Discuss the segmentation, targeting and positioning strategies of core brands and subsidiary brands
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Marketing Management
Case Studies
CASE STUDY (20 Marks)
Eureka Forbes successfully introduced
and sold for many years few models of vacuum cleaners through door–to door marketing.
During the initial few years Eureka Forbes vacuum cleaners were not available
at any dealer channel. These were sold only by direct marketing. Some experts
attribute the success of Eureka Forbes to two factors: one, implementation of
an effective sales management system & two, elimination of channel conflict
by adopting only door to door selling even at a stage when durables were sold
only through dealers. Scene1 It has been a common experience that well
advertised & well organized trade fairs generate huge sales. Experts
believe that people visit such trade fairs with a frame of mind that is
favorably predisposed to making purchase decisions. Deriving a cue from the
trade fairs, way back in 1980, a small & upstart computer manufacturer
arranged “Road Shows” in metros & mini metros. It was a period when foreign
computer vendors were asked to leave India; indigenous makes of computers were
few; perception of people about computers were – highly expensive, complex to
use, needed trained manpower to operate that was scarce & performance of
the hardware was unreliable. Those were the early days of computer marketing
when there were no dealers & manufacturers had to sell through their own
sales team. Scene2 In the year 1999 Compaq Corp declared that its objective for
the year is to become the Internet leader in the InfoTech industry. But for
some strange reasons the rival company Dell took the lead in sale of PC’s over
the Internet. They take just over three days to deliver a built to specs PC
ordered via the net in the USA. Compaq, in the meanwhile, has behaved all
muddled up in its Internet plan. The company made a tentative start, but
recently announced that it has stopped selling its computers to internet only retailers
worldwide. Such a move had a drastic effect on major players such as Siberian
Outpost & Shopping.com, which derive much of their revenue from the sale of
Compaq PC’s through their websites. On the other hand Compaq plans to purchase
Shopping.com and merge it with the Alta Vista search engine on the net. Compaq
also declared that its move to stop retailing on the net is not permanent &
it will reexamine this policy after three months. So what exactly prompted
Compaq to move away from what is apparently the direction in which all others
are headed? Industry watchers say that Compaq’s regular stores were being hurt
through online sales. Many online retailers sell items at just above the procurement
cost, since they maintain low inventories and have hardly any overheads to take
care of. This was turning out to be the competition to Compaq’s brick and mortar
retailers, who cannot simply match those prices because of slow operations and
high overheads. As against this Dell, who sold only through direct marketing,
could derive immense advantage from Internet retailing. This was supplemented
by a highly rated online customer support service.
Answer
the following question.
Q1.
Explain channel conflicts. What lesson do you learn about selection of channel
from the above scenes?
Q2.
Compare the merits & demerits of selling by company’s own sales team,
Dealer Channel & Direct Marketing?
CASE STUDY (20 Marks)
Nike, one of the leading brands of
athletic footwear, apparel, equipment and accessories is Oregon, US based
company. It company’s50% 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)
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)
From luxury to budget to nofrills and
boutique... the major hotel giants are moving ahead with innovative concepts,
and the outcome – a never before choice for business as well as leisure
travelers. Forging ahead amid stiff competition and industry growth nearing
maturity, hoteliers are constantly thinking of new value innovations. One such
innovation gave birth to the nofrills concept, based on a typical Japanese
capsule hotel along with considerable inspiration from low cost airlines and
first class accommodation
on air flight. Particularly visible in
popular regions of the US and Europe, they set a unique and distinct
competitive position in the market. However, in an industry where customers
identify their lifestyle with the hotel brands, known for luxury and comfort,
how would nofrills budget hotels appeal to the customers? Given their strategic
pricing, can these hotels earn sustainable profits amid competition from high end
as well as low end hotel segments?
Answer
the following question.
Q1.
Discuss the development trends in the global hotel industry and its growth
across the years.
Q2.
Explain various operational aspects of hotel industry and their implications on
the performance of the hotel companies.
Q3.
Comment on Japanese capsule hotels, their characteristic features, and services
offered.
Q4.
Evaluate the success of these new concept hotels and identify their growth
potential.
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Project Report and Thesis contact
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