BMN 511 Marketing Management 2

Autumn Semester, Term 2 (2021)

DoMS, IIT Roorkee

Assignment 1
Student Name Aditya Gupta
Student Enrollment Number 21810005

Q. Following are the sales statistics of a leading brand of soft drink and the industry. What
conclusions do you derive? If you were the brand manager, what strategy would you use for next
3 years?

Year Brand Sales Industry Sales

(‘000 cases) (‘000 cases)
1 4500 6000
2 5750 7555
3 6852 8200
4 7000 8600
5 7250 8950
6 7500 9250
7 7300 12000
8 7000 12900
9 7150 15100
10 6750 15000

Industry
CAGR
9.595822639

Year 1 2 3 4 5 6 7 8 9 10
Market Share 75% 76% 84% 81% 81% 81% 61% 54% 47% 45%

Company and Industry

Sales
20000
15000
10000
5000
0
1 2 3 4 5 6 7 8 9 10

Brand Sales Industry Sales

Inference

 The company is losing its market share constantly since year 5 as seen clearly from the graph
which implies that the market is getting competed heavily.
 The sale is constant since year 3 which implies that either the company has the same
consumers which are being catered with the same product and others are capturing the new
sales using their product or the market has new products which the company is not able to
deliver.
 The industry is growing at a CAGR of 9.6% constantly which implies that future investments
can give promising results.

Market Share
90%

80%

70%

60%

50%

40%

30%
1 2 3 4 5 6 7 8 9 10

Competitor Analysis

With the falling market share it is clear that competitors for the company are growing. Which can
be mainly because of two reasons one many companies have entered and they all are capturing
small shares or else the competition has a new offering in the industry which our company is not
able to supply.
So first the company needs to research the industries point of view for the company and the industry
as whole which can be achieved through various methods.
Second the company need to check on the competitor’s objective in terms of profitability cash flow
etc.
Third the company researches about competitors’ strengths and weaknesses using secondary data
and conducting primary marketing research
Forth the company can target overlapping customers.
Competitive Strategy
Differentiation
The company can invest on setting a highly differentiated product line and marketing program
The company is already a market leader and had enjoyed a huge market share before so they have
a good base to stand on.
With creative advertising, distinctive product features, higher quality, better performance,
exceptional service or new technology to achieve a product being perceived as unique.

This will create a persona around the brand and will push the customers to buy the product over
others if the price is not too high.