Marketing Management DEC 2025
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 hypercompetitive fast-food industry, mid-sized chains face significant challenges in differentiating themselves from larger, well-established brands and agile new entrants. While food quality may be acceptable, customer loyalty and brand identity often remain weak without a unique positioning strategy. In such saturated markets, differentiation becomes the key driver of sustainable competitive advantage. By applying a holistic differentiation framework—spanning product, service, channel, people, and brand image—a mid-sized fast-food chain can create distinct value propositions that resonate with evolving consumer needs. The objective is not just to offer meals but to deliver memorable experiences that foster loyalty and attract new customer segments. An
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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, once synonymous with sugary carbonated beverages, has faced significant challenges due to rising health consciousness, lifestyle changes, and global regulations restricting sugar consumption. Declining soft drink sales forced the company to rethink its strategy and diversify into healthier options. Coca-Cola’s response included reformulating products, expanding into bottled water, teas, and zero-calorie beverages, and repositioning its brand to align with evolving consumer preferences. Evaluating these strategic adaptations is critical to understand whether they are comprehensive, sustainable, and
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’ journey from a single Seattle coffee bean store to a global powerhouse reflects the power of an integrated strategy combining products, services, and branding. By offering premium-quality coffee, cultivating a welcoming café environment, and building a globally recognized brand identity, Starbucks has redefined the coffeehouse experience. Its ability to connect emotionally with customers has fueled loyalty and expansion. Yet, emerging competitors and shifting consumer preferences demand a reassessment of
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