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Case Analysis: Pegasus Airlines: Porsche: John Lewis: Tesco Add in library

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Questions:

Case 1: Pegasus Airlines

• Examples of the needs, wants and demands that Pegasus customers demonstrate and implication of each for Pegasus’ practices
• Description of all the facets of Pegasus’ Product
• Five marketing management concepts best applies to Pegasus
• Value Pegasus creates for its customers
• Pegasus likely to continue being in building customer relationship

Case 2: Porsche

• Analysis of the buyer decision process of a traditional Porsche customer
• Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or a Panamera customer
• Explanation regarding selling of so many lower-priced models in the 1970s and 1980s
• Explanations regarding both positive and negative attitudes towards a brand like Porsche develop. Way of changing consumer attitudes toward brad by the Porsche
• Role Plays by the Porsche brand in the self concept of its buyer

Case 3: John Lewis

• John Lewis brand means to consumers. Strength and weakness as the company moves forward in tough economic condition
• Actually selling by John Lewis
• Recommendation for the future of John Lewis Partnership
• The elements of successful service model like John Lewis really can be transferred to public services
• Hospitals can be like a John Lewis Shop and the barriers of it

Case 4: Tesco

• The Big Price Drop, deviate from Cohen’s original motto pile them high and sell them cheap
• Pricing to segment the food market and position of Tesco
• Reason of willing to pay different prices for the same category of food by the customers
• Importance of Tesco’s Clubcard to assist the managers in developing pricing strategies
• Tesco will move away from price deals and focus on the quality and focus on the quality and range of its products in future
 
 

Answers:

Case 1: Pegasus Airlines

Examples of the needs, wants and demands that Pegasus customers demonstrate and implication of each for Pegasus’ practices:

Needs

Need is the basic thing which are required from a goods or service. The need of the customer of Pegasus is to reach the destination on-time and cost of flight should low that means it should be according to their affordable cost (Kotler and Keller, 2009). Further, it is also the fact that being a service providing organization, Pegasus Airlines always required being prioritizes the needs of the customer first. This indicates that they have to enhance their service quality so that it fulfilled the needs of the customer.

Wants

Along with needs, passengers want a safe journey. The cost should be low which can be easily affordable by them and services and facilities should be well such as no delays in service, good food and good hospitality, etc (Pride and Ferrell, 2010). While, needs come first, Pegasus Airlines also have to understand what exactly its customer wants. Based on their desire, they have to design the service in its all route.

Demands

Customer expects refund for delays of flight service and other facilities such as parking, discounts on foods, hotel partners, etc (Kerin, Hartley and Rudelius, 2011).

The Pegasus always gives focus on the need, want and demand of the customer and they try to serve to its customer effectively as they can. Company knows that demand of the customer is changing time to time and they try to adopt it according to the changes happening. They are always busy to develop new way for serving to its customers according to their requirements but they do not sacrifice their profits. They put the customer in such position that they can feel that they can gain extra benefit from the company.

Description of all the facets of Pegasus’ Product:

Customers can save money if they book the flight before 60 days of travelling. If customers book the flight later, they have to pay maximum fare offered by other companies. Email or SMS services are used to provide information regarding the ticket to its customer. Credit Loyalty cards are provided through which customer can get reduction in the rate of insurance.

Pegasus also provides various services and facilities such as seventy two hours of parking facility, lounges (VIP and Business), and discount facilities from different hotel partners. There are also various refreshment facilities and catering facilities offered with minimum extra charges and passengers of international flight can get ten percent discount if they order the meals with two days’ advance.

The reason is behind of providing such products and services that the company can get more loyal customer in the future.

 

Five marketing management concepts best applies to Pegasus:

Five marketing concepts are described below:

Production Concept

Production concept is one of the old concepts of business. According to this concept, customer looks for wider availability of product in the market in reasonable price. Managers give focus on production of high volume with low and large distribution of product (Pride and Ferrell, 2012). Under such circumstances, Pegasus Airlines needs to emphasize on its services so that it can provide diversified options towards its customer.

Product Concept

According to this concept customers expect good quality of products and services with innovative features. Managers give focus on creating best quality products and services and taking step for periodical improvement (Tracy, 2014).

Selling Concept

Selling concept refers to the maximum selling of products and services to the customers. If the company does not take any step, the adequate amount of selling will not possible. Generally, customers show unwillingness to buy the product. Company should take some promotional activities to increase the sales. According to the selling concept, the company engages in selling the produced goods rather than producing the products as per demand of market (Kerin, Hartley and Rudelius, 2013).

Marketing Concept

Marketing concept is very wider concept in the business. This concept is mainly focus on customer needs and satisfaction of that demand (Kotler and Keller, 2009). It creates more values in the product and services for its targeted customers and to achieve the organizational goal. As the industry as a whole experiencing stiffer competition, Pegasus Airlines needs to incorporate innovative marketing concept so that its service become catchy towards the customer. Therefore, it requires strong promotional as well as advertising campaign (Kerin, Hartley and Rudelius, 2013).

Societal Marketing Concept

Societal marketing concept describes the activities of the organization to identify the requirements and preferences of the customers and to provide the products and services in such effective and efficient way which fulfill the demand of the customers more in respect of other organization. It gives more focus on maintaining the interest and social well being of customers and for entire society.

The best concept is applicable for Pegasus Airlines is societal marketing concept. The company gives focus on that kind of business operation which can fulfill the expectations and preferences of passengers.

It can be said that Pegasus Airlines provides customized products and services which have also several welfare benefits for its customers (Kotler and Keller, 2009).

Value Pegasus creates for its customers:

Values Pegasus creates for its customer by following five things:

Integrity

Integrity of products and wider services of Pegasus Airlines helps to create value to its customers.

Quality

Qualities of services of Pegasus Airlines are very good and the flight cost is also low. Various amenities are provided to its customer. Company provides flight service on time. As well as, it refunds the amount for delays. If it delays for more than three hours, full ticket price is refunded and if it delays more than five hours, full ticket price is refunded along with a free ticket. The foods are provides in plane are of good quality (Kotler and Keller, 2009).

Delivery

The company employs creative communication with its customer. Electronic system is used to provide the information regarding the ticket through e-mail and SMS.

Safety

Pegasus ensures successful service through safety. Employees are trained well for increasing the safety performance.

Pegasus likely to continue being in building customer relationship:

Yes, Pegasus is likely to continue being success in building customer relationships. Pegasus is mainly focused on the customer expectation and priorities. All the services are customer oriented and it can be seen that company successfully satisfies the customer. Customers’ needs, expectation and requirements are changing time to time. Pegasus also gives importance on that. It tries to create a sustainable relationship with its while leveraging the possibilities of social network and other digital technologies (Kotler and Keller, 2009). Also, there is a special website named as ‘Pegasus Listens to You’. This website is made to encourage the customers for generating ideas for the improvement of service and to encourage the customers to report problems which they have encountered. Effective management techniques are used and high quality services are provided with low prices. 

 

Case 2: Porsche

Analysis of the buyer decision process of a traditional Porsche customer:

There are five stages in buying decision process which are shown through following diagram:

Alternative Evaluation

Post-purchase Behaviour

Information Search

Purchase Decision

Need Recognition

(Kerin, Hartley and Rudelius, 2013)

Porsche is a reputed company and it is well known to customers. In case of difficult situation of purchase, customer can follow all the five stages such as purchasing of durable goods of new brand. Here, Porsche is a unique company for producing card for a small and distinctive segment of automobile buyers. The company follows niche branding strategy. Therefore customer can ignore the first three stages of buying process and can give importance on 4th and 5th stages i.e. Purchase Decision and Post-purchase decision.

Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or a Panamera customer:

The two models are fully different from each other and from normal model of Porsche. Cayenne is a sport looking car and the size is medium. It has five seats and five doors. Panamera is larger than Cayenne and it falls under luxury category. It has five doors fastback. So, the above differences between those cars influence the buying decision process of customer. Here, first stages of buying process i.e. need recognition is required for both customer groups of Cayenne and Panamera (Kotler and Keller, 2009). Traditional customers of Porsche may ignore the second stage i.e. information search because the information regarding the cars of Porsche is already known to them. But the buyers of Cayenne and Panamera can go for information search because they are looking for new models which have different features. Then, third stage i.e. alternative evaluation can be ignored by both groups of customer because Porsche is a unique for small and distinctive segment of automobile and it has always been a niche brand. At the end, the last two stages (purchase decision and post-purchase behavior) have same importance for both customers of Cayenne and Panamera (Kerin, Hartley and Rudelius, 2013).

Explanation regarding selling of so many lower-priced models in the 1970s and 1980s:

Porsche had made differentiation in the cars and buying decision process had also become different for such new cars. As for example, in the early 1970s, Porsche launched the 914 model, a square-ish, mid engine and which was two seated car and was more cheaper than 914. So, different class of customers could afford a Porsche card and 914 was the top selling model. By the late 1970s, Porsche replaced and introduced a hatch back couple. It was something which had not found any other regular model of Porsche. The engine had in the front. At the time of 1970s and 1980, Porsche had introduced so many models of cars which were so cheap and affordable for the customer (Kerin, Hartley and Rudelius, 2013).

 The adoption process describes the reason of high selling of lower-priced model in the 1970s and 1980s. Adoption process is a psychological process. It is the process of passing from innovation to final acceptance after first hearing. In this process, customers first get aware about the new models of car where adequate information is not known to them regarding the new models. Then, they try to find out the new features of new models. Next, assumption is made by the customers whether it is worth for trial the new cars. In the fourth stage, they go for trial of new models of cars. Finally, if customer satisfies with the cars, they go for purchasing of the car. The cars of Porsche were available at cheap price and cars were made according to the customer requirement. So, in the 1970s and 1980s, the selling of cars was so high (Kotler and Keller, 2009).

Explanations regarding both positive and negative attitudes towards a brand like Porsche develop. Way of changing consumer attitudes toward brad by the Porsche:

Segmentation of market of Porsche is well. Company has distinctive segment in the automobile market. It separates the social status of lower level and upper level for upper class. The company tries to make its own unique identity by making maximum satisfaction to the customer. The views of affordable customer of Porsche are positive. These are positive attitudes.

It is very difficult to identify that whether the company follows niche marketing strategy or not. The price of the cars is also high. Only some class of people can afford for the cars of Porsche. These are negative attitudes.

The company tries to make balance by increasing its brand image in the market. It is known that the company is exclusive in the brand throughout the world (Kerin, Hartley and Rudelius, 2013).

Role Plays by the Porsche brand in the self concept of its buyer:

If the whole automobile customers are categorized into two classes: upper class and lower class. The social status and level of income of upper class are higher than the lower class (Kotler and Keller, 2009). Porsche makes cars for the upper class people. The cars are produced by Porsche are very exclusive. So, only higher class people can afford for the cars. If the company produces cars for all class of people, the brand for high level of social status may destroy. Porsche deals with a small segment of market where people can afford for their cars and price is so high for its good quality. So, Porsche engages in creating a unique identity and a brand of exclusivity avoiding the arguments of others.  Therefore, the company put the buyer in own exclusive class.

 

Case 3: John Lewis

John Lewis brand means to consumers. Strength and weakness as the company moves forward in tough economic condition:

John Lewis provides excellent service and satisfaction to the customers. They try to manage in holding the customer’s trust. John Lewis brand is as much popular that customers know that they always provide high quality of product with reasonable price and low quality of service at any time. Customers are also attracted by its long-held promise to be ‘never knowingly under-sold’ by rivals (Kotler and Keller, 2009).

The brand image of John Lewis is so high. It has strong relationship between employees and customers and it has also wide range of products. These are all strengths of John Lewis. In present market, the completion is too high. It has cut the prices of product to compete with others competitors. For this reason, the brand value may be destroyed. The older people are the target customers of John Lewis. The company should expand the customers (Kerin, Hartley and Rudelius, 2013).

Actually selling by John Lewis:

John Lewis actually is actually selling its brand. Though, the company offers good quality of products, it is actually reputed for excellent of customer service. Ticketing machines are set to manage the waiting of shoppers.

John Lewis is generally stores of electronics based product. But, now a day, it has wide range of products such home appliances, fashionable products for both and men and women, baby products, sports products, toys and gifts, etc (Kotler and Keller, 2009).

Recommendation for the future of John Lewis Partnership:

John should adopt effective marketing strategy specially the pricing strategy for products. The numbers of competitors is large and there is opportunity of new entrants. So, the company should improve its competitive advantage and managerial competency. Except from departmental stores, it should take effective strategy for online selling of products.

The elements of successful service model like John Lewis really can be transferred to public services:

Yes, the elements of service model of John Lewis can be transferred to public sector. The public sector is oriented to the benefits of customers (Kotler and Keller, 2009). Whereas, John Lewis is also customer oriented. According to the service model of John Lewis, the each employee of the company gets part-ownership and share of earned profits annually. So, the employees become more interest to engage in their work which leads to increase in productivity and profits of the company (Kerin, Hartley and Rudelius, 2013).

Hospitals can be like a John Lewis Shop and the barriers of it:

Yes, a Hospital can be run like John Lewis Stores. If a hospital can apply the management and control system like John Lewis Shop, it can provide better service to the patients and they will be more satisfied.

The pattern of hospital and John Lewis is different. John Lewis Shop is a product based store. But, the hospital is different from it. The employees of John Lewis Shop engage selling of its goods with good service and focus on profit maximization. But, a hospital does not like that.

 

Case 4: Tesco

The Big Price Drop, deviate from Cohen’s original motto pile them high and sell them cheap:

No, The Big Price Drop does not deviate from Cohen’s original motto of ‘pile them high and sell them cheap’. Tesco announced its biggest price-driven promotional campaign named as ‘The Big Price Drop’ (Kotler and Keller, 2009). Price-driven promotional campaign promised for cutting the price on over 3000 essential items. So, cost of customer’s shopping become cheaper.

Pricing to segment the food market and position of Tesco:

It offered the food items at low price than the other competitors’ offerings. The cost-plus pricing strategy is fruitful to compete in the market for Tesco. Another type of pricing is used Tesco i.e. Cost-based pricing. Cost-based pricing is set based on the costs of a product. Good-value pricing is also adopted by Tesco (Kotler and Keller, 2009).

Reason of willing to pay different prices for the same category of food by the customers:

The customers are willing to pay different prices for the same category of food because they think that some foods are extra special and there is quality difference between the goods. They think that the high price foods are more good quality than the low price food (Kerin, Hartley and Rudelius, 2013).

Importance of Tesco’s Clubcard to assist the managers in developing pricing strategies:

Tesco try to record the details of where, when, what and how much and what price consumer purchased the goods by using Clubcard. Customer gets rewards with money off coupon through Clubcard. So, through analyzing the recorded data, manager can develop the pricing strategies for the products (Kotler and Keller, 2009).

The major pricing strategies have Tesco demonstrated evidence of adopting since 1919:

Tesco has applied cutting prices to increase the number of customer. It always gives the product with cheaper rate than the other competitors of the market. The strategy is adopted by Tesco is Good-value pricing strategy. So, customer gets the product with cheaper rate than the other retilers.

Tesco will move away from price deals and focus on the quality and focus on the quality and range of its products in future:

Brand image of Tesco is increasing gradually and customers are becoming loyal to it due it good quality of product and services. It is becoming well known to its customers. The several promotional activities have already worked. So, the company now can engage to focus on the quality and range of its product (Kotler and Keller, 2009).

 

Reference List

Books:

Halpern, N. and Graham, A. (n.d.). Airport marketing.

Kerin, R., Hartley, S. and Rudelius, W. (2009). Marketing. Boston: McGraw-Hill/Irwin.

Kerin, R., Hartley, S. and Rudelius, W. (2011). Marketing. Boston: McGraw-Hill/Irwin.

Kerin, R., Hartley, S. and Rudelius, W. (2013). Marketing. New York, NY: McGraw-Hill/Irwin.

Kotler, P. and Keller, K. (2009). Marketing management. Upper Saddle River, N.J.: Pearson Prentice Hall.

Kotler, P. and Kotler, P. (2010). Marketing. Frenchs Forest, N.S.W.: Pearson Australia.

Pride, W. and Ferrell, O. (2010). Marketing. Australia: South Western Cengage Learning.

Pride, W. and Ferrell, O. (2012). Marketing 2012. Mason, Ohio: Cengage Learning.

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

Zou, S. and Fu, H. (2011). International marketing. Bingley: Emerald.

Journals:

Barnes, R. (2011). The great Tesco beauty gamble (the Tesco supermarket chainÂ’s marketing strategy for breaking into the UK beauty services market). Strategic Direction, 27(7).

Johansson, M., Hallberg, N., Hinterhuber, A., Zbaracki, M. and Liozu, S. (2012). Pricing strategies and pricing capabilities. Journal of Revenue and Pricing Management, 11(1), pp.4-11.

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