Case studies

Mary Kay is one of the best-known direct sellers of women's cosmetics in the world. Its channel strategy is to use independent beauty consultants, who are independent distributors, to sell directly to consumers. Its compensation plan is multilevel, providing commissions to distributors on their own sales as well as the sales of the distributors they recruit. At the time of the case, the company is grappling with a well-established change in consumer behavior—the decline of the stay-at-home mom as she returns to the workforce—combined with the opportunities offered by Internet selling. Focuses on the company's efforts to move with consumer demand and behavior, while remaining true to its core goal of “Improving Women's Lives.” Discusses ways Internet technology can be used throughout the company's channel and supply chain structure, not just as a route to market.

Winner of the 2014 EFMD competition for best case on Indian Management Issues and Opportunities.

After a highly successful third round of funding in 2012, Gaurav Jain, founder of quick service restaurant chain Mast Kalandar, was looking to expand. In addition to opening new stores in other cities, Jain was also hoping to increase the profitability of his existing stores in Bangalore, Hyderabad, Chennai, and Pune. He needed to fully understand the financials of his current operations and identify the key drivers of success at the stores, at both the city and corporate levels. With this understanding, he would be able to evaluate how best to improve the performance of existing outlets and to choose an entry strategy for new cities. Students are asked to develop a financial model for outlets and use it to compare different growth strategies.

After analyzing this case, students will be able to:

• Assess the strategic and operational tradeoffs being made by the CEO of a company in a growing foodservice sector of an emerging market as he establishes and grows his enterprise

• Build a financial model for outlet operations that identifies key drivers of performance and allows for a comparison between different growth strategies

• Strategically prioritize growth opportunities for a company in response to an influx of new capita

Assess the strategic and operational tradeoffs being made by the CEO of a company in a growing foodservice sector of an emerging market as he establishes and grows his enterprise

Build a financial model for outlet operations that identifies key drivers of performance and allows for a comparison between different growth strategies

Strategically prioritize growth opportunities for a company in response to an influx of new capita

Maybelline is the world's leading mass cosmetic company. It enjoys tremendous success and a commanding market share, particularly in the eye makeup category. But Maybelline also acknowledges a weakness in the strategic face segment, most notably in the profitable foundations product lines. Approaches the challenge of successfully growing this important category by looking at every aspect necessary to make this move, including: consumer marketing strategy, consumer behavior and purchasing patterns, demographic analysis, segmentation and targeting, product management, distribution channels, pricing, advertising, and understanding the competitive environment.

Examines the launch of FluMist, the first significant innovation in influenza vaccines in over 50 years. The head of sales and marketing for MedImmune is working through the launch plan for FluMist. In particular, he is struggling with the question of how best to position FluMist. To determine the correct positioning, he has to consider business objectives, competitive set, differentiation, and pricing.

In March 2009, Steve Fowler, vice president of strategy and client service at full-service advertising agency Ayzenberg, had just completed what he considered to be one of the most innovative campaigns he had ever handled. Capcom, a leader in the video gaming industry, had just launched Resident Evil® 5 (RE5), the latest release of one of the industry's most valuable game franchises. RE5, a powerful asset with a passionate fan base, had warranted the use of an online viral, or word-of-mouth (WOM), campaign for its worldwide game launch. Although the creative work and appropriate media for the RE5 launch had been meticulously planned, Fowler was also interested in measuring the effectiveness of the campaign to better serve his client. In the past, measuring WOM was practically impossible. However, a software company named Meteor Solutions had found a way to do exactly that. Fowler and his team had worked with Meteor to execute several campaigns for other clients, but he had never applied Meteor tools on such a large scale. Fowler knew Capcom would want to hear specific WOM figures. What was the return on investment for the RE5 campaign and the implications for future campaigns? Had the Meteor tools provided comprehensive and actionable information, or was more work needed before these solutions could be widely used in advertising?

How to measure the value and fully leverage social media marketing including key success factors, challenges, metrics and implications for future campaigns and other industries.

Michaels Craft Stores is the largest arts and crafts retailer in the United States and in the world. Its CEO, Michael Rouleau, wants to expand the chain to 1,000 stores by 2006. The key constraint is the lack of sophistication among Michaels' supplier base, which is made up of over 1,000 suppliers, many of which are small, creative companies with little computer or logistics knowledge. As a result, the cost of running Michaels' supply chain is high. Describes the company's efforts to build the sophistication of its suppliers through educational Vendor Flow Training courses that teach suppliers how to adopt state-of-the-art practices for improved efficiency in supplying their channel.

John Williams, senior director of marketing for Microsoft's .NET, was trying to build the .NET brand, a comprehensive family of next-generation connectivity software products. Highlights the challenges of branding and positioning a complex technology offering. The first challenge facing Microsoft was to develop a common definition of .NET, which had been in flux over the prior two years. The second challenge was to choose between an umbrella branding strategy, a sub-branding strategy, and an ingredient branding strategy. The third challenge was to create a value proposition that would appeal to three very different target audiences: business decision makers, IT professionals, and developers.

To analyze the branding and positioning of a complex new technology offering: by defining a new product offering for public understanding and comprehension; evaluating brand strategies for optimal effect, considering possible hurdles to implementation of each strategy; and developing a value proposition attractive to differing audiences.

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

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