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Assess the likely importance to a business, such as Lavazza, of adapting its marketing mix to global markets. - Edexcel - A-Level Business - Question 2 - 2019 - Paper 1
Question 2
Assess the likely importance to a business, such as Lavazza, of adapting its marketing mix to global markets.
Worked Solution & Example Answer:Assess the likely importance to a business, such as Lavazza, of adapting its marketing mix to global markets. - Edexcel - A-Level Business - Question 2 - 2019 - Paper 1
Step 1
Importance of marketing mix to global markets
Answer
The marketing mix is crucial for businesses like Lavazza as it helps in selecting the right blend of product, price, promotion, and place to maximize sales.
For instance, disposable incomes in global markets such as Mexico could be lower than in Europe, prompting Lavazza to implement a different pricing strategy compared to Italy and Europe. Additionally, there may be a demand for specific product adaptations, such as focusing on organic and fair-trade coffee, which is increasingly popular in Canada.
Step 2
Potential counterbalance
Answer
Lavazza's existing product portfolio, exemplified by Kicking Horse, suggests that the product aspect of their marketing mix may not require substantial adaptation. Due to Lavazza's strong position in the European market, they could leverage their existing successful marketing strategies within North America, where the market behaves similarly. Therefore, Lavazza could maintain its marketing approach effectively.
Step 3
Potential judgment
Answer
With over 120 years in the coffee market, Lavazza possesses significant experience understanding differing market dynamics globally. North America is characterized as a mature coffee market with established competitors, making it essential for Lavazza to adapt its product offerings. However, this adaptation should focus primarily on the differentiation aspect—particularly in relation to fair-trade and organic options—which has a high likelihood of resonating with the North American consumer base. This strategic alignment is vital for Lavazza's success in the region.