MRKT 310 Principles of Marketing (I selected topic of Facebook) Week 6 Writing A

Question

MRKT 310 Principles of Marketing (I selected topic of Facebook)

Week 6 Writing Assignment

Part 1 - Creating Offerings

Learning Outcomes

Offering. Student can describe an offering based on features, benefits, price, and costs of ownership

Type of consumer offerings. Student can suggest marketing strategy implications based on the type of consumer offering under examination.

Product line extensions or new product development.  Student can suggest possible product line extensions or related product or service offerings based on the student’s chosen product or service offering.

Product lifecycle. Student can suggest potential marketing strategies based on the product or service’s lifecycle stage.

Directions

Your job in this Writing Assignment is to develop marketing mix strategies to ensure a value offering for the target market you identified in the previous assignment. We begin with the value offering this week.

We don’t expect you to develop strategies based on a total knowledge of the product or service since you are not, or most likely not, employed by your product or service’s company. We will be looking to see if you can apply the marketing concepts to the real world situation.

Again, do not fall into the trap of reporting on the product or service. This is obvious because your assignment will look like a rewrite of the company’s website. Don’t be afraid to make strategy recommendations based on what you have discovered about the product or service, and how you think it can move forward. Be creative, be reasoned, take risks.

Remember your product’s target market(s) from the previous paper. Always keep them in mind when making your recommendations. You now work for the company, and your goal it to help them grow sales.

Prepare your assignment beginning with a title page with your name and the name of your product or service. Then answer each of the following eight questions (four in part 1 and four in part 2) in order and number the beginning of your response to each question. You do not need to repeat the question. The paper should contain approximately 5 pages of analysis for the responses to the eight questions.

Offering. Describe your product or service offering as it is currently in terms of features and benefits, price and the total cost of ownership as discussed in the week's readings. Is it more product dominant or service dominant? What are the tangible and intangible aspects?

Type of consumer offering. Based on the four categories of type of offerings discussed in course content, describe the category in which your product or service offering belongs. Based on your new target market, would that category of the offering change and if so, how? How would it change the marketing strategy?

Product line extensions or new product development. Should the current product or service be modified to more fully meet the needs of your new target market? Would the changes constitute a new product line, a product line extension or a new product? If no product changes are needed, how does the same product or service meet the need of your target market differently than current customers? Would the product line extension or new product allow the offering to occupy uncontested space in the perceptual map for the target market as covered in thr previous paper?

Product lifecycle. In which stage of the product lifecycle is your product or service offering now? Would the changes described in number 3 above change the lifecycle stage and if so how? What would this mean to the lifecycle marketing strategy?

Part 2 - Using Marketing Channels and Price to Create Value for Customers

Learning Outcomes

Marketing Channels. Student can outline a multi-channel distribution system

Marketing channel strategy. Student can recommend a marketing channel strategy for a product or service offering that assures the correct amount of intensity.

Value chain. Student can discuss how each channel in the product or service offering adds value to the customer.

Pricing strategy. Student can analyze a current pricing strategy and make recommendations for modifications.

Directions

This part of the assignment assesses your ability to relate marketing mix concepts of distribution and pricing to your product or service offering. You will also have a chance to recommend new distribution and pricing strategies based on your new target market to meet their needs.

Answer each of the following four questions, in order, numbering each of your responses. There is no need to repeat the question.

Marketing channels. To the best of your ability, outline the marketing channels of your product or service offering as they currently exist. Refer to Figure 6.2 for some ideas. Most product and service offerings will have more than one channel, so your system should include at least two; for example (1) a direct channel for internet sales: manufacturer --> customer; and (2) an indirect channel such as manufacturer --> distributor --> wholesaler --> retailer --> customer. If your product or service only has only a direct channel, explain why. Would this channel strategy change as a result of your new target market? Why or why not?

Marketing channel strategy. Why type of distribution intensity strategy does your product or service currently use? How do you know this? Would this distribution intensity strategy change for your new target market? Why or why not?

Value chain. Referring back to your marketing channel diagram, discuss what each member of the value chain does to bring value to the consumer.

Pricing strategy. Referring to the various pricing strategies outlined in the week's readings, which one does your product or service currently use? Would you recommend any changes for your new target market? If so, how would you change it and why?

General Submission Requirements

Prepare as a word processed document (such as Microsoft Word). Use a simple 12-point font such as Times New Roman. Use black ink for majority of your work and only use colors if it enhances your ability to communicate your thoughts.

Your assignment should be the equivalent of approximately five pages of double-spaced text, approximately 1/2 page for each of the eight questions (four in Part 1 and four in Part 2).  You may attach exhibits that will not be counted towards the page count of double-spaced text. The cover page and Bibliography page are not part of the five pages of written analysis.

Be sure your name, writing assignment number, and the name of your product or service are on the cover page of your writing assignment.

Include a bibliography, which includes at least four references.

You may use MLA or APA style, or any other college-level style guide. More information about using a style guide can be found in the UMUC's virtual library accessible from your LEO classroom or at umuc.edu/library.   

Upload your word processed document in your LEO assignments folder by the due date in the LEO calendar.

Refer to the grading rubric for the assignments. Be sure to note that 20% of your grade on this assignment will be based on your grammar, composition, adherence to the submission requirements, and use of an appropriate college-level style guide for writing and referencing.  

Explanation / Answer

Target Markets

            There are several consumer demands or problems which still remain unaddressed and can create business opportunities for the companies. One such consumer driven market is the quick service fast food industry. It is a niche segment and has been mostly dominated by large players such as McDonalds, Burger King, and Subway. However, they have failed to address the need for introducing innovative products with new flavors and taste. People live in a fast paced world, and they do not have time to wait for orders to come in a traditional restaurant in their day to day life. The lag time between the order and the delivery of the food is the biggest irritant in a fine dining restaurant. Moreover, they also want some variations in the food taste in the quick service restaurants (QSR). Incidentally, this gap has been identified by Taco Bell, a QSR chain in the U.S. based out of Irvine, California. It serves a range of Tex-Mex such as tacos, burritos, quesadillas, and other specialty items. Taco Bell was founded by Glen Bell who used to sell hot dogs in a stand at San Bernardino, California. After a lot of modifications and evolutions, he set up the first Taco Bell in Downey in 1962.It became widely popular within a few years and threatened the bigger players in the industry with its unique menu, which was mix of American and Mexican food. It hasventured into a new segments wherein it has launchedseveral innovative fast food items inspired by the Mexican dishes. Customers expect quality products in order to show any interest for a new launch(Roper, Samikkannu, & O’Rourke, 2012). However, Taco Bell has always lived up to the expectation of customers in terms of product quality and customer service. It has a wide range of food items in the fast food segment, which has enabled Taco Bell to create a strong brand for itself. Taco Bell’s primary customers are the office goers and the students who staying away from their families. It is this segment of the population who do not have time for having their lunch or dinner and cannot invest time or effort to have prepare food at home. Moreover, the younger generation is more open to the idea of trying out new dishes. Mexican food has been a big hit in America and is strongly ingrained in the U.S. food culture. Therefore, the young generation staying away from their homes for work or study should be the primary target of Taco Bell. In order to tap into this segment, Taco Bell needs to have a holistic product portfolio ranging from tacos, burritos to burgers and soft drinks. Taco Bell needs to define its target market properly before pursuing any of its product launch strategy. Target market should be defined by keeping in mind the value proposition of the product and the problem it wants to solve for the customer. Fast food is not a necessity for the people who are living out of their homes and families but it is more required by people who are not adept in cooking and cannot invest time in doing so. However, it is completely different for the young population who wants to focus more on their career or study and spend less amount of time preparing food or spending time in fine dining restaurants. Another aspect is that, they cannot afford fine dining restaurant every day and therefore, the affordable price range of Taco Bell is another value proposition for this segment of population.As a result, Taco Bell should concentrate more on innovation and how it can introduce new variants of Mexican food in the quick service format. The target market should be tech savvy in nature in order to use latest apps launched by Taco Bell since nowadays people are more inclined to order food online as well.Thus, marketing should also be done in the proper social media platforms where they are available.

Branding

            Taco Bell has always offered superior products with differentiation, and therefore, it should continue with the strategy of product differentiation. It would enable it to devise a pricing strategy, which can command a premium over the traditional fast food products. Moreover, since it is planning to operate in the technology segment through apps and online delivery with the latest innovations it has the leeway to charge a premium from consumers. Branding is an aspect which can be a game changer for Taco Bell, especially in the market segment where it wants to operate. Branding can be done in several stages and Taco Bell needs to reach the stage wherein there is considerable brand recall for its products. It has always used creative means to put forward its brand communication plan and same needs to be repeated for its new product launches as well. Taco Bell has established its brand and loyalty among its regular customers. However, it has to be understood that quick service restaurant customers form a cult and they are all part of a coterie. Therefore, Taco Bell needs to penetrate that cohort of food enthusiast and establish its brand. Once it is established, then there will be word of mouth publicity for the brand. Taco Bell marketing campaigns should focus on establishing closed groups in the social media platforms so that the food enthusiasts can discuss among themselves and share ideas, which involve Taco Bell’s products. Moreover, they need to associate itself with an iconof the contemporary period in order to create the buzz among its target customers(Holder, 2017). These methods of branding have been previously used by Taco Bell successfully, and this time also they can come out with flying colors in order to establish a strong brand for its products. They have to reach the stage of brand recognition in order to create an impact in the segment of fast foods. Promotion is another crucial aspect for the success of any product. Therefore, Taco Bell needs to carefully develop its marketing plans and distribute its resources judiciously in order to have a maximum impact on its customers. Moreover, promotions should be planned in such a way that they are well directed towards its target audience.

Product Positioning

            Distribution channel for the new consumer segment also has to be decided. Taco Bell had leveraged word of mouth marketing to sell initially.However, this strategy might not work this time since Taco Bell needs to ramp up its operation to attain economies of scale. However, consumers might be fans and followers of a particular club or player, which can be leveraged during marketing campaigns. The best mode to reach out to these customers would be through the retail outlets. Traditional retail distribution model might have been a barrier in the initial days since Taco Belldid not have enough money to set up stores at that time but now it has considerable credibility and recognition with fundsto establish it stores at every corner of the country(“Restaurant supply chain solutions, LLC - home page,” 2017). Therefore, it can now go through the traditional retailer route for its products. Product positioning is one of the most crucial aspects of branding and launching a new product. Since Taco Bell’s products are heavily focused on retailers it need to position it in a balanced manner so that consumers feel the aspirational value of the product as well as its functional value. Aspirational value is a key aspect of product positioning for Taco Bell since they are planning to charge a premium for their products. The product should not be positioned as an affordable one rather the different qualities of the food items need to be highlighted. Brand communication is an important aspect of new product launch since the product is going to be launched under the same brand name. Moreover, since the delivery will also be done throughonline mediums there is a need to reach out to the tech savvy customers or make them aware of the technological innovation through participating in food magazines or advertising in them. They can even reach out to office goersthrough various corporate tie ups and open a store in the large corporate premises. If the product is positioned as too complicated and have a high lag time for preparation then it can disrupt the prospects of the future growth of the product. Therefore, it needs to be positioned in such a manner so that people feel the product to be a necessity. Moreover, it needs to be closely integrated with the fun activities in order to attract the younger generation. Hence, this will create a strong brand recall for the product together with increased sales figures. The new food items should be easily available to the customers as well through the retailer chain. Availability is one of the prime drivers of consumption, and therefore, supply chain has to be given special importance.Taco Bell has always produced quality and fashionable food menu, which has an aspirational value for its customers. The trend needs to be maintained in the new product launches as well since it has the scope of increasing its revenue.

References

Holder, T. B. I. (2017, January 10). Taco Bell® exposes the naked chicken Chalupa. Retrieved March 4, 2017, from https://www.tacobell.com/news/taco-bell-exposes-the-naked-chicken-chalupa

Restaurant supply chain solutions, LLC - home page. (2017). Retrieved March 4, 2017, from http://www.rscs.com/Public/Members/MembTest.aspx

Roper, C., Samikkannu, D., & O’Rourke, J. S. (2012). Taco Bell Corporation: Where’s the Beef? Journal of Organizational Behavior, 5,Retrieved from https://www.researchgate.net/publication/269279703_Taco_Bell_Corporation_Where’s_the_Beef

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