Progressive

Discussion Questions for All Cases

MKTG 6010 / Prof. Tony Gao / UMass Lowell

There is a formal write-up assignment on only one case, the Tanpan Kanri case and the questions for all other cases are meant to help you read the cases and prepare some informal class participation notes for yourself. If one misses a particular case, a formal case analysis may be required to help partially make up for the missed class participation opportunities.

Aldi Case

1. Describe the core elements of Aldi’s marketing strategy (target market, marketing mix, and key value propositions).

2. Use facts from the case to assess the extent to which different components of Aldi’s marketing strategy are aligned with one another, and with the key needs of the target market.

3. What particular strategic marketing decisions made by Aldi might have given it certain competitive cost advantages over low cost leaders such as Wal-Mart?

4. Can Aldi successfully replicate its business model in the US and other countries? Why or why not?

5. Discuss key challenges facing Aldi as it seeks to continue its success. In other words, how might Aldi fail in the next twenty years?

Innovation at Progressive (A) Case

1. How did Progressive’s average performance during 1995-1999 as an auto insurer compare to those of its key competitors (State Farm, All State, and Geico)?  Draw a table (in either Word or Excel) showing calculation results (only results).  Use average loss ratio, expense ratio, average net investment income ratio, and average net income ratio, all as a percentage of premiums earned, in your comparisons.  What are the key findings from this analysis?  

2. Customers of auto insurance are very price sensitive. How problematic is it to Progressive that customers almost always select the insurer that offers the best price? How can it use this behavioral pattern of customers toward its advantage?

3. In your...