Bacardi Commercial

Name

Teacher Name

Subject

Date

Top 15 companies in terms of brand value

The fastest growing brand is Apple which has left behind all other brands in fast growth from 2000 to 2018. This has been possible because of the growth perspective of the company that is backed by excellent technological innovation. A consistent brand that remained at the top for a number of years is Coca Cola but at the end of the video, it felt quite low. In the start, Starbucks was also among the top growing brands but it was also left behind by other brands. As the time goes on, we see that brands based on technology come up and perform better as opposed to those which are not based on technology. From the year 2004, Apple started to grow itself as a strong brand and in 2018, it was far ahead of the second place holding company. Apple showed a growth of well above 100 % in most of the years under consideration. The major finding of the video is that there have been a considerable number of companies based on technology. The major success factor for Apple is the huge investment in technological aspects which means that it can use its technological knowledge to produce excellent products. Google is second to Apple which is a complete technology-based company and is rated on the quality and consistency of its services. There are some car manufacturer companies in these lists but they have not been able to come to top 5 at any stage. Coca Cola is the only company in top 5 of 2018 that provides a consumer product in the form of drinks. It has remained in this list on a consistent basis because it has stuck to the formula at hand and no other competitor has been able to copy it. The crux of this analysis is to keep an eye on the future and stick to the thing that the company can do its best at. CITATION The191 \l 1033 (rankings).

Works Cited

BIBLIOGRAPHY rankings, The. Top 15 Best Global Brands Ranking. 12 February 2019. https://www.youtube.com/watch?v=BQovQUga0VE.

Beware: Fake News

Fake News

Name of Student

Name of Institution

Author Note

Answer 1

Both Facebook and Twitter can use the Click-Gap technology to avoid the spread of fake news from their platforms. Websites are identified which receive unequal proportion of traffic from their websites. The posts of these websites will be given lesser priority in the future. This will identify the websites which are not getting enough links from other websites like Google or Yahoo. This will mean that they are primarily relying on social media websites to get content. This is similar to the page rank system used by Google which segregates the pages based on number and quality of websites attached to a page. This variant of Click Gap will take the low quality pages to the bottom of news feed so very few people will be able to see them CITATION Sal19 \l 1033 (Rodriguez, 2019).

Answer 2

The first requirement for the students is to develop a reading habit so that they can go through a number of news on a daily basis. After some time, they will be able to learn which stories they should read. As far as the news on the Social media is concerned, the first step is to check the source of the news, whether the news is directly shared from the source or from some other person’s wall. The number of comments will also help to judge the authenticity of this news. Another aspect of the authenticity of the news will be the retweets, in case of Twitter. A study of the ongoing standards adopted by the newspapers and other agencies will help students to increase their knowledge. There are some IT related aspects which will help these sites to stop the flow of fake news. Measures to prevent hacking by the hackers can help these sites to provide reliable news. Students will have to study the general perception of the public to judge the reliability of news sources.

References

BIBLIOGRAPHY Rodriguez, S. (2019, April 10). https://www.cnbc.com/2019/04/10/facebook-click-gap-google-like-approach-to-stop-fake-news-going-viral.html. Retrieved from https://www.cnbc.com: https://www.cnbc.com/2019/04/10/facebook-click-gap-google-like-approach-to-stop-fake-news-going-viral.html

Billboard Advertising

Name

Name of Professor

Class

Date

Billboard Advertising

Mountbatten Program

The business objective of Mountbatten Program is to ensure proper connection between successful international businesses and the motivated young professionals. Proper career directions are provided by this particular program considering the options of an international internship, and cultural exchange, etc.

This particular organization effectively utilize different aspects of billboard advertisement. The logo and the main features of the company are clear for the observers which are a good strategy to indicate potential customers about the customers. The tag line of the company, “transforming lives and career” is also successfully delivered through advertisement.

PM Business Advisors

The organization of PM Business Advisor functioning in the market with the objective to provide necessary instruments to clients to ensure unique opportunities that eventually helps them to enhance their operations.

All the business services offered by the organization are clearly illustrated in the form of a billboard advertisement in the fair. The missing features of this form of advertisement are recognized in the form of proper contact address and the punch line of the business.

Top Prospect Group

The business organization of Top Prospect Group deliver leading IT and finance/accounting solutions to its customers. A focused approach of this organization helps clients to identify suitable talent.

All the metrics of billboard advertisement are successfully utilized by this specific organization. The most attractive part of this form of advertisement is that the message of business is clear for the customers. The web address of the organization is also present to make it easy for the target customers.

Barnum Financial Group

This particular organization aims to provide financial planning services to clients. The customized working domain is provided by the organizations to meet the actual financial targets of the customers.

The technique of brief business introduction is used by the company to introduce their business to the observers. Some important elements of billboard advertisement are missing that make it difficult for people to get a complete overview of the whole business.

Capgemini America Inc.

The Institute of Capgemini America Inc. is a business management consultant organization situated in New York City. It is recognized as one leading entity concerning the approaches of consulting, technology services, and the domain of digital transformation.

The billboard presented by Capgemini America Inc. is one great example of the effective use of billboard advertisement. Different organizational services are clearly explained at the billboard. Different visual effects are effectively used to grab the attention of the observers.

Breadmaking Preliminary Report

Student’s Name

Professor’s Name

Course Code

Date

Bread making Preliminary Report

In brief, Karen purchases a bread making company in order to improve it and make profit in the market. The owner of the company sold it because it could not make profit but there were plenty of customers. The problem which the company was facing was related to cost and price, It seems the right approximation of cost of production was not being done and therefore, it was affecting the pricing techniques hence it could not generate a good profit for the owner. Upon purchase, Karen made a number of changes regarding overhead expenses, which affect pricing but still the solution was not solved since it could not compete effectively with its competitors and generate profits.

Key Factors that are in the Case

First, the prices overhead expenditure such as ingredients, and wages were not done properly. Though Karen did a ten years plan, to structure the pricing of ingredients, she did not factor in the changes of prices of these ingredients. In this case, Karen did not include the fixed the cost in her calculation, expected changes in overhead cost, market competition and expected new entrants in the market. It is possible that Karen did not factor in market competition and this affect the performance of the products in the market. Another factor is the price and quality. It seems that Karen focus on the price and failed on quality. A study established that most clients in Canada love quality products and they would rather buy quality product despite the higher price. The factors in the case are pricing strategy, markup for competition, and costing of the production items. However, markup for competition is the main factor in this case. Karen ought to have done a good market research to understand the market trend, and the competitors in the industry. This would have helped in pricing and even the marketing strategy to utilize.

Problem or problems to be solved in the case solution

In this case, pricing is an issue which should be solved. First, Karen has failed to price the bread based on the quality of the bread being manufactured and this has deny the company a huge market segment. The pricing of the products should be done based on the overhead expenditure and the quality of the bread. Since studies have indicated that Canadians do not care about the price as long the products are of quality. It would be important to include all the cost incurred to increase the profit margin of the company. It is noted that Karen has failed to make profit due to low prices which gives her no margin based on cost of production and sales. In this case, she makes loses and this is a threat to her company. It is noted that she did not factor in price variation over a period of time and therefore, this should be done as well to include the expected price changes.

There is also a problem with marketing strategy being applied by the company. Karen is focusing on the price without looking at the brand and other market segment which could have been influencing the prices of the products. With efficient marketing strategy focusing on building a strong brand, the prices of other breads in the market would have not been an issue. The marketing strategy of a company should revolve around building a strong brand, which would be preferred by clients no matter the price difference in the market. It is noted that Karen did not do any marketing to test how the product can perform based on the quality. Instead of focusing on the pricing alone, it would be advisable to focus on quality, competitors, and cost when doing pricing of the products. This would have given the company advantage in the market since research indicated that customers prefer quality product rather than quantity. The bread ought to have been of high quality and competitively priced against its competitors.

It would have recommended for Karen to identify the market segment of her products. Market segment is based on demographics which the company would want to focus on in the market. The problem Karen was focusing on the entire market and this made it difficult to compete effectively with other competitors. Focusing on the market segment allows the company to produce and priced products based on the clients taste, financial status, preferences and demand. The focus of Karen ought to have been middle and upper income with quality bread, it would have been a problem for this demographic since most of them focus on quality rather than price.

However, it is also recommended for Karen to produce variety of breads with different ingredients and price them different to give clients a choice on what they can purchase from the store. In this case, some bread would go for $3.5, $4.20, $ 5.40 and $6.00. This classification of pricing should be done based on cost of production, number of bread produce and other overheads. With this pricing strategy, Karen products would have gain access to all market segments and compete effectively with other competitors with both low and high prices in the market. Addressing the problem of costing, marketing plan and pricing would give the company more advantage in the market. It is therefore, important for Karen to understand market competitors in order to apply the right pricing strategy.

Bsbmkg502

BSB52415

Diploma in Marketing and Communication

Student Name:

Student Assessment Booklet

BSBMKG502

Establish and adjust the marketing mix

Table of Contents

TOC \t "Heading 1,1,Title,1,Document Heading,1" Table of Contents PAGEREF _Toc511824445 \h 2

Assessment Information PAGEREF _Toc511824446 \h 3

Assessment Instructions PAGEREF _Toc511824447 \h 5

Student Assessment Agreement PAGEREF _Toc511824448 \h 6

Assessment Task 1 Cover Sheet PAGEREF _Toc511824449 \h 7

Assessment Task 1: Written Questions PAGEREF _Toc511824450 \h 8

Assessment Task 1 Instructions PAGEREF _Toc511824451 \h 10

Assessment Task 1 Checklist PAGEREF _Toc511824452 \h 12

Assessment Task 2 Cover Sheet PAGEREF _Toc511824453 \h 13

Assessment Task 2: Marketing Mix Selection Project PAGEREF _Toc511824454 \h 14

Assessment Task 2 Instructions PAGEREF _Toc511824455 \h 15

Assessment Task 3 Cover Sheet PAGEREF _Toc511824456 \h 19

Assessment Task 3: Marketing Mix Adjustment Report PAGEREF _Toc511824457 \h 20

Assessment Task 3 Instructions PAGEREF _Toc511824458 \h 21

Assessment Task 3 Checklist PAGEREF _Toc511824459 \h 23

Assessment Task 4 Cover Sheet PAGEREF _Toc511824460 \h 24

Assessment Task 4: Marketing Mix Case Study PAGEREF _Toc511824461 \h 25

Assessment Task 4 Instructions PAGEREF _Toc511824462 \h 26

Assessment Task 4 Checklist PAGEREF _Toc511824463 \h 27

Assessment Information

The assessment tasks for BSBMKG502 Establish and adjust the marketing mix are included in this Student Assessment Tasks booklet and outlined in the assessment plan below.

To be assessed as competent for this unit, you must complete all of the assessment tasks satisfactorily.

Assessment Plan

Assessment Task

Overview

1. Written questions

You must correctly answer all the questions.

2. Marketing mix selection project

You must choose a company and product and determine a suitable marketing mix.

3. Marketing mix adjustment report

You must review marketing performance and report on adjusting the marketing mix.

4. Marketing mix case study

You must review a case study and answer a series of questions about monitoring and adjusting the marketing mix.

Assessment Preparation

Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for clarification if you have any questions at all.

When you have read and understood this unit’s assessment tasks, print out the Student Assessment Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.

Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.

Assessment appeals

If you do not agree with an assessment decision, you can make an assessment appeal as per your RTO’s assessment appeals process.

You have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Naming electronic documents

It is important that you name the documents that you create for this Assessment Task in a logical manner.

Each should include:

Course identification code

Assessment Task number

Document title (if appropriate)

Student name

Date it was created

For example, BSBMKG502 AT2 Marketing Mix Report Joan Smith 20/10/18

Additional Resources

You will be provided with the following resources before you begin each Assessment Task.

Assessment Task 2

Marketing Mix Report Template

Assessment Task 3

Case Study

Revised Marketing Mix Report Template

Assessment Instructions

Each assessment task in this booklet consists of the following:

Assessment Task Cover Sheet

This must be filled out, signed and submitted together with your assessment responses.

If you are submitting a hardcopy, the Cover Sheet should be the first page of each task's submission.

If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit the file.

The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per

your RTO’s re-assessment policy.

Depending on the task, this may include

resubmitting incorrect answers to questions (such as short answer questions and case studies)

resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task

redoing a role play after being provided with appropriate feedback about your performance

being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.

Assessment Task Information

This gives you:

a summary of the assessment task

information on the resources to be used

submission requirements

re-submission opportunities if required

Assessment Task Instructions

These give questions to answer or tasks which are to be completed.

Your answers need to be typed up using the software as indicated in the Assessment Task Instructions.

Copy and paste each task’s instructions into a new document and use this as the basis for your assessment task submission. Include this document’s header and footer.

If you are submitting electronically, give the document a file name that includes the unit identification number, the task number, your name and the date.

Checklist

This will be used by your assessor to mark your assessment. Read through this as part of your preparation before beginning the assessment task. It will give you a good idea of what your assessor will be looking for when marking your responses.

Student Assessment Agreement

Make sure you read through the assessments in this booklet before you fill out and sign the agreement below.

If there is anything that you are unsure of, consult your assessor prior to signing this agreement.

Have you read the assessment requirements for this unit? Yes No

Do you understand the requirements of the assessments for this unit? Yes No

Do you agree to the way in which you are being assessed? Yes No

Do you have any specific needs that should be considered? Yes No

If so, explain these in the space below.

Do you understand your rights to re-assessment? Yes No

Do you understand your right to appeal the decisions made in an assessment? Yes No

Student name

Student number

Student signature

Date

Assessor name

Assessor signature

Date

Assessment Task 1 Cover Sheet

Student Declaration

To be filled out and submitted with assessment responses

I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).

I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

I have correctly referenced all resources and reference texts throughout these assessment tasks.

Student name

Student ID number

Student signature

Date

Assessor declaration

I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor name

Assessor signature

Date

Assessment outcome

S

NS

DNS

Resubmission Y N

Feedback

Student result response

My performance in this assessment task has been discussed and explained to me.

I would like to appeal this assessment decision.

Student signature

Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 1: Written Questions

Task summary

This is an open book test, to be completed in the classroom.

A time limit of 1 hour to answer the questions is provided.

You need to answer all of the written questions correctly.

Your answers must be word-processed and sent to the assessor as an email attachment.

Required

Access to textbooks/other learning materials

Computer and Microsoft Office

Access to the internet

Timing

Your assessor will advise you of the due date of this assessment.

Submit

Answers to all questions

Assessment criteria

All questions must be answered correctly in order for you to be assessed as having completed the task satisfactorily.

Re-submission opportunities

You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Written answer question guidance

The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected.

Note that the following guidance is the minimum level of response required.

Analyse – when a question asks you to analyse something, you should do so in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.

Compare – when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.

Contrast – when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.

Discuss – when a question asks you to discuss something, you are required to point out important issues or features and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.

Describe – when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.

Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.

Examine – when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.

Explain – when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.

Identify – when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.

List – when a question asks you to list something, this means that you are asked to briefly state information in a list format.

Outline – when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.

Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.

Assessment Task 1 Instructions

Provide answers to all of the questions below:

Outline two organisational policies and procedures that are relevant to marketing.

Drug and Alcohol use

Drug and Alcohol policy highlights that the employees will be prohibited from taking drugs and using alcohol within the workplace. There are a lot of people who think and believe that drug and alcohol use affect the performance of the employee.

Occupational Health and Safety

It is a pledge to the employees and infers that the employer is actually responsible for the health of the employee. It will impart a sense of security for the employee. Moreover, the credibility of the organisational will be increased.

Analyse the following information on products and services and, based on your analysis, recommend an appropriate marketing communication method. Provide a rationale for your recommendation.

Product

NatureCare Products is an Australian owned producer of natural skincare products. Its main target groups are professional women aged 25 – 55. The company wishes to promote its products as high quality, eco-friendly products. Currently, products are sold online and through health care shops. However, the company wishes to find other media options that fit its branding image. Being a profitable company, it can afford to spend at least $50,000 on marketing.

Event and Experiences

Event and experiences is one of the marketing communication methods that can be used by Nature Care Products because the main target groups are professional women. Professional women are more towards sponsored events and they can easily be attracted to any sponsorship event. It is also added that they are critical thinkers who believe more in experiences and live streams so the product can be easily be marketed. It is also important to note that the event and experience will incorporate realistic understating of the product that will ultimately increase customer satisfaction in the form of more purchase.

Service

Grow Management Consultants provide leadership development services to businesses. The company has been established for six months only and has 5 clients. The company would like to expend its client-based but due to limited funds is seeking advice on low cost and effective media options.

Buzz marketing is one of the communication methods that can be used for the marketing of the service because the company don’t have enough funds so, word of mouth will help to communicate the services. It will also include sail media that is one of the cheapest and approachable platforms for marketing. So, buzz marketing will involve two methods, both social media and personal interaction by the already made clients. Both the methods are least economic and more productive in attracting more clients along with a positive vision because fewer resources would be spent. (De Mooij, 2019)

Outline how the development of new products or services can provide marketing opportunity options for a business, both in existing and new markets.

There are different options in which the development of new products and services can provide marketing opportunities for a business, both in new and existing markets

Consumer segmentation

Consumer segmentation refers to the characteristics that are common between customers. Formation of a product by analysing its customer's ratio can provide marketing opportunities in both existing and new markets. It will provide an opportunity for marketing because the product will be advertised in the required area in both new and existing markets/

Situation analysis of the purchase

Analysing the situation of the purchase can also help to provide marketing opportunities because addressing the need of hour can help to address marketing opportunities in both new and existing markets. In this way, new products and services can be provided with marketing opportunities.

Direct analysis of competition

Analysing the competition within the market can help to define an opportunity for the development of new products or services. Making decisions strategically after analysing competition will help to enhance marketing in both old and new markets.

Indirect analysis of the competition

Analysing substitute industries is another approach that can help to develop and identify new marketing approaches in the development of new products and services. This opportunity can be applied to both new and existing markets because it will involve an exegetical approach to the market.

Describe the purpose of the marketing mix and each of its components.

Marketing Mix

Marketing Mix is defined as a group of marketing variables that are combined and controlled by the firm. It also includes the production of desired response within a particular market, Marketing mix is one of the major marketing tools that comprise of different elements which can influence the demand of the products that are offered by the firm (De Mooij, 2019).

Components

There are four major components of the marketing mix, also called "Four Ps"

Product

Product refers to goods and services that are offered for the customers. It is asserted that the companies should make strategies that can help to introduce the products which are in high demand and involve features such as some, packaging, services and brand name (De Mooij, 2019).

Price

Price is termed as the amount that is paid by the customers to get the desirous product. It is asserted that the pricing of the products should be done by the analysis of market trend and competitors (De Mooij, 2019).

Place

Place infers the availability of the product in the market. It also highlights the market channel that is chosen to reach the customers (De Mooij, 2019).

Promotion

Promotion highlights the communication of marketing such as publicizing of the product to maximize its demand. It also includes gaining the attention of the employees to maximize the sale (De Mooij, 2019).

Describe three key principles of consumer behaviour and their influences on consumer buying behaviour

The key principles of consumer behaviour are

Personal principle

The personal approach of customer highlights that the customer is purposeful and he is gaol oriented, it highlights that the customer behaviour is the product of his needs, choice and lifestyles.

Personal principle influences the management and distribution of the product because a customer will buy only that product which is of his need. He will look forward to a product that is similar to his lifestyle and that has something to do with the choices and lifecycle of the customers.

Psychological Principle

The psychological principle highlights that the customer has a free choice and he can buy a product from anywhere. There is no restriction in terms of decision-making regarding a product.

The psychological principle towards consumer behaviour influences that consumer free choice, under which he can exercise his terms and conditions. It allows a customer to make perception as per his experience (De Mooij, 2019).

Social principle

Social principles include a cultural approach to consumer behaviour. It also includes the impact of the social environment and the role of social determinants in formulating understanding towards consuming or buying something. Social principle also includes the role of family, roles and statuses (De Mooij, 2019).

Social principle influences the choice of product, the process of purchasing and the desire of the product. Social principle also influences and reinforces the recommendation of the product (De Mooij, 2019).

Describe how consumer behaviour impacts on determining the marketing mix.

Consumer behaviour has a major impact on the marketing mix because all the marketing strategies and tactics that are used for attracting customers and increasing the demand for the product are made by keeping consumer behaviour in vision. The functions of market mix or the four Ps of the market are deducted, enhanced and changed on the basis of market scenario that is determined by the consumer behaviour because the psychological process that is used by a consumer to identify their needs and determine the gaps.

Describe the product life cycle and its impact on the marketing mix.

All the products within a market move and go through the product life cycle. It includes for different stages, named as entry or the introduction, growth maturity and then decline of the product. Product life cycle has a direct impact on the marketing mix because marketeers view product life cycle in order to pursue the positioning strategies of the product and services fitting each of the stages of the life cycle.

Describe three types of pricing strategy that a business could adopt

Three pricing strategies that a business could adopt are

Premium pricing strategy

Premium pricing strategy is one of the most effective strategies at the beginning of the product cycle. It is most significantly meant for the small business that are selling goods with some novel properties. Incorporating such a strategy would make companies create an image in which customers can perceive that the products are valuable and are of higher prices.

Skimming pricing strategy

Skimming pricing strategy is used for setting high prices by introducing new product when it is found that the market has few or fewer competitors. This strategy helps a business to maximize the profit before the entry of competitors within a market.

Economy pricing strategy

This pricing strategy sets the price at a small profit. This pricing strategy works by selling a high volume of products and services at a very low-price Usually larger companies are more towards taking advantage of low price strategy in contrast small business have difficulty in taking advantage of this pricing strategy (De Mooij, 2019).

Describe three types of promotional strategy that a business could use.

There are a lot of promotional strategies that can be used by the business, however, the most important promotional strategies are

Social Media promotional strategy

Social media websites such as Google ++ and Facebook is one of the ways that can help to promote services and products. It can help to connect customers with the products by using a direct channel.

Product giveaway and samples

Product giveaway is one of the strategies that can help to promote a product. It is asserted that the giveaway attracts more customers and introduce new products.

Branded Promotional Gifts

Branded promotion gifts are another promotional strategy that can be used for the promotion of a product or service. It is a more effective promotional approach as compared to giving out business cards. These promotional gifts can help to attract customers in a more career-oriented way (De Mooij, 2019).

Describe the three types of distribution strategy,

There are five basic distribution strategies. Among them, significant distribution strategies are

Indirect distribution

Indirect distribution is termed as a type of distribution in which product reaches the end customer by using different and numerous channels in between. It includes multiples channels used for the transfer of the product (De Mooij, 2019).

Direct DistributionDirect distribution refers to the direct sending of the product to the customer. Here, either a single channel is involved or the length of the channel of very less (De Mooij, 2019).

Selective Distribution

Selective distribution refers to the distribution of product by some selective channels or outlets. It is one of the struggles to ensure credibility and sophistication of the product (De Mooij, 2019).

Outline two statistical techniques that can be used to gather and analyse marketing information.

Two statistical techniques that can be used to gather and analyse marketing information are as follows

Descriptive Statistics

This technique summarizes the data from a sample by using some indexes such as standard deviation or mean

Inferential Statistics

It is a technique that draws a conclusion from data that is found to be a subject of random variation. In this technique, random variation includes observational errors and sampling variation.

References

De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and advertising. SAGE Publications Limited.

Assessment Task 1 Checklist

Student’s name:

Did the student provide a sufficient and clear answer that addresses the suggested answer for the following?

Completed successfully

Comments

Yes

No

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Task Outcome:

Satisfactory

Not Satisfactory

Assessor signature

Assessor name

Date

Assessment Task 2 Cover Sheet

Student Declaration

To be filled out and submitted with assessment responses

I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).

I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

I have correctly referenced all resources and reference texts throughout these assessment tasks.

Student name

Student ID number

Student signature

Date

Assessor declaration

I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor name

Assessor signature

Date

Assessment outcome

S

NS

DNS

Resubmission Y N

Feedback

Student result response

My performance in this assessment task has been discussed and explained to me.

I would like to appeal this assessment decision.

Student signature

Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 2: Marketing Mix Selection Project

Task summary

This assessment task requires you to identify and report on a suitable marketing mix for a case study company.

This assessment is to be completed in the simulated work environment in the RTO.

Required

Access to textbooks/other learning materials

Computer with Microsoft Office and internet access

Marketing Mix Report Template

Timing

Your assessor will advise you of the due date of these submissions.

Submit

Email with marketing mix report attached

Assessment criteria

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.

Re-submission opportunities

You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Assessment Task 2 Instructions

Carefully read the following:

-15875018732500

Local Realtors are a Real Estate company operating in Melbourne, Victoria

Familiarise yourself with the company and its vision in the Case Study document.

For the purposes of this assessment, assume that you are the Marketing Manager of Local Realtors and that your assessor is the Managing Director.

Complete the following activities:

Write a marketing mix report

Overview of the company and its objectives, desired position and target market characteristics

Local Realtors is a real estate company that is currently operating in Melbourne Victoria. This company deals in property, buildings, and the natural resources that surround property and land. It also includes homes that are meant for single-family, townhouses, high-value homes, and duplexes along with vacation homes.

The objectives of the company are to offer useful tools to the homeowners that can be used by homeowners to manager their homes by using home managing improvements. It also includes the selling of buildings and lands. The main objective of the company is to retain the trust of employees by maintaining productivity and credibility in the selling of buildings and homes. The target market characteristics are demographics such as gender, income, age and the amount of education. the target audience of the Local Realtors are millennials who are having an average age of 32 years.

Product/Service:

The services aim at the provision of quality lands, buildings or properties. Moreover, the product aim at the availability of lands and properties that are appealing to the customers and the maintenance of building in such a way that client retention is possible. It also aims at helping landlords and the real owners to upgrade their properties so that they can be termed as one of the most required and upgraded properties.

The service provides upgradation of the properties along with selling and renting out of the buildings that can help to retain clients. Another major benefit of the service is, real owners don't have to worry about their property because they are sure that their property is in safe hands which will give them maximum yield.

Taking into the account target market, it is highlighted that the most important features of the service are media consumption. Usually, people have to search a lot of real estate agents, whereas Realtors is one of the real estate agents who provide equal facilities online so that the time of the clients can be saved

Price:

The business approach of Local Realtors is, “Economy pricing strategy”. It is found that the company lowers its price as compared to the other real estate agents of high-quality product to attract a large number of customers.

The pricing of the service affects the take up of the product because more people attracted to a quality place at a lower price. It is one of the reasons that the company has a lineage of customers who are regular customers and they recommend other people to this company as well.

It is asserted that the product would be offered at $ 860,000 of a villa, $30,000 for an apartment and so on. It is also important to note that price variables such as discounts should be considered because it will help to attract more customers and maintain customers by offering frequent discounts

Promotion:

There are a lot of possibilities for promoting the service or product such as social media promotions and sharing the review of customers via online platforms

The targeting strategies that can be used for Realtors real estate are demographics and behavioural segmentation. Both strategies will filter the population that is looking for lands and properties. Moreover, these targeting strategies will also help to define discounts and the promotional strategies. The best way to promote the product or service is to post reviews of the customers because now a day all the services are judged on the basis of public reviews and public ratings.

Place:

There are several distribution channels for Local Realtors such as retail officers in different regions, as well as online sources such as google profile and social media websites.

The best way to distribute the product is through retail officers because it will help to reduce scams and attain more customer confidence.

Customers are provided with good and sometimes world-class service buy using live answering, emails and live chats.

The customer services that will be provided from the service are buying and selling of property and buildings. It also helps to find buildings as per requirements and gets it rented out by trustworthy people.

Analysis of varying the marketing mix

Each of the components of the marketing mix is important as price attracts customers. The product is the underlying source of an economic boost because good quality products are sold quickly. Coronation helps to advertise the product to increase its requirement and place of selling a product should be good, respectable and market-oriented so that more customers are attracted

There are various impacts of varying components of the marketing mix.

Varying components of the marketing mix will affect the worth of the product. Any change in the price and lower quality product will change its preference by the customers. The varying price will not only reduce customers but it will also associate misconception of inferior quality with the product. Mostly people will ignore high price as well, finding it unreachable for them to buy.

Four examples of how varying a marketing mix variable affect another part of the marketing mix variable.

Variation in the marketing mix will affect the other parts of the marketing mix such as lack of promotion will reduce the profit value because the product will not be sold. High prices will automatically affect the place because people will stop visiting the marketing place. Any change in the marketing place will bring a change in pricing because usually are describes and defined the price of the place. Also, change in promotion methods will reduce productivity because people will not be aware of the promotions

Determination of the final marketing mix

There are different external factors that can impact the selected marketing mix such as economic conditions. Any change in the economic condition will bring a change in the schedule of pricing that will ultimately reduce or increase the demand. Legal conditions are also equally important, imposing more taxes will affect the pricing along with a change in promotion strategies that direct employees to take decisions.

Consumer priorities, needs and preferences that affect the marketing mix for the product/service.

Marketing mix affect the customer approach towards product such as more pricing will reduce the interest of customers and less pricing will increase the interest of many customers.

Impact of marketing objectives (including positioning as identified in the marketing objectives), as well as target customer characteristics, have on the selected marketing mix?

Under the impact of marketing objectives in terms of selected marketed mix, there would be an increased approach of customer towards the company, they would feel more comfortable on buying and selling properties through Local Realtor.

Recommended marketing mix for the product or service based on a review of all factors.

It is recommended that the company should try to lower its pricing because it is too much for millennials, the target population. Moreover, the company needs to incorporate a diverse social media platform so that more customers can get in touch with the company.

Send an email to the Managing Director (your assessor).

Respected Sir,

I hope this email finds you in good health. I am writing this email to share the marketing management report of Local Realtors. The company deals in buying, selling and maintenance of buildings and properties. The company uses “Economy pricing strategy” for managing pricing and different online media are used for promotion of the company. Although there are a lot of external factors that are affecting the marketing mix, still the company is managing its marketing mix in a relative manner. The company has a targeted population the course of customer behaviours for which marketing mix is shifted and changed with the passage of time. moreover, some marketing techniques such as discounts are also used to retain old customers and attract new customers. However, it is recommended that the company needs to work on its social media platforms so that customers can get maximum support through online sources which is one of the used places by the target population to get in touch with the company.

The detail of different aspects of marketing components can be found in the attachment.

Thank you!

Yours Sincerely,

XYZ

Assessment Task 2 Checklist

Student’s name:

Did the student:

Completed successfully

Comments

Yes

No

Provide an analysis of the overview of the company and its objectives, desired position and target market characteristics?

Provide an analysis of:

Who is the product or service aimed at?

What key features and benefits does the product or service provide?

What will be the most important features or benefits of the product or service in relation to the target market?

Provide an analysis of pricing of product/service including:

General approach to pricing?

Impact of price on demand?

Recommended pricing strategies?

Additional price variables to be considered such as discounts?

Provide an analysis of:

promotional methods including:

The range of promotional methods?

Targeting strategies?

Recommended promotional methods?

Provide an analysis of the range of distribution channels and recommended way/s to distribute the product or service?

Provide an analysis of:

provision of type and level of customer service are provided to customers and intended customer service?

Provide an analysis of varying the marketing mix including:

The importance of each component of the marketing mix.

Impact of varying components of the marketing mix. For example, if the price for the product or service was varied, how would this affect the promotion?

at least four examples of how varying a marketing mix variable affect another part of the marketing mix variable?

Provide an analysis of the impact of external factors including:

External environmental factors that may impact on the selected marketing mix, for example, economic conditions, the political or legal environment?

Effect of identified environmental factors on the marketing mix?

Provide an analysis of consumer priorities, needs and preferences that affect the marketing mix for the product/service?

Provide an analysis of the impact of marketing objectives (including positioning as identified in the marketing objectives), as well as target customer characteristics have on the selected marketing mix?

Provide an analysis of the recommended marketing mix for the product or service based on a review of all factors?

Use effective written communication skills to clearly explain concepts and ideas?

Task Outcome:

Satisfactory

Not Satisfactory

Assessor signature

Assessor name

Date

Assessment Task 3 Cover Sheet

Student Declaration

To be filled out and submitted with assessment responses

I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).

I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

I have correctly referenced all resources and reference texts throughout these assessment tasks.

Student name

Student ID number

Student signature

Date

Assessor declaration

I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor name

Assessor signature

Date

Assessment outcome

S

NS

DNS

Resubmission Y N

Feedback

Student result response

My performance in this assessment task has been discussed and explained to me.

I would like to appeal this assessment decision.

Student signature

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A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 3: Marketing Mix Adjustment Report

Task summary

For this assessment task, you are required to develop a short report about adjusting the marketing mix for the case study based in response to lower than expected sales.

This assessment is to be completed in the simulated work environment in the RTO.

Required

Access to textbooks/other learning materials

Computer with Microsoft Office and internet access

Case Study

Revised Marketing Mix Report Template

Timing

Your assessor will advise you of the due date of these submissions.

Submit

Email with revised marketing mix report attached

Assessment criteria

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.

Re-submission opportunities

You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Assessment Task 3 Instructions

Carefully read the following:

-15875018796000

It is 1 year later, and the marketing mix that you had selected has not resulted in the desired increase in sales.

Whereas Local Realtors’ business goal was to exceed $1.7 million in revenue in the first year, but only $1.5 million in revenue was realised.

Due to an economic contraction over the last year, first home purchases dropped 10%.

The company's share of the first-time couples' house purchase business increased by 2%.

The proportion of leads that have been converted into sales has remained constant

As a result, you need to review the marketing mix and provide a brief report on recommended changes.

In developing your report, you should take into account that the Managing Director has indicated that any changes must ensure that overall business objectives are still met, as well as the desired positioning as expressed in the marketing objectives in the Marketing Plan.

You have also been asked to ensure than the change incurs either minimal or no expenses.

Complete the following activities:

Market trends in Melbourne real estate over the last twelve months

An analysis of the market trends reveals that the market trends in Melbourne real estate has risen in the past twelve months and there are healthy stock levels. It is found that the selling of the house is doubled as compared to the other times within last year. This analysis highlight that this market trend has affected the market trend of Local Realtors because it is a clear depiction of the fall of the market value of Local Realtors.

Review of any changes to legislation

It is observed that there are no significant changes to the legislation that has affected the results of local Realtors. So, it infers that the overall influence of the results can be traced to the marketing mix.

An analysis of each component of the marketing mix

Price

Taking into account the context of pricing, it is found that a constant ratio of converting leads into sales have resulted in the decreased market value (Haider, 2019).

Product

There is a consistent approach to products. There is no significant approach to the shifting of product or bringing innovation in the product which is the reason that the marketing mix has not increased the sales

Placing

The company has not worked on placing, such as developing social media platforms and incorporating more retail officers that is the reason for an unachieved sales promotion (Haider, 2019).

Promotion

There are limited approaches to incentives in the form of discounts and the strategies that can be used for the promotion (Haider, 2019).

An analysis of which component/s of the marketing mix should be changed

From the information given by the assessor, it is highlighted that there is a dire need to bring a change in pricing and products because is not possible to achieve maximum productivity by repeating the same approach to business.

Testing marketing mix components.

The two components of the marketing mix changes are as follows

Pricing

It is asserted that the company needs to lower its price relatively taking into acceptant the facts the overall prices in Melbourne has increased so Realtors should also have decreased its prices. It will attract customers because they will find it less when compared to the other retailers within the same area. Its performance can be testing by analysing that the company has been on top in recent years because of the pricing strategy and analysing results after its implication can be used to test productivity.

Product

There is a need for the Local Realtors to change the framework of product such as student accommodation and availability of more rental house that is meant for small families because the student ratio and small families are increasing. It will help people prefer small house and rental apartment over large buildings and mansions. The productivity can be tested by realising that the population of Melbourne has increased comparatively two times and the migrants are students and small families so the proposed strategy can help to increase the productivity of the company.

Component/s of the marketing mix affecting the business' performance

Changing the components of the market while attracting people who don't have enough money to buy large houses can be divine. Ultimately, they will share it will others and there would be an increased ratio of customers. Moreover, bringing diversity in the product will help students and small families to reach out to company and when they will find low prices they would be willing to purchase it. This trend is more common in students so introducing student apartment and small houses will attract students.

An assessment of how you believe changing the composition of the marketing mix will affect the business’ customers

Changing the components of marketing mix will help to attract more industrial customers because diversity is always appealing, but when added to the lower price then it will maximize the sales of the company because business customers will see variety of already available customers in the form of small families and students.

Changes you suggest still meet business objectives

Taking into account the already prevalent trends of increase in population especially millennials and students. it is observed that there the changes will meet the business objectives in the form of increased sales. Moreover, more industrial customers will be attracted that will maximize sales.

Whether changes to the marketing mix will incur further expenses

No, the changes to marketing mix will not be including further expenses because there would be already available buildings and homes only efforts are required to introduce the availability of students and the task will be complemented.

Send an email to the Managing Director (your assessor).

Respected Sir,

I hope this email finds you in good health. I am writing this email to share the revised marketing report. It is observed that there is a constant rate of transforming leads to sales while the overall revenue has decreased. After an analysis, it is found that the company needs to improve its marketing strategies especially in the context of pricing and product. With an increased population, it is asserted that the company should reduce its price compared to other companies adhering to its pricing policy. Moreover, the company needs to incorporate diversity in products, it will attract more customers and increase productivity in the long run.

The detail of the revised marketing report can be found in the attachment.

Thank you!

Yours Sincerely,

XYZ

References

Haider, A.A., Zafar, A., Khalid, A., Majid, A., Abdullah, M.A. and Sarwar, M.B., 2019. Marketing Management.

Assessment Task 3 Checklist

Student’s name:

Did the student:

Completed successfully

Comments

Yes

No

Provide an analysis of external environmental factors that may impact on the marketing mix, for example, economic conditions, the political or legal environment?

Monitor their marketing mix against company performance and isolate components that could be tested?

Report on component/s of the marketing mix that could be changed and why?

Assess how changing the component/s of the marketing mix affect the business’ performance?

Assess how changing the composition of the marketing mix may affect the business' customers?

Discuss how changes to be made to marketing mix can still ensure that business objectives are met?

Discuss how changes to the marketing mix will ensure that minimal or no further expenses are incurred?

Task Outcome:

Satisfactory

Not Satisfactory

Assessor signature

Assessor name

Date

Assessment Task 4 Cover Sheet

Student Declaration

To be filled out and submitted with assessment responses

I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).

I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

I have correctly referenced all resources and reference texts throughout these assessment tasks.

Student name

Student ID number

Student signature

Date

Assessor declaration

I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor name

Assessor signature

Date

Assessment outcome

S

NS

DNS

Resubmission Y N

Feedback

Student result response

My performance in this assessment task has been discussed and explained to me.

I would like to appeal this assessment decision.

Student signature

Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 4: Marketing Mix Case Study

Task summary

This assessment task requires you to review a case study and provide answers to questions based on the case study

The questions and their answers should be provided in a new Word document and saved as a Case Study Report. It should be sent to the assessor as an email attachment.

This assessment is to be completed in the simulated work environment in the RTO.

Required

Access to textbooks/other learning materials

Computer with Microsoft Office and internet access

Timing

Your assessor will advise you of the due date of these submissions.

Submit

Email with case study report attached

Assessment criteria

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.

Re-submission opportunities

You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Assessment Task 4 Instructions

Listen to, or read the case study at the following link:

http://businesscasestudies.co.uk/parcelforce-worldwide/using-the-marketing-mix-to-drive-change/introduction.html#axzz2YPRzq8SW

Answer the questions below.

What was the key starting point for Parcelforce Worldwide in adjusting the marketing mix?

The key starting point for adjusting the marketing mix for Parcelforce Worldwide was “Time and day guarantee strategy”. it is the one of the strategies that are practised in the marketing mix, taking into account that it helps to ensure that the customers will receive their product with increased value. Parcelforce used the same strategy under which, the company started delivering parcels of lower volume with an increased value of each of the delivery. This strategy not only brought a shift in marketing mix but appeared to be effective as well.

What were the key outcomes of the research conducted in Parcelforce Worldwide's services?

The research on the services of Parcelforce Worldwide highlighted that the company brought a shift in their customer service patterns. They brought a change in the way services are sold. The company started considering some specific parts of the customer services such as timed deliveries, the inclusion of online tracking, dealing with problems quickly and empowered customer communication. It is also found that Parcelforce has brought significant changes in major and minor issues by undergoing a comparative analysis that proved beneficial in the long run.

What changes did Parcelforce Worldwide make to its pricing strategies to meet identified needs and why?

Taking into account the scenarios that were the cause of loss of Parcelforce Worldwide, the company brought significant changes in its pricing strategies. The company used differential pricing, market penetration, price leadership and competitive pricing strategies to meet the identified needs. All these strategies were used to bring a different vision because it was found that the customers were concerned with two things only, time deferent and the price. There are some other pricing strategies that are made into practice over the course of time such as skimming pricing strategy to retain customers and attract more customers.

What changes did Parcelforce Worldwide make to its distribution strategies and why?

Parcelforce made crucial changes to the distribution changes in the form of introducing a proper distribution channel. Side by side the company introduced an online tracking system that can help to locate the product while transferring so that customers can be attracted and they can be taken into confidence. Moreover, the company pays significant attention to on-time delivery so that the distribution channel can be oriented. It is also added that Parcelforce brought significant changes to the way that was used to deliver services and it changed the complete scenario because the strategies that were used later were different from the traditional approach.

What promotional strategies is Parcelforce Worldwide using to meet identified needs? How does the company decide on which promotional activities give the best return on investment?

Parcel force has used some promotional strategies for meeting the identified needs. These promotion strategies are above the line and below the line. Above the line, promotion strategy includes a direct payment for advertising by using inline media such as radio, newspaper television and internet. Another promotional strategy that was used by the company was below the line in which direct email, sales promotion and email marketing were used for the promotion. The company identified the best return by analysing the other competitors who are growing well in the industry.

Describe one further change that Parcelforce Worldwide could make to any aspect of the marketing mix.

Another change that Parcel force worldwide can use is “promotional strategies” because with the passage of time, customers are more towards online sources and media that can provide information regarding service and those services are chosen which have a greater public review ratio. As a result of this change, there would be a change in the target population as well who will be facilitated by the service because today millennials are the major consumers of social media so there would be adversity in the consumer ratio. So, the company needs to bring a change in promotional activities and avenues.

What do you think was a key success factor for Parcelforce Worldwide in adjusting its marketing mix?

I think the most basic and key factor for the success of Parcelforce Worldwide is the balance between marketing mix and using it effectively. Both, success and demolition of a business is highly dependent on the strategies of market mix. In the case of Parcelforce Worldwide, adequate and analytical approach to the marketing mix, i.e. product, pricing, placing and promotion has brought a dramatic shift in the company, leading it to success.

Reference

http://businesscasestudies.co.uk/parcelforce-worldwide/using-the-marketing-mix-to-drive-change/introduction.html#axzz2YPRzq8SW

Assessment Task 4 Checklist

Student’s name:

Did the student provide a sufficient and clear answer that addresses the suggested answer for the following?

Completed successfully

Comments

Yes

No

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Task Outcome:

Satisfactory

Not Satisfactory

Assessor signature

Assessor name

Date

Business Plan For New Super Market

Name of student

Name of institution

Name of instructor

Date

Business plan for a new super market

Marketing plan

Opening a super market requires one to have a good plan that can help him or her to achieve the goals. This is a business plan for a supermarket that will start operating in the near future. The plan will include how the business is expected to be marketed and how product promotion will be done. The plan will also look at the manner in which pricing will be made as well as the marketing strategy that will be used to be able to win many clients.

Marketing strategy-sales and distribution

To market get the products to the premises of the business, the company will have to start by using the services of movers who have been in the industry for long. They know how to handle different goods and their services will be an important of the business as it will ensure that the goods reach the company. Since the supermarket will be inside the university, it will be important that the supplier be people who come from around. Majority of the sales will be made to the students since they are the major target market.

After some time, the company will have to come up with strategies of ensuring that they get better supply strategies. The company will have to buy a van that will be used to supply the products to those who buy the good in bulk. The supply will just follow the general supply chain that is always used by many companies. Making such sales can be a problem if the company does not come up with a long term solutions.

Pricing

Another important aspect that has to be considered by any company that wishes to start operations is pricing. The prices charged on the goods will determine whether clients will love the company or not. The first strategy that will be used is to look at the retail prices around. In case the company comes up with prices that are way above what the competitors charge their clients, the clients will not be willing to purchase the products from the supermarket. One of the best ways that has been noticed by the management is to come up with a strategy that puts the prices slightly below that of the other retail shops in the region. Clients are always attracted to businesses that charge less than the others in the industry. To achieve this, prices in the supermarket will be slightly lower than that of the other retail shops so that clients can go ahead and buy from the supermarket. The prices will be adjusted once the clients have known the supermarket and are already used to purchasing from it.

Advertising and promotion

Advertisement and promotion form a major part of making the business famous. The only way that the supermarket will be able to get clients is when advertisements are done. The promotion will not only be done on the products but also in the region around the university. For the students in the university, it will be easy because posters will be put in the university to inform them of the opening of the supermarket. Since there is no such business within the university premises, it is likely that majority of them will love the idea and will be willing to buy goods from the university. For the others, the supermarket management will organize a caravan that will aim at informing the public of the opening of a supermarket with better prices for them. Reduced prices will be a good marketing tool since it has already been discussed as marketing tool that will attract many clients.

Harvest strategy

Once the supermarket has carried promotion and many clients already know about the goods and their prices, it will also be important to come up with a harvest strategy. The harvest strategy will help the company to get more clients and also increase the money that they make from the whole process.

Continuity of business strategy

It is expected that during the first days, clients will flock the supermarket and after some days they might reduce in number. It will be important to come up with a strategy that the clients are retained and that the income keeps going up. The first way that will be used to retain the clients is by coming up with after-sales services that will make the clients eager to shop in the supermarket. Once the supermarket becomes stable, they will start by offering free transportation to the clients. This is a step that is likely to increase the number of clients who visit the supermarket to do their shopping. Most people love places where they are always sure to get other services apart from what they have paid for. Another way that will be used by the supermarket to retain the clients is by coming up with smart cards that give the clients points any time they shop in the supermarket. Every client will be interested to shop in the supermarket so that they get enough points to be able to redeem so that they get free gifts. The supermarket will come up with a way of including the prices of the gifts in the prices of other commodities so that no losses are incurred in the process.

The supermarket also has plans of coming up with other branches in future. The branches will be managed from the head office. The supermarket will also franchise in future. Once the name of the supermarket becomes very popular, they will allow other upcoming supermarkets to use the name. This will not only make it famous in other regions but will also increase the number of clients. To continue the business well, another long term goal of supermarket is to come up with a strategy of diversifying the products and services that they offer to their clients. It is the only way that the company will survive even when the other businesses that it runs go down.

Identity successor

The success of the business will also require that an identity be made. The name of the company will play a huge role in making the company to be very famous. The name of the company is one of the things that any person that needs to start a business must put into consideration. The success of the business has always determined the extent to which people will get familiar with the business. The name of the supermarket should be something that people can relate with in daily life. Apart from franchising, the supermarket will also have to use its identity to get into other sectors. The best way that companies have been able to ensure that they remain successful is by ensuring that they use their names to do other businesses.

The success of the supermarket will also depend on the things that will happen between the time it is opened and when business will start picking up. The best businesses are those that maintain the same standards that they started with. The supermarket will continue to come up with other things that can bring profit to the company. These will include service provisions that can bring more profit to the company. Enlargement of the company is something that will lead to better days ahead for the supermarket.

Capstone Research Project

The new product development process

[Name of the Writer]

[Name of the Institution]

Capstone Research Project

Introduction

New product development (NPD) process is usually addressed by scientific literature. The process of innovation influencing the process of NPD to create market demand, to bring the exceptional value of the product into the market. However, successful product creation is not a very easy project. An organization should properly research the demand and importance of introducing a new product into the market. Development of these products is a long term process and companies face many problems while developing these products. It is not necessary that a company will definitely get a return after completing the whole process. By using present literature, the main purpose of the study is to use a marketing strategy for the formulation of the NDP process. Research shows that the commercialization process and innovation process of research are inter-related and comparison should be made between the relationship of innovation and commercialization process. The NPD process includes the innovation of the product design to the introduction of a product into the market (Zemlickiene & Maditinos 2012). This research will find the relationship between NDP innovation process and commercialization, many sources are linked with innovation and commercialization process.

Discussion

Survey of the Marketing Environment

Successful creation of the latest product in the market is not an easy task. It is a long term problematic process which requires huge capital and a lot of time. It is not necessary that the NPD process always gives profit to the organization, it may also create a heavy loss for the organization. Companies give 46% of their resources on NPD introduction in the market, which may be wasted on the development of an unsuccessful product (Cooper, 2006). Before commercialization, 60% of all NPDs have been stopped and 40% of products excluded from the market. The main problem of the failure of any product in the market is a lack of marketing strategies (Allen, 2003). The research shows that companies should concentrate on the formulation of marketing strategies for the NDP process. In NPD process proactive consideration of the customer is a developed marketing strategy, which may require to choose suitable market segments that have to be targeted, establish cost targets to meet objectives of price, find out partners who may play important role in value creation. Moreover, it conveys the customer's voice to the firm. In the NPD process, marketing solution has proved important in previous scientific research. For new product development, the success key factors research and development (R&D) integration with marketing has identified by Ernst et al. (2010). To meet the marketing environment it is necessary that product design should be one of the best design in the market (Beckman 2008). A better design does not only help an organization to achieve profits but organization image is also connected with it (Hsu 2011). In the NPD process, it is better to analyze the present research in this field and generalize it.

Transforming Data into Useful Information

After the evaluation of the work connected to the innovative new process of product development, it became obvious that research commercialization method and innovative process are interlinked and the common feature is problem-solving. Many difficulties have been faced during analyzing this process, So it is essential to analyze the literature to make more clarity to describe limits of the process that will address the problems of research proposals and formulation of marketing strategy. The most essential thing to achieve this goal is to match the NPD, commercialization and innovation processes with scientific concept and processes.

According to the research conducted by Ph. Kotler (2003), NPD is the creation of a new brand, existing product modification and improvement and creation of the new product, with the help of effort of the organization's scientific research department. The company can develop a new product in two ways, First way is to make some other company’s product or the second way is to purchase another company or take the patent license. Profit-seeking companies to develop improved and new products or processes utilizes science and technology by industrial research and development (R&D). An essential part of Research and development (R&D) is NPD, which can be appreciated as an activity to improve company future success and gain competitive advantage, for example, market share and profitability. Based on trust and hope that evident profit will be greater than spending money on R&D (Suomala & Jokioinen 2003).

According to researchers, AMR research (Product development and Management Association), studies of Booz-Allen Hamilton identify that Stage gate system and its modifications are used by up to 75-80% of US product creators. Most of the leading companies use NPD tool and Stage gate process created by R. G Cooper. Stage-Gate system was developed by Cooper &Edgett (2010) in 1980 which is widely used in new product development. For analyzing of developed products for a successful experience and successful project, Stage-Gate System was developed. Stage Gate System of Cooper was an operational and conceptual road map innovative idea for new product development Management decision gate separated the Stage-Gate into different stages separated by a management decision gate. Related cross-functional activities are successfully completed by the cross-functional team. If we move to the next stage of the product development stage it is necessary to take management approval.

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Launch validation and testingdevelopment

(Fig 1)Cooper’s five stages of new product development

Cooper (2013) research shows five key stages for new product development including (0) discovery: To create new product ideas and discovered opportunities to design (1) scoping (2) build the business case (3) plan development (4) validation and testing (5) launch the project. Cooper's discovery-stage define technology development process which includes scoping, technical assessment, Complete investigation stage, moreover, following stages are found as NPD stage.

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492442530035500 The strategy of new product Search idea Idea selectionConception creation

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Trial marketing Preparation of product

(Fig 2 ) Ph. Kotler Nine stage product development process

Ph. Kotler (2003) studies describes nine stages of product development which includes (1) new product strategy; (2) search of ideas; (3) selection of ideas; (4) creation of conception and check; (5) marketing strategy; (6) analysis of business; (7) product creation; (8) marketing trial; (9) preparation of product. Many organizations usually applied NPD sequential approach and strictly follow the stages from product development plan to competing with the product on the market. However, product development sequential method application is used, specific product development is performed by every department of the company to transfer accomplished work to organizations another department which executes the next step. Product development method in a sequence has its advantages, it will support to impose order and control high risk in difficult projects of new product development, but it takes a long time of product development by using those methods.

Integrating Results Across Business Functions

The entire process of product development may be slow down or stop when the problem has been solved at some stage of the process. A company should try to make the NPD process shorter and do an effort to bring the product into the market. Many companies are not following the full sequential approach rather they use more flexible and faster ways to get a new product into the market. The parallel methods of product development should choose by the company to or a way of working teams (Kotler 2003). To increase efficiency and save time, departments of the company should closely work together in several stages of the product development process. A team should be created from different department of the company to create a product from start to the end in a short time with good quality. Caurtois (2004) define the Commercialization which means “introducing and presenting the product into the market”. Many sources are used for the marketing of new product into the market which may include Email, SMS, social media advertisement and advertising boards, etc, the organization should use these methods in cost effective manner to introduce a new product into the market.

Process of innovation has many types which include innovation of product, process innovation, the innovation of marketing and organizational innovation. NDP process and innovation process are identical, that is product innovation can be compared with product development. Commercialization theory is sometimes used to explain the invention development process which is finished with the agreement of invention assignment, the establishment of spin-out or licensing of the company. In the NPD process analysis, the research limit should set that the process should be started from the initial design phase and ends up with the introduction of the product into the market. In the new product development, process marketing solution is very essential, which has been proved from previous scientific research. In the new product development process latest, scientific research was generalized and analyzed for new product process marketing decision to contribute to the research in this area.

Ethics in Decision Making

In the long run, it is believed that a business they are running by the organization is granted by the consumer they serve. Moreover, it is ethical if an organization contributes to the society in which it is maximizing its profit potential. A question may arise “How do consumer understand the contribution of an organization in the society? and if customers are not capable to make a clear difference between products with or without any inherent physical, social and moral harm, then why should seller? The consumer always wants to purchase socially acceptable, pleasing and safe products. Moreover, sometime they may not be communicated with the true nature of the product (Jones & Middleton 2007).

Example

Any company, if sell its product, it is necessary that they should take care that harmful material which may be excreted after product development which may harm the society.

In purchase decision, it is questionable that as compared to ancestors, today people are more cultured while product purchase decision. Research shows that now people have more knowledge about the offering of the product as compared to the predecessors.

It is very usual that the concern of America with social responsibility will continue to make both opportunities and problems in targeting marketers sensitive groups having controversial products and services (Jones & Middleton 2007).

Conclusion

Research suggests that in the process of new product development, it is essential to make a proper marketing strategy to save any product market failed. It is not important to follow strictly the NPD process, to save money with the better cost-effective quality of a product can be produced by making a flexible strategy of marketing for the latest product development. The integration between marketing and R&D affect efficiency among various types of project. Moreover, The effect of the relationship between R&D and marketing depends on the product innovativeness degree and process stage. Research shows that the integration among manufacturing and R&D show a strong positive effect on efficiency in the time of development phase. For medical NPD projects, the relationship between manufacturing and marketing shows an insignificant relationship. Overall, the positive impact of the relationship among these departments emerges on usefulness in the commercialization phase (Zemlickiene&Maditinos 2012).

References

Allen, K. R. (2003). Bringing new technology to market. Pearson College Division.

Cooper, R. G. 2006. Managing technology development projects, Research Technology Management 12(1): 31–45.

Caurtois, B. A. 2004. Commercialization, Information Technology Association of Canada, May 2004, p1. Available from Internet.

Ernst, H., Hoyer, W. D., &Rübsaamen, C. (2010). Sales, marketing, and research-and-development cooperation across new product development stages: implications for success. Journal of Marketing, 74(5), 80-92.

Hsu, Y. (2011). Design innovation and marketing strategy in successful product competition. Journal of Business & Industrial Marketing, 26(4), 223-236.

Jones, J. L., & Middleton, K. L. (2007). Ethical decision-making by consumers: The roles of product harm and consumer vulnerability. Journal of Business Ethics, 70(3), 247-264..

Suomala, P., &Jokioinen, I. (2003). The patterns of success in product development: a case study. European journal of innovation management, 6(4), 213-227.

Zemlickiene, V., &Maditinos, D. (2012). Marketing strategy formulation for innovative product development process. Business: Theory and practice, 13, 365.

Case 1: Art With Impact

Case 1: Art with Impact

Student’s Name

Institution

Date

Case 1: Art with Impact

Issues

The current problem being faced by Art with Impact is the managerial and strategic problem, which must be addressed tactfully for the progress of the organization. How can Art with Impact properly identify the problem it faces for immediately and appropriate solution. Art with Impact cannot influence the external factor in its favor and therefore, they severely affect the operations of the organization.

Analysis

The Art With impact Non Profit Fund raising needs to understand its external environment for it to understand factors which control the business. It should understand and influence the political, policy making, taxation and also get the government support. The political factors have direct and indirect impact in the organization. In the case of Art with Impact, the political factors are essential for the influence of donor funding and other function which the organization undertake. Understanding the political and other factors will allow the top management to develop a detailed strategy which they can used to spearhead the organization. It is pointed that it does not effective management strategy and therefore, proper understanding of these factors would be the greatest asset to the future of the organization.

It would also be important for the organization to have vivid and detailed PESTEL, SWOT and PEST Analysis of the organization. These factors help an organization to understand the economic, political, social, environmental issues which determine the successful operations of the organization. The analysis established that some of the economic issues which need to be addressed are inflation, Growth Domestic Product and employment rate of the country. Understanding these factors will ensure that the organization can have proper economic plan and therefore, can help in growth of the company. The policy makers can easily intervene for the success of the organization and therefore, it should start working together with various policy makers in the country for the success of the organization.

Case 8

Case Study #8, Five Guys

Issues

Should five guys use social media as the only marketing tool, especially for new markets?

Is publicity a vital marketing tool for five guys?

How effective did Five Guys use CRM to expand its business?

Analysis

1.Currently, five guys are planning to invade new markets in different countries. However, the company seems to be in a dilemma whether they should do a promotional mix or stick to their social media promotional strategy. Connecting with customers is always easy if you are using social media. Many people in recent times have access to smartphones, if not an iPad or iPhone. Moreover, you promote your brand effectively when using social media. However, you will always leave a market gap whenever you choose to use social media as the only marketing tool.

2. Five guys are known to use publicity as a marketing tool. However, it still difficult to assess how vital this tool has been to the company. Because the company has been associated with both negative publicity and positive publicity as well. Positive publicity helps to create a brand name; it also makes your products known in markets you have not yet ventured. However, every company should make sure that it maintains positive publicity. Negative publicity can as well make you lose customers as it also destroys your brand name.

3. CRM refers to customer relationship management. It involves all the strategies used by a company to attract and retain the company. CRM attracts more customers, which translates to more revenue for the company. However, CRM tends to be costly and can significantly influence business culture. Five guys are known to produce high quality products to attract customers and use various social media practices to retain customers.

Recommendation

Five guys should consider using a promotional mix rather than using social media only, especially in new markets. When using the promotional mix, the company will be in a position to attract many customers in new markets

Besides, the company should ensure positive publicity always. They should avoid loopholes, where negative publicity is created.

The company should come up with proper CRM strategies and systems no matter the cost, especially when planning to venture into new markets.

Case Student

Circle of Satisfaction

[Author Name(s), First M. Last, Omit Titles and Degrees]

[Institutional Affiliation(s)]

Circle of Satisfaction

Customer Satisfaction is a measure of how products and services offered by a company meet or exceed consumer expectation. It is important because it directly influences the health of the business. Customers will continue their association with a company either by buying their product again or by continuing subscription to their service, only if they are satisfied. Satisfied customers also encourage their family/friends/acquaintances to buy the product/services. It is measured through Customer Satisfaction surveys, analysis of customer behaviour and by several market analysis activities. Its most reliable indicator, however, is customer loyalty (longevity of the customers' association with the company).

Large and medium-sized companies usually have a dedicated customer service department that focuses on after-sale services and the experience of their customers during acquisition. Call centres, service centres, outlets, websites and their chat stations, email response teams and other teams that interact with customers directly/indirectly during and post-acquisition belong to customer service division. Service industries invest heavily in customer retention to achieve customer satisfaction. Many organisations have shifted their focus from customer churn reduction to pro-active retention. They regularly analyse the market and consumer behaviour in order to predict and stop customer churn.

The circle of satisfaction is one of the mega marketing concepts. All the three marketing concepts, buyer decision-making process, total product concepts and the circle of satisfaction make up "the marketing concept" (Fanning, 2019). This concept spins around how customers of a product or a service form expectation and later evaluate the quality, value and satisfaction that a product or a service can offer. After that, customers form attitudes that are the determinants of future actions of the customers regarding purchase; this attitude impacts the brand and product in the long-term. As the buyer decision-making process indicates, there are three time zones in consumer decision, before, during and after the purchase. These zones can also be referred to as stages, first pertaining to pre-purchase behaviour, second to the experience of product and service values while third to post-purchase behaviour. The circle of satisfaction commences in the first time zone when customer anticipates about the product quality. In the second stage, the customer experiences the quality while the circle of satisfaction mainly exists in the third time zone of the buyer's decision-making process, i.e. post-purchase behaviour. At this stage, the customer has consumed the product or service and based on the experience customer is assessing the exchange. After evaluation, an attitude is formed about the product, brand or the company.

The concept of the circle of satisfaction deliberates on how consumer enters in decision-making process, owing to some expectations from the product and how they will react in response to their operations (Fanning, 2019). It also considers the cumulative behaviour of a single customer and considering the collective behaviour of all the customers. Companies are able to get a competitive advantage in the market resulting from the collective satisfaction. Furthermore, this concept of the circle of satisfaction compliments other concepts in the key marketing concept.

The circle of satisfaction consists of various stages; these comprise quality, value, episodic satisfaction, commutative satisfaction, trust, loyalty, competitive edge, high profitability and eventually high organisational satisfaction. Every product has to go through all these steps to achieve customer satisfaction and ultimately, organisational satisfaction. This report seeks to explore Netflix, the online video streaming service through all the stages of a circle of satisfaction.

Company Introduction

Commenced on August 29, 1997, Netflix, Inc. is considered a pioneer in the online video streaming and delivery of TV shows. The company's operations can be divided into three segments comprising domestic DVD, and domestic and international streaming of TV shows. For the revenues from the US domestic market, the company relies on the domestic streaming segment. Contrarily, the international segment is responsible for generating revenues from outside the US via monthly subscriptions. DVD by mail service is another segment of operations pertaining to domestic DVD segment. Netflix Inc. is amid the leading online video streaming service providers alongside Hulu, Amazon Prime and HBO Now. Netflix allows its subscribers unlimited access to TV shows on mobile devices, personal computers and TV. The company had licensed a large amount of content since 2007 when the streaming services were first launched. The content viewers can watch on Netflix ranges from feature films, movies, documentaries and original series to TV shows, for both local and international subscribers. Some of the subsidiaries are Netflix International BV, Netflix Studios, LLC, Netflix KK, Netflix Streaming Services, Inc., Netflix Entretenimento Brasil LTDA.

Netflix has gained immense popularity, and its subscribers belong to almost 190 countries as of the data until December 2016. The access to content also depends on location and time, and it keeps on changing accordingly. The company is always seeking opportunities for expansion in various potential markets and has set an excellent example of a prosperous global corporation. As part of its operations, the company has signed various partnership contracts with a different distribution, marketing and production companies, such as ABC/Disney and Starz, etc. Owing to its excellent performance, the company has shown significant growth in terms of revenues and operations in the past decade.

Stages of Circle of Satisfaction

In order to attain the marketing objective of customer satisfaction with the aim of organisational satisfaction, the first element to be considered in the circle of satisfaction is quality.

Quality

Customers evaluate their level of satisfaction based on the qualities they receive in the product or service. Before making the purchase decision customers try to assess the qualities in the service or product. Prior to the actual purchase, that is the first time zone of the decision-making process; customer perception plays a vital role. Products and services are embedded with many qualities such as emotional qualities, epistemic qualities, spiritual qualities, sensory qualities, functional qualities and social qualities (Fanning, 2019). Quality can be defined as the ability of a product, service, or process to provide the intended value. So basically it understands what the intended value is or in this case, we could say customer needs. A perceived quality need not be directly related to the reality of the situation one is attempting to perceive it needs to be coherent as a mental or perceptual entity. It is perhaps by sheer chance or more likely environmental Darwinism that our senses and perceived qualities that result accurately model reality to a certain degree of fidelity. Quality is something that is estimated, assessed and evaluated by the customer, though provided by the company. Generally, quality can be discussed in terms of three dimensions such as technical quality, functional quality and relationship quality.

Netflix's main product is its video streaming subscription service. Though they have other product offerings (e.g. DVD rental by mail, product placement advertising, brand licensing) most of these are also generally known as services as opposed to goods ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"WVsDaiVF","properties":{"formattedCitation":"(Clark, n.d.)","plainCitation":"(Clark, n.d.)","noteIndex":0},"citationItems":[{"id":1349,"uris":["http://zotero.org/users/local/orkqtrjP/items/3XZVC4I4"],"uri":["http://zotero.org/users/local/orkqtrjP/items/3XZVC4I4"],"itemData":{"id":1349,"type":"webpage","title":"Hulu is the best streaming service for high-quality TV and Netflix is a close second","container-title":"Business Insider","abstract":"Amazon Prime Video has the largest TV library, but Netflix and Hulu have the most \"high quality\" shows, according to an analysis of five services.","URL":"https://www.businessinsider.com/hulu-top-streaming-services-for-high-quality-tv-then-netflix-2019-9","author":[{"family":"Clark","given":"Travis"}],"accessed":{"date-parts":[["2019",10,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Clark, n.d.). The only non-service Netflix products I can think of are its video content that is distributed by 3rd party in China and certain home video products they make themselves. Netflix is one of the most successful online video streaming service and service quality is a predominant factor that determines the success and efficacy of its operations. The services offered by Netflix are characterised by functional qualities such as performance, reliability and durability. The company aims at providing the best quality video and audio services, alongside protecting the privacy and confidential payments data of their subscribers. The business model of the company spins around the epistemic qualities since customers seek to reduce boredom by continuously watching the latest novel shows ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"gV20oa9I","properties":{"formattedCitation":"(Oat, 2013)","plainCitation":"(Oat, 2013)","noteIndex":0},"citationItems":[{"id":1352,"uris":["http://zotero.org/users/local/orkqtrjP/items/NDSDQDG7"],"uri":["http://zotero.org/users/local/orkqtrjP/items/NDSDQDG7"],"itemData":{"id":1352,"type":"paper-conference","title":"Analysis of Netflix architecture and business model","container-title":"Seminar on Internet Working","author":[{"family":"Oat","given":"Elena"}],"issued":{"date-parts":[["2013"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Oat, 2013). Studies report that Netflix offers the most high-quality shows according to Business Insider based on customer ratings of the top five video streaming services. The company continuously commits to offering quality in the products and services.

Value

Value can be defined as the ratio of total cost and total benefits obtained from the consumption of a product or a service. When benefits outweigh the cost, the value of a product or service is considered worthy. Companies are the providers of value, while the customers are the judges of value. 'Value' is a subjective term, which may mean price or benefits or worthiness. A customer may pay the exact price, printed on the price tag. Apart from the cost, there are certain terms like time, energy, effort, travel, inconvenience, standing in a queue, etc., to be considered. Some customers focus on the honesty, integrity, trust, sustainability, ethics and morals of a company while buying a product. Similarly, the quality of the product, services, brand image, etc., have to be taken into account while measuring customer value. Value is subjective, and it is associated with wealth.

Netflix is aimed at creating value for its customers in many ways. First of all, the experiences of the content shared on Netflix is tailored to the interests and needs of different customer segments ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"fSZmdSNC","properties":{"formattedCitation":"(Buckle, n.d.)","plainCitation":"(Buckle, n.d.)","noteIndex":0},"citationItems":[{"id":1343,"uris":["http://zotero.org/users/local/orkqtrjP/items/TPAKAE9E"],"uri":["http://zotero.org/users/local/orkqtrjP/items/TPAKAE9E"],"itemData":{"id":1343,"type":"webpage","title":"The Relentless Pursuit of the Perfect Customer Experience: A Netflix Story","container-title":"Business 2 Community","abstract":"What can we learn from Netflix’s attention to customer experience? Against the odds, Netflix has achieved an astonishing rise. How…","URL":"https://www.business2community.com/customer-experience/the-relentless-pursuit-of-the-perfect-customer-experience-a-netflix-story-02240302","title-short":"The Relentless Pursuit of the Perfect Customer Experience","author":[{"family":"Buckle","given":"Harry"}],"accessed":{"date-parts":[["2019",10,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Buckle, n.d.). It offers the viewers to choose from different narratives and in this way, offers a unique experience to each customer. In the example of Black Mirror: Bandersnatch, viewers can experience a sense of power and control. The increasing experience of users also enhances their ability to perform different tasks. Consumers are allowed to take charge and choose how the story unfolds; the decision making power is given to the consumers. The business model adopted by Netflix is based on joint profitability; value to both the company and customers. Netflix utilises the unique interactive experience and hence, by means of customer participation and engagement, the veiled needs of consumers are discovered. Based on the data obtained, the creative potential of consumers is utilised to develop new products and services ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"4yhWy4eh","properties":{"formattedCitation":"(Bell & Koren, 2007)","plainCitation":"(Bell & Koren, 2007)","noteIndex":0},"citationItems":[{"id":1353,"uris":["http://zotero.org/users/local/orkqtrjP/items/Q9MZMVMN"],"uri":["http://zotero.org/users/local/orkqtrjP/items/Q9MZMVMN"],"itemData":{"id":1353,"type":"article-journal","title":"Lessons from the Netflix prize challenge.","container-title":"SiGKDD Explorations","page":"75-79","volume":"9","issue":"2","author":[{"family":"Bell","given":"Robert M."},{"family":"Koren","given":"Yehuda"}],"issued":{"date-parts":[["2007"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Bell & Koren, 2007). What is more outstanding in the case of Netflix is that it creates the "illusion of free choice" yet guiding the customers through several predefined choices. Customers, on the other hand, feel that that they have given a choice and have full control on the way they experience the content. In this way, customer engagement increases and eventually, Netflix offers them more content relevant to their needs and preferences. Hence, by way of active participation, Netflix, together with their customers, create superior personalised value for them that rewards to the company as well in return.

Satisfaction

When customers receive something beyond their expectations, value higher than what they anticipated, they are highly satisfied. On the other hand, if the customer receives something below their expectations, that are dissatisfied. When it comes to measuring satisfaction, customers are not able to distinguish between the types of satisfaction. Episodic satisfaction is referred to the satisfaction gained after one episodic transaction with the product, service or a brand.On the other hand, after the multiple episodes of transactions, the satisfaction consumer can calculate is total or Cumulative Satisfaction. It is sometimes also referred to as collective satisfaction. Next comes the aggregate satisfaction, where there are multiple total products, considered as single customer experience in his or her mind.

Netflix Inc.'s performance makes it an ultimate example of a company that disrupted the industry through exceptional customer experience. According to the statistics of 2016, Netflix reported about 75 million subscribers worldwide. The rise of this entertainment program is witnessed globally and is regarded as a tale of disruption. Netflix is regarded as a corporation obsessed with customer satisfaction. On such an approach is to provide personalised customer experience and allows its subscribers whittle down many choices through website personalisation. The company has developed algorithms to serve up customer artwork that allows its subscribers to watch the content that caters to their needs and taste ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"12gpMy3I","properties":{"formattedCitation":"(Hallinan & Striphas, 2016)","plainCitation":"(Hallinan & Striphas, 2016)","noteIndex":0},"citationItems":[{"id":1351,"uris":["http://zotero.org/users/local/orkqtrjP/items/7B56TRY7"],"uri":["http://zotero.org/users/local/orkqtrjP/items/7B56TRY7"],"itemData":{"id":1351,"type":"article-journal","title":"Recommended for you: The Netflix Prize and the production of algorithmic culture","container-title":"New media & society","page":"117-137","volume":"18","issue":"1","author":[{"family":"Hallinan","given":"Blake"},{"family":"Striphas","given":"Ted"}],"issued":{"date-parts":[["2016"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Hallinan & Striphas, 2016). With the Netflix app, Netflix can gather so much more information about each user, what movies they like, they don’t like, which movies they finish or stop short or skip through, what kind of movies do they watch over and over, what time of day do they watch movies and what days during the week, how their tastes change over time and as they grow older, etc. This data is powerful and valuable, it not only drives how the Netflix app works, but also what Netflix’ catalogue of shows/movies looks like and it now also drives the type of movies and shows that Netflix itself produces ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"R5ZJyjIA","properties":{"formattedCitation":"(Xu, Frankwick, & Ramirez, 2016)","plainCitation":"(Xu, Frankwick, & Ramirez, 2016)","noteIndex":0},"citationItems":[{"id":1342,"uris":["http://zotero.org/users/local/orkqtrjP/items/5H35LQEN"],"uri":["http://zotero.org/users/local/orkqtrjP/items/5H35LQEN"],"itemData":{"id":1342,"type":"article-journal","title":"Effects of big data analytics and traditional marketing analytics on new product success: A knowledge fusion perspective","container-title":"Journal of Business Research","page":"1562-1566","volume":"69","issue":"5","author":[{"family":"Xu","given":"Zhenning"},{"family":"Frankwick","given":"Gary L."},{"family":"Ramirez","given":"Edward"}],"issued":{"date-parts":[["2016"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Xu, Frankwick, & Ramirez, 2016).

In addition, customer engagement is the key to keep customers satisfied and retained. This is the reason for which a subscription company lives or dies. The recommendation system based on the customer data recommended shows and personalised landing cards creates an ultimate mechanism for choosing the shows. One more factor that is regarded as the major contributor to the excellent customer experience is responding to customers’ feedbacks. Customer insight is best utilised and shared across different teams in an organisation. The more people having data on customer insight, the higher is the likelihood of solutions and programs tailoring to customer needs.

Trust

After the multiple episodes of customer satisfaction, referred to as cumulative satisfaction, customers form an attitude towards the product. They generally come to the conclusion that they can trust a company or a brand. Having trust in a brand means that the customer is sure about he or she will be provided with the best every time they will interact with the company (Fanning, 2019). Customer trust is linked with the brand through a product or a service. Building customer trust can result in many benefits for the company; monetary benefits include high sales, revenue and long-term value of the business. Non-monetary benefits include high customer satisfaction, positive word of mouth and long-term value ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"Ijq7oHMA","properties":{"formattedCitation":"(Macintosh, 2007)","plainCitation":"(Macintosh, 2007)","noteIndex":0},"citationItems":[{"id":1354,"uris":["http://zotero.org/users/local/orkqtrjP/items/9HWFPJ2E"],"uri":["http://zotero.org/users/local/orkqtrjP/items/9HWFPJ2E"],"itemData":{"id":1354,"type":"article-journal","title":"Customer orientation, relationship quality, and relational benefits to the firm","container-title":"Journal of Services Marketing","page":"150-159","volume":"21","issue":"3","author":[{"family":"Macintosh","given":"Gerrard"}],"issued":{"date-parts":[["2007"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Macintosh, 2007).

Building trust in customers is the toughest thing. On top of that, the company do not has that scope always to interact with every customer face-to-face. So, winning their trust and convincing them for sales is a hard job. Establishing trust with their customers is the most important thing they do at Netflix. Customer trust and safety of their personal data is always the priority of the company. To build trust with their customer companies generally, listen to them and understanding what they need to do in order to be successful in their business. Secondly, they also work to understand what problems they are trying to solve and how they will measure success.

Netflix is a customer relationship company that has been successful in strengthening its customer trust and brand loyalty. Netflix understands its customers better than the customers themselves by analysing every customer interaction. The company is a pioneer in building a direct relationship with their customers. Netflix climb from a DVD provider to one of the best video streaming services is stemmed from putting customers at the heart of the company ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"xdDQW3Qa","properties":{"formattedCitation":"(Smith, n.d.)","plainCitation":"(Smith, n.d.)","noteIndex":0},"citationItems":[{"id":1345,"uris":["http://zotero.org/users/local/orkqtrjP/items/KGJRIWJD"],"uri":["http://zotero.org/users/local/orkqtrjP/items/KGJRIWJD"],"itemData":{"id":1345,"type":"webpage","title":"How To Create A Customer-Obsessed Company Like Netflix","container-title":"Forbes","abstract":"What can aspiring customer-centric companies learn from Netflix’s achievements? Can startups compete with the industry goliaths who can afford to put their customer obsessions front and center?","URL":"https://www.forbes.com/sites/anthonysmith/2017/12/12/how-to-create-a-customer-obsessed-company-like-netflix/","language":"en","author":[{"family":"Smith","given":"Anthony"}],"accessed":{"date-parts":[["2019",10,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Smith, n.d.). From day one, the company lives on the philosophy of customer obsession; the culture of prioritising customers is spread across all the functional departments. Owing to having a molecular understanding of their customers, the company has been able to build customer trust. The big data approach company has employed informed this specific path; satisfied customers are the bottom line of the company.

Loyal Behaviour

Customer loyalty is an instrumental objective that leads to customer behaviour generally desired by every company and it is the outcome of customer satisfaction (Bowen & Chen, 2001). Loyalty is also regarded as a service that the customers provides to the company in return for their exceptional services. In an era of tough local competition and aggressive startups, every business wants to get the upper hand over its rivals. Technology and globalisation have been crucial in bridging boundaries amongst businesses today. Some of the ways to build loyalty include, Communicate with your customers. Engaging with clients will give them a sense of community and belonging. Luckily, social media platforms are an easy way to do that. Being consistent with the quality, customers should get the same feeling of satisfaction every time they purchase something from a brand. Here something is worth mentioning; no loyalty cannot be declared as dissatisfaction. Delivering promises whenever the company makes and providing customers with occasional surprises are also great ways to build loyalty. Be it a small gift or a discount; any client will be glad to receive something unexpected. One could occasionally throw such surprises to the most loyal customers (Jeyakumar, 2014).

Moreover, investing in customer service is a great way not only to keep loyal customers but possibly even turn some dissatisfied customers into raving fans. At a minimum, implement omnichannel customer support, respond quickly, and be polite. These are some of the most recommended strategies to build a loyal customer base. The success of Netflix not only lies in getting an increasing number of subscribers but having 805 of loyal customer subscribers. Netflix is said to have loyal subscribers base that gives a competitive advantage to the company over its competitors. According to a study by Recode, Netflix customers do not pay to their video streaming services such as HBO Now and Hulu ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"AI12f13J","properties":{"formattedCitation":"(Molla, 2017)","plainCitation":"(Molla, 2017)","noteIndex":0},"citationItems":[{"id":1347,"uris":["http://zotero.org/users/local/orkqtrjP/items/WTZQTMPV"],"uri":["http://zotero.org/users/local/orkqtrjP/items/WTZQTMPV"],"itemData":{"id":1347,"type":"webpage","title":"Most Netflix customers don’t pay for other streaming services. But Hulu and HBO Now subscribers do.","container-title":"Vox","abstract":"A majority of HBO Now and Hulu subscribers pay for Netflix.","URL":"https://www.vox.com/2017/10/23/16488506/netflix-streaming-services-hbo-hulu-subscribe","language":"en","author":[{"family":"Molla","given":"Rani"}],"issued":{"date-parts":[["2017",10,23]]},"accessed":{"date-parts":[["2019",10,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Molla, 2017). On the other hand, the subscribers of these companies do pay to Netflix, while amid Netflix subscribers, they remain loyal to the company. The customers of other competitive services want to have Netflix as their top choice. Owing to its loyal customer base, the company has been able to increase its rates without losing customers since customers are alacritous to pay higher prices. Every month loyal customers are subjected to new prices, resulting in a high market share of the company. As discussed in the above sections, customer obsession of Netflix has led to high customer satisfaction, high customer trust and eventually, a loyal customer base of millions of subscribers.

Competitive Advantage

The loyal behaviour of customers creates a situation highly desirable for almost all of the companies. The behaviours and actions of loyal customers lead to a competitive advantage for the companies. Generally speaking, competitive advantage refers to the actual or perceived advantage that a competitor has over his competitor for a specific competition, even before both have begun their efforts, due to some inherent qualities. A competitive advantage is a core competence (or combined competencies) an organisation has that differentiates it from the competition and is also relevant to its target audience. It needs to be sustainable; hence, it has to be in-built by the organisation, and cannot be purchased. "Word-of-mouth marketing" is a term used by the layman who is under the misconception that word-of-mouth activity is a method of marketing when, in fact, it is a primary goal of marketing. Many marketing methods are used to generate this result, starting with customer experience at the most basic level. That is a self-generated and inevitable result of making a sale and therefore requires no marketing efforts. Loyal customers spread positive word of mouth about the company, its products and services, and also go for repeat purchases over time. The positive word of mouth results in the most cost-effective marketing of the company and increases the customer base. This results in reduced cost of marketing and business operations increased sales revenue and high business value amid new and existing customers.

Many of the criticisms regarding competitive advantage of the company concerns their business model, characterized by low-cost monthly subscriber charges for a buffet-style video streaming service. Though Netflix takes benefit of being the first-mover in such a business framework, Netflix is somehow familiar with the fact that it is unsustainable if the competition increases from as other more experienced filmmakers. This disruptive business model seems unsustainable, though it was good for the company to gain traction in beginning years.

Many opponents also point to Netflix relatively new strategy to invest seriously in original and exclusive productions as not something that will sustain. They say that most of company’s profits are eaten up by the content. Though they have already increased prices, they cannot compete with Hollywood's Big 6 (who also happens to control the US TV production industry as well) in terms of content for US audiences. As Hollywood's Big 6 (i.e. Disney-Fox, Time Warner's HBO, Hulu) focus on streaming, they can take the US streaming market from Netflix. Though Netflix is spending big money to get big-name Hollywood talent (e.g. ABC's Shonda Rhines, Fox's Ryan Murphy), dependence on Hollywood for content is unsustainable.

The sustainable competitive of the company lies in its global strategy. The company is not yet available in all the countries, but it is planning to do so to produce international content. From live-action series (e.g. Black Mirror, Narcos, 3%) to Japanese Anime to documentaries Netflix is taking benefit its international connections to take on Hollywood. Additionally, Netflix has strengthened its brand in the minds of customer all over the globe, as a good content creator. Filmmakers also consider it a goof buyer of their content for international release. Given their string of efficacious projects, the company actually also elevates the appeal of their original films akin to the HBO or Disney.

The repeat purchases help companies calculate the customer lifetime value, which indicates how profitable or valuable one customer to the company is. The loyal customers who keep coming back and bring new customers to the company are the most profitable customers and offer high lifetime value to the company.

Increased Profitability

The primary source of revenue and profits are the number of subscribers on the company's website. The original content is not that profitable, yet it helps the company in attracting more subscribers. The financial performance of the company reveals that the company is one of the most profitable companies, and its continued success and growth has been witnessed. Some of the indicators of financial performance such as earning per share, stock price, sales revenue, number of subscribers, stakeholders statements reveal positive results about the company’s performance.

The profitability of Netflix arises from its edge over its competitors. Studies and surveys report that streaming content viewers consider Netflix much better than other streaming services. If one in the US, there's no shortage of services, but abroad Netflix tends to be the one and only choice. Prime is getting around as well, but with much less content. In addition, Netflix has the upper hand again in terms of originality of content, though alongside each good show came a load of duds. While Prime invests a lot, Netflix has the experience and pays well-known writers and directors to do good stuff (and every now and then gets a good actor to go along with it). Netflix invests a lot in content for other languages, and often it's great content. "Marseille" is an amazing series (subtitles are good too) and "Rain" might have just discovered some upcoming your stars. Prime has nothing here. Netflix has a lot more to offer which it cannot in some Asian countries due to licensing issues or costs, and that is the reason the subscription costs so much less than what it is in UK or US. Thus, for a movie buff or an individual with a high affinity towards cinematic content, Netflix is perfect.

Netflix is profitable, but looking at profitability alone is not enough in Netflix's case. That's because, for the company to make its subscription revenue model work, it has to pay in advance for a library of streamed content that makes its subscription compelling in the long run. In other words, Netflix it's profitable as the advancement made on content are amortised on the balance sheet and gradually expensed on the income statement on a yearly, basis which makes the company profitable from the accruing standpoint. That doesn't necessarily mean the company is not sustainable. But it poses additional financial risks for the company.

Conclusion

To sum up, Netflix has been the single best entertainment value the streaming customers can have, the customer service reviews reveal. It amazes viewers with the range of options available if you're willing to open yourself to new venues. In addition to a lot of mainstream American / British fare, shows from all over the world that was terrific and eye-opening that can never be viewed easily on regular TV or movie venues. The best thing is It all being available when viewers are available, and inclusive in the price makes it way easier to give it a chance. If one subscribes, they can enjoy all of it, expand their limits and try new things and it will amaze them. The high satisfaction of Netflix customers is analysed through the circle of satisfaction, it deliberates on how the company creates and offers quality to its subscribers, offers the high value that results in customers' satisfaction. Resulting from that, the company is able to build their customers’ trust and loyalty, a desirable situation for every company. This helps Netflix build competitive advantage and retain its position as the most profitable company that stems from organisational satisfaction. The success of a company can be regarded as many factors; Netflix is dominant because of the vast amounts of data it collects on its users. In the "old" way of consuming media, you would rent movies from a store, watch channels through cable or antenna, or watch movies in a theatre. None of these methods of consuming media provides much powerful user data at all, you can measure viewership in sample sizes, poll the audience, tabulate rental statistics and movie ticket sales; but that’s really about it. There's no entertainment company on earth (besides YouTube) that has more powerful data than Netflix, which allows them to fully understand their customers.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Bell, R. M., & Koren, Y. (2007). Lessons from the Netflix prize challenge. SiGKDD Explorations, 9(2), 75–79.

Bowen, J. T., & Chen, S. L. (2001). The relationship between customer loyalty and customer satisfaction. International journal of contemporary hospitality management, 13(5), 213-217.

Buckle, H. (n.d.). The Relentless Pursuit of the Perfect Customer Experience: A Netflix Story. Retrieved October 28, 2019, from Business 2 Community website: https://www.business2community.com/customer-experience/the-relentless-pursuit-of-the-perfect-customer-experience-a-netflix-story-02240302

Clark, T. (n.d.). Hulu is the best streaming service for high-quality TV and Netflix is a close second. Retrieved October 28, 2019, from Business Insider website: https://www.businessinsider.com/hulu-top-streaming-services-for-high-quality-tv-then-netflix-2019-9

Fanning, S. (2019). The marketing concept. themarketingconcept.com.

Hallinan, B., & Striphas, T. (2016). Recommended for you: The Netflix Prize and the production of algorithmic culture. New Media & Society, 18(1), 117–137.

Jeyakumar, N. (2014). Netflix-Loyal Customer Base.

Macintosh, G. (2007). Customer orientation, relationship quality, and relational benefits to the firm. Journal of Services Marketing, 21(3), 150–159.

Molla, R. (2017, October 23). Most Netflix customers don’t pay for other streaming services. But Hulu and HBO Now subscribers do. Retrieved October 28, 2019, from Vox website: https://www.vox.com/2017/10/23/16488506/netflix-streaming-services-hbo-hulu-subscribe

Oat, E. (2013). Analysis of Netflix architecture and business model. Seminar on Internet Working.

Smith, A. (n.d.). How To Create A Customer-Obsessed Company Like Netflix. Retrieved October 28, 2019, from Forbes website: https://www.forbes.com/sites/anthonysmith/2017/12/12/how-to-create-a-customer-obsessed-company-like-netflix/

Xu, Z., Frankwick, G. L., & Ramirez, E. (2016). Effects of big data analytics and traditional marketing analytics on new product success: A knowledge fusion perspective. Journal of Business Research, 69(5), 1562–1566.

Case Study

Case Study

Tafari Dancy

[Institutional Affiliation(s)]

Author Note

[Include any grant/funding information and a complete correspondence address.]

Case Study

Cholula hot sauce has gained popularity with the help of its marketing strategies using social media platforms, and word-of-mouth program. This has successfully managed to compete and grow its overall market and share its profits in the United States hot sauce market. Based on the profitability analysis by using Porter’s Five Forces that include industrial competitors, new market entrants, suppliers, substitutes, and the bargaining power of the buyers this paper will be analyzing the challenges. This paper will also include a discussion about the factors involved in the effectiveness of Cholula.

Porter’s Five Forces

Competitors

When it comes to the business, it is a well-known fact that there will be competitors too. Hot sauce industry is based on the different segments of the market that includes condiments, retailers and all of the sauces. Companies are responsible for the distribution, manufacturing, and production purposes ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"4V90ZJuw","properties":{"formattedCitation":"(Lima\\uc0\\u324{}ski et al., 2018)","plainCitation":"(Limański et al., 2018)","noteIndex":0},"citationItems":[{"id":1730,"uris":["http://zotero.org/users/local/F0XOCTdk/items/YDAC886B"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/YDAC886B"],"itemData":{"id":1730,"type":"article-journal","title":"Marketing information system and risk reduction in managing a company on foreign markets","author":[{"family":"Limański","given":"Andrzej"},{"family":"Popławska","given":"Żanna"},{"family":"Drabik","given":"Ireneusz"}],"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Limański et al., 2018).

Substitutes

The global market is not limited to only one and there are the other sauces that are introduced in the market. Cholula with its quality and refined sauces has been competing with the other sauces with the help of its effective marketing. It can be said that marketing strategies are the main factors for better performances by Cholula.

Competitors in the market

The market is not limited to a single company or a brand, there is a huge number of brands and production companies ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"G4ijBLuW","properties":{"formattedCitation":"(Bruijl, 2018)","plainCitation":"(Bruijl, 2018)","noteIndex":0},"citationItems":[{"id":1786,"uris":["http://zotero.org/users/local/F0XOCTdk/items/FCTFGG5Z"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/FCTFGG5Z"],"itemData":{"id":1786,"type":"article-journal","title":"The Relevance of Porter's Five Forces in Today's Innovative and Changing Business Environment","container-title":"SSRN Electronic Journal","source":"ResearchGate","DOI":"10.2139/ssrn.3192207","journalAbbreviation":"SSRN Electronic Journal","author":[{"family":"Bruijl","given":"Gerard"}],"issued":{"date-parts":[["2018",1,1]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Bruijl, 2018). In the case of Cholula, based on my analysis, I believe that there are no such competitors in the market because of the huge success of Cholula.

Bargaining power of Suppliers

Suppliers are the sources to supply the products in the market. The bargaining power of the suppliers in the market determines the price patterns. The bargaining power of Cholula suppliers is one of the sources to determine and set a pricing strategy in the market. This also includes the number of suppliers of the sauces in the market.

Bargaining power of the buyers

Any product that is introduced to the market is consumed by the customers. The bargaining power of the buyers of Cholula includes the total number of the customers, pricing strategies, and willingness to pay for the product of Cholula.

Assessment

This part of the paper discusses the assessment of the Cholula market that is based on the different market segments, demographics, competition, needs of the costumers, and targeted market. Demography and segmentation of Cholula are based on Latin Americans, millennials, and Asians living in the United States. These are also based on age distribution such as millennials. This provides an advantageous competition to the other market segments and offers attract new customers including Millennials.

Cholula is demanded by a huge number of indigenous people, and this is the segment on which Cholula wants to focus ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"qLaNNuf6","properties":{"formattedCitation":"(Ferdman, n.d.)","plainCitation":"(Ferdman, n.d.)","noteIndex":0},"citationItems":[{"id":1784,"uris":["http://zotero.org/users/local/F0XOCTdk/items/SM9SUTVG"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/SM9SUTVG"],"itemData":{"id":1784,"type":"webpage","title":"The American hot sauce craze in one mouth-watering chart","container-title":"Quartz","URL":"https://qz.com/171500/the-american-hot-sauce-craze-in-one-mouth-watering-chart/","language":"en","author":[{"family":"Ferdman","given":"Roberto A."}],"accessed":{"date-parts":[["2020",1,27]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Ferdman, 2014.). To attract many customers in the market, Cholula has to introduce new and quality products so that they may be able to experience and buy its products. In the market, some of the products may be observed including ketchup, Mayonnaises, BBQ sauce, and mustard. These products can be considered as the competitor for Cholula whereas, after the year 2000, this has gained a market place by competing with the other market segments and competitors ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"ZnCbQiWU","properties":{"formattedCitation":"(SEGRAN, 2015)","plainCitation":"(SEGRAN, 2015)","noteIndex":0},"citationItems":[{"id":1789,"uris":["http://zotero.org/users/local/F0XOCTdk/items/VB6FKUQL"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/VB6FKUQL"],"itemData":{"id":1789,"type":"webpage","title":"Hot Sauce, USA","URL":"https://www.fastcompany.com/3050328/hot-sauce-usa?cid=search","author":[{"family":"SEGRAN","given":"ELIZABETH"}],"issued":{"date-parts":[["2015"]]},"accessed":{"date-parts":[["2020",1,27]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (SEGRAN, 2015). Market sizing is more important for the sustainability of the company and business on the global business level ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"clAwBEW0","properties":{"formattedCitation":"(Aaker & Moorman, 2017)","plainCitation":"(Aaker & Moorman, 2017)","noteIndex":0},"citationItems":[{"id":1796,"uris":["http://zotero.org/users/local/F0XOCTdk/items/XII2CU3B"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/XII2CU3B"],"itemData":{"id":1796,"type":"book","title":"Strategic Market Management","publisher":"Wiley","URL":"https://books.google.com.pk/books?id=FwxDDwAAQBAJ","ISBN":"978-1-119-39221-7","author":[{"family":"Aaker","given":"D. A."},{"family":"Moorman","given":"C."}],"issued":{"date-parts":[["2017"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Aaker & Moorman, 2017). This will help Cholula to determine the main potentials in the market and major market competitors that may be a threat to them. Market sizing for Cholula includes the profile of the targeted customers. Outside sources may include the customers and new market places that may be helpful to grow the business and market of sauces.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Aaker, D. A., & Moorman, C. (2017). Strategic Market Management. Wiley. https://books.google.com.pk/books?id=FwxDDwAAQBAJ

Bruijl, G. (2018). The Relevance of Porter’s Five Forces in Today’s Innovative and Changing Business Environment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3192207

Ferdman, R. A. (n.d.). The American hot sauce craze in one mouth-watering chart. Quartz. Retrieved January 27, 2020, from https://qz.com/171500/the-american-hot-sauce-craze-in-one-mouth-watering-chart/

Limański, A., Popławska, Ż., & Drabik, I. (2018). Marketing information system and risk reduction in managing a company on foreign markets.

SEGRAN, E. (2015). Hot Sauce, USA. https://www.fastcompany.com/3050328/hot-sauce-usa?cid=search

Case Study Red Bull

Your Name

Title of Submission

Date

M-commerce (mobile commerce), p 535.

Mobile phones and hand-held devices based on the modern technologies are very common these days. The modern consumer in this era of technological advancement wants to obtain maximum benefit out of that. Business experts are incorporating these mobile technologies into business marketing and selling. One form of this is m-commerce or mobile commerce. M-commerce is the use of hand-held devices to conduct transactions via different networks (Balasubraman, Peterson, R. A., & Jarvenpaa, 2002). It is like e-commerce which does not need the buyers to drive to a retail store or do not need a desktop computer to do shopping from their favorite e-commerce platforms. M-commerce is not just about shopping via a mobile device but it also includes in-app purchasing, mobile banking and marketplace applications such as the whole marketplace in mobile applications and mobile payment applications such as Samsung and Apple pay. M-commerce is the increasing subset of e-commerce technology, a model primarily based on conducting business over the internet.

Selective Distribution, p. 524

Companies adopt three different types of distribution strategies. The first strategy is to service every possible outlet and the company's product is made available in all outlets. The second strategy is to provide rights to one dealer for the sale of products in one locality. On the other hand, the third strategy is aimed at selecting the few outlets to make the product available to the users, which is referred to as selective distribution strategy CITATION Dic18 \l 1033 (Dictionary, n.d.). Neither all the outlets are targeted nor is single one targeted to make the product accessible for the customers. The distribution of cars is the most common example of this type of strategy. Clothing brands also use this type of strategy. Samsung Gear 2 is dole in elective outlets is an example of selective distribution adopted by the company. It is the optimal solution between the other two selective strategies. This type of strategy is getting more importance these days and it must be considered by companies to deal with market competition.

References

Balasubraman, S., Peterson, R. A., & Jarvenpaa, S. L. (2002). Exploring the implications of m-commerce for markets and marketing. Journal of the academy of Marketing Science, 30(4), 348-361.

BIBLIOGRAPHY Dictionary, B. (n.d.). selective distribution. Retrieved 4 20, 2018, from Business Dictionary: http://www.businessdictionary.com/definition/selective-distribution.html

Chapter 14 Marketing Application Response Questions

Marketing assignment

Name of student

Name of Teacher

Price Elasticity of Demand, Pg. 442

The price elasticity of demand is the responsive of change in demand to a change in price. In other words we can say that the change in demand with respect to a unit change in price is measured by this concept. The price will be elastic if the change in demand will be more than change in price. If the change in demand is less than change in price, the demand will be inelastic. The implication for the marketers lie in the fact that the differences in the elasticity will mean that the products will react differently to the change in price in terms of revenue. If the price of a product is changed in case of elastic demand, the revenue will move in the opposite direction as the price. In case of inelastic demand, the revenue will move in the same direction as the revenue.

Cross price Elasticity Pg. 445

The cross price elasticity is measured in two ways. Either in the case of substitutes or in the case of compliments. In case of substitutes the figure obtained in the answer would be positive as the price increase in one product will result in the increase of the demand for the other product. Example would be pepsi or coke. In case of compliments, the resultant figure would be negative which means that the increase in the price of one product will result in the decrease in the demand for other. Example is car and petrol.

Answer a)

The price should be set lower than the competitor. This aspect is called the penetration pricing which is done to penetrate in the market. The price will be set initially to attract the customers.

Answer b)

This aspect is related to the elasticity of demand whereby the impact on the revenue of any price change is studied. If the demand is elastic, then the opinion of the roommate is right to maximize the revenues by decreasing the price. If the demand is inelastic, then the other opinion is right to increase the prices to increase revenue. However the increase in revenue will not be much in case of inelastic demand.

Answer c)

1000/40-20

=1000/20

=50 units

1000/60-20

=1000/40

=25

We calculate the breakeven by dividing the costs by contribution margin. The contribution margin is calculated by subtracting the variable costs from sales price. If the priceis $ 40, the company will break even at 50 dogs and if the price is $ 60, the breakeven point will be 25 dogs.

Chapter 16 Marketing Application Response

Marketing Application response

Student’s Name

Institution

Date

Market Application Response

Wal-Mart is the store known for the use of Just in Time Inventory (JIT). The success of Wal-Mart is based on high quality of product and low production cost. As stated by Kennedy (2015) JIT is design to deliver less merchandise product on more frequent basis. It means that the company is able to get the merchandise just in time, for it to able to get another product on line CITATION Sea15 \p 21 \l 1033 (Kennedy, 2015, p. 21). In this case, the store stock product, which clients wants and it is what has made Wal-Mart Supermarket successful. However, the advantages of JIT are it increases the availability of the product in the stores, lower the inventory investment and also reduce the lead time. The disadvantages are the logistic function is more complicated because of more frequent deliveries of products to the stores and customers. It is also more expensive because of transportation and coordination. However, Wal-Mart should continue to use the JIT since, it has produced best result for the company over the years. The customers taste and preferences changes daily and the store can be able to deliver products based on the taste of customers and with Just in time system Wal-Mart is able to stock products needed by customers.

Vertical Marketing System

Vertical marketing system is supply chain method where members act as a unified system. The vertical system include administrated, contractual and corporate. However, Bartoli Pasta uses Contractual vertical marketing system to sale its products. It has entered into agreement with various stores, where its products are stock for customers. Contractual is the agreement which exist between various distributors or stores. It helps a company to have a wider distribution channel and a wider market as well. Krsipy Kreme donuts utilize administrated vertical marketing system in the market. It has an agreement with other firms to sales its products CITATION Ric19 \l 1033 (Richards, 2019). Ralph Lauren uses corporate vertical method for the sale of its products. The company still maintains its brand despite the partnership with other firms for the purpose of selling its products.

References

BIBLIOGRAPHY Kennedy, S. (2015). Vertical Market Systems and Management. Journal of supply chain , 2-34.

Richards, L. (2019). Vertical Marketing Systems Application in supply chain ana management. International Journal of business and supply chain , 14 (4), 12-38.

Chick FIl A

CHICK-FIL-A: MARKETING PRACTICES AT A GLANCE

Student’s name

Institution’s name

CHICK-FIL-A: MARKETING PRACTICES AT A GLANCE

CHICK-FIL-A'S MARKETING STRATEGY

Chick-fil-A follows a substantially differentiated marketing strategy that makes it a unique food chain business throughout the United States. The restaurant has Cathy's Christian in its backdrop, and therefore the underlying motto of Chick-fil-A is to influence people with a positive and constructive manner. The restaurant pivots the practices of giving, and endeavors to infuse creativity in its marketing campaign. Take the instance of the cow who advises people to "Eat Mor Chicken," it is a witty and practical conceptualization, of course. Moreover, to attract a more extensive kids' consumer base, Chick-fil-A adopted the strategy of providing learning and ethical development material to the kids with their meals.

CHICK-FIL-A'S POSITIONING STRATEGY

Chick-fil-A devised a positioning strategy that allows it to proffer premium services at a reasonable price. Chick-fil-A is famous for its excellent customer services, clean and tidy ambiance, and restrooms, delicious tastes, freshly made orders, and all in almost comparable competitive price. The restaurant has a diverse menu that is designed to address the need for both fast food lovers and health-conscious customers, simultaneously. Its exacerbated ethical concerns and proven practices make it eminent as a "do good" restaurant.

IS SUNDAY CLOSING A COMPETITIVE ADVANTAGE FOR CHICK-FIL-A?

Chick-fil-A works all week except Sundays, and the main reason behind its holiday is religious as well as humanity-based. According to the management of Chick-fil-A, they make extensively sufficient profits on weekdays, and therefore employees deserve a day off to have some rest and to perform their religious obligation. In due course, it is also explained that a day off makes the employees fresh and rejuvenated, so the chicken tastes wonderful on Mondays, moreover, as it is mentioned, that the roots of Chick-fil-A are connected with religiousness, and therefore it is believed that in order to abide with faith the business should be closed on Sundays.

SHOULD OTHER RETAILERS CONSIDER CLOSING ON SUNDAY? WHY? WHY NOT?

Closing the restaurants on Sunday does not feature any specific competitive advantages. The idea is practical to allow employees with a breather but otherwise, a day off can cost other businesses a fortune. On the other hand, all the restaurants observe different religions and faith, and therefore it is not necessary for them to close their franchises on Sundays. However, from a humanity standpoint, staff should be provided with a day off so that they could offer more effective services to the customers.

CHICK-FIL-A STRENGTHS

Chick-fil-A is a unique and distinguished fast food restaurant from many perspectives, but the most significant factor that makes it prosper is its 6 Ps strategy. Most of the businesses implement 4 P's marketing framework that is comprised of four elements; place, promotion, price, and product. However, to gain ultimate competitive advantages, Chick-fil-A has added two more P's, which are people and purpose. In this context, Chick-fil-A provides freshly made nutrient and hygienic "Products," and for the quality and premium services, customers feel willing to pay the "Price." The restaurants are located in almost every prominent southeast shopping mall along with a myriad of "Places" as solo outlets.

Similarly, the "Promotion" of Chick-fil-A is exclusive as it depicts a cow to promote chicken food items. The added P's affirm the restaurant's focus on its "People," because employees are the vital source for the prosperity of any business. Meanwhile, "Purpose" refers to the underlying theme of the restaurant that is solely based on religion, faith and the idea of ethics and goodness. Consequently, all these six P's collaboratively augment the strategic efficacy of Chick-fil-A and infuse a high strength in its business process.

Reference

Fil-A - Home of the Original Chicken Sandwich. (2019). https://www.chick-fil-a.com/

LaRoy, G. (2013, October 26). Chick fil A Eat Mor Chikin Except on Sunday. https://www.youtube.com/watch?v=cHAie2mz3gQ

CIT02

Assessment 1 of 2

To be administered by the Trainer/Assessor after the completion of all formal information presentation

Course and Code:

BSB41115 Certificate IV in International Trade

Unit/s of Competency:

BSBINT409 Plan for International Trade

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Assignment, Report, Presentation

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Assessment 1 – BSBINT409: Plan for International Trade

Please complete this assessment and submit for marking. This forms part of your assessment. This forms part of your assessment for BSBINT409: Plan for International Trade.

The following documents are related to this document.

BSBINT409 Unit of Competency

BSBINT409 Learner Guide

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Performance objective

The students need to understand how to evaluate the most appropriate transport method, route and protection/security options according to cargo and delivery requirements, review shipping and airfreight services available for transporting cargo, evaluate packing, marking and stowage requirements for a variety of cargo, calculate international freight and other shipment costs.

Assessment description

This assessment provides questions on how to plan for International Trade.

To complete this assessment successfully answer the questions, prepare a report and a presentation in as much detail as possible.

Question 1

Objective

Ascertain business context of cargo movement

According to the Council of Supply Chain Management Professionals (CSCMP), what are the four categories of business logistics?

List five possible questions to ask to ascertain your objectives and specifications.

According to the Council of Supply Chain Management Professionals (CSCMP), these are the four categories of business logistics:

Balanced System

Heavily Outbound

Heavily Inbound

Reverse System

In order to ascertain your objectives and specifications with regard to the cargo on board, the five questions that you can ask are:

What is the content, quantity, size, value and weight of your cargo?

What is the place of origin and/or destination of your cargo?

Who will be receiving the cargo, and does it have special requirement?

What is your budget?

What is your arrival deadline?

Question 2

Objective

Examine factors to be considered in route/mode selection

Identify four factors to consider when choosing route and mode of transport and explain each briefly.

Name two advantages and two disadvantages of each mode of transport.

The four factors to consider when choosing route and mode of transport are:

Accessibility of cargo for transport.

Capacity of cargo and the requirements of its capacity.

The type of cargo and its needs for transportation.

The cost effectiveness of sending cargo is in line with the budget.

How frequently will the cargo be sent and received?

Advantages and disadvantages of each mode of transport:

Advantages

Roads have relatively low cost and gives more control over schedule and tracking.

Through sea, once can ship large volumes at lower costs and the contains can be used on the ship and for further transport, e.g. road/rail.

Through rail, Maintain railroads across country and into other countries extensively as well.

Air offers quick and long distances of delivery where a range of goods can be transported.

Disadvantages

Long distance can sometimes increase time, cause traffic delays and even breakdowns.

Sea is slower than most modes of transport and has inflexible routes and associated timetables.

Rail as well is slower and more expensive than other routes of transport and can be disrupted through mechanical failures and strikes.

Air offers higher costs and fuel prices. Also, it is not suitable for all goods.

Question 3

Objective

Evaluate conditions and risks of different routes in relation to delivery requirements and utilise resources that provide information on the current service status of particular transport routes

Explain possible conditions and risks of each mode of transport.

(within 150-180 words)

Name two resources that can be utilised to check current service statuses.

Between road, air, rail and sea, there are a number of risks associated with almost all modes of transport. For instance, with good transported through air, the cargo may face temperature and pressure changes, along with delays and strikes. With regard to road and rail transportation, the risks are often associated with movement hazards i.e. vibration shocks, impact causing breakage, careless handling and even road and lines being blocks. Finally, sea transportation can cause water damage and even cause containers to drop into the sea due to wave impact. Finally, the corrosive atmosphere and the hostile storage conditions also contribute towards the hazards of sea transportation. For all these reasons and more, the aspects with regard to planning international trade should be treated with cautions. Thus, in order to ensure that one has the right information, recent travel information, the associated conditions and risks involved should be evaluated before sending the required cargo.

Some resources that can be used to check current service statuses:

Australian and international news stations/websites.

The shipping provider’s website, e.g. updates or news pages.

Question 4

Objective

Identify airlines and air cargo services operating in and out of Australia

Identify your nearest airport and list three airlines that fly from there.

Where is your closest air cargo airport? (within 20-30 words)

What are the three primary options of air freight service? Briefly explain each. (within 30-40 words for each)

My nearest airport would be Sydney Airport and following flights arrive and depart this terminal:

Eastern Australia Airlines

Pel-Air

Qantas

The new Sydney airport began offering freight firms the use of the airport for its services recently. Thus, that would be the closest to me.

There are three forms of air freight services. They are;

Next flight out – This service ships cargo as soon as a flight is available. It is an expediated flight service and is one of the fastest options there is. However, it is often one of the costlier services and needs a service provider that has the resources available and can locate free space even at the last minute to meet deadlines.

Consolidated Shipping – Here, the cargo is combined with other shipments and it moves on a set schedule. This combining of cargo and the set schedule usually leads to lower costs than other options. However, smaller shipment sizes can certainly lead to delays.

Deferred – This form of shipment is only available if there is room of flight, thus this option is used for low priority shipment. It is to maintain a regular schedule and is only allowed to defer a few working days at a time. It offers great cost value though.

Question 5

Objective

Compare configuration and carry capacity of different types of aircraft

Give two major differences between the configuration of a commercial air freighter and a passenger aircraft.

Identify the aircraft with:

The largest cargo volume

The fastest cruise speed

The largest cargo mass

The furthest maximum range

Commercial Air Freighter

Passenger Aircraft

Larger spaces, fitted security measures.

Internal arrangement created to meet passenger needs before cargo.

Entry and exit points designed for cargo.

Doors aisles, facilities, galleys, pitch, and seat sizes have an impact on design.

The aircraft with:

The largest cargo volume – Airbus Beluga

The fastest cruise speed – Boeing 757-200 Freighter

The largest cargo mass - Antonov An-225

The furthest maximum range - Antonov An-225

Question 6

Objective

Identify shipping services and types of ocean vessels operating in and out of Australia and compare different types of shipping services

Identify three Australian ocean freight companies.

Name five different ocean freight transportation services and briefly explain each.

Three Australian ocean freight companies are:

Oceanic Shipping

Cargo Australia

Seabridge

The five different ocean freight transportation services are:

Less than Container Load (LCL) – This is a cost-effective option where smaller loads of cargo are sent overseas by sharing container space.

Full Container Load (FCL) – This form of fright transport is used if larger amounts of valuable goods need to be shipped in a timely manner.

Temperature-Controlled Freight Forwarding (Reefer Containers) – These are refrigerated containers, which are usually set to a particular temperature that protects goods from being spoiled. Here, both the temperature and humidity is controlled at all times.

Hazardous Containers and Dangerous Goods – Such containers are used for the transportation of flammable liquids, explosives, pharmaceuticals, gases, dry ice, fuel cell engines, corrosive substances, and oxidising substances.

Roll-on, Roll-off (RoRo) – Used to transport wheeled items, that can be rolled on and rolled off of tractors, automobiles, and other heavy machinery that is mounted on wheels.

Question 7

Objective

Compare configurations and carry capacities of different types of ocean vessels

Name an ocean vessel which you would select for the following cargo:

Cars

Garments and footwear

Coal

Crude oil

Liquefied natural gas

Where possible, identify any maximum capacities.

An ocean vessel ideal for the following cargo:

Cars – Ro-ro vessels - can carry over 21,000 TEU i.e. twenty-foot equivalent units.

Garments and footwear – Container vessels

Coal – Bulk vessels

Crude oil – Crude carriers

Liquefied natural gas – Liquefied gas carriers

Maximum capacities for ocean vessel ideal for the following cargo is:

Cars – Ro-ro vessels -

Garments and footwear – Container vessels

Coal – Bulk vessels - 400,000 metric DWT.

Crude oil – Crude carriers - few thousand DWT to 550,000 DWT.

Liquefied natural gas – Liquefied gas carriers - 10,800m³ (380,000 cu ft).

Question 8

Objective

Analyse and prepare protection, presentation and preservation requirements

List five important pieces of information that you should know in order to prepare your cargo for transport.

Write a short guide on packaging considerations that cover the ‘three Ps’ (protection, presentation and preservation). (within 200-400 words)

Five important pieces of information that one should remember in order to prepare your cargo for transport:

Nature and type of goods

Mode of transport

Volume and Weight

Types of packages

Number of packages

Once you have analysed the above points, you can properly prepare your goods for their journey. The points below are a variety of packaging considerations to cover the ‘three Ps’. Goods should be properly secured, evenly distributed and well stowed within the packaging. If the packaging is not completely filled, then goods must be cushioned to stand against any shock or vibration. Where necessary, use battens (bars of wood) or dunnage (mats, shavings, etc.) and adequate internal bracing. Strap together and secure multiple smaller packages, this can be done with a wooden pallet base. When assembling your cargo packaging, make sure it is the largest practical unit it can be according to handing, dimension and weight requirements. Consider other packages that might travel or be stored with yours, prevent damage from ‘over-stowing’. Check regulations for banding and strapping, for Australia and the transit/destination countries (if applicable). Try to avoid re-using packaging that could lead to breaks or collapsing. Fit the packaging as closely as you can to the shape and size of the cargo. Where possible, include waterproof wrapping and/or lining. Do not over-package your goods as this reduces carrying capacity of the transportation. Closely follow any regulations on packaging dangerous goods, e.g. chemicals, liquids, etc. Always consult the transport service provider with any queries, they will have the best knowledge on types of packaging the routes they will be travelling. Presentation is also important in the export of products; this means design, colour and embellishment which can produce a favourable reaction and improve its competitiveness.

Question 9

Objective

Analyse range of containers available for international cargo and evaluate for use

List five different international cargo containers and identify the type of cargo they transport.

Five different international cargo containers and the type of cargo they transport:

Corrugated Box – lightweight, recyclable and used for a variety of products.

Wooden Box – For heavier and denser good. Used for military and government shipments.

Crate – Usually made of wood. Used to transport big, heavy and does not need any sheathing for transport.

Intermodal container – Most widely used. ISP standardized and designed for international transport. Comes in a few different sizes.

Intermediate bulk shipping container – used for shipment of bulk material or fluids. Can be made of plastic, steel, composite, stainless steel, etc. and some can be folded (collapsed).

Question 10

Objective

Evaluate marking requirements and prepare correct marking advice

Name six different types of goods that require marking.

What are the three key pieces of legislation that cover marking requirements?

Briefly describe the correct form of a trade description. (within 120-150 words)

Six different types of goods that require marking;

Food

Articles made from china, porcelain, earthenware or enamelled hollowware. Commonly used in connection with serving food. Kitchenware or kitchen utensils

Electrical appliances

Textile products

Articles of apparel including shoes

Cigars, cigarettes, manufactured tobacco, cigarette papers, cigarette tubes

The three key pieces of legislation that cover marking requirements are:

Customs Act 1901

Commerce Trade Descriptions Act 1905

Commerce (Trade Descriptions) Regulation 2016.

The trade description must be in the English language and in prominent and legible characters. It should include the name of the country where the goods were made or produced. Where required, should include a true description of the goods ('true description' is not defined in the legislation so is taken to be anything that is a correct and accurate explanation of the goods). Unless a prepacked article, be in the form of a principal label or brand (including a mark, device, name, word, letter, numeral or symbol and a combination of 2 or more of those things) attached in a prominent position, and as permanently as practicable, to the goods – if attachment to the goods is impracticable, to the principal coverings containing the goods for wholesale or retail.

Question 11

Objective

Identify risk factors in relation to packing and storing of goods for transportation and select appropriate options

Identify three possible packing and storing hazards.

Name one control that you can put in place to avoid each. (within 80-100 words)

The three possible packing and storing hazards:

Manual tasks, e.g. lifting, repetitive movement, overexertion.

Machinery and equipment, e.g. moving parts.

Gravity, e.g. falling objects, falls, slips and trips.

In order to ensure the safe transit of the products that one is shipping, important to reiterate the need for good, solid packaging that will not break during transit or storage. This is a risk for both worker and goods. You could be dealing with very large sizes and weights, items can fall and break so make sure packaging is appropriate and secured appropriately. To prevent further damage, it is essential that lack of ventilation, incorrect temperature, duration, etc. should also be given due attention.

Question 12

Objective

Examine and apply types of rates, volume-to-weight ratio factors, volume rules including rounding off and allowable projections, principles and methods of rating cargo for international carriage by sea

Identify three different rates for sea transportation.

Using the ocean freight ratio and formula, calculate the volumetric weight for the following shipment:

100 cartons of Vegemite

Each carton measures 30cm x 45cm x 30cm and weighs 10kg

Imagine the actual weight of the Vegemite shipment was 1000kg (100 x 10 kg) in total, which would be the chargeable weight?

Three different rates for sea transportation are:

Commodity or tariff rate - Relevant to a particular commodity and rates may be quoted per tonne or by volume.

Freight of all kinds (FAK) - Per TEU/FCL/LCL in volume or weight.

Ad Valorem (‘According to Value’) - High-value goods which are costed by commodity freight rate plus premium for value of goods.

Based on the calculations, the volumetric weight for shipment of goods is 4050 Kg.

The chargeable weight will be calculated and rounded to the nearest whole number and if you have varying weights between boxes, always take the highest weight and multiply that by the number of boxes.

Question 13

Objective

Take into account variations in calculating shipping charges caused by surcharges and other variants and calculate and compare costs of shipping a variety of goods by several types of ocean service

Identify eight possible sea transport charges and variants.

You will need the internet for this activity.

Locate and choose two ocean shipping service providers with online quotation calculators. Fill in an online form which will provide you with an overall estimated cost for three different relevant products of your choice. Write a short report (within 150-250 words) of your findings.

Use www.worldfreightrates.com if unable to locate a specific company.

The eight possible sea transport charges and variants are:

Australian post security surcharge

Delivery fuel surcharge

Currency adjustment factors

Peak season surcharge

Customs clearance and agency fees

Dangerous goods regulation fees

Destination port charges, e.g. lift on and lift off

Empty return fees

According to the required conditions, I used https://www.worldfreightrates.com/ first. I chose a containerized shipping method from Sydney, Australia to Port Chalmers, New Zealand. I chose to send apparels worth $1000 dollars and the freight company asked for $360.62 - $398.58, which was also subject to additional fee and taxes.

Question 14

Objective

Examine and apply types of rates, volume-to-weight ratio factors, volume rules including rounding off, principles and methods of rating cargo for international carriage by air

Identify and explain the volume-to-weight ratio and formula for air freight.

Using the Vegemite shipment information from Question 12C, calculate the volumetric weight for air freight:

100 cartons of Vegemite

Each carton measures 30cm x 45cm x 30cm and weighs 10kg

Total actual weight is 1000kg

Which is the chargeable weight? (within 40-60 words)

The carrier will then consider both the weight and volume of your cargo by converting the volume into a ‘weight equivalent’ (also known as volumetric/dimensional weight). Then a chargeable amount can be calculated per kilogram for whichever is the greater figure between the actual/gross weight and the volumetric weight.

By multiplying 30cm x 45cm x 30cm, we get the volumetric weight for the air freight i.e. 4.050 metric tons.

Considering that the CBM for the shipment is higher than the actual weight i.e. 4.050 Metric tons to 1000kg, so the volumetric weight would be the chargeable weight.

Question 15

Objective

Explain variations in calculating airfreight charges caused by the applicability of TACT rates, fuel surcharges, other variants, and exchange rates and calculate and compare costs of shipping a variety of goods by different air cargo services

Name two airfreight fees or surcharges.

What is DHL’s fuel surcharge for August 2019?

Briefly describe what is contained in TACT. (within 200-250 words)

You will need the internet for this activity.

Locate and choose two air shipping service providers with online quotation calculators. Fill in an online form which will provide you with an overall estimated cost for three different relevant products of your choice. Write a short report (within 150-250 words) of your findings.

Use www.worldfreightrates.com if unable to locate a specific company.

Here are the quotation results for Sending a free sample 12kg box of Tim Tams from Brisbane to Tokyo:

Australia Post

express post international = $172

express courier international merchandise = $205

airmail = $165

FedEx: Australia Promotional Export rates (Zone B Japan) = $18.

DHL’s fuel surcharge for August 2019 is 17.25%

The Air Cargo Tariff and Rules (TACT) contain comprehensive information about air cargo rules and must be consulted before undertaking airfreight transportation. It covers the regulations, rates and charges associated with sending goods by air, including IATA Industry rules on the acceptance of goods, Air Waybill completion, calculation of charges and cargo claims. County rules, regulations and charges on import, transit and export for over 200 countries. Information on airport facilities, such as handling equipment and storage facilities. IATA airline, city and airport codes and AWB prefixes. Industry and carrier-specific rates: over 4,5 million rates for 350,000 city pairs covering 215 countries worldwide. Industry, country and carrier specific charges for charges collect, class rates and DGR. Exchange rates are constantly changing and you will need to identify the rates at time of transportation. There will be an import rate and export rate for the currency you are converting to/from.

According to the required conditions, I used FedEx Australia first. I chose a containerized shipping method from Sydney, Australia to Queenstown, New Zealand. In order to send a 25 kg box with goods worth $100 Australian dollars, FedEx would change $269.12. On the other hand, DHL would charge $336.81 Australian dollars to send the same shipment.

Question 16

Objective

Investigate and communicate postal and courier freight rates and size/weight factors and limitations and investigate and communicate rates and costs associated with chartering vessels and aircraft

Name six methods of effective communication when relaying information about rates and costs.

Here are some considerations for communicating your postal and courier freight rates and/or rates and costs associated with chartering vessels and aircraft:

Brevity is key - keep it simple and to the point

Include only facts and figures that are relevant and appropriate

Use clear and concise language

Stagger the feed of information if necessary or possible

Encourage feedback or any queries

Reinforce company and transport requirements in line with rates and costs mentioned

Question 17

Objective

Investigate and communicate rating principles and methods used in domestic, sea, road, rail and air transport

Create a short PowerPoint presentation (maximum 10 slides) on the rating principles and methods used in domestic, sea, road, rail and air transport and explain how you would communicate this information.

Attached with.

Question 18

Objective

Investigate all standard and extraordinary ancillary shipment costs on a door-to-door basis applicable in each mode

Name four ancillary costs that must be considered in door-to-door shipping.

Four ancillary costs that must be considered in door-to-door shipping are:

Ground transport expenses (from the warehouse to the port of origin and from the port of destination to the warehouse)

Local and cargo handling costs in the origin and destination air/ports, e.g. lift on and lift off

Specific transport freight and surcharges, e.g. CAF/BAF and TEU rates

Management and documentation delivery costs

Question 19

Objective

Investigate and communicate the total cost concept and other factors that may determine whether cargo is carried by air or sea, or a combination of both (multimodal transport)

What are the five major considerations of selecting between air and sea transportation?

Briefly explain a ‘total cost concept’ and list the six main costs included.

The five major considerations of selecting between air and sea transportation are:

Cost

Speed

Carbon footprint

Surcharges and taxes

Reliability

Total cost concept is a key concept in the understanding the whole process of international logistics; it doesn’t look at individual activities but the total cost of shipments and how to reduce this. This means looking at the system as integrated rather than individual parts, if you reduce one cost this will usually mean an increase in others. Main costs include:

Customer service level costs

Transportation costs

Warehousing costs

Order processing and information costs

Lot quantity costs

Inventory carrying costs.

Question 20

Objective

Evaluate the need for cargo insurance and investigate the standard types of cover arrangements used by underwriters

Name four different types of cargo insurance.

List seven items that you could be protected from.

Name three possible questions to ask yourself when evaluating the need for cargo insurance.

The four different types of cargo insurance are:

Land cargo insurance

Marine cargo insurance

Air cargo insurance

Single transit insurance

The seven items that you could be protected from:

Fire

Theft

Earthquake

Collison

Heavy weather

Sinking

Derailment

Non-delivery

The three possible questions to ask yourself when evaluating the need for cargo insurance are:

What would happen to your company if an entire shipment were lost?

Is the cargo of high value and/or desirable nature?

Are the goods lightweight but of a high value?

Question 21

Objective

Identify documents to be lodged with carriers, forwarders, insurance underwriters and customs in cargo loss or damage situations and complete for a hypothetical situation

Using the information below, fill in this claim form adding any details necessary. You should complete it in full ready for submission.

100 cartons of Vegemite

Each carton measures 30cm x 45cm x 30cm and weighs 10kg

4 cartons have gone missing

Own truck transportation from Sydney to Brisbane.

To access a claims form, use the following link and print your completed document:

https://www.zurich.com.au/content/dam/au-documents/claims/marine/goods-in-transit-claim-form.pdf

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