Kathy Ayers, Vice President of Marketing and Communications for Land and Nature (L&N) Jerky Company, needs to make a recommendation about L&N's 2020 promotional spending. L&N's CEO, Tim Ryan, wants her to calculate different scenarios using historical data to determine which option to recommend. Specifically, Ryan wants Ayers to recommend one of the three options: reduce the promotion budget by 30%, increase spending on consumer promotions by $200,000, or increase spending on trade promotions by $200,000. Ryan's goal is to achieve an operating profit of at least 7% of L&N's sales in 2020. To make a recommendation, Ayers must first evaluate the effectiveness of past consumer and trade promotions and then determine how to allocate promotional spending to achieve Ryan's operating profit goal. The case can be used to discuss positioning and integrated marketing communications. It demonstrates how return-on-marketing-investment (ROMI) varies with changes in gross profit. Students will need to evaluate strategic information as well as calculate quantitative information. The case is recommended for upper-level undergraduate students or first-year MBA students studying marketing management. It can also be used in a course on consumer marketing, promotions management, or integrated marketing communications.
The Caesan Cheese Cooperative is considering introducing a new high-quality, high-margin artisan whiskey cheddar cheese. Deidra Kelly, vice president of marketing and product development at Caesan, must recommend to the Board of Directors whether to launch the product using Jameson® whiskey as a branded ingredient or using a generically branded whiskey. Use of the branded ingredient would involve a licensing agreement with a leading spirits and wine distributor, Pernod Ricard USA (PR-U). Evaluation of the options requires an assessment of the product-company fit, product-market fit, marketing program, licensing agreement, breakeven sales volume, and achievement of the targeted sales goal. The case focuses on evaluating new product opportunities, specifically regarding product-company fit and product-market fit. In addition, the case allows students to discuss the power of branding and entering strategic partnerships to drive revenue. Students must also use their quantitative skills, such as conducting breakeven analyses and understanding the impact of licensing costs on gross profit margins. The case can be used to discuss product strategy, positioning, branding, and partnerships. It is recommended for upper-level undergraduate students or MBA students in courses focused on marketing strategy, product development and management, or branding.
Shelby Diaz, country manager for Cepuros Foods International - Malaysia (CFI-M), must decide a growth strategy for the expansion of CFI-M's line of salsas, particularly regarding whom to target and how to allocate marketing investments. CFI-M could expand aggressively by mass marketing to the general population. A more conservative approach would use targeted communications and promotions. Diaz needs to build an argument for a specific growth strategy and recommend which marketing investments CFI-M should pursue. The case can be used to discuss strategy, positioning, and marketing communications, which are relevant to considering alternative strategies for growth. The possibilities for growth include market penetration, product development, and/or market development. The case touches on the potential benefits and risks of each option given the competitive landscape, customer perceptions, and demand determinants. Students should find the product and distribution easy to understand, but the international market context provides a unique opportunity to apply core marketing principles. The case is recommended for upper-level undergraduate students or first-year MBA students studying marketing strategy. It can also be used in a course on international marketing.
Wiikano Orchards, a family-owned business, faces declining demand in a commodity industry. The president is considering rebranding Wiikano's apple juice, increasing its prices and promotions. If this proposal succeeds, wholesalers and retailers would be more likely to distribute and pay more for Wiikano's juice. The Wiikano case focuses on challenges related to product differentiation and can be used to discuss branding, pricing, and marketing communications. It also addresses issues that small- and medium-sized business owners face, by employing a product and distribution system that are easy to understand. The case is recommended for upper-level undergraduate students or first-year MBA students. It may also be used as an exam case.
A maker of paints and product coatings is considering introducing a new high-performance, environmentally-friendly hardwood coating called Lena. To proceed with the next phase of development, Pintura's VP of new product development must present a convincing analysis of the product's feasibility-along with a proposed marketing program. The VP must consider the relationship of the proposed product to the rest of the Industrial Finishes Group's product line, as well as how it would contribute to corporate and divisional objectives. The Pintura case can be used in a variety of classes, including an introductory marketing course, a capstone course, or a business-to-business (B2B) marketing course. The primary focus is on product-policy decisions. The most likely use for the case is in a module on product-line planning. It also can be used as a case on marketing planning.