SWOT & Marketing Concepts

Case Study 1 Aotea Questions

Question 1: Aotea SWOT Analysis with Marketing Concept Connections (24 marks)

You are required to complete a SWOT Analysis for the New Zealand company Aotea. For each part of your analysis - Strengths, Weaknesses, Opportunities, and Threats - you must:

• Provide three (3) points.
• Use bullet points for each point.
• Write a clear explanation for why each point you have provided is a strength, weakness, opportunity, or threat for Aotea.
• Support your explanation by linking it to a relevant marketing concept from the course resources (textbook chapters, lecture recordings, Q&A/workshop recordings from Chapters 1 to 5).
• Not refer to or reference the textbook or lecture content about the SWOT tool (eg, Chapter 2.2 SWOT Analysis). Focus instead on using marketing concepts (like concepts such as segmentation, the 4Ps, or macroenvironmental forces) to support your explanation of your points.

Tip: You are being assessed on how well you apply marketing concepts to your analysis and your understanding of Aotea. Use the guide and examples provided to see how to properly explain and reference your ideas.

Word count guide: Aim for approximately 300 words per section of the SWOT Analysis, which adds up to about 1,200 words total for Question 1.

Strengths (6 marks)

List three (3) current strengths of Aotea. For each, explain why it is a strength by connecting it to one or more marketing concepts (excluding coverage of the SWOT Analysis) from the course resources (Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4) 

Strengths

1. By maintaining all parts of its business in-house, Aotea retains its vertical integration process.

Aotea's vertical integration process gives it a sustainable competitive advantage. It gives the brand a chance to work in a better way and differentiate itself from its competitors. From a product point of view, this control provides authenticity of the brand. It has been noticed that competitors utilizing the contract manufacturing process cannot match the brand’s authenticity. Aotea’s premium positioning and unique value proposition are supported by its own management (Openstax, 2023). Aotea’s combined operations reflect its unique and valuable organizational capabilities that create barriers to entry for competitors attempting to replicate this business model.

1. Aotea has achieved strong brand differentiation through combining traditional Rongoā Māori.

The cultural authenticity addresses the positioning concept by establishing a distinct identity in customers' thoughts as an indigenous wellness brand with diverse cultural origins and traditions. The brand is based on founder Tama Toki’s background on Great Barrier Island and his grandmother’s teachings in traditional medicine (idealog, 2024). It inspires him to create a psychological connection and build high brand equity. His brand highlights the loyalty for their customers and gives premium pricing power (Elfadel et al. 2024, p.90). From a market segmentation standpoint, this authentic approach fulfills the demand of those who are aware of the value of cultural significance and authenticity. Aotea’s storytelling through different social media platforms creates a distinctive brand personality. It helps to create an emotional connection with its target customers who always prefer authentic cultural heritage.

1. Aotea has developed a premium distribution strategy through managing its retail channels.

Aotea highlights its effective 4Ps strategy that strengthens its brand positioning. It also targets its high-value customers. The primary concept store in Auckland’s commercial Bay offers a highly experiential retail experience that helps to engage customers with the brand’s story, also supporting Aotea’s premium positioning in a renowned location (Yusof et al. 2025, p.79). The collaboration with Air New Zealand, which includes Aotea items in Business Premier and Premium Economy care kits, exposes the company to affluent foreign visitors who are perfect target customers while also providing implicit support for the brand. This limited distribution technique supports a premium pricing strategy by maintaining brand exclusivity. It avoids mass-market channels that may damage brand image.

Weaknesses (6 marks)

List three (3) current weaknesses of Aotea. For each, explain why it is a weakness by connecting it to one or more marketing concepts (excluding coverage of the SWOT Analysis) from the course resources (Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4) 

Weaknesses

• Aotea’s commitment to make its every product on the Great Barrier Island creates limitations in the production capacity.

Aotea’s operational structure introduces its limited growth potential and does not capitalize on the fast market opportunity. From the supply chain management standpoint, focusing on handcrafting every product on a remote island reduces production volume (Ndzabukelwako et al. 2024, p.98). Their marketing strategy raises per-unit costs and lowers the ability of the company to respond quickly to seasonal peaks. Aotea’s handcrafted techniques truly support the band’s cultural reports and distinctions. It exposes the company to operational risks in terms of production speed. The geographic remoteness of Great Barrier Island creates considerable logistical issues that felt the adverse impact on operational efficiency (Pangarkar & Prabhudesai, 2024, p.690). The production limitation has a direct impact on the product element of the marketing mix by potentially limiting product availability. It increases lead times from order to delivery, resulting in stockouts during peak demand periods. It leads to missed sales opportunities and increases frustration among the customers.

• Aotea’s pricing strategy starts from $20-$70 for day-night face creams and oils that position the brand in the luxury segment.

Aotea’s high price point restricts market accessibility for all. It restricts Aotea’s overall market size. Their premium pricing excludes substantial categories of price-sensitive consumers who may be interested in natural, culturally authentic skincare but are unable to afford the luxury costs. The premium pricing strategy supports the positioning of the brand as a luxury product that reflects the quality of the brand and its production costs (Eryogia et al. 2024, p.980). It also creates a significant barrier to trial for potential new customers who are interested in the brand but unwilling to spend $70 on face oil without any previous experience. Due to the price flexibility of demand for premium skincare, Aotea may struggle to achieve significant market share in mass-market channels and is vulnerable to economic downturns when consumers limit their spending on luxury items in favor of cheaper alternatives.

• Aotea operates with a limited product portfolio that focuses on skincare and the honey category.

From a product portfolio management viewpoint, its focus makes the company extremely vulnerable to category-specific challenges such as shifting consumer preferences toward different beauty trends(idealog, 2024). It increases competitive pressure in the natural skincare category, which affects skincare products and honey production. The narrow product mix also limits potential for cross-selling complementary products (Adeniran et al. 2024, p.899). It lowers the average transaction value per customer and inhibits the brand’s ability to serve clients at different times and needs during their daily routines. The proposed Aotea Energy brand extension acknowledges this weakness and aims to expand into renewable energy solutions.

Opportunities (6 marks)

List three (3) future opportunities for Aotea. For each, explain why it is an opportunity by connecting it to one or more marketing concepts (excluding coverage of the SWOT Analysis) from the course resources (Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4). 

Opportunities

• The beauty and personal care market is experiencing significant growth. Customers are demanding sustainable beauty products whose ingredients are sourced ethically.

Nowadays, customers are increasingly preferring those firms that demonstrate a true commitment to using sustainable products. They mostly prefer ethically sourced ingredients and cultural authenticity. This sociocultural shift reflects a quickly developing market sector that perfectly complements Aotea's current position, allowing the company to gain market share without committing costly repositioning or fundamental changes to its corporate identity. From a market opportunity analysis standpoint, increased consumer awareness of ingredient safety (Nwosu et al. 2024, p.95). Now, Gen Z and millennials are more aware of the environmental effects. They always try to follow up the supply chain ethics that are gradually expanding the total addressable market for premium natural skincare.

• Aotea has the opportunity to expand into international markets, specifically in North America, the Asia Pacific, and Europe.

New Zealand products have an indigenous heritage and use natural ingredients for manufacturing products. It provides benefits from a strong country-of-origin that has an impact on international markets. This results in positive brand connections with purity. The "Made in New Zealand" label offers strong positive associations that can be strategically used in international marketing plans to set Aotea apart from local competitors in target markets (idealog, 2024). Some major areas, Asia-Pacific, North America, and Europe, have shown significant demand for premium natural skincare products, with consumers prepared to pay higher costs for authentic, sustainable brands with engaging origin stories (Qiu et al. 2024, p.588). Aotea’s existing agreement with Air New Zealand provides a well-established platform for increasing worldwide brand recognition among high-value international travelers who have direct involvement with the products. Geographic expansion into new international markets offers amazing revenue growth potential without the need for new development of the product.

• Aotea planned to expand its market into pharmacy retail and create strategic partnerships.

The pharmacy channel growth is a strategic distribution plan with potential that offers numerous advantages. From a channel strategy standpoint, pharmacy placement would effectively supplement Aotea’s existing retail and direct-to-consumer channels while reaching new customer segments. It particularly highlights those who actively shop in pharmacies for solutions to specific skin concerns and value the implicit professional support.

Threats (6 marks)

List three (3) future threats for Aotea. For each, explain why it is a threat by connecting it to one or more marketing concepts (excluding coverage of the SWOT Analysis) from the course resources

(Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4).

Threats

• Aotea faces intense competition from multinational corporations.

The skincare industry’s competitive environment is characterized by relatively low entry barriers. There are numerous well-established companies and potential consumers. The increasing number of competitors aiming to profit from sustainable beauty trends. According to Porter's five Forces framework analysis, the industry's competitive intensity is extremely high, with competitors ranging from multinational beauty corporations (Nilsson & Palm, 2024, p.86). Aotea's international competitors have far greater resources for R&D, marketing, and advertising, creating a challenging market for Aotea. These competitors can rapidly adapt successful trends like natural ingredients, environmental packaging, and indigenous beauty practices, it creates challenging situation for Aotea.

• Economic fluctuations create a challenging situation for market expansion.

As ahigh-end luxury brand, Aotea is especially subject to economic changes and macroeconomic forces that diminish consumer discretionary income and shift spending priorities to critical services. The economic macroenvironmental force includes factors such as GDP growth rates, unemployment rates, and inflation, all of which have a direct impact on non-essential goods purchases, $70 face oils, and $60 night creams (idealog, 2024). During economic uncertainty, consumers of all income levels typically trade down to more affordable alternatives. It reduces the frequency of luxury purchases that directly felt the adverse impact on Aotea’s profitability.

• There are increasingly complex regulatory environments for sustainability.

The legal and regulatory environment for skincare and cosmetic products is getting increasingly complex. It requires stronger standards for ingredient safety testing, accurate product labeling, and verification of sustainability claims. Operating in multiple geographic markets, New Zealand, Australia, and the United States, exposes Aotea to varying and sometimes conflicting regulatory frameworks, each with its own set of compliance requirements, testing standards, documentation requirements, and associated costs for meeting regulatory standards (Re et al. 2025, p.89). Political or legal macroenvironmental forces include potential future changes to natural product regulations, restrictions on specific botanical ingredients due to conservation concerns, and clinical testing requirements that may be prohibitively expensive for a small business.

Question 2. How Aotea Delivers High Customer Value (12 marks)

The 5-step Marketing Process includes:

1. Understanding the marketplace and customer needs
2. Designing a customer-driven marketing strategy
3. Delivering customer value
4. Building strong customer relationships
5. Capturing value in return

In this question, you are focusing on Step 3 – Delivering customer value.

What to do:

• Explain how Aotea delivers high customer value.
• Support your explanation with a specific example from Aotea’s business practices.
• Clearly link the relevant marketing concepts in your answer to the course resources

(Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4).

• Make sure to reference the relevant parts of the course resources following the formatting provided in the guides below.

Tip: Don’t just describe what Aotea does - discuss how it connects to the marketing theory and concepts we’ve studied in the course.

Word count guide: Aim for approximately 350 words

 Aotea gives customers many good things by creating a really great plan for customer value. This plan makes sure that the product's real-world uses go well with the way customers feel, and their beliefs are important. The result is that customers get everything they want, and the good things they get are more than the money they spend (Oyekunle et al. 2024, p.98). Customer value is mainly the difference between all the good things a customer thinks they are getting and all the costs they have when they buy something. Aotea makes this value even better by using different plans that come from marketing ideas and the main ways to create value.

Aotea provides great functional value within the 4Ps framework by creating therapeutic skincare products using bioactive indigenous New Zealand botanicals that have been scientifically proven. Their Bioactive MĀKŪTM blend of harakeke, mānuka, kawakawa, kūmaraho, has been scientifically shown to deliver anti-inflammatory and skin healing benefits (Kutip et al. 2025, p.905). This generates tangible product performance value, supporting the premium price point. Aotea offers more than just utilitarian benefits.  Its authentic cultural story connects the client to traditional Māori healing (rongoā Māori) and the unique ecosystem of Great Barrier Island. This emotional and cultural component raises a basic skincare purchase to a meaningful experience that aligns with the client’s beliefs. It results in psychological advantages that go far beyond product efficacy.

Aotea’s fully circular production process and transparent supply chain management are two specific examples of the way it delivers value. Aotea generates both environmental and customer value by returning plant byproducts to the land as compost and resulting nutrient-rich water from steam distillation as functional ingredients in products (Petänen et al. 2024, p.654). This strategy provides ethical value to loyal customers who increasingly base their purchasing decisions on environmental impact and corporate responsibility. Customers have the satisfaction of supporting a truly sustainable business strategy rather than the superficial “greenwashing” promises that are widespread in the beauty sector. The solar-powered operations and total vertical integration create authenticity, which improves the brand’s value proposition.  

Aotea provides value through its distribution strategy, which includes several easy purchasing methods as well as maintaining a unique brand experience. Simultaneously, the e-commerce platform provides convenience to both domestic and international clients who prefer online buying (Karami et al. 2024, p.963). The strategic placement in Air New Zealand’s premium grooming kits adds value by offering product trials in a luxurious setting that promotes quality perceptions. The multi-channel approach increases accessibility while ensuring each interaction provides equal brand value.

Question 3. Aotea and the Societal Marketing Concept (12 marks)

Aotea integrates tikanga Māori (Māori values and customs) and a strong focus on sustainability throughout its operations and brand identity.

What to do:

• Explain how Aotea’s approach reflects the societal marketing concept.
• Include a specific example from Aotea’s business practices to support your explanation.
• Show your understanding of the societal marketing concept by discussing the connection of the marketing concepts in your answer to course resources (Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4).
• Make sure to reference the relevant parts of the course resources following the formatting provided in the guides below.

Tip: The societal marketing concept is about balancing company profits, customer satisfaction, and the long-term well-being of society. Think about how Aotea’s values and actions align with this.

Word count guide: Aim for approximately 350 words

 Aotea demonstrates the societal marketing concept by balancing three essential factors, which are company profits, the requirements of the customers, and their satisfaction, and the society's long-term well-being. The societal marketing concept goes beyond traditional marketing by acknowledging that firms have societal duties beyond immediate consumer happiness and profit generation (Velmurugan et al. 2025, p.90). The theory encourages businesses to provide value in ways that sustain both the customer’s and society’s well-being. It addresses possible conflicts between short-term consumer desires and long-term social service.

Aotea’s implementation of tikanga Māori (Māori values and customs) demonstrates this idea in action. Tikanga principles highlight respect, consensus building, care, balance, building relationships, and intergenerational equity. These are naturally aligned with the societal marketing concept. It emphasizes the long-term social welfare. By basing business decisions on cultural values rather than only economic objectives, Aotea ensures that its commercial activities suit consumer requirements while also generating sustainable profits and positively contributing to environmental and social results (Wan et al. 2024, p.982). This approach represents the understanding that economic success and societal well-being have an unbreakable connection rather than competing goals.

Aotea shows its focus on helping society. This company gives scholarships to young Māori and helps with local employment on Great Barrier Island. This plan helps the community prepare for the future by helping people get an education and making the economy better in a place (Openstax, 2023). Aotea chooses to value the community’s well-being. This idea of societal marketing highlights that businesses should think about the way their actions affect society.

Aotea’s circular system shows the way societal marketing cares about environmental health. Plant byproducts are transformed into fertilizer that helps the earth. This regenerative strategy fulfilled society’s long-term interest in environmental preservation while also adding customer value through true sustainability practice, which conscious customers are increasingly demanding. The solar-powered operations reduce environmental impact. It lowers the long-term energy costs (Rathobei et al. 2024, p.965). It highlights the way environmental responsibility and corporate success can support rather than compete. Aotea’s strategy indicates that the concept of societal marketing is more than theoretical concepts. It is also a practical business philosophy. Aotea integrates tikanga Māori values and sustainability commitments into its core business model that achieve the goal of creating shared value by serving company interests, the requirements ofthe customers, and societal wellbeing that support long-term business sustainability.

Question 4. Using Secondary Data to Understand Consumer Attitudes (12 marks)

Aotea wants to better understand how customers feel about products based on traditional Māori healing.

What to do:

• Describe one (1) way Aotea could use secondary data to learn about customer attitudes toward these products.
• Include a specific example of the type of secondary data they could use.
• Discuss the connection of the marketing concepts in your answer to course resources

(Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4).

• Make sure to reference the relevant parts of the course resources following the formatting provided in the guides below.

Tip: Secondary data is information that already exists - Aotea would not need to collect it themselves. Think about where this data might come from and how it could inform their marketing decisions.

Word count guide: Aim for approximately 350 words

 Aotea could get some helpful information by looking closely at existing market research papers and industry studies. These explore people’s opinions about beauty products that are manufactured with natural and locally sourced ingredients. The ingredients are typically focused on health. The information is collected by different groups for their own use, which can then be used to help answer new research questions. This method has significant advantages because it is cost-effective, along with saving time.

An example of helpful existing information includes business studies released by research firms to explore customer behaviors within the natural and organic skincare market. This information contains statistical data about the behaviors of the customers and demographic information about people who purchase natural beauty products. The data also highlights the customer’s psychographic details regarding the values and beliefs that affect their shopping decisions. Aotea can get access to these studies using business databases, industry organizations, or by purchasing them directly from research firms.

This secondary data would enable Aotea to understand market attitude without having to pay a lot for new research. It gives basic knowledge and finds gaps in the data that might require primary research (Wang et al. 2024, p.90). This information could show the group of people who are interested in buying the products. It helps to know about the consumer attitude toward indigenous wellness practices in different markets.

Aotea could also utilize this secondary data to inform decisions about dividing customers. It helps to detect the target customer group. Aotea can improve its marketing messaging by identifying consumer segments with a positive view towards rongoā Māori-based products. The information could inform product development decisions by indicating the characteristics of traditional Māori medicine are most attractive to customers or which product categories offer the most growth possibilities (Pier, 2024, p.58). Aotea should know the issues with the data they have now, mostly because it was put together for other purposes. These might not be a perfect fit for their preferences about traditional Māori products. The facts might lack specific information on the New Zealand market or specific Māori cultural things. Despite these problems, secondary data provides a cost-effective way to understand customer attitudes. It can guide subsequent primary research to address the remaining questions.

Question 5. Responding to a Macroenvironmental Force (12 marks)

Aotea’s marketing is influenced by changes in things like cultural values, consumer demand for ethical brands, and technological developments.

What to do:

• Choose one (1) macroenvironmental force (e.g., cultural, technological, economic, political, natural, or demographic).
• Explain how Aotea could respond to a change in this force in its marketing strategy.
• Use a specific example related to Aotea’s business.
• Discuss the connection of the marketing concepts in your answer to course resources

(Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4).

• Make sure to reference the relevant parts of the course resources following the formatting provided in the guides below.

Tip: The macroenvironment includes the broader forces that affect all businesses. Think about how one of these forces is relevant to Aotea and how it shapes their marketing decisions.

Word count guide: Aim for approximately 350 words

Selection of one macroenvironmental force

Aotea could respond strategically to cultural macroenvironmental changes. It is particularly expanding the worldwide movement for decolonization and recognition of indigenous knowledge systems in wellness and healthcare. Aotea's core identity is based on rongoā Māori. It is a traditional Māori healing procedure that follows the indigenous botanical knowledge. These allow the company to grow cultural appreciation for indigenous knowledge.

Explanation of the way Aotea could respond to a change in this force in its marketing strategy

The cultural change toward valuing indigenous knowledge is both an opportunity and a responsibility for Aotea. Consumers worldwide are becoming more aware of indigenous rights. They always focus on cultural authenticity and the importance of proper representation.  This cultural shift has a direct impact on customer attitudes (Openstax, 2023). It helps in making shopping decisions, specifically among the younger generation. It also highlights socially conscious demographics that research brand authenticity and ownership before making purchases.

Specific example related to Aotea’s business

Aotea could deal with this wider issue by making its general advertising and communication plans better. So, it can more freely explain to customers about Māori cultural beliefs, how it fairly obtains traditional knowledge, and the important difference between true native businesses and those just using the culture. Aotea could add more educational content about Māori cultural rules, and some local plants are important for traditional-style healing, and the way the company ensures cultural rules are followed when collecting and making things by expanding its online journal articles and social media posts. This might have videos of respected Māori older people discussing old Māori healing methods. Their actual views of cultural practices used in the company's work, and regular news on the way the money made helps Māori communities.

The connection of the marketing concepts to the course resources

From a positioning standpoint, this proactive approach would enhance Aotea’s competitive distinction by clearly distinguishing the brand from competitors that may use New Zealand botanicals without actual indigenous ownership or cultural grounding. The improved cultural communication would strengthen Aotea’s distinct value. It strengthens emotional relationships with customers who value supporting authentic indigenous businesses. This method is consistent with the relationship marketing concept of establishing trust and long-term loyalty through transparency and education rather than just transactional transactions.

Question 6. Choosing a Growth Strategy for Aotea (12 marks)

Aotea is looking for ways to grow its business while staying true to its values and strengths.

What to do:

• Choose one (1) growth strategy from the Product/Market Expansion Grid (market penetration, market development, product development, or diversification).
• Describe how Aotea could use this strategy to grow its business.
• Explain why this strategy is a good fit based on Aotea’s current values and capabilities.
• Discuss the connection of the marketing concepts in your answer to course resources

(Textbook, lecture recordings and Q&A/Workshop recordings for Topics 1 to 3 and Chapters 1 to 4).

• Make sure to reference the relevant parts of the course resources following the formatting provided in the guides below.

Tip: Think about what Aotea already does well and how that could help them to grow.

Word count guide: Aim for approximately 350 words

Selection of one growth strategy from the Product/Market Expansion Grid

Aotea should create a plan to grow its business by selling in new places, using the Product/Market Expansion Grid (Ansoff Matrix), by offering the products it already has to new countries, specifically trying to reach rich people who buy natural beauty items in Asian countries (Naim, 2024, p.87). This plan to grow the business indicates selling the products they now have to new places or kinds of shoppers, which is a way to grow that has some risk, using the products that the company already sells well, while also finding new groups of people to buy them.

Description of the way Aotea could use this strategy to grow its business

This strategy is a great match for Aotea's current ideals and capabilities for a variety of effective reasons. Aotea's existing goods have been proven in the New Zealand market, with established products, manufacturing methods, and brand positioning that do not require significant changes. The company's true Māori history and sustainable manufacturing methods attract a high-standard group of customers (Aditiya & Kirana, 2025, p.79). New Zealand products, particularly those with indigenous heritage and natural botanicals, benefit from strong country-of-origin effects in Asian markets, where “made in New Zealand” branding conveys associations of environmental authenticity that result in premium pricing.

The reason this strategy is a good fit is based on Aotea’s current values and capabilities

From an implementation standpoint, Aotea might carry out this market expansion strategy by collaborating with premium distributors or retailers in key Asian markets. The company has already proved success in strategic partnerships through its engagement with Air New Zealand, demonstrating its ability to identify and work with partners who share brand values (Putra et al. 2024, p.88). Aotea could establish an important retail presence in key cities, Tokyo, Singapore, Seoul, possibly through temporary locations or partnerships with established luxury department stores that provide access to financially secure target customers without requiring a large capital investment in independent retail infrastructure.

The connection of the marketing concepts to the course resources

This strategy correlates with Aotea’s sustained competitive advantage, as the brand’s unique cultural story, vertically integrated operations, and loyalty to tikanga Māori are difficult to replicate by local competitors in new markets. The market development strategy also takes into account Aotea’s operational limitations; the company’s capacity is limited by handcrafting products on Great Barrier Island, which significantly increases product variety, or entering entirely new categories would put a strain on resources (Openstax, 2023). Market development enables Aotea to optimize the value of its existing production capacity by reaching out to new client segments ready to pay a premium for limited availability and handcrafted products. Aotea’s current e-commerce infrastructure and foreign shipping capabilities provide it with the core competencies it needs to enter foreign markets. The company may test a new market relatively cheaply through digital marketing and online sales before committing to a physical retail presence. It uses a structured market entrance strategy that limits risk and increases brand awareness systematically.

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