Spriware Case Study
STUDENT NAME: AKASH SALIAN
STUDENT #: 4213714
CASE # 1: SPRIWARE CANADA INC.
COURSE NAME: BICG9503 01 International Mktg Strategies
PROFESSOR NAME: MARK PARKER
1) Has Spriware successfully marketed its products in Canada? Explain why or why not?
Yes, Spriware has been successful in marketing its products in Canada. It sold all the units of refrigerators produced in the Canadian market, in the first year of operation with a market share of 10%. The main factor for its success is its marketing strategy, which they used in two ways. Firstly, they distributed their products to two of the selected large retail groups in the market by conducting proper market research. Secondly, the co-marketing activities carried out by Spriware and the retail groups proved effective for selling and distributing the products. Spriware took note of the primary target market and the pricing, by developing television and newspaper advertisements for the young middle class with average household income. Looking at the needs of the middle class families, the company kept the average retail price around $1500 as compared to other competitors with similar models priced around $1700. Spriware Inc spent $10 million for its marketing activities in the first year of operation. The given competitive five years after sales services and repair was an addition to their success. In spite of Spriware’s success in the market among the other nine manufacturers, the company saw a lower profit performance than the expected Return of Investment. Though Spriware had 10 percent market share in its first year of operation, it was not enough for the company’s sustainable growth. To increase their market share CEO Kenneth Weller considered cutting the cost of the refrigerators so that the company can capture a market share of 25 percent in near future. However, the prices of Spriware’s products were already competitive in the market and Weller feared that any further price cut would create a war
STUDENT #: 4213714
CASE # 1: SPRIWARE CANADA INC.
COURSE NAME: BICG9503 01 International Mktg Strategies
PROFESSOR NAME: MARK PARKER
1) Has Spriware successfully marketed its products in Canada? Explain why or why not?
Yes, Spriware has been successful in marketing its products in Canada. It sold all the units of refrigerators produced in the Canadian market, in the first year of operation with a market share of 10%. The main factor for its success is its marketing strategy, which they used in two ways. Firstly, they distributed their products to two of the selected large retail groups in the market by conducting proper market research. Secondly, the co-marketing activities carried out by Spriware and the retail groups proved effective for selling and distributing the products. Spriware took note of the primary target market and the pricing, by developing television and newspaper advertisements for the young middle class with average household income. Looking at the needs of the middle class families, the company kept the average retail price around $1500 as compared to other competitors with similar models priced around $1700. Spriware Inc spent $10 million for its marketing activities in the first year of operation. The given competitive five years after sales services and repair was an addition to their success. In spite of Spriware’s success in the market among the other nine manufacturers, the company saw a lower profit performance than the expected Return of Investment. Though Spriware had 10 percent market share in its first year of operation, it was not enough for the company’s sustainable growth. To increase their market share CEO Kenneth Weller considered cutting the cost of the refrigerators so that the company can capture a market share of 25 percent in near future. However, the prices of Spriware’s products were already competitive in the market and Weller feared that any further price cut would create a war