FALL 2014 SEMESTER SYLLABUS
Marketing B8654-001 Retailing: Marketing Strategy With Implications For Valuation
This course is principally marketing focused. Professor Feiner will lecture on a variety of retailing formats
including department stores (e.g. Macys), mass merchandisers (e.g. Sears Holdings), discount store operators (e.g.
Wal-Mart and Target) specialty apparel stores (e.g. The Gap), hard goods retailers (e.g. Best Buy), luxury goods
companies (e.g. Gucci), upscale retailers (e.g. Saks), on-line retailers (e.g. Amazon), home improvement retailers
(e.g. The Home Depot), vertically integrated retailers (e.g. Polo Ralph Lauren), and warehouse club operators (e.g.
Costco).
The class content will concentrate on marketing strategy as well as metrics. These will provide students with
specific tangible takeaways and specific retailing situations. The first three retailing situations provide the
students with strategy oriented dilemmas as well as a better understanding of marketing core competency. The
latter situations (see paragraph four below) utilize specific case studies authored by Professor Feiner.
In regard to the management oriented situations, these are examined in the context of: 1. The decision by J.C.
Penney to bring in a former top level Apple executive to become its new CEO. The result of this decision was
numerous changes in merchandising and marketing. In addition, there was the recruitment of a large number of
outside top level executives – many from Apple - to replace the existing Penney ones. These changes resulted in
significant loss of sales with a concurrent negative impact on the company’s bottom line as well as its stock. A
second example of a key situation will be what happened at Saks, Inc. relatively recently. Specifically, as a result
of a buyout, the new management recruited an executive from London-based Harrods to replace the top level
American merchandising and marketing executive. Given the significant differences in customer tastes, consumer
preferences, etc., was this the correct decision or should the new management rather have brought in a U. S.
department store executive? Finally, a third marketing learning task will be to ask the students to act as though
they were part of a McKinsey consulting team. They will be asked to recommend what should be done as it
relates to a takeover of a company and the replacement of top level executives. These three examples will
provide students with the ability to establish a so-called marketing metric grid (dashboard) which would in
essence be their key learnings for the semester.
The third part of the class will incorporate case studies authored by Professor Feiner in which students will be
asked to focus on one or more key marketing questions. As examples, in the Walmart case study students will be
asked questions relating to this large retailer being able to successfully transport its format to other countries
across the globe. This case will focus on recognizing the ensuing challenges – customer tastes, pricing, etc. - from
a marketing standpoint. In the case of Costco, students will be asked to focus on how a company which was
essentially originated to sell to small businesses evolved from a marketing standpoint into a individual retail
customer oriented format. Thirdly, students will be asked to focus on how a department store like Macy’s can
compete against other apparel retailers such as Kohl’s, Limited Brands, Target. This question will focus on a
number of marketing issues including the price value equation, etc. Lastly, the students will examine the
marketing thesis associated with “the razor and razor blade” when we delve into the Green Mountain Coffee
Roasters case. Here the individual coffee machine and associated individual pods represent the razor and blades
respectively.
From a marketing perspective, a number of key topics will be discussed to enable students to truly understand
how different retailers operate. These include, but are not limited, to the following: 1. How a retailer can
effectuate a successful price value equation to its customer base; 2. Understanding specific metrics such as sales
productivity, markdown implications and sourcing from abroad vis a vie domestically; 3. Lastly, the course will
include local store visits to New York City area retailers including Polo Ralph Lauren, Saks and Macys, where
Professor Feiner will highlight how different retailers communicate with their customers through a variety of
merchandising, pricing and in-store presentations . Professor Feiner will be accompanied in his presentations by
key executives of the retailers visited.
Key Learnings from taking this class.
Students who take this class should come away with a strong understanding of how retailers utilize
specific marketing strategies. Relatedly, students will learn through in depth lectures by Professor
Feiner as well as through case studies authored by Professor Feiner. The end result should be that
students will be able to assemble a marketing metric grid dashboard incorporating all the key learnings
of the semester.
Method of Evaluation:
Course requirements (and evaluation) are: 1. Five case write ups (four page maximum in length); 2. In
class task reviews of learnings from Professor Feiner’s lectures on marketing strategy; 3. And field work
small group (to be done by three or four students together) projects on marketing metrics.
Jeffrey M. Feiner was a Managing Director of Lehman Brothers in the Equity Research Department before
retiring from that firm in February, 2002. Professor Feiner, who joined Lehman in November 1997, was the
Senior Broadline Retailing Analyst covering department stores, mass merchandisers, discounters as well
as luxury goods companies and specialty retailers. He had been a member of the prestigious Institutional
Investor All-America Research Team every year since 1974. Many institutional investors considered
Professor Feiner as the expert on Wal-Mart Stores through his eleven treatises entitled Wal-Mart Stores –
An Encyclopedia Series. His last published Wal-Mart Stores report was entitled The Encyclopedia XBuilding a Global Brand. This is still used as a reference piece by many institutional investors.
Prior to joining Lehman Brothers, Professor Feiner spent six years as a Managing Director at Salomon
Brothers. Prior to 1992, he spent 15 years at Merrill Lynch & Co. covering the same industries. Before
Merrill Lynch, he was a Research Analyst at Drexel Burnham Lambert and Dean Witter & Co. For the past
thirteen years Mr. Feiner has been associated with Tremblant Capital, a New York money management
firm which specializes in investing in retailing and consumer related companies and stocks.
In addition, to being a Wall Street Retailing Analyst, Mr. Feiner was frequently quoted in the Wall Street
Journal and New York Times as well as being a frequent guest on CNBC, Louis Rukeyser’s Wall Street
week program and a guest speaker at many retailing forums including the National Retail Federation.
Professor Feiner holds a BS in Economics from the University of Pennsylvania's Wharton School of
Business and an MBA in Finance from the Columbia University Graduate School of Business. He is a
Chartered Financial Analyst and a member of the National Retail Federation, the New York Society of
Security Analysts, the Merchandising Analyst Group of New York and the Financial Analyst Federation.
Professor Feiner joined the faculty of Columbia Business School in the spring of 2003 teaching Retailing:
Strategy & Execution. He first began teaching a half semester course on a joint basis with another
Professor in the spring of 2003. He then returned to teach the class by himself for half a semester in the
fall of 2003. Reflecting continued student enthusiasm, the course was again expanded to a full semester in
the fall of 2004 and again was repeated in the fall of 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and
2013. Professor Feiner is returning in the fall of 2014 to teach another full semester course.
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Domenico De Sole - Chairman of Tom Ford Brands and former President-Gucci Group
Millard Drexler, Chairman & CEO, J. Crew
Frank Blake, Chairman & CEO, The Home Depot
Stephen Sadove, former Chairman and CEO, Saks, Inc.
Jerry Storch, former Chairman and CEO, Toys R Us
David Tehle, EVP & CFO, Dollar General
Pamela Hootkin, SVP Treasurer & Investor Relations, Phillips-Van Heusen
Brad Sikorski, Vice President of Operations Finance, Walmart
Rob Campbell, SVP Finance, Nordstrom
Rob Coope, General Manager, Costco Wholesale