AssignmentMarketing Management MB0030

(3 credits)60 Marks

Set 1

Q1. Analyze the existing business portfolio of any one company using BCG matrix, GE matrix, and Ansoff model.

Ans. Designing an appropriate business portfolio: After setting mission and objectives, management will develop its business portfolio. Business portfolio is the right mix of businesses that company operates and products that offers to customers. Portfolio analysis is the process by which company analyze its products and businesses.

Company develops their business portfolio in two steps

a. Analyze the existing business portfolio and decide which business should receive more, less or no investment.

b. Developing the new business portfolio for future to meet growth opportunities and eliminating the unprofitable portfolios.Analyzing the existing business portfolio:The current business portfolio of the company is analyzed by the businesses in which it operates. To make it clearer, let me take an example of ITC group. The company operates in FMCG, hotels, paper boards, specialty papers and packaging and agribusiness. These businesses are independent from each other and have their mission and objectives separately. These subsidiaries of organizations are called as Strategic business units (SBU)Strategic business unit: The unit of the company that has separate mission and objectives and that can be planned independently from other businesses.Characteristics of SBU.1. It may be brand, or a product line or separate division of the company.2. It is having distinct mission and objectives.3. It is managed by separate executive team.Strategic planning models used in assessing the existing businesses:1. BCG matrix (Boston Consultancy Group)2. GE matrix (General electric)BCG matrix: This model is used to identify company’s SBU’s position in the market. This model identifies the SBU’s strength, weaknesses, opportunities and threats on the basis of market growth rate and relative market share. This model is also known as growth share matrix.

Relative Market Share Axis components:1. Market growth rate: The rate at which market is growing2. Relative market share: Market share of the SBU divided by the market share of the largest competitor.Model components:Star: This category represents the high market share and high industry growth. SBU’s in this category require large investment to defend their position. SBU will turn as cash cow after some time.Cash cows: This category represents the low growth rate and high market share which is the characteristic of SBU operating in mature industry. Here company needs less investment to hold their position. Hence it generates more cash or in management terms we say cash cow can be milked.Question Mark: This category represents high market growth and low market share. SBU’s in this category has two options, either to invest heavily and bring them to star position or divest / liquidate from that position. Market growth rateLow HighDogs: SBU’s in this category generates less cash for the company as it operates in low growth and low market share. Usually companies will not invest in this category and try to liquidate or divest.BCG matrix for ITC1. SBU: FMCG Industry growth rate: 24% (AC Nielson retail audit report 2007)Company growth rate: 50% (the Hindu business line 19 th January 2008)Company’s market share: 8% (outlook business)Largest competitor share: HUL: 54% (outlook business)Relative market share= 0.142. SBU: Paper boardIndustry growth rate: 7.2% (the Hindu business line 27 th May 2007)Company growth rate: 11% (the Hindu business line 19 th January 2008)Company’s market share: 55%Largest competitors share: BILT 35%ITC’s FMCG segment analysis shows that though it is market leader in some categories their overall relative market share is 0.14. Company is in the high growth low relative market share area i.e. questioning mark position. ITC should invest heavily to convert its SBU position into star.

ITC’s Paperboard industry is in low growth and high market share category i.e. in cash cow segment. It should plan for investing the cash generated from this position into other businesses.GE matrix:1 Management can use the GE business matrix to classify SBU’s on the basis of two factorsa. Market attractiveness: Market size, entry barriers, competitors, technology and profit margin are some factors used to analyze the market attractiveness.b. Business position can be determined on the basis of market share, SBU size, R&D capabilities and cost controls. Each cell in the model represented by the particular strategy namely, invest strategy, protect strategy, harvest strategy and divest strategy2 Invest strategy: In this position SBUa. Should receive ample resourcesb. Should support by well financed marketing efforts.3 Protect strategies: SBU’s in this position shoulda. Allocate the resources selectively.b. Develop strategies which help in maintain its market position.c. Generate cash needed by other SBU’s.

4. Harvest strategy: SBUs should not receive substantial new resources and if required, sell them.5. Divest strategy: SBUs which falls into this category should not receive any resources and sell I or shut it as early as possible.Developing the new business portfoliosAfter analyzing the existing business of the company, let us discuss company’s future plans i.e. growth or downsizing. Company adopts growth strategies to become more competitive in the market, Market attractiveness Low Medium High tap new opportunities and become preferred employer. Downsizing is used when the product or market became unattractive to it. The Ansoff Product Market Growth Matrix is a marketing tool created by Igor Ansoff and first published in his article "Strategies for Diversification" in the Harvard Business Review (1957). The matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing and/or new markets.Ansoffs model of product/ market expansion.

a. Market penetration: A strategy used in increasing the sales of company’s existing products without modifying it in the existing market.Characteristics of market penetration.1. Serve customer with existing products by opening new stores.2. Increase the promotion activities to increase the consumption.3. Improve the service offerings.Cafécoffee day a reputed coffee chain in south India, started its operation in brigade road, Bangalore, in the year 1996. It offers different varieties of the coffee to its existing customers. Today it is having 100 stores in Bangalore.b. Market development: In this strategy company identifies the new markets to sell their existingproducts.In case of market development company identifies and develops new markets for its existingProducts Café coffee day, enthused by the success of offering a world-class coffee experience, has opened a Café in Vienna, Austria and is planning to open other Cafes in the Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the coming months.c. Product development: In this strategy, company identifies new product and sells them existing markets.Café coffee day added quick bites and ice-cream in their menu to cater to the needs of customers.d. Diversification: A strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets.Café coffee day started offering tea and cold drinks in its highway café retail outlets. These highway café outlets offer excellent service to the travelers on the high way.Downsizing: Eliminating the unprofitable products of the company from its product line In the year 2000 M.S. Banga then chairman of Hindustan Unilever limited (HUL), used power branding strategy to improve the sales and productivity. He reduced HUL’s number of products from 110 to 35.

Q2. Discuss the Macro environment of a pharmaceutical company

Ans.

India has become an attractive destination for R&D, with opportunities emerging in this new market post- WTO (World Trade Organization) accession. India's industrial development has

accelerated and its pharmaceutical industry has become one of the most successful. Driving factors attracting international investment include:1WTO accession2 low labor costs3 tax incentives from the Chinese government4 R&D collaboration opportunities.The Chinese pharmaceutical market is split almost equally between chemical and biotechnology products at 70%, and TCM (traditional Chinese medicine) products at 30%. The Chinese government has changed the face of the industry dramatically by: implementing WTO guidelines and protection for intellectual property rights shifting authority from the Ministry of Foreign Trade to the State Food and Drug.

Administration (SFDA): The SFDA has imposed higher drug registration requirements for imported as well as locally manufactured products and promoted general compliance with the Chinese Good Manufacturing Practice (GMP) standards for domestically produced products. A number of domestic players could not withstand this pressure from the government—many of them closed their businesses whilst others looked to upgrade their technologies through tie-ups with foreign companies. The total value of the market in India was US$12.8 billion in 2005. Antibiotics have slowly decreased in sales; however, they still represent one-third of the whole market. This is a large market share compared with the other therapeutic classes. The three top therapeutic classes (antibiotics, circulatory and alimentary tract) represent around 60% of the whole market.

India's TCM industry possesses great potential. The key issue is how to inspire this, which requires government attention and enterprise efforts. On one hand, the government must provide support with its policies; on the other hand, the government should strengthen its recommendations on Chinese medicine planting. India possesses 12,807 kinds of medicinal materials from natural sources out of which, 11,146 are of plant origin, 1,581 are from animals, and 80 are from minerals, including more than 5,000 clinically validated folk medicines.Compared with the big global players, domestic vaccine producers have small-scale production, are backward in production technology and have high operation costs. In India, clinical trials can be conducted at a much lower cost than in the West. India has a pool of highly educated doctors who are keen to participate in clinical trials. Although India is beginning to accept foreign clinical data, almost all new drugs entering the country must conduct domestic testing in some form. At present, Class I, II and III drugs must undergo phase I, II and III trials, although some Class III products are exempt from phase I trials.

The major forces attracting foreign investors to India are: quality of the clinical data reasonable costs ability to select patients rapidly.

Despite the huge growth potential, commercial health insurance still plays a minor role in the local market, covering only a meager 10% of local residents' total medical expenditures. Health insurance divides into two types in India:

Rural Health Protection System. Urban Health Protection System Government Insurance Scheme—covers government employees Labor Insurance Scheme—covers enterprise employees.

In India, only 15% of the population has health insurance. Most of the rural population is not covered.

The Chinese R&D investment approach has been shifting from technological alliances towards international mergers and acquisitions. Overseas companies in India have established 700 R&D centers. Pharmaceutical regulation in India is based around the Drug Administration Law. The government first implemented this law in 1984, with the last major amendments taking place in 2001. In this emerging market, intellectual property protection is a big challenge. When India became a member of the WTO in 2001, it promised to uphold the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Accord, which mandates that drugs receive at least 20 years of patent protection. Political and legal reluctance to uphold the patent rights of foreign investors is not the only issue. Intellectual theft comes in many forms, including small scale reverse engineering and copying, systematic reverse R&D and reverse engineering, and counterfeiting. The major distribution channel in retail market is the hospitals, with 80% of pharmacy products going to patients through hospitals. Biotechnology globally has experienced rapid growth in recent years and promises enormous potential for future growth. In India, the biotechnology companies have developed more quickly than the pharmaceutical companies have.

Q3. Explain the components of MIS

Ans. Components of MISThe following diagram shows a typical Marketing Information System with its components. Which are?1. Internal Records System2. Marketing Intelligence System3. Marketing Research System4. Analytical Marketing System

Internal Records SystemThis includes information on (i) Order to payment cycle and (ii) sales information systems.Order to payment cycle has a system which records, the timing and size of orders placed by consumers, the payment cycle followed by consumers and the time taken to fulfill the orders, in the shortest possible time. Customers place order through sales people and companies dispatch the goods and receive payments directly or through bank. A proper record system pertaining to order – to – payment cycle management helps mangers to decide on production and dispatch schedule, inventory and accounts receivable schedule and also logistics and distribution management schedules,Sales Information Systems record everything in the sales Department, starting from Sales Call Reports to prospects history to Sales territory and quota information for better sales planning and forecasting purpose.Marketing Intelligence SystemThis is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. This system supplies ‘happenings’ data unlike Internal Records System which supplies ‘results’ data. Marketing managers collect data from published sources like books, magazines and journals; by talking to customers, intermediaries and sales personnel. Some companies appoint specialists to gather consumer and competitor information, who does mystery shopping to monitor the performance of their own or competitor’s dealers. Competitor information can also be obtained by buying their product, attending their press conferences, trade shows and reading their annual reports. Companies purchase commercial information from outside suppliers and market research agencies like IMRB, ORG – MARG to obtain competitive data on their sales, advertising expenditures etc., besides their own.Marketing Research SystemThis is the third component of MIS. Marketing Research provides information to marketing manager when he/she encounters marketing problems. This may involve conducting Marketing Research survey by collecting primary data. These surveys may be conducted by the marketing department itself or a it can hire services of an external marketing research agency.Analytical Marketing SystemsAlso known as Marketing Decision Support systems (MDSS), this is a coordinate collection of data, systems, tools and techniques with supporting software and hardware by which an

organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. All the data which is generated through the other three systems described above are stored in a data base. The storage and retrieval capability of decision support system allows the collection and use of a wide variety of data throughout the company. Senior managers can access the data base and continually and monitor sales, markets, performance of the sales people and other marketing systems as well.Q4. Explain the Henry assael model of buying decision behavior.

Ans.Henry Assael Model.

Complex buying behavior: customers who are representing this behavior are highly involved in the purchase of the product or service. The process became complex as difference between brands are very high. For example, customer who wants to purchase refrigerator would like to know the meanings of defrosting, door lock, digital temperature control etc... The price of the product usually high let me show you the comparison of three brands and significant difference between them.

From the above example it is clear that marketer should first develop the belief about the brand, provide the information and differentiate the company brand from others. In the above example you can see both Akai and LG don’t have water dispenser while Electrolux have. Both LG and Electrolux have moisture and humidity control while Akai lacks it. Customer would like to know what these features are and how they add value to the product.Dissonance reducing buying behavior:The behavior exhibited by the customer when product purchase requires high involvement but only few differences exist. For example, customers who want to purchase CTV will not find many differences between the brands but the price of the product and its technicality makes customer to involve more. One of the major disadvantages of this type of behavior is customer will show post purchase dissonance which is very difficult to control.Variety seeking buying behavior:When there are significant differences between the brands existing but customer will not involve more while purchasing, marketer identify this behavior as variety seeking buying behavior. Let us discuss the purchasing behavior of customer for biscuits. There are many varieties of biscuits available. One can purchase salt biscuits, cream biscuits, Marie biscuits, and milk biscuits of Britannia, Parle, ITC sun feast and others. The customer who purchased Britannia tiger earlier may purchase Sun feast cream biscuit next time. This doesn’t mean that quality of Britannia tiger is inferior to other brands but customer would like to try the varieties available in the market. In this situations marketer should undertake following stepsa. The market leader should encourage customers to buy repeatedly.b. Make the product available and visible to the customer in the shopping places.c. The firm who are not market leader should come out with sales promotion techniques to encourage customer to purchase the product.Habitual buying behavior:The low involvement between the brands and few differences between the brands leads to the habitual buying behavior. For example spice powder marketed by MDH, Everest or MTR have very few difference between them and customer do not search the information to purchase particular product. Marketers whose customer represents this category should follow below listed strategiesa. Use price and sales promotions to stimulate product trial.b. Use more visual aspects than the wordings in the advertisementsc. Television is the better media for this type of products.d. Use classical conditioning theory to create advertisements.

Q5. Discuss the segmentation strategy of a cement company

Ans.

A Cement company may obtain its segmentation strategy as follows:

1. Understanding needs and preferences of consumers -- Having housing, infrastructure, and commercial construction, as demand drivers, the company analyze the needs and preferences of consumers in these sectors.

2. Grouping customers based on their needs and preferences -- Customers with similar needs and preferences can be included in one segment.

3. Targeting the segment that the company can best meet the needs and preferences of – The

company should target the customers, of which it can meet the needs and preferences. i.e. customer needs higher-strength or low price.

4. Branding the commodity -- Though being a commodity product, branding is important for a cement company. The company needs to position its brand among Architects and Builders rather than household individuals.5. Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment.

6. Case study

Software pricing: issues of client billing Infosys, one of the major IT companies in India, has developed a new method of pricing software maintenance project. The new method is called as ‘ticket – based pricing. The customer payment will be based on three types of client request or ticket. First, customer may request for small enhancement in the software application. Second, customer may request for big enhancement in the software application and third, request may be for a bug fix. Earlier the methods used for pricing were ‘fixed price’ and ‘time and material-based pricing’. Under the ‘time and material based pricing’, customers are billed based on the number of man-hours spent on a project, while under the fixed price, the customer pays an agreed price that doesn’t vary with the manpower deployed on the project. Infosys developed this new pricing strategy after examining the current pricing methods. Software application methods become more stable after some time. If the client opted for fixed pricing and his request for software maintenance reduced, still has to pay fixed maintenance charges. Ticket based pricing will provide flexibility to the client. Many IT majors have been trying to decrease the dependence of revenue growth on manpower addition. But this is for the first time such an attempt has been made to bring a transaction-based pricing model. The new move is expected to increase the revenue without a proportional increase in the number of employees. Contrary to this view many industry observers still feel that fixed price or time and material based pricing provide continuous revenue. The excess revenue available from these two methods can be used for reserves or hedging. In case of ticket based pricing client has to negotiate with the company every time. a. Do you think ticket based pricing will provide continuous revenue to Infosys in the long term? Comment b. Compare three pricing strategies discussed here and choose any one as your choice

Ans:

a)This is going to be applicable only for maintenance projects and might end up in much more complexity in managing simple maintenance projects as there might be many categories of the tickets. This will end up in complex financial dealing and might cost more to clients, than what FP or TM costs are. So I think that ticket based pricing will provide continuous revenue to Infosys in the long term with some risk of penalty for delay in fixing the bugs and some opportunity of rewards for flexibility for the customers.

b) Comparison of TP, FP and T&M based pricing:

Ticket Based Pricing:

This is new method of pricing strategies introduced by Infosys. The customer payment will be based on three types of client request or ticket. First, customer may request for small enhancement in the software application. Second, customer may request for big enhancement in the software application and third, request may be for a bug fix. Ticket based pricing will provide flexibility to the client. This

has been made to bring a transaction-based pricing model. Ticket based pricing will provide flexibility to the client.

Fixed Pricing:

Under the fixed price, the customer pays an agreed price that doesn’t vary with the manpower deployed on the project. If the client opted for fixed pricing and his request for software maintenance reduced, still has to pay fixed maintenance charges.

Time and Material based Pricing:

Under the ‘time and material based pricing’, customers are billed based on the number of man-hours spent on a project.

The ticket based pricing is favorable to customer point of view because it gives the flexibility to customer to choose different kind of tickets depending on their needs. Every time customer buys ticket can negotiate with the vendor.

AssignmentMarketing Management MB0030

(3 credits)60 Marks

Set 2

Q1. Explain the relevance of VALS to Marketing

Ans.

One of the most used psychographic profiling schemes is called VALS TM. Developed by SRI International, Inc., its first version groups the entire U.S. population into eight groups, based on the identities they seek and implement via marketplace behaviors.

The Eight VALS TM Group: Using the self-orientation and resources dimensions, VALS defines eight segments of adult consumers who have different attitudes and exhibit distinctive behavior and decision making patterns. These segments are Innovators Thinkers, Achievers, Experiencers, Believers, Strivers, Makers and survivors Innovators are successful, sophisticated, active, take-charge people with high self-esteem and abundant resources. They are leaders in business and government and are interested in growth, innovation, and change. They seek to develop, explore and express themselves in a variety of ways, sometimes guided by Principle and sometimes by a desire to have an effect or to make a change. They seek to develop, explore and express themselves in a variety of ways, sometimes guided by principle and sometimes by a desire to have an effect or to make a change. Image is important to them, not as evidence of status or power but as an expression of their taste, independence, and character. They possess a wide range of interests, are concerned with social issues, and show a cultivated taste for the finer things in life.

Thinkers are mature, satisfied, comfortable, reflective people who value order, knowledge, and responsibility. Most are well educated and in (or recently retired from) professional occupations, content with their career, families, and tend to center around the home. Thinkers have a moderate respect for the status quo institution, but they are open minded to new ideas and social changes. They tend to base their decision on firmly held principles and consequently appear calm and self-assured. Thinkers are conservative, practical consumers, and the universal values of performance, service, and price are more important than person values (e.g., social and emotional values).

Achievers are successful career ad work oriented people who like to feel in control of their live. They value predictability and stability over risk. They are deeply committed to work and family. Work provides them with a sense of duty, material rewards, and prestige. Their social lives are centered on family, church, and career. Achievers live conventional lives are phonically conservative, and respect authority and the status quo. Image is important to them: they favor established prestige products and services that demonstrate success to their peers.

Experiencers are young, vital, enthusiastic, impulsive, and rebellious. They seek variety and excitement, savoring the new, the offsets, and the risky. Still in the process of formulating life values and patterns of behavior they quickly become enthusiastic about new possibilities but are equally quick to cool. At this stage in their lives they are politically uncommitted, uninformed, and highly ambivalent about what they believe. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiences are avid consumer and spend much of their income on clothing, fast food, music, movies and video.

Believers are conservative, conventional people with commitment to family, church, community, and the nation. Living by a moral code is very important to them. As consumers, Believers are conservative and predictable and favor American products and established brands. Their income, education, and energy are modest but sufficient to meet their needs.

Strivers seek motivation, self-definition and approval from the world around them. They strive to find a secure place in life, unsure of themselves and low on economic, social, and psychological resource. Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don’t have enough of it and often feel that life has given them a raw deal. Strivers are impressed by possessions, but what they wish to obtain is often beyond their reach.

Makers are practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work and physical recreation and have little interest in what lies outside that context. Makers experience the world by working in it, building a house, raising children, fixing a car, or canning vegetable and have enough skill, income and energy to carry out their projects successfully. Makers are politically conservative, suspicious of new ideas, respectful of government authority and organized labor, but resentful of government intrusion on individual rights. They are unimpressed by material possessions other than those with a partial or functional pursuing pressed by martial possession other than those with a practical or functional purpose, such as tools, utility vehicles, and fishing equipment.

Survivors tend to be chronically poor, ill-educated, low skilled, elderly and concerned about their health. Preoccupied with the urgent needs of the present moment, they do not show a strong self-orientation. Their chief concerns are for security and safety. Survivors are cautious consumers. They represent a very modest market for most products and services but they are loyal to favorite brands.

Q2. Critically analyze the product mix strategies of a beverage company

Ans.

Product Mix of Pepsi Beverages Company:

Pepsi Beverages includes 4 product lines as Pepsi, 7up, Mirinda, Mountain Dew. These four product lines cover the majority of the market areas. These product lines are available on different lengths and different depths to meet the demands of each type of customers.

The following table will explain each product line and its length, depth and the product mix…

Company Product Line Length Depth Product Mix

Pepsi Beverages Company

Pepsi:-Pepsi Regular-Pepsi Max-Pepsi Diet-Pepsi Twist

4 Pepsi Regular(5)Pepsi Max(3)Pepsi Diet(3)Pepsi Twist(3)

4

7up:-7up Regular-7up Diet

2 7up Regular(5)7up Diet(3)

Mirinda- Mirinda Apple- Mirinda Orange

2 Mirinda Apple(4)Mirinda Orange(2)

Mountain Dew 1 Mountain Dew(4)

Pepsi has length of 4 which includes -Pepsi Regular, Pepsi Max, Pepsi Diet and Pepsi Twist. Pepsi regular has depth of 5 and is available in 250 ml bottle, 330 ml can, 500 ml bottle, 1.5 liter bottle and 2.25 liter bottle. Pepsi Max is available in 330 ml can, 500 ml bottle and 1.5 liter bottle, having depth of 3.Pepsi diet is available in 250 ml bottle, 330 ml can and1.5 liter bottle having depth of 3. Pepsi twist is available in 330 ml can, 500 ml bottle and 1.5 liter bottle, having depth of 3.

Second product line is 7up. It is available in two varieties, 7up regular and 7up diet.7up regular is available in 250 ml bottle, 330 ml can, 500 ml bottle, 1.5 liter bottle and 2.25 liter bottle, having depth of 5. 7up diet is available in 250 ml bottle, 330 ml can and1.5 liter bottle having depth of 3.

Third product line is Mirinda; it is also available in two varieties, Mirinda Orange and Mirinda Apple. Mirinda Orange is available in 250 ml bottle, 330 ml can, 500 ml bottle and1.5 liter bottle having depth of 4. Mirinda Apple is available in 330 ml can and1.5 liter bottle having depth of 2.

Fourth product line is Mountain Dew. It is available in 250 ml bottle, 330 ml can, 500 ml bottle and 1.5 liter bottle having depth of 4.

Pepsi Beverages have high consistency due to the similar type of products. They have high consistency because their product line includes only beverages of different types. They have targeted different markets with their wide range of products including from smaller one to large one. Availability is good and the product is packed in different sizes to suit the need of every customer.

Q3. What is private brand? Explain private brand strategy of a retailer

Ans.

Private brands are also called as store brands. These brands bearing the store name or store selected vendor name. Basic ingredients of private labels are1. It must be a unit package: It is difficult to assign a Private Label character to, say rice sold loose from a 100 kg bag. Even though it may enhance consumer loyalty for whatever reason, it does not qualify as a Private Label product.2. Relabeling: The unit pack must bear only the brand name of the particular store or any other party the store may choose for its Private Label programme. Private labels will enhance the category profitability; increase the negotiation power of the retailer and better value creates better consumer loyalty. All retailers cannot go for the private labeling.Private labels can be introduced if and only ifa. The consumer is not getting the tangible value.b. The retailer is not making the enough returns from the sale of the branded goods.Emerging issues in private labeling:1. The private label strategy is effective, profitable and reality.2. The retailer must understand the price, quality and willingness to pay.3. The retailer must have a sufficiently large base of loyal customers in the store before introducing the private label.4. The focus must be on consumer need and not any private agenda of the retailers5. There must be stringent system for the private label production. Quality control is a must since there is no else to blame.6. Private label must work to filling gaps in the category and not target the brand leader7. Smart manufacturers may take a private label initiative of the retailer seriously and avoid value gaps in the categories as an impediment to growing private labels.Q4. Explain the partner relationship management at Airtel

Ans.

Partner relationship management @ AIRTELPartner Relationship Management

Q5. Critically analyze the five best advertisements released in this year

Ans.

On the survey through internet I found that most of the users of net find the following Indian television advertisements communicative, impressive and entertaining for the viewers.

1. Vodafone – Zoo-Zoo:

Vodafone has done it; they found perfect replacement for their little doggie (pug) advertisement with Zoo-Zoo characters.

These are cute, white and slim characters having all the fun and showcasing different features of Vodafone service. Vodafone being official DLF IPL sponsor, you can see these ads during IPL match breaks.

Interesting part is… these are not cartoon characters but real people wearing costumes and doing those crazy movements. It for sure is cool, cute and creative. Vodafone Zoo-Zoos win PETA award.

2. Idea - What an Idea Sir ji?

This advertisement has a unique quality to express the non conventional use of mobile phone. The idea of teaching children from slums reveals not only the coverage of idea cellular in rural areas but also it targets the poor buyers. These advertisements inspire our leaders to utilize mobile technology in campaigning for election.

Some ideas of this advertisement are not so practical like calling people with their mobile numbers.3. Tata Sky - Aamir Khan - Gul Panag

A good family aid, which emphasize on the recording facility in TATA SKY. It also indicates that the family problem related to TV programs will resolve by using this feature of TATA SKY.4. Insurance Co. - A happy father with his tiny kids who just start speaking.

This aid simply the visual version of YEH DIL MANGE MORE….5.Thumps Up - Twin Akshay Kumar

This aid is designed for passionate people and shows the passion of Thumps Up.

Q 6. Case study

Kurkure: Indian brand in the global market. Indian consumer food habits are different from their counterparts in the European and American markets. Add to this each Indian region itself has special snacks. Snacks some time consumed along with meals or tea, coffee and other beverages. Banana wafers, chaklis, samosas, namkeens are few examples of large list of Indian snacks. The change in the family structure is also changing the food habits in India. Increase in the nuclear families and working women enhanced the market potential of ready to eat products and branded snacks. Though the Indian snack market is highly fragmented with market dominated by home

snacks or those sold by local vendors, changing consumer lifestyle and health concern made them to look for hygienic, easy to carry and nutritious branded snacks Biscuits, potato wafers and papads are already branded and well received by the consumers. Pepsi, the late entrant in the Indian snack market decided to find niche market. In the Year 1999, the company launched Kurkure in the Indian Market. The product is developed in a way that it is having local taste and western chips. Kurkure is big success in Indian market. This made Pepsi to take this snack food to other global markets. Kurkure is already available in the Indian stores in the US and UK and Pepsi want to expand it to more stores in the existing global markets as well as expand it to other potential markets. According to the company, Kurkure will retain its basic flavor but will be adjusted to suit the local requirements. Kurkure’s success in the Indian market is mainly for three reasons namely innovative flavor, affordable price and continuous communication to consumer. To meet the regional requirements Kurkure is launched in various flavors like Masala, chilli, green chutney etc. Kurkure started stiff competition from ITC another FMCG major. ITCs Bingo is smash hit in the market. To meet the competition Kurkure launched two more varieties Kurkure extreme chili and Kurkure neem. Success of any brand depends upon its communication program. Kurkure launched programs like Chala change ka chakkar in which consumer can stay with brand ambassadors Juhi Chavla and Saif Ali Khan. Kurkure also launched communication program Kurkure chai time achievers award in which an interesting recipe will be chosen from the family and photograph of that family will be put on one million Kurkure packs. Add to all this Kurkure constantly gave the advertisements in the television media. Kurkure came out with novel ideas like branding the Indian trains like Kurkure express which runs in the holiday season. a. Explain the viability of market expansion strategy of Kurkure. b. Critically analyzes the consumer behavior towards snacks products.

Ans:

a)Success of any brand depends upon its communication program. Kurkure launched programs like Chala change ka chakkar in which consumer can stay with brand ambassadors Juhi Chavla and Saif Ali Khan. Kurkure also launched communication program Kurkure chai time achievers award in which an interesting recipe will be chosen from the family and photograph of that family will be put on one million Kurkure packs. Add to all this Kurkure constantly gave the advertisements in the television media. Kurkure came out with novel ideas like branding the Indian trains like Kurkure express which runs in the holiday season. The move will also bring enhanced brand recall for Kurkure from regular commuters. Kurkure is launched in various flavors like Masala, chilli, green chutney etc. Kurkure started stiff competition from ITC another FMCG major. To meet the competition Kurkure launched two more varieties Kurkure extreme chili and Kurkure neem. So the wide range of Kurkure provides choice for every customer.Kurkure is big success in Indian market. This made Pepsi to take this snack food to other global markets. Kurkure is already available in the Indian stores in the US and UK and Pepsi want to expand it to more stores in the existing global markets as well as expand it to other potential markets. According to the company, Kurkure will retain its basic flavor but will be adjusted to suit the local requirements.Since the Kurkure has option to adjust with local requirement with good communication program and also the availability is also good. So no doubt it will be a great success in the global market.

b) The change in the family structure is also changing the food habits in India. Increase in the nuclear families and working women enhanced the market potential of ready to eat products and branded snacks. Though the Indian snack market is highly fragmented with market dominated by home snacks or those sold by local vendors; changing consumer lifestyle and health concern made them to look for hygienic, easy to carry and nutritious branded snacks.