Hobby Lobby International and Hobby Lobby stores Inc. Case Analysis
Hobby Lobby International and Hobby Lobby Stores Inc. have identified potential clients within their market segment. Jolibert, et al. argue that identifying the customer segment is substantial for profit-oriented organizations, as they will work to serve the segments and views the segments as the key contributors to the fulfillment of the organizational mission and objective (69). Typically, both Hobby Lobby International and Hobby Lobby Stores Inc. have differentiating segments, and each company is working with the aim of reaching to as many customers as possible within their segment.
The customer segment for Hobby Lobby International is made up of male customers who are interested in buying the company’s product. For instance, 98% of the Hobby Lobby International customers are men (Max n.p.). Conversely, Hobby Lobby Stores Inc.’s major customers are women, especially customers in need of craft and art supplies products (Max n.p). The two companies are also differentiated according to their type. Hobby Lobby is an international company that is focusing on expanding its line of business, while Hobby Lobby Stores is a national wide company, located in Oklahoma City and a company with more than 600 locations (Max n.p.).
In the case study about the two companies, Mr. Cleveland, as the owner of Hobby Lobby International tries to use different strategies in solving the problem influencing the performance of his company. The first strategy that Mr. Cleveland tries to use is proposing a partnership between his company and Mr. Green Company (Max n.p). The two agree to work in a partnership, but the agreement does not work well for Hobby Lobby International. With the partnership failing to work for the two companies, Mr. Cleveland does not stop to work on the problem concerning the company. After Hobby Lobby Stores Inc. refuses to honor the partnership deal, Mr. Cleveland writes a letter to Mr. Green notifying him that his company should stop using the hobby trademark products, as this is influencing the Hobby Lobby International negatively, especially in the sale of the hobby products (Max n.p).
The most appropriate solution that Mr. Cleveland needs to use to resolve the problem relating to the brand confusion is changing the name of his company. Davis and Johnathan claim that when a company changes its name, it should identify its direction, values, and the reasons why it is necessary for rebranding (90). For Mr. Cleveland to change the name of his company, he should know that changing the name could be good for him, the employees, and the company. Mr. Cleveland can use the aspect of changing the name as a strategy to reconnect with the potential customers in the market. Moreover, changing the name will give Mr. Cleveland an opportunity to talk with the company’s stakeholders, which will be significant, as the stakeholders will give the owner of the company ideas about the brand name that is competitive and efficient for the business. From a personal perspective, changing the name will solve the problem that Mr. Cleveland’s business is facing, as it will inspire the workforce, generate pride in the brand, and changes the company’s perception for better.
The importance of changing the brand name for Hobby Lobby International is that the decision will enhance brand extension, especially when the company is launching a new product. Jolibert, et al. posit that businesses can develop and extend their brand consistently by changing or reiterating their brand name (215). Additionally, when Mr. Cleveland changes the company’s brand name, this will create brand awareness and link the company’s stakeholders with brand elements such as its name, logo, and the trademark. Finally, changing the company name will be a sign to its customers that the company embraces change as a strategy to do business.
Works Cited
Davis, Melissa, and Jonathan Baldwin. More Than a Name: An Introduction to Branding; with a Theoretical Commentary by Jonathan Baldwin. Lausanne: AVA, 2005. Print.
Jolibert, Alain, Hans Mühlbacher, Laurent Flores, and Pierre-Louis Dubois. Marketing Management: A Value-Creation Process. Basingstoke: Palgrave Macmillan, 2012. Print.
Max, Sarah. “A Small Brand Tries to Escape the Confusing Shadow of a Big Brand.” New York Times, 8 May 2014, p. B6 (L). Academic OneFile, go.galegroup.com/ps/i.do?p=AONE&sw=w&u=king56371&v=2.1&id=GALE%7CA367356081&it=r&asid=5c4ec7465d397a41f833290417aed10f. Accessed 2 Jan. 2017.
