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THE CASE METHOD: Socit BIC

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50% market share in pantyhose in France. Soci t BIC ... Pen, lighters, pantyhose, razor. Soci t BIC Story: Business Philosophy. No interest in inventing ... – PowerPoint PPT presentation

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Title: THE CASE METHOD: Socit BIC


1
THE CASE METHODSociété BIC
  • Define the problem
  • Formulate alternative courses of action
  • Evaluate the alternatives
  • Choose and recommend a course of action

2
Analyze Environment
  • Economic
  • Social
  • Political
  • Legal
  • Technological
  • OPPORTUNITIES
  • THREATS
  • Trends in disposables
  • Hygenic
  • Private
  • Globalization
  • Technological advances

3
Analyze Industry
  • Competitors
  • New Entrants
  • Substitutes
  • Strong Suppliers
  • Strong Buyers
  • BIC vs the industry
  • BIC within the industry

4
Analyze Industry Competitors
  • Price
  • Advertising
  • Sales Promotion
  • New Products
  • Service
  • Strategies
  • STRENGTHS
  • WEAKNESSES
  • Gillette
  • Double price
  • Gillette Daisy
  • Without guard
  • Small ad budget
  • Not aggressive
  • Innovative
  • Good brand equity
  • Market leader

5
Analyze Industry Competitors
  • Price
  • Advertising
  • Sales Promotion
  • New Products
  • Service
  • Strategies
  • STRENGTHS
  • WEAKNESSES
  • American Safety Razor
  • Higher price
  • Flicker
  • Without guard
  • Small ad budget
  • Not aggressive
  • Not well known

6
Analyze Industry New Entrants
  • Financial Requirements
  • Brand Equity
  • Economies of Scale
  • Not likely because
  • Financial requirements
  • BIC Gillette names
  • BIC Gillettes size

7
Analyze Industry Substitutes
  • Brand
  • Industry
  • Form
  • Generic
  • Strong brand substitutes
  • Strong industry substitutes
  • No generic substitutes

8
Analyze Industry Suppliers Buyers
  • Strong Suppliers Forward Integration
  • Strong Buyers Backward Integration
  • No strong suppliers (no apparent sign of
    integration)
  • Some strong buyers (intermediaries) (no apparent
    sign of integration)

9
Analyze Company
  • Quantitative
  • Qualitative
  • Management Philosophy
  • Finances
  • Organization
  • Culture
  • STRENGTHS
  • WEAKNESSES
  • Société BIC
  • Marcel Bich
  • Growing fast
  • Extending line
  • Worldwide
  • Strong finances
  • Dedicated business philosophy

10
Société BIC Story Facts Figures
  • Founded in France by Marcel Bich
  • Salesman (office supplies)
  • Branded after his name
  • Still CEO in Paris
  • Growing (1976 vs 1975)
  • Non US sales 40, earnings 100
  • US sales - 50 of non US
  • earnings - 80 of non US growing at 45

11
Société BIC Story Facts Figures
  • Sales in 90 countries
  • Plants in 4 countries
  • Mass producer/seller
  • produces 9 million pens/day (33 of world
    market)
  • sells 800 thousand lighters/day (20 market
    share)
  • 50 market share in pantyhose in France

12
Société BIC Story Business Philosophy
  • Cheaply made
  • Briefly used
  • Disposable
  • 1953 1976
  • Pen, lighters, pantyhose, razor

13
Société BIC Story Business Philosophy
  • No interest in inventing
  • Strong capacity to improve
  • Strong capacity to make things worldwide
  • Extreme interest in quality
  • Never promote unless equal to 1 in market
  • Finance until beating competition in quality
  • Even disposables cannot sell unless their
    quality is high Marcel Bich

14
BIC Lady Shaver Facts
  • To be launched in April 1978
  • BIC Pen US invests 11 million promoting shavers
  • Wet shave market 350 million
  • Gillette dominates
  • BIC has 5
  • BIC aims 10

15
BIC Lady Shaver Facts
  • BIC Lady 2 for 0.49 (0.245 each)
  • Gillette Daisy 2 for 1.19 (0.595 each)
  • American Safety Razor Flicker 5 for 1.69
    (0.338 each)
  • Work on brand name - BIC Lady! (Silky Touch!)
  • First ladys product at a good price
  • High safety features

16
BIC Lady Shaver Promotion
  • Magazine ads
  • No TV to protect BIC Shaver
  • Will emphasize use
  • Close-up pictures
  • Office Legs, Beach Legs, Bedroom Legs
  • Very large budget
  • Couponing, sampling, premiums
  • Shampoo and roll-on premiums not relevant

17
Analyze Marketing Strategy Facts, Opinions
Assumptions
  • Fit with Corporate Strategy
  • Competitive Advantage
  • Segments Targets
  • Total Marketing Mix
  • BIC Lady Shaver
  • Perfect with corporate strategy
  • Advantages
  • Guard
  • Price
  • Aggressiveness
  • Consistent mix

18
Analyze Problems Their Core Elements
  • DONT REPEAT THE
  • CASE STORY!
  • Case Material
  • Synthesis
  • Generalizations
  • Implications
  • BIC story shaver story
  • Justification of strategy
  • Mix decisions
  • Suggestions

19
Formulate Evaluate Alternative Courses of Action
  • List Alternatives
  • Evaluate Each Alternative
  • Choose the Best Alternative
  • Detail the Implementation
  • BIC Lady Shaver

20
Formulate Evaluate Alternative Courses of
Action List Alternatives
  • Generate 3-7
  • alternatives.
  • Dont enter
  • Enter penetrate
  • Enter skim

21
Alternative Strategies
  • Innovation
  • Skim creaming
  • Prestige pricing
  • Broad product line

22
Formulate Evaluate Alternative Courses of
Action Evaluate Alternatives
  • Costs
  • Time
  • Money
  • Resources
  • Opportunity Cost
  • Product is ready
  • RD incurred
  • Will consume promotion budget
  • Can spend more on other products

23
Formulate Evaluate Alternative Courses of
Action Evaluate Alternatives
  • Benefits
  • Sales
  • Profit
  • Customer Satisfaction
  • Goodwill
  • Good sales potential
  • Good profits potential
  • Will ride on current success
  • Will help existing success
  • Favorable customer satisfaction
  • Favorable goodwill

24
Formulate Evaluate Alternative Courses of
Action Choose Alternative
  • Making Decisions Under Uncertainity
  • Developing Assumptions
  • Enter penetrate
  • Assume competition skimming
  • Assume competition not aggressive
  • Assume lighter competition in ladys market

25
Strategy Marketing vs Corporate
  • Mass consumption
  • Disposability
  • Elastic demand
  • Universal usage
  • Convenience
  • Ease of loss
  • Entry through emulation (imitation with
    development)
  • Penetration pricing
  • Saturated markets
  • Heavy advertising

26
Basic Strategy!
  • How Important Is A Basic Strategy for Success?
  • Société BICs reason for being.
  • Main success factor.
  • All enterprises need a basic strategy.
  • Basic strategy is subject to review.
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