Strategic Marketing Case Study on

Submitted To:- Submitted By :-

Prof. Sivapriya Krishnan Karanbir Singh18th Aug, 2010 12141 SIBM Bangalore

Analysis of Hobart Corporation Case

SWOT Analysis before Repositioning

Strengths1. Largest Firm ( in terms of Sales)2.Broad coverage of Industry & Product categories3.Good Service4. Large geographical spread – 200 locations5. High Quality & Reliable products

Weakness1. Not into innovative products.

Opportunities1.Innovative Solutions :- Offer innovative solutions to the day to day problems faced by Industry

Threats1. Competition from overseas in terms of price.

Ques 1) Why do chefs buy Hobart for their kitchens?

Ans 1) Following are the reasons for chefs buying Hobart for their kitchens:-

1) Hobart Corporation is perceived as a credible organization famous for its service network, large geographical spread and wide offerings of products. It is famous adage that “ Cooks would be lost without the products manufactures by Hobart”.

2) After repositioning it is perceived as a problem solver where focus is on providing equipment which focus on Product Benefits rather than focusing on features or Selling points. It offered solutions for keeping food safe, providing enticing dining experience, eliminating costs, training to staff, reducing shrinkages.

3) Removing Marketing Myopia and moving in tandem with the consumers :-Hobart not only sold products but focused on listening to the problems faced & giving advice ( as bolstered in their Branding exercise) to the industry. They had useful content for them on their website, trade magazines, trade shows Printed material.

Ques 2) What was the strategic position before the “Solid Equipment , Sound Advice” program? How did it change?

Ans 2) Earlier before the Repositioning exercise, Hobart Corp. was perceived as a Product Leader (breadth of offerings) with myriad of products being offered and covering large industry. But then it repositioned itself to a “Thought Leader”( focus on quality)

So it transformed from focusing on Features to focusing on Product Benefits. Rather than just focusing on breadth of offerings it started concentrating on innovative solutions which solved the day to day problems faced in the industry and helped them with benefits like reducing costs, training etc.

So now nowhere it was not fighting on Price but rather on the Quality of the product.

Ques 3) What strategic options did Hobart pursue?

Ans 3) Hobart Corp. sensed a big threat from overseas industries in terms of lower prices. It became clear that they cannot sustain long with just giving large product offerings as there was large competition cropping up from overseas industries. So Hobart Corp. decided to reposition itself from Product Leader to Thought Leader or the Quality leader.

It exercised a Strategic Option where it decided to focus on Customer pain points or the problem areas and develop solutions accordingly. There was a complete strategic repositioning where changed brand image was positioned through solutions offered in booths in the trade shows, solutions to frequent questions on the company’s website, articles on the company’s website, printed material etc.

So there was a paradigm shift from just several products to Quality of the products.

Ques 4) The new program soaked up resources, thereby reducing the effort to communicate new product innovations. Was that a wise decision ? Which approach is likely to create a better support toward a quality position?

Ans 4) Yes, that was a wise decision as they carved out a niche for themselves in the market. If they would have continued in the way they were earlier that is based on just myriad product offerings they would have lost competitive advantage as there was big threat from overseas industries which came out with more cheap products.

Now the shift from Product Leader to that of Product Quality or the Problem Solver made them standout form the competition from the overseas. They had become customer oriented with ready solutions to the problem faced by customers.

This approach had definitely created better support towards quality as they were directly hitting the customers problem areas and helping them to reduce costs, get rid of shrinkages, keeping food safe etc.

With this they have moved from projecting Features to Product Benefits i.e. customers were directly able to relate their problems with the product

Ques 5) How could competitors position themselves against Hobart’s strategic position? What criteria would be useful in developing the strategic position?

Ans 5) Competitors could position themselves against Hobart Corporation by introducing innovative offerings and focusing on the pain points faced in the industry. They can compete on Quality of Products offered. Also competitors can offer bundled solutions so that competitors can have clients for any one of the solutions they offer.

They can exercise their branding through Online Forums where they can offer solutions to the problem faced by customers in the Food Industry. Also they can have their geographical spread in the regions where Hobart does not have presence like Pacific Rim.