Case study -1

Ajanta biscuits, Bangalore, are in the field for a little over 6 years. During this
time, they have consistently increased their sales. This was possible mainly due
to good quality of biscuits, a good distribution networ and promotion policy.
The company has shown innovative ability by bringing out variety of biscuits to
cater to various tastes in the consumer maret.
A study made on the biscuit industry by the !ndian Biscuit "anufacturers
Association highlighted that out the total consumption of biscuits# almost $%&
are consumed by children below age of %%. The management of Ajanta biscuits
decided to develop special biscuits to cater to his maret segment. After
woring out different possibilities, it was finally decided that biscuits made in
different animal shapes would be introduced which would certainly appeal to
the younger generation. As such, samples were prepared. The company carried
out a small e'ercise in test mareting the biscuits in their home town. A sample
si(e of $)) was selected for this purpose. "ajority of the sample consumers
showed their interest and informed that the children have lied the products.
*ith a lot of publicity, the company introduced this new range of biscuits in
four metropolitan towns of "umbai, +hennai, ,olata and -ew Delhi besides
Bangalore. The results for first 6 months were encouraging. .owever, from the
seventh month, the sale started declining. !n the twelfth month, the total sales of
this type of biscuits were reported only at $/& of the pea reached. The quality
was maintained. The price right from the beginning was %)& higher than the
other types for same weight.
Questions:
1. What caused the downward trend of sales for animal-shaped
biscuits?
2. What remedial actions would you suggest to maintain the sales at a
particular level?
Case study 2
0dutech 1td., was established in $))$ at Bangalore with an aim of
producing and mareting educational +D2s. The company targeted
mainly high school and higher secondary school students. They focussed
Tamilnadu "aret 3both state and +B40 syllabus5 and made moderate
success. They offered +D2s covering all subjects with lot of animations.
-ow to improve sales and e'pand the maret it has entered with technical
collaboration with 6lobetech, 7, to produce quality +D2s.
The company has decided to create more awareness about its product by
advertising, as vice president of a reputed ad agency suggests suitable
answer for the following issues.
Questions:
1. election of media or media mi!
2. "rovide criteria for choosing a particular media
#. $ow to measure the effectiveness of the media?
Case study #
Assume you are brand manager of "ountain state bottled water. This new
brand competes in a product category with several well nown brands.
8our mareting communication objective is to generate trial purchases
among predominantly younger and better educated consumers. 8ou have
competitors from well established brands lie Bisleri , Acquafine, etc.
Assume that your promotion is purely e'perimental and that it will be
undertaen in a small city of only /,)),))) people. Also assume that
%5 8ou cannot afford product sampling
$5 8ou will not advertise the promotion
95 8our budget for this e'perimental promotion is :s.%)),)))
;uestions<
%. *hat sales promotion strategy you recommend in these situations=
6ive reasons to support.
$. *hether you will follow push or pull oriented promotional strategy=
*hy=
9. Do you thin that promotion deals for such a brand would be
unprofitable= !f yes, or no, give reasons in support.
Case study %
4odhi > +o manufactures a new variety of cleaning solution. They will
be competing with two other companies which are presently running their
promotional campaigns. ?ne was offering a summer holiday at 4imla and
the other had attached small sponge to each of the cans.
"r.sodhi, the Director of this company called the mareting manager for
a discussion to now whether these promotional campaigns of others are
effective. These days, a lot of products seem to be promoted in one way
or the other.
!n view of the fact that 4odhi > +o is also liely to launch its new
product shortly. "r.sodhi wanted to now whether his mareting
department have considered using a promotion to help get the thing off
the ground.
Questions:
1. &o you feel a promotional campaign is re'uired?
2. What type of promotional campaign you will recommend?
#. (nalyse the merits and demerits of the available choices and
recommend.
Case study )
Bata has become household name and almost synonymous with footwear over the
past @/ years in the country. The brand has been a pioneer, innovator and maret
leader and has one of the strongest maret penetrations amongst the branded footwear
players in the country. Bata has over eight renowned brands and some of them are
maret leaders in their own right. These brands include .ush puppies, "arie +lair for
women and Bubble .ummers for ids and power for sporting activities. Bata clearly
has the single largest footwear distribution networ in the country. This includes over
%,%)) company owned show rooms and has presence in over 9),))) multiAbrand retail
outlets in the country. Their store have about @/& fi'ed cost and $/& variable cost.
Despite this inds of distribution, Bata has not been able to substantially increase its
maret share 3of about B&5 of :s.C, 9)) crore domestic footwear maret.
?ver the last %) years, the domestic footwear maret has seen tremendous changes in
several aspects. This includes new brands, new categories and new form of
distribution and arrival of topAend as well as price players. ?n the top end with the
entry of -ie, :eebo and Adidas, the entire maret place of sportswear has changed
rapidly and it has redefined both price points and the category that Bata has been
mareting in sports largely through its power brand. These three players not only used
changed mareting through celebrity endorsements but also had high visibility
premium end stores with superior service levels compared to Bata2s declining service
hitting Bata harder in the premium end category.
"eanwhile, 1iberty has become the second largest manufacturers in the country. !t
has become the largest manufacturers in the country. !t has become the largest threat
to Bata on the mass, popular price points. !t has also been noted that close to /) & of
the total footwear maret in the country is still controlled by the unorganised sector.
Dor the $))9 financial year, Bata had a turnover of :s.@%% crore with a loss in the
region of over :s.$6 crore while the top line continues to grow, the profitability of
Bata has been severely impacted over the past few years.
;uestions<
%. *hat should the company do to pull itself out of the 4hoeAmaers of children
image=
$. *hat will increase the profitability and maret share for this brand=
9. *hat mareting steps will get it bac on the road in a very competitive maret
place=
E. *hat is the business restructuring that Bata ought to wor on now on the
distribution, pricing and promotion front=
Case study *
+ar,eting and &istribution of +ushroom
4achin and Firag are two enterprising youth. They have passed out from !!",
Bangalore. They thought instead of doing a job, they will launch fresh
vegetables in !ndian marets. .aving learnt of the future conventional foods,
they decided to venture into cultivation of mushrooms.
"ushrooms are nown to be the best alternative food for vegetarians. Dor
4achin and Firag fund raising was a serious handicap for mass production.
.owever, the firstrial batch of mushrooms that they produced was bought by
4tar .otel in Bangalore. Durther, the hotel placed orders for supply of $) gs
every day. -ow mushroom industry is run by small entrepreneurs, lie 4achin
and Firag. Another big player "Gs Ashtavinaya "ushrooms, equipped with
cold storage facility was more interested in the e'port maret.
4achin and Firag have set their sights high. They aim to sell mushrooms in a
very big way all over !ndia. "ushrooms have a great maret potential and is a
perishable food.
Questions:
A. .ow will you advise 4achin and Firag, as how to increase the
consumer awareness about this new food=
B. *hat would be your suggestions for distribution channel for
mushrooms=
Case tudy -
.ndian /efrigerator +ar,et
!ndiaHs :efrigerator maret estimated at :s. $@/) +r. is catered mainly by %)
brands. The annual capacity is estimated at around E.%/ million units is running
head of demand of %./ millions. As there is a demand and a surplus supply, all
the manufacturers are trying out for
new strategies in the maret.
Times have changed and also the buying behaviour of the customer. 0arlier it
was cash and carry system. -ow dealers play an important role in selling# now
the systems are e'change for old Ibring your old refrigerator and tae a new one
with many giftsJ.
A new company by name 0lectrolu' has entered the maret which has acquired
Allwyn, ,elvinator and Foltas brand. :esearchers have revealed that urban and
city sales are declining and hence all manufacturers are trying to concentrate on
rural marets.
0lectrolu' strategy is customisation of maret, with special attention to the
-orthern and 4outhern !ndia marets, while 6odrej the main player thins that
dealer networ in rural maret for sales and service will be beneficial and is
trying to give more emphasis on dealer networ, whereas *hirlpool has
adopted the strategy of increasing the dealer networ by 9)&.
The maret shares of the major players are as follows<
K 6odrej 9)&
K Fideocon %9&
K ,elvinator %$&
K Allwyn %)&
K Foltas /&
K *hirlpool $@&
K Daewoo %&
K 1.6 %&
K ?thers %&
Questions
%. +ould the refrigerator maret be segmented on geographical base planned by
0lectrolu'=
$. *hat would be the mareting mi' for rural maret=
9. *ould %$/ 1 and %/) 1 models be an ideal choice to launch in rural maret=
C(0 12&3 4
$ungry 5ya vs. 6egetable +andis
!n recent years, L.ungry ,ya has become one of the largest food retailers in
!ndia. By $))C, L.ungry ,ya s share of the organi(ed !ndian food maret was
%9./&, made possible by its panA!ndia presence of nearly 9/) outlets. !n fact,
L.ungry ,ya has also e'panded to neighboring countries such as Bangladesh,
4ri 1ana, -epal, Thailand, with some of their stores. Also it has few stores in
-ew Mersey, 74A and ?ntario, +anada, where a large number of the !ndian
Diaspora reside. A typical L.ungry ,ya store stocs about %),))) inds of food
products and some additional offerings in the area of itchen related utensils,
cleaning agents and accessories. !ts own private labeled products are an
important part of their offerings account for nearly 6)& of their sales. About
$/)) new products suitable for the !ndian taste and palate are being introduced
year on year.
!n contrast to this, retail behemoth, LFegetable "andis have been a traditional
phenomenon in !ndia over centuries. These LFegetable "andis provide an
opportunity to small farmers to gain direct access to local customers. This in
fact also creates a unique social milieu where housewives, domestic servants,
and small vendors create a social ecosystem with almost fanatical gathering.
The majority of vendors or stall holders at these LFegetable "andis are mostly
woring out of home or are farm food producers within /)A6) ms. of the
maret. This assures customers about the source of the product and also gives
them a feeling that they are supporting farmers in the local community to
survive. They also enjoy the e'perience of haggling and bargaining with these
small vendors. By some estimates, such LFegetable "andis across !ndia have
estimated sales of :s. /)) million 3in $))B5 as compared with L.ungry ,ya s
sales volume of :s. / billion.
.owever, with growth of !ndia s middle class and double income no ids
3D!-,45 families, it is the organi(ed retail format that is gaining more
acceptance and in large urban locales, the concept of LFegetable "andis is
fading away, slowly and steadily.
&iscuss:
Taing a cue from this case, please discuss whether !ndia has accepted
organi(ed retailing for green groceries or do you feel that sub(i mandis still rule
the roost.
C(0 12&3 7
ubway in China: 8ot so easy
!n Beijing, Mim Bryant is nown as the Dranchise ing. .is office is decorated with awards for
being subwayNs top international franchise salesperson %CC@, highest percentage increase in
unit sales $))$, and most franchises sold in Asia Mune $))9 to "arch $))E. 4ubway is the
third largest 7.4 fastAfood chain in +hina after "cDonaldNs and ,D+.
0ven though many franchisors have been lured to +hina by its %.9 billion people and its
strong economy, the +hinese maret is an especially difficult one. "any firms O including
A>*, +hilliNs 6rill > bar, Dunin Donuts and rainforest cafP Ohave closed their stores. And
while Bryant has opened %C subway stores in Beijing over the past decade, his quota for the
time period was 9B stores. Bryant says subway has charged him Q$,))) as damages for not
opening the required number of restaurants.
Mim Bryant started doing business in +hina in the %C@)s when he set up a shoe manufacturing
factory in Datong, +hinaNs northern coal capital. !n %C@E, he signed an agreement to be
subwayNs representative in +hina. Bryant would be responsible for recruiting local
entrepreneurs to become subway franchisees and act as a liaison between the franchisee and
4ubway. As compensation, Bryant would receive half of the initial Q%),))) franchising fee
and oneAthird of the B& royalty fee paid to subway. Bryant also received the rights to open
his own subway sandwich shops.
Although many subway restaurants were immediately popular among Americans, the
+hinese were confused by the choices. Bryant reduced the confusion by printing signs that
e'plained how to order. "any locals also did not believe that subwayNs tuna fish was made
from a fish since they could not see the fishNs head or tail. 7nlie other chains such as ,D+
that offers shredded carrots, fungus or bamboo shoots, subway did not tailor its menus to
appeal to the +hinese tastes. According to a subway franchisee, R4ubway should have at
least one item tailored to +hinese tastes to show that they are respecting local culture .
There are a host of other potential difficulties doing business in +hina. 4ome franchisees
refused to adapt to the franchisorNs requirements for consistency. ?ne of subwayNs earliest
franchisees decided, for e'ample, to change the restaurantNs colours and name. +onstruction
costs were severely underestimated on one job. And in a third property, the franchisee was
loced out of a location even though it had si' months remaining on its lease. Apparently, the
property owner found a new tenant who paid two years rent up front. -ow Bryant will only
sign leases with business entities, not individuals.
Bryant is currently considering whether to sell his stores and the rights to develop Beijing.
1ie many entrepreneurs, while he enjoys building business, he does not lie his role of
inspecting stores for overall cleanliness, recipe consistency and dPcor< R! donNt lie pruning
the tree. ! lie to plant the seed and watch it grow .
Questions:
%. Describe the pros and cons of a +hinese business personNs investing in a 4ubway
franchisee.
$. *hat are the pros and cons of subwayNs developing its own stores versus using franchising
as a means of selling to the +hina maret=
9. 4hould subway modify its menu to meet +hinese tastes= !f yes, how= 0'plain your answer.
E. *hy does a franchisor commonly penali(e master franchisees such as Bryant when they do
not develop sufficient franchises within a given time table=
Case study 19
The "uthu !ndustries 1td, a highly reputed engineering organi(ation, has shown
remarable growth in industrial electronic goods sector. The 6". "r :avi , in a recent
review meeting observed certain disturbing factors in their branch office +hennai. The office
has observed certain disturbing factors in their terms of sales and the employee turnover at
junior level is e'traordinary high. .e decided to visit the branch and his visit led to discovery
of some alarming facts.
Dirst of all, despite being local and enthusiastic youngsters, the employees showed high
absenteeism and left within a few months. "ajority of them were dissatisfied with the branch
head, "r Aswin, a forty year old, middle level manager woring with the company since a
decade. 0mployees felt humiliated and also were reluctant to participate in any discussions
initiated by "r :avi to now the causes of problems. "r Aswin, a traditional manager, had
been in this industry for last %/ years and saw no harm in his style. ?n the contrary, he felt
that employers are overAreacting to his style of getting wor done.
"r Aswin in an informal discussion with :avi gave him some details about the ways things
were happening in his branch. The branch is responsible for sales in the entire region and
loos after the functions such as services, dealers, accounting and collections. Sresently we
have around seven dealers and customers have grown to almost three hundred. I*ith the
growing maret, it2s my responsibility to eep a chec on strands of service and ! have
developed a system for monitoring it. The schedule of every e'ecutive is fully planned by me
on a weely basis, depending on our weely targets. The e'ecutives have to submit a daily
report showing status of wor done. ! have been giving them e'haustive instructions on how
to achieve a particular tas and try my level best to improve their customer handling sills. At
the end of the wee, the follow up plan is developed and ! try to supervise the way e'ecutives
deal with the customers for follow ups, etc. just to ensure standardi(ation, all proposals are
checed at my end to avoid any omission of facts. But these young e'ecutives are not ready
for hard wor nor do they want to learn from our e'perience.J .e stressed that e'ecutives do
not appreciate his woring and selling style, simply because they themselves aren2t
competent enough. The communication was the worst hit in this scenario and motivation
level was very low.
"r :avi after hearing both sides decided to replace "r Aswin by :am, a manager with
+oimbatore branch and ased him to tae charge for si' months initially. The employees at
+hennai branch, though pleased, were still reluctant and went on their wor in the usual
manner. "r :am, who had varied e'perience of about %$ years in sales, mareting and team
building started with a difficult wor on his hand. .e was e'pected to restore the business
and e'pand in a short time and at the same time win the confidence of the employees and
motivate them to establish the team spirit and healthy atmosphere at office.