Assignment 2 Part A Sample 4 (Above 70%)

Assignment Title: Ideation & Product Launch Plan
Module Title: Strategic Marketing & Entrepreneurship

Module Code: xxxxxxxxxxx
Lectorial Day and Time: xxxxxxxxxxxxx
Lectorial Tutor: xxxxxxxxxx
Student ID Number: 12345678
12345678 | Ideation & Product Launch Plan 1

Table of Contents
Title Page………………………………………………………................................................................................................................................................................……….Slide 1
Table of Contents……………..………………..……………………………......................................................................................................................................................Slide 2
Executive Summary……………..………………………………………......................................................................................................................………………………..……….Slide 3
Introduction……………..………………..…………………………………………………....................................................................................................................………………….Slide 4
Ideation Process……………..………………………………………………………………...................................................................................................................................….Slide 5
Business Model Canvas……………..…………………………………………………….....................................................................................................................……………….Slide 6
Customer Segment……………..……………………………………………………………………….................................................................................................................……….Slide 7
Competitors Analysis……………..………………………………………………………………...................................................................................................................………….Slide 8
Value Proposition……………..……………………………………………………………………….....................................................................................................................……..Slide 9
Detailed Launch Plan……………..………………………………………………………….................................................................................................................................….Slide 10
Other P’s of the Marketing Mix……………..………………………………………...............................................................................................................................……….Slide 11
Monitoring and Success Management……………..……………………..........................................................................................................................................…….Slide 12
Stakeholders……………..………………………………………………………………………............................................................................................................................……….Slide 13
Financials……………..……………………………............................................................................................................................................……………………………………….Slide 14
Pitch and Conclusion……………..…………………………………………………………………….……...........................................................................................……………….….….Slide 15
References……………..……………………………………………............................................................................................................................................…………….……….Slide 16

Executive Summary
• Gousto is a meal kit provided that predominantly targets female millennials in the UK.
• The new product ideation is a branded cast-iron frying pan that will be sold online for £29.99 and will help the
business to gain a sustainable competitive advantage by meeting the needs of the same target market to
achieve market penetration.
• Gousto’s current competitors will become indirect and its new main competitor will be Le Creuset.
• The value proposition of the product is that it is convenient, sustainable, low-cost and high quality.
• The project requires £500,000 to be invested by Gousto with a Return On Investment (ROI) of 10% over 10
years.
• Approximately half of the debt capital will be spent on the Integrated Marketing Communications (IMC) plan
that is illustrated in the launch plan. The launch will be monitored using quantitative, and some qualitative,
data analytics and there are five circumstantial exit strategies available.
• The business is at risk of making a loss in the first year which is to be expected as the overall SMART objective is
to attract 10% of Gousto’s current customer base by the end of 2023. Therefore, this product is to create
awareness and disrupt the market. The business will break even with 40,000 units.
• The three stakeholders that will be most critical for the success of the launch are the customers, employees
and suppliers.
Introduction
History: Gousto is a meal kit provider that predominantly operates in the UK. It was founded in 2012 by Timo Boldt who came
up with the idea when he was working long hours in the finance industry and personally needed an easy way to source and
cook dinner (Gousto, 2017).
Vision: “To be the most loved way to eat dinner, and for every meal to leave the planet better off” (Gousto, 2023).
Objectives: Gousto’s three main objectives are to provide “A convenient alternative to traditional grocery shopping”, “A
sustainable alternative to traditional grocery” and to “Reduce the friction points that obstruct healthy eating” (Gousto, 2021).
Values: “Dream, Deliver and Care” (Gousto, 2023).
Competitive Advantage: Gousto’s main competitive advantages are its cost leadership; celebrity endorsement in the fitness
market; its diverse product range and its sustainably innovative ‘Eco-Chill Box’.
Branding: Gousto’s branding uses the colour red which is psychologically proven to arouse hunger
and white which is portrayed as pure. The brand’s voice and identity appear to be liberal, approachable and caring,
particularly about the environment.
New Product: The recommended product is sustainable branded kitchenware, designed to be sold individually or as part of a
starter pack for additional convenience, which supports organisational objectives.

Ideation Process
Function
Its function will Product Name
be to cook on and Colours
the hob and in CookQuick with
Trends the oven. Gousto branding
Current trends
include
sustainability,
technology and
Needs Met health-
Low-cost, low- consciousness. Features Technical Design
effort and Features such as The product will
versatile kitchen indented sides Product
be made of cast
equipment. for pouring will Design and iron and will
support its Branding have Gousto
functionality. branding.
Organised
The SBU will be
Benefits
organised to
High-quality, Market Inimitable
maintain SCA.
sustainable and Gousto will
convenient. position itself as
an innovator in
this industry and
people are more
V likely to by
whole sets.
Value Sustainable
Long-lasting
heirloom, easy Competitive
to maintain and Competitors Advantage
aesthetically Le Creuset, La Rare
Cuisine,
(SCA) Other meal kit
pleasing,
ProCook, Denby, brands have not
Nisbets and provided this
Blackmoor. offering before.
Valuable
Figure 1: Adapted Product Prototype (Source: Robert Dyas, 2023) The branded
cookware will be
convenient,
high-quality,
sustainable and
12345678 | Ideation & Product Launch Plan less expensive.
5
Business Model Canvas
Key Partners
• Metalex, a UK-based metal company,
Key Activities
• Research and development of the
Value Propositions
Figure 2: Adapted Business Model Canvas (Osterwalder and Pigneur, 2010)
• Solving the problem of not having the
Customer Relationships
• Self-service online shopping,
Customer Segments
• The target market is high-income
will be the third-party supplier product. right equipment for Gousto recipes. • Customer service via LiveChat, social millennials, particularly females.
manufacturing cast iron cookware. • Manufacturing of the product. • Selling individual pieces or a starter media direct messaging, e-mail or • The product will be specifically
• Other suppliers, such as Microsoft, • Marketing the product. kit. telephone. targeted at Gousto customers.
will also be key partners. • Distributing the product to the • Satisfying the customer’s need for
• Gousto, the corporate partner, and consumer. convenience by offering high-quality
its board of directors will be kitchenware whilst grocery shopping.
overseeing the strategic business • Satisfying the customer’s need for
unit. sustainable products.
• DPD the courier who will be Key Resources Channels
delivering the product. • Physical • Awareness will be raised via social
• The customer who will be purchasing The business does not require any media.
the product. physical resources as the materials, • Customers are helped to evaluate the
• The employees who will be machines, storage and factory will be organisations value proposition by
conducting the key activities. outsourced to Metalex. Transportation highlighting the kitchenware
• The investors who will be funding the will be outsourced to DPD and Gousto’s requirements and promoting the
business. head office will be used for staff. products strengths, namely its
• The Government that regulates • Intellectual quality, sustainability factors and
companies in the UK. The business will file a patent for its affordable cost.
• The local and national community unique product designs. • Customers can purchase the product
expects the business to uphold high • Human online via the Gousto website.
standards of corporate social The business requires sales and • The product is delivered by a courier
responsibility (CSR). marketing, human resources, to the customers door.
• Trade unions may impact the information technology, finance and • Customers are sent a follow-up e-
business if employees participate. operations functions. mail to review the purchase.
• Financial
The business requires £500,000 debt
capital investment to launch.
Cost Structure Revenue Streams

• The business uses a value-driven cost structure. • Branded cast iron kitchenware, such as Le Creuset, sell for £50 - £250+.
• Fixed employee overheads and variable manufacturing costs will be the most expensive cost incurred by • Robert Dyas currently has a sale on for multiple cast iron sets for £70 which is attractive to customers.
the business. • The price will vary depending on the product. However, a Gousto-branded cast iron frying pan will sell for
• Using a third-party supplier reduces costs because they can ship it directly to the customer, reducing the £29.99 which is between the most expensive and cheapest option. The reason for this is if the product is
need for factory or warehousing costs. too cheap customers may question its quality. Whereas, if it is too expensive customers may choose more
• Gousto can utilise economies of scale which will reduce the costs further. established brands for status, or cheaper alternatives.
• Marketing will be the most expensive key activity as the business unit needs to establish itself in the
market.
Geo-Demographic Psychographic Behaviour
Customer Segment Age:
Gender:
25-34
Female
Unmet Need:
To have a kitchen
stocked with high-
quality,
environmentally
friendly cookware and
Gousto recipes require certain
cookware. Although she might
have some equipment, the
products are poor quality and
to be able to obtain Need or Problem
are not environmentally friendly
that conveniently. Recognition:
as they were bought when she
was a low-income student and
Works full-time; before the sustainability trend
Undergraduate Lifestyle and exercises; socialises; grew.
Education:
Degree Activities: takes care of herself
Market Trends 2023 and her home.
Health-conscious; Social Media YouTube; Facebook;

Income: £30,000 + Attitudes:
positive; dedicated. Channels: Instagram; Twitter; TikTok.
Environmental Sustainability Friendly; ambitious; Information Uses search engines like

Marital Status: Single Personality:
• Sustainability in people, planet and profit has become organised. Search: Google or social media shops.
a long-term trend in the United Kingdom (Winston, 2022) Uses search engines, reviews
and discusses it with influential
Professional Sustainability; Evaluation of
Social Class: Values: groups like friends, colleagues,
Technology Working Class inclusivity; feminism. Alternatives:
athletic club associates and
• The long-term digital transformation trend is re-shaping mum.
the customer journey so customers expect a seamless Compares costs; customer
Location: United Kingdom Online shopping;
experience (Terwiesch and Siggelkow, 2021) cooking; reading;
experience; longevity and
quality of the product; whether
news; fashion; Purchase
Urbanicity: Urban Interests: it is oven-proof and easy to
Health-consciousness mindfulness activities;
investing; latest
Decision:
maintain and clean; availability
• Healthy living could be a long-term trend as consumers Climate: Mild technology and trends.
of colours to match her home
décor.
become more mindful of their food, alcohol and cigarette
intake (IBISWorld, 2022) Decides whether the product
was worth the price based on
how quickly it was delivered;
whether it is easy to maintain
Sustainability, working Post-Purchase
Opinions: and versatile so that she can
hard and taking care of Evaluation:
use it for multiple recipes;
yourself are important.
decides whether the colour
matches her home and how her
influential groups respond to
the purchase.
Figure 3: Adapted Consumer Persona and Customer Journey (Source: SimilarWeb, 2023)
Competitors Analysis
Figure 4: Adapted Porter’s Five Forces (Source: Porter, 1996) Figure 5: Adapted Perceptual Map

Value Proposition
Product Customer
Social Impact: Self-transcendence because their helping the planet
Initial Consideration Set Life-changing: Heirloom because the product is long- Wants the product to be high-quality.
• The business will focus on company-driven lasting so it can be based down to future generations Wants to be more sustainable
and affiliation and belonging because they feel they
marketing during this phase of Wants a higher social status and a sense
can relate to current trends in society.
the journey, investing heavily in attracting Emotional: Design and aesthetics because they can of belonging within the community.
new customers via social media choose colours that compliment their home décor. Wants the product to be aesthetically
advertisement and Search Engine Functional: Purchasing online pleasing and suit home.
alongside meal kit saves time, The customer requires
Optimisation. Wants to be able to purchase things
simplifies and reduces effort. Variety in equipment to cook
terms of kitchenware and high-quality. conveniently online and have it
Cast iron with.
Active Evaluation delivered.
cookware
• The business will continue to use company-
driven marketing, whilst Purchasing convenience The customer has to
Easy to maintain Needs the product to be easy to cook meals with
also encouraging its loyal customer base to minimal effort in terms
maintain.
review the product and make Not having the right kitchen equipment of time, energy and
Needs the product to be cheaper than
referrals. maintenance.
Environmentally friendly the current market offering.
Closure Aesthetically pleasing Needs the product to have multiple uses.

High quality
• Customers who sign up but do not complete Cheaper than alternatives Needs kitchen equipment for cooking.
the purchase will be automatically contacted
Long-lasting Versatile can cook on the hob then put in
for further support. the oven
Figure 6: Adapted Consumer Journey

Figure 7: Adapted Value Proposition Canvas (Osterwalder, 2014; Bain, 2023).
(Court et al., 2009)
Detailed Launch Plan
• The Gantt chart provides a high-level overview of the launch plan and incorporates an Integrated Marketing Communication (IMC) plan so that the product is aligned both online and offline. The
plan uses the RABOSTIC planning model which includes Research and Analysis, Audience, Budgets, Objectives, Strategies, Tactics, Implementation and Control (Pickton and Broderick, 2005).
• The project execution applies the DRIP model which means the product will be Differentiated, the message will be Reinforced and consumers will be Informed and Persuaded to buy the product
(Fill and Jamieson, 2006).
Figure 8: Gantt Chart using Project Online Professional

Other P’s of the Marketing Mix
Price Place Promotion
• Cost leadership and penetration • The product will only be • The integrated marketing
pricing strategy, defending available online and the Head communications plan means
against established brands, Office is in London. that a clear message will be
because the target market is • Inventory will be held in physical advertised across a multitude of
price sensitive. warehouses that are owned by channels.
• Immediate payment terms as third-party suppliers. • The SMART objective to ‘design
it is business to consumer. • The product will be delivered to and cross-sell the product to at
• The cast iron frying pan will sell the consumers’ door, or a local least 10% of Gousto’s current
for £29.99 individually using collection point if required. customers by the end of 2023’
psychological pricing to make it • Channels include online means that the marketing
appear less. advertising, Search Engine strategy will target these
• The cost of shipping will be Optimisation (SEO), digital customers first by providing
£3.99 which will be passed on to displays, mobile application them with a discount.
the customer at cost. notifications, direct marketing • Paid social media
and content marketing via social advertisements will offer new
media. customers a discount.

Monitoring and Success Management
Risk Event Type of Risk Likelihood Impact Risk Level
Threat or Risk
Actions
Opportunity Response
Market Penetration Strategic 5 3 Medium Opportunity Exploit Take the opportunity to penetrate the market using this campaign.
Negative media coverage Reputational 1 3 Low Threat Avoid Embed company values and promote an ethical culture so that employees do not put the company in
disrepute.
The launch may impact the meal Operational 4 4 Medium Threat Accept Accept some operational changes may be required to implement innovation.
kit business
The business will make a loss in Financial 5 5 High Threat Reduce Ensure there is enough investment to support the business during its start up period.
the first year
No prior experience in supplying Knowledge 4 3 Medium Threat Reduce Try to employ staff who have previous experience in this sector and hire consultancy services.
kitchen equipment
Breach of advertising laws Compliance 1 5 Medium Threat Avoid Ensure staff are knowledgeable on advertising laws and there are stage-gates to the concept before
submitting for review.
Cyber security attack Cyber 4 5 High Threat Transfer Acquire Cyber Security insurance and certifications to IS27001 and Cyber Essentials Plus.
Over budget or over time Project Launch-Based 4 4 High Threat Reduce Ensure the project is estimated appropriately and avoid scope creep.
Monitoring Contingency Plan Figure 9: Risk Assessment Matrix

• The project success will be measured on critical success factors using the Gantt Chart, also Option 1: Liquidation
known as the launch plan., and a finance tracker The measurements of success will be the Close the business and pay-off liabilities in full.
percentage of completion, comparison of budgeted cost and actual cost, the quality of the Option 2: Bankruptcy
deliverables and end results, qualitative data from the lessons learned log and the any logged If the business is unable to pay its debts then file for bankruptcy.
changes in scope. The measurements will be displayed on a PowerBI reporting dashboard and Option 3: Merger and Acquisition offering
will include RAG statuses. Merge the business with a similar company.
• Further analysis will also be conducted by gathering consumption, lead generation sharing and Option 4: Initial Public Offering
sales metrics on the digital advertisements. Google and social media analytics, as well as Put the company on the stock market and change the form of ownership to Public Liability
Customer Relationship Management (CRM) software will provide quantitative data which will act Company.
as key performance indicators. This information will be extracted and compiled into a report that Option 5: Sale of the business
is suitable for the audience which will predominantly by the Marketing Manager and Senior Transfer ownership to a new owner.
Leadership Team.
• Objectives and key performance indicators will be set for the advertising components using the
Defining Advertising Goals for Measuring Advertising Results (DAGMAR) model (Colley, 1995).

Stakeholders
Figure 10: Adapted Power Interest Matrix (Source: Mendelow, 1991)

Financials Cost
Accumulated
Carrying Amount Sales £445,351
Depreciation
Opening £0
Non-Current Assets
Purchases £198,000
Break Even Analysis
Computer Equipment £33,333 £3,333 £30,000
Closing £40,000 £3,500,000
£30,000
Cost of Goods Sold £158,000 £3,000,000
Current Assets
Inventory £40,000 Gross Profit £287,352
£2,500,000
Receivables £9,597 Add Revenue
Value Added Tax £44,439 Discounts Received £20,000 £2,000,000
Profit
£94,036 Less Expenses £1,500,000
Costs
Discounts Allowed £37,488 £1,000,000
Current Liabilities Telephone and Internet £18,000
Bank £13,173 £500,000 Loss
Rent and Rates £70,000
Payables £47,600 £0
Loan Interest £5,000
£60,773 0 0 0 0 0 0 0 0 0 0 0
Loan £50,000 , 00 , 00 , 00 , 00 , 00 , 00 , 00 , 00 , 00 , 00
Wages and Salaries £250,000 10 20 30 40 50 60 70 80 90 1 00
Net Current Assets £33,263
Non-Current Liabilities General Expenses £10,000 Number of Units
Bank Loan £500,000 Depreciation Charge £3,333
Total Assets -£436,737 Advertising £250,000
Financed By: Research and Development £83,333 Costs Selling Price
Capital £33,066 Total Expenses £777,154
-£469,803 Figure 13: Break Even Analysis
Net Profit -£469,803
Figure 11: Balance Sheet Figure 12: Profit and Loss Statement
Assumptions
Total Inventory 40,000
Sell Price £29.99
Variable Cost Per Unit £9.00
Fixed Costs £656,333
Profit and Loss Statement

Sales Revenue £1,199,600.00
Cost of Goods Sold £360,000
Gross Profit £839,600.00
Net Profit £183,267
Figure 14: Sensitivity Analysis
Pitch and Conclusion
• The purpose of financing is to generate capital to ensure the company
can cover its costs during the start-up phase, or when it requires
additional investment to expand or for innovation (Frimanslund et al.,
2020).
• Gousto has been chosen to finance the business as the product as it has
the same target market and the product aligns with its organisational
mission and objectives.
• The amount requested is £500,000 which will be paid back over 10 30 sec Promotional Video
years with an interest rate of 1% and a Return On Investment (ROI) of Teaser
10%.
• Five situational exit strategies were proposed.
• The main financial risk is that the business will make a loss in the first
year, which is common for start-up companies (Mankins, 2017).
• Half of the funding will be spent on marketing activities, including the
IMC plan, with a large proportion of funds being spent on social media
platforms that will provide quantitative data analytics which will be
used for monitoring success.
• The remaining budget will be spent on start-up costs, including research
and development, promotional discounts and employee overheads.

References
Ansoff, H. (1957) ‘Strategies for Diversification’. Harvard Business Review. 35(5). pp.13-124.
Bain (2023) Elements of value. [Online] Available at: https://media.bain.com/elements-of-value/# [Accessed: 13 April, 2023].
Barasz, K. (2017) ‘Research: If you position products as a set, people are more likely to buy them all’. Harvard Business Review. November. [Online] Available at:
https://hbr.org/2017/11/research-if-you-position-products-as-a-set-people-are-more-likely-to-buy-them-all [Accessed: 12 April, 2023].
Barney, J. (1991) ‘Firm Resources and Sustained Competitive Advantage’. Journal of Management. 17(1). pp.99-120.
Bucholtz, A.K. and Caroll, AB. (2012) Business and Society: Ethics and Stakeholder Management. 8th edn. Boston: Cengage Learning.
Colley, R. (1995) DAGMAR: Defining Advertising Goals for Measured Results. New York: NTC Business Books.
Court, D., Elzinga, D., Mulder, S. and Vetvik, O.J. (2009) ‘The consumer decision journey’. McKinsey and Company. 1 June, 2009. [Online] Available at:
https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-consumer-decision-journey [Accessed: 13 April, 2023].
Eastman, J.K., Iyer, R., Liao-Troth, S., Williams, D.F. and Griffin, M. (2014) ‘The role of involvement on millennials’ mobile technology behaviours: The moderating impact of status consumption, innovation and opinion leadership’. Journal of Marketing Theory and
Practice. 22(4). pp. 455-470.
Falkheimer, J. and Heide, M. (2015) ‘Strategic Communication in Participatory Culture’. In Holtzhausen, D. and Zerfass, A. (2015) The Routledge Handbook of Strategic Communication. New York: Taylor and Francis.
Faris, R. (2015) ‘Market to Millennials by getting out of the way’. Harvard Business Review. 9 December, 2019. [Online] Available at: https://hbr.org/2015/12/market-to-millennials-by-getting-out-of-the-way [Accessed: 13 April, 2023].
Fill, C. and Jamieson, B. (2006) ‘Marketing Communications’. Edinburgh Business School. [Online] Available at: https://ebs.online.hw.ac.uk/EBS/media/EBS/PDFs/Marketing-Communications-Course-Taster.pdf [Accessed:29 April, 2023]. Falk
Finneman, B., Ivory, J., Marchessou, S., Schmidt, J. and Skiles, T. (2017) ‘Cracking the code on millennial customers’. McKinsey and Company. 18 March, 2017. [Online] Available at:
https://www.mckinsey.com/industries/retail/our-insights/cracking-the-code-on-millennial-consumers [Accessed: 13 April, 2023].
Friedman, M. (1970) ‘The social responsibility of business is to increase its profits’. New York Times. 19 September, 1970. pp. 122 – 126.

Assignment 2 Part A Sample 4 (Above 70%)

Uploaded by

Assignment 2 Part A Sample 4 (Above 70%)

Uploaded by

Assignment Title: Ideation & Product Launch Plan

Module Title: Strategic Marketing & Entrepreneurship

12345678 | Ideation & Product Launch Plan 1

Business Model Canvas……………..…………………………………………………….....................................................................................................................……………….Slide 6

12345678 | Ideation & Product Launch Plan 2

Values: “Dream, Deliver and Care” (Gousto, 2023).

12345678 | Ideation & Product Launch Plan 4

Cost Structure Revenue Streams

Customer Segment Age:

Market Trends 2023 and her home.

Health-conscious; Social Media YouTube; Facebook;

Environmental Sustainability Friendly; ambitious; Information Uses search engines like

12345678 | Ideation & Product Launch Plan 8

Closure Aesthetically pleasing Needs the product to have multiple uses.

Figure 6: Adapted Consumer Journey

Figure 8: Gantt Chart using Project Online Professional

12345678 | Ideation & Product Launch Plan 11

Monitoring Contingency Plan Figure 9: Risk Assessment Matrix

12345678 | Ideation & Product Launch Plan 12

Figure 10: Adapted Power Interest Matrix (Source: Mendelow, 1991)

Profit and Loss Statement

12345678 | Ideation & Product Launch Plan 15

12345678 | Ideation & Product Launch Plan 16

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