Give reasons in detail for the failure of the marketing strategy of new entrant, Daewoo Motors India Ltd. (Daewoo), in the automobile market
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Marketing Management
Case Studies
CASE STUDY (20 Marks)
PayU India is an online payment service
provider with two business divisions: PayUbiz and PayUmoney, which, when
combined, cater to all the payment related needs of merchants and consumers
across the country. Indians (seemingly by nature!) like savings and with 350
million internet users, the internet is fast becoming the place for consumers
to find a bargain. PayU’s solution provides a superfast and reliable payment
experience across 100,000 merchants, all at the click of a single button. Each
transaction also triggers a reward mechanism offering consumers a 1% saving
every time they complete a payment. But while this satisfied the Indian need
for a bargain, it didn’t change actual buying behavior. As it turns out, online
customers in India tend to opt for the cash on delivery option, and Pay U money
needed to drive brand awareness to position themselves as the preferred payment
option. Pay U money decided to target users who frequently made online
transactions. Online shoppers spend approximately INR 3 to 5 lakhs (US$4,800 to
US$8,000) per shopper yearly, whether it’s on clothes, cosmetics, grocery,
electronics or food. Pay U money wanted to encourage this segment of shoppers
to use their platform as the main mode of payment, be it through credit cards,
debit cards or net banking, saving themselves 1% on their overall transaction
value along the way. Using Analytics tools, they were able to determine who
these customers were, and learn about their internet behaviors. With a better understanding
of their overall internet usage, Pay U money was well positioned to convey the
right message to the right user at the right time. To position Pay U money as
the preferred transaction option, the payment platform ran the nationwide campaign
just before the festive season. By offering cash backs on transactions during
the festive season, Pay U money hoped to instill a habit of saving amongst
their target audience. With campaign goals being both brand awareness and
transactions, Pay U money devised a phased marketing approach: Phase 1: TV Only
Ran for 30 days from July 13 to mid August, 2015 and focused solely on
traditional media, specifically radio and TV. The prime objective during this
phase was to drive awareness. Phase 2: TV + Digital Ran from September 25 to
October 22, was a mix of traditional media and digital. Objective for this
phase was to drive both awareness and transactions. Phase 3: Digital Only The
final 14 days, October 23 to November 4, was digital only, with core focus on
transactions. The mixed media approach meant PayUmoney could successfully
utilise the strengths of each media and not over emphasize on a specific
medium. While creating awareness through traditional media they were able to
target the right customer via digital platforms. “Marketing is about the right communication,
right audience and right time. Digital gives an edge to drive this more
efficiently and facilitates effective measurement too. For someone not selling
a physical product or service, experience is the only USP and hence the right
user touch point becomes most important,” says Nitin Gupta, CEO. Along with
YouTube ads, PayUmoney’s digital approach utilised the Google Display Network,
Gmail Sponsored Promotions, Double click and Remarketing. “Google products help
with a wide variety of online activities. Reading emails, watching videos,
search, consuming content etc are extensive buckets in themselves. Google enables
us to make every platform interact with each other and drive the most relevant
user interactions. This helps the movement from awareness to consideration to
purchase in a way never before,” says Saranjeet Singh, Head of Digital
Marketing. The 90day campaign gave PayUmoney the stronger ROI. When compared to
TV only, the cost of user acquisition was 56% lower with a digital only
approach. A steady growth in transactions increased the value of the digital
audience and showed long term value. The digital phase also increased
transactions with the business recording a 16% rise. They received close to 2M
views on YouTube, signifying user interest and involvement from highly
targeted, quality leads who were more likely to complete transactions. Compared
to the TV phase, PayUmoney doubled their average selling price in the digital only
period. The digital phase also a recorded a 22% increase in repeat transactions
from users who were acquired during the campaign. The successful campaign with
the proven results has paved the way for PayUmoney’s future marketing
activities. Going forward, their campaigns will be digital only, and perhaps branch
into mixed mediums for certain target groups. “We have started looking at
online marketing as the prime funnel to create online brands and drive business
growth. For a payments player in a fairly competitive industry, a valued online
payment isn’t a customer habit yet. It's confined to an evolved section and
digital platforms leveraged in the right manner is the goto for internet brands.
We are excited to start this journey and set the tone for the industry,” says
Nitin Gupta, CEO.
Answer
the following question.
Q1.
Give an overview of the case.
Q2.
Give advantages of devising the phased marketing approach.
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.
Analyze the effects of subsidiary brands on the core brand.
Q2.
Discuss the dangers of brand dilution and cannibalization.
CASE STUDY (20 Marks)
The fullsize pickup truck segment is
considered to be the most profitable and the fastest growing segment in a slow
growing US automobile industry. It is also highly competitive with players like
Ford and General Motors dominating the industry. Over the years, Toyota, the
second largest automaker after General Motors, has established a strong
presence in the car segment of the US auto market. Following this, the company
aimed to increase its share in the light truck segment through the launch of a
new pickup truck model in early 2007, called Tundra. In the market for pickup trucks,
the buyers were known to be tremendously loyal to trucks made by American
companies. Thereby, in its efforts to market Tundra, Toyota promoted the pickup
truck at events considered to be traditionally American such as NASCAR racing,
fishing tournaments, country western
concerts, etc. The company also made an
investment of $850 million to establish a new plant at San Antonio, Texas, for
manufacturing only Tundra vehicles and set a sales target of 200,000 units in
2007.
Answer
the following question.
Q1.
Analyze the trends, consumer profile and behavior in the light truck segment of
the US auto industry
Q2.
Discuss the marketing strategies adopted by Toyota for the promotion of Tundra
2007
Q3.
Analyze the opportunities and challenges facing Toyota Tundra in the future.
Q4.
Give an overview of the case.
CASE STUDY (20Marks)
The entry of the Korean automobile
major, Daewoo Motors India Ltd. (Daewoo) in the Indian passenger car market was
heralded as a milestone for the industry. This was because Daewoo was the
multinational to challenge the might of the market leader Maruti Udyog Ltd.
(MUL). Daewoo's first vehicle, the 1500 cc Cielo was launched in three versions
(Cielo, Cielo GLX and Cielo GLE) in July 1995. Consumers who until now had no
other option besides the Maruti Esteem in the midsize segment (Refer Exhibit
I),
rushed to buy the Cielo. Bookings for
the three models reached 114,000 in a short span of time. With the car
registering high initial volumes and its plans to become a Rs 100 billion
company by 199899, Daewoo seemed all set to give MUL serious competition. However,
Daewoo was in for a major shock as around 70,000 customers cancelled their
bookings within a few months. Daewoo had predicted an annual turnover of over
Rs 10 billion and sales of 20,000 cars by March 1996 but managed to record a
turnover of Rs
6.05 billion and sales of only 9,044
cars. During April December 1996, only 13,776 Cielos were sold against the
targeted 52,000. During April 1997February 1998, 9006 Cielos were sold, a
decline of 41% from the corresponding period previous year. In 199899, 5500
Cielos were sold, a fall of nearly 50% over the previous year. The entry of
competition in form of General Motors and Ford in 1996 and the general downturn
in the midsize car segment added to the company's problems. Daewoo recorded a
loss of Rs 351.4 million in the six months ended March 1998 as sales declined
to Rs 1.22 billion from Rs 2.7 billion in the corresponding period in the
previous year. Daewoo was surprised to realize that its globally tried and
trusted formula of providing excellent service with low prices had failed
miserably in India. Daewoo's miseries nevertheless did not come as a surprise
to the industry watchers. Even while Daewoo had announced its targets at the
time of Cielo's launch, they were termed 'too ambitious and unrealistic' by
analysts. Media reports stated that Daewoo itself was responsible for the mess
it had landed itself in. A Business Standard report mentioned, "A close look
into the performance of the company from the drawing board stage throws up a
perfect case study on what an organization should not do."
Answer
the following question.
Q1.
Give an overview of the case.
Q2.
Give reasons in detail for the failure of the marketing strategy of new
entrant, Daewoo Motors India Ltd. (Daewoo), in the automobile market.
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224
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