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Presents a framework for determining prices for products and services in concert with the value provided to customers. Discusses methodologies for estimating customer value.

On April 23, 1985, the Coca-Cola Co. announced a decision that would rock the world. The old Coke formula would be taken off the market and replaced with a smoother, sweeter taste. The reaction of the American people was immediate and violent, causing three months of unrelenting protest against the loss of Coke. Was the marketing research at fault? The launch strategy? Or did Coke "just not get it"? This case explores marketing's most famous public disaster to reveal deep lessons about managing the brand. Includes color exhibits.

Considers the impact of the Internet on how market exchanges will take place. Discusses the role of shopping agents and alternatives to fixed prices such as negotiations, auctions, and exchanges.

Smithfield has become the number-one pork producer and processor in the world--given all the changes in the global agribusiness industry. How does the company develop its future strategy? A rewritten version of an earlier case.

How should America's second-largest pharmacy chain respond to the challenge from online drugstores? What threat does the web pose to bricks and mortar distribution of prescription drugs and the other items that make up 50% of a drugstore's sales? This case describes the purchase of Soma.com by CVS, and its integration into the corporation. A number of tactical questions remain to be answered, and then there is the larger strategic question--why do this at all? Teaching purpose: Issues in the integration of traditional retailing with online channels.

The Hunter Business Group (HBG), a direct marketing consulting firm specializing in reorganizing the sales and marketing efforts of industrial firms, uses integrated customer contact technologies (including field sales, telephone, and mail) as a means of "revolutionizing the face of business-to-business (b2b) direct marketing." The firm operates under the theory that a seller's communications provide genuine value to a customer, and that successful direct marketing programs result in solid relationships, high retention rates, and increased profitability for the customer. This case highlights, in detail, HBG's implementation of its approach for Star Oil's tire, battery, and accessory (TBA) business that has been facing declining market share and profitability in the face of ever-increasing competition.

The young entrepreneurs of Granny's Goodies, Inc., a corporate gift package specialist, face the challenge of finding ways to create consistent revenue streams and reduce sales costs. Outside of a few long-term contracts, the two founders have had to work very hard for each sale. Using extensive customer information that the firm has diligently collected over the previous two years, students need to develop a plan that covers market selection, product policy, and relationship management strategy for the firm.

Wal-Mart Stores, Inc. is one of the classic stores in American business. This case, which focuses on the emergence and development of the firm between the mid-1960s and 1990, allows the student to derive a relatively clear understanding of how Sam Walton et al. were able to grow the firm from a single location to one with 1,525 stores and $26 billion sales.

What are the prospects for grocery shopping on the Web? This case invites a comparison of seven business models, with particular emphasis on Webvan. Why does the investment community value Webvan at $7.8 billion after less than six months of operating experience, and Peapod, which has had seven years to learn the ropes, at $200 million? Explores online consumer-shopping behavior, the economics of online and offline grocery distribution, and the challenges of uniting a pure information business with a mundane package delivery service.

Net.Genesis is planning a strategy for the developing Internet market. In particular, it is creating the category of e-business intelligence and striving to be the brand leader in it.

In this case Roly International, the largest Disney apparel licensee in China, considers how to adapt their distribution channel strategy to the downturn in the Chinese market.

Goodyear is planning to launch an innovative new tire in a price sensitive and highly competitive category. The case deals with channel conflicts and management issues arising in mature product categories.

VerticalNet, a leading creator of targeted business-to-business vertical trade communities on the Internet, is trying to expand its model to facilitate e-commerce. Mark Walsh, the CEO of VerticalNet, has to decide how far he can extend the firm's business model without negatively affecting his current franchise.

Online broker DLJdirect faced two decisions during the fall of 1999: what customer segments should it target and how much should it spend on marketing? Unlike its competitors, who focused either on day traders or more mainstream investors, DLJdirect differentiated its service to meet the needs of self-directed, sophisticated, high net worth investors. But was DLJdirect forfeiting profits by not pursuing day traders? In the coming year, the ten largest online brokers were projected to spend $1.5 billion on marketing; E*Trade would lead the pack with a $300 million budget. DLJdirect was planning to spend $65 million on marketing in 1999, a 250% increase over the prior year. But would increased ad spending yield a positive long-term return as the marketing costs per new account doubled? And as advertising battles intensified, was a $65 million marketing budget big enough to allow DLJdirect to sustain its competitive position?

Companies facing attacks from competitors with copycat products often find they have little legal recourse. Two researchers suggest preemptive measures for protecting brand identity.

Products without precedent are a tough sell; consumers stick with the goods they understand. The key to marketing breakthrough products is to educate the public before making any sales pitches.

As more and more companies begin to see the world as their market, brand builders look with envy upon those businesses that appear to have created global brands--brands whose positioning, advertising strategy, personality, look, and feel are in most respects the same from one country to another. Attracted by such high-profile examples of success, these companies want to globalize their own brands. But that's a risky path to follow, according to David Aaker and Erich Joachimsthaler. Why? Because creating strong global brands takes global brand leadership. It can't be done simply by edict from on high. Specifically, companies must use organizational structures, processes, and cultures to allocate brand-building resources globally, to create global synergies, and to develop a global brand strategy that coordinates and leverages country brand strategies. Aaker and Joachimsthaler offer four prescriptions for companies seeking to achieve global brand leadership. First, companies must stimulate the sharing of insights and best practices across countries--a system in which "it won't work here" attitudes can be overcome. Second, companies should support a common global brand-planning process, one that is consistent across markets and products. Third, they should assign global managerial responsibility for brands in order to create cross-country synergies and to fight local bias. And fourth, they need to execute brilliant brand-building strategies. Before stampeding blindly toward global branding, companies need to think through the systems they have in place. Otherwise, any success they achieve is likely to be random--and that's a fail-safe recipe for mediocrity.

<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER -Regional Asia-Pacific Case Writing Competition</strong></p><br>Grey China is a subsidiary of Grey Advertising, based in New York. Established in 1917, Grey Advertising offered a variety of marketing and corporate services through its 377 branches in 88 countries, which employed 10,000 people. The case provides an overview of how an advertising agency functions, as well as illustrating timely advertising industry issues such as specialization and globalization. The CEO of Grey China must decide whether or not to launch an interactive services department to capitalize on the potential for a first mover advantage. Many marketing managers in Hong Kong and China were unaware of how interactive marketing could be integrated into their marketing communications programs. Grey China had the daunting task of building primary market demand for interactive marketing communications.

In preparation for the opening of a new canoe manufacturing shop, the owner has developed a business plan. He plans to manufacture 30 canoes per year out of a small rented shop. He has accumulated fixed and variable cost data, and now must decide what price he should charge for the canoes. He must also solidify his marketing strategy and set an advertising budget.