Marketing Strategy (MarkStrat)
Fall 2013
Professor Olivier Furrer
Office: E428
email: olivier.furrer@unifr.ch
Office Hours: by appointment only.
Assistant:
Jeremy Kolly
Office: E432
email: jeremy.kolly@unifr.ch
Office Hours: Wednesday 8:30-10:00
Moodle2 Key: MarkStrat13
Inscription on MySES required before September 16
Marketing strategy refers to an organization’s integrated pattern of decisions that
specify its crucial choices concerning products, markets, marketing activities and
marketing resources in the creation, communication and/or delivery of products that
offer value to customers in exchanges with the organization and thereby enables the
organization to achieve specific objectives (Varadarjan, 2010).
I. Course Objectives
This course provides students with solid experience in creating market-driven and market-driving
strategies for the future success of a business. A focus is on discovering and developing a set of
unique competencies for a firm that, through strategic differentiation, leads to sustainable
competitive advantage in the marketplace. Students are provided ample opportunity to develop and
practice creative problem-solving and decision-making skills to simulate the requirements of
today’s complex market environment. Industry analyses will be performed that include the
following: internal/external analysis, customer analysis, competitor analysis, market/submarket
analysis, and comparative strategy assessment.
This course takes a marketing leadership/Chief Marketing Office (CMO) perspective in order to
enhance your ability to use strategic marketing to maximize firm performance.
• Fundamental concepts in marketing strategy development and execution are introduced. Key
analytics that lead to the capability to select and execute successful market-driven and marketdriving strategies are applied to multiple industries and firms.
1
•
•
•
Students will learn how to decide which factors in the competitive landscape are most likely to
affect a business, how you can gauge the level of impact of the factors, and what impact the
factors are likely to have on a business’ future.
The role of creative decision making and innovation for marketing strategy development and
execution is exemplified throughout the course. Simple knowledge of the trends that may
impact a business is of limited use unless you can “break out of the box” as a marketing
leader/CMO and engage in truly creative market analysis and decision making for the future.
Student will have opportunities to practice developing marketing strategies and assess key
implementation issues/challenges associated with them.
At the completion of this course, students should be able to:
•
•
•
•
•
Use the key elements in developing marketing strategy and planning a marketing program.
Enhance problem-solving abilities in operational areas of marketing by providing you with a set
of analytical tools (i.e., frameworks, concepts, models, and techniques).
Present examples of how firms organize their marketing efforts across a broad range of business
settings (e.g., consumer packaged goods, pharmaceutical, telecommunications, financial
services, B2B markets) to develop sales and/or share.
Bridge the disciplines of marketing and strategic management
Present and defend recommendations, and critically examine others’ recommendations
In order to achieve these goals, we will use Sudharshan’s ROTR approach to structure the
marketing strategy domain. ROTR stands for Relationships, Offerings, Timing, and Resources and
is a framework to enable you to formulate, evaluate, and implement marketing strategies.
A Positive Framework for Understanding and Building Market Strategy
Outcome
Competitive Advantage
Marketing Strategy
Implementation
=
=
=
=
Resources
Context
=
=
Relationships
Offerings
Timing
=
=
=
f (Competitive Advantage)
g (Marketing Strategy, Implementation, Context)
Marketing Relationships × Marketing Offerings × Timing × Resources Allocation
Communications, Inducements, Infrastructure, Timing, Information, Opportunism,
Leadership, Diligence, and so forth
Hardware, Software, Intelligentware, Money, Information, Human Resources
Suppliers, Buyers, Substitutes, Potential Entrants, Industry Competitors, Other Publics
(i.e., Stakeholders), Chance Events
Publics × Contracts
Benefit Bundles Products × Prices × Services
(Starting time, Ending time) with reference to Competitors, Customers, Distributors, and
Other Publics (i.e., Stakeholders)
II. The Relationship of Marketing Strategy with other Courses
The course is primarily designed to address strategic marketing issues, but the view of marketing
strategy presented here is dynamic, and integrates element from both marketing management and
corporate strategy. While it recognizes that there are areas of distinction between marketing strategy
and marketing management and between marketing strategy and corporate strategy, it also
recognizes that there are many important areas of overlap. Therefore, concepts and theories learn in
other marketing and strategy courses are used and incorporated in the course.
III. Techniques for Learning Corporate Strategy
The greatest value from master education is seldom realized immediately upon graduation. Such
value is realized over a lifetime, and comes not from having a “bag of tricks” but rather form
2
developing analytical and executive skills. One of the most valuable abilities that you can develop
and sharpen in a master course is the ability to think critically and strategically, and to speak and
write in a logical and compelling manner.
Accordingly, this course will only partially rely on lectures and you will be responsible for a large
portion of your own development. You are encouraged not only to attend classes but also to
carefully prepare for each class and contribute actively to class discussion of the assignments of
each session.
To accomplish these objectives, we will use a variety of learning techniques: lectures, reading
articles, written reports, presentations, text discussion, group work and, class discussion of case
studies. Three of these are distinctive of the course: case analysis, text discussion, and group work.
The emphasis on case analysis, text discussion, and group work, and the compressed nature of the
course make it crucial that you prepare the assigned material for every class. If you fall behind, it
will be very difficult to catch up. Class participation plays an integral part in the learning process
and is a strong predictor of your grades on the assignments and exam.
Case Analysis
Strategic thinking and analysis is best learned through practice. The cases we will study are about real
world corporate situations; they are an opportunity to apply the concepts we discuss in class as well as
further develop our ability to think about and analyze marketing strategy.
For some of you, this course is your first exposure to managerial problems presented as cases. Cases
are unlike most writing. They are not research articles, news articles, or nonfiction books. They do
not make an argument or reach a conclusion. That’s your job!
The case provides facts and figures—in essence, a stage—on which you can practice marketing
strategic decision making. You must sift through prose and interviews in order to decide what is the
major issue facing management. You must identify alternative ways to address the issue. You must
choose a course of action and defend it publicly in the classroom.
Skimming the case while coming to class is useless. Read the case at least twice—once for facts and
once for analysis. Use the questions stated in this syllabus to help you identify the main issue, and
the facts to help you decide what to do. The exhibits and tables in the case often contain the most
relevant information. Don’t ignore them! See if some data can be mustered to support your ideas.
The professor’s job is to encourage discussion and to present and develop key concepts. The
professor does not, in general, directly criticize recommendations. That’s your job! Students must
argue for their ideas, and sometimes that means arguing against other people’s ideas. Learning to do
this seriously but politely is a valuable skill.
At its best, a good case discussion keeps students involved while adding to their real-life
experiences vicariously.
An important source of information on how to conduct a strategic analysis for a case study is:
Boardman, Anthony E., Daniel M. Shapiro, and Aidan R. Vining (2004), “A Framework for
Comprehensive Strategic Analysis,” Journal of Strategic Management Education, 1 (2), 1-36.
Text Discussion
Because strategic marketing issues are complex, the study of marketing strategy has drawn upon a
wide range of disciplines and theories, from industrial organization economics, strategic
3
management, and marketing. As a result, research in strategic marketing represents the confluence
of a various streams of literature and study, which are sometimes contradictory and conflicting.
Much of this work deserves study, not only because it is used in organizations today, but also
because it provides the conceptual foundation for a number of tools and techniques used to define,
implement, and to evaluate marketing strategies.
To manage the strategic marketing process effectively in the competitive landscape of the 21st
century, students must develop skills in critical thinking, problem solving, teamwork, and
communication. They should be able to understand and translate valuable marketing concepts into
practice. For these reasons, one of the objectives of this course is to introduce students to original
research work on strategic marketing.
In groups, students will read original articles with different theoretical points of view on selected
strategic marketing issues. They will then present an analysis of the text they read in front of the
class and discuss the similarities and differences between the texts presented by all the groups.
These text discussions should help students to develop their critical thinking and understanding of
marketing strategy.
Group Work
Discussing cases and preparing analyses in small groups outside of class helps to deepen your
knowledge of marketing strategy. Thus, group work is essential to case preparation and text analysis.
Developing effective group skills is a critical part of the learning process. I will divide the class into
groups of approximately 6–7 students.
Insuring team participation on projects and papers is primarily your responsibility as a group. This is
an important part of the art of management! To facilitate this, at the end of the course, I will ask each
group member to anonymously evaluate the amount and quality of the work of the other group
members (below average, average, above average). Your score on group projects will be weighted by
the evaluation your group gives you (plus or minus 0.5 point on your group mark).
Here are some basic tips for successful project management with a group.
•
•
•
Set milestones and “inch-pebbles.” Milestones indicate when major deliverables are due. Break
them into inch-pebbles—shorter time periods attached to well-defined interim results—so trouble
can be spotted early on.
Schedule resources evenly. Groups need to plan week-to-week assignments.
Communicate. When a particular analysis affects different parts of the paper, make sure everyone
can retrieve and update the complete paper accordingly. Use e-mail and meeting minutes to
communicate deadlines, to track changes, and to enforce accountability.
IV. Course Requirements and Grading
General comment: Judgment versus Analysis. As a master course, Marketing Strategy draws on the
various frameworks, concepts, and techniques discussed in your entire program and adds several of
its own. Remember, however, that these are analytical tools while help in forming judgments about
central problems and associated recommendations; they are not ends in themselves. For example, if
you think the key issue in the case is market entry timing, and then you do a market segmentation
analysis there would be a disconnection between theory and application. In any assignment,
emphasize your judgments (usually by using headings or subheadings) and present data/information
from the case, along with supporting analysis, in support of these judgments.
4
Your class assignments are shown in the syllabus attached, and while subject to change, this
syllabus should guide your work planning for the course. There will be no announcements in class
concerning assignments, except those infrequent ones that may alter those described in this
syllabus. Check Moodle2 regularly (i.e., at least once a week) for news and supplementary material.
Your course grade is a function of the following requirements:
Text Discussion OR Case study (Group)
Final Written Examination (Individual)
40%
60%
A. Text Presentations (Group) – 40%
In each of the text discussion sessions, four texts will be presented and then discussed. Over the
semester, three groups will be responsible for presenting and comparing the texts.
In these sessions, a group will make a 45-minute presentation giving an overview of their analysis of
their texts. After the presentations, the class will then have the opportunity to comment and discuss
the similarities and differences between the four texts presented. The purpose is to generate a deeper
discussion of the issues involved. Students from the other groups will also be responsible to read the
texts and actively participate in the discussion. The groups are also responsible to send me after the
session an email with a copy of the presentation as an attachment at olivier.furrer@unifr.ch and I will
then post it on Moodle2 for the other groups. Please, see the guidelines on text analysis and
presentation for further details.
In addition to their presentation, the groups are responsible for a 15-page written analysis of their
texts. The final version of the analysis is due, for all the groups on December 20th. All of your
work must be original. Any external information used must be properly referenced. Failure to
properly reference any external source constitutes plagiarism. To avoid any confusion over the
originality of your work, your group should work alone, and should not utilize any analysis found
on the web, performed for previous classes, or any other source. Check Moodle2 for the school
policy on plagiarism.
OR
Group Case Analysis –40%
You are also responsible for analyzing the cases we will be discussing in class. For each case, one
group will present an analysis of the case and write a report.
In these sessions, one group will begin by making a 45-minute presentation giving an overview of
their analysis and recommendations. After the presentation, the rest of the class will then have the
opportunity to comment and ask questions on the presentation. The purpose is to generate a deeper
discussion of the issues involved. One copy of the presentation slides should be handed in to me at the
beginning of the presentation. In addition to their presentation, the presenting group is responsible for
a written analysis of the case. The final version of the written analysis is due on December 20th for
all the groups. Please see the guidelines on written analysis and presentations for further details.
Your analyses should focus on identifying a central marketing strategic issue in the case and
5
undertaking an analysis of that issue, including recommendations that follow from that analysis.
You should take the role of a consultant firm being paid to analyze the strategic marketing problem
of the company.
The five biggest mistakes in case analysis:
•
•
•
•
•
Solving five problems poorly instead of one well. Typically cases will contain several
managerial issues. Sometimes they are related; sometimes not. Pick one and focus. Explain how
that solution may help or hurt other issues if possible. If you cannot do this, take confidence in
solving only one problem.
Restating the facts of the case. For example, Bill Gates knows that the company received a big
break by earning the contract with IBM for the operating system for the IBM PC. In a case
analysis for Microsoft, you need not state this again. What should Microsoft do now?
Offering a process recommendation. You are a consultant, and consultants never recommend
hiring other consultants. Saying “IBM needs to do a market study” is a waste of time. After all,
that is what you, the consultant, are being paid to do. The case offers all information available—
make a decision.
Using buzzwords to substitute for thinking. For example, saying “the firm needs to provide high
quality to customer” is true but vacuous. In this industry, to these customers, what does
“quality” mean? Reliability? Conformance to certain specifications? Craftsmanship? Aesthetic
design? Other buzzwords that often prevent analysis include, customer service, focus on the
customer, value added. Note that these are powerful terms when defined in context and when
linked to specific marketing activities to deliver those characteristics.
Failing to proofread. Please be certain your paper contains no spelling or grammatical errors. In
particular, do not confuse: it’s with its; loose with lose; affect with effect; too with to.
All of your work must be original. For this assignment, you should analyze the case you are given;
this means you should not use material that is beyond the scope or time frame of the case.
While you may supplement financial information provided in the case (for example, with financial
statements form competitors, etc.), you should be careful that the data pertains to the same years
covered by the case. Any external information used must be properly referenced. Failure to properly
reference any external source constitutes plagiarism. To avoid any confusion over the originality of
your work, your group should work alone, and should not utilize any analysis found on the web,
performed for previous classes, or any other source.
C. Final Exam – 60%
At the end of the semester, a 90-minute final exam will be in English. The exam will focus on the
application of the conceptual and theoretical material covered in the text analyses, cases, and
lectures. Factual material from cases is not part of the exam.
6
Case and Text Assignments in Groups – Numbers refer to the cases and texts in section VI.
Each group is responsible for one presentation and report (case or text discussion) and to
specifically prepare to discuss two presentations. The case and text assignments are presented in the
table below. The table reads as follows: For example, Group 2 will present case number 1 and
prepare questions to actively participate in text discussion 3 and case number 5.
Present
Group
#1
#2
#3
#4
#5
#6
#7
#8
Case
Discuss
Text
1
1
2
2
3
3
4
5
Case
3, 4
5
4
1, 5
2
1
2, 3
Text
3
1
1
2
2, 3
7
V. Bibliography of Texts and Cases
Main Textbook:
Sudharshan, D. (1995), Marketing Strategy: Relationships, Offerings, Timing & Resource
Allocation, Prentice Hall: Englewood Cliffs, NJ.
Recommended Reading:
Walker, Orville C., Jr. and John W. Mullins (2014), Marketing Strategy: A Decision-Focused
Approach, Eighth Edition, McGraw-Hill-Irwin: Boston.
Furrer, Olivier (2011), Corporate Level Strategy: Theory and Application, Routledge: London &
New York, chapters 3 and 12 only.
Cases for the Marketing Strategy Course:
0.
1.
2.
3.
4.
5.
Toys “R” Us Japan.
Harley-Davidson: Chasing a New Generation of Customers
Marvel Enterprises, Inc.
The Swatch Group
Château Margaux: Launching the Third Wine
Nestlé: Divesting Perrier?
HBS 9-796-077
KEL 742
HBS 9-505-001
HBS 9-512-052
HBS 9-513-107
RUN 308-063-1
Articles (available from the library website):
0. Boardman, Anthony E., Daniel M. Shapiro, and Aidan R. Vining (2004), “A Framework for
Comprehensive Strategic Analysis,” Journal of Strategic Management Education, 1(2): 1–36.
0. Varadarajan, Rajan (2010), “Strategic Marketing and Marketing Strategy: Domain, Definition,
Fundamental Issues and Foundational Premises,” Journal of the Academy of Marketing Science,
38(2): 119–140.
0. Furrer, Olivier and Howard Thomas (2000), “The Rivalry Matrix: Understanding Rivalry and
Competitive Dynamics,” European Management Journal, 18(6): 619–637.
0. Furrer, Olivier, Maria Tereza Alexandre, and D. Sudharshan (2007), “The Impact of Resource–
Strategy Correspondence on Marketing Performance–Financial Performance Tradeoffs,”
Journal of Strategic Marketing, 15(2–3): 161–183.
0. Morgan, Neil A. (2012), “Marketing and Business Performance,” Journal of the Academy of
Marketing Science, 40(1): 102–119.
1. Hunt, Shelby D. and Robert M. Morgan (1995), “The Comparative Advantage Theory of
Competition,” Journal of Marketing, 59(2): 1–15.
2. Porter, Michael E. (1996), “What is Strategy?” Harvard Business Review, 74(6): 61–78.
3. Dickson, Peter Reid (1992), “Toward a General Theory of Competitive Rationality,” Journal of
Marketing, 56(1): 69–83.
4. Srivastava, Rajendra K., Tasadduq A. Shervani, and Liam Fahey (1998), “Market-Based Assets
and Shareholder Value: A Framework for Analysis,” Journal of Marketing, 62(1): 2–18.
5. Morgan, Robert M. and Shelby D. Hunt (1994), “The Commitment–Trust Theory of
Relationship Marketing,” Journal of Marketing, 58(3): 20–38.
8
6. Doney, Patricia M. and Joseph P. Cannon (1997), “An Examination of the Nature of Trust in
Buyer–Seller Relationships,” Journal of Marketing, 61(2): 35–51.
7. Rust, Roland T., Katherine N. Lemon, and Valarie A. Zeithaml (2004), “Return on Marketing:
Using Customer Equity to Focus Marketing Strategy,” Journal of marketing, 68(1): 109–127.
8. Vargo, Steve L. and Robert F. Lusch (2004), “Evolving to a New Dominant Logic for
Marketing,” Journal of Marketing, 68(1): 1–17.
9. Yu, Tieying, Mohan Subramaniam, and Albert A. Cannella, Jr. (2009), “Rivalry Deterrence in
International Markets: Contingencies Governing the Mutual Forbearance Hypothesis,” Academy
of Management Journal, 52(1), 127-147.
10. Young, Greg, Ken G. Smith, Curtis M. Grimm and Daniel Simon (2000), “Multimarket Contact
and Resource Dissimilarity: A Comparative Dynamics Perspective,” Journal of Management,
26(6), 1217-1236.
11. Golden, Brian R. and Hao Ma (2003), “Mutual Forbearance: The Role of Intrafirm Integration
and Rewards,” Academy of Management Journal, 28(3), 479-493.
12. Gimeno, Javier and Carolyn Y. Woo (1999), “Multimarket Contact, Economies of Scope, and
Firm Performance,” Academy of Management Journal, 43(3), 239-259.
I also reserve the right to hand out additional material.
9
GUIDELINES FOR GROUP PRESENTATIONS OF CASE ANALYSES
The objective of these assignments is to enhance your ability to:
• Develop a clear and direct presentation
• Utilize visual aids to support the presentation
• Think on your feet
• Evaluate the adequacy of an argument, position or plan
• Listen critically and pose worthwhile questions that facilitate constructive group
problem-solving
• Give and receive criticism in a socially acceptable manner.
Oral Presentation
In preparing this assignment, the presenting group should adopt the role of a consulting firm
hired by top management to perform a strategic analysis of the case corporation. The oral
presentation should be approximately 45 minutes in length. The use of visual aids (overheads,
charts, graphs) is recommended to enhance the clarity of your presentation. All members of a
group are expected to participate in the presentation. Students should avoid merely reading out
presentation material. In addition, the group will be evaluated on the cohesiveness and logic of
the arguments presented. Presentations are professional; dress is business casual.
Evaluation Criteria
•
•
•
•
•
•
Overview of firm and key strategic marketing issue
Identification and analysis of options
Choice and reasoning
Use of appropriate analytical tools, sensitivity analysis
Ability to answer questions, think on feet
Clarity of presentation
10
GUIDELINES FOR THE WRITTEN CASE REPORT
The written case assignment will provide you with the opportunity to use your conceptual,
analytic, and technical skills in applications to real-world strategic marketing situations. You
should adopt the role of a management consulting firm which has been asked to examine the
corporation in the case and provide: (a) judgments regarding the key marketing strategy issues
and problems facing the company with supporting evidence and sound logic; (b) alternative
courses of action open to the company and assessments of these; (c) specific recommendations
with a supporting plan of action.
An important source of information on how to conduct a strategic analysis for a case study is:
Boardman, Anthony E., Daniel M. Shapiro, and Aidan R. Vining (2004), “A Framework for
Comprehensive Strategic Analysis,” Journal of Strategic Management Education, 1 (2), 1-36.
Evaluation Criteria
• Central issues identified and communicated
• Logical and coherent analysis
• Effective use of facts and figures to support argument
• Graphics and tables clear, concise, and effective
• Recommendations follow from analysis
In evaluating your papers, the most important criteria I use, concerns the strength and logic of
your argument. That is, does your analysis make sense? Do you marshal facts from the case to
support your analysis? Do your recommendations follow from your analysis? Are you able to
rule out certain options as being illogical and counter productive? Fundamentally, you want to
lead your reader through a chain of reasoning that drives them toward the same conclusions
presented in your recommendations. Your paper will succeed if it accomplishes this task.
You are encouraged to use the various frameworks, concepts, and techniques discussed in the
course or otherwise known to you. Remember, however, that these are analytical tools to help
you in forming judgments about marketing strategy problems; they are not ends in themselves.
Emphasize your judgments (usually by using headings and sub-headings) and present data and
information from the case, along with supporting analysis, in support of these judgments.
However, most importantly, AVOID MERELY REHASHING THE FACTS!
Finally, the effective use of graphics and quantitative analysis can often help you to
communicate the point you are trying to get across to the reader. The key issue here is that
graphics should help clarify the information you are trying to communicate. Furthermore, you
should use the quantitative analysis as a vehicle for supporting a point, not as an end in itself.
Format
There is a limit of 15 pages (font size: 12 pt) for the main body of your paper. The purpose of
this is to encourage you to prioritize the material you wish to include in the final document.
Along with each report, you should provide a brief (1 page maximum) executive summary of
the key issues and associated recommendations discussed in further detail in the report. You can
include as many tables, charts, and graphics as you wish. Though grading will focus primarily
on the strength of analysis and strategic recommendations, writing form, grammar, punctuation
and professional presentation will be evaluated. Please include page numbers in your report.
11
GUIDELINES FOR THE TEXT PRESENTATIONS
The text presentation assignment will provide you with the opportunity to develop your
analytical and communication skills in combination with the understanding of original research
articles. You should adopt the role of the authors of the article, who have been asked to present
a summary of their paper and confront their findings with those of other papers.
Evaluation Criteria
Presentation of the central issue of the article
Identification of the theoretical roots of the article
Answering of the discussion questions
One-page written analysis
Format
The objective of the presentation is to stimulate a vibrant discussion and debate around
important issues in strategic marketing. Therefore, you will have a maximum of 45 minutes
for your presentation.
The use of visual aids (overheads, charts, graphs) is recommended in order to enhance the
clarity of your presentation. Each member of a group is expected to participate in the
presentation and/or the following discussion of the paper. You should avoid merely reading
out presentation material. In addition, the group will be evaluated on the cohesiveness and
logic of the arguments presented.
It is strongly suggested that you use no more than 6 slides and 10 minutes for each of the
articles you are presenting. These slides should briefly summarize the story you are going to
tell about the paper. The slides should be constructed in an easily readable font size and not be
overly complex or busy. There are many ways to structure your six slides; here is one
suggested way:
1. The first slide should describe the issue studied in the article and why it is important.
You may also want to preview an important result or implication. The idea is to
build interest in what you have to say.
2. The second slide should summarize how this issue has been studied and from which
theoretical background. For some presentations this slide may be replaced by a
brief comment during the first slide.
3.-5. The third, fourth, and fifth slides should summarize the text answers to the three
discussion questions. These slides should help the comparison between your text
and the texts presented by the other groups.
6. The final slide should tell why the results are important, with a particular emphasis on
their implications for marketing strategy. This slide can be key in stimulating
discussion and interest. You should view it as a discussion starter.
At the end of your presentation you should spend about 5 to 10 minutes comparing the four
different articles.
In addition to your presentation, you are responsible for a 15-page written analysis of your
articles. The final version of the analysis is due, for all the groups on December 20th. The
structure of the paper should imitate the structure of your presentation.
12
CLASS SESSIONS AND ASSIGNMENTS
SESSION #1: Friday, September 20: Introduction to the Marketing Strategy Course
Read: Course syllabus.
Discussion Themes: What is Marketing Strategy?
Thursday, September 26, deadline for registration on MySES.
SESSION #2: Friday, September 27: Theoretical Lenses on Competition
Read: Sudharshan, Chapter 2.
Discussion Themes:
How to gain a competitive advantage?
Application: Toys “R” Us Japan. Introduction to the Case Method (Case 0)
Read: Case 0: Toys “R” US Japan (HBS Case 9-796)
In early 1991, Toys “R” Us seemed poised on the brink of a high-profile entry into the
world’s second largest toy market. A “category killer” that enjoyed phenomenal success in the
United States and Europe, Toy “R” Us had tried for several years to crack the lucrative but
forbidding Japanese market.
Case questions:
(1) Is Japan a good market for Toys “R” Us? (2) Is Toys “R” Us good
for Japan? (3) Has Toys “R” Us chosen the right entry strategy for the
Japanese market? Has it chosen the right partner?
Friday, October 4, No class (Department meeting)
SESSION #3: Friday, October 11: Identifying Market Opportunities: Forecasting and
Market Knowledge
Read: Sudharshan, Chapter 3.
Discussion Themes:
Understanding market opportunities. Forecasting market growth.
Scenario planning.
13
Application: Marketing Strategy and Competitive Advantage (Text Discussion 1)
Presentations:
1. Hunt, Shelby D. and Robert M. Morgan (1995), “The Comparative Advantage Theory
of Competition,” Journal of Marketing, 59(2): 1–15.
2. Porter, Michael E. (1996), “What is Strategy?” Harvard Business Review, 74(6): 61–
78.
3. Dickson, Peter Reid (1992), “Toward a General Theory of Competitive Rationality,”
Journal of Marketing, 56(1): 69–83.
4. Srivastava, Rajendra K., Tasadduq A. Shervani, and Liam Fahey (1998), “MarketBased Assets and Shareholder Value: A Framework for Analysis,” Journal of
Marketing, 62(1): 2–18.
Discussion Questions: What is marketing strategy? What are the main sources of a firm’s
competitive advantage? How does marketing contribute to a firm’s
sustainable competitive advantage?
SESSION #4: Friday, October 18: Product-Market Definition
Read: Sudharshan, Ch. 4; Furrer, Corporate Level Strategy, Ch. 3; Furrer et al., 2007.
Discussion Themes:
What is a product-market? What is the relationship between market
share and financial performance?
Application: Harley-Davidson (Case 1)
Read: Case 1. Harley-Davidson: Chasing a New Generation of Customers (KEL 742)
In July 2007, Mark-Hans Richer became Harley-Davidson’s first chief marketing officer. Its
riders were aging, which the company saw as an existential threat. Although Harley-Davidson
had a record sales year in 2006 and had maintained a commanding share of the heavyweight
motorcycle market for the previous decade, it needed to take new action to sustain its growth.
Richer needed to deliver a new generation of riders and a more diverse customer base, all
without losing current Harley-Davidson customers. He also knew that he could not relax: the
average tenure of a CMO in 2007 was only 27 months and a complete new product
development cycle would take a minimum of four years.
Case questions:
(1) What is Harley-Davidson product-market? (2) Should HarleyDavidson focus on one or several market segment? (3) How to sustain
growth?
14
SESSION #5: Friday, October 25: Managing Relationships
Read: Sudharshan, Ch. 5 and 6.
Discussion Themes:
The strategic importance of channel relationships. Commitment, trust,
and customer satisfaction.
Application: Marvel Enterprises (Case 2)
Read: Case 2. Marvel Enterprises, Inc. (HBS 9-505-001)
The management team of Marvel Enterprises, known for its universe of superhero characters
that includes Spider-Man, the Hulk, and X-Men, must reevaluate its marketing strategy. In
June 2004, only six years after the company emerged from bankruptcy, Marvel has amassed a
market value of more than $2 billion. Originally known as a comic book publisher, the
company now also has highly profitable toy, motion picture, and consumer products licensing
operations. However, doubts about Marvel’s business model and its growth potential continue
to exist.
Case questions:
(1) Had Marvel’s winning streak been just a fluke? (2) Was Marvel’s
success dependent on a limited set of blockbuster characters, most
notably Spider-Man, and should Marvel continue to capitalize on
those characters? (3) Or was it time to seek growth in a larger set of
lesser known characters? (4) In exploring growth opportunities, was it
wise for Marvel to venture outside its current business model and
move into more capital-intensive activities? (5) What marketing
strategy would allow Marvel to sustain its success in the coming
years?
Friday, November 1, No class (All Saints’ Day)
SESSION #6: Friday, November 8: Competition and Rivalry Analysis
Read: Sudharshan, Ch. 7; Furrer and Thomas, 2000.
Discussion themes:
Competitive analysis; the dynamics of rivalry; the determinants of the
rivalry intensity.
Application: Marketing Strategy and Competitive Advantage (Text Discussion 2)
Presentations:
1. Morgan, Robert M. and Shelby D. Hunt (1994), “The Commitment–Trust Theory of
Relationship Marketing,” Journal of Marketing, 58(3): 20–38.
15
2. Doney, Patricia M. and Joseph P. Cannon (1997), “An Examination of the Nature of
Trust in Buyer–Seller Relationships,” Journal of Marketing, 61(2): 35–51.
3. Rust, Roland T., Katherine N. Lemon, and Valarie A. Zeithaml (2004), “Return on
Marketing: Using Customer Equity to Focus Marketing Strategy,” Journal of
marketing, 68(1): 109–127.
4. Vargo, Steve L. and Robert F. Lusch (2004), “Evolving to a New Dominant Logic for
Marketing,” Journal of Marketing, 68(1): 1–17.
Discussion Questions: What are the key antecedents and consequences of relationship
marketing? What is the value of a customer? Should firms establish
long-term relationships with every customer?
Friday, November 15, No class (Dies Academicus)
SESSION #7: Friday, November 22: Portfolio Analysis and Multipoint Competition
Read: Sudharshan, Ch. 9; Furrer, Corporate Level Strategy, Ch. 12.
Discussion themes:
The relationship between marketing strategy and corporate-level
strategy. Brand portfolio and portfolio management.
Application: Swatch Group (Case 3)
Read: Case #3, The Swatch Group (HBS 9-512-052)
In March 2011, Nicolas Hayek, the CEO of the leading Swiss watch manufacturer Swatch
Group, reflected on the positioning of Omega, its revived flagship brand. Which marketing
strategy would best allow it to confront its main competitor Rolex? And how would potential
adjustments to Omega's product, pricing, distribution, and promotion strategies impact the
sales of the Swatch Group's other 18 watch brands?
Case questions:
(1) Which marketing strategy would best allow it to confront its main
competitor Rolex? (2) How would potential adjustments to Omega’s
product, pricing, distribution, and promotion strategies impact the
sales of the Swatch Group's other 18 watch brands?
SESSION #8: Friday, November 29: Benchmarking and Imitation Strategies
Read: Sudharshan, Ch. 10.
Discussion themes:
The different types of benchmarking. Who to imitate?
16
Application: Multipoint (or Multimarket) Competition (Text Discussion 3)
Presentations:
9. Yu, Tieying, Mohan Subramaniam, and Albert A. Cannella, Jr. (2009), “Rivalry
Deterrence in International Markets: Contingencies Governing the Mutual
Forbearance Hypothesis,” Academy of Management Journal, 52(1), 127-147.
10. Young, Greg, Ken G. Smith, Curtis M. Grimm and Daniel Simon (2000),
“Multimarket Contact and Resource Dissimilarity: A Comparative Dynamics
Perspective,” Journal of Management, 26(6), 1217-1236.
11. Golden, Brian R. and Hao Ma (2003), “Mutual Forbearance: The Role of Intrafirm
Integration and Rewards,” Academy of Management Journal, 28(3), 479-493.
12. Gimeno, Javier and Carolyn Y. Woo (1999), “Multimarket Contact, Economies of
Scope, and Firm Performance,” Academy of Management Journal, 43(3), 239-259.
Discussion Questions: How does multipoint competition influence the rivalry intensity
between firms? What are the advantages and disadvantages of
multipoint competition? How does multipoint competition affect
companies’ marketing strategy?
SESSION #9: Friday, December 6: Timing
Read: Sudharshan, Ch. 11.
Discussion themes:
First mover and second mover advantages. Order of entry and
performance. Leapfrogging.
Application: Château Margaux (Case 4)
Read: Case #4, Château Margaux: Launching the Third Wine (HBS 9-513-107)
Château Margaux, one of only five prestigious estates in the Bordeaux Medoc wine region to
have been classified as a “first-growth,” is facing a host of strategic decisions in early 2013.
Up until this point the estate had been selling two red wines, a first wine whose retail price
often exceeded US$ 1000 a bottle, and a second wine whose retail price often exceeded US$
200 a bottle. Owner Corinne Mentzelopoulos and her management team were now preparing
to launch a new third wine made from the estate’s production not used to make the first two.
They have to decide whether the best go-to-market strategy is to sell the third wine to the
local Bordeaux merchants and relinquish commercialization to them or to devise a complete
marketing plan for the new wine that includes: target market selection, positioning, quantity
to release, pricing, channel structure and brand name. Mentzelopoulos was considering the
optimal marketing for the third wine in light of bold moves by other first-growths, such as the
purchase of vineyards in the Bordeaux region, global expansion, and deviation from the
centuries old tradition of selling wine in the futures market.
Case questions:
(1) Who should be the target market for the third wine? What should
be its brand image relative to the château’s first and second wine?
17
What are the best channel and communication approaches? What
price should the consumer expect to pay for a bottle?
SESSION #10: Friday, December 13: Market Channels.
Read: Sudharshan, Chapter 12.
Discussion themes:
Channel choice. Managing supplier relationships
Application: Nestlé - Perrier (Case 5)
Read: Case #5, Nestlé: Divesting Perrier? (RUN 308-063-1)
The case describes the problems that Nestlé Waters had when trying to restructure its Perrier
subsidiary in 2004. The conflict with Perrier workers and trade unions triggered Nestlé
thoughts about divesting Perrier.
Case questions:
(1) Does Perrier fit in Nestlé Waters’ brand portfolio? (2) Is Nestlé the
best parent for Perrier? (3) Should Nestlé restructure, relocate, sell, or
close Perrier? (4) What would be the marketing implications for the
value of the brand, for Nestlé Waters?
SESSION #11: Friday, December 20: Market Offerings.
Read: Sudharshan, Ch. 13–14.
Discussion themes:
Coverage of the offerings. Transaction facilitators. Competitive
positioning in the offerings space
Application: Review questions
18