1. Chick-fil-A restaurants want to find out the lifetime value of their satisfied and highly satisfied consumers. A satisfied consumer visits Chick-fil-A 3 times a month and spends $9 each time. On average this type of consumer purchases products from Chick-fil-A for 4 years. A highly satisfied consumer visits Chick-fil-A 5 times a month and spends $12 during each visit. On average a highly satisfied consumer purchases products from Chick-fil-A for 8 years. Calculate the lifetime value of (i) a satisfied consumer; and (ii) a highly satisfied consumer. What is the implication of this lifetime value calculation?
2. A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company’s target-return price for this product.
3. A marketer wants to market a product. The unit variable cost for producing this product is $16. The fixed cost is $400,000. The marketer expects to sell 80,000 units of the product and wants to earn a 30 percent markup on sales. How much should the markup price be for this product?
4. When a Mexican distillery offers rebates to its current customers, what growth strategy is the company using?
Q5. Mimi Couturier is a design company that specializes in formalwear for women. The company’s fashion innovators use computer-assisted design software to create what they think women should wear. The company regularly hires industry experts to examine construction work areas to find waste and inefficiencies that can be eliminated. Its fashion innovators have expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. What should the company do to avoid this occurrence in the future?
6. As a marketing researcher of Matrix Private Limited you have been asked to forecast the demand for your new range of body wash if a discount of 10 percent is offered on each unit sold. Identify the research category into which this market research falls, i.e., is this exploratory, descriptive, or causal research? Why?
7. Jane is a marketing researcher of a cellular service providing firm. She is conducting market research before the firm decides to launch its 4G services. After deciding on the research approach and instruments, what is the next step that Jane should follow? What decisions is she required to 3 make in this step?
8. During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap
9. Nichepro Technologies, who were mainly into producing personal computers and laptops, have now decided to produce Nichepro health care products. Explain the branding strategy advocated by the company.
10. Kellogg’s uses its corporate brand name with its individual product brands as with Kellogg’s rice krispies, Kellogg’s raisin bran, and Kellogg’s corn flakes. Which branding strategy is being used by the company?
11. When Sony introduced the world’s first high-definition television to the Japanese market in 1990, it was priced at $43,000. This helped Sony to scoop the maximum amount of revenue from the various segments of the market. The price dropped steadily through the years — a 28-inch Sony HDTV cost just over $6,000 in 1993, but a 40-inch Sony HDTV cost only $450 in 2014. What pricing strategy did Sony use here?
12. Dormentor Inc. produces, converts, and markets packaging products including boxboard, container board, and numerous other specialty packaging products. In an attempt to increase its organic growth, the company decides to introduce new products. It asks the managers and employees to send in ideas for new products. Before launching products based on any of these ideas, what are the stages that the company has to go through?
13. What is qualitative research? Why might it be useful to marketers? What are its major drawbacks?
14: Kansas City-based Hallmark Cards, Inc., is the “personal expressions” industry leader, selling nearly half of all greeting cards purchased in America. Joyce C. Hall founded the company in 1910. Since that time, the company’s creative staff has grown to more than 740 in-house artists, designers, stylists, photographers, writers and editors who design nearly 30,000 products each year. It also has a very large marketing department which relies heavily on in-house marketing research as well as independent marketing research companies to develop and evaluate, not only ideas for its cards, but various segmentation bases.
A. Discuss two possible segmentation variables that Hallmark could use to segment the market. Describe the different segments resulted from the segmentation. One segmentation must be based on a behavioral variable.
B. Identify one segment resulted from using one of the segmentation variables discussed in Q16(A). Explain how you would evaluate this specific segment. Decide whether targeting this segment would be profitable
15: ‘Consumer Reports’ publishes the results of a study on shampoos that provides strong evidence that all shampoos are basically the same as far as the ability of cleaning the hair and scalp is concerned. After reading the report, what actions might you take if you are a high price shampoo marketer?
16. (1) Analyze Takata Corporation’s major actions based on updates from November 2014 to December 2019 provided on the second website. According to your analysis, what were the root causes for this “most complex consumer-safety recall in U.S. history” and “the largest automotive recall in U.S. history”? (2) What marketing lessons have you learned from this complex consumer-safety recall?
17. The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent. News of the fraud became widely known in late 2016 after various regulatory bodies fined the company a combined US$185 million as a result of the illegal activity. The company has faced and faces additional civil and criminal suits reaching billions of dollars. Though Wells Fargo has made attempts at rebuilding its tarnished image, the megabank has been plagued by new accusations and bad press since 2016, making it a challenge to repair their damaged reputation. Develop a brief marketing plan to help Wells Fargo regain consumer trust.
Takata Files for Bankruptcy
Massive Takata Airbag Recall: Everything You Need to Know, Including Full List of Affected
Vehicles (includes updates from November 2014 to December 2019).