Fabian Advertising
1. Executive Summary
This report is commissioned to examine the new business strategies of Fabian Advertising. It draws attention to the facts that the sales revenue has been decreasing dramatically in recent years. The decrease in profits was because its clients have chosen its competitors’ services over theirs. As clients’ expectations and needs have changed, Fabian Advertising has to change to a new business mission - build. The company is in the high growth, low market share situation. Its competitive advantage is differentiation focus. It is targeting a niche and higher end market share. Its key success factors are “Customer Service”, “Innovation and Quality”, “Risk Management”, “Company Image and Reputation”, “Understand Your Client Needs” and “Know Your Competitors Well”. It uses “Activities Based Costing” for its cost allocation. It is selling premium services and products, so “Cost Plus Pricing” is more suitable than “Target Costing”. It uses net present value as capital budgeting technique. “Customer Profitability Analysis” is important, so it will know how to develop its marketing strategies. It is important for Fabian Advertising to create a new quality and time performance measurement using its competitors as their benchmark and further improve
2. Introduction to report
2.1 Context
Fabian Advertising is an advertising agency. It is well known in creating short, simple and cost efficient television commercials for its clients. In recent years, Emil Fabian, the owner of the company discovered that profits of the company have decreased. The company can no longer attract clients like before. This was partly due to the change in customer characteristics. The demand in sophisticated, high quality advertisements has increased. Fabian Advertising needs to develop a new strategy to increase its market share.
2.2 Purpose
The aim of this report is to investigate new business strategies of Fabian Advertising.
2.3 Definitions
2.3.1
This report is commissioned to examine the new business strategies of Fabian Advertising. It draws attention to the facts that the sales revenue has been decreasing dramatically in recent years. The decrease in profits was because its clients have chosen its competitors’ services over theirs. As clients’ expectations and needs have changed, Fabian Advertising has to change to a new business mission - build. The company is in the high growth, low market share situation. Its competitive advantage is differentiation focus. It is targeting a niche and higher end market share. Its key success factors are “Customer Service”, “Innovation and Quality”, “Risk Management”, “Company Image and Reputation”, “Understand Your Client Needs” and “Know Your Competitors Well”. It uses “Activities Based Costing” for its cost allocation. It is selling premium services and products, so “Cost Plus Pricing” is more suitable than “Target Costing”. It uses net present value as capital budgeting technique. “Customer Profitability Analysis” is important, so it will know how to develop its marketing strategies. It is important for Fabian Advertising to create a new quality and time performance measurement using its competitors as their benchmark and further improve
2. Introduction to report
2.1 Context
Fabian Advertising is an advertising agency. It is well known in creating short, simple and cost efficient television commercials for its clients. In recent years, Emil Fabian, the owner of the company discovered that profits of the company have decreased. The company can no longer attract clients like before. This was partly due to the change in customer characteristics. The demand in sophisticated, high quality advertisements has increased. Fabian Advertising needs to develop a new strategy to increase its market share.
2.2 Purpose
The aim of this report is to investigate new business strategies of Fabian Advertising.
2.3 Definitions
2.3.1
References: 1. http://www.maxi-pedia.com/BCG+matrix+model 2. Schoemer Karl G 2009, Change is Your Competitive Advantage: Strategies for Adapting, Transforming, and Succeeding in the New Business Reality, Churchville, PA, U.S.A. 3. http://marketingteacher.com/lesson-store/lesson-generic-strategies.html 4. Harvard Business School Press 2009, Surviving Change: A Manager 's Guide: Essential Strategies For Managing In A Downturn, Philadelphia, PA, U.S.A. 5. http://www.ehow.com/list_6059731_examples-key-success-factors.html 6. David A. Aaker 2001a, Developing Business Strategies, 6 edition, Anaheim, CA, U.S.A 7. Winston Fletcher 2008a, Powers of Persuasion: The Inside Story of British Advertising 1951-2000, Guernsey, GY, United Kingdom 8. http://www.wpp.com/wpp/ 9. Erik M. van Raaij, (2005a) “The strategic value of customer profitability analysis”, Marketing Intelligence & Planning, Vol.23 Issue:4, pp. 372-381 10. Anthony, R. N., and V. Govindarajan. 2004a McGraw Hill. P. 644