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MBA - Marketing Management

Module number - MOD001230


Module Leader - Michael Chance
Students name - Manish Singh Kannojiya
Student ID - 1558182
Intake - February 2016
Company - International Business Machines Corp (IBM)
Presented by - Lord Ashcroft International Business School

Table of content

1.1 Introduction 3
2.1 Monroe Model 4
2.2 Woodruffs model 4
2.3 Fawcetts Model 5
3.1 Value preposition .7
3.1 Comparison using Fawcetts Model 8
4.1 New improved Value Proposition for MACulture .10
A. Things that MACulture should change 10
B. Things that MACulture should not change .10
5. Business Action Plan 11
______________________________________________________________________________

MACulture ( Now also known as


MAC life)
Criteria 1
1.1 Introduction
Maclife : Not a name everyone is a Singapore is familiar with. But, known for its brilliant
compilation of Apple products. Its your one stop shop for New and used apple products. This shop
is compact but eases your shopping experience. This store was founded way back in 2002 and since
then there focus has always been continuously on a low price of the products. Also you get
excellent diversity in accessories as well. The real owner of the shop still remain
mystery
but staff says it was founded by couple of small time business. The current owner
is Mr. lui
Zing-ping.
MacLifeShop
Mac Solutions Simplified
No 1 Rochor Canal Road
#05 - 62, Spore 188504
Tel : 6336 3531
Sim Lim Square
Mon - Sat : 12 - 8
Sun : Closed

Contact number : 6336 3531


When we talk about customer perceived value there are several models of verifying the same. Few
of them are :-

2.1 Monroe Model


Perceived Benefits

:-

The store has a team of 3 members who are available for the whole business day to take the customers for a
ultimate Mac experiences via Apple products and to help them decide what's the best product for a given
individual. These people are very friendly and calm. Also, they have a very good knowledge of technology
of Mac and it's functionality because there work is not limited to just Sales but also with the Repair. It helps
them boost their knowledge adequately. Their prices and offers are best in the market and their location
works as an added advantage for them as they are in a building which is solely dedicated to Electronics.

Perceived Sacrifices :When there are pros there will be cons, the store is compact and they have a limited stock as
compared to other market leader in their competition. Staff is limited but the offers are good, this
result into more customers and less staff to handle them. When we talk about customers we have to
consider customer service as well. As they don't have a proper website they also don't have a
customer service team. They do have a Facebook page where there is an option to contact the
service team and their response time is remarkably well which also stand them in the line for good
customer satisfaction.

Customer Perceived Value :Customer likes people who are knowledgable, smart and friendly at the same time. Customers like
to have suggestion when need it. They won't reply on repair services as they are more comfortable
going to an Authorised service centre. They also don't care how big the shop is till the time they get
what they need and when they need, so take care of stocks. Customer service always needs to be
good.

2.2 Woodruffs model


Attribute-based Satisfaction :The store focuses mainly on Apple products so the level of performance will be good as Apple Inc.
is known for it's premium products. MACulture has maintained the range of products which are
available in and out of the market. Because Apple makes the hardware, the operating system and
many applications, Apple products are truly integrated systems. And only AppleCare products give
you one-stop service and support from Apple experts, so most issues can be resolved in a single
call. This is too available with them which is an added advantage with MACulture.

Consequence based satisfaction :MACulture is kind of a retail store which focus a lot on customer experience. The interior of the
store is compact but innovative at the same time. You can experience the premium Apple, Inc.
products placed on display and experience section for the customer. Same room has a presence of
an Apple expert who is always happy to help. With the new Apple products you also have a choice
to buy old or refurbished products in the lesser price. The devices are good and the engineer
working at the store certifies that quality. Customers in the store also have lot of option to choose
among the various other accessories to make their Macs and other products look cool, Though, the
products are not Apple branded but they give very good value for money. Hence, the experience in
the store is worth visiting as you get quotes from the manager itself.

Goal based satisfaction :Due to increasing competition in the technology market surviving in the a place which is known for
IT products is really tough. Still, MACulture denies to kneel down. They aspire becoming the best
place to shop for. They regularly aim for the best price possible for every product minimising their
profit margin, though it can also be considered as a very good marketing technique as it focus on
good customer relation building. Secondly, the store is compact too but they deny getting a new
place as that place is a heaven for IT lovers to shop and repair so leaving the place and setup at a
new place is not on their list which is highly remarkable as they are performing very good here even
their competitor is one of the biggest resellers in Singapore and has the presence in the same
location but a very comfortable place.

2.3 Fawcetts Model


Innovation :- They have a very good combination of a cool engineer/repair man and a marketing
manager. The quotes from the manager is pretty efficient as the product offered by the manager
focus a lot on the need of the customer rather than what he wants. The managers work in building
customer trust has been appreciated a lot in the last 5 years. There had been 3 change of manager in
this span of time but the store refuse to decrease the level of commitment and quality out of the
team ever.

Delivery :- To purchase any Apple product from the store you will need to be physically present
in the store as they practice a policy of product experience and satisfaction. You get to see the
product you buy yourself and the payment and billing with warrantee guidelines to you in the best
way possible.

Quality :- MACulture focuses on Apple products and Apple, Inc. is arguably the most efficient
brand in the current time which provide technology to the world which is the base of innovation and
imagination. The products here are exactly what everyone needs and what they are looking for.

Cost :- The presence of the store is in Sim Lim Tower which is only known for IT products. The
place is highly competitive and expensive. The store running and management cost is also high
accordingly. As Singapore follows a standard pay policy according to education the staff always

gets paid according to their skill set. But, as the profit margin is less as they focus on the least price
possible in the market than others the margin of profit is low as well. This is also a sacrifice they

make that means hiring fewer people in their staff for customer support and back support as
compared to their market leaders in the same segment.

Responsiveness :- The store has a customer service page in some social networking sites like
Facebook where you can post your feedback and experience which is highly welcomed and
rectified. You can personally message them on the same platform to which you usually get a reply
within 30-40 mins during business hours. They also have their own website which looks very good
and hand crafted but is down for some maintenance this time.

Total Customer Value :- After analysing the Store with this model and the five aspects above
we can clearly see that for adjusting on Cost they have cause a pain for the customer as they have
just 2 people for support which works in Off hours and day but when there is a big flow of
incoming customers no one likes to wait in a queue in a compact store with just 1 or 2 executives
helping you.

Criteria 2

3.1 Value preposition


MACulture :
A store where you find everything for and of Apple. It gives you :

Wide range of Apple products.


Good prices.
Friendly staff
Easy access to the info about Apple

VS Nubox
The big boss, best reseller in Singapore. Also known for its big stores.
This is the store which makes you feel like an real Apple store :

Reasonable prices
Home delivery of orders
Stores spread in whole Singapore
Apples recommended in Singapore
nbox is a subsidiary brand of Newstead
Technologies Pte. Ltd.
The

brand does not just see itself as selling Apple products; it is striving to create an immersive lifestyle
experience for customers.

Service is an important value proposition for nbox. A team of trained and knowledgeable nboxers
is always on hand to offer unparalleled service to customers, and help them learn about the latest
Apple products.
The hands-on experience provides customers an opportunity to test-drive the products, and leads to
more informed purchase decisions. Offering services and expert advice for both consumer and
professional customers, nbox also provides regular in-store demonstrations and training so
customers get the most out of their purchases.
Continuing to maintain the status of choice, an Apple reseller requires an unrelenting commitment
and dedication, but nbox remains up for the challenge.

There is a huge difference between both the stores. Though, both the stores
share the same location as we discuss but the biggest difference comes when
we look at the fact that MACulture has a single store in Sim Lim Tower and
nubox has already established more than 6 stores in Singapore itself. The
people management in nubox is very good due to lot of employees and also
their payscale is good too. They have a proper Human resource team as well
which is remarkably doing well. Whereas, MACulture is still growing. They follow
personal management and prefer doing work on their own. You will easy see
the owner of the shop giving you technical tips on products you want to buy.
Which is good as you are trying to reach direct to the customers. Both of the
sellers have no R & D team as such but nubox practice lot of new innovation in
their behavior and work everyday.
MACulture, on the other hand, prefer going into a traditional shop running
practice. They dont believe in changes as such. The most of their profit is
derived by their prices which is lower than any other reseller.
The customer feedback and complaints are handled very efficiently and its a
very good thing that they implement it too. The service in nubox is good as
most of the employees working here are professionals. They know what nubox
are offering to the customers. On the other hand, MACulture has a very casual
and friendly approach to the customers. They rather believing in treating
customers as their own friends.

Criteria 3
3.2 Comparison using Fawcetts Model
Innovation - MACulture is not that interested in innovation like nubox as
they have a very small team and low revenue so they just like to stick to the
basics. They still have the same interior like last 8 years. Same location and in
fact same tools. All that keeps updating is new Apple products.
nubox on the other hand keeps on rotating their employees to the other
locations as well. They have also planned on extending their servicing to other
countries like Malaysia as well.

Delivery - MACulture, due to its limited availability of staff are not into home
delivery and also they have limited stocks as well so there have been lot of
instances wherein a customer wishes a particular product but the same is not
available in the store and they dont even know when its going to arrive.
nubox on the other hand have also started home delivery of the orders with a
minimal fee. Their usual delivery time is 2 hours max. Its good as they are
reaching more and more customers in their need.

Quality - The quality of the product is totally based on Apple Inc. which never
negotiate on quality. So its good but when we talk about manufactured
products in either of the stores it has been found, which can also be a mere coincidence that nubox has better products performance than MACulture.

Cost - As we have discussed in criteria 1 too that nubox has a standard


pricing in whole Singapore. This is a pattern they have set in these years. They
provide reasonable pricing to get their own profit as well.

On the other hand MACulture have a lower pricing around 10 to 15 % as


compared to nubox to remain in the competition and also make some money.

Responsiveness- MACulture has their own website which is mostly down


for some reason and is not rectified since a long. They have got a Facebook
page but the response time is more than 48 hours so its not helpful to the
customers. That clear states their response time with customers complaints or
feedback is bad and dissatisfactory.
Talking about nubox, they are very professional and successful with this. Their
website is awesome and have a very good response time. They have got a
phone number to contact and even whatsapp. Store is easily available on
Google maps and the Facebook response time is very quick too. So overall its
good to contact them.

MACulture

nubox

Innovation

No

Yes

Delivery

No

Yes

Quality

No

Yes

Cost

Yes

No

Responsiveness

Yes

Yes

So, the point here remains the same. There are lot of aspects where MACulture
beats nubox and in some aspects its the other way round. There are pros and
cons.

The chart above will help you understand the same.

Criteria 4

4.1 New improved Value Proposition for MACulture


MACulture has innovated a lot in their store. They are now new age store in
every aspect. Their services are excellent, customers in the store are very
happy with the services and price. Though, they dont provide free home
deliveries, but the staff is very cooperative and friendly, which makes the
shopping experience in the store very easy and friendly.
Prices are also one other factor which they do not need to change, customers
also visit them because of their prices because they have Apple products in a
very reasonable prices.

A.

Things that MACulture should change

MACulture is not that interested in innovation like nubox as they have a very
small team and low revenue so they just like to stick to the basics. They still
have the same interior like last 8 years. Same location and in fact same tools.
All that keeps updating is new Apple products. MACulture, due to its limited
availability of staff are not into home delivery and also they have limited stocks
as well so there have been lot of instances wherein a customer wishes a
particular product but the same is not available in the store and they dont
even know when its going to arrive.

MACulture has their own website which is mostly down for some reason and is
not rectified since a long. They have got a Facebook page but the response

time is more than 48 hours so its not helpful to the customers. That clear
states their response time with customers complaints or feedback is bad and
dissatisfactory.

R & D department is not so strong. R&D always plays a very crucial role in the
success of a firm. Same is the case with this store, they should have strong
R&D department. As nowadays, its very important to view the market, to do
research in the market about the customers likes and dislikes, listening to the
choices of the customers and implement it in the business, these all things are
necessary for a well running business, which MACulture lags

B.

Things that MACulture should not change

Services- Their services are excellent, customers in the store are very happy
with the services and price. Though, they dont provide free home deliveries,
but the staff is very cooperative and friendly, which makes the shopping
experience in the store very easy and friendly.
Prices are also one other factor which they do not need to change, customers
also visit them because of their prices because they have Apple products in a
very reasonable prices.

Criteria 5
5. Business Action Plan What is the goal, how do
we achieve the goal?

Description of the goal


Goal 1

Keeping the premium products on display to ge


experience

Goal 2

Increasing the satisfaction of the in store experi

Goal 3

Increasing the stock availability by at least 50%

Goal 4

Keep a person for R & D and new innovations.

Go
al
#

Actions to
take

Respo
nsible
Perso
n

Resources

Externa Tim Dead


l or
e
line
Internal Giv
en

Get some
more space
to get the
Apple
products on
Display to
get the
hands-onexperience.

Store
owner
/Mana
ger

Money,
manpower
and space.

Internal 20
02/0
day 6/16
s

Go
al
#

Actions to take

Respo
nsible
Perso
n

Resourc
es

Exte
rnal
or
Inter
nal

Tim Dead
e
line
Giv
en

Hiring some
employees with a
pleasant
personality and
nature or getting
the existing
employees trained
to upgrade their
skills.

Store
owne
r/Man
ager

Money,
Trainer
and
time to
train.

Exte 20
02/0
rnal day 6/16
s

Goal
#

Actions to take

Responsibl
e Person

Resources

Collaborating with
some more vendors
to get the stock on
time and
continuously.

Store
owner/Man
ager

Money and new vendor

Go
al
#

Actions to
take

Respo
nsible
Perso
n

Resources

Exte
rnal
or
Inter
nal

Hiring a
new R & D
expert or
getting an
existing
employee
trained.

Store
owner
/Mana
ger

Money and HR.

Both 10
22/0
day 5/16
s

Tim Dead
e
line
Giv
en

MACulture has innovated a lot in their store. They are now new age store in
every aspect. Their services are excellent, customers in the store are very
happy with the services and price. Though, they dont provide free home
deliveries, but the staff is very cooperative and friendly, which makes the
shopping experience in the store very easy and friendly.
Prices are also one other factor which they do not need to change, customers
also visit them because of their prices because they have Apple products in a
very reasonable prices.

Their services are excellent, customers in the store are very happy with the
services and price. Though, they dont provide free home deliveries, but the
staff is very cooperative and friendly, which makes the shopping experience in
the store very easy and friendly.
Prices are also one other factor which they do not need to change, customers
also visit them because of their prices because they have Apple products in a
very reasonable prices.

MACulture has their own website which is mostly down for some reason and is
not rectified since a long. They have got a Facebook page but the response
time is more than 48 hours so its not helpful to the customers. That clear
states their response time with customers complaints or feedback is bad and
dissatisfactory.

R & D department is not so strong. R&D always plays a very crucial role in the
success of a firm. Same is the case with this store, they should have strong
R&D department. As nowadays, its very important to view the market, to do
research in the market about the customers likes and dislikes, listening to the
choices of the customers and implement it in the business, these all things are
necessary for a well running business, which MACulture lags

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