Harvard Business Review case study

1. When Marketing is a
Strategy
Upstream and
Downstream activities

2. The problem
Situation
Companies struggling
to balance
between sales and
better marketing
strategies.
Questions
Upstream activities?
Downstream
activities?
How should
companies base
their marketing
strategy?
What if their decision
results in loss?
Questions
Choosing competitors?
Competitive
advantage?
Customer choices?
Innovation-pace and
prospects?

6. Proof and action
Hypothesis
Customers’ opinions are
important but not all the
time. Example: Apple and
Zara
Brand image plays a
major role.
Customers’ convenience
plays a major role in
pricing
Alternatives
Instead of selling
better products, SELL
PRODUCTS BETTER!!!
Ex: Hyundai’s selling
strategy during the
2008-09.
Cialis vs. Viagra
Alternatives
Choosing your
competitors: If you
place your product in a
different place in the
store, the sales go up!!!!!

7. Solution
CHANGE YOUR STRATEGY:TILT
1. Innovation is not always the
option. SELL PRODUCTS
BETTER!!
2. Downstream TILT: Reducing
prices and risks for
customers
3. Upstream competitive
advantage: Internal to the
firm
4. Downstream competitive
advantage: External to the
firm

8. Implementation

9. Challenge1
Hyundai sales
dropped drastically
during the 2008-09
Challenge2
Laying offs; Delayed
purchase of goods;
Sales crashed!!!
Plan1
Reduce risk instead
of price!
Action1
Launch risk reduction
program in Jan 2009.
Result1
Hyundai Sales
doubled while
industry sales
declined 37%

10. The answer lies in pacing up the
Downstream game!
It has it’s own set of rules.
Master them to your advantage!!!!

11. Sindhuja Nanduri
2013B1A4874H
BITS Pilani, Hyderabad
Campus