Introduction to Marketing 115.116

115.116 Introduction to Marketing

Case Study 1 On Running

Semester 1, 2023

Due: Sunday 9th April, 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.

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Student name: ______________________________ Student ID: ______________________

Upload and submit this document with all your answers completed to the Case Study 1 Dropbox in the Assessments section on the 115.116 Stream site by the due date.

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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.

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: Marketing Research (3 questions - 30 marks total).

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. The shoe will take many of the shoe cushioning and support technologies that On Running has previously created and use neutral aesthetics and colorways appropriate for the workplace, while still retaining the lightness, modern design, and simplicity of previous On Running shoe designs. The shoe will also be offered using the subscription purchase model that On Running is using for the 100% recyclable Cyclon (Cloudneo) shoes where the shoe is replaced every six months.

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

• On Running needs to gather insights about people in New Zealand who work in professions that require long periods of standing and walking and who might also be interested in investing in shoes that will provide the benefits of the subscription purchase approach, lightweight, extra comfort, stability, and hard wearing. Describe and discuss two examples of secondary data that On Running could use to gather this information and state why this approach will be appropriate for them, and their research needs for this new product idea. (12 marks)

Type your answer for Q1a here:

• On Running wants to also learn more about the specific needs of people who would consider buying this new shoe for work. Describe and discuss a primary data research approach (other than using online focus groups outline in Q1c) that On Running could use to gather this information and state why this approach is appropriate for them and this specific new product idea. (12 marks)

Type your answer for Q1b here:

• On Running is considering running a series of online focus groups to research potential buyers perceptions of the new work shoe. Describe one disadvantage of online focus groups, and one advantage of online focus groups and discuss how each of them would apply to the On Runnings need to gain useful information using this marketing research approach. (6 marks)

Type your answer for Q1c here

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

Consumer buyer behaviour is influenced by four key sets of buyer characteristics: cultural, social, personal, and psychological. On Running needs to better understand the buying decision process, how buyers perceive the personality traits of their brand, and the buyer decision process for new products.

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

• A buyers personality may impact on their likelihood to purchase. Similarly, brands are often discussed as having a brand personality. Discuss which of the brand personality traits you believe that On Running uses in its positioning. (12 marks)

Type your answer for Q2a here:

• The second part of the buyer decision process is the information search. Discuss four (4) ways that On Running provides information that may help the buyer in the information search part of the buyer decision process for a pair of running shoes. (8 marks)

Type your answer for Q2b here:

• On Running has a very strong emphasis on innovation in the products that they launch. Generally, the rate of adoption of new products is influenced by product characteristics. Discuss two (2) product characteristics that would influence the rate of an innovations adoption that would apply to On Running. (10 marks)

Type your answer for Q2c here:

Section Three: Customer-driven marketing strategy (4 questions - 40 marks total).

The first step in designing a customer-driven marketing strategy is selecting which customers to serve. Like all successful companies, On Running focuses its products on the needs of consumers and then uses market targeting to decide how many and which segments to serve.

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

• Using multiple segmentation bases, describe two separate consumer segments that On Running might be targeting or could potentially target. (12 marks)

Type your answer for Q3a here:

• Now describe whether the two consumer segments you described in question 3a are accessible and differentiable. Please provide an explanation for your evaluation. (10 marks)

Type your answer for Q3b here:

• What kind of market targeting strategy would you suggest best suits On Running? Is it undifferentiated (mass) marketing, differentiated (segmented) marketing, concentrated (niche) marketing, or micromarketing? Please provide an explanation for your choice. (10 marks)

Type your answer for Q3c here:

• On Runnings successful collaboration with Loewe represented their first partnership with another brand and resulted in a new range of shoes and apparel. In respect to price and benefits, how would you describe the value proposition for this product range? Please provide an explanation for your value proposition. (8 marks)

Type your answer for Q3d here: