Sunshine Lumieres was established in 1992 in Bangalore, India to manufacture lamps mainly for household use
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Marketing
Management
Case Study (20Marks)
Kaggi’s Food Co (KFC) is
a large producer & seller of edible oils, flour, pulses, spices & some
other food items. Over past ten years KFC could establish itself well with
popular brand names for its produce. Oil brand “Sunrise” from KFC is very popular
as low fat, healthy cooking medium. KFC has three mills, one each in Meerut,
Dehradun & Lucknow. To avail tax benefit only spices are procured from
small manufacturers who carry out their operations under strict supervision of
KFC quality team. All other items are manufactured in company’s own mills. SO
far entire produce of KFC is sold easily in northern region of seven states
through loyal set of distributors & retailers. For past three years KFC has
started feeling the pressure of competition, more in oil & flour brands. Apart
from bundling free soap, detergent, pet jar etc., competitors have increased
distributor & retailer margins on volume off take. The young and
professional management team of KFC is confident of achieving targets and
enjoying the scene. KFC mills are not very modern ; nevertheless, they are
maintained well. Breakdowns and production stoppages are very rare. KFC has
recently bought a large salt manufacturing facility in a coastal town. This
mill produces good quality common salt on contract basis for two different brands.
The previous owner found this arrangement very neat with assured and quick turn
over even though the profit margin is low. KFC did not wish to change the
arrangement immediately, but thought building own brand for salt will not be
difficult. It will increase profit margin also. Added attraction is that
branded salt can easily be sold through existing channel. Market for branded
salt is already over crowed. There are many national and local brands. The
leading brand TATA is there for over 30years. There are other big national
brands with deep pockets for promotion such as Nirma, Tseries, Dandi, Catch
etc. Each brand is trying to take a particular but different position. While
common planks are crystal clear, white & free flow, the special positions
are iodized, triple refined, from the house of TATA etc. Prices & packing
are almost same. Only Dandi & Catch are costlier. Catch sells in
dispensable container of 400 gms also
Answer the following
question.
Q1. What core product is
Kaggi’s Food selling when it sells edible oils?
Q2. Carry out a SWOT
analysis for Kaggi’s Food
Q3. Suggest some
differentiators to build up competitive advantages for KFC’s brand of salt
Q4. What will you
suggest to ensure trial & feedback from customers of salt during launch?
Case Study (20 Marks)
Sunshine Lumieres was
established in 1992 in Bangalore, India to manufacture lamps mainly for
household use. The company was established by Dr. Srinath Kashyap who had
extensive experience in the lamp industry with the major multinational
manufacturers in India and overseas. Sunshine was involved till now in
manufacturing and supplying lamps for consumer and household use under various
brands for the leading lamp companies. Dr. Kashyap was involved in looking
after the manufacturing and marketing functions while his wife looked after the
Finances and the HR functions. The Company had a total of 50 employees and
grossed revenue of Rs.9 crores in 2005. The market in India was large and
growing due to the increasing affluence and the massive rural electrification
programmes of the Government. Post liberalization in 1992; the market dynamics
slowly started changing due to increased competition from leading brands
looking to capture larger market shares. Dr Kashyap felt it was time to
diversify this business and get into newer product segments. The lamp industry
can be classified into various segments like: Consumer household Lamps
Industrial & Commercial lamps Specialty lamps like high intensity lamps
used in Medical & Office Equipment Automotive lamps Miniature lamps Energy
efficient lamps like CFL lamps, LED lamps etc. While the large MNCs were
present in all segments, most local manufacturers were involved in the consumer
and household lighting. Typically, household lamps sold at around US$0.25 per
piece at the retail level while the Industrial and commercial lamps sold at
prices upwards of US$25 per piece retail. Sunshine lumeries hired Dr. Mohan
Das, a bright Engineer from IIT and MBA from a leading Business school. After
working in some leading companies, Mohan felt it was time for him to exploit
his innovative skills and create world class products. In a very short span of time
after joining Sunshine, Dr. Das was able to produce some very interesting and
technologically advanced products. Dr. Kashyap felt that over time , in low
value products like lamps, the large MNC’s would be forced to give way to
players from developing countries like China and India, who would over time
establish the products under their own brands. Establishing the Sunshine brand over
time was therefore vital for the future. Meanwhile, Mohan had designed a slew
of new and innovative products – comparable with the best in their class in the
world, in the energy efficient and Industrial lamp categories. Given suitable
financial investments, these could take the company’s revenues to over Rs.100
crores by 2008 between the domestic and export markets. As he looked out of his
office window, enjoying the light drizzle and cool breeze of Bangalore, Dr.
Kashyap’s realized that he was at a point of inflexion. If the current
opportunities were exploited fully, it could lead to great fortunes for himself
and his family. He could even take the company public and unlock the value of
his holdings. However, it would also mean that Sunshine would have to evolve
into a professionally managed company and have a larger number of employees. He
wondered how he should go about structuring his Sales and Distribution
organization so as to grow manifold both domestically and overseas within the
next three years before taking the company public. Dr. Kashyap was convinced
that he needed to seek professional advice. He invited Dr. Vasant Rao, an old
friend and leading Management expert in Bangalore to visit his office for a
discussion on a broad game plan
Answer the following
question.
Q1. How Dr. Kashyap
should go about professionalizing & restructuring his organization?
Q2. Should the sales be
organized on geographic or product basis?
Q3. Should be
distribution be common for all products?
Q4. Should he have his
own Sales and Distribution organizations in some countries?
Case (20 Marks)
A Case Study on Classic
Airlines: Classic Airlines is facing an organizational issue. External and
internal marketing programs have not been able to satisfy the needs and wants
of the stakeholders. Target customers are looking at the services offered by
other airlines to satisfy their wants and needs. This has resulted in poor
sales and reduced profits for the company. The marketing plan of a firm “helps
the firm connect with its customers” (Kerin et al., 2006). Therefore, Classic
Airlines wants to develop an effective plan of action that will not only help
attract and retain customers, but also boost sales and profits. The Situation
Issue and Opportunity Identification Classic Airlines is a 25 year old company
that commands a fleet of more than 375 jets that serve 240 cities with more than
2300 daily flights. The company is facing numerous challenges because of rising
costs and lack of innovation. Customers are not satisfied with the service they
are receiving and management cannot agree on how to correct the issues. A
manager at Classic Airlines expresses, “Your challenge is going to be rising
above our competition without discounting airfare” (Case Study, 2008). The
company will have to figure out strategies to overcome the challenges.
Challenges Identification Classic Airlines must address the challenges the
company is facing. The company is experiencing a decrease in stock prices.
Employee morale is low because of finger pointing and lack of unity. The case
study states that “loyal customers were jumping ship and the ones still aboard seemed
to be flying less frequently” (Case Study, 2008). The senior vice president of
customer service explains that “customers have no voice” which is a major
challenge for the company. Classic Airlines and many of its rivals expanded too
quickly (Case Study,
2008). The case study
mentions that the CEO and CFO focus on numbers and less on marketing.
Membership in classic rewards is down nearly 20% and the average number of
flights per member is down more than 20%. The company recently mandated a 15% across
the board cost reduction over the next 18 months which is also a major
challenge for all departments. “Changes in the marketing environment are a
source of opportunities and threats to be managed. The process of continually
acquiring information on events occurring outside the organization toidentify
and interpret potential trends is called environmental scanning” (Kerin et al.,
2006).Environmental scanning will help the company progress A technique for
marketing research is to utilize the 5step marketing research approach which
encompasses the following steps: Define the problem Develop the research plan
Collect relevant information by specifying Develop findings Take marketing
actions The final objective of the company is to become the largest airline
provider. A SWOT analysis identified several opportunities
Answer the following
question.
Q1. Discuss different
opportunity for Classic Airlines
Q2. When deciding the
optimum solution, Classic Airlines must understand what their goals are, what
their end state vision is, and also what challenges they have faced with
product development. Discuss
Case Study (20 Marks)
When HLL introduced
Lifebuoy in the Indian market in 1895 (110 years ago) it was positioned as the
soap that would destroy germs and keep the body healthy. The brand found the
going tough especially in rural markets where most people were accustomed to without
any soap. HLL then decided to project lifebuoy as soap for hand wash. The
approach seemed is pay off. By 1900 Lifebuoy had established itself as soap for
hand wash. At this stage, the brand’s inherent properties were expanded and
lifebuoy was repositioned as bath soap. Health remained the benefit
proposition. “Where there is lifebuoy, there is health”, become a popular jingle
in rural India. The brand was also projected on the plank of economy. Much
later, in 1964, the brand was relaunched with a change in shape and wrapper
design. Lifebuoy started associated with sports. The health and body fitness
dimension got reinforced HLL had many requirements to meet. It had to tap same
of the emergency market needs. It had to play down the image of lifebuoy as villagers
soap and it had to embrace to earnings from lifebuoy brand in the long term.
HLL decided to meet these needs through line extensions such as: Lifebuoy
personal, Lifebuoy plus, Lifebuoy gold, liquid lifebuoy and lifebuoy active.
Answer the following
question.
Q1. How did HLL Position
lifebuoy in the beginning?
Q2. What was the
geographical focus and why?
Q3. Explain why the
brand was going tough in the market?
Q4. What are your views
about HLL’s building line extensions?
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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