Establish and Adjust Marketing Mix for Coffeeville - BSBMKG502 Report

This report presents a comprehensive analysis of Coffeeville's marketing mix, addressing key aspects such as marketing objectives, desired market position, and target market characteristics. The report delves into the various components of the marketing mix, including product, price, promotion, place, and people, and examines their interdependencies. It explores different pricing and promotional strategies, distribution channels, and the importance of each element in developing a successful service or product. Furthermore, the report provides a PEST analysis of Coffeeville, assessing the political, economic, social, and technological factors influencing its operations. The analysis includes an evaluation of customer priorities, needs, and preferences. Overall, the report offers valuable insights into Coffeeville's marketing strategies, providing a framework for understanding and optimizing its marketing efforts.

Running Head: ESTABLISH AND ADJUST MARKETING MIX
Establish and Adjust Marketing Mix
Name of the Student:
Name of the University:
Author note:

1ESTABLISH AND ADJUST MARKETING MIX
Assessment Task 1
1) The two aspects of the Australian Direct Marketing Association (ADMS) Direct
Marketing Code of Practise that should be considered while determining an adjusting the
marketing mix for service or product are as follows:
a) Fabricating the gathering trust and the client trust in the examination, advancing,
media and the publicizing the industry generally and taking into consideration the
promotion of items.
b) Developing models of best practice for treatment and aggregation of the Personal
information transversely over the showcasing and the multichannel media blend.
2) The two aspects of the Australian Marketing Institute Code of Professional Conduct that
should be considered while determining and adjusting the marketing mix for service or
product include:
a) For seeking marketing opportunities, the members require to execute their
professional duties competently, honestly, ethically as well as in good faith without
any personal bias (Wedel and Kannan 2015).
b) Complying with all the rules and making changes whenever required. Member needs
to operate within the limitations of experience.
3) It is to note that it is often required to understand the customers and their cultural and
regional influences. The possibility of a Chinese or an Indian customer bargaining at
retail store is higher than that of any American customer. This further affects the
promotion and the pricing set for the product.
4) Product positioning is an important component of marketing mix as it helps the marketers
in determining how to communicate best about the products and their attributes to their

2ESTABLISH AND ADJUST MARKETING MIX
target market. It is not only the goods, services and materials but also indicates the
quality, packaging, brand, colour, price, goodwill and the seller’ service.
5) Product life cycle refers to the set of different stages that a product goes through during
its lifetime. There are four main stages of product life cycle and they are:
1. Introduction stage- In this stage, product or service is developed considering the
needs of the customers and are introduced in the market through commercial
production.
2. Growth stage- In this stage, sales start to grow rapidly
3. Maturity stage- Sales in this stage increase slowly and there is intense competition in
the market.
4. Decline stage- In this stage, sales get fail and the product loses its appeal.
6) The three different pricing strategies that a business could make use of are- customer
values based pricing, competition based pricing and the cost-based pricing.
a) Cost based pricing- It is when the price is determined by adding profit element on the
top of cost of making the product. It is widely used when the retailers wants to know
with some certainty what the gross profit margin of every sale will be.
b) Competition based pricing- It is where the competitors’ prices are the major influence
on the price set. It is to note that majority of the companies in a competitive market
do not have ample of power to become able to set the prices above their competitors.
They ten tend towards using “going rate” pricing.
c) Customer-based pricing- It is determined by what a company believes that the
customers would be prepared to pay. It is mostly linked with marketing objective of
increasing the share or market or the volume of sales.

3ESTABLISH AND ADJUST MARKETING MIX
7) It is beneficial to consider the price component of the market mix as of the fact that it is
simple, less risky and is highly accurate. In the saturated industries such as retailing, it is
fairly accurate as for majority of the consumer products, there are thousands of customers
and enough data for moving the pricing closer towards market based methodology.
8) The three promotional strategies that a business could use are-
a) Product giveaways and samples- It is usually used by the cosmetics industry. They
offer a gift with purchase to the customers.
b) Personal marketing- Oriflame makes use of this promotional strategy to promote its
products.
c) Social media promotion- Coca-Cola has a significant presence in social media where
it shares thousands of campaigns and promotional related strategy.
9) The three different distribution channels are:
a) Wholesaler- They are the companies that buys in bulk from the companies and then
resells the products through one of the channels.
b) Retailer- They acts as a linkage in between the end customer and the wholesaler and
they work in a one-level distribution channel
c) Manufacturers- They manufactures the products and they distribute them to different
places.
The three examples of products that make use of more than one distribution channels are
Unilever, P&G and Coca-Cola (Challagalla, Murtha and Jaworski 2014).
10) The three extra Ps of the extended marketing mix are-
a) People- People are the workforce that is responsible for designing and implementing
every policy and strategy for achieving organizational goals.

4ESTABLISH AND ADJUST MARKETING MIX
b) Physical evidence- The final evident of the three additions to the basic marketing mix.
It is the environment where the service is delivered and where the company and the
customer interact as well as any other tangible components that facilitate the
communication and performance of service. The bank branches, restaurants and retail
premises are examples of physical evidence.
c) Process- It is the combination of different consecutive things and objects that might
enable a manager for achieving certain goal in well-structured manner. Marketer
needs to develop some of the processes in terms of marketing decisions like
promotional campaign, segmentation process etc.
11) Descriptive statistics, regression analysis and cross tabulation.
12) Trend analysis is very helpful for business improvement. One could develop a strategy
for responding to these trends in line with the business related (Turker and Altuntas 2014)
. It further helps in understanding how the business has predicted and performed where
the current business practices and operations.
13) The sales data analysis helps in delivering a return on the investment of about 15% to
20% for the company. It further narrows down the offering and increase the sales on the
low volume accounts while enhancing the pipeline management.
14) Leading indicator is the economic factor that changes prior the rest of the company starts
for going in a particular direction. They help the market observers and the policymakers
that predict notable changes in economy.

5ESTABLISH AND ADJUST MARKETING MIX
Assessment Task 2:
Introduction
This report shall elaborate on presenting a report on Coffeeville, highlighting its
marketing objectives, the desired position that it like to see itself in the upcoming days along
with its target market characteristics. A brief analysis of the different components of marketing
mix for Coffeeville shall also be described below.
Discussion
Part 1
Marketing objectives
a) Increasing the foot traffic to 300 from 250 customers everyday
b) Increasing the level of brand recognition to ensure about 8 in every 10 person within the
area is recognising the brands in the survey that the company will conduct.
c) Establishing good will to ensure 7 out of 10 people within the area rate the company as
environmentally and socially responsible.
Desired position
a) To become number one provider of superior coffee experience and the supplier of
gourmet food in the CBD and surroundings
Target market characteristics
The target market of the business shall be divided into three segments- individual
takeaway (people between the age group of 20 to 60 years and holds an income of more

6ESTABLISH AND ADJUST MARKETING MIX
than 40,000$), individual sit down (belonging from the age range of 35 to 0 with an
income of more than 60,000$) and groups of people from business catering or
organisations (belonging from the age range of 35 to 0 with an income of more than
60,000$).
Part 2
Marketing Mix
Product
It would supply finest quality of:
o Coffee beans
o Ground fresh
o Gourmet focaccia
o Pastries and cakes
Price
Competition based pricing shall be used to set the prices of the products. Slightly higher
prices will be set as compared to customers to signify brand prestige and higher quality.
Promotion
To promote the products and services following promotional tools would be used:
a) Advertising in the local magazines
b) Direct mail to the local business
c) Encouraging customer reviews and articles in the local magazines

7ESTABLISH AND ADJUST MARKETING MIX
d) Social networking
e) Ensuring online presence.
Place
a) Individual takeaway- About 70 percent of the business is predicted from takeaway
customers and this means that areas with customer traffic is likely to be free from
obstruction for increasing the speed of service.
b) Individual sit down- Premises for the sit down clientele segment
c) Groups of people from business catering or organisations- Lastly, catering would be
delivered as per the specifications of the customers.
People and Customer Service
The business would continuously train its staff to ensure that they both offer the service
that are expected by the market as well as can become the good will ambassadors for the
business.
Part 3
Importance of each of the 5 components of marketing mix and how they work with one
another for developing greater service or product
The product component of marketing mix refers to the services and products that are
offered by the business. They include packaging, warranty, appearance, function, quality etc.
(Kindstrom and Kowalkowski 2014). Customers are required to understand the benefits,
disadvantages and features that they could experience after buying or using the good or service.
The price component of marketing mix is all about the pricing strategy for the services and

8ESTABLISH AND ADJUST MARKETING MIX
products and the way it would influence the customers. It include selling price, payment
arrangements, discounts, price matching service and credit terms. However, while determining
the same, it is vital to consider the business’s position. Furthermore, promotion is all about the
activities that make the business more known to the customers. It comprise of the items like
advertising, public relation related activities and sponsorships (Bocken et al. 2015). Place further
refers to where the service and product of the business is seen, sold, distributed and made. It is
important for considering how easily accessible the service and product is and is related to
People. People are the staffs and the salesperson who work for the betterment of the business.
An example of how varying one (1) component of the marketing mix will affect the other
components.
For example, if we take i-Phone as the product with advanced leading edge performance
and high quality camera with vast app ecosystem. If the price of this phone is kept cheap then it
would be a huge loss for the company and its revenue (Inkiriwang and Winter 2012). This is
why, the price is set depending on the phone configuration. Furthermore, if promotion is not
done widespread, launching PR, extensive online and other media advertising then it would be
difficult for the customers to perceive the brand as of high prestige and high quality.
Furthermore, to increase customer access and sales of the iPhone, the company needs to supply it
through different distribution channels to the customers. Employees of the company (people)
plays a major role in customer retention and loyalty through providing good customer service.
Part 4
PEST analysis
 Political

9ESTABLISH AND ADJUST MARKETING MIX
o The company would require to focus on future legislative direction
 Economic
o Customers might refrain from buying big ticket items but many of them would
pamper themselves with fine food and coffees for compensation.
 Social
o Coffeeville will be focused on promoting itself as socially responsible and
environmental friendly company and would conduct its business operations
accordingly.
 Technological
o Coffeeville will continue making use of its websites and its social networking
platform for reaching its target markets.
Customer priorities, needs and preferences
a) Choice of popular hot and service options
b) Accessibility of wheelchairs
c) Street level premise
d) Easy access of café and with minimal wait
e) Competitive and reasonable pricing
f) Environmentally responsible and ethical business practises.
Recommendations
Addition of espresso based coffee drinks like cappuccinos, mochas and lattes with proper
presentation. This will help the company to cater more customers while providing them every
items related to coffee.

10ESTABLISH AND ADJUST MARKETING MIX

11ESTABLISH AND ADJUST MARKETING MIX
Assessment Task 3:
1 (a) Identified Reasons for Sales Decrease
Projected and actual income budgeted indicated a decrease in sales for its beverage and
catering department. The components within the company’s marketing mix in identifying the
possible reasons for such decrease is indicated below:
 Product: The quality of the coffee beans offered by the company is observed to get
declined than the previous years because of which the consumers do not prefer to
purchase its coffee beans contributing to decreased sales. Consumers’ complaints were
received that stated the coffee beans to be tasteless and bland and the reason behind this
was that the coffee beans delivered by the suppliers recently were poorly extracted
(Adeleke 2019).
1 (b) Campaign Developed in Addressing Identified Problems
After observing the issues faced by faced by the coffee shop an effective promotional
campaign will be develop that can support in boosting sales. As the reason of decreased sales
was sourcing of poor coffee bean products resulting in consumers to obtain poor quality of
coffee products, the campaign will consider sourcing a new supplier of high quality coffee beans
and promoting the same among all its target and existing consumers (Anggadwita et al. 2019).
The company will consider using content marketing techniques in promoting its premium coffee
beans sourcing from new suppliers. This marketing campaign will include creating detailed
brewing guides along with its process of buying, storing and brewing great coffee on social
media sites. This campaign can make all its consumers aware of its product development and

12ESTABLISH AND ADJUST MARKETING MIX
introduction of sustainably sourced exceptional quality coffee beans that can further result in
boosted sales (Beltrán Fuentes 2017).
1 (c) New Idea in Increasing Sales
This campaign of sourcing high quality coffee beans from new suppliers and promoting
the same among consumers is deemed to increase sales margin at an expected rate of 10%
annually. The idea of choosing a different supplier that can offer sustainably sourced and picked
coffee beans will ensure the superior quality and taste of coffee beverages made from brewing
such beans which can generate likability among its consumers (Flores et al. 2017). Sustainably
sourced coffee beans can further enhance its coffee beans quality offering supporting boost in the
sales margin. This is for the reason that promoting the sustainably sourced coffee beans from a
different supplier as organic can offer information to all its consumers regarding heath benefits
of consuming such coffee (Higdon 2016). This content marketing campaign can facilitate in
puling leads and retaining the existing consumers as the targeting consumers visiting the social
media site of the company will learn about great coffee and the enhanced taste they can enjoy
from the freshest beans supplied to them.
1 (d) Changes in Marketing Mix
Coffeeville intends to position itself as a coffee shop that offers sustainability sourced
organic coffee beans that can offer exceptional premium tasting experience to its consumers. The
target consumers characteristics of the coffee shop is observed to include individuals that value
quality, ethical and sustainable practices, enjoy high quality meal and are generally office
workers (Huang and Wood 2017). Certain changes are suggested in the marketing mix of
Coffeeville that can support the coffee shop in attaining its business objectives, desired
positioning and will be aligned with the characteristics of target market. The business objectives

13ESTABLISH AND ADJUST MARKETING MIX
of Coffeeville after changing its marketing mix strategies includes attainment of 15% increase in
overall sales annually and to increase consumer awareness along with consumer base by 8%
annually. Modified marketing mix strategy of the company is indicted below:
 Product: Coffeeville will sustainable source its organic coffee beans from a different
supplier that has high reputation in offering super quality and carefully picked coffee
beans ensuring exceptional taste experience for target consumers (Kim, Kim and Lee
2016).
 Price: The coffee shop will follow premium pricing strategy in which it will keep prices
of its coffee bean products high in order to indicate premium and superior quality of
product in the market. Coffeeville intends to position itself as a coffee shop that offers
sustainability sourced organic coffee beans that can offer exceptional premium tasting
experience to its consumers (Lee 2016).
 Place: Coffeeville Café will sell its blended coffee beans products from their Queen St
Premises and also through online retail stores in an attempt to increase accessibility of its
product range.
 Promotion: The promotional campaign of sustainable sourcing organic high quality
coffee beans will be done through its strategically placed advertisements such promoting
engaging contents on organic coffee beans within weekly magazines and in the social
media channels such as YouTube, Facebook and Twitter (Morland 2017).
1 (e) Promotional Strategy for Developed Campaign
The best selected medium to market and promote the company’s campaign of sourcing
premium quality coffee beans from a different supplier that ensures all the coffee beans are
organic and extracted in the best possible manner is through careful handpicking. Moreover, the

14ESTABLISH AND ADJUST MARKETING MIX
promotional campaign of sustainable sourcing organic high quality coffee beans will be done
through its strategically placed advertisements such promoting engaging contents on organic
coffee beans within weekly magazines and in the social media channels such as YouTube,
Facebook and Twitter (Park et al. 2015). Another marketing strategy for the coffee shop will be
through strategic relationships with other coffee shops that has similar consumer demographics
like this company. Marketing its new premium quality sourced coffee beans through strategic
relationships can be mutually advantageous as both organizations can develop visibility for one
another ensuring attainment of increased consumer base. Other forms of advertisements can also
encompass grassroots methods in which the consumers will be offered with free gift and discount
coupons for them as well as their friends to try out the new coffee beans blend (Ramalingam and
Alexander 2017). Promoting the sustainably sourced coffee beans through this advertising
campaign can serve as an economic incentive and act as medium of coffee shop referral in
promoting coffee beans.

15ESTABLISH AND ADJUST MARKETING MIX
1 (f) Estimated Marketing Budget
The estimated marketing costs for the decided campaign to attain success in the market and boost sales are indicated below:
Marketing Budget
Budget
Categories
Tota
l
Bud
get
Year
To
Date
Spe
nd
Budg
et
Rem
ainin
g
%
Rem
ainin
g
Jan Feb Mar Apr M
ay Jun Jul Aug Sep Oct Nov Dec
Software &
Subscriptions
$25,
000
$61,
000
-
$36,
000
-
144
%
$15
,00
0
$15,00
0
$15,
000
$15
,00
0
$1,0
00
Public
Relations
$10,
000
$20,
820
-
$10,
820
-
108
%
$50
0
$20,00
0
$10
0
$
5
0
$20 $25 $50 $75
Advertising
(print)
$8,0
00
$1,1
40
$6,8
60 86% $30
0
$60
0
$20
0 $40
Advertising
(online)
$60,
000
$55,
000
$5,0
00 8% $5,
000 $5,000 $5,0
00
$5,
000
$
5,
0
0
0
$5,0
00
$5,0
00
$5,0
00
$5,0
00
$5,0
00
$5,0
00
Content
Production
$20
0,00
0
$34,
000
$166
,000 83% $50
0
$30,00
0
$50
0
$1,5
00
$1,0
00
$50
0
Events &
Sponsorships
$10,
000
$61,
500
-
$51,
500
-
515
%
$20
,00
0
$40,00
0
$1,0
00
$50
0
Creative
Agency Fees
$7,0
00
$24
0,00
0
-
$233
,000
-
3329
%
$20
,00
0
$20,00
0
$20,
000
$20
,00
0
$
2
0,
0
0
$20,
000
$20,
000
$20,
000
$20,
000
$20,
000
$20,
000
$20,
000

16ESTABLISH AND ADJUST MARKETING MIX
0
Contact Lists $6,0
00
$14,
300
-
$8,3
00
-
138
%
$12
,00
0
$2,0
00
$
3
0
0
General
Admin
$5,0
00
$3,2
60
$1,7
40 35% $50 $340 $2,0
00
$40
0
$
2
0
0
$50 $20
0 $20
Membership
s &
Associations
$5,0
00
$26,
000
-
$21,
000
-
420
%
$0 $10,00
0
$5,0
00
$1,
000
$10,
000
Totals
$33
6,00
0
$51
7,02
0
-
$181
,020
-54%
$73
,35
0
$140,3
40
$49,
600
$42
,20
0
$
2
5,
5
5
0
$26,
570
$26,
240
$36,
025
$25,
070
$25,
575
$26,
500
$20,
000
Cumulative Spend
$73
,35
0
$213,6
90
$26
3,29
0
$30
5,4
90
$
3
3
1,
0
4
0
$35
7,61
0
$38
3,85
0
$41
9,87
5
$44
4,94
5
$47
0,52
0
$49
7,02
0
$51
7,02
0

17ESTABLISH AND ADJUST MARKETING MIX
Assessment Task 4:
Answer to Question 1: Non-Compliance of Michael's Café with their Policy
From analyzing the marketing policies of Michael's Café four procedures have been
identified where the company has failed to comply with their own policy.
 Advertisement procedure of the company failed to company with its policy of ethical
advertising campaign as several consumer complainants were made regarding false
advertisement claims (Seminario and Mendoza 2018).
 Procedure of building consumer loyalty by means of consumer service experience failed
to align with its marketing policy of offering exceptional consumer service as a drastic
decline in their loyalty programs has been observed.
 Procedure of promotional campaigns suggesting the premium coffee beans will increase
metabolism resulting in weight loss indicated non-compliance with its marketing policy
of guaranteeing highest level of consumer services as such promotion was claimed false
by consumers.
 Procedure of positioning itself as an upscale the coffee house failed to comply with its
ethical marketing policy to promote honesty, fairness and responsible marketing as the
company sold low standard and low cost non-organic coffee bean blend with premium
coffee in decreeing expenses and promoted them as premium offerings (Tuten and
Solomon 2017).
 Indicated non-compliance with the marketing policy of maintaining a loyal consumer
base as the company was losing its consumers because of selling low standard organic
beans as premium exotic beans.

18ESTABLISH AND ADJUST MARKETING MIX
Answer to Question 2: Evaluation of Advertising Campaign Success
The advertising campaign of Michael's Café had an objective of increasing sales by 10%
yearly and developing consumer loyalty. However, the company’s advertising campaign failed
resulting in dropped sales and consumer loyalty program success. Such decline is observed
because of the reason that the advertising campaign was relied on suggesting that their premium
blend of exotic coffee beans can increase metabolism and aid weight loss. Such advertising
campaign was claimed false by several consumers and they dropped several complaints that
dropped the company’s weekly sales. Misrepresentation of coffee bean products increased
consumer dissatisfaction towards the products resulting in dropped sales and loyalty program
consumers (Song, Kim and Kim 2016).
Answer to Question 3: Suggested Marketing Mix Changes
It is assumed that Michael's Café will continue to offer its coffee blend with premium
organic beans; certain necessary changes are suggested within the marketing mix of the coffee
shop to successfully increase sales after making changes in the product.
 Product: Michael's Café is intended to offer coffee bean blend of their premium coffee
beans and low standard non-organic beans in order to decrease their expenses. This new
product brand will be given brand names and logos and this new coffee product blend
will be dairy, gluten and nut free that will cater to consumers having allergies to such
items (Tuten and Solomon 2017).
 Price: Michael's Café will consider selling its product ranges through following
penetration pricing strategy in which lowest prices will be set for such blended coffee
product to attract target consumer base. This pricing strategy will also facilitate in
increasing market share by setting low price than competitors (Strengell 2017).

19ESTABLISH AND ADJUST MARKETING MIX
 Place: Michael's Café will sell its blended coffee beans products from their Queen St
Premises and also through online retail stores in an attempt to increase accessibility of its
product range (Tuten and Solomon 2017).
 Promotion: Existing promotional strategy of Michael's Café will be changed to include
engaging sales staff in word-of-mouth and public relations campaign regarding
promotion of benefits of the coffee beans in attaining its marketing objective of improved
product image and consumer recognition (Tuten and Solomon 2017). The promotional
campaigns on social media channels like Face book, YouTube and Instagram will
promote its exotic blend of coffee beans products as allergen free for consumers that are
sensitive to dairy, gluten and nut products.
Answer to Question 4: Changes Impacting Michael's Café's Marketing Objectives,
Customer Base and Position
Changes in the marketing mix strategy of Michael’s Café are deemed to impact or alter
its existing marketing objectives, consumer base and its desired market position. Changes in the
promotional strategy for the exotic coffee bean blend through carrying out large scale advertising
can facilitate the company in attaining its marketing objective of improved product image and
consumer recognition (Tuten and Solomon 2017). Moreover, offering discounts, free gifts or
launching new loyalty schemes of its new coffee bean product range can facilitate the company
in increasing product depth and recognition among consumers that can further increase consumer
base of the company. Moreover, penetration pricing strategy followed by Michael’s Café can
facilitate in increasing purchase intention of consumers that can give boost to its market share
(Tuten and Solomon 2017). In addition, engaging sales staff in word-of-mouth and public

20ESTABLISH AND ADJUST MARKETING MIX
relations campaign regarding promotion of benefits of the coffee beans can improve brand and
product image of Michael's Café (Tuten and Solomon 2017).

21ESTABLISH AND ADJUST MARKETING MIX
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