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2015 UNDERGRADUATE CONSULTING CLUB (UCC)
CASE COMPETITION
COMPETITION GUIDE
UCC CASE COMPETITION – COMPETITION GUIDE 2015
2
WELCOME
Welcome to the 2015 UCC Case Competition at the University of Minnesota. We are delighted to
see such dynamic and diverse future global leaders participating this year. The case competition
is designed to enrich and challenge your creativity, analytic and problem solving skills and help
prepare you for a career in today’s rapidly changing business environment.
We encourage you to take full advantage of this opportunity to dive in, connect and learn. We
look forward to hearing your ideas and seeing your presentation.
Good luck,
Sibi Murugesan (Vice President, Case Study Author) & the UCC Executive Board
UCC CASE COMPETITION – COMPETITION GUIDE 2015
3
RULES AND RESOURCES
The following information is provided to help all participants have a positive and productive
experience throughout the entire case competition.
RULES
 The case may not be shared or distributed to anyone outside of the competition at
any time.
 Teams will have about 3 days (85 hours) to work on the case.
 Each team will receive electronic copy of the Competition Guide
 Students may not receive help from any professors or faculty members. All work
presented must be the work of solely the participating team members.
 Only competition staff and judges may attend the presentations.
 Teams who have not yet presented will not be able to view other teams’
presentations.
QUESTION PROTOCOL
Any questions regarding the case and/or competition logistics should be sent to
murug003@umn.edu with the subject line of “2015 UCC Case Competition Question.” While
teams are allowed to reach out with data related questions, requests seeking guidance on
analytic process or final recommendations/opportunity will not be able to be addressed. When
submitting a question, please include your team’s name.
Questions will be addressed between 4-5 pm daily on Wednesday and Friday. Questions for
Thursday will be answered in person at the Q&A session on 4/16 in CSOM 2-231 from 5:30 pm –
6:30 pm. All answers will be emailed to team captains. This is meeting is not required to attend.
FINAL DELIVERABLE
 Teams may submit only one final presentation to the judges
 The presentation must be in Microsoft PowerPoint, with printed handouts for judges
 The presentation must be in English
 Final PowerPoints must be e-mailed to ugcc@gmail.com by 8 AM on Saturday
4/18/2015.
SUPPLIES
We will project your presentation for you. Please put your presentation on the flash drive.
UCC CASE COMPETITION – COMPETITION GUIDE 2015
4
PRIZES
 FIRST PLACE: $2,000 for the team
 SECOND PLACE: $500 for the team
 THIRD PLACE: $250 for the team
CASE COMPETITION DAY SCHEDULE
Saturday April 18th, 2015
Below is a preliminary schedule of events for the day of competition. Please note that all times
are tentative and may be subject to change. The UCC will notify all team captains of any changes
made.
8:00 AM - Teams submit final version of power point to murug003@umn.edu
9:00 AM - Judges arrive to Carlson; Judges' Briefing
9:30 AM - Preliminary presentations begin
12:00 PM - Lunch is catered
1:00 PM - Preliminary Presentations resume
3:00 PM - Final Presentations begin
4:00 PM - Announcement of winners; informal networking
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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DAY OF COMPETITION LOGISTICS
Important Notes
 The day of the competition, students will report to CSOM L-126 at least 10 minutes prior
to their assigned presentation time
 Each team will prepare and distribute printed handouts of presentation slides to all 7
judges
 Each team will save their PowerPoint on a flash drive
 Teams are not permitted to revise their slides at any point after the 8AM submission.
 Each round will run as follows:
o 5 Minutes: Presentation set up
o 10 Minutes: Uninterrupted presentation
o 10 Minutes: Q&A
DAY OF COMPETITION ROOMS & LOCATIONS
All case competition rooms will be located in the Carlson School of Management on West Bank,
adjacent to Hansen Hall.
CSOM L -126 – UCC Case Competition Base; Team Check In; Team “Locker” Room
CSOM 1-143 – Preliminary Round Location
CSOM 2-224 – Final Round Location
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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JUDGING/SCORING
Rubric
Judges will evaluate teams on the following 115-point scale.
Introduction, Identification of Business Issue and Research Objective (15 points)
· Analysis of Kable King & cable/TV industry
· Clearly defined business issue
Specific, actionable and critical research objectives, stated as questions Analysis (20 points)
· Strategic orientation and focus
· Insightful, critical Information to report vs nice to know
Interpreting the Data (15 points)
· Use of qualitative (primary research) and quantitative (UCC) data
· Ability to mine the data and derive actionable insights
· Creativity, thoughtfulness and validity of data points/output
Final Recommendation and Opportunity (20 points)
· Evaluation of feasible recommendation and opportunity (quantified)
· Realism and practicality of recommendation and opportunity
· Justification of recommendation and opportunity
· Strategic orientation and focus
· Logical tie-in to analysis
Organization of Material and Overall Presentation (35 points)
· Ability to defend position
· Clarity and style of presentation
· Polished deck telling a clear story
· Slide progression (each slide builds on the previous slide)
· Delivery
· Smoothness and balance of work, teamwork
Questions and Answers (10 points)
· Presentation style, communication skills
· Creativity
· Professionalism
· Use of Time
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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HOW TO APPROACH THE CASE
Tips & Suggestions
There is no prescribed method for dividing the work of preparing the case analysis. One
approach is detailed below, but teams are encouraged to work through the case using the
method that best fits members’ strengths and preferences.
DIVIDING THE WORK
Each team member should have a role; it is the team captain’s responsibility to guide the team in
defining & assigning work. One approach might include defining roles based on the judging
criteria:
1. Introduction, Identification of Business Issue and Research Objectives: Greet the
audience; provide a comprehensive overview of the situation, complication and key
issues to be addressed
2. Analysis: Teams should have a fundamental understanding of Kable King’s
business/product offerings, competitive landscape and current category/snacking
category performance. The analysis should tie back to the research objectives and be
insightful. The analysis should evaluate both external and internal factors. A SWOT
analysis is one way participants could review the organization.
3. Recommendation and Opportunity: Normally, teams should analyze two to three
alternatives. The recommended alternative should address the key issues and solve the
problem stated.
4. Business Case: Teams should justify why their recommendation is the optimal solution
and outline key benefits to Kable King.
5. Final Recommendation and Opportunity: The recommended plan of action must be
realistic, practical and attainable. It should tie back to the research objectives and be
supported throughout the duration of the analysis.
6. Conclusion: Teams should conclude their presentation with a summary of key points
and then open the floor to questions from the judges.
PRESENTING
Prior to presenting, the team should designate a member or members to change slides. There
should be balance and flow between presenters. Practicing these transitions can be as important
as the presentation itself. Sloppy or awkward transitions are distracting and show a lack of
preparation to the judges. When entering the presentation room, team members should
introduce themselves to the judges and quickly take their positions. We highly encourage all
team members to present the case and answer questions.
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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QUESTION PERIOD
When the team has completed the presentation, all members should stand and wait for the
judges to begin the question period. When a judge asks a question, be careful that several team
members do not jump in to answer. Team members should discuss prior to the presentation
who will answer certain categories of questions. If the question is unclear, ask for clarification
before trying to present an answer. After a team member has answered a question, a follow up
answer should only be given by another member of the team if it will add value to what was
already said. Teams must also ensure that they do not contradict one another while answering
questions.
Many times judges will tell teams they do not agree at all with the solution presented. When this
occurs, becoming confrontational will only hurt the team. It is at this time when confidence in
the solution pays off. Teams should support their answers by revisiting the facts they presented
and assuring the judge that the chosen plan is the optimal solution to the problem. Teams
should also pay attention to the body language of the judges. When a judge begins to nod their
head in agreement or present other similar language, the person answering the question should
wrap up and allow for the next question to be asked. The objective is to efficiently answer
questions in the 10- minute period.
ATTIRE
It is important to dress professionally while participating in the competition. Business
professional attire is suggested. It is important that team members not only wear professional
clothing, but that they are comfortable in their attire.
THE FIRST PRESENTATION
If this is your first case competition, you may be understandably nervous about the challenging
and fast paced day. Each team can get off to a good start by having a game plan prior to leaving
for the competition. Sometimes the excitement and adrenaline of competing can lead teams to
become disorganized and unfocused. Communication is the key component that will allow teams
to stay on track and complete the presentation to the best of their abilities. Communicating key
information such as time remaining, potential roadblocks or new information will help all
members fully prepare for the presentation and work as a strong unit.
The most important thing to remember about presenting is to leave the outcome in the
presentation room. Premature celebration or feelings of doubt may cause teams to lose sight of
their strategies and not succeed in the competition. Whether teams win or lose, work well or
poorly together, every participant will gain valuable experience from the competition.
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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2015 UCC
CASE COMPETITION
CASE STUDY
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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THE BIG QUESTION
What role does Kable King’s current cable portfolio play in the cable/TV world to differentiate
themselves from competitors and where should they plan to innovate in the future?
SITUATION
Facing stagnant growth in their base cable business, Kable King is looking for a new avenue for
growth. It’s no longer about inventing the next big cable package but coming up with the next
big TV idea.
COMPLICATION
Your client, Kable King, is one of four cable giants in the US market. The four giants all are very
similar in product offerings. Kable King wants to differentiate itself from the other companies
now and in the future and is looking for advice on how to make that happen.
KEY QUESTIONS TO CONSIDER
What role does Kable King’s current cable portfolio play in the cable/TV world and where should
they plan to innovate in the future? As you develop your answer, be sure to take account of the
following considerations:
 Customer Segment Expansion
 Key TV Trends
 TV Innovations
 “Make Your Cable Bundle” Options
 Demographic Impact - Kids/Millennials/Seniors
 The Influence of Changing Media
 Any other key area of primary research (Student discretion)
CASE OPPORTUNITY
Teams should work together to establish the business rationale and outline key elements of a
strategic plan to help Kable King “win” in the TV world. The analysis should explore all, yet should
not be limited to, the key questions outlined above. Once a recommendation is formed, teams
then need to formulate a compelling business and execution/activation plan.
KEY DELIVERABLE
1. Establish the business issue: determine what it is you want to accomplish with your analysis.
Your goal is to clearly define the issue and the specific results to be achieved. This critical first
step of establishing a clear understanding of the business issue will guide you throughout the
duration of the analysis, further allowing you to:
 Identify specific research objectives
 Establish your role in developing an analysis that will lead to actionable
recommendations
 Provide a means for quantifying an opportunity
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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2. Develop analysis: mine the data, highlight key implications and craft a business case with
specific rationales for your recommendations. Your analysis is the basis of the client deliverable
and provides answers in a logical flow. Suggestions to keep in mind as you begin telling your
story:
 Ask yourself what information is critical to report to the client vs. nice to know
 Each slide needs to build upon the previous slide – one way of knowing if your
story flows is by reading the headings on the slides; do they flow from page to
page? If not, there may be something missing, or there may be too much!
3. Finalize analysis, provide recommendations and quantify the opportunity: identify and advise
on possible courses of action for addressing the business issue. Ensure recommendations link
back to the client’s research objectives and tell them to do something to improve their business.
Ensure recommendations are:
 Relevant and feasible
 Linked to the research objectives, the client’s business issue and strategic
priorities
 Supported by the analysis and insights
 Active not passive
 Quantifying an opportunity
 Providing next steps
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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COMPANY BACKGROUND
In 1957, George Kable had a dream. He had been addicted to TV ever since he started watching
cable back in college. He loved it so much that he dreamt of creating his own company to give
excellent cable TV to millions across the country. He took all of the money he had saved for
graduate school and used it to create his own company: Kable King.
Fast forward a decade and Kable King was booming. After its humble beginnings in rural
Minnesota, it had now expanded across the country, operating in New York, Los Angeles,
Chicago and everywhere in between. Kable King was essentially the only cable company in the
US, raking in millions of dollars in profit and giving excellent service to loyal customers. It seemed
that Kable had definitely become king.
Fast forward another two decades in the cable industry. The entrance of three almost
simultaneous new players threatened the existence of Kable King. Each of the three new players
ate huge chunks of Kable King’s market. TV Town gained large market share in the West Coast
market while Cinemagic captured the East Coast. eStream took over the Southern market,
leaving Kable King to function as the market leader in only the Midwest market. George Kable’s
dream seemed shattered.
Over the next decade, through creative marketing campaigns, increased customer service and
better products, Kable King fought tooth and nail in every segment to regain lost market share.
But they were not able to regain their status as “the king of cable.”
Now, all four “Kable Giants” hold essentially the same market share in all 4 markets. Their
product offerings are very similar as are the prices. Every now and again, a company might spike
forward in market share due to a marketing campaign or a new promotion but on the whole, the
four are very comparable.
This has frustrated George Kable. He is tired of being “a part of the herd.” He wants to
reestablish his company as the premiere cable company and return to the glory days. He has
hired your firm to help solve this issue.
CURRENT STRATEGY OF KABLE KING
In 2000, Kable King launched its overall strategy program named “Excellence in Every Channel.”
The main goals of this new program were to return Kable King to focusing on the customer,
through enhancing the ability to enjoy more quality channels/programming at lower costs,
improving its public reputation and making TV watching as seamless as possible.
The future is expected to bring increased digitalization of all links in the value chain and higher
levels of personalization.
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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KABLE KING
Product Portfolio
74%
16%
10%
% of Revenue Breakdown
Cable Packages
Installation &
Maintenance
Promo Space
114
73
126
56
32
52
0.9
0.04
116
77
152
64
30
101
0.7
0.05
120
83
145
65
27
158
0.7
0.02
BC P BC P + A C P A C P + H C P H C P + I & M P S
YEARLY NEW CABLE PACKAGE SALES (IN 100s)
2012 2013 2014
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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Product
Offering
Description Price Cost
Basic Channel
Package (BCP)
10 Channels $30/month $10/month
Basic PLUS
(BCP+)
25 Channels $40/month $15/month
Advanced
Channel
Package (ACP)
40 Channels $55/month $20/month
Advanced PLUS
(ACP+)
55 Channels $65/month $25/month
Hyper Channel
Package (HCP)
100 Channels $75/month $40/month
Hyper PLUS
(HCP+)
100 + Individual
Channels may be
purchased (on
average, 10 extra
channels are
purchases)
$65/month + $2/month
for each additional
channel purchased
$40/month + $1/month
for each additional
channel
Installation &
Maintenance
(I & M)
Kable King will install
your “KableBox” and
will service it
$100 for Installation
(onetime fee); $70 for
Maintenance/visit (on
average)
$10 for Installation (One
time cost); $45 cost for
maintenance/visit (on
average)
Promo Space
(PS)
Companies may buy
space on
“KableBoxes” to
advertise
$250 per KableBox $50 cost per KableBox
*All products are sold online through the company website, www.kableking.net, except for I & M
(which is sold online but installed in person)
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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Experience as a Customer
*Sample size: 5,000 randomly selected customers of the top 4 Cable Market Leaders
10%
12%
37%
41%
% Ranked as Top Driver of Satisfaction (2014)
Quality programming
Quantity of channels
Affordable packages
Personalization to preferences
17%
27%
35%
12%
3%
6%
Kable King Customer Segmentation
YH
YH + C
OH
OH + C
S
S + C
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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Customer Segments
Young
Households
Young
Household +
Children
Older
Household
Older
Household +
Children
Seniors
Seniors +
Children
Abbreviation
YH YH + C OH OH + C S S + C
Segment Description
Head of
Household is
between 18 - 35
Head of
Household is
between 18 – 35
with Children
ages 1 - 17
Head of
Household is
between 36 - 65
Head of
Household is
between 36 –
65 with Children
ages 1 - 17
Head of
Household is
older than 66
Head of
Household is
older than 66
with Children
ages 1 - 17
Top Channels Watched (in no particular order)
1. Travel
2. Food
Network
3. ESPN
4. CW
5. NBC
1. Disney
2. Lifetime
3. Nickelodeon
4. QVC
5. NFL
1. CNBC
2. TNT
3. TBS
4. NBA
5. FOX
1. CNBC
2. FOX
3. Food
Network
4. NBC
5. AMC
1. CNN
2. Food
Network
3. History
4. AMC
5. NATGEO
1. CNN
2. CBS
3. BBC
4. A&E
5. Food
Network
Average Salary of Kable King Customer Segment
$50,000 -
$75,000
$80,000 -
$100,000
$90,000 -
$115,000
$95,000 -
$125,000
$70,000 -
$85,000
$80,000 -
$95,000
654
716
802 813 816
2010 2011 2012 2013 2014
Kable King Number of Customers (in 10,000s)
Number of Customers (in 10,000s)
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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KABLE KING DIRECT COMPETITORS
TV TOWN
A Cable Company that offers a majority of channels but with a focus on around the clock TV shows and
reruns
Product Portfolio
Product
Offering*
Description Price Cost
Basic Channel
Package (BCP)
10 Channels $12/month $10/month
Basic PLUS
(BCP+)
25 Channels $17/month $15/month
0
10
20
30
40
50
60
70
80
90
100
2010 2011 2012 2013 2014
Customer Satisfaction 2010 - 2014 (in %)
Kable King TV Town Cinemagic eStream
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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Advanced
Channel
Package (ACP)
40 Channels $25/month $20/month
Advanced PLUS
(ACP+)
55 Channels $35/month $25/month
Hyper Channel
Package (HCP)
100 Channels $50/month $40/month
Hyper PLUS
(HCP+)
100 + Individual
Channels may be
purchased (on
average, 10 extra
channels are
purchases)
$55/month + $2/month
for each additional
channel purchased
$40/month + $1/month
for each additional
channel
Installation &
Maintenance
(I & M)
TV Town will install
your “TVBox” and
will service it
$30 for Installation
(onetime fee); $60 for
Maintenance/visit (on
average)
$10 for Installation (One
time cost); $45 cost for
maintenance/visit (on
average)
Promo Space
(PS)
Companies may buy
space on “TVBoxes”
to advertise
$150 per TVBox $50 cost per TVBox
*All products are sold online through the company website, www.tvtown.com except for I & M (which is
sold online but installed in person)
*Products offered by Kable King and TV Town are essentially the same; prices are the only traits that vary
between the two companies*
UCC CASE COMPETITION – COMPETITION GUIDE 2015
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Customer Segments
Customer Segments
Young
Households
Young
Household +
Children
Older
Household
Older
Household +
Children
Seniors
Seniors +
Children
Abbreviation
YH YH + C OH OH + C S S + C
Segment Description
Head of
Household is
between 18 - 35
Head of
Household is
between 18 – 35
with Children
ages 1 - 17
Head of
Household is
between 36 - 65
Head of
Household is
between 36 –
65 with Children
ages 1 - 17
Head of
Household is
older than 66
Head of
Household is
older than 66
with Children
ages 1 - 17
Top 5 Channels Watched (in no particular order)
6. Travel
7. Food
Network
8. ESPN
9. CW
10. NBC
6. Disney
7. Lifetime
8. Nickelodeon
9. QVC
10. NFL
6. CNBC
7. TNT
8. TBS
9. NBA
10. FOX
6. CNBC
7. FOX
8. Food
Network
9. NBC
10. AMC
6. CNN
7. Food
Network
8. History
9. AMC
10. NATGEO
6. CNN
7. CBS
8. BBC
9. A&E
10. Food
Network
Average Salary of TV Town Customer Segment
$50,000 -
$75,000
$80,000 -
$100,000
$100,000 -
$135,000
$95,000 -
$125,000
$70,000 -
$85,000
$80,000 -
$95,000
17%
24%
33%
19%
3%4%
TV Town Customer Segmentation
YH
YH + C
OH
OH + C
S
S + C
UCC CASE COMPETITION – COMPETITION GUIDE 2015
20
eSTREAM
A company that is very similar to the other 3 “Cable Giants” but has since acquired a smaller firm, gaining
the ability to stream certain movies over the internet
Product
Offering*
Description Price Cost
Basic Channel
Package (BCP)
10 Channels $35/month $10/month
Basic PLUS
(BCP+)
25 Channels $45/month $15/month
Advanced
Channel
Package (ACP)
40 Channels $55/month $20/month
Advanced PLUS
(ACP+)
55 Channels $65/month $25/month
Hyper Channel
Package (HCP)
100 Channels $85/month $40/month
831
845
875
889
897
2010 2011 2012 2013 2014
TV Town Number of Customers (in 10,000s)
Number of Customers (in 10,000s)
UCC CASE COMPETITION – COMPETITION GUIDE 2015
21
Hyper PLUS
(HCP+)
100 + Individual
Channels may be
purchased (on
average, 10 extra
channels are
purchases)
$85/month + $2/month
for each additional
channel purchased
$40/month + $1/month
for each additional
channel
Installation &
Maintenance
(I & M)
eStream will install
your “eBox” and will
service it
$50 for Installation
(onetime fee); $70 for
Maintenance/visit (on
average)
$10 for Installation (One
time cost); $45 cost for
maintenance/visit (on
average)
Promo Space
(PS)
Companies may buy
space on “eBoxes” to
advertise
$200 per eBox $50 cost per eBox
*All products are sold online through the company website, www.estream.com, except for I & M
(which is sold online but installed in person)
** Products offered by Kable King and eStream are essentially the same; prices are the only traits that vary
between the two companies*
***eStream offers in its HCP+ package the option to watch certain movies offered in its lineup online
through the Internet. This technology was gained as eStream acquired PhutureTech, a small tech company
focused on alternative media, in 2010***
Customer Segments
UCC CASE COMPETITION – COMPETITION GUIDE 2015
22
Customer Segments
Young
Households
Young
Household +
Children
Older
Household
Older
Household +
Children
Seniors
Seniors +
Children
Abbreviation
YH YH + C OH OH + C S S + C
Segment Description
Head of
Household is
between 18 - 35
Head of
Household is
between 18 – 35
with Children
ages 1 - 17
Head of
Household is
between 36 - 65
Head of
Household is
between 36 –
65 with Children
ages 1 - 17
Head of
Household is
older than 66
Head of
Household is
older than 66
with Children
ages 1 - 17
Top 5 Channels Watched (in no particular order)
11. Travel
12. Food
Network
13. ESPN
14. CW
15. NBC
11. Disney
12. Lifetime
13. Nickelodeon
14. QVC
15. NFL
11. CNBC
12. TNT
13. TBS
14. NBA
15. FOX
11. CNBC
12. FOX
13. Food
Network
14. NBC
15. AMC
11. CNN
12. Food
Network
13. History
14. AMC
15. NATGEO
11. CNN
12. CBS
13. BBC
14. A&E
15. Food
Network
Average Salary of eStream Customer Segment
$50,000 -
$75,000
$80,000 -
$100,000
$90,000 -
$115,000
$95,000 -
$125,000
$70,000 -
$85,000
$80,000 -
$95,000
45%
27%
17%
9%
2%
eStream Customer Segmentation
YH
YH + C
OH
OH + C
S
UCC CASE COMPETITION – COMPETITION GUIDE 2015
23
CINEMAGIC
A cable company that has a predilection for offering HD movie channels of many different genres
Product
Offering*
Description Price Cost
Basic Channel
Package (BCP)
10 Channels $17/month $10/month
Basic PLUS
(BCP+)
25 Channels $22/month $15/month
Advanced
Channel
Package (ACP)
40 Channels $27/month $20/month
Advanced PLUS
(ACP+)
55 Channels $36/month $25/month
Hyper Channel
Package (HCP)
100 Channels $65/month $40/month
821
879
932 958
1034
2010 2011 2012 2013 2014
eStream Number of Customers (in 10,000s)
Number of Customers (in 10,000s)
UCC CASE COMPETITION – COMPETITION GUIDE 2015
24
Hyper PLUS
(HCP+)
100 + Individual
Channels may be
purchased (on
average, 10 extra
channels are
purchases)
$75/month + $2/month
for each additional
channel purchased
$40/month + $1/month
for each additional
channel
Installation &
Maintenance
(I & M)
Cinemagic will install
your “CineBox” and
will service it
$80 for Installation
(onetime fee); $65 for
Maintenance/visit (on
average)
$10 for Installation (One
time cost); $45 cost for
maintenance/visit (on
average)
Promo Space
(PS)
Companies may buy
space on “CineBoxes”
to advertise
$175 per CineBox $50 cost per CineBox
*All products are sold online through the company website, www.cinemagic.com, except for I &
M (which is sold online but installed in person)
** Products offered by Kable King and Cinemagic are essentially the same; prices are the only traits that
vary between the two companies **
-
17%
27%
35%
12%
3%
6%
Cinemagic Customer Segmentation
YH
YH + C
OH
OH + C
S
S + C
UCC CASE COMPETITION – COMPETITION GUIDE 2015
25
Customer Segments
Young
Households
Young
Household +
Children
Older
Household
Older
Household +
Children
Seniors
Seniors +
Children
Abbreviation
YH YH + C OH OH + C S S + C
Segment Description
Head of
Household is
between 18 - 35
Head of
Household is
between 18 – 35
with Children
ages 1 - 17
Head of
Household is
between 36 - 65
Head of
Household is
between 36 –
65 with Children
ages 1 - 17
Head of
Household is
older than 66
Head of
Household is
older than 66
with Children
ages 1 - 17
Top 5 Channels Watched (in no particular order)
16. Travel
17. Food
Network
18. ESPN
19. CW
20. NBC
16. Disney
17. Lifetime
18. Nickelodeon
19. QVC
20. NFL
16. CNBC
17. TNT
18. TBS
19. NBA
20. FOX
16. CNBC
17. FOX
18. Food
Network
19. NBC
20. AMC
16. CNN
17. Food
Network
18. History
19. AMC
20. NATGEO
16. CNN
17. CBS
18. BBC
19. A&E
20. Food
Network
Average Salary of Cinemagic Customer Segment
$50,000 -
$75,000
$80,000 -
$100,000
$90,000 -
$115,000
$95,000 -
$125,000
$70,000 -
$85,000
$80,000 -
$95,000
741
776
803
826
845
2010 2011 2012 2013 2014
Cinemagic Number of Customers (in 10,000s)
Number of Customers (in 10,000s)

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UCC Case Competition Guide 2015

  • 1. 2015 UNDERGRADUATE CONSULTING CLUB (UCC) CASE COMPETITION COMPETITION GUIDE
  • 2. UCC CASE COMPETITION – COMPETITION GUIDE 2015 2 WELCOME Welcome to the 2015 UCC Case Competition at the University of Minnesota. We are delighted to see such dynamic and diverse future global leaders participating this year. The case competition is designed to enrich and challenge your creativity, analytic and problem solving skills and help prepare you for a career in today’s rapidly changing business environment. We encourage you to take full advantage of this opportunity to dive in, connect and learn. We look forward to hearing your ideas and seeing your presentation. Good luck, Sibi Murugesan (Vice President, Case Study Author) & the UCC Executive Board
  • 3. UCC CASE COMPETITION – COMPETITION GUIDE 2015 3 RULES AND RESOURCES The following information is provided to help all participants have a positive and productive experience throughout the entire case competition. RULES  The case may not be shared or distributed to anyone outside of the competition at any time.  Teams will have about 3 days (85 hours) to work on the case.  Each team will receive electronic copy of the Competition Guide  Students may not receive help from any professors or faculty members. All work presented must be the work of solely the participating team members.  Only competition staff and judges may attend the presentations.  Teams who have not yet presented will not be able to view other teams’ presentations. QUESTION PROTOCOL Any questions regarding the case and/or competition logistics should be sent to murug003@umn.edu with the subject line of “2015 UCC Case Competition Question.” While teams are allowed to reach out with data related questions, requests seeking guidance on analytic process or final recommendations/opportunity will not be able to be addressed. When submitting a question, please include your team’s name. Questions will be addressed between 4-5 pm daily on Wednesday and Friday. Questions for Thursday will be answered in person at the Q&A session on 4/16 in CSOM 2-231 from 5:30 pm – 6:30 pm. All answers will be emailed to team captains. This is meeting is not required to attend. FINAL DELIVERABLE  Teams may submit only one final presentation to the judges  The presentation must be in Microsoft PowerPoint, with printed handouts for judges  The presentation must be in English  Final PowerPoints must be e-mailed to ugcc@gmail.com by 8 AM on Saturday 4/18/2015. SUPPLIES We will project your presentation for you. Please put your presentation on the flash drive.
  • 4. UCC CASE COMPETITION – COMPETITION GUIDE 2015 4 PRIZES  FIRST PLACE: $2,000 for the team  SECOND PLACE: $500 for the team  THIRD PLACE: $250 for the team CASE COMPETITION DAY SCHEDULE Saturday April 18th, 2015 Below is a preliminary schedule of events for the day of competition. Please note that all times are tentative and may be subject to change. The UCC will notify all team captains of any changes made. 8:00 AM - Teams submit final version of power point to murug003@umn.edu 9:00 AM - Judges arrive to Carlson; Judges' Briefing 9:30 AM - Preliminary presentations begin 12:00 PM - Lunch is catered 1:00 PM - Preliminary Presentations resume 3:00 PM - Final Presentations begin 4:00 PM - Announcement of winners; informal networking
  • 5. UCC CASE COMPETITION – COMPETITION GUIDE 2015 5 DAY OF COMPETITION LOGISTICS Important Notes  The day of the competition, students will report to CSOM L-126 at least 10 minutes prior to their assigned presentation time  Each team will prepare and distribute printed handouts of presentation slides to all 7 judges  Each team will save their PowerPoint on a flash drive  Teams are not permitted to revise their slides at any point after the 8AM submission.  Each round will run as follows: o 5 Minutes: Presentation set up o 10 Minutes: Uninterrupted presentation o 10 Minutes: Q&A DAY OF COMPETITION ROOMS & LOCATIONS All case competition rooms will be located in the Carlson School of Management on West Bank, adjacent to Hansen Hall. CSOM L -126 – UCC Case Competition Base; Team Check In; Team “Locker” Room CSOM 1-143 – Preliminary Round Location CSOM 2-224 – Final Round Location
  • 6. UCC CASE COMPETITION – COMPETITION GUIDE 2015 6 JUDGING/SCORING Rubric Judges will evaluate teams on the following 115-point scale. Introduction, Identification of Business Issue and Research Objective (15 points) · Analysis of Kable King & cable/TV industry · Clearly defined business issue Specific, actionable and critical research objectives, stated as questions Analysis (20 points) · Strategic orientation and focus · Insightful, critical Information to report vs nice to know Interpreting the Data (15 points) · Use of qualitative (primary research) and quantitative (UCC) data · Ability to mine the data and derive actionable insights · Creativity, thoughtfulness and validity of data points/output Final Recommendation and Opportunity (20 points) · Evaluation of feasible recommendation and opportunity (quantified) · Realism and practicality of recommendation and opportunity · Justification of recommendation and opportunity · Strategic orientation and focus · Logical tie-in to analysis Organization of Material and Overall Presentation (35 points) · Ability to defend position · Clarity and style of presentation · Polished deck telling a clear story · Slide progression (each slide builds on the previous slide) · Delivery · Smoothness and balance of work, teamwork Questions and Answers (10 points) · Presentation style, communication skills · Creativity · Professionalism · Use of Time
  • 7. UCC CASE COMPETITION – COMPETITION GUIDE 2015 7 HOW TO APPROACH THE CASE Tips & Suggestions There is no prescribed method for dividing the work of preparing the case analysis. One approach is detailed below, but teams are encouraged to work through the case using the method that best fits members’ strengths and preferences. DIVIDING THE WORK Each team member should have a role; it is the team captain’s responsibility to guide the team in defining & assigning work. One approach might include defining roles based on the judging criteria: 1. Introduction, Identification of Business Issue and Research Objectives: Greet the audience; provide a comprehensive overview of the situation, complication and key issues to be addressed 2. Analysis: Teams should have a fundamental understanding of Kable King’s business/product offerings, competitive landscape and current category/snacking category performance. The analysis should tie back to the research objectives and be insightful. The analysis should evaluate both external and internal factors. A SWOT analysis is one way participants could review the organization. 3. Recommendation and Opportunity: Normally, teams should analyze two to three alternatives. The recommended alternative should address the key issues and solve the problem stated. 4. Business Case: Teams should justify why their recommendation is the optimal solution and outline key benefits to Kable King. 5. Final Recommendation and Opportunity: The recommended plan of action must be realistic, practical and attainable. It should tie back to the research objectives and be supported throughout the duration of the analysis. 6. Conclusion: Teams should conclude their presentation with a summary of key points and then open the floor to questions from the judges. PRESENTING Prior to presenting, the team should designate a member or members to change slides. There should be balance and flow between presenters. Practicing these transitions can be as important as the presentation itself. Sloppy or awkward transitions are distracting and show a lack of preparation to the judges. When entering the presentation room, team members should introduce themselves to the judges and quickly take their positions. We highly encourage all team members to present the case and answer questions.
  • 8. UCC CASE COMPETITION – COMPETITION GUIDE 2015 8 QUESTION PERIOD When the team has completed the presentation, all members should stand and wait for the judges to begin the question period. When a judge asks a question, be careful that several team members do not jump in to answer. Team members should discuss prior to the presentation who will answer certain categories of questions. If the question is unclear, ask for clarification before trying to present an answer. After a team member has answered a question, a follow up answer should only be given by another member of the team if it will add value to what was already said. Teams must also ensure that they do not contradict one another while answering questions. Many times judges will tell teams they do not agree at all with the solution presented. When this occurs, becoming confrontational will only hurt the team. It is at this time when confidence in the solution pays off. Teams should support their answers by revisiting the facts they presented and assuring the judge that the chosen plan is the optimal solution to the problem. Teams should also pay attention to the body language of the judges. When a judge begins to nod their head in agreement or present other similar language, the person answering the question should wrap up and allow for the next question to be asked. The objective is to efficiently answer questions in the 10- minute period. ATTIRE It is important to dress professionally while participating in the competition. Business professional attire is suggested. It is important that team members not only wear professional clothing, but that they are comfortable in their attire. THE FIRST PRESENTATION If this is your first case competition, you may be understandably nervous about the challenging and fast paced day. Each team can get off to a good start by having a game plan prior to leaving for the competition. Sometimes the excitement and adrenaline of competing can lead teams to become disorganized and unfocused. Communication is the key component that will allow teams to stay on track and complete the presentation to the best of their abilities. Communicating key information such as time remaining, potential roadblocks or new information will help all members fully prepare for the presentation and work as a strong unit. The most important thing to remember about presenting is to leave the outcome in the presentation room. Premature celebration or feelings of doubt may cause teams to lose sight of their strategies and not succeed in the competition. Whether teams win or lose, work well or poorly together, every participant will gain valuable experience from the competition.
  • 9. UCC CASE COMPETITION – COMPETITION GUIDE 2015 9 2015 UCC CASE COMPETITION CASE STUDY
  • 10. UCC CASE COMPETITION – COMPETITION GUIDE 2015 10 THE BIG QUESTION What role does Kable King’s current cable portfolio play in the cable/TV world to differentiate themselves from competitors and where should they plan to innovate in the future? SITUATION Facing stagnant growth in their base cable business, Kable King is looking for a new avenue for growth. It’s no longer about inventing the next big cable package but coming up with the next big TV idea. COMPLICATION Your client, Kable King, is one of four cable giants in the US market. The four giants all are very similar in product offerings. Kable King wants to differentiate itself from the other companies now and in the future and is looking for advice on how to make that happen. KEY QUESTIONS TO CONSIDER What role does Kable King’s current cable portfolio play in the cable/TV world and where should they plan to innovate in the future? As you develop your answer, be sure to take account of the following considerations:  Customer Segment Expansion  Key TV Trends  TV Innovations  “Make Your Cable Bundle” Options  Demographic Impact - Kids/Millennials/Seniors  The Influence of Changing Media  Any other key area of primary research (Student discretion) CASE OPPORTUNITY Teams should work together to establish the business rationale and outline key elements of a strategic plan to help Kable King “win” in the TV world. The analysis should explore all, yet should not be limited to, the key questions outlined above. Once a recommendation is formed, teams then need to formulate a compelling business and execution/activation plan. KEY DELIVERABLE 1. Establish the business issue: determine what it is you want to accomplish with your analysis. Your goal is to clearly define the issue and the specific results to be achieved. This critical first step of establishing a clear understanding of the business issue will guide you throughout the duration of the analysis, further allowing you to:  Identify specific research objectives  Establish your role in developing an analysis that will lead to actionable recommendations  Provide a means for quantifying an opportunity
  • 11. UCC CASE COMPETITION – COMPETITION GUIDE 2015 11 2. Develop analysis: mine the data, highlight key implications and craft a business case with specific rationales for your recommendations. Your analysis is the basis of the client deliverable and provides answers in a logical flow. Suggestions to keep in mind as you begin telling your story:  Ask yourself what information is critical to report to the client vs. nice to know  Each slide needs to build upon the previous slide – one way of knowing if your story flows is by reading the headings on the slides; do they flow from page to page? If not, there may be something missing, or there may be too much! 3. Finalize analysis, provide recommendations and quantify the opportunity: identify and advise on possible courses of action for addressing the business issue. Ensure recommendations link back to the client’s research objectives and tell them to do something to improve their business. Ensure recommendations are:  Relevant and feasible  Linked to the research objectives, the client’s business issue and strategic priorities  Supported by the analysis and insights  Active not passive  Quantifying an opportunity  Providing next steps
  • 12. UCC CASE COMPETITION – COMPETITION GUIDE 2015 12 COMPANY BACKGROUND In 1957, George Kable had a dream. He had been addicted to TV ever since he started watching cable back in college. He loved it so much that he dreamt of creating his own company to give excellent cable TV to millions across the country. He took all of the money he had saved for graduate school and used it to create his own company: Kable King. Fast forward a decade and Kable King was booming. After its humble beginnings in rural Minnesota, it had now expanded across the country, operating in New York, Los Angeles, Chicago and everywhere in between. Kable King was essentially the only cable company in the US, raking in millions of dollars in profit and giving excellent service to loyal customers. It seemed that Kable had definitely become king. Fast forward another two decades in the cable industry. The entrance of three almost simultaneous new players threatened the existence of Kable King. Each of the three new players ate huge chunks of Kable King’s market. TV Town gained large market share in the West Coast market while Cinemagic captured the East Coast. eStream took over the Southern market, leaving Kable King to function as the market leader in only the Midwest market. George Kable’s dream seemed shattered. Over the next decade, through creative marketing campaigns, increased customer service and better products, Kable King fought tooth and nail in every segment to regain lost market share. But they were not able to regain their status as “the king of cable.” Now, all four “Kable Giants” hold essentially the same market share in all 4 markets. Their product offerings are very similar as are the prices. Every now and again, a company might spike forward in market share due to a marketing campaign or a new promotion but on the whole, the four are very comparable. This has frustrated George Kable. He is tired of being “a part of the herd.” He wants to reestablish his company as the premiere cable company and return to the glory days. He has hired your firm to help solve this issue. CURRENT STRATEGY OF KABLE KING In 2000, Kable King launched its overall strategy program named “Excellence in Every Channel.” The main goals of this new program were to return Kable King to focusing on the customer, through enhancing the ability to enjoy more quality channels/programming at lower costs, improving its public reputation and making TV watching as seamless as possible. The future is expected to bring increased digitalization of all links in the value chain and higher levels of personalization.
  • 13. UCC CASE COMPETITION – COMPETITION GUIDE 2015 13 KABLE KING Product Portfolio 74% 16% 10% % of Revenue Breakdown Cable Packages Installation & Maintenance Promo Space 114 73 126 56 32 52 0.9 0.04 116 77 152 64 30 101 0.7 0.05 120 83 145 65 27 158 0.7 0.02 BC P BC P + A C P A C P + H C P H C P + I & M P S YEARLY NEW CABLE PACKAGE SALES (IN 100s) 2012 2013 2014
  • 14. UCC CASE COMPETITION – COMPETITION GUIDE 2015 14 Product Offering Description Price Cost Basic Channel Package (BCP) 10 Channels $30/month $10/month Basic PLUS (BCP+) 25 Channels $40/month $15/month Advanced Channel Package (ACP) 40 Channels $55/month $20/month Advanced PLUS (ACP+) 55 Channels $65/month $25/month Hyper Channel Package (HCP) 100 Channels $75/month $40/month Hyper PLUS (HCP+) 100 + Individual Channels may be purchased (on average, 10 extra channels are purchases) $65/month + $2/month for each additional channel purchased $40/month + $1/month for each additional channel Installation & Maintenance (I & M) Kable King will install your “KableBox” and will service it $100 for Installation (onetime fee); $70 for Maintenance/visit (on average) $10 for Installation (One time cost); $45 cost for maintenance/visit (on average) Promo Space (PS) Companies may buy space on “KableBoxes” to advertise $250 per KableBox $50 cost per KableBox *All products are sold online through the company website, www.kableking.net, except for I & M (which is sold online but installed in person)
  • 15. UCC CASE COMPETITION – COMPETITION GUIDE 2015 15 Experience as a Customer *Sample size: 5,000 randomly selected customers of the top 4 Cable Market Leaders 10% 12% 37% 41% % Ranked as Top Driver of Satisfaction (2014) Quality programming Quantity of channels Affordable packages Personalization to preferences 17% 27% 35% 12% 3% 6% Kable King Customer Segmentation YH YH + C OH OH + C S S + C
  • 16. UCC CASE COMPETITION – COMPETITION GUIDE 2015 16 Customer Segments Young Households Young Household + Children Older Household Older Household + Children Seniors Seniors + Children Abbreviation YH YH + C OH OH + C S S + C Segment Description Head of Household is between 18 - 35 Head of Household is between 18 – 35 with Children ages 1 - 17 Head of Household is between 36 - 65 Head of Household is between 36 – 65 with Children ages 1 - 17 Head of Household is older than 66 Head of Household is older than 66 with Children ages 1 - 17 Top Channels Watched (in no particular order) 1. Travel 2. Food Network 3. ESPN 4. CW 5. NBC 1. Disney 2. Lifetime 3. Nickelodeon 4. QVC 5. NFL 1. CNBC 2. TNT 3. TBS 4. NBA 5. FOX 1. CNBC 2. FOX 3. Food Network 4. NBC 5. AMC 1. CNN 2. Food Network 3. History 4. AMC 5. NATGEO 1. CNN 2. CBS 3. BBC 4. A&E 5. Food Network Average Salary of Kable King Customer Segment $50,000 - $75,000 $80,000 - $100,000 $90,000 - $115,000 $95,000 - $125,000 $70,000 - $85,000 $80,000 - $95,000 654 716 802 813 816 2010 2011 2012 2013 2014 Kable King Number of Customers (in 10,000s) Number of Customers (in 10,000s)
  • 17. UCC CASE COMPETITION – COMPETITION GUIDE 2015 17 KABLE KING DIRECT COMPETITORS TV TOWN A Cable Company that offers a majority of channels but with a focus on around the clock TV shows and reruns Product Portfolio Product Offering* Description Price Cost Basic Channel Package (BCP) 10 Channels $12/month $10/month Basic PLUS (BCP+) 25 Channels $17/month $15/month 0 10 20 30 40 50 60 70 80 90 100 2010 2011 2012 2013 2014 Customer Satisfaction 2010 - 2014 (in %) Kable King TV Town Cinemagic eStream
  • 18. UCC CASE COMPETITION – COMPETITION GUIDE 2015 18 Advanced Channel Package (ACP) 40 Channels $25/month $20/month Advanced PLUS (ACP+) 55 Channels $35/month $25/month Hyper Channel Package (HCP) 100 Channels $50/month $40/month Hyper PLUS (HCP+) 100 + Individual Channels may be purchased (on average, 10 extra channels are purchases) $55/month + $2/month for each additional channel purchased $40/month + $1/month for each additional channel Installation & Maintenance (I & M) TV Town will install your “TVBox” and will service it $30 for Installation (onetime fee); $60 for Maintenance/visit (on average) $10 for Installation (One time cost); $45 cost for maintenance/visit (on average) Promo Space (PS) Companies may buy space on “TVBoxes” to advertise $150 per TVBox $50 cost per TVBox *All products are sold online through the company website, www.tvtown.com except for I & M (which is sold online but installed in person) *Products offered by Kable King and TV Town are essentially the same; prices are the only traits that vary between the two companies*
  • 19. UCC CASE COMPETITION – COMPETITION GUIDE 2015 19 Customer Segments Customer Segments Young Households Young Household + Children Older Household Older Household + Children Seniors Seniors + Children Abbreviation YH YH + C OH OH + C S S + C Segment Description Head of Household is between 18 - 35 Head of Household is between 18 – 35 with Children ages 1 - 17 Head of Household is between 36 - 65 Head of Household is between 36 – 65 with Children ages 1 - 17 Head of Household is older than 66 Head of Household is older than 66 with Children ages 1 - 17 Top 5 Channels Watched (in no particular order) 6. Travel 7. Food Network 8. ESPN 9. CW 10. NBC 6. Disney 7. Lifetime 8. Nickelodeon 9. QVC 10. NFL 6. CNBC 7. TNT 8. TBS 9. NBA 10. FOX 6. CNBC 7. FOX 8. Food Network 9. NBC 10. AMC 6. CNN 7. Food Network 8. History 9. AMC 10. NATGEO 6. CNN 7. CBS 8. BBC 9. A&E 10. Food Network Average Salary of TV Town Customer Segment $50,000 - $75,000 $80,000 - $100,000 $100,000 - $135,000 $95,000 - $125,000 $70,000 - $85,000 $80,000 - $95,000 17% 24% 33% 19% 3%4% TV Town Customer Segmentation YH YH + C OH OH + C S S + C
  • 20. UCC CASE COMPETITION – COMPETITION GUIDE 2015 20 eSTREAM A company that is very similar to the other 3 “Cable Giants” but has since acquired a smaller firm, gaining the ability to stream certain movies over the internet Product Offering* Description Price Cost Basic Channel Package (BCP) 10 Channels $35/month $10/month Basic PLUS (BCP+) 25 Channels $45/month $15/month Advanced Channel Package (ACP) 40 Channels $55/month $20/month Advanced PLUS (ACP+) 55 Channels $65/month $25/month Hyper Channel Package (HCP) 100 Channels $85/month $40/month 831 845 875 889 897 2010 2011 2012 2013 2014 TV Town Number of Customers (in 10,000s) Number of Customers (in 10,000s)
  • 21. UCC CASE COMPETITION – COMPETITION GUIDE 2015 21 Hyper PLUS (HCP+) 100 + Individual Channels may be purchased (on average, 10 extra channels are purchases) $85/month + $2/month for each additional channel purchased $40/month + $1/month for each additional channel Installation & Maintenance (I & M) eStream will install your “eBox” and will service it $50 for Installation (onetime fee); $70 for Maintenance/visit (on average) $10 for Installation (One time cost); $45 cost for maintenance/visit (on average) Promo Space (PS) Companies may buy space on “eBoxes” to advertise $200 per eBox $50 cost per eBox *All products are sold online through the company website, www.estream.com, except for I & M (which is sold online but installed in person) ** Products offered by Kable King and eStream are essentially the same; prices are the only traits that vary between the two companies* ***eStream offers in its HCP+ package the option to watch certain movies offered in its lineup online through the Internet. This technology was gained as eStream acquired PhutureTech, a small tech company focused on alternative media, in 2010*** Customer Segments
  • 22. UCC CASE COMPETITION – COMPETITION GUIDE 2015 22 Customer Segments Young Households Young Household + Children Older Household Older Household + Children Seniors Seniors + Children Abbreviation YH YH + C OH OH + C S S + C Segment Description Head of Household is between 18 - 35 Head of Household is between 18 – 35 with Children ages 1 - 17 Head of Household is between 36 - 65 Head of Household is between 36 – 65 with Children ages 1 - 17 Head of Household is older than 66 Head of Household is older than 66 with Children ages 1 - 17 Top 5 Channels Watched (in no particular order) 11. Travel 12. Food Network 13. ESPN 14. CW 15. NBC 11. Disney 12. Lifetime 13. Nickelodeon 14. QVC 15. NFL 11. CNBC 12. TNT 13. TBS 14. NBA 15. FOX 11. CNBC 12. FOX 13. Food Network 14. NBC 15. AMC 11. CNN 12. Food Network 13. History 14. AMC 15. NATGEO 11. CNN 12. CBS 13. BBC 14. A&E 15. Food Network Average Salary of eStream Customer Segment $50,000 - $75,000 $80,000 - $100,000 $90,000 - $115,000 $95,000 - $125,000 $70,000 - $85,000 $80,000 - $95,000 45% 27% 17% 9% 2% eStream Customer Segmentation YH YH + C OH OH + C S
  • 23. UCC CASE COMPETITION – COMPETITION GUIDE 2015 23 CINEMAGIC A cable company that has a predilection for offering HD movie channels of many different genres Product Offering* Description Price Cost Basic Channel Package (BCP) 10 Channels $17/month $10/month Basic PLUS (BCP+) 25 Channels $22/month $15/month Advanced Channel Package (ACP) 40 Channels $27/month $20/month Advanced PLUS (ACP+) 55 Channels $36/month $25/month Hyper Channel Package (HCP) 100 Channels $65/month $40/month 821 879 932 958 1034 2010 2011 2012 2013 2014 eStream Number of Customers (in 10,000s) Number of Customers (in 10,000s)
  • 24. UCC CASE COMPETITION – COMPETITION GUIDE 2015 24 Hyper PLUS (HCP+) 100 + Individual Channels may be purchased (on average, 10 extra channels are purchases) $75/month + $2/month for each additional channel purchased $40/month + $1/month for each additional channel Installation & Maintenance (I & M) Cinemagic will install your “CineBox” and will service it $80 for Installation (onetime fee); $65 for Maintenance/visit (on average) $10 for Installation (One time cost); $45 cost for maintenance/visit (on average) Promo Space (PS) Companies may buy space on “CineBoxes” to advertise $175 per CineBox $50 cost per CineBox *All products are sold online through the company website, www.cinemagic.com, except for I & M (which is sold online but installed in person) ** Products offered by Kable King and Cinemagic are essentially the same; prices are the only traits that vary between the two companies ** - 17% 27% 35% 12% 3% 6% Cinemagic Customer Segmentation YH YH + C OH OH + C S S + C
  • 25. UCC CASE COMPETITION – COMPETITION GUIDE 2015 25 Customer Segments Young Households Young Household + Children Older Household Older Household + Children Seniors Seniors + Children Abbreviation YH YH + C OH OH + C S S + C Segment Description Head of Household is between 18 - 35 Head of Household is between 18 – 35 with Children ages 1 - 17 Head of Household is between 36 - 65 Head of Household is between 36 – 65 with Children ages 1 - 17 Head of Household is older than 66 Head of Household is older than 66 with Children ages 1 - 17 Top 5 Channels Watched (in no particular order) 16. Travel 17. Food Network 18. ESPN 19. CW 20. NBC 16. Disney 17. Lifetime 18. Nickelodeon 19. QVC 20. NFL 16. CNBC 17. TNT 18. TBS 19. NBA 20. FOX 16. CNBC 17. FOX 18. Food Network 19. NBC 20. AMC 16. CNN 17. Food Network 18. History 19. AMC 20. NATGEO 16. CNN 17. CBS 18. BBC 19. A&E 20. Food Network Average Salary of Cinemagic Customer Segment $50,000 - $75,000 $80,000 - $100,000 $90,000 - $115,000 $95,000 - $125,000 $70,000 - $85,000 $80,000 - $95,000 741 776 803 826 845 2010 2011 2012 2013 2014 Cinemagic Number of Customers (in 10,000s) Number of Customers (in 10,000s)