Part-B

Scenario and activity:

With reference to Part-A, you have been appointed as the new marketing executive for the organisation
you have chosen in Part-A. The first objective you have been set is to research the competition and
produce a marketing plan based on your findings, to drive forward the marketing objectives for the
organisation. you are required to work on the following tasks and present the relevant documents.

Task-One: Compare how two different organisations within the same competitive market apply the
various elements of the 7Ps marketing mix. This will be submitted as a briefing paper for the marketing
team.

The briefing paper will evaluate how the marketing mix is applied to achieve business objectives,
relating to the two chosen organisations. This research will inform your situational analysis and enable
you to formulate marketing goals and objectives for your organisation based on the comparative
findings.

Introduction:
Starbucks is one of the leading coffee houses in the world, It has around 24000 plus stores around the globe, it
was initiated in Seattle in 1971. It has been operating successfully in 70 countries throughout the world.
Following is the marketing mix of Starbucks :

1. Products :
Starbucks has been successful in offering its customers a different drink and food options. The essential
category that it offers is cakes and cookies, breakfast, soft drinks, tea, coffee, fresh fruit and lunch. However, it
is famous for its hot roast and brewed coffee. It is known because of its premium teas (O'Donnell, 2008).

2. Price at Starbucks:
There are various strategies of prices which are implemented by the management of Starbucks. The strategies
used at Starbucks are a cost-plus, going-rate, loss leader and many more. It mostly uses the premium pricing
strategy, there is a conception in the customer’s mind that quality products often come with a high price.
Starbucks uses this conception to set the price of its products.

3. place
It offers most of its products through the Starbucks cafés. As the company works efficiently in 70 countries
with 24k stores, it has introduced a special product termed as “ Starbucks on the go”. It is a self-serve beverage
solution that provides a great taste. There are various Starbucks application for each platform which is used by
multiple customers if they wish to get their coffee instantly as they enter the store.

4. Promotional strategy:
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There is a number of promotional strategies used by Starbucks to communicate with its customers and
stakeholders. It was reported by the Garnick (2016) that Starbucks spent around $248.6 million solely on
advertisement. It also has a loyalty scheme which is termed as “Starbucks Rewards”.

5. People
It has a huge workforce. Starbucks has been planning to recruit more employees around the world. It has
planned to appoint 240k more people. Starbucks is an equal opportunity employer that wants to give a better
opportunity to people. It is well known for its training programs and development seminars.

6. Processes
Every business function of Starbucks goes through a certain process, such as it takes the customer service
very crucial. However, it is a very busy coffee shop but still, the ethics for employees at Starbucks is to greet
the customer . Once the order is delivered, farewell is also given by the employees. The processes aid to
make Starbucks what it is today.

7. Physical Environment :
The physical environment of Starbucks is not confined to the design of the store, logo, coffee cups or the
napkins used within the store. They have a very inviting atmosphere.It has a unique approach for designing the
store.The new approach lets the designer look at each store as an individual.

7P Marketing mix for Mcdonalds.

Now we’ll consider the marketing mix of Starbucks competitor which is Mcdonalds.
McDonald’s is one of the leading fast food chains throughout the world. It is widely known for its burgers and
drinks. The 7Ps of McDonald’s are discussed below which can help to give insight into the organisation.

1. Product:
There is a wide range of products which are offered at McDonald, it includes breakfast, burgers, fries, snacks
and sides, shakes, ice-cream, salad and desserts. There are numerous options which are provided to the
customers such as Egg white, Egg McMuffin, Hotcakes, Cheeseburger, vanilla shake and many more.

2. Price
There are different techniques which are used by the McDonald’s to sell their products to their customers.
Some of the strategies are cost-plus pricing, going rate, value pricing, price discrimination. The aim of
McDonald’s is to provide the food for the customer at a competitive value. The prices do vary at different
outlets of McDonald’s due to the number of factors. The prices are set by the demand-based method, every
McDonald’s set their own prices as per the demand of the local market(McDonald’s, 2017).

3. Place
It refers to the distribution strategies. It is the essential way through which the products are reached towards
the customers.There are various distribution techniques which are used by MacDonalds .It varies from country
to country, it even offers a home delivery service in some countries. There are many of the franchisees which
are open 24 hours.

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4.Promotion
It has one of the most tactful ways of advertising its new products. The food chain uses all platforms for
promoting its products such as magazines, billboards , television and newspapers. It uses different techniques
of the sales promotion .buying one thing will get you another thing for free. Such as buying a burger will get
you to drink free (Haskova, 2015).

5. Process
Ther activities which are performed at Mcdonalds do vary. There are many activities which are considered for
the delivery of the products. Such as food preparation is one of the important activity and it is transparent,
customers are allowed to visit the kitchen anytime.

6. People
There are around 97K people who are employed at McDonald’s. 70% of the McDonald’s chains are owned by
the common men and women in the UK. McDonald’s also invests on the training and development sessions of
the employees (Rold, 2019).

7.Physical evidence
It has a very appealing ambience. McDonald’s has made sure that the customer should feel like home when
they come for food. They have a hygienic interior with the play area for children.

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Task-Two: Produce a marketing plan to meet marketing goals and objectives. The marketing plan
should include all elements of the 7Ps marketing mix, with a tactical action plan and measures for
monitoring and evaluating progress and meeting of goals and objectives.

Pearson Education 2016, Higher Education Qualifications, Assignment Brief

1. Audience:
The Audience of Starbucks is planned out strongly to pinpoint the customers who are interested in Starbucks.
 Target: The target audience is pinpointed by the company.
 Customer Journey: It plans out the path that the customer considered while coming to Starbucks for a
snack.
 Value Proposition: The value provided to the customers by Starbucks.

2. Strategies :
There are many of the strategies used by Starbucks to engage its audience.They are readily used so that
objectives and goals can be achieved (Lon, 2019).

 Marketing goals: it considers the market value and then considers the goals of the organisation.
 Key strategies: There are different strategies used by Mcdonald’s that help to stay in the game and
provide the best services to the customers.
Pricing Positioning the prices vary as per the location of the outlet.
3. Activities

 marketing channels: there are many of the marketing channels used by the outlet.

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References :
1. O'Donnell, M. (2008). McDonalds Education? My Experiences with Information Technology. New Zealand
Journal of Geography, 117(2), pp.10-13.

2. Rold, p. (2019). [online] Howandwhat.net. Available at: https://www.howandwhat.net/marketing-mix-

mcdonalds-mcdonalds-marketing-mix/ [Accessed 7 Apr. 2019].

3. Lon, H. (2019). Agile Marketing resources, training and support.. [online] Get2Growth. Available at:
https://get2growth.com/marketing-plan-example/ [Accessed 7 Apr. 2019].

4. Haskova, K. (2015). Starbucks Marketing Analysis. CRIS - Bulletin of the Centre for Research and
Interdisciplinary Study, 2015(1), pp.11-29.

Pearson Education 2016, Higher Education Qualifications, Assignment Brief