Section II: Q7 Case study Remsons Shoes

Mr. M. Ramarao inherited a small shoe-manufacturing unit called Remsons Shoes from his father. Remsons was supplying shoes to dealers and other branded manufacturers. These shoes were then sold to users under others brand name .Remsons remained as unbranded suppliers. There was an intense competition among suppliers and hence profits margins were non-existent. Ramarao studied the market situation and found out that there was no future for remaining as supplier. He also found that it was difficult to sell directly without establishing a brand name. It was impossible for Ramarao to spend money on establishing brand name in consumer market. He decided to look for other opportunities .He came to know about safety shoes used in industries. Due to new legislations, large companies were forced to provide safety shoes to workers. The Big shoe manufacturers were not interested in this market as they considered market small and long procedures required. Ramarao got some imported samples and manufactured few shoes using traditional skills. With great difficulty, he found first industrial customer, a chemical unit. He supplied 1000 pairs to the chemical units. Within six months, there was major complaint, as the shoes were not withstanding the chemical used. Ramarao investigated the failures and replaced all the shoes though it was great burden to him. The next lot performed to customer satisfaction. During the industry interaction, he found out that though companies were buying the shoes, labor union were the real decision makers. He established good rapport with most industrial unions. He became member of International safety organization for labor and started India chapter .He involved his own skilled workers as marketing men as union leaders could co relate with them. Within short time, Remsons established as major supplier of industrial safety shoes. Remsons established low cost after sales service network using local mochi or shoe repairs. As a secretary of international safety organization, he kept good relations with industry managers and workers. He took safety as social cause and conducted awareness campaigns across industry. He was appointed as consultant to labor ministry on industrial safety. He found large market for safety products such as industrial helmets, goggles, earmuffs. He diversified into new products and started offering a total industrial safety solution to industries. 1) As a student of marketing, please explain the innovative marketing strategy followed by Mr. Ramarao with focus on marketing mix and STP (Segmentation, targeting, positioning). 2) What improvement in marketing strategy, you would like to suggest to Mr. Ramarao for future? Page 2 of 2

Case Study: Q7 Solid Air-conditioning Company (SAC)

Solid Air-conditioning Company (SAC) was a reputed packaged air conditioning manufacturing company catering to business establishments such as restaurants, show rooms, offices. Most top management was dominated by retired military and government officers. Mr. Manishkumar, a postgraduate in marketing, joined SAC as a trainee in marketing division. He was reporting to Vice president marketing retired Major General Raman. The VP marketing has an imposing personality and a large circle of influential business and social friends. The VP marketing used to tell Manishkumar, No need to talk to customer on product. We know what they want better than they do. They want solid sturdy products... just like tanks. Give them more metal and they will be happy. Today will be the golden day and we are sure to get real big order from our long time customer True value retailers. I met the Owner of True value on a golf court and he promised me to look into the matter. Just prepare for celebration. The VP marketing told Manishkumar. However, that was the bad day for SAC. They lost True value retailer order to a new entrant Mitachi. Managing Director of SAC was totally annoyed and called meeting of all from Marketing. Manishkumar found this as an opportunity for presenting his views on marketing. He met the maintenance manager, Mr. George of "True value Retailers before presentation. Following was feedback from Mr. George. I know your boss is friend of my boss. However, my boss instructed me to take decision on total value package. Though prices of both SAC and Mitachi are same, your AC consumes 30 % more power. I save Rupees 20000 per month in electricity bills by using Mitachi. You tell us your products are sturdy but for us they are hopelessly outdated. No electronics, no remote control, they do not match any dcor. You use reciprocating compressors.. No body else. They add to noise. Our customers get irritated by the noise level. Mitachi ACs have fuzzy logic built into it. It works intelligently to give optimum performance in varying conditions. No manual adjustment. Plus Mitachi carries three years on site warranty .Even if you offer 20 % less on price; we will never buy your machine ever again. Consider your self as Mr. Manishkumar and answer following questions. 1) What points you would cover in the presentation to MD? 2) What has gone wrong? Who is the decision maker? What were his objectives? 3) Which features of Air conditioning system gives value to customer? 4) What are your suggestions for improvement in marketing strategies? Page 2 of 2