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Case 1

The case of M/s Challenger & their Bats

Identification of the Problem:

1. What policy should the company adopt about product differentiation?


2. How can the market be segmented?
3. Other recommendations.

Important points:

Following are the important points in the case:


1. M/s Challenger is a leader in market with respect to selling cricket bats,
with 60% market share.
2. They use best quality wood from Kashmir to produce the bats.
3. They export in 20 different countries which account for 30% of their
total sales.
4. They have 55 models of cricket bats, price ranging from Rs.150 to
Rs.1750.
5. M/s Challenger uses the pictures of the popular cricket stars to promote
the sale of the cricket bats.

Assumptions:

Following are the important assumptions in the case:


1. The company is flexible to change their strategies.
2. The competitors promotional and other strategies remain the same.
3. The political scenario of the different countries remains the same.

Solution/s:

(1) Product Differentiation:

Product Differentiation is the strategic marketing initiative taken by the


company to differentiate its product/s from the competitor’s product.
Products can be differentiated on the following basis:
a. Product Quality, Features & Benefits
b. Product Service
c. Product Channels of Distribution
d. Product Image
e. Product Personnel

a. Product Quality, Features & Benefits:


M/s Challenger can differentiate their product on the basis of the quality,
features and benefits of their bats. For example, they can give more emphasis
on the material used to prepare those bats, viz. best quality wood from the
state of Kashmir.
M/s Challenger can also highlight the unique features of its bat like blade,
thickness, weight, etc.

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) Market Segmentation:

Market segmentation is the process in marketing of dividing a market into


distinct subsets (segments) that behave in the same way or have similar needs.
Because each segment is fairly homogeneous in their needs and attitudes, they
are likely to respond similarly to a given marketing strategy. That is, they are
likely to have similar feelings and ideas about a marketing mix comprised of a
given product or service, sold at a given price, distributed in a certain way and
promoted in a certain way.

The market can be segmented on the basis of:


1. Geographic variables
a. region of the world or country, East, West, South, North, Central,
coastal, hilly, etc.
b. country size: Metropolitan Cities, small cities, towns.
c. Density of Area Urban, Semi-urban, Rural.
d. climate Hot, Cold, Humid, Rainy.

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

(3) Other Recommendations:

Other Recommendations that can be suggested are:


(i) More emphasis on creating a strong brand image.
(ii) Promotional Strategies.

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

Identification of the problem:

1. Marketing Mix strategy for M/s MAC India’s health drink.


2. Market Segmentation Strategy for M/s MAC India’s health drink.

Important Points:

a. M/s MAC India is a 100% subsidiary of a USA based parent company.


b. M/s MAC India wants to launch a health drink for sports people.
c. There is only Parle’s Frooti which is successful; besides the beverage
market size is 720 million litres which includes soft drinks, tea, coffee &
mineral water.
d. M/s MAC India initially intends to process 250 tons which it will extend
to 2000 tons by the 5th year, also if this drink succeeds, then they will
launch Iced Tea.

Assumptions:

a. M/s MAC India has the financial strength and marketing support to
survive in the initial years of operations in India.

Solution/s of the Case:

(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) Market Segmentation Strategy:


Market segmentation is the process in marketing of dividing a market into
distinct subsets (segments) that behave in the same way or have similar needs.
Because each segment is fairly homogeneous in their needs and attitudes, they
are likely to respond similarly to a given marketing strategy. That is, they are
likely to have similar feelings and ideas about a marketing mix comprised of a
given product or service, sold at a given price, distributed in a certain way and
promoted in a certain way.

The market can be segmented on the basis of:


1. Geographic variables
a. region of the world or country, East, West, South, North, Central,
coastal, hilly, etc.
b. country size: Metropolitan Cities, small cities, towns.
c. Density of Area Urban, Semi-urban, Rural.
d. climate Hot, Cold, Humid, Rainy.

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 market for M/s MAC India can be segmented as follows:


i. Age Group (9 to 19).
ii. Age Group (For Senior Citizens).
iii. People who play sports.
iv. People with hectic lifestyles.

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

Identification of the Problem:

1. This company is fully product-oriented.


2. The Marketing Manager has to try and convince the chairman of the
company about the marketing concepts which are purely customer-
oriented.

Important points of the Case:

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

Selling & Co-ordinating Profit through customer


Means
Promoting Market satisfaction
Focus Product Customer Co-ordinating Market

Starting Customer Needs & Target


Factory Market
Point Marketing

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.

Identification of the Problem:

1. Peoples’ growing belief that Sugandha Mouth Fresheners contain


tobacco.
2. Fear of drop of sales of tobacco-based ‘Khusboo’.
3. Product Positioning for Sugandha & Khusboo.
4. Consumer education and awareness building.

Important Points:

1. Sugandha Mouth Fresheners do not contain tobacco.


2. ‘Khushboo’ is an existing brand containing tobacco.
3. Khushboo has 50% market share for the last 5 years.
4. Sugandha Mouth Fresheners is a new brand, recently launched.
Assumptions:

Following are the important assumptions in the case:


1. The company is flexible to change their strategies.
2. The competitors promotional and other strategies remain the same.
3. The political scenario of the country remains the same.

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.

Generally, the product positioning process involves:


a. Defining the market in which the product or brand will compete (who
the relevant buyers are)
b. Identifying the attributes (also called dimensions) that define the
product 'space'
c. Collecting information from a sample of customers about their
perceptions of each product on the relevant attributes
d. Determine each product's share of mind
e. Determine each product's current location in the product space
f. Determine the target market's preferred combination of attributes
(referred to as an ideal vector)
g. Examine the fit between:
i. The position of your product
ii. The position of the ideal vector
h. Position

More generally, there are three types of positioning concepts:


A. Functional positions
a. Solve problems
b. Provide benefits to customers
c. Get favorable perception by investors (stock profile) and lenders
B. Symbolic positions
a. Self-image enhancement
b. Ego identification
c. Belongingness and social meaningfulness
d. Affective fulfilment
C. Experiential positions
a. Provide sensory stimulation
b. Provide cognitive stimulation

Re-positioning involves changing the identity of a product, relative to the


identity of competing products, in the collective minds of 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.

Identification of the problem:

1. To develop marketing strategies, market segmentation, target marketing &


product positioning low price products are a problem.
2. To develop branding strategies.

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:

There are several stages in the new product development process:


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?

C. Concept Development and Testing


a. Develop the marketing and engineering details
b. Who is the target market and who is the decision maker in the
purchasing process?
c. What product features must the product incorporate?
d. What benefits will the product provide?
e. How will consumers react to the product?
f. How will the product be produced most cost effectively?
g. Prove feasibility through virtual computer aided rendering, and
rapid prototyping
h. What will it cost to produce it?
i. test the concept by asking a sample of prospective customers
what they think of the idea

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

E. Beta Testing and Market Testing


a. Produce a physical prototype or mock-up
b. Test the product in typical usage situations
c. Conduct focus group customer interviews or introduce at trade show
d. Make adjustments where necessary
e. Produce an initial run of the product and sell it in a test market area to
determine customer acceptance

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

G. Commercialization (often considered post-NPD)


a. Launch the product
b. Produce and place advertisements and other promotions
c. Fill the distribution pipeline with product
d. Critical path analysis is most useful at this stage

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.

Generally, the product positioning process involves:


a. Defining the market in which the product or brand will compete (who
the relevant buyers are)
b. Identifying the attributes (also called dimensions) that define the
product 'space'
c. Collecting information from a sample of customers about their
perceptions of each product on the relevant attributes
d. Determine each product's share of mind
e. Determine each product's current location in the product space
f. Determine the target market's preferred combination of attributes
(referred to as an ideal vector)
g. Examine the fit between:
h. The position of your product
i. The position of the ideal vector
j. Position

More generally, there are three types of positioning concepts:


A. Functional positions
a. Solve problems
b. Provide benefits to customers
c. Get favorable perception by investors (stock profile) and lenders
B. Symbolic positions
a. Self-image enhancement
b. Ego identification
c. Belongingness and social meaningfulness
d. Affective fulfilment
C. Experiential positions
a. Provide sensory stimulation
b. Provide cognitive stimulation

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.

Identification of the Problem:

1. Comprehensive Marketing Plan for the launch of animal-shaped biscuits


for children

Important Points of the Case:

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.

A marketing plan may be part of an overall business plan. Solid marketing


strategy is the foundation of a well-written marketing plan. While a marketing
plan contains a list of actions, a marketing plan without a sound strategic
foundation is of little use.
The marketing planning process:
a. Corporate mission
b. Corporate vision
c. Objectives for non-profit-making organizations
d. Marketing audit
e. Analysis
f. Marketing objectives
g. Emergent strategy
h. Marketing strategies
i. Detailed plans and programs

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.

Target market is the market segment to which a particular product is


marketed. It is often defined by age, gender, geography, and/or socio-economic
grouping.

Targeting strategy is the selection of the customers you wish to service.


The decisions involved in targeting strategy include:

a. which segments to target


b. how many products to offer
c. which products to offer in which segments
There are three steps to targeting:
a. market segmentation
b. target choice
c. product positioning

Targeting strategy decisions are influenced by:


a. market maturity
b. diversity of buyers' needs and preferences
c. strength of the competition
d. the volume of sales required for profitability

Targeting can be selective (e.g. focus strategy, market specialization strategy


or niche strategy), or extensive (e.g. full coverage, mass marketing, or product
specialization).

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.

Identification of the Problem:

1. How to increase the consumer awareness about this new food


Mushrooms?
2. Suggestions for the distribution channel for the supply of the
Mushrooms.

Important Points of the Case:

1. U & A Foods Pvt. Ltd. is a firm cultivating mushrooms.


2. Mushrooms are the best alternative food to vegetarians.
3. Mushrooms are perishable foods.
4. U & A Foods Pvt. Ltd. do not have enough funds for mass production.
5. Their first batch was purchased by a star hotel, who have also placed a
order of 10 Kilos every day.
6. U & A Foods Pvt. Ltd. want to sell mushrooms in a big way all over India.
7. Their competitors are M/s Shivani Mushrooms, who is equipped with
cold storage facility & is more interested in exports.

Solution/s:

Consumer Awareness:

Consumer Awareness can be created by:


a. Creating Test Marketing through salespersons
b. Point-to-point marketing through salespersons
c. Awareness by outdoor advertising
d. Event Marketing
e. Attractive (preferably transparent) packaging.

Product Life-Cycle:

Products tend to go through five stages:


A. New product development stage
a. very expensive
b. no sales revenue
c. losses

B. Market introduction stage


i. cost high
ii. sales volume low
iii. no/little competition - competitive manufacturers watch for
acceptance/segment growth
iv. losses
v. demand has to be created
vi. customers have to be prompted to try the product

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

E. Decline or Stability stage


i. costs become counter-optimal
ii. sales volume decline or stabilize
iii. prices, profitability diminish
iv. profit becomes more a challenge of production/distribution
efficiency than increased sales

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:

A number of alternate 'channels' of distribution may be available:


a. Selling direct, such as via mail order, Internet and telephone sales
b. Agent, who typically sells direct on behalf of the producer
c. Distributor (also called wholesaler), who sells to retailers
d. Retailer (also called dealer), who sells to end customers
e. Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They


may be just as important for moving a service from producer to consumer in
certain sectors, since both direct and indirect channels may be used. Hotels,
for example, may sell their services (typically rooms) directly or through travel
agents, tour operators, airlines, tourist boards, centralized reservation
systems, etc.

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.

Identification of the Problem:

1. Market Segmentation & target group for Pratima Ltd.


2. Impact on the sale of existing models of Pratima Ltd.
3. Promotion plan after considering the target group.

Important Points of the Case:

1. Pratima Ltd. is a leading company in India with a 75% of the market


share in films and cameras.
2. Pratima Ltd. is marketing 7 models having a price range between
Rs.15,000/- to Rs.60,000/-.
3. The production department is ready to manufacture a new product
WPDC-3. It has the following qualities:
a. WPDC-3 can be used to take 10 snaps.
b. WPDC-3 can be used 12 feet below water surface.
4. TAMTOOM-2 is another product launched one month ago.

Solution/s:

Market Segmentation Strategy:

Market segmentation is the process in marketing of dividing a market into


distinct subsets (segments) that behave in the same way or have similar needs.
Because each segment is fairly homogeneous in their needs and attitudes, they
are likely to respond similarly to a given marketing strategy. That is, they are
likely to have similar feelings and ideas about a marketing mix comprised of a
given product or service, sold at a given price, distributed in a certain way and
promoted in a certain way.

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

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.

Promotion involves disseminating information about a product, product line,


brand, or company.

Promotion is comprised of subcategories:

 Personal selling
 Non-personal selling
 Advertising
 Sales promotion
 Publicity and public relations
 Tradeshows
 Direct selling
 Product placement
 Event Marketing

The specification of these four variables creates a promotional mix or


promotional plan. A promotional mix specifies how much attention to pay to
each of the four subcategories, and how much money to budget for each. A
promotional plan can have a wide range of objectives, including: sales
increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image.

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.

Identification of the Problem:

1. Launch of a new product (Toothpaste)


2. Evolution of a marketing communication strategy for the new brand.
3. Promotional Budget.
Important Points of the Case:

1. Launch of a new product (Toothpaste)


2. Highly crowded Toothpaste market with multiple brands.

Solution/s:

(1) Launching a new product:

There are several stages in the new product development process:

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?

C. Concept Development and Testing


a. Develop the marketing and engineering details
b. Who is the target market and who is the decision maker in the
purchasing process?
c. What product features must the product incorporate?
d. What benefits will the product provide?
e. How will consumers react to the product?
f. How will the product be produced most cost effectively?
g. Prove feasibility through virtual computer aided rendering, and rapid
prototyping
h. What will it cost to produce it?
i. test the concept by asking a sample of prospective customers what they
think of the idea
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

E. Beta Testing and Market Testing


a. Produce a physical prototype or mock-up
b. Test the product in typical usage situations
c. Conduct focus group customer interviews or introduce at trade show
d. Make adjustments where necessary
e. Produce an initial run of the product and sell it in a test market area to
determine customer acceptance

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

G. Commercialization (often considered post-NPD)


a. Launch the product
b. Produce and place advertisements and other promotions
c. Fill the distribution pipeline with product
d. Critical path analysis is most useful at this stage

(2) Product Life-Cycle:

Products tend to go through five stages:

1. New product development stage:


 very expensive
 no sales revenue
 losses

2. Market introduction stage:


 cost high
 sales volume low
 no/little competition - competitive manufacturers watch for
acceptance/segment growth
 losses
 demand has to be created
 customers have to be prompted to try the product

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

5. Decline or Stability stage:


 costs become counter-optimal
 sales volume decline or stabilize
 prices, profitability diminish
 profit becomes more a challenge of production/distribution
efficiency than increased sales

(3) Marketing Communication Strategy:

In practice, the goal of Integrated Marketing Communications is to create and


sustain a single look or message in all elements of a marketing campaign. “It
permits every planned and unplanned communication at every contact point
where the customer or prospect may receive an impression of the company.”
Although integrated marketing communication is more than just the ad
campaign, the bulk of marketing dollars is spent on the creation and
distribution of the advertisements. Advertisers will be called upon to create
images and moments that can cross media boundaries.
The marketing mix is generally accepted as the use and specification of the 4
Ps describing the strategic position of a product in the marketplace.

Although some marketers have added other Ps, such as personnel, typically the
4 Ps, or marketing mix refer to:

 Product:

Although this typically refers to a physical product, it has been expanded to


include services offered by a service organization. The specification of the
product is one of the variables that a marketer has at his/her control. For
example, the product can include certain colours (or not), certain scents (or
not), certain features (or not). Lastly, in the broadest sense when a consumer
purchases a product it also includes the post-sales relationship with the
company. The post-sales relationship can include customer service and any
warranty.

 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:

Place represents the location where a product can be purchased. It is often


referred to as the distribution channel. It can include any physical store as well
as virtual stores on the Internet.

 Promotion:

Promotion represents all of the communications that a marketer may insert


into the marketplace. This can include TV, radio, and print advertising, as well
as coupons, direct mail, billboards, and online advertising. One of the less
well-defined areas in promotion is the role of a human sales force. Are the
messages the sales person provides to a consumer a component of the
promotional mix, or is it part of the product? On the other hand, consumers
may rather purchase the product only when sold through the support of a
known salesperson. In this case, the service, perceived or real can be defined
as a feature of the product.

Conclusion:
By adopting the above mentioned strategies, the company can launch its new
brand successfully.

Case 10
Sales Promotion Strategy for Ice-Cream

Identification of the Problem:

1. Sales Promotion Strategy for Ice-Cream ‘Koool’


2. Advertising Strategy for Ice-Cream ‘Koool’.

Important Points of the Case:

1. Existing Brand of Ice-Cream ‘Koool’.


2. New Sales Promotion and Advertising Strategy for the company.

Solution/s:

Sales Promotion Strategy:

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

Sales promotions can be directed at either the customer, sales staff, or


distribution channel members (such as retailers). Sales promotions targeted at
the consumer are called consumer sales promotions. Sales promotions targeted
at retailers and wholesale are called trade sales promotions. Some sale
promotions, particularly ones with unusual methods, are considered gimmick by
many.

Advertising Strategy:

Advertising is paid communication through medium in which the sponsor is


identified and the message is controlled. Variations include publicity, public
relations, product placement, sponsorship, underwriting, and sales promotion.
Every major medium is used to deliver these messages, including: television,
radio, movies, magazines, newspapers, the Internet, and billboards.
Advertisements can also be seen on the seats of grocery carts, on the walls of
an airport walkway, on the sides of buses, heard in telephone hold messages
and in-store PA systems. Advertisements are usually placed anywhere an
audience can easily and/or frequently access visuals and/or audio, especially
on clothing.

Conclusion:

By adopting the above mentioned strategies, the company can recreate its
brand ‘Koool’ successfully.