Polar Challenge was a company that offered an annual 320-nautical-mile race to the magnetic North Pole organized by Arctic experts. It had been successful in the United Kingdom, establishing marketing partnerships with the BBC, Sony, Fujitsu and others. Polar Challenge saw the United States market as untapped potential for both sponsors and racers. In 2008, with the centennial of polar exploration approaching in 2009, the company decided to offer the race to Americans. The director of marketing is given responsibility for establishing a presence in the United States, but he soon finds that U.S. companies and media outlets do not have the level of interest he expected. In addition, companies worldwide were cutting back on advertising spending in response to the global economic crisis. This case examines a number of issues focused on expansion into new markets and resource commitments to such endeavours. It can be used to discuss the importance of understanding the target market, targeting the unique needs of different customer segments, adapting product offerings to international markets, and establishing realistic goals.
Polar Challenge was a company that offered an annual 320 nautical-mile race to the magnetic North Pole organized by Arctic experts. It had been successful in the United Kingdom, establishing marketing partnerships with the BBC, Sony, Fujitsu and others. Polar Challenge saw the United States market as untapped potential for both sponsors and racers. In 2008, with the centennial of polar exploration approaching in 2009, the company decided to offer the race to Americans. The director of marketing is given responsibility for establishing a presence in the United States, but he soon finds that U.S. companies and media outlets do not have the level of interest he expected. In addition, companies worldwide were cutting back on advertising spending in response to the global economic crisis. This case examines a number of issues focused on expansion into new markets and resource commitments to such endeavours. It can be used to discuss the importance of understanding the target market, targeting the unique needs of different customer segments, adapting product offerings to international markets and establishing realistic goals.
This is an MIT Sloan Management Review article. When consumers resist adopting an innovation because it requires them to alter established habits, the innovation is called a resistant innovation. Uses a study involving the diffusion of screwcap wine closures in three countries--Australia, New Zealand, and the United States--to analyze strategies for marketing a resistant innovation. For winemakers, screwcap closures represent a solution to "cork taint," a quality problem that can be caused by poor-quality corks and that can affect wine flavor. But consumers have shown resistance to screwcap closures, associating them with cheap wines or preferring the tradition associated with cork. However, among wine consumers in Australia and New Zealand, screwcaps have now achieved widespread acceptance. But 2005 wine industry statistics showed that less than 5% of U.S. wineries used screwcaps on fine wines. What is the reason for this difference? Earlier research in 2004 had found few differences between U.S. wine consumers and those in Australia and New Zealand--except in their attitudes toward screwcaps. Interviews decision makers at more than two dozen wineries in the three countries, and concludes that winemakers in Australia and New Zealand had generally taken a different approach to marketing screwcap wine closures than United States wineries did. Concludes that under certain circumstances coopetition strategies, which involve some cooperation among competitive firms, can be an effective strategy for marketing a resistant innovation. Suggests that managers should analyze the marketing problem the new innovation faces and the resources available to address it; consider the kind of specific resources and knowledge that might be exchanged during coopetition; and evaluate the industry climate, including the role of trade associations and industry experts.
Following a five-year search for a profitable, technologically-driven branded consumer products business with international growth potential, The Gillette Company announced its intended acquisition of Duracell. The focus of the case is on assessing the risk of Duracell and the measurement of a discount rate for valuation. The case is particularly rich because of the changing risk profile of Duracell.