MB0030 Set 1 and Set 2 Completed

Name: Falguni Pandit Registration No.
: 520966021
MBA – II SEM
Marketing Management - MB0030
MB0030
Registration No.: 520966021
Page No: 1 Name: Falguni Pandit |Registration No.:

520966021
Name: Falguni Pandit Registration No.: 520966021
MBA – II SEM
Set – 1
1.Analyze the existing business portfolio of

any one company using BCG matrix, GE
matrix, and Ansoff model.
ANS.
BCG Matrix of KFC
The need for strategy, in order to expand its existing
product in very promising markets for KFC is very essential.
KFC, along with McDonalds, and other major fast food
chains have dominated the American continent as well as
else where. Since the 1950’s when the founder of KFC had
a dream, of building an empire in the fast food market, the
company has undergone lots of changes. The company has
changed ownership; it has taken over from Pepsi and
passed over to Tricon, which owns Pizza hut, Taco bell and
others.
Nowadays, KFC, still dominates the chicken fast food
industry while has stores in more than 100 countries
operating vast profits. (De Witt 'et al.2004a) Although, due
to increased conditions of life, and differentiation of the life
style of the population around the world, there is still a lots
of room for expansion, especially in countries with large
population, and high development rate. KFC using the BCG

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matrix and SWOT analysis to analyze what is the current
position of the company and identify that the company has
the potentials to growth in fast food market.
In the late 1960s the Boston Consulting Group, a
leading management consulting company, designed a four-
cell matrix known as BCG Growth/Share Matrix. This tool
was developed to aid companies in the measurement of all
their company businesses according to relative market
share and market growth.
The BCG Matrix made a significant contribution to
strategic management and continues to be an important
strategic tool used by companies today. The matrix
provides a composite picture of the strategic position of
each separate business within a company so that the
management can determine the strengths and the needs of
all sectors of the firm. The development of the matrix
requires the assessment of a business portfolio, which
include an organization’s autonomous divisions ( activities,
or profit centers).
The BCG or growth- share matrix imposes a two-
dimensional analysis on management of Strategic Business
Units: a comparative analysis of business strength and an
assessment of the environment. The business strength
measure is the business;s Relative Market share. The
environmental measure is the Market Growth Rate.

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BCG Matrix: The market growth rate measures
industry attractiveness. Because for the case of YUM Brand,
all SBUs ( KFC, Taco Bell, Pizza Hut, Long John Silver’s,
A&W) are located in the same fast- food industry, the
referent standard is the industry growth rate measured
against the SBUs’ growth rate. The underlying theory for
examining market growth rate is the industry life cycle. The
BCG assumes that growth rates ( life cycle stages) affect a
firm’s finances.
Asia
USA
? Europe
Ameri
cas
Placing products in the BCG
matrix results in 4 categories
in a portfolio of a company:
1. Stars (=high growth, high market share)
• Use large amounts of cash and are leaders in the
business so they should also generate large

amounts of cash.

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• Frequently roughly in balance on net cash flow.
However if needed any attempt should be made to

hold share, because the rewards will be a cash
cow if market share is kept. So, KFC Malaysia is
under Star position.
2. Cash Cows (=low growth, high market share)
• Profits and cash generation should be high, and
because of the low growth, investments
needed should be low. Keep profits high.
3. Dogs (=low growth, low market share)
• Avoid and minimize the number of dogs in a
company.
• Beware of expensive ‘turn around plans’.
4. Question Marks (= high growth, low market share)

• Have the worst cash characteristics of all,
because high demands and low returns due to low
market share
• If nothing is done to change the market share,
question marks will simply absorb great amounts

of cash and later, as the growth stops, a dog.
The Characteristics of each SBU
Type SBU Strategy SBU Required Net Cash
profit Investment Flow
s
STAR Hold/ High High -or+
Increase
Cash Cow Hold High Low High+

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Question Increase/Div 0 or - Very High or High-or+
Mark est Disinvest
DOG Harvest or Low Disinvest +
Divest or-
The analysis requires that both measures be
calculated for each SBU. The business strength dimension,
relative market share, is included to measure competitive
advantage. The KFC is falling on cash cow where a low
growth and high market share is. So, the profit and cash
generation is high and because of low growth, investments
needed should be low. The funds received from cash cows
are often used to help other businesses within the
company, to allow the company to purchase other
businesses, or to return dividends to stockholders. So the
KFC should hold on what it has doing now.
Three Paths to Success (star-cash cow-question mark)
 Continuously generate cash cows and use the cash
throw-up by the cash cows to invest in the question
marks that are not self-sustaining
 Stars need a lot of reinvestments and as the market
matures, stars will degenerate into cash cows and the
process will be repeated.
 As for dogs, segment the markets and nurse the dogs
to health or manage for cash
Three Paths to Failure (star-question mark-dog, cash cow-
dog)

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 Over invest in cash cows and under invest in question
marks
 Trade further opportunities for present cash flow
 Under invest in the stars
 Allow competitors to gain share in a high growth
market
 Over milked the cash cows
strategy - portfolio analysis - ge matrix

The business portfolio is the collection of businesses and
products that make up the company. The best business
portfolio is one that fits the company's strengths and helps
exploit the most attractive opportunities.
The company must:
(1) Analyse its current business portfolio and decide which

businesses should receive more or less investment, and
(2) Develop growth strategies for adding new products and

businesses to the portfolio, whilst at the same time
deciding when products and businesses should no longer
be retained.
The two best-known portfolio planning methods are the

Boston Consulting Group Portfolio Matrix and the
McKinsey / General Electric Matrix (discussed in this
revision note). In both methods, the first step is to identify
the various Strategic Business Units ("SBU's") in a company
portfolio. An SBU is a unit of the company that has a
separate mission and objectives and that can be planned
independently from the other businesses. An SBU can be a
company division, a product line or even individual brands -
it all depends on how the company is organised.
The McKinsey / General Electric Matrix

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The McKinsey/GE Matrix overcomes a number of the
disadvantages of the BCG Box. Firstly, market
attractiveness replaces market growth as the
dimension of industry attractiveness, and includes a
broader range of factors other than just the market growth
rate. Secondly, competitive strength replaces market
share as the dimension by which the competitive position
of each SBU is assessed.
The diagram below illustrates some of the possible elements that determine
market attractiveness and competitive strength by applying the McKinsey/GE
Matrix to the UK retailing market:
Factors that Affect Market Attractiveness

Whilst any assessment of market attractiveness is
necessarily subjective, there are several factors which can
help determine attractiveness. These are listed below:
- Market size
- Market growth
- Market profitability
- Pricing trends

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- Competitive intensity / rivalry
- Overall risk of returns in the industry
- Opportunity to differentiate products and services
- Segmentation
- Distribution structure (e.g. retail , direct, wholesale)
Factors that Affect Competitive Strength
Factors to consider include:
-Strength of assets and competencies

- Relative brand strength
- Market share
- Customer loyalty
- Relative cost position (cost structure compared
with competitors)
- Distribution strength
- Record of technological or other innovation
- Access to financial and other investment
resources
Ansoff's product / market matrix

Introduction
The Ansoff Growth matrix is a tool that helps businesses

decide their product and market growth strategy.
Ansoff’s product/market growth matrix suggests that a

business’ attempts to grow depend on whether it markets
new or existing products in new or existing markets.

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The output from the Ansoff product/market matrix is a

series of suggested growth strategies that set the direction
for the business strategy. These are described below:
Market penetration
Market penetration is the name given to a growth strategy

where the business focuses on selling existing products
into existing markets.
Market penetration seeks to achieve four main objectives:
• Maintain or increase the market share of current products

– this can be achieved by a combination of competitive
pricing strategies, advertising, sales promotion and
perhaps more resources dedicated to personal selling
• Secure dominance of growth markets

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• Restructure a mature market by driving out competitors;
this would require a much more aggressive promotional
campaign, supported by a pricing strategy designed to
make the market unattractive for competitors
• Increase usage by existing customers – for example by

introducing loyalty schemes
A market penetration marketing strategy is very much
about “business as usual”. The business is focusing on
markets and products it knows well. It is likely to have good
information on competitors and on customer needs. It is
unlikely, therefore, that this strategy will require much
investment in new market research.
Market development
Market development is the name given to a growth

strategy where the business seeks to sell its existing
products into new markets.
There are many possible ways of approaching this strategy,

including:
• New geographical markets; for example exporting the

product to a new country
• New product dimensions or packaging: for example
• New distribution channels
• Different pricing policies to attract different customers or

create new market segments
Product development
Product development is the name given to a growth

strategy where a business aims to introduce new products
into existing markets. This strategy may require the
development of new competencies and requires the
business to develop modified products which can appeal to
existing markets.

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Diversification
Diversification is the name given to the growth strategy

where a business markets new products in new markets.
This is an inherently more risk strategy because the

business is moving into markets in which it has little or no
experience.
For a business to adopt a diversification strategy, therefore,

it must have a clear idea about what it expects to gain from
the strategy and an honest assessment of the risks
2. Discuss the Macro environment of a

pharmaceutical company
ANS. India has become an attractive destination for

R&D, with opportunities emerging in this new market post-
WTO (World Trade Organization) accession. India’s
industrial development has accelerated and its
pharmaceutical industry has become one of the most
successful. Driving factors attracting international
investment include:

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1WTO accession
2 low labor costs
3 tax incentives from the Chinese government
4 R&D collaboration opportunities.
The Chinese pharmaceutical market is split almost equally

between chemical and biotechnology products
at 70%, and TCM (traditional Chinese medicine) products at

30%. The Chinese government has changed the face of the
industry dramatically by:
● implementing WTO guidelines and protection for

intellectual property rights
● shifting authority from the Ministry of Foreign Trade to

the State Food and Drug Administration (SFDA). The SFDA
has imposed higher drug registration requirements for
imported as well as locally manufactured products and
promoted general compliance with the Chinese Good
Manufacturing Practice (GMP) standards for domestically
produced products. A number of domestic players could not
withstand this pressure from the government—many of
them closed their businesses whilst others looked to
upgrade their technologies through tie-ups with
foreigncompanies. The total value of the market in India
was US$12.8 billion in 2005. Antibiotics have slowly
decreased in sales; however, they still represent one-third
of the whole market. This is a large market share compared
with the other therapeutic classes. The three top
therapeutic classes (antibiotics, circulatory and alimentary
tract) represent around 60% of the whole market.
India’s TCM industry possesses great potential. The

key issue is how to inspire this, which requires government
attention and enterprise efforts. On one hand, the
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government must provide support with its policies; on the
other hand, the government should strengthen its
recommendations on Chinese medicine planting. India
possesses 12,807 kinds of medicinal materials from natural
sources out of which, 11,146 are of plant origin, 1,581 are
from animals, and 80 are from minerals, including more
than 5,000 clinically validated folk medicines.Compared
with the big global players, domestic vaccine producers
have small-scale production, are backward in production
technology and have high operation costs. In India, clinical
trials can be conducted at a much lower cost than in the
West. India has a pool of highly educated doctors who are
keen to participate in clinical trials. Although India is
beginning to accept foreign clinical data, almost all new
drugs entering the country must conduct domestic testing
in some form. At present, Class I, II and III drugs must
undergo phase I, II and III trials, although some Class III
products are exempt from phase I trials.
The major forces attracting foreign investors to India are:
● quality of the clinical data
● reasonable costs
● ability to select patients rapidly.
Despite the huge growth potential, commercial

health insurance still plays a minor role in the local market,
covering only a meager 10% of local residents' total

medical expenditures. Health insurance divides into
two types in India:
● Rural Health Protection System.
● Urban Health Protection System
● Government Insurance Scheme—covers government

employees

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● Labor Insurance Scheme—covers enterprise employees.
In India, only 15% of the population has health

insurance. Most of the rural population is not covered.
The Chinese R&D investment approach has been shifting

from technological alliances towards international mergers
and acquisitions. Overseas companies in India have
established 700 R&D centers. Pharmaceutical regulation in
India is based around the Drug Administration Law. The
government first implemented this law in 1984, with the
last major amendments taking place in 2001. In this
emerging market, intellectual property protection is a big
challenge. When India became a member of the WTO in
2001, it promised to uphold the Trade-Related Aspects of
Intellectual Property Rights (TRIPS) Accord, which
mandates that drugs receive at least 20 years of patent
protection.
Political and legal reluctance to uphold the patent

rights of foreign investors is not the only issue. Intellectual
theft comes in many forms, including small scale reverse
engineering and copying, systematic reverse R&D and
reverse engineering, and counterfeiting. The major
distribution channel in retail market is the hospitals, with
80% of pharmacy products going to patients through
hospitals. Biotechnology globally has experienced rapid
growth in recent years and promises enormous potential
for future growth. In India, the biotechnology companies
have developed more quickly than the pharmaceutical
companies have.
3.Explain the components of Marketing

information systems

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ANS. Components of a marketing information system
A marketing information system (MIS) is intended to bring

together disparate items of data into a coherent body of
information. An MIS is, as will shortly be seen, more than
raw data or information suitable for the purposes of
decision making. An MIS also provides methods for
interpreting the information the MIS provides. Moreover, as
Kotler's1 definition says, an MIS is more than a system of
data collection or a set of information technologies:
"A marketing information system is a continuing and

interacting structure of people, equipment and procedures
to gather, sort, analyse, evaluate, and distribute pertinent,
timely and accurate information for use by marketing
decision makers to improve their marketing planning,
implementation, and control".
Figure .1. illustrates the major components of an MIS, the

environmental factors monitored by the system and the
types of marketing decision which the MIS seeks to
underpin.
Figure .1. The marketing information systems and its subsystems

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The explanation of this model of an MIS begins with a
description of each of its four main constituent parts:
the internal reporting systems, marketing research
system, marketing intelligence system and marketing
models. It is suggested that whilst the MIS varies in its
degree of sophistication - with many in the industrialised
countries being computerised and few in the developing
countries being so - a fully fledged MIS should have
these components, the methods (and technologies) of
collection, storing, retrieving and processing data
notwithstanding.
Internal reporting systems: All enterprises which have been

in operation for any period of time nave a wealth of
information. However, this information often remains
under-utilised because it is compartmentalised, either in
the form of an individual entrepreneur or in the
functional departments of larger businesses. That is,
information is usually categorised according to its nature
so that there are, for example, financial, production,
manpower, marketing, stockholding and logistical data.
Often the entrepreneur, or various personnel working in
the functional departments holding these pieces of data,
do not see how it could help decision makers in other
functional areas. Similarly, decision makers can fail to
appreciate how information from other functional areas
might help them and therefore do not request it. The
internal records that are of immediate value to
marketing decisions are: orders received, stockholdings
and sales invoices. These are but a few of the internal
records that can be used by marketing managers, but
even this small set of records is capable of generating a
great deal of information. Below, is a list of some of the
information that can be derived from sales invoices.

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· Product type, size and pack type by territory
· Product type, size and pack type by type of account
· Product type, size and pack type by industry
· Product type, size and pack type by customer
· Average value and/or volume of sale by territory
· Average value and/or volume of sale by type of
account
· Average value and/or volume of sale by industry
· Average value and/or volume of sale by sales person
By comparing orders received with invoices an enterprise

can establish the extent to which it is providing an
acceptable level of customer service. In the same way,
comparing stockholding records with orders received
helps an enterprise ascertain whether its stocks are in
line with current demand patterns.
Marketing research systems: The general topic of

marketing research has been the prime ' subject of the
textbook and only a little more needs to be added here.
Marketing research is a proactive search for information.
That is, the enterprise which commissions these studies
does so to solve a perceived marketing problem. In many
cases, data is collected in a purposeful way to address a
well-defined problem (or a problem which can be defined
and solved within the course of the study). The other form
of marketing research centres not around a specific
marketing problem but is an attempt to continuously
monitor the marketing environment. These monitoring or
tracking exercises are continuous marketing research
studies, often involving panels of farmers, consumers or
distributors from which the same data is collected at
regular intervals. Whilst the ad hoc study and continuous
marketing research differs in the orientation, yet they are
both proactive.
Marketing intelligence systems: Whereas marketing

research is focused, market intelligence is not. A marketing
intelligence system is a set of procedures and data sources
used by marketing managers to sift information from the

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environment that they can use in their decision making.
This scanning of the economic and business environment
can be undertaken in a variety of ways, including2
Unfocused The manager, by virtue of what he/she reads, hears

scanning and watches exposes him/herself to information that
may prove useful. Whilst the behaviour is unfocused
and the manager has no specific purpose in mind, it
is not unintentional
Semi- Again, the manager is not in search of particular

focused pieces of information that he/she is actively
scanning searching but does narrow the range of media that is
scanned. For instance, the manager may focus more
on economic and business publications, broadcasts
etc. and pay less attention to political, scientific or
technological media.
Informal This describes the situation where a fairly limited and

search unstructured attempt is made to obtain information
for a specific purpose. For example, the marketing
manager of a firm considering entering the business
of importing frozen fish from a neighbouring country
may make informal inquiries as to prices and
demand levels of frozen and fresh fish. There would
be little structure to this search with the manager
making inquiries with traders he/she happens to
encounter as well as with other ad hoc contacts in
ministries, international aid agencies, with trade
associations, importers/exporters etc.
Formal This is a purposeful search after information in some

search systematic way. The information will be required to
address a specific issue. Whilst this sort of activity
may seem to share the characteristics of marketing
research the manager him/herself rather than a
professional researcher, carry it out. Moreover, the
scope of the search is likely to be narrow in scope
and far less intensive than marketing research

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Marketing intelligence is the province of entrepreneurs and
senior managers within an agribusiness. It involves them in
scanning newspaper trade magazines, business journals
and reports, economic forecasts and other media. In
addition it involves management in talking to producers,
suppliers and customers, as well as to competitors.
Nonetheless, it is a largely informal process of observing
and conversing.
Some enterprises will approach marketing intelligence

gathering in a more deliberate fashion and will train its
sales force, after-sales personnel and district/area
managers to take cognizance of competitors' actions,
customer complaints and requests and distributor
problems. Enterprises with vision will also encourage
intermediaries, such as collectors, retailers, traders and
other intermediaries to be proactive in conveying market
intelligence back to them.
Marketing models: Within the MIS there has to be the

means of interpreting information in order to give direction
to decision. These models may be computerised or may
not. Typical tools are:
· Time series sales modes

· Brand switching models
· Linear programming
· Elasticity models (price, incomes, demand, supply, etc.)
· Regression and correlation models
· Analysis of Variance (ANOVA) models
· Sensitivity analysis
· Discounted cash flow
· Spreadsheet 'what if models
These and similar mathematical, statistical, econometric

and financial models are the analytical subsystem of the
MIS. A relatively modest investment in a desktop computer
is enough to allow an enterprise to automate the analysis
of its data. Some of the models used are stochastic, i.e.
those containing a probabilistic element whereas others

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are deterministic models where chance plays no part.
Brand switching models are stochastic since these express
brand choices in probabilities whereas linear programming
is deterministic in that the relationships between variables
are expressed in exact mathematical terms.
4.Explain the Henry assael model of buying

decision behavior.
ANS.
High Low
involvement involvement
Significant Complex buying Variety seeking
difference behavior buying behavior
between brands
Few differences Dissonance Habitual buying
between brands reducing buying behavior.
behavior
Complex buying behavior :- customer who are representing

this behavior are highly involved in the purchase of the
product or service. The process became complex as
difference between brands are very high. For example,

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customer who wants to purchase refrigerator would like to
know the meanings of defrosting, door lock digital
temperature control etc…. the price of the product usually
high let me show you the comparison of three brands and
significant difference between them.

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Lg ge t – 282 Akai Electrolux

gv/ge d186 tt kelvinator
dx 386
Defrost   
system
Door lock   
Adjustable   
shelves
Moisture and   
humidity
control
Deodorizing   
ability
Water   
dispenser
Defrost   
system
From the above example it is clear that marketer should

first develop the belief about the brand, provide the
information and differentiate the company brand from
others. In the above example you can see both akai and lg
don’t have water dispenser while electrolux have. Both lg
and Electrolux have moisture and humidity control while
akai lacks it. Customer would like to know what these
features are and how they add value to the product.
Dissonance reducing buying behavior:

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The behavior exhibited by the customer when
product purchase requires high involvement but only few
differences exits. For example, customers who want to
purchase ctv will not many differences between the brands
but the price of the product and its technically makes
customer to involve more. One of the major disadvantages
of this type of behavior is customer will show post
purchase dissonance which is very difficult to control.
Variety – seeking buying behavior
When there are significant difference between the brands
existing but customer will not involve more while
purchasing, marketer identify this behavior of the customer
for biscuits. There are many varieties of biscuits available.
One can purchased salt biscuits, cream biscuits, marie
biscuits, and milk biscuits of Britannia, parle, itc sun feast
and other. The customer who purchased Britannia tiger
earlier may purchase sun feast cream biscuit next time.
This doesn’t mean that quality of Britannia tiger is inferior
to other brands but customer would like to try the varieties
available in the market. In this situation marketer should
undertake following steps
 The market leader should encourage customers
to buy repeatedly.
 Make the product available and visible to the
customer in the shopping places.

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 The firm who are not market leader should come
out with sales promotion techniques to
encourage customer to purchase the product .
Habitual buying behavior :-
The low involvement between the brands and few
differences between the brand leads to the habitual buying
behavior. For example spice powder marketed by mdh,
everest or mtr have very feew differences between them
and customer do not search the information to purchase
particular product. Marketers whose customer represent
this category should follow below listed strategies
 Use price and sales promotion to stimulate
product trial
 Use more visual aspect than the wordings in the
advertisement
 Television is the better media for this type of
products.
 Use classical conditioning theory to create
advertisements.
5. Discuss the segmentation strategy of a cement

company
ANS. MARKET SEGMENTATION
INTRODUCTION: - The market for any product is normally
made up of several segments. A ‘market’ after all is the
aggregate of consumers of a given product. And, consumer
(the end user),
user who makes a market, are of varying
characteristics and buying behavior. There are different

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factors contributing for varying mind set of consumers. It is
thus natural that many differing segments occur within a
market.
In order to capture this heterogeneous market for any
product, marketers usually divide or disintegrate the
market into a number of sub-markets/segments and the
process is known as market segmentation.
segmentation
Thus we can say that market segmentation is the

segmentation of markets into homogenous groups of
customers, each of them reacting differently to promotion,
communication, pricing and other variables of the
marketing mix. Market segments should be formed in that
way that difference between buyers within each segment is
as small as possible. Thus, every segment can be
addressed with an individually targeted marketing mix.
The importance of market segmentation results from the

fact that the buyers of a product or a service are no
homogenous group. Actually, every buyer has individual
needs, preferences, resources and behaviors. Since it is
virtually impossible to cater for every customer’s individual
characteristics, marketers group customers to market
segments by variables they have in common. These
common characteristics allow developing a standardized
marketing mix for all customers in this segment.
Through segmentation, the marketer can look at the
differences among the customer groups and decide on
appropriate strategies/offers for each group. This is
precisely why some marketing gurus/experts have
described segmentation as a strategy of dividing the
markets for conquering them.
MARKETING STRATEGY AND MARKET

SEGMENTATION: - When it comes to marketing
strategies, most people spontaneously think about the 4P
(Product, Price, Place, Promotion) – maybe extended by

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three more Ps for marketing services (People, Processes,
Physical Evidence).
Market segmentation and the identification of target

markets, however, are an important element of each
marketing strategy. They are the basis for determining any
particular marketing mix. Basic steps in marketing strategy
are as follows:-

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• ATTRIBUTES OF EFFECTIVE SEGMENTATION
Market segmentation is resorted to for achieving certain

practical purpose. For example, it has to be useful in
developing and implementing effective and practical
marketing programmes. For this to happen, the segments
arrived at must meet certain criteria such:-
a. Identifiable: The differentiating attributes of the

segments must be measurable so that they can be
identified.
b. Accessible: The segments must be reachable
through communication and distribution channels.
c. Sizeable: The segments should be sufficiently large
to justify the resources required to target them. A very
small segment may not serve commercial
exploitation.
d. Profitable: - There is no use in locating segments
that are sizeable but not profitable.
e. Unique needs: To justify separate offerings, the
segments must respond differently to the different
marketing mixes.
f. Durable: The segments should be relatively stable to
minimize the cost of frequent changes.
g. Measurable: The potential of the segments as well as
the effect of a specific marketing mix on them should
be measurable.
h. Compatible: - Segments must be compatible with
firm’s resources and capabilities.
• REASONS FOR MARKET SEGMENTATION
Segmentation is the basis for developing targeted and

effective marketing plans. Furthermore, analysis of market

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segments enables decisions about intensity of marketing
activities in particular segments.
A segment-orientated marketing approach generally offers

a range of advantages for both, businesses and customers.
1 . Facilitates proper choice of target marketing:-

marketing:
Segmentation helps the marketers to distinguish one
customer group from another within a given market and
thereby enables him to decide which segment should form
his target market.
2 . Higher Profits: -
It is often difficult to increase prices for the whole market.

Nevertheless, it is possible to develop premium segments
in which customers accept a higher price level. Such
segments could be distinguished from the mass market by
features like additional services, exclusive points of sale,
product variations and the like. A typical segment-based
price variation is by region. The generally higher price level
in big cities is evidence for this. When differentiating prices
by segments, organizations have to take care that there is
no chance for cannibalization between high-priced products
with high margins and budget offers in different segments.
This risk is the higher, the less distinguished the segments
are.
3 . Facilitates tapping of the market, adapting the

offer to the target:-Segmentation
target:- also enables the
marketer to crystallize the needs of target buyers. It also
helps him to generate an accurate prediction of the
likely responses from each segment of the target buyer.
Moreover, when buyers are handled after careful
segmentation, the responses for each segment will be
homogeneous. This in turn, will help the marketer

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develop marketing offer/programmers that most suited
to each groups. He can achieve specialization that is
required in product, distribution, promotion and pricing
for matching the particular customer group and develop
offers and appeals for the segmented group.
Example of Ford: - Ford has gained useful insights

through segmentation and adapted its offer to suit the
Indian target market. For the Indian segment Ford made
some changes in its cars in comparison to their
European version. Modifications such as: -
a. Higher ground clearance to make the car

compatible to the rougher road surface in India.
b. Stiffer rear springs to enable negotiating the
ubiquitous potholes on Indian roads.
c. Changes in cooling requirement, with greater
airflow to the rear.
d. Higher resistance to dust.
e. Compatibility of engine with the quality of fuel
available in India.
f. Location of horn buttons on the steering wheel. As
Indian motorists use horn far more frequently than
the European where the horns are located on the
lever.
4 . Stimulating Innovation: -
An undifferentiated marketing strategy that targets at all

customers in the total market necessarily reduces
customers’ preferences to the smallest common basis.
Segmentations provide information about smaller units
in the total market that share particular needs. Only the
identification of these needs enables a planned
development of new or improved products that better
meet the wishes of these customer groups. If a product

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meets and exceeds a customer’s expectations by adding
superior value, the customers normally is willing to pay a
higher price for that product. Thus, profit margins and
profitability of the innovating organizations increase.
5 . Makes the marketing effort more efficient and

economic: - Segmentation ensures that the marketing
effort is concentrated on well defined and carefully
chosen segments. After all, the resources of any firm are
limited and no firm can normally afford to attack and tap
the entire market without any delimitation whatsoever.
It would benefit the firm if the efforts were concentrated
on segments that are more profitable and productive
ones.
Segmentation also helps the marketer assess as to
what extend existing offer from competitors match
the needs of different customer segments. The
marketer can thus identify the relatively less satisfied
segments and succeed by concentrating on them and
satisfying their needs.
6 . Benefits the customer as well: -

Segmentation brings benefits not only to the marketer,
but to the customer as well. When segmentation attains
higher levels of sophistication and perfection, customers
and companies can conveniently settle down with each
other, as at such a stage, they can safely rely on each
other’s discrimination. The firm can anticipate the wants
of the customers and the customers can anticipate the
capabilities of the firm.
7 . Sustainable customer relationships in all phases

of customer life cycle: - Customers change their
preferences and patterns of behavior over time.
Organizations that serve different segments along a
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customer’s life cycle can guide their customers from
stage to stage by always offering them a special solution
for their particular needs. For example, many car
manufacturers offer a product range that caters for the
needs of all phases of a customer life cycle: first car for
early teens, fun-car for young professionals, family car
for young families, etc. Skin care cosmetics brands often
offer special series for babies, teens, normal skin, and
elder skin.
8 . Targeted communication: -
It is necessary to communicate in a segment-specific

way even if product features and brand identity are
identical in all market segments. Such a targeted
communications allows to stress those criteria that are
most relevant for each particular segment (e.g. price vs.
reliability vs. prestige).
9 . Higher market Shares: -
In contrast to an undifferentiated marketing strategy,

segmentation supports the development of niche
strategies. Thus marketing activities can be targeted at
highly attractive market segments in the beginning.
Market leadership in selected segments improves the
competitive position of the whole organization in its
relationship with suppliers, channel partners and
customers. It strengthens the brand and ensures
profitability. On that basis, organizations have better
chances to increase their market shares in the overall
market.

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• BASES FOR SEGMENTATION

Markets can be segmented using several relevant bases.
There are huge number of variables which leads to
market segmentation. They comprise easy to determine
demographic factors as well as variables on user
behavior or customer preferences. Segmentation is done
for consumer market and industrial market.
6. Case study
Software pricing: issues of client billing
Infosys, one of the major IT companies in India, has
developed a new method of pricing software maintenance
project. The new method is called as ‘ticket – based pricing.
The customer payment will be based on three types of
client request or ticket. First, customer may request for
small enhancement in the software application. Second,
customer may request for big enhancement in the software
application and third, request may be for a bug fix. Earlier
the methods used for pricing were ‘fixed price’ and ‘time
and material-based pricing’. Under the ‘time and material
based pricing’, customers are billed based on the number
of man-hours spent on a project, while under the fixed
price, the customer pays an agreed price that doesn’t vary
with the manpower deployed on the project. Infosys
developed this new pricing strategy after examining the
current pricing methods. Software application methods
become more stable after some time. If the client opted for

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fixed pricing and his request for software maintenance
reduced, still has to pay fixed maintenance charges. Ticket
based pricing will provide flexibility to the client. Many IT
majors have been trying to decrease the dependence of
revenue growth on manpower addition. But this is for the
first time such an attempt has been made to bring a
transaction-based pricing model. The new move is
expected to increase the revenue without a proportional
increase in the number of employees. Contrary to this view
many industry observers still feel that fixed price or time
and material based pricing provide continuous revenue.
The excess revenue available from these two methods can
be used for reserves or hedging. In case of ticket based
pricing client has to negotiate with the company every
time.
a. Do you think ticket based pricing will provide
continuous revenue to Infosys in the long term?
Comment
b. Compare three pricing strategies discussed here
and choose any one as your choice
ANS:-
A. yes, it should be provide continues revenues to
infosys in the long term
B. Pricing strategies:-
1. Competition-based pricing
Setting the price based upon prices of the similar
competitor products.
Competitive pricing is based on three types of competitive
product:
• Products have lasting distinctiveness from
competitor's product. Here we can assume
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o The product has low price elasticity.
o The product has low cross elasticity.
o The demand of the product will rise.
• Products have perishable distinctiveness from
competitor's product, assuming the product features
are medium distinctiveness.
• Products have little distinctiveness from competitor's
product. assuming that:
o The product has high price elasticity.
o The product has some cross elasticity.
o No expectation that demand of the product will
rise.
The pricing is done based on these three factors.
2. Cost-plus pricing
Cost-plus pricing is the simplest pricing method. The firm

calculates the cost of producing the product and adds on a
percentage (profit) to that price to give the selling price.
This method although simple has two flaws; it takes no
account of demand and there is no way of determining if
potential customers will purchase the product at the
calculated price.
Price = Cost of Production + Margin of Profit
3. Limit pricing
A limit price is the price set by a monopolist to discourage

economic entry into a market, and is illegal in many
countries. The limit price is the price that the entrant would
face upon entering as long as the incumbent firm did not
decrease output. The limit price is often lower than the
average cost of production or just low enough to make
entering not profitable. The quantity produced by the

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incumbent firm to act as a deterrent to entry is usually
larger than would be optimal for a monopolist, but might
still produce higher economic profits than would be earned
under perfect competition. The problem with limit pricing
as strategic behavior is that once the entrant has entered
the market, the quantity used as a threat to deter entry is
no longer the incumbent firm's best response. This means
that for limit pricing to be an effective deterrent to entry,
the threat must in some way be made credible. A way to
achieve this is for the incumbent firm to constrain itself to
produce a certain quantity whether entry occurs or not. An
example of this would be if the firm signed a union contract
to employ a certain (high) level of labor for a long period of
time.

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Set – 2
1. Explain the relevance of VALS to Marketing

ANS. About VALS™
VALS reflects a real-world pattern that explains the relationship between

personality traits and consumer behavior. VALS uses psychology to
analyze the dynamics underlying consumer preferences and choices.
VALS not only distinguishes differences in motivation, it also captures the
psychological and material constraints on consumer behavior. VALS is
based on current personality research into specific components of social
behavior. VALS asserts that people express their personalities through
their behaviors. People with different personalities engage in different
behaviors or exhibit similar behaviors for different reasons.
VALS™ is a marketing and consulting tool that helps businesses

worldwide develop and execute more effective strategies. The system
identifies current and future opportunities by segmenting the consumer
marketplace on the basis of the personality traits that drive consumer
behavior. VALS applies in all phases of the marketing process, from new-
product development and entry-stage targeting to communications strategy
and advertising. The basic tenet of VALS is that people express their
personalities through their behaviors. VALS specifically defines consumer
segments on the basis of those personality traits that affect behavior in the
marketplace. Rather than looking at what people do and segregating people
with like activities, VALS uses psychology to segment people according to
their distinct personality traits. The personality traits are the motivation—
the cause. Buying behavior becomes the effect—the observable, external
behavior prompted by an internal driver.

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VALS™ places U.S. adult consumers into one of eight segments

based on their responses to the VALS questionnaire. The main
dimensions of the segmentation framework are primary motivation
(the horizontal dimension) and resources (the vertical dimension).
Innovators
Innovators are successful, sophisticated, take-charge people with high self-

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esteem. Because they have such abundant resources, they exhibit all three
primary motivations in varying degrees. They are change leaders and are
the most receptive to new ideas and technologies. Innovators are very
active consumers, and their purchases reflect cultivated tastes for upscale,
niche products and services.
Image is important to Innovators, not as evidence of status or power but as
an expression of their taste, independence, and personality. Innovators are
among the established and emerging leaders in business and government,
yet they continue to seek challenges. Their lives are characterized by
variety. Their possessions and recreation reflect a cultivated taste for the
finer things in life.
Thinkers
Thinkers are motivated by ideals. They are mature, satisfied,
comfortable , and reflective people who value order, knowledge,
and responsibility. They tend to be well educated and actively seek
out information in the decision-making process. They are well-
informed about world and national events and are alert to
opportunities to broaden their knowledge. Thinkers have a
moderate respect for the status quo institutions of authority and
social decorum, but are open to consider new ideas. Although their
incomes allow them many choices, Thinkers are conservative,
practical consumers; they look for durability, functionality, and value
in the products they buy.
Achievers
Motivated by the desire for achievement, Achievers have goal-
oriented lifestyles and a deep commitment to career and family.
Their social lives reflect this focus and are structured around family,
their place of worship, and work. Achievers live conventional lives,
are politically conservative, and respect authority and the status
quo. They value consensus, predictability, and stability over risk,
intimacy, and self-discovery.
With many wants and needs, Achievers are active in the consumer
marketplace. Image is important to Achievers; they favor
established, prestige products and services that demonstrate
success to their peers. Because of their busy lives, they are often
interested in a variety of time-saving devices.
Experiencers
Experiencers are motivated by self-expression. As young,
enthusiastic, and impulsive consumers, Experiencers quickly
become enthusiastic about new possibilities but are equally quick to

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cool. They seek variety and excitement, savoring the new, the
offbeat, and the risky. Their energy finds an outlet in exercise,
sports, outdoor recreation, and social activities. Experiencers are
avid consumers and spend a comparatively high proportion of their
income on fashion, entertainment, and socializing. Their purchases
reflect the emphasis they place on looking good and having "cool"
stuff.
Believers
Like Thinkers, Believers are motivated by ideals. They are
conservative, conventional people with concrete beliefs based on
traditional, established codes: family, religion, community, and the
nation. Many Believers express moral codes that are deeply rooted
and literally interpreted. They follow established routines, organized
in large part around home, family, community, and social or
religious organizations to which they belong.
As consumers, Believers are predictable; they choose familiar
products and established brands. They favor American products
and are generally loyal customers.
Strivers
Strivers are trendy and fun loving. Because they are motivated by
achievement, Strivers are concerned about the opinions and
approval of others. Money defines success for Strivers, who don't
have enough of it to meet their desires. They favor stylish products
that emulate the purchases of people with greater material wealth.
Many see themselves as having a job rather than a career, and a
lack of skills and focus often prevents them from moving ahead.
Strivers are active consumers because shopping is both a social
activity and an opportunity to demonstrate to peers their ability to
buy. As consumers, they are as impulsive as their financial
circumstance will allow.
Makers
Like Experiencers, Makers are motivated by self-expression. They
express themselves and experience the world by working on it-
building a house, raising children, fixing a car, or canning
vegetables-and have enough skill and energy to carry out their
projects successfully. Makers are practical people who have
constructive skills and value self-sufficiency. They live within a

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traditional context of family, practical work, and physical recreation
and have little interest in what lies outside that context.
Makers are suspicious of new ideas and large institutions such as
big business. They are respectful of government authority and
organized labor, but resentful of government intrusion on individual
rights. They are unimpressed by material possessions other than
those with a practical or functional purpose. Because they prefer
value to luxury, they buy basic products.
Survivors
Survivors live narrowly focused lives. With few resources with which
to cope, they often believe that the world is changing too quickly.
They are comfortable with the familiar and are primarily concerned
with safety and security. Because they must focus on meeting
needs rather than fulfilling desires, Survivors do not show a strong
primary motivation.
Survivors are cautious consumers. They represent a very modest
market for most products and services. They are loyal to favorite
brands, especially if they can purchase them at a discount.
2. Critically analyze the product mix strategies of a

beverage company
ANS. PRODUCT MIX :- the number of product line and items
offered by marketing to consumer
A company’s product mix has four different dimensions. They are
product mix width, product mix length, and product mix depth and
product mix consistency.

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At Blue Ridge Beverage, Inc., we pride ourselves on offering great

beverage products and the very best in customer service, support and
educational training. We hope you will spend a few moments learning
about how we can help enhance your business.
A private company based in Salem, Virginia, Blue Ridge Beverage

Company Inc. is one of the largest wholesale beverage distributors in the
state of Virginia, selling a wide variety of beers, wine, soft drinks, and
bottled water to more than 3,500 customers in 36 counties in southwestern,
central, and southern Virginia. The company's four warehouses are located
in Salem, Waynesboro, Lynchburg, and South Boston, Virginia. Blue
Ridge is an authorized distributor of the Miller Brewing Company, a
relationship that has been in place since the early 1950s, and one that has
been the lifeblood of the company. In addition, Blue Ridge offers a wide
range of imported beer brands, including Becks, Corona, Fosters, Grolsch,
Molson, and Sapporo. Blue Ridge also always carries the products of
Miller's Plank Road Brewery; micro craft brews from the likes of Samuel
Adams, Rolling Rock, and Sierra Nevada; and malt alternatives such as
Twisted Tea, Mikes Hard Lemonade, and the Hoopers Hooch products.
Blue Ridge prides itself on an extensive portfolio of wines, which includes
fine wines from around the world and California, as well as wines from
Virginia and North Carolina. Blue Ridge also sells sparkling wine and
champagne, fortified and dessert wines, table wines, kosher wines, non-
alcoholic wines, coolers, and hard ciders. The company distributes bottled
water, primarily Evian and Perrier, soft drinks such as RC Cola, Diet-Rite,
7-Up, Canada Dry, Hires, and Nehi; and the Arizona and Mistic brands of
ready-to-drink tea products. Blue Ridge also sells new age beverages as
well as miscellaneous beverages like Orangina, Stewart's specialty sodas,

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and Yoo Hoo chocolate drink. Furthermore, Blue Ridge offers a variety of
services to its customers, including customized wait staff training, wine list
consulting, and party planning assistance. Blue Ridge is owned and
operated by the Archer family.

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Post-Prohibition Roots
While the United States outlawed the consumption of alcoholic beverages
in 1919, Virginia imposed its own Prohibition three years earlier, and in
Salem, Virginia, alcohol had been outlawed since 1893. Virginia's

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prohibition was far from a successful effort, however, due to neighboring
"wet" states, and it proved even more problematic because of Virginia's
long coastline that made smuggling easy. Moreover, in the mountainous
region of Southwest Virginia, especially in Franklin, County, adjacent to
Salem, there was a tradition of "moon shining," the illegal distillation of
alcohol in hidden makeshift stills. Even when Prohibition went into effect
around the country, Virginia had to contend with neighboring Maryland,
which was notorious for not enforcing Prohibition, reasoning that
enforcement of a Federal law was the Federal government's responsibility.
It was not surprising that by 1933 Virginia, like the rest of the country, was
eager to repeal Prohibition. In 1934 Virginia established the Department of
Alcoholic Beverage Control and many of the state's breweries that had
been forced to close in the 1910s were reopened and began to produce beer
once again, albeit with a lower alcohol content of 3.2 percent. Demand for
legalized beer and spirits led to the creation of distributorships and
wholesale operations across the country. It was no different in the Roanoke
area, which included Salem, even though Franklin County moonshiners
continued to ply their trade. The Blue Ridge Beverage Company was
founded in 1938 as a small wholesaler of beer and soft drinks to the
Roanoke valley.
Fifteen years later, in 1953, the company took a major step forward when
it became a Miller Brewing Company distributor. In business in Wisconsin
since 1855 when a German immigrant bought the Plank Road Brewery
(now the name of the company's craft beers), Miller did not expand beyond
its regional status until the years following World War II, when the
founder's grandson took the helm. By 1952 Miller products became
available in all 48 states as well as Hawaii. In many ways, Blue Ridge
Beverage would hitch its wagon to Miller's rising star.
The Archer's family involvement with Blue Ridge dated to 1958 when
James M. Archer, Jr., moved to Salem with his wife Regime. He came
from the Virginia town of Saltville, which, not surprisingly, was a major
salt producer. It had served as the main supplier to the South in the Civil
War. His wife, on the other hand, had been born in Belgium and because
of their Jewish heritage she and her family was forced to live under
assumed names during the occupation of Belgium by Nazi Germany. The
war also brought her into contact with James Archer, who was serving in
the United States military. The two were wed in 1945, she came to the
United States with him, and together they ran Blue Ridge Beverage,
buying into the business in 1958 and becoming full owners in 1960.

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Under the management of the Archers, Blue Ridge enjoyed steady
expansion, both in terms of markets and product offerings. The company
began selling wine in 1961 when it was able to pick up the franchised
rights of a distributor from Alexandria, Virginia, that was abandoning the
Roanoke market. Beer remained the backbone of Blue Ridge's business,
however, and the company continued to benefit from the growth of Miller,
which by 1968 had become the eighth largest brewer in the United States.
When it was acquired by the Phillip Morris Corporation a year later, Miller
took advantage of the deep pockets of its new corporate parent to launch
highly successful national marketing campaigns to build awareness of the
Miller brand and support the launch of new products, such as the popular
seven-ounce "pony bottle." There was also the highly successful Miller
Light launch, supported by countless commercials anchored by former
athletes taking sides over the seemingly unsolvable question: was Miller
Lite good because it was less filling or because it just tasted great? While
the answer was hashed out in a myriad of permutations, Miller Brewing
rose to become America's second largest brewer, trailing only Anheuser-
Busch. As the distributor of Miller products in the Roanoke Valley, Blue
Ridge shared in the success of the brewer.
James Archer Dies Suddenly: 1972
In 1972 James Archer died suddenly at the age of 51, the result of a heart
attack. His wife assumed the presidency of Blue Ridge, assisted by their
son, Robert A. Archer. Born in 1947 in Saltville like his father, the
younger Archer also served in the military. After graduating from Virginia
Tech with a degree in marketing in 1969 he served in Vietnam with the
82nd Airborne until early 1972 and remained in the U.S. Army Reserves
until eventually retiring as a colonel in 1999. When he came back from the
war to help his mother, Blue Ridge Beverage was still a small business,
employing just ten people. This situation would soon change, however, as
the family business--which was becoming one of the leading distributors
for Miller Brewing--enjoyed strong growth, thanks to its top supplier. In
addition, more members of the Archer family became involved, until four
of the children of James and Regime Archer held top positions at Blue
Ridge.
In a matter of five years, employment increased to more than 30, and
included the youngest of the Archer children, Paul, who took over as
operations manager in 1975. Having outgrown its warehouse space, Blue
Ridge also opened a new facility just outside of Salem. It, too, was soon
overwhelmed by a surge in business, and just two years later the company
expanded its new facilities. Blue Ridge also began investing in technology,

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introducing computers to handle accounting and inventory chores and
becoming the first area distributor to take orders with new hand-held
computers.
Blue Ridge expanded on a number of fronts in the 1980s. To keep pace the
business opened a new warehouse in 1985, a 78,000-square-foot structure
that would become home to the company's present-day headquarters.
Another Archer sibling, James E. Archer, joined the family business in
1983. He also graduated from Virginia Tech, earning a degree in industrial
engineering, and then joined the Army. While on an Army fellowship he
earned a master's degree in business administration at Emory University
and then went on to serve in Germany. When he came home, Blue Ridge
was too small to employ another family member, and so he went to work
for Corning Glass in Pennsylvania. In the early 1980s he decided to return
home to Salem and thought about starting his own engineering consulting
firm, but because of the strong growth at Blue Ridge, joining the family
business was a viable option. He took over as marketing manager and
spearheaded the effort to broaden the distributor's product lines. He
oversaw the addition of imported beers and a broader slate of wines. The
wine business was greatly enhanced in 1987 with the acquisition of a
Roanoke Valley rival, picking up its portfolio of brands to effectively
double Blue Ridge's wine business. Blue Ridge also grew its soft drink
offerings, adding bottled water like Evian and Perrier, and new age
beverages from Snapple, Arizona, and Mistic that were becoming popular
with consumers.
Miller products continued to be the heart of Blue Ridge's business,
however, and the Archer family built upon this foundation in the 1980s
through acquisitions. In 1984 the Archers bought Charlottesville, Virginia-
based Cavalier Beverage Company, to add a second Miller distributorship,
and dispatched Paul Archer to run the new business as general manager.
Four years later, Cavalier made an acquisition of its own, adding a Miller
distributor located in Harrisonburg, Virginia.
Sister Companies Merge: 1997
Both Blue Ridge and Cavalier continued to expand their territories and
broaden their product mix in the 1990s. In 1996, Cavalier acquired the RC
Cola franchise and began distributing Canada Dry products, Hawaiian
Punch drinks, and Snapple ice tea products. In that same year, Blue Ridge
also gained a local 7-Up franchise. Several months later, in June 1997,
sister company Cavalier was merged into Blue Ridge to create a larger,
leaner operation. It would then add to its core Miller Brewing business by
acquiring distributorships in Danville and Keysville, Virginia. Then, in

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February 1998, Blue Ridge added Lynchburg, Virginia, to the markets for
which it held the rights to distribute Miller products.
Blue Ridge was a much larger operation now, employing more than 250, a
far cry from the ten-person business it was when James Archer passed
away. It required an experienced person to serve as the chief financial
officer, and the family was fortunate to have such a person in the family,
the youngest daughter, Jackie, who had spent the previous 11 years
working in the banking industry in Chicago.
In 2002 Regine Archer, approaching 80 years of age, stepped down as
president of Blue Ridge and turned over the post to her son Robert.
Nevertheless, she stayed on as chairwoman of the company. In 2005 her
efforts in growing the business after losing her husband were recognized
when she was inducted into the Junior Achievement of Southwest
Virginia's hall of fame, becoming only the second woman to receive the
honor. Even as she was stepping back her involvement with the family
business, Blue Ridge was continuing to grow. The company was especially
active in supporting new Virginia wineries, representing ten of them. It
was also looking to add other new products, such as Hooper's Hooch and
its popular alcoholic lemon brew, and over beverages. Nevertheless, it was
the distribution of Miller Brewing products that remained the foundation
of the business and key to its ongoing growth.
Principal Competitors
PA Short Distributing; Valley Distributing Corporation.
Further Reading
Adams, Duncan, "Archer Heads Va. Chamber of Commerce," Roanoke
Times, February 5, 2004, p. C8.
------, "Survivor of Nazi Germany Honored," Roanoke Times, January 21,
2005, p. C8.
Carter, Emily Paine, "Tech Grad Becomes Major General," Roanoke
Times, March 3, 2005, p. 2.
— Ed Dinger
SOURCE: www.blueridgebeverage.com

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3. What is private brand? Explain private brand strategy

of a retailer
ANS. Private branding is when a large distribution channel member
(usually a retailer), buys from a manufacturer in bulk and puts its own
name on the product. This strategy is only practical when the retailer does
very high levels of volume. The advantages to the retailer are:
• more freedom and flexibility in pricing
• more control over product attributes and quality
• higher margins (or lower selling price)
• eliminates much of the manufacturer's promotional costs
The advantages to the manufacturer are:

• reduced promotional costs
• stability of sales volume (at least while the contract is operative)
Private label

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Private label products or services are typically those manufactured or
provided by one company for offer under another company's brand. Private
label goods and services are available in a wide range of industries from
food to cosmetics to web hosting. They are often positioned as lower cost
alternatives to regional, national or international brands, although recently
some private label brands have been positioned as "premium" brands to
compete with existing "name" brands.
Types of private labels
• Store brands - The retailer's name is very evident on the packaging.
• Store sub-brands - Products where the retailer's name is low-key on

the packaging.
• Umbrella branding - A generic brand, independent from the name of

the retailer.
• Individual brands - A name used in one category, this is only used to

promote a "real" discount product line.
• Exclusive brands - Again a name used in one category, but to

promote "added value" products within the category
• Distributor brands - Large wholesale grocers and foodservice

purveyors often have private labels, for example the Parade brand of
Federated Foodservice and the wide array of private brands of the
large food service supplier Sysco. These brands are typically seen in
non-chain independent restaurants and stores that cannot afford their
own private labeling.
• Copycat private labels - brands owned by a retailer which use

similar trade dress, i.e. packaging as a leading national brand.
• Credit cards - The retailer's name/logo and branding makes up the

'look' of the plastic card (as opposed to it being a [MasterCard]
credit card, though co-brand cards also exist). Credit service on
private-label cards is often provided by a third-party issuer as
retailers continue to outsource their in-house programs.
There has been a significant increase in private label brands in the recent
years worldwide. In Europe, private label goods now account for about
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45% of products sold in supermarkets, compared to 25% in the USA. Wal-
Mart, for instance, has a 40% private label representation in their stores.
[citation needed]
Pacific rim countries, such as Australia, Singapore, and Japan,
also have significant presence of private labels on store shelves.
Historically, private labels were seen as low-priced, low-quality products.
In recent years, however, companies have started using private labels to
market higher quality items, and many believe high-quality private labels
will increase their presence.
Some grocery chains now sell primarily private label products. Examples
include Trader Joe's and the European grocery chains Aldi and Leader
Price.
2007 Pet food recalls
Main article: 2007 pet food recalls
In 2007, there was a recall in the United States of more than 60 million
cans of pet food sold under more than 100 brand names made by Menu
Foods. The mass recall lifted the curtain on a common practice in
consumer products that competing brands are often made by the same
manufacturer. However, ingredients, designs and quality may differ
substantially among the labels made under the same umbrella. [3]
[edit] Examples of private label manufacturers
Store Brands: (Products distributed and sold using the store's name)
• Whole Foods Market
• Food Lion
• Kroger - Kroger uses a three-tier store brand system:
Kroger Value: Lower tier brand; formerly known as For Maximum Value
and Cost Cutters even before that. This tier is also labeled bilingually in
English and Spanish.
Kroger: Middle tier brand
Private Selection: Upper-scale brand; this is targeted towards customers
looking for better quality rather than lower prices.
Private Label Manufacturers
• Topco (Skokie, Illinois)- Brands- Food Club (moderate price), Valu
Time (budget) Available in several intermediate grocery chains.
Sometimes produces Store brand products as well.
• FOSFA (Breclav, Czech Republic) - producent of laundry detergents

and cleaners specialized in private label manufacturing.

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• Associated Wholesale Grocers, Inc. (Kansas City, Kansas)- Brands-
Best Choice (moderate), Always Save (budget). Available at
intermediate grocers as well as Kmart.
• Huish Detergents, Inc. - Manufactures Store Branded laundry

detergents, fabric softener, bleaches, and other household cleaners.
They produce laundry detergent for Wal*Mart, Costco, Sam's Club,
Sears, Walgreens, Albertsons, Lucky, H-E-B,
Safeway/Von's/Pavilions, Stater Bros., and Ralph's/Kroger.
• NHK Laboratories, Inc. (Santa Fe Springs, California) -

Manufacturer of private label dietary supplements and
pharmaceuticals.
• Alimentos Kamuk, S.A. (Cartago, Costa Rica) Manufacturer /

Exporter of Private Label only Hot Sauce & Related Products.
Available World Wide in select supermarket chains by over 30
individual brands.
• Traverse Bay Farms, Private label manufacturer / Gourmet and Fruit

Salsas. Traverse Bay Farms gourmet and fruit salsa were voted #1 in
America for 2 straight years from America's Best National Food
Competition.
• 3 topole - Manufacturer and exporter of private label confectionery

products, supplier to major grocery chains in Poland and Europe.
• PBM Products - Manufacturer of store brand infant formula

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4. Explain the partner relationship management at Airtel

ANS.
Partner Relationship Management

Bharti Airtel's requirements with respect to Partner Relationship
Management. Bharti Airtel partner engagement strategies focus on
selecting the most capable partners worldwide and continuously working
with them to enhance their capabilities of providing conforming goods or
services, on time. The fundamental criterion for selecting and developing a
long-term relationship with our partners is Best Value. Best Value applies
not only to product cost, but also to costs and risks of acquisition and
materials handling. Best Value, therefore includes the partner's service
level, contribution to initiatives, and conformance to quality on all the
requirements outlined in this manual.
Bharti Airtel's PRM Process comprises of the following steps
o Categorization
o Rewards & recognition

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o Satisfaction level
o Communication
o Grievances
• Categorization
Partner categorization is done on the following parameters

o Business Size
o Business Impact
o Business Model
o Type of product/item/service
o Type of Technology & Domain knowledge
o Performance status
Partner Categories are

o Privileged Partners - Registered, Approved, have contracts,
currently supplying and Delight us on every aspect of
business engagement.
o Preferred Partners - Registered, Approved, Have contracts,

supplying with satisfactory performance
o Present Partners - Registered, Approved, Have contracts and

currently supplying
o Potential Partners - Registered & Approved but no contract

with them
• Partner categorization is decided by the panel of experts from

costing and pricing verticalof SCM function. Based on the category
type, following privileges are given to partners

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Parameters Privileged Preferred Present Potential

Partners Partners Partners Partner
Strategic Strategic ---
Partner Partnership --- ---
can done
Airtel Office ---

Facilities for space,
--- ---
Partners Canteen,
Parking
Risk Risk ---

--- ---
Sharing
Advances Max. 5% of requirement

the buying justification
within a
fiscal and --- ---
recovery in
12 equal
installments
Engagement Need
High Medium ---
Meetings Based
New Business Preferred Considered Considered

opportunities Preferred over over non
potential registered

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•
•
•
• Rewards and Recognition
Consistent performance is the basis for rewarding and recognising
Partners. The reward and recognition criteraia is partner performance
score card. The performance is analysed for different partner
categories.
•
•
• Paramters
The list of paramters and their weightages are
SN Ranking Parameters Weightages
1 Cost 25
2 Quality 15
3 Delivery 15
Development / Innovation / New

4 10
Technology
5 After Sales service / SLA 15
6 Responsiveness / Flexibility 10
BACKWARD Compatibility /
7 5
Scalability
8 Systems and Processes 5

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•
• Differentiators
Key differentiators for the parameters are
SN Parameter Key Differentiators
Beating Inflation
Alternate Sourcing
1 Cost Value Engineering
Continuous Cost
Reduction Y-on-Y
Minimum Failure on
Receipt
No infant Failure
First time Acceptance
Quality Certification
2 Quality Consistent Quality in
long run
Quality Culture
initiatives
Minimum Outage
Eco Friendliness
On Time, as required
Consistency
3 Delivery
Handling Challenges
Delivery in Exigency
4 Development / Value Engineering

Innovation / New Time to Market
Technology Competitive advantage
Value for Money /
Value Added
Focus on R & D
Additional Revenue

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Stream
Go to Market
No Outage
Spares Availability
Meeting TAT
Preventive Maintenance
After Sales service / Response Time
5
SLA Resolution within SLA
Detect-ability of the
defects - online
monitoring
24 X 7 Support
Meeting Challenges
Speed of Response
Responsiveness / Willingness to raise the
6
Flexibility bar
Understanding
Customer needs
Product Life Cycle -

integration with
BACKWARD Technology
7 Compatibility / Timely Investments
Scalability Breadth & Depth
Alignment with Airtel 's
Strategy
Proactive Regulatory
Compliance
8 Systems and Processes Innovative Business
Models implementation
Improvement Focus

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Partners are selected based on the following criterias
o Covers all major categories
o Major share of business in the category
The scoring of each partner is carried by a evaluation team consisting
of key users. Scores are compiled and ranking is carried out.
• Award Categories
The award categories are dynamic and primarily depend on Airtel's
Key thrust areas for the fiscal.
o Product
o Services
o Special
• Award Announcement
Awards are announced and presented during the annual partnership
meets. Consistent & good performers are recognized whereas bad
performances are warned and punitive actions taken, as required, from
time to time.
• Partner Satisfaction
Partner Satisfaction is considered as important tool by Bharti Airtel to
improve and further develop its internal processes and external
processes with partners in the supply chain network. Partner
Satisfaction is considered
o As an element of supply chain management including
partnership, supply management and collaboration, quality management
and reverse marketing
o As an analogical element with customer satisfaction
including marketing research
o As analogical approach with 360° methodology .
In order to obtain an unbiased feedback, the surveys is conducted by an
independent external agency. Survey parameters are jointly decided by
partner approval team and the agency. These surveys are conducted
once a year for selected Partners. The confidentiality of the survey data
is maintained by the agency and is not disclosed to Bharti Airtel.

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The outcome of the survey would include

o Area of improvements
o Internal Benchmarks
o Competition Benchmarking
o Best Practices
The results and feedback received from the partner satisfaction survey
would be used to improve partner engagement processes at all levels of
the organization. Partner touch-points would also be given feedbacks
on their interaction & support effectiveness.
• Partner Grievances
Bharti Airtel recognizes Partners as one of the key stakeholders of its
business and hence it is important to address their grievances in
transparent and structured manner. Issues related to ethics and integrity
are handled by Ombudsman Process as per the Bharti Airtel Code of
Conduct policy.
All other grievances are monitored, reviewed and resolved by Supply
Chain Council. This council comprises of senior members of the supply
chain function. Partner identity is kept confidential in case of sensitive
grievances like integrity issues.
• Types of grievances
Grievences are broadly classified in the following catagories
o Payments
o Dispute/Disagreement in bussiness
o Unethical/Integrity/Code of Conduct violations
There are different channels through which Partners can register their
grievances
o Partner Portal (to be activated soon)
o E-mails to helpdesk

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Overview of Partner grievances handling process is given below
Parner Grievance Handling Stages
Partner registers grievance through available channels
Receive the grievance and forward to respective

teams.
Analysis on the grievance and come out with action

plan. Implementation of the action plan.
Partners are communicated with action taken

• Partner Communication
This section outlines Bharti Airtel requirements with respect to Partner
Communication. Bharti Airtel believes that Communiaction is the
nerve line for any partnership and focuses on establishing a transparent,
two-way and trusting relationship with all partners.
Communication with partners is done at different levels

o Functional Directors - Conceptualization of requirement,
delivery timing and KPI's
o User Owner - Delivery as per specification, timeline and
usage requirement
o Supply Chain Team - Commercial and Contractual
Agreements
o Governance Team - Code of Conduct, Contractal
Obligations and Ethical Issues
Three types of communications are considered
o Strategic
o Operational
o Need Based

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5. Critically analyze the five best advertisements released
in this year
ANS.
“Analysis of 6 TV
Advertisements”
Table of Contents
Sl.
Topic
No.
I Introduction
II Advertisement 1 – Mountain Dew’s “Bad Cheetah” Ad
III Advertisement 2 – Kinetic Blaze Introductory Ad
IV Advertisement 3 – Gillette’s “Champions” Ad
V Advertisement 4 – Orbit White Chewing Gum “Cow” Ad
VI Advertisement 5 – VISA’s Pierce Brosnan Ad
VII Advertisement 6 – Surf Excel’s Ad (Brother & Sister Duo)
VIII TV Advertising
IX Advertising Success
X Conclusion
Introduction
A television advertisement or television commercial is a span of television

programming produced and paid for by an organisation that conveys a
message. Advertisement revenue provides a significant portion of the
funding for most privately owned television networks. The vast majority of
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television advertisements today consist of brief advertising spots, ranging
in length from a few seconds to several minutes (as well as program-
length infomercials). Advertisements of this sort have been used to sell
every product imaginable over the years, from household products to
goods and services, to political campaigns. Many television advertisements
feature catchy jingles (songs or melodies) or catch-phrases that generate
sustained appeal, which may remain in the minds of television viewers
long after the span of the advertising campaign. Some of these ad jingles
or catch-phrases may take on lives of their own, spawning gags or “riffs”
that may appear in other forms of media, such as comedy movies or
television variety shows, or in written media, such as
magazine comics or literature. These long-lasting advertising elements
may therefore be said to have taken a place in the pop culture history of the
demographic to which they have appeared. Advertising agencies often
use humour as a tool in their creative marketing campaigns. In fact, many
psychological studies tried to demonstrate the effect of humour and
indicate the way to empower advertising persuasion. Advertising agencies
often use humour as a tool in their creative marketing campaigns. In fact,
many psychological studies tried to demonstrate the effect of humour and
indicate the way to empower advertising persuasion. Despite the
popularity of some advertisements, many consider them to be an
annoyance for a number of reasons. The main reason may be that the
sound volume of advertisements tends to be higher (and in some cases
much higher) than that of regular programming. The increasing number of
advertisements, as well as overplaying of the same advertisement are
secondary annoyance factors. A third might be the increasing ability to
advertise on television, prompting ad campaigns by everyone from cell-
phone companies and fast food restaurants to local businesses and small
businesses. From a cognitive standpoint, the core reason people find
advertisements annoying is that the advertisement’s offer is not of interest
at that moment, or the presentation is unclear. A typical viewer has seen
enough advertisements to anticipate that most advertisements will be
bothersome, prompting the viewer to be mercilessly selective in their
viewing. Conversely, if an advertisement strikes a chord with the viewer
(such as an ad for debt relief shown to a viewer who has received a late
notice in the mail), or has entertainment value beyond the basic message,
then viewers tend to stay with the advertisement, perhaps even looking
forward to viewing it again.
Facts and Figures of Television Advertising 2004-2008

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Count of Advertisers and Brands.
The number of advertisers needed to promote the brands has steadily

grown at a higher percentage than the number of brands, themselves. In the
period spanning 2004 to 2007, the advertisers outnumbered the companies.
This gave the companies a choice of advertisers so as to get the best deal
and the best advertising strategy. However, in the last year, the number of
brands fell. This is due to many reasons including recession, inflation and
vigorous competition. As the number of companies in the market started to
fall, so did the number of advertisers. The advertisers are highly dependent
on the companies to generate contracts and hence, revenue. In most
companies, although they have a separate advertising department, they
generally outsource the creative work to advertising agencies. Therefore,
when the companies face a tight financial situation, they generally cut back
on their advertising expenditure. This directly impacts the advertisers,
whose sole occupation is the provision of advertisements. Thus, we can see
a steeper fall in the number of advertisers to a gentler fall in the number of
brands.

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Average ads/day on a channel.
The medium of TV advertising has seen rapid growth in the pas couple of
years. TV shows have started to invite more advertisements than before.
While there were only 197 advertisements in 2004 that served as “fillers”
during commercial breaks, as of 2007, that number rose by almost 45%.
Today, advertisements are not considered separate from the show timings,
but are clubbed with the shows and are taken for granted. What can also be
seen by the graph is, with a decrease in the number of brands and the
corresponding fall in the number of advertisers, the number of break-time
fillers has also come down in the last year. With fewer brands and even
fewer advertisers, the number of advertisements that feature in commercial
breaks has also been impacted.
Advertisement 1
Mountain Dew’s “Bad Cheetah” Advertisement

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This is a campaign that has confined itself to barely three commercials.

The common thing in all these commercials is the group of boys out on a
safari. They are generally roaming about shouting - Do the Dew!
Let us analyze one of the advertisements.
The commercial shows a cheetah running in all its gusto, and one of our
models following it on a bicycle. Finally, the lad jumps on the cheetah and
traps him. Then he puts his hand inside the cheetah’s mouth...straight
down to his stomach, and pulls out a can of Mountain Dew. “Bad Cheetah”
- he says. The other guys watching him say to each other - “Cheetah bhi
peeta hain!” Then they show the cheetah with all the spots gone except for
a few spots which spell out - Do the Dew.
The commercial fails to follow some vital rules of advertising. There is
absolutely no brand positioning. Which bracket of people is it targeting?
What benefit is it giving you?
Secondly, their models seem possessed, running around jungles with
colourful clothes, jumping on cheetahs and shouting at the top of their
voices. The viewers have no point of reference to identify themselves with
either the product or the advertising tone.
Thirdly, there is no advertising message – at least nothing that makes any
sense. Why would anyone want to drink something that a Cheetah
allegedly drinks? How did the Cheetah get hold of the can of Mountain
Dew in the first place? In fact, this advertisement has more environmental
and wildlife ramifications than any connection with the product.
Fourthly, it is a very paltry hand at humour. If the intention of the
advertisers was to excite the audience and make them laugh, they have
failed miserably. This advertisement has induced to people only to switch
channels because of its senseless advertising message, theme and
conception.
Fifthly and most importantly, the advertisement says nothing at all about
the drink, except, of course, to extol its endearing quality it to Cheetahs.
What is the taste? Does it quench your thirst? Does it make you feel cool?
Is it refreshing?
If this advertisement is remembered at all, it is remembered for all the
wrong reasons. From the very beginning of the Mountain Dew’s ad

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campaign, it has come under some very serious firing. When they launched
their first ad featuring the infamous slogan – “Do the Dew”, other aerated
drink manufacturers immediately saw its potential by piggybacking on the
fame and releasing a parody. The parody achieved what the original never
did. Today, viewers instantly relate this slogan to “No do here, go do
jhaadi ke peeche.”
The Mountain Dew advertisement failed at the ad mantra – AIDA.
Although it did catch the attention of the viewer the first time it was aired.
It did not generate any interest or desire. It crashed so bad that not only
was the ad campaign scrapped, so was the product. Even if bottles of
Mountain Dew line the shelves of stores today, its sales barely make a dent
in the profits of the company.
Advertisement 2
Kinetic Blaze Introductory Advertisement
The Blaze is part of Kinetic's Italiano series of scooters, comprises seven

bestselling true-blue European scooter designs that Kinetic bought from
Italian manufacturer Italjet. With its aggressive and glamorous Italian
design, generous proportions and majestic presence, the very special Blaze
makes an instant celebrity of its rider. The high-spec Blaze also has ample
go to match the show – with a powerful 165cc, 4 valve engine that pumps
out 11.6 bhp, coupled with automatic transmission.
Kinetic Blaze was launched in 2006. The following is an analysis of the
introductory advertisement.
In this advertisement, a group of girls are seen going crazy in front of a
house. A guy seeing the crowd of girls asks a nearby shopkeeper if
Abhishek or John were around. The shopkeeper says it is Rohit Verma. He
has Kinetic’s latest scooter and this is the source of all the commotion.

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This advertisement is clearly targeted towards the youth. Not only are the
models used in the age group of 20-30, the entire look and feel of the
advertisement is young and “hep”. This commercial scores on some points
while it fails at others.
First of all, the advertisement develops attention and generates interest.
Viewers are kept in the dark as to the source of the commotion. Interest is
heightened when the shopkeeper answers in the negative to the names of
celebrities. When the name “Rohit Verma” is mentioned, viewers are all
ears (and eyes) to find out more about him.The presentation of the product,
in this case the scooter, is also well done. It looks glamorous, and the
difference in size and shape are also highlighted without words,
heightening the impact. The product and the brand are not lost in the
advertisement, and viewers not only identify the product, but also
remember it. Its market targeting and brand positioning are clearly defined.
The target is the middle income male youth. It is positioned as a scooter
for men and the first in ushering in a new market segment for scooters with
its innovative design and target market.
However, the advertisement itself fails to generate a desire for more
information or for purchase. This desire is evoked by the fact that the
scooter is new and innovative. If the same advertisement was broadcast for
a scooter that had already been launched in the market, it would not have
done well. So, in a way, this advertisement works for the product since it is
new, but considered solely from the advertising point of view, it does not
make a big impact.
The advertisement also fails to answer some of the basic questions that
consumers have while watching the commercial. What sets this scooter
apart from the other scooters in the market? It is obvious that the look and
feel of the scooter is definitely innovative. However, all new products
sport a new appearance, in fact, it is imperative that they do so. So in terms
of performance, how does it differ? What is its USP? Why should the
consumer choose to buy this product, when he can be sure of the
performance of tried-and-tested scooters?
From the advertising point of view, the commercial lacks originality and
creativity. Showing a crowd of screaming girls to enhance the
psychological value of a product is not new. Many advertisements for
motorbikes, furniture, cars etc., showcase models to give the product an
“oomph” factor and increase its appeal. Also, from a logical standpoint,
why would the girls favour a guy based only on the fact that he has this
scooter? How does it award him star status?

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The advertising message is vague and unappealing. It is understood that
the product is being positioned as “your Shortcut To Fame”. But, how?
Most motorbike advertisements try to project their product as one that will
give the owner an edge with the ladies. The advertisement says much, but
tells little.

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Advertisement 3
Gillette’s “Champions” Advertisement
Gillette is a brand of Procter & Gamble currently used for safety

razors among other personal hygiene products. It is one of several brands
originally owned by The Gillette Company, a leading global supplier of
products under various brands, which was acquired by P&G in 2005.
The Gillette Fusion is a five-bladed razor released in 2006. There are two
different versions of the Fusion available: the Gillette Fusion, and
the Gillette Fusion Power. All share the characteristic five blades on the
front, and a single sixth blade on the rear that acts as a "precision trimmer".
In addition, the Fusion Power is battery powered and emits "gentle micro
pulses" that are claimed to increase razor glide. With the release of
Gillette Fusion, P&G also launched their new advertising campaign called
“Gillette Champions”. The following is an analysis of the first
advertisement broadcast in this series.
This advertisement features the Gillette champions -- Tiger Woods,
Thierry Henry and Roger Federer. The commercial is called “Today” and
all the three Champions explain how important it is in their professional
and personal lives to ‘Be Your Best Today’.
The advertising campaign exploits the influencing power of brand
ambassadors. The Gillette ‘Champions’ are Roger Federer (No.1 Tennis
Player), Thierry Henry (No.1 Football Player) and Tiger Woods (No.1
Golfer). The Indian campaign is varied to include Rahul Dravid to cater to
Indian sensibilities.
The advertisers try to use the concept of transference or association to
enhance the image of their product and brand. The attributes of quality,
performance and excellence exuded by these personalities are projected
onto the product and the brand. This builds brand image and a favourable
attitude towards the new product.
A sense of polish and “class” underscores the entire advertisement. It plays
on the viewers’ “feel-good” sensations. The advertisement comes across as
smooth and urbane.

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However, it does feel as if the advertisers are trying to hard by roping in
three (or four) brand ambassadors. Most advertisers feel that having
celebrities or stars advertise their product influences the consumers more
than an advertisement that does not feature them. But, there is something
called too much stress on the influence of brand ambassadors.
There seems to be little relevance amongst the slogan, the advertisement
and the product. Gillette may be the best a man can get, but how does that
help the ‘Champions’ in their respective sports? Form a logical standpoint,
how does the new razor blade assist the players?
The audio of the advertisement bears little or no relevance to the
advertising message. The advertisement talks about focusing on the
present, but says nothing about the new blade.
Nevertheless, overall, the advertisement comes across as suave. The brand
image of Gillette is maintained and even enhanced by this advertisement.
The advertisement succeeds in generating a desire and action to purchase
in spite of the drawbacks of the advertisement.

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Advertisement 4
Orbit White Chewing Gum “Cow” Advertisement
Orbit is one of the world's largest selling chewing gum brand.In India, the
brand shares the market leadership with Center Fresh brand.Orbit was
launched in India in 2004. This was India's first Sugarfree chewing gum
and together with Perfetti's Happydent, this brand has rejuvenated the
chewing gum segment in India.
Orbit can be termed as a functional chewing gum. The brand when
launched differentiated itself from the existing chewing gums with its
"sugar free" property. Globally the Orbit brand adopts the tagline "For a
good clean feeling no matter what" in India, Orbit uses " for healthy teeth
and prevents tooth decay " as its main message.
Orbit White launched their most popular advertising campaign with the
“Cow” series. The following is an analysis of the first advertisement in this
series.
The advertisement showcases a mad animal specialist, Dr. Bhatawdekar,
who speaks in ‘Butler-English’. He expounds the special quality of Orbit
White Chewing Gum that whitens the teeth of a cow that previously had
yellow teeth. His conclusion is that if it works for the cow, it’ll work for
you too.
This commercial tries its hand at humour in drawing attention and
generating interest. It succeeds to quite an extent in this intention, but also
fails at few places.
The caricature of the doctor succeeds exceedingly well. Viewers
immediately recall the product, the brand and the entire advertisement on
any reference to Dr. Bhatawdekar.
The product and brand are duly highlighted. They are not lost during the
telecast of the advertisement. The commercial’s message is wound around
the product, making the product and brand as much a part of the
advertisement as the rest of the characters and the concept.
The advertisement also successfully plays to the sense of humour of the
viewers. Any reference to the product results in immediate association to

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the doctor and his cow volunteer. This gives viewers a light-hearted view
of the product.
Nonetheless, there have been instances where the sentiments of viewers
have been hurt. In such cases, it seems that the concept that starts out as
funny, turns out to be a gross miscalculation of the sense of humour of the
viewers.
The characterization of the doctor and the way he speaks in English can be
construed as offensive by many viewers. Since the doctor is a deliberate
attempt at making fun of bad grammar, viewers who are insecure of their
oral abilities may find the advertisement offensive.
Overall, the advertisement has no class. Viewers can be put off by the
commercial on grounds that it displays no sophistication. The attempt at
humour can be seen as tending towards slapstick comedy – and a very poor
attempt at that.
However, the advertisement does not fail completely. The product and
brand are imprinted in the minds of the consumer. Any reference to the
product brings remembrance of the humorous advertisement. And
consumers purchase the product, even if only out of a sense of absurdity.

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Advertisement 5
VISA’s Pierce Brosnan Advertisement
Visa Inc. operates the world's largest retail electronic payments network
and is one of the most recognized global financial services brands. Visa
facilitates global commerce through the transfer of value and information
among financial institutions, merchants, consumers, businesses and
government entities.
Visa gained the attention of television viewers in 2003 with a ‘Tuk Tuk’,
featuring Pierce Brosnan in Bangkok. The following is an analysis of the
advertisement.
A limousine drives through the streets of Bangkok, only to be thwarted by
a traffic jam. Pierce Brosnan winds down his window and catches the eye
of a tuk tuk driver. The driver, delighted to have James Bond in the back
seat, revs the engine and pulls a wheelie, beginning a stunt-filled and
effects-laden ride through the alleyways, restaurants and shops of
Bangkok. The tuk tuk arrives at the hotel just as Brosnan’s dining partner
pulls up in a limousine.
Zhang Ziyi steps out and apologise for being late. The tuk tuk collapses,
totally exhausted by the trip across town. Brosnan reaches for his jacket
pocket and throws his VISA card to the driver. Later in the evening, the
tuk tuk driver pulls up with a brand new tuk tuk, revving his engine and
beckoning for Brosnan and Zhang Ziyi to join him. The tagline: “Visa: All
it takes.”
This advertisement can be considered a success. It does a lot of things right
and gains not only the attention and interest of the viewers, but also builds
a strong brand image and remembrance.
The product is clear and highlighted. The brand, too, is not lost during the
course of the advertisement. The product and brand is the core of the
advertising message. Any attempt to analyze the commercial otherwise
would prove fruitless.
The advertisement retains a “dashing” air, quite literally. The commercial
successfully draws on the sophisticated action of James Bond and
highlights it exceedingly well in the tuk tuk mad-dash through the city.

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The advertisement stays true to the image of James Bond. The commercial
maintains the charm of James Bond. It also includes a lot of stunts that can
be immediately associated to James Bond. This succeeds in drawing the
attention and generating interest among the viewers.
The brand, VISA, is associated with sophistication and quality. With this
advertisement, they reinforce this image and add to it a certain panache
and “active” participation.
If the advertisement comes under any criticism at all, it is from a purely
logical standpoint. When Brosnan hands over his VISA card to the tuk tuk
driver, the driver returns with a new and better powered tuk tuk. However,
there are those who argue that anyone would have disappeared with the
card and spent all the money.
Nevertheless, for those who appreciate honesty, this advertisement

succeeds. The commercial generates good feelings in the minds of the
viewers. The product and brand are remembered. Additionally, the brand
image is improved and remembered.

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Advertisement 6
Surf Excel’s Advertisement
(Brother & Sister Duo)
Hindustan Unilever Limited introduced Surf in 1959, introducing the first

detergent powder into the country. At the time, housewives used laundry
soap bars to wash clothes. Surf offered them significantly better clean,
with much less effort. The promise of ‘superlative whiteness’ – the
articulation of a great clean at the time, connected with consumers and
helped to establish the brand. Surf was the first national detergent brand on
TV; the brand used TV to effectively educate their consumers on how to
use detergent powders in a bucket for a better wash.
Surf Excel made a big “splash” with their “Daag Achhe Hain” advertising
campaign. The following is an analysis of the first such commercial.
The advertisement features a brother and sister duo walking home from
school, when the little girl falls into a puddle of mud. Crying, she looks to
her brother for help. Her brother gets an idea and starts “beating up” the
puddle of mud, demanding an apology. After a time and a lot of mud on
his uniform, he stands up and says, “Sorry bola.” The narrator then
removes all apprehensions of dirt and stains and says, “Daag Acche Hain.”
This advertisement is universally well-loved. This is so because it does a
lot of things right. It makes use of children’s appeal to get the advertising
message across.
The advertisement does what seldom others do – cater to the emotions and
sentiments of the viewers – and succeeds with it. Not only do the children
lower your guard to the advertisement, but the story, too, warms the heart
of the viewers.
The advertisement generates a sense of bonding. Viewers without siblings,
too, can relate to the advertisement and the actions of the little boy. The
advertisement also exudes certain warmth that reflects itself in the viewers.
The advertising mantra, AIDA, is strictly adhered to. This is one of the
reasons for its success. By showing a little boy and girl, the advertisement
draws the attention of the viewers. When the little girl falls into the puddle
and starts to cry, it creates interest in the minds of the viewers. When the

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tagline is spouted, it builds, in the viewers, a desire to know more. This
desire often leads to action.
Although there is no obvious targeting, it is done so through indirect
means. Most mothers are concerned when their children come home in
dirty and messy clothes. This advertisement, not only sends out the
message that Surf Excel will help you was them out, but that also there is
no need to fear stains.
Although the advertisement does not centre on the product or brand, both
are remembered. The product and brand are subtly introduced to the
viewers such that it sub-consciously enters their minds without any jarring
highlights on the product or brand.
This advertisement also does what the majority do not. It focuses on the
people rather than the product. The sentiments, actions and emotions of the
people are highlighted and showcased throughout the advertisement in one
form or another. The product is kept discreetly tucked away and does not
overpower the commercial.
Although Surf Excel is a premium brand, this advertisement caters to all
the income grades and all classes of people, across age groups. The brand
and product are positioned as accessible to all people, whoever and
however they may be. The brand image created through this advertisement
is phenomenal.
The advertisement leaves people with a warm feeling. This feeling also
transfers to the product and brand. Thus, this advertisement can definitely
be called and advertising success.
TV Advertising
The best part of advertising on TV is that there is a market for almost any
product or service; you just need to know how to reach it. Whether you are
selling paint thinner, a circular saw, door stop, or block of cheese, with
proper marketing it will sell. What are they keys to successful
advertising? Obviously, you have to have a commercial that doesn't make
your viewers want to change the channel. Also, you need to think of who
your market is. For example, lets say you are selling a block of cheese.
Think to yourself who is going to be interested in good cheese. What time
of day? What channels? What show? Well, obviously it doesn't take an
expert to figure out that a cooking or food based channel might be a good
place to start. Perhaps a show that deals with low-carb food might be a
more specific area to look at. Time of day, is fairly irrelevant here so any

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time would do. If you are selling the circular saw, try Home and Garden
shows and channels or do-it-yourself shows.
Most companies look at television commercials as an advertising vehicle
for "the other guy." The corporate giant. The big business with lots of
disposable cash. In fact, TV is a very affordable medium that can increase
your company's profits greatly. Before you make an investment in
television advertising, there are certain key elements you need to consider.
Once you understand the process of writing, creating and producing a
commercial, you're ready to hit the airwaves. Effective TV
commercials merge video and audio into a powerful sales tool. But don't
think one is more important than the other. Audio and video go hand-in-
hand.
For example, turn down the volume on any commercial. You should be
able to identify the benefits of purchasing a product just from the video.
The same holds true for audio. Close your eyes and listen to the announcer.
If the audio doesn't explain the product in detail, then the commercial isn't
effective. Potential customers should be able to hear your message even if
they're not in the room to see it.
Always use a strong audio and video combination when creating your own
commercial. Use your audio to explain the advantages of owning your
product. You'd use words like "convenient, portable, lightweight."
However, there are no words more important than your call to action.
What do you want your viewer to do? Tell them to call now. Order now.
Visit their local dealer. Think of television as an intimate medium. If
you're advertising a restaurant, don't just use a shot of your building's
exterior. Use a close-up of your food in your commercial. And show
people eating your food. If you're producing a Public Service
Announcement(PSA) about drunk driving, don't just use a shot of a crowd
of people at a funeral. Show a tear streaming down a child's face.
Combining sight and sound should spark your viewers' emotions and help
them identify with your product. And if they can identify with your
product, you're more likely to get the sale!

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Advertising Success
Marketing and Advertising Success is like shooting a game of snooker....

No matter if you play snooker or not, this applies to everyone and their
quest for marketing success. Many people are constantly searching for "the
key" to success and in doing so miss out on the most important LESSON
of the search.
It is not about finding "the key". It is about learning. Learning and getting
better through practice. Think about it. When you play a game of pool (or
any game) - did you learn the game overnight? No. Did you learn the
game in a week? A month? A year? If you practice every day you might
get good enough to enter a few tournaments and maybe win a few here and
there. Practice more and you win more.
The funny thing about pool is similar it is to the search for success.
You must practice to get better. It is not about reading a book on how to
get better – you have to get out there and do it. There are a lot of mistakes
to be made in the process to become a better snooker player. Lots of
missed shots. Lots of bad shots that somehow go in. But you could never
repeat the exact shot because it was a fluke. Only through repetitive
practice do you get better and consistent. Then you find some areas of the
game you are better at. Maybe you are really good at the side pockets, or
maybe it is the bank shots. So you use those to your advantage and keep
trying to get better at the other areas of the game. Once you have gotten
good at the game - you never forget how to play another game. Sometimes,
you are just about to win the game but you scratch on the black ball.
How many times have you been so close to major success breakthrough
and something small distracts you and turns you off course? So what you
are searching for is not a key is a step you must take. And that step is
action.
You must be moving forward at all times, practicing and practicing the
skill you want to master. Only through practice will you ever become
successful. It will not happen overnight. It will not happen easily. You
must work at; find out what is right for you and what is wrong for you.

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Some things will work, and when you find them - keep at them. Those
things that don't work for you - practice at them. You will get better at
those areas if you practice. Think about each of these as a skill you need to
master before you can win tournaments: Sales skills, marketing,
advertising, time management goal setting follow up idea generation
partnerships delegation etc... So, stop your searching for that ever so
elusive key to marketing and advertising success when it is right in front of
you.
Having a poor response is not the medium's fault. Often the problem is the
message. Advertising is not a quick fix solution to marketing your
company or product. It takes planning, testing and constant exposure to
have an impact on your business. Done correctly, advertising can be a
winning strategy.

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Conclusion
The goal of advertising is to cost-effectively reach a large audience and

attract customers. If done correctly, advertising can enhance the success of
your business. Here are 10 advertising tips to pay attention to:
1. Go after your target audience: An advertising campaign should be
geared to your niche market. It is a common mistake to create generic
ads that do not speak the language or grab the attention of your
potential customers.
2. Use One Message: A high response rate ad usually conveys a single

message. NordicTrack's message of the "World's Best Aerobic
Exerciser" was simple and compelling. Your small business advertising
needs to quickly communicate its core message in 3 seconds or less. If
you are fearful and overwhelmed by technology, which computer book
do you buy? "DOS for Dummies" began a best-selling phenomena
because its message was easily understood and to the point.
3. Establish an image: You can recognize the McDonald's arches

while whizzing by on the highway. Likewise, there are plenty of
products that you recognize by their packaging or logo. Image counts
when it comes to advertising and promoting your business. Too many
advertisers do not work to build a consistent image.
4. Don't try to be everything to everyone: No product or service will

appeal to everyone. Many business owners, including corporate
executives, try to come up with ways to reach every market. Typically,
this does not work. It can spell disaster for small businesses, who
cannot afford to spread themselves too thin. Therefore, find your
market and be everything you can be to that audience.
5. Test your ads in advance: If you have the time or money to invest
in focus groups, you should test your ads on other people. Do they
understand and accept the message that you are trying to convey?
There are other less-expensive ways to test your ads as well:
questionnaires, for example.
6. Monitor your ads: It is very easy to ask new customers or clients

where they heard about you. As simple as this is, many entrepreneurs
do not bother to do so. It is advantageous to know which ads generate
business.
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7. Think outside the square: there are a variety of ways to get the
attention of your audience by standard (eg press ad) and creative (eg
spruiking in Rundle Mall) means.
8. Create Curiosity: Successful business advertising does not sell a

product or service. NordicTrack's ads sold the free video. Once a
potential customer watched the video, they contacted the company for
more information. The end result, millions of dollars of sales. Create
ads that generate interest and make the customer want more
information.
9. Keep your message simple: Ensure your call to action is clear.

What is the most important part you'd like your audience to read or hear
and how would you like them to respond? This should form the basis of
your ad/s in terms of content, look and feel.
10. Identify which advertising tool is best: For example, classified ads
fuel some businesses while others use flier distribution effectively. For
restaurants, local newspaper ads are effective because most restaurant
patrons live within a three- to five-mile radius.
6. Case study
Kurkure: Indian brand in the global market.
Indian consumer food habits are different from their counterparts in the
European and American markets. Add to this each Indian region itself has
special snacks. Snacks some time consumed along with meals or tea,
coffee and other beverages. Banana wafers, chaklis, samosas, namkeens
are few examples of large list of Indian snacks.
The change in the family structure is also changing the food habits in
India. Increase in the nuclear families and working women enhanced the
market potential of ready to eat products and branded snacks. Though the
Indian snack market is highly fragmented with market dominated by home
snacks or those sold by local vendors, changing consumer lifestyle and

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health concern made them to look for hygienic, easy to carry and nutritious
branded snacks
Biscuits, potato wafers and papads are already branded and well received
by the consumers. Pepsi, the late entrant in the Indian snack market
decided to find niche market. In the Year 1999, the company launched
Kurkure in the Indian Market. The product is developed in a way that it is
having local taste and western chips. Kurkure is big success in Indian
market. This made Pepsi to take this snack food to other global markets.
Kurkure is already available in the Indian stores in the US and UK and
Pepsi want to expand it to more stores in the existing global markets as
well as expand it to other potential markets. According to the company,
Kurkure will retain its basic flavor but will be adjusted to suit the local
requirements. Kurkure’s success in the Indian market is mainly for three
reasons namely innovative flavor, affordable price and continuous
communication to consumer. To meet the regional requirements Kurkure
is launched in various flavors like Masala, chilli, green chutney etc.
Kurkure started stiff competition from ITC another FMCG major. ITCs
Bingo is smash hit in the market. To meet the competition Kurkure
launched two more varieties Kurkure extreme chili and Kurkure neem.
Success of any brand depends upon its communication program. Kurkure
launched programs like Chala change ka chakkar in which consumer can
stay with brand ambassadors Juhi Chavla and Saif Ali Khan. Kurkure also
launched communication program Kurkure chai time achievers award in
which an interesting recipe will be chosen from the family and photograph
of that family will be put on one million Kurkure packs. Add to all this
Kurkure constantly gave theadvertisements in the television media.
Kurkure came out with novel ideas like branding the Indian trains like
Kurkure express which runs in the holiday season.
a. Explain the viability of market expansion strategy of Kurkure.
b. Critically analyzes the consumer behavior towards snacks products.
ANS:- A.
In India, the local fare offers a wide variety of snack options, ranging from
roasted banana wafers and soya chaklis (crispy savory spirals) to samosas
(pastries filled with potatoes/peas). These "namkeens" (snacks) are typically
eaten as a side dish with meals or make great accompaniments to tea, coffee, and
other beverages. Of course, these snacks vary by region, with each having its
own "special" recipe.
“[This Cheeto-like snack adapted to local tastes] helped create a bridge category
between Indian namkeens (snacks) and Western offerings like potato chips [and
cheese balls]”, says Deepika Warrier, Marketing Director, PepsiCo Holdings

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India.
Since its inception, this strangely addictive snack has been a huge success among
Indian consumers, with recent plans to take this locally developed snack food
brand global. While a soft launch has already been made, with the brand available
at Indian grocery stores in the US and UK, a large scale launch is on the agenda.
As Indra Nooyi, CEO of PepsiCo, mentions in an interview to rediff.com,
“Kurkure will retain its basic Indian flavor [in its overseas journey], but will be
tweaked a bit [in areas like seasonings] to suit the palate of international
consumers.”
So what has shaped Kurkure’s success in India so that even its parent company
wants a bite of it?
“Flavor innovations, affordable price points and an excellent customer connect

through a 360 degree communication approach has helped the brand enjoy iconic
brand salience in the snacks category,” observes an industry analyst.
Launched as a national brand, it was a challenge for the company to devise

flavors that would appeal to regional taste buds. However, the focus on
developing hot and tangy flavors that suit Indian taste palettes has helped win the
hearts of Indian consumers.
Bearing this in mind, the company launched pan-Indian flavors like Masala
Munch and Red Chili Chatka and local specialties like Tamatar Hyderabadi Style
and Green Chutney Rajasthani Style. The Kurkure flavors draw inspiration from
Indian spices and condiments and are available in six bold flavors.
In order to add further zing to its product portfolio, in January 2008, the company
launched Kurkure Xtreme, a limited edition variant in two flavors—Risky Chilli
and Electric Nimbu (lime). This was perhaps a move to outdo competition from
ITC’s snack brand Bingo, which was launched in March 2007, in Indianized
flavors like Tandoori Paneer Tikka (spiced cottage cheese) and Chatkila Nimbu
Achaar (tangy lime pickle).
Bingo’s success in the market is backed by ITC’s strong distribution network,

which allows it to stock its products in shops that previously did not sell snack
food. Additionally, ITC Foods provides shopkeepers with plastic molded shelves
that allow local vendors a convenient way to stock their product, and the company
benefits by increased visibility for its brand. Taking a cue from its competition,
Frito Lay India is focusing on unconventional retail points like cyber cafes and

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telephone booths, in order to increase brand visibility and product reach.
According to Warrier, “Bingo’s success has mirrored [Kurkure’s] strategy of

developing locally relevant flavor.” Despite the competition, Warrier feels that
the launch of Bingo has only helped grow the snack food category as a whole.
She is confident that Kurkure’s product appeal, developed over the years, will
allow the brand to continue to dominate the category.
Since snacking is mostly a hunger-driven impulse decision, staying fresh in the

consumer mind is very important. To maintain top of the mind recall among its
customers the brand has undertaken several unique communication initiatives.
The most recent, for example, is called "Chala Change ka Chakkar," which is an
umbrella campaign for Frito Lay India’s entire product portfolio (Lay’s, Kurkure,
Cheetos, Uncle Chipps, and Lehar). This promotion will allow chosen consumers
to live a day in the life of an Indian Bollywood celebrity (who are the brand
endorsers) like Juhi Chawla or Saif Ali Khan. The idea is to generate excitement
around the brand and have it stand out in the clutter of existing brands.
The brand has undertaken similar promotions in the past. For instance, in 2004 it
launched the "Kahani mein Kurkure" ("Crispiness in the Story") campaign, which
was a take on Indian popular culture. The advertising campaign spoofed popular
Indian TV shows like Jassi Jaissi Koi Nahin (Indian adaptation of American
sitcom "Ugly Betty") to appeal to Indian housewives, the largest target audience
to watch these programs.
In addition to targeting housewives, who play a significant role in making

purchase decisions, the brand appeals to the Indian family as a whole. The
"Kurkure Chai Time Achiever’s Award" was a contest launched by the brand
where families were invited to submit interesting recipes made with Kurkure. The
winning family would have the opportunity to be famous and have their
photograph featured on one million Kurkure packs.
This direct marketing campaign was supported through television advertising,

where Indian celebrity Juhi Chawla, Kurkure’s brand ambassador, announced the
winners of the competition. The contest was also publicized through the website
http://kurkure.co.in, specifically designed to promote the contest. Using the
website as a strategic tool for promotion helped the brand appeal to a young
audience that spends a considerable amount of time surfing the web.
Another novel branding initiative was a tie-up with South Western Railways in

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India to have trains called the "Kurkure Express." These were special trains that
operated only during the holiday season. The brand was featured on reservation
charts, coach indication slips, and during any announcements about the train. This
outdoor media was a unique way to target families who travel by train during the
holidays.
Answer B.
One of Frito-Lay’s hallmarks is continuously offering a wide variety of

innovative snack choices. While Lay’s Classic, Doritos Nacho Cheese and
Cheetos Crunchy are longtime favorites, company ’ve learned that consumers
want variety -- from new flavors of our original snacks to new brands and
healthier options. So, we often introduce new products.
As you might expect, not every snack sells equally well and not every new
product is successful. Decisions about what is available on store shelves varies
by location, depending on consumer interest, basically, what our consumers buy.
If a product does not sell well, it may be discontinued. And, because consumers
in different parts of the country have different flavor and snacking preferences,
some products are only available in certain areas.
For instance, Tostitos Light was recently discontinued because of very slow sales.
As a result, consumers have been sharing their disappointment with company.
It’s always a tough decision to discontinue a product or offer it in select locations,
since we know it’s a favorite for someone.
Company also often receive questions from consumers about where to buy a
specific Frito-Lay product. If you are looking for a specific product in your area,
you can search by your zip code using the “Product Locator” on
www.fritolay.com (“where to buy” link). It’s the same system we use to answer
questions when consumers call and e-mail us, asking where to find a specific
snack. company update the system weekly to provide consumers with the latest
information.
The Frito-Lay Web site has been designed to provide consumers with easy access
to some of the most common questions that my team answers everyday in
Consumer Affairs. If you can’t find the answer to your question, or have a
comment to share with company, company like to hear from you (click here to be
linked to our “Contact Us” form). Company will do their best to answer your
questions and concerns in a prompt manner. Whether positive or negative, the

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comments company hear from their consumers are invaluable to company and
are shared broadly within the company.

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Name: Falguni Pandit Registration No.

Marketing Management - MB0030

Registration No.: 520966021

Page No: 1 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

1.Analyze the existing business portfolio of

Page No: 2 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

Page No: 3 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

business so they should also generate large

Page No: 4 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

However if needed any attempt should be made to

4. Question Marks (= high growth, low market share)

question marks will simply absorb great amounts

Page No: 5 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

Page No: 6 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

strategy - portfolio analysis - ge matrix

The company must:

(1) Analyse its current business portfolio and decide which

(2) Develop growth strategies for adding new products and

The two best-known portfolio planning methods are the

The McKinsey / General Electric Matrix

Page No: 7 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

Factors that Affect Market Attractiveness

Page No: 8 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

Factors to consider include:

-Strength of assets and competencies

Ansoff's product / market matrix

The Ansoff Growth matrix is a tool that helps businesses

Ansoff’s product/market growth matrix suggests that a

Page No: 9 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

The output from the Ansoff product/market matrix is a

Market penetration is the name given to a growth strategy

Market penetration seeks to achieve four main objectives:

• Maintain or increase the market share of current products

• Secure dominance of growth markets

Page No: 10 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

• Increase usage by existing customers – for example by

Market development is the name given to a growth

There are many possible ways of approaching this strategy,

• New geographical markets; for example exporting the

• New product dimensions or packaging: for example

• New distribution channels

• Different pricing policies to attract different customers or

Product development is the name given to a growth

Page No: 11 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030

Diversification is the name given to the growth strategy

This is an inherently more risk strategy because the

For a business to adopt a diversification strategy, therefore,

2. Discuss the Macro environment of a

ANS. India has become an attractive destination for

Page No: 12 Name: Falguni Pandit |Registration No.:

Marketing Management - MB0030