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  • Ford Fiesta Movement: Using Social Media and Viral Marketing to Launch Ford's Global Car in the United States

    "The Ford Fiesta Movement was a social media campaign run by Ford in the U.S. during 2009 to generate buzz for the upcoming launch of the 2011 Fiesta sub-compact car. This case examines the campaign's performance and asks what marketers should do thereafter to convert interested consumers into buyers. "
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  • Natura: Exporting Brazilian Beauty

    This case describes the development and international expansion of Natura, a Brazilian cosmetics company. The company was founded in 1969, and developed products using environmentally sustainable practices, and that were distributed using a direct sales model. The company was highly successful in the Brazil, despite the challenging Brazilian economy. Natura had successfully entered the Mexican and French markets. In 2008, it considered entering the U.S. market. The case describes the company's growth, its principles of environmental and social responsibility, its culture and organization, and its international expansion to 2008. It describes the U.S. market, and the challenges and opportunities that Natura would face if it tried to expand into the U.S.
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  • Polar Challenge

    Polar Challenge was a company that offered an annual 320 nautical-mile race to the magnetic North Pole organized by Arctic experts. It had been successful in the United Kingdom, establishing marketing partnerships with the BBC, Sony, Fujitsu and others. Polar Challenge saw the United States market as untapped potential for both sponsors and racers. In 2008, with the centennial of polar exploration approaching in 2009, the company decided to offer the race to Americans. The director of marketing is given responsibility for establishing a presence in the United States, but he soon finds that U.S. companies and media outlets do not have the level of interest he expected. In addition, companies worldwide were cutting back on advertising spending in response to the global economic crisis. This case examines a number of issues focused on expansion into new markets and resource commitments to such endeavours. It can be used to discuss the importance of understanding the target market, targeting the unique needs of different customer segments, adapting product offerings to international markets and establishing realistic goals.
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  • Parle-G

    In 2009, Parle Products Pvt. Limited (Parle), a leading Indian biscuit manufacturer, had the distinction of producing the largest selling glucose biscuit brand by volume in the world, the Parle-G. Parle-G biscuits sold for approximately US$1 per kilogram and as very few processed and ready-to-eat foods were available at this price point, Parle-G was strongly associated with offering value for money (VFM). A looming problem in this brand category for Parle was that the input prices of two major raw materials for the Parle-G biscuits (which together accounted for 55 per cent of their input costs) had risen enough in the past 18 months to decrease margins from 15 per cent to less than 10 per cent. Pressure to restore margins led Parle to consider a price increase yet a previous attempt had caused dramatic reduction in sales. Parle subsequently addressed rising input costs by reducing the weight of the package, franchising production, reducing supply chain costs and reducing packaging costs. Parle could not ignore the deeply entrenched perception of VFM when devising both short- and long-term marketing plans to retain Parle-G's success in the marketplace. These plans needed to address segmentation, positioning and changing Indian demographics when considering a potential price increase for Parle-G biscuits.
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  • organicKidz: Marketing Strategy

    The founder of organicKidz is trying to create a plan to grow her start-up manufacturing firm. Calgary-based organicKidz is a manufacturer of stainless steel baby bottles and is sold in more than five countries. The founder's challenge is how to convey the superior benefits of her product and manage her retail channels given her limited resources. The setting of the case is at the September 2009 juvenile products tradeshow in the United States where organicKidz has to make a few key decisions about product promotion. All the key buyers from the retail organizations the founder is targeting will be at the show. In particular, the buyer from Costco, a large warehouse club chain, is interested in carrying her bottles and the founder wonders how she should respond.
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  • Emotion: What It Takes To Be a Product Leader

    Many companies have outstanding products in terms of performance, technology and features. And yet, surprisingly, sales don't take off. Readers of this article will learn how leading products and services captivate the marketplace by having more than just the functions and features that customers value. Leading products also inspire and deliver benefits through emotional fulfillment that customers enjoy and seek out.
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  • A Note on Direct Selling in Developing Economies

    Informal and formal direct selling play a particularly important role in developing countries characterized by markets with limited retail sectors. This note explores the practice of direct selling for the company, the sales person and the consumer, as well as the potential of direct selling as a means of reaching the base of the pyramid for both commercial and social purposes.
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  • United Breaks Guitars

    When social media propagate a complaint about poor customer service, an international media event ensues. How do viral videos spread and what can firms do about them? This case dissects an incident in which a disgruntled customer used YouTube and Twitter to spread a music video detailing United's mishandling of his $3,500 guitar and the company's subsequent refusal to compensate him. The song was called "United Breaks Guitars." Within one week it received 3 million views and mainstream news coverage followed, with CNN, The Wall Street Journal, BBC, the CBS Morning Show, and many other print and electronic outlets picking up on the story. The mechanics of viral propagation are uncovered and the limited opportunities for response by the firm are revealed. The case supports the notion of the Internet as an insurgent medium, better at attack than at defense.
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  • Rethinking Marketing

    Companies have never before had such powerful technologies for understanding and interacting with customers. Yet too many firms operate as if they're stuck in the 1960s, an era of mass marketing, mass media, and impersonal transactions. To compete in an aggressively interactive environment, companies must shift their focus from driving transactions to maximizing customer lifetime value. That means products and brands must be made subservient to customer relationships. And that means transforming the marketing department-traditionally focused on current sales-into a "customer department" by: replacing the CMO with a chief customer officer, cultivating customers rather than pushing products, adopting new performance metrics, and bringing under the marketing umbrella all customer-focused departments, including R&D and customer service.
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  • Why the Highest Price Isn't the Best Price

    This is an MIT Sloan Management Review article. Many suppliers serving business markets believe that practicing value-based pricing means finding out what the value of their offerings is relative to alternatives for their customers and then charging as high a price as they can. But the authors suggest that "charging what the market will bear" isn't always the right strategy. Instead, they argue that an organization should tailor its pricing to a more robust market strategy. "Unfortunately," the authors say, "when stripped of jargon and word-speak the ' 'market strategy' for many businesses is simply' 'Sell more!'" To counter this problem the authors suggest several questions that an organization should ask to improve its pricing strategy, including: What is the marketing strategy in this segment? What is the differential value that is transparent to target customers? What is the price of the next best alternative offering? What is the customer's expectation of a "fair" price? By asking these questions and others, an organization can choose a price point that provides the largest long-term value to the supplier. The benefits of this approach include improved relations with customers that often lead to longer-term, more profitable relationships. Using this approach, customers are also more willing to collaborate with suppliers, which can lead to shared data and improved products. According to the authors, suppliers that practice this kind of value-based pricing boost profits not only in the present, but they also set themselves up to profit over the long term.
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  • Slicing and Dicing Your Pricing

    Managers often focus on cost and ignore benefits to customers when pricing products. That's a big mistake, because not all components are valued equally.
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  • Product Emotions

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. In Chapter 1, Product Emotions (16 pages), the authors consider the relationship between the customer and a product. The authors differentiate between using emotions to encourage the purchase of a product versus developing a product experience that produces an emotion, with the latter as the desired goal. They also explain how branding plays a significant role in product emotions because it forms the basis for the relationship between product and company. The authors argue that an emotional exchange must be genuine and lasting to be effective and that the goal of creating product emotions must be integrated into the company's overall strategy and mission, based on extensive research and careful development.
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  • Profitability of Emotions

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. Chapter 2, Profitability of Emotions (8 pages), shows that creating product features that engender high emotion often costs little to implement, even for products that are strong revenue sources. The authors consider examples from McDonald's, Black and Decker, and Starbucks to illustrate how low-cost product features such as hamburger wrappers or a different brand name can evoke emotions. They also consider factors that are essential in identifying and developing the right product features, including workforce training and hiring appropriate staff.
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  • The High-Emotion Index: Stock Market Gains from Emotion

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. In Chapter 3, The High-Emotion Index: Stock Market Gains from Emotion (11 pages), the authors present their research on the profitability of product emotions. They describe the methodology used to determine if the financial gain from product emotion mitigates the costs of creating that emotion. Extending their model from individual products to the market capitalization of companies, they explain that higher-emotion stocks will outperform lower-emotion stocks, and they provide insight on what this means for managers.
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  • The Paths to Emotion

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. In Chapter 4, The Paths to Emotion (20 pages), the authors outline two approaches to creating product emotion, through associated emotions or supported emotions. Associated emotions are external to the product and communicated to the customer through messaging, usually advertising. Supported emotions derive from the use of the product or service itself. The authors say that supported emotions are used less frequently and offer more powerful opportunities for managers. They illustrate each path through examples, but focus mainly on associated emotions in the chapter. They consider their own studies and other scientific research that demonstrates how associated emotion can have a positive impact on customers' perceptions of product value.
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  • Supported Emotions: The Key to Today's Leading Products

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. Chapter 5, Supported Emotions: The Key to Today's Leading Products (15 pages), delves more deeply into developing an actual product that delivers a high-emotion experience. The authors analyze Apple to illustrate the benefits of successfully supported emotions throughout a product experience. They present research on product packaging to show how every product detail can be used to provide customer value, and they further explore the benefit of supported emotions in business-to-business marketing, services marketing, and in higher education. The authors conclude that successful high-emotion products meet customer needs via both emotion and functionality.
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  • Product Emotion Strategy

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. In Chapter 6, Product Emotion Strategy (20 pages), the authors present a three-step model for creating high-emotion products. The first step is to determine the emotions that the product can produce. The second step is to develop a strategy to produce those emotions. The third step is to take that strategy and make it a reality through the production process. The authors outline 16 core categories of positive emotions that motivate customers and show why a successful strategy requires a solid understanding of the customer. They also explain "eMap" as a tool for creating an emotion strategy in a five-step process, with real world examples from Navistar Corporation, DesignAdvance Systems, and RedZone Robotics.
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  • The Emotion of Form and Touchpoints to Create It

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. In Chapter 7, The Emotion of Form and Touchpoints to Create It (24 pages), the authors focus on using a product's visual form to evoke emotions. They emphasize the importance of creating a "visual brand language" to link the product form and product emotion strategy. They show how Harley Davidson and Buick used consistent visual brand languages to successfully create multiple products under one brand. They explain how an effective visual brand language can drive both product development and market differentiation, drawing from Whirlpool Corporation as an example. They explain a four-step process for turning strategy into touchpoints, or points of customer interaction: identification of attributes, integration into design, product testing, and production and evolution.
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  • Meeting Societal Needs: Positive Roles for Emotion

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. Chapter 8, Meeting Societal Needs: Positive Roles for Emotion (14 pages), explores opportunities for developing high-emotion products that address issues of sustainability, health for the aging, social action, and globalization. The authors consider efforts by companies that target an environmental problem, address a specific population group, take social action, or localize a product. They explain the benefits for companies to consider the emotions of societal issues in product and brand strategy.
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  • Emotion's Role in Technology Products

    Built to Love: Creating Products That Captivate Customers is a 10-chapter book published in 2010 by Berrett-Koehler Publishers, Inc. and written by Peter Boatwright, Associate Professor of Marketing at the Tepper School of Business, and Jonathan Cagan, the George Tallman and Florence Barrett Ladd Professor in the Department of Mechanical Engineering at Carnegie Mellon University. The authors explain how and why evoking an emotional connection with the customer enables certain products to enjoy market success. They explore key concepts around high-emotion products and present research that proves the value of emotion in product success. Drawing on numerous real-world examples, including an extended case study of Navistar, they outline a model for creating high-emotion products in three phases: identify emotional opportunity, develop a product strategy, and transfer strategy into product features. They provide practical guidance and insight for managers. In Chapter 9, Emotion's Role in Technology Products (10 pages), the authors consider how the value of emotion extends into markets typically regarded as non-emotional. They consider the potential for high-emotion products in the fields of nanotechnology, medical products and healthcare, space systems, and robotics. They explain why most technology and healthcare companies have not yet explored emotion in their product development and why it is increasingly important for this pattern to change. They also explore the power of aesthetically-pleasing designs and the emerging field of socially assistive robotics.
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