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Xaviers Institute
of Business Management Studies
MARKS : 80
SUB: Marketing Management
N. B.: 1) Attempt all four
case studies
2) All questions carry equal marks.
CASE 1 : TRUST TOOTHPASTE
Study the Case entitled "Positioning
'Trust' Toothpaste" and give your specific recommendations regarding the
action to be taken by the company. Your decision must be based on a careful
analysis of the situation given in the case and your answer should be precise
and up to the point.
Positioning Trust' Toothpaste
In September 1990, Mr. Sarin, the Marketing
Manager of Deepa Products (P) Limited was wondering what marketing and product
positioning strategy the company should follow for launching their two new
brands of toothpaste. Trust Night and Trust Regular in a market which was
becoming highly competitive.
Deepa Products (P) Ltd. was one of the
successful manufacturers of various types of packaging materials for both
industrial and consumer products. Established in 1960, the company has shown
substantial growth over the years. Much of the company's growth was attributed
to the high quality of its products and also the systematic manner in which its
marketing decisions were made.
In 1990, keeping in view the growing market
for consumer goods, the top management of the company decided to diversify into
new consumer products areas. In the first instance the company thought of
entering into the toothpaste market. Depending upon their success in the
market, the company would decide their expansion plans into other areas of
consumer goods sector.
The company chose to enter toothpaste market
simply because the market for toothpaste was growing fast almost by 15 to 20%
in India and it provided enough
profit opportunities. The market was dominated only by a very few players.
Further Mr. Sarin felt that there was scope for capturing a significant market
share in the growing toothpaste market, since the company's products had some
unique features to meet the emerging new market segments.
Questions
1. What marketing strategy should be
designed by Mr. Sarin to be able to achieve the targeted 5% market share?
2. How should Deepa Products (P) Ltd.
position Trust Regular and Trust Night to induce customers to buy it? What
should be the key benefits of their toothpastes?
3. Should the company price its products
economically, or should it aim for premium pricing?
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CASE 2: THE CATERPILLAR TRACTOR COMPANY
Caterpillar Tractor Company (CTC) is a large manufacturing firm
headquartered in Illinois, USA. Its familiar 'CAT" logo and
yellow paint are known throughout the world. Indeed in its business, CTC has an
estimated 37% of world market. Its closest rival, Japan's Komatsu has an estimated 15%.
A multinational company CTC has manufacturing and dealer representatives
throughout the world. The products, which the firm designs, manufactures and
markets, can be classified
into two basic segments:
Earth moving, construction and materials handling
equipment-track type tractors, bulldozers, rippers, track and wheel type
loaders, pipe layers, wheel dozers, compactors, wheel scrapers off highway
trucks and tractors, motor graders, hydraulic excavators, long skidders, lift trucks
and related parts and
equipment.
Engines– for earth moving and construction machines on highways
trucks, marine, petroleum, agricultural, industrial and electric power generation systems.
Engines either, diesel or natural gas, have power ranges from 85 to 1600
horsepower or in generator set versions from 55 to 1200
kilowatts. Turbines range
from 10 to 7,900 kilowatts.
CTC's market success is based to a great extent on its
four-point product strategy. First, advances technology is incorporated into
machines so that users derive optimal productivity and efficiency. To maintain
the flow of product application the organization commits hundreds of millions
of dollars each year to research and development. A second product guideline is
quality. Within the last ten years several billion dollars have been spent on
plant and equipment to ensure reliability in the hostile environments the
machines endure. The third aspect of product strategy is to offer a full line of products. This implies machines
capable of performing on job sites as small as a residential plot or as
large as the Alaskan product
line offers over 100 different machines within nearly infinite
option/modifications. The fourth and final principle of the product strategy is to design and
build only machines that can be produced on an assembly line, to take advantage
of manufacturing expertise and efficiency of Caterpillar plant and to provide
significant economies of scale.
Questions to be answered
1. How important is new product
development to Caterpillar?
2. What sources of new product ideas
might a company like caterpillar use?
3. Evaluate CAT as a brand name.
4. Evaluate each of the four points
of CTC's strategy.
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CASE 3: ABC HANDLOOMS Ltd.
ABC Handlooms
Ltd. (ABC) was established in the year 1991 to manufacture and market handloom
furnishings throughout the country. Over the years, it has developed a wide
network of handloom units in and around Delhi. ABC manufactures a wide
range of furnishings catering to the needs of different strata of society. The
pattern of sales of the company during the last three years was as under:
|
State |
|
Percentage Sale |
|
Punjab Haryana U.P. M.P. Rajasthan Other states
and Union territories |
|
65 5 10 10 5 5 100 |
The market for
furnishings was highly competitive. ABC had not only to face competition from
well established houses but it had also to face competition from various state
government corporations. Besides, the product
had to face competition with the imported material, which was freely available. Prices of different types of
furnishings differed widely. Private and cooperative channels
marketed different brands. The Coops accounted for more than 60 per cent of
material sold. Though there was no brand loyalty yet a large manufacturer in
Western India was able to market similar products at a marginal premium in
Rajasthan and Madhya Pradesh.
Questions:
1. How do you explain the
present situation faced by the company?
2. Was it a good idea to
enter into a three-year contract with the Cooperative Society?
Why?
3. Is it possible to renew
the contract with the Cooperative Society? If so, how? Suggest a detailed
programme on a crash basis with the budget constraint of Rs. 50, 00, 000.
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CASE 4: APEX ELECTRICAL COMPANY LTD.
Mr. Nathan, Sales Manager of Apex Electrical Co. Ltd. had
just received a proposal from his Regional Manager at Bangalore for opening a sub-office in Madras and was considering what would be the
best decision in the company's short run as well as long run interest.
The
company was in the business of manufacturing and marketing electric
motors of a wide range of horse power that could be used as a prime mover in numerous applications. The
company's factory and head office were situated in Bombay and it had its branch offices at New Delhi, Calcutta and Bangalore,
each headed by a Regional Manager.
The
Regional Office at Bangalore was responsible for sales in Karnataka,
Tamil Nadu and Kerala. The company also maintained a godown at
Bangalore which was used as the
stocking centre for feeding sales in the complete region. The company's
distribution network had grown over several years and as such there was no one rule by
which the arrangements could
be explained. In Karnataka, due to the proximity of the Regional Headquarters,
the distribution, network was closely controlled by the Regional
Office. Company had several dealers covering the State and they all
purchased goods directly from the Regional Office. All the dealers got a fixed percentage of discounts. The
ultimate prices to the consumers were fixed by the company. Each dealer covered
a specific area which was generally one to several districts and the company
discouraged one dealer interfering
in other's territory. However, in main cities of Bangalore and Mysore, there was more than one dealer who
collectively covered the sales in the city. The company salesmen regularly
contacted the dealers and the office
maintained good marketing information.
Questions:
1. What decision would you take if you
were in place of Mr. Nathan?
2. Do you feel the proposal of a new
sub-office is economically justified against the stated policy of the company?
If yes, why? If no, then how could it be made justifiable?
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