Alfa Case Part 1

Marketing Management

Alga Case Part 1.

2016

ALFA Case Part 1

Table 1: Expected value table

* Delta is Alfatron’s closest competitor

Value Index = Our Co. value / Competitor vale

Table 2: Indifferent Pricing Table

Table 3: Average importance table

Table 4: Relative performance table

(1) Alfa scored the highest Expected value of the product set. Delta is Alfa’s closest competitor scoring very similar points on each attribute considered in the case. Degreaser, disinfectant and suitable for all surfaces are the top three attributes which score higher than the average score for all attributes. Alfa and Delta score very highly in these three characteristics. On the same token Alfa scores relatively low on “scented” and “no rinsing required” which are less important attributes yet Epsilon and Gamma rank highly in these rating. If there is a market where customers do consider these two attributes highly then Epsilon and Gamma a probably going to make sales. The difference between the highest and lowest values is 11%. The market seems pretty compact in terms on how customer perceive each competitor. Beta and Gamma are also considered pretty strong competitors having just a 1.06 value index. Since the three companies have similar market share it is appropriate to analyze each major competitor to understand how to best attack their weaknesses and concentrate on Alfa’s strengths as a product. “Scented” and “no rinsing required” have made big strides in importance in the last few years. In this case I will focus on the closest competitor Delta, but in a market situation this the other two competitors should not be overlooked.

(2) Alfa is priced in line with its closest competitor Delta at a price indifference point of €2.05. Alfa is also priced competitively against Epsilon which has a price indifference of €2.10 which is €0.05 above Alfa’s current price of €2.05. This means that at €2.05 Alfa is competitive against these two products....