Topic
Principles of Marketing and Strategy
Instructions
Briefly outline the 4 Ps of the Marketing Mix. Develop two different marketing mixes
(4 Ps) for a lipstick designed for two different target markets – one lipstick is
targeted at teenage girls and the other one is a premium lipstick for middle-aged,
upper-class women. How will the marketing mixes for these two products differ?
2. What is a brand? And why is it important from a consumer’s perspective and a
business perspective? Illustrate your answer with at least two examples.
3. Burger plc is a successful chain of fast-food restaurants, with a large network of
restaurants around the country. The company has an outstanding brand and
customer loyalty among families with young children below 12. With growth slowing
in the fast-food sector, the company is considering entering the children’s theme
park industry. Provide some rationale of why it would be justifiable for Burger plc to
enter the theme park business. If Burger plc were to enter the theme park industry,
should they do so through internal development, acquisition, or by an alliance?
Please explain clearly your justification.
4. A leading chocolate manufacturer in country A is considering entering the chewing
gum market by acquiring a leading chewing gum manufacturer in country B. Each
company’s operations are confined to one country. Discuss why this move could be
justifiable for the chocolate manufacturer?
Answer Preview
Pricing will be determined on the basis of competition (Penetration strategy). Prices will increase on the basis of the perceived value that a customer derives from the lipstick versus what the competitors provide. The product will be placed in different quantities priced at slightly lower than competitors with the lowest packs attracting the lowest and the largest quantities selling at high prices. This strategy will ensure that teenagers can access the lipstick according to their budget capabilities, and foregoing products from the competitors (Lecture Session 9).
The place variable will involve sealing retailers such as hypermarkets and supermarkets, Specialty stores, and departmental stores to ensure minimal intermediaries and keep the prices low. Teenagers can buy the product from retailers. As opposed to other intermediaries, retailers sell goods and services directly to consumers for personal use (Lecture Session 9).
The promotional strategy will involve social media marketing o reach teenagers. Teenagers are largely present in social media platforms such as Instagram, Facebook, and YouTube. The reason for this strategy is a wider reach and effective targeting (Lecture Session 10).
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