SECTION A

1. E (Reminder)
Remainder advertising is utilized essentially by well-established brands or in a follow-up to a broad ad
campaign, so as to remind the customer about the item or service, or to present a new theme in an
existing campaign
Examples for remainder advertising are Facebook Ads, Google ad words and monthly newsletters etc.
2. C (Technological Innovation)
Technological innovation is the most significant factor that has compelled many companies to eveolve
responsive strategies in marketing
Example: In the early years of digital marketing, Ads are created so that it suits to screen size of PC,
with rapid growth of mobile phones now marketers started creating Ads which suit the screen size of the
mobile, In this way the technological innovation is playing a major role in which marketers are
marketing their product or service.
3. B (He doesn’t complain but informs others about his experience)
Example: Most customers don’t complain about their experience due to many factors such as busy
lifestyle, they might not want to offend by saying a bad review but they do share their experience with
their friends and they won’t consider the brand for next time.
Personal Example: I have been to Barbeque Nation with a few friends and got a very delayed service by
the staff and after my dinner, I gave normal review to manager and didn’t complain about the service as
I didn’t want to offend him but after coming to campus I discussed with my other friends about my bad
experience in Barbeque Nation.
4. D(Psychographic Lifestyle)
The parameters we use for psychographic segmentation are social status, lifestyle, personality, values
and attitude of the customer.
Example:
Rolex manufactures the watches based on the lifestyle of the customers as they only target high net
worth individuals and luxury seeking people.
5. 1) Extrapolation: It is the first step for data analysis and a process in which we recognize beyond the
original values based on the current values.
2) Historical Analogy: It is a technique in which we find out the current values based on the historic data
pattern.
Example: Every year consumption of ice cream is high in the summer as per the historic data and using
that historic data we derive at the estimated demand for ice cream in the current year’s summer season
 3) Intuitive Reasoning: Intuitive is an ability to acquire the knowledge without any evidences, proofs or
any conscious reasoning. This can be due to experiences. This is due to way in which we are grown up,
like the first impression on someone like that.
6. A($75)
Selling the product at $75 then 60% of $75 equals $45, which will be my margin and the rest $30 is the
amount paid to the vendor
Or else 1-60%=40% then margin= $30/40% equal to $75
7. E (Outlines what the Company wants to be in future – A source of inspiration – Defines where the
organization wants to be.)
Only if the business or organization changes its focus completely, Vision will not change.
Example: Nike’s vision statement is “to bring inspiration and innovation to every athlete in the world”
8.
9. B (Yield Pricing)
Yield pricing is about adjusting the prices based on the demand to control the sales generated
Example: Post COVID 19 people will not show interest in watching a movie in a movie theatre as much
as how they used to watch before, so there will be a decrease in prices of the movie tickets to increase
the demand.
10. B(Push Strategy)
Push strategy is a strategy in which the companies create demand for their product or service using the
promotion
Example: Mobile companies offering huge discount on older version mobiles is a push strategy
11. C(Prosumer)
Prosumer is a customer who is involved in designing and customization of the product based on his/her
needs.
12. A( Firmographic, Culture and Usage)
The fundamental forces that drive the B2B customer needs firmographic forces, Business Culture and
Usage culture.
No of employees, Sales volume, financial situation etc. come under firmographic
 SECTION B
1a) Due to the current Covid-19 pandemic, Tourism and Airlines industries are two of the most hit
sectors of the economy and as many countries announced lockdown Airlines were completely shut in
many countries and are operating only for the transportation of the cargo. The Indian aviation industry
could bear a loss of up to $3.6 billion in the April to September period and also many of the airlines
have sent their employees on compulsory unpaid leave to bear the losses
In this scenario some of my recommendations as CMO of Airlines Company are:
 In the coming few months as foreign returnees need to be quarantined, so our airlines company
will come up with a package for international travelers, where we will have a tie up with some
hotels to provide quarantine facility for our passengers, this gives a huge push to our company as
passengers are not interested in staying in the government provided quarantine or in home
quarantine as they might become carriers of the virus to their family
 As we are expected to have a recession post covid 19, the best way for marketers to retain their
customers is to offer discounts on the services. To get back the people into the habit of travelling
again our airlines will offer our tickets at discounted price, keeping the services at an optimum
level to bear the loss due to the discounted fares.
 There will be huge change in the consumer behavior of airline travelers as they tend to become
more health conscious and there will be increased concern about the hygiene of the plane and
staff. So our company will focus on creating ads where project how staff is maintain hygiene in
the plane and how we value the health of the customers. This will make the passengers
understand how much we care about our customers health and safety.

2a) Me and my friends have started an organic rice business ‘O-Rice’

The core values of our company are as follows:

 Honesty:
We believe in honesty and we pay our farmers on time, we also pay them the correct amount
of money. We also do honest advertising where we never advertise lies about product or any
fake promises in our advertisements.
 Quality:
We believe in providing the best quality of our product to the customers for which we ensure
that the product crosses our various quality parameters
 Integrity :
We believe in the integrity of our employees and stakeholders, we expect them to behave in
a ethical and professional manner to ensure smooth happening in our company.
  Commitment:
Commitment is what we expect from our employees, to provide the best customer
experience and for the progress of our company. We are also committed to give our best
possible product to our customers
 Customer centric
We take the feedback of our customers very seriously and we also take their inputs in the
product development to cater their needs and expectations

2b) Three possible moves from our competitor and our counter to the moves are as follows:
Price War:
If our competitor starts a price war by decreasing price our company O-Rice is ready to face that
situation by increase our promotions , where we project our product attributes to justify ,why our
product is slightly expensive than our competitor
New Technology:
If our competitor comes up with a new technology to increase production, we combat this move by
hiring more land and more number of farmers to increase our production and mean while we will also
work on R&D of that technology
Marketing Promotion:
If our competitor comes up with huge marketing campaign on the television to project how superior rice
they offer
In order to tackle this situation we will come up with campaign where we show the customers our whole
manufacturing process and the hallmark we have on our product and the brand recalling is focused to
keep our brands in the minds of the customers, as ours is a startup we will use more digital marketing
strategies as they are cost effective. We will sell and advertise our products on the online shopping
platforms such as Amazon, Flipkart and Big Basket to increase our brand visibility

3c). Net Market Contribution is calculated to determine whether the company’s marketing strategy is
enough to cover the expenses related to the sales and marketing in a given period of time.
Formula:
Net Marketing Contribution = ((Sales Revenue) * (Gross Profit %)) – (Marketing and Sales Expenses)

Example:
Let us consider Sales Revenue for a product is 10000 and the gross profit margin is of 50% and sales
and marketing expenses be 1500
Then
Net Marketing Contribution = (10000*50%)-1500=3500
For the same product if the sales revenue is decreased to 5000 and the other things remain same
Then
Net Marketing Contribution = (5000*50%)-1500=1000
This means our marketing strategy is not feasible as we have very less net marketing contribution, This
means we need to make changes to our marketing strategy

4c) Customer Perceived Value: It is a value evaluated by the customer, which he perceives to get by
buying a product or service and it is the difference between the total benefits obtained as per customers
perception and the price paid by him.

Customer Perceived Value = Customer perceived benefit – Customer Perceived cost

Customer perceive Benefits include: Service benefit, Image benefit, Personal benefit, Product benefit,

Customer Perceived Cost: Monetary cost, Energy cost, Psychological cost, Time cost
 SECTION C
1. Market Potential is the size of any given market for a particular product at a given time. It is
annually determined in terms of sales volumes. The market potential refers to the upper limits.
To find the market potential, we need to find the following factors
 Maximum number of units
 The unit price
 What percentage of potential customers enter and consume/use the product

The formula to find the market potential is

MP=N*P*Q
Where
 N is the number of possible buyers
 P is the average selling price
 Q is the average annual consumption

For children bike in India, the population is 1.3 billion and out of this 40% suit to our category
i.e. 52 lakh, Assuming 50% can afford this bicycle, then the buying ceiling becomes 50% and
assuming each kid buys a cycle a year, with a 10% rebuy rate , and the average price of the
bicycle being 5000 rupees

Annual marketing potential = Maximum number of units consumed * buying ceiling * purchase
rate*purchase quantity
Annual market potential=52lakh*50%ceiling*1bicycle/kid*5000
Annual market potential=13000 lakhs

2. The six steps in Product Positioning are as follows:

a) Identifying the competitors:
Direct Competitors: Other brand women bicycles like Ladybird, Huffy Savoy and Cosmic colors.
Indirect Competitors: Electric Bikes such as Ather450x, Scooters like Hero pleasure
b) Determining how the Competitors are Perceived and Evaluated
Pricing is the basis on which the competitor is evaluated and availability of spare parts also play a
major role. The distance that an individual cover-using bicycle will be comparatively less.
 c) Determining the competitor’s positions
Competitors like ebike and normal scooty companies will target the customers where the distance
from village to town is comparatively high. In that case the usage of the ebike and scooty will be
more as they are cost effective.
d) Analyzing the Customer
Our customers in the rural areas in order to target the more number of people and make our mission
successful in achieving target the price of the women bicycle should be affordable. Women may use
it for their daily activities like college, general purchases so the price tag should be minimal.

e)Making the positioning Decision

Our target customers should be in age group of 16 to 40 and educated women. We need to position

accordingly

f)Monitoring the position

We should evaluate by initially implementing in one particular area and based on the progress we
can expand our wings.

Most ideal approach to pull in the rural population is to exhibit them straightforwardly about the advantages we
get in utilizing the bike, how it will improve the wellbeing, how it will limit the expenses of diesel and
petroleum. What's more, in the event that the spending grants, at that point promoting in TV would help more
for brand awareness
3.

4. The following are the different product categories

 Utility based (commuting)
 Sports/MTB
 Assisted technology bike(battery operated ) for the elderly
 Kids bikes
 Indoor exercise bike

The key value drivers or product differentiating factors in each of the categories are:

 Utility based (for commuting): Durability and quality of the cycle are the key value
drivers for this category .
 Sports / MTB: Strength of the bicycle is a aimportant factor and also we need to focus on
gears and absorbers of the bicycle to give a good speed to the bicycle.
 Assisted technology bike (battery operated) for the elderly: The key value drivers of these
cycles depends of the connectivity of the Wi-Fi or the Bluetooth technologies enabled
and battery capacity
 .Kid’s bikes: Styling, color and design will drive the value of the kids bikes. And also
affordability of the cycle is considered.
 Indoor exercise bikes: The key value drivers are space of the seat, height adjustment,
folding flexibility etc.
5. Offensive Marketing: The aim of the strategy is to target the weakness of the competitors, they will
focus on the elements will hurt the competitors the most and gives an advantage to them. The
elements in offensive strategy includes Invest to grow, New market Entry and the Improve
positioning
 Invest to grow: This take place when the company is new to the market and want to gain a fair
amount of market share and the market demand.
 Invest to improve the positioning: This includes improving on the existing customer loyalty by
providing the valuable services to the customers. .
 Invest on the new market entry: This will apply when company aims at entering into a new
market, when it is emerging and when they are developing new product.

6. As the market we are entering is new and with high competition, it is better to go for the defensive
strategy as it will secures us from the losses and gain the market share.
 Protect Position: In order to retain the existing customers and market share, company can trade
the older bicycles with the newer bicycles with some additional benefits, So that they can retain
existing customers and the market share of the company.
 Optimize Position: In order to develop the market share and the potion company should come up
with new product development and product innovations, which will help to be superior in the
market and to attract the innovators. Even with less number of models and by doing continuous
events we can engage our customers.
 Manage the Cash flow: By reducing unnecessary marketing expenses and by recycling our own
production waste we can reduce our cash flow and should focus more on the digital marketing
strategies. Focusing more on the improvement of word of mouth we can reduce promotional
expenses.

7. Segmentation will help us in targeting the right set of customer; The following are the segmentations
for our product
a) Geographic Segmentation: Geographic segmentation is dividing the people based on the country,
state, area they live.
In case of bicycle people in rural areas prefer bicycle mostly for its utility and and the urban
population prefer bicycle for sporty and trendy features and more for fitness purpose
b) Demographic Segmentation: Demographic segmentation is based on the age, gender, religion,
nationality.
 Since we want to focus all across the globe markets and especially Europe plays a major role as
people in Europe love to use cycle more than the motor bike and the culture of cycling is very
much important in Europe
c) Psychographic Segmentation: It depends on the lifestyles of the individuals, society, values and
attitude of individuals.

d) Behavioral Segmentation: Purchasing behavior of the customers and based on the buying
behavior we need to segment.

e) Need based Segmentation: Based on the need of the product we need to segment but in case of
bicycle not all the different varieties comes under need based. This need based segmentation will be
applicable for rural areas especially for utility bicycles.
Among all these, the most important segment for our product is Demographic segmentation as it
targets all the set of customers and it is mass segmentation.

8. By using,we can leverage the existing business capability of the company to enter in to the new
market then it can be called as the adjacent marketing process. It is nothing but stepping in to new
business market, which is not the primary business market.

Example: If we consider Noodles adjacent marketing would be pasta, vermicelli, sauces etc.In case
of bicycles, the adjacent market would be ebike, sccoty, e-rickshaws.

The strategic partners for two wheelers would be stores like decathlon as it helps in increasing the
brand awareness and category awareness. Also ecommerce websites like Flipkart, amazon and
cultfit. In addition we can also have tie ups with online reviewers

Also working with some of the well established companies for the knowledge transfer will benift the
company in the product development

9. Distribution plan
a. Machine Sales:
As machine sales are need to be done in more than one medium, Multichannel distribution will
be more suitable for the sale of the machine. As the machine, parts are sold both in-unorganized
space it should be available in multiple channels for the customer availability as the rural reach is
also important for our target segment.
 b. Service support:
Service support can be done by Selective Distribution strategy, it will assist the structure with
controlling over the retailers in a superior manner and the feedback about input can be
appropriately known. service support is very sensitive and we may lose customer trust in the
event that we don't think about explanation, as 60% of customers won't give any criticism and
leave the trust on the brand.
c. Spares Supplies:
In bicycle business spare parts management is particularly significant as the vast majority of the
customers won't go to the vendor for the fixes they will rather way to deal with nearby fix shops
and on the off chance that the accessibility is less, at that point it will influence the
administration as well. So this ought to be done in Intensive distribution strategy.

10. Challenges faced while implementing the marketing strategies are:

a) Lack of Resources:
As in the event of bicycle since we are new in the market and the assets as far as human and
capital will be less and due this despite the fact that the arranging is acceptable it will influence
in the usage stage
b) Strategic Planning:
Time to examine the market and thinking of the new segment is a period accepting procedure as
it new in the market with existing contenders. Little error in methodology will influence a ton of
capital speculation. Along these lines, Targeting the correct segment of clients and situating is
exceptionally significant.
c) Resistance to change:
It might be because of the creative differences inside the workers. Furthermore, not every person
within and even in customers front acknowledges adaption to the new innovation. This will
influence the bicycle business as it is new in the market and the product advancement and
innovation update plays a critical job