How H-P Reclaimed Its PC Lead Over Dell I.Hiring Todd Bradley from PalmOne II.“HP is fighting on the wrong battlefield”  Shift of Channel Focus (ex: Store-exclusive notebook) III. Migration of PC demand: Desktops  Notebooks (different buying/using behavior) IV. H-P needed to convince shoppers that retailer was the better channel choice  Shift of H-P PC Positioning: Product Focus  User Focus (“The Computer is Personal Again”) V. Promotion Shift: More Pull  More Push*

12 Two Promotional Strategies** Two Promotional Strategies** Pull Strategy Manufacturer Channel members Final users (consumer or industrial) Final users (consumer or industrial) Channel members Manufacturer Push Strategy 1* 2 3 *Numbers indicate sequence of flows Promotion flow Negotiation flow Product flow 1 2 3

Different Channels for Movie viewing Why is Redbox so popular? The idea of self-service retailing: –When does it work? –New venture for Coinstar Future of video rental Redbox vs. Netflix Any good item for self-service retailing? Think Outside the Redbox

Dell’s Strategy for Growth* 1.Current Market Portfolio * Business Model 2. Advantages of Dell Model 1.Cost efficiency of direct model 2.Customization & Responsiveness 3.Focus on detail 3. Three-Step Growth Strategy* 4. New Frontier for Dell: Consumer Electronics

Dell’s Strategy for Growth 5. Three Main Challenges for CE Market 1.No Customization and Less Responsiveness 2.Will People Buy CE Direct? 3.Dell’s Brand Equity for CE Product Mike George’s two comments 6. Playing the OEM game (back page) - Who are customers? - Upside & Downside - Response from resellers and small manufacturers

Dell’s Strategy for Growth 7. Recent Performance (FT article in 2005) 1.Slowing growth 2.“Now Dell is the market.” 3.Heavy Reliance on PC segment 4.Slipping Price Advantage and Built-to-Order System 5.Competitors have caught up 6. Dilemma for Dell - Shoot low? - Shoot high? - Is Dell Model Obsolete for Now?

Dell To Rely Less on Direct Sales (WSJ article in 2007) Dell’s Broad, Global Retail Push –Selling Dell PC through Wal-Mart Why Go to Retail? What is happening to Its Direct business model? “The Direct model has been a revolution, but it is not a religion.” - Michael Dell

Discounting Continues to Haunt Dell (WSJ article in 2010) Revenue is up, but profit is down. Why? –HP: Revenue is up and profit is also up Now no. 3 behind HP and Acer Share of total revenue from consumer market: 2003 (???)  2010 (???) Compete against “white box”

Move Over, Coke 1.Key Challenges for small guys 2.Describe Bikoff’s Product Strategy 3.Describe Bikoff’s Marketing Strategy 4.Describe Bikoff’s Marketing Channel Strategy 1.Structure: types of stores, intensity, level 2.Management: support & relationship * Positioning of vitaminwater

After the Sale is Over 1.Brand Ownership Change 2.What happened to existing distribution network of Vitaminwater? 3.What is the problem here? 4.How would you solve the problem? 5.Learning from the past: Snapple

Ping Golf Club 1.Through what type of channel intermediary are Ping Clubs being sold? 2.What are key factors that drive Ping’s channel choice? 3.What is the intensity of their distribution? 4.How would you describe Ping’s channel Relationship management?

The Monster that Ate Hollywood Key Word: Channel Evolution –Supply side factor, demand side factor, technology Changes in Movie Studios Changes in Studios ’ Competitive Strategy* –Movie Making Side –Revenue Model (Distribution and Exhibition) Changes due to alternative movie distribution channels: –Marketing Channels: –Products: –Markets:

Video Case: The Monster that Ate Hollywood Changes in Movie Studios –cottage industry  global industry Changes in Studios’ Competitive Strategy* –Movie Making: Changing Importance of Marketing vs. Movie Quality Create Buzz Opening Weekend –Movie Production: Make a Safe Bet  Earnings Management and Relying on Big Movie Stars

Video Case: The Monster that Ate Hollywood – Movie Distribution and Exhibition –Movie Distributors: Part of Multinational Movie Studios  Show only “Big Money” movies –Movie Exhibition: Wide Release and Short-term Changes due to alternative movie distribution channels: –Channels: more vertical integration –Products: build a franchise around a movie –Markets: domestic  go International Topics for thoughts –An example of another industry for this kind of business model? –Future of Movie Marketing Channel