Assessment I - Marketing Strategies
Assessment I - Marketing Strategies
Assessment I - Marketing Strategies
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Details of Assessment
Term and Year Time allowed
Assessment No 1 Assessment Weighting 60%
Assessment Type Individual Strategy Report
Due Date Week 7 Room
Details of Subject
Qualification BSB61315 Advanced Diploma of Marketing and Communication
Subject Name Marketing Strategies
Details of Unit(s) of competency
BSBMKG605 Evaluate international marketing opportunities
BSBMKG606 Manage international marketing programs
Unit Code (s) and
BSBMKG608 Develop organisational marketing objectives
Names
BSBMKG611 Manage measurement of marketing effectiveness
Details of Student
Student Name
College Student ID
Details of Assessor
Assessor’s Name
Assessment Outcome
Assessment
Competent Not Yet Competent Marks / 60
Result
Feedback to Student
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:
The purpose of this assessment is to assess the student in the following Competent Not Yet
learning outcomes: (C) Competent
(NYC)
BSBMKG605 Evaluate international marketing opportunities
1.1 Assess international trade patterns and identify their likely importance for the
business
1.2 Research international business and electronic commerce market factors, and
assess opportunities to enter, shape or influence the market for their likely
contribution to the business
1.3 Identify international markets operating under free trade or protectionist
arrangements and estimate likely ease of entering and trading successfully
1.4 Identify international trade policies and agreements and estimate their likely
impact on international marketing opportunities
2.1 Identify and analyse impact of economic, political, social and cultural factors
affecting international marketing opportunities
2.2 Investigate international market trends and developments to identify market
needs relevant to the business
2.3 Identify new and emerging business and electronic commerce markets, and
assess opportunities to enter, shape or influence markets based on their fit with
business goals and direction, and their likely contribution to the business
3.1 Analyse and rate acceptability of political, financial stability and corruption risk
factors of potential market
3.2 Analyse and rate acceptability of legal and regulatory requirements, and trade
barriers to potential market
3.3 Relate risk factors to international business cycles in terms of economic
conditions and estimate their impact on potential market
4.1 Identify and analyse international marketing opportunities according to their
likely fit with the organisation’s goals and capabilities
4.2 Evaluate each opportunity to determine its impact on current business and
customer base
4.3 Use an assessment of costs, benefits, risks and opportunities to determine
financial viability of each marketing opportunity
4.4 Determine probable return on investment and potential competitors
4.5 Describe and rank marketing opportunities in terms of viability and likely
contribution to the business
BSBMKG606 Manage international marketing programs
1.1 Select viable international marketing opportunities and develop objectives
consistent with the organisation’s capabilities and resources
1.2 Identify measurable international marketing objectives consistent with
organisation’s strategic direction, and identify nature and extent of goals for
international market
1.3 Formulate strategic objectives and related key performance indicators by
product, service, country or international grouping, and overall
1.4 Develop a risk management strategy to manage contingencies, and ensure
marketing objectives are met in accordance with overall organisational
requirements
2.1 Research international marketing opportunities and determine global or
customised approaches for promotion of products or services
2.2 Evaluate options for choice of marketing approaches
2.3 Select a marketing approach to meet marketing objectives, international
market conditions and consumer preferences
3.1 Evaluate business culture and consumer preferences, and identify compatible
marketing structures
3.2 Identify options for operational marketing structure and rank them for strengths
3.3 Choose operational structure that best fits international market and product or
service
4.1 Communicate international marketing objectives across the organisation to
suit culture, customs, levels of knowledge, experience and needs of personnel
4.2 Identify and agree roles, responsibilities and accountabilities of staff and
contractors involved in all elements of marketing effort
4.3 Develop communication strategy to ensure personnel responsible for each
element of marketing mix work together to meet organisation’s marketing
objectives
4.4 Manage marketing effort to ensure it is directed towards areas of greatest
potential for the organisation
4.5 Manage integration of marketing, promotional and any sales activities in
accordance with international marketing objectives
5.1 Monitor product, pricing and distribution policies in relation to market changes,
objectives of marketing plan and organisational requirements
5.2 Monitor overall marketing progress against performance targets to ensure
activity, quality, cost, and time requirements are met
5.3 Analyse, review and revise marketing outcomes and objectives
5.4 Analyse successes and performance gaps as to cause and effect, and use to
improve international marketing performance
5.5 Analyse changes in market phenomena, and identify and document their
potential impact on international marketing objectives
5.6 Document review of marketing performance against key performance
indicators in accordance with organisational requirements
BSBMKG608 Develop organisational marketing objectives
1.1 Confirm organisation’s mission, vision, purpose and values from current
organisational materials or from owners, directors or senior management
1.2 Analyse strategic organisational documents to identify organisational
directions and targets
1.3 Complete a situational analysis identifying factors impacting the direction and
performance of the business
1.4 Identify legal and ethical requirements for the organisation
1.5 Document and confirm strategic direction of the organisation with owners,
directors or senior management, and identify its impact on marketing activities
2.1 Evaluate effectiveness of previous marketing and positioning strategies to
identify lessons learned
2.2 Analyse current key products or services and major markets for strengths,
weaknesses, opportunities and threats
2.3 Evaluate previous marketing opportunities captured by the organisation, and
examine and document their profitability
2.4 Evaluate marketing performance against previous objectives, targets to
identify critical success factors, and areas for improvement
3.1 Identify and analyse marketing opportunities for viability and likely contribution
to the business
3.2 Use an assessment of external factors, costs, benefits, risks and opportunities
to determine scope of each marketing opportunity
3.3 Analyse opportunities for likely fit with organisational goals and capabilities
3.4 Evaluate each opportunity to determine its likely impact on current business
and customer base
4.1 Develop objectives in consultation with key internal stakeholders that are
attainable and measurable, and that identify nature and extent of what is to be
achieved
4.2 Ensure objectives are consistent with forecast needs of the business and
market
4.3 Ensure objectives are compatible with the organisation’s projected capabilities,
resources and financial position
4.4 Ensure objectives are compatible with the organisation’s direction and
purpose, and meet legal and ethical requirements
BSBMKG611 Manage measurement of marketing effectiveness
1.1 Review current marketing strategies and marketing plans, and research range
of metrics available to measure effectiveness of relevant marketing processes and
functions
1.2 Analyse effectiveness of current marketing metrics used by the organisation in
each key marketing operation
1.3 Critically analyse how existing marketing metrics link to strategy, and
opportunities to improve links
1.4 Plan to address any issues with use of marketing metrics within the
organisation
1.5 Design criteria for retaining existing marketing metrics, and for selecting new
manageable and cost-effective metrics
1.6 Gain approval for design or redesign of strategy from senior management
2.1 Set objectives for measurement and evaluation of marketing effectiveness
2.2 Select methods to measure marketing performance for each marketing
process or function, tailored to the organisation s brand or unique positioning
2.3 Calculate costs of gathering and analysing data with assistance of relevant
financial experts
2.4 Design and record implementation strategy for measuring and analysing
marketing performance, or make recommendations for improving current strategy
3.1 Design and implement appropriate communication and training strategy, so
marketing and other relevant personnel fully understand their role in measuring
marketing effectiveness
3.2 Supervise design and implementation of specific metrics
3.3 Plan and monitor work activity to ensure adherence to strategy for
measurement of marketing effectiveness
3.4 Design process to review and evaluate marketing metrics on a regular basis,
and if organisational strategy changes
Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under “Purpose of the assessment”
section are recorded as competent. Your trainer will give you feedback after the completion of each
assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.
ORGANISATION DETAILS
Note: The organisational details used in this assessment have been sourced (and to some extent
paraphrased) from the organisation’s website and other relevant documents of the organisation. The
information used here is solely for educational purpose.
Brief History:
The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This
name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in
Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high
quality coffee and brewing products the company grew to be the largest roaster in Washington with
multiple locations until the early 80’s. In 1981, current CEO Howard Schultz, recognized a great
opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new
products, Schultz realized an opportunity to bring the café community environment he found in Italy to
the United states and the Starbuck’s brand we know today began to take form. Selling espresso by
the cup was the first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which
found outrageous success and in 1987 when Starbucks decided to sell the original 6 locations,
Schultz raised the money with investors and purchased the company and fused them with his Italian
bistro locations. The company experienced rapid growth going public in 1992, and growing tenfold by
1997, with locations around the United States, Japan and Singapore.
Starbucks also began expanding its brand. According to George Garza in his article the history of
Starbucks the following product lines were added:
• Offering Starbucks coffee on United Airlines flights.
• Selling premium teas through Starbucks’ own Tazo Tea Company.
• Using the Internet to offer people the option to purchase Starbucks coffee online.
• Distributing whole bean and ground coffee to supermarkets.
• Producing premium coffee ice cream with Dreyer’s.
• Selling CDs in Starbucks retail stores. Starbucks uses minimal advertising and has grown on word of
mouth and brand recognition.
Their mission statement from the company profile is as follows:
“Our mission is to inspire and nurture the human spirit – one person, one cup, and one
neighbourhood at a time.”
Their core competencies can be defined as high quality coffee and products at accessible locations
and affordable prices, provided a community to share in the coffee drinking experience, and variety of
choices. The also value ethics and good business practices and are a leader being voted one of
2010’s most ethical businesses by Ethisphere magazine for the 4th year running. (“Starbucks”)
Starbucks is facing its own struggles however as it saw sales start slipping before other companies
did in the recent recession. According to Melissa Allison in her article Starbucks has a new growth
strategy — more revenue with lower costs, Starbucks has closed 900 stores and eliminated 34,000
jobs. Starbucks new strategy is to refocus on some of the areas that decrease risk and up front
investment. This includes expanding foreign stores, with aid of partnerships that share risk and costs,
selling VIA instant coffee and other products in retail and convenience stores, and reinvigorating the
Seattle’s Best Brand coffee.
A statement from CFO Troy Alstead this March paints this picture:
“We clearly hit a wall and didn’t do very well in the 2007/2008-time frame. From here forward, when
we grow Via, Seattle’s Best Coffee and consumer products, there’s less investment for each dollar of
revenue.”
This new strategy has inspired some optimistic feedback. Morningstar investment research firm has
increased estimate of Starbucks shares from $4 a share to $24 after the statement of revamping the
brand. Product innovations and international expansion not only make the business potentially more
profitable but defend them against competition. International partnerships increase challenges but
also create new ideas in new markets that can then be translated back to markets.
Starbucks is in a mature stage of its life cycle. It was founded over 20 years ago and it has
experienced rapid growth in the last 2 decades. However, within the last few years its growth has
slowed and has even had to close locations. They are now focusing efforts on previous endeavours
and international expansion.
Bean and
Product Product Take-home
ingredient Storefront
Development Distribution products
selection
The above is the value chain for Starbucks. The upstream portion of the value chain shows the
product development from adding teas and international influences, to the research that took place to
develop the VIA instant coffee line. They also search the globe for Fair Trade suppliers of high-quality
beans. These products are then distributed to corporate storefronts, franchise locations, airport
terminals, grocery stores and more, and finally offer ground coffee and gift cards to take home.
10. Reference
11. Appendix
TOTAL 60
Starbucks is an American coffee company and coffeehouse founded in Seattle in 1971. In 2018, the
company was operating in 28,218 locations worldwide. The company’s mission is “To inspire and
nurture the human spirit, one person, one cup, and one neighbourhood ar a time”, what requires not
just serving excellent coffee, but also engaging customers at an emotional response.
Starbucks is part of the Retail Coffee and Snacks Industry. This industry experienced a big slowdown
in 2009 resulting from the economic crisis what changed consumer tastes, spending less on luxuries
like eating out, choosing to purchase low-price items instead of high-priced coffee and drinks. Before
that, the industry had a decade of growth consistent. Now, the industry is expected to grow annually
at a rate of 3.9% for the next five years, with a potential to reach $35.1 billion revenues in the US.
This growth would be mainly driven by an improving economy, increase in consumer confidence and
expanding menu offerings within the industry. Starbucks dominates the industry with a market share
of 36.7%.
In 2017, Starbucks results for fiscal continued to demonstrate the strength of its global business
model, and its ability to successfully make disciplined investments in its business and partners.
Consolidated total net revenues increased 5% to $22.4 billion, primarily driven by incremental
revenues from 2,320 net new store openings over the past 12 months and a 3% growth in global
comparable store sales. View Appendix 1.
The industry’s demand for premium coffee and food/snack products can be affected by a number of
factors, which include the amount of coffee being consumed, the population income and economic
stability, healthy habits, coffee pricing. It’s a very sensitive industry, and all these factors can
substantially affect its growth.
The amount of coffee consumption it a very important factor: with more people consuming coffee
around the world, the revenue of coffee & snack shops is increased. A main cause for that would be
the increase of income, as the economy improves the consumers starts to relax their budget. This
factor has a very positive effect on the market revenue. On the last few years, the amount of people
buying, looking for and consuming coffee has increased exponentially. Since 2012/13, the
consumption of coffee has grown 1,3% a year, view Appendix 2. In result, the amount and variety of
coffee shops has grown as well.
Now, the primary input in the value of chain of the industry are the coffee beans, the variable prices of
coffee beans determines market costs and profitability margins. The world price of coffee had
increased highly a few years ago due to growing demand in other countries and the resulting supply
shortages. Now, how it became more affordable, the market is showing more profitability and lower
costs. View Appendix 3.
Concerning about heath also play an important role in determining the demand in the industry. Lately,
the customers are more worried about what they eat and how they eat; view the growth of vegetarians
and vegans worldwide. This can be a threat to the industry as they become more aware of issues
related to obesity and weight. Because of that, has been a proactive response from the industry
regarding organic and healthy products, as organic lattes and drinks, and organic snacks, as protein
balls, for example.
Competitive rivalry is a strong force faced by Starbucks in the food service and coffee industries. The
specialty coffee market is intensely competitive with respect to product quality, innovation, service,
convenience and price. Starbucks has many competitors of different sizes internationally. Even
having the largest market shares, the company still feels the pressure seeing that its closest
competitors also has a significant market share. The variety of firms is not as large as its number,
what make this force even more threating to Starbucks. The company has to fight a large variety of
companies, within pretty much the same variety of products and services. In addition, Starbucks also
has to fight the fact that, for the customers, most of the times, it has a low switching cost change from
Starbucks to another company. Based on that, competition is one of the top priorities o be faced by
Starbucks.
This force really affects Starbucks. Again, the low switching costs cause the customers to easily
change from Starbucks to another brands. In addition, the high substitute availability means that the
customers can stay away from the company as much as they want, since they can find many
replacements products. These factors are so strong, that it is hard to pay attention to the fact that
individual purchases are small compared to the company’s total revenues. Even with this weakness,
the bargaining power still remains an priority strategic issue.
Despite the individuals suppliers having a moderate size, what can be considerate a moderate
strength, the high variety of suppliers weakens theirs bargaining power. Using as example, the coffee
beans. There are many suppliers of coffee beans around the world, and all of them aim to supply their
beans to the companies as Starbucks. With that, Starbucks can choose which company fits bests
their necessity. In addition, their bargaining power is weakened not only by the variety of suppliers but
also for the large overall supply. As a result, supplier’s bargaining power is a minor issue for
Starbucks.
This component indicates that it is a strong possibility for Starbucks to be negatively impacted by this
force. The high availability of substitutes makes it easy for the customers to just choose another brand
or product instead of Starbucks. And, as said before, the low switching costs it is also further
strengthen the threat. Many of the substitutes are cheaper than the company’s products. So, this
component is a high strategic concern to the company.
The cost of doing business is variable. It depends of many factors as the size of the shop, the range
of products. The operating cost of a small coffee shop is lower compared to a Starbucks. However,
small shops have lower supply needs, equals to lower supply costs. This is what enables small
business to compete directly with Starbucks. However, brand development has a high cost. This is
the condition that reduces the threat of this force. A small business does not have enough resources
to develop their brand as Starbucks has. The company is internationally known, all this “fame” took
years of hard work and investments, something that s small business cannot make. So, this force
shows to be a significant threat, but not an urgent matter.
Conduct an internal and an external diagnosis of the company. Use the SWOT and PESTLE
tool to synthesize this information (5 marks)
Discuss your key marketing strategies and core competence (10 marks):
Analyse the key issues the organisation is facing and suggest alternative action (10 marks):
Discuss a new value chain for organisation which might be required for the changing
coffee market (5 marks)
Identify Australian and International policies and legal factors affecting marketing
operations (5 marks):
1.
APPENDIX
Include any attachments, facts, figures, pictures, diagrams, brochures, web screenshots, etc that you
have discussed in your plan and may relate to explain the e-marketing plan more clearly.
Appendix 1
Appendix 2
Appendix 3
Coffee Prices
Note: Arabica Coffee prices, in USD cents per pound (lb). Daily prices.