Professional Documents
Culture Documents
Abstract
Addresses a new product launch into the emerging interactive
television industry and the role of market research in shaping the
strategic marketing plan. Illustrates the challenges of measuring and
understanding probable consumer response and adoption behaviors
given a technically innovative product offering. The competitive
environment is dynamic, with competitors also poised to launch. But
this company hopes to retain its first-mover advantage, which also
gives it the burden of educating the right consumers quickly and
driving rapid adoption.
Subjects Covered: Brands; Competitive environment; Consumer
behavior; Consumer marketing; Innovation; Market analysis; Market
research; Marketing strategy; Product introduction; Product
management
In early 2002, Pamela Pollace, vice president and director of Intel's
worldwide marketing operations, is debating whether the company
should extend its "Intel Inside" branding campaign to non-PC product
categories, such as cell phones and PDAs. The "Intel Inside"
campaign has been one of the most successful branding campaigns in
history. However, the campaign is more than ten years old, and growth
in the PC market appears to be stagnating. In contrast, sales of
portable digital devices--such as PDAs and cell phones--appear to be
growing at a healthy rate. Pollace is debating whether the "Intel Inside"
campaign will work in these other product categories, even though
Intel doesn't dominate these other markets like it does the PC market,
and it isn't clear that consumers will associate Intel with these other
markets.
Learning Objective: Allows students to examine the logic and
implications of an ingredient branding strategy. Facilitates a discussion
of some fundamental questions about branding, such as: Why do
companies build brands? What does a brand buy you? What are the
necessary and sufficient conditions for a successful branding
campaign? How extensible are brands?
Abstract
In 2002, the IKEA Group is the world's top furniture retailer, with 154
stores worldwide. In the United States, IKEA operates 14 stores, all of
which have been enormously popular despite their self-service
Length: 13p
Teaching Note: 504095
Confronting Low-End
Competition: Don Potter
Product #: SMR147
Length: 8p
Abstract
Charles Hughes, president and CEO of Land Rover North America,
Inc., is debating product positioning options for the new Land Rover
Discovery. The positioning decision must consider the role of the
Discovery vis-`a-vis other vehicles in the LRNA line, the brand's
strengths and weaknesses versus competition, and the positioning of
the Land Rover umbrella brand in the U.K. An allocation of marketing
funds across brands and mix elements must also be determined and
decisions on the company's innovative retailing strategy and
experience marketing initiatives made. The case contains rich
consumer behavior data. Includes color exhibits.
Learning Objective: To demonstrate the process of turning consumer
research data into sound brand and line positioning recommendations;
to expose students to concepts of brand personality and brand equity
and show how these shape and contain management decisions; to
explore difficulties of managing brand equity on global basis.
Chapter 4 Pre-Purchase
Processes: Need
Recognition, Search and PrePurchase Evaluation
The Three Faces of Consumer
Promotions: Priya Raghubir, J.
Jeffrey Inman, Hans Grande
Product #: CMR289
Length: 24p
Chapter 5 Purchase
The Dimensions of Brand
Equity for Nestle Crunch Bar, A
Research Case: Gerald
Zaltman
Product #: 500083
Length: 56p
A.1. Steak Sauce: Lawry's
Abstract
Sales promotions targeted at consumers (e.g., coupons, sweepstakes,
free offers) are becoming a large and growing part of marketing
budgets worldwide. Presents a framework that examines the effect of
managerially controllable actions--specifically, designing and
communicating a sales promotion--on increasing the incentive for
different segments of consumers to purchase a product. Sales
promotions have three distinct aspects: an economic aspect that
provides both incentives and disincentives to purchase a brand; an
informational aspect that consumers use to make purchase decisions;
and an affective aspect that influences how consumers feel about their
shopping transaction, both positively and negatively. How a
promotional offer is designed and communicated determines both its
information value and its affective appeal, which then enhances or
diminishes the attractiveness of the offer beyond the economic
incentive it provides. Companies' promotion strategies should attempt
to maximize the positive informative and affective aspects, as these
can lessen the need for a large economic incentive and thereby
increase the promotions' profitability.
Subjects Covered: Consumer behavior; Marketing strategy;
Profitability analysis; Sales promotions
Bob Berney, president of Newmarket Films, must decide on a
distribution and marketing strategy for Mel Gibson's controversial new
movie, The Passion of the Christ. Fueled by Gibson's star power as
well as an extensive prescreening campaign among Christian leaders
and others representing likely target audiences in the summer of 2003,
the religious movie had started to generate publicity in mainstream
media. Five months prior to the film's scheduled opening on February
25, 2004, Berney has to choose whether to continue with the
prescreening campaign to stimulate further word-of-mouth among core
audiences or switch to a mainstream media advertising campaign
more commonly used to promote new movies. He also has to
determine the appropriate distribution strategy, in particular whether to
opt for a wide or limited release and whether to change the timing of
the release.
Learning Objective: To develop a distribution and
advertising/promotion strategy for a new product and analyze the
value of a marketing campaign based on mass-media advertising
versus word-of-mouth dynamics. Also, to study the marketing of a
blockbuster product.
Abstract
An in-depth study of consumer thoughts and feelings about a branded
candy bar.
Learning Objective: To help students understand and use consumer
mental models.
Chuck Smith, senior brand manager of A.1. Steak Sauce, learns that
Chapter 6 Post-Purchase
Process: Consumption and
Post-Consumption
Evaluations
Starbucks: Delivering Customer
Service: Youngme Moon, John
A. Quelch
Product #: 504016
Length: 20p
Teaching Note: 504089
Chapter 7 Demographics,
Psychographics and
Personality
The Microeconomics of
Customer Relationships: Fred
Reichheld
Product #: SMR197
Length: 8p
Abstract
Starbucks, the dominant specialty-coffee brand in North America, must
respond to recent market research indicating that the company is not
meeting customer expectations in terms of service. To increase
customer satisfaction, the company is debating a plan that would
increase the amount of labor in the stores and theoretically increase
speed-of-service. However, the impact of the plan (which would cost
$40 million annually) on the company's bottom line is unclear.
Learning Objective: To explore the various meanings of the concept
of "service" in the context of a company that is evolving in terms of
both size and the composition of its customer base and to look at the
links between "customer satisfaction" and a company's sales and
profitability.
Over the decades, Kinko's had forged a deep emotional bond with
consumers by easing their anxiety and helping them solve pressing
document processing problems. By 2003, however, consumer
research revealed that a confusing retail experience had eroded some
of this good will. Challenged to increase revenues for this segment
and the company as a whole, Kinko's CEO and president faced a
momentous decision: Should he radically overhaul the retail business,
or should he shift resources to Kinko's healthier commercial business,
"harvesting" the retail business for short-term profit? Includes color
exhibits.
Learning Objective: To explore the ways in which firms can achieve
customer loyalty and satisfaction in mature industries. To consider the
inter-relationships among various customer segments and their impact
on overall brands
Abstract
Despite considerable research on customer retention and word-ofmouth referrals, it has always been difficult quantifying their
contributions to the bottom line. Using a metric known as "net
promoter score" (NPS), the author believes firms can measure the
dollar value of customers based on satisfaction levels. A survey of
thousands of customers in six industries reveals that customers tend
to cluster into one of three categories: promoters, passives, and
detractors. Promoters represent more than 80% of the positive
referrals a company receives, whereas detractors represent more than
80% of the negative word-of-mouth. NPS is determined by subtracting
the percentage of detractors from the percentage of promoters. Using
Chapter 8 Consumer
Motivation
The Harvard Graduate Student
Housing Survey: Luc Wathieu
Product #: 505059
Length: 33p
Teaching Note: 506070
this data, a firm can quantify the value of a customer by tracking five
categories: retention rate, profit margins, spending, cost efficiencies,
and word-of-mouth. The firm can then use NPS to make strategic
decisions by targeting its efforts to leverage the most value for its
customer service dollar.
Subjects Covered: Customer relationship management; Customer
satisfaction; Marketing; Quality management; Service management
Ted Katagi, marketing strategy manager of Kansai Digital Phone
(KDP), utilizes customer lifetime value as a key metric to prioritize
initiatives in an emergency plan to turn around the company. KDP is a
regional phone company in Japan with less than stellar performance.
Katagi is sent from the U.S. partner, Airtouch (later Vodafone), to
assemble a team to design and implement a plan that improves
company to performance. Katagi must quickly prioritize actions and
then assess the expected economic impact.
Learning Objective: To explain the technique and use of customer
lifetime value.
Abstract
Harvard Real Estate Services executives need to design the 2005
Graduate Student Housing Survey for maximum impact in anticipation
of Harvard's long-term expansion project in Allston. Students are
challenged to help executives in charge to (1) draw the lessons from
their earlier survey experience: what survey data had most--or least-impact and why? and (2) imagine what survey data--accounting for the
power and limits of survey research--could be most useful for the
Allston initiative. Provides a complete template for survey research,
while at the same time raises critical issues--technical issues as well
as more managerial questions related to the proactive management of
market research in organizations.
Learning Objective: To teach survey research (design and
integration in a customer-focused organization), in a highly motivating
content.
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
Abstract
In less than a decade, Korea's Samsung has transformed itself from a
maker of low-end consumer electronics into a legitimate rival to
Japanese industry giants such as Sony and Panasonic. Success has
been due largely to efforts to reposition Samsung as a provider of
stylish, leading-edge digital technology. But shadows of the old brand
image remain, spurred on by the continued availability of several of the
company's traditional products. The president of Samsung Electronics
Canada has been directed to solve this problem, prompting difficult
choices regarding product, pricing, distribution, and promotion that
threaten to hurt sales and short-run profits.
Subjects Covered: Brands; Consumer marketing; Distribution;
Marketing management; Marketing mix; Pricing; Product positioning
Abstract
Vans is best known for selling footwear and apparel to skateboarders,
surfers, and other alternative sports athletes. In April 2002, Gary
Schoenfeld, the CEO, is facing a number of challenges. With respect
to footwear, he must decide what to do about two product lines that
are struggling--the outdoor line of hiking shoes and the women's
collection. More broadly, Vans is currently embarking on a number of
new ventures, some of with which the company has little experience.
For example, Vans is in the process of promoting a full-length movie,
creating its own record label, and working with video-game
developers to develop games based on its sporting events. Traces
the up-and-down history of a niche fashion brand in a market in which
consumers are notoriously fickle. In recent years, the CEO appears to
have revived the brand; however, it is unclear whether the company
is in danger of losing its hardcore customer base as it ventures into
the consumer mainstream.
Learning Objective: Allows for an examination of how a brand can
evolve over time, as well as a discussion of the conflict that can arise
when the growth and popularity of a brand affects its perception of
authenticity among its most loyal customers.
The second Harley-Davidson Posse Ride, a grueling 2,300 mile, 10day trek from South Padre Island, Tex., to the Canadian Border is
billed "for serious riders only." Harley Owner's Group (H.O.G.)
Director Mike Keefe must decide whether this rolling rally deserves a
place in the H.O.G. product line, and if so, what philosophy and
tactics to adopt in future design. This case helps students get inside
one of the world's strongest brands to consider issues of brand
loyalty, close-to-the-customer philosophy, the cultivation of brand
community, and the day-to-day execution of relationship marketing
Abstract
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.
Learning Objective: To examine the interplay between pricing,
target market selection, and a firm's overall value proposition.
Explores the psychology of pricing at the level of price points and at
the level of pricing structure. Demonstrates the nonlinear impact of
price on both demand and profitability. Also demonstrates the extent
to which pricing structure (as opposed to price point per se) can affect
the consumption experience.
Abstract
Brodie Keast is anxious to understand the sharp contrast between the
inertia of prospects and the deep emotional response shown by
converted users of TiVo. After an overview of the company's situation
and problems, the case focuses on different kinds of data (sales
results, satisfaction and usage data, purchase influence,
demographics, attitude data, and behavioral data) and explains how
that data emerged over time as the company was more and more
pressured to explore the essence of its value proposition.
Abstract
In early 2004, less than a year after its launch, Sony's EyeToy, a
unique video gaming concept, had become a tremendous success
across Europe. Developed for use with Sony's PlayStation 2 console,
the revolutionary technology allowed users standing in front of a small
camera to interact with game objects appearing on a television
screen just by moving their bodies. Sales for the first EyeToy product
("Play"), a bundle of the camera and software, exceeded all
expectations. However, sales for the second product ("Groove") were
disappointing. Was it time for the EyeToy team to rethink its product
development and marketing strategy? How could the team sustain
EyeToy's initial success and prove that the concept was not a fad?
Learning Objective: To investigate ways in which companies can
sustain value in industries characterized by short product lifecycles
and fickle consumer tastes. Also, to explore appropriate marketing
strategies for brand extensions or, more specifically, complementary
brand extensions.
Abstract
Harry Rawlinson is managing director of Aqualisa, a major U.K.
manufacturer of showers. He has just launched the most significant
shower innovation in recent history: the Quartz shower. The shower
provides significant improvements in terms of quality, cost, and ease
of installation. In product testing, the Quartz shower received rave
reviews from both consumers and plumbers alike. However, early
sales of the Quartz have been disappointing. Rawlinson is now faced
with some key decisions about whether to change his channel
strategy, promotional strategy, and the overall positioning of the
product in the context of his existing product line.
Learning Objective: Designed to illustrate the challenges associated
with bringing a new product to market. Allows for a rich discussion of
customer behavior (including end consumers and installers). In
addition, allows for a in-depth discussion of the positioning of a new
product within the context of an existing product line and the use of
multiple brands to manage products across their lifecycle.
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.
Chapter 16 Helping
Consumers to Remember
Brand Report Card Exercise:
Katherine N. Lemon, Elizabeth
Bornheimer, Kevin Lane Keller
Product #: 501004
Length: 11p
Teaching Note: 501006
Abstract
Green marketing has not lived up to the hopes and dreams of many
managers and activists. Although public opinion polls consistently
show that consumers would prefer to choose a green product over
one that is less friendly to the environment when all other things are
equal, those "other things" are rarely equal in the minds of
consumers. For example, when consumers are forced to make tradeoffs between product attributes or helping the environment, the
environment almost never wins. And hopes for green products also
have been hurt by the perception that such products are of lower
quality or don't really deliver on their environmental promises. And,
yet, the news isn't all bad, as the growing number of people willing to
pay a premium for green products--from organic foods to energyefficient appliances--attests. How, then, should companies handle
these issues? They must always keep in mind that consumers are
unlikely to compromise on traditional product attributes, such as
convenience, availability, price, quality, and performance. It's even
more important to realize, however, that there is no single green
marketing strategy that is right for every company. The authors
suggest that companies should follow one of four strategies,
depending on market and competitive conditions, from the relatively
passive and silent "lean green" approach to the more aggressive and
visible "extreme green" approach--with "defensive green" and
"shaded green" in between.
Subjects Covered: Business ethics; Environmental protection;
Government policy; Marketing implementation; Marketing
management; Marketing strategy
Abstract
Designed primarily to give students the opportunity to evaluate
brands by breaking down individual attributes and analyzing
performance in these areas. In doing so, students will be able to
isolate a brand's distinct characteristics and decide which areas are
the most important for improving brand performance.
Learning Objective: To provide careful brand analysis.