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1. To analyze the various business models and choose the best model to contribute maximum profit to the company.2. To understand the importance of customer management with the help of the Net Promoter Score in the food retail context.3. To develop customer loyalty strategies and implement them to improve customer management?

39 Bakers, a multi-outlet bakery chain in Jammu, India, is run by its founder Gagan. 39 Bakers, through its retail outlets across the Jammu region, offers a variety of products, ranging from bakery items that include blends of Indian and Italian cuisines, offering more than 1000 stock keeping units (SKUs). Through its high-quality offerings at an affordable price range, the brand has carved a niche in the hyper-competitive bakery market of the Jammu region. Gagan, has closely seen the Jammu market and customer preferences and strongly perceived that the customers in the Jammu region are very price sensitive. Thus, he has always been very reluctant to increase the prices of his product offerings at 39 Bakers. He has always believed that any drastic price rise may lead to immediate dissatisfaction and customer churn and therefore has not increased the prices at 39 Bakers for two years in a row. While this decision of Gagan paid off in terms of its popularity and recognition as one of the highly recommended bakery chains among customers, it drastically impacted the bottom line (i.e. profitability) at 39 Bakers, especially in the year 2020–21. Getting popularity at the cost of dipping profitability made Gagan rethink his decision to be protective of price increases at 39 bakers. How can he measure customer satisfaction and loyalty? Which loyalty strategies will work for the huge customer base of Jammu? Should he change his business model from B2C to B2B? How can loyalty be established? How can he manage his existing and loyal customers through price increases?

The case study is suitable for undergraduate and postgraduate courses in Marketing Management and Retail Marketing. The case study’s focus can be on the importance of pricing, business model evaluation, customer management analysis, customer loyalty, Customer Loyalty analysis, and net promoters score. The case can also be useful to entrepreneurs and regulators.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

In September 1990, the financial controller of this Italian subsidiary of a large pharmaceutical company must analyze the implications of two different strategies for introducing a new product into the Italian market: co-marketing distribution, in which Glaxo would permit another company to market the same product but under a different brand name; and direct sales, under which Glaxo's own sales force would be the sole channel of distribution. The tasks for the student are to scrutinize and correct financial forecasts contained in the case and then value the alternative cash flow streams. The purpose of the case is to exercise students' forecasting and valuation skills and to illustrate the application of discounted cash flow analysis to the choice of marketing policies.

At three o'clock in the morning on September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (“PPR”) and LVMH Moët Hennessy Louis Vuitton SA (“LVMH”). After a contest for control of Gucci lasting over two years, PPR has emerged as the winner. PPR and LVMH have agreed for PPR to buy about half of LVMH's stock in Gucci for $94 per share, for Gucci to pay an extraordinary dividend of $7 per share, and for PPR to give a two and a half year put option with a strike price of $101.50 to the public shareholders in Gucci. The primary task for the student in this case is to recommend a course of action for Hautillac: should he sell his 2% holding of Gucci shares when the market opens, continue to hold his shares, or buy more shares? The student must estimate the risky arbitrage returns from each of these choices. As a basis for this decision, the student must value the terms of payment and consider what the Gucci stock price will do upon the market's open. The student must determine the intrinsic value of Gucci using a DCF model as well as information on peer firms and transactions. The student must consider potential synergies between Gucci and PPR and between Gucci and LVMH. The student must assess the likelihood of a higher bid, using analysis of price changes at earlier events in the contest for clues.

Strategic Management, Strategic Marketing Management.

Bachelors, Masters.

Shaheen Ballpoints is a project of Shaheen Group of Industries who, apart from manufacturing and marketing writing instruments, are engaged in diversified businesses of sanitary fittings, sanitary tiles, baby diapers and plastic films. Launched in 2001-2002, Shaheen Ballpoints had to compete against established ballpoint pen brands in a growing market. Shaheen Ballpoints believed that by setting out new standards for technology and packaging being used in the writing instruments industry, they would be able to compete with these giants. Shaheen Ballpoints experienced a mega launch of its ballpoint pens range in 2002. The wholesale market of Pakistan welcomed Shaheen Ballpoints quite generously and they paid in advance for their stocks which, generally, was not a norm of the writing instruments industry of Pakistan. However, soon after its launching, Shaheen Ballpoints realized some of the technical and marketing issues in its systems and had to pull all its stock back from the market just after six months of its launch. All the major resellers avoided Shaheen's stocks which was a major setback for the Shaheen Group. They re-launched the ballpoints in early 2004.

It is expected that the students will be able to understand the: issues associated with using the diversification strategy to grow the business; strategic implications of challenging the established industry norms and practices; and channel relationships within the industry and the need to tune-up the channel relationship strategy according to the varied nature of diversified businesses.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Students after reading the case will learn about the issues and challenges of expansion in emerging markets. Global expansion versus multinational expansion. Stardardization versus localization. Socio-cultural aspects in international marketing. Leadership succession in multinational companies.

The case is about Starbucks’ journey of global expansion. It focuses on challenges in emerging markets. It also talks about the challenges to new CEO Kevin Johnson post stepping down of iconic leader Howard Schultz.

MBA Executive MBA Specialisation in Strategy, International Marketing.

Teaching Note are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 5: International Business.

Retail marketing: it can be discussed in a retail marketing course to explain the growth and expansion of the retail chain and illustrate the features of a retail model that can consider franchise as a method to expand or distribute its branded merchandise in other retail outlets. The case will also help assess the financially viable growth. Marketing Management: It can be useful for a comprehensive yet straightforward explanation of marketing mix price, promotion, place, and product, also at the same time it serves to explain the importance of customer service in terms of retailing. Strategic Marketing: The case provides varied growth options that are being considered by retail organizations, which gives the student real-time opportunity to arrive at strategic decisions by considering financial viability, internal strengths (SWOT analysis), franchising as a growth option.

This case can be used in foundation course on retail marketing or even in strategic marketing in postgraduate management program, or the dilemma can be explained as a part of a marketing course for postgraduate, executive programs, management development programs.

Kanwar, the owner of 39 Bakers, was one of the fastest-growing retail outlets in Jammu, India. He had been successful in carving his pie for himself with its unique bakery products of more than 1000 variety of, break-even point price, everyday surprise product (EDSP), reasonable price, open kitchen concept, hygiene, excellent customer service. Within three years, 39 Bakers had grown from one to eight outlets, and revenue had increased to US$68,621, and vision was to achieve US$2m within the next three years. To achieve his vision, he made two business expansion plans either to start product distribution to other retailers like an FMCG company or to go ahead with the business format franchising model. The investors needed a detailed planned within three days. But Kanwar had to decide should he expand geographically and start with franchise model or shall he establish his brand with product distribution, and then go for the franchise model, which plan would make him reach his vision by 2023? Which strategy would be efficient? He indeed wanted to go for the franchise model, but the question is when?

This case will help entrepreneurs to decide on services and retail industries to expand their business and explore available growth options. It offers a platform to talk about how often franchising used to fuel growth. Either you select to be a franchisee or independent business owner or provide franchising opportunities or start your distribution network, a detailed business plan is one of the most critical decision-making activities. Without adequate details, it can make your life's most expensive option. After students have worked on the case and the task questions, the students can analyze whether a company should grow through product distribution, franchise or both; appreciate the significance of a business plan and to recognize all aspects of a retail operation, including the marketing mix; carry out strengths, weakness, opportunities, threats analysis and can develop Internal and External Factor Evaluation Matrix (IFE AND EFE); and examine various franchise options available for business expansion in a developing econ.

Position in course – This case can be used in foundation course on retail marketing or even in strategic marketing in postgraduate management program, or the dilemma can be explained as a part of a marketing course for postgraduate, executive programs and management development programs.

Teaching notes are available for educators only.

CSS: 8 Marketing.

Can the return of its founding CEO turn a lagging Starbucks around? Howard Shultz must map a strategy that addresses the company's decreasing sales and perhaps too rapid growth. Had the previous CEO's efforts to streamline operations compromised the Starbucks experience or was a changing economy to blame? Schultz considers whether to close existing stores, slow U.S. growth while expanding overseas, and improve the customer experience, which he believed had eroded the company's value proposition.

Upon completion of this case study, students will have learned to identify and analyze pending organizational failure, based upon company data. They will have formulated a business strategy (either cost leadership, differentiation or focus), as well as propose process improvements to cope with changing macroeconomic factors, costs, supplier conditions, and especially talent management and retention. Students will practice the logical organization of information, articulating the key facts and assumptions underlying their solutions. They will practice communicating with a possibly hostile executive team, to whom they defend their proposal based on its merits.

This case recounts the recent history of the XT Beauty, a fictionalized but real company headquartered in Moscow, selling professional cosmetics, electrical instruments and equipment for beauty salons in St. Petersburg, and other cities in Russia. XT Beauty enjoyed successful growth until the onset of the 2014 economic crisis when consumer purchasing power plummeted. Students consider both the obstacles and opportunities presented by an emerging Russian market, customer behavior in a recession, managing sales talent, the leadership style of women, as well as key operational, and financial issues as the company react to a deepening economic crisis in an uncoordinated manner. The case is an introduction to the Russian business culture and operational environment. It focuses not only on challenges but also the opportunities in the anti-cyclical market for beauty products.

Master’s students in international business, human resources, operations and MBA candidates.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 1: Accounting and Finance

Gary Parr, deputy chairman of Lazard Freres & Co. and Kellogg class of 1980, could not believe his ears. “You can't mean that,” he said, reacting to the lowered bid given by Doug Braunstein, JP Morgan head of investment banking, for Parr's client, legendary investment bank Bear Stearns. Less than eighteen months after trading at an all-time high of $172.61 a share, Bear now had little choice but to accept Morgan's humiliating $2-per-share, Federal Reserve-sanctioned bailout offer. “I'll have to get back to you.” Hanging up the phone, Parr leaned back and gave an exhausted sigh. Rumors had swirled around Bear ever since two of its hedge funds imploded as a result of the subprime housing crisis, but time and again, the scrappy Bear appeared to have weathered the storm. Parr's efforts to find a capital infusion for the bank had resulted in lengthy discussions and marathon due diligence sessions, but one after another, potential investors had backed away, scared off in part by Bear's sizable mortgage holdings at a time when every bank on Wall Street was reducing its positions and taking massive write-downs in the asset class. In the past week, those rumors had reached a fever pitch, with financial analysts openly questioning Bear's ability to continue operations and its clients running for the exits. Now Sunday afternoon, it had already been a long weekend, and it would almost certainly be a long night, as the Fed-backed bailout of Bear would require onerous negotiations before Monday's market open. By morning, the eighty-five-year-old investment bank, which had survived the Great Depression, the savings and loan crisis, and the dot-com implosion, would cease to exist as an independent firm. Pausing briefly before calling CEO Alan Schwartz and the rest of Bear's board, Parr allowed himself a moment of reflection. How had it all happened?

An analysis of the fall of Bear Stearns facilitates an understanding of the difficulties affecting the entire investment banking industry: high leverage, overreliance on short-term financing, excessive risk taking on proprietary trading and asset management desks, and myopic senior management all contributed to the massive losses and loss of confidence. The impact on the global economy was of epic proportions.

By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer's yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing. Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald's and Dunkin' Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks's growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations. But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition—a combination of premium coffee, superior service, and a “coffeehouse experience”—to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition's three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U.S. store closure. Schultz and his team also faced a broader question, one that applied to both their U.S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks's history, well-established value proposition, and domestic and international growth and vision.

The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1. How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to the sustain a brand's core value(s) proposition when innovating for new audiences and customer preferences?