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In this hypothetical case, 21-Speed Gizmos, Inc., a manufacturer of electronic bicycle components for the serious cyclist, must decide what price to charge for a new product. Describes the product and includes cost and demand information available for making the pricing decision.

In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work?

Spreadsheet supplement for case 594001.

Supplements the (A) case.

A national sales manager is confronted by a second-tier distributor who has formed a coalition of several other second-tier distributors. This group is demanding the margins earned by first-tier distributors even though they cannot yet perform the first-tier functions. However, the group is located in a region where the first-tier distributors perform poorly.

After many years of R&D, Goodyear has developed the Aquatred, an innovative new tire. However, the tire industry has matured and evolved, raising questions concerning the Aquatred's ability to gain support from Goodyear's independent tire dealers. Students must use information on channel evolution and consumer behavior to make two decisions: whether to launch the Aquatred and whether to expand Goodyear's distribution network. Also explores issues involved in managing a complex distribution structure during a time of rapid change.

Harlequin Enterprises, the world's leading publisher of series romances, has been particularly successful in Poland. The case explores some of the challenges/opportunities of doing business in Eastern Europe and the marketing mix elements necessary for success.

George Patrick, president of Airtech Limited, is faced with both severe competition and under-utilization of the company's manufacturing capacity. He is considering a number of options, including a complete departure from the manufacturing business.

Millipore, the worldwide leader in separations technology, was in the process of launching two key new products: one a liquid chromatography/mass spectrometer and the other a virus separation membrane. The case documents the product development and commercialization activities undertaken by the company.

The European Bank for Reconstruction and Development, the first supranational financial institution of the post-Cold War era, is planning its debut in the international capital markets through a bond issuance of $500 million. The bank must determine its marketing strategy for the offering on two levels--positioning of the institution and of the bond offering itself. Integral to the marketing task is the selection of a lead manager, who will determine the marketing mix. The mix decisions involve determining product (currency, maturity, coupon), pricing (yield), promotion (road shows and media relations), and distribution (formation of the syndicate). In addition, the lead manager will need to select appropriate target markets (retail and institutional investors), along with overall positioning for the institution.

Following a store expansion in 1993, a small general merchandise retailer has not realized the expected growth in sales volume, and is now, in fact, losing money. He is evaluating his product offerings, service levels, hours, inventory, and pricing, and is trying to decide what he should do next.

McDonald's announces its decision to change from polystyrene "clamshells" for its sandwich packaging to a new paper wrap.

Considers a Pakistani company's decision to conduct a joint venture with a foreign multinational. In 1987, Milkpak Ltd. had successfully developed a market for sterilized milk and wanted to produce other value-added food products. The company was evaluating the best means for increasing its success in the Pakistani market and conducted negotiations with alternative joint venture partners.

Top management of Univisa, the North American subsidiary of the Mexican media conglomerate Televisa, meet to determine how to pursue opportunities to serve the Spanish-speaking population in North America. They must determine how to relate Univisa's market penetration strategy in North America to the broader global expansion strategy of Televisa.

Bajaj Auto Ltd., the world's second-largest manufacturer of two- and three-wheeler vehicles, is facing increasing competition in its domestic Indian market. The case evaluates appropriate marketing responses both in the Indian market and export markets.

MathSoft's VP of sales has doubled the size of the company's direct field sales force to support the launch of a new, high-end workstation software product priced at almost $9,000. However, sales of the new product are far below plan. At the same time, the VP of marketing is calling for increased magazine advertising to support sales of the company's $349 personal computer software product, which has been marketed through a combination of distributors, retailers, telephone sales, and direct mail. The president of this entrepreneurial company must determine the appropriate channel structure and communications programs for MathSoft's current product line and future growth. Illustrates the close linkages and trade-offs between industrial marketing channels and communications methods and traces the evolution of one company's hybrid marketing channels. Also introduces students to the use of advertising and direct marketing in selling complex, industrial products. For students who have had a quantitative modeling course, the case includes the output of a market response model developed from MathSoft's advertising and sales data.

Describes the president's decision regarding MathSoft's marketing channels and communications methods, and the company's sales results during the next five quarters. The (A) case market response model is also updated.

Reviews some basic issues to be considered in selecting a new location for a retail store.

Colgate-Palmolive Co. is considering how to position its new technological toothbrush, Precision. The case explores issues concerned with new product launches and requires students to do profitability analyses of different positioning alternatives.

Spreadsheet supplement for case 593-064.