This case features an entrepreneur striving to rapidly grow a successful chain of hair salons that serve women with afro hair. After doubling from 13 to 26 salons across Brazil in 2014, the founders' expansion plan called for 120 Beleza Natural salons and R$1 billion in sales by 2018. CEO and cofounder Leila Velez is considering various fundamental marketing strategies to catalyze growth: Should Beleza launch a new mass-media campaign, increase promotional discounts, expand its target market to serve men, broaden its service offerings, streamline processes to reduce wait times, expand distribution channels, or franchise? Students assume the role of Velez and are asked to recommend which growth strategy would be their top priority. In doing so, they are required to evaluate how these strategies pertain to the company's business model and value proposition. They are also challenged to consider what a brand is and what makes a strong service brand in order to verify if their strategies are consistent with Beleza's brand. The teaching note outlines a framework for developing or evaluating a business model as well as developing strategies for managing growth. The case is accompanied by a series of video interviews with Velez that support case preparation, in-class discussion, and key learning points.
This case puts students in the shoes of Mexican entrepreneur Rodolfo Corcuera of the tech startup Aliada, an online platform that matches maids with customers in Mexico City. With backing from one of Mexico City's newest venture capital firms, Corcuera's business now needs to scale, and he is considering how best to position his offering to those on whom his business model depends--maids and customers. To tackle this, students will learn about basic concepts from psychology that can inform marketers. More specifically, they will learn how basic human needs (nurturance, security) fuel self-regulatory goals (promotion and prevention goals, respectively), which in turn impact how people approach their consumption goals. Students will analyze Aliada's current Facebook ads, watch videos of some of Aliada's current maids and customers to assess whether they seem more motivated by promotion or prevention goals, and recommend optimal messaging for Facebook ads and subway banners in order for Corcuera to be most appealing to these two target audiences who may have different motivations.
It is February 2011 and Brian France, CEO of NASCAR (the National Association for Stock Car Auto Racing), is facing a crisis. In the last five years, attendance at weekend NASCAR races has fallen 22 percent and television viewership has declined 30 percent. Key marketing sponsors have recently left the sport. At the same time, the U.S. economy has only begun to recover from an economic recession that has had an adverse impact on the sport of auto racing as a whole. Some leaders within NASCAR counseled Brian that these trends in attendance, viewership, and sponsorship stemmed from the recession and that NASCAR should continue with business as usual. But Brian sensed that the industry needed fundamental change and that he, as CEO of NASCAR, was the one that must lead this change. With Brian at the helm, NASCAR embarked on an unprecedented amount of qualitative and quantitative research to assess the strengths and weaknesses of the entire industry. At the center of this research was the NASCAR consumer. Highly engaged, enthusiastic consumers were at the heart of an industry business model that had been successful for decades. But in 2011, marketing within all of NASCAR needed to transform, as it was clear that consumers were disengaging with the sport. As the consumer research results unfold, Brian and leaders within NASCAR must make tough choices and set priorities. The case focuses on four key areas in which decisions need to be made by NASCAR leadership: digital marketing and social media, targeting the next-generation NASCAR consumer, enhancing the star power of NASCAR drivers, and enhancing the consumer experience at NASCAR events. Focus group videos offer students a customer-centric deep-dive into these challenges. At its heart, this is a case about great leadership and transforming marketing throughout an entire industry. A wrap-up video from CEO Brian France summarizes how NASCAR executives tackled the difficult questions posed in the case.
In 2011, Sherry Hunt was a vice president and chief underwriter at CitiMortgage headquarters in the United States. For years she had been witnessing fraud, as the company bought billions of dollars in mortgage loans from external lenders that did not meet Citi credit policy and sold them to government-sponsored enterprises (GSEs). This resulted in Citi selling to GSEs such as Fannie Mae and Freddie Mac pools of loans that were considerably defective and thus likely to default. Citi had also approved hundreds of millions of dollars' worth of defective mortgage files for U.S. Federal Housing Administration insurance. After reporting the mortgage defects in regular reports, notifying and working closely with her direct supervisor (who was subsequently asked to leave Citi after alerting the chairman of the board to these issues) to stop the purchase of defective loans, leaving anonymous tips on the FBI's and the Department of Housing and Urban Development's websites, and receiving threats from two of her superiors who demanded that she change the results of her quality control unit's reports, the shy and conflict-avoidant Hunt had to decide who she should tell about the fraud, and how. The case gives students the opportunity to recommend how Hunt should proceed based on their analysis of the stakeholders involved. To aid instructors, the case includes Kellogg-produced videos of Hunt-the only on-camera interviews she has ever given-explaining what happened after she reported the fraud to Citi HR and, later, the U.S. Department of Justice. Within the case, students are also briefly exposed to legislation and bodies pertinent to whistle-blowing in the United States, including the Dodd-Frank Act, the Sarbanes-Oxley Act, and the SEC Office of the Whistleblower.