How Instant Cameras Work

In black-and-white instant photography's early dates, the camera user had to pull the exposed instant picture from the camera, wait about one minute, peel off a piece of paper, and use a small sponge to apply a chemical coating to the picture to stop its development. Then, the picture had to dry before someone could safely handle it. When Polaroid introduced color instant photography in 1963, the technology had advanced to the point that, although users still had to time the picture's...

Exhibit 8

Results of Japanese Consumer and Dealer Surveys 1992-1995 Forty-five percent expressed their interest in buying a car navigation system in one or two years two percent had already purchased one. Those who would buy a system were willing to spend 500- 1,000 (50 percent), 1,000- 2,000 (40 percent) and 2,000+ (10 percent). Seventy-five percent of those who would buy a system rated accuracy of road map as an important factor for their purchase decision, followed by detailed traffic information (56...

Discussion Questions

Differentiate between natural and strategic competition. Give examples. 2. What are the basic elements of strategic competition Are there any prerequisites to pursuing strategic competition 3. How do economists approach competition Does this approach suffice for businesspeople 4. What is the industrial organization viewpoint of competition 5. Identify, with examples, different sources of competition. 6. How does industry structure affect intensity of competition 7. What are the major sources of...

Exhibit

Is our planning really strategic Do we try to anticipate change or only project from the past Do our plans leave room to explore strategic alternatives Or do they confine us to conventional thinking Do we have time and incentive to investigate truly important things Or do we spend excessive planning time on trivia Have we ever seriously evaluated a new approach to an old market Or are we locked into the status quo Do our plans critically document and examine strategic assumptions Or do we not...

New Product Portfolio Approach Porters Generic Strategies Framework

Porter has identified three generic strategies (a) overall cost leadership (i.e., making units of a fairly standardized product and underpricing everybody else) (b) differentiation (i.e., turning out something customers perceive as unique an item whose quality, design, brand name, or reputation for service commands higher-than-average prices) and (c) focus (i.e., concentrating on a particular group of customers, geographic market, channel of distribution, or distinct segment of the product...

Achieving Strategic Planning Effectiveness

As mentioned above, most companies have made significant progress in the last 10 to 15 years in improving their strategic planning capabilities. Clear, concise methods have been developed for analyzing and evaluating market segments, business performance, and pricing and cost structures. Creative, even elegant, methods have been devised for displaying the results of these strategic analyses to top management. Few today would argue the value in theory at least of the strategic approach to...

Environmental Changes

Playboy is a victim of the social changes it helped promote. Attitudes toward sex have evolved rapidly since the days when the magazine could shock millions by publishing two photographs of an undraped Marilyn Monroe. Today, Playboy must compete, not only with countless far more lurid skin books, but also against the popular media. Rock songs may have X-rated lyrics and an episode of Dynasty may be nearly as titillating as a centerfold. As Ms. Hefner puts it, We no longer can contrast ourselves...

Alternative 1ljterally Do Nothing

The Lock Company could literally do nothing and continue to do business under the two separate company names. McDern listed this alternative, although he knew it would not be considered. The Lock Company had already made the decision to combine the various parts of the company operations and look for a new brand name. As stated before, there were no more economies of scale operating under separate names. Still, it was an alternative in the event that no new brand name could be agreed upon. A...

Exhibit 155

Customer Information Needed for Pricing Strategy 1. The customer's value analysis of the product performance, utility, profit-rendering potential, quality, etc. 2. Market acceptance level the price level of acceptance in each major market, including the influence of substitutes. 3. The price the market expects and the differences in different markets. 5. The product's S curve and its present position on it. 6. Seasonal and cyclical characteristics of the industry. 7. The economic conditions now...

Environmental Scanning And Marketing Strategy

The impact of environmental scanning on marketing strategy can be illustrated with reference to videotex technology.24 Videotex technology the merging of computer and communications technologies delivers information directly to the consumer. The consumer may instantly view desired textual and visual information from on-line databases on television screens or other video receivers by pushing the appropriate buttons or typing the proper commands. Possibilities for business and personal use of...

Info

Million reservation calls per year.4 This translated into about 274,000 calls per day (or about 3 calls per second). Similarly, large banks, on average, processed about 65,000 calls per day. Companies in these industries had looked to voice response and messaging systems as a way to create efficiencies and automate portions of their operations. The total 1993 revenue for the domestic 4 AMR Wields SABRE, Private Net, ComputerWorld, May 1, 1989. voice response and voice messaging systems in the...

Average Shares Outstanding Assuming Dilution

See Notes to Consolidated Financial Statements. See Notes to Consolidated Financial Statements. anywhere it turned, it faced the prospect of having to sacrifice profitability to increase sales. With the average American already swilling more than 800 servings of soda a year, skeptics wonder how much growth could be wrung out of the United States. The flagship brands, Coke Classic and Diet Coke, are still growing at roughly 4 percent a year, but they might be approaching the limit. In recent...

1

Objective To reach the optimal number of customers in a timely manner at the lowest possible cost while maintaining the desired degree of control. Requirements Comparison of direct versus indirect distribution on the basis of (a) cost, (b) product characteristics, (c) degree of control, and (d) other factors. Costs (a) Distribution costs. (b) Opportunity costs incurred because product not available. (c) Inventory holding and shipping costs. Product Characteristics (a) Replacement rate. (b)...

Global Market Strategies

One of the most significant developments in recent years has been the emergence of global markets. Today's market provides not only a multiplicity of goods but goods from many places. It would not be surprising to discover that your shirt comes from Taiwan, your jeans from Mexico, and your shoes from Italy. You may drive a Japanese car equipped with tires manufactured in France, with nuts and bolts produced in India, and with paint from a U.S. company. Gucci bags, Sony Walkmans, and McDonald's...

Focusing on the Customer

Businesses compete to serve customer needs. Not only are there different types of customers, but their needs vary, too. Thus, most markets are not homogeneous. Further, the markets that are homogeneous today may not remain so in the future. In brief, a market represents a dynamic phenomenon that, influenced by customer needs, evolves over time. In a free economy, each customer group tends to want a slightly different service or product. But a business unit cannot reach out to all customers with...

Exhibit 164

Selection of Suitable Distribution Policies Based on the Relationship between Type of Product and Type of Store Selection of Suitable Distribution Policies Based on the Relationship between Type of Product and Type of Store The consumer prefers to buy the most readily available brand of a product at the most accessible store. The consumer selects his or her purchase from among the assortment carried by the most accessible store. The consumer purchases his or her favorite brand from the most...

Marketcommitment Strategy

The market-commitment strategy refers to the degree of involvement a company seeks in a particular market. It is widely held that not all customers are equally important to a company. Often, such statements as 17 percent of our customers account for 60 percent of our sales and 56 percent of our customers provide 11 percent of our sales are made, which indicate that a company should make varying commitments to different customer groups. The commitment can be in the form of financial or...

Customer Functions

Through the penetration of new customer groups, the addition of products serving related customer functions, or the development of products based on new technologies. As shown in Exhibit 5-4, these changes are caused by three fundamentally different phenomena The adoption and diffusion process underlies the penetration of new customer groups, a process of systemization results in the operation of products to serve combinations of functions, and the technology substitution process underlies...

Few More Months Of Frenetic Activity The Design Of Farggi Tubs Ice Cream

Once the decision to open their own parlours had been made, there began a frantic race against time. Numerous operational details concerning the new ice cream parlours and the range of ice creams had to be decided. They designed a new logo with the Farggi brand name and considered different names for their new establishments (they did not want to call them ice cream parlours). They did not know what name to give their ice cream containers either. Finally, they decided that the formal name would...

Customer Segmentation

In the snowmobile example, the served market consisted of one segment. But conceivably, the served market could be much broader in scope. For example, the company could decide to serve all industrial customers (large, medium, small) by offering diesel-driven snowmobiles for delivery use. The broader served market, however, must be segmented because the market is not homogeneous that is, it cannot be served by one type of product service offering. Currently, the United States represents the...

Factors In Appraisal Corporate Resources

The resources of a firm are its distinctive capabilities and strengths. Resources are relative in nature and must always be measured with reference to the competition. Resources can be categorized as financial strength, human resources, raw material reserve, engineering and production, overall management, and marketing strength. The marketing strategist needs to consider not only marketing resources but also resources of the company across the board. For example, price setting is a part of...

Concept Of Strategy

The pattern of major objectives, purposes, or goals and essential policies and plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. Any organization needs strategy (a) when resources are finite, (b) when there is uncertainty about competitive strengths and behavior, (c) when commitment of resources is irreversible, (d) when decisions must be coordinated between far-flung places and over time,...

Pricing Strategy For New Products

The pricing strategy for a new product should be developed so that the desired impact on the market is achieved while the emergence of competition is discouraged. Two basic strategies that may be used in pricing a new product are skimming pricing and penetration pricing. Skimming pricing is the strategy of establishing a high initial price for a product with a view to skimming the cream off the market at the upper end of the demand curve. It is accompanied by heavy expenditure on promotion. A...

The Current Situation

In preparing for the strategic plan, Gwen Hearst reviewed the available information for the mouth-wash market and Scope. As shown in Exhibit 2, in 1990, 75 percent of Canadian households used one or more mouthwash brands and on average, usage was three times per week for each adult household member. Company market research revealed that users could be segmented on frequency of use heavy users (once a day or more) comprised 40 percent of all users, medium users (two to six times a week)...

Psychology Of Shaving

The battle between Bic and Gillette is more than a conventional contest over which kind of razor people want to use. It is a battle over one of the most enduring male rituals of daily American life. Those of us who are old enough remember how the ritual used to be conducted because many of us watched it every morning. Like a chemist with mortar and pestle, our fathers would whip up a rich lather by stirring their shaving brushes around in their large ceramic mugs. Like an orchestra conductor...

From Vision To Reality

Although Polaroid had devoted an extraordinary amount of time and energy to the Joshua Project before its final approval, the camera and the film were still in the development stage. Polaroid employees throughout the company still had to solve many problems. Manufacturing had to install a new computer-aided design (CAD) system and select a new material and design for the camera's mainframe. The camera would employ through-the-lens viewing, the same viewing system found on millions of 35mm...

S25

Note During 1992 the company elected to early adopt the new Financial Accounting Standards pertaining to Postretirement Benefits (FAS 106) and Income Taxes (FAS 109). This decision affects the comparability of 1992 reported results with those of prior years. Management believes that readers of the company's financial statements need to be fully aware of the impact the adoption of these Standards has on 1992 operating results and earnings per share. Excluding the financial impact of these...

Exhibit 171

Criteria for Determining Promotion Mix 1. Household versus business customers 1. Financial resources of the organization 2. Traditional promotional perspectives 1. Relative price relative quality is high. This necessitates an emphasis on personal selling. Durable goods are bought less frequently than nondurables and usually require a heavy commitment of resources. These characteristics make personal selling of greater significance for durable goods than advertising. However, because many...

Competition Gets Tougher And It Becomes Necessary To Install Freezer Cabinets In Restaurants

Unfortunately for Farggi, in the late 1980s and early 1990s, the big Spanish ice cream companies, many of them owned by multinationals, started to develop their own ad hoc product lines for the catering segment. Companies such as La Menorquina (previously Marisa), Frigo, and Miko started to launch products with formats (sizes and appearance) similar to those of Farggi, although without seeking to position themselves on the same high quality level. They sold at lower prices, with advertising...

Light Commitment Strategy

Definition Having only a passing interest in the market. Requirements Avoid investing for any long-run benefit. Expected Results Maintenance of status quo (no increase in growth, profits, or market share). Definition Discouraging customers in general or a certain class of customers in particular, either temporarily or permanently, from seeking the product. Objective To maintain customer goodwill during periods of shortages. Requirements (a) Monitor customer time requirements. (b) Ration product...

Global Market Environment

Not only are the risk factors underlying the mode of entry largely contingent on the nature of the foreign environment, but these environmental forces also influence the development of marketing strategies. Decision making for expansion into global markets is strategically similar to the decision-making process guiding domestic marketing endeavors. More specifically, four marketing strategy variables product, price, distribution, and promotion need to be as systematically addressed in the...

Exhibit 2

Main Credit Products Managed by the Consumer Credit Division There are two types of personal loans demand loans and term loans. Demand loans must be repaid immediately upon request by the bank. Term loans must be repaid in full by an agreed upon date, although the loan can be paid out at any time without penalty. Term loans typically run less than 72 months, but can go as long as 300 months in special circumstances. Term loans require the borrower to make regular (usually monthly) payments...

History Of The Company

In 1957, Jes s Farga opened a traditional food retail store on Mayor de Gracia Street in Barcelona, near Plaza Lesseps. About five years later, after attending occupational training courses in cake making, he turned his food shop into a cake shop, keeping the same name Farga. With the cake shop operating, he married Magdalena Bertr n and had four children Elena, Margarita, Lu s and Eduard. About five years after that, Jes s Farga opened his second cake shop, on the Paseo de San Gervasio, in a...

Intensity Or Degree Of Competition

The degree of competition in a market depends on the moves and countermoves of various firms active in the market. It usually starts with one firm trying to achieve a favorable position by pursuing appropriate strategies. Because what is good for one firm may be harmful to rival firms, rival firms respond with counter strategies to protect their interests. Intense competitive activity may or may not be injurious to the industry as a whole. For example, while a price war may result in lower...

Introduction

The morning meeting was on her mind as Pat Skene, vice president of the Consumer Credit Division of the CIBC Personal and Commercial Bank, entered her office on June 5, 1995. Pat was not sure if her department had the time, energy, or budget to continue promoting Bankware II. Bankware II was a software diskette that provided users with information on CIBC products and services and allowed users to do financial planning, including calculating mortgage and loan plans. While Bankware had been well...

Io Io

Falling demand for the product and limited growth potential. 2. A shrinking number of competitors (survivors gain market share through attrition). 3. Little product line variety. 4. Little, if any, investment in research and development or plant and equipment. The competitive position of an SBU should depend not only on market share but also on such factors as capacity utilization, current profitability, degree of integration (forward or backward), distinctive product advantages (e.g., patent...

Is There A Winning Strategy

The jury was still out for both FedEx and UPS. Neither was discussing market share or disclosing specific financial results in China. However, each said its operations were growing and profitable, and each contended that its approach was better. In the Spring of 1998, UPS executives, buffered by their lower spending from much of the turmoil in Asia, had been quietly congratulating themselves on the apparent wisdom of their low-risk approach. As freight traffic slowed in the region, UPS had...

Iv

Definition The product-scope strategy deals with the perspectives of the product mix of a company. The product-scope strategy is determined by taking into account the overall mission of the business unit. The company may adopt a single-product strategy, a multiple-product strategy, or a system-of-products strategy. Objectives (a) Single product to increase economies of scale by developing specialization. (b) Multiple products to cover the risk of potential obsolescence of the single product by...

Ix

Definition The value-marketing strategy concerns delivering on promises made for the product or service. These promises involve product quality, customer service, and meeting time commitments. Objectives Value-marketing strategies are directed toward seeking total customer satisfaction. It means striving for excellence to meet customer expectations. Requirements (a) Examine customer value perspectives. (b) Design programs to meet customer quality, service, and time requirements. (c) Train...

Kortec and Wrenware Architectural Hardware

Tim McDern was just getting in from his weekly tennis match. The match, a victory, had provided a short but much-needed break from the problem he was facing as Director of International Sales of Kortec and Wren-ware Architectural Hardware. Kortec and Wrenware Architectural Hardware were two separate and distinct companies in the architectural hardware business operating as a single division of a Fortune 100 company (The Lock Company) in central Connecticut. Each...

Legend

The plantations were not located near expressways, and required considerable backroads driving. A map, like that shown in Exhibit 1, was a necessity. For tourists without their own transportation, organized tours were the only way they could get to the plantation homes. A visitor could obtain specific information about the plantation tours in two basic ways. First, the tourist might contact a travel agent either specifically inquiring about a plantation visit or...

Less Affluent

A closer connection between segmentation methods and new product development. Computer choice models (using information about the attribute trade-offs that consumers make) can now find the best segments for a given product profile or the best product profile for a given market segment. The growing availability of computer models (based on conjoint data) to find optimal additions to product lines products that best balance the possibility of cannibalization of current products with competitive...

Lever Brothers Organization Household Products

Lever Brothers was a decentralized company that had three operating divisions. These were Household Products (HHP), Personal Products (PPD), and Foods. Each division had its own president and officers, and each was responsible, as far as is practical, for all resources and services necessary for its operation. This organizational structure was completed in 1981. The sales force sold Lever's household products throughout the United States. To facilitate this selling activity, the sales force was...

Leverage Points

Higher-yield lower-cost raw materials Source Roberto Buaron, New-Game Strategies, The McKinsey Quarterly (Spring 1981) 35. Reprinted by permission of the publisher. Also, How to Win the Market-Share Game Try Changing the Rules. Reprinted by permission of the publisher, from Management Review (January 1981) 1981. American Management Association, New York. All rights reserved. Xerox, which in 1974 had accounted for more than half of the low-end market, saw its share shrink to 10 percent in 1978....

LOral Nederland BV Product Introduction

Yolanda van der Zande, director of the Netherlands L'Oreal subsidiary, faced two tough decisions and was discussing them with Mike Rourke, her market manager for cosmetics and toiletries. We have to decide whether to introduce the Synergie skin care line and Belle Couleur permanent hair colorants. Synergie had recently been successfully introduced in France, the home country for L'Oreal. Belle Couleur had been successfully marketed in France for two decades. Mr. Rourke responded Yes and if we...

Luis Farga Also Goes To Harvard First Direct Contact With Hagen Dazs Managers

In June 1991, Luis Farga, Jes s Farga's third child and Margarita's brother, graduated in economics. Then, like his sister, he went to Harvard University to follow an extension management course. Once there, he too was fascinated by the quality of North American premium ice cream and, like Margarita, insisted that Farggi should start to make and sell it in Spain. During a visit made by his father, they decided to make an appointment with Haagen Dazs in order to explore the possibility of doing...

Market Emergence

Customer need gives rise to a market opportunity, and a market emerges. To judge the worth of this market, an estimate of market potential is important. If the market appears attractive, the strategist takes the next step of delineating the market boundary. This section examines the potential of the market. Simply stated, market potential is the total demand for a product in a given environment. Market potential is measured to gain insights into five elements market size, market growth,...

Market Share Of Film Purchased

Instant Film Packs and Exposures Disc Film Discs and Exposures 126 Film Cartridges and Exposures 110 Film Cartridges and Exposures 35mm Slides, Rolls and Exposures 35mm Print, Rolls and Exposures This data provided by Stanley Morgan & Co., not Polaroid. Its use here Is for case purposes only

Marketentry Strategy

Market-entry strategy refers to the timing of market entry. Basically, there are three market-entry options from which a company can choose (a) be first in the market, (b) be among the early entrants, or (c) be a laggard. The importance of the time of entry can be illustrated with reference to computers. Experience has shown that if new product lines are acceptable to users and if their impact is properly controlled through pricing and contractual arrangements, sales of an older line can be...

Marketing

Cindy and Faye were concerned with Nottoway's ability to serve the tourism market, their main source of guests. We're looking at where we want to go to fully serve our clients, stated Cindy. We want to provide a well-rounded, balanced product. Currently, we can't fully service motor coaches or business groups. Faye had no data concerning the source of individual visitors (local, out of state, etc.) or how visitors learned of Nottoway, but she believed that most people learned about the...

Marketing Strategy

Gillette's marketing strategy was equally unique. The slower growth that scared Wall Street in 1997 was caused partly by Gillette's decision to run down stocks of its Sensor and Atra shavers ahead of the week's launch. While most rivals would consider this suicidal, Gillette used the strategy to ramp This case was prepared as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. up prices of new products. Mach3 would sell...

Marketplace

Kodak and Fuji have been slugging it out for three equally important parts of the consumer photo This case was prepared as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. business. Those little yellow and green film boxes are the most obvious to the man in the street, but Fuji and Kodak also manufacture photographic paper, mostly for sale to big photo-processing laboratories and small retail developers. To ensure a...

Markets

Western European market shares fluctuated depending on two main factors significant changes in relative prices and the success of new models. The top management of the PSA Group was preoccupied with the price war that had been taking place since 1990. They were also concerned with monetary fluctuations within Europe, particularly with the competitive devaluations of sterling, the peseta, and the Italian firs (about 38 percent since 1992), which had upset sales at the beginning of the 1990s. PSA...

Meaning Of Competition

The term competition defies definition because the view of competition held by different groups (e.g., lawyers, economists, government officials, and businesspeo-ple) varies. Most firms define competition in crude, simplistic, and unrealistic terms. Some firms fail to identify the true sources of competition others underestimate the capabilities and reactions of their competitors. When the business climate is stable, a shallow outlook toward the competition might work, but in the current...

Meaning Of Corporate Appraisal

Broadly, corporate appraisal refers to an examination of the entire organization from different angles. It is a measurement of the readiness of the internal culture of the corporation to interact with the external environment. Marketing strategists are concerned with those aspects of the corporation that have a direct bearing on corporate-wide strategy because that must be referred in defining the business unit mission, the level at which marketing strategy is formulated. As shown in Exhibit...

Meaning Of Strengths And Weaknesses

Strengths refer to the competitive advantages and other distinctive competencies that a company can exert in the marketplace. Andrews notes that the distinctive competence of an organization is more than what it can do it is what it can do particularly well.1 Weaknesses are constraints that hinder movements in certain directions. For example, a business short of cash cannot afford to undertake a large-scale promotional offensive. In developing marketing strategy, the business should, among...

Meanwhile Haagen Dazs

Farggi's managers believed that, by the end of 1994, Haagen Dazs had about 25 parlours operating, of which two were actually owned by the company one in the Rambla de Catalu a in Barcelona and the other in the centre of Madrid. Regarding distribution, it was estimated that they had about 600 freezer cabinets installed in Barcelona and a further 400 in Madrid, mainly in relatively small outlets, but with presence in some supermarket and hypermarket chains. The physical distribution in the...

Measuring Strategic Performance

Tracking strategy, or evaluating progress toward established objectives, is an important task in strategy implementation. There are three basic considerations in putting together a performance measurement system (a) selecting performance measures, (b) setting performance standards, and (c) designing reports. A strategic performance measurement system requires reporting not by profit center or cost center but by SBU. It may require allocation or restatement of financial results based on the new...

Mma Perspectives

MMA had been extremely profitable, although industry performance as a whole had deteriorated markedly during the last few years. The homeowners' insurance business (MMA's forte) had been much more stable than commercial lines. Further, MMA had been operating in an unusually favorable competitive environment for these reasons 1. Direct writers were not as strong in Connecticut (the main geographic area in which MMA operated) as they were on a countrywide basis. (See Exhibit 7.)

Much Cheap Cargo

Using that authority, FedEx flew an MD-11, laden with up to 170,000 pounds of freight, into Beijing and Shanghai four times a week. For now, FedEx filled much of the plane with cheap air cargo, for which it charged as little as 2 a pound and made, at best, a slim profit. As more manufacturing operations in China adopted just-in-time manufacturing systems, however, FedEx believed that the bulk freight would shift to highly profitable small-package services, for which the company charged up to 30...

Multinational Markets

The Japanese market for car navigation systems was the world's largest in 1995 with sales of 580,000 units and 840 million.2 Car navigation systems were installed in 10 percent of new Japanese cars in 1995. The penetration rate for all cars registered in Japan was 2 percent. With competition among 30 companies, the average retail price per unit decreased dramatically from 4,000 in 1990 to 2,500 in 1995. As competitors vied to introduce new models with the latest technological features, market...

Na

* Numbers sold are per firm, not per outlet. A firm that sells a particular camera format may not do so in all its outlets. * Numbers sold are per firm, not per outlet. A firm that sells a particular camera format may not do so in all its outlets. Source Photo Marketing Association. The film market graphs Exhibit 10 use data from the Photo Marketing Association and Morgan Stanley to describe the U.S. film market. As you can see, total exposures are flat, as are our film shipments. However, 35mm...

New Segments

Good News is a defensive product for Gillette. Though distributing it widely, the company is spending negligible money advertising it. Gillette knows, though, that it must do more than counter the Bic threat. It must keep the whole disposable market contained. That means, most immediately, luring from disposables two chief categories of users teenagers and women. According to Marino, shaving is just not a high-interest category to a lot of kids in high school. They don't have to have a Gillette...

New Strategy

Against this background, Playboy Enterprises is undertaking what Hefner calls a repositioning. The strategy, she says, is to go after a more upscale audience by being more in tune with current tastes and values. I think we should be on the cutting edge of how people who have changed their behavior to reflect a more liberal lifestyle are going to live. The October 1985 issue of Playboy, marked Collector's Edition, began what the company calls the magazine's next generation. This included greater...

Newproduct Strategy

New-product development is an essential activity for companies seeking growth. By adopting the new-product strategy as their posture, companies are better able to sustain competitive pressures on their existing products and make headway. The implementation of this strategy has become easier because of technological innovations and the willingness of customers to accept new ways of doing things. Despite their importance in strategy determination, however, implementation of new-product programs...

Notes

Greenley, Perceptions of Marketing Strategy and Strategic Marketing in UK Companies, Journal of Strategic Marketing (September 1993) 189-210. 2 James Brown, Saul S. Sands, and G. Clark Thompson, The Status of Long Range Planning,'' Conference Board Record (September 1966) 11. 3 Business Planning in the Eighties The New Competitiveness of American Corporations (New York Coopers & Lybrand, 1984). 4 Malcolm McDonald, The Marketing Audit Translating Marketing Theory Into Practice...

Nottoway Plantation 1994

Nottoway was located 18 miles (about 30 minutes) south of Baton Rouge and 69 miles (approximately 1.5 hours) from New Orleans. Facilities were open daily all year, with the exception of Christmas Day. Plantation tours provided Nottoway's prime source of profit. Other sources were its elegant dining, overnight accommodations, and gift purchases. (See Exhibits 2, 3, and 4 for financial data.) Exhibit 5 shows a diagram of the facilities. Nottoway was open for public viewing with guided tours...

Operations

Like much of the hospitality trade, Nottoway's business was seasonal, reflecting the locale's tropical climate. (Although the home was not air-conditioned, it did benefit from breezes which came in through large windows.) Room occupancy ranged from less than 45 percent in January up to 90 percent in the peak months. (See Exhibit 7.) Tours, accommodations, and the gift shop experienced peak months in March through May January was the slowest month. Exhibit 7 shows projected visitors by month. In...

Organization

When Cindy Hidalgo was hired as general manager in 1985, she was 27 years old with an accounting degree, a start on an MBA, and three years of management experience. She did not become a CPA because she felt that it would be a waste of time to study for the exam while she could be concentrating on climbing the corporate ladder. Her goal for Nottoway was continual improvement. Ramsay essentially left the running of Nottoway to Hidalgo, visiting four to six times a year for reports. Hidalgo...

Organizational Arrangements And Problems

Corporations organize scanning activity in three different ways (a) line managers undertake environmental scanning in addition to their other work (b) scanning is made a part of the strategic planner's job (c) scanning responsibility is instituted in a new office of environmental scanning. Structuring Responsibility for Scanning Most companies use a combination of the first two types of arrangements. The strategic planner may scan the corporate-wide environment while line managers concentrate...

Other Tools

Traditionally, tool usage was in favor of cost-reduction techniques. In recent years, the tool preferences are shifting toward models for retaining customers, outsmarting competitors, motivating employees, and accelerating innovation. Here is a listing of select new tools that are commonly used by strategists. Benchmarking. This process measures a company against the standards and practices of other companies. The use of benchmarking is growing quickly among small companies, as it becomes...

Perspectives of Product Strategies

Definition Placing a brand in that part of the market where it will have a favorable reception compared with competing brands. Objectives (a) To position the product in the market so that it stands apart from competing brands. (b) To position the product so that it tells customers what you stand for, what you are, and how you would like customers to evaluate you. In the case of positioning multiple brands (a) To seek growth by offering varied products in differing segments of the market. (b) To...

Plan Of The Book

Today's business and marketing managers are faced with a continuous stream of decisions, each with its own degree of risk, uncertainty, and payoff. These decisions may be categorized into two broad classes operating and strategic. With reference to marketing, operating decisions are the domain of marketing management. Strategic decisions constitute the field of strategic marketing. Operating decisions are those dealing with current operations of the business. The typical objective of these...

Priceflexibility Strategy

A price-flexibility strategy usually consists of two alternatives a one-price policy and a flexible-pricing policy. Influenced by a variety of changes in the environment, such as saturation of markets, slow growth, global competition, and the consumer movement, more and more companies have been adhering in recent years to flexibility in pricing of different forms. Pricing flexibility may consist of setting different prices in different markets based on geographic location, varying prices...

Pricing Strategy To Build Market Share

Recent work in the area of marketing strategy has delineated the importance of market share as a key variable in strategy formulation. Although market share has been discussed earlier with reference to other matters, this section examines the impact of market share on pricing strategy. Time and again it has been noted that higher market share and experience lead to lower costs. Thus, a new product should be priced to improve experience and market share. The combination of enhanced market share...

Printed On Recycled Newsprint

From launching their own green line (Miracle Mart introduced three Green Circle products, Oshawa Foods introduced about 10 Green-care products) to highlighting environmentally sensitive products in their stores (Safeway) to improving its internal practices through recycling and other activities (Provigo). During the year, Loblaws continued to develop and promote the GREEN product line. In the first year of GREEN, Loblaws sold approximately 60 million worth of GREEN products and broke even on...

Problems At Home

Back at home, where Coke derived one-fifth of its profits, it faced an entirely different order of problems. Consumers here already drank more soft drinks than in any other country outside of Mexico 45 percent of it from the Coca-Cola Co. Combining that with a reinvigorated Pepsi fighting for every scrap of market share, Coke was left with less room to maneuver (see Exhibit 3). Almost This case was prepared as a basis for class discussion rather than to illustrate either effective or...

Procter Gamble Bringing the Company into the 21st Century

In January 1999, Durk Jager took over as the new CEO of P& G. His predecessor, John Pepper, stepped down after only three years on the job. His early departure was attributed to the fact that P& G at that time needed a CEO who could change its culture, protect its market share, and find successful new products. Mr. Pepper, known around P& G as a nice guy and a consensus builder, simply was not what the company needed. Mr. Jager was considered to be the type of person who could revive...

Procter Gamble Scope

As Gwen Hearst looked at the year-end report, she was pleased to see that Scope held a 32 percent share of the mouthwash market for 1990. She had been concerned about the inroads that Plax, a prebrushing rinse, had made in the market. Since its introduction in 1988, Plax had gained a 10 percent share of the product category and posed a threat to Scope. As brand manager, Hearst planned, developed, and directed the total marketing effort for Scope, Procter & Gamble's (P& G) brand in the...

Product Development

In product tests on Scope, PDD had demonstrated that Scope reduced plaque better than brushing alone because of antibacterial ingredients contained in Scope. However, as yet P& G did not have a clinical database to convince the HPB to allow Scope to extend these claims into the prevention of inflamed gums (as Listerine does). PDD had recently developed a new prebrushing rinse product that performed as well as Plax but did not work any better than Plax against plaque reduction. In fact, in...

Productelimination Strategy

Marketers have believed for a long time that sick products should be eliminated. It is only in recent years that this belief has become a matter of strategy. A business unit's various products represent a portfolio, with each product playing a unique role in making the business viable. If a product's role diminishes or if it does not fit into the portfolio, it ceases to be important. When a product reaches the stage where continued support is no longer justified because performance is falling...

Productivity And Effectiveness

Investment was particularly high at the beginning of the 1990s, about Ffr15 billion a year in 1990 and 1991. It represented about 9.5 percent of the sales turnover, one of the highest ratios of the industry, and was financed internally rather than through borrowing. Investments were aimed at renewing the product range. They were also aimed at continuing the modernization of the industrial assets of the group, in order to improve productivity, flexibility, efficiency and the quality of the...

Productmarket Information

Snuggle was a premium quality liquid fabric softener that softened the whole wash, controlled static cling, and gave clothes a fresh smell at a price that was really less expensive than other premium fabric softeners. It would be available in the normal variety of sizes 17 oz., 33 oz., 64 oz., 96 oz., and 128 oz. The liquid fabric softener category was large and growing. In 1989, sales were 398 million, an in crease of 22 percent since 1985. The liquid softener market could be expanded because...

Productrepositioning Strategy

Often, a product may require repositioning. This can happen if (a) a competitive entry is positioned next to the brand, creating an adverse effect on its share of the market (b) consumer preferences change (c) new customer preference clusters with promising opportunities are discovered or (d) a mistake is made in the original positioning. Citations from the marketing literature serve to illustrate how repositioning becomes desirable under different circumstances. When A & W went national in...

Pvc

Suspended Wall PVC Plastic-Coated Carpeting Ceilings Paneling Tubes Roof Insulation Expand round off operations Develop own plastics-processing facilities. Acquire plastics processors. Give support in key projects. Cooperative with state-owned construction organization. Develop local facilities for tufting and paneling. Acquire cooperate with suppliers using unique product and production technology. Develop own distribution channel. Extend range to provide complete interior equipment program...

Razor Technology

Ever since an ambitious inventor named King C. Gillette introduced the first safety razor in 1903, men have been accustomed to continual, extensively advertised advances from Gillette in the state of the art of shaving. The company spends more than 20 million a year on shaving research and development. With the aid of the latest scientific instruments, a staff of 200 explores the fringes of metallurgical technology and biochemical research. They subject the processes of beard growth and shaving...

Review Of Pricing Factors

Basically, a pricer needs to review four factors to arrive at a price pricing objectives, cost, competition, and demand. This section briefly reviews these factors, which underlie every pricing strategy alternative. The real price of everything is the toil and trouble of acquiring it. The real price of everything is the toil and trouble of acquiring it. Broadly speaking, pricing objectives can be either profit oriented or volume oriented. The profit-oriented objective may be defined either in...

Role Of Systems In Implementing Strategy

The term systems refers to management systems, which include any of the formally organized procedures that pervade a business. Three types of systems may be distinguished execution systems, monitoring systems, and control systems. 1. Execution systems focus directly on the basic processes for conducting the firm's business. They include systems that enable products to be designed, supplies to be ordered, production to be scheduled, goods to be shipped, cash to be applied, and employees to be...

S

Source Best Executive Data Service. there was little coverage difference in small business insurance, and the required service level was similar to personal lines (i.e., relatively low). Further, the small business was becoming highly important to the U.S. economy over 600,000 new businesses were started each year. According to Naisbitt, author of Megatrends, the United States would be in an entrepreneurial explosion to the end of this decade. The implication...

S B

The PSA Group included two general car manufacturing companies Automobiles Peugeot and Automobiles Citro n. The two were linked by strong technological, industrial, and financial synergies, although each marque kept its identity, and its own marketing and sales. In 1994, the PSA group was the third largest car manufacturer in Europe, with 12.8 percent market share. The year 1994 showed improved performance of PSA, after difficulties in 1993 profitability rose from a Ffr1 billion loss to profits...

S0

*For any particular industry, there will be some factors that, while important in general, will have little or no effect on the relative competitive position of firms within that industry. ** 1 denotes very weak competitive position 5 denotes a very strong competitive position. toward leaving the market through harvesting or divesting. Harvesting amounts to making very low investments in the business so that in the short run the business will secure positive cash flow and in a few years die...

Satisfaction Guarantee Convenience Exclusive Service

Onceyou havetriedthe shoes on in you home, if for any reason you are not entirely satisfied, SpainSko S.L. will exchange them for another pair or will refund yourmoney. 1 year guarantee. SpainSko S.L. undertakes to replace your shoes in the event of there being any manufacturing defect in the first year. (This guarantee excludes normal wear and tear or damage as a result of misuse.) Convenient. Fill out the attached order form, using block capitals of...

Scanning the Environment

An organization is a creature of its environment. Its very survival and all of its perspectives, resources, problems, and opportunities are generated and conditioned by the environment. Thus, it is important for an organization to monitor the relevant changes taking place in its environment and formulate strategies to adapt to these changes. In other words, for an organization to survive and prosper, the strategist must master the challenges of the profoundly changing political, economic,...

Scenario Building

Plans for the future were traditionally developed on a single set of assumptions. Restricting one's assumptions may have been acceptable during times of relative stability, but as we enter the new century experience has shown that it may not be desirable to commit an organization to the most probable future alone. It is equally important to make allowances for unexpected or less probable future trends that may seriously jeopardize strategy. One way to focus on different future outcomes within...

Snuggle Advertising

To date, Snuggle's advertising strategy had been to convince consumers that new Snuggle was a quality liquid fabric softener that softened the whole wash, controlled static cling, gave clothes a fresh smell, and was really less expensive than premium liquid fabric softeners. Snuggle was positioned among the other premium liquid softeners Downy and Final Touch. However, Snuggle was priced less than these brands. Consumers would be able to get all the quality softener benefits they desired, but...

Snuggle Pricing

Snuggle fabric softener would be priced between 11 to 14 percent less than the premium brands in the liquid fabric softener category Final Touch and Downy. Snuggle was not a price brand. It was positioned in the premium segment of the liquid fabric softener market. Price brands did not provide the same quality softener benefits that Snuggle delivered. The trade price of Snuggle should be close to the same margin as Downy so that Snuggle would offer a meaningful price differential to consumers...

Snuggle Promotion

Snuggle's introductory program was the strongest in the history of the fabric softener category. On a national basis, Lever spent 60 million on trade and consumer promotions to support the brand during its introductory year. The promotional program was designed to 1. Secure three size distributions. 2. Maximize trade feature and display support. 3. Generate consumer trial and repeat purchase. 4. Accelerate product movement. 5. Obtain a significant on-shelf price advantage vs. Downy. The...

Some Financial Information

Being a family-owned company, Lacrem, S.A. did not publish its balance sheets. Traditionally, it had always made a profit which had enabled it to finance its growth from self-generated funds. Exceptionally, in 1993, the company had recorded a negative cash flow. However, cash flow had been moderately positive again in 1994. The economic forecasts for 1995 and 1996 were for a strong increase in cash flow, which would enable the company to progressively decrease its level of indebtedness, open...

Sony Corporation Car Navigation Systems

Sony, lost time while trying to agree on standard software upgrades. Sony's unit sales increased, but at a slower growth rate than the market Sony's market share fell from 60 percent in 1993 to 23 percent in 1994 and 17 percent in 1995, and was estimated to drop to 15 percent in 1996. Exhibit 2 summarized the major competitors' market shares. Exhibit 3 compares sales performance of NaviKen and non-NaviKen companies. In Europe and the United States, Sony was also the first to launch car...

Spain Sko

Some points of interest about SpainSko * SpainSko is the exclusive importer in Spain of DANSKO shoes. * DANSKO shoes are not meant to be corrective, just very comfortable and natural. They help the circulation and are ergonomic. * DANSKO shoes have the following features ** They respect the natural shape of the foot. ** They exert no pressure of any kind on the toes, either from the front, from the sides or from the top. ** They are held in place exclusively by the cup-shaped heel and the...