BSBMKG502 Marketing Mix: Analysis and Application of Concepts

This assignment provides detailed answers to questions related to establishing and adjusting the marketing mix (BSBMKG502). It covers topics such as product availability, pricing strategies (illustrated with examples from Dunhill, McDonald's, and Cold Power), value-added products, distribution channels, customer service, demographics in R&D, the use of social media data for marketing analysis, environmental analysis, consumer behavior influences, and case studies of companies like South West Airlines and Dunkin' Donuts adapting their marketing mix. The assignment also includes a growth analysis for McDonald's products and an evaluation of their breakfast, lunch, and McCafe sections, concluding with recommendations for improving the McCafe section. The importance of monitoring and adjusting the marketing mix based on customer needs and competitive pressures is emphasized throughout.

Answer No. 1:-
A Product or Service is only available in the market or the company tries to untapped the
market to catch market share (Santouridis, I. & Trivellas, P., 2010). For example, the
Royal Flying Doctor Service is providing services to the customers where the patients
cannot easily approach doctors.
Answer No. 2:-
1) Dunhill which is cigarette brand is sold at market price $35.95. As the consumers
are much addicted to the cigarettes and the government is increasing the taxes by
every time, but the consumers are still demanding for the product. (Rad, H.S.,
Akbari, Z. 2014).
2) McDonalds sets the price according to the price of the each component of the
product and demand of such product. For example, Double Spicy McChicken
(Burger) only cost $7.65, whereas Double Spicy McChicken Meal (Large) costs
about $12.70.
3) Cold Power sets the price in accordance to the supply and demand of the product.
The pricing would have some effect on the demand, as if the consumers would be
loyal to the product so there might be possibility that consumers might not switch
to other product.
Answer No. 3:-
The Value Added Product is used to attract more sales which give a charm to buy such
product. Such as the Fab Laundry Liquid is offering a small pack of Fabric Softener
namely Comfort with the product itself.
Answer No. 4:-
Distribution Channels is significant as the Distribution Channel makes the product
approachable to the market. If the distribution channel is strong, then it also makes the
product approachable in remote areas as well.
Answer No. 5:-
The Customer Service has an integral role, as the customers buy the product, so they
want the employee to have a pleasant and polite attitude. Moreover, the employee gives
the full details of such product in a pleasant manner through which attracted to such
product.

Answer No. 6:-
The Demographics are also the part of the R&D while making certain product because
the consumer behavior has a lot of variation. For example, the person whose age is 50
would not wear a colorful hoodie or T-Shirt.
Answer No. 7:-
The Social Media Data has been enormously used in analyzing the marketing strategies
as the Photos, Videos uploaded and following of pages will help to analyze (Donovan R.
and Henley, N., 2010). Secondly, the Website Data and Annual Report also help to
analyze the marketing mix.
Answer No. 8:-
The environmental analysis is conducted through which the external factors would be
analyzed. Now, the demographics i.e. income, age limit, tastes and trends and fashion are
also the part of the environmental factors. Thus the factors of marketing mix would be
affected.
Answer No. 9:-
The basic needs and the demographics and lastly, ongoing trends and fashion would
influence the consumer behavior. The consumer behavior would be affected, thus it
would have influence on marketing mix (Goi, Ch.L., 2009).
Answer No. 10:-
South West Airlines have set low price for short haul distances as they are targeting the
low and medium class customers. They have also positioned itself as the low class
airlines therefore no meal or beverage is offered while travelling.
Answer No. 11:-
The Dunkin Donuts have made a customized menu for the customers for satisfying its
customers. For example, in Korea the Grapefruit Coolata is offered and in Russia the
Dunclairs is offered, which shows the product according to international presence.
Answer No. 12:-

McDonalds have the mission and vision to provide the best food service and quality food
to its customer (Gabrielli, V. and Balboni, B., 2010). Thus, the same is provided
according to the customer needs and demands which a huge customized menu offered to
its customers.
Answer No. 13:-
The monitoring of marketing mix is important as the price set for the product, the image
of the product, providing Value Added Service or Advertising and Placement of the
product should be monitored (Riaz, W., 2011). If it is neglected then the company would
ultimately face losses because the customer’s satisfaction would be low.
Answer No. 14:-
Domino’s Pizza has always given priority to its customers, therefore, in accordance to the
presence in respective country, the menu is also altered and the price is also set in
accordance to the general living standard of the people.
Answer No. 15:-
The marketing mix can be changed in accordance to the needs and circumstances. Like if
the price of the product is high as compare to its rivals, so it is essential to change or at
least lower its prices. However, the budgetary requirements are also important as the
company don’t want to sale product in loss.
Answer No. 16:-
The adjusted marketing mix is the alterations made in the business model in accordance
to the need. Therefore, the actual purpose of doing business is either for profit
maximization or cost minimization. Either of the purpose would be achieved when there
is change in business mode, if needed.

Answer No. 17:-
Total Growth:-
Coffee:-
Last Quarter = 31622 + 32097 + 32257
= 95976
First Quarter = 29121 + 29267 + 29706
= 88904
Contribution Percentage = 95976 – 88904 * 100
88904
= 7.95 %
Big Mac:-
Last Quarter = 24076 + 24677 + 25294
=74047
First Quarter = 19278 + 19760 + 20254
= 59292
Contribution Percentage = 74047 – 59292 * 100
59292
= 24. 88 %
Filet – o –Fish:-
Last Quarter = 6089 + 6242 + 6398
= 18729
First Quarter = 4876 + 4998 + 5123
= 14997
Contribution Percentage = 18729 – 14997 * 100
14997

= 24.88 %
Answer No. 18:-
Breakfast:-
Gross Profit for First Quarter = 59584 + 61074 + 62600
= 183,258
Gross Profit for Last Quarter = 74412 + 76273 + 78179
= 228,864
Through the above figures, it is observed that McDonalds has achieved great results in
Breakfast Section and most people are quite attracted towards the taste of Breakfast. The
above trend shows positive figures, therefore, we can say that Breakfast Section is
working quite good.
Lunch:-
Gross Profit for First Quarter = 77957 + 79906 + 81904
= 239,767
Gross Profit for Last Quarter = 97358 + 99792 + 102,286
= 229,436
Through the above calculations, it is examined that McDonalds has achieved greater
results in Lunch Section as compared to the Breakfast. This shows that people are tend to
visit and eat at McDonalds at the Lunch time and McDonalds is also providing the meat
deals and customer service at the best level.
McCafe:-
Gross Profit for First Quarter = 60873 + 61177 + 62095
= 184,145
Gross Profit for Last Quarter = 66102 + 67093 + 67429
= 200,624

The above calculation of this Section has showed a very slow trend. It seems that
McDonalds has not been much successful in this item. The Environment provided to the
customers or the taste of the Coffee, tea or sweets are not up to the mark. Moreover, the
Starbucks Café is also a strong rival; therefore, McDonalds cannot achieve much profit as
compared to Breakfast and Lunch Section.
Answer No. 19:-
Based on the above calculations, it is evident that McDonalds has achieved positive
results in all the areas, but the McDonalds have to overview their McCafe Section,
because the profit share has been much low as compared to the Breakfast and Lunch. It
can also be seen that Coffee Section is also contributing 7.95 % as compared to Big Mac
and Filet – o – Fish which have contributed 24.88 % and are part of Lunch Section.
Therefore, the McDonalds have to change the marketing mix of the McCafe only.

References:-
Donovan R. and Henley, N. (2010). “Principles and Practice of Social Marketing: An
International Perspective”. Cambridge University Press, New York.
Gabrielli, V. and Balboni, B. (2010) “SME practice towards integrated marketing
communications.” Marketing Intelligence and Planning, Vol. 28.
Goi, Ch.L. (2009), “A Review of Marketing Mix: 4Ps or More?” International Journal of
Marketing Studies., Vol.1, No. 1
Rad, H.S., Akbari, Z. (2014), “The Role of Brand and Advertising in Marketing Mix (A
Review of Marketing Mix). Interdisciplinary journal of contemporary research in
business, Vol. 6, No.7, p.p.114-127/
Riaz, W. (2011) Marketing Mix, Not Branding. Asian Journal of Business and
Management Sciences, Vol. 1 No. 11, p.p. 43-52
Santouridis, I. & Trivellas, P. (2010) “Investigating the impact of service quality and
customer satisfaction on customer loyalty in mobile telephony in Greece”. The TQM
Journal, Vol. 22 (3), p.p. 330-343