This is the Pearson BTEC Level 3 Business, Unit 2, Calmsun Exam. Covering all the criteria in detail with references included and was awarded a Distinction. With an easy to follow format and structure, guaranteed to help you get the best grade possible! Led me to receive a Distinction* overall in B...
Calmsun is a family-owned and operated business that grow oats and from this produce oat milk,
and they are wanting to increase the sales of their product range in order to increase the profit they
make. The information provided shows that Calmsun is already an established business that
operates in the plant-based milk market and aims to do more to increase its financial and brand
growth. So as to achieve this, the business has decided to use an advertising campaign to target
consumers aged 16 to 24 in hopes of stimulating this younger audience compared to their usual
consumer range which is 35 to 65 years old. Calmsun has outlined and anticipated growing demand
for oat milk not only with the younger generation but overall, with the market research that has
been conducted, identifying that in 2020 approximately 25% of people were using plant-based milk
and this will be further explained below. The initial budget that has been set is £200,000 and this will
be utilised to accomplish the marketing aims and objectives.
Marketing Aims and Objectives
SMART aims and objectives are required to ensure that the business has particular targets to meet
during the advertising campaign and this will help make sure these goals are met.
Aim 1 – Marketing has to achieve an increase in sales.
As outlined in the brief given, the Calmsun owners are wanting to increase sales. The advertising
campaign, which will occur over a 30-week period, should have an increase of their oat milk sales by
7%.
Aim 2 – Growing brand awareness using social media
Another objective that is in line with increasing sales is making 16 to 24-year olds more aware of
Calmsun. This shall be done with the help of social media platforms like Instagram and Facebook by
posting consistent content aimed at this demographic. This is important as people will only buy the
plant-based milk products if they know about them. Therefore, they should strive to do this year on
year to progressively grow a consistent stream of consumers in this age range
Aim 3 – Increase the company’s profits by 9%
This is important because it will measure how successful the campaign carried out is.
Market Research on the industry
An already developed business like Calmsun should take market research into consideration which
will enable them to discover and comprehend target clients, competition and trends, which will aid
the success of the campaign. This will ensure they take calculated risks prior to launching the
advertising campaign.
The market size and growth are important factors to take into consideration. Market size is
important as it shows how crucial the products are to the entire population. The plant-based milk
industry is shown to be almost 75% of the alternative dairy product industry which highlights just
, Calmsun Assessment
how big it is. The total market of plant-based milk in the UK is seen to be £363m with the main
segments, oat and almond milk, making £146m and £105m. However, in comparison to cow’s milk
the sales worldwide were approximately £3.2 billion in 2020, which reinforces just how popular
cow’s milk still is amongst people. This information could also be seen as a positive as it means that
there are not as many players in the niche market of plant-based milk, so it isn’t overpopulated,
therefore meaning there is a higher chance of being successful and joining the ranks of those who
dominate the market of plant-based milk. Market growth is important as shows the industry’s
growth each year. Plant based milk has become an increasingly popular market expected to double
in size in 5 years’ time which is a 15-20% growth. Oat milk expected to show bigger growth than any
other plant-based milk. The research conducted on the plant-based market in the UK shows that it is
an industry where growth will take place. As stated the revenue generated in this industry is
expected to continue to rise over the next five years. This highlights that there is going to be a bigger
demand for new products and brands, meaning there is still room for new competitors to emerge or
for existing brands to grow and dictate, especially those wanting to sell oat milk. This is because the
analysis shows that oat milk has seen a bigger increase with some 60-70 pence more being
demanded by the branded entrants in this category achieving premium price. This means that for
Calmsun there is potential to expand in this sector and investing in this market could lead to
promising returns.
Currently most of Calmsun’s customers are aged 35-65 years old. The research collated shows that
demographically the products should be promoted to mainly women and young people and research
also shows that the ideal age range for this promotion is 16-24 years old. Not only this, but women
and young people in this demographic consume more plant-based milk compared to men as the
data displays that. Due to Calmsuns choice of using premium prices it is labelled as a luxury product.
For this reason, this product will be targeted at women and young people who form the middle-
upper class and are willing to spend a bit more to acquire high-quality goods. The marketing
campaign produced needs to be geared towards this market
Another factor is competition. Bigger brands like Alpro, Rude health, Plenish and Innocent produce
plant-based products from different plants like almonds, soya, coconut and oats. This means that
they have a bigger market share as they have been in the industry longer so are not as big of a threat
to Calmsun as they are a more local based brand. Alpro owned by Danone is a long-time leader in
this industry with wide product range and wide retail distribution. Supermarket own brands need to
be considered. Calmsun already have a contract set with a national supermarket chain to trial sales
of calmsun products across 50 of their stores for a six-month period and this is important because if
the trial is successful, the supermarket chain will stock Calmsun in all stores in the future. However,
supermarket own brands could pose an issue for this as these will directly be competing against
them for customers and for this reason it is an important aspect to consider. This poses an issue for
Calmsun as it means they will have to work out a way to distinguish their brand from their
competitors and make this known to the customers. This could be done by them creating a unique
selling point, for example, Calmsun being more premium and good quality compared to own
branded products. Some brands only use one type of milk such as Califia farms, Oatly and Rice
dream. This needs to be considered as Calmsun is doing same by just selling oat milk. Already sell
unsweetened oat milk, plain oat yoghurt and strawberry oat yoghurt. Make themselves stand out by
having wide product range such as sweetened and flavoured versions. Could use the fact they
products are gluten free and recyclable packing shows care about environment as a unique selling
point.
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