MARKETING CASE STUDY

Case study 1: AGRO SEEDS

Aim: increase the company’s sales and profits in the highly competitive Ontario seed corn
market.
Evaluation of the strategy of increasing company’s share of the market for silage corn seed.

Ontario context
Difference in the number of acres planted to grain and silage corn in Ontario:
- Grain corn: 2,100,000 acres harvested
- Silage: 500,000 acres harvested

Annual increase over the past years of acreage:

- Grain corn: 2% (more investments because of the larger size of the market)
- Silage: -1%

Agro Seeds: 175 dealers in Ontario

Average price of seed corn is $120 (ranges from $80 per unit to $180 per unit), in general the
silage corn seed are sold in the low part of the average, instead the grain corn are sold
within the entire range.

Competitive scenario in Ontario seed corn industry

- 7 companies
- Total market: 100 millions per year
- Leading company (Pioneer) estimated to have over 50%
- NK and Dekalb have approximately 15%
- Agro Seeds’ is thought to be about 7%

Pioneer will continue to maintain the highest a dominant position in the market and the
small ones will change only as a result of mergers and acquisition

Threats and opportunities

Threats of grain:
- More expensive
- Agro seeds dealers and farmers are close together

Opportunities of grain:
- Larger size market
- Relatively simpler performances to access
Threats for silage
- Lower prices
- Require additional resources for promotion
- Does not enter in commercial markets

Opportunities for silage

- No leader in the market
- Better performances of agro seed’s varieties than competitors
- Back door approach
- Variety selected for grain corn will be also good for silage corn

Segmentation
In order to introduce the silage strategy we decided to do a segmentation of the market in 4
main categories of farmers:
1. Sophisticated
2. Transition +
Segment 1 and 2 are homogenous, measurable, accessible, differentiable, substantial (10%
and 45% market size), compatible, long-lasting, actionable.

3. Traditional
4. Transition –

Considering that:
- Agro Seed has an advantage in terms of new variety (high TDN which could be
confirmed by Ontario Corn Committee)
- The first two segments are seeking for new technologies, highly productive
varieties based on scientific evidence-based source of information and are
experts with the technological know-how
WE TARGETED SEGMENT 1 AND 2 FOR SILAGE STRATEGY

Possible marketing strategies:

- On-farm demonstration activities
- Advocate the inclusion of silage performance measure and offer support
- Targeted social media marketing
- Incentives and capacity-building for seed and farmer dealers

Three year silage strategy trend (assumptions)

- Increase in share of 1% per year in the two segments
- Selling price at the low end of the price range (80$)
- Acreage of silage corn is decreasing at 1% rate annually
REACHING THE BREAK-EVEN POINT IN THE THIRD YEAR

Comparison between silage strategy to status quo

To reach the same amount of profits of status quo with the silage strategy we need to
increase our market shares by 26%.

Final verdict: MAINTAIN STATUS QUO

- The share necessary to reach the status quo is too high
- Current market power is too low (Agro Seeds doesn’t have the resources to face
the competition with the big company)
- OPPORTUNITY COST is too high. (Soregaroli consideration)
Case study 2 - SAXONVILLE

NAME:Saxoville Sausage Company

BUSINESS DESCRIPTION: a 70-year-old, privately held family business headquartered in

Saxonville, Ohio, with 2005 revenues of approximately $1.5 billion.
Products Bratwurst (70% revenues); breakfast sausage, both links and patties (20%); and
an Italian sausage named Vivio (5%). Store-brand products accounted for the additional 5%.

MAIN ISSUE(QUESTION OF THE CASE:

● “the Italian opportunity” for Saxonville: develop a national product under the Vivio
name or as a new brand.
● “what about positioning the Vivio brand? What did the company do to create a
distinctive identity for Vivio that would stand out amid the competition? (there was
also the “naming” problem) ”

Goals for Vivio brand:

● Become the first national Italian sausages brand
● Increase market shares and profits
● Minimize cannibalization

RESEARCH PHASE(evidences)

1. Evaluate Attitude and Usage informations(main evidences)

-“Female heads-of-household” (FHH) are primary purchasers of Italian sausage

and are the main target.
-6/10 are loyal consumers

2. Focus groups(main evidences)

Vivio Italian sausages are:
-Great male-maker
-Adapt to the entire family
-Magnet to bring everyone to the table
-Considered high quality product

Based on this evidences and from other investigation the final choiche of the brand
positioning was between 2 main paths:

● Family connection: “Family and friends around the table with good food, sharing
and enjoying themselves and each other, is what good living is all about. Everybody
loves Italian sausage and the meal it makes – and she is the magnet that pulls
everyone in”
 ○ For FHH, women who love to donate meaningful moments to their families
with a quick, tasty and traditional meal. Delicious Italian Sausage gives the
best memories around the table

● Clever cooking: “Using fresh, high-quality ingredients and making a recipe her own
way, she puts a little of herself into the meal. Italian sausage is so versatile it can be
used in a number of different ways and it always adds a little zest to her dishes.”

○ “For FHH,A delicious way to express your creativity with original meals
everyone is sure to love.”

HINTS OF THE PROFESSOR:

-We have choosen “family connection”, but the real “Sanxonville company” has choosen
“Clever cooking”
-Keep separate the brand from the Saxonville company
Case study 3 - EYCKLINE FARMS

Name: Eyckline farms

Business description: A farmer who breeds chickens is evaluating whether to change his
feed supplier. He had the same supply for several years. He is a traditional farmer, not so
willing to change. The reasons why he decides to change supplier are:
- increase in prices of current supplier
- decrease in yields (lower conversion rate)
- inadequacy of the salesman approach

3 different sellers approach him, with different approaches:

- Jim Sellers is his actual supplier’s salesman. Wilhelm has been his customer for
years. Jim never tries to force Wilhelm decisions, but sometime she takes loyalty for
granted
- Chuck Hustead is a family friend. His company has very low prices, however he
criticizes Wilhelm actions and focus too much on his company
- Dave Crawford has the ideal approach for a traditional farmer: he knows the farmer's
family, shows genuine interest and is also suggested by Wilhelm neighbors

Main issue / question of the case: What is Wilhem's final decision? Does he change
suppliers or not?
Answer: We assume he changed supplier. The trigger point relies on the fact that Jim Sellers
did not stop by Wilhelm's house to say hi, which led the farmer to think Jim has no interest
for him. Key aspects for this decision are: the supplier’s proximity, product freshness,
recommendations from relatives and friends, and a colloquial approach from the salesman.

Prices must be competitive, or a traditional farmer will never move to your company, and you
must wait for the proper timing for the approach

Hints of the professor for the case: salesmen play a very important role, however it’s
crucial to make sure not to depend entirely on them. In fact, if we only depend on salesmen,
once they’re leaving the company we will lose our competitive advantage in approaching
traditional farmers.
Case study 4 - MOUNTAIN MAN

Name: Mountain Man

Business description: Mountain Man Brewing Company (MMBC) is a family-owned

business since 1925, which produces only one beer The Mountain Man Lager, a high quality
beer also known as “West Virginia’s Beer”, the main consumers are the blue-collar men.
High brand awareness and loyalty.

Main issue / question of the case: the company is facing a decline in sales ( -2% in
annual revenues.
-two visions for the future:

- OSCAR’S VISION, owner of the company (conservative approach) : he

wants to keep producing only the Mountain Man Lager beer because he
fears to damage brand image and affect customers’ loyalty with a
diversification strategy
- CHRIS’ VISION, Oscar’s son (progressive approach): wants to introduce
Mountain Man Light beer because the light beer market grows by 4%, out of
which Mountain Man could capture 0,25% of the market share annually

-Problems related to the launch of the light version: cannibalization, brand equity dilution,
customer alienation, bigger competitors to face, no space in big retailers

Answer:
Group proposals:
1. maintain status quo and face the decline
2. introduce light beer version
3. brand revitalization (new marketing strategy to promote better the lager version)

What did the real company do?:

The company introduced a new lager beer to make the loyal consumer (blue collar) feel still
important for the company (strong flavor and high alcohol content). Later, the company
launched the light version of the beer but sold it in different areas than the previous one
(cities instead of rural states) in order to reach a new segment of consumers. Launching the
light version later, should avoid customer alienation.

Hints of the professor for the case:

Choosing a different area of selling the light version should help reach younger consumers
(specially in the cities). This way the company can reach a new target and increase sales.
Maybe blue collars don’t even notice the introduction of the new product (careful: is
dangerous not having a clear communication, if blue collars find out they might feel
betrayed)
Case Study 5 - CANDY CRUSH

Business description: As one of the big 6 candy producers in the world, strict government
regulations are affecting your brand as governments seek to increase taxes on products
depending on their sugar content as they believed this to be the underlying cause for obesity
due to unhealthy eating habits. On the other hand, your company with years of acquired
reputation, branding, and product diversification argues that a lifestyle change is the way to
go to address growing health concerns.

Main issue / question of the case: After an analysis of the industry and consumer
segments, what approach can your company take to address these unhealthy eating habits
in regards to candy and how will you align your approach to business, health and pleasure.
Would you:
1. Reformulate existing chocolate bars by reducing the sugar content to below nutrition
thresholds, without compromising actual or perceived taste
a. Use an existing product, new product, or brand extension
b. How should this be communicated?
2. Reduce product or portion sizes while minimizing negative reactions and how?
a. Reduce each unit or size along with prices?
b. How should this be communicated?
3. Nudge consumers towards healthier consumption without sounding patronizing and
how? Are there other benefits than health that could be used?

Answer: Reformulate existing chocolate bars using a brand extension

Taking this approach would have given a competitive edge over other players in the industry
for the emerging market trend.

Hints of the professor for the case: The solution provided by the group did not address
the actual problem of global (not a niche) unhealthy eating habits as our solution targeted a
population segment that already cared about their diet. The appropriate approach was to
reduce portion size in terms of dimensions using consumer psychology. We can also
change communication about portion sizes e.g. advertising that the smaller portion sizes are
the required size for healthy consumption. Consumers can also be nudged using products
with colored layers in products e.g. a can of pringles with different colors. Another way to
nudge is through resealable packaging.
Case study 6 - TRUE EARTH
Business description: American firm specialized in the production of fresh pasta made by
whole grain. The high quality and healthiness of the products satisfied the new trend of
consumers to eat semi prepared products made with healthy and good quality products. This
group of products made Cucina Fresca, the product line of True Earth specialized in pasta,
successful and the main firm of the whole grain fresh pasta. LAUNCH OF A NEW
PRODUCT: Whole grain pizza. Why? It would be the first firm in the market, high market
value, 33% whole grain crust, to leverage the brand, fresher than frozen pizza and healthier
than take-out pizza and less investment required with respect to pasta. Inconveniences: it is
made with high quality and healthy products even if the product is considered by consumers
an indulgence product, competition with other pizza brands (no one in the whole grain
pizza).
Main issue / question of the case: Launch or not the whole grain pizza in the market, taking
in consideration that Rigazzi, main competitor, is also developing a similar product?

Answer: We decided not to launch the product because:

- Launching the product only to be the first mover: too risky to do it because the
benefits of this action could be less than the damage to the company’s image, which
could also negatively affect the pasta market. We could be Rigazzi the first move so
we could wait for the consumer reaction, second mover advantage.

- The price should be too high for a product which is linked to a low willingness to pay
(average retail price is 12,38 while the willingness to pay, is high in the consumer's
test, and is concentrated between 6-8 and 10-12). The price is too close to the fresh
pizza.
- The concept of healthy food is difficult to associate with pizza / reducing the price the
huge players would become direct competitors.

Hints of the professor for the case:

1. The professor said that our firm should launch the product even if it could fail
because the worst scenario of all would be if we don't launch and the competitor
does and they have success. Their company would be strictly linked to that specific
product and we would be cut off from the market of that product. There is no second
advantage move in this market situation.
Case study 7 - INSTACART
Business description:
- Instacart is an American company founded in 2012 & operates as an online grocery
delivery and pick-up service in Canada and the United States.
- Instacart is not the first company that tried to solve the “last mile delivery
problem” (= the problem of the supply chain of connecting the last transportation
hub to the final customer, it’s the most expensive delivery phase & the most
difficult to make it efficient) “Uber-ization” of business
- first company that entered this business: WebVan
- WebVan worked with big distribution centers (cost 35 million each huge initial
capital investment) To be profitable, WebVan needed to have a high customer
density around its warehouses. This customer density was never reached.
WebVan failed!
- After WebVan fail another company tried to enter the business: Peapod.
o Peapod went online in 1996 & in 2015 was the leader in the online grocery
delivery service.
o Peapod still assembles orders in warehouses and not by picking them from
the supermarket shelves.
- Other companies that entered the business: Fresh Direct, Amazon Fresh,
Safeway & Walmart.
- In 2012: Instacart was founded by an Amazon engineer Apoorva Metha.

Main issue / question of the case:

Grocery shopping has been largely immune from digital disruption. Why did Webvan fail?
what about Peapod? Can Instacart be profitable? What are or could be the sources of
revenues and costs?

Answer:
- Instacart works without warehouses or distribution centers ( no fixed costs), but uses
freelance personal shoppers that go into existing grocery shops with consumers' grocery list,
and they shop from the site chosen by the customer and deliver the order. Most of the orders
placed in Instacart are delivered within an hour
- Delivery costs: First orders were free, 3,99$ for two-hour delivery, 5,99$ for
one-hour delivery; for both minimum order of 35$; Additionally: “Instacart
Express”: 99$ delivery membership per year for two-hours delivery over 35$
- The consumer can choose from a variety of different shops, but Instacart has a
partnership with some grocery shops where consumers can find special offers
and stable prices.
- The idea driving Instacart is to outsource the costs of warehousing and the cost of
transport because the shoppers use their own cars.
- But outsourcing is hardly immune to imitation, so Instacart worked a lot on the
efficiency of the delivery. Delivery relies on software tools and AI: optimization,
predictive analysis and dynamic incentive-setting to match demand and supply in
near real-time.
 - Instacart can get revenues from the fees that the customer pays, a small
percentage of the revenues of partnered grocery shops, revenues from the
advertisement on the Instacart e-commerce and from the selling of generated
data.
- The generated data is the most important source for Instacart, a source of
revenue and are used in order to make the delivery system more efficient.
- The data generated are sold to the food industry in order to develop new products
or to the retail system to later extract the customer habits.

Hints of the professor for the case:

- Selling to our final customer including delivering cost is unprofitable
- Service must be excellent, otherwise customers will be not loyal to my company
- Who are the real customers of instacart? food companies, universities,
government…
- the generated data allow Instacart to reach different economies of scale

Case study 8 - MICHEL ET AUGUSTIN

Name: Michel et Augustin
Business description:
Main issue / question of the case:
Answer:
Hints of the professor for the case:
Michelle et Augustin
Case overview:
- Michel and Augustin founded a company that made & distributed cookies mostly
through sandwich shops in France
- Only focus on the French market (even though high level of competition)
- Now: seeking further investment in order to increase their business à objective
was to reach a consistent product, with a high brand awareness & a big network
of channel partners in order to face the strong competition against the giants of
the industry
- They started producing sables (typical French cookies), with three lines products:
Butter, Poppy seed and vanilla, Chocolate Chip
- Despite a hard beginning, they were selling an average of 500 packs for days and
they also developed a website; results were promising but they were still far from
achieving adequate scale
- Regarding the product: M&A felt they had found the winning formula, keeping
their biscuits in sachets to keep their freshness & distributing three sables in each
sachet
- They thought to produce two different varieties of packages: a large version
(Containing 6 sachets) & the snack version (Containing 2 sachets)
- many doubts Regarding pricing, distribution & advertising, because of a very low
budget (start-up)

Marketing proposal:
à case study asked: to choose the target consumer, make a POPs & PODs analysis &
suggest a marketing mix plan for growing the business

SEGMENTATION à Target Consumers:

● children and young people (<15-24 years) consumption of 18g (2 biscuits) per day, of
which 61% is consumed as a snack and 21% for breakfast
● Adults group (24-49 years) the daily consumption of biscuits is 9g per day of which
only 32% is consumed as a snack

- è We decided that our consumer target is the range from 18 to 35 years because
this target seems to be the greatest cookie lover in France, while on the
psychographic point of view we concentrated on people’s lifestyle, referring to
outgoing and unconventional people. main characteristics of our product:
medium-high quality. Cardboard boxes containing 6 sachets by 3 biscuits for total
120 g. introduce snack sachet with three biscuits each: 1 sachet with 3 biscuits of
the same flavour and 1 sachet with 3 different flavours

POPs

- cookie (sablè)

- traditional local ingredients

- snack

PODs

- above-average quality

- unconventional distribution channels

- no mass production

- passion driven

- unique flavour

Feedback from Soregaroli:

“The positioning in your solution comes after the product, the packaging and the pricing.
Positioning doesn’t come after, it comes before the marketing mix. You talked about the
PRODUCT, but what about you? Who are YOU? It is fundamental. You said that you are
“delicious” and “authentic”. “Delicious” refers to the cookie, “Authentic” refers to the process.
Your answer is product centered. You are not cookie makers, that’s not your positioning. You
built the map thinking of cookies, you had to build the map in respect to Michel et Augustin.
You are PASSIONATE. Talking about Michel et Augustin as a brand, they are irreverent.
Irreverence, fun, enjoyment, these are the attributes connected to the brand. You can
create a community of people that are irreverent, that share a way of living.
Authenticity linked to the lifestyle, not to the process, linked to the people to the way of living.
The marketing mix can be built only after having clearly established this.” è POP and POD
suggested by Soregaroli: Authenticity and irreverence.

Pricing

- Large version: 2.75€

- Snack version: 0.75€

à Our prices are above average prices thanks to the quality and authenticity of our brand. At
the same time, we are not a luxury brand neither in terms of the product nor terms of price.

Promotion

● Pop-up or temporary (daily) shop

● Scent-marketing
● Events
● Free merchandising and free tasting
● Postcard in the pack
● Adv on magazines
● Flyer distribution
● Alternative packaging
● Selling map
● Consumers engagement
● Discount
● Story telling
● News letter

Unconventional marketing channel due to a low availability for advertising and marketing.

Distribution

- Café shops

- Library
- University bar

- Alternative clothes shops

- Pop up stores

Management consideration:

1. How do you think to approach big retailers in order to sell your product like a
“premium” product?
2. How do you think to create a stable relationship with your customers? And which
point are you stressing to reach these goals?
3. Have you considered using your newsletter in order to make surveys among
customers?
4. Since there is a growing trend for organic and healthy food, why didn’t you choose to
follow this trend rather than supply a conventional product?

Case solution:

The relevant point of this case was to be coherent with the brand positioning chosen.
The French biscuit market is mature and very competitive, so we have to choose a
positioning to differentiate our brand: authenticity, high quality and irreverence permits us to
differentiate ourselves from the main competitors.

From this all the choices must be coherent with the positioning:

Target consumer: youngster (18-30) because they consume more than older people but
more importantly, they are closer to the values of our founder and for this reason a
community can be created.

Soregaroli’s comments:

- Do we stay local (in France) like many other companies, or do we go bigger, in

order to lower production costs and become more profitable?
- Will supermarkets accept me as a start-up company / can company convince the
retailers?
- Do you have a reason to stay in the shelf? Because big players are already
there… but you don’t want to stay in a niche, you have ambition…
- Fundamental question: Who is the company / Who are you? Before talking about
the product, its more important to tell, who are we as a company à we need to
decide who we are…
o You are not cookie makers, but rather selling a lifestyle (fun)
o First Positioning (crucial): Who the company wants to be? Goal, to
create a community (Mindset / Working the right way: first: who you are,
 what is the positioning; role of me as a brand, then secondly the product
arrives…)
§ Company is passionate à We need to stress, what the big
companies can’t offer
§ Attributes of the company: Fun, irreverent (= you don’t follow the
protocol, authenticity à lifestyle, way of life à Build the company
around those attributes à COHERENCE)
o Second: Strategy (e.g. unconventional packaging)
§ Moving out of technology process & getting authenticity (our values)
of the lifestyle à to frame our advertising à then you can think
about creating a community (e.g. unconventional advertising)
§ Learning and experience the process

à Issues of Brand religion, Brand connection

- What can a multinational company not be: Can a multinational company can be
perceived as authentic (link to a lifestyle, everyday life)?
o This company here could better claim authenticity
o Direct link of managers of the company and link to the customers -> placing
your image on the package
- Same example: Ben and Jerrys Ice cream (old marketing video): “We make it all
better”
- Some real numbers of Michel et Augustin:
o Revenues increase to 55 million in 2018; but difficult to grow outside of
France; not so successful
o Now: 2019 Danone bought 95% of the shares
o Problem: scaling up the business, because the brand is so linked to the
business

à Real question: how do you compete with a giant? It’s possible, to find a niche and
become a national brand!