Fisher College of Business
MBA 840N
Spring Quarter, 2010
Sections: 9110 (6pm Tuesday, Thursday, Gerlach 375) & 9111 (8 pm, Tuesday, Thursday, Gerlach 375)
Instructor: Larry M. Robinson
Fisher Hall, Room 636
Ph: 614-292-0680
Email: robinson_878@fisher.osu.edu
Teaching Assistant: Claus Eckert Eckert_89@fisher.osu.edu
DESCRIPTION:
Marketing refers to whatever it takes to grow a business by managing exchanges between an organization and its
customers. Marketing creates value for a firm’s chosen customers and extracts a share of that value for the firm.
Marketing requires skills to monitor and understand customers, competitors, and collaborators, and to find a way to
design and deploy the firm’s limited resources to serve its customers at a profit. In this way, marketing helps to set a
firm’s strategic direction.
Marketing is a broad general management responsibility and not something to be delegated to marketing specialists.
Marketing skills are required of all careers concerned with the strategy of organizations of every kind. This course
deals with marketing in a variety of settings: in the old and new economy, service firms, business to business,
consumer packaged goods businesses and retailers.
We will have 20 class sessions in this course. In 16 of the sessions, we will address a marketing issue or issues faced
by a management team. The other four sessions will include three guest speakers and a mid term exam. The final exam
will be given during final exam week at a date to be determined between June 7 and June 10.
Generalizations about marketing will be found in assigned readings in the Marketer’s Toolkit: The 10 Strategies You
Need to Succeed which closely parallel the cases we will study. We will use the 16 classroom sessions to fit
generalizations to specific situations, to sharpen skills in problem diagnosis, and assemble a framework for making
sense of marketing’s complexity. To benefit fully from this format, you must be willing to prepare for each case
discussion from the general management perspective, and come to each class confident that you understand the
problem that management must solve, and know how you would solve it.
Learning Objectives:



To develop effective marketing strategies plans for organizations of all kinds
To illustrate the functional responsibilities of marketing and sales managers
To refine decision-making and analytical skills and be able to express the results of
marketing and sales analysis orally, and in writing
The learning objectives focus on the skills needed by senior management to oversee the marketing function. The
perspective is on what is required to organize, strategize, plan, implement and control the company’s relationships
with current and potential customers. We will focus on how the firm identifies and pursues market opportunities, and
develops action programs to segment, target and position the firm to respond to the opportunities. We will address
issues in customer retention and development. We will also examine internet marketing, marketing beyond US
borders, and the future of marketing.
Text and cases: Text is Harvard Business Essentials, Marketer’s Toolkit: The 10 Strategies You Need to
Succeed, Harvard Business School Press, 2006. You can get the text at bookstores or online at Amazon.com. On
Amazon, the text costs (new) $16.48 as of March 2, 2010 and (used) for $9.98 as of March 2, 2010. There is also a
case packet containing the 16 cases available from UniPrint (price will be about $45.00, the correct price will be
known about March 20, 2010.
How we will achieve these learning objectives:



Case studies which focus on marketing opportunities and issues in consumer services,
consumer packaged goods, and business to business markets---class discussion will focus
on marketing decisions based on analysis of alternatives, and support for selected decisions
Guest lectures by marketing executives from three major companies who are supporters and
employers of Fisher MBAs
Slides which support and elaborate on key concepts in the cases, presented for discussion
following case discussions
Grading:
The grading system is designed so your final evaluation will be based on your strengths and talents rather than
weaknesses. An easy way to think about it is there are four blocks to your grade, weighted as follows:
Mid-Term Exam
Group Cases
Class Contribution
Final Exam
25 points
25 points
25 points
50 points
125 points
Your grade will be modified by dropping the lowest 25 points to get your strongest 100 points. If your poorest
performance is on your mid-term exam, it will count for 0% as opposed to 25%. If your poorest performance is in class
participation, it will count as 0% as opposed to 25%. If your poorest performance is on the two assigned group case
analyses, it will count as 0% as opposed to 25%. And, if your poorest performance is on the final exam, it will count as
25% as opposed to 50%. The ability to drop the lowest scores will also be expanded IF your lowest scores are on one
half of the class contribution (poor score on 1 st half or 2nd half of the course) or on the group case written analysis that
each team will do during each half of the course. The net result is your final grade will include your best 100 points.
Both sections will be combined into one for the final grade, with all students included in a ranking from the highest
total points to the lowest total points.
The mid-term exam will be based on questions related to the subject matter in cases and readings discussed in class in
the 1st ½ of the course. The final exam will be based on questions related to the subject matter in cases and readings
discussed in class in the 2nd ½ of the course.
For the group case assignment: there will be four students in each group. Send an email to the teaching assistant (Claus
Eckert at Eckert_89@fisher.osu.edu ) with the names of each student in your group prior to the second class session
(which is April 1). Claus will respond with an email which states the two cases assigned to your group. Each student
group will be assigned one case in each ½ of the course for a written analysis. The case analysis will be due the day
before the class discussion of that case.
Class Contribution:
Three criteria will be used in reaching a judgment about your class contribution:
1.
Depth and Quality of Contribution
The most important dimension of class contribution concerns what it is you are saying. A high quality comment
reveals depth of insight, rigorous use of case evidence, consistency of argument, and realism.
Depth of insight—good comments are never trivial or obvious. They are not mere facts. They are facts in conjunction
with one another, bringing the class to a deeper level of understanding
Rigorous use of case evidence—assertions must be supported to be powerful. You should constantly by looking to use
qualitative or quantitative case information and analyses to diagnose the problem, to support your position, or to
challenge someone else’s conclusion and action plans.
Consistency—reflects the degree to which your argument is tied together.
Realistic implications—not every comment should be about the action plan. However, useful comments tend to have
implications for action.
To perform well on these criteria, it is important you come to class with a definite action plan and be prepared to help
your classmates appreciate the appropriateness of your plan.
2. Moving Your Peers’ Understanding Forward
Great ideas can be lost through poor presentation. A high quality presentation of ideas must consider the relevance and
timing of comments, and the flow and content of the ensuing class discussion. It demands comments be concise and
clear, conveyed with a spirit of involvement in the discussion at hand.
Relevance—concerns the timing, fit, and placement of your comments. A relevant contribution joins seamlessly with
previous comments to build a coherent, focused discussion. Irrelevant comments (either by topic or timing) can cause
the discussion to digress through previously charted grounds, or to change focus prematurely, resulting in disjointed
communication and a fragmented learning experience. Effective listening, a good sense of timing, and a willingness to
either integrate the work of others or challenge their ideas are the skills that lead to relevance. Occasionally, someone
makes a comment that changes the course of discussion. This can be effective too, but only if the comment is properly
timed.
Clarity and Conciseness—clarity involves speaking with urgency, vividness, and persuasiveness. To be concise, make
your best point in the shortest possible time. A long comment is not by definition a good comment. Similarly, a good
point buried in two poor points, tends to get lost.
Involvement—concerns the energy, interest, and enthusiasm you bring to class. Involvement shows in thoughtful
listening, concentration, tracking of the discussion, and a poised readiness to contribute selectively. Involvement is
discriminating: having a hand in the air regardless of the question posed or the topical discussion underway signals
you are not involved. However, noticing when class discussion has gotten bogged down on a small point and finding a
constructive way to move the discussion forward often is a valuable form of involvement.
3. Frequency
Frequency refers to the attainment of a threshold quantity of contributions that is sufficient for making a reliable
assessment of comment quality. The logic is simple: if contributions are too few, one cannot reliably assess the quality
of your remarks. However, once threshold quantity has been achieved, simply increasing the number of times you talk
does not automatically improve your evaluation. Beyond threshold, it is the quality of your comments that must
improve. In particular, one must be especially careful that in claiming more than your fair share of “airtime”, that
quality is not sacrificed for quantity. Finally, your attempts at participation should not be such that the instructor must
“go looking for you”. You should be attempting to get into the debate on a regular basis.
COMMUNICATION AND MAKING APPOINTMENTS
Your instructor carries his appointment book to class, to facilitate making appointments. Generally, the best times for
appointments are on Tuesday and Thursday afternoons prior to class up to 5:15 pm. The instructor is also available
from 5:30 to 6 pm on Tuesdays and Thursdays in the class room (Gerlach 375) and will stay after last class after 9:48
to meet with students.
Class Schedule: March 30, 2010 through June 3, 2010
March 30
Defining Marketing for 21st Century
Read: Marketer’s Toolkit, Chapter 1 and “Note on Marketing Strategy” (in case
packet)
Case: Snapple (See discussion questions at end of class schedule for each case)
April 1
Marketing Planning
Read: Marketer’s Toolkit, Chapter 2
Case: Oscar Mayer: Strategic Marketing Planning
April 6
Marketing Research
Read: Marketer’s Toolkit, Chapter 3
Case: Saxonville Sausage
April 8
Understanding Customer Behavior—B2C
Case: Propecia: Making Hair Loss History
April 13
Understanding Customer Behavior—B2B
Case: Salesoft, Inc.
April 15
Branding
Read: Marketer’s Toolkit, Chapter 6
Case: Nestle’s Nescafe Partner’s Blend: The Fair Trade Decision (A)
April 20
Guest Speaker: Brand Management -to be announced
April 22
Segmentation, Targeting, Positioning
Read: Marketer’s Toolkit, Chapter 4
Case: The Fashion Channel
April 27
Developing New Products and Services
Reading: Marketer’s Toolkit, Chapter 8
Case: Mountain Man Brewery
April 29
Mid-Term Exam
May 4
Guest Speaker: to be announced
May 6
The Right Customers: Customer Development
Read: Marketer’s Toolkit, Chapter 7 (applies to Harrahs as well)
Case: Best Buy: Customer Centricity
May 11
The Right Customers: Customer Retention & Development
Case: Harrahs Entertainment
May 13
Pricing It Right
Read: Marketer’s Toolkit, Chapter 9
Case: Atlantic Computer: A Bundle of Pricing Options
May 18
Place (Distribution and Selling)
Case: Natureview Farm
May 20
Integrated Marketing Communications
Read: Marketer’s Toolkit, Chapter 10
Case: Cofidis: Selling Consumer Credit by Phone
May 25
Interactive Marketing
Read: Marketer’s Toolkit, Chapter 11
Case: Med-Net Confronts Click Through Competition
May 27
Guest Speaker: to be announced
June 1
Marketing Across Borders
Read: Marketer’s Toolkit, Chapter 12
Case: Gillette Indonesia
June 3
Future of Marketing
Read: Marketer’s Toolkit, Chapter 13
Case: Adidas: Mass Customization
Final Exam
June 7 at either 6 pm to 7:48 or 8 pm to 9:48 in Gerlach 375
Cases for MBA 840N -- Winter 2010
Each student is expected to be prepared to participate in discussion for each of the 16 cases in this course. The cases
listed below include case name, length of case, time period, industry setting, case summary, and a list of questions to
assist in preparation for discussion in class:
Snapple: Brands, Distribution, Entrepreneurship, Market Positioning, Marketing Management, Strategic Market
Planning.
This case tells the story of Snapple’s rise and fall and poses the question “Can it recover”? Snapple went from local to
national success and was poised to go international when the founders sold out to Quaker. The brand proved harder to
manage than Quaker anticipated, and in 1997 was sold for a fraction of its acquisition price. The case includes factors
accounting for the growth and decline and provides a qualitative study of the brand. The case focuses on what actions
the new owners should take.
For our discussion:
1.
2.
3.
4.
From 1972 to 1993, why did Snapple do well when so many small start-up premium fruit drinks stayed small
or disappeared?
Now look at 1994 to 1997. Did Quaker make an error in buying Snapple? What mistakes did Quaker make in
managing the integration of Snapple into its Beverage Division?
What arguments could have been made by a Quaker board member at the time the potential acquisition of
Snapple was being considered by senior management?
What should Mike Weinstein do as he assumes the CEO role at Snapple in 1997?
Saxonville Sausage: Branding, Consumer Behavior, Focus Groups, Food, Market Research, Positioning, Product
Differentiation.
Saxonville Sausage, a $1.5 billion manufacturer of pork sausage products, is experiencing financial stress because its
leading product lines have lately produced declining revenues in product categories that are realizing no growth.
However, one product line, an Italian sausage brand named Vivio, has recently experienced a significant increase in
revenues, as has the entire Italian sausage category nationwide. Unfortunately, Vivio represents only 5% of the
company's total revenues. Ann Banks, a seasoned marketing director, has been hired to expand Vivio, currently
distributed in a few cities, especially in the northeastern U.S, into a powerful national brand. Depicts the sequence of
steps Ann takes to determine the best positioning for the brand. These steps include analyzing and employing specific
techniques for researching customers' needs, preferences, and values; using the learning from research to develop a
motivation-centered characterization of the target consumer; eliciting tactical ideas from a cross-departmental team of
colleagues for product "alterations," packaging, and other contributory elements in the branding program; and finally,
choosing between two positioning that seem equally valid.
Primary objectives of this case include: determine the optimal positioning for a brand to adopt based on consumers'
motivations, influences, and values, and understand the research and post-research processes undertaken by a brand or
marketing manager who is building a plan to increase brand revenues. Supporting Objectives include: translate
learning about target customers into testable positioning concepts; evaluate tactics that support the positioning and
further communicate the brand's identity, and gain insight into choosing between two relatively viable positioning
options.
For our discussion:
1. What is the current situation at Saxonville Sausage?
2. How was the research methodology determined? What consumer behaviors, demographics, and lifestyles do
you deem important in this case? Why?
3. From the research results shown in Exhibit 6: what might a positioning ladder look like for each of the two
“finalist” positionings?
4. What alternative do you recommend? Why?
5. What tactics should be part of the product launch?
Oscar Mayer: Strategic Marketing Planning, Food, New product marketing, Product development, Product
planning & policy.
Oscar Mayer faces a series of strategic marketing options regarding established and new products, including budget
and capacity allocation decisions. The case highlights dynamics of marketing planning and budgeting. The case
illustrates the need to consider inputs from other functions in the planning process.
For our discussion:
1. What 5C issues (Context, Competition, Company, Customers, and Collaborators) are in play for the
marketing planning for Oscar Mayer?
2. Can Marcus McGraw accept all the actions recommended by his team? Why or why not?
3. Which recommended actions are best? Why?
4. What Advertising and Promotion (A&) amounts should be given to the OM brand for next year? How much
A&P should be given to the LR brand? How much should be given to the New Products for launch expenses?
How much should be allocated to mergers & acquisitions (M&A) assuming it would cost $4 million in
current expenses for debt service for an attractive acquisition?
Propecia: Making Hair Loss History, Advertising, Customer Retention, Group Decision Making, Health Care
Policy, Marketing Strategy, Resource Allocation, Target Markets.
In late 1997, Tom Casola, brand manager for Propecia, debates the best approach to market this breakthrough one-aday pill for hair loss. This launch would be atypical for a prescription drug because of the key position of the
consumer. As a result, the team's experience of past launches has little bearing on how its two available instruments,
physician detailing and direct-to-consumer advertising, might play out in this case. Three issues present themselves as
new: the form of advertising, the consumer message, and the balance between consumer and physician marketing
efforts. The ensuing discussion allows participants to explore the goals of and interdependence between various
marketing instruments.
This case explores the effectiveness of various marketing strategies in settings where the decision makers are not the
end users of the product. The case also explores challenges in marketing products where quality depends strongly on
how they are used.
For our discussion:
1. Define Propecia’s potential customer base. What is Propecia competing against in the consumer’s mind?
What can be learned from experience in the hair loss market?
2. How does a customer come to use Propecia? How can Merck best influence that process?
3.
4.
5.
What type of ads, if any, should Tom Casola run at product launch? What message should Propecia convey to
potential customers?
What role does a physician play in this context? How much detailing is necessary?
Do you think a first year sales forecast of $60 million would be conservative or optimistic?
SaleSoft, Inc.: Automation, High Tech Products, Marketing Strategy, Pricing, Product Introduction, Product
Management, Software.
SaleSoft, a start-up firm, markets Comprehensive Sales Automation Solutions (CSAS) that automate a firm's sales,
marketing, and service functions. Even though the product has received very favorable responses from prospects,
product complexity and a long buying cycle have made it difficult for the firm to convert interest into sales orders.
SaleSoft now has an opportunity to sell a part of the total CSAS solution as a stand-alone product. This "Trojan Horse"
(TH) product offers an easy way for the firm to enter new customer accounts, gain quick sales, and generate much
needed revenues. However, it could potentially distract the firm from its primary objective and cannibalize CSAS
sales. SaleSoft needs to decide whether to continue selling CSAS or launch TH. And, the firm needs to develop a
detailed marketing strategy to implement this decision.
For our discussion:
1. Why has it been difficult for SaleSoft to convert interest into sales for PROCEED?
2. Who is the customer for PROCEED? For Trojan Horse? Are they the same customer?
3. What is the buying process for each product? Who in involved? What roles do they play? How long does it
take?
4. Using the information given in Exhibit 7: can we quantify the value of PROCEED and Trojan Horse software
to a customer? How would you use this information to sell either product?
5. If you were Greg Miller: what would you do? Do you launch Trojan Horse software or do you stick with
PROCEED?
Nestle’s Nescafe Partner’s Blend: The Fair Trade Decision (A): Brand Management, Corporate Responsibility,
New Product Marketing, and Business Strategy.
In early 2005, Nestle is in the midst of a decision: whether or not the Fairtrade mark should be applied on Partners'
Blend, a new instant coffee product to be marketed in the growing UK 'ethical' coffee segment. Application of the
Fairtrade mark on the Partners Blend product means that Nestle must go against its historical position of not offering
minimum guaranteed prices to coffee farmers. As part of their deliberations, Nestle executives must consider their
coffee sourcing program at large, their corporate social responsibility framework, Nescafe and corporate Nestle
branding, the UK market, and the potential consumer benefit or backlash that could result from releasing such a
product.
This case illustrates the decisions surrounding a corporate social responsibility activity embedded in brand marketing.
The case itself represents the learning process that Nestle experienced. As part of the decision making process,
marketing executives have to familiarize themselves with supply chain issues, and corporate communications must
take a role in a product launch.
For our discussion:
1. Is Fairtrade an attractive segment for Nescafe’ and Nestle in the United Kingdom? Why or why not?
2. If you were Nestle SA CEO would you launch Fairtrade? Why or why not?
3. What are the implications & tradeoffs in managing corporate social responsiveness & brand management?
The Fashion Channel: Market Segmentation
The new Senior Vice President of Marketing for The Fashion Channel (TFC), a cable television network dedicated to
round-the-clock, fashion-oriented programming, is preparing to recommend a change in the company's traditional
marketing approach by introducing a market segmentation program. This program is, in part, a response to the
intensifying competitive environment for TFC, and it needs to strengthen the company's brand and positioning with
viewers and advertisers. At the same time, the program must maintain consumer and distributor satisfaction with the
network. Several segmentation options are being considered, each with pros and cons. Consumer research provides
insights but does not give a simple answer regarding the best path to take. The reader must evaluate the research
results, calculate financial scenarios, and make a recommendation. Also looks at change management issues. TFC has
never done a program like this before, and the Senior Vice President of Marketing is new to the job. In addition to
making a recommendation, she must manage the change process to insure that the organization and her leadership
team peers are fully aligned.
For our discussion:
1. How would you interpret the consumer and market data if you were Dana Wheeler?
2. What is the expected outcome of the targeting scenarios? (Complete the Ad Revenue and Financial
calculators to fully understand the financial impact of the scenarios)?
3. Analyze the segmentation options with pros and cons of each.
4. If you were Dana Wheeler, what would you recommend and why?
5. Dana is filling the role of change agent. How should she manage the discussion and meeting to be most
effective in leading the group to make the right decision?
Mountain Man Brewing Company: Bringing the Brand to Light: Brand Equity, Brand Management, Breakeven
Analysis, Cannibalization, Consumer Markets, Demographics, Forecasting, Margins, Marketing Metrics, Present
Value, Product Differentiation, Quantitative Analysis.
Chris Prangel, a recent MBA graduate, has returned home to West Virginia to manage the marketing operations of the
Mountain Man Beer Company, a family-owned business he stands to inherit in five years. Mountain Man brews just
one beer, Mountain Man Lager, also known as "West Virginia's beer" and popular among blue-collar workers. Due to
changes in beer drinkers' taste preferences, the company is now experiencing declining sales for the first time in its
history. In response, Chris wants to launch Mountain Man Light, a "light beer" formulation of Mountain Man Lager, in
the hope of attracting younger drinkers to the brand. However, he encounters resistance from senior managers.
Mountain Man Lager's brand equity is a key asset for Mountain Man Brewing Company. The question is whether
Mountain Man Light will enhance it, detract from it, or irreversibly damage it.
This case explores brand equity: its creation and using brands as platforms for growth; the risks and benefits of a
product line extension (including congruent vs. incongruent extensions) using an existing brand name; and the
concepts of cannibalization and brand alienation. It also permits practice for marginal analysis, breakeven analysis,
net present value (NPV) analysis, and sensitivity analysis, emphasizing the difficulty in choosing between qualitative
and quantitative information in making key strategic decisions. You will be given two strategic analysis tools to assist
in this analysis.
For our discussion:
1. What has made MMBC successful? What distinguishes MMBC from its competitors?
2. What has caused MMBC to decline even though it has a strong brand?
3. What are the pros and cons for MMBC to consider concerning introduction of a light beer?
4. Should MMBC launch Mountain Man Light?
5. What other strategic options does Chris have if Mountain Man Light is not launched or is unsuccessful?
Best Buy: Customer Centricity: Business Models, Customers, Leadership, Marketing Strategy, Revenues.
With FY2005 sales of $27.3 billion, Richfield, Minn.-based Best Buy Co., Inc. was the leading retailer of consumer
electronics, home-office products, and related services in North America. Its operations included the distinct store
formats Best Buy, Future Shop in Canada, and Magnolia Audio Video as well as service provider Geek Squad. For the
eight years leading up to 2004, Best Buy had reported double-digit revenue growth every year and rarely missed
earnings. But on December 13, 2005, Best Buy missed its third-quarter earnings per share (coming in at $0.28, not
$0.30). The company's stock price fell nearly 12% that day, a loss of $2 billion in market cap. The poor results were
attributed to the aggressive rollout of 144 new "centricity" stores--revamped retail formats featuring a customer-centric
operating model designed to offer targeted "value propositions" to one or two distinct customer segments. The new
format was a departure from Best Buy's winning formula and required adjustments in interactions between various
parts of the Best Buy organization, including a new set of segment leaders.
For our discussion:
1. Why did Best Buy decide to shift its focus from products to customer segments?
2. Why did the last set of “centricity” stores not fare well?
3. What has to be done to make the Customer Centricity strategy become a success for Best Buy?
Harrahs Entertainment: Customer Relations, Data Bases, Loyalty, Service Management, Ethics.
Describes a situation facing Philip Satre, chairman and CEO of Harrah's Entertainment, Inc. Satre was reading a May
2000 Wall Street Journal story that discussed the company's marketing success in targeting low rollers, the 100%
growth in stock price and profits in the year to December 1999, and the revenue growth of 50%, which significantly
outpaced the industry. The exciting articles aroused Satre's desire to know more about the activities of his then COO,
Gary Loveman, and his team of "propeller heads" with respect to their database marketing efforts and the Total
Reward Program. Satre was interested in two questions: He wanted to know how much these marketing efforts had
contributed to Harrah's overall performance and whether these marketing results were a one-shot event or could be
achieved year after year, especially as the competition introduced similar programs.
This case provides the opportunity to assess the short-term and long-term benefits of database marketing and loyalty
programs.
For our discussion:
1. What are the objectives of the various Data Base Marketing programs (DBM) and are they working?
2. Why is it important to use the “customer worth” in the DBM efforts rather than the observed level of
play?
3. How does Harrahs integrate the various elements of its marketing strategy to deliver more than the
results of its DBM?
4. What is the sustainability of Harrahs actions and strategy?
5. What are the privacy and ethical issues that Harrahs should be concerned about?
Atlantic Computer: A Bundle of Pricing Options: Business to business, marketing, pricing, pricing strategy.
Atlantic Computer, a leading player in the high-end server market, has detected a marketplace opportunity in the basic
server segment. They have developed a new server, the Tronn, to meet the needs of this segment. In addition, they
have created a software tool, called the "Performance Enhancing Server Accelerator," or PESA, that allows the Tronn
to perform up to four times faster than its standard speed. The central question revolves around how to price the Tronn
and PESA. Although cost-plus, competition-based, and status-quo pricing are the most common means by which firms
establish prices for their offerings, these approaches may prevent firms from fully realizing the benefits that are due to
them. Provides an opportunity to optimize value capture for the firm by utilizing value-in-use pricing (i.e., examining
the value that a firm's offering creates for the customer, and using the savings generated as the basis for developing
prices). Also allows for the exploration of the challenges surrounding the implementation of a value-in-use pricing
strategy. These include the reactions of competitors, customers, and stakeholders within the firm.
This case allows contrast of a customer-focused approach to pricing (value-in-use) with company-centric (cost-plus),
competitor-based (competition-based), and status-quo approaches. The case also provides an opportunity to calculate
the price of a new offering utilizing the traditional approaches to pricing as well as value-in-use pricing, and then
evaluate the respective approaches to see which yields optimal value capture for the firm. Also you can consider how
other important stakeholders (competitors, customers, internal managers, and the sales force) potentially impact
implementation of pricing strategy.
For our discussion:
1. Quantify the pricing options Jason Jowers is considering as listed on page 6 of the case: status quo,
competitive, cost plus, and value-in-use.
2. What price should Jason Jowers recommend for the sale of two Tronn computers plus the PESA software
tool to the exemplary customer DayTraderJournal.com?
3.
4.
5.
6.
7.
8.
Approximately how much money would be “left on the table” if Atlantic Computer were to give away
the PESA software tool (which was the industry practice for new software tools) for the years 20012003?
How might Chris Matzer likely react to Jason’s recommended pricing?
How might Cadena’s sales force react to Jason’s recommended pricing?
How might prospective customers in the “basic server” market segment react to Jason’s recommended
pricing?
How might Ontario Zink’s senior management react to Jason’s recommended pricing?
What should Atlantic Computer do to mitigate the likely reactions from questions 4 through 7?
Natureview Farm: Distribution Channels, Margins, Market Share, Pricing, Quantitative Analysis, Retailing, Sales
Promotions, Value chains, and Wholesaling.
Explores channel management issues in the U.S. food industry. Natureview Farm, a Vermont-based producer of
organic yogurt with $13 million in revenues, is the leading national yogurt brand (24% market share) sold into natural
foods stores. It has achieved this through its special yogurt manufacturing process and through cultivating personal
relationships with dairy buyers in the natural foods channel. Set in 2000, when the company faces financial pressure to
grow revenues to $20 million by the end of 2001 due to a planned exit by its venture capital investors. The immediate
decision point for Natureview's vice president of marketing is whether to achieve this revenue growth by expanding
into the supermarket channel.
This case explores potential risks and rewards associated with a company's choice of channel and how these channel
conflicts can potentially be managed. The case also helps develop understanding of the key issues related to consumer
product market development and product development growth strategies. The case also has data to enable students to
calculate margins across distribution channels.
For our discussion:
1. How has Natureview succeeded in the natural foods channel?
2. How do the three options compare financially in terms of yearly revenue, margins, required investment, and
profit potential?
3. If the venture capitalists extended their deadline for meeting the $20 million revenue target by 12 to 18
months, would that change your recommended action plan?
4. What are the strategic advantages and risks of each option?
5. What channel management and channel conflict issues are involved?
6. What action plan should the company pursue? What changes in the current marketing mix, sales, brand, and
channel partners do you recommend?
Cofidis: Selling Consumer Credit by Phone: Advertising, Advertising Ethics, Brands, Communication Strategy,
Direct Marketing, Ethics, International Marketing, and Product Planning & Policy.
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 advantages and disadvantages. 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?
This case allows students 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?
For our discussion:
1. Why does Cofidis own a bicycle team? What are the advantages and disadvantages of the bicycle team
ownership on Cofidis with respect to their use of television advertising?
2. Is direct marketing a sustainable competitive advantage for Cofidis in the consumer credit industry?
3. How does the internet fit in the mix of media that Cofidis is using?
4. What ethical issues are inherent in Cofidis product and marketing strategy?
MedNet Confronts ‘Click Through’ Competition: Advertising, Advertising Strategy, Business Models, Business to
Business, Consumer Marketing, Financial Ratios, Internet Marketing, Search Engines.
In January 2007, "MedNet.com" is a leading website that provides science-based health information free of charge to
online visitors. MedNet communicates with traditional web journalism, interactive software, and social media tools
such as blogs, video reports and virtual reality tours. The site operates conservatively within the government-regulated
health information market. MedNet's business model relies on advertising sales, primarily to pharmaceutical
companies. MedNet competes for advertising dollars with large search engines, category specific sites, and clinical
trial sites. In 2007, large search engines charge for "results," or "click throughs." Other sites, such as online
newspapers, charge for impressions. Advertising campaigns depend on numerous variables (an efficient audience size,
audience frame of mind, willingness to complete a transaction, etc.) In the face of fierce advertising competition,
MedNet is forced to defend key elements of its business model vis-a-vis a large search engine. However, in defending
the advertising value MedNet delivers, MedNet executives may be building the case for why niche sites may be a
better investment for the advertiser's budget.
This case illustrates the Internet industry's structure, especially the marketing implications related to channel power
and influence (large search engines and niche websites). By comparing impression-based with click-through
advertising, to help students understand the variables involved in consumer-based, advertising business models.
Students must identify the best metrics to support various business models and calculate the return on investment
(ROI) for an advertising campaign.
For our discussion:
1. What results does an internet advertiser want/expect from advertising? What are the best metrics for
measuring these wanted/expected results?
2. What argument(s) can Heather Yates make to justify charging Windham Pharmaceuticals for impressions
instead of click throughs?
3. What value to the consumer does a general interest site deliver that a niche site can’t?
4. What steps can MedNet take to address emerging competitive threats?
Gillette Indonesia: Forecasting, International Marketing, Product Planning & Policy.
The country manager of Gillette Indonesia is reviewing his 1996 marketing plan and considering whether the pace of
market development and mix of product sales can be impacted by the level and type of Gillette expenditures in the
market.
This case illustrates the evolution of a product line in an emerging market and helps you understand how management
can influence the pace of market development.
For our discussion:
1. 1. What factors determine demand for razor blades in Indonesia in 1995-1996?
2. 2. How can demand be increased?
3. 3. What is the Customer Lifetime Value of a Sensor customer?
4. 4. What should Gillette do to accelerate the market development for razor blades in Indonesia in 1995-1996?
Adidas: Mass Customization: Customization, Distribution, Information Management, Production, Project
Management and Supply Chain.
Many companies are exploring mass customization as a way to demonstrate market leadership and capture price
premiums. Examines Adidas' recent "mi adidas" initiative, aimed at delivering customized athletic footwear to retail
customers. Discusses the practical implications associated with expanding the initiative from a small pilot to a wider
operation with retail presence. The student can evaluate an interlinked set of issues, from marketing, retailer selection,
and information management through production and distribution, project management, and strategic fit. The case
offers three alternative routes for moving forward as of October 2001 and challenges students to decide the future
direction of "mi adidas."
For our discussion:
1. What is Mass Customization (MC)?
2. How do you evaluate the Adidas MC pilot? Was it a success? What would you have done differently?
3. What issues did Adidas have when they took the pilot to the next level by offering the MC concept to the
retail channel? How could Adidas have mitigated the issues?