Marketing Principles Report: Cornflower Blue Company Analysis

This report provides a comprehensive marketing analysis of the Cornflower Blue Company, a firm specializing in herbal-based body care and aromatherapy products. The report begins with an introduction to marketing concepts, including the marketing mix and the importance of understanding consumer needs. It then assesses the benefits and costs of adopting a marketing approach for the company. The analysis delves into macro and micro environmental factors influencing the firm's marketing efforts, market segmentation strategies for its diverse product lines, and the targeting strategies employed. The report further examines how consumer buying behavior impacts marketing activities and explores product repositioning strategies. Key elements of the marketing mix, appropriate distribution policies, pricing strategies, promotional activities, and the extended marketing mix are discussed, offering a holistic view of the company's marketing landscape. The conclusion summarizes the key findings and recommendations for the company's marketing strategies.

MARKETING PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1.1 Explaining the concept of marketing................................................................................2
1.2 Assessing the possible benefits and costs of adapting a marketing approach to Cornflower
Blue Company .......................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Macro and micro environmental factors which affect marketing of firm........................3
2.2 The way in which market can be segmented for two different products of Cornflower Blue
Company.................................................................................................................................4
2.3 Targeting strategy related to Cornflower Blue products and services.............................5
2.4 Examples of the way in which buying behaviour affects marketing activities................5
2.5 Reposition of company's products or ranges....................................................................6
TASK 3............................................................................................................................................7
3.1 Marketing mix elements...................................................................................................7
3.2 Appropriate distribution policies......................................................................................8
3.3 Pricing strategies to achieve organisation's profit and objectives....................................8
3.4 Promotional activities to achieve marketing objectives...................................................8
3.5 Extended marketing mix elements...................................................................................9
TASK 4............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing involves a range of processes concerned with finding out the needs and wants
of consumers. It mainly involves four key elements of marketing mix. The present report is
based on Cornflower Blue Company which is specializing in a sale of Herb based body care and
aromatherapy products. This report covers possible benefits of costs of adopting marketing
approach to the cited firm. Along with this, the elements of extended marketing mix are
identified here.
TASK 1
1.1 Explaining the concept of marketing
Marketing concept is the philosophy that analyses needs and wants of their customers and
then makes a decision for satisfying them. For example, Cornflower Blue Company needs to
focus on making a product which is different from its competitors and satisfy the customers.
Company is using product concept according to which it is offering goods and services with
innovation to the ultimate its customers (Armstrong and et.al., 2014). In this, it makes a product
in a way that it can satisfy the needs and wants of customers. There are several elements included
in the marketing process and the four keys among them are research, strategy, planning, tactics.
Further, the marketing procedure consist of two main steps which are explained below:
First Step (Market place and customer needs)- The market place is one of the important term use
in the marketing concept. This can be understood as a space where businesses promote, advertise
and sell their product and services. Market place can be use by Cornflower Blue Company as a
platform for showcasing their products and services. Customer is one of the most important
element of marketing concept. The success and failure of the company largely depend on the
perspective of the customer. Customer expectation and requirement need to be analyse in order
to make the product more successful. Knowing the customer improving the level of opportunities
for the marketing concepts.
Second Step (Designing a customer driven marketing strategy)- For meeting the needs of the
customers it is essential for the Cornflower Blue Company to develop marketing strategy which
are more customer driven. Customer driven marketing strategy should be well planned and
managed. Some of the example of customer marketing strategy are frequency marketing
programs, need based marketing and geographic segmentation.

Market orientation is the process through which an entity tries to discover and meet the
desires of its customer with the help of its product mix. In context to the Cornflower Blue
Company which is highly market-oriented as it focuses on the providing the products according
to the demands of targeted audience. In order to achieve this, the establishment conducts a deep
market research to investigate the current trends and then develops their product accordingly.
Besides this, the advertising that is done by the Cornflower Blue Company is based on the
products that are desired by the consumers rather than convincing them to buy the products
which they wish to sell.
1.2 Assessing the possible benefits and costs of adapting a marketing approach to Cornflower
Blue Company
There are some costs and benefits related to the marketing approach which are as follows:
 Responding to the demand: As per this approach, Cornflower Blue Company is making
a product after forecasting the requirement of customers. It makes a product for a
customer which are higher in demand so that company sell can be increase.
 Building customer value: Cornflower Blue Company needs to build customer value
which can only be done by a market orientation approach. If company makes a product
which meets the needs and wants of consumers then it increases the loyalty of brand and
retains customers (Challagalla, Murtha and Jaworski, 2014).
 Increasing value raises the cost: Company can increase it values by providing a
warranty on product which they are selling. It increases the cost of Cornflower Blue
Company because they need to hire new staff who can work in different departments.
TASK 2
2.1 Macro and micro environmental factors which affect marketing of firm
Macro factors which affect marketing are as follows:
Political: Political factors are the rules and regulations imposed by government which
affect the marketing of company. For example, if tax rate is increased by the government then
firm’s profit can get affected because it will need to pay high tax rate.
Economic: Economic factors include the problems related to economy like inflation and
recession. For example: at the time of recession, purchasing power of consumers gets decreased
which affects company’s sale.

Social: Consumer lifestyle gets altered with the changes in time so, company needs to
focus on making a product that will fulfil the needs and demand of them (Alserhan, 2015).
Technological: New technology needs to be adopted by Cornflower Blue Company so
that it can serve high quality products to its customers.
Legal: There are some rules made by government related to health and safety of people
so, company needs to adopt it for the welfare of its employees.
Environmental: There are some responsibilities of Cornflower Blue Company towards
its surrounding environment. For example: firm needs to make a product which produces less
wastage so that environment would not get polluted.Some of the micro environmental factors
are:
Employees: Employees are the most important asset for organization so, Cornflower
Blue Company needs to fulfil their needs such as providing them some benefits and job security.
Competitors: There are many competitors of organization that sell almost the same
products. So, company is required to make a product which is different from its competitors
(Stephen Neville, 2014).
Customers: Customers are important for organisation because they buy the product from
company and generate revenue for it. Firm need to make the product according to the taste and
preferences of customers to earn higher profits by gaining acceptability at a large scale.
Shareholders: Shareholders are important for the organization as they are involved in
decision making process because they invest in firm.
2.2 The way in which market can be segmented for two different products of Cornflower Blue
Company
There are different types of segments and company can be done segmentation on the basis
of demography in which it can target people based on their age and income. Two types of
products are herbal based body care and specialist culinary product such as chutney, honey and
teas. For example: young people are more conscious for their skin so company needs to make a
product which will be liked and preferred by them. While on the other hand, women like to buy a
culinary product such as chutney, honey, etc. which they usually require at home. Further, body
care product is made for a customer specification while natural care product is made for a family.
Market segmentation has different sections:

1) Geographic segmentation: it divides markets to geographic criteria.
2) Demographic segmentation: it is based on customer-demographic variables like age, income
etc.
3) Psycho graphic segmentation: it is measured by studying the activities, interests and opinions
of clients like a lifestyle.
4) Behavioural segmentation: it divides consumers into teams according to their observed
behaviour. This company use these two types: Geographic and demographic.
2.3 Targeting strategy related to Cornflower Blue products and services
There are different types of targeting strategies such as differentiated, undifferentiated
and concentrated.
Cornflower Blue Company uses differentiated targeting strategy for targeting its
customers related to its new products and services (Graham and Adams, 2014). In this strategy,
company is targeting its two market segments by campaigns. For example, Cornflower Blue
Company is selling its product in different geographical areas so that sale can be increased.
Under Differentiated targeting strategy, different message in a same campaign for different
segments can also be used. It is an effective strategy for generating awareness related to products
and services among people.
Company use these two types: Geographic and demographic. In Geographic, it divides
markets according to geographic are. Market can be divided as broadly as landmass and as
community or postal codes. Which consists country, region, population, city-town and climate.
In demographic segmentation, this is based on customer-demographic variables like age, income,
family size, socio-economic status etc.
2.4 Examples of the way in which buying behaviour affects marketing activities
Consumers have various tastes and preferences which highly affects the company's
production and marketing strategies as well as hampers the overall business situation. Very first
example is internal factors of consumers which are not constant and affect marketing activities to
a great extent (Vogt, 2016). Internal factors are like income of customers, psychology, living
standards, etc. For example: a customer using Cornflower Blue's goods such as body care
products and when income or standard of living raises then they do not like to use the same

products. They will go for branded products by which selling of mentioned company will get
negatively affected. At that time, company has to change its marketing strategies and launch
products with the help of super models and stars etc.
Furthermore, another example which affects the marketing activities is review which are
a consumer takes from another individual who is using the same products and services. For
example: If there are ten consumers who are using its body care product and they are giving
positive review to other people then they will get attracted to purchase the product. Hence, it can
be said that buying behaviour highly impacts on marketing strategies and activities of business.
2.5 Reposition of company's products or ranges
The Cornflower Blue Company is offering natural, herbal and body care products along
with tea, honey etc. which have better opportunities in the future for increasing profitability
(Wisner, Tan and Leong, 2014). With greater future opportunities, the firm is able to reposition
in existing or new market with same products and new product range as well. In the current
market scenario, there are various companies which are offering same kind of goods and services
to consumers for and when the firm reposition its products then it will be highlighted in the eyes
of existing as well as new customers. Company can reposition its products after doing some
modification and changes which help in attracting more number of customers. Apart from this, it
has to use updated and higher technologies to produce effective products and services which
helps in repositioning of products in niche markets where customers focus only on one product
(Lupton, 2015). It can reposition its goods and services after updating its quality, features, etc.
Reposition is because of attracting more consumers and increase growth as well as profit level of
the firm in industry.
In this there are different kinds of products offer by the Cornflower Blue Company and
among this mainly two products are selected for reposition which are like as body care and
honey. For repositioning to the one product like as body care the CFB needs to use the better
quality of ingredients along with the innovative techniques to produce it. After making changes
in the quality if body care products the Cornflower Blue firm can reposition or relaunch the body
care items in the market which lead to attract more number of the customers. The second product
chosen is relating to the food item which is honey and to reposition it in the market management
of CFB needs to use the higher and innovative technology in order to refine it. Apart from this,

most of the people wants the natural honey without adding any kind artificial ingredients so with
the help of pure and natural quality along with improving it can reposition in the market.
TASK 3
3.1 Marketing mix elements
The elements which are helpful to do marketing of products and services are known as
marketing mix which includes product, price, place and promotion.
 Product: Products of Cornflower Blue Company are natural and herbal which attracts
consumers due to better quality. In terms of place, product is made available at all those
locations to which customers can easily reach.
Product features and benefits: When talking about the only product aspect of the marketing
mix then to attract more number of customers in new market the Cornflower blue company
modifies the products which offered by it. When new food items will be of the high features and
provide at the lower cost then will be the most beneficial for the customers. Moreover, it leads to
switch customers towards the CFB firm which is sign of gaining competitive benefits.
Product design: By changing as well as packaging of products and services the company able to
attract customers as compare to rivals which is sign of gaining competitive advantage.
Product branding: As all the factors related to the food product are as per the needs and
requirements of the consumers then it will create high brand image between society. Along with
this, by using highly effectual promotional activities, CFB able to make higher brand image
which is supportive to gain competitive benefits.
Product Quality: The customers want that quality of services and products will provide by
Cornflower Blue firm at the higher level along with lower prices. In this, it includes more
nutrition’s in the honey and other food items which lead to increase users towards it. In addition
to this, with the help of quality and cost aspect also the firm easily able to meet with the
objectives which is like achieve the competitive advantage in market.
Hence, when chosen business entity offer high quality of goods at the low price then
easily able to gain competitive advantage in the market. Therefore, it can sustain in the
competitive market up to long period time and gain higher benefits.

 Price: In terms of price element, firm is using cost plus pricing method is used by the
business which lead to increase number of customers and achieve marketing objectives as
well (Foxall, 2014). When the Cornflower company uses effective pricing policy and
charge the lowest price of honey and other food items then able to increase purchasing
behaviour of the local community. Moreover, when the cited company charges the lowest
price with higher quality then other consumers will switch towards it. Therefore, market
share will increase and Cornflower Blue enterprise easily gain competitive advantages
within industry.
 Place: The place is also key element of marketing mix with the help of which CFB firm
able to sale its different products and services in the market. The place can be of different
types like as retail or physical shops, online sites and portals, home delivery etc. When
the management of the selected company like CFB provide its food and beauty products
through online and offline both methods, then it will create positive image in the eyes of
people. Along with this, as per their comfort zone, customers can purchase products in
proper and appropriate direct6ion.
 Promotion: Company is promoting its products and services through social media sites
because in today's scenario, major people are surfing on internet. Due to using social
media sites and internet by most of the local community, for the Cornflower Blue
company this is the best method for product promotion. In addition to this, use of the
radio and newspaper is also the most effective promotion tool for old age group of the
people.
3.2 Appropriate distribution policies
In the present case, company provides goods and services which are distributed with
various policies to increase sales and profits of firm. In the current scenario, most of the people
are using internet and social media sites and like to buy goods from online (Rucker, Petty and
Brinol, 2014). Hence, for Cornflower Blue Company, online channel will be effective and helps
to achieve business objectives in effective manner. For example: company is selling a body care
product and provide complete information and ingredients related to respective product. When a
customer is going to buy that product then he/she will easily be able to understand due to given

information. Hence, online distribution policy will prove to be highly appropriate and effective
for the cited business entity.
3.3 Pricing strategies to achieve organisation's profit and objectives
Company is offering better goods and services to customers and going to increase
products and sales after reposition in niche market. Pricing strategies should be attractive and
affordable to achieve its objectives. In the present case, company's objective is to enhance the
profit level and growth as well. When company uses the strategy of achieving economies of scale
then less cost will be incurred to produce more number of goods and services. Lesser price will
lead to charge less price from the customers and help to enhance the number of users
(Novatorov, 2014). When more number of users will be consuming its products and services then
ultimately, the profit will get enhanced that would lead to grow up the company in its industry or
market. Firm has to use the cost plus pricing strategy where it will cover the cost and charge
some percentage of profit. With the help of this, ultimately more number of customers can be
attracted.
3.4 Promotional activities to achieve marketing objectives
Advertising and promotional activities play an integral role in each organisation whether
it operates in any industry or market. These activities help to achieve marketing and business
goals and objectives. In today's market, most of the people are using and surfing internet. So,
promoting and advertising products and services of Cornflower Blue Company through social
media will prove to be highly effective. Company has to promote its goods with appropriate
information on social media sites such as Facebook, twitter and another searching sites such as
Yahoo, Google, etc.
Apart from this, company has to collect mail ids of people through conducting a survey
and then it will be able to give information about products and services on their mail ids ( Wong
and Huang, 2015). By this, it will become easy make the target market aware with the offerings
of firm as well as customer base will be increased. Moreover, company has to do promotional
activities at public show and give sponsorship to attract people towards its products and services.
Hence, social media and internet will be effective to achieve the marketing activities.

3.5 Extended marketing mix elements
There are majorly three extended marketing mix elements, that is, people, process and
physical evidence. It targets the niche market where consumers focus only on one product by
which it becomes able to achieve set objectives. In the firm to distribute and sell products,
company is using online method and social media sites (Hamlin, Knight and Cuthbert, 2016).
Physical evidences are attracted to people like interior and exterior construction of Cornflower
Blue Company. In the extended marketing mix kind of element there are mainly three factors are
considered which are like as people, process as well as the physical evidence. When there are the
CFB going to run the business then requires people for producing and consuming the goods and
services which are like as employees and customers respectively. Apart from this to manufacture
and produce body care and other items the CFB needs the appropriate and proper process which
helps to make in better manner. In addition to this, physical evidence relies with the interior and
exterior environment of the company which should be attractive. When the interior design and
infrastructure of the CFB will be highly attractive then lead to attract higher number of the
customers towards it.
TASK 4
Enclosed in power point presentation
CONCLUSION
From the above report, it can be concluded that there are various micro and macro
environmental factors which can affect the marketing of organization. There are some political
factors which have a great impact on business like tax rate. Further, it can be assessed that
segmentation of company can be done for a product which are sold to customers on the basis of
demography to make it successful in the market.

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