Polycorp Analysis & Discussion Post
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Wilfrid Laurier University *
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Course
362
Subject
Marketing
Date
Apr 3, 2024
Type
docx
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4
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Problem/Opportunity
:
Clear description of the problem or opportunity
Consider: Main issues, symptoms, action trigger, relative importance, urgency
Stakeholder needs, objectives
Decision criteria identified (to evaluate alternatives; for expected results)
Analysis
Do NOT repeat case facts; develop implications; use marketing theory
Internal (strengths/weaknesses):
Resources, skills – implications?
Current marketing strategy (target market and positioning) – implications?
Current marketing mix (4P’s) – implications?
Current financial position, revenue, costs, profits, break-even – implications?
External (opportunities/threats):
Environmental trends (political, economic, social, technological, etc.)
Market trends
Consumer Analysis (industry/category):
Market segmentation, factors influencing buying decisions, involvement &
buying behaviour
current target segment(s)
new/potential target markets
competitive
segments
Competitive Analysis:
Who are they? strengths, weaknesses, competitive advantage
Other
:
What is special about this case?
e.g. Service, B2B, International marketing, Ethical issues – implications?
Decision Criteria & Alternatives (stated and emerging from analysis)
Decision Criteria Applied
:
Objectives, assumptions, constraints, management preferences
Alternatives/Solutions
(Proposed in the case and/or your own);
Evaluate ‘partial options’ (pros/cons), to determine feasibility
Bundle into complete alternative solutions (STP+4Ps)
Quantitative and qualitative analysis for each complete alternative;
consistently using correct decision criteria.
Rationale, specific, feasible/implementable, mutually exclusive
Recommendation
Decision
:
Which of the above alternatives (marketing strategy) do you recommend?
Why? Recommend how you will overcome disadvantages identified.
Implementation Plan Apply Marketing Theory (BU352 textbook)
Marketing Strategy
:
Overall segmentation strategy, include target market in positioning statement
Marketing Mix:
Product: Type, branding, packaging, labelling, product life cycle
Price: 5 C’s, Strategies, tactics, suggested price(s) and mark-up(s)
Place: Strategy, levels of channel structure, distribution intensity
Promotion: Objectives, IMC tools - advertising, sales promotion,
personal selling, direct marketing, public relations, social media,
budgets and rationale
Expected Results
:
Break-even, market share, profit, revenue target, marketing budget, timeline
Projected results under different scenarios.
Match/fit with decision criteria
Polycorp has a number of strengths and weaknesses and facing opportunities and threats in
2016. Identify 4 strengths, 1 weakness, 1 opportunity, 2 threats – discuss an implication for
each (total 8 implications)
Case facts:
-
Recurring revenue every 3-12 months
-
Mining industry facing recession (sales dropped over 60%)
-
Mining industry 42% of company sales
-
Mining 78.3% export sales, largest opportunity for growth
-
Mining industry large players planning to sell 60% of assets with large workforce cuts
-
Lacked focus in Canadian market focusing on US and declined in service
-
Took opportunity to revitalize in CA and focused on niche high quality premium priced mill liners
-
Focused on only grinding mill liners for mining industry, protective liners for industrial market, and track
encapsulation systems for transportation and light rail market
-
Each market significant barriers of entry
-
Produced specialized products that were benchmarks for reliability and quality
-
Serviced dangerous markets like the DR of the Congo
-
Focus on 4 main topics, superior products/tech, customer knowledge and focus on their needs, human
capital/talent, and superior quality
-
Two new entrant competitors using disruptive pricing (lower price) to knock them off, in particular two large Chinese companies CITIC Ltd. And Naipu Mining Machinery Co.
-
Largest competitors Metso, Tega, and Weir Group all larger, more diversified companies
-
Strengths
1.
Specialized Products & Quality – Polycorp is geared towards producing high quality products for a niche market. This allows them to benefit from economies of scale and charge a premium with higher margins than a competitor due to their specialization. While charging a higher margin may turn away some customers, it attracts high ticket clients that are interested in quality
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