Marketing Mix Report: Orti's Organic Bakery and Michael's Cafe

This report provides a comprehensive analysis of the marketing strategies employed by Orti's Organic Bakery and Michael's Cafe. It begins with an introduction to the marketing mix, emphasizing its importance in business success. The report then delves into a detailed assessment of Orti's Organic Bakery, covering its marketing objectives, target customers, pricing and promotional strategies, distribution channels, and market positioning. An external environment analysis examines political, legal, economic, social, and technological factors influencing the bakery. A marketing report evaluates the product, price, promotion, and place aspects of the bakery's marketing mix, including a SWOT analysis and recommendations for improvement. The second part of the report focuses on Michael's Cafe, assessing its marketing policy, the success of its advertising campaign, and proposing changes to the marketing mix, including product, pricing, promotion, and place. Recommendations for monitoring the marketing mix are provided, along with an analysis of the impact of these changes and a budgetary plan. The report concludes with a summary of the key findings and recommendations for both businesses.

BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT 2.............................................................................................................................1
1.MARKETING MIX REPORT.................................................................................................1
2.External Environment Analysis...............................................................................................2
3. Marketing Report...................................................................................................................3
ASSESSMENT 3.............................................................................................................................5
1Michael's Café Marketing Policy..............................................................................................5
2 success of the advertising campaign........................................................................................5
3changes to the marketing mix...................................................................................................5
4 recommend for monitoring......................................................................................................6
5 Impact of the changes made by the Michael's Cafe.................................................................6
6. Budgetary Plan........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing mix is a marketing plan which covers various aspects such as product ,price
place and promotions. Effectiveness of marketing is very is important to carry out a successful
business. The below report will include the analysis of effectiveness of marketing plan and how
to change the marketing mix in case of failure of the launching campaigns. The study will give
various possibilities which can help the business in improving its sales revenues and creating a
effective customer base.
ASSESSMENT 2
1.MARKETING MIX REPORT
Introduction
The given report will describe the marketing mix plan of the Orti's Organic Bakery. Its
marketing objectives , target customers , pricing and promotional strategy, its distribution
channels and positioning in the market.
Marketing Objective
Marketing Objective is to achieve the business goals aligning the vision and mission of
the Bakery. To provide the customers with the tasty organic baked foods having positive impact
on their health. Leveraging a local brand into additional locations in few years (Storey, 2016).
Product
Company's product is the key to success of the organisation therefore it is important that
the Organic Bakery should focus on meeting the customer demands and requirements whether
regarding a product that bakery is selling or the services it is providing to the customers. Bakery
is mainly known for its excellent taste in baked products like croissant, bagels, scones, egg on
bagel etc.
Target Customers
The Orti's Organic Bakery is to target customers of every age group from 22 to 40 years
living near the Union Station, having belief and values for organic baked food which is
nutritional and customers having professional jobs mainly. The motive of the company is to
provide its customer with healthy and natural foods which are high in quality (Bell, Bryman and
Harley, 2018).
Pricing and Promotional Strategy
1

The prices charged by the bakery are approx 15% costlier than its competitor Bakery
chains. The premium prices are because of its high quality organic products and the customers
are ready to pay for the quality, without affecting the sale ratio of the company. Bakery is
bringing new promotional strategies such as e-newsletter, advertising over website online and
using google ad words using social media for posting the recent updates , through newspapers
etc. the company is also doing psychological promotions for its products by schemes such as 1
baked product for purchase of 5 , coffee for purchase over 3pound, and most attracting 15%
discount for purchase above 15pound.
Distribution Method
Bakery will be using Direct distribution method for its product distribution. It will not be
using any mediators like home delivery services for distributing its products. Bakery will accept
online orders for its products but customer will be required to come in person at stores for
collecting their orders.
Positioning
The bakery is focusing on quality attribute for its positioning strategy. As the vision of
the company is to provide healthy and quality products. And the customers will associate the
price with quality delivered to them .
2.External Environment Analysis
Organic Bakery is a food business therefore it has to abide by various political and legal
factors. The bakery is situated roadside union station because of which it may face parking issues
which will affect the sales of the bakery as the customer will not like to be charged with fines.
The economy is going through a strong phase as a result the people are having strong
purchasing power and they are capable of buying and paying extra without sacrificing the quality
and health which is a promotional point for the business (Bloom and et.al., 2018).
Society is becoming more health-conscious in comparison to previous years. Everyone is
paying attention towards what they are eating, whether it is beneficial for their health or harmful.
Increased consciousness will encourage the customers to eat healthy and nutritional products
without compromising their health. This is going to raise the sales as the bakery is primary
producer for nutritional products which will keep people and especially youth healthy and fit.
People will not be sacrificing quality for the prices which will again be a good point for the
bakery.
2

Bakery is using machines which are operated by computer software which will increase
the production of the business. Use of machines will reduce the manual work which will be
helpful in creating more hygienic conditions in the bakery kitchen. Use of machines will help in
meeting customers demands quickly and reducing the cost of its baked goods. Other technologies
are helping the bakery in promoting its business over various social platforms and will help the
bakery in attracting new customers.
Bakery has to abide by new rules and regulations laid down by various new food
authorities and also have to obtain licence for food business, quality standards etc.
Bakery is situated near Union Station therefore is going to have many new customers on
a daily basis. Bakery should provide packed food which are easy to carry for the customers. The
product should have lasting impact for attracting customers from new locations(Bloom and et.al.,
2018).
3. Marketing Report
Objective
Orti's Organic bakery situated near Union Station is serving to build a belief for organic
healthy breakfast is essential to have a positive attitude and good health. Planning to serve
commuters and building local brand for leveraging it over other locations. Bakery is targetting to
serve daily customers and professionals near Union Station between the age group of 22-40 years
Marketing Mix Evaluation
Product
Bakery is providing pastries which are made of healthy nutritional fruits
Organic baked products which are high in quality for health-conscious customers.
Easy to carry packaging of the products.
Product is mainly aimed at attracting regular customers near Union Station or living nearly at a 5
minute distance. Bakery is aiming at customers who earn GBP40000 per annum and above. Also
at customers who are willing to pay premium prices for the organic goods.
Price
Organic Bakery is following cost based pricing approach for its product. Pricing of the product
becomes simpler and understandable to the customer. High prices can influence the customers of
the bakery. Customers will be switching over to substitutes if there would be continuous hike in
prices. Bakery may lose its regular customers seeing its high prices.
3

Promotion
The organic bakery is currently promoting its products through social media platform like
Facebook, twitter, etc. and offline through newspaper. The bakery is further planning to promote
the business through Business cards, program brochures, poster ads on public conveyance, online
through Google ads and ads through other websites.
Place
Bakery is currently distributing its products only to customers visiting the bakery. Bakery
can use indirect distribution channels like delivery service apps for distributing its online orders
which will increase the sales of the bakery. Bakery can have its own delivery team for its product
distribution across locality (Veblen, 2017).
People
Target customer of bakery are between the age group of 22-40 and the professionals.
Bakery is also targeting the health conscious customer who can pay premium prices for the
nutritionally rich products. Customer approach is difficult for professionals as bakery is not
providing the delivery service (Burns, 2016).
Impact and Importance of the following
Promotional Methods
The promotional means are important as they will bring the customers to the bakery.
Promotional methods of bakery will bring awareness and will attract new customers. Ineffective
promotional methods can cause the business to slow down and will not allow it to expand.
Channels of Distribution
Distribution channels help the business to increase its coverage area. Bakery should adapt
both direct and indirect channels for its products. Direct distribution will only bring the
customers who are near the Bakery and the bakery will not be able to reach its desired objectives.
Customer Service
Customer services of the bakery are good and gaining positive reviews. Good customer
service will lead to satisfied customers and bakery will be retain its customers if they are well
treated.
4

SWOT Analysis
STRENGTH
 Nutritional organic baked products
 Natural fruit products
OPPORTUNITIES
 Increasing Health-consciousness
 Machine made production
WEAKNESSES
 Limit coverage area
 Ineffective distribution channel
THREATS
 Increase of Substitutes
 Hike in prices of natural products
Recommendations
Bakery can also keep products for kids and children as they will add to the customer base
and bakery should adopt indirect distribution channels for meeting it sales and other growth
objectives.
ASSESSMENT 3
1Michael's Café Marketing Policy
The company has failed to comply with its promises of weight loss through their exotic
coffee bean increasing the metabolism of the of the body. It also made promises for its products
to cater for allergies like dairy-free, gluten free, nut free etc.
2 success of the advertising campaign
The advertising campaign became successful as people are becoming more health
conscious. Coffee is a very commonly used and is daily necessity of many office workers. The
advertisement successful as Cafe made promises about weight loss increasing the metabolism of
the body It attracted many office workers and health professionals due to its weight prospects
and low cost. But got a significant drop as the beans were not helping to reduce weights even
after paying high prices(Hair Jr. and et.al., 2015).
3changes to the marketing mix
Product
 Cafe can sell complementary products like chocolates instead of cup to the customers
which will attract special attention of customers.
5

 Cafe should take professionals reviews for gaining the trust of the customers for organic
food as well as for products which can cater for some allergies.
Pricing
 Cafe should lower down its prices to stabilise its existence keeping in view of the down
fall experienced due to the wrong promises.
 Cafe should use customer based pricing approach to gain the trust of the customers.
Promotion
 Cafe should increase its advertisement channels like also promoting its products over
social media platform.
 Cafe should use dietary experts reviews to show the positive impact of the new exotic
coffee beans.
Place
 Cafe should extend their working hours as many professional arrive after the office hours
for hangouts to the cafe which can help the cafe to cope with its downfall(Peng, 2016).
4 recommend for monitoring
Monitoring Marketing Mix
Michael should lay procedures for tracking sales response of the customers and reviews
after launching every new marketing campaign. Objective of the cafe is to increase sales and
attract loyal customer base. Response process will help the cafe in analysing the success of the
efforts made by it to in crease the sales. It will also help the cafe to know how far it has gone in
gaining the customer's trust.
5 Impact of the changes made by the Michael's Cafe
The change in marketing mix will make a slight effect on the desired marketing
objectives of the cafe. Complementary products will increase the costing of the coffee , but it
cannot increase the prices of the products because of the failure it has faced in past. Professional
reviews will help in gaining customer trust over the product. Increasing the promotion channels
will help n attracting new customers and will also increase the brand awareness in the region.
Cafe will have to extend its working hours which will increase the labour costs thereby
increasing its overall costs of the cafe (Quinlan and et.al., 2019). Monitoring strategy will help
the cafe in getting the success ratio of its new campaigns as well as the feedback will suggest the
ways for improvement.
6

6. Budgetary Plan
Budgeted forecast for the next six months.
Month Jan Feb March April May June
sales 15000 16000 17000 18000 15000 20000
total cash inflow 15000 16000 17000 18000 15000 20000
cash outflow
rent 2000 2000 2000 2000 2000 2000
salaries 5000 5000 5500 5500 5500 5500
administration cost 1500 1500 1000 1000 1200 2000
total cost 8500 8500 8500 8500 8700 9500
Net profit 6500 7500 8500 9500 6300 10500
Above forecast report will help the managers in formulating the plans for its effectiveness. And
to do required arrangements to accomplish the desired objectives(Scholes, 2015).
CONCLUSION
By carrying out the above analysis it is concluded that for the success of the business
marketing plan is very important. The objective of the company should be aligned with every
strategy it is accepting for the business. Marketing mix elements have a specific importance in
the success of the business . Product should be unique and specific to have a standing in the
market. Its pricing strategy should be dependent on the positioning of the business. Promotion
give a business a new hike to the business but at the same time false promotions can damage the
business significantly. Place of the business also influence the target customers. Therefore every
business has to be very effective in laying its marketing mix for having the growth and
sustainability in the market.
7

REFERENCES
Books and Journals
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Bloom, N. and et.al., S.J., 2018. Really uncertain business cycles. Econometrica, 86(3), pp.1031-
1065.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Hair Jr, J.F. and et.al., 2015. Essentials of business research methods. Routledge.
Peng, M.W., 2016. Global business. Cengage Learning.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Veblen, T., 2017. Absentee Ownership: Business Enterprise in Recent Times-The Case of
America. Routledge.
8