Principles of Marketing

Assignment 2 : Principles of Marketing

1.

Dutch Lady aims to be market leader in yoghurt

Dutch Lady Milk Industries Malaysia Bhd., which holds a 30 per cent market share for non-fat

yoghurt drinks at present, aims to capture the lead position within two years.
Its managing director, Hans Laarakker, said the company is looking forward to launching more
yoghurt products to expand market share for this year. We will continue to have new products that meet the
needs of our customers, he told reporters at the launch of its new product, Shine 0% Fat Drinking
Yoghurt, in Kuala Lumpur today. He said Dutch Lady expects to maintain a 15-20 per cent year-on-year
growth in both sales value and volume. Generally, the market develops at a fast pace as theres a shift
towards healthy yoghurt drinks by young adults. So, there is room for us to grow, he added.
Earlier, Laarakker said the new product is targeted at young, energetic women between 20 and 40
years old, looking to maintain their physique and health. The Shine 0% Fat Drinking Yoghurt comes in five
flavours of strawberry raspberry, orange mango, lemon lime, apple aloe vera and peach passion.
Bernama.
a.

Write down the sales and marketing objectives for Dutch Ladys newly launched product called
Shine 0% Fat Drinking Yoghurt.

b.

List FOUR (4) major variables and their elements of market segmentation for Dutch Ladys yoghurt
in the Malaysian consumer market.

c.

Write down the Positioning Statement for Shine 0% Fat Drinking Yoghurt.

d.

Describe the characteristics of Dutch Ladys yoghurt in the introduction stage of the product life
cycle.

e.

As the marketing manager of Dutch Lady, recommend the push and pull strategies for Shine 0%
Fat Drinking Yoghurt to ensure maximum market coverage in Malaysia.

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2.

Sunsilk was introduced in the mid 1960s. Today it stands apart as the leading Hair Care brand in

the country. Sunsilk has presence in most high traffic outlets (HTO) across the country as well as the largest
user base. It has become a household name particularly among rural consumers by introducing highlyacclaimed sachet and implementing effective consumer sales promotion tools.
a.

Sunsilk has effectively used the following consumer sales promotion tools in most high traffic
outlets such as supermarkets.
(i)
(iii)

b.

Explain the objectives of the following sales promotion tools:

Samples

Coupons

(ii)
(iv)

Premiums

Contest

Sunsilk provides trade sales promotion incentives to the wholesalers and retailers such as trade
offer, price-off and free goods. Provide TWO (2) reasons why Sunsilk is providing such as the
above incentives to their resellers.

c.

The manufacturer markets Sunsilk in large quantities to the business (B2B) market especially hotel
operators. They use personal selling technique as their main tool to penetrate the market. Provide
FOUR (4) reasons for using personal selling in B2B markets.

Principles of Marketing
3.

Hybrid m-bikes to revolutionise industry

REVOLUTION Manufacturing Sdn Bhd expects to revolutionise the local motorcycle industry with the
countrys first hybrid motorcycles. The company yesterday unveiled two hybrid models called GW 800HB
and GW 500HB, which will be made available to the public next month.
Essentially a scooter, the 80cc GW 800HB will have a price tag of RM8,000, while the smaller 50cc GW
500HB will cost around RM7,000. The motorcycles hybrid drive system combines a conventional internal
combustion engine with an electric propulsion system.

Senior company executives said the hybrid

motorcycles are a successful collaboration of local engineers and researchers over the past four years.
Revolution Manufacturing chairman Datuk Dr Nohd Yahya Nordin said the company had spent some RM6
million to develop the green motorcycles.
Revolution Manufacturing and its marketing arm Serunai Emas Sdn Bhd expect to sell 16,000 units of the
vehicles this year. This should translate into a 2 percent share of the total motorcycle sales volume. For
2012, the companies aim to grab a bigger market share of 3 to 3.5 per cent. Serunai Emas chief executive
officer Aubrey Insley OHara said the motorcycles will also be exported to countries in the region as well as
South Africa and Eastern Europe. The initial export focus, however, will be Indonesia, Bangladesh and
Vietnam. We are in talks with the local parties there, OHara said during the motorcycles media preview
and test ride in Dengkil, Selangor, yesterday. He added that the company plans to set up its maiden
overseas plant in Bangladesh.
The hybrid motorcycles are produced by Hybrid Scooters Sdn Bhd, another subsidiary of Revolution
Manufacturing, at its factory in Dengkil.

Hybrid Scooters has the manufacturing license for hybrid

motorcycles from the ministry of International Trade and Industry. Company executives said the GW 800HB
is capable of travelling 220km on a full tank of fuel and a fully-charged battery. This makes it a practical
mode of transportation for long-distance travel as well as short hops, where the user may opt for the use of
only the electrical motor, Mohd Yahya said. OHara, meanwhile, said: One of the hybrid motorcycles most
distinctive advantages over a full-electric motorcycle is that the former is not completely dependent on
battery power. This is the major contributing factor to the unpopularity of full-electric motocycles in the
market today. Source: NST Business Times, Thursday 4 February 2011
a.

Describe the sales and marketing objectives of GW 800/500HB brand hybrid motorcycles.

b.

List FOUR (4) major variables and their elements of market segmentation for this new hybrid
motorcycles in the Malaysian consumer market.

c.

How would other conventional motorcycles brands such as HONDA, YAMAHA and MODENAS may
respond to the challenge of the new hybrid motorcycle rivalry? Justify your answers.

d.

Write down the Positioning Statement for GW 800/500HB hybrid motorcycles.

e.

Develop a marketing mix strategy to launch a new hybrid motorcycles for the Malaysian consumer
market.

Principles of Marketing
------------------------------------------------------------------------------------------------------------------------------------------4.

Suzuki aims to promote new identity

Petaling Jaya: Being the 12th largest automobile manufacturer in the world by production volume,

Suzuki needs no introduction. Still, for Suzuki Malaysia Automobile Sdn. Bhd., the local distributor for Suzuki
cars set up four years ago, one can never have enough recognition which is why managing director
Ibrahim Maidin is aggressively spearheading initiatives to create more awareness of the Japanese marquee
in Malaysia.
Suzuki brand is still young in Malaysia so there is a lot of room to grow the brand, he told
StarBizWeek. We are working closely with our Japanese principal to revamp the brand. In the first three
years, we were just selling numbers on the road. Now, we want to sell a way of life, Ibrahim said. With that,
he said Suzuki Malaysia intended to strengthen its dealer and service network to give better sales and
service to its customers. The company recently refurbished its showroom in Petaling Jaya to reflect its new
corporate identity. Ibrahim declined to disclose how much was spent.
Under its new identity, montages of what Ibrahim calls lifestyle images adorn the walls of its
showrooms. Suzuki is a globally successful brand and the challenge has been to deliver that image. We
want to give people who walk in the impression that we are not just selling cars, but a lifestyle, he said. The
company has 28 showrooms nationwide and plans to refurbish other outlets.

Step by step, we are

upgrading. He also said the company launched its Suzuki Assist Programme last month to boost after-sales
service. All of our existing and new customers qualify for this programme. They get a lot of benefits such as
quick accident claims approvals and added repair benefits. Previously, in the event of an accident, our
customers would need to settle their claims personally but now, we help them with the process.
On top of helping our customers maintain their cars, we will also cater to their lifestyle needs,
Ibrahim said. While he declined to provide any figures, he said the companys advertising and promotional
budgets would increase this year despite the current global economic downturn.
We dont want people to think that because times are bad, we will be reducing our advertising
exposure. We have to show that we are around even in difficult times, he said. Ibrahim said everyone
could expect to see more of Suzuki in certain magazines, newspaper and billboards. In terms of sales,
Suzuki Malaysia is aiming to sell 6000 units in its current financial year ending March 31 (FY2010), with its
best seller, the Suzuki Swift, comprising about RM73,788 (on the road, with insurance). Suzuki Malaysia
currently offers the Grand Vitara, SX4 Sedan, SX4 Crossover and Swift Sport. All models are fully imported
from Japan. Ibrahim said Suzuki Malaysia was studying the possibility of introducing one or two new models,
including a sports utility vehicle (SUV), to the Malaysian market and was currently studying the potential
market acceptance and accepted price levels of the vehicles.
Source: StarBizWeek, Saturday 8 August 2009.
a.

Describe the characteristics of Suzuki Swift cars in the maturity stage of the product life cycle for
the Malaysian consumer market.

b..

Which strategies in the product/market expansion grid is Suzuki Malaysia is using to grow sales
and profits for Suzuki SX4 Sedan (newly launch model)? Explain the strategies.

c.

The BCG growth-share matrix identifies four classifications of SBUs: stars, cash cows, question
marks and dogs. Now, Suzuki SX4 Sedan and SX4 Crossover are being classified in question
marks, what possible strategies should the management implement to move them in becoming
stars? Discuss.

Principles of Marketing