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Case Analysis: Customer Relationship Management Add in library

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Question:

Describe the following case studies?
 
Case Study 1: Pegasus Airlines

Case Study 2: Porsche

Case Study 3: John Lewis: Middle England’s retailer of choice

Case Study 4: Tesco: Every little help
 
 

Answer:

Case Study 1: Pegasus Airlines

Pegasus customers needs wants and demand

Need, want and demand of Pegasus airline customers are always changing or diversifying. To increase profit Share Company has to work as per needs, wants and demand of their customers. The main assets of an airline company are there customers’ i.e. loyal customers and other customers (Anderson and Kerr, 2002). The basic need of an airline customer is good customer relationship management, affordable fare and etc (Anderson and Kerr, 2002). The list of need, wants and demand of airline customers are as –

Needs:

  • Proper and updated system for mail and SMS of e ticketing should be used by Pegasus.

  • The seating arrangement in flight should be done taking into consideration customers physical appearance variations.

  • For physically disabled or challenged passengers special facility i.e. sitting arrangement or wheel chairs should always be on airport as well as in flight.

  • The emergency facility should be updated and proper in flight and airport area.

  • The medical or first aid should be present in flights and on airport premises.

Wants:

  • Good quality food and water should be available in flight and on airport.

  • Pegasus customers always want to be connected so that they can get updates regarding offers, discount, policies and practices changes, so company should always update their personal website as well as social networking sites and pages (Arif and Sadiq, 2012).

  • The frequency of flights and connection with every city should be there

  • Flight fare should be affordable by every customer.

  • Customers prefer company who uses updated techniques and practices so to improve their service Pegasus should try to focus on customer’s feedback.

Demands:

  • If flight is delayed or cancelled customers should be provided by secondary option as soon as possible (Chou, 2005).

  • In case of flight delay or cancel customers should be informed via SMS or email prior to scheduled flight time.

  • Pegasus should avoid getting their flight late or cancel.

  • Food available in flight and on the airport should be affordable regarding price and good in quality (Coursehero.com, 2015).

  • The customer service should be good at the airport premises also.

Needs, wants and demand implication in Pegasus Airline

The main focus of Pegasus airline is their customer and their needs and demand. Pegasus always focuses on their service as per customer’s requirement. Airline industry one of the major backbone are their customers so Pegasus always consider their customers feedback for making any change in their service policy or practices. For example their loyal customers demand was to install new technology which helps in SMS and emailing the details of e tickets to all the corresponding customers (Cunningham, 2002). So Company has taken is feedback in a positive way and started SMS and e mailing facility of e ticketing and in case of cancellation and delay of flights they also sent SMS and E mails to customers (Dalrymple and Parsons, 2000). Low fare of tickets is also one of the customer’s feedbacks which Pegasus considered.

Pegasus Airline products facets

Different aspects of Pegasus airline products are –

  • In airline industry Pegasus was first to launch low cost airline in Turkey.

  • Pegasus gives their loyal customers a credit or loyalty card which helps customers to book tickets on low price in comparison of other customers.

  • By the help of different events they advertise and sometimes give chance to win free ticket to any particular destination.

  • Customers feedback is valuable to Pegasus airlines

  • If customers are not traveling then also they can be in touch with the company by Pegasus official website, social networking sites, pages and blogs.

  • They provide discount on tickets to the customers booking their ticket 60 days before their journey in comparison of late booking customers (Dunkel and Kleemann, 2013).

  • Customer booking e tickets are provided with all details via SMS and e mail facility which helps in saving trees as customers are allowed inside the airport by showing that SMS only which saves the paper.

  • Customers are provided with an option of VIP Valet parking, business lounge, and car or radio cab.

  • Refreshment and catering facility is also available on airport at inside the flight on discount price to all customers.

  • Pegasus gives an option of travelling insurance while e ticket booking to all customers in a low rate.
 

5 marketing management concept used by Pegasus Airlines

Marketing management concepts used by Pegasus Airlines are as –

  • Pegasus ensures they will provide a successful and safe airline service.

  • They provide flights to all international airports and cities.

  • Pegasus try to provide good customer service at airport and in flight while journey.

  • Pegasus provides air tickets in low prices to all the customers who book tickets prior to 60 days (Engel, 2000).

  • They provide credit or loyalty card to their loyal customers for extra discount on their booking.

The 5 marketing concept used by Pegasus are as –

  • Production Concept – Pegasus thinks that if their airline services are available at cheap rate for every destination then there will be increment in profit share. This concept is based on the customers’ details which are available in the market.
  • Product Concept - According to product concept of Pegasus if the services delivered to their customers are of good quality and as per their expectation, company will earn profit easily and more customers will be attracted towards their service. Customers focus on those services which fulfill their needs and demands.
  • Selling Concept - Pegasus thinks that the customers should always be aware of service updates and changes that is why Pegasus always keep their social networking sites , official websites and blogs updated.
  • Marketing concept - Pegasus works as per their customer’s wants and needs. So to make their customers’ aware about services and other facilities marketing is used. This concept helps Pegasus in focusing on their target customers.
  • Societal marketing concept - Under this concept Pegasus consider their society and welfare of society. For example the airline service provided do not harm society i.e. company uses cheap rate fuel which can harm environment. This concept helps Pegasus fulfill their customers’ requirement without harming their society and surroundings.

Company’s value regarding their customers

Airline industry main focus is always on their customers’ needs, wants and demand. To increase their profit Share Company always has to consider their customers changing demand. To always be in connection with their customers Pegasus update their social networking sites, pages and blogs and their official websites. The main assets of airline industry are their customers whether there are regular customers or new customers (Gelder and Woodcock, 2003). To attract more customers company organize public events and give winners free tickets to any destination. Pegasus adapted different marketing and advertisement strategies for attracting more customers and increase their profit rate (Hill, 2013). Pegasus always focuses on their customer feedbacks and improving their service as per their feedback.

 

Pegasus customer relationship

Pegasus try to maintain customer relation while journey and on airport. Customers’ feedbacks are always important for Pegasus. Backbone of any airline industry is their customer and their changing demand, needs (Kavadas, 2004). While making any change or improvement in their practices or services Pegasus main focus is their customers and their employees. On customer demand company started providing low fare tickets which was affordable by every passenger. There are many other services which were started taking into consideration customer’s feedback. Airline industry to increase their profit rate should focus on maintaining a proper customer relation with all the customers whether they are new customer or loyal customer.

Case Study 2: Porsche

Traditional buyer decision process of Porsche

Porsche is a worldwide known German automobile manufacturer so the buyer of Porsche will not go through the initial three steps of decision process as their need is clear to them and they cannot need to find any alternative (Kotler and Armstrong, 2012). Porsche buyers are clear whether they want to buy a high performance sports car or super cars or a hyper cars or any SUV or sedan model. Porsche buyer decision focuses on two factors i.e.

Purchase decision – Purchase decision emphasis on the intension of buyer or the reason by he/she decides to buy Porsche model. By knowing the intension of buying company will try to give customer model as per their requirements.

Post purchase Behavior – Post purchase behavior of a Porsche customer shows whether they are satisfied by the model or not (Memorystore.org.uk, 2015). After purchasing model the service provided by the company is helpful to the customer or not is also very important.


Figure1: Buyer decision process

Difference between traditional Porsche buyer decision process and buyer decision process of Cayenne or Panamera

The major difference in Porsche buyer decision and buyer decision of Cayenne or Panamera are as-

Cayenne car model are middle sized with five seats and doors. On the other hand, Panamera model are luxury full size model with five doors. The buyer of Cayenne or Panamera while making decision have to undergo all the steps of buyer decision process i.e. need recognition, information search, evaluation of alternative, purchase and post purchase (Peelen, 2005). But the buyer of Porsche will directly focus on their intension of buying and post purchase behavior. Porsche is worldwide famous automobile company in comparison of Cayenne and Panamera. Buyers of Cayenne or Panamera have to gather information about the different model so that they can decide which one to buy but on the other hand Porsche knows all his customers requirement and delivery them model as per that only (Moffitt and Campbell, 2011). Porsche manufactures expensive automobiles in comparison of Cayenne and Panamera so the customers are in limited range (prezi.com, 2015). Cayenne or Panamera customers focus on family car and speed of car but Porsche customer look for sound, vibrations and feel of the car.

Cause of low price selling model of Porsche in 1970s and 1980s

In 1970s Porsche analyzed that they do not manufacture nay model which can be afforded by other class. So they launched a new model Porsche 914 which was different from other model are cheaper in price. Company found that the 914 model sales was more than in comparison of their model so they decided to change their strategy and used adoption model for increasing their sales (Pride and Ferrell, n.d.). They started manufacturing models of cheap rates and which are comfortable for other classes also. Porsche started making their customers aware of new models by which they can easily decide to buy (Arif and Sadiq, 2012). Porsche decided to manufacture model taking into consideration other class people also. In 1970s Porsche found that there product requires modernization which attracts customer’s other than their target customer, managers worry point was whether the modernization will increase profit or decrease their profit. The main reason for low selling in 1970s and 1980s of Porsche was company started focusing on individual customers rather than limited customers. 

Porsche customer’s attitude and behavioral towards the brand

Porsche customer’s positive attitude and behavioral changes are –

  • Porsche customers buy cars to separate them from lower class and increase their status level.

  • Customer prefers Porsche to enjoy the upper social class status

  • By making changes as per the customer requirement can change their attitude towards brand (Cunningham, 2002).

Negative attitude of customer towards brand are –

  • The product image of Porsche dissatisfies their customers.

  • When brand is unable to show exclusivity in their product customers show negative attitude towards brand.

Customers’ attitude can be changed by improving the performance as per customers and increasing their product image (Raab, 2010). Porsche should focus on their customers’ feedback and changing requirement of automobiles.

Porsche customer’s self concept

Porsche developed brand self concept by

  • Manufacturing unique and luxurious automobiles model.

  • Porsche should concentrate on the look or appearance of the product rather than performance.

  • Company should focus on designing models which help in strengthening the success feeling and replicate customers self esteem and status (Shonka and Kosch, 2002).

  • By manufacturing model which are affordable by both classes of people.

  • Porsche should focus on their uniqueness and exclusivity in their models.
 

Case Study 3: John Lewis: Middle England’s retailer of choice

John Lewis customers view for the brand

John Lewis is a retail departmental store of Great Britain with many other branches. Different products are sold by John Lewis Departmental store like electrical and home appliances, products for women, men and child and etc (Smith, 2012). John Lewis always tried to delivery good quality product to their customer. They work on increasing profit rate without comprising quality of the product. John Lewis customers say that the product price is affordable by everyone and the quality of every product is good. John Lewis is a retail company so they sell products of different companies under one shelter so all the class customers are considered by them. Products are available in john Lewis for every class whether it is upper or middle (Thompson, 2010). John Lewis for improving their service always takes their customers feedback and work according to that (Dunkel and Kleemann, 2013). John Lewis outlets are available at airport which attracts customers who are new in the city or tourist.

John Lewis actual selling products

John Lewis is a retail departmental store chain , the products available are of different companies as per market requirement and customers demand (Tracy, 2014). The product lists of John Lewis are as –

  • Electrical appliances of different company

  • Home appliance i.e. kitchen or gardening appliance

  • Clothes for men, women and child

  • Toys for all age children

  • Sports equipment

  • Beauty product for men, women

  • Food products and etc.

All these options are available on online shopping also (Usui, 2008). Online shopping helps John Lewis customers in saving their time, energy and etc.

According to the case study actual product of john Lewis means adding extra feature or elements to the product by which customers are attracted. For example the mobile device which a customer is using presently if John Lewis add new feature according to customers requirement then customers will be attracted towards the new innovated mobile device. The augmented product of John Lewis for example when company sells any mobile device they give additional three years of warranty which influence customer’s to purchase the product.

John Lewis brand loyal customers 

Loyal customer of John Lewis prefers shopping from this brand and suggests other to shop from same. John Lewis always tries to work according to their loyal customers as well other customers. As mentioned in case study Julia kuttner a loyal customer who is a journalist of east London always prefers John Lewis for shopping (Valls, 2013). John Lewis consider their customers feedback for service and product whether customer is loyal or new to company. To increase the number of loyal customers John Lewis focus on their quality of product delivered and customers service rather than increasing profit rate (Winer, 2000). Loyal customers’ sometime helps in increasing number of customers as they influence other people to do shopping from John Lewis.

Recommendation to managers of John Lewis for managing partnership in future

Partnership is the biggest factor which has to be managed by John Lewis to run their business profitably and properly. John Lewis partners are Waitrose, Greenbee and etc (Gelder and Woodcock, 2003). The main purpose of partnership in John Lewis is to satisfy all its employees, customers and business profit.


Figure2: Process of managing partnership in John Lewis

To manage partnership John Lewis should take following step-

  • John Lewis should build strong business relationship with their partners as per their principles.

  • John Lewis should focus on their business environment i.e. business environment should influence their employees perform better.

  • John Lewis should before starting any new business partnership should distribute properly their responsibilities and task (Xie, 2011).

  • Every partner should perform business with John Lewis as per their business principles.

The successful service model which may transfer John Lewis to public service –

The service model which transfer John Lewis to public service sector for example when staff of John Lewis guided British Police officers about the process of dealing with the witness and suffers of any crime, it helped store to represent a new way of entrepreneurship in politics.

Hospital can be like John Lewis shop and its barriers are

No hospital can be like John Lewis shop as the experts of both places are different in qualification and profession. For decision making process highly professionals are called upon. The first barrier is the people feels empowered while using their perception, information and judgments quality for working in a highly disciplined team or group of the company. And the other barrier is their highly professional which are called for decision making procedure.

 

Case Study 4: Tesco: Every little help

Strategies adopted by Tesco

Different strategies adopted by Tesco are marketing strategy, advertising strategy, promotional strategy and etc. All these strategies have their own working style and objective. Marketing strategy helps Tesco in establishing their new product in new market or old product in new market (Kavadas, 2004). Advertising strategies helps in advertising their products in different markets. Some of the advertisement strategies are hoarding advertising, television, internet advertisement and etc. Marketing by Tesco is done on the basis of demography, customer’s demand and need and etc. Tesco mostly adopt internet facility for advertising, promotion (Tracy, 2014). Promotional strategy is used by Tesco to promote or advertise their products and services. Promotional strategy used by Tesco is also one of the advertising methods of their products.

Segmentation, positioning and pricing strategy of Tesco in food market

The pricing strategies adopted by Tesco in food market are competitor based pricing strategy, customer based pricing strategy and cost based pricing strategy. Competitor based pricing is done by taking into consideration the competitors of Tesco in food market. Pricing of food product is decided after analyzing the current price of same food product (Memorystore.org.uk, 2015). Customer based pricing is used by Tesco after analyzing the ability of customers for paying. Tesco has to decide its entire food product price after analyzing competitors price as well as customer ability for paying (Thompson, 2010). Segmentation is done to analyze Tesco customers under different factors which can change their demand of food product like age, gender, financial ability and etc.

Every customer depending on their age, gender, financial ability has their own choice for product for example teenager choice of product is different from a man of 60+ age. So Tesco has to work by taking all group customers together (Shonka and Kosch, 2002). The factors which affect their product buying ability is

  • Quality of product

  • Brand Image

  • Requirement of individual customer

  • Product rate

  • Other option available in market for same product

  • Offer if available on that product.

Different pricing products of Tesco and the pricing strategy adopted by Tesco

Different pricing strategies adopted by Tesco are –

  • Competitor based pricing method

  • Customer based pricing method

  • Cost based pricing method

Tesco uses mainly competitor based pricing and customer based pricing. Both pricing method can be used in one market at a time without affecting their brand image

Customer pricing method – This pricing method is used by Tesco to make their product available for maximum customer i.e. the price of the product is decided after examining the capacity of customers, their financial status (Pride and Ferrell, n.d.). Suppose Tesco decide to launch packed food item in London market so before deciding the price of the packed food item Tesco will analyze the ability of regular customer of that particular market. The price will be decided so that maximum number of customers buys their packed food item.

Competitor pricing method – Tesco use this method of pricing to increase their profit in comparison of competitors in market. Suppose Tesco decide to launch their old product in new market then the first step of Tesco will be to examine the present competitors of Tesco regarding that particular product in new market (prezi.com, 2015). After analyzing their price for that same product Tesco will fix such prices which increase their profit rate and sales value.

Future Promotional strategy of Tesco

The future promotional strategies which Tesco will adopt are as-

  • Tesco will try to focus more on their customer’s requirement and demand which always changes.

  • Tesco will improve their product and other services by considering their feedback.

  • Company will increase the level of trust and transparency regarding their product, delivery service and other services.

  • Tesco will update their strategies and technology as per the market requirement so that their customers are satisfied by their quality of work (Peelen, 2005).

  • Company will work more on their customer relationship management to delivery them good quality service.
 

References

Anderson, K. and Kerr, C. (2002). Customer relationship management. New York: McGraw-Hill.

Arif, A. and Sadiq, M. (2012). Effect of Television Advertisements on Buyer's Decision Process. Saarbrücken: LAP LAMBERT Academic Publishing.

Chou, Y. (2005). Critical factors of the buyer decision process model in business-to-customer (B2C) e-commerce in Taiwan.

Coursehero.com, (2015). Read the Company Case - Porsche: Guarding the Old While... | Course Hero. [online] Available at: https://www.coursehero.com/tutors-problems/Business/7452862-Read-the-Company-Case-Porsche-Guarding-the-Old-While-Bringing-in-th/ [Accessed 4 Mar. 2015].

Cunningham, M. (2002). Customer relationship management. Oxford, England: Capstone Pub.

Dalrymple, D. and Parsons, L. (2000). Basic marketing management. New York: Wiley.

Dunkel, W. and Kleemann, F. (2013). Customers at work. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.

Engel, J. (2000). Promotional strategy. Cincinnati, Ohio: Pinnaflex Educational Resources.

Gelder, D. and Woodcock, P. (2003). Marketing and promotional strategy. Cheltenham: Nelson Thornes.

Hill, P. (2013). Pricing for Profit. Kogan Page.

Kavadas, C. (2004). The effects of risk disclosure and ad involvement on consumers' recall, behavioral intentions, attitude towards the ad and brand in DTC advertisements. Ottawa: National Library of Canada = BibliotheÌ€que nationale du Canada.

Kotler, P. and Armstrong, G. (2012). Principles of marketing. Boston: Pearson Prentice Hall.

Memorystore.org.uk, (2015). John Lewis - What Partners say about power. [online] Available at: https://www.memorystore.org.uk/people/today.html [Accessed 4 Mar. 2015].

Moffitt, K. and Campbell, D. (2011). The 1980s. Lanham, Md.: Lexington Books.

Peelen, E. (2005). Customer relationship management. Harlow, England: FT Prentice Hall.

prezi.com, (2015). Porsche Case: Guarding the Old, While Bringing in the New. [online] Available at: https://prezi.com/fgfp_gubvfyw/porsche-case-guarding-the-old-while-bringing-in-the-new/ [Accessed 4 Mar. 2015].

Pride, W. and Ferrell, O. (n.d.). Foundations of marketing.

Raab, G. (2010). The psychology of marketing. Farnham: Gower.

Shonka, M. and Kosch, D. (2002). Beyond selling value. Chicago: Dearborn Trade Pub.

Smith, T. (2012). Pricing strategy. Mason, Oh: South-Western Cengage Learning.

Thompson, G. (2010). What is supply and demand?. New York: Crabtree Pub.

Tracy, B. (2014). Marketing. New York: AMACOM.

Usui, K. (2008). The development of marketing management. Aldershot, England: Ashgate.

Valls, J. (2013). Beyond the low cost business. New York: Palgrave Macmillan.

Winer, R. (2000). Marketing management. Upper Saddle River, N.J.: Prentice Hall.

Xie, L. (2011). Examining structural relationships among cognitive destination image, destination personality and behavioural intentions. Hong Kong: School of Hotel and Tourism Management, The Hong Kong Polytechnic University.

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