Case Analysis

Marketing Concepts Marketing Concepts (MKTG 1126)(MKTG 1126)

Session 21

AGENDAAGENDA

1. Marketing Watch Reports

2. Course Announcements

3. “Joggers Universe” Case Analysis

Course AnnouncementsCourse Announcements

• Group Project Evaluation:– Written Report = 15%– Presentation = 5%– Peer Evaluation = 5%

• Please pick-up Peer Evaluation form today and submit (confidentially) with written report.

• Presentation Expectations:– Professional format & style– Be well prepared / practice– Total team participation – 10 minutes + 5 minutes of Q&A

• Session #24 Final Exam Review:– Please e-mail me ([email protected]) any

questions or topics that you would like to review during this final session.

More Course AnnouncementsMore Course Announcements

Case AnalysisCase Analysis

Joggers UniverseJoggers Universe

General Case Analysis Guidelines

• Know your audience• Apply Marketing/Course Concepts• Write like business professionals/marketers• No Data Dumping!• Offer insights• Quality vs Quantity• Have detailed reco/implementation• Do a gut check• Think “outside the case”• Write with confidence/sell your reco

Joggers Universe Case Analysis

1. Problem Statement: Careful analysis should reveal symptoms, which lead to

problem recognition. If root problems are not understood, the remainder of the

case analysis has little merit as the true issues are not being addressed.

Clearly identify root cause that your reco will address.

Checklist for Analyzing Problems: What is the primary problem? Any secondary problems? What proof exists that these are the central issues? What symptoms are there that suggest that these are the

real problems in the case? What are the effects of these problems in the S-T? L-T?

Reference: Peter & Donnelly, “A Preface to Marketing Management”,10th edition, McGraw-Hill Irwin.

1. What is the 1. What is the problemproblem in this in this case?case?

• Sue’s sales have flatted out.

WHY?

Shrinking customer base (serious runners) Increased competition

• Is Sue’s strategy (TM + 4 Ps) still sound?

2. Analysis: Analyze and record the current situation

Apply the marketing strategy planning framework: 3 Cs, SWOT, External Environment,

Segmentation/Targeting, Differentiation/Positioning, TM & 4Ps

Bridge marketing concepts to practical scenario.

Leads to development of alternatives and reco

Joggers Universe Case Analysis

• What kind of analysis did you do for this case?

• Can use the marketing strategy planning framework as a guide.

Joggers Universe Case Analysis

2. Analytical Considerations2. Analytical Considerations for for Joggers Universe?Joggers Universe?

1. Customers:

• Who are key customer segments?

• What are their needs/wants?

• What is their problem-solving process?

• Who/What/Where/When/Why/How?

CustomersCustomersWHO? Serious Runners

•Shrinking market

Casual Runners

Pure Fashion

WHAT? •High perf running shoes•Professional service•Recognized brands

•Broader show selection•Fashion choices

•Fashion product assortment

WHERE? •Specialty running shops•Category Killers•Running Events

•Specialty, dept, discount, shoe stores, category killers…

•Fashion Outlets•Dept, category killers…

WHEN? •Disciplined purchase cycle

•Longer purchase cycle.

•Influenced by fashion trends.

WHY? •Maximize performance •Comfort•Fashion

•Social influences•Fashion

HOW? •Influenced by O/L•Trial•Loyalty

•Awareness (mass)

•Shopping•Selection

•Influenced by O/L•Shopping•Selection

#2- Company:

• Specialty shop

• Respected owner

• 18 years experience

• Loyal customer base

• Flat sales but still profitable

Analytical ConsiderationsAnalytical Considerations for for Joggers Universe?Joggers Universe?

#3-Competitors:

• Increased competition from dept stores, discount stores, regular shoe stores

• Walmart, Foot Locker, Category Killers

• Lower prices, wider assortments

• Could develop competitive comparison chart.

Analytical ConsiderationsAnalytical Considerations for for Joggers Universe?Joggers Universe?

More Analytical Considerations…More Analytical Considerations…SWOTSWOT

STRENGTHS•Core competency with serious runners.•Strong brand names•Loyal customer base•Excellent customer service

WEAKNESSES•Questioning strategy•Narrow product line•Flat sales due to shrinking loyal customer base.

OPPORTUNITIES*•Custom molding•Targeting new segments (fashion)•Expanding product line•On-line sales•Partnerships

THREATS*•Current mold supplier out of business. Why?•Increased competition•Decline of primary target market (serious runners)•Changing customer interests.

*Consider External Environment Factors

More Analytical Considerations…More Analytical Considerations…

Segmentation / Targeting:• Primary TM = serious runners (shrinking)

• Secondary TM= casual runners Growth in casual and fashion segments.

Differentiation / Positioning• J.U. is positioned as a specialty running

store for serious runners.• Source of Differentiation: experience and

superior knowledge of serious running. Is this still enough?

Target Market (s)

Serious Runners

Casual Runners

Product •top quality brands (Nike)•custom molding•Sportswear fashions

•Asst of branded shoe-types •Sportswear fashion

Price •Premium pricing •Premium pricing

Place •1 specialty Joggers Universe retail shop

•1 specialty Joggers Universe retail shop

Promotion •Limited mass programs•In-store activity•Emphasis on personal selling

•Limited mass programs•In-store activity•Emphasis on personal selling

Current Marketing Strategy:

3. Alternatives3. Alternatives• Formulate, evaluate and record alternative

courses of action • What can be done to solve the problem?• 3-7 alternatives are reasonable • Requires sound logic and reasoning• Avoid options that would create new

problems or that would require greater resources than available.

• Evaluate each in terms of costs/benefits

Reference: Peter & Donnelly, “A Preface to Marketing Management”,10th edition, McGraw-Hill Irwin.

3. Alternatives…3. Alternatives…

Possible Costs:•Time•Money•Other resources•Opportunity costs

Possible Benefits•Sales•Profits•Brand equity•Customer satisfaction

Reference: Peter & Donnelly, “A Preface to Marketing Management”,10th edition, McGraw-Hill Irwin.

3. Checklist for Alternatives3. Checklist for Alternatives What possible alternatives exist? What limits must be considered

(competence, resources, mgmt preference, ethical, legal…)?

What marketing concepts are involved? Are listed alternatives reasonable? Logical?

Consistent with goals and objectives? Financial considerations of each? Advantages and disadvantages of each? Which options best solve the problem and

minimize new problems?

Reference: Peter & Donnelly, “A Preface to Marketing Management”,10th edition, McGraw-Hill Irwin.

• What alternatives did you identify?

Joggers Universe AlternativesJoggers Universe Alternatives

Joggers Universe Joggers Universe Possible AlternativesPossible Alternatives

Alternative #1: Maintain current strategy and pursue new “custom shoe” line.Advantages:•Consistent w/ strategy•Possible competitive adv / source of diff.

Disadvantages:•Requires significant investment•Serious runners declining•Supplier #1 went of out business. Insufficient demand?

Joggers Universe AlternativesJoggers Universe Alternatives

Alternative #2: Maintain current strategy and experiment with gradual expansion in fashion areas.Advantages:•Less financial risk•Maintain core competency•Still profitable•Maintain focus on TM•Complement current offerings

Disadvantages:• Competitively vulnerable• May not be enough to

attract new consumers.

Joggers Universe AlternativesJoggers Universe Alternatives

Alternative #3: Alter strategy to target primarily casual & fashion segments.Advantages:•In-line with market growth trends

Disadvantages:• Straying from core

competency• Highly competitive market• No meaningful pt of diff.• Unable to match low prices• Risk alienating current TM

Joggers Universe AlternativesJoggers Universe Alternatives

Alternative #4: Drastically change all strategic elements by re-launching as a Sporting Goods store.Advantages: Disadvantages:

• Too severe a change from current operation.

• Would require significant capital.

• Mature market with many established competitors.

Joggers Universe AlternativesJoggers Universe Alternatives

Alternative #5: “Status Quo” - stay the course and continue to serve the serious runner.Advantages:•Core competency•Focused mandate with less risk of diluting current operation.•Position as “niche” and cater to specific segment.

Disadvantages:• Shrinking market may soon

become unprofitable.• Competition also targeting

serious runners.

Recommendation Recommendation (the “what”)(the “what”)

• Select the alternative that best solves the identified problem.

• State the logic and reasoning for this reco.

• Should be clear and based on your analysis.

Reference: Peter & Donnelly, “A Preface to Marketing Management”,10th edition, McGraw-Hill Irwin.

• What did you recommend to Sue?

Recommendation Recommendation (the “what”)(the “what”)

ImplementationImplementation(the “how”)(the “how”)

• Action-oriented plan for implementing the decision.

• Include specific details.• Ensure consistency with brand positioning and

strategically sound.What must be done?Who should be involved? Responsibilities?When and where?What is expected outcome?How to measure success?

Reference: Peter & Donnelly, “A Preface to Marketing Management”,10th edition, McGraw-Hill Irwin.

• How did you suggest implementing your recommendations?

ImplementationImplementation(the “how”)(the “how”)

Pitfalls to Avoid in Case AnalysisPitfalls to Avoid in Case Analysis1. Inadequate definition of the problem.

2. The search for “the answer”.

3. Not enough information.

4. Use of generalities.

5. A different situation.

6. Narrow vision analysis.

7. Realism.

8. The marketing research solution.

9. Rehashing the case material.

10. Premature conclusions.

In closing….In closing….

• Hand in your case analysis guides (with name).

• Pick up Peer Evaluation forms.

• Any final questions re: presentations?