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Subject : Marketing Management |
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Case
Studies
Case
(20
Marks)
Everyone connected with the
industry of bath room fittings can vividly recall the catastrophic failure of a
beautiful mo of English WC launched by Bharat Sanitary ware a couple of months
back. The Italian design was aesthetically supe occupying less space and using
much less quality of water to flush it clean. It was launched with fully
coordinated ran of bathtub, washbasin geysers, floor & wall tiles and a
host of other accessories. A leading MR firm had conduct market researches in a
metro and a mini metro town to ascertain consumer preferences & profile. A
huge potential w predicted among up market buyers. Competition was virtually
non-existent In spite of all the precautions the prod bombed. The manufacturer
had to hastily withdraw it incurring heavy loss. The main reason of failure was
analyzed the complicated process of installation in the existing bathrooms. It
turned out to be little difficult for the illitera plumbers to carry our
installations. And they conveniently recommended other brands. For a similar
product you ha been assigned the task of formulating launch strategy.
Answer
the following question.
Q1. How many types of pricing strategies do you know? Explain & what
should be the pricing strategy for this product?
Q2. If you were the marketing manager, which
marketing strategy will you implement? Justify your answer
Q3. Suggest which all groups of people you will
interview to find out buyer preferences & needs of channel members. List
key information that you would like to obtain from different groups of
respondents.
Q4. Discuss and list as per importance the various
options available to you for promoting this product.
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Case
(20
Marks)
Sunshine Lumieres was
established in 1992 in Bangalore, India to manufacture lamps mainly for
household use. T company was established by Dr. Srinath Kashyap who had
extensive experience in the lamp industry with the ma multinational
manufacturers in India and overseas. Sunshine was involved till now in
manufacturing and supplying lam for consumer and household use under various
brands for the leading lamp companies. Dr. Kashyap was involved looking after
the manufacturing and marketing functions while his wife looked after the
Finances and the HR functio The Company had a total of 50 employees and grossed
revenue of Rs.9 crores in 2005. The market in India was lar and growing due to
the increasing affluence and the massive rural electrification programmes of
the Government. P liberalization in 1992; the market dynamics slowly started
changing due to increased competition from leading bran looking to capture
larger market shares. Dr Kashyap felt it was time to diversify this business
and get into newer prod 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 lam Miniature lamps Energy efficient lamps like CFL lamps,
LED lamps etc. While the large MNCs were present in segments, most local
manufacturers were involved in the consumer and household lighting. Typically,
household lam sold at around US$0.25 per piece at the retail level while the
Industrial and commercial lamps sold at prices upwards US$25 per piece retail.
Sunshine lumeries hired Dr. Mohan Das, a bright Engineer from IIT and MBA from
a leadi Business school. After working in some leading companies, Mohan felt it
was time for him to exploit his innovative sk and create world class products.
In a very short span of time after joining Sunshine, Dr. Das was able to
produce so very interesting and technologically advanced products. Dr. Kashyap
felt that over time , in low value products li lamps, the large MNC’s would be
forced to give way to players from developing countries like China and India, w
would over time establish the products under their own brands. Establishing the
Sunshine brand over time was therefo vital for the future. Meanwhile, Mohan had
designed a slew of new and innovative products – comparable with the b in their
class in the world, in the energy efficient and Industrial lamp categories.
Given suitable financial investmen these could take the company’s revenues to
over Rs.100 crores by 2008 between the domestic and export markets. he looked
out of his office window, enjoying the light drizzle and cool breeze of
Bangalore, Dr. Kashyap’s realized that was at a point of inflexion. If the
current opportunities were exploited fully, it could lead to great fortunes for
himself a his family. He could even take the company public and unlock the
value of his holdings. However, it would also me that Sunshine would have to
evolve into a professionally managed company and have a larger number of
employe
He wondered how he should go about structuring
his Sales and Distribution organization so as to grow manifold bo
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domestically and overseas
within the next three years before taking the company public. Dr. Kashyap was
convinc that he needed to seek professional advice. He invited Dr. Vasant Rao,
an old friend and leading Management expert 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?
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(20 |
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Marks) |
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Kaggi’s Food Co (KFC) is a
large producer & seller of edible oils, flour, pulses, spices & some
other food items. Ov past ten years KFC could establish itself well with popular
brand names for its produce. Oil brand “Sunrise” from KFC very popular as low
fat, healthy cooking medium. KFC has three mills, one each in Meerut, Dehradun
& Lucknow. avail tax benefit only spices are procured from small
manufacturers who carry out their operations under str supervision of KFC
quality team. All other items are manufactured in company’s own mills. SO far
entire produce of K is sold easily in northern region of seven states through
loyal set of distributors & retailers. For past three years KFC h started
feeling the pressure of competition, more in oil & flour brands. Apart from
bundling free soap, detergent, pet etc., competitors have increased distributor
& retailer margins on volume off take. The young and professio management
team of KFC is confident of achieving targets and enjoying the scene. KFC mills
are not very moder nevertheless, they are maintained well. Breakdowns and
production stoppages are very rare. KFC has recently bough large salt
manufacturing facility in a coastal town. This mill produces good quality
common salt on contract basis for t different brands. The previous owner found
this arrangement very neat with assured and quick turn over-even thou the
profit margin is low. KFC did not wish to change the arrangement immediately,
but thought building own brand salt will not be difficult. It will increase
profit margin also. Added attraction is that branded salt can easily be sold
throu existing channel. Market for branded salt is already over crowed. There
are many national and local brands. The leadi brand TATA is there for over
30years. There are other big national brands with deep pockets for promotion
such Nirma, T-series, Dandi, Catch etc. Each brand is trying to take a
particular but different position. While common plan 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?
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Marks) |
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Mr. Ramaswamy
after completing post-graduation from IIM, Ahmedabad in 2006 worked for MNC for
about one ye However, he soon realized that he is not meant for doing job for
someone and he decided to go for restaurant busine His vision is to establish
chain of restaurants in all major cities of the world. To make the dream come
true , he start with a small restaurant in Mumbai and selected location having
dense office area. The residential area is far from t office area. He initially
started with luxury type of restaurant with lot of rich ambience and interior
with high priced men After lapse of nine months, the restaurant failed to fetch
the customers. He started analyzing where the things ha gone wrong. His restaurant
is quality restaurant and still failing. After analysis, he could make out
following observatio
a) Restaurant is located in office area and all the
office staff leaves mostly around 8 pm. They bring their
lunch w
them. b) Residential area
is far which is consisting of mostly middle class families. c) Spending
capacity of customers low. d) Business visitors are also less because of the
nature of corporate offices. After due thought, he changed t restaurant into a
fast-food outlet. Soon, it started fetching the customers and he is having
happy time now. However, feels that there is low profit margin and less growth
opportunities, if he does not do anything. Now to enhance growth, is planning
for awarding franchisees to other outlets in the city and beyond.
Answer
the following question.
Q1. In your opinion, is the decision of changing
luxury restaurant into fast food outlet is correct one? If yes, how and why the
decision is correct?
Q2. Please help him to work out franchisee network
and pricing strategies. What advertising and promotional methods do you suggest
to attract and retain the customers?
Print Question with PDF
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