Metabical is a new weight loss drug from Cambridge Sciences Pharmaceuticals intended for moderately overweight individuals. In anticipation of final FDA approval, the senior director of marketing, Barbara Printup, prepares for the product launch and must make several critical decisions. First, she must select the optimal packaging size for the drug which typically requires a 12-week course of treatment. Next, she must determine the appropriate pricing. Since most insurance companies do not cover weight-loss medications, price has a direct impact on the sales forecast. To establish the initial demand forecast, Printup considers three approaches based on different assumptions. Her final recommendations must consider long term profitability and meet the company's desired return on investment.The case includes a quantitative assignment for students.
Cambridge Sciences Pharmaceuticals (CSP) expects final approval for its revolutionary weight loss drug, Metabical. Metabical will be the only weight loss drug with FDA approval that is also clinically proven to be effective for moderately overweight people. Barbara Printup, Senior Marketing Director for CSP, must develop the positioning strategy and marketing communications plan in preparation for the launch of the new drug. Printup must consider the consumer decision-making process and the interaction between the consumer who purchases the drug and the health care provider who prescribes the medication. Despite promising medical studies and consumer research, poor positioning of the drug in the highly competitive market for weight-loss solutions could spell disaster. Students analyze market research data and consider the optimal positioning strategy and marketing communications program.
Marie Jackson becomes chief executive officer of Renfield Farms during a period of sluggish growth and an organizational crisis. Jackson develops a new vision statement and begins to experience some success but is met with some skepticism from internal employees because the company's structures and systems do not seem to support the new vision. This case focuses on how Jackson engages and leads a senior team in formulating a vision during a period of change.
Peak Sealing Technologies (PST), a manufacturer of premium carton sealing tapes, stresses technological innovation as the company's core value. But when a new regional competitor introduces a less expensive and inferior product, PST is faced with a decision that could conflict with their values. Product manager Emma Taylor must decide if the company should augment its existing high-quality product line with a cheaper, less effective product to compete with their competitor. However, this decision could cannibalize PST's premium line. Emma is faced with a key issue in product line management--determining the variety of products in the line that serve the same function. Students are introduced to the problems of "trading down" the product line and must consider whether the company's corporate values are a strength or liability. This case can be used effectively in a first-year MBA course on marketing management to illustrate concepts associated with the risk and strategy of introducing a product line extension. It also allows for more complex analysis that would be appropriate in an Executive MBA program or advanced MBA elective courses in Product Management, Business to Business Marketing, Sales Management or New Product Development.
Pemberton Products is a U.S. market leader in the cookie and bakery snacks segment of the sweet snack market. Looking to expand into the salty snack market, the company acquires Krispy Inc., a maker of salty snack crackers located in the southeastern U.S. To compete with premium cracker brands, Pemberton plans to reformulate and re-launch the Krispy brand as "Krispy Natural," which offers natural ingredients, improved taste, and revised packaging. Market tests in Columbus, Ohio show market share results that are double the company projections while results in 3 cities in the southeastern U.S. fall well below expectations. The marketing director must interpret the market test results, consider possible competitive responses to the new brand, and present his recommendation for a national rollout to the VP of sales and marketing.
Kay Sunderland is an account director at Attain Learning Inc., a business training solutions company. In January 2011, one of Attain's most important clients, Juan Nunez of Gramen Equipment Company, contacts Sunderland with a request: Nunez would like Attain content development director Mike Morgan to stop contacting him directly. Sunderland is surprised that Morgan, an experienced and talented contributor, is potentially jeopardizing the account by ignoring Attain's communications policy of restricting client-facing communication to the account director. Now Sunderland must decide how to handle the situation with both the client and her colleague Morgan.
After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men's market where it has a strong presence. Jackson Randall, the product manager for Clean Edge, struggles with how best to position the product for the launch. One strategy is to release Clean Edge as a "niche" product, targeting the high-end market of fastidious groomers looking for superior skin care products. Another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available. Randall meets internal resistance to the mainstream strategy from the product manager for the company's current, but aging, mainstream razor products and he must consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy and provide supporting economic analysis of his decision--not just for Clean Edge, but for its effect on the entire company.
Cambridge Sciences Pharmaceuticals (CSP) expects final approval for its revolutionary weight loss drug, Metabical. Metabical will be the only weight loss drug with FDA approval that is also clinically proven to be effective for moderately overweight people. Barbara Printup, Senior Marketing Director for CSP, must develop the positioning strategy and marketing communications plan in preparation for the launch of the new drug. Printup must consider the consumer decision-making process and the interaction between the consumer who purchases the drug and the health care provider who prescribes the medication. Despite promising medical studies and consumer research, poor positioning of the drug in the highly competitive market for weight-loss solutions could spell disaster. Students analyze market research data and consider the optimal positioning strategy and marketing communications program.
Metabical is a new weight loss drug from Cambridge Sciences Pharmaceuticals intended for moderately overweight individuals. In anticipation of final FDA approval, the senior director of marketing, Barbara Printup, prepares for the product launch and must make several critical decisions. First, she must select the optimal packaging size for the drug which typically requires a 12-week course of treatment. Next, she must determine the appropriate pricing. Since most insurance companies do not cover weight-loss medications, price has a direct impact on the sales forecast. To establish the initial demand forecast, Printup considers three approaches based on different assumptions. Her final recommendations must consider long term profitability and meet the company's desired return on investment.The case includes a quantitative assignment for students.
Applied Research Technologies, Inc. (ART) is a diversified technology company which has used its entrepreneurial culture and encouragement of innovation as an ongoing competitive advantage. The case concentrates on the challenges faced by Peter Vyas, the Filtration Unit manager, who must decide whether to request $2 million in project funding from the divisional vice president, Cynthia Jackson. Similar Filtration projects have failed twice before, damaging the credibility of the Filtration Unit and Vyas personally. Jackson has recently been challenged to turn around or shut down the unit. Students must determine a strategy from the perspectives of both a unit manager and a division VP. This two-tier focus provides the opportunity to analyze the management decision process at different levels of the organization. Topics include empowerment, project management, and managing innovation.
In November of 2006, senior executives at Culinarian Cookware were debating the merits of price promotions for the company's premium cookware products. The VP of Marketing, Donald Janus, and Senior Sales Manager, Victoria Brown, had different views. Janus felt price promotions were unnecessary, potentially damaging to the brand image, and possibly encouraged retailer hoarding; Brown believed the promotions strengthened trade support, improved brand awareness, and stimulated sales from both new and existing customers. The issue was complicated by a consultant's study of the firm's 2004 price promotions which concluded that these promotions had a negative impact on profits. Janus trusted the results, but Brown, believing the study assumptions were flawed and required further analysis, suspected the promotions had actually produced positive results. The pressing decision is whether to run a price promotion in 2007 and, if so, to determine what merchandise to promote and on what terms. The broader issue is what strategy Culinarian should pursue to achieve sales growth goals, and what role, if any, price promotion should play.
In January of 2005, Manchester Products Inc., a longtime leader in office furniture that only recently entered into the home furniture market, acquired Paul Logan's Furniture Division (PLFD). The acquisition of PLFD made Manchester an instant market leader in household furniture. A key factor in the value of PLFD has been the name of the company founder -- arguably the premiere name in high-end fashion and accessories, and a true lifestyle brand. However, Manchester has acquired rights to use the Paul Logan brand name for only three years. Jason Adams, VP of Marketing for Manchester, is responsible for designing a plan to transition the brand from the Paul Logan name to Manchester. He must develop the optimal timing and sequencing of the brand transition, assess the implications, and establish the appropriate mix of advertising and promotion programs to support the transition.
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.