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Marshalls International, Inc.
Warners Inc. is a world-leading packaged goods company that supplies a large number of packed goods to Marshalls International Inc., a leading mass merchandiser. The health and beauty category manager at Warners has been asked to examine its hair care category for opportunities to allow Marshalls to achieve leadership position in the category among its competitors. He must examine the leading retailers in the category and their marketing strategies, and compare them against Marshalls' strategy. -
VERITAS 1999 (A): Integrating Sales Forces
In October 1998, VERITAS and Seagate's Network Storage and Management Group, which both sold data storage management software, agreed to merge. In terms of employee size and revenues, it was nearly a merger of equals. Until regulatory approval for the merger was granted from the government under the Hart-Scott-Rodino (HSR) Act, the two companies could share only public information, initially limiting due diligence. The companies received HSR approval on December 4, 1998. It had been clear from public information that the two companies offered different products, sold through different channels of distribution, and captured two different customer segments of the market. After all, these differences were regarded as complements and the major justification behind the merger. However, what was not so apparent until HSR approval was the clash in sales force cultures. Paul Sallaberry, an executive at pre-merger VERITAS, assumed the role of executive vice-president of worldwide sales and marketing after the merger. Sallaberry needed to design a sales force integration plan that would take the company to billions of dollars in sales within the next few years without sacrificing any short-term sales momentum. To do so, he had to resolve the issues at hand: culture clashes, disparate compensation structures, overlapping territories, and redundant management positions. -
Top Box: Rediscovering Customer Satisfaction
In the early 1990s, Enterprise Rent-A-Car was experiencing dramatic growth, but future CEO Andy Taylor grew concerned that the quality and consistency of customer service might become a victim of that growth. Under his direction, the company took the bold step of tying field managers' career advancement directly to their operations' customer satisfaction performance, as measured by a monthly customer survey, the Enterprise Service Quality index (ESQi). Many managers were skeptical at first. But after ESQi was firmly in place, the company's average score for "completely satisfied" customers began to climb--and has been climbing ever since, along with market share. -
Grafica, Inc.: Winning the New Jersey Lottery (A)
Debra Taeschler, CEO of Grafica, is considering how to structure her agency's bid for the New Jersey Lottery account. The Lottery is facing declining sales in all major categories and plans to slash its 1999 marketing budget by 32%. Taeschler is debating whether to take a conservative approach and submit a bid that builds on the Lottery's current product-focused marketing strategy or take a riskier approach and advocate an entirely new umbrella branding campaign. -
Grafica, Inc.: Winning the New Jersey Lottery (B)
An abstract is not available for this product. -
Grafica, Inc.: Winning the New Jersey Lottery (C)
An abstract is not available for this product. -
Virgin Mobile USA: Pricing for the Very First Time
Dan Schulman, the CEO of Virgin Mobile USA, must develop a pricing strategy for a new wireless phone service targeted toward consumers in their teens and twenties, many of whom are believed to have poor credit quality and uneven usage patterns. Contrary to conventional industry wisdom, Schulman is convinced that he can build a profitable business based on this underrepresented target segment. The key is pricing. Schulman is currently debating three pricing options: 1) adopting a pricing structure that is roughly equivalent to the major carriers, 2) adopting a similar pricing structure, but with actual prices below the major carriers, or 3) coming up with a radically different pricing structure. With respect to the third option, Schulman is considering various alternatives, including a reliance on prepaid (as opposed to post-paid) plans and the total elimination of contracts. Includes color exhibits. -
Virgin Mobile USA: Pricing for the Very First Time, Spreadsheet
Spreadsheet supplement for case 504-028. -
Eyeblaster: Enabling the Next Generation of Online Advertising
Eyeblaster management has to decide on the best course of action to sustain its momentum from enabling online rich media advertising. Pressure from competitors is forcing the company to re-evaluate its previous marketing strategy that focused primarily on getting advertising agencies to advocate use of Eyeblaster's rich media ad management product. Alternatively, more Eyeblaster sales effort, product improvements, and pricing incentives could be diverted to Web site publishers or even to advertisers. CEO Gal Trifon has to decide whether to give the green light to entering two new markets. Such a move would require the company to position itself somewhat differently in the marketplace and offer different pricing schemes. Includes color exhibits. -
Alessi: Evolution of an Italian Design Factory (A)
Alessio Alessi, head of distribution at family-run Alessi S.p.A., is facing price and brand confusion among customers and is considering reorganizing Alessi's worldwide network of distributors. By describing the challenges facing Alessi, an internationally acclaimed design and manufacturing company of household objects for the table and kitchen, the case examines consumer marketing and distribution in general, as applied in the niche market of highly designed household goods for an Italian design factory. Includes color exhibits. -
Alessi: Evolution of an Italian Design Factory (B)
Since the 1970s, world-renowned architect and designer, Alessandro Mendini, has acted as adviser and counselor to Alessi, the Italian household goods design factory. By discussing Mendini's role as art director, the case introduces the artistic side of Alessi, where design ambitions need to be balanced with business considerations. Includes color exhibits. -
Alessi: Evolution of an Italian Design Factory (C)
Supplements the (A) case. -
Alessi: Evolution of an Italian Design Factory (D)
Supplements the (A) case. -
Blogger in Their Midst (HBR Case Study and Commentary)
It was five minutes before show time, and only 15 people had wandered into the conference room to hear Lancaster-Webb CEO Will Somerset introduce the company's latest line of surgical gloves. More important, sales prospect Samuel Taylor, medical director of the Houston Clinic, had failed to show. Will walked out of the ballroom to steady his nerves and noticed a spillover crowd down the hall. He made a "What's up?" gesture to Judy Chen, Lancaster-Webb's communications chief. She came over to him. "It's Glove Girl. You know, the blogger," Judy said, as if this explained anything. "I think she may have stolen your crowd." "Who is she?" Will asked. Glove Girl was a factory worker at Lancaster-Webb, whose always outspoken, often informative postings on her web log had developed quite a following. Will was new to the world of blogging, but he quickly learned about its power in a briefing with his staff. After Glove Girl had raved about Lancaster-Webb's older SteriTouch disposable gloves, orders had surged. More recently, though, Glove Girl had questioned the Houston Clinic's business practices, posting damaging information at her site about its rate of cesarean deliveries--to Sam Taylor's consternation. This fictional case study considers the question of whether a highly credible, but sometimes inaccurate and often indiscreet, online diarist is more of a liability than an asset to her employer. What, if anything, should Will do about Glove Girl? In R0309A and R0309Z, four commentators--David Weinberger, author of Small Pieces Loosely Joined; Pamela Samuelson, a professor of law and information management at the University of California, Berkeley; Ray Ozzie, CEO and chairman of Groove Networks; and Erin Motameni, vice-president of human resources at EMC--offer expert advice. -
Mind Your Pricing Cues
For most of the items they buy, consumers don't have an accurate sense of what the price should be. Research shows that consumers' knowledge of the market is so far from perfect that it hardly deserves to be called "knowledge" at all. Yet, people happily buy products every day. Is this because they don't care what kind of deal they're getting? No. Remarkably, it's because they rely on retailers to tell them whether they're getting a good price. In subtle and not-so-subtle ways, retailers send signals to customers, telling them whether a given price is relatively high or low. In this article, the authors review several common pricing cues retailers use--"sale" signs, prices that end in 9, signpost items, and price-matching guarantees. They also offer some surprising facts about how--and how well--those cues work. For instance, the authors' tests of several mail-order catalogs reveal that including the word "sale" beside a price can increase demand by more than 50%. The practice of using a 9 at the end of a price to denote a bargain is so common, you'd think customers would be numb to it. Yet, in a study the authors did involving a women's clothing catalog, they increased demand by a third just by changing the price of a dress from $34 to $39. Pricing cues are powerful tools for guiding customers' purchasing decisions, but they must be applied judiciously. Used inappropriately, the cues may breach customers' trust, reduce brand equity, and give rise to lawsuits. -
Blogger in Their Midst (HBR Case Study)
It was five minutes before show time, and only 15 people had wandered into the conference room to hear Lancaster-Webb CEO Will Somerset introduce the company's latest line of surgical gloves. More important, sales prospect Samuel Taylor, medical director of the Houston Clinic, had failed to show. Will walked out of the ballroom to steady his nerves and noticed a spillover crowd down the hall. He made a "What's up?" gesture to Judy Chen, Lancaster-Webb's communications chief. She came over to him. "It's Glove Girl. You know, the blogger," Judy said, as if this explained anything. "I think she may have stolen your crowd." "Who is she?" Will asked. Glove Girl was a factory worker at Lancaster-Webb, whose always outspoken, often informative postings on her web log had developed quite a following. Will was new to the world of blogging, but he quickly learned about its power in a briefing with his staff. After Glove Girl had raved about Lancaster-Webb's older SteriTouch disposable gloves, orders had surged. More recently, though, Glove Girl had questioned the Houston Clinic's business practices, posting damaging information at her site about its rate of cesarean deliveries--to Sam Taylor's consternation. This fictional case study considers the question of whether a highly credible, but sometimes inaccurate and often indiscreet, online diarist is more of a liability than an asset to her employer. What, if anything, should Will do about Glove Girl? In R0309A and R0309Z, four commentators--David Weinberger, author of Small Pieces Loosely Joined; Pamela Samuelson, a professor of law and information management at the University of California, Berkeley; Ray Ozzie, CEO and chairman of Groove Networks; and Erin Motameni, vice-president of human resources at EMC--offer expert advice. -
Blogger in Their Midst (Commentary for HBR Case Study)
It was five minutes before show time, and only 15 people had wandered into the conference room to hear Lancaster-Webb CEO Will Somerset introduce the company's latest line of surgical gloves. More important, sales prospect Samuel Taylor, medical director of the Houston Clinic, had failed to show. Will walked out of the ballroom to steady his nerves and noticed a spillover crowd down the hall. He made a "What's up?" gesture to Judy Chen, Lancaster-Webb's communications chief. She came over to him. "It's Glove Girl. You know, the blogger," Judy said, as if this explained anything. "I think she may have stolen your crowd." "Who is she?" Will asked. Glove Girl was a factory worker at Lancaster-Webb, whose always outspoken, often informative postings on her web log had developed quite a following. Will was new to the world of blogging, but he quickly learned about its power in a briefing with his staff. After Glove Girl had raved about Lancaster-Webb's older SteriTouch disposable gloves, orders had surged. More recently, though, Glove Girl had questioned the Houston Clinic's business practices, posting damaging information at her site about its rate of cesarean deliveries--to Sam Taylor's consternation. This fictional case study considers the question of whether a highly credible, but sometimes inaccurate and often indiscreet, online diarist is more of a liability than an asset to her employer. What, if anything, should Will do about Glove Girl? In R0309A and R0309Z, four commentators--David Weinberger, author of Small Pieces Loosely Joined; Pamela Samuelson, a professor of law and information management at the University of California, Berkeley; Ray Ozzie, CEO and chairman of Groove Networks; and Erin Motameni, vice-president of human resources at EMC--offer expert advice. -
McDonald's and the Hotel Industry
McDonald's, one of the world's strongest and most recognizable brands, intends to extend its world's best quick service restaurant experience brand into the hotel industry by launching a hotel in Illinois. An industry observer examines the hotel venture's positioning options and the McDonald's brand extension into a different product class. -
Worldwide Equipment (China) Ltd.: A Sales Performance Dilemma
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Regional Asia-Pacific Case Writing Competition</strong></p><br>Worldwide Equipment Ltd. is one of the world's largest manufacturers of heating, ventilating and air conditioning equipment. The Beijing regional sales manager has just heard that the sales performance of his office ranked the lowest among the sales offices in China. The sales Beijing force will not receive their year-end bonus unless the situation can be turned around quickly. He must determine whether the sales management process or a recent new hire on the sales force, whose hiring was strongly suggested by the manager's boss, are to blame for the poor sales performance and how to keep the situation from recurring. -
A Practical Guide to Conjoint Analysis
This note provides an overview of conjoint analysis. It shows how to interpret standard conjoint-analysis output and the uses of that output. It provides several examples of how output can be converted to managerially useful information.