MinI casE stUDiES...

State Bank of India - The VRS Story

Abstract

The caselet ‘The State Bank of India – The VRS Story’ explains the developments after leading Indian public sector bank SBI decided to implement a VRS. The case examines the reasons for SBI’s employees protesting against the VRS and the post-VRS scenario.

Issues:

» In spite of the manpower shortage, why did the SBI implement the VRS?

Introduction

The SBI was the largest bank in India in terms of network of branches, revenues and workforce. It offered a wide range of services for both personal and corporate banking. The personal banking services included credit cards, housing loans, consumer loans, and insurance. For corporate banking, SBI offered infrastructure finance, cash management and loan syndication. Over the years, the bank became saddled with a large workforce and huge NPAs.




According to reports, staff costs in 1999-2000 amounted to Rs. 4.5 billion as against Rs. 4.1 billion in 1998-99. Increased competition from the new private sector banks further added to SBI’s problems. The new private sectors banks had effectively leveraged technology to make up for their size.

Though SBI had 9,000 branches, a mere 22% of those (1935 branches) were connected through Internet. In contrast all of HDFC Bank’s 61 branches were connected through internet....

Questions for Discussion:

1. The outcome of the SBI VRS has highlighted the need for proper manpower planning and HRD policies in Indian public sector banks. Discuss the various steps to be taken by the SBI in the post VRS scenario?

2. The results of the SBI VRS were not in line with the management’s expectations. Comment on the above statement and discuss the effects of the VRS on SBI.
 
Recruiting the Cisco Way

Abstract

The caselet examines the changes brought about by global networking major, Cisco, in its recruitment policies in the mid-1990s. It details the various tools adopted by the company to attract the best talent and examines how the company benefited from them.

Issues:

» The importance of human resources in the information technology industry and the issues involved in recruiting and retaining them.
» The need for updating the recruitment policies of an organization in tune with changes in the business environment.

Introduction

Cisco sources revealed that the company had a policy of attracting the ‘top 10-15%’ people in the networking industry. It believed that if it could get the best people in the industry and retain them, it would remain the industry leader.




According to Cisco’s vision statement, “Attracting, growing and retaining great talent is critical to sustaining Cisco’s competitive advantage.” Thus, effective recruitment was used as a powerful strategic weapon by the company. The company began to use revolutionary techniques like the ‘build-the-buzz’ strategy, which was centered on the primary market for its products, i.e. the Internet....

Questions for Discussion:

1. ‘The changing dynamics of the global infotech industry necessitated Cisco’s decision to change its recruitment process.’ Comment on the above statement highlighting the company’s decision to adopt innovative recruitment methods.

2. The ‘Friends,’ ‘Amazing People’ and ‘Profiler’ initiatives were designed to integrate the Internet effectively with Cisco’s recruitment philosophy to attract the best talent in the industry. Analyze the various recruitment strategies adopted by Cisco.
 
LAW CASE STUDY
Mr. Anil of Mumbai sends a letter by post to Mr. Sunil of Delhi offering to sell his Maruti 800 cc car for Rs. 2,00,000.This letter is posted on 1st sept. '03 and reaches Mr. Sunil on 7th sept. '03.He sends his acceptance by post on 10th sept. '03 but Mr. Anil receives this letter of acceptance on 15th sept. '03.

Answer the foll. quests:
a) What is an offer? Is it different from invitation to an offer?
b) When is the communication of offer complete?When is the communication of acceptance complete as against the (i)offerer (ii)acceptor?
c) If Mr. Anil sends a telegram on 8th sept. '03 revoking his offer and this telegram reaches Mr. Sunil before the letter of acceptance is posted;is revocation of offer valid?
d) If Mr. Sunil sends a telegram on 14th sept. '03 revoking his acceptance and this telegram reaches Mr. Anil before he receives letter of acceptance;is revocation of acceptance valid?
e) If there is simultaneous delivery of letter of acceptance and the telegram containing revocation of acceptance;which will be effective?
 
Business Ethics Case Studies:
e-Health and Commercial Genetic Testing

Veritas Diagnostics is a medical diagnostics company specializing in adult genetic susceptibility testing for a range of heritable and complex genetic conditions. Their main business involves testing for the mutations associated with cystic fibrosis, hereditary kidney disease, as well as breast, ovarian and colorectal cancer.

They have a well-staffed, well-run, sophisticated genetics laboratory capable of rapidly processing hundreds of samples for analysis on their many automated high-throughput DNA sequencers. Veritas considers their testing methodology to be the 'gold standard' and to that end, implement the latest testing technologies as they become available. Further, Veritas maintains good working relations with a number of leading university research laboratories, with whom they regularly verify their testing methods.

Veritas' chief clientele to date has consisted of hospitals, physicians, and private insurers ordering genetic testing for patients. The company has become known for providing quick, accurate, and confidential services at a competitive price. The Veritas Board of Directors has recently decided to expand the existing market and begin offering commercial genetic testing services direct-to-consumer through the company website.
As corporate Ethics Officer, you've been asked to work with the Vice President in charge of the new Direct-to-Consumer division to ensure that services are provided in an ethical manner. As far as the VP is concerned, the only ethical issue is consumer privacy, and given that Veritas already has privacy rules in place for dealing with physicians, hospitals, and insurance companies, the VP does not see that much needs to be changed for direct-to-consumer services.

You, however, see the situation as being more complex, and so are faced with convincing the VP that the following ethical questions must also be addressed:

Should Veritas Diagnostics provide in-house genetic counselling, and can this counselling be unbiased? If not, should arrangements be made with private and public genetic counselling programs, and who should pay for it?
Should Veritas have a formal ethics policy statement dealing specifically with issues related to marketing genetic tests directly to consumers, and should it be online?
What are the information privacy issues for consumers as compared with physicians or hospitals?
- E.g., should 'cookies' be used on the website, to store information about potential customers? Will the information gathered be used only for improved customer service or also sold to third parties?
- Who owns the genetic material used for testing - the consumer or Veritas? Can the material be sold for research purposes?
What limits on direct-to-consumer genetic testing are imposed by national or international regulations or oversight mechanisms ?
How should Veritas be working with various national health care institutions...as a contractor of services or as a competitor?
Will Veritas accept samples sent by employers? That is, will Veritas facilitate questionable workplace genetic testing?
Where can Veritas look to find 'best practices' in this area?
 
thnks to the fellow members who appreciated the efforts...

heres other case studies...
The case of M/s Challenger & their Bats
Identification of the Problem:

1.What policy should the company adopt about product differentiation?
2.How can the market be segmented?
3.Other recommendations.

Important points:

Following are the important points in the case:
1.M/s Challenger is a leader in market with respect to selling cricket bats, with 60% market share.
2.They use best quality wood from Kashmir to produce the bats.
3.They export in 20 different countries which account for 30% of their total sales.
4.They have 55 models of cricket bats, price ranging from Rs.150 to Rs.1750.
5.M/s Challenger uses the pictures of the popular cricket stars to promote the sale of the cricket bats.

Assumptions:

Following are the important assumptions in the case:
1.The company is flexible to change their strategies.
2.The competitors promotional and other strategies remain the same.
3.The political scenario of the different countries remains the same.


Solution/s:

(1) Product Differentiation:

Product Differentiation is the strategic marketing initiative taken by the company to differentiate its product/s from the competitor’s product.
Products can be differentiated on the following basis:
a.Product Quality, Features & Benefits
b.Product Service
c.Product Channels of Distribution
d.Product Image
e.Product Personnel

a. Product Quality, Features & Benefits:
M/s Challenger can differentiate their product on the basis of the quality, features and benefits of their bats. For example, they can give more emphasis on the material used to prepare those bats, viz. best quality wood from the state of Kashmir.
M/s Challenger can also highlight the unique features of its bat like blade, thickness, weight, etc.

b. Product Image:
M/s Challenger can create a unique position for their products by highlighting the image of the bats. As the bats come in a vide variety of price range, they are suitable for all the types of consumers.
M/s Challenger should use the pictures of the cricketers who are widely popular and generally in form. This will reduce the number of cricketers’ pictures and hence will lead to less choice and eventually less inventory.

(2) Market Segmentation:

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.

The market can be segmented on the basis of:
1. Geographic variables
a.region of the world or country, East, West, South, North, Central, coastal, hilly, etc.
b.country size: Metropolitan Cities, small cities, towns.
c.Density of Area Urban, Semi-urban, Rural.
d.climate Hot, Cold, Humid, Rainy.

2. Demographic variables
a.age
b.gender Male and Female
c.sexual orientation
d.family size
e.family life cycle
f.Education Primary, High School, Secondary, College, Universities.
g.income
h.occupation
i.education
j.socioeconomic status
k.religion
l.nationality/race
m.language

3. Psychographic variables
a.personality
b.life style
c.value
d.attitude
e.Behavioural variables
f.benefit sought
g.product usage rate
h.brand loyalty
i.product end use
j.readiness-to-buy stage
k.decision making unit

The company can therefore segment their market on the basis of:
i.Country
ii.Age
iii.Sex
iv.Income
v.Nationality/Race
vi.Product usage rate


(3) Other Recommendations:
Other Recommendations that can be suggested are:
(i)More emphasis on creating a strong brand image.
(ii)Promotional Strategies.

Implementation:

1. Product Differentiation:
The product differentiation on the basis of features, quality and benefits can be implemented by highlighting these advantages in the marketing, promotional and advertising strategies.
Product image can be built by using the pictures of popular cricket stars who are generally playing good. Ex-cricketers’ photographs can also be used.


2. Market Segmentation:
The company can segment the market on the basis of Nationality, Age, Sex, Price and Product Usage Rate.


Conclusion:
By adopting the above mentioned strategies, the company M/s Challenger can minimise its current problems.
 
M/s MAC India’s Health Drink

Identification of the problem:

1.Marketing Mix strategy for M/s MAC India’s health drink.
2.Market Segmentation Strategy for M/s MAC India’s health drink.

Important Points:

a.M/s MAC India is a 100% subsidiary of a USA based parent company.
b.M/s MAC India wants to launch a health drink for sports people.
c.There is only Parle’s Frooti which is successful; besides the beverage market size is 720 million litres which includes soft drinks, tea, coffee & mineral water.
d.M/s MAC India initially intends to process 250 tons which it will extend to 2000 tons by the 5th year, also if this drink succeeds, then they will launch Iced Tea.

Assumptions:

a.M/s MAC India has the financial strength and marketing support to survive in the initial years of operations in India.

Solution/s of the Case:

(1) As per the market demand, we are required to suggest M/s MAC India, the Marketing Mix Strategy, which is the four P’s:
a.Product
b.Place
c.Price
d.Promotion

a. Product:
The company can start by stating that the product, ‘Health Drink’ is a very novel concept. It gives energy as it contains real fruit and is more thicker than the other drinks. It can be made available in various colours and flavours, such as:
Strawberry – Dark Magenta
Orange – Orange
Pineapple – Yellow
Apple – Pink/Red



b. Price:
The company can follow the product-quality relationship pricing objective, wherein the quality of the product is higher than the competitors’ quality. This can be done when the target market is less price sensitive when the product is of special quality.

c. Promotion:
The company can employ the promotional tools with the objective of produce ‘Pull Strategy’, where the customers will ask for the product themselves.
For the promotion purpose, the company can use the Non-Personal Communication Channels as a media, such as:
Television
Radio
Newspaper
Distributing free samples
Coupons

d. Place:
The distribution channel for M/s MAC India can be like this:
Manufacturer
Carrying & Forwarding Agents/Agencies
Stock storing & stock keeping units
Retailer
Customer

(2) Market Segmentation Strategy:
Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.

The market can be segmented on the basis of:
1.Geographic variables
a.region of the world or country, East, West, South, North, Central, coastal, hilly, etc.
b.country size: Metropolitan Cities, small cities, towns.
c.Density of Area Urban, Semi-urban, Rural.
d.climate Hot, Cold, Humid, Rainy.

2. Demographic variables
a.age
b.gender (Male and Female)
c.sexual orientation
d.family size
e.family life cycle
f.Education Primary, High School, Secondary, College, Universities.
g.income
h.occupation
i.education
j.socioeconomic status
k.religion
l.nationality/race
m.language

3. Psychographic variables
a.personality
b.life style
c.value
d.attitude
e.Behavioural variables
f.benefit sought
g.product usage rate
h.brand loyalty
i.product end use
j.readiness-to-buy stage
k.decision making unit

The market for M/s MAC India can be segmented as follows:
i.Age Group (9 to 19).
ii.Age Group (For Senior Citizens).
iii.People who play sports.
iv.People with hectic lifestyles.


Implementation:

Marketing Mix:
The Indian beverage market size is 720 million liters. M/s MAC India should take care that their health-based-drink should not be positioned against any existing brands, like Frooti. It should be first positioned as a apple-based drink, as apple is associated with health, by a large number of people. Later on, it can come up with different flavours like, orange, lime, pineapple, etc. Purchasing these fruits at the respective places they are produced in abundance, will be economical. The supply can be in different markets, where they can be sold reasonably. Later, they can expand as the market demands.


Market Segmentation:
This health drink by M/s MAC India is suitable for all the general public. The natural and sweet flavours can make this product a favourite amongst the young generation.


Conclusion:
By adopting the above mentioned strategies, the company M/s MAC India can minimise its current problems.
 
dear frienz,
thr are lotsa case studies uploaded on mp nt only in case studies hub but also in individual subject sections...so kindly use the search option for the case studies you require..in case u dont get;then u might post here for those.....


harshad.jm said:
hey...does anyone has case studies on coke/pepsi?>>?
Click to expand...

here are few links for u....brand wars of coke n pepsi-http://www.managementparadise.com/forums/showthread.php?t=658

coke vs. pepsi- http://http://www.managementparadise.com/forums/showthread.php?t=12475

case study on coke- http://http://www.managementparadise.com/forums/t12900-coco-colas-thirst-.html

nupurv said:
thnx but any case study on automobile sector
Click to expand...

links tht might be helpful to u....
Harley-Davidson Motor Company- http://www.managementparadise.com/forums/showthread.php?t=12621

tata indica:making of a small car- http://www.managementparadise.com/forums/t12902-tata-indica-the-making-of-the-small-car.html

honda- http://www.managementparadise.com/forums/t14952-case-study-on-honda.html

bain looks inside a japanese automaker- http://www.managementparadise.com/forums/t12893-bain-looks-inside-a-japanese-automaker.html

skoda- http://www.managementparadise.com/forums/t15143-case-study-on-skoda.html

ford- http://www.managementparadise.com/forums/t12512-ford.html

general motors- http://www.managementparadise.com/forums/showthread.php?t=12620

***and and and also rem. to scroll down while u chk these threads....coz thr will be related threads which might also help you..:smile:
 
The case of the Car Company

Identification of the Problem:

1.This company is fully product-oriented.
2.The Marketing Manager has to try and convince the chairman of the company about the marketing concepts which are purely customer-oriented.


Important points of the Case:

1.The Chairman of the Car company believes that the modern marketing concepts are useless.
2.The Head of the Design Department also has the same view and believes in ignoring customers’ viewpoints.
3.This car company has been concentrating only on the sales function.
4.A Marketing Manager is to be appointed.

to read more on solutions, conclusions..read d attached doc.
 
The case of Sugandha Mouth Fresheners Ltd.

Identification of the Problem:

1.Peoples’ growing belief that Sugandha Mouth Fresheners contain tobacco.
2.Fear of drop of sales of tobacco-based ‘Khusboo’.
3.Product Positioning for Sugandha & Khusboo.
4.Consumer education and awareness building.

Important Points:

1.Sugandha Mouth Fresheners do not contain tobacco.
2.‘Khushboo’ is an existing brand containing tobacco.
3.Khushboo has 50% market share for the last 5 years.
4.Sugandha Mouth Fresheners is a new brand, recently launched.


Assumptions:

Following are the important assumptions in the case:
1.The company is flexible to change their strategies.
2.The competitors promotional and other strategies remain the same.
3.The political scenario of the country remains the same.



Solution/s:

Product Positioning:
A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors.

Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions.

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.

Generally, the product positioning process involves:
a.Defining the market in which the product or brand will compete (who the relevant buyers are)
b.Identifying the attributes (also called dimensions) that define the product 'space'
c.Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
d.Determine each product's share of mind
e.Determine each product's current location in the product space
f.Determine the target market's preferred combination of attributes (referred to as an ideal vector)
g.Examine the fit between:
i.The position of your product
ii.The position of the ideal vector
h.Position

More generally, there are three types of positioning concepts:
A.Functional positions
a.Solve problems
b.Provide benefits to customers
c.Get favorable perception by investors (stock profile) and lenders
B.Symbolic positions
a.Self-image enhancement
b.Ego identification
c.Belongingness and social meaningfulness
d.Affective fulfilment
C.Experiential positions
a.Provide sensory stimulation
b.Provide cognitive stimulation

Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.


Implementation:

For Sugandha Mouth Fresheners and Khushboo, the company can position their product on the basis of:
i.USP, i.e., the unique features of the product must be highlighted very clearly.
ii.Sugandha Mouth Fresheners can be positioned as a substitute for herbal products, as it contains, tulsi, eliachi, etc.
iii.Proper knowledge can be given to the customer through catchy slogans and promotional tools.


Conclusion:

By adopting the above mentioned strategies, the Sugandha Mouth Fresheners & Khushboo can minimise their current problems.
 
Crunchy & crispy Ltd.

Identification of the problem:

1.To develop marketing strategies, market segmentation, target marketing & product positioning low price products are a problem.
2.To develop branding strategies.

Important Points:

1.Crunchy & crispy Ltd. are in the processed food business and facing competition from unorganised sector.
2.Their existing brand potato chips has been badly affected due to mushroom growth of smaller units with low overhead. These smaller units can afford to keep the price low.
3.The Marketing Manager has an idea in his mind of introducing a new product, i.e., Honey coated Peanuts.
4.He needs to make marketing strategies for marketing segmentation, target market and product positioning with branding strategy.

Solutions/s:

There are several stages in the new product development process:
A. Idea Generation:
a.Ideas for new products can be obtained from customers (employing user innovation), the company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or through a policy of Open Innovation. Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features.
b.Formal idea generation techniques can be used, such as attribute listing, forced relationships, brainstorming, morphological analysis and problem analysis

B. Idea Screening
a.The object is to eliminate unsound concepts prior to devoting resources to them.
b.The screeners must ask at least three questions:
i.Will the customer in the target market benefit from the product?
ii.Is it technically feasible to manufacture the product?
iii.Will the product be profitable when manufactured and delivered to the customer at the target price?

C. Concept Development and Testing
a.Develop the marketing and engineering details
b.Who is the target market and who is the decision maker in the purchasing process?
c.What product features must the product incorporate?
d.What benefits will the product provide?
e.How will consumers react to the product?
f.How will the product be produced most cost effectively?
g.Prove feasibility through virtual computer aided rendering, and rapid prototyping
h.What will it cost to produce it?
i.test the concept by asking a sample of prospective customers what they think of the idea

D. Business Analysis
a.Estimate likely selling price based upon competition and customer feedback
b.Estimate sales volume based upon size of market
c.Estimate profitability and breakeven point

E. Beta Testing and Market Testing
a.Produce a physical prototype or mock-up
b.Test the product in typical usage situations
c.Conduct focus group customer interviews or introduce at trade show
d.Make adjustments where necessary
e.Produce an initial run of the product and sell it in a test market area to determine customer acceptance

F. Technical Implementation
a.New program initiation
b.Resource estimation
c.Requirement publication
d.Engineering operations planning
e.Department scheduling
f.Supplier collaboration
g.Resource plan publication
h.Program review and monitoring
i.Contingencies – ‘what-if’ planning

G. Commercialization (often considered post-NPD)
a.Launch the product
b.Produce and place advertisements and other promotions
c.Fill the distribution pipeline with product
d.Critical path analysis is most useful at this stage

Market Segmentation:
The market can be segmented on the basis of:
1. Geographic variables
e.region of the world or country, East, West, South, North, Central, coastal, hilly, etc.
f.country size: Metropolitan Cities, small cities, towns.
g.Density of Area Urban, Semi-urban, Rural.
h.climate Hot, Cold, Humid, Rainy.

2. Demographic variables
n.age
o.gender Male and Female
p.sexual orientation
q.family size
r.family life cycle
s.Education Primary, High School, Secondary, College, Universities.
t.income
u.occupation
v.education
w.socioeconomic status
x.religion
y.nationality/race
z.language
3. Psychographic variables
l.personality
m.life style
n.value
o.attitude
p.Behavioural variables
q.benefit sought
r.product usage rate
s.brand loyalty
t.product end use
u.readiness-to-buy stage
v.decision making unit


Product Positioning:

A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors.

Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions.

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.

Generally, the product positioning process involves:
a.Defining the market in which the product or brand will compete (who the relevant buyers are)
b.Identifying the attributes (also called dimensions) that define the product 'space'
c.Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
d.Determine each product's share of mind
e.Determine each product's current location in the product space
f.Determine the target market's preferred combination of attributes (referred to as an ideal vector)
g.Examine the fit between:
h.The position of your product
i.The position of the ideal vector
j.Position

More generally, there are three types of positioning concepts:
A. Functional positions
a.Solve problems
b.Provide benefits to customers
c.Get favorable perception by investors (stock profile) and lenders
B. Symbolic positions
a.Self-image enhancement
b.Ego identification
c.Belongingness and social meaningfulness
d.Affective fulfilment
C. Experiential positions
a.Provide sensory stimulation
b.Provide cognitive stimulation


Conclusion:
By adopting the above mentioned strategies, the company Crunchy & Crispy Ltd. can minimise its current problems.
 
Sales Promotion Strategy for Ice-Cream

Identification of the Problem:

1.Sales Promotion Strategy for Ice-Cream ‘Koool’
2.Advertising Strategy for Ice-Cream ‘Koool’.


Important Points of the Case:

1.Existing Brand of Ice-Cream ‘Koool’.
2.New Sales Promotion and Advertising Strategy for the company.


Solution/s:

Sales Promotion Strategy:

Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.
Examples include:
coupons
discounts and sales, including Blue Cross Sale
contests
point of purchase displays
rebates
free samples (in the case of food items)
gifts and incentive items
free travel, such as free flights

Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.

Advertising Strategy:

Advertising is paid communication through medium in which the sponsor is identified and the message is controlled. Variations include publicity, public relations, product placement, sponsorship, underwriting, and sales promotion. Every major medium is used to deliver these messages, including: television, radio, movies, magazines, newspapers, the Internet, and billboards. Advertisements can also be seen on the seats of grocery carts, on the walls of an airport walkway, on the sides of buses, heard in telephone hold messages and in-store PA systems. Advertisements are usually placed anywhere an audience can easily and/or frequently access visuals and/or audio, especially on clothing.

Conclusion:

By adopting the above mentioned strategies, the company can recreate its brand ‘Koool’ successfully.
 
The Launch of a new Toothpaste brand.

Identification of the Problem:

1.Launch of a new product (Toothpaste)
2.Evolution of a marketing communication strategy for the new brand.
3.Promotional Budget.

Important Points of the Case:

1.Launch of a new product (Toothpaste)
2.Highly crowded Toothpaste market with multiple brands.

Solution/s:

(1) Launching a new product:

There are several stages in the new product development process:

A. Idea Generation:
a.Ideas for new products can be obtained from customers (employing user innovation), the company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or through a policy of Open Innovation. Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features.
b.Formal idea generation techniques can be used, such as attribute listing, forced relationships, brainstorming, morphological analysis and problem analysis

B. Idea Screening:
a.The object is to eliminate unsound concepts prior to devoting resources to them.
b.The screeners must ask at least three questions:
i.Will the customer in the target market benefit from the product?
ii.Is it technically feasible to manufacture the product?
iii.Will the product be profitable when manufactured and delivered to the customer at the target price?

C. Concept Development and Testing
a.Develop the marketing and engineering details
b.Who is the target market and who is the decision maker in the purchasing process?
c.What product features must the product incorporate?
d.What benefits will the product provide?
e.How will consumers react to the product?
f.How will the product be produced most cost effectively?
g.Prove feasibility through virtual computer aided rendering, and rapid prototyping
h.What will it cost to produce it?
i.test the concept by asking a sample of prospective customers what they think of the idea

D. Business Analysis
a.Estimate likely selling price based upon competition and customer feedback
b.Estimate sales volume based upon size of market
c.Estimate profitability and breakeven point

E. Beta Testing and Market Testing
a.Produce a physical prototype or mock-up
b.Test the product in typical usage situations
c.Conduct focus group customer interviews or introduce at trade show
d.Make adjustments where necessary
e.Produce an initial run of the product and sell it in a test market area to determine customer acceptance

F. Technical Implementation
a.New program initiation
b.Resource estimation
c.Requirement publication
d.Engineering operations planning
e.Department scheduling
f.Supplier collaboration
g.Resource plan publication
h.Program review and monitoring
i.Contingencies – ‘what-if’ planning

G. Commercialization (often considered post-NPD)
a.Launch the product
b.Produce and place advertisements and other promotions
c.Fill the distribution pipeline with product
d.Critical path analysis is most useful at this stage


(2) Product Life-Cycle:

Products tend to go through five stages:

1.New product development stage:
very expensive
no sales revenue
losses

2.Market introduction stage:cost high
sales volume low
no/little competition - competitive manufacturers watch for acceptance/segment growth
losses
demand has to be created
customers have to be prompted to try the product

3.Growth stage:
costs reduced due to economies of scale
sales volume increases significantly
profitability
public awareness
competition begins to increase with a few new players in establishing market
prices to maximize market share

4.Mature stage:
costs are very low as you are well established in market & no need for publicity.
sales volume peaks
increase in competitive offerings
prices tend to drop due to the proliferation of competing products
brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered
very profitable

5.Decline or Stability stage:costs become counter-optimal
sales volume decline or stabilize
prices, profitability diminish
profit becomes more a challenge of production/distribution efficiency than increased sales

(3) Marketing Communication Strategy:

In practice, the goal of Integrated Marketing Communications is to create and sustain a single look or message in all elements of a marketing campaign. “It permits every planned and unplanned communication at every contact point where the customer or prospect may receive an impression of the company.” Although integrated marketing communication is more than just the ad campaign, the bulk of marketing dollars is spent on the creation and distribution of the advertisements. Advertisers will be called upon to create images and moments that can cross media boundaries.

The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace.

Although some marketers have added other Ps, such as personnel, typically the 4 Ps, or marketing mix refer to:
Product:

Although this typically refers to a physical product, it has been expanded to include services offered by a service organization. The specification of the product is one of the variables that a marketer has at his/her control. For example, the product can include certain colours (or not), certain scents (or not), certain features (or not). Lastly, in the broadest sense when a consumer purchases a product it also includes the post-sales relationship with the company. The post-sales relationship can include customer service and any warranty.

Price:

The price is the amount paid for a product. In some cases, especially in business-to-business marketing this can also include the total cost of ownership. Total cost of ownership may include costs such as installation and other products required to deliver a complete functional solution.

Place:

Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion:

Promotion represents all of the communications that a marketer may insert into the marketplace. This can include TV, radio, and print advertising, as well as coupons, direct mail, billboards, and online advertising. One of the less well-defined areas in promotion is the role of a human sales force. Are the messages the sales person provides to a consumer a component of the promotional mix, or is it part of the product? On the other hand, consumers may rather purchase the product only when sold through the support of a known salesperson. In this case, the service, perceived or real can be defined as a feature of the product.

Conclusion:

By adopting the above mentioned strategies, the company can launch its new brand successfully.
 
You must log in or register to reply here.
Back
Top