Through strategic orientation companies are better equipped to generate profit and compete successfully because they better understand the “Big Picture” of what they have to offer. 3. Advertisement ; A paid form of non-personal presentation of ideas, goods, and/or services by an identified sponsor. Ex: A commercial for NIKKEI tennis shoes would be considered an advertisement because it is marketing a good (tennis shoes) by an identified sponsor (NIKKEI). 4. SOOT Analysis – SOOT analysis is identifying the Strengths, Weaknesses, Opportunities, and Threats of a marketing campaign.
Ex: By doing a SOOT analysis of a previous COKE commercial the Coke Co. Can determine what things to change, keep, or maybe eliminate in their next commercial or campaign. 5. Roll – The ROI, or Return on Investment is important in determining whether the revenue generated by an ad exceeds the cost of producing it. Ex: Spending $4. 2 Million to travel to Japan and shoot a commercial for a small time American Shoe Company that might only gross $2. 5 Million dollars a year would show that the ROI would not be beneficial. 6.
Campaign – Clients hire advertising agencies to create advertising campaigns to remote their company and/or brand. Ex: A small business looking to grow may hire an advertising agency to help them develop a campaign that will broaden their market. 7. Market ; A market is the present as well as the prospective consumers for a Ex: A company such as NIKKEI has a very large market because they create shoes that are suitable for all ages, however their market is narrowed in the fact that their shoes aren’t always financially attainable for people with lower incomes. 8.
Direct Marketing – Direct Marketing is marketing a brand’s identity through mailers, leaflets, and brochures. Ex: The ARMY directly markets to people between the ages of 18-25 who are looking to have a different lifestyle. They feature adventurous settings and an air of prestige in all of their advertisements, which narrows the demographic that will be more likely to respond to these advertisements. 9. Logo – A logo is an image or a symbol that represents a company. The logo usually becomes synonymous with the brand and is enough to portray the company it represents.
Ex: Logo’s that have become Synonymous their brands are seen in companies such as NIKKEI swoosh, McDonald’s with the golden arches, and even Cutbacks with the green Siren that appears on every Cutbacks coffee cup. 10. Media – Print, television, radio, Internet, billboards, that help in communicating with audiences on a larger scale. Their reach, quality and affect differ from each other. Ex: A commercial for SHEETS and a billboard for SHEETS are both media presentations but will reach different audiences and usually market different things.
A commercial would market enticing food to get you out of the house whereas a billboard would market gas or coffee to get you to pull over and “re-fuel”. 1 1 . POP – Point of Purchase Advertising refers to the promotion tools that are splayed in shops stores and malls. These displays catch the attention of customers right when they are making purchases in a shop. Ex: A point of purchase sign located within a Macy’s store advertising their new fall catalog that is now available and can be purchased at checkout. Directs your attention to the product and allows you to purchase it without losing your place in line. 2. Promotion – Promotion refers to the activities that are undertaken to push sales and popularize the product. Ex: Cutbacks offering to supply free coffee for a business meeting is easy promotion cause it allows more people to try out the product without having to actually pay purchases, increasing the companies sales. 13. Public Service Announcement – A Public Service Announcement is made in the general interest of the public using media tools such as radio, television and print. Ex: A AS for AIDES would raise awareness to the reality of the disease and increase knowledge within the general public. 4. Slogan – A slogan is typically a combination of catchy and memorable words that represent the company’s message and identify the brand. Ex: The slogan for Nikkei IS, “JUST DO IT”. 1 5. Target Audience – The Target Audience is the most probable group of customers for a product based on age, religion, and status. Ex: The Target Audience for a “Hannah Montana” video release would be a younger demographic focused on personal appearance. 16. Product Management – Product management is made up of four things, the Product, Price, Promotion, and Placement. Ex: A G. L.
Joe doll that is reasonably priced, marketed in a commercial to younger boys, and is sold at TOYS-R-US. 17. Communication Concept – Communication Concept, also known as Brand Management is made up of the Consumer, Cost, Communication and Convenience. Ex: This is based on a more personalized level with the consumer, so marketing a doll that may not be the same quality as the 6. 1. Joe doll, but that someone can go out and buy with their allowance money. A more personalized relationship can be formed with the consumer because a direct promotion for the market can be made. 18.
Mass Markets – Mass Markets are made up of three sections, the early adopters of a product, the late adopters, and the 99% of people who fall in between these two sectors. A niche must be created in the middle to obtain sustainability. Ex: Marketing to pod owners who continually update to newer models. They show consistency and are always looking for and willing to purchase the newest models. 19. Account – An account refers to the client or the employer of an agency. Ex: A landscaping company looking for a new company logo or slogan that hires an advertising agency for help. Ewing the advocate of the consumer, and being the guardian of the brand. Ex: Being able to know the consumer inside and out and being able to guide the campaign in the right direction to result in something that is both beneficial for the linen and the consumer. 21 . Brainstorming – Brainstorming is when the advertising agency meets and shares ideas to help come up with creative concepts. Ex: Being able to combine ideas from PR, sales, and advertising to create a new concept or appearance for the product. Revamping the Wend’s logo to a more modern symbol than the original icon. 2. Concept – A concept is the center idea that gives shape to the entire campaign. Ex: Commercials for the Olympics are centered on physical excellence and the super human ability. 23. Launch – A launch is the introduction of a new product or service. Ex: A launch party for Three Olives Pomegranate Vodka, featuring new drinks and free giveaways to get people to try the new line. 24. Print Advertising – Print advertising can be seen in newspapers, magazines, or catalogs and contain elements such as copy, and/or pictures.
Ex: A full-page ad in a magazine for Giorgio Armin’s Aqua Did Gee containing a picture of the cologne and perhaps even a small sample. 25. Opportunity Cost – The value of the next best alternative to a particular product. Ex: A child’s toy available at a dollar store may be cheaper, but the quality may not be s great compared to a similar toy at a higher priced toy store. The company must market the value of the toy to the consumer rather than the price. Industry Analysis Coffee Industry has been booming for years, but recently many new players have come onto the scene such as Caribou Coffee, Cutbacks Coffee Co. And even Dunking’ Donuts. Each company offers numerous different blends, flavors, and roasts, but each claims their own to have different qualities that appeal to different markets. The veteran of the bunch is actually Dunking’ Donuts, which has been serving coffee, and various baked goods since 1950. The company was founded by Bill Rosenberg and has grown from five locations in 1954 to over 6,000 locations in 30 different countries. It is considered the largest coffee and baked goods chain in seemingly monopolized the industry until Cutbacks Coffee Company came along in 1971.
Their mission:”To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time. “Howard Schultz Joined on with Cutbacks in 1982 as director of retail operations and began direct marketing to fine restaurants and espresso bars. By 1995 Cutbacks had developed into a full-blown coffee company tit its own line of glassware, coffee mugs, and even in store music sales. Today there are over 5,000 Cutbacks locations in numerous different countries and a booming following of customers.
Their target audience consists of a broad spectrum of Music, Art, and Coffee lovers which all can convene in a warm, musical atmosphere. Last but not least, the new comer to the scene, Caribou Coffee, which was established in 1992, based on the idea:” … That if true passion, hard work and excellence go into an endeavor, the outcome will be a quality experience, and therefore rewarding. Although a much smaller company, only comprised of around 500 locations, Caribou Coffee strives to create a unique experience for coffee drinkers that has that “aha moment” as they describe it.
So if these three companies are obviously all selling coffee, why do they have very passionate followers, who would seemingly rather stop drinking coffee than go to one of their competitors to get their morning Jolt? Dunking’ Donuts, like many other current companies are showing an enormous interest in the economic situations of their consumers. One of their current promotions is a “Free Turbo Shot” in any iced coffee purchased. Not only is the word FREE enticing it also offers some sort of financial relief and suddenly becomes a bargain in the eyes of their consumers.
They are also very well known for their advertisements throughout the years, whether it is through the media in their numerous television commercials, or even in their print advertising in multiple magazines and coupons in newspapers. This is one of their key selling points over Cutbacks because Cutbacks as a company believes in word of mouth advertising rather than actual advertisements. Another campaign currently being run by Dunking’ Donuts is for one lucky customer to create the company’s next donuts.
Not only are they getting their customers involved in creating the donuts, they are allowing anyone with access to their stores and website to vote on the numerous entries in the contest. Although this may somewhat alienate a small portion of their clientele by creating a donuts that not everyone likes they are able to take the mass market and narrow it down to what a large portion of their consumers are interested in seeing as a product. Although this is a great concept they are not the only company willing to include their consumers in their product production.
Cutbacks has a strong hold in many aspects of the coffee industry due to their intense strategic orientation as well as their product management. The company is not only very interested in what their customers have to say about their products, but also are interested in what their own employees have to say. They do frequent coffee and tea sample-tasting to develop not only buzz about the launch of their new products, but to get feed back on what should stay the same and what needs to be changed. Through this communal version of brainstorming Cutbacks can better understand their consumers and their employees needs.
Another huge selling point green circle boldly stating CUTBACKS COFFEE around the picture of a singing Siren is known throughout the world. It has become one of the most recognized symbols in the world and is a great advertisement in and of itself. Each Cutbacks store also utilizes point of purchase marketing very efficiently. Throughout every store there are numerous signs and posters advertising upcoming sales on merchandise, new product lines, and even current products coupled with enticing pictures of not only their beverages but their delectable treats as well.
Through something Cutbacks likes to call the “Third Place” they are able to create a peaceful environment away from work and home that people can come to relax, enjoy great music, and even better coffee. Caribou Coffee is somewhat of a different breed. Dunking’ Donuts focuses on the fast paced grab-n-go lifestyle, Cutbacks is centered on tranquility and relaxation, but Caribou Coffee is all about adventure and exploration. Their founders actually created the company thanks to a trip through the Alaskan Wilderness, after a strenuous climb to the summit of a mountain.
Their belief is that excellence is a reduce of hard work, and that life is too short for anything else. Caribou Coffee is not necessarily the cheapest coffee company around, but they definitely offer financially affordable drinks for people to enjoy. One of their current promotions is “Set Your Wild Free”, which is centered on their most recent launch of a line of “8 Delicious Wild Coolers”. It sticks to their adventurous theme as well as giving a little extra enticement to their new product line.
So if these companies are doing so many things right through community involvement, Public Service Announcements, marketing their products, and creating a unique, and individualistic feeling in each store, what modifications can be made to their marketing tactics? First off Dunking’ Donuts has proven to have longevity in their product due to their willingness to adapt and grow with their surroundings. They could however obtain an account planner in order to help them better understand other demographics that who they are currently marketing to.
Maybe the inclusion of music selections in their stores, or even adding a few health conscious choices to their menu would boost their sales and increase their return on investment. Cutbacks on the other hand who does feature in store CD selections as well as health conscious drink options needs to focus more on the financial side of their business. They need to begin taking into account that the economy is in a slump, and even though they have a very marketable product, it will get them nowhere if the common man can’t afford to buy they products let alone consume them.
I’m sure if they took a deeper look into their pricing and the actual cost of their product a happy medium could be obtained that would still benefit the company and the consumer as ell. They also need to develop stronger marketing concepts that allow them to have more outside advertisements such as billboards, commercials, and maybe even coupons, which seem to be unheard of to the Cutbacks brand. Finally, Caribou Coffee is actually in a great position to market their products because they have a great argument for opportunity cost to their consumers. They have a highly comparable audience than the Cutbacks brand.
Marketing to the “every day Joe” will give them the opportunity to pull in people that may have never tried their coffee before but re willing to do so because of the price difference. Once discovering that their product is ironically similar to Cutbacks in quality, but is more financially acceptable they are more likely to return as well as spread the word to others. In turn helping to increase revenue and benefiting the companies’ sales and popularity. In closing all three companies do a wonderful Job of representing the coffee industry and have made millions marketing themselves as household names throughout the world.
