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ASIMCO Technologies: 2005
In April 2005, the chairman of ASIMCO Technologies, a company headquartered in China and supplying automotive components to both Chinese and global clients, was trying to decide on his company's reaction to the Chinese government's latest regulations on auto emissions. Guo-san (National Standards III) was to take effect on August 1, 2008. By that date, automakers would not be allowed to supply the Chinese market with non-Guo-san-compliant products. ASIMCO's major diesel engine customers had already sent requests for upgraded engine components to ASIMCO as well as other suppliers. While three technologies seemed to provide the Chinese market with a solution, divergent views existed among the management team as to where ASIMCO should focus to enhance the fuel systems that it supplied. The case can be used in an international marketing course (in sessions on product strategy in developing market or customer relations in industrial marketing). -
Wal-Mart Puerto Rico: Promoting Development Through a Public-Private Partnership
Sowing the Development of the Country (SDC) was a public-private partnership between Wal-Mart Puerto Rico (Wal-Mart PR), the island's Department of Agriculture as well as its Economic Development Bank (EDB), two NGOs Caborroje's Pro Salud y Ambiente (Caborroje's Pro Health and Environment) and ConectaRSE (a corporate social responsibility (CSR) promotion non-governmental organization(NGO)), and a group of local farmers. The objective of the project was to promote sustainable development on the island by encouraging farmers to become entrepreneurs by developing small agro-businesses. Wal-Mart acted as the primary buyer. The project faced many challenges, such as farmers' difficulties in meeting quality standards and delivery schedules, the lack of an existing vehicle through which to access funding from the EDB, and, most importantly, changes in the political party in power. Project partners had to develop a position from which to negotiate a new alliance with the incoming government administration. Since Wal-Mart was determined to guarantee the continuity and expansion of the SDC project, Wal-Mart had to step into the project champion role. -
GENICON: A Surgical Strike into Emerging Markets
A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy. -
Qingdao Sea View Garden Hotel
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Flare Fragrances Company, Inc: Analyzing Growth Opportunities (Brief Case)
Flare Fragrances, a manufacturer of perfumes for women, faces a growth challenge in a difficult economic environment. CEO Joely Patterson outlines two growth opportunities for her marketing staff to evaluate. One involves launching a new scent -- and possibly separating it from the trusty "umbrella brand" that comprises Flare's other scents; the other involves deepening Flare's penetration into the drugstore channel. In Patterson's view, the firm can pursue the first opportunity, the second, or both -- but it must do something . In helping Patterson to assess the opportunities, the marketing team must consider a wide range of factors, including brand management, consumer demographics, and positioning and pricing issues. The case requires students to complete a quantitative assignment as part of case analysis.Key topics include product line management, product positioning, and new product launch. -
Flare Fragrances Company, Inc.: Analyzing Growth Opportunities, Spreadsheet Supplement
Spreadsheet Supplement for Product #4550. -
GENICON: A Surgical Strike into Emerging Markets
A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy. -
Ambient Communication: How to Engage Consumers in Urban Touch-Points
This article examines the concept of ambient communication, its evolution, basic categories, and experiential marketing principles. It explores the variety of heterogeneous out-of-home communication tools, whose diversity and innovativeness have so far resulted in a lack of clear understanding and a failure to exploit their full marketing potential. By taking the urban landscape as the core feature of all conventional and unconventional outdoor communication tools, marketers can develop a comprehensive approach to improving ambient communication's effectiveness by focusing on its impact on consumer brand engagement. -
The Visualization Trap
Research shows that hindsight is far from 20/20-and foresight, in some situations, is even worse. -
How to Stop Customers from Fixating on Price
Surprisingly, your best tool for getting customers to see beyond price may be the price itself. New research finds that four pricing moves in particular can cause buyers to stop treating your offering as a commodity and instead consider its quality and relevance to their individual needs. You can change the basis of your pricing structure, as Goodyear did when it priced tires according to how many miles they would last. You can stimulate curiosity with willful overpricing, as Burt's Bees does with its natural beauty products. You can partition a price into component charges to make customers notice a key benefit-as IKEA does by charging separately for a table's top and legs, reminding people of its useful modularity. Or you can price the options you provide uniformly-as Apple does when it charges 99 cents for any track on iTunes-so that customers simply focus on their preferences. The power of each of these strategies is illuminated by controlled studies the authors conducted to understand the link between price and customer attention. -
Pedigree Growth Strategy (B)
Supplement for Product KEL497 -
Struggling to Make the Best Buy
As her boyfriend's birthday was fast approaching, Ashley struggled to make a decision on what mp3 player to buy him (Kade) as a gift. After failing to acquire her first desired choice, Ashley narrowed her selection down to two different mp3 models. Option A was to buy the Creative Zen Stone Plus, which was recommended by her boyfriend's best friend; a friend who knew Kade's personality and character very well. Ashley believed Kade's friend would be a good source to ask for recommendations, as he would have a better knowledge over Kade's interests and preferences. Option B was to buy the Rio Carbon 5, which was recommended by the salesman, who claimed to be an expert in mp3 players. She felt somewhat relieved hearing from an expert, as she did not know much about mp3 players. Given these two options, Ashley struggled to make a decision. Should she go with the suggestion offered by the friend? Or should she go with the suggestion offered by the expert? Should she go with her "interpersonal advisor" or the "expert advisor"? Ashley had to make the decision today, and she was running out of time. -
Marketing and Ethics
Marketing tactics such as pricing, promotion, placement, and product decisions all help business owners create a need for their products or services. What managers seldom realize, however, is that the marketing decisions they make primarily to increase sales and market share have a great impact on society at large and thus have significant ethical implications. These seven caselets, which cover a variety of topics (including "the article of the half-truth," "creative interview tactics," and "truthfully representing your company," among others), explore the ethical implications of decision making in the marketing arena. -
Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug
Metabical is a new weight loss drug from Cambridge Sciences Pharmaceuticals intended for moderately overweight individuals. In anticipation of final FDA approval, the senior director of marketing, Barbara Printup, prepares for the product launch and must make several critical decisions. First, she must select the optimal packaging size for the drug which typically requires a 12-week course of treatment. Next, she must determine the appropriate pricing. Since most insurance companies do not cover weight-loss medications, price has a direct impact on the sales forecast. To establish the initial demand forecast, Printup considers three approaches based on different assumptions. Her final recommendations must consider long term profitability and meet the company's desired return on investment.The case includes a quantitative assignment for students. -
Metabical: Pricing, Packaging, and Demand Forecasting Recommendations for a New Weight Loss Drug, Spreadsheet Supplement
Spreadsheet Supplement for 4183. -
Soren Chemical: Why is the New Swimming Pool Product Sinking? (Brief Case)
Topics include distribution channels, pricing, and new product marketing. Jen Moritz, the marketing manager for Soren Chemical Co. is struggling with the poor sales performance of Coracle, a new clarifier for residential swimming pools. The performance is puzzling because Coracle is chemically similar to another Soren product that has sold well for treatment of larger pools. Soren distributes the other product B2B through "chemical formulators" serving the commercial pools market -- but Soren uses wholesale distributors to sell Coracle. Given the slow start in establishing Coracle as a consumer brand, Moritz suspects that the go-to-market strategy may be flawed, but she is unsure where the problem lies; she examines channel strategy, distribution partners, the Coracle pricing scheme, the threat of competitors' offerings, and other potential problem sources. -
Soren Chemical: Why is the New Swimming Pool Product Sinking?, Spreadsheet Supplement
Spreadsheet Supplement for 4188 -
Target Corporation: Maintaining Relevance in the 21st Century Gaming Market
Target Corporation is concerned that the company might be left out of one of its most lucrative and attractive product categories, video games and game players, as these products increasingly migrate to digital distribution models. What steps should the company take to maintain its relevance and build sustainable competitive advantage as these trends play out? What are the implications for the company's multi-channel online and offline format portfolio going forward? -
Netflix Leading with Data: The Emergence of Data-Driven Video
By 2009 Netflix had all but trounced its traditional bricks-and-mortar competitors in the video rental industry. Since its founding in the late 1990s, the company had changed the face of the industry and threatened the existence of such entrenched giants as Blockbuster, in large part because of its easy-to-understand subscription model, policy of no late fees, and use of analytics to leverage customer data to provide a superior customer experience and grow its e-commerce media platform. Netflix's investment in data collection, IT systems, and advanced analytics such as proprietary data mining techniques and algorithms for customer and product matching played a crucial role in both its strategy and success. However, the explosive growth of the digital media market presents a serious challenge for Netflix's business going forward. How will its analytics, customer data, and customer interaction models play a role in the future of the digital media space? Will it be able to stand up to competition from more seasoned players in the digital market, such as Amazon and Apple? What position must Netflix take in order to successfully compete in this digital arena? -
Pedigree Growth Strategy (A)
Julie Smith, brand manager for dog food manufacturer Pedigree, has to determine how best to jump-start growth in the slumping business. The (A) case centers on the debate over which type of strategy to pursue, brand building versus in-store activity, while the (B) case focuses on the concept of cause marketing as a growth strategy.