ISMS ANSWER SHEETS PROVIDED. MBA EMBA BMS DMS ANSWERS PROVIDED. DR. PRASANTH MBA PH.D. MOBILE / WHATSAPP: +91
9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Master Program in Business
Administration (MBA)
Note :- Solve any 4 Case
Study
All Case Carry equal Marks.
CASE I
Sunder Singh
Sunder Singh had studied only up to high school. He was
32-years of age, lived alone in a rented room, and worked eight-hour shift at
one petrol pump, then went to the other one for another eight-hour shift. He
had a girl friend and was planning to marry.
One day when he returned from work, he
got a note from his girl friend that she was getting married to someone else
and he need not bother her. This was a terrible shock to Sunder Singh and he
fell apart. He stopped going to work, spent sleepless nights, and was very
depressed. After a month, he was running Iowan his savings and approached his
earlier employers to get back his job, but they would not give him a second
chance. He had to quit his rented room, and sold few things that he had. He
would do some odd jobs at the railway station or the bus terminal.
One day, nearly two years ago, he was
very hungry and did not have any money and saw a young man selling newspapers.
He asked him what he was selling and he told him about Guzara (an independent,
non-profit, independent newspaper sold by the homeless, and economically
disadvantaged men and women of this metro city). Sunder Singh approached the
office and started selling the newspaper. He did not make a lot of money, but
was good at saving it. He started saving money for a warm jacket for next
winter.
He was reasonably happy; he had money
to buy food, and no longer homeless and shared a room with two others. One day,
with his savings he bought a pair of second-hand Nike shoes from flea market.
Sunder Singh is not unique among
low-income consumers, especially in large cities, in wanting and buying Nike
shoes. Some experts believe that low-income consumers too want the same
products and service that other consumers want.
The working poor are forced to spend a
disproportionate percent of their income on food, housing, utilities, and
healthcare. They solely rely on public transportation, spend very little on
entertainment of any kind, and have no security of any kind. Their fight is
mainly day-to-day survival.
QUESTIONS
1.
What does the purchase of a product like Nike mean to
Sunder Singh?
2.
What does the story say about our society and the
impact of marketing on consumer behavior?
CASE II
Key to Buyers' Minds
Consumer buying research has turned a new leaf in
India. The era of demographics seems to be on the backbench. Now, Marketing
Research people are less likely to first ask you about your age, income, and
education etc. Instead, there is a distinct shift towards inquiries about
attitudes, interests, lifestyles, and behaviour - in short towards a study of
consumers' minds called psychographics.
Pathfinders, the marketing research
wing of Lintas, occasionally came out with its highly respected "Study on
Nation's Attitudes and Psychographics (P:SNAP). The first in this series was
released in 1987 with an objective to develop a database of lifestyles and psychographics
information on the modem Indian women. The second was in 1993, and the third in
1998. Pathfinders choose woman for the study because of the belief that more
often than not, in urban areas, it is the woman who makes buying decision.
The Pathfinders' study involves
interviewing over 10,000 women over the entire country and segmenting them in
clusters according to their beliefs, attitudes, lifestyles, and lastly their
demographics profile. The idea is to identify groups of consumers with similar
lifestyles who are likely to behave towards products or services.
For advertisers and advertising
agencies, this profile helps enormously. For example, an advertiser may want to
give a westernised touch to a commercial. The profile of the target customer,
as revealed by this study, tells the advertising people the perimeter within
which she/he must stay, otherwise the ad may become an exaggerated version of
westernised India.
For the purpose of this study,
Pathfinders divided the Indian women in 8 distinct cluster of varying values
and lifestyles. Figures from two studies are available publicly and are given
below:
Cluster
|
1987 (%)
|
1993 (%)
|
Troubled homebody
|
15.9
|
18.3
|
Tight-fisted traditionalist
|
14.8
|
10.0
|
Contended conservative
|
7.0
|
9.3
|
Archetypal provider
|
13.0
|
8.8
|
Anxious rebel
|
14.1
|
15.8
|
Contemporary housewife
|
19.2
|
22.1
|
Gregarious hedonist
|
8.7
|
6.6
|
Affluent sophisticate
|
7.3
|
9.1
|
The studies seek to track the macro
level changes and movements within these 8 clusters in a period of time.
We note from the table that in 1987,
8.7% of the women could be classified as "gregarious hedonist" -
those who consider their own pleasure to be supreme in life. 'In 1993, this
figure fell to 6.6%. The "troubled homebody" segment - those with
large families and low-income, increased from 15.9% in 1987 to 18.3% in 1993.
Information, such as this, is
obviously useful to assess the collective mood. That's why Pathfinders have an
impressive list of clients fort heir P:SNAP, which includes Hindustan Lever,
Cadbury, Johnson and Johnson, and Gillette.
SOME PSYCHOGRAPHICS PROFILES OF INDIAN WOMEN
Rama Devi, the Contended Conservative
The lady lives a 'good' life - she is a devoted wife, a
dotting mother of two school-going sons, and a God fearing housewife. She has
been living her life by the traditional values she cherishes - getting up at
the crack of dawn, getting the house cleaned up, having the breakfast of 'Aloo
Parathas' ready in time before the children's school-bus honks its horn, laying
down the dress her 'government servant' husband will put on after his bath, and
doing her daily one-hour Puja. She fasts every Monday for the welfare of her
family, looks at the 'freely mixing' and 'sexually liberal' youngsters with
deep disdain and cannot understand the modem young woman' s 19reed' for money,
jewellery, and jobs.
Her one abiding interest outside the
household is the Ganesh Mandir that she has visited every Wednesday, ever since
she got married. She lacks higher education and hence has little appreciation
for the arts, the literature, and the sciences. Her ample spare time is spent
watching the TV, which is her prime source of entertainment and information.
Shobha, the Troubled Homebody
Shobha married young to the first person she fell in
love with, Prakash. Four children came quickly before she was quite ready to
raise a family. Now, she is unhappy. She
is having trouble in making ends meet on her husband's
salary who is employed as clerk in a private business and is often required to
work up to late hours. She is frustrated, as her desire for an idyllic life has
turned sour. She could not get education beyond high school and hence there are
hardly any job opportunities for her. Her husband also keeps on complaining of
the long hours of backbreaking work he has to put in. He consumes country-made
liquor routinely.
Shobha finds escape in Black and White
TV soap operas and films that transport her into the world of her dreams. She
watches TV almost all through the day and her children roam around in the
locality streets and cannot expect any help from their' ever-grumbling' mother.
Purchases are mostly limited to 'essentials' and any discretionary purchases
are postponed till it becomes possible.
Neeru, the Archetypal Provider
Neeru epitomises simplicity. Her life is untangled. It
runs on a set timetable with almost clockwork precision. She works as a primary
school teacher in a rural government school about 50 kilometers from her
district town residence. She is married to a social worker in an NGO whose
income is erratic. Her three children, two teenaged sons and l0-year old
daughter are getting school education.
The day begins with the lady getting
up before anybody else and finishing the household chores as fast as she can.
There is no room for delay as the State government 'Express' bus, on which she
ravels to her school will be at the bus stop across the road precisely at 8.00
A.M. If she misses that, the next ordinary bus comes at 11.15 A.M, quite
useless as it will reach her school only at 1.00 P.M. The school closes at 2.00
P.M. There are private Jeeps running sporadically, but the fare is high and
Neeru does not believe in wasting hard earned money. Besides, she travels on
husband's 'free pass'. Neeru prides herself on her monthly savings ofRs.1000
for the last many years. The money will go toward the wedding of her daughter.
Vandana, the tight-fisted traditionalist
For Vandana, saving money is 'in-born' discipline. When
she was young and unmarried, she remembers her mother was extremely
tight-fisted and ran the household in under Rs.800 per month. It was the
necessity of those times as her father retired at a princely salary of Rs.1800
per month. All through her childhood, she saw deprivation and hardship. She
would not join the annual class picnic in her school days as it meant'
avoidable expenditure'.
Now she is married and mother of two
school going children. The husband works in a bank as a clerk. He has taken all
the loans that he could from the bank and invested the money in real estate. As
a result of monthly deductions toward repayment of loans, his take home salary
is now very little. But Vandana can manage. The school dresses are sewn by her
at home, the stationary required comes from a wholesale market, and the books
are second-hand from 'friends', cultivated for the purpose. On birthdays,
Vandana prepares a sweet dish at home and they spend on a film. There is a cow
and calf at home, being kept as a source of revenue and milk. She sells half
the milk to a neighbour and the family consumes the rest. Life in general is
hard and frugal. There is a colour TV at home, but they disconnected the cable
connection ever since the rates went up. Now they watch Doordarshan only.
Aditi, the Anxious Rebel
Daughter of a Freedom Fighter, Aditi has always fought
her values and principles.
People still remember when she walked out of the exam
half in a huff as a mark of protest against mass cheating' sanctioned' by the
centre superintendent in a tough paper. While every body else passed with high
marks, Aditi failed.
Even though she repeated the paper,
Aditi never learned to swim along the flow. She always swam against the
current. She joined the Communist Party in her college and gave rousing
speeches against the teachers and authorities. This resulted in her getting
very poor marks and left her jobless.
Later, Aditi joined an NGO and now
works on social issues. She says she is a creature of the mind, not
materialism. Her favourite dress is a long flowing Kurta, and slacks. She wears
loosened hair and chappals. She reads voraciously. Financially, she is
independent and lives with her parents. Her disdain for the institution of
marriage and contempt for the modern Indian male keep her single and
unattached. She will continue-to be so as she prefers this status, but may
adopt a baby later in life.
Reema, the Gregarious Hedonist
Just 19, and Reema is already divorced. Her father is a
wealthy businessman. During Reema's childhood, her father was mostly away in
Dubai and Africa, trying to amass a fortune. That he did but he lost on his
chance to be a good father. Both his children started feeling like' orphans'
after their mother got involved with another man.
Reema was ever longing for her family
when alone came Harsh, her private high school tuition teacher. Harsh was all
of 22 and very caring. He was tall, handsome, and very popular in school and
many girls had a crush on him. Reema was sixteen then and a great fan of Harsh.
For her, Harsh was a prize catch as he combined the loving qualities of a
father with a mix of being a good teacher. She was soon dazzled and surrendered
in a physical relationship.
Marriage followed. She never
understood how Harsh changed overnight from a caring father figure to a
demanding husband. And she could never cope with the six hours she had to spend
in the kitchen everyday. Why should she do the cooking, she asked Harsh, as it
was something that the 'Ayas' did? The reality of a humdrum middle-class
existence hit her hard and she soon walked out of 'the hell'.
Her father understood her need to recover
and made her allowance rather generous. He bought her a Red Sports Car and got
her an admission in a private college.
College is entertainment for her. She
attends college only on days when there is some function like a cultural
evening or the sports meet. Now, Reema spends on alcohol, dresses, parties, and
holidays. She consumes a mood elevating drug every evening and keeps sending
SMS messages on her mobile to her friends all through the night. For her, life
means 'buying pleasure endlessly'.
Shruti, the Contemporary Housewife
Shruti is an urbane woman. She is well educated and
genteel. She is an officer in a national bank, and active in her club affairs
and community activities. Socialising is an important part of her life. She is
a doer, interested in watching cricket, politics, and current affairs. Her life
is hectic as she has a lot to do for home and office everyday. Still she often
enjoys viewing movies on TV every week.
Shruti shops for Sarees, jewellery,
and cosmetics for herself on a regular basis. However, family needs come before
her own needs. Her home is a double income household and she has one kid. All
the modern gadgets are present and the standard of living is upper
middle-class.
Momeeta, the Affluent Sophisticate
Momeeta was born Mamta, but elevated herself to Momeeta
after marriage to a business tycoon. Momeeta is an elegant woman with style.
She lives in Mumbai because that is where she wants to be. She likes the
economic and social aspects of big city living and takes advantage of her'
contacts'. She has built up friendship and cultivated the city bigwigs by
inviting them to the numerous parties she throws in her luxurious penthouse.
Momeeta is a self-confident, on-the-go
woman, and not a homebody. She is fashion conscious and clothes herself in the
latest designer dresses. Even at 40, she can carry off a mini with aplomb. She
is financial very secure and hence does not shop with care. She shops for
quality, exclusivity, and the brand name, not the price. She frequently travels
abroad, buys expensive gifts for friends, and has an international
understanding on what is "chic" at the moment.
Three psychographics profiles of Indian women and their
food shopping habits:
Type
I
|
Type
II
|
Type
III
|
Money
conscious
|
Careful
shopper
|
Gourmet/satisfaction
|
Food shopping is done on necessity and is postponed as long as
possible.
|
Makes out shopping lists and makes
weekly/ monthly purchases.
|
General liking for food shopping
and food related activities.
|
Minimum amount of money spent.
This is enabled through comparative evaluation of many shops, even if it
takes more time.
|
Can purchase larger quantities if
there is an incentive like lower prices or a gift scheme. Food budget is
flexible.
|
Collects and files food recipes.
Experiments with new food products and methods of cooking. Likes to exhibit
her culinary skills to her friends and family.
|
Operates within the food budget.
Does not buy larger quantities to save money.
|
Checks labelling for price,
nutrition and expiry date information
|
Spends a lot of time in kitchen as
preparing food is an enjoyable activity.
|
Price and immediate outflow of
cash is the dominant purchase concern.
|
Goes for tried and trusted brands
even if they cost a little more. This is an important purchase concern.
|
Food items are bought either based
on the past satisfaction from them or for their novelty value. Unknown food
items are purchased if they excite the senses. This is the dominant purchase
concern.
|
Who fits in where?
Shobha, Neeru, and Vandana,
|
Shruti, Aditi, and
Rama Devi
|
Momeeta (she is a food lover).
|
(Prof Deepak Khanna,
colleague, has developed these profiles based on his perceptions of certain
personality types).
QUESTIONS
1.
Explain how the above-mentioned information is likely
to benefit a marketer?
2.
Which of the above mentioned types are likely to
respond to sales promotion? Explain.
3.
A manufacturer of personal care products in the premium
segment starts frequent sales promotions. What is likely to be the impact on
the above-mentioned types?
Case III
Star Airways
Star Airways offered passengers
air services within the country and served a territory of 18, 000 sq. miles
with an expanding population of over 70 lakh of people who are potential users
of the airline services. The geographic diversity and scattered business and
commercial cities have led to steady increase in the number of people who use
air travel. The clientele includes business people, as well as individuals on
non-business trips, holidays, and leisure trips etc. As a result, the passenger
traffic had been increasing steadily since the firm started operations in 1983.
In the last three years, however, the growth has not been consistent with the
growth pattern showed by the company in the last fifteen years - as against a
healthy growth of 13 per cent, the sales have marginally improved, registering
a growth of 6 per cent.
The company's
early success was due to the pioneering concepts used by it in the airline
industry, which was dominated by large private and government operators with
little market orientation. The launch of the company's services coincided with
a boom in the aviation sector and reduced government dominance, which opened up
the skies for private operators. Besides this, the company offered a host of
innovations in the customer service functions such as smaller and newer planes,
convenient schedules, free gifts, comfortable seats, exclusive terminals,
express baggage-check, and airport-to hotel transit for its first and business
class clients. In turn the fares charged by the company were premium in the
category and almost 15 per cent higher than the industry average. The company
president in the following words justified this move: ''We are selling entirely
on the basis of providing quality experience to our clients. Our services,
ambience, and commitment to safety and time-bound schedule, all surpass the
standards of the industry."
During the first
ten years of operations the company faced no direct competition. The only
problems faced by the marketing staff were (a) the price, (2) the need to
convince clients that air service was more efficient than other alternatives,
(c) identifying the customers, and more importantly (d) developing the image of
a dependable service. The consumers, who till now were forced to put up
indifferent service offered by large government operators, did not offer much
resistance and were agreeable to try out new company. Once customers were
convinced, retaining them was very easy. Hence the company enjoyed immense
loyalty from its clients with
almost 40 per cent of them being regular users. Sales were handled by the sales
division as well as by some independent sales representatives.
In early 1990s
the company faced direct competition for the first time with a new company
coming up with smaller planes and all other advantages which were previously
associated with Star Airways. The growing business had made the market very
lucrative and hence in the next three years, four major competitors were also
vying for the market share. The company slowly lost to these competitors and
could manage to retain only 30 per cent of market share by the end of 1994. All
the competitors were engaged in aggressive promotion and soon started a 'price
war' in order to outdo one another. For the next six months, each of them
offered big discounts and gifts (such as TV / audio systems) with the return
ticket on different routes. The most profitable and commercia1ly viable routes
were the major targets of these price related competitions. The consumer was
the ultimate beneficiary and in short time, the companies started facing losses
due to this price-cutting.
Star Airways had so far remained out of this
‘price-war’ and lost its market share on the competitive routes very
rapidly. It was able to retain the
clients on other routes, which were not a part of this intense
competition. Unhappy an anxious about
this state of affairs, the company vice president, marketing, developed a
marketing plan with several components.
The initial part of the plan consisted of a market research done on a
cross-section of existing clients as well as the clients of competitors and the
following observations were made :
·
Star Airways was considered a
quality-oriented company but many felt that it was getting stodgy.
·
The satisfaction with crew and
schedules had declined over the last 5 years amongst regular customers.
·
The clients felt that the airline
was losing its edge over customer service because it was nonflexible.
·
The prices offered by competitors
are less and they provide only a fraction of services offered by Star Airways.
This was the main reason of clients switching over to competitors. As many as
70 per cent respondents considered the costs as the most important factor in
deciding on the airline.
·
Some deciding factors and their
relative importance to clients were found to be following this pattern.
·
Feature offered by airline
|
Importance of feature as the deciding factor
|
Rank of feature in decision making influence
|
Price
|
67%
|
1
|
Ambience and
food
|
9%
|
3
|
Punctuality
|
14%
|
2
|
Services &
convenience
|
7%
|
4
|
Free gifts etc.
|
3%
|
5
|
The second phase
of the plan included a massive advertising and promotion plan. The VP
marketing, Anil Saxena, felt that the company needed to advertise it's
dedication to quality and rebuild an image of being a customer-oriented
airline. He began discussions with the advertising agency to launch a campaign
in the near future.
After a month,
the agency came out with the following recommendations:
·
The campaign is to be completed in
four months time and the budget will be 351akh.
·
The company would reach 85% of
target audience, once in a month by direct mail.
·
Four times a month a TV commercial
will be aired on a business show time. The audience TRP is consistent and
highest in this category of shows.
·
Star Airways would build the
campaign theme around 'quality and customer service initiatives' .
·
The direct mail letter would be
sent to a database of 85,000 clients in four months. The letter will contain
information on the airline and again stress on the same theme of' quality and
customer service'.
QUESTIONS
1.
What is likely to be the decision
process in case of choosing an airline?
2.
Would this plan suggested by the
vice president help in convincing the customers to use Star Airways? Give your
reasons.
Case IV
Mouse-Rid
One hot May morning, Shobha, general manager of
Innotrap India Ltd., entered her office in Delhi. She paused for a moment to
contemplate the quote, which she had framed and hung on a wall facing her
table.
"If a man can make a better
mousetrap than his neighbour, the world will make a beaten path to his
door." She vaguely recalled that probably it was Ralph Waldo Emerson who
said this. Perhaps, she wondered, Emerson knew something that she didn't. She
had the better mousetrap - Mouse-Rid - but the world didn't seem all that
excited about it.
Shobha had just returned from a Trade
Fair in Kolkata. Standing in the trade show display booth for long hours and
answering the same questions hundreds of times had been tiring. Yet, this show
had excited her. The Trade Fair officials held a contest to select the best new
product introduced at the show. Of the more than 150 new products, her
mousetrap had won first place. Two women's magazines had written small articles
about this innovative mousetrap, however, the expected demand for the trap had
not materialised. Shobha hoped that this award might stimulate increased
interest and sales.
A group of investors who had obtained
rights to market this innovative mousetrap in India had formed Innotrap India
in January 2001. In return for marketing rights, the group agreed to pay the
inventor and patent holder, a retired engineer, a royalty fee for each trap
sold. The group then appointed Shobha as the general manager to develop and
manage Innotrap India Ltd.
The Mouse-Rid, a simple yet clever
device, is manufactured by a
plastics firm under contract with Innotrap India Ltd. It consists of a square,
plastic tube measuring about 6 inches long and one and one-half inches- square.
The tube bends in the middle at a 30-degree angle, so that when the front part
of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which
the user places bait (piece of bread, or some other titbit). A hinged door is attached to the front endofthe
tube. When the trap is "open",
this door rests on two narrow "stills" attached to the two bottom
corners of the door.
The trap works with simple efficiency.
A mouse, smelling the bait enters the tube through the open end. As it moves up
the angled bottom toward the bait, its weight makes the elevated end of the
trap drop downward. This elevates the open end, allowing the hinged door to
swing closed, trapping the mouse. Small teeth on the ends of stills catch in a
groove on the bottom of the trap, locking the door closed. The mouse can be
disposed of live, or it can be left alone for a few hours to suffocate in the
trap.
Shobha felt the trap had many
advantages for the consumer when compared with traditional spring-loaded traps
or poisons. Consumers can use it safely and easily with no risk for catching
their fingers while loading. It poses no injury or poisoning threat to children
or pets.
Shobha's personal and informal
inquiries with acquaintances and friends suggested that women are the best
target market for the Mouse-Rid. Most women stay at home and take care of
household chores and their children. Thus, they want a means of dealing with
the mouse problem that avoids any kind of risks. To reach this market,
Shobha decided to distribute Mouse-Rid
through grocery stores, and kitchenware stores. She personally contacted a
supermarket and some departmental stores to persuade them to carry the product,
but they refused saying that they did not sell such contraptions. She avoided
any wholesalers and other middlemen.
The traps were packaged in a simple
cardboard, with a suggested retail price ofRs.150 for a piece. Although this
price made Mouse-Rid about five 1;0 six times more expensive than standard
traps, those who bought it showed little price resistance.
To promote the product, Shobha had
budgeted approximately Rs. 300,000 toward advertising in different women's
magazines, such as Grah Shobha, and Good Housekeeping. Shobha was the company's
only salesperson, but planed to employ sales people soon.
Shobha had forecasted Mouse-Rid's
first year sales at 2 million units. Through Aril, however, the company had
sold only few thousand units. She wondered if most new products got to such
slow start, or if she was doing something wrong.
Shobha knew that the investor group
believed that Innotrap India Ltd. had a "once-in-a lifetime chance"
with its innovative mousetrap. She sensed the group's impatience. To keep the
investors happy, the company needed to sell enough traps to cover costs and
make a profit.
QUESTIONS
1.
Has Shobha identified the best target market for
Mouse-Rid? Why or why not?
2.
Does Shobha have enough needed data on consumer
behaviour? What type of consumer research should Shobha conduct?
3.
What type of advertising can influence consumers for
this type of product?
Case V
Golden Glow Soap
Anil Mahajan absent -mindedly ran his finger over the
cake of soap before him. He traced the name 'Golden Glow' embossed on the soap
as he inhaled its unmistakable sesame fragrance. It was a small soap, almost
like a bar of gold. There were no frills, no coloured packaging, and no fancy
shape. Just a golden glow and the fragrance of sesame and Lucida font that
quietly stated' Golden Glow'.
Mahajan smiled wanly and clasped the
soap in his hands, as if protecting it from an unseen predator. He was
wondering with quiet concern if the 30-year-old brand would last long. Sensi
India, where Mahajan was marketing manager, was taking a long, hard look at the
soap, as it was proving to be a strain on resources.
There were varying stories about how
Golden Glow was launched. Some said the brand was a 'gift' from the departing
English parent company. Others claimed that it was created for the then
chairman's British wife, as the Indian climate did not agree with her skin.
They also claimed that the lady also coined the copy "The honest soap that
loves your skin" was also coined by the lady. The line had stuck through
three decades. Only the visuals had changed, with newer models replacing the older
ones.
Zeni was basically a
speciality products company producing household hygiene, fabricare, and dental
care products. Golden Glow was the only soap in its product mix, produced and
marketed by Sensi. Its reliable quality and value delivery had earned it a lot
of respect in the market. Golden Glow equity was such that Sensi was known as
the Golden Glow Company. Indeed, the brand name Golden Glow denoted purity,
reliability, and gentle skincare.
In 1994, Sensi UK increased its stake
in the Indian subsidiary to 51%. Within months, all of Sensi's products were
given a facelift, thanks to the inflow of foreign capital. New packaging, new
fragrances, new formulations and more variants were introduced.
Only Golden Glow was left untouched.
For, although it had a growing skincare business following some strategic
acquisitions in Europe in the early eighties, Sensi UK was not a soap company.
The UK marketing team ran an audit of every brand and product in the company's
portfolio. But when it came to Golden Glow, it faltered. "We don't know
this one," officials at the parent company said.
"We don't want this one to be
touched," Mahajan had said protectively, a sentiment tliat was endorsed by
the managing director, Rajan Sharma. "Golden Glow is too sacred, we will
leave it as it is," he said.
But the UK marketing team was
confounded. What was a lone soap doing in the midst of toilet cleaners and
fabric protectors; they wondered, however they somehow agreed that their
proposed revamp strategy would only look at up-gradation, not tinkering with
what wasn't broken.
Indeed, for 30 long years no one had
tampered with the Golden Glow brand. And Mahajan felt there was no reason to
start now. Golden Glow, in his view, was a self-sustaining brand. That was a
bit of an understatement because advertising for the brand was moderate and
Sensi India had never used any promotional gimmick for it.
Now, after four years of nurturing the
other categories, Sensi UK had decided to launch its Vio range of skincare
products in India. But Golden Glow's presence and profile was a major roadblock
to Vio's success. "It will create dissonance, confuse our skincare equity
and deter the articulation of Vio's credo. It will stand out as a genetic
flaw," argued the UK marketing head. "You need to do a rethink on
Golden Glow."
Mahajan protested. "Why? It has
such a strong equity and loyal following. So much has been invested in it all
these years. Why give up all that?"
Rajan, however, had another idea.
"Let us then extend the Golden Glow brand." He said It was the
simplest solution. Companies were now investing heavily in creating new
equities for their brands. But in Golden Glow's case, Sensi was already sitting
on a brand with a terrific equity. He felt that extending this equity to other
categories, such as skincare products would be successful.
But Golden Glow needed a new
positioning before it could be extended. Till a few years ago, it had been in
premium category, priced at Rs.15. Then new brands with specific positioning
and higher price tags entered the market. This created a level above Rs.15
soaps and pushed Golden Glow down to the mid-priced range. So Golden Glow's
price was not commensurate with its premium position and image.
Over the years, Golden Glow had become
so sacred that Sensi India had been too scared to do anything to it. As a
result, the soap was left with niche category of loyal users. This category
neither shrank or increased, just kept getting older and older, and with it the
brand also kept growing older. For example, when Mahajan's wife had her first
baby at 25, her mother had recommended Golden Glow for her dry skin and also
for baby's tender skin because it contained sesame oil. That was in 1979.
Today, Mahajan's daughter had turned 21 and was being wooed by Dove, Camay,
even Santoor, and Lifebuoy Gold, with their aggressive advertising. Golden Glow
had begun to lose its image of being contemporary as newer brands came in with
newer values.
Today, at 46, Mahajan's wife still
used Golden Glow, but when she recommended Golden Glow to her daughter, she
said, "But Golden Glow is a soap for mothers, for older people."
That was a major problem. The Golden
Glow brand had aged, and Sensi India hadn't even been aware of it. While its
equity had grown with its users, its personality had aged considerably in the
last 30 years. "I don't think you can keep the personality young, unless
you keep renewing the brand. The objective now is to widen your equity so that
your image becomes young," continued Rajan. "For instance, if today you
were to personify a Golden Glow user now, it would be a woman of 45 years using
the same brand for many years, who is aver-se to experimenting, very skincare
conscious, very trusting, and very one-dimensional. As you can see, this is not
a very competitive personality. These are the strengths of our Golden Glow, but
these are also its weaknesses," he analysed.
The context had changed. Today, youth
demanded brands that stood for freedom and fearlessness. They demanded bold
brands that dared to cure, not just p;eserve. "Preservation is for old
people. Those are the attributes being presented in evolved markets," said
Rajan. To make Golden Glow contemporary, the attributes had to be re-framed, he
felt. "You can't make a young brand trusting caring, loving, without
adding other attributes to it. Today, youth stands for freedom, for laughter,
for frankness, for forthrightness. That's what Close Up, Lifebuoy Gold, Vatika,
and other brands propagate. So, either come clean and say it is for older skin
which needs trust and kindness, or reposition the brand," said Rajan.
Repositioning was also necessary to
address another anomaly in Golden Glow's image: its perceived premium. Sensi
India had been unable to do anything about Golden Glow slipping into the mid-price
range following the entry of more expensive brands. Now, as Rajan mulled over
the brand extension plan, Mahajan felt that Golden Glow's premium positioning
was its core equity and that had to be maintained.
"If you are premium priced in the
consumer's mind, your extensions are automatically perceived as premium. So, if
you don't present the other products as premium, the consumer will not see them
as extensions of the brand," he said. "For example, if you are to
launch a shampoo which is priced lower than Sunsilk, but higher than Nyle and
Ayur, then whatever the rationale, the consumer will not accept your product.
"It is not the Golden Glow I know," will be the feeling," he
said.
Mahajan felt that since premium
positioning was one of Golden Glow's equity values, it would be very difficult
to convince consumers that the brand was being extended without hanging on to
this particular value. "Will they buy your rationale that the very same
values and equity would now be available at a low price? To be in the premium
segment now, you have to price it at Rs 35 or 40, almost on a par with
Dove," he said. "With Dove retailing at Rs 45, Golden Glow will be
perceived as a cheaper option."
"We can't simply raise the
price," said Rajan. "What are we offering for that increase? You can
't add value because you don't want to tamper with the brand. The consumers
will then ask, "Golden Glow used to be so cheap, what has happened now?
The user will forget that 15 years ago, Rsl0 was expensive, because all her comparisons
would be in today' s context," said Rajan.
"So what's the option?"
asked Mahajan. "You don't have to be expensive to be premium," said
Rajan. Golden Glow already has the image of a premium brand, thanks to its
time-tested core values of purity, credibility, and reliability. What we can do
is reinforce the premium through communication and positioning. In fact) we
should have tinkered with Golden Glow long ago. That is what HLL did with Lux.
It also launched a bridge brand, Lux International, in the premium
category," said Rajan.
"How could we have done anything
to the brand?" asked Mahajan. "The product had such a strong
following. It stood for gold, for sesame oil, for its subtle earthy perfume. We
changed the packaging periodically, but that's all we could do. Remember the
time we brought out a transparent green Golden Glow with the fragrance of lime?
It bombed in the market."
Rajan was not in favour of the premium
positioning. It appeared very short sighted to him, given the bigger plan to
extend the brand. "Where are the volumes in the premium segment? He asked.
"For some reason, every manufacturer feels that skincare can be an
indulgence of only the moneyed class. As a result, there is a crowd in the
premium end of the market. Do we want to be yet another player in the
segment?"
Fifteen years ago, Golden Glow was
perceived as a premium product. But today, globa1brands like Revlon, Coty, and
Oriflame were delivering specific premium platforms. Golden Glow did not have a
global equity. 'Let us revisit the brand and examine what it stood for 15 years
ago and examine the relevance of those attributes in today's context,"
suggested Rajan. "Golden Glow stood for care, consciousness, love, quality
and all that. But today, are these enough to justify a premium position?"
he asked Mahajan. "These attributes are viable in the mid-priced
segment." He said.
"The mid-priced brand is the
proverbial washer-man's dog," said Mahajan. "You don't know whether
you are at the bottom end of the premium range or at the top-end of the
low-priced range. You end up creating an image of being on the opportunity
fence. It is a mere pricing ploy, with no strategic value."
QUESTIONS
1. Discuss the nature
of problem(s) in this case?
2. Suggest the kind of
consumer research needed?
3.
How should Golden Glow be positioned/ repositioned to
bring about the desired change among consumers? Give your reasons.
CASE VI
Impact of Retail Promotions on
Consumers
Shoppers' Delight, a large retail
store, had above-average quality and competitive prices. It advertised its
retail promotions in local newspapers. Its TV advertising was mainly aimed at
building store image and did not address retail promotions. The management knew
it well that they had to advertise their retail promotions more, but they did
not feel comfortable with the effectiveness of present efforts and wanted to
better understand the impact of their present promotions.
To better
understand the effectiveness of present efforts, a study of advertising
exposure, interpretation, and purchases was undertaken. Researchers conducted
50 in-depth interviews with customers of the store's target market to determine
the appropriate product mix, price, ad copy and media for the test. In
addition, the store's image and that of its two competitors were measured.
Based on the
research findings, different product lines that would appeal to the target
customers were selected. The retail promotion was run for a full week.
Full-page advertisements were released each day in the two local Hindi newspapers,
and also in one English newspaper that devotes six pages to the coverage of the
state.
Each evening, a
sample of 100 target market customers were interviewed by telephone as follows:
1.
Target customers were asked if
they had read the newspaper that day. This was done to determine their exposure
to advertisement.
2.
After a general description of the
product lines, the respondents were asked to recall any related retail
advertisements they had seen or read.
3, If the respondents were able
to recall, they were asked to describe the ad, the promoted products, sale
prices, and the name of the sponsoring store.
4.
If the respondents were accurate
in their ad interpretation, they were asked to express their intentions to
purchase.
5.
Respondents were also asked for
suggestions to be incorporated in future promotions targeted at this consumer
segment.
Immediately after
the close of promotion, 500 target market customers were surveyed to determine
what percentage of the target market actually purchased the promoted products.
It also determined which sources of information influenced them in their
decision to purchase and the amount of their purchase.
Results of the
study showed that ad exposure was 75 per cent and ad awareness level was 68 per
cent and was considered as high. Only 43 percent respondents exposed to and
aware of the ad copy could accurately recall important details, such as the
name of the store promoting the retail sale. Just 43 per cent correct
interpretation was considered as low. Of those who could accurately interpret
the ad copy, 32 per cent said they
intended to respond by purchasing the advertised· products ' and 68per cent sad
they had no intention to buy. This yields an overall intention to buy of 7 per
cent. The largest area of lost opportunity was due to those who did not
accurately interpret the ad copy.
The
post-promotion survey indicated that only 4.2 per cent of the target market
customers made purchases of the promoted products during the promotion period.
In terms of how the buyers learned of the promotion, 46 per cent mentioned
newspaper A (Hindi), 27 per cent newspaper B (Hindi), 8 per cent newspaper
(English), and 15 per cent learned about sale through word-of mouth
communication.
The retail
promotion was judged as successful in many ways, besides yielding sales worth
Rs 900,000.
However, management was concerned about not achieving a higher level of ad
comprehension, missing a significant sales opportunity: It was believed that a
better ad would have at least 75 per cent correct comprehension among those
aware of the ad. This in turn would almost double sales without any additional
cost.
QUESTIONS
1.
Why would some consumers have
high-involvement levels in learning about this sales promotion?
2 Is a level of 75 per cent comprehension
realistic among those who become aware of an ad? Why or why not?
3. Do you think such promotions are likely
to influence the quality image of the retail store? Explain.
No comments:
Post a Comment