Case Study Analysis- Marketing
Anoushka10
L05-Slides.pdf
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MAN3106 Marketing Strategy Segmentation, Positioning, and Selecting Target Markets
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Announcements
Frequently Asked Questions: 1. Is it possible to search for information beyond the case study? (see also Week 4) 2. Case study is outdated, can I search for the company position and market stats in
2020? 3. What should I do if there is no political issue in the case? 4. Should I analyse historical information (i.e., first 2-3 pages in the Gillette case)? 5. Completing SWOT before or after situation analysis (see also Week 4) 6. Is there an ideal number of alternative strategies that is recommended to include
in the assignment to secure a high mark? (see also Week 4) 7. Can I indicate XYZ in a particular analysis? Could you please check my XYZ
analysis? (see also Week 4) 8. Reference list
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Structure of Individual Assignment
§ Executive summary – around 200 words-not included in the word count § Table of contents – not included in the word count § Situational analysis (20% of the mark) – Macro environment (PESTLE),
industry, competitors, & customer environment – around 350 words § Internal environment & SWOT analysis (20% of the mark) – around 350
words § Evaluation of current strategies and problem statement (30% of the mark)
– 400 words § Alternative strategies proposition, evaluation, & justification (30% of the
mark) – around 400 words § Reference list (if necessary – not included in the word count)
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Important tips: 1. Students can use tables/figures to present situation analysis, internal
analysis, and SWOT analysis (excluded from word count). For each table/figure, a conclusion should be provided as part of the main text. For instance, students can provide two key conclusions for 5 forces analysis: the level of competitive intensity and the level of attractiveness of the market.
2. Problem statement is different to the above-noted conclusions for each analysis.
3. Problem statement should be based on linking different elements identified in the situation analysis, internal analysis, and SWOT analysis. Thus, problem statement should be based on information provided in the case study.
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Announcements
Important tips: 4. Students can consider novel alternative strategies to address the identified
problem(s). However, the proposed strategies should be justified using the information in the case study. For instance, a company can expand to new international markets, if it has strong financial resources and distributions channels based on evidences in the case study.
5. An alternative strategy could be: Status Quo - with improvements 6. The introduced frameworks/principles in the slides and core textbook are
generic, which can be used for different case studies (and companies in reality). Case studies are not identical, and each case study may provide different facts. As a critical thinker, you should decide which facts are critical and should be considered for a particular analysis.
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Main Topics
1. Introduction 2. Segmentation and Positioning Principles (Chapter 7) 3. Segmentation and Positioning Research (Chapter 8) 4. Selecting Market Targets (Chapter 9)
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Introduction and Relevance
Positioning is the act of designing the company’s offering and image so that they occupy a meaningful and distinctive competitive position in the target customer’s minds. (Kotler, 1997)
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Introduction and Relevance
Positioning risks and errors
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1 Segmentation and Positioning Principles Chapter 7
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Principles of Market Segmentation
Factors that affect the consumer buying process § Decision-making complexity (e.g. high risk, no prior experience, strong
involvement) § Individual influences (e.g. age, occupation, personality characteristics,
socioeconomic status) § Social influences (e.g. culture, reference groups, peers) § Situational influences (e.g. temporal, spatial, dispositional factors)
Need Recognition
Information Search
Evaluation of
Alternatives Purchase Decision
Post- Purchase
Evaluation
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Principles of Market Segmentation
Market Segmentation … is the process of dividing a market into relatively homogeneous segments or groups. … should create segments where the members within the segments have similar attributes; but where the segments themselves are dissimilar from each other. … typically allows firms to be more successful, because they can tailor products to meet the needs of a particular market segment.
Defining the market to be segmented
Identifying market
segments
Forming market
segments
Finer segmentation
strategies
Selecting segmentation
strategy
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Segmenting Consumer Markets
Segmenting consumer market – Three main methods: § Background customer characterises § Customer attitudes § Customer behaviour
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Segmenting Consumer Markets
Background customer characterises: UK socio-economic classification scheme
Source: The Market Research Society.
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Segmenting Consumer Markets
Background customer characterises: The Warner index of status characteristics
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Segmenting Consumer Markets
Background customer characterises: Stages of the family life cycle
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Segmenting Consumer Markets
Three main methods: § Background customer characterises § Customer attitudes: Attitudinal characteristics attempt to draw a causal link
between customer characteristics and marketing behaviour § Mainly examine benefits/preferences customers are seeking
- e.g. Banking industry: Convenient access, security, interest rate
§ Customer behaviour: The most direct method – Covers purchase behaviour, consumption behaviour, and communication behaviour § Purchases behaviour: Early adaptor, Brand loyalty, etc. § Consumption behaviour: Usage pattern, Usage volume, etc. § Communication behaviour: Lead users, Promotions, etc.
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Implementing Market Segmentation
§ Identify the scope and purpose of segmentation (e.g. new product launch, market penetration with existing products)
§ Identify the level of segmentation: Strategic, managerial, and operation
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Implementing Market Segmentation
Challenges/problems of implementing market segmentation § Organisation structure § Internal policies § Corporate culture § Information and reporting § Decision-making process § Resource/capabilities § Operation systems
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2 Segmentation and Positioning Research Chapter 8
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Segmentation Research
Two broad approaches § Priori segmentation
§ Segmentation is known in advance § Easiest way of segmentation based on
demographic or socio-economic stats available in the public domain (e.g., Target Group Index, ACORN)
§ Post-hoc or cluster-based segmentation § Segmentation is not known in advance § Data will be collected based pre-defined
criteria using quantitative and/or qualitative methods
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Segmentation Research
Post-hoc or cluster-based segmentation
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Positioning Research
Two broad approaches § Qualitative research methods
§ Uncover brand, product, company image § Semi-structured techniques to gain in-depth understanding of respondents
perceive the world around them § Effective in development of advertising programmes
§ Quantitative approaches - Investigate positioning relative to: a. Position of major competitors in the market (e.g., market share, coverage,
product portfolio, etc) b. Target customers’ desires and needs (e.g., value for money, reliability, quality,
safety, convenience, etc)
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Positioning Research
Quantitative approaches – Attribute profiling methods
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Positioning Research
Quantitative approaches – Attribute profiling methods & Perceptual map
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Positioning Research
Quantitative approaches – Attribute profiling methods & Perceptual map
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3 Selecting Market Targets Chapter 9
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Introduction
Targeting … means choosing to focus on one (or more) market segments based on their attractiveness. … determines which customer group(s) the organization will serve (and which not). § Example of different targeting strategies
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The Process of Selecting Market Targets
The process of selecting market targets 1. Define the market 2. Define how the market is segmented 3. Determine market segment attractiveness 4. Determine current and potential strength 5. Making market/segment choices
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The Process of Selecting Market Targets
1. Define the market Product-customer matrix: The underlying structure of a market can be understood as a simple grouping of customers and products/services § Grouping products/services in banking: Provide
access to cash, provide security, but now/pay later, cashless payment, interest on saving, other specialised services
§ Grouping customer preferences/needs in banking: Convenience, easy to use, efficiency, trust, interest rate, and other preferences
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The Process of Selecting Market Targets
2. Define how the market is segmented (see Chapters 7 & 8) 3. Determine market segment attractiveness (see Situation analysis)
§ Market factors § Competitive factors § Economic/technological factors § Business environment factors
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discuss the impact of evolution of music industry on the music player/speaker market and potential new market segments
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The Process of Selecting Market Targets
4. Determine current and potential strength Recap: Competitor analysis in Chapter 5 Recap: Resource Portfolios in Chapter 6
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The Process of Selecting Market Targets
5. Making market/segment choices
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Propose hypothetical primary targets, secondary targets, and possibilities for: § Secret Escapes § Contiki
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Propose hypothetical primary targets, secondary targets, and possibilities for: § Galaxy Z Flip £1300 § Galaxy A90 £399
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Propose hypothetical primary targets, secondary targets, and possibilities for: § Boohoo.com
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Reality in Many Organisations
The End. Have Fun!
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Reading Resources
Chapters 7, 8, & 9: Hooley, G., Piercy, N. F., and Nicoulaud, B. (2017), Marketing Strategy & Competitive Positioning, Prentice Hall, 6th Edition.
Chapter 5: Ferrell, O. C. and Hartline M. D. (2014), Marketing Strategy, Cengage, 6th Edition.
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2), 1-10.
Green, P. E., & Krieger, A. M. (1991). Segmenting markets with conjoint analysis. Journal of Marketing, 55(4), 20-31.
Hooley, G., Broderick, A., & Möller, K. (1998). Competitive positioning and the resource-based view of the firm. Journal of Strategic Marketing, 6(2), 97-116.
Moschis, G. P., Lee, E., & Mathur, A. (1997). Targeting the mature market: opportunities and challenges. Journal of Consumer Marketing, 14(4), 282-293.
Yankelovich, D., & Meer, D. (2006). Rediscovering market segmentation. Harvard Business Review, 84(2), 122.
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Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis framework Week 2 - Strategic marketing planning Gillette case study situation analysis Week 3 - Competitive market analysis Gillette case study situation analysis
Week 4 - Understanding the organisational resource base - Competing through innovation
Gillette case study SWOT analysis
Week 5 - Segmentation, positioning, and selecting target markets Gillette case study problem identification & alternative strategies provision
Week 6 - Creating competitive advantage Individual assignment Q&A Week 7 - Competing through marketing mix Using metaphors in marketing campaigns
Week 8 - Competing through superior service and customer relationships
Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard control measures
Week 10 - Ethics and social responsibility in marketing strategy - Evolving topics in marketing strategy
Group discussion on CSR and crisis management
Week 11 - Module Revision Exam preparation Q&A
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