Khalid Jasir, Business Studies

8/2/2019 Khalid Jasir, Business Studies

1/19

Activity 3.9

The products are similar in each pair of photographs but they are designed to appeal to differentmarket segments. How do you think the market in each case has been segmented? What is the key

characteristic of each market segment?

Photograph 1-Crystal Cruises and adventure travel

What I see from the photograph, both of them have been segmented based on age. Evidence that

can prove these are photographs is the way the posters are displayed. Crystal cruises have old

people as their poster, while the other one have colourful design which show the spirit of teenagers.

Photograph 2-Heinz Baked Beam and TESCO

From the pair of photograph 2, I think the market in this case has been segmented based on

consumer lifestyle. The Heinz Baked having smaller size than the right side picture. I can say that the

Heinz product has been segmented to provide consumer needs which prefer something handy,

while the right one shows something bigger. So, those are things have been segmented based onpeople daily lifestyle.

Photograph 3-Family car and sport car

From the pictures, I can conclude that both photographs have been segmented by many ways. Those

are based on income, then lifestyle and the last based on socio-economy group. These photographs

are segmented based on income because it can be observed through the way people get the money


2/19

Canned Soft drinks

1. Brand names: Fizzy Soda 2. The image created: Great coke sensation3. How they are promoted: Advertisement and amount bonus4. The types of consumers likely to buy them: Teenagers

Teenage magazine

1. Brand names: Cheery magazine2. The image created: Teenage fun action3. How they are promoted: Advertisement and discount4. The types of consumers likely to buy them: Teenagers

Petroleum

1. Brand names: Eco-Oil2. The image created: Eco-friendly drilling firm3. How they are promoted: Advertisement and CSR(Corporate Social Responsibility)4. The types of consumers likely to buy them: Everyone who need oil or gasoline

Activity 3.11

D id th t t t !


3/19

Activity 3.12

Product Will demand belarger or smaller?

Will revenue riseor fall?

Is it elastic orinelastic?

Reason?

Bread Stationary The same Inelastic Because of

necessity

A washing

detergent

Smaller Fall Elastic Can change to

other product

Newspaper Stationary The same Inelastic Cost lower

Large flat screen

TV

Smaller Fall Elastic Expensive item

Boxes of matches Stationary The same Inelastic Low cost

Luxury holiday Smaller Fall Elastic Highly cost

Electric power Stationary The same Inelastic Necessity

Activity 3.13

1. What is price war?Price war is a condition where there is an intense competition among other businesses in which they

put their price below the competitors.

2. What motive do you think P&G had for cutting its prices?Motive that P&G had for cutting its price was done by increasing the volume of the product


4/19

An established mobile phone company with the largest share of the Chinese market faces

competition from a new smaller rival offering an existing new range of phones and call charge.

>Price wars, I prefer to choose this type of pricing because by this way I can make the other new

competitors to close its business.

A major supermarket chain has introduced a new, value brand range covering food, cosmetic and

cleaning products.

>Psycological pricing, because by this way people will be interested in buying the products.

A new eco-friendly washing-up liquid is launched in highly competitive market in which many brands

compete for market share.

>Penetration pricing, because by this way we can attract people to buy our products, then, when

they have felt the benefit it is not a problem if the price is increase.

A parish fashion house has introduced a new designer watch collection aimed at the rich, famousand glamorous.

>Psychological pricing, because by this way a firm can attract more buyer through a unique price

given.

A ti it 3 15


5/19

Last month spending in my house

Product(s) Place to buy Channel of distributionRice Market Channel 2, through retailer

Kitchen stuffs Market Channel 2, through retailer

Soap Market Channel 2, through retailer

Shampoo Market Channel 2, through retailer

Toothpaste Market Channel 2, through retailer

School stuffs Market Channel 2, through retailer

Fish Market Channel 2, through retailer

Activity 3.16

For these logos I could recognize them easily. The products they advertise are as follows:

Logo(s) Product(s) Image Created

Computer and other computer

supporting tools

Affordable products

Oil, gasoline and other

petroleum products

High quality oil

Service as online business Easiest way to have

transactions

Sport tools Good sport product


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Activity 3.17

From Television

Product(s) Target

Audience

Prime Time Off-Peak Mostly

Informative

Mostly

Persuade

Brand Image

Used

Slogan? Humour?

Pure Baby Mother with

baby

V V Fit to baby

body

- -

Quantum Housewife V V Safety, dont

leak

V -

Molto Housewife V V The cleanest

guardiance

V -

Saltcheese Kids-

Teenagers

V V Delicious

cheese waffle

V -

Hilo Teenagers V V Grow is going

up not to side

V -

Flexi Teenagers-Mid aged

people

V V Always canand efficient

V -

Pixy Teenagers-

Mid Aged

people

V V Make skin

smoother

V -

Scott

Emulsion

Kids V V Kid grow

healthy

V -

Pepsodent Kids V V Fixing our

teeth

V -

Smartfren Teenagers-

Mid Agedpeople

V V No way to

slow internet

V -

Anlene Old people V V Healthy

bones with

Anlene

V -


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MinuteMaid

Pulpy Orange

Teenagers-

Mid aged

people

V V Orange juice

with pulp

- -

Sprite Teenagers V V Freshing your

expressions

V -

Dermawan Mid Aged

people-Old

people

V V Back to be

young

V -

Pocari sweat Teenagers V V Replacing ion V -

Sunsilk Teenagers V V Reduce

dandruff

V -

Slai Olai Kid-

Teenagers

V V Cheering

your day

V -

Rinso Housewife V V Washing

efficiently

V -

IM3 Teenagers V V Having more

free chance

V -

Zinc Teenagers V V Without

dandruff

V -


8/19

From Newspaper

Adv 1 Adv 2 Adv 3 Adv 4 Adv 5

What it is advertising? BNI Taplus Bisnis ASTRA International Garuda Indonesia Blackberry Toyota Altis

Why did it grab your

attention?

It was put on the first

page

It was put with full-

page sized

It has unique picture Colourful with

elegant picture

It was put on the first page

What message it

contain?

Easy way to monitor

our transaction

A thanks to

indonesian people

Special price to

certain direction

Variety of Blackberry Easy way to have this car

What image does it use

or try to create?

Easy way to have

transaction

Having good

achievement

Low cost flight Variated type with

high technology

Having a car with low interest

Which market segment

or segments is it aimed

at?

Adult, Businessman Adult Adult Teen-Mid aged

people

Mid-aged people to adult


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Activity 3.18

Products The best way ReasonsA new pop music magazine for

young girl

Television, internet,

newspaper, sales incentive

and direct mail

We can use both above and

below promotions to have

better promotions. Another

reason is through this way

many young girl will be

attracted.

3D TV glasses Television and publicity Combining two of these will

better, because this is themost effective way

Furniture polished Furniture magazine, television

and personal selling

Not everyone use this

product, so, the best way is

using the best way that can be

connected to those who like

to buy the products.

A new pizza Television, radio, food

magazine, internet, publicity

and public relations

The reason is mostly people

know about food through this

way of promotions.

National sporting event Television, national

newspaper, radios, internet,

publicity and public relation

Through these way which are

many way, many of people

would know about the event.


10/19

Activity 3.19

At what stage in their life cycle are the products? The product of NIVEA which is NIVEA VISAGEYoung is on launching stage in their life cycle, while the product of Gonut with Donut which is a

donut is on growing stage in their life cycle.

What were the marketing objectives of the producers of each product? The marketing objectives of

the producers of each product are promoting new innovation of NIVEA which is NIVEA VISAGE and

improving the brand awareness of Gonut with Donut.

Briefly describe the main elements of the marketing strategy each producer was following? The main

element of the marketing strategy each producer was following is promotion which NIVEA has done

with their millions of sample and Facebooks helps to improve the awareness of Gonut with Donut.

Do you think the marketing objectives and strategies used in each case reflected the stage at which

each product was in its life cycle? Explain your answer! Yes, I do. The marketing objective and

strategies are reflecting the stage at which the product is. The marketing objective of NIVEA seems

that they tried to promote their product which is reflecting the product is on launching stage.

Meanwhile, the marketing objective of Gonut with Donut seems that they tried to improve their

sales which are at growing stage.

Were the marketing strategies cost effective? Use evidence from the case studies to justify your

answer! Actually, we cannot determine whether the way NIVEA has done is cost effective or not

because we do not know the result of their marketing strategies. However, the way using social

t ki hi h NIVEA l d i b t ff ti b it i th G t ith


11/19

Activity 3.22

Fixed cost Variable costTelephone charge Purchase of coffee, teas, milk and

sugars

Consumables Supplies of soft drinks

Wages of serving staffs Deliveries of cakes, biscuits and

pastries

Insurance premiums Electricity charge

Hire charges for equipment

Office stationery

Advertising cost

Computer maintenance contract

Bank loan repayment

Basic wages of office staff

Total cost : $ 81800 $38800

Activity 3.23

1.

Output Fixed cost Variable cost Total cost Total revenue Profit/loss

0 $50000 $0 $50000 $0 -$50000

10000 $50000 $25000 $75000 $50000 $25000


12/19

4.

Output Fixed cost Variable cost Total cost Total Revenue Profit/Loss$0 $50,000 $0 $50,000 $0 -$50,000

$10,000 $50,000 $40,000 $90,000 $50,000 -$40,000

$20,000 $50,000 $80,000 $130,000 $100,000 -$30,000

$30,000 $50,000 $120,000 $170,000 $150,000 -$20,000

$40,000 $50,000 $160,000 $210,000 $200,000 -$10,000

$50,000 $50,000 $200,000 $250,000 $250,000 $0

$60,000 $50,000 $240,000 $290,000 $300,000 $10,000

$50 000

$100,000

$150,000

$200,000

$250,000

$300,000$350,000

$400,000

$450,000

$500,000

Total cost

Total Revenue

Break even

L

Profit


13/19

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

Total cost

Total Revenue

Break even

Profit

Loss


14/19

Activity 3.24

1. Chamber of commerce complains of banks overcharging small businessIn this case, large business have a very big benefits, they could have product with lower prices than

the product from smaller business. The reasons are because the capital plays an important role in

production, which the smaller business is trapped by the overcharging.

2. Tech Group signs major contract to supply HinshuIn this case, large business has a good capital which comes with low interest, so, that they mightproduce more, while smaller business has not a good capital condition with high interest.

3. Government sets up information technology advice centre and website to help smallbusinesses.

Larger business can afford a specialist to advise them, while smaller business cannot, thats why the

way given by the government to avoid the failure of smaller businesses.

4. Larger business fare better than smaller ones during recessionLarger business had a cost advantages in case of pricing which they could sell with lower price, while

smaller business cannot, because they even cannot survive during the recession.


15/19

Activity 3.28

$ January February March April May June

Opening Balance (A) $0 $3,000 -$7,000 -$10,000 -$5,500 $0

Cash Inflows

Cash Sales $18,000 $18,000 $18,000

Credit Sales $10,000

New Capital Bank Loan $6,500

Savings $4,000

Total Cash Inflow (B) $10,500 $0 $10,000 $18,000 $18,000 $18,000

Cash Outflows

Wage and Salaries $6,500 $7,000 $8,000 $8,000 $8,000

Cash Purchase Equipment $5,000

Materials $2,000 $3,000 $3,000 $3,000 $3,000

Overhead Loan payment $1,000 $1,000 $1,000 $1,000 $1,000Rent $500 $500 $500 $500 $500 $500

Electricity $1,000 $1,200

Lease charges $800 $800

Insurance $1,200

Telephone $400 $300

Maintenace

Other $100 $200

Total Cash Outflows ( C ) $7,500 $10,000 $13,000 $13,500 $12,500 $14,000

Net cash flow (D) (= B-C) $3,000 -$10,000 -$3,000 $4,500 $5,500 $4,000

Closing balance (= A +D) $3,000 -$7,000 -$10,000 -$5,500 $0 $4,000


16/19

1. Thebusiness sells an additional $1000 of its plug-in devicesin April

The change in cash sales or additional $1000 causes the increase of

closing balance.

h b ll f l $

+$1000

+$1000

+$1000

+$800


17/19

3. Sales are $500 less than expected in May.When the sales in May is less than what we expected theclosing balance will be decrease also.

-$500

-$500

-$500

Instead of

continuing the

lease agreemenr

h


18/19

Activity 3.29

$ June July August September October November December

Opening Balance (A) $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Cash InflowsCash Sales $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Credit Sales

New Capital Bank Loan $1,000

Savings

Total Cash Inflow (B) $2,000 $3,000 $2,000 $2,000 $2,000 $2,000 $2,000

Cash Outflows

Wage and Salaries $800 $800 $800 $800 $800 $800 $800

Cash Purchase Materials $250 $250 $250 $250 $250 $250 $250

Overhead Loan payment $35 $35 $85 $85 $85 $85 $85

Rent for studio $75 $75 $75 $75 $75 $75 $75

Electricity $150 $150 150

Paints $25 $25 $25 $25 $25 $25 $25

Insurance $80 $80 80

Telephone $60 $60 60

Cleaner $20 $20 $20 $20 $20 $20 $20

Bus fare $18 $18 $18 $18 $18 $18 $18

Other $2,500

Total Cash Outflows ( C ) $1,513 $3,723 $1,273 $1,563 $1,273 $1,273 $1,563

Net cash flow (D) (= B-C) $487 -$723 $727 $437 $727 $727 $437Closing balance (= A +D) $1,987 $777 $2,227 $1,937 $2,227 $2,227 $1,937


19/19

Activity 3.30

Profit and loss account statement, year 1Turnover $240,000

Less cost of sales $150,000

Gross profit $90,000

Less overhead:

rent $21,000

electricity $10,000

telephone $5,000

insurance $1,500

stationery and postage $2,500

advertising $6,000

depreciation $4,000

$50,000

Net profit before tax $40,000

plus non-trading income $0

Profit before tax $40,000

Less corporation tax $8,000

Profit after tax $32,000

of which:

distributed profit $25,000retained profit $7,000

Profit and loss account statement, year 1

Turnover $300,000

Less cost of sales $180,000

Gross profit $120,000

Overhead $40,000

Net profit before tax $80,000

Profit before tax $80,000

Less corporation tax $8,000

Profit after tax $72,000

of which:

distributed profit $62,000retained profit $10,000

Documents

Khalid Jasir, Business Studies