MGT104 ASSIGNMENT 3

Activity Title:

Paper Number
and Title:

Assessed
Learning
Outcome:
3

Conditions:

Assignment 3

MGT104 Introduction to Applied Marketing

Level 5, 15 credits, Version 1
Outline how situational analysis is used to determine
appropriate promotional objectives and target market
with reference to relevant marketing theories and
modes.
This is a compulsory assignment. It must be
submitted and makes up 20% of your final result for
this paper.
The completed assignment is to be submitted to your
facilitator via Blackboard by the due date.
Any work of others such as articles, journals, the
internet or textbooks must be referenced following
the latest APA referencing guidelines.

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

ASSIGNMENT INSTRUCTIONS

Word count: 1000 1500 words excluding your referencing

For this assignment you will analyse the Lovely Linens Case Study and
answer the related questions. You will need to substantiate your findings
by referring to source materials including your textbook and Study Guide.
You are required to engage in some research into the theories
underpinning situational analysis and how it is used to determine
promotional objectives and target markets in order to successfully
complete this assignment.

The completion of a situational analysis is an essential part of a

marketing plan.
3.1 Using the Case Study Lovely Linens detail what a market analysis
involves and why we need to carry it out. Discuss the markets that Lovely
Linens are interested in pursuing and how they can analyse these
markets, including in your answer the various types of research that can
be conducted.
3.2 Complete an environmental analysis for Lovely Linens. Relate this to
the environment they are currently operating in, as well as they
environment they are looking to operate in. Make sure your answer
includes 2 valid points for each PESTLE element, with examples from
Lovely Linens.
3.3 What are 2 models we can use to carry out a competitor analysis?
Complete one of these for Lovely Linens. How can we use this analysis to
help determine our target market?
3.4 Market measurements are essential for situational analysis. Discuss 3
ways Lovely Linens can measure their performance in the marketplace
giving examples.
3.5 Discuss productivity and profitability analysis and give 2 examples
related to Lovely Linens operations.
3.6 Using the situational analysis information gathered in 3.1-3.5,
describe the target market of Lovely Linens and outline 3 promotional
objectives for Lovely Linens, including 2 different appropriate
promotional mix campaigns.

Make sure you reference all of your sources using the correct APA
referencing conventions.

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

Make sure you read the Marking Schedule below carefully before
embarking on the assignment. It will give you clear idea of what
we are looking for in the submission.

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

Case Study: Lovely Linens

Emma and Flossy have been operating a home-based business creating

linen from Emmas home in Invercargill since the start of the financial
year, 1st April 2004.
Emma was born and raised in Wellington. After leaving school she
embarked on a 10 year career in banking. She worked in many different
roles throughout the country. When she returned to Invercargill she met
Flossy through some bank colleagues.
At the age of 27 she decided it was time to see the world. She travelled to
many different countries over a period of a year before returning back
home to Invercargill. She decided to take up textile studies because she
always had an interest in needlework.
Flossy was born and raised in Invercargill. On completion of a marketing
degree from Lincoln University Flossy embarked on a 15 year career in
marketing for various businesses in the Invercargill region. During this
time she married and had two children. Two years passed and Flossy
began to feel tired of the corporate world of marketing. She looked for
something different to pursue and decided to take a 3 year diploma
course in textile design in Invercargill.
Over the three years of studying for their diplomas Emma and Flossy
became good friends.
Soon after Emma became frustrated with not being able to buy good
linen. She also remembered while travelling overseas the very poor
quality of linen. She came up with the idea of designing and making her
own linen and therefore gave up contract work at the bank to pursue this
exciting opportunity. Emma thought of Pacific Island designs for pillow
cases and showed them to family and friends who suggested she explore
the possibility of turning this idea into a business. Emmas banking
experience became useful as she started planning what would be
required for her to set up shop. Her bank retirement savings that had to
be cashed in on her resignation gave her the capital to invest in the
business.
Emma recognised that she would need some help so approached Flossy
about the idea. Soon after they formed a company called Lovely Linens.
It was a 50/50 shareholding. There were many things to consider such as
sourcing fabric at a good price, where they would operate from, who their
customers might be and so on. They decided to operate from Emmas
home as there was more room to work from. They found a local supplier
of high quality Egyptian cotton and durable ink for the motifs. Sample
pillow cases were made to show prospective customers. Family and
friends were very supportive of the venture and were more than willing to
purchase the linen.
MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version
1
Southern Institute of Technology 2015

Emma and Flossy approached a specialty department store with their

pillow cases with the view to perhaps selling a few sets. The store was
more than interested in their linen. They especially liked the unique
Pacific motifs and quality styles. This resulted in increases in demand.
They were somewhat taken back when they were asked to supply duvet
covers as their range was limited to pillow cases. Not wanting to miss an
opportunity they agreed, then quickly learnt how to design and make
duvets covers.
The accountant confirmed they were doing well at this early stage but
warned them to be careful as theres a high percentage of small
businesses that fail in the first two years of operation. The initial capital
investment of $20,000 was used to purchase industrial sewing machines,
fabric to make the linen and a computer system.
In the early days the business required a large amount of Emma and
Flossys time. Between them they were carrying out all the tasks from
designing linen, to sewing, to selling, to administration. This was taking
its toll on their respective family lives. They needed help with their
business planning so they went to Bizinfo. Bizinfo directed them to
Business Mentors New Zealand who put them in touch with a business
mentor who guided them through structuring and planning their
business. They took on a seamstress to do the sewing and an
administrator to attend to the accounting functions. This left Emma and
Flossy time to focus on design and marketing the business as well as time
to spend with their families. They also secured a grant from New Zealand
Trade and Enterprise for $3,000 to explore potential markets in Europe.
Flossy had some marketing contacts in Europe that were keen to assist
them with breaking into the European market.
In July 2005 they took up this offer of help and went to Europe to learn all
they needed to know about the market. Flossys contact, Darrin, was
based in Notting Hill and is experienced in breaking into the European
market. They spent two weeks with Darrin on a crash course learning all
they could. Whilst in London they approached the Liberty Linen Store in
Regent Street as a potential outlet to sell their linen. The store was
impressed and immediately placed an order with the promise of more in
the future.
The trip to Europe was such a success that Emma and Flossy felt a little
overwhelmed by it all. The orders were increasing with many of these
coming from Europe.
They had also secured the agency to supply paua shell buttons to various
designers. Recently they extended their range to include table linen. They
were also looking at how they might extend their New Zealand market to
other areas such as Wellington and Auckland.
By November 2005 the business was turning 100 metres of cotton into
bed linen per month. Projections for the next 6 months based on current
MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version
1
Southern Institute of Technology 2015

orders was an increase to an average of 150 metres per month. Whilst

operating the business from Emmas home has worked well, there have
been a few tense moments among the staff and partners when working to
very tight deadlines. It is inevitable that more staff will need to be taken
on to meet the orders. They high NZ dollar is also impacting on costs. The
option to manufacture their products in Asia is becoming more attractive
to the bottom line. Emmas home is struggling to accommodate the
increased business. Emma has researched an option to move to a small
fully equipped workshop/retail outlet on the fringes on the CBD. This
would give the business a higher profile and a central point to meet with
customers etc. Whilst they have not experienced any cash flow difficulties
to date this may not be the case in the future with the anticipated growth.
They may need to consider investing additional cash to fund the growth.
Emma and Flossy had completed a business plan when they formalised
the business set up. They had also engaged the services of professionals
as and when they required. It was apparent that revisiting the plan was
required to enable them to focus on the current production and the future
direction of the business. They are at a stage where they would like to
push sales to a maximum to get them settled in the new business
premises with the high rental costs and take on further staff so they can
both make more use of their specialist areas. That is, Flossy as Marketing
Manager and Emma taking over as Production Manager. With the spare
time they have they need to thoroughly review the market so they can
align their resources best where needed to continue being a success in
the future.

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

Marking schedule
Criteria

E (0-39)

D (40-49)

C (50-64)

B (65-79)

A (80-100)

Market
Analysis

Clear
evidence of
lack of
understanding
, fails to
identify
components
of market
analysis
theory or
research
procedures.

Poor
understanding
of market
analysis
theory.
Evaluation is
shallow and
fails to
identify
complete
procedures
for market
research.

Reasonable
evaluation of
market
analysis
theory,
including
various
methods to
analyse a
market, and
listing market
research
procedures.

Exceptional,
insightful and
comprehensive
evaluation of
market analysis
theory, including
details of various
methods to analyse
a market, and
detailing market
research
procedures.

Weak analysis
of markets
and lack of
understanding
of link to Case
study.

Reasonable
analysis of at
least 2
markets
relating to the
Case study,
showing
evidence of
basic
understanding
.

Thorough and
comprehensive
evaluation of
market analysis
theory,
including
details of
various
methods to
analyse a
market, and
detailing
market
research
procedures.

Weighting
12%

Lack of
knowledge of
markets and
poor
understanding
of Case Study
application.
Unconvincing
evaluation.

Environm
ental
Analysis
Weighting
12%

Clear
evidence of
lack of
understanding
, fails to
identify
components
of
environmental
analysis.
Lack of
knowledge of
theory and
poor
understanding
of Case Study
application.
Unconvincing
evaluation
and poor

Lack of
research.

Poor
understanding
of
environmental
analysis. Lack
of detail of
current or
future
environments.
Weak
evaluation
and
incomplete
examples.
Lack of
research.

Sound analysis
of at least 2
markets
relating to the
Case study,
showing
evidence of
good
understanding.

Some
research
carried out
beyond course
materials.

Research
carried out
beyond course
materials.

Competent
environmental
analysis,
including
details of
current and
future
environments.

Thorough and
comprehensive
environmental
analysis,
including
details of
current and
future
environments.

Reasonable
evaluation of
at least 1
point for each
PESTLE
element
including
examples
from Case
Study.
Some
research

Sound
evaluation of at
least 2 detailed
points for each
PESTLE
element
including
original and
detailed
examples from
Case Study.

High level analysis

of at least 2
markets relating to
the Case study,
showing evidence
of exceptional
understanding.
In-depth research
carried out beyond
course materials.

Exceptional,
insightful and
comprehensive
environmental
analysis, including
details of current
and future
environments.
Extremely high
level of
understanding is
shown by
evaluation of at
least 2 detailed
points for each
PESTLE element
including original
and insightful
examples from
Case Study.

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

examples.

Competito
r Analysis
Weighting
12%

Clear
evidence of
lack of
understanding
, fails to
identify
theoretical
models.

Poor
understanding
of models of
competitor
analysis. Lack
of detail or
link to Case
Study.

Lack of
knowledge of
theory and
poor
understanding
of Case Study
application.

Weak
evaluation
and lack of
understanding
of purpose of
analysis and
link to target
market.

Unconvincing
evaluation
and poor
examples.

Market
Measure
ments
Weighting
12%

Clear
evidence of
lack of
understanding
, fails to
identify
market
measurement
s.
Lack of
knowledge of
theory and
poor
understanding
of Case Study
application.
Unconvincing
evaluation
and poor
examples.

Lack of
research.

carried out
beyond course
materials.

Research
carried out
beyond course
materials.

In-depth research
carried out beyond
course materials.

Competent
description of
models, and
reasonable
application of
model to Case
Study.

Thorough and
comprehensive
description of
models, and
detailed
application of
model to Case
Study.

Exceptional,
insightful and
comprehensive
description of
models, and
detailed
application of
model to Case
Study.

Reasonable
evaluation of
purpose of
analysis and
link to
determination
of target
market.
Some
research
carried out
beyond course
materials.

Sound
evaluation of
purpose of
analysis and
link to
determination
of target
market.

Extremely high
level of
understanding is
shown of purpose
of analysis and link
to determination of
target market.

Research
carried out
beyond course
materials.

In-depth research
carried out beyond
course materials.

Lack of
understanding
of market
measurement
s.

Competent
description of
market
measurement
s.

Thorough and
comprehensive
description of
market
measurements.

Exceptional and
comprehensive
description of
market
measurements.

Poor
comprehensio
n is
demonstrated
in Case Study
application.

Reasonable
level of
understanding
is
demonstrated
by application
to Case Study
giving 3
methods with
relevant
examples.

Very good level

of
understanding
is demonstrated
by detailed
application to
Case Study
giving 3
methods with
excellent
examples.

Extremely high
level of
understanding is
demonstrated by
detailed
application to Case
Study giving 3
methods with
creative and
insightful
examples.

Some
research
carried out
beyond course
materials.

Research
carried out
beyond course
materials.

In-depth research
carried out beyond
course materials.

Less than 3
methods with
incomplete
and weak
examples.

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

Productivi
ty/Profita
bility
Analysis
Weighting
12%

Clear
evidence of
lack of
understanding
of productivity
and
profitability
analysis.
Lack of
knowledge
and poor
understanding
of Case Study
application.
Unconvincing
evaluation
and poor
examples.

Lack of
understanding
of productivity
and
profitability
analysis.
Poor
comprehensio
n is
demonstrated
in Case Study
application.
Less than 2
methods with
incomplete
and weak
examples

Competent
description of
productivity
and
profitability
analysis,
showing
reasonable
understanding
.
Reasonable
understanding
is
demonstrated
by application
to Case Study
giving 2
relevant
examples.
Some
research
carried out
beyond course
materials.

Target
Market
Weighting
15%

Clear
evidence of
lack of
understanding
of target
market.
Lack of
knowledge of
promotional
objectives and
elements.
Poor
understanding
of Case Study
application.
Unconvincing
evaluation
and poor
examples.

Lack of
understanding
of target
market.
Less than 2
promotional
objectives
outlined
showing poor
level of
understanding
.
Flawed
promotional
mix campaign,
weak link to
Case study.
Flawed link of
target market,
promotional
objectives and
promotional
mix to Case
study
organisation.

Competent
description of
target market
showing
reasonable
understanding
.
2 promotional
objectives
outlined
showing
reasonable
level of
understanding
.

Thorough and
comprehensive
description of
productivity
and profitability
analysis,
showing good
understanding.

Exceptional and
comprehensive
description of
productivity and
profitability
analysis, showing
clear insight and
understanding.

Good level of
understanding
is demonstrated
by detailed
application to
Case Study
giving 2
excellent
examples.

Extremely high
level of
understanding is
demonstrated by
detailed
application to Case
Study giving 2
insightful
examples.

Research
carried out
beyond course
materials.

In-depth research
carried out beyond
course materials.

Thorough and
comprehensive
description of
target market
showing good
understanding.

Exceptional,
detailed and
insightful
description of
target market
showing excellent
understanding.

3 promotional
objectives
clearly outlined
with good level
of
understanding
and insight.

3 promotional
objectives clearly
outlined with
exceptional
understanding and
insight.

1 promotional
mix campaign
outlined
including
promotional
elements and
description of
benefits to
Case Study
organisation.

2 different
promotional
mix campaigns
outlined
including detail
of promotional
elements and
clear
description of
benefits to Case
Study
organisation.

2 different creative
and inspired
promotional mix
campaigns
outlined including
detail of
promotional
elements and clear
description of
benefits to Case
Study
organisation.

Reasonable
understanding
is shown by
basic analysis

Good level of
understanding
is shown by
clear analysis

Extremely high
level of
understanding is
shown by

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

Organisat
ion/ logic

No flow.
No argument.

Weighting
5%

Writing
Weighting
5%

No
consideration
for
presentation.
Muddled
writing that is
very difficult
to follow.
Numerous
grammatical
errors.
Multiple
spelling
errors.

Research
Weighting
10%

No
authoritative
sources, no
evidence of
research or
not relevant
for the task.
Very limited
understanding
.
The research
has not been
linked to the

and
evaluation
linking target
market,
promotional
objectives and
promotional
mix to Case
study
organisation.

and evaluation
linking target
market,
promotional
objectives and
promotional
mix to Case
study
organisation.

exceptional
analysis and
evaluation linking
target market,
promotional
objectives and
promotional mix to
Case study
organisation.

Research
carried out
beyond course
materials.

In-depth research
carried out beyond
course materials.

Poorly
organised and
difficult to
read. Does not
flow logically
from one part
to another.
The argument
is not clear.

Generally well
organised
although the
flow of the
argument is
not always
logical.
Argument is
clear and
mostly sound.

Coherently
organised and
logical
formation of
sound
argument.

Exceptionally well
structured. Logic
is easy to follow.
Arguments are
sound and
convincing.

Acceptable
presentation.

Tidy
presentation.

Professional
presentation.

Polished
presentation.

Long winded
and some
clear writing
presentation.

Mostly clear
writing but at
times long
winded.

Clear writing
mainly to the
point.

Clear and concise

writing.

Some
grammatical
errors.

Writing style
lacks
consideration.

Multiple
spelling
errors.

Few issues
around
grammar.
Less than 5
spelling
errors.

Less than 2
authoritative
sources or
sources are
not relevant
for the task.
Limited
understanding
.
Little
evidence of
meaningful
integration of

Considered
writing style.
Excellent
grammar with
only minor
oversights.

Mature and
appropriate
writing style.
Excellent
grammar, correct
in all aspects.
No spelling errors.

Less than 3
spelling errors.

2-3 scholarly
sources.

3-4 scholarly
sources.

4-5 scholarly
sources.

Some sources
lack relevance
or authority
but are still
appropriate
for the task.

Sources are
mostly wellchosen,
authoritative
and appropriate
for the task.

Sources are wellchosen,

authoritative and
are appropriate for
the task.

Adequate
understanding
.

Good
understanding.

The research

The research is
integrated with

Excellent
understanding.
The research is
very well
integrated with the

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015

In-text
citations
and
Reference
list APA
formatted

main text.

the research
with the main
text.

could be
incorporated
with the main
text more
consistently.

the main text.

main text.

More than 5
errors.

4-5 errors.

2-3 errors.

1 error.

No errors.

Weighting
5%

MGT104 Introduction to Applied Marketing, Level 5, Credits 15, Version

1
Southern Institute of Technology 2015