Identify and Evaluate Marketing Opportunities

This article discusses marketing opportunities for Desklib with a case study on Tesco. It analyzes market trends, identifies opportunities, estimates demand for increased sales and profitability, and explores the marketing mix of Tesco.

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Identify and Evaluate Marketing Opportunities
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Identify and Evaluate Marketing Opportunities
Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
Part A...........................................................................................................................................4
Analysing and identifying two market opportunities..............................................................4
Identifying opportunities analyse information on Tesco.........................................................5
Research potential new markets for Tesco..............................................................................6
Gap analysis of Tesco and types of markets and aspects of marketing mix............................7
Effect of two marketing opportunities on the business of Tesco.............................................9
Estimation of demand and their effects on sales and profitability of Tesco............................9
Innovative options for each opportunity................................................................................11
Part B.........................................................................................................................................12
Covered in PPT......................................................................................................................12
Task 2.............................................................................................................................................12
Executive summary...............................................................................................................12
Part A.........................................................................................................................................12
Determining organizational fit, profitability and operational implications...........................12
BBQ fun sales data................................................................................................................13
Part B.........................................................................................................................................15
Analysing three opportunities................................................................................................15
Impact to current business and customer base.......................................................................17
Considering different aspects................................................................................................17
Assessing external factors......................................................................................................18
BBQfun Policies and Procedures...........................................................................................18
BBQfun simulated business documentation..........................................................................19
Return on investment on each opportunity............................................................................19
Rank tree marketing opportunities.........................................................................................19
Changes to current operations...............................................................................................20
Adequate changes..................................................................................................................20
Justification of changes based on quality..............................................................................21
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Identify and Evaluate Marketing Opportunities
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Identify and Evaluate Marketing Opportunities
Introduction
The chance of marketing is a sales-acceptable lead that qualifies as per your product or service
requirement. The Sales Representative determines that this person or company has the
opportunity to sell (Ratiu and Avram, 2013). Generally, the sales representative should
determine that the possibility is to have a budget, need, and authority to buy our product.
TESCO is retail supermarket having headquartered in Welwyn Garden City, England, UK. It is
the third largest retailer in the world. It was founded in 1919 by Jack Cohen. It has stores in 12
Countries across Asia and Europe. It has a market share around 28.4%. It has 460,000
employees, 6,809 shops and 79 million revenues from per week shopping trips.
The main objective of this assignment is to support and explain two marketing opportunities
which are identified in an assignment. Marketing mix for TESCO like distribution, products, and
types of promotional activities is also considered.
Task 1
Part A
Analysing and identifying two market opportunities
It is always important for the firms to utilize market opportunities because it helps them in
achieve competitive advantage over others. In the present time's company like Tesco has a higher
opportunity in the market. It has to utilize it by making many plans and policies which will help
them in moving in a particular path to obtain objectives (Wertime and Fenwick, 2011). Two
major marketing opportunity that Tesco can apply is Market development and product
development.
Market development: Checking the growth graph is the very much significant task for the firm
like Tesco. It can only be possible if the company is able to sell its existing product in the new
markets. This has been considered as significant for the firm in order to increase its revenue
because it provides the opportunity for the firm to enhance its base customers. Since Tesco has
diversified range of products, it can easily grow its roots in the new regions.
Product Development: This has been considered as another most important marketing
opportunity that this company has. It aids in developing a culture where new products can be
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Identify and Evaluate Marketing Opportunities
innovated (Malhotra, Birks and Wills, 2013). The company can market these new products a
better way so that they can create a fresh image in the minds of people.
Identifying opportunities analyse information on Tesco
Product development and market development are two strategies that can be adopted for
attaining competitive advantage. Other than this it is to be understood that analyzing information
is essential for the firm's growth. After accessing the available information it can be said that
Tesco has to grow at the faster rate since the competition is getting intense (Bean and Hussey,
2012).
Comparative market information
Comparative marketing information is concerned to the examination between the competing
brands or the similar products. The comparison is between the prices or the other similarities.
Some of the biggest competitors of Tesco are Sainsbury's, Morrison, Walmart, Waitrose and
ALDI etc. The comparison can be done against the products of Sainsbury and Tesco as both are
leading brand names in the supermarket sector.
Competitor’s performance
With the acquisition of ASDA, Walmart has become one of the key players in the industry. They
have larger stores and are considered as one of the biggest in the UK. Apart from this ALDI and
LIDL are other names that are intensifying the completion. They have shared a very larger part
of the market. Sainsbury's is also increasing the rate of intensification in competition.
Customer’s requirement
This industry has been performing exceptionally well in terms of understanding the demands of
the consumers and shaping their business accordingly. In modern lifestyle, people do not have
time for availing their requirements from different shops and they want that very thing must be
available for them at ease (Huotari and Hamari, 2012).
Legal and ethical requirements
One of the prime duties of a firm is to manage and follow all the ethical conducts of the
company. No false promises should be made to the consumers while marketing the products.
Any sort of evil practices by Tesco may result in legal considerations that may not be in the
goodwill of the firm and may result in a large amount of monetary loss.
Market Share
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Identify and Evaluate Marketing Opportunities
It is termed as the percentage of the market that is captured by the company. In terms of profits
and many other considerations, Tesco is the largest retailer in the UK and has covered 28.2 % of
the total market share in the industry inside the UK. It has increased its grocery market share by
around 5 times in last five years.
Market trends and development
There has been the continuous shift in the market demands of the people. This has started many
new kinds of trends. With the limitation of time with the people are coming to the larger
supermarket retail stores and buy all the things of requirements at once. Since there had been
continuous fluctuation in the UK economy and the decisions such as Brexit has reduced the trend
of buying expensive products (Weinstein, 2013).
New and emerging markets
There are various suburban areas which are having the larger potential for growth hence Tesco
can start its operations at these places. Apart from this, there are many developing countries
which are having higher scope for Tesco. A report by Global Retail Development Index suggests
that around 30 out of the 300 developing nation has the higher potential and can act as an
emerging market.
Profitability
Tesco is generating the larger amount of profits from its operations. Since a there larger number
of people that are coming for buying things from the stores hence they can gain the larger
amount of profits (Cox and Wray, 2011). This company has been ranked the best in the industry
in terms of profits generated by various companies.
Sales figure
Until this time in 2017 the company has made and a sale of around 49.9 billion pounds which is
up by 4.3% what it was last year (finance.Yahoo 2017).
Research potential new markets for Tesco
There is a larger scope for the expansion of Tesco. These potential markets are providing
sustainable growth of these firms. It can be understood by following descriptions:
Export markets: There is a number of export markets available for this company especially the
South East Asian countries. In the countries such as India where FDI in multi-brand retails up to
100 % has not been approved.
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Identify and Evaluate Marketing Opportunities
A segment of the market not currently penetrated: It has not penetrated in the market
segment that deals with the products for small children especially toys and their daily activity
items.
Increasing market share: With new product development strategy the business corporation can
satisfy the needs of larger sections of the society and the market share can be increased
(Kapferer, 2017).
Developing new markets
There are new markets for which company can develop its products. As the economic policies
have to experience changing trends, it has become easier for the firms to expand their business
reach (Rusek et al., 2013).
Gap analysis of Tesco and types of markets and aspects of marketing
mix
Current State Future State Action/Proposal
Expensive compared to Aldi, Lidl
and Morrison’s
To be more competitive and
customers see the value of
Tesco's products (Kumar,
2012).
Advertise more offers such
as buy one get one free,
price matching on certain
products costs. Use their
CRM data to identify
customers to target with
marketing campaign about
Tesco value brands (Wu et
al., 2013).
The two marketing opportunities which Tesco has to focus is Product development and Market
development. These are explained below:
 Product development: Product development, also called new product management, is a
series of series that includes the concept, design, development, and marketing of newly
created or new re-branded goods or services (Jones and Rowley, 2011). Tesco has a
product development opportunities as Tesco continues with the overhaul of its brand food
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Identify and Evaluate Marketing Opportunities
range, in the days following Christmas, "Tesco is healthy" is launching a new brand to
appeal to health-conscious customers.
 Market Development: Market development is a development strategy that recognizes
and develops new market areas for current products. Currently, a market development
strategy is a goal for non-buyers in targeted areas. It also targets new customers in new
segments. Tesco has a new market development opportunity in main UK grocery trade,
non-food, international expansion and retail services such as financial services, dot-com
business, and telecommunications package (Foxall, 2014). In fact, Tesco is using its
strong stable core, while moving forward the business, while it moves forward to new
risk areas of development.
Types of Markets:
There are five different types of markets, which is explained below:
Perfect Competition: Perfect competition is a market system that is characterized by many
different buyers and sellers, in the classic theoretical definition of ideal competition, there is an
infinite number of buyers and sellers (Satit, 2012).
 Monopoly
 Oligopoly
 Monopolistic Competition
 Monopsony (Goworek and McGoldrick, 2015\
Marketing Mix of Tesco
Tesco PLC is the leading brand of the supermarket in the UK. It has managed to gain so much
popularity that its stores have crossed the boundaries of the United Kingdom and have reached
twelve other countries in Europe and Asia! Founded by Jack Cohen, Tesco Market Stalls started
as a bunch.
Some of the important marketing mixes of Tesco are discussed below:
Products: Tesco offers a wide range of products, including food, clothing, electronics, financial
services, etc (Laczniak and Murphy, 2012).
Promotional Activities: The biggest advantage of Tesco is its low cost; it sets it apart from other
supermarket chains, and this is what it uses to increase its brand image. Tesco adopted various
types of promotional activities explained below:
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Identify and Evaluate Marketing Opportunities
E-Commerce: Through digital marketing, the company promotes its products online. Also, it
provides facilities to their customers to order online (Linoff and Berry, 2011).
Direct marketing: In this strategy of promotional mix, company appoints sellers for a door to
door marketing and to collect feedback from customers.
Telemarketing: Tesco’s appointed separate department for tele calling. Its basic role is to call
interested persons and try to convert them into potential customers of a company.
Effect of two marketing opportunities on the business of Tesco
Both the market opportunities for the Tesco, Product Development as well as Market
Development are highly useful for the company to gain the competitive edge over others (Bauer,
2012).
Effect on sales volume
Both these marketing opportunities have the larger effect on sales volume. Since market
development helps in capturing the larger part of the market hence it also increases the chances
of selling the products (Babin and Zikmund, 2015).
Growth
Growth and marketing opportunities are directly proportional to each other. More the number of
markets developed by the company more are their chances to grow as a firm (Della Corte et al.,
2013).
Market share
Both these market opportunities have increased the market share of the company in the industry.
Developing new markets helps in capturing larger population (Meissner, 2012).
Profitability
Both these market opportunities help a company in making more profits (Erragcha, 2016).
Developing new products or markets helps to sell more products which ultimately increases the
profitability of the Tesco.
Estimation of demand and their effects on sales and profitability of Tesco
The demand of Tesco can be estimated with the help of least square methods. Least square
methods is a form of mathematical regression analysis, which finds a line of best fit for a dataset,
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Identify and Evaluate Marketing Opportunities
which causes a visual representation of the relations between the data points (Grönroos and
Ravald, 2011).
Line of Best Fit Equation
The best fit line determined by the least squares method is an equation that tells the story of the
relationship between the data points (McDaniel, Hair and Lamb, 2011).
XX YY
1 2
2 5
3 3
4 8
5 7
Solution:
XX YY XYXY X2X2
Yˆ=1.1+
1.3XY^
=1.1+1.
3X
Y−Y
1 2 2 1 2.4 -0.4
2 5 10 4 3.7 1.3
3 3 9 9 5 -2
4 8 32 16 6.3 1.7
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Identify and Evaluate Marketing Opportunities
5 7 35 25 7.6 -0.6
∑X=15∑X=15 ∑Y=25∑Y=25 ∑XY=88∑XY=88 ∑X2=55∑X2=55 Trend
Values ∑(Y−Yˆ)=0
Effect of this estimation demand on sales and profitability of Tesco is explained below:
There is a heated relationship between supply and prices of goods and services when demand is
unchanged.
If the supply of goods and services has increased, the demand remains low, the prices are low
balance value and high quantity of goods and services (Sheth and Sisodia, 2015). If there is a
shortage of supplies for goods and services, the demand remains the same, the prices increase in
high balance value and in small quantities to goods and services. Supply and demand increase
and fall until the balance of a balance reaches. For example, suppose a luxury car company
determines the price of its new car model for $ 200,000.
Innovative options for each opportunity
Marketing Development: The development of marketing strategy is a very important task for
every organization; it requires detailed analysis of each and every aspect of the business involved
(Perreault Jr, Cannon and McCarthy, 2013). Here are some of the steps below that require Tesco
while developing a marketing strategy.
 External Analysis
 Setting Objectives (Hollensen, 2015).
 Formulation of strategy
Product Development: New product development can be described as a five-step process,
which begins with progress to create ideas and to market full product. Among the processes you
evaluate and evaluate the product, take steps to protect your thoughts, and can finalize the design
in the R & D phase. Details on each stage are as follows:
 Generating ideas (Warner, 2010)
 Evaluating and screening product ideas
 Protecting your ideas
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Identify and Evaluate Marketing Opportunities
 Finalizing design research and development (Mishra, 2015)
Promoting and marketing your product
Part B
Covered in PPT
Task 2
Executive summary
BBQfun is doing business in a best possible way and operating in the industry of selling food
and outdoor products retail. It can make use of the three marketing opportunities like
manufacturing and sell products under brand name, selling goods at the bargain price as well as
selling products using e-commerce websites (Luchs and Swan, 2011). These e-commerce
websites are highly helpful in reaching a large number of consumers in the market. There are
several kinds of changes that company is making so as to assure that all the opportunities are
utilized efficiently. There are many kinds of policies and procedures that have been made by the
firm so as to bring appropriateness in the processes. This helps a company in capturing the larger
part of the market as well as increasing the profitability of the firm by enhancing the sale of the
company's items.
Part A
Determining organizational fit, profitability and operational implications
There are three kinds of marketing opportunities that are used as the BBQ fun. Their
organizational fitness, profitability and operational implications have been discussed below:
Manufacture and sell own brand: This is one the best market opportunity that this company
has. It is highly fit for this company as it can manufacture its own product and can sell it to the
customers. They have excellent employees to ensure that tasty product is available for the
consumers. Selling under the own brand name provides the opportunity for the company to
create a better place in the market (Kowalkowski, Witell and Gustafsson, 2013). While talking
about the profitability it is to be understood as the manufacturing and selling products under the
own brand name reduce the operational cost which increases the overall profit of the firm. It
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Identify and Evaluate Marketing Opportunities
reduces the dependence of the firm on other distributors hence its operational implications are
positive.
Sell products through e-commerce: Since there is a large number of customers that are
connected to the e-commerce sites these days so in the age of the internet it is beneficial for the
firm to make use of this. They can deliver the food and another outdoor life style easily. It will
increase the profitability of the firm as the sale will increase (Polonsky, 2011). On the other
hand, it will fasten the sales and marketing process hence operational implication will be
positive.
Sell products at bargain prices: This can also be applied in the BBQfun as it enhances the sale
of the firm hence it will be effective to increase the profit margins of the firm. It will have
somewhat moderate implications as the profit will depend on the amount of sale done.
Ranking is like
 Selling products through e-commerce
 Manufacturing and sell products under own brand name
 Sell products at bargain price
BBQ fun sales data
a) Market potential
BBQ FURNITURE ACCESSORIES
OWN BRANDS (given) (A) 7200 3120 40320
BARGAIN MARKET
(A)*[25%/24%] 7500 3250 42000
E-COMMERCE (24%
market share) 7200 3120 40320
TOTAL SALES POTENTIAL 21900 9490 122640 154030
b) Number of buyers in e-commerce
BBQ FURNITURE ACCESSORIES
Buyers (OWN BRANDS) (A) 7200 3120 40320
Market Share (B) 24% 24% 24%
Total Market Potential
(Buyers) (A/B) 30000 13000 168000
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Identify and Evaluate Marketing Opportunities
C) Sales Unit Volume Calculation for E-Commerce and Bargain Market
BBQ Furniture Accessories
E- Commerce Buyers (a)
5256
(21900*.24) 2278(9490*.24) 29434(122640*.24)
Quantity Per Buyer (b) 1 1 3
Sales Unit Volume (a*b) 5256 2277.6 88301
Bargain Market Buyers
5475
(21900*.25) 2373( 9490*.25) 30660( 122640*.25)
Quantity Per Buyer 1 1 3
Sales Unit Volume 5475 2373 91980
d) Estimated total revenue and gross profit
own brand e-commerce
BARGAIN
MARKET
total sales (a)
BBQ (7200) 4320000 4464000 3750000
FURNITURE (7500) 2652000 2745600 2112500
ACCESSIORIES (7200) 2016000 2217600 1680000
Total revenue 8988000 9427200 7542500
VARIABLE COST (a-b) =
(c) own brand e-commerce bargain market
BBQ 720000 2214000 3750000
FURNITURE 780000 1435200 528500
ACCESSORIES 403200 1377600 1648800
own brand e-commerce bargain market
total contribution (B)
BBQ 3600000 2250000 0
FURNITURE 1872000 1310400 1584000
ACCESSORIES 1612800 840000 31200
gross profit 7084800 4400400 1615200
e) Net profit for each opportunity
own brand e-commerce
BARGAIN
MARKET
gross profit 7084800 4400400 1615200
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Identify and Evaluate Marketing Opportunities
Less: additional fixed
cost 2000000 600000 -
Net Income 5084800 3800400 1615200
f) Profitability index for each opportunity
own brand e-commerce BARGAIN MARKET
the present value of cash flows(note) a
18258216.7
4
11340257.5
8 6419024.5
initial investment(total fixed cost) b 5745459 4345459 3745459
profitability index a/b 3.18 2.61 1.74
The cash flows for 3 years are assumed in the question so as to determine the present
values of cash flows.
Gross profit or cash flows (A) 7084800 4400400 2529600
Discounting factors at 8% 1
0.92592592
6 0.925925926 0.9259259
2 0.85733882 0.85733882 0.8573388
3
0.79383224
1 0.793832241 0.7938322
Total of discounting factors(B)
2.57709698
7 2.577096987 2.577097
present values of cash flows(A*B)
18258216.7
4 11340257.58 6519024.5
g) Total cost of operational changes
own brand e-commerce
BARGAIN
MARKET
Total cost 10774714 10774714 10774714
additional cost (Given) 2000000 600000 0
total cost 12774714 11374714 10774714
Part B
Analysing three opportunities
A) Organisational marketing plan, structure, products, and services.
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Identify and Evaluate Marketing Opportunities
Marketing plan: There are many components of the marketing plan which is as follows:
Situational analysis: It is important for the firm to understand that company has to understand its
situation in the industry (Grégoire and Shepherd, 2012). This firm is doing good business in the
industry and can apply effective strategies for gaining bigger market share.
Budget
Particulars Amount in USD
Direct marketing 14000
Sales 7000
Traditional
advertisement
6000
Social Media
Marketing
3000
Total 30000
Structure: Its organizational structure is hierarchal structure is followed. Top of the hierarchy lies
the leader, below which there are many executives and managers, under them, there are line
managers and under them lies staffs.
Product and services: This company sells products like food items as well as other outdoor retail
products.
B Principles of marketing
It is important for the firm to make use of concepts of marketing in a better way. This includes
many elements of marketing management process, product management, product lifecycle,
Branding, packaging, and labeling (Murdy and Pike, 2012). The marketing mix is as follows:
Product: It is serving many kinds of products such as food items as well as many other outdoor
retail items. Apart from this they also sell other luxury items homemade items.
Place: It is choosing its outlets from selling its products. Apart from this they can choose internet
sites for selling its products
Price: The pricing strategy that is chosen by the firm is lower price range. The price that is
tagged with the product is on the lower than competitor’s price.
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Identify and Evaluate Marketing Opportunities
Promotion: There are many places where a product is being promoted. It can promote its
business using signboards, TV and newspaper ads. Apart from this, they can sell their products
using digital marketing.
C Marketing information
This company is performing well in terms of profit it is generating. The sales figure is also
showing the revenue of the company has seen an inclination which will help a company in its
growth in the market.
Impact to current business and customer base
a) Sales volume in bargain market is higher for all the three products as it higher market
share than the other two opportunities. It has 25% of market share in the potential sales
and hence it has the sales volume 7500, 3250 and 40320 units of BBQ, Furniture, and
Accessories. Therefore it will have wider customer base (As determined above)
b) The gross profit, as well as net profit of own brand market, is highest among all the three
opportunities and hence it must be adopted from the point of view of sales.
c) The size of the potential market in 2012-13 can be determined by the numerical analysis
by determining the individual market's buyer and aggregating them. The individual
market shares are given in the question for all the respective markets and the number of
buyers is shown in part (a) of question 2.
Considering different aspects
Impact on growth plans: If company apply all these strategies then the growth of the firm will
be ensured. This company is planning to expand its business in many other markets (Chaffey,
Smith and Smith, 2013). All these marketing opportunities can foster the growth factors and
hence company can make long-term profits.
Market share: Using all this marketing opportunities company can increase its market share
which will help a firm to grow a business and have the competitive advantage over others
(Palmer, 2012). Especially the opportunity to sell products using e-commerce can help a firm in
reaching to new consumers and hence company can have the greater market share.
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Identify and Evaluate Marketing Opportunities
Knock out factors: There are certain factors that knockout the opportunities like the external
environment which is defined using factors such as Political, Economic, Social, technological
and legal.
Assessing external factors
Codes of practices and models
There are many practices that are done inside the company and it is important for the firm to
make the code of conduct for it. These codes must be on the best practices in the industry
(Kumar and Mirchandani, 2012). There are various models that have been given by many
researchers which can be utilized by the firm to use marketing opportunities.
Regulations: There are many regulations that are made by the company so as to make sure that
they can generate the higher amount of profits. This regulation helps in safeguarding the interest
of all the stakeholders while implementing any new marketing opportunities. These regulation
are developed after citing the rules and laws that are made by the government of various
countries all around the world (Zwick and Cayla, 2011). These regulations have made the
company ensure that all the activities within the firm are under the ethical consideration which
might get affected while implementing marketing opportunities.
Relevant legislation: There are many kinds of legislation that are applied in this context. Some
of them are as follows:
 Employment Act
 Equality Act
 Minimum Wages Act
 Consumer laws
BBQfun Policies and Procedures
This company is applying best Policies and Procedures so as to increase the effectiveness of the
firm. The policies related to the activities are clear and well communicated. Procedures are
applied in the ways so that it satisfies the demand of the market and hence company can
implementing marketing opportunities in a better way (Sheth and Sisodia, 2015). All the ethical
considerations are taken into account when any marketing plan is made. This ensures that
activities are accurate and in the best of firms interest.
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Identify and Evaluate Marketing Opportunities
BBQfun simulated business documentation
It is important for the cited company to document all the processes. Since there are many kinds
of major cost that are associated with the BBQfun. Some of the major cost that is involved is
related to the technology that has been used. Another major cost is related to the processes as
well as the cost of availing resources for the products.
Manufacture and sell own brand: The major benefit related to this is that it reduces the
operational cost and risks that are associated with this is that it may reduce the chances of
expansion (Gummesson, 2011).
Sell products through e-commerce: Benefit that is associated with it is that it helps to increase the
reach of the firm to the larger amount of people. The risk that is associated with it is that there
are many kinds of ads comes simultaneously hence people may not see the ads at the time.
Sell products at bargain prices: The benefit that is associated with this is that it enhances the
sale of the products using distributors and retailers (Dávila, 2012). The risk that is involved in
this that it reduces the profits of the company.
All these risks give the advantage to the competitors as they can make better strategies to make
more profit from this company.
Two strategies or approaches to mitigate risk are as follows:
 Differentiation: If the company make more kinds of product available to consumers then
it can satisfy the needs of many people hence the sale of the firm can increase.
 Innovation: This is the most important strategy that can help in fulfilling the needs of the
many people and it gives the product competitive edge over the others.
Return on investment on each opportunity
OWN BRAND E-COMMERCE BARGAIN MARKET
the present value of cash flows 18258216.74 11340257.58 6519024.5
initial investment 5745459 4345459 3745459
profitability index 3.18 2.61 1.74
Rank tree marketing opportunities
The top-ranked opportunity is the own branded market as it has the highest profitability both in
the terms of gross as well as net profit. However, it must try to widen its customer base. Also, the
company must try to reduce its avoidable fixed cost by utilizing its human resources efficiently.
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Identify and Evaluate Marketing Opportunities
It must provide them adequate training to handle the operations both online and offline. The
operational changes must not make the company compromise with its product quality rather it
should be improved further.
Changes to current operations
Additional staff is required to undertake the necessary operations of customer handling and to
promote the online sales. Additional staffing will require an average annual cost of $ 25000.
Distribution cost: to enable the distribution, 6 trucks will be required and the distribution cost per
tuck will be $20000. Therefore the total cost will be 120000
Equipment: Three forklifts will be required for the business at $10000 each.
Promotional: promotional cost must be incurred to promote the business of the company on both
the platforms i.e. online and offline. It is given that $500000 will have to be incurred in this
regards.
Staff training: training must be given to the staff members to make them learn the existing staff
members about the customer servicing skills. For each staff member, a cost of $ 3000 will be
incurred on their training. Cost of staff training will also include = $24000 (3000 * 8).
Adequate changes
There are several kind changes that company can make for having success in the market. Since
the company has to make alterations in their business processes they have to take all the ethical
aspects of the interest of the people associated with the firm. Some of the changes are in terms of
technology being used for different activities of the firm like marketing or production. They have
also made changes in terms of organizational operational procedures.
This would help the firm in making the larger customer base that comes from different target
groups of the society (Kotler, 2011). This diversified consumer base helps in increasing the sale
of the firm and hence increasing the profit margins of the people. Apart from this, it has also
ensured that quality of the service is maintained. It can also be understood using technological
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Identify and Evaluate Marketing Opportunities
equipment reduces the amount of error that is generated in a production process. Reducing the
errors always enhances the quality of the final product by adding the value to it.
Justification of changes based on quality
Taking more use of technology reduces the operational errors which ultimately enhances the
quality of the products (Webb and et. al., 2011). Technology helps to monitor any kind of
disruptions in the working process. The changes in the operational procedures have added the
value to the products.
Conclusion
In the limelight of the above-executed analysis, the identification of the marketing opportunities
for the business entity has been presented. Use of various approaches and methodologies has
been described and various statistical data has also been presented for supporting the same.
21

Identify and Evaluate Marketing Opportunities
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