Case Study
Amber Inn & Suites, Inc.
Chief 9862505 廖語婕
9862525王修彥
9862529宋惠華
9762508洪啟智
9862513邱揚程
9862507郭惠華
9862503鄭明宜
981031許馨尹
Teaching Note
Purchase Process Model
Information requirements
Unawareness
Preference
Knowledge
Purchase
By
Marketing Communication Mix
Advertising
Sales
Promotion
EXHIBIT 1
Personal
Selling
3
Developing an IMC Mix
by Marketing Segment &Position
•Advertising creates awareness
•Salespeople provide information
•Sales promotion, brochures, and
catalogs
Information
Requirements
of Buyers
•Advertising
•Personal selling
•Sales promotion
Nature of
the Offering
•Break-Even Chart for
comparing independent
reps and company sales
force
•Advertising
•Direct marketing
•Personal selling
Target Market
Characteristics
Organizational
Capacity
by
Marketing Segment
Marketing Position
to find target customers
Position Map
Cluster
EXHIBIT 2
4
Amber Inn
Case Analysis
1. Problem Background:


Make sure the Position Strategy for Amber Inn!
Make a decision to select target customers.
2. Target:

Increase company revenue and make profit
3. Conclusion:




Amber Inn and suites should be more focused on business
travelers.
Weekend Special is offered to increase brand awareness and
occupancy.
Business consignment contract with companies.
Cut unnecessary marketing and advertising budgets.
6
Hotel Segment
Ritz-Carlton
Four seasons
Hilton
Marriott
Courtyard
Occupancy %
’03 ’04 ‘05
ADR $
’03 ’04 ‘05
PevPAR $
’03 ’04 ‘05
64% 68% 69%
$221 $232 $246
$113 $158 $172
66% 69% 70%
$127 $132 $139
$84 $91 $98
66% 69% 70%
$93 $96 $101
$62 $67 $71
55% 57% 58%
$72 $74 $76
$40 $42 $44
61% 64% 65%
$69 $71 $73
$42 $45 $48
Amber Inn 59% 62% 67%
$58 $58 $57
$34 $36 $38
53% 54% 55%
$48 $49 $50
$25 $26 $98
Luxury
Upper scale
Upscale
Amber
with food
Inn
Holiday Inn
w/o food
Midscale
Ramada Inn
Red Roof Inn
Motel 6
Economy
EXHIBIT 3
7
Marketing Position
Exhibit 4 Position Shift from revenue and elasticity view
8
Marketing Position
Low
Amenity: Facility/ Service
Luxury
Luxury
Hotel
Upper
Upscale
Hotel
Upper
Hotel
Room rate price
High
MidscaleAfter promotion
Current
Hotel
Promotion plan:
Amber Inn
Economy
Hotel
Economy
EXHIBIT 5
1. In weekday,
target on business traveler,
so we keep business promotions
2. On weekend, we take weekend special to
increase brand awareness and get more
9
occupancy.
Case: GloFish, LLC
Teaching Note
Marketing Channel Designs
Producer
Brokers or Agents
Distributors or Wholesalers
Indirect
Distribution
Retailers or Dealers
Direct
Distribution
Ultimate Buyers
•Use Intermediaries to reach target market:
The type, location, density, no of channel levels
EXHIBIT 6
•Use its sales
•Use Internet 12
Marketing Channel
Strategy
and
Management
•Marketing channel design
•Channel selection:
-target market coverage
-satisfying buyer requirements
-profitable
Multi-Channel
Marketing
Channel-selection
Decision
Channel Strategy
Channel-modification
Decision
Dual
Distribution
GloFish
Focus
by
EXHIBIT 7
Qualitative
Factors
(SWOT)
Channel Management
Quantitative
Assessment
(Cost model)
13
Fit in GloFish
Marketing Channel
Designs
in GloFish @US market
Farm-raised fish producers
Brokers/Agents: Glofish
PET’s Mart:
700+ stores
Wholesalers: Chain stores
5,000 stores
Specialty Retailers:
Independent pet stores
End users
15
Case Analysis
1. Problem Background:


Choose a better channel to help increasing revenue !
Make a decision to add the international market or not!
2. Target:



Potential for Market Growth
The less risk
No more other expense happen
3. Conclusion:


GloFish shall choose independent store and chain stores as
their distribution channels.
No need add international market right now.
16
Conclusion Analysis

Potential for Market Growth
1.
2.
3.

The independent store and chain store are more
suitable
- help the revenue directly
- preview the market growth rate
- estimate the revenue growth rate
Kiosks or Internet may have explosive growth
- unsure it will happen.
Internet
- no experience of the global market before
- may spend huge resource to build up the Internet
system.
The Less Risk
1.
2.
3.
Major risky factor, genetically modified
- Chain Store don’t agree to sell
May impact Asia market
The independent stores don’t concern about the
genetically modified fish is the advantage.
17
Conclusion Analysis

No more other expense happen
1.
2.
3.

Kiosks is too concentrated on Nov and Dec
- other month leased expense will be cost waste
Build up the internet system
- make the cost up
- add Global Logistic expense
Independent store and chain store
- already have the local logistic system
- save much time to make the business go live.
International Market
1.
2.
3.
International market is necessary
- By internet, But now is not good for GloFish.
Need to face many problems
- The illegal breeding
Don’t suggest to do it now
18
Channel-modification
Decision—
Quantitative assessment
EXHIBIT 8
19
Channel-modification Decision—SWOT
S
Independent Pet Stores
Risk/$
Chains Stores
Risk/$
Kiosks
Risk/$
Internet
Risk/$
1.5,000 retailers all over
the country
2.Retail price is higher
than chain store
3.More professional for
Fish lovers.
4.Aquarium kit
5.They're small but sell a
variety of pets and petrelated products
6.They serve people to
purchase the fish
conveniently
1. A majority of
freshwater ornamental
fish sold in the US are
purchased from these 3
chains. (Wal-mart as
greatest chain store
leader in the world.)
2. Aquarium kits are
avaliable in these chain
stores for people who are
the first time puchase.
3. The profit of GloFish's
fluorescent fish is higher
than traditonal one.
4.Glofish’s suppliers
and distributors ,5-D
Tropical abd Segret, have
been regular suppliers of
tropical fish to major
chains store for years.
1.Can sell more than fish,
like fish food, water
conditioner
2.Brand promotion for
GloFish
3.Easy to deploy the
new/beta product
4.High profit margin
5.Convenience in shoppin
center
1.The marketing cost is •The global market is 3
low
times bigger than US (
2. Web site
700 million vs 2 billion)
:www.glofish.com.
Working 24 hours ,
convenient to purchase,
communication and
service with customer
directly
3.Using internet to
educate the GloFish Red
Zebra Danio was safe
None of three major
chains agreed to carry
the Glofish product. And
it may be because
Glofish product is
genetically modified.
1. 40% of the revenues
occurring in Nov & Dec
2. High fixed cost (high
leased price range from
12000 to 36000)
3.Lmited professional
information for fish
1.Delivery cost is higher
than the price of the fish
2.Customers can not see
the real fish swimming
over the tank.
Win
International
Risk/$
Win
W
1.Their cost is higher
than the wholesalers
because of shipping cost
2.It may be hard for them
to financing
3.Most retailers refuse to
display the fish under
optimal lighting
Win
1. Insufficient fund
($380,000 left) for
international campaign or
expansion
2. Inexperience for
international business
(export, direct
investment, or joint
venture)
3. Lack of international
channels or business
20
Channel-modification Decision—SWOT
O
T
1.Total sales of pet stores 1.PETsMART executives Explosive growth rate of
are increasing at an
are considering to sale the kiosks channel
annual rate of 7%
Glofish, although one of
2. Increase total revenue them said there was no
of 4.8%.
demand.
Win
3.It could attract more 2.Chain Store are major
fish aficionados than in distributions of
chain stores.
freshwater ornamental
fish which is capable for
Win
Glofish to make big
1.If new product doesn’ revenue.
The customers of chains There is already having
t work, may lost the same store are price-sensitive competitor sold colorful
money(500,000and not tropical fish
beta fighting fish in the
620,000=-120,000)
enthusiasts.It means
market
2.The number of pet store lower margin for
is declining at an annual GloFish.
rate of 2%
1.Some dot-com
•Asia do not prohibit
company already
the genetically modified
marketed over the
fish
internet, even on eBay
2.People who like to
surfing in the internet is
more than before.
The price of Goldfish
were competitive .Will
lost money If the retail
price of each order does
not higher than $40
•Could be illegal
breeding
. Asia already have their
own fish, so if GloFish
exports fish to there, it
may have some
competition.
21