The paper "Unicorn Inns - Cash Forecasting " is a perfect example of a business assignment. The extract from the Newt and Cucumber plan is so informative because of the following reasons: The market segment is very specific which gives enough information about a particular marketing niche. The pub-chain is visited by all groups of customers which mean that each product serves a particular target group. The plan comprises the main marketing mix elements of product, price and place. According to Kotler (2008), this helps to reflect the wants and desires of the customers in the target market.
Convincing a market segment to buy something they want is very successful. Good mixing of these variables helps to meet the objective of the Inns. The timings of every market segment help to ensure that the firm is prepared to serve specific categories of customers and at what time of the day. This means the staff can adjust themselves in order to serve this target group to satisfaction. Case Question 2 If the plan works, it will achieve market segmentation. This is because the market has been divided into distinct groups of buyers who might require different and separate products and or marketing niches.
There are several benefits which accrue from this achievement; It may enable Unicorn Inns to select a potentially most profitable market segment. It will enable Unicorn Inns to concentrate resources for the chosen segment. The analysis will give Unicorn Inns the opportunity to review developments and anticipate changes in its chosen segment from competitive activity, legal and political changes. Sales opportunities are more likely to be effectively and fully exploited by staff when target customers are properly defined. Better services will be tailored to the needs of a particular market segment. Prices will be tailored to customers’ situations and circumstances (Horngren & Harrison, 2009). It may lead to an improved level of services both in terms of sophistication and general standards. By extension, market segmentation will assist in identifying the gaps since it involves marketing research and the marketer may also engage in the gap analysis.
A gap analysis will reveal the differences between what the market needs and wants and what is actually being supplied. Hence, a gap analysis will uncover market needs for existing services not fulfilled and other needs where no services currently exist. If the plan works, it will achieve good internal control.
An effective internal control system is characterized by the following factors Competent, reliable and ethical personnel Assignment of responsibilities Proper authorization Separation of duties. However, it should be noted that internal control systems have their own limitations. For instance, most internal control measures can be circumvented or overcome. Two or more employees can collude to work as a team with the aim of defrauding the pub-chain; hence defeat the purpose of the internal control measures. Marketing activities are at the heart of every business enterprise that has a profit objective.
A business that cannot record profit year in year out is at the danger of being insolvent. Many businesses fall because of stiff competition in the industry. This is mainly because they produce almost the same product (Godfrey, et al. , 2006). Therefore, promoting the brand, not only to customers but also to the trade is a critical success factor for Unicorn Inns. This is because the success of the business cannot be attributed to customers alone.
There are other stakeholders whose actions can impact on the business enterprise. Writing articles for the trade press will help in advertising the product at an international level. By this Chris Hutt will attract the attention of the global community, thereby attracting new customers for his products and services and increase brand loyalty amongst the existing customers. Notice that customers are very important stakeholders because they are the main reason why the business is set up. A loyal customer will always buy from Unicorn Inns and will make a repeat purchase.
On the other hand, if a customer switches from Unicorn Inns to another pub-chain, Unicorn is not sure whether that customer will come back – this means loss of business. His effort to get public relation especially when Unicorn won the multiple operators of the year award will help the business to be recognized internationally. This will be important in his exit strategy where he thinks of floating shares in the market. Many people would subscribe to Unicorn shares since it is a well-known company.
In addition, potential investors will determine the profitability of the inn before they decide to commit their resources to Unicorn.
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