Marketing Management

Answer :1

Introduction:
 Balaji , Gujarat(Rajkot) based company manufactures and distributes potato chips and
other grain-based snacks in varieties of flavours. It started as micro business and
company has evolved into Rs.4000 crore company producing variety of quality
products with an original taste. Being the product Manager of Balaji, I have been
asked to develop product plan for new flavour of potato wafer.
 The new product planning involves contribution of various top management personal
and specialist from various division ie from sales and marketing, research and
development, manufacturing and finance.
 Philip Kotler has suggested following major steps for New Product development
process :
1. Idea Generation
2. Screening the Ideas(Evaluation)
3. Concept development & Testing
4. Marketing Strategy Development
5. Business Analysis(Market Analysis)
6. Product development
7. Test Marketing
8. Commercialization(Market Introduction)

Concepts and Application :

Products can be obtained by the company either through acquisition or by developing new
products. New product is a strategic decision , it should support the overall company’s and
growth targets . The process can be easily broken into following stages:

Idea Generation:
Ideas form the backbone of the new product development process. This stage involves
systematic search for new ideas using various techniques:

Product ideas from Internal sources(within company):

 Research and development: Experts conduct Market research and analysis and
generates new ideas.
 Employees: Certain employees are closely associated with the customers can
generate ideas. As per data, 45% of ideas for new product comes from the employees.
Product ideas from External sources(outside the company):
  Customers : Their needs, wants and desires form the base of market opportunity.
Surveys, customer forums are good sources of idea generation.
 Channels of Distribution: Distributors working closely with customers can
understand their requirements and demands. They can help with information from
market ie new concepts, techniques, technology and materials, which can help for
possibilities of new product.
 Competitors: Analysis of competitors products can generate idea about the missing
product in the market and it also provides the market rates of some of the similar
existing products.
 Crowdsourcing/Open innovation new product idea programs: Many other sources
like consultants, communities, government agencies, market research firms,
independent scientists and researchers, commercial laboratories ,can also help to
generate ideas.
Idea Screening
Evaluation of valid and feasible ideas can be done in this stage. This stage helps to filter the
good ones ad drop poor ones as soon as possible.
 Compatibility: Ideas should match business objectives.
 Relevance: Relevance of ideas based on the current and predicted company’s goals.
 Assumptions: To check whether the list of assumptions are valid.
 Constraints: Internal as well as External constraints that can stop the growth of ideas
into becoming a reality.
 Feasibility: Available resources meets the feasibility of idea.
 Value: What is predicted return of investment.
 Risks: Risks which can stop the growth of ideas.
Concept Development and Testing:
Concept is as smart version of product idea that takes into consideration a) potential target
audience b)Product usage c)Potential value prepositions.
Possible product concept for new flavours of potato wafers can be:
 Concept 1: Potato wafers with home cooked ingredients to enhance the flavour and
taste to attract youth population.
 Concept 2: Potato wafers with chocolaty taste for appealing the younger generation.
 Concept 3:Potato wafers with more quantity and lesser price for economically viable
population.
Concept Testing: Testing new product concepts within a group of target consumers helps to
find out if the concept has strong consumer appeal.
 Concept-test surveys: Planned target audience are questioned related to product and
then the answers are further analysed to test the sustainability of the concept.
 Prototype : Prototype is developed to test the feasibility of the concept.
Marketing Strategy Development:
Once the promising concept is finalized, Marketing Strategy is divided into 3 parts:
  The target market, sales, planned value proposition, market share and profit goals for
the first few years.
 Marketing strategy outlining the product’s planned, distribution, price, marketing
budget for the first year.
 The planned long-term sales and profit goals and marketing mix strategy.
Business Analysis
This step is done once the product and market strategy is finalized. This step involves
reviewing the costs, profit and revenue projections for a new product. This should be
inline with company’s overall growth and objectives.
This step helps in analysing the following by conducting market surveys, consulting
experts or by analysing the history of the similar products
 Costs for production, Sales and Marketing.
 Projected revenue
 Projected profits
The analysis is compared with company’s objectives. The product goes to production stage
only if it meets the objectives.

Product Development
This phase involves developing the product concept into a physical product to ensure that the
project idea can be translated into a workable market offering. It takes days, weeks, or
months to develop the final product as it goes through series of testing phases
 Alpha testing: to make sure it fits the standards.
 Beta Testing: the test version is launched in the market to validate the product-market
fit.
Test Marketing
In this stage, the new developed product is tested in realistic market setting. This step
involves
 Positing Strategy
 Pricing Strategy
 Communication Strategy
 Promotion Strategy
 Distribution
There are 3 types of test markets:
 Standard test markets:
 Control test markets
 Simulated test markets:
Commercialisation
Introducing new product into the market . This stage involves highest costs as
  Manufacturing units are leased or purchased
 Advertising and communication campaigns are executed
 Sales promotion, other marketing efforts are executed to meet the initial demand
 Introduction timing and place
 Future strategies
Conclusion:
The focus for new development should be creating superior customer value, as only when
you develop a superior customer value, you can develop a new product worth selling. As per
statical data , very less % (10%) of new products are unique and innovated.

Answer :2
Introduction:
 Healthiest Ice Creams – This term itself is difficult to be accepted in the market.
However, Habbit Wise creams have come up with this unique concept of launching
low calories ice creams by using natural proteins and plant fibres to replace fat
content from 17% to 2% and still maintain the creaminess in the ice-creams. Mr.
Bhushan , founder and CEO of Habbit considers that health aware, affluent consumers
are limited in few major cities in India and want to expand the market segment . He
wants to build a premium, aspirational, and trend-setting brand. He wants to target
global premium international market segment by focussing more on being clean,
natural, organic products.
 Market segmentation can be very efficient for marketers to target a particular group
of potential customers. These customers can be divided into smaller or larger groups
basically on the characteristics they share ie, demographics, needs, interest or even
location. Segmenting a market also helps to be effective and prepare a focussed
marketing plan.
Concepts and Application :
Bases of segmentation in consumer markets:
o Geographic: This segment focusses on regions, size of the area, population
density and climate. Certain companies would like to localize their product,
services . However as per Vision of Habit , they want to launch low-calorie ice-
cream in the world. They can target countries with dense population and hot
climate.
o Demographic: Market is divided into segments based on versatile factors such as
age, life- cycle, stage, gender, income, occupation, education, ethnicity,
generation, and religion. This is most popular bases for segmenting customers.
For launching of low-calorie ice-creams, this will be the most appropriate segment
to target .Customer who are aware about healthy lifestyle , going to gym , middle-
aged , higher income, well educated who understands the calories can be targeted.
Marketers should not be using stereotypes while using and lifecycle segmentation.
 o Psychographic : This segment deals with more mental emotional characteristics ie
activities, interest, Opinion, values of the customers.
o Behavioural :This requires knowing about purchasing habits, spending habits,
interactions with different brands, user status of the customers.
Benefits of Market Segmentation:
 Market segment helps to create marketing mix for each segment, so that
customers can be catered appropriately.
 It helps to identify opportunities for new product development.
 Market Segmentation helps to design most effective marketing programs, reaching
homogenous groups of buyers.
 Marketing resources can be allocated efficiently.
 Increased ROI
 Customer Retention
 Increased Market Share
Disadvantages of Market Segmentation:
 Extensive research and development
 Expensive process
Segmenting market makes it convenient for marketers to boost their conversions and cut
costs. Marketing plans can be better and provide better results. Dividing market into smaller
segments helps to target the niche customer base.

Once we decide our market segment, the product should be rightly positioned in the market.
Process of differentiation and product positioning mainly involves:
 Set of differentiating advantages of competitive products are identified and then the
position is built upon that.
 The correct and appropriate competitive advantages are chosen.
 An overall positioning strategy is built.
After this the company must have effective marketing plan to communicate and deliver the
decided position to the market.
Eg:
 Porsche is positioned as a performance car while BMW is positioned as a luxury car.
 Walmart is positioned as wide selection of products , one can purchase at lowest
price and differentiators are wide range, low price.
One can build strong brand by positioning it correctly. Brand positioning is referred as
reason of buying the brand by target consumers in preference to other brands.
Certain times the companies also fumble in positioning the brand, the positioning errors can
be classified as under positioning, over positioning, confused positioning, and double
positioning.
The brand strategy decisions involve positioning of the brand, selection of the name of brand,
brand sponsorship and finally brand development.
Some of the example of strong positioning statements known as taglines/slogans:
Nike: ‘Just do it.’
Walmart: ‘Always low price, Always’.
Conclusion:

Habit can plan to focus on only 10% of premium customer segment. As the products are
mainly health-focused products. They can also plan to launch worldwide in Singapore, Dubai
to the premium customers. They can also build direct to home pipeline in various major cities
in India. Packaging design is also an important aspect for the brand positioning in the market.
Habit is providing lowcal ice cream, which is healthy due to ingredients which are natural,
organic, fat-free, vegan, these unique features about the brand should be mentioned
creatively through images and content . The target consumer for ice-cream is majorly kids
and youth. Ice-creams should have a playful and joyful personality. Ice-cream as a desert
normally spreads happiness and smiles.

In the brand strategy, as per the trend , consider the following aspects:

 Increase in disposable income in young Indians.

 As per the ongoing pandemic situation, deliveries and processes should be introduced
with minimum human touch , this can mitigate the risk of virus transmission.

Answer : 3A

Introduction :
The brand strategy legitimate the brands to connect with their customer in the most
sustainable, loyal, and profitable manner possible. Using strategy of multi brand, company
can restrict or even end the competition . Multi Brand strategy helps company to market
similar brands for the same company using different brand names. This helps to increase the
market share.
Concepts and Application :

There are different types of approach used by the companies to market their brands to the
customers.

Here the company wants to targe the market segment of top end category by using the
different brand name ‘Clingers Gold’. This will help the company to become a gold standard
in the top end category as compared to the competitors. This will increase the value and
vastness of the company in the market. This new brand ‘Clingers Gold’ will help to increase
the shelf space of the company and that would result in a better sale, better visibility of the
brand and hence better profit for the company. Having a large product line and multi-brand
gives a very high stake that even after switching the brands, the customer is still coupled with
the company. This would also give options for customers to change their test according to the
time. They already trust the quality of the company.

There is also certain disadvantage of using multi-brand strategy:

 Multibrand strategy also generalizes between similar brands , if the company is not
able differentiate the brands correctly then it may cause confusion with the customers.
 Overlapping of brands may distract the customers and this may lead to customer
shifting from outside the brand umbrella.
 Multi-branding strategy sometimes affect the company’s image. Instead of being
customer oriented it is perceived as profit oriented. The sales may drop due to the
confusion.

Conclusion:

“Clingers Gold” is the right choice made by the company for the top end segment. Since
unique industries is already having best retail networks in the country and it ensures quality
supply. This will be a great opportunity to launch the new product to ready market of loyal
customers. Since they are pioneers of branded shirts in India, customers also are interested in
the company’s next product. This name would help to relate the existing brand.

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

Answer : 3B

Introduction :

Launching a new product is stressful activity, Proper strategic planning along with
strong team can help to manage the intensity of stress. Success or failure would depend on
the product’s relation to segmentation and pricing. The financial security of the company and
the way in which it is marketed also contributes in the success or failure of the product.
Customer’s actual need and quality of the product is also an important element. Launching
the product right is very important.

Concepts and Application :

Following factors should be meticulously studied before entering the market:
  Knowing the customer:
Defining the target audience is of utmost importance. Knowing the
Customer profile, demographic information such as occupation, age, websites
they visit, usage of social media , who is buying the competitive products, etc
is essential while launching the new product. This information would help in
understanding where to find the customer and how the connection can be
established. Demographic data would help for the market survey and research.

 Solving the right problem:

When customers are having some problem and they are looking out for
solution, then marketing of the product which solves the problem is the
easiest.

 Discreet positioning against the competition:

Competition exists for every product, hence, to successfully launch the
product, it is important to know your business is working against what?
When another company is providing the similar product or services, in the
case our position point might focus on additional value, price, service
capabilities. When the customer is known and when the problem we are trying
to address is known, it becomes easier to position the product more accurately.
 Assessment.:
One of the key point is taking feedback from the customer. Customer
feedback can help to understand the trend and patterns. Based on the feedback
the product launch can be targeted accordingly with some additional perks.
 Define the unique selling point.
Successful products have unique selling proposition. This uniqueness
makes the product special and a special reason for customer to buy. This USP
forms an essential part of marketing strategy.
 Whole team should be agreement, their buy-in is important.
Agreement with the team is very important. Depending on the product,
allow team to use it, this will boost the confidence of the team. Give
motivational training to the team. Sometimes providing the shares to the team
also boost their morals and encourages them to promote the product. Many
companies keep profit-sharing business model with the team.
 Timing of Launch :
Depending on the type of product , timing of the launch can be
decided. This also is an important factor for a successful product.
 Variegate the marketing strategy.
The marketing strategy should be diversified. It should be devised in a
such way that product can reach maximum places as per the targeted audience.
Depending on the budget, digital marketing would also play an important role
in strategy. Sometimes it would be wise to work with the influencer of the
market. Correct planning is the key.

Conclusion:
 Product launch is important for business owner/entrepreneur and might create stress,
however that is not end point of the business .Sometimes depending on the product based on
marketing strategy it might even be decided to distribute the samples along with flyers on the
street. After the launch customer satisfaction survey can be done to get the real time
feedback.