In May 2010, the “chief pain officer” of SalesBrain, a neuroscience-based marketing research and coaching company located in California, has been approached for advice by the marketing head of Digital Technology International (DTI), a Utah-based provider of technology solutions for the global publishing industry. DTI has been struggling with communicating the core value proposition of its offerings to customers, including leading newspaper publishers. Its frontline people are delivering messages that are technical, jargon-filled, and complex. Publisher-customers are unable to understand quickly how the technology solutions being offered by DTI can help them become competitive. The sales messages are also not consistent.<br><br>SalesBrain is suggesting a three-step process wherein it will identify the “pain points” being experienced by the publisher-customers of DTI; create a compelling set of claims that DTI could offer about its technology products; and guide its frontline salespersons towards developing appropriate sales scripts that they could use with prospective clients. SalesBrain is deploying the cutting-edge tools of neuroscience marketing in each of the three processes. The chief pain officer must choose between Layered Voice Analysis and Facial Action Coding System as a medium to serve the needs of DTI.
This case is a supplement to Ellen Moore (A): Living and Working in Korea. In this follow-up case, Ellen discusses how a major crisis was averted and reflects on what she learned during her assignment in Korea.
The CEO of Strong Tie received the draft 2008 financial statements for the company, which was a manufacturer of structural connectors used in the building industry. He began to question the company’s performance when he compared the statements to those of previous years. How were profits holding up given the intense price competition in the industry? Were attempts to lower costs through more automation paying off? Were the current problems in the U.S. housing market going to continue to reduce demand for connectors? How would lenders react to this poor performance? Was the company’s financing in danger?<br><br><br><br>After discussing the matter extensively with Strong Tie’s CFO, it was decided that an outside consultant should be hired to provide an independent analysis of the company’s recent performance and to provide suggestions for future action.
Accountant Sarah McIvor, a junior partner with PricewaterhouseCoopers, has been selected to conduct a financial review of Gemini Electronics Ltd. Gemini is an up-start American electronics company that recently went public and now wants to expand its business to rival the major Korean and Japanese producers. Before the company finalizes any expansion plans, Dr. Wang, the founder, feels it is prudent to conduct an independent evaluation of Gemini’s financial condition.
CFLs were a signature piece in Walmart's sustainability effort, and although by October 2007, Walmart's goal of selling 100 million compact fluorescent light bulbs (CFLs) had been achieved, the achievement actually highlighted how little CFLs had penetrated. With over 100 million households in the United States, this impressive-sounding result actually meant less than one CFL per residence on average. Walmart had much more work ahead in positioning and pricing CFLs to make them a viable presence in the lighting category. A public failure here could cause Walmart to lose momentum in the greening of its brand. Was the issue a matter of product, price, promotion, or positioning?
Nearly every dollar Bill and Elaine Jardine had earned over the previous decade had been invested in their farm and warehouse. They had spent more than $150,000 in land and equipment. And they had sunk into their business, Quail Cove Farms, immeasurable amounts of what Bill Jardine considered to be their biggest asset: their labor. They had lost nearly everything. Now, the couple had some soul-searching to do. The Jardines gave hard thought to which direction they wanted to go-if, for that matter, they even had a choice. What was the value, now, of the sweat equity they had gained from pursuing a dream of organic farming?
This case continues the story of Bill and Elaine Jardine from "Quail Cove Farms (A): One Night and a Big Decision." The Jardines, having moved into distribution, now face two decisions. First, they must evaluate whether they should continue to pursue each of their three channels of business (farming, retail sales, and distribution); second, they need to decide if they should shift their sales and marketing efforts to the internet with the help of an employee, Becca Williams.
By 2007, AirAsia had become one of the most successful budget airlines in the world. Having conquered Southeast Asia, and entered China and India, AirAsia was poised to solidify its place as one of the foremost budget airlines and one of the most consistently profitable globally. But company founder Tony Fernandes had bigger plans. From the outset in 2001, Fernandes had intended to offer long haul service, competing against the largest and most established airlines in the world. However, his advisors had urged him to focus on regional, short to medium distance service. With many successes under his belt, Fernandes was once again ready to tackle long haul. Despite persistent claims from industry insiders that low cost long haul flights would never be profitable, Fernandes pushed forward with the expansion. Hiring 36-year-old Azran Osman-Rani as the CEO for the new long haul venture, nicknamed X, was a critical step in this process. X's inaugural flight to Australia took place in November 2007. In early 2010, X received its eleventh aircraft and was flying to 15 destinations on three continents. However, over time the substantial differences between long haul and short haul operating requirements became more apparent. Consequently, the management decided to formally separate X from AirAsia. This separation, and the inherent challenges for X and its recently appointed head of Commercial Operations, Darren Wright included: (1) how best to leverage the extensive network of the regional sister company AirAsia in selecting new and profitable destinations for X, (2) how to increase revenues without raising ticket prices, (3) how best to globally position the airline's brand in non-Asian markets, (4) how to shift his marketing team's mentality away from a start-up mindset, and (5) how to prepare for a global initial public offering within the next 12 months.
In September 2011, the CEO of First Energy Private Ltd, a startup enterprise in the alternative energy industry in India, is facing a flashpoint. The company has commercialized the technology of biomass cooking stoves and has been providing, since 2007, clean and affordable cooking solutions to customers in rural India. A marginal hike in price of biomass fuel in early 2011 has, however, led to a steep fall in demand making the continuance in the rural household market unsustainable. The company does not have a level playing field in the household segment because the competitor product, liquid petroleum gas (LPG), enjoys price subsidy provided by the federal government. First Energy has been quick to find its bearings by targeting a niche market in the urban commercial market consisting of restaurants, eateries and hostels. While the margins are high in this segment, the volumes are low. The company must therefore build scale to be able to service the investments in plant capacity, which is being under-utilized. The case enables students to come up with strategies for market expansion for the CEO. They will also take a call on whether to exit from or hold on to the household segment where the margins are low but the volumes, in the light of the imminent de-subsidization of LPG, would be high.