Cardswap

CardSwap Analysis Group Case Study BUSI 2208

Table of Contents

Executive Summary Problem Statement Situation Analysis: Macro Environment Situation Analysis: Microenvironment Segmentation Analysis Strategic Alternatives: Alternative 1 Strategic Alternatives: Alternative 2 Strategic Alternatives: Alternative 3 References Appendices 3 3 3 5 9 11 12 13 15 18

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Executive Summary

CardSwap has a limited amount of funds allocated to advertising and they are striving to find the most effective and efficient ways to use those resources to gain a larger customer basis in such a small, specific market. It is recommended that CardSwap target the “Budget Freak” consumers within the Canadian society; the high-volume budgeters who consider buying discounted gift cards for themselves as a means of saving money. CardSwap prides itself on being the only company of its kind in the Canadian market, and they need to maintain their market dominance by strategically marketing their brand. In order to this, they can sponsor local events, take leverage off of free media, and start initiatives in malls and schools. By implementing these strategies, CardSwap can maintain their position in the market and in doing so, increase their profits.

Problem Statement

The biggest issue currently facing CardSwap is the size of this small firm; as a result, access to advertising funds is limited. While competition begins to grow within the gift card industry, CardSwap must find more frugal ways of marketing and advertising to increase its market share.

Strategic Analysis: Macro Environment (See Appendix A for more information)

Demographic Canada is an aging population, and as a result only half of the population older than 50 are on the web (Statistics Canada 2009). This is an important aspect of the demographic forces that CardSwap needs to consider when assessing their marketing strategies; of the population of Internet users under the age of 35, only 65% go to window shop...