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.
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.