Case studies

Examines the launch of Xigris, a breakthrough new pharmaceutical product for the treatment of sepsis. The newly appointed head of marketing for Xigris is reviewing the launch plan.

Supplements the (A) case.

An industry adage held that “there are two types of rental car companies: those that lose money and Enterprise.” The company that would become Enterprise Rent-A-Car was started in 1957 in St. Louis, Missouri, by Jack Taylor. Taylor set up Enterprise offices in neighborhoods rather than at airports because he believed that Americans would welcome a local option for renting cars when their own vehicles were being repaired. In 2010 Enterprise had more than 6,000 rental locations in the United States and a fleet of 850,000 cars in service. Its parent, Enterprise Holdings (comprising Enterprise, National, and Alamo brands) accounted for nearly half of the car rental market and was more than twice the size of Hertz, the number two competitor. Enterprise's competitive advantage was the result of the combination of its practices in hiring, training, compensation, organization, customer service, IT, and fleet management, among others.

The Namaste case is a story of how Kellogg alumni couple Gary and Denise Gardner grow their Namaste branded hair care line from production at the family's kitchen table into a formidable $80 million empire within a 14-year period. The Gardners come from a longtime hair-care business lineage, the Soft Sheen dynasty, started by Gary's father decades earlier. Soft Sheen was ultimately sold to hair care giant L'Oreal for over $100 million. The Gardners claim Namaste's growth occurred through listening to the needs and desires of customers for healing hair care products that reminded them of nourishing household remedies. The hair care line became a leader in its industry but faced the dilemma of how to expand sales in new markets, especially international markets such as South Africa and Nigeria.

Students learn to develop new business opportunities including international expansion and tools of the internet to exploit the tools of vision, innovation and change resulting in new customer services and solutions. Students will focus on the basic fundamentals of sales and review the relationship of customer need identification and the reasons that make people buy. Students will assess the entrepreneurial strategies applied to fuel future growth based on an idea or product. Students will focus on the sales fundamentals that can be applied to entrepreneurial environments.

A successful, multigeneration manufacturing family business, with progressive human resources policies, weighs the pros and cons with family owners and company employees of selling the business to meet the challenge of global competition.

Discusses the challenges that internal departments face as organizations grow and expand. The Field Museum in Chicago, Illinois, grew significantly over a short period of time, creating considerable problems in the finance department, as staff and systems failed to keep pace with the evolving demands placed by the museum departments. These problems resulted in outdated policies and procedures, unhappy users, and frustrated employees. The finance department needed big changes but had to make them while maintaining vital functions, improving morale, and instituting new policies and procedures. Discusses several key nonprofit management issues, including change management, the role of leadership in a crisis, the challenge of informal personnel networks and knowledge management, and key financial issues facing nonprofit organizations.

This case looks at an important business task: forecasting a new product. The case can be used to teach finance, marketing (new product introduction), and healthcare strategy. The product is one of Amgen's most important new products: denosumab. On the surface, the case is fairly easy; students simply have to do some simple mathematical calculations. However, the challenges of forecasting quickly become apparent; every forecast depends on some critical assumptions, and the answer can vary dramatically.

Highlight the importance of forecasting as a business task. Give students the opportunity to create a forecast, using logical assumptions to generate an answer. Illustrate how dramatically forecasts can vary. Demonstrate why sensitivity analysis and customer understanding are both critical when trying to forecast a new product launch.

EuroPet S.A. was a multinational company operating gas stations in many European countries. There was a growing propensity for supermarkets to attach gas stations to their retail operations, which was developing into a major threat to EuroPet. As a result, in the mid-1990s, the company began to develop and brand its own convenience stores co-located with its gas stations. However, the company was spending much more on advertising the convenience stores than its competitors did. Management now had to decide if the increase in sales attributed to advertising efforts justified the advertising spend by analyzing the market data from one large metropolitan area: Marseille, France.

Students will learn: how to use cross-tabs and other marketing research tools to identify segmentation descriptors; how to analyze data and interpret results; and how these research results could guide new product development and positioning strategies in order to effectively target relevant customer segments.

A senior product manager for a telecommunications company has been asked to propose ideas for generating new revenue from video gamers who use his company's Internet services. The manager has commissioned the development of “experience maps” for three subsegments within the gamer segment. The experience maps, which are reproduced in the case, provide students with an opportunity to generate customer insights based on real qualitative data.

After students have analyzed the case, they will be more comfortable analyzing unstructured consumer insight data with limited direction, as well as with the inductive reasoning necessary to develop marketing insights based on qualitative research results. They will also have a better understanding of how customer insights can drive product development decisions and a greater understanding of experience maps as a consumer research tool

Pharmaceutical company Genzyme has created a new drug, Renvela, which is a phosphate binder designed to be used primarily by patients with kidney failure. Renvela is a slightly different version of Genzyme's highly successful Renagel. Company executives must now decide how best to launch Renvela. Should it replace Renagel? Should it be a premium version of Renagel? Is it worth launching the product at all? The case appears rather simple on the surface, but the questions are challenging to work through.

This case, launched with great success in the 2009 Kellogg Biotech and Healthcare Case Competition, can be used to teach growth strategy and new product strategy. It also provides an introduction to the pharmaceutical industry. Students will be given the opportunity to think critically about the role of innovation, risk, and ethics in healthcare-related firms.