DHP Case Study Analysis

This document presents a case study analysis of DHP Stores Inc., a Canadian retailer facing challenges in promoting their company and implementing a new credit card payment strategy. The analysis identifies symptoms of market failure, such as lack of promotional materials and customer awareness, and explores the root causes of these issues. The study proposes alternative solutions, including engaging trained managers, utilizing diverse advertising channels, and developing contingency plans. The proposed solution focuses on comprehensive advertising campaigns across various media platforms to enhance customer awareness and promote credit card usage. The implementation strategy emphasizes the use of social media and traditional media to reach a broad audience.

INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY

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INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY
Table of Contents
Part 1:...............................................................................................................................................3
Synopsis:..........................................................................................................................................3
Symptoms:.......................................................................................................................................3
Problem:...........................................................................................................................................4
Causes:.............................................................................................................................................4
Part 2:...............................................................................................................................................5
Alternatives:.....................................................................................................................................5
Proposed solution:...........................................................................................................................5
Implementation:...............................................................................................................................5
References:......................................................................................................................................6

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INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY
Part 1:
Synopsis:
D.H.P. Stores Inc (Dependable home product) is a retailer service provider company of Canada.
They are dealing with some issues related to promoting their company to reach to another level
and to satisfy their customers by providing the best service. As they are constantly facing with
some serious issues like lack of promotional materials in most of the stores and the customers are
also not aware about credit card payment (Solomon, 2014). As D.H.P has been initiated with the
new marketing strategy of using credit card while paying so their stuffs have the responsibility to
not only convince the customers about using credit card but also to give the proper information
about why to use credit card and what are the benefits of having a credit card. This case study is
mainly based on the promotional ideas and how to tackle with the problems. They are arranging
a meeting for both the stuffs and all the managers to discuss about the plan. After all brief
discussion about the problem they are coming with the solution of publishing it socially by
advertising campaigns (McDonald & Wilson, 2016). Even after implementing it in such
promotional way the result was not by their side. So they are coming with another solution of
giving full effort to promoting credit cards.
Symptoms:
Market failure can happen in the case of lack of promotional material. Not having the required
materials the company can’t fulfill the customer’s demand. Here supply and demand chain is not
stable.
Lacks of public goods, inefficient products are another reason of market failure (Baer et al.
2013).

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INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY
Lack of public interest and not having the proper information can leads to market failure. Only
advertising and cooperation is not enough to stay in market.
Basic needs of some products are not clear to a community can down the market value of the
product.
Price hike can be another reason and also the payable tax for each product is making it costly.
The effect of using different types of materials can be harmful to environment and it is also not
good for sustainable development.
Interest rate of credit card can be more expensive in such cases people tend to avoid paying by
credit card.
Security issues are another reason of it. As the data and information can be stolen or damaged by
any third party.
Problem:
Due to lack of resources in the stores the problem has been worsen day by day. D.H.P mainly
focuses on supplying Canadian tire and home hardware. To rise in the market their intention was
to invent the idea of credit card. Initially, the idea was to issue credit cards as many as possible
by promoting this idea (Storey & Hughes, 2013). The entire plan fails due to unorganized way of
decision taking.
Causes:
The plan fails due to lack of coordination of store managers.
Promotion by advertising and campaigns are not the only solution of marketing.
Customers are having security issues with credit card payment.
Customers are not interested in issuing credit card due to lack of information.

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INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY
Part 2:
Alternatives:
1. Engage trained and skillful manager in each store.
Advantage: Efficient and experienced managers can explain the related information better than
others. They can explain the reason why to opt for credit card is not risky.
Disadvantage: In case the managers are not updated with the latest information then the plan can
be failed.
2. Publish about the retail store in all possible ways like broadcasting in television, radio to
printing in newspaper and the hoarding in roads can make people aware of the product.
Advantage: Only advertising can’t reach to everyone so promoting in all possible way can give
better result.
Disadvantage: people who are not in touch of modern ways of advertising are still unknown
about everything.
3. There should always more than one plans are considered (Hardy & Thomas, 2014).
Advantage: In case one plan failed then another can be implemented.
Disadvantage: In meeting when everyone is supporting for a plan, but there is no surety of plan
B will be successful. So it is important to list out as many plans possible.
Proposed solution:
Among 3 of the alternative way of marketing, publishing is the best way to dealt with the
customers. It is important to be familiar with the product or the company name or brand and
advertising is the only way of making a product or service known to customer. Creative ideas are
implemented in advertising campaign.

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INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY
Implementation:
Advertising involves creating campaigns which can attract the customers. Social media platforms
like Twitter, Facebook, Instagram, and LinkedIn are the best way to reach to the customer
(Ahearne et al. 2014). Radio, television, newspaper and printing ads are another way to reach to
every community.

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INDIVIDUAL CASE STUDY ASSIGNMENT: DHP CASE STUDY
References:
Ahearne, M., Lam, S. K., & Kraus, F. (2014). Performance impact of middle managers' adaptive
strategy implementation: The role of social capital. Strategic Management
Journal, 35(1), 68-87.
Baer, M., Dirks, K. T., & Nickerson, J. A. (2013). Microfoundations of strategic problem
formulation. Strategic Management Journal, 34(2), 197-214.
Hardy, C., & Thomas, R. (2014). Strategy, discourse and practice: The intensification of
power. Journal of Management Studies, 51(2), 320-348.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle
River, NJ: Prentice Hall.
Storey, C., & Hughes, M. (2013). The relative impact of culture, strategic orientation and
capability on new service development performance. European Journal of
Marketing, 47(5/6), 833-856.