4.2 Marketing Planning (DP IB Business Management: SL): Exam Questions

Elite Escapes Travel is a boutique travel agency specialising in bespoke, luxury holiday packages. It recently launched a new service targeting high-income families, offering customised family-friendly itineraries that include exclusive experiences like private safaris and luxury villa stays.

As part of its marketing plan, Elite Escapes set a goal to increase bookings from high-income families by 25% over the next year. The agency segmented its market based on income level, family size, and lifestyle preferences, allowing it to target wealthy clients seeking unique travel experiences.

Elite Escapes positions itself as a premium provider on the market map, offering high-quality services at a premium price. However, competitors like Luxe Voyage are aggressively marketing similar experiences, creating challenges for Elite Escapes to stand out.

Elite Escapes Travel is a boutique travel agency specialising in bespoke, luxury holiday packages. It recently launched a new service targeting high-income families, offering customised family-friendly itineraries that include exclusive experiences like private safaris and luxury villa stays.

As part of its marketing plan, Elite Escapes set a goal to increase bookings from high-income families by 25% over the next year. The agency segmented its market based on income level, family size, and lifestyle preferences, allowing it to target wealthy clients seeking unique travel experiences.

Elite Escapes positions itself as a premium provider on the market map, offering high-quality services at a premium price. However, competitors like Luxe Voyage are aggressively marketing similar experiences, creating challenges for Elite Escapes to stand out.

Flavour Fest Catering specialises in providing diverse international cuisines for festivals and public events. Recently, the company began targeting niche markets by offering vegan and allergen-free menu options. As part of its marketing plan, Flavour Fest aims to achieve a 20% increase in bookings for health-conscious events over the next year.

The company uses segmentation to focus on festivals catering to health and wellness enthusiasts. It also conducted research on customer preferences, finding that most clients value menu diversity and eco-friendly packaging.

Flavour Fest Catering specialises in providing diverse international cuisines for festivals and public events. Recently, the company began targeting niche markets by offering vegan and allergen-free menu options. As part of its marketing plan, Flavour Fest aims to achieve a 20% increase in bookings for health-conscious events over the next year.

The company uses segmentation to focus on festivals catering to health and wellness enthusiasts. It also conducted research on customer preferences, finding that most clients value menu diversity and eco-friendly packaging.

HomeStyle Interiors is a family-owned business specialising in premium, customisable furniture. It recently launched a new line of eco-friendly furniture made from reclaimed wood. To promote the line, the company developed a marketing plan that includes objectives to increase market share by 10% in the next year and expand into urban markets with environmentally conscious customers.

HomeStyle identified its USP as “sustainable luxury” and positioned itself on a market map as offering high-quality furniture at a mid-range price. However, competitors in the same space are using aggressive pricing strategies, creating a challenge for HomeStyle to maintain its premium image while attracting new customers.

HomeStyle Interiors is a family-owned business specialising in premium, customisable furniture. It recently launched a new line of eco-friendly furniture made from reclaimed wood. To promote the line, the company developed a marketing plan that includes objectives to increase market share by 10% in the next year and expand into urban markets with environmentally conscious customers.

HomeStyle identified its USP as “sustainable luxury” and positioned itself on a market map as offering high-quality furniture at a mid-range price. However, competitors in the same space are using aggressive pricing strategies, creating a challenge for HomeStyle to maintain its premium image while attracting new customers.

EcoWave Cleaning Solutions is a company that makes eco-friendly cleaning products for households. It is well-known for its commitment to sustainability and creating products that are better for the environment than traditional cleaning products. EcoWave’s mission is “to clean homes and protect the planet”

The company is currently working on an ambitious new project. EcoWave is developing a biodegradable cleaning agent that can break down grease effectively without leaving harmful residues. This product is aimed at environmentally conscious customers who want safer, greener cleaning products. EcoWave believes the product could give the company a competitive edge in the growing market for sustainable cleaning solutions

Developing the product requires a significant investment. So far, EcoWave has spent $498,700 on research and development (R&D), including hiring scientists, creating prototypes and conducting tests. The company plans to launch the product within two years, but there are risks. If the product faces delays or additional testing requirements, costs could rise further

Cash flow over the next few months is a concern. A combination of high R&D spending, ongoing operating costs and annual loan repayments is putting pressure on the company’s finances. The finance manager has highlighted the need to prioritise solutions to manage cash flow effectively. While revenue from existing products, such as eco-friendly surface cleaners and laundry detergents, is stable, any unexpected increase in costs could lead to a shortfall

EcoWave’s marketing team is preparing a strategy to promote the biodegradable cleaning agent once it is ready for launch. Planned activities include social media campaigns, partnerships with eco-friendly retailers and in-store demonstrations. Market research shows that 65% of customers are willing to pay more for sustainable products but 30% are price-sensitive. The marketing team is working to create a pricing strategy that balances affordability with profitability

Despite these challenges, EcoWave’s management is optimistic. If the biodegradable cleaning agent is successful, it could strengthen EcoWave’s brand and help the company expand its share of the competitive eco-friendly cleaning products market

Table 1: Financial data (2023)

Table 2: Market research insights (2023)

Table 3: Extract from cash flow forecast (next six months)

Belvedere Event Management specialises in organising weddings, corporate events and festivals. Recently, the company expanded into luxury event planning to cater to high-income clients. This required a significant investment in marketing campaigns, recruitment of experienced staff and event management systems upgrades

Belvedere’s financial ratios reveal areas for improvement. The creditor days ratio has increased due to extended payment terms negotiated with suppliers, which has helped improve liquidity. However, the debtor days ratio has risen, as some corporate clients have delayed payments, putting pressure on cash flow. Additionally, the company’s return on capital employed has decreased, as recent investments in luxury services have yet to generate significant returns

To address these challenges, management is reviewing its credit control policies and considering offering discounts for early payments to improve debtor days. The company is also focused on its marketing strategy. In the competitive luxury events market, Belvedere plans to promote its unique selling points: bespoke planning services, partnerships with premium retailers and sustainability initiatives

Belvedere’s marketing plan includes objectives such as increasing brand awareness, boosting revenue by 15% within two years and improving customer retention. To achieve these goals, the company plans to focus on its target market of high-income clients through digital campaigns, collaborations with social media influencers and advertisements in luxury lifestyle magazines. Management has allocated an approximate budget of £150,000 to implement these strategies, which are expected to support revenue growth and position the company as a leader in the luxury events market

Table 1: Key financial ratios

Table 2: Marketing plan components