Case | HBS Case Collection | March 2009 (Revised June 2010)

Neck & Neck: Leveraging the Club Neck Information

Abstract

Commercial Director Prado wonders how to leverage the loyalty card information to prepare the fall 2008 budget. The case discusses the value of subjective and objective information for profit-planning purposes. Spanish children's apparel retailer Neck & Neck uses loyalty card information for tactical purposes, such as promotional campaigns. Its management team is thinking about how to incorporate that information to the budgeting (profit-planning) process. From an analytical standpoint the case looks at the surprising results of a mailing campaign that reveals the consequences of inadequate updating of the customer database. Also, the budgeting data in the case may be used to teach regression model selection and R-squared.

Keywords: Customer Relationship Management; Profit; Knowledge Use and Leverage; Marketing; Consumer Behavior; Retail Industry;

Citation:

Martinez-Jerez, Francisco de Asis, Jasmijn Bol, Christopher Ittner, and Katherine Miller. "Neck & Neck: Leveraging the Club Neck Information." Harvard Business School Case 109-070, March 2009. (Revised June 2010.)