Ivey Publishing

Marketing: An Introduction

Armstrong, G., Kotler, P.,10/e (United States, Pearson, 2011)
Prepared By Seung Hwan (Mark) Lee, PhD Candidate (Marketing)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Marketing: Creating and Capturing Customer Value

MICROSOFT AND THE XBOX 360 RING OF DEATH
Gloria Barczak, David T.A. Wesley

Product Number: 9B10A005
Publication Date: 4/19/2010
Length: 16 pages

The case chronicles Microsoft's difficulties with the Xbox 360 home video game console. Microsoft launched the Xbox 360 one year ahead of the competition, and used its advantage to gain a solid lead in the market for next generation video game consoles. Despite early technical problems, users were willing to accept a certain degree of unreliability because the Xbox 360 was the only high definition console on the market. Microsoft also had valuable game franchises. To play any of the exclusive video game content available for the Xbox 360, users had no choice but to buy a system. However, Microsoft's early lead quickly disappeared after Nintendo's Wii become all the rage, especially among families and casual gamers. Sony also began to catch up to its Redmond rival following media reports that the PlayStation 3 was far more reliable. When Toshiba abandoned HD-DVD, a high definition movie format supported by Microsoft, Sony's Blu-Ray players (including the PlayStation3) became the de facto standard. Finally, Sony began to release its own exclusive games and began to quickly close the gap between its online service and Microsoft's Xbox Live. Microsoft's inability to resolve the quality problems that had plagued the Xbox 360 since its launch caused a loss of goodwill among its core customers. By extending the console's warranty to an unprecedented three years, Microsoft was able to allay the fears of some buyers. Nevertheless, by the end of the case, Microsoft has fallen to second place in overall console sales and third place in monthly sales. Moreover, it was unable to reverse the huge losses that Microsoft's gaming division had incurred every year since the launch of the original Xbox. The case may be used with The Launch of the Sony PlayStation 3 (Ivey case 9B07A014) and A Note on Computer Games (Ivey case 9B07A013).

Teaching Note: 8B10A05 (11 pages)
Industry: Manufacturing
Issues: Production Management/Control; Market Strategy; Quality Control; Product Design/Development; Northeastern
Difficulty: 4 - Undergraduate/MBA



CINEPLEX ENTERTAINMENT: THE LOYALTY PROGRAM
Kenneth G. Hardy, Renee Zatzman

Product Number: 9B08A008
Publication Date: 4/1/2008
Revision Date: 5/15/2009
Length: 17 pages

In 2007, the marketing director for Cineplex Entertainment is trying to decide whether or not to proceed with a loyalty program that would provide incentives for customers to see more movies and events, and spend more on concessions. An important by-product would be the collection of detailed customer buying data. She has crafted four possible combinations of rewards and received proposals from three suppliers with experience in managing customer data banks. She must decide the structure and richness of the program, the supplier, the likely response rate to determine financial feasibility, and whether to launch regionally or nationally.

Teaching Note: 8B08A08 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: New Product Launch; Customer Relationship Management; Loyalty Programs
Difficulty: 4 - Undergraduate/MBA



THE WII: NINTENDO'S VIDEO GAME REVOLUTION
Gloria Barczak, David T.A. Wesley

Product Number: 9B08A004
Publication Date: 1/31/2008
Revision Date: 2/26/2010
Length: 26 pages

In 2007, Nintendo's inexpensive and quirky Wii video game console had become all the rage. Despite its underpowered processor and comparatively basic graphics, it outsold both the Sony PlayStation 3 and the Microsoft Xbox 360. Nintendo's handheld system, known as the DS, also outsold Sony's more advanced PlayStation Portable. Nintendo's products were so successful, retail stores in North America and Japan quickly sold out whenever new shipments arrived, and many consumers were forced to pay premium prices on the grey market. The case examines the characteristics of a successful new product launch, particularly product features, brand loyalty, content availability, third-party support, and adherence to industry standards. The case also considers how radical innovations can be used to win market share from technically superior products focused on incremental innovations. Finally, a 4P marketing analysis is used to compare video game systems offered by Sony, Microsoft and Nintendo. The case may be used with The Launch of the Sony PlayStation 3 (Ivey Case 9B07A014) and A Note on Video and Computer Games (Ivey Case 9B07A013).

Teaching Note: 8B08A04 (10 pages)
Industry: Manufacturing
Issues: Market Strategy; New Products; Generating Profit from New Technology; Product Design/Development; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Company and Marketing Strategy: Partnering to Build Customer Relationships

GENICON: A SURGICAL STRIKE INTO EMERGING MARKETS
Allen H. Kupetz, Adam P. Tindall, Gary Haberland

Product Number: 9B10M041
Publication Date: 5/5/2010
Revision Date: 5/3/2017
Length: 13 pages

A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy.

Teaching Note: 8B10M41 (9 pages)
Industry: Manufacturing
Issues: China; International Expansion; Entrepreneurial Marketing; Emerging Markets; International Business
Difficulty: 4 - Undergraduate/MBA



ASIMCO TECHNOLOGIES: 2005
Xi (Lucy) Liu, Taehoo Kim, Liang Liu, Guangyu Nie, Wanhong Shao, Xiaotian Xie

Product Number: 9B10A001
Publication Date: 5/5/2010
Length: 15 pages

In April 2005, the chairman of ASIMCO Technologies, a company headquartered in China and supplying automotive components to both Chinese and global clients, was trying to decide on his company's reaction to the Chinese government's latest regulations on auto emissions. Guo-san (National Standards III) was to take effect on August 1, 2008. By that date, automakers would not be allowed to supply the Chinese market with non-Guo-san-compliant products. ASIMCO's major diesel engine customers had already sent requests for upgraded engine components to ASIMCO as well as other suppliers. While three technologies seemed to provide the Chinese market with a solution, divergent views existed among the management team as to where ASIMCO should focus to enhance the fuel systems that it supplied. The case can be used in an international marketing course (in sessions on product strategy in developing market or customer relations in industrial marketing).

Teaching Note: 8B10A01 (5 pages)
Industry: Manufacturing
Issues: China; Product Strategy; Automotive; Customer Relations; Tsinghua/Ivey
Difficulty: 4 - Undergraduate/MBA



STRATEGIC PLANNING AT APPLE INC.
Kyle Murray, Miranda R. Goode, Fabrizio Di Muro

Product Number: 9B09A026
Publication Date: 1/11/2010
Length: 12 pages

Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future hold for the computer giant in a rapidly changing world? How should the company allocate resources between its more traditional offerings (computers) and its newer products (iPods, iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should Apple's unique retail strategy be used to support the company's product decisions, and by capitalizing on new and emerging trends thus further maintaining its competitive advantage.

Teaching Note: 8B09A26 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Competitive Advantage; Strategic Planning; Retailing; New Products
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Analyzing the Marketing Environment

FOR THE LOVE OF GOOD FOOD: THE PLATETRACE PROJECT (A)
Nicole R.D. Haggerty, Andrea Jang, Rebecca Liu

Product Number: 9B09E006
Publication Date: 7/9/2009
Length: 16 pages

Vineland Research and Innovation Center, a not-for-profit organization looking to work with the Ontario local food industry, has requested two researchers to analyze the local food business landscape and propose a technology-driven solution that connects farmers in the Niagara region with buyers in Toronto. The case illustrates the challenges faced by each stakeholder in the local food supply chain, and allows students to analyze the farming and restaurant industries, assess the current Canadian market, and investigate technological advances that could enable improving the current local supply chain procurement and distribution model. This case allows students to identify competencies and gaps within the current environment, challenges facing the farming and restaurant communities, as well as opportunities to drive growth in a new market.

Teaching Note: 8B09E06 (14 pages)
Industry: Accommodation & Food Services, Agriculture, Forestry, Fishing and Hunting
Issues: Government and Business; Entrepreneurial Business Growth; Leveraging Information Technology; Generating Profit from New Technology
Difficulty: 4 - Undergraduate/MBA



ARTS & CRAFTS
Mark B. Vandenbosch, Nick Kuzyk

Product Number: 9B08A011
Publication Date: 8/14/2008
Length: 15 pages

The vice-president of marketing at Arts & Crafts was reflecting on the company's extremely successful year in the music business. New artists had been added to the company's roster, experiments with digital releases and marketing campaigns had been successful, and plenty of international licensing opportunities were emerging. In addition, one of the company's artists, Leslie Feist, had received multiple music awards. On the other hand, the music industry was facing some difficulties and most analysts predicted nothing but doom and gloom. The vice-president of marketing had to consider the future strategy of Arts & Crafts while considering the overall health of the industry.

Teaching Note: 8B08A11 (4 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Market Analysis; Marketing Management; Operations Management; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



BRAND IN THE HAND: MOBILE MARKETING AT ADIDAS
Andy Rohm, Fareena Sultan, David T.A. Wesley

Product Number: 9B05A024
Publication Date: 9/26/2005
Revision Date: 5/23/2017
Length: 22 pages

The Global Media manager for adidas International is responsible for developing and championing a new marketing strategy at adidas called brand in the hand that is based on the convergence of cell phones and wireless Internet. The case presents company background information, data on the penetration of mobile devices such as cell phones, the growth of global mobile marketing practices, and several mobile marketing communications campaigns that adidas launched in 2004, such as a mobile newsticker for the 2004 European soccer championship. The case then introduces a specific campaign - Respect M.E. - featuring Missy Elliott, a popular female hip-hop artist, and discusses the company's mobile marketing strategy to support MissyElliott's new line of sportswear. This case can be used to highlight the role of new technology in overall marketing strategy and integrated marketing communications.

Teaching Note: 8B05A24 (13 pages)
Industry: Manufacturing
Issues: Marketing Channels; Marketing Communication; International Marketing; Telecommunication Technology; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Managing Marketing Information to Gain Customer Insights

THE PIERCER
Colleen Sharen, Nicole Nolan

Product Number: 9B08M057
Publication Date: 4/7/2009
Length: 8 pages

Jessica Pierce and Ashley Mound have developed an innovative product for an entrepreneurship class assignment to be presented to potential investors. They now need to determine 1) which target markets have the most potential, 2) which distribution channels to use and 3) a sales volume estimate. The purpose of the case is to teach students how to use secondary research resources from a typical library to research the nature of the market for a new product. This case is appropriate for introductory business, entrepreneurship, business planning, introductory marketing or marketing research courses. It may also be used as an assessment tool.

Teaching Note: 8B08M57 (8 pages)
Industry: Retail Trade
Issues: New Venture Management; Digital Literacy; Marketing Research
Difficulty: 2 - Intro/Undergraduate



ONTARIO MACHINERY RING (A) - PROBLEM DEFINITION
Thomas Funk

Product Number: 9B04A021
Publication Date: 11/23/2004
Revision Date: 10/7/2009
Length: 9 pages

The Ontario Machinery Ring is a cooperative set up to perform a matchmaking service for farmers who want to have custom work done and farmers who want to do custom work. This concept is widespread in Europe but has not been tried in North America. The general manager of the organization has set up a prototype operation and is looking at expansion opportunities. Expansion will take more funds than are available and the general manager has sought financial assistance from the provincial Ministry of Agriculture and Food. Before committing funds to this project, the ministry requires marketing research to measure demand for the machinery ring concept. Supplemental cases, Ontario Machinery Ring (B) and (C), product 9B04A022 and 9B04A023 look at questionnaire development and data analysis.

Teaching Note: 8B04A21 (7 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Marketing Planning; Data Analysis; Sales Forecasting; Marketing Research
Difficulty: 4 - Undergraduate/MBA



KRAFT FOODS: THE COFFEE POD LAUNCH (A)
Robin Ritchie, Aleem Visram

Product Number: 9B06A019
Publication Date: 11/6/2006
Revision Date: 5/27/2014
Length: 19 pages

The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct-to-store delivery, and what forms of advertising and promotion to use. The case provides a basis for discussing consumer decision making, and stresses the importance of providing a clear incremental benefit when introducing a new product in an established category. It may be used independently or with the supplement, Kraft Foods: The Coffee Pod Launch (B).

Teaching Note: 8B06A19 (9 pages)
Industry: Manufacturing
Issues: New Products; Consumer Behaviour; Consumer Marketing; Marketing Management
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Understanding Consumer and Business Buyer Behavior

WALT DISNEY INTERNET GROUP JAPAN'S DIMO PROJECT
Philip Sugai

Product Number: 9B04A026
Publication Date: 11/23/2004
Revision Date: 10/7/2009
Length: 25 pages

The Walt Disney Internet Group Japan has recently launched an entirely new set of interactive mobile character/agents for the NTT DoCoMo iMode platform, called Dimo. Having built Japan's most successful mobile entertainment business using traditional Disney-branded characters and related content, these Dimo characters have been designed to go well beyond entertainment and become valuable guides, assistants and friends for users of the continuously evolving Mobile Internet and the increasingly complex tasks enabled by this platform. Although the Walt Disney Internet Group Japan team feels strongly that these types of character/agents will be the future of human-device interactions, subscription figures six months after Dimo's launch suggest that Japan's mobile consumers may not share this belief.

Teaching Note: 8B04A26 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: E-Business; Brand Management; Competitive Advantage; Consumer Behaviour
Difficulty: 4 - Undergraduate/MBA



SMART CO-OPERATIVE MARKETING
Kyle Murray, Jianping Liang

Product Number: 9B06A030
Publication Date: 1/30/2007
Length: 11 pages

The owner of Cherished Scrapbooks (CS) had just decided to go ahead with the development of an industry-level marketing program. In January 2006, the chief executive officer of SMART Group (SMART), a scrapbook trade group based in California, advised the owner of CS that the next step in the evolution of her business was to co-operate with her direct competitors. Initially the CS owner had rejected the idea out-right: The retailers in my area don't like me and besides it seems it would be contrary to my competitive position. However, just one month later, she asked SMART's CEO if he would come to Toronto to lead the formation of a cooperative marketing plan team for 68 scrapbook retailers within 100 miles of Toronto. She now wondered how she could help grow this grass roots initiative? SMART planned to launch 20 cooperatives in North America for 2006. How could CS's owner help support and grow this initiative? She also wondered what her exit strategy would be; she hoped to grow her business and either sell or franchise it.

Teaching Note: 8B06A30 (9 pages)
Industry: Retail Trade
Issues: Retailing; Exit Strategy; Retail Marketing
Difficulty: 4 - Undergraduate/MBA



GLOBAL SOURCES LTD. - THE EVOLUTION OF B2B
Allen Morrison, Tom Gleave, John Beck

Product Number: 9B01M065
Publication Date: 12/7/2001
Revision Date: 4/25/2012
Length: 21 pages

Global Sources Limited is Asia's leading publisher of business-to-business (B2B) trade-related magazines. In the latter half of the 1990s, the Internet became a powerful force for change in the business world, leading to an explosion of Internet-related activities by both traditional bricks and mortar companies, as well as countless upstart dot.coms. The chairman and chief executive officer of Global Sources had foreseen the opportunities afforded by the Internet early on, and had made it an integral part of the company's strategy. Currently, the level of activity in the B2B portal space has evolved so quickly that a noticeable degree of confusion among suppliers, buyers and investors about the merits and drawbacks of these portals has arisen. Moreover, the sustainability of these ventures has been brought into question, which is causing a dramatic reversal of fortunes for many companies. The result is that there are strong signs that the industry will experience a significant consolidation. This has left Global Sources chairman with the key challenge of generating greater visibility among users and potential users of the companies services, as well as greater interest from the investment community in order to remain viable. The company must be able to educate and convey its value proposition to its users, as well as determine whether it should continue to remain an independent player, purchase a competitor, or enter into a strategic alliance.

Teaching Note: 8B01M65 (21 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Managing Industry Change; Competitor Analysis; Strategic Positioning; Nanyang
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Customer-Driven Marketing Strategy: Creating Value for Target Customers

HYUNDAICARD'S MARKETING STRATEGY
Chansoo Park, Ronald D. Camp

Product Number: 9B09A028
Publication Date: 12/23/2009
Length: 20 pages

In the competitive South Korean credit card market, a review of the past decade of HyundaiCard's marketing strategies and evaluation of anticipated possible difficulties of being a market follower revealed several challenges for senior management. Despite a tremendously successful creative business model based on customer needs, innovative products and integration of online and offline customers, the company's performance had not progressed in the past seven years. HyundaiCard had difficulty relating its creative business model to the strong personas of the leading players in the credit card industry. How could HyundaiCard, a market follower, successfully position itself as a market leader? Could HyundaiCard's marketing strategy keep enhancing its competitive edge in the market? What future strategy would be best for HyundaiCard?

Teaching Note: 8B09A28 (9 pages)
Industry: Finance and Insurance
Issues: Market Analysis; Market Segmentation; Consumer Marketing; Credit Card Business; Marketing Management; Promotion Policy
Difficulty: 4 - Undergraduate/MBA



SHOPPERS STOP: TARGETING THE YOUNG
Shanker Krishnan, Ramasastry Chandrasekhar

Product Number: 9B09A011
Publication Date: 5/14/2009
Length: 23 pages

The case deals with how Shoppers Stop, a home-grown Indian retailer of branded apparel and accessories closely identified with the adult segment of customers for a decade and a half since inception, looked at the growing segment of the youth population. Against the backdrop of an aging demographic, particularly among countries in North America and Europe, India had an advantage of a largely young population. Thirty-five per cent of Indian were under 15 years of age and 70 per cent under 35 years of age - a profile likely to remain so for the next two decades. Topics of discussion include: Is there a risk for an adult company in targeting the young? Is there a risk in not targeting the young? Is there a business opportunity in the youth segment? What should Shoppers Stop do if it were to seize the opportunity? What is the addressable segment? Is a change in strategy required now or will tweaking the current strategy do? An interview with the Shoppers Stop chief executive officer is available on DVD.

Teaching Note: 8B09A11 (8 pages)
Industry: Retail Trade
Issues: Customer Relationship Management; Retailing; Market Segmentation
Difficulty: 4 - Undergraduate/MBA



KRAFT FOODS: THE COFFEE POD LAUNCH (A)
Robin Ritchie, Aleem Visram

Product Number: 9B06A019
Publication Date: 11/6/2006
Revision Date: 5/27/2014
Length: 19 pages

The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct-to-store delivery, and what forms of advertising and promotion to use. The case provides a basis for discussing consumer decision making, and stresses the importance of providing a clear incremental benefit when introducing a new product in an established category. It may be used independently or with the supplement, Kraft Foods: The Coffee Pod Launch (B).

Teaching Note: 8B06A19 (9 pages)
Industry: Manufacturing
Issues: New Products; Consumer Behaviour; Consumer Marketing; Marketing Management
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Products, Services, and Brands: Building Customer Value

THE ULTIMATE FIGHTING CHAMPIONSHIPS (UFC): THE EVOLUTION OF A SPORT
Matthew Thomson, Jesse Baker

Product Number: 9B10A012
Publication Date: 5/18/2010
Revision Date: 6/16/2010
Length: 16 pages

This case looks at the Ultimate Fighting Championships (UFC) and its parent company, Zuffa LLC (Zuffa), through the role of the recently hired chief marketing officer (CMO). As the CMO of the largest organization in the world's fastest growing sport, mixed martial arts, he faces many decisions about the future of the organization. The CMO must determine the best way to both manage the organization's ambitious international expansion initiatives and protect the UFC brand in new markets, while also preserving the experience for the league's core North American fan base. The CMO must evaluate the company's sponsorship relationships and develop a strategy to cope with increasing competition in both domestic and international markets.

Teaching Note: 8B10A12 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Brand Meanings; Equity; International Expansion; Celebrity CEO; Labour Relations
Difficulty: 4 - Undergraduate/MBA



MARKETING PLANNING AT JUST US! CAFÉS
Sara Loudyi, Julia Sagebien, Normand Turgeon, Ian McKillop

Product Number: 9B09A014
Publication Date: 9/10/2009
Revision Date: 6/9/2010
Length: 21 pages

Jeff and Debra Moore are the founders of Just Us!, a fair trade coffee cooperative, retailer and wholesaler. Just Us!’s mission is to actively promote fair trade and its benefits for producers in developing countries. The Moores have maintained a strong commitment to educating consumers while building strong brand identity and upholding constant growth. To support the main distribution channel in grocery stores, management opened four cafés (two each in Wolfville and Halifax) and distributed products on university campuses. Just Us!’s overall sales continued to grow, but sales were leveling off. In addition, the prevailing economic climate in Canada and increasing competition were worrying the founders. Recently, the Moores hired a new marketing director who was required to incorporate unique knowledge of fair trade practices, ethical purchasing and social entrepreneurship, combine it with typical growth-driven marketing decisions and ultimately propose a marketing plan that would consolidate coffee shop operations.

Teaching Note: 8B09A14 (15 pages)
Industry: Accommodation & Food Services
Issues: Services; Marketing Planning; Marketing Management; Fair Trade; Social Entrepreneurship
Difficulty: 4 - Undergraduate/MBA



NOTE ON THE GLOBAL HOTEL INDUSTRY
Gevork Papiryan

Product Number: 9B08M028
Publication Date: 5/28/2008
Length: 23 pages

The hotel industry has experienced tremendous growth since the 1980s and has emerged as a global industry. During the expansion period, multinational, multi-brand corporations, such as Hilton Hotels Corporation, were in the process of finding new markets and setting priorities. In emerging markets, such as Russia, most of the national hotel industry had been formed under the pressure of foreign hotel chains. In addition to competing with foreign firms in their own markets, local Russian companies were also planning to enter international markets. In this environment, where competition was strengthening within the global hotel industry and new players were emerging, a number of questions and challenges existed: 1) How could firms effectively leverage their competencies and increase their competitiveness? 2) Would the multinational hotel corporations continue to expand their brand portfolios? 3) How could hotel chains maintain their integrity during the expansion on a global scale? 4) What strategies might apply to convince Western hotel companies to compete in emerging markets? 5) Which direction would further develop the hotel industries in emerging economies?

Teaching Note: 8B08M28 (12 pages)
Industry: Accommodation & Food Services
Issues: Emerging Markets; Corporate Strategy; Industry Analysis; Globalization
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Developing New Products and Managing the Product-Life-Cycle

LAUNCH OF THE FORD FIESTA DIESEL: THE WORLD'S MOST EFFICIENT CAR
Francis Spital, David T.A. Wesley

Product Number: 9B10M040
Publication Date: 5/21/2010
Length: 20 pages

The case describes the challenges faced by Ford and other automobile manufacturers in an era of declining oil reserves and volatile fuel prices. The Ford diesel decision seems to reflect classic thinking constrained by mental models that were developed in a different world. Diesels constitute over 50 per cent of automobile sales in Europe, because fuel is extremely expensive there. If fuel gets extremely expensive in the United States, one would expect diesels to become more attractive. Yet Ford seems to be stuck in the old mental model that says Americans don't like diesels. Ford can't prove in a PowerPoint presentation that there is a big market for small diesels mostly because there are few small diesels available to U.S. consumers. But that traps them into a position where they will never lead the industry or innovate outside of current market and technology conditions.

Teaching Note: 8B10M40 (14 pages)
Industry: Manufacturing
Issues: Global Product; Product Strategy; New Products; Automotive; Northeastern
Difficulty: 4 - Undergraduate/MBA



GPS-TO-GO TAKES ON GARMIN
Donald A. Pillittere

Product Number: 9B09A027
Publication Date: 1/25/2010
Length: 9 pages

GPS-to-GO is a successful company that has a wealth of brilliant researchers and scientists who have created advanced global positioning systems (GPSs) for complex air-traffic control and logistics systems. Now, the vision of one of the up and coming managers is to use GPS-to-GO's knowledge to dominate the consumer market with premium-priced and feature-rich GPS units. Even though GPS-to-GO is far ahead in terms of GPS technology, the consumer market demands low-cost units and yearly follow-on products, which requires drastically different skills than GPS-to-GO's typical five- to 10-year cost-plus government projects. One of the managers is tasked with how to meet the cost target and market window for the new product, while working with the same engineering group that caused the unit manufacturing problem and launch delays in the first place. The key issues concern 1) engineering-centric companies and their culture, business strategies and processes for managing new product development 2) the implications these strategies and processes have on addressing the needs of customers, shareholders and employees in a totally new market segment 3) the role managers can play in making critical decisions with a keen eye on roadblocks to success, such as culture, inadequate skills and overly optimistic and myopic visionaries. The case includes an Excel spreadsheet with break-even scenarios that professors can use to complement the teaching note. The case is intended for courses in managing new product commercialization, managing technology and innovation, strategic thinking, operations management and leadership.

Teaching Note: 8B09A27 (9 pages)
Industry: Manufacturing
Issues: Costs; Break-Even Analysis; Management Behaviour; Manufacturing Strategy; Corporate Culture; New Product Development; Change Management; Management Style
Difficulty: 4 - Undergraduate/MBA



MICROSOFT WINDOWS: THE LAUNCH OF WINDOWS 7
Miranda R. Goode, Matthew Ball

Product Number: 9B09A023
Publication Date: 8/14/2009
Length: 25 pages

In early 2009, Microsoft began preparing for the launch of its next operating system, Windows 7. Successfully marketing Windows 7 had become essential for the company, which had faced numerous challenges in recent years, including a commercial and public relation failure of its last operating system, Windows Vista. While Windows 7 had received strong pre-release reviews, its success depended on Microsoft's ability to overcome the lingering skepticism and resentment of Windows Vista. The case presents students with the opportunity to perform a rich analysis of the difficulties in launching a new product following the commercial and public relations failure of the predecessor and provides a platform from which to explore the psychology (from both a consumer and managerial perspective) behind new product adoption. The case is structured to promote an analysis of Vista's relations failure using a psychological framework. Based on this analysis, students are challenged to devise a strategy for the launch of Windows 7 and to make decisions related to advertising communications, pricing, product, target market selection and brand image.

Teaching Note: 8B09A23 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Advertising; Marketing Communication; New Products; Consumer Behaviour
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Pricing: Understanding and Capturing Customer Value

HANSON PRODUCTION: PRICING FOR OPENING DAY
June Cotte, Peter Famiglietti

Product Number: 9B10A011
Publication Date: 5/21/2010
Length: 14 pages

The president of production at Hanson Productions, an off-Broadway production company, was faced with the same situation for every Broadway production: where to locate, how many seats, what to charge and how to promote and market the production. There are three separate venues, with three separate value propositions to the studio, case and audience. While bigger means more seats and more revenue for each show, there is a capacity percentage that must be factored in to the decision due to the increased rental costs. Smaller venues may lead to higher capacity percentages, but ultimately leave money on the table. The ticket prices must be set for advance sales; any change in price after this period will effectively hurt future sales - more so if the price is discounted. Determining a promotion partner may lessen the risk of a potential failure, yet cost more profit and affect the recoup schedule.

Teaching Note: 8B10A11 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Sales Forecasting; Pricing; Pricing Strategy
Difficulty: 4 - Undergraduate/MBA



TERRA BITE LOUNGE: PAY WHAT YOU WANT CAFÉ
June Cotte, Remi Trudel

Product Number: 9B09A013
Publication Date: 6/26/2009
Length: 4 pages

In April 2009, the founder and owner of Terra Bite Lounge was considering opening another location. The Terra Bite Lounge was a Kirkland, Washington café with no prices and voluntary payment. The owner believed that Terra Bite was a demonstration of a high level of honesty and trust, between himself and the customer. There were several considerations to evaluate in deciding to open a new location. Where should the new location be? The current location was in an affluent suburb but the owner believed that several types of neighbourhoods would be receptive. What types of consumer characteristics would best be suited towards this model of trusting that payment would be made? Is there anything that could be added to the current model to make Terra Bite more successful? He was careful to consider those changes or additions that were consistent with the current social trust component of the original Terra Bite model.

Teaching Note: 8B09A13 (4 pages)
Industry: Accommodation & Food Services
Issues: Marketing Management; Consumer Behaviour; Pricing; Market Segmentation
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Marketing Channels: Delivering Customer Value

TROUBLE BREWS AT STARBUCKS
Lauranne Buchanan, Carolyn J. Simmons

Product Number: 9B09A002
Publication Date: 2/9/2009
Revision Date: 5/3/2017
Length: 14 pages

After going public in 1992, Starbucks' strong balance sheet and double-digit growth made it a hot growth stock. The Starbucks vision was coffee culture as community, the Third Place between work and home, where friends shared the experience and exotic language of gourmet coffee. Its growth was fueled by rapid expansion in the number of stores both in the United States and in foreign markets, the addition of drive-through service, its own music label that promoted and sold CDs in stores and other add-on sales, including pastries and sandwiches. In an amazingly short time, Starbucks became a wildly successful global brand. But in 2007, Starbucks' performance slipped; the company reported its first-ever decline in customer visits to U.S. stores, which led to a 50 per cent drop in its share price. In January 2008, the board ousted CEO Jim Donald and brought back Howard Schultz - Starbucks' visionary leader and CEO from 1987 to 2000 and current chairman and chief global strategist - to re-take the helm. Starbucks' growth strategies have been widely reported and analyzed, but rarely with an eye to their impact on the brand. This case offers a compelling example of how non-brand managerial decisions - such as store locations, licensing arrangements and drive-through service - can make sense on financial criteria at one point in time, yet erode brand positioning and equity in the longer term. Examining the growth decisions made in the United States provides a rich context in which to examine both the promise and drawback of further foreign expansion.

Teaching Note: 8B09A02 (15 pages)
Industry: Accommodation & Food Services
Issues: Branding; Retailing; Product Design/Development; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



MARKET STRETCH
Gavin Price, Margaret Sutherland

Product Number: 9B09M046
Publication Date: 6/25/2009
Length: 11 pages

Bio-Oil is a multi-purpose skin care product that has gone from being sold only in South Africa to being the No. 1 scar treatment product in 16 of the 17 countries in which it is distributed. Retail sales have jumped from R3 million per annum to R1 billion from 2000 to 2008. Justin and David Letschert made key decisions to eliminate all of the other 119 products that were being manufactured by the company that they took over in 2000, and focused on the mainstay product of Bio-Oil. Union-Swiss accomplished its successful sales through the use of a hybrid distribution model that compelled its distributors in each country to communicate and share knowledge with each other. Union-Swiss also ensured that it remained focused on building the brand through limiting its activities in the value chain to that of marketing. It did this to such an extent that it created a separate entity to run the distribution of Bio-Oil in South Africa.

Teaching Note: 8B09M46 (8 pages)
Industry: Wholesale Trade
Issues: Market Entry; International Business; Supply Chain Management; Strategic Positioning; GIBS
Difficulty: 5 - MBA/Postgraduate



LEVI STRAUSS CANADA HOLDING AN EMBER: THE GWG BRAND
Michael R. Pearce, Ken Mark, Jordan Mitchell

Product Number: 9B04A007
Publication Date: 10/13/2004
Revision Date: 10/7/2009
Length: 16 pages

The director of marketing for Levi Strauss Canada needs to decide the future fate of the GWG brand, a fallen giant in the Canadian jeans market. For the last three years, GWG had been licensed to a small manufacturer, who has failed to meet the requirements in the license agreement. While the director is keen to use some of the latent brand equity in GWG, she know that Levi's and Dockers brands come first and that she can not divert marketing dollars towards the brand's revival. As well, she must be careful to manage her small but powerful portfolio of brands in the five main channels without cannibalizing the already declining volumes of the Levi's brand.

Teaching Note: 8B04A07 (16 pages)
Industry: Manufacturing
Issues: Brand Management; Licensing; Marketing Channels; Market Segmentation
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Retailing and Wholesaling

TEN THOUSAND VILLAGES OF CINCINNATI: THE FIRST YEAR AND BEYOND
Mary Conway Dato-on

Product Number: 9B10A008
Publication Date: 6/10/2010
Length: 15 pages

Ten Thousand Villages (TTV) is a nonprofit fair trade retail organization with a store located in Cincinnati, Ohio. During the store's opening and first two years of operations (2002-2004), Karen, the chair of the board of directors, and Cheryl, the store manager, struggle to develop a customer-focused plan to ensure sales increases for their unique operation. Marketing issues ranging from store location selection to inventory selection and promotion are presented. In addition to covering an alternative method of doing business - nonprofit enterprise - the case provides a platform for customer relationship management (CRM) implementation in a small, nonprofit environment.

Teaching Note: 8B10A08 (8 pages)
Industry: Social Advocacy Organizations
Issues: Not-For-Profit Marketing; Fair Trade; Retailing; Customer Value Segmentation
Difficulty: 3 - Undergraduate



CANADA GOOSE INC.: AT A RETAIL CROSSROADS
June Cotte, Jesse Silvertown

Product Number: 9B09A012
Publication Date: 5/14/2009
Length: 12 pages

In June 2008, the president and owner of Canada Goose Inc. (Canada Goose), a producer of luxury sport jackets, was contemplating the future of his company. Despite recent years' steady growth in both his company and the industry in general, the president believed that a significant opportunity existed for Canada Goose to further cement itself as a market leader for this industry. The president was intrigued by two separate offers from national retailers in Canada. Both were in the form of long-term contracts; in the past Canada Goose had used such contracts to maintain successful relationships with its many distributors. The offers were lucrative; however, the president needed to consider whether the offers aligned with the company's current marketing strategy. Agreeing to stock its product through a national chain would be a departure from its current method of distribution through independently-owned regional retailers. Accepting either of the offers would not only potentially price these retailers out of the market but could also lead to the devaluation of the brand.

Teaching Note: 8B09A12 (3 pages)
Industry: Manufacturing
Issues: Marketing Channels; Brand Positioning; Brand Management; Retailing
Difficulty: 4 - Undergraduate/MBA



LOBLAW COMPANIES LIMITED: PREPARING FOR WAL-MART SUPERCENTERS
Kenneth G. Hardy, Veronika Papyrina

Product Number: 9B07A012
Publication Date: 8/3/2007
Revision Date: 5/15/2009
Length: 21 pages

In February 2007, Loblaw Companies Limited (Loblaw) was far and away the dominant food retailer in Canada with a market share of 35 per cent across its various retailing formats. As part of its long term retailing strategy and in a bid to reduce the impact of Wal-Mart Canada's entry into food retailing, in 2004 Loblaw began to build new The Real Canadian Superstores in Ontario and position them as blockers that resembled Wal-Mart's U.S. combination food and general merchandise superstores. It overhauled its entire logistical system to improve its cost structure and it brought in new senior executives in 2006. Unfortunately, The Real Canadian Superstores appeared to be disappointing some customers, retail analysts, industry experts and even former Loblaw executives. Meanwhile, Wal-Mart entered the retail food market in 2006 with distinctive emphasis on fresh produce and deli offerings on top of its low prices and wide assortment. The question for Loblaw's executive team was whether or not to make any strategic changes, and, if so, in what direction.

Teaching Note: 8B07A12 (8 pages)
Industry: Retail Trade
Issues: Competitiveness; Management Performance; Market Strategy; Retail Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Communicating Customer Value: Advertising and Public Relations

THE POWER OF PERSUASION: AN EXERCISE IN CREATING PERSUASIVE ADVERTISING
Michael Parent, Leyland Pitt, Stacey Morrison

Product Number: 9B09A001
Publication Date: 1/14/2009
Length: 1 pages

Do subliminal cues have an effect on behaviour? This question is at the heart of many debates in advertising. In this exercise, students can determine, through their own experience, the impact of subconscious cues on their decisions. In this simulation, the instructor places a number of specific cues throughout the building. Students, in turn, are tasked with creating an advertising poster for a chain of children's play centres. Inevitably, their posters incorporate some, and sometimes all, of the cues. The exercise can lead to a deep and constructive discussion on the effect of subconscious cues on consumers.

Teaching Note: 8B09A01 (9 pages)
Industry: Other Services
Issues: Advertising Effectiveness; Marketing Communication; Consumer Behaviour; Ethical Issues
Difficulty: 4 - Undergraduate/MBA



AIR MILES CANADA: REBRANDING THE AIR MILES REWARDS PROGRAM
Niraj Dawar, Ramasastry Chandrasekhar

Product Number: 9B07A009
Publication Date: 11/21/2007
Revision Date: 4/3/2008
Length: 11 pages

Air Miles, the largest third party loyalty program in Canada, has more than nine million subscribers. Competition in the loyalty card market is heating up with the entry of Aeroplan and myriad proprietary loyalty programs launched by retailers and other brands, and Air Miles seeks to tighten its relationship with customers. Paradoxically, for a data-driven company focused on influencing consumers individually, Air Miles opts to develop and launch a mass advertising campaign to reconnect with consumers, and just as importantly, to re-energize internally.

Teaching Note: 8B07A09 (4 pages)
Industry: Retail Trade
Issues: Advertising; Customer Loyalty; Brand Repositioning; Data-driven Marketing
Difficulty: 4 - Undergraduate/MBA



CAPITAL ONE: LAUNCHING A MASS MEDIA CAMPAIGN
Robert J. Fisher, Ken Mark

Product Number: 9B06A005
Publication Date: 4/11/2006
Revision Date: 9/9/2009
Length: 18 pages

The senior Brand Manager for Capital One Canada is developing the firm's strategy for its first mass media advertising campaign in Canada. He had been provided with a menu of U.S. and U.K. advertisements - with test results for each - which he can adapt for a Canadian audience. The key decisions the Senior Brand Manager faces includes which customer segment to focus on, what value proposition to signal to this segment, what advertisements should be used to deliver these messages, and what customization efforts are necessary. He has a presentation to Capital One's senior management team and needs to back up his recommendations with numbers and logic.

Teaching Note: 8B06A05 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Brand Management; Advertising Media; Advertising Strategy; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Personal Selling and Sales Promotion

SPECTRUM BRANDS, INC. - THE SALES FORCE DILEMMA
Donald W. Barclay, Joe Falconi

Product Number: 9B06A035
Publication Date: 2/26/2007
Length: 20 pages

In 2005, the vice-president of sales and marketing for the Canadian division of Spectrum Brands Inc. must determine his next steps regarding the structure of his sales force. Spectrum Brands (Spectrum), a global consumer products company formerly known as Rayovac Corporation, had made a number of acquisitions to diversify and expand its product and brand portfolio. With these changes, Spectrum had become a leading supplier of consumer batteries, lawn and garden care products, specialty pet supplies, and shaving and grooming products. The vice-president of sales and marketing was charged with the task of creating a national sales force from the teams of the newly merged companies. Knowing the importance of the sales function to each of these companies, he wanted to ensure; despite the differences among the diverse groups, that he still maintained a team which would effectively and efficiently continue to increase the sales of each business unit.

Teaching Note: 8B06A35 (13 pages)
Industry: Manufacturing
Issues: Sales Organization; Acquisitions; Change Management; Sales Management
Difficulty: 4 - Undergraduate/MBA



BOOTS: HAIR-CARE SALES PROMOTION
Robert J. Fisher, Murray J. Bryant, Pankaj Shandilya

Product Number: 9B05A022
Publication Date: 9/1/2005
Revision Date: 9/24/2009
Length: 11 pages

Boots Group PLC, one of the best known and respected retail names in the United Kingdom, provided health and beauty products and advice that enhanced personal well being. The marketing manager at Boots was planning his sales promotion strategy for a line of professional hair-care products. The professional hair-care line consisted primarily of shampoos, conditioners and styling products (gels, wax, mousse, etc.) developed in collaboration with United Kingdom's top celebrity hairdressers. The marketing manager's challenge was to select one of three promotional alternatives - get three for the price of two, receive a gift with purchase or an on-pack coupon - for the Christmas season. He realized that the alternative he selected would have both immediate effects on costs and sales, but also long-term implications for the brands involved. His primary objective was to drive sales volumes and trade-up consumers from lower-value brands, while retaining or building brand equity.

Teaching Note: 8B05A22 (6 pages)
Industry: Retail Trade
Issues: Sales Promotion; Advertising Management; Brands
Difficulty: 4 - Undergraduate/MBA



ALCHEMY TRAINING FIRM
June Cotte, Alan (Wenchu) Yang

Product Number: 9B04A015
Publication Date: 9/20/2004
Revision Date: 10/7/2009
Length: 14 pages

The top sales person for Alchemy Training Firm has visited three potential clients, an existing customer, a warm call referral and a cold call, to sell a new offering from the company. While the company was well-known for providing top quality sales management training programs, the owners have decided to branch out with a new offer of supply chain management/purchasing training courses. The sales person must prepare a report of these sales calls for a planning session, and is concerned that the outcome may not be successful. He wonders what he could have done differently. The case highlights the difficulties in selling a new intangible service when firm reputation, trainer reputation, and course customization opportunities compete with cost as main buyer priorities. The differing opinions of the owners on the firm's growth strategy are an issue, as well.

Teaching Note: 8B04A15 (5 pages)
Industry: Educational Services
Issues: China; Sales Management; Corporate Strategy; Sales Strategy; Services
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Direct and Online Marketing: Building Direct Customer Relationships

EXPATICA.COM: 10 YEARS OF A DUTCH BORN-GLOBAL
Christopher Williams

Product Number: 9B10M029
Publication Date: 5/5/2010
Length: 12 pages

In December 2009, the management team at Expatica.com was undertaking a strategic review of the progress of the company and of the future opportunities for growth. The management team needed to take stock: the external environment was rapidly changing and threats from competitors were on the rise. Expatica.com was founded 10 years earlier to provide English language information and news to the expatriate community in Europe, delivering its services primarily over the Internet. Over the course of the 10 years, Expatica.com had experienced significant challenges in its organization and environment. The central issue was how to make its core business effective across multiple markets. The company had made tremendous progress over the decade but now needed to re-evaluate its position and identify new opportunities for growth. The management team realized that it needed to make a number of critical decisions, especially in the areas of internationalization and product development. 1) How should Expatica.com now internationalize into new markets? Which markets should it consider? How should it select new markets? Should it pull out of any existing markets? 2) What product development strategy should it adopt? What line extensions should it make to existing products? What kinds of more radical innovation could be appropriate? Should it phase out any existing products? 3) What else should the company do to drive success?

Teaching Note: 8B10M29 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Product Development; Media; Internet; Internationalization
Difficulty: 4 - Undergraduate/MBA



MUSICJUICE.NET: THE CHALLENGES OF STARTING UP A NEW INTERNET VENTURE
Simon Parker, Rocky Liu

Product Number: 9B10A013
Publication Date: 5/21/2010
Length: 6 pages

MusicJuice.net is a new website designed to bring together musicians and a fan-base in order to raise finance for new bands. It enables musicians to bypass the large established record companies and their high royalty takes, while giving fans direct contact and involvement with exciting new acts. It is an example of a venture idea transported from one country (the Netherlands) and applied in a new and larger geographical setting (North America). The case illustrates the novel crowd-sourcing business model, which is designed to raise finance from customers rather than the entrepreneur. Most importantly, the case illustrates the challenges of starting new Internet ventures and the early stage founding issues that are involved. After a long and costly delay in establishing their website, the two founders of MusicJuice.net have struggled to generate any interest or even awareness amongst online musicians and fans, despite only limited competition from other players in the marketplace - a situation, which is already beginning to change. Students are asked what the entrepreneurs behind MusicJuice.net can do to raise awareness of their service and to generate enough customers to survive.

Teaching Note: 8B10A13 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Internet; Competition; Dominant Designs; New Venture Challenges; Startups
Difficulty: 4 - Undergraduate/MBA



SELLING GREEN DOTS IN SECOND LIFE
Wade Halvorson, Michael Parent, Leyland Pitt

Product Number: 9B09A033
Publication Date: 12/8/2009
Length: 10 pages

An Irish Air Lines pilot has re-created his home city of Dublin on Second Life. His Second Life alter ego, Ham Rambler, is busy running the site, and selling office space and advertisement on the property. The property includes a popular bar, a venue for live music performances, as well as a realistic rendering of Dublin's core. Second Life residents flock to the site for its entertainment and to experience Dublin. Mahon/Rambler needs to decide if the innovative business model he has developed is sustainable, or whether he should sell the business to other developers. The case is useful to introduce the concept of immersive Internet-based environments, and Internet advertising and selling.

Teaching Note: 8B09A33 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Advertising Effectiveness; Internet Culture; Internet; Sales Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
The Global Marketplace

BEST BUY INC. - DUAL BRANDING IN CHINA
Niraj Dawar, Ramasastry Chandrasekhar

Product Number: 9B09A016
Publication Date: 6/26/2009
Revision Date: 5/11/2010
Length: 17 pages

A month after Best Buy Inc. (Best Buy), the largest retailer of consumer electronics in the United States, acquired Five Star, the third largest retailer of appliances and consumer electronics in China in May 2006, the management of Best Buy is weighing in on a branding option. Should Five Star lose its identity and be marketed as Best Buy? Or should Best Buy retain the Five Star brand and let the two brands compete with each other in the Chinese market? The option has a sense of déjà vu because, when it first stepped out of its home turf in January of 2002 by acquiring Future Shop, the largest consumer electronics retailer in Canada, Best Buy was facing a similar dilemma. The company had decided, at the time, in favour of dual brand strategy. It had worked. There was no evidence of cannibalization, the single largest risk in dual branding. Best Buy and Future Shop had both grown together as independent brands in Canada. But, does dual brand strategy work in the vastly different retail environment of China?

Teaching Note: 8B09A16 (9 pages)
Industry: Retail Trade
Issues: China; Brand Management; Retailing; International Business
Difficulty: 4 - Undergraduate/MBA



GLOBAL BRANDING OF STELLA ARTOIS
Paul W. Beamish, Anthony Goerzen

Product Number: 9B00A019
Publication Date: 10/19/2000
Revision Date: 5/23/2017
Length: 19 pages

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. Recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. The early stages of Interbrew's global branding strategy and tactics are examined, enabling students to consider these concepts in the context of a fragmented but consolidating industry. It is suitable for use in courses in consumer marketing, international marketing and international business.

Teaching Note: 8B00A19 (10 pages)
Industry: Manufacturing
Issues: Global Product; International Business; International Marketing; Brands
Difficulty: 4 - Undergraduate/MBA



BEN & JERRY'S - JAPAN
James M. Hagen

Product Number: 9A99A037
Publication Date: 4/13/2000
Revision Date: 5/23/2017
Length: 17 pages

The CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements.

Teaching Note: 8A99A37 (6 pages)
Industry: Manufacturing
Issues: Strategic Alliances; Market Entry; International Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Sustainable Marketing: Social Responsibility and Ethics

NEW BALANCE: DEVELOPING AN INTEGRATED CSR STRATEGY
Vesela Veleva

Product Number: 9B10M011
Publication Date: 1/28/2010
Length: 21 pages

This case focuses on New Balance, a privately held company and the fourth largest athletic footwear manufacturer in the world. Founded over 100 years ago, New Balance has a strong social responsibility culture and mission established by its owners. Its commitment to employees, for example, was expressed through maintaining domestic manufacturing in the United States (the only large footwear manufacturer to do so presently) and avoiding layoffs in the deep recession of 2007-2009. In the late 1990s, the company established the Responsible Leadership Steering Committee to address human rights issues in overseas factories. Throughout the years, private ownership had allowed New Balance to take risks and make choices that publicly held companies might not have been able to do; at the same time, private ownership also meant lower pressures to disclose social and environmental performance. The owners were also very humble and hesitant to talk aloud about social responsibility. As a global player, the present challenge for the company has become to move corporate social responsibility (CSR) to the next level from doing what's right to fully integrating CSR into the business strategy. The overall goal of the case is to use the provided information from a comprehensive company assessment to identify a few key areas where New Balance can focus on and demonstrate industry leadership while also supporting the bottom line. A set of key questions is included at the end of the paper to guide student's discussion around critical issues for building an integrated CSR strategy for New Balance, considering its culture, structure and present level of corporate citizenship management.

Teaching Note: 8B10M11 (8 pages)
Industry: Manufacturing
Issues: Corporate Social Responsibility; Strategy Development; Business Sustainability; Performance Assessment
Difficulty: 4 - Undergraduate/MBA



FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR "GREENWASHING"?
James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA



SAMSUNG TESCO HOMEPLUS AND CORPORATE SOCIAL RESPONSIBILITY
Youngchan Kim, Kwangho Ahn

Product Number: 9B09M040
Publication Date: 7/13/2009
Revision Date: 7/29/2009
Length: 17 pages

Samsung Tesco Homeplus (STH), one of Korea's large hypermarkets, increased its investment in social contribution activities and systemized the organization in charge in the aftermath. It especially focused on education and cultural services, saving the environment and sharing with others. As a consequence, by December 2008, STH was considered one of the most innovative companies and one that realized true customer value. It had won a variety of awards, such as the Green Management award, Social Contribution Company award and the Eco-friendly Management award. After creating a corporate social responsibility (CSR) team in 2005, it won the CSR award given by the British Chamber of Commerce in Korea and was selected as one of Korea's Most Admired Companies. While much progress had been made, company executives wondered what factors would be the keys to their continuing CSR activities. This case presents points of contention and issues in the practice of corporate social responsibility by STH. Social contribution activities and STH were aligned with both sustainable management and customer value-oriented management. Various activities in extended education, environment and charity ultimately led customers to view STH as not just a discount store that simply sold products, but a value store. STH conducted systematic programs and activities in the areas of extended education environment and charity after having declared itself a social contribution company. This case illustrates how a company can develop its social contribution activities. In addition, discussion will centre on the long-term impacts that social contribution activities have on enterprises.

Teaching Note: 8B09M40 (10 pages)
Industry: Retail Trade
Issues: Corporate Social Responsibility; Customer Value Management; Ivey/Yonsei
Difficulty: 4 - Undergraduate/MBA