THE MARKETING EQUATION: MINI CASES

CASE 1: CORE CONCEPTS OF MARKETING

COUNTRY FARMHOUSE SOY PRODUCTS – THE BEGINNING

The future had looked bleak when Kevin D’Aguilar had lost his job at Breads Continental Foods,
after 23 years of service. However, when his wife told him about Soy Projects International
which was seeking partners to manufacture and sell soya products in the Caribbean countries,
Kevin quickly jumped at the idea.

Indeed, this was an ideal opportunity for Mr. D’Aguilar to turn his healthy vegan life style living
into a business by making and selling tofu. Although he did not do any formal research, he knew
that there was a market for non-meat products as he had firsthand experience due to his own
difficulty in getting these products to eat. The rise in animal rights groups and the daily news
about animal prone disease scares such as the mad cow disease also provided an increase in
people seeking non-meat protein alternatives.

Mr. D’Aguilar used his redundancy payment and started Country Farmhouse Soy Projects in
2008 with technical and production support from Soy Projects International. The business which
was operated on a shoe-string budget, was located in Duhaney Park, St. Andrew, Jamaica. It had
two full time and two part-time staff working out of a tiny 10 X 40 foot shed, at the back of the
D’Aguilar’s house. They produced 5,000 pounds of tofu per week for sale. Great effort was
made to keep production efficient. Keeping staffing low and production equipment fully utilized
while reducing raw material and set up cost by making only one type of tofu have allowed CFS
to price its tofu less that its competitors. The other competitors offered at least two types of tofu
in fancy packaging.

In 2010, CFS sold its tofu (firm) for $260 for the 549g package. The tofu, made from soya, was
placed in clear plastic bags with water with a simple label marked “Country Farm House Soy
Tofu—firm. Lee Kee’s which is a local producer sold their tofu for $308 for the 549g firm and
$315 for the soft version while Mori_Nu tofu was priced at $270 for a 334g (firm) and $285 for
the 344 g (soft) package. Mori-Nu which is imported from the USA is packed in attractively
designed tetra boxes which allows the tofu to last longer

CFS sells its tofu directly to restaurants and health food stores in Kingston from its own premises
and from its sale vans. Some of the products were sold at a weekly market at the 3H Club
sponsored by the Jamaican Vegetarian Society. CFS does not sell directly to individual
consumers and households but it needs to have its product widely available in Jamaica if it is to
reap benefits from the high level of production. Attempts to get their tofu in the major
supermarkets have been unsuccessful as Mr. D’Aguilar is reluctant in giving perks or paying
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supermarkets to stock CFS tofu on their shelves. As such, most of its products are restricted to
health stores in the tri-parish area of Kingston, St. Andrew and St. Catherine.
Mr. D’Aguilar does not do much promotional activities. There is little or no signage at the
factory but CFS is listed in the yellow pages of the telephone directory and he has posters placed
at the health stores that sold CFS tofu. CFS has a Facebook page but it is not updated or utilized
much. Basically, he felt that “if you made the right product at a low price sold from the right
place, then ‘fancy marketing’ was not necessary”.
Despite or inspite of the challenges facing CFS, the company has seen a continuous growth in
sales since its inception. Buoyed by the increased sales, Mr. D’Aguilar was envisioning
increasing the company’s output by acquiring additional production equipment and expanding its
distribution reach. There was no formal mission statement to guide the firm’s growth but this
move would be in congruence with his vision of being leaders in the provision of healthy
nonmeat protein alternatives while reducing production cost.
Nevertheless, as the new marketing manager, you know that any attempt to implement any plan
should only be done after a proper analysis and understanding of the environment and the impact
it will have on the business. This would help the business in efficiently and effectively providing
customer satisfaction and improving the company’s profitability.

TASKS
As the new marketing manager for CFS, prepare a report to Mr. D’Aguilar that gives an
understanding of the market the company is operating in. Your report should specifically
identify the key core concepts of marketing in relation to CFS and covers the following:
1. Identification of the needs, wants and demands being filled by CFS?
2. Explanation of Marketing Myopia. Determine which marketing philosophy is being used
by CFS and state whether it suffers from Marketing Myopia. Why?
3. Identification of the four (4) elements and corresponding variables of the marketing mix
for CFS.
4. Proposal for mission, vision and value statements for CFS. State two (2) reasons why
these statements are important to CFS.
5. Develop three (3) SMART objectives for CFS for the upcoming financial year.
6. Outline of the marketing process steps that CFS needs to do to satisfy its customers
efficiently and effectively.

END OF CASE

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 MINI CASE SUGGESTED RESPONSE
REPORT ON COUNTRY FARMHOUSE SOY PRODUCTS
Prepared for: Kevin D’Aguilar
Manager

Prepared by: Basil Brians

Marketing Manager

Date: September 2018.

Subject: Marketing Concepts at CFS

1.0 INTRODUCTION
1.1. CFS is a small company that manufactures and sells tofu as its only product. The company
does not have mission, vision and value statements but is dedicated to making wholesome non-
meat protein products. It employs mark-up type pricing and does direct distribution to its
customers which are mainly retailers or producers. The company does little or no promotion.
1.2. The objectives of this report include
1.2.1 Determining the marketing philosophy used by CFS and develop mission, vision and
value statements.
1.2.2 . Identify the marketing mix for CFS and outline the marketing process of the
company.

2.0. Needs, wants and demand at CFS

2.1 . Needs are felt states of deprivation or lacking. Basic physiological needs such as
hunger and thirst are innate.
2.1.1 Hunger is the need being filled.
2.2 Wants are the needs based on the customer’s preference which are influenced by
his/her gender, race, status quo, health etc. Wants are learnt or acquired preference
for fulfilling needs.
2.2.1 Non-meat protein such as tofu is the want being filled by CFS.
2.3 Demands are wants backed by the customers willingness and ability to pay for the
product.
23.1The wanting of non-meat protein and ability to pay the price of $260 is the demand
being filled.
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3.0 Marketing Philosophies
3.1. Marketing Myopia occurs when companies are focusing on the product they are making
instead of focusing on the need that their products are satisfying. The Production, Product and
Selling Concepts suffer from Marketing Myopia. They all tend to make the product and then find
the buyer.
3.2. CFS is using the Production concept because
i. It makes only one product with no variety, style and features.
ii. It focusses on being efficient in the use of factors of production such as
labour, and machinery
iii. Does not do much promotional activities.
iv. Does not do intensive distribution in order ?????
3.2.1 CFS is suffering from Marketing Myopia because
3.2.1.1 companies that do the Production Concept tends to ignore the actual needs of the
customer because they focus on just the creation of the product without thinking about the taste
and situation of each customer.
3.2.1.2 In concentrating on making tofu economically, CFS may not see the need to adapt its
product (offer variety in tofu and even offer other soy products), implement distribution
strategies that might incur cost but better able to satisfy consumers who are the ultimate
customers.
4.0 Marketing Mix at CFS.

4.1. Marketing mix is a tool consisting of four elements called Product, Place, Price and
Promotion (4Ps) that the marketer uses to assist him or her in effectively and efficiently
satisfying customer needs, wants and demand.

4.1.1. Product – Tofu, made from soya, was placed in clear plastic bags with water with a
simple label marked “Country Farm House Soy tofu—firm. Soya tofu (one type and
style)
4.1.2. Place or distribution – direct sales to restaurants and health food stores in Kingston from
its own premises and from its sale vans.
4.1.3 Price – Mark-up pricing. $260 for (549g) package - firm.
4.1.4 Promotion - not much promotional activities were done: yellow pages of the telephone
directory and he has posters placed at the health stores Limited social media

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5.0 Develop mission, vision and value statement for CFS
5.1 A mission statement communicates the organization’s reason for being, and how it aims to
serve its key stakeholders: customers, employees, and investors, community, government and
competition.
5.1.1 Mission statement
To provide wholesome nonmeat products made by trained and motivated staff, for healthy
minded customers with profitable rewards for shareholders.
5.2. A vision statement is a narrower, future-oriented declaration of the organization’s
purpose and aspirations. How CFS would like to look or be seen while it is providing
wholesome non-meat products.

5.2.1. Vision statement

Being the leader in the provision of healthy non-meat protein alternatives

5.3. A Value statement represents the core beliefs of the organization that inspire and guide its
choices in the way it operates and deals with people. It reaffirms or states outright the
organization’s values that might not be evident in the mission or vision statements.
5.3.1 Value Statement
Honesty Integrity and Trust (HIT)
Honesty:
Integrity: Carry out all our work with the greatest responsibility and
accountability
Trust:
5.4 Two reasons why mission, vision and value statements are important are:
5.4.1 guide strategy development,
5.4.2 help communicate the organization’s purpose to stakeholders,
5.4.3 inform the goals and objectives set to determine whether the strategy is on track.
5.4.4 Serves as a rudder is to a ship to guide its operation.

6.0 Marketing Objectives.

6.1 The goals set by a business that it should achieve within a given time frame.

6.2 All objectives should be SMART i.e. Specific, Measurable, Achievable,

Realistic, and Timed.
6.2.1 Specific – Be precise about what you are going to achieve.
6.2.2 Measurable – Quantify your objectives.
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 6.2.3 Achievable – Are you attempting too much?
6.2.4 Realistic – Do you have the resources to make the objective happen (men,
money, machines, materials, minutes)?
6.2.5 Timed – State when you will achieve the objective (within a month? By end
of financial year?)
6.3
6.3.1 Increase sales of tofu by 35% in the 2018/19 financial year
6.3.2 To gain 30% of the market for tofu in Jamaica by March 2019
6.3.3 To achieve 10% return on capital in next financial year 2018/19.

7.0 The Marketing Process steps for CFS.

7.1 The marketing process consist of steps or activities that a company performs to
effectively and efficiently satisfy its stakeholders while providing its good and
services. The typical steps include Analysis, Planning, Implementation and Control.
(APIC)
7.2 The marketing process outline for CFS include;

7.2.1 Analysis – the environment including internal resources and external

factors are assessed to determine the company’s strengths and weaknesses
in order to exploit opportunities or minimize threats that may be
encountered when making and selling tofu in Jamaica.

7.2.2 Planning – The company determines how it will influence the future by
determining its purpose to provide wholesome non-meat products
(mission) and expectation to be leaders in the non-meat protein market
(vision) and the guiding principles it will adhere to in achieving its goals
in satisfying customer needs for healthy meals.

7.2.2.1 Develop mission, vision and value statements

7.2.2.2 Set SMART objectives.
7.2.2.3 Formulate marketing mix (4Ps) strategies that will help achieve the
objectives.

7.2.3 Implementation
7.2.3.1 Steps and action plans to assist CFS in executing its plans and
tactics to become the leader in non-meat and healthy foods. Who
does what, where, when, how and why.
7.2.3.2 Schedule and allocation of resources
7.2.3.3 Control

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 7.2.3.3.1 Measures taken to ensure action plans are on time and
executed efficiently and effectively.
7.2.3.3.2 Meetings, reports, PERT, and other methods for
identifying problems and corrective action

8.0 CONCLUSION
CFS is dedicated to making wholesome non meat protein products but it is using the
Production Concept which can lead to marketing myopia. This might hinder it from seeing
alternatives and other opportunities that can also fill consumer needs for non meat products.
The company needs a mission, vision and value statement. Its marketing mix consists of a
narrow product line, mark-up type pricing and direct distribution to its customers which are
mainly retailers or producers. The company does little or no promotion. The marketing
process will see the company conducting analysis, planning, implementing and controlling
activities.
9.0 RECOMMENDATION
CFS should adopt the marketing concept, research customer needs and improve its marketing
mix by widening its product line, extending its distribution, and increase promotion
significantly by using traditional, nontraditional and social media effectively. It should also
develop mission, vision and value statements.

END OF CASE

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 MINI CASE SUGGESTED TEACHING PLAN
MINI CASE 1 – CORE CONCEPTS
TEACHING PLAN
Unit Objectives/Time/Procedure Questions/Answers
In the essence of time, have students read the case
material and attempt the questions prior to class.

Procedure:
1 – 5 min. On the day of class, put students in
groups and have them share their responses with
their group members and then prepare a group
response to the case.

20 – 30 mins. Visit each group and guide students

with appropriate questions or answers. Students
may attempt all questions at once or have them
attempt each question and then give response before
doing next question.

30 mins. Ask student rep from group to share

his/her group’s response by randomly selecting two
to three groups to provide their attempts. The class
will then give feedback and input.

(Group rep can provide answers for entire case or

just for particular questions).

Core 1. Core Concepts of Marketing 1. Prompt students to

concepts Identification of the needs, wants and demands pinpoint relevant areas that
of being filled by CFS? would indicate an
marketing understanding of the
Note similarities between needs, wants and demand difference between needs,
Distinguish between needs, wants and demands. wants and demand
Explore idea of Innate vs acquired need (wants) and
purchasing power(demand).

2.Marketing Philosophy
Know the era, name and tenet of each philosophy 2. Students to be encouraged
Explanation of Marketing Myopia. to have a check list of the
Determine which marketing philosophy is being different philosophies in
used by CFS terms of era, orientation and
8

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 State whether it suffers from Marketing Myopia. tenets.
Why?

3.Identification of the four (4) elements and

corresponding variables of the marketing mix for 3. Implore the students to
CFS. know the elements of the
Define Marketing Mix marketing mix and their
Draw an outline of a generic marketing mix associated variables and then
Identify marketing mix elements in case study to practice identifying them
in companies.

4. Objective: Design an effective mission

statement for CFS to help direct the company. 4. Who is a stakeholder?

Define Mission, Vision and Value (MVV)

Statements What are the components of
Planning Explain the connection between the three statements an effective mission and
Know the major stakeholders of a company vision statement?
Design draft MVV statement for CFS Why are mission and vision
statements important to a
company’s success?

5. Create SMART objectives. 5. Students to develop at

Know the Specific, Measurable, Attainable, least three (3) objectives:
Realistic and Time bound requirements for setting profit, sales, growth and
objectives. market share.

Familiarize students with basic objectives of Each objective should

business include the key components
of objectives.

6.Link between marketing

process and marketing plan.
6.Marketing Process
Define the Marketing Process.
Map the steps of the marketing process.
Identify the steps of the marketing process
appropriate to the case study.

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must acknowledge the copyright owner. This permission does not include publication.