115.116 Introduction to Marketing

115.116 Introduction to Marketing

Case Study 2 On Running

Semester 1, 2023

Due: Sunday 11th June, 11.55pm (NZ time)

Please type your answers in the spaces provided

Do NOT work with or discuss your answers with other people. Unlike the Workshop Exercises, this is strictly an individual assessment.

Please ensure that your name and student ID number are entered below.

Student name: ______________________________ Student ID: ______________________

Upload and submit this document with all your answers completed to the Case Study 2 Dropbox in the Assessments section on the 115.116 Stream site by the due date.

WARNING: Like all assessments in this course, your answers to Case Study 2 will be processed by Turnitin. Copying another persons work, or using external sources of information without the appropriate attribution and referencing in this test, could result in you being in breach of the Massey University Academic Integrity Policy: https://www.massey.ac.nz/massey/fms/PolicyGuide/Documents/Academic/Student%20Academic%20Integrity%20Policy.pdf

QUESTION PREVIEW

ANSWER ALL THREE (3) SECTIONS for a total of 100 marks

All the questions are based on the On Running case that has been provided to you in the Assessments Section of the Stream site the exact same case you used for Case Study 1.

NOTE: It is expected that you will use the textbook and ideas discussed in the workshops (Internal students) and Zoom Q&A Sessions (Distance students) and any advice provided in the Assessment Forum on Stream to help answer the questions.

Ensure that your answers are provided in the spaces within this question paper.

We recommend you read all three (3) sections before starting to answer any of the individual questions.

The suggested length of your answer is only a guide. The recommended word count is a suggested maximum. Depending on your understanding and writing ability, you may require less or more words than indicated.

Section One: Pricing (3 questions - 30 marks total).

Price can be defined as the sum of all the values that customers give up in order to gain the benefits of having or using a product. Pricing decisions are subject to an incredibly complex array of company, environmental, and competitive forces. On Running must consider all these factors when setting the price for a product to ensure that their product is both viable and will sell.

(Suggested word count guide - approximately 750 -900 words / 1 - 2 pages in total or about 250-300 words per question).

Discuss how would On Running determine the floor price (the lowest price On Running could feasibly charge) and ceiling price (the highest price On Running could feasibly charge) for a pair of On Running shoes? (Note: you do not need to calculate the actual prices, but you need to discuss the process for how On Running would determine each of these prices). (12 marks)

Type your answer for Q1a here:

Since On Runnings products are often priced higher than those of the main competitors who sell a similar range of shoes and apparel, explain how competition-based pricing would be applied to On Running. (10 marks)

Type your answer for Q1b here:

If On Running was considering a permanent decrease in the price of its complete range of shoes as a response to the global cost-of-living crisis, explain TWO (2) external reactions to price changes that they should take into account when considering the new lower prices. (8 marks)

Type your answer for Q1c here:

Section Two: Distribution (3 questions - 30 marks total).

On Running sells their products across the world using a multichannel distribution system through their own website, e-commerce platforms, and On Running retail stores, alongside partnerships with a wide range of distributors and retailers across the globe.

(Suggested word count guide - approximately 750 -900 words / 1 - 2 pages in total or about 250-300 words per question).

Describe each of the distribution channels that On Running is using to deliver product to customers. Then explain what the benefits and risks that the multichannel distribution system that On Running uses are for the company. (12 marks)

Type your answer for Q2a here:

In making products and services available to consumers, channel members add value. Among the channels the company uses, On Running works with retailers to sell their products in various countries. Discuss TWO (2) functions that retail intermediaries perform that add value to On Running. (6 marks)

Type your answer for Q2b here:

Torpedo7 (https://www.torpedo7.co.nz ) is a large New Zealand outdoor adventure retailer with the best in bike, snow, camping, water gear, outdoor clothing, footwear, and more and is a wholly-owned subsidiary of the Warehouse Group Limited and uses 24 large-format warehouse type physical stores across New Zealand alongside a successful webstore. They run a loyalty programme and regular sales promotions to support their customers. Torpedo7 is one of a range of retailers that On Running uses to sell its shoes in New Zealand alongside their own website on-running.com.

Explain which Distribution Strategy you believe On Running uses and reflecting on this strategy, discuss reasons why Torpedo7 MAY NOT BE an appropriate intermediary for On Running in the New Zealand market. (12 marks)

Type your answer for Q2c here:

Section Three: Integrated Marketing Communications (4 questions - 40 marks total).

In Section One of Case Study 1 you were told that On Running is contemplating designing a shoe specifically for people who spend a lot of their working day standing and walking on their feet, for example, nurses and retail assistants and other similar professions. Now imagine that based on insights derived from marketing research, On Running has decided to go ahead and produce and launch this shoe. You have been asked to develop a marketing plan for this new product launch. You know that Integrated Marketing Communications (IMC) includes the following: advertising, public relations, sales promotion, direct and digital marketing, and personal selling. The main objective of your IMC strategy is to create awareness of the new product around the world.

(Suggested word count approximately 900 - 1000 words / 2 - 2 pages or roughly about 300-350 words per question)

Choose TWO (2) Digital Marketing tools that you believe will be most effective to achieve the main objective of the marketing plan for the new shoe, briefly describing how On Running would use each tool and provide a justification for each tool you have chosen and how you propose On Running uses that tool. (12 marks)

Type your answer for Q3a here:

Choose TWO (2) Public Relations tools that you believe will be most effective to achieve the main objective of the marketing plan for the new shoe, briefly describing how On Running would use each tool and provide a justification for each tool you have chosen and how you propose On Running uses that tool. (12 marks)

Type your answer for Q3b here:

Describe an example of how On Running could use Influencer Marketing to achieve the main objective of the marketing plan for the new shoe and provide justification for your example. (6 marks)

Type your answer for Q3c here:

On Running regularly uses email marketing to communicate with and promote to customers. The company carefully ensures that they comply with the many international laws that govern the capture and use of customer email. The company obtains customers permission to send them emails. On Running encourages customers to give them permission to email them with the enticement of keeping them up to date with new products, exclusive events, and providing them with notifications of sales promotions. However, the key reason for On Running obtaining customer email addresses is to better target their promotions and email marketing and ultimately to sell more product. While this approach is legal, it does raise questions ethically. Explain whether you believe this approach is ethical and provide a list of arguments for and against your position. (10 marks)

Type your answer for Q3d here: