Xiamen Honda 4S Shop
(11 pages of text)
Based on the automobile sale model in the mainland of China, this business case describes Xiamen Honda 4S Shop’s current sales situation, marketing strategy and management. It emphasizes the dilemma faced by the company CEO — whether or not he will implement the plan proposed by the sales department to offer lifetime car care for customers who bought car insurance from the company. Deeper marketing management problems are also raised, such as how to distribute marketing resources, how to evaluate the marketing plan and its performance and how to raise company value when it supplies better value to the customers. This case can be used in marketing management for MBA students and senior undergraduates. It provides an opportunity to discuss the subjects of customer lifetime value and marketing budget management.
This case can be used in marketing management courses and is particularly suitable for teaching strategic marketing and marketing budget management related to customer lifetime value. It can also be used to teach lessons about customer loyalty and the theory of strategic marketing based on customer lifetime value. This case study is intended for MBA students and senior management students.
This case study is aimed at allowing students to:
- Examine the deficiency of the traditional marketing strategy based on the theory of the 4Ps and recognize that the company and its customers should create value for each other.
- Learn how to measure a customer’s lifetime value, including profit per customer, customer acquisition cost, customer retention cost, customer loss rate, discount rate, etc.
- Identify factors affecting customer lifetime value and design a marketing strategy for the enterprise.
- Determine a specific marketing mix and marketing plan — including a marketing budget — for the company, according to the marketing strategy based on customer lifetime value.
China, Small, 2010
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