Circular Distributors: A Case Study Table of Contents Table of Contents 2 Facts of the Case 3 Analysis for New Service Development strategy 4 Marketing Analysis 5 Competitor Analysis 6 Internal Analysis 7 Segmentation, Targeting, and Positioning 8 Locating CD in the Ansoff Matrix 10 Strategic choices 12 Market Positioning (Diversity/Complexity) 13 Marketing Plan (7 Ps of Services Marketing by Lovelock, 2001) 14 References 15 Facts of the Case Circular Distributors, Ltd…
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One-third of revenues is from advertising, one-third from companies distributing products through gift packs, and one-third from sales of consumer information. Spin-off publication “One Step Ahead” is likewise successful. The firm upgraded by changing its name to CD Marketing Services, while maintaining “Circular Distributions” for the existing door-to-door distribution. Under CD Marketing , Lifestyle Marketing brand concentrated on the sale of marketing information, and invested heavily in new technological capacity; ?400,000 of investment reaped additional ?33 million in sales and ?2.4 million in profits. Two new publications are Emma’s Diary Pre-School Guide and Married Life…The Small Print, which both attracted higher than average response rate and additional revenue through advertising and sample packs. More importantly, the new publications aimed to collect new data and build a database about its consumers. CD publications enjoyed a high response rate. Services offered by Lifecycle Marketing were availed of most especially by financial services and home shopping businesses. These services include: Segmented lists of consumers that organizations can rent for one-off use Licenses by which other organizations may incorporate CD’s data in their own databases Inclusion by client-companies of specific questions in its publications; the data generated shall be for the contracting client’s exclusive use Later, the firm embarked on systematically supplying information to companies as a regular activity. In the meantime, the traditional fmcg business was still strong, and the company is ways by which it can be improved. New clients were attracted by the door-to-door service include Internet Service Providers which distributed free CD ROMS to targeted households. The Analysis for New Service Development strategy During its early days, Circular Distributors distributed generic products in a homogeneous market, for trial purposes that, it was hoped, would encourage future purchases. The company eventually developed the B2B consumer information service by which data it has gathered from its consumers are organized, packaged and sold to companies. Somewhere in between the company has been able to successfully create four publications, the latter two of which are used to gather data from consumers who are constantly expanding due to lifestyle changes. All three types of services – door-to-door distribution, publications, and information databasing and sales – are growing significantly, but while information sales is highly competitive because of the number of players already established in the industry, door-to-door distribution and publications have a huge following but few competitors. These three classes of services shall be analysed in the following discussion. Marketing Analysis Size – The market size for the door-to-door delivery service is substantial, but due to the physical nature of the service reliance on manpower limits the extent of the service and the geographical scope is limited. Publications would have a wider reach, as far as GPs (for obstetrics and paediatrics), vicars (for weddings), registrars (for births) and similar channels of survey questionnaire
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