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Ten Thousand Villages of Cincinnati: The First Year and Beyond
Ten Thousand Villages (TTV) is a nonprofit fair trade retail organization with a store located in Cincinnati, Ohio. During the store's opening and first two years of operations (2002-2004), Karen, the chair of the board of directors, and Cheryl, the store manager, struggle to develop a customer-focused plan to ensure sales increases for their unique operation. Marketing issues ranging from store location selection to inventory selection and promotion are presented. In addition to covering an alternative method of doing business - nonprofit enterprise - the case provides a platform for customer relationship management (CRM) implementation in a small, nonprofit environment. -
Reading the Public Mind
As technology destroys traditional survey methods, it offers hope for new accuracy. -
Commercials Make Us Like TV More
Do ads that break into your television programs annoy you? Surprising new research by the Haas School's Leif Nelson reveals that commercials may actually make your viewing experience more enjoyable. In recent studies he conducted, subjects rated programs with ads much higher than programs without them. The phenomenon at work here is adaptation: The longer an experience lasts, the more people get used to it, and the less they enjoy it. But if that experience is interrupted (for instance, with a commercial), people's initial feelings of pleasure are retriggered. -
Unleashing the Power of Marketing
Until a few years ago, General Electric believed that its products could virtually market themselves. Marketers had been limited to passively pushing information to those centrally responsible for innovation-typically in R&D or engineering-with the result that brilliant minds were languishing in dead-end jobs. When it came to discussions about corporate strategy, marketing wasn't at the table. But as GE's businesses matured, the company realized that it could no longer win simply by launching increasingly sophisticated technologies or taking existing technologies to new markets. To succeed, GE would need a marketing engine that could collaborate directly with customers and lead to new markets-one rooted in standards as rigorous as those for functions such as finance and human resources. CEO Jeff Immelt issued a mandate that marketing should be a vital operating function across GE and an engine for organic growth. The marketing team took on the challenge of identifying and codifying from scratch the skills it would need. The result was a marketing framework for the entire company along three dimensions: principles (creating a common language and standards), people (getting the right leaders in place), and process (including very specific measures for grading performance). Marketers took their place alongside technologists and had a voice earlier in the process, as GE's innovation expanded to include ideas grounded in customer needs and market trends. -
How French Innovators Are Putting the "Social" Back In Social Networking
Media entrepreneur Kramer looks at three French companies that use low-tech ways to better connect with customers. Luxury-goods maker Boucheron hosts intimate dinners with a small number of key customers; Nespresso's French subsidiary is making big investments in telephone call centers-despite the fact that most orders come through other channels-and training staff members to spend more time talking to customers; and Vente-Privee treats its key suppliers like customers, forging personal connections with them. Kramer argues that even in an era when so many companies are obsessed with social networking and trying to amass millions of followers on Twitter and Facebook, the deepest relationships between businesses and customers continue to be formed offline, where they are better able to engage in true dialogue. -
Can You Measure the ROI of Your Social Media Marketing?
This is an MIT Sloan Management Review article. We are going about the way we measure the return on investment in social media completely backwards. Effective social media measurement should start by turning the traditional ROI approach on its head. That is, instead of emphasizing their own marketing investments and calculating the returns in terms of customer response, managers should begin by considering consumer motivations to use social media and then measure the social media investments customers make as they engage with the marketers' brands. Handling the measurements this way makes much more sense. It takes into account not only short term goals such as increasing sales in the next month via a social media marketing campaign, or reducing costs next quarter due to more responsive online support forums, but also the long-term returns of significant corporate investment in social media. The authors show how you can implement this new kind of measurement and point to the benefits of doing so. -
Taj Hotels, Resorts and Palaces
The Taj Hotels, Palaces, and Resorts introduced a new brand architecture to counter lack of differentiation and confused positioning of its mixed bag of brands. After launching an economy and an upscale brand, it dithered over the launch of its upper upscale and luxury brands. The case illustrates the marketing and organizational challenges of a hybrid brand extension strategy that lies in between a 'house of brands' and a 'branded house'. -
Matchstick Inc.: Word-of-Mouth Marketing (A)
Matchstick Inc. (A) case introduces students to how brands are starting to put in place non-traditional advertising, such as word-of-mouth campaigns. The founder of Toronto-based Matchstick Inc. is working on a campaign for the Ketel One vodka brand. Ketel One, managed by Diageo, a global beverage firm, is trying to increase its awareness and sales in the Canadian market. Ketel One's brand manager has turned to Matchstick to generate awareness among its elusive target audience. -
Matchstick Inc.: Word-of-Mouth Marketing (B)
This is a supplement to Matchstick Inc. (A), product 9B10A019. The cases introduces students to how brands are starting to put in place non-traditional advertising, such as word-of-mouth campaigns. The founder of Toronto-based Matchstick Inc. is working on a campaign for the Ketel One vodka brand. Ketel One, managed by Diageo, a global beverage firm, is trying to increase its awareness and sales in the Canadian market. Ketel One's brand manager has turned to Matchstick to generate awareness among its elusive target audience. -
Better World Books
Better World Books, a young start-up, provides a socially-conscious alternative to Amazon, collecting and selling used books to keep them out of the wastestream, while providing a portion of their profits to support global literacy efforts. The case presents an emerging new business model: the for profit "B corporation" designed to combine profits and mission. Founder Xavier Helgesen struggles with how to price his products to capture the value of their social good, how to manage multiple channels of distribution, including selling direct to consumers, and managing negative public perceptions of the social impact of the business once the company turns profitable. -
Manchester Products: A Brand Transition Challenge, Spreadsheet Supplement
Spreadsheet Supplement for 4043 -
Mobile Banking for the Unbanked
The case describes in detail the workings of two mobile banking operators in Africa-WIZZIT in South Africa and M-PESA in Kenya. It explores the dimensions of strategy that make for success in the market for the unbanked. It raises questions regarding the portability of the model to other countries and settings. -
Matchstick Inc.: Word of Mouth Marketing (A)
Matchstick Inc. (A) case introduces students to how brands are starting to put in place non-traditional advertising, such as word-of-mouth campaigns. The founder of Toronto-based Matchstick Inc. is working on a campaign for the Ketel One vodka brand. Ketel One, managed by Diageo, a global beverage firm, is trying to increase its awareness and sales in the Canadian market. Ketel One's brand manager has turned to Matchstick to generate awareness among its elusive target audience. -
Matchstick Inc.: Word of Mouth Marketing (B)
This is a supplement to Matchstick Inc. (A), product 910A19. The cases introduces students to how brands are starting to put in place non-traditional advertising, such as word-of-mouth campaigns. The founder of Toronto-based Matchstick Inc. is working on a campaign for the Ketel One vodka brand. Ketel One, managed by Diageo, a global beverage firm, is trying to increase its awareness and sales in the Canadian market. Ketel One's brand manager has turned to Matchstick to generate awareness among its elusive target audience. -
Worried about Strategy Implementation? Don't overlook Marketing's Role
Many executives and scholars have argued that effective strategy implementation is at least as important as-if not more important than-developing a brilliant strategy. While there are several extant viewpoints regarding what is required for successful strategy implementation, perhaps the most influential perspective is that business success requires a fit between strategy and organizational architecture. Organizational architecture subsumes structural variables and capabilities. For the past 10 years, we have studied the performance implications of matching marketing's organizational architecture to four generic business strategies: Prospectors, Analyzers, Low-Cost Defenders, and Differentiated Defenders. Through six empirical studies we have identified best practice matches between these strategy types and: (1) marketing organization culture, (2) marketing strategy, (3) market strategy formation process, (4) market-focused strategic organizational behaviors, (5) marketing organization structure, and (6) marketing control systems. In this article, we bring together findings from each of these studies to provide a comprehensive overview of those marketing actions and policies that are associated with superior firm performance. -
Better Marketing to Developing Countries: Why and How
Managers have long understood the rationale for investing in new products. Now, however, they face an even more compelling need: to invest in targeting new markets, specifically those in less developed countries (LDCs). The argument presented in this article, for initiating or increasing marketing efforts in these nations, makes two related points. First, a healthy world economy requires consumers in developing nations-particularly China-to spend more, because trade imbalances between the United States and LDCs cannot be sustained. Second, in order to foster consumption in LDCs and to profit from it, marketing expertise in the developed world must refocus. Success will require devising, promoting, and distributing products that will overcome economic constraints in some markets, and in others will overcome an understandable reluctance to spend rather than save. We suggest that lessons may be gleaned from examples regarding recent efforts targeting LDCs by a pharmaceutical company (Pfizer) and a food supplement marketer (Procter & Gamble), as well as efforts pioneered in less developed countries themselves (including low-cost private schools and $2,500 automobiles). -
NetApp
NetApp had undertaken an award-winning overhaul and upgrading of its channel strategy design that accounted for 46 percent of North America sales in 2006. Nonetheless, NetApp senior management announced they expected to grow revenue another 30% in fiscal 2007 with half the growth coming from channel sales. To meet those goals, a number of issues that had developed around the channel sales program would need to be addressed. -
Doosan Infracore International: Portable Power Brand Transformation (A)
In December 2007, Korean conglomerate Doosan acquired a portfolio of industrial portable power equipment from U.S. company Ingersoll Rand. The acquisitions, the largest ever done by a Korean company outside of Korea, were part of Doosan's strategy to become a global, full-line manufacturer and marketer of construction equipment. With market-leading products under the company's parent brand name throughout Asia, Doosan's senior management expected to re-brand the acquired products using the Doosan name. Stefan Brosick, Director of Global Product Strategy and an Ingersoll Rand veteran, wondered whether Doosan would benefit from an immediate re-branding or if other branding strategies might be more effective. Many key questions needed to be answered before the December 2008 long-range plan presentation: What effect might changing the brand name, built over 135 years, have on these products' market positions? In addition to the name, what other branding elements carried equity in the construction market? How would end users and distributors react to brand changes? How could negative reactions be minimized? And if Brosick proposed a phased brand transformation plan, how could he best position this strategy to senior management? Learning objectives: The case illustrates the strategic role of branding in business-to-business markets, the pressures managers encounter when facing new corporate brand mandates, and analyses needed to formulate and evaluate alternative branding strategies. -
Red Lobster
Red Lobster, a 40-year-old chain of seafood restaurants, has just completed some market research revealing an opportunity to shift their target customer segment. The chain is in the final stages of a 10-year plan of rejuvenation under CEO Kim Lopdrup. When he took over as CEO in 2004 the chain was closing restaurants and suffering declining same store sales and declining customer satisfaction. But in 2010, even in a recession, the fortunes of the chain are improving. A recently commissioned market research study has revealed, unexpectedly, that 25% of Red Lobster's customers are "experientials," people coming for a "good evening out" rather than Red Lobster's traditional core customer who came because of a craving for seafood. Should this news cause Lopdrup to do anything differently? -
Sonance at a Turning Point (A)
In 1982, Sonance, a high-end audio company, invented a new product category: in-wall speakers. Two decades later, Sonance is at a turning point. In an attempt to benefit from the soaring housing market, company management shifted its focus from high-end custom-installation dealers to production housing developers and mass-market consumers. While growth accelerated, Sonance's relationship with the high-end audio dealers and its market share began to deteriorate. The new management team needs to determine the best strategy for the future.