Reflective Case Analysis
Reflective Report代写 This report is going to indicate the business marketing outcomes, descript marketing management activities
Business name: FruiTea Time
Unit Name: AMB240
Tutor Name: Sandy Sergeant
Student ID: N10180885
Student Name: Kewei Guo
Word Count: 2628
Date:03/11/2019
1.0 Executive summary
The group 01 of TUT 04 creates a fruit tea brand called FriuTea Time in Qutopia 2019. FriuTea Time sells convince, affordable and delicious fruit tea that target at 18-30 years old young females. Reflective Report代写 10 flavors of fruit tea have been offered to customer, $20 a pack, and bundle the price at $50 three packs. To achieve business objective, 4ps marketing mix and other marketing theories have been consider in running the business, such as product design, stall decoration, minimum costs, online communication to customer, and price bundling etc.
However, FriuTea Time lose 9.38% of profit after two market days.Reflective Report代写 There are two management problems in FriuTea Time. This report is going to indicate the business marketing outcomes, descript marketing management activities, identify two key business management problems and give two alternative solutions, reflect individual critical and give two recommendations for future.
2.0 Table of content
Summary of marketing outcomes ———————————————————– 4
Profit and lose —————————————————————————– 4
Marketing objective ———————————————————————– 4
Market share ——————————————————————————- 5
Description of marketing management activities —————————————— 5
Analysis of management issues: problem identification ———————————–8
Statement and evaluation of alternatives —————————————————–8
Pricing solution ————————————————————————— 8
Promotion solution ————————————————————————9
Individual critical reflection ——————————————————————- 9
Recommendations for future —————————————————————- 10
Business recommendation ————————————————————– 10
Personal recommendation ————————————————————– 10
References ————————————————————————————- 11
Appendices ———————————————————————————— 12
3.0 Summary of marketing outcomes
3.1 Profit and lost
In total, FruiTea Time sell 200 units of products, the average price per unit is $10.53. The revenue of FruiTea Time is $2,105 in QuTopia market day. The cost of scales (production) is $1882, which including $82 of product material costs and $1800 of wages.Reflective Report代写 The deliver fee of FruiTea Time product is $100, and the stall cost is $300. The other expenses such as stall design, decoration and uniforms are $30.
The total expense of FruiTea Time is $2,312. Unfortunately, the FruiTea Time loses $207, which is a -9.83% of profit after 2 Market days. FruiTea Time sold significant units of products, and products has been sold in a promotion of 50% off in last half hour of market day2. Reflective Report代写 There is a money lose in the business of FruiTea Time, the revenue of FruiTea Time did not cover the costs of the business. The profit and lost statement will be shown in graph1
Graph 1: Business Profit and Lost Statement
3.2 Marketing objective
FruiTEA Time has 3 business objectives, first objective is to achieve the sale of 25 packs by MD1 and 30 packs in MD2, second objective is to reach sales of $2,000 in QUTopia market days. Thirdly, FruiTea Time aims to gain minimum of 20 likes in the official Facebook page.
Firstly,
14 packs of FruiTea Time products has been sold in market day 1, and 40 packs of FruiTea Time products has been sold in market day The business objective of sale quantity has been achieved on market day2.
Secondly,
the objective of $2000 revenue has already been achieved, and the total revenue of FruiTea Time is $2,105, which is more than $2000. However, the cost of the FruiTea Time business is $2,312, which is more than the objective of $2,000. Reflective Report代写 The second objective is not a good objective to achieve in the business.
Thirdly,
FruiTea Time got 24 likes in official QuTopia Facebook page. The goal of gaining 20 likes in facebook has been achieved, and the business objective of online communication with customers has been achieved. Reflective Report代写 Although the FruiTea Time has achieved the majority of business objectives, such as 30 quantity sales in market day 2, $2,000 total revenue, and minimum 20 likes in social media, the FruiTea Time do not have profitability goal in QuTopia market day.
3.3Market share
FruiTea Time is a business in QuTopia market day, which sell convenience, delicious, and affordable fruit tea. There are 10 flavors in product line, the products has been sold in packages. 3 competitors have been identified in Qutopia market, the first competitor is Dao Cha, the second one is Sip IT and the third one is TEA. EXP.
Firstly,
The total sales revenue of Dao cha is $4,055, 220 units have been sold on the average price of $18.73. Dao Cha made 41.5% profits and contributes 31.31% of market shares in the Tea market.
Secondly,
Sip IT is another competitor for FruiTea Time. The turnover of Sip IT is $1,530, and it only contributes 11.81% of market share. 44 numbers of units has been sold in an average price of $34.77 per unit.Reflective Report代写 The Sip IT loses 71.18% profit at the end of Qutopia market days.
Thirdly,
the biggest competitor of FruiTea Time is TEA. EXP. The turnover of TEA. EXP is $5,260, and it earns 2,190.79(41.65%) of profit. 128 units have been sold in an average price of $41.09. The market share of TEA. EXP is 40.62%,Reflective Report代写 which is the biggest market share in tea business. Graph 2 will show a QuTopia market share calculation
Graph 2: QuTopia Market Share Calculation
4.0 Description of marketing management activities
Table 1: Summary of Marketing Management Activities and Individual Performance
| 1. Financial Situation Summary: | |||
| Negative · Did not achieve breakeven · There is a 9.38% of profit lose in Qutopia market day · 50% discount in the last half hour of market day 2, the sale price is lower than the costs · There are still some inventory left after Qutopia market day etc | Positive · The material and products costs is $82 in total, the stall costs is $300 · The costs has been controlled as less as possible | ||
| 2. Company Analysis Summary: | |||
| Negative · There is no exactly leader in the management team · The group have not been organized properly · The misunderstanding information might be delivered in the business · The ideas of products could be delay to complete. · No motivation skills have been used from director to manage other managers. etc | Positive · Diagonal communication, everyone can share their ideas and opinions · Everyone feel free to talk in the group · Lateral communication- communication that takes place at same levels of hierarchy in FruiTea Time · Everyone in the team take a afford to the business · Everyone make decision together with putting everyone’s opinion together | ||
| 3. Marketing System Summary: | |||
| Negative · The objective of $2,000 revenue is not a proper objective for FruiTea Time · The average unit price is so low that less than the cost · The 50% off promotion in last half hour of market day 2 is a mistakes · The appearance of the product is too simple without any attractive design (Appendix) · etc | Positive · The stall place is good enough to attract people (appendix) · The package and flavour of product has been intentionally designed to attract target customers who is 18-30 female · The stall put variety of fruits at the table as decoration. | ||
| 4. Customer Analysis Summary: | |||
| Negative – The target customer might do not have enough patient for a product than other generations. – The target customers do not seek quality & value of money. – The products of FruiTea Time could target other generations as well such as generation X and Y. etc | Positive · Target at 18-30 females by using QuTopia census. · Targat customers have lots of interesting of FruiTea Time products and they are willing to buy it. · Young optimism in QuTopia market da has been targeted cause they do not mind to try new things. · The business has already made sure that the target customer has enough money to buy the products. · The market size of target market in QuTopia is 196, which is enough for making profits. | ||
| 5. Competitor Analysis Summary: | |||
| Negative · The market share of FruiTea Time is just 16.25% · Not much people in QuTopia market know about FruiTea Time · Less promotion strategies of FruiTea Time than competitors. · The stall decoration of competitors is better than FruiTea Time. etc | Positive · Unit price is lower than competitors, which encourage customer to buy products of FruiTea Time · The products cost of FruiTea Time is lower than other competitors. · FruiTea Time have more product line more flavours | ||
| 6. Personal Analysis Summary: | |||
| Negative · I did not make really efficient communication between team members · My management skills is not good · I did not sale many products in market day, because I am too shy. etc | Positive · I give ideas and opinions in decision making · I bought and organized the products from TaoBao and ship to Australia · I help the operation of business by using my personal experience and what I learned before such as market mix and management strategy. | ||
5.0 Analysis of management issues: problem identification
There are 2 business problems that have been identified in FruiTea Time. One of the problems of Fruitea is failure to make profit, and the other problem of the business is high inventory left (64 of inventory left).
According to the cause and effect diagram, for the financial situation cause, the average unit price of FruiTea Time is too low and the breakeven is high. The unit price of FruiTea Time is just $10.53, which needs to be sold 220 units of product to achieve business breakeven.Reflective Report代写 The price of the FruiTea Time product should be higher, and it is not a good idea to set a high break even for a small business (Lewis, 2009).
Moreover, for the company analysis, FruiTea Time is lack of leader, the communication way in the company is between members, and there is a lack of motivation and sale skills of team member in the business. Reflective Report代写 As there is no certain leader in the company, the misunderstand information might be delivered in the company. There is no motivation in the company, and team members are not been motivated in FruiTea Time.
Employee motivation is important in the company due to the benefits that it brings to companies, such as increased employee commitment, ongoing employee development and improved employee satisfaction (Lindner, 1998).
Reflective Report代写 Additionally, For market system, an unattractive store decoration, not located at good stall, lack of strategic promotions, unprofitable price strategy are main reasons that causes FruiTea Time losing money and a high inventory left.
The unit price of the business is unprofitable, and the last half hour promotion of 50% off reduces the average unit price of the product. The appearance of products and the stall decoration is too simple without any attractive design. Stall design and decoration is important for a business to attract people (Moughtin & Tiesdell, 1999). Reflective Report代写 FruiTea Time is in the normal traffic area and the cost of the stall is $300.
The decoration of the store is going to show in appendix. According to Craig (2011), more colorful design of a stall attracts a new generation. The target customer of FruiTea Time are young females, therefore, the stall needs to design more colorful and attractive.
6.0 Statement and evaluation of alternatives
Two alternative solutions for each of the challenges will be discussed in this section. Reflective Report代写 The alternative solution should be evaluated by using following criteria such as reduce customer pain, easy to implement, minimal effect on marketing processes and speed to implement.
6.1 Pricing solution
The unit price of the product of FruiTea Time should be increased. The price is a value that will purchase a finite quantity, weight, or other measure of a good or service. 5cs (graph 3) of pricing strategy should be used to set the product price in alternative solution. Reflective Report代写 5cs pricing strategies should be used that including costs, company objectives, customers, channel members and competitors Krishnan, Bass& Jain, 1999).
The FruiTea Time need to consider the cost of the products, the selling price of products should cover the costs, in order to make profit, the price cannot be less than the costs. Moreover, The new price of FruiTea Time should be pricing to meet business objectives (Kienzler& Kowalkowski, 2017).Reflective Report代写 If the unit price of FruiTea Time is higher, the business objective of the business would be met. Set a price that customer are willing to pay is an other pricing strategy, FruiTea Time need to consider that how much that customer want to pay for products of fruit tea.
Customer would like to pay more than current price ($11) for fruit tea in the market. Competitors of FruiTea Time such as Dao Cha, Sip IT and TEA. EXP.
set higher average price than FruiTea Time for similar products. The pricing of FruiTea should be increased according competitor price comparison. Reflective Report代写 Therefore, the alternative solution of business problem is to increase the unit price of FruiTea Time. This alternative is easy to implement, small effect on marketing processes and quick to implement.
Graph 3: the 5c’s of pricing
6.2 Promotion solution
Moreover, the FruiTea Time should use promotion strategies to overcome the problem of inventory left. The personal selling skills of each team member should be improved for face-to-face selling. According to Doyle& Roth (1992), Personal selling requires the learning of new skills particularly in the areas of understanding customer needs and relationship development. Reflective Report代写 Each team member should know the product very well, and not afraid to introduce the product to target customer.
The personal selling skills are very important to develop trust in customer as our products are sold at psychical stall.
Moreover, Online communication needs to be considered to reach the target customer, and IMC can significantly improve the brand awareness of the customer (Mittal, 1994). Reflective Report代写 Most of the target customers in FruiTea Time are Generation Y, they share more things online than other generations, 89% of Generation Y own smartphones, and log in to the social network everyday Nahai (2013).
Creating business own website to promote the products is necessary (Wirtz, Schilke & Ullrich, 2003), creating FruiTea Time own website to promote product that complete with a contact form, social sharing buttons, a booking/availability calendar and a photo gallery is an alternative solution for reducing inventory left. Reflective Report代写 The brand awareness of FruiTea Time will be developed after creating a website and customers can find out more about product as well. This alternative reduces the customer pain significantly, it takes time to implement and the speed is slower than the alternative of increasing unit price.
7.0 Individual critical reflection
I putted many efforts to design, analysis and sell FruiTea Time product. In Qutopia 2019, our business loses profit after 2 market days. There are some aspects I did well, and also some aspects I need to improve in the future. I design the logo of FruiTea Time with my team members.Reflective Report代写 The product line of the business has been identified in the group, I gave my advice of what we going to sell in QuTopia market day. I recommended group members that it is a good idea to including Chinese Red Rose tea and we could buy it from TaoBao.
The material and costs of business reduced significantly when we decided to buy them on TaoBao.
My role in the group is a customer experience manager, my responsibility is to increase customer loyalty, improve customer experience and manage the relationship with customers.Reflective Report代写 I post moments on the business Facebook page to management the relationship of customers. I gave price discounts to same customer that return to buy our products repeatedly, which can increase the brand loyalty of customers.
However, as a customer experience manager, I forgot to write down that how many loyalty customers in FruiTea Time, and what are their favorite products. Reflective Report代写 Moreover, I am too shy in selling process. I need to improve my personal selling skills to enhance customer experience and their brand loyalty.
8.0Recommendations for future
8.1 Business recommendation
The alternative solution of increasing unit price should be implemented in the future. This alternative solution has been evaluated at high feasibility. It is easy to complete, and do not need to take much time to complete it. It would solve the business problem immediately.Reflective Report代写 Pricing the product of FruiTea Time should be consider by 5cs pricing strategy based on costs, business objectives, competitors, customers, and distribution channels. The increasing price of FruiTea Time would earn more profit and make the business more profitable.
The alternative of increasing the price is easier and quicker to complete than the promotion alternative that has been mentioned in section 6.2. Moreover, Increasing price of product will take less time to complete rather than building an official website for online communication. Reflective Report代写 The business profit would improve significantly. The last but not the least, change the price of the products minimal effects on other business processes, such as product, promotion and place. However, the other alternative solution would like to change the product and place of the business, it indicates more affects on marketing processes.
8.2 Personal recommendation
I have done many works in QuTopia 2019 for the team of FruiTea Time. Although our business lost profits after the market days, our team members putted efforts into our businesses. I contributed the group at product preparation, logo design, price setting and stall decoration etc. Reflective Report代写 However, there are still lots of things I should improve. The most important thing I should improve is increasing personal selling skills.
I should know the product and organize my language very well when I introduce our products to customer. It is not a good idea to be shy when I do face to face selling to customers. The most important thing to improve my selling skills is not afraid to speak to customer. Reflective Report代写 Moreover, I need to learn more about the consumer behaviors such as purchase motivation, decision-making and consumer attitude change etc.
9.0 References
Craig, J. (2011). Retailers on the inside track. Journal of Chian Store Age, 87 (8), 21.
Retrieved form https://search-proquest-com.ezp01.library.qut.edu.au/docview/1371446647?rfr_id=info%3Axri%2Fsid%3Aprimo
Doyle, S. Roth, G. (1992). Selling and sales management in action: The use of insight
Coaching to improve relationshio selling, The Journal of Personal Selling &Sales
Management, 12(1), 59-64. Retrieved from
https://www.tandfonline.com/action/showCitFormats?doi=10.1080%2F088531341992.10753898
Krishnan, T., Bass, F., &Jain, C. (1999). Optimal Pricing Strategy for new products.
The Journal of Management Science, 45(12), 1613-1727. Retrieved from
https://pubsonline.informs.org/doi/abs/10.1287/mnsc.45.12.1650
Kienzler, M., & Kowalkowki, C. (2017). Pricing strategy: A review of 22 years of
Marketing research. The Journal of Business Research, 78(2), 101-110.
Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0148296317301510
Linder, R. L. (1998). Understanding employee motivation. The journal of
Extension, 36(3). Retrieved from
https://www.joe.org/joe/1998june/rb3.php/nR:/journal-current-issue.php
Lewis, V. L. (2009). The five stage of small business growth. The Journal of Harvard
Business review, 61(3), 30-50. Retrieved from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1504517
Moughtin & Tiesdell (1999). Urban Design: Ornament and Decoration
p.28. rchitectural Press.
Mittal, B. (1994). Public assessment of TV advertising: faint praise and hars criticism. Advertising Research. Retrieved from
http://go.galegroup.com/ps/anonymous?id=GALE%7CA15352413&sid=googleS cholar&v=2.1&it=r&linkaccess=abs&issn=00218499&p=AONE&sw=w
Nahai, N. (2013). Generation Y & their charity giving habits. Give as you Live.
Retrieved from https://www.giveasyoulive.com/pdf/futurology.pdf
Wirta, B., Schike, O., Ullrich, S. (2010). Strategic development of business models:
Implications of the web 2.0 for creative value on internet. The Journal of
Long Planning, 43(2-3). 272-290. Retrieved from
https://www.sciencedirect.com/science/article/abs/pii/S0024630110000063
10.0 Appendices
Appendix1: Product
Appendix 2: Stall location
Appendix3: Decoration of store
Appendix 4: Facebook promotion
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