This simple model of marketing strategy can provide keys to creating a sustainable competitive advantage. Suitable for MBA and executive formats, this technical note demonstrates that individual marketing strategy concepts are interconnected, which renders the strategic process vulnerable to the political machinations of executives. Evolving customer needs and competitors' proactive efforts to steal market share require a dynamic marketing strategy.
Lilly ICOS is preparing to launch Cialis, a prescription drug that treats erectile dysfunction, and executives must decide how to position Cialis against market leader Viagra and recent entrant Levitra.
McDonald's executives announce plans to launch a dollar menu in the fall of 2002. Students must evaluate the potential impact of this menu on restaurant revenues, and the sales of McDonald's Value Meals.
This case is a condensed version of "Philip Morris U.S.A. and Marlboro Friday (A)". In July 1993, Philip Morris executives met to consider second-quarter data on U.S. tobacco sales. Three months earlier, the company had announced a 40-cent-per-pack promotion for Marlboro cigarettes, the number-one-selling cigarette in the world. On the day of the announcement, April 4, Philip Morris stock fell $14.75, to $49.375, while the Dow Jones Industrial Average fell 68.63 points. On June 4, the company announced an extension of the promotion through August 8. After eight months of consecutive share declines, Marlboro's share had rebounded by three points. Philip Morris executives now faced several important decisions: Should the Marlboro promotion be extended beyond August 8? Should the promotion be replaced with a permanent cut in wholesale prices? Should the prices of other Philip Morris premium brands be lowered? Finally, should the prices of the company's discount brands be altered in any way?
The case describes Procter & Gamble's adoption of value pricing, Wal-Mart's introduction of premium store brands, and the evolution of Wal-Mart's relations with its major vendors. In early 1994, Kimberly-Clark agreed to manufacture private-label training pants for Wal-Mart. Students must decide how Procter & Gamble should respond to Wal-Mart's decision to sell private-label diapers manufactured by Kimberly-Clark.
In 1999, Procter & Gamble (P&G) witnessed its first share increase against rival Kimberly-Clark (K-C) in the U.S. disposable diaper sector in five years. However, Sam's Club de-listed P&G's Pampers from most of its stores that August, limiting its diaper offerings to K-C's Huggies and its own private label brand White Cloud, introduced that same year. By mid-2000, P&G's stock had lost more than half its value, and the nature of the company's "special relationship" with Wal-Mart was being called into question.This case is a supplement to UV4013.
As Monsanto launches Roundup Ready® Soybeans in 1995, its executives must choose a target segment and decide how to position the new product and how to support that position through appropriate tactical decisions regarding price, distribution, and communication. The genetically altered soybeans will not die when sprayed with Monsanto's Roundup, the world's leading herbicide.
In 1995 McDonald's was the largest restaurant chain in the United States with domestic sales of almost $15.9 billion. McDonald's was also the country's fourth-largest advertiser, spending $490 million on measured media in 1995. On May 9, 1996, the company introduced the Arch Deluxe, a quarter-pound hamburger that was the first in a planned series of sandwiches targested to adults. By the end of May, McDonald's had sold or given away 100 million Arch Deluxe burgers. Despite this success, in the second quarter of 1996 some store sales at McDonald's restaurants declined slightly from the same quarter in the previous year. Thus McDonald's faced several key decisions. Should the Arch Deluxe burger be modified? What changes, if any, shoud be made in the marketing campaign? Should McDonald's proceed with plans to introduce fish and chicken line extensions?
Students evaluate the consistency and liability of Amazon.com founder Jeff Bezos's marketing strategy. Bezos founded Amazon.com as an Internet retailer of books, and by 1999, the site also sold CDs, videos, used books, and gifts and operated an auction service.
Executives at this Internet-based company evaluate the results of a pricing survey to decide what changes to make, if any, to the annual fee charged for the company's junk mail elimination services. Founded in 1996, Adios Junk Mail provides comprehensive elimination of unwanted direct-marketing solicitations. Clients select what types of direct marketing they want stopped. Once a month, the company generates a list of customers and their elimination preferences. It then mails the list to direct-mail companies, telemarketers, and database companies, requesting that the customers' names be suppressed.
Students evaluate McDonald's new Arch Deluxe hamburger, targeted to adults, including the launch program and the underlying marketing strategy in light of the company's skills, resources, and brand position.
In early 1994, Kimberly-Clark agreed to manufacture private-label training pants for Wal-Mart under the "Atta-Boy!" and "Atta-Girl!" labels. To place this decision in perspective, the case describes Procter & Gamble's battle with Kimberly-Clark for market share in the disposable-diaper market. The case also describes Procter & Gamble's adoption of value pricing, as well as Wal-Mart's introduction of premium store brands. Students must use this information to answer three questions: (1) How should Procter & Gamble respond to the introduction of Huggies Supreme with Velcro fasteners? (2) What should Procter & Gamble do with Luvs disposable diapers, which had been repositioned against private labels with a 16% price cut in May 1993? (3) How should Procter & Gamble respond to Wal-Mart's decision to sell private-label diapers manufactured by Kimberly-Clark?
Supplement to case UV2850. This case supplements the A case (UVA-M-0452) by describing events in the disposable-diaper market from June 1994 to October 1994.