CASE ANALYSIS:

Egg Farmers of Canada

You are a Marketing Manager at Egg Farmers of Canada, an organization dedicated to promoting the interests of Canadian egg producers. Your main responsibility as the Marketing Manager is to oversee the ongoing marketing campaign that promotes egg consumption among Canadians. Some of your past advertising campaigns have received awards for creativity. However, this does not seem to be translating into business results. You have just reviewed the latest quarterly sales report, and the numbers are not looking good. Canadians are consuming less and less eggs, and this trend is particularly bad among young adults 16-24 years of age. Past marketing research showed that this market segment doesn't understand the health benefits of regular egg consumption, don't see eggs as a meal and also believe there are health risks from eating eggs too often. As mentioned, they don't see eggs as a meal and are opting for fast food and other ready to eat, easy to prepare foods instead. You know that your boss, VP of Marketing Mara Shumer is going to be worried about the latest quarterly sales results when she sees them. You try to anticipate what she might say. In preparation for your weekly meeting with Mara, you start putting together a Draft Project Charter for a new project you would like to recommend to her. To address the declining sales results, you would like to propose a re-branding effort for Egg Farmers of Canada. This will involve running additional marketing research studies to better understand young people's attitude towards eggs, having the creative agency come up with new ideas for a marketing campaign (you think it's time to try something different), designing a multi-media advertising campaign to re-launch and reinvigorate the Canadian Egg brand - all of which require input and approvals from the provincial Egg Farmer associations across the country. Your advertising materials will need to be translated to French and the new branding will need to be distributed to all egg farmers to be used on any of their promotional materials and packaging. You and Mara have spoken about this before, so you think she will be supportive of this project. Of course, the VP of Marketing Research, Shelly Ahmed, will have to agree to dedicate resources to the marketing research part of the project (you have heard that her team is under-staffed and very busy), but you think Mara might be able to help convince Shelly to get on board. Brand relaunches are not a cheap endeavour; previous similar efforts cost up to $4 Million. You only have $3 Million left in this year's Marketing budget allocated to you. You wonder whether it is worth asking the Chief Financial Officer, Sia Weng, for more money for the project than what you already have in your budget. You know that the organization is strapped for money this year, so you assume that Sia won't give you the remaining $1 Million to run the project, and you will probably have to figure out to make the project happen for the $3 Million you have left. Based on your organization's financial criteria for projects, your new marketing campaign will have to increase egg sales in Canada by at least 8%. You don't think this should be a problem; based on your analysis, this can be achieved by focusing the marketing efforts on the high-potential 16-24 year-olds. Since food is a highly-regulated category in Canada, you make note that any new marketing materials will need to comply with Canadian advertising rules. You get started on the Project Charter for "Canadian Egg Re-Branding Project".

INSTRUCTION

Tasks Associated with the Cost of Quality

Include a list of tasks fthat are associated with quality. Isolating them into a separate list enables you to:

• Calculate cost of quality for the project
• Assign quality task responsibilities

Conformance Tasks

List Quality Planning, Assurance and Control Tasks

Task	Resource(s)	Work Effort	Cost Estimate	Responsible
1.1 Create Project Requirements	1 Marketing Manager 1 Marketing VP	8 hours	$356	Kevin Li

Non-conformance Tasks

List Tasks that may be necessary if quality standard are not met at each step of Quality Assurance or Quality Control.

Task	Resource(s)	Work Effort	Cost Estimate	Responsible
4.2 Revise script to meet Legal Department feedback (if script not approved by Legal)	1 Copywriter	8 hours	$252	Mariam Luzi

TOTAL COST of QUALITY

Sum of all Conformance and Non-conformance costs.