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Christ University,Bengaluru
Questions View-II Semester
Subject : MCO205(MARKETING MANAGEMENT)
U1--Introduction
U1-T1-S1--introduction
1 Distinguish clearly between selling and marketing. 5.0 Simple Conceptual
2 What are the five different Marketing management
orientations? Justify each one of them with appropriate
example and state its relevance as of today?
10.0 Complex Descriptive
3 Describe the characteristics of services with suitable
examples.
10.0 Medium Descriptive
4 Comment on the widened marketing concept. To what
extent is it practiced in India?
5.0 Simple Conceptual
5 What is marketing and what is its primary goal? 5.0 Simple Descriptive
6 Explain the reasons for growth of service sector. 5.0 Complex Conceptual
7 What are the various approaches to the study of
marketing? Elaborate.
8 “Defining the problem is the key to marketing research
process” Discuss.
9 “Services marketing is considered as a distinctive area in
the study of marketing”. Discuss with suitable examples.
5.0 Medium Conceptual
10 Comment on the various entities that can be marketed by
marketers.
11 “Customer is the king”. Explain the statement with
reference to the modern concept of marketing:
Needs and Wants1.
Value and Satisfaction2.
Marketing Myopia3.
Shopping Goods4.
10.0 Simple Descriptive
12 Comment on societal marketing concept. Can it be
practiced in India?
13 Bring out the different research approaches followed in
marketing research.
14 "Needs pre-exist in the market” Discuss. 5.0 Complex Conceptual
15 Explain the difference between old and new concepts of
marketing.
16 Differentiate goods and services. 5.0 Simple Conceptual
17 Describe the term “Marketing Myopia” with adequate
examples.
18 Describe the evolution of marketing concepts. 10.0 Simple Descriptive
19 “Marketers can create needs” Do you agree? Give
reasons to support your answer.
20 What is marketing? Discuss the scope of marketing. 5.0 Medium Descriptive
21 Bring out the scope of marketing research. 5.0 Medium Conceptual
22 What are the important aspects to be considered while
designing a questionnaire?
5.0 Complex Conceptual
23 What do you mean by marketing functions and how are
they useful in the process of marketing ?
http://kp.christuniversity.in/KnowledgePro/syllabuseCreation.do?method=...
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24 Differentiate market segment and target market with
illustrations.
25 Comment on how has the internet changed consumers
and marketers?
26 What is a market? What are the types of Market? 5.0 Simple Descriptive
27 “Marketing should aim at meeting a given customer’s
need rather than selling a given product”. Reflect on the
statement and elucidate the benefits of marketing
concept.
28 Discuss the different methods used to contact the
respondents in marketing research.
29 List and explain the core concepts of marketing with help
of example.
30 What is the difference between market niche and market
segment? Describe the market-niche strategy for a car
manufacturing firm. Show the difference between the two
strategies.
31 How does Marketing Intelligence and research system
help in decision making process?
32 Critically examine the scope of marketing in today’s
business scenario.
33 “Internal Records System is a vital component of
Marketing Information System” Substantiate.
34 Discuss the evolution of marketing, highlighting the
factors that caused those shifts.
35 What are the special characteristics of services? 5.0 Medium Descriptive
36 Discuss the nature and scope of marketing. 10.0 Medium Descriptive
37 What are the salient features of Marketing? 5.0 Complex Descriptive
38 Define Needs, Wants and Demands. 5.0 Medium Descriptive
39 Explain Holistic marketing concept and explain its
dimensions.
40 Has marketing changed in the “Connected World”?
Discuss the strategy implications of the internet for
marketing.
41 How has the internet (in particular, the social media)
affected marketing? As a result, what are the new
trends/phenomena that you observe?
42 Explain in detail Maslow’s need hierarchy theory. 5.0 Medium Descriptive
43 How social media has influenced marketing, mention the
latest trends/phenomena that is helpful to marketers in
this technology age?
44 What are Sociological determinants of consumer
behavior?
U2--marketing environment
U2-T1-S1--UNIT II MARKETING ENVIRONMENT AND MARKETING RESEARCH
45 Discuss how companies can react to the marketing
environment.
46 Frame a questionnaire for finding out the demand for
Television.
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47 Comment on the key changes in the political and cultural
environments.
48 What is survey? How is the technique adopted in
marketing?
49 How do suppliers and marketing intermediaries impact
the marketing environment?
50 Discuss the relative importance of cultural environment
affecting the marketing system of the firm.
51 Name and describe the elements of a company's micro
environment and give examples to illustrate it's
importance.
52 "Modern marketing adversely affects the biological
environment". Comment.
53 Marketers should be aware of the purchasing power and
spending patterns of the consumers. Discuss to what
extent these factors affect the marketers.
54 “India’s population is no longer a burden rather it is an
opportunity for the marketers” Explain.
55 Comment on how changes in the demographic and
economic environment affect marketing decisions.
56 Describe the environmental forces that affect the
company's ability to serve its customers.
57 “The customer is not to be treated as one- time purchaser,
but as a person who will patronize the brand for
life-time.” Examine the statement and explain the
importance of CRM in today’s highly competitive
marketing environment.
58 Compare and contrast the reliability of primary and
secondary sources of data.
59 To what extent customers play a vital role as actors in the
micro environment?
60 "Marketing decisions are strongly affected by
developments in the political environment". Explain.
61 What can be the possible effect of changes in the
Government’s fiscal and economic policies on the
marketing environment? Support your answer with
reference to India.
62 Evaluate the importance of marketing research. Is it
gaining importance in India.
63 Explain the process of marketing research. 10.0 Simple Descriptive
64 What are the features of marketing research? What are its
objectives?
65 Outline a market research plan for a restaurant that
wishes to become market driven.
66 Discuss the role of competitors in the marketing
environment.
67 Explain how the general public can affect the marketing
environment.
68 According to you, how should marketers respond to the
changing environment?
69 How do technological changes affect the marketing
environment?
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70 Discuss the factors that have led to the increasing
importance of marketing research in India.
71 Write short notes on the following:
Types of e-markets1.
Relationship selling2.
72 Write short notes on the following:
Cause- Related Marketing1.
e-advertisements2.
73 In what ways does the demographic factors affect the
marketers? Explain with suitable examples.
74 On what grounds do you support and oppose external
research organization?
75 Explain some of the major uses of marketing research. 5.0 Complex Descriptive
76 Write short notes on:
a. Indepth Interview Method
b. Observation Method
77 Discuss the benefits of market segmentation. 5.0 Medium Descriptive
78 Explain some of the major uses of marketing research. 5.0 Complex Descriptive
79 Write down the criteria for market segmentation. 5.0 Simple Descriptive
80 Define marketing research and explain the steps involved
in marketing research process.
81 Explain the advantages of secondary data. 5.0 Medium Descriptive
82 Analyze the external uncontrolled factors which affect
marketing environment.
83 Discuss the contents of a marketing research report. 5.0 Complex Descriptive
84 Discuss the usefulness of qualitative research in
marketing. You may illustrate your answer with examples.
85 Why is it necessary for an MNC to study the marketing
environment in India. Illustrate your answer with
example?
86 Why is it necessary for a marketer to study the marketing
environment? What are the environmental variables to be
taken into consideration?
U3--identifying and selecting the segment
U3-T1-S1--UNIT III IDENTIFYING AND SELECTING MARKET
87 State the different types of subcultures and bring the
distinctiveness of the taste and preferences among each
one of them.
88 Write brief notes on market segmentation, market
targeting and positioning.
89 Bring out the different ways the company can
differentiate services.
90 “Differentiation is the key to survival” substantiate your
answer and also bring out the different ways in which
differentiation can be done.
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91 “A person will tend to buy the brand whose image is
most congruent with his or her self image”. Is a person’s
self image a highly reliable predictor of his or her brand
image? Substantiate your answer.
92 How does culture impact consumer behavior? 5.0 Medium Conceptual
93 Describe the various stages through which the consumer
buying process moves.
94 Discuss the five needs in Maslow’s needs-wants
hierarchy.
95 Why is the term buyer behaviour referred to as the
problem solving behaviour?
96 Explain the different stages in the family life cycle and
also trace the consumption pattern in each of these
stages.
97 Outline the market segmentation procedure with relevant
examples.
98 How can a company gain competitive advantage through
personnel differentiation? Also list the characteristics of
better – trained personnel.
99 How would you segment on the basis of behavioral
variables? Elucidate with an example.
100Write short notes on the following:
Ecology and Marketing1.
Internal Controllable Factors2.
101Explain the Herzberg’s theory in relation to consumer
motivation.
102Bring out the importance of demographic segmentation. 5.0 Medium Conceptual
103Explain the important ways of segmenting consumer
market on the basis of their behaviour.
104What are the procedures used in segmenting the market?
Explain.
105Contrast demographic analysis with psychographic
analysis.
106Write short notes on the parameters required for
effective segmentation.
107How do industrial buyers make their purchase decisions?
Explain with the help of a suitable example.
108Define marketing Management. What are the major
responsibilities of marketing manager?
109Write short notes on the following:
a. Marketing Environment
b. Components of Marketing Environment
110 Discuss how companies identify attractive market
segments and choose a market-targeting strategy.
111 How do Government buyers make their buying
decisions?
112 Product choice is affected by the economic
circumstances of an individual. Discuss.
113 Describe the different types of buying behavior. 10.0 Simple Descriptive
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114 People choose product that matches their lifestyle.
Explain.
115 How should a company choose its positioning platforms? 5.0 Complex Conceptual
116 Compare and contrast consumer and industrial markets. 10.0 Complex Descriptive
117 Explain the five different roles that persons can play in a
buying decision.
118 Bring out the different ways a company can differentiate
its products.
119 Give two examples of goods and services whose market
demand would be particularly affected by each of the
following population factors:
a) Regional distribution b) Marital status, c) Gender, d)
Age e) Urban and Rural distribution
120List and explain the different patterns involved in target
market selection.
121Who participates in the Industrial Buying process? With
a relevant example.
122How would you segment the market for cars? 5.0 Complex Conceptual
123Bring out the different types of reference groups. 5.0 Complex Conceptual
124Explain the process involved in psychographic
segmentation along with example.
125With the help of an example describe customer delivered
value.
126Explain the different patterns of market segmentation
with necessary diagrams.
127Write short notes on Mass marketing and product variety
marketing.
128How do beliefs and attitudes influence buying behavior? 10.0 Medium Descriptive
129List and write brief note on the 7 P’s of marketing. 5.0 Medium Conceptual
130Bring out the different ways through which a company
does image differentiation.
131What are the criteria to be followed in order to bring
about meaningful brand differences?
132What are the various levels at which segmentation can
take place?"
133List the factors that influences consumer behavior? 10.0 Simple Descriptive
134Explain the concept of positioning and re-positioning
with examples
U4--Product Planning and Development
U4-T1-S1--UNIT IV PRODUCT PLANNING AND DEVELOPMENT
135How does the company modify its market when the
product is in the growth stage?
136What are the different categories of new product? 5.0 Simple Conceptual
137Write short notes on product idea, product concept and
product image.
138Why do new products fail? 5.0 Complex Conceptual
139Differentiate style, fashion and fad with the help of life
cycles.
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140Briefly explain the different stages in the adoption
process.
141What is a product? How does money back guarantee,
after sale service and credit improve a total product?
142How does product characteristics influence rate of
adoption of new product?
143What are the different ways in which the marketers try to
modify the product when it is in the growth stage?
144Discuss the marketing strategies followed in growth
stage.
145Bring out the different marketing strategies followed in
the introduction stage.
146Discuss the different ways by which a company stretches
its product line.
147Explain product positioning with examples. 5.0 Medium Descriptive
148Explain the various idea-generating techniques for new
product development.
149How does branding facilitate buyer behaviour? 5.0 Complex Conceptual
150Discuss the various sources from which new product
ideas can come. Give some real time examples.
151Write short notes on brand image and brand equity. 5.0 Medium Conceptual
152Examine the various strategies adopted by the marketers
during the decline stage.
153How does branding play an important role in the
formulation of marketing mix and marketing strategy?
154Briefly explain the terms concept development and
concept testing.
155Discuss the importance of innovation in marketing. 5.0 Complex Conceptual
156Discuss the strategies followed in naming a brand and
also explain the desirable qualities of a brand name.
157Describe the various stages in the new product
development marketing –strategy plan for introducing the
new product in the market.
158Describe the major methods of consumer-goods market
testing.
159Bring out the factors that hinder new product
development.
160Critically examine the need for good packaging and
labeling.
161“Firms trade up during periods of prosperity and trade
down during recessions”. Do you agree? Why?
162How does a company’s advertising strategy differ
according to the Product’s life cycle?
163List define the steps in the new product development
process and the major considerations in managing this
process.
164Discuss the different phases in the maturity stage of
PLC.
165Examine the role of personal influence in the adoption of
new products.
166Explain the various factors to be considered while
commercializing a new product.
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167Discuss the various modifications that can be made on
the marketing-mix elements to improve sale.
168With the help of charts explain how PLC concept can be
used to analyze a product category?
169“People differ in their readiness to try new products”
Explain.
170On what basis the company decides to develop a
commercially feasible product after the product concept
passes the business test ?
171Outline the stages in new product development. 5.0 Complex Descriptive
172Discuss the process of new product planning and
development.
173Explain the stages and strategies involved in a standard
PLC.
174Draw the different forms of Product Life Cycle (PLC)
and discuss how the marketing mix elements vary from
one PLC stage to the other.
175Explain in detail the packaging strategies. 5.0 Simple Descriptive
176"Labelling is another significant means of product
identification". Mention the purpose of labelling.
U5--pricing
U5-T1-S1--UNIT V PRICING
177How do Customers’ react to price changes? 5.0 Medium Conceptual
178"Pricing strategies usually change as the product passes
through its life cycle". Explain with suitable examples.
179Discuss how companies adjust their prices to take into
account different types of customers and situations.
180Discuss the forms of promotional pricing. 10.0 Medium Descriptive
181Write short notes on price adjustment strategies in price
setting.
182Describe the different factors considered for estimating
cost.
183Describe the major strategies for pricing imitative and
new products.
184Describe the various internal and external forces that
influence pricing strategy of a firm.
185List the various objectives companies pursue and explain
how it can be achieved through pricing?
186Why would a marketer of innovative high-tech products
choose market-skimming pricing rather than market-
penetration pricing when launching a new product?
187Illustrate Product-line pricing. 5.0 Complex Conceptual
188Identify the factors that affect buyers’ price sensitivity. 10.0 Complex Descriptive
189Describe the options available with the market leaders
when other firms resort to price changes.
190What are the ways in which competitors’ react to price
changes?
191What are the different forms of geographical pricing?
Explain with suitable examples.
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192Discuss the influence of other marketing-mix elements on
pricing.
193Evaluate the importance of pricing in a marketing
programme. What are the objectives of pricing?
194Explain the following pricing terms a) skimming b)
penetration pricing. Point out the reasons for such pricing
strategies.
195Discuss the situations where product-mix pricing
strategies can be adopted.
196When and how should a company change its price? 10.0 Complex Descriptive
197State how consumers, marketers and society view
pricing.
198Briefly explain the following concepts: Captive product
pricing and Optional product pricing.
199Discuss product bundle pricing and captive product
pricing.
200Retailers often use psychological pricing as a price
adjustment strategy. Explain this pricing strategy. How do
reference prices affect psychological pricing decisions.
201How do psychological pricing influence consumers
purchase decision?
202Explain the following pricing strategies with illustrative
examples
Psychological Pricing1.
Promotional Pricing2.
203State the internal factors that influences the product
pricing decisions.
204How to choose between skimming and penetration
pricing? Explain.
205Explain Event marketing and Franchising. 5.0 Medium Descriptive
U6--Distribution
U6-T1-S1--UNIT VI DISTRIBUTION
206Discuss the functions and services of a wholesaler. 5.0 Simple Conceptual
207Describe the constraints that should be considered by the
manufacturers when they develop channel objectives.
208Explain channel management decisions. 10.0 Medium Descriptive
209What can be the causes of channel conflict? 5.0 Medium Conceptual
210"You can eliminate middlemen but not distribution
activities” discuss.
211 Explain why companies use marketing channels and
discuss the functions these channels perform.
212How does the organization manage channel conflict? 5.0 Medium Conceptual
213Discuss the key functions performed by the members of
the marketing channel.
214Describe selective and exclusive market coverage in
distribution.
215Indicate the relative importance of different channels. 10.0 Medium Descriptive
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216Write short notes on the service output levels that would
be desired by the target customers.
217Write short notes on Horizontal and vertical conflicts
among channel members.
218Discuss the basis of evaluating major channel
alternatives.
219Identify the major channel alternatives open to a
company.
220Discuss the factors governing channel choice. 10.0 Simple Descriptive
221Comment on the role of distribution channels in
marketing.
222Discuss the reasons behind channel conflict, And how to
manage those conflicts?
223Explain the functions and flows in marketing channel. 10.0 Medium Descriptive
224With illustrations from Indian context describe various
distribution channels.
225Compare and contrast push and pull promotion
strategies. What promotion tools are most effective in
each?
U7--promotion
U7-T1-S1--UNIT VII PROMOTION
226Describe the importance of advertising as a
communication tool.
227“CRM enhances customer loyalty” Explain. 5.0 Complex Conceptual
228Critically examine the reasons for customers not
reporting their dissatisfaction.
229List and explain the steps in personal selling process. 5.0 Medium Conceptual
230Discuss the role of a company's sales person in creating
value for customers and building customer relationships.
231State the role and objectives of sales promotion. 5.0 Simple Conceptual
232Write short notes on trade promotions. 5.0 Medium Conceptual
233“Share of Customer” is more important than “Share of
Market” Explain.
234How does promotion stimulate demand? 5.0 Medium Conceptual
235Explain the differences between primary and secondary
data. When is it appropriate to use either of them and
how are they collected?
236How does a marketer determine upon issues of timing,
frequency and duration of promotion?
237Discuss the relevance of integrated marketing
communication in the present marketing scenario.
238Would it be appropriate for a firm to use advertising to
create awareness and at the same time use sales
promotion to stimulate demand? Explain with an
example.
239What does the leaky bucket theory depict? 5.0 Complex Conceptual
240How does customer relationship management (CRM)
help companies develop customer insights and deliver
superior customer value?
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241Explain the process of communication in marketing with
an illustration.
242How does an organization strike a healthy relationship
with its customers?
243Briefly explain the concept of salesmanship. 5.0 Medium Conceptual
244Explain the process of IMC. 10.0 Complex Descriptive
245Bring out the steps to develop advertising programme for
the selected target audience.
246“Customer satisfaction is no longer good enough to
survive in today’s competitive market. What is needed is
customer delight” Examine the statement.
247Write short notes on pull and push strategy in promotion. 5.0 Simple Conceptual
248State the advantages and limitations of personal selling. 5.0 Complex Conceptual
249Discuss “sizing-up” of customers. 5.0 Complex Conceptual
250Critically evaluate the social aspects of promotion.
Should it be controlled by law.
251Enumerate the various steps in Sales force management. 10.0 Medium Descriptive
252Describe the qualities of a successful salesman. 5.0 Complex Conceptual
253Discuss the role of personal selling in the promotion mix.
In what situations is it more effective than advertising?
254Why do companies lose customers? 5.0 Complex Conceptual
255Comment on the AIDAS formula in the sales process. 5.0 Complex Conceptual
256Explain the factors that determine the promotional mix. 10.0 Simple Descriptive
257“Salesmanship is persuasion” comment. 10.0 Medium Descriptive
258Describe the strategies for building a relationship with
the customers.
259Critically examine any three direct selling models. 5.0 Complex Conceptual
260Explain the basic steps in a sales process. 10.0 Simple Descriptive
261Discuss the concept of Customer Relationship
Marketing. Highlight its importance in the globalized
scenario.
262What are the benefits of having loyal customers? Why or
how do those benefits occur?
263Develop a promotional strategy for the following and
explain:
Tata Bolt1.
Apple I pad 102.
Samsung Smart 5000 series.3.
264Discuss the impact of advertising on products and
consumers.
U8--competitors
U8-T1-S1--UNIT VIII COMPETITORS
265What is each competitor seeking in the market place and
what drives each competitor’s behavior?
266Bring out the different ways in which a company might
view its competitors.
267Critically examine the main factors that determine
industry structure with relevance to competition.
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268Bring out the different competitive strategies followed to
attack and avoid competitors.
269Discuss the need to understand competitors as well as
customers through competitor analysis.
270“Competitive advantage is a company’s ability to
perform in one or more ways that competitors cannot or
will not match” Discuss.
271Bring out the roles the competing companies follow to
withstand competition.
272Explain how having strong competitors can benefit a
company.
273Trace the common reaction profiles of competitors. 5.0 Medium Conceptual
274How does a company identify its competitors and their
strategies?
275Describe the steps involved in designing a competitive
intelligence system.
276How does a firm assess its competitors’ strengths and
weaknesses?
U9--marketing strategy planning
U9-T1-S1--UNIT IX MARKETING STRATEGY PLANNING
277Describe the components of a marketing plan. 10.0 Medium Descriptive
278Enumerate the steps in marketing planning. 10.0 Simple Descriptive
279Trace the evolution of modern marketing orientation. 10.0 Simple Descriptive
280Bring out the significance of a product-oriented
organization.
281State and explain the features of marketing audit. 5.0 Medium Conceptual
282State and explain the key elements of market planning. 5.0 Medium Conceptual
283Explain Functional organization with the help of a neat
diagram.
284How important is a mission statement important to a
company?
285Discuss the various levels in planning. 5.0 Simple Conceptual
286Write short notes on strategic business units. 5.0 Simple Conceptual
287Discuss the different kinds of questions that could be
raised in a marketing audit.
288State the objectives of a marketing plan. 5.0 Simple Conceptual
289Explain the BCG matrix. 10.0 Complex Descriptive
290Write short notes on market-oriented organisation. 10.0 Medium Descriptive
291Explain the components of a marketing plan. 5.0 Complex Descriptive
U10--case study
U10-T1-S1--case study
292 YUM RESTAURANTS.
Yum! Restaurant is a major global player in the quick-service restaurant
(QRS) market, and has 36000 restaurants in over 110 countries. The Indian
QRS market is growing at the rate of more than 20 per cent per annum, and
Yum! Restaurant is running its KFC, Pizza Hut and Taco Bell chain of
15.0 Medium Case
Study
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restaurants in India.
Pizza Hut is driving Yum! Its growth India. Pizza Hut has successfully
repositioned itself from a fast food joint to a casual dining restaurant with
an enlarged menu. Its menu has 30 items and 75 food options that diner can
choose from. its casual dining experience is characterized by customers
having of choice of what they want eat, rather than by speed and value-
for-money, which was the cause when it had positioned itself as a fast food
joint. At Pizza Hut outlets, customers enjoy spending half an hour enjoying
a multi course meal and they may spend up to rs.600 on a single meal. Since
the customer is spending a substantial amount of time at the outlet, and is
also spending a relatively large sum of money, ambience and service at
Pizza Hut have been refurbished. Employees have retained in ways of
casual dining. It has also invested to make the decor more imaginative. It
had to work hard to shed the image of a fast food outlet- it had to change
everything from lighting to cutlery and crockery.
KFC first entered India in 1995, but it was forced to retreat due to protests
from Swedeshi groups. It came back in 2004, and has opened a large
number of outlets across the country. It is growing at a fast pace, and is
present in all formats- mall, airport, drive through. More than a million
customers visit these outlets every month, and a customer spends around
rs.100 every time he has a meal at KFC. KFC advertises profusely, and it
reserves 5% of it’s for advertising and other forms of promotion.
KFC’s positioning is slightly ambiguous. Yum is trying to position it between
food sold on stalls in the streets and finding restaurants. It is trying to cater
to the middle segment of the proverbial ‘pyramid’. KFC is trying to straddle
between street food and fine dining restaurants, because it discovered that
when the economy is not doing well, diners visit restaurants less frequently,
but they visit fast service restaurant where they can have meals at
reasonable rates. But when the economy is doing well, they stop eating
from the stalls in the streets, and visit fast service restaurants to have their
meals.
Most fast service restaurants focus on providing large variety of snacks on
their menu, and KFC does the same. But, it is also experimenting- it has
introduced chilled beverages called Krushers in 3 variants of crunchy,
smoothies and sparklers. Customers have liked Krushers and it contributes
almost 10% of its revenue. Like McDonald’s, which is one of its main
competitors, KFC wants to serve customers the whole day. It already caters
to lunch as well as dinner and is the strengthening its snacking portfolio.
The third chain under its portfolio is Taco Bell, which was launched in India
in March, 2010. Taco Bell offers Mexican fast food such as burritos, tacos,
quesadillas and topped nachos. Taco Bell offers food that is a contrast in
texture and flavours, which strikes a chord with the youth who seek
something new. Food at Taco Bell tastes different, and its menu prompts
customers to think beyond traditional snacks like burgers. Taco Bell
specializes in Mexican fast food, and hence it appears to only a limited
number of customers. Hence, Taco Bell will operate only in large cities. Its
products are reasonably priced, and they match those at KFC. Yum! Has
tweaked the taste and prices of the cuisine of Taco Bell based on consumer
feedback. Its menu includes the chain’s trademark crunch wrap and grilled
stuffed burrito. Now, footfalls exceed 2000 customers a day.
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But yum! Are worried-customers doing not spend lavishly at fast-service
food outlets, and therefore the average bill size is low. Yum is trying to
increase average bill size by offering more items on its menu. it has added
more vegetarian snacks on KFC’s menu, and is trying to move pizza hut’s
menu beyond pizza and pastas-in the hope that customers will order more
items if they have longer menus to choose from. Yum! Is increasing the
number of outlets in the cities in which it is present and focused on
increasing footfalls. Opening more stores in the cities in which it is present,
will allow it to leverage the supply chains that it has set up in these cities-
supply chain of food is expensive to set up. It has plans to add more than
1000 new outlets by the year 2015-for successful fast food chains’ revenues
are proportional to number of outlets.
Yum! Will need capital to expand-it takes around Rs 2.5crore to open a
KFC store, and around Rs 1.7crore to open a pizza hut equipment are more
expensive, and space for sitting has to be provided. All Yum outlets are
earning profits. It is important to remember that in fast food business, outlet
profit is relatively easier to achieve, but chain’s profits are delayed due to
heavy investments in supply chain.
Yum! Is doing well, but it has seen turbulent times. KFC had to retreat
because some Swadeshi groups protested against it establishing base in
India. Pizza hut was perceived to be too expensive, and hence customers
did not patronize it in the initial years. With Taco Bell, the company is
judging consumer reactions to the Mexican platter. The organized quick-
service restaurant market is still nascent in India; more players will expand
the market in malls and high streets. However, specialized chains may not
be competing directly with McDonald’s, because of a difference in the scale
of operations, and also because McDonald’s pricing is very different from
that of Yum!’s restaurants.
Questions
Do the three chains of yum! Restaurant serves three different
segments? Can these three different segments be clearly defined?
1.
Should Yum! Restaurant goes the McDonald’s way-designing
products to suit the Indian palate and pricing low to serve Indian
pockets? Or should it retain the distinctive taste of its products.
2.
293 THE INDIAN MAN.
The Indian man has transformed. His mindset and behavior have changed,
and so have his play and priorities. The result is that many categories of
products and services that have looked at men seriously as target groups,
have started showing interest in them. Many categories like personal
grooming, premium apparel, luxury cars and even ready-to-cook food are
discovering the new Indian man as a new target customer. Advertisers and
marketers are also finding newer and fresher ways of connecting with him.
The Indian man’s transformation is evident from the change in the
Bollywood archetype-the oily-haired hero with a prominent belly has
metamorphosed into the chisel bodied hero with toned looks and cropped
hair. And it is not that the Indian man has changed only his appearance-his
whole persona has changed. The Indian man has steeled himself to face
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new circumstances-the Indian man has had to fend for himself during
economic hardships, and has been facing pressures to upgrade his lifestyle.
Also, he has had to contend with women at his workplace-a completely new
phenomenon for him. New circumstances of existence have sharpened his
ambition-he may have a wife at home who may be earning more than him,
and he may have a lady boss in office. He no longer feels secure of his
superiority.
The new hero is opportunistic –he is no longer angry, and is not content
venting out of his frustrations. He doesn’t blame the system for his
plight-he uses the system to get ahead. He does not believe that he has any
role in changing the system-That might be somebody else’s job. He wants to
achieve his goals, and doesn’t allow the system to become impediment –he
works around the system. The new Indian man is not an idealist- but he is
clever. He is not worried about the society and will do anything to protect
his interests.
The new Indian man wants to be successful-no longer is he content doing
his ’karma’. He doesn’t let success elude him-no losing hero business for
him. And such a success-obsessive personality reflects in advertisements of
masculine brands like signature whisky and Honda cars. But, he is not
allowing work, and he is fond of playing roles other than that of an
executive and entrepreneur. The new-age Indian man realises that after
working the whole week, the weekend should be spent with family. He
understands that he may have to sacrifice his ‘life ‘to get success, but he is
attempting to hold on his ‘life’. And he is not shy of celebrating and
flaunting his success- big cars, large homes, lavish parties, luxurious
holidays. If he can afford something, he might as well have it. BMW and
Audi have registered India as one of the fastest growing markets for their
cars.
The new Indian man wants to look good and is obsessed about fitness. He
has to be presentable at all times, whatever the cost. Chiseled bodies are a
must, and so are designer suits worn casually over them – the thought
–about, planned carelessness defines the look of the new Indian man.
Indian men are spending more time in front of the mirror than their female
counterparts and they are not apologetic about it.Men with waxed chests
and sculpted bodied are everywhere – in films and advertisements, on the
streets and in clubs. There is a huge market for products and services that
will make the Indian man look good. Emami’s Fair & Handsome fairness
cream for men is successful, which will motivate other companies to
manufacture beauty products ‘only for men’. Garnier has launched Garnier
MEN, a new range of products designed specifically for men, and India is
the first country in which this product was launched.
The role of women in the life of the Indian man has changed. Indian men
have always wanted wives that were dutiful, loving and understanding.
Indian wives were expected to be extremely devoted to their husbands, and
were expected to fulfill their responsibilities. But now, the Indian man,
without making any fuss, shares the chores at home with his wife. He will
get his children ready for school, and will boast about it in office. He is
allowing his wife to play a significant role in areas such as household
investments, car purchase and other decisions in which he unilaterally look
decisions earlier. And his new avatar as a ‘caring and cooperating’ husband
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is being depicted in advertisements – in an advertisement of Kellogg’s
special K, the husband acts as a spokesman for his wife, describing how she
has lost weight since she started using special K. similarly, in an
advertisement of future general life insurance, the husband gifts his wife a
life insurance policy as a token of good omen for a happy life.
As the head of the family, the Indian man was isolated in the family-he was
feared. No more, as a father, he is one of the boys-and most of the time the
kids love him more than they love the mother. He is often in the kitchen
now preparing delicacies for the kids-sometimes for the wife too. He is
buying grociers for the family, and stationary for the kids. The Indian man
will be the target market for FMGC products and will feature prominently
in their advertisements
Therefore the new Indian man has arrived focused on his goals an achiever,
manipulative, charming, witty, a lovable father and accommodating
husband. When companies make marketing strategies of their products and
services they will have to be mindful of the sensibilities of the new Indian
man the Indian man is opening up whole new marketers of all shades and
hues.
Questions
1) Much is being made about the Indian man taking care to dress and groom
himself. Has he really changed or is it just that he obviously cannot be
sloppily dressed and unkempt when the ladies around him are so
meticulously turned out? Will he fall back on his sloppy ways when he is an
all-male company?
2) Does he enjoy being in kitchen or is he there because he will otherwise
remain hungry – his wife is on a tour or just refuses to cook?
3) Do marketers know enough about this new man to be able to design
products and communications specifically for him?
4) When everybody and everything has changed has changed – what is this
fuss about Indian men changing?
294Shri Ram Consultants have been appointed by a leading group in Hotel
industry to prepare a feasibility report for opening a five-star hotel in Pune.
The group has been the most successful one in the Hotel industry and had
always kept its eyes open of new opportunities. In view of the very fast
industrial growth in the city ofPune, the city had attracted the attention of
the group. Pune, apart from being a modern city, had the added advantage
of pleasant weather and several places of tourist attraction in the
neighbourhood. Moreover, the closeness to Mumbai, city of international
stature made it very easily accessible to international tourists.
For Shri Ram Consultants, this was the first time that an assignment
concerning hotel industry had been received. They however, soon realized
that the assignment was not as simple as it appeared to be in the first place.
The feasibility of such a hotel would depend essentially on two factors.
Businessmen visiting the city for work would constitute on segment of the
market, while tourists would constitute the other. Further, the tourists could
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be Indians or foreigners. The success of such a hotel would also depend
upon the relative attraction of other tourist centres in the vicinity.
Further, it was necessary to estimate seasonal fluctuations in demand for
hotel accommodation so that attractive discounts could be offered during
the off-season for business conferences, executive development
programmes, etc.
The consultants realized that they would have to undertake a market
research on a national scale to assess the tourist potential of the city. They
would also have to survey the foreign tourists to estimate on of the most
important segments of the market.
The consultants wondered whether such a survey will have to extend over a
period of one full year to completely take into account the seasonal
variations in tourist traffic. They were also undecided about the manner in
which the survey should be conducted. The company also feared that in the
absence of an accurate definition of the problem, they may land up
surveying the complete tourist market inIndiarather than studying feasibility
of a hotel in Pune. They had heard that ITDC had appointed lady
interviewers at several major airports for conducting such surveys and
wondered if such a methodology could be of use to them.
The problem appeared much defined and they were concerned as the
preliminary report explaining methodology of the research and the
questionnaires to be used had to be submitted to the client along with the
estimate of expenses within one month.
Questions
1 How would you define the problem of assessing the feasibility of the
Hotel so as to help design the survey?
2. How would you plan a survey for actually collecting information on
expected demand for hotel space?
295 BARISTA LAVAZZA.
Barista Lavazza – owned 100% by Lavazza of Italy – has created a new
position in the market place. The coffee chain has decided to test the
market for food, though the core brand promise remains coffee and related
products. The reason is that the coffee chain market in the country is
limited, but the food market is limitless. To ensure that the brand does not
lose its core properties, a true Italian coffee experience remains the core
promise of Barista Lavazza. But the food market is too lucrative to resist.
Non coffee products like tea, sparkles, chocolates, and smoothies account
for all most 1/5th of Barista’s sales. Due to its foray into food, this %
contribution will increase.
The foray could provide Barrista a differentiator in the market place against
the competitors such as Cafe Coffe Day, Costa Coffee, Gloria Jean’s and
Coffee Bean and Tea Leaves. At present, Cafe Coffee Day is the leading
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coffee chain with over 750 stores, barista coffee company is the second and
Costa Coffee third. CCD has 6 formats as compared to Barista’s two and
Costa Coffee is good in the aspiration value it lends.
Barista has Espresso bars and lounge format crème cafes with an elaborate
food menu. Crème cafes open for longer hours than the Espresso bars and
spread over 1600 sq ft. The investment in crème cafe is higher, around RS
1600 / sq ft than in an espresso bar which requires about 100 / sq ft to set
up .Like the espresso bars, the crème cafes cut about 100 bills daily and
175 bills on weekends. The average bill size in a Crème Coffee is RS 300,
about 60% more than the 190 RS in an Espresso bar. About 40% of the sale
is food. The cafes are been open in select high income areas which can
support such a store.
Barista sensed growth opportunity on the high ways. It has opened several
eateries along high ways, competing with local dhabas. Some eateries have
been opened along the Delhi - Karnal - Chandigarh Shimla highway,
Bangalore Mysore highway, Delhi with Agra and Jaipur and Mumbai with
Pune, Ahmadabad and Goa highways.
Along these highways, for instance, the one along the Delhi Shimala route,
dhabas sell paratha , dal makhani, tandooori roti and lassi. Barista’s
eateries sell the same menu. Travellers get more choice. There are several
high ways where there is sufficient movement of travellers who could stop
at barista store. Barista has opened its cafes on both side of the high
way.The key challenge for Barista was to get the branding and visibility of
the stores right so that travellers did not miss it while cruising at high speed
on the highway.
The rent on the highway is just 5 to 7 percent sales, compared to 20 % in
cities, while the number of bills is almost the same in the cities, and high
way stores run round the clock. The average bill size is RS 275, way above
the average for Espresso bars and close to that of the Crème Cafes. The
store is bigger, about 2000 sq ft, because large toilets need to be provided
for the highway travellers. Barista Lavazza has also begun to experiment
with its menu. For instance, it has introduced filter coffee in steel tumblers.
Recent brand extensions also included ice cream and chocolates at select
outlets. A highway store is a good business roads have improved and Indian
families have begun to travel more. The orders are meal- oriented and are
hence bigger in size. But barista needs to concentrate on its backend
operations and supply chain management, as this business is different from
its existing one. Barista needs to make investments as customers expect
consistency from a large retail chain across all its stores. Every parathas will
have to be of same quality. There is also a certain level of risk involved in
leveraging existing brands for a new business. Perhaps Barista could have
invested in creating another brand for its food business.
Barista keeps an account of store – wise profit and loss account. Each store
has to break on an MCM- basis (manager controllable margin) in the 1st
month, EBT- basis (earnings before tax) between 12 and 15 months, and
also has a payback period between 24 and 36 months. This model is broadly
followed across the chain. Some stores could be kept for strategic branding
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reasons. Though they do not hit the EBT break even in the 1st year. These
would be exceptions and have been looked at in this manner from the first
day itself. Barista does not advertise in the popular media, though it does in
– store promotions now and then. This is a huge cost saving which helps in
early break even .large chains in the food category generally spend up to 12
or 13 % of their sales turnover in advertising.
The chain has initiated a new real estate strategy to save costs. Rent have
been renegotiated down by 35-40% at several sites. The company plans to
open several new stores, keeping its identity intact. However, Barista does
not plan to open stores in malls, as most across the country are a losing
proposition. An atrium is a better option as the investment required to get
started is low and visibility is high. If business does not take off, the exit is
easy.
Questions
Barista faces the risk of being labelled a ‘fact food chain’, which does
not have the same sophistication in connotations that a ‘coffee chain’
has. Is it too much risk?
1.
Barista wants to be ‘on the highways’ and ‘on the high streets’. How
does barista straddle the two ends of the market?
2.
Should barista operate both store formats under the same brand
name, and in the same retail space?
3.
296It looked as if a miracle had happened. The Charminar Coffee House was
there at same place, opposite the Deccan Gymkhana bus stand, one of the
busiest places of the town from where it has been operating for the last 12
years. However, unlike the morose outlook it used to offer with hardly
25-30 customers at a time, it is now bustling with 125 – 135 customers at
any time of the day. These comprise college students, family groups and
people from almost all walks of life. And the reason is that the place has
been bought over by a young entrepreneur and is thus under new
management.
Ironically enough Charminar Coffee House was started by one Mr. Seth
who has considerable experience in running restaurants. He has five more
restaurants running in the town and all of these are doing fairly good
business. One of these also offers lodging facilities. Surprisingly, Charminar
Coffee House could never do well. Neither was any systematic effort ever
made to improve its working. So when he got this lucrative offer from Mr.
Raj Kumar Jain, some four years ago, he jumped at it.
It is quite strange to note that Jain has no previous experience in this field.
While he was in the Indian Army and retired at the rank of a Major, none of
his family members have any experience in the catering line, though, his
community is famous for the same. Mr. Jain completely renovated the place
with attractive interior décor. The menu offered was also trebled, thereby
giving a wide choice to customers. Even though it was kept a vegetarian
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restaurant, southIndia, Gujarati and Punjabi delicacies were also offered.
Arrangements for entertainment through stereophonic music systems were
also added.
The success has baffled Mr.Jain himself. So much so that, he even stopped
borrowing from the banks for his working capital requirements within six
months of starting the operation. Today, Charminar Coffee House is the talk
of the town.
Questions
1. Discuss the various reasons as to why the restaurant could not function
well under the earlier management.
2. Discuss the strategies which are used by Charminar Coffee House.
297The product Coco-Cola that has given the world its best known taste was
born in Atlanta, Georgia on May 8, 1886. Coca plant and kola nut were the
main ingredients of the drink. Initially, the drink was positioned as a
medicine to cure headache and depression. Coca-cola’s success came from
advertising which made it an emblem of good things inAmerica. The themes
of all the ads for the drink have remained more or less constant since the
early days i.e, “Drink Coca-Cola, Delicious and Refreshing” to “Always the
real thing”. Coca-Cola is now available in about 200 countries. The
turnover is $18 billion which is less than Pepsi Co’s turnover. The reason
being Pepsi Co has diversified into fast food and snacks businesses, but
Coca-cola remained focused on its core area of business. The market value
of the company is 8 times greater than that of Pepsi. After leavingIndiain
the year 1977, coca-Cola relaunched its drink in the subcontinent in 1993
by taking over the Rs 150 crores Parle Company. The company took over
all the brands of Parle including Thums-Up.
Coca-Cola has been a subdued player with sub-standard marketing and
expenditure being another hurdle. There has been a drop in sales of all the
brands of the Coca-Cola Company. This could be because of Coca-Cola’s
neglect of its Indian brands especially Thums-Up which was the strongest
player in the Indian market. Out of the total expenditure of Rs 27 crores,
81% was spent on coca-Cola and only 19% was spent on Thums-Up. Now
Coca-cola has earmarked Rs 40 crores to promote its products. Coca-cola
was the first in the country to launch cans, plastic cap leak proof bottles and
also full length delivery crates.
Coca-cola has also diffused its strategy between its own and the acquired
brands. All the bottles of coke franchisees as compare to Pepsi’s whose half
the bottlers are self-owned. Coca-cola was airing Creative Artistes agency
ads till 1995 which were looked on with interest by the young urban
consumers but the older lot seemed dazed. In February 1995, the
advertising changed with Sushmita Sen as the model and at the end of it no
one seemed to be sure of what Coke really wanted to say to do. It has not
said anything about being the real thing that is the positioning it wants to
adopt, whereas the competitors like Pepsi are very clear about their
positioning as the choice of the new generation.
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Coke has been an erratic marketer, the print campaigns are more often than
product launch announcements and promises and when they happen, are
too poorly publicized. Today the company is in a peculiar situation with
competing brands in its portfolio. The company has now decided that
applying international strategies will not work here; one has to localize its
venture like Pepsi has done. The company must beef up the existing brands
or do away with them. Coke has been the longest surviving sponsor of the
Olympics.
Questions
1. How should Coke position itself to take on Pepsi in thisBattleof the
Giants?
2. How would you differentiate Coke’s promotional strategy from that of
Pepsi?
3. List the attributes that you consider relevant to this product class. Even
though most attributes in the products are the same, suggest an attribute
that can be considered a USP or can be used to differentiate among the
brands.
298 DALDA.
Dalda has been repositioned. It is now positioned as an edible oil rather
than vanaspati. The re-branding includes a new logo design. The
decades-old palm tree logo on a yellow backdrop has been replaced by a
mother and child symbol which connotes the purity and caring nature of
brand, along with a golden border which signifies premium value and a seal
of protection. The fond style for Dalda has been made more contemporary.
It has been positioned as the ‘husband’s choice’. And , it is been offered
with more vitamins to make the oil better.
Though Dalda has been doing well since bunge India acquired the brand
from Hindustan lever 2003, Dalda still had a strong association with
vanaspati or hydrogenated vegetable oils. In the present scenario, vanaspati
is perceived as unhealthy, and thus not preferred. For the future growth of
the brand, it was essential to move its sticky association with vanaspati.
Research reveals that housewives are concerned about the health of their
husbands. They feel that their husbands are over worked, stressed and often
eat outside. The husbands want to eat tasty food and healthier alternatives
are perceived as less tasty. The housewives feel the need to cook in healthy
oil, but also want their food to be tasty. Consumers perceive that they are
compromising on taste if they use edible oil for cooking. The upgraded
product offering addresses these concerns and thus, Dalda is positioned as
the ‘husband’s choice’. ”Husband’s choice’ conveys to the housewife that
while Dalda oil is healthy, it will also help her provide tasty food for her
husband. It is an attempt to connect better with the younger generation.
Television commercials, radio ads and retail activation exercises were done
to reinforce the repositioning.
All edible oil brands are focusing on the health platform. Dalda is doing the
same, but with difference-stands with health without compromising on
taste. It is a big departure from its earlier positioning when Dalda was
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synonymous with ‘vanaspati ghee’, and when ‘health’ had not become a
part of everyday lingo. The new product supposedly contains vitamins A, D
and E and higher level of anti-oxidants.it has also launched Soya bean,
mustard, groundnut and sunflower oils under the same brand name. It has
an active website www.daldaindia.com, where it gives information about
human health.
It still might be difficult to change embedded perceptions of consumers
about Dalda as vanaspati. With a legacy as strong as Dalda’s, it is very
difficult to compete on the ‘health’ element, especially so when the
category is ruled by pioneers like Saffola, which has a legacy of variants
vouching for heart benefits and less sodium.
Bunge India has also introduced blended edible oils in a range of affordably
priced packets. It is making Dalda more accessible to consumers. Edible oil
is a key ingredient in cooking, and in small towns and cities, it is sold in
loose form by local vendors who pour the oil into containers carried by their
customers. This allows people to buy edible oil in affordable quantities.
However, edible is dispensed in this manner be adulterated, and consumers
may not always receive the desired amount. From the perspective of
retailers, the new Dalda packs are easy to display and store readily visible
to consumers.
Questions
1. Dalda has been poor man’s desi ghee. Would it not have been better if it
had repositioned itself as desi ghee?
2. The market of ‘healthy edible oil’ is already cluttered. In fact,
manufacturer of edible oil positions himself on health plank. Could Dalda
have position on a different plank? What could it have been?
3. Dalda has become a generic name. Can customers ever perceive it
differently?
299 MAHINDRA AND MAHINDRA SCOOTERS.
India is the second largest market for two wheelers in the world, next only
to China. The two wheeler market includes motor cycles, scooters, mopeds
and electric two wheelers. In the last few years, Mahindra and Mahindra
has evolved from being a manufacturer of tractors to being a manufacturer
of commercial vehicles and passenger cars. Two wheeler is the only gap in
the portfolio and if unplugged, Mahindra and Mahindra could straddle the
entire spectrum of automobiles.
Its foray into the two wheeler market could be risky- the market for two
wheelers is different for utility vehicles. Motorcycles comprise over 80% of
the market. The competition is cutthroat, and it would not be easy to gain
market share from established players like Honda, Hero Honda, Bajaj Auto
and TVS. But, it has its own competitive advantages- Mahindra and
Mahindra is a trusted brand. It has strong brand equity in rural markets,
which contributes 40% to two wheeler sales. It has a wide distribution
network in place. It has done a successful transition from tractors and
commercial vehicles to cars, though these markets have nothing in
common. The Scorpio is the largest- selling sports utility vehicle in the
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country.
Mahindra and Mahindra undertook extensive research, surveying 7500
respondents across the country to check if its foray into the two wheeler
market made sense. Most of them said that the company had the credentials
to roll out its two wheeler plans.
It first launched a range of gearless scooters. Stylish and fuel efficient,
motorcycles had almost killed the market for scooters. The market leader
Bajaj Auto had decided to stop manufacturing scooters. But, the scooters
market has recovered- scooters now offer mileage that is not very different
from motorcycles, and scooters require less maintenance than motorcycles.
Honda leads the scooter market with a share of 53%, followed by TVS with
a market share of 21%, Hero Honda with a market share of 14% and Suzuki
with a market share of 8%. Mahindra and Mahindra’s market share is about
2%.
The incumbents have cemented their position by differentiating their
products. Honda boasts of superior mileage and style. Hero Honda
positions itself as the scooter for women with a campaign that features
Priyanka Chopra. TVS has similar positioning with Sania Mirza as its brand
ambassador. Suzuki has projected itself as product for the whole family.
But, there aren’t too many models yet, which means that the market can be
grown by launching new models, as motorcycle companies have done in the
last two decades.
Mahindra and Mahindra has positioned its portfolio of three scooters- Duro,
Rodeo and Flyte- as power scooters. Its positioning is in sync with the
Mahindra and Mahindra’s overall brand position of being ‘Tough and
Rugged’. The company wants to build on the stereotypical macho image of
its sports utility vehicles- The Scorpio and Xylo- that its competitors cannot
claim. Each of the three scooters have been equipped with an 8-hp 125cc
engine, which is more powerful than the 100cc scooters of the competitors.
The Suzuki Access is the only other scooter in the market that has a 125cc
engine.
Mahindra and Mahindra has priced its scooters between Rs. 38300 and Rs
41300. Though priced in the same range as the Hero Honda Pleasure and
TVS Scooty Pep, these are five to six percent than market leader Honda
Activa, despite an engine that is 12 to 18% larger. These are also 8-12%
cheaper than Suzuki Access. The pricing strategy may resemble that for
Scorpio- low inaugural prices that can be increased once the brand is well
established in the marketplace. But the company insists that the pricing is
strategic, and that no changes will be required.
People doubt if scooters can be successfully positioned as power scooters.
The scooter market is predominantly a market for the family and women
riders. Scooters are purely utility products, not lifestyle accessories-
customers do not show off their scooters. Therefore, a showy and powerful
product like Kinetic Blaze, which has a 165cc engine and was positioned
along similar lines had to be withdrawn. Therefore, whether the market
would really shift beyond utility and move towards style and power will
really decide the fate of Mahindra and Mahindra scooters.
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Mahindra and Mahindra uses advertising, and social media such as
YouTube to inform customers about its scooters. It has more than 300
dealers selling its scooters, of which nearly one fifth are dealers of Kinetic
Scooters. M & M also has around 120 new and existing four wheeler
dealers, including those selling tractors. It could open up the opportunities
to upsell and downsell. For example, a logan customer could buy a scooter
for his college going son.
The fact that M&M has acquired the assets of Kinetic motors helped it in its
endeavour to enter the two wheeler market. Kinetic already had a 125cc
scooter- Flyte, which gave M&M a ready power scooter to launch. It
tweaked the product by giving it a new look and feel, before launching it in
the market. M&M acquired 4 scooter brands from Kinetic- the Flyte, Nova,
Kine and 4S, but it found the Flyte to be the best in technology, design and
customer feedback. Nova, Kine and 4S are still being sold. Kinetic had
collaborations with SYM, a Taiwanese automobile manufacturer that has
helped it to launch Flyte. SYM gave valuable inputs in the development of
the Duro and Rodeo. M&M also drew on the experts of engines
engineering, the Italian automobile design and Technology Company that
worked on brands such as Ducati and Honda.
Questions
It is widely assumed that motorcycle killed the scooter market. Is it
too simplistic an assumption? Where are the families who rode so
proudly on ‘Hamara Bajaj’? Could Bajaj Auto have saved the scooter
market? Did it give in too easily?
1.
Mahindra and Mahindra launched scooters instead of motorcycles as
its first two wheeler products?
2.
Who should M&M compete with- Motorcycle manufacturers or
scooter manufacturers? What should its scooters match- scooters of
other manufacturers or motorcycles?
3.
What can M&M do to help develop the scooter market?4.
300In the fall of 1998, Chrysler and Mercedes – Benz merged. Forming
Daimler – Chrysler AG. Daimler – Chrysler is the world’s third largest car
maker in sales and world’s fifth largest car maker in the number of cars
sold. Daimler-Benz, best known for making luxury sedans, also makes
commercial vehicles, sport utility vehicles, and aerospace products. Today
Mercedes – BenzUSAis a wholly owned subsidiary of Daimler – Chrysler.
Mercedes-Benz cars, which are manufactured inGermany, were first sold in
theUnited Statesin the 1950s. Mercedes – Benz’s strategy in theUnited
Stateshas always been to market premium automobiles. During the 1970s
and 1980s Mercedes-Benz engineers built the best cars they could. They set
a premium price tag in the products and for years that was how prices of
cars in the United Sates were established.
When Japanese automobiles Lexus and infiniti were introduced into
theU.S.market, Mercedes-Benz found itself facing increased competition.
Lexus and Infiniti, along with a resurgent BMW, elected to compete with
Mercedes-Benz by offering comparable quality, at lower prices. These
marketing strategies had an impact on Mercedes-Benz business. To combat
the increased competition, dealers in theUnited Statesbecame focused on
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marketing efforts that would maximize customer satisfaction.
Mercedes-Benz’sU.S.strategy for customer satisfaction is based on what it
calls a customer value triad. The customer value triad consists of: 1)
perceived goods quality 2) service quality 3) value-based prices.
Questions:
1. Based on the information provided in the case, evaluate Mercedes-
Benz’s internal strengths and weaknesses and external opportunities and
threats when the Lexus and Infiniti automobiles were introduced.
2. What role customer expectations have in a customer’s satisfaction with a
Mercedes – Benz automobile? How might a company like Mercedes – Benz
plan each element of the Customer Value Triad, so that each would help the
company to exceed customer expectation?
3. What is the relationship between price and value in the purchase of
Mercedes-Benz?
301Sony started as a radio repair shop, founded by Masuru Ikura and Akio
Morita after the World War II. The company began its long history of
producing compact consumer electronics in1957, when it introduced the
world’s first pocket – sized all-transistor radio. The company’s name, Sony
was taken from Sonus; the Latin word for “Sound” Sony went on to invent
a series of transistor-based TVs and increasingly smaller audiocassette
recorders. In 1979, the Sony walkman introduced the world to anew,
portable way of listening to music. Sony became a world leader in consumer
electronics and was the first Japanese company to have its shares on the
New York Stock Exchange.
In the late 1980s, Sony began expanding into media, purchasing a U.S.
record company (CBS Records for $22 billion in 1988) and a major
Hollywood studio (Columbia Pictures for $4.9 billion in 1989). The
purchase made Sony a major force in the entertainment industry.
The importance of marketing at Sony started with Akio Morito, who said
that for a company to be successful, it must have three kinds of creativity:
creativity to make inventions, creativity in product planning and production
and creativity in marketing.
Creativity in marketing at Sony means not just clever ads, but deep insights
into its customers. For eg, Sony knows its PlayStation customers like to find
clues and to decode things. So Sony’s ads for PlayStation 2, feature a young
man walking the streets of a city where he encounters various signs
foreshadowing the events. Mannequins appear in a store window, arm
outstretched and point enigmatically to something that’s about to happen.
“The lead character is almost in the midst of its own role-playing game. He
needs to follow clues to save the heroine”, said Andrew House, Sony’s
executive vice president of marketing. In the ads, “we were essentially
trying to tap into a range of emotions that we think we deliver in the games
– intrigue, foreboding, excitement, panic, relief and achievement in the
end”
Sony’s marketing also includes careful measurement of each campaign’s
effectiveness. For eg Sony runs a 30-second commercial for its PlayStation
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as part of the previews in more than 1,800 theatres and on 8000 movies
screens. The ads appear before such films as “The Cat in the Hat”. Sony
Computer Entertainment America has been running movie ads for six years.
“Cinema advertising has been very effective for us” said Ami Blaire,
director of product marketing. “The reason why we have committed to
cinema every year is the tremendous unaided recall shown by our own
research and communicus commissioned ad tracking”
Another example of measurement is Sony’s’ Gen Y Youth marketing
efforts. “The online program promoting the NetMD, ATRAC CD walkman
and Cybershot U30 ran July 1 through Sept 30, 2003, and we found that
more than 70% of the click throughs were spurred by rich media ads versus
static banners” Said Serge Del Grosso, Director of Media and Internet
Strategy, Sony Electronics.
In Fact, Sony has even developed a direct-marketing solution which it sells
to other companies who want to measure marketing effectiveness. The
product, called eBridge™ allows marketers to use video, measure the
effectiveness of the campaign, and gain insight into the target audience, all
in one package.
Sony expects the next big breakthrough will not come from a single new
electronic device. Rather, Sony president Kunitake Ando says that the
future lies in making a whole range of devices more useful by linking them
in a networked home-entertainment system. The company believes that its
clout in consumer electronics, combined with its media content, will allow it
to steer that convergence in a way that suits it. Whether the future of
convergence resides in TVs or PCs or devices, $62 billion Sony makes
every one of them – with a strong brand name that gives them an extra push
off retail shelves around the world.
Questions
1. What have been the key success factors for Sony?
2. Where is Sony vulnerable? What should it watch out for?
3. What recommendations would you make to senior marketing executives
going forward? What should they be sure to do with its marketing?
302At 6.52 p.m. onWednesday, January 29, 2000, Rajpal and Sumitra bought a
food processor. There was no doubt. Any observer would agree that the
purchase took place at, precisely that time. Or did it? When questioned
after the transaction, neither Rajpal nor Sumitra could remember, who, from
both of them, first noticed or suggested the idea of getting a food processor.
They did recall that in the summer of 1999, they attended a dinner party
given by a friend who was specialized in South Indian and Chinese cooking.
The meal was scrumptious, and their friend Gupta was very proud of the
Excel food processor, which he had used to make many of the dishes. The
item was quite expensive, however, at about Rs 6500. The following
summer, Sumitra noticed a comparative study of food processors in Femina
and Savvy. Four different brands were compared across a number of
dimensions. At the same time, Rajpal noticed that many consumer reports
compared the number of brands of food processors. In both instances, the
Excel brand was on the top. Rajpal even ran his own weighting schemes on
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some of the results. Later that year new modles of the Excel were
introduced and the old standard model went on for sale, in departmental
stores at Rs 5,500. The Pals searched, occasionally for Excel in ‘Discount
houses’ or in ‘Wholesale showroom’ in hope to find an even lower price for
the product, but could not find.
In the year 1998 for Diwali the Pals traveled from Mumbai to the home
town inMeerut. There, the Pals received sunbeam Deluxe Mixer as a gift
from grandmother. While the mixer was beautiful, Sumitra , immediately,
thought how versatile a food processor would be and brought immediate
agreement form Rajpal. The box was not opened, although many thanks
were expressed. The box remained unopened the entire time the pals kept
the item.
Back home in Mumbai, in January, sumitra again saw the item of Rs 5,500.
Excel advertised by Rich’s one of the tow major full-service departmental
stores in Mumbai. Rajpal and Sunitra visited a branch location in a Saturday
afternoon and saw the item. The sales person, however, was not
knowledgeable of its features and not very helpful in explaining its
attributes. The Pals left disappointed. Two days later, Sumitra called the
nearby store where she talked to Mrs. Gupta , a seemingly knowledgeable
sales person. Furthermore, Mrs. Gupta said that they could exchange
Sunbeam Mixer, which they received as a gift for processor. On the
following Friday morning the Pals drove through heavy rainy day traffic to
Rich’s to meet Mrs. Gupta. After a brief demonstration, the Pals confirmed
their initial decision to buy the Rs 4,500 basic item. They then asked about
exchanging the Sunbeam mixer that they had brought with them. “No
problem” said Mrs. Gupta.
After making quick phone calls, Mrs Gupta returned with bad news, Rich’s
had not carried that particular model of mixer. This was a single colour
model that is usually carried at the discount houses. The one carried by the
better departmental stores such as Rich’s was a two-tone model which
allowed two-tired pricing structure through two different channels of
distributions. Mrs. Gupta was sorry, she could not make the exchange, but
suggested that other stores such as Ebony or Big’s kemp might carry the
item. She even offered to allow the Pals to use her phone to verify. Sumitra
dialed several of the suggested stores, looking for a retailer who carried
both the Excel and the Sunbeam model. Finally the sales man at Ebonys
agreed to take the item if she could get there by afternoon. Ebony’s was
one and a half km away. She took a taxi to ebonys with the still unopened
mixer box. After an hour later Sumitra returned with Rs 1000 in exchange
for the mixer. Together they bough the Excel at6.52 p.mand proudly took it
home.
Questions
1. Who of the Pals decided to buy the Excel food processor? Defend your
answer.
2. When did the decision to buy the processor made? Discuss.
3. What in your opinion was the deciding factor in purchasing the item?
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4. Would you consider this purchase process to be careful and deliberate?
Was it an inefficient use of time? Is it a good model to follow?
303 Demand for Automated Switches
Singer Electronics is a manufacturer of automated switches that could be
programmed to turn lights or appliances on or off at designed times. The
switched incorporated microprocessor to achieve automated operation. The
industry sales had increased rapidly since 1997 and with the mass
production the prices came down significantly.
In 1997, singer had a major market share of 50 percent of the units
produced. However in 2000 a major competitor entered the market and
aggressively went after the market share with lower than average industry
prices. By 2002, singer had 35 percent share with its nearest competitor at
30 percent of the market
Singer’s market share was declining due to aggressive marketing by its
competitors and Singers belief that its high product quality demanded a
premium in the market place. Singer followed the price reduction by its
competitors reluctantly but always 2 to 3 percent higher prices
The marketing manager was asked to forecast the demand for the
automated switches over the next five years. Based on this demand he was
further requested to develop Singer’s sales over the next three years for two
scenarios: (1) Continuation of same policies, and (2) Increase market share
to 45 percent in three years
MARKET FOR AUTOMATED SWITCHES
Year Unit Sales Average Price
Total
Revenues(Millions)
1997 200000 60 12
1998 500000 45 22.4
1999 1000000 36 36
2000 2500000 30 75
2001 4000000 27 108
2002 5000000 24 120
SINGER’S MARKET SHARE
Year Unit Sales Market Share
Total
Revenues(Millions)
1997 100000 50% 6
1998 250000 50% 11.25
1999 450000 45% 16.2
2000 1000000 40% 30
2001 1520000 38% 41.04
2002 1750000 35% 42
Questions
Develop a demand profile (units and revenues) for automated
switches over the next five years, and state your assumptions of
business environment.
1.
What will happen to sales if Singer continues its current marketing
policy?
2.
Do you believe that Singer could increase its share to 45 percent on
three years? What would be the impact of this strategy on company’s
profitability?
3.
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304 Marketing in a changing society
As economy expands and education becomes widespread, more and more
family units have two or more earning members. The traditional role of men
as the brand earner is now diminishing as women enter the workforce.
Some women work because they like to pursue careers and put to use their
education, while others work to supplement family income.
Both types of women groups point to the transformation in society being
caused by the expanding ranks of working women. The changing role of
women has already affected consumer advertising, politics and other
recreational activities.
Many marketers have leaped into the multibillion dollar “working woman”
market, with mixed results. They are offering everything from working
women magazines to seminars on climbing the corporate ladder. Many are
finding that they initially misunderstood the employed woman and her
effect, not only on new but also on existing product markets. For example,
the perception was that women with pay cheques like to “splurge” on
themselves. But women polled said that they feel guilty about such
expenditures. In general, there has not been enough thinking about what the
changing market really means. But it is clear that this trend has squelched
some outmoded assumptions.
Marketing of household products, for instance, should emphasise thrift,
convenience, or speed, if it is to succeed. Women no longer find their
identity and self-esteem in clean, brighter-than-bright kitchen and house.
Two-income families share decisions about purchases from banking services
to bleach. They want plenty of product information which is equally
appealing to men and women. Women aren’t necessarily doing all of the
shopping and meal preparation any more. Men, children and especially
teenage girls are making choices of food and other products. New products
that promise more leisure will also favor among employed women. Today’s
two income family earn more than average family but saves a smaller than
average proportion of its income. The working couple buys more clothes,
cosmetics, transportation, domestic services, child care, restaurant meals,
and readymade food.
Questions
With more women working, why should the traditional advertising
concept be changed?
1.
In developing new household products, how should the marketers
target the buying population?
2.
Characterize the changing role of men, women, and children in
working family.
3.
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305 Marketing Management Process
Diebold Company specialized in making safes over the last 25 years. It had
a solid reputation building safes that survived fire and other catastrophes. In
the 1980’s, Diebold supplied bank branch networks with safer security
systems and drive-in teller windows. The business boomed as branch
networks multiplied. The marketing managers knew that growth from these
products would slow eventually and that they needed new trend-setting
products to keep the company profitable.
In the 1990’s, the company decided to break into automated teller machines
which were being installed by big bank organizations. At that time, Themis
Corporation had a big lead in the market and ABM and MCR Corp., major
electronics corporations, were challenging Themis. Diebold lacked
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electronics and automation capability and, most importantly, know-how to
crack the market.
When the decision to enter automated teller market was made, Diebold
acquired electronics expertise and devoted resources to extensive research.
Diebold through its marketing research discovered that Themis in its rapid
growth and created servicing problems. Moreover, Themis was complacent
as the leader and neglected to make their products up-to-date. MCR
entered with a machine that was too big, slow and clumsy. ABM’s
production was not enough to satisfy the demand.
Diebold capitalized on competitor’s weakness and entered with a product
that was well suited to banking needs. Diebold was willing to work with
customers to develop special packages that were tailored to bank’s
specifications. It modified the mechanical design and programming for
Citibank. The flexibility offered by Diebold won business rapidly from
competitors. Diebold offered extensive servicing for overcoming
operational problems customer had with Themis. Diebold fixed machines
wherever they had problems, thus increasing reliability and reputation.
Diebold acquired 47 percentage of the business in seven years based on
high quality products that offered up-to-date services and a tremendously
responsive after sales services to customer. Diebold nearly doubled its
assembly capacity to fill numerous orders. Its backlog is growing instead of
shrinking. Its profits doubled and stock price jumped.
Questions
How did Diebold turn the odds against it and gain leadership
position?
1.
What is that we can learn from the success story of Diebold?2.
306 Nirma- SWOT Analysis
Strengths: Strong brand equity, Nirma is a $17 billion umbrella brand
offering consumers a broad portfolio of products at multiple price points in
the Detergents, Soaps & personal care market. Produces a range of
industrial chemical products which are primarily serving as raw material or
intermediates for soaps and Detergents business. Market leadership in
detergents and fabric wash and second largest player n toilet soaps. Wide
distribution network.
Weakness: High interest burden. Less presence in premium segment. Lacks
global tie-ups and thus finding it hard to tap export markets.
Opportunities: Exports. Acquisitions for strengthening its distribution
tie-ups. Entry into other categories like shampoos, toothpastes, and fabric
whiteners.
Threats: MNC’s coming into India, particularly in Toilet and Soap industry.
Emergence of small but strong regional players. Nirma as a brand has been
able to etch a niche for itself in the face of intense MNC competition. It has
only emerged victorious in its core competency, detergents, but has also
successfully moved on into newer products. Nirma’s achievement is surely
something about which an Indian can be proud of, a brand that has lived
up to its catch line; Better Products, Better Value, Better Living!
The Man behind the Brand: A man of exemplary vision and extraordinary
courage, Mr. K.K Patel has his finger on the proverbial pulse of the rural
India, from the very beginning. He is the stuff that legends are made of. The
wall street journal, The Economist, Discover India and the Economic
Review have all featured him at some time or other. A marketing wizard,
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humanitarian and entrepreneur par excellence, his marketing expertise
forms the basis for the case studies at Business Schools. Mr. K.K Patel
firmly believes that a person who has received a lot out of life needs to give
something back. One among the many contributors has been the Nirma
Memorial Trust that takes care of deprived women in Gujarat. The Nirma
Foundation, set up in 1979, has donated millions, within the state & outside,
for schools, colleges, temples and social institutions. The best reward of all
Mr. K.K Patel, as he often says, continues to be “the smile on the face of a
satisfied buyer”. He built the brand, Nirma, from scratch, took it from
strength to strength and, in the process, pioneered rural marketing in India.
The result being one of the most comprehensive and widespread
distribution networks in the country. Housewives swear by it, retailers stock
it unfailingly, and brand loyalty continues to increase. Nirma has arrived
and has truly become a household name, in every sense of the term.
Commenting on his success, in Sep 10, 1988, the Economist wrote:” Rarely
does a small manufacturer in a developing country take on a big
multinational and win . Mr. K.K Patel has done it in India, taking
three-quarters of Hindustan Lever’s potential market from it.”
Questions
What is that you can learn from the success story of Nirma?1.
Can you use similar strategies for other fast moving consumer goods?2.
307 Planning for new business
Mr. John London was a sales manager for a big heating equipment company
until he acquired Abbott’s Seafoods. This was the first business he owned
when an entrepreneurial urge led him to buy the tiny seafood cannery in
1995.
Mr. London’s initial strategy was to make Abbott’s national firm. He
succeeded in getting Abbott’s products into 50 East Coast distributors that
sell to restaurants and institutions. This was a big step for a firm takers. So
Mr. London spent long days calling on chefs. But selling to individual
restaurants took too much time and energy. Instead, he began to
concentrate on sales to institutions. Selling to big users involves a lot million
business a year. Mr. London had to change his marketing plans and the
manner in which he marketed to get a gradual business expansion .
Mr. London thought he could bring the clam fritter into the market in 1988.
That was two years ago. But the new product is still behind schedule
because he had hired a free lancer who was busy in developing another
product for Abbott’s to sell to a large catering concern.
Mr. London sold this product to a home-office executive of this large
catering concern. He approved the new soup and ordered big quantities of it
for all company’s locations around the country. Soon, however, local
managers of the carterer who had final say over what they served were
complaining because they were forced to use Abbott’s soup. Abbott’s did
not lose money on this order but huge anticipated sales disappeared. This
disaster could have been avoided if the product had been introduced in one
location at a time to gain the local manager’s acceptance.
The test marketing of clam fritters with a group of local women turned out
to be a disappointment. They said the fritters were too greasy and the
colour was too dark as if they had been overcooked. So it was back to the
drawing room.
On another front, Abbott’s was forced out of its old factory because it
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violated zoning laws and local officials would not grant a waiver. Mr.
London knew of this problem when he bought the company but he thought
he could win the waiver from the city. So he did not expect to move. He
found new quarters in an old commercial neighbourhood but the move
extended one year beyond his expectations. Obtaining influence and getting
plans approved took twice as long.
Plans go wrong for everyone sometimes; but new business owners usually
tend to make unrealistic plans. Optimism and inexperience lead them to
believe they can do more I less time than they really can.
Questions
What are the lessons learned from new small owners?1.
How can planning be improved or is the learning from experience the
only alternative?
2.
Are some of the disappointments due to lack of resources or
underestimation of actual time to complete tasks ?
3.
308 Quality Bathing Soap
Navin Mehta, a fresh chemical engineer, developed a new detergent during
his M. Tech. course. Upon passing out, he invested a small capital to start
manufacturing and selling the detergent under the brand name ‘Nippo’.
Coming from a middle class family himself, Mehta decided to price his
detergent much lower than the other detergents available in the market at
that time. His pricing strategy pad rich dividends and Nippo became an
instant success. Using his newly acquired financial strength, Navin
developed a premium quality bathing soap with a unique colour and
perfume combination. Although, the cost price of this soap was itself high,
Navin again priced it substantially lower to be a comparable product in the
market by maintaining a low profit margin.
Questions
Do you feel Navin committed a pricing mistake in the case of bathing
soap? Give reasons for you answer
1.
Suggest an appropriate marketing plan to Navin Mehta.2.
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309 Computerisation of Distributor's Accounts
John Symon and Co. Ltd is a fast moving consumer goods company. The
company is in business for the last 20 years. Due to keen competition in
major cities and big towns, they had planned at the beginning of 2009 to
expand their business in smaller towns on all India basis. To set up the basic
infrastructure they decided to computerize their distributors. The total
number of distributors were approximately 200. The implementation was to
be completed by middle of 2010.
The purpose of computerization was to get information from distributors
regarding product sales, collections, outstanding, etc. on a more frequent
basis. The information was to be uploaded into the ERP package for
consolidation and analysis and then proposed to be sent twice a week to the
Head Office through e-mail.
The major initiative was headed by Mr. Krishnan, the finance Head and Mr.
Patil, the logistics head. The programme was to be developed by the IT
department along with the logistics department. The internal needs of the
organization were assessed and the programme developed for
implementation at the distributors. The distributors were informed by means
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of a letter about the implementation schedule and asked to purchase the
computer, printer and get an e-mail connection. The Zonal Sales Managers
were similarly informed.
The big distributors were also dealing with other products. Many of them
had a computer which was used for financial accounting and keeping track
of all their businesses. Some of the small distributors had a computer but it
was not compatible for the implementation of the new software. The
distributors also complained about lack of back up support and
infrastructural problems. Software had bugs, which were not noticed before.
The project was delayed and distributors’ resentment was growing. At the
end of 2010, the heads of the concerned departments sat down to get the
project back on steam.
Questions
Do SWOT analysis of the project1.
Where did the team go wrong?2.
Was there a better way to implement the initiative?3.
310 Segmentation in Retail trade
Company
Morgan Departmental store has been in business for 64 years in a small
town in West Virginia. The department store sold all items such as shoes,
gifts, small appliances, and apparel from children to adults. The store was
hit by recession and was out of touch with its customers. It faced plunging
sales and soaring debt. About 60 percentage of its sales were on credit
charge accounts and as the recession deepened, customers fell way behind
on payments causing a cash squeeze for the store. To pay its bills, the
storeborrowed money at 21 percent, interest, while it could collect only 18
percent interest on credit card balances due to State laws. Morgans debts
climbed and losses increased.
Survival Stage
The banks shut off credit and manufactures stopped shipping unless they
were paid on delivery. Owners of Morgan decidedto liquidate the business
and called in Mr. Buxabaum. Mr. Buxabaum, upon his arrival, found that
the overall unemployment was much below national average and even
lower among the store’s middle income customers. For two days he
surveyed the towns traffic pattern, competitors merchandise and shopping
habits at a new mall 50 km away. He talked with local media about store’s
advertising strengths and weakness.
He recommended that the business could be salvaged if the store owners
took certain action. He said the store was trying to be everything to
everybody. So he recommended that Morgan eliminate least profitable lines:
shoes, gifts, small appliances and the children’s department. Morgan
reduced major appliance display area to make room for expanded ladies’
and men’s apparel. The ladies and men’s garments had high volume and
higher profit margins. Mr. Buxabaum found people driving out of the town
to buy sheets and towels at a distant store. Morgan, therefore, added a linen
department.
To get shoppers, the store announced a three-month “fight for Survival”
sale offering discounts of as much as 50 percent. Previously, Morgan had
discounted only 20 percent or less Mr. Buxabaum said that at least 40
percent of the merchandise must be sold off price or you won’t bring in
customers.
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Morgan also revamped its merchandise buying. With Mr. Buxabaum’s help,
they found suppliers who could offer better prices on furniture and apparel.
Instead of buying from travelling salesman, Morgan’s buyers went to
manufacturer’s showroom. These efforts provided 10 to 30 percent savings
on most apparel and also allowed store to update its fashions more
frequently.
These changes finally paid off. The store’s sales went up for two months in
a row. Profits were slim but atleast the cash started coming in. Morgan feels
that its fight survival is far from over. It needs more planning, more market
research, and rapid changes to meet the customer demands. It must offer
appropriate marketing mix for each typical market segment. It must have
enlightened promotional devices. It must have clear and precise marketing
strategies.
Questions:
Why was Morgan Store about to fall?1.
The reason retailers fails is because he does not make changes. He
doesn’t ask himself basic questions: who are we trying to reach?
What are our strengths? Comment.
2.
What other actions should Morgan take to continue on the road to
profitability?
3.
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