1. BOOK REVIEW
SUBMITTED BY :
Akshay Mandhana (29002)
Arindam Das (29005)
Gautham N (29014)
Jatin Jaswani (29016)
Lokesh Arya (29023)
Vaibhav Kumar (29055)

2. How to develop perception of
quality in the mind of consumer ?

3.  THE SPECIALIST EFFECT - by positioning your
company as doing nothing but making a certain
product or providing a certain service, and that all your
energies are focused upon doing that to the best of
your company’s ability.
 THE LEADERSHIP EFFECT - by being the first
company to offer a product or service, or by being the
largest company to offer it, conveys the idea that the
company is setting the standard and therefore must be
the leader in product quality.

4.  THE PRICE EFFECT - the highest-priced product
in the category is generally perceived to have the
highest quality (Rolls-Royce or Rolex).
 THE NAME EFFECT - a powerful and evocative
name for a product or service can help develop an
image of high quality. Perhaps the most important
aspect of quality is the name itself. It's especially
important to use a specialist name rather than a
generalist name.

5. Business model Fads
1960
• conglomeration
1970
• Diversification
1980
• Synergy
1990
• Convergence
Companies operating in
different businesses
Eg; GE
Company acquiring a counter
cyclic business to balance out
each other
Eg;Xerox
Companies could exploit
similarities between
products
Eg; coca-cola & Wine Co
It is a further development of
Synergy, with companies
merging with each other to
gain a leading edge.
Eg;computing,communicatio
ns& entertainment

6. Convergence
 Converse to convergence, the
computer industry has divided
again and again resulting in
personal computers, laptops,
notebooks, super computers
etc.,
 In late 90’s diversification was
dead and synergy &
convergence looked pale. The
Business world shifted in
opposite direction.

7. Focus on core values of business
 The companies started to focus on their core values of their
business.
 Volvo Sweden's largest company, has been paying down to
its original role as manufacture of cars and trucks by
getting by getting rid of a 26% stack on Hertz
 Creating a deep hole in business is more important than
creating a few inches of impression over
diverse industries.

8. Five key steps in Retail business
Narrow
focus
Stock in
depth
Buy cheap
Sell cheap
Dominate the category

9. A TALE OF TWO COLAS
Pepsi Co driven by growth at all cost.
Pepsi Co owned :
Frito Lay
Pizza Hut
Taco Bell
KFC
Hot n Now
Chevys
California Pizza Kitchen
D angelo Sandwitch Shop
East side Mario’s
In all 24000 restaurant units made up the worlds largest restaurant system
Coca Cola focused only on its beverage heritage.
Sales of Pepsi - $ 28.5 Billion
Coca Cola - $16.2 Billion
If we measure the value of these on the stock market basis ,
Pepsi Co - $ 44 Billion
Coca Cola - $ 93 Billion
Per Dollar Of Sales Coca Cola was worth 4 Times Pepsi Co.

10. Pepsi Vs Mc Donalds
24000 restaurants 14000 restaurants
$9.4 Billion sales $7.4 Billion Sales
$400 million profit $1.1 Billion profit
(4 %) (15%)
Market Value –
$10 Billion $31 Billion

11. PROBLEMS FOR PEPSI
 Management Problem
Beverage business
Frito Lay
Restaurant Chains
 Competing with Its customers
For Pepsi , Dominos Pizza is a Customer and a Competitor
Beverage Expert
Snack Food Expert
Fast Food Expert
CEO

12. STRONG BRAND NAME
WEAK BRAND NAME
NARROW
BROAD
NARROWING THE FOCUS
FOCUS
TOYOTA
McDONALDS
ROLEX
AMWAY

13.  Sacrifice is the essence of corporate strategy which
defines one’s position.
In politics a leader vigorously campaign to a set of
people while publicly denouncing the other set of people.
Two kinds of
consumers
One who wants to buy
what others do
One who wants to buy
different than others
CONSUMER FOCUS

14. Specialist Generalist
Establishasasegmentwinner
Lossofmarketshare
 Special segments must be treated with focus by
providing special benefits, otherwise they might feel
dejected and consequently might give up the brand.
 Strong narrow focus is better than weak broad
focus.
CONSUMER FOCUS (Contd.)

15. Competitive market
Advantage
Distribution
channel
Core
competency
During the
time of
failure a
company
should try
and figure
out what is
working for
it and focus
that.
Narrow focus in
a large market
is better than
broad focus in a
small market.
Focus is not a trap, but a goal to achieve.
 Amway focuses on distribution through agents.
 Hospitals are also good examples of focusing on
specified treatment.
 B-schools also concentrate on specialization.

16. One
foot
Another
Foot
OLD CAMP NEW CAMP
One
foot
Another
Foot
OLD CAMP NEW CAMP
WAYS TO COPE WITH CHANGE
One
foot
Another
Foot
One
foot
Another
Foot
One
foot Another
Foot
OLD CAMP NEW CAMP
OLD CAMP NEW CAMP

17. FOCUS
• Be in your product specialization
• Act Early
• Develop a totally new product
• New product with new name
• Move boldly
• Avoid fiddling with brand image

18. Enemies in a marketplace are required for
creation of position.
Try to innovate and improve the proposition for
your existing segments.
At times of merging companies one should not
lose focus.
FEW MARKETING MANTRAS

19. THANK YOU