BUSM 2112 Global Business Marketing Assignment

BUSM 2112 Global Business Marketing Assignment

Solution of BUSM 2112 Global Business Marketing Assignment

Market position

The product service will have a good reputation in the market because of having a trained team at workplace. There are testing experts along with various ovens to maximize the production level. There is an expectation to grow the business and expand into new markets. The activities of the business include storing, purchasing, preparing, selling and serving the products to the customers.  It has been expected to serve over 3,000 customers per month. The shop is open from 10am to 6 pm Monday to Friday and from 9am until midday on Saturday and Sunday. The Café has 60 seats in the shop. It has also been decided to select the market segment that will include consumers of both high-end and low-end. A policy has been adopted to serve all and for that purpose a variety of products is kept with a price range of both high and low prices.

The policy to serve both high and low end consumers will act as a competitive advantage for us. The main competitors Jim bakery and Cathleen confectionery target to grab only high-end market segment and that differentiate us from them. The distinct policy will help to grab large market share.

Unique selling position:

It has been planned that the business will possess a unique pricing policy for its products so that different class of people can visit the shop and taste the cakes, coffee and waffles. A policy has been framed to provide the best quality at a low price and there different types of products that will satisfy the needs of different customers. The café will have a big range of different products and the baking policy is also different from any other bakeries in town. More over the management has set a policy to focus on investing for the shop environment, service that the management will offer and the management has also decided to appoint food tester to assess the taste of cakes, coffee and waffle that the management will be providing. The quality will remain unaffected regarding the pricing of the products in the organization. It is also decided to provide catering services during various occasions at a reasonable rate. On weekends various attractive offers and discounts on different products will be offered. Special lunch set especially for the students will also be provided. the formation of the store will be made in a unique way that will offer reading and meeting rooms to the customers and at the same time room for celebration. (Cadogan, 2009).

Pricing strategy:

Pricing strategy is the strategy that every organization fixes in order to gain various kinds of customers and also earn healthy revenue. For the products of the cafe the prices will be fixed in such a way so that the management can attain customers of both high end and low end. It has been decided to frame a three tier pricing strategy for the products; it will consist of a range of high, medium and low price so that it suits the demand of different types of consumers (Yang, 2004).

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A proper strategy will be chosen in order to create a strong market position. It is expected to create a considerable footprint in the market so that it will be possible counter the increased competition in the market. Majority of the cafe target high end consumers, but for Pink Kitty’s House it has been decided to create such a flexible price range that can be affordable by both high end and low end customers. This strategy will help in grabbing a lion’s share in the market. It is believed that an increased market share will act as a competitive advantage. The respective pricing strategy has been framed on the basis of a consumer research conducted, that projected that there are a considerable number of low end consumers in the market. Again, it has been observed that the demand for cakes is quiet considerable among both the high end and low end consumers. So based on this idea and information gathered it has been decided to adopt the above mentioned pricing strategy for the products so that it becomes possible to grab both high end and low end market segments (Smith, 2012).

Value to customer:

As it is decided to provide discounts on the products, the pricing level is balanced. The ambience inside the shop will be quite and comfortable, the customers will be provided with meeting room, bookstore, and celebration room. It has been aimed to provide the consumers with multiple facilities so that they can enjoy meeting others or reading or celebrating at the same time with having delicious cakes and waffles. This will attract the customers.  Different attractive offers and prices will be offered to the customers; it has also been decided to organize a lucky draw every month where attractive gifts will be offered to the winners. It will be the aim of the cafe to offer the best quality of products so that the children as well as the elderly people will like it. Free delivery will also be provided to the consumers.

The unique feature of the café would be the shop environment, it has been decided to construct a shop which is unique and above normal standard. The consumer will appreciate the environment that will be provided to them that will make them feel sweet, relaxed and comfortable. The shop decorations will differentiate the cafe from other competitors and consumers will appreciate the relaxed and well decorated shop environment. (Pride and Ferrell, 2008).

The café will be impressive than the normal one. A high quality food will be provided to the customers. The food provided would be light and healthy. And the management will provide excellent value for money to the customers. The working staffs will make sure that the customers are served in a timely manner. The cafe will provide different types of products which will be a mix of expensive and cheap ones, some of them will act as necessities while some as luxury.


It is decided to develop a logo or a brand for the shop so that the customers can locate it easily. Kitty’s house will emphasize more on the girls and young ladies. The key customers will be the children and students. Whatever they prefer the management will look after that. The management has decided to create the brand image by forming a high quality café at the heart of Melbourne that will impress the customers. It will look upon that both the boys and girls will be happy after visiting the shop, the services will be provided in a unique way that will make the customers feel relaxed, comfortable and happy (Wendell, 2011).

Key customers:

The key consumers will be young girls and ladies. A target has been framed to attract the younger ones and the management will design the store in such a way that will attract the young people. An endeavor to maintain a good relationship with the customers will be made by fulfilling their demands, needs and requirements. The staffs will try to communicate with the customers. The cafe will provide attractive paper bags for the customers. The staffs will keep the environment clean by reminding the customers’ that not to waste foods.  It has been aimed to use fresh ingredients every day.  The management will build up a good relationship among the customers. The mission will be to satisfy the customer’s needs and wants for the high quality and delicious cakes, coffee and waffle and with excellent service. This will increase the market position.  It has been decided to provide room for meeting, studying and celebrating to the customers and at the same time a sweet, relaxed and comfortable environment will be provided to the consumers so that they will feel pink.  will increase the advertising in different areas to attract new customers. The management will provide some service standards to the customers such as appropriateness, timeliness and accuracy. The management has decided to locate the café near schools so that a he customer flow can be obtained.

Customer management:

Appropriateness ensures that the customers expectation have been met and particularly in an enquiry situation. The shop will deliver the products on time so that the customers will get a good impression regarding the shop. It will be a free delivery parcel. The plastic bags of the parcels will be designed amazingly. The Customer servicemanagement will be providing multiple services to the customers apart from providing cakes, coffee and waffle, the management will be providing rooms for meeting studying and celebrating to the customers. The foods must be fresh enough. Customers also expect accurate information and accurate deliveries. To set of service standards the management needs to focus on some segments such as competitors, employees, regulatory authorities, potential customers, former customers and the existing customers. The management will also follow the existing code of customer service standards in order to satisfy the consumers and to add value to the brand (Piercy and Lane, 2009).


To reach the customers the management needs to distribute leaflets among the college students or the passersby. The management will promote to the customers the brand by social networking sites such as facebook, twitter etc. The management will also provide online advertisement so that they will able to get the information regarding the shop. The management will provide discount the price in the festival sessions. The management will promote it in the radio and also in the television with interesting animation so that the customers by watching the promotion will be attracted to visit the shop. Regarding the various menus and their pricing will be written in the brochures so that by getting the leaflets they will able to contact with us through phone or mails. 

Advertising and promotional strategy

Planned promotion:

As mentioned earlier the Pink Kitty’s House will be famous cafe. As it is new to many of the customers so the management needs to make few advertising strategies. Firstly, the management will be distributing leaflets and the management has planned to proceed with print media advertisement to create awareness of the new cafe, so that new customers are able to come and enjoy the delicious items. Secondly, the management will go for digital marketing, in which the management will post advertisements of the cafe at various social networking sites. People who surfs internet would be able to see the advertisement and if anybody is delighted with the advertisement then they will surely visit the shop. The customers who have already visited the shops the management has collected their contact numbers and email addresses so that the management can keep them updated with the new offers and discounts. The management also prefer the electronic media releases such as advertisement in televisions and print media releases for advertisement of the shop. This will help us to make the customers aware of the shop and this will lead to large number of customers in the shop. The management will also undertake various campaigns to promote the brand (MacRury, 2009).

Promotional strategy:

The management will undertake various promotional activities so that the management will be able to gain more and more customers for the shop. These activities will help us in gaining a big market share. The management will be going on distributing leaflets to the public and school and college students who are more entertained with cafe. In the leaflets the management has printed every details of the shop including the cake items available in the shop. Again, distributing leaflets will also provide a double dimension code of the online advertising as pursued by the customers as they will be able to contact us directly and can contact us through email. The strategies for this advertisement are that it will help us in getting more customers. The leaflets will be distributed near schools and colleges as the students will be the most frequent visitors to the shop. Through leaflets the management will be able to keep the customers updated of the offers and discounts and it will help us to increase the sales and publicity. On the other hand the management will also offer discounts on large cakes and items needed for a birthday party and this will also attract many customers. The management will use some social media such as face book, twitter etc, and then some advertising agencies will also help us to keep up with the social media presence (Engel, 2011).

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Expected business improvement:

The strategies which the management is following will lead to improvement in the business. The advertisement strategy plays a very significant role in improving the business as it increases the sales and thereby increasing the number of customers. No doubt the products will also be considered to be quality product. The advertisement will lead to increase in sales and it will also lead to increase of customers. As there is an increase in the number of customers, the revenue will also increase. This would in turn increase the customer publicity. Financially the management expect that the strategy that the management is following will help us in increasing the net profits substantially. The management is expecting a rise in the profit level at the rate of twenty percent every year as the sales will also increase simultaneously. The policy regarding the pricing structure that the management will adopt and along with it the other strategies relating to customer satisfaction and management that the management has decided to follow will help us in reaching the targeted sales and also increasing the sales figure at the same time. The ideas towards promotion and the various activities that the management has planned to conduct in order to increase the presence in the market will help us grabbing a big chunk of market share. Hence, the management expect that with a big presence i9n the market through the promotional policies and increasing the sales the management will be able to acquire a substantial increase in the net profits. However the cost will also increase at the same time but the chosen strategy is expected to keep the cost below the profit margin substantially.



Expense Budget  
PersonalBudget ($)Actual ($)
OperatingBudget ($)Actual ($)
Total8, 0877,480

Start up cost:

Set up Cost($)
Fixtures and equipment11,000.00
Installing fixtures/equipment1,300.00
Remodeling and decorating24,500.00
Raw Material cost3,000.00
Utility deposits3,300.00
Licenses and permits1,500.00
Advertising for opening1,000.00
Sundry (Uniform, etc)2,300.00
Legal and professional fees1,800.00

 The above tables project the cost structure of the café. There are two different tables that specifically show the cost of commencing the business or the startup cost and the next one shows the budgeted expenses that will be incurred for making sales. The entire start up cost of the business is shown in a perfect way in the above table that will give an estimate of the cost incurred for commencing the café.

Target date:

The management has a basic target of increasing the net profit of the concern by twenty percent every year and by the end of second year the management has set a target to increase the net profit to at least thirty percent more than the year of commencement. Hence, the target date will be 31st March 2016, within that date the management has expected to achieve a net profit which will be 30% more than the first year.   


Cadogan, J. (2009). Marketing strategy. 1st ed. London: SAGE.

Engel, J. (2011). Promotional strategy. 1st ed. Cincinnati, Ohio: Pinnaflex Educational Restheces.

MacRury, I. (2009). Advertising. 1st ed. London: Routledge.

Piercy, N. and Lane, N. (2009). Strategic customer management. 1st ed. Oxford: Oxford Univ. Press.

Pride, W. and Ferrell, O. (2008). Marketing. 1st ed. Boston: Houghton Mifflin Co.

Smith, T. (2012). Pricing strategy. 1st ed. Mason, Oh: South-The managementstern Cengage Learning.

The managementndell, M. (2011). The branding. 1st ed. Memphis, TN: Bell Bridge Books.

Yang, P. (2004). Pricing strategy for deteriorating items using quantity discount when demand is price sensitive. European Jthenal of Operational Research, 157(2), pp.389--397.