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Saint MBA565 final exam




Question;1.A company?s marketing strategy can be;customer-oriented (i.e., strategy designed by examining primarily customer;needs) or competitor-oriented (i.e., strategy based on competitors? actions).;In reality, companies do both. For the following scenarios, identify which;strategies to emphasize and why.;1. A market leader in pharmaceuticals;2. A market follower in a mature market;3. A market niche (i.e., company focused;on a small segment) in interior decoration of luxury homes;4.;A a;market challenger in a mature market with low margins and significant economies;of scale effect2.The Tropical Paradise Resort is located on;the coast of an exotic Pacific island. Room rates are $300 per night;which includes free access to the pool, gym, and tennis courts. The resort also;offers the following services;?;Aerobics;classes ($5 per);?;Therapeutic;massages ($40 per);?;Scuba-diving;trip to a nearby coral reef ($60 per);?;Day trips;to an island volcano ($100 per trip);The average stay is five days. The hotel is considering two pricing;options;1. Charge the regular room rate and charge;separately for the four services above;2.;Charge a;higher room rate, which includes the services;The resort?s;objective is to maximize long-term profits by attracting repeat and new;customers. Should they price their services separately or bundle them? Why?;Besides prices, what other factors are important in your decision? (Points;100)1. Corben Inc. has a successful brand with the;name Crunz. The market size in which Crunz competes is $4 billion, and Crunz;has generated sales of $400 million. It has a contribution margin of 30% and;annual fixed costs of $20 million. Corben Inc. is thinking of introducing;a new brand under the name of Zaturn. Zaturn will compete in the same market as;Crunz. The annual fixed costs for this brand are expected to be $40 million.;If it is launched, Zaturn will capture 10% of the market. It has a contribution;margin of 40%. Half of the sales of Zaturn will be cannibalized from the sales;of Crunz. An alternative strategy for Corben Inc. is to cancel the introduction;of Zaturn and instead to spend the $40 million (on an annual basis) to promote;Crunz. This action is expected to increase the sales for Crunz by 50%. Both;brands (Cruz and Zaturn) sell at the same price. Where should the company spend;the $40 million and why? Show all calculations! (Points


Paper#47027 | Written in 18-Jul-2015

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