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Fueling Sales at EuroPet
EuroPet S.A. was a multinational company operating gas stations in many European countries. There was a growing propensity for supermarkets to attach gas stations to their retail operations, which was developing into a major threat to EuroPet. As a result, in the mid-1990s, the company began to develop and brand its own convenience stores co-located with its gas stations. However, the company was spending much more on advertising the convenience stores than its competitors did. Management now had to decide if the increase in sales attributed to advertising efforts justified the advertising spend by analyzing the market data from one large metropolitan area: Marseille, France. -
Fueling Sales at EuroPet Data Spreadsheet, Spreadsheet Supplement
EuroPet S.A. was a multinational company operating gas stations in many European countries. There was a growing propensity for supermarkets to attach gas stations to their retail operations, which was developing into a major threat to EuroPet. As a result, in the mid-1990s, the company began to develop and brand its own convenience stores co-located with its gas stations. However, the company was spending much more on advertising the convenience stores than its competitors did. Management now had to decide if the increase in sales attributed to advertising efforts justified the advertising spend by analyzing the market data from one large metropolitan area: Marseille, France. -
Philips: Sense and Simplicity
The case describes the challenge faced by the CEO and newly hired Chief Marketing Officer to reposition the Philips brand and drive the organizational changes to support the new vision. Central to the version was the Sense and Simplicity marketing campaign, which came to embody a whole new way of doing business at Philips. The primary target of the Sense and Simplicity campaign was customers aged 35-55. Philips was not thought of as a cool and attractive brand by Generation Y consumers. Philips must rewire the Sense and Simplicity campaign for the Generation Y market. -
Xanadu on Broadway
Can one of Hollywood's biggest flops magically turn into a Broadway hit? Xanadu, an adaptation of a 1980 Olivia Newton-John roller-disco film described by one critic as "the epic failure to end all epic failures," opened on Broadway in July 2007. Producer Rob Ahrens, the driving power behind the resurrection, anxiously awaited the verdict of audience members. Was the choice to produce Xanadu the Broadway musical the right choice? -
Queensland Sugar Limited
Until industry deregulation in 2006, Queensland Sugar ran Australia's single desk marketing system for raw sugar exports. Since deregulation, eight of the ten Queensland sugar millers have elected to continue collective marketing through QSL. However, several millers are threatening to leave the group and market on their own. Their primary objection is to QSL's board structure, which is currently divided equally between millers, growers, and independent directors. The case describes the evolution of Australia's sugar industry; the differing interests of growers, millers, and customers; and the impact of changes in global supply (e.g., the rise of Brazil as a major sugarcane and sugar producer) and demand (e.g., the increased use of sugarcane for ethanol production). -
Alltech...naturally
Entrepreneur Pearse Lyons had built Alltech into the fastest growing company in the global animal health industry through innovative technology, creative marketing, and strong branding. Sel-Plex, a proprietary Alltech product, had shown important health benefits for animals and humans. Although numerous branded selenium-enriched products were being sold in supermarkets around the world, the company's current business model (selling Sel-Plex as an ingredient) did not allow it to participate in the value created. Lyons and Alltech's directors must choose between three different options for Sel-Plex, which include continuing with the current strategy, partnering with animal producers, or marketing Sel-Plex directly to consumers in tablet form. -
MINI USA: Finding a New Advertising Agency (A)
Selling an intangible like advertising services is a difficult task. The first step is to understand how brands buy these services. What are they looking for? What do they need to learn? How do they go about assessing things like creativity, trust, and loyalty? This set of cases puts the students into the roles of the seller (an advertising agency named Butler, Shine, Stern and partners) and the buyer (MINI USA) and asks them to develop a sales strategy for advertising services. As outlined in the (B) case, the agency developed an intriguing and original approach to assessing the intangibles and students are asked to react to it from a sales perspective and to attempt to generalize the approach to other sales domains. -
MINI USA: Finding a New Advertising Agency (B)
Selling an intangible like advertising services is a difficult task. The first step is to understand how brands buy these services. What are they looking for? What do they need to learn? How do they go about assessing things like creativity, trust, and loyalty? This set of cases puts the students into the roles of the seller (an advertising agency named Butler, Shine, Stern and partners) and the buyer (MINI USA) and asks them to develop a sales strategy and a buying strategy for advertising services. As outlined in the (B) case, the agency developed an intriguing and original approach to assessing the intangibles and students are asked to react to it from a sales perspective and to attempt to generalize the approach to other sales domains. -
Butler, Shine, Stern & Partners
Selling an intangible like advertising services is a difficult task. The first step is to understand how brands buy these services. What are they looking for? What do they need to learn? How do they go about assessing things like creativity, trust, and loyalty? This set of cases puts the students into the roles of the seller (an advertising agency named Butler, Shine, Stern & Partners) and the buyer (MINI USA) and asks them to develop a sales strategy and a buying strategy for advertising services. -
Vegpro Group: Growing in Harmony
Vegpro, a horticulture company, is Kenya's largest exporter of fresh vegetables and flowers to top supermarkets in the U.K. and Europe. In 2007, Vegpro's business is threatened by growing consumer concern about the environmental impact of food production and transport, including "food miles". The case describes the company's growth, which includes the use of owned land and outgrowers for production, the addition of value-added processing to obtain premium prices, and the introduction of global certification to ensure food safety and meet retailer and consumer requirements. The case also discusses the potential impact of increased consumer awareness of ethical sourcing and introduces the potential trade off between local production and economic development. -
Real Madrid Club de Futbol in 2007: Beyond the Galacticos
On June 17, 2007, Real Madrid sealed its first Spanish league championship under new president Ramon Calderon, ending an unprecedented title drought. Real Madrid had seen a significant growth in revenues and now was the world's biggest soccer club and among the largest and most profitable sports franchises globally. Although Calderon signed several new stars in his first year, he also rejuvenated the team by acquiring the promising youngsters, thereby moving away from what had been dubbed the "Galacticos Strategy" introduced by former president Florentino Perez. Would the move away form this strategy bring continued successes on the field? And how would it impact real Madrid's business performance? -
Customers' Revenge (HBR Case Study)
Venerable Detroit automaker Atida Motors has a new call center in Bangalore that the company hopes will raise its reputation for customer service. But it doesn't appear to be doing so yet. Complaints about the Andromeda XL--the hip new model Atida hopes will capture the imagination of Wall Street--are flooding the call center. Call backlogs are building, and letters of complaint are piling up. One loyal Atida customer is so upset about getting the brush-off that he's not only talking to a lawyer but threatening to go on YouTube and take his case to the court of public opinion. In the Internet age, does Atida need a new way to deal with unhappy customers? Tom Farmer, the creator of the unintentionally viral PowerPoint presentation "Yours Is a Very Bad Hotel," says that Atida needs to stop defining customer service solely as a response to bad news and nip problems in the bud by making online dialogue intrinsic to the brand experience. Nate Bennett, of Georgia Tech, and Chris Martin, of Centenary College, observe that Atida has violated its customers' sense of fairness within three dimensions--distributive, procedural, and interactional--thus increasing their desire for revenge. Lexus Vice President for Customer Service Nancy Fein thinks Atida isn't even in the ballpark when it comes to world-class customer service. She offers as an example a Lexus rep who drove 80 miles to deliver $1,000 to a stranded Lexus owner whose purse had been stolen. Barak Libai, of Tel Aviv University and MIT's Sloan School, suggests that Atida invest in a CRM system so that it can determine which customers have enough purchasing and referral value to be given the red carpet treatment and which should be gently let go. -
Customers' Revenge (Commentary for HBR Case Study)
Venerable Detroit automaker Atida Motors has a new call center in Bangalore that the company hopes will raise its reputation for customer service. But it doesn't appear to be doing so yet. Complaints about the Andromeda XL--the hip new model Atida hopes will capture the imagination of Wall Street--are flooding the call center. Call backlogs are building, and letters of complaint are piling up. One loyal Atida customer is so upset about getting the brush-off that he's not only talking to a lawyer but threatening to go on YouTube and take his case to the court of public opinion. In the Internet age, does Atida need a new way to deal with unhappy customers? Tom Farmer, the creator of the unintentionally viral PowerPoint presentation "Yours Is a Very Bad Hotel," says that Atida needs to stop defining customer service solely as a response to bad news and nip problems in the bud by making online dialogue intrinsic to the brand experience. Nate Bennett, of Georgia Tech, and Chris Martin, of Centenary College, observe that Atida has violated its customers' sense of fairness within three dimensions--distributive, procedural, and interactional--thus increasing their desire for revenge. Lexus Vice President for Customer Service Nancy Fein thinks Atida isn't even in the ballpark when it comes to world-class customer service. She offers as an example a Lexus rep who drove 80 miles to deliver $1,000 to a stranded Lexus owner whose purse had been stolen. Barak Libai, of Tel Aviv University and MIT's Sloan School, suggests that Atida invest in a CRM system so that it can determine which customers have enough purchasing and referral value to be given the red carpet treatment and which should be gently let go. -
Customers' Revenge (HBR Case Study and Commentary)
Venerable Detroit automaker Atida Motors has a new call center in Bangalore that the company hopes will raise its reputation for customer service. But it doesn't appear to be doing so yet. Complaints about the Andromeda XL--the hip new model Atida hopes will capture the imagination of Wall Street--are flooding the call center. Call backlogs are building, and letters of complaint are piling up. One loyal Atida customer is so upset about getting the brush-off that he's not only talking to a lawyer but threatening to go on YouTube and take his case to the court of public opinion. In the Internet age, does Atida need a new way to deal with unhappy customers? Tom Farmer, the creator of the unintentionally viral PowerPoint presentation "Yours Is a Very Bad Hotel," says that Atida needs to stop defining customer service solely as a response to bad news and nip problems in the bud by making online dialogue intrinsic to the brand experience. Nate Bennett, of Georgia Tech, and Chris Martin, of Centenary College, observe that Atida has violated its customers' sense of fairness within three dimensions--distributive, procedural, and interactional--thus increasing their desire for revenge. Lexus Vice President for Customer Service Nancy Fein thinks Atida isn't even in the ballpark when it comes to world-class customer service. She offers as an example a Lexus rep who drove 80 miles to deliver $1,000 to a stranded Lexus owner whose purse had been stolen. Barak Libai, of Tel Aviv University and MIT's Sloan School, suggests that Atida invest in a CRM system so that it can determine which customers have enough purchasing and referral value to be given the red carpet treatment and which should be gently let go. -
Northwestern Mutual's Ed Zore on Staying Relevant to Customers
Ed Zore is the CEO of Northwestern Mutual, a highly admired 150-year-old insurer. Relevance, not innovation, matters most to customers, he says, and should matter most to companies as well. -
LightFull Foods
The protagonists are Lara Jackle and Lynn Graham, CEO and VP Marketing for LifghtFull Foods respectively. LightFull is a beverage start-up based in Northern California that is struggling with a major strategic decision which centers around its use and possible replacement of an ingredient called Stevia (an all natural, zero calorie plant derivative which is often used as a sweetener by consumers and companies) with an artificial sweetener. Jackle and Graham like Stevia for its inherent qualities that play to the company's and product's strengths: all-natural ingredients, low calorie, nutritious and tasty snack-replacement satisfaction. Some board members argue, however, that replacing Stevia with an artificial sweetener will not negatively impact the brand, and may in fact appeal to a larger audience in more mainstream channels (e.g., WalMart vs. Whole Foods, the latter of which does not allow artificially sweetened food items on its shelves). While approved by the FDA for use as a dietary supplement, Stevia has not yet been approved as a sugar substitute, food additive or sweetener. In fact, companies are overtly barred from using Stevia as anything but a dietary supplement and inclusion of the ingredient necessitates that the company classify the entire product (in this case a beverage) as a nutritional supplement, not a food. -
Parfums Cacharel de L'Oréal 1997-2007: Decoding and Revitalizing a Classic Brand
"Parfums Cacharel, a division of L'Oréal, used to have a dominating position on the European market with both the number one and number two best-selling fragrances: Anaïs Anaïs and Loulou. At the time of the case however, sales were declining at a rate of 15 % per year and Cacharel was a fragance brand in need of a major revitalization. The task assigned to Dimitri Katsachnias, the new general manager of Cacharel, is to turn around the business. But before doing that, he needs to understand the brand. 1. Brand identity decoding • What is Cacharel's brand identity? What are its conceptual and tangible components? Can it be summarized in less than five words? • Does the Cacharel umbrella brand itself have an identity beyond that of its sub-brands? Which sub-brands are mostly responsible for creating Cacharel's identity? 2. Brand revitalization • What is the root source of Cacharel's maturity crisis and how can understanding the brand's identity help? • Should Kataschnias bring the Cacharel brand closer to where the market is now? Should he focus on meeting the desires of today's consumers or in remaining faithful to the brand's original identity Students can watch the television commercials mentioned in the case on the dedicated case website: http://cases.insead.edu/cacharel/home. On this website, instructors can also access video interviews with the managers mentioned in the case, more recent television commercials, and PowerPoint presentations to be used in the classroom or as handouts using the login and password mentioned in the teaching note." -
Brooke Correll and Clos Du Val: Adventures in Napa Valley (C)
This three-part case series traces the fortunes of a California winery. In June 2001, Brooke Correll, a former executive at MTV, Ziff-Davis Media, and WineShopper.com, joined the privately owned Clos Du Val Wine Company, in Napa, California, as director of Marketing. Cofounded by an expert winemaker with ties to the famous Château Lafite Rothschild, Clos Du Val had seen its glory days, with high ratings accompanied by robust sales. During the 1990s, however, sales had begun to lag. As the winery's first marketing professional, Correll must chart a new course for the winery to revive the once-hot brand and reverse flagging sales. See also the A and B cases. -
Russian Standard
In September 2006, Russian billionaire Roustam Tariko, founder and owner of Russian Standard, needed to develop a strategy for introducing Russia's most popular brand of premium vodka (RSO) to American consumers. In the past year, he had introduced Imperia, the firm's flagship ultra-premium vodka, in the U.S. market; lined up American importation and distribution partners for Russian Standard; and had worked hard to build excitement for the brand. Beyond establishing RSO's stylishness, Tariko needed to carve out a space for the brand in the crowded American market. Imperia's marketing had emphasized two attributes, superior quality and Russian-ness. In articulating RSO's advertising strategy and tagline, Tariko would need to decide once and for all which attribute to emphasize. He would also need to decide how to articulate this attribute so as to develop discrete identities for each of the two brands. Would Americans respond better to a claim of authenticity, or to a claim of unparalleled purity? And which were RSO and Imperia best equipped to exploit? -
Air Miles Canada: Rebranding the Air Miles Rewards Program
Air Miles, the largest third party loyalty program in Canada, has more than nine million subscribers. Competition in the loyalty card market is heating up with the entry of Aeroplan and myriad proprietary loyalty programs launched by retailers and other brands, and Air Miles seeks to tighten its relationship with customers. Paradoxically, for a data-driven company focused on influencing consumers individually, Air Miles opts to develop and launch a mass advertising campaign to reconnect with consumers, and just as importantly, to re-energize internally.