In November 2023, top of mind for Kristen Siemen, chief sustainability officer at General Motors (GM), was how to increase consumer adoption of electric vehicles (EVs). After committing to be carbon neutral by 2040, the automotive giant has its work cut out for it: while EV purchases increased to 14% in 2022, consumer concerns, such as range anxiety and cost sensitivity, are limiting adoption. Kristen Siemen must consider how the marketing, sustainability, and communication teams should continue to work collaboratively to address this slowdown in market penetration and how to optimally position GM to reach its goal of carbon neutrality.
Allbirds, Inc., the sustainable footwear company whose sneakers were rocked by public figures from Barack Obama to Leonardo DiCaprio, was a promising startup in 2016. But by end of 2022, its stock price had plummeted to ~4% of its previous high. Born out of co-founder Tim Brown's frustration for the lack of comfortable, minimalist sneakers on the market, Allbirds aimed to address both ease of wear and sustainability as a "purpose-native company built upon a system that leverages nature in a responsible way." It was met with an almost immediate cult following in Silicon Valley, perceived as both luxurious and responsible. However, the company struggled to realize its anticipated growth, and now, CEO Joey Zwillinger must explore how to turnaround the brand.
To augment the growth of a restaurant's business, its owner began selling coupons on a New York City deals website. However, the owner wondered whether selling these steeply discounted coupons was a sound business decision. In this case, students are presented with a spreadsheet with 34 months of sales data and are asked to develop a regression model of sales as a function of key variables. This case is accompanied by a Solutions note that details the steps in developing a model of sales as a function of seasonality, a time trend, and current and past promotional activity.
Growing an exclusive brand by moving down market can be tricky: It risks tarnishing the brand among core customers. New research shows that under certain conditions, however, downward extensions can actually intensify a brand's prestige. It all depends on how the noncore consumers are framed--whether they are presented as part of the core community ("brand immigrants"), a situation that tends to diminish the brand's image, or whether they are positioned as "brand tourists"--consumers who admire the brand without seeking to be part of the core community. The research findings suggest several strategies for companies who want to extend a brand without alienating core consumers.