Cohort effect VS Age Difference

Cohort effect VS Age Difference

Yoichi Horibe

Executive summary

I took a position that cohort effect is more important than age difference. The main reason is that company need to heavily focus on the trend of goods. The perspective of age difference is fixed because diaper is always required to children. However, Toys are not indispensible. It depends on the trend.

I would like to show seven American Cohorts based on Dr. Schewe’s research.

1, The Great Depression Cohort

It affects their attitude toward saving, spending, and finances.

2, The World War Ⅱ Cohort

They often read paper than television to catch information because they used to do it.

3, The post- World War ⅡCohort

They collect photo graph because they enjoyed economic babble.

4, Baby Boomers Ⅰ

They bought child goods a lot such as toys.

5, Baby Boomers Ⅱ

They tend to borrow money from financial company because of inflation.

6, Generation X

This is no major defining moments. They like self-mocking things such as The Simsons.

7, N-Gens

They are so called because the Internet has become their “engine”.

Pro or con

On the point of view from managers, they need to take an advantage from their competitive companies. How they can read the tread is going to be the advantage. This would be merit of cohort effect. However, this trend can not be predicted completely. This would be the risk.

Reference

 

Marketing to different ages and genders

www.kidsandyouth.com/10.03.pdf

Cohorts: Age-Based Marketing – Bidwell ID

www.bidwellid.com/resources/white…/Bidwell_ID_HYPERLINK “http://www.bidwellid.com/resources/white…/Bidwell_ID_Cohorts.pdf”CohortsHYPERLINK “http://www.bidwellid.com/resources/white…/Bidwell_ID_Cohorts.pdf”.pdf

Harley Davidson Case Questions

Harley Davidson Case Questions

Please read the case and answer the following questions. Try to answer the questions as concisely as possible. This case is from 2006 and therefore I would do some research to determine where Harley is today and how it has weathered the economic doom and gloom of the recession. I am interested in your opinions and evaluation as dictated by the following questions. Remember to keep the answers as concise as possible and to the point. I don’t need a thorough retelling of their corporate history.

1. Historically, how did Harley Davidson (HD) manage to dominate the U.S. market? What were its sources of competitive advantage? HD got into trouble in the 1970’s, what changed both internally and externally?

 

HD motorcycle is part of American iconography and is associated with U.S. flag and the bald eagle.  This association would be unprecedented brand loyalty. This competitive advantage enabled them to sell the motorcycle at higher price.

After Japanese manufacturers accounted for more than 85% of U.S. motorcycle, HD agreed a friendly takeover by AMF and gain capital for changing from niche player to beat Japanese companies.

 

2. What were the major ingredients of the HD transformation process? What elements seemed to you to be the most important? What is your own personal evaluation of the transformation process?

 

It is admirable that their immediate change of system after HD senior manager visited Honda factory and saw their minimum paperwork and things flowed smoothly. HD actually didn’t have such as just-in-time system but HD found their lacks quickly and tried to change their system and the process is very straightforward.

 

3. What is Harley’s current source of competitive advantage? If you are Honda, Where do you see HD being vulnerable?

 

Now is the time of appreciating Japanese Yen. This means it is efficient and easy to import HD products into Japan. This is totally HD advantage to sell in Japan. However, there is a risk that Japanese company proceeds into United States.

 

4. What is the Harley mystique?

 

When Japanese young people use highway and find Harley motorcycle, they always speak “he has money, high sense of philosophy and muscle” in an excited voice. They think the person who rides the motorcycle is perfect man.

The bike can be tinkered. This also can be their attractive point of view from Japanese. The mystique comes from their originality, creativity, novelty. The one of reason why HD succeeded in foreign market such as Japan rather than their country is they think foreign product is rare, quality and high-grade even if it is not true.

 

5. What are the challenges ahead for Harley in the 21^st century? Do you agree with their current strategy? Do you have any recommendations for HD in terms of their short term and long term strategy?

 

Top management required to consider foreign currency and foreign economics. In this global business era, the two factors are indispensable. The current strategy can be efficient but they need to consider it more global and make risk assessment for global financial incident.

 

Starbucks Case Questions

Starbucks Case Questions

1. In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective?

 

At first, Starbucks didn’t accept Schultz’s idea and he left the company. He found his new company and make Italian atmosphere. He had known many people drink cheap coffee and they don’t know the loyalty of the coffee. He didn’t use advertisement to maintain the loyalty and brand.

 

2. They started out with six stores and by the year 2000 were up to 3300 locations in 17 countries. What do you think were the critical drivers of Starbucks’ success?

 

His HR strategy is actually working. He had good managers and employees. The relationship between barista and customers is also good. The experience of drinking coffee in the store would be important point of their success.

 

3. What is the source of Starbucks’ competitive advantage? Is it sustainable? What should they do to enhance its position in the marketplace?

 

They considered whether if they sell Starbucks coffee in grocery store, the brand image would be degraded. Fortunately, it was success. Their brand name boosts their other products such as ice-creams.

 

4. It is now 2010, and you are leading a discussion on great companies and their leaders in the Information Revolution. What role do you ascribe to Starbucks and Howard Schultz?

 

Mail order catalog strategy enabled us to identify the potential of market. In this era, we must use internet system. If mail order catalog was possible, coupon from website would be possible too. We can figure out customer information more specifically and it is going to be low cost. Starbucks card is good example, the card facilitates our spending and the customer’s deposit helps their finance. Furthermore, customer could get a gift at their birthday.

 

5. Why did Schultz think he could successfully import the Italian Coffee bar concept to the United States?

 

When Schultz traveled to Italy to see their coffee business, his perspective about coffee business was changed. He saw the relationship of barista and customers, the atmosphere of coffee bar and figured out they had characteristic business style. His success is not only derived from these business styles but also derived from his own strategy such as health benefit and stock option.

 

6. Since this case was written (2002) Starbucks has gone through some significant problems and is now on the road to solving them. Please do research outside the realm of this case and briefly explain how they have weathered the storm of the recession and the change of their business model.

 

They are facing bad situation due to wrong decision making and global financial crisis. Their expansion policy is widely criticized because they are going to be just like Wal-Mart and overpriced furniture and raw materials accelerate their debt. In this economic, any competitors doesn’t follow such a company.

 

 

http://thecollegianur.com/2009/03/26/marketing-professor-diagnoses-problems-with-starbucks/7628/

http://www.slideshare.net/bensigler/starbucks-case-study-3790376

Frito-Lay’s Dips

Frito-Lay’s Dips

History of Company

Frito-Lay is a division of PepsiCo Inc. This company sells various kinds of corn chips. This headquarter is located in Plano, Texas. Charles Elmer Doolin purchased a corn chips recipe and established a new corn chip business, the Frito Company in 1932. Their first public offering is in 1954 and their merger and acquisition is in 1965. In 1985, the sales are $87 million, compared with $30 million in 1981. This growing derives from the product line of dips which is made by Ben Ball, Ann Mirabito.

Problem

Targeting issue

The company’s target is consumer market. They need to know customer’s behavior and trend. However, there is perspective problem which is the novelty of product for customers. For example, one of their products, shelf-stable cheese dips’ novelty had passed. As a new strategy of the countermeasure, the company introduces new products such as a shelf-stable, sour cream-based French onion dip.

Positioning issue

The managers try to sell sour cream-based French onion dip in vegetable category because dips can be used along with chips, crackers, or raw vegetables. Needless to say, there are refrigerated salad dressings as substitute of dips in vegetable category. Managers need to consider other kinds of product’s competition. When the dips entries in vegetable category, SWOT analysis would be needed.

Marketing mix issue

Marketing mix can be divided by four categories of definition which is Product (product variety, line), Price, Promotion, Place (distribution). I would like to mainly take about Promotion and distribution parts. As this company’s distribution strategy, they use a “front-door store delivery system” in which one person performs the sales and delivery function. This technic is suitable for non-chain outlets. However, chain-store doesn’t accept it. Chain-store required that manager come here to see situation of store because Chain-store would buy Frito-Lays products for all their outlets in the chain and they want to directly receive approvals of the merchandising plans from manager. In addition, on the point of view of researcher, the new product, sour cream-based French onion dip should be handled by their produce warehouse. This meant that the front door store delivery system would not be suitable for their method. However, they don’t have experience and unfamiliar with merchandising (Promotion) practices in the produce section in warehouse.

 

Brand equity and value

Frito-Lay’s products are basically belonging in salty snacks section. However, in case of the cheese dips, it would be different response from the customers because the company mainly used to sell salty chips such as tortilla chip. It means the company would sell cheese dips with their bland name which was created by their salty snack business. Customers always pays price premium for the brand because they already have sense of security from purchasing experience. However, if the different kinds of new products such as cheese dips are sold in different kind of brand category such as salty snack, this changing method would affect their original products. It cannot be sold easily without considering various factors which are related each other. Actually, there is risk.

Financial/Marketing relevant data

Their high revenue would be derived from competitive activity. Since their former product, Enchilada Bean Dip had done with producing, their customer flows to other company’s dip. However, thanks to an effort of advertising of new product, their revenue didn’t decrease. In addition, the dips market would get synergy effect.

 

Their income statement can be shown as Total Dip = Gross margin ($41,022) – Total marketing expense ($25,481) – General and administrative overhead ($6,572) = Profit contribution ($8,969).

Recommendation and Opinion

SWOT analysis would be most efficient method so I would like to introduce it.

Frito-Lay Inc. SWOT analysis

Strength

• Novelty of new product (cheese)
• Costless approach to non-chain store
• Adequate budget for advertisement

Weakness

• No experience of distributing from warehouse
• No experience of entering in vegetable category

Opportunity

• Enter in vegetable category
• Synergy effect by competitive activity
• Strong market potentials

Threat

• Degrading brand image by new product.
• Substitution of dips, refrigerated salad dressings

 

Reference

• Free SWOT analysis

http://www.businessballs.com/swotanalysisfreetemplate.htm

Barbecue Blues Sauce Company

Barbecue Blues Sauce Company

Questions

1, Based on the information provided in the Executive Summary below, would you recommend the new formulation of barbecue sauce be marketed, in addition to the original sauce, through retail grocery and specialty foods markets? Why or why not?

 

I would not like to recommend the new formulation of barbecue sauce. Before they make the new formulation, they should expand the sales area and the share. If the sauce is really loved, the new formulation would be loved too.

They thought it is very different from the original sauce in term of flavor so this new formulation is going to be really different from original one. It means it is very difficult to expect the sales revenue.

2, if you are recommending marketing the new barbecue sauce, use information from the Executive Summary to develop a strong justification for which of the two subbrand names, “Chicago style” or “Spicy Blend,” should be employed.

Now, the people who would be likely to purchase the new barbecue sauce are half of barbecue sauce users (43% / 83%).  I think this is not high rate because the share is 18%.  I could calculate that the number of people who would like to purchase the new barbecue sauce are (43% / 83%)*(1 / 18% share) = about 1/10% so we need to consider some strategies.

Everyone would like to purchase “Chicago style”. However, “Spicy Blend” would depend on person. To develop a strong justification, we need to expand the region and figure out which areas prefer to purchase “Spicy Blend” or not.