Marketing Management
Dec 2025 Examination
Q1. A mid-sized fast-food chain is struggling to compete with larger brands and new entrants in a highly saturated market. Customer feedback indicates that while the food quality is acceptable, the brand lacks a unique identity and customer loyalty is low. The management is considering various differentiation strategies—product innovation, superior service, unique delivery channels, staff training, and brand image enhancement—to create a sustainable competitive advantage and attract new customer segments. How should a mid-sized fast-food chain apply differentiation strategies to stand out in a saturated market, using the concepts of product, service, channel, people, and image differentiation? Recommend a comprehensive approach and justify your choices based on the scenario. (10 Marks)
Ans. 1
Introduction
In today’s very competitive fast food industry, big names like McDonald’s, KFC, and Domino’s, as well as new rivals who provide unique or trendy experiences, place a lot of pressure on mid-sized enterprises. One of the problems is keeping the food quality high, and another is creating a unique brand that people like and want to stick with. The approach is to use a complete differentiation strategy since feedback from customers shows that the brand isn’t very unique or loyal, but the food quality is “acceptable.” This means coming up with new ideas in the five primary areas of differentiation: people, channel, product, service, and
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Q2 (A) Coca-Cola, long associated with sugary soft drinks, faced declining sales due to rising health concerns and stricter regulations on sugar content. The company responded by diversifying its product portfolio to include bottled water, teas, and low- or zero- calorie beverages, and reformulated existing products. As a marketing strategist, you are tasked with evaluating whether Coca-Cola’s strategic adaptations have been comprehensive and sustainable in maintaining its market leadership. Evaluate the effectiveness of Coca-Cola’s adaptation strategy in response to increasing health consciousness and regulatory pressures. Critique the company’s product innovation and marketing diversification, and assess whether these changes sufficiently address both consumer demands and competitive threats in the beverage industry. (5 Marks)
Ans. 2A
Introduction
Coca-Cola has been the world’s top beverage company for more than a century, mostly because of the popularity of its famous sugary soft drink. But its power was significantly challenged by shifting consumer trends towards healthier lifestyles, increased fears about diabetes and obesity, and rules that limited advertising and sugar levels. In response, Coca-Cola changed the recipes for its existing products and added sports drinks, juices, teas, bottled water and zero-calorie choices to its portfolio of products. The key question is whether these changes have been comprehensive and long-lasting enough to
Q2 (B) Starbucks transformed from a single coffee bean store in Seattle to a global brand by integrating premium products, a unique café experience, and a powerful brand identity. The company’s strategy included sourcing high-quality beans, creating a welcoming environment, and building an emotional connection with customers through its iconic branding. As Starbucks continues to innovate, it faces challenges from emerging competitors and changing consumer preferences. Assess the effectiveness of Starbucks’ integrated approach to products, services, and branding in creating exceptional customer value. In your evaluation, consider how the interplay of high-quality products, personalized service, and a strong brand identity contributed to Starbucks’ global expansion and customer loyalty. What potential improvements or alternative strategies could further enhance its competitive advantage? (5 Marks)
Ans. 2B
Introduction
Starbucks has developed from a little coffee shop in Seattle in 1971 to a significant player in the global economy. It now has more than 35,000 outlets throughout the world. It has been successful because it offers high-end items, personalised service, and a strong brand identity. This all-encompassing plan made for a one-of-a-kind café experience and strong emotional connections with customers. Starbucks has to keep improving its
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