Marketing case studies Flashcards
(35 cards)
Case study: MISLEADING AND DECEPTIVE ADVERTISING (Consumer Law & Specific Requirements)
Nurofen started offering a range of ‘targeted’ painkillers such as for back pain, period pain and migraines, sold at twice the price of regular Nurofen
These ‘targeted’ painkillers actually had the same basic ingredients as regular Nurofen
In 2016, the ACCC fined Nurofen $1.7m for misleading customers, and required Nurofen to publish newspaper notices explaining the decision
Case study: PRICE DISCRIMINATION (Consumer Law & Specific Requirements)
Price Discrimination refers to when a business changes prices for the same product. (Illegal unless anti competitive)
In 2017, Uber also began increasing prices for trips to wealthier suburbs due to customers’ increased ability to pay. This is price discrimination, but in this case it is legal because it wasn’t deemed to be anti-competitive.
Case study: IMPLIED CONDITIONS (Consumer Law & Specific Requirements)
In 2017, activewear retailer Lululemon falsely stated that consumers were not entitled to a ‘return or refund under any circumstances’, even if the products were faulty,
The ACCC fined Lululemon over $32,000 for falsely telling customers they were not entitled to a refund or replacement products.
Lululemon said it had resolved the issue and made sure its commitment to consumer rights is clear and in accordance with the law.
Lululemon said if a product did not perform for a customer “we’ll take it back”.
CASE STUDY: WARRANTIES
(Consumer Law & Specific Requirements)
Some iPhones froze after customers downloaded a software update, but Apple denied customers replacements if any part of their device had been previously repaired by a third party - even if the repair was unrelated (such as a screen replacement)
The ACCC fined Apple $9 million
In 2022, Apple responded to criticism by beginning to sell spare parts for third-party repairs
Case study: GOOD TASTE
(Ethics)
H&M uses social media data to track social media trends and the opinions of key influencers.
By using influencers, making engaging posts and quickly replying to comments, H&M has become the most followed fast-fashion brand on social media, with 9 million engagements per month.
In 2018, H&M advertised on its website a hoodie worn by a black child model that read “Coolest Monkey in the Jungle”. The real-time market research quickly detected backlash and H&M apologised on its social media platforms
Case study: TRUTH AND ACCURACY
(Ethics)
McDonalds partnered with the Heart Foundation to get the ‘healthy tick of approval’ for some of its meals with a lower fat content (despite still being considered unhealthy by other metrics and nutritionists)
In response to negative publicity about the decision, McDonalds removed the tick from its products and the Heart Foundation abolished its healthy tick rating system entirely
Case study: PRODUCTS THAT DAMAGE HEALTH
(Ethics)
The Australian Government passed cigarette plain packaging laws in 2011
Plain packaging and graphic health warnings reduce the appeal of cigarette branding and helps people kick the habit
The Government estimates there were 103,000 fewer smokers in the first three years
Case study: ENGAGING IN FAIR COMPETITION
(Ethics)
As well as having their own warehouses, Amazon also allows third party sellers on its website. Amazon uses data to identify the third party sellers’ most popular products, and then produce private label versions themselves.
Despite this abuse of market power, businesses still sell on Amazon because of its market share.
Case study: GOV INFLUENCES
(Factors affecting consumer choice)
The Australian Government passed cigarette plain packaging laws in 2011
Plain packaging and graphic health warnings reduce the appeal of cigarette branding and helps people kick the habit
The Government estimates there were 103,000 fewer smokers in the first three years
Case study: ECONOMIC INFLUENCES
(Factors affecting consumer choice)
Hotel occupancies fell by 65% during the covid pandemic, due to border closures and low consumer confidence
Quest Apartments responded by cutting its prices. It also shifted the focus of its marketing campaigns from business and international travellers to promoting local tourism and ‘staycations’
Syllabus: STRATEGIC ROLE OF MARKETING
Business objective to increase sales revenue in order to increase profits
Syllabus: 3 TYPES OF MARKETING Approaches
Production: Making as much of product as possible
Selling: Focus on persuading customers
Marketing: Focusing on making goods that customers want and catering to them
Syllabus: 6 types of markets
- Resource market
- Industrial market
- intermediate market
- Consumer market
- Mass market
- Niche market
Syllabus: 4 psychological factors
(Factors affecting consumer choice)
- Motives
- Self-image
- Perception (How an individual views a product)
- Learning
Syllabus: 4 sociocultural factors
2 economic factors
(Factors affecting consumer choice)
- Peer groups 1. Booms
- Culture 2. Busts
- Family roles
- Social class
Syllabus: 3 government factors
(Factors affecting consumer choice)
- Laws and regulations
- Subsidies
- Regulations on advertising
Syllabus: Explain the consumer laws and ACCC
(Consumer laws and ethical influences)
- Introduced in 2011 to protect consumers and increase competition
- Set by the competition and consumer Act 2010
- Breaches to the laws can result in
- Fines up to $50 million by ACCC
- Public warnings by ACCC
- Being sued by customers
Case study: SWOT
(Situational analysis)
Strengths: H&M have over 5000 stores in all 6 continents allowing them to target all individuals on a global scale. This reduces risks that unfavourable economic conditions in certain countries will not severely impact the clothing brand and ensure sustainability and stability
Weaknesses: Over dependence on outsourcing as H&M does not produce in house, meaning that H&M is at the mercy of their suppliers
Opportunity: Australia is a wealthy market with similar fashion tastes to Europe and few brands that cater for all ages. As such, H&M entered the Australian market in 2014
Threat: Covid-19 reduced sales in stores. H&M launched online store in 2020
Case study: MARKET RESEARCH
(Market research)
Market research is the collection and analysis of data to please meet consumer preferences
H&M use social media data to track social media trends and the opinions of key influencers with 38 million followers on Instagram
They use analytics software such as Google Analytics and Curalate to track trends in likes and shares for different product designs. This helps to inform which product lines are extended and deleted.
It also helps respond to negative word of mouth. In 2018, H&M advertised on its website a hoodie worn by an African child model that read “Coolest Monkey in the Jungle”. The real-time market research quickly detected backlash and H&M apologised on its social media platforms.
Case study: TARGET MARKET
(Identifying target market)
H&M’s target market are people aged between 15-35
Based on this target market, H&M’s marketing mix involves a lot of e-marketing, becoming the most followed fast-fashion brand on social media, with 38 million followers on Instagram
It uses social media influencers and celebrity opinion leaders who are well-known to this market
It has also improved the labour standards of its suppliers and
its use of recycled materials, as CSR is a particular concern to younger consumers
Case study: MARKETING STRATEGIES
(Developing Marketing strategies)
H&M use social media posts and influencers, in addition to traditional billboards and celebrity opinion leaders
They also conducted public relations by hosting public events for World Recycling Week and by using its supply chain to provide protective equipment such as face masks during the Covid-19 pandemic
Case study: Market Segmentation
Unilever own multiple deodorant brands - Lynx, Dove and Rexona, each marketed at different market segments
Unilever has used sexualised advertisements to position Lynx as an edgy brand for young men. At the same time, Dove’s ‘real beauty’ campaign criticised sexualisation of women, and positioned itself as an ethical brand
By segmenting the market and positioning separate brands for different demographics, Unilever has captured 58% of the Australian deodorant market.
Case study: Product
Coca-Cola ran the ‘Share a Coke’ campaign with 150 of the most popular names on the packaging of their drinks. The sociocultural appeal of the campaign increased sales amongst young adults by 7%
In 2022, Coke announced that 25% of its sales will be from refill stations, and all bottles will be made from recycled products by 2030
Due to its marketing, Coke’s recognisable and trusted brand is worth $120 billion
Case study: Market-based pricing
The Uber app uses market-based pricing, changing prices based on the level of supply (how many drivers are on the road) and demand (how many customers are trying to book a ride).
This ‘surge pricing’ prevents a shortage of cars on the road, and maximises profit.
This was utilised during the heavy flooding within 2022 where uber capitalised on low supply of drivers and high demand by raising prices as much as 300% to maximise profits
