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Prize winner
Subject category: Marketing
Authors: John Fahy (Kemmy Business School, University of Limerick)
Published in: 2002
Length: 26 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.

Abstract

Mitsubishi Electric Ireland Ltd, (MEU-IR) is the Irish subsidiary of Mitsubishi Electric Europe. It has long been a market leader in Ireland in the CTV/VCR sector so when the Mitsubishi Corporation decided to exit this business, it could have dealt a potentially fatal blow to the Irish subsidiary. A quick and effective strategic response was necessary. MEU-IR decided to launch a sub-brand called Black Diamond featuring products manufactured by Vestel. The launch was a tremendous success. Despite the negative publicity surrounding Mitsubishi''s exit from the business, the Irish subsidiary not only held their leadership position, but actually grew their share of the market in Ireland. The case can be used to achieve a number of objectives, to show how external factors can very suddenly change a company''s competitive situation and potentially undo much of the good work that management may have already done. The teaching objectives include: (1) to try to understand the criteria underpinning a successful brand launch; (2) to demonstrate the growing power of retailers in the consumer products area and how this retailer power can have important effects all the way up the supply chain; and (3) to provide students with the practical challenge of a brand extension decision. This case contains colour exhibits.
Location:
Size:
60 employees
Other setting(s):
1999-2000

About

Abstract

Mitsubishi Electric Ireland Ltd, (MEU-IR) is the Irish subsidiary of Mitsubishi Electric Europe. It has long been a market leader in Ireland in the CTV/VCR sector so when the Mitsubishi Corporation decided to exit this business, it could have dealt a potentially fatal blow to the Irish subsidiary. A quick and effective strategic response was necessary. MEU-IR decided to launch a sub-brand called Black Diamond featuring products manufactured by Vestel. The launch was a tremendous success. Despite the negative publicity surrounding Mitsubishi''s exit from the business, the Irish subsidiary not only held their leadership position, but actually grew their share of the market in Ireland. The case can be used to achieve a number of objectives, to show how external factors can very suddenly change a company''s competitive situation and potentially undo much of the good work that management may have already done. The teaching objectives include: (1) to try to understand the criteria underpinning a successful brand launch; (2) to demonstrate the growing power of retailers in the consumer products area and how this retailer power can have important effects all the way up the supply chain; and (3) to provide students with the practical challenge of a brand extension decision. This case contains colour exhibits.

Settings

Location:
Size:
60 employees
Other setting(s):
1999-2000

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