Professional Documents
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Marketing Case Studies
Marketing Case Studies
Aim: increase the company’s sales and profits in the highly competitive Ontario seed corn
market.
Evaluation of the strategy of increasing company’s share of the market for silage corn seed.
Ontario context
Difference in the number of acres planted to grain and silage corn in Ontario:
- Grain corn: 2,100,000 acres harvested
- Silage: 500,000 acres harvested
Pioneer will continue to maintain the highest a dominant position in the market and the
small ones will change only as a result of mergers and acquisition
Opportunities of grain:
- Larger size market
- Relatively simpler performances to access
Threats for silage
- Lower prices
- Require additional resources for promotion
- Does not enter in commercial markets
Segmentation
In order to introduce the silage strategy we decided to do a segmentation of the market in 4
main categories of farmers:
1. Sophisticated
2. Transition +
Segment 1 and 2 are homogenous, measurable, accessible, differentiable, substantial (10%
and 45% market size), compatible, long-lasting, actionable.
3. Traditional
4. Transition –
Considering that:
- Agro Seed has an advantage in terms of new variety (high TDN which could be
confirmed by Ontario Corn Committee)
- The first two segments are seeking for new technologies, highly productive
varieties based on scientific evidence-based source of information and are
experts with the technological know-how
WE TARGETED SEGMENT 1 AND 2 FOR SILAGE STRATEGY
RESEARCH PHASE(evidences)
Based on this evidences and from other investigation the final choiche of the brand
positioning was between 2 main paths:
● Family connection: “Family and friends around the table with good food, sharing
and enjoying themselves and each other, is what good living is all about. Everybody
loves Italian sausage and the meal it makes – and she is the magnet that pulls
everyone in”
○ For FHH, women who love to donate meaningful moments to their families
with a quick, tasty and traditional meal. Delicious Italian Sausage gives the
best memories around the table
● Clever cooking: “Using fresh, high-quality ingredients and making a recipe her own
way, she puts a little of herself into the meal. Italian sausage is so versatile it can be
used in a number of different ways and it always adds a little zest to her dishes.”
○ “For FHH,A delicious way to express your creativity with original meals
everyone is sure to love.”
Main issue / question of the case: What is Wilhem's final decision? Does he change
suppliers or not?
Answer: We assume he changed supplier. The trigger point relies on the fact that Jim Sellers
did not stop by Wilhelm's house to say hi, which led the farmer to think Jim has no interest
for him. Key aspects for this decision are: the supplier’s proximity, product freshness,
recommendations from relatives and friends, and a colloquial approach from the salesman.
Prices must be competitive, or a traditional farmer will never move to your company, and you
must wait for the proper timing for the approach
Hints of the professor for the case: salesmen play a very important role, however it’s
crucial to make sure not to depend entirely on them. In fact, if we only depend on salesmen,
once they’re leaving the company we will lose our competitive advantage in approaching
traditional farmers.
Case study 4 - MOUNTAIN MAN
Main issue / question of the case: the company is facing a decline in sales ( -2% in
annual revenues.
-two visions for the future:
-Problems related to the launch of the light version: cannibalization, brand equity dilution,
customer alienation, bigger competitors to face, no space in big retailers
Answer:
Group proposals:
1. maintain status quo and face the decline
2. introduce light beer version
3. brand revitalization (new marketing strategy to promote better the lager version)
The company introduced a new lager beer to make the loyal consumer (blue collar) feel still
important for the company (strong flavor and high alcohol content). Later, the company
launched the light version of the beer but sold it in different areas than the previous one
(cities instead of rural states) in order to reach a new segment of consumers. Launching the
light version later, should avoid customer alienation.
Business description: As one of the big 6 candy producers in the world, strict government
regulations are affecting your brand as governments seek to increase taxes on products
depending on their sugar content as they believed this to be the underlying cause for obesity
due to unhealthy eating habits. On the other hand, your company with years of acquired
reputation, branding, and product diversification argues that a lifestyle change is the way to
go to address growing health concerns.
Main issue / question of the case: After an analysis of the industry and consumer
segments, what approach can your company take to address these unhealthy eating habits
in regards to candy and how will you align your approach to business, health and pleasure.
Would you:
1. Reformulate existing chocolate bars by reducing the sugar content to below nutrition
thresholds, without compromising actual or perceived taste
a. Use an existing product, new product, or brand extension
b. How should this be communicated?
2. Reduce product or portion sizes while minimizing negative reactions and how?
a. Reduce each unit or size along with prices?
b. How should this be communicated?
3. Nudge consumers towards healthier consumption without sounding patronizing and
how? Are there other benefits than health that could be used?
Hints of the professor for the case: The solution provided by the group did not address
the actual problem of global (not a niche) unhealthy eating habits as our solution targeted a
population segment that already cared about their diet. The appropriate approach was to
reduce portion size in terms of dimensions using consumer psychology. We can also
change communication about portion sizes e.g. advertising that the smaller portion sizes are
the required size for healthy consumption. Consumers can also be nudged using products
with colored layers in products e.g. a can of pringles with different colors. Another way to
nudge is through resealable packaging.
Case study 6 - TRUE EARTH
Business description: American firm specialized in the production of fresh pasta made by
whole grain. The high quality and healthiness of the products satisfied the new trend of
consumers to eat semi prepared products made with healthy and good quality products. This
group of products made Cucina Fresca, the product line of True Earth specialized in pasta,
successful and the main firm of the whole grain fresh pasta. LAUNCH OF A NEW
PRODUCT: Whole grain pizza. Why? It would be the first firm in the market, high market
value, 33% whole grain crust, to leverage the brand, fresher than frozen pizza and healthier
than take-out pizza and less investment required with respect to pasta. Inconveniences: it is
made with high quality and healthy products even if the product is considered by consumers
an indulgence product, competition with other pizza brands (no one in the whole grain
pizza).
Main issue / question of the case: Launch or not the whole grain pizza in the market, taking
in consideration that Rigazzi, main competitor, is also developing a similar product?
- The price should be too high for a product which is linked to a low willingness to pay
(average retail price is 12,38 while the willingness to pay, is high in the consumer's
test, and is concentrated between 6-8 and 10-12). The price is too close to the fresh
pizza.
- The concept of healthy food is difficult to associate with pizza / reducing the price the
huge players would become direct competitors.
Grocery shopping has been largely immune from digital disruption. Why did Webvan fail?
what about Peapod? Can Instacart be profitable? What are or could be the sources of
revenues and costs?
Answer:
- Instacart works without warehouses or distribution centers ( no fixed costs), but uses
freelance personal shoppers that go into existing grocery shops with consumers' grocery list,
and they shop from the site chosen by the customer and deliver the order. Most of the orders
placed in Instacart are delivered within an hour
- Delivery costs: First orders were free, 3,99$ for two-hour delivery, 5,99$ for
one-hour delivery; for both minimum order of 35$; Additionally: “Instacart
Express”: 99$ delivery membership per year for two-hours delivery over 35$
- The consumer can choose from a variety of different shops, but Instacart has a
partnership with some grocery shops where consumers can find special offers
and stable prices.
- The idea driving Instacart is to outsource the costs of warehousing and the cost of
transport because the shoppers use their own cars.
- But outsourcing is hardly immune to imitation, so Instacart worked a lot on the
efficiency of the delivery. Delivery relies on software tools and AI: optimization,
predictive analysis and dynamic incentive-setting to match demand and supply in
near real-time.
- Instacart can get revenues from the fees that the customer pays, a small
percentage of the revenues of partnered grocery shops, revenues from the
advertisement on the Instacart e-commerce and from the selling of generated
data.
- The generated data is the most important source for Instacart, a source of
revenue and are used in order to make the delivery system more efficient.
- The data generated are sold to the food industry in order to develop new products
or to the retail system to later extract the customer habits.
Marketing proposal:
à case study asked: to choose the target consumer, make a POPs & PODs analysis &
suggest a marketing mix plan for growing the business
● children and young people (<15-24 years) consumption of 18g (2 biscuits) per day, of
which 61% is consumed as a snack and 21% for breakfast
● Adults group (24-49 years) the daily consumption of biscuits is 9g per day of which
only 32% is consumed as a snack
- è We decided that our consumer target is the range from 18 to 35 years because
this target seems to be the greatest cookie lover in France, while on the
psychographic point of view we concentrated on people’s lifestyle, referring to
outgoing and unconventional people. main characteristics of our product:
medium-high quality. Cardboard boxes containing 6 sachets by 3 biscuits for total
120 g. introduce snack sachet with three biscuits each: 1 sachet with 3 biscuits of
the same flavour and 1 sachet with 3 different flavours
POPs
- cookie (sablè)
- snack
PODs
- above-average quality
- no mass production
- passion driven
- unique flavour
Pricing
à Our prices are above average prices thanks to the quality and authenticity of our brand. At
the same time, we are not a luxury brand neither in terms of the product nor terms of price.
Promotion
Unconventional marketing channel due to a low availability for advertising and marketing.
Distribution
- Café shops
- Library
- University bar
- Pop up stores
Management consideration:
1. How do you think to approach big retailers in order to sell your product like a
“premium” product?
2. How do you think to create a stable relationship with your customers? And which
point are you stressing to reach these goals?
3. Have you considered using your newsletter in order to make surveys among
customers?
4. Since there is a growing trend for organic and healthy food, why didn’t you choose to
follow this trend rather than supply a conventional product?
Case solution:
The relevant point of this case was to be coherent with the brand positioning chosen.
The French biscuit market is mature and very competitive, so we have to choose a
positioning to differentiate our brand: authenticity, high quality and irreverence permits us to
differentiate ourselves from the main competitors.
From this all the choices must be coherent with the positioning:
Target consumer: youngster (18-30) because they consume more than older people but
more importantly, they are closer to the values of our founder and for this reason a
community can be created.
Soregaroli’s comments:
- What can a multinational company not be: Can a multinational company can be
perceived as authentic (link to a lifestyle, everyday life)?
o This company here could better claim authenticity
o Direct link of managers of the company and link to the customers -> placing
your image on the package
- Same example: Ben and Jerrys Ice cream (old marketing video): “We make it all
better”
- Some real numbers of Michel et Augustin:
o Revenues increase to 55 million in 2018; but difficult to grow outside of
France; not so successful
o Now: 2019 Danone bought 95% of the shares
o Problem: scaling up the business, because the brand is so linked to the
business
à Real question: how do you compete with a giant? It’s possible, to find a niche and
become a national brand!