MB0030 Set 1 and Set 2 completed

Name: Falguni Pandit Registration No.: 520966021MBA – II SEM

Marketing Management - MB0030

MB0030

Registration No.: 520966021

Page No: 1 Name: Falguni Pandit |Registration No.: 520966021



Set – 1

1. Analyze the existing business portfolio of any one company

using BCG matrix, GE matrix, and Ansoff model.

ANS.

BCG Matrix of KFC

The need for strategy, in order to expand its existing product in very

promising markets for KFC is very essential. KFC, along with McDonalds, and

other major fast food chains have dominated the American continent as well

as else where. Since the 1950’s when the founder of KFC had a dream, of

building an empire in the fast food market, the company has undergone lots

of changes. The company has changed ownership; it has taken over from Pepsi

and passed over to Tricon, which owns Pizza hut, Taco bell and others.

Nowadays, KFC, still dominates the chicken fast food industry while has

stores in more than 100 countries operating vast profits. (De Witt 'et al.2004a)

Although, due to increased conditions of life, and differentiation of the life

style of the population around the world, there is still a lots of room for

expansion, especially in countries with large population, and high

development rate. KFC using the BCG matrix and SWOT analysis to analyze

what is the current position of the company and identify that the company has

the potentials to growth in fast food market.

In the late 1960s the Boston Consulting Group, a leading management

consulting company, designed a four-cell matrix known as BCG Growth/Share

Matrix. This tool was developed to aid companies in the measurement of all



Marketing Management - MB0030their company businesses according to relative market share and market

growth.

The BCG Matrix made a significant contribution to strategic

management and continues to be an important strategic tool used by

companies today. The matrix provides a composite picture of the strategic

position of each separate business within a company so that the management

can determine the strengths and the needs of all sectors of the firm. The

development of the matrix requires the assessment of a business portfolio,

which include an organization’s autonomous divisions ( activities, or profit

centers).

The BCG or growth- share matrix imposes a two- dimensional analysis

on management of Strategic Business Units: a comparative analysis of

business strength and an assessment of the environment. The business

strength measure is the business;s Relative Market share. The environmental

measure is the Market Growth Rate.

BCG Matrix: The market growth rate measures industry attractiveness.

Because for the case of YUM Brand, all SBUs ( KFC, Taco Bell, Pizza Hut, Long

John Silver’s, A&W) are located in the same fast- food industry, the referent

standard is the industry growth rate measured against the SBUs’ growth rate.

The underlying theory for examining market growth rate is the industry life

cycle. The BCG assumes that growth rates ( life cycle stages) affect a firm’s

finances.


Asia

?Europe

USA

Americas


Marketing Management - MB0030Placing products in the BCG matrix results in 4 categories in a portfolio of a

company:

1. Stars (=high growth, high market share)

Use large amounts of cash and are leaders in the business so they

should also generate large amounts of cash.

Frequently roughly in balance on net cash flow. However if needed

any attempt should be made to hold share, because the rewards

will be a cash cow if market share is kept. So, KFC Malaysia is

under Star position.

2. Cash Cows (=low growth, high market share)

Profits and cash generation should be high, and because of the low

growth, investments needed should be low. Keep profits

high.

3. Dogs (=low growth, low market share)

Avoid and minimize the number of dogs in a company.

Beware of expensive ‘turn around plans’.

4. Question Marks (= high growth, low market share)

Have the worst cash characteristics of all, because high demands

and low returns due to low market share

If nothing is done to change the market share, question marks will

simply absorb great amounts of cash and later, as the growth stops,

a dog.

The Characteristics of each SBU

Type SBU Strategy SBU

profits

Required

Investment

Net Cash

Flow

STAR Hold/ Increase High High -or+



Marketing Management - MB0030Cash Cow Hold High Low High+

Question

Mark

Increase/Divest 0 or - Very High or

Disinvest

High-or+

DOG Harvest or

Divest

Low or- Disinvest +

The analysis requires that both measures be calculated for each SBU.

The business strength dimension, relative market share, is included to

measure competitive advantage. The KFC is falling on cash cow where a low

growth and high market share is. So, the profit and cash generation is high and

because of low growth, investments needed should be low. The funds

received from cash cows are often used to help other businesses within the

company, to allow the company to purchase other businesses, or to return

dividends to stockholders. So the KFC should hold on what it has doing now.

Three Paths to Success (star-cash cow-question mark)

Continuously generate cash cows and use the cash throw-up by the cash

cows to invest in the question marks that are not self-sustaining

Stars need a lot of reinvestments and as the market matures, stars will

degenerate into cash cows and the process will be repeated.

As for dogs, segment the markets and nurse the dogs to health or

manage for cash

Three Paths to Failure (star-question mark-dog, cash cow-dog)

Over invest in cash cows and under invest in question marks

Trade further opportunities for present cash flow

Under invest in the stars

Allow competitors to gain share in a high growth market

Over milked the cash cows



Marketing Management - MB0030strategy - portfolio analysis - ge matrix

The business portfolio is the collection of businesses and products that make up the company. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities.

The company must:

(1) Analyse its current business portfolio and decide which businesses should receive more or less investment, and

(2) Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained.

The two best-known portfolio planning methods are the Boston Consulting Group Portfolio Matrix and the McKinsey / General Electric Matrix (discussed in this revision note). In both methods, the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organised.

The McKinsey / General Electric Matrix

The McKinsey/GE Matrix overcomes a number of the disadvantages of the BCG Box. Firstly, market attractiveness replaces market growth as the dimension of industry attractiveness, and includes a broader range of factors other than just the market growth rate. Secondly, competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed.

The diagram below illustrates some of the possible elements that determine market attractiveness and competitive strength by applying the McKinsey/GE Matrix to the UK retailing market:


http://tutor2u.net/business/strategy/bcg_box.htm

http://tutor2u.net/business/strategy/bcg_box.htm



Factors that Affect Market Attractiveness

Whilst any assessment of market attractiveness is necessarily subjective, there

are several factors which can help determine attractiveness. These are listed

below:

- Market size

- Market growth

- Market profitability

- Pricing trends

- Competitive intensity / rivalry

- Overall risk of returns in the industry

- Opportunity to differentiate products and services

- Segmentation

- Distribution structure (e.g. retail , direct, wholesale)

Factors that Affect Competitive Strength

Factors to consider include:



Marketing Management - MB0030-Strength of assets and competencies- Relative brand strength- Market share- Customer loyalty- Relative cost position (cost structure compared with competitors)- Distribution strength- Record of technological or other innovation- Access to financial and other investment resources

Ansoff's product / market matrixIntroduction

The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.

Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.




The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below:

Market penetration

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.

Market penetration seeks to achieve four main objectives:

• Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling

• Secure dominance of growth markets

• Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors



Marketing Management - MB0030• Increase usage by existing customers – for example by introducing loyalty schemesA market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.

Market development

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.

There are many possible ways of approaching this strategy, including:

• New geographical markets; for example exporting the product to a new country

• New product dimensions or packaging: for example

• New distribution channels

• Different pricing policies to attract different customers or create new market segments

Product development

Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.

Diversification

Diversification is the name given to the growth strategy where a business markets new products in new markets.

This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.



Marketing Management - MB0030For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks

2. 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 accession

2 low labor costs

3 tax incentives from the Chinese government

4 R&D collaboration opportunities.

The Chinese pharmaceutical market is split almost equally between chemical and biotechnology products



Marketing Management - MB0030at 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 foreigncompanies. 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:



Marketing Management - MB0030 ● 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



Marketing Management - MB0030through 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.

3. Explain the components of Marketing information systems

ANS. Components of a marketing information system

A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes of decision making. An MIS also provides methods for interpreting the information the MIS provides. Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of information technologies:

"A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control".

Figure .1. illustrates the major components of an MIS, the environmental factors monitored by the system and the types of marketing decision which the MIS seeks to underpin.

Figure .1. The marketing information systems and its subsystems



Marketing Management - MB0030The explanation of this model of an MIS begins with a description of each of its four main constituent parts: the internal reporting systems, marketing research system, marketing intelligence system and marketing models. It is suggested that whilst the MIS varies in its degree of sophistication - with many in the industrialised countries being computerised and few in the developing countries being so - a fully fledged MIS should have these components, the methods (and technologies) of collection, storing, retrieving and processing data notwithstanding.

Internal reporting systems: All enterprises which have been in operation for any period of time nave a wealth of information. However, this information often remains under-utilised because it is compartmentalised, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorised according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, do not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it. The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and sales invoices. These are but a few of the internal records that can be used by marketing managers, but even this small set of records is capable of generating a great deal of information. Below, is a list of some of the information that can be derived from sales invoices.

· Product type, size and pack type by territory· Product type, size and pack type by type of account· Product type, size and pack type by industry· Product type, size and pack type by customer· Average value and/or volume of sale by territory· Average value and/or volume of sale by type of account· Average value and/or volume of sale by industry· Average value and/or volume of sale by sales person

By comparing orders received with invoices an enterprise can establish the extent to which it is providing an acceptable level of customer service. In the same way, comparing stockholding records with orders received helps an enterprise ascertain whether its stocks are in line with current demand patterns.



Marketing Management - MB0030Marketing research systems: The general topic of marketing research has been the prime ' subject of the textbook and only a little more needs to be added here. Marketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem. In many cases, data is collected in a purposeful way to address a well-defined problem (or a problem which can be defined and solved within the course of the study). The other form of marketing research centres not around a specific marketing problem but is an attempt to continuously monitor the marketing environment. These monitoring or tracking exercises are continuous marketing research studies, often involving panels of farmers, consumers or distributors from which the same data is collected at regular intervals. Whilst the ad hoc study and continuous marketing research differs in the orientation, yet they are both proactive.

Marketing intelligence systems: Whereas marketing research is focused, market intelligence is not. A marketing intelligence system is a set of procedures and data sources used by marketing managers to sift information from the environment that they can use in their decision making. This scanning of the economic and business environment can be undertaken in a variety of ways, including2

Unfocused scanning

The manager, by virtue of what he/she reads, hears and watches exposes him/herself to information that may prove useful. Whilst the behaviour is unfocused and the manager has no specific purpose in mind, it is not unintentional

Semi-focused scanning

Again, the manager is not in search of particular pieces of information that he/she is actively searching but does narrow the range of media that is scanned. For instance, the manager may focus more on economic and business publications, broadcasts etc. and pay less attention to political, scientific or technological media.

Informal search

This describes the situation where a fairly limited and unstructured attempt is made to obtain information for a specific




purpose. For example, the marketing manager of a firm considering entering the business of importing frozen fish from a neighbouring country may make informal inquiries as to prices and demand levels of frozen and fresh fish. There would be little structure to this search with the manager making inquiries with traders he/she happens to encounter as well as with other ad hoc contacts in ministries, international aid agencies, with trade associations, importers/exporters etc.

Formal search

This is a purposeful search after information in some systematic way. The information will be required to address a specific issue. Whilst this sort of activity may seem to share the characteristics of marketing research the manager him/herself rather than a professional researcher, carry it out. Moreover, the scope of the search is likely to be narrow in scope and far less intensive than marketing research

Marketing intelligence is the province of entrepreneurs and senior managers within an agribusiness. It involves them in scanning newspaper trade magazines, business journals and reports, economic forecasts and other media. In addition it involves management in talking to producers, suppliers and customers, as well as to competitors. Nonetheless, it is a largely informal process of observing and conversing.

Some enterprises will approach marketing intelligence gathering in a more deliberate fashion and will train its sales force, after-sales personnel and district/area managers to take cognizance of competitors' actions, customer complaints and requests and distributor problems. Enterprises with vision will also encourage intermediaries, such as collectors, retailers, traders and other intermediaries to be proactive in conveying market intelligence back to them.

Marketing models: Within the MIS there has to be the means of interpreting information in order to give direction to decision. These models may be computerised or may not. Typical tools are:

· Time series sales modes· Brand switching models



Marketing Management - MB0030· Linear programming· Elasticity models (price, incomes, demand, supply, etc.)· Regression and correlation models· Analysis of Variance (ANOVA) models· Sensitivity analysis· Discounted cash flow· Spreadsheet 'what if models

These and similar mathematical, statistical, econometric and financial models are the analytical subsystem of the MIS. A relatively modest investment in a desktop computer is enough to allow an enterprise to automate the analysis of its data. Some of the models used are stochastic, i.e. those containing a probabilistic element whereas others are deterministic models where chance plays no part. Brand switching models are stochastic since these express brand choices in probabilities whereas linear programming is deterministic in that the relationships between variables are expressed in exact mathematical terms.

4. Explain the Henry assael model of buying decision behavior.

ANS.

High involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences

between brands

Dissonance reducing

buying behavior

Habitual buying

behavior.




Complex buying behavior :- customer 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.




Lg ge t – 282 gv/ge Akai d186 tt

dx

Electrolux

kelvinator 386

Defrost system

Door lock

Adjustable shelves

Moisture and

humidity control

Deodorizing ability

Water dispenser

Defrost system

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 exits. For example, customers who

want to purchase ctv will not many differences between the brands but the

price of the product and its technically 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



Marketing Management - MB0030When there are significant difference between the brands existing but

customer will not involve more while purchasing, marketer identify this

behavior of the customer for biscuits. There are many varieties of biscuits

available. One can purchased salt biscuits, cream biscuits, marie biscuits, and

milk biscuits of Britannia, parle, itc sun feast and other. 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 situation marketer should undertake following steps

The market leader should encourage customers to buy

repeatedly.

Make the product available and visible to the customer in the

shopping places.

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

brand leads to the habitual buying behavior. For example spice powder

marketed by mdh, everest or mtr have very feew differences between them

and customer do not search the information to purchase particular product.

Marketers whose customer represent this category should follow below listed

strategies

Use price and sales promotion to stimulate product trial

Use more visual aspect than the wordings in the advertisement

Television is the better media for this type of products.



Marketing Management - MB0030 Use classical conditioning theory to create advertisements.

5. Discuss the segmentation strategy of a cement company

ANS. MARKET SEGMENTATION MARKET SEGMENTATIONINTRODUCTION: -INTRODUCTION: - The market for any product is normally made up of several segments. A ‘market’ after all is the aggregate of consumers of a given product. And, consumer (the end userthe end user), who makes a market, are of varying characteristics and buying behavior. There are different factors contributing for varying mind set of consumers. It is thus natural that many differing segments occur within a market.In order to capture this heterogeneous market for any product, marketers usually divide or disintegrate the market into a number of sub-markets/segments and the process is known as market segmentationmarket segmentation.

Thus we can say that market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that difference between buyers within each segment is as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix.

The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment. Through segmentation, the marketer can look at the differences among the customer groups and decide on appropriate strategies/offers for each group. This is precisely why some marketing gurus/experts have described segmentation as a strategy of dividing the markets for conquering them.dividing the markets for conquering them.

MARKETING STRATEGY AND MARKET SEGMENTATION: -MARKETING STRATEGY AND MARKET SEGMENTATION: - When it comes to marketing strategies, most people spontaneously think about the 4P (Product,



Marketing Management - MB0030Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).

Market segmentation and the identification of target markets, however, are

an important element of each marketing strategy. They are the basis for

determining any particular marketing mix. Basic steps in marketing strategy

are as follows:-




ATTRIBUTES OF EFFECTIVE SEGMENTATIONATTRIBUTES OF EFFECTIVE SEGMENTATION




Market segmentation is resorted to for achieving certain practical purpose. For example, it has to be useful in developing and implementing effective and practical marketing programmes. For this to happen, the segments arrived at must meet certain criteria such:-

a. IdentifiableIdentifiable : : The differentiating attributes of the segments must be measurable so that they can be identified.

b. AccessibleAccessible : : The segments must be reachable through communication and distribution channels.

c. SizeableSizeable : The segments should be sufficiently large to justify the resources required to target them. A very small segment may not serve commercial exploitation.

d. ProfitableProfitable :: - There is no use in locating segments that are sizeable but not profitable.

e. Unique needsUnique needs : To justify separate offerings, the segments must respond differently to the different marketing mixes.

f. DurableDurable : The segments should be relatively stable to minimize the cost of frequent changes.

g. MeasurableMeasurable : The potential of the segments as well as the effect of a specific marketing mix on them should be measurable.

h. Compatible:Compatible: - Segments must be compatible with firm’s resources and capabilities.

REASONS FOR MARKET SEGMENTATIONREASONS FOR MARKET SEGMENTATION

Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments enables decisions about intensity of marketing activities in particular segments.

A segment-orientated marketing approach generally offers a range of advantages for both, businesses and customers.

1.1. Facilitates proper choice of target marketing:Facilitates proper choice of target marketing:-



Marketing Management - MB0030Segmentation helps the marketers to distinguish one customer group from another within a given market and thereby enables him to decide which segment should form his target market.

2.2. Higher Profits:Higher Profits: - It is often difficult to increase prices for the whole market. Nevertheless, it is possible to develop premium segments in which customers accept a higher price level. Such segments could be distinguished from the mass market by features like additional services, exclusive points of sale, product variations and the like. A typical segment-based price variation is by region. The generally higher price level in big cities is evidence for this. When differentiating prices by segments, organizations have to take care that there is no chance for cannibalization between high-priced products with high margins and budget offers in different segments. This risk is the higher, the less distinguished the segments are.

3.3. Facilitates tapping of the market, adapting the offer to the target:-Facilitates tapping of the market, adapting the offer to the target:-Segmentation also enables the marketer to crystallize the needs of target buyers. It also helps him to generate an accurate prediction of the likely responses from each segment of the target buyer. Moreover, when buyers are handled after careful segmentation, the responses for each segment will be homogeneous. This in turn, will help the marketer develop marketing offer/programmers that most suited to each groups. He can achieve specialization that is required in product, distribution, promotion and pricing for matching the particular customer group and develop offers and appeals for the segmented group.Example of Ford:Example of Ford: - Ford has gained useful insights through segmentation and adapted its offer to suit the Indian target market. For the Indian segment Ford made some changes in its cars in comparison to their European version. Modifications such as: -

a. Higher ground clearance to make the car ground clearance to make the car compatible to the rougher roadcompatible to the rougher road surface in Indiasurface in India..b. Stiffer rear springs to enable negotiating the ubiquitous potholes on Indianb. Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads.roads.c. Changes in cooling requirement, with greater airflow to the rear.c. Changes in cooling requirement, with greater airflow to the rear.d. Higher resistance to dust.d. Higher resistance to dust.e. Compatibility of engine with the quality of fuel available in India.e. Compatibility of engine with the quality of fuel available in India.



Marketing Management - MB0030f. Location of horn buttons on the steering wheel. As Indian motorists use hornf. Location of horn buttons on the steering wheel. As Indian motorists use horn far more frequently than the European where the horns are located on thefar more frequently than the European where the horns are located on the lever. lever.

4.4. Stimulating Innovation: -Stimulating Innovation: -An undifferentiated marketing strategy that targets at all customers in the total market necessarily reduces customers’ preferences to the smallest common basis. Segmentations provide information about smaller units in the total market that share particular needs. Only the identification of these needs enables a planned development of new or improved products that better meet the wishes of these customer groups. If a product meets and exceeds a customer’s expectations by adding superior value, the customers normally is willing to pay a higher price for that product. Thus, profit margins and profitability of the innovating organizations increase.

5.5. Makes the marketing effort more efficient and economic: -Makes the marketing effort more efficient and economic: - Segmentation ensures that the marketing effort is concentrated on well defined and carefully chosen segments. After all, the resources of any firm are limited and no firm can normally afford to attack and tap the entire market without any delimitation whatsoever. It would benefit the firm if the efforts were concentrated on segments that are more profitable and productive ones.

Segmentation also helps the marketer assess as to what extend existing offer from competitors match the needs of different customer segments. The marketer can thus identify the relatively less satisfied segments and succeed by concentrating on them and satisfying their needs.

6.6. Benefits the customer as well:Benefits the customer as well: - Segmentation brings benefits not only to the marketer, but to the customer as well. When segmentation attains higher levels of sophistication and perfection, customers and companies can conveniently settle down with each other, as at such a stage, they can safely rely on each other’s discrimination. The firm can anticipate the wants of the customers and the customers can anticipate the capabilities of the firm.

7.7. Sustainable customer relationships in all phases of customer lifeSustainable customer relationships in all phases of customer life cycle: -cycle: - Customers change their preferences and patterns of behavior over time.



Marketing Management - MB0030Organizations that serve different segments along a customer’s life cycle can guide their customers from stage to stage by always offering them a special solution for their particular needs. For example, many car manufacturers offer a product range that caters for the needs of all phases of a customer life cycle: first car for early teens, fun-car for young professionals, family car for young families, etc. Skin care cosmetics brands often offer special series for babies, teens, normal skin, and elder skin.

8.8. Targeted communication: -Targeted communication: -

It is necessary to communicate in a segment-specific way even if product features and brand identity are identical in all market segments. Such a targeted communications allows to stress those criteria that are most relevant for each particular segment (e.g. price vs. reliability vs. prestige).

9.9. Higher market Shares:Higher market Shares: - - In contrast to an undifferentiated marketing strategy, segmentation supports the development of niche strategies. Thus marketing activities can be targeted at highly attractive market segments in the beginning. Market leadership in selected segments improves the competitive position of the whole organization in its relationship with suppliers, channel partners and customers. It strengthens the brand and ensures profitability. On that basis, organizations have better chances to increase their market shares in the overall market.

BASES FOR SEGMENTATIONBASES FOR SEGMENTATION

Markets can be segmented using several relevant bases. There are huge number of variables which leads to market segmentation. They comprise easy to determine demographic factors as well as variables on user behavior or customer preferences. Segmentation is done for consumerconsumer marketmarket and industrial market. industrial market.

6. Case study

Software pricing: issues of client billing



Marketing Management - MB0030Infosys, 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



Marketing Management - MB0030b. Compare three pricing strategies discussed here and choose any

one as your choice

ANS:- A. yes, it should be provide continues revenues to infosys in the long

termB. Pricing strategies:-

1. Competition-based pricingSetting the price based upon prices of the similar competitor products.Competitive pricing is based on three types of competitive product:

Products have lasting distinctiveness from competitor's product. Here we can assume

o The product has low price elasticity. o The product has low cross elasticity. o The demand of the product will rise.

Products have perishable distinctiveness from competitor's product, assuming the product features are medium distinctiveness.

Products have little distinctiveness from competitor's product. assuming that:

o The product has high price elasticity. o The product has some cross elasticity. o No expectation that demand of the product will rise.

The pricing is done based on these three factors.

2. Cost-plus pricing

Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price.

Price = Cost of Production + Margin of Profit

3. Limit pricing


http://en.wikipedia.org/wiki/Competitor



A limit price is the price set by a monopolist to discourage economic entry into a market, and is illegal in many countries. The limit price is the price that the entrant would face upon entering as long as the incumbent firm did not decrease output. The limit price is often lower than the average cost of production or just low enough to make entering not profitable. The quantity produced by the incumbent firm to act as a deterrent to entry is usually larger than would be optimal for a monopolist, but might still produce higher economic profits than would be earned under perfect competition. The problem with limit pricing as strategic behavior is that once the entrant has entered the market, the quantity used as a threat to deter entry is no longer the incumbent firm's best response. This means that for limit pricing to be an effective deterrent to entry, the threat must in some way be made credible. A way to achieve this is for the incumbent firm to constrain itself to produce a certain quantity whether entry occurs or not. An example of this would be if the firm signed a union contract to employ a certain (high) level of labor for a long period of time.



Marketing Management - MB0030Set – 2

1. Explain the relevance of VALS to MarketingANS. About VALS™

VALS reflects a real-world pattern that explains the relationship between personality traits and consumer behavior. VALS uses psychology to analyze the dynamics underlying consumer preferences and choices. VALS not only distinguishes differences in motivation, it also captures the psychological and material constraints on consumer behavior. VALS is based on current personality research into specific components of social behavior. VALS asserts that people express their personalities through their behaviors. People with different personalities engage in different behaviors or exhibit similar behaviors for different reasons.VALS™ is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising. The basic tenet of VALS is that people express their personalities through their behaviors. VALS specifically defines consumer segments on the basis of those personality traits that affect behavior in the marketplace. Rather than looking at what people do and segregating people with like activities, VALS uses psychology to segment people according to their distinct personality traits. The personality traits are the motivation—the cause. Buying behavior becomes the effect—the observable, external behavior prompted by an internal driver.




VALS™ places U.S. adult consumers into one of eight segments based on their responses to the VALS questionnaire. The main dimensions of the segmentation framework are primary motivation (the horizontal dimension) and resources (the vertical dimension).

InnovatorsInnovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the


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Marketing Management - MB0030most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services.Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.ThinkersThinkers are motivated by ideals. They are mature, satisfied, comfortable , and reflective people who value order, knowledge, and responsibility. They tend to be well educated and actively seek out information in the decision-making process. They are well-informed about world and national events and are alert to opportunities to broaden their knowledge. Thinkers have a moderate respect for the status quo institutions of authority and social decorum, but are open to consider new ideas. Although their incomes allow them many choices, Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products they buy.AchieversMotivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery.With many wants and needs, Achievers are active in the consumer marketplace. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices.ExperiencersExperiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and



Marketing Management - MB0030socializing. Their purchases reflect the emphasis they place on looking good and having "cool" stuff.BelieversLike Thinkers, Believers are motivated by ideals. They are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation. Many Believers express moral codes that are deeply rooted and literally interpreted. They follow established routines, organized in large part around home, family, community, and social or religious organizations to which they belong.As consumers, Believers are predictable; they choose familiar products and established brands. They favor American products and are generally loyal customers.StriversStrivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead.Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.

MakersLike Experiencers, Makers are motivated by self-expression. They express themselves and experience the world by working on it-building a house, raising children, fixing a car, or canning vegetables-and have enough skill and energy to carry out their projects successfully. 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 are suspicious of new ideas and large institutions such as big business. They are 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



Marketing Management - MB0030practical or functional purpose. Because they prefer value to luxury, they buy basic products.SurvivorsSurvivors live narrowly focused lives. With few resources with which to cope, they often believe that the world is changing too quickly. They are comfortable with the familiar and are primarily concerned with safety and security. Because they must focus on meeting needs rather than fulfilling desires, Survivors do not show a strong primary motivation.Survivors are cautious consumers. They represent a very modest market for most products and services. They are loyal to favorite brands, especially if they can purchase them at a discount.

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

ANS. PRODUCT MIX :- the number of product line and items offered by marketing to consumerA company’s product mix has four different dimensions. They are product mix width, product mix length, and product mix depth and product mix consistency.

At Blue Ridge Beverage, Inc., we pride ourselves on offering great beverage products and the very best in customer service, support and educational training. We hope you will spend a few moments learning about how we can help enhance your business.




A private company based in Salem, Virginia, Blue Ridge Beverage Company Inc. is one of the largest wholesale beverage distributors in the state of Virginia, selling a wide variety of beers, wine, soft drinks, and bottled water to more than 3,500 customers in 36 counties in southwestern, central, and southern Virginia. The company's four warehouses are located in Salem, Waynesboro, Lynchburg, and South Boston, Virginia. Blue Ridge is an authorized distributor of the Miller Brewing Company, a relationship that has been in place since the early 1950s, and one that has been the lifeblood of the company. In addition, Blue Ridge offers a wide range of imported beer brands, including Becks, Corona, Fosters, Grolsch, Molson, and Sapporo. Blue Ridge also always carries the products of Miller's Plank Road Brewery; micro craft brews from the likes of Samuel Adams, Rolling Rock, and Sierra Nevada; and malt alternatives such as Twisted Tea, Mikes Hard Lemonade, and the Hoopers Hooch products. Blue Ridge prides itself on an extensive portfolio of wines, which includes fine wines from around the world and California, as well as wines from Virginia and North Carolina. Blue Ridge also sells sparkling wine and champagne, fortified and dessert wines, table wines, kosher wines, non-alcoholic wines, coolers, and hard ciders. The company distributes bottled water, primarily Evian and Perrier, soft drinks such as RC Cola, Diet-Rite, 7-Up, Canada Dry, Hires, and Nehi; and the Arizona and Mistic brands of ready-to-drink tea products. Blue Ridge also sells new age beverages as well as miscellaneous beverages like Orangina, Stewart's specialty sodas, and Yoo Hoo chocolate drink. Furthermore, Blue Ridge offers a variety of services to its customers, including customized wait staff training, wine list consulting, and party planning assistance. Blue Ridge is owned and operated by the Archer family.


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Post-Prohibition RootsWhile the United States outlawed the consumption of alcoholic beverages in 1919, Virginia imposed its own Prohibition three years earlier, and in Salem, Virginia, alcohol had been outlawed since 1893. Virginia's prohibition was far from a successful effort, however, due to neighboring "wet" states, and it proved even more problematic because of Virginia's long coastline that made



Marketing Management - MB0030smuggling easy. Moreover, in the mountainous region of Southwest Virginia, especially in Franklin, County, adjacent to Salem, there was a tradition of "moon shining," the illegal distillation of alcohol in hidden makeshift stills. Even when Prohibition went into effect around the country, Virginia had to contend with neighboring Maryland, which was notorious for not enforcing Prohibition, reasoning that enforcement of a Federal law was the Federal government's responsibility. It was not surprising that by 1933 Virginia, like the rest of the country, was eager to repeal Prohibition. In 1934 Virginia established the Department of Alcoholic Beverage Control and many of the state's breweries that had been forced to close in the 1910s were reopened and began to produce beer once again, albeit with a lower alcohol content of 3.2 percent. Demand for legalized beer and spirits led to the creation of distributorships and wholesale operations across the country. It was no different in the Roanoke area, which included Salem, even though Franklin County moonshiners continued to ply their trade. The Blue Ridge Beverage Company was founded in 1938 as a small wholesaler of beer and soft drinks to the Roanoke valley. Fifteen years later, in 1953, the company took a major step forward when it became a Miller Brewing Company distributor. In business in Wisconsin since 1855 when a German immigrant bought the Plank Road Brewery (now the name of the company's craft beers), Miller did not expand beyond its regional status until the years following World War II, when the founder's grandson took the helm. By 1952 Miller products became available in all 48 states as well as Hawaii. In many ways, Blue Ridge Beverage would hitch its wagon to Miller's rising star. The Archer's family involvement with Blue Ridge dated to 1958 when James M. Archer, Jr., moved to Salem with his wife Regime. He came from the Virginia town of Saltville, which, not surprisingly, was a major salt producer. It had served as the main supplier to the South in the Civil War. His wife, on the other hand, had been born in Belgium and because of their Jewish heritage she and her family was forced to live under assumed names during the occupation of Belgium by Nazi Germany. The war also brought her into contact with James Archer, who was serving in the United States military. The two were wed in 1945, she came to the United States with him, and together they ran Blue Ridge Beverage, buying into the business in 1958 and becoming full owners in 1960. Under the management of the Archers, Blue Ridge enjoyed steady expansion, both in terms of markets and product offerings. The company began selling wine in 1961 when it was able to pick up the franchised rights of a distributor from Alexandria, Virginia, that was abandoning the Roanoke market. Beer remained the backbone of Blue Ridge's business, however, and the company


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Marketing Management - MB0030continued to benefit from the growth of Miller, which by 1968 had become the eighth largest brewer in the United States. When it was acquired by the Phillip Morris Corporation a year later, Miller took advantage of the deep pockets of its new corporate parent to launch highly successful national marketing campaigns to build awareness of the Miller brand and support the launch of new products, such as the popular seven-ounce "pony bottle." There was also the highly successful Miller Light launch, supported by countless commercials anchored by former athletes taking sides over the seemingly unsolvable question: was Miller Lite good because it was less filling or because it just tasted great? While the answer was hashed out in a myriad of permutations, Miller Brewing rose to become America's second largest brewer, trailing only Anheuser-Busch. As the distributor of Miller products in the Roanoke Valley, Blue Ridge shared in the success of the brewer. James Archer Dies Suddenly: 1972In 1972 James Archer died suddenly at the age of 51, the result of a heart attack. His wife assumed the presidency of Blue Ridge, assisted by their son, Robert A. Archer. Born in 1947 in Saltville like his father, the younger Archer also served in the military. After graduating from Virginia Tech with a degree in marketing in 1969 he served in Vietnam with the 82nd Airborne until early 1972 and remained in the U.S. Army Reserves until eventually retiring as a colonel in 1999. When he came back from the war to help his mother, Blue Ridge Beverage was still a small business, employing just ten people. This situation would soon change, however, as the family business--which was becoming one of the leading distributors for Miller Brewing--enjoyed strong growth, thanks to its top supplier. In addition, more members of the Archer family became involved, until four of the children of James and Regime Archer held top positions at Blue Ridge. In a matter of five years, employment increased to more than 30, and included the youngest of the Archer children, Paul, who took over as operations manager in 1975. Having outgrown its warehouse space, Blue Ridge also opened a new facility just outside of Salem. It, too, was soon overwhelmed by a surge in business, and just two years later the company expanded its new facilities. Blue Ridge also began investing in technology, introducing computers to handle accounting and inventory chores and becoming the first area distributor to take orders with new hand-held computers. Blue Ridge expanded on a number of fronts in the 1980s. To keep pace the business opened a new warehouse in 1985, a 78,000-square-foot structure that would become home to the company's present-day headquarters. Another Archer sibling, James E. Archer, joined the family business in 1983. He also graduated from Virginia Tech, earning a degree in industrial engineering, and then joined the Army. While on an Army fellowship he earned a master's


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Marketing Management - MB0030degree in business administration at Emory University and then went on to serve in Germany. When he came home, Blue Ridge was too small to employ another family member, and so he went to work for Corning Glass in Pennsylvania. In the early 1980s he decided to return home to Salem and thought about starting his own engineering consulting firm, but because of the strong growth at Blue Ridge, joining the family business was a viable option. He took over as marketing manager and spearheaded the effort to broaden the distributor's product lines. He oversaw the addition of imported beers and a broader slate of wines. The wine business was greatly enhanced in 1987 with the acquisition of a Roanoke Valley rival, picking up its portfolio of brands to effectively double Blue Ridge's wine business. Blue Ridge also grew its soft drink offerings, adding bottled water like Evian and Perrier, and new age beverages from Snapple, Arizona, and Mistic that were becoming popular with consumers. Miller products continued to be the heart of Blue Ridge's business, however, and the Archer family built upon this foundation in the 1980s through acquisitions. In 1984 the Archers bought Charlottesville, Virginia-based Cavalier Beverage Company, to add a second Miller distributorship, and dispatched Paul Archer to run the new business as general manager. Four years later, Cavalier made an acquisition of its own, adding a Miller distributor located in Harrisonburg, Virginia. Sister Companies Merge: 1997Both Blue Ridge and Cavalier continued to expand their territories and broaden their product mix in the 1990s. In 1996, Cavalier acquired the RC Cola franchise and began distributing Canada Dry products, Hawaiian Punch drinks, and Snapple ice tea products. In that same year, Blue Ridge also gained a local 7-Up franchise. Several months later, in June 1997, sister company Cavalier was merged into Blue Ridge to create a larger, leaner operation. It would then add to its core Miller Brewing business by acquiring distributorships in Danville and Keysville, Virginia. Then, in February 1998, Blue Ridge added Lynchburg, Virginia, to the markets for which it held the rights to distribute Miller products. Blue Ridge was a much larger operation now, employing more than 250, a far cry from the ten-person business it was when James Archer passed away. It required an experienced person to serve as the chief financial officer, and the family was fortunate to have such a person in the family, the youngest daughter, Jackie, who had spent the previous 11 years working in the banking industry in Chicago. In 2002 Regine Archer, approaching 80 years of age, stepped down as president of Blue Ridge and turned over the post to her son Robert. Nevertheless, she stayed on as chairwoman of the company. In 2005 her efforts in growing the


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Marketing Management - MB0030business after losing her husband were recognized when she was inducted into the Junior Achievement of Southwest Virginia's hall of fame, becoming only the second woman to receive the honor. Even as she was stepping back her involvement with the family business, Blue Ridge was continuing to grow. The company was especially active in supporting new Virginia wineries, representing ten of them. It was also looking to add other new products, such as Hooper's Hooch and its popular alcoholic lemon brew, and over beverages. Nevertheless, it was the distribution of Miller Brewing products that remained the foundation of the business and key to its ongoing growth. Principal CompetitorsPA Short Distributing; Valley Distributing Corporation. Further ReadingAdams, Duncan, "Archer Heads Va. Chamber of Commerce," Roanoke Times, February 5, 2004, p. C8.------, "Survivor of Nazi Germany Honored," Roanoke Times, January 21, 2005, p. C8.Carter, Emily Paine, "Tech Grad Becomes Major General," Roanoke Times, March 3, 2005, p. 2.— Ed Dinger SOURCE: www.blueridgebeverage.com

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

ANS. Private branding is when a large distribution channel member (usually a retailer), buys from a manufacturer in bulk and puts its own name on the product. This strategy is only practical when the retailer does very high levels of volume. The advantages to the retailer are:

more freedom and flexibility in pricing

more control over product attributes and quality

higher margins (or lower selling price)


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Marketing Management - MB0030 eliminates much of the manufacturer's promotional costs

The advantages to the manufacturer are: reduced promotional costs

stability of sales volume (at least while the contract is operative)

Private labelPrivate label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting. They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.Types of private labels

Store brands - The retailer's name is very evident on the packaging.

Store sub-brands - Products where the retailer's name is low-key on the packaging.

Umbrella branding - A generic brand, independent from the name of the retailer.


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Marketing Management - MB0030 Individual brands - A name used in one category, this is only used to

promote a "real" discount product line.

Exclusive brands - Again a name used in one category, but to promote "added value" products within the category

Distributor brands - Large wholesale grocers and foodservice purveyors often have private labels, for example the Parade brand of Federated Foodservice and the wide array of private brands of the large food service supplier Sysco. These brands are typically seen in non-chain independent restaurants and stores that cannot afford their own private labeling.

Copycat private labels - brands owned by a retailer which use similar trade dress, i.e. packaging as a leading national brand.

Credit cards - The retailer's name/logo and branding makes up the 'look' of the plastic card (as opposed to it being a [MasterCard] credit card, though co-brand cards also exist). Credit service on private-label cards is often provided by a third-party issuer as retailers continue to outsource their in-house programs.

There has been a significant increase in private label brands in the recent years worldwide. In Europe, private label goods now account for about 45% of products sold in supermarkets, compared to 25% in the USA. Wal-Mart, for instance, has a 40% private label representation in their stores.[citation needed] Pacific rim countries, such as Australia, Singapore, and Japan, also have significant presence of private labels on store shelves.Historically, private labels were seen as low-priced, low-quality products. In recent years, however, companies have started using private labels to market higher quality items, and many believe high-quality private labels will increase their presence.Some grocery chains now sell primarily private label products. Examples include Trader Joe's and the European grocery chains Aldi and Leader Price.2007 Pet food recallsMain article: 2007 pet food recallsIn 2007, there was a recall in the United States of more than 60 million cans of pet food sold under more than 100 brand names made by Menu Foods. The mass recall lifted the curtain on a common practice in consumer products that competing brands are often made by the same manufacturer. However,


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Marketing Management - MB0030ingredients, designs and quality may differ substantially among the labels made under the same umbrella. [3]

[edit] Examples of private label manufacturersStore Brands: (Products distributed and sold using the store's name)

Whole Foods Market

Food Lion

Kroger - Kroger uses a three-tier store brand system:

Kroger Value: Lower tier brand; formerly known as For Maximum Value and Cost Cutters even before that. This tier is also labeled bilingually in English and Spanish.Kroger: Middle tier brandPrivate Selection: Upper-scale brand; this is targeted towards customers looking for better quality rather than lower prices.Private Label Manufacturers

Topco (Skokie, Illinois)- Brands- Food Club (moderate price), Valu Time (budget) Available in several intermediate grocery chains. Sometimes produces Store brand products as well.

FOSFA (Breclav, Czech Republic) - producent of laundry detergents and cleaners specialized in private label manufacturing.

Associated Wholesale Grocers, Inc. (Kansas City, Kansas)- Brands- Best Choice (moderate), Always Save (budget). Available at intermediate grocers as well as Kmart.

Huish Detergents, Inc. - Manufactures Store Branded laundry detergents, fabric softener, bleaches, and other household cleaners. They produce laundry detergent for Wal*Mart, Costco, Sam's Club, Sears, Walgreens, Albertsons, Lucky, H-E-B, Safeway/Von's/Pavilions, Stater Bros., and Ralph's/Kroger.

NHK Laboratories, Inc. (Santa Fe Springs, California) - Manufacturer of private label dietary supplements and pharmaceuticals.

Alimentos Kamuk, S.A. (Cartago, Costa Rica) Manufacturer / Exporter of Private Label only Hot Sauce & Related Products. Available World Wide in select supermarket chains by over 30 individual brands.


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Marketing Management - MB0030 Traverse Bay Farms, Private label manufacturer / Gourmet and Fruit

Salsas. Traverse Bay Farms gourmet and fruit salsa were voted #1 in America for 2 straight years from America's Best National Food Competition.

3 topole - Manufacturer and exporter of private label confectionery products, supplier to major grocery chains in Poland and Europe.

PBM Products - Manufacturer of store brand infant formula

4. Explain the partner relationship management at Airtel

ANS.


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Marketing Management - MB0030 Partner Relationship Management Bharti Airtel's requirements with respect to Partner Relationship Management. Bharti Airtel partner engagement strategies focus on selecting the most capable partners worldwide and continuously working with them to enhance their capabilities of providing conforming goods or services, on time. The fundamental criterion for selecting and developing a long-term relationship with our partners is Best Value. Best Value applies not only to product cost, but also to costs and risks of acquisition and materials handling. Best Value, therefore includes the partner's service level, contribution to initiatives, and conformance to quality on all the requirements outlined in this manual.Bharti Airtel's PRM Process comprises of the following steps

o Categorization

o Rewards & recognition

o Satisfaction level

o Communication

o Grievances

← Categorization

Partner categorization is done on the following parameterso Business Size

o Business Impact

o Business Model

o Type of product/item/service

o Type of Technology & Domain knowledge

o Performance status

Partner Categories areo Privileged Partners - Registered, Approved, have contracts,

currently supplying and Delight us on every aspect of business engagement.

o Preferred Partners - Registered, Approved, Have contracts, supplying with satisfactory performance



Marketing Management - MB0030o Present Partners - Registered, Approved, Have contracts and

currently supplying

o Potential Partners - Registered & Approved but no contract with them

← Partner categorization is decided by the panel of experts from costing and pricing verticalof SCM function. Based on the category type, following privileges are given to partners

Parameters Privileged Partners

Preferred Partners

Present Partners

Potential Partner

Strategic Partner

Strategic Partnership can done

--- --- ---

Airtel Facilities for

Partners

Office space,

Canteen, Parking

---

--- ---

Risk Risk

Sharing ---

--- ---

Advances Max. 5% of the buying within a

fiscal and recovery in

12 equal installments

requirement justification

--- ---




Engagement

Meetings High Medium

Need Based

---

New Business opportunities Preferred

Preferred Considered over

potential

Considered over non registered

←

←

←

← Rewards and Recognition

Consistent performance is the basis for rewarding and recognising Partners. The reward and recognition criteraia is partner performance score card. The performance is analysed for different partner categories.

←

←

← Paramters

The list of paramters and their weightages are

SN Ranking Parameters Weightages

1 Cost 25

2 Quality 15

3 Delivery 15

4Development / Innovation / New Technology

10

5 After Sales service / SLA 15

6 Responsiveness / Flexibility 10




7BACKWARD Compatibility / Scalability

5

8 Systems and Processes 5

←

← Differentiators

Key differentiators for the parameters are

SN Parameter Key Differentiators

1 Cost

Beating Inflation

Alternate Sourcing Value Engineering Continuous Cost Reduction Y-on-Y

2 Quality

Minimum Failure on Receipt

No infant Failure First time Acceptance Quality Certification Consistent Quality in long run Quality Culture initiatives Minimum Outage Eco Friendliness

3 Delivery

On Time, as required

Consistency Handling Challenges Delivery in Exigency




4Development / Innovation / New Technology

Value Engineering

Time to Market Competitive advantage Value for Money / Value Added Focus on R & D Additional Revenue Stream Go to Market

5After Sales service / SLA

No Outage

Spares Availability Meeting TAT Preventive MaintenanceResponse TimeResolution within SLA Detect-ability of the defects - online monitoring24 X 7 Support

6Responsiveness / Flexibility

Meeting Challenges

Speed of ResponseWillingness to raise the barUnderstanding Customer needs

7BACKWARD Compatibility / Scalability

Product Life Cycle - integration with Technology

Timely InvestmentsBreadth & DepthAlignment with Airtel 's Strategy

8 Systems and Processes

Proactive Regulatory Compliance

Innovative Business Models implementationImprovement Focus




Partners are selected based on the following criterias

o Covers all major categories

o Major share of business in the category

The scoring of each partner is carried by a evaluation team consisting of key users. Scores are compiled and ranking is carried out.

← Award Categories

The award categories are dynamic and primarily depend on Airtel's Key thrust areas for the fiscal.

o Product

o Services

o Special

← Award Announcement

Awards are announced and presented during the annual partnership meets. Consistent & good performers are recognized whereas bad performances are warned and punitive actions taken, as required, from time to time.

← Partner Satisfaction

Partner Satisfaction is considered as important tool by Bharti Airtel to improve and further develop its internal processes and external processes with partners in the supply chain network. Partner Satisfaction is considered

o As an element of supply chain management including partnership, supply management and collaboration, quality management and reverse marketing

o As an analogical element with customer satisfaction including marketing research

o As analogical approach with 360° methodology .

In order to obtain an unbiased feedback, the surveys is conducted by an independent external agency. Survey parameters are jointly decided by partner approval team and the agency. These surveys are conducted once a year for selected Partners. The confidentiality of the survey data is maintained by the agency and is not disclosed to Bharti Airtel.




The outcome of the survey would include

o Area of improvements

o Internal Benchmarks

o Competition Benchmarking

o Best Practices

The results and feedback received from the partner satisfaction survey would be used to improve partner engagement processes at all levels of the organization. Partner touch-points would also be given feedbacks on their interaction & support effectiveness.

← Partner Grievances

Bharti Airtel recognizes Partners as one of the key stakeholders of its business and hence it is important to address their grievances in transparent and structured manner. Issues related to ethics and integrity are handled by Ombudsman Process as per the Bharti Airtel Code of Conduct policy.

All other grievances are monitored, reviewed and resolved by Supply Chain Council. This council comprises of senior members of the supply chain function. Partner identity is kept confidential in case of sensitive grievances like integrity issues.

← Types of grievances

Grievences are broadly classified in the following catagories

o Payments

o Dispute/Disagreement in bussiness

o Unethical/Integrity/Code of Conduct violations

There are different channels through which Partners can register their grievances

o Partner Portal (to be activated soon)

o E-mails to helpdesk




Overview of Partner grievances handling process is given below

Parner Grievance Handling Stages

Partner registers grievance through available channels

Receive the grievance and forward to respective teams.

Analysis on the grievance and come out with action plan. Implementation of the action plan.

Partners are communicated with action taken

← Partner Communication

This section outlines Bharti Airtel requirements with respect to Partner Communication. Bharti Airtel believes that Communiaction is the nerve line for any partnership and focuses on establishing a transparent, two-way and trusting relationship with all partners.

Communication with partners is done at different levels

o Functional Directors - Conceptualization of requirement, delivery timing and KPI's

o User Owner - Delivery as per specification, timeline and usage requirement

o Supply Chain Team - Commercial and Contractual Agreements

o Governance Team - Code of Conduct, Contractal Obligations and Ethical Issues

Three types of communications are considered

o Strategic

o Operational

o Need Based

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

ANS.




“Analysis of 6 TV Advertisements” Table of Contents

Sl. No.

Topic

I Introduction

II Advertisement 1 – Mountain Dew’s “Bad Cheetah” Ad

III Advertisement 2 – Kinetic Blaze Introductory Ad

IV Advertisement 3 – Gillette’s “Champions” Ad

V Advertisement 4 – Orbit White Chewing Gum “Cow” Ad

VI Advertisement 5 – VISA’s Pierce Brosnan Ad

VII Advertisement 6 – Surf Excel’s Ad (Brother & Sister Duo)

VIII TV Advertising

IX Advertising Success

X Conclusion

Introduction

A television advertisement or television commercial is a span of television programming produced and paid for by an organisation that conveys a message. Advertisement revenue provides a significant portion of the funding for most privately owned television networks. The vast majority of television advertisements today consist of brief advertising spots, ranging in length from a few seconds to several minutes (as well as program-length infomercials). Advertisements of this sort have been used to sell every product imaginable over the years, from household products to goods and services, to political campaigns. Many television advertisements feature catchy jingles (songs or melodies) or catch-phrases that generate sustained appeal, which may remain in the minds of television viewers long after the span of the advertising campaign.



Marketing Management - MB0030Some of these ad jingles or catch-phrases may take on lives of their own, spawning gags or “riffs” that may appear in other forms of media, such as comedy movies or television variety shows, or in written media, such as magazine comics or literature. These long-lasting advertising elements may therefore be said to have taken a place in the pop culture history of the demographic to which they have appeared. Advertising agencies often use humour as a tool in their creative marketing campaigns. In fact, many psychological studies tried to demonstrate the effect of humour and indicate the way to empower advertising persuasion. Advertising agencies often use humour as a tool in their creative marketing campaigns. In fact, many psychological studies tried to demonstrate the effect of humour and indicate the way to empower advertising persuasion. Despite the popularity of some advertisements, many consider them to be an annoyance for a number of reasons. The main reason may be that the sound volume of advertisements tends to be higher (and in some cases much higher) than that of regular programming. The increasing number of advertisements, as well as overplaying of the same advertisement are secondary annoyance factors. A third might be the increasing ability to advertise on television, prompting ad campaigns by everyone from cell-phone companies and fast food restaurants to local businesses and small businesses. From a cognitive standpoint, the core reason people find advertisements annoying is that the advertisement’s offer is not of interest at that moment, or the presentation is unclear. A typical viewer has seen enough advertisements to anticipate that most advertisements will be bothersome, prompting the viewer to be mercilessly selective in their viewing. Conversely, if an advertisement strikes a chord with the viewer (such as an ad for debt relief shown to a viewer who has received a late notice in the mail), or has entertainment value beyond the basic message, then viewers tend to stay with the advertisement, perhaps even looking forward to viewing it again.Facts and Figures of Television Advertising 2004-2008Count of Advertisers and Brands.




The number of advertisers needed to promote the brands has steadily grown at a higher percentage than the number of brands, themselves. In the period spanning 2004 to 2007, the advertisers outnumbered the companies. This gave the companies a choice of advertisers so as to get the best deal and the best advertising strategy. However, in the last year, the number of brands fell. This is due to many reasons including recession, inflation and vigorous competition. As the number of companies in the market started to fall, so did the number of advertisers. The advertisers are highly dependent on the companies to generate contracts and hence, revenue. In most companies, although they have a separate advertising department, they generally outsource the creative work to advertising agencies. Therefore, when the companies face a tight financial situation, they generally cut back on their advertising expenditure. This directly impacts the advertisers, whose sole occupation is the provision of advertisements. Thus, we can see a steeper fall in the number of advertisers to a gentler fall in the number of brands.

Average ads/day on a channel.




The medium of TV advertising has seen rapid growth in the pas couple of years. TV shows have started to invite more advertisements than before. While there were only 197 advertisements in 2004 that served as “fillers” during commercial breaks, as of 2007, that number rose by almost 45%. Today, advertisements are not considered separate from the show timings, but are clubbed with the shows and are taken for granted. What can also be seen by the graph is, with a decrease in the number of brands and the corresponding fall in the number of advertisers, the number of break-time fillers has also come down in the last year. With fewer brands and even fewer advertisers, the number of advertisements that feature in commercial breaks has also been impacted.

Advertisement 1Mountain Dew’s “Bad Cheetah” Advertisement



Marketing Management - MB0030This is a campaign that has confined itself to barely three commercials. The common thing in all these commercials is the group of boys out on a safari. They are generally roaming about shouting - Do the Dew!Let us analyze one of the advertisements.The commercial shows a cheetah running in all its gusto, and one of our models following it on a bicycle. Finally, the lad jumps on the cheetah and traps him. Then he puts his hand inside the cheetah’s mouth...straight down to his stomach, and pulls out a can of Mountain Dew. “Bad Cheetah” - he says. The other guys watching him say to each other - “Cheetah bhi peeta hain!” Then they show the cheetah with all the spots gone except for a few spots which spell out - Do the Dew.The commercial fails to follow some vital rules of advertising. There is absolutely no brand positioning. Which bracket of people is it targeting? What benefit is it giving you? Secondly, their models seem possessed, running around jungles with colourful clothes, jumping on cheetahs and shouting at the top of their voices. The viewers have no point of reference to identify themselves with either the product or the advertising tone.Thirdly, there is no advertising message – at least nothing that makes any sense. Why would anyone want to drink something that a Cheetah allegedly drinks? How did the Cheetah get hold of the can of Mountain Dew in the first place? In fact, this advertisement has more environmental and wildlife ramifications than any connection with the product.Fourthly, it is a very paltry hand at humour. If the intention of the advertisers was to excite the audience and make them laugh, they have failed miserably. This advertisement has induced to people only to switch channels because of its senseless advertising message, theme and conception.Fifthly and most importantly, the advertisement says nothing at all about the drink, except, of course, to extol its endearing quality it to Cheetahs. What is the taste? Does it quench your thirst? Does it make you feel cool? Is it refreshing?If this advertisement is remembered at all, it is remembered for all the wrong reasons. From the very beginning of the Mountain Dew’s ad campaign, it has come under some very serious firing. When they launched their first ad featuring the infamous slogan – “Do the Dew”, other aerated drink manufacturers immediately saw its potential by piggybacking on the fame and releasing a parody. The parody achieved what the original never did. Today, viewers instantly relate this slogan to “No do here, go do jhaadi ke peeche.”The Mountain Dew advertisement failed at the ad mantra – AIDA. Although it did catch the attention of the viewer the first time it was aired. It did not generate any interest or desire. It crashed so bad that not only was the ad



Marketing Management - MB0030campaign scrapped, so was the product. Even if bottles of Mountain Dew line the shelves of stores today, its sales barely make a dent in the profits of the company.

Advertisement 2Kinetic Blaze Introductory Advertisement

The Blaze is part of Kinetic's Italiano series of scooters, comprises seven bestselling true-blue European scooter designs that Kinetic bought from Italian manufacturer Italjet. With its aggressive and glamorous Italian design, generous proportions and majestic presence, the very special Blaze makes an instant celebrity of its rider. The high-spec Blaze also has ample go to match the show – with a powerful 165cc, 4 valve engine that pumps out 11.6 bhp, coupled with automatic transmission.Kinetic Blaze was launched in 2006. The following is an analysis of the introductory advertisement.In this advertisement, a group of girls are seen going crazy in front of a house. A guy seeing the crowd of girls asks a nearby shopkeeper if Abhishek or John were around. The shopkeeper says it is Rohit Verma. He has Kinetic’s latest scooter and this is the source of all the commotion. This advertisement is clearly targeted towards the youth. Not only are the models used in the age group of 20-30, the entire look and feel of the advertisement is young and “hep”. This commercial scores on some points while it fails at others.First of all, the advertisement develops attention and generates interest. Viewers are kept in the dark as to the source of the commotion. Interest is heightened when the shopkeeper answers in the negative to the names of celebrities. When the name “Rohit Verma” is mentioned, viewers are all ears (and eyes) to find out more about him.The presentation of the product, in this case the scooter, is also well done. It looks glamorous, and the difference in size and shape are also highlighted without words, heightening the impact. The product and the brand are not lost in the advertisement, and viewers not only



Marketing Management - MB0030identify the product, but also remember it. Its market targeting and brand positioning are clearly defined. The target is the middle income male youth. It is positioned as a scooter for men and the first in ushering in a new market segment for scooters with its innovative design and target market.However, the advertisement itself fails to generate a desire for more information or for purchase. This desire is evoked by the fact that the scooter is new and innovative. If the same advertisement was broadcast for a scooter that had already been launched in the market, it would not have done well. So, in a way, this advertisement works for the product since it is new, but considered solely from the advertising point of view, it does not make a big impact.The advertisement also fails to answer some of the basic questions that consumers have while watching the commercial. What sets this scooter apart from the other scooters in the market? It is obvious that the look and feel of the scooter is definitely innovative. However, all new products sport a new appearance, in fact, it is imperative that they do so. So in terms of performance, how does it differ? What is its USP? Why should the consumer choose to buy this product, when he can be sure of the performance of tried-and-tested scooters?From the advertising point of view, the commercial lacks originality and creativity. Showing a crowd of screaming girls to enhance the psychological value of a product is not new. Many advertisements for motorbikes, furniture, cars etc., showcase models to give the product an “oomph” factor and increase its appeal. Also, from a logical standpoint, why would the girls favour a guy based only on the fact that he has this scooter? How does it award him star status?The advertising message is vague and unappealing. It is understood that the product is being positioned as “your Shortcut To Fame”. But, how? Most motorbike advertisements try to project their product as one that will give the owner an edge with the ladies. The advertisement says much, but tells little.



Marketing Management - MB0030Advertisement 3

Gillette’s “Champions” Advertisement

Gillette is a brand of Procter & Gamble currently used for safety razors among other personal hygiene products. It is one of several brands originally owned by The Gillette Company, a leading global supplier of products under various brands, which was acquired by P&G in 2005.The Gillette Fusion is a five-bladed razor released in 2006. There are two different versions of the Fusion available: the Gillette Fusion, and the Gillette Fusion Power. All share the characteristic five blades on the front, and a single sixth blade on the rear that acts as a "precision trimmer". In addition, the Fusion Power is battery powered and emits "gentle micro pulses" that are claimed to increase razor glide. With the release of Gillette Fusion, P&G also launched their new advertising campaign called “Gillette Champions”. The following is an analysis of the first advertisement broadcast in this series.This advertisement features the Gillette champions -- Tiger Woods, Thierry Henry and Roger Federer. The commercial is called “Today” and all the three Champions explain how important it is in their professional and personal lives to ‘Be Your Best Today’. The advertising campaign exploits the influencing power of brand ambassadors. The Gillette ‘Champions’ are Roger Federer (No.1 Tennis Player), Thierry Henry (No.1 Football Player) and Tiger Woods (No.1 Golfer). The Indian campaign is varied to include Rahul Dravid to cater to Indian sensibilities.The advertisers try to use the concept of transference or association to enhance the image of their product and brand. The attributes of quality, performance and excellence exuded by these personalities are projected onto the product and the brand. This builds brand image and a favourable attitude towards the new product.A sense of polish and “class” underscores the entire advertisement. It plays on the viewers’ “feel-good” sensations. The advertisement comes across as smooth and urbane.However, it does feel as if the advertisers are trying to hard by roping in three (or four) brand ambassadors. Most advertisers feel that having celebrities or



Marketing Management - MB0030stars advertise their product influences the consumers more than an advertisement that does not feature them. But, there is something called too much stress on the influence of brand ambassadors.There seems to be little relevance amongst the slogan, the advertisement and the product. Gillette may be the best a man can get, but how does that help the ‘Champions’ in their respective sports? Form a logical standpoint, how does the new razor blade assist the players?The audio of the advertisement bears little or no relevance to the advertising message. The advertisement talks about focusing on the present, but says nothing about the new blade.Nevertheless, overall, the advertisement comes across as suave. The brand image of Gillette is maintained and even enhanced by this advertisement. The advertisement succeeds in generating a desire and action to purchase in spite of the drawbacks of the advertisement.




Orbit White Chewing Gum “Cow” Advertisement

Orbit is one of the world's largest selling chewing gum brand.In India, the brand shares the market leadership with Center Fresh brand.Orbit was launched in India in 2004. This was India's first Sugarfree chewing gum and together with Perfetti's Happydent, this brand has rejuvenated the chewing gum segment in India.Orbit can be termed as a functional chewing gum. The brand when launched differentiated itself from the existing chewing gums with its "sugar free" property. Globally the Orbit brand adopts the tagline "For a good clean feeling no matter what" in India, Orbit uses " for healthy teeth and prevents tooth decay " as its main message.Orbit White launched their most popular advertising campaign with the “Cow” series. The following is an analysis of the first advertisement in this series.The advertisement showcases a mad animal specialist, Dr. Bhatawdekar, who speaks in ‘Butler-English’. He expounds the special quality of Orbit White Chewing Gum that whitens the teeth of a cow that previously had yellow teeth. His conclusion is that if it works for the cow, it’ll work for you too.This commercial tries its hand at humour in drawing attention and generating interest. It succeeds to quite an extent in this intention, but also fails at few places.The caricature of the doctor succeeds exceedingly well. Viewers immediately recall the product, the brand and the entire advertisement on any reference to Dr. Bhatawdekar.The product and brand are duly highlighted. They are not lost during the telecast of the advertisement. The commercial’s message is wound around the product, making the product and brand as much a part of the advertisement as the rest of the characters and the concept.The advertisement also successfully plays to the sense of humour of the viewers. Any reference to the product results in immediate association to the doctor and his cow volunteer. This gives viewers a light-hearted view of the product.



Marketing Management - MB0030Nonetheless, there have been instances where the sentiments of viewers have been hurt. In such cases, it seems that the concept that starts out as funny, turns out to be a gross miscalculation of the sense of humour of the viewers.The characterization of the doctor and the way he speaks in English can be construed as offensive by many viewers. Since the doctor is a deliberate attempt at making fun of bad grammar, viewers who are insecure of their oral abilities may find the advertisement offensive.Overall, the advertisement has no class. Viewers can be put off by the commercial on grounds that it displays no sophistication. The attempt at humour can be seen as tending towards slapstick comedy – and a very poor attempt at that.However, the advertisement does not fail completely. The product and brand are imprinted in the minds of the consumer. Any reference to the product brings remembrance of the humorous advertisement. And consumers purchase the product, even if only out of a sense of absurdity.




VISA’s Pierce Brosnan Advertisement

Visa Inc. operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.Visa gained the attention of television viewers in 2003 with a ‘Tuk Tuk’, featuring Pierce Brosnan in Bangkok. The following is an analysis of the advertisement.A limousine drives through the streets of Bangkok, only to be thwarted by a traffic jam. Pierce Brosnan winds down his window and catches the eye of a tuk tuk driver. The driver, delighted to have James Bond in the back seat, revs the engine and pulls a wheelie, beginning a stunt-filled and effects-laden ride through the alleyways, restaurants and shops of Bangkok. The tuk tuk arrives at the hotel just as Brosnan’s dining partner pulls up in a limousine. Zhang Ziyi steps out and apologise for being late. The tuk tuk collapses, totally exhausted by the trip across town. Brosnan reaches for his jacket pocket and throws his VISA card to the driver. Later in the evening, the tuk tuk driver pulls up with a brand new tuk tuk, revving his engine and beckoning for Brosnan and Zhang Ziyi to join him. The tagline: “Visa: All it takes.”This advertisement can be considered a success. It does a lot of things right and gains not only the attention and interest of the viewers, but also builds a strong brand image and remembrance.The product is clear and highlighted. The brand, too, is not lost during the course of the advertisement. The product and brand is the core of the advertising message. Any attempt to analyze the commercial otherwise would prove fruitless.The advertisement retains a “dashing” air, quite literally. The commercial successfully draws on the sophisticated action of James Bond and highlights it exceedingly well in the tuk tuk mad-dash through the city.The advertisement stays true to the image of James Bond. The commercial maintains the charm of James Bond. It also includes a lot of stunts that can be immediately associated to James Bond. This succeeds in drawing the attention and generating interest among the viewers.



Marketing Management - MB0030The brand, VISA, is associated with sophistication and quality. With this advertisement, they reinforce this image and add to it a certain panache and “active” participation.If the advertisement comes under any criticism at all, it is from a purely logical standpoint. When Brosnan hands over his VISA card to the tuk tuk driver, the driver returns with a new and better powered tuk tuk. However, there are those who argue that anyone would have disappeared with the card and spent all the money.

Nevertheless, for those who appreciate honesty, this advertisement succeeds. The commercial generates good feelings in the minds of the viewers. The product and brand are remembered. Additionally, the brand image is improved and remembered.




Surf Excel’s Advertisement(Brother & Sister Duo)

Hindustan Unilever Limited introduced Surf in 1959, introducing the first detergent powder into the country. At the time, housewives used laundry soap bars to wash clothes. Surf offered them significantly better clean, with much less effort. The promise of ‘superlative whiteness’ – the articulation of a great clean at the time, connected with consumers and helped to establish the brand. Surf was the first national detergent brand on TV; the brand used TV to effectively educate their consumers on how to use detergent powders in a bucket for a better wash.Surf Excel made a big “splash” with their “Daag Achhe Hain” advertising campaign. The following is an analysis of the first such commercial.The advertisement features a brother and sister duo walking home from school, when the little girl falls into a puddle of mud. Crying, she looks to her brother for help. Her brother gets an idea and starts “beating up” the puddle of mud, demanding an apology. After a time and a lot of mud on his uniform, he stands up and says, “Sorry bola.” The narrator then removes all apprehensions of dirt and stains and says, “Daag Acche Hain.”This advertisement is universally well-loved. This is so because it does a lot of things right. It makes use of children’s appeal to get the advertising message across.The advertisement does what seldom others do – cater to the emotions and sentiments of the viewers – and succeeds with it. Not only do the children lower your guard to the advertisement, but the story, too, warms the heart of the viewers.The advertisement generates a sense of bonding. Viewers without siblings, too, can relate to the advertisement and the actions of the little boy. The advertisement also exudes certain warmth that reflects itself in the viewers.The advertising mantra, AIDA, is strictly adhered to. This is one of the reasons for its success. By showing a little boy and girl, the advertisement draws the attention of the viewers. When the little girl falls into the puddle and starts to cry, it creates interest in the minds of the viewers. When the tagline is spouted, it builds, in the viewers, a desire to know more. This desire often leads to action.



Marketing Management - MB0030Although there is no obvious targeting, it is done so through indirect means. Most mothers are concerned when their children come home in dirty and messy clothes. This advertisement, not only sends out the message that Surf Excel will help you was them out, but that also there is no need to fear stains.Although the advertisement does not centre on the product or brand, both are remembered. The product and brand are subtly introduced to the viewers such that it sub-consciously enters their minds without any jarring highlights on the product or brand.This advertisement also does what the majority do not. It focuses on the people rather than the product. The sentiments, actions and emotions of the people are highlighted and showcased throughout the advertisement in one form or another. The product is kept discreetly tucked away and does not overpower the commercial.Although Surf Excel is a premium brand, this advertisement caters to all the income grades and all classes of people, across age groups. The brand and product are positioned as accessible to all people, whoever and however they may be. The brand image created through this advertisement is phenomenal.The advertisement leaves people with a warm feeling. This feeling also transfers to the product and brand. Thus, this advertisement can definitely be called and advertising success.

TV Advertising

The best part of advertising on TV is that there is a market for almost any product or service; you just need to know how to reach it. Whether you are selling paint thinner, a circular saw, door stop, or block of cheese, with proper marketing it will sell. What are they keys to successful advertising? Obviously, you have to have a commercial that doesn't make your viewers want to change the channel. Also, you need to think of who your market is. For example, lets say you are selling a block of cheese. Think to yourself who is going to be interested in good cheese. What time of day? What channels? What show? Well, obviously it doesn't take an expert to figure out that a cooking or food based channel might be a good place to start. Perhaps a show that deals with low-carb food might be a more specific area to look at. Time of day, is fairly irrelevant here so any time would do. If you are selling the circular saw, try Home and Garden shows and channels or do-it-yourself shows. Most companies look at television commercials as an advertising vehicle for "the other guy." The corporate giant. The big business with lots of disposable cash. In fact, TV is a very affordable medium that can increase your company's



Marketing Management - MB0030profits greatly. Before you make an investment in television advertising, there are certain key elements you need to consider. Once you understand the process of writing, creating and producing a commercial, you're ready to hit the airwaves. Effective TV commercials merge video and audio into a powerful sales tool. But don't think one is more important than the other. Audio and video go hand-in-hand.For example, turn down the volume on any commercial. You should be able to identify the benefits of purchasing a product just from the video.The same holds true for audio. Close your eyes and listen to the announcer. If the audio doesn't explain the product in detail, then the commercial isn't effective. Potential customers should be able to hear your message even if they're not in the room to see it.

Always use a strong audio and video combination when creating your own commercial. Use your audio to explain the advantages of owning your product. You'd use words like "convenient, portable, lightweight."However, there are no words more important than your call to action. What do you want your viewer to do? Tell them to call now. Order now. Visit their local dealer. Think of television as an intimate medium. If you're advertising a restaurant, don't just use a shot of your building's exterior. Use a close-up of your food in your commercial. And show people eating your food. If you're producing a Public Service Announcement(PSA) about drunk driving, don't just use a shot of a crowd of people at a funeral. Show a tear streaming down a child's face.Combining sight and sound should spark your viewers' emotions and help them identify with your product. And if they can identify with your product, you're more likely to get the sale!

Advertising Success




Marketing and Advertising Success is like shooting a game of snooker.... No matter if you play snooker or not, this applies to everyone and their quest for marketing success. Many people are constantly searching for "the key" to success and in doing so miss out on the most important LESSON of the search.It is not about finding "the key". It is about learning. Learning and getting better through practice. Think about it. When you play a game of pool (or any game) - did you learn the game overnight? No. Did you learn the game in a week? A month? A year? If you practice every day you might get good enough to enter a few tournaments and maybe win a few here and there. Practice more and you win more.The funny thing about pool is similar it is to the search for success.You must practice to get better. It is not about reading a book on how to get better – you have to get out there and do it. There are a lot of mistakes to be made in the process to become a better snooker player. Lots of missed shots. Lots of bad shots that somehow go in. But you could never repeat the exact shot because it was a fluke. Only through repetitive practice do you get better and consistent. Then you find some areas of the game you are better at. Maybe you are really good at the side pockets, or maybe it is the bank shots. So you use those to your advantage and keep trying to get better at the other areas of the game. Once you have gotten good at the game - you never forget how to play another game. Sometimes, you are just about to win the game but you scratch on the black ball. How many times have you been so close to major success breakthrough and something small distracts you and turns you off course? So what you are searching for is not a key is a step you must take. And that step is action. You must be moving forward at all times, practicing and practicing the skill you want to master. Only through practice will you ever become successful. It will not happen overnight. It will not happen easily. You must work at; find out what is right for you and what is wrong for you. Some things will work, and when you find them - keep at them. Those things that don't work for you - practice at them. You will get better at those areas if you practice. Think about each of these as a skill you need to master before you can win tournaments: Sales skills, marketing, advertising, time management goal setting follow up idea generation partnerships delegation etc... So, stop your searching for that ever so elusive key to marketing and advertising success when it is right in front of you.Having a poor response is not the medium's fault. Often the problem is the message. Advertising is not a quick fix solution to marketing your company or product. It takes planning, testing and constant exposure to have an impact on your business. Done correctly, advertising can be a winning strategy.


http://www.marketingesp.com/


Marketing Management - MB0030 Conclusion

The goal of advertising is to cost-effectively reach a large audience and attract customers. If done correctly, advertising can enhance the success of your business. Here are 10 advertising tips to pay attention to:1. Go after your target audience: An advertising campaign should be geared

to your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of your potential customers.

2. Use One Message: A high response rate ad usually conveys a single message. NordicTrack's message of the "World's Best Aerobic Exerciser" was simple and compelling. Your small business advertising needs to quickly communicate its core message in 3 seconds or less. If you are fearful and overwhelmed by technology, which computer book do you buy? "DOS for Dummies" began a best-selling phenomena because its message was easily understood and to the point.

3. Establish an image: You can recognize the McDonald's arches while whizzing by on the highway. Likewise, there are plenty of products that you recognize by their packaging or logo. Image counts when it comes to advertising and promoting your business. Too many advertisers do not work to build a consistent image.

4. Don't try to be everything to everyone: No product or service will appeal to everyone. Many business owners, including corporate executives, try to come up with ways to reach every market. Typically, this does not work. It can spell disaster for small businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be everything you can be to that audience.

5. Test your ads in advance: If you have the time or money to invest in focus groups, you should test your ads on other people. Do they understand and accept the message that you are trying to convey? There are other less-expensive ways to test your ads as well: questionnaires, for example.

6. Monitor your ads: It is very easy to ask new customers or clients where they heard about you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to know which ads generate business.



Marketing Management - MB00307. Think outside the square: there are a variety of ways to get the attention of

your audience by standard (eg press ad) and creative (eg spruiking in Rundle Mall) means.

8. Create Curiosity: Successful business advertising does not sell a product or service. NordicTrack's ads sold the free video. Once a potential customer watched the video, they contacted the company for more information. The end result, millions of dollars of sales. Create ads that generate interest and make the customer want more information.

9. Keep your message simple: Ensure your call to action is clear. What is the most important part you'd like your audience to read or hear and how would you like them to respond? This should form the basis of your ad/s in terms of content, look and feel.

10.Identify which advertising tool is best: For example, classified ads fuel some businesses while others use flier distribution effectively. For restaurants, local newspaper ads are effective because most restaurant patrons live within a three- to five-mile radius.

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



Marketing Management - MB0030Market. 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 theadvertisements 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.In India, the local fare offers a wide variety of snack options, ranging from roasted banana wafers and soya chaklis (crispy savory spirals) to samosas (pastries filled with potatoes/peas). These "namkeens" (snacks) are typically eaten as a side dish with meals or make great accompaniments to tea, coffee, and other beverages. Of course, these snacks vary by region, with each having its own "special" recipe.

“[This Cheeto-like snack adapted to local tastes] helped create a bridge category between Indian namkeens (snacks) and Western offerings like potato chips [and cheese balls]”, says Deepika Warrier, Marketing Director, PepsiCo Holdings India.

Since its inception, this strangely addictive snack has been a huge success among Indian consumers, with recent plans to take this locally developed snack food brand global. While a soft launch has already been made, with the brand available at Indian grocery stores in the US and UK, a large scale launch is on the agenda. As Indra Nooyi, CEO of PepsiCo, mentions in an interview to rediff.com, “Kurkure will retain its basic Indian flavor [in its overseas journey], but will be




tweaked a bit [in areas like seasonings] to suit the palate of international consumers.”

So what has shaped Kurkure’s success in India so that even its parent company wants a bite of it?

“Flavor innovations, affordable price points and an excellent customer connect through a 360 degree communication approach has helped the brand enjoy iconic brand salience in the snacks category,” observes an industry analyst.

Launched as a national brand, it was a challenge for the company to devise flavors that would appeal to regional taste buds. However, the focus on developing hot and tangy flavors that suit Indian taste palettes has helped win the hearts of Indian consumers.

Bearing this in mind, the company launched pan-Indian flavors like Masala Munch and Red Chili Chatka and local specialties like Tamatar Hyderabadi Style and Green Chutney Rajasthani Style. The Kurkure flavors draw inspiration from Indian spices and condiments and are available in six bold flavors.

In order to add further zing to its product portfolio, in January 2008, the company launched Kurkure Xtreme, a limited edition variant in two flavors—Risky Chilli and Electric Nimbu (lime). This was perhaps a move to outdo competition from ITC’s snack brand Bingo, which was launched in March 2007, in Indianized flavors like Tandoori Paneer Tikka (spiced cottage cheese) and Chatkila Nimbu Achaar (tangy lime pickle).

Bingo’s success in the market is backed by ITC’s strong distribution network, which allows it to stock its products in shops that previously did not sell snack food. Additionally, ITC Foods provides shopkeepers with plastic molded shelves that allow local vendors a convenient way to stock their product, and the company benefits by increased visibility for its brand. Taking a cue from its competition, Frito Lay India is focusing on unconventional retail points like cyber cafes and telephone booths, in order to increase brand visibility and product reach.

According to Warrier, “Bingo’s success has mirrored [Kurkure’s] strategy of developing locally relevant flavor.” Despite the competition, Warrier feels that the launch of Bingo has only helped grow the snack food category as a whole. She is confident that Kurkure’s product appeal, developed over the years, will allow the brand to continue to dominate the category.

Since snacking is mostly a hunger-driven impulse decision, staying fresh in the




consumer mind is very important. To maintain top of the mind recall among its customers the brand has undertaken several unique communication initiatives. The most recent, for example, is called "Chala Change ka Chakkar," which is an umbrella campaign for Frito Lay India’s entire product portfolio (Lay’s, Kurkure, Cheetos, Uncle Chipps, and Lehar). This promotion will allow chosen consumers to live a day in the life of an Indian Bollywood celebrity (who are the brand endorsers) like Juhi Chawla or Saif Ali Khan. The idea is to generate excitement around the brand and have it stand out in the clutter of existing brands.

The brand has undertaken similar promotions in the past. For instance, in 2004 it launched the "Kahani mein Kurkure" ("Crispiness in the Story") campaign, which was a take on Indian popular culture. The advertising campaign spoofed popular Indian TV shows like Jassi Jaissi Koi Nahin (Indian adaptation of American sitcom "Ugly Betty") to appeal to Indian housewives, the largest target audience to watch these programs.

In addition to targeting housewives, who play a significant role in making purchase decisions, the brand appeals to the Indian family as a whole. The "Kurkure Chai Time Achiever’s Award" was a contest launched by the brand where families were invited to submit interesting recipes made with Kurkure. The winning family would have the opportunity to be famous and have their photograph featured on one million Kurkure packs.

This direct marketing campaign was supported through television advertising, where Indian celebrity Juhi Chawla, Kurkure’s brand ambassador, announced the winners of the competition. The contest was also publicized through the website http://kurkure.co.in, specifically designed to promote the contest. Using the website as a strategic tool for promotion helped the brand appeal to a young audience that spends a considerable amount of time surfing the web.

Another novel branding initiative was a tie-up with South Western Railways in India to have trains called the "Kurkure Express." These were special trains that operated only during the holiday season. The brand was featured on reservation charts, coach indication slips, and during any announcements about the train. This outdoor media was a unique way to target families who travel by train during the holidays.

Answer B.

One of Frito-Lay’s hallmarks is continuously offering a wide variety of innovative snack choices. While Lay’s Classic, Doritos Nacho Cheese and


http://www.doritos.com/

http://www.lays.com/



Cheetos Crunchy are longtime favorites, company ’ve learned that consumers want variety -- from new flavors of our original snacks to new brands and healthier options. So, we often introduce new products.

As you might expect, not every snack sells equally well and not every new product is successful. Decisions about what is available on store shelves varies by location, depending on consumer interest, basically, what our consumers buy. If a product does not sell well, it may be discontinued. And, because consumers in different parts of the country have different flavor and snacking preferences, some products are only available in certain areas.

For instance, Tostitos Light was recently discontinued because of very slow sales. As a result, consumers have been sharing their disappointment with company. It’s always a tough decision to discontinue a product or offer it in select locations, since we know it’s a favorite for someone.

Company also often receive questions from consumers about where to buy a specific Frito-Lay product. If you are looking for a specific product in your area, you can search by your zip code using the “Product Locator” on www.fritolay.com (“where to buy” link). It’s the same system we use to answer questions when consumers call and e-mail us, asking where to find a specific snack. company update the system weekly to provide consumers with the latest information.

The Frito-Lay Web site has been designed to provide consumers with easy access to some of the most common questions that my team answers everyday in Consumer Affairs. If you can’t find the answer to your question, or have a comment to share with company, company like to hear from you (click here to be linked to our “Contact Us” form). Company will do their best to answer your questions and concerns in a prompt manner. Whether positive or negative, the comments company hear from their consumers are invaluable to company and are shared broadly within the company.


http://www.fritolay.com/about-us/contact-us.html

http://www.fritolay.com/about-us/contact-us.html

http://www.fritolay.com/

http://www.fritolay.com/

http://www.fritolay.com/our-snacks/where-to-buy.html

http://www.awomansworld.com/

http://www.truenorthsnacks.com/

http://www.snacks.com/good_fun_fritolay/2009/03/reaching-out-to-mexican-consumers.html

http://www.cheetos.com/

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