DLJdirect: Putting Our Reputation Online Harvard Case Solution & Analysis

Internet broker DLJdirect faced two solutions during the fall of 1999: that the customer segments to its purpose and how much he should spend on marketing? Unlike its competitors, which are aimed at either day traders or investors more mainstream, DLJdirect differentiate their services to meet the needs of independent, sophisticated, high net worth investors. But it was DLJdirect forfeiting profits does not make day traders? The following year, the top ten online brokers are projected to spend $ 1.5 billion on marketing, E * Trade will package with a $ 300 million budget. DLJdirect plans to spend $ 65 million on marketing in 1999, a 250% increase over the previous year. But will increase ad spending have a positive long-term returns, as the cost of marketing new account twice? And as fighting intensified advertising, was $ 65 million marketing budget large enough to allow DLJdirect maintain its competitive position? "Hide
by Thomas R. Eisenmann, Gillian Morris Source: Harvard Business School 24 pages. Publication Date: November 2, 1999. Prod. #: 800164-PDF-ENG

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