Marketing Strategy 466-71 - Kellogg School of Management



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Marketing Strategy

466 71

Winter 2007-2008

Instructor: Tim Calkins Updated: 11/5/2007

Phone: (847) 467-3209

E-Mail: t-calkins@kellogg.northwestern.edu

Office: Jacobs 498

Course Description

The marketing strategy course is focused on helping you become strategic marketing leaders, so that you can create, gain support for and execute strategic marketing plans that will build strong, profitable and enduring brands and businesses.

The course builds on the material covered in Marketing 430 and other marketing classes; the course reinforces that material and introduces new concepts.

The course is certainly valuable for people who plan to go into marketing. It is also useful for people who are going into finance, strategy, operations and other functions. The course takes a broad view; every function is involved in marketing strategy.

The course is broken into five sections or modules.

Module A: Fundamentals. This section covers some marketing strategy basics, including why marketing strategy matters, customer advantage and strategic marketing plans. The section includes a review of positioning and differentiation.

Module B: New business strategy. In this section, we focus on strategies for new business creation, including strategies for established and emerging categories.

Module C: Established business strategy. This section focuses on strategies to grow established businesses, including margin strategies, core business growth strategies and new product strategies.

Module D: Defensive strategy. In this module, we look at defensive marketing. We review why defense is needed and how to develop strong defense plans.

Module E: Pulling it together. In the last part of the course we look integrating all the parts. This includes student business update presentations.

The class includes cases, readings, and a computer-simulation, Markstrat.

Marketing strategy is a challenging course. In particular, the Markstrat simulation requires a substantial time commitment. However, the class is a valuable learning experience; the material will help you analyze and understand businesses, develop and gain support for marketing plans and ultimately deliver strong business results.

Course Requirements

Teams

All of the class assignments are completed in teams. We will form teams in class 1. Team size depends on class enrollment; we have to get to 10 or 15 teams for the simulation.

As part of the evaluation process, group members grade each others participation. These grades play an important role in the determination of final grades. Weak team feedback can and generally will reduce a student’s grade by one full letter.

Class Participation (10% of class grade)

Class participation is critical to the success of the course, as the quality of the discussion is largely in your hands. Cold-calls are not uncommon. Please plan to attend all classes and to arrive ready for the case or discussion. In addition, please plan to stay for the entire class. I will do my best to start and end on time. In week 2 I’ll send around a seating chart.

Computers are not allowed to be used in class. Surfing seems to be an inevitable and unfortunate result, and it is distracting for everyone.

Markstrat-Team (50% of class grade)

Each team will be assigned a Markstrat company to manage. Your task will be to set objectives, develop strategies to achieve those objectives, and implement your strategies with appropriate tactical decisions over the course of the semester.

Teams develop three business updates during the semester. The first two are written and the third is a presentation to the class. The first two updates count for 10% of the class grade and the third update counts for 20% of the class grade.

Actual Markstrat results count for 10% of the class grade.

Case Analysis-Team (15% of class grade)

Each team will submit one case analysis. Most teams will work on the Marlboro case, with two teams presenting Marlboro and the rest completing a written analysis.

Two teams will present the Steinway case instead of working on the Marlboro case. Early in the semester I’ll determine which teams will present. The presentations are 10 minutes in length, and the write-ups are no more than four pages.

Final Assignment-Team (25% of class grade)

For the final assignment, students will develop a marketing plan for a company or organization of your choice. The paper should not exceed seven pages including exhibits, and should include the one page marketing plan summary discussed in class.

Course Administration

I am on campus most days. I am happy to meet to discuss the course, Markstrat, careers and life; just call or send an email to set up some time.

I will be using Blackboard to post announcement, class notes and other materials. Please check Blackboard regularly for updates.

The attached schedule shows the class plan, with topics, assignments and readings. The class schedule will almost certainly change during the semester due to pacing and guests. The latest schedule is always posted on Blackboard.

Required Readings

Larreche and Gatignon, MARKSTRAT Online Student Handbook (StratX 2003)

This is a required book; you can’t play the Markstrat simulation without it. So please purchase this book promptly. Please note that you are really purchasing the software license, so used books don’t generally work.

Case packet

I’ve pruned the case material down substantially over the years because the simulation takes a lot of time. As a result, completing the readings for each class is important.

Optional Readings

Tybout and Calkins, Kellogg on Branding (2005)

This is an excellent book that you really should acquire and read. Take that with a grain of salt, however, because I am, for obvious reasons, biased. That said the book contains a number of great chapters. Two of them are in the case pack. The rest are worth a read, too.

Walker, Mullins, Boyd and Larreche, Marketing Strategy (6th edition, 2007).

This text provides a more academic review of the concepts we will discuss. Given the size of the case packet and other work in the course, however, I’ve made it optional reading.

Kellogg School of Management

Marketing Strategy

Winter, 2007-2008

Updated 11/5/2007

Session Topics Assignments for this Class

1: 1/8 Course Introduction Read: Markstrat Online Student Handbook

Markstrat Introduction Submit: Team lists

Markstrat decision 1 due 1/13, 11:30 PM

2: 1/15 Marketing Strategy Fundamentals Prepare: Poland Spring case

Poland Spring Case Read: What is Strategy?

Read: Brand Positioning

Optional reading: KoB, chapters 14 and 15

Optional reading: Text, chapter 6

Markstrat decision 2 due 1/20, 11:30 PM

Markstrat update 1 due 1/20, 11:30 PM

3: 1/22 New Business Strategy-1 Read: Writing Great Marketing Plans

Carolina Lunker Sauce Case Read: Market Driving Strategies

Read: Eager Sellers

Prepare: Carolina Lunker Sauce Case

Attend: Team meetings

Optional reading: KoB, chapter 4

Optional reading: Text, chapter 7

Markstrat decision 3 due 1/27, 11:30 PM

4: 1/29 New Business Strategy-2 Prepare: Crestor Case

Crestor Case Read: First Mover Advantages

Read: Do you always have to be the First….?

Markstrat decision 4 due 2/3, 11:30 PM

Markstrat update 2 due 2/3, 11:30 PM

5: 2/5 Established business strategy-1 Read: The Image and the Brand

Lenovo Case Prepare: Lenovo Case

Markstrat decision 5 due 2/10, 11:30 PM

6: 2/12 Established business strategy-2 Read: Brand Portfolio Strategy

Marlboro Case Read: Extend Profits, No Product Lines

Prepare: Marlboro case

Submit: Marlboro case analysis

Optional reading: KoB, chapter 5

Optional reading: Text, chapters 9 and 10

Markstrat decision 6 due 2/17, 11:30 PM

7: 2/19 Guest Speaker

Markstrat decision 7 due 2/24, 11:30 PM

8: 2/26 Defensive strategy Read: Why Good Companies Go Bad

A.1. Case Read: Meeting the Challenge

Prepare: A.1. case

9: 3/4 Markstrat presentations Prepare: Presentations

10: 3/11 Steinway case Prepare: Steinway case

Markstrat debrief

Course summary

Final assignment due 3/17, 11:30 PM

Kellogg School of Management

Marketing Strategy

Assignments

Markstrat Management Update 1

Provide management with a marketing plan for your company, not to exceed 4 pages including exhibits. Plans should be clear, focused and convincing.

Updated should include: -Objectives: Your goals for the 7 periods, including profit

-Strategies: Key initiatives to deliver your objectives

-Plans: Plans to execute against your strategies

Markstrat Management Update 2

Provide senior management with an update on your progress to date, not to exceed 4 pages including exhibits. Plans should be clear, focused and convincing.

Updates should: -Link back to your initial objectives and strategies

-Highlight drivers of your results

-Lay out your plan going forward

Markstrat Management Update 3

Prepare a presentation for management to review your progress to date and plans going forward. Presentations should be 10 minutes in length. There will be additional time for questions.

Presentations should: -Link back to your objectives and strategies

-Highlight key drivers of your results

-Lay out your plan going forward

Marlboro Case Assignment

Answer the following question: Was the Marlboro strategy rolled out by PM a good idea? Why or why not?

Two teams will present this assignment; the rest will complete a 4 page paper, including exhibits. Excellent papers and presentations will put forth a clear position and provide strong support.

Final Assignment

Develop a marketing plan for a company or organization of your choice. Play the role of a consultant hired to develop the plan. Set objectives, identify strategies and provide sample tactics/plans. The plan should not exceed seven pages including exhibits, and should include the one page plan summary discussed in class. Excellent plans will have clear and linked objectives, strategies and plans and will be convincing.

Kellogg School of Management

Marketing Strategy

Case Questions for Class Discussion

Poland Spring

Congratulations. You’ve just been hired to replace Mike Schott. What will you focus on first? Why?

Carolina Lunker Sauce

You have been hired to advise the Cobb family. Should they reduce the price of Carolina Lunker Sauce as requested? Why or why not?

Crestor

How did Lipitor overtake Zocor?

How should AstraZeneca launch Crestor?

Lenovo

Why did Lenovo acquire IBM’s PC division?

What branding challenges does Lenovo face? How should the company address them?

A.1.

1. Should A.1. defend? Why or why not?

2. If A.1. should defend, what should it do?

Steinway

1. How strong a brand is Steinway?

2. What is the core business challenge facing Steinway?

3. Should the new owners invest in the Boston by Steinway brand? Why or why not?

Kellogg School of Management

Marketing Strategy

Group Evaluation Form

Please list below each member of your group. For each person, assign a grade (A, B, C, D, F) that reflects their overall contribution to the group’s output. Please consider the quality and quantity of their work. Responses are confidential, and can have a substantial impact on final class grades. Feel free to provide comments.

Your name:

Your team (industry and color):

Team Member Grade

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Comments:

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