Paffarelli Health Kings Case Study Flashcards
What are the strategies for PHK in expanding their product range?
Undertaking a SWOT analysis and Market Research
Why should PHK undertake market research?
Situational Analysis - they can identify the stage of their development (maturity), understand their competitors, put in place plans for product renewals
Market Research - they can divide the market into segments (healthy, environmental, speed) and they can then develop products to suit their target market
What can PHK do to improve product quality?
Product Differentiation and Packaging
Why should PHK undertake product differentiation?
PFK should focus on quality as their competitors are new and may have price penetration strategies
Promotes the quality of their healthy food meals to consumers (quality better than competitors)
Why should PHK undertake packaging reform?
Packaging is a key element of what makes the product - its the first interaction consumers have with PHK and it should be something they are proud to own
PHK packaging reform could:
- Emphasise the healthy and sustainable nature of
the product (colourful pictures of exercise, environment)
- Use biodegradable packaging instead of plastic to
demonstrate Paffarelli’s commitment to the environment
How can PHK improve market share?
Relationship Marketing
Opinion Leaders
Advertising
Price Points
Open Process
Why should PHK undertake relationship marketing?
Relationship marketing builds and maintains long-term customer relationships - this is important for PHK because they don’t want to lose their customers to competitors
PHK could undertake relationship marketing by:
Offer Loyalty Cards - eg; for every 10 meals, get one free
Offer competitions for regulars - eg; prize being a month’s supply of meals
Offer loyal customers special offers via email
Why should PHK utilise opinion leaders?
Opinion leaders are respected community members in a certain area who sell products on their influence
- PHK could get healthy community chefs to endorse the products
- For the environmentalists, could get local Bushcare/Greenpeace etc
- For the speed people, get the word of already loyal customers for a true community perspective
Why should PHK undertake advertising?
Advertising is the public face of the promotion mix and is used to convey a message to a broad group of consumers
Launch an Advertising Campaign that Stresses PHK’s Green Links
Must be ethical
Show that PHK is meeting the triple bottom line and has a commitment to CSR (environment, social with meeting their needs, and financial through not charging high prices despite demands)
Use Community Media - Eg, Local Environmental Facebook Pages, Magazines, newspaper etc.
Why should PHK utilise price points?
Price Points offer a range of products at different prices to increase sales
Different Prices for Different Meals (healthy foods are more expensive, regular meals cheaper, environmentally friendly meals can be more expensive)
Sales Promotion → product promoted using short-term attractive initiatives
PHK can have 1 free healthy meal for every new customer
How could PHK build on processes?
Processes relate to the entire experience that the consumer has with the business
Show Consumers that the food truly is healthy & organic
Provide Videos of Production Process - Source to Table
