Ivey Publishing

Services Marketing: People, Technology, Strategy

Lovelock, C., Wirtz, J. Bansal H.S.,1/e (Canada, Pearson, 2008)
Prepared By Fabrizio Di Muro, Ph.D. Candidate (Marketing)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
New Perspectives on Marketing in the Service Economy

KIDS MARKET CONSULTING
Paul W. Beamish, Stephanie Taylor, Oleksiy Vynogradov

Product Number: 9B04M065
Publication Date: 11/23/2004
Revision Date: 10/15/2009
Length: 8 pages

The founder of Kids Market Consulting, a market research firm dedicated to the kids, tweens and teens segment, was faced with increasing competition and slowing revenue, and was exploring a variety of possibilities for the future strategic direction of the business. In particular, she had to formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, there was the existing relationship with her business partner, and Kids Market Consulting was part of his group of marketing firms. Any changes the founder chose had to respect this relationship and she was therefore restricted to a limited number of options. The over-arching corporate objective for the company was to defend the market from larger businesses who were trying to increase their share of the market research industry.

Teaching Note: 8B04M65 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Change; Strategy Development; Strategic Planning; Market Analysis
Difficulty: 4 - Undergraduate/MBA



TELUS MOBILITY - WHAT TO DO WITH MIKE
Donald W. Barclay, Jack Wong

Product Number: 9B02A010
Publication Date: 7/23/2002
Revision Date: 10/28/2009
Length: 20 pages

TELUS Corporation is a leading telecommunications company. The vice-president of sales and marketing has reviewed the company's existing strategy for Mike (an enhanced specialized mobile radio system based on integrated digital enhanced network). As a unique digital wireless network, Mike offered users the traditional features of personal communication services, plus the added functionality of a digital two-way radio. However, technological advantages do not always translate into market advantages. In light of the dynamic changes in the wireless industry (such as the emergence of new technologies), the vice-president is faced with the challenge of defining a market strategy to grow TELUS's Mike business.

Teaching Note: 8B02A10 (6 pages)
Industry: Information, Media & Telecommunications
Issues: High Technology Products; Telecommunication Technology; Market Strategy; Marketing Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Customer Behavior in Service Encounters

PRAEDA MANAGEMENT SYSTEMS INC.
Kenneth G. Hardy

Product Number: 9B06A003
Publication Date: 1/13/2006
Revision Date: 5/1/2014
Length: 8 pages

A venture fund has approached an entrepreneur to sell one of its poorly performing holdings, or if there is no reasonable sale opportunity, turn the company around. He finds no acceptable offers for the company. He searches to find more information on how buyers purchase and use the product, which is a software system for police and courts to lay charges and manage them across the court process. The case illustrates the leverage available from understanding customer budgeting and buying processes, and fitting the service to meet the mind of the customer.

Teaching Note: 8B06A03 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Marketing Planning; Consumer Behaviour; Market Strategy; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



DEXIT - A MARKETING OPPORTUNITY
Robin Ritchie, Sohail Lalani

Product Number: 9B05A002
Publication Date: 2/21/2005
Revision Date: 9/24/2009
Length: 15 pages

Dexit is a new electronic payment system that offers a convenient alternative to cash for small-value retail transactions. The chief executive officer is faced with some critical target market and marketing mix decisions as she prepares for launch. The situation is complicated by the fact that action is needed on two fronts: Dexit must not only recruit end-consumers to use the service, it also has to convince merchants to install the payment terminals. Since paying with cash is free, the company will need to persuade both groups that the added convenience of Dexit justifies a transaction fee. Although the concept appears to have good potential, the recent test market failures of two similar offerings suggest that success is far from guaranteed. The case reinforces the importance of solid consumer analysis when selecting a target market, demonstrates the concept of value to the customer, and provides a basis for discussing push versus pull marketing strategies.

Teaching Note: 8B05A02 (16 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Target Marketing; New Products; Marketing Management; Consumer Behaviour
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Developing Service Concepts: Core and Supplementary Elements

LOGITECH: LAUNCHING A DIGITAL PEN
Mark B. Vandenbosch, Ken Mark

Product Number: 9B03A002
Publication Date: 5/28/2003
Revision Date: 10/15/2009
Length: 10 pages

Logitech is an international company that designs and manufactures computer peripheral products. The retail pointing devices unit director is thinking about the development of the next generation of his device, the Logitech io Digital Pen. The digital pen is about to be launched in less than two months, and he is still unsure which features were valuable to potential users, who these potential users were and for which applications the digital pen could be used.

Teaching Note: 8B03A02 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Consumer Analysis; New Products
Difficulty: 4 - Undergraduate/MBA



ING BANK OF CANADA (B): THE FIRST TWO YEARS
Adrian B. Ryans

Product Number: 9B01A024
Publication Date: 8/28/2002
Revision Date: 12/7/2009
Length: 16 pages

In its first two years as a direct response retail bank in Canada, ING Bank of Canada attracted more than 160,000 customers and assets of Cdn$1.6 billion. Several other direct banks have entered the marketplace with similar services and the management team needs to consider the company's next strategic move. The team must decide whether to recommend an alliance that would place ING automated banking machines in Canadian Tire stores nationwide. This case is a supplement to ING Bank of Canada (A), product 9A99A010.

Industry: Finance and Insurance
Issues: Market Strategy; Services; Marketing Planning
Difficulty: 4 - Undergraduate/MBA



ING BANK OF CANADA (A): LAUNCH OF A DIRECT BANK
Adrian B. Ryans

Product Number: 9A99A010
Publication Date: 8/25/1999
Revision Date: 1/12/2010
Length: 20 pages

The management team at ING Bank of Canada was preparing to launch Canada's first discount bank. Initially, the bank planned to serve its customers using mail and telephone. Later, it planned to supplement the telephone banking service with an interactive voice response system and an Internet-based service. ING hoped to attract customers by offering significantly higher interest rates on its savings products than any of its competitors. There was some skepticism about the viability of the proposed business model. At the time of the case, the president and CEO of ING Bank was reviewing the proposed launch strategy.

Teaching Note: 8A99A10 (10 pages)
Industry: Finance and Insurance
Issues: Financial Institutions; Market Entry; Market Strategy; Product Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Distributing Services through Physical and Electronic Channels

PLACE YOUR "BET" ON INTERNET GAMING
Michael R. Pearce, Kevin Dennis

Product Number: 9B02A024
Publication Date: 11/29/2002
Revision Date: 10/28/2009
Length: 14 pages

Casino gaming companies such as MGM Mirage, Harrah's and Park Place Entertainment, in addition to their traditional land-based casino properties, must consider the potential impact of Internet gambling on their existing operations. It appears that several Internet gaming companies have been quite successful and that the global market potential could be significant. Each of the United States gaming companies has taken very conservative approaches to Internet gaming in an effort to maintain their long-standing relationships with their respective state gaming authority. However, non-traditional casino companies have developed off-shore Internet gaming operations to circumvent traditional land-based gaming regulations. Going forward, traditional gaming companies will need to consider the possible legalization of Internet gaming on a large scale and how they would respond.

Teaching Note: 8B02A24 (19 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Gambling; E-Business; Internet Marketing; Retailing
Difficulty: 4 - Undergraduate/MBA



INTERNATIONAL DATA CORPORATION (CANADA) LTD.
Kenneth G. Hardy, Paul Heydon

Product Number: 9A99A035
Publication Date: 5/2/2000
Revision Date: 1/13/2010
Length: 30 pages

The director of sales and marketing for the Canadian subsidiary of International Data Corporation has steadily increased revenues over a two-year period. IDC Canada was the market leader in Canadian IT vendor market intelligence, and the director wonders how to maintain the growth. The director faces issues from new product development to customer targeting. The complexities of managing and growing a small international subsidiary of a very large business are explored in the context of entrepreneurship, marketing and sales management.

Teaching Note: 8A99A35 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Sales Management; Marketing Management; Information Technology; Consumer Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Exploring Business Models: Pricing and Revenue Management

GLOBAL HEALTHCARE EXCHANGE CANADA: TRADE EXCHANGE ADOPTION
Terry H. Deutscher, Dana Gruber

Product Number: 9B02A023
Publication Date: 12/9/2002
Revision Date: 10/28/2009
Length: 14 pages

Global Healthcare Exchange Canada is a business-to-business exchange that connects hospitals and their major suppliers through an electronic procurement process. Founded as a subsidiary of its global parent, the exchange has become the leading health-care exchange in the country, but it is still far short of break-even. It must develop a compelling value proposition if it is going to drive adoption among hospitals and suppliers to the target levels. To do so, it must overcome considerable inertia among hospitals that are often very reluctant to change from frequently inefficient purchasing processes. Although there are major benefits to be realized from automating supply chain operations in the industry, the adoption decision process among hospitals is highly complex, but very idiosyncratic. In confronting these challenges, the exchange must also re-examine its own business model, in particular its pricing strategy for both suppliers and hospitals.

Teaching Note: 8B02A23 (15 pages)
Industry: Health Care Services
Issues: E-Business; Market Strategy; Purchasing; Marketing Planning
Difficulty: 4 - Undergraduate/MBA



YIELD MANAGEMENT AT AMERICAN AIRLINES
P. Fraser Johnson, Robert Klassen, John S. Haywood-Farmer

Product Number: 9B00D003
Publication Date: 3/29/2000
Revision Date: 1/29/2002
Length: 7 pages

American Airlines is a widely cited leader in the development and implementation of yield management practices. This case is based on a training exercise used at American Airlines to introduce managers to their yield management system. Participants are given the responsibility for a single flight from Dallas-Fort Worth, Texas to Miami, Florida and are required to make a series of sequential booking decisions in real time. The objective of the exercise is to maximize total revenue for the flight, after taking into account no-shows and penalties. De-briefing following the exercise provides an opportunity to discuss both the strategic and tactical issues that arise when applying yield management systems in service firms. The case is designed for use in a service management elective course or in a service operations course and is intended to expose students to yield management by giving them hands-on experience managing bookings for a flight. The game takes approximately 50 minutes to play, leaving approximately 30 minutes for class discussion. Ideally, a supplemental reading dealing with yield management should be assigned with the case in order to provide background theory on yield management and to describe the complexities of a yield management system.

Teaching Note: 8B00D03 (20 pages)
Industry: Transportation and Warehousing
Issues: Planning; Pricing Strategy; Capacity Analysis; Services
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Educating Customers and Promoting the Value Proposition

LONDON JETS
Michael R. Pearce, Joel Bycraft, Chad Hensler

Product Number: 9B02A022
Publication Date: 11/29/2002
Revision Date: 10/28/2009
Length: 11 pages

The marketing manager for a hockey team has been told by senior management that revenues for the next season must increase or the franchise will be sold. The previous year's high-budget advertising campaign did not bring in the single-ticket sales results he expected. A database of past ticket holders is available and the question arises how to use this database. Using pivot tables, and recency, frequency and monetary value analyses, he must determine how to increase the return on the marketing investment. An Excel spreadsheet, product 7B02A022, is also available.

Teaching Note: 8B02A22 (26 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Database Marketing; Sports Marketing; Analysis; Direct Marketing
Difficulty: 4 - Undergraduate/MBA



LIVING ARTS CENTRE OF MISSISSAUGA: CONDENSED VERSION
Michael R. Pearce

Product Number: 9B02A027
Publication Date: 2/6/2003
Revision Date: 10/29/2009
Length: 21 pages

The marketing director of a major multicultural arts and entertainment complex is reviewing many different market studies. His challenge lies in how to distinguish the centre's services from other discretionary purchases. He must resolve positioning, programming, communications, and fundraising issues prior to the upcoming launch. (A higher price applies to this case due to colour exhibits.)

Teaching Note: 8A96A01 (4 pages)
Industry: Arts, Entertainment, Sports and Recreation
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Positioning Services in Competitive Markets

MMI PRODUCT PLACEMENT, INC.
Robin Ritchie, Ramasastry Chandrasekhar

Product Number: 9B07A006
Publication Date: 4/2/2007
Length: 9 pages

The president of a national placement agency is preparing to make a final pitch to sign Greyhound Canada as a client. Greyhound wants to reposition its brand as a mainstream travel option, particularly for suburban commuters, and needs cost-effective ways to get its message to consumers. The company views product placement as a viable tool for building brand awareness, but worries about losing control over its brand image. Even more serious are concerns about the absence of reliable metrics to assess the overall effectiveness of product placement. The case covers fundamentals of product placement, particularly with respect to strengths and weaknesses, and provides an excellent basis for discussing its value as part of an overall marketing communications strategy.

Teaching Note: 8B07A06 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Brand Positioning; Marketing Communication; Advertising
Difficulty: 4 - Undergraduate/MBA



LAUNCH OF MBANX
Donald W. Barclay

Product Number: 9A98A025
Publication Date: 9/23/1998
Revision Date: 1/22/2010
Length: 19 pages

From a strategic perspective, the Bank of Montreal, a major Canadian bank, has committed to entering the 'virtual banking' marketplace in Canada. There is also the potential to launch later in the USA and Mexico. They plan to do this in a preemptive fashion to gain first mover advantage. This means no extensive pilots and a short time to launch. The decision makers are charged with developing a complete launch strategy. They have two years of tentative ideas to work with, but a number of major decisions on product line, pricing, communications, salesforce, etc. are still to be made. The purpose of the case is to introduce students to the entire scope of marketing decisions to be made in such a situation, including fundamental decisions around targeting and positioning. It also drives students to make decisions in the face of incomplete information and short time horizons. To date, the case has been successfully used to set the stage for marketing management courses, and to kick off marketing management modules in executive development programs. (A nine-minute video can be purchased with this case, video 7A98A025.)

Teaching Note: 8A98A25 (11 pages)
Industry: Finance and Insurance
Issues: Consumer Marketing; Market Entry; Market Strategy; New Products
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
Designing and Managing Service Processes

WIND TO ENERGY: W2E
Kenneth G. Hardy, Ken Mark, Jordan Mitchell

Product Number: 9B05A004
Publication Date: 1/31/2005
Revision Date: 9/24/2009
Length: 20 pages

An engineer for Wind to Energy has led the creation of the North American division of a German start-up company that designs wind-energy electric power generation units - wind turbines. The engineer and his fellow engineers have licensed the technology to a small-share assembler of wind turbines and are about to receive their first payment from this firm. As they look ahead, they see opportunities for revenue in possibly supplying spare parts to wind farms, or even operating their own wind farm. The challenge is to focus this start-up company.

Teaching Note: 8B05A04 (8 pages)
Industry: Utilities
Issues: Market Strategy; Market Entry; Vendor Selection; Visioning
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Balancing Demand and Productive Capacity

FAMILY PIZZA NIGHT AT THE BALA BAY INN
John S. Haywood-Farmer, Amanda Balodia, Sara McCormick

Product Number: 9B04D007
Publication Date: 4/5/2004
Revision Date: 10/9/2009
Length: 9 pages

During the summer, a popular hotel and restaurant must turn away customers whenever it offers its once a week family pizza buffet. With summer season fast approaching, the managers and owners of Bala Bay Inn must evaluate the process and capacity of the restaurant and identify bottlenecks in the process to determine what can be done to accommodate the demand.

Teaching Note: 8B04D07 (7 pages)
Industry: Accommodation & Food Services
Issues: Process Design/Change; Capacity Analysis; Bottlenecks; Process Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Crafting the Service Environment

MARSHALLS INTERNATIONAL, INC.
Michael R. Pearce, Samira Amini

Product Number: 9B03A019
Publication Date: 9/25/2003
Revision Date: 10/15/2009
Length: 12 pages

Warners Inc. is a world-leading packaged goods company that supplies a large number of packed goods to Marshalls International Inc., a leading mass merchandiser. The health and beauty category manager at Warners has been asked to examine its hair care category for opportunities to allow Marshalls to achieve leadership position in the category among its competitors. He must examine the leading retailers in the category and their marketing strategies, and compare them against Marshalls' strategy.

Teaching Note: 8B03A19 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Retail Marketing; Category Management; Consumer Marketing; Distribution
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Managing People for Service Advantage

PROSOFT SYSTEMS CANADA (A)
Terry H. Deutscher, Elizabeth O'Neil

Product Number: 9B03A001
Publication Date: 6/26/2003
Revision Date: 10/15/2009
Length: 20 pages

Prosoft Canada is a major competitor in the enterprise software business. The company is planning to bid on a large contract with the city of Winnipeg. Prosoft is considering bidding on the project in a partnership with a major systems integrator, but the company has just been approached by two other partners about including them in their bidding process. Prosoft must decide whether to bid independently or in one or more alliances. The complexity of forming and managing alliances in the enterprise software business is explored. The supplement Prosoft Systems (B), product 9B03A003, poses the issue of developing an alliance policy for guiding similar decisions.

Teaching Note: 8B03A01 (16 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Alliances; Market Strategy; Sales Strategy; Industrial Marketing
Difficulty: 4 - Undergraduate/MBA



PROSOFT SYSTEMS CANADA (B)
Terry H. Deutscher, Elizabeth O'Neil

Product Number: 9B03A003
Publication Date: 6/26/2003
Revision Date: 10/15/2009
Length: 2 pages

This is a supplement to Prosoft Systems Canada (A), product 9B03A001. A few months after the bidding alliance decision, the newly-appointed director of alliances at Prosoft must review the bid in an effort to develop an alliance policy for the business.

Teaching Note: 8B03A01 (16 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Industrial Marketing; Alliances; Sales Strategy; Market Strategy
Difficulty: 4 - Undergraduate/MBA



A.T. KEARNEY AND THE NEW DEFINING ENTITY
Donald W. Barclay, Michael J. Carter

Product Number: 9A98A002
Publication Date: 2/2/1998
Revision Date: 1/22/2010
Length: 16 pages

The acquisition of A.T. Kearney Ltd., an international management consulting firm, by Electronic Data Systems (EDS), an information systems company, raised many issues. Among these was the issue of how to leverage the merger in terms of providing strategic consulting and information systems solutions to clients. Should the two firms cross-sell each other's services? Should A.T. Kearney call on existing EDS clients and vice-versa? Should the two firms work together to secure new clients? The case focuses on the chairman of A.T. Kearney Ltd. in Canada as he prepares to deal with the above issue. Once this issue has been worked through, there is an opportunity to deal with sales management issues arising from this decision. For example, if cross-selling is to be encouraged, what incentive scheme might be appropriate? The purpose of the case is to show how sales management decisions must be driven by marketing strategy and the desired customer interface that marketing strategy implies.

Teaching Note: 8A98A02 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Consolidations and Mergers; Relationship Management; Sales Strategy; Consulting
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Managing Relationships and Building Loyalty

PENNZOIL-QUAKER STATE CANADA: THE ONE-TO-ONE DECISION (A)
Terry H. Deutscher, Christopher Spalding

Product Number: 9B04A010
Publication Date: 5/14/2004
Revision Date: 10/7/2009
Length: 22 pages

The director of Lubricants business for Pennzoil-Quaker State Canada is faced with a significant challenge - overcoming the apathy that many consumers had about changing their motor oil. Increasing the frequency of oil changes and improving retention of its customers was critical for the financial success of the company. In response to this challenge, the director had to make a recommendation on adoption and implementation of a major new promotional program. The program, called One-to-One, was designed to create closer relationships among consumers, retailers and Pennzoil-Quaker State. Making the program work required active cooperation from the retail installers who actually performed the oil changes. The supplement Pennzoil-Quaker State Canada: The One-To-One Decision (B), product 9B04A011, focuses on the 240-day field trial of the program.

Teaching Note: 8B04A10 (16 pages)
Industry: Retail Trade
Issues: Retail Marketing; Marketing Communication; Sales Promotion; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



PENNZOIL-QUAKER STATE CANADA: THE ONE-TO-ONE DECISION (B)
Terry H. Deutscher, Christopher Spalding

Product Number: 9B04A011
Publication Date: 5/14/2004
Revision Date: 10/7/2009
Length: 4 pages

This supplement to Pennzoil-Quaker State Canada: The One-To-One Decision (A), product 9B04A010 looks at the 240-day field trail of a program designed to build loyalty among consumers, and to increase frequency of oil changes.

Teaching Note: 8B04A10 (16 pages)
Industry: Retail Trade
Issues: Retail Marketing; Marketing Communication; Sales Promotion; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



AIR MILES (A)
John R. Kennedy, Carol Steer

Product Number: 9A94A002
Publication Date: 9/8/1994
Revision Date: 2/19/2010
Length: 11 pages

This two-part case, (see Air Miles (B)), is about decisions relating to the introduction of AIR MILES (TM), a loyalty incentive program, to the Canadian market. An integral part of the case is a three minute video, Air Miles 1992 Commercials - Video, which can be purchased with the case. The cases are designed to be taught in one class period. The decision point for the first part of the case takes place two weeks before the initial launch of the AIR MILES (TM) program. The student is asked to assess the marketing strategy, with particular emphasis on the efficacy of the planned television commercials.

Teaching Note: 8A94A02 (13 pages)
Industry: Transportation and Warehousing
Issues: Marketing Management; Advertising Strategy; Advertising Effectiveness
Difficulty: 4 - Undergraduate/MBA



AIR MILES (B)
John R. Kennedy, Carol Steer

Product Number: 9A94A003
Publication Date: 9/8/1994
Revision Date: 2/19/2010
Length: 5 pages

This two-part case, (see Air Miles (A)), is about decisions relating to the introduction of AIR MILES (TM), a loyalty incentive program, to the Canadian market. In the first case, the student is asked to assess the marketing strategy, with particular emphasis on the efficacy of the planned television commercials. The second part of the case takes place three months later. Response to the launch had resulted in high target market awareness, but lower conversion rates than had been planned for. Research was commissioned and the research report has just been received. The student is asked to examine the research and make recommendations on marketing strategy, again with particular emphasis on advertising.

Teaching Note: 8A94A02 (13 pages)
Industry: Transportation and Warehousing
Issues: Marketing Management; Advertising Strategy; Advertising Effectiveness
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Achieving Service Recovery and Obtaining Customer Feedback

WESTJET: SEPTEMBER 11TH, 2001
Christine Pearson, Ken Mark

Product Number: 9B03C026
Publication Date: 5/28/2003
Revision Date: 10/17/2009
Length: 7 pages

WestJet is a regional airline service. During the early afternoon of September 11, 2001, the director of customer service is on her way to an emergency meeting. For the first time ever, all civilian airline flights across North American airspace are suspended. WestJet guests and employees are stranded across the country without any indication as to when flights will resume. In addition, there are grounded employees that are dealing with a tremendous amount of anxiety; the airline industry is tightly knit and rumors run rampant across airlines. The director of customer service must decide what should be done first.

Teaching Note: 8B03C26 (5 pages)
Industry: Transportation and Warehousing
Issues: Stakeholder Analysis; Uncertainty; Crisis Management
Difficulty: 4 - Undergraduate/MBA



EURO-AIR (A)
Paul W. Beamish

Product Number: 9A99M015
Publication Date: 6/24/1999
Revision Date: 1/18/2010
Length: 7 pages

A North America-based representative of a major European airline has just received a letter from an unhappy customer detailing a very large number of service problems. A quick check had revealed that this premium-paying customer's complaints were all valid. A meeting is planned with the customer. Before this, the airline representative must decide (A) what to say in response, and (B) what, if any, compensation should be offered. Internally, there was a need (C) to resolve what their organization should learn from this experience, both from a subsidiary and parent company perspective, and the implications on their participation in the Crown Alliance. This case raises many important questions regarding service recovery, communications, and non-equity alliances.

Teaching Note: 8A99M15 (11 pages)
Industry: Transportation and Warehousing
Issues: Alliances; Service Quality; Compensation; Communications
Difficulty: 4 - Undergraduate/MBA



EURO-AIR (B): TRAVEL TO HONG KONG
Paul W. Beamish

Product Number: 9A99M044
Publication Date: 12/17/1999
Revision Date: 1/18/2010
Length: 2 pages

This supplement to the Euro-Air (A) case, 9A99M015, serves to contrast what competitor airlines do with respect to service recovery and communication. The larger issue relates to our ability to use these two short cases to explore the nature and limitations of certain non-equity international alliances.

Teaching Note: 8A99M15 (11 pages)
Industry: Transportation and Warehousing
Issues: Alliances; Service Quality; Communications; Compensation
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Improving Service Quality and Productivity

MICROSOFT CANADA: MARKETING XBOX
Michael R. Pearce, Tanya Mark

Product Number: 9B03A023
Publication Date: 11/10/2003
Revision Date: 10/15/2009
Length: 26 pages

The group product manager for Xbox Canada was working on his marketing plan for the product's second year in the Canadian market. Xbox is a video game console and trailed Sony's PlayStation 2 in the marketplace. The group product manager must present his plan at the Microsoft Global Briefing. He knew the gaming market was turbulent and fickle and he wondered what he might do as an encore to the Xbox launch program.

Teaching Note: 8B03A23 (11 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Consumer Marketing; Competitor Analysis; Consumer Analysis; Marketing Planning
Difficulty: 4 - Undergraduate/MBA



BLUE MOUNTAIN RESORTS: THE SERVICE QUALITY JOURNEY
P. Fraser Johnson, Mark Sheppard

Product Number: 9B00D016
Publication Date: 10/20/2000
Revision Date: 10/18/2002
Length: 20 pages

Blue Mountain Resorts had been driving its business with a service quality program for several years, which the vice-president of human resources was responsible for coordinating. With a new ski season underway, and the critical Christmas season approaching, he wanted to continue progress of the program by introducing a new set of initiatives. He had recently gathered together a team of Blue Mountain Resort managers, from a variety of different areas in the company, to identify opportunities to improve service quality. The group provided three proposals that he felt warranted consideration. At the upcoming executive team meeting, he would be expected to set the priorities for the coming year and recommend what action, if any, should be taken for each. He had to decide which programs made the most sense for immediate action and which ones required additional study and analysis. Each of the proposals affected different parts of the organization, so he also needed to be concerned about who else in the company should be involved in further evaluation and implementation.

Teaching Note: 8B00D16 (14 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Continuous Improvement; Cost/Benefit Analysis; Service Operations; Service Quality
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Organizing for Change Management and Service Leadership

MICROSOFT CANADA: SALES & PRODUCT MANAGEMENT WORKING TOGETHER
Donald W. Barclay, Ken Mark

Product Number: 9B05A015
Publication Date: 9/1/2005
Revision Date: 9/24/2009
Length: 4 pages

Due to differences in incentive compensation, work experience, and objectives, sales and marketing, in many organizations often clash. At Microsoft Canada, the national sales manager, Home & Entertainment Division and the group product manager for PC marketing are considering investing a recurring $1 million a year - 10 per cent of their combined promotional budget - to produce and maintain a consumer-focused website, Microsoft Home Magazine. This proposed investment comes at a time where sales growth is slowing in the firm's PC business. As a surprising twist for students, this case is unique in the sense that it highlights an example where sales and marketing work together to achieve a common goal.

Teaching Note: 8B05A15 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Sales Management; Marketing Management; Conflict Resolution
Difficulty: 4 - Undergraduate/MBA