MKTG 55XX - OLA Summer 2017 Case Questions For each case, each group should provide detailed analysis using one framework from the External Analysis and one framework from the the Internal Analysis. Teams should should then provide their identification of the one main issue, provide 3 alternatives and a recommendation. recommendation. In addition, each team should answer the following questions.
New York Times Paywall
1. Is the Paywall working? 2. How would you evaluate evaluate the current Paywall Paywall compared with the two two prior ones? Do you think it is appropriately designed compared compared with the Financial Times or the Wall Street Journal? 3. Why are newspapers in trouble? What is the goal of The Times in creating the Paywall? 4. Does the paywall seem like a good strategy for newspapers in general?
Starbucks 1. What were the most important i mportant factors behind Starbucks decline in 2007 and 2008? How much of this did Schultz see in 2007? In 2008? Which factors were less obvious? 2. What were the most important i mportant aspects of Starbucks transformation? transformation? Why did these matter to the survival and transformation of the company? How "generalizable "generalizable"" are such initiatives in the broader context of business turnarounds? 3. What do you think Schultz means when he says that Starbucks is "redefining the role of a for-profit company? company? What do you make of Schultz's take on corporate responsibility and the impact on the bottom line?
IKEA
1. What factors have accounted for the success of IKEA 2. What do you think of the company’s product strategy and product range? 3. Despite its success, there are many downsides to IKEA shopping. What are some of these downsides? IKEA’s Vision Statement (Figure C in the case) describes how the company seeks to build a “partnership” with its customers. What do you think of this
vision statement? 4. The fact that IKEA hopes to have 50 stores in operation in the th e U.S. by 2013 is an indication of how optimistic the company is about the t he viability of its value proposition in this country. Do you think IKEA is being overly optimistic in its growth
plans? How would you improve IKEA’s value proposition to make it even more
attractive to American consumers? 5. To achieve the kind of growth that IKEA is hoping for, should the company change its product strategy? If so, in what way(s)? What about its product range – are there limitations to the matrix approach? Should the company expand its product lineup to include a greater number of styles and price points? In what other ways should the company consider changing its product lineup? 6. Some industry observers have suggested that IKEA should open a number of smaller, satellite stores across the U.S. (e.g. in shopping malls, strip malls etc.). By offering a limited range if IKEA products, these “IKEA Lite” should would presumably give
consumers who do not otherwise have access to a full-size IKEA, the opportunity to experience the brand. In addition, consumers who do live near a full-size IKEA would be able to use these mini-outlets to make minor purchases(a set of mugs, as opposed to entire living room set) Do you agree with this idea? Why or why not? Taco Bell in India
1. Identify the key criteria required to succeed in the QSR business in India. Critically evaluate how well Taco Bell managed them. 2. What are the benefits and shortcomings of the decision made by Bajpai in launching Taco Bell in India? 3. Were the decisions made by Varsma consistent with the brand attributes of YUM and Taco Bell? 4. What should Niren Chaudhary, managing director of YUM Restaurants, India, do in the future to lea Taco Bell to success? Louis Vuitton in Japan
1. 2. 3. 4.
What has made LVMH’s business model successful in the Japanese luxury market?
What are the opportunities and challenges for LVMH in Japan? What are the specifics of the Japanese fashion luxury market? How did Louis Vuitton enter into the Japanese market originally? What are the other entry strategies if adopted later to strengthen its presence? 5. Will Louis Vuitton have any new challenges arise due to the global financial crisis? How does it overcome the new challenges? Red Lobster
1. How has Red Lobster’s positioning changed over time? Do the current ads refl ect the repositioning that Lopdrup and his team envisioned when their efforts began in 2004? 2. What were the most effective elements in Lopdrup’s repositioning plan (initiated in2004)?
3. Compute restaurant level profitability under the following scenario: The mix of patrons shifts with the restaurant gaining 2000 new unique Experiential customers, but losing 1000 Indulgent customers and 1000 Frugal customers. 4. Should Lopdrup make Exp erientials the target segment and modify Red Lobster’s positioning accordingly? If so, how should he change its marketing mix (i.e., the 4 Ps)
Sephora
1. Assuming she receives the additional funding. How should Bornstein allocate her budget across the various digital categories? Given that the additional funding requested must be shifte d from Sephora’s other marketing spending, where would you propose to cut? Why? 2. What do you make of Sephora’s digital and social media efforts as of the fall of 2010? Was it wise in your opinion to create Beauty Talk as a separate social platform to Facebook? 3. As Sephora increasingly dabbles with digital marketing and social media, which competitors should the company be most worried about? 4. What metrics do you propose Sephora Direct use to measure the success of its digital efforts going forward? 5. What should be the strategic goal of Sephora’s digital and social marketing programs? How can Bornstein satisfy the CEO’s desire to “win” in the digital space?
Herborist
1. Herborist has gained entry into both the Asian and European markets. What kind of growth strategy should it adopt from this point onward? Should it focus on Asia, Europe or continue to open other continental markets? Should it continue with its existing mode of entry or explore other options? 2. As a Chinese brand, what are the advantages and challenges for Herborist in becoming a global brand? 3. Is Hong Kong a good choice for Herborist to enter the global market? If not, which alternative areas would you suggest? 4. Why did Herborist’s first Hong Kong trial fail? 5. For its further global expansion, should Herborist prioritize emerging markets such as Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, or focus on expanding in European markets? Why? 6. How should Herborist develop its sales network, by continuing to sell through cosmetic chains such as Sephora or by setting up its own retail stores? What are the pros and cons of each option? Which strategy should Herborist take and how should Herborist implement it?
Ruth’s Chris
1. What did Hannah do to make a first cut in the list of potential countries? How did he get from 200 to less than 35 potential new markets? Which variables seemed more important in his decision-making? Which unused variables might have been usefull? 2. What would be your choice for the top five opportunities? The top 10? What equation did you use to reach that conclusion and why? 3. Hannah was focused on franchising as his mode of entry. Do the critical variables change if a different mode of entry is employed? 4. What are some of the internal and external challenges Hannah will face in moving from a list to actually opening restaurants?
JC Penny
1. Evaluate the overall effectiveness of the “Fair and Square” repositioning strategy. How well or poorly do all of the elements work together or work at odds with one another to deliver a coherent whole? What elements are missing? 2. What do the first and second quarter results indicate about he “Fair and Square” strategy? Are the first two quarters of results enough to validate or invalidate the changes? How would you respond to them? 3. Are the results due to a faulty strategy or to a faulty execution of a solid strategy? Would you expect similar or dissimilar results if the changes had been implemented more slowly or in a different timing sequence? 4. What assumptions about J.C. Penney’s 5 C’s (customers, competitors, collaborators, context, and company) must hold true for the repositioning to be effective? What does Johnson perceive in these factors that lead him to believe that “Fair and Square”
pricing can be a successful approach for J.C. Penney? How confident are you that these assumptions are correct? 5. Is J.C. Penney a brand that can be “Target -ized” or “Apple’ized”? Why or why not? In what fundamental ways does J.CPenney differ from theses two brands? Does Johnson’s plan address these d ifferences in ways that make the success of J.C Penney’s new
strategy more or less likely? 6. Is Johnson’s past retail experience helping or hurting him as he tries to achieve his goal of making J.C. Penney “America’s favourite store”?
7. Do you agree with the changes Johnson is making to the pricing scheme that are set to take effect August 1 st? Are they enough to turn things around? 8. What should Johnson do now? Looking out one year, will J.C. Penney be a stronger or weaker brands if he stays on the current course?
Hilton
1. 2. 3. 4.
What should Diskin do? What are the Strengths and Weakness of the Hilton HHonors Program? What is the Optimum Level of Spending on the Program? How would you quantify the value of HHonors program to Hilton? How does the value generated by the program compare to the program’s cost?
5. What is Starwood doing and how should Hilton Respond?
Colgate
1. Given that Colgate Canada plans to hike its marketing spend by $3 million for the toothpaste category, how would you spend it? 2. Describe the characteristics of demand and segmentation in the toothpaste market. 3. What is the typical buying and decision process for a consumer buying toothpaste? How do the various elements in the marketing mix influence the buying process so that Colgate’s product is ultimately the one that is purchased? 4. Outline the effectiveness of Colgate’s marketing mix.
5. 6. 7. 8.
How do the main competitors compete and differentiate in this market? What is the share point value? How do you think competitors will react? Discuss the pros and cons of the alternatives listed in the case.
Tata Communications Limited (TCL)
1. Does TCL need a second home market? How dies expansion into new geographies add value? 2. Is Russia a suitable home market for TCL? How does it compare with other emerging market options? 3. What are the various entry options for a market like Russia? Compare & contrast acquisitions with alliances as well as with organic/own play. 4. Evaluate Pascal as an appropriate entry vehicle into Russia. What are its strengths and weaknesses? 5. What challenges or risks would TCL face if it acquired Pascal?
The Globalization of the NFL
1. Why was the NFL unsuccessful in its globalizations attempts? 2. How can a professional sport generate value globally? 3. What strategy would you advise?