Published by:
Harvard Business Publishing
Revision date: 20-Feb-2013
Length: 8 pages
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Abstract
For teaching purposes, this is the commentary-only version of the HBR case study. As president of Scotch whisky maker Glenmeadie, Bob Littlefield is pleased to see the results of his CMO's recent marketing initiatives. There are new interactive capabilities on the company's Web site, a product information call center, and numerous other customer interfaces designed to deepen consumers' connection to the brand. Thanks to these front-end innovations, sales are up - and largely because of more loyal purchasing behavior, research shows. But not all the news is good. Glenmeadie's CFO says the marketing programs account for half the company's costs. Meanwhile, Glenmeadie's master distiller, Ellis Cameron, resents the fact that, with so much money going toward enhancing customer relations, there isn't enough left for his R&D efforts. In a meeting with Bob, he launches into a tirade about priorities. 'There's an old expression,' Ellis says, 'Build a better mousetrap, and the world will beat a path to your door.' Glenmeadie, he says, is neglecting the customer's basic need, 'We've given up on redesigning his mousetrap and are trying to trap him instead!' Commenting on this fictional case study are David Herman, president of luggage maker Hartmann; Marketspace's president, Jeffrey Rayport; Stephen Dull, vice president of strategy at VF; and Joe Scafido, who leads innovation at Dunkin' Brands.
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Abstract
For teaching purposes, this is the commentary-only version of the HBR case study. As president of Scotch whisky maker Glenmeadie, Bob Littlefield is pleased to see the results of his CMO's recent marketing initiatives. There are new interactive capabilities on the company's Web site, a product information call center, and numerous other customer interfaces designed to deepen consumers' connection to the brand. Thanks to these front-end innovations, sales are up - and largely because of more loyal purchasing behavior, research shows. But not all the news is good. Glenmeadie's CFO says the marketing programs account for half the company's costs. Meanwhile, Glenmeadie's master distiller, Ellis Cameron, resents the fact that, with so much money going toward enhancing customer relations, there isn't enough left for his R&D efforts. In a meeting with Bob, he launches into a tirade about priorities. 'There's an old expression,' Ellis says, 'Build a better mousetrap, and the world will beat a path to your door.' Glenmeadie, he says, is neglecting the customer's basic need, 'We've given up on redesigning his mousetrap and are trying to trap him instead!' Commenting on this fictional case study are David Herman, president of luggage maker Hartmann; Marketspace's president, Jeffrey Rayport; Stephen Dull, vice president of strategy at VF; and Joe Scafido, who leads innovation at Dunkin' Brands.