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MARKS : 80
SUB: Marketing Management
N. B.: 1) Attempt
all four case studies
2) All questions carry equal marks.
CASE 1 : TRUST TOOTHPASTE
Study
the Case entitled "Positioning 'Trust' Toothpaste" and give your
specific recommendations regarding the action to be taken by the company. Your
decision must be based on a careful analysis of the situation given in the case
and your answer should be precise and up to the point.
Positioning
Trust' Toothpaste
In
September 1990, Mr. Sarin, the Marketing Manager of Deepa Products (P) Limited
was wondering what marketing and product positioning strategy the company
should follow for launching their two new brands of toothpaste. Trust Night and
Trust Regular in a market which was becoming highly competitive.
Deepa
Products (P) Ltd. was one of the successful manufacturers of various types of
packaging materials for both industrial and consumer products. Established in
1960, the company has shown substantial growth over the years. Much of the
company's growth was attributed to the high quality of its products and also
the systematic manner in which its marketing decisions were made.
In
1990, keeping in view the growing market for consumer goods, the top management
of the company decided to diversify into new consumer products areas. In the
first instance the company thought of entering into the toothpaste market.
Depending upon their success in the market, the company would decide their
expansion plans into other areas of consumer goods sector.
The
company chose to enter toothpaste market simply because the market for
toothpaste was growing fast almost by 15 to 20% in India and it provided enough profit
opportunities. The market was dominated only by a very few players. Further Mr.
Sarin felt that there was scope for capturing a significant market share in the
growing toothpaste market, since the company's products had some unique
features to meet the emerging new market segments.
Questions
1. What marketing strategy should be designed
by Mr. Sarin to be able to achieve the targeted 5% market share?
Answer: To successfully enter the highly competitive toothpaste market
and capture a 5% market share, Deepa Products must focus on the
following strategies:
A. Market
Segmentation and Targeting
- Demographic Segmentation:
- Trust Regular →
Target families and daily users.
- Trust Night →
Target
2. How should Deepa Products (P) Ltd.
position Trust Regular and Trust Night to induce customers to buy it? What
should be the key benefits of their toothpastes?
Answer: Trust Regular – Positioning Strategy
- Target Market:
Families and individuals looking for daily protection and freshness.
- Key Benefits:
- Fluoride protection for cavity prevention.
3. Should the company price its products
economically, or should it aim for premium pricing?
Answer: Option 1: Economy Pricing (Competitive Pricing Strategy)
- Pros:
- Easier to penetrate a competitive
market.
- Attracts price-sensitive customers.
- Cons:
- Lower profit margins.
- May struggle
CASE 2:
THE CATERPILLAR TRACTOR COMPANY
Caterpillar Tractor
Company (CTC) is a large manufacturing firm headquartered in Illinois, USA. Its familiar 'CAT" logo and
yellow paint are known throughout the world. Indeed in its business, CTC has an
estimated 37% of world market. Its closest rival, Japan's Komatsu has an estimated 15%.
A multinational company CTC has manufacturing and dealer representatives
throughout the world. The products, which the firm designs, manufactures and
markets, can be classified
into two basic segments:
Earth moving,
construction and materials handling equipment-track type tractors, bulldozers,
rippers, track and wheel type loaders, pipe layers, wheel dozers, compactors,
wheel scrapers off highway trucks and tractors, motor graders, hydraulic
excavators, long skidders, lift trucks and related parts and equipment.
Engines– for earth
moving and construction machines on highways trucks, marine, petroleum, agricultural,
industrial and electric
power generation systems. Engines either, diesel or natural gas, have power
ranges from 85 to 1600 horsepower or in generator set versions from 55 to 1200
kilowatts. Turbines range
from 10 to 7,900 kilowatts.
CTC's market
success is based to a great extent on its four-point product strategy. First,
advances technology is incorporated into machines so that users derive optimal
productivity and efficiency. To maintain the flow of product application the
organization commits hundreds of millions of dollars each year to research and
development. A second product guideline is quality. Within the last ten years
several billion dollars have been spent on plant and equipment to ensure
reliability in the hostile environments the machines endure.
The third aspect of product strategy is to offer a full line of products. This implies machines
capable of performing on job sites as small as a residential plot or as
large as the Alaskan product
line offers over 100 different machines within nearly infinite
option/modifications. The fourth and final principle of the product strategy is to design and
build only machines that can be produced on an assembly line, to take advantage
of manufacturing expertise and efficiency of Caterpillar plant and to provide
significant economies of scale.
Questions
to be answered
Question. 1. How
important is new product development to Caterpillar?
Answer: New product development (NPD) is critical
to Caterpillar’s success because:
- Maintaining Market Leadership: CTC holds 37% of the global market,
and to sustain this lead, continuous innovation is necessary.
- Meeting Evolving Customer Needs: Construction and industrial equipment
users demand higher
Question. 2. What
sources of new product ideas might a company like caterpillar use?
Answer: A company like CTC can gather new product
ideas from multiple sources:
A. Internal Sources
- Research & Development (R&D):
- Caterpillar invests hundreds of
millions of dollars annually in R&D.
- Engineers explore new materials,
automation, AI-driven diagnostics, and
Question. 3. Evaluate
CAT as a brand name.
Answer: The CAT brand is one of the most
recognizable industrial brands globally. It stands for:
|
Criteria |
Evaluation |
|
Brand Recognition |
The "CAT" logo and yellow color are instantly
identifiable worldwide. |
|
Reputation & Trust |
Known for durability, reliability, and high performance. |
Question. 4. Evaluate
each of the four points of CTC's strategy.
Answer: CTC’s four key product strategies have
played a significant role in its success. Let’s evaluate each:
1. Advanced Technology Integration
✅ Strengths:
CASE 3: ABC HANDLOOMS Ltd.
ABC Handlooms Ltd. (ABC) was established in the year 1991 to manufacture
and market handloom furnishings throughout the country. Over the years, it has
developed a wide network of handloom units in and around Delhi. ABC
manufactures a wide range of furnishings catering to the needs of different
strata of society. The pattern of sales of the company during the last three
years was as under:
|
State |
|
Percentage Sale |
|
Punjab Haryana U.P. M.P. Rajasthan Other states and Union territories |
|
65 5 10 10 5 5 100 |
The market for furnishings was highly competitive. ABC had not only to
face competition from well established houses but it had also to face competition
from various state government corporations. Besides, the product had to face competition with the imported
material, which was freely available.
Prices of different types of furnishings differed widely. Private and cooperative
channels marketed different brands. The Coops accounted for more than 60 per
cent of material sold. Though there was no brand loyalty yet a large
manufacturer in Western India was able to market similar products at a
marginal premium in Rajasthan and Madhya Pradesh.
Questions:
1. How do you explain the
present situation faced by the company?
Answer: ABC Handlooms Ltd.
is operating in a highly competitive market for handloom furnishings,
facing multiple challenges:
- Market Share Concentration:
- 65% of sales come from Punjab, meaning over-reliance
on one market.
- Other states contribute minimally,
leading to regional sales imbalance.
2. Was it a good idea to
enter into a three-year contract with the Cooperative Society?
Why?
Answer: Yes, it was a
good decision.
Reasons:
- Guaranteed Sales Volume:
- Cooperatives control 60% of the
market, and a contract ensures consistent demand.
- Reduced Marketing & Distribution
Costs:
- Partnering with cooperatives lowers
the need for direct marketing efforts.
- Brand
3. Is it possible to renew
the contract with the Cooperative Society? If so, how? Suggest a detailed
programme on a crash basis with the budget constraint of Rs. 50, 00, 000.
Answer: Yes, renewing
the contract is possible, but ABC must enhance its value proposition
for the cooperative.
Renewal Strategy:
ABC must address
cooperative concerns (cost,
CASE 4:
APEX ELECTRICAL COMPANY LTD.
Mr.
Nathan, Sales Manager of Apex Electrical Co. Ltd. had just received a
proposal from his Regional Manager at Bangalore for opening a sub-office in Madras and was considering what would be the
best decision in the company's short run as well as long run interest.
The company was in
the business of manufacturing and marketing electric motors of a wide range of horse power
that could be used as a prime mover
in numerous applications. The company's factory and head office were
situated in Bombay and it had its branch offices at New Delhi, Calcutta and Bangalore,
each headed by a Regional Manager.
The Regional Office
at Bangalore was responsible for sales in Karnataka,
Tamil Nadu and Kerala. The company also maintained a godown at
Bangalore which was used as the
stocking centre for feeding sales in the complete region. The company's
distribution network had grown over several years and as such there was no one rule by
which the arrangements could
be explained. In Karnataka, due to the proximity of the Regional Headquarters,
the distribution, network was closely controlled by the Regional
Office. Company had several dealers covering the State and they all
purchased goods directly from the Regional Office. All the dealers got a fixed percentage of discounts. The
ultimate prices to the consumers were fixed by the company. Each dealer covered
a specific area which was generally one to several districts and the company
discouraged one dealer interfering
in other's territory. However, in main cities of Bangalore and Mysore, there was more than one dealer who
collectively covered the sales in the city. The company salesmen regularly
contacted the dealers and the office
maintained good marketing information.
Questions:
1. What decision would you take if you
were in place of Mr. Nathan?
Answer: If I were in Mr. Nathan’s place, I would carefully evaluate the short-term
and long-term implications of opening a sub-office in Madras. The decision
should be based on factors such as market demand, operational costs, and
alignment with the company’s overall strategy. Here's a breakdown of the
key aspects I would consider:
Short-Term Considerations
2. Do you feel the proposal of a new
sub-office is economically justified against the stated policy of the company?
If yes, why? If no, then how could it be made justifiable?
Answer: The proposal for opening a sub-office in
Madras must be evaluated against the company’s economic policies and
existing distribution structure. Here’s a detailed analysis:
Yes, the Proposal is Economically Justified
The proposal may be
justified if certain conditions align:
Dear students, get fully solved assignments
by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed assignments available with 100% surety and refund)