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Dunkin' Donuts is exploring various methods of increasing distribution. Possibilities involving new outlets include area development contracts, subfranchising, regional rollout strategies, and an increase in company owned stores. Possibilities focusing on existing shops include sales of branded products through convenience stores and satellite (non-producing) retail outlets. The case provides consumer data and detailed information about regional differences, franchise relations, and shop operations. Raises issues relating to both strategy formulation and implementation in a franchise system and requires the student to analyze the interaction between the structure and management of a franchise system, and how they both relate to the market.

In 1988, Optical Distortion, Inc. was ready to reintroduce its only product, contact lenses for chickens. Tests had shown that the lenses significantly reduced bird aggression and feed costs, leading to potentially huge cost savings for egg producers. In the years since the (A) case, margins for egg producers had become so small that if a large producer could sustain a significant cost advantage, many small producers could be forced out of business. In this case the company's only salesperson must decide whether to concentrate on closing a sale to an aggressive major producer who may demand all the company's capacity for the next year, or to spend time spreading the word to smaller more vulnerable producers. In doing so, he faces the difficulty of convincing the farmers that cost savings which appear "too good to be true" are, in fact, real. The case is short and can be used in conjunction with Optical Distortion, Inc. (A). In addition to the ethical issues, it also raises issues of sales strategy and the diffusion of innovations, and can be used to examine negotiation strategies.

Pizza Hut, Inc. is a franchisor of eat-in pizza restaurants. It has decided to enter the home delivery market and is in the process of implementing that strategy. The case traces the development of the home delivery concept at Pizza Hut and the interaction between the franchisor and its powerful franchisees as it attempts to achieve system-wide rollout. Focuses on the management of significant change in a franchise system and on the strategy decision regarding home delivery.

Reviews several key areas in the marketing manager's legal environment and is organized around the marketing mix variables. In the pricing section it covers price fixing, resale price maintenance, discriminatory pricing, and predatory pricing. In the distribution section it covers tying; exclusive dealing; and territory, location, and customer restrictions. In the promotion section it covers unfair acts and practices and deceptive acts and practices. In the product section it covers patents, trademarks, copyrights, warranties, product liability, and product safety regulation. This note is not a complete survey of the law on the subjects covered, but is rather an introduction to the complexities of the marketing manager's legal environment.