Scenario 1: Clean Edge Razor: Splitting Hairs in Product Positioning description
After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men’s market where it has a strong presence. Jackson Randall, the product manager for Clean Edge, struggles with how best to position the product for the launch. One strategy is to release Clean Edge as a “niche” product, targeting the high-end market of fastidious groomers looking for superior skin care products.
Another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available. Randall meets internal resistance to the mainstream strategy from the product manager for the company’s current, but aging, mainstream razor products and he must consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy and provide supporting economic analysis of his decision–not just for Clean Edge, but for its effect on the entire company.
Explore issues associated with strategic product positioning. Review new product development process and understand the importance of evaluating product-company and product-market fit in assessing new product opportunities. Understand the importance and marketing implications of determining whether a new product is a big breakthrough or a simple line extension.
Marketing strategy; New product marketing; Product positioning;
Profitability analysis; Quantitative analysis Setting:
* Geographic: United States
* Event Year Begin: 2010
Scenario 2: Culinarian Cookware: Pondering Price Promotion description
Subjects Covered: Price Promotion, Pricing Policy, Consumer Marketing, Profitability Analysis, Retailing, Sales Promotion, Distribution Policy, Brand Equity, Trade Relations, and Product Management. In November of 2006, senior executives at Culinarian Cookware were debating the merits of price promotions for the company’s premium cookware products. The VP of Marketing, Donald Janus, and Senior Sales Manager, Victoria Brown, had different views. Janus felt price promotions were unnecessary, potentially damaging to the brand image, and possibly encouraged retailer hoarding; Brown believed the promotions strengthened trade support, improved brand awareness, and stimulated sales from both new and existing customers.
The issue was complicated by a consultant’s study of the firm’s 2004 price promotions which concluded that these promotions had a negative impact on profits. Janus trusted the results, but Brown, believing the study assumptions were flawed and required further analysis, suspected the promotions had actually produced positive results. The pressing decision is whether to run a price promotion in 2007 and, if so, to determine what merchandise to promote and on what terms. The broader issue is what strategy Culinarian should pursue to achieve sales growth goals, and what role, if any, price promotion should play. Subjects Covered: Price Promotion, Pricing Policy, Consumer Marketing, Profitability Analysis, Retailing, Sales Promotion, Distribution Policy, Brand Equity, Trade Relations, Cookware Learning objective:
1. Explore the risks and opportunities of price promotion as a strategic and tactical marketing tool. 2. Through quantitative analysis, evaluate the financial impact of a price promotion using different cost and sales assumptions. 3. Develop the details of a price promotion policy consistent with overall marketing objectives.
Brand equity; Consumer marketing; Pricing policies; Profitability analysis; Sales promotions; Small & medium-sized enterprises Setting:
* Geographic: United States
* Event Year Begin: 2006
Scenario 3: Metabical: Positioning and Communications Strategy for a New Weight Loss Drug (Brief Case) description
Topics include Consumer Behavior, Marketing Communications, New Product Launch, Product Positioning, and Push/Pull Marketing. This case can be used separately or in conjunction with Brief Case #4183, Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight Loss Drug. Cambridge Sciences Pharmaceuticals (CSP) expects final approval for its revolutionary weight loss drug, Metabical. Metabical will be the only weight loss drug with FDA approval that is also clinically proven to be effective for moderately overweight people.
Barbara Printup, Senior Marketing Director for CSP, must develop the positioning strategy and marketing communications plan in preparation for the launch of the new drug. Printup must consider the consumer decision-making process and the interaction between the consumer who purchases the drug and the health care provider who prescribes the medication. Despite promising medical studies and consumer research, poor positioning of the drug in the highly competitive market for weight-loss solutions could spell disaster. Students analyze market research data and consider the optimal positioning strategy and marketing communications program.
Understanding the hierarchy-of-effects, the decision-making unit, the decision-making process, and push vs. pull communications. Identifying strategies for segmenting, targeting, and positioning new products. Understanding the critical elements of a marketing communications program.
Consumer behavior; Marketing communications; Product introduction Setting:
* Geographic: United States
* Industry: Pharmaceuticals
* Event Year Begin: 2008
Scenario 4: Reed Supermarkets: A New Wave of Competitors description
Reed Supermarkets is a high-end supermarket chain with operations in several Midwestern states. Meredith Collins, vice president of marketing, visits stores located in Columbus, Ohio, an important region with the largest market and the greatest impact on revenue growth. She is concerned about increased competition from dollar stores and limited-assortment stores offering very low, appealing price points. Reed’s market research shows that as a result of the economic downturn, customer loyalty is dwindling and consumers are willing to go to multiple stores to get the best deals. Collins must decide whether to change the current marketing and positioning plan in an effort to increase market share to meet challenging corporate targets. Her options include retreating from price competition and focusing on quality or embracing more private-label brands and competing more aggressively on price. She can also maintain the current positioning and appeal to customers looking for a quality shopping experience. The case contains an implicit quantitative assignment that instructors can emphasize to the degree they choose.
Explore elements of marketing strategy, market segmentation, product differentiation, and product positioning for a retail organization. Analyze and differentiate among conflicting strategic perspectives. Understand the “cycle of retailing,” which suggests that new retail stores naturally evolve from low-price, low-overhead stores to become upscale retailers offering additional services and product lines.
Competitive strategy; Consumer marketing; Market positioning; Market segmentation;
Marketing strategy Setting:
* Geographic: United States
* Industry: Supermarkets
* Event Year Begin: 2011
Scenario 5: TruEarth Healthy Foods: Market Research for a New Product Introduction (Brief Case) description
Topics covered include: consumer marketing, market research, new product introduction, and quantitative analysis. TruEarth Healthy Foods, a maker of gourmet pastas, sauces, and meals, wants to build on its successful introduction of fresh whole grain pasta by introducing a similar product concept for pizza. In an increasingly competitive market, TruEarth is focused on beating its competition and wants to act quickly and decisively. The company conducts extensive market research, first using focus groups to test the concept and then following up with take-home trials. Acting as brand managers, students must complete a quantitative analysis of the available data to project the sales volume for pizza and then decide whether to bring the new product to market.
1. Understand the assumptions and techniques for estimating markets and projecting sales 2. Analyze and interpret data to decide whether to bring a new product to market 3. Recognize the importance of perceived value to consumers for a new product as compared with existing products 4. Understand the limitations of making decisions based on research and available data