Reflective Case Analysis

N9154507
AMB240 MARKETING
PLANNING AND
MANAGEMENT
Reflective Case Study
Word Count: 2748
Megan Hunter | n9154507
1.0 Table of Contents

2.0 Executive summary..................................................................................... 2
3.0 Summary of marketing outcomes.............................................................3
3.1 Marketing objectives..................................................................................... 3
3.2 Sales and production outcomes....................................................................3
3.3 Final Profit and Loss statement.....................................................................4
3.4 Market Share Calculations............................................................................ 5
4.0 Problems in the Marketing Management of the Campaign..................6
5.0 Problem Identification................................................................................8
5.1 Unsuitable Target Market.............................................................................. 8
5.2 Lack of Brand Awareness..............................................................................9
5.3 Supply and Demand................................................................................... 10
6.0 Statement and Evaluation of Alternatives............................................12
6.1 Unsuitable Target Market............................................................................ 12
6.1.1 Solution 1: Target Market Research and Analysis.................................12
6.1.2 Alternative 2: Differentiated Marketing Approach................................12
6.2 Lack of Brand Awareness............................................................................13
6.2.1 Solution 1: Social Media Usage.............................................................13
6.2.2 Solution 2: Partnerships or Sponsors....................................................13
6.3 Supply and Demand................................................................................... 14
6.3.1 Solution 1: Market Research.................................................................14
6.3.2 Solution 2: Trend Projection Method.....................................................14
6.4 Evaluation of Alternatives...........................................................................15
7.0 Recommendations for the Future...........................................................16
8.0 Appendices................................................................................................. 18
Appendix 1.0 Ratios.......................................................................................... 18
Appendix 2.0 Supply and Demand Curves........................................................19
Appendix 3.0 Break-Even Analysis...................................................................20
Appendix 4.0 Team Evaluation.........................................................................21
Appendix 5.0 Customer Feedback....................................................................22
Appendix 6.0 Market Stall Design.....................................................................22
Appendix 7.0 Customer Surveys.......................................................................23
Appendix 8.0 Consumption Patterns.................................................................24
Appendix 9.0 Customer Purchases...................................................................24
Appendix 10.0 Demand Forecast......................................................................25
9.0 Reference List............................................................................................ 26
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2.0 Executive summary

This reflective case study aims to assess and analyse the performance of
Decaf Designs during the QUTopia market simulation using marketing
theories. Decaf Designs offered custom-made prints in a range of sizes
(A4-A6) as well as origami-made wallets with bright patterns and designs.
Using the SMART framework, marketing objectives were formed before the
commencement of the QUTopian market simulation. Analysis of these
objectives found that only one out of the three were achieved. The
established objectives included:
1) Retain 30% customer loyalty (not achieved)

2) Achieve 30% profitability (not achieved)
3) Achieve 12% market share (achieved)
Although the market share of Decaf Designs was achieved to great

success (27%), the business was unable to attract the quantity of
consumers needed to increase their profit margins, as well as not
possessing the ability or incentive to retain their loyalty. The inability to
achieve customer loyalty and profitability objectives, amongst other
concerns, were attributed to three key problems. The problems identified
were an unsuitable target market, lack of brand awareness and supply
and demand forecasting.
These issues were evaluated and recommendations were proposed using

marketing theories. To appropriate establish a relevant target market,
Decaf Designs should use a differentiated marketing approach by
targeting multiple market segments and catering to their separate needs
with the business product ranges. Secondly, to increase brand awareness
it was suggested that social media (such as Facebook) be utilised to
increase reach and exposure of the business and its brand. Lastly, the
business should spend time to conduct research and analysis of their
market to more accurately predict levels of supply and demand.
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3.0 Summary of marketing outcomes

3.1 Marketing objectives
OBJECTIVES AIM OUTCOME ACHIEVED
Customer Loyalty 30% 18.75% No
Profitability 30% 1.09% No
Market Share 12% 27.26% Yes

T ABLE 1. MARKETING O BJECTIVES AND O UTCOMES
3.2 Sales and production outcomes

3.2.1 Sales price (per unit)
PRICE
ITEM MARKET DAY 1 MARKET DAY 2
Wallets $40 $50
A4 $35 $20
A5 $30 $15
A6 $25 $10
AVERAGE $32.5 $23.75
T ABLE 2. S ALES PRICE AND A VERAGES FOR BOTH MARKET D AYS
3.2.2 Total number of units produced

ITEM UNITS PRODUCED
Wallets 78
A4 36
A5 72
A6 88
TOTAL 274
T ABLE 3. TOTAL UNITS PRODUCED FOR EACH ITEM AND OVERALL
3.2.3 Total number of units sold

ITEM UNITS SOLD
Wallets 47
A4 1
A5 13
A6 12
TOTAL 73
T ABLE 4. TOTAL NUMBER OF UNITS SOLD FOR EACH ITEM AND OVERALL
3.2.4 Stock on hand (left-over inventory)

ITEM STOCK ON HAND
Wallets 31
A4 35
A5 59
A6 76
TOTAL 201
T ABLE 5. S TOCK ON HAND FOR EACH ITEM AND OVERALL
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3.3 Final Profit and Loss statement
F IGURE 1. PROFIT AND LOSS S TATEMENT FOR D ECAF D ESIGNS
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3.4 Market Share Calculations

Competitors identified Actual Competitors Difference
in marketing plan
Cardboard Collective Cardboard Collective No

Bent Bottles - Yes
Ants in your Plants Ants in your Plants No
- Urban Wrap Yes
T ABLE 6. COMPARISON OF IDENTIFIED AND ACTUAL C OMPETITORS
The competitors in Table 6 above were identified initially based off

industry code (G4279 Store-Based Retailing. They were then narrowed
down to the three businesses in question due to them satisfying the
consumer need or social convention of being environmentally friendly.
Table 7 below identifies the market share of the actual competitors to the
business as well as the business itself.
T ABLE 7. MARKET S HARE AND ANALYSIS OF ACTUAL C OMPETITORS
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4.0 Problems in the Marketing Management of the

Campaign
T ABLE 8: S UMMARY OF M ARKETING MANAGEMENT ISSUES
1. Financial Situation
Negative Positive
- Despite making a large number of - Decaf Designs was able to make a
sales, the business was profit (even if it was extremely
significantly under the profit target minimal) (Figure 1)
(Table 1) - The uniqueness of the product
- Demand for the prints were (wallets) and their ability to fulfil a
overestimated, while demand for consumer need (carrying QUTopian
wallets were underestimated, dollars) increased demand and
which led to less sales than consumers willingness to purchase
anticipated and a large amount of at higher prices (Appendix 2.1)
stock left on hand (Appendix 2.0) - The business had gained 1/3 more
- Breakeven forecast was inaccurate profit than what was initially
as the average price for goods was invested into the business (of actual
not anticipated to decrease $AUD) (Appendix 1.3)
meaning the business needed to
sell more goods than originally
estimated (Appendix 3.0)
- The business produced too much
stock for it to all be sold over the
two market days, therefore causing
a large amount of left-over
inventory (Appendix 1.1)
- The cost of making the products in
relation to revenue was too high
when measured against
benchmarks in the industry
(Appendix 1.2)
2.Company Analysis
Negative Positive
- There were some issues with - The team effectively used both
keeping track of documents and Facebook messages and a private
having updated versions on either Facebook group effectively to
Facebook or Google Drive leading discuss, brainstorm and divide
to unneeded confusion tasks, as well as scheduling
- Decision-making was not always meetings, etc.
done as a group, so lack of - Everyone in the group got along and
communication and collaboration communicated easily with each
in those aspects caused some other and were supportive and able
confusion and not everyone was to manage conflict effectively
informed all at once (Appendix 4.1) (Appendix 4.1)
- Not all team members were - The team worked effectively as
informed of certain requirements tasks were delegated fairly in
(i.e. items due after market day 1) accordance to individuals roles
which were needed on specific which provided a solid structure to
days, causing undue stress for a follow (Appendix 4.1)
brief period - Team members were strongly driven
or motivated and willing to put in
the extra effort to get tasks done
ahead of schedule so as to reduce
the stress of completing tasks to a
deadline
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3.Marketing System
Negative Positive
- There was a significant lack of - Improvements to both branding and
roaming sales with team members packaging were made on market
only keeping close by to the stall to day 2 which allowed for more
draw people in causing less brand customers to become aware of the
and product awareness business (and therefore make a
- Branding on market day 1 was purchase)
lacking which may have led to a - The stall purchased was effective as
lack of recognition or knowledge of it allowed us to have a clear front to
our brand and products to potential show off our products with a large
consumers amount of space for the rest of the
- Promotion and Product in the team to schmooze potential
market mix failed to take into customers walking past (Appendix
account the importance of 6.0)
branding and packaging with - Printing facilities and paper for all
minimal packing available on our designs and prints were supplied
market day 1 to us so the business didnt incur the
- The Facebook page was used only extra production costs
sparingly and didnt have - The theming of the products were
interaction or involvement with very popular with consumers
customers (Appendix 5.0)
- An online survey was posted on the
business Facebook page and did
not reach the audience numbers
the business was hoping for which
means it was difficult to use the
information gained for decision
making purposes (Appendix 7.0)
- The business was unable to match
production demand as some
products were overestimated
(prints) while other specific designs
(pokemon wallets) were
underestimated
- The business brand positioning
didnt align with why customers
purchased the products (more so
for functionality as opposed to
social value, i.e. environmentally
friendly) (Appendix 8.0)
4. Customer Analysis
Negative Positive
- Target market was not identified - Customers felt strongly about the
correctly and products were bought functionality value of the products
from a range of demographics and the unique designs were also
(largely males and all age ranges) very popular (Appendix 5.0 & 8.0)
- Demand for both wallets and prints - The market was not price sensitive
werent estimated correctly and to the wallets and therefore raising
therefore the business had a large the price did not decrease sales
amount of stock left on hand (Table (Appendix 2.1)
5)
- The market was price sensitive for
one category of the business
products (Appendix 2.2)
5. Competitor Analysis
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Negative Positive
- The business did not anticipate the - The company was a niche player as
effect that Urban Wrap would have our product was unique and catered
on our business when being placed to a specific consumer need which
next to our stall (Appendix 5.0) is what the business had intended
- Decaf Designs was the least (Appendix 5.0)
profitable of all our competitors - The business only had a few indirect
which is unfortunate as the competitors and for the majority
business was targeting a niche they were mostly different in their
market looking for sales over value proposition, therefore making
market share (Table 7) Decaf Designs less interchangeable
(Appendix 8.0)
- Decaf Designs market share was
fairly even amongst competitors
which means that customers were
shopping and spending as much at
the stall as much as at their
competitors (Table 7)
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5.0 Problem Identification

This section will discuss some of the main marketing issues or problems as
identified in the table above. It is important to analyse such issues in
order to understand what went wrong and to make improvements for the
future. The three key problems found were an unsuitable target market,
lack of brand awareness and supply and demand concerns. Marketing
theory will be used to reflect on the underlying causes and of each issue.
5.1 Unsuitable Target Market

Decaf Designs initial target market was labelled as the Single Shots
which consisted of females aged 18-22 years. This market was identified
and of focus due to the societal views of being environmentally friendly
and sustainable that the business initially tried to position themselves as.
A lot of the stall design and branding had been created focussing on this
theme and target market. However, due to the unexpected visitors to the
market days, sales reports indicated that the products were popular by
both males and females of all ages (Appendix 9.0). This caused
inconsistencies with the initial target market being catered to, and the
consumers which were purchasing the products.
F IGURE 2. FISHBONE D IAGRAM FOR PROBLEM 1
Identifying the correct target market with which to position your products
towards is a key marketing concept as it represents the foundation to a
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business advertising, branding and promotional strategies (Cromption,

1983; Slater, Hult and Olson, 2007). Correctly targeting the appropriate
market segement/s also reduces cost and resources as time wont be
wasted advertising towards consumers which wouldnt otherwise buy your
product (Amirani and Baker 1995). However, the business failed to identify
their correct market and doing so made problematic decisions such as
adding more designs to cater foremostly to females aged 18-22. By
making these decisions and targeting a market segment which the
product did not appeal to, this may have reduced the number of potential
sales Decaf Designs could have made by possibly losing out on a larger
market who would have been more willing to buy their products.
5.2 Lack of Brand Awareness

It was brought to the attention of Decaf Designs after market day one that
the branding and brand awareness were greatly lacking. Branding of the
logo and business name were positioned on a large banner strung up on a
metal frame at the back of the stall but was largely blocked by team
members serving behind the counter and therefore unable to be seen
clearly. In addition, the product packaging used was not themed in any
way with the positioning of the brand and had no branding or labels for
identification. There were no roaming salesmen around the market floor
and the business online prescence was very minimal. As a result,
consumers were unaware of the brand and the product being sold
(Apppendix 5.0).
F IGURE 3. FISHBONE D IAGRAM FOR PROBLEM 2
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Several studies indicate that branding and brand equity are key priorities
for most companies as they enable consumers to have an emotional
association with their brand allowing for closer relationships and increased
loyalty with customers (Haig, 2003; Ibeh, 2005; Keller, 2009). The Brand
Resonance Pyramid (Figure 4) indicates that in order to achieve high
brand equity, the foundations of brand identity and awareness must be
firmly established. Creating a brand that relates to consumers, that draws
meaning from and is identifiable by its logo, stall design, products, etc.
ensures the added intangible value creates a memorable association (Hall,
1999; Keller, 2009).
F IGURE 4. B RAND R ESONANCE PYRAMID (KELLER , 2009)
In the scenario of these market days, brand awareness alone (i.e.

knowledge of the brand) is sufficient to make sales, which requires
consumers to be able to recall or remember information about the brand
(Pitta and Katsanis, 1995). Therefore, it can be assumed that if Decaf
Designs had implemented either appropriate packaging with printed
logos, had a large sign of their logo in clear view or had roaming sales, the
awareness of their brand would have increased significantly (Figure 4).
5.3 Supply and Demand

Forecasted demand for the the business were overestimated for prints and
underestimated for certain wallet designs. Initial research using surveys
and census data indicated average demand for products to be 81 with an
average of 3 repeat purchases over the two market days (Appendix 10.0).
While this may have been a fairly accurate figure, the business failed to
take into account the different demands of each line of products (i.e.
Wallets vs. Prints). Specific wallet designs sold out extremely quickly on
market day one while barely any prints had been purchased. At the end of
both market days there was an abundance of prints remaining (62% of
items produced) and several popular wallets had once again sold out prior
to the end of market day two. Excess stock on hand and unknown or
incorrect demand figures can lead to missed sales (i.e. running out of
stock) or with perishable goods, large amounts of waste.
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F IGURE 5. F ISHBONE D IAGRAM FOR PROBLEM 3
Supply and demand forecasting is a complex and challenging task which

can be a large contributing factor in business gaining a competitive edge
(Lee, 2002). If stock is underestimated with customers unable to purchase
goods they may either backorder, or the business will suffer from
customer loss which can negatively impact the business and brand image
in the long run (Ho, Savin and Terwiesch, 2002). Therefore, it is important
to get the correct ratio of supply to demand to reduce the chances of
running out of stock which leads to additional stock production, delaying
revenue and increasing costs - or having too much stock on hand
incurring unnecessary expenses.
Forecasting demand for new products entering the market is even more
difficult, as predictions are generally made using historical data of
alternative products in a similar category or through extensive market
research (Chambers, Mullick and Smith, 1971). Therefore, if Decaf Designs
had utilised historial data forecasting techniques or delved into further
research they may have reduced demand uncertainty and consequently
avoided being both understocked on wallets and overstocked on prints.
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6.0 Statement and Evaluation of Alternatives
PROBLEM ALTERNATIVE SOLUTION

Spend more time to critically analyse and research
Unsuitable the appropriate target market for the product being
Target produced
Market Implement the Differentiated marketing approach
Use Facebook and Social Media proactively to form a

Lack of
more prominent brand image
Brand
Awareness Create Partnerships or gather Sponsors
Conduct more thorough research with larger sample

Supply and surveys and include product images and better
Demand gauge actual demand
Use the Trend Projection Method to calculate demand
T ABLE 8. EVALUATION OF A LTERNATIVE S OLUTIONS
6.1 Unsuitable Target Market

6.1.1 Solution 1: Target Market Research and Analysis
Advantages:
Conducting thorough market research can allow the business to uncover
more information about the intended target audience giving them a
greater understanding of their values, needs and wants, and potentially
how to cater to them (Green, 1991). This enables the business to alter
their products and marketing strategies if needed, in order to cater to
their intended target market. Critical analysis of target markets may
identify audiences and segments of potential consumers not previously
identified and reduces the risk of targeting the wrong market (Krampf and
Heinlein, 1981).
Disadvantages:
The research methods conducted in order to collect this data can be
costly, and require primary research of sizeable populations which can
also be time-consuming (McQueen and Miller, 1985). In addition, failure to
target secondary or multiple consumers can cause the business to lose
potential consumers and consequently potential sales.
6.1.2 Alternative 2: Differentiated Marketing Approach

Advantages:
Implementing this approach has the potential to increase sales volumes
and profit by catering to the different needs of consumers with the
different products produced (Brooksbank, 1996). The business will be able
to achieve economies of scale by mass producing each product to the
appropriate demand for each target segment. Targeting multiple target
markets can create several niche groups which reduces competition,
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builds brand loyalty and enables adaptability to changes in each individual

market (Chand, 2016; Dalgic and Leeuw, 1994).
Disadvantages:
The marketing and advertising messages may differ for each market
which may create an unclear or vague brand identity that could confuse
consumers (Chand, 2016). Growth potential is limited due to the smaller
target market, so it may be difficult to expand to larger audiences in the
future. It may also increase expenses due to increased production, design,
promotion, market research and management (Brooksbank, 1996). There
is also still the potential of targeting the wrong group once again.
6.2 Alternatives for Problem 2: Lack of Brand Awareness

6.2.1 Solution 1: Social Media Usage
Advantages:
According to recent statistics, there are over 1 billion active users on
Facebook with average time spent online being 20minutes which
increases the pool of the business target market (Zephoria, 2016). Online
advertising and consumer interactions allow businesses to gathering
important metrics determining the success or failure of certain campaigns
or techniques which can improve future decision making (Hoffman and
Fodor, 2010). Brand association can be strengthened through increased
exposure in an environment that is often highly relevant to both the
consumer and consequently the business target market (Hutter et al.,
2013). In addition, advertising and proactive use of a Facebook or Twitter
page is easy to implement and use, and cost effective (Hoffman and
Fodor, 2010).
Disadvantages:
Keller (2009) states that on social media, consumers define the rules of
engagement; meaning that they have the ability to ignore or avoid the
advertising and attempted interaction a business is putting out. It is easy
for businesses to get drowned out by the noise of thousands of other
competitors, as well as consumers slowly becoming desensitized to online
advertisements.
6.2.2 Solution 2: Partnerships or Sponsors

Advantages:
Partnering with pre-existing brands can allow the business access to
consumers already loyal and having pre-built relationships with the
partnered brand. This can enhance brand image and improve customer
attitudes towards the business through brand association of the partners
product quality, values, etc. (Friedman, 2016). The business can also save
on upfront costs if partnership or sponsorship provided includes free
materials or goods for production. In addition, studies show that a
business is more likely to be remembered in the long-term after being
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partnered with or sponsored by a well-known brand (Farrelly, Quester and

Greyser, 2006).
Disadvantages:
If the business doesnt choose or find an appropriate partner to join with,
this can lead to consumers assuming the partnership is not genuine
forming a negative view or opinion of both brands (Stuart, 1993). There is
also potential risk that consumers may only recognize one of the brands
linked in the partnership due to the clutter of advertising for both
businesses. Furthermore, expenses may be incurred if joint partnerships
require some form of payment through commissions, revenue share,
discounted prices, etc. (Farrelly, Quester and Greyser, 2006; Friedman,
2016).
6.3 Alternatives for Problem 3: Supply and Demand

6.3.1 Solution 1: Market Research
Advantages:
There are a wide variety of methods which can be used to collect
qualitative research from potential consumers and interested parties such
as surveys, panels, questionnaires and focus groups. It is one of the best
methods of forecasting new products entering the market as it reduces
uncertainty and can uncover greater understanding of consumer needs
and product development (Taylor, Bogdan and DeVault, 2015). In addition,
access to the internet gives businesses access to powerful tools which
enable them to connect and collect this information in real-time from a
wide array of potential consumers (Lee, 2002).
Disadvantages:
Chambers, Mullick and Smith (1971) identified these techniques as being
largely time-consuming and incurring significant costs. Furthermore,
qualitative data is generally subject to certain bias, can be easily
influenced and be subject to misinterpretation and prove difficult to
analyse (Taylor, Bogdan and DeVault, 2015).
6.3.2 Solution 2: Trend Projection Method

Advantages:
Trend projections can use multiple variations of mathematical trend lines
to suit the data when projecting into the future. Their most common use is
for new products entering a market as they are easily formed, come at low
cost and can be conducted without the need for expensive software or
tools (Brownstone and Train, 1998; Chambers, Mullick and Smith, 1971).
This method is most effective when used for predicting short-term
estimates.
Disadvantages:
Generally, to improve accuracy there needs to be significant amounts of
historical data or data can be sourced from businesses currently in
operation in the same industry but this may lead to further inaccuracies
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with product variances, quality, production cycles, etc. (Archer, 1980). The
method also has several limitations as it makes the assumption that all
external factors, influences, sales, etc. wont change and will have the
effect on past trends (Chambers, Mullick and Smith, 1971).
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6.4 Evaluation of Alternatives
Problem 1: Unsuitable Target Market
Problem 2: Lack of Brand Awareness
Problem 3: Supply and Demand
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7.0 Recommendations for the future
Problem 1: Unsuitable Target Market

Decaf Designs is recommended to undertake a differentiated marketing
approach when segmenting and determining their target audience. It is
suggested that they target two market segments in accordance with their
two differing products (prints and wallets). Alternatively, they could
segment their market depending on the designs and themes of each of
their products.
Differentiated marketing techniques allow for a greater reach of

audiences, by targeting several niche groups in order to increase brand
loyalty and reduce competitors (Chand, 2016; Dalgic and Leeuw, 1994). It
is a less risky approach than directly researching into one target group
which could isolate potential consumers and interest target markets,
which will consequently result in lost sales. This technique will allow the
business to continue production of both product ranges simultaneously
and achieve economies of scale (Chand, 2016).
Therefore, by implementing differentiated marketing Decaf Designs can

maximize their consumer reach and cater to multiple consumers and their
differing needs. This in turn can increase revenue and sales, while
improving brand awareness and increasing the business consumer base.
Problem 2: Lack of Brand Awareness

In order to improve and increase brand awareness, it is recommended
that Decaf Designs implement a Social Media campaign as well as
proactively engage with their audience. In addition to creating consistent
page posts, the business could invest into targeted advertisements if the
budget allows for it.
With Facebook becoming one of the most prominent advertising tools,

Decaf Designs will be able to easily increase their audience reach and
position themselves directly to their intended audience (Hoffman and
Fodor, 2010). Online marketing allows for greater flexibility and creativity
when designing ads and interacting with potential consumers this
improves brand loyalty and image through customizability to cater to the
niche markets (Hutter et al., 2013).
Therefore, by using online social media to the business advantage, Decaf

Designs can increase awareness through continued exposure through a
media channel with a large following and active user base at minimal cost.
Consequently, the business will be able to generate greater profit due to
an increased customer base (increasing sales) and improve their overall
brand image.
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Problem 3: Supply Demand

During the market simulation Decaf Designs ended with a large quantity
of stock remaining for most products, with a few specific product designs
sold out. As previously discussed, this was due to inaccuracies in supply
and demand. Therefore, to ensure this does not occur again in the future
it is recommended that the business conduct thorough market and
consumer research.
Predicting demand for new products entering a market has become an

increasingly difficult task to perform (Taylor, Bogdan and DeVault, 2015).
Therefore, it is important that sufficient time and resources are invested
into this procedure as it will ultimately benefit the business in the long-
run. Lee (2002) identifies the internet as extremely useful tool when
gathering information about consumers and target audiences and their
purchasing habits. This can improve the accuracy of forecasting which will
allow for more appropriate business and production decisions to be made.
Therefore, by using a combination of research techniques the business
can decrease the chances of overestimating and underestimating stock
demands, which will increase profit and reduce waste.
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8.0 Appendices
Appendix 1.0 Ratios
The following ratios were found using figures from the Profit and Loss
Statement (Figure 1). The ratio in Appendix 1.2 was compared to
benchmarks as detailed by the ATO. When comparing these benchmarks,
Decaf Designs was assumed to have an annual turnover of $65,000 -
$250,000 and in the category of discount and variety stores (homewares,
stationery, gift wares, etc.) (ATO, 2016a).
Appendix 1.1
Cost of Goods Sold
Stock Turnover Ratio = opening+ closing stock /2
1566
= 274 +201/2
= 6.59
The Stock Turnover Ratio indicates the number of times stock is sold and
replaced in a selected time period (e.g. annually) (Queensland
Government, 2016). The time it takes for stock to sell can be found by
dividing the stock turnover ratio by the number of days in the period (in
this case 2 days) (ATO, 2016b). Therefore, the time it is predicted to take
to sell all the stock on hand initially produced is:
6.59
2 = 3.295 days to sell all the stock on hand
Appendix 1.2
Cost of Goods Sold
Average Cost of Sales Ratio = Sales
1566
= 2535
= 61.78%
Benchmark for Average Cost of Sales Ratio = 49%
Appendix 1.3
Gain
Return on Investment (ROI) = ( InvestmentCost of Investment )
Cost of Investment
(2821)
= 21
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= 33%
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Appendix 2.0 Supply and Demand Curves

Appendix 2.1
GRAPH 1. D EMAND C URVE FOR WALLETS
Quantity Price
17 $40
30 $50
% change in price = 20%
% change in quantity = 43%
Appendix 2.2
GRAPH 2. D EMAND C URVE FOR PRINTS
Quantity Average
Price
3 $30
23 $15
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% change in price = -100%

% change in quantity = 87%
Appendix 3.0 Break-Even Analysis

Appendix 3.1 Forecasted Break-Even Analysis
Appendix 3.2 Actual Break-Even Analysis
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Appendix 4.0 Team Evaluation
SOURCE : (MINDT OOLS , 2016)
Appendix 4.1
Team Development Feedback
(Questions 1, 11) (Questions 2, 13)
Your score is 6 out of 10 Your score is 7 out of 10
Participation and Articulating Vision Managing Conflict

(Questions 3, 9, 10) (Questions 4, 12, 14)
Your score is 11 out of 15 Your score is 10 out of 15
Group Roles and Structure Team Member

Development
(Questions 6, 8, 15) (Questions 7)
Your score is 13 out of 15 Your score is 3 out
of 5
Understanding and Collaboration

(Questions 5)
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Your score is 3 out of 5
Appendix 5.0 Customer Feedback

Positives Negatives
- Because they were the only - Not interested in product
store that supplied batman and - Not interested in the product
robin themed items. - Not interested/not enough money
- I love pokemon and marvel... - Not my cup of tea
buying stuff here was - Not sure what their product was
necessary - Their products did not appeal to
- Needed to hold my money me
somehow - Unaware or uninterested in
- Promotional technique and a product.
practical element of the wallet - Wasn't interested
- Sponsored by them in return - Wasn't interested in product,
for our product didn't see value
- The sales guy won me over - weren't as cute as urban wrap
because he was so nice. I
bought the Pokemon design
because it appealed to my
sense of identity (Pokemon is
my life).
- The wallet was very cool
- their paper wallet really catch
my eyes, it is perfect to
separate the QUTopia money
from my wallet.
- They were visually appealing
and affordable
- unique, interesting product
- wallet; useful, unique
- Wanted somewhere to put my
QUTopian dollars
T ABLE 9. MARKET FEEDB ACK
___ = design/emotional ___ = functionality
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Appendix 6.0 Market Stall Design
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Appendix 7.0 Customer Surveys
F IGURE 6. O NLINE S URVEY R ESEARCH
28 | P a g e
Appendix 8.0 Consumption Patterns
F IGURE 7. C ONSUMPTION PATTERNS FOR D ECAF D ESIGNS AND C OMPETITORS
Appendix 9.0 Customer Purchases

MARK
ET MALES FEMALES
DAY
1 9 8
2 10 8
T ABLE 10. C USTOMER G ENDERS OF THOSE WHO PURCHASED ( NOT ALL PURCHASES
RECORDED )
29 | P a g e
Appendix 10.0 Demand Forecast

Details
Total QUTopia Census population is 296
market: 296
Product category indicates we have the potential to
Market potential:
sell our products to all QUTopians 296
Target market is young females and account for
Target Market:
57% of population 168
Product frequency Research indicates that consumers would purchase
per person: 3 products accross both MD 3
Estimated market Average marketshare from past performance
share: 16%
Sales projection: Number of units to be sold 81
T ABLE 11. D EMAND FORECAST BEFORE M ARKET D AY 1
30 | P a g e
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34 | P a g e

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1.0 Table of Contents

2.0 Executive summary

1) Retain 30% customer loyalty (not achieved)

Although the market share of Decaf Designs was achieved to great

These issues were evaluated and recommendations were proposed using

3.0 Summary of marketing outcomes

Customer Loyalty 30% 18.75% No

Profitability 30% 1.09% No

Market Share 12% 27.26% Yes

3.2 Sales and production outcomes

3.2.2 Total number of units produced

3.2.3 Total number of units sold

3.2.4 Stock on hand (left-over inventory)

3.3 Final Profit and Loss statement

F IGURE 1. PROFIT AND LOSS S TATEMENT FOR D ECAF D ESIGNS

3.4 Market Share Calculations

Cardboard Collective Cardboard Collective No

The competitors in Table 6 above were identified initially based off

T ABLE 7. MARKET S HARE AND ANALYSIS OF ACTUAL C OMPETITORS

4.0 Problems in the Marketing Management of the

5.0 Problem Identification

5.1 Unsuitable Target Market

F IGURE 2. FISHBONE D IAGRAM FOR PROBLEM 1

business advertising, branding and promotional strategies (Cromption,

5.2 Lack of Brand Awareness

F IGURE 3. FISHBONE D IAGRAM FOR PROBLEM 2

F IGURE 4. B RAND R ESONANCE PYRAMID (KELLER , 2009)

In the scenario of these market days, brand awareness alone (i.e.

5.3 Supply and Demand

F IGURE 5. F ISHBONE D IAGRAM FOR PROBLEM 3

Supply and demand forecasting is a complex and challenging task which

6.0 Statement and Evaluation of Alternatives

PROBLEM ALTERNATIVE SOLUTION

Use Facebook and Social Media proactively to form a

Conduct more thorough research with larger sample

6.1 Unsuitable Target Market

6.1.2 Alternative 2: Differentiated Marketing Approach

builds brand loyalty and enables adaptability to changes in each individual

6.2 Alternatives for Problem 2: Lack of Brand Awareness

6.2.2 Solution 2: Partnerships or Sponsors

partnered with or sponsored by a well-known brand (Farrelly, Quester and

6.3 Alternatives for Problem 3: Supply and Demand

6.3.2 Solution 2: Trend Projection Method

6.4 Evaluation of Alternatives

Problem 1: Unsuitable Target Market

Problem 2: Lack of Brand Awareness

Problem 3: Supply and Demand

7.0 Recommendations for the future

Problem 1: Unsuitable Target Market

Differentiated marketing techniques allow for a greater reach of

Therefore, by implementing differentiated marketing Decaf Designs can

Problem 2: Lack of Brand Awareness

With Facebook becoming one of the most prominent advertising tools,

Therefore, by using online social media to the business advantage, Decaf

Problem 3: Supply Demand

Predicting demand for new products entering a market has become an

Appendix 2.0 Supply and Demand Curves

GRAPH 1. D EMAND C URVE FOR WALLETS

GRAPH 2. D EMAND C URVE FOR PRINTS

% change in price = -100%

Appendix 3.0 Break-Even Analysis

Appendix 3.2 Actual Break-Even Analysis

_ = design/emotional _ = functionality