MKTG101- PAPERSET I

MKTG101- PAPERSET I
Principles of Marketing
Mapped Subjects: Principles of Marketing

[Max Marks: 70]

Note: Attempt Questions from all sections as directed.

Section A - Attempt any Two questions out of Four. Each question carries 7.50 marks. [15
Marks]

Question No: 1

Discuss the various functions of Packaging?

Question No: 2

Explain the objectives of advertising?

Question No: 3

What is the importance of pricing? Discuss in detail.

Question No: 4

What do you understand by distribution channel strategy? Discuss the various steps involved in
distribution channel strategy.

Section B - Compulsory Questions. Each question carries 7.50 marks. [15 Marks]

Paragraph No: 1
Haldiram's Group - Seeking the 'Right' Marketing Mix

Over a period spanning six and a half decades, the Haldiram's Group (Haldiram's) had emerged as
a household name for ready-to-eat snack foods in India. It had come a long way since its relatively
humble beginning in 1937 as a small-time sweet shop in Bikaner, in the Rajasthan state of India.
In 2001, the turnover of the Haldiram's was Rs 4 billion.

The group had presence not only in India but in several countries all over the world. Till the early
1990s, Haldiram's comprised of three units, one each in Kolkata, Nagpur and New Delhi. The
Agarwals family that owned Haldiram's were always conscious of the need to satisfy customers in
order to grow their business.

The company offered a wide variety of traditional Indian sweets and snacks at competitive prices
that appealed to people belonging to different age groups. Haldiram's had many 'firsts' to its credit.
It was the first company in India to brand 'namkeens3'. The group also pioneered new ways of
packaging namkeens.

Its packaging techniques increased the shelf life of namkeens from less than a week to more than
six months. It was also one of the first companies in India to open a restaurant in New Delhi
offering traditional Indian snack food items such as "panipuri," "chatpapri," and so on, which
catered to the needs of hygiene conscious non-resident Indians and other foreign customers. Since
the very beginning, the brand 'Haldiram's' had been renowned for its quality products.

The company employed the best available technology in all its manufacturing facilities in India.
Given the increasing popularity of Haldiram's products, the group planned to expand its operations.
However, some analysts felt that Haldiram's still had to overcome some hurdles. The company
faced tough competition not only from sweets and snack food vendors in the unorganized market
but also from domestic and international competitors like SM Foods, Bakeman's Industries Ltd,
Frito Lay India Ltd.(Frito Lay) and Britannia Industries Ltd. Moreover, the group had to overcome
internal problems as well. In the early 1990s, because of the conflict within the Agarwals family,
Haldiram's witnessed an informal split between its three units as they started operating separately
offering similar products and sharing the same brand name. In 1999, after a court verdict these
units started operating as three different companies with clearly defined territories. This split had
resulted in aggressive competition among themselves for a higher share of domestic and
international markets. Haldiram's offered a wide range of products to its customers. The product
range included namkeens, sweets, sharbats5, bakery items, dairy products, papad6 and ice-creams
(See Exhibit I for details of product range). However, namkeens remained the main focus area for
the group contributing close to 60% of its total revenues. By specializing in the manufacturing of
namkeens, the company seemed to have created a niche market.

Haldiram's sought to customize its products to suit the tastes and preferences of customers from
different parts of India. It launched products, which catered to the tastes of people belonging to
specific regions. For example, it launched 'Murukkus,' a South Indian snack, and 'Chennai Mixture'
for south Indian customers.
Similarly, Haldiram's launched 'Bhelpuri,' keeping in mind customers residing in western India.
The company offered certain products such as 'Nazarana,' 'Panchratan,' and 'Premium' only during
the festival season in gift packs. These measures helped Haldiram's compete effectively in a market
that was flooded with a variety of snack items in different shapes, sizes and flavors.
Pricing

Haldiram's offered its products at competitive prices in order to penetrate the huge unorganized
market of namkeens and sweets. The company's pricing strategy took into consideration the price
conscious nature of consumers in India.
Haldiram's launched namkeens in small packets of 30 grams, priced as low as Rs.5. The company
also launched namkeens in five different packs with prices varying according to their weights. The
prices also varied on the basis of the type of namkeens and the raw materials used to manufacture
it. The cost of metallized packing7 also had an impact on the price, especially in the case of snack
foods. The company revised the prices of its products upwards only when there was a steep
increase in the raw material costs or additional taxes were imposed.

Place

Haldiram's developed a strong distribution network to ensure the widest possible reach for its
products in India as well as overseas. From the manufacturing unit, the company's finished goods
were passed on to carrying and forwarding (C&F) agents. C&F agents passed on the products to
distributors, who shipped them to retail outlets. While the Delhi unit of Haldiram's had 25 C&F
agents and 700 distributors in India, the Nagpur unit had 25 C&F agents and 375 distributors.
Promotion

Haldiram's product promotion had been low key until competition intensified in the snack foods
market. The company tied with 'Profile Advertising'9 for promoting its products. Consequently,
attractive posters, brochures and mailers were designed to enhance the visibility of the
Haldiram's brand

Positioning

The above initiatives helped Haldiram's to uniquely position its brand. Haldiram's also gained an
edge over its competitors by minimizing promotion costs. Appreciating the company's efforts at
building brand, an analyst said, "Haldiram once was just another sweet maker but it has moved
into trained brands first by improving the product quality and packaging. Through its clever
products and brilliant distribution it had moved into the star category of brands

Question No: 1

Provide the detailed summary of the Paragraph?

Question No: 2

Keeping the current scenario in mind re-evaluate the STP strategy of the company.

Section C - Compulsory Questions. Each question carries 2.00 marks. [40 Marks]

Question No: 1

What can be marketed?

Option: 1

Experiences

Option: 2

Events
Option: 3

Information
Option: 4

All of the above

Question No: 2

___________is the digital space allowing the interaction and transaction between the buyers and
sellers.

Option: 1

Market space

Option: 2

Marketplace
Option: 3

Meta- Markets
Option: 4

None of the above

Question No: 3

Product pricing may depend heavily on the productivity of a ____________ facility.

Option: 1

Manufacturing

Option: 2

Assembling
Option: 3

Storing
Option: 4

All of the above

Question No: 4

__________ suggests that consumers will favor the products offering the best quality, good
performance, and innovative features.

Option: 1

The product concept

Option: 2

The production concept

Option: 3

The selling concept

Option: 4

The marketing concept

4
Question No: 5

____________ is a marketing strategy whose objective is to establish and maintain a profitable,

long-term relationship with a customer, which goes beyond the initial contact.

Option: 1

Relationship Marketing

Option: 2

Holistic Marketing

Option: 3

Content Marketing

Option: 4

Online Marketing

Question No: 6

____________ involves synchronizing the marketing efforts for designing and implementing an
overall unified marketing strategy.

Option: 1

Internal Marketing

Option: 2

Integrated Marketing

Option: 3

Socially Responsible Marketing

Option: 4

None of the above

Question No: 7

_____________ strategy consists of introducing a product with low price and low-level
promotion.
Option: 1

Slow Penetration

Option: 2

Rapid Skimming Strategy

Option: 3

Rapid Penetration

Option: 4

Slow Skimming Strategy

Question No: 8

___________ consists of introducing new high-priced products and high promotional costs.

Option: 1

Rapid Skimming Strategy

Option: 2

Rapid Penetration

Option: 3

Slow Skimming Strategy

Option: 4

Slow Penetration
Question No: 9

_____________ refers to the size, distribution, and growth rate of groups of people with different
characteristics.

Option: 1

The psychographic environment

Option: 2

The demographic environment

Option: 3

The geographic environment

Option: 4

None of the above

Question No: 10

____________ system is a set of procedures and data sources used by marketing managers to
shift information from the environment that they can use in their decision making.

Option: 1

A marketing intelligence

Option: 2

A marketing
Option: 3

Marketing research

Option: 4

Internal reporting
Question No: 11

___________ deals with numbers and answers the questions as to how many, how much, or how
often.

Option: 1

Quantitative Research

Option: 2

Qualitative Research

Option: 3

Exploratory Research
Option: 4

Descriptive Research

Question No: 12

____________ is the study of individuals, groups, or organizations and the processes they use to
select, secure, and dispose of products, services, experiences, or ideas to satisfy consumer needs
and the society.
Option: 1

Consumer background
Option: 2

Consumer behavior

Option: 3

Consumer Attitude
Option: 4

Consumer personality
Question No: 13

____________sought to explain Why people are driven by needs at particular times.

Option: 1

Abraham Maslow

Option: 2

Freud’s theory

Option: 3

Herzberg’s theory

Option: 4

None of the above

Question No: 14

Complex Buying Behavior applies to the___________________.

Option: 1

Low -Involvement products

Option: 2

High-involvement products

Option: 3

Both above

Option: 4

None of the above

Question No: 15

Products include more than just tangible objects, such as cars, computers, or cell phones. Broadly
defined, “products” also include _________________

Option: 1

Services

Option: 2

Ideas

Option: 3

Events

Option: 4

All the above

Question No: 16

_________________are simply objects that are manufactured, stored, transported, advertised, and then
sold.

.
Option: 1

FMCG

Option: 2

Intangible products

Option: 3

Products

Option: 4

Services
Question No: 17

________ are industrial products that aid in the buyer's production or operations, including
installations and accessory equipment.

Option: 1

Parts

Option: 2

Specialty items

Option: 3

Capital items

Option: 4

Supplies

Question No: 18

________are less frequently purchased consumer products and services that customers compare
carefully on suitability, quality, price, and style.

Option: 1

Shopping products

Option: 2

Unsought products

Option: 3

Speciality products

Option: 4

Convenience products
Question No: 19

________ is a new-product development approach in which one company department works to

complete its stage of the process before passing the new product along to the next department
and stage.

Option: 1

Micromarketing

Option: 2

Sequential product development

Option: 3

Product life-cycle analysis

Option: 4

Simultaneous product development

Question No: 20

________ involves designing and producing the container or wrapper for a product.

Option: 1

Packaging

Option: 2

Labeling

Option: 3

Branding

Option: 4

Service