‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
Department of Business Administration
College of Administrative and Financial Sciences
Assignment 1
Marketing Management (MGT 201)
Due Date: 14th January 2023 @ 23:59
Course Name: Marketing Management
Student’s Name:
Course Code: MGT201
Student’s ID Number:
Semester: 2nd
CRN:
Academic Year:
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of 15
2022-23
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
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The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for
poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
1.
2.
3.
Recognize an understanding of the overall marketing concepts, goals and strategies within the context of
organizations goals and strategies. (CLO-1)
Demonstrate the ability to formulate marketing strategies that incorporate psychological and sociological
factors which influence consumer’s decision.. (CLO-3)
Use effective and collaborative interpersonal skills to carry out scientific analysis of consumers’ needs and
wants to formulate a marketing Plan. (CLO-5)
Part-A:
Case Study
Max Marks-7.5
Read the Chapter Case Study “The Coffee Wars” from Chapter No- 2 “Developing Marketing
Strategies and a Marketing Plan” Page: - 58 and 59 given in your textbook/E-book –
“Marketing” (8th ed.) by Dhruv. Grewal and Michael Levy (2022) and answer the following
Questions:
1. Perform a SWOT analysis for Starbucks and Dunkin’ Donuts. Based on your analysis, in
which company would you invest? Justify your answer.(2.5 Marks)
2. Which growth strategies have been pursued by Starbucks and Dunkin’ Donuts in the past?
Which strategies do you believe will be most successful for the two firms in the future? Why?
.(2.5 Marks)
3. Which marketing metrics would be most helpful for an executive in charge of developing
new products for a coffee chain? .(2.5 Marks)
Part-B:
Critical Thinking
Max Marks-7.5
Reading required: - Read Chapter 1, 3 and 6 carefully and then answer the following questions
based on your understanding.
1. Based on the differences discussed between needs and wants in Chapter-1, when companies
that sell coffee and develop their marketing strategy, do you think they concentrate on
satisfying their customers’ needs or wants? If yes how? What about a utility company, such
as the Saudi Electricity company? A humanitarian agency, such as King Salman
Humanitarian Aid and Relief Center? Critically examine. Chapter-1. (2.5 Marks)
(Minimum 150 words)
2. As an intern for Starbucks, you have been asked to develop a social media campaign for a
new latte. The objective of the campaign is to increase awareness and trial of this new line.
Use the listen-analyze-do framework discussed in Ch-3 to outline a new campaign.
Chapter-3 (2.5 Marks) (Minimum 150 words)
3. You are planning to go for a Thursday night outing at a fine restaurant with your friends.
When evaluating different alternatives, how you can differentiate between the universal set,
the retrieval set, and the evoked set discussed in Chapter-6. From which set of alternatives
point of view, most likely you would choose the restaurant? Explain.
Chapter-6 (2.5 Marks) (Minimum 150 words)
Important Notes: 
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For each question, you need to answer not in less than 150 Words.
Support your answers with course material concepts, principles, and theories from the
textbook and scholarly, peer-reviewed journal articles etc.
Use APA style for writing references.
Good Luck
Answers
Part-A
1.
Starbucks
Starbucks Coffee Strengths (Internal Strategic Factors)
internal factors that the company can use as strengths to address weaknesses and differentiate
the company from competitors to protect.
1. Strong coffee and cafe brand image.
2. Efficient capabilities to manage a global supply chain of coffee and related materials.
3. Moderate diversification across various subsidiaries and products, including
commodities.
Starbucks Weaknesses (Internal Strategic Factors)
internal factors that reduce or limit the efficiency of the canteen operation.
1. Higher prices compared to some competitors
2. Dependence on third-party distribution channels for some products
3. Potential for negative perception among some consumers due to its large size and
global presence
Opportunities for Starbucks Corporation (External Strategic Factors)
External factors that provide opportunities for business growth and development.
1. Further expansion into developing markets.
2. Further business diversification to include activities related to food, beverages and
merchandise.
3. Increasing interest in sustainability and socially responsible practices
Threats to Starbucks (External Strategic Factors)
External factors that reduce or limit business performance.
1. Competition from cheap coffee vendors
2. Mistake of names, design or recipes
3. Independent coffeeshops -Movements
Dunkin’ Donuts
Dunkin Donuts Strengths addresses the key aspects of your business that give you a
competitive advantage in the marketplace. Some important factors in a brand's strengths are its
financial position, experienced employees, unique products and intangible assets such as brand
equity. Below are the strengths of Dunkin Donuts SWOT Analysis:
1. Dunkin Donuts is one of the world's largest donut, fast food and coffee restaurant
chains.
2. Dunkin Donuts has strong brand loyalty among its customers.
3. The brand offers more than 1,000 types of donut.
4. Dunkin Donuts is popular for a range of baked goods such as cakes, bagels, muffins,
cookies etc. and hot beverages such as coffee, tea.
5. Dunkin Donuts has more than 10,000 locations in more than 30 countries.
6. He is one of the most experienced players in the industry since its inception in 1950.
7. The brand is associated with various sports teams through sponsorships.
8. Dunkin Donuts has effective marketing and promotional strategies through television
advertising, print ads, online ads and digital marketing.
Brand weaknesses are specific aspects of your business that you can improve to further
strengthen your position. Certain weaknesses can be defined as characteristics that the
company lacks or that competitors are better at. These are the weaknesses of Dunkin Donuts
SWOT Analysis:
1. Competition from other international restaurant chains means Dunkin Donuts has
limited market share growth.
2. Due to its marketing actions, the company had problems in some
Locations.
Opportunities for each brand can include areas of improvement to grow their business. Below
are the opportunities in Dunkin Donuts SWOT Analysis:
1. Dunkin Donuts may expand its presence in new countries and regions of the world.
2. The company may also introduce low-calorie snacks.
3. Increasing the disposable income of people in developing countries can boost the
brand.
4. Increasing your reach through effective online marketing can increase Dunkin Donuts
sales.
Threats to any business can be factors that can negatively impact your business. Some factors
like increased competitive activity, changing government policies, alternative products or
services, etc. They can be threats. The threats in Dunkin Donuts SWOT Analysis are as
mentioned:
1. Health-conscious people who prefer not to eat fast food.
2. Competition, including from other brands, as well as local coffee shops and bakeries,
may affect Dunkin Donuts' business.
3. The increase in raw material costs, changes in government policies, etc. can affect your
sales.
Based on this analysis, I will invest in Starbucks because although it was founded 20 years
after Dunkin' Donuts, Starbucks has grown rapidly into a much larger company. In fiscal 2017,
Starbucks had sales of over $22 billion, while Dunkin' Brands had sales of over $860 million.
2.
Dunkin' Donuts Strategy
Dunkin' Donuts attempted to enter the market by building customer loyalty. He has also
continued product development and introduced coffee products previously only available in the
donut market.
Dunkin' has great potential for success in high growth countries such as India and Brazil. Their
weakness is the lack of growth and expansion, so by developing the market they can reduce or
eliminate this weakness and become a world power.
Starbucks Strategy
Starbucks continues its strategy of growth and market penetration by expanding into global
markets and opening stores worldwide with more than 24,000 stores in 70 countries. Starbucks
should succeed in its efforts to diversify and develop its products. With the successful launch
of new non-coffee beverages, Starbucks is able to expand its product line to include healthier
juices and smoothies, as well as decaffeinated beverages. Through diversification, they can
introduce new products, adapted to cultural preferences for food and beverages, in new markets
in different countries.
3.
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The most useful marketing metric for an executive responsible for developing new
products for a coffee chain is customer loyalty. It is stated that “metrics can help to
measure the effectiveness of the product in relation to the customer problem and to
make important decisions related to both the product and the business aspects of the
startup” (Shanbhag & Pardede, 2019, p. 283). The main reason why customer loyalty
will be the most plausible metric is that new entrants with established brands will
continue to enter the coffee market. This means there will be a wide range of
companies offering quality coffee, and as coffee products can only get better, customer
loyalty to a brand will be the biggest determining indicator of market share.
Exploiting user generated content, People love to post about their #1 brands and the
organizations they serve. Foreknowledge Factory found that Instagram posts, including
coffee, have increased by 4,500% since 2015, and these coffee posts are a pattern
shared around the world. Luckily, this means your online coffee shop can benefit from
your customers' coffee contributions. Site visitors trust reviews from
Offer incentives and rewards for stay behind, Build loyalty by treating your regular
customers in unexpected ways. If customers stick to your image, they're likely to
recommend it to their peers, rave about it through web-based media, and be a loyal
source of income. To get them to buy more espresso, increase the limits on rare items
or rewards once they buy a certain amount of .
Express the personality of your coffee brand, Your image conveys the qualities and
character of your organization, leaves behind but also a special connection Viewers
who associate images and articles with your company. Choose how you want your
business to be remembered online. Set yourself apart from the competition by choosing
a strong and essential brand character.
Part-B
1. Companies that sell coffee and develop a marketing strategy tend to focus on satisfying the
needs and wants of their customers. A customer's needs are basic requirements that must be
met in order to satisfy their fundamental desires or necessities. For example, a customer may
need a caffeine fix in order to stay awake and alert, and a coffee company could satisfy this
need by offering a wide range of high- quality coffee products. On the other hand, a customer's
wants are the specific ways in which they prefer to have their needs satisfied.
For example, a customer may want a particular type of coffee bean or roast, or they may want
their coffee served in a certain way. Companies that sell coffee can satisfy their customers'
wants by offering a variety of options and customization options. A utility company, such as
the Saudi Electricity Company, would also focus on satisfying their customers' needs, but these
needs would be more functional in nature.
Explanation: For example, customers may need reliable electricity service in order to power
their homes and businesses, and the Saudi Electricity Company could satisfy this need by
providing consistentand reliable service.
A humanitarian agency, such as the King Salman Humanitarian Aid and Relief Center, would
also focus on satisfying their customers' needs, but these needs would be more basic and
fundamental in nature. For example, customers may need food, shelter, and medical assistance
in order to survive and thrive, and the agency could satisfy these needs by providing aid and
assistance to those in need.
2. To develop a social media campaign for a new latte using the listen - analyse do framework,I
would follow the following steps. Listen: First, would gather data and insights about the target
audience for the new latte. This could involve conducting market research to understand their
demographics, preferences, and behaviours, as well as monitoring social media to see what
people are saying about the new product and related topics.
Analyze: Next, would use the data and insights gathered in the listen phase to identify key
themes and trends. This could involve analyzing customer feedback, identifying common pain
points or needs, and identifying opportunities for the new latte to differentiate itself from
competitors. Do: Based on the analysis, I would develop a social media campaign that
leverages the key themes and trends identified in the analyze phase. This could involve
creating social media posts that highlight the benefits of the new latte, such as its unique flavor
profile or ingredients, and using targeted advertising to reach the desired audience. The
campaign could also involve using influencer marketing to reach a wider audience and using
contests or giveaways to drive engagement and create buzz around the new product.
Explanation the agency could satisfy these needs by providing aid and assistance to those in
need.
3. The universal set is a complete set of all possible alternatives that you can consider. For
example, in the context of choosing a restaurant for a Thursday night, a universal set would
include all possible restaurants that could be considered, regardless of location, price, or
cuisine type.
The recovery set is a subset of the universal set that is actively considered by the decision
maker. In the context of choosing a restaurant, the recovery set would only include those
restaurants that meet certain criteria, such as a certain distance from the decision maker's
location, a certain type of cuisine, or a certain price range.
The referenced set is a subset of the referenced set that is actually considered by the decider. In
the context of restaurant selection, the enabled set would only contain restaurants that the
decision maker is actively considering and comparing.
I would most likely choose a restaurant from the reference set as this set only contains the
alternatives that I am actively considering and comparing to myself. This would allow me to
focus my attention on fewer options and make a more informed decision by carefully weighing
the pros and cons.
References
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Dhruv Grewal and Michael Levy (2022) “Marketing” (8th Edition). McGraw-Hill
Education, Digital Version: ISBN13: 978-1-260-71743-3.
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Levy (2022); Marketing” (8th Edition) by Dhruv. Grewal and Michael.
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Celik, O. (2019). Comparing to Techniques Used in Customer Churn Analysis. Journal
of Multidisciplinary Developments, 30-38.

Neely, A. (2018). Gaining Customer Experience Insights That Matter. Journal of service
research