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1 – 2 of 2Shu-Hsun Ho, Heng-Hui Wu and Andy Hao
Learning objectives of this case is to understand the hairdressing industry and develop the sub-branding strategy. After reading this case and practicing in class, students should…
Abstract
Learning outcomes
Learning objectives of this case is to understand the hairdressing industry and develop the sub-branding strategy. After reading this case and practicing in class, students should be able to understand this business and marketing terminology and apply them in the real world. Students will learn the branding strategies: brand extension, brand architecture and brand portfolio. Students will design (DS) the brand name for the new store.
Case overview/synopsis
Case synopsis Mr. Tai-Hua Teng (aka TR) was a hair artist and opened his first hair salon, vis-à-vis (VS), in 1989 using a high-end positioning strategy. VS focused on offering superb and diverse services to keep ahead of the competition rather than trying to undercut prices. VS hair salon had a solid foundation based mainly on the elite, celebrities and high-salary customers. In 2017, TR owned 16 stores (including one in Canada and two intern salons), 1 academy, 265 employees and 3 brand names. The three brand names were VS, DS and concept (CC). DS and CC were less known to the public, so now these two brands had been carried the parent name and were known as VS DS and VS CC. Quick cut hairdressing businesses were thriving because customers needed quick and cheap hairdressing services. Acknowledging the benefits of entering the highly competitive quick haircut market, TR began to contemplate the new brand name and services to offer. VS had adopted the brand house strategy but TR wondered if it was better to have an individual brand name when entering the quick haircut market. The sub-branding strategy carried the established quality assurance of VS but there was possible brand overlap. An individual new brand name might lack the well-established values from VS but it also showed the potential to reach different segments of customers. TR’s decision to make: a branded house or hybrid? This case showed a high-end hair salon facing the need for simplicity in the market and considered how to expand its business to the lower-end market. Keywords: hairdressing, brand extension and sub-branding strategy.
Complexity academic level
Level of difficulty: easy/middle level to undergraduate courses specific prerequisites: it is not necessary for students to prepare or read any marketing theory or chapters of the textbook. However, it would help a more in-depth discussion if students know the CCs of brand architecture, brand portfolio, brand extension and line extension.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 8: Marketing.
Details
Keywords
Abstract
Subject area
Leadership.
Study level/applicability
The case is suitable for MBA, Executive level courses.
Case overview
Yongye Group is a biotechnological enterprise in Inner Mongolia, China. In China, people lack trust in economic transactions due to the transitional state of the economy, especially regarding food safety. To respond to this situation, Wu Zishen, the chairman of the Board of Directors of Yongye Group, was determined to build trust among employees, distributors, farmers, and consumers towards the company. To this end, he started using a creative incentive system with employees and stakeholders: the pay-before-performance incentive system. According to this system, the reward is delivered in advance, contrary to be paid after the fulfillment of the task. This practice is meant to transform employees' work attitude from a passive “being told to work” to a more proactive “I want to work” mentality. When such an incentive system is practiced with customers and external distributors, it sends a message that the company is “treating customers as company employees”, which means that they are trusted as if they were part of the company itself. Wu Zishen also introduced a coherent series of leadership practices that generate a truly proactive culture in the organization.
Expected learning outcomes
From this case, students will learn how to create a proactive culture in business organizations and the effect of pay-before-performance on employees' work motivation.
Supplementary materials
Teaching notes and an exercise for class-based discussion are available.
Details