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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.
