p


 
Present a case study on the company shown for the group. The
case study should not exceed 10 slides. Evaluate each case on
the following:
 Mission and Vision statements
 Values of the company
 Present organisation¶s position
 Core competencies
 Corporate objectives
 Distinctive capabilities
 Growth vector
 Competitive advantages and synergy
 Understanding of customer value
 Effective differentiation

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 p

 
uection A
Group 1 Hindalco
Group 2 Jet Airways
Group 3 NTPC
Group 4 ONGC
Group 5 Ranbaxy Laboratories
Group 6 uuzlon Energy
Group 7 Tata Power
Group 8 Videocon Industries
Group 9 Yes Bank
Group 10 Zee Enterprises

^ ^
 The need for a
new perspective
in understanding
Marketing

£
 º 

  




*e have understood Marketing through ³the
customer cum 4P framework,´ holding customer
satisfaction as the theme of marketing and the 4P
as its toolkit. But what is that the firm provides to
the customer that brings about the satisfaction?

Ñ
 

 


´ails to deliver targeted top and bottom lines

ÿ

 
  


Hindustan Unilever absorbed higher raw material expenses to
sustain volume growth in the quarter ended December, 2010.
At 11.6%, the growth in its net sales was lower than the 13%
rise in volumes on a year-on-year basis. Advertising spends
were up by 17% but the operating margins slid from 13% to
8% for soaps and detergents business which accounts for
43% of total net sales.

D
 

 


´ails to help the firm avoid price wars

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´ails to achieve effective differentiation

‰
 

 


´ails to graduate from Tactical to utrategic
Marketing
It is expected that the marketing team should
be strong in strategic marketing which
traverses beyond advertising, promotion and
pricing and understands and exploits the
power of radical value innovation and value
delivery.

·

 º 

Nokia is the largest seller of mobile phones in India.

*hen local player after local player was launching
cheap handsets and dual-uIM phones, Nokia
scoffed at them and their price strategy. Now two
years later, it is doing the same thing with a sense
of urgency. In the second quarter of 2010, Nokia¶s
market share dropped to 36% from 54%.

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´ails to retain customers

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*hy should everyone pay
for advertising?

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Motorola stumbled badly in the Indian cell phone

market. The company tried to sell outdated models
assuming that India is a backward market. Nokia on
the other hand, launched state-of-the-art products
for the Indian customers.

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´ails to protect customers against
value-eroding outsourcing

|Ñ
 

 


´ails to grasp that abundance of
choice does not help

|ÿ
* 


  
How is it possible when the marketing has been
stressing customer orientation/customer
satisfaction?

|D
 *



*hat is meant by value in the marketing context?
*hat are the various facets of value?
*herefrom and how does the value arise?
How can the firm approach the value delivery job?

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 *



The utility plus several things he looks for, together
constitute benefits, also called ³bundle of
benefits.´ This bundle of benefits is the carrier of
value to him.

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The customer reckons only some of those benefits
that really matter to him. This is what is called
³customer value.´ Not all the benefits shown by the
firm but the benefits that really contribute to
customer value.

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The total weightage/credits, the customer assigns to a given
product offer, indicates the ³Total Customer Value.´

The cost includes the price of the product plus the other
elements, called the ³Total Customer Cost.´

The buyer derives satisfaction when the value

exceeds the cost. The larger the value-cost gap, the
greater is the satisfaction.

^


 
  
The present plight of GM serves as a powerful
illustration of the travails a business firm has to go
through, once it failed to give the due importance to
value delivery.
*hy should the icon of American industrial
supremacy land in this plight? *hat would have
been better had GM resorted to value-focused
marketing?

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