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.

18

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