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Spreadsheet supplement for case 596-015.

The managing director of Disney Consumer Products for Europe and the Middle East is reviewing recent market research in Lebanon regarding the sales potential of Disney licensed products and assessing the pros and cons of several distribution options.

Lexus executives and dealers in the United States are debating how to respond to the U.S. Trade Representative's announcement of 100% tariffs on 13 models of Japanese luxury imported cars.

The MasterCard vice president for global promotions and other MasterCard executives are appraising the results of MasterCard's worldwide sponsorship of the 1994 World Cup soccer championship. They must decide whether to commit to sponsor the 1998 championship to be held in France.

In the last 10 years, products have proliferated in every category of consumer goods and services, and the deluge shows few signs of letting up. Most companies are pursuing product expansion strategies--in particular, line extensions--full steam ahead. But more and more evidence is indicating the pitfalls of such aggressive tactics. The strategic role of each product becomes muddled when a line is oversegmented. Also, a company that extends its line risks undermining brand loyalty. Some companies, such as Procter & Gamble, Chrysler, and a leading U.S. snack foods company, have discovered that a carefully focused and well-managed line can increase profits and sales volume. John A. Quelch and David Kenny describe how marketing managers can sharpen their product-line strategies by improving cost accounting, allocating resources to popular products, researching consumer behavior, coordinating marketing efforts, working with channel partners, and fostering a climate in which product-line deletions are not only accepted but also encouraged.

Astra executives meet to discuss how to counteract the appearance of Korean-made counterfeit athletic shoes in Europe, Asia, and Latin America.

Astra executives meet to discuss their options with a Venezuelan company that, for seven years, manufactured and marketed athletic shoes under the Astra name without authorization from Astra.

Reebok International Ltd. is preparing to launch its first global advertising campaign for "Planet Reebok" in three European countries--France, Germany, and the United Kingdom. Planet Reebok was recently launched in the United States during the 1993 Superbowl. The company conducted market research on the Planet Reebok concept in the three countries.

Supplements Planet Reebok (A).

The international procurement manager of an off-price office supply retail chain has to recommend which of several bids to accept for the right to supply computer diskettes to OfficePro's new French subsidiary.

Supplements OfficePro (A).

Supplements OfficePro (A).

The CEO of Bausch & Lomb is contemplating replacing an international division with three regional divisions to sustain the company's growth, especially in international markets, and to add value to customers.

Loctite Corp., dissatisfied with the sales growth achieved by its independent distributor in Hong Kong, is considering whether to find a new distributor or acquire a controlling interest in a wholly owned subsidiary covering Hong Kong and possibly other markets. Loctite has a varied portfolio of international distribution arrangements and experience on which to base this decision.

In February 1993, Curran Dandurand, senior vice president of Mary Kay Cosmetics Inc.'s global marketing group, was reflecting on the company's international operations. Mary Kay Cosmetics Inc. products had been sold outside the United States for over 15 years, but by 1992, international sales represented only 11% of the $1 billion total. In contrast, one of Mary Kay Cosmetics' U.S. competitors, Avon Products Inc., derived over 55% of its $3.6 billion sales (at wholesale prices) from international markets in 1992.

Spreadsheet supplement for case 594023.

Describes organization changes announced by Nestle's chariman in 1991 and updates the description of Nestle's marketing organization.

After many years of R&D, Goodyear has developed the Aquatred, an innovative new tire. However, the tire industry has matured and evolved, raising questions concerning the Aquatred's ability to gain support from Goodyear's independent tire dealers. Students must use information on channel evolution and consumer behavior to make two decisions: whether to launch the Aquatred and whether to expand Goodyear's distribution network. Also explores issues involved in managing a complex distribution structure during a time of rapid change.

Harlequin Enterprises, the world's leading publisher of series romances, has been particularly successful in Poland. The case explores some of the challenges/opportunities of doing business in Eastern Europe and the marketing mix elements necessary for success.

Considers a Pakistani company's decision to conduct a joint venture with a foreign multinational. In 1987, Milkpak Ltd. had successfully developed a market for sterilized milk and wanted to produce other value-added food products. The company was evaluating the best means for increasing its success in the Pakistani market and conducted negotiations with alternative joint venture partners.