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published: 01 Jan 1986

  • Topic: Marketing
  • Industry: Perfume
  • Region: Global

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Abstract:
The management of 'Parfums Guy Laroche', a unit of L'Oreal's Perfume and Beauty Division, is worried about the recent decline in sales of Fidji, its first and most successful women's prestige perfume. Fidji's product manager is to carry out an in-depth audit of past marketing and communications strategies.

Pedagogical Objectives:
The case provides extensive data on all the elements of the marketing and communications mixes as well as sufficient market and competition data to appraise the inconsistencies in Fidji's targetting and product positioning strategies implemented since its launch in 1966.

Keywords:
Marketing, Advertising Management, Marketing Management, International Marketing, Consumer Behaviour

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published: 28 May 2014

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Abstract:
Yue Sai is L’Oreal’s troubled Chinese luxury brand. Alexis Perakis-Valat, the new CEO of L’Oréal China, has made it a point of honor to turn the brand around. He has asked Stéphane Wilmet, the brand’s new general manager, to come up with a turnaround plan that will restore L’Oréal’s reputation in China as the world’s best cosmetic marketer. Stéphane Wilmet and Ronnie Liang, Yue Sai’s marketing director, must reconsider everything from Yue Sai’s value proposition down to its media, price, product, and distribution strategies.
Please visit the dedicated case website to to watch commercials and video interviews.

Pedagogical Objectives:
The case shows the challenges that even very successful multinational firms experience when doing business in China. Specific topics discussed include: 1. Functional vs. emotional branding. Can all brands become “passion” brands? Should they? 2. Effects of country of origin, national pride, traditions and cultural beliefs in today’s China. 3. Marketing “masstige” (affordable luxury) brands. How to leverage brand heritage while staying current and relevant in a fast-moving market.

Keywords:
Marketing, Cosmetics, China, Luxury, Branding, Beauty, Advertising

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published: 01 Jan 2007

  • Topic: Marketing
  • Industry: Airline
  • Region: Europe

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Abstract:
This case study takes the perspective of an elite Air France Club 2000 card-holder who has lost valuable luggage. The case takes up his crie du coeur: "Unfortunately, every time I call Air France, I need to start from the beginning, as every time I talk, there is a new employee on the line, and every time I am left with the distinct feeling that nobody knows anything and nobody cares." Why is an elite client treated this way? The case examines a perceived disconnect between the espoused Air France KLM vision of "best service" and the reality of day-to-day operations in the new alliance. Who is responsible, and what should be done?

Pedagogical Objectives:
This case focuses on the following issues: - Authentic leadership - Customer focused corporate culture - Leadership by example, walking the talk and building trust with employees and customers - National culture: the French context - The importance of the "consistency of competence"

Keywords:
Airline Customer Service, French Corporate Culture, Air France Klm Merger, Customer Orientation, Authentic Leadership, Corporate Culture

published: 01 Jan 2002

  • Topic: Marketing
  • Industry: Advertising
  • Region: Europe

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Abstract:
This case analyses the first years of operation of 12Snap, a German start-up launched in 1999 and considered today the largest mobile marketing channel in Europe. It focuses on the changing market positioning and business model of the company, which evolved from B2C mobile retailing to B2B mobile marketing.

Pedagogical Objectives:
Understand how mobile marketing campaigns can be conducted and the underlying technologies which enable them Gain insights on a more aggregate level into how mobile applications can change marketing and advertising methods Understand the entrepreneurial evolution (in terms of business strategy and business model) of a mobile marketing service provider

Keywords:
M-Commerce, Mobile Commerce, Mobile Retailing, Mobile Marketing, Mobile Advertising

published: 13 Apr 2007

  • Topic: Marketing
  • Industry: Consumer Electronic
  • Region: Other Regions

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Abstract:
The case takes place in 2006 and is focussed on Binatone's stabilizer business in Nigeria. Stabilizers are used in many developing countries to transform irregular current (from wall outlets) into a current that is safe for electrical appliances and equipment. Binatone's 1000W stabilizer business was under pressure due to multiple factors. The first source of pressure was that the market had become increasingly price sensitive. The buyers of stabilizers seemed unresponsive to quality differences between different brands in the 1000W category. Second, the market was flooded with low-priced, low quality brands that were not government approved. Finally, the Nigerian government has recently enacted a new set of regulations to ensure the safety of electrical equipment throughout the country. The regulations forced legitimate manufacturers like Binatone to go through a long, expensive and unpredictable approval process. Faced with this situation, management at Binatone was contemplating a number of potential responses to revitalize its 1000W stabilizer business. These included the possibility of changing the standard mark-up policy employed for all Binatone products, the launch of a 1000W stabilizer line extension, and new distribution and communication policies.

Pedagogical Objectives:
1- To familiarize students with the challenge of operating a conventional business in a developing country where the infrastructure, legal framework and competitive context are completely different than those faced in developed countries. 2- To highlight the shortcomings of a standard mark-up policy as a way of setting prices across a range of products. 3- To underline the importance of meeting customer needs by a) providing customers with what they want and b) not providing them with more than they want. Just because a product is better does not mean that customers will buy it. 4- To examine the challenge of launching a line-extension when there are significant risks in terms of cannibalization. In addition, the line extension is potentially inconsistent with the mother-brand (Binatone) and distributors have limited space to stock two 1000W products from the same company. 5- To develop the skill of looking through data and charts in order to find the seeds of a compelling argument for consumers to shift their focus (and potentially their preferences) to a higher priced/higher quality product. 6- To experience the difficulty of developing logical distribution policy in an environment that is somewhat chaotic.

Keywords:
Pricing, Communication Strategy, Line Extension, Branding, Price Competition, Product Line, Distribution Strategy, Consumer Electronic

published: 14 Jan 2010

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Abstract:
Unilever is a solid leader in the Brazilian detergent powder market with an 81% market share. Laercio Cardoso must decide (1) whether Unilever should divert money from its premium brands to target the lower-margin segment of low-income consumers, (2) whether Unilever can reposition or extend one of its existing brands to avoid launching a new brand, and (3) what price, product, promotion, and distribution strategy would allow Unilever to deliver value to low-income consumers without cannibalizing its own premium brands too heavily.
Instructors can access video interviews with the managers mentioned in the case, television commercials, and PowerPoint presentations to be used in the classroom or as handouts on the dedicated case website using the login and password mentioned in the teaching note.

Pedagogical Objectives:
This case deals with the question of whether marketing and branding create value for really poor consumers. It can therefore be used in an MBA, executive education or undergraduate core course on marketing management to illustrate the value of marketing and the marketing approach, or in a brand management course to explore the frontiers of branding. This case can also be used in a consumer behaviour course to examine the motivations and decision-making process of low-income consumers. Alternatively, it can be used in a global marketing or global strategy and management course to study the way multinational companies adapt their strategy to compete in emerging countries.

Keywords:
Media Support, Branding, Low-Income Consumers, Marketing, Poverty, New Product Introduction, Break-Even Analysis, Advertising, Pricing, Poor, Distribution, Promotion, Product, Powder, Detergent, Guimaraes, Brazil, Unilever

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published: 12 Jan 1996

  • Topic: Marketing
  • Industry: Banking
  • Region: Europe

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Abstract:
The Tulipstad Distric, a disguised name, is used as a “pilot” for the merger of two Dutch banks: ABN and AMRO. The financial structure of the two networks is detailed in the case and the Microsoft Excel Software. The software allows exploring the product/market portfolio of the two banks and defining the target portfolio of the new merged entity.

Pedagogical Objectives:
1. Quantitative implementation of market. 2. Segmentation and portfolios. 3. Profitability analysis.

Keywords:
Marketing Financial Services, Market Segmentation, Mergers and Acquisitions, Portfolio Analysis

published: 05 Jan 2000

  • Topic: Marketing
  • Industry: Banking
  • Region: North America

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Abstract:
ABN’s world wide strategy is to serve the largest multinational companies. However it has become unprofitable. This pressure sends the branches looking for more risky loans. The case provides a description of ABN’s credit approval process details of servicing their different segments of credit customers and the dilemmas that ensue.

Pedagogical Objectives:
1. Market segmentation is a service industry which is becoming very competitive. 2. Interaction between strategic marketing choices and the bank’s organisation and policies. 3. The relationship between marketing strategy and risk in banking.

Keywords:
Bank Marketing, Risk and Marketing, Market Segmentation

published: 01 Jan 2004

  • Topic: Marketing
  • Industry: Access Services (Telecom, ISP, Golf Course)

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Abstract:
A fitness center targets customers with different valuations of its service (depending on the distance they need to travel). Customers also have different utilization rates. Depending on available capacity, more or less heavy users should be attracted. The only available variable is pricing.

Pedagogical Objectives:
This exercise allows students to determine the optimal pricing strategy (two-part tariff) to segment a market and discriminate between heavy users and light users to best use its available capacity.

Keywords:
Pricing Strategy, Two-Part Tariff, Access Services, Capacity Constraint

published: 26 Aug 2016

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Abstract:
Read a related Knowledge article "Lessons in Digital Transformation from the Hotel Industry" by David Dubois.

The case focuses on AccorHotels’ ambitious digital transformation, aiming to put the customer back at the center of its strategy and operations. Responding to a powerful wave of digital disruptions in the hospitality ecosystem, from the emergence of review websites, online travel agents and active forums to the rise of new competitors such as Airbnb, the transformation entailed: (1) designing and implementing an innovative content marketing strategy (including online content creation or co-creation, curation and dissemination) (2) incorporating e-reputation as a core business objective, and (3) creating and/or adapting organizational structures – from management to operations – to support this new dynamic and maximize value creation.
The case starts in Fall 2015, when Olivier Arnoux, SVP Customer Satisfaction at AccorHotels, and his team, are asked to devise an ambitious plan to address the new challenges facing major players in the hotel industry brought about by digital disruptions. It follows the decision-making process step by step, from (1) understanding the nature and impact of online content in the customer journey, to (2) building a strategic plan to integrate online insights into AccorHotels’ core business objectives (in particular the importance of e-reputation), (3) redefining where and how value is created, and creating incentive structures aligned with the new objectives. Participants have multiple opportunities to put themselves in the shoes of the protagonists so as to understand the logic behind the decisions taken.
What is novel is the systematic articulation of how digital and social media impact the customer journey, as well as the integration of online content into marketing strategy (i.e., content marketing) and organizational design (i.e., team structure, incentive system), underlining how embracing the digital revolution entails breaking traditional silos between functions such as marketing, strategy, finance and human resources.
Detailed information on the consumer, the ecosystem, the firm, marketing and financial indicators is provided. Teaching notes and accompanying PowerPoint presentations suggest appropriate classroom exercises and include supplemental material and databases for group exercises. Videos provide insight on what drove the digital transformation and vividly illustrate its implementation and initial impressive results. They include interviews with Emilie Couton (Vice President Digital Marketing Asia Pacific), a video-recorded session of Olivier Arnoux on the digital transformation at AccorHotels, as well as examples of content created or co-created by AccorHotels.

Pedagogical Objectives:
This case offers a forum to discuss what it means for a company to engage its digital transformation in order to foster customer-centricity. A discussion of the nature and role of online content in shifting consumer behavior in the hoteling industry serves as a basis to explore how companies can create value at different points of the customer journey and what these steps entail. The case also touches on a variety of important strategic, organizational and operational decisions that the company must undertake to fully leverage online content and can be used to address the following broad questions (Specific questions are available in the teaching note): 1) How does online content stemming from digital and social media create value in the hoteling industry? 2) How can a company actively manage online content and implement a content strategy? and 3) What aspects of its organizational design a company need to remodel in order to maximize value creation through digital and social media.

Keywords:
Digital Transformation, Content Marketing, Customer Centricity, Hoteling & Tourism, Social Media Marketing, Customer Journey, Consumer Experiences, Digital Disruptions e-Reputation, Reputation Management, Accorhotels Booking Airbnb, Tripadvisor, Online Reviews, Social Media Listening, Digital Organizational Integration, Corporate Governance, Value Creation, Strategy and Implementation

Prizes won:
- 2018 Case Centre Best-selling Case in Marketing
- 2018 Case Awards Winner, Marketing Category, Case Centre
- 2017 Case Centre Best-selling Case in Marketing
- 2017 AFM-CCMP Award for the Best case study in Marketing, Finalist

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