...Early 2013 Retail Sales Observations The 4 Consumer Headwinds of Jan / Feb. Will Sequester Fester Through 2013? Fiscal Cliff Drag. Marketing Compensation? Updated 3.11.13 The 4 Consumer Headwinds of Q 2013 1. Social Security tax hike. 2. Increased healthcare costs. 3. Big increases in gas prices. 4. Tax refunds delayed. 2% Social Security Tax Hike = Smaller Paycheck With new Federal tax structure, how much less is in someone's pocket? Annual Salary # of Paychecks Old Social Security Tax New Social Security Tax Difference Per Paycheck Annual Difference 24 $25,000 $35,000 $45,000 $55,000 $65,000 $75,000 $1,042 $1,458 $1,875 $2,292 $2,708 $3,125 4.2% $43.75 $61.25 $78.75 $96.25 $113.75 $131.25 6.2% $64.58 $90.42 $116.25 $142.08 $167.92 $193.75 -$20.83 -$29.17 -$37.50 -$45.83 -$54.17 -$62.50 -$500 -$700 -$900 -$1,100 -$1,300 -$1,500 Source: Monthly Consumer Survey, Na6onal Retail Federa6on, February 13, 2013 Increased Healthcare Costs = Smaller Paycheck Total Plan Premium Costs 2013 (Projected) 2012 2011 2010 2009 2008 2007 Percentage Increase 6.3% 4.9% 8.5% 6.2% 5.0% 5.3% 5.3% Average Cost Per Employee $11,188 $10,522 $10,034 $92,456 $8,703 $8,290 $7,874 Average Employee Premium Cost $2,385 $2,204 $2,090 $1,927 $1,797 $1,691 $1,567 Average Employee Out-ofPocket Cost $2,429 $2,200 $2,072 $1,761 $1,580 $1,508 $1,364 ...
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...Running head: PROBLEM ANALYSIS: CLASSIC AIRLINES Problem Analysis: Classic Airlines Judith Judson University of Phoenix Problem Analysis: Classic Airlines To launch a successful marketing campaign, a company must evaluate all environmental factors must formulate proper implementation procedures. Much of the focus must be in planning to prepare the company for unexpected outcomes, mitigate identified risks, and control the timeframe and budget as much as possible. Classic Airlines is a company with an extensive history of success; however, the company has recently encountered difficulties in their progression toward an effective customer service and marketing campaign. Classic Airlines faces the possibility of failure and possibly bankruptcy if their key project is does not overcome obstacles. It is critical that Classic Airlines regain their position as an industry leader in the market, increase revenue and profits, and create positive, lasting relationships with customers. To achieve this, Classic must enter into a new realm of marketing to meet a growing demand from customers and compete effectively in value and pricing. Describe the Situation Classic Airlines is the world’s fifth largest airline. Classic Airlines commands a fleet of more than 375 jets that serve 240 cities with more than 2,300 flights daily. In the 25 years since inception, Classic has grown to be an impressive organization with 32,000 employees, and last...
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...bound to be problems at all levels of the organization. Senior Health Plus (SHP) is a small, non-profit HMO based in Southern California. The company started as a grassroots organization that enjoyed a positive reputation for pioneering new ways to care for the elderly. This success has a price however, as the membership of SHP has grown exponentially in the past several years from 10,000 to 35,000 members. In response to this growth, management went on an expansion frenzy, moving all executives to a corporate headquarters, expanding regional offices from four to seven, and tripling their employees to 400. The CEO of SHP has given a mandate to create a brand for the company that will be instantly recognizable and will set SHP apart from their competitors. The study focuses on the newly created VP of Human Resources office and the conflict between herself and the VP of Marketing. The two are at odds not only on ideas for creating the brand, but also on how to change the entire culture of the organization. Is there such a thing as too much growth? Part II In this case study, the players are: Jamie Richards. She is the VP of Human Resources which was a position created in response to the unprecedented growth that SHP has experienced in the last 3 years. Jamie’s position is only 10 months old. She had left another similar organization which had suffered from poor employee morale. She wanted to work for SHP because they were different. Jamie was attracted to SHP due to their grassroots...
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... Classic is facing bankruptcy. Also, according to Renee Epsom, SVP of Customer service, Classis is not meeting the customers’ needs. The customers are telling them what they want but the company has not put the service elements, operations procedures, or marketing programs in pace to address their needs. The customer relations management system (CRM) that they have in place is not being utilized effectively. They system does not integrate the phone channel with the web channel. The company has now way of knowing if the customer that uses the automated phone system is the same customer that is using the CRM over the web. Instead of the company using this system to find out what they customers want, they used this system to decrease the amount of time their customer service representatives spent on the phone with customers. This strategy reduced labor because the company didn’t need so many reps as before the system was implemented. The system has the ability to integrate but the company did not want to invest the time or the money to do so. This ineffective CRM implementation lacks a customer focus and the company appears to have lost touch with the customers’ needs. The CEO (Amanda Miller) thinks investing in marketing is a waste of the company’s time and money. The CFO (Catherine Simpson) agrees. They are both driven by numbers. Also while the CMO (Kevin...
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...Classic Airlines Marketing Solution Michael R. Engler MKT571 7 May 2012 Professor Alan Mandel Classic Airlines Marketing Solution Classic Airlines is currently in a state of declining demand and the marketing team has been given the mandate not only to identify the underlying problems but also to find a workable solution that meets the company’s objectives (University of Phoenix, 2005). The marketing team has decided to use an aggressive problem-solving model that includes the following nine-step process: * Describe the situation * Frame the right problem * Describe the end-state and goals * Identify alternatives * Evaluate alternatives * Identify and assess risks * Make the decision * Develop and implement the solution * Evaluate results (University of Phoenix, 2004). The following paragraphs discuss each step taken through the problem-solving process and presents the final solution. Step 1. Describe the Situation Accurately describing the situation facing Classic Airlines requires reviewing the scenario, collecting information from available sources including stakeholders, and creating a problem statement that reflects the reality of situation. It is necessary to explore the whole picture and understand the context without making assumptions to paint a true picture of the situation (University of Phoenix, 2004). As a result of reviewing the available information, the marketing team has determined that Classic Airlines...
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...Management, Control & Accountability for Financial Resources INTRODUCTION The purpose of this paper is to identify the information needs of the internal and external stakeholders in a manufacturing concern and how they can be met. All stakeholders of a firm require different types of information to help them in the decision making process. The top management which comprises of the Chief executive officer and the board of director require information pertaining to the finances of the firm, the key issues of the firm and the performance of the firm to formulate the strategic policies and strategies of the firm. The middle management consisting of the marketing manager, production manager etc will require information to effectively fulfill their job responsibilities and take actions accordingly. The external stakeholders such as the shareholders have invested their hard earned money in the business and would want to be informed about how well the firm is doing and the return that they will be getting for the money that they have invested. The shareholders are usually interested in the financial reports of the firm to see how profitable and liquid the firm is and will it be able to provide dividends to them. Financial reporting is necessary for management, control and accountability purposes. It helps to assess whether the resources of the firm are being utilized in the most efficient manner and the firm is meeting its objective of generating the maximum profit. Information...
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...the United States market to Mainland China. Luxury vehicles export is special in nature due to its complicated regulations and various demands of different customers. Trover has conducted this business since 2007 and has built a sound reputation among its customers through reliable and efficient services. The head office of Trover is located in Quincy, Massachusetts, but the employees are working remotely in different cities to be in charge of the regional markets. Restricted by its scale and business pattern, the organizational structure of Trover is quite simple and direct. There are 6 full time employees, of which 5 are Regional Sales Manager working in different cities in Massachusetts and 1 Marketing Manager and several part-time Sales Specialists and Marketing Specialists. The CEO, acting as a CFO as well, takes control of the whole company. The organization chart is as follows: Organization chart of Trovers Export Mission and Challenges The mission of Trover is to provide luxury cars at a reasonable and competitive price as well as a great purchasing experience internationally for Chinese customers. Its business objectives for year 2014 are to expand customer base, increase sales volumes, and raise its reputation in the vehicle exporting industry. However, as the market of luxury vehicles export grows, the competition becomes increasingly fierce. Trover now confronts with greater challenges than before to fulfill its business objectives. The biggest challenge is lack...
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...1. How should Svanberg go about reorganizing Ericsson’s marketing, sales and R&D? How much should they be centralized or decentralized? What would be the likely consequences of such actions? In terms of marketing, a more centralized approach would be preferable. The function should probably reside at the top level of the company, allowing for synergy and marketing of complete solutions in a unified way, whereas market-specific communication would be wasteful in terms of recreating the same messages multiple times. Another approach would be moving the marketing functions into each business unit; however this again does not support the diverse nature of the company. Either solution helps reduce overhead costs and streamline communication; however with different focuses depending on how much actual crossover there is in the marketing communication between different solutions. The sales side needs its own administrative layer. The current style of direct CEO involvement was more befitting Hellström, who came from a sales background. Not only could the operations do with a more sales-centric person overseeing this part of the business, but the CEO is already extremely taxed by the need to involve himself in the details of the R&D decisions and otherwise the broad scope of the company. Taking the direct responsibility of sales away from the CEO and making it a separate function would free up valuable CEO time, which would help assure the company stays on the right course....
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...Introduction Today more than ever before, marketing is the steward of the entire customer journey and building a bond with customers wherever they are. Marketing is in the driver’s seat but with that power comes responsibility and pressure for marketers to be exceptional. But, in a crowded space it’s harder and harder to be exceptional. In today’s world marketing is crowded and your audience is constantly bombarded with marketing messages. You find yourself facing the challenge of how you can break through the noise. To accept the challenge and excel in marketing you need to embrace the shift from talking at people to engaging with people, and work to build meaningful, life-long and personal relationships. In order to build those relationships you will have to shift how you think about and how you do your marketing. You need to be innovative. This ebook explores innovation in today’s marketing world. It will show you how marketers think about, foster, and deploy innovation in their organizations and are making the shift from mass marketing to the new era of engagement marketing. “Times have already changed; customer engagement is the new battle ground on which we will be measured.” — REW NICHOLSON, CEO, D OGILVYONE DNX 01 Key Take-Aways As part of Marketo’s 2014 Marketing Nation Roadshow Tour, we surveyed the attendees at the London stop about innovation in marketing and the state of innovation in their organization. Survey participants were...
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...——————————————————————————————————————— Executive Briefing for Pinterest To: Ben Silbermann, CEO From: Ryan Ross Re: Strategic Plan Date: 04/15/2014 Executive Summary The objective of this strategic plan is to find a way for Pinterest to create revenue. Pinterest has plenty of traffic on their website, but has not found a way to create inflow of cash. The strong suggestion is to incorporate advertising to Pinterest’s website and charge a low fee to businesses using Pinterest to market their goods and services. To do this, Pinterest needs to engage in Self-Service Ads and Engagement Ads, like Facebook does. Pinterest should duplicate their revenue model on Facebook’s revenue stream. Opportunities to Create Value Through Revenue Stream Strategic Area: Opportunities to Create Value: Challenges to Create Value: Accounting • Create large cash flow for immediate expenses • Limited free cash flow Finance • Create capital for current and future investment opportunities • Lack of capability to invest in opportunities Management • Create a relationship with ad/marketing consultants • Negotiations about details with new consultants Marketing • Market new opportunities for others to advertise on Pinterest and charge fees to businesses • Lack of experience in selling Ad space and charging for business membership Opportunity and Challenge Overview • The plan to create a revenue stream will help with many areas. Every business needs money to run,...
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...functions, including due diligence of JJJ Company. The ad hoc committee was appointed by the chairman of the board (COB) of Riordan. Members of the committee are familiar with one another and have worked together in the past in various capacities. Accounting Team Representatives John and Beth are both from the accounting team and have reviewed the files for JJJ Company and are preparing to report their findings to the chief executive officer (CEO) and COB. They are not sure JJJ is financially stable enough to move forward with the acquisition. John graduated with a BA in Accounting from University of Phoenix in 1990. He joined Riordan in 2004 as a staff accountant and was promoted to accounting manager in 2007. He is a democratic leader whose focus is on sales profitability. Beth graduated with a BA in Accounting from University of Phoenix in 2008; she came to Riordan in 2007 as an accounting assistant after graduation. She was recently promoted to staff accountant by John, the accounting manager. William is the CEO of Riordan and he wants to do the acquisition—but only if it means greater profits for the company and bigger dividends for the stockholders. Although he understands business, he relies on John’s advice for the details on accounting oversight. William, finance major, graduated with an MBA from University of Phoenix in 2000. He has been president of Riordan since 2006, when he was hired by the COB. He is an authoritarian leader who is bottom-line oriented...
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...stories. February 2015| byJonathan Gordon and Jesko Perrey Science has permeated marketing for decades. Fans of the television drama Mad Men saw a fictionalized encounter when an IBM System/360 mainframe computer physically displaced the creative department of a late-1960s advertising agency. In reality, though, the 1960s through the early 1990s witnessed a happy marriage of advertising and technology as marketers mastered both the medium of television and the science of Nielsen ratings. These years gave birth to iconic advertising messages in categories ranging from sparkling beverages (“I’d like to buy the world a Coke”) to credit cards (“American Express. Don’t leave home without it”) to air travel (“British Airways: the world’s favourite airline”). Until recently, marketers could be forgiven for looking back wistfully at this golden age as new forces reshaped their world into something completely different. These new trends include a massive proliferation of television and online channels, the transformation of the home PC into a retail channel, the unrelenting rise of mobile social media and gaming, and—with all these trends—a constant battle for the consumer’s attention. The resulting expansion of platforms has propelled consistent growth in marketing expenditures, which now total as much as $1 trillion globally. The efficacy of this spending is under deep scrutiny. For example, in a survey of CEOs, close to three out of four agreed with the following statement: marketers “are...
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...Marketing Strategy Report A new product for happiness Definition of happiness Happiness is the degree, to which an individual judges the overall quality of his own life as a whole favorably, and it is generally considered to be an ultimate goal in life; virtually everybody wants to be happy. Happiness depends on many things, including income, labor market status, job characteristics, health, leisure, family, social relationships, security, liberty, moral values, and many others (Ahn et al.2004). To provide more concrete and vivid definitions, the author interviewed 15 potential consumers. Among them, 6 interviewees illustrate the similar definition, which is to do what you want with somebody you love. Other definitions provided are being together with family members, wishes to come true and so on. From the simple survey, it can be concluded that happiness plays a significant role in our lives, and it can be obtained or enhanced with the companion of people they love or care, for instance, family members or lovers. New product The product I design is the customized service of travel planner called Travel of Happiness. As known, travelling is one of the best ways to spend quality time with lovers and family members to improve their relationships. Family members will communicate and interact with each other more often with the help of the chance that eliminates the interruption of work or study. While traveling, fabulous memories full of happiness accumulate so that...
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...frustration at all levels of the company. The low compensation leads to the difficulty for the company to attract and retain top talent, especially at the store manager level. Any position could not stay vacant for long, so hiring had been more a rush scrambled than a thoughtful exercise to find the right person. c. Was the plan itself structured correctly? The plan is structured correctly when the pilot program been introduced as well as the ShareIt program. Most of the managers could succeed if they were better motivated and more stragically compensated. The store managers will be paid as much as their competition does and they will be given some freedom. The managers have the power to run the store with their own idea promotion, marketing and updating the new...
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...will first take a dive into the environmental factors of social, economic, technological, competitive and regulatory forces in order to determine the right problem. (Kerin 2005) “These five forces may sometimes serve as accelerators or brakes on marketing, sometimes expanding an organization’s marketing opportunities and other times restrict them.” Ultimately Classic Airlines will reach the point where they value their customer’s needs. Airlines will always be in demand; therefore it is imperative Classic Airlines develop a marketing plan that will ultimately keep the airlines ahead of the competition. Describe the Situation Issue and Opportunity Identification Classic Airlines has experienced a 10% decrease in share prices over the past year, along with a 19% decrease in Classic Rewards members, and 21% decrease in flights amongst remaining members. Classic Airlines Employees are experiencing low morale issues from the media input of the state of Classic Airlines. Although the Customer Relationship Management (CRM) system was inputted at Classic Airlines, Renee Epson does not feel the system is being utilized to its fullest potential. The Executive Team has different views of business practices when related to marketing. The CEO and CFO are driven by numbers therefore they do no not view the importance of the CRM system as a method of market research. (The 100 Times 2008) “Market research and analysis helps...
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