Performance of Marketing Mix

Table of Contents




Product 4

Proposed Changes 4





This company is facing significant challenges from competition which is has sustained its level of attacks mainly from the fronts of price. As such, this company needs to device alternative competitive fonts. One strong proponent is online business which needs three main elements, online platforms (a website and a mobile app) and delivery infrastructure, and finally delivery employees. All these elements have been factored in the budget. The promotional strategies of the business need to be expanded to ensure that sales volumes are increased in the face of reducing prices to ensure that profit margins of the business remain at sustainable levels. 


16-17 ObjectiveActual Result @ 6 monthsComment
Revenue @$5,500,000Revenue @ $4,950,000 or 10% reductionSame number of units sold but at a lesser price
Profit @ 16%Profit@ 0% or BreakevenLower sell price but same quantity & costs
BBQ price @ $600/unitBBQ Avg Price @$540/unitCost remained the same as 2015/16 but the customer is now more price sensitive.
Customer SatisfactionNew Build – Customer Service = 90% essentialQtr Survey, 100% now rate  it as “Essential”Greater competition means ALL customers place more importance on customer service.
Customer SatisfactionNew Build – Australian Made = 80% importantQtr Survey. Only 10% say it is “Important”Australian made is no longer of major importance. 
Social Media not considered importantQtr Survey indicates young families – new builds – social media importantSocial media is becoming  a greater form of entertainment & communication
Distribution – online not a major avenueQtr Survey indicates, this is an important channel.E-Commerce is an important channel



Brew Ha Ha’s product element is of unwavering quality. The quality parameters is what has given the company the impetus to achieve its sales volume targets. Customers were responsive to the different coffee packs that were offered for take away by those willing to brew their coffee in their premises. However, competition has offered the same product to clients effectively offering a perfect ‘substitute’. To retain the competitiveness of the coffee beans, price had to be reviewed downwards, not because of reducing quality, but because of increasing competition. The foods and beverages offered in the store, coupled with the interior of the store proved to be sufficient magnets for clientele. On the flipside, just as above, competition reigned in on this market and forced product prices downwards. Through maintaining a strong social media brand, the community learnt about the products and was willing to sample. To ensure that our service in the store is raised to standard, our employees maintained a superior customer service which is a critical element in pushing the products to the consumers. 

Proposed Changes

Brew Ha Ha’s products are of impeccable quality but competition is also catching up. As such, competitors are offering customers with an alternative without sacrificing quality. Initially, food prices were planned to range between $A4.50 to $A17 while beverage prices were to range from $A3.80 to $A5.80 for an affogato. For an ice coffee/chocolate, the price was projected to rise slightly to $A6.50. In reality, however, market forces prompted the company to reduce its prices in a bid to maintain the sales volumes which were projected. This essentially means that revenue targets were not met despite having met the sales volume target because of the price differentials in products. In future, the store does not aim to engage in price wars with competitors since price wars are destructive. Other strategies will be employed to retain customers. 

To meet the sales volume target, the store was positioned at the right spot in a high pedestrian traffic. As such, the physical place element of the store is working for the advantage of the store. The online store needs more changes. Brew Ha Ha’s does not have to limit itself to Facebook only. The store will need a responsive and dynamic website and a mobile app where customers can order and review products. The propensity of doing deliveries to customers in nearby offices, who order online, should be piloted in a bid to shore up revenues. 

The promotional tactics of the business need to be improved to ensure that revenues increase through increasing sales volumes. To do this, a social media consultancy company should be engaged. Also mainstream media and use of other companies and institutions where clientele can be found need to be explored. Learning institutions, for instance, universities have a rich possibility of being of value to the company. 

The people factor in the store is great. Employees are well averse with their duties through continued training. More means of motivating employees are needed to ensure that they have renewed energy and determination of meeting customer needs. 


Budget ItemOriginal Budget $New Budget $Comments on Changes
Sales$11,000,00013,000,000Reducing prices are eating on revenue. Increase sales volumes to compensate for reducing prices
Investment$1,567,000$2,000,000Do a more responsive and dynamic website and a mobile app. Test if it is possible to deliver to clients who order online. 
COGs$5,890,000$6,000,000A slight increase in sales volumes 

Gross Profit$6,677,000$9,000,000
Wages$2,567,890$2,667,890Add a few employees to do deliveries
Consultancy$50,000$60,000Add social media consultancy
Marketing$800,000$1,000,000Increase marketing to increase sales and dominance
Capital Exp$120,000$200,000Acquire door to door delivery equipment
Office Supplies$65,068$65,068
Total Expenses$4,884,714$5,274,714
Net Profit$1,792,286$3,725,286A result of increased investment in capital capabilities, online presence, and new business model (delivery)


Performance Monitoring ActivityPerformance BenchmarkTiming/FrequencyResponsibility
Customer ServiceSurvey at each customer transaction100% with a rating above 4Every quarterMarketing Manager & ALL Customer Service
Sales volume Monitor sales records daily Sales volumes must increase by at least 5% every monthMonthly Sales manager/marketing manager/staff interacting with customers
Employee performanceMonitor employee professional performance through customer satisfactionEmployees must retain or improve their relations performance MonthlyHuman resource manager
Online ReachNumber of clicks in the website, actual online sales, and likes in social mediaThere should be an upward trajectory in online indicatorsMonthly Marketing manager
Product qualityRandom product tests Quality must pass the recommended threshold. Customer complaints must be at the bare minimumRandomQuality assurance maanger
Physical Safety Evaluation of occupation safety and hazards The score of an evaluation by an independent professional should remain static or improveBi-annualGeneral Manager


This review of past performance has revealed significant areas that need immediate changes. The market seems poised for a price war which according to Dufwenberg and Gneezy (2000) is detrimental to the success of any of the market players. As such, innovative ways to keep the company performing according to expectation is the only way out. As such, the company is considering investing in delivery services which will take advantage of the growing popularity of online shopping. To do this, the company needs to have in its possession a well-structured website that is tailored for online commerce. A mobile app that customers can use on their handheld devices needs to be put in place to ensure that there is convenience. The company needs to maintain an increasing pace of employee training to ensure that there is a continued increase in customer satisfaction, which is an element that determines customer loyalty in the industry. Promotional tactics need to be improved to ensure that there is an increase in the catchment area for the company. 

Name: Title: Date:



Dufwenberg, M., & Gneezy, U. (2000). Price competition and market concentration: an experimental study. international Journal of industrial Organization, 18(1), 7-22.

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