NAME: Dishita Jain

ROLL NUMBER: 13-1439

REGISTRATION NUMBER: 13-1439
SPECIALIZATION: Finance
BATCH: 2020-2022
INSTITUTION: Balaji Institute of International Business (BIIB)
SEMESTER: 1
SUBJECT NAME: Marketing Management
ASSIGNMENT NUMBER: 2
SUBMISSION DATE: 13th October 2020
TOTAL NUMBER OF PAGES WRITTEN:
1. Explain the Segmentation-Targeting-Positioning (STP) strategy of a FMCG company
during Covid-19.
Positioning – competitors
2. Discuss the significance of branding. What are the different branding strategies
marketing organizations are adapting to establish their product portfolio?
3. Describe the levels of market competition with suitable examples. Explain a model of
strategy formulation followed by marketing organizations.
4. Elaborate the CBBE model of Brand Equity. How can we differentiate between
luxury brands, premium brands, umbrella brands, individual brands and private label
brands?
5. State the criteria for effective segmentation. Under what circumstances brand
extension can be effective for marketing of products?
Ans:- Segmentation, targeting and positioning (STP) is a strategic approach used in
Modern Management. It is one of the most commonly applied marketing models in practice.
The STP model is useful when creating marketing communications plans since it helps
marketers to priorities propositions and then develop and deliver personalized and relevant
messages to engage with different audiences.

i. SEGMENTATION: Segmentation means to divide the marketplace into parts, or

segments, which are definable, accessible, actionable, and profitable and have a
growth potential. A company would find it impossible to target the entire market,
because of time, cost and effort restrictions. It needs to have a “definable segment- a
mass of people who can be identified and targeted with reasonable effort, cost and
time. Segmentation allows a seller to closely tailor his product to the needs, desires
uses and paying ability of customers. It allows sellers to concentrate on their
 resources, money, time and effort on a profitable market, which will grow in number,
usage and value.
There are basically 4 types of marketing segmentations:
a) Demographic
b) Psychographics
c) Behavioural
d) Geographical

ii. TARGETING: A target market refers to a group of potential customers to whom a

company wants to sell its products and services. This group also includes specific
customers to whom a company directs its marketing efforts. A target market is one
part of the total market for a goods or service. Identifying the target market is
essential step for any company in the development of a marketing plan. Not knowing
who the target market is could cost a lot of money and time for a company. Part of the
success of selling a goods or service is knowing to whom it will appeal and who will
ultimately buy it. Business spends lots of money and time to define and monitor its
target market. Target markets are categorized by age, location, income and lifestyle.

iii. POSITIONING: market Positioning refers to the consumer’s perception of a brand or

product in relation to competing brands or products. It is the process of establishing
the image or identity of a brand so that consumers perceive it in a certain way. The
Positioning of a brand or product is a strategic process that involves marketing the
brand or product in a certain way to create and establish an image or identity within
the minds of the consumers in the target market. Market positioning of a brand or
product must be maintained over the life of the brand. For this it requires ongoing
marketing initiatives intended to reinforce the target markets perception of the
product.
2. Discuss the significance of branding. What are the different branding strategies
marketing organizations are adapting to establish their product portfolio?

Answer 2

BRANDING has been around for quite a long time as a way to recognize the products of
one producer from those of another. A brand is a particular term that may incorporate a
name, sign, symbol, design or a combination of these, with an intention to distinguish goods
and services of a specific seller. Indeed, the word 'brand' is derived from the Old Norse word
brander, which signifies 'to bum'. Branding assists with creating customer loyalty and it is
publicized by sellers under their own name. A decent brand builds up a corporate picture.
Generally, customers lean toward brands as they can undoubtedly separate the quality.

THE SIGNIFICANCE OF BRANDING

Shopping Behavior

Emotional Connection

Habitual Buying

Strategic Options

1. Shopping Behaviour: - In most consumer goods categories, buyers must pick among
an enormous number of products offering comparative attributes and advantages.
Particularly for low-involvement, low-priced products like toiletries and snack
nourishments, scarcely any individuals are persuaded to invest time and effort
looking at options. Branding simplifies shopping for these products, empowering
purchasers to rapidly and proficiently pinpoint what they need. Alternately, it
decreases the probability of being disappointed by or wasting money on an
unfamiliar product.

2. Emotional Connections: - The objective of branding strategy is to create brand

equity, the worth that marketers add to their product's basic features and functions.
Often this value appears as a brand character and picture to which consumers feel an
emotional connection. For instance, the Disney brand instills the entirety of its
products with a wholesome, child-oriented personality that separates them from other
diversion choices. Additionally, Hallmark sells more than greeting cards; its brand
image passes on family love and harmony.
 3. Habitual Buying: - In a wide scope of product categories, consumers settle on their
purchase decision dependent on propensity. For instance, when purchasing a staple
like American cheese or a convenience good like takeout coffee, many people
basically pick whatever they purchased last time. By making products effectively
recognizable, branding assists with strengthening ongoing purchasing behavior. Of
specific significance to marketers: it is difficult for competitors to break a well –
established habit, even with price discounts or other promotions.

4. Strategic Options: - Marketers have various alternatives while choosing a branding

strategy. One approach is to connect brand identity to the manufacturer of the
product. Called manufacturer branding, this is most common when the organization
is generally known and all well respected in the marketplace. Small business often
picks the elective alternative of private-label branding. This typically includes
associating the brand with the store that sells it. A private label brand may likewise
exploit another distinctive component, similar to the area where it is produced.

THE DIFFERENT BRANDING STRATEGIES MARKETING ORGANIZATIONS ARE

ADAPTING TO ESTABLISH THEIR PRODUCT PORTFOLIO ARE AS FOLLOWS: -
1. Creating a sub – brand: - While devising a branding strategy, marketers may decide to
make altogether a new brand for the product. Simultaneously, marketers may
consolidate the new brand with a previously settled brand. This helps assemble a fast
relationship of the new brand and furthermore causes the new brand to en-cash the value
worked by a previously settled existing brand. The current brand which brings forth the
Sub-Brand is the Parent Brand.

2. Brand Extension: - At the point when the firm uses an established brand to present
another product, the technique is alluded to as Brand Extension. Brand Extension falls
into two classifications – Line Extension OR Category Extension. The existing brand
which brings forth the Line OR Category Extension is the Parent Brand.

a) Line Extension: - Line Extension alludes to the parent brand covering another
product inside a similar product category. The new product in this can be another
flavour, another tone or even another size bundle. Significantly, the new product
ought to be in a similar product category.

E.g.: - Nestle Maggie original product has seen many line extensions.

b) Category Extension: - At the point when the parent brand is utilized to enter
another product category, out and out, it is alluded to as a Category Extension.

E.g.: - BMW, Honda which are in both 4 and 2-wheeler mobility business carry the
same brand in both the categories.

3. Licensed Product: - A product whose brand name has been authorized to different
manufacturers to make the product. For this situation, the proprietor of the brand gets paid a
license fee for utilizing the brand. In turn, the brand owner decides some basic quality
models to be met to sell products under the brand name.
Q.3 Describe the levels of market competition with suitable examples. Explain a model of
strategy formulation followed by marketing organizations.

Answer 3-

Levels of market competition –

GENERIC COMPETITION-
Competition among products that are different but solve the same problem or provide the
same benefit or utility. In order to remain competitive in the light of generic competition,
businesses are typically expected to minimize costs and expand their distribution channels.
For example, such as competition between tape and glue would be generic competition as both are
solving the same purpose/ have the same benefit/utility.

FORM COMPETITION
Competition among product or service that serves the same purpose. Form competition includes
only products or services of the same product type. The product or services that serve the same
purpose. Product form level - marketing activities directly aimed at similar competitors
For example, for transportation we can use either of the following, i.e. Road, Railway, seaway,
airway.

INDUSTRY COMPETITION
Competitors who make the same products or class of products but at a very different price
points/ Quality levels/ Features etc. Not only do individuals companies compete with each
other within the industry, they also compete with other sectors, and the industry competes
with its customers and suppliers. All businesses have rivals and, in some situations, industrial
rivalry is so strong that corporations have to compete for the company of potential customers.
Some players have a negative view of rivalry, but it's just the truth of doing business. In this
level, competitors make the same product or class of product but at a different price points,
quality, attributes, benefits etc.
For Example, Car industry, mobile phone industry, Refrigerator industry, QSR industry etc.

BRAND COMPETITION
Competition who offer similar products and services to the same customer at the similar
prices. The dynamics of the market continues to evolve at a very rapid pace due to the ever-
growing Brand Rivalry and, thus, the brands have not only not to survive but to succeed, as
well as to know the strengths and weaknesses of the brands that compete and plan marketing,
branding and the overall business strategy. Brand Rivalry is a competition between
companies selling similar goods or services in the same target market in which companies
promoting differentiated products also grow and compete on the basis of brands or labels.
Knowing and recognizing the brand's rivals is one of the main steps in preparing and
executing an effective business strategy.
 Example, Surf excel of HUL v/s Airtel of P&G, HUL Wheel v/s P&G Tide, Samsung v/s LG TVs.

MODEL OF STRATEGY FORMULATION FOLLOWED BY MARKETING

ORGANIZATIONS.

Ansoff’s growth vector matrix is used for analysing the different strategic directions an organisation
can pursue.

Ansoff Matrix, also called the product market expansion Grid.

Is a tool used by firms to analyse & plan their strategies for growth.

Igor Ansoff’s product market growth matrix helps business decide their product and market growth
strategy on the basis of the following –

PRODUCTS

EXISTING NEW
MARKETS

MARKET PENETRATION PRODUCT DEVELOPMENT EXISTING

MARKET DEVELOPMENT DIVERSIFICATION NEW

STRATEGY MEANING OTHER POINTS
Market To sell existing Market penetration can be achieved by
Penetration products into  Increasing market share
existing markets  Increasing product usage/utilities
 Increasing frequency used
 Increasing quantity used or
 Finding new application body current uses.
Penetration, i.e. making increased sales to present customer, without
changing product in a major way, may require greater spending on
advertising or personal selling.

To overcome competition in a matured market the companies should have

(a) An aggressive promotional campaign and
(b) A pricing strategy designed to make the market unattractive for the
competitors.

Market To sell existing They strategy may be achieved through

Development products int new  New geographical market
markets  New product dimensions of packaging
 New distribution channels
 Different pricing policy to attract different customers,
 Creating new market segments.

Product To introduce new The firm seeks growth by offering modified or new product to current
Development products into market.
existing markets Product development can be achieved by
 Adding products teacher product refinement,
 Developing a new generation product or
 Developing new products for the same market.

This strategy may require the development of new competencies and

requires the business to develop modified products which can appeal to
existing market.

Diversification To sell new It involves starting up or acquiring business outside the company’s current
products in new production market.
markets This strategy is risky because it does not rely on either the company’s
successful product or its position in already established markets.
Q 4. Elaborate the CBBE model of Brand Equity. How can we differentiate between
luxury brands, premium brands, umbrella brands, individual brands and private label
brands?

Answer – 4
BRAND EQUITY-
Brand Equity is the added value endowed to products and services with customers. It may be
reflected in the way consumer think, feel and act with respect to the brand, as well as in the prices,
market share, and profitability its commands.
Marketers and researchers use various perspectives to study brand equity. Customer-based
approaches view it from the perspective of the consumer, either an individual or an organization and
recognize that the power of a brand lies in what customers have seen, read, heard, learned, thought,
and felt about the brand over time.
Customer-based brand equity is thus the differential effect brand knowledge has on consumer
response to the marketing of that brand. A brand has positive customer-based brand equity when
consumers react more favourably to a product and the way it is marketed when the brand is
identified than when it is not identified. A brand has negative customer-based brand equity if
consumers react less favourably to marketing activity for the brand under
the same circumstances. There are three key ingredients of customer-based brand equity.

1. Brand equity arises from differences in consumer response. If no differences occur, the
brand-name product is essentially a commodity, and competition will probably be based on
price.
2. Differences in response are a result of consumers’ brand knowledge, all the thoughts,
feelings, images, experiences, and beliefs associated with the brand. Brands must create
strong, favourable, and unique brand associations with customers, as have Toyota
(reliability), Hallmark (caring), and Amazon.com (convenience and wide selection).
3. Brand equity is reflected in perceptions, preferences, and behaviour related to all aspects of
the marketing of a brand. Stronger brands earn greater revenue.

The challenge for marketers is therefore ensuring customers have the right type of experiences with
products, services, and marketing programs to create the desired thoughts, feelings and brand
knowledge. In an abstract sense, we can think of brand equity as providing marketers with a vital
strategic bridge from their past to their future. Marketers should also think of the marketing dollars
spent on products and services each year as investments in consumer brand knowledge. The quality
of that investment is the critical factor, not necessarily the quantity (beyond some threshold
amount). It’s actually possible to overspend on brand building if money is not spent wisely.
Customers’ brand knowledge dictates appropriate future directions for the brand. Consumers will
decide, based on what they think and feel about the brand, where (and how) they believe the brand
should go and grant permission (or not) to any marketing action or program.

DIFFERENTIATION BETWEEN LUXURY BRANDS, PREMIUM BRANDS, UMBRELLA

BRANDS, INDIVIDUAL BRANDS AND PRIVATE LABEL BRANDS.

LUXURY BRANDS - The Product and services of luxury brand have to produce world records and
excellence, over a long period of time and at the highest quality standards. Luxury brands have to
satisfy the desire for elevated status. Luxury brands need a high degree of discipline. These brands
are exclusive in terms of their price, availability, and brand communication. They have exclusive
showrooms and these showrooms are in limited posh areas. Luxury brands have to keep their status
high as becoming ordinary is biggest enemy for these brands. Example, Rolls Royce, Sabyasachi,
etc.

PREMIUM BRANDS- Premium Brand are the ones that give you the best features at the best value.
These brands provide the best features and quality for which consumers are ready to pay high
prices. Examples, Adidas, Mercedes.

UMBREALLA BRANDS- Umbrella Branding is a marketing practice involving the use of a single
brand name for the sale of two or more relatable products. Umbrella branding is mainly used by
companies with a positive brand equity. Example, Apple sells iPad, iPhone, Apple Watch, Mac
Book, Mac Book Air, etc.

INDIVIDUAL BRAND- Individual Branding is the type of marketing strategy where individual
products of a company have their unique brand name. Individual Branding is also known as MULTI
BRANDING, Individual Product Branding, and Flanker Brands. The advantage of this branding is
that each product had has an image and identity that is unique. This facilitates the positioning of
each product, by allowing a firm to position its brand differently. Example, P&G, Hindustan
unilever limited, etc.

PRIVATE LABLE BRANDS - A Private brand is manufactured for and sold under name of a
specific retailers, competing with Brand-name product. Private label brands are products sold by a
retailer with its own packing, but manufactured by a third party. The big advantage of private label
brands is that they do not include specific marketing costs. Private branding is a cost-effective way
to produce a product without investment into large manufacturing facilities, designers, quality
assurance personnel, or a specialized supply chain. By using outside manufacturing help a retailer
can offer a wide range of private label goods that appeal to both cost-conscious shoppers as well as
premium-product consumers.

Luxury Premium Umbrella Individual

Private
Brands Brands Brands Brands
Label
Brands
Limited Limited Multiple Selected Product
Products products products products products designed for
offered. choice. under the one from same specific
roof. brand name peoples or
and segment.
category.
Focused on Culture and Wide range of Product Product
 creating Tradition are products introduced introduced
Purpose luxury the part of the under the sub- for for some of
products brand. brand to fulfil specified special
which are the needs & category ex. category.
often linked wants of user. for Men &
with status Women.
symbol.
Rich quality High quality Sometime Market Designed for
Quality with higher with higher high- segment is specific
degree of degree of sometimes pre-defined. category of
product product value. low & market.
value. Medium
depends upon
price.
Service Very-High Comparatively Comparatively Probable Considerable
Quality low as low as same as and High.
service compare to compare to umbrella
provided luxury brands. Umbrella brands.
brands.
Narrow- Broad- General Specified Designed for
Target only a small whoever can population can population specific
Audience percentage justify easily afford can afford category of
of the rationally and the brand. the brand. market.
general financially the
population added benefits
can afford has access to
the brand. the brand.
5. State the criteria for effective segmentation. Under what circumstances brand
extension can be effective for marketing of products?
ANSWER – 5
MARKET SEGMENTATION-
Companies cannot connect with all customers in large, broad, or diverse markets. They need to
identify the market segments they can serve effectively. This decision requires a keen understanding
of consumer behaviour and careful strategic thinking about what makes each segment unique and
different. Market segmentation divides a market into well-defined slices. A market segment consists
of a group of customers who share a similar set of needs and wants. The marketer’s task is to
identify the appropriate number and nature of market segments and decide which one(s) to target.
Identifying and uniquely satisfying the right market segments are often the key to marketing
success.

THE CRITERIA FOR EFFECTIVE SEGMENTATION

It is very important to divide the market proper Segments, Not all segmentation schemes are valid
and useful. Effective Segmentation decision must constitute the following steps.

MEASURABLE

SUBSTANTIAL

ACCESSIBLE

DIFFRENTIABLE

ACTIONABLE

 Measurable. The size, purchasing power, and characteristics of the segments can be
measured. Good market research should be able to find the size of market so that proper
marketing strategies could be made.
 Substantial. The segments are large and profitable enough to serve. A segment should be
the largest possible homogeneous group worth going after with a tailored marketing
program. A maket segment is said to be efficient when there is clearl identification about the
characteristics of segments.
 Accessible. The segments can be effectively reached and served. In a market segment, it is
important to consider how the group might be accessed and, crucially, whether this falls
within the strengths and abilities of the company’s marketing department.
  Differentiable. The segments are conceptually distinguishable and respond differently to
different marketing mix elements and programs. If married and single women respond
similarly to a sale on perfume, they do not constitute separate segments.
 Actionable. Effective programs can be formulated for attracting and serving the segments.
The market segment must have practical value – its characteristics must provide supporting
data for a marketing position or sales approach, and this in turn must have outcomes that are
easily quantified, ideally in relation to the existing measurements of the market segment as
defined by initial market research.

BRAND EXTENTION-
When a firm uses an established brand to introduce a new product, the product is called a brand
extension.
Brand extension is a marketing strategy where the company makes use of its existing established
brand name for a new product or a new product category.

IMPORTANCE OF BRAND EXTENSION-

 Brand Extension is extension in the usage, new product categories, of an existing brand
name. This segment may be related to the current product categories or may not be related to
them.

 It may be helpful to expand a brand beyond its core product category in the sense that it
helps assess possibilities in the product category, defines capital needs, decreases risk, and
evaluates the value and popularity of the brand.

 Extension can help reduce launch cost.

 Extension also can avoid the difficulty and expenses of coming up with new name.

 Brand Extension can renew interest and liking for the brand and benefit the parent brand by
expanding market coverage.

METHODS OF BRAND EXTENSION

 Repositioning the same product in a different form.

 New distributors, franchise, or relationships.

 Brand name or design change.

 Price changes.

 Renewed features such as distinctive change like taste, ingredients, components.

EFFECTIVE BRAND EXTENSION FOR MARKETING OF PRODUCTS

Marketers must judge each potential brand extension by how effectively it leverages existing brand
equity from the parent brand as well as how effectively, in turn, it contributes to the parent brand’s
equity.

 A successful extension cannot only contribute to the parent brand image but also enable a
brand to be extended even farther.

 Successful brand extensions occur when the parent brand is seen as having favourable
associations and there is a perception of fit between the parent brand and the extension
product.

 There are many bases of fit: product-related attributes and benefits, as well as nonproduct-
related attributes and benefits related to common usage situations or user types.

 Depending on consumer knowledge of the categories, perceptions of fit may be based on

technical or manufacturing commonalties or more surface considerations such as necessary
or situational complementarity.

 High-quality brands stretch farther than average-quality brands, although both types of
brands have boundaries.

 A brand that is seen as prototypical of a product category can be difficult to extend outside
the category.

 Concrete attribute associations tend to be more difficult to extend than abstract benefit
associations. Consumers may transfer associations that are positive in the original product
class but become negative in the extension context.

 Consumers may infer negative associations about an extension, perhaps even based on other
inferred positive associations.

 It can be difficult to extend into a product class that is seen as easy to make.