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Blitz updated assignment

International Marketing (Universiti Utara Malaysia)

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THE JOURNEY OF BLITZ: CHALLENGES LIE IN RUNNING THE FAMILY

BUSINESS

1.0 Case overview

This case about a woman faces taking on the running of her family business, Hema has no
previous experience in running a business as she graduated with a diploma in education and
is a teacher at the school. He had to continue his family business, Blitz company, which is
famous for its variety of pastries, snacks, traditional Indian cakes around Johor Bhary in
2010. Hema’s mother, Rani, was the founder of Blitz and after she was diagnosed with colon
cancer. The Blitz business began to face problems that Hema needed to overcome.

2.Issue and Challenge

Identify problems and challenges faced by a new manager in running a company; analyse a
situation whereby a new manager needs to adapt to a new role, duties and responsibilities.

When take over the business from her mother, Hema should made The Business Plan.

1)Sales and marketing Issues:

ii)Marketing Planning:

Marketing planning is a network of activities and the compilation of plans to achieve them.
Companies generally go through a management process in developing a marketing plan. In
small, non -diverse companies this process is usually informal and like Blitz. Blitz requires a
more systematic marketing plan to target more customers.

Compiling a marketing plan was the most difficult task for Blitz because its owner Hema had
no experience in the business. Compiling a marketing plan was the most difficult task for
Blitz because its owner Hema had no experience in the business.

ii)Declining Sales:

Blitz sales declined sharply, and the company did not take serious action on the issue.
Companies need to conduct marketing audits which are usually done by organizations in
situations of declining sales, falling margins, loss of market share etc. is a method of defining
problems accurately so that each problem can be addressed and eradicated.

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3. Situational Analysis

3.1 Internal Factor

S W O T

- traditional cookies - difficult for -Diversification of - Competitor

Blitz to apply for business
- These items were all - Seasonal work
bank loans
homemade -Innovative
- The rising cost of
-increase Marketing
- Blitz offered goody sugar
purchase raw strategies
bags in bulk for special
materials
occasions, parties, and -Improved
marriages -no staff benefits organisational
extra payment for strategies
- Blitz also offered free
OT
door-to-door delivery
within 20 km where the - lack of
journey was within 30 manpower
min
- no experience
about business

Strength

-there were not many shops producing Indian cookies

-offer a door-to-door delivery service

-receive many orders for her homemade cookies including a variety of pastries, snacks, cakes
and etc for different types of occasion such as Indian weddings, bangle ceremonies, birthday
celebrations and many more.

Weakness

-the challenge of getting a loan from the bank because Blitz was an enterprise
company and the banks preferred to provide loans to Sendirian Berhad companies.
Another reason was that Blitz did not make any significant profit after 2012, which made it
difficult for Blitz to apply for bank loans, as they failed to show a growth in profit. Thus, the
company struggled to have sufficient money to purchase raw materials, other supplies and
equipment. The increased price of raw materials (i.e. sugar and fuel) made it more difficult
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for Blitz to offer items at a lower price. This situation compelled Blitz to increase the price
of the products to cover the high expenses of raw materials.

- organization was not able to pay employees’ salaries for the extra work

- lack of manpower make that the late delivery of orders was one of the major issues in the
loss of customers

Opportunities

Blitz offered goody bags in bulk for special occasions, parties and marriages.
The amount and type of item (cookies) in the goody bags were decided by the customer,
and Blitz used to cater according to the customer’s requirements. Blitz also offered free
door-to-door delivery within 20 km where the journey was within 30 min.
To attract customers, Blitz promoted its products during special occasions such as
Deepavali, Ponggal, etc. During festivals, Rani offered quantity discounts to its customers
if they placed an order in bulk. Although Rani did not have any proper marketing training,
she tried her best to grow the business based on her own thoughts and ideas.

1) Diversification of business:

One of the opportunities is to diversify their business into fields other than pastries such as
selling drinks that can be included in the packages offered and also provide Indian food that
can be enjoyed by various races in Malaysia such as Malays and Chinese in addition to
achieving excellence in business. Their core is cookies including a variety of pastries,
snacks, cakes and etc. Diversity can help Blitz with increased profits and seasonal challenges.

2) Innovative Marketing strategies:

Blitz can come up with some innovative marketing ideas to lead the market such as: E-
marketing, offering discounts to its loyal customers and others. It can also improve its
customer service by providing home delivery options that can prove convenient for customers
who are busy with daily routines and can even overcome the threat of one-stop shopping.

3) Improved organisational strategies:

Blitz needs to implement training and outreach programs for employees that can help attract
more people to work, reduce employee turnover and will make the process more orderly.

4)Centralisation of operations:

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Decentralization This is a better opportunity than centralized because decentralization will

result in better customer service and locations in several counties will be able to help get
more customers and increase profits. In addition, these store managers should be given more
responsibilities and powers so that they can take decisions on issues related to a particular
store as needed and not have to rely on getting orders from the headquarters located in
Permas Jaya alone.

Threat

1) Competitor

MANGGALA is a competitor to Blitz as they produce traditional Indian cakes they also
market such traditional cakes, laddu, halwa, murukku and others. MANGGALAM has a
factory in Pasir Gudang and does not offer door -to -door delivery service like Blitz . But
MANGGALAM also has its own marketing team responsible for promoting the product
nationally and internationally through online and also using mass media such as THR radio
channel. Its products can be found in supermarkets such as Giant and Econsave.
MANGGLAAM also exports cookies to Singapore India restaurants and small shops and
includes seven major Indian restaurants in Johor Bahru.

2) Seasonal work :

Usually people consider to order the cookies when have ceremony such as Deepavali and
married event. Seasonal deals will be HUGE with this crowd, so plan your year to include
holiday menus and days to enjoy

3.2 External Factor

Blitz can used PESTEL analysis examines various external factors such as political,
economic, social, technological (PEST) that influence its business as well as legal &
environmental factors. The PESTLE analysis highlights a variety of extrinsic scenarios that
affect the brand’s business. PESTLE analysis is a very important framework for a company
like Blitz, as it helps understand market dynamics & continuously improve its business.

P E S T E L

-Political - Inflation Rate -cultural -Technology - Culture of -copyright and

stability barriers change and Corporate pattern law
-Unemployment awareness Social
-labour law rate -lifestyle Responsibilit - Consumer
attitude - Research and y Protection Laws
Development
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Investment
Levels

Politic

- Regulatory Practices - Regulatory practices are aligned with global norms that have helped
countries to increase the level of “ease of doing business”.

- Political System of Government - the country has a stable political system. Blitz is able to
create strategies based on a stable political environment.

Economic

-Employment Rate. If the employment rate is high then it will impact Blitz strategies in two
ways ,it will provide enough customers for Blitz products, and secondly it will make it
expensive for Blitz to hire talented & skilful employees.

- Inflation Rate - Inflation rate can affect the demand for Blitz products. For example the
price of sugar that often rises causing cost prices to have to be raised higher. It gives
disadvantages because customer loyalty will decrease.

Social

-cultural barriers

Product Blitz only focuses on Indians because it produces traditional biscuits for that group.

Technology

- Technology change and awareness – Blitz should assess the level of internet and mobile
phone penetration in the country as it will it in building a requisite business model based on
local needs and realities.

Research and Development Investment Levels – If there is high level of investment in

technology development sector then there are high chances of building a self-sustaining
ecosystem that drives innovation. Blitz can leverage such a situation to hire the best people in
business.

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- Culture of Corporate Social Responsibility - Does Blitz present CSR efforts that are
happening in new markets or is it necessary to have new initiatives to meet market prospects.

Legal

- copyright and pattern law - it speaks your way, helps stand out from the competition, makes
your business memorable, and builds loyalty and trust with your customers. A strong brand
identity for the Blitz cookie business may be possible such as consistent colour choices, using
a uniform writing style and tone, promoting memorable and unique slogans, developing logos
or visuals that show its purpose, or even using themes throughout all aspects of the business
(room, door to door, and digital).

- Consumer Protection Laws – Blitz needs to know what the consumer laws are, what is the
rate of enforcement, what is the attitude of authorities towards consumer protection laws, and
what is the role activist groups in enforcement of consumer protection laws.

4. Recommendation

4.1 Alternative strategies:

Benefits of a good marketing Plan

Blitz achieve higher rates of return on invested capital when they have:

 A clear business proposes

 A clear business objective

 An effective marketing mixes

A. Target Market(s)

i)Individual

The target market is the people who are best suited to your products and services. Hema
needs to expand its target market. These are people who are already out there looking for
items you should sell, and people who will gladly refer you to all of their like -minded friends
when they fall in love with a product from Blitz.

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When find a target market for Blitz, Hema can market desserts or drink sales to the right
people, at the right time, in a way that will feel appropriate for them. This makes marketing
feel less compelling and more fun.

ii)Caterer

Another target market for desserts is represented by food operators as these providers often
include dessert tables as part of their wedding services. Additionally, event planners who use
catering services can cover a large portion of your dessert target market. Blitz can promote
desserts to residential facilities where food is provided, such as food for the elderly or
children. Your target market could also include schools, hospitals or independent businesses
that accommodate canteen facilities.

iii) Health Food Segment

As more people are now healthier and less sweet in food, Blitz dessert operation was able to
increase its target market with the entry of the health food market. Organic products are
currently in demand, proving the increasing public interest in adopting a healthier lifestyle.
Organic desserts are still a relatively new concept and still in the growth stage. When people
are gradually attracted to desserts that have all natural and organic ingredients, sales will
increase. Therefore, health foods may be an ideal segment to boost your dessert target market

iv) Peripheral Targets

Your target market can increase a lot if you include 286 hotels in the new Johore area,
restaurants, and even stand -alone eateries. Food and delicacy markets can also occupy some
of your valuable dessert target markets, as can places with direct production.

B. Marketing Work

Once you know your target market, you can work on marketing. You know where to target
your marketing because you know where they hang out in real life and online. There is
nothing else but to take some amazing pictures and tell them where to find Blitz for example
via Facebook, Instagram, or website.

1) Marketing Mix

The marketing mix Principle are used by business as tools to assist in pursuing their
objectives. The marketing mix is a part of the organisation planning process and consists of
analysing the defined:

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Product ; Brand identity is how a business introduces itself to the rest of the world - it speaks
your way, helps stand out from the competition, makes your business memorable, and builds
loyalty and trust with your customers. A strong brand identity for the Blitz cookie business
may be possible such as consistent colour choices, using a uniform writing style and tone,
promoting memorable and unique slogans, developing logos or visuals that show its purpose,
or even using themes throughout all aspects of the business (room, door to door, and digital).

Currently, the following are the main categories of Blitz products:

• different flavours of cakes, cookies and snacks

• goody bags in bulk for special occasions, parties and marriages

Blitz value -added products:

• Package with drink such as tea Tarik or latte coffee

• packaging

Price ; Successful reputation and marketing generate more demand than we can handle, so
this allows us to charge lower fees for our products and services. We train experienced
employees and provide facilities to employees in case they need to work overtime to improve
our other services. We also have a customer loyalty program to reward our long -term
customers with better prices and provide coupons to first time customers as well as lower
prices compared to competitors namely Manggalam. We are also looking for partnerships
with 5 restaurants in Johor Bahru, small shops and at events or occasions for lower prices.
Rani offered quantity discounts to its customers if they placed an order in bulk. Although
Rani did not have any proper marketing training, she tried her best to grow the business
based on her own thoughts and ideas.

Place; The company has a home operation namely Permas Jaya. Blitz consistently sells door
to door, door gift and goody bags. Blitz needs to make the company’s Website the most
important communication tool, and is a place where our customers learn about our products
and services and make early contact. We plan to expand our website to include e-commerce
and provide several package and service services. accessories available for purchase online.
None of our competitors are doing this at the moment, so we will take advantage of being a
pioneer in this regard. Product distribution can also be expanded, ie it can be ordered and

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delivered through Food Panda or Grab Food. Both methods are very suitable to use because it
makes it easier for customers to order the food they are craving.

Promotion;Most new business comes through our website, and we focus all our promotion
efforts to drive more traffic to it. Our promotional mix is as follows:

 Search engine optimization

 Paid traffic
 Social media marketing
 Content marketing
 Email marketing

4.2 There are types of controls in marketing plan implementation

The essential types of marketing control are:

 control of the annual plan - performed by mid-level management (method: analysis of

sales, market share, financial indicators, etc.)
 control of profitability - performed by marketing controller (method: the profitability
of the product, area, customer segment, etc.)
 control of efficiency - performed by marketing executives, line managers and HR
departments (method: the effectiveness of the sales staff, advertising, sales,
promotion, distribution)
 strategic control - performed by top management or marketing auditor (method:
ranking of the effectiveness of marketing, marketing audit, evaluation of marketing
excellence, an overview of the ethical and social responsibility of the enterprise)

Problems with implementation and evaluation of effective control systems are often caused
by:

 high cost of implementation (IT software and hardware, data acquisition, human
costs),
 strict control may reduce motivation, decrease creativity and innovation.

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