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Tristan & America
In April 1997, Tristan & America, an apparel retail company based in Montreal, was considering the purchase of StaffWorks, an automated labor-scheduling system marketed by Campbell Software. The M.I.S. director of Tristan & America, was concerned about whether StaffWorks fit his company's need, how the software related to other information systems currently used by the company, and what constituted a good scheduling package. This case illustrates the use of decision support systems (particularly the scheduling system) and store traffic data in retail management. It also describes the considerations in scheduling retail store staff and the complexities of organizational buying in the retail context. -
Best Buy
Documents the evolution of Best Buy, an electronics retailer, from its founding in 1966 to its very successful "Concept 2" strategy in 1996, boosting its sales ($7.2 billion) past industry #1 Circuit City. Its CEO Richard Schulze offers a new vision (Concept 3) to address the company's changed competitive and consumer environment. Reduced profitability in 1996, however, calls for creative adaptation of Concept 3. -
Do Customer Loyalty Programs Really Work?
This is an MIT Sloan Management Review article. A company that initiates a customer loyalty program usually wants to retain existing customers, maintain sales levels and profits, increase the potential value of existing customers, and encourage customers to buy its other products as well. But, based on a review of behavioral loyalty research, the authors posit that the schemes do not fundamentally alter market structure and, instead, increase market expenditures without really creating any extra brand loyalty. Research shows that only about 10% of buyers for many types of frequently purchased consumer goods are 100% loyal to a particular brand over a one-year period. Consumers do not buy only one brand. For any loyalty program to be effective, say the authors, it must leverage the value of the product to the customer. Therefore, the program must have: (1) a direct or indirect effect, such as the General Motors rebate scheme that builds up savings toward a new car; (2) a perception of value, such as cash; and (3) timing--when rewards are available. The more delayed the reward, the less powerful. The authors suggest ways to design an effective program: ensure that it enhances the value proposition of the product or service, fully cost the program, maximize the buyer's motivation to purchase again, and consider the market conditions when planning. -
Exploring Brand-Person Relationships: Three Life Histories (Condensed)
The idea that "relationships" exist between consumers and products has implicitly occupied a central place in brand marketing thought and practice. Now as relational (one-on-one) marketing is said to be replacing transactional (mass) marketing as the dominant paradigm of the field, explicit theoretical development of these ideas becomes critical. This case presents detailed qualitative data on three women and their relationships with brands. -
PhD Project: The Marketing of Business School Faculty Diversity (A)
Examines the situation facing a group of representatives from the private, public, and nonprofit sectors attempting to increase the diversity of business school faculties. Focuses on the issues faced in mid-1994 by the KPMG Peat Marwick Foundation and its partners in their joint effort to generate more ethnic diversity in business school faculties and, ultimately, in business school classrooms and corporate workforces. Gives background on a prior series of meetings held to discuss what could be done to address the lack of minorities in business. The consensus in these meetings was that efforts should be made to increase the number of minority business school faculty by augmenting the supply of minority doctoral students in business. Discusses the various factors speculated to contribute to the lack of diversity in business school faculty. Gives background to marketing strategy development, and ends with the group trying to figure out what to do. The case decision is a meeting in September 1994 to analyze relevant information and develop a strategy to increase minority applicants to Ph.D. programs. -
Center for Women & Enterprise: Looking for a Director of Development with "The Scrappiness Factor"
Andrea Silbert is founder of the Center for Women & Enterprise, a nonprofit with a mission to empower women to become economically self-sufficient and prosperous through entrepreneurship. She must select a new senior sales executive, decide how to share responsibilities, and decide how to pick the best prospective funding sources. -
Your Brand's Best Strategy
Conventional wisdom holds that market share drives profitability. Certainly, in some industries, such as chemicals, paper, and steel, market share and profitability are inextricably linked. But when the authors studied the profitability of premium brands--brands that sell for 25% to 30% more than private-label brands--in 40 categories of consumer goods, they found that market share alone does not drive profitability. Instead, a brand's profitability is driven by both market share and the nature of the category, or product market, in which the brand competes. Developing the most profitable strategy for a premium brand, then, means reexamining market share targets in light of the brand's category. That is, managers must think about their brand strategy along two dimensions at the same time. First, is the category dominated by premium brands or by value brands? Second, is the brand's relative market share low or high? -
Leviton Manufacturing Co., Inc.: Universal Design Marketing Strategy
This case addresses the new opportunities and challenges in design and marketing to customers who are elderly or have disabilities. A product manager learns that Leviton's wall switches are favored over less expensive competitive products by homeowners with limited vision or dexterity. With the help of a federal center on disability research, she convinces her managers to develop a marketing program to promote these features to this large and growing market segment. Leviton's in-house marketing department prepares a promotional campaign modeled on a previous successful niche marketing program. The research center staff warns that treating elders and people with disabilities as a niche market will cause the program to fail. They recommend emphasis on the "universal design" appeal of Leviton's products to children as well as elders, able-bodied as well as disabled. The product manager must choose a direction for the program based on either the research center's experience with this new market or her own company's marketing expertise. -
Leviton Manufacturing Co., Inc.: Universal Design Marketing Strategy, Epilogue
Supplements the case. -
S1 Corp.
S1 is a fast growing subsidiary of the Samsung Group in South Korea that sells business security products. S1 has implemented a number of marketing initiatives that the company president would like to have evaluated. -
Delta Oil Outlets (B)
A survey of the oil change consumer has been completed for Delta Oil. The student must analyze the results and report conclusions and recommendations to Delta Oil management. The case presents the actual results of an extensive consumer survey. Delta Oil (B) introduces basic analytical techniques for market research: stratified and segmented sampling, analysis of frequency distributions and cross-tabulations. The importance of sampling methods and sample size can also be addressed. A Note on Reading a Crosstab Table (9A97K002) is also available. Delta Oil Outlets (A), which challenges students to design a research study for the company, should be taught, or at least reviewed, before addressing Delta Oil (B). -
Launching the BMW Z3 Roadster
James McDowell, vice president of marketing at BMW North America, Inc., must design Phase II communication strategies for the launch of the new BMW Z3 Roadster. The program follows an "out-of-the-box" prelaunch campaign centered on the placement of the product in the November 1996 James Bond hit movie, "GoldenEye", and including other "nontraditional" elements such as a product appearance on Jay Leno's Tonight Show, an offering of a Bond Edition Roadster in the Neiman Marcus Christmas Catalog, and large-scale public relations activities. McDowell must assess the effectiveness of the prelaunch activities and design marketing tactics that can sustain product excitement until product availability in March. Includes color exhibits. -
Launching the BMW Z3 Roadster, Spreadsheet Supplement
Spreadsheet supplement for case 597-002. -
Buy Low, Sell High: Creating and Extracting Customer Value by Enhancing Organizational Performance
Provides an integrated framework for creating customer value and managing the firm profitably. Focuses on the use of product/service line management and effective customer service to achieve customer satisfaction and high profitability. -
Oscar Mayer: Strategic Marketing Planning
The marketing director of Oscar Mayer faces a series of strategic marketing options regarding established and new products, including budget and capacity allocation decisions. -
Computron, Inc. (2006)
In July 1996, Mr. Thomas Zimmermann, European Manager of Computron, must select a price for a new computer for his largest customer. A rewritten version of an earlier case. -
Intuit: Quickbooks Upgrade
This case describes an innovative response-modeling project at INTUIT. The case can help students understand the basics of (and the issues surrounding) response modeling, an important tactic in data-base marketing. -
Coming Battle for Customer Information
Companies collect information about customers to target valuable prospects more effectively, tailor their offerings to individual needs, improve customer satisfaction, and identify opportunities for new products or services. But managers' efforts to capture such information may soon be thwarted. The authors believe that consumers are going to take ownership of information about themselves and start demanding value in exchange for it. As a result, negotiating with customers for information will become costly and complex. Consumers will be unlikely to bargain with vendors on their own, however. The authors anticipate that companies they call infomediaries will broker information to businesses on consumers' behalf. In essence, infomediaries will be the catalyst for people to start demanding value in exchange for information about themselves. And most other companies will need to rethink how they obtain information and what they do with it if they want to find new customers and serve them better. -
Building Brands Without Mass Media
Costs, market fragmentation, and new media channels that let customers bypass advertisements seem to be in league against the old ways of marketing. Relying on mass media campaigns to build strong brands may be a thing of the past. Several companies in Europe, making a virtue of necessity, have come up with alternative brand-building approaches and are blazing a trail in the post-mass-media age. In England, Nestle's Buitoni brand grew through programs that taught the English how to cook Italian food. The Body Shop garnered loyalty with its support of environmental and social causes. Cadbury funded a theme park tied to its history in the chocolate business. Haagen-Dazs opened posh ice-cream parlors and got itself featured by name on the menus of fine restaurants. Hugo Boss and Swatch backed athletic or cultural events that became associated with their brands. -
First Direct: Branchless Banking
First Direct has become the model of tele-banking worldwide, despite similar initiatives undertaken by large international banks. The case describes the history of First Direct and the various components of its operations, especially around the central issue of relationship marketing at a distance.