Topics in Strategic Consumer Marketing
Martin A.Koschat
I – Focus and Objectives
This course explores how firms – primarily those that serve consumers – develop and execute
marketing strategies. At a fundamental level, a firm needs to address three questions: What do we
offer? Whom do we serve? How do we execute? The answers to these questions form the firm’s
marketing plan. The answers addressing the first two questions – “what” and “for whom” –
comprise the strategic part of the marketing plan. The answers to the third question – “how” –
pertain to decisions related to product, price, promotion and distribution and are called the tactical
part of the marketing plan. Numerous factors affect – and in turn are affected by – a firm’s
strategic decisions. These include the legal and regulatory environment, the presence and nature of
competition, the resources available for execution and the firm’s business model. The focus of this
course is an exploration of how such factors affect strategic decisions. It is often said, that success
is 10% strategy and 90% execution. This may well be so. All execution, however, is for naught if
the strategy is wrong. Every graduate of a business program therefore needs a solid understanding
of how marketing strategies are developed.
The purpose of the course is to give you not only a conceptual but also a practical understanding of
how leading marketers develop and successfully execute their marketing strategies. The
perspective of the course is that of managerial practitioners who need to make numerous
interrelated decisions in the face of complex and often conflicting demands.
II – Course Topics
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Marketing strategy and business model
Creating a point of differentiation
Positioning vis-à-vis an established competitor
Strategic response to regulation
Marketing strategies for an innovation
Strategizing on a shoestring
III – Bibliography (Required readings)
K.Kashani with J.Miller (2003), Innovation and renovation: The Nespresso story, IMD
Case Study, IMD-5-0543.
N. Kumar with B. Rogers (2002), easyJet: The web’s favorite airline, IMD Case Study,
IMD-3-0873.
-2N.Kumar, S.Linguri and N.Tavasoli (2004), Red Bull: The anti-brand brand, LBS Case
Study, LBS-CS-04-006.
Y.Moon (2004), The birth of the Swatch, HBS Case Study, HBS-09-504-096.
E.Ofek, (2010), Product Team Cialis: Getting ready to market, HBS Case Study,
HBS-09-505-038.
J.Walsh, (2006), Snus: No smoke without fire?, IMD Case Study, IMD-05-0707.
IV – Course Work and Methods of Evaluation
The primary method of learning in this course is based on managerially-oriented case
discussions. Cases allow you to learn from the experience of managers operating in realworld companies and from immersion in practical management and business decisions. The
cases capture the complexity faced by managers on all levels. The cases that will be
assigned represent a diverse spectrum of strategic management issues. They have been
selected for their particular relevance to the issues under discussion, as well as for their
capacity and track records as good learning vehicles.
Thorough preparation of each case is a pre-requisite to learning – there are no short cuts!
It is expected that you individually read and prepare the assigned case studies before
coming to class. Equally important to learning is the active involvement and contribution
to class discussions. Class participation has multiple benefits. It helps you to develop your
skills in developing a point a view, articulating this point of view and – in the face of
challenges from your fellow students and your instructor – defending your point of view.
It also benefits your classmates by sharing your analysis and insights with them.
We will also use small group discussions around specific assignments to further the
analysis. However, group discussions are a complement to individual preparation and are
not a substitute for it.
All regular sessions will start with a short multiple choice quiz that will test your
comprehension of the case facts. (Please arrive in class on time, as there will be no make-up
quizzes later on.) You will be evaluated based on your performance on these quizzes (1/3 of
the overall grade), in-class contribution (1/3 of the overall grade) and a written final exam
administered at the end of the last session of the course (1/3 of the overall grade).
In your contribution to in-class learning – largely your contributions to case discussions –
your aim should be to move the discussion of a case along and, in doing so, generate new
insights for your colleagues. Thus, your contribution should be motivated by the substance
of what you have to say rather than by a perceived need to get in airtime. The quality of the
contribution matters! In addition to class participation, you may elect to communicate after
-3a case discussion in class by e-mail a short comment or analysis that relates to that case. I
will, however, not consider such afterthoughts in grading.
The final exam will be an in-class written exam. You will be given a case similar to the
cases that have been presented during the stream and you will be asked to perform your
own case analysis.
One final reminder: Please note that preparation and class attendance are not optional;
they are mandatory. If you cannot attend during the scheduled sessions shown below, this
course is not for you. If you cannot attend a given session (as a result of illness or other
emergencies), you should let me know in advance via email to arrange for substitute work
at: martin_koschat@hotmail.com.
V – Course Director
Instructor:
DDr. Martin A. Koschat
email: martin_koschat@hotmail.com
VI – Language of Instruction
Business English
VII – Schedule of Class Sessions
To be announced.
VIII – Preparation of Class Sessions
Session 1:
Marketing strategy and business model
Preparation: Read the case easyJet: The web’s favorite airline with the following
questions in mind:
1.
Who is the target customer for easyJet? Who isn't?
2.
From the target customer's point of view, what is easyJet's "value proposition"
(i.e. the package of "benefits")?
3. How might a large established airline like BA compete with easyJet?
4. Is the "easy" value proposition transferable to other lines of business? Why?
Why not?
-4Session 2:
Creating a point of differentiation
Preparation: Read the case The birth of the Swatch with the following questions in
mind:
1. Why was the Swatch so successful? In what ways was the Swatch different than
any watch the industry had ever seen?
2. Prior to the introduction of the Swatch, what kind of watches were popular with
consumers? Why?
3. What elements of the original Swatch marketing plan were most critical to the
brand’s success? What do you think of the original product strategy, the channel
strategy, the promotional strategy? Given the huge demand, did the company
make a mistake by not raising price?
4. What challenges faces Swatch today in the marketplace and how should it
respond to them?
Session 3:
Positioning vis-à-vis an established competitor
Preparation: Read the case Product Team Cialis: Getting ready to market with the
following questions in mind:
1. How does the decision process that results in a patient seeking treatment for ED
differ from that of taking - say - an analgesic?
2. What are the most relevant dimensions along which to segment the market for
ED treatment?
3. What is Viagra's positioning in the marketplace in 2002?
4. How would you position Cialis in the marketplace?
5. What marketing mix activities should accompany the launch of Cialis?
a. Who should be the target of your marketing communication and what
messages
would you communicate to each target segment?
b. What medium would you use to reach these targets and what would your
media allocation be?
c. How would you price Cialis?
6. What competitive response would you anticipate from Pfizer?
-5Session 4:
Strategic response to regulation
Preparation: Read the case Snus: No smoke without fire? with the following questions in
mind:
1. Should tobacco products be regulated and if so, why?
2. If you were a regulator, would you allow the introduction for Snus in the EU?
3. If you were a tobacco company, would you push for the introduction of Snus?
Session 5:
Marketing strategies for an innovation
Preparation: Read the case Innovation and renovation: The Nespresso story with the
following questions in mind:
1. Review the history of Nespresso's development since 1974 when the rights to its
technology were acquired? What were the important turning points? Why?
2. What could explain Nestlé's decision to reach outside its large managerial cadre
and hire Lang? How do you assess him as a manager, a marketer and innovator?
3. What are the economics of the Nespresso business? That is, how does Nestle
make money in this business?
4. As of 1999, what are the actual and emerging challenges for Nespresso
management?
5. What plan of action do you recommend for growing Nespresso's turnover to the
corporate target of Sfr. 1 billion?
Session 6:
Strategizing on a shoestring
Preparation: Read the case Red Bull: The anti-brand brand with the following
questions in mind:
1. What is the Red Bull brand? How was it created? Could it have been built with
more traditional marketing means and broad distribution?
2. How can Red Bull grow in the future given the challenges of a maturing
category?
3. What can mainstream brands learn from Red Bull? Can buzz be leveraged by
any company?