Online Comparative Study: HSC Marketing

The following portal involves an online Comparative Study program.

This focus of this particular study incorporates the HSC topic of Marketing.

Immerse yourself in a virtual study that illustrates comparative case analysis between Krispy Kreme (a global doughnut and coffeehouse company) and Starbucks (also a global cofeehouse company).

Activities will allow you to apply business concepts and understanding as well as problem solving capabilities toward the focus topic. You will also take part in a presentation (either through a role play or tv commercial) to develop understanding of project-based learning approaches which is linked exclusively to this comparative study.

By the end of this program, you will be able to form relationships and linkages between the syllabus content related to Marketing and the online comparative study.

Best wishes and enjoy your experience

You have been chosen to take part in our Online Comparative Study. This program will provide you with suggested resources to develop understanding of how two global fast-food chain restaurants compete against one another on a global scale. The following program will also illustrate how marketing processes and strategies are used to influence business activity, particularly through an integrated marketing approach.

We require expert analysis on the appropriateness of pertinent market strategies and approaches in comparing the performance of these two global companies.

FAST-FOOD RESTAURANT INDUSTRY

Online Comparative Analysis - KRISPY KREME vs STARBUCKS

Krispy Kreme and Starbucks are two examples of global fast-food restaurant chains that have experiences transformation and failure in recent years. This has been evident in the number of store closures in both global chain due to internal and external business forces. Changes in business and marketing strategies have allowed these two global chain to survive, however; increasing competition places many constraints for future management of these businesses. Your role is to examine this change and assess the function, process and strategies of these two global chain in delivering effective business performance.

The following suggested background readings will assist you in completing this study. In addition, further Internet research is required.

 

Suggested readings

 

http://www.starbucks.com.au/History.php

https://www.krispykreme.com.au/history

http://panmore.com/starbucks-coffee-marketing-mix-4ps-analysis - STARBUCKS

https://prezi.com/nztwsujc0ah6/4-ps-of-marketing-krispy-kreme-analysis/ - KRISPY KREME

https://www.dropbox.com/s/4592qrppvzbodu5/Starbucks%20competitive%20analysis.docx?dl=0 - STARBUCKS

https://www.dropbox.com/s/w9yzwb71osj347n/2004%20KRISPY%20KREME%20CASE%20ANALYSIS.docx?dl=0 – KRISPY KREME

LESSON 1 BACKGROUND OF CASE STUDY

 

ACTIVITY 1: YOUR EXPERIENCES & TASTES (time allowed 10mins)

 

The purpose of this activity is to clarify your understanding of the key marketing elements of a successful business entity

 

Task 1

From a marketing perspective, list the key elements you believe are the most important to a successful business or company (i.e. key characteristics customers value when offered a product/service)

 

Task 2

The purpose of this activity is to develop your thoughts, opinions and experiences when seeking a one-stop outlet for consuming doughnuts, food and coffee.

Task scenario

You have finished work early today. You are driving home and are in need of a coffee and a snack. You are fortunate enough to have the option of visiting Krispy Kreme or Starbucks, located within 2km from your workplace. The two images above illustrate two competing global brands offering coffee and light meals/snacks to customers.

Task Outline (in your own words) why you would choose one global brand over the other one.

(i.e. based on your experiences and opinions, what strengths and qualities does one global brand have over the other AND what disadvantages do they have when competing against each other)

 

 

ACTIVITY 3: PRODUCTS/SERVICES OFFERED (time allowed 10mins)

The purpose of this activity is to identify the products offered by Krispy Kreme and Starbucks

Task Refer to the suggested readings (and company websites) to complete the following:

a)  a) List the products/services that are offered by Krispy Kreme

b)  b) List the products/services that are offered by Starbucks

 

 

ACTIVITY 2: MARKET RESEARCH (time allowed 20mins)

Market Research is often used to assist businesses in achieving its objectives and marketing strategies, particularly through an increase in sales and profits.

The purpose of this activity is to develop background knowledge and understanding of the views of customers that purchase products and/or services that Krispy Kreme and Starbucks offer in a global marketplace.

 

Task

a) Watch the two videos below and answer the following questions:

https://www.youtube.com/watch?v=q0WNGgnr09I -Krispy Kreme

https://www.youtube.com/watch?v=MeqrvVyH2mI - Starbucks

Note: pay particular attention to visuals/images and comments/reviews made by customers

 

a)   b) Briefly explain the data collection strategy by these two global fast-food chains in collecting relevant data about its target market (as per the video clips)

b)   c) Suggest AT LEAST ONE other data collection method for each global fast-food chain and outline how this method can be successfully used to develop marketing objectives for a target market

 

 

ACTIVITY 3: TARGET MARKET (time allowed 20mins)

 A target market is a group of potential customers that a business intends to sell its products or promotes its services to.

 The purpose of this activity is to develop understanding of the target market approach used in Krispy Kreme and Starbucks

 

Task Use the suggested readings and additional research (if required) to answer the following:

a)  a) Identify Krispy Kremes’ target market

b)  b) Identify Starbucks’ target market

c)  c) Evaluate using arguments FOR and AGAINST; the decision of Krispy Kreme in adopting a niche market

d)  d) Evaluate using arguments FOR and AGAINST; the decision of Starbucks in adopting a niche market

LESSON 2 SWOT ANALYSIS 

ACTIVITY 1: SWOT ANALYSIS (time allowed 35mins)

The purpose of this activity is to develop understanding of the strengths, weaknesses, opportunities and threats (SWOT) of the two global fast-food restaurants.

 

Task 1 Using the suggested readings and additional research (if required), your task is to fill in the SWOT analysis for Krispy Kreme in the table below

 

To assist you, an example of a SWOT Analysis on McDonalds is provided below:

https://www.youtube.com/watch?v=qbyb0ht-dsk - MCDONALDS SWOT ANALYSIS 

KRISPY KREME SWOT ANALYSIS

Strengths	Weaknesses	Opportunities	Threats

Task 2 Using the suggested readings and additional research (if required), you are asked to construct a SWOT analysis for Starbucks using Microsoft word or excel – AND UPLOAD IT TO THIS PORTAL

 

Task 2 You now have an understanding of the business strengths, weaknesses, opportunities and threats of the two competing fast-food chains. You are now required to explain which business is better positioned in the market (i.e. which company is better served in achieving a competitive advantage in the electronics market vs the company that is facing an uphill battle in achieving success)

 

 

ACTIVITY 2: PRODUCT VS PRICE (time allowed 25mins)

Recall the marketing mix comprises of the 4 P's

 

The purpose of this activity is to determine the most cost-efficient and valued product offering when comparing the two global fast-food chains

 

Task 1 You are required to construct a table in an excel spreadsheet and upload it to this portal. In the table you are required to create 4 columns (Krispy Kreme products, Prices, Starbucks products, Prices). You will then research the menu (by using the company link above or other research) for Krispy Kreme and Starbucks to fill in the appropriate products and prices offered.

 

Task 2 

a) Based upon the table you constructed, explain (in your own words) assess the products that are more economical to purchase and the products that are more expensive in both fast-food restaurants.

b) List the items you will choose to purchase, identify where the products/items will be purchased from (Either Krispy Kreme or Starbucks OR both) and calculate the total cost of your purchase.

 

 

LESSON 3 MARKETING MIX 

ACTIVITY 2: PRODUCT VS PRICE continued… (time allowed 25mins)

 

Task 3 Now that you have a comparison of the two fast-food restaurants' products and prices, the purpose of this task is to compare and contrast the key success elements of the ‘product’ that apply to the two global brands - in the table below 

 

a) Evaluate how the product/service differentiates and positions itself compared to its' competitor (i.e. evaluate how Krispy Kreme outperforms Starbucks in product quality, customer service etc AND VICE VERSA)

Product (Krispy Kreme)	Product (Starbucks)

b) In the table below, you are required to list and explain the pricing strategies used by both Krispy Kreme and Starbucks to gain competitive advantage in its business offering

Pricing Strategies (Krispy Kreme)	Pricing Strategies (Starbucks)

ACTIVITY 2: PLACE/DISTRIBUTION (time allowed 25mins)

Recall the channels of distribution in the Marketing Mix of 'Place'

 

The purpose of this activity is to determine the most appropriate distribution channel that gives the two global fast-food chains a competitive advantage in the market

 

Task Using the suggested readings and additional research (if required) complete the following:

 

a)  a) Justify (using a comparison table) the most appropriate distribution channel that Krispy Kreme and Starbucks uses to deliver products/services to respective customers (i.e. why might Krispy Kreme have chosen a particular type of distribution for their products and vice versa?)

 

b    c) Outline ONE physical distribution issue in each of these two global fast-food chain that may need to be addressed

 

In your response, refer to logistical issues regarding the distribution of a product that requires specific needs (i.e. packaging, timing of received product, quality of product, shipping/delivery issues etc)

 

 

 

ACTIVITY 3: PROMOTION (time allowed 10mins) 

Recall the Promotional Mix a key component in the Marketing Mix of 'Promotion'

 

The purpose of this activity is to determine the most appropriate promotional strategies that provides a competitive advantage for the two global fast-food chains

 

Task Using the suggested readings and additional research, complete the following:

 

a)  a) Distinguish between promotional mix and marketing mix

 

b)  b) Evaluate the most successful promotional strategies used by Krispy Kreme in marketing its business products and/or services

 

 

LESSON 4 PROMOTION

 

ACTIVITY 3: PROMOTION continued…. (time allowed 25mins) 

 

c)  c) Identify and explain the most successful promotional strategies used by Starbucks in marketing its business products and/or services

 

d)  d) Collect and upload to this portal, evidence that illustrates a valid attempt by Krispy Kreme and Starbucks in promoting its products/services

 

Note: evidence can be in the form of a document or image

 

e)  e) You are required to assess the importance of using a combination of promotional strategies (instead of individual promotional strategies) in marketing and achieving competitive advantage in both Krispy Kreme and Starbucks' business model.

 

In your answer, refer to the communication processes used (opinion leaders and word of mouth) and how these processes influence the marketing of these two global brands.

 

 

ACTIVITY 1: PROMOTION – GLOBAL BRANDING (time allowed 10mins)

The purpose of this activity is to develop an understanding of the benefits that Global Branding has on a business, using comparative table analysis 

 

Task 1 Using suggested readings and Internet research, complete the following:

 

a)  a) Explain (using a comparison table) TWO possible benefits to the two global fast-food chains by using global branding as a marketing strategy (i.e. benefits operating in a global context)

 

 

ACTIVITY 2: MARKETING STRATEGY (time allowed 20mins)

 

Task 2 Referring to the SWOT analysis conducted in LESSON 2, complete the following:

a) Complete the table below that outlines the threats Krispy Kreme is faced through increasing competition by Starbucks

Threats (Krispy Kreme)

b) Complete the table below that outlines the threats Starbucks is faced through increasing competition by Krispy Kreme

Threats (Starbucks)

a)  a) Evaluate AT LEAST TWO marketing strategies that Krispy Kreme could use to respond to the threats posed by Starbucks

 

b)  b)  Evaluate AT LEAST TWO marketing strategies that Starbucks could use to respond to the threats posed by Krispy Kreme

 

Task 3 In achieving a competitive edge in the fast-food restaurant market, it is important that businesses realise the need to innovative and differentiate its product and service offering.

 

a) Recommend strategies that can further improve the strategic performance of the two global fast-food chains

 

(which company is better served in achieving a competitive advantage in the electronics market vs the company that is facing an uphill battle in achieving success)

Task 4 Construct a flow chart (using microsoft word and upload it to this portal), labelling and illustrating the journey of failure, changed strategy and success of these two global fast-food chains.

Individual Online Comparative Study Marking Criteria

 

Student Name:     ­­­___________________         

Criteria	Mark
Demonstrates detailed knowledge and understanding of business functions, processes and management strategies Presents a sustained, logical and cohesive response in the form of an online comparative case study analysis using relevant business terminology and concepts Clearly communicates detailed information relevant to the case study Outstanding level of research to support comparative study	21 – 25
Demonstrates thorough knowledge and understanding of business functions, processes and management strategies Presents a logical and cohesive response in the form of an online comparative case study analysis using business terminology and concepts Communicates information relevant to the case study Good level of research to support comparative study	16 – 20
Demonstrates knowledge and some understanding of business functions, processes and management strategies Presents a satisfactory online comparative study using business terminology and concepts Communicates some information relevant to the case study Satisfactory level of research to support comparative study	10 – 14
Demonstrates basic understanding of at least some of business functions, processes and management strategies Presents a basic online comparative study using some business terminology and concepts May provide information relevant to the case study Little/Minimal level of research to support comparative study	5 – 9
Demonstrates limited understanding of business functions, processes and management strategies May present a basic online comparative study using limited business terminology and information that may be relevant to the case study Unsatisfactory level of research to support comparative study	1 – 4

Congratulations! You have reached the completion of your Online Comparative Study.

You have now acquired the knowledge of marketing process and strategic skills in problem solving and ability to engage in real-world learning contexts using this amazing online virtual tool. 

As a result, you are now an expert in marketing analysis.

I thank you for participating and i hope you enjoyed your experience.