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Marketing Management
Jun 2026 Examination
Q1.
EcoClean, a startup specializing in environmentally friendly home cleaning
products, has limited capital but aims to disrupt a crowded market dominated by
large multinational brands. Through segmentation analysis, EcoClean has
identified a small yet growing community of health-conscious urban millennials
who value green initiatives and are highly active on social media. The founders
are debating how best to deploy their limited resources for maximum impact,
especially given the challenges of achieving scale against established
competitors. Apply the concepts of concentrated and micromarketing strategies
to EcoClean's situation. Which targeting approach should EcoClean prioritize to
achieve rapid market traction within its constraints, and how can the company
implement this choice to build a loyal customer base? (10 Marks)
Ans
1.
Introduction
Marketing strategy for a resource-constrained startup
demands a fundamentally different logic than for a multinational brand. While
companies like Unilever and P&G rely on broad, undifferentiated campaigns
supported by massive budgets, a startup like EcoClean must choose segments
where it can dominate rather than simply compete. The fundamental choice
EcoClean faces is between concentrated marketing, which focuses all resources on
a single clearly defined segment, and micromarketing, which customizes
offerings at an individual or hyperlocal level. Understanding how each strategy
works and choosing the right combination is the decision that will most
determine
Ø
Q2
(A). A global beverage brand like Coca-Cola has introduced healthier drink
options in response to health concerns and regulations, while continuing to
sell its traditional sugary beverages. Evaluate whether the company should
emphasize its healthier portfolio or protect its traditional core brand
identity. Justify your answer. (5 Marks)
Ans
2(A).
Introduction
Coca-Cola is among the most recognized brands in the
world, built over more than a century on the emotional identity of a refreshing
and indulgent beverage. However, rising health consciousness among consumers,
government-imposed sugar taxes in multiple markets, and regulatory pressure on
high-sugar products have forced the company to expand its portfolio
significantly. The question of whether to emphasize the healthier portfolio or
protect the classic brand identity is not a binary choice
Q2
(B). A fashion retailer plans to enter eco-friendly athletic wear using its
established brand name. While the marketing team sees brand equity benefits,
others fear dilution of the core fashion brand. Evaluate whether the retailer
should use a direct brand extension, introduce a sub-brand, or avoid the
extension. Justify your answer. (5 Marks)
Ans
2(B).
Introduction
Brand extension is a growth strategy where a firm uses
its existing brand name to enter a new product category. It offers the
advantage of reduced launch marketing cost and immediate consumer recognition,
but it carries the risk of brand dilution if the new category is not closely
aligned with the parent brand's core identity and perceived competence. For a
fashion retailer entering eco-friendly athletic wear, the strategic choice
among direct extension, sub-brand, or complete
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