Case studies

The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment.

Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid's owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug's unit volume, revenue, and/or profit in these difficult circumstances.

The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott's marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.

After analyzing the case students should be able to:

• Describe strategies that branded competitors can use to defend their business from lower-priced competition

• Understand the basics of pharmaceutical marketing and pricing, including the global challenge of defending branded drugs against generic equivalents

• Discuss ethical issues in the marketing of high-margin branded products that have lower-priced alternatives, especially in the healthcare industry

Describe strategies that branded competitors can use to defend their business from lower-priced competition

Understand the basics of pharmaceutical marketing and pricing, including the global challenge of defending branded drugs against generic equivalents

Discuss ethical issues in the marketing of high-margin branded products that have lower-priced alternatives, especially in the healthcare industry

The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment.

Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid's owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug's unit volume, revenue, and/or profit in these difficult circumstances.

The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott's marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.

After analyzing the case students should be able to:

• Describe strategies that branded competitors can use to defend their business from lower-priced competition

• Understand the basics of pharmaceutical marketing and pricing, including the global challenge of defending branded drugs against generic equivalents

• Discuss ethical issues in the marketing of high-margin branded products that have lower-priced alternatives, especially in the healthcare industry

Describe strategies that branded competitors can use to defend their business from lower-priced competition

Understand the basics of pharmaceutical marketing and pricing, including the global challenge of defending branded drugs against generic equivalents

Discuss ethical issues in the marketing of high-margin branded products that have lower-priced alternatives, especially in the healthcare industry

ThoughtWorks, a medium-size IT systems integrator, was growing quickly but identified "lack of clear positioning around which to build a brand" as the biggest impediment to continued growth. The company had identified features that it believed differentiated it from its competitors and was considering alternative segments to target. Asks readers to choose a target and develop a positioning statement for that target as well as identify the assumptions underlying the recommended positioning strategy and suggest how market research could help establish the validity of those assumptions.

Supplements the (A) case.

In 1999 TiVo was preparing to launch its digital video recorder (DVR) in the United States. The company's goal was ambitious: it hoped to revolutionize how Americans watched television and to become a central player in the emerging interactive TV industry.

Although it had a technological advantage, TiVo faced one competitor (ReplayTV) and potential entrants such as Microsoft, so its success was far from guaranteed. Evidence suggested a bright future for the company, however; the concept had attracted $240 million in venture capital, and market research indicated a uniquely high level of consumer interest.

TiVo needed to capture the first-mover advantage and build its sales and brand as quickly as possible to support the company's IPO, which was planned to take place within eighteen to twenty-four months. TiVo's positioning at launch would play a key role in determining its success.

After analyzing and discussing the case, students should be able to:

• Use analogies appropriately to forecast demand

• Use various marketing research techniques to make appropriate inferences about the challenges to consumer adoption of an innovative product

• Develop multiple frames of reference and discuss the merits of each

• Develop multiple points of difference and discuss the merits of each

• Develop multiple positioning statements and discuss the merits of each

Use analogies appropriately to forecast demand

Use various marketing research techniques to make appropriate inferences about the challenges to consumer adoption of an innovative product

Develop multiple frames of reference and discuss the merits of each

Develop multiple points of difference and discuss the merits of each

Develop multiple positioning statements and discuss the merits of each

Steve Meyer, the chief marketing officer at Trilogy, was evaluating the best way to move forward with an innovative, customer value-based pricing approach for its enterprise software solutions. Trilogy had radically transformed its business from a product-centric organization to a customer-centric one, and value-based pricing was a pillar of this transformation. Meyer had to evaluate three pricing approaches: traditional license based, subscription based, and gain sharing. He had to assess which pricing approach Trilogy and Trilogy's clients would prefer and the conditions under which gain-sharing pricing would work. Meyer also had to address several adoption barriers that prevented customers from embracing the gain-sharing pricing approach.

Robert Davidson, pricing manager for Tupelo Medical, was concerned about the variability in price paid for its top-selling product, the Micron 8 Series blood pressure monitoring system. Using historical transaction data, Davidson must determine the appropriate price floor. Setting a price too high risked the loss of a large number of customers, putting the company at substantial risk due to the importance of the product. Setting a price too low would impact Davidson's ability to meet the stated objective of increasing margins by 3 percent. He wondered what the optimal price floor would be and what the expected profits would be for that new price floor. Additionally, the company's business varied considerably by geographic region, account size and account type. As a result, he needed to consider whether it made sense to set a single price floor or whether he could improve profits by allowing some variability in the price floor by customer segment.

• To illustrate how one can build a data-driven pricing model to study the tradeoff between margin and probability of winning a sale in a B2B market

• To quantify the value from implementing a price floor with a B2B sales force

• To demonstrate the incremental value of implementing a price floor that varies by customer segment.

To illustrate how one can build a data-driven pricing model to study the tradeoff between margin and probability of winning a sale in a B2B market

To quantify the value from implementing a price floor with a B2B sales force

To demonstrate the incremental value of implementing a price floor that varies by customer segment.

To recapture lost market share, tobacco giant R. J. Reynolds (RJR) developed Uptown, the first cigarette brand created and targeted specifically at a minority group—in this case, African-Americans. RJR planned to launch a six-month test market in Philadelphia in February 1990, which coincided with national Black History Month. The launch generated grassroots opposition from the black community in Philadelphia, which became intent on ensuring there was “No Uptown in our town or any town.”

After analyzing the case, students should be able to:

• Identify some of the complex issues surrounding targeting specific populations

• Recognize the importance of understanding cultural context

• Recognize the limits of profit-based decision-making

Identify some of the complex issues surrounding targeting specific populations

Recognize the importance of understanding cultural context

Recognize the limits of profit-based decision-making

Wrigley launched Eclipse gum in August 1999. In early 2000, Paul Chibe became senior marketing manager for Wrigley's breath freshening portfolio, which included Eclipse. With the disappointing first-year performance of the brand, Chibe needed to take action to turn Eclipse around. His task was to use the opinions from other Wrigley executives and from marketing research data to decide if Eclipse could be turned around or if it should be abandoned.

After reading and analyzing the case, students should be able to:

• Identify the most important variables that drive the success of consumer package goods brands

• Interpret and use data from various types of marketing research to evaluate marketing mix strategies

• Develop fact-based marketing recommendations

Identify the most important variables that drive the success of consumer package goods brands

Interpret and use data from various types of marketing research to evaluate marketing mix strategies

Develop fact-based marketing recommendations

On April 4, 2013, a video game website reported that the next-generation Xbox console—due to be released by Microsoft the following month—would require an always-on Internet connection in order to operate. The new version of the SimCity game that had been released earlier that year with an always-on requirement had been a disaster. Hardcore gamers reacted negatively to the news.

When the Xbox One console was officially revealed on May 21, Microsoft effectively confirmed that it would require an always-on connection for validating digital rights. Predictably, gamers reacted negatively, a response that was exacerbated when Microsoft's president of the interactive entertainment business, Don Mattrick, made dismissive statements about their concerns

After reading and analyzing the case, students will be able to:

• Address the challenge of marketing a product to multiple adjacent but very different customer segments

• Understand the need for a unified vision before going to market

• Develop a strategy that addresses the complexity of a world in which the company may no longer own the “loudest voice in the room”

Address the challenge of marketing a product to multiple adjacent but very different customer segments

Understand the need for a unified vision before going to market

Develop a strategy that addresses the complexity of a world in which the company may no longer own the “loudest voice in the room”