Applying The Marketing Mix And Segmentation To Starbucks

Discussion Topics

You reviewed the 4 P’s of the marketing mix as well as segmentation of the market in the video in the Learning Activity, now you have an opportunity to apply this to a product of your choice and further your understanding how these concepts are applied in the real world.

Choose a product or service from a global company and apply the 4 P's of marketing: You can search for global companies on the Internet. Address the following 4 Ps of marketing:

1. Product
2. Price
3. Place
4. Promotion

Then after watching the “Market Segmentation” video from the Learning Activity:

• Describe the segmentation for the company’s product (i.e. the good or service) as determined by reviewing the company’s website.
• Could they expand their segmentation? Why or why not?

Discussion Topic

Updated

Discussion 2: Marketing at Tim’s

At Tim’s Coffee Shoppe, Tim is considering selling breakfast quiches (eggs and cheese baked in individualized pie shells) from a local baker and fruit smoothies at his store. In Chapter 11 page 338 through 342 read “Developing a Marketing Strategy and Developing a Marketing Mix.”

• Will these products fit with his existing market segment? Explain why it is or is not a good fit using marketing mix terminology (citing references if needed).
• Then go into Tim's Coffee Shop and look at the menu board and see if you have any recommendations for better signage.

Discussion Topic

It is all very well to have a marketing plan. But implementing the marketing plan takes leadership, especially when you do not have a lot of funds with which to motivate employees through salary or wages.

Scenario: You have a small start-up management consulting business in your own local market. Your feasibility analysis indicates that you have several struggling small businesses that are opportunities in your community. At present there are no other consulting businesses with which you would compete. You want to target this market segment to build your consulting business.

• After watching the video in the Learning Activity explain, discuss what kind of marketing strategy would you use for your consulting business and why? What market segmentation would you use? What would your implementation plan be?
• You want to inspire your consulting team to implement your marketing strategy. What leadership style and kind of power would you use to influence them? Explain.

Discussion Topic

Social Media and Confidentiality at Tim’s

Tim’s Coffee Shoppe simulation

A customer leaves a waitress $100 tip and signs her name with a short “thanks for the great service!” The server is so excited that she takes a picture of it and posts it on the Facebook page providing the customer’s first and last name. Tim happens to be updating the Coffee Shoppe Facebook page and notices in the feed the picture of the note with the signature. Search online or go to the Society for Human Resource Management and search “ Social Media Policy.”

Address the following items regarding this scenario:

Checklist

• What should Tim do? In your answer include a written policy to address this issue going forward.
• What are the responsibilities of an employer (or HR Dept.) regarding posting work related information on social media?
• What policies do you have at your current or past employer regarding posting to social media?
• Is the policy an appropriate one in your opinion and why or why not?

Discussion Topic

There are two separate Discussions this week. Both of these Discussions cover the “C” in the POLC model. Although control can be realized through policy, procedures, codes of conduct and ethics, the control of finances is essential to sustainability of a business. Make sure to review the Learning Activities before responding these two Discussions.

Marketing at Tim’s

Checklist items: Discuss the following:

If your best friend came to you and said that their business was doing poorly and you looked over their business and saw the information (in the scenario below), what would you advise him or her and explain why.

Scenario: Your best friend works for an In-Home Health Provider Company (IHHPC) in Palm Beach County, Florida. Your friend comes to you and explains that the In-Home Health Provider Co. wants to expand the next year to Broward County and Dade County. Your friend explains the company is dealing with a cash flow problem and if it is not figured out over the next six months the IHHPC will not meet the asset requirement for the expansion loan. IHHPC Revenue:

• 80% private pay patients.
• 10% Health insurance.
• 10% Long Term Care Insurance Policy.

Process at IHHPC: Your friend explains this is how the IHHPC works. A patient would call in and request a nurse for eight hours, seven days a week, starting the next day. The company would send the nurse the next day, then bill the patient on a weekly cycle. The IHHPC would mail a statement to the patient at the end of the first week of service. By the time the patient would get around to writing a check, and mailing it back in to the IHHPC, sometimes the company would not receive payment for six to eight weeks. The company would be paying the nurse weekly although not receiving payment for services yet.

What would you advise him or her and explain why?

Make sure to take the Break-even point tutorial provided in the Learning Activities before responding to this Discussion.

Go to the U.S. Small Business Administration website and search for “break-even point” at http://www.sba.gov/

Then answer the questions posed:

1. Why is it important for a business to know their break-even point? Cite an example and support your answer with your rationale.
2. How long should a business be prepared to survive financially if they do not make a profit? (Support your answer with references.)
3. What resources could Tim, the shop’s owner in the simulation, use if he needs to gain access to more funds to operate his business in the near future?

Discussion Topic

Updated

Read the article regarding “How to Enter a Foreign Market” and then answer the following questions based on the Exavier Candy Company scenario.

• If Exavier Candy Company were to go global what would they need to find out concerning marketing of their products? Be specific.
• What would be their best first international market (country or region)possibility and why?
• What management/financial considerations would need to be considered?

Discussion Topic

The public is increasingly scrutinizing the ethical and social responsibility congruency between a company’s public statements, company documents, website, and actions. After watching the video on this subject, and reading the four levels of social responsibility, you will apply ethics and social responsibility concepts to Tim’s Coffee Shoppe based on a scenario.

The Economy, Social Responsibility, and Sustainability

First watch the McGraw-Hill video in the Learning Activity regarding ethics and social responsibility.

Checklist:

• According to the video, what is the triple bottom line? Could this apply to Tim’s?
  • What social responsibilities does Tim's Coffee Shoppe have to the community in which it is located?
  • How can Tim’s encourage ethical and sustainable environmental practices at the Coffee Shoppe both by customers, suppliers, and employees?
  • How can Tim’s reach level 4 of the social responsibility stages as appears in your Reading?

Discussion Topic

Topic: Federal, State, and Local Laws

Federal, State and local laws must be adhered to when developing or managing a business.

In this Discussion you will review Federal and State laws as well as examine your local laws in relation to the simulation of Tim's Coffee Shoppe (Link: https://kapextmediassl-a.akamaihd.net/business/AB298/AB298_1604C/simulation/index.html

 and Exavier Candy Company( Link: https://kapextmediassl-a.akamaihd.net/business/AB299/ab299_1604c/exavier.pdf

To begin, go to the U.S. Small Business Administration website and select “Starting and Managing” and then select under “Managing a Business — Business Laws and Regulations” where federal laws and regulations can be accessed for reference purposes. Make sure you research your state and local laws that apply (Search: State of your state here on the Internet).

• Identify one Federal, State and local law each for Tim’s Coffee Shoppe and Exavier Candy Company (a total of six laws) that would apply to those businesses (laws you have not previously described) if they were located in your area. State why each law applies based on the difference in the size and type of each business.
• Describe the impact of these laws on each of these companies.

Discussion Topics

After reviewing the marketing mix and segmentation of Tim’s coffee shop, Starbucks is selected as a global company to apply the 4P’s of marketing mix.

Starbucks, a leading coffee brand on an international level, offers the customers with an amazing and unmatchable experience of food and beverages. Although being a coffee specialist, they are trying to attract different set of customers with their experiment in the food items. They categorize their products in the form of roast, format, caffeine and flavor.

Starbucks is a popular brand for selling premium quality of coffee. Therefore, the prices for the products are justified by considering the high-end technologies and the wide varieties of coffee aimed at providing the best customer experience. Initially Starbucks entered the market with low price to reach out to those customers who cannot afford high priced coffee. They have not only maintained competitive pricing in marketing mix but also relative pricing strategies to maintain loyal customer base and a superior brand identity (Huang & Sarigöllü, 2014).

This high- quality coffee brand is located in 70 countries including North America, Oceania, Africa, Europe, Asia and South America. Most of its outlets among the 5000 licensed ones are situated in USA. It also has a developed website to inform the customer about the product categories and the price range along with other details. The entire menu is available on the website as well as the locations, specialty stores, customer benefits, etc.

The company focuses on their brand promotion through different channels such as online, television, print media and others. Their community programs such as Swastha and Chai project is an ethical activity for the benefits of the farmers and use of eco- friendly techniques. Their promotional activity has used the ‘tweet- a- coffee’ campaign, ‘my Starbucks idea’ feedback system, loyalty programs and gift cards to attract more customers (Datta, Ailawadi & van Heerde, 2017).

Starbucks has used market segmentation to identify the target customer from the public. They have made geographic segmentation in terms of region such as US, Europe, etc. and targeted the urban density. The demographic segmentation in terms of age and gender is targeted towards male and female of age group 22- 60. Behavioral segmentation included loyalty and the benefits such as a place to work, chat and relax. Psychographic segmentation is done based on social strata and lifestyle (Ryan, 2016).

After going through chapter 11’s pages 338 to 342, it can be observed that innovation in the breakfast menu by adding quiches and fruit smoothies will help them to attract more customers in the store. It will be a good fit for the marketing mix and they should widen the target market too. They should include more items in the lunch and dinner menu as well keeping in consideration their opening and closing time. They should include more varieties in the product sizes, which will cater to the needs of the customers and improve their service quality in order to retain loyal customers (Ottman, 2017).

Marketing at Tim’s

After watching the video in the learning activity, it can be mentioned that digital marketing in the form of internet advertising would be better out of all the marketing strategies to focus on the consulting business in the local market (Pappas, 2016). As the management consulting is a start- up business, therefore it can be stated that they will not have large funds or prior reputation to reach the target market. Therefore, they will display their services on the internet in various social media platforms and in the company website. The market segmentation will be done based on demography such as age group, income level, and occupation and psychography such as attitude, personality and lifestyle. While implementing the plan and strategies, the products and services of the small businesses will be considered to find out the ways in which they can benefit the company. The internet marketing will focus on the unique innovations created by the struggling companies with the help of the management consultancy (Solomon et al., 2014). This will spread good reputation about the consultancy as well as the small businesses. This will help in the growth of the start- up management consultancy with the use of digital marketing. As there are no rival companies in the community, therefore they have the advantage of getting benefits from the target market. Improvement in their services will help them to get hold of the potential customers too.

Leadership is important to convince the marketing team of the management consultancy firm for implementing the marketing strategy within the firm. In order to do so, transformational leadership will be best suited for letting the teams do what is actually needed by the organization (Avolio et al., 2016). This type of leadership style is aimed at initiating change in the organization; therefore, it will be appropriate in implementing the new marketing strategies in the organization. It is the responsibility of the transformational leaders to motivate the team to work hard than it is actually required for better outcomes. More challenging expectations are set for the team so that they perform better in attaining the organizational objectives. It will help the leader to have a dedicated team of followers who are satisfied with the management of the leader. Moreover, it is a good way to empower and motivate the team to implement the new marketing strategies. Along with transformational leadership, expert power can be imposed on the management team to which possesses high quality (Ojo, Ree & Carretta, 2016). It is a significant factor to influence the team for working as per the guidance of the leader. The leader, in this case, will use his power of knowledge to motivate the employees and the skills of the leader are enhanced with time. This is a credible way of earning respect by the team, which is important for the leader. By using transformational leadership and expert power in the management consultancy firm, the teams will be motivated to work in an efficient manner, which will help in the growth and development of the start- up company.

Social Media and Confidentiality at Tim’s

1. As per the given case, Tim should conduct a one- to- one interaction with the server to enquire if she is not aware of the social media policy of the company. This is because the company has a written policy of not to disclose any information about the customer without their consent (Dreher, 2014). She has violated the policy by mentioning the first and last name of the customer, which is a breach of confidentiality.

2. It is the responsibility of the HR department to make specific rules for the employees regarding the use of social media. The HR should make sure that the personal data of the customers are not shared in the social media without their consent (O’Connor, Abbott & Schimdt, 2016). However, if any employee does so then there should be specific penalty depending on the severity of the issue. The social media policy of the organization should be clearly outlined to the employees on the first day of their job. The policies should be amended in such a manner that the social media posts by the employees will not expose the organization to legal issues or public embarrassment. Moreover, the HR should ensure that the information shared by the employees in public must not influence the stock price or disclose account passwords (El Ouirdi et al., 2015).

3. At the current organization, there is a strict social media policy set for the employees by the HR department. The employees are not allowed to use social media while working in the organization and they have implemented the same by blocking the sites on the official computers and laptops. Moreover, there is a strict vigilance on the employees about using social networking sites on their personal devices. They are not allowed to use any information regarding their work or details of the clients. No company data is allowed to leak through social media accounts of the employees. The employees are not allowed to click any pictures within the organization and post it on the social media pages (Felix, Rauschnabel & Hinsch, 2017). Apart from that, there is a specific person allowed to respond to the customer queries on social media, while others do not have that provision.

4. I do not think that the policies laid out for the employees in my organization are very correct. There is more strictness than required in the social media policy of the organization. the company should only pay attention to the fact that the company reputation is not hampered in any way through social media. I do not think that they have the right to stop the employees from clicking pictures or using the social networking sites on their personal devices, unless it is hampering the company reputation in any way. Using social media is a personal choice of every individual and the company should not curtail them their individual rights.              

Managing a Business with Laws

For the public companies, the most important financial statements can be the income statement, balance sheet and the profit and loss statement. The income statement clearly shows that the sources of income for a particular period of time can be compared with the past profits. The In-Home Health Provider Company can undertake certain financial considerations in order to meet the asset requirements for expansion loan. The company can diversify their product lines but stick to their knitting. Moreover, it can sell their equity in order to generate revenue for the expansion purpose. In addition to this, the company should not think of losing control as the things are going bad (Revelli & Viviani, 2015).

Furthermore, the company needs to act in a decisive manner. Moreover, it is evident from the fact that the company is not receiving any payment for six to eight weeks. In addition to this, it would be paying the nurse weekly even though the company is not receiving payments for their services yet. A professional manager can help in resolving these issues and therefore, the company needs to hire a professional manager. Most importantly, In-Home Health Provider Company needs to fix their costs and expenses in terms of health care services. It is planning to expand its business and thus, a proper market research is necessary before final planning (Pletzer et al., 2015).

The company needs to make some coherent strategies for gaining competitive advantage in the international markets. Moreover, hiring talented employees would benefit Health Provider Company to a large extent. In addition to this, the company needs to tackle their opportunities as well as problems at the same time. More guidance from the professional manager can help the company in gaining more comfort and authority over the business. In financial terms, it can also look for methods in generating quick profits, satisfactory cash flow and seek capital gains by selling or building a part of the company (Grant, 2016).

0. It is highly important for a business to know their break-even point as it helps in gaining an understanding regarding their financial statements. Moreover, accounting can be a challenging job for the businesses. For instance; ABC Organization believes that financial information is fundamental to understand the profitability of the business. They feel that knowing the numbers is highly essential for learning regarding the company and also planning for the upcoming years. ABC Company conducts a break-even analysis in order to determine their volume of sales, which in turn helps in covering the necessary costs. In addition to this, break-even analysis also assists the company in setting up their sales goals (Narasimhan, 2016).

Entering a Foreign Market

1. A business needs to prepare itself in an efficient manner, if they do not make a profit. They can undertake several strategies for financial survival such as, maintaining control, managing cash flows, reducing inventory expenses, using credit wisely and more. In addition to this, the preparations should involve education, research, planning as well as regular monitoring. Along with a strong internal system of control, the companies can also focus upon their cash flow, credit management policies and inventory for a comprehensive financial planning (Hair Jr et al., 2015).

2. The shop owner, Tim can gain more accessibility to funds by undertaking certain measures. Firstly, the coffee shop needs to increase their variety in foods and beverages. It can cater to the most number of audiences. Increasing the variety can attract the most number of customers, which in turn can add up to their profitability level. Secondly, customers love surprises and therefore, the coffee shop can introduce several offers and discounts on their products, which in turn will increase the customer heads. Thirdly, the company needs to do something for its employees. It is evident that the employees are not at all happy with the amount of salary they get and therefore, the company needs to increase their salary in order to keep them happy (Nagle & Müller, 2017).

1. If the Exavier Candy Company decides to go global, then it needs to take certain things into account. These things are the scale of entry, exportation costs and the place where it needs to enter, that is the global market. Moreover, the company needs to take other environmental factors like demographics, political factors and others. In addition to this, they may have to do some research work on this. The research work would include analysis of the popular candies in different countries. Most importantly, the company can check which candies are available in different countries and which are not found easily in the foreign markets (Suzuki & Okamuro, 2016).

The company can work on the products, which are not easily available in the foreign markets. It will help Exavier Candy Company in gaining more customer attention. However, they will also have to consider the costs of shipping in order to sell the candies in the overseas markets. If the company wants to expand their business globally, they should scan the environmental issues of particular countries. The environmental issues include political, social, geographic and demographic factors as well. Furthermore, the company can also diversify their product lines in order to enhance their profitability level (Tian, 2016).

Ethics and Social Responsibility at Tim’s Coffee Shoppe

2. Exavier Candy Company can select Scotland for their international marketing strategy. This is because the country is a great place for starting a new business as it welcomes new companies. Moreover, the company has variety of business and expansion opportunities, which will be a great way to expand. The country has a tax system which will be beneficial for the company. Currently, the country has control over seven percent of their taxation. Along with this specific control, the country can reform their tax system so that it becomes easier for the company itself (Zander, McDougall-Covin & Rose, 2015). The company will get enough support from the key growth sectors at Scotland.

Overall, the country’s effective system of taxation will help in increasing the company’s prosperity in Scotland. Moreover, they will get stronger support in the country’s key growth sectors. In addition to this, they will be able to collect a fair revenue amount from the public services fund. By diversifying their products, the company can also build their own industrial base. Furthermore, the government of Scotland will provide great support to these processes than some other country (Shenkar, Luo & Chi, 2014). Therefore, these are the benefits which the company would get if they expand their business at Scotland.

3. The common management and financial considerations, which the company needs to keep into consideration for the expansion, are being discussed in this part of the assignment. Firstly, the company needs to consider the overhead as well as manufacturing costs. The expansion type considered by the company will have affect upon their profit margins. On the basis of different overhead as well as manufacturing costs, the company can add a new service or product at the new location. Secondly, if the company has enough funds to expand, it may require adequate costs, working capital, credit, cash reserves in order to run the business (Fernandes & Pinho, 2016).

Thirdly, depending on the way of expansion, the prices may rise, stay same or decrease. Therefore, taking this advantage of increasing the demand of expansion, the company’s production should create scale economies, which will enable the business to lower their prices. This will help them in gaining a competitive advantage in the market as well. Keeping the prices same will prove to be beneficial for the company, as it will increase their profitability level and pay off expenses. By expansion, the company will gain the following factors; funds, increase in the sales profit and volumes and demand (Penrose, 2017).

The Economy, Social Responsibility, and Sustainability

1. Tim Coffee Company should implement certain strategies in order to become more responsible towards the community, where it is located. The following strategies include the exploitation of the scale economies for the alteration of their costs, incepting new and independent SBU’s for the new product’s developmental purpose. It can help the company in enhancing their efficiency level and minimizing the complexity. Moreover, they can reduce the probable cross functional tasks as far as possible. These specific strategies can be adopted by the company as it needs to manifold their sales. Furthermore, in order to counter the competitive environment and exploit the new markets, the company can garner revenues by following the given strategies (Schwartz, 2017).

Tim Coffee Shop also has huge potential of capitalizing their new products as well as services like investing in the new markets, trade practices and more. Moreover, it should follow the social responsibility as well as provide equal payment to the community. This will enhance the opportunities of employment. The local communities working with the organization can bring both low and high cost employ. This will enrich the community as the company will be able to go green. In addition to this, the company should try to follow the environmental concern.

Moreover, the company should follow a proper SWOT analysis in order to do better with the changing time. This will enable the company to understand the strengths, weaknesses, opportunities and threats of Tim Coffee Shop. Additionally, the company will also gain a detailed analysis of its employees’ competencies as well as in-competencies. Tim’s first priority should ensure equal opportunities of employment. Having local community working will bring in business associates, family and friends. In addition to this, the coffee shop should also be concerned regarding the disposal of waste materials and encourage the communities to go green (Tai & Chuang, 2014).

2. Tim Coffee Shop can encourage sustainable and ethical environmental practices at the store by educating the customers, employees and suppliers. The company can encourage the suppliers to supply recyclable products to the shop. The recycled items can help in serving the food or coffee, which will ensure 100% proper disposal of wastes. Moreover, the customers should be asked of disposing the waste materials in a proper manner. The employees should not flush the wastes down to the toilets or any nearby lake. Taking proper care of the communities will bring in better reputation as well as class to the store, which other coffee shops might not have (Suliman et al., 2016).

Majority of the businesses have recycle bins outside their shops. Therefore, the company should have a number of recyclable cans, trash bags, aluminum and others outside their stores in order to protect the environment for the better good. Discounted taxes and utilities will be a good start and ideas like this can be a model for each and every community to abide by. The company can make these policies and implement those in order to save Mother Earth from all harms that are cause in the last two generations.

The company has some opportunities and it can be utilized in an efficient manner. Moreover, the company can track the market of the non-university students. Tim can encourage its customers by providing materials on eco-friendly products and why it is important to go green. Furthermore, the employees should be educated on why it is immensely important for saving the world. In addition to this, the company can also introduce a wide range of eco-friendly and organic products in their menu. The coffee cups or plates should be recyclable and the food items should be disposed in a proper manner. Furthermore, Tim should invest some more into remodeling the shop for promoting greener earth and eco-friendly products. This will enhance their profitability as well as popularity (Fernandes & Pinho, 2016). These advantages should be highlighted more effectively and proper planning must be done in order to enhance more and more opportunities on the long run.

3. Tim can reach the fourth level of social responsibility by going through some stages of corporate social responsibility. Introducing eco-friendly products and services would help and prove beneficial for the company. Moreover, the company can take part in corporate social responsibility activities and raise awareness. Furthermore, educating the employees regarding these practices would also help. Using recyclable products will prove to be advantageous for the company in this case (Pedersen, 2015). Therefore, these are the practices which would take Tim to the fourth level of social responsibility.

Considering the brief and working criteria of both the Tim’s cafe and Exavier candy shop, it can be stated that there are certain legal provisions included in this case. The coffee shop governed by Tim is a sole proprietorship. According to the Company law, the employees of the sole proprietorship are liable to get minimum wage of $7.25 per hour. Further, if there is any employee aged about 20 years, the waging criteria should be $4.25 for an hour. According to the Minimum wage laws, if the state’s minimum wage is lower compared to the federal law, the employee will get both the federal and state’s wage.

Further, Tim has to follow all the rules of Fair Labour Standards Act to appoint the employees at the coffee shop. According to the rules of the Act, employers could be appointed based on contractual agreement and there should be exempt and non-employee in the shop (Kearns, Kaufmann & McClelland, 2015). It has been stated that the shifting time of the cafe is 6 am to 2 pm. i.e. 20 hours. According to the employment law, there should be two working shift in this regard. According to the Fair Labour Standard Act, the rate of shifting time for the employees is forty hours in a week. Further, the non-exempt employees can get additional payment for the overtime. However, it has not been clarified from the case that the employees of Tim’s Coffee shop get any such overtime payment.

According to the US rules on sole proprietorship, it is the duty of the proprietor to pay the taxes and file personal income tax return. Further, Tim has to apply for the employer identification number and hence it is important for him to apply for the same. Further, licences are required to run business in USA and according to the Federal Law in USA; the employers are required to apply for licences on the grounds of incorporation of the business and environmental protection (Silberman et al., 2018). Considering the case of Tim, it has been observed that certain electrical substances used by him had expired and there are high chances for environmental degradation. It has been observed that the refrigerator used in the cafe is quite back dated and that can increase Carbon Monoxide in the air.

In USA, the small business proprietors are required to apply for the health insurance for professing the business. According to the federal law system, there can be different types of insurance for protecting the business and for the safeguards of the employer and the employees (Resnik, 2016). However, either of the cafes has taken no such steps.

According to the Employment Law of USA, it has been stated that the employees should not have to face any discrimination. The federal law protects the employers, where it has been stated that the employees should not face any harassment due to their caste and creed (Hainmueller & Hiscox, 2015). However, certain extensions have been made in the state or local law in this case. There are several states where the discriminatory subjects are extended to ancestry, marital status and domestic violence. Considering the case, it can be stated that no such matter has been occurred in Tim’s cafe.  

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Intro. (2018). Retrieved from https://kapextmediassl-a.akamaihd.net/business/Media/AB299/Tims_Coffee_Shop/index.html