MKTG 612 Midterm Examination

MKTG 612 Midterm Examination | Assignment Help | Kogod School Of Business American University 

MKTG 612-OL (F2018)

MIDTERM EXAMINATION

1.      [10 pts] Oscar Mayer, owned by Kraft Foods and located in Northfield, Illinois, is the maker of meat and cold cut products. Oscar Mayer is known for its hot dogs, bologna, bacon, ham and Lunchables products. One of their newer products to their portfolio is called, P3: Portable Protein Pack and is designed to encourage people to get their daily intake of protein from original sources such as meats, cheeses and nuts instead of powders and bars. Each packet includes one or two types of cheeses, one type of nuts such as cashews or peanuts and one type of meat like turkey breast or smoked ham.

Assume that you are the brand manager for P3 and you need to identify two consumer markets that you plan to target with this product. For each market, define each target market by using at least three segmentation characteristics (demographic, etc.) and briefly justify (in 1 or 2 sentences) your rationale for targeting each market.

2.      [6 pts] Effective segmentation requires four things. List these four requirements.

3.  Graze was started by seven friends sick of chips and candy, who wanted a better way to snack. The friends quit their jobs and camped out in a friend’s spare room for months and after a lot of hard work, graze.com was born - snacks that show off the tasty side of health and are delivered directly to you.

The sole mission of the company is to discover exciting flavors and create delicious new combinations that will delight your taste buds. The company prides themselves on working with small suppliers who they feel give us unrivalled ingredients and products. They don’t compromise on quality and only work with suppliers who love food as much as they do.

As a new company, Graze is faced with the following questions that they want to address by collecting market research. For each scenario, indicate the most appropriate research approach: exploratory, descriptive, or causal. Then, state the best collection method that the researchers should use to obtain the needed information (e.g. an interview, an experiment, etc.). Note: each answer only requires a few words.

a)      [5 pts]Through a new advertising campaign, Graze company is offering a free box of Graze snacks to new customers.  Thus, the company is trying to test whether this free offer will increase their customer base compared to the membership discount they were previously offering.

b)      [5 pts]The Graze team is looking to increase their advertising spend in the Washington, D.C. market; however, they first want to know the median household income for the families that market along with some information about the types of food they purchase and the types of grocery stores where they primarily shop.

c)      [5 pts] Although they have not heard this feedback from their customers, the Graze team is considering changing their packaging because they are concerned that their customers may only eat one snack at a time and save the others for another day and the packaging may not be great for storage. 

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4.      [8 pts] The Graze company has decided to develop an internal database to track their customers and sales.  Briefly discuss the advantages and disadvantages of internal databases.

5.

    [10 pts] Using the customer information in their internal databased, Graze also decides to survey their customers about their use of the product. Considering the survey below, list all the mistakes that you can identify.

 6.

     [10pts] Trunk Club, a new online clothes-shopping experience, delivers you the best-handpicked clothes that fit your size, style and measurements directly to your doorstep. Simply try on the clothes when they arrive, pay for what you keep and send the rest back. It saves you time and frustration it usually takes to pick out and try on clothes in-store and provides you with a stylist that handpicks clothes to meet your preferences. Simply complete a style survey to be matched with a stylist who will find the right clothes for you. After your stylist handpicks a selection of clothing you will be able to see a preview online. After you review your items, your trunk will be shipped to your door for you to try on. Once they arrive you have ten days to keep what you like and send the rest back. Shipping is free both ways – you only pay for what you keep. There is no subscription fee and no minimum purchase. While you only pay for the clothes you keep, their clothing is priced similar to high-end brands in department stores like Nordstrom. For example: Jeans are $170-$250 per pair, casual shirts are $100-$200 each, and sweaters are $100-$300 each. This makes it an excellent option for young professionals who are short on time and always on the go.

7.[15 pts] Marketers often analyze how consumers perceive their products by using a multi-attribute model which considers a set of product attributes along with the importance weights of each of those attributes.  Similarly, when consumers are faced with a decision, they, too, consider the product attributes and their importance weights.  However, depending on their level of involvement in the decision, consumers have a variety of decision strategies at their disposal to assist them in making the decision. Using the information below, complete the chart by defining each type of decision strategy and determining the frozen dessert that would be selected using that method. 

a)      [3 pts] What is FitWatch’s (the manufacturer) selling price?

b)      [3 pts] What is FitWatch’s total variable cost?

c)      [4 pts] What is FitWatch’s total fixed cost?

d)      [2 pts] What is the contribution per unit for the FitWatch?

e)      [3 pts]  What is the break-even volume in units?

f)       [2 pts]What is the break-even volume in dollars?

g)      [2 pts] What market share does the FitWatch need to break-even?

h)      [2 pts]What is the current total contribution?

i)        [2 pts] What is the current before-tax profit of the FitWatch brand?

j)        [3 pts] What market share must the FitWatch brand obtain to contribute a before-tax profit of $1 million?