Build-A-Bear - Build a Memory, Dubai Metro Stations - Assignment Example

CASE BUILD-A-BEAR: BUILD A MEMORY Answer Build-A-Bear’s major s include young kids and children (comprising 75% girls and 25% boys) who wish to purchase stuffed animals. These young clients have different needs such as toys, scooters, colorful clothes and costumes, manual and computer games etc. so that they could fulfill their basic need of entertainment. Their wants may include every desired product and game (they wish) that has potential to amuse and entertain them. Their demands may include the most important products they are willing to pay for such as teddy bears (offered by build-a-bear and others), scooters, DVDs etc. The analysis of these above mentioned three concepts by Build-A-Bear executives enables them to devise effective innovative strategies and plans that fulfill all the basic demands of their clients while simultaneously resulting in increased brand awareness, customer satisfaction and loyalty. Answer 2: The Build-A-Bear workshop actually believes in selling an experience or personalized entertainment to its clients than just selling an ordinary product or a service for some money. Build-A-Bear is actually a workshop that allows preteens to create their teddy bears through a step-by-step production process. The first step is called “Choose me” in which a child pick an unstuffed animal followed by a second stage known as “Stuff me” in which a child a child operates a foot pedal that blows in the amount of fluff. Third stage “Hear me” is about including a voice box followed by a “Stitch me” stage in which the animal is stitched. The last two stages are known as “Dress me” and “Name me” stages in which a child has to cloth his or her animal and finally give it a nick name of their choice respectively. This workshop actually shares adorable memories of creating and preparing an animal in exchange of money. The entire process is not only enjoyable but it is being remembered by young that later compels to try this workshop again and again. Answer 3: The marketing management concept of Product Development best describes the Build-a-Bear workshop. This concept is actually a business growth strategy that aims to generate excessive revenues by offering new products to existing group of customers. The additions and offerings of new products such as mini-scooters, mascot bears, in-store galleries of bear-sized furniture, spider costumes and sequined purses based on innovative ideas of customers greatly contributed in company’s success and goal accomplishment. Furthermore, the workshop is coming up with further innovations, creations and novel solutions to become a real market leader by beating its competitors. Answer 4: Build-A-Bear has adopted the policy of empowered customers that provides greater value to customers than they would get in any other toy shop. Here, the customers are allowed to express and showcase their dexterity and creativity by producing an animal through a defined and properly labeled process. In fact, the store provides an experience of personalized entertainment that makes customers satisfied and loyal to this company. Also, the company has an emphasis over listening their young clients who provide them useful ideas and their internal desires. Customers really appreciate when their ideas are implemented and innovations are made within the stores that further enhance their loyalty. Answer 5: Yes, Build-A-Bear is likely to remain successful in continuing to build lasting customer relationships mainly because of the vision and marketing communication approach of Maxine Clark’s (the founder and Chief Executive Officer) vision who is very much penchant to know her clients in order to get new ideas and options about the product procedure and quality she offers at her 200 outlets. She then uses these ideas and implements them to attract maximum number of preteens in her stores and reap colossal sales revenue and profits. The creation of “virtual cub advisory council”, reply to customers’ emails and personal chatting has led to building strong customer relationships. In fact, the customers gave ideas about mini-scooters, mascot bears and sequined purses and their implementation helped to increase company’s popularity and its financial position. CASE 2- GREENSBURG INC. Answer 1: The primary markets for Honda Civic GX, an alternative fuel (natural gas) vehicle includes all the major cities, state and regions where natural gas is easily available and gas pumping stations can easily be formed. Some of the markets include Los Angeles, Greensburg and other surrounding areas. Answer 2: Yes, it definitely makes sense for Scholfield Honda to market their alternative fuel cars such as natural gas cars and fuel efficient cars such as Hybrid cars to a mass audience because there is enormous growth potential and business scope. It is possible to reap higher profits since it has now become difficult for masses to afford fuel/petrol/gasoline cars amid the increasing trend in prices of oil in the international market that are expected to escalate further after the economic recovery. Consumers are unable to absorb these price shocks and are therefore, looking for fuel efficient vehicles. Secondly, these natural cars are environment friendly and do not contribute to pollution unlike traditional fuel vehicles that increase the use of fossil fuels. On the negative side, use of gas reduces the efficiency of engine and its life compared to fuel so many people may not support this idea of alternative fuel vehicles. Also, a lot of investment will be required to make gas stations for easy availability of gas to customers that would not be possible in the short-run. Answer 3: Marketing Research including both primary and secondary research is extremely important before introducing a new product or service idea. The reason behind it is the fact that it enables marketers to estimate the present and future demand of that product by determining the perceptions, tastes or preferences, attitudes, demographic forces, beliefs and life styles of consumers as well as the level of competition they could face by their rival producers and sellers. In short, it enables to predict whether the product will be able to generate revenue and what are strengths, weaknesses, opportunities and threats of the product or service. Answer 4: Honda Scholfield was initially being sold in the city of Los Angeles but then Lee Lindquist, an employee of the company came up with an idea to launch Honda natural gas brand in other areas as well. Roger Scholfield then viewed Greensburg as an opportunity because it was the country’s major area with most natural gas reserves. The introduction at Greensburg was a phenomenal success; however, if venture had been a failure, it would have adversely affected the Honda Company because the story was disseminated by a media firm to the masses. So failure of Honda means the failure of alternative fuel cars’ idea in the country that would have resulted in mammoth losses and absolute debacle of a new business opportunity that would have affected the Honda’s goodwill. CASE 3- DUBAI METRO: NAMING RIGHTS TAKES A NEW TURN Answer 1: The leasing of naming rights of Dubai Metro Stations will mainly attract the large scale corporations, business groups, multinationals, transnational or supranational organizations who have a grand and global strategy of catering masses and achieving the economies of large scale productions. These businesses may include the property construction and management firms, insurance companies, commercial banks and other financial institutions, blue chip companies, Information technology firms, hardware and software producers, large-scale consumer products manufacturers and sellers, automobile producers and others etc. These businesses can get immense benefits from the leasing of naming rights including brand awareness and information, improved product image and company name, exposure to 600,000 customers that will lead to increasing demand of products because of higher purchase responses, could be an effective tool of marketing communications than any other media such as print, electronic, radio broadcasting and internet. On the flip side, some companies may not receive expected marketing benefits therefore they have to incur excessive costs from these naming rights that may escalate per unit costs while reducing their profit margins simultaneously. Answer 2: This concept of leasing the naming rights of Dubai Metro Stations can also be applied in Toronto stations. According to my understanding, the adoption and implementation of this policy will bring more benefits to companies operating in an already well-established and well-organized system compared to a new system such as Dubai. The first reason behind it is the fact that people have heavy exposure to media and advertising and they tend to remember the name of products, brands, products or services. Of course, we can conclude, from the higher population of Toronto than Dubai, the fact that more passengers travel through the stations in Toronto. So, if companies purchase naming rights, they can target more customers traveling through these stations and can be better off. CASE 4- RESTUARANTS TRY TO SERVE APPETIZING DEALS Answer 1: Reduction in one’s income will therefore affect the incomes of others at large. The tightening of global economy, credit crises and financial crunch has affected many businesses as well as consumers because businesses provide employment to people who then use that money to cover their expenditures and fulfill their personal and households’ needs and wants. This explanation pinpoints the fact that everyone is a customer in addition to his or her role as an employer or employee. Restaurants (including small, medium and large scale) are also in trouble because of the tightening of global economy and diminishing trend in their sales volume and monetary income because people are penchant to save their pennies nowadays. Restaurants, therefore, are striving to retain their existing clients by adopting rational pricing strategies to sustain their sales revenue. Some effective pricing strategies they may adopt include three course meals at lower prices with zero compromise over quality, selling fast food to consumers (this strategy for those who previously were not in junk food business), buy one get one free for some or all meals or specific dishes, introduction of different new meals for targeted market segments at just above cost prices or at very nominal profit margins to attract maximum customers, heavy discounts for clients who purchase extra meals to serve their guests, relatives etc., contacts with other businesses to supply quality food stuff for their staff on regular basis at below average market price (after covering costs and other expenses), offering free delivery of products and free gifts, and finally introducing five star restaurants’ meals and dishes at lesser prices to lure upper-middle, rich and elite segments (this strategy is for restaurants who mainly target lower middle and middle-middle classes). Answer 2: A majority of people today like to visit restaurants to have breakfast, lunch, dinner, hi-tea or to party with their family, friends, relatives, co-workers, partners etc. They have an inclination to spend money for quality food, drinks and a refreshing environment so that they could refresh themselves after their soporific routines and hectic schedules. Restaurants, therefore, serve as places that filled them with energy and throw their tiredness out. After taking into consideration this major perception among customers, it is worthwhile to mention that quality (as well as price) is the most important factor that leads to a restaurant’s success or failure. Offering high quality products at higher prices may lure a specific group of rich and elites who don’t compromise at quality and are ready to pay more for their satisfaction. This can definitely lead to success (3-, 4-, 5- and 7-star hotels and restaurants who follow this principle are clear examples of success). Similarly, offering high quality and medium quality food products at just above average, competitive or affordable rates also has great impact on this industry because it attracts a large pool of people towards restaurants and leads to sustainable development. Lastly, those restaurants that offer low quality products at lower prices or at just higher prices are among the ones who lose out in this era of stiff competition where globalization and media have changed the perceptions, attitudes, beliefs, wants and desires of the customers. Read More