MKT101A Marketing Mix: Assessment 3 Marketing Policies Of MSM Cafeteria Answer

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Question :

Subject Code and Title
MKT101A - Marketing Fundamentals
Marketing Plan – Stage 3: Marketing Mix
1200 words (+/- 10%)
Learning Outcomes Addressed
  1. Describe the marketing concept
  2. Outline and apply the elements of the marketing process.
  3. Identify and explain the macro and micro environmental factors impacting the marketing of a business or industry.
  4. Demonstrate an ability to incorporate new trends to solve marketing problems and apply communication skills.


Well done! You are now in Stage 3 of your marketing planning process.

Mary, your marketing manager, is pleased with your effort and the dedication that you have put into the marketing plan so far. In this stage, you will be required to identify suitable marketing mix strategies for your chosen client, including identification of the three levels of the product, product mix and respective product portfolio covering its width, line and depth You will also identify and discuss key pricing and placement strategies, and promotional tools used by the business.

In Stage 3, you must also include a section that includes marketing recommendations for your selected business. Keep in mind all the micro & macro environmental factors and trends identified in Stage 1, as well as the buyers’ characteristics assessed in Stage 2 when developing the recommendations. At least four (4) recommendations should be included and these can be supported with examples of what you propose eg., website re-design, new logo, product re-design, Youtube video example, Facebook post example, advertising campaign etc., Where applicable you should also justify your strategy referencing key marketing principles covered in the subject.

Instructions- Stage 3

At this point, Stage 3, you must submit a word/text document which includes:

  1. Cover page including:
    1. Business name
    2. Student Identifier (name and number)
    3. Subject code and name
  2. Analysis of the current Marketing Mix variables that include applications of:
    1. Product strategy:
      • Identification/suggestion of the three levels of product
      • Identification/suggestion of the product portfolio (width, depth and lines)
  3. Pricing strategies
  • Application/suggestion of a t least 02 (two) relevant pricing strategies that may be used and associated terminologies/concepts.
  1. Placement
    • Identification/suggestion of a t least 01 (one) marketing/distribution channel strategy used and apply associated terminologies/concepts.
  2. Promotions
    • Identification and description of a t least 05 (five) promotional tools used by the business including relevant application of associated terminologies /concepts.
  3. Recommendations
    1. Identify at least 4 (four) marketing recommendations based on the situational analysis and applying key concepts and marketing principles covered in the modules. These recommendations should relate to any/or all of the elements of the marketing mix (Product, Price, Place, Promotion). You may also include discussion of the targeting, positioning and branding if changes are recommended.
  4. Reference list using APA 6th ed. style.

Submission guidelines

  • The presentation recommended for this assessment is REPORT FORMAT.
  • An executive summary is NOT required.
  • Use suitable headings and subheadings for the information presented, and page numbers should appear on each page of the document – ideally in either the header or footer.
  • All assessments are to be submitted to Blackboard. All work must be word-processed, spell-checked, grammatically acceptable, and professional in appearance.
  • The assessment submission should include the Similarity Report from Turnitin.
  • Assessments should not be written from a 1st person context, but rather from the 3rd person perspective. That is, “I, we, my, our” are not acceptable.
  • All claims and recommendations are to be supported by suitable and relevant marketing and/or theoretical principles and their relevant references.
  • The report should include a correctly constructed Reference List and accompanying in- text citations as per University guidelines (APA 6th ed. referencing style). Please see the
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Answer :



The assignment explains the different marketing policies of MSM cafeteria. The company's product strategy, pricing strategy, placements and promotions are widely described in the assignment. The product strategy explains the three levels of products which include core product, formal product and argumentative product. Portfolios of different products of the coffee shop are given. Different price strategy which includes the flexible price strategy, price bundling and loyalty discounts for the customers are thoroughly explained. Company’s promotion strategies which includes advertisement on the internet is widely discussed in the assignment.

Analysis of the current marketing strategies

The marketing procedures of the MSM Company have effective planning and strategies that could meet the company goals. As stated by Sharif et al. (2015), it includes the implementation of the new processes and techniques. Some of the strategies implemented by the company include the product strategy, the marketing price strategy, different placement strategy and effective measures for promotion. Some of these strategies are widely described below. Promotion measures taken by the company such as online deliver

Product strategy 

Currently MSM Company has faced several business threats from other major brands in the market; the company has re-assess many strategic decision which can give a tough competition to the other brands. As stated by Elia et al. (2017), the three level of products involves the core product which includes the different functions of the restaurant. MSM core product manages the outer atmosphere and ambience of the restaurant. This refreshing atmosphere makes customer fresh and attracts them to come again overtime. Second level is the formal product which is tangible part of the product and includes physical aspects and outer designing and decor of the restaurants. Few customers are more attracted in the outer decor of the restaurant and want the services to be neat and clean. The third and the last level of product is argumentative product which includes other subsidiary services. MSM has recently added the facility for their customers to call and reserve their own table and also included proper parking space outside the cafeteria. As mentioned by Hoogendoorn (2016), the companies have recently started different launching strategies for the product management. The launching procedures not only shorten time to market, they also help the business to grow in effective cost rate. For launching procedures the company has initiated online reviewing site where customers can provide their feedbacks, offer advertisement in the local newspaper. 

The company is more active on social media to grab the masses attraction and also encourages their customers to take pictures inside the cafeteria for more advertisements. As mentioned by De Villa et al. (2015), MSM company product portfolio mainly includes all coffee, desert items and snacks. The iced drink section includes iced chocolate of 630 ml, blue lemonade 600 ml, yogurt smoothie 630ml. Other hot drinks include espresso short black 350ml, and cappuccino 350 m and other green tea latte 430 ml.

Pricing strategy 

The price strategy of any cafeteria direct affects the profit of the company. MSM uses an effective price strategy to increase the spell of the cafe. As mentioned by Dosi et al. (2017), MSM makes Korean style brewed coffee which is unique in whole Sydney, this feature can gather a large number of customers.. For example the cafe charges more for table service, premium items and other specialized orders by minimizing the cost for the counter service. The company has recently added the features of internet service by delivering online orders, which is increasing the pricing factor for the company more. As mentioned by Bitektine & Haack (2015), menu provided by the company has a huge impact in the cost of the company. For example the company offers a complimentary drink for every order. 

Flexible pricing strategy is another important factor, the company lowers or raise the prices of certain items, in order to meet profit. It uses a menu format which is easy to change, in accordance with needs of the customers. Other factors included in this strategy are price bundling, loyalty discounts provided to the customers and complementary pricing strategies. As stated by Ivanov  (2016), MSM offers certain loyalty discounts for their regular customers. The customers who bring their own coffee cup are given discounts on the prices of the coffee.


The base of all marketing strategy is promotion and campaigning for that purpose the coffee shop needs to execute new type of ideas. As mentioned by Elshiewy et al. (2017) one of the marketing channel strategy used by the company is more and more advertisement on face book and other social Medias. Social media is one of the convenient ways to develop the business through location-based targeting. MSM has created their own face book account by adding all the necessary details into it. The company has appointed managers who target the people on the basis of their work status, educational background, local language and other personal interests. The profile or the company website provides an eye catching visual, which attracts the followers.


For any company to build their business it is important to have a correct promotional strategy. MSM use both online and offline methods for their promotion. The company generally relies on 5 promotional tools for the increase in the business. This includes the increase in reward programmers and loyalty discounts for the regular customers, buy one get one free benefit, the introduction of more combo packs, more advertisement on social media, and offering free wifi services to the customers. The company includes an electronic tally record for the regular customers and gives them coffee mugs as a reward. As mentioned by Sumner  (2018), the reward programmed makes the customers feel appreciated and can increase their regular visit with in the coffee shops. Buy one get one free is a straightway process, which increases the spell of the shop by attracting new customers. This process includes the purchase of the particular beverage and gets one free.

Five promotional tools of MSM

Figure 1: Five promotional tools of MSM

The company sells their high priced food products by combining with a latte and espresso coffee to increase the sale. It is also an effective way to encourage the customers to spent time on the register. Social media can enhance a particular business sells by more and more advertisement of the products. MSM takes the advantages of various social media outlets to promote the products and increase their market rate. Free wifi services inside the coffee shops give extra advantage to the customers of the coffee shops. MSM has implemented this policy to encourage the regular visit of the customer and keep them engaged in the purchase of small coffee.


MSM coffee shops have initiated several marketing strategies in the recent years. Below is some recommendation that the company must initiate for better functions in the future.

MSM can include some special offers in holidays and weekends to increase the smell of the coffee shop and attract more and more customers. In this way the customers will also get to try new items in the coffee shop. The company policy can also include feedback, in which the customers can offer more suggestion about the betterment of the products and services. The company aligns with other company and involve in cross promotion. The company website needs time to time updating.


As per the above report about the MSM companies marketing policies, it is concluded the company has initiated several strategies for the enhancement of the business. The coffee shape maintains the three levels of products in its marketing strategy. Recently the company has initiated free Wi Fi system, combo pack offer, and social media advertisement for the promotional purposes. However, the company needs few things to maintain which includes enhancement in the feedback process and company website management.