Page 11 - CIMA OCS Workbook May 2019 - Day 1 Tasks

CIMA MAY 2019 – OPERATIONAL CASE STUDY

EXERCISE THREE (MARKETING)

Email
To: Melanie Tan
From: You
Date: Today
Subject: RE: Marketing

Marketing mix

The marketing mix represents the variables a company can change so as to meet customer needs
profitably and efficiently. The 4Ps model is a popular framework for discussing this.

Product

VitaMine manufactures high quality vitamins, minerals, herbal supplements and targeted care
products in three types of product format:
• capsules and tablets
• liquids, serums and sprays, and
• creams and gels.

There is scope to further increase the range of targeted care products, so they focus not only on
particular conditions but also on areas such as women’s health, men’s health, children’s health,
conception and pregnancy and even pain relief. Consideration could also be given to targeting
sports nutrition in terms of expanding the range. In light of recent trends showing society’s
increased efforts to live a healthier lifestyle, VitaMine could diversify into manufacturing products
such as protein drinks/ bars/ powders and creatine capsules which aim to build muscle mass,
boost strength and enhance exercise performance. Another idea could be pet vitamins,
promoting health and vitality, perhaps with a particular focus on pet joints and bones.

An alternative route could be taken in relation to labelling VitaMine’s products. We are seeing
internet retailers of vitamins, minerals and supplements taking great steps forward in terms of
providing more detailed information on product labels, including product benefits and wider
health advice. Due to an increase in enforcement actions in Eastland, we need to be particularly
careful to avoid making implied nutrient content claims or health benefit claims on our product
labels. However, if the results of our clinical tests to prove the efficacy of our products, then we
should go down this route. We could also give greater focus to allergen advice, not only stating
which allergens are included in the ingredients (as the law states we must do this) but we can also
highlight the products that are ‘free from’ e.g. vegan, gluten free, wheat free, milk free, sulphite
free in order to increase attention from allergy sufferers.

Price

We could give consideration to varying the price according to the number of items purchased, for
example an offer when purchasing any three products the lowest priced product will be free.

We could implement a scheme whereby customers can earn reward points and they could use
those points to get money off their next purchase e.g. 100 points = £1. It would have to be made
very clear as to how many points are rewarded for each product and that no points are rewarded
on free products, such as the third item in a three for two deal.

64 KAPLAN PUBLISHING