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This note provides a resource to aid in understanding brand equity: its creation, maintenance, measurement, and value. Suitable for use in introductory courses in marketing at the undergraduate and MBA levels, this note presents an overview of brand perspectives including those of Millward Brown, Young & Rubicam, David Aaker, and Bill Moran, and Interbrand.

This case describes the history of the Red Bull brand and how the company stimulated and harnessed word-of-mouth to build a new product category (functional energy drinks) and brand franchise. The case concludes by asking the reader to consider how Red Bull should react to competitive challenges in the United States. The case was written to foster discussion of nontraditional brand-building strategies and the growing globalization of brands and products targeted toward younger consumers.

In the drive to create the wired automobile, General Motors developed the OnStar system, a subscription-based, wireless dashboard communication service that provides numerous safety and convenience features including emergency assistance, remote door unlocking, and hotel reservations. GM was faced with several key questions regarding its market-leading telematics system. Should they syndicate OnStar, or was it of more value to the company as an exclusive feature? Should the OnStar division be spun-off? Will telematics devices become standard for all vehicles, and if so, how would this affect decision-making regarding OnStar?

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.

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.

Spreadsheet supplement for UV2916 and UV2918.

The case provides the background for a hands-on data-mining exercise. The purpose of the analysis is to identify high value customers of an online retailer in order to give them VIP treatment. The exercise is described in "Identifying the VIPs at eTOTS" (UV2918).

This case contains the instructions for a hands-on data-mining exercise. The purpose of the exercise is to identify high value customers of an online retailer in order to give them VIP treatment. The exercise uses purchase data for 60,000 customers. The background is described in "Customer Care at eTots.com" (UV2916).

Spreadsheet supplement for UV2916 and UV2918.

The purpose of this note is to prepare the student for a series of exercises in making marketing economics calculations. These calculations are not replacements for spreadsheets or more detailed economic calculations such as net present value or return on investment. They are "back of the envelope" estimates that can easily be communicated to others to buttress arguments about what a company should or should not do in a decision situation.

The economics of the Internet are often tied to determining the value of a communications network. However, there are several different kinds of communications networks, each with their own method of valuation. These networks are named by the laws that describe their valuation: Sarnoff's, Metcalfe's, and Reed's. This note describes each network type and its method of valuation.

Since the late 1980s, Progressive Casualty Insurance Company has maintained a strong position in the nonstandard auto-insurance market (auto insurance for high-risk drivers). Progressive's goals in the 1990s are to expand its insurance coverage to include standard and preferred customers (drivers with clean driving records and no accidents). The company never advertised before 1994; as a result, consumer awareness has been very low. Progressive faces strong competition in a varied insurance industry. Companies like Allstate, the nation's largest underwriter of nonstandard auto insurance, and State Farm, with 21.1% total market share, present a challenge to Progressive as the company strives to make its products available to all drivers. The case focuses on building the company's brand through advertising and enhancing product differentiation through technology.

In a relatively short period, DuPont innovates stain-proof carpeting, filling its nylon-fiber capacity and increasing profits significantly. MBA and undergraduate students consider how DuPont should approach the fact that competitors quickly introduce their own enhanced stain-resistant products. What actions should it take to keep its hard-won leadership of the carpet-fiber industry. STAINMASTER is the certification given by DuPont to carpets made with the company's own premium nylon and treated with a chemical to repel liquid stains and dry soil. The carpets must also meet minimum construction standards in terms of face weights, yarn twist, and other quality considerations. The introduction of STAINMASTER is accompanied by heavy advertising and trade promotion to establish the brand name among consumers and retailers.

Five carefully constructed problems illustrate the concepts of second-market discounting, price skimming, limit pricing, random discounting, premium pricing, and bundling.

What does an up-and-coming beverage company do when demand begins to exceed production? Students must wrestle with the options of cutting back on flavors or product lines and allocating demand to some outlets and geographic areas or coming up with other creative solutions to deal with the problem. Snapple also had to confront strong competitors (Coke, Pepsi, Nestea, Lipton) that were threatening to take share from Snapple in the very category it had created. The system of contract production and independent distributors further complicates Snapple's ability to implement short- and long-term solutions that would balance push-and-pull marketing. A teaching note is available to registered faculty.

This case describes the introduction and marketing of an extended-life fluorescent bulb to replace incandescent bulbs. With the new bulb selling at retail for $15 to $20, successful marketing of the new bulb will require a major change in buying habits of both consumers and the trade.

This case depicts the history of an unusual brand in the "super premium" segment of the vodka market. The top-of-line positioning is supported with creative advertising, narrow distribution, point-of-purchase advertising, and expensive advertising production. Absolut has used very expensive inserts as advertisements in print vehicles during the Christmas season. The last inserts described in the case cost approximately $1 each to manufacture and distribute via the media vehicle (The New Yorker). The case asks students to decide whether such expensive advertising should be continued and, if so, how. The societal effects of advertising alcoholic beverages and the implications of pursuing such exclusive positioning strategies may also be explored.

Coordination between advertising and price strategies may lead to higher profits. Analyses of data from 227 businesses show the price-advertising relationship. The results show that companies with higher advertising budgets charge premium prices; consumers are willing to pay more for a perceived "high quality" product; and the association between advertising expenditures and price is strongest in the last stage of the product cycle. The price-advertising consistency principle is important for attaining a substantial return on investment.