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COURSE  NUMBER:   BUS  771  (001C)  CLASSROOM:     Sage  3221  CLASS  SCHEDULE:   Tuesday,  6:10pm  –  9:20pm  INSTRUCTOR:     Andrew  D.  Borodin  OFFICE:       Sage  Hall  1444  PHONE:       (920)  424-­‐4440  E-­‐MAIL:       borodina@uwosh.edu  OFFICE  HOURS:     Wed  10:00am-­‐12:00pm  (or  by  appointment)    

COURSE DESCRIPTION Marketing Strategy is designed to be a capstone marketing course. In this course we adopt the Interactive Learning Model of the Harvard Business School (and many others). The model operates under the premise that “success in business comes from experience and knowledge, from the ability to analyze and reflect, from observing and interacting with others, and learning from these encounters.”

The primary learning objective in this course is to develop a mental framework for solving general marketing problems. Much of the material in this class may not be new; the focus is on the use of concepts to make evaluations and decisions about marketing. Having taken a variety of courses prescribed by the MBA program, you are now ready to put all the pieces together for a complete picture. You will work with the tools you have developed in other courses and play the role of a marketing manager.

In a nutshell, the mental framework for how to think of marketing strategy is: marketing strategy should be a roadmap that identifies where you are, where you want to be, and what you should do as you go from where you are to where you want to be. Strategy should have a long-term view and should tell a story that ties together different marketing and business issues. The focus is on thinking about the strategy framework and how to apply this framework to guide your strategic decisions. The main idea in this class is to think about how different issues should be considered when developing a strategic story.

COURSE OBJECTIVES The course has several broad objectives. Every student will reach these objectives proportionate to their commitment to the goals and willingness to do the required work to achieve them. The first objective is to enhance each person’s ability to identify marketing problems, analyze their nature, and develop innovative solutions consistent with analysis. A second broad objective is to give you an opportunity to apply your marketing knowledge to real-life situations. More specifically, the course aims to help students achieve the following objectives:

! Understand the role of strategic planning in marketing management. ! Be able to go through the process of developing a “deep dive” for a company/product/service. ! Be able to go through the process of analyzing comprehensive case scenarios. ! Be able to recognize cross-functional implications of marketing decisions via simulations. ! Be able to explore marketing topics in greater detail and apply these to real world situations. ! Develop, improve and use written communication skills.

MARKETING STRATEGY Spring  2016

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COURSE MATERIAL Required Course Materials include:

• Kim, W. Chan and Renée Mauborgne (2015), Blue Ocean Strategy, Boston, Massachusetts: Harvard Business School Press. ISBN13: 978-1-62527-449-6

• Cases that accompany Blue Ocean Strategy. See Appendix for a full listing. These cases will have to be purchased by each student. To access the Course Pack, follow this link: https://cb.hbsp.harvard.edu/cbmp/access/44527459

• Capstone Business Simulation Subscription (the simulation must be purchased directly from

the vendor at http://www.capsim.com/ ) All students are require to register – Be sure to select Marketing Strategy 771-001C (your section) which is also industry C77343. Once purchased, the manual can be downloaded directly from the web.

Optional: • Any guidebook for developing a marketing plan. This can be a basic marketing textbook, as

they often contain sample plans. There are also many online sources and practitioner books that provide good information about writing a marketing plan. If you would like a book specifically for a guide, I recommend:

Wood, Marian Burk (2013), The Marketing Plan Handbook (5th edition), Upper Saddle River,

NJ: Pearson/Prentice Hall. ISBN10: 0-13307-835-3 (Earlier editions will suffice and may be less expensive.)

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GRADES Your grade will depend on how well you perform on the requirements of the course. If some parts are not clear to you, I will be glad to explain it in greater detail. More detail on grading for specific course requirements/assignments is given within each course section.

    Assignment   Weight  

Individual  Assignments  

Blue  Ocean  Case  Write-­‐ups   25%  

Deep  Dive   25%  

Weekly  Class  Discussion   15%  

Team  Assignments  Simulation  Performance   25%  

Participation  Team/Group/Peer  Evaluations     10%  

    Total:   100%  

Letter grades for all assignments and your final course average are calculated on a relative basis. The table below indicates how scores are converted into grades. No Rounding!

Score   Letter  grade  93+   A  

90  –  92.9   A-­‐  87  –  89.9   B+  83  –  86.9   B  80  –  82.9   B-­‐  77  –  79.9   C+  73  –  76.9   C  70  –  72.9   C-­‐  67  –  69.9   D+  63  –  66.9   D  60  –  62.9   D-­‐  

                       <  60   F  NO ROUNDING!

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BLUE OCEAN STRATEGY CASES Follow the link below to access the cases on the Harvard Business Publishing website. You will need to create a student account and purchase all the material that is listed in the coursepack. For the case write-ups please use the questions that I have provided below and not the questions that are in the case. https://cb.hbsp.harvard.edu/cbmp/access/44527459 Case #1: Wine Industry [yellow tail] Crafting Winning Strategies in a Mature Market: The US Wine Industry in 2001 W. Chan Kim; Renee Mauborgne; Jason Hunter; Brian Marks; Wayne Mortensen BOS018-PDF-ENG Assignment Questions: 1. How attractive is this industry? 2. Following the logic of competitive strategy, should a company enter this industry and if yes,

what should their strategy be? 3. Following the logic of competitive strategy, what strategy should an established player

follow? 4. What are the factors the industry competes on and invests in? 5. How long has the industry competed on these factors? Case #2: Circus (Cirque du Soleil) The Evolution of the Circus Industry (A) W. Chan Kim; Renee Mauborgne; Ben M. Bensaou; Matt Williamson BOS007-PDF-ENG | Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) W. Chan Kim; Renee Mauborgne; Ben M. Bensaou; Matt Williamson BOS008-PDF-ENG Assignment Questions: 1. Compared to Ringling Brothers and Barnum and Bailey Circus, what factors has Cirque du

Soleil eliminated, reduced, raised, and created? 2. What are the profitable growth consequences of these four actions? 3. When comparing the strategic profile of this offering to that of existing traditional circuses, is

there evidence of focus and divergence? Can a compelling tagline be formulated? 4. What non-customers have been drawn into this new market space? 5. Did Cirque du Soleil position along the existing productivity frontier of the circus industry?

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Case #3: Three Tiers of Non-Customers (Gillette) How a US Consumer Products Company Unlocked the Three Tiers of Non-customers W. Chan Kim; Renee Mauborgne; Olivier Henry BOS016-PDF-ENG Assignment Questions: 1. Who were the existing customers of the shaving industry at the beginning of the 20th century? 2. Who were the non-customers? 3. What factors kept people from shaving? 4. What factors did Gillette eliminate, reduce, increase and create based on its understanding of

non-customers to create and capture new demand by breaking the value-cost trade-off? 5. How did Gillette increase the size of its blue ocean? Case #4: Building profitable business models for value innovation (DoCoMo) NTT DoCoMo: Value Innovation at DoCoMo W. Chan Kim; Renee Mauborgne; Ben M. Bensaou; Jason Hunter; Yashushi Shiina BOS005-PDF-ENG Assignment Questions: 1. How did DoCoMo create differentiation at a low cost? 2. How did it reconstruct the market boundaries of the mobile phone and the PC Internet? 3. How did the strategic profile of DoCoMo’s i-mode differ from those of the mobile phone and

the PC Internet? 4. What is i-mode’s business model? 5. How did DoCoMo make profits out of its i-mode services? 6. How did it set its strategic price to unlock the mass buyers? Case #5: The strategic patterns behind the creation of new market spaces (auto, computer, cinema) Lessons from Breakthrough Strategic Moves Over the Last Century W. Chan Kim; Renee Mauborgne; Jason Hunter BOS010-PDF-ENG Assignment Questions: 1. Were the demand-creating strategic moves described in the case driven by technology

pioneering or value pioneering? Elaborate. 2. Was the blue ocean of new market space created by a new entrant or by an incumbent?

Elaborate. 3. Were these strategic moves executed during economic upturns, downturns, or both? Elaborate. 4. Were the industries attractive or unattractive? Elaborate. 5. Did these strategic moves target a specific segment of the market, or did they shift the

traditional industry focus to a wider market appeal? Elaborate.

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Case #6: Corporate strategy driving high growth (Apple) How Apple’s Corporate Strategy Drove High Growth W. Chan Kim; Renee Mauborgne; Oh Young Koo BOS022-PDF-ENG Also read: Apple articles.pdf Assignment Questions: 1. Suppose you were appointed as a new CEO of Apple, succeeding Gilbert Amelio in 1998,

when the company was on the verge of bankruptcy:

How would you diagnose the problem of Apple in terms of value, profit, and people?

Using the four actions framework (E-R-R-C Grid) introduced in Blue Ocean Strategy, what would you do to revive the company?

2. Reflecting on each offering of the iPod, iTunes music store, iPhone, and iPad, answer the following questions:

In which industry did Apple create a blue ocean? Was that industry attractive?

Was Apple a new entrant or an incumbent in the industry?

3. Reflecting on each offering of the iPod, iTunes music store, iPhone, and iPad, answer the following questions:

Where did the innovation come from? (technology/market/value)

Did Apple focus on the existing core customers?

Did Apple pursue either differentiation or low cost? Or both? Elaborate.

4. Reflecting on Sony’s struggle in 2011, suppose you are appointed as new CEO at Sony, succeeding Howard Stringer:

How would you diagnose the problem of Sony in terms value, profit, and people?

Using the four actions framework (E-R-R-C Grid) introduced in Blue Ocean Strategy, what would you do to revive the company?

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Case #7: Creating a Blue Ocean in the B2B space. (SalesForce.com) W. Chan Kim; Renee A. Mauborgne; Mi Ji; Jee Eun Lee INS255-PDF-ENG Assignment Questions: 1. Who were the noncustomers of the traditional CRM software industry? What were the biggest

blocks to buyer utility in traditional CRM software offerings?

2. Which one(s) of the six paths did Salesforce.com look across to create new market space? Can you draw the value curve of Salesforce.com’s initial on-demand CRM offering in the early 2000s versus traditional CRM software vendors’ on the strategy canvas?

3. How was Salesforce.com able to sustain its market leadership in the on-demand CRM market vis-à-vis both large players and new entrants for more than a decade?

Case #8: The People’s car (Tata Nano) Tata Nano: The People’s Car that Promises to Reconstruct the Automotive Industry W. Chan Kim; Renee A. Mauborgne; Robert Bong; Mi Ji INS262-PDF-ENG Assignment Questions: 1. If screened against the Blue Ocean Idea Index (BOI Index), did Tata Nano, as originally

conceived, create exceptional utility? Was it strategically priced to capture the target mass of four-wheeler noncustomers? Did it exercise target costing and hit its cost target? Did it effectively overcome possible adoption hurdles for employees, partners and the general public?

2. Despite huge initial orders for the Nano, by the time the car was commercially available, sales fell short of performance expectations. In your opinion, what were the major causes for Tata Nano’s setback? Can you explain this outcome using the framework of blue ocean strategy? In particular, what allowed Tata Motors to overcome the seemingly insurmountable obstacles posed by the commodity price crisis of 2008? What went wrong when Tata Motors tried to build its facilities in Singur with the intention to promote local growth and prosperity?

3. What should be Tata Nano’s next step to get back on track and head towards the blue ocean?

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Case #9: Blue Ocean moves that discourage imitation (Wikipedia) Making a Blue Ocean Strategic Move That Discourages Imitation: The Case of Wikipedia W. Chan Kim; Renee Mauborgne; Katrina Ling BOS020-PDF-ENG Assignment: 1. This week's case was Wikipedia. It was an interesting case because we learned how a non-

profit company could alter an industry. For this week's assignment think about some other industries that can potentially be disrupted by a non-profit player, describe the industry, and tell me how a non-profit would go about altering this industry.

2. List out the factors of competition that you think this industry competes on and create a strategy canvas.

3. Create an ERRC grid and explain how a new entrant into this industry would disrupt the industry and create a new strategy canvas that the new entrant would follow.

Case #10: Bringing the Shoe Store to your Home (Zappos) Zappos.com (A): Bringing the Shoe Store to your Home W. Chan Kim; Oh Young Koo; Renee A. Mauborgne INS259-PDF-ENG Assignment Questions: 1. In 1999, the footwear market in America was sized at US$40 billion. Mail order shoe sales

accounted for 5% of the market. At that time, the online footwear market was worth a mere US$37 million. What does this imply? Discuss your interpretation of these facts.

2. On the strategic profile of the brick-and-mortar shoe store:

Based on your shoe-buying experience, what are the benefits and pain points of the brick-and-mortar shoe store?

3. On the strategic profile of the online shoe store:

a. If you purchase a pair of shoes online, what are the benefits and the pain points versus a brick-and mortar shoe store? If you haven’t purchased shoes online, what is the reason?

b. Using the Buyer Utility Map introduced in Blue Ocean Strategy, identify blocks to utilities across the buyer experience cycle.

4. What is the difference between Zappos and online and brick-and-mortar shoe stores? Is Zappos a typical online shoe store?

a. In light of the Buyer Utility Map drawn above for online shoe stores, which blocks to utilities has Zappos cleared?

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b. How has Zappos brought the shoe store to your home? Answer this question by drawing the value curve of Zappos on a strategy canvas versus that of conventional online shoe stores.

c. Out of six paths to create blue oceans, which was (or were) used to create Zappos’ blue ocean?

5. How did Zappos break the existing value-cost trade-off of the conventional online shoe store?

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CAPSIM SIMULATION We will be using an innovative computer simulation game for this class (www.capsim.com). The simulation is designed to give you a more realistic “feel” for how business decisions affect the organization as a whole. Thus, in addition to marketing-based decisions, you will also be making decisions concerning such areas as finance and production. An important goal with regard to the simulation is to gain a better appreciation for how the functional areas within a firm work together to achieve stated objectives. • Each student enrolled in the class will need to purchase the simulation from the online

vendor. The individual price is about $54. I have set up the simulation already. Register and search for industry C77343. The name of the class is: Marketing Strategy 771-001C.

Each team is required to submit a one-page summary that outlines the general strategy that the team will pursue. The power point presentation and your manual contain several basic strategies that you can select from or you can create your own. Your summary statement is due on March 1st. It should include the following:

o Corporate strategy and mission statement for your team. o Outline of your company’s Marketing, Production, R&D, and Financial intents.

Round decisions are to be submitted by the corresponding deadlines (Tuesday by 1:00 pm). Rounds cannot be reprocessed, so make sure all decisions are submitted on time. Performance will be evaluated by the overall points that your team earns (team ranking). There will also be a subjective element to the grading, for instance, a team might have a rough start and may not place well in the end, but if that team doesn’t give up and shows consistent improvement as the rounds progress, then that team will earn a better grade than their final ranking suggests.

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Deep Dive Assignment This is an individual assignment. A Deep Dive is best described as a research project. It will be up to you to pick a company or a specific product line from a particular company. The company should ideally be publically traded so that information can be obtained from their annual reports; however, a private company can also be chosen (this will make information harder to obtain). Once you have selected a company, the major portion of this project is to 1) conduct a thorough situational analysis, 2) break out their marketing program in detail (the 4Ps), and 3) recommend a thoughtful future marketing strategy utilizing the Blue Ocean Strategy tools. Your grade for this assignment will be derived as follows:

EVALUATION CRITERIA FOR THE MARKETING PLAN EVALUATION CRITERIA SCORING *Executive Summary (1 page) *Brief introduction of the company *Brief introduction of the product/product line or service

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SITUATION ANALYSIS o Internal o External o Competitive

* Positioning Strategy (how is the product/service positioned relative to other “similar” products/services, how is it unique?) * Target Market (identify target market, how big the target market is, and primary/secondary markets)

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MARKETING MIX (Describe in the 4Ps in detail) * Product (branding, packaging etc.) * Pricing * Distribution * Promotion (Integrated Marketing Communications: personal selling, sales promotion, traditional advertising media, nontraditional advertising online & social media, merchandising, publicity)

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BOS STRATEGY RECOMMENDATION * Strategy Canvas * ERRC Grid * 3 tiers of non-customers

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WRITTEN & ORAL PRESENTATION * Organization of report (flow, clarity, to the point) * Writing style (easy to understand, free from errors) * Professional appeal * Clarity and Professionalism of oral presentation

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TOTAL POINTS 100

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Policy on Academic Integrity Academic Dishonesty – University policy with respect to academic misconduct will be strictly enforced. Any attempts at cheating, plagiarism, or facilitating academic dishonesty will be severely dealt with and may result in a penalty of an “F” for the course.

The University of Wisconsin Oshkosh is committed to a standard of academic integrity for all students. The system guidelines state: “Students are responsible for the honest completion and representation of their work, for the appropriate citation of sources, and for respect for others’ academic endeavors.” (UWS 14.01, Wisconsin Administrative Code)

Students are encouraged to review the procedure related to violations of academic honesty as outlined in chapter UWS 14, Wisconsin Administrative Code. The system guidelines and local procedures can be found on the Dean of Student website at http://www.uwosh.edu/dean/conduct.htm.

E-mails

Please include BUS-771 in the subject line in your emails. Emails about group issues/questions should be addressed not only to me but also to all group members.

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WEEKLY SCHEDULE

Week Reading/Assignments/Deliverables

(to be completed PRIOR to class meeting) Agenda/Topics

(things we will do in class) 2/9 Review syllabus

Review CapSim Team Member Guide Review CapSim introduction slides

• Introductions & Organization • CapSim Simulation Introduction • Discuss Value • Discuss Blue Ocean concepts • Discuss basic marketing concepts

2/16 Review CapSim Team Member Guide Review CapSim Simulation Timeline Review CapSim Decision Guide Read Blue Ocean Ch. 1 & 2 Read Wine Industry case [yellow tail] Turn in Wine Industry case analysis (be prepared to discuss the case in class!)

• CapSim Team Member Guide • CapSim Simulation Timeline • CapSim Decision Guide • Discuss Wine Industry case [yellow tail] • Wine Industry videos

2/23 Make practice round 1 decisions by 1:00pm Read Blue Ocean Ch. 3 & 4 Read Circus case A & B Turn in Circus case analysis (be prepared to discuss the case in class!) Start developing Deep Dive ideas

• CapSim Practice Round 1 discussion • Watch Cirque video • Discuss Circus case A & B • Discuss marketing plan ideas

3/1 Make practice round 2 decisions by 1:00pm CapSim: 1 Page Mission/Strategy/Measures Read Blue Ocean Ch. 5 Read Gillette case Turn in Gillette case analysis (be prepared to discuss the case in class!)

• CapSim Practice Round 2 discussion • Gillette presentation • Discuss Gillette case • Address questions and concerns

3/8 Make CapSim Round 1 decisions by 1:00pm (this is the start of the official rounds) Read Blue Ocean Ch. 6 Read DoCoMo case Turn in DoCoMo case analysis (be prepared to discuss the case in class!)

• CapSim Round 1 discussion • CapSim: 1 Page Mission/Strategy/Measures • DoCoMo discussion • Address questions and concerns

3/15 Make CapSim Round 2 decisions by 1:00pm Read Blue Ocean Ch. 7 Read Century Lessons case Turn in Century Lessons case analysis (be prepared to discuss the case in class!)

• CapSim Round 2 discussion • Century Lessons videos • Century Lessons discussion • Address questions and concerns

3/22 Spring Break

• Spring Break

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3/29

Make CapSim Round 3 decisions by 1:00pm Read Apple case Turn in Apple case analysis (be prepared to discuss the case in class!)

• CapSim Round 3 discussion • Apple videos • Apple case discussion • Address questions and concerns

4/5 Make CapSim Round 4 decisions by 1:00pm

Read SalesForce.com case Turn in SalesForce.com case analysis (be prepared to discuss the case in class!)

• CapSim Round 4 discussion • SalesForce.com case discussion • Address questions and concerns

4/12 Make CapSim Round 5 decisions by 1:00pm

Read Blue Ocean Ch. 9 Read Tata Nano case Turn in Tata Nano case analysis (be prepared to discuss the case in class!)

• CapSim Round 5 discussion • Tata Nano videos • Tata Nano case discussion • Address questions and concerns

4/19 Make CapSim Round 6 decisions by 1:00pm Read Wikipedia case Turn in Wikipedia case analysis (be prepared to discuss the case in class!)

• CapSim Round 6 discussion • Wikipedia videos • Wikipedia case discussion • Address questions and concerns

4/26 Make CapSim Round 7 decisions by 1:00pm

Read Zappos case Turn in Zappos case analysis (be prepared to discuss the case in class!)

• CapSim Round 7 discussion • Zappos videos • Zappos case discussion • Address questions and concerns

5/3 Make CapSim Round 8 decisions by 1:00pm • CapSim Round 8 discussion

• CapSim wrap-up • Deep Dives Due 4/29/16 at 11:55PM • Deep dive presentations

5/10 Deep dive presentations

• Deep dive presentations • Course Wrap-up