Ad-Comm Group “Whitebook”: Cross-Marketing Platform for Luxury Brands in Japan Essay

1. What is a Whitebook? What role(s) does it forge in the Marketing strategy of Ad-comms client companies? Answers 15 lines maximum. Whitebook is a cross merchandise platform, a pickup that is published in Japan every 4 months and which displays lodge high emotional state targets in nine diverse types of produce. The magazine is customized for each sumptuosity sponsors. The Whitebook plays an important role in footing of merchandising strategy as it is a brand embassador and CRM tool. As the Whitebook is mainly distri exclusivelyed through sponsors, the Whitebook channelizes a prequalified small group of embodyumers but right ones, right at the beginning.Being displayed in the magazine fundament be seen a recognition of being a top highlife brand and be and consequently an award. The Magazine executes a strong alliance between the brands and the costumers, as the costumers feel privileged to receive special trouble from the brand. More everyplace the Whitebook org anizes event as well, which gathers customers and one brand. Those events gives the opportunity for lavishness brands to create a personal relationship ( guinea pig-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.See much Old Age Problem essayHow would you assess the cost military strength or ROI of investing 20 one million million waste a year to sponsor Whitbook? Would you be willing to be a sponsor? wherefore or why not? Answer by victimisation a break-even analysis, and by calculating the expected customer sprightliness measure out (i. e. immediatelys expected value of a customers purchases over the course of his/her life as a Porsche customer). 1 to 2 pages. a. You must know what a break-even analysis is this is when your return/revenue covers your enthronisation in other words how many cars to sell to repay for the investment in Whitebook? b.Cus tomer Lifetime value refer to the last class description expected value of a customer over the course of his/her life as a customer = selling price of a Porsche x number of Porsches purchased in a lifetime. Be creative by using the data of the case and common sense. There is no magic formula. I will take your assumptions into consideration. c. Then the cost effectiveness foot be assessed by comparing to competitive offerings Porsche sales increased by 4. 55 ( 3000/658= 4. 55 p. 8) in 6 years. For a luxury brand, democratization of the product also means loss of prestige and exclusivity.Whitebook is a way to cover the luxury hear of the brand by creating a special relationship with the exceed costumers. 20 million Yen represents 2. 4% of the total marketing budget (p. 8). Assuming that an average out price of Porsche is 75 000$ USD , in 6 years they have sold for 175 650 000$ (75 000 x 2320) . 20 million Yen is equal to 214 241. 04$ USD which corresponds to 1 285 446. 24$ US D in 6 years. In terms of break-even analysis and still assuming the average price of 75 000 $, they need to sell 3 cars (2. 86) (214 241.04 / 75 000) per year to repay their investment in Whitebook. However, the case mentions that 10% of the VIP customers birth 8-9 Porsches (p. 8), therefore we grass assume that Porsche company sells at least 3 cars per year and therefore sponsoring Whitebook is profitable. In terms of Costumer Lifetime value, we shall still assume the average price of 75 000$ 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 set 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 manufacturing businesss suggested sell price of Whitebook is best advantageous comp atomic number 18d to other selected print media in Japan. The manufacturers suggested retail price is relatively low (5 000 000 Yen) comp ard to the number of pages and the location. permits take 25ans. The MSRP is 4 two hundred 000 Yen for 2 pages on the back cover compared to 800 000Yen much for Whitebook (therefore 1. 19 more expensive (5 000 000 / 4 200 000 = 1.19) ) for 3 times more pages inside the magazine for Whitebook. It is then clear that Whitebook is more profitable compared to less expensive magazines in terms of cost effectiveness. except 25ans shoot fors womens luxury, however Porsche and fast cars are normally 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/modus vivendi only, however purchasing a Porsche can also involve women (Porsche chilli for example). Concerning Nikkei Business, the MSRP is 5 680 000 Y en of 2 pages on the back cover which target business customers. Compare to Whitebook, Nikkei Business is 1. 136 more expensive than Whitebook for less pages. Moreover the Nikkei Business target only business Concerning Asahi publisher, 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. 3. 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 deterrent ahead of potential capability improvements by Nipponese 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 external strategic position. 1 to 2 pages. In terms of Strengths * Whitebook enables to be independent from Japanese Players * Doesnt have to be subcontracted by Japanese agencies * Target the right costumers.* Plays a role of CRM tool * Create privilege relationships between the brands and the costumers * moderate the luxury and exclusive image of the sponsors * Create events to build a face to face relationship and build a trust relationship in the massive 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 experiences of family and friends. * Plays a role of brand embassador * Enable luxury companies to display the corporate portfolio * Enable luxur y brands to derive their cash flows easier.In terms of Weaknesses * curb to Japanese market * Limited to the Japanese market * Implementation on international market requires world(prenominal) corporate decision In terms of Opportunities * Cross-marketing platform * Select prequalified targeted and top-tier customer * Create a unique virtual experience for privilege guests as well trough its website and entry key * Track behaviors of target customers * The website tracks behaviors of target customers * Create events which can be an opportunity to launch a invigorated 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 maintain 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-marketin g 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 ground forces 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) increasing the number of sponsors I the period Whitebook? (b) replicating the current Whitebook in overseas market or (c) developing an choice Whitebook focused on the new jolty brand market? why? Answer with Pros and Cons in 1 to 2 pages. (a) Increasing the number of sponsors I the current Whitebook Pros * step-up flexibility when planning events * Increase quantity of events (number of events)* Increase quality of events, as more VIP customers and sponsor companies are ready(prenominal) * Increase the use of CRM tool * Make the relationship between brand and consumer more visible Cons * Additional cost could offset the fixed cost of production * Los ing credibility * Losing trust with the brands * Losing luxury appeal because luxury is base on scarcity and exclusivity (b) Replicating the current Whitebook in overseas market (the best option because) Pros * Minimize additional effort and attention required to Whitebook * offer learning opportunity for the account managers.* Can introduce new categories in the book * Multinational sponsor already present in the Japanese form can be included in the overseas version * Already implemented in US, Singapore Cons * Theres a small budget required by sponsors * The decisions so fare are regional and not on corporate level * Changing the marketing strategy at a global level will be uncontrollable for Whitebook unless they change the whole corporate structure, which possible (c) Developing an substitute Whitebook focused on the new edgy brand market Pros * Maintain most loyal costumers * Help to acquire innovative customers.* Guarantee of 50 000 targeted customers * Involves high-margi n brand segments * Developing new relationships with new companies Cons * Should redirect the target customers on young customers * Being part of a community takes out their own personality and uniqueness * Because edgy brands target young customers and customers prefer interactional 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.