Case 1 – How to beat successful market-oriented organization

Customers are unlikely to be aware of or interested in the underlying processes that

yield the superior value they receive. Consider how Marriott Hotels is able to
consistently receive the best ratings from business travellers and meeting planners for
high-quality service. They are certainly as capable as Hyatt, Hilton, and others at
selecting good sites, opening new hotels smoothly, and marketing them well. What
consistently sets them apart and reveals a distinctive service capability (actually a set
of linked capabilities each performed outstandingly well) is a "fanatical eye for
detail." This begins with a hiring process that systematically recruits, screens, and
selects from as many as 40 applicants for each position and continues through every
hotel operation; for example, maids follow a 66-point guide to making up bedrooms.
The effective management of these linked processes, within an organizational culture
that values thoroughness and customer responsiveness, creates a distinctive capability
that gives Marriott employees clear guidance on how to take the initiative to provide
excellent customer service. Another perception emerge whether these capabilities can
be readily matched by rivals and whether management techniques probably exist to
help.

Case 2 – Harley Davidson Success in Building Customer Relationship

Harley-Davidson has forged a powerful relationship marketing strategy on the

foundation of its Harley Owners Group (HOG). Each Harley-Davidson dealers have
local HOG chapters. Harley-Davidson pays the first year's membership dues for
customers who buy one of its motorcycles. The underlying purpose of HOG is to help
buyers enjoy and use their motorcycles Thus the company and its dealer network
sponsor and facilitate weekend riding rallies, training sessions, and other events" that
bring like-minded people together. Harley-Davidson mails a bimonthly magazine to
HOG members that lists regional, national, and international riding events. Most
dealers distribute a local chapter newsletter. With more than 250,000 members,
Michael Keefe, director of the HOG program, claim it as the process as customer
bonding. If people use the motorcycle, they will stay involved. If there is nowhere to
ride, no place to go, the motorcycle stays in the garage, the battery goes dead, and a
year from now, they just sell it. Although social bonding normally cannot overcome a
non-competitive core product, it can drive customer loyalty when competitive
differences are not strong. A social relationship also may prompt customers to be
more tolerant of a service failure or to give a company an opportunity to respond to
competitor entreaties.
Case 3 - Levi Strauss Expands Its Levi Jeans Brands Up and Down

Levi Strauss experienced major sales and profit declines after the mid-1990s.
Revenues fell from $7 billion in 1996 to $4 billion in fiscal 2003 and were running at
$4.4 billion in 2010. For years the Levi brand targeted the middle price and quality
market, avoiding discounters like Wal-Mart, Target, and Kohl's. Management also
failed to recognize the significance of the boom in high-fashion denim. In a surprising
turnaround initiative Levi has expanded its jeans market coverage to target both price
and fashion-conscious buyers.

The new Levi Signature brand was designed for Wal-Mart, Tar. get, and other
discounters. The more expensive Premium Red Tab was targeted to up-scale
customers of retailers like Nordstrom and Neiman Marcus.In 2010 Levi's launched its
first global brand outside the United States-Denizen-targeting Asian consumers with a
better fitting lean. Denizen follows the model of pricing in the middle of the market-
more expensive than cheap casual wear, but cheaper than luxury brands,
notwithstanding the warning that Chinese consumers love luxury and bargains but not
the area in between. The Denizen brands reaches the United States in 2011 as a low-
cost jean sold in Target.

Attempting to appeal to a wide range of market targets with a variety of poorly

differentiated Levi jeans brands is risky. A potential consequence is damage to the
Levi brand, and the initiative may not have a major impact on Levi's sales and profits.
Levi Strauss's very slow response to changes in its core jeans market is illustrative of
the challenges of competing in highly competitive mature markets. Recognizing the
seriousness of the problem, management hired a turnaround consulting firm in late
2003.

Case 4……..
Peter Drucker, management philosopher, said “the two key activities within any business are
marketing and innovation”. Marketing allows the identification and understanding of suitable
hungry markets. While innovation allows the fulfillment of the market`s need in some unique
way that customers value greatly. Without marketing there is no customer pull. Without
innovation, the costumer value proposition is copied or disrupted by competitors. Whilst
innovation is essential for long-term survival, the associated risks and high failure rates are
obstacles to many new products launched. A survey of 188 global CEOs conducted by The
Economist (1) showed that most problems with innovation are nothing to do with risk.
Instead, the survey cited the following reasons for innovation failure:
1. Time and cost over-runs (60 % of respondents)
2. Competing development priorities (53 %)
3. Poor upfront market research (52%)
4. Failure to gather enough or relevant end-user input (44%)
5. Poor inter-departmental communications (39 %)
6. Over engineering (24 %)
7. Lack of design-for-manufacture (20%)
Due to innovation and marketing, the wrong input from the market is the key to many
innovation failures. The failures often associated with poor costumer research or gather
insufficient or irrelevant data from the end-user means the project has no clear objectives in
terms of what it is trying to achieve or what market needs they are trying to satisfy.
Reference :

(1) Harnessing innovation growth: R & D in a global growth economy, Economist Intelligence
Unit, 2004.

Case 5 – Multichannel challenge for retailers

Consumer behaviour is driving multichannel growth and if retailers want to stay in

touch with their customers they must adapt now. Let’s face it, multichannel is here,
and the majority of customers use several channels before they buy (around 86%
apparently). So, whatever you do as a retailer, if you’re not in the multichannel game,
then you’re not planning to be in retail for the long run, as your customers already are.

One of the things that it is important to realise is that the multichannel concept is not a
clever invention driven by retailers, but rather a reflection of the changes that are
happening all around us, driven by consumer behaviour. Access to the internet is
becoming a commodity; home broadband connectivity comes free with your mobile
package, your TV subscription or landline agreement, and mobile internet access is
part of most mobile phone packages these days. One of the effects of these increased
‘ease of access’ is a significant surge in popularity of everything internet enabled,
even people’s social lives.

Consumer preferred retailer provides what they want, how they want it and when they
want it and engages with them through the channels that they want to engage through;
online, in store, mobile, catalogue, call centre. During the purchase journey the
consumer will select their preferred way of satisfying their needs. The single channel
purchase journey is almost extinct. And this shift in consumer behaviour has
fundamentally changed one of the retailer’s fundamental activities – conversion. No
longer is this something that we can focus on a single channel, it needs to be
addressed across a journey that spans multiple channels. And this is where things get
interesting.

Case 6 – Mistake for Marketer to Avoid

Much of advertising best practice is focused on advising people what to do; rather less
effort goes into explaining what not to do, but there are valuable lessons to be learned
from failure, according to two industry figures. Advertising likes to celebrate its
successes but there are a multitude of ways in which marketers and agencies can get
things wrong and which they are understandably reluctant to discuss. Among the ten
things they highlighted were the dangers of price promotions, which are frequently
regarded as a good way to bring people into the brand and encourage consumption.
The problem is that most lose money, advice that comes too late for brands assessing
their Black Friday and Cyber Monday plays.
“The long-term effects are actually dangerous for brands,” said Binet, “because they
teach people to buy on price, rather than some other, more emotional, benefit.” (For
more, read WARC’s report: When advertising goes wrong: lessons from past
failures.)

He offered up the example of an unnamed brand which had pursued the idea of a
digital price promotion, which involved getting people to download an app and then,
at a certain point, when demand for the product peaked, giving them a discount online
through the app. But very few people downloaded the app. And in any case, price
promotions don’t generate much, if any, incremental income.

“Only someone who buys the brand is going to download the app and it only triggers
the price promotion when they would be likely to buy the product anyway,” Binet
pointed out. “So almost no incremental volume. And then what it does, of course, is it
sells the stuff you would have sold anyway, at a low price, which means it’s
unprofitable.”
Golding also highlighted an unexpected consequence of price promotions for rival
brands: under-pressure department stores like Debenhams and House of Fraser in the
UK have resorted to discounting, which has in turn affected John Lewis, which, with
its promise of being “never knowingly undersold”, has to match other stores’ prices.
“So the brand gets no benefit whatsoever from any kind of price promotion effect,”
said Golding. “It gets no additional sale because it’s not marketing and price
promotion, it just loses profit.”

Case 7 :

Komar just graduates from business school, He is going to start business, where online business
Retailing (the product can be anything) is as one chosen alternative. However, for the bright
future business has to have a direction concerning about what business are in? What we are
going to be?who are our customer? How do we serve them? These questions always in his mind.
He knows also that currently business always in volatile where demand always uncertainty up
and down while. Competitors growing up rapidly. According to Porter Five Forces concept, the
competitors could come from existing industries, potential new entrants, bargaining power of
suppliers and buyers and threats from substitutes product. Many ideas come mind in solving his
problem such as developing the strategic Business planning, Marketing Strategy, value chain
analysis concept, competitive advantages, superior business performance whether through
competitive, comparative advantage strategy or/and cooperative strategy. He think first what
kind of Retailing business that he try to start.