It is to do the company cases on each page. Its to read the company case and do a summary about it (case study) then answer the questions at the end after the company case.
UNIVERSITY OF THE SOUTHERN CARIBBEAN MKTG201: PRINCIPLES OF MARKETING FINAL EXAM CASE STUDY Instructions: As discussed, you are being given 3 cases to complete as final exam. All three cases must be completed accordingly. You can consult your notes and textbook for assistance. - Case #1 - 50mks - Case #2 – 30mks - Case #3 – 30mks Final Score: 110mks General Requirements: Case response must contain: o Case Title o Summary of the Case, should be no more than 1 paragraph o Suitable Headings (e.g. Summary; Response to Question 1-1 etc.) Font style or size (Times New Roman – 12 or Calibri – 11) Writing – clear, easily read Language – spelling, grammar, punctuation Cover page (containing Name, Date and ID #) [Philip_Kotler,_Gary_Armstrong]_Principles_of_Mark(z-lib.org) (1).pdf CHAPTER 2 | Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships 87 inventor of Ethernet, made a prediction in 1995 that, within a year, the Internet would spectacularly collapse. In 2007, The New York Times predicted that Twitter would never be any more relevant to modern-day communication than an old-fashioned short-wave radio. Tuning into predictions can be dangerous, but should they really be ignored? 2-11 In some cases, short-term predictions are far more reliable than long-term ones. To what extent should businesses base their long-term planning on the views of “experts”? (AACSB: Communication; Analytic Thinking) 2-12 Business Monitor International is one of the several or- ganizations that seek to predict future trends in sectors, countries, and financial markets. How are these services sold to businesses as legitimate business planning tools? (AACSB: Communication; Reflective Thinking) Marketing by the Numbers McDonald’s vs. Burger King In 2013, McDonald’s reported profits of almost $6 billion on sales of $28 billion. For that same period, Burger King posted a profit of almost $234 million on sales of $1.1 billion. So McDonald’s is a better marketer, right? Sales and profits provide information to compare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Appendix 2, Marketing by the Numbers, discusses other marketing profitability measures beyond the return on marketing investment (marketing ROI) mea- sure described in this chapter. Review the Appendix to answer the questions using the following information from McDonald’s and Burger King’s incomes statements (all numbers are in thousands): McDonald’s Burger King Sales $28,105,700 $1,146,300 Gross Profit $10,902,700 $ 951,000 Marketing Expenses $ 1,600,500 $ 321,600 Net Income (Profit) $ 5,585,900 $ 233,700 2-13 Calculate profit margin, net marketing contribution, mar- keting return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for both com- panies. Which company is performing better? (AACSB: Communication; Use of IT; Analytic Thinking) 2-14 Go to Yahoo! Finance (http://finance.yahoo.com/) and find the income statements for two other competing compa- nies. Perform the same analysis for these companies that you performed in the previous question. Which company is doing better overall and with respect to marketing? For marketing expenses, use 75 percent of the company’s reported “Selling General and Administrative” expenses, as not all of the expenses in that category are marketing expenses. (AACSB: Communication; Analytic Reasoning; Reflective Thinking) Video Case OXO You might know OXO for its well-designed, ergonomic kitchen gadgets. But OXO’s expertise at creating handheld tools that look great and work well has led it to expand into products for bath- rooms, garages, offices, babies’ rooms, and even medicine cabi- nets. In the past, this award-winning manufacturer has managed to move its products into almost every home in the United States by relying on a consistent and in some cases nontraditional mar- keting strategy. But in a highly competitive and turbulent market, OXO has focused on evaluating and modifying its marketing strategy in order to grow the brand. This video demonstrates how OXO is using strategic planning to ensure that its marketing strategy re- sults in the best marketing mix for the best and most profitable customers. After viewing the video featuring OXO, answer the following questions: 2-15 What is OXO’s mission? 2-16 What are some of the market conditions that have led OXO to reevaluate its marketing strategy? 2-17 How has OXO modified its marketing mix? Are these changes in line with its mission? Company Case Dyson: Solving Customer Problems in Ways They Never Imagined From a head-on perspective, it has a sleek, stunning stainless steel design. With wings that extend downward at a 15-degree angle from its center, it appears ready for takeoff. The latest aeronautic design from Boeing? No. It’s the most innovative sink faucet to hit the market in decades. Dyson Ltd.—the company fa- mous for vacuum cleaners, hand dryers, and fans unlike anything else on the market—is about to revolutionize the traditional faucet. The Airblade Tap—a faucet that washes and dries hands with completely touch-free operation—is the latest in a line of revolutionary Dyson products that have reinvented their cat- egories. In fact, Dyson was founded on a few very simple prin- ciples. First, every Dyson product must provide real consumer benefits that make life easier. Second, each product must take a totally unique approach to accomplishing common, everyday 88 PART 1 | Defining Marketing and the Marketing Process “I like going for unglamorous products and making them a plea- sure to use,” Dyson told Fortune magazine. By taking this route, the company finds solutions to the problems it is trying to solve. At the same time, it sometimes finds solutions for other problems. For example, the vacuum motor Dyson developed sucked air with unprecedented strength. But the flipside of vacuum suction is exhaust. Why couldn’t such a motor blow air at wet hands so fast that the water would be pressed off in a squeegee-like manner, rather than the slow, evaporative approach employed by commercial hand dryers? With that realization, Dyson created and launched the Airblade, a hand dryer that blows air through a 0.2-millimeter slot at 420 miles per hour. It dries hands in 12 seconds, rather than the more typical 40 seconds required by other hand dryers. It also uses cold air—a huge departure from the standard warm air approach of existing commercial dryers. This not only reduced energy consumption by 75 percent—a major bonus for commer- cial enterprises that pay the electric bills—but customers were much more likely to use a product that worked fast and did the job right. With very observable benefits, the Airblade was rapidly adopted by commercial customers. For example, as part of a comprehensive plan to improve its environmental impact, Los Angeles International Airport (LAX) was looking for a solution to the financial and environmental costs of manufacturing, distrib- uting, and servicing the paper towel dispensers in more than 100 restrooms throughout its terminals. Switching to recycled paper towels helped, but only minimally. The energy used by conventional hand dryers made them an unattractive alternative. But when LAX management saw a demonstration of the Dyson Airblade, it was a no-brainer. With Airblades installed throughout its terminals, LAX was able to significantly reduce landfill waste as well as costs. The overwhelmingly positive feedback from travel- ers was icing on the cake. Today’s Airblades have evolved, guided by Dyson’s customer- centric approach to developing products. With the first Airblade, it was apparent that all that high-powered air is noisy. So Dyson spent seven years and a staggering $42 million to develop the V4 motor, one of the smallest and quietest commercial motors available. The new Airblade is quieter and almost six pounds lighter than the original. But even more advanced is Dyson’s new Blade V, a sleeker design that is 60 percent thinner than the Airblade, protruding only four inches from the wall. Assessing Real Customer Needs Although Dyson sees itself as a technology-driven company, it develops products with the end-user in mind. But rather than us- ing traditional market research methods, Dyson takes a different approach. “Dyson avoids the kind of focus group techniques that are, frankly, completely averaging,” says Adam Rostrom, group marketing director for Dyson. “Most companies start with the consumer and say, ‘Hey Mr. or Mrs. X, what do you want from your toothbrush tomorrow or what do you want from your sham- poo tomorrow?’ The depressing reality is that you often won’t get many inspiring answers.” Rather, Dyson uses an approach it calls “interrogating prod- ucts” to develop new products that produce real solutions to cus- tomer problems. After identifying the most obvious shortcomings for everyday products, it finds ways to improve them. Dyson’s tasks. Finally, each Dyson product must infuse excitement into products that are so mundane, most people never think much about them. The Man behind the Name James Dyson was born and raised in the United Kingdom. Af- ter studying design at the Royal College of Art, he had initially planned to design and build geodesic structures for use as com- mercial space. But with no money to get his venture started, he took a job working for an acquaintance who handed him a blow torch and challenged him to create a prototype for an amphibious landing craft. With no welding experience, he figured things out on his own. Before long, the company was selling 200 boats a year based on his design. That trial-and-error approach came naturally to Dyson, who applied it to create Dyson Inc.’s first product. In 1979, he pur- chased what its maker claimed was the most powerful vacuum cleaner on the market. He found it to be anything but. Instead, it seemed simply to move dirt around the room. This left Dyson wondering why no one had yet invented a decent vacuum cleaner. At that point, he remembered something he’d seen in an industrial sawmill—a cyclonic separator that removed dust from the air. Why wouldn’t that approach work well in vacuum cleaners? “I thought no one was bothering to use technology in vacuum cleaners,” said Dyson. Indeed, the core technology of vacuum motors at the time was more than 150 years old. “I saw