Big Red, Ltd.

This case addresses two frequently heard questions in real-world business settings: “Why are sales going down?” and “What decisions must we make to reverse the sales decline?” These questions were directed to Dr. Felix Wilder, a professor of Marketing, by the senior management of Big Red, Ltd., headquartered in Waco, Texas, after sales reports indicated a significant decline in year-over-year sales in the Louisville, Kentucky, market region. This region represented one of Big Red’s most important market areas for soft drinks outside of its home base in Texas. Members of Big Red’s senior management team were unable to identify the specific factors that had contributed to the sales decline. As a result, they commissioned Dr. Wilder to conduct an extensive marketing research project to determine the factors contributing to the erosion in sales. Dr. Wilder proposed a multifaceted exploratory research project that involved an extensive review of industry and trade literature, in-depth interviews with grocery store and super center store managers, an in-store consumer survey of Big Red customers, and a consumer focus group. The research design focused on the marketing mix variables, environmental factors, the target market, and changing consumer purchase behavior and lifestyle issues as possible sources contributing to the sales erosion. The results of Dr. Wilder’s investigation conflicted with Big Red management’s preliminary hypotheses and revealed unexpected factors that may have contributed to the downward drift in sales.  Based on the research, Dr. Wilder presented management with various alternative courses of action to correct the sales decline.

Social media: The new hybrid element of the promotion mix

The emergence of Internet-based social media has made it possible for one person to communicate with hundreds or even thousands of other people about products and the companies that provide them. Thus, the impact of consumer-to-consumer communications has been greatly magnified in the marketplace. This article argues that social media is a hybrid element of the promotion mix because in a traditional sense it enables companies to talk to their customers, while in a nontraditional sense it enables customers to talk directly to one another. The content, timing, and frequency of the social media-based conversations occurring between consumers are outside managers' direct control. This stands in contrast to the traditional integrated marketing communications paradigm whereby a high degree of control is present. Therefore, managers must learn to shape consumer discussions in a manner that is consistent with the organization's mission and performance goals. Methods by which this can be accomplished are delineated herein. They include providing consumers with networking platforms, and using blogs, social media tools, and promotional tools to engage customers.Integrated marketing communications Social media Consumer-generated media Promotion mix