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Ohio-based optical retailer Pearle Vision, part of the vertically integrated Italian eyewear group Luxottica, sold glasses and offered in-store eye exams. Once the largest U.S. optical retailer, Pearle Vision, with 266 corporate stores and 356 franchised stores in 2012, was struggling to compete with and differentiate itself from industry leader LensCrafters, also owned by Luxottica. Increasing competition from low-price competitors, such as Wal-Mart's optical stores, were adding further competitive pressure. The case takes place in early 2013, with Pearle Vision's new CEO announcing his plans for revitalizing the chain. Will his strategy work?

As he gets ready to release 2nd quarter 2012 results, Ron Johnson, the new CEO of department store J.C. Penney, is reconsidering the dramatic changes he initiated for the business model and brand image of his company. A new pricing scheme he put in place in February, dubbed "Fair and square", was a central component of the new strategy. The scheme initially had three pricing tiers and eliminated typical sales promotions in an attempt to simplify the shopping experience for consumers; thus moving J.C. Penney off its previous high-low pricing practice. Other components of the new strategy included a new store layout, the inclusion of several well-known brands, and having special lines designed by well-known designers. However, troubling first quarter results that continued into the summer months seemed to indicate that J.C. Penney shoppers, accustomed to receiving JCP Cash coupons and circulars advertising the week's specials, were slow to embrace the new pricing format and began leaving the retailer in droves. Under enormous pressure to turn things around as the all-important back-to-school and holiday shopping seasons were imminent, Johnson decided to make adjustments to the initial pricing scheme that were set to go into effect August 1st. Were these changes enough to turn things around? Should Johnson stay the course on the other elements of his repositioning efforts? Is Johnson's experience in setting up Apple stores helping or hurting him as he tries to achieve his goal of making J.C. Penney "America's favorite store?" (This is an abridged version of the original case, "J.C. Penney's "Fair and Square" Pricing Strategy", 513-036.)

In June 2013, the founder of Healing Through Humour, a comedy school for people with mental illness, considered his options to overcome the barriers to growth for his not-for-profit organization. The school, located in donated space in the offices of the Schizophrenia Society of Saskatchewan in Regina, was designed to build self-esteem and life skills for people suffering from mental illness, to raise public awareness about mental health issues and to break down barriers of mental health discrimination in the community. The classes were free to encourage attendance by those with limited means. Money from ticket sales for the class’s public performances was used to fund performance and operating costs, but there was little left over to expand the organization’s promotional budget beyond maintaining a basic website and Facebook page. Low attendance for both the classes and the performances underlined the need to identify and access target market segments to increase community awareness of this support service, grow the class size to a critical mass and secure ongoing funding to make this health care initiative sustainable.

In 2013, the chief executive officer of the Canadian guitar manufacturer MacKenzie & Marr Guitars was reviewing all options to increase monthly sales, which were well short of the goal of 100 guitars a month or $1 million in annual revenue. Unlike its competitors in Canada, the company sold its products only online, promising delivery within 10 days and providing a seven-day return guarantee if the customer was not satisfied with the product. The first set of decisions related to the launch of a new guitar model: what market segment should be targeted, whether to expand into the United States where the company would face significant online and brand competition, whether the guitar should be endorsed and how it should be priced. He also had to decide whether to begin selling guitar accessories to increase revenues. As well as his concern about product, he had to consider changes in tariff policies that might affect the costs of manufacturing in and shipping from China. Once these decisions had been made, he would then decide on how best to allocate the company’s limited monthly promotional budget, especially whether to increase his Facebook and Google advertising, or invest in industry magazine print ads, or do both.

Supplements the A case.

Bridges Ventures, a UK-based impact investor with double-digit returns on its investments, is reflecting on its social impact and pondering its future course.

In 2013, New York City Mayor Michael Bloomberg tried and failed to institute a ban on serving sizes of large sugary beverages. Obesity posed a large public health risk to the city. Mayor Bloomberg's proposed ban was one of many attempts to combat the rising threat of obesity. The case discusses the efficacy of the proposed ban on large soda serving sizes in the context of the other anti-obesity initiatives crafted by Bloomberg's administration.

Chow Tai Fook (CTF) is China's largest jewelry retailer by market capitalization, with reported sales of USD7.4 billion in fiscal year 2013 and is less known to Westerners. Within mainland China, the Hong Kong-based brand was better known than other international jewelry brands such as Bulgari and Tiffany. CTF's aggressive expansion strategy in China aimed to have 2,000 point-of-sales outlets by the end of 2014. Faced with rapidly changing demographic, social, economic, and digital landscapes within Mainland China, Kent Wong, the Managing Director of CTF, is challenged to fine-tune CTF's operation and marketing strategies in order to sustain its leading competitive position. The company is also facing some severe headwinds that could slow down its growth path. One of the biggest hurdles is the anti-graft drive initiated by the Chinese President to stamp out corruption among government officials. Many analysts fear that this campaign would have negative or even devastating consequences for many luxury goods companies like CTF, especially for goods associated with conspicuous consumption.

In the hotel industry, the reuse of towels is considered a main step toward reducing hotels’ high carbon footprint. Windermere Manor, a private, high-end hotel, has established a routine to encourage its guests to reuse towels; however, the hotel’s towel-replacement rate exceeds its towel-reuse rate. The intended routine for identifying towels for reuse is not being followed, even by the hotels’ own housekeeping staff. The hotel's general manager examines the reasons for the breakdown of routine and considers ways of correcting the situation.

In 2010, the commissioner of the Ontario Hockey League was generally satisfied with its operations but knew that certain markets were not reaching their potential. Management needed to use data to make some potentially difficult decisions, including possibly closing several teams down. The data included proximity of competition from other hockey leagues and other sports teams; how long a team had been in its city; how many points the team earned each season and how many of its players graduated to the National Hockey League; the make-up of the city in terms of its size, median income, median house price and its immigrant and visible minority populations; and, finally, the price of tickets. There were a few teams that were significant outliers at each end of the spectrum. What was the league going to do with the teams at the bottom that were dragging down average attendance figures? Student spreadsheet 7B13A028 with data is available.

The president and chief operating officer of Chick-fil-A is a devout Christian who publicly operates his restaurants according to Biblical principles. A recent controversy has surrounded his public opposition to gay marriage. As a result, the company is being accused of discrimination and prejudice. Are the company's deeply rooted Christian values hindering the business?

This technical note provides a basic introduction to multiple linear regression. The concept of regression using a single independent variable is first introduced and then some of the practical challenges associated with it--including multiple independent variables in a regression--are discussed. Particular attention is paid to bias in the regression coefficients in the presence of omitted variables. The concept of the economic significance of a model is introduced and is contrasted with statistical significance. At Darden, it is used in a course elective titled "Big Data in Marketing."

In early May 2013, Abercrombie & Fitch, a high-end clothing retailer in the United States, faced a loss of consumer confidence in its brand after quotes made by its CEO in an interview seven years earlier resurfaced. His remarks fostered the perception that the company was prejudiced against overweight people. In response, angry consumers released a YouTube video entitled #FitchTheHomeless urging people to donate their Abercrombie & Fitch clothing to homeless individuals. This video went viral and inspired negative feedback towards the company from both social media networks and mainstream media outlets. Abercrombie & Fitch's first response came 12 days later with a second apology issued the following week. Nonetheless, the controversy continued, and by June, Forbes announced that the company's BrandIndex Impression was at an all year low. How can Abercrombie & Fitch reverse the negative feedback and regain its consumers' loyalty? You might also like: Abercrombie and Fitch, Mountain Dew: The Most Racist Soft-drink Commercial in History?, Domino's Pizza

In 2012, over 750 million people around the globe lacked access to safe drinking water. Dean Kamen, inventor of the Segway, sought to bring fresh water to poor and rural areas with the Slingshot, a water purification device. Kamen's challenge was to identify ways to distribute the Slingshot to areas where it was most needed. A partnership with the Coca-Cola Company helped Kamen to pilot distribution of the Slingshot in low-access regions.

Chinese Galanz was the world's largest microwave oven manufacturer in 2013. It had sales of 20 million microwave ovens, group revenues of RMB46 billion (US$7.3 billion) and 46,000 employees. Founded in 1978, it started manufacturing microwaves in 1991. Since then it had grown its business rapidly; in the early 2000s, Galanz had become the largest microwave manufacturer in the global market in terms of units, a position it continued to hold in 2013. In addition, it had become the top seller of electric ovens in the world, and established significant presence in the air conditioning (AC), refrigerator, and dishwasher categories. The case outlines Galanz's impressive achievements in just two decades, describing the reasons for its success: the unique market conditions on both supply and demand side, Galanz's successful OEM model and pricing strategy, and its ability to transform the industry dynamics in the process. However, with increasing pressure of competitive threats, it could no longer rely on its business model to ensure continued growth and profitability. Galanz decided that it needed to move beyond its OEM business to become a consumer brand. The case investigates the way that Galanz is seeking to do this, investing in R&D to stimulate product innovation and changing the organisational design to get closer to its customers. It then looks at Galanz's efforts to diversify into other categories. It also explores some of the global market dynamics at play in various white goods industries.

Basics of Branding: A Practical Guide for Managers is a 6-chapter book published in 2013 by the Business Expert Press and written by Jay Gronlund, president and founder of The Pathfinder Group and instructor at New York University. Gronlund provides an in-depth analysis of branding and the requirements of successful brand development. He explores critical concepts including market positioning, brand equity, and content marketing as well as the implications of continuing changes in the market environment due to technology. Using illustrative examples from well-known brands and summarizing important research, he provides practical guidance and insight for both managers and students. In Chapter 1, What Is Branding Really About? (15 pages), the author explores the concept of branding, its role in marketing, and branding mistakes that business managers often make. He explains how a successful brand creates a connection with the customer and the importance of strategic product positioning. He outlines shared characteristics of successful brands and explains how compelling brand messages cut through modern communication "clutter." He also presents a framework for strong brand development, which includes articulating elements such as value proposition, competitive advantage, and business potential.

Briefly describes content of case. Basics of Branding: A Practical Guide for Managers is a 6-chapter book published in 2013 by the Business Expert Press and written by Jay Gronlund, president and founder of The Pathfinder Group and instructor at New York University. Gronlund provides an in-depth analysis of branding and the requirements of successful brand development. He explores critical concepts including market positioning, brand equity, and content marketing as well as the implications of continuing changes in the market environment due to technology. Using illustrative examples from well-known brands and summarizing important research, he provides practical guidance and insight for both managers and students. In Chapter 2, The Positioning Statement, Emotions, and Brand Equity (53 pages), the author examines at length the critical components of brand building. The first is the positioning statement, which brings together information about customer needs, competition, and consumer benefits in a "blueprint" that guides all marketing efforts. Using well-known brand examples, the author explains each aspect of a strong positioning statement and provides practical guidance for developing a statement. Second, the author explains the importance of understanding the customer's perspective to create an emotional relationship between brand and customer; he also outlines a process for gaining consumer insight, summarizing research on emotions and behavior. Third, the author explains brand equity, how to build it, and its benefits. He looks at how to measure equity, summarizes several basic methodologies, and reviews high-value brands in the real world.

Briefly describes content of case. Basics of Branding: A Practical Guide for Managers is a 6-chapter book published in 2013 by the Business Expert Press and written by Jay Gronlund, president and founder of The Pathfinder Group and instructor at New York University. Gronlund provides an in-depth analysis of branding and the requirements of successful brand development. He explores critical concepts including market positioning, brand equity, and content marketing as well as the implications of continuing changes in the market environment due to technology. Using illustrative examples from well-known brands and summarizing important research, he provides practical guidance and insight for both managers and students. In Chapter 3, Branding Applications (32 pages), the author explores five different areas for branding outside of product marketing, providing background and practical insight on developing brands for corporations, employers, individuals, global markets, and countries. First, drawing on the example of General Electric, he highlights the importance of corporate values, vision, and mission. Second, he explains the importance of a strong internal or employer brand, aimed at creating a robust and positive culture for employees. Third, he discusses the emerging concept of a personal brand for networking and job search purposes. Fourth, he explains the development of the transnational and global brands. Finally, he presents a model for building a country's brand in the global economy.