Case studies

The case compares two U.S. Department of Defense (DoD) programs from the 1970s and 1980s: (1) “stealth” combat aircraft, capable of evading detection or engagement by anti-aircraft systems, and (2) precision attack of hardened ground vehicles from “standoff” distances, i.e., far behind the battle lines. Conceived at roughly the same time, motivated by the same strategic challenge, and initially driven by the same DoD organization, stealth combat aircraft progressed from idea to deployment in less than eight years---an astounding pace for a complex military system---while a demonstrated system for standoff precision strike against mobile ground targets was not fully implemented. The case highlights the critical role of the Defense Advanced Research Projects Agency (DARPA), part of the DoD, regarded as one of the most innovative entities in the U.S. federal government.

The case highlights factors that facilitate rapid, successful implementation of radically innovative or disruptive concepts. Students are introduced to the organizational realities facing such projects, including issues of strategic clarity, interdepartmental competition and cooperation, executive leadership, and timing. Comparing the differences in implementation of the two programs in the case reveals issues relevant to any large organization seeking to bring innovative concepts to fruition.

Align Inc. is a start-up company with a revolutionary, patent-protected new technology for straightening teeth called Invisalign. Invisalign is a set of invisible plastic aligners made to each patient's specific needs that substitute for metal or ceramic braces in adults (it is not sold for children's orthodontic needs). The company has created tremendous consumer awareness and affect for its product, yet sales results are dismal. Requires the reader to analyze the reasons for such poor sales and what to do to remedy the problem.

To examine distribution channel issues as well as the marketing mix for a new product introduction.

The spin-off of Iridium, a global telecommunications system, represented a significant business risk for Motorola, as many talented Motorola executives joined the venture in the late 1990s. This bold technology gamble suffered from numerous marketing missteps, which led to Iridium's bankruptcy in August 1999.

Microsoft's Office team was developing the marketing communication plan for its new product, Office 2007. Office was a very mature product and several versions of the product had been introduced over more than 20 years. As such, the new version had to overcome the consumer perception that the versions of Microsoft Office that they already have are “good enough” for them. The Office 2007 marketing team has come up with a two-step campaign strategy that sought to first create awareness and intrigue using traditional media, followed by the heavy use of digital media to get consumer to experience the product through different types of “digital experiences.” The team needs to decide how much of its advertising spending it should shift from traditional media to digital media, how to design the most effective digital experiences and how to measure the effectiveness of digital experiences. The case is set at a time when digital media were emerging as a promising way to engage consumers more deeply with brands and products, but marketers were uncertain about the relative effectiveness of different digital marketing tactics and the optimal mix of traditional versus digital marketing channels for different product, market and campaign contexts.

To introduce students to the possibilities of “engagement marketing” using emerging digital marketing channels To emphasize the complementary nature of traditional versus digital media and their relative effectiveness at different stages of the consumer journey from awareness to perception change to behavior. To highlight the opportunities and opportunities in designing and measuring the effectiveness of integrated marketing campaigns when digital channels are added to the marketing communications mix.

In February 2003, President and CEO Nick Lazaris faces critical decisions on Keurig's launch of a new consumer coffee brewing system. Keurig has successfully sold single-cup brewing systems through commercial distribution channels and is now expanding to the lucrative consumer segment. However, a meeting with key strategic partners six months prior to launch raised questions about the product design. This prompted the Keurig management team to revisit its decisions on product design, pricing, and the marketing plan. With six months to launch, what should the company do?

From 2002 to 2011, coffee-machine manufacturer Keurig Incorporated had grown from a privately held company with just over $20 million in revenues and a plan to enter the single serve coffee arena for home consumers, to a wholly owned subsidiary of Green Mountain Coffee Roasters, Inc., a publicly traded company with net revenues of $1.36 billion and a market capitalization of between $8 and $9 billion. In 2003 Keurig had introduced its first At Home brewer. Now, approximately 25 percent of all coffee makers sold in the United States were Keurig-branded machines, and Keurig was recognized as among the leaders in the marketplace. The company had just concluded agreements with both Dunkin' Donuts and Starbucks that would make these retailers' coffee available for use with Keurig's specialized brewing system. The company faced far different challenges than when it was a small, unknown marketplace entrant. John Whoriskey, vice president and general manager of Keurig's At Home division, had to consider the impact that impending expiration of key technology patents and the perceived environmental impact of the K-Cup® portion packs would have on the company's growth. Whoriskey also wondered what Keurig's growth potential was, and how the new arrangements with Starbucks and Dunkin' Donuts could be leveraged to achieve it.

This case is intended to illustrate to readers the challenges faced in 2011–2013 by Amazon's CEO, Jeff Bezos, as he guided his company into the exploding tablet market. Faced with the tough decision between focusing on the e-reader market—which Amazon had come to dominate with its Kindle product line—and making a foray into tablets—for which it had no expertise—Bezos chose the latter. Amazon sought to combine platform assets to create an end-to-end experience that would let users find a “sweet spot” in the mix of features and services. This strategy involved critical decisions such as selecting a customer segment to target and a positioning for the new product, dubbed the Kindle Fire, as the tablet market rapidly evolved. The Kindle Fire was designed to put the full Amazon experience right into the laps of customers, and Bezos was betting that his customers would see the Kindle Fire as the physical manifestation of all things Amazon. To achieve this, Amazon was willing to heavily subsidize the Kindle Fire hardware device. The key assumption was that the superior end-to-end experience Amazon had carefully created would lead to incremental purchases of content as well as physical products and services, and the margins thus gained would outweigh the hardware subsidy.

• Position and define target segments for a new product relative to competition as well as to a company's own products

• Articulate a competitor's strategy and how to compete against an incumbent with a disruptive business model and a differentiated position

• Discuss selling an experience (as opposed to a product or device) and how to create a differentiated service experience

• Determine pricing, analyze business model, and calculate revenue/profit for a technology product

Position and define target segments for a new product relative to competition as well as to a company's own products

Articulate a competitor's strategy and how to compete against an incumbent with a disruptive business model and a differentiated position

Discuss selling an experience (as opposed to a product or device) and how to create a differentiated service experience

Determine pricing, analyze business model, and calculate revenue/profit for a technology product

This exercise is one in a series intended to help students learn how to perform financial calculations in marketing contexts.

Kookaburra, a maker of cricket equipment popular in Australia, New Zealand, the United Kingdom, South Africa, and India, was considering two strategies for positioning a new cricket bat in India. Both strategies would cannibalize current sales, and Lulu Popplewell, category manager responsible for the Indian market, needed to calculate the financial impact of both to determine which one she would recommend.

This exercise poses a fictional problem about branding strategy on a new product, and asks students to consider the financial impact of different branding strategies and cannibalization rates.

After completing the exercise, students should be able to:

• Calculate the impact of cannibalization on units and profit for a new product launch

• Determine break-even cannibalization rates

• Understand how different branding decisions may impact the degree of cannibalization they should expect from a new product launch

Calculate the impact of cannibalization on units and profit for a new product launch

Determine break-even cannibalization rates

Understand how different branding decisions may impact the degree of cannibalization they should expect from a new product launch

The senior management team at Leclerc, one of the largest retailers in France, is considering how best to maintain growth in the highly regulated French retail industry. Strict limits on pricing and store construction will significantly limit Leclerc's flexibility; many of the traditional growth levers cannot be used. These regulations also have a major impact on competition. The executives at Leclerc must identify the optimal growth plan and then consider whether it will deliver the desired growth.

The case can be used to examine three areas: growth strategy for established businesses, non-market strategy, and marketing planning. It provides an interesting look at the French retail industry and highlights the role of government regulations in shaping the competitive playing field.

Quantifying the efficacy of marketing is an age-old challenge. As John Wanamaker said a century ago, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” The big difference today, however, is that the Internet enables detailed tracking of marketing campaigns in real time, or near time. Exemplifies how to leverage the Internet to dramatically improve the efficacy of marketing. Centers upon the Microsoft Security Guidance marketing campaign, which was designed to change IT professionals' perception of Microsoft's software product security. The integrated marketing campaign involved print media, analyst relations, and online advertising. The advertising was designed to drive IT professionals to a Web site on security guidance, then sign them up for free in-person security training classes. Illustrates two important best practices for marketing in the Internet age: first, the campaign was designed to be measured, and second, agility was specifically designed into the campaign. In addition to tracking weekly click-through data from the print and online advertising, the campaign also used online pop-up customer perception surveys. Analyzing the click-though data, Microsoft realized it had a problem at the end of the first week of the campaign–there were far fewer signups for the training sessions than anticipated. By the end of the second week the campaign was changed, resulting in a huge improvement in efficacy. Creates a scorecard illustrating the pros and cons of the Microsoft approach compared to a more traditional campaign. Illustrates how, rather than creating big-bang campaigns, high-performing marketing organizations today are continually experimenting. They build flexibility into campaigns and design them to be measured.

To learn how to leverage the Internet in marketing campaigns, analyze click-through data and online survey results acquired in near time, and learn how it is used to fine tune and dramatically improve a campaign. Furthermore, illustrates how nonfinancial metrics can be used to quantify marketing efficacy.