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Case
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Reference no. 510-067-1
Subject category: Marketing
Authors: David Roman Coy (EADA Business School)
Published in: 2009
Length: 21 pages
Data source: Field research

Abstract

Majorica is a traditional company that sells jewellery made from cultivated pearls, whose quality and characteristics are similar to natural pearls. The firm has been operating for over a century now and its heyday, when well known artists such as Sophia Loren purchased the company''s necklaces and bracelets, is now over. It is currently going through the most crucial moment of its history. The company has always positioned itself inside the affordable luxury market, between the expensive and prestigious exclusive traditional jewellery market and the latest in fashion and pret a porter in imitation jewellery. New competitors have entered the scene. This has changed the historical rules of the game and Majorica doesn''t know the ropes very well. In this new scenario the company finds it hard to compete given that its investment capacity in communication is more limited than that of its competitors due to its production costs and the current owners'' investment policy, which is very much focused on short-term business profits more than long-term investment in repositioning the brand. The case looks at the main competitors, their characteristic features and communication positioning. It also analyses the findings of a market research survey of final customers, the key conclusions of which confirm the hunch that the managers already had that there is a great deal of recognition on the part of the target segment over 50 years of age, but very little notoriety among people below that age. Similarly, the quality of its products is highly rated and its image is that of a classic product linked to pearls and the island of Majorca. The case presents participants with a challenge for working on positioning and branding in an organisation that has sold goods in the past and has not evolved by incorporating new buyers to its consumer segment. As regards the profile of participants, the case is intended for MBA programmes and specialised executive masters'' programmes in marketing, as part of the strategy and branding modules. It may also be used as a case to finish off a marketing module in MBA programmes because it deals with all the tactical marketing areas and allows for extensive general discussion.
Location:
Size:
300 employees and billing of EUR25 million
Other setting(s):
2009

About

Abstract

Majorica is a traditional company that sells jewellery made from cultivated pearls, whose quality and characteristics are similar to natural pearls. The firm has been operating for over a century now and its heyday, when well known artists such as Sophia Loren purchased the company''s necklaces and bracelets, is now over. It is currently going through the most crucial moment of its history. The company has always positioned itself inside the affordable luxury market, between the expensive and prestigious exclusive traditional jewellery market and the latest in fashion and pret a porter in imitation jewellery. New competitors have entered the scene. This has changed the historical rules of the game and Majorica doesn''t know the ropes very well. In this new scenario the company finds it hard to compete given that its investment capacity in communication is more limited than that of its competitors due to its production costs and the current owners'' investment policy, which is very much focused on short-term business profits more than long-term investment in repositioning the brand. The case looks at the main competitors, their characteristic features and communication positioning. It also analyses the findings of a market research survey of final customers, the key conclusions of which confirm the hunch that the managers already had that there is a great deal of recognition on the part of the target segment over 50 years of age, but very little notoriety among people below that age. Similarly, the quality of its products is highly rated and its image is that of a classic product linked to pearls and the island of Majorca. The case presents participants with a challenge for working on positioning and branding in an organisation that has sold goods in the past and has not evolved by incorporating new buyers to its consumer segment. As regards the profile of participants, the case is intended for MBA programmes and specialised executive masters'' programmes in marketing, as part of the strategy and branding modules. It may also be used as a case to finish off a marketing module in MBA programmes because it deals with all the tactical marketing areas and allows for extensive general discussion.

Settings

Location:
Size:
300 employees and billing of EUR25 million
Other setting(s):
2009

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