Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
1
Reader Chapter
1
________________________
Case
Macy’s: Developing Marketing Plan to Target Bridal Market
Complete the table below. Use your best judgment if the data is not given explicitly in the case.
Section
I. Executive Summary
Comments
How would you summarize the plan? (Do this section last)
II. Situation Analysis
Conduct a PEST analysis for Macy’s:
Political
Economic:
Social:
Technological:
Conduct a SWOT analysis for Macy’s:
Strengths:
Weaknesses:
Opportunities:
Threats:
III. Customer Analysis
Conduct a STP analysis for Macy’s:
Segmentation: What different segments do department stores address?
Targeting: Which segment is Macy’s targeting?
Positioning: How is Macy’s positioning itself to address the target segment?
IV. Objectives, Market
Potential, Forecast
State Macy’s objective in SMART format:
Example: Increase sales of Q9 cosmetic in 40-50 segment (Specific) by 10%
(Measurable) with existing stores (Achievable) with no cuts to existing marketing
resources (Realistic) by the end of the calendar year (Time-based).
Specific:
Measurable:
Achievable:
Realistic:
Time-Based:
V. Marketing Strategy
What would you recommend for Macy’s 4P Marketing Strategy?
Product (Which merchandise should they carry?)
Price (How should they price the merchandise?)
Place (Which distribution channels should they emphasize to sell the products?)
Promotion (How should they promote the merchandise?)
VI. Finance & Control
What financial metrics could you use to monitor Macy’s performance?
VII. Recommendations
What are your top 3 recommendations for Macy’s?
© Stephan Sorger, 2010
www.stephansorger.com
1
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
2
Reader Chapter
2
________________________
Case
Song: Delta Airlines Subsidiary to Meet Airline Industry Challenges
1. Complete the table below, describing the characteristics of the passenger airline industry.
Characteristic
Life Cycle
Comments
Size
Growth
Cyclicity
Seasonality
2. Complete the table below, discussing the 5 forces of the Porter industry attractiveness model.
Force
Power of Customers
Comments
Power of Suppliers
Power of Substitutes
Threat of New
Entrants
Rivalry
3. Conduct a PEST analysis for the passenger airline industry.
PEST Component
Political
Comments
Economic
Social
Technological
© Stephan Sorger, 2010
www.stephansorger.com
2
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
3
Reader Chapter
3
________________________
Case
Subaru: Quirky Brand in a Highly Competitive Market
1. Conduct a brief company analysis on Subaru using the table below.
Characteristic
Identity/ Focus
Comments
Go To Market
Value Proposition
Strengths
Weaknesses
Opportunities
Threats
2. Complete the competition identification grid below for Subaru.
Level
Direct Competitors
Comments
Indirect Competitors
Need-based
Competitors
Budget Competitors
3. Complete the competitive comparison table below.
Level
Positioning
Subaru
Toyota
Pick any: Kia, Nissan,..
Target Market
Differential Advantage
Value Chain Element
Emphasized
Predicted Strategy
© Stephan Sorger, 2010
www.stephansorger.com
3
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
4
Reader Chapter
4
________________________
Case
Bliss: Day Spa Catering to Consumers
EATON: Industrial Goods Company Selling to Variety of Businesses
1. Complete the table below describing the attributes of the typical Bliss day spa consumer.
Attribute
Who buys Bliss
services?
What does the
consumer buy?
Where do they look for
information?
When do consumers
buy day spa services?
Why do consumers
select a certain spa?
How is the decision
made to select Bliss?
Comments
2. Describe how the attributes below influence the consumer’s decision to purchase Bliss day spa services.
Attribute
How does culture
influence decision?
How do social groups
influence decision?
How do personal
values influence dec.?
What motivates a
person to buy Bliss?
How do consumers
perceive Bliss ads?
How do consumers
remember Bliss ads?
Comments
3. One of the many products EATON makes is circuit breakers for electrical panels in commercial buildings.
Commercial buildings are generally maintained by property management firms, who employ the following
people: Building supervisor, Maintenance person, Maintenance engineers, Managers, Vice Presidents, and
Buyers. Who all would be involved in selecting an EATON breaker and how would you market to them?
Role in Decision
Initiator: Person who
identifies need
User: Person who
actually uses product
Influencer: Person who
provides information
Decider: Person who
decides requirements
Approver: Person who
authorizes purchase
Buyer: Person who
executes purchase
Title of Person
© Stephan Sorger, 2010
Marketing Approach
www.stephansorger.com
4
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
5
Reader Chapter
5
________________________
Case
Marriott: Segmentation of the Hotel Market
Nextel: Positioning in the Cell Phone Carrier Market
1. Identify segments of the hotel market using the segmentation approaches shown in the table below.
Approaches
Geographic
Segments
Demographic
Psychographic
Behavioral
2. Identify different positioning approaches for the cell phone carrier market. State example companies for
each approach such as Verizon, AT&T/Cingular, T-Mobile, Sprint, Nextel, Virgin, Boost, and Metro PCS.
Approach
Usage
Positioning Concept
Example: Position as “Pay As You
Go”, where consumers pay only for
the minutes they use.
Example Company
Example: Metro PCS Prepaid
(Other carriers also sell prepaid plans)
Attributes
Classes of Users
Away from
Competitors
Niche
Geography
Benefits
© Stephan Sorger, 2010
www.stephansorger.com
5
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
6
Reader Chapter
6
________________________
Case
Market Demand & Sales Forecasting Exercise
1. The table below summarizes NAICS information for four potential markets for searchlights. The table also
shows how much each market has spent on searchlights in the past, as a percentage of total revenue.
Estimate the total market demand using the market buildup method
NAICS Code
Description
488119
512110
441120
336611
Airport operations
Motion picture production
Used auto dealers
Ship building & repair
Total Revenue
$3,250,155
$20,152,091
$34,680,468
$10,542,961
Searchlight Spending
4% of total revenue
2% of total revenue
1% of total revenue
3% of total revenue
Calculations
2. Estimate sales for 2010 using regression analysis and the historical sales data given in the table below:
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Sales
$400
$500
$700
$1,000
$1,500
$2,000
$1,900
$2,500
$2,800
© Stephan Sorger, 2010
www.stephansorger.com
6
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
7
Reader Chapter
7
________________________
Case
eGo Bikes: Going Green with Product Strategy
DSSI and Gulf Power: Price Discrimination for Electric Power
1. Evaluate eGo’s efforts using the Building Product Brands criteria in the table below.
Brand Criterion
Identity:
Who is brand?
Efforts to Build Product Brand
Elements:
How do I recognize it?
Communication:
How do others know?
Distribution:
Where to I buy it?
Management:
How brand managed?
2. Evaluate Gulf Power’s pricing strategy, where Gulf uses the DSSI meter system to increase electricity
prices at peak demand times (hot Florida afternoons) and less at low-demand times (late at night).
Element
Objective:
What is Gulf Power’s
pricing goal?
Comments
Sensitivity:
How does demand
vary?
Costs:
How are Gulf’s costs
determined?
Competition:
What competitors does
Gulf Power face?
Pricing Method:
What method did Gulf
decide to use?
Setting the Price:
How does Gulf Power
set its price for power?
© Stephan Sorger, 2010
www.stephansorger.com
7
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
8
Reader Chapter
8
________________________
Case
Hasbro: Distribution Channel Strategy for Games & Toys
Motorola: “Moto” Cell Phone Advertising Campaign
1. Assess Hasbro’s channel strategy using the evaluation grid below.
Criterion
Push: How are
channels targeted?
Channel Strategy Assessment
Pull: How are
consumers targeted?
Channels: What types
of channels are used?
Retail, outlet, Internet..
Channels: What levels
of channels are used?
Intensity: Is distribution
exclusive, selective, or
intensive?
Conflict: How is
channel conflict
avoided?
2. Assess the effectiveness of the various communication vehicles used in Motorola’s “Moto” campaign.
Criterion
Advertising
Channel Strategy Assessment
Sales Promotion
Events
Public Relations
Internet
Word of Mouth
Personal Selling
© Stephan Sorger, 2010
www.stephansorger.com
8
Marketing Planning: Case Study
Name: ____________________
Date:
Exercise
9
Reader Chapter
9
________________________
Case
Dunkin’ Donuts: Monitoring Growth of a Popular Franchise
1. Indicate how the following finance and control instruments could be used to monitor and control Dunkin’
Donuts’ expansion into overseas markets.
Instrument
Start-Up Costs
Usage to Monitor Financial Integrity During International Expansion
Break-Even Point
Pro Forma Profit and
Loss
Pro Forma Balance
Sheet
Marketing Budget
Financial Ratios
Control Charts
Dashboards
2. Develop several negative scenarios that might occur during Dunkin’ Donuts’ overseas expansion, as well
as contingency plan actions and triggers if those scenarios were to occur.
Negative Scenario
Contingency Plan Trigger
© Stephan Sorger, 2010
Contingency Plan Actions
www.stephansorger.com
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