STANFORD GRADUATE SCHOOL OF BUSINESS

MKTG 249 Marketing Management - Fall 2009

Professor Michaela Draganska

Office: L342
Phone: (650) 724-1390
Email: draganska_michaela@gsb.stanford.edu

Faculty Assistant: Barbara McCarthy

Office: L218
Phone: (650) 725-3981
Email: mccarthy_barbara@gsb.stanford.edu

Introduction
The goal of this course is to introduce you to the essentials of marketing management: how
firms and customers behave and the strategies and methods that marketers can use to operate
successfully in today's dynamic environment. Specifically, the course goals are:
To introduce the key elements of marketing management
To provide a sound framework for identifying, analyzing, and solving marketing
problems
To enhance your leadership, analytical, and communications skills
Course Materials
Cases in course reader and on CourseWork
Strategic Marketing Management, 2009, by Alexander Chernev, Brightstar Media,
Inc.
Course organization
The course involves a mixture of case discussions and lectures, with an emphasis on
developing an analytical approach that will enable students to (1) understand the
environment in which a company operates and identify opportunities and threats, (2)
identify and solve marketing problems, and (3) develop actionable marketing plans.
Teamwork is an essential component of case analysis. Groups will be assigned during
the first week of class.
Students should be prepared to discuss the assigned cases in detail. Expect to invest
significant amount of time in this course. The actual preparation time depends on you
and your group. Most cases take about 4-6 hours to prepare, 3-4 hours of which are
typically allocated for individual preparation and 1-3 hours for group discussions (2-5
hours for cases requiring written analysis).
Two group case write-ups are required: Calyx Flowers and Nestle Pizza. The case
assignment format is designed to enhance your analytical skills and your ability to
communicate ideas in a clear, succinct, and persuasive manner. Case write-ups are due
by 1:00 PM the day before the class in which the case is discussed. Late cases will not
be accepted. Please anticipate scheduling conflicts and submit early if necessary.
There will be also two individual assignments (quantitative assignment and Gilette
Fusion case write-up).
When indicated, use the case writeup template posted on CourseWork to write your
analysis (1,000 words max, excluding the exhibits). All cases are to be submitted by
 email to gsbmktg249-autumn@gsb.stanford.edu as attachments labeled as follows:
[group name]_[Case]. For example, MarketingMavericks_Calyx.
To ensure equal participation in group projects, team members have the opportunity to
evaluate each other's performance using the team evaluation form posted on
CourseWork.

Evaluation of Student Work

Assignment Type % of grade Due by
Quantitative assignment individual 10% Oct. 1 @ 3PM
Calyx case write-up group 20% Oct. 7 @ 1PM
Nestle Contadina case write-up group 20% Oct. 26 @ 1PM
Gillette Fusion case write-up individual 30% Dec. 2 @ 1PM

Please note that the due dates are sometimes different from the session dates! Late
assignments will not be accepted.
Case write-ups are graded on a scale from 0 to 100. Scores are interpreted as follows:
100 Perfect
90 - 99 Outstanding
80 - 89 Excellent
70 - 79 Very good
60 - 69 Good
50 - 59 Fair
40 - 49 Mediocre
30 - 39 Poor
20 - 29 Very poor
10 - 19 Terrible
00 - 9 Abysmal

Class contribution accounts for 20% of the course grade. It reflects the degree to which a
student contributes to the discussion and is not simply a function of the amount of "air
time" he/she takes up. Class attendance is a necessary but not sufficient condition for
participation.
Keep in mind that your grade is not always a perfect indicator of your potential
marketing skills; it simply reflects your performance on the set of specific tasks outlined
above.
Classroom Etiquette
To provide an optimal learning experience, students should refrain from activities that are
likely to distract others.
Students are expected to remain in the classroom for the duration of the class. If a student
must depart early due to unavoidable circumstances, the student should inform the
instructor before class. Leaving and re-entering the class is not permitted except in the
event of an emergency.

Honor Code
Written cases are to be prepared as specified either individually or by group members
only. The cases are not to be discussed with out-of-group members.
No outside case-related resources should be used for case analysis; you must rely only on
the information provided in the case.
Schedule Overview

Session Date Topic Due

Module 1: The Big Picture

1 22-Sep Introduction

2 24-Sep Lecture: The marketing framework

3 29-Sep Case: Aqualisa Quartz

Lecture: A systematic approach to marketing quantitative assignment
4 1-Oct
planning (individual)
Module 2: Understanding Markets

5 6-Oct Lecture: Segmentation and targeting

6 8-Oct Case: Calyx Flowers case write-up (group)

Lecture: Building a powerful brand (guest
7 13-Oct
speaker from Method)
8 15-Oct Lecture: Developing a value proposition

9 20-Oct Case: Datril

10 22-Oct Case: Southwest Conquistador Beer

Module 3: Managing Value

11 27-Oct Case: Nestle Contadina case write-up (group)

12 29-Oct Lecture: Product and brand management

13 3-Nov Case: Optical Distortion, Inc.

14 5-Nov In-class exercise: Optimal Pricing

Module 4: Managing Communications

15 10-Nov Lecture: Managing Communications

16 12-Nov Case: Hasbro POX

Lecture: Social media and advertising (guest
17 17-Nov
speakers)
Module 5: Managing Sales Growth

18 1-Dec Case: Unilever Brazil

19 3-Dec Case: Gillette Fusion case write-up (individual)

20 4-Dec Discussion: Lessons Learned

MODULE 1: THE BIG PICTURE

This module introduces the concept of marketing as an integrative discipline and discusses
the role of strategic marketing analysis in developing a business strategy and solving
business problems. We introduce the core notions of economic value analysis (EVA) and
value management. The concepts are illustrated using the Aqualisa and Levi’s cases. The
first session will also cover various organizational and course management issues, such as
providing students with a clear understanding of the structure of this course, assignments,
evaluation, and feedback mechanisms.

Session 1: September 22

Prepare:
 Read the course syllabus
 To get a head start on the financial concepts commonly used in marketing (and
the quantitative assignment), read Chapter 26 from Strategic Marketing
Management

________________________________________________________________________

Session 2: September 24

Lecture: The Marketing Framework

Prepare:
 Read SMM, chapter 1

________________________________________________________________________
Session 3: September 29

Case: Aqualisa Quartz

Key discussion question:

 What course of action should Harry Rawlinson take?
Analysis questions:
 What is the nature of the sales and purchase process for new and replacement
showers int he U.K.? How is the market segmented?
 What is the Quartz value proposition to consumers? To plumbers? To the
distribution channel?
 Why is the Quartz shower not selling as well as Aqualisa had hoped? Is the
Quartz shower just a niche product?
 What should Rawlinson do to generate sales momentum for the Quartz product?
Specifically, who or what segments of the market should he target? How should
he go about conveying the value proposition to these targets? Should he consider
lowering the price? What sales channels should he use?

Prepare:
 Case questions for discussion (submit a solution)
 Read SMM, chapter 3
___________________________________________________________________________

Session 4: October 1

 Lecture: A systematic approach to marketing planning

Prepare:
 Read SMM, chapters 2 and 4
 Submit quantitative assignment (individual)

___________________________________________________________________________
MODULE 2: UNDERSTANDING MARKETS

The focus of this module is on how to identify the "ideal" customers and develop a
sustainable value proposition for these customers. The core concepts of segmentation,
targeting, and positioning (STP) are introduced. We use the Calyx Flowers and Datril cases
to illustrate some of the key principles of customer, company, and competitive analysis. The
module ends with a discussion of the role of market research in managerial decision making.

Session 5: October 6

Lecture: Segmentation and targeting

Prepare:
 Read SMM, chapter 7

___________________________________________________________________________

Session 6: October 8

Case: Calyx Flowers

Key discussion question:

 Identify the key problem for Calyx Flowers and propose a course of action. Your
solution can be one of the solutions discussed in the case or you can propose an
alternative solution.
Analysis questions:
 Which attributes are important to people when they buy flowers?
 Is the flower market homogeneous or are there different customer segments? If
yes, what are these segments? How do they vary in their motivation for buying
flowers?
 To which segment can Calyx Flowers deliver superior value relative to the
competition?
 How should Calyx Flowers reach its target customers?

Prepare:
 Submit group case write-up. Identify the key problem for Calyx Flowers and
propose a course of action. Your solution can be one of the solutions discussed
in the case or you can propose an alternative solution. Use the Calyx Case
Analysis Template to write up your analysis.
 Case questions for discussion (submit a solution).
___________________________________________________________________________

Session 7: October 13

Lecture: Building a powerful brand (Michele Hall, Method)

___________________________________________________________________________
Session 8: October 15

Lecture: Developing a value proposition

Prepare:
 Read SMM, chapter 12

___________________________________________________________________________

Session 9: October 20

Case: Datril – Pioneering the Acetaminophen Market

Key discussion question:

What strategy would you recommend for Datril?
Analysis questions:
What is Datril’s positioning strategy? Is this strategy viable? Why?
How would Datril’s strategy affect the market and what reactions should be
expected from competitors?

Prepare:
 Case questions for discussion (submit a solution)
 Read SMM, chapter 3

__________________________________________________________________________

Session 10: October 22

Case: Southwest Conquistador Beer

Key discussion questions:

What type of information would be most useful to make a go/no go decision?
Which market research study or studies would you purchase and why?

Prepare:
 Case questions for discussion
 Submit solution by 1 pm, Wed., Oct. 21.

___________________________________________________________________________
MODULE 3: MANAGING VALUE

Session 11: October 27

Case: Nestlé Refrigerated Foods: Contadina Pasta & Pizza (A)

Key discussion question:

Would you launch the pizza?
Analysis questions:
Using the BASES model described in Exhibit 9, forecast the estimated demand
(trial and repeat) for the two pizza options under consideration: Pizza and
Topping and Pizza Only. Most of the data needed for the forecasting exercise is
available in Exhibit 21.
o Hints:
 In Exhibit 21 there is a big difference between Contadina users and non-
users on the top two box scores. This will affect the forecast
depending on what proportions are used for Contadina users vs. non-
users in the population.
 On p. 14 (2nd to last paragraph), Nestlé’s marketing research
department cautions us that parent brand usage could vary from 5% to
25%. It would be worthwhile to judge the sensitivity of the forecast
under 5%, 15%, and 25% parent brand penetration scenarios.
What do you learn from Exhibits 13, 14, and 15?
How does the pizza concept test data (Exhibit 19, 20, and 21) compare to the
pasta concept test data (Exhibit 6)?
What is your reading of Exhibits 23 and 24?
How would you compare the pizza opportunity to the pasta opportunity? What
are similarities and differences?

Prepare:
 Submit a group case write-up
 Read SMM, chapter 23

___________________________________________________________________________

Session 12: October 29

Lecture: Product and brand management

Prepare:
 Read SMM, chapters 15 and 16

___________________________________________________________________________
Session 13: November 3

Case: Optical Distortion, Inc. (A)

Key discussion question:

 How should ODI price the lenses? What pricing strategies would you consider
and choose?
Analysis questions:
 What is its economic value of the ODI lens to the egg farmer? How does this
compare to its cost? What is the breakeven price for ODI?
 How are farmers likely to react to the new product? What is your assessment of
the ODI lens as a new product innovation?
 How should ODI segment its market? In which market segments might ODI best
concentrate its efforts?
 What is your sales forecast for the first five years after initial launch? What are
the financial implications of your forecast?

Some helpful assumptions:

 The number of eggs lost due to trauma over the laying life of a bird (one year) is
ONE.
 A conservative estimate of the reduction in feed trough depth when birds are not
debeaked is 3/8".
Prepare:
 Case questions for discussion (submit a solution)
___________________________________________________________________________

Session 14: November 5

In-class exercise: Optimal pricing

Prepare:
 Read SMM, chapters 17 and 18
 Read the “Pricing a brand” mini case and think about how you would approach
the problem

___________________________________________________________________________
MODULE 4: MANAGING COMMUNICATIONS

This module is devoted to an in-depth discussion of the issues arising in managing

communications. We will cover concepts pertaining both to traditional advertising and
cutting edge tools for communicating value and engaging the customers.

Session 15: November 10

Lecture: Managing communications

Prepare:
 Read SMM, chapter 19
___________________________________________________________________________

Session 16: November 12

Case: Hasbro POX

Key discussion questions:

 What is POX’s core benefit proposition? What makes this game unique?
 What are the pros and cons of the traditional ad campaign (based on TV and print
advertising) and of the “take over the town” buzz event?
 What other non-traditional marketing campaigns could Hasbro have followed (at
the time of the case and today)?

Prepare:
 Case questions for discussion
___________________________________________________________________________

Session 17: November 17

Lecture: Social media and advertising (Brian Dunbar and Nir Eyal)

Nir Eyal , CEO of AdNectar worked previously for 4 years as the CEO & Co-Founder of
Sunshine Business Development, where he was responsible for financial management, sales,
and marketing for the company. Nir led the company until its successful sale to outside
investors in 2007. Nir has an MBA from Stanford and a BA from Emory University.
_____________________________________________________________________
MODULE 6: MANAGING SALES GROWTH

This module offers a discussion on developing strategies for increasing profitability. The
Unilever Brazil case presents a scenario in which the market leader is considering launching
a new offering to reach a large segment of low-income customers. The Fusion case
illustrates Gillette’s marketing strategy for introducing its innovative technology in the wet
shaving market during the past decade. The course will conclude with a summary of the
main issues discussed during the past ten weeks and offer guidance in using the key
marketing tools to address strategic marketing problems.

Session 18: December 1

Case: Unilever Brazil

Key discussion question:

Should Unilever enter the low-income consumer market? If yes, how should it
position its offering and what marketing mix should it use?
Analysis questions:
Identify Unilever’s motivation to enter the low-income consumer market. What
goal(s) was Unilever trying to achieve?
Analyze the low-income market and identify the underlying needs Unilever
should target with its offering.
Propose a positioning strategy for Unilever’s offering
Propose a marketing mix for Unilever’s offering (product formulation, brand,
price, incentives, communication, and distribution) that will enable Unilever to
achieve its goal(s)

Prepare:
 Case questions for discussion (submit a solution)
 Read SMM, chapter 24

___________________________________________________________________________
Session 19: December 3

Case: Gillette Fusion

Key discussion question:

What should Gillette do to turn Fusion into a billion dollar brand?
Analysis questions:
Identify the key aspects of Fusion’s strategy and tactics.
Evaluate the advantages and shortcomings of the proposed actions.
Propose a course of action for Procter & Gamble to achieve its goal of turning
Fusion into a billion brand.

Prepare:
 Read SMM, chapter 22
Submit an individual case write-up, proposing a course of action for Gillette to
achieve its goal of turning Fusion into a billion brand. Your solution can be one
or more of the solutions discussed in the case or you can propose an alternative
solution as well. If your solution is different from the ones proposed by Gillette,
your analysis should discuss the shortcomings of these solutions. Use the Fusion
Case Analysis Template to write up your case.

___________________________________________________________________________

Session 20: December 4

Discussion: Lessons learned

Prepare:
 Review the course materials

_________________________________________________________________________