Case AnalysisQuick Start

Fall 2014

Start with the Problem

"Should BP implement a buying program this year?"

What is a "buying program?"

What happened last time?

What do I know about buying programs? (aka - affinity programs, rewards cards, loyalty cards, frequent buyer/flier, etc.)

Why do retailers use them?

Why do customers want them?

What kind of people get one and then use it?

What kind of things can go wrong with affinity cards?

Start with the Problem

"Should BP implement a buying program this year?"

Find one - breath life into the case

Oh yea...

"Should BP implement a buying program this year?"

downstairs

in the BMC lobby

where I buy coffee

on the cash register

I got one

but I don't get it stamped

because everyone behind me in line is in a hurry and I have to carry it around in my wallet

and then the cashier has to find the little red stamp

and then I feel like a dork

Stick with the Problem

"Should BP implement a buying program this year?"

If something in the case doesn't seem to have much to do with the answers to the questions you just asked yourself, move that topic to the bottom of your pile.

Look at your own questions again

Think about the management topics behind each question

Reframe the questions into Adv/PR management terminology

Stick with the Problem

"Should BP implement a buying program this year?"

What is a "buying program?" Affinity Card

What happened last time? BP underestimated their buyers

What do I know about buying programs? (aka - affinity programs, rewards cards, loyalty cards, frequent buyer/flier, etc.) Banks & airlines use to prevent competitive switching

Why do retailers use them? Encourage repeat business

Why do customers want them? Get credit for coming back

What kind of people get one and then use it? Price sensitive

What kind of things can go wrong with affinity cards? Lots

Move to other "close" management topics

"Should BP implement a buying program this year?"

Audience

Place

History

Results

Promotion Mix

Trade Area

Industry Segment

Move to other "close" management topics

"Should BP implement a buying program this year?"

Audience b/c we are dealing with buying behavior

Place b/c BP has one location in a hot area of Austin

History b/c BP is an Austin icon, been around a long time

Results b/c we can learn from the past

Promotion Mix b/c "events" is mentioned in the case very often

Trade Area b/c BP is in Austin's downtown 'growth path'

Industry Segment b/c BP survived first wave digital revolution

Move to the "known suspect" management topics

"Should BP implement a buying program this year?"

"Active" reading - ask about each of these as you read

Keep reading the problem!

Move to the "known suspect" management topics

"Should BP implement a buying program this year?"

Circles contain related facts & thoughts

Look for frequently mentioned things

Keep reading the problem!

Look for things that affect buyer behaviors

Move to the "known suspect" management topics

"Should BP implement a buying program this year?"Keep reading the problem!

Move to the "known suspect" management topics

"Should BP implement a buying program this year?"Keep reading the problem!

Think about what you just wrote

Look for connections

Create "rich" CFs(more than one thing going on)

Include negative aspects

Stick with the Problem

"Should BP implement a buying program this year?"

Build a Critical Factor with...

topic cohesion (a clear focal point)

two, maybe three, thoughts going on

a negative dimension is OK

little overlap with another CF topic

Keep reading the Problem

Start with the topic you think is strongest... SMIT

Stick with the Problem

"Should BP implement a buying program this year?"

Critical Factor - "BP Promotional Mix" raw materials:

BP tried 6: press kit, np, radio, email, off-site events & co-op

Long (12 years min.) history of on-site book signing success

BP successful while other independents went out of business

250 book signing events per year is almost every night

Community "group" events in addition to signings

Publishers' co-op ads drive BP's media support for signings

Jeremy "doesn't believe in advertising"

Stick with the Problem

"Should BP implement a buying program this year?"

"BP Promotional Mix" - HEAD: Success Has Blinded BP

BP tried 6: press kit, np, radio, email, off-site events & co-op

Long (at least 12 years) of on-site book signing success

BP successful while other independents went out of business

250 book signing events per year is almost every night

Community "group" events in addition to signings

Publishers' co-op ads drive BP's media support for signings

Jeremy "doesn't believe in advertising"

Stick with the Problem

"Should BP implement a buying program this year?"

(1) Success Has Blinded BP -

BP's promo mix is now "on-site events" only

Very successful

250 signings (variety of topics) equals a wide range of readers

Publishers pay for co-op ads to support signings

BP's media plan dependents on publishers’ money

Stick with the Problem

"Should BP implement a buying program this year?"

(1) Success Blinds BP - BP's promo mix now "book signing" only; successful but one-dimensional; relies on publisher's $ -- risky having media plan dependent on business partner

172 characters

Covers 3 topics: promo mix, success, co-op driven media

Delivers 2 insights: one-dimension promo strategy + driven by outside forces = risky media management

Captures a management quandary

Stick with the Problem

"Should BP implement a buying program this year?"

Work your way through other topic areas

Stick with the Problem

"Should BP implement a buying program this year?"

(2) Reward Card 2-Edged Sword

Dull 5%

Doesn't draw new business (invisible to prospects)

BP sells full retail price

Reward card touch point is at cashier

Community aspect - rewards some customers

New downtowners are affluent, can afford but need some love

Empty nester grew up with full price (pre-Amazon) but needs a reason to spend more beyond "the experience"

Says "come back, you're special"

Stick with the Problem

"Should BP implement a buying program this year?"

Think about your CFs

Rank order

How each CF relates to all other CFs (interactions)

Headlines have attitude and a point-of-view (POV)

Quantify, quantify, quantify