Hunley, Inc. manufactures rods for the niche sport of fly fishing. It specializes in freshwater rods that are perceived as "middle-market" products, targeted at "avid" fly fishers, In the face of declining revenue and a decreasing price per unit sold, the company's president is considering several growth options, including introducing a rod made from state-of-the-art materials (moving up-market) and expanding distribution into Walmart (down-market). Hunley's president must decide whether either option is feasible and if so, what kind of marketing plan is necessary for each to succeed. If neither option is chosen, he must determine what other ways Hunley might grow. This is a rich marketing mix case that requires students to develop a qualitative and quantitative plan for Hunley's product line under two very different growth options. The discussion can illuminate numerous marketing issues that an instructor might want to emphasize, including: brand extension, product and company market position, positioning statements, market segmentation, introductory marketing programs, new product launches, channel conflict, sales force management of a strategic shift, among others. This case is suitable for an introductory marketing course for undergraduate or MBA students. It can also be used in a section on positioning and increasing consumers' willingness-to-pay within a strategy course. Further, the challenges facing Hunley are relevant to many courses in executive education.
Hunley, Inc. manufactures rods for the niche sport of fly fishing. It specializes in freshwater rods that are perceived as "middle-market" products, targeted at "avid" fly fishers, In the face of declining revenue and a decreasing price per unit sold, the company's president is considering several growth options, including introducing a rod made from state-of-the-art materials (moving up-market) and expanding distribution into Walmart (down-market). Hunley's president must decide whether either option is feasible and if so, what kind of marketing plan is necessary for each to succeed. If neither option is chosen, he must determine what other ways Hunley might grow. This is a rich marketing mix case that requires students to develop a qualitative and quantitative plan for Hunley's product line under two very different growth options. The discussion can illuminate numerous marketing issues that an instructor might want to emphasize, including: brand extension, product and company market position, positioning statements, market segmentation, introductory marketing programs, new product launches, channel conflict, sales force management of a strategic shift, among others. This case is suitable for an introductory marketing course for undergraduate or MBA students. It can also be used in a section on positioning and increasing consumers' willingness-to-pay within a strategy course. Further, the challenges facing Hunley are relevant to many courses in executive education.
Montes Calçados is a well-known, "fast-fashion" Brazilian manufacturer of casual, but fashionable women's shoes for women aged 18-35 in major cities worldwide. To boost its declining revenues, MC must evaluate two growth options: whether to expand distribution online (at the risk of diluting the brand, by attracting older customers) and whether to increase the frequency of introducing new styles (at the risk of more fashion "misses"). Altogether, Montes Calçados may need to rethink the "Brazilian" positioning of its brand. The case is suitable for strategy and general management courses because it raises questions about a company's basic direction and business definition, and the management of complex issues associated with doing business worldwide. Because this case suggests the overlap of key marketing decisions with strategic questions, it can also be used in both required and elective marketing courses, especially for topics on distribution of consumer products and brand management. This case can be used in advanced undergraduate, MBA, or executive-level courses.
Magellan Boatworks is a midsize manufacturer of customized, power "cruising yachts." In the face of economic and political uncertainty in late 2016, Magellan's VP of sales and marketing, Walt Robinson, wonders whether he should request a budget increase for 2017. Important questions abound. Can Robinson's team increase sales even with a lower budget? Should the company reallocate its advertising and promotion budget? Should Robinson consider changing Magellan's marketing message and narrowing its target market? Why are Magellan's two best salespeople so significantly outperforming their colleagues? This case can be used in an introductory or executive course that covers integrated marketing communications (IMC), including sales. It is also suitable for elective courses in advertising strategy and sales force management. The case's focus on a luxury item that symbolizes success for many individuals should generate lively discussion.
This case is about Katherine Schuler, soon to become senior vice president of marketing at a fast-growing retail organization, Boxes & Bins (B&B). Part of Schuler's success has been due to her "fit" into a company with clear values and principles. In particular, B&B always put its employees first, and eschewed debt in order to grow only as the company could afford it. Several years ago, the founders sold most of their stock to a private-equity firm, the Weichel Group, which leveraged B&B heavily in order to accelerate the opening of more stores and to pay off the founders. Even after a recent IPO, the Weichel Group remained a major shareholder, and it urged B&B to hire two senior managers from large discount retailers to run operations and merchandising. Schuler's move into her new role could lead to her becoming B&B's president if she is successful. Schuler understands that B&B needs to grow, and wants to help it do so, but is uncertain about the plans for how that growth will occur. She wants B&B to acknowledge its key success factors to date because she believes that doing so will help it move to a new future. Yet she knows that changing B&B may be impossible-therefore, leaving might be her best option.
The Clique Pens Writing Implements division of U.S. Home is a manufacturer of a full line of pens, pencils, markers, and art supplies. Despite solid sales, division president Elise Ferguson has seen gross margins drop from 42% in 2010 to just over 36% in 2012 as a result of various discounts, allowances, and other off-invoice deals. She is now considering a move away from these discounts in favor of Market Development Funds (MDF), which would be used explicitly to promote retail merchandising activity for Clique and in theory provide the company with more control of trade promotional dollars to influence consumer behavior. Along the way, Ferguson must consider the structure and problems of various trade promotions and the conflicting needs of her sales and marketing departments. This case introduces basic elements of promotion and pricing policy and the challenges of marketing through major mass retailers.
The marketing and operations managers for Olympic Rent-A-Car meet to decide how to respond to changes in the loyalty rewards program at the market-leading competitor. The competitor's program gives awards based on dollars spent instead of days rented and eliminates blackout dates. Olympic expects the program to capture more of the valuable business traveler segment, which rents cars more frequently and generally pays higher premiums than the leisure traveler segment. At the meeting, the team reviews the financial performance of the firm and the firm's reward program, called Olympic Medalist. They consider whether they can afford to match the competitor's loyalty program terms as they have done in the past and also consider how the competitor's actions will affect the entire car rental industry. Ultimately, they must respond with a truly distinctive strategy. Students must perform a quantitative analysis of each possible response and consider the value of customers in loyalty programs.
The soup division at Brannigan Foods contributes over 40% of the firm's revenue. The general manager is concerned that the soup industry is declining and that the soup division shows declining profits and market share, especially among the important baby boomer segment. Hoping to reverse these trends, he asks four key managers to review a consultant's analysis of the soup industry and recommend a turnaround strategy. Each manager presents a different plan, from investing in core market segments and products to acquiring new product lines and customers. Students must perform a quantitative analysis of each proposal while considering the feasibility and risks associated with each option before making a final recommendation.