Modern Internet Phenomenon - Case Study Example

Running head: MARKETING CASES Marketing Cases [Writer’s name] [Institution’s name] Marketing Cases Case 1 Answer 1 You Tube, is one of the classic examples of a modern internet phenomenon. It allows residential customers particularly for the young generation by providing them the facility to expose their hidden talent as a home movie maker from weird to wonderful material, from obscure bands to tearful videos, diaries and so on. They upload home videos on You Tube and due to the big contribution of the audience they often produce content that attract new viewers and it continues in a virtuous cycle. Besides the residential customers, it provides a strong platform to many business entities to promote their business and grow rapidly on the internet. As this technology began to get popular, advertisers were quick to recognize its strengths and as a result renowned advertisers like Nike and Carlsberg began uploading their advertisements on the site. It also made it easier for bloggers and others to grab a video from the YouTube and place it on their own websites or WebPages, extending the reach of its content to a large number of audiences. Answer2 Websites like YouTube are social networking site on which organizations can interact with the consumers personally. Organizations add information about their products and through social networking sites; products/companies can have conversations and interactions with individual followers Answer 3 You tube will face two major challenges in the future which is as: One of the biggest challenges is the legal issues i.e. Copy right issues. Most of the companies put forth arguments that the videos that are uploaded on YouTube may be violating copyright laws. To overcome this big challenge, YouTube will have to upload copyrighted contents and implement audio fingerprinting to guarantee this music companies will be paid for the use of their songs. Due to the dubious quality, duplication and incomplete videos, YouTube will see a significant decrease in popularity anytime in the near future. To overcome this challenge, YouTube will have take certain measures regarding video quality, reject duplication and that the video will run till the end with interruption like Metacafe. With the technical and legal challenges facing YouTube, its future is unpredictable and uncertain .The worst scenario is that it may become the next Napster. Case 2 Answer1 Environmental trends which Innocent ltd used to capture the market are as under: Trends toward healthier life (Lifestyle) by using 100% fresh fruit in their Smoothies -Trends toward sustainability and care for environment by supporting rain forest alliances and making it apart of their strategic decisions They also used 25% recycled paper for their labels. They set up the Innocent foundation which worked with women world wide and micro loan foundation. Recently supermarkets knitted small hats and placed them on Innocent Ltd smoothie bottles , all donations went to the old aged Answer 2 The evaluation of the marketing mix along the strengths and weakness as under: It’s coherent, in that it’s all focused on a particular type of customer – well-off, food-conscious young adults – so pricing is high, the product is extra special, the distribution is highly effective (including Tesco) and it’s backed by strong promotion It seems based on a long term vision, to build the consumer image in line with the founders’ wish for people to be passionate about Innocent (in effect, to feel good about themselves when they’re parting with their money) But the mix is highly elitist, assuming that fresh fruit Smoothies are only for a particular type of person (whereas Tropican orange juice is classy stuff, but aimed at everyone) Answer3 Innocent’s relationship with their customer is as given under: Their aim was to interact personally with customers to build a strong relationship with them. In each strategy used like the fruit stock concert and faulty towers recipe competition , Innocent has maximized the impact of design and branding to communicate a set of clearly defined values, strengthening the relationship with its customers and creating a community of consumers that grows bigger every year. Answer4 Innocent may be considered as an ethical company due to the following: All bananas are bought from plantations which have been accredited by the Rainforest Alliance. this is an ethical auditing body which looked at farmers rights and wellbeing as well as protecting co systems on the farm thus encouraging biodiversity 100% recyclable material is used in packing and labeling. The bottle are made from recycled plastic the bottles are from polyethylene which is also recyclable and the labels are made of 25% recycled paper and 75% paper which has been certified from the forest stewardship council In 2007 Innocent stared measuring it’s worker’s carbon foot prints from the farm to fridge to recycling bin. This also encouraged other companies to go green. . Case 3 Answer 1 Buying decision process for key retailers is as follows: the buying starts from the designing department where range of clothes are designed then a meeting is held for the buyers in which the buyers select designs which are to be ,made for prototype sampling from the suppliers . Then the buying team sets price for the designs and then at a team meeting the samples are presented. Answer 2 The buying process seems to be prefect however a little improvement can be made i.e. The buyer should quote a price for the design only after the design becomes reality designs only on paper may not fit the price. This improvement in the process may be beneficial to both the company and the buyer as they will be getting their fair shares worth. Answer3 Factors influencing behavior of Oasis buyers .are as follows: The company describes its range as being wearable and able to transcend seasons while being fashionable It combines fashionably and practicality Is of top quality and the style remains in season Answer 4 The behavior of consumer buyers influences the fashion buyers in outlets due to the following reasons: They only launch and but those fashion appeals which will attract the customer. The customer’s attitudes and taste are kept in mind while buying designs for the outlet. Case4 Answer1 The important research objective for Inchydoney Island Lodge and Spa is as Follows: To find out the importance of thalassotherapy to Irish customers What differentiates Inchydoney from other European thalassotherapy saps Buyers outsource their manufacturing in different countries. Answer 2 The potential sources for secondary data will be articles and the web net. Apart from this survey questionnaires which have been conducted in the past may serve as important sources of information to research the Irish and international market. Answer3 In order to find out the importance of thalassotherapy to Irish customers secondary data shall be used. This data will consist of past surveys conducted on the importance of thalassotherapy to Irish customers. This kind of data has been selected due to the fact that the consumer attitude towards thalassotherapy had to be studied. The data will then be analyzed and then concluded with assumptions as to if the therapy will be successful amongst Irish customers or not. In order to find out how Inchydoney is different from other European thalassotherapy spas secondary data shall be used. This data shall consist of information taken from articles and the web net. The information will about different Spas in Europe and the services they offer. The collected information will then be compared to the services of Inchydoney. This comparison will help Inchydoney to analyze it’s position in the market, not only this it may also help it to introduce more and innovative services. They may also come to know how many people will visit their Spa Here also no sample will be used only information regarding Spas has been extracted. Case 5 Answer 1 The marketing segments according to the consumer attitudes are as follows: The first sub segment is the fashion traditionalist. This segment represents the conservative luxury customer who values high levels of quality and service. The second sub segment is the fashion leaders. They are trend setter for who image matters. They want to stay one step head of their peers and are more likely to buy brands that are based on style. The third sub segment is Fashion Followers. They are self stylists who are happy to mix and match clothes bought at high street retailers like Zara and Mango with up market designer brands. They may spend more on selected items to fulfill their inspirational needs. Answer2 Teens are a valuable marketing segment. The extent to which they may be important for the fashion industry is given under: Teens have become increasingly independent as they have started to experiment with luxury brands. They adore brands a and worship shopping They have their own finical resources and the ability to persuade their parents and guardians to subsidize occasional extravagance. The above may be supported by marketing research carried out by NPD group. It showed that designer labels account to approximately 15% of the 13-17 year old population of the United States. Answer 3 Up-to-date the market targeting strategy which has been followed is concentrated strategy. In this kind of market target strategy only one market segment is targeted using a single one marketing mix. The luxury fashion industry in the past has always been for people who could afford it. The labels only targeted a certain population i.e. the affluent segment. The old market targeting strategy needs to change due to the following reasons The consumption of today’s market place is complex and prevalent. There seems to be something for every one. Now even well known labels have to be exclusive and authentic in their creations as they have to appeal the mainstream market. Luxury market is no more segmented in to two extremes , the prestige and mass marketing Different levels ranging from ultra luxury to affordable luxury is an example of mass appeal. Case 6 Answer1 Gorenje is a Slovenian appliance manufacturer it survived and thrived in the post cold war era. After forming an alliance with well known names like Ora Ito and Swarovski it produced innovative brands which made a name in the market The strengths and weakness as follows: Strengths: The importance of design was added to it’s focus on cost efficiency, leading to development of appliances for upper/lower class. Because of the alliance with the ward winning designers it has now grown into a household name. In an era when low cost labour was needed the alliance helped them, while other companies had to turn to China for outsourcing. Weakness: Innovation might be it’s height but Gorenje will never is regarded as the sole owner of this creativity Answer2 The brand values of Gorenje are as follows Their products are technically sophisticated They give five year parts and labor guarantee , this highlights their focus on building high quality and reliable appliance Their products are cost effective. Their products are user –environmental friendly appliances for the home. Answer3 The key management issues facing the company are as follows: Trying to woo the heart and minds as well as the wallets of European customers Trying to build a positive brand image among the top competitors of the market who have huge budgets for marketing and production. Answer4 Gorenji‘s product portfolio is has a wide width with an average depth. This may be evaluated due to the fact that it may have a lot of product lines but the products within the line do not have variety. The variety they have is quite average like in TV they may only have the normal plasma or LCD nothing new added. However one may note that they are trying to improve the depth of their product line but introducing the new fridge. Changes have to made in the product portfolio so that the company can differentiate it’s product portfolio among the top competitors of the market. This may be possible by the following recommendations: It must try to create a premium brand image while considering it’s sub brands as well, the supply of it’s won label products and it’s co branding. Incentives. They also need to achieve necessary volume of sales to reap the economy scale. Case 7 Answer 1 The betting business has greatly changed over the years; the technological changes which it has gone through are as follows: The retail face of the business has changed by designing bigger and better outlets. The industry was revolutionized by the internet Online betting has grown a great deal and has managed to attract customer who felt uncomfortable going to betting shops like females and the young generation The betting business implemented the use of internet so that it could attract more then just a few customers who preferred to stay out all night. The industry then implemented more strategies like increased it’s betting variety i.e. Now not only was the betting done on horse but on every thing from who would be the winner of the reality TV to who would be the next celebrity boy or girl . Answer 2 Paddy power s started off in 1998 with a merger then it’s image was as high street book maker by 2000 it launched it’s own website www.paddypower.com then by 2004 it lunched another website paddycasnio.com. It also introduced paddybingo.com and paddytrader.com. By 2005 it had capitalized the market of online poker. Answer 3 Service market mix was based on: Creating an image in the new and existing market To create a fun image in the market Raise the profile of it’s betting services Recruit active and loyal users for it’s service It carters all segments all around the globe. The price is free the promotion usually consist of fun betting like who will be the next US president apart from this it sponsored the world’s first father Ted festival Strengths It has a fun image It caters all segments People can even participate sitting form their home as they have online services as well Weakness At time paddy powers service mix may be even encourage habitual gambling which is not something healthy. Answer4 Paddy power has always worked hard to build relationships with it’s customers. Infact they have made it a key part of their marketing activity. Like their website launched the Bet and Watch option in which the viewers could watch and bet on every horse race in Ireland and UK. Apart from this they provided other services like poker tutorials were given to educate the customers about the game. They have been extremely successful in building a relationship with the customers as they did not only target high value customers but provided something for every one while keeping their fun image alive. Answer 5 The advertising tactics used were banned by the Advertising Standards Authority in UK and Ireland the fact that they were tiring to maintain a fun image made them go forget the ethical standards provided by the Advertising Standards Authority. Apart from this it was even morally unethical to make such an advert which involved old people crossing the road while being approach by an upcoming truck. Even if they argued that they were betting on who would cross first it was not portrayed in that manner. They tried to exploit the fun image through controversial advertising. As they also disregarded the emotions of viewers who were religious in nature when they showed Jesus gambling using Da Vinci’s painting of Last Supper. Here also, in their attempt to portray a fun image they forgot that it was ethically wrong to do so. Case 8 Answer 1 No, as they are competing in the same market they do not rely on the same methods of setting the initial price of their consoles. Plus the features of all three consoles were different. Answer2 The key factors which influenced the three firm’s price-setting decisions are as follows: Product design i.e. The features present in the three consoles The place or country in which the console was introduced Campaigns for the Promotion of the consoles Answer3 Price-changing strategies of Sony and Microsoft The price changing strategies of Sony and Microsoft started off with selling their consoles at a high price which was not feasible for the average consumer. When Sony’s consoles stocks were short in the market people resold it for their own profit . As both consoles were expensive their sale volume was low and this was affecting their profits . Thus, they had to lower their price so that the volume of sales and profit would increase. Nintendo’s decision not to decrease the price of its Wii Nintendo’s decision not to decrease the price of its Wii was a correct one. Infact it started off by keeping the price of it’s console comparatively low then Microsoft and Sony . Plus this decision was a good because it had focused on it’s main objective o only create a gaming machine and nothing more. Thus, it could set a low price and did not face any barriers when it came to the price like Sony and Microsoft. Case 9 Positioning strategies employed by Nike were basically based on the fact that they had to use a competitive positioning strategy . Their strategy was as follows: In order to position itself in the market it first introduced the Air Jordan using Michel Jordan . thus now the shoe was associated to star, customer and the sport Then to set a position in the market is decided to attack the small brands first then hit Adidas and puma . the small brands were Umbro, Lotto and Kappa It knew it was finically stronger then these three small shareholders f the market so it used its expenditure to move ahead of them a example of this is that during the world cup the Brazilian team was sponsored by Umbro but Nike convinced 10 members of the team to wear their shoes for $200,000 each It launched expensive advertising campaigns with a lot of special effects and used famous Footstar as their brand ambassadors. Position strategy by Adidas: Purchased Reebok It started to do research and development and designed more innovative shoes like ‘One’, an intelligently light shoe which included a microchip and cost euro 250each Then they drastically increased their expenditure on advertising and used starts like Zidane Beckman Become official equipment manufacturer for the foot ball world cup 2006 Difference in the Strategies Both strategies were very different as both companies had different objectives. Nike had to position itself in a market where Adidas already ruled. So it employed amore competitive strategy Whereas Adidas had to reposition it’s self so it’s strategy was based on improvement of it’s products and then on loud and expensive advertising. Answer 2 Both companies redefined sports goods business by making their marketing campaigns so high fi that it even attracted the normal consumer both companies originally manufactured and promoted their products for the sports good industry but this situation progressively evolved as more and more young consumers used their products as everyday fashion clothing Answer3 The most aggressive promotional strategies implemented by Adidas and Nike were seen in 2006: Promotional Campaign of Adidas Adidas perused nothing is impossible campaign It used athletes of yesterday and compared them to their counter parts They portrayed friendliness and simplicity which Adidas believed were associated with football The +10 campaign was not only limited to TV commercials, they even used internet and with a partnership with Google earth made consumers answer questions and search for stadiums on Google earth Promotional Campaign of Nike Nike started the Joga Bonito campaign for the world cup 2006. It spent US 100 million dollars on the campaign The campaigns included a TV commercials, SMS, posters and magazines which were centered on a website which was social network for football fans which was launched by Google. It also launched Joga TV whose presenter was Eric Cantona It was a different way to attract consumers from the traditional top down mass media messages. Nike is figuring out what kind of micro content consumers like and thus is nurturing deeper bonds of loyalty and advocacy with the customer. Nike enhanced it’s communication innovation after Zidane butt headed Materazzi in the 2006 world cup. Answer 4 Strengths Nikes promotional strategy was extremely innovative It made use of all kinds of media Weakness The campaigns were extremely expensive Mostly targeted at football Strengths of Adidas They were extremely innovative They even attracted customers who were not interested in the sports by their +10 campaign They used all kinds of media Weakness Their campaigns were not as aggressive as Nike’s were. They did not use a heavy budget as compared to Nike. Case 10 Answer 1 Elements used in the buzz marketing of red bull are as follows: Redbull completely innovated on the various elements of the marketing mix including the product itself. It used innovative marketing strategies including positioning drink as a drink that invigorated the mind and body . in words an energy drink It adopted an unconventional strategies It also paid a lot of attention to the people element of the marketing mix. Answer2 The company’s sales people played an important role in building the brand. When ever they entered a new market the sale people would provide free cases of drinks to influential, trendsetting college students and would encourage them to throw a party for their friends . Once the drink would be introduced by the sales people to the new target population then the entry I that market would also be easy. Sales reps were tied ups with distributors in key locations Sales reps opened Kiosks to sell drinks Answer 3 The roles played by direct communication technique The direct communication strategy initially helped red bull to gain a position in the market one such example the role of the sales rep. It gave Red bull starting point in the market The roles played by direct communication technique The indirect strategies proved to be more fruitful as it used these strategies once had gained a position in the market. It increased their sales. They used traditional means of indirect marketing through adverting however they gave an innovative touch to it by making it animated. Answer4 The marketing strategy of red bull should now switch over to amore health orientated theme. One that shows how healthy the drink is. The fact that customers are losing their interest in the drink especially the no sugar one more marketing needs to be done in that area new and more innovative flavors should be introduced Case 11 Answer 1 IKEAS positioning IKEA positioning strategy was based on the following: They build stores outside urban areas to give customers complete shopping experience. apart from this the stores would have a lot of space so then the customers could easily see the products They introduced innovative products They had competitive prices They build a cafeteria in their shops so that the customers would not think of leaving the shop even when they were hungry. Thus, they would continue their shopping form where they left out. It had supply chains all over the world. Global Appeal IKEA succeed in achieving global appeal as it offers its standard product worldwide and makes adjustments accordingly. Apart from this it even keeps the design of their stores the same world wide. The main element of their core strategy are always standardized and coordinated and integrated across countries. Answer2 Key features of their shops are as follows: The shops were opened outside urban areas to ensure a complete shopping experience The buildings were blue and yellow and were on about 300,000 square feet and could store 7000 items A play area so that parents could do their shopping without being interrupted by their children The building is circle in shape so the shopper can view the products easily. The wide passage way allows the shoppers to examine the furniture. The products are displayed in such a manner that the shoppers fell the urge to buy something The building has cafeteria so that the shoppers do not get interrupted by their hunger and leave the building. Finally the customers furniture is taken to the warehouse where it is packed . Competitive advantage due to the stores The atmosphere of IKEAS stores attracted a lot of customers. The stores did wonders for it’s popularity and attracted a lot of crowds world wide. This was due to the fact that no other furniture store had such a comfortable and innovative environment . Shoppers would have the urge to shop and revisit it due to the atmosphere of the store apart from this the competitive prices was an added value. Answer3 The physical distribution system plays an import role in the success of IKEA. This is due to the fact that their distribution system was based on a global network which allowed IKEA to make use of resources even in low cost countries. Answer4 IKEA became a victim of it’s own popularity due to the following: It was criticized for the terrific jam and over crowding at their store openings. These openings attracted a lot of frenzied crowds. At time the people went crazy over the gift vouchers which were being distributed and this caused stampedes which in turn caused many to be hospitalized and some even lost their lives. Apart from this they were even criticized for their quality of service in their stores. Due to over crowding people had to wait inline for long period of time some even left without buying the products. As they had to wait in line too long. Case 12 Answer1 Lego encountered serious finical difficulties in the early part of the decade due to following reasons: The toy market had changed as young children were attracted to technology based toys like computer games and MP3 players. Fierce Competition had increased with toys made at cheap prices in low -cost countries which eroded the margin Answer 2 Swot analysis Strengths The company and product has it’s own history which has passed on to generation to generation,. Thus, attaching the future generation to the product as well. A brand that has sub-groups of products which attracts many customers. Weakness Creation of products which do not have latest technology. Even in the past this weakness has affected company’s performance. Opportunities Lego has a strong team of experts and innovators who can introduce new and innovative ideas for their products. The constant introduction of new cartoon characters and young personalities provides a strong opportunity for the company to create further more licensing agreements. Threats Hi-Tech products and companies, like Sony and Apple and Microsoft may serve as a threat to Lego as it still only produces building blocks which at times become monotonous to young children. Answer 3 The competitive strategy was a back to basic strategy. They targeted their original costumers i.e. boys aged 5-9 a long with this they even started targeting new population i.e. the female population. This meant that Lego was becoming innovative with it’s products. Their strategy was directed now more towards the product. The fact that they change the packing adverting of the product meant the strategy was going towards a creative turn. They gave an educational touch. in their product Read More