MKT5000 Marketing Management

Answer

Case study: 3 (Home depot)

Case summary

Home Depot is targeting specific target customer segments including the women and small contractors. In doing so, they are observing the practical usage of the customers to gather data. This helped them to identify the issue of the women customers in using bucket. Accordingly, new bucket design is initiated and developed. Different facilities are also being introduced for the small contractors that will further help them in retaining the existing customers.

Key marketing issues

• Primary data collection: gathering data directly from the primary sources. Home Depot observed the usage of the customers and identified their issues.
• Concentrated targeting strategy: it refers to process of targeting a particular customer segments. Home Depot targeted the women and small contractors as target customers.
• Demographic segmentation: it refers to the process of segmenting the customers on the basis of population variables. Home Depot segmented on the basis of gender by targeting the women customers.

Personal case analysis

I learned that Home Depot initiated the strategy of primary data collection to identify the need of the customers and design products accordingly. They have targeted women customers with distinctive women oriented products and used customer variables in segmenting.

Case questions

1. The designer at Home Depot formulated the alternate hypothesis that customers may be facing issues with the traditional bucket designs and the main objective is to overcome this issue if it is relevant (Homedepot.com, 2018). Observing the target customers was the most ideal method for the designers in collecting data due to the reason that other data collection methods such as interviewing customers would not have collected reliable information (Dabholkar, 2015).
2. From the given case study, it is identified that Home Deport is using concentrated targeting strategy. This is due to the fact that Home Depot is targeting only the Do It Yourselfers for their products. It is also being reported that Home Depot is also targeting the construction professionals for building materials. Thus, targeting a specific customer segment and introducing products accordingly can be termed as concentrated targeting strategy (Anderl, Schumann & Kunz, 2016).
3. The segmentation variables initiated by Home Deport are demographic and behavioral segmentation. This is due to the reason that it is stated in the case study that women customers are specifically targeted that can be considered as demographic segmentation and age based segmentation. On the other hand, in terms of behavioral segmentation, customers with having the need for domestic tools for doing by themselves are being targeted. These customers are having the need for domestic and portable tools for domestic projects (Sandy, Gosling & Durant, 2013).
4. Home Depot is using both the business and customer variables in segmenting the contractor market due to the reason that small contractors are being targeted over others for their larger portion of business revenue with Home Depot. On the other hand, customers variables such as buying pattern and requirement of the contractors are also being considered in segmenting and in accordance to that, Home Depot have designed the pickup and delivery services (Sandy, Gosling & Durant, 2013). In addition, the online services for contractors are also being initiated based on the expectation and requirement of the customers, which are customer variables. Thus, it can be concluded that Home Depot initiated both the business and customer variables in segmenting the contractor market.

Conclusion

It is concluded that Home Depot succeeded in the market by initiating the strategy of behavioral and demographic segmentation. They have segmented the women customers and small contractors in terms of customer variables. It is helping them to meet the customer demand and requirement effectively and cementing their market position.

Case study: 4 (NFL)

Case summary

Nfl is one of the most popular sports in the United States and now they are targeting the global markets. However, there are number of barriers that are restricting Nfl from expanding globally. Nfl should change some of the characteristics of the game to have more global approach. There are number of internal and external challenges being faced by Nfl in expanding globally.

Key marketing issues

• Global expansion: it refers to the strategy of going beyond the existing market and tapping the foreign markets. Nfl is trying to gain market share in foreign countries as well.
• Social influences: it refers to the social and cultural factors that are having influences on the buying decision of the customers. Nfl is facing the negative social influences in some countries regarding their product.
• Service customization: it denotes the process of providing services in accordance to specifications of the particular target market.

Personal case analysis

I learned that cultural differences can have challenges for the organizations in global expansion. In addition, it is important for the organizations to customize their services to adapt to different social factors. I have also learned the factors, which are posing challenges for nfl in global expansion.

Case questions

1. Nfl is having easier time in expanding in the United Kingdom and Canada over Germany and China due to the reason that United Kingdom and Canada are having cultural similarities with the United States (Nfl.com, 2018). In addition, Canada is the neighboring country of the United States and also denotes that the cultural aspects of these two countries will be similar to some extent. In addition, it is also stated that nfl is having popularity in the Australian region also. Thus, other than the cultural factors, another major reason for gaining of popularity of nfl in the market of United Kingdom and Canada is popularity of rugby (Nahata, Hazarika & Tandon, 2014). Some countries are having the preferences for more indoor games or games with less probability of physicality (Bosch et al., 2014). However, in the case of nfl, physicality is more compared to some other countries that is causing barrier in their global expansion. Another major barrier is the requirement of physical attribute of the players. This is due to the reason that in the American football culture, players are having larger physics and strong built. However, these physical characteristics of the players are not being gained in some other countries due to genetic differences.
2. Nfl should not customized the game from the core due to the reason that it will affect their popularity in their existing markets and will also change the approach of the game. However, it is recommended that augmented features such infrastructural needs and certain physicality can be altered to get adhered with more global approach (Grimshaw & Burwell, 2014). If the augmented regulations can be tweaked according to the global needs without harming the core part of the game, then nfl has the potentiality in expanding worldwide.

Conclusion

It is concluded that one of the major barriers for nfl in their global expansion is the differences in cultures in different countries. It is identified that players mainly from the Asian regions will not be able to play with the American players in terms of physicality and this is reducing the gaining of popularity among the people.

Case study: 5 (American Express)

Case summary

American express is meeting the five dimensions of service evaluation in order to have greater customer satisfaction. They also follow heterogeneity to cater to different needs of different customers. This is helping American express in becoming the leading global company in the world.

Key marketing issues

• Service evaluation: this refers to the steps to be followed by service providers in meeting the different criterions of the customers. American express meets all these steps.
• Heterogeneity: this refers to the diversity of the services in catering to different requirements of the customers. American express are having heterogeneous services to deal with different customers.
• Ethical practices: organizations follow ethical practices to maintain the honesty in the service delivery

Personal case analysis

I learned that American Express is having different processes and practices in dealing with global customers with different requirements. I have also learned about the heterogeneous services can be used in dealing with customer diversity.

Case questions

1. The first dimension of service quality is tangible that refers to the physical attributes of the service to be gained by the customers. In the case of American Express, credit cards are being provided to the customers with unique identification code (americanexpress.com, 2018). This serves the basic tangibility for the customers. In addition, it is reported that American Express is having luxury lounges in different airports around the world for their frequent flyer customers (Terblanche, 2015). This also serves as the physical facilities for the customers in gaining the tangible attributes from the service. The next dimension is reliability that refers to the extent to which services is delivered in most accurate way. In terms of responsiveness, American Express is having twitter, facebook and instagram account for direct communication with the customers. The next dimension is assurance that refers to the knowledge and courtesy of the employees in dealing with the issues of the customers. In the case of American Express, employees are given all the basic information about the customers that is helping them to have the knowledge about the customer (Ashley & Tuten, 2015). The last dimension is the empathy that discusses about the importance of individualized attention to the customers. Heterogeneity is important for the credit card customers due to the reason that credit card owners are having different usability of their cards. Some of them are using for booking flight tickets while some of them are paying restaurant bills (Sivakumar, Li & Dong, 2014).
2. In accordance to their claim, it is important for them to meet the ethical standards in service delivery by means of providing effective services to the customers (Pearson, 2017). In addition, the services should be made more diverse and round the clock in order to deal with the customers having different social and cultural backgrounds and from different time zones. The approach should become more global and universal to be the most respected service brand in the world. Cultural differences should be given the most focus in order to be the most respected brand across different cultures.

Conclusion

It is concluded that American express is operating with diverse service portfolio in order to effectively cater to the global customers. Service heterogeneity of American express is another service characteristic that is helping in catering to different customer needs. In addition, they are having the need of ethical service delivery in becoming the most respected brand in the world.

Case study: 6 (Procter & Gamble)    

Case summary

Procter and gamble is one of the leading consumer brands in the world with having extensive distribution networks. However, they are facing the channel conflict with their retailers that may affect their effectiveness. They are also having the need for alternate transport mediums in the distribution strategy.

Key marketing issues

• Direct selling channel: this refers to the strategy of direct selling the products to the end customers without having the presence of intermediaries such as retailers.
• Channel conflict: this issue can get raised between the channel partners for different reasons. In the case of P&G, preferences of one partner over others will lead to channel conflict.
• Transportation mode: this refers to the mediums to be used in transporting the goods from the distribution centers to the retailers.

 Personal case analysis

I learned that channel conflict is one of the major issues to get emerged in the distribution mechanism. I have also identified the major reasons for channel conflict for Procter and gamble. In addition, I also learned about the effectiveness and limitations of the direct selling channel.

Case questions

1. Procter & Gamble should not initiate the direct channel strategy in selling their products to the customers (Us.pg.com, 2018). This is due to the reason that they have expertise in distributing the goods but not in the retailing process. From their initial stage of business operation, Procter & Gamble is depending on the third party retailers for selling to the end customers (Mohapatra, 2013). Thus, if they initiated direct selling strategy now, then they would have to incur added cost and responsibilities. They have to maintain a separate department to deal with the end customers along with considering the elements in customer services.
2. There are number of issues can be generated from the special arrangements of Procter & Gamble for Amazon.com. One of the major issues that can get emerged is the conflict with other online retailers such as Walmart.com. This is due to the reason that every other online retailers will ask for similar arrangements from Procter & Gamble. It will get difficult for Procter & Gamble to get similar arrangements for all and will affect the retailer relationship (Payaud, 2014). Thus, this will lead to affect their overall retail strategy.
3. It is recommended that Procter & Gamble can initiate transport mediums other than the trucks in order to transport goods to the retailers. Procter & Gamble is having their larger numbers of distribution centers strategically located. Thus, the chances of using waterways and airways are less. However, railroad can be used for more cheaper and bulk transportation. For instance, railways are cheaper than roadways in the Indian subcontinent (Mahapatra, Roy & Biswal, 2013).

Conclusion

It is concluded that Procter & Gamble should not initiate direct selling strategy in order to maintain their effectiveness. In addition, it is also concluded that Procter and Gamble is going to face channel conflict due to the having more preferences for Amazon.com. It is also identified that railroad can be a viable option for them as their transportation medium.

Case study: 7 (L’Oreal Paris)

Case summary

L’Oreal is having extensive approach of integrated marketing including both online and offline mediums. This helped in further brand resonance with the customers. In addition, do it yourself videos are also helping in enhancing customer connectivity with the brand rather than just attracting them. The core function of the ambassadors is to communicate the brand message to the target customers through their own popularity. In the case of content marketing, L’Oreal should more focus on creating stories.

Key marketing issues

• Integrated marketing strategy: this includes mediums that are being used in communicating the brand message to the customers. L’Oreal is having usage of both online and offline mediums.
• Brand Ambassadors: these are the forms of celebrity endorsements where the personal branding of the celebrities is being used for communicating the brand message.
• Content marketing: content marketing refers to the relevance of stories in the brand communication that can help customers to relate.

Personal case analysis

I learned that effective approach of the integrated marketing is important in communicating the brand message to larger customer segments. I also learned the challenges that may have to face in selecting the brand ambassadors. The importance of content marketing is also got clear for me for the business organizations.

Case questions

1. It is stated that in terms of offline marketing strategy, L’Oreal has opted for celebrity endorsements involving different women across the world (Mulhern, 2013). One of the major strengths of their integrated strategy is effective brand relationship and connection with the target customers (loreal.com, 2018). It is stated in the case study that slogan of L’Oreal is created keeping in mind the approach of the target customers (Luxton, Reid & Mavondo, 2015 Thus, customer involvement is the major strength of integrated marketing strategy of L’Oreal. On the other hand, the major weakness is the involvement of huge costs by attaching with the celebrities and famous bloggers. This is causing in incursion of added cost for L’Oreal.
2. Brand ambassadors are also effective enough in aligning the brand image and identity with their own and enable the customers to relate between the two variables. In the case of L’Oreal, selected brand ambassadors are majorly celebrities in different field and their start power is effective enough to communicate the brand message (Ambroise et al., 2014). In addition, the L’Oreal is also leveraging on the empowerment of their brand ambassadors in communicating their slogan and vision to the target customers. However, there are some risks also being associated with the selection of ambassadors such as negative publicity. If the selected brand ambassador get indulged in any unethical practices and gather negative publicity then it will affect the band value of L’Oreal. Another risk is the non-alignment of the brand identity with that of the ambassadors. This will communicate different message to the customers and will not help the brand.
3. In the case of content marketing, content is the most important element to consider. This is due to the reason that having a story will enable the customers to get relating to the theme communicated by the brand (Holliman & Rowley, 2014). Without having the story or right content, content marketing will become blander and will not get connected with the target customers.

Conclusion

It is concluded that involvement of both online and offline mediums is helping L’Oreal to have effective brand communication with the customers. It is identified that ambassadors are helping them in getting more exposure in the market along with some probable risks. The importance of stories in content marketing is also analyzed.

Case study: 8 (Under Armour)

Case summary

Under Armour is currently following the premium pricing strategy in their business operation by offering higher end products. It is helping them in gaining more profitability from each unit. Moreover, they are also about to introduce innovative products such as LED equipped shirts for better visibility. They are more importance for cost and demand based pricing of competitor based pricing.

Key marketing issues

• Premium pricing: charging premium for the products and gaining more profitability. This helps in targeting the higher end customers. Under Armour is creating exclusive brand image with the help of premium pricing.
• Cost based pricing: process of pricing decision on the basis of cost of production of the products.
• Demand based pricing: process of pricing decision on the basis of demand of the product in the market.
• Competitor based pricing: process of pricing decision on the basis of pricing of the competitors.

Personal case analysis

I learned about the pricing objectives of the organizations and how they are initiated. I also got to know about the objectives of premium pricing. It also helped to understand about the different determining factors in pricing decisions and how the competitors should be emphasized during the pricing decision. 

Case questions

1. From the different pricing objectives available, it is identified that Under Armour is practicing premium pricing for their ruing shoes (uabiz.com, 2018). This is due to the reason that, in the case study it is stated that Under Armour is having their running shoes starting from S100 per pair (Davcik & Sharma, 2015). This is quite a premium price compared to industry standard. In addition, it is also stated Under Armour will also introduce running shoes ranging from $70 to $100 to cater the larger customer segments. Thus, it can be concluded that this price range is also higher and premium that denotes that Under Armour is initiating premium pricing strategy.
2. In the case of pricing the shirts equipped with LED lights, it is recommended that less emphasis should be given to the pricing of the competitors. This is due to the reason that currently, no other competitors in this market are having shirts equipped with LED lights. In different instances of introducing new products in the market, companies assume the average and probable price in the market and initiate their pricing strategy accordingly (Liozu & Hinterhuber, 2013).
3. It is recommended that in the initial stage of the introduction of the LED equipped shirts in the market, Under Armour should practice the cost based pricing and demand based pricing should be initiated in the following stage. This is due to the reason that in the initial stage of the introduction of the new product, there will be not competition for Under Armour in the market (Liozu et al., 2015). Thus, the pricing should be cost based and product price should be determined in accordance to the cost incurred. On the other hand, it is also recommended that demand based pricing should be initiated in the following stage only after the origination of the competition. This will enable Under Armour to price their product according to the demand in the market. Reducing the price in case of low demand will maintain the equilibrium and in case of higher demand, charging premium will help in increasing the profitability.

Conclusion

It is concluded that Under Armour is having more profitability that sales volume due to their premium pricing. It is identified that they are also targeting the semi-premium markets. It is also concluded that they should give less emphasis on competitor’s pricing in their pricing decisions and cost and demand based pricing strategies should be initiated more.

Reference

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