“The theory is dry, my friend, and the tree of life is magnificently green” - they usually recall the famous classic phrase when they want to say that it is time to move from words to deeds.
To complement my discussion of cinema marketing, I decided to invite all interested readers to practice marketing in practice.
Firstly, it is much more interesting for me, as the author, and for you, as readers, and secondly, it will allow adding new aspects and details of elaboration to the topic on which we are solving problems.
In addition, in the course of solving the problems I propose, any reader will be able to offer his case for public discussion. Perhaps, in this way, someone will solve some problem and one less headache.
I would like to immediately clarify the understanding of the prospects for waiting for the results of this project, so as not to mislead readers, and especially participants who offer their own options for solving problems. Obviously, we will never be able to find an unambiguous, only correct solution to the problem posed in marketing cases. And this is due, first of all, to the very nature of marketing as a science of perception. And, as has long been known: "There are no comrades for taste and color."
Therefore, the main task of the cases is not so much to get an unambiguous answer, but to study the decision-making technology itself through practical examples. Outline the range of factors that affect the result, generalize the experience of cinemas that have already looked for solutions to similar problems. And, at least, to determine the direction vector and methods for solving the problem and at least one more step closer to the cherished goal.
In general, for me personally, marketing is 50% creativity and 50% technique. Technique is marketing tools, and creativity is not only unexpected and original creative solutions, but also an intuitive variability in the use of these very marketing tools. I would compare the technology of solving a marketing problem with taking an integral. It is known that even a monkey can be taught to calculate the differential, but only Homo sapiens can take integrals. The only difference is that in marketing all integrals cannot be taken.
TOPIC: MARKET VOLUME. EXAMPLE PROBLEM.
Preamble:
Knowledge and forecasting of the size of the film distribution market is one of the key factors for the ability to correctly assess the competitive position of the cinema, its financial potential, the effectiveness of the competitive strategy, the prospects for recoupment, the need and size of investments.
Case No. 1-1
Conditions:
The average monthly actual box office in the city of N with a population of 100,000 people, with one five-screen cinema in the shopping and entertainment center operating for two years, is 3.98 million rubles. and an average monthly attendance of 20,000. Another four-hall cinema has opened in the new mall. The repertoire policy of cinemas does not differ significantly. The pricing policy of the new cinema differs from the existing one by 30% lower prices.
Task:
Determine the total average monthly box office of the city N, if the operating cinema has adjusted its prices downward by 30%?
Additional information:
Parameters of the operating shopping and entertainment center: area 20,000 sq. M., Standard content of tenants + zone of children's play machines, distance from the city center -700 m, next to a sleeping area. The cinema has the largest auditorium in the city.
Parameters of the new mall: area 25,000, standard tenant occupancy + slot machine zone + fitness center, distance from the city center - 0 m.
An approximate solution:
First, let's look at the possible change in cinema attendance in general. Let's define the factors that can affect the change in attendance:
- a) Reducing the cost of tickets
- b) Interest in the new cinema
- c) Advertising campaign for the opening of a new cinema
- d) Responsive advertising activity of the operating cinema
- e) Improvement of service availability (distance, total number of sessions)
Let's make an assessment of the possible change in attendance based on the influence of each factor separately.
a) Reducing the cost of tickets- can affect both the frequency of visits to cinemas, and the attraction of an additional audience, for which the price was a fundamental factor in making a decision. Since the decrease in cost was significant, it can be assumed that this factor will increase the attendance of cinemas from 10 to 15% with a gradual achievement of this result.
b) Interest in the new cinema- most likely, it will provide a local surge in the attendance of a new cinema during the first one to two months, mainly due to visits to the previously operating cinema, this factor can provide an increase in attendance up to 20-25% in the first month, with a subsequent decrease to 0%
d) The responsive advertising activity of the operating cinema - will not have any significant effect on attendance and will most likely affect the general excitement around film distribution in the city, however, one can count on an increase of 3 to 5%, mainly due to a synergistic effect with a decrease in prices
e) Improving service availability(distance, total number of sessions) - at the initial stage, it will not give any significant results, but in the subsequent period it can bring up to 10% increase in attendance.
Output: the total number of visits to cinemas as a whole can increase from 27% to 55% in the first month of a new cinema and with subsequent stabilization to the level of 23-30%. Taking into account the decrease in the ticket price by 30%, it can be assumed that the box office of the city in the first or second month of the new cinema's operation will increase by 10%, followed by stabilization at the previous level or even with a decrease of 3-4%.
Perhaps for this task you will offer a different reasoning and formulate a different conclusion. Let's think together, offer your solutions.
Below I propose two similar tasks as the development of this one.
TASKS FOR PROCESSING.
Case No. 1-2
Conditions:
Match conditions Case No. 1-1
Task:
Determine the average monthly box office for each of the cinemas.
Case No. 1-3
Conditions:
Match conditions Case No. 1-1
Task:
Determine the total average monthly box office of the city N, if the operating cinema has left prices at the same level?
_______________________________________________________________________
Case No. 1-4
Conditions:
The volume of the annual cinema market in the region is determined by the formula V = P * K * S, where V is the actual volume of ticket sales per year, P is the number of inhabitants in the settlement, K is the attendance rate, S is the average ticket price
Task:
Create a formula for calculating the values of K and S, using socio-demographic, economic, migration and other indicators of the state of the region. All indicators must be unambiguous, have specific values, and be freely available.
Possible indicators:
Average salary, number of students, number of schoolchildren, average age of the public, coefficient of production diversification, distance from a more developed center, number of cinemas and the level of their equipment and multi-screening, population of the suburbs, etc.
N Some explanations for this case. Based on the variety of factors influencing the size of the theatrical market and the absence of any clear proven market dependence on these factors today, most likely this task has a pronounced futuristic character. I dare to assume that a couple of years will not be enough for some research institute to find the coveted solution. And given the constant variability of the very number and composition of influencing factors, the search for this solution generally loses its meaning.
Nevertheless, knowing the formula for accurately calculating the size of the theater market is one of the most cherished desires of investors. Therefore, I propose to use the only scientific approach that is always at hand to find a solution to this problem - the scientific poke method. Do not hesitate, suggest any creative solutions, in the end, a combination of many factors can be expressed in one factor, and, at first glance, does not in any way affect the activity of moviegoers.
Try this challenge for your own city.
KEIS 1. Intellectual property: implementation problems in the global economy (on the example of Microsoft's activities in China)
Microsoft is the world's largest personal computer software company, creating MS-DOS and then WINDOWS. These programs, which are an operating system and a graphical user interface, respectively, are constantly used in more than 90% of personal computers around the world. In addition, Microsoft has many in-demand software applications, including the OFFICE and OFFICE SUPPORT software suites. An integral part of Microsoft's international strategy was expansion into China, where 5 million personal computers were sold in 1998. With a population of 1.5 billion, China represents a potentially huge market for Microsoft. Microsoft's goal is to increase sales from zero in 1994 to $ 200 million in 2002.
However, during its implementation, the company was forced to overcome very serious difficulties - the unlicensed use of its own programs. About 95% of all software on the Chinese market in 1998 was unlicensed. The company suffered heavy losses from this. Most of the company's products used in China were illegal copies that were made and then sold without any benefit to Microsoft. This is obvious to company executives. A few buildings from the company's Hong Kong office, there is a small store that sells CD-ROMbi's, each stuffed with a dozen computer programs that would amount to $ 20,000. The suggested price is HK $ 500, which equates to $ 52! According to the company, the Chinese government itself is setting a bad example. Microsoft's lawyers regret to state the fact that Beijing does not provide for the purchase of computer programs in the budget, forcing its bureaucratic apparatus to find cheap solutions regarding software. Based on this, Microsoft claims that most of the government uses pirated software.
Compounding the situation further, China is becoming a massive exporter of counterfeit computer programs. Customs in Hong Kong seized a shipment of 2,200 such discs on their way from China to Belgium. The problem arises because the Chinese authorities do not enforce their own laws. Microsoft faced this when it first tried to use the Chinese legal system to sue software pirates. The company has coerced officials in the Chinese province of Guangdong to raid the manufacturer of counterfeit holograms that Microsoft uses to validate the instructions for its programs. The Chinese authorities condemned the counterfeit manufacturer, admitted that copyright infringement had occurred, but paid Microsoft only $ 2,600, and the pirate company was fined only $ 3,000.
To compete with counterfeit software, Microsoft cut prices of computer software in China by nearly 200% in October 1994. This promotion probably had little effect, since the programs still cost between $ 100 and $ 200, compared to illegal copies of the same programs that are offered at prices ranging from $ 5 to $ 20.
Another tactic of the company was to lobby the US government to influence the Chinese authorities in order to comply with their own laws. Part of the attempt to lobby for their interests was the entry of "Microsoft" into a kind of guerrilla war. Company representatives rummaged in dumpsters, paid for local residents for espionage services, impersonated businessmen collecting money to collect evidence of piracy, which was then passed on to the US trade authorities. This tactical move worked, as the US government is currently trying to influence China: US support was the main condition for China to become a WTO member. The US has said it will not support China's membership until China enforces intellectual property law.
The demand was backed up by threats to impose tariffs of $ 1.08 billion on Chinese exports until China agrees to tighten its enforcement. After tense alienation, in February 1995, China relented and agreed to US demands. The Chinese government began enforcing intellectual property laws, shutting down factories that the United States said were making counterfeit American goods, recognizing US trademarks, including Microsoft, and instructing government ministries to stop using pirated computer software.
In addition to these actions, Microsoft announced that it will work with the Chinese Ministry of Electronics to develop a Chinese version of the WINDOWS operating system. Microsoft's principle is that the best way to stop the Chinese government from using pirated software is to do business together. Once the government profits from increased sales of legitimate Microsoft products, it will have an incentive to reduce sales of counterfeit computer software.
In a sign that Microsoft is making some progress in solving the piracy problem in China, a Beijing court in March 1999 paid Microsoft 800,000 yen. ($ 744,720) in compensation after two Chinese companies were found guilty of violating the Copyright Act. This is the first time Microsoft has filed a pirated software case in a Chinese court. Although the compensation in monetary terms was small, the victory means the emergence of trends of this kind in China.
CASE 2. "Langouste Wars"
Once upon a time Louisiana was the property of France. Napoleon sold this territory to the United States during the presidency of Thomas Jefferson, but many French people stayed there. After some time, their descendants became the creators of a special culture "Cajun", which is now famous in the United States for its unique music and cuisine. This cuisine is based on the "sacred lobster", as they like to call it in Louisiana. (Langoust is a crustacean that is an ancient inhabitant of the Louisiana lakes.) Lobster is the main ingredient in crayfish pies, crayfish soup, okra pod soup. Like wine for France, it is a symbol of local culture. His breeding is a major industry that generates $ 300 million a year in revenue for Louisiana farmers. At least, the income was that until the competitors in the face of the Chinese appeared on the market.
In the early 1990s, Louisiana importers welcomed the development of the Chinese lobster industry to meet the growing demand for them. In China, the lobster farming industry has proven to be very lucrative for farmer entrepreneurs. Lobsters from China first appeared in Louisiana in 1991. Although the indigenous people immediately noted that Chinese lobsters were not tasty enough, consumers did not seem to notice any difference. Perhaps they liked the price, which was $ 2-3 per pound depending on the season, compared to $ 5-8 per pound of Louisiana lobsters. Thanks to the significant price advantage, sales from Chinese imports soared from £ 353,000 in 1992 to £ 5.5 million in 1996. In 1996, Louisiana employees estimated that 3,000 jobs were lost by the local industry. These were mainly low-paid jobs for lobster cleaners. This was due to an increase in the market share of Chinese imports.
In 1996, the Committee for Research and Promotion of the Lobster Industry sent a petition requesting an anti-dumping campaign by the Committee on International Trade, the "right hand" of the US government. The petition claimed that Chinese lobster producers were dumping their goods, selling similar ones at low prices in order to force Louisiana producers out of business. It was decided to establish a 200 to 300% import tax on Chinese lobsters. Louisiana spent $ 350,000 to support this promotion.
Lawyers representing the Chinese spiny lobster industry justified the low prices on lower farming costs rather than a dumping campaign. One Louisiana Chinese lobster importer noted that 27 processing plants supplied his company. The workers in these factories were provided with housing and other amenities, plus 15 cents an hour, or $ 9, for a 60-hour week. The same lawyers noted that Chinese lobsters turned out to be good both for individual American buyers, who thereby saved money and, in addition, were uninterruptedly provided with them, and for the restaurant business in Louisiana, since production became more economical. The lawyers also noted that this action does not protect the interests of American buyers, since it is nothing more than an attempt by Louisiana lobster producers to restore their monopoly on the market, thereby making more profits.
However, the Committee on International Trade remained deaf to these arguments. Using the arguments more typical for the characters of the work "Alice in Wonderland", the Committee substantiated this by the fact that China is a country with a "non-market economy", since it is not a member of the WTO. The Committee then took into account the prices of the “market economy” country, Spain, in order to establish the true market value of the lobsters. Since lobsters in Spain are sold at twice the prices in China, which is almost the same as in Louisiana, the Committee concluded that the Chinese were engaged in dumping. In August 1997, the Committee levied a tax of 110 to 123% on imports of Chinese lobster, thereby eliminating the price advantage that the Chinese enjoyed. In an effort to protect American jobs, the committee sided with Louisiana producers, disregarding the interests of American buyers who now have to pay a higher price for lobster.
KEIS 3. Continuation of automobile wars: USA - Japan
On the international stage, Japan has long supported free trade agreements. However, the US government has repeatedly stressed that the Japanese approach to this is cynical and neo-mercantilist. The Japanese, US officials said, are happy to establish international agreements that open foreign markets to Japanese companies' goods, but at the same time they are protecting their home market from foreign competition. As proof, officials point to the huge imbalance in trade between the United States and Japan, which totaled over $ 80 billion in 1994 (the United States imported $ 80 billion more from Japan than it exported).
In 1994, Japanese economists conducted a study that showed that food, cosmetics and chemical industries are the main areas in which the Japanese government protected Japanese manufacturing from external competition through various import restrictions, such as quotas on the number of products that can be imported into Japan. According to the estimates obtained, in the absence of obstacles protecting these areas from external competition, imports would double and prices in Japan would drop significantly.
The studies conclude that lowering commodity prices in these areas would save the average Japanese consumer $ 890 in 1989. However, at the same time, there would be a decline of more than 20% in production in certain areas, including the cultivation of wheat, oilseeds, tobacco leaf and the production of canned fruits and vegetables, cosmetics. Trade liberalization would result in the loss of more than 180,000 jobs in Japan. It would seem that the Japanese government is shielding these areas from more effective external competition in order to keep jobs even if the average Japanese consumer is forced to buy goods at higher prices. Guardianship of the food sector may be justified by the fact that Japanese farmers who are interested in this protection are a powerful political force in Japanese society.
The US government claims that Japan has also adopted a neo-mercantilist stance by importing cars and car parts. Japan is the main exporter of cars and parts to America and Europe, but historically it has imported only 3% of cars and 2% of parts. Other developed countries import 22% to 78% of cars and 16% to 60% of parts. The Japanese government is restricting imports to Japan by imposing strict safety checks on imported goods, designed to increase the cost of foreigners trying to sell goods in Japan, according to US trade negotiators. For example, the US Department of Commerce states that the introduction of front brush protection as a vehicle safety feature is mandatory only in Japan. To do this, it is necessary to carry out a series of works, including production, testing, additional inspection, the cost of which reaches $ 3,000 per vehicle.
The Japanese government denies such accusations. Government officials argue that American auto companies are not popular in Japan because their products do not meet the needs of the Japanese market. They point out that while 80% of the cars sold in the Japanese market have engines of less than 2,000 cc, no American company sells a car in Japan with the same performance. They also indicate that the share of imported machinery and parts is increasing in the Japanese market. From 1990 to 1994, for example, the share of imported cars in the Japanese market increased from 5.1% to 8.1%.
CASE 4. Costs of US protectionism
The United States often presents itself as a country that is committed to unlimited free trade. In negotiations with trading partners such as China, the European Union and Japan, one often hears assurances from American trade representatives that the US economy is open with few customs duties. Despite the fact that customs duties on goods imported into the United States are indeed lower compared to other industrialized countries, they still occur. Several studies have shown that duties cost US buyers about $ 2 billion a year during the 1980s.
A study by Gary Hoofbauer and Kim Elliot at the Institute for International Economics examined the impact of customs duties on economic activity in 21 industrial sectors with annual sales of $ 1 billion or more that the United States carefully shielded from external competition. These industries included the manufacture of clothing, ceramic tiles, bags, and the manufacture of sugar. In many of these industries, customs duties were originally introduced to insulate American firms and their employees from external competitors offering lower prices. The usual rationale for imposing tariffs was that without such support, US firms would go bankrupt, causing a significant increase in unemployment. Thus, the duties were presented as having a positive effect on the US economy, not to mention the US Treasury, which benefited from the corresponding revenues.
The study, however, found that while the introduction of these duties saved 200,000 protected industrial jobs that would otherwise have been lost in the event of external competition, they cost US buyers an estimated $ 32 billion. year in the form of higher prices. Even after the revenue from these fees went to the US Treasury, the total paid by the nation was still $ 10.2 billion a year, or more than $ 50,000 per job saved.
The economists who conducted these studies have shown that these figures have played down the actual costs incurred by the country in imposing these duties. They are of the opinion that by making imported goods less competitive with American goods, tariffs allowed local producers to charge higher prices because they did not have to compete with cheaper imports. By weakening competition, even slightly, these taxes discouraged firms from becoming more efficient, thus slowing economic progress. Moreover, the authors of the study noted that if the duties had not been introduced, some of the $ 32 billion released annually would have been spent on other goods and services. Growth in these industries would offer new jobs, offsetting the loss of 200,000 jobs in protected industries.
CASE 5. Wal-Mart International Expansion
Founded by Sam Walton in the 1960s, by the early 1990s, Wal-Mart had grown to be the largest discount retailer in the United States, with annual sales of $ 32.6 billion. Wal-Mart's impressive growth, evolved from a small store in Arkansas to a national leader, built on the work of a team of first-class managers who introduced innovative strategies based on the company's commitment to providing consumers with a wide range of high-quality products at a low cost.
The firm pioneered the development of a distribution system in which central warehouses were strategically positioned to serve clusters of stores. This allowed us to reduce costs in terms of inventories and logistics. The firm was also one of the first to use computerized information systems to track internal sales and pass this information on to suppliers. The information supplied by these systems was used to determine the pricing strategy and stock of items in the warehouse. Wal-Mart continues to be the leader in information systems today.
All Wal-Mart stores, distribution centers and suppliers are connected to each other through sophisticated information systems and satellite communications that allow daily adjustments to orders, stocks and prices. In addition, the company is renowned for a dynamic and elite culture that delegates key decision-making to store managers, department managers, and individual workers (whom Wal-Mart refers to as “colleagues”). Wal-Mart is known to be very good at treating its employees, but at the same time requires them to actively participate and perform their duties perfectly. This culture is supported by employee equity in profit sharing and ownership. In this way, Wal-Mart has created a culture and control system that provides incentives for employees and managers to do their best for their company.
Despite its successful development, by 1991 Wal-Mart was in serious trouble. With 1,568 stores across the country, his development prospects in the United States were very limited. Wal-Mart decided to try to expand outside the US and create an "international brand name." The company discussed expansion options, including licensing its brand name for a franchise, but then decided it would be best to develop with wholly owned Wal-Mart foreign subsidiaries that would permit such investment. The company concluded that its competitive advantage was based on a combination of culture and supporting information and logistics systems, and that such culture and systems would be difficult to transfer to franchised enterprises.
In 1992, Wal-Mart began its risky ventures with 6 stores in Mexico. By the end of 1997, Wal-Mart had 402 stores in that country, in addition, 144 in Canada, 13 in Puerto Rico, 9 in Argentina, 8 in Brazil, 3 in China and 3 in in Indonesia. Wal-Mart also announced its decision to buy 21 Wertkauf supermarkets in Germany, which was the first joint venture in Europe. Following one strategy, Wal-Mart moved several American workers there for 2–3 years after opening a store in another country to help establish the company’s system and transfer Wal-Mart’s corporate culture to new employees.
It seems that this strategy still works. Wal-Mart's international stores generated more than $ 5 billion in addition to the company's 1997 revenue of $ 120 billion. They are still profitable.
CASE 6. Rise of the Finnish "Nokia"
The cell phone industry is one of the stories of rapid economic growth seen in the 90s. The number of cell phone users is constantly increasing. By the end of 1998, there were already about 150 million users worldwide, up from 10 million in 1990. Three firms dominate the international cellular equipment market (meaning cell phones, base station equipment and electronic switches): Motorola, Nokia and Erickson. Of the three, Nokia's rapid rise was the most surprising.
Nokia is located in Finland, a country that has not been leading in this kind of technology. In the 1980s, Nokia was a sprawling conglomerate whose activities included the manufacture of tires, paper products, household appliances and telecommunications equipment. Today it is a concentrated 10 billionth manufacturer of telecommunications equipment, second only to Motorola. Nokia's sales and revenues are growing at over 30% annually. How did this former conglomerate become the world's leader in cellular equipment? The answer can be found in the history, geography, politics and economy of Finland and its Scandinavian neighbors.
It all began in 1981 when the Scandinavian countries came together to create the world's first international cell phone network. With a low population density, the cold territories of the Scandinavian countries created all the prerequisites for the peoples living here to become pioneers in this area, since the costs of conducting traditional wire telephone communications were much higher than in many other countries. Therefore, telecommunication services were in high demand. People driving cars in the Arctic in winter, the owners of remote northern houses need telephones to call, for example, someone for help in case of trouble. As a result, Sweden, Norway and Finland became the first countries in the world to take the idea of cellular telecommunications seriously.
They found that while a user was paying about $ 800 for wireline telephony to remote areas, those same areas could be connected to wireless cellular for as little as $ 500 per person. As a consequence, by 1994, 12% of the population in Scandinavia owned a cell phone, compared with less than 6% in the United States, the second most developed market in the world.
Nokia, as a supplier of telecommunications equipment for a long time, had an advantageous position, but there were other conditions in Finland that helped it develop its competitiveness. Compared to other developed countries, Finland has never had a national telephone monopoly. In contrast, telephone services in the country were carried out by about 50 autonomous local telephone companies, whose boards of directors set prices as a result of a referendum (which means low prices). These independent and price-conscious phone providers prevented Nokia from gaining a monopoly in their country.
With typical Finnish pragmatism, they would work with the cheapest supplier, be it Nokia, Motorola, Erickson or anyone else. This situation was in stark contrast to that which prevailed in most developed countries until the late 1980s and early 1990s, where local telephone monopolies typically bought equipment from a leading local supplier or manufactured it themselves. Nokia has responded to this pressure by trying to do its best to lower production costs while remaining a leading technology company.
The implications of these efforts are clear. While Motorolla remains the number one cellular equipment firm, the once-inconspicuous Finnish firm Nokia is suddenly on the horizon. And it is Nokia, not Motorola, that is the leader in digital cellular technology, which is the future. Nokia is leading the way in this area because Scandinavian countries were the first to switch to digital technology - five years ahead of all other countries.
Spurred on by its low-priced Finnish buyers, Nokia now has the lowest cost system of any global cellular equipment manufacturer, with more revenue than Motorolla.
CASE 7. The rise of software in India
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A case is a specific situation in the life of a firm or company, described in all details: starting with a problem, defining a goal, setting goals and ending with a description of the results.
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The case is like a photo album of a newborn, in which loving parents collect details of the baby's life. They glue an envelope with the first curls, a tag from the hospital, record the dynamics of weight and height, indicators of speech development and fine and gross motor skills, daily photograph and video not only the child, but also those who participate in the upbringing process, write dream letters about how they want to see him in the future and what efforts they make to bring up a worthy person.
How the cases are used
Case (case-method - "case-study") was originally invented 100 years ago in the United States to teach management disciplines at Harvard School. The teachers asked successful businessmen to describe in detail the history of the company's creation, and based on these stories they created situations (“presented problems”), the solutions to which were found by the students. This teaching method is considered one of the most productive. In addition, today at an interview when applying for a job, you may be asked to solve a case.
In 2010, the term Adaptive Case Management (ACM) appeared. This technology allows you to find an effective solution to the problem. At the same time, ACM participants use established templates that they adapt to a specific situation, i.e. select the best from what has already been used before.
Marketing case
It is a powerful sales tool to be used wherever you can visualize the results of what was BEFORE and AFTER.
The case scheme is standard:
- Detailed description of the situation.
- Identifying and defining the problem.
- Setting goals.
- The process of solving problems and achieving a goal.
- Result, comparison with initial data.
- Reviews.
Types of cases
Marketing cases can be divided by text volume into:
- short - about 1.5-2 thousand characters;
- medium - about 500 words;
- long - 7000-10000 characters.
Some researchers argue that longer case stories with an engaging storyline generate positive emotions and gain more likes.
It is better to create at least 2 versions of the text in terms of volume: one will be an annotation, and the second will be a detailed story about how your product solves customer problems.
By form:
- textual - the presence of pictures, tables, graphs and even animations is assumed.
- text and presentation - it turns out brighter than the text version.
- the video is the most expensive from a financial point of view, because you need to write a script for a video, pay for the work of the operator and designer.
Use of cases in marketing, advertising
Potential clients trust more real cases, which make it possible to assess the level of professionalism of employees and understand the specifics of building strategies in the implementation of projects, the validity of the cost of services or a product.
The task of a case study in advertising is to demonstrate a service or product in action, to present convincing answers to all objections of a potential buyer, to convince a client of the need to purchase the company's goods. The case is used to more effectively promote the site, any services or product.
Case objectives:
- Provide material that will show clients the entire process and scope of work to solve the problem.
- Prove to the client that the company has sufficient positive experience in achieving the goal.
- Show the effectiveness of the decisions made by the company.
In addition, there is one more task of describing the case - it is an opportunity to analyze the work of your company and evaluate what helps to achieve the goal and what hinders.
How to analyze a case
It is necessary to analyze everything that was done, using, first of all, statistics and evaluating the final result.
- Evaluate the processes, determine which are successful and which are not.
- Pay attention to team coherence.
- Answer the question: "Are the costs justified to achieve the goal?"
Analysis of the case will allow you to understand what mistakes were made. You will understand how to avoid them later.
How to write a good case study
Successful cases are selling cases. When developing them, you need to remember about 10 rules.
- Write a bright and catchy headline. They can be of two types:
- headline-problem: How to quickly and easily make a stylish renovation in your apartment?
- title-result: Dream apartment in 30 days!
- Build an interesting story from your client. Tell us about his problem and how you dealt with it.
- Accompany the narration with visual information - tables, graphs, diagrams. Present your services or products in a favorable light.
- Write in clear language for your target audience. Eliminate confusing terminology and professionalism. Use simple, clear sentences.
- Compare the situation before and after. Show some subtleties in overcoming difficulties and successfully completing a project. Quality design is just as important as numbers.
- Add reviews of customers, employees.
Cases allow you to tell about your company. They increase credibility and attract customers.
Experience from British Airways, Guinness, Oreo, Pedigree and other famous brands.
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Founded in 1996, the international Jay Chiat Awards recognize the best marketing strategies around the world. At various times, the jury included General Electric Creative Director Andy Goldberg, YouTube Marketing Director Daniel Tite, Ogilvy Strategy Director Gavin May and others.
1. Under Armor
In 2014, the sportswear brand Under Armor launched the "I will what I want" ad campaign to promote the women's collection.
Sales of women's apparel accounted for 17% of Under Armor's total revenue in 2013, and women perceived the brand as aggressive, performance-driven and “definitely not for us,” the company said.
Under Armor's mission was to shift the brand's positioning for women, from competing for first place to focusing on personal achievement. The idea behind the ad campaign was that in a culture where women are told who to be and what to do, the only way to free themselves is to build a personal vision of success.
Under Armor told the story of American Ballet Theater ballerina Misty Copland, who was not accepted into ballet schools due to her “wrong body”. Despite this, she became the first African American soloist for the American Ballet Theater.
The brand has received 5 billion mentions online, and the women's collection is up 28% from pre-promotion, the company said.
The ad campaign was developed in collaboration with agency Droga5, which has worked with Google, Pizza Hut, MailChimp, an email marketing service, and others.
2. British Airways
5. Newcastle brown ale
The American beer brand Newcastle brown ale was created in the city of Newcastle in 1927. According to company representatives, they never tried to create unnecessary noise around the brand, but positioned it as a good beer for “ordinary honest guys”.
The company had to think about new ways to increase sales with the arrival of competitors who regularly organized activities with users online.
The agency analyzed user discussions on social networks and found that one of the most popular topics is the Super Bowl, the final game for the US National Football League title. Droga5 then examined other brands' ad campaigns and concluded that their ad activity peaked on game day. Newcastle brown ale and Droga 5 decided to advertise for the week before the game instead.
The campaign was held under the slogan “As if we did it”. The idea was to show what kind of advertising Newcastle brown ale could do before the game if the company had the money.
One of the campaign banners
The agency has developed 15 banners for online promotion and an animated video featuring actress Anna Kendrick.
Along with this, Droga5 released a video in which Kendrick talks about his "role" in advertising.
As a result of the campaign, Newcastle brown ale received 600 media mentions, 10 million banner ad views and an 18% increase in sales.
6. Oreo
Mondelez's Oreo cookie brand peaked in sales in 2012, according to company officials. In the same year, the company turned 100 years old, and the question of further development arose before it.
Consumers associate Oreo with childhood and parenting. The company representatives set themselves the task of updating the brand positioning and promoting the Oreo brand instead of advertising cookies: “We focused on Coca Cola and Lewis - this is not just soda or jeans, but something more”.
Oreo hired creative agency Martin Agency to develop its ad campaign, which has also collaborated with Subway, Dunkin Donuts, Tic Tac and other brands.
The campaign was based on the idea of awakening consumers' curiosity about the world. Martina Agency developed the Wonderfilled platform, which posted videos starting with the question "what if we give Oreo ...?" For example, in the Oreo video, a vampire is asked to drink milk with Oreo instead of blood.
According to company representatives, the number of online mentions of Wonderfilled exceeded 56 million. Well-known publications wrote about the campaign: The New York Times, Creativity Online, Ad Age, and the videos became the "advertisement of the day" on the AdWeek website. Oreo's sales figures increased from 8.1% to 13.2%.
7. iPhone 6
In 2014, Apple released two smartphones: iPhone 6 and iPhone 6 Plus. According to company representatives, the gadgets were successfully sold, but users often compared them with other smartphones in terms of characteristics: battery level, camera, speed, and others. Apple has decided to change the attitude of consumers towards the brand, so that they choose the iPhone regardless of the characteristics.
The company analyzed what users value most about the iPhone 6. It was found to be the quality of images and videos.
Apple hired creative agency TBWA to develop the ad campaign. It found that more than 91 million posts with the hashtag have been published on Instagram. Also, many users-photographers indicated in the description of their profiles "IPhone only". This meant that the published photos were taken with the iPhone's camera.
8. Pedigree
In 2010, Pedigree faced a number of difficulties: increased competition and a lack of understanding in which markets to invest - developed or growing. Also, the company was faced with the task of updating the brand positioning, which at that time had not changed for twenty years.
Pedigree hired BBDO to develop an advertising campaign. It offered to reach out to consumers' feelings and talk to them about why they love dogs and what role animals play in their lives.
Pedigree has done research and found that dogs have a positive effect on humans. The company also found that consumers love dogs for their innocence and loyalty. According to Pedigree representatives, over time, people lose their innocence and innocence, so the time spent with the dog is "an opportunity to return to yourself."
BBDO has produced several TV spots about the relationship between a dog and a person: “ Boys in the Top 50 Emotional Ads Rankings FeelMore.
9. Rei co-op
Rei co-op outdoor brand was founded in 1938. According to company representatives, the main thing for Rei is not profit, but employees and customers. The company has created a community of outdoor enthusiasts around the brand, which includes more than 5 million members.
Rei faced competition in the marketplace and hired creative agency Venables Bell and Partners on the condition that the promotion budget was limited. At the time of launching the ad campaign, Rei had never shared her brand story with customers.
The campaign was slated to launch over the American Thanksgiving holiday, followed by Black Friday sales. The agency conducted a study of Rei's target audience and found that consumers do not want to spend weekends in stores. Then Venables Bell and Partners came up with the idea of closing all Rei co-op stores on Black Friday and inviting employees and customers to go out of town together.
According to the agency, 1.4 million people spent Black Friday with Rei. More than 170 organizations closed that day in support of the campaign, and parks allowed protesters free of charge.
Rei also attracted 1 million new community members, received 1.2 billion mentions on social media and became the top 11 Twitter trends in 2015.
10. Ad Council
Ad Council, a nonprofit social organization, has launched a "love has no label" ad campaign.
The Ad Council conducted a study and found out several facts, for example: one in five representatives of sexual minorities in the United States feels rejected by society, six out of ten African Americans do not like the way others are treated, up to 85% of students have been bullied. The Ad Council also found that, while doing so, almost all Americans believe that they are not judging anyone.
The purpose of the ad campaign was to help Americans reconsider their beliefs. To do this, the Ad Council invited the digital agency R / Ga to cooperate, which has worked with Lego, Nike and other companies.
On February 14, 2015, the Ad Council organized a video installation. Viewers saw real people, whose movements were duplicated by the "X-ray image" on the other side of the screen. According to company representatives, within 24 hours the video was watched by 11 million users.
As a result, the Ad Council received a total reach of more than 110 million views, 825 thousand likes and 1.6 million shares on social networks.
Introduction
The textbook "Marketing Practicum" on the discipline "Fundamentals of Marketing" is a necessary addition to the textbook "Fundamentals of Marketing" // А.М. Lavrov, O. N. Kotova, O. P. Brabander. In the structure of the tutorial, the following elements can be distinguished:
General characteristics of the applied system of assessing students' knowledge (rating).
Topics of practical exercises, which are a logical continuation of the lectures.
Additional materials on topics, both theoretical and applied, that can be used by students to prepare for practical exercises, tests, solving cases, and performing tests.
Cases for the main sections of the course.
Topics of tests, essays.
The manual is based on the active use of the case study method as the most demanded method of acquiring practical skills in the field of marketing activities. The case study method has undoubtedly occupied a key position in management education for many years. Better than any other method, it teaches marketers to solve problems based on specific conditions and with factual information. A case is a specific practical situation that tells about an event (or a sequence of events) in which enough problems can be found. The situation describes real people at the time of making an important decision, faced with the need to take some action and be responsible for the consequences. It is important to keep in mind that the cases describe real events that, given a shortage of resources, do not lend themselves to a uniquely correct solution. This tutorial uses both a master case and mini-cases. Master Cases are detailed cases containing additional information. Such cases are often used in team case competitions in business schools. Not all of the information presented in the case is necessary for a solution. The task is to analyze the structure of the case, select important information, demonstrate a logical sequence of reasoning and formulate the final solution. Mini-cases are practical situations that describe real business problems in a concise form. In conditions of a lack of information and time, the student must, if not offer a solution to the problem, then develop an analysis strategy. When solving a mini-case, the most interesting is not only the solution itself, but the logic, approach and analysis of the situation, on the basis of which the conclusion is made. The cases in this study guide were developed taking into account the business practice of Russian and foreign companies based on analytical materials from the magazines Expert, Secret of the Firm, and Company. In addition, additional materials are offered to students on a number of topics.
The purpose of the development of this tutorial and implementation in the educational process consists of activation of theoretical knowledge of students and the acquisition of practical skills in the field of making basic marketing decisions.
To assess the knowledge of students, it is proposed to use a rating score. The solution of cases receives the highest scores. The case is estimated at 3 points, subject to the fullest possible disclosure of the problem and a detailed description of the recommendations. Stating of textbooks is not allowed. Tests are evaluated at 2 points, provided that 100% of correct answers are given, respectively, with 50% of correct answers, the student receives 1 point, etc. An essay is an independent work of students in writing, 1-2 pages in volume on the proposed topic. It is assessed as the independence of the student when scheduling essays, as well as erudition, and knowledge of practice and the use of periodicals and Internet resources, links to which are required. The maximum score is 1 point. Also, to consolidate knowledge on a number of topics, tests are offered, the maximum score for which is 3.
On topics 1, 2, 4, 7, tasks are offered for those wishing to receive bonus points. To receive bonus points, you must present the completed work to the teacher within the specified time frame - 2 weeks after studying the relevant topic. The abstract must be formatted in accordance with the following requirements: 15-20 typewritten pages, font 14 Times New Roman, paragraph 1.5, margins of 2 on all sides, be sure to contain a list of sources used at least 15 sources.
A student who does not attend a seminar for a good reason can work within 2 weeks of a missed seminar on a working Saturday. Late delivery of a case, essay, test and control work is estimated with a coefficient of 0.75. For students with free attendance, the completion of all checkpoints is mandatory.
The final assessment of knowledge on the course "Fundamentals of Marketing", taking into account the use of ratings in practice, is presented as follows:
91-100 points - "excellent"
71-90 points - "good"
41-70 points - "satisfactory"
< 40 баллов - «неудовлетворительно»
The curriculum provides for 30 hours of seminars. In total, according to the results of the internship, the maximum number of points is 80, of which 70 points a student can gain when fulfilling the plan of internships and 10 bonus points for completing essays, preparing for a scientific-practical conference of students and young scientists, as well as scientific articles counted as one excellent answer to exam theoretical question. On the exam, a student can score a maximum of 30 points - 10 points each for 2 theoretical questions and a practical question that provides a solution to the situation. The problem in the situation correlates with the topic of the student's coursework. The scale of assessments on the exam is as follows: a score of 10 points corresponds to an "excellent" grade, 7 points - "good", 4 points - "satisfactory", 1 point - "unsatisfactory". Table 1 shows the plan of practical lessons in the discipline.
