Marketing Fundamentals: A Case Study of Higgidy's Growth Strategies

Desklib provides past papers and solved assignments. This report analyzes Higgidy's marketing strategies.

Marketing Fundamentals

Table of Contents
Introduction................................................................................................................................3
The marketing environment.......................................................................................................4
Positioning and Targeting..........................................................................................................5
Strategies for growth and Marketing Objectives.......................................................................7
Redesign of Mafeking mix to meeting up with SMART objective...........................................9
Budget, Measurement and Control..........................................................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14

Introduction
In the specific report, different discussions will take place for analysing different aspects of
marketing fundamentals at certain extension. The entire study will be based into a famous
food manufacturing organization named Higgidy, which was initially founded back at 2003.
At the initial stage of developing this organization, they were hoping the demand of those
people who want tasty foods but do not has the time to cook it. Their net asset is as close as
£2 million at the end of 2018. They can satisfy the need of their entire consumer base while
considering the cost.
In the entire study, there will be a discussion regarding the current market environment of the
organization. In addition to that, the study will also comprise into the positioning and
targeting strategies of the organization. Additionally, some SMART objectives that can be
taken into consideration by the organization at the time of further growth have also been
assessed in the study. Lastly, different strategies regarding growth and redesign of marketing
mix will also be considered in context to the study.

The marketing environment
In order to analyse the market environment of any organization, three different analytical
methods can be taken into consideration. Those are PEST analysis, SWOT analysis and
porter’s five-force analysis. Since the study is going to be based into Higgidy, PEST, SWOT
and five-force analysis of that organization has been described below:
Pest analysis
Political- They always maintain the basic code regarding maintaining ethical trade
relationship, which ultimately assist them at being politically sustainable at certain extension.
It also assists them at conducting business while maintaining the basic rules and regulations f
connecting business at a country like UK (Visser et al., 2018). As per their political aspects,
they maintain diversity at their workplace, which ultimately assist them at moving up the
satisfaction level of their entire employment base. Lastly, as per the political perspectives it
can be delivered that Higgidy provide healthy fair and safe working aspects for their entire
employment base.
Economic- After analysing the political aspects of the organization, it can be deliver that the
recent incident regarding brexit does not affect the economical perspectives of that
organization. Part of the reason behind that is they do not have presence outside of UK.
However, in recent context as the price of pounds are getting higher and higher, it is
becoming more difficult for them to generate as much revenue as they have anticipated
previously (Chaffey and Ellis-Chadwick, 2019).
Social- They do care about the social aspects as they conduct waste less production. They
also conduct almost 100% recyclable packaging techniques for making sustainable
environment.
Technological- They have some form of online presence as they have their own website and
social media pages. It assists them at gathering the perception of young generation.
SWOT analysis
Strengths- The key strength of the organization is their immense good relationship with their
entire consumer base (Elshiewy et al., 2017). Additionally, they have a large storage and

production capacity, which is also one of their strengths. Their product quality is very good,
which can also be described as their strength.
Weakness- Their key weakness is closely related with their bad transportation service, as
they do not own any. In addition to that, they not interact with their consumer base directly,
which is also their key weakness.
Opportunity- They need to make appropriate marketing strategies in order to move up their
revenue generation at certain extension.
Threat- The continuously increasing rate of competition can be described as their main
threat. Additionally, they generally utilize a low range of profit.
Porter’s five forces
Competition of industry- They have a range of different competitors who sale similar
products. Therefore, the force is high.
Customer power- Customers have very little power as individuals. Therefore, the force is
low.
Supplier power- This organization has a range of different suppliers, which lower the power
of suppliers.
Substitute threat- Customer can cook for them and they can choose products of other
organization, therefore threat from substitute products are high (Davis, 2017).
Threat from new entry- It is not possible for any new market entry organization to represent
competition in front of famous organizations like Higgidy.
Positioning and Targeting
The positioning strategy is very useful in context to the organization Higgidy to access better
opportunities in context to their entire competitor base. This organization mainly uses
perceptual mapping as their prefabricated diagrammatic technique as it assist them at visually
displaying key perception of their existing or potential consumer base at certain extension
(Flint et al., 2016). The company mainly uses perceptual map for competing their products
and for gather information regarding the Ideal point of their entire consumer base. Perceptual
map of these two segments has been described below:

Perceptual map regarding product competition
After analysing several instances, it has come to know the fact that their entire consumer base
like the taste of the orange cream pie and they feel that the taste of that pie is more consistent
and rich in comparison with other orange cream pies that has been delivered by other
organizations. Therefore, the perceptual mapping assists at delivering the fact that Higgidy is
currently enjoying brief competitive advantage because of their orange cream pie.
Perceptual map in context to consumer Ideal
This specific point of perceptual mapping is very helpful at reflecting the ideal product
combination for a certain consumer base, which assists different organizations at getting their
prefabricated competitive advantage (Rowles, 2017). After analysing this segment in context
to the organization called Higgidy, it has been observed that the majority of their entire
consumer bases like to buy Vanilla Cream Pie in addition with sweet tarts. Therefore, these
two products are consumer ideal points in context with the organization Higgidy at certain
extension. Since that organization is able to identify the consumer ideal point in context to
their entire customer base, they can certainly enjoy competitive advantage in their market
segment.
Segmentation technique
The organization in recent context has been used several segmentation techniques in order to
get prefabricated competitive advantage at their market place (Finn, 2017). List of different
segmentation techniques that has been used by the organization in recent context has been
described below:
Segmentation by price
That organization has used price segmentation technique for positioning their product lines in
their recent market place. They divide their price categories in different forms. As an
instance, the price of their pies start from the range of less than $10 and it can go up to $40
dollar every pie. While conducting the segmentation technique, it is entirely possible for that
organization to meet up with the requirements of their entire consumer base despite the fact
of their different economic condition at certain extension (Chaffey and Smith, 2017).
Segmented by Cuisine

In addition with the price segmentation technique, that organization also segment their
products based on cuisine. It assists them at effectively position themselves at their current
marketplace (Schlessinger, 2019). They segment their cuisine based into three different food
products such as pie, sausage and tarts. This segmentation assists them at identifying
themselves as another genre of food organization.
4C regarding successful positioning
After analysing he positioning strategies of Higgidy, it can be described that their market
positioning strategies are being made after analysing the key demands of their entire
consumer base at certain extension. Their positioning strategies are making sense in respect if
their targeted consumer base as they position their products based on price. Therefore, their
positioning strategy maintains the clarity segment of 4C positioning (Waters, 2017). On the
other hand, it is clear that the organization is well known regarding the basic needs and
demands of their entire consumer base, therefore their positioning strategies are compelling.
Besides that, the main objective of their entire organization is to serve their entire consumer
base with good quality products while maintaining the cost of products, which also goes with
their positioning strategy at certain extension. Thus, their positioning strategy is credible.
Lastly, t can be delivered that their strategies regarding positioning can really assist them at
getting competitive advantage since they are conducting their business while maintaining the
basic need of their entire stakeholder base (Rainmaker, 2017). Therefore, as per the 4C of
successful positioning, their segmentation idea is contrasting.
Strategies for growth and Marketing Objectives
Since the organization is going to move forward for increasing their overall revenue
generation, they have decided to take on two different SMART objectives. From that, one
objective will be short term and the other objective will be long term (Martell, 2018). Both of
these objectives have been described below in order to assess the SMART criteria of these
objectives.
First objective- To reduce the overall cost regarding food preparation by 40% at the end of
this financial year for increasing the revenue by 5%
Second objective- To introduce new beverages at the food course by the end of 2021 for
increasing the current market share by at least 10%

After analysing the first objective, it can be assess that the objective is not general and it
unequivocally shows the details of the objective, therefore it is specific. Additionally, the
objective is measurable as it can be ascertained objectively. That organization can conduct
different things like lowering the value of their overall food waste, resource maximization,
attaining different food vendors for achieving the objective, which assist at delivering the fact
that this objective is attainable (Greene et al., 2015). Additionally, this strategy can certainly
assist the entire organization at generating more revenue out of their primary investment,
which describes the fact that their objective is relevant. Lastly, it can be described that the
first objective does have a specific time limit, which utterly describes the fact that first
objective of Higgidy has been constructed based into SMART criteria.
On the other hand, after analysing their second objectives, it can be delivered that they have
a specific unique point, as they want to increase their market share by further extension
through the help of introducing new beverages. This objective is also measurable since they
want to increase their overall sales by 10%. Besides that, introducing new beverages as a part
of their new food item can certainly assists them at getting more consumer that they have
initially expected, which ultimately assist them at achieving better market share (Johnson,
2018). In addition to that, this specific strategy can certainly assist the organization to grow at
their recent marketplace, which shows that this is a relevant objective. Lastly, Higgidy is
opted to achieve this objective at the end of 2021, which illustrates the fact that it is bounded
by time and thus confirm that the second objective is a SMART objective.
Application of Ansoff matrix for justifying SMART objectives
Four different strategies are mainly associated with four different strategies, which are
market penetration strategy, product development strategy, market development strategy
and diversification strategy.
After analysing the two SMART objectives that has been crafted by the organization named
Higgidy, it can easily assess the fact that they are focusing more into product development
strategy as their SMART objective as they assess that they might be able to increase their
overall revenue generation through the help of the SMART objective at certain extension.
After analysing the SMART objective, it can easily assess that the firm is opted to introduce
new product line at their existing market base, which can ultimately assist them at getting
bigger competitive advantage (Waheed et al., 2017). In that smart objective, they try to cater
the existing product line of one of their competitors for enhancing the quality of that product.

Therefore, the smart objective can be justified through the help of product development
strategy, which actually belongs from the Ansoff matrix. Therefore, it can be described that
their second objective can assist them at further growth.
On the other hand, strategy regarding introducing different beverages as their new food item,
Higgidy can penetrate their existing marketplace. As per the Ansoff growth matrix, any
market penetrating strategy can assist firms like Higgidy to increase their overall market
share.
Lastly, decreasing the cost regarding food preparation by 40% can inevitably decrease the
overall cost of different existing food products belonging from Higgidy, which ultimately
help them at attracting new consumer base alongside with retaining existing consumer base.
Therefore, it can be described as a market penetration strategy that can assist organizations
like Higgidy to increase their overall revenue generation.
Redesign of Mafeking mix to meeting up with SMART objective
4P marketing mix can be described as the marketing theory that is seller oriented and based
into product, price, place and promotion. However, 4C of marketing theory put more focus
into customers rather than actual products, which is very effective at boosting the sales of a
range of different organizations (Mitra, 2016). Therefore, it can be described that using 4C of
marketing mix over 4P of marketing mix can be beneficial for different organizations like
Higgidy to meet up with their SMART objectives, which will ultimately assist them at
growing. Application of 4C of marketing mix has been described in the later section of the
study.
Customers
This is the first C among four other C of this marketing mix. According to this, organizations
should only sell those products that have demand at the market. Therefore, organizations like
Higgidy need to make market research before adapting about their consumer needs and
wants. Customer research can also be taken into consideration for getting the perception of
their entire consumer base without wasting much resource. As of their SMART objectives, it
is clear that they want to increase their market share by introducing beverage as their new
product line. In order to do this, they have to know what kind of beverages has highest
demand among the consumers of fancy beverages. Alongside with that, as they target middle-

income families as their primary targeted consumer, they need to conduct market research
regarding the perception of middle-income people about their beverages.
There are many lucrative ways to do this. However, the easiest way to do this is by unlocking
an entirely untapped market for developing new products for it. It is much more effective
than trying to make a readymade product at certain extension. In addition to that, it can assist
different organizations like Higgidy at enhancing their marketing capabilities at certain
extension. This marketing strategy can be very helpful for the organization at delivering right
products at right consumer base, which will ultimately assist the organization at making more
profit out of their primary investment.
Cost
As per the segment of 4C marketing mix, price can be described as the small part of the total
cost regarding building a new product. As per this component of 4C marketing mix, different
organizations like Higgidy has to reflect the need of their consumer base by conducing more
price sensitive marketing strategies. It can assist different food related organizations like
Higgidy to increase the overall potential of their entire organization by considering their cost
as per the requirement of their entire consumer base at certain extension.
In this specific context, it can be easily described that their short-term SMART objective is
closely related with the cost consideration at certain extension (Pike, 2016). As they are opted
to decrease their food operation cost by 40% in order to increase their overall revenue
generation by at least 5%. However, this strategy of them can certainly assist the entire
organization to move down the base cost of different products. In addition to that, decreasing
the overall cost of different products can assist them at attaining new consumer base at
certain extension.
Cost can increase the perception of different consumer base regarding the products of a
certain organization. The buying perception of different consumers can also be altered
through the help of appropriate marketing strategy.
Communication
This C of marketing mix is closely related with the promotional aspect of different
organizations like Higgidy at certain extension. However, it is essential for different
organizations like Higgidy to review the perception of their entire consumer base before

making effective pricing strategies. However, it is needed to be taken into consideration that
the entire buying process in respect with a consumer base falls under the communication
process. Therefore, organizations like Higgidy need to alter the buying process of the entire
consumer base for promote their products towards their desired consumer base.
Convenience
The need and preference of different consumer base varies upon different substances and it
changes very often. Therefore, organizations of recent context need to analyse the buying
preference of their targeted consumer base in order to sell products in a convenient way.
Therefore, it can be described that marketing strategy of different organizations need to
adhere of the present need and want of consumer base. Higgidy is going in right direction, as
they know that their consumer base want beverage as regular as they want pies or cakes.
Budget, Measurement and Control
Budget is closely associated with almost every single aspect of conducting business in recent
marketplace. Organizations need to have an amount of budget for conducting a range of
dfferent marketing activities at certain extension. Similar to that, in order to run the
organization while following the basic principles of the SMART objectives, Higgidy also
need to conduct different marketing strategy. A list has been described below, which will
illustrate different marketing methods that have been taken into consideration by the
organization Higgidy. Different costs of conducting these marketing methods have also been
illustrated in this section of the study.
Marketing Strategy Cost
Internet marketing £14 thousand
Paid advertisement £26 thousand
Transactional marketing £10 thousand
Table 1: Cost of different marketing strategy
(Source: Created by the learner)
From analysing the above described table, it can be illustrated that three different kinds of
marketing strategy can be beneficial for that organization at moving up their revenue
generation at certain extension. By conducting internet marketing, it is entirely possible for
that organization to reach towards a new consumer base while not wasting much time.

Additionally, paid advertisement can assist them tat enhancing their brand equity a certain
extension. Besides that, transaction marketing can help them at move up the perception of
buyers without risking many things.
In order to measure the success rate of their marketing strategies, they need to conduct
several different things. As an instance, they can check the growth rate of their revenue
generation. Besides that, they can check the traffic level of their web for getting an idea of
how many consumers visit their official website at a regular basis. Social media can also be
very beneficial in this context.