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Jonathan Kutchins and Mark Cullen, managing partners of IT consulting firm Exeter Group, Inc., are considering four potential client engagements. Three of them involve prominent universities, an area of market strength for the firm, and one involves a top-tier strategy consulting firm, a new market for Exeter. Each of the projects has both attractive and unattractive attributes, with various degrees of upside and downside risk. As a relatively new and small IT consulting firm, Exeter needs to make careful choices about how it allocates resources to projects and it is not clear if the firm has the capacity to add all four projects at once. Thus Kutchins and Cullen have to decide which, if any, of these projects to do. In some cases they must also decide whether they want to try to restructure the nature of the engagement to better fit the firm's service model. Although young and small, the firm has grown successfully and is optimistic about its future prospects. Kutchins and Cullen thus want to make decisions about these very specific client engagements in the context of their overall strategy and the contributions of these engagements to helping the firm achieve its long-term goals.

BMW is faced with potential channel conflicts across several EU country markets. The case concludes the (A) case's exploration of BMW's approach to redesigning the channel in Greece. The case provides details on both headquarter and country head perspective on BMW's channel strategy.

BMW is faced with potential channel conflicts across several EU country markets. The case highlights BMW's approach to redesigning its channel in Greece. The case provides details on both headquarter and country head perspective on BMW's channel strategy.

Kiran Majumdar-Shaw, the CEO of Biocon has to make product launch timing, pricing, channel, and communications mix decisions relating to the launch of BioMAb, a new cancer drug in India.

Carl-Henric Svanberg, CEO of the Swedish telecom infrastructure company Ericsson, has to reorganize the recovering company in late 2003 after a major industry downturn. He is convinced that only a more market-orientated and customer-focused organization will be able to remain competitive in this maturing, high-technology focused industry. Presents his change project, in which the sales and marketing structure play a central role. Will his ideas allow the company to keep its customers and successfully go after new markets?

After its dramatic corporate turnaround, the Swedish telecom infrastructure company Ericsson hires a new CEO to bring the former Swedish flagship company back on track. Puts students in the shoes of Carl-Henric Svanberg, an industry outsider and CEO of locks group Assy Abloy, who does not hesitate a moment when he gets the call in early 2003. Looks back on the reasons for Ericsson's current situation and the recent restructuring programs that cut the company's staff and operating expenses in half. Presents Svanberg's vision for how to re-energize the ailing company and reach profitability once again, and gives students the opportunity to debate these issues.

The firm has to choose between an established brand, Tanishq, and a new skunkworks brand, GoldPlus, to go after the Indian plain gold jewelry market: Tanishq, initially targeted at a western customer, has undergone strategic retooling and has currently been repositioned to serve the "traditional yet modern" Indian woman. The brand still carries some baggage from its past. GoldPlus, on the other hand, is a new brand that is positioned to serve the plain gold wedding jewelry market. A variety of strategic, economic, organizational and brand investment reasons make the decision an important one.

Vendors that match specific sales capabilities to opportunities and provide thoughtful support can maximize their return over the long term. Those that use a four-pronged portfolio approach are likely to do better than their peers.

No question, Galen McDowell knew how to sell. He quickly hooked a big-league outfit, Kinan Motors, as a potential customer. He invited their representatives to come take a tour of the company and, while they were in town, visit the Red Ruby Club. The Red Ruby? That's a strip club. Galen assured CEO Bob Carlton that it was upscale and full of businesspeople. He said his reps had often made use of the club to woo important accounts away from rivals. As if to prove his point, Kinan quickly signed a multimillion-dollar contract with OptiMotors after the visit. Then April Hartley, Bob's first salesperson, quit. She had tried to build relationships with customers, but the really big accounts, it seemed, were looking for "more exciting stuff" than she could give them. Now Joan Warren--another saleswoman, and one who would happily close a deal anywhere she got the chance--is complaining because Galen won't let her go to the club with him. "I won't stand by and be disadvantaged simply because I'm a woman," she says. When does client entertainment cross the line? In R0604A and R0604Z, four experts discuss this fictional case study: John Brown, the director of institutional sales and customer relations at Fortis Investments; Katherine Frank, a former dancer who is now an author and postdoctoral fellow at the University of Wisconsin-Madison; Das Narayandas, a professor of business administration at Harvard Business School; and Denise Rousseau, a professor at Carnegie Mellon's Heinz School of Public Policy and Tepper School of Business.

No question, Galen McDowell knew how to sell. He quickly hooked a big-league outfit, Kinan Motors, as a potential customer. He invited their representatives to come take a tour of the company and, while they were in town, visit the Red Ruby Club. The Red Ruby? That's a strip club. Galen assured CEO Bob Carlton that it was upscale and full of businesspeople. He said his reps had often made use of the club to woo important accounts away from rivals. As if to prove his point, Kinan quickly signed a multimillion-dollar contract with OptiMotors after the visit. Then April Hartley, Bob's first salesperson, quit. She had tried to build relationships with customers, but the really big accounts, it seemed, were looking for "more exciting stuff" than she could give them. Now Joan Warren--another saleswoman, and one who would happily close a deal anywhere she got the chance--is complaining because Galen won't let her go to the club with him. "I won't stand by and be disadvantaged simply because I'm a woman," she says. When does client entertainment cross the line? In R0604A and R0604Z, four experts discuss this fictional case study: John Brown, the director of institutional sales and customer relations at Fortis Investments; Katherine Frank, a former dancer who is now an author and postdoctoral fellow at the University of Wisconsin-Madison; Das Narayandas, a professor of business administration at Harvard Business School; and Denise Rousseau, a professor at Carnegie Mellon's Heinz School of Public Policy and Tepper School of Business.

An abstract is not available for this product.

Highlights issues that a multidivision firm faces as it moves from managing products for profit to managing customers for profit.

Perelson Weiner LLP, a successful accounting firm in New York City, is re-evaluating its incentive strategy as it makes plans to grow its business.

In November 2004, The Wall Street Journal reported that consumer electronics retailer Best Buy's new customer approach was to shun the "devils" among its customers. The "customer centricity" initiative, which was led by Best Buy's CEO Brad Anderson, was based on an analysis of the purchase histories of several customer groups. The central idea was to revamp stores according to the most lucrative types of customers they served--the "angels" among the company's customers. Encourages an assessment of Best Buy's strategy and, more generally, of the challenges and opportunities in managing customers for profits.

An abstract is not available for this product.

Spreadsheet supplement for case 506-020.

Since the 1980s, Kingsford had continued to enjoy steady, moderate growth of 1% to 3% in revenues each year. During most of this time, the charcoal category as a whole grew as well. However, the summer of 2000 represented the first softening in the category in several years. Forces students to step into the brand manager's shoes, analyze the reasons for the current situation, and come up with recommendations related to pricing, branding and advertising, and merchandising and promotion of the Kingsford brand.

Companies often apply consumer marketing solutions in business markets without realizing that such strategies only hamper the acquisition and retention of profitable customers. Unlike consumers, business customers inevitably need customized products, quantities, or prices. A company in a business market must, therefore, manage customers individually, showing how its products or services can help solve each buyer's problems. And it must learn to reap the enormous benefits of loyalty by developing individual relationships with customers. To achieve these ends, the firm's marketers must become aware of the different types of benefits the company offers and convey their value to the appropriate executives in the customer company. It's especially important to inform customers about what the author calls nontangible, nonfinancial benefits--above-and-beyond efforts, such as delivering supplies on holidays to keep customers' production lines going. The author has developed a simple set of devices--the benefit stack and the decision-maker stack--to help marketers communicate their firm's myriad benefits. The vendor lists the benefits it offers, then lists the customer's decision makers, specifying their concerns, motivations, and power bases. By linking the two stacks, the vendor can systematically communicate how it will meet each decision maker's needs. The author has also developed a tool called a loyalty ladder, which helps a company determine how much time and money to spend on relationships with various customers. As customers become increasingly loyal, they display behaviors in a predictable sequence, from growing the relationship and providing word-of-mouth endorsements to investing in the vendor company. The author has found that customers follow the same sequence of loyalty behaviors in all business markets.

The CEO of EFL (India), a direct sales organization, must decide which changes to the sales compensation systems would better motivate his sales reps and improve their sales performance.

Describes in detail customer management strategies in business markets, including selection decisions, design and management of customer relationship strategies, monitoring the health of customer relations, and linking the vendors' customer management effort to customer profitability.