Marketing Management

Assignment information (e.g., background info, assignment question, further advice):

Case Study: Subscription Box

This assignment is a way to apply course material on Segmentation, Targeting, and Positioning (STP) on the case of a new product development.

You will come up with an idea for a subscription box, which is “a bundle of related items that are shipped to consumers at regular intervals, e.g., weekly or monthly, for a fixed, pre-determined, per-box fee” (Bernstein et al., 2019, p. 1). This is a good domain to apply your knowledge of STP, as subscription boxes tend to target very specific, niche groups, and a subscription box could be made for just about any target market. It, therefore, allows you to work on something that is relevant to your interests/hobbies.

The appeal of subscription boxes usually goes beyond the satisfaction of functional needs and may involve, for example, the discovery of products and brands not previously known, a surprise, a curated consumption experience, or a low-risk opportunity to test out new products. While some companies do not disclose what subscribers will find inside the box before it arrives at their doorstep, others may send a pre-selection of the content or allow customers to state their preferences. A critical challenge is to manage the content offered inside each box to engender customer retention, that is, being able to come up with different combinations of goods/brands that will keep subscribers happy over time.

You should do your own research on subscription boxes, but the following links offer you a good start:

https://www.forbes.com/sites/richardkestenbaum/2018/05/30/the-subscription-box-business-continues-to-grow-and-change/#32667f02c3e4

https://www.retailgazette.co.uk/blog/2021/08/the-rise-and-rise-of-subscription-boxes-in-uk-retail/

https://www.subbly.co/blog/product-procurement-subscription-boxes/

https://www.allsubscriptionboxes.co.uk/category/box/

Essays that display creative work, going beyond the boundaries of an average response to this assignment and demonstrating meticulous, imaginative marketing planning, will be nominated to the IMS Creativity Award.

Task 1: Describe an idea for a new subscription box.

You must come up with your own subscription box. You CANNOT do this assignment on an existing one. If you are struggling to come up with one, start with what your hobbies and interests are, and how a subscription box could be made around that. You can also do an internet search to help generate ideas. Keep in mind that yours will need to be unique. If there are other subscription boxes in the same/similar product category as yours, that is fine, but you will need to talk about that in your assignment (e.g., how yours will be positioned differently, will target a different market segment, etc.).

Just about anything can be a subscription box, so long as it lends itself well to be put in a box and shipped (a “construction materials” subscription box might be a bit pricey to ship). Remember that subscription boxes are delivered regularly (rather than being a one-off purchase), so make sure that your subscription box idea lends itself well to being able to create varied, interesting boxes long term.

You can either come up with a subscription box for a new imaginary start-up or for an existing company as long as the existing company does not currently offer a subscription box (nor has done so in the past).

However, you CANNOT create a new subscription box for a company that currently offers subscription boxes (e.g., you cannot think of a line extension for Hello Fresh nor Gousto). Please notice that you CANNOT write this assignment on a digital subscription service, such as Spotify or Netflix, either.

Most subscription boxes are for profit, but if you have an idea for one that is sustainable as a non-profit, you can definitely write your case about it.

When presenting your subscription box idea, you must outline the name of your subscription box, what category it is in (e.g., makeup/beauty, toys), how frequent it will be, and the specific products might this subscription box carry (types of products, specific brands, etc.; be as specific as possible so you convey a clear idea of what your box will look like).

Task 2: Define the target market segment for your subscription box (one market segment only) and explain how your subscription box will cater to the needs of your target market segment.

Start by defining both segmentation and targeting using reputable academic sources. Next, describe the combination of segmentation criteria (e.g., demographics, psychographics) you will use and why you have selected them.

The segmentation criteria chosen will probably allow you to identify several potential market segments for your subscription box, but you will select only ONE market segment to target, justifying your choice (e.g., potential revenue, segment size, growth rate, fit with overall business strategy and company resources, etc.). Even if you believe that your subscription box could appeal to multiple market segments simultaneously, focus your case study on the analysis of only one target market segment.

Describe your target market segment and their needs in some detail and explain how your subscription box will be able to cater to those needs over time.

Make sure to back up your claims about consumers with reputable academic, industry, and news media sources (see the following section: “Key/Suggested references”).

Task 3: Determine your two most important competitors and discuss their current brand positionings.

Start by naming your two most relevant competitors. Even if you are able to identify more than two competitor brands, focus your case study on the analysis of the two most important ones. Please notice that your main competitors must be existing businesses (not imaginary).

Subsequently, explain why you consider these two brands to be your key competitors. Be mindful that, depending on your chosen frame of reference (“the business you see yourself competing in” – see Levitt, 1960), the set of relevant competitors might change. Remember that you might not only be competing with subscription boxes that are literally in the same category as you, but also any other product/service that caters to the same customer needs.

Next, define what positioning is using reputable academic sources, and describe your two key competitors’ current positionings on the market.

Make sure to back up your claims about competition with reputable academic, industry, and news media sources (see the following section: “Key/Suggested references”).

Task 4: Develop a compelling brand positioning for your subscription box, tailored to your target market segment.

Describe the brand positioning of your subscription box. Make sure to discuss what sets you apart from your two key competitors identified in “Task 3” (your points of differentiation). Remember that your target market segment must perceive value in your points of differentiation. You must also outline the main reasons to believe in your positioning, that is, offer compelling evidence and reasons why customers can have confidence in your differentiation claims.

Again, make sure to back up your claims about consumers and competitors with reputable academic, industry, and news media sources (see the following section: “Key/Suggested references”).

Important requirements

The formatting requirements for the case study are the following: 1,500 words (± 10% max.), 12 pt. Times New Roman, 1-inch margins, 1.5-line spacing Word file.

You can choose whether or not to use headings/subheadings. If using headings/subheadings, you are free to choose how to best label them. The use of “task 1”, “task 2” etc. as headings is discouraged. You should strive to find informative headings/subheadings. But use them wisely; you want your essay to flow.

Although this is a practical exercise, you must reference appropriately and consistently using the Harvard style. Do not forget to include a list of references at the end of your assignment. Notice that this list does not count for your word limit.

Also, this essay is an independent and original piece of work and students must not work together. Academic Integrity is expected.

Key/Suggested references:

All the course readings registered in the module’s reading list, including:

· Kotler and Armstrong (2021). Principles of Marketing – 18th Global Edition. Harlow: Pearson

· Levitt, T. (1960) ‘Marketing myopia’, Harvard Business Review, 38(4), pp. 45–56. Available at: http://0-search.ebscohost.com.catalogue.libraries.london.ac.uk/login.aspx?direct=true&db=buh&bquery=JN+%26quot%3bHarvard+Business+Review%26quot%3b+AND+AN+6774995&type=1&searchMode=Standard&site=ehost-live.

Moreover, Mintel Academic and Mintel Market Sizes, Statista, Marketline reports in Business Source Premier, and Hoovers reports in Nexis offer good resources for information on consumers and competition.

In addition to the general library search, you should consult Business Source Premier when looking for academic papers.

Refer to the library guide for IMS for more databases where you can find reputable sources for your assignment.

Check the section “Important Resources” on our VLE page.  There, you can find video guides on how to search databases offered by the Library, tips on writing, information on Harvard referencing, study skills support, and other relevant resources to develop your case study.

Tutorial details (e.g., time, room, preparation needed):

Please check your personalised timetable.

Word limit:

1, 500 words ± 10% max.

Referencing style (e.g., APA, Harvard):

Harvard

Submission date and time:

10^th March 2023 at 12 pm (noon) GMT

Please note that this is a hard deadline. In case of acceptable extenuating circumstances (EC), please submit an EC application following the guidance on the Goldsmiths webpage to request a deadline extension (typically 5 working days) or a deferral. The decision to accept your request lies with the Registry Operations team, not your module leader. If you are applying for an extension, you are encouraged to submit your work within 5 working days past the deadline because the outcome of your EC application may be communicated to you after the granted extension period. If you have a RASA where a deadline extension is listed as a reasonable adjustment, you will automatically receive a 10-working-day extension (no need to request this extension). For any questions about EC or RASA processes and applications, please get in touch with the PSST Hub (not your module leader) using the "Assessment" online form available in the section "Ask us for help" on Goldsmiths Student App and School Hubs website.   

Submission details:

Please submit via the online link on the module page and include the following information on the front page of your submission:

· Student ID number

· Programme of study (e.g., BSc Marketing)

· Module (i.e., Marketing Management)

· Date

· Assignment title

· Word count

Marking scheme:

Marking will be in accordance with the general IMS undergraduate marking rubric:

Answer. (Does the coursework address the question/issue or meet the assigned aims and keep on topic? Is there a comprehensive understanding of the topic?)

Structure. (Is the structure clear and material presented in a well argued, coherent and synthesised manner?)

Writing Style. (Is the writing fluent and of a good standard with few errors in spelling, punctuation or grammar?)

Level of Reading. (Is the topic well researched and supported? Is there evidence of using a range of high-quality sources?)

Quality of Referencing. (Is the work appropriately sourced? Are the references well formatted and written up accurately and consistently?)

Any other information:

Questions about this assignment should be posted on the respective “Case Study queries” forum on the module’s VLE page. The module leader will answer within three working days (do not expect replies over the weekends or holidays). Only questions posted by the 9^th of March at 12 pm (noon) GMT (i.e., the day before the assignment is due) will be answered.

You can (and should!) also ask any questions about this case study during the lectures and tutorials.