Marketing ManagementAE2

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Marketing Management
MKT 319
Report on ‘Kascade’
Unit title: Marketing Management
Unit Code: MKT 319
Unit Leader: Lesley Strachan
Level: 5
Assessment title: Report
Assessment number: AE2
Assessment type: Coursework Assessment
Student Name: Viktorija Kolosova
Student number: Q09854215

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Contents Page
Introduction ................................................................................... 3
Kascade vision, mission, values and corporate objectives.............................. 3
PESTLE ANALYSIS ............................................................................. 4
Market Research .............................................................................. 8
Competitor Research ........................................................................ 9
Customer Research.......................................................................... 10
SWOT Analysis ............................................................................... 11
Profit and Loss Forecast .................................................................... 12
Marketing Objectives ....................................................................... 13
SMART Objectives ........................................................................... 14
Marketing Strategies ........................................................................ 16
Marketing Programmes ..................................................................... 17
Control and Evaluation ..................................................................... 19
Conclusion.................................................................................... 22
References ................................................................................... 23
Appendices ................................................................................... 29

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Introduction
This report will outline the Kascade independent shop marketing management
side. Kascade is a new British brand established by two friends Mia Headland and
Viktorija Kolosova who set up their business in Southampton in 2013. They sell
raincoats, rubber boots and umbrellas for women, men and children. Kascade
garments are trendy available at competitive prices. The main aim of this brand is
making their customers’ rainy days more comfortable.
(Visualphotos 2013)
Kascade vision, mission, values and corporate objectives

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VISION STATEMENT
Kascade vision is to become the number one independent raincoats’, rubber boots’
and umbrellas’ retailer in the United Kingdom by providing quality products,
competitive pricing, and excellent customer service. Kascade seeks to make rainy
days fashionable for its customers.
MISSION STATEMENT
Kascade mission is to meet the needs of their customers in a positive and
enjoyable shopping experience by providing excellent customer service and to
share their Vision with all whom they come into contact.
VALUES
Commitment- Make a customer happy at all times.
Quality- Kascade offer a high quality and unique products to their customers.
Integrity- Working ethically and reliably.
Responsibility- Kascade is concerned about the environment hence all their
products are made from environment friendly materials.
CORPORATE OBJECTIVES
Table 1.1 Corporate Objectives of Kascade
Quantitative Philosophical Qualitative
 To increase earnings
pershare
 To offer customers
great quality
products at
affordable prices
 Increase customer
recognition and
satisfaction by being
innovative
 To double operating
profit
 To provide customers
with fashionable and
trendy products
 Invest in direct
marketing
 To boostsales by 10%
annually
 To build a
trustworthy brand
and be the best who
sells umbrellas,
raincoats and rubber
boots
 Expand by opening
more stores across
the country
(Brassington and Pettitt 2006, pp.1000-1005)
PESTLE ANALYSIS

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Table 2.1 PESTLE Analysis for Kascade
Political
 Tax policy
(Hm-treasury 2013)
 Wage regulations
(Businessstudiesonline
2013)
 Trading laws
(Gov 2013)
 Employability
regulations (Brebners
2012)
Economic
 Recession
(BBC 2013)
 Unemployment
(BBC 2012)
 Growing
inflation(BBC
2012)
 Increase in
interest rates
(Poulter 2012)
Socio-cultural
 Demographics
(Demographicsonli
ne 2011)
 Consumer buying
patterns (Keynote
2010)
 Lifestyle(Suttle
2012)
 Retail spending
(BBC 2013)
Technological
 Availability of
resources (Guardian
2012)
 Marketing tools
(Belam 2012)
 Production (Wicks
2012)
Legal/regulatory
 Health and safety
regulations (Hse
2013)
 Consumer
protection (Oft
2013)
 Copyrights (Mintel
2012)
 Current legislation
(Legislation 2013)
 Environmental
regulations
(Legislation 2013)
Environmental
 Waste and
recycling
(Defra 2012)
 Climate
(Barrie 2012)
 Raw materials
(Globalactionthro
ughfashion 2011)
(Brassington and Pettitt 2006, p.49)
Political:
Wage regulations are playing a big role in the business. Kascade is a new small
company who is dependant from the earnings of people. It is an opportunity for
the company to grow and increase profit if a minimum wage will increase which
means a consumer will have higher disposable income. Customers with higher
disposable income will come more often to the store and buy products.
Economic:

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The unemployment in the UK is growing. This year March 2013 unemployment rate
was 7.9%. It affects Kascade as it operates in the United Kingdom.
(Tradingeconomics 2013) Figure 2.1 shows the rate of unemployment in the United
Kingdom.
Figure 2.1 United Kingdom Unemployment Rate
(Tradingeconomics 2013)
According to this data, increased unemployment will have a negative impact on
the Kascade’s sales figures because consumers cannot afford to buy clothing as
much as if they would have a job. Figure 2.1 shows the unemployment rates in the
United Kingdom till March 2013.
Socio-cultural:
Retail spending has dropped in January 2013. Retail sales figures dropped for 0.6%
from December 2012. Therefore retail sales in March dropped by 0.7% comparing
to sales figures in February. (BBC 2013) Consumer spending on clothing is
disappointing for retailers as the sales figures are not as good as last year’s.
However, Kascade has an opportunity to attract customers by offering quality
products at competitive pricing.
Technological:
Marketing tools play a big role in communication with the loyal and potential
customers. Social media is very valuable and it is the most common way to spread
the information out. (Strugatz 2012) Kascade has an opportunity in using tools such
as Facebook page, where they can show all the latest available range in a very
stylish layout. Everyone can follow them on Twitter and on LinkedIn websites. It is
a good approach of building the brand awareness and it does not cost a lot of
money which is efficient for the business.
Legal/regulatory:

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Consumer protection is important and by doing this in a wrong way as a result it
can harm the brand’s reputation. Kascade need to make sure that their products
are without any defects and if happens that there are found some defects
customer can return it at any time. (Oft 2013)
Environmental:
Nowadays, waste and recycling are important matters. Kascade has to precede all
the recycling and wastage requirements. (Neal 2008) Kascade is trying to ensure
that all regulations are correctly followed. Kascade aim is to be an eco-friendly
company and try to avoid doing any actions what would harm the environment.

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Market Research
Market research is a vital part of any business that wants to sell products that are
aiming an attention and right targeted. A good market research can decrease risk
of the business failure. It helps the company better communicate with potential
and current customers whether the business meet all the expectations or not. Also
market research helps to determine opportunities such as potential evaluation of a
particular product and where marketing message needs to seek out a target. (Day
2005)
Market research report within SimVenture helped to select target segment; there
are six target segments altogether. It showed advantages of each segment, how
many potential customers each has also it helped to identify how much customers
are ready to pay at each segment.
Kascade after market research was conducted decided to go for Solo Businesses as
Solo Businesses work from home and price points are between £520 and £570. Solo
Businesses is with the higher market share. Later low quantity of orders showed
that there is a need of changing market segment so Kascade paid £300 to use a
consultant to do this research and after Kascade determined to choose
Corporations target segment with the most frequent orders and higher pricing
which are between £730 and £790.
Market research consultancy can do it for the business for a specific price, for
example, IRN Research Consultancy offers a flexible, effective research
consultancy service which provides the information to help making business
decisions. (Irn-research 2010)
To conclude, to do market research is an essential before thinking to starting the
business. A business idea can be very good on a piece of paper but until the
business does research market they will not know what customers think about the
product and are they ready to buy it at particular price.

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Competitor Research
Competitor research is important as it identifies how competitors are doing and
what threat they present to the business. A good understanding and knowledge of
competitors is essential for all businesses as it can help develop the business and
increasing market share. Also knowledge of why customers are going to
competitors the company can try improving their product and attracting
customers. A big advantage is that competitor research helps to find out
competitors’ price points and compare to own price points. (Inspiresme 2013)
Within SimVenture Kascade decided to pay £300 for using a consultant for
competition research. This research helped to identify competitors offered product
range and what designs the products are. According to received information
Kascade had changed the product design and stayed competitive in terms of
pricing to attract more customers to buy from them but not from competitors.
In conclusion, competitor research helps to examine what competitors are doing
well and what they are not doing that good and how it can be turned into Kascade
advantage. It tells who they target and what their pricing are. So it is fundamental
for the business to make sure they are fully aware of their competitors.

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Customer Research
Customer research will help to identify whether people are willing to buy the
product or not, or they prefer to go for the company’s competitors. It examines
what customers think about the product and its design. Moreover, this research
tells what price they are ready to pay and which target market the product most
appeal to and why. (Morebusiness 2009)
Customer research was undertaken by special consultant for £300. Kascade within
SimVenture had changed their product designs as customers were not satisfied
with it. Customer research also showed that customers were not happy with the
set price. After received results on a customer, Kascade changed pricing with the
purpose to increase interest in an offered product and boost sales. Also customer
research helps to investigate what marketing approaches should be used.
In conclusion, customer research helps a company identify if a customer was
satisfied with a product and if any changes need to be made in the design, pricing
or quality. The gained information allows a company to make a realistic marketing
plan or assess the achievement of its existing plan. If a company have a budget
better to pay for using a consultant for research, for instance Swift-Research
organisation offer to conduct customer research for businesses (Swift-research
2013), as it will be much more accurate than if it would done in-house.

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SWOT Analysis
Table 3.1 SWOT ANALYSIS FOR KASCADE
Strengths
 Unique Concept
 Wide range of sizes
 Eco-friendly
 High quality materials
 Multiple distribution channels
Weaknesses
 Competitors
 New Business
Opportunities
 Further expansion
 Increase in retail spending
 Celebrity endorsements
 Raise of minimum wage
 The United Kingdom leaves
recession
Threats
 Retailers with the similar
products’ range (Hunter-boot
2013)
 Increased taxation rates(Poulter
2012)
 Copyright (Mintel 2012)
 Recession (BBC 2013)
(Brassington and Pettit 2006, p.1007)
According to table 3.1 Kascade strengths and opportunities dominate over the
weaknesses and threats. Nevertheless, Kascade wants to avoid any possible threats
and weaknesses with building the outstanding brand which is trustworthy and
valued. To achieve this, Kascade will continue design unique clothing range, and
there is a possibility they will collaborate with a celebrity in purpose of reaching
new customer base and strengthen current customer loyalty.
With further expansion and using celebrity endorsements which make people being
aware of the brand, Kascade can achieve a higher percentage of sales figures in
the future. Moreover, Kascade will try to be an eco-friendly brand, which shows
how loyal they are to the planet.

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Profit and Loss Forecast
Table 4.1 Profit and Loss Forecast for Kascade
Table 4.1 shows profit and loss forecast for Kascade. As Kascade is a new business,
they have made a decision not to pay salary themselves for the first 10 months in
purpose of reducing costs. Sales quantities every month were increased as
Kascade every month have done marketing activities such as creating a website,
using direct marketing and advertising. For these activities Kascade decided
contribute more money every month as it helps to promote the product and
increase orders. Kascade operates in-house therefore there is no rent expenses.
According to this profit and loss forecast, Kascade by the end of December 2013
will make a profit of £380. Kascade is hoping to achieve this forecast or make the
year even more profitable.

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Marketing Objectives
Table 5.1 Marketing Objectives
1) Achieving market share growth or maintenance- by emphasising product
development and by improvement of performance, quality and features. It
also could be improved and achieved by sales effort, advertising or sales
promotion.
2) The maintenance or improvement of profitability- can be achieved by
increasing sales volume, by removing unprofitable activities, or by improving
prices such as raise price and using price differentiation. Either it can be
achieved through cutting costs, for instance, improve effectiveness of
marketing tools.
3) Establishing an opening market position- to enlarge the overall market by
increasing product innovation, or by increasing market innovation through
developing existing end-use markets or through discovering new end-use
markets.
4) Maximising cash flow and harvesting- can be achieved through reduction of
marketing expenditures on a brand, very often for the companies, which
have a decline in their popularity.
(Brassington and Pettit 2006, p.1010)
For Kascade will be implemented marketing objective such as achieving market
share growth or maintenance. As Kascade is a new business there is an opportunity
to grow and develop the business. By accentuating product features, for instance,
offering environmentally friendly products, it could attract various range
customers and increase company’s sales profit either market share growth. Also it
can be achieved by investing in advertising or sales promotion.
Moreover, Kascade can expand by finding new distributors, for example, some
sportswear retail stores. Before merging any companies Kascade has to investigate
it, what their target market is, how good they are operating their business, and
certainly find financial information on this particular brand to have a clear
overview of the company’s position.

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SMART Objectives
Table 5.2 SMART Objectives for Kascade
SMART OBJECTIVES
SPECIFIC- Kascade is going to achieve break-even point.
MEASURABLE- Break-even point is at £5472.
ACHIEVABLE- Based on research, the set objectives are achievable and obtainable.
REALISTIC- According to the research done, Kascade strongly believes that it is
realistic and can be accomplished.
TIME- Kascade is expecting to achieve break- even by the end of the trading year
one 31st December 2013.
(Learnmarketing 2012)
Kascade is a new Southampton UK based business with a budget of £10,000 which
foresees economic conditions and strives to remain challenging within competitive
environment. Kascade aim is achieving break-even point which is what volume of
sales needed to cover its costs. (Riley 2012) Kascade strongly believes that with
further development of a motivated team of sales and quality of their product
ranges they will achieve the set objective of not going over their budget of
£10,000 by the end of the trading year one 31st December 2013.

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Table 5.3 SMART Objectives for Kascade
SMART OBJECTIVES
SPECIFIC- To create £20,000 of profit.
MEASURABLE- To double operating profit.
ACHIEVABLE- Based on research the set objectives are achievable and obtainable.
REALISTIC- According to the research done, Kascade strongly believes that it is
realistic and can be accomplished.
TIME- Kascade is going to make profit of £20,000 by the end of fiscal year two 31st
December 2014.
(Learnmarketing 2012)
As Kascade is completed their first fiscal year their objective now is to achieve
profit of £20,000. Kascade goal is challenging the competitive environment by
remaining offering high quality products with unique features which are available
at reasonable prices. Moreover, to achieve the objective Kascade is going to attain
it through expansion, for example, by increasing sales premises in purpose of
enlarging stock level. This will give them an opportunity to enhance the brand
awareness and boost the sales figures. According to the research done, Kascade
strongly believes that the set objective is realistic which expected to be achieved
by the end of fiscal year two 31st December 2014.

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Marketing Strategies
Marketing strategies are:
Table 6.1 Marketing strategies
1. Reposition the product- aim is to make a brand divert a different
position, which is related to competing brands.
2. Improve product packaging- if there is a decrease in sales, a company
might change their packaging as it influences customers’ decision to
buy a product.
3. Alter prices- sometimes companies face situations when they need to
change their prices or respond to price changes by competitors to
stay competitive in the market.
4. Improve productivity- can be achieved through changing distribution
channels and marketing campaigns, increasing sales or lowering costs.
5. Standardise- by standardising the product, the company can achieve
cost effectiveness as in logistics as in manufacturing.
6. Change sales or customer mix- aim is to attract different customer
segments by offering something for every type of customer.
(Brassington and Pettit 2006, pp.1012-1013)
As Kascade aim is increase sales so the most beneficial marketing strategy for
Kascade would be improving productivity and it can be achieved in several ways
which are listed below.
To improve productivity by
 Merging sales teams- to improve communication and raise sales
 Adopting new technology- to remain competitive within the industry
 Changing the supplier- to increase efficiency of sales
For example, Timberland was the first shoe company who used Green Rubber. To
make it they adopted the new technology process DeLink. This process changes
scrap rubber to a recycled mix that can be reused in rubber products. (Timberland
2013)

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Marketing Programmes
A series of 6 planned marketing programmes
 Direct marketing
 Networking
 Website
 Public Relations
 Exhibitions and events
 Advertising
As the suggested marketing strategy is improving productivity, these 6 planned
marketing actions could be used in achieving this. Using various marketing tools
such as direct mail, networking, website, public relations, exhibitions, events and
advertising will help improving productivity of the company.
Enhancing the productivity of their existing operations can be achieved by direct
marketing. Direct marketing is the main interaction tool to build awareness of the
brand and attract more customers. Kascade have decided to run a direct marketing
campaign to attract new customers and remind existing customers of their
products. Direct marketing tool such as direct mail was used in purpose of
encouraging people. Direct mail designed for Kascade by a consultant was
distributed through the postal service to promote the product. RoyalMail.co.uk
offer full colour double-sided A5 postcard for 66p. Standard item which weight is
up to 20g will cost £63.50 per 1,000 items. (Royalmail 2013) Direct mail increased
Kascade’s orders hence sales so they have decided to run it every month.
Networking is important as it is a key for meeting new people, share information
and learn new skills from others how to run the business. Kascade have decided to
join the business club ‘Fabulous-women’ which took place every month in
Southampton for two hours. Kascade founders had a chance to discuss their
business and get some advice if needed. Monthly cost of membership was £15.
Moreover, there Kascade met men as this business club also accepted men; it
helped to promote their business to a wider audience. (Fabulous-women 2013) This
promotion tool worked for Kascade as every month, with the help of this business
club, increased number of people who was interested in product.
Kascade created premium website with their offered products’ ranges. Premium
website is important as Kascade’s business open to the market 24 hours 7 days per
week. Website works as a catalogue and keep it up-to-date is a cost effective. On
the website Kascade put links to drive a customer into social media networks such
as Facebook, Twitter and Linkedin. Kascade had a potential to be seen worldwide
and reach oversees customers. On the website a customer could find all the
needed information and find answers on their questions. Website worked for

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Kascade and helped increased order enquires, as many people nowadays find it
easier by ordering online. Hibubusiness.co.uk offer creating a premium website for
£22.99 per calendar month with unlimited bandwidth. (Businesshibu 2013) To make
a website more visible to others there are companies who offer SEO services, for
instance, ClickSubmit charges £37.49 for the first three months, then £49.99 for
another three months but thereafter no contract at all. (Clicksubmit 2013)
Kascade have chosen to release a public press statement with the topic ‘New start-
up company’ to spread information out about the business and their offered
products. It helped to catch customers’ attention and increase sales. The second
press release was published in purpose of informing people about the product
uniqueness and benefits over other companies’ products. One press release written
by special PR Company calls Press Dispensary (Pressdispensary 2013) plus
distribution will cost £260 altogether.
Kascade organised an event for promotion purposes and create media interest in
the company. Event was organised on a boat in Ocean Village in Southampton with
a dress code of Raincoats, rubber boots and accessory- umbrella. Kascade have
hired Events Angels Company to organise the event for them as Kascade wanted to
make sure everything is accurately planned and presented. Events Angels for full-
day of service charged £200 plus extra expenses such as food and beverages for
event visitors who were from the South Coast of England. (Eventsangels 2013) This
event helped attract new customers and boost sales through online network. As
organising an event is expensive, Kascade have decided not to organise them due
to lack of a budget.
Kascade have chosen to advertise about their company in a local paper as it suits
their financial situation and coherent with their target market. The second advert
was published in a Fashion Magazine which was repeated 1 month in purpose of
promotion and attracting customers. All the medium adverts were created by a
consultant. Newspapers’ and Fashion Magazine’s advertising is an efficient and
quick communication method with a large audience. It caught attention of many
new customers and make stronger relationship with loyal customers. Therefore it
helped increase the company’s productivity and sales figures. Southern Daily Echo
offer to put an advertisement for 3.70 for pscc and it is on Tuesday Lifestyle
perfect for Kascade. (Dailyecho 2013) Fashion magazine such as InStyle.com offer
publish an advert for $170,200 full page, half page for $110,700. (Instyle 2013)
Publishing in magazines is very expensive and for Kascade is not affordable way to
promote their brand.

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Control and Evaluation
Kascade’s one of the SMART objectives was to achieve break-even point by the end
of the first trading year 31 December 2013. Figure 8.1 shows Profit and Loss report
of the first trading year and according to this data, Kascade has not achieved its
set objective. Kascade presume that the objective has not been met due to
economical factors such as recession and decrease in retail spending. The United
Kingdom slipped into the recession again as economy dropped by 0.3% comparing
to previous year’s figures. (Allen 2013) During the recession time retail spending
falls so people tend to spend less as their disposable income is lower. (BBC 2013)
Kascade analysed profit and loss account and decided to change the product price
by making it a little bit higher. They increased price from £608 to £650 per unit
and they offered 5% of discount for 1 month to attract customers hence increase
orders. After the discount was offered orders took place but therefore after a
month when discount expired there were no orders at all. Then Kascade have
decided to change product design and publish a press release about the new
product design for purpose of promotion. As the product design has been changed
all distributor contracts were cancelled. All these changes were made to achieve
break-even point but Kascade achieved a break-even point straight after the first
trading year finished.
Figure 8.1 Profit and Loss Report for the Trading Year 1

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Figure 8.2 Profit and Loss Report for the Trading Year 2
The second SMART objective was to create £20,000 of profit by the end of the
trading year 2 31st December 2014. According to the figure 8.2 Kascade achieved
the set objective of making profit of 29,568 by the end of the trading year 2.
Kascade have signed all the legal requirements to hire staff along with Health and
Safety regulations. (Hse 2013) There was a need of a new member of staff as
owner’s efficiency went very low and could not complete all the tasks and satisfy
customers’ orders, as a result Kascade failed to complete all the production
planned for the months. Kascade advertised on a local paper to recruit new staff
for a part-time position. Southern Daily Echo offers to advertise a job advert at
Peak rate Thursday and Friday for £8.90 pscc. (Dailyecho 2013) The new member
of staff was sent to training course in sales for improving and strenghten exsiting
skills. Sales Training Courses organisation offer training in sales for £247 plus VAT.
(Salestrainingcourses 2013)
As all the production has not been completed Kascade bank balance went low and
they needed to apply for a bank loan of £10,000. Lloydstsb bank can lend money- if
it is £10,000 for 12 months with a 7.4% interest rate Kascade’s total payable
amount would be £10,394.52. (Lloydstsb 2013) Kascade received a bank loan and
could pay to its supplier on time. However, Kascade has decided to change the
supplier who supplies at a lower price and on a better contract arrangements for

21
decreasing costs purposes. FDS stands for Fashion design Solutions offer their
manufacturing services at very cost effective prices. All the needed information
will be provided by sending them an e-mail. (Fashiondesignsolutions 2013)
Due to a lot of hold stock Kascade moved to a larger premises 450square feet to
satisfy customers’ enquiries. Rightmove agents offer 450 square feet office space
to rent in the city centre of Southamtpon for 6,750 per annum. (Rightmove 2013)
The change of the trading space Kascade orders went up therefore sales figures
increased considerably. After increased sales and cash flowing Kascade hired a
bookkeeper. MazumaMoney offer to hire a bookkeeper at starting price of £60 plus
VAT for a limited company. (Mazumamoney 2013)
To increase sales Kascade completed direct marketing campaigns every month.
RoyalMail.co.uk offer full colour double-sided A5 postcard for 66p. Standard item
which weight is up to 20g will cost £63.50 per 1,000 items. (Royalmail 2013)
Kascade also published press releases. Press Dispensery special organisation who is
writing it for companies charges £260 which includes distribution. (Pressdispensery
2013)

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Conclusion
Kascade is a new business who strives to achieve a growth and profitability. The
first trading year was not very successful for the company and they did not meet
the set objective of achieving break-even point. Despite they still continued to
operate and the second year showed a crucial difference between those two
trading years. Kascade learnt a lot from the previous year’s mistakes and tried to
improve their sales figures. It was accomplished by advertising, direct marketing
campaigns, public relations and attending training courses. The second year
approved all the expectations as profit of £20,000 was achieved; the second SMART
objectives.

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