Case Study Amber Inn & Suites, Inc.
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Transcript of Case Study Amber Inn & Suites, Inc.
Case Study Amber Inn & Suites, Inc.
Chief 9862505 廖語婕
9862525王修彥9862529宋惠華9762508洪啟智
9862513邱揚程9862507郭惠華9862503鄭明宜981031許馨尹
Teaching Note
3
Information requirements
By Marketing Communication Mix
EXHIBIT 1
Unawareness Knowledge Preference Purchase
PersonalSelling
SalesPromotion
Advertising
Purchase Process Model
4
Developing an IMC Mixby Marketing Segment &Position
Target MarketCharacteristics
InformationRequirements
of Buyers
Nature of the Offering
OrganizationalCapacity
•Advertising creates awareness•Salespeople provide information•Sales promotion, brochures, and catalogs
•Advertising•Personal selling•Sales promotion
•Advertising•Direct marketing•Personal selling
•Break-Even Chart for comparing independent reps and company sales force
Marketing Segmentto find target customers
Marketing Position
by
ClusterPosition Map
EXHIBIT 2
Amber Inn
6
Case Analysis
1. Problem Background: Make sure the Position Strategy for Amber Inn! Make a decision to select target customers.
2. Target: Increase company revenue and make profit
3. Conclusion: Amber Inn and suites should be more focused on business
travelers. Weekend Special is offered to increase brand awareness and
occupancy. Business consignment contract with companies. Cut unnecessary marketing and advertising budgets.
7
Hotel Segment
Luxury
Upper scale
Upscale
Midscale
Economy
with foodw/o food
Ritz-CarltonFour seasons
HiltonMarriott
Courtyard
Holiday InnRamada Inn
Red Roof InnMotel 6
AmberAmberInnInn
Occupancy %’03 ’04 ‘05
ADR $’03 ’04 ‘05
PevPAR $’03 ’04 ‘05
64% 68% 69% $221 $232 $246 $113 $158 $172
66% 69% 70% $127 $132 $139 $84 $91 $98
66% 69% 70% $93 $96 $101 $62 $67 $71
55% 57% 58% $72 $74 $76 $40 $42 $44
61% 64% 65% $69 $71 $73 $42 $45 $48
53% 54% 55% $48 $49 $50 $25 $26 $98
Amber Inn 59% 62% 67% $58 $58 $57 $34 $36 $38
EXHIBIT 3
8
Marketing Position
Exhibit 4 Position Shift from revenue and elasticity view
9
EconomyHotel
MidscaleHotel
Marketing Position
Room rate price
Amenity: Facility/ ServiceLuxury
Economy
Low High
Amber Inn
Current After promotion
LuxuryHotel
UpperUpscale
HotelUpperHotel
Promotion plan:1. In weekday, target on business traveler, so we keep business promotions2. On weekend, we take weekend special to increase brand awareness and get more occupancy.EXHIBIT 5
Case: GloFish, LLC
Teaching Note
12
Marketing Channel Designs
DirectDistribution
•Use its sales•Use Internet
Indirect Distribution
•Use Intermediaries to reach target market:The type, location, density, no of channel levels
Ultimate Buyers
Retailers or Dealers
Distributors or Wholesalers
Brokers or Agents
Producer
EXHIBIT 6
13
Channel ManagementChannel Strategy
Marketing Channel Strategy and Management
Channel-selectionDecision
Multi-ChannelMarketing
DualDistribution
Channel-modificationDecision
GloFishFocus
•Marketing channel design•Channel selection: -target market coverage -satisfying buyer requirements -profitable
by
QualitativeQualitativeFactorsFactors(SWOT)(SWOT)
QuantitativeQuantitativeAssessmentAssessment(Cost model)(Cost model)
EXHIBIT 7
Fit in GloFish
15
Marketing Channel Designsin GloFish @US market
Farm-raised fish producers
End users
Specialty Retailers:Independent pet stores
Wholesalers: Chain stores
Brokers/Agents: Glofish
PET’s Mart: 700+ stores
5,000 stores
16
Case Analysis
1. Problem Background: Choose a better channel to help increasing revenue ! Make a decision to add the international market or not!
2. Target: Potential for Market Growth The less risk No more other expense happen
3. Conclusion: GloFish shall choose independent store and chain stores as
their distribution channels. No need add international market right now.
17
Conclusion Analysis
Potential for Market Growth1. The independent store and chain store are more
suitable- help the revenue directly - preview the market growth rate- estimate the revenue growth rate
2. Kiosks or Internet may have explosive growth- unsure it will happen.
3. Internet- no experience of the global market before- may spend huge resource to build up the Internet system.
The Less Risk 1. Major risky factor, genetically modified
- Chain Store don’t agree to sell 2. May impact Asia market 3. The independent stores don’t concern about the
genetically modified fish is the advantage.
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No more other expense happen1. Kiosks is too concentrated on Nov and Dec
- other month leased expense will be cost waste 2. Build up the internet system
- make the cost up- add Global Logistic expense
3. Independent store and chain store - already have the local logistic system
- save much time to make the business go live.
International Market 1. International market is necessary
- By internet, But now is not good for GloFish.2. Need to face many problems
- The illegal breeding 3. Don’t suggest to do it now
Conclusion Analysis
19
Channel-modification Decision—Quantitative assessment
EXHIBIT 8
20
Channel-modification Decision—SWOT
Independent Pet Stores Chains Stores Kiosks Internet InternationalRisk/$ Risk/$ Risk/$ Risk/$ Risk/$
S 1.5,000 retailers all overthe country2.Retail price is higherthan chain store3.More professional forFish lovers.4.Aquarium kit5.They're small but sell avariety of pets and pet-related products6.They serve people topurchase the fishconveniently
1. A majority offreshwater ornamentalfish sold in the US arepurchased from these 3chains. (Wal-mart asgreatest chain storeleader in the world.)2. Aquarium kits areavaliable in these chainstores for people who arethe first time puchase.3. The profit of GloFish'sfluorescent fish is higherthan traditonal one.4.Glofish’ s suppliersand distributors ,5-DTropical abd Segret, havebeen regular suppliers oftropical fish to majorchains store for years.
1.Can sell more than fish,like fish food, waterconditioner2.Brand promotion forGloFish3.Easy to deploy thenew/beta product4.High profit margin5.Convenience in shoppincenter
1.The marketing cost islow2. Web site:www.glofish.com.Working 24 hours ,convenient to purchase,communication andservice with customerdirectly3.Using internet toeducate the GloFish RedZebra Danio was safe
• The global market is 3times bigger than US (700 million vs 2 billion)
W 1.Their cost is higherthan the wholesalersbecause of shipping cost2.It may be hard for themto financing3.Most retailers refuse todisplay the fish underoptimal lighting
None of three majorchains agreed to carrythe Glofish product. Andit may be becauseGlofish product isgenetically modified.
1. 40% of the revenuesoccurring in Nov & Dec2. High fixed cost (highleased price range from12000 to 36000)3.Lmited professionalinformation for fish
1.Delivery cost is higherthan the price of the fish2.Customers can not seethe real fish swimmingover the tank.
1. Insufficient fund($380,000 left) forinternational campaign orexpansion2. Inexperience forinternational business(export, directinvestment, or jointventure)3. Lack of internationalchannels or businesspartners( no Agnecy)
Win
Win
Win
21
Channel-modification Decision—SWOT
O 1.Total sales of pet storesare increasing at anannual rate of 7%2. Increase total revenueof 4.8%.3.It could attract morefish aficionados than inchain stores.
1.PETsMART executivesare considering to sale theGlofish, although one ofthem said there was nodemand.2.Chain Store are majordistributions offreshwater ornamentalfish which is capable forGlofish to make bigrevenue.
Explosive growth rate ofkiosks channel
1.Some dot-comcompany alreadymarketed over theinternet, even on eBay2.People who like tosurfing in the internet ismore than before.
• Asia do not prohibitthe genetically modifiedfish
T 1.If new product doesn’t work, may lost the samemoney(500,000-620,000=-120,000)2.The number of pet storeis declining at an annualrate of 2%
The customers of chainsstore are price-sensitiveand not tropical fishenthusiasts.It meanslower margin forGloFish.
There is already havingcompetitor sold colorfulbeta fighting fish in themarket
The price of Goldfishwere competitive .Willlost money If the retailprice of each order doesnot higher than $40
• Could be illegalbreeding. Asia already have theirown fish, so if GloFishexports fish to there, itmay have somecompetition.
Win
Win