Marketing Management Quiz 1(Section A)

Time: 30 minutes; Max Marks=20

Instructions: Please read each question carefully and write your answers after each
question based on the concepts you have learnt in this course. Calculators NOT
allowed. It’s a closed books/notes/devises quiz.

Question 1: In a market, Brand A, B, C, and D have the following market shares. Which
brand has the highest price? [2 marks]

Brand Volume Market Share Value Market Share

A 25% 36%
B 41% 42%
C 24% 12%
D 10% 10%

Answer: _________Brand A___________

Question 2: In the Kolkata market, assume that there are 160 households but only 112
households have access to media such as newspapers, radio, TV or internet. A new
shampoo brand, “Snivel.” enters into an agreement with CESC (power supply company
serving Kolkata) whereby a sachet of Snivel shampoo is distributed with each CESC bill.
CESC has 48 households as customers, who all watch TV and read newspapers where
Snivel advertises regularly. Assume all CESC households use the shampoo sachet sent by
CESC. A market research agency found out recently that in the market, only 16
households are regular consumers. How much % trials and % adoption does Snivel
achieve in this market? [2+2=4 marks]

Answer: % Trial: 30% ; % Adoption: ______10%______________

Question 3: Sonik CD was a wholesale buying club for classical, jazz, and blues
enthusiasts. Annual membership was $40. At $10.95 per CD, Sonik’s prices were lower
than average retail prices. Subscribers paid $4.00 per package shipping and handling. On
average, subscribers purchased 19.9 CDs annually, mostly through Sonik’s website.
Annual subscriber retention rate was 90 percent. Annual fixed costs of fulfilment were
$400,000; shipments averaged 3.7 CDs per package. In the year just ended, marketing
expenses were $230,000; Sonik spent 90 percent on acquiring new subscribers and 5
percent on subscriber retention. Currently, Sonik had 40,000 customers; it gained 21,100
during the previous year. [4 marks]

a) What is the pricing strategy used? [ 2 marks]

Answer: _____Price Partitioning_______________

b) What is the customer acquisition cost per customer? [ 2 marks]

Answer: _______$9.81___________
Question 4: Vandana has set up a shampoo sachet manufacturing facility near IIM
Calcutta campus, which can make upto 100,000 sachets in a month. Her friend estimates
the fixed cost made by her to be Rs 10 lacs. Vandana wants to start making profit from
this business from 1st June 2022. The market launch is planned for 1st January 2022. Her
marketing strategy has enabled her to create a demand of 50,000 sachets per month for her
brand. The variable cost of manufacturing is estimated at 40% of the proposed selling
price. Her friend has advised her to have higher selling price for the sachet if she wants to
start making profit from 1st June 2022. Do you agree with her friend’s advice? What should
be the new price of the sachet at the time of the launch to enable Vandana to start making
profit from June 1, 2022? [3 marks]

Answer: New price of sachet is: Rs_______6.67_________

Question 5: A firm is selling 500 units at the price of Rs 40 per unit. If prices now go up
now to Rs 44 per unit, what would be the new sales? The price elasticity is given to be -2.
[2 marks]

Answer: ________400__________ units

Question 6: In a market, three brands of Chairs (A, B, and C) are competing for market
shares. Customers decide on which brand to buy based on following benefits required as
given in the Table 2. Sonika is a customer who follows a non-compensatory heuristic for
purchase (only comfort matters), while Rohit as a customer follows a compensatory
heuristic for purchase. Then which brands of chair do Sonika and Rohit likely to purchase
respectively? [3 marks]

Benefits Relative Supplier A Supplier B Supplier C

Required Importance Price = Rs 3,000 Price = Rs 3,000 Price = Rs 3,000

Rating Rating Rating

Weighting Total Total Total
(1–10) (1–10) (1–10)

Chair design 20 5 100 7 140 6 120

Comfort 30 6 180 8 240 4 120

Fabric quality 15 10 150 9 135 8 120

Fabric design 15 5 75 7 105 4 60

Ease of
20 8 160 10 200 8 160
purchase

Total 100 Total 664 Total 820 Total 580

Answer: Sonika: _________B______; Rohit: ________B________________

Question 7: Mother’s Recipe, a well-known brand of Pickles in the market has noticed an
interesting trend in their sales. The breakup of the sales of the Bengali Variant of pickles is
as following: 45% from Assam, 38% from West Bengal and 12% from Kerala. Similarly,
Rajasthani Sweet Lime variant’s 19% sales comes from Delhi, and 15% each from
Karnataka and Maharashtra. For Andhra variants, 41% sales comes from Karnataka, and
36% from Tamil Nadu. The Punjabi pickle variant sales comes 21% from Maharashtra,
17% from Delhi, and 14% from 14% from Karnataka. [ 2 marks]

Answer (Please restrict your answer to less than 20 words): One strong possible reason for
this may be due to:
1) Migration of consumers to different states
2) Similarities of cultures due to proximities of geographies

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