S T RAT E G I C P L ANNI NG AND I MP L EME NTAT I O N

L DR660 S AP RO F E S S O R DAV I D L UCAS

T E AM: CAT HE RI NE ALVARE Z , S HE L L E Y CO RP, S I E ATA DUHART, NAKI A S HI P P

HUGE Digital Strategy Case Study

Primary Focus:

Huge Corporation is a global digital agency headed by Aaron Shapiro that specializes in aiding large companies such as Pepsi Cola, and Comcast in retaining its stronghold within the marketplace that they presently compete in by using certain pretexts like interactive marketing, and media planning.

Primary Focus:

For instance, according to an article posted on AaronShapiro.com it list and speaks about (quite eloquently) on how retailers should understand on how to serve its users.

Primary Focus:

Shapiro states, “When a purchase is on the horizon, consumers subconsciously balance four key factors — trust, convenience, price and fun (TCPF) — to decide where to go. Some people will pay more to buy something that’s convenient; others will buy from a less-than-reputable source if it means getting a good deal. It also varies with the person’s current mindset.” (http://aaronshapiro.com/blog/retailers-mobile-serving-users/)

Let’s take a listen to Aaron Shapiro from Huge as he offers social media tips to shoppers: (03:03)

Primary Focus:

Responding to an Issue/Opportunity

According to research conducted by Leaf Van Boven, and Thomas Gilovich affirms that a customer having fun when it comes to purchasing can take the place over trust, convenience, and pricing over a product by 34% of the consumer not being happy while the other 57% who has fun feels better about their purchases.

Responding to an Issue/Opportunity

According to research conducted by Leaf Van Boven, and Thomas Gilovich affirms that a customer having fun when it comes to purchasing can take the place over trust, convenience, and pricing over a product by 34% of the consumer not being happy while the other 57% who has fun feels better about their purchases. Fun

Pur-chasesNon-Fun Purchases

Examples of Strategies when it comes to mobile purchases which includes the following.

Convenience

Fun

Trust

Pricing

Retailers: Mobile is for “serving” your users.

General Environment Organization Vision Current position in market

Industry Environment Market/revenue and spend (dollars/for digital marketing)

and potential growth Ease of entry into industry Number of companies entered into market in last 3-5

years

Competitor Environment Major competitors

External Analysis

Responding to an Issue/Opportunity

Let’s examine the above example given to us by the above Alan Shapiro. He stated that “retailers like Apple and Wet Seal maximize the in store shopping experience by letting shoppers play with iPads and use kiosks to create outfits, the best digital marketing initiatives maximize the shopping experience online and on the phone. Pizza Hut’s original iPhone application incorporated fun into the shopping experience, letting users shake their device to add sauce to their order of wings. After being on the market for a year, it had been downloaded about 2 million times and had already generated $7 million in sales.”

What is the primary issue/opportunity presented in the case?

How should the organization respond to the issue/opportunity?

How can the organization implement and evaluate the chosen strategy?

Questions

HUG E WAS T HE FAS T E S T-G RO W I NG D I G I TAL AG E NCY I N T HE UNI T E D S TAT E S W I T H A G RO W T H E XP L O S I O N BE T W E E N 2005 AND 2010 F RO M $3 M I L L I O N I N RE VE NUE TO $45 M I L L I O N.

T HE CE O –AARO N S HAP I RO HAS F E LT T HAT T HE G RO W T H F O R W HI CH HE WAS HO P I NG –TO RE V E NUE L E V E L S I N T HE HUNDREDS O F M I L L I O NS-W O UL D RE Q UI RE A S HI F T I N S T RAT EG Y.

What is the Issue /Opportunity presented in this case?

The senior leadership had worked together to define a set of innovative options for strategic growth.

Altering the nature of client relationships

Expanding marketing services

Geographic expansion

Making a push into the healthcare and pharmaceutical markets

The question was: How could HUGE best pursue growth without compromising the formula that had already made it so successful?

TA R G E T I N G T H E H E A LT H C A R E I N D U S T RY W O U L D B E T H E B E S T S T R AT E G Y F O R H U G E .

D E V E L O P A T E A M W I T H E M P L O Y E E S F R O M A L L A R E A S O F H U G E A S W E L L A S O U T S I D E S TA K E H O L D E R S I E ; M D ’ S , N U R S E S H E A LT H C A R E I T F O L K S E T C TO C O M E T O G E T H E R A S A S M A L L G R O U P A N D B R A I N S TO R M I D E A S O N W H AT T H E C U R R E N T A N D F U T U R E N E E D S A R E O F T H E H E A LT H C A R E I N D U S T RY .

E M P L O Y I N G A S M A L L E R H U G E - H E A LT H C A R E D I V I S I O N W I T H I N H U G E

H I R I N G A H E A LT H C A R E T E A M , I E : P H Y S I C I A N S , N U R S E S , H E A LT H C A R E I T S TA F F E T C

How Should The Organization Respond to the Issue/Opportunity

Organization Respond

Analysis of customers will help to understand which groups may be more profitable to serve. Healthcare systems, University settings, pharmaceutical companies, etc

.Market analysis of individuals and their digital use abilities-

what percentage of people would utilize their smart phones to make doctor’s appointments, evaluate symptoms etc.

Find a Large healthcare system with funding that will support

a large overhaul of the digital technology as well as marketing. A large academic well known healthcare system would be ideal first client.

PILOT PROJECT

SELECTION: AUSTIN, TEXAS 1. MOST DIGITALLY SAVVY CITY IN U.S.2. NATIONALLY RANKED HOSPITALS3. UNIVERSITY SETTING

Strategy Formulation

Strengths

High quality labor-intensive creative and technological excellence Flat organization Strong brand value Entrepreneurial culture Strong focus on user experience One stop shop for clients seeking to navigate the digital convergence Handles general marketing strategy as well as the design of digital

products and campaigns, along with technical implementation Reputation with clients as being a trustworthy partner. Novel programs and Initiatives within the company that promote a

desirable work environment Utilized project based engagements or long term retainer

relationships

Weakness

Scarce talent in the marketplace

Conflicting client needs

Moving forward taking on too many projects without the right staff and infrastructure in place would risk lessening the quality of work performed.

Opportunities

Pharmaceutical and Healthcare online Ad spending is projected to increase to 1.52 billion dollars in 2014

Both male and female consumers report that they would utilize digital strategies with their Doctors and healthcare providers.

Healthcare reform demanding Cost containment, High quality care and positive consumer experience along with maintaining profit margins for healthcare systems will drive the need for easy and accessible access to care.

The requirement of Electronic medical records across the country will drive business to the digital companies for assistance in implementing the processes.

Opportunites continued

Lifestyle trends are moving more toward user friendly apps, this is an area that is a growing field within healthcare.

Industry trends show that healthcare is an emerging industry that will be utilizing digital marketing and technology as well as other online products to assist in the delivery of healthcare.

The ability of emerging technology to assist patients in rural and remote areas, ie robots.

Threats

Complex and fluid nature of the relationships with their competitors and complementors

Currently two main competitors –Digitas and Razorfish

The fastest growing group of consumers in the healthcare market are 60 years old and over.

Funding by customers (healthcare systems, pharma) could be potentially restrictive with new regulations on payment from Insurance payors.

Most healthcare systems currently have some software/digital technology and the need to be able to provide interfaces with digital technology and current systems will be huge.

REFERENCES

1. Http://aaronshapiro.com/blog/retailers-mobile-serving-users/"Huge Promotes Stewart To ECD, Chow To CD". Media Post. 30 July 2010. 

2. OMMA Magazine. 1 November 2010.