UNIVERSITY OF PETROLEUM & ENERGY STUDIES

CENTRE FOR CONTINUING EDUCATION

EXECUTIVE MBA
(OIL & GAS MANAGEMENT)
SEMESTER I
YEAR: 2014 SESSION: JULY
ASSIGNMENT 1
FOR
Marketing Management
M!CM ""1D#
TO BE FILLED BY THE STUDENT#
NAME$ %%%%%%%%%%%%%%%%%%%%%%%
SAP NO&REGN NO$ %%%%%%%%%%%%%%%%%%%%%%%
Section A (20 Marks)
Write short notes on any four of the following
1. Marketing concept, customer value and satisfaction
2. Developing growth strategies
3. Factors affecting the feasiility of segmentation
!. "roduct development process, product mi# and line decisions
$. %randing and rand e&uity
Section B (30 marks)
(Attempt any three)
1. Descrie the macro'micro environmental analysis.
2. (#plain the strategic planning, control and implementation process.
3. (lucidate the uyer or consumer ehaviour and cultural, social, personal, psychological
factors.
!. Descrie the randing strategies and packaging
Section C (50 marks)
(Attempt all questions. Eery question carries !0 marks)
)ead the case *Product development from concept to customer+ and answer the following
&uestions,
Case Stu"y# $ro"uct "eelopment %rom concept to customer
-ike.s /swoosh. is one of the world.s most identifiale logos and, in 0ust 32 years, -ike has
grown to e the industry.s largest sports and fitness company. )evenue for -ike in financial year
211$ was 234 13.5 illion.
-ike directly employs appro#imately 2!,311 people and -ike.s suppliers, shippers, retailers and
service providers employ close to one million people on si# continents.
6n addition, -ike.s corporate responsiility mission is to help the company achieve profitale and
sustainale growth and to protect and enhance the rand and company.
-ike elieves that corporate responsiility work should not e separate from the usiness, ut
should instead e fully integrated into it. 7he company.s sustainale growth suggests that -ike
will e around for generations to come. 7he principles of sustainaility also re&uire -ike to find
ways of generating profit while minimising any potentially negative impact on communities or
nature.
-ike.s mission statement is intentionally road and outward looking, focussing on the needs of
athletes, and, through its corporate responsiility work, consideration is given to the needs of
communities around the world.
-ike.s focus is to continually seek to innovate, design and develop products to improve athletic
performance. 6ts overriding desire is to design products with true performance innovation and
technology enefits which help the athlete perform etter. With its latest innovation, -ike
scientists and designers have developed -ike Free, a sports shoe descried as a foot'
strengthening training tool.
Anticipatin& the nee"s o% consumers
6nnovation is what sets -ike apart in the industry. 6t started in 1851 when %ill %owerman, then a
3niversity of 9regon track coach, poured ruer into his wife.s waffle iron hoping to create a
new and etter sole for running shoes for his track athletes. 7he result ' a light waffle sole that
transformed the running world. When thinking aout what consumers might need in their
footwear, the ne#t innovation came in the form of -ike :ir, a durale and lightweight cushioning
system for athletic shoes. -ike had anticipated the need for a shoe which had a cushioning
system which lasted longer than foam, reduced shock and distriuted pressure.
'esearch an" "eelopment
;ow does -ike develop its products and decide what does and doesn.t make the cut when it
comes to innovation< 7he -ike 4ports )esearch =aoratory >-4)=? is located on the -ike
campus in "ortland, 9regon in the 3nited 4tates of :merica. 7he research and development
>)@D? centre.s role is to identify the physiological needs of athletes. 7he -4)= works directly
with -ike.s design teams and has estalished partnerships with ma0or universities throughout
:sia, (urope and -orth :merica.
7o research and develop products, the scientists have an incredile array of measurement and
analysis tools. 7heir data collection includes virtually every variety of muscle sensor, pressure
platform, reath analyser, foot scanner and thermal imaging device. 7here are high'speed video
cameras that capture soccer kick data at 1,111 frames per second and a scanner that produces, in
0ust seconds, a perfect 3D digital image of your foot.
%ut it does not stop thereA 7here are testing surfaces, such as a huge section of regulation
asketall hardwood, artificial soccer turf, a 51'meter sprinters. track runway and endless field
testing that takes place outdoors in various terrains.
7he -4)= takes an idea, and researches and prepares a design rief. 7he rief is then passed
over to the company.s 6nnovation Bitchen C an incuator for new pro0ects.
6n the first phase of developing what was to ecome -ike Free, the /cooks. in the Bitchen took
the -4)= description of /natural technology. and started asking what sort of shoe people might
e looking for ne#t. 6n the process of talking to athletes and coaches, the designers spoke to Din
=ananna, then the track coach at 4tanford 3niversity, who told them aout his unusual training
method C having athletes run on grass without shoes.
;owever, the idea led to an e#tensive iomechanical research pro0ect to see e#actly what
happens when we run arefoot. 4ports shoes provide a certain amount of control or cushioning
ased on the notion that they are needed to complement the natural action of the foot. -ike
researchers wanted to know why =ananna.s athletes, who ran arefoot in training, raced faster.
7he researchers rought in 11 men and 11 women to run arefoot on grass to see e#actly how the
ody reacts without shoes on. 7hey were videotaped with high'speed cameras to capture their
movementsE they had reflective markers attached to their 0oints to allow easy calculation of 0oint
angles during their stride, and wafer'thin pressure sensors attached to the ottoms of their feet to
measure their impact with the ground.
:t the end of the e#periment, -ike had the most comprehensive picture of the iomechanics of
arefoot running ever developed.
7he challenge was to translate that arefoot e#perience, which promotes good iomechanics for
runners, into a shoe.
)esearchers developed prototypes, using any materials which could closely copy the arefoot.
-e#t came the challenge to uild the shoe. : shoe is uilt on a model of the foot, called a last,
allowing the upper and outersole to e uilt around it. )esearchers had to develop a rand new
version of the last in order to copy the way a are foot operates. 7his resulted in the shoe.s upper
eing designed in a mesh that has small holes in it, allowing the foot to e encased ut feel free.
7here is no heel counterE instead the heel fits snugly in the shoe as the inner sole allows the foot
to sit naturally in a neutral position.
7he shoes are meant to e used in tandem with other training and racing shoes. 7he goal is to use
-ike Free to help strengthen the feet in addition to using more traditional, supportive running
and training shoes.
Ensurin& correct pro"uct positionin&
-ike was conscious that -ike Free needed to e positioned as an additional training shoe in your
kit ag, not necessarily as a replacement to your traditional running shoes. 3nlike typical athletic
shoes, -ike Free shoes allows the foot to move, fle# and grip 0ust as it would if running arefoot.
7he advertising and marketing campaigns were carefully crafted to ensure that consumers
recognised -ike Free as a training shoe which could help uild additional strength and therefore
the aility to train longer C not as a replacement to its other sports shoes. 7his product
positioning was a alancing act, re&uiring careful communication and application.
(ducation was the key to positioning the shoe in the market. -ike Free was launched under
limited and very tight distriution in the lead up to the ma0or advertising campaign. 7he shoe was
distriuted initially only through running speciality stores efore eing roadened to general
sporting goods stores.
'eachin& the consumer
(sin& teleision an" cinema
:dvertising is synonymous with -ike. 6n partnership with its advertising agency, -ike has
created some of the world.s most attention'graing advertising.
7he -ike Free advertising campaign was derived from a truth aout the product. :s the only
shoe on the market that works with the natural motion of your foot to make it stronger, it gives
people the aility to ecome stronger, etter athletes than they have ever een efore. 7he
campaign, )eincarnate, was aout athletes /leaving their old selves ehind. and discovering their
potential. 7he tennis player Maria 4harapova, the footaller Fristiano )onaldo and Wimledon
champion )oger Federer were among the athletes used in a 7D commercial to advertise -ike
Free, called "ower to your feet.
Sta%% pro"uct a)areness
;aving a new and innovative product is one thing, ut a company must ensure staff working in
sports stores understand the product, its enefits and how it should e used. 7o do this, -ike
created a flash'animated multimedia learning environment. Falled -ike 4ports Bnowledge
3nderground >-ike 4B3?, it mirrors a suway rail system with each /stop. representing a
training activity where new shoes such as -ike Free are displayed.
Conclusion
-ike aims to ring inspiration and innovation to every athlete in the world C and it considers
everyody to e an athleteA :s a high profile, industry leading sports company, -ike continually
strives to keep itself at the forefront of product innovation and design. 7hrough e#tensive
research and development, the -ike Free shoe was created in response to the recognition that
arefoot running can strengthen athletes. feet and legs naturally.
-ike Free was developed after e#tensive research and product testing. With a strategic promotion
campaign, -ike hopes to deliver the message that -ike Free is not designed to replace athletic
performance footwear ut to e an important part of training, thus improving performance.
*uestions#
1. Fomment on the importance of customer satisfaction for a seller or a service provider.
2. What is -ike.s corporate responsiility mission<
3. Discuss the history of -ike shoes.
!. *:dvertising is synonymous with -ike+. (#plain this statement.
$. :nalyse the case in your own words.