Why is it important for the marketing department to have good relationships with other departments at Highlands ?.. Therefore, the first step in the marketing process is to have a clear
Overview of the marketing process to reflect the key roles of marketing
Overview of the marketing process wd 2 The key roles of marketing 8 III) An analysis of the role and responsibilities of marketing function in the
The marketing process is a structured approach that helps businesses effectively plan, analyze, implement, and adjust their marketing strategies to reach potential customers This process typically involves five key steps that guide companies in promoting their products or services efficiently.
Step 1: Understand the marketplace and customer needs
Understanding your marketplace is crucial for effective marketing, as it involves identifying customer needs and wants Key questions to consider include who your customers are, their income levels, purchasing power, and potential spending on your products or services Customer demands drive market dynamics, facilitating exchange relationships between customers and businesses To meet this demand, businesses provide market offerings, which encompass various goods and services designed to satisfy customer expectations.
A local coffee shop brand undertakes market research to gain insights into the needs, preferences, and purchasing behaviors of its target customers, analyzing factors such as age, gender, income, and lifestyle This valuable information enables the business to develop products tailored to the specific demands of its target market.
Step 2: Designing a customer — driven marketing strategy
In marketing management, selecting target customers and defining a compelling value proposition are crucial steps Marketers employ the STP model—segmentation, targeting, and positioning—to create customer-centric strategies After identifying the target audience, it is vital to effectively position and differentiate the product, enabling it to stand out from competitors by emphasizing the unique value it offers, ultimately fulfilling customer needs.
To effectively shape their marketing strategy, businesses must choose a guiding concept from five key approaches: the production concept emphasizes affordability and availability, while the product concept prioritizes quality, performance, and innovation The selling concept highlights the necessity of extensive promotion to drive sales, whereas the marketing concept centers on meeting the needs and wants of target markets Finally, the societal marketing concept advocates for sustainability, urging businesses to address both immediate and long-term needs of customers and society as a whole.
A local coffee shop brand employs a customer-focused marketing strategy informed by market research, emphasizing product differentiation, outstanding customer service, and effective promotional tactics By innovating new product formulations, the brand sets itself apart, while also enhancing customer experience through special discount campaigns and seamless online communication and delivery options across various platforms.
Step 3: Preparing an integrated marketing plan and program
After establishing a marketing strategy, the next crucial step is to develop a comprehensive marketing plan This plan details how the organization or brand intends to create customer value across various channels and platforms.
Integrated marketing programs are essential for businesses and organizations, as they provide comprehensive strategies that effectively communicate and deliver value to selected customers By leveraging various elements of the marketing mix, brands can enhance their value proposition and connect with their target audience Understanding the marketing mix is crucial for optimizing these efforts.
The marketing mix encompasses the essential tools, known as the four Ps, that a company employs to execute its marketing strategy Firstly, the Product refers to the goods or services offered, which must be designed to meet customer needs effectively Secondly, Place involves positioning the product in accessible locations to ensure it reaches customers easily Thirdly, Promotion entails the development of impactful promotional strategies and channels to attract a larger customer base Lastly, Price focuses on setting competitive pricing to make the product affordable for consumers.
The local coffee shop brand develops a comprehensive marketing strategy that combines both traditional and digital channels to effectively engage its target audience This plan incorporates social media advertising on platforms like Facebook and Instagram, along with email marketing, influencer partnerships, and sponsored events Additionally, it features a well-defined value proposition and messaging that aligns with the interests and preferences of its audience.
Customer relationship management (CRM) is the overall process of interacting with customers to build long-term sustainable relationships
Successful marketers understand that customer acquisition is challenging, but a positive relationship with a brand encourages repeat purchases and additional sales Satisfied customers are also likely to recommend products to others, leading to increased profits and reduced costs Consequently, brands strive to cultivate long-term customer relationships to enhance brand preference and loyalty.
To enhance customer relationships, businesses must focus on boosting customer satisfaction while minimizing dissatisfaction compared to expectations This involves increasing awareness of customer value by emphasizing the benefits and features of products and services Effective brand management and marketing communications across multiple channels are essential for attracting customers Additionally, fostering strong partner relationships, including those with supply chain and channel partners, agencies, and influencers, is crucial for creating value for customers.
This local coffee shop brand enhances customer loyalty through holiday discounts and tiered membership cards—silver, gold, and diamond—based on spending To cultivate lasting relationships, the brand actively gathers customer feedback to refine its products and services.
Step 5: Capturing value from customers
Once the first four steps of the marketing process are complete, it is time for the company to capture value from customers
Marketers aim to enhance customer equity as it serves as a key indicator of financial success By fostering brand preference among target customers and cultivating long-term relationships, brands can secure repeat purchases and boost customer loyalty A higher customer equity leads to increased profitability, ultimately elevating the company’s value in the marketplace along with its products or services.
As a result, the marketing process allows customers to gain value from brands and products, while brands can capture value from customer relationships
After effectively executing the initial four steps of the marketing process, this coffee shop has significantly increased its revenue and profits Additionally, the brand has capitalized on opportunities for cross-selling and upselling new products, while also attracting numerous new customers through its loyal clientele.
2 The key roles of marketing
How does it support the broader organizational context of vision, mission and purpose? 17 3 Why is it important for the marketing department to have good relationships with
Highlands Coffee was established in 1999 with the vision of becoming a leading Vietnamese coffee brand, utilizing locally sourced raw materials to celebrate the country's unique coffee culture Through effective collaboration among its departments, Highlands aims to achieve its mission and fulfill its vision, serving the Vietnamese community with pride.
"building the pride of Vietnamese brands: Past and present"
For nearly 20 years, this renowned coffee brand has been dedicated to serving the Vietnamese community by sourcing the finest ingredients from Vietnam's most famous regions Hand-selected fresh tea leaves and coffee beans undergo rigorous quality control, ensuring that millions of cups of authentic Vietnamese filter coffee and rich tea are prepared daily, delivering consistent taste and quality.
Highlands Coffee upholds its core values, including pride in Vietnamese culture, a commitment to community sharing, and a passion for excellence The company emphasizes respect and integrity in business practices, fosters a spirit of cooperation, and prioritizes client care By analyzing the interactions between the marketing department and other teams, Highlands Coffee ensures a customer-centric approach, which has been key to achieving its goals in recent years.
3 Why is it important for the marketing department to have good relationships with other departments at Highlands?
Highlands has established itself as one of Vietnam's leading coffee brands due to the strong collaboration among its departments This teamwork ensures the delivery of high-quality products at competitive prices, tailored to meet customer preferences Effective communication from the marketing department is crucial in relaying customer insights to other teams, enabling the company to fulfill its commitment to customer satisfaction.
19 effective marketing campaign, the marketing department needs to develop close links with other functional departments
V) A critical and evidence-based analysis of the internal and external environment in which the marketing function of organization X operates
-Marketing environment encompasses all the internal and external factors that drive and influence an organization's marketing activities
To have a place In the hearts of customers High-priced segment
Many factors contribute to attracting Not yet popular in rural areas
Customers Unstable HR management system
Large market share Still uses plastic items and plastic bags for
A network of stores with convenient locations customers
A large and promising market with a lot of * Economic risk room for growth * A lot of competitive pressure
The Vietnamese coffee culture l1 Strengths
To have a place in the hearts of customers
Highlands Coffee, founded in 1999, began its journey by selling instant coffee and swiftly became popular for its high-quality brews and inviting atmosphere.
In 2010, Jollibee Foods Corporation, a leading global food service company, acquired Highlands Coffee, providing it with essential resources and expertise for expansion.
Highlands Coffee stands as Vietnam's leading coffee shop chain, boasting more than 500 locations across the country Renowned for its diverse selection of coffee beverages and food items, the brand is dedicated to promoting and preserving Vietnamese coffee culture.
Many factors contribute to attracting customers
1 High-quality products: Highlands Coffee offers Vietnamese consumers a product with high-quality coffee beans and ingredients that are carefully selected to deliver a delicious and safe taste
2 Cozy atmosphere: Highlands Coffee provides consumers with a cozy and relaxing atmosphere that creates a feeling of great comfort when enjoying coffee
3 Preservation of cultural identity: Highlands Coffee is always committed to preserving and promoting the traditional values of Vietnamese coffee, while also creating new products that reflect the national identity
Highlands Coffee, the leading player in Vietnam's tea and coffee retail market, strategically sold 49% of its shares to Jollibee Foods, a prominent global fried chicken chain This partnership significantly enhances Highlands Coffee's competitive edge in the industry.
Highlands Coffee continues to be the largest coffee chain in Vietnam with over
700 stores nationwide Highlands Coffee's market share is about 30% of the Vietnamese coffee market The 700 stores were formed based on a number of factors,
21 including the availability of vacant space due to the impact of the COVID-19 pandemic and the company's successful franchising strategy
Highlands Coffee's revenue in 2023 reached VND2,250 billion, up 5.6% from
2022 This is a higher growth rate than the overall growth rate of the Vietnamese coffee market (about 3%)
A network of stores with convenient locations
Highlands Coffee boasts a vast network of strategically located stores across the nation, providing a competitive edge in the coffee market Coupled with a strong brand presence and high consumer recognition, this accessibility ensures that customers can easily discover and visit Highlands Coffee outlets.
Its market expansion strategy has also been successfully implemented through franchising, which has reduced its risk and allowed the company to grow rapidly
Its multi-channel distribution strategy has also made it easier to reach a wider range of customers through popular channels such as supermarkets, convenience stores, and food delivery apps
Highlands Coffee is renowned for its exceptional drinks, particularly its coffee, which is crafted from high-quality, hand-selected beans The rich and robust flavor of Highlands Coffee has garnered immense popularity among Vietnamese customers.
Highlands Coffee also adjusts its menu to suit Vietnamese tastes For example, it has introduced a number of Vietnamese-inspired fast food items, such as banh m1 Awi ri f pr
When you visit Highlands Coffee, you are likely to be faced with the dilemma of not knowing which product to use, because Highlands Coffee offers a wide variety of
22 products, including coffee drinks, tea, food, and packaged products This gives customers many choices
While diversity in product offerings can enhance customer experience, it can also lead to overwhelming choices This abundance of options poses a challenge for Highlands Coffee in ensuring consistent quality across all its products.
Along with the above drawbacks is an advantage It can attract more customers and boost sales
Highlands Coffee is beloved by many for several reasons, chief among them being the exceptional quality of its beverages The brand meticulously selects high-quality coffee beans by hand, ensuring a rich and flavorful experience that resonates deeply with Vietnamese customers.
Second, Highlands Coffee also adjusts its menu to suit Vietnamese tastes For example, they have introduced a number of Vietnamese-inspired fast food items, such as banh mi
Highlands Coffee excels in catering to Vietnamese customer preferences, providing a competitive edge in the market The brand recognizes that Vietnamese consumers favor strong, bold coffee, and utilizes the traditional phin filter method to brew a rich, full-bodied cup that aligns perfectly with these tastes.
Vietnam is a developing country, and the average income is relatively low This means that many people in Vietnam cannot afford to pay the high prices at Highlands Coffee
In June 2023, Highlands Coffee increased its prices by 5-10% This was a smaller increase than the 10-15% increase that the company implemented in 2022 However, the 2023 increase still upset some customers
Highlands Coffee has recently raised its drink prices by 5-10%, with some items seeing increases of up to 12% Notably, the price of a medium iced golden lotus tea has risen from 45,000 VND to 49,500 VND, while a large phin coffee now costs 49,500 VND, up from 45,000 VND.
Not yet popular in rural areas
Highlands Coffee primarily operates in city centers, restricting its access to suburban customers and limiting its market reach This geographic concentration represents a significant weakness, hindering the company's ability to serve a broader segment of the Vietnamese population.