case studies are included in this section which focus on a number of
aspects relating to these two market domains.
Case 4.1: Ratners: A case of corporate reputation
This case is written by Neil Botton, a Principal Lecturer in Strategic
Management, University of Westminster, and Dr Chris Carr, a
Senior Lecturer in Strategic Management at the Manchester
Business School, University of Manchester.
Abstract
During the 1980s the Ratner Group grew to become one of the
world’s leading jewellers. It developed a highly distinctive, volume-
oriented approach to the marketing of jewellery and embarked on an
ambitious growth programme through acquisition. In 1991 Gerald
Ratner, Chairman of Ratner, achieved notoriety by having part of the
content of a speech he made at the Institute of Directors printed on
the front page of the Sunnewspaper, in which he described one of his
products as ‘total crap’. He was reported further as saying that his
products ‘have very little to do with quality’ and that one of his prod-
ucts – an imitation book – ‘was in the worst possible taste’. This led
to a downturn in the Ratner Group’s fortunes. The case traces the
misfortunes of the Group, leading to the resignation of Gerald Ratner
and the steps taken by the new Chairman, James McAdam, in
attempting to turn around the company in the face of hostile share-
holders and former customers.
Learning points
This case study documents one of the most visible mistakes a
company chairman has made in giving a speech in front of an exter-
nal public audience in recent years. By describing his product as
‘total crap’ he alienated many constituents within the referral and
influence market domains. This case covers strategy and marketing
issues as well as relationship marketing issues.
Broad marketing and strategic issues:
●dealing with structural changes in an industry
●managing rapid growth and acquisitions
●repositioning a major retail business.
248 Relationship Marketing