MARKETING MANAGEMENT I

ASSIGNMENT 1 – 3

Group – 7
1. Ashik Ahmed – 190101032
2. Chirag Chaudhary – 190103046
3. Danish Saeed – 190101039
4. Naincy Chittransh – 190101067
5. Rachit Srivastava – 190103173
6. Varun Kaore – 190103165

Assignment-1

Q1. The first task is of visiting some companies’ Web sites, to see if you feel that the
company is responding to the changes in marketing today, namely, customer-orientated
marketing. Discuss in detail.

Swiggy

Swiggy is an online food ordering and delivering service based in Bengaluru. It operates
through its website and mobile application. Swiggy’s website and mobile application is user
friendly which enables easy browsing and navigation across categories, offers, occasional and
festive promotions.

The website uses crisp and catchy phrases like Hungry? Cooking gone wrong? Unexpected
Guests? Movie Marathon? Game Night? Late night at office? Phrases that instantly catch
customers’ attention.

Their features are purely based on customer wants like- No Minimum Order, Live Order
Tracking & Lightning Fast Delivery. They not only provide a platform for food delivery but
also present the food culture and popular restaurants of various cities of India.

In order to build a strong and long-term customer relationship Swiggy has introduced Swiggy
Super subscription which is a membership program that provides free deliveries, no surge
charge and a surprise delight to the customers.
Swiggy observes, strategizes and builds its services on the situational demands of the users
whether be it a movie night or late night at office they customize the search accordingly and
offer best outlets near your location. In order to satisfy customers and improve their services,
Swiggy asks for valet as well as food feedback from the customers. This benefits potential
customers for selection of restaurants and meals. All these cues reflect that Swiggy as a service-
based company, is highly customer-centric.

Swiggy’s main competition comes from Zomato and UberEATS. What sets Swiggy apart from
most of its competitors is their fast delivery service and the tracking feature on their mobile
app which has also enabled them to attract venture capital.

The Complementors and/or Suppliers of Swiggy are the local restaurants and food chains which
tie up with it to join and get featured on Swiggy’s platforms. The various introductory and
opportune discounts/ offers are only made possible in cooperation with the restaurants which
provide mutual benefits to both.

Starbucks

Starbucks Corporation is an American coffee company and coffee house chain founded in
Seattle, Washington in 1971. It operates at 30,000 locations around the world. Starbucks India
has its own website with a user-friendly interface and an attractive landing page.

Since it has positioned itself as a premium brand in the industry, it has to take some initiatives
to attract customers in a fiercely competitive market. For the same its main marketing initiatives
are as follows.

 Starbucks takes a lot of pride in its history and the quality that it provides. This is
evident by the ‘Coffee’ section of the website where it talks about its passion for brewing the
best quality coffee and consequently looking for the best quality beans which can only be found
at high altitudes. This reflects an uncompromising attitude and is a really important selling
point when it comes to coffee enthusiasts.
 In the same section, Starbucks gives us an opportunity to customise the way our cup of
coffee is made. This option has been named ‘Find your perfect coffee’ and within the same,
there is a ‘coffee finder’ option which asks 3 questions to the customer regarding the flavour,
texture and intensity of the coffee and based on our responses, we get a range of options and
the stores near us that provide those options. This is a unique strategy that isn’t practised by
most of its competitors
 Starbucks is involved in quite a few community engagements namely ‘Swastha’, a
centre for special education and rehabilitation, a cause that it supports jointly with the Tata
Group and the ’Chai Project’ which is a cause to help tea growing farmers get access to proper
irrigation and sanitation facilities.
 Starbucks offers membership options to its loyal customers with attractive rewards and
an option to send gifts to our loved ones and friends. This is a great customer engagement
initiative.

As we have observed, Starbucks believes in retaining customers with high CLV as is evident
from its Frequency programs mentioned above in point no. 4. Additionally, Starbucks is a great
example of a company that uses Customer Value Management (CVM) which is highlighted
through its schemes that allow customisation as discussed in point no.2.

Myntra

Myntra is an Indian fashion e-commerce company headquartered in Bengaluru, India In May

2014, Myntra.com was acquired by Flipkart and is currently owned by Walmart. Myntra is a
one stop shop for all your fashion and lifestyle needs.

Myntra's value proposition revolves around giving consumers the power and ease of purchasing
fashion and lifestyle products online. Offerings such as the largest in-season product catalogue,
100% authentic products, cash on delivery and 30 day return policy make Myntra, the preferred
shopping destination in the country.

To make online shopping easier for the users, a dedicated customer connect team is on standby
to answer the queries 24x7.

Myntra understands its shoppers' needs and caters to them with choice of apparel, accessories,
cosmetics and footwear from over 500 leading Indian and international brands at cheaper costs.

Myntra’s website and mobile application centres around user. The interface has been designed
in such a way that anyone can search and navigate the products easily.
Myntra’s competitors include Jabong, Yepme, FashionAndYou, Amazon, Snapdeal. Myntra
has enjoyed the first mover advantage and this has made them a reliable online fashion retailer.
Myntra has successfully used social media networking to expand its customer base. Aggressive
marketing and innovative marketing campaigns have enabled them to compete and survive
strongly in this sector.

In order to develop a strong and long-term customer relationship, Myntra provides lucrative
discounts, customise outfit list and suggestions as per customer taste and a wishlist option to
where the customer can add the product for future references. They have also come up with
Myntra Insider subscription to make a privilege customer platform where they will get
exclusive coupons of Myntra as well as other Merchants like BookmyShow. So, it is very
evident from these manifestations that Myntra is very customer-centric and values customer
relationship and satisfaction.

For procurement, they receive the finished goods from various brands, store them at their
warehouses and then ship to the customer as per the order. Logistics is one if the key areas for
the company and they’ve tied up with third party courier services for delivery of their products.
 Assignment-2

Q2. Discuss the core brand value of any 5 brands of your choice.

Dove

Dove is a personal care brand owned by Unilever. Their products include antiperspirants/
deodorants, body washes, beauty bars, lotions/moisturizers, hair care, and facial care products.

Dove believes that beauty is not about age and shouldn’t be stereotyped instead it shows beauty
as a source of confidence, and not anxiety.

They’re on a mission to help women develop a positive relationship with the way they look.

Their core brand values are reflected in their promotional campaigns. Dove focuses on
customer engagement and empowerment through campaigns like Project#ShowUs wherein
they’ve offered a platform for women and non-binary individuals all over to create the world’s
largest photo library to shatter beauty stereotypes. With over 5000 images, they offer a more
inclusive vision of beauty to all media & advertisers.

Adidas

Adidas is a multinational corporation, founded and headquartered in Herzogenaurach,

Germany, that designs and manufactures shoes, clothing and accessories.

The adidas Group strives to be the global leader in the sporting goods industry with brands
built on a passion for sports and a sporting lifestyle. They are committed to continuously
strengthening the brands and products to improve the competitive position.

The core values are:

 Performance - Sport is the foundation for all they do and executional excellence is a core
value of their Group.
 Passion - Passion is at the heart of the company. They continuously move forward, innovate,
and improve.
 Integrity - They are honest, open, ethical, and fair. People trust them to adhere to the word.
 Diversity - They encourage healthy debate and differences of opinion with different ideas,
strengths, interests, and cultural backgrounds to make the company succeed. Adidas sponsors
a large number of sports teams and clubs which matches their vision and values.

Toyota

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered

in Toyota, Aichi, Japan. Toyota is the world's market leader in sales of hybrid electric vehicles,
and one of the largest companies to encourage the mass-market adoption of hybrid vehicles
across the globe.

They aim to be the most respected and successful enterprise, delight customers with a wide
range of products and solutions in the automobile industry with the best people and the best
technology.

The core values are:

 Honour the language and spirit of the law of every nation and undertake open and fair
corporate activities to be a good corporate citizen of the world.
 Respect the culture and customs of every nation and contribute to economic and social
development through corporate activities in the communities.
 Dedicate ourselves to providing clean and safe products and to enhancing the quality of life
everywhere through all our activities.
 Create and develop advanced technologies and provide outstanding products and services
that fulfil the needs of customers worldwide.
 Foster a corporate culture that enhances individual creativity and teamwork value, while
honouring mutual trust and respect between labour and management.
 Pursue growth in harmony with the global community through innovative management.
 Work with business partners in research and creation to achieve stable, long-term growth
and mutual benefits, while keeping ourselves open to new partnerships.
 Redmi

MAKING QUALITY TECHNOLOGY ACCESSIBLE TO EVERYONE

Founded in 2010 in China, Xiaomi is an electronics company, mostly making and investing in
smartphones, apps, laptops and various other consumer electronic appliances.

 With its vision “innovation for everyone”, Xiaomi through its brand Redmi aims to deliver
high-quality products with cutting-edge technology to everyone.
 It focuses on refining and enhancing its products to create the best user experience possible.
Redmi has consistently incorporated its consumers’ feedback into their products, keeping set
their product prices according to the customers’ satisfaction and also continuously maintaining
product quality at comparatively cheaper prices than competitors.
 Due to their consumer centric approach to innovation and development, they have been
able to capture the highest market share in the Indian smartphone segment. Redmi as a brand
is now perceived as an affordable brand providing quality products across various categories.

AMUL

AMUL – THE TASTE OF INDIA

AMUL (Anand Milk Union Limited) is an Indian cooperative dairy company, founded in 1948.
It has helped India emerge as the largest milk producer in the world. Its products range from
milk, butter, ice-cream, chocolate and more. The core values of Amul are enumerated below

 Amul as a brand has been highly accepted by the consumers since its inception because of
its consistency across all domains of the company. The Amul girl on the butter packaging is an
unmissable part of their marketing strategy and has almost become a part of the customer’s
memory due to its innovative and unique concept (relating to the current socio-economic or
political climate) and it is therefore an integral part of its core brand value that is to do its bit
for social causes.
 Amul’s main strength has been that its brand has been reinforced in the market, till this day,
by its source of communication with the consumers. Campaigns like “Amul – The Taste of
India” have helped them establish a solid foothold in the consumers’ mind.
 Their products are available within close reach of everyone and focus on all classes of
consumers. Quality and price of their products has always satisfied the customer and this has
led to an increased consumer loyalty towards them, and has helped them slowly build strong
sentimental value towards the brand in the last 6 decades.
 Assignment-3

Q3. Attached case study (Developed from published sources) has 3 questions. Discuss all
three.

1. Appraise the environmental forces in context of this situation.

Environmental forces include the political, economic and socio-cultural environments. In this
case, the political and regulatory environment was crucial since the regulatory body was the
one that tested the sample and announced the verdict. Simultaneously, the role of the
government, as in the Food minister was clear in the sense that it took actions based on what it
had in front of it. The earlier decision to ban Maggi for 6 months as well as the decision to
overturn the ban after clearances from UK and Canada.
The socio-cultural environment was shaken to the core due to the severity of the allegations. A
trusted brand that had a substantial market share in its segment was accused of endangering the
health of its unassuming customers and hence, there was a lot of hue and cry which was really
hard to control but to Nestlé’s credit, they did a good job of handling the customer sentiment
at that point and made efforts to engage and reassure the customers of their innocence.
The economic aspect involved great losses for Maggi as a brand and for Nestle in monetary
terms given that they had to destroy an entire country’s stock but the eventual return to the
market would be a relief considering the size of the Indian market.

2. To sustain consumer trust, could Nestle have responded any differently?

After the initial response of Nestlé India being of outright rejection of the accusations and its
strong social campaign to convince its consumers that Maggi was absolutely safe to consume,
it took a U-turn and recalled the Maggi Noodles produced in India and destroyed $50 million
worth of Maggi Noodles. Consumers could perceive this as a lack of the company’s confidence
in its own product and hence would reflect in the consumers’ confidence in the company’s
product. With 80% market share in the instant noodle segment, the subsequent recall of the
noodles resulted in a huge loss for Nestlé India both monetarily and in terms of brand image.
Nestlé India shouldn’t have declared an outright rejection to the accusations and could’ve kept
a neutral stance on the issue until a detailed analysis had been done on the issue. The change
in their stance towards the allegations could’ve made the consumers lose their sense of
consistency of the product quality and this could’ve been avoided by taking a patient approach
and having solid grounds to plead their innocence.
3. What are the ethical considerations in this business situation?
Ethical considerations were really important in this case. It appeared that there wasn’t complete
transparency on the part of the government and Nestlé in terms of accepting or denying the
allegations. Since there were strong reactions on the issue, both parties needed to be
circumspect with their respective stands on the issue. Nestlé was quick to plead its innocence
but eventually had to order a recall of a large volume of Maggi which meant that their
credibility was in question given their earlier statements. Since Nestlé was such a big
organisation; it could, given its considerable resources, present a good case in front of the
world. In this regard, the government and the FSSAI’s ethics can also be questioned given that
there was a prospect of losing out on a market leader, it could be possible that they might have
softened their stance.

References:
1. https://www.dove.com/in/stories/campaigns/showus.html
2. https://www.dove.com/in/stories/about-dove/our-vision.html
3. https://www.adidas-group.com/en/group/profile/
4. http://www.toyota-indus.com/corporate/vision-mission/
5. https://amul.com/
6. https://mobile.mi.com/in/
7. https://www.myntra.com/
8. http://www.starbucks.in/coffee
9. http://suvarnabskaushal.blogspot.com/2014/08/the-customer-values-provided-by-
amul.html
10. https://mobile.mi.com/in/
11. https://amul.com/m/organisation
12. https://www.swiggy.com/