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Assignment

Marketing Management MB0030


(3 credits)
60 Marks
Set 1
Q1. Analyze the existing business portfolio of any one company using BCG
matrix, GE matrix, and Ansoff model.

Ans. Designing an appropriate business portfolio: After setting mission and objectives,
management will develop its business portfolio. Business portfolio is the right mix of businesses
that company operates and products that offers to customers. Portfolio analysis is the process by
which company analyze its products and businesses.
Company develops their business portfolio in two steps
a. Analyze the existing business portfolio and decide which business should receive more, less or
no investment.
b. Developing the new business portfolio for future to meet growth opportunities and eliminating
the unprofitable portfolios.
Analyzing the existing business portfolio:
The current business portfolio of the company is analyzed by the businesses in which it operates.
To make it clearer, let me take an example of ITC group. The company operates in FMCG,
hotels, paper boards, specialty papers and packaging and agribusiness. These businesses are
independent from each other and have their mission and objectives separately. These subsidiaries
of organizations are called as Strategic business units (SBU)
Strategic business unit: The unit of the company that has separate mission and objectives and that
can be planned independently from other businesses.
Characteristics of SBU.
1. It may be brand, or a product line or separate division of the company.
2. It is having distinct mission and objectives.
3. It is managed by separate executive team.
Strategic planning models used in assessing the existing businesses:
1. BCG matrix (Boston Consultancy Group)
2. GE matrix (General electric)
BCG matrix: This model is used to identify company’s SBU’s position in the market. This model
identifies the SBU’s strength, weaknesses, opportunities and threats on the basis of market
growth rate and relative market share. This model is also known as growth share matrix.
Relative Market Share Axis components:
1. Market growth rate: The rate at which market is growing
2. Relative market share: Market share of the SBU divided by the market share of the largest
competitor.
Model components:
Star: This category represents the high market share and high industry growth. SBU’s in this
category require large investment to defend their position. SBU will turn as cash cow after some
time.
Cash cows: This category represents the low growth rate and high market share which is the
characteristic of SBU operating in mature industry. Here company needs less investment to hold
their position. Hence it generates more cash or in management terms we say cash cow can be
milked.
Question Mark: This category represents high market growth and low market share. SBU’s in
this category has two options, either to invest heavily and bring them to star position or divest /
liquidate from that position. Market growth rate
Low High
Dogs: SBU’s in this category generates less cash for the company as it operates in low growth
and low market share. Usually companies will not invest in this category and try to liquidate or
divest.
BCG matrix for ITC
1. SBU: FMCG Industry growth rate: 24% (AC Nielson retail audit report 2007)
Company growth rate: 50% (the Hindu business line 19 th January 2008)
Company’s market share: 8% (outlook business)
Largest competitor share: HUL: 54% (outlook business)
Relative market share= 0.14
2. SBU: Paper board
Industry growth rate: 7.2% (the Hindu business line 27 th May 2007)
Company growth rate: 11% (the Hindu business line 19 th January 2008)
Company’s market share: 55%
Largest competitors share: BILT 35%
ITC’s FMCG segment analysis shows that though it is market leader in some categories their
overall relative market share is 0.14. Company is in the high growth low relative market share
area i.e. questioning mark position. ITC should invest heavily to convert its SBU position into
star.
ITC’s Paperboard industry is in low growth and high market share category i.e. in cash cow
segment. It should plan for investing the cash generated from this position into other businesses.
GE matrix:
1 Management can use the GE business matrix to classify SBU’s on the basis of two factors
a. Market attractiveness: Market size, entry barriers, competitors, technology and profit margin
are some factors used to analyze the market attractiveness.
b. Business position can be determined on the basis of market share, SBU size, R&D capabilities
and cost controls. Each cell in the model represented by the particular strategy namely, invest
strategy, protect strategy, harvest strategy and divest strategy
2 Invest strategy: In this position SBU
a. Should receive ample resources
b. Should support by well financed marketing efforts.
3 Protect strategies: SBU’s in this position should
a. Allocate the resources selectively.
b. Develop strategies which help in maintain its market position.
c. Generate cash needed by other SBU’s.

4. Harvest strategy: SBUs should not receive substantial new resources and if required, sell them.
5. Divest strategy: SBUs which falls into this category should not receive any resources and sell I
or shut it as early as possible.
Developing the new business portfolios
After analyzing the existing business of the company, let us discuss company’s future plans i.e.
growth or downsizing. Company adopts growth strategies to become more competitive in the
market, Market attractiveness Low Medium High tap new opportunities and become preferred
employer. Downsizing is used when the product or market became unattractive to it. The Ansoff
Product Market Growth Matrix is a marketing tool created by Igor Ansoff and first published in
his article "Strategies for Diversification" in the Harvard Business Review (1957). The matrix
allows marketers to consider ways to grow the business via existing and/or new products, in
existing and/or new markets.
Ansoffs model of product/ market expansion.
a. Market penetration: A strategy used in increasing the sales of company’s existing products
without modifying it in the existing market.
Characteristics of market penetration.
1. Serve customer with existing products by opening new stores.
2. Increase the promotion activities to increase the consumption.
3. Improve the service offerings.
Cafécoffee day a reputed coffee chain in south India, started its operation in brigade road,
Bangalore, in the year 1996. It offers different varieties of the coffee to its existing customers.
Today it is having 100 stores in Bangalore.
b. Market development: In this strategy company identifies the new markets to sell their existing
products.
In case of market development company identifies and develops new markets for its existing
Products Café coffee day, enthused by the success of offering a world-class coffee experience,
has opened a Café in Vienna, Austria and is planning to open other Cafes in the Middle East,
Eastern Europe, Eurasia, Egypt and South East Asia in the coming months.
c. Product development: In this strategy, company identifies new product and sells them existing
markets.
Café coffee day added quick bites and ice-cream in their menu to cater to the needs of customers.
d. Diversification: A strategy for company growth through starting up or acquiring businesses
outside the company’s current products and markets.
Café coffee day started offering tea and cold drinks in its highway café retail outlets. These
highway café outlets offer excellent service to the travelers on the high way.
Downsizing: Eliminating the unprofitable products of the company from its product line
In the year 2000 M.S. Banga then chairman of Hindustan Unilever limited (HUL), used power
branding strategy to improve the sales and productivity. He reduced HUL’s number of products
from 110 to 35.
Q2. Discuss the Macro environment of a pharmaceutical company
Ans.
India has become an attractive destination for R&D, with opportunities emerging in this new
market post- WTO (World Trade Organization) accession. India's industrial development has
accelerated and its pharmaceutical industry has become one of the most successful. Driving
factors attracting international investment include:
1WTO accession
2 low labor costs
3 tax incentives from the Chinese government
4 R&D collaboration opportunities.
The Chinese pharmaceutical market is split almost equally between chemical and
biotechnology products at 70%, and TCM (traditional Chinese medicine) products at 30%.
The Chinese government has changed the face of the industry dramatically by:
● implementing WTO guidelines and protection for intellectual property rights
● shifting authority from the Ministry of Foreign Trade to the State Food and Drug.
Administration (SFDA): The SFDA has imposed higher drug registration requirements for
imported as well as locally manufactured products and promoted general compliance with the
Chinese Good Manufacturing Practice (GMP) standards for domestically produced products.
A number of domestic players could not withstand this pressure from the government—many
of them closed their businesses whilst others looked to upgrade their technologies through
tie-ups with foreign companies. The total value of the market in India was US$12.8 billion in
2005. Antibiotics have slowly decreased in sales; however, they still represent one-third of
the whole market. This is a large market share compared with the other therapeutic classes.
The three top therapeutic classes (antibiotics, circulatory and alimentary tract) represent
around 60% of the whole market.
India's TCM industry possesses great potential. The key issue is how to inspire this, which
requires government attention and enterprise efforts. On one hand, the government must
provide support with its policies; on the other hand, the government should strengthen its
recommendations on Chinese medicine planting. India possesses 12,807 kinds of medicinal
materials from natural sources out of which, 11,146 are of plant origin, 1,581 are from
animals, and 80 are from minerals, including more than 5,000 clinically validated folk
medicines.Compared with the big global players, domestic vaccine producers have small-
scale production, are backward in production technology and have high operation costs. In
India, clinical trials can be conducted at a much lower cost than in the West. India has a pool
of highly educated doctors who are keen to participate in clinical trials. Although India is
beginning to accept foreign clinical data, almost all new drugs entering the country must
conduct domestic testing in some form. At present, Class I, II and III drugs must undergo
phase I, II and III trials, although some Class III products are exempt from phase I trials.

The major forces attracting foreign investors to India are:


● quality of the clinical data
● reasonable costs
● ability to select patients rapidly.
Despite the huge growth potential, commercial health insurance still plays a minor role in the
local market, covering only a meager 10% of local residents' total medical expenditures.
Health insurance divides into two types in India:
● Rural Health Protection System.
● Urban Health Protection System
● Government Insurance Scheme—covers government employees
● Labor Insurance Scheme—covers enterprise employees.

In India, only 15% of the population has health insurance. Most of the rural population is not
covered.
The Chinese R&D investment approach has been shifting from technological alliances
towards international mergers and acquisitions. Overseas companies in India have established
700 R&D centers. Pharmaceutical regulation in India is based around the Drug
Administration Law. The government first implemented this law in 1984, with the last major
amendments taking place in 2001. In this emerging market, intellectual property protection is
a big challenge. When India became a member of the WTO in 2001, it promised to uphold
the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Accord, which mandates
that drugs receive at least 20 years of patent protection.
Political and legal reluctance to uphold the patent rights of foreign investors is not the
only issue. Intellectual theft comes in many forms, including small scale reverse engineering
and copying, systematic reverse R&D and reverse engineering, and counterfeiting. The major
distribution channel in retail market is the hospitals, with 80% of pharmacy products going to
patients through hospitals. Biotechnology globally has experienced rapid growth in recent
years and promises enormous potential for future growth. In India, the biotechnology
companies have developed more quickly than the pharmaceutical companies have.
Q3. Explain the components of MIS
Ans. Components of MIS
The following diagram shows a typical Marketing Information System with its components.
Which are?
1. Internal Records System
2. Marketing Intelligence System
3. Marketing Research System
4. Analytical Marketing System
Internal Records System
This includes information on (i) Order to payment cycle and (ii) sales information systems.
Order to payment cycle has a system which records, the timing and size of orders placed by
consumers, the payment cycle followed by consumers and the time taken to fulfill the orders, in
the shortest possible time. Customers place order through sales people and companies dispatch
the goods and receive payments directly or through bank. A proper record system pertaining to
order – to – payment cycle management helps mangers to decide on production and dispatch
schedule, inventory and accounts receivable schedule and also logistics and distribution
management schedules,
Sales Information Systems record everything in the sales Department, starting from Sales Call
Reports to prospects history to Sales territory and quota information for better sales planning and
forecasting purpose.
Marketing Intelligence System
This is a set of procedures and sources used by managers to obtain everyday information about
developments in the marketing environment. This system supplies ‘happenings’ data unlike
Internal Records System which supplies ‘results’ data. Marketing managers collect data from
published sources like books, magazines and journals; by talking to customers, intermediaries
and sales personnel. Some companies appoint specialists to gather consumer and competitor
information, who does mystery shopping to monitor the performance of their own or
competitor’s dealers. Competitor information can also be obtained by buying their product,
attending their press conferences, trade shows and reading their annual reports. Companies
purchase commercial information from outside suppliers and market research agencies like
IMRB, ORG – MARG to obtain competitive data on their sales, advertising expenditures etc.,
besides their own.
Marketing Research System
This is the third component of MIS. Marketing Research provides information to marketing
manager when he/she encounters marketing problems. This may involve conducting Marketing
Research survey by collecting primary data. These surveys may be conducted by the marketing
department itself or a it can hire services of an external marketing research agency.
Analytical Marketing Systems
Also known as Marketing Decision Support systems (MDSS), this is a coordinate collection of
data, systems, tools and techniques with supporting software and hardware by which an
organization gathers and interprets relevant information from business and environment and
turns it into a basis for marketing action. All the data which is generated through the other three
systems described above are stored in a data base. The storage and retrieval capability of
decision support system allows the collection and use of a wide variety of data throughout the
company. Senior managers can access the data base and continually and monitor sales, markets,
performance of the sales people and other marketing systems as well.
Q4. Explain the Henry assael model of buying decision behavior.
Ans.Henry Assael Model.
Complex buying behavior: customers who are representing this behavior are highly involved in
the purchase of the product or service. The process became complex as difference between
brands are very high. For example, customer who wants to purchase refrigerator would like to
know the meanings of defrosting, door lock, digital temperature control etc... The price of the
product usually high let me show you the comparison of three brands and significant difference
between them.
From the above example it is clear that marketer should first develop the belief about the brand,
provide the information and differentiate the company brand from others. In the above example
you can see both Akai and LG don’t have water dispenser while Electrolux have. Both LG and
Electrolux have moisture and humidity control while Akai lacks it. Customer would like to know
what these features are and how they add value to the product.
Dissonance reducing buying behavior:
The behavior exhibited by the customer when product purchase requires high involvement but
only few differences exist.
For example, customers who want to purchase CTV will not find many differences between the
brands but the price of the product and its technicality makes customer to involve more. One of
the major disadvantages of this type of behavior is customer will show post purchase dissonance
which is very difficult to control.
Variety seeking buying behavior:
When there are significant differences between the brands existing but customer will not involve
more while purchasing, marketer identify this behavior as variety seeking buying behavior. Let
us discuss the purchasing behavior of customer for biscuits. There are many varieties of biscuits
available. One can purchase salt biscuits, cream biscuits, Marie biscuits, and milk biscuits of
Britannia, Parle, ITC sun feast and others. The customer who purchased Britannia tiger earlier
may purchase Sun feast cream biscuit next time. This doesn’t mean that quality of Britannia tiger
is inferior to other brands but customer would like to try the varieties available in the market. In
this situations marketer should undertake following steps
a. The market leader should encourage customers to buy repeatedly.
b. Make the product available and visible to the customer in the shopping places.
c. The firm who are not market leader should come out with sales promotion techniques to
encourage customer to purchase the product.
Habitual buying behavior:
The low involvement between the brands and few differences between the brands leads to the
habitual buying behavior. For example spice powder marketed by MDH, Everest or MTR have
very few difference between them and customer do not search the information to purchase
particular product. Marketers whose customer represents this category should follow below listed
strategies
a. Use price and sales promotions to stimulate product trial.
b. Use more visual aspects than the wordings in the advertisements
c. Television is the better media for this type of products.
d. Use classical conditioning theory to create advertisements.
Q5. Discuss the segmentation strategy of a cement company
Ans.
A Cement company may obtain its segmentation strategy as follows:

1. Understanding needs and preferences of consumers -- Having housing, infrastructure, and


commercial construction, as demand drivers, the company analyze the needs and preferences of
consumers in these sectors.
2. Grouping customers based on their needs and preferences -- Customers with similar needs and
preferences can be included in one segment.

3. Targeting the segment that the company can best meet the needs and preferences of – The
company should target the customers, of which it can meet the needs and preferences. i.e.
customer needs higher-strength or low price.

4. Branding the commodity -- Though being a commodity product, branding is important for a
cement company. The company needs to position its brand among Architects and Builders rather
than household individuals.
5. Provide required product to meet targeted customers' needs and preferences -- Delivering up to
the expectations of the targeted segment.
6. Case study
Software pricing: issues of client billing
Infosys, one of the major IT companies in India, has developed a new method of pricing software
maintenance project. The new method is called as ‘ticket – based pricing. The customer payment will
be based on three types of client request or ticket. First, customer may request for small enhancement
in the software application. Second, customer may request for big enhancement in the software
application and third, request may be for a bug fix. Earlier the methods used for pricing were ‘fixed
price’ and ‘time and material-based pricing’. Under the ‘time and material based pricing’, customers
are billed based on the number of man-hours spent on a project, while under the fixed price, the
customer pays an agreed price that doesn’t vary with the manpower deployed on the project.
Infosys developed this new pricing strategy after examining the current pricing methods. Software
application methods become more stable after some time. If the client opted for fixed pricing and his
request for software maintenance reduced, still has to pay fixed maintenance charges. Ticket based
pricing will provide flexibility to the client. Many IT majors have been trying to decrease the
dependence of revenue growth on manpower addition. But this is for the first time such an attempt
has been made to bring a transaction-based pricing model. The new move is expected to increase the
revenue without a proportional increase in the number of employees. Contrary to this view many
industry observers still feel that fixed price or time and material based pricing provide continuous
revenue. The excess revenue available from these two methods can be used for reserves or hedging.
In case of ticket based pricing client has to negotiate with the company every time.
a. Do you think ticket based pricing will provide continuous revenue to Infosys in the long term?
Comment
b. Compare three pricing strategies discussed here and choose any one as your choice
Ans:

a)This is going to be applicable only for maintenance projects and might end up in much more
complexity in managing simple maintenance projects as there might be many categories of the
tickets. This will end up in complex financial dealing and might cost more to clients, than what
FP or TM costs are. So I think that ticket based pricing will provide continuous revenue to
Infosys in the long term with some risk of penalty for delay in fixing the bugs and some
opportunity of rewards for flexibility for the customers.
b) Comparison of TP, FP and T&M based pricing:

Ticket Based Pricing:


This is new method of pricing strategies introduced by Infosys. The customer payment will be based
on three types of client request or ticket. First, customer may request for small enhancement in the
software application. Second, customer may request for big enhancement in the software application
and third, request may be for a bug fix. Ticket based pricing will provide flexibility to the client. This
has been made to bring a transaction-based pricing model. Ticket based pricing will provide
flexibility to the client.

Fixed Pricing:
Under the fixed price, the customer pays an agreed price that doesn’t vary with the manpower
deployed on the project. If the client opted for fixed pricing and his request for software maintenance
reduced, still has to pay fixed maintenance charges.

Time and Material based Pricing:


Under the ‘time and material based pricing’, customers are billed based on the number of man-hours
spent on a project.

The ticket based pricing is favorable to customer point of view because it gives the
flexibility to customer to choose different kind of tickets depending on their needs. Every
time customer buys ticket can negotiate with the vendor.
Assignment
Marketing Management MB0030
(3 credits)
60 Marks
Set 2
Q1. Explain the relevance of VALS to Marketing
Ans.
One of the most used psychographic profiling schemes is called VALS TM. Developed by SRI
International, Inc., its first version groups the entire U.S. population into eight groups, based on
the identities they seek and implement via marketplace behaviors.
The Eight VALS TM Group: Using the self-orientation and resources dimensions, VALS defines
eight segments of adult consumers who have different attitudes and exhibit distinctive behavior
and decision making patterns. These segments are Innovators Thinkers, Achievers, Experiencers,
Believers, Strivers, Makers and survivors Innovators are successful, sophisticated, active, take-
charge people with high self-esteem and abundant resources. They are leaders in business and
government and are interested in growth, innovation, and change. They seek to develop, explore
and express themselves in a variety of ways, sometimes guided by Principle and sometimes by a
desire to have an effect or to make a change. They seek to develop, explore and express
themselves in a variety of ways, sometimes guided by principle and sometimes by a desire to
have an effect or to make a change. Image is important to them, not as evidence of status or
power but as an expression of their taste, independence, and character. They possess a wide
range of interests, are concerned with social issues, and show a cultivated taste for the finer
things in life.
Thinkers are mature, satisfied, comfortable, reflective people who value order, knowledge, and
responsibility. Most are well educated and in (or recently retired from) professional occupations,
content with their career, families, and tend to center around the home. Thinkers have a moderate
respect for the status quo institution, but they are open minded to new ideas and social changes.
They tend to base their decision on firmly held principles and consequently appear calm and self-
assured. Thinkers are conservative, practical consumers, and the universal values of
performance, service, and price are more important than person values (e.g., social and emotional
values).
Achievers are successful career ad work oriented people who like to feel in control of their live.
They value predictability and stability over risk. They are deeply committed to work and family.
Work provides them with a sense of duty, material rewards, and prestige. Their social lives are
centered on family, church, and career. Achievers live conventional lives are phonically
conservative, and respect authority and the status quo. Image is important to them: they favor
established prestige products and services that demonstrate success to their peers.
Experiencers are young, vital, enthusiastic, impulsive, and rebellious. They seek variety and
excitement, savoring the new, the offsets, and the risky. Still in the process of formulating life
values and patterns of behavior they quickly become enthusiastic about new possibilities but are
equally quick to cool. At this stage in their lives they are politically uncommitted, uninformed,
and highly ambivalent about what they believe. Their energy finds an outlet in exercise, sports,
outdoor recreation, and social activities. Experiences are avid consumer and spend much of their
income on clothing, fast food, music, movies and video.
Believers are conservative, conventional people with commitment to family, church, community,
and the nation. Living by a moral code is very important to them. As consumers, Believers are
conservative and predictable and favor American products and established brands. Their income,
education, and energy are modest but sufficient to meet their needs.
Strivers seek motivation, self-definition and approval from the world around them. They strive to
find a secure place in life, unsure of themselves and low on economic, social, and psychological
resource. Strivers are concerned about the opinions and approval of others. Money defines
success for Strivers, who don’t have enough of it and often feel that life has given them a raw
deal. Strivers are impressed by possessions, but what they wish to obtain is often beyond their
reach.
Makers are practical people who have constructive skills and value self-sufficiency. They live
within a traditional context of family, practical work and physical recreation and have little
interest in what lies outside that context. Makers experience the world by working in it, building
a house, raising children, fixing a car, or canning vegetable and have enough skill, income and
energy to carry out their projects successfully. Makers are politically conservative, suspicious of
new ideas, respectful of government authority and organized labor, but resentful of government
intrusion on individual rights. They are unimpressed by material possessions other than those
with a partial or functional pursuing pressed by martial possession other than those with a
practical or functional purpose, such as tools, utility vehicles, and fishing equipment.
Survivors tend to be chronically poor, ill-educated, low skilled, elderly and concerned about their
health. Preoccupied with the urgent needs of the present moment, they do not show a strong self-
orientation. Their chief concerns are for security and safety. Survivors are cautious consumers.
They represent a very modest market for most products and services but they are loyal to favorite
brands.
Q2. Critically analyze the product mix strategies of a beverage company
Ans.
Product Mix of Pepsi Beverages Company:
Pepsi Beverages includes 4 product lines as Pepsi, 7up, Mirinda, Mountain Dew. These four
product lines cover the majority of the market areas. These product lines are available on
different lengths and different depths to meet the demands of each type of customers.
The following table will explain each product line and its length, depth and the product mix…
Company Product Line Length Depth Product Mix
Pepsi Beverages Pepsi: 4 Pepsi Regular(5) 4
Company
-Pepsi Regular Pepsi Max(3)
-Pepsi Max Pepsi Diet(3)
-Pepsi Diet Pepsi Twist(3)
-Pepsi Twist

7up: 2 7up Regular(5)


-7up Regular 7up Diet(3)
-7up Diet
Mirinda 2 Mirinda Apple(4)
- Mirinda Apple Mirinda Orange(2)
- Mirinda Orange
Mountain Dew 1 Mountain Dew(4)
Pepsi has length of 4 which includes -Pepsi Regular, Pepsi Max, Pepsi Diet and Pepsi Twist.
Pepsi regular has depth of 5 and is available in 250 ml bottle, 330 ml can, 500 ml bottle, 1.5 liter
bottle and 2.25 liter bottle. Pepsi Max is available in 330 ml can, 500 ml bottle and 1.5 liter
bottle, having depth of 3.Pepsi diet is available in 250 ml bottle, 330 ml can and1.5 liter bottle
having depth of 3. Pepsi twist is available in 330 ml can, 500 ml bottle and 1.5 liter bottle,
having depth of 3.
Second product line is 7up. It is available in two varieties, 7up regular and 7up diet.7up regular is
available in 250 ml bottle, 330 ml can, 500 ml bottle, 1.5 liter bottle and 2.25 liter bottle, having
depth of 5. 7up diet is available in 250 ml bottle, 330 ml can and1.5 liter bottle having depth of 3.
Third product line is Mirinda; it is also available in two varieties, Mirinda Orange and Mirinda
Apple. Mirinda Orange is available in 250 ml bottle, 330 ml can, 500 ml bottle and1.5 liter bottle
having depth of 4. Mirinda Apple is available in 330 ml can and1.5 liter bottle having depth of 2.
Fourth product line is Mountain Dew. It is available in 250 ml bottle, 330 ml can, 500 ml bottle
and 1.5 liter bottle having depth of 4.
Pepsi Beverages have high consistency due to the similar type of products. They have high
consistency because their product line includes only beverages of different types. They have
targeted different markets with their wide range of products including from smaller one to large
one. Availability is good and the product is packed in different sizes to suit the need of every
customer.

Q3. What is private brand? Explain private brand strategy of a retailer


Ans.
Private brands are also called as store brands. These brands bearing the store name or store
selected vendor name. Basic ingredients of private labels are
1. It must be a unit package: It is difficult to assign a Private Label character to, say rice sold
loose from a 100 kg bag. Even though it may enhance consumer loyalty for whatever reason, it
does not qualify as a Private Label product.
2. Relabeling: The unit pack must bear only the brand name of the particular store or any other
party the store may choose for its Private Label programme. Private labels will enhance the
category profitability; increase the negotiation power of the retailer and better value creates
better consumer loyalty. All retailers cannot go for the private labeling.
Private labels can be introduced if and only if
a. The consumer is not getting the tangible value.
b. The retailer is not making the enough returns from the sale of the branded goods.
Emerging issues in private labeling:
1. The private label strategy is effective, profitable and reality.
2. The retailer must understand the price, quality and willingness to pay.
3. The retailer must have a sufficiently large base of loyal customers in the store before
introducing the private label.
4. The focus must be on consumer need and not any private agenda of the retailers
5. There must be stringent system for the private label production. Quality control is a must since
there is no else to blame.
6. Private label must work to filling gaps in the category and not target the brand leader
7. Smart manufacturers may take a private label initiative of the retailer seriously and avoid
value gaps in the categories as an impediment to growing private labels.
Q4. Explain the partner relationship management at Airtel
Ans.
Partner relationship management @ AIRTEL
Partner Relationship Management
Q5. Critically analyze the five best advertisements released in this year
Ans.
On the survey through internet I found that most of the users of net find the following Indian
television advertisements communicative, impressive and entertaining for the viewers.
1. Vodafone – Zoo-Zoo:
Vodafone has done it; they found perfect replacement for their little doggie (pug) advertisement
with Zoo-Zoo characters.
These are cute, white and slim characters having all the fun and showcasing different features of
Vodafone service. Vodafone being official DLF IPL sponsor, you can see these ads during IPL
match breaks.
Interesting part is… these are not cartoon characters but real people wearing costumes and doing
those crazy movements. It for sure is cool, cute and creative. Vodafone Zoo-Zoos win PETA
award.
2. Idea - What an Idea Sir ji?
This advertisement has a unique quality to express the non conventional use of mobile phone.
The idea of teaching children from slums reveals not only the coverage of idea cellular in rural
areas but also it targets the poor buyers. These advertisements inspire our leaders to utilize
mobile technology in campaigning for election.
Some ideas of this advertisement are not so practical like calling people with their mobile
numbers.
3. Tata Sky - Aamir Khan - Gul Panag
A good family aid, which emphasize on the recording facility in TATA SKY. It also indicates that
the family problem related to TV programs will resolve by using this feature of TATA SKY.
4. Insurance Co. - A happy father with his tiny kids who just start speaking.
This aid simply the visual version of YEH DIL MANGE MORE….
5.Thumps Up - Twin Akshay Kumar
This aid is designed for passionate people and shows the passion of Thumps Up.
Q 6. Case study

Kurkure: Indian brand in the global market.


Indian consumer food habits are different from their counterparts in the European and American
markets. Add to this each Indian region itself has special snacks. Snacks some time consumed along
with meals or tea, coffee and other beverages. Banana wafers, chaklis, samosas, namkeens are few
examples of large list of Indian snacks.
The change in the family structure is also changing the food habits in India. Increase in the nuclear
families and working women enhanced the market potential of ready to eat products and branded
snacks. Though the Indian snack market is highly fragmented with market dominated by home
snacks or those sold by local vendors, changing consumer lifestyle and health concern made them to
look for hygienic, easy to carry and nutritious branded snacks
Biscuits, potato wafers and papads are already branded and well received by the consumers. Pepsi,
the late entrant in the Indian snack market decided to find niche market. In the Year 1999, the
company launched Kurkure in the Indian Market. The product is developed in a way that it is having
local taste and western chips. Kurkure is big success in Indian market. This made Pepsi to take this
snack food to other global markets. Kurkure is already available in the Indian stores in the US and
UK and Pepsi want to expand it to more stores in the existing global markets as well as expand it to
other potential markets. According to the company, Kurkure will retain its basic flavor but will be
adjusted to suit the local requirements. Kurkure’s success in the Indian market is mainly for three
reasons namely innovative flavor, affordable price and continuous communication to consumer. To
meet the regional requirements Kurkure is launched in various flavors like Masala, chilli, green
chutney etc. Kurkure started stiff competition from ITC another FMCG major. ITCs Bingo is smash
hit in the market. To meet the competition Kurkure launched two more varieties Kurkure extreme
chili and Kurkure neem.
Success of any brand depends upon its communication program. Kurkure launched programs like
Chala change ka chakkar in which consumer can stay with brand ambassadors Juhi Chavla and Saif
Ali Khan. Kurkure also launched communication program Kurkure chai time achievers award in
which an interesting recipe will be chosen from the family and photograph of that family will be put
on one million Kurkure packs. Add to all this Kurkure constantly gave the advertisements in the
television media. Kurkure came out with novel ideas like branding the Indian trains like Kurkure
express which runs in the holiday season.
a. Explain the viability of market expansion strategy of Kurkure.
b. Critically analyzes the consumer behavior towards snacks products.
Ans:
a)
Success of any brand depends upon its communication program. Kurkure launched programs like
Chala change ka chakkar in which consumer can stay with brand ambassadors Juhi Chavla and Saif
Ali Khan. Kurkure also launched communication program Kurkure chai time achievers award in
which an interesting recipe will be chosen from the family and photograph of that family will be put
on one million Kurkure packs. Add to all this Kurkure constantly gave the advertisements in the
television media. Kurkure came out with novel ideas like branding the Indian trains like Kurkure
express which runs in the holiday season.
The move will also bring enhanced brand recall for Kurkure from regular
commuters.
Kurkure is launched in various flavors like Masala, chilli, green chutney etc. Kurkure started stiff
competition from ITC another FMCG major. To meet the competition Kurkure launched two more
varieties Kurkure extreme chili and Kurkure neem. So the wide range of Kurkure provides choice
for every customer.
Kurkure is big success in Indian market. This made Pepsi to take this snack food to other global
markets. Kurkure is already available in the Indian stores in the US and UK and Pepsi want to
expand it to more stores in the existing global markets as well as expand it to other potential
markets. According to the company, Kurkure will retain its basic flavor but will be adjusted to suit
the local requirements.
Since the Kurkure has option to adjust with local requirement with good communication program
and also the availability is also good. So no doubt it will be a great success in the global market.
b)
The change in the family structure is also changing the food habits in India. Increase in the nuclear
families and working women enhanced the market potential of ready to eat products and branded
snacks. Though the Indian snack market is highly fragmented with market dominated by home
snacks or those sold by local vendors; changing consumer lifestyle and health concern made them to
look for hygienic, easy to carry and nutritious branded snacks.