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  • Cole and Parker: Socks that Start Businesses

    The co-founders of a company that markets brightly coloured, high-quality and boldly designed men's socks had just heard from the producers of a popular Canadian reality television show, Dragons' Den. They had been chosen to pitch their business idea to the show's venture capitalists in hopes of receiving investment funds. Since they were at the cusp of their business development plans, with an innovative business model and product design, the co-founders still had some key marketing decisions to make before their on-air pitch to the "Dragons" in a month. The partners' concept of the company was innovative: for every pair of socks sold, 20 per cent of their sales would be donated to Kiva, an organization that facilitated microfinance lending. The sale of each pair of socks would aid entrepreneurs around the world who were starting their own businesses.
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  • Making stickK Stick: The Business of Behavioral Economics

    stickK.com, a website that uses behavioral economics to help users achieve their goals, must choose between a direct-to-consumer or business-to-business model. The case includes a discussion of how principles of behavioral economics can be used to influence behavior, and how an understanding of behavioral economics can inform managerial decisions about product adoption and diffusion.
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  • The Montreal Stars

    In September 2012, the general manager of the Montreal Stars, a women's hockey team, faces several challenges. One of six in the Canadian Women's Hockey League, a not-for-profit organization that aspires to be the professional league for women's hockey in North America, the team has won the league championship three times and its players have won a number of awards, including Olympic gold medals. Yet, average attendance per game has been sparse. The first issue is how to increase the awareness and the fan base of the team in Montreal. Secondly, the league allows a team to keep only $25,000 of whatever funds it raises; any amount above that limit must be submitted to the league to support it and other teams less successful at fundraising. Given this, it is difficult to raise funds from and maintain support among donors for the local team. Finally, not only the players but the administrative staff, including the general manager, are volunteers. How can the league be persuaded to relax the constraints on fundraising so that the team can develop the organizational capacity to pay its players and staff? In sum, the general manager faces both external and internal marketing problems.
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  • The Montreal Stars

    In September 2012, the general manager of the Montreal Stars, a women's hockey team, faces several challenges. One of six in the Canadian Women’s Hockey League, a not-for-profit organization that aspires to be the professional league for women's hockey in North America, the team has won the league championship three times and its players have won a number of awards, including Olympic gold medals. Yet, average attendance per game has been sparse. The first issue is how to increase the awareness and the fan base of the team in Montreal. Secondly, the league allows a team to keep only $25,000 of whatever funds it raises; any amount above that limit must be submitted to the league to support it and other teams less successful at fundraising. Given this, it is difficult to raise funds from and maintain support among donors for the local team. Finally, not only the players but the administrative staff, including the general manager, are volunteers. How can the league be persuaded to relax the constraints on fundraising so that the team can develop the organizational capacity to pay its players and staff? In sum, the general manager faces both external and internal marketing problems.
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  • Note on Mobile HealthCare

    Delivering health care to the global population was a challenge. Health care costs accounted for ten percent of world GDP by 2013. In the U.S., health care costs were expected to top $3.1 trillion in 2014. New technologies, shortages of trained personnel and lengthening life expectancies were accelerating the growth of health care costs. Physicians often failed to engage patients in preventative care, which many believed would help combat the rising costs of treating chronic conditions. Diabetes and hypertension, in particular, afflicted many developed nations and were a growing threat in the developing world. Mobile health (mHealth) used networked devices to distribute or collect medical information from patients and/or medical personnel. Given its low cost and broad reach, many wondered if and how mHealth could help solve the global health care crisis.
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  • Alliance Grain Traders Inc.: Moving Up the Value Chain (A)

    A stock market analyst was reviewing one of his fund’s holdings, Alliance Grain Traders Inc. (AGT). One of the world’s largest traders of pulse crops, AGT was in the midst of entering a new line of business and expanding its non-core operations. On one hand, AGT would have been able to use its dominance in pulse trading as an advantage in expanding up the value chain. On the other hand, it was moving into sectors that were already mature and highly competitive. The key question for the analyst was whether he should continue to hold AGT stock given its stated objectives.<br><br>The case set is split into an “A” case, where AGT’s history and the food value chain are laid out. The “B” case, 9B14A043, provides an update two and a half years later when it became evident that AGT had committed to expanding beyond the trading and distribution of pulses.
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  • Alliance Grain Traders Inc.: Moving Up the Value Chain (B)

    Supplement to 9B14A042.
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  • Himalaya Drug Company: Repositioning an Herbal Soap

    In an initiative to develop its herbal soap offering and create a repositioning strategy for its soap products, one of the front-runners in the Indian skincare market explored the perception of the brand image, using survey data to compare its own image with those of two of its strongest competitors. The challenge for this brand was to reposition itself and build its equity after taking into consideration the perceptual results of the study and the existing positioning of soap brands.
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  • Abercrombie & Fitch: Is It Unethical To Be Exclusive?

    The CEO of clothing manufacturer and retailer Abercrombie and Fitch defends his decision that the company will not offer plus sizes for women, although extra large sizes are available for men, because average- to large-sized female consumers do not fit the company's target market. This insistence on a standard of female beauty as young, svelte and tall has enraged consumers who have criticized the company, and the CEO in particular, in both the traditional and social media for exacerbating problems of body image and gender stereotypes, especially among teens. Increasing sizes, however, presents not only logistical and manufacturing challenges but may lead to charges that the company is encouraging obesity and unhealthy lifestyles as happened when a competitor, H&M, introduced large-size models and mannequins in its stores. Abercrombie and Fitch's popularity with its target teen market depends on its promulgation of exclusivity, which in turn depends on its vision of what is "cool." Yet, in the face of mounting criticism and declining sales, does sticking to the segmentation strategy make sense?
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  • Kat Rose Inc. - Sponsoring All-Star Cricket: A Selling Dilemma

    Headquartered in Mississauga, Ontario, Kat Rose was founded in 2009 to produce small strategic business conferences and corporate hospitality events. After mixed success, it was presented with an opportunity in 2011 to organize a cricket match in Toronto. Although sports were not on its radar, the company decided to use the project as a base for expansion. It put in place an aggressive advertising plan, largely aimed at South Asian and West Indian communities in the city who were fans of the game, and contracted Universal Productions, an ethnic marketing agency, to procure sponsorships. However, with only 10 weeks to go before the International Cricket All-Star T20 Match was scheduled to kick off on May 12, 2012 at the Rogers Centre, Toronto, only $60,000 had been raised; $750,000 was needed to break even. Management had four choices: give Universal Productions more time, offer it a financial incentive to step up performance, switch to another agency with a proven track record in this field or increase its own in-house sales force to focus on countertrade barter agreements. Each option required different skills, knowledge, experience and risk. Given the severe time constraint, any change must be implemented immediately. What should Kat Rose do?
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  • United Airlines and Captain Denny Flanagan

    This case follows a day in the life of Captain Denny Flanagan. A United Airlines pilot for nearly a quarter of a century and a former naval aviator, Flanagan has created and championed a campaign to radically change the nature of air travel — putting good customer service at the heart of everything the airline does and reaching back, in some way, to the golden age of air travel. Examples of his service include ordering food for passengers of delayed flights and phoning the parents of unaccompanied minors to reassure them of their children’s safety.<br><br>The success he has achieved is significant for a company that has historically received very poor customer service ratings. It raises questions about whether such exceptional service is good or bad for the organization. How can Flanagan’s approach be replicated? Is it possible or even desirable to replicate it?<br><br>Captain Denny Flanagan will be retiring in June 2016. He has expressed a strong interest in, and desire to support the teaching of the case by attending classes where the case will be discussed, at minimal cost to the institution. More details are available in the teaching note.
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  • The Tate's Digital Transformation

    John Stack was the visionary Head of Digital Transformation at the Tate, a collection of four major art galleries in the UK, including Tate Modern, the most visited gallery devoted to modern and contemporary art in the world. Stack was the architect of the Tate's "fifth gallery," its online presence. Stack had guided the Tate through two digital strategy planning processes and his team had experienced much success in developing the Tate's fifth gallery into a virtual place filled with immersive and engaging content, activities, experiences, and communities. Looking to the future, Stack was working to execute a new digital strategy, one that included digital as a dimension of everything the Tate did, both physically and virtually. This effort was raising important questions about organizational structure, marketing strategy, product and service design, and return on investment. What would it take to be a truly digital organization where digital was the norm?
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  • The Park Hotels: Revitalizing an Iconic Indian Brand

    Priya Paul, chairperson of The Park Hotels, an award-winning portfolio of thirteen boutique hotels scattered across India, was in the midst of a brand revitalization program. Landor Associates, a leading brand consultancy had identified three areas of concern: the shrinking differentiation opportunity provided by the boutique hotel positioning, consumers' negative perceptions of The Park's properties, and a lack of consistency across the hotel properties in the brand portfolio. Competition was heating up and Paul had a goal to expand her hotel portfolio to twenty properties in the next ten years. Paul knew that she had to make some major changes to her brand, including changing her positioning, choosing a new logo, and selecting the right products and services that enhanced her revitalized brand. And, she had to decide where to site the new hotel properties to best compete against global behemoths, Starwood, Marriott, Hyatt and Intercontinental. How could she best revitalize her brand to stand out in a crowded marketplace, while preserving its rich heritage? Which changes would best propel The Park Hotels into the future?
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  • Sweet Leaf Bath Co.

    Sweet Leaf Bath Co. is a small, family-operated bath and body products company specializing in fairtrade, environmentally conscious products. The company progressed from initially selling its high-quality, unique products at craft shows and exhibitions to limited sales through local retailers. Through these sales channels, Sweet Leaf’s founding partners learned more about the bath and body industry and the international issues surrounding the sourcing of many raw ingredients used in their products. However, after a year of minimal sales growth, the partners realized that they needed to develop and implement a new marketing strategy that would enable them to grow the business. Out of the many options available to expand the company’s distribution plans and promotional efforts, its owners must select those opportunities that will offer maximum benefits on a limited budget.
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  • Tesla Motors: Burning Up the Road to Market Domination or Doom

    Ten years after its founding, California-based Tesla Motors is close to becoming one of the world’s premier luxury car manufacturers. Its innovative design — using carbon fibre and aluminum rather than steel to construct body and parts — and technology — lithium ion battery packs rather than gasoline for power and a simple powertrain to provide maximum acceleration — make its models treasured options for eco-friendly and tech-savvy consumers as well as wealthy professionals. Relying almost entirely on word-of-mouth promotion through social media, the company sells its cars through factory stores in upscale malls rather than through dealerships and has built service centres to provide free battery charging. However, just as it is expanding into Europe and Asia and is contemplating buying its own factory to secure its battery supply, three of its cars have burst into flames following collisions, although no one has been injured. In addition, analysts claim that the company has been covering up its lack of cash flow by using non-generally accepted accounting principles for reporting its revenue. The CEO knows that the company has tremendous potential but is struggling with public relations problems arising from the crashes and questions about its financial stability and return on investment to investors.
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  • M-PESA and Nick Hughes

    It was February 2009, and Nick Hughes, head of Global Payment Solutions at Vodafone, contemplated his notes as he waited to enter the company's Executive Meeting at its headquarters in Newbury, amid the Berkshire countryside outside London. M-PESA (M for mobile, Pesa meaning 'money' in Swahili), Vodafone's mobile money payments service- had grown exponentially the previous two years; far beyond he or anyone else had imagined. What had begun as a corporate social responsibility project was now a much heralded story of financial innovation, offering financial services to millions of 'unbanked' customers. Safaricom, Vodafone's Kenyan affiliate, planned to increase the range of services developing beyond payments into other financial products, while the M-Pesa service had been rolled out to Tanzania and Afghanistan, where it was gaining momentum. Vodafone had multiple options as to what to do next with M-PESA. They could further tap the three country markets in which they were currently offering the service, for example by creating new services or expanding their customer base within these markets. Or they could develop new markets, by launching the core M-PESA service in other countries. The success in Kenya suggested that further roll-outs were attractive but where? Vodafone's existing business footprint was expanding but was not extensive and focused mainly on Europe rather than in developing countries. Regulation was a stumbling block in some markets; India being one example where regulators had ruled that only licensed banks could issue 'electronic money'. Some Vodafone executives were suggesting that the services could be introduced in Europe, Vodafone's home region, where it had a direct customer base of over 100 million existing customers. This, though, would fundamentally change the nature of the service from one targeting the unbanked. Alternatively, as a non-core business stream, Vodafone could spin off the service.
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  • Litehouse Foods: The Glass Dilemma

    This case focuses on whether Litehouse Foods should switch its signature creamy salad dressings from glass to plastic packaging. The central figure in the case is Doug Hawkins Jr., the company's Senior Business Development Manager (Marketing lead). The company, which is one of three major players nationally in the refrigerated salad dressing market, has been selling its dressings in glass jars for 50 years, and these glass jars are considered an important element in how consumers think about the Litehouse brand. Two of Litehouse Foods' competitors have recently switched to plastic, however, and this has helped them achieve a significant price advantage over Litehouse at retail. Switching to plastic jars would save Litehouse $1.5 million/year and allow it to narrow the price advantage opened up by competitors. Doug must develop a recommendation to the company's executive committee that considers the cost savings potential of plastic against the value of the glass packaging to the brand. Complicating this decision are the environmental implications of a switch from glass to plastic, both real and perceived, as well as how a change at this time would mesh with the company's recently launched growth strategy.
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  • Southern Chair Company: No Time for Sitting Around!

    Prior to the turn of the century, North Carolina was the hub of prosperous furniture manufacturing. However, competition from global manufacturers, the rise of Internet retailers, and the turbulent U.S. economy created significant challenges and changes for the industry. Many U.S.-based firms exited the industry due to global competition and poor financial performance. Robert Drake, owner of North Carolina-based Southern Chair Company, recognized the need for a new Strategic Plan; a plan to guide his company both through and beyond the challenging times. He remained committed to the long-term health of his manufacturing firm and hoped that his company would not join the ranks of his former, now defunct, competitors. In this case, the reader steps into the shoes of Robert Drake to create a strategic plan for Southern Chair Company while considering trends in external environments, key components of the business, and Robert's personal goals for the company.
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  • What Unhappy Customers Want

    Since the 1970s, the authors have conducted six customer satisfaction surveys patterned after a baseline survey by the U.S. Office of Consumer Affairs. Their latest survey found that: •The explosion of online social networking and other communication tools has raised the stakes in the area of customer satisfaction. •The intensity of negative reactions seems to be increasing. •In addressing complaints, companies are failing in their efforts to create one-stop services with technology and people dedicated to resolving customer problems. So, what can companies do to improve the level of customer satisfaction? The authors identify five areas of focus. 1. Encourage unhappy customers to complain, but be prepared to resolve the complaints. Today'unhappy customers expect businesses to handle customer service flawlessly (even if it is outsourced to a third party). 2. Understand what results your investments in customer service will produce. Since the 1970s, companies have invested billions of dollars in upgraded corporate complaint-handling practices. Only 20% of recent complainants were "completely satisfied"with the results of their complaint (compared to 23% in 1976). 3. Recognize that technology has limits -and that some customers want to interact directly with a person. Only 6% of today's complainants consider the Internet their primary channel for complaining. The authors say that online communication channels might be utilized more effectively to steer customers to live complaint handlers rather than pursuing totally automated solutions. 4. Be aware that customers may be even more influenced by positive online word of mouth than by negative word of mouth. By a margin of 46% to 19%, prospective buyers cited positive posts more often than negative comments as being most influential on their future purchases.
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  • The High Price of Customer Satisfaction

    Is customer satisfaction worth the cost? To find out, the authors investigated the relationship between customer satisfaction and business outcomes, gathering data from more than 100,000 consumers covering more than 300 brands. Although high customer satisfaction ratings are typically treated by managers as being universally good for business, the authors'findings indicate that the benefits are not nearly so clear-cut. There is a downside to continuously devoting resources to raise customer satisfaction levels. Managers are rarely able to accurately quantify the cost associated with increasing customer satisfaction scores (for example, from 8.7 to 9.1 on a 10-point scale), nor are they able to determine precisely what such an increase is actually worth. It turns out the return on these investments is often trivial or even negative. Knowing a customer's satisfaction level tells you little about how he or she will divide his or her spending among the different brands used. As a result, changes in customer satisfaction levels are unlikely to have a meaningful impact on the share of category spending customers allocate with your brand. Why? Single-brand loyalty, which was common in our parents'and grandparents'generations, has been replaced with loyalty to multiple brands in a category in many sectors. Because of this divided loyalty, more customers partially defect (in other words, they give more of their business to a competitor) than completely defect from a business or brand. As a result, improving customers'share of spending with your brand tends to represent a far greater opportunity than efforts to improve customer retention. kThe measure that really matters, according to the authors, isn't your percentage of delighted customers or promoters. What matters is the relative "rank"that your brand's satisfaction level represents vis-àvis your competitors.
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