TandemCare (TC) provides bicycle repair subscriptions. TC wants to differentiate itself from competitors by offering a premium service package with faster collection and a longer warranty. The finance director has prepared estimated data for the first year of the premium package.

Harbor Harvest (HH) is a family-owned business that produces chilled seafood meals using fish bought from local boats. HH currently sells to independent delicatessens in one coastal region. Its customers are mainly higher-income adults who value freshness, traceability and supporting local suppliers. HH’s USP is “caught locally, cooked today”.

A national supermarket chain has offered HH shelf space in 120 stores if HH can reduce its price and standardize its packaging. The supermarket would give HH access to a much larger market, but HH would need to buy some fish from large wholesalers when local supply is low. The marketing director has prepared a new marketing plan that sets an objective to triple sales revenue within two years. Some employees are worried that this plan may weaken HH’s brand image and its relationship with existing customers.

PixelPlay (PP) is a small private limited company that develops educational video games for children aged 7 to 12. PP’s first game was popular with parents because it was safe, advertisement-free and linked to school topics. The business now faces increased competition from free game apps with in-game advertising.

PP’s marketing manager has identified two possible target markets for its next game. The first is parents who want safe learning activities at home. The second is primary schools that want classroom resources. PP has limited finance and only six employees. It is preparing a marketing plan that will include its target market, positioning, promotional activities, responsibilities, timetable and marketing budget.

The marketing manager believes PP should focus on parents and position the new game as a premium, safe home-learning product. The operations manager believes PP should focus on schools and position the game as a reliable classroom resource supported by teacher guides.

HavenBrew (HB) is a small private limited company operating three coffee shops in a coastal city. HB’s original marketing plan targeted tourists, using leaflets in hotels and a slogan, “the city’s traditional coffee experience”. However, tourist numbers have fallen and several low-priced coffee chains have opened near the harbour.

HB’s marketing manager has identified two possible target markets for next year’s marketing plan:

• Option 1: target local office workers with a mobile ordering app, loyalty discounts and faster service during morning and lunch periods.
• Option 2: continue targeting tourists but reposition HB as a premium local brand selling gift packs and coffee-tasting experiences.

HB’s directors want the marketing plan to improve sales revenue but also maintain HB’s image as an independent local business. Table 1 provides forecast marketing and sales data for the two options.

TrailNest (TN) designs and sells lightweight camping hammocks. TN currently sells only through specialist outdoor stores and its website. Its niche target market is experienced hikers who are willing to pay a high price for hammocks made from durable recycled fabric. TN’s unique selling point/proposition (USP) is “repairable outdoor gear for serious hikers”.

A national sports retailer has offered TN shelf space in all of its stores. To supply the retailer, TN would need to produce a cheaper mass-market hammock using less expensive fabric and simpler packaging. The retailer would heavily promote TN’s products, but TN would lose some control over how the brand is displayed in stores.

TN’s owners must decide whether to remain focused on the niche market or enter the mass market through the national retailer. Table 1 provides forecast data for the two options.

The listed selling price is the consumer price; TN receives this amount less the estimated retailer fee/margin for each unit sold. Treat the annual promotional cost as a fixed annual cost.

TrailBean (TB) is a medium-sized manufacturer of instant coffee for hikers and campers. Its products are sold online and in outdoor-equipment shops. TB differentiates itself through lightweight compostable packaging, strong coffee flavour and a subscription service that delivers coffee before customers’ planned trips. Its main competitors are cheaper supermarket coffee sachets and premium outdoor nutrition brands.

TB’s marketing team has prepared a position map using two variables: perceived sustainability and perceived convenience. The map shows TB positioned high on sustainability and medium-high on convenience. A premium outdoor nutrition brand is positioned close to TB but slightly higher on convenience. Supermarket sachets are positioned low on sustainability but high on convenience.

TB’s directors are considering a new marketing plan. Option A is to improve the subscription service with personalized trip reminders and faster delivery. Option B is to spend the same budget on advertising the compostable packaging more heavily. The finance director is concerned that competitors may copy either approach.

MedLite (ML) manufactures portable lamps for home medical care. Its customers include elderly people living at home, family carers and small healthcare providers. ML’s current product is reliable but is perceived as similar to several cheaper competitors. Sales growth has slowed and ML’s marketing director believes that ML must differentiate itself more clearly.

ML is considering two differentiation strategies:

• Strategy A: product differentiation by adding automatic fall-detection lighting, a longer battery life and a more modern design.
• Strategy B: service and relationship differentiation by offering installation visits, a telephone support line and subscription replacement of parts.

ML’s finance director is concerned that both strategies will require additional marketing expenditure and staff training. Table 1 provides forecast data for the two strategies and current competitor positioning.

All figures in Table 1 are forecasts for the same one-year period. Sales volume means the number of lamp packages sold; for Strategy B, it is the number of lamps sold with any associated service and replacement-part subscription, not the number of subscription renewals. The average selling price and variable cost are per lamp package and include all subscription revenue and service, support and replacement-part costs associated with that package. The marketing and training/development figures are the total costs for each option during the forecast period, rather than costs incremental to current ML; do not add any further revenue or costs.

GreenPlate Kitchen (GPK) - a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

GPK is a social enterprise in a large city. It cooks affordable lunches using surplus food collected from local farms and supermarkets. GPK employs and trains unemployed young adults. Any surplus is reinvested into free meal vouchers for families facing food insecurity. GPK plans to launch a paid subscription called the Neighbourhood Lunch Pass for office workers. The income from the Lunch Pass would subsidize more community meals.

Resource 2 — Extract from GPK's draft marketing plan

Resource 3 — Possible market segments for the Lunch Pass

Resource 4 — Quotation from the founder

'The Lunch Pass must not look like greenwashing. Customers need to understand that every paid lunch helps train a young person and fund meals for families.'

Resource 5 — Social media statistic

GPK has 31000 social media followers. Its most engaged post showed chefs turning surplus vegetables into lunches and achieved a 9.2% engagement rate. Analytics show that 68% of followers are aged 25 to 44.

TrailAble (TA) - a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

TA designs and sells adaptive backpacks and walking accessories for people with mobility difficulties. Its products are assembled by workers with disabilities, and surpluses fund inclusive hiking events. TA currently sells through physiotherapy clinics and specialist outdoor websites. A national outdoor retailer, PeakWay, has asked TA to supply a lower-priced Comfort Pack for its stores. TA's directors are unsure whether to remain focused on a niche market or move towards a more mass-market position.

Resource 2 — Estimated annual impact of two strategic options

Resource 3 — Customer perception information gathered from interviews

Resource 4 — Quotation from a TA customer

'I buy from TA because the staff understand disability and show me how to adjust the product. I would not want TA to become just another outdoor brand.'

Resource 5 — Social media statistic

TA has 14000 followers. A recent video showing disabled and non-disabled walkers using TA products together reached 260000 views. Of the viewers who clicked through to TA's website, 42% had not previously bought adaptive equipment.

BrightBridge Tech (BBT) - a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

BBT refurbishes donated laptops and sells certified low-cost devices to families, students and small charities. It also runs free digital-skills workshops. BBT's surpluses fund laptop donations to rural schools. Competition from low-priced online sellers has increased. BBT wants to launch a mobile refurbishment and advice hub that visits rural towns twice a month. The marketing director believes BBT must reposition itself from cheap refurbished laptops to trusted local technology support.

Resource 2 — Customer perception information for the refurbished laptop market

Resource 3 — Possible differentiation actions for the mobile hub

Resource 4 — Quotation from a rural school principal

'Families here need someone local and trusted. A cheap laptop from an unknown seller is not always a bargain if there is no help when it breaks.'

Resource 5 — Social media statistic

BBT has 8000 followers. Its short repair videos are shared at three times the rate of its price-discount posts. BBT also has 300 trained volunteers who could support advice sessions in rural towns.