Midterm exam

Nourhene EL Ouni
1/a- Biglove

This strategic business unit is in the star quadrant. This concept is extremely
growing and has relatively high market share. It has no position in a dog,
question mark or cash cow. It requires heavy investment to maintain its market
share so it needs the ‘build strategy’.

Geo_live deluxe suites

This strategic business unit is in the question mark quadrant. It’s a new concept,
designed to attract couples for their honeymoon choices but it’s not known if it
will be liked or not. With high level of investment behind it (build strategy), it
has the opportunity to become a star. Conversely, if it fails to gain traction in a
fast high growth market, it will become a dog.

Geo_dining
This is also in the question mark quadrant. This new concept has created a
powerful global network of customers but it has relatively low market share
comparing with local restaurants because of its high prices. It has to increase its
position to star quadrant and not drop into the dog quadrant. So, for that reason
it requires significant investment; build strategy.

b- First part

“Geo_dining started to launch a new brand, Geo_shoppers. By this new

concept, people can eatertain and shop local foods & products at the same time.
Around the restaurant, they open several kiosks with different local food and
merchandising product like bazaar”: introduction of a new product
‘Geo_shoppers’ to an existing market; product development.

“After they face with high demand from British families, they decide to open
chain stores in England”: entering a new market ‘England’ using an existing
product; market development.
Second part

Geo_shoppers when launched was in its introduction stage. The growth rate of
sales in this stage is low as Geo_shoppers is newly launched. This concept
gained acceptance among customers which led to its growth. In this stage, the
sales started to increase and profits began to accrue which enabled the decision
to open chain stores in England (after facing a high demand from British
families). When Geo_shoppers decided to expand into England, it was in the
late stage of growth and moving towards maturity stage.

c- As Geo_shoppers Marketing manager, I will gather data about the new

market to better understand its real needs and interests. For that, I will conduct
quantitative market research as it gives factual figures and data that highlights
target market interest. It also helps me to compile sales forecasts and revenue.
These can be done through the use of target market response rates and any
pricing information or preferences that are revealed by respondents during the
research. I will also conduct qualitative market research as it highlights target
market opinion on Geo_shoppers. By understanding these views, I will alter and
adapt the chain stores to ensure consumer satisfaction and competitiveness
within the new market.

d- For Geo_shoppers I will choose the overall cost leadership. This strategy
involves achieving competitive advantage through overall lowest cost compared
to other firms in the market. It enables Geo_shoppers to charge the lowest
amount for its products while remaining profitable.

e- Geo_shoppers selects the segments on geographic, socioeconomic,

demographic basis.
Geo_shoppers divides the market on demographic basis in the following
manner:
- All age
- Gender: male and female.
- All family sizes

For geographic segmentation, Geo_shoppers has chain stores in Turkey and

England.
For socioeconomic segmentation, Geo_shoppers targets low and middle income
class.
Geo_shoppers has gained attraction among customers as allows people to
eatertain and shop local foods and products at the same time. It also provides
cheap prices that suit the customer’s affordability.

2/

a) Relationship marketing: this theory proposes that as company delivers value

to customer, strength of its relationship with the customer will improve.

b) Gerilla Marketing: is a way to drive publicity and as a result brand awareness

by promoting using unconventional methods designed to evoke surprise wonder
or shock.

c) Share of heart: is creating and maintaining an emotional bond with people

who are important to the organization.

Share of wallet: is a marketing metric used to calculate the percentage of a

customer’s spending for a type of product or service that goes to a particular
company.

d) Pull and push strategy

A push strategy is to push a product at a customer, while a pull strategy pulls a

customer towards a product. Push strategy is a quick way to move a customer
from awareness to purchase, while pull strategy is about creating an ongoing
relationship with the brand.

e) De-marketing: Demarketing may be considered “unselling” or

“marketing in reverse”, which includes general and selective
demarketing. Although the concept of demarketing lacks a precise
theoretical definition, it refers to an attempt by the firm to discourage all
or some of its customers from making purchases either temporarily or
permanently.