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nternal Code: TOA50
Marketing Management Assignment:
Your BriefA case study typically is an accurate, historical record of a business situation that actually has been faced by business executives. The main aim of using the case study method is to allow you the opportunity to translate theory into practice in a business situation that is as close to real world experience as possible. The marketing situation(s) depicted in the case reflects the uncertainty of the real-world marketing environment, and the reality of any practical situation. You will have to master the art of sifting through all types of information, which is often incomplete, not presented in the correct order, and may even be irrelevant or misleading, to solve the problems posed.
You may find, and be frustrated by the fact, that in some situations there appears to be no single “right” solution to the problem. There are likely to be multiple approaches, each one with a different implication for the organization, and each involving different trade-offs. Since the case study problems may be approached at times from different perspectives, your main task will be to argue correctly the logic of, and evidence for, your solutions to the problems at hand. The importance of the case study exercise is to emphasize how you arrived at your solution, rather than just emphasize the solution itself.
Getting StartedRead the case study, Fitbit: The Business about Wrist, as soon as possible, when available on Cloud in the ‘Assessment 1 Learning Resources’. A prompt start will give you time to “tune” into the case study. In particular, there is an amazing amount of relevant background information publicly available that will have some bearing on the marketing situation described in your case. Keep a look out for it! Academic journals and books, newspapers, magazines and television are an especially good place to start your information search. Collect anything that you think may help to enrich your analysis. You can always discard any irrelevant material later.
Now focus on the specific case problems posed below. These problems have been designed so that you can apply the theory from the unit to the practical case study to arrive at solutions. Critically evaluate and add to the existing information provided in your case study by:
• Continuing to read journal, newspaper and magazine articles on your topic.• Looking for current event type television programs and published brochures, etc. that may be relevant to your topic.• Observing the industry that the case is based on.
Please note: In this assignment, you are expected to utilise an extensive amount of research conducted in the discipline of marketing and related fields, to extend your knowledge. Please do NOT rely solely on your own opinions, personal experience, and the case study and other materials that you have been provided.
Case study problems1. Conduct a 5Cs and SWOT analyses with regard to the Australia market for Leclerc.2. Develop segmentation, targeting and positioning strategies for the Australia market, based on your 5Cs and SWOT analyses.
Michel-Edouard Leclerc, co-chairman of the private cooperative group E. Leclerc, France’s second largest retailer, leaned back in his chair and frowned at his executive team. It was late 2012, and Michel-Edouard was able to look back with pride on Leclerc’s stellar performance that year. However, now that he was meeting with his team to discuss plans for next year, he could see the difficulties that lay ahead. “While this year’s results have been reasonable, we need even more growth,” he said. “I would like to see profits up at least 6 percent in 2014. Even though the French market is the core of our company, international expansion is critical for our strategic growth. Let’s get back together in a week to review your proposed marketing plan for the Australia market.”
LeclercLeclerc was founded in 1949 by Edouard Leclerc. It was initially a private company, but in 1962 it became a cooperative. By 2003 Leclerc had a rather complex organizational structure with three different divisions: stores, a central governing association, and a buying group.
Leclerc stores were individually owned and operated. Each store had an owner who invested in the store, managed the operations, and enjoyed the profit. In most cases, store owners controlled several different stores. Nonetheless, store ownership was very fragmented; no owner controlled more than 10 percent of the total number of stores.
The Leclerc stores were largely controlled by Association of E. Leclerc distribution centers (ACDLec). This organization was responsible for strategy, communication, and international development of the Leclerc brand. It was run by Edouard Leclerc and his son MichelEdouard. Independent store owners paid a fee to the association in exchange for the right to use the Leclerc brand. In return, retailers had to comply with the rules set by the association. For example, every Leclerc store had to have a price index equal to or below any other competitor in a given area. An independent store owner who would not comply with those rules could lose the right to use the Leclerc brand.
The Leclerc purchasing group (Galec) was responsible for buying and general agreement negotiations with the largest suppliers. In addition, there were sixteen local purchasing groups, operating with a high degree of autonomy, responsible for buying local products.
Leclerc was primarily a hypermarket operator; the company had a network of large retail stores across France. Leclerc had more than 500 stores in France in 2012.
Leclerc was beginning to expand into other countries, but the vast majority of sales were in France. Its international operations were basically break-even. Management was optimistic, however, that the international division would be profitable in five years.