Name:

Muhammad Ali Fayyaz

Roll No:
M18MBA046
Synopsis:
Principal Of Marketing
Submitted to:
Prof Sammar Rahi

Hailey College Of Banking And Finance

 Case#1
Synopsis Of Target “Expect more and Pay Less”
Introduction Of Case:
In this case We seems That a U.S large retail Brand Company “Target”.This Case disscuss the
Period in 2008 when the Company Suffers a big loss. At the start of Recession the target has
faced a huge decline in his Sale . Company also faces loss and had a huge pressure in Market by
investors.

History Of Case:
“Target “is a huge retail brand .The slogan of company is “Expect more and Pay less”. The
competitor of “Target” is “Wal-Mart”. Who has also a Big Retail Brand Of U.S. Due to the
similarities of Product but still it’s easy to distinguish both as, “Target is about style and
fashion.” While “Wal-Mart is all about low price.”and the “cheap chic” label by Consumer.

Target was generating good revenue with its long standing slogan “Expect More” and investors
are also very happy but in the Period Of 2008 the Economic Recession happens,
unemployment roses and customer began pinching their Cash, which reversed the situation.
Due to image of slightly higher price and better stuff the customers move toward Wal-Mart
whose image is all about low.So that result is Wal-Mart sales rises even six times greater than
“Target”. And Target ones active shareholder Ackman company investment faces 85% loss of
investment and he blamed companies Directors lacked of needed experience which make more
sensitive situation for the “Target”.

Alternatives and Emphasis:

The “Target” CEO Gregg Stainhafle summarized many alternative options to Captured
marketing the target. Company use Single strategic marketing that it emphasis “Pay less” factor
of slogan to attract the consumers also encouraging the “expect more” as well and set the goal
to focus on Wal-Mart. Where no desire results got by the company then the Selective field are
used, Company advertise its products with unique and attractive way adding such word e.g.
“The new car wash” “The new movie night” etc. Company also used Full market coverage and
product specialization way that is ,it start converting its corner stores to grocery stores carrying
90% of food items , including fresh items also , also launched new brand name “up & up.”(30%
lower than comparable brand products).
Resolution
The convert of mini grocery stores contain just about all products of full size grocery stores,
including fresh produce. And the new brand “up & up” initial results showed increase in sales
and sign of life show the profit margin increase from after 18 months struggle of manager and
Steinhafel make Progressive change, and outflow per visits. also increased that, people who buy
from Wal-Mart also suggest to their friends that they Came back and Shopping from from
“Target”.

Question and Answers

Ans. 1: The microenvironment factors that affect the organization are supplier, customer,
competitor and public. Here in this case the affecting factors over the past few years are
customer, public and competitor.
Competitor: Wal-Mart
Customer: As decline began people become more sensitive to spend money because
unemployment raised. They move toward low price rather than fashion and style.
Public: As company investment of 2billion lost about 85% so he blamed company and said the
directors had lack of experience needed, that affect various stakeholders.

Ans. 2: the macro environment factors are cultural environment, political environment,
technological environment, natural environment, economic environment, Demographic
environment. Here the affecting factor is Economic factor. It’s those factors that affect
consumer purchasing power and spending patterns e.g. change in income. As the income
change occur due to inflation and rise in unemployment the company sales start decreasing.
Because people become more responsible about money spending.

As 3:Yes, company “Expect more” imaged about high price and at this time consumer only
desire at low price so by focusing on “Pay Less “ part of the slogan , Target pursue the best
strategy .

Ans. 4: The Company CEO Gregg Stainhafle summarized many alternative options to Captured
marketing the target. Company use Single strategic marketing that it emphasis “Pay less” factor
of slogan to attract the consumers also encouraging the “expect more” as well and set the goal
to focus on Wal-Mart. Where no desire results got by the company then the Selective field are
used, Company advertise its products with unique and attractive

Ans. 5: Reccomendations

 Retail is currently not receives a lot of recommendations, but Target seems to take the
right steps.
 The Target are supplemented by new innovations Target is spending over $7 billion on
over the next three years.
 Target will improve delivery, expanding Supplies and creating a Target Small Grocery
Stores.
Case#2
Synopsis Of “Starbucks”
Introduction of Case
In this Case We seems that Starbucks is coffee house situated in Washington. The case is
about recession period of the Company. Then it happening in reverse that at the end of 2008,
the 20% annual growth dropped to 10% and sales declining at 3% and profit 53% a year
proceeding to a row year more decline occur. It’s because change in economy which lead to
change in customer and change in culture of the Company.

History Of Case:
Howard Schultz The CEO of Star buck’s want to provided gourmet coffees, Express to Later
After transform it “third-place” into a European Style Coffee Houses. In 20 year Schultz grow
up their company to 17000 STAR- in dozens of countries and decided to open further 10000
new Branches in four years to push up to 40000 stores. From 1995 to 2005 the growth rate of
Starbucks was 27 % which is 10% greater than McDonald’s even in its peak. The company made
happy to its investors by 25% annual increases in stock value. But a sudden decline and then
reversed that its sales . In 2008 600 stores close first then more 300. Before recession the
company customer was wealthier, better educated, and more professional, mostly female and
average age o 24-44. Even customers like the culture in star bucks, like to talk with baristas who
greet with customer name and chat while she make coffee drink, lounge on comfy furniture,
enjoying perfect mix music combination. With the time the culture start changing and stores
appealed the traditional customer starts decreasing and we breed customer increases .Baristas
has no time to chat. It’s turned into “Hustle and bustle “because new breed of customer want
good coffee on run. When recession happened decline also reasoned that, it means good coffee
on the run. while the traditional customers visit frequently. Competitor like Mcdonald
Dunkin’Donuts also providing similar products at low price it could be effect on sales of
Starbucks.

Alternatives and Evolution:

When star bucks started tapering off, Schultz stated that, in order to tackle this situation he
decided to Captured the Market and Also to capture the traditional customers back. At first
star bucks reestablish its image to provide the better quality Coffee and Coffee master trainee
program. Also tried to provide free Wi-Fi service. But none of it able to provide better service.
Valuation&Resolution:
In the Period of 2009 Schultz tried to give better Services to increase their growth. Product like
coffee cake, oatmeal, and an egg sandwich. Schultz also outlined three pronged growth. First
prong of Via strategy an intense coffee who Seves in single-pack of $1 each.Starbucks targeted
their Consumers for direct selling for those wgho do not have access in stores. Second prong
also focuses on the grocery business but through ground-flavored coffees. According to NPD 4
out of 5 cups of coffee consumed at home so aiming more directly at the brew it at home. As
75% customer said they will buy flavored product at grocery if star bucks made one so
Starbucks made Natural Fusions in vanilla, caramel, and cinnamon. The 3rd prong is Seattle the
best Brand of purchased by Starback returned bak in 2003. As with via natural fusions and
Seattle Best, star bucks are going after customers who don’t normally buy star buck’s coffee.

The three-pronged strategy will help in returning the growth story of Starbucks even without
opening nine stores a day. Starbucks should also focus to target foreign markets. these tactics
helped and star bucks start re-gaining ground sales and profits increased also.

______ ___________ ThankYou________________________________