FYOO2 - Hodmedod's UK: Research Report on Service Improvement Plan

This report presents a research plan for Hodmedod's, UK, focusing on delivering organic food to their target consumers. It includes a situation analysis using PESTLE and SWOT to evaluate service success, an STP strategy to examine consumer targeting, and a marketing mix strategy to achieve organizational goals. The plan covers market segmentation based on demographics and behavior, targeting using an undifferentiated marketing strategy, and positioning with a price-quality approach. It also details product, price, place, and promotion strategies, along with a budget, profit and loss statement, and cash flow statement for a new organic food delivery service. The report concludes that investing in organic products is beneficial due to the increasing number of health-conscious consumers and that tools like SWOT, PESTLE, STP, and the marketing mix are crucial for evaluating success in the marketplace. Desklib provides access to this and other solved assignments for students.

Services
Improvement
Student Id:

Introduction
• This report discusses the research Plan for
Hodmedod's, UK for delivering Organic food to
their specified consumers.
• It presents Situation Analysis that could be
effective for evaluating the success of services
(Chernev, 2018).
• It also discusses STP strategy for examining
target of the consumers.
• It also demonstrates marketing mix strategy for
the attainment of the organizational goal.

Service improvement
• In the current era, it is analysed that individuals
are failed to keep their health healthy. It brings
complex task for the individual to become
healthy person. Hence, Hodmedod's, UK plan to
made organic food for consumers who are busy
and not have time to maintain their health.
• It is also analysed that consumers are switched
from unhealthier products to healthier products
that would also be supportive for the organization
to obtain higher profit (Hanson, et al., 2016).

Situation Analysis
• Situation analysis is analysed by two certain
techniques such as
o Pestle Analysis
o SWOT Analysis

Cont…
• SWOT
Strengths
 Cost effective
 Operation simplicity
 Quality product and services
 Decentralized structure (Lasserre,
2017).
Weaknesses
 Complexity in deliver in
organization goods and services in
less time
 Lack of consumer satisfaction
Opportunities
 Continue expansion
 Use of innovative techniques
 Customer relationship
Threats
 Competitors pricing
 Changes in the government food
subsidies (Morden, 2016).

PESTLE
Political Factor
• Government support
• Government support
healthy products
• Flexible rules and
regulation
Social Factor
• Multicultural people
• Modern trends
• Media views
• Positive image of brand
Economical Factor
• Interest and exchange
rates
• Favourable economy
situation of country
• No seasonal issues
Technical Factor
• Modern technology
• Innovation potential
• Research and
development
• Tele communication
Legal Factor
• Health policy
• Compensation policy
• Safety policy
• Working hours
Environmental Factor
• Natural hazards
• Water quality
• Pollution
• Air (Wagner and Eggert,
2016).

Segmentation, Targeting,
and Positioning (STP)
• Market segmentation
o The market segmentation is essential technique for classifying their
consumer and launch their product in the marketplace (Trigeorgis and
Reuer, 2017). Organization will consider two following factors to
segment their market:
Demographics segmentation
Behavioural Segmentation

Cont…
• Customer demographics
• Hodmedod's UK could segment their customer on the
basis of age. It could also be segment their consumer
on the age group of 16-39 years of people.
• Behavioural Segmentation
• Hodmedod's UK could segment their consumer on the
basis of life style, attitude, and personality
(Villeneuve and Pasquier, 2017).
• In this, organization will concentrate in medium and
higher class of consumers.
• Organization will consider only health conscious
consumers.

Cont…
• Target market strategy
o Hodmedod's UK will use the Undifferentiated marketing strategy.
o Positioning Strategy
o Hodmedod's UK will use price-quality approach for attracting their
consumers.

Marketing Mix
• Marketing mix strategy enables the organization
to promote their goods and services and sustain
their position in the marketplace (Hill, 2017). The
following strategies will be used by the company:
• Product strategy
• Prices strategy
• Place strategy
• Promotion Strategy

Product and price
strategy
• Product strategy
o Organization will select fresh green color for their organic products and
services.
• Price strategy
o Cost effective strategy

Place and Promotion
Strategy
• Place strategy
o Organization select Urban areas to deliver their goods and services.
• Promotion strategy
o Organization will use digital social media stearate to gain their brand
awareness among huge amount of consumers (Wagner and Eggert,
2016).

Budgeting
New Organic food delivery service (Hodmedod's UK): Resource Requirements
Resources Amount ($)
Stores and Supplies 35,000.00
Machinery 45,000.00
Equipment 40,000.00
Food delivery man (10 workers*$3,000) 30,000.00
Human resource manager (2
officials*$10,000) 20,000.00
Working capital 30,000.00
Total Start-up cost 200,000.00

Profit and loss statement
Profit & Loss
Statement
Month year 0 year 1
Income
Total Sales 62,500 78,125
Less Total Disc/Comm
Total Net Income 62,500 78,125
Less Total Cost of Gooods Sold 25,000 31,250
Gross Profit 37,500 46,875
Expenses
General & Administrative 10,000 10,000
Marketing & Promotional 500 500
Operating Expenses 5,000 5,000
Motor Vehicle Expenses 200 200
Website Expenses 200 200
Total Employment Expenses 5,000 5,000
Occupancy Costs 250 250
Other Expenses 700 700
Total Expenses 21,850 21,850
Yearly Net Profit / (Loss) 15,650 70

Cash Flow statement
• Cash Flow Statement
• Cashflows from Operations
• Cash receipts from customers
• (enter positive amounts) Cash Sales $21,000 $21,500 $19,500
• Cash collected from customers (debtors) $30,000 $35,000 $20,000
• Funding from Creditors $- $- $-
• Stock purchased, not yet paid $15,000 $8,000 $9,500
• Cash paid for $10,000 $20,000 $15,000
• (enter negative amounts) Total Expenses $- $- $-
• Inventory (stock)purchases $- $- $-
• Funding to Debtors
• Sales made not yet collected $- $- $-
• Net Cash Flow from Operations $76,000 $84,500 $64,000
• Investing Activities
• Cash receipts from
• (enter positive amounts) Sale of property and equipment $- $- $-
• Matured Investments $5,000 $5,000 $5,000
• Cash paid for $-
• (enter negative amounts) Purchase of property and equipment $- $- $40,000
• Purchase of investments $10,000 $25,000 $26,000
• Net Cash Flow from Investing Activities -$5,000 -$20,000 -$61,000
• Financing Activities
• Cash receipts from
• (enter positive amounts) Increase in short term debt $5,000 $5,000 $5,000
• Increase in long term debt $- $- $-
• Increase in equity (proceeds from owners) $5,000 $5,000 $10,000
• Cash paid for $-
• (enter negative amounts) Repayment of loans $5,000 $5,000 $5,000
• Dividends $15,000 $15,000 $15,000
• Net Cash Flow from Financing Activities -$10,000 -$10,000 -$5,000
• Net Increase in Cash $61,000 $54,500 -$2,000
• Cash at End of Year $61,000 $1,15,500 $1,13,500

Conclusion
• From the above discussion, it can be summarized
organization should invest in the organic products
as compared to other products and service
caused of increasing number of health conscious
consumers.
• It can can be concluded that organization used
many tools like SWOT, pestle, STP and marketing
mix strategy to evaluate the success of organic
products and services in the marketplace.

References
• Chernev, A., 2018. Strategic marketing management. USA: Cerebellum Press.
• Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic
management: Competitiveness and globalisation. USA: Cengage AU.
• Hill, T., 2017. Manufacturing strategy: the strategic management of the
manufacturing function. USA: Macmillan International Higher Education.
• Lasserre, P., 2017. Global strategic management. USA: Macmillan International
Higher Education.
• Morden, T., 2016. Principles of strategic management. UK: Routledge.
• Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic
management. Strategic Management Journal, 38(1), pp.42-63.
• Villeneuve, J.P. and Pasquier, M., 2017. Marketing management and
communications in the public sector. UK: Routledge.
• Wagner, S.M. and Eggert, A., 2016. Co-management of purchasing and marketing:
Why, when and how?. Industrial Marketing Management, 52, pp.27-36.
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