PART C: CASE Instruction: Answer ALLthree questions; worth 20 marks. Going Viral Makes for Healthier Firm Dr. Bob Wagstaff (a biochemist and nutritionist) developed the Orabrush to escape bad brush- causing particles off or of our tongue. He got the Orabrush patented and approved by the Food Drug Administration (FDA). He got it manufactured and worked hard to get it onto the shelves of drugstores and supermarkets. He had some success with smaller chains, but sales were below his expectations. He tried making an infomercial, which cost him around $40,000, but it produced only a few hundred more Orabrush sales. Thinking bigger marketing clout (power) would make the product into a success, he tried marketing the patent to oral hygiene companies, but no one took him up on this offer. He went to a marketing class at Brigham Young University in the United States and received advice from students in the class. He hoped that the young people could tell him how to sell more Orabrushes over the Internet. A survey a class team conducted showed 92 percent of the respondents (students) wouldn’t buy an Orabrush online, and the students on the team concluded that the Internet approach was not workable. However, another student in the class, Jeffrey Harmon, had a different interpretation. Jeffrey suggested that with millions of people watching videos on the Internet every day, getting 8 percent of the group to buy an Orabrush would still be an enormous (a huge) market. After class, Dr. Bob asked Jeffrey to help him market Orabrush on the web, giving pitchman for $100. He got scriptwriter friend Joel Ackerman to write the script and film major Devin Graham to film the video. Total cost? About $500. It was actually recorded in the back room of a pool hall – so that really is a clinking sound in the background of the video. The video went viral on YouTube, raking up (collecting) millions of views and igniting sales of the Orabrush, with close to 1 million brushes sold over the next 2 years. (325 words) Source: Jerome A. Katz and Richard P. Green (2013) Entrepreneurial Small Business , 4th Edition, McGraw-Hill College, USA, p.344 with minor changes made by Yusof Ismail, IIUM. 17
QUESTION C1 What could be the explanation for YouTube videoinfomercial to be performing better thanprofessionally produced video? (10 marks) 18
QUESTION C2 Was it realistic for entrepreneur Dr. Bob to target for 8 percent potential market? Take a position whether you agree or disagree and justify your decision. (10 marks) DO NOT WRITE ANYTHING ON THIS AND NEXT PAGES (The examiners will ignore your writing) 19
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