ISMS EXAM ANSWER SHEETS PROVIDED. ISBM MBA
EMBA BMS DMS ANSWERS PROVIDED. DR.
PRASANTH MBA PH.D. DME 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