Slides Week 3 PDF

Agenda 11 April 2024 1. Recap Porter‘s value chain model 2. Case Study: Starbucks a) Operations b) Marketing c) Customer service 3. Homework / Self-study 1 WEIDEN BUSINESS SCHOOL Prof. Dr....

Agenda 11 April 2024 1. Recap Porter‘s value chain model 2. Case Study: Starbucks a) Operations b) Marketing c) Customer service 3. Homework / Self-study 1 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 1  Homework 11 April 1. Please watch videos on logistics: a) Reverse logistics: https://youtu.be/pspYPdFLmN4 b) Distribution management: https://youtu.be/afr6c2JIewc c) Starbuck‘s Sandwich production: https://youtu.be/IRqgQ0ClNak 2. Please do the research task: Starbucks customer segments 2 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 2  …creates value by combining production factors in a unique way. Recap: Porter’s value chain model Firm infrastructure Value chain = a Secondary Human Resource Management activities business model Technology development that describes Procurement the full range of activities needed to create and Inbound Outbound deliver a product Operations Marketing & Sales Customer Service logistics logistics or service. Primary Activities Source: Porter, M. (2008), Competitive Advantage: Creating and Sustaining Superior Performance. 3 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 3  Recap: Porter’s value chain model Firm infrastructure Secondary Human Resource Management activities Technology development Procurement Inbound Outbound Operations Marketing & Sales Customer Service logistics logistics Primary activities internal Value chain of Value chains Value chains Value chains the company of of suppliers of buyers distributors Markets – across companies 4 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 4  Operations Activities associated with the effective and efficient transformation of inputs into the final product/service: Mechanical processing Assembly Packaging Equipment maintenance Quality testing 5 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 5  https://youtu.be/IRqgQ0ClNak 6 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 6  7 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 7  Example: Starbucks (4) baristas prepare coffee drinks (87,000 variations!) and sell them in a shop or drive thru also: sandwiches, cakes, other beverages operates in more than 80 markets: company-owned stores or licensed stores (not a traditional franchise system); 32,000 stores globally financial report: revenue is created to 51 % in company- operated stores, 49 % in licensed stores almost same number of stores in N.A. and ‘international’, but majority of net revenue stems from N.A. 8 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 8  Where and how does Starbucks create value in operations? 9 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 9  Marketing & sales Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (= definition of the American Marketing Association) https://www.ama.org/the-definition-of-marketing-what-is-marketing/ Marketing activities: Aims of marketing: - Advertising - increase brand awareness - Sales promotion - increase the product or service penetration - Sales field service into target markets - Special Offers - increase customer acquisition - Choice and maintenance of distribution channels - increase customer satisfaction - Pricing 10 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 10  Marketing plan Market Target research audience Marke- Goals & A marketing plan is the ting Mix Objectives outline of the specific actions to be carried out to Media & Budget & Action encourage potential Tactics Plan customers to buy the products and services you offer Content Metrics plan & Schedule Source: https://www.societyforcreativefounders.com/blog/components-marketing-plan 11 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 11  Marketing mix (4 Ps) function cost packaging discount services margin design credit terms features price changes product price How do the emergence of digital media and big data influence promotion place the 4 Ps of the marketing mix? advertising personal sales coverage direct marketing distribution publicity logistics channel communication channel 12 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 12  Types of marketing techniques Type of marketing Examples traditional newspaper, television, radio online video, banner, search engine, e-mail outbound cold calling, newsletter, billboards inbound search engine for customers to find companies article free written articles for clients, suppliers trade shows participation in public trades to display products direct direct mail, direct selling, telemarketing niche companies focus on filling an identified gap in the market drip scheduled targeted e-mail social media YouTube, Twitter, Facebook, getting in contact with influencer referral word of mouth, customer refer new customers promotional contests, prizes, coupons, free samples Source: Combe 2014, 13 p. 531. WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 13  Marketing - Target audience - Customer segments upper middle class/higher professionals, middle Geographic income level, ethnographic, Socioeconomic class/intermediate professionals, demographics, population, skilled working class/trades, urban/rural environment, access Gender lifestyle, attitudes, personality groups working class/semi skilled/machine operators, lower position to infrastructure, industrial/residential traits, interests, leisure activities middle class/functional manager, under class/unemployed Age & Tastes & Business infants, children, teenager, young adults, middle aged, retired, colors, shapes, cultural financial services, retail, elderly maturists, baby boomers, movements, social markers, transport, health care, public demographics generation x, generation y, generation z, alpha fashion symbols, class sectors sector, leisure, entertainment 14 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 14  Marketing - Target audience - Customer segments upper middle class/higher professionals, middle income level, ethnographic, class/intermediate professionals, demographics, population, skilled working class/trades, lifestyle, attitudes, personality urban/rural environment, access working class/semi to infrastructure, traits, interests, leisure activities skilled/machine operators, lower industrial/residential middle class/functional manager, under class/unemployed infants, children, teenager, young adults, middle aged, retired, colors, shapes, cultural financial services, retail, elderly maturists, baby boomers, movements, social markers, transport, health care, public generation x, generation y, symbols, class sector, leisure, entertainment generation z, alpha 15 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 15  Marketing: Segment value Recency When was the last time they purchased the item/service? Frequency Monetary How often and how For what value did long do they they purchase purchase the products/services? product/service? 16 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 16  Sales Sales is the activity of a business to sell their product and services with different methods  A sale is a transaction between two or more parties in which goods or services are exchanged for money or other assets. Forms Techniques direct sales means person to upselling, e.g. persuade a customer to person contact buy something more expensive cross-selling, e.g. persuade a customer channel sales, e.g. B2B, B2C to buy something additional agency based sales, e.g. sales cold calling, e.g. customer had no prior contact with the salesperson agents, telemarketing, retail auctions, e.g. selling by offering a bid, traveling salesman with door-to- taking bids and selling them to the highest door method bit social selling, e.g. using social media to digital sales: selling online find and engage customers 17 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 17 Research task: Starbucks’ customer segments What are Starbucks’ main customer segments? o search the internet, check Starbucks’ websites and documents o What segmentation criteria did you use? What is their typical customer worth per year? o Try to calculate the yearly value of one typical Starbucks customer. Document your calculations: What criteria did you use to define the ‘typical customer’? 18 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 11. April 2024 18