Marketing Unit Case Studies
UNIT I CASE STUDY
Cisco Case Study
How is building a brand in a business to business context different from doing so in a consumer market?
Is ciscos’ plan to reach out to consumers a viable one? Why or why not?
Part A
A business-to-business branding context is also known as industrial marketing. Branding in a consumer market essence involves the creation of consumer products brought by individual consumers and households for personal use. On the other hand, industrial branding involves looking at the brand at an inter-company trade relationship and taking into account the brands behavior within an industrial context.
In industrial marketing, purchases are mainly characterized by interdependence of different factors that relate to among other things, the nature and diversity of the product as well as the concentration of sectors of activity and completion. This type of relationship ensures long-term brand management.
Business to business branding exists only in relation to the final product to which it is incorporated, for whatever production it is made for. This means that the manufacture depends on a customer who in turn depends on his customer (Smyth, 2011).
Important distinctions in business to business branding to consumer branding is the industrial context in which the purchase is done, as well as, the need for the brand to be specific. This means that the product gets specifically made for the needs of an organization, and managed by individuals (Glynn & Woodside, 2009).
In industrial purchasing, the company has the advantage of being able to develop marketing strategies with several levels of intervention. These interventions can be at their customers’ levels or at their customers’ customers’ level. Therefore, most supplies study their customers’ markets and clientele lists.
Part B
In marketing, advertising is not the only method one uses to be able to reach potential consumers. To be able to attain maximum impact on the target customers one has to be innovative when putting forth their brand into the public. It is very important to note that the importance of marketing is establishing maximum exposure of the product brand to the market.
Cisco came up with other ideas other than advertisement that have ensured its exposure to the public. Other than collaborating with other company names such as Sony for co-branding of their modems with the Cisco logo, they came up with a new project that ensures that involves sports fans. In this project, sports fans can be able to have fun when they go to different sports games.
Therefore, is Ciscoes’ plan to reach its customers a viable one? The answer to that would have to be, yes. When marketing, it is important to know who and what ones market is. This is achieved by knowing the potential and actual customers, the competition, and the industry one is operating in (Pakroo & Stewart, 2010). So far, Cisco knows its actual customers and reaches them through advertisements.
It has discovered that the sports industry has many clients; therefore, it aims at reaching these customers by creating experiences that will draw these clients to their product. This is achieved by enabling fans to link with their favorite players through videoconferencing, which is made possible by Cisco. On top of that, they provide digital displays and HD televisions in stadiums. This experience on its own is able to pull many sports enthusiasts to Cisco products.
Sources
Glynn, M. S., & Woodside, A. G. (2009). Business-to-business brand management: Theory, research and executive case study exercises. Bingley: JAI Press
Pakroo, P., & Stewart, M. (2010). The small business start-up kit for California. Berkeley, Calif: Nolo.
Smyth, H. (2011). Managing the professional practice in the built environment. Chichester [England: Wiley-Blackwell.
UNIT II CASE STUDY
Nordstrom Case Study
How else can Nordstrom continue to provide exceptional customer service and increase brand loyalty?
What are Nordstrom greatest risks and who are its greatest competitors?
Part A
Nordstrom has been able to achieve customer loyalty through an elaborate plan put up that ensures the clients complete satisfaction when shopping at their stores. Apart from the no questions asked return policy, the store awards their loyal customers in small and big ways that please them. Though the store seems to have every aspect of good customer service in place, there are a number of emerging, growing trends that Nordstrom could adopt that would further their customer service course and further increase their brand loyalty.
Gift registries are no longer restricted to bridal affairs. More stores are coming up with this idea because of the variety of customer needs. Through gift registries put up in the store or online people can check the list and pay for an individual product that the customer likes and is on the list (Linsenman & Kingaard, 2011).
Gift certificates are also becoming very popular. This kind of service allows a customer to pay a certain amount for the certificate, which someone else will come to spend in that particular store.
They should also establish a feedback system. This is because one may be surprised by what they learn about customers and their needs when asked what they think of an individuals business, products, and services. This can be achieved by surveys, feedback forms and questionnaires, but it is always good to ask customers first-hand for feedback when they are completing their orders.
Part B
The main competitors of Nordstrom are store that are specialty retail stores. These include companies such as The Gap Inc, Limited Brands Inc., Abercrombie & Fitch Co., and Saks Inc. most of these stores offer their merchandise at cheaper prices which give Nordstrom a run for their money. These Competitive conditions within this retail sector may force the company to reduce its sales price therefore bringing down the company's sales margins.
Nordstrom's business is seasonal in nature and only generates a high percentage of sales during its second and fourth quarters, which are more often than not characterized by the company's anniversary sales and holiday seasons. As a result, Nordstrom faces exposé to significant risks, if the seasons fail to deliver expected operating performance.
Diminished consumer confidence and spending behavior such as macroeconomic factors like higher fuel and energy costs, credit availability, high unemployment levels, and high household debt levels are element that may in the end, end up hurting the company's growth and profitability.
The loss of important individuals or the inability to recruit and retain individuals with the relevant talent and experience would disrupt the operation of the business and negatively affect the companies’ ability to deliver its strategy.
Sources
Linsenman, C., Kingaard, J., & Entrepreneur Press. (2011). Start your own retail business and more: Specialty food shop, gift shop, clothing store, kiosk. Irvine, Calif.: Entrepreneur Press.
Swoboda, B., Schramm-Klein, H., Morschett, D., Rudolph, T., & Schnedlitz, P. (2009). European Retail Research. Wiesbaden: Gabler Verlag / GWV Fachverlage, Wiesbaden.
UNIT III CASE STUDY
Case Study (Disney)
What does Disney do best to connect with its core consumers?
What are the risks and benefits of expanding the Disney brand in new ways?
Part A
Disney uses geographic, demographic, and psychographic segmentation. This means that, it uses multi-segment targeting. Even though it may seem like Disney targets only kids, Disney’s target market is the whole family and not the children only. Disney’s core constituency is the urban, median-income family who wants to have fun. It understands its target market thoroughly. The company uses this deep knowledge of its target market to sell all kinds of products and services. It serves the infant category as effortlessly as the teen or adult category. It creates products and services for its core constituency.
Disney is always working toward exploring and expanding its markets. It has developed theme parks in major international cities outside of the U.S., like, Paris, Hong Kong, and Tokyo. This expansion strategy is not just limited to new geographies but also encompasses new products and services. These acquisitions greatly expanded Disney’s licensing and merchandising business.
Delighting the customer is Disney’s core product strategy. Whether it is the theme parks or the movies, Disney tries to cater to children and grown ups. It believes in continually improving its products and service offerings. Disney is also constantly creating new products. It believes in building a community of dedicated and loyal fans. It has achieved this through social media. In addition to social media, Disney advertises in conventional media as well. It believes in constant advertising – both online and offline, to be always in its customers’ minds. Disney also uses direct mail and sales promotions.
Part B
Brand Extension has many advantages as well as disadvantages. Some brands have tried and terribly failed in their extension such as Coke Cola. On the other hand, some brands such as mars have extended from snack bars to ice creams and chocolate drinks.
Some of the advantages of brand extension include the fact that it increases brand image by making the product known for different ideas. This in turn reduces the risks perceived by the customer. An established brand name increases consumer interest and willingness to try new products that have the established brand name. If the efficiency of promotional expenditure increases, advertising, selling, and promotional costs are reduced (Smith & Zook, 2011). Therefore, Cost of developing new brand is saved. The consumers seek for a variety under the brand name and the expense of introductory and follow up marketing programs experiences reduction.
The core brand is likely to benefit in that the image of parent brand experiences enhancement. It also revives the brand if it was experiencing a go-slow by allowing subsequent extension. The brand meaning is clarified and it increases market coverage as it brings new customers into brand franchise. Customers hence associate the core brand to the new product
On the other hand, brand extension in unrelated markets may lead to loss of reliability if the brand name is extended too far. There is a risk that the new product may generate implications that may damage the image of the original brand (Hill & Jones, 2010). There are also chances of less awareness because the management may not provide enough investment for the introduction of new product assuming that the spin-off effects from the original brand name will recompense. It is important to observe that if the brand extensions have no advantage over competitive brands in the new category, then it will fail.
Sources
(2013, 03) The Best of Disney’s Marketing Strategies. Retrieved 03, 2013, from http://www.saleschase.com/blog/2012/05/14/best-disneys-marketing-strategies/
Smith, P. R., & Zook, Z. (2011). Marketing communications: Integrating offline and online with social media. Philadelphia, PA: Kogan Page
Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach. Boston, MA: Houghton Mifflin
UNIT IV CASE STUDY
Louis Vuitton Case Study
How does an exclusive brand such as Louis vuitton grow and stay fresh while retaining its cachet?
Is the counterfeiting of vuitton always a negative? Are there any circumstances where it can be seen as having some positive aspect?
Part A
Worldwide, Louis vuitton has established itself as a luxury brand. This is because more consumers are now going for items that have a quality tag as well as a name that is recognized in a specific market. The vuitton company has come up with for main marketing strategies that enable it to earn profit even during hard economic times. This strategy, also known as the four Ps’ comprises of Product, Price, Place, and Promotion.
In general, marketing, a product seeks adequate product quality. Quality control entails fitness for use and conformance to requirement, and excess quality because principles raise the cost of the product. However, a Louis Vuitton handbag offers a product of distinguished quality and attention to detail, as well as one with a story behind it. While general marketing places importance on relative quality, for Louis Vuitton the concept seems to be absolute quality, which prompts consumers to insist on Louis Vuitton or nothing, rendering comparisons of Louis Vuitton products with competing products insignificant.
General marketing demands low prices, which are achieved by reducing costs and having off-shoring production. Louis Vuitton products, on the other hand, are priced high. In essence, the Louis Vuitton difference is value, not price, this being absolute value, not relative value. While general marketing seeks to create broad distribution channels, opening more stores or selling through no department store outlets, such as mail order and volume retailers, Louis Vuitton products are only offered through limited distribution channels.
General marketing looks to `mass advertising" in its efforts to sell at high volume. This is mainly achieved through television commercials. Louis Vuitton, however, does not advertise on television. It advertizes in newspapers and magazines, which, consist mainly of image advertisements rather than aggressive sales advertisements, therefore, more focus is given to publicity.
Part B
People who cannot afford the price of the original brand buy most pirated products. However, as soon as these people can afford these products, they go for them. Brand awareness rockets in markets where the authentic product operates as more consumers have access to these products that would otherwise be out of their reach. This increased brand publicity and helps drive sales of the authentic products from those who can afford them.
The decisions to purchase a counterfeit product usually confirms the brand’s real values as the recipient buys the item to project the very image the brand is trying to represent through its advertising and promotion. This shoddy endorsement encourages loyalty, generates awareness, and strengthens the brand’s values with both the owner of the fake as well as everyone with whom the fake product meet.
Another benefit is that counterfeiting closes off the competition. High priced branded goods encourage competition to enter the market at slightly lower price points. Counterfeiters usually produce branded goods and sell them at significantly below the cost of the competition. This means the competition is squeezed out as it has nowhere to go. This is because it is priced out of the top market by the original brand and can’t compete with the counterfeit, as their prices are too low.
Sources
Castets, S. (2009). Louis Vuitton: Art, fashion and architecture. New York: Rizzoli.
Kapferer, J.-N., & Bastien, V. (2012). The luxury strategy: Break the rules of marketing to build luxury brands. London: Kogan Page.
Chevalier, M., & Gutsatz, M. (2012). Luxury retail management: How the world's top brands provide quality product and service support. Singapore: Wiley.
UNIT V CASE STUDY
RITZ CARLTON CASE STUDY
How does the Ritz match up to competitive hotels? What are the differences?
Discuss the importance of the wow stories in customer service for a luxury hotel as the Ritz
Part A
The Ritz is like any other comfort hotel. However, there are some standards set up by the hotel management that make it stand out from the other hotel brands. For any hotel to achieve success, it needs to have the best location, beautiful rooms, and nice rooms. The Ritz recognizes that any great brand has to be better, different, or cheaper to win. However, the hotel focuses their attention on impeccable service standards to separate themselves from other Hotels in the industry. What they have done is to incorporate culture into their brand.
One of these cultures is the idea of meeting the “unexpressed” needs of their guests irrespective of whom the guest is. Most marketers struggle in knowing what their customers need. The Ritz has created a culture where bartenders, bellhops, front desk clerks, and any other employee instinctively meets these “unexpressed needs”. Employees carry around note pads and record the expressed and unexpressed needs of every guest and then they use their instincts to try to surprise and delight these guests.
Employees are fully empowered to create unique, memorable, and personal experiences for their guests. Unique in this case meaning doing something that helps to separate the Ritz from other hotels. Memorable forces the staff to do something that truly stands out to the guests. In addition, personal defines people doing things for other people.
The “Radar is on and Antenna is Up” culture ensures that employee can be looking for the unexpressed needs of the customers. This in turn ensures that the customers leave the hotel with a ‘wow story’. Employees are therefore always on the look out for potential wow moment.
Part B
Story telling branding is a recent development that marketers have come up with to help them sell their brands. The idea is to come up with stories related to your brand that will draw customers to your brand by making them feel like they connecter with your brand.
The main aim is to create an emotionally compelling brand or company story used to develop and implement a content-based marketing program. In the case of the Ritz, their wow stories are based on the customers’ experience of their hotel service and the extra mile they go for the customer. This pulls other customers to the hotels who also want to experience their own personal wow moment.
Stories help identify the characteristics of an “emotional space” the companies want to own for brand strategy development. Most businesses seem like they always want money from the consumer. However, stories show the emotional side of the brand therefore drawing more potential customers to the brand.
Stories help to engage with prospects, customers, influencers, and other audiences in order to establish thought management and become a trusted influence. They also identify the deep emotional drivers associated with a specific experiences used for operational improvements, personnel training and customer loyalty metrics. Furthermore, they identify the essence of corporate culture used to evaluate and plan for successful mergers.
Sources
Gallo, C. (2012). The apple experience: Secrets to building insanely great customer loyalty. New York: McGraw-Hill.
Gitman, L. J., & McDaniel, C. D. (2009). The future of business: The essentials. Mason, OH: South-Western Cenage Learning.
Michelli, J. A. (2008). The new gold standard: 5 leadership principles for creating a legendary customer experience courtesy of the Ritz-Carlton Hotel Company. New York: McGraw-Hill.
(2013, 03) Stories That Stay With You-Memorable moments from the Ladies & Gentlemen of The Ritz-Carlton. Retrieved 03, 2013, from http://www.ritzcarlton.com/en/StoriesThatStay.htm
UNIT VI CASE STUDY
Amazon.Com Case Study
Why has amazon.com succeeded online when so many companies have failed?
Will the kindle revolutionalize the book industry? Why or why not?
What is next for them? Is cloud computing the right direction for the company? Where else can it grow?
Part A
Amazon is currently the biggest online store in the world. This is attributed to among other things the fact that Amazon is famous for knowing what their customers need before the customer is even aware of that need. The company’s vision was and still is to offer “Earth’s biggest selection and to be Earth’s most customer-centric company. Since its conception, amazon.com, which was originally founded for providing books online, has expanded its venture to other products like music and furniture. The company’s’ success can be attributed to a number of reasons.
The company started by building the largest online listing of books in the world, made sure that these listings appeared in search results and delegated the long tail by allowing third party sellers to sell less popular titles via the Amazon Marketplace. They then applied the same practice across fifteen other categories, including music, therefore providing both the breadth and depth in selection that consumers like. Where necessary, it purchased strong affinity brands, as Zippo’s that shared Amazon’s e-commerce philosophy and customer focus. By ensuring, that their customers have a variety of their products to choose from they retain their old customers and gain new ones.
The company offers the lowest prices in the market. Their prices are the lowest in the market, which gives their competitors a hard time in competing with then. It is estimated that the longest a product can stay on the Amazon shelf is thirty-three days.
Customer convenience is very important to the company. With the growing trend of online shopping Amazon ensure that among other customer comforts like shipping; their consumers get reviews of the products they intend to purchase.
Part B
On November 19, 2007, Kindle the handheld reading device, was released by amazon.com, and sold out within four and a half hours. The device has the ability to hold over one thousand five hundred books, effectively condensing ones library into a third inch thick, ten point two ounce reading device the size of a normal paperback. This means that the owner of the device can carry many books as they want in the device. Before the conception of this idea, book owners had to carry books everywhere if they needed them. People who were book lovers had to create space for storage of the books, which was inconvenient if one had small or no storage at all.
With the kindle, not only are people and even institution able to access the books they love at a cheaper rate but they can also conveniently carry around all their favorite books in a portable device. Currently the price of the kindle is a little bit on the high end. However, with the expanding technological world, the kindle will soon overtake the need to purchase paper books.
Part C
Amazon has recently incorporated cloud computing into their production. This is a major step towards not only good marketing but also efficiency in the running of the company. To better, understand the impact of cloud computing in any business.
The biggest advantage cloud computing does the user is saving up on the money in purchase and maintainace of stand-alone software or servers. By cloud computing, one can easily save the overhead charges such as cost of data storage, software updates, management, and most importantly cost of quality control. Now anyone can use the services of cloud computing at affordable rates.
Other than that, storing information in the cloud gives the company almost unlimited storage capacity. Hence, you no more need to worry about running out of storage space or increasing ones current storage space availability. It also allows for backing up and restoring ones, data since it is stored in the cloud. It also allows for security of the data since it is stored in cloud therefore cannot be lost easily.
Cloud computing delivers a better cash flow by eliminating the capital expense associated with building the server infrastructure. This is good for Amazon because they are an online store.
The future of Amazon.Com is a bright one. Not only can they sell books and music online, they should also consider introducing other products into their brand such as movies, computer programs and applications, games and learning instructions/lessons.
Sources
(2013, 03) How Amazon.com Has Lived Up To It’s Name In Online Retail. Retrieved 03, 2013 from http://seedwalker.com/2011/10/how-amazon-com-has-lived-up-to-its-name-in- online-retail/(2013, 03) Morehouse Jim, et al., “Are You More Capable Than Your Competitors Are Ruthless? Retrieved 03, 2013 http://www.atkearney.com/images/global/pdf/Are_You_More_Capable.pdf, page 18
Kelly, M., & McGowen, J. (2011). BUSN 3. Mason, OH: South-Western Cengage Learning.
Stair, R. M., & Reynolds, G. W. (2012). Principles of information systems. Australia: Course Technology Cengage Learning.
UNIT VII CASE STUDY
Gillette Case Study
Gillette has successfully convinced the world that “more is better” in terms of number of blades and other razor features. Why has that worked in the past? What’s next?
Some of gilletes’ spokespeople such as tiger woods have run into controversy after becoming endorsers of the brand. Does this hurt there brand equity of marketing massage. Explain?
Can gillette ever be as successful in marketing to women? Why or why not?
Part A
The introduction of the more is better campaign was actually Gillette responded to the introduction of disposable razors. The value proposition of disposables was, the quality of the shave is almost as good as you get with real razors, but we are a lot cheaper. This made the target consumers and the loyal customers to start re-evaluating their purchases with more people now going for the disposable blade. This is because the blades were cheaper. Gillette faced a choice. They could would either embrace the new technology or start making disposables themselves. Alternatively, they could double down on their existing business model.
They chose the latter. They came up with models that included many blades that ensured that the customer would get maximum us the blade before it worn out. They had a quality advantage, and they have continued to invest in stretching that advantage. Instead of trying to shore up their weakness, which was their pricing, Gillette put all of their energy into building their advantage. Their consumers were therefore convinced that having more blades that lasted a bit longer was better than disposable blades. Gillette had a clear advantage in performance and they have been able to build on that. The result has been that even in the face of a potentially disruptive innovation, they have to maintain a lead in the razor market.
Part B
In marketing there is a term coined up that states that bad publicity is good publicity. This is because many people arte attracted to scandal. The more the people learn about the scandal the more likely they are to hear about the brand the individual was endorsing.
Scandals attract attention. If a brand can overcome the negativity and control the consumer outrage that can quickly pop up online through social networking, the brand, and even category, can benefit from increased awareness. It can also level the marketing field by bringing up issues that were not previously in the consumer consciousness. The brand gets an edge. If the scandal is just enough to make you seem “bad” but not enough to actually be detrimental your business or consumers, a proactive “sorry” in the right way is often enough to allow the issue to subside and the brand to move forward. The scandal will eventually become part of the brand’s mythology.
A scandal prompts course correction and can lead to overall improvements in various sectors of the brand awareness. Scandal can also bring fame. Brands that are already in the public perception are celebrities in their own right. Scandals not only have the power to break a brand, they have the power to make a brand.
Part C
Shaving is now becoming a popular trend in women. The modern woman wants to shave for hygiene purposes. Women's shaving is Gillette's fastest-growing blades and razors division, and Venus, the brand it launched for women in 2001, took in more than a half-billion dollars in sales 2008. The brand at first just sold to women male products that had been packaged prettily, however with the introduction of the Venus brand this changed.
The company has come up with razors that fit the female profile more with more and more innovative products being introduced every now and then. So as it stands, Gillette has a fighting chance of marketing to women and succeeding.
Sources
Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London: Cengage Learning.
(2013, 03). Gillette sharpens its focus on women. Retrieved 03, 2013 from http://www.boston.com/business/articles/2009/01/04/gillette_sharpens_its_focus_on_wo men/?page=full (2013, 03). It's Good To Be Bad: Scandalous Brand Building. Retrieved 03, 2013 from http://www.fastcompany.com/1816238/its-good-be-bad-scandalous-brand-building
UNIT VIII CASE STUDY
Starbuck’s Case Study
Starbucks has worked hard to act ethically and responsibly. Has it done its best to communicate with its consumers? Do consumers believe that it is a responsible company? Why or why not?
Where does a company like star bucks draw a line on supporting socially responsible for example how much of its annual budget should go towards these programs? How much time should employees focus on them? Which program should it support?
How do you measure the results of its socially responsible programs?
Part A
The primary key to Starbucks' success has always been people. This translates to the customers who enter Starbucks franchises everyday to drink their coffee and the people responsible for growing that coffee. They have set up a business model that is all about people worldwide.
The company has put up some of the best payment plans, benefits packages available to all of their farmers, has great payment plans, and benefits packages for their local employees including fantastic benefits for their part time employees. With this idea of people, they have worked hard to please those that work hard to please their customers.
Customer service has always been a high priority with Starbucks. It is why a manager or assistant manager at a Starbucks receives at least 80 hours of training and a barista receives 40 hours of training before they are allowed to make drinks without supervision. A confident barista is cheerful, capable, and works to make that perfect cup of whatever you wish. This attitude of people first together with a great product has made Starbucks the success that it has become. Starbucks has worked hard to boost it's line of products and all that it offers. It has done so to please its growing number of faithful customers.
Part B and C
Starbucks is currently involved in a number of social programs aimed at benefiting the community. Recently the company was involved in a program that aimed to support our military. Other than that, the company is also involved in other programs such as sustaining small coffee communities they also ensure that they get supplier loyalty from the farmers.
By the year 2003, the company contributed 11.3 million dollars towards community support. This has since gone up with more and more projects joining this bracket. In the same year, the company was able to volunteer 200,000 hours. This means that the company prides itself in giving back to the community. This endeavor should not be reduced at any rate because it shows the customers that the company cares about what is going on in the community around them. It should be observed that despite the amount of time placed in these social programs, Starbucks gains a lot off annual profit at the end of the company’s financial year. The company has embraced the community and by doing so the community embraces back by buying their products therefore supporting it back
It is therefore clear that Starbuck’s thrive in giving back to the community. In doing this, the community and all its current and potential customers take pride in the company.
References
(2013, 03). Retrieved 03, 2013 from http://news.starbucks.com/
Bussing-Burks, M. (2009). Starbucks. Santa Barbara, Calif: Greenwood Press.
Saks, A. M., Haccoun, R. R., Belcourt, M., & Belcourt, M. (2010). Managing performance through training and development. Toronto: Nelson Education.
