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    MKT 310 PPT Completed

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    tylerherula
    Chegg.com began as an online textbook rental company in 2007 and has since expanded to offer additional study tools and homework help. While word-of-mouth initially drove customers, Chegg recognizes the need to better compete with other textbook companies. A student survey found many were unaware of Chegg's offerings. The survey aimed to identify Chegg's target markets, strengths/weaknesses, and competition to help Chegg improve. Key findings showed segments of online vs retail buyers and opportunities to target more online shoppers.

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    MKT 310 PPT Completed

    Uploaded by

    tylerherula
    147 views24 pages
    Chegg.com began as an online textbook rental company in 2007 and has since expanded to offer additional study tools and homework help. While word-of-mouth initially drove customers, Chegg recognizes the need to better compete with other textbook companies. A student survey found many were unaware of Chegg's offerings. The survey aimed to identify Chegg's target markets, strengths/weaknesses, and competition to help Chegg improve. Key findings showed segments of online vs retail buyers and opportunities to target more online shoppers.

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    Chegg.com began as an online textbook rental company in 2007 and has since expanded to offer additional study tools and homework help. While word-of-mouth initially drove customers, Chegg recognizes the need to better compete with other textbook companies. A student survey found many were unaware of Chegg's offerings. The survey aimed to identify Chegg's target markets, strengths/weaknesses, and competition to help Chegg improve. Key findings showed segments of online vs retail buyers and opportunities to target more online shoppers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    147 views24 pages

    MKT 310 PPT Completed

    Uploaded by

    tylerherula
    Chegg.com began as an online textbook rental company in 2007 and has since expanded to offer additional study tools and homework help. While word-of-mouth initially drove customers, Chegg recognizes the need to better compete with other textbook companies. A student survey found many were unaware of Chegg's offerings. The survey aimed to identify Chegg's target markets, strengths/weaknesses, and competition to help Chegg improve. Key findings showed segments of online vs retail buyers and opportunities to target more online shoppers.

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    CHEGG.

    COM
    By: Cara Byrne, Tyler Herula ,Nicolas Martin James Knepper, Andrew Gambino

    Chegg.com began in 2007 as an online alternative for cheap textbook rentals.


    Now services 7,000 campuses nationwide Added tools like e-books, homework help, and study tools to help students with their courses. Marketing strategy began as word of mouth

    Problem: Staying competitive


    Initial pull strategy is not capable to competing well with other companies offering textbook rentals Short questionnaire suggests many students were unaware of Chegg.com and what the company offers Developed two segments: Those who purchase from online companies and those who purchase from the university bookstore

    Purpose
    We wanted to pinpoint the key issues that have been holding Chegg back in todays market.
    Designed a questionnaire to specifically address these issues.

    Ways Chegg will Benefit


    Identifying our competition
    What are they doing that makes them successful? How can we do this better?

    Identifying our target market


    Who currently buys with Chegg? Which demographics do we need to target more?

    Identifying strengths and weaknesses


    What are we doing that sets us apart? How can we improve overall?

    2 Segments
    Online VS Retail Bookstores We felt it would be easiest to separate this way, as people could easily relate to both these categories. Also, we wanted to pinpoint just how many people are already buying their books online with another company such as Amazon. These consumers are the ones we feel it would be easiest for us to target, as they already probably prefer the online convenience of purchasing books.

    Would We Change Segments?


    Overall, we were very pleased with the information and data we gathered from these two segments. We were able to see just who was familiar with Chegg and also our main competition. With this information, Chegg will be able to see what their competition is doing and where they need to spend their money on advertising and marketing. If we were to do this research project over again we would have switched online users as one of segments and switched it to Chegg users. Results may have been similar but we feel it would better pinpoint who our target demographic is and where our company is lacking overall.

    Questionnaire Design
    PART I Gaging the Participant These questions focused on the actions of the Online purchaser vs. the Retail Bookstore Purchaser PART II Usefulness of Chegg Format: Agree or Disagree Examples: Chegg saves me money Chegg is more convenient PART III Who uses Chegg Format: Most likely or Least Likely Examples: Men Women Middle Class Undergraduate Students PARTS IV-VI Stemmed from the 5 values Format: Yes or NO Examples: Feelings Motives Curiosity PART VII Used an 8 point Scale Format: Strongly Agree / Strongly disagree Examples: I am always satisfied using Chegg I always Purchase from the bookstore PARTVIII Whos Are Our Participants Format: Asked demographic questions

    How we gathered our participants

    DePaul

    Facebook

    Twitter

    - Word of Mouth

    Importance of Crosstabs and Ttest to the Framework


    BUYER A. Values T-Test B. Demographic Profile Crosstabs C. Lifestyle Profile Crosstabs D.MKT Segmentation Crosstabs / T-Test PRODUCT A. Attributes Crosstabs B. Competition Crosstabs C. Map Crosstabs/ T-Test SELLER A. 4Ps Crosstabs

    Buyers Needs
    Functional: budget, benefits financial situation, convenience, saves time, more options Social: Undergraduates, graduate students, students with children, males Emotional: Confident, satisfied, unsecure, wise, thrifty, like I received a deal Conditional: Work schedule, busy life schedule, change in income, transportation problems, too busy with other things Epistemic: to save money and time, alternative, dissatisfied with other options

    Profile
    The demographic profile of our customer is 18-24, male and female college students living in the city or suburbs. -Spend $201-$400 on textbooks Lifestyle Profile -Tech savvy and busy life schedule of college undergraduates

    Market Segmentation

    Market Segments
    Base: College Undergraduates Segments: College Undergraduates on budget

    4 Ps

    Product: Innovative Promotion: Pull Pricing: Penetration Place: Selective

    Product/Positioning
    Product Attributes: Affordable, secure, online, convenience, variety of options, reduced transaction costs, one stop, and centralized platform for college students. Competition: Amazon, Barnes and Noble, textbook.com, Ecampus.com, collegebookrentals.com, University book stores, Retail book stores

    Positioning Map

    Crosstab Table
    Question: How often do you use each of the following two text book outlets? Online A/B Retail A/B 1. Never - 10.4%/6.9% 6.3%/2.1% 2. Occasionally 16%/44.4% 19.4%/15.3% 3. Every Quarter 38.2%/13.2% 9.7%/18.1%

    Crosstab Table: Potential Problem

    Crosstab Table: Potential Solutions


    Part seven of questionnaire Discounted prices Online purchasing is no longer complicated Comfortable using the internet High customer satisfaction Convenient online return policy for book rentals

    T-Test

    3 solutions
    3 Pros and 3 Cons for each solution

    Open up a retail location


    Pros
    1. Chegg.com may establish itself in the community as a bookstore such as a Barnes & Nobles and still keep its online service. 2. For people that enjoy holding and seeing the physical copy of their book instead of looking for everything on the computer. 3. For people that do not like imputing their credit card information online.

    Cons
    1. There would be added costs of purchasing the necessary equipment to set up a book store 2. Would be unsure of how to run a retail location 3. Would have to compete with a large existing company Barnes & Nobles

    Team Up with College Campuses


    Pros 1. Already have a large consumer base. 2. Can market with the school to its students. 3. Can offer services that the college doesnt offer such as rental.
    Cons 1. They have to adhere by the rules and regulations that the college puts in place. 2. The college may not want to team up with Chegg.com and would rather operate the colleges own book service. 3.Would incur costs of starting operations at 100+ colleges around the nation.

    Market More Broadly


    Pros 1.Can reach out to more students (their main consumer base). 2. May be able to reach out to other consumer bases, other than students. 3. Can increase their profits by expanding their consumer base. Cons 1. May cost an added amount to reach out to consumers in different ways. 2.May not market to the right segments. 3. Can be too expensive to advertise in certain areas.

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