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• Case | HBS Case Collection | December 2018 (Revised July 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 July 2019.)  View Details

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• Case | HBS Case Collection | April 2019 (Revised July 2019)

  Kraft Heinz: The $8 Billion Brand Write-Down

  Jill Avery

  On Friday, February 22, 2019, following an unexpected and disappointing earnings report, The Kraft Heinz Company’s stock price fell 27%, wiping out $16 billion in market value. CEO Bernardo Hees had announced that the company had taken a $15.4 billion asset write-down, that the company would be cutting its annual dividend from $2.50 to $1.60 and that it was under SEC investigation for accounting irregularities related to its procurement process. $8.3 billion of the asset write-down was related to a loss in value of the firm’s intangible assets, specifically its Kraft and Oscar Mayer brands. As Kraft Heinz looked ahead to the future, it was time to recalibrate its brand management strategies. With $50 billion in brand assets remaining on its balance sheet, effectively managing its brands going forward was critical to avoiding another brand asset write-down and to regaining the $8 billion brand value the company had just lost. Was Kraft Heinz's brand asset write-down the beginning of the end of the market dominance of "Big Food" brands across the board or was it idiosyncratic and a result of the firm's brand management resources, capabilities, and strategies?

  Keywords: brand management; Brand Value; Brand equity; marketing ROI; brand storytelling; Intangible assets; brand valuation; Marketing; Marketing Strategy; Brands and Branding; Management; Corporate Strategy; Consumer Behavior; Food; Marketing Communications; Advertising; Private Equity; Consumer Products Industry; Food and Beverage Industry; United States; North America;

  Citation:

  Avery, Jill. "Kraft Heinz: The $8 Billion Brand Write-Down." Harvard Business School Case 519-076, April 2019. (Revised July 2019.)  View Details

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• Case | HBS Case Collection | November 2016 (Revised July 2019)

  Lenovo to Buy IBM PC: Integration Challenges

  David G. Fubini and Christine Snively

  In December 2004, Chinese computer manufacturer Lenovo announced its purchase of IBM’s PC division. At the time, few industry observers were optimistic about the merger of these entities with seemingly opposite company cultures. How should the two entities plan to integrate?

  Keywords: Integration; Strategy; Organizational Culture; Computer Industry; Technology Industry; United States; China;

  Citation:

  Fubini, David G., and Christine Snively. "Lenovo to Buy IBM PC: Integration Challenges." Harvard Business School Case 417-042, November 2016. (Revised July 2019.)  View Details

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