Marketing Management

June 2021 Examination

Q1. As a newly appointed Product Manager by Balaji wafers, you are asked to develop
New Product Planning for new flavor of potato wafer. How would you develop new
product planning process? (10 Marks)

Answer 1.
Introduction
The main discussion is about a new product launching of a well-known company of food
products or edibles. The name of that particular company is Balaji wafers private limited. The
well-known company, Chandubhai Virani is the founder and director of Balaji Wafers Private
Ltd. The days of struggle for Chandubhai dates back to 1972. At that time, rains were scarce
and farming was becoming tough with every passing day. Looking at the worsening
conditions, their father who was an ordinary farmer gave three of his sons – Meghjibhai,
Bhikhubhai and Chandubhai Balaji. In 1984, they coined their brand name „Balaji‟. The
premises of Balaji Wafers Private Limited in the village of Vajdi (Vad) around 20 km from
Rajkot, has a small Balaji temple in the forefront of the 50-acre factory area. It is a proof of
the faith that the owners have in Lord Balaji, from where the brand name „Balaji‟ was
derived.
Concepts and Applications
The first step in the product planning process is simply acknowledging the customer‟s
wants/needs and then articulating the market needs. This simply provides the basis for
pricing, advertisement, marketing strategies and distribution. The managers start by first
coming together to generate new ideas about customer needs and identify existing problems
in the market. By doing this, they will simply evaluate competitors so as to note their shares
and weaknesses in the very market and lastly note areas of advantage that they can exploit. It
involves both qualitative and quantitative market research.
Quantitative market research survey can be done through communication lines over phone
calls that predict the performance of the product in the market and propose consumer
segmentation in relation to brand dimensions that differentiate brands to decide on product
packaging, development, positioning, advertising and brand image.
Qualitative market research can be done through interviews to identify consumer behaviors,
the needs that govern these behaviors, and their relationship to the product. Both method
involves product planning is a method or process of creating and manufacturing an idea or an
innovation of a product, according to which the product is introduced or launched in the
market. As the company, Balaji Wafers Private Limited is going to launch its new flavor of
potato wafers, then they must have to evaluate few points in their minds, which should be in
favor of both the company as well as its respective consumers or customers, like the raw
materials that must be brought will be low in price should have provision to buy ingredients
like potato and onion directly from farmer it helps to keep price low as provide profit directly
to farmers. The next thing is to maintain its quality of materials at a reasonable price, to
whom the products are to be sold, most of the wafers or chips and snacks contain ingredients
like onion powder as well as garlic powder, at that time, the Jain customers or consumers are
not able to eat such items, so the company should have to take a same variant of the new
product or the new flavor of the potato wafer, that must be in the category of Jain serving, in
order to make the Jain customers happy too, and then another thing that is important
regarding planning process is to fix the price. The wafers or the chips which are in the
category of snacks, have a huge competition in the market, as there are huge varieties or
variants of chips are available in the market, and it creates confusion among the customers or
in the mind of the customers, as they cannot even make sure that which one they choose, at
that time they choose that product, which is low in price among all the existing others. So, the
company should have to introduce the new product at a low price in comparison to all the
previous existing products in the markets respectively. And then the main factor that comes
forward is the process of marketing as well as the promotional process. And the entire sales,
as well as profit-making, depend on this process respectively. Apart from colour, appearance
and taste, what sets apart the best wafers are the crunch when one bites into them. The
product will surely urge one to buy a pack with an irresistible „crunch‟.

Conclusion
Balaji brand is not an outcome of intensive marketing and advertising campaigns but has
been created solely by the importance the company places on delivering quality and
affordable products and various CSR initiatives that it has undertaken, making it a classic
example of „word of mouth‟ promotion. The product not use artificial flavours in its snacks
and prefers to use local spices which give a made-at-home taste to its snacks.
Q2. Health and Nutrition Start-Up, Habbit makes consumer debut with a range of
innovative & delicious Products. Habbit Wise Creams are the lowest calorie ice creams
in the world. Every serving has less than 50 calories, which is less than half an apple.
Available in 6 gourmet flavours such as Blueberry Crumble, Salted Caramel, Lychee
Blush, etc. Wise Creams contain zero added sugar and are keto + diabetic friendly.
Prepare an appropriate Segmentation Strategy for the new launch. Considering that
they have entered in consumer market for the first time, how should the brand be
positioned in the market? (10 Marks)

Answer 2.

Introduction

With this study, the name of new startup company is Habbit which signify nutritious food
items with no added of sugar have zero side effect on health to their respective consumers.
Main focus of company is to serve equally to every class whether higher or middle class
nutritious and healthy food at affordable price. The best innovative product of the company is
the ice cream with zero calorie which contains ingredient of natural fruit pulp with several
flavor like blueberry crumble, salted caramel, lychee, blush. Appropriate strategies required
in order to launch product at its full capacity.

Concepts and Applications

A majority of Indians - 71 per cent, feel that their health is worse off today than pre-COVID-
19 due to broken eating and fitness habits. They cite a lack of time, poor taste of healthy
products, and confusing technical details of healthy products exaggerated by the inability to
make a choice among the various options as their biggest obstacles to better health. Habbit is
making everyday nutrition simple, enjoyable and rewarding. Habbit's goal is to be the brand
of choice for a community of people aspiring to lead healthier lives. New products launched
today are designed to integrate seamlessly into modern lifestyles rather than a supplement or
optional add-on to it, starting with the easiest first step - daily nutrition.
Habbit's products do not require a behavioural change to get started with and their fresh
design and packaging with no technical jargon make them approachable, even for the
uninitiated. Habbit's products are delicious and directly address the needs of the majority for
healthy but tasty products. Poor taste of healthy products has inhibited the majority from
including them in their daily life. By launching, the Habbit Super Shake is a daily nutrition
drink for the entire family. A glass of Habbit Super Shake covers all your essential nutrition
requirements. It consists of all essential fibres, healthy omega, vitamins and minerals with
zero added sugar to give a super start to your day.
Market segmentation is an increasingly important part of a strong marketing strategy and can
make all the difference for companies in competitive market landscapes, such as e-commerce.
A segmentation strategy of the market helps in organizing or managing the consumers as well
as customers of a business or the base structure of the business along with geographical,
demographic, psychographic, or behavioral lines, or better, a combination as well as a
mixture of all of these. Applying the right as well as the perfect segmentation strategy of
markets for any types of business refers to the process of using as well as combining or
mixing the geographic, demographic, psychographic as well as behavioral segments in order
to reach or achieve a more targeted as well as focused base of the entire business as well as
the customers or consumers.
Demographic segmentation the most straightforward way of defining customer groups, but it
remains powerful. Demographic segmentation looks at identifiable non-character traits such
as Age, Gender, Ethnicity, Income, Level of education, Religion, Role in a company. For
example. demographic segmentation might target potential customers based on their income,
so your marketing budget isn‟t wasted directing your messaging at people who likely can‟t
afford your product.
Psychographic segmentation is focused on your customers‟ personalities and interests. For
example, were aware that a big sector of the company‟s target audience was always keen to
get the very best price they could.
Geographic segmentation one of the easiest to identify, grouping customers with regards to
their physical location. For example, it‟s possible to group customers within a set radius of a
certain location – an excellent option for marketers of live events looking to reach local
audiences. Being aware of your customers‟ location allows for all sorts of considerations
when advertising to consumers.
Behavioral segmentation is possibly the most useful of all for e-commerce businesses. For
example, we can distinguish between a first-time visitor and someone who‟s already been on
your site multiple times but haven‟t purchased.
Habbit can be global game-changer in health and nutrition. All you need to do is try their
products once, and you'll fall in love, Habbit's product philosophy centres on three key tenets
of science, taste and sustainability. The formulation of Habbit's products are steeped in
science and have been filtered repeatedly against taste tests with over 10,000 lifestyle, fitness,
health, and wellness experts to deliver on products that are high on performance and pleasing
to the palate. All of Habbit's products are made with the highest quality, clean and organic
ingredients that are good for both the user and the planet. Unfortunately, existing players,
without any product innovation, have made it very complicated and intimidating, by trying to
push strange foods, gimmicky pills or chemical-laden powders. Habbit, with its proprietary
products, delicious foods, and digital ecosystem, will make nutrition simple, enjoyable and
rewarding for everyone." By evaluating certain question will able enhance the product
specialty
● Who will be the consumers?
● What will be the location of the consumers?
● What are the products in which the consumers are taking an interest?
● How the marketing, as well as promotional processes, are to be done?
● Why are the various segments interested as well as not interested in the services as
well as products of the business?
The above questions will help the company a lot in making or creating a strong base of
consumers or customers in order to capture the market with full efficiency as well as
effectiveness.

Conclusion

The segmentation market strategy required to launch a new product in a business or company
in order to keep the plan in right direction by setting overall structure of product. By applying
market strategy and implementing business rules will help to reduce the chances of loss by
predicting all the important factors as well as points at the very beginning or at the early
stage.

3. Read the following Case & solve the questions given:

Mr. Ramesh of Unique Industries is contemplating to enter the men’s top end shirts
category. The company already has a brand “CLINGERS” in the middle segment
(₹350-700). The brand is very popular amongst the target audience. Having got the
volumes, Mr. Ramesh now wants to play the value game and enter the top end (₹700+)
category. He knows there are some formidable brands like Farow etc. that will make life
extremely difficult for Unique Industries. But there are certain advantages which
Unique Industries enjoys. It has one of the best retail networks in the country. They
have their own factory, which ensures regular quality supply. They are the pioneers of
branded shirts in India.

Mr. Ramesh has decided to keep the brand name as “Clingers Gold”. He has decided to
allocate ₹10 crores for sales promotion and advertising budget.

Unique Industries is simultaneously entering the readymade trousers market and shoes
market. Mr. Ramesh has decided to keep the same brand name “CLINGERS” to
leverage the success of the brand name to the two new categories.
a. Do you think the brand name “Clingers Gold” is right for the top end segment?
Justify your answer. (5 Marks)
b. Which factors you think needs to be studied before making such entry in the market?
(5 Marks)

Answer 3a.

Introduction

“Clingers Gold” is the best to use because many people already know about its existence
hence it will be easier for it to grow since new members will add to the current customers. It
is one of the most favorite brands of shirts in the overall country.

Concepts and Applications

The Unique industries is well known company having great value in market as the current
brands with different category of shirt and tops, are liked by consumers or customer also
company having positive feedback from their respective costumers. By launching prime
version of same brand is excellent idea, as Clinger are famous and well-liked by consumers
so the gold version will be well appreciated by customers. One thing which needs to be focus
is to maintain the quality of product better than the ordinary Clingers brand, in order to make
client satisfied which will help in increasing number of consumers and will increase the profit
of company. However, if company tries to reduce the quality of product in order to increase
profit margin will leads to unfair with the customer resulting in loss of newly version of the
Clingers gold product will surely loss of company brand name. By advertising on social
media about the newly launch product of their favorite brand of shirt and tops with its gold
version will create an excitement and wave of happiness towards their consumers, as they
surely have high expectation with the new version of product. Thus the company must have
to look at its best in order to serve their consumers with keeping promise to customers to
provide better quality as well as better services.

Conclusion

By using the name Clinger with addition of the word gold will increase probability of brand
going to be highly successful in market with having product its updated vision will create an
exciting environment with probability of increasing profit of the company.

Answer 3. b.

Introduction

There are many factors to be taken care by the company or business organizations before
launching or introducing any new product to the market to reduce the probability of facing
critical challenges. These are:

Knowledge or Expertise

Research must be done before launching a new product with better quality by using
innovative ideas and method to beat the competitors.

Market or Demand

By using marketing skills to create demand in market for a product will definitely going to
increase the growth potential and profit margin of the company.

Start-up Costs

The company must assess the total cost of product, which needs to be check before launching
the product in market to keep the price affordable to consumers.
Capital and Finance

This generally includes the capital that you can introduce from your savings as well as the
funds that you can borrow.

Competition

He needs to know his competitors and what they are doing to be able to survive in the market
for long.

Price

The most important factor is the price. And to make a product successful, the price always
may be below the price of the competitor products.

Promotion
It important factor that helps in reaching the products to more customers, the promotional
process is very much easy with the help of the social media.

Timing

Timing is the most important factor for the perfect launch of a new product and the time of
Christmas, the New Year and other festivals are the best time to launch products.

Conclusion

The factors which need to be taking care of as mentioned above before launching a new
product in market. The evaluation has to be done before launching any new product in order
to get the better performance as well as the best output. By analyzing these factors will help
to understand the customer‟s experience which results in increase in loyalty of the customers.