Catalina in the Digital Age Harvard Case Solution & Analysis

Problem Statement

Catalina CPG has been printing coupons for decades now that are being sponsored by the consumer packaged goods companies. So far the company has been using the in-store method of distributing coupons at checkouts but the passage of time the company adopted the change and utilized the online medium as well. However, a new opportunity is there in the marketplace in the form mobile platforms which the company is aiming to adopt. However, there are certain questions that are present which are causing distortion in taking the final decision.

The decision needs to address the positioning of the new product and the induction of the product in the marketing mix of the company. Besides that questions regarding safeguarding and enhancing the value proposition with regard to the competition and decreasing the margins is also essential for the firm. Thus the final decision that the company needs to take regarding this new change and adopting it is the major issue for the company that needs to be resolved.

Overview

Catalina saw an opportunity in the year 1982 that can be exploited by bringing a revolution at the point of sale checkouts and launching coupons that provided a new method of promotion. This method was heavily utilized by the consumer packaged goods companies as they used to sponsor the coupons which helped these companies in generating more sales, allowing customers to switch brands and engaging customers and achieving customer loyalty. Catalina had a strong customer purchased data that it utilized to target CPG companies and some retailors as well.

The company enjoyed strong hold in the market but since the emergence of the online medium which increased the competition for the firm sustaining the hold has become a challenging task. Similarly the changing landscape of the industry and the emergence of new ideas and platforms like mobile phone is posing opportunities as well concerns for the company. The business model and the portfolio of the company served the purpose quiet efficiently and allowed the firm to keep a strong hold in the industry. However, these radical changes have raised the concerns for the new CEO of the company and made the decision quite compelling and challenging.

Analysis

This section will facilitate the new CEO of Catalina in assessing the situation more appropriately and will serve as a strong guide for the future and also facilitate him in taking on the final strategic decision. This section will assess the internal and external environment for the company and will utilize different models that will be helpful in tracking the current situation and will serve as the guiding route for the final decision.

SWOT Analysis

This model will help the CEO in assessing the internal and external analysis of the company. In the internal section the major strengths of the company along with the core weaknesses are described that will help in identifying the areas that can be leveraged to further build on success and also the areas that requires improvement. This section will also carry the external analysis for the company as well.

Besides that this section will also help in identifying the major opportunities that are available for the company and leveraging its strengths the company can exploit these opportunities. Besides that this section will guide in identifying the major threats that are present in the external environment to be considered while shaping the strategy and deciding on the long term plans of the company.Catalina in the Digital Age Case solution

Strengths

The company has a strong hold in the market and has the first mover advantage as the company initiated the concept of checkout printing in the year 1983 at the point of sale in retail stores. This method transformed the point of sale method and made the process easier and effective which is why it is accounted as the major and the prime strength of the company. Secondly, the company proposed a new method of promotion for the consumer packaged food companies as well as for the retailors that has not provided an opportunity to promote the products but also facilitate sales and allowing firms to provoke users to switch the brands through coupons..............

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