Market Sizing Case Interviews free essay sample

DRAFT MARKETING CASE INTERVIEWS 1. Frameworks 2. Market –sizing 3. New Product Launch 4. Competitive Defense 5. Key Measures 6. Advertising 7. Interview Questions CaseQuestions. com CQInteractive. com Frameworks Case questions have been popping up in marketing interviews for years. While there are many similarities between a consulting case interview and a case given in a marketing interview there are differences as well. I always tell the consulting students to stay away from â€Å"cookie-cutter† frameworks like the 5Ps and 5Cs, but in marketing interviews you are encouraged to employ them. To truly standout from your peers, it is best to incorporate the 5Ps into the overall structure and then to fill in your answer with concepts from the Ivy Case Methodâ„ ¢ found in Case in Point. You’ll find that out of the 12 Ivy Case scenarios you’ll most often use (i) entering a new market, (ii) developing a new product, (iii) pricing, and (iv) growth strategies. In marketing interviews as in consulting interviews the 5Ps are: Price, Product, Promotion, Placement and Packaging. We will write a custom essay sample on Market Sizing: Case Interviews or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The 5Cs, however; differ. In a consulting interview the 5 Cs are Cost, Competition, Channels, Company and Client while in marketing interviews the 5 Cs are Category, Company, Competitor, Consumer and Customer. On the following pages I have laid out some working structures for you to review. Keep in mind that these might vary depending on if the case is about a product or a service and what industry it belongs. MARKET-SIZING QUESTIONS Your answer should be based on logic and assumptions. Structure o Listen to the question, and then determine the type of case; population-based, household, individual or preposterous. Ask clarifying questions, only if you don’t understand the question or terminology. o Lay out your structure first, the steps you’ll need to answer the question, and then go back through it with the numbers. Assumptions o Don’t worry if your assumptions are off, the interviewer is more interested in your thought process than whether your assumptions are correct. If your assumpt ions are way off they will tell you, otherwise they’ll let it go. o Base your assumptions on some sort of logic otherwise the interviewer might press you on how you drew that conclusion. You can group several assumptions into one number (i. e. The 20% takes into account X, Y, and Z. ) Math o Estimate or round numbers off to make it easier for calculation. o Write all numbers down. NEW PRODUCT LAUNCH 1. Customer needs †¢ Do customers want or need this product? †¢ Benefits to the consumer 2. Segmenting the market †¢ Market-sizing – how big is the market? o Market growth rate (past, present and future forecast) †¢ Competition and substitutions o Who are the competitors and what is their market share? How do their products and services differ from ours? o Will they launch a competitive response? †¢ Determine strategic opening o Entering the market ? Start from scratch, buy your way in, or strategic alliance o Barriers to entry ? Government regulations, access to distribution channels, access to capital, access to raw materials 3. Choose target †¢ ID heavy users o Why would they be interested in this product? 4. Positioning †¢ Differentiate – how different is it from the competition? 5. 4Ps †¢ Product – Why is it good, what’s our niche? How is it packaged? †¢ Price – competitive analysis; cost-based pricing; price-based costing (what is the customer willing to pay for it) †¢ Place – distribution channels †¢ Promotion – how best to market 6. Evaluate financials †¢ Do we have the funding we need to launch and support this product? To launch or not to launch – make a decision COMPETITIVE DEFENSE Assess the threatening product †¢ How similar is it to our product? o Does it do a better job meeting the customer’s needs? o What are its strengths and weaknesses? o What kind of market share can it expect? Curiosity – will it last? ? Will it cannibalize our sales or will it steal sales from another competitor instead? What kind of resources does it have behind it? †¢ Parent company – large or small o How committed is it to this division or product? †¢ Introduction strategy o Major marketing campaign o Incentive discounts ? 2 for 1 offer ? Low interest financing Defense strategies Defense strategies will differ depending on product or services offered. Below are a few well-tested ideas that you should think about to determine if they are appropriate for that particular case. pic] 5 Ps †¢ Pricing – can you adjust your price to maintain or even gain market share and profitability †¢ Product – can we upgrade our product or options offered? How long will it take and at what cost? Will it canalize existing products? †¢ Promotion – reinforce brand with advertising, promotions and PR †¢ Place – increase exposure within current distribution channels as well as increase number of channels †¢ Packaging – can you improve or update your packaging? KEY MEASURES In these cases the main key measures are market-share, sales and profits. If you are given a case with an existing product, identify where that product is in its life cycle emerging, growth, maturing or declining. Things to consider: †¢ If market-share is constant but sales are flat, that could indicate industry sales are flat and your competitors are experiencing the same problem. †¢ If market share declines, and it is determined that market share is more important than profits then consider lowering price; if not, then upgrade the product, increase promotions and expand distribution channels. If your case includes a decline-in-sales problem, analyze these three things: o Overall declining market demand (soda sales have dropped as bottled water sales climb) o The current marketplace might be mature or your product might be obsolete (CDs gives way to digital) o Loss of market-share due to substitutions (Netflix DVD rentals gives way to Internet downloads, Pay-per-View, DVD purchases, and competitors entering their market such as Blockbuster. †¢ If sales and market-share are increasing, but profits are declining, then you need to investigate whether prices are dropping and/or costs are climbing. However, if costs aren’t the issue, then investigate product mix, and check to see if the margins have changed. †¢ If profits are declining because of a drop in revenues, concentrate on marketing and distribution issues †¢ If profits are declining because of rising expenses, concentrate on operational and financial issues †¢ If profits are declining, yet revenues went up, review: o changes in costs; o any additional expenses; o changes in prices; o the product mix; or o changes in customer needs. If a product is in its emerging growth stage, concentrate on RD, competition, and pricing †¢ If a product is in its growth stage, emphasize marketing and competition †¢ If a product is in its mature stage, focus on manufacturing, costs and competition †¢ If a product is in its declining stage, determine the strength of the brand then define niche market(s), analyze the competition’s play, grow category, maintain at more profitable levels or think exit strategy o Can this product be reinvented or changed to meet new consumer needs? Can this product be produced at a lower cost? o Can this product have new uses? o Can new distribution channels be created? Advertising Determine media strategy. Combination of any of the following: Print Newspapers, magazines, bill boards, flyers, direct mail and catalogs The purpose of the print advertisement is to build brand, create an image, generate exposure and drive traffic your website and stores. Web Website, adwords, sponsored links, links, product placement in virtual worlds, social networking campaigns and You Tube. The purpose of web ads is to build brand, create an image, generate exposure, provide information and make sales. TV Film Cable, network, iTV. Ads and product placement The purpose of TV ads is to build brand, create an image, generate exposure and drive traffic your website and stores. Promotions and sponsorships Promotions generate sales by giving the consumer a chance to use the product either at discount or through use of a small test sample. Sponsorships are used to enhance name recognition and to build good will. Common marketing interview questions 1. How would you develop and introduce a new product? 2. There are two ideas in the company pipeline, which one would you choose? 3. Critique this ad. 4. Define a successful ad. 5. Your competition is attacking your product, how would you respond? 6. Give me an example of good marketing. Q1: How many Sky Mall magazines are printed every year for domestic airlines? As marketing manager for Sky Mall how would you increase revenues? †¢ Distribute in airports o More down time Access to phone and internet o Impulse buy Q2 You have just taken over as the brand manager for a product whose sales have been flat for the last three years. However, despite flat sales your product went from having 25% of the market to recently having 40% of the market. What’s going on and what would you do about it? ?[P=(R-C)*V]? If sales are flat, but your market share is growing then it probably means that the product’s category is shrinking. Why is it sh rinking? †¢ Is your product obsolete? Is there a new type of product or a substitution that is stealing customers? †¢ Have any competitors left the market? †¢ Have there been any mergers? Solutions: Are there any new ways to use the product? Offer new products in another category that leverages your brand. Can you change or alter the product to bring it up to date? Can you encourage existing customers to use more of your product? Can you make your product â€Å"hip† again? Can you go after new markets? †¢ Demographic †¢ Geographic [pic]