BMG527 Business Strategy: Mormor Magda's Competitive Analysis Report

This report provides a comprehensive analysis of Mormor Magda's business strategy, focusing on the strategies employed by Angela Hafstrom to establish and grow her natural ingredient ice cream business. It delves into key drivers such as marketing, competitor recognition, crowdfunding, and new product introductions. The report examines the application of technology, customer needs, and competitive dynamics, including the use of social media and sustainability practices. Furthermore, it explores new strategies and models adopted by Mormor Magda, such as intelligent marketing and the freemium model. The analysis incorporates Porter's Five Forces, Bowman's strategy, and STP (Segmentation, Targeting, and Positioning) to evaluate the company's competitive position. Finally, the report includes a PESTLE analysis, competitive analysis, and future recommendations for Mormor Magda's continued success.

B
BUSINESS STRATEGYMODULE:
HANDBOOK 2020/21
BMG527 CRN
26th October 26, 2021

Table of Contents
Introduction 1............................................................................Error! Bookmark not defined.
Introduction...........................................................................................................................................1
Key drivers............................................................................................................................................1
Marketing strategy.............................................................................................................................2
Recognition of competitors................................................................................................................2
Crowdfunding....................................................................................................................................3
Introduction of new products.............................................................................................................3
Increasing the land area coverage......................................................................................................4
Technology........................................................................................................................................4
Customer needs.................................................................................................................................4
Competition:......................................................................................................................................5
Social media......................................................................................................................................5
Sustainability.....................................................................................................................................5
New strategies and models for Mormor Magda.....................................................................................6
Intelligent marketing strategy............................................................................................................6
Freemium..........................................................................................................................................6
Porter.................................................................................................................................................7
Supplier power...............................................................................................................................7
Buyer power..................................................................................................................................7
Competitive rivalry........................................................................................................................7
Threat of substitution.....................................................................................................................8
The threat of new entry..................................................................................................................8

Bowman's Strategy............................................................................................................................8
Low prices.....................................................................................................................................8
Loss of market share......................................................................................................................8
Monopoly pricing..........................................................................................................................9
Hybrid............................................................................................................................................9
Focused differentiate.....................................................................................................................9
Risky high margins........................................................................................................................9
Low price and low added value.....................................................................................................9
Differentiation...............................................................................................................................9
STP..................................................................................................................................................10
Environmental marketing strategy - product stewardship................................................................10
Future recommendations.....................................................................................................................11
Evaluation analysis..............................................................................................................................11
PESTLE...........................................................................................................................................11
Political factors............................................................................................................................11
Economic factors.........................................................................................................................12
Social factors...............................................................................................................................12
Technological factors...................................................................................................................12
Legal factors................................................................................................................................12
Environmental factors..................................................................................................................13
Competitive analysis:......................................................................................................................13
Conclusion...........................................................................................................................................14
Appendices..........................................................................................................................................14

References...........................................................................................................................................14

Introduction
Angela Hafstrom is an entrepreneur who introduced a natural ingredient ice cream to her
hometown then nationwide. She started to put her plans on paper in 2011 with the support of
her husband, brother, and few friends. Initially, she started her business with the mortgage
money of her own house. With her and her family and friends' support, she could bring her
dream business to reality by the end of 2015. This continuous five years of struggle paid off.
During this journey, she learned a lot of new techniques and skills to develop new businesses
(Fosher, 2018).
In her journey of these five years, she is learning how to stick with the original scope of the
brand and how to extend it her business regionally and scale-wise. She knew this when she
introduced the waffle cones with her ice creams. She then realizes how it does not go with the
scope of the brand. Then she learns how to add variety in her product will accord to the taste
of her potential and actual customers. Her aim in this journey was to bring satisfaction to her
customers and give them the feeling of appreciation they are looking for (Çitilci and Akbalık,
2020).
Key drivers
Angela used specific strategies to establish the business of natural ingredient ice cream in her
nation. In these strategies, she has experienced many ups and downs. This bumpy journey
taught her a lot regarding the ice cream business with entirely new ideas. Now she is capable
and experienced in this field to guide and advise the people who are new to this business and
develop it. The strategies used by her are as follows mentioned.

Marketing strategy
Angela used the marketing strategy to create awareness of the new ice cream manufacturers
in town. She used platforms of Facebook, Instagram, blogging, and many other social media.
She aimed to post on the 4 to 5 times every week. Like this, her product will attract potential
and actual customers and come into the eyes of the locals. This Strategy helped her spread
her words about her natural ingredient, ice cream, and inform people about it. Through these
posts and blogs, she aimed to attract the customer and tell everyone how her product is
outstanding the other products available in the market. She informs others how her product is
healthy and yummier without directly saying so (Layrisse et al., 2020).
Recognition of competitors
In every business, there are competitors. They are the firms or manufacturers of the same or
similar products or ideas. In this case, Angela realizes that she is not only dealing with the
local or national level vendors, but in fact, she is dealing with international level vendors too,
like Unilever. She now has a clear image in her mind of what she is dealing with and what
strategies can be implemented to generate maximum efficiency (Pan et al., 2019). She has the
idea of the quality of her product and region of her coverage or equivalent to being dominant
in this business field. She can now make an educated decision on the variety of flavours to be
launched in her product by analyzing the product flavour sales of her competitors (Koeder
and Tanaka, 2017) (Prasad, 2019).
Crowdfunding
Crowdfunding is a strategy to invite potential investors through campaigns. People invest in
some minor new scale business by looking at their idea and executions plan. When satisfied
with the project and idea, they support a small or adequate amount of money to build their

business and become the stakeholders. This technique has attracted a lot of stakeholders for
Angela's business. These campaigns might be frustrating and hectic, but the results or
outcomes are so satisfying that it overcomes all the journey's hardships. This way, the newly
started business gets an adequate sum to establish it and bring it to the larger scale with their
hardships and support (Yuan et al., 2017).
Introduction of new products
Mormor Magda started as an ice cream brand that only supplies homemade, totally natural
ingredient products. With time, Angela introduces new flavours to her brand and
contemporary representation. After getting success and a reputation in various flavours in her
development, she teaches the waffle cones. She now put her ice cream in the cones. This
increases her sales, too, exponentially. After some time, she introduces some new flavors
such as eggs, nuts, and preservative-free ice cream products. As a result of this, nowhere the
range of customers increases. This is because now her product is considerate of all kinds of
healthy, allergic, and diet-conscious customers. The newly introduced product should be in
the scope of the original product or brand (Aokerstien and Lemon, 2017).
Increasing the land area coverage
Angela started her business in her hometown, a small town. She implemented all the business
strategies here, like marketing, customer attraction, and many more. She created awareness of
her product. When she was satisfied with the rank of ice cream manufacturer competitor at
the level, she moved to the higher level, city level. She started to make supplies of her
product in the cities nearby her town. She also implemented all the strategies to create
awareness that she has a master's in her village. Besides that, she learns and applies some new

systems too. Similarly, after gaining satisfaction in the rank board, she moved to the national
level (Fatehi and Choi, 2019).
Technology
Technology has been changing the entire landscape of business over the past years, more
automation lead to more speed with which a task was performed and the productivity
increased tens folds, Angela has been in the business for some time and herself saw how her
business expanded with use of technology, IT would keep an effective track of product and
client details and their invoices. And helped with increased communication between the
employees.
Customer needs
Understanding what the customers want is important, knowing so would help in delivering
the product effectively, knowing what your customers want is the bible of effective company
running 101. Angela has perfected this art by interacting with her customers personally over
social media platforms and listening to their queries herself. A basic customer need would be
a healthy snack for themselves. Angela would work her way through to make a healthy ice-
cream product with adding the right ingredients. Listening to customers is boosting your own
growth.
Competition:
You can have your company grow and have it crumble down both owning to the competition
of the field. Competitors especially that are performing in the same area as you are for
example ice-cream companies can be even more threatening. Angela outperformed her
competitors by using ingredients that were not readily present in the market and hence,
attracting more audience.

Social media
Making more relationships and contacts? Social media is your answer. Social media also
caters to getting in up and personnel with your customers and hearing to their quarries, the act
is something that not many brands do or entertain. Angela on the other side is a keen listener
of queries of her customers on social media. And this surely leaves an impact on the
customers and brings about a sense of trust and readily available brand’s feedback. Hence
improving the company’s overall image.
Sustainability
Low carbon emissions, utilizing sustainable sources and having a low overall carbon
footprint. The mentioned stuff is something people notice and appreciate. The environment
watchdogs surely mark you as a complying brand. And hence again winning their market
base and increasing profits.
All these strategies mentioned above were applied and experienced by Angela to promote her
product. She has gained impression success in this. She was in touch with her clients through
social media and her blogs, conveying her ideas and taking suggestions from them about her
next move. This gives her the insight of her client that what they are looking for in her
product, which was proven to help improve her services and development. This gives her
confidence in her next move as the expectation of the targeted audience integrates it
(Rietveid, 2018).

New strategies and models for Mormor Magda
Intelligent marketing strategy
This is the Strategy used to make an intelligent decision for business while keeping the
customers, competitors, and resources in consideration. This used data of all the factors and
generated smart choices for the large scales. This helps the core team to decide hat at the
current time what step should be taken according to the current market situation. It also helps
the core team to decide whether to expand their business or not. If to be developed, at which
areas and domains should be worked on. This Strategy also informs about the regional
growth of the company. This Strategy will help Angela grow, expand, and achieve her goal of
being an international level ice cream manufacturer. (Aghazadeh, 2015)(Bagheri et al., 2019).
Freemium
This is a strategy in which the firm's organization provides free basic or limited access to its
product. This is like the offering of the free product as a sample. This is beneficial for both:
customer and the manufacturer. The customer can get insight into the taste and the feeling of
the product that it can offer. The customer can judge whether the current flavor of ice cream
will provide the desired satisfaction of liking or not. For the manufacturer, it can be the
source of more significant benefits and profits. By giving the free samples, they can convince
the customer to purchase in larger quantities. The manufacturer can also help to introduce the
new product in the market. (Kingsnorth, 2016)
Porter
Supplier power.
Angela should be aware of the pricing scheme as a seller that is to cash her populate by
increasing price with the increase in demand. Supplier power is defined in Porter's five forces

as the influence suppliers can place on firms by raising prices, diminishing quality, or
reducing product availability. When you undertake an industry study from the standpoint of
industry, you are examining supplier power. (strategiccfo, 2021)
Buyer power.
Angela should be aware of how with the decrease in demand, she must lower her price to
attract more customers. Five forces Model of Buyer Bargaining Power refers to the pressure
that consumers can put on firms to make to produce better goods, good customer service, and
cheaper costs. (strategiccfo, 2021)
Competitive rivalry
Angela should be aware of her competition in the market as there are a lot of ice-cream
parlors in town, all aim to get on the top. The degree or level of competition among
businesses in same sector or industry is known as market rivalry.(Porter's Five Forces
Analysis: Rivalry Among Competitors, n.d.)
Threat of substitution
Angela should be aware of all the competition. She should pant her idea of ice cream so that
no one else can copy it. The existence of a product that consumers can buy instead of the
industry's product, according to Porter's concept of substitutes. A substitute performs from
another sector that provides customers with similar advantages as the work manufactured by
the company's firms. The threat of substitutes shapes the industry structure, as according
Porter's five forces. (G.Smith, 1990)
The threat of new entry
She should be aware of all the beginners on this business side. This will help her to keep an
eye on them and their process. The threat of new entry in Porter's five refers to the danger
that new rivals bring to established competitors within the industry. As a result, a prosperous

industry will draw in more competitors trying to make money. (Varelas and Georgopoulos,
2017).
Bowman's Strategy
Bowman's Strategy is a valuable strategy used to predict the positioning in the marketplace
and gives an idea about the market value of the product. This Strategy is based upon the
Ansoff Matrix and Poster's Generic Strategy
Low prices
To attract more customers, Angela should keep the price of her product as low as possible.
Lower prices that still put the company in profit are the way to go. The goal of this technique
is to sell a large number of items. The value of the items or services is low, and the price level
is as low as feasible. It is the least competitive field just on Business Plan as a result of this
combo.(KENTON, October 02, 2021)
Loss of market share
This is the most unlikely Strategy. Angela should adopt when her product is unable to fulfil
the need or desire of her customer. This is the most dangerous position to be in, as it indicates
that the company is quitting the market or declining. It's possible that they selected this
technique as part of a shift to emerging economies, or that it was imposed upon them because
a result of an improper price and the market fit. (Robert D. Buzzell, 1975)
Monopoly pricing
Angela should get the price on her product by analyzing the pricing of her nearby parlous,
neither too high nor too low. Because a single business controls the product and pricing in
monopoly marketplaces, other factors such as price points, value, and competitors have less
of an impact. Of course, all monopolies eventually come to an end, therefore these businesses