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Harvard Case - Kat Rose Inc. - Sponsoring All-Star Cricket: A Selling Dilemma

"Kat Rose Inc. - Sponsoring All-Star Cricket: A Selling Dilemma" Harvard business case study is written by Michael Taylor, Syed Saad Karim. It deals with the challenges in the field of Entrepreneurship. The case study is 18 page(s) long and it was first published on : Sep 4, 2014

At Fern Fort University, we recommend that Kat Rose Inc. refrain from sponsoring the All-Star Cricket tournament. This decision is based on a thorough analysis of the company?s current position, the potential benefits and risks of the sponsorship, and the alignment with Kat Rose Inc.?s long-term growth strategy. Instead, we propose a multi-pronged approach that leverages the company?s entrepreneurial spirit and innovative nature to achieve significant brand awareness and market penetration in the emerging markets.

2. Background

Kat Rose Inc. is a rapidly growing startup specializing in the development and distribution of affordable and high-quality herbal hair care products. The company is led by its passionate founders, Kat and Rose, who are committed to providing natural and effective solutions for hair problems. Kat Rose Inc. has achieved remarkable success through its disruptive innovation in the hair care industry, focusing on product development and marketing strategies that resonate with a diverse customer base.

The case study presents the company with an opportunity to sponsor the All-Star Cricket tournament, a high-profile event with a large viewership. However, the sponsorship comes with a significant financial commitment, raising concerns about its return on investment (ROI) and alignment with the company?s overall growth strategy.

3. Analysis of the Case Study

This case study can be analyzed through the lens of marketing strategy, financial analysis, and strategic alignment.

Marketing Strategy:

  • Target Audience: The All-Star Cricket tournament primarily targets a male audience, which may not align perfectly with Kat Rose Inc.?s target demographic, which includes both men and women.
  • Brand Image: The sponsorship could potentially dilute the brand?s focus on natural and ethical products if the tournament is associated with negative publicity or controversies.
  • Alternative Marketing Strategies: Kat Rose Inc. can leverage its entrepreneurial spirit and innovative approach to develop more targeted and cost-effective marketing campaigns. This could include:
    • Digital Marketing: Utilizing social media platforms, influencer marketing, and online advertising to reach specific demographics.
    • Partnerships: Collaborating with beauty bloggers, hair salons, and other relevant businesses to expand reach and brand awareness.
    • Community Engagement: Participating in local events and initiatives related to hair care and wellness.

Financial Analysis:

  • Cost-Benefit Analysis: The sponsorship requires a significant financial investment, with uncertain returns. The company needs to carefully assess the potential benefits in terms of increased brand awareness, sales, and market share against the associated costs.
  • Alternative Investment Options: The company can allocate its resources to other initiatives that can generate a higher ROI, such as product development, market research, and expansion into new markets.

Strategic Alignment:

  • Growth Strategy: The sponsorship may not align with Kat Rose Inc.?s long-term growth strategy, which focuses on building a sustainable and ethical business.
  • Core Competencies: The company?s core competencies lie in product development, marketing, and customer service. The sponsorship may not leverage these strengths effectively.

4. Recommendations

Kat Rose Inc. should refrain from sponsoring the All-Star Cricket tournament and instead focus on a multi-pronged approach that leverages its entrepreneurial spirit and innovative nature to achieve significant brand awareness and market penetration in emerging markets.

Recommendations:

  1. Develop a comprehensive digital marketing strategy: This should include targeted advertising on social media platforms, influencer marketing campaigns, and engaging content creation.
  2. Partner with key players in the beauty industry: This could include collaborations with beauty bloggers, hair salons, and online retailers to reach a wider audience and build brand credibility.
  3. Expand into new markets: Kat Rose Inc. should leverage its entrepreneurial spirit to explore new markets, particularly in emerging economies with a growing demand for natural hair care products. This could involve strategic partnerships, joint ventures, or setting up local manufacturing facilities.
  4. Focus on product development: The company should continue to invest in research and development to create innovative and effective hair care products that address specific customer needs. This could include exploring new ingredients, formulations, and packaging solutions.
  5. Build a strong brand identity: Kat Rose Inc. should focus on building a strong brand identity that resonates with its target audience. This could involve developing a clear brand message, creating engaging content, and participating in relevant events and initiatives.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core competencies and consistency with mission: The recommendations align with Kat Rose Inc.?s core competencies in product development, marketing, and customer service. They also support the company?s mission to provide natural and effective hair care solutions.
  2. External customers and internal clients: The recommendations are designed to reach and engage the company?s target audience, while also empowering employees to contribute to the company?s success.
  3. Competitors: The recommendations are informed by an analysis of the competitive landscape and aim to differentiate Kat Rose Inc. from its competitors.
  4. Attractiveness ? quantitative measures if applicable: The recommendations are expected to generate a positive ROI, based on projections of increased sales, market share, and brand awareness.
  5. Assumptions: The recommendations are based on the assumption that Kat Rose Inc. has the resources and capabilities to implement them effectively.

6. Conclusion

By focusing on its core strengths, leveraging its entrepreneurial spirit, and embracing disruptive innovation, Kat Rose Inc. can achieve significant growth and success without the risks and uncertainties associated with sponsoring the All-Star Cricket tournament. This approach will allow the company to build a strong brand identity, expand into new markets, and solidify its position as a leader in the natural hair care industry.

7. Discussion

Other Alternatives:

  • Partial Sponsorship: Kat Rose Inc. could explore a less expensive sponsorship option, such as sponsoring a specific segment of the tournament or a particular player.
  • Strategic Partnership: The company could partner with a related brand or organization to share the cost of the sponsorship and maximize its impact.

Risks and Key Assumptions:

  • Market Volatility: The recommendations are based on the assumption of continued growth in the natural hair care market. However, market fluctuations could impact the company?s sales and profitability.
  • Competition: The recommendations assume that Kat Rose Inc. can effectively compete with established players in the market. However, increased competition could make it challenging to achieve desired market share.

8. Next Steps

  1. Develop a detailed marketing plan: This plan should outline the company?s target audience, marketing channels, budget, and key performance indicators (KPIs).
  2. Identify and approach potential partners: The company should identify and approach relevant businesses for potential partnerships, such as beauty bloggers, hair salons, and online retailers.
  3. Conduct market research in target markets: The company should conduct thorough market research to identify opportunities and challenges in new markets.
  4. Develop a product roadmap: The company should develop a product roadmap that outlines its future product development plans, including new ingredients, formulations, and packaging solutions.
  5. Implement a strong brand strategy: The company should develop a clear brand message, create engaging content, and participate in relevant events and initiatives to build a strong brand identity.

By taking these steps, Kat Rose Inc. can effectively implement its growth strategy and achieve its long-term goals.

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Case Description

Headquartered in Mississauga, Ontario, Kat Rose was founded in 2009 to produce small strategic business conferences and corporate hospitality events. After mixed success, it was presented with an opportunity in 2011 to organize a cricket match in Toronto. Although sports were not on its radar, the company decided to use the project as a base for expansion. It put in place an aggressive advertising plan, largely aimed at South Asian and West Indian communities in the city who were fans of the game, and contracted Universal Productions, an ethnic marketing agency, to procure sponsorships. However, with only 10 weeks to go before the International Cricket All-Star T20 Match was scheduled to kick off on May 12, 2012 at the Rogers Centre, Toronto, only $60,000 had been raised; $750,000 was needed to break even. Management had four choices: give Universal Productions more time, offer it a financial incentive to step up performance, switch to another agency with a proven track record in this field or increase its own in-house sales force to focus on countertrade barter agreements. Each option required different skills, knowledge, experience and risk. Given the severe time constraint, any change must be implemented immediately. What should Kat Rose do?

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