Starbucks diversification strategy and corporate marketing applications

Q1. Answer: Over the years, Starbucks has taken several steps to diversify its breakfast, lunch and snack options to include healthier menu choices and to improve the healthiness of their beverages through individual customization, the elimination of all artificial flavors (by the end of this year) and reducing the amount of sugar added to its beverages by 25% by the end of 2020 (Starbucks health and wellness timeline, 2018). Q2. Answer: Ecomagination is a type of corporate strategy (Ecomagination, 2018). Q3. Answer: The value of corporate synergy is well documented (Ito & Soussi, 2012 )and GE’s use of its knowledge and manufacturing from different departments to develop green products is a definite opportunity. Q4. Answer: Matt used environmental scanning to gather, evaluate and analyze relevant information, including his own empirical observations and experiences, concerning existing healthy convenient food choices and environmental analysis to determine the extent of the risk of a new alternative offering. Q5. Answer: The social and cultural forces environmental force was the most relevant to the business concept of Matt’s Protein Bar. Q6. Answer: Dimensions of social responsibility applicable to each example: o Credit Suisse paid $2.6 million in fines and pleaded guilty to helping American customers evade their taxes: Legal dimension o Quizno’s filed for bankruptcy and was forced to shut its doors: Economic dimension. o Shelly wants to hire her cousin’s consulting company to help her organization, but she wonders if this might violate the company’s conflict of interest policy: Ethical dimension o Yoplait periodically holds Save Lids to Save Lives campaigns to encourage donations to the Susan G. Komen Foundation dedicated toward breast cancer research: Philanthropic dimension (Nicolae & Sabina, 2010). o John uses the company copier machine to print out personal items: Ethical dimension. Q7. Answer: Classification of the following examples as either exploratory or conclusive marketing research: o It has been discovered that many people who visit K-Mart for the first time do not return to the store for at least three months. K-Mart is developing an experiment to give a $5 voucher for the next visit. K-Mart distributes this voucher to some of its customers. It will compare their number of repeat visits to those who do not receive a voucher: Conclusive research o Ford holds a focus group session to discuss initial reactions to a new model of hybrid vehicle it hopes to introduce. The information will be useful in making modifications to the vehicle. Exploratory research Q8. Answer: o Baking soda: Differentiation o Mont Blanc pens: Concentrated o iPhones: Undifferentiated o Lululemon yoga gear: Concentrated o Tesla automobiles: Concentrated o Black pepper: Undifferentiated (Newton, 2018) Q9. Answer: High involvement Q10. Answer: Recipient’s favorite color(s), style, brand and preferences for size. Q11. Answer: Since a $10 bag functions essentially as well as a $600 bag, the motivation behind this type of luxury purchase would be based on esteem needs. Bombardier specializes in planes and trains. This Canadian company’s primary markets are governments and businesses that purchase railroad and airplane related products. Bombardier also markets corporate jets under the names of Learjet, Challenger, and Global. Bombardier markets their products’ fuel efficiency, low operating costs, and other benefits. Q12. Answer: Bombardier focuses on both the private sector business aircraft market as well as the public sector market for transportation needs. Q13. Answer: Although price is virtually always a marketing consideration, Bombardier’s customers are also concerned with the quality of the company’s products as well as its service and supplier relationships (Bombardier business aircraft, 2018). Q14. Answer: o In China, parents use cloth diapers on their babies and toilet train them early. P&G therefore marketed studies to show that babies wearing Pampers fall asleep faster. Look at the examples below and describe which barrier(s) P&G faced with expansion into these two countries: o Chinese and Indian consumers cannot afford P&G’s products. P&G found a way to lower the prices of their products by offering single-serve, no-frills packaging: Price and packaging barriers. P&G faces a stiff rivalry with Hindustan Unilever in India, which is the market leader in consumer goods o Since most Indian men go to the barber to get a shave, P&G promoted the convenience of its Gillette razors and emphasized that women prefer clean shaves: Traditional barriers. Q15. Answer: Comparison of the marketing strategies of Walmart to Amazon.com and how they differ in terms of: o Product: Amazon offers its own products as well as those from an array of third-party sellers and receives a percentage of these sales; by contrast, Walmart markets all of its products through its brick-and-mortar retail outlets even when they are ordered online. o Distribution: Amazon delivers products directly to consumers’ requested addresses while Walmart delivers them to the nearest physical store. o Promotion: Walmart’s promotional mix is comprised of “advertisements, sales promotions, personal selling, and public relations” (Ferguson, 2017b, para. 3). Similarly, Amazon’s promotional mix also focuses on advertising and sales promotions but also includes public relations and direct marketing strategies (Ferguson, 2017a, para. 4). o Pricing: Walmart uses an “everyday low price” pricing strategy (Ferguson, 2017b) compared to Amazon’s market oriented pricing strategy (Ferguson, 2017a). Q16. Answer: o Wedding dress: Specialty o Towing services: Convenience o Canon camera: Specialty o Coffins: Unsought o Toothpaste: Shopping o BMW: Specialty o Bananas: Shopping o Microwave: Convenience o TAG Heuer watch: Specialty o Pets: Specialty Q17. Answer: o A few years ago, Apple released a new model of the iPhone equipped with the intelligent personal assistant Siri: Functional modification o Gap introduces a popular summer T-shirt in a new color: Style modification o Kraft begins changing the packaging of its snack foods to make them easier for elderly customers to open: Functional modification o Prada decided to change the design of one of its more expensive handbags: Style modification o Smartphones are being made waterproof in case of accidents: Quality modification o A coffee shop decides to offer its coffees made with organic milk: Functional modification (Product modifications, 2018). Read through the following products. Q18. Answer: . o Piper Aircraft jets: Exclusive distribution o Dulce and Gabbana products: Selective distribution o Cigarettes: Intensive distribution o Rolls-Royce: Exclusive distribution o Red Bull: Intensive distribution o Chanel perfume: Selective distribution o Gillette razor blades: Intensive distribution o Apple iPads: Selective distribution o Patek Philippe watch: Selective distribution Q19. Answer: o IKEA: Specialty o Costco: Full-line discount o Walmart Supercenter: Full-line discount o Circle K: Convenience o Target: Full-line discount o Carrefour: o Winn-Dixie: Grocery o Nordstrom: Grocery Q20. Answer: o Samsung indirectly pokes fun at Apple in some of its advertisements to indicate the superiority of the Galaxy phone: Competitive o Stonyfield created an advertisement to promote its efforts to help fund innovative organic farming projects: Institutional o Clorox released television advertisements to inform consumers that its brands are still the best in cleaning: Competitive o To introduce Google Glass, Google had to explain what the product does and how it is revolutionary: Pioneering o The National Highway Traffic Safety Administration develops jolting ads to reinforce the danger of texting and driving: Institutional o Apple released the details of its iPad to generate excitement even before the product hit the market: Pioneering (Types of advertising, 2018). Q21. Answer: o During a sales presentation, Virginia found that the client was concerned about the cost. She reassured her about the quality of the product and that it would last for a long time: Handling objections o Fred has a list of potential clients. Now he needs to research the needs of each one as well as their feelings toward his company brands: Prospecting o The Millennial Company sends sales people to technology conferences where they run a booth. There they are able to talk with interested consumers and get their contact information for later use: Pre-approach o Phil shows off his unique PowerPoint presentation to show his client the value of his company’s brands: Approach o Geoffrey asks the consumer to purchase the product: Closing the sale o Vanessa calls her client a week later to ensure that the product was delivered on time: Follow-up (The 8-step personal selling process, 2018). Q22. Answer: o Procter & Gamble releases a new advertising campaign for its razor, which results in more people becoming aware of the razor and purchasing it: Quantity o Sales at Dairy Queen shoot up in the summer, particularly on hot days: Demand o As summer approaches, Macy’s lowers the prices on all of its sweaters: Quantity o A food manufacturer has developed an egg substitute that tastes more like real eggs, convincing more people to adopt its product.: Demand Q23. Answer o Joe’s Sandwich company determines the cost of making each sandwich and then adds a certain dollar amount to set the final price: Cost-plus pricing o To undercut its rivals, a new furniture company prices its products below competing brands: Competition-based pricing o Airlines often price their tickets higher on the weekend because more people are purchasing tickets: Demand-based pricing o Costco and Sam’s Club add 14 percent of the cost to the cost of the product to set the price: Markup pricing