Download - R&R Case Analysis

8/9/2019 R&R Case Analysis

1/6


2/6

06 AUG 2O14

• uest!'ns ,y $!/se%

• T? Gu!de ')ted t' ,e 'ny t$e !ens'(

• Sta(t!n. u) a entu(e !t$ ' 'st !n!t!ay as a $aen.e

• Eduat!n. ?entu(e Ca)!ta!sts a,'ut t$e dea as a ,a((!e( !n

!tse%

• T$e(e as a $!.$ (!s t' (eate a t(!!a ate.'(y t$at T(!!a

Pu(su!t d!dn=t 'e(

@" H' d!d $e 'e('/e t$e/*

Re!ss ad')ted a(!'us st(ate.!es t' dea !t$ t$e /a7'(

$aen.es $e %aed du(!n. t$e )ann!n. and e8eut!'n '% t$e

entu(e" T$e /et$'ds $e ad')ted e(e;

• Two-tiered approach for advertising – Re!ss

d!st!n.u!s$ed ,eteen t$e /ass /e($and!se(s and t$e

de)a(t/ent.!%t st'(es" T$e st(ate.y as t' >u!y se t'

u)sae (eta!e(s $' 'ud esta,!s$ a %u (eta!-/a(-u)

$!$ e(e usuay de)a(t/ent st'(es" Re!ss e/)'yed t'

d!Be(ent sets '% (e)s %'( t$ese $annes" C'')e(at!e ads

as a )'e(%u att(at!'n %'( d!Be(ent ,uye(s and t$e st'(es'ud ,e ased %'( /!n!/u/ )u($ase '(de(s !nstead '%

,e!n. $a(.ed %'( ads !t$ t$e!( na/es !n !t"

• Teaming up with Kaplan – Re!ss used $!s st('n. net'(

t' see $e) %('/ a)an $' as $!s 'n.-t!/e %(!end and

tea/!n. u) !t$ $!/ t' seu(e a !ne '% (ed!t %('/ $!/ t'

)u($ase su))!es %'( !n!t!a (un" a)an 'ud '( 'n


3/6


4/6

06 AUG 2O14

Revenue @ 12.5 per unit 7,250,000Variable CostsCOGS @"1 )e( un!t 13:J3000Ad A'ane F @3623F00


5/6

06 AUG 2O14

• Re!ss as )ass!'nate t'a(ds $!s !dea '% T(!!a Ga/e and

d!d ee(yt$!n. $e 'ud t' e8)'(e ne /et$'ds t' /ae !t

suess%u"

• H!s ay '% d'!n. ,us!ness as e(y /'t!at!n. as $e t''

a(e '% $!s su))!e(s ,y $a(.!n. t$e/ %u /a( u) and

en'u(a.ed saes (e)(esentat!es" He )('ed $!s t(ust 'n

a)an and T? Gu!de $!$ /ade t$e/ (eady t' $e) $!/"

He as as' a,e t' ,u!d a 'ya '(%'(e as $e 'ud

aays )ay 'n t!/e"

• H!s (eat!e ays '% t$!n!n. $e)ed $!/ (edue 'st us!n.

t$e suess%u /a(et!n. )an de!sed ,y $!/"

• He aays e)t a 'se at$ 'n t$e $an.!n. /a(et

dyna/!s and )anned t' !nt('due a ne .a/e L#HOOE

IT as $e ne t$at T(!!a 'ud 'se !ts )')ua(!ty s''n"

6" #$at as t$e ,(eaeen %'( R&R3 and $at as !t %'( a ,!.

)aye( !e Pa(e( +('s*

T$e 98ed 'sts %'( dee')!n. T(!!a .a/e %'( R&R as

F03000" As' s'/e @03000 as needed t' 9nane t$e 9(st

)('dut!'n (un" R&R 'ud ,(ea een at a))('8!/atey

J03000" On t$e 't$e( $and3 Pa(e( +('s" !nu((ed 98ed 'sts '%

('u.$y 2F03000 %'( des!.n and dee')/ent a'n. !t$

ade(t!s!n. and )('/'t!'n ,ud.et '% at east 130003000" S'

'/)a(ed t' R&R3 Pa(e( +('s 'ud ,(ea een at a /u$

$!.$e( 'st '% 132F03000"

:" #$at as t$e /!n!/u/ S!e '% t$e /a(et %'( T? .u!de-

t(!!a .a/e – %('/ T? Gu!de & R&R )'!nt '% !e*

A'(d!n. t' T? .u!de and R&R )'!nt '% !e t$e /!n!/u/ s!e

'% t$e /a(et %'( T? .u!de – T(!!a .a/e !s @43000 un!ts" T$!s


6/6

06 AUG 2O14

as ,ased 'n t$e auat!'n '% 0"2 'ne(s!'n '%

a))('8!/atey 1:30003000 ')!es '% T? Gu!de /a.a!nes !n

$'use$'ds"

------------------------------------------------------