Frito Lay Company: Cracker Jack

Read the case thoroughly. Defin" rel="nofollow">ine the problem in" rel="nofollow">in the case and thin" rel="nofollow">ink of a solution to fixed it. There is no right or wrong answers and try to thin" rel="nofollow">ink outside of the box. Case write-Up: Gradin" rel="nofollow">ing will be based on the quality of organization, clarity of explanations, logic of analysis, thoroughness of analysis, justification of the recommendations, quality of illustrations, practicality of recommendations, and professional format. Papers should not exceed 10 typed double-spaced pages, in" rel="nofollow">includin" rel="nofollow">ing exhibits. Please do not bin" rel="nofollow">ind your reports in" rel="nofollow">in folders. Plain" rel="nofollow">in white paper fastened together with a staple in" rel="nofollow">in the upper left-hand corner is sufficient. How to Perform a Marketin" rel="nofollow">ing Case Analysis A marketin" rel="nofollow">ing case is a description of a busin" rel="nofollow">iness in" rel="nofollow">in which some organization is attemptin" rel="nofollow">ing to create or enhance an exchange relationship with a group of customers. These descriptions are usually both quantitative and verbal. The description is a collection of facts, opin" rel="nofollow">inions, and other bits of data, some of which are more relevant and reliable than others. While the description is most always in" rel="nofollow">incomplete, you must recommend some course of action for the organization. To write a good case analysis, you must first construct a model of the situation (your defin" rel="nofollow">inition of the problem). You construct this model from the relevant facts you fin" rel="nofollow">ind in" rel="nofollow">in the case and from the relationships among those facts that you are able to discern. If you overlook relevant facts and/or fail to recognize some key relationships among the facts, your model will be in" rel="nofollow">inaccurate and the resultin" rel="nofollow">ing analysis flawed. Followin" rel="nofollow">ing are some rules that may help you develop a good workin" rel="nofollow">ing model (i.e., defin" rel="nofollow">ine the problem) of the situation and write an appropriate and compellin" rel="nofollow">ing analysis. RULE #1: KNOW THE CASE FACTS. Read the case, as many times as necessary. Underlin" rel="nofollow">ine, take notes, and do whatever is necessary to register the facts in" rel="nofollow">in your min" rel="nofollow">ind. Actively look for relationships (logical or casual connections) among the facts. This is an active, creative, and effortful process that is essential for producin" rel="nofollow">ing a good model of the case situation. RULE #2: ACTIVELY LOOK FOR CONNECTIONS AMONG THE FACTS. Discernin" rel="nofollow">ing relationships among relevant facts is the key to defin" rel="nofollow">inin" rel="nofollow">ing the problem (constructin" rel="nofollow">ing your model). There are really only two kin" rel="nofollow">inds of marketin" rel="nofollow">ing problems: 1. occurs when a firm has been doin" rel="nofollow">ing somethin" rel="nofollow">ing (tryin" rel="nofollow">ing to sell a new product) and the results are unsatisfactory (nobody buys it); and 2. a firm wants to do somethin" rel="nofollow">ing (in" rel="nofollow">introduce a new product) but is uncertain" rel="nofollow">in about what needs to be done to get satisfactory results. Despite the fact that there are only 2 types of marketin" rel="nofollow">ing problems, they occur in" rel="nofollow">in endless variety and they are usually quite complex. For this reason it is difficult to describe a marketin" rel="nofollow">ing problem with precision. However, if your description or model fits reality too poorly, the course of action you recommend will likely be in" rel="nofollow">inappropriate. RULE #3: DEFINE THE PROBLEM AS PRECISELY AS POSSIBLE. The best way to defin" rel="nofollow">ine a marketin" rel="nofollow">ing problem is in" rel="nofollow">in terms of controllable marketin" rel="nofollow">ing variables that are either: 1. in" rel="nofollow">incorrectly set or adjusted (first type of marketin" rel="nofollow">ing problem), or 2. in" rel="nofollow">inadequately specified (second type of marketin" rel="nofollow">ing problem). Thus, “fallin" rel="nofollow">ing sales” is a poor statement of the problem. “The product fails to satisfy changed customer needs” is better. The ability to make precise and appropriate statements of marketin" rel="nofollow">ing problems is a practiced art, accomplished with hard work and smarts. RULE #3A: DEFINE THE PROBLEM AS PRECISELY AS POSSIBLE IN TERMS OF THE MALADUJUSTMENT OR UNDERSPECIFICATION OF CONTROLLABLE MARKETING PROBLEMS. Why is this a good idea? Because the marketin" rel="nofollow">ing manager takes action by changin" rel="nofollow">ing or specifyin" rel="nofollow">ing one or more controllable marketin" rel="nofollow">ing variables. The manager can do nothin" rel="nofollow">ing else. Thus, your recommendation to the manager must be made in" rel="nofollow">in terms of controllable variables for it to be of actionable value. What are controllable variables? • Marketin" rel="nofollow">ing Objectives • Marketin" rel="nofollow">ing Strategies • Marketin" rel="nofollow">ing Mix and in" rel="nofollow">in a supportin" rel="nofollow">ing role • Marketin" rel="nofollow">ing Information • Marketin" rel="nofollow">ing Organization These variables are manipulated in" rel="nofollow">in such a way that is in" rel="nofollow">intended to adapt successfully to the conditions imposed by a set of uncontrollable variables that in" rel="nofollow">include: • Customers • Competitors • Macro environmental variables (economic, political, legal, social, cultural and technological factors) Together, these sets of controllable and uncontrollable variables provide a checklist for describin" rel="nofollow">ing the firm’s situation and identifyin" rel="nofollow">ing its marketin" rel="nofollow">ing problems. RULE #4: USE THE CONTROLLABLE AND UNCONTROLLABLE MARKETING VARIABLE CATEGORIES TO HELP ORGANIZE YOUR THINKING ABOUT THE SITUATION AND THE MARKETING PROBLEMS. If you have defin" rel="nofollow">ined the marketin" rel="nofollow">ing problem(s) appropriately, the task of proposin" rel="nofollow">ing a course of action is greatly simplified. However, in" rel="nofollow">in all in" rel="nofollow">instances you will probably recognize that several alternatives appear plausible. Do not exclude plausible alternatives from your analysis so as too severely limit your choice. In the end, of course, you must pick a sin" rel="nofollow">ingle alternative course of action. In doin" rel="nofollow">ing this you must present a rationale that demonstrates convin" rel="nofollow">incin" rel="nofollow">ingly why the alternative you selected is the superior one. This rationale may in" rel="nofollow">involve economics (more profit), risk (higher probability of success or less fin" rel="nofollow">inancial exposure), strategic considerations (more compatible with the firm’s image or less vulnerable to competitive reaction) or, as is usually the case, some combin" rel="nofollow">ination of all of these. RULE #5: ATTEMPT TO RECOGNIZE ALL PLAUSIBLE ALTERNATIVE SOLUTIONS. RULE #6: CHOOSE THE ONE ALTERNATIVE YOU BELIEVE IS BEST AND JUSTIFY YOUR CHOICE. FORMAT FOR WRITTEN CASE ANALYSIS Sections of the Analysis (in" rel="nofollow">in order): • Executive Summary • Problem Defin" rel="nofollow">inition • Analysis of Alternatives • Plan Development Executive Summary This section should defin" rel="nofollow">ine the problem, state the chosen alternative, and briefly explain" rel="nofollow">in why the chosen alternative is the superior alternative. The Executive Summary should not contain" rel="nofollow">in background material from the case. Write the Executive Summary for your audience – the executives of the company. They are, of course, well-in" rel="nofollow">informed about the situation. This section will usually be only 2 or 3 paragraphs in" rel="nofollow">in length. Problem Statement and Statement of Alternatives Adequately and appropriately defin" rel="nofollow">inin" rel="nofollow">ing the problem is the key to the case analysis. A problem defin" rel="nofollow">inition should be framed as a decision to be made. Therefore, “sales have fallen off” is not a properly defin" rel="nofollow">ined problem. The problem should not be defin" rel="nofollow">ined so narrowly that good alternative courses of action are not considered. Therefore, “should we in" rel="nofollow">increase advertisin" rel="nofollow">ing” is too narrowly defin" rel="nofollow">ined to result in" rel="nofollow">in a thoughtfully considered decision. The problem defin" rel="nofollow">inition should contain" rel="nofollow">in three key elements: decision objectives; success measures; and decision constrain" rel="nofollow">ints. For example: how can we main" rel="nofollow">intain" rel="nofollow">in our quality brand image (objective); and regain" rel="nofollow">in our lost market share (success measure); given limited funds for advertisin" rel="nofollow">ing and sales promotion (constrain" rel="nofollow">int)? This section should identify the alternative courses of action to be in" rel="nofollow">investigated. This section should also list the major dimensions, or states of nature in" rel="nofollow">in a decision theory framework, of the decision (i.e., those factors on which the choice of an alternative will largely depend). These states of nature are uncertain" rel="nofollow">in and, for the most part, are uncontrollable: competitor actions, consumer needs and response, and turns in" rel="nofollow">in the economy are examples. The potential payoff of any alternative depends on the “true” state of nature. This section will most likely be about 1 page in" rel="nofollow">in length. Analysis of Alternatives This section may contain" rel="nofollow">in qualitative as well as quantitative analyses. In a decision theory sense, this section seeks to calculate the expected payoff of each alternative. Therefore, you must sift through the case in" rel="nofollow">information to fin" rel="nofollow">ind those pieces of in" rel="nofollow">information relevant to the decision to be made. Here, you are really constructin" rel="nofollow">ing the states of nature, estimatin" rel="nofollow">ing probabilities of the state of nature, determin" rel="nofollow">inin" rel="nofollow">ing cell payoffs, and calculatin" rel="nofollow">ing the expected values of each alternative. It is proper to place actual calculation, exhibits, etc. in" rel="nofollow">in the appendices and simply refer to your fin" rel="nofollow">indin" rel="nofollow">ings in" rel="nofollow">in the body of the paper. This section will ultimately identify the chosen alternative strategy or course of action. This section will normally be 2 to 3 pages in" rel="nofollow">in length. Plan Development Once the alternative strategy is selected, you must develop a plan for its implementation. Basically, this in" rel="nofollow">involves specifyin" rel="nofollow">ing the marketin" rel="nofollow">ing mix to be employed. This section will be 1 to 2 pages in" rel="nofollow">in length. Guidelin" rel="nofollow">ines for Marketin" rel="nofollow">ing Case Analysis This is meant to be a guide for analyzin" rel="nofollow">ing case situations and preparin" rel="nofollow">ing a written report of your analysis and conclusions. It is not meant to impose rigid standards for your assignments but provide help to you in" rel="nofollow">in organizin" rel="nofollow">ing them. Function of a Case: Cases serve at least four functions. It is important to understand these in" rel="nofollow">in order to assess their value to you in" rel="nofollow">in studyin" rel="nofollow">ing Marketin" rel="nofollow">ing. In general, cases will: • Build familiarity with management, company, and in" rel="nofollow">industry problems. • Develop confidence in" rel="nofollow">in your ability to thin" rel="nofollow">ink like a manager. • Develop a growin" rel="nofollow">ing understandin" rel="nofollow">ing of the relationships between marketin" rel="nofollow">ing management problems and the other functional areas of the busin" rel="nofollow">iness. • Build additional skills in" rel="nofollow">in written and oral communication. What is a case? A case is a statement of facts, opin" rel="nofollow">inions, and judgments that are more or less relevant to an actual busin" rel="nofollow">iness situation in" rel="nofollow">in which a problem exists and a decision must be made. A problem exists when busin" rel="nofollow">iness facts, opin" rel="nofollow">inions, and judgments are in" rel="nofollow">in conflict. Most cases are real busin" rel="nofollow">iness situations, that is they are based upon problems and events that actually took place, although they may be disguised as to the actual names of the people companies and locations in" rel="nofollow">in which they took place. Analysis of Cases: The followin" rel="nofollow">ing are a few general comments relevant to the analysis of a case: • Read the case carefully and distin" rel="nofollow">inguish between what are the facts of the case and what are the judgments and opin" rel="nofollow">inions of the people in" rel="nofollow">involved in" rel="nofollow">in the case. You cannot change the facts of the case, but you can read between the lin" rel="nofollow">ines and question the judgments and opin" rel="nofollow">inions. Sometimes what is stated as fact is merely an opin" rel="nofollow">inion. • Your objective is to learn through exploration, discussion and argument in" rel="nofollow">in as logical a framework as possible. There are no clear-cut solutions to be found. There is no correct answer! The actions of the managers described in" rel="nofollow">in the case may or may not illustrate the proper handlin" rel="nofollow">ing of marketin" rel="nofollow">ing problems, good analysis of relevant data, etc. You must decide what is good and what is bad. You must support your decisions with facts and logical argument based on sound marketin" rel="nofollow">ing and fin" rel="nofollow">inancial reasonin" rel="nofollow">ing , where applicable. • Often you will want further in" rel="nofollow">information or data in" rel="nofollow">in evaluatin" rel="nofollow">ing a case situation. This lack of complete in" rel="nofollow">information mirrors the real life situation that the managers in" rel="nofollow">in the case have faced. One of the key thin" rel="nofollow">ings that a marketer must learn is how to operate as effectively as possible given less than perfect in" rel="nofollow">information and conditions. One of the decisions that you may make is that further research to accumulate more in" rel="nofollow">information is needed to address your problem. Now you must ask the question of whether the expense of gatherin" rel="nofollow">ing that in" rel="nofollow">information will be worth the additional expenditure of time and resources or will you be better off makin" rel="nofollow">ing a decision based on the in" rel="nofollow">information that you have. Gatherin" rel="nofollow">ing more in" rel="nofollow">information is acceptable under the proper circumstances but is never acceptable as an excuse to avoid grapplin" rel="nofollow">ing with the problem or adequately analyzin" rel="nofollow">ing the in" rel="nofollow">information that you already have. When you do recommend further primary research, be sure to specify the in" rel="nofollow">information that you desire, how it can be obtain" rel="nofollow">ined, and how it will improve your decision makin" rel="nofollow">ing. • Be familiar with all of the material that you are given in" rel="nofollow">in the case. Readin" rel="nofollow">ing the case more than one time will generally help you to digest the details more thoroughly. Be prepared to make reasonable in" rel="nofollow">inferences from the in" rel="nofollow">information contain" rel="nofollow">ined in" rel="nofollow">in the case. • By all means discuss the cases outside of class to get feedback on your ideas from others in" rel="nofollow">in the class. Remember that we are tryin" rel="nofollow">ing to learn this material by actively presentin" rel="nofollow">ing in" rel="nofollow">interpretations of the situation and evaluatin" rel="nofollow">ing more than one possible solution. Discussion of Cases: If the case is to be discussed in" rel="nofollow">in class, be prepared to present and defend your thin" rel="nofollow">inkin" rel="nofollow">ing. If a conflictin" rel="nofollow">ing viewpoin" rel="nofollow">int to yours is bein" rel="nofollow">ing presented by other students question them and reconcile their thin" rel="nofollow">inkin" rel="nofollow">ing with your own. Do not accept another viewpoin" rel="nofollow">int as bein" rel="nofollow">ing correct because it is the one bein" rel="nofollow">ing presented or the one that has gain" rel="nofollow">ined popular support unless you have been convin" rel="nofollow">inced of the logic behin" rel="nofollow">ind it. Consideration of alternative issues will only help all participants in" rel="nofollow">in the case discussion reach a sensible consensus conclusion of a course of action. Discussion of issues should be conducted in" rel="nofollow">in a civil, non confrontational manner. Treat other discussants with the same respect that you would like to receive. You are encouraged to disagree, but to do so in" rel="nofollow">in an appropriate manner.