978-0078028946 Chapter 11 Case

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Chapter 11 Marketing Strategies For The New Economy

Case: Hubspot Inbound Marketing and Web 2.0

Author(s): Steenburgh, T.; Avery, J.; Dahod, N.

Publisher: Harvard Business Publishing

Publication Date: 2009

Reference: 9-509-049

Abstract: This case introduces the concept of inbound marketing, pulling customer prospects

toward a business through the use of Web 2.0 tools and applications like blogging, search engine

optimization, and social media. Students follow the growth of HubSpot, an entrepreneurial

venture which, in its quest for growth, faces significant challenges including: developing market

segmentation and targeting strategies to decide which customer to serve and which to turn away,

configuring pricing strategies to align with the value delivery stream customers experience, and

determining whether inbound marketing programs can generate enough scale or whether

traditional outbound marketing methods need to be employed to accelerate growth.

Case: Slanket: Responding to Snuggie’s Market Entry

Author(s): Deighton, John; Kornfeld, Leora

Publisher: Harvard Business School

Publication Date: 2009

Reference: 9-510-034

Abstract: How does a pioneer in a new product category deal with the runaway success of a

follower? Can search engine marketing and social media help? In 2008 Slanket CEO, Gary

Clegg, found that his product, a blanket with sleeves, had been eclipsed by The Snuggie, another

sleeved blanket. Snuggie made a brazen entry into the market with a $10 million spend on

television infomercials. The Snuggie quickly became a pop culture phenomenon, talked about on

popular television programs such as Oprah and The Tonight Show with Jay Leno, and paid mock

tribute to on web sites such as YouTube, where hundreds of video parodies could be found.

Clegg had been counting on building his Slanket brand. Will the coming of Snuggie mean the

end of Slanket?

Case: Radiohead: Music at Your Own Price (A);

Author(s): Elberse, Anita; Bergsman, Jason

Publisher: Harvard Business School

Publication Date: 2008

Reference: 9-508-110

Abstract: In October 2007, the British band Radiohead caused a stir when it announced it would

allow customers to decide how much to pay for its new album, released exclusively as a digital

download and available only from the band’s own web site. The pricing plan represented a

significant break from the industry standard of fixed prices for music, typically 99 cents for

individual songs and upward of $9.99 for complete albums. How viable is such a

“name-your-own-pricing” plan? And what does Radiohead’s move say about the future of the

music industry?

Case: The Brita Products Co

Author(s): Deighton, John

Publisher: Harvard Business School

Publication Date: 1999, Revised 2002

Reference: 9-500-024

Abstract: Describes a race for installed base, with increasing returns to scale and a delicate

acquisition versus retention balance. Clorox’s Brita skillfully exploits a tide of water safety

concerns, growing a home water filtration business from inception to a 15% U.S. household

penetration in ten years. The decision in the case arises as the period of increasing returns seems

to be drawing to a close, and management must use its legacy, an installed based and a strong

brand equity, to take the business forward into a less friendly environment. Students can model

the relation between the primary demand for pitchers and the derived demand for filters to decide

where they want to put future investments.

Case: CVS: The Web Strategy

Author(s): Deighton, John, Shah, Anjali

Publisher: Harvard Business School

Publication Date: 1999, Revised 2002

Reference: 9-500-008

Abstract: How should America’s second-largest pharmacy chain respond to the challenge from

online drugstores? What threat does the web pose to bricks and mortar distribution of

prescription drugs and the other items that make up 50% of a drugstore‘s sales? This case

describes the purchase of Soma.com by CVS, and its integration into the corporation. A number

of tactical questions remain to be answered, and then there is the larger strategic question—why

do this at all? Teaching purpose: Issues in the integration of traditional retailing with online

channels.