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Page 1: Case study 2

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  

Page 2: Case study 2

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  

Page 3: Case study 2

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  

Page 4: Case study 2

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  

Page 5: Case study 2

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  

Page 6: Case study 2

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.