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Target Corporation is concerned that the company might be left out of one of its most lucrative and attractive product categories, video games and game players, as these products increasingly migrate to digital distribution models. What steps should the company take to maintain its relevance and build sustainable competitive advantage as these trends play out? What are the implications for the company's multi-channel online and offline format portfolio going forward?

Students will develop a keen understanding of the challenges faced by contemporary retailers as consumer needs change, new product innovations emerge, market structures evolve, and format pressures escalate.

In 2003, ITC responded to the high level of obsolete inventory by shifting risk from finished products to manufacturing and raw materials. This required that their supply chain be much more flexible and responsive than it was in the past. By 2006, changes in the supply chain that included moving manufacturing in-house improved flexibility and responsiveness. Obsolete inventory was significantly reduced and the company was much better at matching supply and demand. Cost, however, continued to be higher than that at third parties. The company had to decide on the appropriate tradeoff between cost and responsiveness when structuring its supply chain.

The case illustrates how Wills has changed its supply chain to become more flexible and responsive. This change, however, has come at a cost. The case requires the students to analyze the tradeoff between cost and responsiveness/flexibility to decide on an appropriate level of flexibility/responsiveness. The case also requires the student to understand the relative value of increased flexibility versus increased responsiveness.

Sondologics, a manufacturer of video, audio, and gaming accessories products, was experiencing pricing and distribution problems in its channels. Numerous retailers were complaining about unfair price competition from unauthorized retailers, i.e., gray marketers, on standalone websites or Amazon's Marketplace, offering discounts of up to 30% off list price.

The company estimated that about 10% of its retail volume in the United States was being generated by unauthorized retailers. Compounding the problem, gray marketers and authorized retailers alike were selling at below-list prices, which violated the Sondologics MAP (minimum advertised pricing) policy.

Sondologics was considering numerous initiatives to address the MAP and gray-market problems, including retaining a third-party service to monitor pricing and distribution in the channel. Students are asked to develop recommendations that would promote sales while protecting the name-brand image and price points of Sondologics' products.

In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage products would fit into the Constellation portfolio of alcohol beverage brands, and the opportunity to purchase Mondavi for a highly favorable price was quite possible due to recent management turmoil at that company. However, should it be purchased, strategic and operational changes would be necessary in order to fully achieve Mondavi's potential value. In making a decision, students need to consider the attractiveness of the wine industry, its changing structure, its share of the overall market for beverages, and rival firms' strategies. As rival bidders may emerge for Mondavi's brands, Constellation must offer a price that demonstrates its serious intent to acquire Mondavi.

The case is written based on publicly available data from primary sources such as the company’s annual reports, company website and the company’s presentations, as well as from secondary sources comprising newspaper articles, research papers, research magazines, magazine articles, industry reports, research reports, etc. as indicated in the references. The company’s financials and peer data are sourced from the Thomson Reuters Eikon database.

The case examines the financial position of Macy’s, Inc., America’s largest and one of the oldest premier departmental stores, with a consolidated annual turnover of US$18,097m in the fiscal year 2020/2021 (FY, 2021). Over the previous few years, the company had been struggling with decreasing market share and profitability mainly due to increasing competition from online retailers and deep discounters, which was affecting the company’s share price. With the appointment of a new chief executive officer (CEO) in fiscal year (FY) 2017, Macy’s, Inc. undertook several changes to revive its financial health and improve its market share. However, it still registered heavy losses of US$3,944m in the FY 2020/2021, the company’s first time in the past decade. With many retailers filing for bankruptcy, was there more that Macy’s could do to improve the company’s position and regain lost investor confidence? Will its entry into emerging markets play a crucial role in its turnaround?

The case can be used in undergraduate and postgraduate courses such as accounting for managers, financial statement analysis, management accounting, introduction to accounting and advanced financial statement analysis. The case can also be effectively used to understand the primary fundamental analysis of the company that involves understanding the company’s positioning and strengths, weaknesses, opportunities and threats analysis. The case would also help business management and entrepreneurship students to get a preliminary idea about the change management process. Finally, the case can be used to familiarize students with using Microsoft Excel to build financial analysis worksheets.

Teaching notes are available for educators only.

The case is written based on publicly available data from primary sources like the company’s annual reports and presentations and from secondary sources, as indicated in the references.

Barnes & Noble Inc. (B&N), one of the oldest and largest American retail booksellers founded in 1917, was facing a grim business situation underpinned by a fall in demand, a change in consumer preference and stiff competition. After almost a century of being in the business, B&N was experiencing a fall in market share and weak stock market performance. In 2019, the company was sold to Elliot Advisors – a hedge fund – for US$638m. With the appointment of new chief executive officer (CEO) James Daunt in August 2019, a man known for the turnaround of similar businesses, B&N expected its business’s revival and reorganization strategy to turn profitable. Its long-term strategy of beating competitors with its offerings’ sheer volume and low prices was no longer viable. The turmoil was compounded by top management crises with the repeated changes and ousting of several CEOs in a short span, alongside the COVID-19 pandemic and subsequent lockdowns in 2020 and 2021. Daunt was considering how to overcome the crisis and act fast to reposition the company and regain the loyalty of its customers. Was there more that the company could do to improve the company’s position and restore profitability?

The case can be used in strategic management and entrepreneurship classes at undergraduate and postgraduate levels. The case can be used in an investment analysis and management course to teach students the industry analysis technique using Porter’s five forces model.

The senior management team at Leclerc, one of the largest retailers in France, is considering how best to maintain growth in the highly regulated French retail industry. Strict limits on pricing and store construction will significantly limit Leclerc's flexibility; many of the traditional growth levers cannot be used. These regulations also have a major impact on competition. The executives at Leclerc must identify the optimal growth plan and then consider whether it will deliver the desired growth.

The case can be used to examine three areas: growth strategy for established businesses, non-market strategy, and marketing planning. It provides an interesting look at the French retail industry and highlights the role of government regulations in shaping the competitive playing field.

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.

The authors analyzed data and information mainly from the company’s annual reports and the books written by the CEO.

How and when can a “value” brand upscale its brand image? In the wake of the financial crisis of 2007–2008, UNIQLO – Japan’s street fashion brand – considered introducing a new brand collaboration. They needed to capture the attention of younger, more fashionable consumers. However, people were tightening their spending as they faced uncertainties related to their jobs and wealth. Even though UNIQLO had had a steady growth in sales for the previous 24 years, it was questionable whether it was strategically a good time to launch a premium brand collaboration. And if so, who was the right partner? High-end designer Jil Sander, fashionable New York-based Theory or emerging French “casual luxury” brand Comptoir des Cotonniers?

This case is about the challenges faced by a low-priced brand to collaborate with a high-end brand to enhance the brand image. It explores the important elements to take into consideration when evaluating launching collaboration using the high-end brand’s name. The students will learn how to examine the risks and benefits of creating a new image for the core brand. If the students had learnt branding or brand extension before, this case can be used to teach how consumer’s perception affects brand extension and the target market’s impact on pricing and distribution strategies. It can be used for a marketing course at the MBA level to explore the concepts in a growing company’s brand image or an undergraduate specialized course in brand management or marketing management. The students also learn how the fashion industry’s supply chain management works to adapt to rapidly changing fashion trends.

Launched in 2005, Aava natural mineral water is one of the key brands in the natural mineral water market in India. It had sales of over Rs. 15 crore (150 million) in 2012 and it is the second largest brand and a volume leader in the natural mineral water category. The case discusses the dilemma faced by its Managing Director and his team in light of the emerging competition. The company needs to take important decisions related to customer segment selection, product mix and introduction of new product offerings.