Marketing Mix of The WORKS Gourmet Burger Bistro –

Definition & Explanation

Neil Borden of Harvard Business School first used the term “Marketing Mix” to explain
the set of activities that a firm uses to execute its marketing strategies. According to Neil
Border, organizations blend the various elements of marketing mix into a marketing
strategy that helps the organization to compete and developed a differentiated
positioning in the market place.

The 12 core elements of Neil Borden Marketing Mix are -

1 - Branding,
2 - Physical Handling - Logistics,
3 - Packaging,
4 - Channels of Distribution,
5 - Marketing Research – Fact Finding and Analysis,
6 - Pricing,
7 - Advertising ,
8 - Servicing,
9 - Personal Selling,
10 - Promotions,
11 - Merchandising – Product Planning ,
12 - Display

Link for other resources

Consolidation of 12 elements of Marketing Activities into 4Ps of Marketing

Mix

Jerome McCarthy consolidated the 12 elements of marketing mix and other critical
component into a simplified framework – 4Ps of Marketing Mix.

What are the 4P’s of Marketing Mix

The 4Ps of Marketing Mix are -

1. Product – The products Burger Miller is making or are in the pipeline to capture
potential markets.

2. Price – Pricing strategy that Burger Miller is pursuing in various customer segments it
is operating in.

3. Place (Channels of Distribution ) – Distribution mix of Burger Miller has taken a new
dimension with the emergence of Online Retailing & domination of players such as
Amazon.

4. Promotion (Communication Strategy of Burger Miller) – The emergence of social

media and online advertising has changed the landscape of Burger Miller
communication mix and communication strategy.

Products – 4Ps in The WORKS Gourmet Burger Bistro Case

In marketing strategy, product is not viewed as a tangible product, but the source of
value to be delivered to the customers. Value to the customers of Burger Miller can be
delivered in numerous ways such as – financing plans to purchase the products, physical
product , word of mouth references, convenience of availability , quality assuring brand
name, point of sale equity, priming and pre purchase education provided by sales staff,
installation and repair services etc.

These numerous ways to understand product concept provide marketing managers of

Burger Miller an opportunity to differentiate its overall value proposition from that of
the competitors.

4 Stages of Product Management as part of Marketing Process

Identification of Opportunity – Market research and customer research is done to

identify the needs of the customers that Burger Miller can cater to with its present and
acquired resources.

Design and Testing – Product is designed based on the value proposition that
customers are seeking and one that Burger Miller can deliver. The key consideration
regarding product design and testing are – customer value proposition, regulatory
requirements, Burger Miller skills and resources, opportunities for differentiated
positioning, and profitability.

Burger Miller Product Launch – It includes decision regarding pricing, communication

strategy, distribution channel management, and building infrastructure to provide post
purchase services.

Product Life Cycle Management of Burger Miller products – Once the product is
launched the company needs to manage the life cycle of the product through its various
stages such as – introduction, growth phase, cash cow stage, and finally decline stage.

Product Line Planning Decision

There are three major product line planning decisions that Burger Miller can take –
Product Line Breadth decision, Product Line Length decision, and Product Line
Depth decisions. Some of the considerations that marketing managers at
companyname need to take while making product line decisions are –

1. Does the product launch or product extension launch satisfy potential customer
needs and wants in a way that can deliver profits to the firm.

2. Will the product will be viewed completely different from the existing products of the
firm and how much is the risk of cannibalization of the present brands by a new brand.

3. How the new product brand launch will impact the overall brand equity of the Burger
Miller present brands and products. For example often launching a no frill product may
end up impacting the image of the company as an innovator in the field. This is one of
the reason why Apple stopped selling its plastic phones as it negatively impacted the
image of the company as a deliverer of superior hardware products.

Product Line Breadth Decision for Burger Miller

As the position of Burger Miller in its industry well established it can expand to the
adjacent segments where the customers are using complimentary products from other
brands to get the maximum value out of the products.

Product Line Length of Burger Miller

The decision regarding product line has to be balanced between complexity of the
present products and service required, and available niche space available in the market
place. From my perspective at present Burger Miller should stick with the present
merchandise mix rather than launching new products to expand the product line.

Product Line Depth of Burger Miller

These are decisions regarding how many different Stock Keeping Units (SKU) of a given
product. For example Apple has its iPhone in various colors even though the hardware
and software is the same.

Product - Broad Recommendations

1. Burger Miller can introduce a new brand in the existing product line or it can strive to
establish a whole new product line.

2. Burger Miller can think of ways - how features and value can be added to existing
brands that help them in consolidating and increasing their market position.

3. Burger Miller can try to reposition the products from the existing brands within one
line.

4. Burger Miller can stop selling the products that are either not profitable or not
creating enough differentiation from the existing products.

Pricing – 4Ps of Marketing The WORKS Gourmet Burger

Bistro
Pricing is a highly complex activity and we will cover only a very limited aspect of what
goes into pricing decisions. To a large extend pricing depends upon the other 3Ps of
marketing – product, place and promotion. Conceptually perceived value is the
maximum price a customer is willing to pay for Burger Miller product in the given
competitive context.

Cost Base Pricing

Under cost based pricing strategy – Burger Miller can work out what it takes to produce
the product and put a markup based on profit it wants earn. In a highly competitive
strategy with dynamic pricing the strategy may not be feasible. For example Uber
running losses in billions can provide lower prices and sustain compare to individual taxi
service provider who is not backed by private equity and long term strategy.
Value Base Pricing

Value Base Pricing is a pricing strategy which is based on customer perception of value.
It inculcates put the number on both tangible and intangible benefits with a clear
understanding of elasticity of demand and competitive pressures.

Market Penetration Pricing

Burger Miller can employ this pricing strategy where it launch a new product either at
loss or at very low margin to get a foothold in the segment.

Market Skimming Pricing

For certain well established brands, Burger Miller can increase the prices as customers
can pay higher price.

Good Value Pricing

Offering right mix of product features, quality, and service combination at fair price. For
example offering a limited frill option - customers can have initial product experience at
an accessible price. GoPro use this strategy extensively.

Competition Based Pricing

The pricing strategy is based on the competition in the market. Under this strategy
Burger Miller focus is to match the prices of the competitors and focus on reducing the
cost of operations to increase profitability.

Pricing Recommendation

Based on the evidences at hand – we can choose the following pricing strategy

High Brand Awareness – The brand of Burger Miller is well respected in the market so it
can fetch a slight premium over the other competitive brands.

Innovative Product – With advanced features the product is perceived as innovative in

the current market context. A slight premium price will not only emphasize the features
of the products but also stops other players entering into the present segment. A high
premium price may attract new entrants and thus lower the profitability.
Place – Distribution Channels - 4Ps in The WORKS
Gourmet Burger Bistro Case
Place or Distribution Channel is a set of processes through which Burger Miller delivers
its products to the customers. Distribution & Marketing channels fulfill various purposes
such as – providing extensive product assortment using product line – breadth, length,
and depth, easy availability of the products to end consumers , after sales services and
installation services, reducing purchase lot size thus enabling opportunities for
individual customers to buy products, providing customers information about the
products , providing product quality assurance, enabling product customization options
at the point of sales,and logistics.

Designing Channels of Distribution for Burger Miller

There are two major Channel of Distribution related decision criteria –

1. Channel Design

Burger Miller needs to choose whether it wants to implement a distribution system

which is – Direct, Indirect, or Both. The channel design decision involves - understanding
of customer value proposition, current customer convenience points, length breadth
and depth of Burger Miller product line, and competitors’ distribution systems.

Direct Distribution System – Burger Miller putting its own direct distribution channel and
reach directly to the customers. It can be through opening its own stores or just selling
all the products online.

Indirect Distribution System – Burger Miller including channel partners such as

wholesalers, retailers, logistics companies, and distribution agents.

Hybrid Distribution System – Burger Miller should implement a hybrid model where the
critical aspect of distribution system are managed by Burger Miller, and secondary
functions such as logistics, warehousing, store management etc are delegated to various
channel partners.
2. Channel Management

Channel management is about managing various power centers within the delivery
system and managing them based on bargaining power of each player in the value
chain. The channel management from marketing perspective can be done considering
three critical aspects –

Per Unit Cost of Stocking – If the cost is high then Burger Miller needs channel partners
which can pool in resources. Otherwise Burger Miller can do the operations on its own.

Market Development Requirement – One of the most prominent functions of channel is

market development. If Burger Miller needs higher market development efforts then it is
sensible to include channel partners who have know how and skills to expand into new
markets.

Customer Willingness to Search & Travel to Purchase Good – If the customer willingness
is high then company has a strong brand awareness and brand loyalty. Burger Miller can
design favorable channel policies vis a vis channel partners.

Promotion - Marketing Communication

Promotion Mix or Integrated Marketing Communication strategy is a mix of various
promotion tools that are at disposal of Burger Miller. They are – Advertising, Sales
Promotion, Personal Selling, Public Relations, and Direct Marketing.

Burger Miller can use all these five communication tools to persuasively communicate to
customer – existence of the product, price of the product, differentiating features of the
product, places where people can buy the products, and finally how consumers can
effectively use the products or services.

6M Model of Marketing Communication Strategy for

Casename
With the increase importance of online advertising and social media role in product
promotion, 6M Model of marketing communication has become a critical marketing
tool in hands of marketing manager and promotion strategist to measure marketing
efforts impact. The 6M of Marketing Communication Strategy Model are –

Market – The target segment – current or potential, at which the marketing

communication efforts are aimed at.
Mission – What are the goals and Key Performance Indicators of the marketing
communication strategy.

Message – What are the specific aspects – brand awareness, product features etc, that
Burger Miller wants to communicate to its target customers.

Media – Which are the most effective media vehicle that Burger Miller can use to convey
its message to its target market.

Money – Like all other organizations, Burger Miller has limited marketing resources so it
has to figure out how it needs to spend to get the best outcome based on specified
objectives.

Measurement – How is the promotion campaign impact is measured. It can vary from
brand to brand within the organization. For example – new product campaign can be
measured on spreading brand awareness, while existing product marketing campaign
can be measured on repeat purchase or product recall.

Email Marketing for Burger Miller

Email Marketing is form a direct marketing approach that Burger Miller can take to
directly reach out to its potential customers. Email Marketing can help the Burger Miller
to reach out high probability prospects based on the data collected by the company
using its kiosks, trade marketing, and customer survey.

Search Engine Marketing

Another popular form of advertising vehicle that has emerged in the last decade and
half is search engine marketing where advertisements are shown to the customers
based on their search history and browsing history. Like email advertising this can result
in relevant advertising to high potential prospective customers who are already
interested into products and looking for information regarding it.