Case Study Description of Grey Advertising/Canada Dry Account
After taking over Canada Dry's mixers account in 1966, Grey Advertising assembled a successful ad campaign that increased ginger ale sales significantly. But Canada Dry's market share for ginger ale and its other mixer products had remained the same or declined during this period. A consumer research study, using psychographics and various demographic and attitudinal techniques, is commissioned by Canada Dry as a prelude to a $2 million ad campaign designed to arrest the market share trend. Various consumer behavior, research, and managerial issues are raised by the study. Grey Advertising must now develop a strategy based on the results of this study.
Swot Analysis of "Grey Advertising/Canada Dry Account" written by Scott Ward, Craig E. Cline includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Grey Dry's facing as an external strategic factors. Some of the topics covered in Grey Advertising/Canada Dry Account case study are - Strategic Management Strategies, Demographics, Market research and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Grey Advertising/Canada Dry Account casestudy better are - – wage bills are increasing, increasing commodity prices, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
central banks are concerned over increasing inflation, there is backlash against globalization, etc
Introduction to SWOT Analysis of Grey Advertising/Canada Dry Account
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Grey Advertising/Canada Dry Account case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Grey Dry's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Grey Dry's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Grey Advertising/Canada Dry Account can be done for the following purposes –
1. Strategic planning using facts provided in Grey Advertising/Canada Dry Account case study
2. Improving business portfolio management of Grey Dry's
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Grey Dry's
Strengths Grey Advertising/Canada Dry Account | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Grey Dry's in Grey Advertising/Canada Dry Account Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Grey Advertising/Canada Dry Account Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Grey Dry's is one of the leading recruiters in the industry. Managers in the Grey Advertising/Canada Dry Account are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Grey Dry's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Grey Advertising/Canada Dry Account Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Grey Dry's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Grey Dry's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Grey Dry's in the sector have low bargaining power. Grey Advertising/Canada Dry Account has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Grey Dry's to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Grey Dry's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Grey Dry's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Grey Dry's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Grey Dry's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Grey Dry's is one of the most innovative firm in sector. Manager in Grey Advertising/Canada Dry Account Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Grey Dry's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Grey Dry's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Grey Advertising/Canada Dry Account Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Grey Dry's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Grey Dry's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Successful track record of launching new products
– Grey Dry's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Grey Dry's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses Grey Advertising/Canada Dry Account | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Grey Advertising/Canada Dry Account are -
Skills based hiring
– The stress on hiring functional specialists at Grey Dry's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Aligning sales with marketing
– It come across in the case study Grey Advertising/Canada Dry Account that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Grey Advertising/Canada Dry Account can leverage the sales team experience to cultivate customer relationships as Grey Dry's is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Grey Dry's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Grey Advertising/Canada Dry Account can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Grey Advertising/Canada Dry Account, in the dynamic environment Grey Dry's has struggled to respond to the nimble upstart competition. Grey Dry's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Grey Dry's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Grey Dry's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Grey Dry's to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Grey Dry's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Grey Advertising/Canada Dry Account should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Grey Dry's products
– To increase the profitability and margins on the products, Grey Dry's needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Grey Dry's supply chain. Even after few cautionary changes mentioned in the HBR case study - Grey Advertising/Canada Dry Account, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Grey Dry's vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Grey Dry's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Grey Dry's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study Grey Advertising/Canada Dry Account has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Grey Dry's 's lucrative customers.
Interest costs
– Compare to the competition, Grey Dry's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Grey Advertising/Canada Dry Account | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Grey Advertising/Canada Dry Account are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Grey Dry's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Manufacturing automation
– Grey Dry's can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Leveraging digital technologies
– Grey Dry's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Grey Dry's can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Grey Dry's can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Grey Dry's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Developing new processes and practices
– Grey Dry's can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Grey Dry's in the consumer business. Now Grey Dry's can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Grey Dry's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Grey Advertising/Canada Dry Account suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Grey Dry's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Grey Dry's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Grey Dry's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Grey Advertising/Canada Dry Account - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Grey Dry's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Grey Dry's has opened avenues for new revenue streams for the organization in the industry. This can help Grey Dry's to build a more holistic ecosystem as suggested in the Grey Advertising/Canada Dry Account case study. Grey Dry's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Grey Dry's is facing challenges because of the dominance of functional experts in the organization. Grey Advertising/Canada Dry Account case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Grey Advertising/Canada Dry Account External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Grey Advertising/Canada Dry Account are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Grey Dry's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Grey Dry's is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Grey Dry's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Grey Dry's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Grey Dry's.
Regulatory challenges
– Grey Dry's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Grey Dry's in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Grey Dry's.
Stagnating economy with rate increase
– Grey Dry's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Grey Dry's business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Grey Dry's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Grey Dry's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Grey Advertising/Canada Dry Account .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Grey Dry's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Grey Advertising/Canada Dry Account, Grey Dry's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Weighted SWOT Analysis of Grey Advertising/Canada Dry Account Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Grey Advertising/Canada Dry Account needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Grey Advertising/Canada Dry Account is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Grey Advertising/Canada Dry Account is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Grey Advertising/Canada Dry Account is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Grey Dry's needs to make to build a sustainable competitive advantage.