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Dabur India Ltd. - Globalization
Dabur, an Indian consumer package goods company, had established a strong brand equity in India by offering, for decades, a vast portfolio of over-the-counter products. In seeking international expansion in 1987, it first took the export route. It also followed the customer, targeting the Indian diaspora in the Middle East, Africa and the United States, already familiar with the brand. By 2006, Dabur had set up five manufacturing facilities outside India. In June 2007, Dabur had to make, in countries such as Nigeria for example, some critical choices. It had to choose between sticking to the diaspora, a market it understood best, and targeting the mainstream population. It had to choose its growth options between categories like personal care, in which it had built up competencies, and categories such as oral care and home care, which were the new engines of growth in its international markets but in which the company had no track record, either on the home front or overseas. The case study helps students deal with issues of growth and consolidation in a global market from the perspective of the company's chief executive officer and the head of its international operations. -
Suzlon Energy Ltd.
An Indian wind energy company with global ambitions of being among the top three in its business worldwide, Suzlon Energy Ltd. (Suzlon) manufactures and markets turbines, which harness wind to product electricity. Several of its customers are going global and increasingly expect global service (including pricing) consistent across geographies. Suzlon could consider the rapidly increasing business practice of global account management (GAM) to meet these needs. However, it would be a new trend in the wind energy industry and Suzlon would have to pioneer it. That presents several challenges, including persuading top management to approve a pilot exercise with a key customer, and managing incentives and morale within the organization and across country borders. -
Shoppers Stop: Targeting the Young
The case deals with how Shoppers Stop, a home-grown Indian retailer of branded apparel and accessories closely identified with the adult segment of customers for a decade and a half since inception, looked at the growing segment of the youth population. Against the backdrop of an aging demographic, particularly among countries in North America and Europe, India had an advantage of a largely young population. Thirty-five per cent of Indian were under 15 years of age and 70 per cent under 35 years of age - a profile likely to remain so for the next two decades. Topics of discussion include: Is there a risk for an adult company in targeting the young? Is there a risk in not targeting the young? Is there a business opportunity in the youth segment? What should Shoppers Stop do if it were to seize the opportunity? What is the addressable segment? Is a change in strategy required now or will tweaking the current strategy do? An interview with the Shoppers Stop chief executive officer is available on DVD. -
Nuway Software
The founder and president of Nuway Software (Nuway) must determine the pricing strategy for their new internally-developed mobile software product, Nulogic. Nuway develops custom mobile software applications that provide great competitive advantage to each of their customers; no two software modules it develops are similar. Nuway is now ready to market Nulogic as a stand-alone product and has identified three unique customer segments: Corporate in-house developers, competitors and independent software developers. The company has historically followed a cost-plus pricing model and has maintained positive profit margins. The software industry as a whole is moving towards value-based pricing, where cost is based on perceived value to the customer. The president does not favour value-based pricing and views it as price-gouging; however, he is aware that cost-plus pricing has limitations with regards to cost accuracy. By considering the entire software industry, Nuway's capabilities and his own preferences, the president must determine how to price the new software. -
Security Breach at TJX
The chief security officer of TJX Companies Inc. (TJX) faces a dilemma on his first day on the job. The company has discovered in December 2006, a computer intrusion dating back to 2005. There is an ongoing investigation, involving the Federal Bureau of Investigation (FBI) into the attacks. The company is also in the middle of several class action law suits over losses suffered by financial institutions due to breaches of customer privacy. The chief security officer has to focus on plugging the loopholes in the company's information technology (IT)security, in the short term, and taking steps to ensure in the long term that the attack does not recur. He also had to get the management of TJX to start looking at IT security not as a technology issue but as a business issue. -
Nano Tata-Logy: The People's Car
The case illustrates the opportunities, challenges and trade-offs involved in the design, prototyping, and marketing of the Nano - the People's Car - by Tata Motors Ltd (TML), a Tata Group Company. The case is set nine months after the January 2008 unveiling of the Nano concept car in New Delhi, India. The company's managing director faces multiple dilemmas in rolling the Nano off the production lines at the manufacturing plant in Singur, including growing local and global competition in the emerging low-cost, low-emission market, rising manufacturing costs, and stakeholder pressures. The decision reviews critical developments in global automotive markets from the point of view of TML's and Tata Group's deeply ingrained values for sustainable economic development and Indian-grown competitive advantage. It plots the promise of a rampant market growth and the emergence of an India-based small car cluster against international outcry about the proliferation of urban transportation, congestion, and pollution in emerging markets (particularly India and China). Students are asked whether Nano is a disruptive or sustainable innovation for the company and the group, and respectively for the Indian and global automotive industry. Smaller and cleaner than its well-established rival in the west, the Toyota Prius, the Nano promises reliable, safe transportation to India's emergent middle class as a fraction of the cost; the Nano is also 1.5-4 times cheaper than its Indian based rivals. However, production bottlenecks threaten Nano's launch in the last quarter of 2008. Speculating that first mover advantage may sway customer perception and breed loyalty, several competitors are quickly setting up India-based manufacturing of competing models. Market projections estimate over one million adoptions, mostly by prior two-wheeler motorists, and limited switches from higher emission options for fuel and emission conscious consumers. The case addresses the issue of carbon neutrality, and more broadly the role of emerging market companies in addressing global climate change issues. -
Dr. Reddy's Laboratories (A)
Dr. Reddy's Laboratories (Dr. Reddy's), a large pharmaceutical company in India, is trying to acquire the fourth largest generics manufacturer in Germany. Dr. Reddy's quoted $570 million in a competitive bidding situation. The company's chief negotiator is getting ready to close the deal if selected. Students will examine the issues for the chief negotiator, such as: is the price right, is the fit strategic, will the acquisition add value, how can the synergies be fully exploited and how should management proceed with the integration. The (A) case is positioned just before the acquisition and hints at the possible risks. The supplement case, Dr. Reddy's Laboratories (B), product # 9B08M065, is positioned two years post-acquisition and examines a major risk which, as it unfolded, brought the viability of the business model into question. -
Dr. Reddy's Laboratories (B)
This supplement to Dr. Reddy's Laboratories (A), product # 9B08M064, looks at the two years post-acquisition and examines a major risk which, as it unfolded, brought the viability of the business model into question. -
Personal Shoppers at Sears: The Elf Initiative
The senior vice-president of Corporate Store Sales, Sears Canada, was reviewing a new retailing initiative scheduled to launch within a month in all full-line Sears department stores across Canada. For the holiday season, Sears would offer the services of an elf, the equivalent of a personal shopper, to its customers. Although personal shoppers were common in upscale department stores, especially in the United States, this concept had not been tried in Sears stores. Taylor wondered how customers would respond to this novel concept in Canadian retailing. -
Air Miles Canada: Rebranding the Air Miles Rewards Program
Air Miles, the largest third party loyalty program in Canada, has more than nine million subscribers. Competition in the loyalty card market is heating up with the entry of Aeroplan and myriad proprietary loyalty programs launched by retailers and other brands, and Air Miles seeks to tighten its relationship with customers. Paradoxically, for a data-driven company focused on influencing consumers individually, Air Miles opts to develop and launch a mass advertising campaign to reconnect with consumers, and just as importantly, to re-energize internally. -
Asian Paints Ltd. International Architecture
The president of Asian Paints Ltd., India's largest paint manufacturer, was wondering how he could improve the way the company's International Business division was managing its team of 120 global managers. The company had operations throughout Asia in various locations such as China, Singapore and Thailand; throughout Africa in countries such as Oman, Egypt and Mauritius; and in the Americas in Jamaica. The team of global management was critical to the success of the company's globalization endeavour, which was expected to gather momentum once the ongoing consolidation was complete. The president must decide how to structure the management of this global team. -
Air Deccan (B): From Creating Change to Changing Creatively
Supplement to Air Deccan (A): Changing the Face of Indian Aviation, product #9B07A001. By November 2005 Air Deccan, India's first low cost airline, had been in business for two years. During this time, the airline had grown rapidly, adding both planes and passengers at breakneck speed. Using low fares as its central strength, it had caused huge, unconventional changes in the Indian domestic airline industry. Not satisfied, however, the founder and chief executive officer wondered how to adapt to the future and sustain Air Deccan's tremendous initial success. -
Clearwater Seafoods
Clearwater Seafoods (Clearwater) is a seafood company located on the east coast of Canada. It is an income trust with operations around the world. As a result of the increasing value of the Canadian dollar relative to other currencies around the world, Clearwater has recently ceased paying its distributions. The case considers the decision faced by the chief financial officer to determine the strategy the firm should take to enable it to reinstate its distributions. This involves the choice between different financial and operational means to hedge the foreign exchange risk which brought the firm into its current situation. -
Mahindra & Mahindra Ltd. - Farm Equipment Sector: Acquisition of Jiangling Tractor Company
Farm Equipment Services (FES), the tractor manufacturing division of Mahindra & Mahindra Ltd. (M&M), is considering entering the Chinese tractor industry through a joint venture with Jiangling Tractor Company (JTC), a state-owned automotive enterprise. M&M had seeded the Chinese tractor market with exports and had concluded that the most efficient and prudent way to serve the Chinese tractor market was through a joint venture with a local partner. JTC had good brand recognition and strong position in the small tractor market. However, due to the lack of interest from the parent company, Jiangling Motor Company Group, JTC was facing severe operational challenges: was over staffed, had high overhead, owed significant amounts to suppliers and dealers were fleeing the company. M&M saw an opportunity to work with a management team they were comfortable with and to leverage JTC's potential to grow in China and to export tractors as well as components. The challenge was to determine how management should proceed to restructure and integrate the joint ventures assets. -
MMI Product Placement, Inc.
The president of a national placement agency is preparing to make a final pitch to sign Greyhound Canada as a client. Greyhound wants to reposition its brand as a mainstream travel option, particularly for suburban commuters, and needs cost-effective ways to get its message to consumers. The company views product placement as a viable tool for building brand awareness, but worries about losing control over its brand image. Even more serious are concerns about the absence of reliable metrics to assess the overall effectiveness of product placement. The case covers fundamentals of product placement, particularly with respect to strengths and weaknesses, and provides an excellent basis for discussing its value as part of an overall marketing communications strategy. -
Air Deccan (A): Changing the Face of Indian Aviation
The founder and chief executive officer of Air Deccan, India's first low-cost airline, ponders the imminent launch of the airline. His mind goes back to his passion and vision of empowering every Indian to fly, a bold dream in a country of one billion people who travelled predominantly by buses and trains. Would Air Deccan fly? -
3M Canada: Industrial Business Division
Senior management at 3M Canada's Industrial Business Division (IBD), which manufactures abrasive and adhesive products, faces a dilemma. In the light of a 2006 directive from corporate headquarters, which calls for top line growth, IBD has a goal of essentially tripling its annual rate of sales gain from its current level of three to four per cent to 10 per cent within two years. In IBD's markets, 3M as a product-driven company with strong research and development focus, has historically concentrated on original equipment manufacturers and specialty distributors, but a new channel to market has emerged. Several national distributors of items used in general repair and maintenance are growing at a rapid pace. If 3M Canada wants to participate in the growth, it must seriously reconsider how it goes to market, particularly in sales and logistics. Dealing with this situation demands analysis of the requirements of the new channel, and an assessment of fit with IBD's capabilities and strengths. Significant changes will be necessary for IBD if it is to gain and sustain business in the emergent segment. -
Biocon Ltd.: Building a Biotech Powerhouse
The founder chairman and managing director wants to make Biocon, Ltd. one of the top 10 biotech firms by 2015. The company has dealt in low-risk enzymes and generic drugs for many years. In order for the company to grow, the chairman believes that Biocon must enter the riskier business of drug discovery and development. Without making large investments into new capabilities, the company cannot become a top 10 biotech firm. -
The Home Depot Canada: Renovating Strategy
The president of The Home Depot Canada (THDC), a subsidiary of U.S.-based The Home Depot Inc., had recently articulated her own vision for THDC: to become Canada's top retailer. To achieve this goal, THDC would have to continue to evolve to meet the changing needs of its customer base. The do-it-yourself segment, which THDC had nurtured, was giving way to the do-it-for-me segment. Attracting the female customer, towards whom The Home Depot Inc. had only recently turned its attention, was critical to future growth. The big-box format was approaching saturation in Canada's urban centers. The company would have to look for growth from secondary, inner city markets, requiring stores with less square footage. Did THDC need a new retailing strategy? The president wondered whether the strategy, which had been tried and tested, should be continued, tweaked or overhauled. -
The Home Depot Canada: EcoOptions
In December 2005, The Home Depot Canada (THDC) rolls out its EcoOptions product line. The market for environment-friendly products has been changing in terms of vendor interest, consumer demand and competitive dynamics. THDC has been pushing that change with EcoOptions, which started off as a pilot project in March 2004. The project was driven by a larger vision of making EcoOptions the leading environmental brand in the global home-improvement market. Translated into measurable goals, it meant that 10 per cent of THDC's assortment of about 50,000 SKUs would be designated as EcoOptions by 2010. This case introduces many of the critical issues in strategic merchandising and assortment decisions, with a focus on the management of a major shift in the retailer's product assortment.