The case recounts the dilemma faced by Donnie Boyd, the owner of a small barber shop in downtown Toronto in the second quarter of 2020. The COVID-19 pandemic had spread throughout the world but its consequences were only partially known in mid-2020. The first wave of the virus had almost run its course in Canada but people feared (correctly so, as it happens) that subsequent waves would strike, further devastating the economy and specifically small businesses such as Boyd's Barber Shop.
StockX is the world's first "stock market of things", a consumer marketplace for high-demand, limited edition products that operates exactly like the stock market. The underlying concept is to allow participants to buy and sell authenticated products in a live marketplace where they trade anonymously (with stock market-like visibility). The StockX exchange offers buyers and sellers historical price and volume metrics, real-time bids and offers (asks), time-stamped trades, individualized portfolio tracking and metrics, as well as in-depth market analysis and news. A partnership with Eminem, a native of Detroit, got StockX off the ground by creating exclusive content and access to rare sneakers from the rapper's personal collection. To build on this momentum, StockX needs to develop a growth strategy.
Rideau Artisanal Chandlery (RAC) manufactures and sells a large range of artisanal candles through a variety of specialty retailers in Canada and parts of the United States. It has gained market leadership by constantly adding innovative scents to its product line. The recent addition of its own online store is causing conflicts within RAC between the head of the sales operation in charge of servicing RAC's distributors and the head of RAC's online operation. The lower prices charged by the online store are seen as a threat to the traditional channel, but the online store has shown rapid growth and yields higher margins.
The electric guitar market is both enticing and daunting for a small company - a multi-billion $US sector that has grown almost constantly since the 1960s, but where competition is based as much on image as on substance. The market is naturally fragmented (similar to the market for many musical instruments), yet dominant players make entry and sustenance difficult. While Asian producers or branded imports dominate the low and mid-priced market, collectors and serious players seek high-end branded or handmade instruments that can be resold with only minor loss, if any. To augment collector value, high-end guitar manufacturers constantly modify components, making short-run series with unique features (often specified by "name" musicians and sold under their signature). For established brands, vintage instruments, and handmade instruments, used guitars may sell for their original purchase price or surprising multiples thereof; the value of some pieces increases after only ten years. From this standpoint, experienced buyers can make essentially risk-free purchases. The case tells the story of Joe Naylor, the owner-manager of Reverend Guitars, a small company that made a startling impact on the electric guitar market with a clever use of innovative products, innovative marketing and innovative use of the internet to a) leverage an existing community and b) build a new one.
The case takes place in 2006 and is focussed on Binatone's stabilizer business in Nigeria. Stabilizers are used in many developing countries to transform irregular current (from wall outlets) into a current that is safe for electrical appliances and equipment. Binatone's 1000W stabilizer business was under pressure due to multiple factors. The first source of pressure was that the market had become increasingly price sensitive. The buyers of stabilizers seemed unresponsive to quality differences between different brands in the 1000W category. Second, the market was flooded with low-priced, low quality brands that were not government approved. Finally, the Nigerian government has recently enacted a new set of regulations to ensure the safety of electrical equipment throughout the country. The regulations forced legitimate manufacturers like Binatone to go through a long, expensive and unpredictable approval process. Faced with this situation, management at Binatone was contemplating a number of potential responses to revitalize its 1000W stabilizer business. These included the possibility of changing the standard mark-up policy employed for all Binatone products, the launch of a 1000W stabilizer line extension, and new distribution and communication policies.
Firms put enormous intellectual and financial resources into creating differentiated products or services for their consumers. However, in many situations, differentiation may not be a profitable strategy. Spells out the conditions under which it is profitable to differentiate and those when it is not. Consumers learn about alternatives from advertising, and many consumers do not see advertising for all relevant alternatives. As a result, a significant fraction of consumers make decisions with limited information about the available alternatives. The value of creating differentiated products is ambiguous when awareness of products and their characteristics is the key determinant of consumer behavior.
This case charts the process of the souring of the Acela Express, a joint venture of Alstom and Bombardier with Amtrak, the US rail passenger service. Alstom and Bombardier won the contract to install high-speed rail service between Boston and Washington. Soon after the Acela's launch, technical problems with the train were severe and Bombardier's relationship with Amtrak became acrimonious. Both sides in the dispute made legal moves and they continue as of the writing of this case. The case examines the histories of the companies involved, the relationship between the respective parties and presents the technological background to the Acela Express. The goal is to highlight key points in the management of relationships for large-scale projects and to explore a number of issues in technology licensing.
In response to changes in the European small car market and the success of the Renault Twingo, Ford decided to launch a new small car, the Ford Ka. Before Gilles Moynier can get to the specifics of the marketing strategy to launch the Ford Ka, he needs to decide how to segment the market and who to target. The market research firm has conducted a series of studies among potential small car buyers and now the data must be analyzed and interpreted.
In response to changes in the European small car market and the success of the Renault Twingo, Ford decided to launch a new small car, the Ford Ka. Before Gilles Moynier can get to the specifics of the marketing strategy to launch the Ford Ka, he needs to decide how to segment the market and who to target. The market research firm has conducted a series of studies among potential small car buyers and now the data must be analyzed and interpreted.
In response to changes in the European small car market and the success of the Renault Twingo, Ford decided to launch a new small car, the Ford Ka. Before Gilles Moynier can get to the specifics of the marketing strategy to launch the Ford Ka, he needs to decide how to segment the market and who to target. The market research firm has conducted a series of studies among potential small car buyers and now the data must be analyzed and interpreted.
The case focuses on the launch of McDowell's Vintage Premium Indian Whisky in the mid-1980's (the dates used in the case are later and exchange rates and prices have been adjusted accordingly. The essence of the marketing challenge faced by the marketing manager is unaffected by the later dates). McDowell must deal with a common dilemma faced by domestic firms in developing economies where growth frequently produces a greater concentration of wealth at the upper end of the market. Frequently domestic products in developing nations are perceived to be of poor quality and do not have the cachet of well-known international trademarks. As a result, the growing affluence of the middle class in these nations can lead to increasing consumption of high price, high margin imports while domestic products are restricted to the low price/high volume business where it is difficult to be profitable. To address this problem, McDowell has developed a product that compares favourably in taste tests with imported products however; it does carry the baggage of being a domestic brand. The case considers the problem of the marketing manager for McDowell's Vintage PIW who must choose a positioning and marketing strategy for his product. An important decision is whether the new product should be positioned as an acceptable alternative to imported scotch or whether it should be positioned as the best tasting domestic product. A further problem for the manager is to choose an appropriate marketing strategy for the product given the size of the country and the difficulty of reaching the target market. The timing of the case is 6 months before the scheduled launch for the product. The manager needs to finalize the positioning for the new product. In addition, the manager is considering several alternative strategies for the product that involve difficult decisions in terms of distribution, promotion and packaging.
In response to the changes in the European small car market, Ford decided to launch a second small car, the Ford Ka. The Ford Ka has already been developed, the production capacity determined, and the launch set for October 1996 in France. Before Gilles Moynier can get to the specifics of the marketing strategy, he must decide who the target customer for the Ford Ka should be.
Case B reveals that Ford chose an attitudinal segmentation and presents initial sales results. The change in the segmentation approach made it difficult to assess the success of the launch and to determine what needed to be done next to continue to build the brand.