Marketing Decision Analysis Mini-case Description
The CMO of electronics retailer Dick Smith has commissioned a marketing study to analyse its performance and identify opportunities for growth. Your marketing consultancy firm has been given this project and you have been assigned the task of analysing the data and developing recommendations to be presented to the CMO of Dick Smith.
Dick Smith is one of the leading electronics retailers in Australia operating over 300 stores. In the recent years, increased competition has reduced its profitability and the retailer is working on a major restructuring plan aimed at increasing its market share. As a first step towards restructuring, this study has been commissioned to provide insights about Dick Smith's customers, their attitudes and their spending habits. Two other retailers - JB Hi Fi and The Good Guys have been identified as the major competitors to Dick Smith.
For this study, a survey was sent to 500 randomly selected consumers in Melbourne metro area asking about their electronics purchases in Dick Smith and its two major competitors, in the past one year. Besides their spending habits, the survey also measured their perception of Dick Smith and its competitors in three main store attributes - price level, service quality and range of products carried. These three factors were identified as the most important determinants of consumers' electronic goods purchases. The responses were collected on a 5 point scale for the following survey questions.
1. On a scale of 1(very unattractive) to 5 (very attractive), how attractive is the price charged by each of the three electronics retailers.
2. On a scale of 1(very bad) to 5 (very good), how would rate the in-store and post purchase service provided at each of the three electronics retailers.
3. On a scale of 1(very bad) to 5 (very good), how would rate the product variety (products and the brands) carried by each of the three electronics retailers.
Out of 500 survey questionnaires, 322 responses were obtained at an astounding response rate of 64%. The data from the survey are given in the case 1 excel file in Moodle.
Case Tasks:
1) Analyse the market position of Dick Smith relative to its competitors.
2) Identify the drivers of Dick Smiths' performance relative to its competitors.
3) Analyse your findings and identify opportunities for increasing Dick Smith's market share.
4) Develop recommendations for Dick Smith using your findings from the market share analysis and attitudinal survey.
Attachment:- Assignment Files.rar