BALLARPUR INDUSTRIES LTD.: ALIGNING MARKETING STRATEGY
                     IN A TURBULENT ENVIRONMENT

                  ...
BIG DADDY’S PIZZA

                                                Charles H. Patti
                                      ...
COLUMBUS FOAM PRODUCTS

                                         Bruce C. Bailey, Otterbein College


                    ...
Henkel-Loctite: Hot-Melt Adhesives


              Martha C. Fransson, Rensselaer Polytechnic Institute
       David W. Wo...
THE CASE ALSO PROVIDES A SET OF ASSUMPTIONS ABOUT THE EXPENSES
ASSOCIATED WITH VARIOUS METHODS OF FINDING NEW APPLICATIONS...
HISTORYTREK™: GETTING TO MARKET

Kirk C. Heriot, Western Kentucky University
Deborah R. Ettington, Eastern Michigan Univer...
MARKETING VIDEO ON DEMAND (VOD) SERVICES: ROGERS COMMUNICATIONS
                                       Ajax Persaud & Alli...
RENESSEN: WHAT´S ABOUT MAV ?

                                   Javier J. Silva & Maria Belén López Alemán
              ...
TEN THOUSAND VILLAGES OF CINCINNATI: THE FIRST YEAR AND BEYOND

                              Mary Conway Dato-on, Norther...
THE LITTLE CARIBBEAN RESTAURANT

                                   Leonard Jackson, Bethune Cookman College


           ...
TRUST COMPANY OF THE NORTH

                                 Kenneth Paul, Sharon Hodge, & Earl Honeycutt
                ...
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Ballarpur Industries Ltd

  1. 1. BALLARPUR INDUSTRIES LTD.: ALIGNING MARKETING STRATEGY IN A TURBULENT ENVIRONMENT Joffi Thomas, A.P Arora, & Rajen K. Gupta Management Development Institute, India Case Objectives and Use The case exposes students to the issues involved and the marketing efforts required in transforming a production oriented commodity (paper) manufacturer in an emerging market (India) to a market oriented / market driving firm. Students are required to understand the implications of changing domestic and global scenario in paper industry, evaluate the marketing efforts undertaken by BILT during the period 1999-2003, recommend the appropriate strategic option and formulate marketing strategy for BILT from the perspective of V.P Marketing. The case could be used for postgraduate courses in marketing management as well as for executive development programs for sessions dealing with marketing strategy and customer relationship management. Case Synopsis Ballarpur Industries Ltd. (BILT) is the leader in the fragmented Indian writing and printing paper industry, with Rs.21.5 billion sales turnover and approximately 20 % market share. BILT Did not have any focused marketing strategy nor a marketing team and was interested only in pushing the stocks out of its plants prior to 1999. In 1999, the new Vice Chairman and Managing Director (VC & MD) appointed a Marketing Head whose task was to turn the production oriented firm into a market oriented firm as a proactive measure to develop competitive advantage before the competition heats up. During the period from 1999-2003, he set up a marketing team of seventy people, designed and implemented necessary systems and procedures for improved service delivery, undertook efforts in mapping the consumer and end user markets, invested in branding BILT and its products and strengthened the distribution network to connect better with its consumers and end users. In 2003, the V.C & MD was considering three long term strategic options for BILT (i) develop BILT as a national writing and printing paper distribution company (ii) forward integrate into printing (iii) continue the traditional growth model. The V.P Marketing now finds it necessary to evaluate the impact of the marketing initiatives made during 1999-2003, recommend the appropriate strategic option and formulate marketing strategy for that can best leverage BILT’s marketing strengths and help develop sustainable competitive advantage. The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Joffi Thomas, A.P.Arora and Rajen K. Gupta. Contact person: Martha McEnally, University of North Carolina at Greensboro, Box 26170, Greensboro, NC 27402-6170, 336-256-0268, Martha_McEnally@uncg.edu
  2. 2. BIG DADDY’S PIZZA Charles H. Patti Queensland University of Technology Case Objectives and Use Big Daddy’s Pizza (BDP) traces the challenges of the most recent entry into the highly competitive pizza business in Australia, including the decision to challenge the industry leaders by developing a distinctive point of differentiation, thus attempting to avoid the pizza price war. The case chronicles how BDP and its advertising agency developed three different ideas for a new television advertising campaign and subjected the commercials to three alternative testing services to try to resolve a difference of opinion about the potential effectiveness of the commercials. Will ‘product quality’ generate a meaningful point of differentiation in this industry? How can the results of the three testing services be helpful to BDP’s mission of creating long-term brand value? How do companies minimize price competition? The case was written for business school classes in marketing management and strategy, advertising management, and integrated marketing communication. It can be used at both the advanced undergraduate and MBA levels. Case Synopsis When BDP decided to enter the Australian pizza market, its management had no idea just how price competitive the market would become. After nearly ten years of competing based on product quality and uniqueness, BDI now finds itself in the middle of a pizza price war. The two large, international chains and one Australia chain primarily compete based on distribution penetration (number of outlets) and price discounting through coupons. BDP is outspent in advertising, has fewer distribution outlets, and has rarely used coupons. Yet, it has continued to grow over the years because of high product quality. However, the price war has intensified and BDP is feeling the pressure. To continue to compete with the market leaders, BDP is considering a new advertising campaign (“Get Your Deal Here”) —focused on couponing. As the Company tries to decide if this departure is a sound, long-term strategy, it engages its advertising agency to develop and test three alternative advertising messages. After looking at the test results, the future direction is still not so clear. As Elizabeth Gilbert, BDP’s marketing manager observed, “I am concerned about joining the price war because our entire reputation has been built on product quality. Yet, if we do not use coupons, how long can we survive?” The author developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Charles H. Patti. Contact person: Charles H. Patti, Faculty of Business, Queensland University of Technology, 2 George Street, Brisbane, Qld 4001, Australia., +61-7-3864-2972, c.patti@qut.edu.au
  3. 3. COLUMBUS FOAM PRODUCTS Bruce C. Bailey, Otterbein College Case Objectives and Use The case shows the difficulties facing a small company competing in highly competitive product markets that are dominated by major players. Columbus Foam Products serves an eight-state area in the Midwest and, having just returned to profitability after several years of operating “in the red,” must now determine appropriate growth strategies for the long-term health of the company. The case was written for business school undergraduate courses in marketing or business strategy, and could also be used in a first-year graduate class in marketing management. It might best be used fairly early in the course as it provides a good deal of financial information that students should become proficient in analyzing. Case Synopsis Columbus Foam Products, Inc. (CFP) is a manufacturer of shaped polyurethane foam products covered by a protective vinyl fabric. Products include a limited line of foam padding and seals for loading docks, athletic padding for basketball courts, wrestling/martial arts mats, landing mats for high-jump/pole vaulting pits, and foam forms in various shapes for physical therapy applications. The largest part of the business is conducted in dock seals, a price- sensitive, commodity-type market dominated by large, full-line suppliers. Hank Oberle, the newcomer to the management team, brought in a “best practices” approach to the business that helped the company (a) eliminate an unprofitable fatigue mat line, (b) improve production processes, (c) manage expenses, and (d) return the company to profitability. The recent turnaround, however, was not due to the best practices approach alone. CFP had benefited greatly from a recent change in the Ohio School Athletic Association’s safety requirements for athletic apparatus such as high jump and pole vault pits. The landing areas for these events were comprised primarily of polyurethane foam, and CFP and other foam providers reaped the benefit of these new regulations during the initial upgrading period. This unexpected windfall, while short-term in nature, had provided the additional impetus needed to turn CFP profitable. Oberle believed that the long-term health of CFP depended on changing it from a sales- and price-oriented company to a marketing-oriented one. Given his limited resources, it would not be an easy transition. As he organized his thoughts and prepared for the upcoming strategy meeting, he wondered, “Where do we go from here?” The author developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the author and NACRA. © 2004 by Bruce C. Bailey. Contact person: Bruce C. Bailey, Department of Business, Accounting, & Economics, Otterbein College, One Otterbein College, Westerville, OH 43081, 614-823-1460, BCBailey@otterbein.edu
  4. 4. Henkel-Loctite: Hot-Melt Adhesives Martha C. Fransson, Rensselaer Polytechnic Institute David W. Wolf, Henkel-Loctite Corporation, MS in Management 2003 Case Objectives and Use THE CASE PROVIDES INFORMATION ABOUT HOT-MELT PUR, A NEW CHEMICAL ADHESIVE THAT WAS MORE COMPLEX TO USE IN INDUSTRIAL SETTINGS THAN GELLED CYANOACRYLATE, AN EXISTING AND WIDELY ADOPTED ADHESIVE. NEVER THE LESS, HOT-MELT PUR PROVIDED HIGH RELATIVE ADVANTAGES IN BOND STRENGTH, ELIMINATION OF HARMFUL VAPORS, AND ELIMINATION OF WASTED MATERIALS AND REWORK. THE CASE PROVIDES DETAILED INFORMATION ABOUT THE TECHNOLOGY ADOPTION PROCESS IN ONE INDUSTRIAL SETTING AND ASKS STUDENTS TO DEVELOP A PLAN FOR HOW HENKEL-LOCTITE CORPORATION (H-L) MIGHT LEVERAGE THIS EXPERIENCE TO ESTABLISH A STRONG MARKETPLACE POSITION. THE TEACHING OBJECTIVES FOR THIS CASE REQUIRE THE STUDENT TO:: ANALYZE THE ADOPTION DECISION PROCESS USED BY A SMALL MANUFACTURER; ANALYZE THE EXISTING DIFFUSION PROCESS USED FOR INNOVATIONS IN INDUSTRIAL ADHESIVES; ANALYZE ALTERNATIVE APPROACHES TO IDENTIFYING THE MARKET FOR HOT- MELT PUR; AND DEVELOP A RECOMMENDATION TO ADOPT EITHER A BOWLING ALLEY OR TORNADO STRATEGY. THE CASE WAS WRITTEN FOR GRADUATE LEVEL MARKETING STRATEGY COURSES THAT INCLUDE AS TOPICS EITHER EVERETT ROGERS’ DIFFUSION OF INNOVATIONS OR GEOFFREY MOORE’S TORNADO AND BOWLING ALLEY THEORIES. Case Synopsis BILL GORDON, A TECHNICAL SALES REPRESENTATIVE FOR HENKEL-LOCTITE CORPORATION (H-L), A DIVERSIFIED GLOBAL CHEMICALS FIRM, HAS MADE A TECHNOLOGY DISPLACEMENT SALE OF THE COMPANY’S NEW HOT-MELT PUR ADHESIVE TO LAKEWELL MANUFACTURING, A MANUFACTURER OF FISHING TACKLE IN LOWER ALABAMA. THE CASE PROVIDES INFORMATION ABOUT THE PROCESS THAT LAKEWELL MANUFACTURING USED TO EVALUATE AND ADOPT HOT-MELT PUR FOR TWO PRODUCTS. THE CASE CLOSES WITH THE HEAD OF MARKETING AT HENKEL’S LOCTITE SUBSIDIARY ASKING: IS THIS A SITUATION WHERE WE NEED TO SELL INTO SPECIFIC APPLICATIONS AND BUILD DOMINANCE IN EACH? OR IS THIS A SITUATION WHERE THERE WILL BE A GENERAL MASS-MOVE TO PUR TECHNOLOGY AND WE NEED TO MOVE FAST – IN ALL MARKETS SIMULTANEOUSLY? WILL WE INFLUENCE WHAT HAPPENS BY THE MARKETING STRATEGY WE CHOOSE? THE CASE PROVIDES INFORMATION ABOUT THE FISHING EQUIPMENT INDUSTRY AND ABOUT THE PRIMARY MARKETS FOR INDUSTRIAL ADHESIVES.
  5. 5. THE CASE ALSO PROVIDES A SET OF ASSUMPTIONS ABOUT THE EXPENSES ASSOCIATED WITH VARIOUS METHODS OF FINDING NEW APPLICATIONS FOR HOT-MELT PUR AMONG NEW AND EXISTING CUSTOMERS AND DISPLACING THE TECHNOLOGIES (ADHESIVE AND MECHANICAL) ALREADY IN USE. STUDENTS ARE ASKED TO RECOMMEND EITHER THE BOWLING ALLEY STRATEGY (DOMINANCE IN SPECIFIC APPLICATIONS) OR THE TORNADO STRATEGY (RAPID DIFFUSION OF THE NEW PRODUCT ACROSS ALL INDUSTRIES AND APPLICATIONS) AND TO CHOOSE AMONG ALTERNATIVE METHODS OF CARRYING OUT THE STRATEGY (FIELD SALES, DIRECT MAIL, TRADE SHOWS). The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Martha C. Fransson and David W. Wolf. Contact person: Martha C. Fransson, Rensselaer Polytechnic Institute, Lally School of Management & Technology, 275 Windsor Street, Hartford, CT 06120-2991, (860)-548-7831, fransson@rh.edu
  6. 6. HISTORYTREK™: GETTING TO MARKET Kirk C. Heriot, Western Kentucky University Deborah R. Ettington, Eastern Michigan University Case Objectives and Use The case is designed for use in undergraduate courses in marketing, entrepreneurship (new venture creation), or strategic management. The instructor’s manual focuses primarily on its use in an introductory marketing course where it provides an opportunity for students to apply theoretical concepts to a product that is easy for students to understand. The marketing concepts that can be applied to the situation in the case include: market segmentation, value proposition, target market, market positioning, concept testing, buying process, and marketing mix. A further objective is to help students see how these concepts apply differently in a start-up venture than they might in an established company. The motivations and goals of the entrepreneurs need to be taken into account. Finally, the students should develop an appreciation for the need to sequence marketing strategy decisions and activities, even while seeing the interaction among them. Case Synopsis James Connor, a business professor, has started The History Game Company, Inc. to commercialize his idea for a history-based educational computer game targeted to social studies teachers in Georgia. The case includes data on the market, and describes the processes of developing a prototype and obtaining market feedback. James faces the critical questions of whether the concept is commercially viable, and if so, how to best bring it to market. The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Kirk Heriot and Deborah Ettington. Contact person: Kirk C. Heriot, 1 Big Red Way, Department of Management, Western Kentucky University, Bowling Green, KY 42101, 270-745-4343, kirk.heriot@wku.edu
  7. 7. MARKETING VIDEO ON DEMAND (VOD) SERVICES: ROGERS COMMUNICATIONS Ajax Persaud & Allison Johansen School of Management, University of Ottawa, Canada Case Objectives and Use The case presents the strategy employed by Canada’s leading cable companies to roll out it latest innovation in television viewing, video on demand. Traditionally, Rogers Communications launches its new services simultaneously in all its viewing area and uses its media assets (TV, Radio, video stores, etc.) for promotion. Although cost-effective, this approach often generates unrealistic expectations among consumers, which leads to frustrations when the service is not available in their viewing area. In launching the new video on demand services, the company is considering abandoning its traditional approach in favor of a new approach – a staged rollout of the service starting in Toronto, then moving to other viewing area within the province of Ontario, and then across Canada. This meant that the company could not leverage it media assets to the same degree as it did previously and it had to develop a different marketing campaign. Containing it promotional messages to the targeted roll out area was a key challenge the VoD marketing team must address. Another key challenge was how effective would this new strategy be and would it lead to frustrations and anger among its core customers across the country. This case is written for business school undergraduate and MBA courses in marketing strategy, new product management, and advertising and promotion. Case Synopsis Video on demand is seen as the next killer app in television viewing because it gives consumers the ultimate choice to get what they want, when they want, without ever leaving their homes. In addition to renting the movie of their choice from the comfort of their living rooms, consumers can preview the movie before ordering, and play, pause, rewind, or fast forward during the movie. Consumers control the time they want to view the movie. Convenience, control and choice are key benefits of this service. Despite these benefits, VoD service providers must deal with certain challenges such as technology infrastructure, securing the digital rights from studios to offer the programming, competition, costs, consumer acceptance, and the huge downside risk if the service does not achieve widespread acceptance. Further, Rogers Communications, Canada’s leading cable company, has not always enjoyed a good reputation for excellent service roll out and customer care. The team’s concerns also included inexperience with this new strategy, inability to leverage its national media reach, the desire to manage customers expectations, and not to alienate its core viewing clients. Should Rogers VoD team embrace this new approach or rely on their established strategy with some fine tuning? The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Ajax Persaud and Allison Johansen. Contact person: Ajax Persaud, School of Management, University of Ottawa, 136 Jean- Jacques Lussier Street, Ottawa, Ontario, K1T 2C5, Canada. (613) 562-5800, ajax@management.uottawa.ca
  8. 8. RENESSEN: WHAT´S ABOUT MAV ? Javier J. Silva & Maria Belén López Alemán IAE Business School – Austral University Case Objectives and Use The case deals with the development of Renessen, a joint venture between Cargill and Monsanto in Latin America. It illustrates issues on branding and pricing strategies within a commodity market, in view of the intensification of value enhanced grains development and the difficulties experienced by different biotech companies. The case was written for being used at a specialized Industrial Management Program, MBA, Advanced Marketing, General Management, Pricing and Branding Courses. Students unfamiliar with agricultural sectors may be surprised with this rather new player in the industry. A visit to the web site at http://www.renessen.com will be especially productive to become more familiar to the business. Case Synopsis In May 1998 Monsanto and Cargill made Renessen, a joint venture that combined the global abilities of Cargill, regarding grain marketing, processing and management with the expertise of Monsanto in GM seeds development. The company promoted products for grain processing and animal feed markets, by improving the genetic make-up of the seeds. From the beginning the company invested $70 million in the development of GM seeds. On Monday, August 20th, 2001, Jeff Schlactenhaufen (Marketing Global Director) checked his e-mail when he arrived at his office in Chicago. He had received a high importance mail from Axel Hinsch (CEO of Latin America) requesting his opinion about the launch of their first product. Renessen’s first project was the high value corn – MAV, which consisted in producing a special corn, developed through traditional improving techniques (natural crossbreeding). By the year 2000, the seed had been registered in the National Institute of Seed in Argentina and product trials were carried out in the following months. In the third quarter of 2001, MAV was already to be launched. Axel Hinsch had to review its commercial and brand plans in order to address the company sales objectives in the following years. There would be a meeting on Friday, August 24 to agree on the following steps to take, but MAV implementation in Latin America urged them to take immediate action. Axel and Jeff would respond: What to do with MAV? The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Javier J. Silva and Maria Belén López Alemán. Contact person: Javier J. Silva, IAE Business School, Austral University- Mariano Acosta s/n Ruta Nac. 8 (B1629 WWA) Pilar – Buenos Aires – Argentina, mlopez@iae.edu.ar
  9. 9. TEN THOUSAND VILLAGES OF CINCINNATI: THE FIRST YEAR AND BEYOND Mary Conway Dato-on, Northern Kentucky University Chris Manolis & Deanna Behrens, Xavier University Case Objectives and Use A non-profit Fair Trade retail store, Ten Thousand Villages, located in Cincinnati, Ohio is discussed. The time frame involves the store’s opening and first two years of operations (2002-2004). Two main players, Karen the Chair of the Board of Directors and Cheryl, the store manager, struggle to develop a customer-focused plan to ensure sales increases for their unique operation. Marketing issues ranging from store location selection to inventory selection and promotion are presented. In addition to covering an alternative method of doing business through cause-based marketing, the case provides a platform for c a relatively new breed of strategies collectively known as customer relationship management (CRM) to be implemented. This case was written for undergraduate courses in retail management, non-profit marketing, and consumer behavior. Undergraduate international business or marketing courses may also use this case as a platform to discuss fair trade and global social responsibility. Case Synopsis Karen, a full-time mom for most of her adult life with little or no business experience, leads her Cincinnati-based Mennonite fellowship on the business adventure of a life time. In 2001, after having orchestrated twelve years of successful Christmas-season, weekend sales events, Karen and members from the Cincinnati church began raising funds to open a permanent, year-round retail outlet where Cincinnatians could purchase unique, international, handmade products in-line with the philosophy of fair trade. With the assistance of her husband who is an attorney, Karen developed the by-laws and filed for the store’s non-profit status in January 2002. With much community support and crucial assistance from Cheryl, the store manager, Ten Thousand Villages Cincinnati opened shop in November 2002. After a successful first-year of operations, Karen is faced with decisions of how to continue the sales growth and stay in line with the store’s mission and fair trade philosophy. Karen has reviewed primary and secondary data informing her of the target market she should focus on (Cultural Creatives). She knows that the entire raison d’etre for Ten Thousand Villages Cincinnati is to build relationships between artisans in developing countries and affluent consumers in North America. As Karen reviewed the challenges she asked herself (and posed the question to Cheryl), “How do we effectively focus on existing customers to maximize their satisfaction and increase purchases their purchases while sharing the artisans’ stories?” The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Mary Conway Dato-on, Chris Manolis, and Deanna Behrens. Contact person: Mary Conway Dato-on, Management & Marketing Department, Northern Kentucky University, Highland Heights, KY 41099, conwayme@nku.edu
  10. 10. THE LITTLE CARIBBEAN RESTAURANT Leonard Jackson, Bethune Cookman College Case Objectives and Use Leroy Morrison and Eglon Walker are men who have clear visions. This vision has allowed them to develop an excellent product service mix. However, they are not sure how to communicate effectively with their potential client base. This case will take the learner through the presentation mix, namely: physical plant, location, atmospherics, employees, customers, and prices to determine the strengths, weaknesses, opportunities and threats associated with Irie Caribbean Restaurant. Recommendations focus on expanding target markets and investigating ways to strengthen the communications mix. This case can be used in an introductory marketing course. It may also appeal to students who wish to venture into the area of entrepreneurship, and as such can be used in new venture start-up courses. Industry knowledge is not critical to its use. Case Synopsis Irie Caribbean is in its second year of operation in an area of Toronto, Canada known as “Little Italy.” In 2002, the restaurant should have been entering the growth stage of the product life cycle but was experiencing disappointing sales. In fact, revenue has declined from the first year of operation. Although the restaurant has an excellent reputation in the local community, it had not developed the level of spontaneous awareness that the owners had hoped for. By all accounts, the restaurant has an excellent product-service offering. The restaurant’s ambiance and décor are extremely important to the product concept, as it is reminiscent of traditional island eatery. The product and service are quite authentic and somewhat unexpected. The menu offers an interesting variety of traditional Caribbean foods served with attention to quality, and presentation. Menu prices are similar to the competition and the restaurant has a manageable food cost. Leroy Morrison and Eglon Walker, owners of Irie Caribbean, are highly qualified and experienced chefs as well as food and beverage managers. Both men had hoped that at this stage, their restaurant would have created enough awareness in the marketplace that would allow them to start selling franchises. Irie Caribbean has a strong reputation with regular patrons but is not reaching its potential in terms of expanding its customer base. The question being faced is “What should the restaurant do to expand its customer base?” The author developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Leonard Jackson. Contact person: Leonard Jackson, Bethune Cookman College, jacksonl@cookman.edu
  11. 11. TRUST COMPANY OF THE NORTH Kenneth Paul, Sharon Hodge, & Earl Honeycutt Elon University Case Objectives and Use This case demonstrates how service firms reposition themselves, through specialization, to attract larger and more profitable clients. The Trust Company of the North (TCTN) had been in operation for ten years and the cost of remaining in business had been “taking all the business we can find.” The decision point of the case is a marketing strategy reformulation: how to successfully focus future marketing efforts on more high-value and profitable clients and wealth management services. The most pressing marketing challenges are how to reposition the company to best appeal to new high net target markets while dealing with the sensitive issue of shedding current customers that not longer fit this profile. This case was written for undergraduate and MBA students in marketing and, perhaps, financial planning. Case Synopsis Sam Sessions had recently been hired by TCTN, as Sr. VP for Business Development, and told to develop plans for two major challenges: 1. Reposition the company to best appeal to a new high net worth target market. 2. Develop a sensitive way to shed current customers not fitting the new profile. TCTN had begun operations as a trust company but now wanted to evolve to a wealth management firm. Sessions knew TCTN would have to be repositioned if they were to be viewed differently in the marketplace. One of the first challenges for TCTN would be to determine the minimum asset level for customers. Then, Sessions would have to analyze current customers and select those generating a profit and thus worthy of keeping. Clients not producing a profit would have to be delicately “fired” by raising fees or suggesting that competitors could better service their needs. Sessions is uncertain whether TCTN needs to adopt a new firm name? Likewise, is financial analysis all that is necessary when selecting “profitable” customers? What roles do customer relationship management (CRM), advertising, employee selection, and reputation play in this service repositioning strategy? Finally, Sessions believes he should commission market research, but is uncertain what information he should gather about and from potential clients. Sessions remains uncertain how he should proceed to successfully focus future marketing efforts on more high-value and profitable clients and wealth management services. The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 7-9, 2004, Sedona, AZ. All rights are reserved to the authors and NACRA. © 2004 by Kenneth Paul, Sharon Hodge, and Earl Honeycutt. Contact person: Kenneth Paul, Love School of Business, Elon University, Elon, NC 27244, 336-278-5931, kpaul@elon.edu

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