met

in 1957, when Knight was an undergraduate student

and middle-distance athlete at the

University of Oregon (which was kaown for having the best track progarn in the country)
and Bill Bowerman (Boweman), the athletics coach. In the early 1960s, when Knight was
doing his MBA at Stanfod University, he submitted his marketing research dissertation
on the US shoe manufacturing industry. His assertion was that low cost, high quality
mnning shoes could be imported from labor-dch Asian countries Iike Japan and sold in the
US to end Germany's domination in the industry.
Il 1962, while on a world tour, Knight met the management of the Onitsuka
Company (Onitsuka) of Japan, which manufactured high quality athletic shoes rmder the
brand name 'Tigef. He arranged for these shoes to be imported to the US for sale under
the name 'Blue Ribbon Shoes' (BRS) (A name he thought up when the management of
Onitsuka asked him about which company he represented. BRS became the forerunner of
Nike). In late 1963, Knight received his first shipment of200 Tiger shoes. In 1964, Knight
and Bowerman formed a partrership, with each of them contoibuting $500 and BRS
fomally came illto being. Knight did not have the money to do any formal advertising for
his products.
Instead, he crafted his 'grassroots' philosophy of selling shoes. He believed in going
out to the atlletes who constituted his main market, to se[1 his shoes. The frst shoes were
sold from the basement of Knight's house and the backs of trucks and cars at local tmck
events.
Since the 1980s, marketing has played a very important role in Nike's colporate
strateg/. Knight realized tlat sa\ryy advertising would go a long way in helping the brand
reach out to the taxget market and also create a unique positioning for Nike. Personal
marketing played an important role in Nike's maxketing efforts ight from the early years..
Nike believed in the theory ofthe marketing pyramid. Celebdty Endorsements had always
been an important part of Nike's maxketing strates/. Thowh Nike was getrerally thought
to be a successful marketing company, faced several criticisms for its marketing
activities. Some ads, foi instance, did not go down well with the target market. One such
ad featured Joanne Emst, an America[ hi-athlete and addressed American women for the

it

Reg. No.

MBA DEGREE EXAMINATION, NOVEMBER 2015

Scond Semester

MB132O3 _ MARKETING
(For the candidates admitted flotn the academic year

a- (Answer should not exceed

150

words)

b. (Answer should

not exceed 75 words)

What are the reasons behind the success of one

(5 Marks)

oftle

most popular brands in the world?

2014 onwards)

Max. Marks: I00

Answer

ALL

Questions

PART-A(10x2=20Marks)
(Answer should not exceed 30 words)

1. Differefltiate the marketing &om selling.

2. How do you define marketing stateg/?

3. What is customel relationship management?

4. How to caphue value from the customer?
5. What is bmnd equity?
6. Write a short note oII product life cycle.
7. Wlat is value delivery network?
8. Wdte a short rlote on vertical marketing systems.
9. List out tlle components ofmarketing communication mix.
10. What is integated marketing communication?

PART-B(5x10=50Marks)
(Arswer should not exceed 150 words)
I 1.

a. Briefly

discuss the uuderstanding

of

a maxket place and customer needs.

(oR)

b. How to desEn
12,

a customer driven

marketing shategy?

a. Identiry the stlates. for cultiyating customer relationships.

(oR)

(10 Marks)

What are tlle elements that conhibuted to the success ofthe bmnd? Eaxly marketing efforts
of a highly successful sports-goods company. - Comment

Time: Three Hours

[Ist time.
Despite criticisms against the company, there was little argument on the point tlat
Nike, was one of the best recognized bftnds in the world, notably in the area of sports. So
popular was the bmn4 that some analysts called Nike, the 'Goddess of Marketing'. Knight
attributed Nike's success to its dedicatioD to sport.
"Part of our success is that we know who we are. We defured ourselves. It is our job
to provide inspiation and aspiration for everyone irterested in sports in the world. We
belieye tlat everyone who has a body is an afilete," said Knight.

201

b. How

does customer relationship management help companies develop customer insights

and deliver supedor customer value?

13. a- Discuss tlle brand developmetrt shategies marketers use to deyelop brands. Provide an
example of each stEtery.

(oR)

b. How does positioning stmtegr

help the company? Illustrate with examples.

14. a. Bdefly discuss the nature and importance ofmarketing channels.

(oR)
23NA2MBr 32{13

23NA2MBI32{t3

b.
15.

Discuss the cunent market scenado ofE-commerce marketing practices with examples.

a. Wlat

are the role and functions

ofpublic relations within

products, save costs, a.nd promote environmental conservation.

For a company like Unilever, continuous improvisation and innovation in packaging
were necessary to compete ffectively in a highly competitive FMCG industry. Packaging
was among the few factoN that differentiated its products from that of its competitors.

an organization?

(oR)

b. Are

consumer's perceptions
prcducts counties of origin?

variants, inqease demand for existing products, launch premium products, reposition

of products affected by the information conceming the

a. (Answer should not exceed

150 words)

(10 Marks)

How packaging can help a company to differentiate its products? Explain how packaging
can be used as a marketing tool.

PART-C(2x15=30Marks)
Case study:

b. (Answer

should not exceed 75 words)

(5 Marks)

Examine how the adverse impact of packagilg on the environment can be reduced.

16. Utrilever's Packagitrg Practices - InnovatioDs atrd ltrsigbts

The case examines how Anglo-Dutch retail giant Unilever Group used imovations in
packaging to differentiate its products. It explains how Unilever used packaging as a
marketing tool to launch, reJaunch, reposition and increase demand for its Foducts and
athact new customers.
Several instances where innovative packaging helped Unilever increase revenues of
its prcducts are discussed in the case. At the same time, Unilever tried to minimize the
impact of its paakaging on the envtorunent by adopting rccycled materials, inhoducing
concentated ve$ion ofdetergents and also by using fewer colotrs on its labels.
At the 21st DuPont Awards for Packaging Imovation presented in May 2009, AngloDutch multinational corporation Unilever Group's (Unilever) Bertotli Pasta Sauce
Pouches won an award in the category of'Enhanced Perfonnance and Resource and
Energy Optimization.'
To store the sauce, Unilever had replaced the glass jars used earlier with stand-up
pouches which used 7002 less material.
On selecting Unilever for the award, DuPont said, "Now microwavable dght in the
pouch, this new packaging offers significa.nt consumer benefit and ease of use versus jars
and offers retail benefits through easier handling and equivalent shelf tife. The benefits of
tmnsport efficiency are substantial. One truckload of unfilled pouches equals 25
truckloads of unhlled glass jars."
With revenues of 40.523 billion for the fiscal year ending December 2008, Unilever
was one of the largest cortswfler product aompanies in the world. It had a presence in
product categories like foods, beverages, and cleaning agents and these were sold in morc
than 150 countries aqoss the world. Operating as it did in a highly competitive
environment, Unilever realized that it was essential to differentiate its products.
With several products to choose fiom with similar qualities, packaging assumed
greater importance. Unilever believed thai its irmovative packaging pmctices enabled its
products to stand out from among the several similar products of its competito$.
Unilever's history dales back to 1872, when two Dutch family businesses -Jurgens and
Van den Bergh - sta ed producing margarine on a mass scale. The two businesses
competed with each other. At around ttre same time, in 1885, William aad James Lever, in
the IIK, larmched the world's frst packaged laundry soap - Sunlight, thrcugh their
company Lever and Company.
Unilever considered packaging to be the visible face of the company's brards. It
considered packaging to be a tool of coEmunication and dispersing fuformation. It looked
at packaging changes holistically, considering their impact on costs, production,
durability, eto.
Unilever used innovations in packaging to ddve its message about the athibutes of
the product to the consumers. It used packaging as a marketing tool to launch new prcduct
23NA2MR' 3'03

17. Nike - The'Goddess of Marketing'

The case discusses the elements of Nike's marketing stratery. The roots ofNike, one
of the most popular brands in the world, can be tmced back to the 1960s, when Phil
Knight and Bill Bowerman cotlabomted to provide Americar runners with better quality
runaing shoes. With insufficient money to indulge in formal advertising, the partners
resorted to selling shoes at local tack meets from the backs oftrucks. Growing ftom such
humble beginnings, Nike's marketing slratery became one of most successful marketing
stories in the world of business. The company was especially known for its well
recognized 'swoosh' logo and strong punch lines. The case also discusses the criticisms
teveled at Nike on account of its marketiog stategies. In June 2003, Phil Knight (Knigho,
the founder and CEO of Nike Inc., (Nike), rcceived the "Advertiser ofthe Year" award, at
the 50d Cannes lntemational Advertising Festival, one of the major arulual advertising
events in the world. It was a historical moment because Knight was tlle first person to win
the award twice (He had received the award in 1994 atso). Speaking on the occasiorL
Knight said, "Ifs the most prestigious award in tlle world advertising industry and I feel
prctty good about it. Espeaialty, winning it for the second time. It is a huge honor for the
company."
Analysts said tlat Nike had come a long way since it began operations in the 1960s.
In the early years of the business, Knight did IIot betieve in advertising or marketing. He
prcfered instead, to rcly on word-of-mouth publiciry among athletes. This served Nike
well enough for some yeaxs. However, in the tate-1980s, Nike was overtaken in sales by
competitor Reebok4, which introduced tlainillg shoes designed especially for women (who
had become more frfiress conscious by that time).
In a bid to recapture market share, Nike intoduced several new models of shoes
designed for different sports. In addition to introducing new shoes, Knight also realized
the importance of marketing and began to set aside a significant part of corporate revenues
for advertising and marketing. By the 1990s, Nike was one of the best advertise$ in the
world, Nike was well known for its uoique soullirl advertisements (ads), which, analysts
said, appeated to viewers' emotions rather than their rationality. Most of the ads featured
cetebrities from different sporting arcas. The company was also attuned to the tastes and
sensibilities of the public and tded to oeate ads that would appeal to the maximum
number ofpeople.
In 2003, Nike was the market leader in sports goods and one of the most popular
brands in the wortd. The company's logo, the 'swoosh' was thought to be one of the best
logos evel designed and had a high degee of recall value. Analysts said that the
recognition of the 'swoosh' rivaled the recognition levels of the Stars and Stripes of the
American Flag or the Golder Arches logo of McDonalds. The future co-founders of Nike
23NA2MBr32lt3