Question

Strategies The single objective is to position Basket of Goodies as a manufacturer of unique, attractive, gourmet gift baskets for individuals as well as corporate customers. The marketing strategy will seek to create customer awareness regarding the product offerings, develop the customer base, and work toward building customer loyalty and referrals that will significantly decrease customer acquisition costs. BOG will seek to communicate the message that they offer a higher quality, gourmet alternative for gift baskets relative to the baskets currently available. This message will be communicated through various methods, tailored to each target market. The first method will be the use of a Website. The Website will have product information, company information, as well as ordering information and order taking. The site will be useful to both targeted groups, individuals as well as corporate customers. The second method will be brochures, primarily marketing to individuals. These brochures will be dispersed through many different sources. The last method of communication is networking and it is primarily for the corporate customer. Before founding Basket of Goodies Susan worked within the Human Resource Department of several larger corporations and has developed a large list of contacts. Susan will leverage these personal/professional relationships to generate business for BOG. Since she has worked within the HR departments before, she is quite familiar with the buying habits and decision making processes; key knowledge for generating corporate sales. 3.7 Marketing Mix BOG's marketing mix consists of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing- BOG will be charging a per basket fee for the stock production baskets. Regarding the custom baskets, a price can be quoted once the customer decides on the ingredients that they want. • Distribution- While the orders for the baskets can be placed on our secure Website, by phone, or at the office, the distribution of the product will occur from the office and can be shipped to any continental U.S. address. • Advertising and Promotion- A Website, brochures, and networking will be used to raise awareness and generate sales. • Customer Service- Following benchmark companies such as L.L. Bean, Eddie Bauer, and Siemens, customer service will be a priority. Susan truly believes that reputation is everything. The Basket of Goodies Page 9 3.8 Marketing Research The informal market research began five years ago when Susan was purchasing a gift basket for a friend. She did not have the time to make her own basket so she called a few different places to get quotes. Over the next few years she purchased several more baskets from established companies while keeping the idea in the back of her head that she might start her own basket company. With this idea she analyzed the different vendor's offerings. While working on the initial business plan for BOG, Susan held two focus groups, each with seven to nine people, to determine customer preferences in regards to gift baskets. The focus groups explored the different preferences that the people held in regards to gifts and gift baskets. Although Susan had a list of questions already drawn up that she asked both groups, she also had time set aside where there could be a free flow of discussion. The focus groups proved to be a very worthwhile exercise giving Susan valuable insight into the participant's minds as well as confirming a number of assumptions that Susan held. Overall, this market research confirmed and strengthened the BOG business and marketing plan.

Question: Describe each of the factors of the mix (all four of the 4Ps). Is this the right mix?

Answer 1

Marketing mix is the collection of various ways with which a particular firm achieves its marketing goals. It basically consists of four Ps which are product, place, price and promotion.

For this given case:

The product of this firm is gift basket but of higher quality compared to the gift basket already available in the market. This will give an advantage to this firm compared to its competitors.

The place of this firm would be a website that will be created for the firm where the buyers can place their orders. The orders can also be placed on phone calls. The client base for this firm is people from any US continent. So the customer base for this firm is huge and not limited to a small region only.

The promotion of the product of this firm will be done with the help of its website on the internet, through brochures and also through networking. This will make a lot of people aware about this firm.

The price of the good baskets by this firm will be set per basket for stock production. There will also be choice of making customised baskets and the price of these baskets would be according to goods in that basket.

Such a market mix is a great combination and will definitely help the firm to achieve its goals. The firm will have a great product to compete and a huge client base and will be able to promote its product well and have good sale at this price if it works with such a marketing mix.