Description

Question 1

Tonies

In recent years, audiobooks have been enjoying growth globally and young listeners are an important driver for growth. According to a spokesperson for the American Audio Publishers Association, ‘The average age of the audiobook listener has fallen and younger listeners are the fastest growing market segment.’ The US is the strongest market, followed by China. The UK has shown particularly fast growth. Generally, audiobooks in physical format (CDs) are in decline as digital downloads

are increasingly favoured, although in Germany, where growth has not been as fast as the UK, physical formats remain popular. One entrepreneurial venture has been capitalising on the audiobook trends. Two fathers teamed up to invent the Toniebox. Designed for children, the Toniebox is a soft, tough cube that plays audio stories and music. The Toniebox costs around £60 and comes in a range of colours. Customers can select from a wide range of Tonies – hand-painted figures that magnetically connect to the Toniebox and download audio content to play, including educational content, stories and music. For example, for £15 customers can purchase a Lion King Tonie that includes a story and songs and runs for approximately 30 minutes. The idea is that children can collect the Tonies. Creative Tonies are also available, which can be filled

with customers’ own audio content via the Toniecloud or Tonie app. Over 10 million Tonies have already been sold and over 60 characters released since the Toniebox was launched in Germany, Austria and Switzerland in 2016. The company recently entered the UK market with its award-winning audio system.

Required:

Devise a marketing plan for the Toniebox that capitalises on opportunities presented by the

UK market.

(Total 30 marks)

Question 2

Ecoclean

Ecoclean is an international organisation that supplies machinery for industrial parts and

surface cleaning. Product applications include single parts cleaning, precision cleaning and

surface processing. The innovative nature of the products is illustrated by, for example, the

EcoCsteam technology patented by Ecoclean, which is able to efficiently and effectively

clean surfaces of any type of material – without using any detergents. Other innovative

products include the EcoCwave, a powerful spray flood cleaning system with a vacuum-tight

work chamber, as well as specific machinery for ultrasonic precision parts cleaning.

Clients of Ecoclean include manufacturers of optical and medical components and aircraft

and automotive industry organisations. Ecoclean’s website includes an interactive

requirement analysis tool, where prospective clients can input details relating to their needs.

A customer service app enables clients to send error messages and request service, spare

parts, maintenance and training. Ecoclean also provides seminars and training.

Ecoclean’s ‘Life Cycle Services’ demonstrate the organisation’s long-term approach to

customer care. For example, according to the website: ‘With EcoCservice, Ecoclean offers a

comprehensive service for all industrial cleaning installations – beginning with the design

and continuing to the implementation and far beyond.’ Ecoclean has a strong presence at

trade shows, such as MACH organised by the Manufacturing Technologies Association,

which provide a valuable opportunity to meet potential new clients.

Required:

i) Reflect on the characteristics of Ecoclean’s ‘customer’ and the likely decision process

that these buyers will use when purchasing Ecoclean’s products.

(20 marks)

ii) Taking into consideration your knowledge of business buyers, what advice can you

give Ecoclean with regard to its marketing strategy?

(10 marks)

(Total 30 marks)

Section II

Essay Question

Oaties is a Scottish family-run manufacturer of premium organic oat-based snacks including

porridge pots, breakfast cereal and breakfast bars. It currently distributes its products from

trucks at festivals and farmers’ markets across Scotland but is seeking expansion.

Required:

i) Discuss the issues and options that the manufacturer should take into account for

effective channel design.

(20 marks)

ii) Advise the manufacturer on managing and incentivising potential channel partners.

(20 marks)

(Total 40 marks)

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