Question

Please read the following prompt, and prepare a written response for the three discussion questions:

You just got a great job directing all marketing efforts for CanineCare, a chain of 10 “doggie day care” facilities in a large Midwestern city. As the first local service provider of its kind, the firm enjoys a large market share and healthy revenues. It has a reputation for clean, imaginative play spaces and knowledgeable employees.

However, the company faces serious competition from national franchises as well as new mom-and-pop operations. Growth has slowed. Fewer customers are referring their friends to CanineCare, and you’re missing out on business from the burgeoning population of young professional pet owners who are moving into the city.

Based on the results of a market survey, you are convinced that weak positioning is the major problem. CanineCare is known mainly for being local and long- established – characteristics that aren’t important to the new residents and don’t give current customers a strong reason for recommending your service over alternatives.

There’s no question that CanineCare needs to be repositioned. The marketing research consultant who analyzed the survey recommended either an affordability positioning (“Care you can afford”) or a quality positioning (“The best care anywhere”). The choice is yours.

An affordability promise is almost certain to attract the highest number of new users in the short term, which will make you look good. But a cost-cutting strategy entails the risk of undermining the high-contact customer experience, and is unsustainable over time.

A quality promise will build long-term brand equity. It will also clearly differentiate CanineCare from competitive operators, all of whom offer nearly identical services and facilities. However, this approach could entail a price increase and take months to show results.

As a service marketer, you know that customer trust is the key to successful marketing of any intangible offering. This means that site manager Brian must be able to deliver on any positioning promise you make. Fortunately, he expresses confidence about making CanineCare’s services either more affordable or higher quality.

Discussion Questions

1. Should you reposition CanineCare on the basis of value or of quality? Both options are doable, but neither is perfect. Which should you choose and why?
2. What is the best way for Brian to implement cost cuts renegotiate vendor contracts or give notice to several high-paid employees and replace them with teenagers willing to work for minimum wage? Explain why you chose that option.
3. How will you promote CanineCare’s affordability rely on social media or promote directly to current customers? Explain why you chose that option.

Answer 1

Yes, indeed both options are doable but i would go for quality. In the long run when competitors increase, and customers are able to compare prices then they realize the importance of quality and make their decisions based on both the parameters, and customers who really care about their pets choose quality over price. So, to make a reliable and long lasting clientele the approach should be quality based rather than price based.

Moreover, if Brian has to implement cost cuts I would suggest renegotiating vendor contracts, because the employees they have, add value to their work and are highly skilled at what they do, and that is what they need to succeed in this line of business. Customers would love to bring their pets experts rather than teenagers. Thus taking away high paid employees could impact the business badly.

To promote CanineCare's affordability and quality together, I would choose both social media and also directly approaching current customers. However, I would focus more on social media and share with the world the quality that CannineCare offers and at affordable costs. Quality would be the main selling factor, and if presented properly through social media messages, videos and promotions, affordability would be easily handled.