MKM706 – MARKETING FUNDAMENTALS

Week 2A – Case Analysis

Today’s Agenda:
• Review of Week 1
• Case Analysis
• Group Case Example
In the News
• Harvey’s add plant based hamburger
• More than half of Canadians feel that security around their
personal identity online is more important than security
around their money (source: Strategyonline.ca)
• Facebook Dating App
What is Marketing?
• Why are we here?
• Marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners,
and society at large. (AMA, 2013)
• Product example.
Challenges & Opportunities of Marketing Today
• Power shift to customers

• Massive increase in product selection – global competition

• Audience and media fragmentation

• Shifting demand patterns – effects of technology

• Privacy, security, and ethical concerns

Are there any Universal Rules for Marketers?
According to Philip Kottler of the Kellogg School
of Management, here are the top 3:
1. Understand your target customers and solve their problems in
a better way than your competitors.
2. Build your brand promise that is delivered by everyone in your
business network.
3. Innovate continuously in your products, services, and supply
chain.
 Case Analysis
• Objectives of Case Analysis
– Application of theoretical concepts
– Development of managerial skills
– Use of disciplined problem-solving process
– Group discussions afford multiple context and perspective opportunities
– Deal with ambiguity
– Answer: “Why are we here?”

Sources: HBS Note – An Introduction to Cases (Shapiro, 1984)

Slides based on content created by Professor D. Reith
Steps in Analyzing a Case
1) Read the case once in full
2) Read case again and take notes
3) Identify Business Problem
4) Identify any constraints/assumptions
5) What are the issues?
• Multiple issues for more complex cases
• MECE (Mutually Exclusive, Collectively Exhaustive)
Presenting a Case
1) Background Information
2) Current Situation and Impact on Future (What’s in it for the
company, goals etc.)
3) Identify the Business Problem and any constraints/assumptions
4) Alternatives
• MECE (Mutually Exclusive, Collectively Exhaustive)
5) Evaluation of Alternatives
• Decision criteria used appropriately
6) Recommendation
7) Implementation
Identifying a Problem
Identify Business Problem
• A problem is a gap between current state and desired state
• A problem is not a symptom - declining sales or unhappy
employees are not a problem to most companies, they are in fact,
symptoms of underlying problems which need to addressed
• Everything that follows in the case should solve the problem
• It can also be an “opportunity”
Identifying a Problem
Symptom vs. Problem
• Let's say a plant manager walks past the assembly line and
notices a puddle of water on the floor. Knowing that the
water is a safety hazard, he asks the supervisor to have
someone get a mop and clean up the puddle. The plant
manager is proud of himself for "fixing" a potential safety
problem.
• Did he identify the problem?
Problem Statement
• Should be brief, to the point and provide clear indication what
must be addressed to improve organizational performance:
• Ie. “The current sales force compensation at Bell Media is
inadequate to retain an acceptable percentage of high
performing salespeople, resulting in lost customers, less new
business and decreased high-margin sales”
Typical Case Questions to Answer/Solve
• What is the Problem?  Why did it happen?
• I have a Problem/Opportunity?  What should we do?
• Someone has suggested a solution  Should we implement?
• I have a solution  How should we implement?
Analyzing Alternatives
• Evaluation - Use multiple criteria (At least 3):
i. How well does the alternative address the problem?
ii. Consistency of the alternative with the mission statement
iii. Ability to achieve the plan’s stated goals

• For each alternative, estimate/evaluate the cost & revenue implications, otherwise
your assessment is incomplete & unrealistic

• Recommendation is a natural result of evaluation

• Selected alternative must stand up best for:

i. Consistency with mission
ii. Goals & objectives as stated
iii. Strongest possible financial performance
Understanding MECE
 MECE Alternatives Example

Credit: Slideshare: CodeGround

Determining Criteria for Alternatives
Criteria are the answer to the following question:
• What do I need to think about when making the
decision?
• Who does my decision impact?
• Who can impact the outcome of that decision?
Decision criteria should be:
• Relevant to the decision
• Relevant to the case evidence
• Limited to what’s necessary for making a sound decision
 Decisions Require Thorough Evaluation
Are You Being Asked To Decide On Something?
Establish Appropriate Alternatives
Identify The Criteria To Be Used To Evaluate The
Alternatives?
Thoroughly Evaluate The Alternatives Based On
Your Criteria
Decide On The Best Alternative With A Summary
Rationale
2020-03-03
For example, define the market,
segmentation base, target market
selection, choice of positioning, key
benefit for positioning statement, price,
etc.
Consider who or what may be impacted
by the decision (e.g. consumer,
company, brand, etc.), and who or what
could impact the effectiveness of the
decision (e.g. size of opportunity,
competitive reaction, internal
resistance, etc.)
Requires appropriate commentary for
each of your criteria that is useful to the
READER in properly understanding the
implications of each alternative. Y or N,
or a check mark is not helpful to the
reader.
18
Criteria should be closed questions
Here are some examples:
• Does it differentiate us from our competitors?
• Will our competitors react?
• Does it build on our core competencies?
• Does it appeal to our target consumer?
• Does it build our brand image?
• Does it improve (or at least maintain) profitability
• Does it increase sales, market share, or return on investment
• Does it maintain customer satisfaction, corporate image,
• Is it within our present (or future) resources and capabilities,
• Is there ease or speed of implementation?
• Does it improve employee morale, safety, or turnover?
• Does it retain flexibility?
• Does it minimize environmental impact?
Decision Criteria (cont.)
• It should be measureable - such as alternative A will
improve profitability more than alternative B.
• Be related to your problem and alternatives.
Implementation
I. Actions to be taken
II. Sequencing of marketing activities
III. Reasonable time frame for their completion

• Internal marketing plays a major role in the success of the

plan.
• Include your internal marketing plan as part of overall
plan to get everyone onside, especially frontline
employees.
Evaluation and Control
• As the plan is being implemented, must constantly monitor results to see if it’s
working.
• Set clear objectives i.e. 10% increase in sales within 6 months
• Do not assume a static competitive environment!
– If objectives are not being met:
 Poorly devised strategy?
 Poor or problematic implementation?
 Unfavorable environment?

• When do you decide it’s not working?

• Have a contingency plan or “fall-back” position if things are not working according
to plan.
Additional Tips
• Your case should tell a story
• Case must flow logically
• Headlines tell a story
• Is the answer of the entire slide with information below supporting
• Know your audience
• Do not repeat case facts
• Select appropriate criteria when evaluating alternatives
• What is involved with this alternative and how does it affect the
business?
Headline Tell a Story
• Instead of title as “Findings”, “Problem”, “Situation”, use a
headline that helps answer question/solve problem.
• Slide body supports headline with evidence, charts and
graphs as needed
• Goes against our logical thinking flow ie. Statement then
supporting evidence.
• The reader should be able to follow your presentation by
just reading headlines
Headline Tell a Story Example
Headline 

Supporting Evidence
and graphs 
Case Example
• Flag’s Unlimited
Steps in Analyzing a Case
1) Read the case once in full
2) Read case again and take notes
3) Identify Business Problem
4) Identify any constraints/assumptions
5) What are the issues?
• MECE (Mutually Exclusive, Collectively Exhaustive)
Presenting a Case
1) Background Information
2) Current Situation and Impact on Future (What’s in it for the
company, goals etc.)
3) Identify the Business Problem and any constraints/assumptions
4) Alternatives
• MECE (Mutually Exclusive, Collectively Exhaustive)
5) Evaluation of Alternatives
• Decision criteria used appropriately
6) Recommendation
7) Implementation
Background Information/Goals
Metrics
• Flags Unlimited (FU) has 50% market share of Non Nylon
• Non nylon makes up 20% of market
• Nylon market is $390M ($40M Custom, $350M Flags)
• Therefore, total flag market $487.5M (Non nylon = $97.5M)
• FU owns $48.75M of market
• At 60% capacity FU can produce to earn $48.75M. Therefore
at 100%, FU can produce to earn $81.25M
What is Problem/Opportunity?
• Should Flags Unlimited enter the nylon market?
Assumptions
• Nylon flag can be made in current factory (if needed)
• Production costs relative to capacity for each type of
material do not change
Alternatives? Must be MECE!

Should Flags Unlimited enter the nylon

market?

Yes No
Alternatives? Must be MECE!

Yes No

Alternative Alternative Status

#1 #2 Quo
Alternatives? Must be MECE!

Yes

Multi
Branded
Branded
 Evaluation of Alternatives
Criteria
Alternatives
Status Quo - Do not enter the
market
Enter the market under Flag's
Unlimited current brand
Enter the market under new
brand
Will this confuse the Can sales be Will this lead to a Is it within our
Does it increase sales?
customer? cannibalized? channel conflict? capabilities?
No. Things will remain No. Things will remain No. Things will remain
the same. the same. the same.
Yes. It is current
situation.
No. Things will remain
the same.
Which
alternative
Yes. For years we have Yes. Consumers can
would you
promoted high quality, switch from non-nylon Yes. Confusion amongst Yes. We have 40% of
but now we will to nylon however there brand/material and production capacity
Yes. Tap into Non-nylon select?
market
produce less quality is a large market that is distribution may arise. available.
items. untapped
Yes. Consumers can
No. A new brand can
switch from non-nylon Yes. We have 40% of
No. The private brand have new distribution Yes. Tap into Non-nylon
to nylon however there production capacity
will be different. or similar model market
is a large market that is available.
currently.
untapped
Recommendations and Implementation
• Discuss reason and rationale for choice
• Can discuss metrics and potential sales
• Discussion of other Barrie plant
• Discuss government contracts/other avenues