In 2017, the German grocery chain Lidl Stiftung & Co. KG (Lidl) opened its first 20 U.S. stores in the southern states of Virginia, North Carolina, and South Carolina. Key target segments of Lidl were budget-conscious customers, middle-class families with children, and elderly customers on a fixed income. Lidl offered lower prices than its competitors and quickly gained a strong advantage in the marketplace. Despite high early consumer demand, however, Lidl struggled to hit the correct target market for each of its different locations in terms of tastes and demographics. With plans for 100 U.S.-based locations by the summer of 2018, Lidl had set its sights high. What could Lidl do to meet its U.S. market goals and expand into the future?
In 2012, in the small mountain town of Boone, North Carolina, an entrepreneur launched a premier coffee shop called Local Lion. Boone was both a home to a state university and a popular tourist destination and Local Lion provided a unique coffee experience. This experience included responsibly grown coffee, homemade doughnuts, and locally made artwork and jewellery; however, customers were heading to the recently opened outlet of the global coffee chain Starbucks. The Local Lions owner wondered what he could do to preserve his business and retain his current customer loyalty. What options should he explore?
In July 2015, the largest automobile company in India, Maruti Suzuki India Limited (MSIL), took the initiative to improve its market penetration in a particular category of the passenger car market—the premium segment. Although MSIL was the current market leader in India’s entry-level car segment, the company had not been successful in establishing itself as a dominant player in the premium segment—a segment that had seen intense competition since 2008. By launching Nexa, a new nationwide premium dealership, through its existing dealer network, MSIL was attempting to create a differentiated car buying experience. MSIL planned for all-new premium models to be launched exclusively from Nexa outlets. Would the launch of Nexa help MSIL attain its desired objective of becoming a major player in India’s premium car market?