Marketing

  • Category:
    Marketing
  • Document type:
    Math Problem
  • Level:
    High School
  • Page:
    4
  • Words:
    2565

Student:

Case Studies Summaries

Question 1

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about Hoyts innovation in services delivery in the movie entertainment industry. The case provides a preview of how the company has continuously diversified and remodelled its strategic plans to fit with changing customer preferences.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

Hoyts an Australian entertainment brand that is concerned with providing film entertainment via cinemas, movie rentals, and streaming. Hoyts distributes its movies via the major channels; Cinemas, Movie rentals, and streaming.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

The marketing concept in this case study is service distribution.

  1. Make comments about how marketing theories/concepts were applied in this case.

An innovative approach to distribution of service is usually a major contributor to the success of a service organisation. Efficient distribution channels offer customers valuable convenience that they are willing to pay for [ CITATION Lov15 p 155 l 1033 ]. In this case, Hoyts developed several strategies including movie rentals and streaming to ensure its consumers can access its services conveniently and affordably.

  1. Answer the question(s) at the end of the case study.

Hoyts has successfully explored different service distribution strategies to grow the business. the rental business supplements the income generated from cinema shows. Streaming is a convenient approach towards serving the busy and mobile segment of the target market.

Question 2

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about Linfox expansion and growth in the Asia-Pacific region. Specifically, the case covers the company’s operational strategies and activities in India and Malaysia.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

The brand in the case study is Linfox. Linfox is an Australian logistics solutions provider with operations throughout Asia and the pacific region. Linfox has more than 23,000 employees engaged in warehousing, transportation and handling of commodities for several companies including Unilever, Tata and Procter and Gamble.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

The marketing concept in this case study is distribution.

  1. Make comments about how marketing theories/concepts were applied in this case.

Distribution is key element in a marketing mix. Distributions complements the other marketing mix elements by ensuring that a product reaches the target market conveniently, timely and in a good condition. Efficient distribution cuts operational expenses and improves value chain productivity for companies [ CITATION Tob12 p 193 l 1033 ]. Linfox offers logistics solutions such as warehousing and distribution of finished goods to ensure companies are able to serve their markets efficiently.

  1. Answer the question(s) at the end of the case study.

Linfox offers warehousing services, documentation, loading, transportation, and logistics management to its clients. These services enable its clients to have efficient and cost-effective operations in servicing their markets.

Asia has varying climatic conditions and cultures from one country to the other. Malaysia and Singapore have a significant Islamic population that may demand a special in handling food items. The climate in southeast parts of India is mostly hot and humid, which is different from the hot tropical climate of Australia. Linfox should consider such climatic variations in developing operational plans for particularly for companies that deal with perishable food items.

Linfox can become a regional leader in Asian logistics by understanding the unique challenges that each major Asian country presents in terms of logistics. By overcoming such challenges, Linfox will be able to increase its market share and be a market leader in Asian logistics.

Question 3

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about product innovation in the Australian alcoholic beverages market. Low profit margins in the beer category necessitated manufacturers to consider introducing affordable but profitable premixed spirits in the market.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

There are no mentioned brands in the case study. It only refers to manufacturers and distributors of alcoholic beverages in Australia.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

Product innovation and pricing strategy are the main marketing concepts in the case.

  1. Make comments about how marketing theories/concepts were applied in this case.

Alcoholic beverages manufacturers have developed an innovative product that is a cheaper premixed spirit that offers consumers a premium experience at an affordable price. Manufacturers and distributors are able to diversify and increase their revenue generation capacity.

By reducing the production cost to the minimum, alcoholic beverages manufacturers can pursue and economic pricing strategy that offers customers an affordable alternative that is equally profitable to the company.

  1. Answer the question(s) at the end of the case study.

The downside to retailers in the shift from beer to spirit-based drinks is that they have to pay more for stock thus exposing them to inventory risks such as theft, damage and fluctuating demand. The retailers may also experience working capital challenges by having a significant share of their money held up by a single inventory item.

Question 4

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about price-based competition by Woolworths and Coles supermarkets on milk. The two giant supermarkets lowered their price for one litre of milk to $1 at the same time in line with their price-based competition strategies. The actions had far-reaching negative impact in the industry in terms of low returns for farmers and the retailers as well.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

The brands in the case study are Woolworths and Coles supermarket that jointly control over 70% of the grocery market in Australia.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

Pricing strategy is the main marketing concept in the case study. It relates to the use of pricing as an element to complement the other marketing mix elements (product, promotion and distribution).

  1. Make comments about how marketing theories/concepts were applied in this case.

Price-based competition is usually adopted to support the competitive strategy of a business. In the case study, Coles lowered it milk prices to attract and retain customers. Fearing loss of market share, Woolworths adopted a similar strategy. The two companies’ choice of competitive strategy is detrimental to the industry as the profit margins will be low leading to losses and low returns to farmers. Ideally, alternative competitive strategies should be explored before price-based competition is considered [ CITATION Rob111 p 34 l 1033 ].

  1. Answer the question(s) at the end of the case study.

The demand for milk in Australia is elastic since 100-litre annual increase in sales volume was recorded after the reduction in prices by Coles and Woolworths. Goods with elastic demand record increased sales with price reduction and low demand when prices are hiked.

The two companies engage in a mix of predatory, competitive and economy pricing strategies. A predatory price refers to setting prices as low as reasonably possible to edge out competition. Competitive strategy involves offering similar prices as the competitor. Economy strategy refers to offering low prices for private label products.

Coles and Woolworths are likely to increase prices gradually to recover their losses from the price undercutting.

Coles strategy has been successful in maintaining its market share but has been generally less profitable for the company since the value of sales dropped by 2%.

Marketers should consider value chain sustainability when setting pricing strategies. For example price-based competition is likely to reduce farmers’ returns adversely due to exploitive sourcing practices by large retailers.

Question 5

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about the impressive growth in profit by the leading banks of Australia and specifically the Commonwealth Bank of Australia, which posted $7.8 billion in earnings for 2012-2013 financial year. It is not clearly evident whether the high profitability is a result of customer satisfaction or lack of competition.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

While the case refers to leading four banks in Australia, it specifically mentions the Commonwealth Bank of Australia (CBA). CBA is a multinational bank that operates in Australia, Fiji, USA, and the UK. CBA offers financial services such as retail banking, funds management, investment banking among others.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

Some of the marketing concepts in the case include measurement of customer satisfaction in service sector, and oligopolistic market behaviour.

Measuring customer service is relatively difficult given the fact that service quality is not easily quantifiable. The difference between cost of service delivery and money as a commodity is not clearly differentiated and defined in the banking industry [ CITATION Nij13 p 87 l 1033 ].

Oligopolistic industry behaviour is a situation where a few industry players have significant share of influence and customers in a market.

  1. Make comments about how marketing theories/concepts were applied in this case.

CBA record profits may be criticised as a measure of consumer exploitation in terms of highly services in an industry with a few comparable alternatives. However, it might also be a result of cost-effective measures, increase in services uptake and growth in market share. CBA should demonstrate that it does not benefit unfairly from its dominant position in the market.

  1. Answer the question(s) at the end of the case study.

If I was a manager at CBA, I would demonstrate the consistency in fees charged over the years and the comparison with average industry prices to show the competitiveness of the bank’s rates. I would further recommend the commissioning of an independent market research to show the perception of consumers relating to service quality, cost and brand loyalty.

Question 6

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about subway customer’s complaint posted on the company’s Facebook account. The customer effectively demonstrated that subway served him a smaller sandwich than what it promises. The post attracted negative publicity for the company on social media.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

Subway is a fast-food restaurant chain that is operates more than 26,000 outlets globally through a franchise model.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

Social media and public relations are the main marketing concepts in this case study.

Social media marketing: Marketing involves efforts to popularize a brand and portray a favourable public image in the targeted market segment.

Public relations: these are activities that involve verbal and non-verbal communication focused on establishing and/or maintaining a favourable public image or opinion of a brand or business.

  1. Make comments about how marketing theories/concepts were applied in this case.

A customer posted a complaint on Subway’s Facebook account about being offered a smaller sandwich than what is usually the case for the amount paid. Within 48 hours the post had been shared and liked widely to the effect that subway had received extensive damage to its public image. Subway was able to acknowledge the mistake and did not take a defensive position that would have led to further damage to its reputation.

  1. Answer the question(s) at the end of the case study.

Social media is a highly effective media tool in boosting the public image of a brand or company through enhanced interaction with the target market. However, due to its interactive nature and widespread use and its efficiency in reaching users, social media poses a significant risk of negative publicity for brands and companies whenever instances such as unfulfilled promises to customers occur. Commercial advertisers can limit the damage by using a tactful approach that does not offend the media users in order to sustain a favourable public image [ CITATION Pan14 p 112 l 1033 ].

Question 7

Part A: Summary

  1. What is this case study about? Provide a summary.

The case study is about the decline in use and consequently sales of the personal computer (PC) in current global market. Currently, consumers increasingly prefer devices such as Tablets and Smartphones instead of the traditional PC.

  1. What is the brand/organization in the case study? What does it do? Research the brand.

There are no specific organisations covered in this case study. However, some of the leading players in the PC industry include Microsoft Corporation, Lenovo, Acer and Apple Inc.

Part B: Concepts and application

  1. What are the marketing concepts in this case? How are the concepts applied in the case?

Product lifecycle, product innovation and consumer preferences are the main marketing concepts in the case.

Product lifecycle: a product typically advances through introduction, growth, maturity, and decline. The PC is in maturity stage.

Product innovation involves efforts meant to improve user experience or add value to a product or brand.

Consumer preference relates to the implication of a consumer liking or wanting one product or its attributes more than the other.

  1. Make comments about how marketing theories/concepts were applied in this case.

Industry players and analysts seem to be readjusting their strategic plans to adapt to a market trend whereby consumers seem to prefer tablets and smartphones over the traditional PC. However, it is clear that consumers still use PC alongside the new devices. This has led to strategic product innovation considerations that will accommodate the consumer needs PCs and the emerging devices.

  1. Answer the question(s) at the end of the case study.

The PC is designed to process complex tasks but is cumbersome to most consumers who prefer an easy-to-carry and use device. The tablet is lighter, convenient-to-use, but incapable of heavy processing.

PC manufacturers should focus on offering the market a hybrid product that they can use for heavy processing but detachable from a docking station to allow for convenience in using and mobility.

The growth of digital technology, Microprocessors, Internet and software development has led to increased demand for devices that help users benefit from such technology. Tablets and smartphones are the convenient link between such technological advancement and consumers in terms of ease-of-use and convenience. The PC should remain a working tool for heavy processing. With such attributes, the PC will still have a sizable market that is separate from that of tablets and smartphones.

Works Cited

Lovelock, Christopher, Paul Patterson and Jochen Wirtz. Services Marketing. 6. Pearson Education Australia, 2015. 2016.

Nijssen, Edwin J and Ruud T Frambach. Creating Customer Value Through Strategic Marketing Planning: A Management Approach. Springer Science & Business Media, 2013.

Pang, A, N B Hassan and C A Chong. «Negotiating crisis in the social media environment: Evolution of crises online, gaining credibility offline.» Corporate Communications: An International Journal 19.1 (2014): 96-118.

Richter, Tobias. International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-Markets. Logos Verlag Berlin GmbH, 2012.

Schindler, Robert. Pricing Strategies: A Marketing Approach. SAGE Publications, 2011.