Recent Publications

• RECENT PUBLICATION: Case

  Case | HBS Case Collection | April 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: marketing; marketing strategy; brands and branding; brand management; private equity; Brand Value; Brand equity; Marketing communications; advertising; marketing ROI; brand storytelling; Consumer Products Industry; consumer behavior; Food and Beverage Industry; Intangible assets; Marketing; Marketing Strategy; Brands and Branding; Consumer Behavior; Food; Marketing Communications; 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.  View Details

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• RECENT PUBLICATION: Article

  Article | Journal of the Association for Consumer Research | April 2019

  Rituals and Nuptials: The Emotional and Relational Consequences of Relationship Rituals

  Ximena Garcia-Rada, Ovul Sezer and Michael I. Norton

  Four studies reveal the benefits of relationship rituals: couples with relationship rituals report more positive emotions and greater relationship satisfaction and commitment than those without them. We show that rituals are crucial for understanding consumption practices in romantic relationships. Using a sample of romantic dyads, we identify a novel moderating role of mutual agreement, such that both members of a couple must agree that they have a ritual: different couples can see the same consumption behavior (e.g., paying for a weekly date night) as either a ritual or a routine, and the benefits accrue only to those couples who jointly view it as a symbolically meaningful ritual. We contribute to the literature on rituals by empirically documenting the relationships between rituals, specific emotions, and relationship satisfaction, and by demonstrating that the same sequence of actions can have different psychological effects due to the role of mutual agreement. Finally, we contribute to research on consumers’ shared experiences by suggesting a novel mechanism for committing to such experiences: relationship rituals.

  Keywords: rituals; Relationship Satisfaction; Relationships; Satisfaction; Spending; Behavior; Perception; Emotions;

  Citation:

  Garcia-Rada, Ximena, Ovul Sezer, and Michael I. Norton. "Rituals and Nuptials: The Emotional and Relational Consequences of Relationship Rituals." Journal of the Association for Consumer Research 4, no. 2 (April 2019): 185–197.  View Details

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• RECENT PUBLICATION: Case

  Case | HBS Case Collection | March 2019

  HOPI: Turkey's Shopping Companion

  Sunil Gupta, Donald Ngwe and Gamze Yucaoglu

  The case opens in 2017 as Onur Erbay, CEO of HOPI, a multi-vendor loyalty platform, is contemplating a critical decision. The case chronicles the origins of Boyner Group, the parent company of HOPI and a major retailer in Turkey, and development of retail and customer relationship management (CRM) in Turkey over the years. Before HOPI, Boyner Group retailers were unable to trace customers across the Group’s brands or form insights about customers’ preferences and habits beyond what brand-specific CRM and loyalty programs provided data for. HOPI was born as the management team at Boyner Group realized the need to serve the customer holistically; the program was designed as a coalition loyalty program including non-Boyner retailer partners. The case provides a detailed overview of the design choices for HOPI—a mobile only app with its own currency, paracik, its revenue model, user experience, and how the company planned to leverage big data to segment the customers for retailers and increase purchasing power for customers. Since its launch in 2015, HOPI had 5.5 million downloads and 300 thousand daily active users browsing campaigns offered by over 116 coalition retailers that ranged from gas stations and cinemas to supermarkets and department stores. In 2017, Erbay, who had ambitions to grow HOPI beyond a loyalty program, was faced with harsh realities: the Turkish market was very price sensitive, several competitors had emerged since HOPI’s launch, and several retailers and consumers preferred discounts at the time of purchase instead of earning loyalty points for future purchases. Erbay was also facing pressure from the parent company to make HOPI profitable. Was it time for HOPI to pivot to the discount model and abandon its original concept? HOPI has provided a supplementary data set to allow for a more in-depth analysis of the program's impact on customer behavior and retailer profits. The data covers four years, two years prior to HOPI’s start and two years after, for two retailers in the coalition loyalty program. The data set includes all customers and transactions at each of the retailers, the final price paid by each customer, and whether the HOPI app was used as part of the transaction. In all, the data contains approximately 2.7 million transactions for 578,078 unique customers.

  Keywords: Loyalty programs; multi-vendor platform; retail; big data; Customer Relationship Management; Mobile Technology; Business Model; Data and Data Sets; Competitive Strategy; Decision Making; Technology Industry; Retail Industry; Turkey;

  Citation:

  Gupta, Sunil, Donald Ngwe, and Gamze Yucaoglu. "HOPI: Turkey's Shopping Companion." Harvard Business School Case 519-057, March 2019.  View Details

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