CASE STUDIES

June - 2005 5 (a) Procter & Gamble and HLL are highly competitive companies in the shampoo market. Both the companies have brands for various segments, It may be worthwhile to mention that HLL has created and nurtured Sunsilk and Clinic brands for more than two decades in the Indian market. P & G's Pantene, HLL'S Organics and Colgate Palmolives Optima got into the market at almost the same period of time. Pantene and Optima were priced around Rs. 72 for 180 ml (some months after the launch) while Organics was priced at around Rs. 65.15 for 180 ml. The three brands were also available in sachets. They were positioned with 'haircare/nourishing propositions. Question: Comment on the pricing approach of the three brands mentioned above 5 (b) ACC is a well-known brand in the category of cements. It has a large distribution network of around 7000 stockists and 120 C& F agents. In 1995, the company's market share declined to 15% from the earlier 30%. About three years back the brand opened its first company owned retail outlet called 'ACC Ki Duniya" (World of ACC). The outlet reassures the customer about the genuine material and encourages interaction. This type of outlet is also likely to enhance the company's image. Question: Comment on the pros and cons of an outlet of this kind. Would such outlets alone enhance sales? Explain. June - 2006 Japanese manufacturers dominate the world motor cycle market. They have models in every part of the market and are continually bringing out new versions; indeed, some critics think that the rate of new model introduction has become counterproductive, since the market will not be able to absorb them all. Harley-Davidson, the American manufacturer, has survived and is successfully selling its nostalgically styled models at high prices in major western markets. The British industry, which once led the world, disappeared completely. All leading Indian motor cycles are being manufactured in joint ventures with Japanese companies. There are some manufacturers in Europe who tend to specialize e.g. in high powered sports models or small mopeds.

Questions (a) How would you go about segmenting the market for motor cycle? (b) What segments would you recommend an Indian manufacturer to tackle in (i) India, (ii) Europe?

June 2007 5 (a) Nestle have launched brands Quality Street, Lion and After Eight (Chocolates). These brands are being imported from Europe. Quality Street is an assortment of chocolates priced at Rs. 17 5 for 218 gm. After eight is a popular adult chocolate priced at Rs. 125 for 200 gm and Lion is a caramel wafer bar priced at Rs. 20 for a 45 gm bar. (Kit Kat is priced at Rs. 6 for a 17 gm bar and has a chocolaty taste while Lion has a crunchy taste). The brands have different tastes and will appeal to different target segments (though the target segment is one which may have already been exposed to these brands during visits abroad). These brands have been introduced in metros in up market stores which sell imported food products. The packaging of these brands bears the label "imported by Nestle India Ltd." indicating that they may be better than smuggled ones (which may be stale). Question Suggest suitable media /media vehicles for promoting these brands. Give reasons in support of your answer. 5 (b) the herbal shampoo markets are valued at around Rs. 100 crores. Nyle, Ayur, Dabur and Biotique are some of the established brands in the market. Helene Curtis (JK Group) has introduced a premium herbal shampoo (with variants Shikakai, henna, amla, brahmi and jasur) priced between Rs. 80 and Rs. 90 (500 ml) for different types of hair. The proposition is the benefits offered by the variant based on the combination of herbs. The benefits offered by the variants range from extra protection and nourishment to color, body and bounce. The shampoos have been launched under the brand name Premium Herbal Shampoos and they target urban housewives with a monthly household income of Rs. 25,000. The brand is distributed through 7 0,000 retail outlets and 120 Raymond shops. The company has planned only point of purchase (POP) posters initially and may consider the electronic media later. The shampoo has an annual advertising expenditure of Rs. 10 crores.

Question Comment on the marketing mix of JK's Premium Herbal Shampoos and give suggestions for making it more effective. June 2008 The male fairness segment industry is pitched at around Rs. 250 crore and the industry is growing at a Scorching 150 percent per year. The industry evidently has woken up to the fact that the metro sexual man has a large appetite for beauty (the industry expression is "male grooming") products, particularly driven by a desire to look as fair as the fairer sex. ABC Company recently launched GROOM PLUS' the first men's fairness cream and claims that the market feedback is highly positive and encouraging. It is now planning an extension of "GROOM PLUS" to products like Bleaches, Shaving Creams, and Lotions etc. Hitherto men used fairness cream /bleach that were available in parlor packs. Subsequent research showed that men prefer bleach of their own - with its own fragrance and specific skin type formulations, especially branded ones.

Questions (a) Suggest bases for segmentation of market for Groom Plus products. (b) Discuss the importance of packaging in marketing of the above Product range. (c) Suggest a suitable Promotion Mix for creating awareness of the above range of products. June - 2009 5(a) in the current scenario of recession and low consumer motivation various companies are being proactive in their marketing approach. Assuming that you are the Marketing Manager of an FMCG company planning to introduce Ready to eat food. Suggest a suitable STP strategy for the same. 5(b) a progressive company is contemplating to launch a cordless electric broom as an innovative product. Detail out the marketing mix for the product and formulate a suitable marketing strategy for this breakthrough product. June 2010 FINE FURNISHINGS LIMITED Fine Furnishings Limited is a small chain of distributors of good-quality office furniture, carpets, safes and filing cabinets. The company keeps in touch with advances made in the office furniture field worldwide and introduces those products which are in keeping with the needs of the market in terms of design, workmanship, and value for money and technical specifications. It is contended that furniture purchased is a capital investment, and a wise decision can help the buyer save on future expenses, because cheaper alternatives have to be replaced more frequently. Fine Furnishings trades only in good-quality furniture which is sturdily constructed. Differences between its products and cheaper, lower quality ones are well known to those who have several years of experience in the business. An important feature, the company feels is the availability of a complete list of components of the furniture system. This enables customers to add bits and pieces of matching design and color in the future. Such components are available for sale separately. Systems are maintained in stock by the company for a number of years, and spare parts for chairs and other furniture are always available. The company has experienced a downturn in trade over the past two years. In addition, it had to trim its profit margins. Last year, it barely broke even and this year it is heading for a small loss for the first time in the company's twenty years history. Questions: a. Advise the company in relation to its product mix. How will your recommendation affect the company's image? b. Advise the company in relation to its stock holding policy. How will your recommendations affect customer service?

(c) Suggest ways in which promotional activity might help the company out of the difficulties it now faces. June - 2011 Jeans have a wide appeal and acceptance in the country for their functional and symbolic value. Initially jeans as a symbol or westernization caught on the urban markets with a good number of foreign brands enjoying strong brand equity in the market. Over the last two decades the appeal of jeans has spread to rural and semi urban markets and consumers in these markets are highly driven by the aspirational appeal of jeans. Apache a brand of jeans has grown significantly in the last few years. The interesting aspect of this brand is that it is made of two ply twill, micro buffeted and enzyme washed for softness and is not made of Denim. The brand is available in few colors (other than the conventional denim blue) and in few cities. Question a) What kind of psychological factors can be used by the brand to influence consumer behavior in the jeans market? b) Develop a suitable communication strategy for the brand for the rural markets for this product. December 2005 Mr. Harish Jain, CEO of Energetic Enterprises, has established the firm for the manufacture and marketing of an innovative product. The firm earned a reputation of its product within two years of its inception and enjoyed monopoly position in the market for its product. Now it has a turnover of about Rs. 80 crores. Three years back, some firms entered the market and offered cheap substitutes which were of better quality. This year, Mr. Harish Jain is worried because about 40% of the market share has already been taken away by the new firms and he is not able to check this trend. Mr. Jain has been looking after both production and marketing functions though finance is being looked after by a finance manager having a professional degree in chartered accountancy. Mr. Jain has recently lowered the price of his product to fight competition, but even this has not helped. He has now approached you for advice to stabilize his sales volume. Questions a) What is the orientation of Mr. Jain in selling his product? (b) What environmental factors have caused a worry to Mr. Jain? (c) As a consultant, what strategies will you suggest to check further fall in market share? December - 2007 a) The pen market in India is around Rs. 700 crores and 60 to 65% of the market belongs to ball pens. Growth is in the range of 20% annually. The "X" brand created a kind of revolution by bringing in an offering priced higher than a number of competing brands and also offered greater reliability and superior flow. The brand is a market leader. "Y" was a follower brand priced below "X" and it has

become a 50 crore brand. The brand also provided a secondary differentiation by introducing a number of colors.

Question: Explain the pricing strategy of Y and its relevance to this situation. b) ABC is a well-known brand in the cement industry. It has a large distribution network of around 8000 plus stockists and 20 C and F agents. During the last decade the company's market share has gradually declined to 15% from earlier 30%. About a couple of years ago, the brand opened its first companyowned retail outlet called "ABC Ki Duniya" (World of ABC). The outlet reassures the customer about the genuine material, and encourages interaction besides displaying a range of refractory and aluminum based products. This type of outlet is also likely to enhance the company's image. Question: Taking into consideration the cement market and the commoditized nature of the product, comment on the pros and cons of an outlet of this kind. Would such outlets alone enhance sales? Explain your answer. December 2008 5. (a) According to Management Guru Peter Drucker, "There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available." Even if Drucker is right in claiming that the aim of marketing is to make selling superfluous, what are the practical problems associated with 'knowing and understanding' the customer so well that the product or service sells itself ? (b) What are the objectives of sales promotion? Suggest some sales promotion schemes for increasing the sales of the following: (i) Bath Soap; (ii) Instant Coffee. December - 2009 Mr. 'X' has developed a new product which will help people to get rid of the habit of smoking. The product is made of some herbs and has no side effect. Mr. 'X' is now in the process of giving a suitable name for this Unique Product and subsequently wishes to market it in Western India. Assuming that you have been hired as a consultant, suggest suitable answer for the following questions: Questions: a) Suggest an appropriate name for the product and justify your choice. b) Explain the SIP strategy for the above product. (c) How would you go about in creating awareness and educating the target audience for the product?

December 2010

TEXT BOOK QUOTES

Quotation 1 (By Hammer and Champ) : Since the early 1980's, the dominant force in the seller-customer relationship has shifted. Sellers no longer have the upper hand; customers do. Customers now tell suppliers what they want, when they want it, how they want it, and what they will pay. This situation is unsettling to companies that have known life only in the mass market. In reality, a mass market never existed, but for most of the twentieth century the idea of the mass market provided manufactures and service providers with the useful fiction that their customers were more or less alike. Now that they have choices, though, customers no longer behave as if they are al cast in the same mould. Customers - consumers and corporations alike - demand products and services designed for their unique and particular needs. There is no longer any such notion as 'the' customer; There is only 'this' customer, the one with whom a seller is dealing at the moment and who now has the capacity to indulge in his or her own personal tastes. The mass market has broken into pieces, some as small as a single customer. Quotation 2 (Joseph Pine I) People do not like hard-sell tactics, but they will tolerate them to acquire something they really want. If what they purchase turns out to be not quite what they wanted, their dissatisfaction with the product is magnified by their dissatisfaction with the sales tactics. The basic problem (in years gone by) was that the focus of the marketing function of mass producers was not on marketing - it was on selling, on 'pushing product'. Selling is a necessary part of the marketing function, but marketing is so much more, as management guru Peter Drucker observes: "There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available". Questions: (a)Market segmentation is based on the proposition that customers can be categorized according to their typical wants, needs and expectations. What is the future of segmentation, given the views of Hammer and Champy? (b)Even if Drucker is right in claiming that the aim of marketing is to make selling superfluous, what are the practical problems associated with 'knowing and understanding the customer so well that the product or service sells itself? (c)To what extent do the arguments advanced in both quotations apply to the public sector organizations?