CASE STUDIES



                        CASE STUDIES IN STRATEGIC BRAND MANAGEMENT
CASE STUDY 1
Flying High with the Southwest Airlines Brand

Southwest Airlines, originally called Air Southwest, was founded by Texans Rollin King and Herb Kelleher in 1967.  Southwest started as a commuter carrier with flights between Dallas, Houston and San Antonio, but today it operates in 55 cities across the nation.  Southwest is famous for its cheap fares and no-frills service.  Seats on its plane are all the same class and in flight service offers neither movies nor meals.

Southwest knew from an early stage that it could not differentiate on price alone, because competitors could easily muscle into the market with their own cheaper versions.  To promote customer loyalty, the airline sought to create a unique flying experience for its customers.  Early flights featured Jet Bunnies – flight attendants dressed in hot pants and go-go boots who served beverages known as Love potions and snacks called Love Bites.  Southwest encouraged its pilots and cabin crew members to entertain the passengers with jokes and snappy patter during in flight announcements.  One of the company’s early recruitment bulletins specified that applicants should have a sense of humor.  Even CEO Herb Kelleher got into the act.  On several occasions, Kelleher donned an Elvis Presley costume to meet passengers at the gate, and once on an Easter flight he served drinks and snacks while dressed in a bunny suit.  Another passenger-pleasing feature of southwest flights is the first come first served open seating, whereby passengers are given numbered cards for boarding that reflect the order in which they arrived at the gate.

Southwest’s advertising has always been informational, yet inflected with humor at the same time.  For several years the airline has used as its tag line a clever play on the standard message from a captain telling passengers they are free to move about the planes cabin.  Southwest version which emphasizes its national route coverage, declares, you are now free to move about the country.  Recently ads highlighted Southwest’s low fares with humorous television spots in which a character commits some social blunder, after which a voiceover asks, “ Wanna Get Away?”.

Today, Southwest is the nation’s seventh largest airline and holds the distinction of being the only low-fare airline to achieve long-term success.  By offering a low-cost, convenient, and customer-friendly alternative to major carriers, southwest attracted passengers in droves and, after its first profitable year in 1969, achieved a profitability in each of the 28 years that followed.

i)                   Briefly explain the brand strategy adopted by Southwest airlines?
ii)                 How has south west airlines been able to maintain its leadership position and fight competition?
iii)               What are the various advertising and promotional tools used by this airlines to attract customers?
  
Case Study 2
HARLEY DAVIDSON
Harley Davidson Inc founded in 1903 is the only remaining American motorcycle manufacturer, although there are some new upstart companies.  During the 1950 and 1960 Harley – Davidson had a virtual monopoly on the heavyweight motorcycle market.  Japanese manufacturers entered the market in the 1960s with lightweight motorcycles backed by huge marketing programs that increased the demand for the motorcycles.  These manufacturers include Honda, Suzuki, Yamaha and Kawasaki to name a few.  However these manufacturers have started building bigger bikes that started competing with Harley Davidson. 
Recognizing the potential of this product American Machine and foundry (AMF Inc) purchased Harley Davidson in 1969.  AMF almost tripled production to 75000 units annually over a four year period to meet increased demand.  Unfortunately product quality deteriorated significantly.
More than have the cycles that came from the assembly line had missing parts and the dealers had to fix them to make sales.  Little money was invested in improving design and engineering.  The products leaked oil and vibrated and were in now where near the Japanese models.
In 1975 Vaughn Beals in charge of Harley Davidson and other seniors recognized that it would take years to upgrade the performance and quality of the motorcycles.
They took the help of William G who was known as Willie G the grandson of the co-founder who mixed frequently with bikers and understood the following:
The customers: They really know what they want on their bikes. The kind of instrumentation, the style of bars, the cosmetics of the engine, and the look of the exhaust pipes and so on.  Every little piece of Harley is exposed and it has to look just right.  A tube curve or the shape of a timing case can generate the enthusiasm or be a total turnoff.  It’s almost like being in the fashion business.
1980 AMF sold the company to 13 senior Harley executives in the leveraged buyout on June 16, 1981.  The company was making money by now but the creditors wanted money immediately and the company had to file for bankruptcy by the end of 1985.  However through some intense negotiations, it stayed in business and rebounded to become a highly profitable company.
By 1996 Harley controlled more than 47% of the heavyweight (651cc and larger) motorcycle market, far more than its all time low of 23 percent.  Its products are considered to have bulletproof, reliability because of manufacturing and management changes that resulted in product of excellent quality.  In 2001 Harley sold 215454 motorcycles in USA and 48199 in the rest of the world.  It also sold Bell motorcycles 10943.  It had revenue for 2000 at over $4 trillion and double in net revenue than 1998.  Its net income for 2002 was $840 million compared to $213 million 5 years earlier.  In 2003 it s 100th anniversary product line includes 7 Soft tail models, 7 Sportster models, 5 Dynaglide models and 7 touring models.  In addition it’s VRSCA V-Rod, a new style for $17000. Harley was selling quickly even though it was a departure from the retro look of traditional Harleys.
What kind of consumers owns a Harley?
What accounts for Harley Owners satisfaction and brand loyalty?
What threats do you think Harley-Davidson faces in the next few years?

CASE STUDY 3
CONSUMER DURABLES
A leading consumer durables company has appointed you as the brand manager for its new range of LCD televisions.  You are expected to identify key markets and launch the televisions.  Explain the various factors that you have to consider to launch this range of LCD televisions successfully in the market?  Describe the key external environmental factors that can affect your decision.

CASE STUDY4
BULLET
Although  a raging success in the 1970’s and 80’s Royal Enfield found its sales wilting in the 1990’s. The brand meant different things to different people and unfortunately many of this people who once loved this beastly vehicle started moving to the Japanese bikes which was light weight, excellent mileage and zero maintenance. The dealers of this brand had to close shop and the company was in the verge of closure.  However in early 2000 the big bikes took the craze of the modern youth and Bullet was relaunched with lot of pomp and fare and it is now a great success today. The price is almost double and the customers are standing in long ques to book this vehicle.

a) How did bullet become popular again?
b) What has the brand done to revitalize?
c) What should be its strategy in future?

CASE STUDY 5
Haier the Chinese Brand
Haier the Chinese brand which has created a reputation for itself in a highly competitive US market, operates in 160 countries, has manufacturing plants outside China and manufactures about 80 products.  In 2005, its worldwide sales were 8.5 billion US dollars.  Haier has a strategy different from several other Chinese manufacturers.  It has opted to compete in premium markets to establish its brand rather than making products for other world class brands (like several other Chinese competitors), or competing in low end markets which are price sensitive.  Haier uses speed and differentiation as the basic strategy to provide several unique features to consumers.  It has about 50 percent of the market share in compact sized refrigerators in the US.  Most of these are owned by college students who live in small apartments where space is a constraint.  The Haier refrigerator has two foldable flaps on top which double up as personal computer tables (which the user need not buy separately) and the flaps can be folded back whenever the personal computer is not in use.  It developed a wine storage cabinet in 5 months when compared with the 18 months time required for an established brand.  Priority on consumer needs, internal coordination and a strong focus on being meaningfully different in its offerings are the factors which have catapulted Haier to big success.  The brand has also entered the Indian market recently.

1. As the brand manager of Haier how will you change the image that Chinese products are cheap and of low quality in the Indian market?
2. How can Haier compete with Japanese and Korean brands since they have a better reputation in India?
3. What are the key thrust areas you will concentrate to make Haier successful?

1. Harley Davidson Inc founded in 1903 is the only remaining American motorcycle manufacturer, although there are some new upstart companies.  During the 1950 and 1960 Harley – Davidson had a virtual monopoly on the heavyweight motorcycle market.  Japanese manufacturers entered the market in the 1960s with lightweight motorcycles backed by huge marketing programs that increased the demand for the motorcycles.  These manufacturers include Honda, Suzuki, Yamaha and Kawasaki to name a few.  However these manufacturers have started building bigger bikes that started competing with Harley Davidson. 
Recognizing the potential of this product American Machine and foundry (AMF Inc) purchased Harley Davidson in 1969.  AMF almost tripled production to 75000 units annually over a four year period to meet increased demand.  Unfortunately product quality deteriorated significantly.

More than have the cycles that came from the assembly line had missing parts and the dealers had to fix them to make sales.  Little money was invested in improving design and engineering.  The products leaked oil and vibrated and were in now where near the Japanese models.

In 1975 Vaughn Beals in charge of Harley Davidson and other seniors recognized that it would take years to upgrade the performance and quality of the motorcycles.

They took the help of William G who was known as Willie G the grandson of the co-founder who mixed frequently with bikers and understood the following:

The customers: They really know what they want on their bikes. The kind of instrumentation, the style of bars, the cosmetics of the engine, and the look of the exhaust pipes and so on.  Every little piece of Harley is exposed and it has to look just right.  A tube curve or the shape of a timing case can generate the enthusiasm or be a total turnoff.  It’s almost like being in the fashion business.

1980 AMF sold the company to 13 senior Harley executives in the leveraged buyout on June 16, 1981.  The company was making money by now but the creditors wanted money immediately and the company had to file for bankruptcy by the end of 1985.  However through some intense negotiations, it stayed in business and rebounded to become a highly profitable company.

By 1996 Harley controlled more than 47% of the heavyweight (651cc and larger) motorcycle market, far more than its all time low of 23 percent.  Its products are considered to have bulletproof, reliability because of manufacturing and management changes that resulted in product of excellent quality.  In 2001 Harley sold 215454 motorcycles in USA and 48199 in the rest of the world.  It also sold Bell motorcycles 10943.  It had revenue for 2000 at over $4 trillion and double in net revenue than 1998.  Its net income for 2002 was $840 million compared to $213 million 5 years earlier.  In 2003 it s 100th anniversary product line includes 7 Soft tail models, 7 Sportster models, 5 Dynaglide models and 7 touring models.  In addition it’s VRSCA V-Rod, a new style for $17000. Harley was selling quickly even though it was a departure from the retro look of traditional Harleys.

What kind of consumers owns a Harley?
What accounts for Harley Owners satisfaction and brand loyalty?
What threats do you think Harley-Davidson faces in the next few years?
CASE STUDY:-

1. Harley Davidson Inc founded in 1903 is the only remaining American motorcycle manufacturer, although there are some new upstart companies.  During the 1950 and 1960 Harley – Davidson had a virtual monopoly on the heavyweight motorcycle market.  Japanese manufacturers entered the market in the 1960s with lightweight motorcycles backed by huge marketing programs that increased the demand for the motorcycles.  These manufacturers include Honda, Suzuki, Yamaha and Kawasaki to name a few.  However these manufacturers have started building bigger bikes that started competing with Harley Davidson. 
Recognizing the potential of this product American Machine and foundry (AMF Inc) purchased Harley Davidson in 1969.  AMF almost tripled production to 75000 units annually over a four year period to meet increased demand.  Unfortunately product quality deteriorated significantly.

More than have the cycles that came from the assembly line had missing parts and the dealers had to fix them to make sales.  Little money was invested in improving design and engineering.  The products leaked oil and vibrated and were in now where near the Japanese models.

In 1975 Vaughn Beals in charge of Harley Davidson and other seniors recognized that it would take years to upgrade the performance and quality of the motorcycles.

They took the help of William G who was known as Willie G the grandson of the co-founder who mixed frequently with bikers and understood the following:

The customers: They really know what they want on their bikes. The kind of instrumentation, the style of bars, the cosmetics of the engine, and the look of the exhaust pipes and so on.  Every little piece of Harley is exposed and it has to look just right.  A tube curve or the shape of a timing case can generate the enthusiasm or be a total turnoff.  It’s almost like being in the fashion business.

1980 AMF sold the company to 13 senior Harley executives in the leveraged buyout on June 16, 1981.  The company was making money by now but the creditors wanted money immediately and the company had to file for bankruptcy by the end of 1985.  However through some intense negotiations, it stayed in business and rebounded to become a highly profitable company.

By 1996 Harley controlled more than 47% of the heavyweight (651cc and larger) motorcycle market, far more than its all time low of 23 percent.  Its products are considered to have bulletproof, reliability because of manufacturing and management changes that resulted in product of excellent quality.  In 2001 Harley sold 215454 motorcycles in USA and 48199 in the rest of the world.  It also sold Bell motorcycles 10943.  It had revenue for 2000 at over $4 trillion and double in net revenue than 1998.  Its net income for 2002 was $840 million compared to $213 million 5 years earlier.  In 2003 it s 100th anniversary product line includes 7 Soft tail models, 7 Sportster models, 5 Dynaglide models and 7 touring models.  In addition it’s VRSCA V-Rod, a new style for $17000. Harley was selling quickly even though it was a departure from the retro look of traditional Harleys.

What kind of consumers owns a Harley?
What accounts for Harley Owners satisfaction and brand loyalty?
What threats do you think Harley-Davidson faces in the next few years?
CASE STUDY:-

1. Harley Davidson Inc founded in 1903 is the only remaining American motorcycle manufacturer, although there are some new upstart companies.  During the 1950 and 1960 Harley – Davidson had a virtual monopoly on the heavyweight motorcycle market.  Japanese manufacturers entered the market in the 1960s with lightweight motorcycles backed by huge marketing programs that increased the demand for the motorcycles.  These manufacturers include Honda, Suzuki, Yamaha and Kawasaki to name a few.  However these manufacturers have started building bigger bikes that started competing with Harley Davidson. 
Recognizing the potential of this product American Machine and foundry (AMF Inc) purchased Harley Davidson in 1969.  AMF almost tripled production to 75000 units annually over a four year period to meet increased demand.  Unfortunately product quality deteriorated significantly.

More than have the cycles that came from the assembly line had missing parts and the dealers had to fix them to make sales.  Little money was invested in improving design and engineering.  The products leaked oil and vibrated and were in now where near the Japanese models.

In 1975 Vaughn Beals in charge of Harley Davidson and other seniors recognized that it would take years to upgrade the performance and quality of the motorcycles.

They took the help of William G who was known as Willie G the grandson of the co-founder who mixed frequently with bikers and understood the following:

The customers: They really know what they want on their bikes. The kind of instrumentation, the style of bars, the cosmetics of the engine, and the look of the exhaust pipes and so on.  Every little piece of Harley is exposed and it has to look just right.  A tube curve or the shape of a timing case can generate the enthusiasm or be a total turnoff.  It’s almost like being in the fashion business.

1980 AMF sold the company to 13 senior Harley executives in the leveraged buyout on June 16, 1981.  The company was making money by now but the creditors wanted money immediately and the company had to file for bankruptcy by the end of 1985.  However through some intense negotiations, it stayed in business and rebounded to become a highly profitable company.

By 1996 Harley controlled more than 47% of the heavyweight (651cc and larger) motorcycle market, far more than its all time low of 23 percent.  Its products are considered to have bulletproof, reliability because of manufacturing and management changes that resulted in product of excellent quality.  In 2001 Harley sold 215454 motorcycles in USA and 48199 in the rest of the world.  It also sold Bell motorcycles 10943.  It had revenue for 2000 at over $4 trillion and double in net revenue than 1998.  Its net income for 2002 was $840 million compared to $213 million 5 years earlier.  In 2003 it s 100th anniversary product line includes 7 Soft tail models, 7 Sportster models, 5 Dynaglide models and 7 touring models.  In addition it’s VRSCA V-Rod, a new style for $17000. Harley was selling quickly even though it was a departure from the retro look of traditional Harleys.

What kind of consumers owns a Harley?
What accounts for Harley Owners satisfaction and brand loyalty?
What threats do you think Harley-Davidson faces in the next few years?
1. Harley Davidson Inc founded in 1903 is the only remaining American motorcycle manufacturer, although there are some new upstart companies.  During the 1950 and 1960 Harley – Davidson had a virtual monopoly on the heavyweight motorcycle market.  Japanese manufacturers entered the market in the 1960s with lightweight motorcycles backed by huge marketing programs that increased the demand for the motorcycles.  These manufacturers include Honda, Suzuki, Yamaha and Kawasaki to name a few.  However these manufacturers have started building bigger bikes that started competing with Harley Davidson. 
Recognizing the potential of this product American Machine and foundry (AMF Inc) purchased Harley Davidson in 1969.  AMF almost tripled production to 75000 units annually over a four year period to meet increased demand.  Unfortunately product quality deteriorated significantly.

More than have the cycles that came from the assembly line had missing parts and the dealers had to fix them to make sales.  Little money was invested in improving design and engineering.  The products leaked oil and vibrated and were in now where near the Japanese models.

In 1975 Vaughn Beals in charge of Harley Davidson and other seniors recognized that it would take years to upgrade the performance and quality of the motorcycles.

They took the help of William G who was known as Willie G the grandson of the co-founder who mixed frequently with bikers and understood the following:

The customers: They really know what they want on their bikes. The kind of instrumentation, the style of bars, the cosmetics of the engine, and the look of the exhaust pipes and so on.  Every little piece of Harley is exposed and it has to look just right.  A tube curve or the shape of a timing case can generate the enthusiasm or be a total turnoff.  It’s almost like being in the fashion business.

1980 AMF sold the company to 13 senior Harley executives in the leveraged buyout on June 16, 1981.  The company was making money by now but the creditors wanted money immediately and the company had to file for bankruptcy by the end of 1985.  However through some intense negotiations, it stayed in business and rebounded to become a highly profitable company.

By 1996 Harley controlled more than 47% of the heavyweight (651cc and larger) motorcycle market, far more than its all time low of 23 percent.  Its products are considered to have bulletproof, reliability because of manufacturing and management changes that resulted in product of excellent quality.  In 2001 Harley sold 215454 motorcycles in USA and 48199 in the rest of the world.  It also sold Bell motorcycles 10943.  It had revenue for 2000 at over $4 trillion and double in net revenue than 1998.  Its net income for 2002 was $840 million compared to $213 million 5 years earlier.  In 2003 it s 100th anniversary product line includes 7 Soft tail models, 7 Sportster models, 5 Dynaglide models and 7 touring models.  In addition it’s VRSCA V-Rod, a new style for $17000. Harley was selling quickly even though it was a departure from the retro look of traditional Harleys.

What kind of consumers owns a Harley?
What accounts for Harley Owners satisfaction and brand loyalty?
What threats do you think Harley-Davidson faces in the next few years?

1. Harley Davidson Inc founded in 1903 is the only remaining American motorcycle manufacturer, although there are some new upstart companies.  During the 1950 and 1960 Harley – Davidson had a virtual monopoly on the heavyweight motorcycle market.  Japanese manufacturers entered the market in the 1960s with lightweight motorcycles backed by huge marketing programs that increased the demand for the motorcycles.  These manufacturers include Honda, Suzuki, Yamaha and Kawasaki to name a few.  However these manufacturers have started building bigger bikes that started competing with Harley Davidson. 
Recognizing the potential of this product American Machine and foundry (AMF Inc) purchased Harley Davidson in 1969.  AMF almost tripled production to 75000 units annually over a four year period to meet increased demand.  Unfortunately product quality deteriorated significantly.

More than have the cycles that came from the assembly line had missing parts and the dealers had to fix them to make sales.  Little money was invested in improving design and engineering.  The products leaked oil and vibrated and were in now where near the Japanese models.

In 1975 Vaughn Beals in charge of Harley Davidson and other seniors recognized that it would take years to upgrade the performance and quality of the motorcycles.

They took the help of William G who was known as Willie G the grandson of the co-founder who mixed frequently with bikers and understood the following:

The customers: They really know what they want on their bikes. The kind of instrumentation, the style of bars, the cosmetics of the engine, and the look of the exhaust pipes and so on.  Every little piece of Harley is exposed and it has to look just right.  A tube curve or the shape of a timing case can generate the enthusiasm or be a total turnoff.  It’s almost like being in the fashion business.

1980 AMF sold the company to 13 senior Harley executives in the leveraged buyout on June 16, 1981.  The company was making money by now but the creditors wanted money immediately and the company had to file for bankruptcy by the end of 1985.  However through some intense negotiations, it stayed in business and rebounded to become a highly profitable company.

By 1996 Harley controlled more than 47% of the heavyweight (651cc and larger) motorcycle market, far more than its all time low of 23 percent.  Its products are considered to have bulletproof, reliability because of manufacturing and management changes that resulted in product of excellent quality.  In 2001 Harley sold 215454 motorcycles in USA and 48199 in the rest of the world.  It also sold Bell motorcycles 10943.  It had revenue for 2000 at over $4 trillion and double in net revenue than 1998.  Its net income for 2002 was $840 million compared to $213 million 5 years earlier.  In 2003 it s 100th anniversary product line includes 7 Soft tail models, 7 Sportster models, 5 Dynaglide models and 7 touring models.  In addition it’s VRSCA V-Rod, a new style for $17000. Harley was selling quickly even though it was a departure from the retro look of traditional Harleys.

What kind of consumers owns a Harley?
What accounts for Harley Owners satisfaction and brand loyalty?
What threats do you think Harley-Davidson faces in the next few years?


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