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Strategic Marketing Management(Mkt 548) Question Paper
Strategic Marketing Management(Mkt 548)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
TIME: 3 HOURS
INSTRUCTIONS:
Answer Question ONE and any Other THREE Questions
Question One
Read the case study and answer the Questions that follows.
Potbellys Sandwich Line
Want an inexpensive sandwich served in funny and funky place by friendly young people? Lots of people do, including celebrities in the countries.
Infact Potbelly sandwich works was ranked as one of the top fastest growing chains in the restaurant industry.
Chains are you have never eaten at a potbelly, but you probably will in future. Under the leadership of Kirk Patrick, Chairman and CEO Potbelly is expanding rapidly. Although Potbelly has many sandwich shop rivals and competition in the fierce quick serve segment of the restaurant industry, Potbelly has more than held its own. Billed as a unique and quirky sandwich joint it has a unique appeal. Potbelly`s core strategy elements include product, place promotion and price.
Product
According to Kirk Patrick "Anyone can sell a sandwich you need to sell and experience" industry observes point several aspects of the Potbelly experience that make it first choice for young professionals on a quick lunch break. First is the menu, which features made to order toasted sandwiches, soups,
homemade desserts, malts, shakes, and yoghurt smoothies. Toasting is part of what makes Potbellies sandwiches distinctive. Quality ingredients including, freshly baked Italian subroll and freshly suied meats and cheese contribute to superior value.
Friendly service and an upbeat atmosphere live music, antique fixtures, real books for customers to read and borrow, and vintage memorabilia create a homey environment for customers. The idea behind Potbelly is simple. Superior value funfilled atmosphere, warm, comfy décor and quick, friendly
serve.
Place
Potbelly stores average 2,200 square feet but can top 4,000 square feet. Most units have indoor seating more than 50 and outside seating during the warmer months. Geographic locations are selected carefully. Kirk Patrick looks for Towns not saturated with sandwich chains and have an urban/suburban density of core customers. Young professionals less than 35 customers. Young professionals less than 35 years old. Potbelly lies on high repeat business. All units are corporate owned and operated.
Promotion
Historically Potbelly has not had an advertising budget. Promotions are key to events like openings and national holidays on these days potbelly runs promotion offers reduced price for sandwiches. Diners also randomly receive meals other event promotion raise money for local charities such as food banks, community based reading and music appreciation programs.
Price
Potbelly sandwiches sell at Kshs 300; Potbellys Ice cream bars made of caramel and chocolate sell at Ksh 150, white homemade chocolate chip or sugar cookies go for only Ksh 100 pricing is an integral part of the value Potbelly offers customers and can be summed up as just good food at good prices".
Considered separately as one of Potbelly`s marketing strategy elements may not seem overly powerful as a competitive weapon, but they are significant competitive threat to national regional and local operators Brands like lunas; Julie`s, Jummy John`s, and Deli are wary that Potbelly will become a major national competition. The Potbelly experience appears to be difficult to duplicate for example Lunas` may have same food quality but not similar atmosphere Deli may have, a hangout ambienie down but not the food! Julies` is vulnerable since neither the food nor the warm and comfy fun store environment.
Yet Potbelly has tough road ahead. It requires management to maintain the superior performance of current units while creating new Potbelly units in new markets. Each Potbelly units in new markets. Each Potbelly is special in terms of location decor and staff. The unit must be tailored to its neighbourhood and community. Attentive enthusiastic workers must be found. Food quatity and a fun atmosphere must become an integral part of the store culture. Not an easy task.!
a) Identify and describe Potbelly`s strategy in terms of product (present or
new) and market (present or new). (15marks)
b) How would you describe Potbelly`s positioning strategy. (10marks)
c) What types of environmental opportunities and threats do you see in Potbelly`s external environment? How might they affect Potbelly`s current strategy. (15marks)
Question Two
Explain the Ansuff growth for product/market matrix can be used to
Implement a growth strategy. (20marks)
Question Three
The BCG matrix is one of the mode used to manage of firms product portifolio
a) In reference of the BCG model identify the strategic objectives to pursue for every category of products in the model.
b) Identify and briefly explain the criteria leveled against the BCG model.
c) What are the contribution of model in portfolio?
Question Four
a) Discuss the usefulness of the value chain model towards development of a competitive advantage of an organization. (10marks)
b) "To be truly effective a brand strategy has to develop over time and reflect environmental conditions". Highlight at least FIVE principles to remand during brand development. (10marks)
Question Five
a) You are the sales distribution manager for the company you work in what criteria would you use in choice of channels to carry your products? (10marks)
b) In a competitive market can follow either offensive or defensive strategic what are the principles of offensive pricing? (10marks)
Question Six
In reference to the BCG Matrix highlight the pricing grindlines you will follow in your organization. (20marks)
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