Case studies

Microsoft Office was facing an uphill task in engaging the undergraduate student community. Attracting this audience—the most tech-savvy generation ever—was critical to the future of the Microsoft Office franchise. Microsoft's past advertising efforts to reach this audience had proven lackluster, while its key competitors were gradually entrenching themselves among this demographic. Microsoft's challenge was to determine the best tactics that could successfully connect with this audience. The (A) case describes Microsoft's dilemma and briefly addresses what college students mostly care about: managing homework, creating great-looking schoolwork, preparing for the workplace, and collaborating with friends and classmates. It also provides competitive information, chiefly Google's increasing presence in universities and its focus on the higher education market and the growing influence of Facebook among students and its evolution into a productivity tool. The (B) case describes the qualitative research tools that Microsoft used to get a better understanding of college students: day diaries using Twitter, technology diaries using the Internet and smartphones, focus groups, and one-on-one interviews with students. The case helps students understand the value of ethnographic and qualitative research techniques, draw inferences from the data, and subsequently make recommendations. It illustrates how ethnographic and observational studies enrich research by generating deeper consumer insight than traditional methods.

Students will learn: - How online tools in ethnographic and observational research offer new insights not revealed by traditional survey research - How different qualitative market tools are used to collect data, as well as the pros and cons of different ethnographic research techniques - To interpret and synthesize data from qualitative and ethnographic research - How research can influence a firm's marketing and advertising tactics

Israeli entrepreneur and inventor Dov Moran envisioned the creation of a mobile device that was a small, stand-alone, fully functional mobile phone that could be slipped into a variety of enclosures, or “jackets,” that would provide added functionality and better reflect the personalities of its users. As the development of the Modu phone began to take shape, Moran and his team decided that to ensure the success of the new phone's much anticipated launch, Modu would develop and market the accessory jackets itself. The question now was which of the eight jackets to develop and what factors should be considered in making that decision. The case is about how to estimate optimal product-line extensions after accounting for experience curve and cannibalization effects of products that share similar features, cost, and price. This will require quantitative analysis that estimates the effect of the experience curve and cannibalization on cost, revenues, and ultimately, profit. The issue is how to optimize profits by choosing an ideal set of products.

• Understand the importance of quantitative analysis in launching product-line extensions while taking into account demand and cost side interactions

• Combine both qualitative and quantitative data in choosing a targeted segment

• Reflect on the strategic and financial considerations in choosing a segment for a new technology product

• Evaluate the implications of experience curve and cannibalization when introducing product-line extensions and their impact on the decision under consideration

Understand the importance of quantitative analysis in launching product-line extensions while taking into account demand and cost side interactions

Combine both qualitative and quantitative data in choosing a targeted segment

Reflect on the strategic and financial considerations in choosing a segment for a new technology product

Evaluate the implications of experience curve and cannibalization when introducing product-line extensions and their impact on the decision under consideration

It is February 2011 and Brian France, CEO of NASCAR (the National Association for Stock Car Auto Racing), is facing a crisis. In the last five years, attendance at weekend NASCAR races has fallen 22 percent and television viewership has declined 30 percent. Key marketing sponsors have recently left the sport. At the same time, the U.S. economy was only beginning to recover from an economic recession that had an adverse impact on the sport of auto racing as a whole. Some leaders within NASCAR counseled Brian that these trends in attendance, viewership, and sponsorship stemmed from the recession and that NASCAR should continue with business as usual. But Brian sensed that the industry needed fundamental change and that he, as CEO of NASCAR, was the one that must lead this change.

With Brian at the helm, NASCAR embarked on an unprecedented amount of qualitative and quantitative research to assess the strengths and weaknesses of the entire industry. At the center of this research was the NASCAR consumer. Highly engaged, enthusiastic consumers were at the heart of an industry business model that had been successful for decades. But in 2011, marketing within all of NASCAR needed to transform, as it was clear that consumers were disengaging with the sport.

As the consumer research results unfold, Brian and leaders within NASCAR must make tough choices and set priorities. The case focuses on four key areas in which decisions need to be made by NASCAR leadership: digital marketing and social media, targeting the next-generation NASCAR consumer, enhancing the star power of NASCAR drivers, and enhancing the consumer experience at NASCAR events. Focus group videos offer students a customer-centric deep-dive into these challenges.

At its heart, this is a case about great leadership and transforming marketing throughout an entire industry. A wrap-up video from CEO Brian France summarizes how NASCAR executives tackled the difficult questions posed in the case.

• Understand how deep consumer engagement is at the heart of a successful marketing ecosystem

• Analyze focus group videos to understand the needs of today's consumer

• Prioritize the market segments that should be cultivated as the next-generation consumer

• Understand how differing incentives within an industry are at the heart of many marketing problems

• Analyze a complex set of problems and set and manage priorities

• Understand the importance of leadership in a time of crisis

Understand how deep consumer engagement is at the heart of a successful marketing ecosystem

Analyze focus group videos to understand the needs of today's consumer

Prioritize the market segments that should be cultivated as the next-generation consumer

Understand how differing incentives within an industry are at the heart of many marketing problems

Analyze a complex set of problems and set and manage priorities

Understand the importance of leadership in a time of crisis

This case concerns the promotional activities of Nashua Photo, the nation's largest mail-order photofinishing firm. Discount-price mailers (inserted in local newspapers, for example) were used to generate new customers, but also allowed existing customers to pay a lower price. Students must evaluate not only the results of last quarter's 125 separate promotions in light of this “leakage,” but also the appropriateness of discount-price mailers within Nashua's marketing mix.

By 2009 Netflix had all but trounced its traditional bricks-and-mortar competitors in the video rental industry. Since its founding in the late 1990s, the company had changed the face of the industry and threatened the existence of such entrenched giants as Blockbuster, in large part because of its easy-to-understand subscription model, policy of no late fees, and use of analytics to leverage customer data to provide a superior customer experience and grow its e-commerce media platform. Netflix's investment in data collection, IT systems, and advanced analytics such as proprietary data mining techniques and algorithms for customer and product matching played a crucial role in both its strategy and success. However, the explosive growth of the digital media market presents a serious challenge for Netflix's business going forward. How will its analytics, customer data, and customer interaction models play a role in the future of the digital media space? Will it be able to stand up to competition from more seasoned players in the digital market, such as Amazon and Apple? What position must Netflix take in order to successfully compete in this digital arena?

To examine the benefits and risks of investment in analytical technology as a means for mining customer data for business insights. Students will develop a strategy position for Netflix's investment in technology and its digital media business. Students must also consider how new corporate partnerships and changes to the customer channel model will allow the company to prosper in the highly competitive digital space.

“This case is an updated version of ““Netflix Inc.: DVD Wars”” (UVA-M-0763), and was written as a replacement for it.

A financial analyst is asked to appraise the value of Netflix's stock at a time of unprecedented turmoil for the company. This case introduces customer lifetime value (CLV) as a useful metric for subscription-based businesses.”

In 2009–2010 Procter & Gamble’s Old Spice brand had to respond to two important challenges. First, after a successful rebranding of the Glacial Falls scent into Swagger (see Kellogg Case #5-411-752), Old Spice’s core brand team had to determine its next step in advertising. The options being considered included continuing to advertise Swagger, switching to advertising a different scent, advertising the umbrella brand, or placing an emphasis on body wash instead of on deodorant. This decision also involved proposing both the messaging and the media buy for the option selected. Second, in conjunction with this issue, the brand team had to decide whether the messaging of its advertising should respond to competitor Unilever’s new advertising for Dove for Men, which would be kicked off in an upcoming Super Bowl spot. Students will step into the shoes of Mauricio O’Connell—one of the assistant brand managers of Old Spice—as he and his team brainstorm how to position the brand for another big success.

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

• Ask critical questions to help decide among multiple advertising strategies

• Describe issues for a brand that relate to managing advertising across its portfolio

• Understand how competitive behavior can affect a brand's decision

Ask critical questions to help decide among multiple advertising strategies

Describe issues for a brand that relate to managing advertising across its portfolio

Understand how competitive behavior can affect a brand's decision

This case features Old Spice's efforts to reposition Glacial Falls after sales stagnated in the United States. The challenges in this case are twofold. First, it sets the stage for deciding whether and how to reposition a brand after a period of significant stagnation. This entails a targeting dilemma about whether to keep existing customers or take the risk of losing them to go after a new target. Second, this case examines whether the company should make a sensory change in the product (i.e., the scent) or whether it should undertake a cognitive change in the positioning of the product instead.

The case gives students the valuable experience of making a positioning choice and supporting the rationale for the positioning chosen. Specifically, it can be used to discuss:

Ontela, a technology start-up company, has introduced an innovative service called PicDeck that improves the mobile imaging experience for wireless subscribers. Ontela sells PicDeck to wireless carriers, who in turn private-label the service to their subscribers. Ontela must decide which customer segments it should target for the service and how to create a positioning strategy and a marketing communication plan to promote it. It must also consider the value proposition of the PicDeck service for wireless carriers (its direct customers), who need to be convinced that the service will lead to higher monthly average revenue per user (ARPU) and/or increased subscriber loyalty. Part A of the case provides qualitative information on customer personae that represent different customer segments. Students are asked to develop a targeting and positioning strategy based on this qualitative information. Part B provides quantitative data on customer preferences that can be used to identify response-based customer segments, as well as demographic and media habits information that can be used to profile the segments. Students are asked to revise their recommendations based on the additional quantitative data.

The case reinforces the principles of data-driven customer segmentation, discusses the appropriate criteria for selecting segments, and provides a deeper understanding of the benefits and drawbacks of different approaches to identifying and evaluating segments. The case illustrates how the results of data-driven segmentation may run counter to approaches that rely on “gut feel” or qualitative information alone.

Ontela, a technology start-up company, has introduced an innovative service called PicDeck that improves the mobile imaging experience for wireless subscribers. Ontela sells PicDeck to wireless carriers, who in turn private-label the service to their subscribers. Ontela must decide which customer segments it should target for the service and how to create a positioning strategy and a marketing communication plan to promote it. It must also consider the value proposition of the PicDeck service for wireless carriers (its direct customers), who need to be convinced that the service will lead to higher monthly average revenue per user (ARPU) and/or increased subscriber loyalty. Part A of the case provides qualitative information on customer personae that represent different customer segments. Students are asked to develop a targeting and positioning strategy based on this qualitative information. Part B provides quantitative data on customer preferences that can be used to identify response-based customer segments, as well as demographic and media habits information that can be used to profile the segments. Students are asked to revise their recommendations based on the additional quantitative data.

The case reinforces the principles of data-driven customer segmentation, discusses the appropriate criteria for selecting segments, and provides a deeper understanding of the benefits and drawbacks of different approaches to identifying and evaluating segments. The case illustrates how the results of data-driven segmentation may run counter to approaches that rely on “gut feel” or qualitative information alone.