1. Describe the core elements of Aldi’s marketing strategy (target market, marketing mix, and key value propositions).
2. Use facts from the case to assess the extent to which different components of Aldi’s marketing strategy are aligned with one another, and with the key needs of the target market.
3. What particular strategic marketing decisions made by Aldi might have given it certain competitive cost advantages over low cost leaders such as Wal-Mart?
4. Can Aldi successfully replicate its business model in the US and other countries? Why or why not?
5. Discuss key challenges facing Aldi as it seeks to continue its success. In other words, how might Aldi fail in the next twenty years?
Innovation at Progressive (A) Case
1. How did Progressive’s average performance during 1995-1999 as an auto insurer compare to those of its key competitors (State Farm, All State, and Geico)? Draw a table (in either Word or Excel) showing calculation results (only results). Use average loss ratio, expense ratio, average net investment income ratio, and average net income ratio, all as a percentage of premiums earned, in your comparisons. What are the key findings from this analysis?
2. Customers of auto insurance are very price sensitive. How problematic is it to Progressive that customers almost always select the insurer that offers the best price? How can it use this behavioral pattern of customers toward its advantage?
3. In your opinion as a hypothetical marketing manager at Progressive, what specific attributes might Progressive’s best customers possess? Start with general statements but please go as specific so as to offer practical guidance to the company on how to target various consumers.
4. By 2000, Progressive had completed its pilot and was ready to roll out Autograph nationwide. Do you recommend that it go forward, redo the pilot, or halt the program altogether? Justify your recommendation.
Virgin Mobile Case
1. Given Virgin Mobile’s target market (14 to 24-year-olds), how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g., contracts, the size of the subsidies, hidden fees, average per-minute charges, etc.)
2. How confident are you that the plan you have designed will be profitable? Provide evidence of the financial viability of your pricing strategy.
3. The cellular industry is notorious for high customer dissatisfaction. Despite the existence of service contracts, the major carriers churn roughly 24% of their customers each year. Clearly, there is very little loyalty in this market. How have the various pricing variables (contracts, pricing buckets, hidden fees, off-peak hours, etc.) negatively affected the customer experience? Why haven’t the major...