Done Case

TATA NANO
1.Reading the case
Tata Nano PRODUCT FAILURE HERE IS WHAT WENT WRONG:
Tata Motors launched the Nano with motorcyclists in mind. To appeal to them, Tata
manufactured the Nano as inexpensively as possible; the Nano was priced at 100,000 rupees,
or approximately $2,500 in 2008 dollars.
The company hoped the Nano’s compact design and low price would make it a popular
choice with residents of urban areas, many of whom relied on motorcycles and mopeds for
personal transportation. The low-price tag led to numerous cut corners in production, which
resulted in serious safety flaws. However, the car faced a lot of technical issues in its initial
production run which further contributed to its failure and the production of Nano halted as
the year saw the production of only one unit in 2019. The car faced a lot of technical issues
the car had poor riding comfort and had stability issues moreover the price did not remain
as one lakh and in fact doubled due to which it started losing customers.
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TATA NANO
2. The Report Format
I. Executive Summary
Tata Motors Group (Tata Motors) is a $34 billion organization. It is a leading global
automobile manufacturing company. Tata Motors Limited is an Indian multinational
automotive manufacturing company, headquartered in the city of Mumbai, India which is
part of Tata Group.
The company produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars,
construction equipment. Its founder is J. R. D. Tata and it was founded in Mumbai. Its
revenue is 3.19 lakh crores INR (US$45 billion, 2021). Its subsidiaries are Jaguar Cars,
Jaguar Land Rover, Tata Technologies. Its diverse portfolio includes an extensive range of
cars, sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's
largest OEMs offering an extensive rang Part of the USD110 billion Tata group founded by
Jamshedji Tata in 1868,
Tata Motors launched the Nano with motorcyclists in mind. To appeal to them, Tata
manufactured the Nano as inexpensively as possible; the Nano was priced at 100,000 rupees,
or approximately $2,500 in 2008 dollars. The company hoped the Nano’s compact design
and low price would make it a popular choice with residents of urban areas, many of whom
relied on motorcycles and mopeds for personal transportation.
About a decade ago, the market was abuzz with talks of a revolutionary new product by Tata
Motors. The Tata Nano was set to change the entire game by making a four-wheeler
accessible to anyone. Cheap, fast and reliable, Tata Nano was the answer to all our problems.
In 2008, Indian car manufacturer Tata Motors launched the Tata Nano, an ultra-compact
hatchback designed specifically for the domestic Indian market.
TATA NANO
India’s population still consists of a large part of the society dwelling as low pay individuals.
Buying a vehicle is still a dream for many in India. In 2008, Ratan Tata announced the
delivery of its vehicle nouvelle, which would stir a whole new section in the automobile
industry. He called the “1 lakh rupee vehicle” and used the same title for advertising.
Ratan Tata remained faithful to setting the Nano on the roads, and he did so by July 2009.
Initially, the demands were towering for the car, but they began to fall month after month.
Marketing the vehicle was the primary reason that lagged Tata to attract consumers. But
what could have possibly gone wrong with the marketing?
However, the low-price tag led to numerous cut corners in production, which resulted in
serious safety flaws.
Reports of Nanos bursting into flames after rear collisions were common in the months after
the vehicle’s debut. Tata ultimately sold fewer than 8,000 Nanos before pulling the vehicle
from the market entirely.
Tata Motors did not produce a single unit of its entry-level car Nano in 2019 although it sold
just one unit in February even as the company is yet to officially retire Ratan Tata's "people's
car".
The reasons why an ambitious project of Ratan tata failed was because it failed to attract
Indian consumers significantly due to the early cases of the Nano bursting into flames.
Tata failed to attract Indian consumers significantly due to the early cases of the Nano
bursting into flames. Because of this, the impression of the automobile being hazardous due
to the compromise in quality for slicing the cost was one of the major reasons why Tata
Nano failed.
The car faced a lot of technical issues the car had poor riding comfort and had stability issues
moreover the price did not remain as one lakh and in fact doubled due to which it started
losing customers. The relocation of the plant also had run into controversies. Also, there was
an engine issue. Like mentioned earlier, the vehicle burst into flames, and this was related
to the engine issue.
Nano promoted itself as the cheapest vehicle. No one likes to ride in a “cheap” car. Tata
launched this vehicle intending to target the low pay individuals and their families, but
however passionate the intention is, the automobile is seen with an eye of segregation in the
public platform. Moreover, words like “cheap” and “lakhtakia” used in promotions and
advertisements shook its image.
TATA NANO
Tata Nano was focusing on individuals who never thought of buying a car – for those people
who had low income. However, this propelled a certain level of opposition. As per the
intended interest group, the media, followed by the general mass, pictured Tata Nano as a
poor man’s vehicle. Eventually this car is very impressive for the following reasons for use
on narrow zigzag roads on Himalaya which have sharp turnings. First the 30% gradeability
is amazing in climbing even the steep slopes. Reduced body weight is blessing because there
is always risk of side road sliding by higher body weight.
II. Report main body
A. Situational Analysis
Ten years after it was launched, Tata Motors’s Nano is dead, waiting to be formally buried.
In June 2018, only one Nano was produced and the company admitted two weeks ago that
the car cannot continue in its present form after 2019. When it was launched in 2008 it won
a plethora of international awards based on its defining features – high fuel efficiency, low
weight, designed to incorporate all international safety regulations then applicable and
having the lowest emission level among all cars then being made in India – offered at the
cheapest price in the world. However, the car faced a lot of technical issues in its initial
production run which further contributed to its failure. During the first two years, several
Tata Nano cars were reported to catch on fire due to faulty wiring. The Nano had poor ride
comfort and stability issues due to the lightweight body. Tata Motors is expected to dispatch
TATA NANO
250,000 Nanos every year. However, this did not happen. Instead, only 7591 were sold for
the year 2016-17. In 2017, Tata Motors said that assembling would proceed because of
Tata’s compassion for the project.
B. Statement of the problem/ Formulation of the problem
• Sales fell far short of forecasts.
• The relocation of the factory was a debacle.
• Occasionally, the car even burst into very real flames.
• Common Problems Reported on the Tata Nano! Happened simultaneously like the
horn Stopped Working, Starter Motor Problem which is one of the major components
of a vehicle, the A/C not Effective, Power Windows failed, the Speedo Meter was
not working, the dashboard Rattling, and there was a lack of power.
C. List of critical factors
• Nano was never the “one lakh” car and over time the car was quoted at Rs 2.59 lakh,
compared to the cheapest Alto 800 going at Rs 2.88 lakh.
• It will be best for city usage and trips such as a 200KM or so it is meant to say it
won’t be comfortable for overnight long trips of over 300km etc.
The Tata Nano received a zero-star adult protection rating and failed to meet even the most
basic UN safety requirements.
Tata Nano GenX is primarily a city car and it is not meant for highway driving.
The small wheels are not able to cope with bad roads and big bumps do unsettle the car
substantially. The car has good handling but grip levels are low and steering lacks feel and
feedback at high speed.
D. Assumptions.
The trait of demographic trends must be considered to understand the acceptance of the
product.
It comprises of lifestyle, consumer trends, income, spending power etc. it allows a company
to make plans and strategize on the kind of products to be marketed.
Study the Business environment in order to make plans, design strategies and take decisions.
It is very significant for any company to analyze the location dynamics.
Being a huge manufacturer of automobiles, its periphery consists of all the accordant forces
and had all resources it could have set right the problematic technicalities.
TATA NANO
To analyze all your metrics about the product launch itself.

Should not have Changed product pricing which was the main marketing strategy.
If it’s a large product with several components or services, break it apart into separate
products. It’s possible your ideal customer doesn’t need everything you offer, but would
happily buy the components.
Bundled pricing in which other valuable, related products or services, are added usually
offering a discount for the bundle. Sometimes the addition of services such as free tech
support, maintenance contracts, or extended warranties can boost lagging product sales,
especially with complex, technical products
Understand the target audience and generate a sense of longing towards that product.
Before launching a new product, it is very important to understand the target audience of
that product. One needs to understand their psychology, their wants and desires. The
marketing strategy is based on making the product seem attractive to that audience. The
product becomes successful if the company can generate a sense of longing towards that
product so that people buy it as soon as it is launched.
TATA NANO
E. SWOT ANALYSIS
Strength:
1.Brand name very strong
2.Tata Nano is available at a very affordable price
3. Easy to drive in traffic conditions
4. Innovative engineering of Tata Nano provides better facilities compared to same
segment cars
5. Low maintenance and handling cost of Tata Nano
6. Good fuel efficiency goes well with Indian audiences
7. When it was introduced it created a huge buzz in the global automobile industry being
a ‘common mans’ car
8. Excellent advertising of the Tata Nano car across TVCs, print media, online ads perhaps
the biggest plus is its fuel efficiency and correspondingly low levels of emission.
Weakness:
1. Perceived as a cheap product which repels the aspirational customers
2. Setting up of production plant in West Bengal with respect to Singur where the location
was determined first went into debacle as the farmers did not give their land caused a lot
of tension
3. Limiter international presence of Tata Nano
Opportunities:
1. Tata Nano can capitalize on the fact that it is the most affordable car and acquire new
customers
2. Increasing per capita income and purchasing capability of potential customer base
3. Promoting CNG model at the earliest and attract the public passenger car segment
4. Increase international market presence especially Europe too boost Tata Nano's
business
5. Augmenting the distribution and service network in various countries
THREATS:
1. Increasing fuel costs
2. Competition from other big automobile giants can affect Tata Nano's business
3. Competitive products offering same level features at a lesser price
4. Product innovations and frugal engineering by competitors
TATA NANO
F. SOLUTIONS FOR THE QUESTIONS IN THE CASE STUDY
TATA Motors could have continued to target their common man’s target customers.
They should have kept a low price so that it could have been affordable.
They could have marketed in the rural and remote regions.
They should have sorted out the technical issues.
The company should have proved their product's viability. ...
Implementing actionable post-launch refinement.
The company should have worked on removal of technical defects
TATA NANO
G. Conclusions
They are India's largest automobile manufacturer, and They continue to take the lead in
shaping the Indian commercial vehicle landscape, with the introduction of leading-edge
powertrains and electric solutions packaged for power performances and user comfort at the
lowest life-cycle costs. Their new passenger cars and utility vehicles are based on Impact
Design and offer a superior blend of performance, drive ability and connectivity.
Their focus is on connecting aspirations and their pipeline of tech-enabled products keeps
them at the forefront of the market. They have identified six key mobility drivers that will
lead them into the future – modular architecture, complexity reduction in manufacturing,
connected & autonomous vehicles, clean drivelines, shared mobility, and low total cost of
ownership of integrated, smart and e-mobility solutions.
TATA NANO
H. References
https://gomechanic.in/blog/tata-nano-what-went-wrong/
https://www.finnovationz.com/blog/tata-nano-failure-story
https://startuptalky.com/tata-nano-case-study/
https://www.tatamotors.com/
https://en.wikipedia.org/wiki/Tata_Motors
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KELLOGG’S
INTRODUCTION TO THE CASE:
India became extraordinarily tough market for Kellogg’s. Reason being it had
to change ingrained eating habits of consumers. It passed through different
though d
phases of life-cycle before it has become the strongest player in breakfast
cereal category in India. Presently, Kellogg’s is estimated to hold about 60-65
per cent of India’s breakfast cereal market. The total worth of breakfast cereal
market in India is Rs 400 crore. While introducing a new product category, it
was not easy for Kellogg’s to establish a foreign brand into Indian market
where food habits of people change after a few kilometres. The journey of
Kellogg’s from failure to success is discussed in this case.
Kellogg’s is one of the most successful brands from U.S. which was world’s
leading producer of cereal and convenience foods. The products are
manufactured in 18 countries and sold over in 180 countries. It is hugely
popular breakfast cereal brand. It is sold in 160 countries with sales turnover
of over $9 billion. On its initial entry into the Indian market, it used similar
marketing mix which it was using in other global markets.
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KELLOGG’S
When Kellogg’s first entered India in 1994, it heavily bet on transforming the
Indian breakfast cereal market. It wanted to switch breakfast habits of Indian
consumers who were used to hot breakfast foods.
The company wanted the Indian consumer to change its traditional habits of
having either Idly Dosas or Parathas in their breakfast and these habits too
varied from region to region with the northern region preferring Parathas and
southern region preferring Iblis, Vada’s etc. and the western region preferred
alternatives like Poha. They wanted customers to make an instant switch from
their own traditional habits. They wanted people to start having the healthier
breakfast cereals which was a huge Challenge for the company.
Executive Summary:
Kellogg’s is one of the most successful brands from U.S. which was world’s
leading producer of cereal and convenience foods. The products are
manufactured in 18 countries and sold over in 180 countries. Kellogg’s is
estimated to hold about 60-65 per cent of India’s breakfast cereal market. The
total worth of breakfast cereal market in India is Rs 400 crore.
While introducing a new product category. The products are manufactured in
18 countries and sold over in 180 countries.
REPORT MAIN BODY:
A. Situation analysis:
In its initial advertisements, Kellogg’s showed that what Indian public was
having in their breakfast was not at all healthy. This in turn hurted the sentiment
of the typical India ladies who had been serving traditional breakfast for ages
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KELLOGG’S
to their families. The advertisement negatively affected the mind set of major
influencers and initiator
groups in the Indian families. Also the kind of breakfast which Indians were
having was available in many varieties at lower price than what Kellogg’s
offered. It was difficult for the company to convince people to leave their
traditional breakfast options and replace it with cereals.
Also, the company could not understand another cultural aspect that Indian
consumers have had warm milk in their breakfast. On the other hand corn flakes
(cereals) were preferably used with cold milk. Even when they consumed it,
crispiness of flakes was lost completely as soon as they were dipped into the
warm milk, thereby failing to keep their promise of providing crispy flakes
when it is to be consumed. Due to all the problems that Kellogg’s was suffering
from, its sales declined.
B. Statement of the problem:
Kellogg India receives technology inputs about how to customise products to

suit the Indian nutritional profile, developing packing material specifically for
India, manufacturing process etc. from its parent. Within the larger
management and strategic framework, Kellogg India has the flexibility to adapt
its operational strategy suited to the local environment. Price sensitive
customers necessitated a constant focus on cost reduction and supply chain
efficiency enhancement in India.
• Localised the entire raw and packing material requirement, saving

import duty. Also it has adopted single sourcing strategy achieving scale
efficiencies
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KELLOGG’S
• Located its manufacturing plant at Taloja, near Mumbai in the state of

Maharashtra, which is the largest market for breakfast cereals in the
country thereby optimising transportation cost
• Set up a distribution network with storage hubs in all the key states of
the country serving over 200 distributors providing a good reach
C. List of Critical Factors/Facts:
The customers and their vale play a major role and cannot be neglected by the
companies in today’s business world
• Customer focus and retention is a powerful strategic
• To increase the profitability of the company
• To Survive in Highly Competitive market
• Varying concept in decision making units to sell the product
D. Assumptions:
• Sustained brand-building through advertising and investment.

• Introducing Kellogg’s Choco Spider Man 2 “web designed cereal”
• Conducting contact programmes in schools and having active interface
with opinion leaders – CFTRI, the government, independent agencies
etc.
• Adopting brand names that appeal to the Indian consumer such as
‘Shakti’, meaning power
• Using packaging as an effective marketing tool, for brand
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KELLOGG’S
• communication and on-shelf differentiation

• Building up of image through recycling and reusing, improving access
to health and human services in local communities.
Company has been leveraging Indian managerial talent by moving Indian
managers to other countries. The Indian team also manages neighbouring
countries like Sri Lanka, Bangladesh and Nepal. Company views India as a
very important market which has a great future. Taking a longer-term
perspective, Kellogg India is planning to continue its investment in
communication of categories and brands to grow the breakfast cereal market in
the country.
E. SWOC Analysis of Kellogg’s:
Strengths
• Strong positioning the minds of customers
• Employee resource groups to drive business sustainability and

organizational success
• Multinational presence with global manufacturing and marketing

capabilities
• Strong commitments to nutrition
• Effective marketing campaigns
• Weaknesses
Lack of segregation in product portfolio
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KELLOGG’S
• Known majorly as a breakfast cereal.
• Majority of the products in the portfolio is sold in North America only
• R&D centres are limited to certain regions only
Opportunities
• Venture into emerging markets
• Expansion of product portfolio
• Additional business models like E-business
• Rapid market growth in ready-to-eat cereal category
Challenges
• Intense competition
• Changing customer perception about breakfast and processed foods
• Regulations by the government
F. Solution for the question in the case study:
1) In Comparison to Kellogg’s, Explain the Product Profile of the

company
Over time Kellogg India has widened its product portfolio. It expanded its
range to include Frosties, chocolate-flavoured scoops and taste variants of Corn
EWCM/RR/VD/2020-23 16
KELLOGG’S
Flakes. Kellogg India also adapted its products to address the local
need gaps.For example it focused on iron and calcium fortification with
products like Iron Shakti and Calcium Shakti Kellogg India receives
technology inputs about how to customise products to suit the Indian nutritional
profile, developing packing material specifically for India, manufacturing
process etc. from its parent. Within management and strategic framework,
Kellogg India has the flexibility to adapt its operational strategy suited to the
local environment. Company has been leveraging Indian managerial talent by
moving Indian managers to other countries. The Indian team also manages
neighbouring countries like Sri Lanka, Bangladesh and Nepal. Company views
India as a very important market which has a great future. Taking a longer-term
perspective, Kellogg India is planning to continue its investment in
communication of categories and brands to grow the breakfast cereal market in
the country.
2) What are the challenges the company may face in future?
Kellogg Company, India's market leader in organised breakfast cereals

space, aims to double its revenue in the next five years with 20 per cent
growth in its business. Kellogg India will focus on increasing market
penetration both in the urban and rural areas. In short, the business
performed very well in 2020, and we will take that momentum into 2021.”
In North America, operating profit increased 21% in fiscal 2020 to $1.47
billion while sales eased to $8.36 billion from $8.39 billion. Organic sales,
meanwhile, were up 5.1% year-over-year, Kellogg said In FY19-20,
Kellogg posted decade-low sales growth of 4% to Rs 1001 crore while net
profit fell 16% to Rs 22 crore, as per Registrar of Companies filing sourced
from AltInfo, a data insights firm.
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KELLOGG’S
CONCLUSION
All these various initiatives taken by the Kellogg’s as discussed for re-
positioning of its brand helped it in gaining around 60-65 per cent of the market
share of the breakfast cereals market thus helping themselves to become a
market leader. To expand its business further, the company has decided to
promote the brand as an evening snack as well.
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KELLOGG’S
REFERENCE
• https://www.translatemedia.com/translation-blog/how-kelloggs-failed-
and-then-won-in-india/
• http://www.researchersworld.com/
• http://www.ibef.org/download/Kellogg_India.pdf
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OREO
INTRODUCTION TO CASE
For most of its 100-year existence, Oreo was consistently America’s best loved
cookie, but today it is a global brand. Faced with stagnation in the domestic
market, Kraft Foods moved it into emerging markets where it made some
mistakes, learned from them changed its strategy and ultimately triumphed in
winning over customers. This case illustrates a complete re-evaluation of the
product, pricing, packaging, communication and distribution strategy of an
existing Oreo brand in an international market. It can also be used to explore
the global versus local mix that is needed for success in an international market,
and to illustrate the strategies necessary to succeed in emerging markets like
India and China.
BACKGROUND AND COMPANY PROFILE
The “Oreo Biscuit” was first developed and produced by the National Biscuit
Company (today known as Nabisco) in 1912 at its Chelsea, Manhattan factory
in the current-day Chelsea Market complex, located on Ninth Avenue between
15th and 16th Streets. Today, this same location of Ninth Avenue is known as
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OREO
“Oreo Way.” The name Oreo was first trademarked on March 14, 1912. It was
launched that time as an imitation of the Hydrox cookie manufactured by
Sunshine Company, introduced in 1908.
On March 6, 2012, the famous cookie brand, Oreo, celebrated its 100th
birthday. From humble beginnings in a Nabisco bakery in New York City, Oreo
has grown to become the bestselling cookie brand of the 21st century
generating $1.5 billion in global annual revenues. Currently owned by Kraft
Foods Inc., Oreo is one of the company’s dozen billion-dollar brands.
Until the mid-1990s, Oreo largely focused on the US market – as reflected in

one of its popular advertising slogans from the 1980s, “America’s Best Loved
Cookie”. But the dominant position in the US limited growth opportunities and
spurred Kraft to turn to international markets. With China and India
representing possibly the jewels in the crown of international target markets
due to their sheer size, Oreo was launched in China in 1996.
Report Main Body
A. Situation Analysis:
Oreos haven’t always been popular outside the U.S. Kraft struggled for years
in China after being launched in China, for instance, and considered exiting
Chinese market several times. The cookie was spectacularly underperforming
once said Sanjay Khosla, Kraft’s president of developing markets. One
problem: Kraft offered Chinese consumers the same type of Oreos that it sold
in the U.S. Kraft believed that what was good for the U.S. was good for the
world.
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OREO
After surveys showed that Chinese consumers found Oreos too sweet, Kraft
put Andrade to work coming up with a new formula to better suit local tastes.
In India, Kraft encountered the opposite problem: The American-style cookie
was too bitter, Indians told researchers. Adjusting for local preferences isn’t a
matter of just removing one ingredient said Andrade. It’s about making sure
you balance the flavours. You almost have to reconstruct the product.
Kraft also observed that the Chinese consumers were value conscious and
considered the Oreo packets to be expensive. As a result of which the size of
the packets was reduced so as to suit the buying habits of consumers. Moreover,
very small packets were also introduced so as to give the consumers a first taste
of the cookie.
• The introduction of smaller packs required adjustments in manufacturing

plant. Similarly, marketing campaigns also had to be adjusted
accordingly.
• Initially, the distribution was through grocery stores and hypermarkets.
But later the convenience stores were used to enhance the distribution
network. In Shanghai, Carrefour even offered Oreos by weight so as to
give customers more control over the quantity that they buy.
• Recognizing the wafers were very popular amongst the Chinese, the
team introduced chocolate covered wafer sticks. Convincing the senior
management was a tough task, but eventually the product turned out to
be big hit and was subsequently launched in other markets.
• Americans have tradition of pairing milk with cookies. Kraft began a
grassroots marketing campaign so as to educate the Chinese consumers
about this habit.
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OREO
B. Statement of Problem/ Formulation of the problem:
• High cost of Raw materials
• Some of there product in American market has become poisoning
• Internal Competition is more in the company
• Cost of Advertisement is more
C. Assumption:Oreo had been an iconic product in US having been in the

country for over 100 years. Kraft expected the brand to achieve similar success
in China after its launch in 1996. But this was not the case as a result of which,
Kraft had to rethink about adapting the product according to the needs of the
Chinese. The cookie when launches in China did OK but wasn’t a hit. The
company even considered pulling out the brand out of China, but before doing
so that they thought of conducting research about why the Chinese consumers
did not like Oreo. Kraft concluded from the research that Chinese found the
cookie a little bit too sweet and a little bit too bitter and this is where the
turnaround strategy of Kraft was focused. The learning from Chinese markets
were used by Kraft when they entered Indian markets. Initially Oreo was
available in India only in imported form. As a result of this, it was priced at Rs
50 for a pack of 14. Due to prohibitive price coupled with lack of awareness,
the sales were very low. At this point of time, global CEO Irene Rosenfeld
decided to adopt localization strategy similar to the one used in China. This
was helped partly by the acquisition of Cadbury in 2009. As opposed to the
Chinese, Indians love biscuits. India is world’s largest market for biscuits. But
the market is dominated by low-cost glucose biscuits, and premium cream
biscuits only occupy a small share. As a result, in order to capture the Indian
EWCM/RR/VD/2020-23 23
OREO
market, competitive pricing and strong distribution were important

components.
D. SWOC ANALYSIS:
Strengths
• Cost competitive for the market
• Known as the number one biscuit
• Quality product and packaging
• Partnership with many companies
• Customer relationships
• Assortment of products
• Strong history
• Large distribution network
• Double Stuff Racing League
• Endorsed by several celebrities, movies, and television shows
• Fat free and low-calorie options
Weaknesses
• Limited market
• High fat and calorie content in some products
• Uses of palm oil
• Certain products are only in some countries
• Supports the obesity increase in children
Opportunities
• Launch new products
• Sponsor more events
• Create scholarships for students
• Expand the company
Challenges
• Similar biscuits
• Other chocolates
• Off brand copies
• Price inflation in production costs
EWCM/RR/VD/2020-23 24
OREO
• Lifestyle changes due to health concerns
Solutions for the questions in the case study:
1) What are the multi-pronged approach adopted by Oreo in

China?
The cookie when launches in China did OK but wasn’t a hit. The company
even considered pulling out the brand out of China, but before doing so that
they thought of conducting a research about why the Chinese consumers did
not like Oreo. Kraft concluded from the research that Chinese found the cookie
a little bit too sweet and a little bit too bitter and this is where the turnaround
strategy of Kraft was focused.
The multi-pronged approach adopted by Oreo in China can be summarized as

follows:
• Kraft’s Chinese division asked its headquarters to change the ingredients

of Oreo so as to make it biscuits suitable for local tastes. Accordingly,
20 prototypes were developed and were tested on Chinese consumers
and the formula which was most preferred was selected.
• Kraft also observed that the Chinese consumers were value conscious
and considered the Oreo packets to be expensive. As a result of which
the size of the packets was reduced so as to suit the buying habits of
consumers.
• Moreover, very small packets were also introduced so as to give the
consumers a first taste of the cookie. The introduction of smaller packs
required adjustments in manufacturing plant. Similarly, marketing
campaigns also had to be adjusted accordingly.
EWCM/RR/VD/2020-23 25
OREO
• Initially, the distribution was through grocery stores and hypermarkets.

But later the convenience stores were used to enhance the distribution
network. In Shanghai, Carrefour even offered Oreos by weight so as to
give customers more control over the quantity that they buy.
• Recognizing the wafers were very popular amongst the Chinese, the
team introduced chocolate covered wafer sticks. Convincing the senior
management was a tough task, but eventually the product turned out to
be big hit and was subsequently launched in other markets.
• Americans have tradition of pairing milk with cookies. Kraft began a
grassroots marketing campaign so as to educate the Chinese consumers
about this habit.
2) What are the Strategy Used in India?

• The learning from Chinese markets were used by Kraft when they
entered Indian markets. Initially Oreo was available in India only in
imported form. As a result of this, it was priced at Rs 50 for a pack of
14. Due to prohibitive price coupled with lack of awareness, the sales
were very low. At this point of time, global CEO Irene Rosenfeld
decided to adopt localization strategy similar to the one used in China.
This was helped partly by the acquisition of Cadbury in 2009.
• As opposed to the Chinese, Indians love biscuits. India is world’s largest

market for biscuits. But the market is dominated by low-cost glucose
biscuits, and premium cream biscuits only occupy a small share. As a
result, in order to capture the Indian market, competitive pricing and
strong distribution were important components.
• Oreo developed a strategy to take on the existing market leaders which

included Britannia, ITC and Parle. Internally, they referred to this
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OREO
strategy as TLD (Take Leaders Down). Its focus was to target the 10
million households which consumed 70 per cent of the cream biscuits. It
entered the Indian market as Cadbury Oreos as Cadbury had a better
brand recognition among the Indian consumers when compared to Kraft.
It has targeted the small towns and Kirana stores along with modern
stores in big cities. As a result of this strategy its market share has grown
from one per cent after its debut to 30 per cent.
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OREO
CONCLUSION
Today, Oreo has become a global brand. It has presence in more than 100
countries. China is currently its No.2 market. This would have been highly
impossible had there been no clear strategy from Kraft about approaching the
Chinese markets. Manufacturing, marketing, distribution and packaging were
properly aligned as per the market requirements. The decision to reformulate
the Oreos according to the Chinese taste was a significant decision.
This case is a classic example of the dilemma which is faced by multinational

corporations when entering foreign markets. The firms should be able to adjust
to the local tastes. Oreo achieved success by integrating its global brand with
local preferences.
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OREO
REFERENCES
• http://www.businesstoday.in/lbs-case-study/how-kraft-foods-won-over-
customers-in-china-and-india/story/193162.html
• http://articles.economictimes.indiatimes.com/2011-03-
03/news/28650890_1_oreo-biscuit-market-broader-foods
• http://www.canadianbusiness.com/business-news/industries/marketing-
to-china-oreos-chinese-twist/
• http://www.wsj.com/articles/SB120958152962857053
• http://www.forbes.com/2009/12/08/china-oreo-tang-cmo-network-
kraft.html
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McDonalds
McDonald’s
INTRODUCTION:
McDonald's is the world's leading chain of hamburger fast food restaurant and the prominent
global foodservice retailer. Headquartered in the United States, the company was founded
in 1954 by businessman Ray Kroc. McDonald's serves more than 65 million customers daily
with over 35,000 local restaurants in 119 countries (McDonalds, 2017). The corporation
employs more than 2 million employees worldwide. It is worth noting that a McDonald's
restaurant is operated by either an affiliate, franchise, or the company itself. About 15
percent of McDonald's restaurants are owned and operated by the corporation directly
(Schwarzschild, 2016). Most of its revenue comes from the payments, fees and rent paid by
the franchisees, as well as transactions made in the company-operated cafeterias. The
essential products that are sold in McDonald's include cheeseburgers, hamburgers, French
fries, chicken products, desserts, soft drinks and breakfast items. With an aim to minimize
obesity trends and criticism, the company often changes its menu.
In the UK, most of McDonald's restaurants operate on the franchise basis. The organizational
management and strategic focus have enabled McDonald's to compete effectively in an
already competitive industry. The company focuses on providing tremendous customer
service and best operations facilitated by the employees. Along with advertising companies
that leave the brand reputation in the customer's mind, McDonald's continue not only to
penetrate the market but also widen their market segment. This report is mainly aimed to
discuss the service concept of McDonald's and examine how the subsequent operations of
the company contribute to the functioning of the service concept. Besides, the report will
discuss how both the concept and the delivery system might be improved.
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McDonalds
EXECUTIVE SUMMARY:
McDonald's is one of the best-known brands worldwide. This case study shows how
McDonald's continually aims to build its brand by listening to its customers. It also
identifies the various stages in the marketing process. Branding develops a personality for
an organization, product or service. The brand image represents how consumers view the
organization.
Branding only works when an organization behaves and presents itself in a consistent
way. Marketing communication methods, such as advertising and promotion, are used to
create the colors, designs and images, which give the brand its recognizable face. At
McDonald's this is represented by its familiar logo - the Golden Arches.
Marketing involves identifying customer needs and requirements, and meeting these
needs in a better way than competitors. In this way a company creates loyal customers.
The starting point is to find out who potential customers are - not everyone will want what
McDonald's has to offer. The people McDonald's identifies as likely customers are known
as key audiences. McDonald’s has come up with advertising campaigns to help combat
the dropping sales such as its New Taste Menu, and this was geared toward the healthier
consumer. The message was that the company was tasty and nutritious, friendly folks and
fun could be found at McDonald’s.
Case:
McDonald’s has been forced to contend with a number of potential obstacles to growth in
recent years, most notably stark criticism and a less-than-favorable global economic
climate that has seen consumers reduce their discretionary spending. McDonald’s has,
however, employed strategies to counter these problems, and the decisions the company
has taken have allowed it to maintain a strong level of growth. The move towards a
healthier menu, achieved by making changes to existing items and introducing new
offerings, has helped satisfy some of its critics and attract those who are perhaps more
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McDonalds
health-conscious than the ‘traditional’ McDonald’s customer, while new items such as the
McCafé range are helping the company attract new customers. The message has been
reinforced by a relentless and innovative marketing campaign, which has helped make the
McDonald’s brand one of the most recognized and valuable in the world.
According to the case, below stated problems aroused:
• What are the McDonald’s core brand values? Have these changed over the year?
• McDonald’s did very well during the recession in the late2000s.With the economy
turning around for the better, should McDonald’s change its strategy? Why or why not?
• What risks do you feel McDonald’s will face going forward?
Problem Statement:
McDonald’s has, employed strategies to counter the problem of customer spending, and
the decisions the company has taken have allowed it to maintain a strong level of growth.
The move towards a healthier menu, achieved by making changes to existing items and
introducing new offerings, has helped satisfy some of its critics and attract those who are
perhaps more health-conscious than the ‘traditional’ McDonald’s customer, while new
items such as the McCafé range are helping the company attract new customers. The
message has been reinforced by a relentless and innovative marketing campaign, which
has helped make the McDonald’s brand one of the most recognized and valuable in the
world.
ASSUMPTIONS:
• “Urban sophisticate adults” will be interested in McDonald’s expensive burger

The goal of the Arch Deluxe was to market McDonald’s fine cuisine to the urban adult
demographic. Unfortunately, adults weren’t interested in paying more for slightly different
burgers. The fact that McDonald’s is a fast-food chain limited its main target audience to
those who takes cheap and convenience over sophistication and fine taste. In any case, people
who want to eat refined food and don’t care about the price, would rather go to a formal
dining restaurant instead of a fast-food place.
• They only need to address new target audience for their new product
Another reason it failed was that the market campaign contradicted McDonald’s original
brand of “Child-friendly” and “Family-friendly”. Designing a new burger that excludes
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McDonalds
children and emphasizing luxury consumer groups caused the lost of trust and broke the bond
with former customers.
SWOT ANALYSIS:
Strength:
• Universal franchise.
• Financial position.
• Innovative technology.
• Large market share.
• Specialized manager training.
Weakness:
• Imbalanced meals.
• Supply chain disruption.
• Imitable menu items.
• High dependence on suppliers.
Opportunities:
• Online food delivery industry.
• Focus on Asian markets.
• Innovative offers and products.
• Digital marketing.
Threats:
• Fast growing competition.
• Currency fluctuations.
• Environmental concerns.
• Focus on healthier dieting by consumers.
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McDonalds
1.What are Mc Donald’s core brand values? Have these changed over the
years?
McDonald’s is a highly popular brand in the world. This brand has unique selling
proposition. McDonald’s core brand values are:
• McDonald’s core brand value is “hot high-quality food at a great value at the speed
and convenience of McDonald’s”.
• It delivers same quality products and services around the world.
• The core values of the brand have included quality, cleanliness, service and high
standard value.
• Their core values are reflected in their outlets, the pricing of their products and their
employees.
• Gaining high importance among masses via its 5Ps implementation.
Although the company lost focus during expansion in 80s, the company has learnt from its
mistakes. McDonald’s core values haven’t changed over years and it is still making effort
to improve it such as introduced a new McCafé coffee line, launched a worldwide
repackaging effort, improved the drive-thru service, and responded the health trend.
McDonald has reached this position because of the values the company thrives upon. The
consistent efforts and dedication when it comes to providing quality food that too speedily
to the customers, these all values have remained same since ages and these are the ultimate
success recipe for McDonald’s success.
Segmentation, Targeting and Positioning
Customer perception is a key factor for affecting a product’s success. Many potential
Market segmentation is the process of dividing up mass markets into different groups of
similar needs and wants. The motive behind segmentation is to know the customer in a
much more detailed manner, gaining a competitive advantage and be able to serve the
customer’s needs and wants in a better way.
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McDonalds
SEGMENTATION
McDonald’s uses different types of segmentation to break a bigger market into small
customer groups. They are given below:
Geographic Segmentation: Geographic segmentation divides markets according to
geographic criteria. McDonald’s breaks its business into different geographical segments
like
• America
• Europe
• Asia/Pacific, Middle East, and Africa
• Other Countries (like Canada, Latin America)
Based on their geographic segmentation, McDonald’s optimizes its Menu and food
offerings to suit the regional tastes and needs. For example: Mc Aloo Tikki and Mc Veggie
are available in India, Bacon Smokehouse Burger and Quarter pounder (beef) burger are
available in the USA and Mc Arabia Chicken and Beef Burger are available in Arabian
countries.
Restaurants in several countries, particularly in Asia, serve soup. This local deviation from
the standard menu is a characteristic for which the chain is particularly known, and one
which is employed either to abide by regional food taboos (such as the religious prohibition
of beef consumption in India) or to make available foods with which the regional market
is more familiar (such as the sale of Mc Rice in Indonesia, or Ebi (prawn) Burger in
Singapore and Japan).
In Germany and some other Western European countries, McDonald's sells beer. In New
Zealand, McDonald's sells meat pies, after the local affiliate partially relaunched the
Georgie Pie fast food chain it bought out in 1996.In the United States and Canada, after
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McDonalds
limited trials on a regional basis, McDonald's began offering in 2015 and 2017,
respectively, a partial breakfast menu during all hours its restaurants are open.
Demographic Segmentation:
Segmentation according to demography is based on consumer- demographic variables such
as age, income, family size, socio-economic status, etc. McDonald’s mainly segments the
market in below demographics
• Age: 8-45
• Life cycle stage: Newly married couples, youngest child six
or over Bachelor Stage: Young, single people not living at
home
• Students: Students, employees, professionals
Behavioral Segmentation:
• Degree of loyalty: Hard core loyal and
switchers.
• Benefits sought: Cost benefits, time
efficiency Personality: Easy going and
careless
• User Status: Potential and regular fast-food eaters
Psychographic Segmentation:
Convenience and lifestyle
McDonalds has adopted itself according to the convenience and lifestyle of the consumers,
as India has a huge vegetarian population so McDonalds came up with a different and new
product line which includes items like Mc Veggie burger and Mc Aloo Tikki Burger. They
also made McDonalds as a place to relax and even for entertainment.
TARGETING
After segmentation, the company needs to decide on the Targeting strategy. Companies
need to select the market segments that they want to focus on and put in their future
business strategy. The marketer faces a number of important decisions:
• What criteria should be used to evaluate markets?

• How many markets to enter (one, two or more)?
• Which market segments are the most valuable?
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McDonalds
Below are three factors that are essential for evaluating a potential market segment.
• Segment size and growth

• Segment structural attractiveness
• Company objectives and resources.
McDonald’s target customers are:

• Children: McDonald’s offer a lot of goodies, toys, happy meals etc. to attract this
younger segment audience. The happy meal is ubiquitously known among kids
around the world. In an effort to appease health-conscious parents, fruits such as
apples and orange slices are offered as substitutes for French fries. Yogurt is a
replacement for the cookies that were classically included in the boxed meal, and
fruit juices and milk as alternatives for soft drinks. As young children are very
active with high energy levels, play grounds that allow climbing, crawling and
other moderately strenuous activities are typically included restaurant locations
• Young Adults (Age group between 18-29): Without much thinking, this segment
is the main source of income for any business, let alone McDonald’s. This market
segment may be having a disposable income which is lower than the average, their
consumption patterns are far much more than old the other market segments.
Advertising which includes trendy music and images of youths enjoying
McDonald’s food while engaging in vigorous and energetic activities is the
predominant integrated communications for the young adults.
• Adults: The third segment is the adults’ segment, in order to target this segment,
McDonald’s tweaked its menu and made its offering less in calories and healthy.
• Business Customers: In an effort to attract and retain these customers, lighter and
healthier food offerings are replacing traditional fat-laden foods at McDonald’s.
The franchise firm is attempting to lure business customers with foods that are
fresh, organic and sustainable. Advertising is geared toward information which
provide U.S Department of Agriculture guidelines for dietary recommendations,
and include sample menu suggestions which are based on gender, age, weight and
daily physical activity levels. Breakfast and lunch meals are most often consumed
by business customers.
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McDonalds
POSITIONING
Positioning refers to decisions about how to present the offer in a way that resonates with
the target market. In order to position the products correctly in the target markets,
McDonald’s uses segment insights or information about the consumer behavior that are
developed through market research. The insights focus on the values, needs and lifestyle
of each segment.
Using these insights, McDonald’s create a positioning profile for every product and then
the creative team uses these profiles to create ads targeted to relevant segments as well as
to the general population. This concludes the positioning of McDonald’s.
1. Mc Donald did very well during the recession in the 2000s. With the
economy turning wound for the better, should McDonalds change its
strategy? Why or why not?
The company created a more affordable menu for people who were affected by economic
downturn, The products of the company are preferable than the other options when people
have a thin time of it the company should definitely stick with their strategy even now
because if it has done well in financially trying times, it is favoured to do well when the
situation eases. The products can be priced cheaper than most of the other restaurants would.
Certain changes can be made to the existing strategy after in-depth study of the current.
During 2000s McDonald’s did very well in the recession period but failed to acquire profit
so later o it applied the “Plan to win” strategy and again McDonald’s was on track.
McDonald’s changed its menu and strategy plans after a documentary “Supersize Me”
targeted McDonald’s for its unhealthy obese foods. It also put effort in new packaging which
included bold text and full colour photographs of real ingredients. The company created a
consciousness about its strategy focused on being cheap and healthy. So, it should not
change its strategies about price. If the company changes its focus and increases the price, it
can lose the loyalty of the customers. But the company can enhance its strategies and
increase the quality of services and products. After the financial downturn, the customers
could stick to the company, because of the strategy of the company focused on being cheap
and quality. It can be changed at a certain point. Changes can be made to leverage on
improved economic conditions of the global market to maintain their edge among their
competitors
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McDonalds
Marketing Strategy: 5Ps
Product: Product consists of how the company must design, manufactures the products
which improve the experience of every customer. Product refers to physical product and
services provided by the business to its patron. McDonalds includes specific aspects of its
service and products like packaging, looks and desirability. This includes non-tangible and
tangible features of the services and product. McDonalds has intentionally kept its product
depth and width limited. McDonalds had studied the manners of the Indian clients and
totally provided various menus as compare to its menu presented in world market. The
company eliminates beef, mutton and pork burger from their menu. India is just country
wherein McDonalds offer vegetarian menu. As well as the cheese and sauce use are pure
vegetarian. The company constantly improves its product and service in accordance to the
fast-changing desires and tastes of its consumers. One of the good examples is the
launching of Chicken Maharaja Mac and the Chicken McNuggets.
As a food service business, McDonald’s has a product mix composed mainly of food and
beverage products. This element of the marketing mix covers the various organizational
outputs (goods and services) that the company provides to its target markets. McDonald’s
product mix has the following main product lines:
I. Hamburgers and sandwiches

II. Chicken
III. Snacks and sides
IV. Beverages
V. Desserts and shakes
VI. McCafé
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McDonalds
Among the 5Ps, products are a fundamental determinant of McDonald’s brand and corporate
image. The company is primarily known for its burgers. However, the business gradually
expands its product mix. At present, customers can purchase other products like chicken and
fish, desserts, and breakfast meals. McDonald’s generic strategy and intensive growth
strategies influence the product lines included in this element of the marketing mix. In
diversifying its product lines, the company satisfies market demand, improves its revenues,
and spreads risk in its business. In terms of risk, a more diverse product mix reduces the
company’s dependence on just one or a few market segments. This element of McDonald’s
marketing mix indicates that the firm innovates new products to attract more customers and
improve its business stability.
Place: The place for the most part includes distribution outlet and channel of the business.
It is very essential because the service or the product should be accessible to the consumers
at the right time, right place and right quantity. In United States almost 50% of McDonald’s
outlets are located three minutes away from each other. There are specific level of
happiness and fun which McDonalds offers to its consumers. It offers value position that
based on the requirement of the consumer. This element of the marketing mix enumerates
the venues or locations where products are offered and where customers can access them.
Restaurants are the most prominent places where the company’s products are distributed.
However, the business utilizes various places as part of this 5P variable. The main places
through which McDonald’s distributes its products are as follows:
I. Restaurants
II. Kiosks
III. McDonald’s mobile apps
IV. Website and app, and others
McDonald’s restaurants are where the company generates most of its sales revenues. Some
of these restaurants also manage kiosks to sell a limited selection of products, such as sundae
and other desserts. Some kiosks are temporary, as in the cases of kiosks used in professional
sports competitions and other seasonal events. This element of McDonald’s marketing mix
also involves the company’s mobile apps. These virtual places are where customers can
access information about the company’s products and buy these products. For example, the
company’s mobile apps for iOS and Android let customers claim special deals, find
restaurant locations, place orders, and pay for such orders involving
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McDonalds
participating McDonald’s restaurants. Furthermore, customers can place their orders

through the website and mobile app. This element of the marketing mix supports
McDonald’s corporate vision and mission statements, especially in serving more customers
around the world.
Price: Pricing strategy is one of the most significant aspects when it comes to marketing.
This includes price breakdown, when any discount service or payment available. Business
should also consider the possible reactions from its rivalry when it comes to pricing. Pricing
strategy was developed in order to attract middle- and lower-class individual and the result
can clearly be seen the customer base which McDonalds has at present. McDonald’s
restaurant has specific value pricing as well as bundling strategy like combo meal, happy
meal, family meal and happy price menu in order to improve total sales of the service and
product
This element of the marketing mix specifies the price points and price ranges of the
company’s food and beverage products. The aim is to use prices to maximize profit margins
and sales volume. McDonald’s uses a combination of the following pricing strategies:
I. Bundle pricing strategy

II. Psychological pricing strategy
In the bundle pricing strategy, McDonald’s offers meals and other product bundles for prices
that are discounted, compared to purchasing each item separately. For example, customers
can purchase a Happy Meal or an Extra Value Meal to optimize cost and product value. On
the other hand, in psychological pricing, the company uses prices that appear significantly
more affordable, such as $ .99 instead of rounding it off to the nearest dollar. This pricing
strategy helps encourage consumers to purchase the company’s products based on perceived
affordability. Thus, this element of McDonald’s marketing mix highlights the importance of
bundle pricing and psychological pricing to encourage customers to buy more products
improve total sales of the service and product.
Promotion: Advertising through television, radio, and billboards are great ways that
McDonald’s promotes their products and service. Over the years McDonald’s has used
several slogans to leave an impression in people’s heads. Some of these include “It’s a good
time for the Great Taste of McDonald’s,” “Food, Folks, and Fun,” “We love to see you
smile,” and the most recent slogan, “I’m Lovin’ it.” All of these slogans have been used over
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McDonalds
the years to promote McDonald’s and by doing so people remember the name and have
become accustomed to visiting nearby locations.
Another strategy that McDonald’s used over the years was to promote their figure head,
Ronald McDonald. There has also been a television show called, The Wacky Adventures
of Ronald McDonald,” which have variously been released between 1998 and 2003. This
show was great promotion for children and McDonald’s because it only happened a very
limited number of times so kids were so excited when they actually got to experience it and
it allowed for McDonald’s to expand revenues.
McDonald’s continues to promote by using several athletes and celebrities to endorse their
products. During the 2008 Olympics in Beijing, McDonald’s featured nine Olympic and
Paralympic Athletes on their cups and packages. McDonald’s also held a Marketing
Campaign in Australia where there people could decide the name of a new burger about to
be introduced. By doing such things McDonald’s is creating a better brand image and thus
making greater profits.
This element of the marketing mix defines the tactics that the business uses to communicate
with customers. Among the 5Ps, this variable focuses on marketing communications with
target customers. For example, the company provides new information to persuade
consumers to purchase new products. McDonald’s uses the following tactics in its
promotional mix, arranged according to significance in the business:
I. Advertising (most significant)
II. Sales promotions
III. Public relations
IV. Direct marketing
Advertisements are the most notable among McDonald’s promotion tactics. The corporation
uses TV, radio, print media and online media for its advertisements. On the other hand, sales
promotions are used to draw more customers to the company’s restaurants. For example,
McDonald’s offers discount coupons and freebies for certain products and product bundles,
as a way of attracting more consumers. In addition, the company’s public relations activities
help promote the business to the target market through goodwill and brand strengthening.
For instance, the Ronald McDonald House Charities and the McDonald’s Global Best of
Green environmental program support communities while boosting the value of the
corporate brand. Occasionally, the company uses direct marketing, such as for corporate
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McDonalds
clientele, local governments, or community events and parties. In this element of its
marketing mix, McDonald’s Corporation emphasizes advertising as its main approach to
promote its products.
People: McDonalds understands the significance of both consumers and employees. It
understands the truth that happy workers can serve properly and led in happy customers.
McDonald’s restaurant constantly does Internal Marketing as this strategy becomes
effective it will lead automatically to the success of external marketing.
McDonald’s does a lot of internal as well as External Marketing. They have found that it
is extremely important to show employees the proper respect and courtesy that they deserve
and by allowing for them to give input about things they think should be improved or
worked on is a great way of keeping everyone happy. If customers didn’t feel a great sense
of appreciation when they walk into a location, they are much less likely to come back and
be repeat customers. By doing research and taking surveys, McDonald’s executives are
finding out what people want and making sure that customers and employees are
completely satisfied. McDonalds has a target group of Families with children because it is
considered a treat for the children and easy for the parents. It is considered more of an open,
public atmosphere when compared to a fancier sit down restaurant. They offer playgrounds
and toys for the children at many locations. McDonald’s also targets people without a lot
of time who need a quick meal. They offer a drive through for convenience, which brings
you delicious food to you fast and at a convenient price.
Ansoff’s Matrix in the Marketing strategy of McDonald’s
For McDonald’s the marketing strategy that the company can apply is the Ansoff’s matrix.
Based on the application of the Ansoff’s matrix, McDonald’s can develop strategies for the
future growth of the organization (Mcdonalds.com 2019). The reason for the application
of this strategy for McDonald’s is the fact that the company need to regain its popularity in
the international market since in many of the countries particularly in Asia, McDonald’s
have failed to maintain its dominance and had to forfeit its business (Mcdonalds.com
2019). Thus, product-market strategy can be considered as a joint statement that defines
the product line of the company (Mcdonalds.com 2019).
The application of Ansoff’s matrix can be done based on four metric points that can help
in the growth of an organization. Each of the four-growth matrixes can help in
understanding a current scenario at the organizations and thus, based on its understanding
of the knowledge products can be offered at the existing market. For McDonald’s the
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McDonalds
growth scenario can be the offering of products and services so that it can gain its
reputation back in the market and ensure that proper market development takes place. It
can increase its market share and ensure that existing market segments can be identified
by the sale of the products and services.
Figure: Ansoff’s matrix of McDonald’s

From the figure, it can be seen that each of the growth matrix have certain criteria which is
needed to be achieved by the organizations. For McDonald’s it is necessary that the
company apply the reduction of the pricing strategy so that it can ensure market penetration
(Mcdonalds.com 2019). At the same time, it can improve the promotion and distribution
support by the use of social media. As pointed out by Lovelock and Patterson (2015) these
strategies are considered as the least risky growth option that can help in the development
of McDonald’s in the competitive market.
2. What risks do you feel McDonalds will face going forward?
Health-conscious consumers might move to brands offering healthier options. McDonald’s
should offer more premium options and establish itself as a provider of normal goods while
maintaining the value that its customers expect. Changing tastes and lifestyles pose a big
threat. The company will need to adapt to changes to be able to tackle such problems
effectively Competition from local fast-food chains as they have to focus only on a small
area. Training employees rapidly and effectively during expansion drives. Rivals of
McDonald’s like Subway, Burger King are offering more customized offerings which could
bring problems to the brand. Rise in competitors in the market. The rate of its expansion is
very fast which might lead to dip in its quality. Company should also take care of the cases
where people use the company’s brand symbol as it may diminish the brand value and hinder
their upgoing trend.
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McDonalds
MCDONALD'S CORPORATION PORTER’S FIVE FORCES ANALYSIS
Porter Five Forces Analysis is a strategic management tool to analyze industry and
understand underlying levers of profitability in a given industry. McDonald's Corporation
managers can use Porter Five Forces to understand how the five competitive forces
influence profitability and develop a strategy for enhancing McDonald's Corporation
competitive advantage and long-term profitability in Restaurants industry.
Porter Five Forces is a holistic strategy framework that took strategic decision away from
just analyzing the present competition. Porter Five Forces focuses on - how McDonald's
Corporation can build a sustainable competitive advantage in Restaurants industry.
Managers at McDonald's Corporation can not only use Porter Five Forces to develop a
strategic position with in Restaurants industry but also can explore profitable opportunities
in whole Services sector. The forces are given below:
• Threats of New Entrants: New entrants in Restaurants brings innovation, new

ways of doing things and put pressure on McDonald’s Corporation through lower
pricing strategy, reducing costs, and providing new value propositions to the
customers. McDonald's Corporation has to manage all these challenges and build
effective barriers to safeguard its competitive edge.
How McDonald’s Corporation can tackle the Threats of New Entrants:
1. By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy McDonald's
Corporation ‘s products.
2. By building economies of scale so that it can lower the fixed cost per unit.
3. Building capacities dynamic industry where the established players such as
McDonald's Corporation keep defining the standards regularly and spending money
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McDonalds
on research and development. New entrants are less likely to enter a. It significantly
reduces the window of extraordinary profits for the new firms thus discourage new
players in the industry.
• Bargaining Power of Suppliers: All most all the companies in the Restaurants
industry buy their raw material from numerous suppliers. Suppliers in dominant
position can decrease the margins McDonald's Corporation can earn in the market.
Powerful suppliers in Services sector use their negotiating power to extract higher
prices from the firms in Restaurants field. The overall impact of higher supplier
bargaining power is that it lowers the overall profitability of Restaurants.
How McDonald’s Corporation can tackle the Bargaining Power of the Suppliers:
1. By building efficient supply chain with multiple suppliers.

2. By experimenting with product designs using different materials so that if the prices
go up of one raw material, then company can shift to another.
3. Developing dedicated suppliers whose business depends upon the firm. One of the
lessons McDonald's Corporation can learn from Wal-Mart and Nike is how these
companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third-party manufacturers have
significantly less bargaining power compare to Wal-Mart and Nike.
• Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by paying
the minimum price as possible. This put pressure on McDonald's Corporation profitability
in the long run. The smaller and more powerful the customer base is of McDonald's
Corporation the higher the bargaining power of the customers and higher their ability to
seek increasing discounts and offers.
How McDonald’s Corporation can tackle the Bargaining Power of the Buyers:
1. By building a large base of customers. This will be helpful in two ways. It will
reduce the bargaining power of the buyers plus it will provide an opportunity to
the firm to streamline its sales and production process.
2. By rapidly innovating new products. Customers often seek discounts and offerings
on established products so if McDonald's Corporation keep on coming up with new
products, then it can limit the bargaining power of buyers.
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McDonalds
3. New products will also reduce the defection of existing customers of McDonald's
Corporation to its competitors.
• Threats of Substitute Products or Services
When a new product or service meets a similar customer need in different ways, industry
profitability suffers. For example, services like Dropbox and Google Drive are substitute
to storage hardware drives. The threat of a substitute product or service is high if it offers
a value proposition that is uniquely different from present offerings of the industry.
How McDonald’s Corporation can tackle the Threat of Substitute Products and
Services:
1. By being service oriented rather than just product oriented.

2. By understanding the core need of the customer rather than what the customer is
buying.
3. By increasing the switching cost for the customers.
• Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. McDonald's Corporation
operates in a very competitive Restaurants industry. This competition does take toll on the
overall long-term profitability of the organization.
How McDonald’s Corporation can tackle the Intense Rivalry among the Existing
Competitors in Restaurants Industry:
1. By building a sustainable differentiation

2. By building scale so that it can compete better
3. Collaborating with competitors to increase the market size rather than just
competing for small market.
• Service Differentiation: The service differentiation strategy implies that
McDonald’s shall offer superior services at each step of the customer touch points
right from the placement of order through the delivery of the products. Managers
of McDonalds are trained professionally. As a result, they can train employees well.
McDonald’s employees are evaluated high by customers because of their behaviors
as well as attitude. However, customers are not pleased at the idea of waiting in
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long lines and insufficient employees to handle the volume of customers. Just the
minority, but sometimes the employees are rude forcing the customers to go to a
competitor’s restaurant next time. At the market which has high market share and
very huge number of customers such as USA, Canada or United Kingdom, this
issue occurs more frequently. McDonalds should find a way to solve it. For
example, the company has to rent more employees and increase their salary in order
to keep them working for a long time. This time is just enough for them to get skills
to service customers well. Besides, it is necessary to increase the number of
employees at the weekend or in the lunch time. More employees means that
pressures are shared and avoid the bad attitudes.
• Personnel Differentiation: The availability of well-trained staff is essential for
delivery of high-quality service to the customers. McDonald's should continue to
invest in the training and development of its employees to ensure high service
quality. Well-structured training programs shall ensure the long-term growth of the
organization.
• Integrated Promotional Mix: McDonald’s can implement an integrated
promotion mix that has a balance of both traditional and modern digital media
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CONCLUSION
McDonalds uses social media in the form of commercials, radio ads, and other ads posted
on Instagram, Facebook, and twitter to advertise many of its products. Through social
media McDonalds reaches a younger audience through its many promotional ads posted
online. By hooking in all different targets and not focusing on one particular group of
people to target it allows them to increase its sales. Because technology is so widely used
by many different groups of people, McDonalds would greatly benefit if it is up to date
with all of the information systems that are being used. For example, some McDonalds use
the E- Payment which allows customers to order and pay through the iPhone 6, 6plus and
apple watch.
This makes ordering easy for only a few because not every McDonald’s is implementing
this system. They cannot limit this only to Apple users because not everyone is 100 percent
Working together is the only option to advance so they need to collaborate not only with
apple but other companies as well.
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REFERENCE
• Purdy, Chase (April 25, 2017). "McDonald's isn't just a fast-food chain—it's a
brilliant $30 billion real-estate company". Quartz. Retrieved November 23, 2021.
• Maze, Jonathan (February 26, 2015). "Why McDonald's won't ever get rid of its real
estate". Nation's Restaurant News. Retrieved November 23, 2021.
• Blomkamp, Samantha (June 13, 2016). "MacDonald’s HQ Move Is Boldest Step Yet
in Effort to Transform Itself". Chicago Tribune. Retrieved May 1, 2017.
• "Enrique Hernandez, Jr". McDonalds.com.
• Cain, Áine. "McDonald's drive-thus are 'not suitable for horses' — and 11 other
insider facts about McDonald's those employees know and most customers
don't". Business Insider.
• "MCDONALDS CORP, 10-K". February 22, 2019. Retrieved April 17, 2020.
• "McDonald's Corporation 2017 Annual Report Form (10-K)" (PDF). United States
Securities and Exchange Commission. February 23, 2018. Retrieved August
21, 2018
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AMAZON COMPANY
INTRODUCTION:
Amazon is a cloud computing giant and the largest American e-commerce company. It
was founded in 1994 by Jeff Bezos.
Originally known for selling books through its website (and later digital versions via its
Kindle e-reader), Amazon has built up a customer service, inventory, and shipping empire
that allows the site to offer everything from clothes to lawn furniture to janitorial supplies.
It also sells digital content like movies, music, and apps. Its Amazon Web Services arm is
a multibillion-dollar provider of cloud-based services for millions of business customers
around the world, including government agencies and universities. And it’s a major player
in consumer electronics--not only by offering devices such as Fire tablets and TV boxes,
but also via its Alexa AI assistant service, which made news at the CES 2017 gadget show
by being built into everything from LG refrigerators to Ford cars.
Amazon is even a Hollywood player, taking home two awards at the 2017 Golden Globes.
Yet the basics of Bezos's business philosophy--focusing on long-term customer loyalty
over short-term profits and never-ending expansion into new businesses--have been
surprisingly consistent over the years. And Amazon's obsession with efficiency explains
why it's now delivering products in just two hours via its Prime Now service, and why it
hopes to be among the first e-commerce companies to deploy its own fleet of drones with
Amazon Prime Air, a future fleet of autonomous aerial vehicles that will deliver packages
under five pounds.
In an interesting twist, Amazon has made significant investments in brick and mortar,
opening its first bookstore in Seattle in late 2015 and since then expanding to 13 locations.
In 2017, the company completed its acquisition of Whole Foods and in early 2018 opened
an Amazon Go grocery store to the public at the company's headquarters in Seattle.
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Executive Summary:
In this world of digitization, digital marketing is a vogue that is sweeping across the whole
world. The trend of digital marketing is growing day by day with the concepts of Internet
marketing that is turning into an important platform of digital marketing along with the
electronic gadgets like the digital billboards, mobile, tablets and smart phones, gaming
consoles, and many such gadgets that help in digital marketing. Amazon with its innovative
digital marketing has created a niche market in online stores competing with the
conventional stores showing the power of online marketing. The case study analyses how
Amazon.com has brought in an array digital and online marketing strategies to succeed and
make it big in the digital marketing sector. The case also discusses how Amazon has had a
huge success in the online marketing sector as they brought in new insights into the digital
marketing field. And few years from now it will be eventually seen that the conventional
marketing being replaced by digital marketing. Digital marketing is going to be top on the
agenda of many marketers, and they might be looking for innovative ways to market online,
reduce cost per lead, increase click-through-rates and conversion rates, and discover what’s
hot in digital marketing.
Case study of Amazon.com:
Amazon was founded by Jeff Bezos in Bellevue, Washington, in July 1994. The company
initially started as an online marketplace for books but later expanded to sell electronics,
software, video games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon
surpassed Walmart as the most valuable retailer in the United States by market capitalization
In 2017, Amazon acquired Whole Foods Market for US$13.4 billion, which vastly increased
Amazon's presence as a brick- and-mortar retailer.[20] In 2018, Bezos announced that its
two-day delivery service, Amazon Prime, had surpassed 100 million subscribers worldwide
Amazon.com is an Indian e commerce company headquartered in Bangalore. Amazon.com,

India’s largest e-commerce player for physical goods started with books in 2007 and entered
the consumer electronics category with the launch of mobile phones, in September 2010.
Since then, it has grown rapidly with the introduction of innovative features like Cash on
Delivery (Cod), 30-day replacement guarantee and its own delivery network. Today, their
portfolio is spread across 12 categories – from books to music, mobiles, computers, cameras,
home & kitchen appliances, TV & home theatre systems, personal and healthcare products
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and the newly launched stationery items. In addition to these, Amazon has also made a foray
into the emerging digital content market with the recent launch of Flute, the digital music
store. The founders of Amazon have probably conquered their dreams with the amazing
success of Amazon. Amazon is something which has really opened up the Indian e-
commerce market and that also in a big way.Amazon was born with an initial investment of
4 lakh. It was never going to be easy since India has had bad past experiences with e-
commerce trading. It was not an easy segment to break into, people were very particular in
paying money for something which they had not seen and received. The trust was missing
in the Indian customers. So, what Amazon had to do was to instill trust and faith in their
customers. Amazon began with selling books, since books are easy to procure, target market
which reads books is in abundance, books provide more margin, are easy to pack and deliver,
do not get damaged in transit and most importantly books are not very expensive, so the
amount of money a customer has to spend to try out one's service for one time is very
minimal. Amazon sold only books for the first two years. Amazon started with the
consignment model (procurement based on demand) i.e., they had ties with 2 distributors in
Bangalore, whenever a customer ordered a book, they used to personally procure the book
from the dealer, pack the book in their office and then courier the same. In the initial months
the founder's personal cell numbers used to be the customer support numbers. So, in the start
they tried their best to provide good service, focus on the website - easy to browse and order
and hassle-free, and strove hard to resolve any customer issues. Since there were not any
established players in the market, this allowed them a lot of space to grow, and they did in
fact grew very rapidly.
The company started opening its own warehouses as it started getting more investments. The
company opened its first warehouse in Bangalore and later on opened warehouses in Delhi,
Kolkata and Mumbai. Today the company works with more than 500 suppliers. As on date
more than 80% orders of Amazon are handled via warehouses which help in quick and
efficient service.Amazon derives around 50% of its revenue from selling books online.
Amazon is the Indian market leader in selling books both offline and online, it enjoys an
online share of around 80%. Amazon ships around 40000+ items on a daily basis. The
average daily revenue is about INR 2.5 crore. 15+ million Titles are available on Amazon
books. There are 2.6 million registered users on Amazon.4500 employees working in
Amazon at the moment. Apart from this Amazon have 1.5 + million fans on face book and
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about 67000 followers on twitter which shows its vast reach in social media. Social Media
Marketing is used to the hilt, by Amazon.com In its social media initiatives, Amazon.com
aims at facilitating an easier conversation channel for customers and users. Conversations
are to the point and are targeted at specific issues, thoughts and ideas. Amazon.com began
activities to make its presence felt on Facebook and Twitter about a year ago. The company
has also used LinkedIn to connect with people. The popularity of the site has grown through
recommendations i.e., people recommending the site to their family, friends and co-workers.
And what better platform than social media to leverage ‘word-of-mouth’! Amazon.com
recognized that using social media is about being human.
Questions:
1. What is the digital marketing strategy of Amazon?

2. What are the strategies of amazon to overcome the competition of conventional
stores?
ASSUMPTIONS:
• Amazon Thinks of Ideas as Assets

Most companies think of their assets as being things like their plants, equipment, and yes,
their people. Amazon also places an asset value on ideas. Bezos is the idea or in chief. His
zest for unconventional concepts, for enabling technologies, and for better ways of
operating, is infectious. “I could fill this whiteboard in an hour with 100 ideas,” Bezos
boasted to one interviewer, and there is little reason to doubt him.
Bezos believes that a continuous stream of ideas is what fuels growth. He sees his function
as creating the cultural alignment to value and respect ideas at all levels, and act with a sense
of urgency to speed their implementation. Bezos sees his role as channeling this
“opportunity mindset” to every individual, department, business unit, and outpost.
• Social factors:
They have diverse impacts on Amazon’s performance. The changing trends in online
shopping present an opportunity to the company. People’s faith in online transactions is
increasing, and this is presenting an opportunity to online retailers to grow their
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sales. Developing countries are also embracing online transactions, and this trend is
increasing the market potential in these countries. Amazon has been focusing on developed
countries with little or no focus on developing countries. Developing countries are growing
fast leading to an increasing purchasing power thus creating a valuable opportunity for
Amazon and other online sellers.
• The technological environment:

The environment is dynamic an online seller who is serious about long term success must
closely monitor this environment to ensures strategies reflect the environmental conditions.
The increasing internet connectivity in developing countries provides an opportunity for
growing sales in these countries. There has also been an increasing information technology
in both developing and developed countries, and this is providing a valuable opportunity for
online sellers to enhance their operations. The dynamics in technology increases the risk of
technological obsolescence, and this presents both opportunities and threats to Amazon.
Concerning the opportunity, the company sells phones and tablets among other technical
devices implying that the demand for the products would increase as customers seek to
acquire more modern devices. On the other hand, the risk can lead to the company holding
an obsolete stock that would lead to huge losses.
SWOT ANALYSIS:
Amazon.com has become the king of its own private little industry. The only problem with
being the king is that everyone wants your throne. While Amazon.com has many strengths
and opportunities it has threats and weaknesses, too.
Strengths:
• Well established web brand.
• Loyal customers base of over 12million shoppers.
• Distribution facilities to handle growth and fulfillment.
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• Leader in use of technology to delivery targeted content.

• Excellent offline customer service.
• Amazon has moved away from being a low-price supplier of books toward a focus
on delivering outstanding service at a price.
Weaknesses:
• Too much diversity in their product line and Amazon.com could risk damaging its
brand name. There is the potential for confusing their clients.
• Shipping costs could be a deciding factor on whether a customer buys from
Amazon.com or goes to a traditional store. More online retailers are offering free or
discounted shipping such as Wal-Mart, offer site-to-store free shipping.
• Need to restructure business to drive toward profitability have meant upward
pressure on prices.
• No offline brand presence.
• Insufficient community added value.
• No telephone support.
Opportunities:
• Opportunity to establish itself as a global mass merchant leader in the online
shopping arena.
• Building community events around the brand would help create brand affinity as
well as loyalty.
• Establish 24×7-hour telephone support for customers and order processing.
• Frequent shopper discounts will increase retention and repeat purchases.
• Further offline partnerships can potentially help Amazon by allowing customers to
return products offline stores.
• Amazon has an opportunity to create a higher international market segment.
• Also, can make Strategic alliances with companies.
Threats:
• Competitors such as Barnes and Noble, eBay.com, and half.com.
• Book publishing companies could start up own website and get rid of the middleman
companies.
• The continuous changing of trends in the marketplace.
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• Amazon’s lack in-depth community leaves it exposed to customer being attracted to

competitors with more in-depth content.
1. What is the digital marketing strategy of Amazon?
There are various strategies that Amazon has implemented, few are stated below:
• Customer’s Review:
Amazon customer review service has been one of the fundamentals of digital marketing
services. While browsing the Amazon website a user comes across reviews, before and after
the purchase.
Reviewing services are now very common and have been implemented by various websites,
amazon has provided a blueprint for the companies that how to implement a model that would
efficiently.
A customer can rate, write reviews, and upload a picture of the product as per their
experience. Reviews are considered to be very important because while purchasing
something online customers can’t touch or test the product before they have made the
purchase and the product has been delivered; reviews provide indicators of the quality of the
product to the buyer.
Amazon also provides community moderation by encouraging customers to vote with the
option “Helpful” on the relevance and utility of the reviews left by other customers and
customers can ask a direct question about the product as well.
• Free Shipping and Discounts:
The free shipping method helps in increasing the customer purchasing limit. Although if it is
applicable on order above 1000 rupees, the customer would try to reach that amount by
increasing basket size to avoid additional charges. Eventually, it is a very beneficial deal for
them.
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Amazon provides multiple discounts on various products which are not possible to get in
offline stores; hence more customers are driven towards purchasing offline.
• Communication with the Customer:
Nowadays every e-commerce company notifies customers about their order confirmation,
delivery date estimates, shipment, and delivery notification.
However, 15–10 years ago it wasn’t possible to provide such services easily by every
company. Most importantly, Amazon has been setting models for other e-commerce
companies back then. As an example, in the American customer satisfaction index, amazon
got a score of 88. And it was the highest customer score ever for any online or offline services
industry.
• Creative Digital Marketing Campaigns:
Through Digital Marketing Campaigns, a company promotes its product on online platforms.
It facilitates them with more sales and increases brand awareness.
In India successful campaigns of Amazon are:
#AurDikhao
#DiwaliOnAmazon
#EkBarAmazonTryTohKar
Digital platforms that are used for Digital Marketing campaigns are Email, social media,
Google AdWords’, etc.
• Innovation and Technology:
Amazon has achieved various milestones in the world of technologies and eventually making
its lead in the Digital Marketing world. Using Machine learning, Artificial Intelligence, and
Computer vision.
Some examples are stated below:
Amazon Go: It is a new kind of store with no checkout and no line. It uses the “Just Walk
Out” technique. Using the app, customers can enter the store, take the product they want. It
will automatically add to the virtual cart, so, they can just walk out of the store.
Amazon achieved the vision by Deep Learning Algorithms, Computer vision, and sensor
fusion.
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Amazon Prime: It is a paid yearly subscription that provides fast and free shipping as
compared to normal Amazon service and also provides accessibility of unlimited streaming
of TV shows and movies.
Alexa: Alexa is Amazon’s voice responding virtual assistant. Just like Siri is for Apple,
Google Assistant for Google.
Kindle: It is an e-reader that enables users to browse, buy, download, and read books,
newspapers, and magazines from the Kindle Store.
Amazon Food: Amazon begins the food delivery business in India. Getting in competition
with Swiggy and Zomato. Importantly, the company has launched services amid COVID-19
when food ordering has been down by 80%. And also, providing services on the regular app
with availability at selective parts of Mumbai and Bangalore.
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• Amazon “Make in India” Initiative

Jeff Bezos visited India in January 2020 and faced a backlash from Indian traders because of
the e-commerce company’s popularity and expansion, many small traders’ occupation has
been jeopardized.
He then assured that Amazon will plan to sell $10 billion worth “Made in India” goods
globally by the end of 2025. With this strategy, Indian sellers will get access to millions of
customers across 180+ countries. Moreover, Amazon announced $1 billion for digitizing
Small and Medium Enterprises. After completion of this initiative, numerous traders will get
the opportunity to sell their products to a huge audience in India as well as globally.
In conclusion, Amazon through its successful digital marketing approach will give an
opportunity to Indian traders to make its huge impact on the global market.
2. What are the strategies of amazon to overcome the competition of

conventional stores?
• They focus on the customer:
Many companies talk about customer focus but Amazon walks the talk. Its customer
obsession is unparalleled. It led to the establishment of Amazon Web Services (AWS), a
business that is worth over $10 billion now.
A CNBC article says, "AWS was designed to solve the problems with too-expensive in-
house application hosting and open-source products that weren't robust enough to easily
support fast-growing or already-large companies."
Amazon's culture of listening to customers, instead of competitors has enabled it to get ahead
of the market as it's able to think for itself, instead of blindly following what other brands
are doing.
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"Many companies," Bezos once said, "describe themselves as customer-focused, but few
walk the walk. Most big technology companies are competitor focused. They see what others
are doing, and then work to fast follow."
If you want to stay a step ahead of your competitors, focus on your customers first. Doing
so can have benefits well beyond competitive advantage. I've seen this in action--back in
March, I wrote about how Live Chat was been able to grow to over 19,000 customers
through obsessive customer focus rather than marketing.
• Take risks:
Despite monumental failures, Amazon willingly takes risks.
Although investors are calling for him to curb spending, Bezos believes avoiding failure is
the wrong strategy. He says it would be a bigger problem if a company stopped taking risks.
He made this observation at Business Insider's Ignition conference in December 2014.
"A few big successes compensate for dozens and dozens of things that didn't work," he said,
pointing to Amazon's gains from its Kindle tablet, data center business and third-party online
marketplace. "Bold bets ... pay for a lot of failures. I've made billions of dollars of failures
at Amazon.com."
It does not matter the mistakes you make while taking risks, what matters are the
breakthroughs you record from a few of the things you're willing to try.
Last year, I convinced the development team at my company to stop what they were doing
to work on a crazy marketing idea. While the end result didn't fully live up to expectations,
the experiment drove our team to discover a new revenue opportunity. That's still a win.
• Give workers a stake in the company:
In A Stake in the Outcome, authors Jack Stack and Bo Burling ham say creating a culture of
ownership enables organizations "to tap into the most underutilized resource in business
today--namely, the enthusiasm, intelligence, and creativity of working people everywhere."
Amazon leverages this to fight off competition in the marketplace. It is obsessed with its
internal customers (employees) alongside the external. It uses stock options in hiring.
Whether it's stock, bonuses or profit sharing, giving workers a stake in the success of your
company motivates and empowers them to put in their best.
• Differentiate or die:
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Author Jack Trout writes in “Differentiate or Die” that differentiation lies at the heart of
successful marketing. He outlines the many ways you can differentiate and carve out your
own image in a crowded marketplace. He also warns how difficult it is to achieve
differentiation by being creative, cheap, customer-oriented, or quality-driven; things that
your competitors can do as well.
Dr. Tony Grundy, a lecturer at Henley Business School, says Amazon is worth studying not
just because of its competitive scope, but also because of its differentiation strategy.
A differentiation strategy is where the product or service is either perceived to be, or is, of
superior customer value and has a definite price premium. A cost leadership strategy is
where the price may be similar or usually lower than the competition, but costs are certainly
lower.
The International School of Management Excellence says cost leadership, customer
differentiation, and focus strategies have helped Amazon to enhance its competitive
advantage.
To fend off competition, you've got to differentiate and stand out in the marketplace, like
Amazon.
• Rise of Social Media Marketing in India
At 82 million monthly active users, India is the second largest audience base for Facebook
in the world and it may possibly dethrone US on Facebook soon. India is positioned second
for user population of LinkedIn at 20 million users, while for YouTube and Twitter user
population from India goes up to 52 million and 42 million. There is easier and cost-effective
access to middle class to upper middle-class people in India, that are mostly young and
capable to spend large amounts, and they’re target audience to almost all brands.
Interestingly, local businesses are using social media especially Facebook to sell online in
India. Hence, we can expect an unprecedented growth in social media users in India that will
help social media marketing to experiment and become more popular tool for branding,
online selling and customer engagement among businesses/brands.
• Content Marketing
Content Marketing will be throughout in limelight. In India, people are extensively
searching, researching and consuming content – text, audio (not that popular), image and
video. Largely, social media networks are pushing for improved, meaningful and creative
content marketing. Text is the foremost tool in SEO that will easily help you acquire higher
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ranks, reach targeted audience, engage your audience and convert them. It’s at the top of all
the game that you maybe planning. Images are usually subordinate to text and complement
it, and they are highly popular among Indians. Images are known to trigger imagination and
help in building trust. India has 54 million viewers that are spending uncountable hours to
watch 3.7 billion videos per month. Brands in India are now realizing the power of video
marketing and now developing creative and innovative video marketing campaigns to build
their brand identity. All – text, image and video – constitute your content marketing. And
more and more brands, businesses and organizations in India will understand its importance
and will use it optimally in coming years.
• Key Performance Indicators and Return on Investments

Brands and businesses were only investing without caring much for the returns on digital
marketing. The ‘conversion rate’, ‘key performance indicators’ and ‘return on investments
will catch in trend across all sections of digital marketing in India. With the availability of
deep analytics and increasing awareness of clients in India, the marketers will have to
explain digital marketing ROI. Furthermore, Indian digital marketing consultants will use
KPIs and ROI to improve their conversion rate, enhance customer experience and brand
reputation. Today to convince an aware Indian client, its necessary to elaborate the possible
cost-per-lead, each digital spend, return on each spend, and key performance indicators.
• Viral Video Marketing

With up to 250 million Internet users in India, it’s easy to go viral with something awesome.
Brands and businesses will be planning to use viral video marketing with the help of social
media networks more effectively to reach large audience in India. Essentially, with video
marketing in India it has become easier to build brand identity, improve brand storytelling
and engage audience, and enhance brand loyalty. Viral video marketing will increasingly
find many takers in India, given many advantages. At present, big brands, Indian cinema,
Indian music, government of India, political parties, Indian educational organizations, and
many others are successfully using video to entertain, educate and emotionalize audience in
India.
• Responsive/Mobile Marketing
Firstly, the easy availability of smartphones, tablets, phablets, and touchpads that is
redefining mobility in India. Secondly, there is large audience (approx. 130 million users
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according to IAMAI and IMRB) in India accessing Internet through mobile devices. Thirdly,
Gartner says India to have 72 per cent mobile penetration by the year 2016. Fourthly, India’s
mobile video consumption has doubled and more than 65 per cent of Indians are sharing
videos on mobile. Lastly, according to Facebook, there are 62 million Indians accessing
Facebook through mobile. Mobile is the way forward in India, to reach Indians across India.
In 2014, mobile applications, mobile advertising, mobile video marketing, and marketing on
popular mobile networking apps such as WeChat, Line, WhatsApp, Vine, Snapchat,
Instagram and others will increase exponentially. Return on mobile marketing investment
will remain an issue that may disturb marketers. However, with m-commerce, mobile
payments, and innovations by Google India, Amazon and many other market leaders, some
breakthrough could be seen that would increase ROI on mobile marketing.
• Localization
In India, localization has become endemic. It will gain further ground with the help of
Google India search engine, Google Maps, online classifieds (e.g., Quicker), local online
search engines (e.g., Just Dial), local listing websites (e.g., Grotal), vertical search engines
(e.g., Zomato and Think Vidya) and others. Moreover, websites will increasingly localize as
well. In digital marketing industry, localization will increase among brands/businesses.
Many local joints, bars, clinics, super stores, shops, restaurants, clubs, pubs, companies,
organizations etc. will also invest in digital marketing to reach their audience online and
specifically on mobile. In localization – timing, limited budget, content strategy, mobile
marketing and advertising – will be great challenges that may disturb marketers.
• Personalization
However, there are privacy issues attached with it, but despite that, there are many takers
for personalization to improve customer experience and delight. Google acquired NEST labs
for US$ 3.2 billion. NEST labs manufacture smart home thermostat. Google uses NEST to
know more about its customer for better customer experience. The point is personalization
will not expand world, but also in India at much higher speed especially in e- commerce
industry. As all are trying to enhance customer experience to push sales, by providing them
more personalized services. For effective personalization, businesses have to deeply
understand their customer behavior and clickstream, and analytics will help them a lot to
understand this. Variety of analytics and testing will be used in further years such as
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heatmaps, deep analytics, customer journey, A/B testing etc. in order to know what their
customers’ wants, needs, and requirements in any particular time, season and moment.
• Online and Social Customer Relationship Management

Many Indian e-commerce websites, portals and others do not have effective online
customer- relationship management systems. Moreover, many customers are now
comfortable on chat, email, mobile chat and social media. Therefore, companies are
expanding its outreach to improve their CRM systems and enhance customer delight. Social
CRM would be strategic of all, as many Indians are comfortable in using social CRM on the
go.
• Conversion Rate Optimization and Testing

Recently, conversion rate optimization and testing in digital marketing industry of India is
picking up fast due to e-commerce boom in India. Conversion rate optimization and testing
will be strategic to improve digital strategy, enhance outcomes and sales, and perk up
customer delight. In India, many SEOs and digital marketers tend to ignore analytics, but in
future, analytics will regain its due importance in digital strategy. Moreover, deeper
analytics is bound to take place as Google has improved Google Analytics for deeper
understanding of customer online behavior and background. In addition, analytics will
largely drive CRO and testing in India. The CRO in mobile in India might also take place,
as we know it increasingly in India users are purchasing through mobile apps on their
smartphones and tablets. The biggest challenge for CRO and Testing will be the limited
budget and ignorance.
• Innovations in Online Payment System

There are lots of innovations in online payment system with new launches expected this year
and boost in Indian e-commerce industry. Just recently, Visa and MasterCard launched new
mobile payment services. With this technology, you can make payment through KitKat OS
and NFC powered Smartphone. It uses Host Card Emulation feature of Android to save card
details remotely in encrypted form and can be disabled remotely if phone is lost. In 2013,
Amazon launched ‘Pay Zippy’, which is an online payment system made for Indian e-
commerce websites. Similarly, Pay India also emerged as prominent contender, which is
increasingly becoming popular among small/niche vendors. PayPal will have to
optimize its system according to Indian situation and needs. For digital marketing industry,
EWCM/RR/VD/2020-23 65
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all these happenings will help them increase conversion rate of e- commerce websites and
improve customer delight. Because most of the time in India, the cart abandonments take
place because of the limitations in the online payment systems.
• Ever-Evolving UX and Web Designs

In the world of digital marketing, user experience and web design are ever evolving, where
interactivity, rich content and speed are essential components. There are some innovations
in user experience and web designing. Mostly, e-commerce websites in India will drive these
innovations, and more will jump into the bandwagon. In CRO and testing, user experience
and web designing are strategic, which directly enhance incredibly conversion rates with
simple and innovative changes and improvements. In India, news sites and e-commerce have
been experimenting with web and user experience designing.
• Humanization of Digital Marketing

Digital marketing will humanize further, where brands/businesses will understand the
importance of conversations and engagements. Moreover, Google contents that have higher
likes, shares, comments and other customer engagement signals. Companies will try to
connect and converse more through digital marketing with their target audience. And we can
expect, this will only increase customer retention, brand loyalty and word-of-mouth. Digital
strategies in future will be based on co-creation and collaboration concept, where
humanization of business, interactivity and engagement will help in delivering value.
• Multi-Channel/ Integrated Marketing

In India, multi-channel/integrated marketing will grow in popularity and effectiveness. As
many brands/businesses in India are increasingly embracing this concept to attract and
engage customers on all online and offline platforms. All businesses/brands in India, will
try to integrate their marketing efforts, especially their digital marketing with offline
marketing. In India, brands are realizing of importance integrated marketing
communications, in which conveying single message across all platforms helping them to
improve brand experience, brand loyalty, keep brand top-of-the- mind, and increase sales.
However, there are challenges such as mobile and disintegrated marketing teams, which are
plaguing the effectiveness of integrated marketing leading to no credible business value
generation. Nevertheless, given advantages of multi- channel marketing/integrated
marketing, large number of businesses in India will embrace it.
EWCM/RR/VD/2020-23 66
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CONCLUSION
In a recent research, digital marketing shows that in India businesses are getting serious
about digital marketing and investing in it heavily. In the current scenario, internet is pretty
small right now and the larger share of the target market is still available offline. However,
going forward, in the next two to three years, digital consumption and spends will go up in
India and, for this to happen, both quality and quantity of content needs to grow in India.
Once that is achieved, the overall industry spends on digital standing at around 15 to 20 per
cent in the next two to three years. Currently the digital medium has its constraints with the
number of people accessing and spending time on this. It has to become a large enough
medium in terms of consumption to compete with TV. Though people are buying online, a
large proportion of their time is still spent offline. Having said that, today, the target group
for most online companies is people living in the metros and slowly it is becoming important
for a brand to be built online also. And we can see that in other business segments as well.
EWCM/RR/VD/2020-23 67
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REFERENCES
• Brown, C (2007). The complete guide to Google advertising. United States: Atlantic
Publishing. P 27-30.
• Cannings, C. (2013). 7 Key benefits of blog marketing.
• Chaffey, D. & Ellis-Chadwick, F., 2012. Digital Marketing: Strategy,
Implementation and Practice. 5 ed. Harlow: Pearson Education Ltd.
• Katina, B. (2013). The Advantages of Webinar.
• Lusted, M (2011). Social Networking. Minnesota: ABDO Publishing.
• Suffusion, T. & Chetty, S., 2013. Building international entrepreneurial virtual
networks in cyberspace. Journal of World Business, Volume 48, pp. 260-270.
• SWG 2011, ‘’The Advantages of Organic SEO Over Pay-Per-Click Advertising
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TATA NANO

1.Reading the case

Tata Nano PRODUCT FAILURE HERE IS WHAT WENT WRONG:

2. The Report Format

II. Report main body

To analyze all your metrics about the product launch itself.

F. SOLUTIONS FOR THE QUESTIONS IN THE CASE STUDY

INTRODUCTION TO THE CASE:

REPORT MAIN BODY:

B. Statement of the problem:

Kellogg India receives technology inputs about how to customise products to

• Localised the entire raw and packing material requirement, saving

• Located its manufacturing plant at Taloja, near Mumbai in the state of

C. List of Critical Factors/Facts:

• Customer focus and retention is a powerful strategic

• To increase the profitability of the company

• To Survive in Highly Competitive market

• Varying concept in decision making units to sell the product

• Sustained brand-building through advertising and investment.

• communication and on-shelf differentiation

E. SWOC Analysis of Kellogg’s:

• Strong positioning the minds of customers

• Employee resource groups to drive business sustainability and

• Multinational presence with global manufacturing and marketing

• Strong commitments to nutrition

• Effective marketing campaigns

Lack of segregation in product portfolio

• Known majorly as a breakfast cereal.

• Majority of the products in the portfolio is sold in North America only

• R&D centres are limited to certain regions only

• Venture into emerging markets

• Expansion of product portfolio

• Additional business models like E-business

• Rapid market growth in ready-to-eat cereal category

• Changing customer perception about breakfast and processed foods

• Regulations by the government

F. Solution for the question in the case study:

1) In Comparison to Kellogg’s, Explain the Product Profile of the

2) What are the challenges the company may face in future?

Kellogg Company, India's market leader in organised breakfast cereals

BACKGROUND AND COMPANY PROFILE

Until the mid-1990s, Oreo largely focused on the US market – as reflected in

Report Main Body

• The introduction of smaller packs required adjustments in manufacturing

B. Statement of Problem/ Formulation of the problem:

• High cost of Raw materials

• Some of there product in American market has become poisoning

• Internal Competition is more in the company

• Cost of Advertisement is more

C. Assumption:Oreo had been an iconic product in US having been in the

market, competitive pricing and strong distribution were important

• Lifestyle changes due to health concerns

Solutions for the questions in the case study:

1) What are the multi-pronged approach adopted by Oreo in

The multi-pronged approach adopted by Oreo in China can be summarized as

• Kraft’s Chinese division asked its headquarters to change the ingredients

• Initially, the distribution was through grocery stores and hypermarkets.

2) What are the Strategy Used in India?

• As opposed to the Chinese, Indians love biscuits. India is world’s largest

• Oreo developed a strategy to take on the existing market leaders which

This case is a classic example of the dilemma which is faced by multinational

• “Urban sophisticate adults” will be interested in McDonald’s expensive burger