Report on Establishing and Adjusting the Marketing Mix (BSBMKG502)

This report provides a comprehensive analysis of the marketing mix, encompassing the seven Ps (product, price, place, promotion, physical evidence, people, and process) and their strategic application. It delves into the importance of consumer behavior, the product life cycle, and various pricing strategies such as market penetration, price skimming, and bundle pricing. The report explores promotional strategies including social media marketing, cause-related marketing, and branded promotional gifts, along with distribution channels like direct selling and dual distribution. Furthermore, it examines the external environment using PESTLE analysis, focusing on political, economic, social, technological, legal, and environmental factors. The report includes a marketing plan for CoffeVille, outlining market analysis, target demographics, and key success factors. It also discusses the use of sales data and leading indicators for business performance improvement.

BSBMKG502 Establish and Adjust the
Marketing Mix

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
External environment.............................................................................................................6
Marketing plan........................................................................................................................7
TASK 3..........................................................................................................................................12
TASK 4 .........................................................................................................................................14
CONCLUSION .............................................................................................................................15

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).

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 hearts and 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 :
Government of the country has developed various laws to ensure environmental
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:
 Increasing revenue
 Maintain quality of products and services
 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

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 as offers, 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 to utilise 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.

 Increase in revenue by marketing campaign
 Maintaining high trained staff
 To increase brand awareness
 To position brands in the mind of customer in respect to high quality
 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

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.
The marketing mix which has been recommended above will help company to
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 used for 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
or bad reviews which has impacted the image of company(The marketing mix, 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 will try 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.