KIAI Case Study 1

KIAI case study

[Name of the student]

[Name of the institution]

KIAI Case Study 2

Table of Contents
Executive summary.....................................................................................................................................3
1. Introduction.............................................................................................................................................4
2. Situational Analysis.................................................................................................................................6
PESTEL Analysis.................................................................................................................................7
Porters Five Forces Model...............................................................................................................11
SWOT Analysis..................................................................................................................................16
Marketing Mix Analysis.....................................................................................................................23
3. Objectives of Kiai..................................................................................................................................27
4. Appropriate strategies for the achievement of objectives.......................................................................29
Positioning via branding...................................................................................................................29
Social Media marketing strategy.......................................................................................................31
Product development.........................................................................................................................33
Standardization..................................................................................................................................34
Adaptations........................................................................................................................................35
Change management strategy............................................................................................................36
Brand equity evaluation.....................................................................................................................40
5. Financial analysis..................................................................................................................................46
6. Conclusion.............................................................................................................................................49
References.................................................................................................................................................51
KIAI Case Study 3

Executive summary

This report is based on the case study of Kiai marketing group. kiai marketing group is an idea of

a full time student at Western; Mills. This report explains that kiai is a small business which

offers innovative advertising service to the clients. However, the business is at introduction stage

in the product life cycle. This report is based on the idea of Mills that is, using the back of the

laptop for advertising the brands. This unused space was used by Mills. Laptop was selected

because the use of laptop is now common in London and student carry laptops on campus. This

report analyzes the situational analysis of kiai which includes PEST analysis, SWOT analysis

Porters five forces analysis, and Marketing Mix analysis. Some appropriate strategies are listed

down and thoroughly explained for suggesting kiai how to adapt and follow the strategies for

achieving the main objectives. This report focuses on the market value, market share,

organization growth, customer satisfaction, customer retention, etc of Kiai. If the marketing

programs align with the customer satisfaction, market performance of an organization

strengthens. There are several marketing tactics that increases the market performance of an

organization. Thorough environmental scanning helps organization in satisfying the customers

and retaining them. The satisfied customers become loyal to the company and customers base of

organization gets strong. The retaining of customers makes an organization productive and

profitable. The SMART objectives of marketing enhance business performance. If planned

strategies and objectives align with each other, a company expands and grows. The cost, cost per

impressions, cash flows, and Profit is calculated. Lastly, a brief conclusion is given.
KIAI Case Study 4

1. Introduction

Kiai is a new marketing company which offers unique and innovative marketing

solutions to the clients. Kiai is a service firm which provides intangible services to the clients.

The service companies provide services to the customers which cannot be seen therefore,

customer satisfaction is the most essential element which is focused by all service provider

companies. Kiai is an idea of Roger Mills, a full time student at Western. Mills had a lot of

business ideas for doing a new business in the summers. Kiai was an idea of Mills to open a new

marketing small business by spending his savings and devoting his break of summer semester to

make his new business, a successful business. The implementation on the idea of Kiai came into

existence when Mills participated in a competition known as The Impact Apprentice. This

competition took place across Canada. In this competition, 32 students participated who were

the top students of Canada to test their entrepreneurial skills and business sense. This

competition was a televised competition. Roger Mills participated with the top talented students

of Canada and attained ne position along with its team known as Team Kiai. Thus, this

competition arise the managerial and entrepreneurial skills of Mills and his passion for

entrepreneurship increased. Finally, kiai came into existence which was just an imaginative

entrepreneurship business of Mills. Kiai is a new business in the market of marketing agencies

for marketing and promoting the brands by using different marketing ideas to position a brand in

the minds of the customers. Kiai is a marketing consulting firm which is a small business but has

an aim of providing marketing services to the big business and generating higher revenues. Kiai

provides services of branding, advertising, promotions, product designing, and market research

to provide effective solutions to the businesses. However, kiai wants to enter into the market with

a unique idea of marketing. It is seen that there are number of methods of marketing a brand but
KIAI Case Study 5

kiai has come up with a new idea that is using the lid of the laptop for marketing and promoting a

brand. This new idea was generated when Mills observed that majority of students in western

used their laptops in the classrooms, cafeteria, and across the campus. This observation ad

scanning led to an opportunity that is using the back of laptop lid for the purpose of

advertisement. This unused space can be use as an advertising or promotional space. This

opportunity motivated Mills and Mills designed a laptop skin. This laptop skin was a laminate

cover which could be affixed at the back of the laptop lid. There were ten university students

involved and worked as a team for exposing their laptops to the viewers to market a brand. This

branding technique was unique which could have captured the attention of the people. The team

of kiai used laptops in different location like in college, classes, family, and other places. So, this

idea of advertising a product by displaying the picture at the back of the laptop was a revenue

generator idea. Western was located in Ontario in London, therefore, the main target market of

kiai was the small businesses located in Ontario in London. London is the sixth largest and

populated city in Ontario and tenth largest and densely populated city in Canada. Therefore, the

target market that was the small businesses were located in London. Moreover, the small

business was favored by the government of London; the government of London supports new

businesses to enter in the market and compete with the competitors.

The current position of kiai in the market is a new entrant small business. It is at its initial

phase of a business that is kiai is at its introduction stage in the product life cycle. There are

some competitors of kiai in the marketing field who are specialized in offering marketing

services to the firms. The case study shows that kiai has a weak position in the market as it is at

its introductory stage where no one knows about this small business and there is no awareness.
KIAI Case Study 6

The analysis of the case shows that the main problem which Mills is facing is the

promotional technique for marketing kiai among the small businesses by using a low cost

method. Moreover, another problem of the client is to find out a long term client who can make a

long term contract with kiai so that kiai can pay the tem people who are associated with Mills

and working in a team as a part-time student job. As, kiai is a new and a small business,

therefore, there are several problems which has to be faced by kiai. To create the awareness of a

new business is the most difficult task. There are number of marketing firms offering valuable

marketing services in London, therefore, the promotional strategy which will be adopted by kiai

should be strong enough to catch the attention of the clients. Moreover, the client wants to know

the cost of the promotional activity, charges charged to the client, and what charges should he

pay to the team working for marketing the skins at the back of the laptops.

2. Situational Analysis

Situational analysis is an analysis of the past and present information on the social,

technological, economical, and political factors affecting the organization. Situational analysis

analyzes the internal and external forces that affect on the performance of organization and has a

direct impact on the strategies adopted by the business. Situational analysis assesses the strengths

and weaknesses of the business that in which aspect a business is strong and where does it lack.

Moreover, it also analyzes the future opportunities present in the market which can be availed by

a business and can be converted in to strengths. It also analyzes the threats for an organization.

These threats are the negative forces which suppress the business activities (Clarke, 2005).

However, smart businesses can also lessen these threats by converting threats into opportunity

and opportunity into strength. Most famous models which are used by businesses for situational
KIAI Case Study 7

analysis are PESTEL analysis, Five Forces model and SWOT analysis. There are many external

factors known as externalities. These externalities define the organization that what external

factors affect the organization (Kimalu, 2002). PESTEL model is an external analysis model.

When external analysis is completed, a new business goes for internal analysis. SWOT analysis

and Five Forces model is internal analysis model.

Internal and external metrics are essential for measuring the business performance. Not

all the companies measure its stability by judging the performance in both metrics. In marketing

metrics three metrics are commonly judged by businesses; market metric, customer metric, and

competitiveness metric. In market metric, organizations judged performance based on its growth

and share. Market share and market growth helps marketers to know the competitive position of

their organization and how firm is operating against its competitors. In customer metric,

customer satisfaction and customer retention are two sources of performance evaluation.

Customer satisfaction indicates the repurchase behavior of customers and if customers are

dissatisfied, the marketer can understand the reason and can improve products to meet customer

demand. Customer retention indicates the future growth and cash flows. In competitiveness

metric, product performance and service quality are the indicators. Product performance shows

that how well a product is purchased, repurchased, and recommended to other users. Quality of

product and service admired by the customers makes customers post- purchase behavior

positive and customers tends to buy the product again and again (Hendriks, 2010).

PESTEL Analysis

PESTEL analysis is a tool for capturing the understanding of the political, social,

economical, technological, and legal aspects. It aids the businesses to know the factor which
KIAI Case Study 8

could positively or negatively affect on the performance and image of a business in a business

market. If these factors are left unmanaged, business can face destruction (Murray-Webster,

2010). Following is the PESTEL analysis of kiai:

Political and Legal Factors

Taxes are imposed by the government which affects on the profits of the company.

Fluctuation in the taxes rate directly affects on the business. If the government imposes low tax

rates on the new businesses, the savings will be beneficial for the new businesses as they have to

pay low prices (Global data, 2010). As, kiai is a new small business which is based on sole

proprietorship; thus, Wills has to pay the tax if it legally opens its business. Trade issues have

always affected the business activities. A government imposes tariffs on import and export. It

results in loss of companys equity which becomes inconsistent. After 9/11, the trade relations

between United State and other countries have become weak. Thus, such internal trade activities

affects on the opening of a new business. The international government must be considered while

opening a business into as it has a significant effect on the sales. If Government reduces the cost

of licensing, the cost of production also gets lower, and it is favorable for the businesses as

purchaser will have to pay less for the products. Thus, kiai can be benefited if government

reduces the cost of licensing, kiai will be able to hire more part time student for advertising

purpose that is, carrying the laptops for exposing the brand to different people. Changes in

government bring changes in legislation and taxation policy of a country. The countries that are

in political turmoil must be approached cautiously by the new businesses. The stability of the

government has a direct affect on kiai. If the government will not be stable, a new business

cannot become successful and cannot stabilize its returns. The provincial government of London

encourages small businesses so that new businesses can present their products and services. As
KIAI Case Study 9

the student government at Western has put a restriction on advertising agencies to advertise the

products within the campus; Mills has the opportunity to deal with those businesses who want to

advertise their products and services within the college as Mills is a student of Western and he

can spread the word of those brands who want to get in the market of sought-after.

Economic Factors

Rise in interest rate is unfavorable for new business and vice-versa. Increase in interest

rates put-off the plans of new business for spending on the marketing activities As interest rate

increases the mortgage repayments that affects on the disposable income of a consumer and

consumers spends less on luxury items. During an inflation period, the prices of products

increase. The unit cost of a product will increase during the inflation period. A new product list is

made with the updated prices. A firm that borrows money in inflation period will pay less return

in real terms. Low economic growth affects on the sales of products and services. When an

economy is growing slowly, the disposable income of a consumer also decreases. When an

economic growth is slow, consumers confidence on products also deteriorates (World Bank,

2010). Employment law varies according to the government and law policy of the countries. In

some countries, employees work on the basis of wages per hour, some work on the basis of

wages per week and so on. All these considerations must be considered by Mills as he will pay

his energetic team for the role they will perform. The economic performance of London is based

on Foreign Direct Investment. There are many local businesses in London who work and operate

in a limited promotional budget and are cautious to choose the effective innovative promotional

strategies for attracting the right clients at the right time at the low cost. For Mills, it is difficult

to find out such client from a huge market. If Mills want to target a local business, he has to
KIAI Case Study 10

spend more on the promotional schemes to increase the effectualness of the services offered by

kiai to the local business market.

Social Factors

New business focuses on the countries and locations where attitude of people towards life

and work is advance and good. For instance, the countries where attitude of people toward work

is poor, they will go to canteen for lunch. Whereas, in countries, where attitude of people is

advanced they go to cafes. Mills target those clients who want their products to get in the sought-

after market. The lifestyle of consumers is an important factor that varies from culture to culture.

People with high living standard pay premium prices for advertising their products in order to

capture the attention of the customers. Educated people and competent people who are

professional prefer to maintain competitive edge keeps on promoting their products by using

marketing companies as intermediaries. Location is a social concern. Companies choose those

marketing intermediaries who are accessible and reachable for the customers whom those

companies want to target. Kiai focuses on those clients who are willing to penny for marketing

their products; therefore, income distribution is important. A consumer who has high income

budget can easily avail the marketing services of kiai.

Technological Factors

Technology is the requirement of sustainable business in todays world. Businesses must

upgrade its systems and processes for improving the delivery system and increasing efficiency of

speed of customer service (Buckstein, 2010).Technology rate is rapidly changing. It is must

faster than thirty years ago. Nowadays, technology is abruptly changing because of the dynamic

environment. These changes are occurring because of the internet that has increased the speed of

communication across the globe (Fox, 2012). By following technology and moving with the
KIAI Case Study 11

technology, sustain competitive advantage of business. New small business should keep on

researching because research and development helps the businesses to find out the new

opportunities and changing taste of the consumers. The use of laptop is increasing day by day

among students in colleges and universities. There are many factors which have been linked with

laptop use in higher education in London (Lauricella & Kay, 2010). So, students use it for the

purpose of communication, learning, and achievements. The idea of Mills is a unique idea that is,

advertising and marketing the brand by using the laptop lid as a space for advertisement. This

innovative technique of promoting a brand by using an innovative machine is a deadly

combination of Mills to optimize the profits and reach to his projected profit by utilizing this

innovative solution of promotion and marketing.

Porters Five Forces Model

Roy (2011) stated that every industry is different in terms of size, structure, profitability,

revenue, customers needs and wants, customer demand, growth, alternatives for customers,

distribution channels, intermediaries, and product life cycle. Five forces is a model designed by

porter to identify the negative force which affects on the business. It is an external analysis of the

industry that gives an overview of the industry in which kiai is operating. There are five forces in

a model of Porter. These forces are; threat of new entrant, threat of substitute, bargaining power

of buyer, bargaining power of supplier, and rivalry.

KIAI Case Study 12

Threat of new entrant

Threat of new entrant is when a new competitor enters in the market. If a new entrant

enters in the market with innovative structure and ideas, a new entrant may gain the market share

and competition will get tougher. However, if there are barriers on entering the market, the

existing firms will envoy their competitive positions in the market. If barriers to entry are low,

new entrant will enter in higher ratio (Hill & Jones, 2007). Mills is also a new small business in

the marketing service industry, if a new entrant enters with more innovative promotional

services, kiai will not be able to maintain its competitive advantage of offering a unique

promotional strategy. In the marketing service industry, entry of new competitors is easy as there

is a common technology all the companies can access the distribution channels, there is no need

of extensive investment, customer loyalty is not strong, and there are many brands of marketing

agencies.

Threat of substitutes

Threat of substitutes is another force that is; when other competitors offer the products or

services for satisfy the same need of a customer. It becomes a threat for the competitors. There

are many direct and indirect competitors involved in threat of substitute. The threat of substitute
KIAI Case Study 13

decreases the profit. It depends on the loyalty of customers, cost of switching, willingness of

switching to other brands, etc. (Hill & Jones, 2009). Kiai has a threat of substitute as there are

direct competitors of kiai from the press industry such as London Free Press, Western News, and

The Gazette. These three competitors are the substitutes of kiai as these three companies offer the

same service and fulfill the same need of the clients. These three newspapers are most famous in

London which is read by thousands of people in London. These brands have customer awareness

and strong customer base ethic is a threat for kiai.

Bargaining power of buyer

Phadtare (2011) defined; bargaining power of buyer is the price paid by the buyers. When

new entrants come into the market, the numbers of suppliers increases which ultimately increases

the barraging power of the buyers. Similarly, when there are less number of suppliers or a

monopoly, the bargaining power of buyers will decrease. For instance, if customers are getting

same kind of service from the competitors at lower price; the bargaining power of buyer will be

high as a buyer will demand for the product at a lowest cost due to the presence of numbers of

suppliers in the market. In the case of kiai, the bargaining power of buyers is high as there are

many competitors who are offerings same marketing services to the clients for advertising and

promotion. For instance, The London Free Press is a daily newspaper in London which has

226000 readers each weekday, 140000 readers on Sunday, and 250000 readers on Saturday.

Moreover, there are 65000 readers on internet who regularly read the newspaper. In this

newspaper, different brands have posted their ads. Secondly, Western News is a free weekly

newspaper and an electronic source of news about Western. This newspaper caters to the staff of

western. These two competitors example show that these companies are existing companies and
KIAI Case Study 14

has customer base, therefore the bargaining power of buyers is high as more marketing

intermediaries are entering in the market.

Bargaining power of suppliers

Bargaining power of suppliers is the price charged by the suppliers to the buyers. When

there are few suppliers, bargaining power of suppliers is high as customers do not have more

choices. The bargaining power of kiai is less as there are three strong competitors in the market

who are providing market exposure to the people. The price charged by kiai should be less than

the price charged by other suppliers.

Rivalry

Rivalry is a market full of competitors. There are numbers of companies offering same or

similar products to meet the same needs of the customers and cater the same market. There are

economical and political issues involved. If any new competitor is coming in the market so what

fees have paid by the new company? In the business market, there are direct and indirect

competitors competing with one another to maintain and sustain their competitive advantage.

However, it is difficult for a new entrant to achieve competitive edge over the rivals in the

market. For kiai, there are three strong rivals; The London Free Press, Western News and The

Gazette. LFP is the major newspaper in Ontario. It has a total market of 616000 readers.

Moreover, 65000 readers are the newspaper online. It means that LFP is the strongest rival if kiai

who had virtual and as well as traditional market of newspaper. Western News is another medium

of exposing information to the faculty and staff only. Around 10000 copies of Western News are

distrusted per week in campus. The Gazette was a student newspaper in which information was

exposed to the students. Approximately, 44000 newspapers were distributed to the students per

week. These three newspapers charge to the clients for advertising according to their market
KIAI Case Study 15

value. The Gazette charges $120.4 for one-sixth of a page and $1430 for a whole page. Western

News charges $31.64 for a half page advertisement and $497.2 for the advertisement of a full

page. Lastly, the major and biggest competitor, The London Free Press charges $3286b for a

onetime advertisement advertised on the front page of the newspaper in one weekday. LFP

chares $1441 for the black and white advertisement advertised at the front page for a weekday.

For small advertisements, LFP charges $386 for a weekday. LFP also offers online advertising to

the customers. Online advertising is increasing and online advertising has become a trend which

is heavily used by the companies as use of internet is increasing. E-commerce has been adapted

by the companies for marketing their products and services online. E-commerce had been widely

accepted by consumers since 1990s and its use had been rapidly amplified. E-shopping is known

as online shopping where customers buy products online via internet. Two types of products are

sold under e-commerce that is; digital product and physical product. E-shopping ordering

process includes a series of step in which, customer search for the product by going on e-bay

sites, and then selects the product (physical or digital), negotiates for the price and then finally

place the order of desired product. At the end of ordering process, confirmation is received by the

customer, it is a digital process. Ordering process can be in digital and physical way. Delivery

mechanism is the last feature of e-shopping. It can be in both physical and digital terms. For a

physical product, delivery of good is physically received such as delivery of perfumes and

clothes. In case of digital product, customers do not get delivery (Ahn et al., 2004). The whole

process of e-shopping is dependent on the customer relationship management because the

satisfaction of customer is more important in online business than in physical business. LFP

captures the attraction of businesses via traditional and modern methods of promoting the

products.
KIAI Case Study 16

SWOT Analysis

SWOT analysis is an internal analysis model which identifies the strengths and weakness

if an organization. SWOT analysis further scans the environment thoroughly to know the

opportunities and threats in the environment. When the factors are identified by carrying out a

SWOT analysis, a company can eliminate the weaknesses by strengthening its strengths and can

easily exploit the opportunities present in the environment. Internal appraisal helps in

determining the strengths and weaknesses of an organization, whereas, external appraisal helps

in determining the threats and opportunities for the organization. Thus, SWOT model is

applicable to both internal and external analysis, here SW deals with internal analysis and OT

deals with external analysis (Dyson, 2004). Following is the SWOT analysis of kiai:

Strengths

Kiai is a small business which is based on a unique idea of Roger Mills, a full time

student at Western. The main strength of kiai is the unique idea of promoting the products.

Marketing is a basic need of all the businesses as all the organizations want to market their

products and services by using various effective promotional strategies to target the market and

earn profits. The unique idea of promoting and advertising a brand of kiai is the mist innovative

idea. Kiai proposes to use the back of laptop kid to advertise the brands. This laptop lid is an

unused place which is utilized by kiai for advertising the brands. This is the core strength of kiai.

Moreover, marketing intermediaries are playing a significant role in the industry. These

intermediaries are outsourced by the organizations for the management of marketing activities.

The trend of outsourcing marketing intermediaries is increasing day by day and it is moving
KIAI Case Study 17

towards a growth trend (Roberts, 2010). This is the plus point for the kiai and it can make its

place in the marketing intermediaries market as marketing intermediaries are playing an essential

role in marketing the famous brands. Marketing channels are the medium of communication

between the company and the customers. Marketing intermediaries know the target market,

different customers segments, and preferences of customers.

Strength of kiai is the high demand of customers. Most reputable organizations outsource

the marketing activities as it is a cost effective method for managing the promotional and

advertising strategies. Most of the companies have outsourced brainy marketing activities such

as promotion and advertising. A research as conducted in 2004 on B2B marketing activities, it

was concluded that more than 53 percent of the companies outsource more than half of the

marketing activities. Aston Group is a British firm which analyzed that outsourcing is annually

growing by 10 percent. The most common operations which are outsourced by the firms are; call

centre operations, direct mail management program, e-mail management program, web

management, and database management. Web management, direct mail management, and e-mail

management are the three operations which are related to marketing activity. For instance, Sony

has outsourced its web marketing program. Sony outsourced its marketing activity when it

wanted to sell its services to the customers, market new and high-end products in the market, and

build a strong customer base. Sony outsourced its marketing operation because it believed that it

does not possess these skills within the organization (McGovern & Quelch, 2005).

Kiai gives an opportunity to the businesses to market their brands on campuses. On

campus students is the target market of most of the brands but they lack to target them as student

government of London has put restriction on the companies not to promote their products on

campus. Thus, kiai provides a chance for such companies to promote their brands by lacing their
KIAI Case Study 18

advertisements on the back of the laptop that is brands will be advertised in the form of laptop

skin. The team of 10 members of kiai will ace these brands ads on the laptop lids and will use

their laptops during classes, in cafeteria, and around the campus. This is strength of kiai. This

unique form of advertising is a competitive advantage of kiai.

Kiai focuses differentiation strategy which is strength of kiai. Differentiation is a Porter

generic strategy in which products and services carrying unique attributes are introduced by the

organizations. Such products and services are valued by the customers and customers perceive

such products and services to have better quality than the competitors. Usually, firms charge

higher prices for differentiated products because customers do not find substitute of such

products and pay premium prices. Firms who succeed in differentiation strategy are; accessible

to the scientific research, creative and skilled production team, reputed corporation for

innovation and customer satisfaction, and capable and competent sale steam to deliver accurate

and clear message to the customers to reflect its strength. Kiai offers innovative advertising

service at a lower cost as it hires the students for working in a team plus Wills has a tight

financial budget, hence, the cost of production and cost of selling will also be less. As,

advertisement via laptop sin is a new kind of marketing strategy, so, kiai will enter in the market

by charging low price to its clients.

Weaknesses

Kiai is a new brand in the market and lacks customer awareness. Kiai is at its

introduction stage in the product life cycle, thus, people do not know abut the new brand. a new

business takes tie t build its image and position in the market because existing businesses has a

market share which customers are loyal towards the existing brand due to the lack of awareness

of kiai, potential customers may not be attracted. Kiai has a target of finding its first potential
KIAI Case Study 19

long term customer but due to lack of awareness of the firms, this marketing agency may not

catch the attraction of the small and large businesses. Barroso and Llobet (2011) identified that

consumers purchase those products which they have already used in their past or they know

about particular brand in a product category. Promotions make product visible in the eyes of the

customers and customers buy such products more. It shows that the products those have

awareness in the market among the customers are preferred more by the customers as customer

know about the organization, brand quality, features, benefits, and utility level.

Another weakness of kiai is the limited financial budget. Mills have a limited budget to

start his business because he is a student whose personal savings are less. The amount that will

be paid to the team members will not satisfy the team members as Mills will pay $10 and $25

whereas; the average salary of a student is $100 per week. Mills have also limited budget for the

promotional activity. There are a lot of promotional activities which are needed to be focused by

Mills due to limited budget; Mills has to carefully select the promotional strategies.

Mills is a student and he will not be able to give all his time to his new business which is

a weakness of kiai. A new small business which is in its establishing phase needs a strong

planning for running it. A business becomes successful when proper inputs are invested in it. If a

business lacks in any input such as money, employees, skills, equipments, technology, time, etc.,

such business will not be able to maintain its mage in the market and will not be able to target the

right market. Time is the most essential factor which is a basic need of a newly started business.

Hence, time management is a weakness for kiai in the future. Wills will manage the business

during his off days but he will not be able to manage it for a long period. Time management is

necessary for every kind and type of business. No business can attain a successful position in the

market, until it does not manage its activities properly. Time management is directly related to
KIAI Case Study 20

profitability, productivity, competitive advantage, and market value. If an entrepreneur gives

proper time to his business by dividing the activities in a sequence and dong all work step by step

in a sequence, such entrepreneur knows how to manage his time. Entrepreneurs who invest their

skis, capabilities, knowledge, and time in running a business, such entrepreneurs are regarded as

successful entrepreneur. This is a weakness of kiai as Wills cannot devote all his time to his

work.

Opportunities

Expansion is an opportunity for kiai. Mills consider expanding kiai in Western and in

more universities with a large group of team to attract a good client owing a large business and

has well developed market name. kiai crave to build the customers base strongest as much as it

could be profitable for their organization. The company has to implement strongest marketing

strategies to attract the customers in other universities to purchase the laptop skins for the

purpose of advertisements. Expansion includes environmental analysis, segmentation and target

profiling. For the expansion of kiai in other universities, various standards have to be adapted to

penetrate the product in the market and make it known and desirable for customers. All the

marketing strategies such as positioning, promotional, branding, communication, distribution and

pricing strategies should be according to UK standards.

Nowadays, companies are bringing technological changes in their operations. Marketing

is a process which captures the attention of customers by exposing colorful, attractive, and

unique advertisement. Unique advertisements include proximity, subliminal advertising, figure

and ground principle, closure principle, zeigarnik effect, restorff effect, punishment ads, positive

reinforcement ads, negative reinforcement ads, and fantasy ads (Kapoor, 2003). These effects are

the innovative and unique forms of advertising which are introduced by the marketing firms to
KIAI Case Study 21

promote and position a brand in the minds of the customers. Innovation management is

necessary for any organization to develop more and flexible facilities for their clients. The public

sector in UK has an enormous scope to integrate with their customers. By joining all of its

components it becomes a biggest business of the world with outstanding assets and capabilities.

The ways of innovation to survive with current fiscal pursuers and trying to provide more

facilities to the customers and trying to focus more and more about the needs of their customers

in superior collaboration (Afuah, 2003). The intricacy that can be an intimidating obstacle to

innovation can equally offer unusual scope to convey to major reimbursement from already

joined innovation athwart organizational boundaries.

One more opportunity than can be availed by kiai is that it can go for joint venturing.

Joint venturing is combing business with other developed company and introducing something

together. Here both the partners have equal benefits and losses. As joint venture has the

maximum advantages like ownership remains intact, cultural issues are resolved, and resources

of both the companies will be involved along with the personnel. There is more room for

learning in this strategy which is necessary for understanding a new market. But with the

positivity it is necessary to keep in mind some negative factors as well like joint ventures gets

difficult to manage as two companies are involved including their workers and managements.

Risk is greater in this strategy as a partner is involved which if something went wrong may

become your competitor in the same business like difference in opinions, decision taking and

controlling power (Roy & Oliver, 2009).

Threats

Competitor is the main threat for kiai. There are three main competitors of kiai; The

London Free Press, Western News, and The Gazette. These three competitors are the direct
KIAI Case Study 22

competitors of kiai. In the local area of Ontario, LFP is the biggest press and has the lowest CPM

and a huge group of readers. The readers of LFP are categorized into two categories; online

readers and newspaper readers. It offers low cost advertisements wit a minimum contract for six

months. On the other hand, Western News and The Gazette are the on-campus newspapers.

Western News covers a large area but the target market of Western News is faculty and staff. On

the contrary, The Gazette targets students but the cost of full page advertisement associated wit

The Gazette is relatively higher than the Western News. Cost per impression of The Gazette and

Western News is modest among all the press competitors. Booth and Orientation week pages are

also direct competitors of kiai. These both methods of advertising are seasonal packages. These

two methods take 5 day period. The main advantage of thee two methods are that these two

methods gives a great exposure of business on campus the cost of these two methods is high and

CPM is also high. Hence, booth and Orientation week pages are costly comparatively other

advertising campaigns. One more competitor of kiai is Immobile Poster Campaign which is a

relatively expensive and it is an inflexible campaign. Besides indirect competitors, radio

campaigns and TV campaigns are the indirect competitors of kiai. In Ontario, these two

competitors have its own worth because these two sources of advertising are traditional method.

Young generation such as college students are not attracted by these two traditional sources of

advertising. Mills should focus on a low CPM and modest price to lessen this threat and

converting threat into an opportunity and finally opportunity into strength of kiai.

Another threat for kiai is the shrinking of marketing budget. If the marketing budget

shrinks, companies will not freely spend money on advertisements and promotions. Shrinking of

marketing budget has a negative impact on the marketing agencies. When companies will limit

their marketing budget, marketing agencies will not get enough outsourcing operations and the
KIAI Case Study 23

bargaining power of marketing agencies will deteriorate. Shrinking of marketing budget is a

threat because it will results in less productivity, profitability, and revenue. Fernandez (2012)

stated that the marketing budgets are shrinking and are affected by the crisis going on in euro

zone. GMI shows that television has reported its weakest return in 2011 which was 44.2 points,

radio on 39 points, press on 33 points, and outdoor marketing activities on 46.4 points. These

figures of global marketing index show that all the marketing activities for advertising and

promoting the brands have been declined due to the shrink in marketing budgets of the

companies which is generating lowest and weakest returns.

Lastly, new entrant is also a threat for kiai. Advertising industry is a growing industry

even if it shrinks because advertising is a fundamental phenomenon of marketing activity which

can never be stopped. During the inflation period, brands do not stop marketing their products.

There are multiple sources of advertising and all channels are full of advertisements. Therefore,

most of the entrepreneurs decide to enter in a marketing industry to startup a small marketing

business that has least risk in the industry. In Western, there is a high competition because of the

existing competitors and if, new company comes up with a unique idea, adhocracy structure, and

high financial budget; such new entrant can adversely effect on the development and progress of

kiai because it is in its introduction phase.

Marketing Mix Analysis

It is commonly known that marketing is a game and there are 7 Ps of marketing; product,

price, placement, promotion, people, process, and physical evidence. These 7 Ps are the tools

that are needed for playing the game between the buyers and the sellers. Buyers and sellers

exchange values for satisfaction that results in the profitability. Product, price, placement, and
KIAI Case Study 24

promotion are the traditional Ps used for goods, whereas, people, process, and physical evidence

are the extensions used for services. If these 7 Ps are properly managed by the marketers

through the use of 4 Cs, it means an organization is working and managing the marketing

activities effectually that results in the increased profitability, growth, and market value of an

organization (Richter, 2012). Customer solution is related with the first P that is product. The top

marketers search for the problem of the customers, identifies the problem, create solutions

(goods or services) for the solving the problem, communicate the message to the customers

about the goods or services, and finally delivers the value to the customers for satisfying their

needs. Customer cost is connected with the price, that whether the customer can bail or not. It

depends on the purchasing power ad whether the product is that much worthy or not.

Convenience is connected with the placement. It is then placement of product that where it is

place, so it is about how conveniently a product is placed and available for the customers in

nearer locations. If the product is readily and conveniently available in the market, customers get

satisfied. If a product is difficult to get by the customers, customer cost as well as customer

solution increases for the business. Communication is related with the promotion that is

communicating with the customers for solving their problems, giving them solutions, and

marketing the products to inform the customers about the goods and service (Haberer, 2010).

If all the Cs are properly managed by the marketers, the business can grow and profits

can be gained by the organization through the management of marketing process that holds the

customers and their solutions together.

Product

Kiai is offering a service of advertising by posting the advertisements of a brand on the

back of the laptop. This is a very unique and creative idea. This method is fashionable and trendy
KIAI Case Study 25

and is acceptable for the young generation also, whereas, tradition advertising methods are not

preferred by the young generation.

Price

Kiai is a new company; therefore, it does not have any sales record. Mills has to compete

with the stronger existing competitors in London. Mills want to earn the projected profit of

$5000, Mils chosen the price and CPM to be lower than the competitors in order to capture the

attention of customers. Western remain open for eight month that is, 32 weeks. However, there

are 4 weeks off in a year. It means that 28th is the past operating weeks. Kiai wants to setup its

price and cost less than it competitors especially from The London Free Press. The calculation of

price shows that the cost or the rice which will be charged to the students is $400. Moreover,

CPM is much lower than the CPM of The London Free Press, The Gazette, and Western News.

The cost charged by The London Free Press is $45 and kiai is offering a lower price than the

competitors.

Placement

The members of Mills team will place the advertisements on the back of the laptop that

is, at the lid of the laptop moreover, same advertisement picture will be used in the background

of the desktop. This improvement is made because students sitting in a class usually do not look

at the back. If the members of Mills use wider screen laptop so the students sitting at the back

can easily look at advertisement which is placed on the desktop of the laptop. Furthermore, it is a

cost free method as pictures come along with the design used for the laptop skin. The members

of Mills team disbursed across the campus and record the time and place of exposure and how

many viewers have viewed the skin.

Promotion
KIAI Case Study 26

Promotion is one of the Ps of marketing mix. Promotion takes place through

communication. Communication should be effective that positions the brand in buyers mind

because it is used for familiarizing customer with the brand. For promoting the brand

organization talks to the targeted customers and convey messages about brand benefits,

attributes, functions and values. The core concept of promotion is to convince the customer to

buy the product (Fourie & Ball, 2012). Promotional strategies that commonly used are branding,

direct marketing, advertising, and public relations.

A mass media is used for advertising. Both TV and paper advertisements are used which

give full description of a brand attributes and its offerings. Ads full of colors to catch customer

attention and its timing are commonly in between the daily soaps, reality and dancing shows. The

message should be transparent and proper message strategies should be used. AIDA is a media

plan which is commonly used by companies to first create awareness of the brand and then

developing customers interest by using celebrity advertising, the making the customers desired

for a specific brand and finally customers will take action that is they buy that brand. Due to rise

in technology, the promotional world is also changing. Direct marketing is another popular and

growing strategy due to database system (Tuten & Ashley, 2011). This strategy is used by direct

mailing and direct messaging. Companies pay to databases which have numbers and email

addresses of strong customers and mails will be sent to them. Direct messages will also be sent to

the customers on their mobile phones.

Gounel and Carter (2012) analyzed that if media is in favor of someone or any brand than

that brand will become popular within few days and if it has bad relations it will ruin the image

of that brand. Therefore one company should make good relation in order to get place in the

market and media will favor it and will support it if any negative situation occurs. Most of the
KIAI Case Study 27

businesses use internet promotional strategy because male female of every age group uses

internet. Therefore flash ads and normal ads will be put on different websites especially social

websites such as twitter and face book where thousand of people log in daily (Thackeray et al.,

2008).

The promotional activities cost $1700 to kiai which includes promoting kiai through

tradeshows, brochures, posters, business cards, pamphlets, and through internet.

3. Objectives of Kiai

Kiai has set the SMART objectives that are specific (what Kiai wants to achieve),

measurable (can Kiai measure its objectives), achievable (can these goals be attain by Kiai),

realistic (are these goals practical and can it rally be achieved by Kiai) and time (when Kiai will

achieve its goals). The objectives drawn by Kiai are as follows;

To entice the customers by using colorful, unique, matchless, tempting, and innovative

laptop skins;

To encourage the trial of new products and increasing the usage of new products; new

products and brands are introduced in the market. Advertisement agencies provide

information to the people abut new products, benefits, features, and offers that offer

incentives to the customers. For instance, a new restaurant may introduce an offer of $1

off on a chicken meal of $4;

To enhance the customer recall that is customer satisfaction associated with the previous

brands through advertising. This is known as reminder advertising. The old brands are

advertised less frequently to remind people that these old brads still exist in the market;
KIAI Case Study 28

To deliver the fair message to the customers regarding the brand and show the real

features of a brand, not fake information.

To get an active response from the customers that is a brand should be presented in such a

way that it propels customers to take an action by purchasing the brand or acquiring

additional information of the brand.

To influence the perception and attitude of the customers to convince them rather than

taking an action. To convince the customers to buy the brand due to the information

communicated to the customer by the ad;

To provide customer satisfaction to the clients whom the services of marketing are given.

The main objective of kiai is not only to reap profits but to justify its revenue through the

satisfaction which is provided to the clients in form of advertising their brands;

To reflect a sense of professionalism through its work that how well team members of

kiai handle their clients and the overall job role. All the team members belonging to any

background portray an image of a professional that is communicating courteously with

the clients as clients are the stakeholders and bringing positive results. This objective is

the most crucial objective as it brings positive and negative effects on the business image

because of the statements given by the potential clients regarding the way their brands

have been advertised;

To do a business in a respectful manner by considering the sensitive matters and not

showing offensive content in the advertisements which can hurt the moral and ethical

values of a culture. According to Federal Communications Commission, use of sexually

explicit content is strictly prohibited in the advertising. In addition, corporate

responsibility is considered essential in kiai;

KIAI Case Study 29

To remain in touch with the demands of he customers plus with the trends which are

currently followed by the clients;

To keep technology update with the preferences of the clients and not to use obsolete

advertising strategies;

To compete in the dynamic business environment by constantly brainstorming and

coming up with new ideas and maintaining the quality of the standards: Continuous

improvement is the foremost objective of kiai;

To increase sales and profits by actively advertising the brands; sales and profits

amplifies when consumers start making regular purchase of the brand advertised through

this agency;

To gain the market value and market share by 2013 through promoting and positioning

the business;

To enable and maintain a smooth cash flow by managing the funds needed for daily

operations; and

To expand the business beyond the boundaries and widen the geographical coverage area

of the target market which gives a global presence to kiai.

4. Appropriate strategies for the achievement of objectives

Positioning via branding

Kiai should carryout a powerful branding to position itself in the minds of the clients. The

objective of customer satisfaction will be achieved when the client of kiai will be satisfied

because of its effectual branding technique. Brand is a symbol or a name of a product and
KIAI Case Study 30

experiences related to the brand in the customers mind. If product has no brand than it is termed

as commodity. Brand gives a life to a product and makes organization livable. Brand contains an

organization promise in itself, the promise to the customers for providing high quality and high

benefits. If organization fulfills their promise, so the customer wants get satisfied and they

become loyal customers. With the ongoing product life cycle, the loyal customers become

hardcore loyal customers. Brand image is the asset of an organization which reflects the brand

attributes benefits, features, uniqueness, quality, service, reliability and accessibility. Brand gives

a beneficial value to the customers (Bhat and Reddy, 2001). Branding gives an identity to a

generic product and makes it different from its competitor brands. It makes the brand worthy that

is brand equity.

Generic Product Brand Worth

(Product has no identity) (Identity building)

It is holistic marketing in which organization activities should be structured in a way that

makes brand valuable. Distinguishable products are made due to branding resulting in

competitive advantage. Branding is an ongoing communication process with the customers and

customers not all the time buy the brand for its attributes, they may also buy the product because

of its attractive and catching branding strategy. Creative, meaningful and accurate branding

catches the consumer attention (Hollensen, 2007). Positioning is the way in which organization

structures its brand and brand image to take up place in the customers mind. It does not position

the product in the market; it actually places the product in the customers. When customer recalls

different brands and the brand name which first comes to his mind according to the need criteria,

that brand is considered to be strong brand with strong branding and positioning (Silk, 2006).
KIAI Case Study 31

Branding is all about differentiating the product. Branding comes from the brand strategy.

Efficient and accurate branding is the core function of an organization. A companys success lies

on its positioning and branding, it results into long term profitability and customer loyalty. For

instance, if someone asks which place do you prefer for fast food? And you say KFC, so this

shows the power of a brand and at the same time the customer is also marketing that brand.

Proper branding makes positive stories (Kotler et al., 2009). If branding is done with proper

marketing techniques so it will create a successful brand image. All competitive organizations

like Apple, combines the marketing and branding concepts and gets benefit in the form of

increased market value. Marketing promotes the brand (Healey, 2008). To create a strong brand

identity is necessary to make the product differentiated. Brand identity leaves an image on the

consumer mind and while choosing between different alternatives, the customer will prefer that

brand which has strong brand identity. For example, if a child is asked for the hamburger, he will

say for McDonalds, this shows the brand consumer association with the brand. This strong

association is due to the powerful brand identity. Rivals can copy the techniques or the product

but they can not copy the brand identity and that makes a successful brand different from other

products (Vaid, 2003).

Social Media marketing strategy

Besides proposed marketing strategies, kiai should incorporate social media marketing in

its own marketing strategy. Social media marketing is a new marketing strategy that an

organization is implementing and integrating in their marketing strategies for effectively

communicating with customers and can position the brand in the mind of the customers. It is a

unique concept that is rapidly gaining position in the marketing field. Social media are providing

value to the organization in terms of customer perceived value and customer response. The key
KIAI Case Study 32

marketing strategy is advertising. The products are advertised via various sources to reach the

market place and target the customers. Social media are also a new strategy that is incorporating

in the advertising strategy of marketing (Packer, 2011). The organizations are advertising the

products on the social websites for capturing the customers attention and communicating the

products benefits, features, and value to the customer. A Social media is a technology that helps

the marketers and businesses in directly interacting with customers and market products.

Social media is a medium where people share the interests, views, hobbies, and personal

details with each other. Through the use, of technology, a social media came in that is connecting

the numbers of customers with the businesses at a particular place.B2B and B2C also use social

media. Along with the younger generation, adults also use social media that is increasing the

market of social media (Evans, 2012).

Traditional marketing uses push strategy. The traditional tools of traditional marketing is;

newspaper, billboards, banners, radio ads, ad TV ads. Traditional marketing involves higher costs

and average customer response. With the invention of the internet, the marketers are using pull

strategy that is customers themselves search for the products through the search engines. In the

same way, social media is a pull strategy where customers can find the products on the social

websites such as Face book, LinkedIn, and MySpace and can pull the information of the

products. Nowadays, traditional marketing is also integrating social media in its marketing

strategies and promoting the products at low cost. The benefits that traditional marketing is

obtaining from the use of social media are small marketing budget cost, quick customers

response, increased businesss exposure, increased sales, and increased probability of M&A.

billions of people use social websites, and therefore, marketing the product via social website is

more profitable than marketing it via traditional strategy of marketing (Stelzner, 2011).
KIAI Case Study 33

Advertising is the marketing strategy that promotes and positions the product in the mind

of the consumers. Marketers use colorful, catchy, and attractive advertisements that can capture

the attention of the customers. Television ads, radio ads, magazine ads, billboards, and

newspapers are the advertising tools. These tools acquire substantial cost. In the modern era,

marketers are executing the social media advertising into traditional advertising. Business post

colorful, attractive, eye-catching, and unique ads on the social websites, because billions of

people use social media and more the user uses social media more the marketing of the product

takes place. It develops friendly relationship between the business and customer. When a

customer achieves satisfaction, he or she becomes a loyal customer and continuous achievement

of satisfaction turns a customer into a hardcore loyal customer.

Product development

Ansoff matrix model is the best model for understanding the strategy that should be adopt

by the businesses. While targeting, an organization select a segment to which it will cater. It is

done by Ansoff matrix and it is an important model. When the market and product both exist, it

is expansion penetration. When the market exists and product is new, it is product development.

When markets is new and product is existing, it is market development and when both market

and product is new, it is diversification (Kotler et al., 2009). Following is the diagrammatical

presentation of Ansoff matrix:

KIAI Case Study 34

Kiai is offering a new innovative service in the market of advertising with a unique form

of advertising. For this reason, kiai should bring constant changes in its service to keep it a

working advertising strategy.

Standardization

Kiai should follow the strategy of standardization. Standardization is a process in which

some attributes of the product is fixed throughout world wide and does not change if the product

is being launched in some other country. Standardization has no fix rules and can be formed as

per the managements wishes, need or requirements. For creating a standardized product one has

to look at its product line thoroughly and determine which attribute or component can be

standardized. Standardization can target following components like shapes, packaging, maybe

pricing too for specific product.

Advantages of Standardization

Cost reduction and increase in sales are two major plus points of this process.

Same qualities and attributes increase customers loyalty toward the products as

they are completely aware about the product.

KIAI Case Study 35

Customers travelling abroad if see the branch of the same company will feel

delighted and will purchase without any hesitancy as the quality and attribute are

homogeneous.

Disadvantages of Standardization

Uniqueness is gone due to the product being similar all the time.

For maintain standard outputs sometimes ignore customers and their demands

Can be copied easily by competitors due to fixed product lines (Dimitrova &

Rosenbloom, 2010).

Adaptations

Kiai has already come up with an innovative strategy of advertising. Therefore, it should

keep adapting the newest technology of advertising. As the name suggest product adaptation is

following an already set product attributes. It is the process where new product is form by

bringing innovation and changes in the already existing product for making it more attractive for

its consumers. It can do adaptation of its own products or product of another company.

Following points are considered important when adaptation is adapted.

Consumers: The target market is the main concern in every business. Human beings are

the most complex creature of God and therefore changes is one of the important characteristic

found in man kinds. Changes in opinions, moods, and requirements are seen with the passage of

time. Adaptation in product offering must take place when consumers demand for some change

or innovation in product.

Sales Generation: Second important factor after satisfying the customer is sales

generation. It is the most important factor. Bringing innovation and adaptation in own product
KIAI Case Study 36

brings sales mostly while if new product is formed following some other company then it gets

more costly then sales.

Packaging Adaptation: If a company is following standardization then it would not go

for this adaptation but it gets necessary at times when packaging does not support cultural or

society values of the target market. It can also lower the sales and attraction if the packaging

does not match the local mentality of the people and they can not find it persuasive and attractive

to purchase.

Adaptation due to Economical Setback: When economy of a country is not showing

expected results, in fact the firm is facing extreme loses then in such cases it is better if

adaptation due to economical situation is followed like lower cost raw material, or change in

policies and process without compromising on the quality is adapted to reduce the cost.

Competitors: The last and most important adaptation strategy is keeping an eye on the

competitors as they are the key factors in business. If a competitor introduces a product with low

price along with innovative offering which is helping in decreasing the cost and increasing its

sales then it becomes necessary to come up with something equally good and competitive

(Dimitrova & Rosenbloom, 2010).

Change management strategy

To keep technology update with the preferences of the clients and not to use obsolete

advertising strategies are the foremost objective of kiai. Hence, kiai should keep bringing a

change in its practices and advertising strategies by adding features in it. A scenario is given that

is there is a need of bringing change in an electronic system of organization to process the order

for improving accuracy and avoiding delays in orders. This change can be brought in an

organization by implementing a change management model, that is, Lewins three-step change
KIAI Case Study 37

process model. According to Lewins change management model, a change can be brought by

unfreezing the status quo, making a change into a new shape, and permanently freezing the

change. A status quo is an equilibrium which is an actual and existing state of something. By

unfreezing the status quo, a change can be brought. It is done by decreasing the restrain forces

that resist a change or by increasing the driving forces for an adaptation of change. These two

approaches can be combined. When an unfreezing is done, a change can be executed by freezing

the change. Freezing is an important condition because if a change is not freeze, a change can

transform into its old equilibrium state. The change in employees can be freeze by reinforcing

the behaviors for stabilizing the new situation in an organization (Robbins & Coulter, 2008). An

example of ice cube is best to understand three-step change process model. An ice cube is first

melted in water form (unfreeze), and then a shape is given to the water (change), and finally a

given shape is solidified (freeze).

Following is a detailed process and format of the model which takes place when an

organization wants to brings change:

Unfreeze

Unfreeze is the first stage of bringing an innovative change in an organization. In the first

step of change model, the existing status quo is broken down by preparing the organization and

employees for a change which is necessary in the processes of business to build up a new way of

operating the business activities. Employees are informed that the existing status quo is not
KIAI Case Study 38

producing efficient results and the technology is needed to be updated as obsolete technology

does not produce the expected results and satisfaction cannot be achieved until the system is

running and operating proficiently and effectually. For instance, if an existing system of

production is needed to get change, a manager can communicate with the employees that the

production system is not producing the expected results, products of bad quality are produced by

exiting production system, customers are unsatisfied, fewer sales are resulted, and less revenue is

generated. The information should be communicated clearly in an easy language so that all the

employees can understand and the restrain forces can be fallen down (Mind Tools, 2012).

This stage is a challenging stage and the most difficult stage. The activity is started at its

core that is the attitude, beliefs, perception, ideas, and ways of working of employees is changed

by coaching the employees. The whole change depends on this process because if the change is

not effectively communicated and employees do not adapt the change, the risk of collapse is

high. A balance must be maintained to now that what is the attitude of the employees and how

the attitude is needed to be mould. A motivation must be given to the employees for making them

move with the new technology. If an employer enforces something without knowing the interest

of employees, a change will not be successfully implemented in an organization (Burnes, 2004).

Change

Change is the second step in Lewins change management process. When an environment

of uncertainty is created, a change takes place that is employees look for new things that are

introduced in an organization and people try to believe that the new detections will produce

positive outcomes and supports it. When a change is brought, people take time to absorb the new

information that is transmitted to them. The proactive participation of employees is not achieved

easily and a change does not occur rapidly. A changing environment carries certain transition
KIAI Case Study 39

which is affected by different factors. A change takes time because al the employees become to

different backgrounds who posses different believes regarding change, and some employees

adapt a change but some employees not readily accept a change. It depends on the type of change

and a nature of change (Mezias et al., 2001).

In this step, time and communication are the two most important elements. If a manager

gives time to employees for knowing the benefits of change and when the benefits will be

reaped, the employees will understand the message of their employer. In addition, if proper clear

and lenient communication is made by the employer, employees feel motivated that a manager is

not enforcing something by means and an organization is taking care of the employee

empowerment. For instance, when there is need of electronic system to process the order delay

and accuracy, a change is communicated to the employees of the organization by communicating

them that such technology-based system will improve the accuracy of the orders and delay will

be controlled. A proper information and time for adaptation will propel the employees for

adapting the new electronic system (change) (Mind Tools, 2012).

Refreeze

The last step in a change management model is refreezing the change that is brought in

the structure, people, or technology after unfreezing the existing structure, technology, or people.

When employees accept the change and they adapt the new ways of working, such change is

refreezing by informing the employees and overall organization that the job description of

employees is fixed or a business process is standardized. It means that the employees will have

to follow the same direction and description for the life time and work will be done in a specific

way. In this stage, a manager helps the employees to institutionalize a change. It means that a
KIAI Case Study 40

change is stabilized and employees must feel comfortable with a change. Hence, new ways of

working of people, technology, or structure is refreeze (Mind Tools, 2012).

In mechanistic organization where standards and formalization is followed, change does

not take space. A mechanistic organization does not follow the rules of an organic structured

organization. Such organization follows strict rules and standards that are followed by all the

employees. Therefore, for bringing change in such organization, refreezing a change is

important. If a change is not refreeze, employees get trapped in choosing the right way to solve

the problems, but if a change is refreeze, employees will never get trapped. However, organic

structured organizations willingly accept the change because such organizations are based on

adhocracy structure. These organizations bring changes by adopting the latest technology for

making them innovative. After refreezing a change is successfully implemented and incorporated

in an organization (Carney, 2000).

Brand equity evaluation

In future, when kiai will expand across the colleges in London, Wills should keep a

record of kiais brand equity. Brand equity is the worth of a brand that how many customers like

the brand and how much they pay for the brand. Following are the evaluator model of brand

equity:

Brand Asset Valuator

This model measures the financial standing of a brand. Financial standing of McDonalds

will increase with multiple offerings in burgers and other food items (Kotler, 2007).

Assets Liabilities= Equity

Product (vertical expansion)

Category (horizontal expansion)

KIAI Case Study 41

BRANDZ Model

This model measure the strength of a brand and it depends on series of steps and each

step is contingent upon the other step. It makes a pyramid of brand difference of expected and

actual performance gives a brand performance, if actual performance is greater than expected

performance than it create bonding (Kotler, 2007).

Brand Resonance

This model will measure the increase in brand equity over the period of time and reaches

at extreme point. This model measures the brand identity, performance, image, judgment and

feelings that customers hold for the brand (Kotler, 2007).

Y-Axis Resonance (increasing expectations)

Dissonance (decreasing expectations)

X-Axis
KIAI Case Study 42

Employees come first for managing clients

There is a strong and positive connection between corporate strategy and marketing

strategy. Corporate strategy is the main business plan whereas marketing strategy is the plan how

to achieve this target. The main business objective can be achieved by creating the awareness and

desire of a product through its promotion and marketing (Kotler et al., 2009).

Kiai should use the strategy of employee comes first. Although the conventional

management says that the clients are the first priority of the organization and the main goal of the

organization is to achieve the client satisfaction. But in this fast moving world the concept of

clients come first is changing and the organizations have started focusing more on employees

value and their satisfaction, so the management is moving towards the new concept that is

employees comes first:

Now the priority and value have shifted to employees first. According to Nayars

statement an organization can achieve a competitive advantage by hiring talented and skilled

employees who can create a value for the clients. This statement is right and accepted by the

management and mostly organizations are following this concept. On the basis of employees

come first, organizations can generate more profits and can better meet the clients needs and

values and can compete in this competitive environment. Employees are the asset of the

organizations; no one can process its work without employees (Campbell, 2012). Employees

give Value Exploration, Value Creation and Value Delivery. In Value Exploration employees find

out the new values which are valuable for the clients and according to their wants which helps in

meeting the organizational goal that is client satisfaction. Then employees create that value

means they first put their Inputs (skill, knowledge and abilities) then they Process it and finally

gives Output (product or service) and add value to that product. In the last phase that is Value
KIAI Case Study 43

Delivery the employees delivers to the client. Employees focus on the Vs Approach that is Value

Segment, Value Proposition and Value Network, this a whole value chain process which results

in the attainment of client satisfaction as well as organization satisfaction. This client satisfaction

turns into a hard loyal client. It is actually a consumer perceived value which includes three

opportunity costs: psychological cost (what is the stress level), monetary cost (how much product

costs) and functional cost how much product is easy to use). Employees focuses on Value

Proposition, they know how to uniquely sell it by using the statements which shows uniqueness,

feature of product that can make it cold, which can give a client benefit an satisfaction (Rupp,

2011).

Nayar (2010) stated that employees understand the consumer preferences because they

are closely associated with them therefore they make strategic ideas which are long term and pre

nurtured for Value Add On is a process in which company adds a value to a product and makes

it valuable, this is also known as value creation process. Employees knows how to add value to

the product which can make the product valuable and can increase the product sales because

employees are the people who actually deals with the clients therefore it s important to

concentrate on employees first and give them value first so that it is because of motivation they

can add proper value and thus consumer satisfaction will be achieved. For example, seed is

transformed to fertilizers, then cotton, then thread, then yarn, then cloth and if the client asks the

company to make a shirt for him so they will stitch for their client, that shirt is the Value Add On.

Employees comes first because they know what clients exactly want, what quality they

want therefore employees try to maintain the quality at each node , if you put effective input, you

will get quality output and client satisfaction and if you put defective Input, you will get

defective output and client dissatisfaction. It is necessary to treat employees well in return
KIAI Case Study 44

employees will treat clients well. For example, Client Service Centre employees deals with

clients face to face or through other mediums, if the company will provide them extra benefits

like food, calm atmosphere, rewards etc so the employees will get motivated so they will treat

the clients well. Organizations should provide bonuses, stock options, medical facility,

Most of the organizations are focusing on the employees needs who are servicing client

because most of the complaints organizations get are about the unacceptable behavior of the

employees. Recruiting the best fit employees is a major competition; who works best at right

time on right place in right amount to attain client satisfaction. If clients are dissatisfied the

organizations will go in loss so it is essential to do staffing in the best way for present and future

profitability. Employees satisfaction and retention plays an important role for maximizing client

value (Clutterbuck, 2003).

Employees are the key source, they are the main leaders, they rule over the organizations.

And due to employees come first theory the worth of employees have increased. Now they are

treated on an upper level. While making any decision the top management also considers the

employees ideas and view. Employees are the first propriety of the organizations. All the

organizations know that by taking employees in hands they can take the clients in hands.

Employees gather info means data collection. They scan the environment that is they search and

scans the opportunity in the market; it is a thorough and detailed search. More detailed search

more intensive data, less detailed search less data gathered. Employees are the active machines

and if employees will not be the first priority than they will not scan the environment thoroughly

which will result in loss. For example, 9/11 was a disastrous event that there was loss

everywhere but china was still generating profits in that situation by making American flags
KIAI Case Study 45

because they knew Americans will do buy flags and they were benefited, it was because of there

employees detailed search.

Work as a team

Team work minimizes cost and maximizes profits. They will accomplish their goals with

wisdom. Power and authority will result in client perceived value and total quality management.

When clients will get effective services so the companys satisfaction of achieving its goals will

increase. Employees can better give ideas of client requirements so the company can decide

whether to go for penetration, expansion, development or diversification. Now the concept has

completely changed, the organizations that follow this strategy are going in profitability such as

Starbucks. Starbucks itself says that they meet the needs of the employees first and then clients

automatically meet their needs because of employees services. The whole discussion makes it

clear that employee definitely comes first. Almost every organization has adapted and started

practicing it. Although conventional management view favors the clients and it is known that

clients are important for the organization as they are the main entities for whom the product has

been produced but for the production, an organization needs employees who can process the

work by putting the inputs (skills, knowledge and abilities) and generating the output (product or

service). No company can run its operations without employees because they directly deal with

the clients. If employees get benefits plus salary and manager motivates them so the employees

will be more committed in exploring, creating and delivering the value to the client which results

in client satisfaction and an organization accomplishment and expansion (Ciocchetti, 2011).

KIAI Case Study 46

5. Financial analysis

Financial performance of an organization helps in evaluating the effectiveness of

business. Financial performance is directly linked with the marketing process. Financial

accountability is an important element for measuring the business performance. It is how much a

business has invested and how much return it got. Financial accountability is the return on

marketing that is sales revenue generated by the marketing activity/program divided by the total

cost of that marketing activity/ program. ROM (return on marketing) is a financial metric. An

organization performance is measured on the basis of its financial performance and financial

stability. Financial activity is related with the marketing mix activities that involves various

marketing activities and gives transitional marketing outcomes by maximizing the profits. All

marketing activities hold returns that generate profit for the organization. Return on advertising,

promotion, distribution, price tactics, and product strategy varies from business to business.

Returns on these marketing activities are the significant indicators of an organizational financial

performance (Bragg, 2012). Marketing expenditures enthusiastically amplifies the organizational

performance. Model of econometric marketing mix is a competitive advantage and factor of

profitability for the organizations.

Calculation of promotional cost

Tradeshows

Registration of trade shows= $500 *1= $500

Cost of lightning, display, an signage= $250 * 1= $250

Small Business Centre Membership

Membership fees of SBC per year= $95 * 1= $95

Cost of printing of informational brochures and poster for color copy= $0.50 * 100= $50
KIAI Case Study 47

Cost of printing of business cards for 250 cards= $50 * 1= $50

Website

Cost of a designing of a basic website= $750 * 1= $750

Total promotional cost= $1695 or $1700

Calculation of fixed cost

Skin printing

Cost of printing a skin= $25 per skin

Cost of printing of 10 skins= $25 * 10= $250

Salary

Salary of an employee= $10 per hour (working 10 hours a week)

Salary of an employee for a week= $10 * 10= $100

Salary of 10 employee for a week= $100 * 10 = $1000

Working hours for eight months= 10 * 32= 320

Salary of an employee for eight months= $10 * 320= $3200

Salary of 10 employee for eight months= $3200 * 10= $32000

Total fixed cost for a week is= Cost of printing of 10 skins + Salary of an employee for a week

Total fixed cost for a week is= $250 + $100= $350

Calculation of price to be charged (cost)

Total cost= 250 (laptop skins) + 100 (salary per week) + 50 (profit $5000/100)

Total cost= $400

Calculation of total impressions

Opening of laptop in a class for three times a week = 100 viewers per class * 3= 300 views a

week
KIAI Case Study 48

Opening of laptop in a public location= 100 views * 3= 300 views

Opening of laptop in a cafeteria for two times a week= 100 views * 2= 200 views

Opening of laptop in a library for two times a week= 100 views * 2= 200 views

Opening of laptop in a meeting= 10 views

Opening of laptop in homework session= 10 views

Opening of laptop in at work or home= 10 views

Total impressions in a week= 1030 views per member

Total impressions in a week of entire team= 1030 views * 10= 10300 views

Total impressions in eight months of entire team= 10300 * 32= 329600 views

Calculation of Cost per impression for eight months

*CPM= total cost/ (impression/1000)

*CPM= $400/ (329600/1000)

*CPM= $400/ 329.6

*CPM= $1.21

Calculation of forecasted cash flow for 1st month

CASH FLOW
Sales 32000
Variable cost -1700
Fixed cost
Salary ($10 * 10 hours in a week) * 10 (team members) -4000
Laptop skin printing -250
Operating profit 22300
Tax (20%) 4460
Cash flow 17840

Calculation of forecasted P/L statement for 1st month

KIAI Case Study 49

P/L STATEMENT
Sales 32000
COGS 0
Gross profit margin 32000
Less: operating expenses
Advertising and promotion -1700
Less: administrative expenses
Salary -4000
EBIT 26300
Less: interest 0
EBT 26300
Less: tax (20%) 5260
Net profit 21040

6. Conclusion

Kiai is an idea of a small business. This idea was presented by Wills, a full time student at

Western. Wills gave an idea of advertising the brands by using the unused space at the back of

the laptops know as laptop lid. The brands ere proposed to be advertised by placing the skins on

the laptop lid. The student government restricts the companies to market their products on

campus. Wills availed this opportunity and converted into his strength by approaching those

businesses who want to market their product on campus. Mills made a team of 10 dedicated

students who were supposed to use laptops in class, cafeteria, library, and other public places.

The cost of per skin printing was $25 and total 10 members carried the laptops so the total

printing cost of skin was accounted to be $250. The main competitors of kiai are; The London

Free Press, Western News, and The Gazette. LFP is the major competitor because it covers a

huge population in London. This is the main threat for Wills business. The financial analysis

showed that Wills can pay the members $10 per hour for working 10 hours in a week. The cash

low and profit/loss analysis showed that Wills can attain the target of profit of $5000. Wills

business is a profitable business as its CPM is $1.21 which is less than the CPM of LFP.
KIAI Case Study 50

Moreover, the cost of advertising charged to the clients is $400 which is lower than its

competitors but not cheaper. It reflects that kiai can easily expand its business in future as cash

flow is positive which shows that there is no loss in Wills business.

KIAI Case Study 51

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