Assignment II

Strategic Marketing

Submitted to: Submitted by:

Mr. Sohan Babu Khatri Sachi Poudel, EMBA

Faculty – Strategic Marketing

Question 1:

1. Consider a business model/ idea (your choice) and create a Business Model Canvas (BMC) for the same. Also create a value
proposition canvas relevant to the most relevant target consumer segment.

Business Model Canvas: MN (Made in Nepal: A physical and online departmental store that sells only goods made in Nepal)

Key Partners: Key Activities: Value Propositions: Customer Relationships: Customer Segments:

Suppliers: Suppliers Procurement: The store 1. We offer a wide Personal assistance: The Patriotic people and
include the businesses or will need to work with selection of high-quality store will offer personal Youths:
individuals that provide suppliers and manufacturers “Made in Nepal” products shopping services, where The store will specifically
the products such as to acquire the products made customers can work with a target people who are a
at reasonable prices,
edibles, textiles and other in Nepal we will sell. sales associate to find patriot and love Nepal.
along with exceptional
cultural and religious customer service and products that meet their They would promote
goods made in Nepal that Merchandising: The store needs. internal production and
will need to decide which convenient shopping
the departmental store help support enhance the
products to carry and how to options.
sells. Self-service: The store will National economy. The
display them in the store to allow customers to browse store will also collect
attract customers as per the 2. Our store is designed to and shop on their own, with special kinds of foods or
Manufacturers: The sales report and customer be a one-stop destination employees available to textiles from all over
departmental store will feedbacks. for all of your shopping answer questions and Nepal for easy access
also sell products that it needs for the goods provide assistance as through online or offline.
manufactures itself Marketing and advertising: manufactured in Nepal, needed.
mainly edibles (pickles, The store will need to be whether you're looking for Families:
selrotis, etc. that are promoted about its products grocery, edibles, clothing, Automated services: The The store will also target
especially used regularly to attract customers. home goods, electronics, store will highly use families with children,
and in festivals) the or something else. technology to enable offering products such as
manufacturers of those Sales: customers to place orders or clothing, toys, and home
products are also the key The store will also have to 3. We are committed to track their purchases online goods that appeal to this
partners. process transactions and or through a mobile app. demographic.
providing our customers
assist customers with their
purchases. with a positive shopping
Retailers: In the long run Customer service: The experience, and we strive Communities: The store Fashion-conscious
I plan to extend the chain store will need to address to make every visit to our will engage with customers consumers:
of the departmental store. customer inquiries and store a pleasure. through social media or The store will target
The other stores in the complaints and resolve any other online platforms, and consumers who are
chain could be considered issues that arise. 4. We promote and it will host in-store events interested in staying up-
key partners. motivate Nepalese or workshops to build a to-date with the latest
Inventory management: entrepreneurs and goods. sense of community among fashion trends, offering a
The store will need to track its customers. wide selection of clothing
Service providers: The its inventory and restock as and accessories by having
5. Easy purchase, fast
departmental store will needed. Co-creation: The store will tie-ups with growing
work with a variety of delivery and exchange invite customers to provide fashion designers and
service providers, such as Store operations: facilities as well as easy feedback or ideas for new fashion designer
the delivery companies, The store will need to payment facilities products or services, or it companies.
the security guard manage the daily operations provided for customer’s might as well allow them to
companies, the human of the business, including comfort. customize products to meet Home decorators: The
resource outsourcing managing employees, their specific needs (if store will target
companies etc. maintaining the store's possible). consumers who are
physical space, and handling interested in home decor
administrative tasks. and furnishings, offering
Technology partners: a range of products such
The departmental store Financial management: as furniture, bedding, and
will have to rely on The store will need to home accessories.
technology companies to manage its finances,
provide software and including tracking revenue
systems for inventory and expenses, forecasting
management, point-of- sales, and developing
sale, and other functions. budgets.
 Key Resource:
Physical resources: The
Financial institutions:
store's physical space,
Banks and other financial
fixtures, and equipment are
institutions will be key
all important resources.
partners for my
departmental store,
Inventory: The products
particularly as the store
that the store sells (Made in
will offer financing
Nepal) are a key resource.
options to customers.
Human resources: The
store's employees are a key
resource, as they are
responsible for carrying out
the various activities of the
business.
Financial resources: The
store will need financial
resources to fund its
operations, such as cash on
hand, credit lines, and
investment capital.
Technology: The store will
use a variety of technology
resources, such as point-of-
sale systems, inventory
management software, and
marketing and advertising
tools.
Partnerships and
relationships: The store
should have relationships
Channels:
In-store marketing: By
using in-store signage,
displays, and promotions, a
department store can reach
customers who are
physically shopping in the
store.
Customer loyalty program:
Offering a customer loyalty
program with exclusive
discounts and rewards, a
department store can
encourage customers to
shop more frequently and
engage with the brand.
Social media: By
maintaining a strong
presence on social media
platforms such as
Facebook, Instagram, and
Twitter, a department store
can connect with customers
and share updates about
new products, sales, and
events.
Online advertising:
By using targeted online
ads on platforms such as
Google, Facebook, and
Instagram, a department
 with suppliers,
manufacturers, distributors,
and other businesses that are
important resources.
Intellectual property: The
store will have developed
and patented products and
proprietary processes, these
will be considered key
resources.
Cost structure:
Rent or lease costs: The cost of renting or leasing a physical
location for the store.
Salaries and wages: The cost of paying employees, including
salaries, wages, benefits, and taxes.
Inventory: The cost of purchasing and storing products to be sold
in the store.
store can reach customers
who are actively searching
for products or services in
their area.
Email marketing: Sending
targeted emails and
messages to customers with
personalized offers and
discounts, a department
store can effectively reach a
large audience.
Direct mail: By sending
physical mailers to
customers with coupons
and special offers, a
department store can reach
customers who may not be
as active on social media or
email.
Revenue Streams:
Retail sales:
The main source of revenue for my department store will be the sale of
products to customers. This includes both physical and online sales.
Rent from tenants:
Our department store will generate revenue by renting out space to other
businesses or vendors (food court, ice cream parlor, plant shops etc)
Marketing and advertising: The cost of promoting the store and
its products, including advertising and marketing campaigns.
Utilities: The cost of electricity, water, gas, and other utilities
required to operate the store.
Insurance: The cost of insurance coverage for the store, including
liability, property, and business interruption insurance.
Maintenance and repairs: The cost of maintaining and repairing
the store, including cleaning, upkeep, and necessary repairs.
Taxes: The cost of taxes such as sales tax and property tax.
Advertising: My department store will also generate revenue by selling
advertising space to other businesses (Made in Nepal).
Loyalty program fees: My department store will have a customer loyalty
program, it will charge a certain fee to participate or offer paid membership
tiers with additional benefits.
Rentals: My department store will also generate revenue by renting out
equipment or event space for events or parties.
Parking: Parking will be free for our customers but for people other than
customers, parking fee will be charged.
Value Proposition Canvas:

Value Proposition: Customer Segment:

Gain Creator:
1.Made in Nepal products
Gains:
2.Delivery all over Nepal
1. Support production in Nepal
3.Both online and store purchase
2. Help to increase living standard of small scale entrepreneurs
4. Authentic Products
3. Boost’s Nepalese Economy
5. Express delivery system
6. Proper customer care
Customer Job:
1. Buy local goods
Product and Service:
2. Support local business
1. Edibles
3. Empower small scale entrepreneurs
2. Textiles (Cultural and Modern)
3. Groceries Pain:
4. Herbal plants 1. On time delivery
5. Nepalese tea and coffee 2. Availability of other goods at lower prices
6. Dairy products 3. Offers and schemes
4. Variety
Pain Reliever:
5. Quality assurance
1. Supporting local businesses and entrepreneurs
2. Boost Nepalese economy (GDP)
3. Internal consumption rather than exported goods
4. Easy and convenient shopping
Question:
2. Defining ‘value’ as “the perceived worth of the set of benefits received by a customer in
exchange for the total cost of an offering, taking into consideration available competitive
offerings and prices” embodies seven fundamental lessons on customer value:

a. Value Is Customer-Defined
b. Value Is Opaque
c. Value Is Contextual
d. Value Is Multidimensional
e. Value Is a Trade-Off
f. Value Is Relative
g. Value Is a Mindset

The value of a product or service is often evaluated by the benefits it provides to the customer and
the price the customer is willing to pay to gain those benefits. Other aspects that can affect a
product or service's perceived value include its quality, availability, the image of the company or
individual offering it, and its perceived value in comparison to other similar products or services
on the market. A product or service that offers the customer a high level of value will typically be
in high demand and cost more.

a. Value Is Customer-Defined

The value of a product or service is often defined by the customer and can vary from person to
person. Different customers will place different values on the same product or service based on
their own needs, preferences, and budget. For example, one customer might be willing to pay a
high price for a luxury car because they value the prestige and performance it offers, while another
customer might be more focused on finding the most affordable transportation option and might
place less value on a luxury car. It's important for businesses to understand their target market and
the values of their customers in order to effectively market and price their products and services.
For example, a company that sells high-end coffee makers. Some customers might be willing to
pay a premium price for the coffee maker because they value the convenience, quality, and
durability of the product. They might see the coffee maker as a long-term investment that will save
them money on coffee shop visits and provide them with a consistently great cup of coffee at home.
Other customers, however, might place less value on a high-end coffee maker and might be more
interested in a budget-friendly option that still meets their basic needs. They might see the premium
coffee maker as too expensive and not worth the additional cost. In this scenario, the value of the
coffee maker is customer defined based on the individual customer's priorities and budget.
b. Value Is Opaque

In some cases, the value of a product or service can be difficult to determine or "opaque," meaning
that it is not clearly visible or easily understood. This can occur when the product or service is
complex or difficult to evaluate, or when there is limited information available about the product
or service. In such cases, it can be challenging for customers to accurately assess the value of the
product or service and make informed purchasing decisions.

One way that businesses can make the value of their products or services more transparent is by
providing clear and detailed information about the features and benefits of the product or service,
as well as any warranties or guarantees offered. This can help customers understand the value of
the product or service and feel more confident in their purchasing decision.

Let’s imagine a company that sells a specialized software program for analyzing financial data.
The software is highly advanced and has a wide range of features that make it useful for financial
professionals. However, the software is also complex and requires a certain level of expertise to
use effectively. As a result, it may be difficult for potential customers to understand the full value
of the software and how it compares to other financial analysis tools on the market. In this case,
the value of the software may be opaque to some customers, making it harder for them to determine
whether or not the product is worth the price. To make the value of the software more transparent,
the company might provide detailed information about its features, offer demos or free trials, or
provide customer testimonials to help potential customers understand the value of the product.

c. Value is contextual :

The value of a product or service can also be contextual, meaning that it can change depending on
the specific circumstances or context in which it is being evaluated. For example, the value of a
product or service might be different for a customer who is in a hurry and needs a quick solution
compared to a customer who has more time to research and compare options. Similarly, the value
of a product or service might be different for a customer who is looking for a high-end, premium
product compared to a customer who is looking for a budget-friendly option.

It's important for businesses to consider the context in which their products or services are being
evaluated and to present the value of their products or services in a way that is relevant and
meaningful to the customer. This may involve highlighting different features or benefits depending
on the customer's needs or adjusting the price or packaging of the product or service to make it
more appealing in a particular context.
For example a company that sells a subscription-based streaming service for movies and TV
shows. For some customers, the value of the service might be high because they are able to access
a large library of content for a relatively low monthly price and can watch it on a variety of devices.
For other customers, however, the value of the service might be lower if they are only interested
in a few specific shows or movies that are not available on the service. In this case, the value of
the service is contextual, as it depends on the specific interests and needs of the customer. To
increase the value of the service for these customers, the company might consider offering a à la
carte option or adding more content that is of interest to them.

d. Value is Multi-dimensional:

The value of a product or service is often multi-dimensional, meaning that it is not based on a
single factor but rather is a combination of several different factors. These factors can include the
functional benefits of the product or service, such as its performance, quality, or reliability, as well
as the emotional benefits it provides, such as pleasure, satisfaction, or convenience. The value of
a product or service can also be influenced by intangible factors such as the reputation of the
company or brand, the level of customer service provided, and the overall customer experience.

In order to effectively communicate the value of a product or service to customers, it's important
for businesses to consider all of the dimensions of value that are relevant to their target market and
to present this information in a way that is meaningful and compelling to the customer.

Example: If a company that sells a high-end home security system. The functional benefits of the
system might include features such as advanced sensors, 24/7 monitoring, and remote control
through a smartphone app. The emotional benefits of the system might include a sense of safety
and peace of mind for the homeowner. The value of the system might also be influenced by
intangible factors such as the reputation of the company, the level of customer service provided,
and the overall customer experience. For example, a customer might place a higher value on the
system if they feel confident in the company's ability to respond to emergencies and if they have
a positive experience with the customer service team. In this case, the value of the home security
system is multi-dimensional, as it is based on a combination of functional, emotional, and
intangible factors.

e. Value is a trade-off:

Value is often a trade-off, meaning that customers must weigh the benefits of a product or service
against its cost. In other words, customers must consider what they are getting for the price they
are paying and decide whether or not the product or service is worth it to them. For example, a
customer might be willing to pay a higher price for a product or service that provides a lot of value
in terms of features, quality, or convenience, but might not be willing to pay as much for a product
or service that provides only minimal value.

In order to maximize the value of a product or service, businesses should aim to offer a good
balance of benefits and price. This might involve finding ways to lower the cost of the product or
service while maintaining or improving its value, or it might involve finding ways to increase the
value of the product or service without significantly increasing the price. Ultimately, the goal is to
offer the best possible value to the customer at the best possible price.

Let us imagine a customer who is considering purchasing a new car. He has a budget of Nrs.
40,00,000 and is looking for a reliable, fuel-efficient vehicle that meets his basic transportation
needs. He has two options: a used car that is well-maintained and has low mileage, or a new car
that is more fuel-efficient and has a longer warranty but is more expensive. In this case, the
customer must weigh the benefits of each option against the cost and decide which one offers the
best value. The used car might be a better value if it is in good condition and offers similar fuel
efficiency to the new car, while the new car might be a better value if it is significantly more fuel-
efficient and the customer is willing to pay a higher price for the additional benefits it offers.

f. Value is relative:

The value of a product or service is often relative, meaning that it is evaluated in comparison to
other similar products or services. This can be influenced by a variety of factors, such as the
quality, features, and price of the product or service, as well as the perceived value of the product
or service compared to its competitors. A customer might place a higher value on a particular
product or service if they feel that it is significantly better than other options on the market in terms
of features or performance. On the other hand, if there are several similar products or services
available, the customer might place a lower value on the product or service if they feel that it is
not significantly different from the other options. It is important for businesses to be aware of how
their products or services compare to those of their competitors in order to effectively communicate
the value of their offerings to customers.

Let us consider a customer who is in the market for a new smartphone. They are considering two
options: a high-end smartphone with a lot of features and a premium price, and a budget-friendly
smartphone with fewer features but a lower price. The customer might place a higher value on the
high-end smartphone if they feel that it is significantly better than the budget-friendly smartphone
in terms of features, performance, or durability. On the other hand, if the budget-friendly
smartphone offers similar features and performance to the high-end smartphone but at a
significantly lower price, the customer might place a higher value on the budget-friendly
smartphone due to its lower cost. In this case, the value of the smartphones is relative, as it depends
on how the customer perceives the value of each option compared to the other.
g. Value is a mindset:

Value is also often a mindset, meaning that it is influenced by an individual's attitudes, beliefs, and
perceptions. Different people can have different perspectives on the value of a product or service,
and these perspectives can be shaped by a variety of factors such as their personal experiences,
their cultural background, and their values and priorities.

For example, one person might place a high value on a particular product or service because they
feel that it is of high quality and meets their needs well, while another person might place a lower
value on the same product or service because they feel that it is overpriced or not as effective as
other options. In this case, the value of the product or service is a mindset, as it is influenced by
the individual's perception of its value. It is important for businesses to understand the mindset of
their target customers and to present the value of their products or services in a way that is relevant
and meaningful to those customers.
For example a customer who is considering purchasing a luxury watch. For one customer, the
value of the watch might be high because they place a lot of value on luxury brands and see the
watch as a status symbol. For another customer, the value of the watch might be lower because
they place a higher value on practicality and function and do not see the value in paying a premium
price for a luxury brand. In this case, the value of the watch is a mindset, as it is influenced by the
individual customer's attitudes, beliefs, and priorities. To increase the value of the watch for the
first customer, the company might emphasize the watch's exclusive branding and craftsmanship,
while for the second customer, the company might focus on the watch's functional features and
durability.

Conclusion: Value is a complex concept that can be influenced by a variety of factors,

including the benefits a product or service provides, the price of the product or service, the
quality of the product or service, and the customer's priorities and preferences. It is often
customer-defined, meaning that different customers will place different values on the same
product or service based on their own needs and circumstances.

Value can be multi-dimensional, taking into account both functional and emotional benefits, as
well as intangible factors such as reputation and customer experience. It can also be contextual,
changing based on the specific circumstances or context in which it is being evaluated. Value is
often a trade-off, requiring customers to weigh the benefits of a product or service against its
cost, and it is often relative, evaluated in comparison to other similar products or services.
Finally, value is a mindset, influenced by an individual's attitudes, beliefs, and perceptions.

In conclusion, value is a multifaceted concept that is influenced by a wide range of factors, and it
is important for businesses to understand the value of their products or services from the
perspective of their customers in order to effectively market and price their offerings.
Question:
3. You have been recently appointed as a marketing strategist of Nepal Motors Pvt. Ltd., which
is an exclusive distributor of an entry to mid-segment car brand. Explain how you will identify
and analyze the competitors for your business? Use all possible analytical tools and models to
evaluate your competitors. Also explain in brief why competitors’ analysis is vital to
marketing strategy formulation?

There are several steps I can take as a marketing strategist of Nepal Motors Pvt. Ltd. to
identify and analyze competitors for a mid-segment car brand:
a. Identify the target market for mid-segment car brand:
First of all we need to determine who are our potential customers are and what they are
looking for in a car. This will help us understand which brands are likely to be our main
competitors.

b. Research the competition for mid segment car brand:

After identification of the target market we then need to look at the car brands that are
already established in the mid-segment market and analyze their products, pricing,
marketing strategies, and distribution channels.

c. Determine our unique selling proposition (USP):

Identification of target market and research about our competitions is followed by
determining the USP of the cars we are offering. Determining the USPs is what makes our
brand unique and how it differs from our competitors. This will help us differentiate our
brand and target a specific niche within the market.

d. Analyze the strengths and weaknesses of our competitors:

We need to look at the factors that give our competitors an advantage or disadvantage in
the market, such as their reputation, customer loyalty, distribution channels, and pricing
strategies.

e. Monitor our competitors regularly:

Keeping an eye on what our competitors are doing and how they are performing in the
market will aware us about the recent trends, their strategies and many more. This will help
us stay up-to-date on their activities and adjust your own strategies accordingly.
There are several analytical tools and models that I can use to evaluate competitors as a
market strategist of Nepal Motors Pvt. Ltd. Some options include:

Porter's Five Forces: This model helps us to analyze the competitive forces in an industry
and understand the factors that shape the intensity of competition.

SWOT analysis: This tool helps to analyze the strengths, weaknesses, opportunities, and
threats of a business or brand.

Competitive Benchmarking: This involves comparing our own business or brand to your
competitors in terms of key performance indicators (KPIs) such as market share, customer
satisfaction, and financial performance.
Market Segmentation: This involves dividing the market into smaller groups based on shared
characteristics, such as demographics or customer needs. This can help us identify specific
segments where your brand is particularly competitive.

Customer Personas: Developing customer personas – detailed profiles of our ideal customers
– can help us understand how our competitors are positioning themselves in the market and
identify opportunities for differentiation.
Marketing Mix Analysis: This involves analyzing the four "Ps" of marketing (product, price,
place, promotion) for our own brand and our competitors. This can help us understand how
our competitors are targeting customers and where we can differentiate our own brand.

Competitor analysis is vital in marketing strategy formulation for several reasons:

It helps us understand the competitive landscape: By analyzing our competitors, we can
gain a better understanding of the market and the other brands that are operating within it. This
knowledge can help us make informed decisions about how to position our own brand.

It helps us identify opportunities and threats: Competitor analysis can help us identify
opportunities to differentiate our brand and target specific niches within the market, as well as
potential threats that could impact our business.
It helps us develop a unique selling proposition (USP): By understanding our competitors'
strengths and weaknesses, we can identify areas where our brand can differentiate itself and
develop a unique selling proposition that sets us apart from the competition.

It helps us assess our own strengths and weaknesses: Competitor analysis can also help us
identify our own strengths and weaknesses and understand how they compare to those of our
competitors. This can help us identify areas where we need to improve and develop a more
effective marketing strategy.
 Conclusion:
Overall, competitor analysis is an essential part of the marketing strategy formulation process
because it helps us understand the market and the other brands operating within it, identify
opportunities and threats, using marketing mix and develop a unique selling proposition that
sets our brand apart from the competition.

As a market strategist, it is very essential that I, use the relevant analytical tools and models as
mentioned above, research and identify the market, have a SWOT analysis of the company as
well as monitor the activities of competitors and learn from them and always stay ahead of the
competitors in automobile market.

Question:
4. The positioning task addresses three fundamental questions: what meanings can I (company)
claim that are (1) different from those of competitors, (2) relevant and desirable to target
consumers in that they resonate in their lives and in the broader culture, and (3) credible in
that that the company can legitimately pull off the positioning platform with the support of
business models and collaborators. Give your discourse on these three elements of
positioning which amplifies the logic behind positioning decisions and highlight the
complications faced in executing the Positioning = Differentiation + Relevance + Credibility
formula for the brand.

Product positioning should be based on the target market's needs, wants, and values. To
determine the most effective positioning for a product, it can be helpful to conduct market
research to understand the target market's preferences and behaviors. This can include things
like customer surveys, focus groups, and competitive analysis. By understanding the needs of
the target market, a company can position its product in a way that resonates with those
needs and sets it apart from its competitors.

Product differentiation:

Product differentiation is a marketing strategy that involves making a product or service

stand out from similar offerings in the market. The goal of product differentiation is to make
a product or service unique in some way that is meaningful to the customer, so that the
company can charge a premium price or gain a competitive advantage. There are many ways
to differentiate a product or service, including through its features, design, quality, branding,
customer service, and more. It is important for companies to carefully consider how they will
differentiate their products in order to stand out in a crowded market and attract and retain
customers.

Product relevance:
Product relevance refers to how closely a product or service meets the needs and wants of a
particular target market or customer. A product that is highly relevant is one that addresses a
specific problem or fulfills a particular need in a way that is valuable to the customer. A
product that is not relevant, on the other hand, may not be of interest to the customer or may
not effectively meet their needs.

Product relevance can be influenced by a number of factors, such as the customer's

demographics, lifestyle, location, and budget. Companies should conduct market research to
understand the needs and preferences of their target customers and ensure that their products
are relevant to them. In order to maintain product relevance over time, companies may need
to continuously update and improve their products to meet changing customer needs and
preferences.

Product credibility:
Product credibility refers to the degree to which a product or service is perceived as being
reliable, trustworthy, and worthy of belief by the customer. A product with high credibility is
one that the customer believes will perform as advertised and deliver the promised benefits.

There are several ways that companies can establish credibility for their products. One way is
through the use of third-party endorsements or testimonials, which can help to build trust with
potential customers. Companies can also establish credibility through the use of branding and
marketing efforts that highlight the product's features, benefits, and performance.

Maintaining product credibility is important for companies, as it can help to build customer
trust and loyalty, which can lead to repeat business and positive word-of-mouth marketing. On
the other hand, a product with low credibility may struggle to attract and retain customers, as
customers may not believe that the product will perform as advertised or meet their needs.

Conclusion:
Together, product differentiation, relevance, and credibility are important factors in a brand's
overall positioning in the market. By differentiating its products or services, offering
products or services that are relevant to its target market, and establishing credibility with
 consumers, a brand can differentiate itself from its competitors and establish a strong position
in the market.

Question:
5. What are the lessons we can learn from this case? Relate the case and its issues with the
theories and concepts studied in the subject.

The Coca-Cola Company took arguably the biggest risk in consumer goods history,
announcing that it was changing the formula for the world's most popular soft drink, and
spawning consumer angst the likes of which no business has ever seen. New Coke was a
reformulation of the Coca-Cola company’s flagship soft drink that was released in 1985. The
decision to release New Coke was motivated by the decline in market share that Coca-Cola
had experienced in the 1970s and 1980s, as well as the success of PepsiCo's marketing
campaigns. However, the introduction of New Coke was met with widespread consumer
backlash and the product was eventually discontinued.

The lessons that can be learnt from the case are:

Don't mess with a classic: Coca-Cola was an iconic and beloved brand, and many
people were attached to the original formula of the drink. By changing the formula,
Coca-Cola risked alienating its loyal customers.
Conduct thorough market research: It is important to understand the needs and
preferences of your target market before launching a new product. In the case of New
Coke, the company did not anticipate the strong negative reaction from consumers.
Be prepared for negative feedback: Any major change or new product launch is
likely to receive some negative feedback. It is important to be prepared to handle
negative public opinion and to have a plan in place to address any concerns or issues
that may arise.
Don't be afraid to admit mistakes: Coca-Cola ultimately admitted that the launch of
New Coke was a mistake and quickly restored the original formula. It is important to
be able to admit when something is not working and to be willing to make necessary
changes.
Don't underestimate the emotional attachment that consumers have to a brand:
Many people had a strong emotional connection to the original formula of Coca-Cola,
and the company did not adequately anticipate the level of outrage that would result
from changing it.
 Don't ignore consumer feedback: The Coca-Cola company conducted extensive
market research before introducing New Coke, but it failed to adequately listen to the
concerns and preferences of its customers.
Be cautious when making major changes to a successful product: The original
formula of Coca-Cola had been successful for over a century, and many people saw the
introduction of New Coke as a betrayal of that success.
Have a plan in place to deal with unexpected outcomes: The Coca-Cola company
was caught off guard by the negative response to New Coke and did not have a plan in
place to address the backlash. As a result, the company lost market share and
experienced significant financial losses.

Conclusion:
As studied in the subject, a company should be focused on creating value for the customers,
market segmentation, making strategies, market research and competitive intelligence, value
chain, pricing, positioning, tactics and many more.
Also, there are four diagnostic components to a competitor analysis: future goals, current
strategy, assumptions, and capabilities. After the competitor's future goals, assumptions,
current strategies, and capabilities are analyzed, a competitor response profile is developed.
This profile, designed to indicate how a competitor is likely to respond in its competitive
environment, is based on the answers to four questions:
1. Is the competitor satisfied with its current position?
2. What likely moves or strategy shifts will the competitor make?
3. Where is the competitor vulnerable?
4. What will provoke the greatest and most effective retaliation by the competitor? (Michael
E. Porter).