This study material provides an in-depth understanding of establishing and adjusting the marketing mix. It covers the 7 P's of marketing mix, various strategies, and their impact on business performance. Get solved assignments, essays, and dissertations on this topic at Desklib.
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BSBMKG502 Establish and Adjust the Marketing Mix
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INTRODUCTION Marketing mix can be defined as a set of actions or tactics which is done by companies in order to promote its brand. The marketing mix is made up of 7 P's namely product, price, place, promotion, physical evidence, people and place which is discussed in a report. The marketing mix of CoffeVeille has also been discussed in study. The report will also cover various strategies of marketing mix. Case has also been discussed in study which is based on Michael's cafe. TASK 1 1. The ADMA focuses on providing greater consumer trust and confidence. Secondly the logo of ADMA should be seen as the logo of trust. The companies should take reasonable steps in order to avoid marketing which is intrusive or excessive and should not knowingly target vulnerable consumers. 2. Members should not intentionally spread or pass wrong information in written, oral or conceal any relevant fact. The members are responsible and holds the duty to maintain truth, good taste as well as accuracy in making various strategies which are included in marketing mix such as advertising, sales promotion etc. Members should not be involved with any such enterprises which use improper or illegal method to obtain business(Fan, Lau & Zhao 2015). 3. There is a direct link between consumer behaviour and marketing mix as consumer behaviour is a study by which the marketers came to know about the way in which people seek, evaluate, purchase and dispose product. While marketing strategy is strategy which is made for packaging, distribution and sales by market researchers. The marketers make strategies for their product and services by analysing the behaviour of customers which results in higher profit margin and competitive sustainability. 4.The product is very essential or central element of marketing mix. The reason behind this is that, the success of marketing strategies and brand image depends entirely upon the type of product which is introduced in a market. Therefore it is highly required that product should be of great quality. If the product is not unique, or is of bad quality and is unable to attract customers than there is no chance of marketing mix to succeed(Stead & Hastings, 2018). 5. The product life cycle is divided in four stages as introduction, growth, maturity and decline. This concept is used by management and marketing professionals in order to decided that when
various activities or steps such as advertising, expansion of market, redesign packaging and reduction in prices is to be done. Introduction stage:The firm builds product awareness and develop market for their product. Growth stage:The firm builds brand preference and try to increase their market share. Maturity stage:Competition arises in market. The main aim at this stage is to protect market share by maximising profit. Decline stage:The sales decline at this stage, therefore as a result company can maintain product by adding new features, reduce cost, or discontinue the product and sell it to firm who are willing to sell this product. 6. Pricing strategies Market penetration: The strategy aims at attracting customers by offering lower prices. For example a company may offer its current products at low prices to attract customers. Price skimming: Introducing the product at high rate during introductory phase than gradually lower the prices as the competition arises in market(Kienzler & Kowalkowski, 2017). Example: A play station was sold at a rate of $599 in US market but after the competition has increased and time passes the price was reduced gradually to $200. Bundle pricing: The firm will charge lower prices for products or services if bought in large quantity. The prices are lower than the product brought separately. For example a company providing soap may charge higher if soap is bought individually but if a customer bought pack of 5 than the cost will charge will be lower. 7. Comparison of pricing strategies with competitors is beneficial because it will help business to identify the various reasoners behind why customers are attracting toward their competitors. Therefore in order to remain ahead of competitors it is highly required that company analyse the market properly. 8.Social media promotion:Promotion of products and services with the help of social media platforms such as Facebook, google +, etc. Causes and charity:promoting products while supporting cause is also a best and effective promotional strategy. Branded promotional gifts: Providing promotional gift is one of the promotional strategy which is quite helpful in attracting customers(Chang & Flores, 2015).
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Lakme use various social media platforms in order to promote its product such as you- tube, Facebook, Instagram etc. Also the company has run a Sustainable fashion day, the entire day was dedicated to sustainable designers and labels but the main focus was on weavers, artisans who actually create clothes. The company also provide gift cards to its customers. 9.Direct selling:In direct selling products and services are sell directly to customers. Selling through intermediaries: The intermediaries such as wholesalers and retailers are involved in the process also known as indirect channel. Dual distribution: The manufactures and wholesalers use more than one channel simultaneously in order to reach to the customer or user. For example: Shopping items such as clothes, furniture, toys and tableware use more than one channel. From producer to retailer to consumer Bulk items use producer to wholesaler to retailer to customer Perishable items which needed to be provided fresh in market use producer to agent to wholesaler to customer. 10. Packaging: Packaging refers to the way in which product is packed or the way it appears from outside. It is one of the important element behind attracting customers. Positioning:The position which product and service has gained in heartsand minds of customers. People: The individual or persons outside and inside organisation. These are the elements which were added in marketing mix, earlier the strategies were made by keeping in mind the aspects of price, product, place, promotion and now the focus on laid on these three factors also while making strategies for company. 11. Sampling: A sampling technique can be used in order to gather information from the market. Under this process the sample population is selected in order to gather information. Conversion rate of sales: Conversion rate of sales can also be used. It is a method in which number of conversions is divided by total number of visitors. Measure of central tendency: It is the central or typical value for probability distribution. It is a method for describing the set of data by identifying the central position. 12. It will help organisation to improve its business by identifying business performance. Secondly it will also help business to make changes in its strategies as per the market trend.
13. Sales data help marketer to analyse the products which is high on sale or low on sale and making changes in them accordingly. It also helps marketers to analyse that from where customers are coming means higher income group, geographic etc. 14. Leading indicators can be defined as a industrial as well as economic statistics which shows an indication of value of direction for another variable. Leading indicators helps marketers to analyse to predict significant changes in economy. For example money supply will indicate the future level of consumer spending. It is used in making decision as it helps in identifying cyclic nature or turning points of variable. TASK 2 External environment It includes all those factors that may affect the operations of the organisation. External environment of the business is divided into two parts that are micro and macro environment (Wahab and Hassan, 2015). CoffeVille will use PESTLE analysis for evaluating the impact of external environment on the business. Such as- Political : It includes rules and regulations of the Government that may affect the operations of the company such as legislation related with food safety, health and safety of workers, laws related with packaging etc. Economical : Economical environment includes various factors such as rate of interest, purchasing power of consumers, rate of inflation, labour cost etc. These factors also impact the sales and profitability of CoffeVille. The rate of interest in Australia is not too high therefore, it supports the confidence of business and consumers. Social : Social and cultural environment consists of change in demands of consumers, attitude of people towards the products of the firm. CoffeVille should make efforts for bringing new products in the market according to the demands of customers(Marketing plan,2019). Technological :
Technological factors involves change in the technology of producing or delivering products to ultimate buyers. Changes are happening on continuous basis therefore, CoffeVille should implement changes in production of coffee to remain competitive (Perera, 2017).. Legal : There are various legal factors that can impact the operations of the company such as law related with data privacy, intellectual property rights etc. If, organisation fails to comply these laws it will have to pay penalty. Economical : Governmentofthecountryhasdevelopedvariouslawstoensureenvironmental protection. CoffeVille should comply these laws for protecting the environment from negative impact of production. Marketing plan Executive summary CoffeVille was founded in year 2009 in Collins St Melbourne Vic. It was started by Rufus and Emma Balcastran. Both the siblings have understood the demand of high quality of products. Therefore, they have decided to offer the products to busy city population (Perera, 2017).The franchisee of CoffeeVille was going to be started in Brisbane. The main aim of a company is to achieve vision and mission by implementing various strategic decision: ï‚·Increasing revenue ï‚·Maintain quality of products and services ï‚·To give proper training to staff in new market Situational analysis Market analysis The profile of Coffeveille consist of the following factors: Geographic: The target of Coffeville is to cover 1000 metre area around cafe Demographic: Male and female, Income of about $20,000 Behavioural factors: Enjoy high quality meal, value ethics and sustainable practices Market trend
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It can be seen that in evolving culture the consumers are searching or in more want of healthier food. While most industries thrives behinds this idea however coffee industry initially wary. As per the research it has been found that about 75% Australians drinks at least one cup of coffee per day. Therefore it can be seen that there is huge opportunity for a CoffeeVille in Brisbane. The rise in demand of ready to drink coffee has also been increased which creates an opportunity for new products in market. PEST analysis Political environment:the government attitude as well as trade relationship between different countries can affect business operations of CoffeeVille. As per the market analysis it has found that Australian government will take initiative in order to grow economy and also contribute in skill growth. Therefore it will be a good opportunity for a cafe to introduce new market plan. Economic environment: The spending power of consumer in particular area may affect the profitability of company. Therefore CoffeeVille charge product prices low and also provide discounts and offers. Social environment: The consumers attitude, belief can affect business operation of company. Therefore CoffeeVille will introduce itself as socially and environmentally responsible company and will conduct various social welfare activities to create good image in minds of customers. The cafe will make business decision by keeping in mind environmental as well as social factors. Technological environment:As the use of internet is rapidly increasing also social networking is becoming one of the effective marketing tool therefore cafe will continue to make effective use of its websites and other online platforms. Key to success: As the competition is increasing in the market, a tough competition can be seen in the coffee industry. Therefore it will be required that CoffeeVille should effectively position itself in the market. From the pest analysis the analysis of coffee industry can be done. By seeing at pestle analysis it can be said that CoffeeVille can make use of the various opportunities which is present in a market. CoffeeVille need to distinct itself from its competitors in Brisbane and the company will use various techniques in order to gain the loyalty of customers and their attraction. The various methods will be used such asoffers, discounts, loyalty cards etc. In order to do so the company
can give information about its beliefs, ethics etc., and can also conduct CSR activities. The CoffeeVille will differentiate itself from other companies in a coffee industry in Brisbane. Also as CoffeeVille has good market image therefore it will help to easy attract customers toward it. The company should try toutilise resources in most cost effective way. And threats should be minimised. And it can be done by correctly positioning cafe in market and by making strategies to deal with competitors effectively. Marketing strategy Mission:CoffeeVille will try to increase its customer base and brand awareness. Marketing objectives: To develop brand awareness by using various online and offline platforms To increase sales by decreasing market expenses Financial objectives 1.To increase the sale of the products by 10% up to year 2020. 2.To increase gross profit by 15% up to year 2021. Segmentation Marketing Manager of CoffeVille will segment the whole market on the basis of various factors like demographic like age, income etc., psychological and behavioural factors etc. Targeting After segmentation, firm will target a particular segment for offering its products to ultimate customers. CoffeVille will target people of age group between 20-50 years age that are having income above$50,000. Positioning CoffeVille will adopt various strategies for positioning the brand image of the products in the minds of consumers. It will use product, price, promotional strategies etc. Strategy pyramid A strategy pyramid is a method which helps to arrange strategies from top to bottom. At top strategies are shown middle use tactics and last or at base of pyramid programmes are shown. The top of pyramid focuses on specific market needs, products offering and service offerings. While the middle of pyramid which is tactics it shows set of marketing message and ways to transmit them. And the bottom of pyramid shows specifics of implementation which include budget, specific milestones date and projected sales.
ï‚·Increase in revenue by marketing campaign ï‚·Maintaining high trained staff ï‚·To increase brand awareness ï‚·To position brands in the mind of customer in respect to high quality ï‚·Increasing foot traffic in cafe by 200 to 300 customers Marketing mix- Marketing mix includes various types of factors that helps an organisation to influence the customers to purchase the product or serviette of the firm (JAIN, 2017). Marketing mix of CoffeVille is as follows- Product: CoffeVille offers a wide range of dairy and vegan free products. It includes coffee beans, tea, sandwiches, farm omelette, sweet corn cakes and pastries etc. CoffeVille focuses on maintaining high quality of the products and these are offered at affordable price to the consumers. Price: CoffeVille adopts premium pricing strategy to offer its products at price more than the price at which competitors are selling their products to the customer's. And will adopt menu pricing. The strategy helps the firm to encourage positive perception among consumers. Price of coffee and tea ranges between $3 to $4. Promotion: CoffeVille uses various promotional tools to communicate message to consumers that it offers high quality products to the customers. It has adopted various methods like advertising through print media, e mail, social media platforms etc. Place: Display of the product helps to influence consumers to buy the product of the firm. Service of catering is performed on the basis of customer specifications. People and customer service: CoffeVille will appoint trained and skilled staff to offer the products to existing as well as targeted segment of customers. Target customers of the company are people of age group
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between 20-50 years age that are having annual income of above $50,000. Skilled employees will help to provide better shopping experience to buyers (Garcia, 2019). Product development Product development is the creation of product with new characteristics which will offer new benefits or additional benefits to customers. The cafe will try to introduce new products by analysing the needs of customers. CoffeeVille will make the changes in its existing products as per the customer requirements and market trends. With the help of this the cafe will try to position its brand in customer mind. c).All components of marketing mix plays an important role. In order to make any product or plan successful it is highly required that each element of marketing mix should be properly seen and strategies are made accordingly. Product plays an important role because it does not represent success of marketing strategy but it also represent the brand. Secondly place is also important as it helps in deciding in which area the product should be placed. Similarly price also plays an important role in marketing strategy. The right strategy as per market help company to achieve success. Promotion of product is yet another important part as it helps to attract customer toward product and service. d). Economic condition: The economic condition of Brisbane such as inflation rate, exchange rate can impact company. However increase in consumer spending on coffee may create an opportunity for company to enter in market. Political environment: Discrimination law, consumer protection law are the laws which has to be followed by every company which is regulating or operating in Brisbane as per governmental regulation. Customer priorities, needs and preferences: Coffee in Brisbane is a big thing. The Australian market has reached about more than revenue of 1.4 billion dollars in year 2017. Therefore as a part of Brisbane as a part of Australia has experienced increase in consumer demand. Recommendations: The demand for coffee pods and capsules has been increasing therefore it will be good for company. Also the consumption of coffee is increasing in Brisbane. Themarketingmixwhichhasbeenrecommendedabovewillhelpcompanyto successfully introduce its Brisbane CoffeeVille.
TASK 3 CoffeeVille company is owned by partners Emma and Rufus Belacastran. Its franchisee will be started in Brisbane. Where company will try to establish it market and will try to use various strategies in order to attract customers in new market. MARKETING MIX Product: As in order to gain the trust and loyalty of customers it is highly required that the company provide high quality products to its customers. The CoffeVeille provide high quality product which is however good strategy for product.The company will use the same products which company is providing in other markets but will make changes in its service offerings. Price:The menu pricing which company use is good as it attract more customers but in some situation it proves good only for customers and not for business. As per menu strategies the customer pays amount as per established price regardless of changes in cost or time which may sometimes make companies to provide products at low or under prices.The CoffeeVille Brisbane will use flexible pricing strategy. Place:The company will locate its shop in such place which are having huge customer traffic so that large amount of customers visit the hotel. However the strategy which is usedfor place by company is good for increasing sales. Promotion:As company is using social networking for promoting product but one of the negative impact of this is that the online platform give opportunity to customers to write wrong orbadreviewswhichhasimpactedtheimageofcompany(Themarketingmix,2019). CoffeeVille Brisbane will promote its product to the local customers by using newspapers as this will help to reach to every age group. People: As the company trains its employees to enhance the customer experience. The company in Brisbane willtry to focus on providing continual training as with the change in time the demand and behaviour of customers should change accordingly. Therefore continuous training should be given which is not provided to the people of CoffeVellie which can also be a reason of failure. Positioning: If we look at its positioning, a company has a good image in minds of customers, the fine and fast services is provided by the staff of CoffeeVille. However it can be seen that company has set a right position in minds of customers.CoffeeVille Brisbane will also represent it to the same way in minds of customers.
3. The cafe should change itspromotional as well as pricing strategies.The reason behind this is that the promotional strategy and pricing strategy which company uses is however good for company if we look at the present scenario but these strategies which company use which are social networking and menu pricing has some limitations. As the promotional strategy which company use which is online platform and social media can result in creating bad image in market by haters or bad customer reviews. Secondly pricing strategies of company should also be changed menu pricing may restrict company from earning profit as per change in time and demand.CoffeeVille Brisbane will use newspapers to attract local customers and flexible pricing strategies for its products. 4. The change in promotional strategy will help company to increase the sales in its product. The company should check its strategies on regular interval. And should look at both positive as well as negative impact of each strategies involved. Therefore by evaluation the negative impact of social media platform and menu pricing can be seen.The change in promotional strategy will help company to attract new customers as well as increase the brand awareness and popularity among the people.Similarly the change in pricing strategies such as involving better, best and good offering will help company to increase sales. Forexample if CoffeeVille will move from menu pricing to flexible pricing than company can make changes in its cafe productspriceas per theirrequirements.It will help company to increase net sales which will result in increase in profit of company. Therefore company should try to make changes in this strategies.The change in strategies may result in increase in overall profit. 5. The change in marketing mix strategies can sometime create negative impact on business. Because as with the change of marketing strategies it might require company to make some changes in its cultural value which might affects the business customs. For example as the changing trend it might require CoffeeVille to introduce new products in its layout which might not is available earlier. Therefore this step may make change in company culture. The change in promotional strategy which is a part of marketing mix will help cafe to get the attention of its customers but may demand change in business customs. 6. The company can use charity event as it will help company to create positive image in market. Also as now a days people become attracted toward company which works for social welfare and who run on ethics therefore this strategy will be quite helpful to gain customers and attaining
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desired position in market. The company will gain the customer attraction and will create brand awareness as a result of which customer will visit the cafe. 7. Budget ParticularsAmount Location rental Table and chairs Security Speakers Video production $ 10,000 $ 2,000 $ 5,000 $ 12,000 $ 10,000 Total$ 39000 TASK 4 1. I)the company has not get successful in identifying the needs of their customers II) The company has done false marketing which is wrong and also loyalty programme which has to be served to customers has also been declined. III)the company has failed to built its brand image in market IV) Also company has aimed at increasing sales by 10 % but this did not happen the campaign has resulted in decrease in sales. 2. Michael's Cafe designed a marketing campaign which was conducted in order to increase sales as well as gain large customer base. The company has hire for marketing consultant for developing advertising campaign. However the campaign run successfully in first week but by the end of second week many customers start complaining about the product and advertisement. Customers claims that the company is doing wrong advertising. 3. Pricing: The company can use price bundling strategy in place of premium pricing. As this pricing strategy is attractive to customers and also this strategy will help business to reduce distribution as well as marketing cost. This strategy will help cafe to increase in sales. Promotion: in order to attract customer Michael's cafe can increase their online presence. As it will help to spread information about products and services offered by cafe to large amount of customers.
Place:Thecompanyshouldmaketheplacestylishandwellfurnishedasnowadays infrastructure plays an important role in attracting customers. The company should set up its cafe in area which is prone to customer traffic so that cafe gain attraction of customers. 4. The strategies or changes which has been selected will help Michael's cafe to meet its objectives, get desired position as well as increase its customer base. For example, many people now a days are active onsocial media therefore changing promotional strategy will help company to gain customer interest which will help to increase the customer base. Also it might be the case that price is restraining customer from visiting cafe.The change in price may make new position in customer mind. CONCLUSION The study helps in understanding the policies and procedures of Australian direct marketing association. The various components of marketing mix is quite essential for an organisation in making strategies for business. The marketing mix plays an important role in marketing process. It is also important for a company to make marketing plan before launching any product in market as marketing plan give an understanding of various aspects such as internal as well as external factors which may affect business, and also ensures that product and services offered is as per the vision of a company.