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MKF2131 – Marketing Decision Analysis

Case Study 1

This is an individual assignment.  You must complete and submit it as your own original work. All submissions will be processed through Turnitin.

Case Scenario

Apu  Nahasapeemapetilon, the owner of the  Kwik-E-Mart, saw declining sales, though  his store is located strategically in the heart of Springfield. He then engaged your marketing consultancy firm to analyse the data and develop recommendations to be presented to Apu.

Kwik-E-Mart is a convenience store in Springfield. In town, there are two main competitors of Kwik-E- Mart, which are Springfield Grocery Store and Swapper Jack’s. All retailers (Kwik-E-Mart and two competitors) are selling almost identical products, ranging from Duff Beer, Squishee (The Simpson’s version of Slurpee), Hot Dog and other carbonated beverages. However, some retailers offer more products than others.

For this study, a survey was sent to more than 300 randomly selected consumers in the Springfield metro area asking about their purchases in these three stores in the past year. Besides their spending habits, the survey also measured their perception of Kwik-E-Mart and its competitors in three main store attributes – price level, service quality, and range of products carried. These three factors were identified as the most critical determinants of purchase behaviour. These attributes were collected on a 5-point Likert scale for the following survey questions:

1.    On a scale of 1 (extremely unattractive) to 5 (extremely attractive), how attractive is the price charged by each of the three retailers.

2.    On a scale of 1 (extremely bad) to 5 (extremely good), how would rate the in-store and post purchase service provided at each of the three retailers.

3.    On a scale of 1 (extremely bad) to 5 (extremely good), how would rate the product variety (products and brands) carried by each of the three retailers.

On top of that, the survey also asked a question as to how likely you would refer to each of the three retailers to a friend on a scale of 1 (extremely unlikely) to 10 (extremely likely).

Dataset Key/Description

Note: If spending is zero, that means the person is not a customer of a retailer. Hence, variables price, service, assortment and ratings are set to zero.

You will be given a personalised dataset to work with.  Refer to the Excel spreadsheet for more information.

Case Tasks

At the end of your work, you will need to submit two files:  (1) Excel spreadsheet containing your calculation (with formulae), and (2) a report in Word document. Refer to the template for the Word document on Moodle.

1.    Analyse the market position of Kwik-E-Mart relative to its competitors.

Hint: Using Pivot Table, fill in the appropriate table and compute the market share based on sales. Since there are several variables here (e.g., spending, price, etc.), you need to do the Pivot Table separately for each variable.

2.    Identify the drivers of Kwik-E-Mart’s performance relative to its competitors.

Hint: Decompose the market share and compare these three retailers.

3.    Analyse your findings and identify opportunities for increasing Kwik-E-Mart’s market share.

Hint: Based on the decomposition, identify strengths and weaknesses of Kwik-E-Mart.

4.    Develop recommendations for Kwik-E-Mart using your findings from the market share analysis and attitudinal survey.

Hint: Use survey data to find if there is any difference between the three retailers in the price, service or assortment perception. You can compare average perception of each attribute (price, service, assortment) across the three retailers. At the same time, you can generate a metric based on the likely to refer survey. Develop recommendations based on your findings.

Note:

The above questions will guide you while writing your report. If you have any questions regarding the case study assignment, please ask via the discussion forum, or contact your tutor/unit coordinator.