MKG701 Marketing Management
NOTES TO CANDIDATES:
This assessment task is worth 40 percent (40%) of your overall assessment this session.
This assessment consists of:
· Four (4) compulsory case study questions, worth ten marks each for a total of 40 marks. There is a word limit of 1,000 words (+/-10%), that is approx. 250 words per question.
Do not exceed suggested word length. Only the requested number of words (+/-10%) will be marked.
Answers should be short answer format that relates course theory to the case study. In- text referencing is NOT required.
Remember to submit your responses via Safe Assign by exam week, Monday, 12/02/2018, 5.00pm (AEST).
This is an individual task. You must complete this task independently and not in discussion with other students.
Please clearly identify your submission with student name and number etc. on a cover sheet
The Case Study: Clea
lue is the world’s number one selling pregnancy test
lue is sold in 35 countries with over 30% global market share with continued growth past five years3. Over 65million Clea
lue tests are sold every year around the world2. Clea
lue offers superior products in pregnancy and ovulation testing, including the only pregnancy test
and with digital technology and allowing measurement of the level of hCG to indicate the number of weeks since conception (it is as accurate as ultrasound at determining the date of pregnancy) 4. Clea
lue is the only pregnancy testing
and to significantly invest in media around the world, with and has gained “top of mind” awareness5. Clea
lue has unrivalled consumer insights, based on over 200 consumer studies, interviewing over 150,000 consumers and collecting over 400,000 urine samples in the past 25 years1.
Key insights about the target market include;
· 80% of women have used at least one pregnancy test11
· The pregnancy testing experience is highly charged in emotion11
· Between 5 and 7% of women are trying to conceive at any given moment9
· In 93% of cases, purchase is planned before the customer enters the store6
· 64% of women want to choose themselves without store staff assistance and want privacy from other shoppers7
· 100% of women expect absolute accuracy in their test results8
· Most women need in-store education to help select the right product9
· The product is associated with low price elasticity of demand10: with price being relatively low (7th in relative importance) regarding criteria for purchase
· 98% of women are not concerned about paying extra for innovative pregnancy tests12
· Women expect to pay 25-30% more for a digital pregnancy test as compared with a non-digital pregnancy test13
· 93% of shoppers follow the pharmacist’s recommendation14
· 50% of women test for pregnancy twice11
· Research indicates 100% customer satisfaction with Clea
lue Digital, as compared with the nearest competitor (Femitest Jet Ultra) at 61%15
lue’s global dominance in 2015, Clea
lue was not the number one
and in Australia. Market share was only 17%, half the global average16. A review of the Australian retail landscape revealed the following;
lue digital tests were 80% more expensive than a non-digital test16.
· Australian pharmacists had not received any training on Clea
lue or the product category17.
· Australian retail stores (grocery and pharmacy) provided no in-store education17.
Using the above insights, you are asked to provide marketing strategy recommendations to Clea
lue Australia, focusing on addressing the following four questions;
Q1: Provide an outline of the consumer decision process for the pregnancy test consumer. Discuss why this process is important for Clea
lue marketers to complete. Finally, share your recommendations for Clea
lue at each stage of the consumer decision process?
Q2: Pregnancy tests are an inelastic price category. Discuss how the inelastic nature of priced demand impacts the pricing strategy and tactics for Clea
lue pregnancy tests.
Q3: Pharmacies are an important distribution channel for Clea
lue. (a) What type of channel power do pharmacy retailers have over Clea
lue? (b) What are the implications of this when dealing with channel conflicts? (c) Provide at least two strategies for managing channel conflict.
lue is a global
and. Define and outline why Clea
lue should consider the ten commandments of global marketing when adapting in-store education materials from other global markets to Australian retail stores. Choose three (3) from the ten commandments of global marketing and provide a recommendation for each that Clea
lue should consider when adapting in-store education materials from other global markets to Australian retail stores.
XXXXXXXXXXPharmacy Detailer Kit, SPD Swiss Precision Diagnostics GmbH
2. World’s # 1 selling the
and in home pregnancy and fertility testing. Based on international sales in nearly 20 countries compiled using independent market research data
3. Value share within ovulation and pregnancy tests combined, based on the independent market measurement data in 12 countries in Europe, NA and Asia, compiled using independent market research data
4. 97% agreement of weeks results when compared with later ultrasound dating scan. Based on data from 187 women, across two studies with women from the UK (2008/2009) and US (2010/2011)
5. Awareness tracker: 1000 women per market, 18-45 y/o, able to bear children, Online methodology (except Mexico), base
and awareness results on total sample
6. From 2011 US Consumer Usage & Attitude Research. 445 Home pregnancy users were interviewed. Estimated
7. Survey by SPD Careline (2008)
8. Source Swiss Precision Diagnostics GmbH Careline Survey (2008)
9. Source: Ipsos Usage and Attitude studies – Pregnancy and Ovulation in FR GER UK US, 2012
10. 0.4, SKU level at 10% price increase Includes latest 2011 data from SKIM. All data based on price elasticity analyses in WE (mostly DE, UK, IT, ES)
11. Usage & Attitude study (2011), TNS with 4418 women in the UK, USA, France & Germany
12. Product Concept fit US study (2008), 115 women, 18-45 years old. “Not worth paying that much extra – 2%”, tested at a price of 14.99 USD for 1cnt (vs traditional digital pregnancy test at 13.49 for 2 cnts)
13. Ipsos, U&A study 2011, 853 consumers in UK, US
14. Usage & Attitude study (2011), TNS with 576 women in the France & Germany (pharmacy markets)
15. Q: If this test was recommended to you by a pharmacist, how satisfied would you feel about this recommendation (A: top 2 ‘very satisfied’; ‘satisfied’) Johnson, S., Cushion, M., Bond, S., Godbert, S. and Pike, J. Comparison of analytical sensitivity and women’s interpretation of home pregnancy tests. Clin Chem Lab Med XXXXXXXXXXePub ahead of print. http:
16. Aztec Australia and New Zealand Grocery and Pharmacy Retail Scan Data, 2015
17. Survey by HealthOne and P&G Australia and New Zealand Pty Ltd, 2015
MKG701 MARKETING MANAGEMENT Task 3