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Runhua: An Auto Dealer’s Sales Channel Dilemma
In 2022, Runhua Group was a well-known automobile dealer in China with a large market share in the traditional fuel vehicle market. The recent surge of new energy (i.e., plug-in electric) vehicles was having a strong impact on the company’s main business. The high number of new automobile companies entering this promising market was threatening the dealership model, the traditional sales and distribution channel that dominated the market. Runhua Group had always held a long-term vision and a cautious attitude. However, it had to make a decision on how to respond to the subversive changes in the automotive industry in a timely manner. What should be the company’s strategy for the new energy vehicle business? How should it select which new energy brands to partner with? -
A Step-by-Step Guide to Real-Time Pricing
In today's fast-paced world of digital retailing, the ability to revise prices swiftly and on a large scale has emerged as a decisive differentiator for companies. Many retailers now track competitors' prices via systems that scrape rivals' websites and use this information as an input to set their own prices manually or automatically. A common strategy is to charge X dollars or X percent less than a target competitor. However, retailers that use such simple heuristics miss significant opportunities to fine-tune pricing. Some companies are now applying machine-learning models to guide their pricing decisions, but even these retailers tend to take an overly limited approach. They try to match or undercut competitors' prices without taking into account factors such as whether rivals are out of stock or how consumers make their purchasing decisions. In this article, the authors present a step-by-step process for dynamic pricing that focuses on building computer models that consider not just competitor pricing but also product availability and customer behavior to recommend optimal prices in real time. -
Just Kitchen Taiwan: The Growth Conundrum
In April 2022, the founder and chief executive officer of Just Kitchen Holdings Corporation (Just Kitchen)—a Canada-based and publicly listed operator of ghost kitchens in Taiwan—was sitting with part of his team to discuss the marketing plans for the year. The company reported revenues of CA$4.6 million for the second quarter of 2022. In the second quarter 2022, total revenues increased by 127 per cent and retail order volume grew by 151 per cent. That year, the number of ghost kitchen locations had increased from 14 to 28. The founder wanted to double the company’s revenue by 2023. To achieve this goal, the management team faced several questions: Should Just Kitchen focus more on local brands in Taiwan or invest in international brand licensing and partnerships? How could the company leverage the omni-channel opportunity to better engage with its consumers and not depend on the delivery partners? What strategies should Just Kitchen consider to attract and retain customers, grow its sales revenues, and increase profitability? -
Vishwa Foundation: Propagating the Ancient Wisdom of Holistic Well-Being
The international Vishwa Foundation (Vishwa), based in India, was started four decades ago to promote holistic healing and wellness based on the tenets of swaasthya and ancient Ayurvedic texts. Vishwa had revived the Vedic tradition of Agnihotra, or fire-offering, a daily ritual performed at the auspicious hours of dawn and dusk. The organization offered spiritual products that used Agnihotra ash as a key ingredient, offering a unique and traditional approach to personal care and wellness, and had some success. In July 2022, the president of Vishwa wanted to expand the product market by promoting Vishwa’s products as natural, eco-friendly, and holistic solutions for consumers' health and wellness needs. He was aware that Vishwa faced several challenges, including a weak distribution network and a lack of branding compared to its competitors, and he needed to explore alternatives for the company’s growth and implement the changes soon. -
Air India: The Image Damage of “Pee-Gate”
This case describes unruly passenger behaviour on National Aviation Company of India Ltd.’s New York-Delhi flight. It elaborates on the airline crew’s failure to effectively address an elderly woman’s predicament and assuage her concerns after an inebriated passenger urinated on her. As a result, Air India was exposed to social media ridicule, public scorn, loss of customer loyalty and trust, and a severe dent in its brand image. With the plummeting net loss in 2022 and reputation damage threatening to come in the way of its goal of becoming the airline of choice in passenger service and comfort, what can Air India do to rebuild its brand image, revive its past glory, prevent or manage such instances, and reclaim customer loyalty and trust? -
Mixue: The Race to Stay Ahead in the Asian Tea Industry
Founded in 2006, Mi Xue Bing Cheng (Mixue) had become widely popular in the Chinese market by June 2021. Mixue achieved very high levels of growth by using a low-price high-volume strategy, a clever marketing campaign, and an unconventional geographic expansion strategy that emphasized secondary markets. However, the domestic market was becoming too saturated. Seeing Mixue gain recognition, new competitors started imitating its business model and developing a fiercely competitive market. Mixue’s chief executive officer, Hongfu Zhang, was wondering how to sustain the company’s high growth rate. Should Mixue continue following its original strategy or adopt a new and different approach that includes international expansion? -
Design and Evaluation of Targeted Interventions
Targeted interventions serve as a pivotal tool in business strategy, streamlining decisions for enhanced efficiency and effectiveness. This note delves into two central facets of such interventions: first, the design of potent decision guidelines, or targeting policies, through assessing individual reactions via A/B testing; and second, the strategic use of A/B tests to predict policy outcomes prior to their full-scale implementation. Complementing these insights, the note presents real-world data illustrations and essential coding guidance, furnishing readers with the hands-on skills needed to adeptly create and evaluate targeting policies. -
EatSure: Bringing Surety From the Clouds
<p align="justify">EatSure was the direct-to-customer platform of Rebel Foods, an internet-based restaurant. EatSure was positioned as a digital food court compared to online food aggregators and other companies in the food-service industry. Sagar Kochhar, chief executive officer of EatSure, had a meeting with his executive team to discuss the company’s goal of reaching fifty million EatSure app users. EatSure had recently reached more than seven million downloads. The team met to analyze EatSure’s positioning with respect to other food-delivery competitors following recent market research and the creation of a perceptual map. Kochhar wanted to understand the company’s existing market position and decide on a future course of action to meet this growth goal. -
Jungle Bay Dominica: How Can An Eco-Resort Amplify Its Marketing?
The concept of Jungle Bay Dominica (Jungle Bay) was created by Samuel Raphael on the island of Dominica in 1997 and first opened for business in 2005. Raphael’s philosophy was that he could profitably operate a luxury hotel with minimal disturbance to the surrounding natural environment that functioned as a tool to further the economic growth and social welfare of the local population. To its clientele, Jungle Bay offered a variety of experiences in a tropical setting, such as breathtaking views, spa treatments, lush gardens and orchards, adventure tours, and fresh organic food. For the Jungle Bay team, Raphael provided opportunities for learning new skills and a steady income, and he gave motivated individuals an opportunity to grow. However, a series of natural disasters and the COVID-19 pandemic had resulted in Jungle Bay struggling to achieve occupancy rates above 35 per cent. Raphael had to determine the best way to expand Jungle Bay’s marketing efforts, increase occupancy rates, and increase revenue. -
EatSure: Bringing Surety From the Clouds
EatSure was the direct-to-customer platform of Rebel Foods, an internet-based restaurant. EatSure was positioned as a digital food court compared to online food aggregators and other companies in the food-service industry. Sagar Kochhar, chief executive officer of EatSure, had a meeting with his executive team to discuss the company's goal of reaching fifty million EatSure app users. EatSure had recently reached more than seven million downloads. The team met to analyze EatSure's positioning with respect to other food-delivery competitors following recent market research and the creation of a perceptual map. Kochhar wanted to understand the company's existing market position and decide on a future course of action to meet this growth goal. -
CSL: Rebranding “The Biggest Company No One’s Ever Heard Of"
In October 2021, the head of digital communications and branding at the Australian biopharmaceutical conglomerate CSL Limited (CSL), was tasked with a strategic rebranding exercise. By August 2022, he and other stakeholders felt a sense of pride and satisfaction at how quickly the rebranding initiatives had been completed. CSL felt that it had achieved the desired brand associations and met its targeted brand net promoter score performance. Looking forward, the company’s executives needed to outline an implementation plan to ensure CSL’s brand positioning—its key differentiator—to ensure that CSL outpaced respected competitors and that the CSL brand connected with the company’s product brands at each customer touchpoint—all while maintaining trust and attracting the best researchers possible. -
OZBLU: Last Mile Opportunity Scan for Fresh Produce
Based in South Africa, United Exports was a leading producer of blueberry varieties. In April 2022, the company faced an issue of competitive positioning and entry in a crowded US market. The chief executive officer of United Exports, Americas, was preparing for a strategic planning meeting where the goal was to develop actions to grow the company and expand distribution in the United States. United Exports’ OZblu brand had simultaneously attempted to create year-round blueberry supplies and to shorten its supply chains by selling Florida-grown blueberries in the United States. The CEO knew he had to rethink supply chains in a post-pandemic world and in light of shifting consumer buyer behaviour realities. He had to find a way to best enter the US fruit produce e-commerce market while aligning with United Exports’ values and selling proposition. The CEO needed to examine and carefully consider e-commerce models, including subscription, rapid delivery, and the online grocery landscape. -
BYD Cars in India: Can They Make a Dent?
In October 2022, Chinese car company BYD Auto Co., Ltd. (BYD) announced its entry into the Indian automobile market with the Atto 3, an electric sports utility vehicle (e-SUV). Despite facing challenges in India's emerging electric vehicle (EV) market and the close scrutiny on investments from China, BYD aimed to sell 15,000 units to be assembled at its existing Chennai plant, to establish manufacturing facilities, and to open fifty-three dealerships by the end of 2023. BYD's push into India was part of its larger expansion strategy to diversify into new markets globally to include Japan, Thailand, the United States, and Brazil. However, the company needed to determine its target segment, who its competitors were, and what macroeconomic challenges it would face so that it could establish a position within India's competitive car market. The existing Chennai plant saved BYD from having to obtain new approvals from the government, but the company still had to navigate the challenges of entering a new market with a nascent EV infrastructure. -
Sanzo: Bridging Cultures through Asian-Inspired Flavoured Sparkling Water
After four successful years on the market, the founder and chief executive officer of Sanzo Brands Inc. (Sanzo) was looking for ways to continue the momentum and growth of his company. Sanzo was an Asian-inspired flavoured sparkling-water beverage company with an innovative approach to marketing and branding. Rather than promoting its sparkling water through traditional media channels, Sanzo relied on a digital-brand story approach and adopted social-media marketing tools in a mass-marketing environment. Alessandro Roco knew this was the right product at the right time, but his greatest concern was how to maintain the social-media buzz and continue to build the community around the brand. He wondered how Sanzo should manage social media to keep the community engaged and the brand story relevant. -
PBG BioPharma: Cannabis Consumer Health Market Entry Preparation
The cannabis industry in Canada has experienced unprecedented growth since the Cannabis Act came into effect in 2018. It is widely expected that cannabidiol (CBD) will be classified as a food and natural health ingredient in Canada, the European Union, and other jurisdictions in the near future, which will open up a significant market. In 2023, Dr. Jacqueline Shan, the CEO of PBG BioPharma, made a long-term strategic decision to enter the cannabis consumer health market by launching a series of CBD consumer health products once the cannabis regulations in Canada are relaxed. In preparing to launch its own consumer product line, PBG BioPharma is developing its marketing strategy and analyzing potential challenges in managing its supply chain. -
FARM Rio: Bringing a Brazilian Fashion Brand to the World
FARM Rio, a twenty-six year old Brazilian fashion brand, had recently put down roots in the U.S. The brand, known for its bold, colorful, nature-inspired tropical prints, was testing the waters in Europe to assess if and how the brand should further expand globally. Balancing two different geographic markets was proving to be more challenging than expected and the team had needed to make changes to the brand's name and positioning, price points, and its product quality, styles, and fits to accommodate the needs of retailers and consumers in the U.S. Before deciding on a European investment strategy, the team was assessing the return-on-investment of the U.S. launch and determining if the company had achieved a sufficient level of product-market fit so that they could adjust if necessary. They were also working to optimize the distribution channel mix among its own branded stores, e-commerce, and wholesale partnerships. With the U.S. still requiring significant investment to fuel an aggressive growth path, the company would have to decide where to place its bets: in its initial market of Brazil where it was a market leader, in the U.S., which was showing strong initial promise, or in the untested waters of Europe, home to the world's fashion capitals. As they evaluated global expansion possibilities, the team had to coordinate with their colleagues who were busy managing the brand back at home at the company's headquarters in Rio de Janeiro. -
Victoria’s Secret: Fall of the Angels
US-based lingerie retailer Victoria’s Secret Stores Brand Management, LLC (Victoria’s Secret) was started by a man who had been embarrassed to shop for lingerie for his wife and aimed to make the lingerie purchasing experience more comfortable for men. In 2020, after struggling to adapt to changing consumer habits and tastes and suffering from decreasing quality in its products and increasing competition from online retailers, the company faced a final blow from the effects of the COVID-19 pandemic. Revenue streams were drying up, stores were closing, and the company was struggling with a tarnished image resulting from its links to the Jeffrey Epstein scandal. Its parent company’s top management team and board of directors now faced a critical decision: Should they attempt to repair Victoria’s Secret’s brand image and fight to strengthen sales, sell the Victoria’s Secret brand, or spin off the brand? -
Design and Evaluation of Targeted Interventions, Spreadsheet Supplement
Spreadsheet supplement for case 524034. -
magicpin:Big is not Bad. But Local is Better
magicpin was a multisided platform that enabled users to discover online and offline offers from merchants and brands through the magicpin app, and to earn rewards and cashback. magicpin facilitated an increase in the sales of partner merchants and brands by diverting consumer traffic, and was paid by the merchants and brands if performance guarantees on an increase in sales were achieved. In its "mission to make hyperlocal magical," magicpin introduced a "phygital" service that enabled users to browse online offers from local offline merchants, check the availability of the merchandise in nearby stores, pay using magicpoints, and pick up the product from the store or have it delivered home. As the company sought to attract users that valued the shopping experience rather than deals, Anshoo Sharma, co-founder and Chief Executive Officer (CEO) of magicpin, was considering releasing a "manifesto" that explained the distinctiveness of magicpin's offering and reinforced its mission. -
Revier Brand Group, LLC: Will its "sustainability and consistency" brand positioning pay off?
The CEO of Revier Cattle Company, Tom Revier, had been an innovator in sustainable farming and humane livestock practices for over two decades. He and his partner Paul Hillen are considering whether they should launch a branded differentiated product in the market, and if so, how they should position this offering. The product has definite advantages in taste, texture and consistency due to the consistent farming techniques. Although taste may be important for some segments of the market, there may be an opportunity to showcase the sustainability characteristics of the company's livestock care and handling and its humane and environmentally friendly aspects. The case delves into the end-to-end value chain to understand the opportunities and challenges in taking a brand to market.