INTERNET EXERCISES

Chapter 5: Marketing Strategy and the Marketing Plan

Exercise 1 – Marketing Strategy
Exercise 2 – Strategic Thinking on a Small Scale

Exercise 1 – Marketing Strategy

Vignette: Air Canada’s bold new product strategy, having a family of low-cost, stand-alone brands to serve different target groups, may revolutionize the airline industry—or it may fail.

Featured URL: www.aircanada.com

Strategic Innovation Can Turn a Business Around
In order to make the company profitable, Air Canada’s new CEO, Robert Milton, has made several major strategic changes to the company’s marketing plans since he was hired. The main service, Air Canada, remains the flagship brand, but the rest of the company has been broken up into a family of low-cost, stand-alone brands: Tango is a no-frills domestic operator; ZIP will take on WestJet in Western Canada; Jetz is a charter service for corporate clients and pro athletes; Jazz is the new name for all the former feeder services. So far, this change in product strategy has worked, resulting in Air Canada being one of the few big carriers in the world to make money in 2002. However, if it is too successful and causes a key competitor, such as WestJet, to fail, the Canadian government might take action to change the company’s approach.

Activity

1. Tour the “About Air Canada” section of the featured Web site. Look in particular at recent executive management presentations made by Robert Milton, Air Canada’s CEO. The textbook’s definition of corporate strategy is that it is “the overall purpose and direction of the organization that is established in light of the challenges and opportunities found in the environment, as well as available organizational resources.” In his recent speeches, what has Milton indicated are (a) the “purpose and direction” of Air Canada, (b) the “challenges and opportunities” it is facing, and (c) its “available organizational resources”?
   

2. In his recent speeches, what does Milton indicate is Air Canada’s overall marketing strategy, i.e. its unique long-run competitive position in the market?
   

3. In the “Air Canada Family” section of the Web site, look at the information provided about the Tango, ZIP, Jetz and Jazz brands. Determine the marketing mix for each of these brands. Note the branding differences between them, with some using the Air Canada name and some not.

Resources

Corporate strategy statements available on the Internet:

BC Liquor Stores: this site includes this company’s complete corporate strategy document for 2003–2006
Delta Electronics Inc.: a U.S.-based international supplier to the telecom and datacom industries
Tecan: a U.S.-based multi-national firm involved in life sciences supply and research – look under “Our Group”

Marketing strategy documents and examples available on the internet:

Newfoundland and Labrador: this document is this province’s tourism marketing strategy review, which was prepared by consultants in November 2002
NimbleStrategies LLC: a U.S. company that helps businesses develop their marketing strategies – this site outlines their approach and provides case studies on the clients they have worked with

Exercise 2 – Strategic Thinking on a Small Scale

The Need for Strategic Thinking by Small Businesses is Being Met by Specialized Consultants
Small businesses across North America recognize that they need to figure out their corporate and marketing strategies, but often don’t know where to begin. To meet this need, another type of small business is emerging: small business consultants that offer help in developing basic strategies and writing marketing plans. LSL Marketing Consultants (www.lslmarketing.com) is located in Edmonton, Alberta and specializes in writing marketing plans and providing ongoing marketing support. Advanced Marketing Consultants, Inc. (www.marketingprinciples.com) is located in Nichols Hills, Oklahoma and claims to be “America’s Small Business Marketing Resource”™ offering “marketing strategies, software, and services for growing businesses.”

Activity

1. Visit the featured Web sites for Advanced Marketing Consultants and LSL Marketing. Note the number of different services and tools they provide for their clients. What type of marketing objective(s) do they appear to have for their own businesses: retrenchment, status quo, or growth? Support your decision with examples.
   

2. Describe the marketing mixes employed by each of these consultants. In terms of distribution, how important is the Internet as a means of distributing products and services to each of these firms?
   

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