Research, Advertising and Sales Promotion at Richland Dodge, Inc. demonstrates the marketing research process and advertising and sales promotion strategy in a less-than-perfect environment. This case illustrates the intricacies of the marketing research process and provides the resulting data collected and analyzed to be interpreted and used by Richland Dodge’s management in planning advertising and sales promotion strategy. The case provides students with a basis for integrating research results with the marketing environment and from this integration to explore "non-advertising" options including personal referral, customer loyalty programs and other forms of sales promotion as well as traditional advertising media.

The teaching note was written for undergraduate classes in Marketing Management, Marketing Research, Advertising, Consumer Behavior, and Retailing.

Research, Advertising and Sales Promotion at Richland Dodge, Inc. focuses on the decision making situation facing Mr. Ben Brooks, CFO, in terms of advertising and sales promotion. For advertising, Richland Dodge, a relatively small dealership, is outspent by its local competitors almost $2 to $1 per new vehicle retailed (PNVR). Without increasing its current advertising budget of $6,000 per month, Richland must allocate its spending in the most effective way possible to compete in the Jonesboro, Arkansas market. Mr. Brooks has shared Richland’s situation with Dr. Logan Nonis’ Marketing Research class at Arkansas State University and the class has conducted a study of the information seeking behavior of new vehicle buyers in Craighead County. Given the data collected and analyzed by the research students, Mr. Brooks must evaluate the information and use it to develop an effective advertising and sales promotion strategy for Richland Dodge.

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Contact Person: Gail Hudson, Arkansas State University, College of Business, Department of Management, Marketing and Business Systems,
Mail: P.O. Box 59, State University, AR 72467;
Voice: (870)-972-3430; FAX (870)-972-3868; e-mail: ghud@cherokee.astate.edu

This case illustrates two important decisions in the new product development process. The A case deals with a subject that is rarely found in Business to Business Marketing cases – package size determination – yet can be critical to the successful market introduction of the new product. The B case addresses pricing issues for new, substitute products that will be introduced into highly competitive markets. Students are encouraged to consider value to the end customer and competitive reactions as well as comparative costs between the current and new product in developing and justifying a price recommendation. Calculations comparing two different products, one liquid and the other dry, are required to develop appropriate recommendations for both package size and price. The case can also be used to illustrate environmental and worker safety issues in the agricultural chemical industry.

The case was written for undergraduate courses in Marketing Management, Business to Business Marketing, or Marketing Policy and Strategy. It can be used in either the new product development or pricing portions for the course. It may also be useful in Production/Operations Management courses.

Walter Sedgwick, a new marketing assistant, has been asked by the Product Manager at Daynor Chemical Company to help make some key decisions regarding the upcoming market introduction of a new, significantly modified agricultural chemical product (MDA). This new product is the result of four years of development effort and will be introduced into a well-established competitive market. The primary advantages of this new product are in the areas of environmental protection and worker safety with no real performance differences.

Walter has to make a recommendation to the Product Manager regarding the appropriate package size for the new dry MDA. This decision must consider the characteristics of the two end markets for the product (tobacco and potatoes) and how they affect actual field usage within technological constraints and costs of the total package. He also has to make a recommendation regarding the appropriate price for the new product, which will have to consider detailed cost data for the new versus the current product. He will also have to consider value to the farmers and competitive reactions to various price levels for the new product. While this new product is somewhat proprietary to Daynor, current liquid products from Daynor and other competitors will continue to be available and are well accepted by the farmers.

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Contact Person: Michael T. Smith, Christian Brothers University, Memphis, TN 38104
Mail: 650 E. Parkway South, Memphis TN 38104
Voice: (901) 321-4205; FAX (901) 321-3566; e-mail: mtsmith@cbu.edu

This case can be used to illustrate –

• Entry strategies of companies investing in high potential but regulated markets,
• Strategies followed by multinational companies to capitalize on growth opportunities in a competitive market,
• Challenges faced by managers in trying to adapt internationally successful products and brands in an unfamiliar environment, and
• Evolution of strategies in a rapidly changing market within the constraints imposed by a company’s corporate objectives, image and domestic market conditions.

L’Oreal, the world’s largest cosmetics company, set up its Indian subsidiary in 1994. Its corporate objectives, premium image, selection of target segments, retailing requirements and investment decisions have determined the strategies followed by its managers in India. The company has chosen only a few brands and products out of its portfolio of over 500 brands and 2000 products for the Indian market. It is present in the hair care market through its Ultra Doux range of hair oils, shampoos and conditioners, in the premium segment of the skin and face care market through the Synergie range of creams, lotions, and gels and the hair colourant market through Excellence and Majirel.

An evaluation of the performance shows mixed results. Ultra Doux shampoos could not make much headway in the competitive mass market but Ultra Doux conditioners are gaining acceptance in the urban markets. Sales and customer feedback of Excellence hair colourant have exceeded company’s expectations. In the skin care market, Synergie has been a pioneer by launching some innovative products like the wrinkle control cream and the daily replenishing cream, which are gaining acceptance among its target consumers.

The company has been expanding its operations by investing in product development, production capacity, distribution network, brand building and recruitment. Four years later, in June 1998, the top management of the company is evaluating the performance, business conditions, and constraints to develop strategies to achieve a break even sales target of Rs. 1 billion by year 2000.

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Contact Person: G. Shainesh, Management Development Institute, Gurgaon, India
Mail: P.O. Box 60, MDI, Gurgaon, Haryana, India 12201
Voice: (91) 124-340 148; FAX (91) 124-341 189; E-mail: shainesh@mdi.ac.in

The purpose of this case is to expose students to the use of an integrated marketing communication program in a social marketing context; and to provide students with the opportunity to analyzing an integrated marketing communications campaign that has attempted to change deep seated community attitudes and behavior. The decision focus of the case revolves around selecting from fundamentally different advertising approaches and the challenge of finding commercial sponsorship in an era of declining government revenue support.

The case is suitable for courses in marketing, marketing communications, buyer behavior and social marketing at both undergraduate and graduate (MBA) levels.

SunSmart is a skin cancer control program launched by the Anti-Cancer Council of Victoria in 1988. The program was launched in the wake of promotional efforts that had begun in 1980 and was designed to halt the increasing incidence of skin cancer occurring in Victoria, the second most populous state in Australia. The SunSmart program was highly successful in bringing about major community attitudinal and behavioral change during the 1990s. However, in July 1998, the Campaign Manager for SunSmart program was highly successful in bringing about major community attitudinal and behavioral change during the 1990s. However, in July 1998, the Campaign Manager for SunSmart was facing two major problems. In a meeting he was about to attend, with senior management of the Anti-Cancer Council of Victoria, he had to make a recommendation concerning the production of a new television commercial. He also was required to recommend steps to be taken in order to address a crisis that was looming concerning the funding for the program.

A television commercial used by SunSmart had generated high levels of community awareness for the need to be sunsmart, but at the same time the hard hitting, fear appeal approach of the ad had generated a considerable amount of negative publicity. Craig Sinclair, the SunSmart Campaign Manager, had to recommend what approach would be appropriate for the next three years of the program. He also had to address the issue of a likely reduction in the amount of funding that would be available in the future. The possibility was to seek commercial sponsorships. However, the problem was to decide whether partnerships with commercial organizations would assist or detract in communicating the SunSmart message to key target audience groups.

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Contact Person: Peter Reed, Monash Mt. Eliza Business School, Australia
Mail: 27 Sir John Monash Drive, Caulfield Junction, Victoria, 3161, Australia
Voice: +613 9215.1807; FAX: +613 9215.1815;
e-mail: peter.reed@buseco.monash.edu.au

This case presents a small professional business that has successfully added a number of complementary services to its customer offerings. It began to offer the additional services to maintain a high level of growth in the face of increasing competition. Now that the market for veterinary services in its geographical location has matured, the inevitable question is … "How do we grow the business now?". The answer to this question is a function of three important considerations: (1) the current market’s ability to generate significant increases in Castlerock’s client base, (2) management’s willingness to consider increasing the distribution of its services through an investment in new outlets, i.e., geographic expansion, and (3) the ability of Castlerock’s MIS infrastructure to support the marketing activities required to increase the value of each Castlerock client.

Specifically, this case seeks to encourage students to:

• Appreciate the unique marketing problems of small business
• Develop appropriate marketing strategy via analysis of marketing data while considering the competitive context
• Understand the role of MIS in developing marketing strategy and tactics.

Castlerock Corporation faced a dilemma that many small businesses experience when they reach a plateau in growth. The veterinary clinic business has clearly "tapped-out" its market. Castlerock management has commissioned a marketing research study to verify its position in its market. The study verified that the Castlerock Veterinary Clinic leads its geographic market, but further suggested that the market had become mature, rendering it unable to yield dramatic future gains in its client base. The researchers had suggested that expanding the distribution of clinic services via geographic expansion would be the most effective means for generating large gains in the client base in the future. This strategy, however, would require large investments in new physical plant, while the gains in the client base would be uncertain at best and, given the limited nature of competition in this market, would require a long time to be realized.

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Contact Person: Harold Daniel, University of Maine, Orono, Maine 04469
Mail: 5723 Corbett Business Bldg., Orono, Maine 04669
Voice: (207) 581-1933; FAX: (207) 581-1956; e-mail: hdaniel@maine.edu

This case can be used in an introductory marketing. The case focuses on the issue of strategic positioning but also touches upon managerial issues of how to develop estimates for market potential and market segmentation.

The case can also be used in an undergraduate entrepreneurship course to identify challenges to new company start-ups in the business to business markets or service industries. The case is very straight forward with limited quantitative analysis and therefore is very suitable for qualitative discussions on what an entrepreneur should consider in his/her quest for breaking into an established market. The case is best used in an undergraduate program and should be positioned in the beginning of a semester.

EDC is a professional civil and environmental engineering, permitting and management consulting firm that services developers, architects, engineers, and attorneys. EDC provides a wide range of professional consulting services that include civil and marine engineering design, marina planning and development services, coastal and wetland environmental permitting, wetland restoration and mitigation design, FEMA Flood Plain Management consulting, environmental resource mapping, and computer modeling studies of hydraulic system.

EDC was created in February 1998. As a startup, EDC has not yet developed a marketing plan. In the beginning, most of the contracts and jobs were acquired from previous contacts, based on the successful reputation of the firm’s principles. In the beginning, the company focused on immediate production and the generation of much needed cash flow. Presently, EDC has reached sufficient production to sustain the company and is now transitioning into a growth phase. Even though the company has been able to gain a high market share within single family market segment, they would like to penetrate other more profitable market segments to increase profits. One of the market segments that EDC is looking to penetrate is the multi-family residential coastal permitting segment, which includes condominium and apartment type oceanfront buildings. Another market segment that the firm wishes to develop is the multi-family residential wetland permitting market.

While the owners of the company have been able to generate business from previous clients and their referrals, a solution to this question of which market to tackle next is critical to EDC’s long-term growth.

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Contact Person: Walfried M. Lassar, Florida International University, Miami, FL 33199
Mail: College of Business Admininstration , 11200 SW 8^th St, Miami, FL 33199
Voice: (305) 348-2571 (O); FAX (305) 348 3792; e-mail: lassarw@fiu.edu

"Into the Sun" illustrates many of the issues which face companies when dealing with rapidly changing markets and shortening product life cycles. In such circumstances marketing decision-makers are often faced with extraordinary time pressures, limited information, and the necessity to commit large resources to overcome entry barriers. This case also demonstrates diffusion of innovation theory, reference groups and opinion leadership, and explores the impacts of short life cycles on marketing issues.

The case was written for undergraduate courses in marketing strategy, marketing management, promotion, distribution, arts management, product management, media management, and new product development.

In the spring of 1998 Sean Lennon, son of John Lennon of Beetles fame introduced his first album. Sean and the album had received extensive media attention and the two music companies which had produced and supported the album had committed to a higher level of promotion and marketing than they normally would for the first album of an unknown artist. As was the usual practice in the introduction of a new album, one of the songs was released to radio stations in order to generate interest among listeners. Reviews of the album were not particularly positive and sales were not up to the expectations of the record companies. The question now was what to do next. From the beginning there had been two camps among the record company executives. One group had wanted to promote Sean and the album extensively from the start, while the other group had wanted Sean to preceded the release of the album by playing the music on tour in order to build a fan base. Now, after three months, the issues were being replayed. Should the record companies release another "single" from the album and promote it heavily, focus on the few markets in which the album had done well, or should they send Sean on a tour to stimulate demand at the grass roots?

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Contact Person: David W. Rosenthal, Miami University, Oxford, Ohio 45056
Mail: Marketing Department, Miami University, Oxford, Ohio 45056
Voice: (513) 529-1203; FAX: (513) 529-1290; e-mail: rosenthdw@muohio.edu

The case study provides background on farmers’ markets, the Growers’ Association, the St. Paul Farmers’ Market, and research results from a customer intercept survey. A total of 457 customers were interviewed at the market in 1997. The results include data on customer demographics, shopper geographics, shopping patterns, market attractions, new products, market amenities and conveniences, adjacent stores and amenities desired, and market potential. The case provides an opportunity to look at field data for decision making purposes. It also raises the questions of adequate information and the responsibilities for the city, the association, and developers.

The case is primarily written for undergraduate and MBA courses in marketing management. It deals with interpreting the data, deciding if there is sufficient market potential for an expanded market, and what additional information would be necessary to determine the feasibility for an expanded market.

Farmers’ markets are increasing in popularity nationally. Consumers are seeking higher quality foods, locally grown fresh produce, more organically grown foods, and a fun, friendly, relaxing environment. The downtown St. Paul, Minnesota Farmers’ Market typifies this trend.

The St. Paul Growers’ Association of 160 grower-sellers operates the downtown St. Paul Farmers’ Market. The market operates Saturdays and Sunday mornings for 26 weekends during the warm season. It uses a one square block area partially covered by canopies and used as a parking lot during the non-market times. The area surrounding the market is completely built-up by warehouses converted to condominiums, apartments, and manufacturing. The City of St. Paul is required by law to provide for a farmers’ market, but has been reluctant to help the market expand at the existing site or relocate.

The Growers’ Association would like to eventually expand the market to a seven-day-a-week, all-year-round market. They also are concerned that strong economic development downtown will eventually force them to relocate as has occurred in the past. Also, they are under pressure to meet Growers’ Association members’ needs for expansion, and growing consumer needs for expanded product offerings, amenities, and conveniences.

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Contact Person: David P. Brennan, University of St. Thomas, St. Paul, MN.
Mail: 13836 Pierce Street, N.E., Ham Lake, MN 55304 USA
Voice: 651-962-5072; Fax: 651-962-5093; E-mail: dpbrennan@Stthomas.edu