marketing principles - module booklet jan - may 2014 eve3

UK COLLEGEOF BUSINESS AND COMPUTING

Module Booklet

Course: EDEXCEL BTEC (HND) BUSINESS

Group: Ed excel Level

Module: Unit 4- MARKETING PRINCIPLES

Module type: Module Code: F/601/0556

Module Credit: 15

Teaching Period: (15+6 weeks)

Level: 4 (QCF)

Contact Hours: (15*3 = 45 + 6*3=15)

Lecturers: 15 weeks

Revision Clinic: 3 weeks

Feedback and assignment guidance: 3 weeks

Module Leader: Magdalena Wronska

Lecturer: Andrew Wiggan

Start date: 27/01/14

Day: Monday

Time: 18:00 – 21:00

Group, Room and Campus: Business WH – EVE3

Term:Winter Term

CONTENTS

1. INTRODUCTION, AIMS AND OBJECTIVES

2. MODULE OUTLINE AND TEACHING METHODS

3. READING AND COURSE PREPRATION

4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES

5. ASSESSMENT DETAILS

1. 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 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 Illustratehowpromotionalactivityisintegratedto achieve marketing objectives

3.5 Analysetheadditionalelementsoftheextended marketing mix

4 Be able to use the marketing mix in different contexts

4.1 planmarketingmixesfortwodifferentsegmentsin consumer markets

4.2 illustratedifferencesinmarketingproductsandservices to businesses rather

thanconsumers

4.3 showhowandwhyinternationalmarketingdiffersfrom 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:

1 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

2 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

3 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)

4 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 BUSINESS

Unit: 4 MARKETING PRINCPLES

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


addressing AC1.2

Power Point


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


Internet websites

5

Buyer behaviour affecting marketing strategies Evaluating dimensions of

buyer behaviour, analysing

environmental influences,

motivations and perceptions,

PLC analysis

Case study,

activities, group


addressing AC2.4

Power Point


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


addressing AC2.2

Power Point


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


addressing AC2.3,

2.5

Power Point


Internet websites, visits

8

Product development Analysing total product

concept, evaluating different

products according to needs,

analysing branding

strategies, PLC, analysing

new product strategies

Case study,

activities, group


addressing AC3.1

Power Point


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


addressing AC3.2

Power Point


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


addressing AC3.3

Power Point


Internet websites

11

Promotion strategies Evaluating promotional mix

elements and importance,

designing promotional

campaign, analysis of

integrative communication,

PR strategies, e-marketing

analysis

Case study, visit,

activities, group


addressing Ac 3.4

Power Point



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


addressing Ac 3.5

4.1

Power Point



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


addressing Ac 4.2

Power Point



14

International marketing Analysing cultural

differences influencing

marketing, defining

globalisation, examples of

international mix strategies in

global markets

Case study, visit,

activities, group


addressing Ac 4.2

Power Point



15 Revision, summarising Revising and summarising

unit

Case study,

activities, group


addressing all ACs

Power Point

presentation,

16

Revision, summarising Revising and summarising

unit

Case study,

activities, group


addressing all ACs

Power Point

presentation,

17 Assessment Evaluating assessment tasks All ACs



20 Feedback Providing feedback LO AC

Recommended text and links:

Kotler P et al, Principles of Marketing, 4th European Edition (Pearson, 2005) ISBN-13: 978-0-273-68456-5

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

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

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

Wk Session Update Date Signature

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Lecturer: Andrew Wiggan

Campus: Wentworth house

Contact details: [email protected]

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: 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

15

ASSESSEMENT SHEET

Unit: 4 – Marketing Principles(F/601/0556) - CORE UNIT

Learning Hours: 63 Hours. Self-learning hours: 87 hours.

Course: HND Business – Level 4 CREDIT VALUE: 15 CREDITS

Term:

Module Leader:Andrew Wiggan

Lecturer:

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 January 27, 2014 Due date February 28th, 2014

Due Task- 2 March 28th 2014 Final Due

Date for

September

2013 intake

05/08/14

Due Task- 3 April 28th, 2014 Final due date

for Jan 2014

intake

6TH WEEK OF THE

ASSIGNMENT TERM

Due Task - 4 May 23rd, 2014

16

Unit Outcomes

Outcome Evidence for the criteria to

pass.

Assessors

decision

Internal

verification

decision.

(agree,

disagree)

Task 1The Key objective of this task is to exhibit an understanding to the concept

and process of marketing.

Please refer to the case studyandstart your report by explaining two elements of

marketing 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

17

Task 2

In the next task you will focus on the concepts of segmentation, targeting and positioning

(STP strategy).

-Start this task by analysing 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 strategy for this product.

- Demonstrate how buyingbehaviour 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)

18

Summarized

Feedback for Task


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)

19

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


3.3, 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)

20

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.)

21

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.

22

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 Centre 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 upfront 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

endeavours and international expansion.

23

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.

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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.

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.

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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.

1.1You are to prepare a SWOT analysis of the organization and explain the importance of using

SWOT analysis as marketing tool.

1.2Next 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 analysingany 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 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.

3.1 -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.

3.2 - Next you are to explain distribution strategies used by Starbucks. Think about customers’

convenience and satisfaction in relation to distribution channels used.

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3.3 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.)

3.4 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.

3.5 - 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).

4.2 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.

4.3 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.

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

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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.

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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.

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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.