EXECUTIVE ADVANCED DIPLOMA IN BUSINESS MANAGEMENT INDIVIDUAL ASSIGNMENT PRINCIPLES OF MARKETING CASE STUDY 1 & 2 ( 40 Marks)

CASE STUDY 1 JAGUAR TARGETS YOUNGER BUYERS Style is the most important consideration among people who buy Jaguars, according to the Chairman and chief executive of the British firm, Nick Steele. He talks enthusiastically about Jaguars traffic-stopping ability and need to look different form the rest. During his visit to Sydney early of this year, the personable Scheele was upfront about Jaguars troubled recent history, particularly its wayward reliability. We put off a huge number of people our quality turned people off. Driving in downtown Hong Kong, Singapore, Kuala Lumpur or even in Sydney, when their air-conditioning stops, people get annoyed. Rather than bring out new models, we spent four years fixing the fundamental process which allowed the problems to happen. Scheele believes the sales will flow once luxury shoppers are relaxed about jaguars quality and reliability. Then comes he other vital platform in Jaguars renaissance profitability. The target for Jaguar is to return to the glory days of 50 000 annual sales ( about 31 000 Jaguars will be sold this year). Under Scheele, Jaguar has taken steps to attract a younger buyer. Australia played a part here, pioneering the XJ Sport concept few years ago. So successful was this, that the experiment was repeated in Britain. There was significant reduction in age profile. The average age of the Sport buyer was seven years ago and we achieved an exceptionally high 66 per cent of conquest sales, mainly form BMW and Mercedez. Packaging isnt that important to our customers. What we aim for is unique, exterior styling, and we are prepared to make sacrifices in areas like rear head room. Remember our car is shorter than its competition. We took the judgement that if were to lose the Jaguar style, were no longer distinctive. And on the restricted cockpit area, Scheele said the objective was to design an involving package, having the driver as part of the whole vehicle. Thats a cosy front compartment, he added. Others might described it as confining. With the recently-introduced supercharged saloon, Jaguar expects to pull the average age down even further than the 52-53 in Australia and 55 in Britain.

Jaguar made its mark on the basis of giving good performance, superb roadholding and great value for money, money again, and we have to get the message across. And we will get those disaffected customers back- our feedback tells us they are fed up with bland cars. And the Jaguar product beyond 2000s ? Jaguars will be more fuel-efficient but with new wngines. It is difficult to see the V12 going on that long, meeting new emissions regulations.

said Scheele. I think we lost sight of the value-for-money component. Now we are offering excellent value-for-

But there will still be a demand for luxury cars. People who drive considerable distances will still want to arrive relaxed, enjoying total comfort. The Jaguar of the future will not be full of gadjets ; it will offer superb performance and distinction. Source : Sydney Morning Herald, 3 January 2006. QUESTIONS 1 (a) Outline the objectives that Jaguar is hoping to achieve. What evidence is there that Jaguar has effectively planned to reach these objectives. 1 (b) Examine the target market that Jaguar has chosen. Suggest two reasons for this choice of market. 1 (c) Using the information above and your knowledge of marketing, develop a marketing mix/strategies which would assist Jaguar to achieve its objectives. CASE STUDY 2 PROCTER & GAMBLE SLIPS OFF THE PACE.
Twenty years after Procter & Gamble established its first serious presence in Australia, the United package-goods giant is in trouble. Procter Australia has posted estimated losses of $50 million since 2004 05. Its move into a key product category has produced disappointing results. Plans to build a papergoods factory were abandoned. Retailers are critical of some of the marketing strategies and new products Procter has launched over the past three years. Since early 2000, Procter has repeatedly told retailers that its sales, and the retail trades sales, will be driven by the launch of premium-priced products that bring something new to their category and generate fat profit margins for retailers. Head n Shoulders, a hybrid shampoo conditioner and Pampers lived up to that promise. The rate of new product launches by Procter Australia has not been as aggressive as its competitors. A lack of new product since year 2000 is not Procters only problem. The market share of some of its big brand are declining. According to the figures from the industry magazine, Perts share of the shampoo market fell rom 15.2 % in 2003 to 10.7 % last year. Gilette & Mach 3 was a hit in the razor and cream category grabbing 7 % of sales but Procters total share of shampoo and conditioner sales is static. Vicks, Oral B and Oil of Ulan lost a slight market share despite heavy advertising support last year. Source : Business Review Weekly, January 2006 QUESTIONS

2 (a) Analyse the critical marketing issues confronting Procter Austalia. 2 (b) What marketing strategies would you suggest to Procter and Gamble Chief Executive to improve the companys performance. ?