Details

Case

BAGUETTE GALORE: THE VALUE BONANZA CAMPAIGN

Ehsan ul Haque, Moeen N. Butt

INDUSTRY : Fast Food

AREA : Marketing

ORGANIZATION :

LENGTH : 17

LUMS No : 04-2379-2021-1

PUBLICATION YEAR : 2021

KEYWORDS:

marketing, channel management, franchising, marketing mix, distribution channels, consumer behaviour

DESCRIPTION:

On October 15, 2019, Mr M. Chattha, Business Development Manager, Southern Territory, Baguette Galore, Thailand (henceforth, BG), along with his colleague in the Northern Territory, had to decide on whether to roll out the 'Value Bonanza' campaign at the consultant's suggested prices or not. Over the past few years, consumer perceptions of BG products had remained relatively poor, and same-store sales had remained stagnant. Chattha and BG regional headquarters felt that the 'Value Bonanza' campaign was needed to address these issues. BG franchisees were not convinced. They were already dissatisfied with their bottom-line figures, and they felt that this campaign would seriously dent it further. Further, there was a question of advertising spend allocation for the campaign. Franchisees were also unwilling to let go of their share of local marketing budgets in favour of this national campaign. Chattha knew that he could not force his decisions on the franchisees. He needed to convince them with logic and homework. He called an urgent meeting of the Marketing Board and the Pricing Committee to present his arguments and move forward with action.

LEARNING OBJECTIVES:

The fundamental teaching and learning objectives include the following: • Illustrate the franchising system of business with its opportunities and challenges (and policies made to address them); • Highlight the role and challenges of a BDA – an intermediary between the franchisor and the franchisee; • Understand and resolve channel conflict in the franchising context.

SUBJECTS COVERED:

Marketing