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Campbell Soup: Gaining Customer Insights Through Marketing Research
In early 2008, Campbell Soup Company, a global food and beverage enterprise, is experimenting with a new way of understanding the mindset of its consumers. This has been prompted by the stagnation in sales of its soup products in the United States, its home market, where the soups category has matured. For decades, the company’s focus in marketing research has been on tracking how the end users, having bought its soup products at stores, consume them at home. But now, it is keen on tracking the shoppers while they are searching the retail aisles. The company is planning to deploy the techniques of consumer neuroscience, a relatively new discipline, for this purpose. -
Why Consumers Rebel Against Slogans
Whereas brand names can "prime" consumers to react positively to a product or business, slogans often backfire, because people recognize them as attempts to persuade. Marketers should be aware of this backlash and avoid messages that can be seen, even subconsciously, as manipulative. -
Healthymagination at GE Healthcare Systems
Jeff Immelt, the CEO of GE, introduced a new innovation strategy named "healthymagination" in Spring 2009. With cost, quality, and access as its three pillars, healthymagination ensures a strong focus for new product introduction efforts all around GE. But will this focus enable GE to achieve and maintain market leadership across a healthcare market that is being buffeted by strong currents, including cost pressures, changes in chronic disease patterns, and rationalization of buyer behavior? Moreover, healthcare spending is also increasing in emerging economies, which could provide a strong growth engine for the future. Tom Gentile, the CEO of GE Healthcare Systems (GEHS), a key player in the Medical Imaging market, wonders how the innovation strategy might respond to these changes. GE has historically been a technology leader, selling the most advanced equipment to a variety of medical establishments. Will a complete shift to healthymagination allow GE to demonstrate strong organic growth through innovation, as Immelt had charged executives at GE? -
The Rise of the Regional Sport Network Content Ownership in an Ever-Changing World: The YES Network in 2009
In 2009, the digital world was in a period of drastic change. The YES Network, the regional sports network linked to the New York Yankees baseball club, was at the forefront of the issue of the day: the management of digital rights. In simpler terms, they were faced with the challenge of merchandising broadband, wireless and interactive TV while not undermining our existing television audiences. Risks were high and the management challenge intense. This issue was facing all regional sport networks (RSNs) as club and league management seek to maintain their fanbases, grow their revenues and expand their footprints. In 2009, the technology for online streaming existed, was in place, and was affordable. However, the quest for a business model between the content owners (television networks and content rights holders such as MLBAM) and the 'TV Everywhere' concept of cable operators such as Time Warner and Comcast was ongoing. This case outlines the challenge of monetizing these new areas while not disrupting core business models and cannibalizing current revenue sources. Notably, the television cable model was superior to the broadcast model in terms of revenue generation with cable networks reporting high profitability in 2009. -
Orchid Ecotel: Leveraging Green Hoteling as Core Competency
Vithal Kamat (CMD, Kamat Hotels India Ltd.) is a second generation entrepreneur who has taken the Kamat Hotels brand to new heights. A small restaurant chain was transformed into a full-fledged hospitality services group under his leadership. Kamat Hotels (India) Ltd. included five major verticals from five-star luxury hotels (The Orchid Ecotel) to economy restaurants (namely Kamat Restaurants) that catered to the different customer segments. Kamat had ambitious plans for the expansion of every vertical using alternative growth strategies. However, the recent economic slump had caused a sudden setback due to the fall in average room occupancy and competing room-tariff rates offered by other hotels. In such a tumultuous situation, Kamat planned to use the core competency of the hotel as an 'ecotel,' that is, an environment friendly hotel, to go in for corporate branding and lever its position in the market. The case illustrates the challenges faced by Kamat in extending the core competency of 'The Orchid' to its other verticals. The Orchid had performed better than the industry average until 2008. However, in 2009, the performance dipped, partly because of the economic recession. This prompted the board members of the company to decide on extending the core competency of the ecologically sustainable hotel into other verticals. However, this decision had to be considered carefully in the light of its impact on 'The Orchid' as well as on the other verticals. What are the challenges that will be faced while extending the core competency of 'ecoteling' to the other verticals? There were numerous related issues that needed to be addressed strategically as well as tactically, in order to maintain a balance between extending the core competencies across the verticals while extending the brand per se. -
Orchid Ecotel: Leveraging Green Hoteling as Core Competency
Vithal Kamat, chairman and managing director of Kamat Hotels India Ltd., was a second-generation entrepreneur who has taken the Kamat Hotels brand to new heights. Kamat Hotels included five major verticals, from five-star luxury hotels (The Orchid Ecotels) to economy restaurants (Kamat Restaurants) catering to different customer segments. Kamat had ambitious plans for the expansion of every vertical using alternative growth strategies. However, the recent economic slump had caused a sudden setback due to the fall in average room occupancy and competing room-tariff rates offered by other hotels. In such a tumultuous situation, Kamat planned to use the core competency of The Orchid as an “ecotel,” that is, an environmentally friendly hotel, to go in for corporate branding and leverage its position in the market.<br><br>The case illustrates the challenges faced by Kamat in extending the core competency of The Orchid to its other verticals. The Orchid had performed better than the industry average until 2008, but in 2009 its performance dipped, partly because of the economic recession. This prompted the company board members to decide on extending the core competency of the ecologically sustainable hotel into other verticals. However, this decision had to be considered carefully in light of its impact on The Orchid as well as on the other verticals. What were the challenges that would be faced while extending the core competency of “ecoteling” to the other verticals? -
Himalaya Herbal Toothpaste: Category and Brand Involvement in an Emerging Market
Ramesh Kumar was curious to determine whether consumers were loyal to toothpaste brands. Himalaya Herbal Toothpaste had herbal offerings in the retail and prescription segments, affording him the opportunity to conduct research. Were consumers loyal to a particular brand of toothpaste? Did they remember the functional brand benefits? Were consumers buying brands due to the social benefits reflected in ads? Did consumers continue to buy particular brands without switching? Were consumers interested in herbal toothpastes? How should Himalaya be perceived by consumers? This series of issues presented an opportunity to conceptualize consumer behaviour in the Indian context. <br><br>The concept of product involvement differentiates consumer segments based on the degrees of personal interest expressed by consumers with regard to products and services. High-involvement categories require consumers to be involved in extensive buying behaviour that leads to one or more of the following: risk reduction, enhancement of self-image, and gratification in having achieved an optimal choice after examining the alternatives. Low-involvement categories are those that are bought in a routine manner by consumers, with a lower degree of personal interest. Marketers always face competitive challenges in enhancing the degree of involvement even in low-involvement categories through appropriate branding initiatives, including in the toothpaste category. -
Himalaya Herbal Toothpaste: Category and Brand Involvement in an Emerging Market
Kumar was curious to find out whether consumers were really loyal to the brands in the toothpaste category. He was interested in the toothpaste category, and Himalaya had herbal offerings in the retail and prescriptive segments. Were consumers loyal to a particular brand of toothpaste? Did they remember the functional brand benefits? Were consumers buying brands due to the social benefits reflected in the ads? Did consumers continue to buy particular brands without switching, due to inertia? Were consumers interested in herbal offerings? How should Himalaya be perceived by consumers? This medley of issues presented yet another opportunity to an academic to conceptualize consumer behaviour, one that was perhaps unique to the Indian context.<br><br>The concept of product involvement differentiated consumer segments based on the degrees of personal interest expressed by consumers with regard to specific products and services. High-involvement categories required consumers to be involved in extensive buying behavior that led to one or more of the following aspects: risk reduction, enhancement of self-image, and a greater degree of gratification in having achieved an optimal choice after examining the various alternatives in the category. Low-involvement categories were those that were bought in a routine manner by the consumer, with a degree of personal interest that was lower than that associated with the high-involvement categories. Marketers always had to face competitive challenges in enhancing the degree of involvement even in low-involvement categories through appropriate branding initiatives. The toothpaste category was one such category in the Indian context. -
Positioning the Tata Nano (A)
The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world's cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen. -
Positioning the Tata Nano (B)
The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world's cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen. -
Selling CFLs at Wal-Mart
In early 2009, Wal-Mart executive Andy Barron realized the firm's lighting business was facing a challenge. After achieving a goal of selling 100 million compact fluorescent light (CFL) bulbs by the end of 2007, sales of the energy-efficient bulbs had started to plateau, leading to a dim outlook for 2009. Barron needed to examine what barriers might be keeping consumers from adopting more of the bulbs, which offer both cost savings and environmental benefits. In this 2-part case students study the historic price points and sales of CFL bulbs, Wal-Mart's 2007 promotion of CFL lighting, and research about consumer adoption of the bulbs in order to understand how the retailer might achieve its goals. The case asks: How can consumer habits be changed? How can new products overcome barriers to adoption? What can managers do to promote sales of new products, given human behavior where biases, values and emotions have an impact on the choices people make? How can economic theories explain consumer behavior as it occurs in the real world? The Epilogue to the first case asks students to discuss what developments occurred after the 2009 implementation and how they impacted CFL sales. -
Selling CFLs at Wal-Mart, Epilogue
In early 2009, Wal-Mart executive Andy Barron realized the firm's lighting business was facing a challenge. After achieving a goal of selling 100 million compact fluorescent light (CFL) bulbs by the end of 2007, sales of the energy-efficient bulbs had started to plateau, leading to a dim outlook for 2009. Barron needed to examine what barriers might be keeping consumers from adopting more of the bulbs, which offer both cost savings and environmental benefits. In this 2-part case students study the historic price points and sales of CFL bulbs, Wal-Mart's 2007 promotion of CFL lighting, and research about consumer adoption of the bulbs in order to understand how the retailer might achieve its goals. The case asks: How can consumer habits be changed? How can new products overcome barriers to adoption? What can managers do to promote sales of new products, given human behavior where biases, values and emotions have an impact on the choices people make? How can economic theories explain consumer behavior as it occurs in the real world? The Epilogue to the first case asks students to discuss what developments occurred after the 2009 implementation and how they impacted CFL sales. -
Sushilicious: Standing Out in a Crowded Field
The founder of Sushilicious, a new restaurant in California, was thinking about how to make his second year in the business even more successful. His objective is to grow the current base for his restaurant with a limited marketing budget. The founder has had success building his first restaurant using a combination of social media tools and now wonders how he can build upon his current communication strategy. -
Nouveau Event Planning: The Wedding Extravaganza
For the last 24 years Nouveau Event Planning has been operating the largest wedding expo in Windsor, Ontario, Canada, an event called the Wedding Extravaganza. In 2001 the Wedding Odyssey became the second Wedding Expo in Windsor, and started to pose a significant threat to the Wedding Extravaganza. Some strategic decisions in the case include pricing, customer retention, and selection of an appropriate target market. Students are asked to determine the best course of action for the exhibition through analysis of the competitive landscape and future potential of the wedding industry. -
Sushilicious: Standing Out in a Crowded Field
The founder of Sushilicious, a new sushi restaurant in California, is wondering how to make his second year in the business even more successful. His objective is to grow the current base for his restaurant with a limited marketing budget. The founder has had success building his first restaurant using a combination of social media tools and now wonders how he can build upon his current marketing strategy. Furthermore, should he franchise the Sushilicious concept, open a second restaurant, or focus entirely on the first location? -
Nouveau Event Planning: The Wedding Extravaganza
Since 1988, Nouveau Event Planning has been operating the largest wedding expo in Windsor, Canada, an event called the Wedding Extravaganza. In 2001, the Wedding Odyssey became the second wedding expo in Windsor, and started to pose a significant threat to the Wedding Extravaganza. Now in 2011, the owner of Nouveau Event Planning must make strategic decisions involving pricing, customer retention, and selection of an appropriate target market. She must also determine the best course of action for the exhibition through analysis of the competitive landscape and future potential of the wedding industry. -
First Class Trading Corporation
First Class Trading Corporation, a Montreal-based company, had two partners: Jeff Morahan, the founder of the company, and David Sciacca. After evaluating the school supplies industry, Morahan had identified an opportunity to market a fully stocked school bag to schools and parents. The bag was filled with various items that a child needed as determined by a given teacher’s requirements. The strategy of the company was to target elementary and secondary private schools in the greater Montreal area, with elementary schools as the initial target. To date, the partners had generated a disappointing level of sales through cold calls and sales visits to schools. They had drawn up a strategic plan with objectives, positioning, and a marketing mix and were now wondering if they were on the right track. Had they missed something? Should they seek additional advice? Should they move ahead? The situation was complicated because of the stakeholders (school directors, teachers, parents, and students) involved in the marketing process. -
First Class Trading Corporation
First Class Trading Corporation, a Montreal based company, had two partners: Jeff Morahan, the founder of the company, and David Sciacca. After evaluating the school supplies industry, Jeff had identified an opportunity that involved marketing a fully stocked school bag to schools and parents. The bag was filled with various items that a child needed as determined by a given teacher's requirements. The strategy of the company was to target elementary and secondary private schools in the greater Montreal area with elementary schools as their initial target. To date, the partners had generated only a disappointing level of sales through cold calls and sales visits to schools. The two partners had drawn up a strategic plan with objectives, positioning and a marketing mix and were now wondering if they were on the right track. Had they missed something? Should they seek additional advice? Should they move ahead? The situation is complicated because of the various stakeholders (school directors, teachers, parents and students) who are involved in the marketing process. -
Campbell Soup: Gaining Customer Insights through Marketing Research
In early 2008, Campbell's Soup Company (Campbell's), a global foods and beverages enterprise, is experimenting with a new way of understanding the mind of its consumer. The trigger is provided by the stagnation in the sales of its soup products in the United States, its home market, where the soups category has become mature. For decades, the company's focus in marketing research (MR) has been on tracking how the end users, having bought its soup products at the store, consume them at home. But now, it is keen on tracking the shoppers while they are cruising along the retail aisles. The company is planning to deploy the techniques of consumer neuroscience, a relatively new discipline, in the regard. -
Drowling Mountain
It was August 2011 and Martin Cartier, senior board member of Drowling Mountain, was beginning to feel the pressure of Drowling Mountain Ski Resort’s 2010 general meeting that was coming up in two months. Drowling Mountain had historically been the ski resort of choice for the local residents of Syracuse, New York. However, the company had recorded losses for the past two years. At last year’s annual general meeting, Cartier explicitly stated that he would bring the company to sustainable operations. He felt personally responsible for the company’s struggles, since he was the longest-serving member on the board. Management had been keen on developing a new marketing plan focused on new pricing schemes and increasing sales, but Cartier thought an advance meeting to discuss the plan with select board members would be advantageous. He held significant influence in the forthcoming meeting in October, and any recommendations that he made were likely to determine the future success of the company.