A. Cases Midterm: Chap 1: Puma Gives The Boot To Cardboard Shoe Boxes
A. Cases Midterm: Chap 1: Puma Gives The Boot To Cardboard Shoe Boxes
Cases midterm
Chap 1: Puma gives the boot to cardboard shoe boxes
1. What issues are Puma trying to address?
How to make its packaging and carrying material more sustainable and environment-
friendly
How to change its packing material so that the problem faced by the customers while
handling the Clever Little bag
Manage and allocate resources to create long-term value for shareholders.
The needs of customers is gradually changing
How to compete in a highly competitive market
How to make products suitable for the development of society and integrating
organizational culture, strategy and culture
2. How are Puma’s plans in line with the marketing concept?
The marketing concept indicates that the company needs to look for the problems of the
customer and then develop a product that can satisfy their needs. Puma's marketing plans align
with Kotler's broader integrated marketing stance, which Kotler calls an 'holistic' marketing
stance (Kotler and Keller, 2007) that expands marketing to include responsibility for society.
Puma is taking a long-term stance and is willing to bear the rising costs in the short term. It is
creating customer focus across the organization to create customer value.
One of the company's strategic goals is to be the 'most sustainable' sportswear company -
reflected in its culture, competitive positioning, and the tactics it uses in the marketplace.
Customer orientation
Competitor orientation
Long –term perspectives
Organizational culture
Comment : This indicate moderate on Lego’s market orientation. They clearly decide
main consumer for wider age and gender. Addition, it identify the areas where most
improvement is needed (Lego could gradually develop into more of a digital
company)
– On the weak point: about the competitor orientation where the company seems
quite slowly about response to major competitor actions ( the price is high and there
is plenty of competition, Lego dimensions should be a success thanks to the
toymaker’s brand and the huge number of other brands and characters involved in the
game). Lego believe that ‘there is a bigger market for this toys to life than just six to
12-year-olds” and they will successful.
2. Which of the three approaches to marketing presented int his chapter do you think
best describes Lego's approach? Why?
Out of the three approaches: product push marketing, customer-led marketing, and
resource- based marketins: I believe resource-based marketing to be the best presented to
describe Lego's approach. This is because it represents a middle ground between the two.
In this approach, companies base their marketing strategies on the consideration of the
requirements of the market and their abilities to serve it. As well as making an effort to
think long term. Lego achieves to think well equally for both the customer and the
product. For example, Lego creates several characters for the digital games to make the
games more appealing.
Principle 2: only compete in markets where you can establish a competitive advantage
Lego being in many different aspects of gaming (whether it be movies, digital games, or
physical games) they have taken on competing in different markets.
Mr Griffiths found that a huge luxury industry like the home goods market was severely hit in
high streets and due to incompetence behind the fashion market. As a result, people began to be
careful and stop purchasing costly items online. As a result, he saw the online homeware market
as a possible business opportunity.
According to him, the benefit of selling homeware brands on the Internet was that it prevented
some form of storage costs because the items were only stored for a brief period of time before
being sold to the user. Therefore, the company never kept inventories not sold.
One other feature of the company's business strategy was that the retailer did not therefore sell
last season's stock, so it did not keep any inventory for a long time. Creating an online portal and
requiring customers to register in order to access it helped the company build a database of
customers and recognise the items that drew the most interest, allowing it to keep track of its
customer base.
Today, the company, fully focused on the provision of premium home ware products including
mode accessories and children's wear, has reported an unexpected super high growth rate in its
revenues and is a strong rival for other companies in the same sector and intends to increase sales
in the next few years significantly.
Second, the company has benefited from frequent "flash" sales of luxury goods such as angle
poise lamps and kitchen ware at discounts of up to 70% for 48 hours, which has helped the
company experience a huge increase in sales in just two years, with an increase in the number of
potential customers who were previously hesitant to purchase these items.
It has also widened its product line to include fashion accessories and children's clothing. In
addition, it launched websites earlier this year in order to grow its market.
Most notably, Achica has a track record of effectively delivering high-quality products at low
rates to meet the needs of previous recession-stricken economies while still ensuring outstanding
customer service.
Mr. Griffiths expects the business to grow by 5% in the next five years, with revenue increasing
by 650 percent to 14.7 million pounds in 2011.
The information in the case suggests that launching a mobile phone presents a good strategic fit
for Amazon, i.e. there is a good match between the company’s capabilities, the market needs and
the marketing strategy.
2. How does it fit in Amazon’s vision ‘to be earth's most customer centric company; to
build a place where people can come to find and discover anything they might want
to buy online’?
Fundamental to deciding upon where a company is to go is defining its purpose or mission, i.e.:
Amazon intends ‘to be earth's most customer centric company; to build a place where people can
come to find and discover anything they might want to buy online’, therefore the move is highly
consistent, particularly with Firefly. It is also consistent with the success of the Kindle line of
tablet and e-readers.
It is, however, important to be aware that even with the convergence of access to shopping and
devices the new Fire smartphone is another departure from Amazon original core business. It
will be competing against already strongly established brands that are offering familiar operating
systems. It is important that the mission should be defined rigorously and the question of ‘what
business do we want to be in?’ be clearly and unequivocally answered.
3. What strategic focus does the move signify? What alternatives are open to Amazon
and how could Amazon pursue them?
By launching the Fire smartphone, it seems that Amazon would hope that it is
winning shares from its competitors in the market by ‘presenting new capabilities’
in a smartphone.
It also could, also, try to expand the market by:
o Focusing on new uses (probable: the suggestion is competitors’ phones do
not offer the same level of capabilities)
o Getting new users (possible)
o Increasing use frequency (particularly purchases on Amazon website).
It could, also, try to increase its share by:
o Creating alliances (possible).
Finally, it could try to increase productivity by:
o Increasing price (not probable)
o Adding value (possible as already included with the extra capabilities
provided they give genuine value to customers)
o Reducing costs (may be possible).
Market segmentation is the process of dividing consumers into different categories based on
distinguishing characteristics. The impetus behind market segmentation is that it helps retailers
identify customers who are most likely to buy their products Jaeger uses Priority method-
Multiple variables : age, lifestyle. In this case, Jaeger defines itself as a chain of street stores.
Boutique by Jagger is aimed at the 20-plus woman and retail prices will start at $35 for a top,
around 20% lower than Jaeger’s current entry price point. It will compete with the likes of All
Saints, Reiss and Whistles.
Because the purchasing frequency of 20-25 year old is usually higher than that of other are
groups. They are willing to pay more during recession. They are financially independent and are
also more generous than other age groups in shopping.
- People in this age group are less interested in saving money, so they often spend more
money on shopping and entertainment, which is why they target these age groups the
most.
Chap 8: E – reader
1. What are the issues here?
In the given case, all the companies offering e-reading devices adjust the price as a response to
sales of iPad. Company A also reduces its product price by 20%. All this price cutting is done
just to match or compete with the new products offered by another company.
As the response of the market to the new product is very good. The competing companies are
launching new products in the market as a response to the new product that is increasing market
share of the launching company.
Different marketers use different methods for segmenting their market. This decision also affects
the competitiveness of each marketer in the market place.
The issue in the given case is that manufacturer’s faces problem in adjusting its marketing mix.
Marketing mix is the combination of price, place, product and promotion of the product.
The marketing mix of any manufacturer or marketer should be such its help the manufacturer in
strengthening its competitiveness in the market. Another issue that is introduction of competing
or homogeneous goods in the market.
2. How can segmentation and positioning research help solve these issues?
Segmenting the market on the basis of specific and researched factors or characteristics can help
the company in correctly positioning its product in the market. The market researches help the
manufacturer in understanding the market trends and provides productive and innovative ideas
for marketing its products.
This will provide the manufacturer to gain a competitive advantage in comparison of its rivalries
or competitors. On the other hand, position researches can help in clarifying the position of every
competitive product in the market.
Person Simon Jacomet started a boutiques Ski. The place claimed to provide satisfaction to the
needs of wealthy and exacting people who are sking professionals or were potential learners. SJ
was supported by other investors those were his friends and professional skiers too.
The business was doing quite well. Later the founders agreed to invest in research and
development programmes. The founders took the decision of diversification of the business
The facts of the case show that the business operated by SJis a high-performance ski. It can also
be called a winter sport, as the product base and other accessories provided by the business is
related to the sport
The main motive of SJ's business is providing the potentials with an uncompromising
performance along with luxury. Thus, it can be said that SJ’s business is for wealthy prospects
and is related to a winter sport
2. Why does mr germanier want to expand the business? how can segmentation
research help?
Mr Germanier wants to expand the business because he saw potential to expand in their market
to improve sales growth for their company. They built a strong brand and reputation by word of
mouth and it is a powerful tool for growth.
They use priori approach to segmenation research by searching among demographic and social-
economic characteristic-affluent clients. It help them gets sales-oriented, recognize the specific
demands of particular customer use those insights to develop winter sport products that meet the
target users' demands. For example, opening gold club with the driver the crucial club most
regularly upgraded by golfers, crosscountry skiing for older, affluent clients and other
accessories.
3. Which quantities approach to positioning research might best apply to Zai?
The quantities approach to positioning research might best apply to Zai is multidimensional
positioning analysis because Zai needs to determine their competition, position of competitor and
customers to stand firmly on their potential market
In marketing management, the marketer has to decide its target market. The whole market is
divided into different sections by the process of market segmentation.
The target market chosen by the company covers young women with families. The target market
is chosen by keeping the influence of women in purchase decisions of a household.
It may be argued that women usually do not purchase cameras, but the campaign may influence
the decisions of existing or new mothers. Who in turn influence the decision of their husband or
family members in purchasing the camera.
2. How do social media help kodak connect with its target market?
Kodak has revived its long-standing ‘kodak moment’ slogan and reinvented it for the
Facebook era. eschewing the megapixel race and technobabble that is usually found in camera
marketing, Kodak wanted to re-establish an emotional connection with its customers.
Its new cross-media cam- paign focuses on a range of cameras that make it easier to email a
photo or post it on to Facebook or Flickr. Kodak is already very active in social media, with
employees dedicated to listening to customer feed- back on twitter and Facebook.
This campaign combines the emotional hit of TV with online engagement through
kodakmoments.com. additional online ads explain how the product works, which balances out
some oversimplification in the TV segment.
With a campaign to use Sentimental ads, Kodak has helped to capture simple moments in the
user's life. An example is the image of a father sharing a picture of his child with his wife with
the message: ‘the real kodak moment happens when you share '
The strategy used by the company, which is taking help of social media for connecting its
target customers is a good one. The social media sites are used by almost every individual
for sharing his/her moments. This helped the company to keep in touch with the families
of the customers.
Volvo car was manufactured by a company from country S. however, the brand was purchased
by a company from another country. The plants of the car were not to be changed from their
correct place.
The company was prepared to position the car in bigger markets and because of the car’s brand
in the market company’s chairman was sure that the car will do well.
Differentiation refers to the unique characteristics that are present in a product or marketer which
differs it from other products or competitors in the market. The market can differentiate its
product from that of its competitors in any ways. This differentiation helps marketers in taking
pricing decisions.
The facts of the case show that the car is able to make a good reputation in the motor vehicle
market. This can be clearly seen that the benefits and satisfaction offered by the car are different
from the other cars that are present in the market. The differentiation that is achieved with the car
in these years is listed below:
Product differentiation: The car is able to make a difference and good reputation in the
market, thus differentiating itself from the similar cars offered by other marketers.
Brand differentiation: The car has made its brand in the market as the best or superior in
terms of safety and technology, thus differentiating it from other vehicles.
Volvo car was manufactured by a company from country S. however, the brand was purchased
by a company from another country. The plants of the car were not to be changed from their
correct place.
The company was prepared to position the car in bigger markets and because of the car’s brand
in the market company’s chairman was sure that the car will do well.
The facts of the reading show that Volvo brand was purchased by a company from another
country. By purchasing Volvo, the C Company was able to enter into the global brands vehicle
market.
The brand was purchased by the company because of the position of the brand in the market. The
brand was able to create a competitive image I the market. It was one of a marketing strategy
decision.
This will help the company in making new customers and will itself become a competition with
other companies operating in country.
Volvo car was manufactured by a company from country S. however, the brand was purchased
by a company from another country. The plants of the car were not to be changed from their
correct place.
The company was prepared to position the car in bigger markets and because of the car’s brand
in the market company’s chairman was sure that the car will do well.
Differentiation refers to the unique characteristics that are present in a product or marketer which
differs it from other products or competitors in the market. The market can differentiate its
product from that of its competitors in any ways. This differentiation helps marketers in taking
pricing decisions.
The facts clearly state that the car was able to differentiate itself from the similar products in the
market. This differentiation must be sustained to enjoy a competitive advantage. Few suggestions
that can be used by the company for exploiting the market and maintaining its comparative
advantage are given below:
The issues that John Lewis is facing are: It is facing the unmanageable crowd in their premises
which can create unnecessary disturbance to the public and nearby retailers also. It will also
adversely affect the parking facilities outside. Over ordering on the website leads to crashing of
website which would result in delaying of orders for the consumers. Extra manpower is needed
by the organization to handle these heavy operations which would increase the spending of John
Lewis, resulting in high operation cost.
2. How do they impact on the marketing mix?
The issues faced by John Lewis would have adverse impact on marketing mix. Huge discounts
are provided on this day which decrease the price or reduce the profit margin of the retailer.
Marketing would be affected as John Lewis would not be able to provide after sales services to
such a huge crowd which would also reduce the customer satisfaction and that might result in a
low demand of these products from John Lewis after his sale ends. This would also have bad
impact on place concept of marketing mix as it would be very difficult to physically distribute all
these product.
2. How are the companies cited trying to deal with these issues?
In the case, a shop of super jam is where the customers are treated to be more effective in
giving warm sales. According to him, customers are effective for creating sales. The sales
increased due to the work done by customers as they have found more independent shops for to
sell jam.
Another, Triumphant Events have classified its customers to be affiliates. The customers in the
business are also treated as marketing team. The company Wonga provides loan services to its
customers. A voice award was also awarded by the company for voting in the bill payment
category by the customers.
These company also have building a stronger and closer links with customers. This helps in
moving up the marketing relationship ladder. The main approaches are creating structural ties,
building delighted customers and creating benefits of loyalty.
The company through 'relationship marketing ladder' wants to move up their customer- as they
make them their partner so that they can make their marketing team. Whenever there is a
requirement, they also work in service recovery, as was the case of identifying the negative
feedback and later discuss them with the customers.
All the customer relationship with the companies in vignette nurture will shows the importance
of the relationship management as the capability. As in the case, Pauley Creative - specialist
digital marketing group for the construction industry discusses the negative feedback with the
customers.
Building up the commercial relationship with the customers is further affects the profit level of
the company. Especially in a difficult market, it is much better to focus on generating extra
revenue from your existing customers to make the most profitable accounts. when having
effective customer management, so means an improved client experience, a focused marketing
plan, increased revenues and stronger working relationships for businesses.
Chap 15: Mastercard cashes in on smart transit
1. What are the issues facing MasterCard?
- Most of the MasterCard users live in big cities, which is home to half of the world’s population,
and the other half “financially excluded” group is being targeted by MasterCard. It proves that
MasterCard’s market is still not fully realized.
- Urbanization will bring more partnerships, including private and public, to the cities’ networks.
So the transit system-typically MasterCard- seems impossible to tackle the enormous amount of
works alone.
2. How is the company attempting to address this issue?
To take forward the issue of the market, the company have been cooperating with other
orgazations such as UN, WB etc through initiatives. Have more public private partnerships
would be needed as urbanization, increasingly automated and connected urban areas whose
authorities use data to inform the provision of public services. Moreover, need to take 5–7 per
cent of the peak of the peak traffic off to less used routes.
B.Final Parts