2006 Practice Prize DVDs
06.01 “The Power of CLV”
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by V. Kumar, Denise Beckman, Tim Bohling, Rajkumar VenkatesanThis research described a carefully planned and implemented program within IBM to optimize the number of times the organization “touches” its customers, incorporating innovations with respect to alignment with corporate objectives, forecasting cost to serve, imputing unobserved contribution margins, and allowing for inter-dependence of purchase incidence and quantity.
WINNER: 06.02 “Incentive Planning System: A DSS for Planning Pricing and Promotions in the Automobile Industry”
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by Professor Jorge Silva-Risso from the University of California, Riverside, and J.D. Power’s Irina IonovaTheir work reports on a promotion analysis tool that enabled automobile manufacturers to improve the timing, frequency, and components of their promotional activity to maintain sales but reduce margin loss. The authors presented evidence of savings in the order of two billion dollars, with Daimler Chrylser executives alone claiming annual benefits of $500 million. The research used the sales data available to J D Power to help it work with individual car manufacturers to calculate the dynamic impact of sales promotions. The work was implemented in a phased approach, allowing an evolutionary increase in sophistication amongst its users.
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06.03 “BRAN*EQT: A Model and Simulator for Estimating, Tracking, and Managing Multi-category Brand Equity”
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by Venkatesh Shankar, Pablo Azar, and Matthew Fuller
In the BRAN*EQT study the researchers examine the drivers of the Allstate brandname. By understanding how advertising investments directly influenced the brand equity of Allstate, the researchers were able to make brand building activities within the firm accountable. This lead to advertising changing from being viewed as a discretionary cost, to a strategic investment. One of the useful aspects of the research was to untease the benefits of corporate branding into the advantages that were captured by each of the divisions within Allstate.
06.04 “Planning New Tariffs at Tele.Ring – An Integrated STP Tool Designed for Managerial Applicability”
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by Martin Natter, Andreas Mild, Alfred Taudes, and Udo WagnerTelering is a leading cellular phone supplier within Austria. A new entrant threatened its position and past experience suggested its share could become marginal as it was squeezed by different players within the market. By undertaking a detailed segmentation study Telering was able to identify a new market opportunity of no upfront subscription charges, which would be difficult for other competitors to mimic. A sophisticated perceptual mapping study not only made the resulting service innovation credible to senior management, overcoming internal barriers to its launch, it also provided ideas as to how the product could be introduced with a compelling and relevant advertising campaign.
