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Digital Marketing Plan of Polaroid Corporation - Case Study Example

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The paper "Digital Marketing Plan of Polaroid Corporation" is a good example of a marketing case study. Due to the launch of new technologically-advanced digital camera products such as the social magic and Polaroid cube cameras by Polaroid Corporation, the paper presents a digital marketing strategy for the company for a period of 9 months following a contextual analysis of the company’s financial background…
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Digital Marketing Plan of Polaroid Corporation Name Institution Course Instructor Date Table of Contents Table of Contents 2 Executive summary 4 Introduction 5 Purpose 5 Context analysis 6 PESTEL analysis 6 Competition analysis 7 Consumer analysis 8 SWOT analysis 8 Context analysis summary 9 Table 1: TWOS analysis 10 Objectives 12 Digital Strategy 13 Market segmentation 15 Market positioning and differentiation 16 The marketing mix 17 Promotion 17 Product 18 Implementation plan 19 Control and measurement 19 Conclusion 20 References 22 Appendices 24 Diagram 1: Polaroid’s SWOT analysis 24 Diagram 2: Polaroid’s Ansoff’s matrix 25 Diagram 3: Polaroid’s BCG matrix 25 Context analysis summary 26 Executive summary Due to the launch of new technologically-advanced digital camera products such as the socialmatic and Polaroid cube cameras by Polaroid Corporation, the paper presents a digital marketing strategy for the company for a period of 9 months following a contextual analysis of the company’s financial background, current marketing strategy and consumer behavior. As such it details the company’s digital strategy (market segmentation, targeting and positioning), marketing mix strategies, and implementation plan. It finalizes with appropriate control measures to determine the productivity of the plan. Digital Marketing Plan of Polaroid Corporation Introduction Polaroid Corporation is an American-based company specialized in the production of globally consumable eyewear and electronic devices. Edwin H. Land founded the company on its flagship product of instant film cameras in 1937 (Fearis 1995, p.4). The company strategically marketed the instant film cameras until 2008 when it switched to the production of digital cameras. Although in 2009 the company ventured back into the production of instant cameras at a low scale, up to date the company’s increasing camera market leadership and world recognition comes from the intensive investment in digital electronic products such as smart watches. As such, to attract new customers, the company in 2014 launched technologically advanced cameras such as the socialmatic camera (android-powered smart camera which prints photographs instantly) and the Polaroid cube (tiniest digital camera). However, the current camera market is characterized by stiff competition and with constant advances in technology; Polaroid requires a new digital marketing strategy. Purpose This paper seeks to present a digital marketing plan for Polaroid Corporation in the next 12 months. In this regard, the company needs to use the plan to market the socialmatic camera and the Polaroid cube, among other advanced items to retain the existing customers and attract new customers in the United Kingdom (UK) market. Context analysis PESTEL analysis Polaroid is one of the major leading companies in marketing of camera products. However, it is important to assess the surrounding factors that influence the growth of the company in UK (Morgan, Pritchard & Pride 2011, p.41). In the political context, UK is characterized with a strong democratic framework and a stable government; the country thrives on effectively formulated microeconomic policies; it shares good economic relationships with European and commonwealth countries; the government charges low rate of VAT on camera products and finally, the country is vulnerable to terrorist threats and attacks. Economically, the UK takes the second largest market in European Union (EU); UK takes the fourth spot as the country with largest economy in the world; its market merges with other European markets to form a free market trade region; the country thrives on strong channels of product distribution (Shankar et al. 2012, p.303). However, the country struggles from currency depreciation and impacts of budget deficits. Socio-Economically, the UK is characterized with high standards of living, high percentage of aging population, high rate of overseas immigration, and high rate of spending by youths. Technologically, the country takes interest in new technological products; it welcomes new innovative products that promote the sustainability of the environment; the UK consumers buy products that save energy; its government relies on the Waste Electrical and Electronic Equipment Directive Commission (WEEED) to safeguard the public from using hazardous technological products, and finally, the UK government commissioned the Restriction of Hazardous Substances (RoHS) and Packaging Waste commissions to determine the negative effects of using technologically-advanced devices. Finally, in the legal context, the UK government protects the consumers from exploitation by the producers via the UK and EU regulations. Such regulations include the employment law, the competition law and the data protection law (Shankar et al. 2012, p.303). Competition analysis Eastman Kodak is the oldest competitor of Polaroid Corporation. In this regard, the two companies have competes in the same type, make and quality of products. Polaroid has a competitive advantage in the market allowing the company to grow tremendously on a global scale. However, the launch of smart digital cameras by Eastman Kodak, followed by the company’s immense investment in product promotion via digital television and online advertising creates a threat to Polaroid’s UK market share. However, Canon is the current major competitor and threat to Polaroid in the UK market. It is because; Canon enjoys a global recognition in production of quality, affordable, and portable products. It controls the largest market percentage of digital camera products and enjoys a large market share of customer loyalty (Benner 2010, p.50). Moreover, Canon invests strategically in digital marketing via the use of websites’ product publicity, promotional videos on social media platforms such as Facebook, YouTube, Flickr, Instagram and Twitter, among other sites, and constant e-mailing of consumers (Kirtiş & Karahan 2011, p.265). Canon’s digital marketing strategy creates a major threat to Polaroid’s digital marketing of socialmatic and Polaroid cube cameras. Consumer analysis According to recent media market studies, the majority of people that own Polaroid digital camera products are aged between 25 and 54 years. Therefore, the digital marketing of Polaroid needs to focus on the highlighted age bracket. It means that the consumers’ population is not only exposed, but accessible to many digital platforms that are used in marketing (Kavassalis et al. 2003, p.66). Some of the digital platforms deduced from the study include high usage of social media handsets such as Instagram, Twitter, Flickr and Facebook; high usage of online communication channels such as emails and social websites that include YouTube. To effectively attract and retain customers from the highlighted age bracket, Polaroid needs to invest in variable digital marketing platforms (Buse 2010, p.232). Each of Polaroid’s marketing strategy needs to target a particular age bracket within the age group. It is important to note that within the highlighted age group, an approximated 58% of Polaroid consumers are females. This means that the majority of people who fancy Polaroid camera products in the UK are girls and women. So the company needs to invest in a digital marketing strategy such as online advertisements that target girls and women in UK. In addition, the study established that 60% of the consumers are people with stable relationships or rather married. It gives a directive pointer to Polaroid to strategize its digital marketing in a manner that promotes harmony, love and refreshing family moments (Kashani, 1990, p.155). In a nutshell, many consumers of Polaroid camera products are well exposed to technological advancements. SWOT analysis In terms of strengths, the company currently trends with new line of digitally advanced cameras such as the Polaroid socialmatic and Polaroid cube cameras. It relies on structured operations to decrease the company’s debt and maximize its income. Additionally, the company’s global revenue amounts to more than 35% allowing it to expand in the UK market (Baker & Hart 2008, p.55). Finally, the company’s digital camera products are distinctive, affordable and provide instant photographs (see table 1). In the context of weaknesses, the company’s constant behavior of slow adoption of new technological trends damages not only its reputation, but also its brand name. Additionally, by depending entirely on Wal-Mart for distribution of its digital camera products, opens up gaps of competition via alternative channels of distribution. Also, inadequate published information on digital camera industry limits the number of investors thereby limiting the prospective innovations in Polaroid Corporation. Finally, in the context of threats, Polaroid products face stiff competition from Canon’s technologically advanced D-SLR cameras that are affordable, durable and tailored to meet consumer preferences. As such, the competitive companies embrace technology advances constantly and continuously (see diagram 1). Context analysis summary Polaroid Corporations stands at a better chance of retaining current consumers and attracting new customers in the UK market. Based on the recent launch of the technologically advanced digital cameras such as socialmatic and Polaroid cube cameras, the company targets the young and vibrant generation that takes interest in trending digital products. Moreover, such a generation enjoys high freedom of purchase and preference that is made possible by the democratic environment of the UK market (Bharadwaj et al. 2013, p.478). This means that the new products produced by Polaroid are customized to meet the preferences of the targeted age bracket, gender and large consumer population in UK. Therefore, to capitalize on the trending new products, Polaroid needs a digital marketing strategy that targets different age groups and genders. The success of such a strategy relies on various factors that include, first, the political harmony, economic viability, legal regulatory, social sustainability and technological acceptability of digital products in the UK. Second, the strategy relies on the innovative flexibility of the company. So as to target the correct consumers and retain existing ones, the company ought to make a decision of who is in control of the online pages; the spotlight of HR section tends to vary widely with that of marketing or organization communication departments. In most cases, companies fail to post sufficient details concerning what the consumers are looking for. The company should not concentrate on coherent stratagem and ignore foundation of buying its advertising room, which would allow the challengers to aim at its customers. Table 1: TWOS analysis Strengths Globally established company Relative flexibility and adaptation to digital changes High revenue from global markets Innovation of new digital products Operation on strong values and beliefs Weaknesses Damaged image and name of the company Slow switch to new technology Opportunities Emerging new markets in UK Increase in usage of trending digital products Digital marketing accesses many new consumers SO directives New products will retain existing customers and attract new customers Company core beliefs enhances customer loyalty WO directives Digital marketing will capture the new markets in UK It will create a new adventure of buying digital products via the internet Threats High competition from established and emerging digital product companies Terrorism threats Emerging technology advancements in digital products Previous low sales of Polaroid products in UK ST directives The digital marketing strategy will be expensive and hard to implement Strategic digital planning will, however, eliminate stiff competition and restore product sales WT directives Many digital consumers in UK can access the internet making it easier to market products digitally Objectives The main objectives include: to acquire 60,000 new online customers this fiscal year, migrate 35% of the current customers to utilizing online paperless receipt services, and to boost standard order value of online transactions with 40%. These objectives are significant in retaining the existing market share; increment the market share by 6% in the next one year and to raise the profit margin from the current one. The main objectives as stated are to maintain and increase the market share. Polaroid Corporation will ensure that this is possible by acquiring the right people to handle the online pages so as to offer the customers with all the information they may requiring concerning the goods of the company and increase customer interactivity. Introduction of new touchy products into the market has the possibilities of attracting more customers (Chaffey, Smith & Smith 2012, p.25). In 2014 Polaroid Corporation launched two new futuristic products into the market. These products are the Polaroid socialmatic and Polaroid cube. Due to good international performance by Polaroid Corporation, United Kingdom provides the perfect market for introducing the two products especially Polaroid Socialmatic. To ensure that they increase their sales and customer base, Polaroid Corporation ought to launch an affiliate marketing program and enhance SEO. Also, it ought to exhibit advertise sustained by offline media. Since the introduction of digital cameras and one hour processing labs, the demand for instant cameras dwindled. It is therefore justified to set slightly lower prices that will end yielding profits in the long run through the widened customer base (Tripsas 2009, p.445). Stiff competition is also being exhibited from related companies such as Kodak and Canon. With the already saturated market, digital marketing platform will be of great significance to Polaroid. The platform will ensure also the company reaches its different target group thereby increasing their market share percentage (Buse 2010, p.221). Digital Strategy Polaroid Corporation is a company already known for its efficiency in instant photography. Stiff competition from related companies such as Kodak and Canon pushed the original Polaroid Company into bankruptcy. From then Polaroid Corporation has been trying to rejuvenate itself through aggressive marketing options. The conventional modes of marketing were not successful as prospected creating a room for digital marketing. Polaroid released Polaroid socialmatic which so far has received a positive reaction. Polaroid cube was also released to keep up with the emerging technology. These products are expected to increase the market share of Polaroid Corporation in the next one year while at the same time retaining old customers. The newly introduced products are expected to do well in the following twelve months before technology overtake them (Fearis 1995, p.6). Digital marketing strategy for Polaroid Corporation will ensure that the future is already catered for. Digital marketing mostly makes use of web based processes. Application of social media as form of advertising has gained a lot of popularity in the last few years. The number of people using social media sites have increased tremendously and more so young people. In order to thrive in the United Kingdom market, Polaroid Corporation has to use social media to target the young population. According to a recent research study that was recently done, Instagram has a monthly rate of 200 million users. The first option for Polaroid Corporation is to form an Instagram account where they will be able to reach the young population. Photograph captions taken by the newly introduced Polaroid cube. The Polaroid socialmatic device can also be used to take captions and post them on Instagram since it has the mechanisms to do so. Other social sites such as twitter and Facebook will also be used to showcase the variety of products offered by Polaroid Corporation. This can be effectively done through the creation of WebPages on the relevant sites and checking for reactions from followers (Bharadwaj, El Sawy, Pavlou & Venkatraman 2013, p.472). Email marketing is also another form of digital marketing that has proven to be fruitful over time. To ensure that more people are reached, Polaroid will have to adopt the mechanism of sending email blasts at least twice per month. Sending email blasts is a strong online marketing tool that can effectively reach a greater majority of email owners. Creation of a digital Public Relation (PR) is also significant to ensuring that a firm markets itself digitally. Polaroid Corporation can reach out to various media related websites such as Linked In. This particular site is able to write an article about Polaroid Corporation and market it to the thousands of its followers. To finalize on the digital marketing strategy that Polaroid Corporation will adopt creation of YouTube videos and eye catching graphics are of great importance to seal the digital marketing platform. Posting of You Tube videos of Polaroid products will ensure that the market share increases (Bharadwaj, El Sawy, Pavlou & Venkatraman 2013, p.475). This is due to the fact that digital platforms have the ability to reach more around the world compared to the conventional means of marketing. Market segmentation Achieving market segmentation can effectively be done so through satisfying the already existing market. Market segmentation deals with consumers at different levels. This includes existing customers and new customers. In order to retain the existing market as stated in the objectives, Polaroid Corporation need to create a special market that will carter for the already existing consumer population. A different market strategy dedicated to adding new customers should also be handled separately to ensure efficiency (see diagram 2). Polaroid Corporation is centered in the United States but it has retail stores worldwide. Almost 40% percent are done overseas. Consumer market segmentation should help Polaroid Corporation to concentrate on targeting new consumers based on the newly introduced products. Segmentation is vital so as to comprehend the visitors of a website and how to improve their service. Customers who visit a particular website have diverse tastes, wants and stages of adulthood and should be assessed putting into consideration these aspects. The two most significant segmentation techniques include persona segmentation and data-reliant analysis. A survey indicated that most users of Polaroid products are young people ranging to the age of baby boomers. The new devices are expected to generate enough sales due to the lowly fixed prices (Tripsas & Gavetti 2000, p.1150). In targeting, the company will consider consumer profile demographics and the value, both future and present. The online advertisements ought to have various local aspects so as to achieve the greatest return on investment by utilization of the main search engines such as yahoo, Google, and Bing to permit the ads to be displayed to visitors located in UK, in the targeted regions. Over 70% of the company’s potential customers are online; however, the competitors are also aware of this fact. The challenge to Polaroid Corporation is be constantly online and stand out in a very competitive area. Demographic segmentation is very significant in targeting because the potential customers are grouped various variables; customer wants and tastes are mainly based on this category. Market positioning and differentiation Market positioning refers to the building of a united and a consistent online presence across wide range of digital media conduits for a comprehensible and idiosyncratic representation of the company and products it offers. Market positioning makes it easier for consumers to differentiate the products provided by the company. In reference to market positioning, Polaroid Corporation is currently not among the top companies. However, its legacy for producing instant photos cameras is still valid. The new Polaroid socialmatic has the capabilities of producing instant photos while the inbuilt Wi-Fi device enables it share photos online. The element of technology enhancement is more likely to redefine the market position of Polaroid Corporation and catapult it back to the top competitors (Kashani 1990, p.152). It develops responsiveness, interest, and sales. The company will utilize the Web 2.0 which allows feedback and the social media marketing. The internet gives the brand an opportunity to keep consumers by creation of fantastic marketing chances. It will assist the Polaroid Corporation achieve its maximum potential. The marketing mix Polaroid Corporation will ensure it achieves the main objectives by acquiring the right people to handle the online pages so as to offer the customers with all the information they may requiring concerning the goods of the company and increase customer interactivity. Customer interactivity ensures that all the customers enquiries and needs are well responded to; it prevents the competitors from targeting its customers. Moreover, the company will utilize an open conversational web so as to maintain constant touch with the both existing and prospect customers. Additionally, the company will utilize demographic segmentation which is very significant in targeting because the potential customers are grouped various variables; customer wants and tastes are mainly based on this category. To ensure that they increase their sales and customer base, Polaroid Corporation ought to launch an affiliate marketing program and enhance Search Engine Optimization. Promotion Promotion is one of the important features that a company can employ to increase the current customers. With a well created digital PR, Polaroid Corporation will be able to promote itself among the top organizations. Other web based sources of promotion include Instagram, Facebook, twitter and You Tube. Emails will also be sent to users to ensure that a wide audience is covered. Product Polaroid socialmatic has GPS, Wi-Fi and Bluetooth coupled together with the touch screen feature of the camera. The product has stereo speakers and an internal memory of 4 gigabytes. The device also has socialmatic instant filters not forgetting the 14MP front camera and 2MP rear camera. All these enhanced features enables the device to be able to produce instant photos while at the same time share them on social sites. This futuristic product therefore aims will be significant for frequent users of social media. Distribution In the United States, Polaroid Corporation has a wholesale distribution system that ensures cameras and other products are delivered to consumers. Customers will be able to purchase goods online and delivered to their locations. Large retail companies such as Target and Walmart are in convenient locations around the country where consumers can easily access Polaroid products. UK has one of the best distributions systems in the world and this will ensure success in the market. Polaroid Corporation will distribute its products through their eBay outlet and their own website where people can place orders. Polaroid aims to maximize their sales on the international scene to shrug off competition (Lee & Carter 2011, p.2). Implementation plan The digital marketing plan is expected to start on 20th January 2015 to 3rd September 2015. An estimate of UK pounds 450,000 has been set aside for the plan. The funds were obtained from company savings and extensions funds. The products have already been released in the market but this plan forecasts how well these products will do when introduced in the UK market. The progress will assessed after every two months and the total projected cost is 450,000 UK pounds. Control and measurement Social media sites provide an advantage in terms of advertisement in that one can follow the progress of the activity (Kirtiş & Karahan 2011, p.262). For instance, measurement for success on Instagram, Facebook and Twitter will be measured through comments posted and the number of likes. Progress on YouTube will be measured based on the number of views while digital P.R will be successfully evaluated through the number of Corporations contacting the company. Email replies will also indicate a positive progress. So as to determine the success of the digital marketing plans, various aspects ought to be measured. The Polaroid Corporation will determine the increase in the number on online followers on Facebook and Twitter. Also, it will analyze purchases, increment in product awareness, and communication. Google analysis is one of the major tools that will be utilized. When a visitors visit the company’s page with Google tracking codes, the code is implemented and picks data concerning the visitors, browser, and computer details. The codes are able to determine whether a new is or a common guest. Also, the company will utilize sentiment analysis tools which also refer to opinion mining. It includes assessing beyond the number of comments, shares or likes but comprehending how people react to various issues. At times figures may provide false sense of hope but sentiment analysis mines deeper. It involves opinions, approval ranking, replies, and feelings. By utilizing a combination of tools, the company will begin actively to listen to customers and recognize the messages and issues that drive to the desired actions and preferred outcomes. What do want to measure, tools: Google analysis to analyze purchases, social media, sentiment analysis tools- increase in awareness positivity, communication, Conclusion The paper presented a digital marketing plan for Polaroid Corporation in the next 12 months. Majority of people in UK use digital technology and the digital marketing plan will be of great significance to the company. There are various recommendations for attaining the plans objectives. The company will acquire the right people to handle the online pages so as to offer the customers with all the information they may requiring concerning the goods of the company and increase customer interactivity. Customer interactivity ensures that all the customers enquiries and needs are well responded to; it prevents the competitors from targeting its customers. Also, the company will utilize an open conversational web so as to maintain constant touch with the both existing and prospect customers. As well, the company will utilize demographic segmentation which is very significant in targeting because the potential customers are grouped various variables; customer wants and tastes are mainly based on this category. References Baker, MJ & Hart, SJ 2008, The marketing book, Elsevier, Burlington, MA. Benner, MJ 2010, ‘Securities analysts and incumbent response to radical technological change: Evidence from digital photography and internet telephony,’ Organization Science, vol. 21, no. 1, pp. 42-62. Bharadwaj, A, El Sawy, OA, Pavlou, PA & Venkatraman, N 2013, ‘Digital business strategy: toward a next generation of insights,’ MIS Quarterly, vol. 37, no. 2, pp. 471-482. Buse, P 2010, ‘Polaroid into digital: technology, cultural form, and the social practices of snapshot photography,’ Continuum: Journal of Media & Cultural Studies, vol. 24, no. 2, pp. 215-230. Chaffey, D, Smith, PR & Smith, PR 2012, eMarketing eXcellence: Planning and optimizing your digital marketing, Routledge, New York, NY. Fearis, P 1995, ‘The Polaroid experience: countdown to market,’ World Class Design to Manufacture, vol. 2, no. 4, pp. 4-10. Kashani, K 1990, ‘Why does global marketing work—or not work?’ European Management Journal, vol. 8, no. 2, pp. 150-155. Kavassalis, P, Spyropoulou, N, Drossos, D, Mitrokostas, E, Gikas, G & Hatzistamatiou, A 2003, ‘Mobile permission marketing: framing the market inquiry,’ International Journal of Electronic Commerce, vol. 8, no. 1, pp. 55-79. Kirtiş, AK & Karahan, F 2011, ‘To be or not to be in Social Media arena as the most cost-efficient marketing strategy after the global recession,’ Procedia-Social and Behavioral Sciences, vol. 24, pp. 260-268. Lee, K & Carter, S 2011, ‘Global marketing management,’ Strategic Direction, vol. 27, no. 1, pp. 1-5. Morgan, N, Pritchard A & Pride, R 2011, Destination brands: Managing place reputation, Routledge, New York, NY. Shankar, V, Carpenter, GS, Farley, J & Hamilton, BA 2012, Handbook of marketing strategy, Edward Elgar Publishing, Northampton, MA. Tripsas, M 2009, ‘Technology, identity, and inertia through the lens of “The Digital Photography Company,” Organization Science, vol. 20, no. 2, pp. 441-460. Tripsas, M & Gavetti, G 2000, ‘Capabilities, cognition, and inertia: Evidence from digital imaging,’ Strategic management journal, vol. 21, no. 10, pp. 1147-1161. Urban, G 2003, Digital marketing strategy: text and cases, Prentice-Hall, Inc, Upper River Saddle, NJ. Appendices Diagram 1: Polaroid’s SWOT analysis Diagram 2: Polaroid’s Ansoff’s matrix Diagram 3: Polaroid’s BCG matrix Context analysis summary Polaroid Corporations stands at a better chance of retaining current consumers and attracting new customers in the UK market. Based on the recent launch of the technologically advanced digital cameras such as socialmatic and Polaroid cube cameras, the company targets the young and vibrant generation that takes interest in trending digital products. Moreover, such a generation enjoys high freedom of purchase and preference that is made possible by the democratic environment of the UK market (Bharadwaj et al. 2013, p.478). This means that the new products produced by Polaroid are customized to meet the preferences of the targeted age bracket, gender and large consumer population in UK. Therefore, to capitalize on the trending new products, Polaroid needs a digital marketing strategy that targets different age groups and genders. The success of such a strategy relies on various factors that include, first, the political harmony, economic viability, legal regulatory, social sustainability and technological acceptability of digital products in the UK. Second, the strategy relies on the innovative flexibility of the company. So as to target the correct consumers and retain existing ones, the company ought to make appropriate decision of who is in control of the online pages; the spotlight of HR section tends to vary widely with that of marketing or organization communication departments. In most cases, companies fail to post sufficient details concerning what the consumers are looking for. The company should not concentrate on coherent stratagem and ignore foundation of buying its advertising room, which would allow the challengers to aim at its customers. Read More
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