CASE STUDY QUẢN TRỊ MARKETING MARKETING MANAGEMENT UFM

Pros of Nike’s core Marketing strategy: Nike put heavily proportion in their marketing strategies and products design.. In order to sustain their dominance in the industry and retain the

UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING

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CLASS: CLC_17DMA2

CASE STUDY FROM CHAPTER 1 TO CHAPTER 18

Lecturers: MBA Ngo Minh Trang

Group: 2

HCMC – April 2019

No Member Student’s code

1 Pham Quang Thuy 1721001634

2 Do Thanh Ngan 1721000602

3 Trinh Quoc Bao 1721000655

4 Phan Hoang Bao 1721000654

5 Thai Ngoc Minh Uyen 1521002504

Pros of Nike’s core Marketing strategy:

Nike put heavily proportion in their marketing strategies and products design

In order to sustain their dominance in the industry and retain their competitive advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies

Cons of Nike’s core Marketing strategy:

Although Nike's marketing strategies had brings lot of positive implications to the company, but it will bring negative implications to Nike too The negative implications that will identify in this assignment are high cost incurred, influence of spokesperson, and competitors

Risks of Nike’s core Marketing strategy:

Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance The risks will have a negative influence about Nike's future development, for example, the market share in the world, reputation, brand image, and customer loyalty

Question 2: If you were Adidas, how would you compete with Nike?

Adidas needs to use marketing research to better understand consumers’ wants and needs The company cannot just produce without a good understanding of what the customers’ are willing to buy (their needs and wants) Without this powerful marketing research they would be ending up with huge inventory with no market Adidas also needs to consider market analysis to explore opportunities on untapped

markets where the company can outrun Nike in product awareness

The company also needs to focus on market segmentation, and target the market position he wants to take The company needs to revisit its mission and vision to better align all activities towards one and the same goal If all efforts are directed towards one common goal – there would be minimal reasons to fail

Adidas needs not stop in innovating and striving to be the best in the industry Complacency is a common pitfall for failure

Question 3: With a portfolio as diverse as Google’s, what are the company’s core brand values?

With a diverse portfolio, Google has its underlying core brand values These core brand values are as follows:

Good Work Environment:

As a global corporate citizen, Google has always tried hard to be one of the

“Good Guys” in the corporate world, underneath a touchy-feely work environment Basically Google hires great people and expect a lot from them in return They also try to create an environment where people can prosper and grow They treat their people with justice and respect; share and welcome ideas openly

Doing the Right Things:

Within its corporate culture, Google always encourages well-built ethics with

an eminent founding credo: “Don’t be evil” Honesty and integrity in all they do and their business practices are beyond criticism They have a motto of making money by doing good things

Offering Prime Online Services:

Google adds value by providing tools to the advertisers’ better target their ads and better understand the effectiveness of their marketing Google Analytics, free to Google’s advertisers, provides a custom report, or dashboard, detailing how Internet users found the site, what ads they saw and/or clicked on, how they behaved while there and how much traffic was generated

Technology & Innovation:

Google always apply their technology and creativity to solve important problems and come up with new ideas As a result they are in a quest of building the world’s best technology and products

Marketing Asset Management:

With its ability to deploy data that enable up-to-the minute improvements in a Web marketing program, Google supports a style of marketing in which the advertising resources and budget can be constantly monitored and optimized

Question 4: What’s next for Google? Is it doing the right thing taking on Microsoft with the concept of cloud computing, and Apple in the fight for smart phones?

With the advancement of science and technology, Google is trying to come up with new products and services ideas which seemed beyond individual’s imagination Google’s stage of development starts within Google Labs, which lists new products available for testing It next moves to beta status, where invited users test early prototypes Once the product is fully tested and ready to be released to the general public, it moves into the gold stage as a core Google product As their next projects, they have come up with Google Voice and Google Glass According to my point of view, Google is doing well against Microsoft’s Cloud Computing concept and Apple’s smart phones

Google Vs Microsoft’s Cloud Computing:

Cloud computing is a type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications Google is doing well with this kind of applications where they already inaugurated two of their cloud computing applications which are – Going Google and Google Drive These are the two software where a person can store data here And the user can access to those data from any remote computer with an internet connection Google Drive is getting popular to the smart phone users with Android Operating System

Google Vs Apple Smartphone:

Google is also going big in the mobile category In 2008 it launched Android;

a mobile operating system with which Google went head-to-head with Apple’s iPhone Although many still prefer Apple’s platform, but most importantly, Android

is free, open sourced, and backed by a multimillion-dollar investment On the other hand, the iPhone is available only through few distribution channels In case of applications availability, Android has a wide range of free applications where Apple

is lag behind them Along with this, some other differentiations establish Google as

a strong competitor of Apple’s smartphones

CHAPTER 2

Question 1 : How is building a brand in a business-to-business context different from doing so on in the consumer market ?

Building a strong brand that is able to set a company apart from other business

is always an important job However depending on who the intended client is determines how the company will build their brand A brand is defined as a name, term, sign, symbol, or design, or any combination to identify goods and services of

a seller or group of sellers

While many things in branding are the same, building a brand that supports brand to brand, B2B, or brand to customer, B2C, sales has slight differences In B2B branding, a focus will be made on making a strong connection with the client business in order to make their brand seen as the top choice and safe to do business with In order to do this, the brand will be built around making strong and personal relationships with the customer to become the go-to source Instead of mass marketing and small ads, B2B branding requires that the business be willing to accept the time to completely educate the professional buyers about the brand These professional buyers are used because they are well informed about the needs and goals of the purchase, and focus on purchasing a product that allows them

to achieve higher revenues at a lower total cost then other competitive businesses These buyers will be less influenced about the price and demand that the brand will be available when needed For this, the brand will need to have a simplified supply chain and logistics to meet these demands In B2C branding, the consumer market looks at a vast majority of people

While customers can develop a strong connection to a brand, little is spent for personnel information; relying instead on mass communications such as TV, radio, and magazine ads that are distributed

In making a brand become a top choice for consumers, things such as price, packaging, color, characteristics, name and logo are all designed to attract the average individual

Question 2 : Is Cisco’s plan to reach out to consumers a viable one ? Why or why not ?

According to the case study, Cisco achieved a global ranking of 18 in 2008 with revenues of $39.5 billion dollars thus making its consumer based plan a seemingly viable one (Cisco) In reviewing the market conditions of the 90's which were wide open for internet technology and comparing that to the 21st century

which has now been saturated with internet technology, Cisco is making a wise strategic move

By transitioning to a consumer based marketing company, Cisco is placing itself up against some very tough competition against Microsoft, Apple, and Dell, however, their continued growth seems to demonstrate they are holding their own with consumers (Cisco) Some of the key transitional actions from business-to-business into consumer based marketing that Cisco has made was to develop a message In 2003 the company began pushing the message of "This is the power of the Network", a catchy phrase consumers could relate with

Also, Cisco has consistently used television ads and other media outlets to help push its brand name to consumers and help the company gain market space successfully (Cisco) So, for Cisco, changing its business model to consumer based and making smart marketing decisions is helping the company refocus its efforts on the future

Question 3 : Discuss how Intel changed ingredient-marketing history What did it do so well in those initial marketing campaigns ?

In 1980s, Intel faced a problem to distinguish itself from the competitors and tried to convince consumers to pay more for its high performance products By creating the ingredient-branding campaign, Intel mended the matter and made history in 1991 To become distinctive, it chose a name for its latest microprocessor introduction that could be trademarked Pentium The “Intel Inside” campaign was the answer for the brand awareness problem This campaign helped move the Intel brand name outside the PC and into the minds of customers when the Intel gave significant rebates to computer manufacturers to include Intel logo in their PC ads

or add the “Intel Inside” sticker on the outside of theirs PCs and laptops It succeeded in distinction and then raising customer’s brand awareness in its very first step of marketing campaign The later achievements came from several effective and identifiable marketing campaigns in the late 1990s to become a

recognizable and well-liked ingredient brand name Special advertisements coming out with “Bunny People” series had made strong impression in the audience’s mind.Famous Blue Man Group was also used in its commercials for Pentium III and Pentium IV Intel effectively utilized the basic factors of advertising like creativity and used celebrities’ influence with the public to draw most attention of consumers

In 2000s, Intel promoted its development by doing more marketing efforts New products were developed to extend its target market In 2003, a multimillion-dollar media effort was made around the new platform called “Unwired” which based on the core product Centrino, a unique integration of a new microprocessor, an extended battery, and wireless capabilities Although the PC industry slowed in the mid-2000s, Intel continued to lead the market by seeking opportunities in new growth areas such as home entertainment and mobile devices with Viiv and Centrino Duo A remarkable reposition campaign was carried out to change Intel from a brainy microprocessor company to a “warm and fuzzy company” A replacement in logo and slogan from familiar “Intel Inside” to “Leap Ahead” happened, too New improved products has been continuing to be regularly launched to consolidate Intel’s position and expand its new market Classmate PC for children in remote regions of the world in Learning Series in 2007, Atom processor for mobile Internet devices, netbooks, and nettops In 2008, the Intel Core i7 in the same year brought in turn a big revenue for the company Intel’s most recent ad campaign named “Sponsors of Tomorrow” was the effort to improve the Intel’s brand awareness in customer’s mind

In conclusion, Intel did a series of marketing campaigns to help it become the top brands in the world Focusing on creating trademark, positioning its brands, making a series of attractive ads and finding new opportunities accompanies with upgrading continuously its powerful products, Intel made it to be one of the most valuable brands in the world

Question 4 : Evaluate Intel’s more recent marketing efforts Did they lose something by dropping the “Intel Inside” tagline or not ?

In mid-2000s, the PC industry got into slow development and it influenced all the related companies, not excluding Intel This urged Intel to change and if they want to grow more, they have to make an innovation They took action by creating a new $2 billion global marketing campaign: changing their familiar “Intel Inside” tagline, creating new logo and repositioning the company Things stuck into customers’ mind whenever they think about Intel are all changed There will be no more “Intel Inside”, it’s “Reap Ahead” instead This new clearly outstanding slogan showed us new company’s direction will reflect in their future products and culture The question is whether Intel lost something by dropping the “Intel Inside” tagline or not In my opinion, they lost their “traditional value” that is the familiar

“Intel Inside” tagline but this change is necessary to adapt to the development of economy and the change of market Change is inevitable and a market leader must

be willing to embrace change to maintain the leadership position rather than resist

it Some people who identify themselves with the old tagline will find it difficult to get used to the new slogan But customers who trusted in the Intel’s quality will not doubt their new products with new slogan and logo Because the good reputation of Intel which helped them become a giant in microprocessor producing industry, has been deeply established in consumer’s mind

The new slogan of Intel “Leap Ahead” indicated their ambition to lead the market, continue to creating new things that meet the needs of people from all walks of life And in fact, they took the initiative in market expansion There are many examples for that: Viiv aimed at home entertainment enthusiasts, Centrino Duo mobile, Classmate PC for children in remote regions of the world, Atom processor, and especially is Intel Core i7 for video, 3-D gaming and advanced computer activities The positive effects eventually came in their new product’s consumption showed that the board of managers of Intel took the right action They lost some old value

by dropping the “Intel Inside” tagline but what they gained is more enormous The recent ads campaign aimed to improve the company’s brand awareness entitled

“Sponsors of Tomorrow” emphasized their new slogan and highlighted their role in changing the future of technology

CHAPTER 3

Question 1: Evaluate Microsoft’s strategy in good and poor economic times ?

In its early days Microsoft was a strong market leader and the company’s advertising efforts were focused on communicating their company’s range of products from DOS to the launch of Excel and Windows- all under a unified

“Microsoft” look (Kotler et al., 2014) It was selling 90 percent of the world’s operating system software, and generally left the advertising to Dell, H.P and other hardware makers who licensed Windows(Eisenach et al., 2000) The only time Microsoft hawk edits most recognizable brand on television was when the latest version of the software hit the shelves (Gawer and Cusumano, 2002) Then the company flooded the airwaves with commercials full of loud music and swirling imagery saying that the new version of Windows is out Apple is the classic smaller insurgent Its share for desktops and laptops in the United States is just over 8 percent Every time Apple grabs another point of market share from Microsoft’s partners, its stock price climbs And one way that Apple has tried to gain share is by running clever ads that ridicule everything Microsoft stands for (Gawer and Cusumano, 2002) There’s no better example than “Get a Mac,” unveiled three years ago by Apple’s ad agency(LEONARD, 2009) No technology company would choose Mr Hodgman’s character, PC, to personify its brand He reeks of the past He boasts of using his desktop to make spreadsheets and ridicules his more youthful friend, Mac, played by the actor Justin Long, for using his desktop for

‘juvenile’ pursuits like blogging and movie making Ñ even through it’s clear that

PC would like to be in on the fun He just can’t get his Windows computer to do his bidding Like a classic sitcom character Ñ think Ralph Kramden of “The

Honeymooners” Ñ PC is always dreaming up ill-advised schemes intended to show his superiority He’s thwarted by viruses, system crashes and other problems more associated with Windows-based computers than Apple’s products Ñ and, recently,

he has become a hapless apologist for Vista Mr Long’s character smugly watches his friend’s pratfalls, glancing at the audience with raised eyebrows as if to say, “If only this poor guy would buy a Mac .”(Baye,2012) PC will never learn Not as long as he keeps driving sales for Apple Since 2006, the year that he first appeared

in all his pasty-faced glory, Apple’s share of the computer desktop market in the United States has more than doubled, according to IDC, the technology industry research firm Its stock price, meanwhile, has risen 142 percent since May 2006, while Microsoft”s has barely budged Yes, the astonishing success of newer Apple products like the iPod and the iPhone has helped But the PC character should also take a bow Apple’s ads put Microsoft in a bind One of Madison Avenue’s rules is that a market leader never acknowledges a smaller competitor in its advertising (LEONARD, 2009) And it was clear in the case of Microsoft & Apple advertising war, where Microsoft failed to learn a valuable lesson

Question 2: Discuss the pros and cons of Microsoft’s most recent “I’m a PC” campaign Is Microsoft doing a good thing by acknowledging Apple’s campaign in its own marketing message? Why or why not?

Microsoft’s marketing strategy did not/does not change to reflect consumer’s changing buying priorities For example, in 2008 in the midst of a recession, Microsoft was still plugging away with selling products at premium prices without delivering premium value for the money (VISTA)Ñ hence the success of Apple’s campaign premium products, but they deliver performance In good times, people’s willingness to ‘buy’ products based on prestige, popularity, and peer pressures is greater than in less robust economic times when priorities are evaluated more closely Microsoft has to learn to adjust its marketing message to meet the demands

of their consumers(Kotler and Armstrong, 2010).Customer Relationship Management does much more than just track customer interactions It also helps

organizations optimize their operations by automating routine tasks and standardizing best practices Ultimately, CRM allows organizations to better acquire, manage, serve, and extract value from their customers while improving operational efficiency something that is critical in today seconomy Microsoft has clearly adopted this technology through its products(Chen and Popovich,2003) For example, Microsoft Dynamics¨ CRM business software is very powerful in terms of understanding the customers and dealing with them differently & personally Over the years, if we analyze Microsoft, we would be to able to see clear growth in short spanning of time, after constant change in leadership

Question 3: Evaluate Walmart’s new marketing campaign and tagline Did the company make the right decision to drop “Always Low Prices Always

as a tagline” Why or why not?

“Save money, live better” has hit directly into customer insights when people those days spend more care to environment, especially saving Saving for environment, saving for your future, etc have been targets for everyone Walmart caught these insight, then released an effective campaign which help families save the average spend for about 3100$ a year Moreover, Walmart has successful in making customers think that Walmart care about their budgets

Walmart did the right decision doing that Because for people nowadays, low price does not mean more saving anymore In the first decade of 21st century, due

to the economic crisis, people who are effected by the recession has increased badly Therefore people, who are Walmart’s customers, wanted to reduce spending

by buying things what they need, not what they want Walmart caught this insight and made a right decision

Question 4: Walmart does very well when the economic turn sour How can it protect itself when the economic is on the rise? Explain

Since Walmart started from a small store I believe they didn’t have knowledge

on how to manage a big store and less when it became an international megastore To

protect itself when economy is on the rise is to learn from the past, evaluate the present and think about future strategies on what they want to achieve They should use strategic long term decisions by targeting market decision, value proposition and analyzing marketing opportunities Also, tactical by product features making sure their products are what people needs, promotions on products, merchandising, keep their lower prices, sales channel and providing good services Walmart also must keep building a stronger customer loyalty, improving the store looks, people don’t want to go to stores and see everything on the floor or difficult to search, environment, adding new amenities to the stores to meet customer needs Another important fact is to provide customers with more access to online purchasing, we are in the technology area and most of us are mostly on our phones and computers and online shopping is a main thing for many busy people They must work on apps, online services with good customer experience and advertisement They also should be aware of new laws, advertising brands which I’m pretty sure they do know but lawsuits are always there.

of research methods like customer observation, customer interviews, prototyping and also let people participate in the design process (usability tests at each development stage) To put the customer first is one of the key success factors nowadays to meet their needs and to be successful By designing products which consumers really want, IDEO guarantees sales They also have an own research methods, for example the "human-centered research method" By researching deeply, IDEO gathers detailed, accurate and precise information about customer's

needs If you know and understand what consumers want, you can design product that exactly meets their needs and will be highly accepted by consumers Many companies don t put consumers first and don't ask them what they really want That

is why they get stuck IDEO designs "from the outside in"

In the end, IDEO creates great solutions for companies that then receive all the credi Should IDEO try to create more brand awareness for itself? Why or why not? IDEO shou not try to create more brand awareness for itself Its core business is to

do market and customer research, design products for other companies and to consult them in a very specific niche Brand awareness for the company itself is not needed because they are operating in a B-to-B area, not the B-to-C area

Question 2: Elaborate on Intuit’s use of customer research Why did it work so well for the company?

Intuit personally have their own researcher visit their consumer’s home and study how their consumer react with their product They understand the user needs and produces products that suits the consumer needs They often interview their consumer over the phone and asked about new design to learn more about the generation patterns and what they prefer more This has work so well for the company because they understand what the consumer wants and improves their product well accordingly to the information they have

Question 3: Could anything go wrong for Intuit now that it has beaten out Microsoft? Why or why not?

Something could have still go wrong for Intuit even if they have beaten out Microsoft This is because even if Microsoft have discontinued their money product Other companies might try to develop new products similar to Quicken Eventhough Quicken has gotten its fame and many consumers are using it as well,

if there are much better choice and software for the consumers, they might waiver their decision if Quicken’s performance is dropping In order to make sure Quicken

stays alive, Intuit has to continue improving its product by continue researching about what consumer wants and prefer

Question 4: How should Intuit gauge the results of its research among younger consumers with mobile devices?

Intuit can measure the results of their younger consumers by measuring the time usage each consumer use for the application The longer the consumer use their application, the more likely consumer loves their product and will continue using it

Question 2: How can Tesco take its customer loyalty programs to the next level?

Tesco can take its customer loyalty program to the next level by concentrating more toward marketing research and linking consumers behavior towards different services By researching more about their customers behavior and satisfaction, we they can create a better profile to understand the needs and trends

CHAPTER 6

Question 1: What does Disney do best to connect with its core consumers?

Disney used emerging technologies to connect with customers, this help customers to be served more easier and entertainingly

From 1980s it adopted strategy to reach older audience, now its market consists of all ages and culture

Disney organizes different type of events for customers

Question 2: What are the risks and benefits of expanding the Disney brand in new ways?

It is Disney policy to always seeking for exploring and expanding its makes They themselves invest in the areas such as theme parks, movies, … This help the company to bring more revenues and profits

Question 3: What are some of the things IKEA is doing right to reach consumers in different markets? What else could it be doing?

Leading-edge Scandinavian design at extremely low prices IKEA sources its products from multiple companies all over the world rather than a handful of suppliers as many furniture retailers do.This ensures the lowest price possible, and savings that are passed on to the consumers

The floor plan is designed in a one-way format, so the consumer experiences the entire store first, then can grab a shopping cart, visit the warehouse, and pick up the desired items in a flat box

Many IKEA products are sold uniformly throughout the world, but the company also caters to local tastes

Question 4: IKEA has essentially changed the way people shop for furniture Discuss the pros and cons of this strategy

Pros: When a consumer walks through an IKEA store, it is a very different experience than most furniture retailers The floor plan is designed in a one-way