Case Synopsis, Uses, Discussion Questions, and Answers
1
CASES
Uses of Cases
Case Synopsis, Uses, Discussion Questions, and Answers
2
Introduction to Case Analysis
Case Analysis and Presentation Suggestions
• Case situations can be one of the most effective instructional methods for enhancing student
involvement and stimulating understanding of retailing management concepts.
• When evaluating cases, students should address the following areas:
1. background of the situation, including organizational factors and the external
environment,
Case Synopsis, Uses, Discussion Questions, and Answers
3
1. carefully evaluate all information presented in the case,
2. list all possible problems and concerns, being sure to look at causes of the problem area,
not symptoms,
• For students to fully benefit from a case analysis assignment, they must PREPARE and
PARTICIPATE in the discussion.
Case Method Teaching Resources
• The following instructional reference materials regarding the case method are available from
Harvard Business School, Publishing Division, Operations Department, Boston, MA 02163-
1098; write for details regarding cost and availability:
1. Hints for Case Teaching (copy available upon request),
• A video, “Teaching by the Case Method” is available from the American Marketing
Association, Video Cassette Offer, 250 South Wacker Drive, Chicago, IL 60606; contact
AMA for details. The presentation addresses 1) how to conduct a case discussion, 2)
evaluation of case participants, 3) constructing a case course, and, 4) implementing and
evaluating a case course.
Case Synopsis, Uses, Discussion Questions, and Answers
4
CASE 1 – Tractor Supply Company
Synopsis: Tractor Supply Company (TSC) is a relative large, but unknown retailer that targets
people seeking a rural lifestyle that operate farms or ranches as hobby.
Use:
Chapter 1 Illustration of a retailer with a unique target market
Discussion Questions
1. What is Tractor Supply Company’s growth strategy? What retail mix does TSC provide?
TSC targets the hobby farmer/rancher, who are fully employed in jobs but want to enjoy a rural
lifestyle and operate a farm or ranch in exurbs of a city. The retail mix of TSC is:
2. How has TSC’s target customers changed over time? Why?
3. How vulnerable is TSC to competition? What companies represent its primary
competitors?
Not very vulnerable because the target segment is not price sensitive or very knowledge about
4. Why does TSC place so much emphasis on training employees?
Customer service is critical because the customers in the target market are not very
5
CASE 2 – Providing a Retail Experience: Build-A-Bear Workshop
Synopsis: Build-A-Bear Workshop is a unique chain of over a 100 stores where customers can
build their own teddy bears and, in general, obtain a novel and fun experience. The case
highlights the strategy and operations of a typical store and types of experiences enjoyed
by customers.
Use:
Chapter 1 Provides a general overview of a unique retail concept.
Chapter 2 Illustrates the retail strategy and operations of an innovative specialty retailer.
Discussion Questions
1. Is the Build-A-Bear concept a fad, or does it have staying power?
Children’s fascination with huggable, stuffed animals, especially Teddy Bears, has only grown the
last several decades. Build-A-Bear’s core emphasis is on the giving children an environment of
2. What can Build-A-Bear do to generate repeat visits to the store?
For repeat visits, consumers (in this case, children) must be exposed to something novel and
Case Synopsis, Uses, Discussion Questions, and Answers
CASE 3: Blue Tomato: Internationalization of a Multichannel Retailer
Synopsis: Blue Tomato is the leading European multichannel retailer for board sports and
related apparel. This case describes the different distribution channels adopted by the
company, as well as the internationalization of Blue Tomato’s business activities.
Use with: Chapter 3 “Multichannel Retailing,” Chapter 5 “Retail Market Strategy”
Discussion Questions
1. What strengths do the different distribution channels have, from the company’s
perspective?
The advantage of traditional, brick-and-mortar stores is the close and direct contact they offer with
(potential) customers, a level of contact that aligns with Blue Tomato’s overall philosophy.
2. Which synergies has Blue Tomato created across different channels? What additional
actions might it take to become an omnichannel retailer?
In its brick-and-mortar stores, Blue Tomato has installed kiosks, which enable consumers to find
3. What key challenges remain for Blue Tomato in its efforts to coordinate these different
channels?
Case Synopsis, Uses, Discussion Questions, and Answers
7
The key challenge for Blue Tomato is to provide a consistent face to customers across all contact
points. This demand requires not only that its customer orientation and commitment to providing
4. Which challenges might Blue Tomato face as it expands its business activities
internationally?
If the company decides to operate more brick-and mortar stores in foreign countries, it will need to
invest large sums of capital.
Case Synopsis, Uses, Discussion Questions, and Answers
8
Case 4- Staples, Inc
1. Assess the extent to which Staples has developed a successful multichannel strategy.
What factors have contributed to its success?
By identifying which of the three major food retailer categories (conventional supermarket, big-box
2. What are the advantages and disadvantages of using kiosks as a part of its approach?
Students must evaluate both the pros and the cons of Staples’s in-store kiosks.
3. How should Staples assess which SKUs to keep in its stores reserve on the Internet?
Students must evaluate both the pros and the cons of Staples’s in-store kiosks.
4. How do the Staples Copy and Print centers differentiate from the competition?
The Copy and Print centers allow Staples to offer value added services. These centers enable
Case Synopsis, Uses, Discussion Questions, and Answers
CASE 5 – The Decision-Making Process for Buying a Bicycle
Synopsis: The Sanchez family buys three bicycles—one for their daughter, one for their son, and
one for the father. This case illustrates the steps customers go through buying a bicycle
for their children and themselves. Can be used to discuss the stages in the buying
process, the factors affecting the purchase decision, and how the purchase decision
differs depending on the buyer’s knowledge and needs.
Discussion Questions
1. Outline the decision-making process for each of the Sanchez’ bicycle purchases.
The stages in the decision process shown in Exhibit 4-2 are listed down the left-hand column
Case Synopsis, Uses, Discussion Questions, and Answers
10
Step in Buying Process
Daughter
Son
Father
Store Choice
Need
Recognition
(4) locate store
selling bicycles
(6) goes in
convenient
bicycle shop
(5) call store
(4) saw Montgomery
Ward ad
(5) can’t locate
brand
(6) select dept. store
for low prices
Postpurchase
Need
(1) $100 from
bicycle
(1) $200 from
bicycle
(1) buying bike
Information Search
2) look in Penny’s’
catalog
(2) internal search
through memory for
information on last
purchase
(5) looked at
bicycles on display
(2) external
search, libraries,
magazines
Post Purchase
Evaluation
(8) dissatisfaction
with choice; chrome
rusted, poor tires
2. Compare the different purchase processes for the three bikes. What stimulated each of
them? What factors were considered in making the store choice decisions and purchase
decisions?
The process for both son and daughter were stimulated by the $50 gift from their grandparents.
Case Synopsis, Uses, Discussion Questions, and Answers
11
3. Go to the student side of the Online Learning Center (OLC) and click on multiattribute
model. Construct a multiattribute model for each purchase decision. How do the
attributes considered and importance weights vary for each decision?
Attribute
Importance Weights
daughter
son
father
Price
10
6
7
Color
10
10
1
Flexible setup
9
Weight
4
7
9
Durability
3
10
9
Case Synopsis, Uses, Discussion Questions, and Answers
CASE 6: Parisian Patisserie “Maison Ladurée” Goes Global
Synopsis: Ladurée, a famous French pastry company, is known worldwide for its macaroons but
only recently has entered the US market. This entry has produced not only opportunities but also
challenges for this company. In particular, this case focuses on questions related to appropriate
locations, types of retail ownership, and ideal target markets.
Discussion Questions:
1. What is Ladurée’s retail strategy in the United States? (Chapter 5)
Ladurée, an upscale pastry brand, targets high income, well-educated customers and fashion-forward
2. Explain why Ladurée owns its stores in some countries but franchises with local
licensees in others. (Chapter 5)
Business in a foreign country always entails risk. Some countries are riskier than others, so operating
franchises with a local retailer is sometimes a better option than trying to assume all the risk and
going it alone.
Case Synopsis, Uses, Discussion Questions, and Answers
13
Case Synopsis, Uses, Discussion Questions, and Answers
14
3. Which type(s) of retailing format(s) and location(s) are best suited to match
Ladurée’s marketing strategy in the United States? Cite the advantages and
disadvantages of each. (Chapter 2)
Retailing
formats/location
Advantages
Disadvantages
Specialty stores
– Enough space to have a deep
assortment: pastries, macaroons, and
additional products (e.g., fragrances,
it
– High costs: rent, store layout,
salespeople
Pop-up stores
Bloomingdale and in the CBD, where they
– Creates buzz: spreads the image of
Ladurée around big cities in a cost-
effective way (rent and wages only for a
short period of time)
Upscale malls
– Attracts dwellers from the surrounding
area with different leisure products and
services (e.g., apparel, electronics, books
and music, food courts)
– Draws customers who did not plan to
come into a Ladurée store
– Traffic and nature of customers known
– High rent and long lease
– High occupancy costs
– Food courts that can compete
with Ladurée’s store
– Strong mall management control
over operations
– Not possible to park in front of a
Case Synopsis, Uses, Discussion Questions, and Answers
15
4. Could Ladurée sell its products online in the United States? Why? Why not? Explain.
(Chapter 3)
It could sell products online, though it needs premium transportation capabilities, because pastry
products are perishable goods that need specific transportation facilities (freezers, anti-bacterial).
Even if the price would be somewhat more expensive because of extra transportation costs,
customers seemingly should be willing to pay for something really special, and Ladurée’s products
are special.
Case Synopsis, Uses, Discussion Questions, and Answers
16
CASE 7 – Retailing in India: The Impact of Hypermarkets
Use:
Chapter 1 Example of the retail industry evolving globally
Chapter 2 Differences in retail formats in India and the U.S.
Chapter 4 Illustrates differences in shopping behavior across the globe
Chapter 5 Example of international retailing and entering a foreign market
Discussion Questions
1. How can a hypermarket located in India reach out to more experienced consumers and
orient them to shopping in their stores?
– It will be hard initially for a large retailer to initially attract consumers who have shopped in
mom and pop stores their entire lives in India due to traditions of not living beyond their
2. What does it say about the Indian Government concerning the fact that they are willing
to spend $150 billion (U.S.) to improve the nation’s infrastructure? Is this good news for
international retailers?
– If the Indian Government is willing to spend so much money to improve the capabilities of
the country, they are expressing their commitment to hypermarkets and organized retailing
in general.
Case Synopsis, Uses, Discussion Questions, and Answers
17
3. Identify the main changes being seen in Indian consumers. How can international
retailers learn more about India’s under 25 demographic?
– Indian consumers are becoming more concerned with style and quality as opposed to price.
– As the incomes of Indian’s increases, purchases of non-food related items increases, which is
Case Synopsis, Uses, Discussion Questions, and Answers
CASE 8– Diamonds from Mine to Market
Synopsis: The retailer jewelry industry has been affected by concerns over the source of diamonds.
Blood diamonds, often called conflict diamonds, are mined in war torn African countries
by rebels to fund their conflict. The rebels grossly abuse human rights, often murdering
and enslaving the local populations to mine the diamonds. Jewelry retailers have had to
respond to the issues raised by human rights groups.
Use:
Chapter 4 –Buying behavior for diamonds
Chapter 5 – Effects of changes in the environment on the retailing diamonds .
Chapter 14 – Sourcing issues for diamonds
Use with Video 12 – How to Buy Diamonds.
Discussion Questions
Before you assign this case you could ask students if they have seen the movie, Blood Diamond. You could ask
them to share their reactions to the movie and see if they are aware of the Kimberly Process. Did the movie raise
awareness about how diamonds can fuel conflict?
1. How important is it for consumers to buy conflict-free diamonds? Why is this the case
– Students will express different points of view on this subject.
2. What could the jewelry industry do to inform diamond customers about buying conflict–
free gems and the Kimberly Process?
– Did the film Blood Diamond help to increase public awareness?
Case Synopsis, Uses, Discussion Questions, and Answers
3. Select a retail jewelry store in your area to visit. Is a policy on conflict diamonds posted
on the company’s web site? Visit the store location in person and ask them the three
questions posed at the end of the case. Report back to the class with the answers. What
did you learn from the web page and site visit?
– You could divide the class up by the different major diamond retailers so that pairs or teams
of students visit different companies.
Case Synopsis, Uses, Discussion Questions, and Answers
20
CASE 9 – Starbucks’ Expansion into China
Synopsis:
This case examines Starbucks’ expansion strategy into China. Focusing on the
marketing mix elements (product, promotion, price and place) and human resources,
Starbucks’ success in China is revealed over the past thirteen years. Today, Starbucks’
mission is to continue expansion efforts in China with the end goal of having 1,500
stores by 2015. Students completing this case will learn about what made Starbucks
successful in this emerging market and debate over whether Starbucks can continue to
profitably expand in China.
Use:
Chapter 4
Chapter 5
Chapter 9
Chapter 18
Adapting the marketing mix to reach different consumer segments
International market expansion growth strategy
Training employees to become brand ambassadors
Creating an excellent customer service experience
Discussion Questions
1. Prepare a SWOT analysis based on the case to support Starbucks’ expansion plans in China.
Based on your SWOT analysis, what recommendations would you make to Starbucks’ CEO with
regard to the market development growth strategy for this country?
SWOT Analysis for Starbucks’ Expansion into China
Strengths (Keep/Maintain)
– Recognized global brand
– Quality product – premium coffee
– “Western coffee experience”
– Offers a comfortable environment for
patrons
Weaknesses (Improve)
– Large company with many other growth
opportunities
– Forced to close underperforming stores in
the U.S. after rapid expansion
– Lacking knowledge of the China market