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Describes a situation faced by Mr. Ely Callaway, the 80-year-old founder, chairman, and CEO of Callaway Golf Co., in the fall of 1999. After a decade of stunning success with the marketing concept, Callaway suffered a significant loss and witnessed a steep decline in sales in 1998. Mr. Callaway had built a $800 million business by making a truly more satisfying product for the average golfer, making it pleasingly different from the competition and communicating the benefits to the consumer. The results in 1998 forced Mr. Callaway to reconsider the marketing program that had successfully supported the product until now.

Spreadsheet supplement for case 501-019.

A small, founder-centered business, increasingly facing competitive imitation of their core activities, is at a crossroads. Expansion opportunities for the winery include branching into retail, expanding its offerings of wines made to their specifications in Europe, and expanding their direct sales network of end customers to include non-Bonny Doon wines. In considering these options, the core competencies of Bonny Doon as well as the interests of its dynamic founder and leader, are critical.

Organization 2005, the latest initiative by Procter & Gamble (P&G) worldwide, was put in place to help double revenue growth between 2000 and 2005. The reorganization aligned the company so that planning and managing the lines of business were done on a global basis. The company's culture, its structure, and how work would be done were three key items that the changes would impact. The newly appointed president of P&G Canada reflected on the strategy behind the changes, the implications of the organizational change, and the message he wanted to deliver as he prepared to address the Canadian employees.

Procter & Gamble reorganized its operations and created Global Business Units with Market Development Organizations (MDO) to augment the brand strategy work. This reorganization supported changes in culture that included reasonable risk taking. The marketing director of Procter & Gamble Canada was evaluating the potential success of launching a new product, Febreze, by using volume analysis resources available to her. The results indicated that Febreze would be a relatively small business opportunity, but the model could not take into account the various new MDO marketing tools that were not yet available. To justify the cost of launching the product, revenues would have to be significantly more than the volume model predicted. While trying to adjust to the new culture, the marketing director had to evaluate the risks associated with launching the product not knowing if the new tools would generate the additional volumes needed and the risk of losing the competitive edge if she postponed the launch.

Consumer sales promotions are used to acquaint new users with a brand, to load existing users and to maintain interest in the brand on the part of the salesforce, the retailers and the consumers. Four promotions are presented in this exercise - two which were considered successful by the manufacturer and two which were not. These promotions provide the background information necessary for students to: consider the characteristics of each promotion and the surrounding circumstances; evaluate and determine which promotions were successful; and develop a rationale of which factors are important for successful promotions.

The National Hockey League (NHL) was battling within a competitive market to increase the exposure of hockey throughout the United States. Many new franchises had been established and the challenge was to create a fan base to support both the franchises and the league as a whole. As a result, many new initiatives were being examined to educate and excite the American public. The director of new business development for National Hockey League Enterprises, the marketing arm of the NHL, had to evaluate a proposal to establish an IMAX/Ridefilm attraction at NHL SKATE rinks and determine if this approach would increase the exposure of hockey throughout the United States. To prepare his recommendations for the board of directors, he needed to qualitatively evaluate the prospects of the NHL/Ridefilm proposal and perform a quantitative analysis.

The young, aggressive national sales manager of Consumer Solutions, a multinational consumer goods company, faces the challenges of managing relationships with his boss and others, as he works through a sales presentation for a large potential client. After a client presentation at which one of his own colleagues expressed negativity, he was reflecting on how to proceed. The issues involved include interpersonal conflicts, selling a project internally, team interactions, and closing a deal.

The classic brand manager dealt with simple brand structures in part because he or she was faced with a relatively simple environment and simple business strategies. Today the situation is far different. Brand managers now face market fragmentation, channel dynamics, global realities, and business environments that have drastically changed their task. In addition, there is pressure to leverage brand assets because of the prohibitive cost of creating new brands. This set of challenges has created a new discipline called "brand architecture." A coherent brand architecture can lead to impact, clarity, synergy, and leverage rather than market weakness, confusion, waste, and missed opportunities. Brand architecture is an organizing structure of the brand portfolio that specifies brand roles and the nature of relationships between brands. This article introduces a powerful brand architecture tool, the "brand relationship spectrum." It is intended to help brand architecture strategists employ insight and subtlety to subbrands, endorsed brands, and their alternatives. Subbrands and endorsed brands can play a key role in creating a coherent and effective brand architecture.

In the rush to build Internet businesses, many executives mistakenly concentrate all their attention on attracting customers rather than retaining them. But chief executives at the cutting edge of e-commerce--from eBay's Meg Whitman to Vanguard's Jack Brennan--know that customer loyalty is an economic necessity: acquiring customers on the Internet is very expensive, and unless customers stick around and make lots of repeat purchases, profits will remain elusive. For the past two years, the authors have studied e-loyalty. Contrary to the popular perception that on-line customers are fickle by nature, they found that most of today's on-line consumers exhibit a clear proclivity toward loyalty, and Web technologies, if used correctly, reinforce that inherent loyalty. In this article, the authors explain the enormous advantages of retaining on-line buyers. They also describe what Grainger, Dell, America Online, and other Internet leaders are doing to gain their customers' trust and earn their loyalty. By encouraging repeat purchases among a core of profitable customers, companies can initiate a spiral of economic advantages. This loyalty effect enables them to compensate their employees more generously, provide investors with superior cash flows, and reinvest more aggressively to further enhance the value delivered to customers.

<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER -Regional Asia-Pacific Case Writing Competition</strong></p><br>Looks.com is an Asian e-commerce site for brand name cosmetics, fragrances, skin care products and fashions. It has been well received among investors; the site had a viable business strategy and a solid first-mover advantage. The founder and managing director is ready to launch looks.com within weeks to capitalize on the upcoming Christmas shopping rush and the intense dot.com fever that caught Hong Kong in late 1999. The biggest challenge the company now faces is persuading brand name cosmetic manufacturers to list their products for sale on the site. Look.com's managing director and buyer are finding that manufacturers' concerns about cannibalizing their existing sales channels and antagonizing their licensed distributors are dampening their enthusiasm for dealing with looks.com. The challenge to the company is to develop strategies to convince manufacturers that using this alternative distribution channel can increase their revenue and the profile of their brands in Asia, with little impact on their current distribution network. This case has universal appeal, given that similar concerns have developed around the world as the Internet becomes an increasingly viable alternative distribution channel.

The economy segment in the market for mayonnaise in Venezuela has become extremely competitive. Mavesa, Venezuela's largest and most professional consumer goods firm, finds its pioneer Nelly brand under assault from large players such as Kraft, and small nimble regional players such as Albeca. In this competitive scenario, Nelly's managers decide to cut price on the brand. The managers must analyze the implications of cutting price, including both the profitability impact of a pricing decision, as well as strategic competitive considerations.

In a relatively short period, DuPont innovates stain-proof carpeting, filling its nylon-fiber capacity and increasing profits significantly. MBA and undergraduate students consider how DuPont should approach the fact that competitors quickly introduce their own enhanced stain-resistant products. What actions should it take to keep its hard-won leadership of the carpet-fiber industry. STAINMASTER is the certification given by DuPont to carpets made with the company's own premium nylon and treated with a chemical to repel liquid stains and dry soil. The carpets must also meet minimum construction standards in terms of face weights, yarn twist, and other quality considerations. The introduction of STAINMASTER is accompanied by heavy advertising and trade promotion to establish the brand name among consumers and retailers.

Michael Stoner finds himself called upon to reposition a once venerable and highly profitable brand of Scotch whisky. He must find a cultural trend.

Brand equity is one of a firm's most important assets. Unfortunately, such intangible assets have received little attention from the financial and accounting communities. This view may now be changing. The focus of the research is on valuating the effect of advertising on brand equity, not only for external reporting but also for internal management and control. Pros and cons of various brand valuation models are examined. Brand asset measurements should address the success of the firm in creating a product, providing marketing support, retaining customers, building brand value, and reducing return volatility. The authors use a calculation called "advertising turnover" to describe the relationship between advertising expenditures and brand value. It indicates how efficiently the firm converts advertising dollars into brand value, and is similar to methods used in financial analysis for determining the productivity of capital assets or receivables. Plotting this calculation over time can distinguish between high-efficiency brand enhancers, low-efficiency brand enhancers, unknown brand future, and brand deterioration. Brand ROI can be broken down into "brand turnover" and "return on sales." Kellogg's brand performance is used as an example of applying the model to evaluate the ability of advertising and market share to enhance brand value.

Supplements the (A) case.

Most retailers on the Web spend more to acquire customers than they will ever get back in revenue from them. Many think that sky-high spending on marketing is necessary to stake out their share of Internet space. But is it really? How do retailers know how much to pay? Consider CDnow, which has developed a multifaceted customer-acquisition strategy that reflects a clear understanding of the economics of an on-line business. At the heart of its strategy is affiliate marketing, a concept the company pioneered. Under its BuyWeb program, anyone can put a link to CDnow on his or her Web site, and if a customer uses that link to arrive at CDnow and make a purchase, the referring site owner gets a percentage of the sale. CDnow pays no money if no sale is made, which makes the marketing program completely efficient. But CDnow didn't stop there. Being a Web store, it had complete data on the number of visitors to its site and what they bought, which it used to work out the lifetime value of an average customer. CDnow used that figure to determine how much to wager on the expensive and risky world of traditional advertising to reach a wider audience that wasn't already on-line. CDnow's experience, still a work in progress, contradicts John Wanamaker's oft-quoted lament: "I know half the money I spend on advertising is wasted, but I can never find out which half." As the CDnow example demonstrates, there is a way to find out which half really works.

Most companies have only been able to sell goods in one way. Now, with the Internet, a single site can offer many different transaction methods.

Computer Power Group (CPG), an Australian-based consulting, education, and staffing placement firm in the IT industry, is contemplating a brand architecture capable of structuring its eight branded business units. CEO Peter James is particularly curious about whether a corporate brand is needed to unify the businesses. Extensive consumer research is conducted to inform the branding initiative, providing insight into the meanings of each of the sub-brands in key stakeholders' minds. The architecture solution must consider not only brand meanings and associations, but market performance and brand stewardship concerns as well. A pending merger with U.S.-based Interim Technology further complicates the task.

Can two successful authors build a scalable consulting practice based on their unique view of customer relationship management (CRM)? Should they emphasize strategy or execution? The case describes how Peppers and Rogers grew from two people earning speaker fees to a 160-person publishing, consulting, and Internet technology promotion company. Now they want to grow faster and take advantage of the IPO capital market that has enabled the birth of competitors like Scient, Viant, and Zefer in the market for e-commerce and dot.com consulting.