Campus Calendar Case

Campus Calendar Case

I. Background

A. Organization Mission Statement

To provide appealing, cost effective and user friendly calendar products to the student, faculty, and supporters of Eastern Washington University and the general population of the Inland Empire.

B. Organization's Long Term Goals/Objectives

The group wanted to develop and market a product "any product" for the express purpose of making enough money to fund their senior year of tuition of $500 per quarter and gain some practical experience in business. I would imagine that if the group became successful there would be individuals that would continue to operate the business.

C. Industry and Market Analysis

1) Analysis of Competitors - Note! This analysis assumes there is no significant impact of computer based/generated calendars in the marketplace.

a. Objectives- Currently the company that provides a free calendar receives its income from advertising on the calendar. So, we can believe that the objective is to provide a basic product, and spend as little as possible to place the product in the market.

The commercial "Mall" competition has the objective of providing a product that caters to as much of the market as possible by having a great deal of diversification in their product mix, thus paying a premium price for the niche product.

b. Assumptions- The Company that provides the free product believes that by providing a free basic product will be draw enough consumers to make it worth their effort, and that sponsoring companies will continue to prefer their product for an advertising outlet.

Commercial competition believes that consumers will be willing to spend their discretionary income on customized calendars, and basic functionality is less important.

c. Capabilities- The free calendar manufacturer is limited in its resources for customization, however, they probably have developed the ability to take advantage of economies of scale and have reduced the average cost of their product.

d. The commercial competition definitely has mastered customization and economies of scale due to large volume purchases, as they cater to the general calendar market, as well as students of EWU.

e. Institutional Competition- The calendar company faces indirect competition from the surrounding Colleges and Universities. With Gonzaga and Whitworth located in Spokane and Washington State University just 90 miles away in Pullman, the company will face competition from supporters of these respective schools in the general calendar market.

2) Product Life Cycles -identify the stage the industry is in and support

The calendar industry is well established and in 1990 is well entrenched in the mature phase of its lifecycle, in retrospect, the industry is about to begin its decline phase with the advent of on demand printing, computer generated calendars, PDA's, and laptop computers coming around the corner. Currently, the industry enjoys consistent revenue with little technological advancements.

D. SWOT Analysis

Internal Factors Strengths Weaknesses

Company Image/Culture One of the strengths the team is their affiliation with Eastern Washington University. If they rely on this affiliation, it should attract customers, especially from the business school students. There could be a perceived amateur "project" image associated with their plan, which could hinder the group as they branch out into the general market.

Financial Resources The group is not looking to generate a great deal of income for the project to be a success Limited startup funds/capital to contribute to product development and distribution

Marketing / Distribution The group has several low cost/free distribution channels open. The have a standing order with the campus book store. They don't have much of a budget for advertising, or distribution.

Market Share They are coming into the market fresh, with the needs and wants of their specific target market in mind. The group is entering a well established market, with tough competition that offers a free product, as well as more traditional competition from calendar companies (In the malls)

Contracts The new company already has sizable commitments from the campus book store, which eliminates some risk to potential sponsors, as well as credibility to the group Potential contract with the newspaper could become inconvenient if they find that it is ineffective. A contract would tie up capital that could be used for other forms of advertising

Geographic market Being in the Inland Empire creates an isolated market with no significant competition.

Close to Spokane provides a larger market base to penetrate than simply marketing to Cheney/EMU market. The Spokane market while close actually has a stronger community bond with Washington State University, so market penetration will be difficult.

External Factors (Macro-environment) Opportunities Threats

Demographic/Customers Target the Alumni and general population of Eastern Washington (Spokane Area) Competing in the PNW, comprising the three states comprising the Inland Empire.

Socio-cultural Capturing the spirit of EWU that can be bonded or related to the broader target market. The spirit "tasteful" picture many not be what the target market demands.

Economic The general population of Eastern Washington will have the funds to acquire their product.

Raw material prices drop

Outside sponsorship could increase revenue and permit a higher quality calendar Generally, college student will not have the disposable income to purchase an expensive calendar.

Raw material prices increase

Competition The company will be able to provide a better product than the free product available currently, and EWU will have greatest access to EWU supporters in the general market, and the emotional ties to the Spokane market