Description
marketing campaign problem based case
Dear All, Please find enclosed the first case I am sending. This is an actual case of 2002 - Franklin India Bluechip Mutual Fund Case Study. Note the following: • The case background statement which covers the relevant aspects of the market (recall what we covered in Market Analysis etc) • • • The pertinent factors of the markets have been higlighted The demand nature analysis The problem identification
While reading the case, try and identify the following: • • • • • Nature of Demand Environment Analysis Target Audience Profiling Objective Statement The overall strategy
This will enable all of you to visualise the concepts we have studied in the class Questions to be discussed: • • • • Communication Objective: Awareness / Comprehension etc Specific Segmentation Objective: Build Selective Demand or Primary Demand? Decipher the possible positioning of the Mutual Fund on the basis of given data Design the creative strategy - the media allocation, choice of appeal, message format
We shall be discussing this case on Wednesday in the Major class and on Saturday in the Minor Class. This case will also expose you to some ideas about how to implement your projects and serve as a dry run for all you. Also check your mails for further 2 cases from 2 other industries
FRANKLIN INDIA BLUECHIP FUND
BACKGROUND In September 2002 the market sentiment towards equities as an asset class was extremely poor and investor confidence was at an all time low. In the case of equities, since stock markets had been down the previous couple of months people were reluctant to invest, not seeing any signs of recovery and for the reason that they had burnt their fingers in the past News of corporate governance issues in the US, border tensions in India coupled with limited demand for large cap stocks in the light of continuous selling pressure from bodies like the UTI to meet redemption pressures as also FIIs who had reduced their India exposure, simply meant that demand was less than supply While all research pointed to the fact that equity markets were poised to take off, stock market valuations looked attractive and fundamentals of the economy were looking strong, it did not help investor sentiment in any way, even though equities made ample sense. The opportunity / Challenge was to reinstate belief in the equity market and demonstrate that it was the right time to get back into equities with an investment option like the Franlin India Bluechip fund, given the following support: ? Consistent Performance- The oldest private sector equity mutual fund which has a nine year track record and despite market volatility had time and again consistently generated a good return and outperformed its benchmark the BSE Sensex ? Equities have the potential to give the highest return over the long term, one of the most important aspects when investing to meet financial goals. The Franklin India Bluechip fund had an unparalleled record having given 21% pa return over a 9 year period ? FICBCF's investment universe comprised equality large cap bluechip stocks that have strong fundamentals and strong management focus as investors seek safety in stocks of proven companies. These by their steady nature were usually the first to rise up when the markets look up, while preserving value in falling markets
MARKETING CHALLENGE ? The worst time equities: ? The much hyped IT bubble had burst and the UTI fiasco added fuel to fire ? Consequently the stock market crashed and was in as bad a shape as after the Harshad Mehta Scam ? Some statements from financial newspapers ? Sensex is currently at the same levels as it was 10 years ago (Financial Express 15 11 02) ? 41 UTI schemes have Rs. 11655 crore negative reserves (Business Standard 1 02 02) ? MF for sale – or should that read “dreams turned ashes” (Economic Times 28 01 02) ? MF Equity Investments held up as inflows drop (Financial Express 15 11 02) ? Equity Mutual Funds ? Investors had lost complete faith in Equity Mutual Funds Direct Equities and any
new age instrument which promised higher returns at some risk ? As a result, an MF which invested in equities would be the worst possible combination ? An Overcrowded market ? There were over 100 equity funds in the country vying for the same consumer ? These included funds from some of the most well established and trusted institutions ? The foreign status of FT CAMPAIGN OBJECTS The objective was to become the preferred equity fund by driving investments into Bluechip in terms of ? Sales ? New Accounts TARGET AUDIENCE ? 30 – 60 year old male SEC A and B ? All the investor s who had exited MF/Shares post the fiasco and had thus grown skeptical of Equity Mfs and Direct Equity Markets. They had declared the Unsafe ? Potential investors, who- influenced by the market sentiment, were only looking at FD and other conservative and safe investment options CREATIVE STRATEGY A skeptical investor: ? The investor was evaluating everything with extreme skepticism ? He was stricter than ever in his evaluation criteria. Even a rock solid track record might not have been enough. ? He refused to look at an instrument it is so much as mentioned the word RISK or HIGH RETURNS. Thus he was returning to Fixed Deposits, and was foregoing returns for higher safety Bluechip – A radical choice: ? At a time like this, the conventional wisdom suggested a choice of Fixed Income or Debt instruments – avenues, which would ensure capital preservation. Because these would address the consumer need immediately. But this would at best be a short-term measure ? The consumer had lost faith in the market. This the only real solution as to reinstate his belief in the market, rather than in a particular fund ? Bluechip could do the above but was a radical choice, since the fund itself was part of the much-maligned equity market. But being among the most consistent funds even through the turmoil, it was the only hope to pull back the consumer Bluechip – The 2 options ? Talk about the consistent high returns of Bluechip – a benefit, which directly addressed the consumer need, But will the consumer empathise with this? Will they take it on face value and trust us (an MF) ? Second, confront the consumer mindset of overcaution and use consistency as a
support Since the real problem was the consumer mindset, it was required that we address it instead of promoting the product promise. Therefore the creative strategy was to position Bluechip as …... (Please note that the Media budget was very limited – Rs. 2 Crore)
doc_373507152.doc
marketing campaign problem based case
Dear All, Please find enclosed the first case I am sending. This is an actual case of 2002 - Franklin India Bluechip Mutual Fund Case Study. Note the following: • The case background statement which covers the relevant aspects of the market (recall what we covered in Market Analysis etc) • • • The pertinent factors of the markets have been higlighted The demand nature analysis The problem identification
While reading the case, try and identify the following: • • • • • Nature of Demand Environment Analysis Target Audience Profiling Objective Statement The overall strategy
This will enable all of you to visualise the concepts we have studied in the class Questions to be discussed: • • • • Communication Objective: Awareness / Comprehension etc Specific Segmentation Objective: Build Selective Demand or Primary Demand? Decipher the possible positioning of the Mutual Fund on the basis of given data Design the creative strategy - the media allocation, choice of appeal, message format
We shall be discussing this case on Wednesday in the Major class and on Saturday in the Minor Class. This case will also expose you to some ideas about how to implement your projects and serve as a dry run for all you. Also check your mails for further 2 cases from 2 other industries
FRANKLIN INDIA BLUECHIP FUND
BACKGROUND In September 2002 the market sentiment towards equities as an asset class was extremely poor and investor confidence was at an all time low. In the case of equities, since stock markets had been down the previous couple of months people were reluctant to invest, not seeing any signs of recovery and for the reason that they had burnt their fingers in the past News of corporate governance issues in the US, border tensions in India coupled with limited demand for large cap stocks in the light of continuous selling pressure from bodies like the UTI to meet redemption pressures as also FIIs who had reduced their India exposure, simply meant that demand was less than supply While all research pointed to the fact that equity markets were poised to take off, stock market valuations looked attractive and fundamentals of the economy were looking strong, it did not help investor sentiment in any way, even though equities made ample sense. The opportunity / Challenge was to reinstate belief in the equity market and demonstrate that it was the right time to get back into equities with an investment option like the Franlin India Bluechip fund, given the following support: ? Consistent Performance- The oldest private sector equity mutual fund which has a nine year track record and despite market volatility had time and again consistently generated a good return and outperformed its benchmark the BSE Sensex ? Equities have the potential to give the highest return over the long term, one of the most important aspects when investing to meet financial goals. The Franklin India Bluechip fund had an unparalleled record having given 21% pa return over a 9 year period ? FICBCF's investment universe comprised equality large cap bluechip stocks that have strong fundamentals and strong management focus as investors seek safety in stocks of proven companies. These by their steady nature were usually the first to rise up when the markets look up, while preserving value in falling markets
MARKETING CHALLENGE ? The worst time equities: ? The much hyped IT bubble had burst and the UTI fiasco added fuel to fire ? Consequently the stock market crashed and was in as bad a shape as after the Harshad Mehta Scam ? Some statements from financial newspapers ? Sensex is currently at the same levels as it was 10 years ago (Financial Express 15 11 02) ? 41 UTI schemes have Rs. 11655 crore negative reserves (Business Standard 1 02 02) ? MF for sale – or should that read “dreams turned ashes” (Economic Times 28 01 02) ? MF Equity Investments held up as inflows drop (Financial Express 15 11 02) ? Equity Mutual Funds ? Investors had lost complete faith in Equity Mutual Funds Direct Equities and any
new age instrument which promised higher returns at some risk ? As a result, an MF which invested in equities would be the worst possible combination ? An Overcrowded market ? There were over 100 equity funds in the country vying for the same consumer ? These included funds from some of the most well established and trusted institutions ? The foreign status of FT CAMPAIGN OBJECTS The objective was to become the preferred equity fund by driving investments into Bluechip in terms of ? Sales ? New Accounts TARGET AUDIENCE ? 30 – 60 year old male SEC A and B ? All the investor s who had exited MF/Shares post the fiasco and had thus grown skeptical of Equity Mfs and Direct Equity Markets. They had declared the Unsafe ? Potential investors, who- influenced by the market sentiment, were only looking at FD and other conservative and safe investment options CREATIVE STRATEGY A skeptical investor: ? The investor was evaluating everything with extreme skepticism ? He was stricter than ever in his evaluation criteria. Even a rock solid track record might not have been enough. ? He refused to look at an instrument it is so much as mentioned the word RISK or HIGH RETURNS. Thus he was returning to Fixed Deposits, and was foregoing returns for higher safety Bluechip – A radical choice: ? At a time like this, the conventional wisdom suggested a choice of Fixed Income or Debt instruments – avenues, which would ensure capital preservation. Because these would address the consumer need immediately. But this would at best be a short-term measure ? The consumer had lost faith in the market. This the only real solution as to reinstate his belief in the market, rather than in a particular fund ? Bluechip could do the above but was a radical choice, since the fund itself was part of the much-maligned equity market. But being among the most consistent funds even through the turmoil, it was the only hope to pull back the consumer Bluechip – The 2 options ? Talk about the consistent high returns of Bluechip – a benefit, which directly addressed the consumer need, But will the consumer empathise with this? Will they take it on face value and trust us (an MF) ? Second, confront the consumer mindset of overcaution and use consistency as a
support Since the real problem was the consumer mindset, it was required that we address it instead of promoting the product promise. Therefore the creative strategy was to position Bluechip as …... (Please note that the Media budget was very limited – Rs. 2 Crore)
doc_373507152.doc