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Pop Shoppe

By Matthew Thomson and Kendra Hart:

The Pop Shoppe was once a leading player in the Canadian soft drinks market, but changing market conditions and corporate mismanagement drove the company into bankruptcy in the early 1980s. In 2003, an entrepreneur purchased the rights to the brand, and was considering reintroducing it in the market on the idea that many Canadians would be as fond of the Pop Shoppe as he was. The challenge was significant: the new potential buyer had little experience in the beverage industry and limited funds for a brand revival, and consumer habits had changed in the many years since the brand died. Questions about market segments and brand positioning loomed large. Older consumers might embrace the reintroduction of the old brand, but did they comprise a sustainable market segment? Would older consumers be able to turn their children onto the brand? How true should the brand stay to its original concept? Was a new positioning strategy required to meet growth goals? Could enough consumer and retailer interest in Pop Shoppe be raised to make the brand succeed? This case lets students grapple with the difficult task of re-launching a once-iconic brand after a significant absence from the market. A B-case supplement to Pop Shoppe (A) deals with the entrepreneur’s decision in 2010 on whether to enter the U.S. carbonated soft drinks market. The B-case highlights important distinctions between two seemingly similar markets in an attempt to demonstrate that success is not always easy to replicate.

Unilever

Unilever in Brazil 1997-2007: Marketing Strategies for Low-Income Consumers (2004) INSEAD Case (Pacheco Guimaraes and Chandon)

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.

Parfums Cacharel de L’Oréal

Parfums Cacharel de L’Oréal 1997-2007: Decoding and Revitalizing a Classic Brand (2014) INSEAD Case (Chandon, Nicholas, and Wertenbroch)

Parfums Cacharel, a division of L’Oréal, used to have a dominating position on the European market with both the number one and number two best-selling fragrances: Anaïs Anaïs and Loulou. At the time of the case however, sales were declining at a rate of 15 % per year and Cacharel was a fragance brand in need of a major revitalization. The task assigned to Dimitri Katsachnias, the new general manager of Cacharel, is to turn around the business. But before doing that, he needs to understand the brand. 1. Brand identity decoding ? What is Cacharel’s brand identity? What are its conceptual and tangible components? Can it be summarized in less than five words? ? Does the Cacharel umbrella brand itself have an identity beyond that of its sub-brands? Which sub-brands are mostly responsible for creating Cacharel’s identity? 2. Brand revitalization ? What is the root source of Cacharel’s maturity crisis and how can understanding the brand’s identity help? Should Kataschnias bring the Cacharel brand closer to where the market is now? Should he focus on meeting the desires of today’s consumers or in remaining faithful to the brand’s original identity?

L’Oreal

L’Oréal in China: Marketing Strategies for Turning Around Chinese Luxury Cosmetic Brand Yue Sai (2014) INSEAD Case (Yang and Chandon)

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 watch commercials and video interviews.

J.C. Penney’s Fair and Square Pricing Strategy

J.C. Penney’s Fair and Square Pricing Strategy (2012) Harvard Business School Case (Elie Ofek and Jill Avery)

It was August 2012 and the release of second quarter earnings was looming for CEO Ron Johnson. Johnson had intimated to Wall Street that the retailer’s second quarter results were likely to miss expectations again, following dismal first quarter results. These results were particularly disheartening given the company’s radical repositioning of its business model and its brand in February 2012. The heart of the repositioning strategy was a switch from J.C. Penney’s traditional high-low pricing strategy, in which the retailer ran frequent sales to offer customers discounted pricing off of its higher day-to-day list prices, to a new pricing strategy the company dubbed “Fair and Square” pricing. “Fair and Square” pricing attempted to simplify J.C. Penney’s pricing structure and make it more straightforward for customers, offering them great prices every day, with less frequent price promotions. But by mid-summer 2012, customers and shareholders appeared to be voting with their feet, leaving the retailer in droves as it struggled to implement its innovative redesign. Was his new pricing strategy misguided or was it just a matter of time before customers fully embraced it? Johnson was under enormous pressure to turn things around quickly as the all-important back-to-school and holiday shopping seasons were imminent.

EILEEN FISHER: Repositioning the Brand

EILEEN FISHER: Repositioning the Brand (2012) Harvard Business School Case (Keinan, Avery, Wilson, and Norton)

Well-established fashion brand Eileen Fisher has traditionally appealed to older women. However, to drive growth, Eileen Fisher’s management team wants to target a younger demographic and has revamped its Fall product line to offer more fashionable styles to appeal to younger women. But, repositioning the brand has proven to be harder than expected. This case explores the challenges of appealing to new target markets, without alienating existing consumers. The case follows Eileen Fisher’s initial forays into social media as they chase a younger demographic and demonstrates the opportunities and pitfalls that await big brands when they enter the world of Web 2.0.

The Ford Fiesta

The Ford Fiesta (2012) Harvard Business School Case (Deighton and Kornfeld)

Executives at Ford wondered if social media could be the marketing solution for the launch of the youth-oriented 2010 Fiesta. But with social media came a ceding of control. Some at the company believed that if Ford was going to move beyond its conservative brand image for the launch of the new subcompact chances had to be taken. Others erred on the side of caution. Chantel Lenard, Ford’s Group Marketing Manager for Global Small Car and Midsize Vehicles and Connie Fontaine, Manager of Brand Content and Alliances championed a new approach for the new vehicle and set into motion a comprehensive 6-month social media initiative targeting a younger, ethnically diverse, and urban-based market, called “The Fiesta Movement”. In doing so, a large portion of the marketing campaign was handed over to 20 and 30-somethings across America, and Ford had to acclimate to a new way of doing marketing. To what extent should the company guide the activities and messages of their army of bloggers? The case is set two months into the Movement, as the team evaluates the metrics from YouTube, Twitter, Facebook, and their website, and wonder if they’re doing everything they need to do in order to make the Fiesta a success with a new target market.

Porsche: The Cayenne Launch

Porsche: The Cayenne Launch (2010) Harvard Business School Case (John Deighton, Jill Avery and Jeffrey Fear)

Can an online discussion forum supply insight into the evolution of brand meaning? In 2003 Porsche launched a sport utility vehicle, dividing Porsche purists from newcomers to the brand. Vocal members of online and offline Porsche communities ridiculed the Cayenne SUV and disapproved of the new breed of driver. Some opposed offering Porsche club membership to them, and some even refused to extend the fraternal Porsche ‘wave’ or headlight flicking to them on the road. Porsche’s values of speed, luxury, and a certain masculine zeal resonated strongly with its devotees, while drivers of the Cayenne (which came to be known as ‘the SUV for soccer moms’) tended to be safety-conscious, family-oriented, and conservative. Evolving debates on the forum allow a class to debate whether the brand had strayed too far from its core values and was at risk.

Dove: Evolution of a Brand

Dove: Evolution of a Brand (2008) Harvard Business School Case (Deighton)

Examines the evolution of Dove from functional brand to a brand with a point of view after Unilever designated it as a masterbrand, and expanded its portfolio to cover entries into a number of sectors beyond the original bath soap category. The development causes the brand team to take a fresh look at the cliches of the beauty industry. The result is the controversial Real Beauty campaign. As the campaign unfolds, Unilever learns to use the Internet, and particularly social network media like YouTube, to manage controversy.

The Síminn Brand Inside

The Síminn Brand Inside (2007) London Business School Case (Fournier and Tavassoli )

The challenge for telecommunications company Siminn’s management team was to evolve the brand from its monopolistic center of gravity to something more consumer-centric: from a company known only as the biggest telecom company in Iceland to the customer’s first choice; from products to solutions, value, and results; from transactions to relationships; from technology-orientation to market-orientation; from a state-owned and run business concern to an attractive investment option; and from a defensive strategic responder to a dynamic and innovative player in the market.

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