In each of the chapters in this module there are underlying videos and concepts. (For example in Chapter 1 Red Mango Case and Chapter 1 ISEET video. How do these relate to your view of Starbucks. Business behavior and tactics?) You are to discuss and analyze these videos and concepts and apply them to this Product concept.
Product concept:A 6 day cruise to Mexico on the M/V Carnival Miracle. This cruse will be limited to registered college students, in good standing and having a GPA of 3.0. No more than 100 students from any college may go on a cruise. All student will have to be 19 years of age or older. Passports are required) The cost per person, excluding drinks is $600. Cruises will be scheduled for the week surrounding New Years eve, and a four week period surrounding Spring break
Please read there so you have an idea of what red mango and iseeit video was about. Also, there is a example paragraph in the bottom.
RED MANGO AND ISEEIT VIDEO EXPLAINED:
Founder Dan Kim opened the first Red Mango in Los Angeles in 2007. He quickly expanded, and there are currently more than 200 locations in 27 states, plus three locations outside the U.S. Red Mango has successfully combined a healthy product (frozen yogurt) with cool, fun shops to hang out in. Red Mango uses 100% all natural, non-fat or low-fat kosher, and gluten-free frozen yogurt fortified with probiotics. It has expanded its menu to include fresh fruit smoothies, parfaits, and probiotic iced teas. Red Mango was named the number one smoothie and frozen yogurt chain in America in Zagat’s 2011 National Chain Restaurants Survey. The following video illustrates how Red Mango delivers superior value to customers.
Marketing strives to create value in many ways. If marketers are to succeed, their customers must believe that the firm’s products and services are valuable; that is, they are worth more than they cost. Value represents the relationship of benefits to costs. Marketers deliver value through the marketing mix—the 4 Ps: product, price, place, and promotion. Firms become value driven by sharing information, balancing customer benefits and costs, concentrating on building long-term relations with loyal customers, and creating connections with customers by using social and mobile media. To achieve this, marketers must understand customers’ needs and wants. Successful marketing also requires thoughtful planning, with an emphasis on the ethical implications of any of those decisions on society in general.
Value is when a customer receives more than they give up, such as when a customer pays for a product or service. The definition of value often shifts based upon what each customer is looking for in the product or service they are purchasing. Take for instance the Hernandez family and their search for the perfect cup of coffee. Mom, Dad and Gabbie each place value on different aspects of the coffee drinking experience. Gabbie looks for a unique experience, often provided by independent coffee shops, and is willing to pay more for that experience. Mom, on the other hand, wants the consistency and convenience provided by chains while Dad is not interested in anything fancy but is simply looking for a cheap cup of coffee. Before organizations can effectively market their coffee to this family with such diverse needs, they need to understand where each consumer places value and meet their needs using the marketing mix.
Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery and both before-sale and after-sale service at a specific price. For organizations to provide value and effectively satisfy consumer needs, they must understand their target market and adjust the marketing mix accordingly.
The product description of the 6 day cruise does not seem to warrant the asking price. For starters the cruise is already limiting its customer base by only making it for college students and from there the restrictions become heavier with the 3.0 GPA requirement. The fact that only 100 students from all college also makes it a lot more restrictive because there are no other criteria listed to who the cruise will accept. Unlike in the Red Mango and Starbucks cases, there is no real value being created by just offering a restrictive cruise with a price tag on it without any other real incentives for the product. Red mango, for example, created value by improving the environment that people go to purchase and consume yogurt. Starbucks also made it easy for their products to be conveniently accessible to their customer base, which is the exact opposite of how this cruise is being handled. On the other hand, $100 per day for 6 days (totaling $600) does not seem like a bad price, though there is still little incentive to what other amenities and services will be offered on said cruise. Overall, the cruise, even though it does sound fun, seems really restrictive and is not creating any other value for consumers to jump on the hefty $600 price tag.