Souped up or regular? Olympians or not Harvard Case Solution & Analysis

Souped up or regular? Olympians or not? Case Study Solution

Souped-up Campaign

Pros

• Successful past experience from motorcycle industry, which also happens to be a sport industry.
• Tons of examples.
• Trending advertising technique.

Cons

• High cost, i.e. 2.8 million.
• Uncertainty about loss (past experience)
• No value creation for customers.
• Loss of potential funds.

Souped-up and Olympians Campaign both

Pros

• Free publicity before start.
• Comparatively lower cost.
• Brand Image with Olympic Stars.
• Successful past experience from motorcycle industry, which is also a sport industry.
• Tons of examples.
• Trending advertising technique.

Cons

• Compromise in souped-up advertising, with less pages.
• Campaign cost of 3 million.
• Uncertainty regarding loss incurrence.
• Risk of imitation by Foot, due to publicity.
• Low secrecy.
• Comparatively lower cost.

Absence of value creation for customers.

Quantitative

The quantitative evaluation of alternatives, is determined by calculating the weighted average net costs for Raven from each of the three alternatives, assuming a 50% probability that Foot will conduct souped-up campaigns. On the basis of quantitative evaluation given in Appendix 4; it could be said that the regualr campaign will be more beneficial for the firm in terms of net costs, with a weighted average net cost of -1.75 as compared cost of -2.9 for souped up camapign and -4.2 for a combination of both.

Decision Criteria

• Net cost.
• Time saving.
• Decision Matrix.

Recommendations

On the basis of analysis conducted above; the firm is recommended to opt for the regular campaign as the regular campaign will bring the least negative value to the firm as compared to the remaining two campaigns. The regular campaign would also help in time saving and having lower cost. Although, souped-up campaign would resist the loss of potential market share, but the cost of 2.8 million is in all terms greater than the value it would create, which ultimately paves the way for the regular campaign to be a suitable option to go for. Moreover, signing Olympians would cost 2 million, with a non-monetary impact over the net revenues. Therefore, the firm is recommended to opt the continuity of the current regular advertising campaign.....................................

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Related Case Solutions & Analyses:

Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks Brummer and the bracNet Investment Fighting Malnutrition and Hunger in the Developing World Mercy Corps: Positioning the Organization to Reach New Heights IBM On Demand Community Privatization of Anatolia National Telekom: Note on Valuation of Privatizing Enterprises in Emerging Markets Indraprastha Cold Storage LoneStar Graphite Operations Management The globalization of CEMEX