This is a solution of Unit4-Marketing Principles that describes about Developing business
Introduction
This is a broad-based unit which gives learners the opportunity apply the key principles of marketing.
Firstly, the unit looks at the definitions of marketing, and what is meant by a marketing orientation and the marketing process.
Next, learners consider the use of environmental analysis in marketing and carry out their own analyses at both macro and micro levels. They will also investigate the importance of market segmentation and how this leads to the identification and full specification of target groups. Learners then consider buyer behaviour and positioning.
The unit looks at the main elements of both the original and the extended marketing mix. This includes an introduction to the concept of the product life cycle, new product development, pricing strategies, distribution options and the promotion mix.
Finally, learners will develop their own marketing mixes to meet the needs of different target groups. This includes considering the differences when marketing services as opposed to goods. A range of other contexts is examined including marketing to businesses instead of consumers and the system development of international markets.
Aim:
This unit aims to provide learners with understanding and skills relating to the fundamental concepts and principles that underpin the marketing process.
Learning Outcomes and assessment criteria:
On successful completion of this unit a learner will:
1 Understand the concept and process of marketing
1.1 explain the various elements of the marketing process
1.2 evaluate the benefits and costs of a marketing orientation for a selected organisation
2 Be able to use the concepts of segmentation, targeting and positioning
2.1 show macro and micro environmental factors which influence marketing decisions
2.2 propose segmentation criteria to be used for products in different markets
2.3 choose a targeting strategy for a selected product/service
2.4 demonstrate how buyer behavior affects marketing activities in different buying situations
2.5 propose new positioning for as elected product/service
3 Understand the individual elements of the extended marketing mix
3.1 explain how products are developed to sustain competitive advantage
3.2 explain how distribution is arranged to provide customer convenience
3.3 explain how prices are set to reflect an organisation’s objectives and market conditions
3.4 illustrate how promotional activity is integrated to achieve marketing objectives
3.5 analyse the additional elements of the extended marketing mix
4 Be able to use the marketing mix in different contexts.
4.1 plan marketing mixes for two different segments in consumer markets
4.2 illustrate differences in marketing products and services to businesses rather than consumers
4.3 show how and why international marketing differs from domestic marketing.
On successful completion of this unit a learner will:
Be able to write a formal report based on own research and industry information gathered through visits at different cultural and heritage sights.
Knowledge and Understanding
Indicative content:
- Understand the concept and process of marketing
Definitions: alternative definitions including those of the Chartered Institute of Marketing and the American Marketing Association; satisfying customer needs and wants; value and satisfaction; exchange relationships; the changing emphasis of marketing
Marketing concept: evolution of marketing; marketing orientations; societal issues and emergent philosophies; customer and competitor orientation; efficiency and effectiveness; limitations of the marketing concept
Marketing process overview: marketing audit; integrated marketing; environmental analysis; SWOT analysis; marketing objectives; constraints; options; plans to include target markets and marketing mix; scope of marketing
Costs and benefits: links between marketing orientation and building competitive advantage; benefits of building customer satisfaction; desired quality; service and customer care; relationship marketing; customer retention; customer profitability; costs of a too narrow marketing focus
- Be able to use the concepts of segmentation, targeting and positioning
Macro environment: environmental scanning; political, legal, economic, socio-cultural,
ecological and technological factors
Micro environment: stakeholders (organisation’s own employees, suppliers, customers, intermediaries, owners, financiers, local residents, pressure groups and competitors); direct and indirect competitors; Porter’s competitive forces
Buyer behaviour: dimensions of buyer behaviour; environmental influences; personal variables – demographic, sociological, psychological – motivation, perception and learning; social factors; physiological stimuli; attitudes; other lifestyle and life cycle variables; consumer and organisational buying
Segmentation: process of market selection; macro and micro segmentation; bases for segmenting markets, (geographic, demographic, psychographic and behavioural); multi- variable segmentation and typologies; benefits of segmentation; evaluation of segments and targeting strategies; positioning; segmenting industrial markets; size; value; standards; industrial classification
Positioning: definition and meaning; influence over marketing mix factors
- Understand the individual elements of the extended marketing mix
Product: products and brands – features, advantages and benefits; the total product concept; product mix; product life cycle and its effect on other elements of the marketing mix; product strategy; new product development; adoption process
Place: customer convenience and availability; definition of channels; types and functions of intermediaries; channel selection; integration and distribution systems; franchising; physical distribution management and logistics; ethical issues
Price: perceived value; pricing context and process; pricing strategies; demand elasticity; competition; costs, psychological, discriminatory; ethical issues
Promotion: awareness and image; effective communication; integrated communication process (SOSTT + 4Ms); promotional mix elements; push and pull strategies; advertising above and below the line including packaging; public relations and sponsorship; sales promotion; direct marketing and personal selling; branding, internet and online marketing
The shift from the 4Ps to the 7Ps: product-service continuum; concept of the extended marketing mix; the significance of the soft elements of marketing (people, physical evidence and process management)
- Be able to use the marketing mix in different contexts
Consumer markets: fast moving consumer goods; consumer durables; coordinated
marketing mix to achieve objectives
Organisational markets: differences from consumer markets; adding value through service; industrial; non-profit making; government; re-seller
Services: nature and characteristics of service products (intangibility, ownership, inseparability, perishability, variability, heterogeneity – the 7Ps); strategies; service quality; elements of physical product marketing; tangible and intangible benefits
International markets: globalisation; cultural differences; standardisation versus adaptation; the EU; benefits and risks; market attractiveness; international marketing mix strategies
Programme Specification
- Accrediting Body: EDEXCEL
- Course: BTEC HND IN TRAVEL AND TOURISM MANAGEMENT
- Unit: 19 HERITAGE AND CULTURAL TOURISM MANAGEMENT
| Wk | Lecture Schedule | Outcome of session | Activity/seminar and formative assessment | Resources |
| 1 | Introduction to the module Address the mode of assessment Group discussion about the scenario with regards to the assignment and relevant tasks to be addressed | · Awareness to the module content · Challenges to the LO to be addressed | Case study and group discussion | Module outline and qualification frame work |
| 2 | Concept and process of marketing | Defining marketing, evaluating of concept of marketing, analysing marketing orientation, marketing process- elements and evaluation | Case study, activities, group discussion, research, addressing AC1.1 | Power Point presentation, activities, Internet websites |
| 3 | Costs and benefits of a marketing orientation | Analysing costs and benefits of marketing orientation – competitive advantage orientation and costs, perceived value for money, quality approach, analysing costs and profitability | Case study, activities, group discussion, research, addressing AC1.2 | Power Point presentation, activities, Internet websites |
| 4 | Macro and micro environmental factors affecting marketing decisions | Analysing micro and macro environments of chosen organisations, stakeholder analysis, PEST analysis, Porter’s five forces | Case studies, addressing Ac 2.1 | Power Point presentation, activities, Internet websites |
| 5 | Buyer behaviour affecting marketing startegies | Evaluating dimensions of buyer behaviour, analysing environmental influences, motivations and perceptions, PLC analysis | Case study, activities, group discussion, research, addressing AC2.4 | Power Point presentation, activities, Internet websites, movies |
| 6 | Segmentation of customers | Evaluating and analysing Segmentation criteria, proposing different criteria for segmentation, recognition of different customers and their needs | Case study, activities, group discussion, research, addressing AC2.2 | Power Point presentation, activities, Internet websites |
| 7 | Targeting and positioning | Analysing targeting and positing strategies, choosing relevant strategies for different products, evaluating influence over marketing mix factors | Visits, group discussion, research, addressing AC2.3, 2.5 | Power Point presentation, activities, Internet websites, visits |
| 8 | Product development | Analysing total product concept, evaluating different products according to needs, analysing branding startegies, PLC, analysing new product startegies | Case study, activities, group discussion, research, addressing AC3.1 | Power Point presentation, activities, Internet websites |
| 9 | Place – distribution, location | Analysing different distribution strategies, importance of accessibility, convenience and availability, distribution channel analysis, logistics importance | Case study, activities, group discussion, research, addressing AC3.2 | Power Point presentation, activities, Internet websites |
| 10 | Price strategies | Analysing importance of price, pricing strategies evaluation, choosing the best strategy for organisation, importance of price elasticity, cost consideration | Case study, activities, group discussion, research, addressing AC3.3 | Power Point presentation, activities, Internet websites |
| 11 | Promotion startegies | Evaluating promotional mix elements and importance, designing promotional campaign, analysis of integrative communication, PR strategies, e-marketing analysis | Case study, visit, activities, group discussion, research, addressing Ac 3.4 | Power Point presentation, activities, Internet websites, visits |
| 12 | Marketing mix – 7P approach | Evaluating extended marketing mix – 7p, importance of 7p in service, planning marketing mix for organisations operating in different segments | Case study, visit, activities, group discussion, research, addressing Ac 3.5 4.1 | Power Point presentation, activities, Internet websites, visits |
| 13 | Products vs services marketing – differences | Evaluating service characteristics, analysing importance of quality in service provision, analysing strategies for marketing of products and services | Case study, visit, activities, group discussion, research, addressing Ac 4.2 | Power Point presentation, activities, Internet websites, visits |
| 14 | International marketing | Analysing cultural differences influencing marketing, defining globalisation, examples of international mix strategies in global markets | Case study, visit, activities, group discussion, research, addressing Ac 4.2 | Power Point presentation, activities, Internet websites, visits |
| 15 | Revision, summarising | Revising and summarising unit | Case study, activities, group discussion, research, addressing all ACs | Power Point presentation, |
| 16 | Revision, summarising | Revising and summarising unit | Case study, activities, group discussion, research, addressing all ACs | Power Point presentation, |
| 17 | Assessment | Evaluating assessment tasks | All ACs | |
| 18 | Assessment | Evaluating assessment tasks | All ACs | |
| 19 | Assessment | Evaluating assessment tasks | All ACs | |
| 20 | Feedback | Providing feedback | LO AC |
Recommended text and links:
- Baines, P., Fill, C. and Page, K. (2010) Marketing.2nd edition. Oxford, Oxford University Press.
- Fill, C. (2011) Essentials of marketing communications. Harlow, Financial Times/Prentice
- Bradley, N (2010) Marketing Research: tools and techniques.2nd edition. Oxford, Oxford
- Roman, K. and Maas, J. (2005) How to advertise – what works, what doesn’t and why.3rd edition. London, Kogan Page.
- Davis, A. (2007) Mastering public relations.2nd revised edition. London,
- Brassington F and Pettitt S Principles of Marketing 4th Edition (Financial Times/Prentice Hall, 2006) ISBN: 9780273695592
- Kotler P et al Principles of Marketing, 5th Edition (Financial Times/prenticeHall, 2010) ISBN: 9780273743279
Journals
- Campaign (Haymarket Publishing)
- Harvard Business Review (Harvard Business Publishing)
- The Marketing Review (Westburn Publishers Ltd)
- The Marketer (Journal of the Chartered Institute of Marketing Magazine)
- Marketing Business (The Chartered Institute of Marketing Magazine)
- Marketing Week (Centaur Communications Ltd)
- The Financial Times and other daily newspapers which contain a business section and market reports. Read more : A Relational Database for Inventory Management Help
Websites
- www.bized.co.uk Bized provides a selection of teaching and learning resources
- www.cim.co.uk The Chartered Institute of Marketing’s site contains a useful knowledge centre
- www.ft.com The Financial Times business sections
- www.thetimes100.co.uk multimedia resource
- Assessment: Lecturer: K.A Mayah
- Campus: Wentworth House
- Contact details: kam_mka@yahoo.com
- The module will be assessed meeting all the LO as specified by the awarding body, Ed Excel.
- Please read the instructions carefully while addressing the tasks specified.
- Contribution: of the module 100%
- Outline Details: report approx. 4000 to 4500 words. Details enclosed in the assignment brief.
Teaching and Learning Activities
The module tutor(s) will aim to combine lectures with tutorial activities. This environment will provide opportunities for the student to understand the course material through case study and text and to apply it in a practical way. The intent is to facilitate interactive class activities, and discussion about the significant role of research in a global and local business environment.
2.3 Teaching Ethos
The college’s approach towards teaching and learning is simple and effective. The main aim of UKCBC is to assist learners in maximising their potential by ensuring that they are taught clearly and effectively. This will enable students to engage in the learning environment and promote success in both their academic studies and subsequent career.
2.3.1 Methods of Delivery:
LECTURES:
These will be developed around the key concepts as mentioned in the indicative course content and will use a range of live examples and cases from business practice to demonstrate the application of theoretical concepts. This method is primarily used to identify and explain key aspects of the subject so that learners can utilise their private study time more effectively.
SEMINARS:
These are in addition to the lectures. The seminars are designed to give learners the opportunity to test their understanding of the material covered in the lectures and private study with the help of reference books. This methodology usually carries a set of questions identified in advance. Seminars are interactive sessions led by the learners. This method of study gives the learner an excellent opportunity to clarify any points of difficulty with the tutor and simultaneously develop their oral communication skills.
CASE STUDIES: An important learning methodology is the extensive use of case studies. They enable learners to apply the concepts that they learn in their subjects. The learners have to study the case, analyse the facts presented and arrive at conclusions and recommendations. This assists in the assessment of the learner’s ability to apply to the real world the tools and techniques of analysis which they have learnt. The case study serves as a supplement to the theoretical knowledge imparted through the course work.
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and scope of plagiarism are presented below
Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)
Assessment:
- The module will be assessed meeting all the LO as specified by the awarding body, Ed Excel.
- Please read the instructions carefully while addressing the tasks specified.
- Contribution: 100% of the module
- Outline Details: report approx 4000 to 4500 words. Details enclosed in the assignment brief
ASSESSEMENT SHEET
| Unit: 4 – Marketing Principles (F/601/0556) - CORE UNIT | |
| Learning Hours: 60 Hours. Self-learning hours: 90 hours. | |
| Course: HND Business – Level 4 CREDIT VALUE: 15 CREDITS | |
| Term: | |
| Lecturer: K.A Mayah | Internal Verifier: Mrs Sunita Kotta |
| Learners Name | |
| Registration Number | |
| Learners Declaration: I certify that the work submitted for this unit is my own: | |
| Signed: | |
| Hand out Date: Submission Date: | |
The Following Sections to be completed by the assessor:
| Center Name: | UKCBC |
| Center Number: |
Please note that the assessors signature below denotes conformation that he/she has in no way influenced the outcome of the assessment:
| Assessors Name: | |
| Assessors Signature: | |
| Has the unit been Internally Verified? Y/N Date of verification: | |
| Internal verifiers signature: | |
| Internal verifiers assignment brief: | |
| Due Dates | |||
| Issue Date | |||
| Due Task- 1 | 14/3/2014 | Due date from | 23/5/2014 |
| Due Task- 2 | 4/4/2014 | Final Due Date for September 2013 intake | 05/08/14 |
| Due Task- 3 | 25/4/2014 | Final due date for Jan 2014 intake | 5/11/2014 |
| Due Task - 4 | 9/5/2014 | ||
Unit Outcomes
| Outcome | Evidence for the criteria to pass. | Assessors decision | Internal verification decision. (agree, disagree) | |||||||||||||||||||
| Task 1 The Key objective of this task is to exhibit an understanding to the concept and process of marketing. Please refer to the case study and start your report by explaining two elements of marketing planning process based on the example of Starbucks. You are to prepare a SWOT analysis of the organization and explain the importance of using SWOT analysis as marketing tool. Next present and evaluate the marketing objectives of Starbucks and explain how defining marketing objectives can help a business to develop marketing strategies. How does this contribute to the benefits and costs such as market orientation, customer satisfaction, desired quality, relationship marketing etc--- | ||||||||||||||||||||||
| LO1 Understand the concept and process of marketing | P1.1 Explain the various elements of the marketing process of star bucks | P1.1 (P,M,D) | P1.1 (P,M,D) | |||||||||||||||||||
| P1.2 Evaluate the benefits and costs of a marketing orientation for Star Bucks | P1.2 (P,M,D) | P1.2 (P,M,D) | ||||||||||||||||||||
| Summarized Feedback for Task 1(reflecting 1.1, 1.2, Pass merit and distinction.) | ||||||||||||||||||||||
| IV comments towards Task 1 | ||||||||||||||||||||||
| Task 2 In the next task you will focus on the concepts of segmentation, targeting and positioning (STP strategy). -Start this task by analyzing three micro and three macro environmental factors influencing marketing decisions in Starbucks. - After that propose which segmentation criteria would be the most applicable for Starbucks to use for their products in different markets. (use examples of at least two different segmentation criteria) - Thinking about a range of products and services Starbucks offer choose a targeting strategy for a one of them and propose a positioning market strategy for this product. - Demonstrate how buying behavior affects marketing activities in different buying situations. Provide here two examples of buying situations which marketing managers in Starbucks should in your opinion especially consider. -Finish Task 2 by proposing a new positioning for the service or product of Star Bucks. | ||||||||||||||||||||||
| LO 2 Be able to use the concepts of segmentation, targeting and positioning | P 2.1 Show macro and micro environmental factors which influence marketing decisions for Star buck | P2.1 (P,M,D) | P2.1 (P,M,D) | |||||||||||||||||||
| P2.2 propose segmentation criteria to be used for products in different markets | P2.2 (P,M,D) | P2.2 (P,M,D) | ||||||||||||||||||||
| P2.3 choose a targeting strategy for a selected product/service | P2.3 (P,M,D) | P2.3 (P,M,D) | ||||||||||||||||||||
| P2.4 demonstrate how buyer behavior affects marketing activities in different buying situations | P2.4 (P,M,D) | P2.4 (P,M,D) | ||||||||||||||||||||
| P2.5 propose new positioning for a selected product/service | P2.5 (P,M,D) | P2.5 (P,M,D) | ||||||||||||||||||||
| Summarized Feedback for Task 2(reflecting 2.1, 2.2, 2.3, 2.4, 2.5 Pass merit and distinction.) | ||||||||||||||||||||||
| IV comments towards Task 2 | ||||||||||||||||||||||
| Task 3: In this task you will start analysing marketing mix elements, which are in the heart of all marketing strategies. As before, think about Starbucks while addressing all the elements of this task. - Start by explaining how products in Starbucks are developed in order to make sure that competitive advantage is sustained. You should focus here on the differences in products between Starbuck and different coffee shop. Provide at least two examples. - Next you are to explain distribution strategies used by Starbucks. Think about customers’ convenience and satisfaction in relation to distribution channels used. - In the next part you are to analyse pricing strategies used by Starbucks. Provide an explanation how prices are set in relation to company’s objectives and market conditions (competition, current economic situation etc.). - Promotional activity is a must for every organization. Make a research into promotional activities of Starbucks and illustrate how promotional strategies used by this organization are integrated and related to marketing objectives of the organization. - Finally at the end of this task you were asked to provide short analysis of additional elements of the extended marketing mix based on the example of Starbucks. | ||||||||||||||||||||||
| P3 Understand the individual elements of the extended marketing mix | P 3.1 explain how products are developed to sustain competitive advantage | P3.1 (P,M,D) | P3.1 (P,M,D) | |||||||||||||||||||
| P 3.2 explain how distribution is arranged to provide customer convenience | P3.2 (P,M,D) | P3.2 (P,M,D) | ||||||||||||||||||||
| P 3.3 explain how prices are set to reflect Star Bucks objectives and market conditions | P3.3 (P,M,D) | P3.3 (P,M,D) | ||||||||||||||||||||
| P3.4 illustrate how promotional activity is integrated to achieve marketing objectives | P3.4 (P,M,D) | P3.4 (P,M,D) | ||||||||||||||||||||
| P 3.5 analyse the additional elements of the extended marketing mix | P3.5 (P,M,D) | P3.5 (P,M,D) | ||||||||||||||||||||
| Summarized Feedback for Task 3(reflecting 3.1, 3.2, 3.3, 3.4, 3.5 Pass merit and distinction.) | ||||||||||||||||||||||
| IV comments towards Task 3 | ||||||||||||||||||||||
| Task 4: Last task is to present your ability to use the marketing mix in different contexts. - To begin with you are asked to plan and prepare marketing mix for two different segments of market in Starbucks. Use here an example of one existing segment and propose the second, new one. Design for both segments marketing mix plan (4P). - Your task is also to illustrate differences in marketing products and services to business rather than consumers. Next to Starbucks use here an example of another organization. - Finally your report will end with the evaluation how and why international marketing differs from domestic one – use here at least two examples of marketing strategies Starbuck used to market their products internationally. | ||||||||||||||||||||||
| TASK 4 4 Be able to use the marketing mix in different contexts. | P 4.1 plan marketing mixes for two different segments in consumer markets | P4.1 (P,M,D) | P4.1 (P,M,D) | |||||||||||||||||||
| P 4.2 illustrate differences in marketing products and services to businesses rather than consumers | P4.2 (P,M,D) | P4.2 (P,M,D) | ||||||||||||||||||||
| P4.3 show how and why international marketing differs from domestic marketing. | P4.3 (P,M,D) | P4.3 (P,M,D) | ||||||||||||||||||||
| Summarized Feedback for Task 4(reflecting 4.1 4.2 4.3, Pass merit and distinction.) | ||||||||||||||||||||||
| IV comments towards Task 4 | ||||||||||||||||||||||
| Merit grades awarded | M1 | M2 | M3 | P1 | P2 | P3 | P4 | |||||||||||||||
| Distinction grades awarded | D1 | D2 | D3 | Resubmit : | ||||||||||||||||||
| Any other comments | ||||||||||||||||||||||
| Grade given by the Assessor: Pass Merit Distinction Assessors Signature: Date: | ||||||||||||||||||||||
| IV Grading Check: Comments if any: Agree Disagree Modify grade to IV signature: Date: | ||||||||||||||||||||||
| Student feedback: Student signature: | ||||||||||||||||||||||
| Plagiarism: Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and scope of plagiarism are presented below: Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.) | ||||||||||||||||||||||
ASSIGNMENT
Starbucks – case study
The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company grew to be the largest roaster in Washington with multiple locations until the early 80’s.
In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new products, Schultz realized an opportunity to bring the café community environment he found in Italy to the United states and the Starbuck’s brand we know today began to take form. Selling espresso by the cup was the first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which found outrageous success and in 1987 when Starbucks decided to sell the original 6 locations, Schultz raised the money with investors and purchased the company and fused them with his Italian bistro locations. The company experienced rapid growth going public in 1992, and growing tenfold by 1997, with locations around the United States, Japan and Singapore. Starbucks also began expanding its brand.
In the history of Starbucks the following product lines were added:
- Offering Starbucks coffee on United Airlines flights.
- Selling premium teas through Starbucks’ own Tazo Tea Company.
- Using the Internet to offer people the option to purchase Starbucks coffee online.
- Distributing whole bean and ground coffee to supermarkets.
- Producing premium coffee ice cream with Dreyer’s.
- Selling CDs in Starbucks retail stores.
Starbucks uses minimal advertising and has grown on word of mouth and brand recognition. In 2004 Starbucks had reached 1,344 locations.
Today Starbucks has 16,706 stores (as of Dec. 27, 2009) in 50 countries. In 2009 they made strives socially as they opened the Farmer Support Center in Kigali, Rwanda and became the world’s largest buyer of Fair Trade CertifiedTM coffee.
Their mission statement from the company profile is as follows:
“Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time.”
Their core competencies can be defined as high quality coffee and products at accessible locations and affordable prices, provided a community to share in the coffee drinking experience, and variety of choices. The also value ethics and good business practices and are a leader being voted one of 2010’s most ethical businesses by Ethisphere magazine for the 4th year running.
Starbucks is facing its own struggles however as it saw sales start slipping before other companies did in the recent recession. According to Melissa Allison in her article Starbucks has a new growth strategy — more revenue with lower costs, Starbucks has closed 900 stores and eliminated 34,000 jobs. Starbucks new strategy is to refocus on some of the areas that decrease risk and up front investment. This includes expanding foreign stores, with aid of partnerships that share risk and costs, selling VIA instant coffee and other products in retail and convenience stores, and reinvigorating the Seattle’s Best Brand coffee.
A statement from CFO Troy Alstead this March paints this picture:
“We clearly hit a wall and didn’t do very well in the 2007/2008 time period. From here forward, when we grow Via, Seattle’s Best Coffee and consumer products, there’s less investment for each dollar of revenue.”
This new strategy has inspired some optimistic feedback. Morningstar investment research firm has increased estimate of Starbucks shares from $4 a share to $24 after the statement of revamping the brand.
Morningstar analyst had this to say R.J. Hottovy.:
“I’m surprised it wasn’t ramped up in earlier years. Product innovations and international expansion not only make the business potentially more profitable, but defend them against competition.”
International partnerships increase challenges but also create new ideas in new markets that can then be translated back to US markets.
Starbucks in a mature stage of its lifecycle. It was founded over 20 years ago and it has experienced rapid growth in the last 2 decades. However within the last few years its growth has slowed and has even had to close locations. They are now focusing efforts on previous endeavors and international expansion.
After expanding and growing in the U.S. markets, the need of the hour is global expansion for continuous growth of Starbucks and that is why International Marketing Strategies were being framed. Starbucks coffee International has hired multi lingual and multinational managers to work towards the worldwide expansion in a planned manner. This group has the responsibilities like:
- Developing new businesses
- Financing and planning new stores across the world
- Managing operation and logistics
- Merchandising
- Developing trained International mangers for Starbucks
Starbucks hold the honour of opening first non-North American store in Tokyo , Japan in 1996 and here its no-smoking policy served as an oasis in Japan and helped in creating a brand recognition in Japan. From 1996 off shore Starbucks stores are a force to wrecken with as now they have more than 7,800 units worldwide and mostly on the prime locations like shopping centres and airports.
Most of the products offered overseas are seasonal and locality specific across various countries. A global Marketing Strategy Mix has been designed for effective global growth and impact. This says:
“Follow the same retailing formula all across the world”
The product offerings are modified and catered to local tastes and it tries to make them according to the local taste.
The advertising strategy of Starbucks is quite unique as it does not follow any international campaign or formula for advertising rather it focuses on using stores as their brand ambassadors. Thus the strategy of advertising is differentiated and localized rather than standard.
It follows the store expansion very rapidly all over the world thus not giving any time to other local organizations to imitate their concept. They follow the strategy of “Starbucks Everywhere” approach while expanding their span (Tewell, Odom & Snider 2006).
Follow extensive employee training and recruitment programmes where they have a proper system of recruiting, hiring and training baristas and store managers.
Focussing on the store design, planning and proper construction of the stores across the world. There is a broad range of formats which are adopted for store designs. Mostly the stores are located or planned in high traffic and high visibility and most prominent areas of the city.
The bottom-line of the strategy is to spread the American flavour of coffee all around the world by developing a diverse international business portfolio along with profitability and growth. Thus Starbucks keeps on adding new stores and that too in all the prime locations across all the fastest growing economies of the world (Starbucks International Strategy, slideshare.net).
Starbucks does not introduce its products in one go; it follows the product innovation and introduction in phases. Thus introduces the whole range of products of coffee and tea one by one, so that all the products get visibility and the customers get to relish the taste of every product of Starbucks and then choose and decide their favourite one. Starbucks is selective about introducing certain specific products which are not introduced worldwide like the ready-to-drink coffee beverages in just few countries like Japan, Taiwan, and Korea etc. to increase its profits.
Since North America just caters to just 20% of coffee markets so it was imperative for Starbucks to enter markets which had dedicated coffee and tea drinkers.
Starbucks is undoubtedly one of the most – if not the single most – successful coffee chains of the last few decades. This assessment seeks to explore the Starbucks brandscape through an external analysis of the economic, competitive, social, demographic and legal and regulatory factors of the coffee market. Application of the Marketing Mix, a detailed consumer analysis, as well as an examination of future implications for the brand will also be addressed.
In a market of 1.5 billion, the Canadian coffee and tea industry accounts for nearly 1.1% of the total value of food and beverage sales of goods manufactured in the sector. A growing target market for this industry includes university and post-graduate students ages 18-29 living in urban areas. These two segments “account for the largest portion of gourmet coffee drinkers” Starbucks has capitalized on this target market and has become one of the most dominant forces in the coffee and tea industry.
In a market of 1.5 billion, the Canadian coffee and tea industry accounts for nearly 1.1% of the total value of food and beverage sales of goods manufactured in the sector. A growing target market for this industry includes university and post-graduate students ages 18-29 living in urban areas. These two segments “account for the largest portion of gourmet coffee drinkers” Starbucks has capitalized on this target market and has become one of the most dominant forces in the coffee and tea industry.
Besides their commitment to selling quality products, Starbucks is one of the most socially engaged companies in North America. From ethical outsourcing, promoting diversity within the company, community involvement and youth leadership, as well as being environmentally conscious, Starbucks has created a brand that has proven to be extremely marketable and profitable in the ever-growing socially conscious society.
The future of Starbucks is promising. However, in order to continue being market leaders Starbucks needs to continually strive to be innovative and creative. Starbucks must continue to take progressive leaps such as: technological and social media engagement, as well as remain committed to the socially conscious pillars the brand has been founded upon.
The future of Starbucks is promising. However, in order to continue being market leaders Starbucks needs to continually strive to be innovative and creative. Starbucks must continue to take progressive leaps such as: technological and social media engagement, as well as remain committed to the socially conscious pillars the brand has been founded upon.
As the introduction to this assignment you will find a case study about Starbucks. Based on the information provided as well as on your knowledge and research about the company you are to address 4 main tasks in the report.
Task 1
Start your report by explaining the various elements of marketing process based on the Starbucks.
1.1 You are to prepare a SWOT analysis of the organization and explain the importance of using SWOT analysis as marketing tool.
1.2 Next present and evaluate the marketing objectives of Starbucks and explain how defining marketing objectives can help a business to develop marketing strategies. How does this contribute to the benefits of costs such as market orientation as customer satisfaction, desired quality, service or customer care, relationship marketing etc ---
Task 2
In the next task you will focus on the concepts of segmentation, targeting and positioning (STP strategy).
- 2.1 -Start this task by analysing any three micro and three macro environmental factors influencing marketing decisions in Starbucks. –
- 2.2 -After that propose which segmentation criteria would be the most applicable for Starbucks to use for their products in different markets. (use examples of at least two different segmentation criteria)
- 2.3 - Thinking about a range of products and services Starbucks offer choose a targeting strategy for a one of them and propose a positioning strategy for this product.
- 2.4 - Demonstrate how buyer behaviour affects marketing activities in different buying situations. Provide here two examples of buying situations which marketing managers in Starbucks should in your opinion especially consider
- Finish Task 2 by proposing a new positioning for the service or product for star bucks.
Task 3
In task 3 you will start analyzing marketing mix elements, which are in the heart of all marketing strategies. As before, think about Starbucks while addressing all the elements of this task.
- - Start by explaining how products in Starbucks are developed in order to make sure that competitive advantage is sustained. You should focus here on the differences in products between Starbuck and different coffee shop. Provide at least two examples.
- - Next you are to explain distribution strategies used by Starbucks. Think about customers’ convenience and satisfaction in relation to distribution channels used.
- In the next part you are to analyse pricing strategies used by Starbucks. Provide an explanation how prices are set in relation to company’s objectives and market conditions (competition, current economic situation etc.) See more :
- Promotional activity is a must for every organization. Make a research into promotional activities of Starbucks and illustrate how promotional strategies used by this organization are integrated and related to marketing objectives of the organization.
- - Finally at the end of this task you were asked to provide short analysis of additional elements of the extended marketing mix based on the example of Starbucks.
Task 4
Last task is to present your ability to use the marketing mix in different contexts.
4.1 -To begin with you are asked to plan and prepare marketing mix for two different segments of market in Starbucks. Use here an example of one existing segment and propose the second, new one. Design for both segments marketing mix plan (4P).
- Your task is also to illustrate differences in marketing products and services to business rather than consumers. Next to Starbucks use here an example of another organization.
- Finally your report will end with the evaluation how and why international marketing differs from domestic one – use here at least two examples of marketing strategies Starbuck used to market their products internationally. See more : HNCB 038 Hydraulic Principles And Applications
Assignment Guidelines:
- Use a standard report structure, Word-process the report and use Normal script of a proper font size 12.
- Produce an academic report, detailing the above issues with a word limit of 4000 to 4500 words.
- Complete the title page and sign the statement of authenticity.
- The Assignment sheet should be attached in the front.
- Submit the document in a folder in the form of a file as well as a soft copy on the submission date.
- It should be uploaded on E-Learning platform before the deadline and submitted to -------- and sign the submission form of the college.
- Assignments submitted after the deadline will not be accepted unless mitigating and may be entitled for a late fee.
- Collusion and Plagiarism must be avoided.
- Start each answer on a new page and pages should be numbered. Highlight each question clearly.
- Include a Bibliography at the end of the assignment and use the Harvard referencing system.
- All work should be comprehensively referenced and all sources must be fully acknowledged, such as books and journals, websites (include the date of visit), etc.
- Try to give the page numbers, publishers' details and the year of publication
- In order to pass you need to address all the LO
- In order to get a merit you need to first pass and also address the characteristics of M1, M2,M3
- In order to get a Distinction you need to first pass, meet all the merit characteristics and then address the characteristics of D1, D2 and D3. Use a common format for the questions, for example:
- Introduction (analyze the question.)
- Underpinning Knowledge (write about the relevant theory/points)
- Applied knowledge(Data Analysis)
- Conclusions and Recommendations (summarizing the whole scenario keeping in view pass, merit, distinction criteria.)
Student feedback form with the Assessment Grid indicating their pass, merit and distinction:
Name: Registration Number:
Unit: Marketing Principles
| Outcomes/criteria: | Indicative characteristics | Possible evidence | Feedback |
| P1 Understand the concept and process of marketing P2 Be able to use the concepts of segmentation, targeting and positioning P3 Understand the individual elements of the extended marketing mix P4 Be able to use the marketing mix in different contexts. | As per the assessment criteria specified for pass Do Do Do | Task 1 Task 2 Task 3 Task 4 | |
| Merit Description: | |||
| M. Identify and apply strategies to find appropriate solutions. | . Relevant theories and techniques have been applied. | ||
| . Effective judgments have been made. | |||
| . Complex problems with more than one variable have been explored. | |||
| . An effective approach to study and research has been used. | |||
| M2. Select/ design and apply appropriate methods/ techniques. | . A range of methods and techniques has been applied. | ||
| . A range of sources of information used. | |||
| . The selection of methods and techniques justified. | |||
| . Complex information/data have been synthesized and processed. | |||
| .Appropriate learning methods/ techniques applied. | |||
M3. Present and communicate appropriate findings. | . Appropriate structure and approach has been used. | ||
| . Logical and coherent arguments have been presented | |||
| . Technical language accurately used. | |||
| . A range of methods of presentation has been used. | |||
| . Familiar and unfamiliar contexts have been used. | |||
| . It is appropriate for familiar and unfamiliar audiences. | |||
| Distinction Description: | |||
| D1. Use critical reflection to evaluate own work and justify valid conclusion. | . Synthesis has been used to generate and justify valid conclusions | ||
| . The validity of results has been judged | |||
| . Self-criticism of approach has taken place. | |||
| . Evaluation has taken place using defined criteria | |||
| . Realistic improvements have been proposed against defined characteristics for success. | |||
| D2. Take responsibility for managing and organizing activities. | Autonomy/independence demonstrated | ||
| Substantial activities/projects or investigations have been planned, managed and organized. | |||
| The unforeseen has been accommodated. | |||
| The importance of interdependence has been recognized. | |||
| D3. Demonstrate convergent, lateral and creative thinking | Ideas generate and decisions taken | ||
| Convergent and lateral thinking have been applied | |||
| Capacity for innovation and creative thought has been used. | |||
| Receptiveness to new ideas has demonstrated. | |||
| Unfamiliar contexts have been applied. |
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