From the desk of

Prof Shyam Vyas, Ph.D.

Bus 120 (Fri) W19 Case # 4 The Skool due at start of class on 8th Feb.
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The Skool was a singles bar in Chicago’s “Rush Street” area. The Rush Street area, located on Chicago’s
Near North Side by the Gold Coast, is approximately seven blocks long and three blocks wide, and is a
popular area for evening entertainment.

The Skool once was one of the most popular spots on “Rush Street.” There had always been wall-to-wall
people on Friday afternoons, but lately the crowds had begun to go elsewhere.

A marketing research consultant who patronized The Skool regularly - because it was two blocks from his
home, he had many friends that would tend to meet there just about each evening, he enjoyed the
atmospherics and the “crowd” that was habitually there, and because he knew the manager, Karen Stein,
well. He felt impelled to see if he could help – and after some discussions with The Skool’s manager, the
consultant sent a letter that proposed that The Skool conduct some marketing research.

The Skool’s Marketing Research Proposal

Dear Karen:

Here is a brief outline of what I believe The Skool must consider if it is to regain its popularity on Rush
Street. As you know, The Skool, hired exceptional people, stocked excellent brands, and used various
sales promotions to improve business. In spite of your efforts, a decline in The Skool’s popularity is
evident in decreasing footfalls in the bar.

As these efforts have not brought back the crowds The Skool once had, I suggest The Skool undertake a
marketing research investigation of consumer behavior and consumer opinions among Rush Street
patrons.

I recommend this project because The Skool once had what it takes to be a very popular bar on Rush
Street and should still have the potential to regain this status. Most likely, the lack of patronage at The
Skool is caused by one or both of the following factors:

1. A change in the people or type of people who patronize Rush Street bars.
2. The opinions of The Skool held by people who patronize Rush Street has changed.

The problem for The Skool’s management is to determine the specifics of the change, either in different
people, or in the opinions and attitudes and perceptions of the regular patrons of Rush Street and The
Skool.
Determining what type of information is desired by The Skool’s management depends upon some
underlying facts about the popularity of the bars on Rush Street. An assumption must be made concerning
the questions, “Does the crowd (weekend and Wednesday patrons) go where the regulars go or do the
regulars go where the crowd goes?” If you believe that the regulars follow the crowd, a general
investigation should be conducted to test why the mass goes to the popular bars. If the assumption is
made that a popular bar is popular because there are always people (regulars) there, the best method to
increase business is to get a regular following which will attract “the crowd.” What is it that is important
to existing customer set? Of course, the optimal position is to appeal to both the regulars and the crowd.
Thus, there are numerous areas for investigation:

Who visits Rush Street bars? What are the group characteristics? What motivates these people to go to the
various bars and thus make them popular? For example, to what extent does the number of stag girls in
the bars bring about more patrons? It may be mentioned that that The Skool, Rush-up, Filling Station and
Barnaby’s (all bars on rush street), had very pleasant, witty, young & beautiful female waitresses at the
peak of their popularity. Now that this has been reduced somewhat in favour of “equal opportunity for all
employees” (wherein disabled, minorities, and other criterions become hiring critical), could this have
been a factor in their reduced appeal? How important is bartender rapport with the patrons? What do
drinkers like and dislike about The Skool? Are higher prices, and lesser durations of Happy Hours a factor
that has contributed to lesser rush in The Skool? Is the quality of drinks a factor ? What is the awareness
among beer drinkers of beer bars in the vicinity ? What do they prefer / like / dislike ? How does having
Bud on tap or for that matter any other major beer brand on tap - affect a bar’s popularity? What image
does The Skool project? Is it favorable or unfavorable? Has it lost the image it once had because it is
trying to be the Store Annex, Barnaby’s, Rush-up, and The Skool combined? Is the décor consistent? How
can a favorable image be put back into Rush Street drinkers’ minds?

You might think The Skool can appeal to all Rush Street people, but you can’t be all things to all people.
A specialization of image and customers may bring back “the crowd” for The Skool. Is there a need to re-
position The Skool in potential and existing customer minds?

How important is it to be the first with a new promotion? For example, did Barnaby’s idea of starting a
wine and chicken feast make it the place to go to – at least in the short run? If a food promotion would go
over, what should The Skool try? Would some servings free sampling of snacks as a promotion be used ?

There are many areas where The Skool would benefit if it conducted a marketing research survey. Of
course, the above suggestions for investigation are not all-inclusive, as I have not had a chance to talk
with you to determine which areas are the most important. If you would like to have me submit a formal
research proposal to determine how The Skool can improve its business, and how to go about a possible
market research effort - I will be happy to talk with you any evening – I am a die-hard at The Skool as
you know!
Sincerely yours,
Sam Vijas

Questions for discussion

1. Has the problem been adequately defined? Are Research objectives well defined and stated ?
How would you / your group define The Skool’s problem ?
2. What research objectives would you list? State.
3. What research methodology would you suggest ? What kinds of data do you believe would help
The Skool Management rejuvenate footfalls in the bar ? What Differentiation, what USP, and
what Positioning would you strive for ? Why ?
4. What questionnaire would you formulate – prepare a draft questionnaire for The Skool ?
5. Draw up a research proposal for The Skool – that might help..

_____________________________________________________________________________end of Case 4 Bus 120 (Mon) W19

From the desk of
Prof. Shyam Vyas, Ph.D.

Bus 120 (Fri) W19 –Essentials of Marketing due at start of class on: 15th Feb.

Case 5 -MAYFLOWER CORPORATION: MOVING Times & Moving MARKETS

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Mayflower Corporation engages in local, interstate, and international moving and storage of
household and commercial goods. It also operates 3,700 route school buses with a daily
passenger load of 275,000. its fastest-growing business is transportation of computers,
electronic equipment, and trade-show displays and exhibits, primarily for IBM and Control
Data. Its wholesale appliance and home entertainment center serves Midwest retailers who
need home appliances and home entertainment products quickly, safely, and efficiently.

Using 800 independent owner/operators, 700 independent agents, and 100 nonexclusive
foreign independent agents, Mayflower serves as a common carrier of household goods to
all fifty states and many foreign countries. Moving household goods accounts for 50 percent
of its revenues. But when interest rates increase, houses do not sell as quickly and fewer
people move. Mayflower has partially overcome this problem by contracting to move the
employees of major corporations.

Corporations are less sensitive to economic changes in moving personnel. Moving

household goods still, however, is a very seasonal business.

The uncertainties of moving household goods, along with the major changes in the trucking
industry as a result of deregulation, have prompted Mayflower to seek out other
opportunities in other markets. Although the prospects for the trucking industry over the
long run look favorable, deregulation has brought substantial changes.

Thousands of motor carriers have gone bankrupt since the passage of the Act. Most firms
have improved financially, but industry experts predicted that failure in 1987 would
continue, although at a much slower rate.

Deregulation allowed truckers to reduce rates. Rates were discounted from 10 to 30

percent with most being about 20 percent. With fuel accounting for 8 percent of revenues
and wages representing 60 to 65 percent, discounts meant the end to some trucking
companies. Some companies managed to survive by employing nonunion labor, which costs
about 25 percent less than union labor. Other companies sought alternative opportunities.
Rate discounting continues in the industry, but has not increased.
Deregulation has opened up markets by allowing truckers to compete for business where
once they were denied by lack of appropriate government permits. Competition has
increased the importance of marketing strategy, productivity, and technological
improvements. In the business shippers market, several developments are in process. Large
shippers are allocating shipments to a much smaller number of common and contract
carriers.

Mayflower entered and is succeeding in the business shipper market of computers and
electronic equipment. This part of its business has grown 20 percent annually. Mayflower
convinced manufacturers that electronic equipment needs special handling in air-ride
suspension vans used by house hold goods movers like Mayflower, rather than the steel
spring trailers used by general freight common carriers. Quicker movement of goods has
also been a selling point of Mayflower. Mayflower is adding to fleet size and sales force to
penetrate the market even further.

To succeed in the business shippers’ market will require innovation (such as expanded
computerized information systems), cost competitiveness (such as wider tractors and twin
trailers now allowed on the highways, improved load factors, and reduced unit cost), and
improved service. Quality service along with price is an important consideration to shippers.
Multimodal shippers argue that they can offer more services to shippers, including possibly
one-stop shipping. Truck and rail combinations have already increased. Even with all of the
above qualities, a trucker’s fate depends somewhat on the shape of the economic cycle, for
truck transportation is a derived demand with business conditions determining the amount
of demand.

To offset the seasonality of household goods moving and to be immune to economic cycles,
Mayflower expanded into the transportation of school children. Mayflower offers to rid
school boards of the headaches of school bus operations and at the same time, because of
its expertise, reduce cost 10-15 percent. The potential for expansion in the market is
considered very high. The public sector accounts for 80 percent of all school bus activities
now. School enrolments are at an all time high and increasing. This market segment will
grow rapidly. School Board officials that decide to select transportation for their school
children typically make rational decisions – taking in account cost, safety, timeliness & track
record of transport sub-contractor, and testimonials & referrals from other schools Boards
playing a major role in their decision-making. Mayflower has safe modern transport buses,
experienced and well trained courteous drivers with clean accident-free record (the
company has decided not to hire any drivers that have any accident or criminal history), and
a strong focus on customer satisfaction that has garnered excellent recommendations from
existing customer bodies.
For a company that wants to stay in the transportation business, maximize return on
investment, and increase market share, has Mayflower successfully adapted to the
deregulated environment? Is it moving into markets with good prospects? What does your
group think ?

Questions /Issues for Discussion

1. What markets does Mayflower serve? What different kinds/types of markets can you
discuss ? Name & explain. What specifics do you look for as a marketer - when
evaluating different markets ? Expand on difference between consumer markets versus
organizational markets.
2. What demographic, economic, and other trends in the consumer market would be of
concern to you as a senior Mayflower executive?
3. In serving the organizational markets, what should Mayflower executives consider?
How could that be different from when they consider other types of markets ? Be
specific.
4. Take any real product / brand in Indian context and discuss why and how the marketing-
mix variables may change with the brand catering to different target markets ! Please be
specific. Your group can discuss the issue with a marketing manager of any firm, and
discuss how it operates in different markets – and how it has changed its marketing-mix
variables to cater effectively to changing customer requirements in specific target
markets over time .
__________________________________________________end of Bus 120 W19 Case # 5 EOM SV/UFV
From the desk of
Prof Shyam Vyas, PhD
Bus 120 (Fri) W19
Case # 6 : Pillsbury Restaurants due at start of class on :15th Feb

The Pillsbury Company is a diversified international food company operating in three major
segments of the food industry: consumer foods, restaurants, and agri-products.

Included in the area of consumer foods is the entire line of Pillsbury brand products, Green Giant
vegetables, and Haagen-Dazs ice cream. Pillsbury’s restaurant group includes Steak and Ale,
Bennigans Tavern and Restaurant, and Burger King – a major competitor to McDonald’s
globally. The agri-products division is involved with grain merchandising and the production of
industrial foods such as flour and bakery products.

Pillsbury’s restaurants prospered in the early 1980s. Steak and Ale experienced a 22 percent
sales increase last year. Management programs focused on maintaining continued sales growth.
New menu items were added to satisfy continuing customer demand for quality and variety; wine
sales were strongly promoted, with an emphasis on premium brands; and new creative promotion
and advertising was developed for television, featuring “lifestyle” themes. Sixty-two restaurants
were remodeled to incorporate the latest décor, and 22 units were sold as part of an ongoing
asset-management program. High-potential locations, in terms of sales and returns on
investment, have been determined for restaurant expansion.

Bennigans restaurants experienced an astounding 65 percent rate of expansion with 43 new

restaurant openings last year. This rapid expansion was achieved through high quality site
selection with an eye on customer convenient locations that facilitated wonderfully large
footfalls, and the successful recruiting and training of management personnel. Both television
and radio as well as outdoors and transit advertising were used to support sales. A major feature
of Bennigans is its broad menu that emphasized price and value. Menu changes are made
continuously to ensure that consumers’ evolving needs are satisfied. Another feature that
Bennigans promotes heavily is the celebration of certain holidays. Restaurant attendance is
increased through the popularity of occasions such as Halloween, St. Patrick’s Day, and New
Year’s when the restaurants celebrate holiday theme decors and sales promotions.

Burger King, promoted as a high quality fast-food restaurant chain, attained a 19 percent sales
increase last year. It is a restaurant chain that competes directly with McDonald;s and is viewed
by the company as popular and having a high market-share in a growing market for fast foods.
During the year, the company opened 270 new restaurants, achieving a worldwide total of more
than 3,502. Burger King franchises were responsible for 227 of the 270 new restaurant openings,
which demonstrates the company’s strong support of the franchise system. Wholly operated
company owned stores require much higher levels of involvement and tend to have a larger
capital outlay and longer repayment periods. New restaurants were made smaller in size to take
advantage of current demographic and economic trends. Real estate markets were also a factor.
The newer restaurants required fewer operators and less construction time; yet they could
produce yearly sales of $1 million per outlet and could be expanded as increased sales warranted
the change. Burger King management is very cost conscious and tends to do well in terms of
savings by adopting excellent employee suggestions. Young student workers at these restaurants
are more enthusiastic and motivated they believe than competitor personnel. Some of the
temporary minimum wage employees get opportunities to move up into management ranks based
on their merit, performance, aptitude, qualifications and skills. This has worked miraculous
performance results at local levels. Training and team-building activities are also emphasized.

Television advertising has proved to be very successful and innovative for Burger King.
Advertising slogans, such as “Aren’t You Hungry?” and the “Battle of the Burgers” and
“Broiling is Better” promotions created increased sales and new awareness of the restaurants.
The company distributed coupons with “one-on one free” offer that made a free Whopper
available when a customer purchased one, and said, “The Whopper beats the Big Mac.” Many
restaurants reported a whopping 100 percent increases in sales due to this promotion.

New product introductions have also helped sales. Increasing the product assortment and range always
does. The Bacon Double Cheeseburger, the Whopper, and the 23-item salad bar have been offered as
attractive, new menu alternatives. Emphasis has also been placed on operating excellence with Burger
King’s “Shape-Up” program concentrating on new standards of quality, training, and service to provide
for increasingly better customer satisfaction.

While Burger King has maintained a highly successful domestic operations and concept, its international
operations have produced substantial operating losses. Executive management is concentrating on
transferring basic marketing, operations, franchising, and financial strategies that have proven successful
in the United States to Canada and other international markets – albeit with great care, because many
imponderables are very different in markets abroad.

Questions for discussion

1. Do a situation analysis of Fast Food (QSR) outlets scenario in India – and comment on Burger
King’s marketing effort in India. Be specific please. State who the major players are – Talk of
industry size, growth & give annual sales figures, market shares, strengths & weaknesses and
Opportunities & Threats.
2. Identify what you believe are noteworthy good management and marketing practices and
strategies followed by Burger King.
3. Has Pillsbury been practicing the marketing concept? State specific arguments drawn from the
case and your understanding to buttress your point of view.
4. What societal or economic trends may have caused Pillsbury to sell some restaurants, such as
Poppin’ Fresh featuring desserts and sandwiches, and expand others, such as Burger King?
_______________________________________________________________________end of Bus 120 Case 6 Pillsbury, W19