Alice Tybout

Harold T. Martin Professor of Marketing at Kellogg School of Management

Biography

Kellogg School of Management

Alice M. Tybout is the Harold T. Martin Professor of Marketing. She served as chairperson of the Marketing Department 2004-2006. Professor Tybout teaches in the MBA and Executive Masters Programs. In addition, she is the academic director and faculty for the Kellogg on Consumer Marketing Strategy Program and the Kellogg on Branding Program at Northwestern's executive education facility, the Allen Center. She also has taught at the University of Chicago, INSEAD in Fontainebleau, France and at Chulalongkorn University in Bangkok, Thailand. Professor Tybout received the Sidney J. Levy Award for Teaching Excellence in 1996, the Chairpersons' Award for Outstanding Teaching in the Core in 1999 and in 2012, and the Outstanding Alumni Professor of the Year in 2004.

Professor Tybout conducts research related to how individuals process, organize, and utilize information to make judgments and choices. Her most recent writings address these issues in the context of scandal management. She has published numerous articles in scholarly journals, including the Journal of Consumer Research, the Journal of Marketing Research, the Journal of Consumer Psychology, the Journal of Marketing, and the Journal of Personality and Social Psychology. In addition, she has published articles in Harvard Business Review, and is the co-editor of three books; Perspectives on the Affective and Cognitive Effects of Advertising, Kellogg on Branding, Kellogg on Marketing, Second Edition.

Professor Tybout has been a member of the Association for Consumer Research since 1972 where she has served as the Treasurer (1983) and President (1994) and is an ACR Fellow (2016). She is also a former Trustee of the Marketing Science Institute (1991-1998) and has served on the Board of Directors of the American Marketing Association (1997-2000). In addition to her academic activities, Professor Tybout does executive training and consulting. Her recent clients include Coca-Cola, Ericsson, PepsiCo, Pfizer, and Takeda. She also serves on the Board of Directors (2000-present) of RHR International.

Professor Tybout received her B.S. in Business Administration and her M.A. in Consumer Behavior from Ohio State University and her Ph.D. in Marketing from Northwestern University.

Areas of Expertise Brand Management
Consumer Behavior
Consumer Decision-Making

Education PhD, 1975, Marketing, Northwestern University

MA, 1972, Consumer Behavior, Ohio State University

BA, 1970, Business Administration, Ohio State University

Academic Positions Harold T. Martin Professor of Marketing, Kellogg School of Management, Northwestern University, 1988-present

Chairman of Marketing Department, Kellogg School of Management, Northwestern University, 2004-2006

Professor of Marketing, Kellogg School of Management, Northwestern University, 1985-1988

Associate Professor of Marketing, Kellogg School of Management, Northwestern University, 1980-1985

Assistant Professor of Marketing and Transportation, Kellogg School of Management, Northwestern University, 1975-1980

Instructor, Graduate School of Business, University of Chicago, 1974-1975

Honors and Awards ACR Fellow in Consumer Behavior Award, Lifetime Achievement Award for Consumer Research

Chairs' Award for Outstanding Teaching in a Core Course

Kellogg Alumni Professor of the Year Award, Kellogg School of Management, 2004

Outstanding Alumni Professor of the Year, Kellogg Graduate School of Management, 2004

Chairs' Core Course Teaching Award, Kellogg School of Management, 1998-1999

Sidney J. Levy Teaching Award, Kellogg School of Management, 1995-1996

Editorial Positions Editorial Board, Journal of Consumer Research, 1996-2005

Editorial Board, Journal of Marketing Research, 1981-1990

Editorial Board, International Journal of Marketing Research, 2003-2007

Editorial Board, Journal of Consumer Psychology, 1993-2002

Editorial Board, Journal of Marketing, 1978-1981

Education Academic Positions Honors and Awards Editorial Positions

Courses Taught

Read about executive education

Cases

Tybout, Alice and Natalie Fahey. 2011. Positioning the Tata Nano (A). Case 5-311-506(A) (KEL602).

The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world’s cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen.

Tybout, Alice and Natalie Fahey. 2011. Positioning the Tata Nano (B). Case 5-311-506(B) (KEL603).

The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world’s cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen.

Tybout, Alice. 2017. Lululemon Athletica. Case 5-216-251.

The case traces the development of Lululemon Athletica (Lulu) from founder Chip Wilson's first post-yoga euphoria in 1997 through the sale of all his shares in 2015. Officially founded in 1998, Lulu was built on the foundation of its "miracle" figure-enhancing yoga pants made from a proprietary stretch fiber. The case outlines Wilson's early experience in technical performance wear, which gave him the expertise needed to launch the Lululemon brand with its premium-priced, fashion-designed product line targeted at upscale women. The case also highlights the retailing and promotion approach that drove Lulu's first decade of success. The snapshot of how the Lulu brand cult was born and diffused provides the backdrop for assessing whether the brand has already hit its peak or whether it can sustain the explosive growth that effectively created the athleisure category. To aid in this determination, the case presents two competitors as comparative foils (Under Armour and Athleta) to contextualize Lulu's growth prospects.

The Lululemon case highlights the importance of the competitive frame of reference when positioning a brand and describes how this may differ for the three competitors. The case also allows for a discussion of the challenges of maintaining the congruence of a retail brand with a diverse product line. This struggle is unique to retailers who must fit ever-varied product assortments (not just a single product line) under the umbrella of a single brand proposition, and is particularly relevant to vertically integrated brands such as Lululemon.

Hennessy, Julie and Alice Tybout. 2004. TiVo. Case 5-104-024 (KEL132).

In 1999 TiVo was preparing to launch its digital video recorder (DVR) in the United States. The company’s goal was ambitious: it hoped to revolutionize how Americans watched television and to become a central player in the emerging interactive TV industry.

Although it had a technological advantage, TiVo faced one competitor (ReplayTV) and potential entrants such as Microsoft, so its success was far from guaranteed. Evidence suggested a bright future for the company, however; the concept had attracted $240 million in venture capital, and market research indicated a uniquely high level of consumer interest.

TiVo needed to capture the first-mover advantage and build its sales and brand as quickly as possible to support the company’s IPO, which was planned to take place within eighteen to twenty-four months. TiVo’s positioning at launch would play a key role in determining its success.

Tybout, Alice and Kyle Ragsdale. 2004. ThoughtWorks (B). Case 5-204-269(B) (KEL114).

Before finalizing their positioning strategy, the company undertook qualitative marketing research to test their assumptions about why companies chose ThoughtWorks. The findings of this research prompted them to rethink their positioning strategy. Students are asked to revise the positioning strategy they developed on the basis of the (A) case, taking into account the findings from the marketing research.

Tybout, Alice, Tania Martino and Lauren Martino. 2012. Cafe Media: Creating a Community for Contemporary Acculturated Latinos. Case 5-111-002.

Founded by Julián Posada in 2008, Café Media was a Chicago-based media company targeting Latinos. The company vision was to create a modern-day community in which acculturated Latinos could come together and explore the issues shaping and defining the contemporary Latino lifestyle.

As the company neared the end of its second year in operation, Posada reflected on its annual revenues. The vast majority of revenue came from the sale of advertising space in the flagship platform, Café Magazine. Events sponsored by the company, which increased awareness of the magazine and generated subscribers for the e-newsletter, were profitable and well attended. However, the Café Digital properties (including an online version of the magazine and an e-newsletter) were a drain on cash flow—though investors believed these platforms were critical to the long-term success of the company. How could Posada balance the need for short-term revenue growth with the long-term goal of building a strong brand?

Hennessy, JulieAlice Tybout and Jill Carter. 2004. Maybelline Inc.: About Face. Case 5-104-043 (KEL112).

Maybelline is the world’s leading mass cosmetic company, with tremendous success and commanding market share, particularly in the “eye make-up” category. But Maybelline also acknowledges a weakness in the strategic “face” segment, most notably in the profitable "foundations" product lines. This case approaches the challenge of successfully growing this important category through looking at every aspect a company would need to make this move, including: consumer marketing strategy; consumer behavior and purchasing patterns; demographic analysis; segmentation and targeting; product management; distribution channels; pricing; advertising; and understanding the competitive environment.

Tybout, AliceJulie Hennessy, Natalie Fahey and Charlotte Snyder. 2013. The Case of Synthroid (A): Marketing a Drug Coming Off Patent. Case 5-312-506(A) (KEL728).

The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment.

Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid’s owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug’s unit volume, revenue, and/or profit in these difficult circumstances.

The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott’s marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.

Spanish translation available.

Tybout, Alice and Natalie Fahey. 2012. Marketing the Nissan Micra and Tata Nano Using Social Media. Case 5-412-752 (KEL774).

The case explores the similarities and differences between social media campaigns launched by Nissan and by Tata Motors to stimulate sales for models of their cars in India. The Nissan campaign allowed consumers to compete to star with Ranbir Kapoor, a Bollywood star and spokesman for the Nissan Micra, in a short film featuring the Micra as the hero. The Tata campaign launched India’s first social streaming show, in which select teams of consumers participated in an Amazing Race-style road trip competition in different regions of the country. Both campaigns made extensive use of Facebook. Students are tasked with evaluating the two campaigns in terms of their fit with the communication objectives of each company and their effectiveness on a variety of metrics. The case includes links to advertisements and other video material. Although the case is written to be used independently, it also would work well in combination with the "Positioning the Tata Nano (A) and (B)" cases.

Tybout, Alice. 2007. Trend Micro: Responding to a Service Failure (A). Case 5-107-015(A) (KEL274).

In the (A) case, Trend Micro, an antivirus and Internet content security software provider, accidentally releases a flawed pattern file update that disables users’ computers. The primary impact is on users in Japan where 150,000 customers are affected. As the media press for answers and the stock price plummets, Eva Chen (CEO) and Akihiko Omikawa, president of Trend Micro Japan, must decide how to respond. In the (B) case, the company’s response and subsequent recovery are described. The (A) case allows students to consider a range of crisis management options, including apologizing, sharing information, and compensating harmed customers. Typically, students recommend a less comprehensive and aggressive response than the one Trend Micro actually took (described in the (B) case). The case allows the instructor to illustrate the role of corporate culture in determining a company’s response to a crisis. Trend Micro’s strong customer-orientation and collaborative culture guided its response and led to a full recovery in a short period of time.

Tybout, Alice, Patrick Bennett and Brie Koenigs. 2008. Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market. Case 5-108-001 (KEL357).

In 2005, a wine snob in the critically acclaimed movie Sideways denounced merlot. Subsequently, sales of merlot, including sales for Terlato’s Rutherford Hill merlot, declined significantly. Students are asked to evaluate three strategies—rebranding, cutting price, and launching television advertising—that Terlato is considering to reverse this decline.

The learning objective of the case is for students to explore the challenge of managing a brand when external factors cause a decline in category demand. They also explore the role of pricing and advertising in managing a small luxury brand.

The case should be used with Student Supplement: Terlato Wines International: Background Note on the U.S. Wine Market and Terlato Wines International, Case #5-108-002.

Tybout, Alice. 2007. Trend Micro: Responding to a Service Failure (B). Case 5-107-015(B) (KEL275).

In the (A) case, Trend Micro, an antivirus and Internet content security software provider, accidentally releases a flawed pattern file update that disables users’ computers. The primary impact is on users in Japan where 150,000 customers are affected. As the media press for answers and the stock price plummets, Eva Chen (CEO) and Akihiko Omikawa, president of Trend Micro Japan, must decide how to respond. In the (B) case, the company’s response and subsequent recovery are described. The (A) case allows students to consider a range of crisis management options, including apologizing, sharing information, and compensating harmed customers. Typically, students recommend a less comprehensive and aggressive response than the one Trend Micro actually took (described in the (B) case). The case allows the instructor to illustrate the role of corporate culture in determining a company’s response to a crisis. Trend Micro’s strong customer-orientation and collaborative culture guided its response and led to a full recovery in a short period of time.

Tybout, Alice and Kyle Ragsdale. 2004. ThoughtWorks (A). Case 5-204-269(A) (KEL113).

ThoughtWorks, a medium-sized IT systems integrator, was growing quickly but identified “lack of clear positioning around which to build a brand” as the biggest impediment to continued growth. The company had identified features that they believed differentiated them from their competitors and was considering alternative segments to target. Students are asked to choose a target and develop a positioning statement for that target. They are also asked to identify the assumptions underlying their recommended positioning strategy and suggest how market research could help establish the validity of those assumptions.

Tybout, Alice, Patrick Bennett and Brie Koenigs. 2008. Terlato Branding Strategy. Case 5-108-004.

Historically, Terlato Wines International has employed a “house of brands” strategy, whereby the wines it produces and imports are marketed under distinct brand names with minimal mention of the company name. At issue is whether the Terlato name should play a more prominent role in branding.

The case allows the instructor to illustrate the tradeoffs in choosing between a “house of brands” and “branded house” strategy with a contemporary example. It may be used in combination with Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market, Case #5-108-001, and Student Supplement: Background Note on the U.S. Wine Market and Terlato Wines International, Case #5-108-002.

Tybout, Alice. 2007. Target Stores: Strategic Brand Alliance Exercise. Case 5-407-750 (KEL314).

This exercise asks students to develop criteria that Target Stores should use in evaluating strategic brand alliances to support its positioning as a store where you can “Expect More. Pay Less.” Students are then charged with proposing a new strategic partner for Target that meets the criteria they identify. Background information about the Target “guest” and past strategic alliance is provided.

Learning Objective: The case is designed to help students appreciate how brand positioning both guides and is affected by a firm’s strategic partners.

Hennessy, JulieAlice Tybout, Natalie Fahey and Charlotte Snyder. 2013. The Case of Synthroid (B): Marketing a Drug Coming Off Patent. Case 5-312-506(A) (KEL729).

The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment.

Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid’s owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug’s unit volume, revenue, and/or profit in these difficult circumstances.

The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott’s marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.

Spanish translation available.

Tybout, Alice and Natalie Fahey. 2011. Positioning the Tata Nano (A). Case 5-311-506(A) (KEL602).

The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world’s cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen.

Tybout, Alice and Natalie Fahey. 2011. Positioning the Tata Nano (B). Case 5-311-506(B) (KEL603).

The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world’s cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen.

Tybout, Alice. 2017. Lululemon Athletica. Case 5-216-251.

The case traces the development of Lululemon Athletica (Lulu) from founder Chip Wilson's first post-yoga euphoria in 1997 through the sale of all his shares in 2015. Officially founded in 1998, Lulu was built on the foundation of its "miracle" figure-enhancing yoga pants made from a proprietary stretch fiber. The case outlines Wilson's early experience in technical performance wear, which gave him the expertise needed to launch the Lululemon brand with its premium-priced, fashion-designed product line targeted at upscale women. The case also highlights the retailing and promotion approach that drove Lulu's first decade of success. The snapshot of how the Lulu brand cult was born and diffused provides the backdrop for assessing whether the brand has already hit its peak or whether it can sustain the explosive growth that effectively created the athleisure category. To aid in this determination, the case presents two competitors as comparative foils (Under Armour and Athleta) to contextualize Lulu's growth prospects.

The Lululemon case highlights the importance of the competitive frame of reference when positioning a brand and describes how this may differ for the three competitors. The case also allows for a discussion of the challenges of maintaining the congruence of a retail brand with a diverse product line. This struggle is unique to retailers who must fit ever-varied product assortments (not just a single product line) under the umbrella of a single brand proposition, and is particularly relevant to vertically integrated brands such as Lululemon.

Hennessy, Julie and Alice Tybout. 2004. TiVo. Case 5-104-024 (KEL132).

In 1999 TiVo was preparing to launch its digital video recorder (DVR) in the United States. The company’s goal was ambitious: it hoped to revolutionize how Americans watched television and to become a central player in the emerging interactive TV industry.

Although it had a technological advantage, TiVo faced one competitor (ReplayTV) and potential entrants such as Microsoft, so its success was far from guaranteed. Evidence suggested a bright future for the company, however; the concept had attracted $240 million in venture capital, and market research indicated a uniquely high level of consumer interest.

TiVo needed to capture the first-mover advantage and build its sales and brand as quickly as possible to support the company’s IPO, which was planned to take place within eighteen to twenty-four months. TiVo’s positioning at launch would play a key role in determining its success.

Tybout, Alice and Kyle Ragsdale. 2004. ThoughtWorks (B). Case 5-204-269(B) (KEL114).

Before finalizing their positioning strategy, the company undertook qualitative marketing research to test their assumptions about why companies chose ThoughtWorks. The findings of this research prompted them to rethink their positioning strategy. Students are asked to revise the positioning strategy they developed on the basis of the (A) case, taking into account the findings from the marketing research.

Tybout, Alice, Tania Martino and Lauren Martino. 2012. Cafe Media: Creating a Community for Contemporary Acculturated Latinos. Case 5-111-002.

Founded by Julián Posada in 2008, Café Media was a Chicago-based media company targeting Latinos. The company vision was to create a modern-day community in which acculturated Latinos could come together and explore the issues shaping and defining the contemporary Latino lifestyle.

As the company neared the end of its second year in operation, Posada reflected on its annual revenues. The vast majority of revenue came from the sale of advertising space in the flagship platform, Café Magazine. Events sponsored by the company, which increased awareness of the magazine and generated subscribers for the e-newsletter, were profitable and well attended. However, the Café Digital properties (including an online version of the magazine and an e-newsletter) were a drain on cash flow—though investors believed these platforms were critical to the long-term success of the company. How could Posada balance the need for short-term revenue growth with the long-term goal of building a strong brand?

Hennessy, Julie, Alice Tybout and Jill Carter. 2004. Maybelline Inc.: About Face. Case 5-104-043 (KEL112).

Maybelline is the world’s leading mass cosmetic company, with tremendous success and commanding market share, particularly in the “eye make-up” category. But Maybelline also acknowledges a weakness in the strategic “face” segment, most notably in the profitable "foundations" product lines. This case approaches the challenge of successfully growing this important category through looking at every aspect a company would need to make this move, including: consumer marketing strategy; consumer behavior and purchasing patterns; demographic analysis; segmentation and targeting; product management; distribution channels; pricing; advertising; and understanding the competitive environment.

Tybout, Alice, Julie Hennessy, Natalie Fahey and Charlotte Snyder. 2013. The Case of Synthroid (A): Marketing a Drug Coming Off Patent. Case 5-312-506(A) (KEL728).

The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment.

Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid’s owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug’s unit volume, revenue, and/or profit in these difficult circumstances.

The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott’s marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.

Spanish translation available.

Tybout, Alice and Natalie Fahey. 2012. Marketing the Nissan Micra and Tata Nano Using Social Media. Case 5-412-752 (KEL774).

The case explores the similarities and differences between social media campaigns launched by Nissan and by Tata Motors to stimulate sales for models of their cars in India. The Nissan campaign allowed consumers to compete to star with Ranbir Kapoor, a Bollywood star and spokesman for the Nissan Micra, in a short film featuring the Micra as the hero. The Tata campaign launched India’s first social streaming show, in which select teams of consumers participated in an Amazing Race-style road trip competition in different regions of the country. Both campaigns made extensive use of Facebook. Students are tasked with evaluating the two campaigns in terms of their fit with the communication objectives of each company and their effectiveness on a variety of metrics. The case includes links to advertisements and other video material. Although the case is written to be used independently, it also would work well in combination with the "Positioning the Tata Nano (A) and (B)" cases.

Tybout, Alice. 2007. Trend Micro: Responding to a Service Failure (A). Case 5-107-015(A) (KEL274).

In the (A) case, Trend Micro, an antivirus and Internet content security software provider, accidentally releases a flawed pattern file update that disables users’ computers. The primary impact is on users in Japan where 150,000 customers are affected. As the media press for answers and the stock price plummets, Eva Chen (CEO) and Akihiko Omikawa, president of Trend Micro Japan, must decide how to respond. In the (B) case, the company’s response and subsequent recovery are described. The (A) case allows students to consider a range of crisis management options, including apologizing, sharing information, and compensating harmed customers. Typically, students recommend a less comprehensive and aggressive response than the one Trend Micro actually took (described in the (B) case). The case allows the instructor to illustrate the role of corporate culture in determining a company’s response to a crisis. Trend Micro’s strong customer-orientation and collaborative culture guided its response and led to a full recovery in a short period of time.

Tybout, Alice, Patrick Bennett and Brie Koenigs. 2008. Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market. Case 5-108-001 (KEL357).

In 2005, a wine snob in the critically acclaimed movie Sideways denounced merlot. Subsequently, sales of merlot, including sales for Terlato’s Rutherford Hill merlot, declined significantly. Students are asked to evaluate three strategies—rebranding, cutting price, and launching television advertising—that Terlato is considering to reverse this decline.

The learning objective of the case is for students to explore the challenge of managing a brand when external factors cause a decline in category demand. They also explore the role of pricing and advertising in managing a small luxury brand.

The case should be used with Student Supplement: Terlato Wines International: Background Note on the U.S. Wine Market and Terlato Wines International, Case #5-108-002.

Tybout, Alice. 2007. Trend Micro: Responding to a Service Failure (B). Case 5-107-015(B) (KEL275).

In the (A) case, Trend Micro, an antivirus and Internet content security software provider, accidentally releases a flawed pattern file update that disables users’ computers. The primary impact is on users in Japan where 150,000 customers are affected. As the media press for answers and the stock price plummets, Eva Chen (CEO) and Akihiko Omikawa, president of Trend Micro Japan, must decide how to respond. In the (B) case, the company’s response and subsequent recovery are described. The (A) case allows students to consider a range of crisis management options, including apologizing, sharing information, and compensating harmed customers. Typically, students recommend a less comprehensive and aggressive response than the one Trend Micro actually took (described in the (B) case). The case allows the instructor to illustrate the role of corporate culture in determining a company’s response to a crisis. Trend Micro’s strong customer-orientation and collaborative culture guided its response and led to a full recovery in a short period of time.

Tybout, Alice and Kyle Ragsdale. 2004. ThoughtWorks (A). Case 5-204-269(A) (KEL113).

ThoughtWorks, a medium-sized IT systems integrator, was growing quickly but identified “lack of clear positioning around which to build a brand” as the biggest impediment to continued growth. The company had identified features that they believed differentiated them from their competitors and was considering alternative segments to target. Students are asked to choose a target and develop a positioning statement for that target. They are also asked to identify the assumptions underlying their recommended positioning strategy and suggest how market research could help establish the validity of those assumptions.

Tybout, Alice, Patrick Bennett and Brie Koenigs. 2008. Terlato Branding Strategy. Case 5-108-004.

Historically, Terlato Wines International has employed a “house of brands” strategy, whereby the wines it produces and imports are marketed under distinct brand names with minimal mention of the company name. At issue is whether the Terlato name should play a more prominent role in branding.

The case allows the instructor to illustrate the tradeoffs in choosing between a “house of brands” and “branded house” strategy with a contemporary example. It may be used in combination with Terlato Wines International: Managing Rutherford Hill Merlot in a Post-Sideways Market, Case #5-108-001, and Student Supplement: Background Note on the U.S. Wine Market and Terlato Wines International, Case #5-108-002.

Tybout, Alice. 2007. Target Stores: Strategic Brand Alliance Exercise. Case 5-407-750 (KEL314).

This exercise asks students to develop criteria that Target Stores should use in evaluating strategic brand alliances to support its positioning as a store where you can “Expect More. Pay Less.” Students are then charged with proposing a new strategic partner for Target that meets the criteria they identify. Background information about the Target “guest” and past strategic alliance is provided.

Learning Objective: The case is designed to help students appreciate how brand positioning both guides and is affected by a firm’s strategic partners.

Hennessy, Julie, Alice Tybout, Natalie Fahey and Charlotte Snyder. 2013. The Case of Synthroid (B): Marketing a Drug Coming Off Patent. Case 5-312-506(A) (KEL729).

The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment.

Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid’s owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug’s unit volume, revenue, and/or profit in these difficult circumstances.

The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott’s marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.

Spanish translation available.

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