Maison Bouygues Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

EVALUATION OF THE ALTERNATIVES

Revised the Advertisement Budget for marketing and Sales Department

According to the results of customers attracted that later on became the real customers of MB through purchase of house, Maison Bouygues should restructure the current advertisement budget for marketing and sales department. However, the current advertisement budget has proposed to spend 5 million French francs for advertisement through national televisions and revised budget should maintain this spending. Meanwhile, marketing budget for catalogues should be reduced because the process catalogue cost 1 million French francs, instead of that online catalogue service should be used that would cost less and would help to reach more people. On the other hand, marketing budget for technical fees did not attract any customer, therefore, this budget should completely be removed and resources should be used elsewhere. Meanwhile, the advertisement through local magazines has proved to be very much expensive because it uses more fund for per customer attracted, therefore, budget for advertisement through local magazines should be reduced to only 10% in order to keep its presence in the market.

Furthermore, another most expensive medium of advertisement is free distribution of news papers advertisement via the local news papers; hence, its budget should also be reduced by 50% in order to cut advertisement cost. Additionally, advertisement through celebrations in new homes should be decreased by 40% and this marketing budget for participation in commercial and trade exhibition should be increased by 30%. Moreover, the marketing budget for agent’s fees should be increased by 20% because it incurs low funds in order to attract new customers.

Use of Social Media as Direct Marketing Media

Maison Bouygues should use alternative means of advertisement and marketing, which are cheaper in comparison with current means of advertisement being used. Additionally, marketing through social media sites such as facebook.com and linkedin.com should be used as direct marketing because this online advertisement media targets the potential customers based on the information and data that they have shared on media sites and will help MB to target potential customers only, meanwhile, this will also help in cutting the marketing cost.

Highlight Cost Saving from Purchasing MB’s House

Additionally, Gallet should include such elements in advertisements that highlight the unique offerings that MB has for its customers and specifically in an economic recession period the monitory point, which differentiates MB’s housing from its competitors. It should also be highlighted such as the service for the search of land for its customers is a valuable service that every customers needs before he/she can get build his/her house.

ACTION PLAN

However, the best alternative would be to revise the current advertisement budget because in comparison with social media as an alternative, existing budget would readily be available for implementation. Meanwhile, advertisement through social media would require marketing management to become familiar with the trends and methodology used for marketing on social media website. Furthermore, in order to implement this alternative, Gallet should first prepare a detailed analysis and revise advertisement budget that should be prepared preferably on an excel spreadsheet, which should be used for the re-allocation of budget and the revised budget should be communicated to all the regions. For the meantime, they should be informed that the importance of advertisement means which are more beneficial for MB in terms of attracting potential customers for recording their interest in MB’s houses..................................

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