Ivey Publishing

Marketing: Real People, Real Choices

Solomon, M.R., Marshall, G.W., Stuart, E.W., Smith, J.B., Charlebois, S., Shah, B.,4/e (Canada, Pearson, 2013)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Welcome to the World of Marketing: Create and Deliver Value

CITIBANK INDIA CREDIT CARDS: STRATEGY FOR PROFITABLE GROWTH
Jaydeep Mukherjee, Sanket Kawde

Product Number: 9B14A016
Publication Date: 5/30/2014
Revision Date: 5/22/2014
Length: 17 pages

The target market of Citibank cards in India was aligned with the profitability objectives of the company. However, if it continued with its current strategy, it faced the risk of being a niche player in a growing market and losing the profit potential from other segments and geographies in the near future. The CEO needed to reconsider the target market and finalize a marketing strategy in the face of the changing composition of the marketplace, the competition and the commercial imperatives of the credit card business. This was a critical decision that would have a long-term impact on resource deployment and budgeting.

Teaching Note: 8B14A016 (10 pages)
Industry: Finance and Insurance
Issues: Target market selection; strategy; credit card marketing; customer lifetime value; India
Difficulty: 5 - MBA/Postgraduate



CISCO'S VISION: A SMART+CONNECTED WORLD
Chris Laszlo, Patrick Kelly

Product Number: 9B13M116
Publication Date: 12/20/2013
Revision Date: 12/20/2013
Length: 16 pages

Having been called upon by global leaders to use its technology to address the global crises of climate change and poverty, Cisco opts to pursue sustainability for corporate social responsibility and as a driver of differentiation and competitive advantage. The case discussion explores how the company answered this call to action and how the resulting strategies have proven effective in protecting its competitive advantage in an increasingly hostile business environment. The case traces the company’s historical rise to power through the Internet bubble of 2000 and up to the present day, as the firm adjusts to competition in the 21st century. With the introduction of its new and ground-breaking technology, Cisco seeks to drive sustainability and future profits. The question becomes: will it work? The CEO ponders how he could use his company’s core business of information technology (IT) to drive global environmental and economic sustainability. Can he fulfill his dual responsibility of doing the right thing for his shareholders while, at the same time, doing the right thing for the world at large?

Teaching Note: 8B13M116 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Sustainability; smart cities; United States
Difficulty: 4 - Undergraduate/MBA



CARDSWAP: CONVERTING UNWANTED GIFT CARDS INTO CASH
Neil Bendle, Michael Taylor

Product Number: 9B11A034
Publication Date: 9/22/2011
Length: 12 pages

CardSwap was an online service that provided consumers with the opportunity to convert unwanted gift cards into hard cash. The co-founder felt convinced that his small Canadian company created great value for its customers. After all, there were around a billion dollars of unwanted gift cards entering circulation every year. People who owned these unwanted gift cards would surely want to use the CardSwap service. CardSwap could offer a strong value proposition to consumers while ensuring a healthy return through commissions on every transaction. Problems remained, however, as CardSwap was a relatively small company and had no access to the multi-million-dollar advertising budgets that might be needed to get a message out to consumers through an extensive multi-media strategy. How much should the company be willing to spend to acquire a customer? How best could this new company use its limited resources to communicate to customers the benefits of CardSwap?

Teaching Note: 8B11A034 (12 pages)
Industry: Retail Trade
Issues: Customer Value; Creating Value; Gift Cards; Marketing Communications
Difficulty: 3 - Undergraduate



ENTREPRENEURS AT TWITTER: BUILDING A BRAND, A SOCIAL TOOL OR A TECH POWERHOUSE?
Simon Parker, Ken Mark

Product Number: 9B10M028
Publication Date: 3/22/2010
Revision Date: 5/4/2017
Length: 10 pages

Twitter has become an incredibly popular micro-blogging service since its launch in 2006. Its founders have ambitious plans for the service, and are backed by hundreds of millions of dollars of venture capital funding, which values the company at $3.7 billion in 2011. Twitter seems to attract a diverse audience of users, such as political organizers looking to disseminate information to their followers; businesses looking to reach out, in real time, to potential customers; and social users. The company charges consumers nothing for its service. By 2011, competitors have emerged, some of whom are financially strong. It remains unclear - at least to some observers - whether the company will ever make money from its service.

Teaching Note: 8B10M28 (10 pages)
Industry: Other Services
Issues: Social Networking Media; Strategic Positioning; New Venture
Difficulty: 4 - Undergraduate/MBA



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


Chapter 2:
Strategic Market Planning: Take the Big Picture

CARGILL INDIA PVT.LTD.
Dante Pirouz, Ramasastry Chandrasekhar

Product Number: 9B13A022
Publication Date: 8/2/2013
Revision Date: 7/7/2016
Length: 14 pages

Cargill Inc., a U.S.-based multinational company, is known for its skills in business-to-business (B2B) marketing. It processes food products and markets them in bulk to large institutional buyers with whom it has a strong customer orientation. However, the head of the refined edible oils business at Cargill India, the company’s fully owned subsidiary, is facing a problem with the parent company's value proposition around B2B. While developing the annual marketing plans for the next financial year, he finds that the volatility of commodity price movements has made the task of revenue forecasts at Cargill India difficult. This volatility is compounded by frequent changes introduced by the federal government to official regulations governing the edible oil business in India. In order to gain control over the two variables, he is examining the prospect of moving into the business-to-consumer (B2C) space in India. This is a new strategic direction not only for the Indian subsidiary but also for Cargill Inc. Can he achieve buy-in not only from the parent company but also from his own managers? Will he be able to attract marketing professionals who can promote his new brands successfully to the Indian consumer?

Teaching Note: 8B13A022 (6 pages)
Industry: Retail Trade
Issues: Retailing; Consumer Marketing; Operations; Strategy; Go-To-Market Planning; India
Difficulty: 5 - MBA/Postgraduate



LEGO GROUP: BUILDING STRATEGY
Darren Meister, Paul Bigus

Product Number: 9B11M086
Publication Date: 9/13/2011
Revision Date: 2/1/2013
Length: 12 pages

The world famous toymaker, The LEGO Group, assembled an internal management team to create a strategic report on LEGO’s different product lines and business operations. In recent years, numerous threats to LEGO had emerged in the toy industry. The acquisition of Marvel Entertainment by The Walt Disney Company created major implications for valuable toy license agreements. LEGO had also recently lost a long legal battle with major competitor MEGA Brands, makers of MEGA Bloks, with a European Union court decision that removed the LEGO brick trademark. Furthermore, the second-largest toymaker in the world, Hasbro, was preparing to launch a new rival product line called Kre-O. It was critical for the management team to identify where to expand LEGO’s product lines and business operations, in order to develop a competitive strategy to continue the organization’s recent years of financial success and dominance in the building toy market.

Teaching Note: 8B11M086 (6 pages)
Industry: Other Services
Issues: Opportunity Recognition; Licensing; Competitive Strategy; Business Growth; Toy Industry; Denmark
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



CARVEL ICE CREAM - DEVELOPING THE BEIJING MARKET
Mark B. Vandenbosch, Tom Gleave

Product Number: 9A99A017
Publication Date: 8/5/1999
Revision Date: 5/24/2017
Length: 12 pages

The manager of business development for Carvel Asia Limited is trying to determine how best to increase ice cream cake sales in Beijing. In doing so, he needs to develop a complete marketing program which includes decisions about product offerings, pricing, placement (distribution) and promotion - the 4 Ps. Carvel Asia was a 50-50 joint venture between Carvel (USA) and China's Ministry of Agriculture.

Teaching Note: 8A99A17 (14 pages)
Industry: Manufacturing
Issues: China; Pricing Strategy; Product Concept; Marketing Communication; Distribution
Difficulty: 5 - MBA/Postgraduate


Chapter 3:
Marketing Research: Gather, Analyze and Use Information

MARKS AND SPENCER ENTERS CHINA
Jane Menzies, Ilan Alon, Jennifer Dugosh

Product Number: 9B12A036
Publication Date: 2/26/2013
Revision Date: 2/20/2013
Length: 18 pages

Marks and Spencer (M&S) had first ventured into international markets 70 years ago. By 2012, M&S had 337 stores in 41 countries. Although M&S saw itself as a U.K. retailer that exported its products, the company had been attempting to reduce its dependency on the U.K. economic cycle. Its goal was to increase international sales from £800 million to £1.0 billion by 2013/14. By 2020, M&S wanted to be an international, multi-channel retailer. When the company entered the Chinese market in 2008, it faced many difficulties. It had failed to conduct proper market research to understand the Chinese consumer, which had led to many issues. The company had neglected to address the cultural gaps between the United Kingdom and China. It had also taken an approach of standardizing its products, instead of adapting products to the new market. Students must consider the marketing mix policies of product, price, placement and promotion to recommend changes to M&S’s entry into China.

Teaching Note: 8B12A036 (13 pages)
Industry: Retail Trade
Issues: China market entry; culture; emerging markets; China
Difficulty: 4 - Undergraduate/MBA



SALESBRAIN LLC - B2B COMMUNICATIONS
Dante Pirouz, Ramasastry Chandrasekhar

Product Number: 9B12A005
Publication Date: 2/21/2012
Revision Date: 2/17/2012
Length: 12 pages

In May 2010, the “chief pain officer” of SalesBrain, a neuroscience-based marketing research and coaching company located in California, has been approached for advice by the marketing head of Digital Technology International (DTI), a Utah-based provider of technology solutions for the global publishing industry. DTI has been struggling with communicating the core value proposition of its offerings to customers, including leading newspaper publishers. Its frontline people are delivering messages that are technical, jargon-filled, and complex. Publisher-customers are unable to understand quickly how the technology solutions being offered by DTI can help them become competitive. The sales messages are also not consistent.

SalesBrain is suggesting a three-step process wherein it will identify the “pain points” being experienced by the publisher-customers of DTI; create a compelling set of claims that DTI could offer about its technology products; and guide its frontline salespersons towards developing appropriate sales scripts that they could use with prospective clients. SalesBrain is deploying the cutting-edge tools of neuroscience marketing in each of the three processes. The chief pain officer must choose between Layered Voice Analysis and Facial Action Coding System as a medium to serve the needs of DTI.


Teaching Note: 8B12A005 (4 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Business to Business Marketing; Marketing Research; Sales Management; Newspapers; Consumer Neuroscience; United States
Difficulty: 4 - Undergraduate/MBA



PILLSBURY COOKIE CHALLENGE
Allison Johnson, Natalie Mauro

Product Number: 9B11A001
Publication Date: 2/3/2011
Revision Date: 5/10/2017
Length: 14 pages

The Canadian Pillsbury ready-baked goods cookie line is experiencing disappointing performance, and the marketing manager at General Mills Canada Corporation is under pressure to make strategic decisions that will help turn around the segment. The marketing manager has engaged the help of the consumer insight team to conduct market research studies that will shed light on consumers and their attitudes, behaviours, and preferences towards the product. The results from the market research studies have arrived, and the students, assuming the role of the marketing manager, must filter through them to determine how this information can be used to improve the performance of the cookie segment. More specifically, students will need to determine where the greatest opportunities lie, who the team should target, what brand messaging is the most relevant, and what type of communication plan would be most effective.

Teaching Note: 8B11A001 (11 pages)
Industry: Manufacturing
Issues: Cross-cultural Differences; Customer Segmentation; Brand Positioning; Value Proposition; Market Research
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Consumer Behaviour: How and Why We Buy

UNITED AIRLINES AND CAPTAIN DENNY FLANAGAN
Colin Campbell, Niall Piercy, Michael Parent, Karen Robson

Product Number: 9B14A025
Publication Date: 7/4/2014
Revision Date: 6/26/2014
Length: 8 pages

This case follows a day in the life of Captain Denny Flanagan. A United Airlines pilot for nearly a quarter of a century and a former naval aviator, Flanagan has created and championed a campaign to radically change the nature of air travel — putting good customer service at the heart of everything the airline does and reaching back, in some way, to the golden age of air travel. Examples of his service include ordering food for passengers of delayed flights and phoning the parents of unaccompanied minors to reassure them of their children’s safety.

The success he has achieved is significant for a company that has historically received very poor customer service ratings. It raises questions about whether such exceptional service is good or bad for the organization. How can Flanagan’s approach be replicated? Is it possible or even desirable to replicate it?

Captain Denny Flanagan will be retiring in June 2016. He has expressed a strong interest in, and desire to support the teaching of the case by attending classes where the case will be discussed, at minimal cost to the institution. More details are available in the teaching note.


Teaching Note: 8B14A025 (10 pages)
Industry: Transportation and Warehousing
Issues: Customer service; change management; employee participation; service quality; United States
Difficulty: 4 - Undergraduate/MBA



FRET AND REGRET: A CONSUMER DECISION-MAKING DILEMMA
June Cotte, Seung Hwan (Mark) Lee

Product Number: 9B12A018
Publication Date: 5/10/2012
Revision Date: 5/10/2012
Length: 3 pages

As a birthday present, Mike has just been given a new smartphone by his girlfriend, Molly. However, it is not the phone he wants. Over the course of a few days, Mike struggles with the decision of whether to return the phone and get the one he wants, or keep the one he received as a gift. The case is written from the perspective of the consumer, and deals with consumer behaviour issues such as anticipatory regret. It would be useful in an introductory marketing or undergraduate consumer behaviour course.

Teaching Note: 8B12A018 (3 pages)
Issues: Consumer Behaviour; Mobile Telephones; United States
Difficulty: 2 - Intro/Undergraduate



WWW.DHONUK.COM - MARKETING ART IN AN EMERGING MARKET
S. Ramesh Kumar, Shamit Bagchi

Product Number: 9B11A019
Publication Date: 6/8/2011
Length: 18 pages

Shamit Bagchi, owner of the online art company Dhonuk, recognized that art was a niche market in India. He wanted to utilize psychographics in order to better understand art buyers and properly position his company, so he undertook a survey of art consumers’ behaviour. He believed that through selecting the appropriate demographic segments, analyzing his competition, and using the behavioural insights of the survey, he could create the proper platform for his art company.

Teaching Note: 8B11A019 (12 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Segmentation; Consumer Behaviour; Lifestyle Analysis; Market Strategy; Positioning; Art Market; India
Difficulty: 5 - MBA/Postgraduate



TOYOTA: DRIVING THE MAINSTREAM MARKET TO PURCHASE HYBRID ELECTRIC VEHICLES
Jeff Saperstein, Jennifer Nelson

Product Number: 9B04A003
Publication Date: 1/16/2004
Revision Date: 5/24/2017
Length: 23 pages

Toyota is a large, international automobile manufacturer headquartered in Japan, with plans to become the largest worldwide automaker, striving for 15 per cent of global sales. Toyota is committing itself to be the leader of the hybrid-electric automotive industry, and is relying on changes in the industry and customer perceptions to bring its plan to fruition. Toyota's challenge is to develop consumer attitude and purchase intent, from an early adopter, niche market model into universal mainstream acceptance.

Teaching Note: 8B04A03 (9 pages)
Industry: Manufacturing
Issues: Consumer Behaviour; Product Design/Development; Multinational; Marketing Management
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Business-to-Business Markets: How and Why Organizations Buy

THE POPCORN PREDICAMENT: COMPETITION, CONFLICT AND BUYING BEHAVIOUR
Michael Taylor

Product Number: 9B12A021
Publication Date: 6/22/2012
Revision Date: 6/18/2012
Length: 2 pages

This B2B role-play case, with its six supplements, is a six part interaction between competing Original Equipment Manufacturers, Distributors and End Users, each with their own business priorities. It is an excellent case to explore organizational buying behaviour, the discipline of the selling process, and the management of sales resources (time) as an asset. It can be included in an introductory marketing course at the MBA or undergraduate level. It is equally effective for executive development. It also fits in a B2B marketing course to explore organizational buying behaviour, or in the introduction module of a sales management course.

Teaching Note: 8B12A021 (6 pages)
Industry: Manufacturing
Issues: Sales Force Resource Management; Selling Process; Channel Management; North America
Difficulty: 4 - Undergraduate/MBA



BOISE AUTOMATION CANADA LTD.: THE LOST ORDER AT NORTHERN PAPER (A) (REVISED)
Michael Taylor

Product Number: 9B12A008
Publication Date: 3/9/2012
Revision Date: 6/11/2015
Length: 13 pages

A senior account manager at Boise Automation Canada Ltd. was disappointed with the news that he had just lost the $1.2 million order with Northern Paper Inc. (Northern), a paper mill. The opportunity was to design, supply, and install an automated control system for Northern’s wood-chip handling system. He had over 20 years’ experience selling automation systems in heavy industry, and had he won the order it would have easily put him over his target quota for 2011 and significantly boosted his incentive payout. Now, with less than three months before the end of the year, he was unlikely to meet his target for the year. The senior account manager wanted to understand what had gone wrong, and to learn from the experience in order to avoid repeating it. What should he have done differently? See supplement 9B15A029.

Teaching Note: 8B12A008 (11 pages)
Industry: Manufacturing
Issues: Selling process; sales force resource management; organizational buying behaviour; Canada
Difficulty: 4 - Undergraduate/MBA



TINPLATE COMPANY OF INDIA: NEED FOR A CONCEPTUAL FOCUS
S. Ramesh Kumar, Mohan Kuruvilla

Product Number: 9B01A011
Publication Date: 3/11/2002
Revision Date: 4/26/2011
Length: 11 pages

Tinplate Company of India is a leading manufacturer of tin packaging for food and beverage products and batteries. Changes in government policy on importing materials, new types of packaging products and customer dissatisfaction present challenges for the company. The company must decide whether to continue with its current market strategy, determine how it can compete with foreign companies or determine if they are missing other strategic opportunities based on organizational buying behaviours.

Teaching Note: 8B01A11 (7 pages)
Industry: Manufacturing
Issues: Market Segmentation; Competitiveness; Market Strategy; Product Management
Difficulty: 5 - MBA/Postgraduate


Chapter 6:
Sharpen the Focus: Target Marketing Strategies and Customer Relationship Management

VISA INC. AND THE GLOBAL PAYMENTS INDUSTRY
Neil Bendle, Dan Horne

Product Number: 9B14A018
Publication Date: 5/29/2014
Revision Date: 5/29/2014
Length: 8 pages

A manager, preparing for an interview with Visa Inc., seeks to understand the nature of the global payments industry and Visa Inc.'s position within it. The case outlines the industry's history and current practice through extensive use of publicly reported information. The public information allows answers to some important questions. What does Visa Inc. do? How competitive is the industry? And what is the source of Visa Inc.'s competitive advantage? Student spreadsheet is available, see 7B14A018.

Teaching Note: 8B14A018 (11 pages)
Industry: Finance and Insurance
Issues: Industry analysis; strategy; credit card; market share; North America
Difficulty: 4 - Undergraduate/MBA



TESCO'S VIRTUAL STORE: FROM SOUTH KOREA TO THE UNITED KINGDOM
Mark B. Vandenbosch, Alina Nastasoiu

Product Number: 9B14A010
Publication Date: 5/7/2014
Revision Date: 5/14/2014
Length: 12 pages

After the successful launch of their virtual grocery stores in South Korean metro stations, Tesco UK is trying to determine whether the virtual grocery store concept should be launched in their home market. In order to make this decision, Tesco needs to determine the role of the virtual store(s), the location(s) of the store(s) and the product range. At the same time, Tesco needs to compare the Korean and U.K. markets in order to determine whether the virtual store concept is viable.

Teaching Note: 8B14A010 (5 pages)
Industry: Retail Trade
Issues: Online retailing; marketing strategy; Internet marketing; United Kingdom
Difficulty: 4 - Undergraduate/MBA



ABERCROMBIE & FITCH: IS IT UNETHICAL TO BE EXCLUSIVE?
Seung Hwan (Mark) Lee, June Cotte, Danae Blanchard

Product Number: 9B14A009
Publication Date: 4/9/2014
Revision Date: 4/9/2014
Length: 5 pages

The CEO of clothing manufacturer and retailer Abercrombie and Fitch defends his decision that the company will not offer plus sizes for women, although extra large sizes are available for men, because average- to large-sized female consumers do not fit the company’s target market. This insistence on a standard of female beauty as young, svelte and tall has enraged consumers who have criticized the company, and the CEO in particular, in both the traditional and social media for exacerbating problems of body image and gender stereotypes, especially among teens. Increasing sizes, however, presents not only logistical and manufacturing challenges but may lead to charges that the company is encouraging obesity and unhealthy lifestyles as happened when a competitor, H&M, introduced large-size models and mannequins in its stores. Abercrombie and Fitch’s popularity with its target teen market depends on its promulgation of exclusivity, which in turn depends on its vision of what is “cool.” Yet, in the face of mounting criticism and declining sales, does sticking to the segmentation strategy make sense?

Teaching Note: 8B14A009 (3 pages)
Industry: Retail Trade
Issues: Marketing ethics; social media; targeting/segmentation; United States
Difficulty: 3 - Undergraduate



EVOE SPRING SPA: A POSITIONING DILEMMA
Ashita Aggarwal, Renuka Kamath, Sunil Rao

Product Number: 9B13A051
Publication Date: 1/13/2014
Revision Date: 2/27/2014
Length: 16 pages

The co-founders of Evoe Spring Spa need to decide on the positioning of their business in the nascent Indian spa market. Indian consumers perceive spas as an expensive indulgence for the rich, and some spa services are seen as socially and culturally unacceptable. As a result, the co-founders need to build this category by changing consumer attitudes toward spa services. To identify the target segment and the best positioning for Evoe, the co-founders study the market and their competitors and conduct qualitative consumer research. In the end, they must choose from three viable positioning concepts.

Teaching Note: 8B13A051 (13 pages)
Industry: Other Services
Issues: Positioning; segmentation; targeting; India
Difficulty: 5 - MBA/Postgraduate



BIO-VERT: GREEN TO WHAT LIMIT?
Raymond L. Paquin, Catherine Bedard, Genevieve Grainger

Product Number: 9B12A035
Publication Date: 12/18/2012
Revision Date: 12/18/2012
Length: 18 pages

Bio-Vert is a leading Canadian brand of eco-cleaning products manufactured by Quebec-based Savons Prolav. Run by a brother and sister team, Savons Prolav bases its products on their vision, which includes eco-friendliness, affordability and effectiveness. Demand for Bio-Vert’s phosphate-free detergents has increased dramatically since the 2007 blue-green algae bloom outbreaks in Quebec’s waterways and subsequent legislation restricting phosphate use in cleaning products. However, now that “green” cleaning products have become more mainstream, Savons Prolav faces the issue of how to adapt and grow in an increasingly crowded marketplace. This discussion considers how Savons Prolav can remain competitive in this difficult industry segment while maintaining its environmental focus.

This case highlights the pressures that an SME with strong environmental values faces in a competitive market. It includes a portrait of the cleaning products industry, consumer patterns with regards to eco-friendly products, and a background of the provincial socio-environmental event that triggered increased demand for green cleaning products in Quebec. Savons Prolav’s history, business model and core values are discussed along with potential growth options. Details on related industry, societal and marketing perspectives are provided to guide the reader through the advantages and disadvantages inherent to each opportunity.


Teaching Note: 8B12A035 (9 pages)
Industry: Other Services
Issues: Sustainability; SME; product strategy; Canada
Difficulty: 3 - Undergraduate


Chapter 7:
Create the Product

SODASTREAM TAKES ON COKE AND PEPSI
Ram Subramanian

Product Number: 9B14M038
Publication Date: 4/24/2014
Revision Date: 4/24/2014
Length: 11 pages

SodaStream International Limited is an Israel-based company that pioneered the home carbonation market. It sells soda makers that enable the consumer to prepare at home sparkling water or a variety of flavoured carbonated beverages. After its initial public offering in 2010, its chief executive officer sought to aggressively grow the company and set a $1 billion revenue target (from 2012 revenues of $436.32 million) by principally focusing on the U.S. market, the largest in the world for non-carbonated beverages. In addition to going up against global beverage behemoths, Coca-Cola Company and PepsiCo — whose advertising budgets alone are five to eight times SodaStream’s revenues — SodaStream faces new competitors in Green Mountain Coffee Roasters and Primo Water Corporation, who pose a direct challenge to its ambitious goal.

Teaching Note: 8B14M038 (7 pages)
Industry: Accommodation & Food Services
Issues: business model; disruptive innovation; beverages; Israel; United States
Difficulty: 5 - MBA/Postgraduate



APPLE V. SAMSUNG: INTELLECTUAL PROPERTY AND THE SMARTPHONE PATENT WARS
Gloria Barczak, Susan Montgomery, David T.A. Wesley

Product Number: 9B13A009
Publication Date: 4/23/2013
Revision Date: 4/30/2013
Length: 20 pages

In 2012, Apple, Inc. won the largest patent infringement case in history against Samsung Electronics for Samsung’s willful copying of Apple’s iPhone and iPad. Samsung, which recently overtook Apple as the leading smartphone maker, must now devise a strategy to address the court verdict and its potential impact on new product development.

Teaching Note: 8B13A009 (9 pages)
Industry: Manufacturing
Issues: Intellectual Property; Legal System; Innovation; Patents; United States
Difficulty: 4 - Undergraduate/MBA



PEARSON'S SUCCESSMAKER: PUTTING THE CUSTOMER FIRST IN TRANSFORMING PRODUCT DEVELOPMENT PROCESSES
T.S. Raghu, Collin Sellman

Product Number: 9B11E040
Publication Date: 2/23/2012
Length: 13 pages

Pearson Plc is an education company that operates worldwide, with headquarters in London, England. Its six primary business units are North American Education, International Education, Professional, The Financial Times, Interactive Data, and Penguin Publishing. The vice president of product management within the Digital Learning division of the North American Education unit based in Chandler, Arizona, begins to transform the product development processes to better meet the needs of his customers in the education market, specifically in transitioning from using an off-shored Waterfall software development model to an on-shore Agile model.

When the vice president first joined Pearson a year earlier, the Digital Learning unit had spent significant resources developing a major upgrade for one of its educational software products. The first version of this new product was challenged by the disconnect between what the software development group was delivering and what the vice president’s customers desired. He is now faced with a decision to continue focusing on the specific methodology the group had implemented (Scrum) or move to a new one (Kanban). Additionally, he has to consider expanding his focus to help drive Agile methodologies both with other groups in his business unit and outside his business unit. These decisions must be made at a potentially critical time for his products as his organization deals with the growing pains associated with the shift to Agile.


Teaching Note: 8B11E040 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Product Development; Process Design; Agile Methodology; Systems Development; Educational Software; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Manage the Product

DOVE REAL BEAUTY SKETCHES CAMPAIGN
Matthew Thomson, Emily Goldberg, Ben Gottlieb, Samantha Landy, Samuel Solomon, Lindsay Sittler

Product Number: 9B14A012
Publication Date: 5/14/2014
Revision Date: 5/14/2014
Length: 6 pages

This case discusses the future of the Dove brand and what type of advertising it should use moving forward. The brand has previously launched the Dove Real Beauty Campaign, which focuses on widening the definition of beauty. Students are given the history of the campaign and are asked to assess various options for the Dove brand.

Teaching Note: 8B14A012 (7 pages)
Industry: Manufacturing
Issues: Advertising; Canada
Difficulty: 3 - Undergraduate



BURBERRY
June Cotte, Marta Jarosinski

Product Number: 9B14A014
Publication Date: 4/28/2014
Revision Date: 4/28/2014
Length: 16 pages

In 2006, Burberry appointed a new chief executive officer (CEO) with many years of experience in senior positions in the fashion and luxury industries. Though Burberry had enjoyed continued year over year growth, the sales growth was not on par with the growth seen within the personal luxury industry. Big changes within Burberry were expected to come as the new CEO took the reins in July 2006. What were the transformations and changes that Burberry would need to make in order to successfully adapt to the dynamic and innovative global business environment of the luxury industry?

Teaching Note: 8B14A014 (11 pages)
Industry: Other Services
Issues: Luxury; fashion; strategy; United Kingdom; global
Difficulty: 4 - Undergraduate/MBA



LOUIS VUITTON IN JAPAN
Justin Paul, Charlotte Feroul

Product Number: 9B10M067
Publication Date: 10/19/2010
Revision Date: 2/22/2017
Length: 20 pages

This case deals with the opportunities and challenges of Louis Vuitton, the leading European luxury-sector multinational firm, in Japan, taking into account the unique features of brand management and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton’s most profitable market, but the global economic crisis has presented challenges.

Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market. The days of relying on a logo and a high price seem to be gone, as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works.

Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton’s successful business model in the Japanese market?


Teaching Note: 8B10M67 (8 pages)
Industry: Manufacturing
Issues: International Marketing; Strategic Management; Brand Management; Luxury Goods; Financial Crisis; Japan; France
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


Chapter 9:
Price the Product

LUDHIANA CITY BUS SERVICES LIMITED: PRICING FOR PROFITS
Neeraj Pandey, Gaganpreet Singh

Product Number: 9B14A019
Publication Date: 5/26/2014
Revision Date: 5/26/2014
Length: 12 pages

Ludhiana City Bus Service Limited (LCBSL) was created to improve the urban transportation system in the city of Ludhiana, India. As per the existing pricing strategy, bus fares (one of key revenue source for LCBSL) were set by the state government. LCBSL management was convinced that there was ample scope for raising the bus fares. The partial project implementation had been generating a return on capital of 1.9 per cent. To reduce this breakeven period and achieve targeted returns on capital of 4 per cent, management was considering the option to increase fares across different distance categories. Would this price restructuring be a game changer for LCBSL and a benchmark pricing strategy for other city bus service projects to follow?

Teaching Note: 8B14A019 (8 pages)
Industry: Transportation and Warehousing
Issues: Pricing over product life; profit; target returns; India
Difficulty: 5 - MBA/Postgraduate



A COUPLE OF SQUARES: PRICING FOR THE FUTURE (A)
Dante Pirouz, Raymond Pirouz, Dina Ribbink, Emily Chen-Bendle

Product Number: 9B13A004
Publication Date: 3/14/2013
Revision Date: 3/21/2013
Length: 14 pages

A small upscale bakery produces artisan-quality, hand-decorated cookies, generating $1 million in annual revenue. In the (A) case, the two co-owners investigate the role of pricing in driving growth for their business and allowing them to achieve several fundamental financial goals. In the (B) case 9B13A005, the partners explore the possibility of a website to drive direct-to-consumer sales on an e-commerce platform.

The multimedia elements of the case 7B13A004 will add to the richness of the conversation. (A higher price applies to this case due to color exhibits.)


Teaching Note: 8B13A004 (4 pages)
Industry: Manufacturing
Issues: Pricing; Operations; Small Business; Social Media; B2C; B2B; Canada
Difficulty: 4 - Undergraduate/MBA



SY.MED DEVELOPMENT, INC.
Randle Raggio

Product Number: 9B09A010
Publication Date: 6/10/2009
Length: 20 pages

In March of 2001, the president of Sy.Med Development, Inc. (Sy.Med), a small health-care software firm, was concerned about his company's sales performance in the year-to-date. Nine units were projected, but only three had been sold. As a result, Sy.Med was 66 per cent below the president's unit forecast, 210 per cent below his net income forecast, and had lost $40,000. The president wondered whether a change to the base price of the software was necessary to boost sales. The case introduces the concept of value pricing, that is, pricing on the basis of value received by customers, not pricing on the basis of the cost of providing the product or service. The concept of value pricing at Sy.Med requires the simultaneous consideration of customer segments and sales force allocation in a high-tech setting. With careful calculation, students can determine the benefit to a particular customer of using the OneApp software. Some sensitivity analysis is required because not all practice sizes are equivalent, nor do they face the same labour costs. Although the pricing decision is the focus of the case, strategy (e.g. relating to customer selection, strategic focus) and sales force issues are inextricably linked to this decision. After the class discussion is complete, students should understand that pricing decisions cannot be made in isolation; the strategy and structure of the market must be considered. The case works well in the core MBA marketing course to introduce the concept of value pricing, and equally well in a course focused on pricing to emphasize the interrelations among organizational issues, the competitive market and the pricing decision. The case can also be used in an orientation program or as an introductory case to help train students in the art of preparing a quantitative case analysis.

Teaching Note: 8B09A10 (8 pages)
Industry: Health Care Services
Issues: Value Analysis; Pricing Strategy; Sales Organization; Sales Strategy
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


Chapter 10:
One-to Many to Many-to-Many: Traditional and New Media

HIMALAYA DRUG COMPANY: REPOSITIONING A HERBAL SOAP
S. Ramesh Kumar, Venkata Seshagiri Rao, Narayana Trinadh Kotturu

Product Number: 9B13A048
Publication Date: 4/11/2014
Revision Date: 6/11/2014
Length: 8 pages

In an initiative to develop its herbal soap offering and create a repositioning strategy for its soap products, one of the front-runners in the Indian skincare market explored the perception of the brand image, using survey data to compare its own image with those of two of its strongest competitors. The challenge for this brand was to reposition itself and build its equity after taking into consideration the perceptual results of the study and the existing positioning of soap brands.

Teaching Note: 8B13A048 (6 pages)
Industry: Retail Trade
Issues: Brand positioning; herbal brand; brand repositioning; consumer behaviour; India
Difficulty: 5 - MBA/Postgraduate



"OUR BEER PRINT": BREWING CORPORATE RESPONSIBILITY AT MOLSON COORS
Mary Weil, Chitra P. Reddin

Product Number: 9B13A026
Publication Date: 11/19/2013
Revision Date: 11/19/2013
Length: 14 pages

Molson Coors’ chief corporate responsibility officer has been tasked to use the company’s efforts toward global corporate responsibility to drive its global competitiveness. He must roll out new corporate responsibility initiatives to engage employees across the company’s range of geographic locations.

Teaching Note: 8B13A026 (9 pages)
Industry: Accommodation & Food Services
Issues: Corporate responsibility; sustainability; communications; responsible sourcing; United States
Difficulty: 3 - Undergraduate



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 11:
Advertising, Public Relations, Promotions, Direct Marketing and Personal Selling

TESLA MOTORS: BURNING UP THE ROAD TO MARKET DOMINATION OR DOOM
Dante Pirouz, Karam Putros

Product Number: 9B13A050
Publication Date: 2/4/2014
Revision Date: 4/16/2014
Length: 10 pages

Ten years after its founding, California-based Tesla Motors is close to becoming one of the world’s premier luxury car manufacturers. Its innovative design — using carbon fibre and aluminum rather than steel to construct body and parts — and technology — lithium ion battery packs rather than gasoline for power and a simple powertrain to provide maximum acceleration — make its models treasured options for eco-friendly and tech-savvy consumers as well as wealthy professionals. Relying almost entirely on word-of-mouth promotion through social media, the company sells its cars through factory stores in upscale malls rather than through dealerships and has built service centres to provide free battery charging. However, just as it is expanding into Europe and Asia and is contemplating buying its own factory to secure its battery supply, three of its cars have burst into flames following collisions, although no one has been injured. In addition, analysts claim that the company has been covering up its lack of cash flow by using non-generally accepted accounting principles for reporting its revenue. The CEO knows that the company has tremendous potential but is struggling with public relations problems arising from the crashes and questions about its financial stability and return on investment to investors.

Teaching Note: 8B13A050 (4 pages)
Industry: Manufacturing
Issues: Electric cars; premium; sales; public relations; United States
Difficulty: 4 - Undergraduate/MBA



ABERCROMBIE & #FITCHTHEHOMELESS
Karen Robson, Colin Campbell, Justin Cohen

Product Number: 9B13A032
Publication Date: 10/3/2013
Revision Date: 10/3/2013
Length: 7 pages

In early May 2013, Abercrombie & Fitch, a high-end clothing retailer in the United States, faced a loss of consumer confidence in its brand after quotes made by its CEO in an interview seven years earlier resurfaced. His remarks fostered the perception that the company was prejudiced against overweight people. In response, angry consumers released a YouTube video entitled #FitchTheHomeless urging people to donate their Abercrombie & Fitch clothing to homeless individuals. This video went viral and inspired negative feedback towards the company from both social media networks and mainstream media outlets. Abercrombie & Fitch’s first response came 12 days later with a second apology issued the following week. Nonetheless, the controversy continued, and by June, Forbes announced that the company’s BrandIndex Impression was at an all year low. How can Abercrombie & Fitch reverse the negative feedback and regain its consumers’ loyalty?

You might also like: Abercrombie and Fitch, Mountain Dew: The Most Racist Soft-drink Commercial in History?, Domino’s Pizza

Teaching Note: 8B13A032 (6 pages)
Industry: Retail Trade
Issues: Social media; crisis response; public relations; marketing; United States
Difficulty: 4 - Undergraduate/MBA



AMERICAN APPAREL: UNWRAPPING ETHICS
June Cotte, Seung Hwan (Mark) Lee, Brittany Schuette

Product Number: 9B12A032
Publication Date: 8/13/2012
Revision Date: 8/13/2012
Length: 5 pages

American Apparel, a popular clothing manufacturer, has socially progressive labour policies and uses significant environmental advances in its manufacturing process. In addition, it has a well-established philanthropic arm. Set against these socially responsible policies is the highly sexualized nature of the company’s advertising. This element of the marketing mix seems, at least to some consumers, very much at odds with the other aims and policies of the company. The question facing students is whether this disconnect can be maintained or whether the brand’s advertising should change.

Teaching Note: 8B12A032 (2 pages)
Industry: Retail Trade
Issues: Ethics; Corporate Social Responsibility; Advertising Strategy; Controversial Advertising, United States
Difficulty: 2 - Intro/Undergraduate



NETFLIX: THE PUBLIC RELATIONS BOX OFFICE FLOP
Jana Seijts, Paul Bigus

Product Number: 9B12M049
Publication Date: 4/24/2012
Revision Date: 4/24/2012
Length: 12 pages

On the morning of September 19, 2011, the chief executive officer (CEO) of the online movie provider Netflix Incorporated became witness to growing public discontent and media criticism directed at the company. The previous evening, the CEO had announced on the company blog that Netflix would be splitting into two separate entities. With the proposed change, the Netflix DVD-by-mail service would be spun out and renamed Qwikster. The move would leave the Netflix brand to focus on offering online streamed entertainment. This was not the first time Netflix had caused large-scale consumer frustration, as a few months earlier in July 2011 the company had announced it would be increasing rates by as much as 60 per cent. The result was a loss of over one million Netflix subscribers by September 2011, representing the first time the company had ever lost subscribers from one quarter to the next. Although the split into two separate entities could be seen as a good business strategy, Netflix did not follow through with a well-developed communication plan. Moving forward, both Netflix and Qwikster had come to represent an unfortunate dichotomy, and Netflix’s management was in desperate need to develop better communications with disgruntled consumers or risk losing additional subscribers and lucrative profits to a number of growing competitors.

Teaching Note: 8B12M049 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Communications; Brands; Consumer Satisfaction; Pricing; Movie Rentals; United States
Difficulty: 4 - Undergraduate/MBA



MOLSON CANADA: SOCIAL MEDIA MARKETING
Deborah Compeau, Israr Qureshi

Product Number: 9B08A014
Publication Date: 10/23/2008
Revision Date: 5/4/2017
Length: 13 pages

This case describes Molson’s experiment with social media for creating brand awareness. In November 2007, Molson, part of the Molson Coors Brewing Company, ended a social media promotion after facing criticism that it promoted binge drinking. Molson was faced with the difficulty of how quickly the contents of social media could spread to various audiences. The case encourages readers to ponder whether Molson’s action was the only option available and to consider what its next steps might be.

Teaching Note: 8B08A14 (4 pages)
Industry: Manufacturing
Issues: Privacy Issues; Internet Culture; Management Information Systems; Social Media; Facebook; Breweries
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Deliver the Value Through Supply Chain Management, Channels of Distribution, and Logistics

WHIRLPOOL AND THE BUILT-IN APPLIANCE INDUSTRY IN INDIA
Sandeep Puri, Adeshwar Raja Balaji Prasad, Natarajan ANC, Parasaran VS, Sashikanth Yenika, Vijay Kumar Venna

Product Number: 9B13M082
Publication Date: 9/24/2013
Revision Date: 9/24/2013
Length: 8 pages

India’s real estate boom led to the built-in appliances industry’s biggest opportunity. In 2010 and 2011, a total of 533,954 residential units were launched in seven top cities: Mumbai, National Capital Region, Pune, Kolkata, Bengaluru, Chennai and Hyderabad. As the market evolved and demand increased, investments and improvements in infrastructure, software, education, work force, installation, after-sales service, logistics were guaranteed to occur. This was expected to initiate a cycle of profitable growth. Whirlpool was already an established player in the home appliances segment. Given the improving industry described above, should Whirlpool tap this emerging market? If so, what might be its strategic objectives and positioning strategies for dealing with the competition and appealing to its prospective customers?

Teaching Note: 8B13M082 (9 pages)
Industry: Manufacturing
Issues: New product management; business development; business environment; India
Difficulty: 5 - MBA/Postgraduate



AN IRATE DISTRIBUTOR: THE QUESTION OF PROFITABILITY
Renuka Kamath, K.K. Kishore, Sagar Sharma

Product Number: 9B13A015
Publication Date: 8/12/2013
Revision Date: 8/9/2013
Length: 14 pages

In June 2012, an area sales manager at NutriPack India, a multinational company dealing with fast-moving consumer goods, had to find a way to match the success of his predecessor in increasing retail outlet coverage in central Maharashtra. He studied the territory data and identified the Jalgaon region as having the potential for high growth. However, the single distributor for Jalgaon was upset because he had already increased his operations the previous year and was unconvinced that this had been profitable. The area sales manager needed to convince this distributor of the benefits of his past investments, and also convince him to make further investments (e.g., hire more salespersons).

This case illustrates the challenges that young area sales managers face when they have to deal with experienced distributors in the Indian retail trade, especially in smaller towns where relationships can greatly affect business. Students will gain an understanding of the key performance indicators required to focus on developmental issues in a territory. They will appreciate financial considerations as a major tool in dealing with intermediaries, such as distributors, and will gain practical knowledge in how to convince a distributor of his past investments and profitability, and pave the way for further investment for retail expansion.


Teaching Note: 8B13A015 (22 pages)
Industry: Retail Trade
Issues: Distributor management; channel management; profitability; India
Difficulty: 5 - MBA/Postgraduate



FERRO INDUSTRIES — EXPORTING CHALLENGE IN A SMALL FIRM
Justin Paul, Parul Gupta, Shruti Gupta

Product Number: 9B11M115
Publication Date: 1/25/2012
Revision Date: 6/12/2013
Length: 18 pages

This case deals with an exporting challenge faced by Ferro Industries, a small enterprise within the steel industry in India. The company’s manufacturing facility was located in the National Capital Region of Delhi. Ferro’s main products were roll-forming machines, cut-to-length lines, and slitting lines; the company was one of only three firms in the Indian sub-continent catering to the market for such products. This case raises two basic questions in relation to Ferro’s role as an exporter. Firstly, at what stage should an importer have to pay an exporter? Secondly, should the exporter release consignment to the importer before receiving payment? The case illustrates the challenges of exporting and international entrepreneurship for a small firm, taking into account payment risk, product pricing, deal-making strategies, promotional strategy, and client-management strategies. It also addresses the complexities involved in the decision-making process while exporting, as well as outlining various conflict-resolution techniques for closing a deal effectively while considering the appropriateness of taking risks.

Teaching Note: 8B11M115 (8 pages)
Industry: Manufacturing
Issues: Exports; Trade Finance; International Trade Logistics; Global Supply Chain Management; Saudi Arabia; India
Difficulty: 5 - MBA/Postgraduate



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