Marketing Management

Level 5

Final Assignment

Scenario

Starbucks opened in Seattle in 1971, when coffee consumption in the United States had been declining for a
decade and rival brands used cheaper beans to compete on price. The company’s founders decided to try a
new concept: selling only the finest imported coffee beans and coffee-brewing equipment. (The original store
didn’t sell coffee by the cup, only beans.)
Starbucks’ expansion throughout the United States was carefully planned. All stores were company-owned
and operated, ensuring complete control over the product and an unparalleled image of quality. Starbucks
used a “hub” strategy; coffeehouses entered a new market in a clustered group. Although this deliberate
saturation often cannibalized 30 percent of one store’s sales, any drop in revenue was offset by efficiencies in
marketing and distribution costs and the enhanced image of convenience.
A typical customer stopped by Starbucks 18 times a month. No U.S. retailer had a higher frequency rate of
customer visits. Starbucks’ success is often attributed to its high-quality products and services and its
relentless commitment to providing consumers the richest possible sensory experience.
A critical component is its commitment to social responsibility.
Community: Starbucks gives back to its community in many ways starting with employees, called
partners. Schultz believed that to exceed customers’ expectations, the company must first exceed those of
employees.
Since 1990, it has provided comprehensive health care to all employees, including part-timers. (Health
insurance now costs the company more each year than coffee.)
Ethical Sourcing: Starbucks collaborates with Conservation International (CI), a nongovernmental
organization, and follows Coffee and Farmer Equity (C.A.F.E.) Practices, a comprehensive coffee-buying
program, to purchase high-quality coffee from farmers who meet social, economic, and environmental
standards. Of 396 million pounds of coffee Starbucks purchased in 2013, 95 percent was ethically sourced.
The company also works continuously with farmers to improve responsible methods of farming, such as by
planting trees along rivers and using shade-growing techniques to help preserve forests. Over the years,
Starbucks has invested more than $70 million in collaborative farmer programs and activities.
Environment: Starbucks is considered a leader in green initiatives, building new LEED-certified green
buildings, reducing waste, and improving water conservation. The world’s first recycled beverage cup made
of 10 percent postconsumer fiber, 10 years in the making, and a new hot-cup paper sleeve that requires fewer
materials to make conserve approximately 100,000 trees a year.
Activity 1
Now the team is working to ensure that customers recycle. Jim Hanna, Starbucks’s director of environmental
impact, explained, “[Starbucks] defines a recyclable cup not by what the cup is made out of but by our
customers actually having access to recycling services.” Starbucks’s goal: to make 100 percent of its cups
recycled or reused by 2015.
Howard Schultz stepped down as CEO in 2000 but returned as CEO, president, and chairman in 2008 to help
restore growth and excitement to the powerhouse chain. Today, more than 3 billion customers visit Starbucks’
20,000 stores in 65 countries annually. The company has more than 200,000 employees and brought in $14.9
billion in revenue in 2013. To achieve its international growth goals, Schultz believes Starbucks must retain a
passion for coffee and a sense of humanity and continue to prove that the company “stands for something
more than just profitability.”
- Starbucks makes business decisions that are both ethical and responsible. Has it done a good job
communicating its efforts to consumers? Do consumers believe Starbucks is a socially responsible
company? Please explain and describe why or why not?
- Where does a company like Starbucks draw the line on supporting socially responsible programs?
How much of its annual budget should go toward these programs? How much time should employees
focus on them? Which programs should it support?
- How do you measure the results of Starbucks’s socially responsible programs?

Activity 2

Inside Starbucks, we can see Evian mineral water. A bottle of Evian can reach three times the price of a
regular soft drink. The brand caters to a very narrow urban market, and it, therefore, felt the need to unify its
brand communication in favor of something more global. The health and purity of the Alps were abandoned in
favor of a single message, “Live young.”
This advertisement was broadcast around the world and went on to become one of the most-watched ads ever
on YouTube with 254 million views, and held the Guinness world record in this category at one point. It was
the advert of the year for Time Magazine, Wall Street Journal, and The Guardian. It was also the 20 percent
most effective ad ever (source: GfK France, Belgium, and Germany).

Since 2009, Evian’s global brand communication strategy has been focused on both digital and traditional
media. With the Web, Evian can target precisely and reach masses easily and is one of the top brands viewed
online. The brand has also always cultivated a strong presence outside the Internet.

The brand is also a sponsor for the Paris fashion shows. In addition to this, Evian supports a variety of causes
linked to its brand territory. It is committed to the protection of the environment through the creation of
schools of water to help populations manage their water resources in an autonomous and sustainable way.
Evian is a global mineral water brand that is sold to millions of people across the world.

- Analyze the reasons for its success.

Sometimes setting a price seems so hard that you just want to put a dartboard filled with different prices up on
the wall and see what number you hit. Ok, maybe that’s being cavalier about a topic which makes the
difference between a profitable product and one that doesn’t quite hit the mark in the market. The truth is that
product pricing isn’t about just pricing your product but the strategy involved. You will be much more
successful if you use product pricing strategies as a starting point.

- How companies price

1) The learner must demonstrate a minimum of 2000-3000 words to complete the Assignment. It means
your answers must be detailed you can support your answers with theories, tables, charts, photographs,
short films, or any other media
2) Students can search for answers to every question from the internet or journal or other publications
3) Do the Assignment in sequence from Tasks 1, 2, 3 with the question-answer format. Write questions
than answers. At the end of each Task/Activity, you must include References and Citations of your
answers.
4) In answering the questions, follow instructions from Suggested Evidence. All answers must coincide
with instructions from Suggested Evidence. For example, if instruction(s) from Suggested Evidence
asked you to do a presentation, then you will have to prepare in Presentation Style which is to prepare
PPT.
5) Citations and references are to be included at the bottom page of your assignment and must coincide
with Harvard Style citations and references. Use Imperial College guidance for citations and
referencing (attached).
6) Answers must also be related to the Learning Outcome of each task
7) Self-checked Plagiarism includes not to exceed 20% of the original document/information.
8) Use Indicative content as guidance in answering questions from all tasks. You are also permitted to
add more information as long as it is related to course material and Learning Outcome.
9) Support your answers with evidence from corporate management or publications or rules and
regulations
10) Consult and cross-checked with the attached Sample of Final Assignment (Previous Batch Students
Final Assignment).
Task Learning Outcome Suggested Evidence
One Students’ show their understanding of Learners can add a table, chart,
global market strategies, Conducting pictures, to make your analysis and
Marketing Responsibly for Long- explanation will look deep. The
Term Success following topics must be covered for
this activity.

Two Managing Mass communications will Learners must demonstrate their ability
lead you to see strategic evolution and in Managing Nass Communications:
analyze with some reason to a Advertising, Sales Promotions, Events
successful company and Experiences, and Public Relation.
Explore it and describe the requirement
with the theory that you have and your
experience.
Three Understand Developing Pricing The learner must produce reports use
Strategies and Programs words. The learners know how to
create a graph and interpret the graph
based on their research. The learner has
to understand the Developing Pricing
Strategies and Programs to view and
describe the requirement.