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Table of Contents

▼ Marketing mix (22)
  1. Apple Marketing Mix
  2. Burger King Marketing Mix
  3. Dreamworks Marketing Mix
  4. eBay Marketing Mix
  5. Facebook Marketing Mix
  6. Fox Entertainment Marketing Mix
  7. General Electric Marketing Mix
  8. Google Marketing Mix
  9. Hewlett Packard Marketing Mix
  10. Home Depot Marketing Mix
  11. Ikea Marketing Mix
  12. Johnson and Johnson Marketing Mix
  13. Kroger Marketing Mix
  14. Marketing mix
  15. Nintendo Marketing Mix
  16. Pepsi Marketing Mix
  17. Ryanair Marketing Mix
  18. Sony Marketing Mix
  19. Starbucks Marketing Mix
  20. Three Levels of a Product
  21. Time Warner Marketing Mix
  22. Yahoo Marketing Mix


LESSON 1

Apple Marketing Mix

After obtaining financing for the development of Apple II, the Apple Computer Company was formed in 1970.As the growth of home computer use grew, Apple grew with it. In 1980 the company issued its initial public offering of investment stock.
Apple next introduced the MacIntosh Computer in 1983 during the Super Bowl. The computers desktop publishing features provided the foundation for future innovations that have become standard for the company. Today Apple, Inc has more than 33,000 employees and revenues exceeding 42 million dollars.

Product

  • Portable Computers – including Mac products such as Mac Book Pro, iMac, MacBook Air, Mac Mini, Xserve
  • Servers – including Xserve, Xsan, MacOS X Ser, MobleMe.
  • Accessories – including MagicMouse, Keyboard, Led Cinema Display.
  • Wi-fi Based Stations – including Airport Express, Airport Extreme, Time Capsule.
  • Developer – including Developer Connection, Mac Program, iPhone Program.
  • iPod – including iPod Shuffle, iPod Nano, ipod Classic.
  • iPhone – including iPhone3GS, iPhone3G, iPad.
  • iTunes – including movies, TV shows, audio books, games.
  • Periphal products – including Printers, Storage devices, digital videos and cameras.

Apple Marketing Mix

Introduction

Apple, Inc originated from the friendship and mutual interests of Steve Wozniak and Steve Jobs. The Two collaborated in the development of the “Apple I in the early 1970s. The Apple I was a step ahead of most computers of the time featuring a use of aTV as a display system and a cassette interface for recording programs. Would you like to take a lesson on the marketing mix?

Price

  • Apple is a premium brand computer that does not attempt to compete on price. The company has reduced prices after some initial product launches. It uses skimming and preimuim pricing strategies.
  • The AppleiPad is priced at a minimum of $499.
  • The Apple iPhone costs begin at $99.
  • The Apple iPod Classic is priced starting at $249.
  • The Apple iPod Nano costs $149.
  • The Apple Mac Book costs $999.
  • The Apple MacBook Pro is priced at $1199.
  • The Apple Quicktime Pro for Windows costs $29.99
  • Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response dictates such action. This would be consistent with a similar $200 price cut on the iPhone in 2007.
  • In 2009 Apple announced a reduced cost pricing structure for iTunes – songs will cost 69 cents, 99 cents or $1.29. He said the “vast majority” of the songs will cost 69 cents. Changes are said to be a response to a slower pace of music downloads.

Place

  • Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino, California.
  • The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. Certified on Apple technologies, these providers deliver on-site technology services and support to home users and businesses of all sizes.
  • Apple service providers are certified technicians, who complete regular Apple training and assessments, and offer repair services, and exclusive access to genuine Apple parts.
  • They are located in Asia/Pacific, Africa, the Middle East Europe and Latin America.
  • Apple has over 200 retail stores worldwide including the US, UK and Canada. Apple recently opened a new retail store in Shanghai China.

Promotion

  • Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on the all products.
  • Apple, Inc authorized Training Centers are located throughout the U.S. each provides instruction in Mac systems, Mac OS X, and Apple’s professional applications. A wide range of certification exams and courses offer innovative learning opportunities for IT and creative professionals, educators, and service technicians—delivered exclusively by Apple Certified Trainers.
  • The Apple Consultants Network website provides a search tool allowing visitors to locate nearby certified Mac product consultants in the U.S, Canada, and a number of international locations.
  • The online Apple Store offers free shipping for orders over $50.
  • The online Apple store offers iTunes gift cards.
  • Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store.
  • Apple has packaged back-to-school offers, including some aimed at college students.
  • People

    • Stephen P. Jobs is the Chief Executive Officer of the Executive Board at Apple, Inc
    • Non Executive Board Directors include William V. Campbell, Millard S. Drexler, Albert Gore, Andrea Jung and Author D. Levinson.
    • Key Senior Management team members include Timothy D. Cook, (COO), Scott Forestall, Jonathan Ivey, (Industrial Design), Ronald B Johnson (Retail), Robert Mansfield Mac Hardware Engineering), Peter Oppenhiemer (Chief Financial Officer), Mark Papermaster (Devices Hardware Engineering), Philip W. Schiller (Worldwide Marketing), Bertrand Serlet (Software Engineering), and D. Bruce Sewell (General Counsel).
    • Some certified Apple service providers offer additional services beyond repairs and parts such as such as data transfer, data recovery, upgrade services, and onsite deployment and installation.
    • Every Mac, iPod, iPhone, and display comes with complimentary telephone technical support for 90 days after your purchase and a one-year limited warranty. The AppleCare Protection Plan extends your service coverage and gives you one-stop service and support from Apple experts.
    • The AppleCare Professional Video Support gives you direct access to Apple’s Professional Video Technical Support team via telephone and email 12 hours a day, seven days a week.

    Physical Evidence

    • Apple Inc’s main website is located at http://www.apple.com
    • The Apple logo has evolved from its original depiction of Sir Isaac Newton under a tree to the memorable rainbow apple to the present blue Apple with a bite taken out.

    Process

    • Apple converts new customers and secures their loyalty through a corporate emphasis on customer service.
    • Apple seeks to attract its target market through bold public relations events (such as the MacWorld Expo) as well as advertising imagery which borrows from contemporary modern art.
    • Apple has expanded its distribution channels in recent years including the addition of Wal Mart.
    Disclaimer:
    This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 2

Burger King Marketing Mix

Currently Burger King operates in about 71 countries worldwide, but it all began in Miami where the first restaurant was opened in 1954, and began to grow exponentially after the introduction of the Whopper sandwich in 1957. The firm became a publicly traded company in 2006.

Product

  • As a fast food hamburger restaurant (FFHR) chain, Burger King produces, hamburgers, cheeseburgers as well as Fries, Salads, Hash browns, Onion rings, Coffee, Juice, Shakes, cookies and pies.
  • Burger King sets itself apart from competition with its “have it your way” theme which allows individualize each orders with many options including fries or onion rings, cheese, bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion.
  • The nation’s No. 2 burger chain will add Starbucks Corp.’s Seattle’s Best Coffee to all its U.S. restaurants in a phased roll-out that begins in the summer of 2010. Under the effort, more than 7,000 Burger King Restaurants will begin selling the coffee along with iced varieties that also come with a choice of plain, vanilla or mocha flavors and whipped toppings.
  • Burger King has signed a licensing deal with ConAgra Foods Lamb Weston which will result in offering a retail line of microwaveable Burger King Brand French fries at select retailers in the United States, including Wal-Mart.

Price

  • Burger King recently joined McDonalds in offering a $1 double cheese burger.
    Some of its franchises claimed the price reductions cut into profits. Burger King has reportedly ended its unpopular (among franchise owners) $1 double cheeseburger promotion.
  • Burger King plans to sell slushy drinks for $1 leading into the summer in order to offer an alternative to McDonalds $1 summer drink.
  • The company also will continue to sell its new premium burger, the Steakhouse XT, for $3.99 through mid-September, with another national television ad splash planned in August.

Burger King Marketing Mix

Introduction

Based in Miami, Florida, Burger King is one of the worlds best known fast food restaurants (it is the second largest company in the world). The company’s 40,000 plus employees helped it earn over $190 million dollars in 2008. Its success is reflected in a 28.4 percent increase in net profits for FY 2008. Would you like to take a lesson on the marketing mix?

Place

  • Burger King operates its business via franchises, under a franchise arrangement, the franchisees invest in the equipment, signage, seating and decor, while the company owns or leases the land and building. The company generates revenues from three sources: sales at company restaurants, royalties and franchise fees and property income from those franchises that lease or sub lease property from the company.
  • Burger King occupies primary locations.

Promotion

  • Burger Kings Big Value Menu $1 Talent Show invites customers to display their talent via videos they submit with the goal of winning a menu item.
  • The company has coined the term “next best move” to feature scheduled promotional tours with stops in urban communities around the country. The effort is augmented by a special website where
    Participants can describe community service contributions.
  • Burger King is backing its biggest product launch of the year, the Tendercrisp Premium Chicken burger, with a promotion theme encouraging consumers to “cheat on beef”’.
    The campaign began in March of 2010 using ads created by Crispin Porter & Bogusky.

Process

  • A Burger King strategy has focused the customer segment that spends the most money at its restaurants. These young men and women visit fast-food burger chains on average almost 10 times per month.
  • The company has employed a combination of “loss leader” promotions” coupled with upsells of more expensive menu items, specifically higher-margin French fries and soft drinks.
  • Recently Burger King has concentrated on adding restaurants and entering new strategic markets. They have added over 400 new restaurants in the last three years.
  • The company seeks to further growth and popularity via its innovative marketing promotions such as the King television commercials.

Physical Evidence

  • Burger King, based in suburban Miami, Florida, operates more than 11,900 restaurants in all 50 states including 107 in Alabama, 122 in Arizona, 336 in Michigan and 547 in its home state of Florida.
  • Burger King has an internet presence via its website BK.com. The site provides company information such as a video history of the company, press releases, and stock information.
  • The company is in the process of reinventing its image via key changes in its decor. Its new restaurants will feature modern, box-like architectural lines and urban-industrial building materials, including corrugated metal.

People

  • John W. Chisley is Burger King’s Chief Executive Officer and Executive Chairman of The Board. He has served in the CEO capacity since 2008.
  • Alexandra Galindez the director of multicultural marketing for Burger King and in charge of implementing its “Next Best Move” initiative, which seeks to strengthen its standing in urban communities by conducting a national tour to community basketball courts in 41 markets.
  • In 2009 Black Enterprise magazine named Burger King one of the “40 Best Companies for Diversity.”
  • Burger King pairs its “have it your way” theme with speedy customer service. To facilitate fast service Burger King takes customer orders on a continual basis. After an order is taken, the customer then moves down the line where another employee is preparing the order. Meanwhile, the original employee is taking another customer’s order. Customers also get their own drinks while they are waiting for their meal.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 3

Dreamworks Marketing Mix

Originating in 1994, DreamWorks was launched by a partnership of Steven Spielburg, Jeffrey Katzenburg and David Coffin. In 2001, the company released Shrek movie. Shrek won the first-ever Academy Award for Best Animated Feature in 2001. The company executed a seven-year distribution agreement with Paramount Pictures for the rights to distribute DreamWorks Animation films in theatrical, home entertainment and television markets worldwide in 2005.

Product

  • DreamWorks Animation develops and produces CG animated feature films among its output include CG animated films, Non CG animated films, widgets and games. DreamWorks also produces movies such as Bee Movie, Flushed Away, How to Train Your Dragon, Kung Fu Panda, Madagascar, Shark Tale, Shrek 2, Shrek the Third and Sinbad: Legend of the Seven Seas.
  • DreamWorks Television is a television production division of DreamWorks SKG which has produced telivision programing such as Carpooler, The Pacific, The United States of Tara and The Contender. It has also produced TV specials such as Shrek the Halls and Merry Madacascar.
  • All of DreamWorks Animation’s feature films are now being produced in 3D.

Price

  • Blu-ray discs ($25.99) at Toys or Us, Madagascar ($25.99) at Toys or Us, and Disturbia.
  • Shrek DVDs ranging from $10.99 on ebay to $59 on Amazon.
  • How to Train Your Dragon $199 from DreamWorks animation.
  • 5 Pack of Hit dream Movies (including Antz) on Google Products for $35.

DreamWorks Marketing Mix

Introduction

In 2008, DreamWorks Animation generated over $650 million through its development and production of computer generated animated films and TV specials. Operating out of Glendale, California, DreamWorks employs approximately 1,700 people. Would you like to take a lesson on the marketing mix?

Place

  • Currently, United International Pictures, a joint venture of Paramount and Universal, has the rights to release DreamWorks’ films internationally, and will also handle releases from the new DreamWorks.

Promotion

  • DreamWorks Animation hosted the first a live streaming event about Shrek Forever.
  • Shrek fans were able to use Facebook to send questions and messages, chat and invite others to attend the Green Carpet Coverage.
  • DreamWorks partnered with McDonalds for the production of a Shrek Forever” themed happy Meal. The project will use Shrek to encourage kids to eat more fruits, vegetables and dairy products. The May 14th launch will be followed up by an international launch.

Process

  • DreamWorks is co-producing some projects with its competitors (and sharing profits from) six other studios’ summer blockbusters, including Paramount’s Transformers: Revenge of the Fallen and The Uninvited in addition to Montecito Pictures’ I Love You Man. These arrangements have enabled DreamWorks to reduce its risk, even as it increased profits.
    Currently, United International Pictures, a joint venture of Paramount and Universal, has the rights to release DreamWorks’ films internationally, and will also handle releases from the new DreamWorks.

Physical Evidence

  • DreamWorks is located at 1000 Flower Street in Glendale California.
  • DreamWorks boasts a well recognized logo features a young boy sitting on a crescent moon with fishing pole in hand. The music accompanying the logo to start each new DreamWorks movie was composed by John Williams. The main logo shows the scene at night, while the DreamWorks Animation logo reflects the same image in daylight.
  • DreamWorks studios has a website which provides news on forthcoming studio productions such as “Quartermain “, as well as its leadership team. In addition DreamWorks Animation sports a website dominated by the latest Shrek movie related items.

People

  • DreamWorks was founded by Steven Spielberg, Jeffery Katzenberg and David Geffin.
    The Company has world-class creative talent, a strong and experienced management team and advanced filmmaking technology and techniques.
  • Heather O’Conner assumed the role of DreamWorks Chief Accounting Officer in 2010, taking the Place of Phil Cross who will remain a consultant to the company.
  • Kelly Avery is the head of Franchise Strategy & Distribution where she is responsible for overseeing the development of the studio’s global franchise plan, including new product and business initiatives.
  • DreamWorks is listed number six among the Top One Hundred Companies to Work For.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 4

eBay Marketing Mix

The company established its brand as being an entity that connects people (with selling things as a by-product of that emphasis). The company began to move beyond auctioning collectibles and moved into an array of upscale markets where the average sale price (ASP) is higher. Average sales price is crucial to the company’s transaction fee income.
In 1997 the company received approximately $6 million in venture capital from Benchmark Capital. The company went public in 1998. Today the company has revenues exceeding $7 billion annually and boasts over 15,000 employees.

Product

  • PayPal is an online transaction business allowing payments and financial transfers to be made through the internet. PayPal is an alternative to offline transaction methods such as checks and money orders.
  • eBay offers  a marketplaces for the sale of goods and services. It also provides online payment and communication services to individuals and businesses.
  • Products on sale at Ebay include millions of collectibles, décor, appliances, computers, furnishings, equipment vehicles and other miscellaneous items are listed, bought, or sold, daily.
  • Bill Me Later is an Ebay service that provides convenient and secure payment method designed for purchasing on the web or over the phone.
  • Rent.com is an Ebay subsidiary which is a first pay-for-performance online rental site, a business model that outperformed competitors who went with subscriptions, listing fees, or costs-per-lead revenue models The company charges the property manager when a verified lease is produced through the site.
  • Shopping.com is an online community Owned by Ebay it provides a price comparison service and operates webpages in the USA, United Kingdom, France, Germany and Australia.
  • StubHub is a subsiiary of Ebay which acts as an online marketplace for buyers and sellers of tickets to sporting, concert and theater events.
  • Skype is an economical communication tool owned by Ebay. The company provides free video calling , free chat with other Skype members, free instant messaging and call to landlines at low rates.
  • Half.com is a subsidiary of Ebay, Inc in which sellers offer items at fixed prices, usually items that have a ISBN, UPC  or database file indicators as opposed to rare, old or collectible items. The items available on half.com are limited to textbooks, music, movies, video games, and video game consoles.

Price

  • Ebay, Inc. recently changed some of its pricing policies, dictating different listing fees from frequent and occasional sellers.
  • EBay, Inc. Every Day eliminated upfront listing fees (for auctions only, not Buy It Now), and instead charges 9-percent of the final sale price, up to $50.
  • Ebay, Inc. employs a quality click pricing model which pays affiliates "by the click", just like AdSense.
  • Sellers are charged when an item is listed on eBay a nonrefundable Insertion Fee is charged, which ranges between 30 cents and $3.30, depending on the seller’s opening bid on the item.
  • Sellers pay a fee for additional listing options to promote the item, such as highlighted or bold listing.  
  • A final sale price fee is charged to a seller at the end of an auction. This fee generally ranges from 1.25% to 5% of the final sale price.

eBay Marketing Mix

Introduction

Ebay began its business life as AuctionWeb and emphasized collectables. Originally the company was meant to be a marketplace for the sale of goods and services for individuals. The company’s founder was a computer programmer Pierre Omidyar. Its co-founder was Jeff Skoll. Would you like to take a lesson on the marketing mix?

Place

  • New Ebay users can find answers to procedural questions by utilizing the company’s Answer Center located at http://pages.ebay.com/community/answercenter/index.html
  • Ebay provides an international site visibility feature which allows some listings created on eBay.com to be posted on international sites (such as the U.K. site). Buyers on these sites will see the listings exactly as you originally post them on the U.S. site.
  • Ebays Seller Information Center aids participants by offering information on getting started, growth strategies and shipping http://pages.ebay.com/sellerinformation/

Promotion

  • There are eBay Coupons, eBay discounts, eBay Promotional codes, and an eBay bargains page at DealTaker.com
  • The eBay Bucks Rewards Program gives those who use PayPal on Ebay 2% back on qualifying purchases participants get a rewards certificate at the start of each calendar quarter for the amount of eBay Bucks they accumulated in the previous quarter. They have 30 days to spend it on any eBay listing with PayPal.
  • EBay Radio provides traders and eBay community members with the latest in news and views from around the eBay world and covers major eBay events like the annual Ebay Live Conference.

Process

  • Participants who list an item on eBay, are charged an insertion fee. If the item sells, you’re also charged a final value fee. The basic cost of selling an item is the insertion fee plus the final value fee. The basic fee structure depends on the type of listing—auction-style or fixed price format—you use.
  • Ebay provides helpful information to facilitate the use of its services at Ebay University http://pages.ebay.com/sellerinformation/starting/university.html.
  • Ebay facilitates transactions by providing “Daily Deals” which highlight discounted prices parties can sign up to receive a Daily Deals Alert.

Physical Evidence

  • The Ebay, Inc headquarters is located at 2145 Hamilton, Ave, San Jose California.
  • Ebay has introduced a new fashion category.
  • The company has introduced a new Products Review tab enabling a user to find the right product at the best price
  • New Ebay users can find answers to procedural questions by utilizing the company’s Answer Center .
  • Ebay provides an international site visibility feature which allows some listings created on eBay.com to be posted on international sites (such as the U.K. site). Buyers on these sites will see the listings exactly as you originally post them on the U.S. site.

People

  • John J. Donahoe is the President & Chief Executive Officer
  • Pierre Omidyar is Chairman of the Non-Executive Board
  • Scott Thompson  is President of Paypal
  • BobSwan is Senior Vice President
  • Ebay purchases are now under a new Buyer Protection Program which covers a buyers full purchase price and shipping and implemented via a new streamlined customer service procedure.
  • Ebay Feedback is a procedure that lets participants monitor their transaction reputation as an eBay member. It’s made up of comments and ratings left by other members you’ve bought from and sold to.


LESSON 5

Facebook Marketing Mix

Timeline is the most recent product innovation (September 2011). This feature allows users to frame their page as a story. It also allows users to include more media such as music and movies. Other new product introductions include photos (where users can share photos about activities), newsfeeds (would provide a summary of recent activity of others that you subscribe to) and groups (which is a customizable area for connecting with friends).

Promotion

Facebook makes most of its revenue through advertising. Their argument is that your customers are using Facebook everyday as the way that they interact with friends. There are three steps to engage with your customers on Facebook. First of all you create your own business page which is free for businesses and is a way of engaging in relationship marketing. So a business would promote a Facebook page on a website, on a business card or any other marketing communication. Then Facebook reason that you should engage with your customers by conversing with them. This means regular posts and offers. You should respond to their comments (although this would work best for a much smaller company) and you will learn how they actually engage with your site or page by using Facebook insights (which is the Facebook metrics tool). Finally you would create an advert, rather like you would with Google Adwords. You also have the opportunity to run a sponsored story. It is advertising that generate most income for Facebook.

Price

Facebook is free. There is no subscription.
Income is made through advertising. You pay for Facebook ads and sponsored stories. Advertisers control their advertising expenses by setting daily or lifetime budgets. Costs are not set in stone. Charges are made by clicks (CPC) or by impressions (CPM) for each advert or story. There are tools on Facebook that help you to work out potential Marketing Budgets. There is a bidding process for popular terms and keywords.

Place

Everything is done online either by using a computer or by using a cellphone or mobile device. One simply registers by the Facebook website to create an account. If you have a cellphone you can download an app and use the social network whilst on the go.
The business itself is physically based at 1601 Willow Road, Menio Park, California. The company currently employs more than 3000 people and it is planning to increase its workforce to about 6600 people. Facebook is about to build a new campus on the other side of Route 84. Facebook in common with Google and other tech companies calls its buildings a campus, rather like the University.

People

Of course Facebook has a few well-known faces of its own. Mark Zuckberg is the co-founder and chief executive of Facebook. The story of this business is now firmly embedded in popular knowledge. This is how the story goes if you haven’t already heard it 100 times! Facebook began in Zuckerberg’s Harvard dormitory room back in 2004. Originally membership was limited to Harvard students but was expanded out to other American universities quite quickly. It spread to all universities and then high schools as well, and then of course the rest of the world!
Other well-known names include fellow students Eduardo Saverin, Dustin Moskovitz and Chris Hughes.

Facebook Marketing Mix

Product

Facebook is a free social networking service. Once you have signed up you create your own profile and publish photographs. You can publish personal information such as your interests, your contact information and so on. Privacy has been a constant issue with Facebook, and more recently users now have the ability to control their settings and to tier their friends and so on.
Facebook has more than 845 million monthly users (December 2011). More than 80% of these active users are from outside North America. Would you like to take a lesson on the marketing mix?


LESSON 6

Fox Entertainment Marketing Mix

  • The company has operations in four business segments: Filmed Entertainment, Television Stations, Television Broadcast Network and Cable Network Programming.
  • In April of 2010 Fox joined a group of firms to form a joint venture (Pearl Mobile DTV Company LLC) to develop a new national mobile content service. The service will allow member companies to provide content to mobile devices, including live and on-demand video, local and national news from print and electronic sources, as well as sports and entertainment programming. Other participants include NBC & Telemundo, and ION — and the nine local broadcast groups, which are Belo, Cox, E.W. Scripps, Gannett, Hearst, Media General, Meredith, Post Newsweek and Raycom.

Price

  • In January of 2010 News Corporation offered to purchase the 18% of Fox that it doesn’t already own for $33.54 per share
  • In 2002 The Fox Network commanded 23 cents per subscriber, but planned to increase affiliate fees from cable operators when current long-term carriage deals expired. The higher per-subscriber fees and advertising revenue gains will continue to boost the cable network unit’s financials.
  • The FoxConnect website advertises “Family Guy Volume 8” DVD at $33.99

Fox Entertainment Marketing Mix

Product

  • The Filmed Entertainment segment is involved in the acquisition and production of animated motion pictures and live-action pictures for licensing and distribution primarily in the US, Canada and Europe. The segment also produces original television programs in Canada and the US. The company engages in productions of feature films and television shows. Would you like to take a lesson on the marketing mix?

Place

  • Fox distributes films through several businesses including Fox Filmed Entertainment (FFE), Twentieth Century Fox Television (TCFTV), Twentieth Television and Fox Television Studios (FtvS).  
  • Fox Television Stations owns and operates 35 full power stations. Fox Television Stations operates two stations in nine designated market areas (DMAs), including New York, Los Angeles and Chicago. Of the 35 full power stations, 25 stations are affiliates of FOX Broadcasting Company.

Promotion

  • Fox has employed branded integration techniques in co-promoting Unilever’s Degree for Men deodorant and its drama series “24”. The connection –  the overlapping brand attributes of protection, risk-taking and adventure.
  • In 2010, Fox initiated its “Meet the Family Guy” promotion which involves a Young Adult/College Key Market Event Tour & National Social Media Umbrella Campaign.
  • In March of 2010 Fox News began promoting Sarah Palin’s, Real American Stories, described as a program about folks who have experienced “real-life” adversity.
  • The Fox Connect Website   is promoting a $10 rebate on Glee Volume one-the first season.

Process

  • FOX Broadcasting Company employed Marketshare Partners to conduct a study of television’s importance in the media mix. The study sought to reveals the extent that  television was a central driver of sales results for major advertisers. Fox wanted to know whether television’s effectiveness has been impacted by the appearance of newer marketing media.
  • In January of 2010, all fox sports operations underwent a massive re-organization, FOX Sports, and the company’s 19 regional sports networks, Fox Soccer Channel, SPEED, Fox Sports en Español, FUEL TV and FOX Sports Interactive Media and also the company’s interests in joint venture businesses STATS, LLC. and Big Ten Network, all of which are now housed within the FOX Sports Media Group. The move is designed to maximize the strength of the FOX Sports brand across all platforms.

Physical Evidence

  • Fox Entertainment Group, Inc. is headquartered at 1211 Avenue of the Americas New York City 10036.
  • Fox News Network, LLC Blue Sky Studios, 1211 Avenue of the Americas.
  • Blue Sky Studios, 44 South Broadway, White Plains New York 10601.
  • New York Knickerbockers, 2 Pennsylvania Plaza, 14th Floor New York.
  • New York Rangers, 2 Pennsylvania Plaza, 14th Floor, New York.
  • Fox Searchlight Pictures, 10201 West Pico Boulevard, Building 38, 1st Floor Los Angeles.
  • Twentieth Century Fox Film Corporation, 10201 West Pico Boulevard, Los Angeles.
  • Fox Entertainment can be found online at Linkedin.com.
  • Fox Broadcasting has a website where it offers information on its programming.
  • Fox Kids Network has a website
  • Fox Studios website has a wealth of information on the 20th century fox studio grounds including stages and post production services. 
  • Information of Fox affiliate are found – here. The site provides a map of local affiliates by regions throught the US.
  • The Fox Entertainment Group logo is reminiscent of the old 20th Centrury Fox Logo, with Giant letters and night premier type spotlights on each side of it.

People

  • News Corporation is Fox Entertainment Group’s parent company.
  • K Rupert Murdoch is the Chairman and Chief Executive Officer.
  • Peter Chernin, President and Chief Operating Officer.
  • Fox Entertainment Group employs over 11,500 people.
  • In October of 2009, Fox appointed Roger Mincheff to the newly-created position of Senior Vice President of Branded Entertainment for digital content.
  • Former Fox Atomic executive David Worthen Brooks will oversee creative for the new digital studio, guiding the group’s content strategy and all creative aspects of show development and production.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 7

General Electric Marketing Mix

In 2005, the company restructured its operations into six business segments: infrastructure, commercial finance, consumer finance, healthcare, NBC Universal and industrial.

Product

  • General Electric’s capital finance segment includes commercial loans, operating leases, home loans, credit cards, and personal loans.
  • GE’s technology division produces Intrusion and fire detection products, card access systems, aircraft replacement parts, jet engines, medical diagnostics, medical imaging as well as patient monitoring equipment.
  • The company also provides products related to energy infrastructure such as wind turbines, gas turbines, water purification systems, and aircraft engine derivatives.
  • General Electrics NBC Universal Division operates cable networks, and produces motion pictures.
  • Products produced in GE’s Consumer and Industrial Division includes refrigerators, washers, microwave ovens, residential air conditioners as well as electric and gas rangers.

Price

  • General Electric introduced a “Power by the Hour” program for its aircraft engines, in recognition that its customers were not merely purchasing its airplane engines, but also the ability to minimize downtime through its maintenance and service initiatives.
  • In 2004 GE raised prices in for its Infrastructure Water and Process technology customers as a result of increasing cost pressures in a global economy, citing marketplace conditions for water treatment solutions which made it more expensive to do business.
  • General Electric’s “healthtmagination” initiative involves the reduction of prices in its medical imaging imaging and diagnostics business as a result of reduced customer spending in these areas.  

General Electric Marketing Mix

Introduction

General Electric originated in 1892 when Thomson-Houston Electric and Edison General Electric merged. Initially focusing on products such as toasters, motors and light bulbs, it is now a diversified company composed of media, financial services and technology divisions. These divisions provide business and consumer financing services, media content, as well as products such as aircraft engines, power generation, water processing, and security
technology. Would you like to take a lesson on the marketing mix?

Place

  • General Electric is headquartered in Fairfield Connecticut, at 3135 Easton Turnpike.
  • GE has subsidiaries located in Singapore, Mexico, Munich, China and Ontario Canada
  • General Electric has global business projects including Southeast Asia, Northern Asia, Austrialia/New Zealand, Africa, Latin America and Europe.

Promotion

  • In 2001, General Electric selected Responsys, Inc., as the preferred vendor to implement GE Services Network’s email marketing programs.  
  • GE’s slogan “we bring good things to life’ is among the most recognizable in the world.
  • General Electric has used co-branding to market its products, including Culligan, Calphalon and Lenox.

Process

  • The General Electric Company, with the assistance from the Boston Consulting Group and McKinsey and Company, pioneered the nine cell strategic business screen used to identify the most favorable position with attractive growth opportunities as well as competitor strength.
  • In the 1950s GE produced the famous "blue books" — five volumes of detailed guidance for its managers.
  • GE management has utilized techniques such as leadership development, Work Out, and Six Sigma.
  • Current GE leadership is reemphasizing its scientific research labs and marketing function.
  • General Electric undertakes a constant appraisal process that involves firing its bottom 10% employees each year.
  • GE strives to accomplish its goals with four core values in mind: imagine, solve, build, and lead.
  • General Electric (GE) had used the “Lateral Diversification Strategy” as its growth strategy – marketing new products or services that have no technological or commercial synergies with current products, but which may appeal to new groups of customers.

Physical Evidence

  • Russia has been one European country in which GE has made significant investments including an equipment fleet with more than 1,500 large units.
  • The Middle East is diversifying beyond its oil-based economy with explosive development. GE is enabling growth with crucial investments of infrastructure resources such as oil and gas as well as aviation.
  • GE is helping to build the infrastructure of Indonesia.
  • GE has subsidiaries located in Singapore, Mexico, Munich, China and Ontario Canada

People

  • Jeffery Immelt is the current chairman of the board and chief executive officer of GE.
  • General Electric employs an integrity policy called “The Spirit & The Letter” which every employee supports with a signed pledge.
  • GE employs an ombudsmen process which encourages employees to report unethical activities without fear of reprisal. General Electric implements flexible work arrangements in order that employees may achive a work and life balance.  
  • General Electric provides an employee and retired employee outlet store with discount products.
  • GE utilizes skills-based customer service routing technology, GE directs your call to the service or support rep most qualified to answer your question.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 8

Google Marketing Mix

Google’s search engine indexes billions of pages and gives the search speedy results. The engine ranks websites organically regarding links into a page as a positive endorsement or vote. So if people like your pages they will link to them and the page will get a better rank than sites with fewer in-links.
Google was started in 1998 by Larry Page and Sergey Brin with an initial investment of $100,000. The company went public in 2004 and both founders did very nicely thank you (and became billionaires overnight). At that time the duo employed around 7000 people and grew at a tremendous rate, with some claiming that Google was the fastest growing internet company in the world. In 2008 revenues were more than $21 billion and net profit was $4 billion.
Larry and Sergey are now worth an estimated $6 billion. Their story is synonymous with Google’s history. They were brilliant computer science students. They met when Sergey was helping out at a student open day and Larry was one of the prospective students. They became good colleagues although rumour has that they used to debate quite a lot. Eventually they worked together to build some software that could be used to search the internet. They touted it around the early search engine companies of the time but none of them had the enthusiasm that matched that of Larry and Sergey. So they decided to start their own company called ‘Google.’ Their competitive advantage was that the search engine would give objective and useful results – quickly.

Product

  • Google’s income is made through advertising. When a consumer types in a keyword such as ‘contact lenses’ the search engine will display natural or ‘organic’ results – as it would for any search term. However you will notice that at the top and/or along the right hand side of the results, there are a series of advertisements. These advertisements are paid for by companies. The advertising program is called Google AdWords. See ‘price’ below.
  • Google has a relationship with a number of libraries around the world. One of its goals is to digitize as many books as possible and to include them in search result. This could mean that all books are available to everybody. The key problem with this initiative (apart from the enormity of the task) is that Google does not own the rights to all books – the writers and the copyright owners do, and they are not happy. One of those participants is Stanford University.
  • Google is the world’s most popular search engine.
  • Google Earth enables users to view the world from space. That’s a real opportunity for you and me to experience something that our ancestors never did. However there could be security implications. Like any information – it can be used for good or bad. Anyway you’ll notice that the pictures are often dated and taken some time ago. Privacy is also an issue – do you want a satellite taking pictures of your home for the world to see? In 2009 they launched a revised version of Google Earth which includes the opportunity to view 3D oceans.
  • Critics argue that Google is a tool for plagiarism. Plagiarism is essentially cheating by passing off the work of others as your own when submitting assessments at school, college and university. It is the same as copying and is often punished.
  • Google Scholar – which supports a broad trawl of material such as peer reviewed journals, theses and other academic material.
  • iGoogle – a personalized Google page.
  • The ever evolving list of products includes Google finance, Google news, Google blog search, Google video, YouTube, Google sites, Blogger, Orkut, Google Reader, Google Groups, Google Calendar and Google Docs.
  • In 2008 Google Chrome was launched. Google Chrome is an open source browser.

Google Marketing Mix

Google is a search engine. Search engines are used to search the Internet. However Google is much more than a search engine – it’s a global company that specializes in innovation and technology. The business focuses on information made up mainly from web pages, although today all information is absorbed by the Google sponge including books, videos and music. Let’s not take the search engine for granted – masses of information is available to everyone and we all have the potential to develop our own knowledge and learning. Would you like to take a lesson on the marketing mix?

Price

  • How does Google make money? Through a special advertising program called AdWords. AdWords (see ‘product’ above) are keyword-based advertisements that are bought by companies. So if you have a company that distributes contact lenses, you would bid against other distributors of contact lenses for the highest place (or nearby). By bidding for lucrative keywords this raises the price and Google make money. It’s rather like selling a rare item on eBay; the rarer it is the more money you make; the more bidders that compete for the item the more money you make. Hence the more valuable a keyword the more it will make. Advertisers are making more than their investment in advertising, and this makes it an appealing program for business. It is measurable using basic software so advertisers can work out how much they are making on their investment, which is more complex to do with traditional advertising media.
  • Click fraud is a potential problem with AdWords. Every time you click on an advert Google gets paid by the advertiser. Sometimes competitors will fraudulently click on your advert and this is theft, or fraud. Google has many ways of tackling this and click fraud is less of a problem today.

Place

  • The company is located at Mountain View in California. The site looks very much like a university campus with gyms and cafes. The environment enables employees to maximize their time. The Googleplex is the name given to its HQ.
  • Another way of looking at place is that Google is an online business i.e. it distributes using an the internet as its channel.

Promotion

  • Google uses AdWords itself. Often you’ll see adverts with a link to Google’s own services.
  • They include flyers inside business magazines.
  • They use money off promotions to incentivize advertisers to use AdWords e.g. free $20 worth of advertising.
  • Google Chrome has its own TV advert.
  • Google has a Public Relations function that it uses to proactively manage media.
  • Google will sponsor a $30 million competition for an unmanned lunar landing. The winner must land a rover on the moon; the rover should travel 500 metres, and then send back a video to Earth.

Process

  • Google retains your search term. It collects data on searches to help to refine the search algorithm. So don’t think that you search anonymously. Google keeps your search terms and can link them to the address of your computer, and then to you. Whilst Google may not wish to spy on you, governments may take an interest in searching habits and this is a civil liberties issue.
  • If you use Google mail (Gmail) or Google calendar then you are giving even more information about yourself to Google.
  • Google co-operates with the Chinese government in its censorship of certain search terms and results. Is it becoming a political animal, or just maximizing a business opportunity?

Physical Evidence

  • The name Googol means a number followed by 100 zeros. However the founders mistakenly registered Google as their domain name.
  • The company is located at Mountain View in California (see ‘place’).

People

  • In 2008 Google employed 20,000 people.
  • Many of the original employees of Google came from Stanford and other elite US universities. It employs the top brains, and people like working together Google’s innovative business culture. Employees are encouraged to take advantage of 20% time – that’s one day every week working on their personal pet project. They play sports at lunchtime, with Larry and Sergey enjoying roller hockey in the early days.
  • Its motto is ‘Don’t be evil.’ This comes from its informal, collegiate origins. Google can be a success without losing its integrity. However search engines are based upon algorithms which are loaded with choices about what to value and what to include/exclude.
Google’s mission is to organise the world’s information and make it universally accessible and useful. More.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 9

Hewlett Packard Marketing Mix

The company’s foundation was supported by the demand for electronic equipment and microwaves. Gradually, HP has concentrated its offerings in software and technology services. Hewlett Packard went public in 1957 at $16 per share. In 1980, HP introduced the first personal computer (PC), the HP-85; the first handheld computer HP 75C; and the first touch screen PC HP-150. The company merged with Compaq in 2002.

Product

  • Hewlett Packard provides infrastructure technology, business process outsourcing, technology support and maintenance, networking products and resources, application development and support, consulting and integration services; enterprise information technology infrastructure, and software, as well as personal computing and related access devices, imaging and printing related products and services.
  • In 2007 HP introduced the TouchSmart PC, an all-in-one PC with a touch-screen display; HP also introduced a touch-screen consumer tablet PC. In 2008 In April, HP introduced a full-function, mini-notebook: the HP 2133 Mini-Note PC. designed for the education market.
  • Hewlett Packard produces ProLiant, described as an affordable, entry-level rack and tower server ideal for small to medium businesses, workgroups, remote sites, and high-performance computing environments.
  • HP’s product inventory also includes iPaq Glisten Smartphones, with features such as the ability to schedule meetings, email and text, send photos and manage a contact list.
  • Hewlett Packard Home Networking Products such as the Linksys WRT54G2 Wireless-G router which provides a high-speed Internet connection with several computers.
  • HP supports its products with tailored service packages such as the HP Care Pack designed to cost-effectively upgrade or extend a customers’ standard warranty with easy-to-buy, easy-to-use support packages. They reduce downtime risks with support levels from basic to mission critical.

Hewlett Packard Marketing Mix

Introduction

The Hewlett-Packard Company was originated in January 1939 by Bill Hewlett and Dave Packard, two Stanford University classmates. The company incorporated in 1947. Mr. Packard was appointed as the President and Mr. Hewlett as the Vice President. Would you like to take a lesson on the marketing mix?

Price

  • In 2003 Hewlett Packard introduced another first in pay-per-use utility pricing by offering automated technology that can measure the percent utilization of each central processing unit (CPU) on HP Superdome servers, thereby offering significant advantages to customers during slow periods so they do not pay for processing they do not utilize.
  • Hewlett seeks to design products with features and esthetics aimed specifically at consumers. It will first estimate how much consumers will pay, then design products to sell at that price.

Place

  • Hewlett Packard company headquarters are located at 3000 Hanover Street Palo Alto California.
  • HP has subsidiaries located in Miami, Ontario, Geneva, Tokyo, Houston, Singapore, Victoria and Rivonia.
  • Hewlett Packard operates a worldwide program for independent software vendors, developers and system integrators called the Developer & Solution Partner Program (DSPP).
  • The HP website provides a partner locator service sorted by small and business, home and home office, large business enterprises, as well as type of product needed.

Promotion

  • HP launched a branding initiative called, “One Voice,” to better integrate its vast line of consumer electronics and computer hardware products.
  • HP uses many vehicles to tout its business solutions products and services, including a website with videos and navigation by sorted by business application.
  • Key Hewlett Packard employees host blogs covering topics such as networking, servers, enterprises software and storage.
  • Hewlett Packard employs a “Trade-in Program” whereby a customer can get a free quote on an old product and trade it in on eligible products.
  • HP is promoting an instant $300 savings on its ISS Proliant AMD Servers.
  • Hewlett Packard is offering limited time 0% financing on qualifying products and services.

People

  • Hewlett Packard has approximately 321,000 employees.
  • Mark V. Hurd is the chairman, president and chief executive officer.
  • Hewlett Packard hired Davis Shirk in 2010 to run its worldwide marketing for its business enterprise unit.
  • HP founders based their corporate culture on the integration and reinforcement of critical opposites, known as the Hewlett-Packard Way – creating an environment that celebrates individualism, but at the same time one that is also wholly supportive of teamwork.
  • Hewlett Packard provides a career development website to help guide its upwardly mobile employees.
  • HP partners with other organizations such as InRoads and GEM to expand minority employee representation.
  • Hewlett Packard provides chat, phone and email customer service options.

Pysicial Evidence

  • HPs’ “One Voice” project has a goal of developing a fresh design to its packaging while staying on brand across thousands of product lines and dozens of packaging types.
  • Hewlett Packard boasts on of the most thorough company websites online with a wealth of content ranging from an overview of products to philosophy and customer support.
  • Since 1989 HP has worked to develop environmentally responsible packaging, recently the company teamed with the UC Santa Barbara Bren School of Environmental Science and Management and IoPP to create an up-to-date guideline for the electronics industry.

Process

  • In 1997, Hewlett Packard employed the “Hoshin”process in developing its strategic plan. The Hoshin process is a systematic planning methodology for defining long-range key entity objectives without losing sight of day to day business measures.
  • In 2002 HP divulged the supportive planning behind its planned merger with Compac including its goal of achieving a leadership position in every major segment of the information technology industry.
  • Hewlett Packard has utilized Design for Supply Chain (DfSC) system, which is a systematic, repeatable process which allows HP to consider the impact of decisions: on supply chain partners, including suppliers, manufacturing and logistics service providers.
  • One of CEO Mark Hurd’s first acts as CEO, in flush times, was to cut 15,200 jobs (10% of the workforce), he has encouraged remaining employees to stress operational efficiency.
  • Key pillars of the HP strategy include achieving meaningful innovation with speed and agility.


LESSON 10

Home Depot Marketing Mix

Home Depot is a home improvement retailer. The company sells a wide variety of building materials, home improvement, lawn and garden products. The company sells these products to do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers, and professional customers who include professional remodelers, general contractors, repairmen, small business owners and tradesmen. As of 2009, the Company had 322,000 employees.

Product

  • The company sells a wide assortment of building materials, home improvement, lawn and garden products such as patio sets, kitchen, doors, windows, grills, bath, lighting, fans and appliances.
  • Home Depot provides an inventory of products specifically aimed at professional contractors, such as lumber, paint and painting supplies, plumbing equipment, cleaning and janitorial equipment.

Price

  • Home Depot offers discounted prices via its online Savings Center where it cuts up to 20% off products such as play sets, kitchen faucets, and professional saws.
  • The company has established “special buys” prices on appliances offering 25% discounts on products such as Washer & Dryer sets, and 20% off on Water & Ice Refrigerators.

Place

  • The Home Depot’s main office is located in the US, in northwest Atlanta, Georgia.
  • Home Depot has 3 stores in Georgia, 5 in Florida, three in California, as well as locations in Tennessee, New Jersey, and Indiana.
  • The company has stores in Mexico, Guam, the Virgin Islands and Canada.

Home Depot Marketing Mix

Introduction

Home Depot originated in Atlanta Georgia in 1978 when Bernie Marcus and Arthur Blank formed MB Associates. The company went public in 1981.The Home Depot stock moved from NASDAQ to the New York Stock Exchange three years later in 1984. The company then acquired Bowater’s Home Center. The company opened its first super-sized store in 1986. Would you like to take a lesson on the marketing mix?

Promotion

  • In 2008 Home Depot marketed its “New Low Prices” campaign which featured rebates and discounted prices on over 1000 products.
  • The company unveiled its “Aprons on the Floor” initiative designed to improve customer service by providing an increased presence of available.
  • The company markets special offers via email newsletters, do it yourself workshops, and garden clubs.

Process

  • Estimates are that the “Aprons on the Floor” initiative could allow the assignment of two additional hours of floor time per week for these supervisors. This is estimated to mean 4,000 extra hours of customer-service activities for Home Depot.
  • Home Depot continues to transforming its information technology applications by converting their Canadian business to a new enterprise resource planning platform.
  • Recent associate training and procedures concentrate on helping customers with problem solving, rather than simply securing sales.
  • In recent years Home Depot is emphasized a more formalized decision-making process tempering some of the flexibility regional mangers had operated under.

Physical Evidence

  • The average size of a Home Depot store is about 105,000 square feet of enclosed space. Each store has about 24,000 additional square feet in the outside garden area.
  • The company’s stores stock approximately 30,000 to 40,000 different kinds of products.
  • To improve merchandising of its chemical products area, Home Depot has employed new wayfinding signage program to brighten aisle and make easier to navigate between product categories.
  • The garden center area was revised with New table fixture design with larger and brighter wayfinding signage.
.

People

  • Frank Blake is the Chairman and Chief Executive Officer of Home Depot.
  • Tim Crow was hired as Executive Vice President of Human Resources and assigned to oversee all aspects of human resource management as well as address customer service issues.
  • Home Depot plans to increase the number of full time employees and expand their training, while de-emphasizing the use of part-time workers.
  • In 2008 the company issued success sharing checks in excess of $88 million to our hourly associates a new
    record.
  • The company places strong on value on its associates and provides performance based merit increases as well as a 401(k) matching program.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 11

Ikea Marketing Mix

Price

The basis of pricing for IKEA is value i.e. low prices or no-frills pricing. They are not a premium pricer or a skimmer. So products are designed, raw materials sourced, the products are manufactured, they are distributed, and they sold by retail, within this no-frills low-cost framework.
Home delivery is available although this is at an additional cost to the customer.

Place

The IKEA group is an International Marketing business, which sells furniture and accessories in Europe, North America, Asia and Australia.
IKEA’s main business relates to its retail stores. Many of these stores are in out-of-town locations and do not benefit from the footfall of primary and secondary locations. The stores themselves are very large. Many of the stores even have restaurants, food shops and a Swedish market. Some stores even have a bespoke play area.
IKEA has more than 300 stores.

Promotion

IKEA is one of the world’s largest furniture retail brands. The brand itself is based upon the concept of offering home furnishing products at value prices.
The promotions mix includes TV advertising, sponsorship, newspaper and magazine advertising, and many other elements. Some of its TV advertising is considered controversial whilst others see it as pretty plain. Recent campaigns include the IKEA kitchen party advert ‘Be Happy Inside’ campaign and the kitchen party advert.
Obviously their iconic yellow IKEA logo serves to support the brand.

People

The IKEA brand is based upon strong relationships with customers and customer satisfaction. So serving and working with people is central to IKEA’s business philosophy.
In 2011 its then president Mikael Ohlsson made a statement in their annual report outlining his view on the business and its future. In his view the business would be launching many energy-saving alternatives to conventional light bulbs. He commented that their kitchen range would offer many smart, eco-friendly solutions which would include water-saving taps, appliances and a special system that would sort household waste ready for recycling.
Ohlsson made a commitment to reduce the impact of his business on people, as well as the environment. The business would act responsibly, resources would be used efficiently and costs would be reduced. He also wanted sustainability to become more visible to customers and employees.

Ikea Marketing Mix

Product
IKEA has a wide range of furniture for children’s rooms, kitchens, bedrooms and living rooms. Products include coffee tables, side tables, TV solutions, DVD storage, shelves, sideboards, bookcases, sofa beds, armchairs, leather sofas and fabric sofas, as well as many other products. So within these segments IKEA then subdivides again. For example in children’s bedrooms there will be play accessories, beds, changing tables, nursing equipment and so on. IKEA has in excess of 10,000 products. Would you like to take a lesson on the marketing mix?
Services include restaurants and play areas.

Process

The furniture is made by IKEA itself whereby IKEA makes its own wood-based furniture and wooden components. So for example the business owns forestry sawmills.
The customer drives to the store, selects a product, orders, it, and then collect it, only then to have to drive the product home themselves. This is all part of the low pricing commitment.

Pysicial Evidence

Interestingly IKEA was a business that encompassed sustainability quite early in its strategy. Many of its products are recyclable IKEA has invested in very green energy solutions such as solar power.
Physical evidence for IKEA is its very large stores. They are out of town and offer a huge selection of furniture products. Stores tend to be well-equipped with restaurants, very large car parking, the space to move around and modern display technologies.


LESSON 12

Johnson and Johnson Marketing Mix

Over the years Johnson & Johnson has grown substantially in part due to strategic acquisitions ranging from large ones such as Neutrogena in 1994 and DePuy in 1998, to many smaller ones. From 1989 to 1999, the company made 45 such acquisitions of companies and product lines. Today the firm can boast of revenues exceeding $61,897 million during the financial year (FY) ended December 2009.

Product

  • Johnson and Johnson products are basically in three main categories: Pharmaceuticals, Medical Devices & Diagnostics, and Consumer Health care.
  • The following are examples of the Johnson & Johnson product inventory: Feminine hygiene, Denture care, Contraceptives, Immunology, First aid, Family planning, Oncology, Nutritionals, Diabetes care, Neurology, Vision care, Allergy cold and flu treatment, Women’s Health, Medical devices and diagnostics.
  • Price

  • In the United States, Johnson and Johnson strives to keep their net price increases for health care products within the Consumer Price Index (CPI).
  • Johnson and Johnson works with governments to develop differential pricing approaches to help more people access their medical products. Johnson & Johnson companies have agreements with the United Kingdom for VELCADE ® (bortezomib), a treatment for multiple myeloma, and with France for RISPERDAL® CONSTA® (risperidone long-acting injection) a medication for the symptoms of schizophrenia. Companies and government agencies are also entering other types of risk-sharing agreements in order to help people gain access to new therapies sooner.
  • The following are examples of Johnson and Johnson consumer product prices: Bengay Pain Relief $12.99, (at Amazon), Listerine Oral Care $7.49 (Next Tag), Splenda Sweetener $7 (Drusstore.com).Tylenol Rapid Release $12.95 ( Allegro Medical.com ).
  • Place

  • These are some companies that sell Johnson and Johnson products wholesale: Over the Counter Wholesale.com, WUZ Group, ShopatHome.com
  • Johnson and Johnson products can be found at the following retail outlets: Target, Walgreens, WalMart, Vons and Eversave, to name but a few.
  • Johnson and Johnson Marketing Mix

    The roots for the Johnson & Johnson Company run deep. The company began in1886. It incorporated one year later. By 1896 it had released its first major product of note – a sterilizing technique for catgut sutures.
    The firm branched out in 1919, with the establishment of an affiliate in Canada, and in Britain in 1924. Next came a public launch and a listing on the New York Stock Exchange in 1944. Would you like to take a lesson on the marketing mix?

    Promotion

  • Johnson and Johnson offers special discount coupons on products such as baby care, and contact lens.
  • Johnson and Johnson has run a “Beauty for All Ages” rebate promotion on Coupons.com and some of the campaign products are available at Walgreens and may also include buy one get one half off discount as well.
  • Johnson & Johnson is involved with many causes and advertising campaigns that encourage healthy lifestyles. Key initiatives include: The Campaign for Nursing’s Future, Having a Baby Changes Things, and Because We Care We Act (China).
  • Process

  • Johnson and Johnson employs what they call a “decentralized management approach”. Employees are encouraged to be “entrepreneurial” with the understanding that they will benefit from focusing on customer needs and providing solutions.
  • Johnson and Johnson seeks to turn insights into innovative new products and sometimes whole new businesses. Their goal is to capitalize on scientific breakthroughs, marketing insights and manufacturing expertise easily across the full range their businesses. With more than 250 operating companies have a local window into emerging customer needs, scientific developments, and technologies throughout the world.
  • The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations and allocation of the resources of the Company. This Committee oversees and coordinates the activities of the Consumer, Pharmaceuticals and Medical Devices and Diagnostics business segments. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located.
  • Physical Evidence

  • The Johnson & Johnson Headquarters is located at One Johnson & Johnson Plaza, New Brunswick, New Jersey.
  • The Johnson& Johnson Consumer Division is located at 199 Grandview Road, Skillman New Jersey.
  • The Ortho-Biotech Division is located at 700 Route 202 Raritan, New Jersey.
  • The Lifescan Division is located at 1000 Gibralta Drive, Milpitas, California.
  • The VistaKon Division is located at 7500 Centurion Pkwy, Jacksonville, Florida.
  • The Endo Surgery Division is located at 4545 Creek Road Cincinnati, Ohio.
  • The Independence Technology Division is located at 40 technology Drive, Warren New Jersey.
  • Company Subsidiaries, Codman and Shurlett as well as De Puy Acromed are located at 325 Paramount Drive Raynham Massachusetts.
  • The Johnson and Johnson logo is based on the signature of James Wood Johnson, one of the two brothers originally who founded the company.
  • Johnson & Johnson maintains a presence online via a number of websites http://www.jnj.com/connect/others/sitemap/ which provide information on company values, and management approach.
  • Another Johnson and Johnson website http://www.jnj.com , provides detailed information on various consumer products such as Listerine or Tylenol.
  • People

  • William C Weldon is Chairman & Chief Executive Officer of Johnson & Johnson.
  • Dominic J. Caruso is the Chief Financial Officer and Vice President of Finance.
  • Johnson and Johnson has a Global Diversity and Inclusion program with a goal of achieving a skilled, high performance workforce that is reflective of the diverse global marketplace (workforce).
  • Johnson & Johnson was ranked #2 among Diversity Inc. Magazines Top 50 Companies for Diversity.
  • The company has ranked high Working Mother Magazines’ Top One Hundred Companies for Working Mothers
    or 24 years.
Johnson & Johnson was founded more than 120 years ago on a revolutionary idea: Doctors and nurses should use sterile sutures, dressings and bandages to treat peoples’ wounds. Since then, we’ve brought the world new ideas and products that have transformed human health and well-being. Every invention, every product, every breakthrough has been powered by generations of employees who are inspired to make a difference. More . . .
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 13

Kroger Marketing Mix

In 1904 the company proved a leader in the industry again by establishing it as one of the first companies to sell groceries and meat under one roof. By 1929, Kroger was operating 5,575 stores. The company opened its first superstore in Barberton, Ohio, in 1972.
In 2008 Kroger partnered with The Little Clinic to opened walk-in medical clinics and consumer health solutions inside.

Product

  • Kroger operates 15 dairies and three ice cream plants.
  • The company operates three meat plants.
  • Kroger grocery Items include but is not limited to: meat, poultry, cereal, vegetables,  soft drinks,  wine, beer, canned goods, snacks and packaged foods
  • In addition to food, Kroger store items include: automotive products, flowers, office and school supplies, kitchen gadgets and apparel, as well as home electronics, yard furniture and a pharmacy.
  • Kroger private label brands include: Private Selections, Naturally preferred, Active Lifestyle, Kroger Brands and Kroger Value.

Price

  • In 2009 Kroger invested an additional $28 million to reduce prices in its meat, produce, and beauty and health departments to save shoppers money on hundreds of popular items and help them weather the economic slump.
  • Kroger’s increased emphasis on developing cheaper private label products and prepared foods is compatible with consumers desire to eat more meals at home, and forgo higher priced items.
  • The company’s success with private brands puts it in a strong bargaining position with suppliers seeking cost increases.
  • Kroger utilizes data from its loyalty card program link our customers to savings on groceries, fuel, pharmacy needs, general merchandise and corporate brands and tailor unique coupon offers.
  • Increased sales at its Kroger sushi bars, hot soup, sandwich counters and refrigerated soups and entrees also reflect a shift in consumer behavior towards the price savings of prepared foods over eating out of the home.

Kroger Case Study

Introduction

Kroger Store originated in 1883, established by Barney Kroger of Cincinnati, Ohio.
In 1901, Kroger broke new ground that same year by becoming the first store to have its own bakery. The company was incorporated in 1902 as The Kroger Grocery and Baking Company. Would you like to take a lesson on the marketing mix?

Place

  • Kroger is headquartered in Cincinnati, Ohio
  • The company has subsidiaries located in Colorado, Kansas, Texas, Roanoke, Louisville, Tennessee, Atlanta, Indianapolis, Salt lake City, Arizona, Denver, Compton, Belleview and Westerville.
  • Kroger distribution centers are located in Delaware, Ohio, Memphis Tennessee, West Liberty, Ohio, and Simpsonville South Carolina.
  • Kroger’s Fred Meyer distribution centers are found in Clackamas, Oregon, Puyallup Washington, and Chehalis, Washington.
  • Kroger ha four Ralph’s distribution centers in California: Compton, Los Angeles, Riverside, and Paramount.
  • Kroger also has Peyton distribution centers they are found in Bluffton, Indiana, Cleveland, Tennessee, and Portland, Tennessee.
  • Kroger offers prescription refills, flowers, gifts, gift cards, digital photo developing and hard-to-find products on their websites.

Promotion

  • Kroger’s “Digital Choice Rewards” lets customers obtain free music, movies and ringtones when they use their shopper’s card to by 10 participating items.
  • The company is offering special savings on items in association with the 50th Daytona 500.
  • In 2009 Kroger ran a “Free Gas and Groceries” gift card contest promotion
  • Kroger offers weekly ads savings updates, via email.
  • Kroger is running a “March to Savings” yellow tag promotion in participating stores.
  • Kroger’s “Right Store, Right Price” slogan is consistant with its Customer 1rst Strategy.

People

  • David Dillion is the Kroger company chairman and chief executive officer.
  • W. Rodney McMullen is Kroger’s chief operating Officer.
  • Kroger employs more than 334,000 associates who serve customers in 2,468 supermarkets and multi-department stores in 31 states
  • Kroger has executed labor agreements that include cost-reducing measures such as relaxed work rules, wage progression extensions and continue to pursue fair and balanced contract settlements.  

Pysicial Evidence

  • Kroger operates 40 manufacturing plants, primarily bakeries and dairies. In addition to the supermarkets, it operated through subsidiaries, 777 convenience stores and 374 fine jewelry stores.
  • Its fine jewelry stores located in malls are operated in leased locations.
  • In addition, Kroger also oversees 87 convenience stores were operated through franchise agreements.
  • Kroger’s company website provides information on healthy living tips, recipes, and special savings promotions.  

Process

  • Kroger operates its own fleet of trucks and trailers to distribute products to its various stores, in addition to a contract with the trucking company, First Fleet.
  • Food distribution and buying takes place under various subsidiaries and divisions. These include: Inter-American Products – private label goods and Wesco Foods – produce buying.
  • Kroger has a 3-tiered distribution system. The 2nd and 3rd tiers, internally known as "Peyton’s", service retail stores and provide promotional and seasonal products. Kroger operates five "Peyton’s.
  • Kroger store has core values that guide its decision-making include: honesty, integrity, respect, diversity, safety, inclusion and involvement.
  • Kroger’s overriding plan is found in its “Customer 1st strategy”.


LESSON 14

Marketing Mix

What is the marketing mix?

The marketing mix is one of the most famous marketing terms. The marketing mix is the tactical or operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical evidence.

The marketing mix is . . . The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market.
Kotler and Armstrong (2010).
The concept is simple. Think about another common mix – a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!
It is the same with the marketing mix. The offer you make to your customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price.
Another way to think about the marketing mix is to use the image of an artist’s palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every hand painted picture is original in some way, as is every marketing mix. Let’s look at the elements of the marketing mix in more detail. Click on the links to go to the lesson on each element.

Price

Price is the amount the consumer must exchange to receive the offering .
Solomon et al (2009).
The company’s goal in terms of price is really to reduce costs through improving manufacturing and efficiency, and most importantly the marketer needs to increase the perceived value of the benefits of its products and services to the buyer or consumer.
There are many ways to price a product. Let’s have a look at some of them and try to understand the best policy/strategy in various
situations.

Place

Place includes company activities that make the product available to target consumers.
Kotler and Armstrong (2010).
Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
Marketing Mix

Product

Product means the goods-and-services combination the company offers to the target market.
Kotler and Armstrong (2010).
For many a product is simply the tangible, physical item that we buy or sell. You can also think of the product as intangible i.e. a service.
In order to actively explore the nature of a product further, let’s consider it as three different products – the CORE product, the ACTUAL product, and finally the AUGMENTED product.
The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives.

Promotion

Promotion includes all of the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products.
Solomon et al (2009).
Promotion includes all of the tools available to the marketer for marketing communication. As with Neil H. Borden’s marketing mix, marketing communications has its own promotions mix. Whilst there is no absolute agreement on the specific content of a marketing communications mix, there are many promotions elements that are often included such as sales, advertising, sales promotion, public relations, direct marketing, online communications and personal selling.

Physical Evidence

(Physical evidence is) . . . The environment in which the service is delivered, and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
Zeithaml et al (2008)
Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following buildings, equipment, signs and logos, annual accounts and business reports, brochures, your website, and even your business cards.

People

(People are) . . . All human actors who play a part in service delivery and thus influence the buyers’ perceptions; namely, the firm’s personnel, the customer, and other customers in the service environment.
Zeithaml et al (2008).
People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the individual needs of the person consuming it.

Process

Process is) . . . The actual procedures, mechanisms, and flow of activities by which the service is delivered – this service delivery and operating systems.
Zeithaml et al (2008).
There are a number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example – to achieve a 30% market share a company implements a marketing planning process. However in reality it is more about the customer interface between the business and consumer and how they deal with each other in a series of steps in stages, i.e. throughout the process.


LESSON 15

Nintendo Marketing Mix

Price

The pricing of games is quite interesting. Nintendo will use a series of pricing strategies throughout the life of the product. Prior to launch the business will take orders for new games and consoles, which will all be premium priced and the business will apply a price skimming strategy. As the product becomes adopted they will begin to reduce price to competitive parity, and as they reach the end of their life-cycle games will be priced promotionally until they hit the bargain bucket. Who knows whether in the future they will become nostalgia products or even antique rarities?

Place

The product is distributed in a number of ways. Nintendo manufactures products and then distribute it via wholesalers to retailers to you. Some very large national accounts will be dealt with directly because of the huge volumes they buy. Nintendo is available on the high Street in all key electrical and gaming retailers, as well as being sold online by well-known retailers such as Amazon.com and play.com, and you might find one or two second-hand bargains on eBay.com. Distribution is mature for Nintendo and there are few avenues to market which they do not pursue.

Promotion

Nintendo will launch new products. For example, when the company launched the Nintendo 3DS there were a series of special launch days, and even some midnight launch events. Fans of the Nintendo product get the chance to have a go on the new Nintendo system, early purchasers get a free carrying case, and there are always free giveaways such as T-shirts and beanies.
The launch campaign demonstrates a huge effort on the part of Nintendo. For example, more than 85% of the UK audience saw the Nintendo 3DS campaign called Believe Your Eyes. The campaign itself was to emphasise the benefits of the 3D experience. The campaign was a mash up of consumers experiencing the product and innovative advertising.

Nintendo Marketing Mix

Would you like to take a lesson on the marketing mix?

Product

Nintendo operates in the manufacturing and distribution of innovative, interactive entertainment products. For example the business markets home entertainment, handheld devices and also provide the hardware and software which is necessary for the use of electrical products.
Popular amongst its product lines over the years have been GameCube, GameBoy, Wii, Nintendo 64, Super NES, Nintendo DS, Super Mario, Pokémon, Brain Age and many other well-known gaming brands.
In 2012 it is rumoured that Nintendo will partner Fuji television and Nippon television to bring full 3-D television shows to its Nintendo 3DS. The content is free, although consumers will need to watch adverts.
The launch of the Wii U controller will make it much more interactive. It has a central, handheld touch screen and will show different media to supplement and enhance the experience on your TV. It has a High Definition (HD) platform. Reports indicated that it will be launched somewhere between June 2012 and September 2012, although the price to you the consumer is yet to be announced.
This is nothing new. Back in 2000 Nintendo spent in excess of $200 million to launch their new Nintendo Wii product. Much of this brand was actually targeted at non-gamers, so not only trying to tempt gamers from competitors products, but also attacking new targets players such as older people and women. People playing Nintendo Wii on TV ads are not your typical perfect people!

People

Being a manufacturer, Nintendo don’t really have public facing employees, certainly not facing the public in the retail environment. This is done by their distributors. However in 2010 Nintendo rewarded employees with an £11,000 bonus per employee which is very generous for Japanese workers, comparing with a meagre £8000 for Honda workers. According to Euro gamer.net the average salary for a Nintendo worker aged 35 to 39 years old was about £38,000 per annum including bonuses.

Process

Most processes revolve around the design, development, manufacturing, marketing and post-purchase services for each Nintendo product. There will be processes for ordering new products before launch, and for returning faulty products should they occur. There will also be the customer life-cycle which hopefully will see Nintendo customers remaining loyal over a long period of time.

Pysicial Evidence

The Nintendo logo and brand is one aspect of its physical evidence. You must be familiar with the trademarked Nintendo term surrounded by a curved oblong, generally in red. Others would include super Mario Bros and Pokémon.
At an initial glance their buildings are pretty much square boxes, and do not replicate the campuses of Microsoft and Google in terms of their physical presence. The closest that they have come to some physical evidence is their Kyoto-based research and development headquarters, which was built in 2009.


LESSON 16

Pepsi Marketing Mix

In November 2007, PepsiCo announced a restructuring initiative to split the company into three units, one for food in the US, one for beverages in the US and one for food and drinks abroad.

Product

  • Beverage ProductsDiet Pepsi, Gatorade, Mountain Dew, Thirst Quencher, Tropicana, Aquafina Bottled Water, Sierra Mist.
  • Savory Food Snacks – Fritos Corn chips, Cheetos, Ruffles Potato Chips, Lays Potato Chips, Tostitos, Doritos.
  • Other Food Products – breakfast cereals, cakes and cake mixes.
  • PepsiCo recently created Baked Snacks North America Business Unit to meet consumer’s interest in more nutritious snacks and foods.

Price

  • Expenses related to transportation, ingredients and labor continue to pressure the beverage industry toward price increases.
  • PepsiCo’s drink pricing strategies may be heavily influenced by its working relationship with Wal-Mart whose low price themes put pressure on PepsiCo to hold down prices.
  • The company strives to cut or maintain current prices by cutting overhead and re-engineering the manufacturing process.
  • PepsiCo is expanding its use of inexpensive and recyclable plastic bottles; nevertheless the company has instituted some price increases in recent years, specifically in its overseas markets such as New Delhi and Duba.

Place

  • PepsiCo is primarily a US based company with approximately 52% of its revenues located in the states.
  • PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales.
  • In addition the company plans on major capital initiatives in Brazil and Mexico.
  • The company is also acquiring Russia’s leading Juice Company, Lebedyansky, and V Water located in the United Kingdom.

PespsiCo Marketing Mix

In 1965 Herman W. Lay of the Frito-Lay Company and Donald Kendall of Pepsi-Cola formed PepsiCo. In 1986 operations were combined under PepsiCo Worldwide Foods and PepsiCo Worldwide Beverages. In 2001 PepsiCo merged with Quaker Oats to form a $25 billion company. PepsiCo restructured in 2007 dividing the company into three units’ food in the US, Drinks concentrated in the US and Food and Drinks marketed abroad. Would you like to take a lesson on the marketing mix?

Promotion

  • PepsiCo instituted a so called Pepsi Stuff promotion whereby customers could accumulate Pepsi Points from buying various products these points could be used to by other products, most recently AmazonMP3.
  • A recent promotion involving the NY Yankees was not well received when not enough free tickets were made available.
  • In 2008 PepsiCo employed Tiger Woods to promote a Gatorade brand called Gatorade Tiger.
  • PepsiCo continues is promotional association with the NFL and the Super Bowl specifically marketing Pepsi and Doritos.
  • In 2009 Pepsi launched its “Pepsi Throwback” campaigned offering a drink with the sugar content of its original product.

People

  • Indra K. Nooyi is the President of PepsiCo in addition to the company’s CFO
  • Recently the Board of Directors elected Steven S Reinemund chairman of the board and chief executive officer.
  • PepsiCo fosters a corporate culture that values employees and emphasized diversity in the workplace.
  • PepsiCo is named to the ‘Best Companies for Multi Cultural Women’ list by Working Mother magazine
  • PepsiCo is recognized at two events for its dedication to Talent Sustainability and dedication to Asian American employees—2009 Best Companies for Asian Pacific Americans from Asian Entrepreneur, Top 10 Companies for Asian Americans from AMBA
  • PepsiCo has won  the ‘Workplace Excellence’ Award at Out & Equal Workplace National Summit
  • PepsiCo is listed in the top 20 ‘Ideal Employer MBA Ranking’ in Fortune magazine

Pysicial Evidence

  • PepsiCo’s website provides a wealth of information about the company including the firm’s rich history and manufacturing process.
  • PepsiCo is an industry leader in packaging – helping to promote and implement standards for sustainable packaging.  
  • PepsiCo has a packaging philosophy: reduce, reuse, recycle, remove and renew.

Process

  • PepsiCo is in the process of removing high fructose corn syrup (HFCS) from both the traditional.
  • The Frito-Lay department will soon produce  Lay’s Kettle with natural flavors, and to boost the whole grain and fiber content, respectively, of its Tostitos and Sun Chips brands.
  • Flavor concentrates are shipped from special Pepsi-Cola manufacturing plants, The bottles and cans that will eventually be filled with Pepsi are manufactured elsewhere, and shipped to Pepsi plants wrapped and sealed for protection, Labels, cartons, caps, the carbon dioxide used to carbonate soft drinks and other supplies are also produced for Pepsi by other companies, Once on the belt, cans are part of an enclosed, controlled environment that keeps them sanitary and helps ensure quality throughout the filling process, Pepsi-Cola takes special care to purify the water it uses – a procedure that involves careful treatment, filtration and purification, Pepsi-Cola flavor concentrate is carefully combined with sweeteners and other ingredients in large stainless steel mixing tanks. Quality control audits performed by specially trained technicians are a critical part of the manufacturing sequence, In the last step of the manufacturing process, as the now-rinsed cans reach the filler, they’re reinverted, immediately filled and the lid is applied – at an average speed of 1,200 cans per minute.


LESSON 17

Ryanair Marketing Mix

Its charismatic boss Michael O’Leary has a business model with a central focus on cost reduction (and making money of course!). In around 20 years he has taken Ryanair from a single plane company to become the largest airline in Europe. He had a vision and achieved it through masterful leadership. So how did he do it? How does Michael O’Leary retain his narrow cost focus niche strategy in the face of intense competition? The business simply has lower costs and those costs are passed on to their passengers in the form of low fares.
The branded airlines argue that passengers are willing to pay more for a better level of service. You can pre-assign seats. You get food and drink onboard, and can choose a higher level of service e.g. business class. However the large flag carriers have taken notice of the low-cost model and have employed it as part of their own more differentiated business model.
In 2009 the company settled for 30% of its local Irish rival Aer Lingus after a prolonged takeover bid. Tough trading conditions meant that Ryanair made its first annual loss in 2008/9. O’Leary put this down firmly to rising fuel costs (as did British Airways in the same year). The company also needed to take into account the burden of purchasing its stake in Air Lingus. So in reality things are looking good for Ryanair and its budget operation – since the business aimed to fly double the amount of passengers 2009/10.
Let’s take a closer look at Ryanair’s marketing mix:

Product or Service.

  • Low cost, no frills air travel to European destinations.
  • There is no free food or drink onboard. Food and drink are income streams. You buy them onboard, or you don’t – take your own food and drink if you like.
  • There are other income streams – or ancillary revenue. The company has deals with Hertz car rental, and a number of hotel businesses. So Ryanair takes a commission on ‘up selling’ i.e. ancillary revenue. Other examples include phone cards and bus tickets. About 16% of profit is made this way. This keeps costs lower.

Ryanair Marketing Mix

Ryanair is the European low cost airline. Low cost or no frills marketing strategies are of great interest to marketers since the marketing mix employed tends to run in opposition to what makes a great brand – and Ryanair is a great brand and a very successful business. In a nutshell Ryanair sells the cheapest tickets that you can buy (on most occasions). If you’d like to learn more about this topic then take a look at our marketing mix lesson. Otherwise please read on. Would you like to take a lesson on the marketing mix?

Price

  • Ryanair has low fares.
  • 70% of seats are sold at the lowest two fares.30% of seats are charged at higher fares. The last 6% are sold at the highest fare
  • Ryanair occasionally get in trouble with bodies such as the Advertising Standards Authority (ASA) in the UK over differences between advertised and actual price – in fairness to Ryanair these are rare mistakes.

Place

  • Ryanair does not use travel agents so it does not pay agency commissions. It uses direct marketing techniques to recruit and retain customers, and to extend products and services to them (i.e. Customer Relationship Management). This reduces costs.
  • You book online over the Internet. This saves them 15% on agency fees.
  • They are based in Stansted in Essex – which is known as a secondary airport. It is new and accessible. It is cheaper to fly from Stansted than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.
  • Many of Ryanair’s destination airports are secondary. For example if you fly to Copenhagen (Denmark) you arrive in Malmo (Sweden) – although it is only a short coach trip over the border. Secondary airports, which tend to be smaller regional airports, depend upon this single carrier – some (it is rumored) paying up to £100, 000 for each additional new route. Costs are lower and aircraft can be turned around faster.
  • Keeping aircraft in the air as much as possible is another important part of the low cost jigsaw. However, the company has been challenged by the European Union in relation to anti-competition laws.

Promotion

  • They spend as little as possible on advertising.
  • They do not employ an advertising agency. Instead all of the advertising is done in-house. In fact O’Leary himself oversees much of the promotion of Ryanair. They use simple adverts that tell passengers that Ryanair has low fares.
  • Ryanair employs controversy to promote its business. For example in 2009, the company reasoned that passengers would be charged £1 to use the toilets on board. O’Leary reasoned that passengers could use the terminals at either the destination or arrival airport. This would speed things up. It was reasoned that this is what passengers wanted – since they did not want other passengers leaving their seats and walking the aisles to go to the toilet. O’Leary also argued that larger passengers should be charged more since they took up more room – again it was reasoned that this is what the majority of passengers wanted.
  • Some of their aircraft are decorated in the livery of advertisers e.g. News of the World, Jaguar and Kilkenny (beer).

People

  • Pilots are recruited when they are young as pilot cadets. They work hard and take early promotions and then move on after 10-years or so to further their careers.
  • Cabin crew pay for their uniforms to be cleaned. They invest in their own training. They are mainly responsible for passenger safety as well as ancillary revenues onboard.

Physical Evidence

  • They pay as little as possible for their aircraft. Planes are the most expensive asset that an airline can make. They get big discounts on aircraft because they buy them when other airlines don’t want them, for example after September 11th, or on the invasion of Iraq and Afghanistan. Aircraft manufacturers cannot simply stop a supply chain in minutes. If orders are being cancelled or delayed, this is when to buy. It was rumored within the industry that Ryanair was buying Boeing 737s – list price around £40,000,000 (forty million pounds) – with up to a 50% discount.

Process

  • There is no check in. You simply show your passport and supply your reference number.
  • You cannot select a preferred seat. It is first come, first served. This aids speed.
  • There are no air bridges (the tunnel that connects to the side of the aircraft when to board it). You walk or are bused to the aircraft.
  • Baggage is deposited directly onto the terminal – it’s quick. However if your bag is broken don’t expect high levels of customer service.
Beyond any doubt, Ryanair is one of the strategic marketing successes of the last decade. Undoubtedly synergized by Michael O’Leary – the low cost strategy that it employs is remarkable and industry changing. In many ways the business has looked closely at all aspects of it markets and operations to remold the industry and customer expectations in a unique way. This is how Ryanair has applied the marketing mix.
Ryanair is the World’s favourite airline with 44 bases and 1100+ low fare routes across 26 countries, connecting 157 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft with firm orders for a further 64 new aircraft (before taking account of planned disposals), which will be delivered over the next 2 years. Ryanair currently has a team of more than 8,000 people and expects to carry approximately 73.5 million passengers in the current fiscal year. More . . .

Bibliography

Ryanair’s route to riches, BBC The Money Programme, First transmitted 4th June 2003.
Ryanair reports first annual loss – BBC New Online – 2nd June 2009.
Aer Lingus to vote on board pay – BBC News Online – 5th June 2009.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 18

Sony Marketing Mix

Four years later the company developed and produced Japans’ first magnetite-coated, paper-based recording tape, called Soni-Tape. In 1955, the firm began using Sony logo on Totsuko products. The group also launched Japan’s first transistor radio, the TR-55, during the same time. In 1958, the group changed its name to Sony.
Today Sony has developed ‘TransferJet’, a proximity wireless transfer technology enabling the high speed transfer of large data files between electronic devices such as mobile phones, digital cameras, YVs, digital video cameras, computers and the company recorded revenues of JPY7,730 billion ($77.3 billion) during the financial year ended March 2009.

Product

  • Audio – Home, portable and car as well as personal navigation systems
  • Video – Video cameras, digital cameras, DVD/Video players & recorders
  • Televisions – LCD televisions, Projection televisions CRT-based televisions
  • Information and computers – personal computers, printers
  • Semiconductors- LCD, CCD, and other types of semiconductors
  • Games – PlayStation
  • Television and motion pictures
  • The company offers a Sony Card and a PlayStation card, these are rewards cards credit cards which allows customers to earn redeemable points when they purchase Sony products and services

Price

  • HVRA1U C-MOS 1080i HDV Camcorder – Broadcast & Promotion- U.S. List price -$2,750.00.
  • XCL5005 5 Mega Pixel PoCL B/W Digital Video Camera- Industrial & Professional U.S. List price – $4,377.00.
  • Total Performance Projector VPLDX10-2500 Lm 3LCD XGA Mobile Projector-U.S. List Price – $1,410.00.
  • Medical Equipment Monitors & Displays GXDL52H1 52inch Full Hd Ruggedized LCD-U.S. Listed Price – $5,700.00.
  • Security Systems – SNCCH140 Network 720p HD Fixed Camera with View-DR Technology U.S. List price – $1,298.00.
  • Video Conference Devices PCSG70S – 4 Mbps High-End Video Communication System (Codec Only) U.S. List price $8,200.00

Sony Marketing Mix

Introduction

Sony was founded in 1945 by partners Masaru Ibuka, (an engineer), and Akio Morita, (a physicist),and was originally named Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering). The firm was launched in Nihonbashi, Tokyo. Would you like to take a lesson on the marketing mix?

Place

  • Sony has an online presence in several formats, for example http://pro.sony.com/bbsc/home.do provides information on products and their prices. The site also has information on corporate applications for its offerings.
  • Sony Product distributors that sell selling to VARs + System Integrators include: ASI Corp, Avnet Inc. and Bell Microproducts, Microland Electronics Corp.
  • Wholesale distributors of Sony Products include but are not limited to : Best wholesale co. Ltd, Dongsheng International Trade Co. Ltd, Denzuke Network Sdn. Bhd., Front-Page Trade Co., Ltd.

Promotion

  • The company offers a Sony Card and a PlayStation Card, these are rewards cards credit cards which allows customers to earn redeemable points when they purchase Sony products and services.
  • Sony implements a discount coupon program offering 25% to 50% discounts on products such as PC speakers, Blue-Ray Disc Players, notebooks and laptops.
  • Sony’s Rebate Zone website provides rebates such as the following $500.00 rebate (by mai)l following the purchase of a Sony HVR-V1U HDV Camcorder or a Sony HVR-DR60 Hard Disk Recorder/Player or a $300.00 rebate by mail following the purchase of a Sony HVR-A1U HDV Camcorder.

Process

  • Sony employs an umbrella branding strategy by placing the product name along with corporate name. This strategy lets the product to assume its own identity and positioning, but also draws strength of the corporate brand. The goal is to bolster consumer confidence in the product. Sony has used this strategy to launch new products.
  • The company’s focus on its research and development (R&D) activities is evident in its expenditure of over $5 billion in 2009. The strong focus on R&D helped the company to launch technologically innovative products in the market. The strong focus on R&D would thus enable the group to revive its product base as needs are indicated by customers. Examples of this strategy include the introduction of BRAVIA, ZX1, a thin, lightest LCD TV featuring LED edge lighting; The VAIO P Series notebook computer (the world’s lightest 8-inch notebook PC) and the Cyber-shot HX1 compact digital camera (which allows users to capture wide-angle of 224 degrees views).
  • Sony operates from a philosophy it labels “uniquely Sony”. The company seeks to facilitate the development of its staff but spurs employees to manage their own career and but to avoid pigeon-holing. This is a microcosm of the company’s desire to foster adaptability. The company’s broad outlook extends to its corporate responsibility.
  • The desire to make its hardware and interfaces that are easy to use was a catalyst behind recent reorganization of electronics into “Personal” and “Home categories. The company has reaffirmed its commitment to make the “Home” category more user-friendly.
  • Sony has adopted a “Company of Committees” governance system in order to go beyond minimum compliance with legal requirements and to add additional transparency. To accomplish this, the company has revised some Directors’ functions to facilitate the proper functions of statutory committees.
  • Sony has a recently reorganized in order to further improve responsiveness and customer service. It has established a network of services tailored to the needs of local customers. The move acknowledges the growing complexity of its products. The company formed Sony Customer Services, Inc and has intiated special employee training to enhance its ability to respond to customers inquiries and requests.
  • Sony seeks to instill corporate social responsibility policies throughout its supply chain. For example Sony established the Green Partner Environmental Quality Approval Program for Sony suppliers. Sony maintains a common global quality standard for parts by purchasing electronic parts only from suppliers who have passed an audit and have been certified as Green Partners.

Physical Evidence

  • Sony Corporation Headquarters is located at 1-7-1 Konan, Minato-ku Tokyo
  • Other locations of subsidiaries include Sony Corp of America at 550 Madison Avenue in New York, Sony Electronics of Latin America 5201 Blue Lagoon Dr Suite 300, Miami Florida, and Sony Electronics 12451 Gateway Dr, Fort Myers
    Florida
  • In 1994 Sony opened its Wonder Technology Lab which is a free interactive technology and entertainment museum located at 56th street and Madison Avenue in New York City. The Museum is open to all ages.
  • Sony Plaza at 56th Street and Madison Avenue in New York City. The company compliments the facility with a website at http://wondertechlab.sony.com/index.html
  • Sony’s main company website provides helpful information ranging from service and support, music, electronics and gaming as well as a range of shopping alternatives.

People

  • Howard Stringer is Chairman, CEO and President of Sony
  • Hiroshi Yoshio is Executive Deputy President of Consumer Products & Devices Group (NPSG).
  • Kazuo Hirai is Executive Vice President of Networked Products & Services Group
  • Sony employs 167,900 people world wide
  • Sony has an ongoing talent development initiative . In 2008, the company created 13 global talent directors who are assigned to identify promising individuals in all businesses and regions and develop them into future business leaders. This initiative also includes a job rotation project with individuals moving through a schedule of job assignments designed to give them exposure to a variety of businesses and regions.
Disclaimer:
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 19

Starbucks Marketing Mix

Current CEO Howard Schultz joined the company in 1982 and began pressing to have Starbucks provide coffee, espresso drinks as well as sell coffee beans in its stores. Schultz left to start his own store called Il Giornale. This operation experienced success with Schultz suggested offerings. Eventually Starbucks was sold to Il Giornale which then rebranded itself as Starbucks. By the time the firm went public in 1987 it had expended to more than 160 outlets.
Today Starbucks is in more than 55 countries and boasts annual revenues in excess of $7 million dollars for its U.S. operations, as well as 1.9 million from its international operations.

Product

  • Starbucks specializes in coffee and related beverages. The company sells coffee, Italian-style espresso beverages, cold blended beverages, as well as a selection of premium teas. In addition, the firm also sells coffee-related accessories and equipment.
  • Tazo Tea is the Starbucks brand. There’s many, many different flavors and you can get them as iced teas, lemonades, lattes, hot or cold.
  • Some of their most popular teas fall into the Chai tea category. It’s a spicy black tea with cardamom, cinnamon, black pepper and star anise.
  • An espresso is a strong, black coffee that is brewed by forcing hot water through coffee grounds. It’s more concentrated, has more caffeine than regular
  • A Starbucks Latte is Espresso with steamed milk and foam.
  • A Caramel Macchiatto is a vanilla latte with less vanilla, extra foam and a caramel sauce on top.
  • A Starbucks Cappuccino is similar to a latte but with more foam.
  • Starbucks Mocha is an espresso, steamed milk and chocolate with whipped cream on top.
  • A Starbucks Coffee Frappuccino is Starbucks coffee, milk and blended with ice.
  • An example of Starbucks blended creams is the pumpkin spice frappuccino which includes pumpkin and traditional fall spices, mixed with milk and blended with ice, then topped with whipped cream and pumpkin spices.

Starbucks Marketing Mix

Introduction

Jerry Baldwin, Zeff Siegl, and Gordon Bowker formed Starbucks in Seattle, Washington in 1971. Its origin is said to be inspired by another coffee lover and store Owner; Alfred Peet. Starbucks actually began by purchasing coffee from Peets, but eventually began buying directly from growers. Would you like to take a lesson on the marketing mix?

Price

  • On September 22, 2010 Starbucks announced that it would be raising prices due to the increasing price of coffee beans, dairy and other raw material.
  • Starbucks expects to maintain or lower the price of some of its most popular beverages, including certain espresso beverages; and, in most markets, its popular $1.50 tall brewed coffee; and to raise prices of labor-intensive and larger-sized beverages
  • Unlike the coffee, tea prices aren’t based on the size, instead it’s based on the number of tea bags, since water is pretty cheap in non-bottle form.

Place

  • The Coffee Holding Company, Inc. is located at 3475 Victory Blvd, Staten Island, in Staten Island, New York.
  • Starbucks Coffee Canada is located in Toronto, Ontario
  • Starbucks Capital Asset Leasing Company is located in Delaware.
  • Starbucks has branches in Argentina, Australia, Chile, Singapore, Japan and the UK.
  • Starbucks coffees and teas were available in approximately 39,000 grocery and warehouse club stores, 33,000 of which were in the US and 5,500 in international markets.
  • The CPG segment includes packaged coffee and tea as well as branded products sold worldwide through channels such as, warehouse clubs, convenience stores and grocery stores.

Promotion

  • Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers.
  • My Starbucks reward program allows members to earn a free drink after every 15 purchases at participating Starbucks stores.
  • It’s rare (if not none) for you to find a Starbucks ad in a billboard, ad space, newspaper or poster in places where you can expect to see advertisements for most other establishments, such as McDonalds?
  • Starbucks stresses quality above price and other features it could emphasize.
  • The company has went to great lengths to create a “community atmosphere” among premium coffee lovers.
  • In 2001 Starbucks introduced the Starbucks Card, a stored-value card for customers to use and reload.

Process

  • Starbucks operates primarily through joint ventures and licensing arrangements with consumer products business partners.
  • The Starbuck Company’s International specialty operations are comprised of retail store licensing operations in more than 40 countries and foodservice accounts in Canada and the UK.
  • The company’s US specialty operations include licensed retail stores, food service accounts and other projects related to Starbucks’s main business strategy.
  • Starbucks accepts store license applications online, with the initial information centering on the type of operation being run by the applicant.
  • Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers.

Physical Evidence

  • Starbucks provides information on its products, business partnerships, and career opportunities on its website .
  • The famous Starbucks Logo (which is green and features a partially nude siren) has stayed largely unchanged since its origin, However it has been altered to adjust to international sensibilities.
  • Starbucks stopped using pre-ground beans in its stores in order that the grinding of whole bean coffee will "bring aroma, romance and theater" to American stores.

People

  • Howard Schultz is Chairman, Chief Executive Officer for Starbucks.
  • Olden Lee Interim Vice President
  • Barbara Bass Director, Non Executive Board
  • Cliff Burrows is President of Starbucks Coffee US
  • Author Rubenfeld, Global Development
  • Troy Alstead is Chief Financial Officer
  • John Culver is President of Global Consumer Products


LESSON 20

Three Levels of a Product

Consumers often think that a product is simply the physical item that he or she buys. In order to actively explore the nature of a product further, let’s consider it as three different products – the CORE product, the ACTUAL product, and finally the AUGMENTED product. This concept is known as the Three Levels of a Product.


New Product Development (NPD)

New Product Development (NPD) will take in to account the consumer’s preference for benefits over features by considering research into their needs. NPD aims to satisfy and anticipate needs. NPD delivers products which offer benefits at the core, actual and augmented levels.
NPD might offer a replacement product for a current line, it could add products to the current line, it could discover new product lines and sometimes it delivers very innovative products which the world might not have seen before.
New products are launched for all sorts of reasons. As we know from our previous lesson on the business environment, legislation i.e. changes in the law can mean that companies have to design and develop new products. An example of this was when we moved from videotape recorders to digital and DVD recorders. So products need to be modified for changing target markets.
Three Levels of a Product
Sometimes the company will need to increase the volume that a production plant delivers, since maybe it is not running at full capacity. An example of this would be a food manufacturer of tinned soup that has a factory which can operate 24/7, designing different derivatives of the soup in order to lower the unit cost of production. So product lines are extended, in this case the reason being is to ease operational efficiency.
Intense competitive rivalry in the market will also lead to the need for NPD. Just think about your smart phone and how quickly such products go through their product life cycles, throughout your customer life-cycle.
Change in any element of the marketing mix would influence NPD, for example there is a movement to shop online and some products need to be distributed via online retailers, and the product is adapted to make it compact and simple to deliver. NPD can be driven by many influences from changing consumer tastes to the need to adapt products and services for local or international market.
Another marketing tool for evaluating PRODUCT is the Product Life Cycle (PLC). Also see the Customer Life Cycle (CLC).
The CORE product is NOT the tangible physical product. You can’t touch it. That’s because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.
The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of product.
The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car’s manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.

Features and benefits of products

Features and benefits of a product are also relevant to the three levels of the product. Products tend to have a whole series of features but only a small number of benefits to the actual consumer.
Let’s look at this another way, if you buy a Nintendo console it has many features; for example you can play games alone or you can play against another opponent or two or three opponents. You can also have access to the Internet. Avatars are adaptable so you can create yourself and your friends. These are all examples of features to the consumer. However a consumer may buy it because he or she wants to stay fit and will use software and peripherals to become healthier. Becoming healthier is the benefit to the consumer.
The consistent marketer will aim to discover the consumer’s preference for benefits and will match individual features to the preference. That is why professional salespeople for example, often ask many questions whereas a novice salesperson will just tell you the features of the product.


LESSON 21

Time Warner Marketing Mix

Time Warner Entertainment was formed in 1992. The company launched a number of magazines, TV channels and theme parks in the early 1990s. In 1991, Quantum Computer Services officially changed its name to America Online and went public in the following year. Time Warner Telecommunications was launched in 1993 when Time Magazine first appeared on AOL. During 1994, AOL acquired a number of companies that specialized in internet and multimedia publishing, and by mid 1995 it had over 2.5 million subscribers. The Time Warner and AOL merger was announced in 2000.

Product

  • Time Warner is a dominant media and entertainment company whose key business segments include cable, filmed entertainment, networks, and Internet access subscription services. Specifically, their inventory of brands includes AOL, HBO, CNN, Time, Fortune, People, Sports Illustrated, Time Warner Cable and Warner Brothers.
  • Time Warner’s cable division includes Video services, Analog services, Digital services, On-Demand services, DVRs, High definition services, Interactive services, High-speed Data Services Road Runner, Time Warner Cable Business Class, Voice services and Digital Phone.
  • The company’s filmed entertainment division includes distribution of theatrical motion pictures distribution of television shows, Animation, distribution of home video products, licensing of programs and characters plus television programming.
  • Time Warner’s Network Division entails sports franchises cable networks, pay television, services, broadcast television network, and pay television programming.
  • The company’s Publishing Division produces books and magazines.
  • Time Warner’s Internet access subscription services are primarily operated through AOL.

Time Warner Marketing mix

Time and Warner Communications began operations in the 1920s. Henry Luce and Britton Haddon founded Time in 1922. The first issue of Time Magazine appeared in 1923. Warner Brothers (Warner Bros) was incorporated by brothers Harry, Abe, Jack, and Sam Warner in the same year. Warner Bros went public in 1925. Time merged with Warner Communications in 1989 to form Time Warner. Would you like to take a lesson on the marketing mix?

Price

  • Time Warner announced cable rate increases ranging from 6 to 8 percent depending on regions of the country.
  • Time Warner’s Talk ‘n’ View package, of telephone and cable television service, will rise from $100.50 to $108.95 – an increase of about 8 percent.
  • “Surf ‘n’ View”, a combination of Internet and cable television, will increase from $105.50 to $111.95, an increase of 6 percent.
  • “All the Best”, which combines cable, internet and phone, will rise from $135.50 to $144.95, or 7 percent.
  • The projected increases are said to result from increasing carriage fees faced by Time Warner which is passing some of the cost along to customers.
  • Customers can minimize price Time Warner price increases by opting for longer term agreements such as offered in the “Price Lock Gaurantee”
  • In 2008 AOL increased subscriber rates by $2 to $11.99 per month, unless they decide to give up technical support by phone. AOL says the higher rate is still $3 to $10 less than monthly fees charged by other Internet service providers.

Place

  • Time Warner’s Head Office is located in the Time Warner Center, New York City, New York.
  • Turner Broadcasting System is located in Atlanta Georgia at the CNN Center.
  • Home Box Office Warner Brothers Entertainment is based in Burbank California.
  • HBO is located on the Avenue of the Americas in New York New York
  • Time Warner Cable operates in 31 states, including Alabama, Arizona, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
  • In 2008, Time Warner Cable Business Class launched its nationwide agent channel program, a national channel strategy, allowing channel partners to deploy its services across all company markets. It will have one set of price points and one set of products.

Promotion

  • In 2010 Time Warner introduced its “Online Customer Care Team, Led by Online Customer Care Manager Phil Blum, the four-person team will use e-mail, Twitter, and other forms of social media to get customers help anytime, anywhere, and on any device.
  • In November of 2009 Time Warner’s Turner Classic Movies invited fans around the country to its “TCM Classic Film Festival”, scheduled for spring 2010.
  • Time Warner’s Warner Brothers Home Entertainment Group launched a DVD to Blu-Ray upgrade program which will let customers select from over 50 movie titles to upgrade.
  • Time Warner Cable Package deals provides a toll free number and special promotion codes for specially bundled services.

People

  • Time Warner has over 31 000 employees.
  • Jeffery L. Bewkes is the Chairman and Chief Executive Officer 
  • Bill Nelson is the Chairman and Chief Executive Officer of HBO.
  • Phillip Kent is the Chairman and Chief Executive Officer of Turner Broadcasting.
  • Ann S. Moore is the Chairman and Chief Executive Officer of Time, Inc
  • Barry M. Meyer is the Chairman and Chief Executive Officer of Warner Brothers Entertainment.
  • Each divisional CEO has an annual plan for diversity that supports multicultural market expansion, workforce diversity development, and workplace inclusion.
  • People magazine reaches one out of every five Hispanics; nearly one third of HBO’s subscribers are people of color; over 20% of “Adult Swim’s” audience is African-American; and “House of Payne” on TBS is cable’s #1 ad-supported sitcom telecast of all time.

Pysicial Evidence

  • Time Warner’s corporate web page www.timewarner.com  provides a wealth of information on its management policies, citizenship and investor relations as well as recent news releases.
  • Time Warner and its main divisions Turner Broadcasting, Home Box Office, Time, Inc, and Warner Bros. Entertainment each have unique, specially created pieces of artwork for its logos.

Process

  • Time Warner Cable’s nationwide agent channel program will allow channel partners to deploy its services across all company markets. The benefits include one set of price points and one set of products.
  • In December of 2009 Time Warner spun off AOL in order to streamline its operations and be more focused on creating packaging and distributing content.
  • Recently Time Warner entered into a video distribution agreement with YouTube calling for YouTube to host content from a wide rage of its television shows and movies.
  • Time Warner has partnered with Canon Business Solutions to provide employee training on environmentally responsible methods to use printers and copiers.
  • Home Box Office is seeking to establish criteria for purchasing products that reduce the impact on the environment.
Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.


LESSON 22

Yahoo Marketing Mix

The growth of web directories and search engines in the nineties prompted Yahoo to begin a series of business acquisitions including Four11, Rocketmail, and eGroups and Classic Games.com. Subsequently, Yahoo also obtained other competing search engines, including Overture, Altavista and AllTheWeb.
Today, Yahoo is a company earning over 6.4 million in revenue and employs 13,900 people and its various websites are visited up to 300 million times per month.

Product

  • Yahoo! (Yahoo) is a leading global internet businesses, which provides internet services to individuals and businesses worldwide.
  • Yahoo! Home Page – including My Yahoo, Yahoo Toolbar, Yahoo Local and Connected TV.
  • Communities & Services – including Yahoo Groups, Yahoo Answers
    and Flickr.
  • Search Services – including Yahoo Search, Yahoo Local, Yahoo Yellow Pages, and Yahoo Maps.
  • Communications Services – including Yahoo Mail, Zimbra Mail, and Yahoo Messenger.
  • Connected life – including Yahoo Mobile, Yahoo Go, Yahoo Broadcast, Yahoo Digital Home, and Yahoo Desktop.
  • Audience Services – including Yahoo News, Yahoo Finance, Yahoo Sports, Yahoo Autos, Yahoo Food, Yahoo Games, and Yahoo Health.
  • Major Products and Services – including Yahoo Kids, Yahoo Movies, Yahoo Movies, Yahoo Music, Yahoo Personals, Yahoo Real Estate, Shine, Yahoo Shopping, Yahoo Tech, Yahoo Travel, Yahoo Travel Yahoo! Kids and Yahoo TV.

Price

  • Yahoo Search employs quality-based pricing, which measures the quality of traffic coming from its distribution partners i.e. web publishers that display your paid ads.
  • Yahoo Ecommerce rates for small business range from $39.99 (starter) to $129.95 (Standard) on up to $299.95 (Professional) in monthly costs.
  • Yahoos Build Your Own Search Service (Boss) employs a “pay for what you use pricing approach rather than a one size fits all for its developers customers. The rate is calculated by number of queries and how deep they go.
  • Yahoo domain service prices range from the length of term, i.e. 1 year costs $9.95, two years $19.90, 4 years $29.85 and 5 years $49.75.
  • Yahoo Web Hosting prices range from $9.95 per month (if the term is 1 year) to $12.95 if the term is on a monthly basis.

Yahoo Marketing Mix

Introduction

Yahoo originated in 1994 as “Jerry’s Guide to the World Wide Web” (a directory of other websites). The name was then changed to Yahoo. The value of the directory created by David Yang and David Filo soon became apparent after receiving over 900,000 hits. The company held its initial public offering in 1996. Would you like to take a lesson on the marketing mix?

Place

  • Yahoo operates an affiliate program whereby online marketers can promote its Hosting Services, Yahoo Mail Plus, Yahoo Games, Yahoo Hot Jobs and Merchant Solutions for commissions ranging from $10 to $90.
  • Yahoos online Search Marketing Distribution Network includes AllTheWeb, MSN, Info Space, Net Zero, DreamWiz, HP and AltaVista.

Promotion

  • Yahoo has developed a new ad campaign which uses the slogan “your favorite stuff all in one place “, and takes a swipe at its competitor, Google.
  • The Yahoo logo has remained essentially the same since its inception with color changes being the biggest difference over time. Its brand is rated in the top 100 by Rate the Brands.
  • Yahoo has run radio and television ads comparing itself favorably over Google.
  • Yahoo has entered into partnership with Gannett in which all of Gannett’s 81 local publishing organizations and seven of its Broadcasting Division sites will sell Yahoo! advertising inventory as part of Gannett’s local advertising solutions.

People

  • Carol Bartz replaced Jerry Yang as CEO.
  • Jerry Yang, Chief Yahoo
  • Roy Boystock, Chairman of the Non-executive Board
  • Patti S. Hart, Director of the Non-executive Board
  • Michael J. Callahan, General Counsel
  • Tim Morse, Chief Financial Officer
  • Yahoo is expanding its customer service operations to add more call center employees who can speak more languages.

Physical Evidence

  • Yahoo has subsidiaries located in Singapore, Beijing, Hong Kong and India.
  • The company offers localized versions of Yahoo! in Argentina, Australia, Brazil, Canada, France, Germany, Greece, Ireland, and Italy.
  • Yahoo News http://news.yahoo.com/ is a website that gathers up to date information on business, entertainment, health and politics, etc.
  • Yahoo operates an online Real Estate site – http://realestate.yahoo.com/Homevalues where prospects can search home values and recent sales in their locality.
  • Yahoo! Safely is an online resource located at http://safely.yahoo.com/ that caters to kids, parents, and educators which provides relevant, up-to-date strategies and tools to help foster safer online experiences.
  • Yahoo! has partnered with Facebook to allow both Yahoo! and Facebook to link accounts, view and share updates with friends across both networks. Additionally, people who create and share content on Yahoo! sites – including Yahoo! News, Yahoo! Sports, Flickr, and many Yahoo! entertainment sites, such as omg!, Yahoo! TV, and Yahoo! Movies – can easily share their actions with friends back on Facebook.

Process

  • Yahoo recently implemented a new Google AdWords Importing Tool that allows advertisers to easily take their exported Google AdWords campaigns and import them directly into their Yahoo! Search Marketing account.
  • Yahoo regularly recruits out-of-the-box thinkers which increases their capability to produce new products and services.
  • Yahoo has enhanced its global reach by creating more targeted advertising and country specific services.
  • Yahoo has recently bolstered its role in the online community niche by acquiring Flickr, del.icio, and Web Jay. The goal is to build internet communities that interact and assist each other in information searches.
  • Yahoo employs a delayed deployment strategy which delays new service launches until the product is more “robust” and undergone testing.
  • In 2008 Yahoo held a “Open Hack Day” during which I invited developer to experiment with different utilities from existing Yahoo sites. The goal was to facilitate innovation.
  • Yahoo seeks to use site features to achieve the “sticky” affect, i.e keep visitors on its sites
  • Yahoo uses Joint Ventures to achieve recurring income.
  • Disclaimer:
    This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.
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