BMA351 Marketing Management

 BMA351 Marketing Management

 Read the case ‘BUBNEST – The Nest Best Thing’ and answer Question 1 – 4.

Case: BUBNEST® – The Nest Best Thing

Like all new parents, Astrid Schwartz learnt very quickly the value of sleep, both for herself and her baby. It can be hard going anywhere with a new-born without disrupting their sleep, so Astrid decided to make a nest for her baby to sleep in when they were out and about. After constantly being asked about it by other parents, she realised she had created a product that was in demand. “I made nests for my babies when they were new-borns and I just couldn’t live without them. My babies quickly settled when I placed them in the nest; perhaps they recognised the smell or they liked the soft snug edges,” said Astrid. “I used them everywhere – around the house, at friends’ places, in the park, while exercising and while travelling to Sweden where my family lives. I couldn’t understand how other new parents could survive without a nest, so it became my mission to give them a rest by providing a healthy and safe place for their bubbas to sleep.” In 2015, Astrid responded to the interest in her nests by starting her business, Bubnest. Since then Bubnest’s mission has been to provide ease to new parents and make the beginning of life even more magical. As a mum, Astrid became more aware of the amount of plastic and chemicals can be used and the increasing number of allergies in children. She realised that all new parents could benefit from a breather while bub could rest in a familiar environment free from chemicals and toxins anywhere at anytime. So Bubnest purposely produces nests made of purely organic materials, free from toxins and chemicals. The first product of Bubnest was a baby nest bed with Scandinavian design, produced in Australia out of organic material sourced from mills across the globe. Keeping production in Australia is something that is close to Astrid's heart, it ensures consumers in Australia get top quality products manufactured under fair trade conditions and it provides flexible working opportunities for women that cannot find the right balance in the 'traditional' corporate world while juggling work, home, and family responsibilities. Now the business also sells twin nests, nest accessories (liners, covers), cot blanket, burpee cloths, nursing pads and among others. Astrid has a background in the finance industry and when arriving in Australia in 2010, she was shocked that many women gave up on career and future income potential because of inability to find flexible working opportunities. At Bubnest® the team can schedule the work around their life, work while caring for children and be there for school and childcare drop-offs and pick-ups. Offering work opportunities to local women is a way to contribute to an equal society.

(Adapted from Australian Small Business & Family Enterprise Ombudsman and Bubnest websites, 2020) 3

BMA351 Marketing Management

Question 1 Discuss two marketing strategic choices that are available to Bubnest in baby products market. Consider product-market life cycle in your answer. [10 marks]

Question 2 Discuss how you would manage the promotion mix for Bubnest products and the chosen target market. Make sure you support your answer using relevant concepts and examples. [10 marks]

Question 3 The company bases it pricing decisions largely on what is necessary to recover their costs or match competitors. Discuss the drawbacks of this approach. Recommend another pricing approach appropriate for the company and justify. [10 marks]

Question 4 Explain the concept of brand positioning. Recommend appropriate positioning strategies for Bubnest. Discuss the process that you would go through to make such recommendations. [10 marks]

End of Examination