Question1

1.1

Brainstorm and suggest potential market segments that Marius could consider when marketing the
products and services for the business.

Your answer should reflect your insight in combining different market segmentation bases to identify
possible different market segments. Your suggestions should include potential market segments form
the business-to-consumer (B2C) as well as the business-to-business (B2B) perspectives.

It is important to remember that retailers, wholesalers, or distributors are NOT automatically B2B
market segments. It is most often a distribution channel. When you suggest such potential market
segments, make 100% sure that they are B2B customers and NOT distribution channels for other
segments.

Marius need to understand the market segment that is the separation of buyer into group with
common need on product and who respond similar to the marketing action. In this regard we need
separate the markets to consider the market of this product or services. Furthermore, he needs to
know what is out objective and how are we going to implement the market segment we have
identify.

Brainstorm possible market segments for our product.

Business to Customer Business to Business

Demographic Firmographic
Is one of the segment that is identified as the most We will distribute our product in food industry,
important in this business because all his customer school, and university for feeding scheme. We
are around the world. Which means we need to go also identify the mining or large organisation as
on mass marketing of this product in terms of one of our potential customers because they
demographic. The reason for mass marketing is that
will need our product for feeding scheme.
this product its the human need and its categorised
intuitional food.
Restaurants and hotels its also identified as our
This Product its not separation items of marital customer because they will need our beans
status or gender. The 410g tinned will be distributed when they prepare for break-fast.
I all nation because all nation have house and family. • Industrial type
• Education • Number of employees
• Marital status • Revenue
• Religion • Market position
• Nationality
• Sales channel
• Gender
• Age
• Income
• Occupation

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901
 Geographic Geographic
Our product will be distributed in location as We will deal with restaurants, hotels and food
well as school, university, mining, and large process business any town, city because of the
company including location spaza shops and nature of our business which is basic need food
retail. Our product can survivor in urban and • Continent
rural location because its targeted human need • Country
which is food. • State
• • City
• Location • Town
• Urbanicity
• Climate
• Culture
• Language

Behavioural Behavioural
Most of our customer will be people from The business that are buying in bulk we need to
townships and location therefore have to sell the big like the food industries Hotels,
distribute our product in town, location store. school and large companies.

We also goner use the apps to reach the • How much they buy.
customs that prefer to use apps to buy their • Usage rate of product
product. Th business must establish a website • User status
to cater for those employees who want to • Attitude towards the product /services
check our product online.
• Store
• Website
• Application

Psychographic Psychographic
We also targeted the customer that value the We won’t consider in this product or services
health food because the product is canned because its complex to evaluate, however we
meaning the life of the product its fresh until have captured the business that we want.
you open and use it not more than two days.
Community they will use our product especial
during funeral and wedding where they cook
for mass community this includes school.
• Attitude
• Value
• Lifestyle
• Opinion
• Personality
• Motivation
• Interest
• Believe

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901
1.2 Recommend which specific market segments suggested in your answer to question 1.1 should be
targeted. Suggest at least two segments from the B2C and two segments from the B2B
environments. It is important to provide a motivation for the choice of each target market segment
that you recommend.

Marius we have define the market need and wants of our products the market large for our brand in
the current marketplace. Segmenting our marketing in demography, geography, behavioural and
physiographic it helps us to select the relevant segment towards our product. We now understanding
our market at larger, and we need running research surveys asking questions related to the chosen
segments. Creating the customer segments by analysing the response from the research to
determine which customer segments are relevant to our products or services. We also testing of the
organisation market strategy by interpretation the response. The following is recommendation:

Business to Customer Business to Business

Demographic Firmographic
Is one of the segments that is identified as the most We will distribute our product in food industry,
important in this business because all his customer school, and university for feeding scheme. We
are around the world. Which means we need to go also identify the mining or large organisation as
on mass marketing of this product in terms of one of our potential customers because they
demographic. The reason for mass marketing is that
will need our product for feeding scheme.
this product its the human need and its categorised
intuitional food.
Restaurants and hotels its also identified as our
This Product its not separation items of marital customer because they will need our beans
status or gender. The 410g tinned will be distributed when they prepare for break-fast.
I all nation because all nation have house and family. • Industrial type
• Education • Number of employees
• Marital status • Revenue
• Religion • Market position
• Nationality
• Sales channel
• Gender
• Age
• Income
• Occupation

Geographic Geographic
Our product will be distributed in location as We will deal with restaurants, hotels and food
well as school, university, mining, and large process business any town, city because of the
company including location spaza shops and nature of our business which is basic need food
retail. Our product can survivor in urban and • Continent
rural location because its targeted human need • Country
which is food. • State
• • City
• Location • Town
• Urbanicity
• Climate
• Culture
• Language

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901
Motivation are:

Demography:

Our demography will Increasing business resources efficiency which allows the manager to focus on
those segments. Because now managers know what is out targets and how he goner distribute the
product to them efficacy. Also this will allow our organisation to creating a strong brand image
massage directed to the specific customers because of our demographic identification which will
result in great potential of the brand quality whereby the customer will rely on the brand for long
time.

Geographic:

This will result in the stronger market differentiation of our brand by communicating specific to our
target because of the availability of our products to them. Our manager will have a better
understanding of our customer which will result in the advertising of our brand being channel to the
targeted customers. And this also promotes the better understanding of our customers need and
want which will put our business in competition advantage.

1.3 Explain what positioning statements could be used to create and support a distinct position in the
minds of customers in the 4 recommended target market segments.

Business to Customer Business to Business

Demographic Firmographic
Our product target does its include the below terms: We supply the below business with our
• Education product.
• Marital status • Industrial type
• Religion • Number of employees
• Nationality
• Market position
• Gender
• Sales channel
• Age
• Income
• Occupation
Which puts us on competitive market.
Geographic Geographic
Specific fucus will be covering the blow Our product will be distributed across
dimensions. • Continent
• Location • Country
• Urbanicity • State
• Climate • City
• Culture • Town
• Language

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901
1.4 Suggest at least 2 innovations for each of the recommended target market segments in your
answer to question 1.2. Briefly explain the suggested innovations and motivate why you think that it
could have impact on the value added to the market segments.

Innovation is the introduction of something new which will increase the cost of product like i-Phone
or lower the cost of product like HP which result in competitive advantage of product or services.

Incremental Innovation

I am suggesting incremental innovation as the first one because It’s the innovation that build on the
established knowledge based to steady improves an existing products or services offering. This
services that we innovation its been on the business for long time and people know about this
product or similar product of this kinds, however we suggest that the cover of our product need to
show the actual products clear and transparent with my result when you looking at our product you
must develop need to test this product furthermore it must show the protein and what you can mix
with in order to have create salad this will capture the healthy team of customers. For our product
to reduced risk and increased product diversification we need to use nationality advertisement which
are based on the specific targeted community for example community home language will be used
on adverts for that community and national we will used English expect those counters that English
its not their first language. Incremental innovation It’s promoted competitive and its lower the
innovation cost because the product it’s and have segments therefore when we innovate this it will
be like we are building on the existing product by adding the value which its not like when you start
from the bottom.

Architectural Innovation

For the second I suggest the architectural innovation because this product is known to the customer
therefore, we ned to add of technology on the product to create a market. We need to create a
smaller 200g tinned of baked beans for lower income community and 100g for students or kids to
cater for those customers who don’t have much income like informal settlement dwellers and
students. For example, Archer, Danon, tinned fish. Those products they have large, small and very
small product to accommodate those customers with lower income. In South Africa much population
have lower income like grants, pensioner, and unemployment this will help our product to grow in
community and can be affordable not by house holder but by individual to certify his need. Our
product components based on existing technology we will be reconfigured In an novel way to create
new markets.

1.5 Select one market segment from the B2C and one market segment from the B2B target markets
suggested in your answer to 1.3 to continue answering questions 1.5 and 1.6. Use the value chain
model (figure provided) to speculate on possible changes that the innovations could have in how
Marius should manage the value chain of the organisation. Discuss all the activities – primary- as well
as secondary/support activities.

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901
 Primary Activities
Recommendation Activities Business to Customer
Assuring that all the warehouses have enough
stoke terms available to produce our product.
Recommendation #1 Inbound logistics
Which are beans, tinned covering paper and
printing machines
Our machines are maintained and services
Recommendation #2 Operations regular to eliminates the breakdown that will
affect the business production.
Packaging and distributing to the community and
Recommendation #3 Outbound logistics other business its important and it must be done
in time. Time is important to this section.
Our product advertising need to be in the
language that is suitable for the specific targeted
community. HR Need to recruit a competence
Recommendation #4 Marketing and sales
skills marketing team with will result in better
marketing of our product with will lead to
increase demand of our product.
Our services employees must be given a better
training that will help them to deal with returns
issues of the new innovations and also they must
Recommendation #5 Services
insure that they do the best quality assurance
before the product goes to the customer which
will result in less returns
Support Activities
Recommendation Activities Business to Customer
Must be conducive and supporting to the
business especial when it comes to legal and
compliance of the business including the
affiliation of the company to the relevant
Recommendation #1 Firm Infrastructure legislator
Recruitment of the staff must be beneficially for
the company including the marketing team to
Recommendation #2 Human resource Management promote and advertised our product
Technology upgrading will assist the company in
term of the new product and will also cut cost on
the operation by implementing the process flow
Recommendation #3 Technological development of production into technology.
Purchasing of required resources such as the
building, materials, equipment must be accurate
and always must be original parts with the
Recommendation #4 Procurement guaranty to cut the business cost.

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901
 1.6 How will you measure the achievement of your suggested interventions? Use the balanced
scorecard as a point of reference for your answer. Use your knowledge of the application of the
balanced scorecard as a strategic management tool to select the two most appropriate perspectives
for your answer. Why do you use these two selected perspectives specifically? Motivate your choice.
Formulate two possible strategies for the two perspectives that you suggest should be used in the
balanced scorecard. State the critical success factors (CSF’s) for each strategy and develop a key
performance indicator (KPI) with a target for each CSF. For each KPI, indicate the action to be taken
when the target is not achieved.

Balanced Scorecard Measurement

Vision & CSF Action if Target
Perspective Weight Strategy (Objective) KPI (Objective) Target not Achieved
All the company
KPI are archived
actual we have
Customer satisfaction
exceeded in
scores.
perspective
Customer retention
Meeting however in the
rates.
Increase customer next financial
Customers 50 New customer 100%
Market Share expectation year we will
acquisition.
s. increase the
Market share.
weight to at list
On-time delivery.
80. The overall
Time to fill orders.
performance its
positive to our
customers.
All the
employees will
be re-train and
Amount spent on all the
employee training. promotion or
Employee satisfaction. recruitment will
Employee retention or consider
Improving turnover. internal first
Learning & Quality
80 innovation Hours of training. 90% before we bring
Growth Training
ability Number of new external
products employees. The
New product sales as a employees will
percent of total sales undergoes a
Number of patents change
management
process of those
new products.

Abraham Vusumuzi Sithole

Student Number:10371729
Module code: MBL 5901