Macquarie University College WMKT101 Marketing Fundamentals Project

This project analyzes various aspects of marketing through real-world examples. The project covers market research and its application in Amazon's marketing plan, comparing Apple and Samsung's product competition, and a PESTEL analysis of Vietnam Airlines. It includes a SWOT analysis of McDonald's, examining the successes and failures of Coca-Cola, and exploring segmentation, targeting, and positioning strategies of H&M. The project aims to provide a comprehensive overview of marketing strategies and tactics, using examples from 2016-2018, as per the assignment brief for Macquarie University International College WMKT101 course, with a total word count of 1800 words. The project includes references and a bibliography to support the analysis.

Running Head: MARKETING FUNDAMENTALS
Marketing Fundamentals
Name of Student
Name of University
Author note

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Question 1: Marketing research and its use in a marketing plan.
Company: Amazon
Amazon’s strategy to invest time and money in research to emerge as an agile
organization has paid off profitably. Then agile approach that the managers of the company have
towards every business operation is one of the major contributors to its immense success. Each
department in the operating sections are dedicated to conducting market researches with the aim
of formulating a lucrative marketing plan. For example, developers are asked to research and test
the differences in user interfaces so that they always aware of the customers’ response to
updates. The research allows them to collect enough data to ensure that the community demand
the updates they launch and stick to, for business purpose (Zeisar 2015). Amazon’s million dollar
expenditure on research and testing consumer behavior in market led to numerous new offerings
to the company’s portfolio. Amazon Prime, which initially began as a service that offers free
shipping on unlimited orders for 79 dollars a year, has now expanded into becoming a large
entertainment platform with the addition of new streaming entertainment like e-books, TV series,
music and so on. The research and subsequent planning has manifested itself best in Amazon’s
tech business. It has become the fourth largest company in the world in terms of software
development. The market research of Amazon has led them to a very clear path in pricing. The
value propositions backed up by the thorough market research have created satisfied customers
who are content with their budget being met while not having to compromise with quality.
Amazon’s market research also revealed what people exactly wanted out of their online market
experience and the plan was strategized to make it convenient, easy and quick for the (Chick and
Handfield 2014) . The new provisions of one-click purchase and “Earth’s biggest selection” are

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tactful ways of implementing the plan. The personalized experience offered to individual
customers took months of research before executing the plan into action.
Question 2: Product competitors of a favorite company
Company: Apple (iPhone), Competitors: Samsung
As of May 2016, Samsung beat Apple by accounting for 37% (Statista 2018) of total
market sales in smartphones while apple accounted only for 28% (Statista 2018). After Samsung
launched the galaxy series in the market, it meant increased competition for iPhones. Samsung’s
exclusive android features coupled with massive advertising made the brand one of the most
popular for smart phones. The growing popularity of Samsung triggered the developers of
iPhone to come up with new strategies and marketing objectives to revive strength and visibility
in the market (Kim et al 2016). In terms of innovations and technology, Apple has been
advancing with the introduction of personalized features and new applications for attracting more
customers. Apple earlier did not have as much social media visibility as Samsung, and that is one
of the major reasons for the latter’s success. For brand promotion, Apple has now transformed its
traditional approach to brand promotions and connects with major online platforms for reaching
out to a wider target audience base. The advertising campaigns of Apple are known for its witty,
clean and clear interface. The white background of apple advertisement is particularly alluring
for users and the company has always highlighted the advantages of using the product
successfully to the target audience. However, the blue and white interface of Samsung
advertisements have compelled Apple to redesign their promotional strategies and television
commercials featuring their product. Apple recently launched the “Your Verse” application how
different people can use iPhones differently to suit better their personal requirements. This was
probably in response to Samsung’s “Incredible Art Piece” campaign which was designed for

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promoting the pen style Galaxy Note. While Samsung prioritizes entertainment, Apple has the
upper hand in publicity and innovation in marketing. After Samsung dominated the center and
front at the Oscars, Apple generated a buzz in the music industry by partnering with Dr. Dre and
Marian Hill.
PESTEL analysis on Vietnam Airlines
Political factors- Like most countries, Vietnam Airlines operate within a political
environment and the Vietnamese government is quite strict about policy mistakes. The
government has every likeliness of intervening in economic operations of particular industries, a
significant one of which is the airline industry. Government intrusions may sometimes be
necessary to ensure passenger safety and protect national interest. In case the Vietnam Airlines
schedule more international flights, the political factors would be difficult to overcome.
Economic factors- Developing the engine and introducing new aircraft accessories can be a real
challenge since Vietnam is prone to suffering a stunted economic growth. Additionally, the GDP
and disposable income are also determinants of economic growth; lower the national income,
harder it is for then aircraft industry to make progress in terms of innovation and inclusion of
new mechanical components (Pearson et al 2015).
Social factors- Travel preferences have changed remarkably over the years. The preferences are
heavily dependent on the demographic factors. For instance, the millennial generation in
Vietnam prefer traveling by land rather than spending more on airlines. On the other hand, older
people prefer airplanes to trains. Vietnam is a developing country and only a limited population
is economically stable enough to afford flights which are usually priced high.
Technological factors- Since a country like Vietnam cannot avail capital easily, it imposes
technical challenges on the aircraft industry. Additionally, using advanced technology on aircraft

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industry may increase fuel consumption and have hazardous impacts on the environment.
Technological efficiency is nevertheless indispensable for safe and sound functioning of the
aircraft industry.
SWOT analysis of McDonalds
McDonalds have consistently outperformed the large-scale food companies in the world,
and the advantages of the company continue to extend with new sales opportunities each month.
The company uses an estimation of its strengths, weaknesses, threats and opportunities to guide
decisions related to marketing plan. A SWOT analysis of McDonalds is a useful reference for
formulating a concrete and effective marketing plan.
Strengths- The stores are spread all over the world so the company collects revenues in several
currencies. The constant inclusion of new items such as smoothies, burgers and coffees expand
the range of choices in the menu card thus, drawing in more customers. Adopting the food items
in the menu to suit a wide range of pallets is a viable marketing plan since the company has gone
international and serves people from all corners of the world.
Weaknesses- Finding ideal locations is going to become more and more difficult in a rapidly
emerging world. Most urban cities are highly saturated with food joints and restaurants.
International growth of what was once a regional company might impose cultural challenges in
many locations. Although the hike on annual dividend is likely to rise steadily, the growth rate
in dividend is slowing and might even level off in ensuing years.
Opportunities- McDonalds has extremely profitable opportunities in locations outside the United
States. Asian populations have displayed particular preference for the food items offered at
McDonalds. The interest rates in these countries are quite low allowing cheap capital for the

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growth of the business. The company is aiming to open more outlets in developing countries
since the cost of production is low and the demand is usually high.
Threats- The government regulations often target fast food companies like McDonalds while the
company continues to encounter considerable challenges from rival firms such as Burger King
and Yum!Brands. Increase in commodity price would also increase cost of production which is
difficult to balance in a weak economy. McDonalds aims to launch a new range of healthy food
items to avoid governmental interferences and please the health-conscious consumer.
Success and failure of Coca-Cola
International companies such as Coca-Cola have secured a reputable position in the
market following a series of trial and error methods and some of the failed marketing strategies
helped the company achieve success in the future. The company has seen immense success in
terms of sponsorship and advertisement (White 2018). The brand has sponsored the famous TV
show “American Idol” which proved a major success as viewers of the show started preferring
Coca-Cola over other soft drinks since the show and its participants endorsed the brand in all the
ten seasons. The involvement in the Olympic sponsorship in 1928 led to a long-term partnership
between the brand and the game. Coca-Cola has used social media as a useful tool for marketing
and that alone accounts for a considerable part of its success. However, Coca-Cola had failed
miserably in 1992 while attempting to launch the “New Coke”, which was a replacement of the
original formula. The alteration was not well-received by majority of the regional drinkers and
the international market too did not have a high demand for new coke. The change in taste
triggered protests among loyal consumers, even boycotts in several cities. Even the bottlers of
the company started expressing concern. The failure was the consequence of a hasty decision

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taken by the company without prior market research and experiments. This is a significant reason
why companies should conduct thorough market researches before executing a plan into action.
Segmentation, targeting and positioning in marketing
Company: H & M
The demographic segmentation of H & M is wide enough for international access. The company
targets middle class customers and the extensive consumer base allows the company interpret
different fashion trends and redesign clothes and accessories that caters different cultures. H &
M is one of the environmentally brands and this influences the decision-making process of
consumers. The company also creates different value proposition for different groups of
consumers so people who get too worked up with traditional designs are likely to opt for H & M.
The target audience is budget-minded shoppers which is highly beneficial for the scope of the
business and suits while the sustainability policy is favorable for building good brand reputation
(Delirium 2018) . The behavioral aspect of the target market also influences product sales. Many
readily available substitutes for fashion products might lower the usage as well as the benefits of
the brand. The leading competitors of H & M are Zara, Uniqlo, and Gap. H & M’s affordability
is the reason why people prefer the brand over the competitors. The company has tactfully kept
tabs on the current sales and initiated fashion movements via E-commerce and social media. This
has helped the company to reach out to a wider variety of consumers and build a favorable brand
reputation. The long-term customers of the company are highly satisfied with the variety of
clothing style offered at cheap prices, the environmental friendly production process, and the
hassle-free buying procedures (both online and manual). Some barriers to new market entry
include fierce competition, multiple substitutes, lack of skilled and technical labor and little
capital.

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References and bibliography:
Chávez, A.B., Broadbent, E.N. and Zambrano, A.M.A., 2014. Smallholder policy adoption and
land cover change in the southeastern Peruvian Amazon: A twenty-year perspective. Applied
Geography, 53, pp.223-233.
Chick, G. and Handfield, R., 2014. The Procurement Value Proposition: The Rise of Supply
Management. Kogan Page Publishers.
Delirium, P. (2018). Marketing Strategy H&M. [online] Academia.edu. Available at:
http://www.academia.edu/12881172/Marketing_Strategy_H_and_M [Accessed 21 Dec. 2018].
Kim, Y., Dwivedi, R., Zhang, J. and Jeong, S.R., 2016. Competitive intelligence in social media
Twitter: iPhone 6 vs. Galaxy S5. Online Information Review, 40(1), pp.42-61.
Pearson, J., O'Connell, J.F., Pitfield, D. and Ryley, T., 2015. The strategic capability of Asian
network airlines to compete with low-cost carriers. Journal of air transport management, 47,
pp.1-10.
Pyo, S., 2015. Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), pp.253-281.
Statista. (2018). Iphone sales - statistics and market data - Statista. [online] Available at:
https://www.statista.com/stats/iPhone%20sales [Accessed 21 Dec. 2018].
Statista. (2018). Samsung smartphone sales worldwide 2010-2018 | Statistic. [online] Available
at: https://www.statista.com/statistics/299144/samsung-smartphone-shipments-worldwide/
[Accessed 21 Dec. 2018].
Tanner, J. and Raymond, M., 2015. Principles of marketing. University of Minnesota Libraries
Publishing.

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White, W. (2018). Coca-Cola Marketing Strategy: Recipe for Success. [online] Inevitable Steps.
Available at: http://inevitablesteps.com/marketing/coca-cola-marketing-strategy/ [Accessed 21
Dec. 2018].
Zeiser, A., 2015. Transmedia Marketing: From film and TV to games and digital media. Focal
Press.