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at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To search for alternatives, or to get more information on the cases listed below, visit our web site at www.hbsp.harvard.edu. 1. What is CB and Why Should I Care? TiVo Alice M. Tybout, Julie Hennessy Type: Kellogg case Pub. Date: Jan 01, 2004 Product #: KEL132-PDF-ENG Length: 8p Teaching Note: N/A
Inside Intel Inside Youngme Moon, Christina Darwall Type: HBS Premier case Pub. Date: Jun 05, 2002 Product # 502083-PDF-ENG Length: 24p Teaching Note: Yes
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. 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
2. Value and the Consumer Behavior Value Framework.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) IKEA Invades America Youngme Moon Type: HBS Premier case Pub. Date: Apr 27, 2004 Product # 504094-PDF-ENG Length: 13p Teaching Note: Yes 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 requirements. The company's goal is to have 50 stores in operation in the United States by 2013. Explores various options for managing this growth strategy. Learning Objective: To explore several nontraditional positioning strategies, specifically, how a company was able to fashion together a unique--and heretofore unheard of--combination of benefits that ultimately ended up creating a distinctive brand experience for American consumers. Also, to illustrate the advantages associated with establishing a market position that is highly differentiated from the competition. Every industry leader lives in fear of the low-end competitor--a company offering much lower prices for a seemingly similar product. The vast majority of such low-end companies fall into one of four types: strippers, predators, reformers, or transformers. Each of these is defined by the functionality of product and the convenience of purchase. Strippers, for instance, typically enter a market with a barebones offering, reduced in function and usually in convenience. Industry leaders have significant advantages for combating low-end competition, but they often hesitate because they're afraid their actions will adversely affect their current profit margins. The answer, then, is to find the response that is most likely to restore market calm in the least disruptive way. An industry leader could choose to ride out the challenge by ignoring, blocking, or acquiring the low-end competitor. Or it could decide to strengthen its own value proposition by adding new price points, increasing its level of benefits, or dropping its prices. Such tactics can be effective in the short term, but the industry leader also needs to consider strategic retreat, particularly when certain conditions make future low-end challenges inevitable.
Confronting Low-End Competition Don Potter Type: MIT Sloan case Publication Date: Jul 01, 2004 Product # SMR147-PDF-ENG Length: 8p Teaching Note: N/A
3. Consumer Learning Starts Here: Perception.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Land Rover North America, Inc. Susan Fournier Type: HBS case Pub. Date: Sep 01, 1995 Product # 596036-PDF-ENG Length: 32p Teaching Note: Yes 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. 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.
4. Comprehension, Memory, & Cognitive Learning. The Three Faces of Consumer Promotions Priya Raghubir, J. Jeffrey Inman, Hans Grande Type: CMR case Pub. Date: Aug 01, 2004 Product # CMR289-PDF-ENG Length: 24p Teaching Note: N/A
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) The Passion of the Christ (A) John Quelch, Anita Elberse, Anna Harrington Type: HBS case Pub. Date: Sep 01, 2004 Product # 505025-PDF-ENG Length: 17p Teaching Note: Yes 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. 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.
Brand Report Card Exercise Katherine N. Lemon, Elizabeth Bornheimer, Kevin L. Keller Type: HBP Exercise Pub. Date: Aug 15, 2000 Product # 501004-PDF-ENG Length: 11p Teaching Note: Yes 5. Motivation and Emotions— Driving Consumer Behavior. The Harvard Graduate Student Housing Survey Luc Wathieu Type: HBS case Pub. Date: Jan 25, 2005 Product # 505059-PDF-ENG Length: 33p Teaching Note: Yes
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.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Do Customer Loyalty Programs Really Work? Grahame R. Dowling, Mark Uncles Type: MIT Sloan case Pub. Date: Jul 01, 1997 Product # SMR031-PDF-ENG Length: 16p Teaching Note: N/A 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. 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.
The Dimensions of Brand Equity for Nestle Crunch Bar, A Research Case Type: HBS case Pub. Date: Jan 27, 2000 Gerald Zaltman Product # 500083-PDF-ENG Length: 56p Teaching Note: N/A A.1. Steak Sauce: Lawry's Defense Timothy Calkins Type: Kellogg case Pub. Date: Jan 01, 2004 Product # KEL010-PDF-ENG Length: 8p Teaching Note: Yes 6. Personality, Lifestyles and the Self-Concept.
Chuck Smith, senior brand manager of A.1. Steak Sauce, learns that Lawry's will soon be launching a steak sauce product. He has to determine whether A.1. should defend its business and, if so, what A.1. should do. In formulating the recommendation, he has to consider competitive dynamics and work through the financial implications.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) The Microeconomics of Customer Relationships Fred Reichheld Type: MIT Sloan case Pub. Date: Jan 01, 2006 Product # SMR197-PDF-ENG Length: 8p Teaching Note: N/A 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 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. 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 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. Abstract
Kansai Digital Phone: Zutto, Gaining Japanese Loyalty F. Asis Martinez-Jerez, James R. Dillon Type: HBS case Pub. Date: Jul 19, 2005 Product # 106006-PDF-ENG Length: 15p Teaching Note: Yes 7. Attitudes and Attitude Change. Samsung: Redefining a Brand Robin Ritchie, Fan Ye, Christian Kim Type: Ivey case Pub. Date: Jul 30, 2004 Product # 904A16-PDF-ENG Length: 20p Teaching Note: Yes 8. Consumer Culture.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Vans: Skating on Air Publication Date Youngme Moon, David Kiron Type: HBS case Pub. Date: Jun 22, 2002 Product # 502077-PDF-ENG Length: 22p Teaching Note: Yes 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-anddown 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-thecustomer philosophy, the cultivation of brand community, and the dayto-day execution of relationship marketing programs. What benefits accrue from relationship programs such as this? Can brand community be built? How? What is the role of the marketer in this process? Is it better to develop customer intimacy or empathy when executing closeto-the-customer goals? Can management really balance apparently disparate subcultures such as the retired bikers, Yuppie Weekend Warriors, and serious outlaws within one community? Includes color exhibits. Learning Objective: To allow students, through rich ethnographic data, to develop an appreciation for the conceptual complexity and managerial challenge involved in cultivating brand loyalties and customer commitments through experiential relationship marketing programs. To allow students to discuss what it means to get close to one's customers, to develop a brand community, and to build relationships between consumers and the company, the brand, the product, and other consumers. The conduct of ethnographic inquiry, and the ability of this method to inform management decisions and goals, can be profitably explored through this case venue as well.
Building Brand Community on the Harley-Davidson Posse Ride Susan Fournier, Sylvia Sensiper, James McAlexander, John Schouten Type: HBS case Pub. Date: Aug 23, 2000 Product # 501015-PDF-ENG Length: 37p Teaching Note: Yes
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Virgin Mobile USA: Pricing for the Very First Time Gail McGovern Type: HBS case Pub. Date: Sep 09, 2003 Product # 504028-PDF-ENG Length: 19p Teaching Note: Yes 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 This case analyzes the business strategy and expansion of JWT China from the late 1990s to 2008. As part of the world's fourth largest marketing communications network, JWT China grew into one of the largest integrated communications companies in China operating from offices in various parts of the country. The case provides students with a comprehensive history of and insights into China's advertising industry and the challenges for foreign and domestic firms operating within a highly regulated media environment controlled by the Chinese government. At the same time, this case offers insights into the structure of the highly fragmented Chinese consumers market, exploring the socio-economic disparities in income and media access as well as culturally determined consumer behavior across different regions and urban and rural areas. The case lets students explore how these trends might impact JWT's advertising and marketing strategies in the future and how to evaluate JWT's business expansion in China dealing with local and foreign competition. Learning Objective: How a multinational marketing communications network can effectively reach the new Chinese middle class as consumers across China; how to expand the business in China, dealing with local and foreign competition. Abstract
9. Micro-cultrures JWT China: Advertising for the New Chinese Consumer Elisabeth Koll Type: HBS case Pub. Date: Feb 24, 2009 Product # 809079-PDF-ENG Length: 26p Teaching Note: N/A
10. Group Influence.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) TiVo in 2002: Consumer Behavior Luc Wathieu, Michael Zoglio Type: HBS case Pub. Date: Mar 08, 2002 Product # 502062-PDF-ENG Length: 14p Teaching Note: Yes 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. Learning Objective: To examine the role of consumer control in consumption, understand products that "change your life," choose research methods that match the type of insights sought, and explore the relationship between consumer knowledge and managerial action. 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.
Sony EyeToy Anita Elberse, Youngme Moon Type: HBS case Pub. Date: Jul 28, 2004 Product # 505024-PDF-ENG Length: 23p Teaching Note: Yes
11. Consumers in Situations. Aqualisa Quartz: Simply a Better Shower Youngme Moon, Kerry Herman Type: HBS Premier case Pub. Date: Jan 16, 2002 Product # 502030-PDF-ENG Length: 18p Teaching Note: Yes
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.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Callaway Golf Co. Rajiv Lal, Edith D. Prescott Type: HBS Premier case Pub. Date: Aug 11, 2000 Product # 501019-PDF-ENG Length: 23p Teaching Note: Yes 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. Learning Objective: For use in the first year marketing course. Taught in the Sustaining Value Module which focuses on how the marketing programs need to change as the product evolves over its life cycle.
Choosing the Right Green Marketing Strategy Jill Meredith Ginsberg, Paul N. Bloom Type: MIT Sloan case Pub. Date: Oct 01, 2004 Product # SMR157-PDF-ENG Length: 8p Teaching Note: N/A
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 trade-offs 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 energy-efficient 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. Abstract
12. Decision Making I: Need Recognition and Search.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Kraft Foods: The Coffee Pod Launch (A) Robin Ritchie, Aleem Visram Type: Ivey case Pub. Date: Nov 03, 2006 Product # 906A19-PDF-ENG Length: 22p Teaching Note: N/A The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct-to-store delivery, and what forms of advertising and promotion to use. Learning Objective: To provide a basis for discussing consumer decision making and stress the importance of providing a clear incremental benefit when introducing a new product in an established category.
13. Decision Making II: Alternative Evaluation & Choice. GOME Electrical Appliances Holding Limited: The "Tuangou" Challenge Robin Ritchie, Aleem Visram Type: Univ. of Hong Kong Pub. Date: Dec 08, 2006 Product # HKU615-PDF-ENG Length: 13p Teaching Note: Yes
Abstract GOME, founded by Wong Kwongyu, had grown from merely a 100square-metre store in Beijing in 1987 to the industry leader in electrical and home appliance retailing in China, with 259 traditional stores and 4 digital stores by 2006. Its success stemmed from its low-margin, highvolume strategy, which was complemented by its striving for service quality and innovation. In 2006, GOME faced the new challenge of tuangou, or group purchase. In order to amass bargaining power to demand discounts from retailers, consumers with similar needs in China united through the Internet and showed up en masse at retailers at pre-arranged times and dates. They would put relentless pressure on retailers and would press for greater discounts. This emerging consumer behavior had spread like wildfire in China and retailers had different reactions. Some yielded to the pressure and offered greater discounts, some only entertained tuangou that had been pre-arranged and/or pre-registered, while others refused to give in and maintained a fixed-price policy. It was up to GOME to determine how best it could deal with this new phenomenon. Abstract
14. Consumption to Satisfaction.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Kinko's Gail McGovern Type: HBS case Pub. Date: Oct 05, 2005 Product # 506024-PDF-ENG Length: 23p Teaching Note: Yes 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? 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.
Starbucks: Delivering Customer Service Youngme Moon, John A. Quelch Type: HBS Premier case Pub. Date: Jul 31, 2003 Product # 504016-PDF-ENG Length: 20p Teaching Note: Yes
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.
16. Consumer and Marketing Misbehavior.
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Cofidis Luc Wathieu Type: HBS case Pub. Date: Jan 22, 2001 Product # 501055-PDF-ENG Length: 19p Teaching Note: Yes An offspring of French catalog marketer 3 Suisses, and a popular sponsor of Tour de France, Cofidis sells consumer credit over the phone, defying conventional banking with a product policy and a communication strategy that perfectly fits the company's comparative (dis)advantages. This case describes: Cofidis' product and value proposition; the evolving competitive context and cultural complexity of the European credit market; the adaptive marketing strategy of the company, which evolved from bundling with the 3 Suisse catalog, to direct mail, to print advertising in TV guides, to bicycling sponsorship, the results of the strategy; and the challenge and opportunities posed by the Internet. Based on the lessons of the past, can we advise Michel Guillois, CEO of Cofidis, on the best way for him to preserve Cofidis' competitive edge? Learning Objective: This case allows students to attempt to answer a myriad of questions. How do you treat a financial product from a marketing standpoint? What does marketing add to the generic consumer credit product? What are the determinants of consumer adoption for a new product? How do you combine product and communication strategies? What is the effect of sports sponsoring? How do you build a brand? How should your marketing strategy unfold over time and across borders to build and maintain a strong brand? Is marketing an acceptable activity or an attempt to fool people with products that they misinterpret? What is the role of freedom and control in a value proposition? How do all these soft marketing elements interact concretely to lead to a profit formula?
Case Map for Babin and Harris CB, 4th Edition (Cengage, ©2013) Mattel and the Toy Recalls (A) Hari Bapuji, Paul W. Beamish Type: Ivey case Pub. Date: Feb 21, 2008 Product # 908M10-PDF-ENG Length: 15p Teaching Note: Yes On August 14, 2007, the U.S. Consumer Product Safety Commission (CPSC) in cooperation with Mattel announced five different recalls of Mattel's toys. On September 4, Mattel announced three more recalls. Some were due to the use of lead paint, while others were due to small magnets coming loose. The (B) case outlines the handling of the recalls and its consequences, such as consumer outrage, media scrutiny, government intervention, and the effect on China. Further, it discusses the design flaws for which large toy companies are responsible. The (B) case raises many issues, such as who Mattel's stakeholders are, what values Mattel followed, and whether Mattel needs to revisit its China strategy. Learning Objective: This case can be used to discuss: (1) The complexity of multinational operations, particularly the issues of (i) coordination and control, (ii) slippages in global supply chains, and (iii) knowledge management and organizational learning. (2) The recall strategy and the various decisions involved in a recall situation. (3) Strategic decision making. (4) The stakeholders of a multinational corporation. (5) The values and ethics a multinational corporation should follow. The cases are appropriate for use in a number of undergraduate and graduate courses. They can be taught from a cross-enterprise perspective or from functional orientations, including: (1) International Management, to illustrate the complexities involved in managing global operations and the challenges of managing multiple stakeholders spread around the world. (2) Strategic Management, to illustrate strategic decision making by discussing the effects of decisions and techniques to handle them. (3) Marketing and Operations Management, to illustrate issues surrounding product recalls and their effective management. (4) Communications Management, to illustrate the importance of communication in crisis situations. After several years of losing market share to competitors, former industry giant R. J. Reynolds (RJR) decides to regain strength through new brands targeting demographic segments that still show significant growth potential. As RJR prepares to launch a cigarette designed and marketed explicitly to black consumers, several community health groups join forces to protest it. When Health and Human Services Director Louis Sullivan asks RJR CEO Jim Johnston to withdraw the brand from the market, RJR needs to formulate an appropriate and socially acceptable response. Learning Objective: To recognize the potential social impact of grassroots opposition to corporate actions and products; evaluate the harm and benefits of marketing to demographic segments; assess the ethics of marketing harmful products to vulnerable populations; and examine the value for social activists of network alliances and coordinated activities for maximum social impact and media attention.
Uptown Cigarette (A1) Robbin Derry, Sachin Waikar Type: Kellogg case Pub. Date: Jan 01, 2006 Product # KEL221-PDF-ENG Length: 5p Teaching Note: Yes
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