Explain the effectiveness of logistics system in rural market
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Marketing Management
Case Studies
Case (20 Marks)
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)
This case analyses the distribution
strategy of Hindustan Lever Limited (HLL), the 51.6% subsidiary of Unilever and
the largest FMCG Company in India. Traditionally HLL's distribution network
consisted of wholesalers and retailers. HLL had presence in 80 lakhs retail
outlets and there was 'one size fit for all' distribution strategy to serve all
those outlets. But due to change in consumer demography, consumer behavior and
market structure, the traditional distribution system failed to deliver the
results. Urban
customers wanted products with unique,
value added and customized offerings with convenient shopping. Apart from this,
emergence of rural market also forced HLL to change its distribution system.
HLL dealt with these two issues differently. For urban
market it developed different
distribution system cater to different type of customers. Along with this, it
provided value added service, convenience and customized offering to urban customers.
On the other hand, in rural markets, to increase brand awareness and product
availability, it introduced alternative distribution systems. Through these
changes, HLL brought its brands closer to customers. HLL's approach to
distribution was holistic and developed a three way convergence of product
availability, brand
communication and brand experience.
Answer the following question.
Q1. Discuss about the supply chain
management and logistics system in FMCG market
Q2. Explain the effectiveness of
logistics system in rural market.
Q3. Debate the evolution of market
logistics system.
Q4. Discuss how effective
implementation of information technology helps a company to make its supply
chain an efficient one
CASE STUDY (20 Marks)
Nike, one of the leading brands of
athletic footwear, apparel, equipment and accessories is Oregon, US based
company. It company’s 50% of the revenue comes from international sales and it
registers it presence in more than 160 countries. Nike owns 400 retail outlets
which operate domestically as well as internationally. Over the past few years
Nike’s subsidiaries have been performing well and as a part of the company’s
growth strategy and to maintain its position in the market Nike started
concentrating on its subsidiary business in the year 2006. With the acquisition
of the Starter the company also envisaged to setup itself in the value retail.
The case analyses the impact of Nike’s subsidiary brand on its core brand.
Answer the following question.
Q1. Discuss the segmentation, targeting
and positioning strategies of core brands and subsidiary brands.
Q2. Give an overview of the case.
CASE STUDY (20 Marks)
Procter & Gamble's Old Spice, a
major player in the male personal care sector, was launched by Shulton Company
in 1938. Although Old Spice was tagged as an Old Man's Product since the 1970s,
the product maintained its market leader position till early 2000. Ever since
P&G acquired Old Spice in 1990, it has been aspiring to give Old Spice a
spicy and younger appeal. Its reasons for revamping its historic image with
generation X has become stronger with the success of Axe, an offering from its
competitor – Unilever, in 2004. Old Spice in its struggle to regain its lost
leadership status, is trying to make its old sailor whistle a new tune.
Answer the following question.
Q1. Debate the the growth of Old Spice
over the decades
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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