The president director of Dharmala Manulife, a large, successful Canadian-Indonesian joint venture life insurance company, faced a significant disruption to operations due to social unrest in Jakarta. Moreover, the Asian financial crisis had resulted in a massive devaluation of the rupiah, in terms of the U.S. dollar. Thus, premiums on U.S.-dollar denominated policies had become prohibitively expensive almost overnight. Policy surrenders, redemptions, and lapses were occurring at an alarming rate. This erosion of the company's client base also meant that sales agents (who worked solely on commissions) were not only losing clients, but were also facing a tremendous challenge in writing new policies in light of the economic, political, and social chaos. Given the external situation, the president director and his senior management team were forced to develop effective strategic marketing decisions. The case asks students to consider the marketing plan for the launch of a new product designed to address the market realities and how to manage the commissioned salesforce in light of the disruption to operations.
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER -Regional Asia-Pacific Case Writing Competition</strong></p><br>Looks.com is an Asian e-commerce site for brand name cosmetics, fragrances, skin care products and fashions. It has been well received among investors; the site had a viable business strategy and a solid first-mover advantage. The founder and managing director is ready to launch looks.com within weeks to capitalize on the upcoming Christmas shopping rush and the intense dot.com fever that caught Hong Kong in late 1999. The biggest challenge the company now faces is persuading brand name cosmetic manufacturers to list their products for sale on the site. Look.com's managing director and buyer are finding that manufacturers' concerns about cannibalizing their existing sales channels and antagonizing their licensed distributors are dampening their enthusiasm for dealing with looks.com. The challenge to the company is to develop strategies to convince manufacturers that using this alternative distribution channel can increase their revenue and the profile of their brands in Asia, with little impact on their current distribution network. This case has universal appeal, given that similar concerns have developed around the world as the Internet becomes an increasingly viable alternative distribution channel.
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER -Regional Asia-Pacific Case Writing Competition</strong></p><br>Grey China is a subsidiary of Grey Advertising, based in New York. Established in 1917, Grey Advertising offered a variety of marketing and corporate services through its 377 branches in 88 countries, which employed 10,000 people. The case provides an overview of how an advertising agency functions, as well as illustrating timely advertising industry issues such as specialization and globalization. The CEO of Grey China must decide whether or not to launch an interactive services department to capitalize on the potential for a first mover advantage. Many marketing managers in Hong Kong and China were unaware of how interactive marketing could be integrated into their marketing communications programs. Grey China had the daunting task of building primary market demand for interactive marketing communications.
Northwest was a major producer of newsprint, with pulpmills in the Pacific Northwest and Canada, from which they supplied various North American markets. The assistant controller was reviewing which mill supplied which market, in an attempt to find some opportunities for cost savings, and planned to develop and use a model to investigate both the immediate newsprint allocation problem and also some longer-term strategic issues. (A Microsoft Excel model is available for use with this case, product 7A98E035.) The supplement, Northwest Newsprint, Inc. (B), product # 9B09E003 addresses the ability of price changes to mitigate supply chain issues and improve supply chain profitability.
Kandy Chan, the director of operations at the Hong Kong Convention and Exhibition Centre is trying to decide whether or not to purchase 2000 new chairs. As he looks ahead, Chan anticipates an occasional shortage of chairs during major events. He has a choice between purchasing the needed chairs outright, or signing an agreement to rent the chairs for the coming peak season with an option to rent them as well during the following season.
Anthony Ng, the general manager of Kowloon Development Co. Ltd., has been approached by a real-estate agent proposing a new development project for possible investment by Kowloon Development. Although the project is attractive, there are a number of associated uncertainties that complicate Ng's decision about whether or not to recommend investment. He has only a few days to review the proposal and make a decision before the next board meeting.
The assistant brand manager for Procter & Gamble's Scope brand in Canada has been working since May with the brand manager to refine the brand's market position. They are concerned about whether they have chosen the correct target for the brand, and what their fall advertising for Scope should communicate. A focus group session has been planned for the next two weeks. They are eagerly awaiting the opportunity to uncover key consumer insights but want to ensure that they are asking the right questions. They have to make specific decisions regarding the fall advertising campaign no later than the beginning of August and want to ensure that the new advertisements are as successful as possible. This case can be used in a second year advertising or research methods elective, or as part of the advertising module in a first year course.
Exotic Adventures Inc. operates expedition-style voyages in various locations around the globe, including the Amazon River basin. In early 1998, Exotic Adventures began marketing a low-water season voyage up the Amazon to take place in October. By August, 99 passengers had booked passage with Exotic Adventures. However, in early September the company began receiving messages from their agents in Brazil advising that water levels were unusually low. The company must decide whether to cancel the voyage now (and refund payments received) or to continue it with the risk of subsequent higher costs.
The export director for Cerveceria Cuauhtemoc Moctezuma, of Monterrey, Mexico, must develop a sophisticated marketing strategy in order to earn a permanent place for the brewery's SOL brand in the UK brewing market, considered to be one of the world's most dynamic and competitive beer markets. Specifically, he must decide how to position the brand; what brand characteristics, if any, should be modified; what new distribution channels, if any, should be pursued; and finally, what type of advertising and promotional campaign is necessary.
George Patrick, president of Airtech Limited, is faced with both severe competition and under-utilization of the company's manufacturing capacity. He is considering a number of options, including a complete departure from the manufacturing business.
The chief executive of Trusthouse Forte, was preparing to meet with corporate shareholders to discuss both a proposed new corporate image and a new company name. Two key issues needed to be resolved. First, should the Forte brand name be extended across all of the company's businesses or more selectively reserved for particular operations? Second, the development of a strong communications plan would be critical to the success of the proposed changes.
This note provides a review of three different models of consumers' advertising response processes, and discusses the implications of these models for advertisers. It also describes the advertising agency's model or grid and its role in marketing communication planning. The model is known as AIDA, standing for getting Attention, developing Interest, building Desire, and finally getting Action.
The manager and owner of The Pool Doctor, is in the process of formulating a marketing strategy for the coming year. Many strategic issues remain unresolved, such as how to advertise, whether he needs to change suppliers, and deciding upon a basic product mix to achieve maximum profits and long-term success.
Janet Wells, product manager for POST Children's Cereals, must decide how to allocate her marketing budget to in-pack premiums, trade promotions, and advertising. Her decision is complicated by recent increases in competitive activity.
Tetra Pak Inc.'s Environmental Steering Committee members review the company's communications campaign during the previous fall and must decide what changes Tetra Pak should make to make the campaign even more effective. Tetra Pak is a wholly-owned subsidiary of Swiss-based Tetra Pak Rausing SA. For a long time, the parent company had felt no need to actively pursue the possibility of recycling its drink boxes, mainly due to the fact that incineration for energy recovery was a widely accepted method of solid waste disposal in Europe. However, operating in Canada, Tetra Pak felt strong pressures to respond to environmental concerns over incineration and landfill site capacity problems.
The brand manager for Sunlight Powder laundry detergent, must decide how to respond to the introduction by Loblaws' of a new green laundry detergent product. He is considering several alternatives, and must carefully consider the pros and cons associated with each approach, as well as the economic impact on his company's sales and the effect of increased consumer awareness of environmental issues. This case may be used to introduce positioning decisions, in a product policy module, or in a marketing strategy module.