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Case study 2
 

Case study 2

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    Case study 2 Case study 2 Document Transcript

    • Brett  Henderson  COMM  636:  Integrated  Marketing  Communications    Case  Write  up  8.2    October  2,  2012   Statement  of  the  problem   This  case  study  focuses  on  a  new  entrepreneurial  venture  between  two  friends  Paul  Fry  and  John  Kirk.  After  researching  the  market  of  organic  pet  food,  the  two  friends  from  college,  John  a  recent  graduate  of  veterinary  school,  and  Paul  who  has  a  master’s  degree  in  biology,  decided  to  create  their  own  organic  pet  food.  They  will  sell  their  organic  pet  food  in  the  animal  clinic  that  they  own  in  Austin,  Texas.  The  problem  that  they  are  faced  with  now  is  marketing  this  new  product  on  a  budget.  With  Healthy  Gourmet  food  being  a  start  up  product,  their  budget  for  advertising  and  marketing  is  very  minimal.    They  are  focusing  on  a  two-­‐year  plan  because  of  the  budget  limitations.  This  problem  can  have  a  huge  effect  on  how  well  the  company  does,  if  they  don’t  figure  out  the  marketing  future  of  the  company  it  can  cause  the  product  to  fold.   List  of  critical  factors   1. Focus  group  to  gather  information  on  how  to  market  the  product   2. Exploratory  research  to  future  understand  the  target  market   3. Website  and  social  media  plans  to  be  able  to  market  the  product   4. Advertisement  plan  to  expose  the  product  to  the  target  market   5. Marketing  materials  to  continue  to  keep  the  brand  in  the  minds  of  the  target   market  
    • Definition  and  evaluation  of  alternatives  1. First  thing  I  would  do  is  form  a  focus  group   a. Pro:  A  focus  group  would  give  let  Paul  and  John  get  a  feel  on  how  the   potential  buyers  feel  about  their  product.  It  would  give  them  insight   on  how  they  should  move  forward  with  developing  and  marketing  the   pet  food.  This  is  very  valuable  insight  to  have,  because  with  the   limitations  on  advertising  budget  they  can’t  afford  to  waste  any  of   their  budget  on  something  that  won’t  positively  enhance  their   product.   b. Con:  This  takes  planning,  manpower  and  time  to  conduct.  They  will   need  to  select  a  group  of  people  that  will  give  them  good  information   that  they  can  convert  to  a  marketing  plan.  They  will  need  to  spend   time  at  a  location  mediating  the  focus  group.  They  will  then  take  the   time  to  transcribe  it  and  decided  which  way  they  are  going  to  market   the  product.  2. Based  on  the  feedback  of  the  focus  group,  they  should  do  further  research  or   the  purchase  behaviors  of  a  more  general  pet  owner.  They  should  conduct  an   experiment  where  they  let  pet  owners  do  a  free  trial  &  taste  test.  They  should   distribute  out  sample  size  portions  of  their  pet  food  to  pet  owners.  Attached   to  the  sample,  they  should  attach  a  mail  in  survey  that  will  enter  the   participant  into  a  drawing  for  free  organic  pet  food  for  a  year.     a. Pro:  This  will  give  the  potential  customers  a  trial  of  the  pet  food.  They   should  have  faith  in  their  product  that  if  they  can  get  it  into  a  
    • household  than  the  pet  owner  would  choose  it  next  time  they  went  to   buy  food.  The  raffle  will  show  the  participants  that  their  participation   is  serious  to  the  company  and  the  potential  customers  would  love  the   chance  to  get  free  pet  food  for  a  year.   b. Con:  This  type  of  experiment  will  take  more  time  to  conduct.  They  will   have  to  perfect  the  survey  to  get  correct  information.  They  will  have   to  pay  close  attention  to  each  survey  returned  and  throw  out  the   surveys  that  they  can  tell  didn’t  have  honest  answers.  Another   complication  will  be  finding  a  sample  size  large  enough  to  distribute   the  sample/survey’s.    3. The  next  step  I  would  take  is  to  build  the  website  and  social  media  plan.     a. Pro:  Having  a  fully  functional  website  will  give  potential  new   customers  a  way  to  get  more  information  about  the  product.  They  will   also  be  able  to  sell  their  product  via  Internet  and  not  only  have  to  rely   on  selling  it  in  house.  They  should  also  create  a  social  media  plan  to   get  their  name  out  in  the  world.  They  should  create  a  Facebook  fan   page,  which  will  allow  their  customers  to  interact  with  them.  They   will  also  be  able  to  create  polls  in  which  they  can  test  their  target   market  on  different  products.  They  should  also  create  a  Twitter  to   post  coupons  and  specials  and  also  create  a  platform  to  interact  with   clients.     b. Con:  According  to  the  book,  the  website  will  cost  $40,000  to  create.   That  is  a  large  chunk  of  the  budget  spent  just  on  the  website.  They  are  
    • only  able  to  spend  $100,000  over  two  years  so  that  puts  a  huge  crunch   on  them.  That  will  leave  less  money  to  create  a  marketing  plan.  They   will  need  to  put  in  the  work  on  the  social  media;  this  will  take  time   away  from  development,  sales  and  time  in  the  shop.  If  they  choose  to   hire  someone  to  run  their  social  media  and  marketing,  which  will  save   them  time  but  cost  them  more  money  from  their  set  budget.    4. They  have  a  pretty  solid  advertisement  plan  in  place.  They  will  use  radio  ads   to  spread  their  product  and  raise  awareness.  Each  30-­‐second  radio  ad  will   cost  $250.  They  opted  to  do  four  commercials  a  week  for  the  first  six  months,   and  then  two  per  week  to  maintain  awareness.  I  would  also  ad  the  spread  in   the  Austin  Monthly  publication.     a. Pro:  The  radio  spots  will  raise  tons  of  awareness  to  a  mass  audience.   This  will  get  their  brand  out  in  the  open  and  it  will  drive  people  to   their  website  or  clinic.  This  is  a  pretty  inexpensive  way  to  advertise   and  build  brand  awareness.  A  creative  ad  spread  in  a  general  Austin   magazine  will  draw  customers  to  the  site  as  well.  The  initial  process   this  advertising  plan  should  be  to  build  up  a  brand.  These  are  two   ways  that  work  in  an  inexpensive  efficient  way.   b. Cons:  It  will  be  hard  to  gauge  how  efficient  this  type  of  advertisement   really  is.  If  they  are  combining  this  with  other  types  of  marketing  they   won’t  really  be  able  to  know  which  one  works  more  efficiently.  It  still   costs  quite  a  bit  of  the  budget  for  the  radio  ads.  The  publication  ad  has  
    • potential  to  go  unseen  if  it  doesn’t  reach  the  correct  target  audience   because  of  generality  of  it.     5. They  have  an  idea  on  how  they  want  to  use  some  marketing  materials  to   drive  revenue.  They  plan  on  sending  mails  to  10,000  households,  four  times  a   year.  I  think  the  mailers  should  have  coupons  they  can  bring  in  to  get  5%  off   of  that  purchase.  This  will  give  the  clients  a  reason  to  come  into  the  store,   and  it  will  also  give  the  company  a  way  to  track  how  many  customers  it   drives  to  the  store.  If  they  have  a  website  store  they  can  put  a  coupon  code  on   the  flier  and  still  track  it  that  way.   a. Pros:  This  will  reach  a  lot  of  households.  The  reason  I  choose  this  in   the  5th  position,  even  though  I  think  it  will  be  effective,  is  because  I   want  them  to  narrow  down  their  target  market.  If  they  are  able  to   build  a  sample  of  households  that  would  enjoy  these  coupons  than   they  won’t  be  blindly  spend  money  on  home’s  that  don’t  have  pets.     b. Cons:  People  sometimes  don’t  look  at  advertisements  through  the   mail;  they  just  throw  them  away,  which  would  be  a  waste  of  money.  It   can  be  difficult  to  judge  the  impact  it  has  on  customers  returning  after   the  initial  buy  with  the  coupon.     Conclusion     In  conclusion,  I  recommend  John  and  Paul  take  a  five  step  process  in  the  development  of  their  marketing  plan.  The  first  step  is  setting  up  and  conducting  a  focus  group  to  generate  a  starting  point  and  how  to  market  to  that  particular  group  of  potential  clients.  After  the  conclusion  of  the  first  step,  take  that  information  and  
    • help  generate  a  survey  to  distribute  with  a  sample  of  their  organic  dog  food.  Distribute  these  to  pet  owners  that  they  are  targeting  as  their  target  market.  This  is  the  next  step  of  the  process,  and  to  make  sure  the  surveys  are  returned  attach  a  raffle  for  free  organic  pet  food  for  a  year.  In  step  number  three  I  recommended  creating  the  social  media  plan  as  well  as  making  sure  the  website  is  created  and  maintained.    Step  four  is  to  create  an  advertising  plan  with  radio  spots  and  magazine  spreads,  these  would  create  a  buzz  about  the  company  and  start  the  branding  process.  And  the  last  step  of  the  process  is  to  create  a  marketing  plan  and  system  in  which  to  track  flyers  they  send  to  households.  I  believe  that  with  this  five-­‐step  process  Health  Gourmet  would  become  very  successful.  It  will  take  a  lot  of  time  and  patience  to  make  this  company  work  but  it  has  potential  to  be  very  wealth  business  venture.