IIBMS MBA CASE STUDY ANSWER SHEETS – According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets

IIBMS MBA CASE STUDY ANSWER SHEETS – According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets
IIBMS MBA CASE STUDY ANSWER SHEETS – According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.
Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.

 

Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?
CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.
“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”
Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.

 

IIBMS MBA CASE STUDY ANSWER SHEETS – According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets

IIBMS MBA CASE STUDY ANSWER SHEETS – According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets

 

QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.

 

Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.
The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.
1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.

 

1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

 

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.
1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.
Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).
The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations
Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.

 

Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

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EMBA IIBMS CASE STUDY SOLUTIONS – How would you change Trap-Ease’s marketing strategy What kinds of control procedures would you establish for this strategy

EMBA IIBMS CASE STUDY SOLUTIONS – How would you change Trap-Ease’s marketing strategy What kinds of control procedures would you establish for this strategy
EMBA IIBMS CASE STUDY SOLUTIONS – How would you change Trap-Ease’s marketing strategy What kinds of control procedures would you establish for this strategy

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.
Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.
Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?
CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.
“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”
Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.

 

EMBA IIBMS CASE STUDY SOLUTIONS – How would you change Trap-Ease’s marketing strategy What kinds of control procedures would you establish for this strategy

 

EMBA IIBMS CASE STUDY SOLUTIONS – How would you change Trap-Ease’s marketing strategy What kinds of control procedures would you establish for this strategy

 

QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.

 

Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.
The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.
1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.

 

1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

 

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.
1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.
Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).
The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations
Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.

 

Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

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MBA IIBMS ANSWER SHEETS – Who is Trap-Ease’s direct competition Who are indirect competitors

MBA IIBMS ANSWER SHEETS – Who is Trap-Ease’s direct competition Who are indirect competitors
MBA IIBMS ANSWER SHEETS – Who is Trap-Ease’s direct competition Who are indirect competitors

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.

Who is Trap-Ease’s direct competition

Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.

Who is Trap-Ease’s direct competition

Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?

Who is Trap-Ease’s direct competition

CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.
“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”

Who is Trap-Ease’s direct competition

Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.

 

QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.

 

Who is Trap-Ease’s direct competition

Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.
The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.

Who is Trap-Ease’s direct competition

1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.

MBA IIBMS ANSWER SHEETS – Who is Trap-Ease’s direct competition Who are indirect competitors

MBA IIBMS ANSWER SHEETS – Who is Trap-Ease’s direct competition Who are indirect competitors

 

Who is Trap-Ease’s direct competition

1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

Who is Trap-Ease’s direct competition

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.

Who is Trap-Ease’s direct competition

1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.

Who is Trap-Ease’s direct competition

Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).
The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations

Who is Trap-Ease’s direct competition

Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.

Who is Trap-Ease’s direct competition

Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

Who is Trap-Ease’s direct competition

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IIBMS DMS CASE STUDY ANSWER SHEETS – Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix

IIBMS DMS CASE STUDY ANSWER SHEETS – Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix
IIBMS DMS CASE STUDY ANSWER SHEETS – Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.

Describe the current marketing mix

Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.

Describe the current marketing mix

Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?

Describe the current marketing mix

CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.
“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”

Describe the current marketing mix

Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.

Describe the current marketing mix

 

QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.

 

Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.

Describe the current marketing mix

The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.

Describe the current marketing mix

1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.

 

IIBMS DMS CASE STUDY ANSWER SHEETS – Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix

IIBMS DMS CASE STUDY ANSWER SHEETS – Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix

 

Describe the current marketing mix

1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

Describe the current marketing mix

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.

Describe the current marketing mix

1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.

Describe the current marketing mix

Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).
The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations

Describe the current marketing mix

Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.

Describe the current marketing mix

Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

Welcome to Case Study Help

 
We at Case Study offer all types of online academic assistance, be it homework help, coursework help, case study help, Assignment help, Project Reports, Thesis, Research paper writing help.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.
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IIBMS DMS CASE STUDY SOLUTIONS – How has the company positioned the Trap-Ease relative to the chosen target market Could it position the product in other ways

IIBMS DMS CASE STUDY SOLUTIONS – How has the company positioned the Trap-Ease relative to the chosen target market Could it position the product in other ways
IIBMS DMS CASE STUDY SOLUTIONS – How has the company positioned the Trap-Ease relative to the chosen target market Could it position the product in other ways

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.

How has the company positioned

Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.

How has the company positioned

Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?

How has the company positioned

CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.

 

How has the company positioned

“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”
Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.

 

QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.

 

How has the company positioned

Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.
The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.

How has the company positioned

1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.

How has the company positioned

IIBMS DMS CASE STUDY SOLUTIONS – How has the company positioned the Trap-Ease relative to the chosen target market Could it position the product in other ways

IIBMS DMS CASE STUDY SOLUTIONS – How has the company positioned the Trap-Ease relative to the chosen target market Could it position the product in other ways

 

How has the company positioned

1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

How has the company positioned

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.

How has the company positioned

1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.

 

How has the company positioned

Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).

How has the company positioned

The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations

How has the company positioned

Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.

How has the company positioned

Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

How has the company positioned

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IIBMS EMBA CASE STUDY SOLUTIONS – Has Martha identified the best target market for Trap-Ease What other market segments might the firm target

IIBMS EMBA CASE STUDY SOLUTIONS – Has Martha identified the best target market for Trap-Ease What other market segments might the firm target
IIBMS EMBA CASE STUDY SOLUTIONS – Has Martha identified the best target market for Trap-Ease What other market segments might the firm target

 

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Business Marketing Management

 

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.

Has Martha identified the best target

Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.
Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?

Has Martha identified the best target

CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.

 

Has Martha identified the best target market

“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”

Has Martha identified the best target market

Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.

IIBMS EMBA CASE STUDY SOLUTIONS – Has Martha identified the best target market for Trap-Ease What other market segments might the firm target

IIBMS EMBA CASE STUDY SOLUTIONS – Has Martha identified the best target market for Trap-Ease What other market segments might the firm target

 

Has Martha identified the best target market

QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.

 

Has Martha identified the best target market

Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.

Has Martha identified the best target market

The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.

Has Martha identified the best target market

1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.

Has Martha identified the best target market

1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

Has Martha identified the best target market

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.
1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.

Has Martha identified the best target market

Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).

Has Martha identified the best target

The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations

Has Martha identified the best target market

Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.

Has Martha identified the best target market

Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

 

Has Martha identified the best target

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IIBMS MBA CASE STUDY SOLUTIONS – Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity

IIBMS MBA CASE STUDY SOLUTIONS – Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity
IIBMS MBA CASE STUDY SOLUTIONS – Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.
Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.
Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?
CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.
“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”
Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.
QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.
Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.
The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.
1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.
1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

IIBMS MBA CASE STUDY SOLUTIONS – Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity

Nmims Customized Assignments – A new food and grocery startup is planning to start multiple application based services in 10 major cities of India. One would be dealing with grocery

 

Martha and the Trap-Ease investors believe

1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.
1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.
Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).
The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations
Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.
Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

 

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IIBMS MBA CASE STUDY ANSWER SHEETS – One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation

IIBMS MBA CASE STUDY ANSWER SHEETS – One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation
IIBMS MBA CASE STUDY ANSWER SHEETS – One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation

 

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CASE: I    Trap-Ease: The Big Cheese of Mousetraps
One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation that she had framed and hung near her desk: “If a man [can] make a better mousetrap than his neighbor … the world will make a beaten path to his door.” Perhaps, she mused, Emerson knew something that she didn’t. She had the better mousetrap—Trap-Ease—but the world didn’t seem all that excited about it. Martha had just returned from the National Hardware Show in Toronto. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials hold a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that year’s show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. Canadian Business magazine had written an article about the mousetrap, and the television show MarketPlace and trade publications had featured it. Despite all this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease in January.
In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease. The trap consists of a square, plastic tube measuring about 15 cm long and 4 cm square. The tube bends in the middle at a 30- degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is “open,” this door rests on two narrow “stilts” attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha believed that the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. It appeals to consumers who want a humane alternative to spring traps. Furthermore, with TrapEase, consumers can avoid the unpleasant mess they encounter with the violent spring-loaded traps—there are no clean-up problems. Finally, the consumer can reuse the trap or simply throw it away. Martha’s early research suggested that women were the best target market for the Trap-Ease.
Men, it seems, were more willing to buy and use the traditional spring-loaded trap. The targeted women, however, did not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Zellers, Canadian Tire, and Shoppers Drug Mart. She sold the trap directly to these large retailers, avoiding any wholesalers or other intermediaries. The traps sold in packages of two, with a suggested retail price of $2.99. Although this price made the Trap-Ease about five times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at $1.49 per unit and estimated that, after sales and volume discounts, Trap-Ease would realize net revenues from retailers of $1.29 per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining $10,000 for advertising. Because the mousetrap had generated so much publicity, however, she had not felt the need to do much advertising. Still, she had placed advertising in Chatelaine and in other home magazines. Martha was the company’s only salesperson, but she intended to hire more salespeople soon. Martha had initially forecast Trap-Ease’s first-year sales at 500,000 units. By the end of April, however, the company had sold only a few thousand units. Martha wondered whether most new products got off to such a slow start, or whether she was doing something wrong. She had detected some problems, although none seemed overly serious.
For one, there had not been enough repeat buying. For another, she had noted that many of the retailers kept their sample mousetraps on their desks as conversation pieces—she wanted to traps to be used and demonstrated. Martha wondered whether consumers were buying the traps as novelties rather than as a solution to their mouse problems. Martha knew that the investor group believed that Trap-Ease had a once-in-a-lifetime chance with its innovative mousetrap. She sensed the group’s impatience. She had budgeted approximately $150,000 in administrative and fixed costs fore the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs and make a reasonable profit. In the first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that he order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 p.m. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson’s famous quotation.
Questions:
1. Martha and the Trap-Ease investors believe they face a once-in-a-lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
  1. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
  2. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
  3. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
  4. Who is Trap-Ease’s direct competition? Who are indirect competitors?
  5. How would you change Trap-Ease’s marketing strategy? What kinds of control procedures would you establish for this strategy?
CASE: II   GATORADE: THIRSTING FOR COMPETITIVE POSITIONING
According to Larry Dykstra, manager of marketing research for Quaker Oats, the development of a focused positioning for Gatorade has allowed the company to target core users and identify secondary markets. Before Quaker acquired the beverage in 1983, Gatorade’s previous owner had promoted it by portraying users as competitive athletes, adult men, teens, and caricatures of athletes. “When we acquired Gatorade,” recalls Dykstra, “it was a poorly positioned brand, with a lack of consistent focus.” This position stood in contrast with the way current users were defined. “There was no message on the uses of this product or under which circumstances and occasions it was supposed to be used.” When Quaker looked at marketing research, Dykstra says the company found that Gatorade’s main users were men aged 19 – 44, that they understood the product, had a good perception of what it did, and knew when to drink it and how to use it. Since Gatorade had been developed and marketed primarily in the South, Quaker wanted to find out if there was an opportunity to market the drink in other areas. A study of attitudes determined that the target could be expanded geographically.
“We felt, based on research, that could take a narrow, solid positioning of the product that is consistent with southern users and market the product in the North,” Dykstra says. Gatorade was positioned for physical activity enthusiasts as a drink to quench their thirst and replenish minerals lost during exercise better than other beverages did. Subsequent advertising in 1984 centered on these attributes. In 1985, the company moved away from this core positioning by trying to joke about the product’s competitive heritage – a strategy that failed. [TV ads showed people in different activity situations trying to make sports jokes.] A decision was made to go back to narrow positioning in 1986. “In 1987, we focused in our primary target, but there have been refinements,” Dykstra explains. “We’ve tried to portray users as accomplished but not professional athletes.” Although the drink is perceived as a “serious beverage, the ads have added a fun component by showing people enjoying it together. We tried to show people who didn’t alienate customers, but also people they could aspire to be like.” 2 An effort also was made to portray people’s motivations for using the product. A computer graphic that portrays thirst quenching was introduced—one which, according to Dykstra, came “across so strong we’ve started to change the language.” But being well-focused and consistent in developing the product over time can create other problems. “Because Gatorade is narrowly positioned in terms of users and user occasions,” explains Dykstra, growth opportunities are probably limited. So how can we go about identifying new opportunities?” The answer was to look for opportunities consistent with the product’s imagery: “About two years ago,” says Dykstra, “we conducted a large study that included a sample of current users and other possible targets, such as older men and mothers with young children.”
Quaker also looked in terms of vertical target: Should it target Gatorade toward runners or basketball players? “We built a large enough attitudinal study so we could look at people who considered themselves basketball players separate from those who considered themselves to be aerobic athletes. In the user section, we asked people, “The next 10 times you’re in this specific situation, are you going to use Gatorade?” Dykstra also felt Quaker could target mothers with active children and found this group a large market that could be targeted separately. Additionally, the company is attempting to market the product year-round. We found we were promoting our own seasonality, so we wanted to develop some continuity,” says Dykstra. Quaker has most recently started marketing the product to Hispanics. “We felt we could position Gatorade to them,” explains Dykstra, “because they are a large growing segment, sports is important to them, and their populations are centered in areas where its presence is already well developed.” An ad has been developed for this purpose and is currently being tested. “We made an effort to do it right and not offend this group,” Dykstra adds. Based on qualitative findings, the TV spot’s approach is conservative and narrow, focuses on sports, and includes family members. “We showed it to several focus groups and made sure the benefits translated.” At the same time, efforts were made to ensure that the changes and refinements would not alienate the core users and secondary targets.
QUESTIONS
1) What are the major variables that might be used to segment Gatorade’s consumer market?
2) Define the core and secondary targets for Gatorade.
3) Propose a marketing strategy for penetrating the pre-teen market.
Case III. Current Legal Issues for eBusiness
Legislation to support the development and implementation of new Information and Communication Technology (ICT) and reduce barriers to the adoption of eBusiness is an important indicator for economic success. While the EU’s legal and regulatory framework in this regard has only been gradually developed over the last years, there are valuable lessons learnt which can be leveraged  in the implementation of a legislative environment to support the adoption of eBusiness in African States.
Reflecting research carried out under the Legal-IST project, which was funded under the European Commission IST Programme, this case study addresses four recently studied  issues  determined  to  be  of  high  importance  for  eBusiness  adoption  in Europe. The  objectives was to identify, address and study legal research areas to define research and development needs for short, medium and long-term focus (with regard   to   technology,   methods,  organisational  and   human  issues,  business relationship and working groups,  national legal entities and codes) as well as to initiate  and  co-ordinate  the  analysis  of   specific  issues  of  relevance  for  ICT- businesses and to provide recommendations on each research area studied, suitable for being used and adopted by policy-makers at EC level in order to evolve current legal  framework.  This research was based on   questionnaire-based  feedback received from legal experts, SMEs, policy makers and NGOs across Europe.
The four key legal issues for eBusiness in Europe identified are:
  • Legal issues related to RFID
  • Liability of information society service provider
  • Self regulation on B2B internet trading platforms
  • Business registry.
1.1.1  RFID
Radio Frequency  Identification (RFID)  Technology  uses  radio  waves  to  identify objects  or people wearing RFID tags automatically and wirelessly. RFID has two parts: a tag  containing an identification number and reader that triggers the tag to broadcast  its   identification  number.  RFID is of  considerable  interest  in  retail, consumer packaged  goods and manufacturing supply chains in terms of potential efficiency.
Hospitals also plan to  deploy RFID to  identify patients, call up records, reduce medical  errors and improve overall productivity. For instance, a pilot project has started  in  July  2005  in  the  clinical  centre  of  Saarbrücken  in  cooperation  with companies such as  Intel,  Siemens Business Services and Fujitsu-Siemens. The study also points out other fields of application including the use of RFID in passports (in November 2005 Germany introduced the first European e-passport, equipped with biometric data stored on a RFID tag) and banknotes, use in libraries and even in the tracking of people (like for example in prisons).
The key legal implications are related to RFID tags that directly store personal data such as name, age, nationality etc. The most prominent current legal issue is the one related with the protection of privacy and data protection. The study examines which European directives  apply in relation to different categories of RFID tags, some of which only include product  reference numbers, while others can provide access to personal data  only  in  conjunction  with  a  backend  database.  Issues  related  to obligations of the data controller are also considered.
1.1.2  Liability of Information Society Service Providers
The background to this issue goes back to the adoption of the EU E-Commerce Directive, and whether there should be stronger protection for the fundamental rights and freedoms of all internet users, or whether the directive should facilitate hunting down individual internet users who broke the law by for example, sharing files and breaching copyright in music. The original intention was facilitate the establishment of Internet  Service   Providers  (ISPs)  as  a  business  model  and  not  hamper  its establishment through liability risks.
The study aims to provide a diagnosis of current liability problems as there is a general lack of regulation at the European Community level of a specific system of liability. The  study points out four fields of interest: The question of the liability of providers  of  Hyperlinks  and  Location  Tools  (where  there  is  a  general  lack  of European case law); liability for the provision of AdWords; claims for information; and problems concerning injunctions.
The main problems detected to date in relation to Hyperlinks and Location Tools are that  linking may give rise to a range of unlawful acts such as libel, intrusion of privacy, IPR  infringements, trademark infringements, misleading advertising, unfair competition and breach of contract. A large number of the complaints are brought for practical reasons:  economic precariousness or lack of knowledge of the identity of the infringing party.
In light  of  applicable legislation  and  available  case  law,  the  potential  problems concerning Adwords (where suppliers pay a premium for their goods or services to be highlighted if certain words are used in a search engine for example) are related to the legal definition of the concepts “keyword” and “metatag” and the legal nature of the “Adwords System”.
The potential problems in relation to issue of claims for information are the lack of harmonised legislation on the obligation for the ISP to retain traffic data and the lack of harmonised legislation related to claims for information.
With  regard  to  injunctions  the  study  considers  problems  related  to  intellectual property   infringements,  and  specifically   some  specific  responsibilities  of   the intermediary.

 

IIBMS MBA CASE STUDY ANSWER SHEETS – One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation

IIBMS MBA CASE STUDY ANSWER SHEETS – One April morning, Martha House, president of Trap-Ease, entered her office in Moncton, New Brunswick. She paused for a moment to contemplate the Ralph Waldo Emerson quotation
1.1.3  Self Regulation on B2B Internet Trading Platforms
While across Europe there is eCommerce related legislation at both a national and European  Directive  level,  self-regulation  is  still  an  important  facet  of  Internet regulation. The development of codes of conduct is actually encouraged by the Directive on Electronic Commerce (2000/31/EC – Article 16). Legal issues related to self-regulation are analyzed from the perspective of legal validity and enforcement, including different types  of  self-regulation such as codes of  practice /  codes of conduct, the use of trust marks and labelling, and best practice guidelines and their legal implications. There are valuable lessons to be learnt that can be considered for adoption in other jurisdictions outside Europe.
Because of rapid technical developments and the trans-national nature of Internet trading   platforms,  self-regulation  was  proposed  as  a  solution  to  increase  the willingness of businesses to join a B2B trading platform. Part of the focus of this study is to develop a template for such a voluntary code of conduct, identifying the main  features  of  self-regulatory  mechanisms  and  discussing  the  opportunity  to address the identified barriers of entry on the B2B Internet trading platforms through self-regulation rather than state intervention. It also outlines future research required into how efficient a tool  self-regulation can be for those considering joining a B2B trading platform.
1.1.4  Business Registry
An  electronic  business  registry  (eBusiness  registry)  is  a  software  system  and infrastructure that enhances information channeling and interactions, required by eBusiness. It enables organizations to store information, select business partners and provide content for customers. However, information supplied by such a registry may raise  issues related to data protection and liability issues, depending on the quality and standards of its service.
Using data  warehousing techniques, allows analysis of  data  in  a  registry easy. However, depending on the methods used, information of varying quality can be produced. The study on business registry gives a clear overview over what business registries are as well as of legal issues regarding this sector. It ends with a summary of legislative recommendations.
Barriers to eBusiness
The B2B Expert Group identified a series of factors that might explain the reluctance of  businesses (and especially  SMEs) to  fully engage in  electronic trade. These include:
o    lack  of  awareness  regarding  the  risks  and  benefits  of  joining  a  trading platform,
o    difficulties in identifying the most suitable platforms for them to join,
o    incompatibilities between technical standards,
o    insufficient  information  about  the  rules  applicable  to  the  marketplace
Transactions,
o    financial barriers (costs of implementing a secured transaction protocol and maintaining IT systems and websites).
The study recommends:
  1. The formulation of Guidelines on the procedures to be followed in drafting a code of conduct and in the involvement of relevant stakeholders
  2. Studying the  true  effectiveness  of  the  codes  of  conduct  in  modifying  the behaviour of market players, or marketplace operators. Such a research should include concrete examples of market changes brought by the implementation of self regulatory measures
  3. Carrying out legal research on the enforceability of the provisions of codes of conduct by business partners or by third parties and available dispute resolution mechanisms.
  4. Carrying out legal research regarding trust marks, what rules govern their activity and the extent of their certification obligations
Key Conclusions
For RFID, it is essential there is good coordination between technologists, regulators, legislators, and consumers to ensure that RFID can realize benefits to businesses and the wider society. Use of RFID requires serious consideration of data protection  and data security implications, which in turn requires re-examination of the traditional    legal principles and instruments.
For Liability of ISPs, it is essential to review the liability regime, taking into account the  special role of ISPs in the Information Society. Greater legal certainty can be achieved by  providing a legal definition of the appropriate court and out-of-court action and procedures.
Technical rules for business registries should be standardized in order to protect privacy of communication and to assure integrity and security of communications.
Self-regulation including  use  of  codes  of  conduct  is  essential  for  B2B  Trading Platforms. The creation of guidelines to help in the drafting of codes of conducts would  be  very  beneficial. However, research into  the  enforceability of  codes of conduct is recommended.
Questions:
  1. Are similar legal issues currently being faced in your country or region?
  2. What relevance do you believe such legal related issues have for your region or country?
  3. What cultural, legislative or other barriers exist to successful adoption of eBusiness in your country?

 

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We at Case Study offer all types of online academic assistance, be it homework help, coursework help, case study help, Assignment help, Project Reports, Thesis, Research paper writing help.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.
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EMBA IIBMS CASE STUDY SOLUTIONS – Retail giant wal-mart annually spends close to a half billion dollars on advertising, so the company_s decision in the first month

EMBA IIBMS CASE STUDY SOLUTIONS – Retail giant wal-mart annually spends close to a half billion dollars on advertising, so the company_s decision in the first month

EMBA IIBMS CASE STUDY SOLUTIONS – Retail giant wal-mart annually spends close to a half billion dollars on advertising, so the company_s decision in the first month

 

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Artising Management

Attempt Only 4 Case Study
Case I- The Day That Wal-Mart Dropped the Smiley Face
Retail giant wal-mart annually spends close to a half billion dollars on advertising, so the company’s decision in the first month of 2005 to run full-page ads in more than 100 newspapers was not really surprising. What was surprising was the copy in those ads, which said nothing about low-priced toasters or new music CDs. Instead, the ads featured a photo of workers in their blue Wal-Mart smocks and a letter from Wal-Mart CEO Lee Scott. Scott’s letter was blunt and to the point: “When special interest groups and critics spread misinformation about Wal-Mart, the public deserves to hear the truth. Everyone is entitled to their own opinions about our company, but they are not entitled to make up their facts.”
Not the sort of message many would expect from a company whose television ads often feature a yellow “smiley-face” flying around a Wal-Mart store lowering prices. But it is a clear sign that Wal-Mart believes it can no longer afford to ignore several societal trends that threaten the company’s success and profitability.
Wal-Mart is the largest and most successful retailer in the world. It employs more people than any other private company in the United States (almost 1.2 million) and has world-wide sales of over a quarter trillion dollars, more than four times that of its nearest competitor. The foundation of this impressive record is the company’s ability to keep it promise of customer-friendly service and low prices.
But with success comes attention and not all of it good. Several lawsuits claim Wal-Mart shorts overtime pay and one lawsuit claimed female employees face discrimination in pay and promotions. Wal-Mart’s expansion plans have also run into trouble, as some cities and states, citing concerns ranging from low wages, inadequate benefits, environmental damage, and harm to local economies, have passed laws to make it difficult or impossible for Wal-Mart to build its giant superstores.
In response to past criticisms of its diversity policies, Wal-Mart created company-wide postings of promotional opportunities, created a new position for a director of diversity, and slashed the bonuses of managers who fail to achieve diversity hiring targets. Scott himself stands to lose $600,000 from his annual bonus if Wal-Mart does not meet diversity goals. Recent years have also seen the CEO spend more time meeting with investors, community groups and the media.
But in recent years Wal-Mart has begun to use advertising as a way of addressing criticisms that the company is not a good employer. At first, much of this advertising was “soft-sell” emphasizing happy Wal-Mart employees. The new campaign is clearly more direct: The copy seeks to address misperceptions about employee wages and benefits, noting that full-time company employees are paid an average of $ 9.68 – substantially higher than what is required by federal law (%5.15). The copy also notes that a majority of Wal-Mart employees said benefits were important to them when they chose to take a job at the retailer. Complementing the ads is a PR campaign in select cities using employees and press conferences. In Tampa, Florida, for example, employee Michael Martin told reporters, “I’m making more after working four years at Wal-Mart than I did after nine years at Winn-Dixie.” Martin, a department manager, noted, “I left Winn-Dixie because I couldn’t get a promotion. Here I got one after six months.”
Why is the company using a new approach? “For too long, others have had free rein to say things about our company that just are not true,” said lee Scott, president and chief executive office. “ Our associates [Wal-Mart speak for employees] are tired of it and we’ve decided to draw our own line in the sand.” It is too soon to know if the campaign will succeed, although some are already skeptical. According to retail marketing consultant Jordan Zimmerman, aggressive mage campaigns like Wal-Mart’s are rare and costly. And ads that directly address the company’s critics will not likely replace the company’s regular advertising (including the smiley face), which is not scheduled to change any time soon. But the new ads do constitute a small change in the nature of the dialogue Wal-Mart has with consumers and society. Only tie will tell if they help Wal-Mart to stay on top.
 EMBA IIBMS CASE STUDY SOLUTIONS – Retail giant wal-mart annually spends close to a half billion dollars on advertising, so the company_s decision in the first month
EMBA IIBMS CASE STUDY SOLUTIONS – Retail giant wal-mart annually spends close to a half billion dollars on advertising, so the company_s decision in the first month
Questions:
  1. What is Wal-Mart doing with its latest campaign? What are the difficulties involved in such an effort?
  2. A recent Advertising Age article noted that Wal-mart customers are less likely to read newspapers and more likely to watch television than the population as a whole. Why, then did Wal-mart choose newspapers for its new campaign?
  3. Analyze this Wal-Mart campaign and explain its purpose referring to the discussion in this chapter of the roles and functions of advertising. What is its primary purpose? Do you think it will be effective at accomplishing that purpose?

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EMBA IIBMS CASE STUDY SOLUTIONS – Why do large clients like Samsung wish to work with giant holding companies like WPP instead of with smaller agencies

EMBA IIBMS CASE STUDY SOLUTIONS – Why do large clients like Samsung wish to work with giant holding companies like WPP instead of with smaller agencies

EMBA IIBMS CASE STUDY SOLUTIONS – Why do large clients like Samsung wish to work with giant holding companies like WPP instead of with smaller agencies

 

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Advertising Management

 

 
Case IV – Wpp’s Owner-a British Knight with Every (Marketing) Weapon at His Disposal
To the uniformed, nothing about Martin Sorrell or his company, the WPP group, may be quite what it seems. Although he was awarded a knighthood, Sir Martin is anything but a reserved aristocrat. And while WPP is one of the four largest agency holding companies in the world, the initials actually stand for Wire & Plastic products, the British company Sorrell used to gobble up some of the world’s most famous advertising agencies. The roster of agencies now under the WPP’s wing includes industry leaders Ogivly and Mother, Burson-Marsteller, Hill & knowlton, young & Rubicam, and J. Walter Thompson, to name just a few.
            Large conglomerates like WPP made frequent headlines in the 1990s, a period of great consolidation in the advertising industry. Faced with harsh economic and business realities, individual advertising agencies chose to give up independent existence in order to become parts of large communication companies that offered clients all the tools for an integrated campaign, including advertising, direct marketing, public relations, and sales promotion. In the new millennium, dealing with one (or several) of the four large holding companies, WPP Group (England), Interpublic(U.S), Publicis Groups (France), and Omnicom (U.S), is the way the world’s biggest advertisers do business.
            While each of the conglomerates is led by a charismatic and dynamic individual, none appears to have an edge on Sorrell, who was described in a recent Fortune article as “…confident, witty, and a tod arrogant, talking rapidly about the future of advertising and the challenges of keeping fractious clients and ad agencies happy.” Fortune also noted that “In an industry populated by shameless schmoozers, the 59-year-old Sorrell is in a league of his own.”
            These characteristics have served Sorrell well, In 2004 he squared off against rival Publicis Groups and its CEO, Maurice Levy, in pursuit of one of the last great independent agencies, Grey Advertising, New York. During the battle Advertising Age opined that Publicis had a big advantage because Levy and Grey chair Edward Meyer were friends and had spoken about merging in the past. In addition, both Grey and Publicis created ads for consumer giant procter & Gamble, while WPP agency Ogilvy & Mather counted P&G’s competitor Unilever among its most important clients. (It is customary for agencies not to work for competing accounts.) A Unilever spokesperson, asked for his thoughts about the possibility of working with an agency that created ads for his most important rival, suggested that “In the past, we’ve not seen it to be such a good idea. “But nobody familiar with Martin Sorrell was surprised when at the end of the day he convinced Grey to sign with WPP and persuaded Procter & Gamble to stay as well.
            Unlike many of his peers, Sorrell has never written a word of copy, nor has he ever penciled a print design or directed a broadcast commercial. Sorrell’s talents are organizational and strategic; although he is an expert in the world of finance, Sir Martin cautions, “I may be a bean counter, but I’m not an accountant.” To drive home the point he posed for WPP’s annual report surrounded by lima and pinto beans.
            So how does Martin Sorrell continue to win in the high-stakes agency world? His vision, developed years before most of his rivals caught on, that twenty-first-century clients would want a complete menu of marketing communication services, all of which work synergistically, is one important reason for his success. Tenacity, energy, focus, and a willingness to do whatever is needed to win are also traits that come to mind. All these are illustrated in the story of Sorrell’s drive to land Korean giant Samsung when the company put its advertising up for review in the spring of 2004. Samsung spends almost $400 million each year supporting its brands, which is reason enough for agencies to salivate for the account. Sorrell believes that the company holds even greater appeal because of his forecast that advertising growth in the twenty-first century will come disproportionately from Asia.

EMBA IIBMS CASE STUDY SOLUTIONS – Why do large clients like Samsung wish to work with giant holding companies like WPP instead of with smaller agencies

EMBA IIBMS CASE STUDY SOLUTIONS – Why do large clients like Samsung wish to work with giant holding companies like WPP instead of with smaller agencies

 

            So Sorrell did whatever he could to attract Samsung’s attention. Like any savvy agency head, he assigned his best people to generate creative ideas to pitch to Samsung executives. But unlike most agency heads, he didn’t stop there. After discovering that a Samsung-financed museum was having a grand opening in Seoul, Sorrell jumped on a plane and ended up being the only agency person there. Samsung executives found themselves receiving emails from Sorrell at all time of the day and night. Peter Stringham, marketing director of HSBC, a company that Sorrell landed after several years of trying, commented, “Martin can be quite persistent. He was there from the first meeting to the last. He’d pitched to us a couple of times before and not gotten the account, but he’d had his eye on it for years.”
            Needless to say, in the fall of 2004, Samsung announced it was awarding its account to WPP. In the new millennium, British knights may not wear armor, carry a crest, or rescue damsels in distress. But Sir Martin Sorrell knows how to triumph in the competitive world of advertising agencies.
Questions
  1. Why do large clients like Samsung wish to work with giant holding companies like WPP instead of with smaller agencies?
  2. What qualities help Sorrell to be successful? Why are these qualities so important for his company’s success?
  3. Explain how Martin Sorrell wins clients and builds positive agency-client relationships. How does he see the agency’s role in marketing?

 

Welcome to Case Study Help

 
We at Case Study offer all types of online academic assistance, be it homework help, coursework help, case study help, Assignment help, Project Reports, Thesis, Research paper writing help.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.

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