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ASSIGNMENT 2ND SEMESTER : ADVANCED STRATEGIC
MARKETING: THEORY &
PRACTICE 4 (ASM401)
CHAPTERS COVERED
: 1-5
DUE DATE
: 24:00 ON 21 AUGUST 2012
TOTAL MARKS
: 100
CASE STUDY
: STONYFIELD FARM, INC.
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1. You are required to submit ONE assignment per subject.
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contributed by the examination, however, the examination papers will count out of 100%.
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Assignment: 2nd Semester 2012
© IMM Graduate School of Marketing
ASM401
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Answer ALL the questions
QUESTION 1
[10]
The Kelly Bottling Company, located in a large metropolitan area of some 5 million
people, produced and marketed a line of carbonated beverages consisting mainly of
flavoured soft drinks (not including colas), soda water, and tonics. They were sold in
different types of packages and sizes to a wide variety of retail accounts. How might
such a company expand its revenues by pursuing each of the different expansion
strategies discussed in Exhibit 2.5, Chapter 2 of the prescribed textbook?
QUESTION 2
[20]
The president of a large manufacturer of household appliances (such as dishwashing
machines, refrigerators, washers, and dryers) that are manufactured and sold in the
United States, Japan, Mexico, and Europe has asked you to develop a system for
monitoring and evaluating the impact of major environmental trends on the
company’s strategies and programs. Briefly describe your proposed system in terms
of how you would organise your scanning activities, identify important environmental
issues, and evaluate the impact of each issue.
Your proposal must include at least five (5) sources and three (3) practical examples
per source.
QUESTION 3
[20]
Customer relationship management (CRM) is a widely implemented strategy for
managing a company’s interactions with customers, clients and sales prospects. It
involves using technology to organise, automate, and synchronise business
processes – principally sales activities, but also those for marketing, customer
service, and technical support.
What are your views on CRMs?

Complexity

Fragmentation

Business reputation

Security concerns.
QUESTION 4
[40]
Read the following case study on Stonyfield Farm Inc. and discuss the following
issues of its corporate strategy:
1.
2.
3.
4.
5.
6.
The overall scope and mission of the organisation
Company goals and objectives
A source of competitive advantage
A development strategy for future growth
The allocation of corporate resources across the organisation’s various
businesses
The search for synergy via the sharing of corporate resources, competencies,
or programs across businesses or product lines
Assignment: 2nd Semester 2012
© IMM Graduate School of Marketing
ASM401
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A Case Study on Stonyfield Farm, Inc.
Prepared by Timothy J. Greiner, Greiner Environmental for the Lowell Center
for Sustainable Production. Work on this project was funded by the Switzer
Foundation and the Merck Family Fund. Staff to the project included Tim
Greiner (Greiner Environmental) and Vesela Veleva (UMASS Lowell).
Stonyfield Farm was founded in Wilton, NH, in 1983 as a project to help
revitalize the struggling New England dairy industry and support family farms.
Chairman/Founder Samuel Kaymen and President/CEO Gary Hirshberg began
with an organic farming school, a few Jersey cows and “a great tasting yogurt
recipe”. Their initial efforts succeeded and six years later (in 1989), Stonyfield
Farm, Inc. moved to a new plant in Londonderry, NH. Since then the company
has achieved an enviable average annual growth of roughly 35 percent. Its
sales in FY2000 were $56.8 million -- compared to $3.5 million in FY1990.
Today Stonyfield Farm holds approximately 3.3 percent share of the U.S. yogurt
market and distributes its products in all 50 states and Canada. It is the fourth
largest branded yogurt in the U.S. About 35 percent of Stonyfield Farm’s total
production is certified organic, which makes the company the largest producer
of organic yogurt in the nation. Its product lines include nonfat refrigerated
yogurt, low-fat and full-fat organic yogurt and organic ice cream. Newer items
include a kid’s line – Planet Protector Low-Fat Yogurt, Yo-Baby and YoSqueeze.
Stonyfield Farm buys its milk from family farms that produce conventional milk
without the use of genetically engineered bovine growth hormone (rbGH) and
certified organic milk. In addition, through its “Profits for the Planet” program
Stonyfield Farm donates 10 percent of its profits to environmental initiatives. In
1997 alone the company gave $164,008. Furthermore, the company donates
millions of free yogurts to non-profit events, such as Earth Day, The Walk for
Hunger, and Share Our Strength. Stonyfield Farm employs about 165 people,
and shares its success with all employees through employee stock ownership,
profit sharing and other bonus programs. Other benefits include health
insurance, alternative health care and tuition reimbursement.
Stonyfield Farm is a recognized leader among so-called “socially responsible”
businesses. Although Stonyfield Farm’s mission statement was created in the
company’s infancy, much of the firm’s first 10 years focused on survival. In its
second decade, the company has been able to direct more effort toward
fulfilling its founding mission. Having the company’s roots firmly grounded in a
social and environmental mission doesn’t mean having all the answers- but it
does mean the firm is continually looking for ways to improve its socially
responsible business practices. Sustainable Production integrates concern for
the long-term viability of the environment, the workforce, and the community
with the financial aspects of the corporation. Sustainability is defined within the
spirit of the term sustainable development promoted by a 1987 World
Commission on Environment and Development report as development that
meets “…the needs of the present, without compromising the ability of future
generations to meet their own needs”.While defining what we mean by
sustainable development and sustainable production is essential, it is important
to emphasize that sustainability is a process as opposed to a state-of-being. No
Assignment: 2nd Semester 2012
© IMM Graduate School of Marketing
ASM401
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individual company can be completely sustainable today. But each company
can contribute by better aligning their own enterprises (and that of their
suppliers and customers).
Stonyfield Farm’s Director of Natural Resources, Nancy Hirshberg, and
President/CEO Gary Hirshberg viewed the development of sustainability
indicators as an important step in moving the company up the continuum of
sustainability. They concluded that in light of the adage “You are what you
measure”, it was clear that if Stonyfield Farm wanted to embrace sustainability,
it needed to identify ways to measure sustainable practices. In 1998 when the
project began, Stonyfield Farm had already implemented a well-developed
system of financial and quality indicators that were regularly updated and
disseminated to key stakeholders. They also had a less developed set of
environmental indicators which were regularly updated, and disseminated to a
significantly smaller group of stakeholders. It was determined that for successful
development and adoption of the sustainability indicators as a tool for improving
sustainable business practices, it would be necessary to have buy-in from all
employees, but most importantly, by management. Before management could
develop, accept and adopt sustainability indicators, there was more work to be
done in getting the management team to embrace sustainability as a business
strategy and priority for Stonyfield Farm. At the start of the collaboration, the
fast growing company had an 18-member management team, one half of whom
had been with the company for two years or less. The efforts to embrace
corporate social responsibility and sustainable business practices were being
driven largely by Gary and Nancy Hirshberg. When the Lowell Center first
approached them, they had already identified the need to undertake an initiative
with the management team, and all employees, to help them embrace
sustainability, which they had labeled the “Legacy Project”.
PRESENTATION
[10]
ASSIGNMENT TOTAL: 100
Assignment: 2nd Semester 2012
© IMM Graduate School of Marketing
ASM401