Marketing Strategy and Multi-Channel Marketing - Assignment Example

Marketing Strategy for Gloria Jean’s Coffees The Coffee shop market has increasingly been on the rise with increasing numbers of coffee shops that have developed in the country. This factor leaves the legendary coffee shops with no other option but to match up the need of the market demand and supply. It is for this reason that the Gloria Jean’s coffee shops need exemplary market strategies so as to elevate its sales and improve on the deteriorating market returns (Gronstedt, 2000). It is important to note that the quality of the services offered need not be compromised or otherwise other coffee shops will benefit from the competitive disadvantage. If anything, the quality of the products and services offered should be ultimately enhanced. This research has looked into the nature of the market trend and will recommend two marketing strategies that will be aimed at correcting the phenomenal disadvantage of increased competition of Gloria Jean’s Coffees (Aaronson, 2003). Strategy 1: pricing Pricing is a strategy that many businesses utilize to secure a significant market share for their goods and services. In this case, Gloria Jean’s coffees are capable of developing very competitive pricing strategies that will enable realization of securing a better market share in the very competitive field. This strategy will strategically place the products from Gloria Jean’s coffee at preferred rates in comparison to other products of the same caliber from the other competitors. However, it is vitally critical that this strategy will not compromise the returns that the company is to achieve at the end of a certain trading period (Hoyanyetz, 2003). This strategy aims at promoting the sales of the products of the company. Pricing strategy ensures that the prices most importantly remain the most preferred ones in the market. This will greatly increase the number of customers visiting the shops and those who will be seeking to get their services from Gloria Jean’s coffees (Hoyanyetz, 2003). Essentially, the returns will seemingly rise due to increased demand for the services. With no compromise on the quality of the products, pricing strategies is the best marketing tool which will attract and create more new consumers. With increased preference to the company’s products, probably later on the prices won’t matter to the consumers. At this point the company can probably equal the product prices in line to those of competitor substitutes (Personalized on Demand Printing & Publishing, 2002). The most important thing here according to this strategy is enhancing the belief and preference of the products and services offered by the company. The pricing strategy can also incorporate market position buying. This involves the buying of market share by introduction of free samples in the market either directly or when attached to certain amounts of the products. Coupons can also be int5roduced to entice buying of the products. This may however make the company realize low profit margins but greatly helps to achieve customer loyalty so that in future even if the prices are raised, the customers will still remain (Hoyanyetz, 2003). The company may also use what is referred to as loss leader. This involves the introduction of promotional items incorporated in the general common sale- merchandise. This attracts a larger number of consumers who will end up buying the general merchandise. For instance Gloria Jean’s coffees can introduce smaller packages attached to the general merchandise. It is however important to keep eyes open on such promotional merchandise since some people will go for the promotions and end up buying nothing. Such phenomenon may eventually cause great losses to the business (Ho, 2003). Introduction of special multiple item pricing will also boost the business sales. Discounting of large sales helps in customer goodwill building. Encouraging volume sales by multiple unit pricing increases the profit margins within short time periods. Price lining can also help in boosting sales (Gronstedt, 2000). This is because different customers have different financial capacities and therefore price lining ensures that every potential customer can afford something in the shops. Gloria Jean’s Coffees can therefore vary the qualities of their products and consequently the prices. This will ensure that every customer can afford a product in the shops due to varied prices. Price lining also saves on the production of products that the customers will not be interested in. this procedure saves the business on inventory and buying expenses which can be avoided (Ho, 2003). Pre-season pricing whereby the customers are discounted or given incentives prior to buying early are another pricing strategy that Gloria Jean’s Coffees can go for. This promotional feature encourages more buying at certain prescribed seasons by customers in a rush to enjoy the discounts (Direct Marketing Association). Pricing strategies offer the most important marketing tool because many consumers are economically oriented to go for products with the most competitive prices. However the little proportion of consumers who give preference to quality should as well is considered. Thus, price lining is also as important as any other pricing process (Personalized On Demand Printing & Publishing, 1997). Strategy 2: promotion Promotion just as pricing is another important marketing strategy. Essentially, promotion incorporates all the key communication aspects between the potential consumer and the business. It can therefore be utilized as a convincing tool to build the confidence of the buyer in the products of the business. The versatility of this strategy lies in the fact that it is able to change the perspectives of the potential buyer, expand the target audience and reach to more potential consumers across a region (Aaronson, 2003). All this will no doubt increase substantially the volumes of sales and consequently the profit margins of Gloria Juan’s Coffees. However, promotional strategies need to be well planned and budgeted for or otherwise shocking financial constrains may be realized in the business turnovers. It is therefore important for the business to budget for the finances promotion. This should of course be separate from the production budget that is often accounted for by the business. Finances probably may come from the profits gained over a certain period of time but of course this has to be planned in advance way before it execution. A timely execution of the promotional strategy is also critical (Aaronson, 2003). This should enable the business to realize when it is the right time to sell. The business should have a well laid marker survey which will determine the buying process on a timely basis. The business should only execute the promotional strategy during the maximum cyclical demand period (Aaronson, 2003). The business should ensure that then promotional efforts are distributed to advertising, promotion and publicity. Then business should consider incorporating advertising companies and should the cost should be budgeted for every year. Adverts should be placed in different media including newspapers, internet, TV and radio (Direct Marketing Association). Promotional efforts are also important part of this strategy. The efforts involved include store displays, giveaways and advertising specialty. The business should consider issuing publicity reports including magazines. The cost should be budgeted for as sometimes it may incur large costs. Publicity helps in informing consumers about product remodeling, change in the product name and packaging (Aaronson, 2003). It should however be taken into consideration the approach of promotion and advertising so that this is in line with the business’s aimed position in the marketplace. The business marketing concept should be in line with the benefits that the company aims to realize at the end of the trading period. This therefore necessitates the suitability of the medium of advertisement chosen. The advertisement message should show the benefits that the consumer is likely to enjoy after purchasing or in the case of Gloria Jean’s Coffees, the benefits the consumer will enjoy after consumption of the products (Ho, 2003). A market survey will be important here to determine the kind of information that the business need to focus on before execution of this promotional strategy. The research can be conducted by conducting customer questionnaire survey (McKenzie 2003) . A simple survey form to be filled by the customers can take the model below. 1. Are our services up to your expectations? How do you think we can improve our services to suit you? _____ yes _____ no 1. ___________________________________________________ 2. ___________________________________________________ 3. ___________________________________________________ 2. Are our brands meeting your needs? If not, indicate what other products or services we can add to the market. _____ yes _____ no 1. ___________________________________________________ 2. ___________________________________________________ 3. ___________________________________________________ 3. Is our business environment meeting your required standards of cleanliness? If not, How can it be improved? _____ yes _____ no 1. ------------------------------------------------------------------------ 2. ------------------------------------------------------------------------- 3. ---------------------------------------------------------------------------- 4. Do you think the business plays an important role in the community? _____ yes _____ no 5. Are our workers friendly? _____ yes _____ no 6. Are our prices competitory? _____ yes _____ no 7. Do you feel you are served as you deserve? _____ yes _____ no (Banta Technovation, 2003) The questionnaire can also be inclusive of other questions which the business may think will be important in helping it realize the promotional requirement. However, the questions should be simple and closed so that they consumer can only give yes or no answers. When designing the actual adverts to put across the media, there are things should be avoided. Most importantly the message contained should be well drafted to avoid misinforming the consumers. The communication language should also be conscious about the image the advert creates on the business. First of all, the advert should not contain personal pronouns. Instead, the message should use the third person pronouns. The advert should uniquely identify with the business. That necessitates the business logo requirements. The logo should be used in all the business adverts (McKenzie & Matt, 2003). The power of the adverts is that they help in persuading the consumers to buying. Business market share is greatly dependent on the persuasion power. Business consumer relationship is said to be that of a win-win nature. This means that the business helps the consumer to meet their need and on the other hand the consumer helps the business in realizing profit margins (Federal Trade Commission, 2002). This illustrates the dire importance of this strategy. The enlightenment of the consumers through promotion of the products by the Gloria Jean’s coffees holds more than meets the eye. As per say, every other success of this business is strongly reliant on this strategy (Hoyanyetz & Scott, 2003). These strategies discussed above will no doubt project the sales off Gloria Jean’s Coffee as they place the business in an incomparable competitive advantage. Actually, when well timed, the two marketing strategies when executed on a well timely managed process will resolve the issues that the business is experiencing currently. They will revive the market share of the business and elevated the deteriorated turnovers. Marketing remains a complex part of any business and it responsible for the failure or the success of the business. References Aaronson, J. (2003) Multi-Channel Marketing: Channibalism? Retrieved from http://www.clickz.com/crm/crm_strat/article.php/2205571 Direct Marketing Association. FCC Will Work With FTC to Strengthen National Do-Not-Call Registry. Retrieved from http://www.the-dma.org/cgi/dispnewsstand?article=1272 Federal Trade Commission. (2002). Information for Businesses. Retrieved from http://www.donotcall.gov/FAQ/FAQBusiness.aspx Gronstedt, A. (2000). The Customer Century. New York: Routledge. Banta Technovation. (2003). Growing Results: Achieving Greater Data-Driven Marketing Success. Banta Technovation News Brief. Ho, D. (2003). Do-Not-Call Still a Big Hit, CBSNews.com. Retrieved from http://www.cbsnews.com/stories/2003/03/11/politics/printable543573.shtml Hoyanyetz, S. (2003). Many Exempt from DNC List. DM News, Volume 25, Number 27, July 21, 2003 McKenzie, M. (2003). The New Marketing Campaign: Combining E-mail, Print Effectively. The Seybold Report; Vol 3, No. 3. Personalized On Demand Printing & Publishing. (1997). Targeting the Right Market Opportunity. CAP Ventures Research Report. Personalized On Demand Printing & Publishing. You Can't Build CRM without Content: Dynamic Content Solutions as a Key Requirement for Customer Relationship Management Initiatives. (2002). CAP Ventures Research Report. Read More