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• Case | HBS Case Collection | December 2018 (Revised November 2019)

  Shiseido: Reinvesting in Brand

  Jill Avery and Nobuo Sato

  Shiseido was in the midst of a six year corporate turnaround, trying to reverse the effects of decades of under-investment in R&D and marketing which had led to a cycle of declining customer support and brand value. Would the CEO’s VISION 2020 plan, centered on four strategies: 1.) increasing R&D spending from 1.8% to 3% of sales, 2.) investing an incremental ¥120 billion in brand-building marketing, 3.) moving to a “think global-act local” matrixed brand management structure, and 4.) rethinking brand portfolio strategy, be enough to achieve aggressive 8% per year sales goals while simultaneously increasing the company’s operating margin from 8% to 10% in the highly competitive and slow growing beauty industry?

  Keywords: brand management; Brand Value; turnaround; brand portfolio; brand communication; global brands; digital marketing; Return on investment; marketing ROI; internet marketing; Marketing; Marketing Strategy; Brands and Branding; Value; Growth and Development Strategy; Investment Return; Consumer Behavior; Beauty and Cosmetics Industry; Consumer Products Industry; Japan; Asia;

  Citation:

  Avery, Jill, and Nobuo Sato. "Shiseido: Reinvesting in Brand." Harvard Business School Case 519-026, December 2018. (Revised November 2019.)  View Details

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• Case | HBS Case Collection | November 2019

  Away: Scaling a DTC Travel Brand

  Jill Avery and Joseph B. Fuller

  Away, a direct-to-consumer, digital native e-commerce seller of travel luggage, is debating how to invest its latest round of venture funding. How quickly could and should Away scale and what were the most promising growth trajectories to maximize its potential? Three decisions face the founders. Should Away continue to invest in driving growth in suitcases and other travel bags or was it time to begin to expand into other adjacent travel categories? How should they use the results of the company’s first customer segmentation study to select target segments and quantify their growth aspirations? What were the right distribution strategies moving forward following a series of pilots that included company-owned stores, temporary airport kiosks, and pop-up experiences with retailer partners?

  Keywords: brands and branding; brand management; DTC; e-commerce; marketing; marketing strategy; entrepreneurship; venture capital; Consumer Products Industry; travel industry; brand extension; lifestyle brand; consumer behavior; customer segmentation; retailing; Scaling and Growth; Startup; Brands and Branding; Marketing Strategy; Marketing Channels; Entrepreneurship; Venture Capital; Consumer Products Industry; Travel Industry; United States; North America;

  Citation:

  Avery, Jill, and Joseph B. Fuller. "Away: Scaling a DTC Travel Brand." Harvard Business School Case 520-051, November 2019.  View Details

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• Working Paper | 2019

  A Quantity-Driven Theory of Term Premiums and Exchange Rates

  Robin Greenwood, Samuel G. Hanson, Jeremy C. Stein and Adi Sunderam

  We develop a model in which risk-averse, specialized bond investors must be paid to absorb shocks to the supply and demand for long-term bonds in two currencies. Since long-term bonds and foreign exchange are both exposed to unexpected movements in short-term interest rates, our model naturally links the predictability of long-term bond returns to the predictability of foreign exchange returns. Specifically, a shift in the net supply of long-term bonds in one currency influences bond term premiums in both currencies as well as the foreign exchange rate between the two currencies. Our model matches several important empirical patterns, including the co-movement between exchange rates and bond term premiums as well as the finding that central banks' quantitative easing policies impact not only local-currency long-term yields, but also foreign exchange rates. We also show that this quantity-driven approach provides a unified account explaining both why foreign exchange tends to outperform when the foreign interest rates exceed domestic rates and why long-term bonds tend to outperform when the yield curve is steep.

  Keywords: term premium; exchange rate; Bonds; Currency; Theory;

  Citation:

  Greenwood, Robin, Samuel G. Hanson, Jeremy C. Stein, and Adi Sunderam. "A Quantity-Driven Theory of Term Premiums and Exchange Rates." Working Paper, November 2019.  View Details

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