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Creating Product Addicts
This article highlights the four key interrelated areas in which brand addiction can be planned: product, rewards, price and communications. Historically, marketers have focused on more traditional, obvious benefits of products. However, reward systems such as loyalty programs are useful in increasing differentiation and encouraging consumer habituation. Intrinsic consumer rewards (e.g. personal satisfaction) stand in contrast to extrinsic rewards (e.g. point systems), but when consumers repeatedly modify their behaviours in order to, for example, achieve more points, they may convert extrinsic rewards into intrinsic ones. Firms have long used discounting and loss leaders to attract business and, in going a step further, a “free price” for a product may help to foster product addicts. Here, consumers can pay in other ways, such as through attention, referrals or feedback. Furthermore, firms are increasingly using communications strategies to support the repetition of modified purchasing behaviours. Ultimately, the key is to conceive of the four elements of planning brand addiction in new ways, starting with a meaning for the product that goes beyond the main product benefit the customer derives, and then using the communications strategy to support the repetition of modified purchasing behaviours and to bring forth a new consumer consciousness. -
Managing Online Reviews on TripAdvisor
In 2013, TripAdvisor was the most visited online travel site in the world. It hosted a massive repository of information on hotels and travel services, and provided millions of reviews written by consumers. Consumers were becoming increasingly motivated to read and write reviews on TripAdvisor, largely as a means of informing other consumers about their personal experiences, but also to praise or complain to hotels about their experiences. In response, hotels were investing more time and marketing budget on managing the quantity, quality and location of online reviews, with particular attention paid to TripAdvisor. -
Cisco's Vision: A Smart+Connected World
Having been called upon by global leaders to use its technology to address the global crises of climate change and poverty, Cisco opts to pursue sustainability for corporate social responsibility and as a driver of differentiation and competitive advantage. The case discussion explores how the company answered this call to action and how the resulting strategies have proven effective in protecting its competitive advantage in an increasingly hostile business environment. The case traces the company’s historical rise to power through the Internet bubble of 2000 and up to the present day, as the firm adjusts to competition in the 21st century. With the introduction of its new and ground-breaking technology, Cisco seeks to drive sustainability and future profits. The question becomes: will it work? <br><br>The CEO ponders how he could use his company’s core business of information technology (IT) to drive global environmental and economic sustainability. Can he fulfill his dual responsibility of doing the right thing for his shareholders while, at the same time, doing the right thing for the world at large? -
Ecovative Design LLC: A Biological Materials Startup
Ecovative Designs (Ecovative), a start-up company in upstate New York, uses an innovative process to combine agricultural waste and mycelium (mushroom “roots”) to grow forms for use in a wide variety of applications, especially a protective packaging material. Not only does this new product replace the need for the environmentally harmful alternative, extruded polystyrene, but the production process is less energy intensive. It exemplifies the cradle-to-cradle design indicative of a sustainably embedded product and attractive to companies looking to reduce their carbon footprint. In just a few years, Ecovative has expanded from a lab to a large facility funded partly through research grants and partly from contracts with two large corporations. In 2013, the partners are considering whether to sign a contract with Sealed Air, one of the largest distributors of packaging materials in the world, but the deal would mean relinquishing control over the only profitable segment of their company. They are considering alternative growth strategies to find the one that fits best with their goal: to have the largest impact on the planet while remaining profitable. -
Verbeek Packaging Worldwide (A): The TotPet France Account
This series of cases follows the changing relationship between Verbeek's Industrial Packaging Division with TotPet, a major French oil company, after TotPet launched a supply chain rationalization effort. As the only truly international supplier of oil drums, Verbeek assured its customers of quality, proximity and continuity of supply, while at the same time handling sales relationships locally. With more and more global clients, like TotPet, reengineering their purchasing and supply chain operations to reduce the number of suppliers and form global relationships, the pressure mounted to gain control of prices, which had traditionally been based on local competitive conditions and relationships. -
Verbeek Packaging Worldwide (B): The TotPet France Account
This series of cases follows the changing relationship between Verbeek's Industrial Packaging Division with TotPet, a major French oil company, after TotPet launched a supply chain rationalization effort. As the only truly international supplier of oil drums, Verbeek assured its customers of quality, proximity and continuity of supply, while at the same time handling sales relationships locally. With more and more global clients, like TotPet, reengineering their purchasing and supply chain operations to reduce the number of suppliers and form global relationships, the pressure mounted to gain control of prices, which had traditionally been based on local competitive conditions and relationships. -
Verbeek Packaging Worldwide (C): The TotPet France Account
This series of cases follows the changing relationship between Verbeek's Industrial Packaging Division with TotPet, a major French oil company, after TotPet launched a supply chain rationalization effort. As the only truly international supplier of oil drums, Verbeek assured its customers of quality, proximity and continuity of supply, while at the same time handling sales relationships locally. With more and more global clients, like TotPet, reengineering their purchasing and supply chain operations to reduce the number of suppliers and form global relationships, the pressure mounted to gain control of prices, which had traditionally been based on local competitive conditions and relationships. -
Verbeek Packaging Worldwide (D): The TotPet France Account
This series of cases follows the changing relationship between Verbeek's Industrial Packaging Division with TotPet, a major French oil company, after TotPet launched a supply chain rationalization effort. As the only truly international supplier of oil drums, Verbeek assured its customers of quality, proximity and continuity of supply, while at the same time handling sales relationships locally. With more and more global clients, like TotPet, reengineering their purchasing and supply chain operations to reduce the number of suppliers and form global relationships, the pressure mounted to gain control of prices, which had traditionally been based on local competitive conditions and relationships. -
Verbeek Packaging Worldwide (E): The TotPet France Account
This series of cases follows the changing relationship between Verbeek's Industrial Packaging Division with TotPet, a major French oil company, after TotPet launched a supply chain rationalization effort. As the only truly international supplier of oil drums, Verbeek assured its customers of quality, proximity and continuity of supply, while at the same time handling sales relationships locally. With more and more global clients, like TotPet, reengineering their purchasing and supply chain operations to reduce the number of suppliers and form global relationships, the pressure mounted to gain control of prices, which had traditionally been based on local competitive conditions and relationships. -
Digital Marketing Strategy, Course Overview Note
Digital Marketing Strategy is the process by which firms employ, either partially or exclusively, digital tools, techniques, and tactics to create value for customers. -
Legal Aspects of Pricing
This technical note explores some of the legal implications that companies face when deciding how to price their goods. It focuses on the three main federal antitrust laws: the Sherman Antitrust Act, the Clayton Antitrust Act, and the Robinson-Patman Act. By learning the basics of these antitrust laws, those who read this note will have a better idea of how to avoid violating these laws. -
VP Group: Vegpro Grows Beyond Kenya
In 2013, Kenyan horticulture producer and exporter VP Group is weighing potential expansion opportunities against the growing risks in its production and export markets. With $121 million in 2012 revenues, VP Group has grown rapidly in recent years by expanding its vegetable and flower production beyond Kenya into Ethiopia and Ghana; exploring new products such as sugar; and vertically integrating by bringing marketing and logistics operations in-house. The company's leadership is excited about future growth opportunities but also concerned about the impact of VP Group's growth on its entrepreneurial culture. The company also faces increasing cost pressures due to rising costs in Kenya and flat prices in U.K. supermarkets, its main buyers. VP Group's size, vertical integration, and focus on sustainability leave it well positioned as a long-term partner to U.K. supermarkets, but changes to the overall operating environment might require the company to rethink its strategy. -
Clique Pens: The Writing Implements Division of U.S. Home
The Clique Pens Writing Implements division of U.S. Home is a manufacturer of a full line of pens, pencils, markers, and art supplies. Despite solid sales, division president Elise Ferguson has seen gross margins drop from 42% in 2010 to just over 36% in 2012 as a result of various discounts, allowances, and other off-invoice deals. She is now considering a move away from these discounts in favor of Market Development Funds (MDF), which would be used explicitly to promote retail merchandising activity for Clique and in theory provide the company with more control of trade promotional dollars to influence consumer behavior. Along the way, Ferguson must consider the structure and problems of various trade promotions and the conflicting needs of her sales and marketing departments. This case introduces basic elements of promotion and pricing policy and the challenges of marketing through major mass retailers. -
An Irate Distributor: The Question of Profitability
In June 2012, an area sales manager at NutriPack India, a multinational company dealing with fast-moving consumer goods, had to find a way to match the success of his predecessor in increasing retail outlet coverage in central Maharashtra. He studied the territory data and identified the Jalgaon region as having the potential for high growth. However, the single distributor for Jalgaon was upset because he had already increased his operations the previous year and was unconvinced that this had been profitable. The area sales manager needed to convince this distributor of the benefits of his past investments, and also convince him to make further investments (e.g., hire more salespersons). <br><br><br><br>This case illustrates the challenges that young area sales managers face when they have to deal with experienced distributors in the Indian retail trade, especially in smaller towns where relationships can greatly affect business. Students will gain an understanding of the key performance indicators required to focus on developmental issues in a territory. They will appreciate financial considerations as a major tool in dealing with intermediaries, such as distributors, and will gain practical knowledge in how to convince a distributor of his past investments and profitability, and pave the way for further investment for retail expansion. -
IBM's Digital Influence Program
In 2011, IBM India was experimenting with social media applications to extend its marketing mix. A social media campaign named Digital Influence was launched to gain market share for the company’s software products, influence groundswell and develop technical evangelists. Within a year, the share of voice and reach for the company’s five software brands increased significantly. However, the company’s marketing and communications director was hesitant to declare victory. Was the model sustainable? What challenges would the company face in the implementation process? Would the plan of operations continue to help the company gain market space and create technical evangelists? -
Barbara Krakow Gallery
The Barbara Krakow Gallery is a successful contemporary art gallery located in Boston. It utilizes a very rare "no haggle pricing" strategy and extended sales cycle when selling pieces to collectors. Though it remains profitable and very respected, the size and scope of the gallery will be brought into question when Barbara Krakow, its founder, retires and hands it over to her associate, Andrew Witkin. -
Making Mobile Ads That Work
Research shows that mobile banner ads can be effective for some products--those that are both utilitarian and "high involvement" (bought only after much deliberation on the consumer's part). Marketers who understand this can spend their mobile dollars more wisely and tailor and time their ads for maximum impact. -
Volkswagen in India
The case traces the entry of Volkswagen (VW) in India at a time when India will play a key role in fulfilling VW's global ambitions. The case describes the consumer research conducted by VW to identify consumer insights which pave the way for designing products to meet local needs and aspirations. The case describes VW's segmentation, targeting and positioning strategy for India against the background of its global brand values. The case traces the launch strategy of each of the models - Passat, Jetta, Touareg, Phaeton, Beetle, Polo and Vento. The case invites students to review the marketing and communication strategy of VW to enable it to fulfill its vision of being among the top three brands in India by 2018. The vision is challenging, particularly because VW is a very late entrant in the Indian market. The rich data in the case enables full-blown discussion on whether VW is differentiating itself enough in the competitive market place; or is it giving a compelling reason to the consumer to buy its brands. -
Le Cerf de Tremblant
An owner was concerned about the condo she bought in Mont Tremblant, Quebec in 2006 as an investment property and for occasional use by her family. A beautiful, five-bedroom unit with a panoramic view over the La Bête golf course, it was close to the ski area, the village of Tremblant, shopping, spas, restaurants and a casino. It was fully furnished with many upgrades. However, by 2010, the number of rentals was disappointing, and the unit was operating well below expectations. Something had to be done to increase occupancy or she would have to sell the property. She considered changes in all aspects of marketing: her target, positioning, product features, pricing, distribution and promotion. She needed to assess the situation and determine what could be done to generate more bookings and make the venture profitable. -
Paid Search Advertising
This note provides a primer on paid search advertising, which is an important component of digital marketing. The mechanics of paid search is explained using the Google search engine platform. The note covers metrics for evaluating the performance of paid search, the strategic objective of paid search, the relationship between customer lifetime value and search ads, how to overcome sparse data problems using keyword clouds, and the nature of Google AdWords's enhanced campaigns.