Download Case Study - (Marketing)

Marketing Case Study Notes
SYLLABUS POINT
Examine why ethical
behaviour and
government regulation are
important in marketing
Assess why a mix of
promotional strategies is
important in the marketing
of goods/services
Explain how globalisation
has affected marketing
management
-
production
approach
-
selling approach
-
marketing
approach
-
mass market
-
niche market
-
psychological
influences
NOTES
British & Imperial Tobacco and American Tobacco will face restrictions on the packaging and branding of their
products with the government’s plain packaging cigarette laws. These have been introduced because the
government believes that the marketing of tobacco products is unethical. As a result, the companies will restructure
their operations and marketing to focus on cost rather than differentiation.
Windows Vista was subjected to a $50million promotional campaign, which featured extensive advertising around
the world, however there was insufficient on the product element of the marketing mix, as the OS did not satisfy the
demands of Microsoft’s customers.
The growth in international online retailers operating in Australia has seen retailers such as Harvey Norman and JB
Hi-Fi establish online channels of distribution to remain competitive.
Global branding has allowed McDonald’s to be recognised around the world, to the extent where the company’s
famous golden arches logo can be featured on marketing campaigns without the company’s name even appearing.
Henry Ford and the Ford Motor company pioneered the assembly line method of production, and in doing so were
also the leaders of the production approach to marketing, operating under the philosophy that if the business created
products of a high enough quality, their customers would automatically buy them.
Many advertisements for home appliances during the 1950s and 1960s featured extensive descriptions of why the
appliances would be of benefit to housewives (ie they focused on convincing the target market that they wanted a
product that the business had produced)
In the lead up to the introduction of Coke Zero, Coca-Cola identified a new market of middle-aged male customers
who sought the full flavour of regular Coca-Cola but with the low calories of Diet Coke. The company responded
to these wants and needs by producing Coke Zero, which is now an established element of Coca-Cola’s product
range.
Energy Australia operates with a mass target market, since all people use electricity.
All magazines operate in niche markets, with magazines such as Zoo and Wheels being marketed at vastly different
markets to Women’s Weekly or Better Homes and Gardens.
The marketing campaigns of high-end fashion companies such as Gucci target individuals who want to show off
their supposed wealth and affluence, and as such will attract customers of a similar psychological type.
SYLLABUS POINT
-
sociocultural
influences
-
economic
influences
-
government
influences
deceptive and
misleading
advertising
-
-
price
discrimination
-
implied conditions
-
warranties
-
truth, accuracy
and good taste in
advertising
-
products that may
damage health
-
engaging in fair
competition
product life cycle
analysis
-
NOTES
McDonald’s has had to alter its menu options in different geographical areas around the world. For example, in
Indonesia, it is common for many meals to be served with rice rather than fries, and in several predominantly
Muslim countries the company’s famous pork McRib product is unavailable.
During periods of economic downturn consumers are less likely to spend, and as such retail businesses must adjust
their marketing strategies. This was the case for Kogan, which added a 37” flat screen TV to its product range in
2009, priced at $900 (the amount of money households received as part of the fiscal stimulus package).
The array of anti-smoking campaigns presented by the federal and NSW governments has seen companies such as
Imperial Tobacco and British & American Tobacco experience decreased sales as more smokers attempt to quit.
In 2010 the ACCC found that LG had ‘cheated’ during the energy testing process for two of its refrigerator models,
which allowed it to gain a higher energy star rating which was sued in the marketing of the products.
McDonald’s has been accused of price discrimination in that different products cost different amounts at different
stores, however because the company operates as a franchise and as such each store is technically an individual
business, it has avoided any legal complications.
In 2010 the Federal Court ruled that the arthritis drug VIOXX was unfit for purpose and of unmerchantable quality,
as it doubled the risk of heart attack.
Crumpler offers its companies a Til Death Do Us Part warranty, which more than satisfies the minimum legal
requirements of a warranty.
Coca-Cola was forced to withdraw its myth-busting marketing campaign which claimed that Coca-Cola does not
rot your teeth or make you fat, as the ACCC advised Coca-Cola that the advertisements were creating a misleading
impression of the product.
Kellogg’s Nutri-Grain cereal is marketed as iron-man food; however it is 32% sugar. Similarly, Coco-Pops are
marketed as being a source of wholegrain fibre, yet are over 33% sugar.
In 2011 it was announced that junk food advertisements targeting children could not be screened during children’s
programs on TV. This had the most profound effect on McDonald’s, as it was the market leader in this niche
market.
Shell and Caltex have been investigated several times by the ACCC and other regulatory bodies for price fixing,
however no conclusive findings have been made.
Kodak is currently in the decline stage of the product life cycle, as technology has seen traditional photographic
methods (to which Kodak owned the rights) replaced with unpatented digital methods.
SYLLABUS POINT
-
market research
-
establish market
objectives
-
identify target
market
implementing,
monitoring and
controlling
market
segmentation
product
differentiation
product
positioning
-
-
branding
-
packaging
-
market-based
pricing
-
price skimming
-
price penetration
-
loss leader
-
price and quality
interaction
NOTES
Before introducing Coke Zero Coca-Cola undertook extensive primary market research to determine whether there
was a sufficient market for a new product.
In the past few years Coles has lost approximately 1.7% of market share to Woolworths (approximately $600
million). Increasing market share is the primary marketing objective of Coles at present.
While originally a motorbike company, Yamaha successfully achieved the marketing objective of expanding their
product range through the introduction of their home theatre and stereo products.
Market research undertaken by fashion retailer Sportsgirl revealed a primary target market of 18-25 year old
females.
Revising marketing strategy: Sony builds its success on the development of innovative products, such as the
world’s first 3D capable digital cameras.
Holden produces different products for different target markets. Its Colorado ute would be predominantly targeted
at middle-aged males, while the Barina and Cruze small cars are targeted more towards younger, female drivers.
The Body Shop distinguishes itself from its competitors by only offering beauty products that are environmentally
sustainable, even down to the use of reusable or recyclable packaging.
Rolex watches are considered by most to be of a much higher quality than Casio.
Many businesses, such as McDonald’s, Coca-Cola and QANTAS, have achieved such successful branding that
their corporate logos can be recognised without the company name appearing alongside.
McDonald’s has improved the environmental sustainability of its products by changing their packaging from
polystyrene containers to cardboard packaging.
Demand for hotel accommodation in certain areas will fluctuate seasonally, and as such the prices charged by
Thredbo and Perisher Blue will also fluctuate.
Apple consistently introduces its new products at a high price, so as to earn maximum revenue from those
customers who want to be the first to get the new product.
To establish itself as a legitimate contender in the coffee market, 7-Eleven introduced $1 coffee all day to try and
capture a share of the market.
Gillette and Shick are known for selling their razors at dramatically low prices, but then selling razor refills at a
much higher price, as any customer who purchases the razor will at some stage have to buy refills.
Many prestige businesses such as Rolex and Ferrari have high expectations of quality from their customers, which
means that their customers are more willing to pay a much higher price for the products.
SYLLABUS POINT
-
advertising
-
personal selling
-
relationship
marketing
-
sales promotion
-
public relations
-
opinion leaders
-
distribution
channels
intensive
distribution
selective
distribution
exclusive distr.
physical
distribution issues
e-marketing
global branding
global
standardisation
customisation
-
NOTES
Crumpler attracted the attention of NSW Police through its guerrilla marketing campaign in which the company’s
name and logo was graffiti-ed around the streets of Sydney.
Car dealers and most retail businesses engage in personal selling through sales assistants.
Coles’ FlyBuys rewards program and Woolworths’ similar Everyday Rewards scheme attempt to ensure repeat
customers by offering rewards (discounts, free products and frequent flyer points) for shopping at the respective
supermarket.
Many supermarkets, such as Woolworths and Costco, offer free samples of their products to encourage customers
to buy them
Domino’s Pizza regularly issues coupon discounts to its customers to encourage them to buy from Domino’s, rather
than Pizza Hut or Eagle Boys.
The publicity experienced by US Airways in response to the Flight 1549 crash was surprisingly positive and
reinforced the brand’s image of safety, even though the plane had crashed.
Swisse uses many professional athletes, such as Ricky Ponting and James O’Connor as opinion leaders in its
advertising campaigns, as they are seen as extremely healthy individuals, which reflects well on a business selling
health supplements.
Domino’s Pizza, Pizza Hut and Eagle Boys Pizza all use delivery distribution channels, which distinguishes them
from other businesses in the fast food sector.
Pura Milk is available at almost all supermarkets as well as many convenience stores and service stations.
Billabong clothing is available at several stores, such as City Beach and Coopers, however it is not as widely
available as other brands such as Bonds.
Holden cars can only be purchased new from its very few dealerships, which often cover a vast geographical area.
Companies such as Toll and Linfox specialise in assisting businesses overcome physical distribution issues such as
transport, warehousing and inventory.
7-Eleven popularised its Free Slurpee and BYO Slurpee Cup promotional days through social media advertising.
McDonald’s products are available in 119 countries, and in all 119 the golden arches logo appears unchanged.
Despite its varying menu options around the world, the Big Mac is available in every McDonald’s restaurant
worldwide with an identical recipe being used around the world.
McDonald’s offers rice in Indonesia, beer in France & Germany, sake in Japan and noodles in the Philippines.