“Whitebook”: Cross-Marketing Platform for Luxury Brands in Japan

Ad-comm Group Whitebook Cross- commercializeplaceing Platform for Luxury Brands in lacquer 1. What is a Whitebook? What social function(s) does it play in the Marketing strategy of Ad-comms thickening companies? Answers 15 lines maximum. Whitebook is a cross grocerying program, a cartridge that is make in Japan e really 4 months and which displays nine high bread and butter shufflings in nine diverse types of product. The magazine is customized for each lavishness helps. The Whitebook plays an important constituent in price of merchandise strategy as it is a smirch ambassador and CRM tool.As the Whitebook is mainly distri preciselyed through sponsors, the Whitebook grades a pr adjoinified small group of apostrophizeumers but right ones, right at the beginning. Being displayed in the magazine toilet be seen a recognition of being a top opulence brand and be therefore an award. The Magazine styles a strong race in the midst of the brands and the monetary valueu me designers, as the costumers feel privileged to receive special solicitude from the brand. Moreoer the Whitebook organizes event as well, which gathers customers and one brand.Those events gives the opportunity for luxury brands to create a personal kinship (face-to-face relationship) with its customers, by telling its hereditary pattern and answering questions. 2. Take the perspective of the general manager of Porsche Japan. How would you assess the cost effectiveness or ROI of investing 20 million Yen a year to sponsor Whitbook? Would you be leave aloneing to be a sponsor? Why or why not? Answer by utilise a break-even synopsis, and by calculating the expected customer lifetime survey (i. e. odays expected value of a customers purchases over the course of his/her life as a Porsche customer). 1 to 2 pages. a. You essential know what a break-even analysis is this is when your return/revenue masters your investment in other words how many cars to move to repay for the investment in Whitebook? b. Customer Lifetime value refer to the last class definition expected value of a customer over the course of his/her life as a customer = selling price of a Porsche x issuance of Porsches purchased in a lifetime.Be creative by using the data of the lineament and common sense. in that respect is no magic formula. I will take your assumptions into consideration. c. Then the cost effectiveness offer be assessed by comparing to agonistical offerings Porsche sales increased by 4. 55 ( 3000/658= 4. 55 p. 8) in 6 years. For a luxury brand, democratization of the product excessively means loss of prestigiousness and exclusivity. Whitebook is a way to keep the luxury image of the brand by creating a special relationship with the top hat costumers. 20 million Yen represents 2. % of the total marketing budget (p. 8). take for granted that an average price of Porsche is 75 000$ USD , in 6 years they comport sold for 175 650 000$ (75 000 x 2320) . 20 millio n Yen is equalize to 214 241. 04$ USD which corresponds to 1 285 446. 24$ USD in 6 years. In terms of break-even analysis and still assuming the average price of 75 000 $, they need to sell 3 cars (2. 86) (214 241. 04 / 75 000) per year to repay their investment in Whitebook. However, the case mentions that 10% of the panjandrum customers give birth 8-9 Porsches (p. ), therefore we can assume that Porsche confederation sells at least 3 cars per year and therefore sponsoring Whitebook is profitable. In terms of Costumer Lifetime value, we shall still assume the average price of 75 000$ USD per car and the number of Porsches purchased in a lifetime of 8. 5 (8-9 Porsches own over lifetime p. 8). The Costumer Lifetime Value is therefore equal to 637 500 (75 000 x 8. 5). Finally, in terms of cost effectiveness, if we look at exhibit 9, we see that the manufacturers suggested retail price of Whitebook is best advantageous comp bed to other selected print media in Japan.The manufactur ers suggested retail price is relatively low (5 000 000 Yen) compared to the number of pages and the location. Lets take 25ans. The MSRP is 4 200 000 Yen for 2 pages on the back cover compared to 800 000Yen to a greater extent for Whitebook (therefore 1. 19 to a greater extent overpriced (5 000 000 / 4 200 000 = 1. 19) ) for 3 times more pages indoors the magazine for Whitebook. It is then clear that Whitebook is more profitable compared to less costly magazines in terms of cost effectiveness. Moreover 25ans targets womens luxury, however Porsche and fast cars are commonly known to be of mainly great interest for men.Concerning Esquire, the MSRP is 3 200 000 Yen of 2 pages on the back cover, Whitebook is 1 800 000 more (therefore 1. 5626 more expensive (5 000 000 / 32 000 000)) for 3 times more pages inside the magazine. Thus, Whitebook magazine is more profitable than Esquire. Moreover Esquire targets Mens fashion/lifestyle only, however purchasing a Porsche can also bear on wo men (Porsche Cayenne for example). Concerning Nikkei Business, the MSRP is 5 680 000 Yen of 2 pages on the back cover which target business customers. Compare to Whitebook, Nikkei Business is 1. 36 more expensive than Whitebook for less pages. Moreover the Nikkei Business target only business Concerning Asahi Newspaper, the MSRP is 22 500 000 Yen for full page. Compare toe Whitebook, Asahi Newspaper is 4. 5 more expensive. Moreover, Asahi Newspaper targets general public, however Porsche wants to keep the luxury prestige and exclusive image of the brand by investing in a magazine, the target readers doesnt therefore correspond to the main aim of Porsche. In conclusion, Whitebook is the best investment in terms of cost effectiveness compared to competitive offerings. . Put yourself in the shoes of Andreas Dannenberg. Whitebook exploits opportunities (and leverages strength, addresses weaknesses, and counter threats) in the luxury market and advertising industry, and it helps Ad-comm stay ahead of potential capability improvements by Japanese and multinational competitors. What is Whitebook to you? What role(s) does it play in the marketing strategy of Ad-comm itself? Answer by using a SWOT analysis (for Ad-comm) to understand internal and away strategic position. 1 to 2 pages. In terms of Strengths Whitebook enables to be item-by-item from Japanese Players * Doesnt have to be subcontracted by Japanese agencies * buns the right costumers * Plays a role of CRM tool * Create privilege relationships between the brands and the costumers * Maintain the luxury and exclusive image of the sponsors * Create events to build a face to face relationship and build a trust relationship in the long run with VIP costumers - the brand tells stories and heritage to the customer and the Japanese consumption, customers are choosing a brand mainly because of its heritage, recommendations of experts and starts of family and friends. Plays a role of brand ambassador * alter luxur y companies to display the corporate portfolio * Enable luxury brands to make their cash flows easier In terms of Weaknesses * Limited to Japanese market * Limited to the Japanese market * Implementation on planetary market requires global corporate decision In terms of Opportunities * Cross-marketing program * Select prequalified targeted and top-tier customer Create a unique virtual experience for privilege guests as well trough its website and entry key * sign behaviors of target customers * The website tracks behaviors of target customers * Create events which can be an opportunity to dunk a new product to a right target costumer * Enable luxury companies to get new costumers * Work as a CRM tool In terms of Threats * No competitors at the moment because is very selective and the nurture the relationship with the brand. However, competitors can come in the market, target also luxury clientele with more luxury brands or more subcategories * New competitors can come and create other type of cross-marketing platform like a privilege club which enables the brands to meet * New competitors can come an create the same magazine suited for the global market or USA market which number of customers are greater 4. What would you do with the expansion opportunities described at the end of the case (pp. 10-13)? Would you pursue (a) change magnitude the number of sponsors I the current Whitebook? b) replicating the current Whitebook in overseas market or (c) developing an alternative Whitebook focused on the new nervy brand market? Why? Answer with Pros and Cons in 1 to 2 pages. (a) Increasing the number of sponsors I the current Whitebook Pros * Increase flexibility when readiness events * Increase quantity of events (number of events) * Increase quality of events, as more VIP customers and sponsor companies are available * Increase the use of CRM tool * occupy the relationship between brand and consumer more visible Cons Additional cost could offset the fixed costs of production * Losing credibility * Losing trust with the brands * Losing luxury appeal because luxury is found on scarcity and exclusivity (b) Replicating the current Whitebook in overseas market (the best option because) Pros * Minimize additional exploit and attention required to Whitebook * Provide learning opportunity for the account managers * potentiometer introduce new categories in the book * Multinational sponsor already present in the Japanese version can be include in the overseas version * Already implemented in US, SingaporeCons * Theres a small budget required by sponsors * The decisions so fare are regional and not on corporate take aim * Changing the marketing strategy at a global take will be uncontrollable for Whitebook unless they change the whole corporate structure, which affirmable (c) Developing an alternative Whitebook focused on the new edgy brand market Pros * Maintain most loyal costumers * Help to acquire ripe customers * Guarantee of 50 00 0 targeted customers * Involves high-margin brand segments Developing new relationships with new companies Cons * Should direct the target customers on four-year-old customers * Being part of a familiarity takes out their own personality and uniqueness * Because edgy brands target young customers and customers choose interactive marketing tools so edgy brand prefer to invest their marketing budget and events or promotions rather that printing marketing * Change the value of luxury image of the book * Because luxury is based on exclusivity and scarcity, including edgy brands will damage this luxury image