Diploma of Management
Semester 1

Establish and Adjust the Marketing Mix

A Recommendation Letter
To
Healthy Haven Pty. Ltd

Prepared by: GLENDA GAERLAN
Submitted to: Kevin Meurant
Submitted when: 3 June 2013
Class: Monday 1.30 pm - 4.30 pm

Dangel’s Marketing Consultancy
17 Mimosa Avenue
Toongabbie NSW 2146

5 June 2013
Mr. Ben Moses
Healthy Haven Pty. Ltd
12 French Avenue
Safe Haven Vic 3000

Dear Mr. Moses:

The last time we spoke 4 months ago, you have told me about your plans on expanding your business operations in New South Wales. At that same time, you gave me a go signal to perform a marketing research around Blacktown area considering the environmental factors and the important elements of marketing which include the 4P’s. This letter has been prepared in order to give you a recommendation regarding your plan to expand your business operation in Sydney as a part of your continuous improvement system. This is whether to open a new store or to appoint a distributor to sell your products.
My understanding to your current business status
Healthy Haven Pty Ltd. is a company that is based in Melbourne which retails a wide range of vitamins and healthy products. There are four outlets in Melbourne which built the business rapidly since start of operation 5 years ago. You, as the owner and single director of the company had been in the industry for over twenty years and your vision is for the business to be expanded throughout the country within a period of ten years. You are obviously now looking forward to start doing business in Sydney area wherein you think is going to work due to the fact that the operations in Melbourne are fruitful and financially stable.
Based on the document that you have presented to me, I have understood that you presently have 19 employees including full time and part time. Your total sales for the previous year were $1.6 million with a bottom line figure of 27.5%. It also shows that you run your business on simple principles that you keep as much as possible including demand of 50% gross profit on all sales.

My approach to the issue
In every business whether small or large, an effective marketing research should be conducted in order to get the best results for the business. The research I have done generated accurate, relevant and current data regarding the general environment. This includes the economic, demographic, cultural, technological, political and legal factors that have great effect on the business that is going to be operated.
Economic factors
These are the conditions that can affect the management of the business processes in terms of economic condition. They include the following:
Interest rates
Employment rate
Inflation
General level of consumer spending
People’s belief about economy and their expectations of economic trends.
Demographic Factors
These are the conditions that can enormously affect the business.
Population within the area
Gender of customers
Age
Level of education
Income level
Socio-cultural Factors
These refer to the changing expectations of the society which include:
Tastes
Values
Health issues awareness
Technological Factors
There are fast and continuous changes of technology in this business world today and these affect both small and big time organisations. An increasing number of companies adapt technological changes in order to manage performance improvement.
Political and Legal Factors
These refer to the requirements needed to be complied with by an organisation such as permit and licences, WHS and work cover legislations and other government laws and regulations.
The result of the research conducted regarding the environmental factors indicates certain opportunities for the operation of the business.
The following strategies has also been performed to provide you more understanding why I recommend you to open a new store rather than appointing a distributor to sell your products.
Comparison of advantages and