TABLE OF CONTENTS

CONTENTS
TASK 1
TASK 2
TASK 3
TASK 4
TASK 5
REFERENCES

PAGE
3
7
13
17
22
26

TASK 1:
a) Identify Wellos value proposition and critically evaluate the potential it has for gaining
a competitive advantage in attracting funds for a future business growth.
An evaluation by Barnes et al (2009) identified value proposition as the promise to acknowledge
and deliver value. This is promised and achieved with the view that customers of a companys
products and services will experience and appeal high quality services and products. In the view
of Wello, Cynthia Koenig shows that the value proposition will ensure that quality and affordable
Wello wheels will be provided for customers.
1

Also, since the Wello wheels primarily targets poor individuals and households in the world, the
Wello wheels must be able to pay off every investment made within the shortest possible time.
Subsequently, the Wello wheels will go a long way to improve healthy life style as clean water in
large quantities for household use can be transported over long distances with less stress. This
value proposition positions Wello to have a competitive advantage over any competitor for
funding. The value proposition of Wello expands to women empowerment as women will have
ample time to be engaged in other income generating activities apart from fetching water for
household use. This business idea is sure to attract funds from organisations and governments
who are encrusted in the idea of women empowerment. Customers of the Wello wheels are
assured of a quality product that equally promotes community health. According to Lake (2010),
a company is able to have a competitive advantage over her competitors if its value proposition
strikes a balance between its product quality and pricing. At a price of $34 per water wheel,
customers are assured of quality water wheels that can fetch revenue of about $80 a month
through the Business in a barrel idea. Consequently, the $34 per water wheel is expected to be
reduced as Wello strategizes to have on rails manufacturing plants that is mobile to help cut the
cost of manufacturing. As such, when manufacturing cost is reduced, the actual price of the
Wello wheels will be reduced. This will provide a higher competitive advantage over competitors
in terms of attracting funds for future growth (Rintamaki et al, 2007).

b) Identify and assess the management tools and techniques that can be used to evaluate
the value proposition of an organization.
Management tools and techniques such as the SWOT analysis, Porters five forces model, BCG
Matrix can be used to assess the value proposition for Wello.
The SWOT analysis identifies the Strength; Weakness; Opportunities and Threats of Wellos
value proposition. Both internal and external sources of information will be required to evaluate
the value proposition of Wello.

The Porters five forces model is a tool that places an effective role in analyzing a particular
industry (Porter, 2008). The components of the Porters five forces model are Threat of entrants;
Power of suppliers; Power of buyers; Threat of substitutes; and Competitive rivalry. The
identified components of the model are identified as factors that influence the performance of
industries. The identified factors can help Wello water wheels to design strategies that will
ensure the expansion of the business n the global market.
The BCG Matrix (Boston Consulting Group) is based on the product life cycle theory that helps
determine priorities to be given to the product portfolio of a company. This helps ensure long
term value creation. Ts evaluation is based on the market share and market growth of company
products. The four categories of the BCG matrix include Stars; Cash cows; Dogs and Question
marks.
Table 1: Evaluating the value proposition of Wello water wheels
Price
Features
Quality
Support
Availability
Competitive
Original /
Excellent
Comprehensive Selective
customized

Reputation
Prestigious

An evaluation of the Wello water wheels shows that the pricing will be competitive whilst its
features will be original and customized for various locations. With an excellent quality and a
comprehensive support for customers to use the product without problems, it is expected that the
product will last longer and serve its purpose. The availability of the product will be selective
since they will be made available at target markets. A prestigious reputation is expected to be
achieved from the Wello brand and the Wello Water wheels.
c) Select TWO tools or techniques from the above analysis and assess the value proposition
of Wello.
i) SWOT (Strength; Weakness; Opportunity; and Threat) analysis: The SWOT analysis
clearly shows that Wello has several strengths such as a large demand for the product and
effective and productive working staff. There is also the availability and cheap raw materials for
production. The mobile manufacturing plant on rails is also a strength that allows the company to
manufacture its products at various locations at a cheaper cost. The weakness of Wello include
3

penetrating existing local markets where local manufacturers produce similar products at
relatively cheaper costs. Wello has several opportunities to access funds from several
organisations that are involved in providing quality water; improving health of individuals and
communities; women empowerment; and environmental cleaning. The threats to the success of
Wello are the increase in competition within the industry when other companies find the product
to be viable and investment friendly. Also, taxes and cumbersome documentation for foreign
companies who aim to enter into local markets can be a threat.

ii) PORTERS FIVE FORCES MODEL

The Porters five forces model is a tool that places an effective role in analyzing a particular
industry (Porter, 2008). The components of the Porters five forces model are Threat of entrants;
Power of suppliers; Power of buyers; Threat of substitutes; and Competitive rivalry. The
identified components of the model are identified as factors that influence the performance of
industries. The identified factors can help Wello water wheels to design strategies that will
ensure the expansion of the business n the global market.
Threat of entrant:
Wello faces a high threat from entrants into the industry. The initial analysis of the global market
for Wello shows that the business has a profitable prospect. As such, industries with profitable
markets yielding high returns tend to attract new companies. It is hence expected that Wello will
have high competition within a few years of full operation since it has a very large market share
of an estimated 1.1 to 1.4 billion people worldwide.
Bargaining Power of supplier
The primary raw materials of Wello water wheels are plastic wastes. However, these will be
supplied by individuals from near the manufacturing plant. However, the supply of labour will be
comparatively cheaper and hence the power of suppliers will be very low in dealing with Wello.
Bargaining Power of Buyers
The bargaining power of buyers will be low since Wellos water wheels are innovative products
with the sole aim of transporting large quantities of clean water over long distances with ease. In
4

view of this, since clean water is a necessity, buyers will have no alternative than to purchase at
the companys price. Subsequently, Wello has put in place measures to ensure that cost of
production is minimized and hence selling cost will be at the minimal to meet the target market.

Threat of substitutes
The threat from substitutes is very minimal. Wellos water wheels are innovative products that
help transport large quantities of clean water over long distances with ease. Comparing the new
product with old receptacles for transporting water, Wellos water wheels are more efficient and
hence the threats of substitutes are low.
Competitive rivalry
The competitive rivalry that Wello is expected to face on the global market is low. These can be
achieved if Wello sustains its competitive advantage through innovation. Providing more
innovative products will certainly put Wello in a competitive advantage position. Also, Wello
stands a chance in ensuring reduced rivalry by protecting its innovative ideas through the use of
patents, trademarks, Copyrights; Trade dress unfair competition laws; and trade secrets.

TASK 2:
a) Identify the sources of information that would assist in developing an organisations
value proposition.
Access to quality information plays a vital role developing and implementing effective value
propositions for companies. None the less, the information must be carefully scrutinized to
ensure that they are credible, accurate and authentic.

Information for developed value proposition can be obtained from both internal and external
sources. The internal source of information includes information obtained from the various
departments of Wello. Such information will provide available resources and strategies for
developing quality products and services for customers (Low, 2002). Such information provides
management with accurate information to determine the levels of production; methods of
production; management of the general resources including employees. Through the internal
information, management of Wello can design and implement an effective value proposition that
assures customers of quality products and services that meet their needs and demands. Internal
information can also be generated from data collected by Wello to ascertain the level of
competition from other companies. In view of this, the company can re-strategize to identify and
implement an effective value proposition that categorically position them in a competitive
advantage position (Rintamaki et al, 2007).
According to Anderson et al (2007), external sources of information tend to compliment the
companys internal source of information for developing and implementing value propositions.
However, it is very important for Wello to ensure that information gathered from external sources
is from authentic and credible ones. Information from the United Nations as an external source
used by Cynthia Koenig to develop the companys value proposition was a step in the right
direction. The external sources of information help identify the types of customers and the target
market. Subsequently, the pricing policy developed by Wellos manager was mainly based on the
external source of information. Clearly, this shows that not only does external information help
identify the prospective customers but also helps determine the price to be paid for the
companys products and services delivered. The external sources of information also helped
identify the mode of manufacturing the companys products. Cynthia Koeng identified that
mobile manufacturing plants on rails will be used to produce the Wello Wheels for customers. As
such, the plants will be closer to customers and hence lower its cost of manufacturing.
Subsequently, the availability of external information on plastic waste was used as invaluable
information to collect raw materials for the manufacturing plant. The external information
equally helped Wello to identify the several locations in the world where the Wello wheels will
meet the needs and demands of its customers.

Both internal external sources of information are clearly complementary and ensure that
management decisions in developing and implementing successful value propositions. An
evaluation by Barnes et al (2009) identified value proposition as the promise to acknowledge and
deliver value. This is promised and achieved with the view that customers of a companys
products and services will experience and appeal high quality services and products. The use of
both external and internal sources of information show significant impact on value proposition in
providing an increase in market share and promoting competitive advantage.
b) Conduct a situational analysis for Wello and identify marketing opportunities and
threats facing the Non for profit organization.
Wello and the design and sale of the Wello wheels have a huge potential to succeed on the global
market. According to the UNDP report of 2006, about 1.1 to 1.4 billion people lack access to
portable and clean water. Clearly, with the Wello wheel in place, there is clearly a large market
for the company and its product. Providing quality, affordable and easy access to quality water
has been a priority for governments and several global organizations. However, its sustainability
has been questioned over the years. As such, Wello wheels have access to a large unexploited
market that can provide millions of dollars in revenue worldwide.
Also, the level of competition in the water supply market is very minimal to none. No company
has been clearly identified to supply products on household scale that allows women to easily
transport water over long distances in large quantities. This is expected to enable women spend
less time in providing their family with clean and large quantities of water within a short period
of time.
Also Wello has the opportunity of forming alliances and various business partnerships with
organizations that are embedded into the idea of women empowerment. Wellos product allows
women to provide their families with large amounts of clean water in short time periods. This
provides women the time to be engaged in different income earning activities to support their
families.

Another clear opportunity for Wello to be successful is the idea of providing clean and quality
water that promotes healthy living within communities. The World Health Organization report
(2007) identified that nearly 2 million people die of water borne related diseases. Hence, Wello
in providing the product to promote health will be endorsed and supported by the World Health
Organisation.
The opportunity of using recyclable plastic waste materials for production can also be identified.
The waste materials are cheap to come by. This will equally provide employment for individuals
who collect plastic waste for the company. Organisations who promote clean environments can
also be included as they provide support and funding for Wello to rid the environment of plastic
waste.
These opportunities clearly pushes Wello to be a global brand that is supported by organisations
such as the World Health Organisation; the United Nations and other Not Profit Organisations
that are embedded in the idea of encouraging women empowerment. Clearly, Wello and its
products can easily grow with support and funding from such organisations. Clearly, Wello has
several opportunities to be a global brand if it is well managed.
According to Kotler (2004), new businesses and business ideas are usually faced with several
threats that can lead to their collapse if not well managed. Some of the threats faced by Wello
include the following:
There is an eminent threat from competition. When other companies identify that the business
idea of Wello is viable, the number of competitors will be on the increase. This can force a
reduction in market share of the company.
Another threat will be support of governments of countries as Wello aims to break entry barriers
into unknown economical territories. The documentation required for establishing Wello in
different countries will differ thereby posing as a threat to the success of the company. Not to
mention, competition from local companies.

The availability of the clean water will equally be a threat to the success of Wello. In locations
where there is acute water shortage and requires people to travel over long distances will equally
not make Wello wheels not viable to be used. Especially in locations where water has to be
transported over hundreds or thousands of miles with access to cheaper transportation, Wello
wheels will not be a viable option.
c) Develop an integrated strategic marketing plan to promote Wello wheel to its
customers.
According to Clow and Baack (2007), Integrated Marketing Communication involves a
marketing plan that allows the company to communicate the same message over different
marketing and promotional tools. This ensures that a synergy effect is achieved in promoting the
brand and products of a company.
An integrated strategic marketing plan has been presented as follows:
Background of Wello: Wellos founder and CEO started the idea of developing and selling
Wello wheels to ensure women and children are able to transport large quantities of clean water
to their families. Wello was founded in January 2008 by CEO Cynthia Koenig. Wello
manufactures and distributes the water wheel which is able to collect close to 20 gallons of
water.
Target market: With water been a scare commodity that has eluded 1.1 to 1.4 billion individuals
worldwide, Wellos target market is all individuals and households that do not have access to
clean and portable water.
Market position: Wellos water wheel has several attributes from transporting clean and quality
water over long distances to saving time for women to engage in other income earning activities
to support the family. The Water wheel has a high competitive advantage as the company aims to
be a global brand that is supported by organisations such as the World Health Organization; the
United Nations and other Not Profit Organisations that are embedded in the idea of encouraging
women empowerment. Clearly, Wello and its products can easily grow with support and funding
9

from such organisations. Clearly, Wello has several opportunities to be a global brand if it is well
managed. These opportunities which include recycling waste materials and using them as raw
materials for production clearly positions the company as effective and highly competitive in its
industry.
SWOT (Strength; Weakness; Opportunity; and Threat) analysis: The SWOT analysis clearly
shows that Wello has several strengths such as a large demand for the product and effective and
productive working staff. There is also the availability and cheap raw materials for production.
The mobile manufacturing plant on rails is also a strength that allows the company to
manufacture its products at various locations at a cheaper cost. The weakness of Wello include
penetrating existing local markets where local manufacturers produce similar products at
relatively cheaper costs. Wello has several opportunities to access funds from several
organisations that are involved in providing quality water; improving health of individuals and
communities; women empowerment; and environmental cleaning. The threats to the success of
Wello are the increase in competition within the industry when other companies find the product
to be viable and investment friendly. Also, taxes and cumbersome documentation for foreign
companies who aim to enter into local markets can be a threat.
Objective of the Integrated Marketing Communication plan: The primary objective of the
Integrate marketing Communication system of Wello is to communicate the benefits and quality
of the Wello water wheels to its customers.
Marketing tools and strategies: The marketing tools to be used include Advertisement;
Personal selling; promotional sales; and public relations. Advertisement of the companys
products and its brand will be carried out using several media outlets such as radio, television,
newspapers and the internet. Since the target market tends to be comparatively poor and have
low educational background, Wello must use advertisement campaigns that such individuals can
equally have access to such as radio programmes in local languages. Promotional sales will
equally have a positive impact as price of products are usually cut down to ensure huge
patronage (Fill, 2001). Personal selling can equally be used especially in locations where media
coverage is low. Individuals and households can easily be contacted with the products of Wello
10

and its use and benefits well explained to them. Public relations can play a significant role in
Wellos marketing plan as any negative reportage about the brand and the products can be
rectified.
Budget allocation of marketing plan: The sales and marketing will device an effective and
implementable budget to market the products and services of Wello. The marketing budget must
be able to provide adequate profit that covers the cost of $38 per water wheel.
Periodic review of the plan: There must be a periodic review of the Integrated Marketing Plan
of Wello to ensure the plan is effective and revised on periodic bases.

TASK 3:
a) Use the marketing mix to analyse the design and innovation strategies used by Wello in
developing and improving the Wello wheel.
According to Duncan (2005), marketing mix involves providing quality products and services for
customers at affordable pricing at accessible locations. The original 4Ps of marketing have
gradually evolved into the 4Cs of marketing. The initial 4Ps of marketing mix include Product;
rice; Promotion; and Place. The 4Cs also include the Consumer; Cost; Convenience; and
Communication.
Consumer:

11

Wello and the design and sale of the Wello wheels have a huge potential to succeed on the global
market. According to the UNDP report of 2006, about 1.1 to 1.4 billion people lack access to
portable and clean water. Clearly, with the Wello wheel in place, there is clearly a large market
for the company and its product. Providing quality, affordable and easy access to quality water
has been a priority for governments and several global organizations. However, its sustainability
has been questioned over the years. As such, Wello wheels have access to a large unexploited
market that can provide millions of dollars in revenue worldwide. The estimated 1.1 to 1.4
billion people in need of clean and quality water will be the consumers of Wellos water wheels.
Cost:
The cost of manufacturing the water wheels will be lower than the selling price of $38 per
product. The lower cost of manufacturing can be associated with the strategy of using plastic
waste which is generally cheap and easy to come by. The idea of having localized manufacturing
plants can go a long way to reduce the cost of production as well as reduce the selling price. As
such, whilst the environment is been rid of its filth, environmentally friendly products are been
manufactured to provide easy transport for quality water.
Convenience:
With the localized strategy of manufacturing the water wheels close to customers, access to the
product will be convenient for customers. Subsequently, customers can request for specific sizes
that can be manufactured for them based on their need and how much they are willing to pay for.
With the global presence of Wello and its representative in every country or community it
operates in, access to information will be easy. Customers can easily interact with representatives
and customer care members who are available at all times to address their issues or any problems
arising from the use of the product.
Communication: Based on the use of the Integrated Marketing Communication strategy
developed and implemented by Wello, a combination of several marketing tools will be used to
communicate the benefits of the products to customers. The marketing tools to be used include
Advertisement; Personal selling; promotional sales; and public relations. Advertisement of the
companys products and its brand will be carried out using several media outlets such as radio,
12

television, newspapers and the internet. Since the target market tends to be comparatively poor
and have low educational background, Wello must use advertisement campaigns that such
individuals can equally have access to such as radio programmes in local languages. Promotional
sales will equally have a positive impact as price of products are usually cut down to ensure huge
patronage (Fill, 2001). Personal selling can equally be used especially in locations where media
coverage is low. Individuals and households can easily be contacted with the products of Wello
and its use and benefits well explained to them. Public relations can play a significant role in
Wellos marketing plan as any negative reportage about the brand and the products can be
rectified.
b) Advice the CEO on risks involved in not protecting innovations and evaluate
appropriate innovation protection methods.
Ruuskanen and Seppanen (2013) explained that protecting innovations is very vital in every
organization as it helps ward off stealing of original ideas and reducing competition. Patents are
monopoly rights that are granted by national and regional patent office to an inventor who has
created something new, useful and non obvious.
Protecting innovations is very important for businesses and their managers. Since there are
several risks associated with neglecting this necessity, managers tend to be faced with several
threats and challenges as their businesses grow. To prevent loss of the original idea of Wellos
water wheels of Cynthia Koeing to marketplace predators, there is the need for the innovation to
be protected. Hertzfeld et al (2006) explained that intellectual property stands to stolen and use if
not well registered and protected.
Subsequently, the Research Roundup (2014) explained that open innovation has a high risk of
breeding unexpected competition. In view of this, competition increases as the same idea is
reproduced under different brands and marketed against the original idea. This results in the
reduction in the market share of the original owners of the idea.
Another aspect of risk that affects unprotected innovation is the sustainability of the innovation.
The initial idea of Innovation is expected to be improved in developing a high quality brand for
13

the company. As such, an unprotected innovation implies there is a high risk of negative impact
on the companys brand. Companies are the risk of losing their brand and company image to
competitors when they fail to protect their innovations.
Gallie and Legros (2012) explained that a firm protecting their intellectual property implies the
company protecting the interest of its customers and market share. As an industry is adulterated
with the same idea under different brand names; companies with the initial idea risk losing their
customers to cheaper and less quality alternatives.
The risk of losing competent and productive employees is also common when innovations are
left unprotected. Competent employees can easily be lost to larger corporations when the
innovative ideas have been taken and production of products and delivery of services have begun
in full swing. Employees can easily be attracted to join successful companies.
Some innovation protection methods include the following: Patents; Trademarks; Copyrights;
Trade dress unfair competition laws; and trade secrets.
Patents are identified as rights granted by governments to prevent other parties from
manufacturing; marketing or using the inventions of another person or a group (Chesbrough,
2006). Patents are approved after an application has been put through and the office in charge of
patents has verified that the idea is new. Patents usually take a considerable amount of time
before they are approved. Patents allow original owners to sue and collect damages for using the
idea. As Wello applies for a patent, any new design on the products will be identified as part of
the original idea. Also, Wello can use the patents as a form or advertisement as they become the
exclusive owners of water wheels. Patents are generally legal in nature and require the services
of an attorney.
Trademarks are words, phrases or symbols that identify products in the market place. Trademarks
are similar to patents as they can be used as marketing tools. Trademarks are usually enforced
when the word, phrase or symbol have used for commercial production. Wellos trademark can
be established when the manufacturing of the water wheels start in large quantities.
14

A copyright on the other hand, prevents individuals and organizations from copying any writing
or artwork of Wello. When Wello completes its artwork and brand image, a copyright can be
filed at the appropriate office. It is hence necessary for Cynthia Koeing and the management of
Wello to ensure that any freelancer employed to design any artwork for the company is bound to
a contract stating the work belongs to the company.
Trade dress unfair competition laws involve designs, packaging, labels and color schemes for
Wello. The Trade dress unfair competition laws are automatic and do not require registration
with any legal office. Since Trade dress unfair competition laws have no legal backing, it will be
in the best interest of Wello to develop a distinctive product and package that can be publicized
with the least available budget.
Trade secrets entail all documents and pieces of information that Cynthia and the management of
Wello are working hard to conceal from the general public. No application needs to be filed.
Hence, it was not safe for Cynthia to share the companys secrets with a stranger on a flight.
Trade secretes can be used for protecting internal matters. However, it can be used an
advertisement tool that informs the public that Wello has the exclusive right to manufacture and
market the Water wheels.
TASK 4:
a) With reference to relevant theory, evaluate the global market potential the Wello Wheel
has for possible business expansion. Assess the types of information required in making
global marketing decision.
The Porters five forces model is a tool that places an effective role in analyzing a particular
industry (Porter, 2008). The components of the Porters five forces model are Threat of entrants;
Power of suppliers; Power of buyers; Threat of substitutes; and Competitive rivalry. The
identified components of the model are identified as factors that influence the performance of
industries. The identified factors can help Wello water wheels to design strategies that will
ensure the expansion of the business n the global market.

15

Threat of entrant:
Wello faces a high threat from entrants into the industry. The initial analysis of the global market
for Wello shows that the business has a profitable prospect. As such, industries with profitable
markets yielding high returns tend to attract new companies. It is hence expected that Wello will
have high competition within a few years of full operation since it has a very large market share
of an estimated 1.1 to 1.4 billion people worldwide.
Bargaining Power of supplier
The primary raw materials of Wello water wheels are plastic wastes. However, these will be
supplied by individuals from near the manufacturing plant. However, the supply of labour will be
comparatively cheaper and hence the power of suppliers will be very low in dealing with Wello.
Bargaining Power of Buyers
The bargaining power of buyers will be low since Wellos water wheels are innovative products
with the sole aim of transporting large quantities of clean water over long distances with ease. In
view of this, since clean water is a necessity, buyers will have no alternative than to purchase at
the companys price. Subsequently, Wello has put in place measures to ensure that cost of
production is minimized and hence selling cost will be at the minimal to meet the target market.

Threat of substitutes
The threat from substitutes is very minimal. Wellos water wheels are innovative products that
help transport large quantities of clean water over long distances with ease. Comparing the new
product with old receptacles for transporting water, Wellos water wheels are more efficient and
hence the threats of substitutes are low.
Competitive rivalry
The competitive rivalry that Wello is expected to face on the global market is low. These can be
achieved if Wello sustains its competitive advantage through innovation. Providing more
innovative products will certainly put Wello in a competitive advantage position. Also, Wello

16

stands a chance in ensuring reduced rivalry by protecting its innovative ideas through the use of
patents, trademarks, Copyrights; Trade dress unfair competition laws; and trade secrets.

Fig 1: Diagram of Porters five forces analysis

Source: http://www.learnmarketing.net/porters_five_forces.jpg
Getting information is very relevant to corporate expansion especially to establish once presence
in the competitive global market as planned by Wello. Information can be obtained from both
internal and external sources to enable Wello expand on the global market to enable them assert
their brand in the global market. The internal source of information includes information
obtained from the various departments of Wello. Such information will provide available
resources and strategies for developing quality products and services for customers (Low, 2002).
Such information provides management with accurate information to determine the levels of
production; methods of production; management of the general resources including employees
that they plan to recruit for their global expansion strategy. Through the internal information,
management of Wello can design and implement an effective value proposition that assures
customers of quality products and services that meet their needs and demands. Internal
information can also be generated from data collected by Wello to ascertain the level of
competition from other companies. In view of this, the company can re-strategize to identify and
implement an effective value proposition that categorically positions them in a competitive
advantage position on the global market (Rintamaki et al, 2007). The company will also need to
undertake an in-depth analysis of their sources of finance for their global expansion strategy
17

because to move to another continent and country needs a huge capitalization and there is the
need for the company to establish their sources of finance before making any decision to expand
into the global market.
According to Anderson et al (2007), external sources of information tend to compliment the
companys internal source of information in order to explore the global market. However, it is
very important for Wello to ensure that information gathered from external sources is from
authentic and credible ones. Information from the United Nations as an external source used by
Cynthia Koenig to develop the companys value proposition was a step in the right direction. The
external sources of information help identify the types of customers and the target market.
Subsequently, the pricing policy developed by Wellos manager was mainly based on the external
source of information. Clearly, this shows that not only does external information help identify
the prospective customers but also helps determine the price to be paid for the companys
products and services delivered. External sources of information tend to educate Wello on the
various cultural issues in the various communities on the global market. It helps companies
survive as they are able to design tailor made products that meet the demands of specific
communities and cultures on the global market. The external sources of information also helped
identify the mode of manufacturing the companys products.
The external source of information will also enable Wello to determine the security situation in
the projected country of investment. The CIA and well established intelligence organisations like
Interpol can also be a source of information especially when it comes to finding out the sort of
governance in place, crime rate, organized crime incidence rate and the general security situation
in the proposed country of investment. When Wello has this information regarding the security
situation, it will guide them as to whether to invest in that country or not.
Cynthia Koeng identified that mobile manufacturing plants on rails will be used to produce the
Wello Wheels for customers. As such, the plants will be closer to customers and hence lower its
cost of manufacturing. Subsequently, the availability of external information on plastic waste
was used as invaluable information to collect raw materials for the manufacturing plant. The

18

external information equally helped Wello to identify the several locations in the world where the
Wello wheels will meet the needs and demands of its customers.
Both internal external sources of information are clearly complementary and ensure that
management decisions in developing and implementing successful value propositions. An
evaluation by Barnes et al (2009) identified value proposition as the promise to acknowledge and
deliver value. This is promised and achieved with the view that customers of a companys
products and services will experience and appeal high quality services and products. The use of
both external and internal sources of information show significant impact on value proposition in
providing an increase in market share and promoting competitive advantage.
b. According to Cynthia, CEO of Wello, there is great potential for the Wello Wheel in
African, Latin America, Asia and Eastern Europe. Apply appropriate global marketing and
communication strategies to one of these markets in promoting the Wello Wheel.
Consideration should also be given to issues the organization will likely face in going global
and make suggestions to mitigate them.
According to the World Bank report on poverty (2010), about 1,215 million people live on less
than $1.25 a day. In 2011, an estimated 46.8% of people living in sub Saharan Africa were living
on less than $1.25 a day. The water crisis within the region has worsened over the years within
the sub region as a result of excessive draught and poor government policies to improve access to
portable and clean drinking water.
Irrespective of the size of a company, Internationalization has become very important to the
competitiveness of businesses. Global marketing and communication strategies have been
adopted by several small companies with the aim of taking advantage of cross border activities.
These have been planned and implemented to ensure growth of revenue. Also, the exchange of
knowledge through such activities leads to the enhancement of capabilities of the companies as
well as ensuring long term competitiveness of the company.
The Internationalization of Wello in Africa is a wise step since its CEO Cynthia has spent some
time in Africa and has first hand information about the acute water shortage issues in the
19

continent. In the Internationalization process of Wello, Cynthia expects to establish

manufacturing plants in the various African countries Wello intends to operate in. However,
Wello is expected to face some challenges in the Internationalization process. The high cost of
Internationalization process is the first and foremost challenge. High cost in transporting
manufacturing units and establishing Wello in Africa is a foreseen challenge. Other initial costs
such as carrying out market analysis overseas; consultancy services for legal aid; translation of
legal documents; expenses associated with transportation; and the high risk associated with
financing in Africa as a result of political turbulence can affect Wellos internationalization.
However, Wello and Cynthia stand the chance of passing this barrier with the opportunity to gain
funding support from other organisations such as Google, Echoing Green; and other
organisations that are interested in women empowerment and environmental protection.
The 2002 ENSR survey identified that only a few companies with an employee size of 50 have
the intention of Internationalizing (European Commission, 2003). However, the results also
identified that high growth oriented companies tend to be exceptions. As such, until Wello
strategizes to become a high growth oriented firm, this will be a challenge to its success on the
global market. Subsequently, the domestic market of Africa will equally have an impact on the
Internationalization of the water wheels. Wello, hence, must conduct a thorough market research
to ascertain the situation of the domestic market and ensure strategies are put in place to ascertain
its success.
Internationalization of Wello Water wheels can be impacted by other issues such as cultural
differences; the lack of managerial skills and access to accurate and credible information;
insufficient networks; and language barriers (Hutchison et al, 2007). The wide range of language
dialects in Africa can be a huge barrier to Wello. However, with the knowledge and skill acquired
by Cynthia Koeing, CEO of Wello, during her MBA study, the issues of managerial skills and the
ability to evaluate and access credible information can be overcome. Also, the MBA program
opens a series of networks for its students to interact with. The available networks will enable
Wello interact with former students of the MBA program who can link Wello to profitable
networks.

20

TASK 5
a. Wello is a not-for-profit organisation. When it comes to social enterprises, two core
sectors that come to mind are SMEs and the public sector. The operational requirements
and strategies developed for these sectors are very different. Compare and contrast the
differences in marketing strategy development in the Non for profit with that of SMEs and
Public sector organisation.
Not for Profit Organisations are generally different in their operations and management as
compared to Small Medium Enterprises (SMEs). Whilst Not for profit organisations aim at
improving social and economic welfare of society, SMEs tend to aim at generating profits. The
general wellbeing of society is a primary aim of Not for Profit Organizations. However, it tends
to be more of a Corporate Social Responsibility for SMEs and Public sector organizations.
In relation to competency, Not for Profit Organisations such as Wello will solely rely on its CEO,
Cynthia Koeing, for decision making and design of strategies to propel the company to a highly
competitive position in its industry of operation. In the area of SMEs and Public sector
organisations, a wide range of expertise can be made available for strategic planning and
decision making. Also, since there is generally more resources available, SMEs and Public
Sector organisations have the ability to afford the services of experts to plan and develop
strategies to ensure competitive advantage in their industry of operation (Petrakis and Kostis,
2012).
Cynthia Koeing, the CEO of Wello, clearly identified that initially, she was the sole financier of
the company. She is however, working earnestly to secure funds and sponsorship packages from
other organisations to run the firm. This clearly shows that funds for running Not for Profit
Organisations are generally generated through founders personal funds and sponsorship
21

packages from large corporations who consider such an obligation as promoting their Corporate
Social Responsibility (CSR). In the area of SMEs and Public Sector Organizations, funds are
internally generated from profits of operating the business or from other external sources such as
loan from banks and overdrafts (Petrakis and Kostis, 2012). Also, Public Sector Organizations
have the alternative of issuing shares to generate funds for their operations.
Marketing plan for Not-for-Profit Organisations such as Wello is generally limited to funds
available. Subsequently, the marketing plans tend to limit the price at which products are sold
and services are delivered. Wellos marketing plan is expected to be limited to the funds available
to the company whilst the $34 price tag for each Water wheel is not to generate profit but to
make a considerable amount of revenue that ensures that the company does not collapse. The
marketing plans are usually held on a small scale and generally designed by the CEO. In the case
of SMEs and Public sector Organisations, their marketing plans and control are detailed and aim
to target a larger market share that requires the services of experts to design, implement and
control.
Managerial roles for Not for Profit Organisations are usually limited to the founders and owners
of the business. In cases where the managers do not have required skills and knowledge to
manage the business, its objectives may not be achieved and the company end up collapsing.
Public Sector organisations and SMEs can hire managers with the required skills to run the daily
activities of the firm.

c. Identify and explain the challenges Wello faces in implementing marketing strategies.
Evaluate how learning from marketing in the SME and Public sector can help improve
strategies used by Wello.
With the size of Wello, it is expected that the company will face several challenges in
implementing its outlined marketing strategies. Funding for the implementation of the marketing
strategies will impact it since funds for the daily operations of the company is difficult to come
by.

22

The size of the company will also impact the marketing strategy. Wello in the initial stages will
not be able to manufacture large quantities of products as well as market its products. The Global
marketing and communication strategies have been adopted by several small companies with the
aim of taking advantage of cross border activities. These have been planned and implemented
to ensure growth of revenue. Also, the exchange of knowledge through such activities leads to
the enhancement of capabilities of the companies as well as ensuring long term
competitiveness of the company.
The high cost of developing and implementing marketing strategies process is a primary
challenge. High cost in transporting manufacturing units and establishing Wello in Africa is a
foreseen challenge. Other initial costs such as carrying out market analysis overseas; consultancy
services for legal aid; translation of legal documents; expenses associated with transportation;
and the high risk associated with financing in Africa as a result of political turbulence can affect
Wellos internationalization. However, Wello and Cynthia stand the chance of passing this barrier
with the opportunity to gain funding support from other organisations such as Google, Echoing
Green; and other organisations that are interested in women empowerment and environmental
protection.
The 2002 ENSR survey identified that only a few companies with an employee size of 50 have
the intention of Internationalizing (European Commission, 2003). However, the results also
identified that high growth oriented companies tend to be exceptions. As such, until Wello
strategizes to become a high growth oriented firm, this will be a challenge to its success on the
global market. Subsequently, the domestic market of Africa will equally have an impact on the
Internationalization of the water wheels. Wello, hence, must conduct a thorough market research
to ascertain the situation of the domestic market and ensure strategies are put in place to ascertain
its success.
Marketing strategies of Wello Water wheels can be impacted by other issues such as cultural
differences; the lack of managerial skills and access to accurate and credible information;
insufficient networks; and language barriers (Hutchison et al, 2007). The wide range of language
dialects in Africa can be a huge barrier to Wello. However, with the knowledge and skill acquired
23

by Cynthia Koeing, CEO of Wello, during her MBA study, the issues of managerial skills and the
ability to evaluate and access credible information can be overcome. Also, the MBA program
opens a series of networks for its students to interact with. The available networks will enable
Wello interact with former students of the MBA program who can link Wello to profitable
networks.

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