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Important points:
Assumptions:
Solution/s:
b. Product Image:
M/s Challenger can create a unique position for their products by highlighting
the image of the bats. As the bats come in a vide variety of price range, they
are suitable for all the types of consumers.
M/s Challenger should use the pictures of the cricketers who are widely popular
and generally in form. This will reduce the number of cricketers’ pictures and
hence will lead to less choice and eventually less inventory.
2. Demographic variables
a. age
b. gender Male and Female
c. sexual orientation
d. family size
e. family life cycle
f. Education Primary, High School, Secondary, College, Universities.
g. income
h. occupation
i. education
j. socioeconomic status
k. religion
l. nationality/race
m. language
3. Psychographic variables
a. personality
b. life style
c. value
d. attitude
e. Behavioural variables
f. benefit sought
g. product usage rate
h. brand loyalty
i. product end use
j. readiness-to-buy stage
k. decision making unit
The company can therefore segment their market on the basis of:
i. Country
ii. Age
iii. Sex
iv. Income
v. Nationality/Race
vi. Product usage rate
Implementation:
1. Product Differentiation:
The product differentiation on the basis of features, quality and benefits can
be implemented by highlighting these advantages in the marketing,
promotional and advertising strategies.
Product image can be built by using the pictures of popular cricket stars who
are generally playing good. Ex-cricketers’ photographs can also be used.
2. Market Segmentation:
The company can segment the market on the basis of Nationality, Age, Sex,
Price and Product Usage Rate.
Conclusion:
By adopting the above mentioned strategies, the company M/s Challenger can
minimise its current problems.
Case 2
M/s MAC India’s Health Drink
Important Points:
Assumptions:
a. M/s MAC India has the financial strength and marketing support to
survive in the initial years of operations in India.
(1) As per the market demand, we are required to suggest M/s MAC India, the
Marketing Mix Strategy, which is the four P’s:
a. Product
b. Place
c. Price
d. Promotion
a. Product:
The company can start by stating that the product, ‘Health Drink’ is a very
novel concept. It gives energy as it contains real fruit and is more thicker than
the other drinks. It can be made available in various colours and flavours, such
as:
Strawberry – Dark Magenta
Orange – Orange
Pineapple – Yellow
Apple – Pink/Red
b. Price:
The company can follow the product-quality relationship pricing objective,
wherein the quality of the product is higher than the competitors’ quality. This
can be done when the target market is less price sensitive when the product is
of special quality.
c. Promotion:
The company can employ the promotional tools with the objective of produce
‘Pull Strategy’, where the customers will ask for the product themselves.
For the promotion purpose, the company can use the Non-Personal
Communication Channels as a media, such as:
Television
Radio
Newspaper
Distributing free samples
Coupons
d. Place:
The distribution channel for M/s MAC India can be like this:
Manufacturer
Carrying & Forwarding Agents/Agencies
Stock storing & stock keeping units
Retailer
Customer
2. Demographic variables
a. age
b. gender (Male and Female)
c. sexual orientation
d. family size
e. family life cycle
f. Education Primary, High School, Secondary, College, Universities.
g. income
h. occupation
i. education
j. socioeconomic status
k. religion
l. nationality/race
m. language
3. Psychographic variables
a. personality
b. life style
c. value
d. attitude
e. Behavioural variables
f. benefit sought
g. product usage rate
h. brand loyalty
i. product end use
j. readiness-to-buy stage
k. decision making unit
Implementation:
Marketing Mix:
The Indian beverage market size is 720 million liters. M/s MAC India should take
care that their health-based-drink should not be positioned against any existing
brands, like Frooti. It should be first positioned as a apple-based drink, as
apple is associated with health, by a large number of people. Later on, it can
come up with different flavours like, orange, lime, pineapple, etc. Purchasing
these fruits at the respective places they are produced in abundance, will be
economical. The supply can be in different markets, where they can be sold
reasonably. Later, they can expand as the market demands.
Market Segmentation:
This health drink by M/s MAC India is suitable for all the general public. The
natural and sweet flavours can make this product a favourite amongst the
young generation.
Conclusion:
By adopting the above mentioned strategies, the company M/s MAC India can
minimise its current problems.
Case 3
The case of the Car Company
1. The Chairman of the Car company believes that the modern marketing
concepts are useless.
2. The Head of the Design Department also has the same view and believes
in ignoring customers’ viewpoints.
3. This car company has been concentrating only on the sales function.
4. A Marketing Manager is to be appointed.
Solution/s:
The Marketing Manager should first bring in all the marketing concepts which
are totally opposite the existing selling concepts.
Selling Marketing
Modern Marketing Concept
Concept Concept
Profit through
Profit through Delighted Customer,
Ends customer
sales volume Innovative Marketing.
satisfaction
The Marketing Manager should do a lot of research work, regarding the needs of
the consumer, to find out the trend of the market and consumer expectations.
The designing part would be done only after the research and hence, the
pushing of the product concept would be eliminated and the firm would run
into profits.
Implementation:
The above strategies can be implemented implementing the following
organisation structure.
Functional
Marketing
Organisatio
n
Chairman
Consumer
Marketing R&D Sales Distribution
Research
Manager Manager Manager Manager
Manager
Conclusion:
By adopting the above mentioned strategies, the car company can minimise its
current problems.
Case 4
The case of Sugandha Mouth Fresheners Ltd.
Important Points:
Solution/s:
Product Positioning:
A product's position is how potential buyers see the product. Positioning is
expressed relative to the position of competitors.
Positioning is something (perception) that happens in the minds of the target
market. It is the aggregate perception the market has of a particular company,
product or service in relation to their perceptions of the competitors in the
same category. It will happen whether or not a company's management is
proactive, reactive or passive about the on-going process of evolving a position.
But a company can positively influence the perceptions through enlightened
strategic actions.
In marketing, positioning has come to mean the process by which marketers try
to create an image or identity in the minds of their target market for its
product, brand, or organization. It is the 'relative competitive comparison' their
product occupies in a given market as perceived by the target market.
Implementation:
For Sugandha Mouth Fresheners and Khushboo, the company can position their
product on the basis of:
i. USP, i.e., the unique features of the product must be highlighted very
clearly.
ii. Sugandha Mouth Fresheners can be positioned as a substitute for herbal
products, as it contains, tulsi, eliachi, etc.
iii. Proper knowledge can be given to the customer through catchy slogans
and promotional tools.
Conclusion:
By adopting the above mentioned strategies, the Sugandha Mouth Fresheners &
Khushboo can minimise their current problems.
Case 5
Crunchy & crispy Ltd.
Important Points:
1. Crunchy & crispy Ltd. are in the processed food business and facing
competition from unorganised sector.
2. Their existing brand potato chips has been badly affected due to mushroom
growth of smaller units with low overhead. These smaller units can afford
to keep the price low.
3. The Marketing Manager has an idea in his mind of introducing a new
product, i.e., Honey coated Peanuts.
4. He needs to make marketing strategies for marketing segmentation, target
market and product positioning with branding strategy.
Solutions/s:
B. Idea Screening
a. The object is to eliminate unsound concepts prior to devoting resources
to them.
b. The screeners must ask at least three questions:
i. Will the customer in the target market benefit from the
product?
ii. Is it technically feasible to manufacture the product?
iii. Will the product be profitable when manufactured and delivered
to the customer at the target price?
D. Business Analysis
a. Estimate likely selling price based upon competition and customer
feedback
b. Estimate sales volume based upon size of market
c. Estimate profitability and breakeven point
F. Technical Implementation
a. New program initiation
b. Resource estimation
c. Requirement publication
d. Engineering operations planning
e. Department scheduling
f. Supplier collaboration
g. Resource plan publication
h. Program review and monitoring
i. Contingencies – ‘what-if’ planning
Market Segmentation:
The market can be segmented on the basis of:
1. Geographic variables
e. region of the world or country, East, West, South, North, Central,
coastal, hilly, etc.
f. country size: Metropolitan Cities, small cities, towns.
g. Density of Area Urban, Semi-urban, Rural.
h. climate Hot, Cold, Humid, Rainy.
2. Demographic variables
n. age
o. gender Male and Female
p. sexual orientation
q. family size
r. family life cycle
s. Education Primary, High School, Secondary, College, Universities.
t. income
u. occupation
v. education
w. socioeconomic status
x. religion
y. nationality/race
z. language
3. Psychographic variables
l. personality
m. life style
n. value
o. attitude
p. Behavioural variables
q. benefit sought
r. product usage rate
s. brand loyalty
t. product end use
u. readiness-to-buy stage
v. decision making unit
Product Positioning:
A product's position is how potential buyers see the product. Positioning is
expressed relative to the position of competitors.
Positioning is something (perception) that happens in the minds of the target
market. It is the aggregate perception the market has of a particular company,
product or service in relation to their perceptions of the competitors in the
same category. It will happen whether or not a company's management is
proactive, reactive or passive about the on-going process of evolving a position.
But a company can positively influence the perceptions through enlightened
strategic actions.
In marketing, positioning has come to mean the process by which marketers try
to create an image or identity in the minds of their target market for its
product, brand, or organization. It is the 'relative competitive comparison' their
product occupies in a given market as perceived by the target market.
Conclusion:
By adopting the above mentioned strategies, the company Crunchy & Crispy
Ltd. can minimise its current problems.
Case 6
The case of M/s SuperStar Biscuits Ltd.
1. The company M/s SuperStar Biscuits Ltd. deals with producing plain,
salted and glucose biscuits.
2. M/s SuperStar Biscuits Ltd. is planning to launch new animal-shaped
biscuits for children.
3. M/s SuperStar Biscuits Ltd. is a Mumbai-based company.
Solution/s:
Marketing Planning:
A marketing plan is a written document that details the actions necessary to
achieve a specified marketing objective(s). It can be for a product or service, a
brand, or a product line. It can cover one year (referred to as an annual
marketing plan), or cover up to 5 (sometimes referred to as five) years.
Marketing strategies:
There are numerous definitions of what strategy is, but again James Quinn
again gave a succinct general definition: "A strategy is a 'pattern' or 'plan' that
'integrates' an organization's 'major' goals, policies and action sequences into a
'cohesive' whole"
He went on to explain his view of the role of `policies', with which strategy is
most often confused: "Policies are rules or guidelines that express the 'limits'
within which action should occur.
Simplifying somewhat, marketing strategies can be seen as the means, or
`game plan', by which marketing objectives will be achieved and, in the
framework that we have chosen to use, are generally concerned with the 4 Ps.
• PRODUCT
i. developing new products, repositioning or relaunching existing
ones and scrapping old ones
ii. adding new features and benefits
iii. balancing product portfolios
iv. changing the design or packaging
• PRICE
i. setting the price to skim or to penetrate
ii. pricing for different market segments
iii. deciding how to meet competitive pricing
• PROMOTION
i. specifying the advertising platform and media
ii. deciding the public relations brief
iii. organizing the salesforce to cover new products and services or
markets
• PLACE
i. choosing the channels
ii. deciding levels of customer service
In principle, these strategies describe how the objectives will be achieved. The
4 Ps are a useful framework for deciding how the company's resources will be
manipulated (strategically) to achieve the objectives. It should be noted,
however, that they are not the only framework, and may divert attention from
the real issues. The focus of the strategies must be the objectives to be
achieved - not the process of planning itself. Only if it fits the needs of these
objectives should you choose, as we have done, to use the framework of the 4
Ps.
Conclusion:
By adopting the above mentioned strategies, the company M/s SuperStar
Biscuits Ltd. can launch their new product successfully.
Case 7
The case of U & A Foods Pvt. Ltd., selling Mushrooms.
Solution/s:
Consumer Awareness:
Product Life-Cycle:
C. Growth stage
i. costs reduced due to economies of scale
ii. sales volume increases significantly
iii. profitability
iv. public awareness
v. competition begins to increase with a few new players in
establishing market
vi. prices to maximize market share
D. Mature stage
i. costs are very low as you are well established in market & no
need for publicity.
ii. sales volume peaks
iii. increase in competitive offerings
iv. prices tend to drop due to the proliferation of competing
products
v. brand differentiation, feature diversification, as each player
seeks to differentiate from competition with "how much product"
is offered
vi. very profitable
Distribution Channels:
Traditionally, distribution has been seen as dealing with logistics; how to get
the product or service to the customer. It must answer questions such as:
a. Should the product be sold through a retailer?
b. Should the product be distributed through wholesale?
c. Should multi-level marketing channels be used?
d. How long should the channel be (how many members)?
e. Where should the product or service be available?
f. When should the product or service be available?
g. Should distribution be exclusive, selective or extensive?
h. Who should control the channel (referred to as the channel captain)?
i. Should channel relationships be informal or contractual?
j. Should channel members share advertising (referred to as co-op ads)?
k. Should electronic methods of distribution be used?
l. Are there physical distribution and logistical issues to deal with?
m. What will it cost to keep an inventory of products on store shelves and
in channel warehouses?
Channels:
There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services - the
latter offering anything from televisions through tools. There has also been
some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a
significant increase in retail outlets for the service sector. Outlets such as
estate agencies and building society offices are crowding out traditional
grocers from major shopping areas.
Conclusion:
By adopting the above mentioned strategies, the company U & A Foods Pvt.
Ltd. can sell mushrooms in a big way all over India.
Case 8
The case of Pratima Ltd., selling Cameras.
Solution/s:
2. Demographic variables
n. age
o. gender (Male and Female)
p. sexual orientation
q. family size
r. family life cycle
s. Education Primary, High School, Secondary, College, Universities.
t. income
u. occupation
v. education
w. socioeconomic status
x. religion
y. nationality/race
z. language
3. Psychographic variables
l. personality
m. life style
n. value
o. attitude
p. Behavioural variables
q. benefit sought
r. product usage rate
s. brand loyalty
t. product end use
u. readiness-to-buy stage
v. decision making unit
Promotional Plan:
Promotion is one of the four aspects of marketing. The other three parts of the
marketing mix are product management, pricing, and distribution.
Personal selling
Non-personal selling
Advertising
Sales promotion
Publicity and public relations
Tradeshows
Direct selling
Product placement
Event Marketing
Conclusion:
By adopting the above mentioned strategies, the company Pratima Ltd. can
minimise its current dilemma.
Case 9:
The Launch of a new Toothpaste brand.
Solution/s:
A. Idea Generation:
a. Ideas for new products can be obtained from customers (employing user
innovation), the company's R&D department, competitors, focus groups,
employees, salespeople, corporate spies, trade shows, or through a
policy of Open Innovation. Ethnographic discovery methods (searching
for user patterns and habits) may also be used to get an insight into new
product lines or product features.
b. Formal idea generation techniques can be used, such as attribute
listing, forced relationships, brainstorming, morphological analysis and
problem analysis
B. Idea Screening:
a. The object is to eliminate unsound concepts prior to devoting resources
to them.
b. The screeners must ask at least three questions:
i. Will the customer in the target market benefit from the
product?
ii. Is it technically feasible to manufacture the product?
iii. Will the product be profitable when manufactured and delivered
to the customer at the target price?
F. Technical Implementation
a. New program initiation
b. Resource estimation
c. Requirement publication
d. Engineering operations planning
e. Department scheduling
f. Supplier collaboration
g. Resource plan publication
h. Program review and monitoring
i. Contingencies – ‘what-if’ planning
3. Growth stage:
costs reduced due to economies of scale
sales volume increases significantly
profitability
public awareness
competition begins to increase with a few new players in
establishing market
prices to maximize market share
4. Mature stage:
costs are very low as you are well established in market & no
need for publicity.
sales volume peaks
increase in competitive offerings
prices tend to drop due to the proliferation of competing
products
brand differentiation, feature diversification, as each player
seeks to differentiate from competition with "how much product"
is offered
very profitable
Although some marketers have added other Ps, such as personnel, typically the
4 Ps, or marketing mix refer to:
Product:
Price:
The price is the amount paid for a product. In some cases, especially in
business-to-business marketing this can also include the total cost of
ownership. Total cost of ownership may include costs such as installation and
other products required to deliver a complete functional solution.
Place:
Promotion:
Conclusion:
By adopting the above mentioned strategies, the company can launch its new
brand successfully.
Case 10
Sales Promotion Strategy for Ice-Cream
Solution/s:
Sales promotion is one of the four aspects of promotional mix. (The other three
parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Sales promotions are non-personal promotional
efforts that are designed to have an immediate impact on sales. Media and
non-media marketing communications are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include:
coupons
discounts and sales, including Blue Cross Sale
contests
point of purchase displays
rebates
free samples (in the case of food items)
gifts and incentive items
free travel, such as free flights
Advertising Strategy:
Conclusion:
By adopting the above mentioned strategies, the company can recreate its
brand ‘Koool’ successfully.