Question Paper of MS-11: Corporate Policies & Practices Dec-2001

Q.1. Briefly explain McKinsey 7-s Framework. How can it be helpful in strategic management?

Q.2. “The role of BOD is to govern and not to manage.” Discuss the statement, bringing out the elements of corporate governance.

Q.3. Briefly explain the constituents of the micro environment of a business organisation, individually or collectively, improve industrial relations climate within and outside?

Q.4.(a) Explain the concept of “strategic choice” in relation to inventory items. What are its uses and limitations?

(b) What ratios, do you think, can be useful to strategic analysis? Illustrate your answer.

Q.5. Why is pre-implementation evaluation of strategy important? What check¬points would you like to use in the process of evaluation?

Q.6. Distinguish between “integration” and diversification. What are the pre¬requisites for success of conglomerate diversification? Explain.

Q.7. Read the following case study carefully and answer the questions given at the end.

THE CONVENTIONAL ROUTE

A. SETTING OBJECTIVES

Where do we want to go?

B. POSITION AUDIT

Where are we now?

C. ENVIRONMENTAL ANALYSIS

What is the future of the environment in which we operate?

D. GAP ANALYSIS

Ultimate Objectives Compared with Extrapolated Existing Performance

E. CORPORATE APPRAISAL

SWOT Analysis

F ESTABLISHING STRATEGY

What is the best way to get from B to A considering C, D and E?

A. Does the company have a core competence?

B. Does the core competence add value?

C. Is the core competence sustainable?

D. Is the company nurturing its core competencies?

Questions

1. How should Coolex evolve its strategy? Should it continue with the conventional approach, with its focus on the external environment, in the face of potential competition? Is there an alternative to the traditional approach to formulation?

2. Has Coolex been able to identify its “core competencies"? Is it feasible to link strategies planning at Coolex with its core competencies?

3. Are the managers at Coolex asking the right questions? What should be the road-map for Jagmohan and his team?

Question Paper of MS11: Corporate Policies & Practices Dec-2000

Q.1 What role does the Board of Directors (BOD) play in strategic management of a company? What kind of relationship may the BOD have with the top management of the company? Examine and discuss.

Explain the concept of corporate strategy. What kinds of people in a company are responsible for strategic decisions and their implementation? Is strategic planning the same as strategic management?

Q.2 Why is competitive analysis needed for as business enterprise? Explain how porter’s framework to
analyze industry structure can be helpful in competitive analysis. Explain the relevance of the model.

What criteria can be used for determining strengths and weaknesses of a corporate entity? What measures can be used for determining strengths and weaknesses? Discuss briefly.

Q.3 What is BCG’s Growth Share matrix? Construct a BCG matrix based on hypothetical data.

What role do costs play in different market conditions? How does this role change? Does Porter’s generic business strategy of cost leadership have nay relevance in this context?

Q.4 Distinguish between related and Unrelated diversifications. Examine the merits and demerits of each. What kind of trend, in this context, has been dissemble over the recent past?

It is often said that strategy implementation is much more difficult and challenging than the strategy formulation. Why is it so? What would you suggest to a company for effective implementation of strategies?

Q.5 Read the case study carefully and attempt the questions given at the end.

Questions

1 What do you identify as the basic issues/problems?

2 What strategy/strategies should Morro have to resolve the problem or meet the challenge posed?

Question Paper of MS-11: Corporate Policies & Practices June-2001

Q.1. Why should a company have Mission Statement? Discuss its role and functions. Give examples of mission statements in relation to any three of the following organisations:

(a) A corporate hospital in the private sector
(b) A specialised professional educational and training institution in the Government sector
© A technical and management consulting firm in the private sector
(d) A electric supply undertaking in the Government sector

Briefly explain 7-S Framework. In what way can the framework be helpful in strategic formulation and implementation?

Q.2. Enumerate the consistent of mega and micro environments of a business firm. How are the two types of environments interrelated? Illustrate your answer with suitable examples.

What are the different criteria for classifying organisational elements into strengths and weaknesses? Illustrate with suitable example. Are different criteria exclusive?

Q.3. In what ways do the BCG Matrix, GE Planning Grid, and Shell’s Directional Policy Matrix differ from each other? Explain how such portfolio matrices are helpful in strategy formulation.

Briefly explain and then discuss in which situations the following strategies would be useful:

(i) Turnaround strategy
(ii) Takeover strategy
(iii) Vertical Integration strategy

Q.4. Briefly discuss the elements of successful implementation of strategies. What checkpoints could you use in pre-implementation phase of a strategy?

What factors could cause corporate decline? What measures have been taken in India to deal with corporate/industrial sickness? Examine critically.

Q.5. Read the following case study carefully and answer the questions given at the end.

Questions

(a) Identify the environmental threats and opportunities and strengths and weaknesses of the organisation.

(b) Discuss those aspects of Pennzoil’s strategic choices to which you can apply the BCG matrix.

Question Paper of MS-11: Corporate Policies & Practices June-2000

Q.1. There are some managerially-derived expectations from the Board of Directors (BOD) of a company. What are these expectations ? Discuss and make a critical assessment of the role of the Board of Directors in the context of Indian corporate sector.

Q.2. What constitutes socio-cultural and political environment for a business enterprise? How do the trends in such environment impact upon a company? Illustrate with examples.

What is meant by ‘competitive advantage’? How can a company build competitive advantage? Explain giving suitable examples.

Q.3.. What is portfolio analysis in the context of strategic management? What considerations would guide you in balancing the portfolio?

Describe the techniques of strategic financial analysis and explain one of them in detail, pointing out its merits and demerits.

Q.4. What strategic options may a company have? Explain and also discuss the risks attached with each option.

Distinguish between backward and forward integrations. Pointing out the situations in which each would be advisable. Examine the merits and demerits of both types of integration.

Q.5. Read the case study carefully and attempt the questions given at the end.

Questions

(a) Is there a need for a strategy at Auto Components? Does a small company operating in a predictable environment need to formulate one?

(b) Can approaches to strategy be so conceptually different? Should Abhayankar go by gut-feel and, using in-house talent do what he believes is right for the company?

© Instead of spending time on documenting a strategy, shouldn’t Auto Components just have an informal plan of action, governed by the intuition of its senior managers?

(d) Since the company has a team which knows its business better than any consultant, why should Auto Components bank on external ideas? Should strategy ever be documented?

Question Paper of MS-11: Corporate Policies & Practices Dec-1999

Q.1 (a) Is there any difference between corporate objectives and corporate values?! What factors affect corporate values? Discuss briefly,

(b) What role could the Board of Directors play in the area of strategic management? Discuss.

Q.2(a) What is “competitive advantage"? Citing some real life examples, discuss how competitive advantage could be gained

(b) “The purpose of internal analysis is to match strengths and weakness* with opportunities and threats.” Explain.

Q.3(a) What factors cause Experience Curve Effect? Discuss briefly.

(b) Explain briefly the PIMS model portfolio analyses.

Q.4(a) How would you predict company failures? Discuss briefly any measurement model in this context.

(b) Differentiate between Concentric and Conglomerate diversifications, citing examples for each.

Q.5 Read the following case carefully and answer the questions indicated in the last paragraph of the case study.

Quesion Paper of MS-11: Corporate Policies & Practices June-1999

Q.l(a) What are the characteristics of Strategic Management Decisions? Differentiate between! Strategic Decisions and Operating Decisions,

(b) What is meant by “distinctive competence"? In what ways can a company attain distinctive competence?

Q.2(a) Discuss some tools (or frameworks) for analysing the impact of environmental opportunities pointing out their relative merits and shortcomings.

(b) Differentiate between the Economists and the Marketing viewpoints regarding the study of competition.

Q.3(a) Explain briefly Patel and Younger’s approach for assessing the strategic position of a company. In what way you think, is this approach an improvement over product portfolio matrices?

(b) What is ‘Synergy’? What could be the different types of synergies and how can they be brought about? Explain briefly.

Q.4(a) “Implementation of strategy requires right organisational structure.” Explain.

(b) A friend of yours bring to you a proposal for the acquisition of a medium scale company. How would you judge the suitability of the proposal?

Q.5 Read the following case carefully and answer the question indicated in the last paragraph of the case study.

Question Paper of MS-11: Corporate Policies & Practices Dec-1998

Q.1 (a) What are the various routes to building competitive advantage? Discuss them.

(b) Differentiate between the Grid Approach and the 7-S Framework for analysing strengths and weaknesses of a given corporate entity.

Q.2(a) Explain how at different stages in the life cycle of a product, business organisations need to adopt different strategies,

(b) What do you understand by the term Diversification? When is it resorted to? Explain relevance of the concept of core competencies while evolving diversification strategy and plans.

Q.3(a) “The success of a takeover, to a large extent, depends upon the post acquisition management.” Explain it with corporate experiences,

(b) What are the structural requirements for proper evaluation, control and updation of strategies?

Q.4(a) Do you agree with the suggestion that it is now imperative for al enterprises to evaluate global environments for their survival? If yes, why? I no, why not?

(b) Explain what do you understand by turnaround and list various types o: turnaround strategies. Discuss them briefly.

Q.5 Read the case study titled “Contrived Crises” and answer the questions given at the end.

Question Paper of MS-06 Market1ng For Managers Dec-2003

SECTION A

Q.1 (a) Discuss the role of 4Ps in formulating marketing strategies in the following situations:

(ii) Small sized car priced at Rs.2.00 lacs

(b) How would you apply your knowledge of Segmentation, Targeting and Positioning (STP) for

(ii) Soft drinks?

Question Paper of MS- 06 Marketing For Managers June- 2003

SECTION A

Q.1(a) What are the major reasons that have enabled the service sector in contributing 50% of GDP to Indian economy?

(b) What variables would you use in segmenting the Market for the following products and why?

(1) Credit card
(2) Sportswear

Question Paper of MS-06 Marketing For Managers Dec-2002

SECTION A

Q.1(a) Discuss the scope and relevance of the concept of market segmentation. Will the scope change with the opening of Indian economy? Illustrate- how firms would be benefited in marketing their products and services by segmentation.
(b) Briefly discuss the concept of positioning. What is the positioning of
(i) Santro Car
(ii) Indian Airlines
(iii) Pepsi Cola

Q. 2(a) Discuss the major considerations involved in designing the marketing organisation. Discuss by taking the example of a major importer of medical equipment, with all India operations.
(b) How is a “Product-Management Organisation” different from the Market-Centred Organisation?

Q. 3(a) Enumerate and discuss the major packaging decisions appropriate for the following:
(i) FMCG company
(ii) Consumer durable company
(b) Discuss the marketing strategies that may be used at the introductory and maturity stages of the product life cycle.

Q.4 Write notes on any three of the following:
(a) Institutional Buyer Behaviour
(b) Application of Marketing Research in decision making
© Relevance of studying post purchase behaviours
(d) Branding as a tool for market development
(e) Determinants of pricing

SECTION B

Q.5 Study the case given below and answer the questions given at the end. The Indian moulded-luggage market estimated at around Rs. 8,500 million per annum is largely dominated by the small and unorganised-sector units. In terms of volume, only about 15-18 per cent and in terms of value, 40-45 percent luggage sold every year is accounted for by the organised sector, where Blowplast Limited’s VIP brand is the market leader. After acquiring the Universal Luggage Company (Aristocrat brand) in 1988, Aristocrat and VIP together now account for a hefty 85 per cent share of the organised market, which was till the early 1990s growing at the low rate of 2-3 percent per annum. The growth rate refused to pick up inspite of VIP’S persistent efforts to expand the market by adding several new models to their range at regular intervals. Way back in 1981, VIP introduced a soft-luggage range, sub-branded as ‘Skybag’. It was aimed at the up market frequent traveller. But the product failed to take off because the soft-luggage concept was alien to the Indian consumer. The brand was also let down by imitators. For every piece of genuine Skybag sold, there were 40 fake pieces being sold by the unorganised sector. In 1986, the company launched another premium sub-brand ‘Odyssey’ made with a new ‘vacuum foaming’ technology, which gives a pseudo leather finish to the product. In spite of its steep price the brand was well received by the market. However, the success of1 one or two models was just not enough to give the required momentum for growth to a company of VIP’s size and stature. In the meantime, Aristocrat launched a frameless suitcase. The innovation reduced assembly time, and lowered the product weight and material cost resulting in significant reduction in the production cost. It enabled them to sell a 20 inch suitcase for about Rs. 200. Not to be left behind, VIP also launched its own frameless economy model ‘International Tourister’ aimed at the lower end of the market. But somehow, an up market brand name and the urban appeal of its ads did not match the middle-class consumer profile. The promotional efforts resulted only in further alienating the low-end buyer. The product fell flat and had to be withdrawn.

In 1988, the price war between VIP and Aristocrat ended rather dramatically with the buy-out of Universal Luggage by Blowplast. This was the most significant development on the market place, resulting in Blowplast’s virtual monopoly in the moulded-luggage market.

In 1989, another economy range named ‘Alfa’ was launched at the lower end of the market. It was even cheaper than the International Tourister brand and was basically aimed at competing with the unorganised sector products as a ‘loss leader’ brand of the firm. Alfa, as expected by the firm, brought large volumes to the company, and in 1994, contributed about half of VIP’s Rs. 2,700 million turnover; however, in terms of profits its contribution was very low. Second, the brand name and the features were as usual readily copied by the unorganised sector, resulting in several look-alike Alfas. Selling the Alfa was not a problem for VIP; the real problem was to increase the demand for those models which could bring a higher revenue to the firm.

In 1993, the company reworked their entire marketing strategy. It was at this stage that the firm started looking at the premium segment for growth. The Odyssey range, which was growing at the rate of 10-15 percent per annum as against. Against 2-3 per cent growth rate of the regular and the economy range, showed the way. A detailed study of each premium mode! was conducted to chalk out the strategy. In the global market soft luggage is the largest selling variety, but in India it failed to take off, probably due to improper positioning and inadequate promotion. The firm realized this mistake and started promoting it vigorously.

The revised focus ad greater stress on premium range yielded good results. The sale of Skybag range increased by 25 per cent in 1994. Under the Odyssey range, new models named ‘Lumina’ suitcases and ‘ZX’ briefcases were launched in March 1994. These sub-brands are reported to be growing now at the rate of 30 percent per annum.

Questions

1. Comment on the loss-leader pricing strategy followed by VIP in case of Alfa. Was the strategy in conformity with the company’s objectives?
2. Did the company accomplish the marketing objectives by adopting premium pricing strategy for “Odyssey"?

Question Paper of MS-06 Marketing For Managers June-2002

SECTION A

Q.1 (a) Discuss the factors that you would take into account in designing marketing organisation.
(b) As the marketing chief of a highly progressive herbal skin care company, poised to tap and penetrate the South Indian market, what kind of marketing organisation would you like to evolve?

Q. 2(a) Discuss in brief the various pricing strategies used by marketers. Suggest suitable pricing strategy for
(i) Standardized software package
(ii) Mid-sized passenger car
(b) Explain the concept of PLC and its utility for marketers.

Q.3(a) In an environment that’s getting increasingly competitive, channel partners are greatly influencing consumer buying decisions.
Do you agree with the above statement? Substantiate your response with suitable examples.
(b) Discuss the implications of new product development decision on the business enterprise.

Q. 4 Write short notes on any three of the following:
(i)STP strategies
(ii) Packaging as a pull strategy
(iii) Elements of promotion mix
(iv) Methods of sales forecasting
(v) Market research as a tool for decision making.

SECTION B

Q. 5 Read the case given below and answer the questions given at end:

Questions

1. How will you classify strategy examples given in the case? What are the common factors among all the successful strategies?
2. What advice will you give to Arun Kumar regarding the marketing strategy to be followed by his company?

Question Paper of MS-06 Marketing For Managers Dec-2001

SECTION A

Q.1(a) Describe the major reasons for the growth of service sector in India, giving suitable examples.
(b) Discuss the distinctive characteristics of services and explain their implications for effective marketing

Q.2(a) What are products and services that lend themselves better to psychographic segmentation than demographic, segmentation? Illustrate your answer.
(b) How would you segment your market for the following:
(i) Computer Training and Education
(ii) Laptop Computers

Q.3(a) Efficient and sound distribution system of a marketing firm is the hallmark of its core strength and competitive advantage in the marketplace. Explain picking up atleast two products of your choice where effective distribution system had largely contributed to their, success.
(b) “Maturity” stage of PLC is perceived as a crucial challenge faced by the marketer. What is your advice for the marketers to manage this challenge with a view to stretch the maturity stage? Explain taking two examples of your choice.

Q.4 Write notes on any three of the following:

(i) Elements of marketing mix
(ii) Secondary data and its limitations
(iii) Distinction between product innovation and product diversification
(iv) Advertising and publicity
(v) Role of marketing in Indian economy

SECTION B

Q.5 Read the case given below and answer the question given at the end.

Questions

1. What are the advantages and disadvantages of each proposal?
2. Which proposal, if any, should Mr. Ali recommend to the board of directors of the Indian Fruits Board?

Question Paper of MS-06 Marketing For Managers June- 2001

SECTION A

Q .1(a) What are the main characteristics that distinguish services from phys; products? How can tangibility be introduced into service products? Expli-with the help of examples.
(b) Imagine you are the manager of a ca: dealership selling a reputed brand, which is being established in a district headquarter with a population of approx. 4,00,000. What type of market research data and information would help you to compete more effectively?

Q.2 (a) What are the steps in the consumer decision making process? Do all consumer decisions involve these steps?
(b) Why is understanding the consumer post-purchase evaluation process important to marketers? How can marketers control cognitive dissonance?

Q.3(a)Why does the marketing mix change as the product moves through its life cycle? How would you expect the mix to change for an innovative home exercise kit as it moves through the product life cycle? (b) Are intermediaries and their functions necessary aspects of marketing channels? Give reasons to support your opinion.

Q.4 Distinguish between the following (attempt any three):
(a) Family brand and Individual brand
(b) Advertising and Publicity
© Full cost pricing and Marginal cost pricing
(d) Functional Organisation and Product Management Organisation
(e) Time-Series Analysis and Executive Judgement Method of Sales forecasting

SECTION B

Q.5 Study the case below and answer the questions given at the end.

Questions

(a) Explain the terms product-item, product-line and product mix in the context of the above situation.
(b) Advise the company in relation to its product mix. How will your recommendation affect the company’s image?

Question Paper of MS-06:Marketing For Managers Dec-2000

Q.1 (a) How do you explain the substantial increase in expenditures for services relative to expenditures for goods in the last few decades?

(b) How can market research help the manager of a service organisation? List examples for a hotel, airlines and hospital.

Q.2(a) Discuss the main objectives of sales promotion. Explain softie of the sales promotion methods directed at consumers, which can be used by detergent manufacturer.

(b) Discuss the role of personal selling and advertising in promoting industrial products. How does it compare to consumer product promotion?

Q.3(a) “Middlemen are parasites.” This charge has been made by many over the centuries. Is this likely to be the case in a competitive economic system? Why or why not?

(b) You are the marketing manager of a medium-sized manufacturing company. The president has just made the following statement; “The distribution activity is not a concern of the marketing department. The function of the marketing department is to sell the product …. let the rest of the company handle production and distribution.” How would you reply to this statement? Discuss whether you agree or disagree with the statement and justify your answer.

Q.4 Write short notes on any three of the following:

(a) Product Life Cycle
(b) Functions of Packaging
© Factors influencing consumer behaviour
(d) Applications of Marketing Research
(e) Recruitment and Selection of Salesmen

Q.5 Read the case given below and answer the questions given in the end.

B&G Shoprite Ltd. is a national manufacturer of a range of cosmetics and over-the-counter drugs. It has developed a good reputation in the industry supplying own-label cosmetic products and generic drugs direct to chemist convenience stores. This reputation has been achieved through close attention to quality, excellent service and conipetitive-pricing. The company is unknown outside the industry. It has never launched any product of its own into the consumer market. As a company, it works very closely with its retail customers and will develop products to their specification. Recently, the company has considered diversifying into men’s shaving products. The product would be bought |at similar outlets to its existing products and could be developed within the company’s existing research and development department.

The shaving product that the company has developed is a men’s shaving cream that is applied on the face, left for 5 minutes and then washed off. This process will not require any use of a razor. Initial research has shown that the product might appeal to people who are in the age band 18-30 year old, but no further detailed research has been carried out. The shaving product is revolutionary in that no such product is currently available on the men’s shaving market. Extensive tests have been carried out and no risk of harm is entailed in its use except for those men with sensitive skin. The company decides to develop this product as its own brand. The brand name is ‘A Close Shave’. The product is supplied in tubes or containers. It is priced at approximately double the price of existing shaving foams market, but no replacement razors will ever be required. It has been initially distributed through existing channels and not supermarkets because of likely price requirements. The launch of the product took place in the South and used prime-time television slots. The adverts emphasized the product was ‘manly enough for men’.

Despite rave reviews the product launch was a flop. The company achieved only 30% of its targeted sales in the first 3 months.

After consultation with its advertising agency, the company decided to commission more extensive research with 250 consumers in the targeted group. The responses can be summarised by the few quotes given below. ‘The shaving foam I use is manly enough for me.’ ‘I had to laugh at that advert. It wasn’t me at all.’ *I might use it but only it I was convinced it was not harmful to my face.’ ‘It’s a bit expensive. I wouldn’t pay that much for a shave.’ 4I like my dry shave and nothing will shift me from that.’

I can’t imagine any of my mates being seen putting a cream on like the idea but no I wouldn’t buy the product.

Question :-

(i) Highlight the importance of market segmentation for a branded product aimed at the consumer.
(ii) How might B&G Shoprite Ltd. consider segmenting the,maket for ‘A Close Shave’?
(iii) Identify some possible parameters by witch ‘A Close Shave’ might be positioned.

Question Paper of MS-06:Maketing For Managers Dec-2002

Q.1 (a) Discuss the scope and relevance of the concept of market segmentation.
Will the scope change with the opening of Indian economy? Illustrate- how firms would be benefited in marketing their products and services by segmentation.

(b) Briefly discuss the concept of positioning. What is the positioning of
(i) Santro Car
(ii) Indian Airlines
(iii) Pepsi Cola

Q.2(a) Discuss the major considerations involved in designing the marketing organisation. Discuss by taking the example of a major importer of medical equipment, with all India operations.
(b) How is a “Product-Management Organisation” different from the Market-Centred Organisation?

Q.3(a) Enumerate and discuss the major packaging decisions appropriate for the following:

(i) FMCG company
(ii) Consumer durable company

(b) Discuss the marketing strategies that may be used at the introductory and maturity stages of the product life cycle.

Q.4 Write notes on any three of the following:

(a) Institutional Buyer Behaviour
(b) Application of Marketing Research in decision making
© Relevance of studying post purchase behaviours
(d) Branding as a tool for market development
(e) Determinants of pricing

Q.5 Study the case given below and answer the questions given at the end. The Indian moulded-luggage market estimated at around Rs. 8,500 million per annum is largely dominated by the small and unorganised-sector units. ]n terms of volume, only about 15-18 per cent and in terms of value, 40-45 percent luggage sold every year is accounted for by the organised sector, where Blowplast Limited’s VIP brand is the market leader. After acquiring the Universal Luggage Company (Aristocrat brand) in 1988, Aristocrat and VIP together now account for a hefty 85 per cent share of the organised market, which was till the early 1990s growing at the low rate of 2-3 percent per annum. The growth rate refused to pick up inspite of VIP’S persistent efforts to expand the market by adding several new models to their range at regular intervals. Way back in 1981, VIP introduced a soft-luggage range, sub-branded as ‘Skybag’. It was aimed at the up market frequent traveller. But the product failed to take off because the soft-luggage concept was alien to the Indian consumer. The brand was also let down by imitators. For every piece of genuine Skybag sold, there were 40 fake pieces being sold by the unorganised sector. In 1986, the company launched another premium sub-brand ‘Odyssey’ made with a new ‘vacuum foaming’ technology, which gives a pseudo leather finish to the product. In spite of its steep price the brand was well received by the market. However, the success of1 one or two models was just not enough to give the required momentum for growth to a company of VIPJs size and stature. In the meantime, Aristocrat launched a frameless suitcase. The innovation reduced assembly time, and lowered the product weight and material cost resulting in significant reduction in the production cost. It enabled them to sell a 20 inch suitcase for about Rs. 200. Not to be left behind, VIP also launched its own frameless economy model ‘International Tourister’ aimed at the lower end of the market. But somehow, an up market brand name and the urban appeal of its ads did not match the middle-class consumer profile. The promotional efforts resulted only in further alienating the low-end buyer. The product fell flat and had to be withdrawn.

In 1988, the price war between VIP and Aristocrat ended rather dramatically with the buy-out of Universal Luggage by Blowplast. This was the most significant development on the market place, resulting in Blowplast’s virtual monopoly in the moulded-luggage market.

In 1989, another economy range named ‘Alfa’ was launched at the lower end of the market. It was even cheaper than the International Tourister brand and was basically aimed at competing with the unorganised sector products as a ‘loss leader’ brand of the firm. Alfa, as expected by the firm, brought large
volumes to the company, and in 1994, contributed about half of VIP’s Rs. 2,700 million turnover; however, in terms of profits its contribution was very low. Second, the brand name and the features were as usual readily copied by the unorganised sector, resulting in several look-alike Alfas. Selling the Alfa was not a problem for VIP; the real problem was to increase the demand for those models which could bring a higher revenue to the firm. In 1993, the company reworked their entire marketing strategy. It was at this stage that the firm started looking at the premium segment for growth. The Odyssey range, which was growing at the rate of 10-15 percent per annum as against. Against 2-3 per cent growth rate of the regular and the economy range, showed the way. A detailed study of each premium mode! was conducted to chalk out the strategy. In the global market soft luggage is the largest selling variety, but in India it failed to take off, probably due to improper positioning and inadequate promotion. The firm realized this mistake and started promoting it vigorously.

The revised focus ad greater stress on premium range yielded good results. The sale of Skybag range increased by 25 per cent in 1994. Under the Odyssey range, new models named ‘Lumina’ suitcases and ‘ZX’ briefcases were launched in March 1994. These sub-brands are reported to be growing now at the rate of 30 percent per annum..

Questions :-

1. Comment on the loss-leader pricing strategy followed by VIP in case of Alfa. Was the strategy in conformity with the company’s objectives?
2. Did the company accomplish the marketing objectives by adopting premium pricing strategy for “Odyssey"?

Question Paper of MS-06:Marketing For Managers June-2002

Q.I (a) Discuss the factors that you would take into account in designing marketing
organisation.

(b) As the marketing chief of a highly progressive herbal skin care company,poised to tap and penetrate the South Indian market, what kind of marketing organisation would you like to evolve?

Q.2(a) Discuss in brief the various pricing strategies used by marketers. Suggest suitable pricing strategy for:-

(i) Standardized software package
(ii) Mid-sized passenger car

(b) Explain the concept of PLC and its utility for marketers.

Q.3(a) In an environment that’s getting increasingly competitive, channel partners are greatly influencing consumer buying decisions.

Do you agree with the above statement? Substantiate your response with suitable examples.

(b) Discuss the implications of new product development decision on the business enterprise.

Q.4 Write short notes on any three of the following:

(i)STP strategies
(ii) Packaging as a pull strategy
(iii) Elements of promotion mix
(iv) Methods of sales forecasting
(v) Market research as a tool for decision making.

Q.5 Read the case given below and answer the questions given at end:

Nova Fashion Garments Private Limited

Mr Arun Kumar, the Managing Director of Nova Fashion Garments Pvt. Ltd was keen that his marketing executives should become more creaUve in their approach towards selling the company’s products. Mr. Jam had recently attended a seminar in Bombay where he was highly impressed by the speech of a top executive who underscored the need for strategic market orientation in order to complete successfully in the changing marketing environment in the country.

Nova Fashion Garments was a well-known manufacturer ot ready-made garments in India. Established in 1970, the company manufactured a wide line of products shirts, trousers, jackets, under garments, etc.

Specialising exclusively in gents wear, the company had a network of branches and dealers throughout the country.

Mr. Jain was of the opinion that the market potential for ready-made garments in India was quite substantial.
However the company faced several problems in increasing its market share, Firstly because of the high taxes, the price of the ready-made garments manufactured by the company had to be kept high. Secondly, the company also faced problems on account of fashion changes. Arun Kumar said, “Unlike in the past, fashions are changing very fast. New styles of shirts come and go so fast that it becomes difficult for a company like ours to avoid dead stocks in a particular style when a new style takes over. In spite of our best efforts, by the time the consumer trend is felt, substantial stocks of the earlier style are already in the pipeline. These kinds of rapid changes were not found in the past, it took several years for a particular fashion style to get out of the market and a new style to take over.”

Added to the above was the intensified competition in market. According to Jain “Till recently there were not very many manufacturers of ready-made shiri. But these days numerous brands have come into the market with equally good quality. The consumers have a wider choice. They look more for the designs and shades. Price is also important.”

“Buyers in the lower income groups were very price conscious and some manufacturers concentrate on low-price garments. This low pricing is possible by manufactures who pick up fabrics in old designs and intentionally make ’seconds’ shirts or brand it as export surplus.”

Mr Jain was anxious that his company should become a quality house known for its fair dealings. He wanted to establish the company’s name for its quality products. But he knew that it was not an easy task especially in the face of unhealthy competition that was fast growing in the domestic market. It was in this context, he was keen to discuss his views on strategic marketing with his. sales executives in the company. Before he could call the meeting of the executives the discuss the matter, he thought it would be better to collect strategy examples on the basis of the experience of other successful companies both in India and abroad. For this purpose, he took the help of a young management trainee in the company who went through several marketing books, journals and papers and presented the following examples:

Rolls Royce

Among automakers Roll Royce not only has the most distinctive automobiles but also the most unusual total product offering. Compared to other automobiles manufacturers, Rolls Royce makes very few cars - only 84,000 cars in 76 years. Only for models are available from Rolls Royce: the newest (and cheapest) mode selling at approximately $ 1,00,000. The most expensive one - Phantom VI limousine for about $2,50,000. Other than’the United Kingdom, California is Rolls Royce’s largest market: Rolls Royce b.uyers there include young recording artists, writers, well-established Hollywood stars, entrepreneurs, doctors, lawyers, farmers and ranchers. Rolls Royce automobiles are built by hand, and it can take as long as five months to build one. Although a new Rolls Royce gets only 10 to 13 miles per gallon, a unique product offering lets Rolls Roye dominate a very special niche in the automobile market.

Ponds

Ponds India Ltd., well-known Madras-based cosmetic manufacturer, challenged the market leader in soap industry by introducing a line of new brands of soaps. The dreamflower soap with its emphasis on perfume, Ponds Cold Cream Soap targeted for dry or winter skin and an expensive sandalwood soap were introduced as premium soap in the market by the company in 1984. The company undertook a promotion programme in a big way (it is estimated approximately Rs. 1.25 crores) to launch its new products. The advertising firmly linked the soaps with its other highly popular products. With its effective distribution and promotion efforts, the company was able to carve out a niche in the market within a short time after launching its new products.

Maggie Noodles

Maggie Noodles, for the first time brought the concept of convenient food within the reach of middle-class households in India. The product was easy to prepare. It was attractively packed. The company emphasized intensive distribution strategy backed-up by heavy advertising and promotion. The high pressure advertising campaign launch in print media and on TV was highly successful. The campaign sold the idea of a snack food and a quick meal with remarkable success.

Rasna

It is reported that Rasna manufactured by Pioma Industries commands over 80% of the Rs. 15 crores soft drink concentrate market. The success has been attributed to its very effective advertising campaign and distribution system. Rasna advertising campaign in addition to being exclusively focussed on taste, has economy and convenience of preparation which are the most important attributes of a soft drink concentrate.

Amul

Amul products were launched in the market by the Kaira District Cooperative Milk Producers’ Union Ltd. The Union chose ‘Amul’ as the brand name, a variant of “Amulya” which means “priceless” in Sanskrit. The product was initially advertised only on hoardings as the main medium. The ‘Utterly Butterly’ ad campaign soon became popular. In 1973 an Apex organisation was formed - Gujrat Cooperative Milk Marketing Federation Ltd. -which integrated the activities of district union to oversee the marketing of their dairy products. GCMMF set up a network of thousands of stockiest catering to over four lakhs retail outlets throughout India. GCMMF has invested nearly Rs. 100 crores in establishing a coid chain from Gujrat to the rest of the country. Products like butter, chocolates, cheese, etc., were transported over long distances in its 100 refrigerated vans and through its 39 C&F agents and 1,700 distributors. Few multinationals were able to compete with Amul in the Indian dairy market. Amul was successful in competing with multinationals even in relatively high-end product categories such as milk powder, infant foods, and chocolates where it managed to price its products competitively. Presently the GCMMF is planning to launch products like coffee, jams, tea, pickles and ketchup, taking advantage of its brand name ‘Amul’, though some experts doubted whether the cooperative would be able to successfully replicate the Anand pattern across the country, Santro
Hyundai sold its 50, 000th Santro within 350 days of its sales in the face of tough competition from Maruti, Daewoo and Tata Indica. Business Standard - Indica research pointed out that the outstanding success of Hyundai was because they redefined product strategy in the small-car segment, in addition to its celebrity and campaign with the famous cine star, Shah Rukh Khan, who personified a young and dynamic personality.

Bisleri

The aggressive campaign followed by Ramesh Chauhan, Chairman Aqua ‘Bisleri, enabled his company to gain 60% share of the mineral water market in India. For this, the company set up an effective distribution system almost similar to the one followed in the market for soft drinks. Further, an aggressive print an TV campaign backed by hoardings, point of sale material and catchy messages on the vehicles used for supply of water and the emphasis on “Bisleri is the only one that guarantees purity” made the product not only popular but also greatly helped to expand the total market for mineral water in India.

After going through all the above strategy examples, Mr. Arun kumar, the Managing Director of Nova Fashion Garments Pvt. Ltd., was wondering what general lessons he could draw on the basis of the experiences of other successful companies. He wanted to discuss with his executives what principles of strategy his company should follow in order to aggressively market its product and improve its position in the market.

Questions

1. How wili you classify strategy examples given in the case? What are the common factors among all the successful strategies?
2. What advice will you give to Arun Kumar regarding the marketing strategy to be followed by his company?

Question Paper of MS-06:Maketing For Managers Dec-2001

Q.I (a) Describe the major reasons for the growth of service sector in India, giving suitable examples.
(b) Discuss the distinctive characteristics of services and explain their implications for effective marketing

Q.2(a) What are products and services that lend themselves better to psychographic segmentation than demographic, segmentation? Illustrate your answer.

(b) How would you segment your market for the following:
(i) Computer Training and Education
(ii) Laptop Computers

Q.3(a) Efficient and sound distribution system of a marketing firm is the hallmark of its core strength and competitive advantage in the marketplace. Explain picking up atleast two products of your choice where effective distribution system had largely contributed to their, success.

(b) “Maturity” stage of PLC is perceived as a crucial challenge faced by the marketer. What is your advice for the marketers to manage this challenge with a view to stretch the maturity stage? Explain taking two examples of your choice.

Q.4 Write notes on any three of the following:

(i) Elements of marketing mix
(ii) Secondary data and its limitations
(iii) Distinction between product innovation and product diversification
(iv) Advertising and publicity
(v) Role of marketing in Indian economy

Q.5 Read the case given below and answer the question given at the end.

The product was right, its price was competitive and the overall demand for mangoes was increasing. How could Indian mangoes regain a reasonable share of the France market? Mr. Ali, the newly-appointed field sales manager for the RCB, was determined to come up with an answer. The RCB, a statutory marketing board with the official responsibility of marketing all Indian fruits and vegetables abroad, had been exporting mangoes to France for many years. But while the market had been growing at an annual rate of about 5%, the RCB’s sales there had been gradually declining. By the time Mr. Ali assumed his new post, they were running at an annual volume of about $1 million, which represented not even 1% of the total market. On the basis of the results to data, the RCB could look forward to seeing its sales to France continue to decrease, along with its market share.

The Agent’s Performance

The role of the RCB field sales manager in India is to establish and monitor sales channels and to support them with promotional expenditures allocated by the RCB. In 1970 Mr, Ali’s predecessor had appointed a Mr. Jackson as the exclusive sales agent in France. By that time India’s market share already had been slipping badly for several years, and the Board wanted the sales manager to do something about it. Mr. Jackson had expressed great enthusiasm for Indian mangoes, and the RCB had commissioned research using panels of consumers in tasting tests. This confirmed that on the basis of appearance and taste Indian mangoes were at least as acceptable as the Mexico, Somalia and Brazil mangoes, which between them held about 85% of the market. The landed prices of Indian mangoes were slightly below that of the competitive fruit, and yet Mr. Jackson had been unable to halt the decline in sales. By the time Mr. Ali arrived in France to assume his post, Mr. Jackson had held the agency for almost five years; his agency agreement was due for renewal in six months. It did not take Mr. Ali much time to decide to let the agreement lapse; in the meantime, he would investigate the possibilities of a better arrangement.

Mr. Ali’s Investigations

Most of Mr. Jackson’s sales had been made to importers and wholesalers who specialised in resale to the catering trade; restaurants and hotels served the Indian mangoes in salads or asjuice to their guests, and they were very happy with the quality and price. This marketing channel reached only a tiny proportion of the total market however, and Mr. Ali was determined to reach the housewife, whose purchases of whole fresh mangoes through supermarkets and specialist greengrocers accounted for some 80% of France’s consumption. He had frequently asked Mr. Jackson why it was not possible
to obtain a foothold in- trie mass markets, but had been put off by vague statements about the difficulty of reaching the buyers and the resistance to change which characterised large retail institutions’. Mr. Ali had visited a number of retail outlets himself; he had noticed the preponderance of the hree major suppliers, because their mangoes were clearly stamped ‘Jaffa’. Outspan’, Sunkist’.

Mr. Ali had also managed to visit the fruit buyers of two large supermarket chains. Both had been polite but discouraging; when Mr. Ali offered to stamp Indian mangoes with the name ‘Bombay’ which had been registered in France, they were not enthusiastic. They pointed out that a name in itself was not sufficient; it had to be known and preferred by the general public, and neither of the two buyers had any reason for wishing to obtain supplies from a new and unknown source even if the price was about 2% below the price of competitive mangoes The buyers pointed out ‘hat the three market leaders had increased their combined share of the markei very rapidly in recent years. All three brands were established and well known; some were more plentiful and of better quality in one season, and some in another, but between them they satisfied shoppers’ needs.

How to Reach the Public?

Mr. Ali realised that buyers such as these would only buy Indian mangoes if they believed that the public would want them. The problem was how to reach the public and to persuade them to try a new brand of mango when they appeared perfectly satisfied with their present supplies. Mr. Ali obtained some data on major advertising media in France. It was clear that even a modest nationwide campaign, which might do no more than make a proportion of the population aware of the ‘Bombay’ brand, would cost several hundred thousand dollars - far more than the Board would ever agree to spend under present circumstances. The Board allocated its promotional budget to individual overseas markets roughly in proportion to their share of total export sales. The office in France had been getting about $30,000 a year to spend on promotion (about 39% of sales) Mr. Ali’s predecessor has no trouble in using this up by entering one or two trade fairs each year and issuing some brochures about Indian mangoes - with no visible effect. From his talks with people at various levels of the trade, and from observing the promotional activities carried out by his competitors, Mr. Ali became convinced that the RCB would have to spend far more on promotion than it was now spending in order to make a significant national impact and increase its marked share. Mr. Ali was in dilemma. He felt that if he could spend more money on promotion he could sell more mangoes. But the RCB policy was to base promotional expenditures in each market on sales already made in previous years. Mr. Ali was able to show his directors that in terms of its potential sales, the France market deserved a higher share of the Board’s total promotional expenditure than it was presently getting. The Board could not possibly afford to put up hundreds of thousands of dollars for a national mass media campaign, but it did agree to allocate Mr. Ali an additional $3 0.000 a year for two years as an experiment, to prove whether or not increasing promotional expenditures would be justified by increased sales. Together with his regular allocation, this gave Mr. Ali a total of, $60,000 to spend on promotion in each of the next two years. The Board had agreed to double his promotional budget. To prove his case and justify further increases, Mr. Al.i would have to at least double his sales over the next two years.

Finding a Solution

Mr. Ali visited a number of potential agents, importers and distributors and asked them to suggest what they could for ‘Bombay’ mangoes and how they would suggest that the $60,000 should be spent in order to improve sales. He received a number of suggestions and after some study he eliminated all but four.

Four Possible Solutions

1. An Importer s Proposed Solution. An importer with depots at all the main fruit markers proposed that ‘Bombay’ mangoes should be promoted to the independent specialised greengrocers, who were responsible for about 50% of whole fresh mango sales ir» the country. This firm has excellent contacts with these shops throughout the country, and the director recommended that the $60,000 should be spent on? posters, stickers, shelf, shelf strips and printed plastic bags and for trade advertising. These could be produced in sufficient quantity for all the 35,000 shops in France and could be distributed to the shopkeepers through the wholesales from whom they would buy their mangoes. The promotional material would only be given to the retailers buying a minimum quantity of ‘Bombay’ mangoes. The budget would also allow for a limited advertising campaign irj trade journals to promote ‘Bombay’ mangoes to the shopkeepers. The importer offered to order $ 1,00,000 worth of mangoes if he was appointed and his promotional ideas were accepted. Further orders would depend on sales results,

2. A supermarket Chain’s Proposed Solution: The buyer for a chain of 500 supermarkets which was said to account for 2(1/2)% of French retail food sales, offered to stock and display ‘Bombay’ mangoes in every shop. He agreed to promote the mangoes for four weeks in the weekly full-page newspaper advertisements which appeared throughout Italia to announce special prices and new products on offer in the chain’s supermarkets. This promotion would be carried out provided RCB contributed $60,000 as their share of the promotional cost. The initial stocking order would amount to about $50,000 and if the mangoes sold successfully they would continue to be stocked. This offer depended on RCB contributing to the promotion, and the buyer also asked for exclusive rights to ‘Bombay’ mangoes in France.

3. A Regional Importer/Wholesaler’s Proposed Solution: The managing director of a small but growing regional fruit importer/wholesaler operating in north-east France offered to organise a regional promotion in his area. He argued that $60,000 a year was enough to make a heavy impact if spent on regional media alone. The region accounted for about 20% of the national market but a reasonable share of this market was better than the present performance. He estimated that, with promotion, India should be able to capture a 10% share of the market. The promotion would include advertising on regional television and newspapers, posters for shops and a simple competition for the general pubic and for retailers. This could only be entered by purchasers of’Bombay’ mangoes, and the first prizes would be free trips to India which was becoming a popular tourist area. The importer agreed to concentrate his sales force on ‘Bombay’ mangoes during the one-month promotional period. He also requested exclusive rights for ‘Bombay’ mangoes for his area, and said that if the promotion was a success he would be able to put RCB in touch with similar firms in other regions of France so that the promotion could be repeated elsewhere.

4.The Agent’s Proposed Solution: Mr. Jackson asked to be reappointed as agent when he heard of the increase in the promotional budget, and he suggested that the $60,000 should not be spent on promotion. He recommended that it should be spent in each of the two years on offering a 15% price discount to prospective new customers. He argued that a price reduction of this size would be bound to attract supermarket buyers, users and independent wholesalers and importers, since there was usually little more than 2 or 3% difference in the price of mangoes of similar quality. Once their customers had tried ‘ Bombay’ mangoes, they would insist on them, and the brand would be established in this way. After the $60,000 had been used up as discount of $1.2 million worth of mangoes, it would be discontinued and the trade would be forced by consumers to continue to buy at the full price.

The Choice Before Mr. Ah

Mr. Ali appreciated that the four proposals represented very different approaches to the marketing task. He was no sure which, if any, to choose or whether he should devise some other combination of techniques.

Questions :-

1. What are the advantages and disadvantages of each proposal?
2. Which proposal, if any, should Mr. Ali recommend to the board of directors of the Indian Fruits Board?

Question Paper of MS-06 Marketing For Managers Dec-2001

SECTION A

Q.1(a) Describe the major reasons for the growth of service sector in India, giving suitable examples.
(b) Discuss the distinctive characteristics of services and explain their implications for effective marketing

Q.2(a) What are products and services that lend themselves better to psychographic segmentation than demographic, segmentation? Illustrate your answer.
(b) How would you segment your market for the following:
(i) Computer Training and Education
(ii) Laptop Computers

Q.3(a) Efficient and sound distribution system of a marketing firm is the hallmark of its core strength and competitive advantage in the marketplace. Explain picking up atleast two products of your choice where effective distribution system had largely contributed to their, success.
(b) “Maturity” stage of PLC is perceived as a crucial challenge faced by the marketer. What is your advice for the marketers to manage this challenge with a view to stretch the maturity stage? Explain taking two examples of your choice.

Q.4 Write notes on any three of the following:

(i) Elements of marketing mix
(ii) Secondary data and its limitations
(iii) Distinction between product innovation and product diversification
(iv) Advertising and publicity
(v) Role of marketing in Indian economy

SECTION B

Q.5 Read the case given below and answer the question given at the end.

Case Study

The product was right, its price was competitive and the overall demand for mangoes was increasing. How could Indian mangoes regain a reasonable share of the France market? Mr. Ali, the newly-appointed field sales manager for the RCB, was determined to come up with an answer. The RCB, a statutory marketing board with the official responsibility of marketing all Indian fruits and vegetables abroad, had been exporting mangoes to France for many years. But while the market had been growing at an annual rate of about 5%, the RCB’s sales there had been gradually declining. By the time Mr. Ali assumed his new post, they were running at an annual volume of about $1 million, which represented not even 1% of the total market. On the basis of the results to data, the RCB could look forward to seeing its sales to France continue to decrease, along with its market share.

The Agent’s Performance

The role of the RCB field sales manager in India is to establish and monitor sales channels and to support them with promotional expenditures allocated by the RCB. In 1970 Mr. Ali’s predecessor had appointed a Mr. Jackson as the exclusive sales agent in France. By that time India’s market share already had been slipping badly for several years, and the Board wanted the sales manager to do something about it. Mr. Jackson had expressed great enthusiasm for Indian mangoes, and the RCB had commissioned research using panels of consumers in tasting tests. This confirmed that on the basis of appearance and taste Indian mangoes were at least as acceptable as the Mexico, Somalia and Brazil mangoes, which between them held about 85% of the market. The landed prices of Indian mangoes were slightly below that of the competitive fruit, and yet Mr. Jackson had been unable to halt the decline in sales. By the time Mr. Ali arrived in France to assume his post, Mr. Jackson had held the agency for almost five years; his agency agreement was due for renewal in six months. It did not take Mr. Ali much time to decide to let the agreement lapse; in the meantime, he would investigate the possibilities of a better arrangement.

Mr. Ali’s Investigations

Most of Mr. Jackson’s sales had been made to importers and wholesalers who specialised in resale to the catering trade; restaurants and hotels served the Indian mangoes in salads or as juice to their guests, and they were very happy with the quality and price. This marketing channel reached only a tiny proportion of the total market however, and Mr. Ali was determined to reach the housewife, whose purchases of whole fresh mangoes through supermarkets and specialist greengrocers accounted for some 80% of France’s consumption. He had frequently asked Mr. Jackson why it was not possible to obtain a foothold in- trie mass markets, but had been put off by vague statements about the difficulty of reaching the buyers and the resistance to change which characterised large retail institutions’. Mr. Ali had visited a number of retail outlets himself; he had noticed the preponderance of the three major suppliers, because their mangoes were clearly stamped ‘Jaffa’. Outspan’, Sunkist’.

Mr. Ali had also managed to visit the fruit buyers of two large supermarket chains. Both had been polite but discouraging; when Mr. Ali offered to stamp Indian mangoes with the name ‘Bombay’ which had been registered in France, they were not enthusiastic. They pointed out that a name in itself was not sufficient; it had to be known and preferred by the general public, and neither of the two buyers had any reason for wishing to obtain supplies from a new and unknown source even if the price was about 2% below the price of competitive mangoes The buyers pointed out ‘hat the three market leaders had increased their combined share of the market very rapidly in recent years. All three brands were established and well known; some were more plentiful and of better quality in one season, and some in another, but between them they satisfied shoppers’ needs.

How to Reach the Public?

Mr. Ali realised that buyers such as these would only buy Indian mangoes if they believed that the public would want them. The problem was how to reach the public and to persuade them to try a new brand of mango when they appeared perfectly satisfied with their present supplies. Mr. Ali obtained some data on major advertising media in France. It was clear that even a modest nationwide campaign, which might do no more than make a proportion of the population aware of the ‘Bombay’ brand, would cost several hundred thousand dollars - far more than the Board would ever agree to spend under present circumstances. The Board allocated its promotional budget to individual overseas markets roughly in proportion to their share of total export sales. The office in France had been getting about $30,000 a year to spend on promotion (about 39% of sales) Mr. Ali’s predecessor has no trouble in using this up by entering one or two trade fairs each year and issuing some brochures about Indian mangoes - with no visible effect. From his talks with people at various levels of the trade, and from observing the promotional activities carried out by his competitors, Mr. Ali became convinced that the RCB would have to spend far more on promotion than it was now spending in order to make a significant national impact and increase its marked share. Mr. Ali was in dilemma. He felt that if he could spend more money on promotion he could sell more mangoes. But the RCB policy was to base promotional expenditures in each market on sales already made in previous years. Mr. Ali was able to show his directors that in terms of its potential sales, the France market deserved a higher share of the Board’s total promotional expenditure than it was presently getting. The Board could not possibly afford to put up hundreds of thousands of dollars for a national mass media campaign, but it did agree to allocate Mr. Ali an additional $3 0.000 a year for two years as an experiment, to prove whether or not increasing promotional expenditures would be justified by increased sales. Together with his regular allocation, this gave Mr. Ali a total of, $60,000 to spend on promotion in each of the next two years. The Board had agreed to double his promotional budget. To prove his case and justify further increases, Mr. Ali would have to at least double his sales over the next two years.

Finding a Solution

Mr. Ali visited a number of potential agents, importers and distributors and asked them to suggest what they could for ‘Bombay’ mangoes and how they would suggest that the $60,000 should be spent in order to improve sales. He received a number of suggestions and after some study he eliminated all but four.

Four Possible Solutions

1. An Importer s Proposed Solution. An importer with depots at all the main fruit markers proposed that ‘Bombay’ mangoes should be promoted to the independent specialised greengrocers, who were responsible for about 50% of whole fresh mango sales in the country. This firm has excellent contacts with these shops throughout the country, and the director recommended that the $60,000 should be spent on? posters, stickers, shelf, shelf strips and printed plastic bags and for trade advertising. These could be produced in sufficient quantity for all the 35,000 shops in France and could be distributed to the shopkeepers through the wholesales from whom they would buy their mangoes. The promotional material would only be given to the retailers buying a minimum quantity of ‘Bombay’ mangoes. The budget would also allow for a limited advertising campaign in trade journals to promote ‘Bombay’ mangoes to the shopkeepers. The importer offered to order $ 1,00,000 worth of mangoes if he was appointed and his promotional ideas were accepted. Further orders would depend on sales results,

2. A supermarket Chain’s Proposed Solution: The buyer for a chain of 500 supermarkets which was said to account for 2(1/2)% of French retail food sales, offered to stock and display ‘Bombay’ mangoes in every shop. He agreed to promote the mangoes for four weeks in the weekly full-page newspaper advertisements which appeared throughout Italia to announce special prices and new products on offer in the chain’s supermarkets. This promotion would be carried out provided RCB contributed $60,000 as their share of the promotional cost. The initial stocking order would amount to about $50,000 and if the mangoes sold successfully they would continue to be stocked. This offer depended on RCB contributing to the promotion, and the buyer also asked for exclusive rights to ‘Bombay’ mangoes in France.

3. A Regional Importer/Wholesaler’s Proposed Solution: The managing director of a small but growing regional fruit importer/wholesaler operating in north-east France offered to organise a regional promotion in his area. He argued that $60,000 a year was enough to make a heavy impact if spent on regional media alone. The region accounted for about 20% of the national market but a reasonable share of this market was better than the present performance. He estimated that, with promotion, India should be able to capture a 10% share of the market. The promotion would include advertising on regional television and newspapers, posters for shops and a simple competition for the general pubic and for retailers. This could only be entered by purchasers of ‘Bombay’ mangoes, and the first prizes would be free trips to India which was becoming a popular tourist area. The importer agreed to concentrate his sales force on ‘Bombay’ mangoes during the one-month promotional period. He also requested exclusive rights for ‘Bombay’ mangoes for his area, and said that if the promotion was a success he would be able to put RCB in touch with similar firms in other regions of France so that the promotion could be repeated elsewhere.

The Agent’s Proposed Solution: Mr. Jackson asked to be reappointed as agent when he heard of the increase in the promotional budget, and he suggested that the $60,000 should not be spent on promotion. He recommended that it should be spent in each of the two years on offering a 15% price discount to prospective new customers. He argued that a price reduction of this size would be bound to attract supermarket buyers, users and independent wholesalers and importers, since there was usually little more than 2 or 3% difference in the price of mangoes of similar quality. Once their customers had tried ‘ Bombay’ mangoes, they would insist on them, and the brand would be established in this way. After the $60,000 had been used up as discount of $1.2 million worth of mangoes, it would be discontinued and the trade would be forced by consumers to continue to buy at the full price.

The Choice Before Mr. Ali

Mr. Ali appreciated that the four proposals represented very different approaches to the marketing task. He was no sure which, if any, to choose or whether he should devise some other combination of techniques.

Questions

1. What are the advantages and disadvantages of each proposal?
2. Which proposal, if any, should Mr. Ali recommend to the board of directors of the Indian Fruits Board?

Question Paper of MS-06:Marketing For Managers June-2001

Q.l(a) What are the main characteristics that distinguish services from phys; products? How can tangibility be introduced into service products? Expli-with the help of examples.

(b) Imagine you are the manager of a ca: dealership selling a reputed brand, which is being established in a district headquarter with a population of approx. 4,00,000. What type of market research data and information would help you to compete more effectively?

Q.2(a) What are the steps in the consumer decision making process? Do all consumer decisions involve these steps?

(b) Why is understanding the consumer post-purchase evaluation process important to marketers? How can marketers control cognitive dissonance?

Q.3(a) Why does the marketing mix change as the product moves through its life cycle? How would you expect the mix to change for an innovative home exercise kit as it moves through the product life cycle?
(b) Are intermediaries and their functions necessary aspects of marketing channels? Give reasons to support your opinion.

Q.4 Distinguish between the following (attempt any three):

(a) Family brand and Individual brand
(b) Advertising and Publicity
© Full cost pricing and Marginal cost pricing
(d) Functional Organisation and Product Management Organisation
(e) Time-Series Analysis and Executive Judgement Method of Sales forecasting

Q.5 Study the case below and answer the questions given at the end.

Fine Furnishings Limited is a small chain of distributors of good-quality office fiimiture, carpets, shelfs and filling cabinets. Within each category, the companV offers a wide variety of products, with a great many variations of each product being offered. For example, the company currently offers some 42 different designs of chairs and 23 varieties of office desks. The Company keeps in touch with advances made in the office furniture field worldwide and introduces those products which are in keeping with the needs of the market in terms of design, workmanship, value for money and technical"specifications. Fine Furnishings trades only in good quality furniture which is sturdily constructed. Differences between its products and cheaper, lower quality ones are well known to those who have several years of experience in the business.
An important feature, the company feels, is the availability of a complete list of components of the furniture system. This enables customers to add bits and pieces of matching designs and colour in the future. Such components are available for sale separately. Systems are maintained in stock by the company for a number of years, and spare parts for chairs and other furniture are always available.

The trade is currently witnessing a downtrend due to the recession. Fine Furnishings has also experienced the same over the past two years. In addition, it had to trim its profit margins. Last year, it barely broke even and this year it is heading for a’small loss for the first time in the company’s twenty-year history.

Questions :-

(a) Explain the terms product-item, product-line and product mix in the context of the above situation.
(b) Advise the company in relation to its product mix. How will your recommendation affect the company’s image?

Question Paper of MS-06:Marketing For Managers June-2000

Q.1 (a) “We live in an age in which services are becoming increasingly important.” Explain. Is the trend towards spending more of our incomes for services likely to continue? Why or why not?

(b) Discuss the characteristics that distinguish services from goods. What implications do these services create for the marketing function?

Q.2 Discuss the relationship between product differentiation market segmentation and product positioning. How, as a new entrant in the market, would you position the following products and why?

(a) Salt
(b) Chocolates

Q.3(a) What are the various stages in the buyer decision process? Explain with the help of examples.
(b) Explain cognitive dissonance. If you were a marketer of consumer durables, what ways would you use to reduce dissonance in buying decisions?

Q.4 Evaluate the roles of’Personal Selling’ and ‘Sales Promotion’ for any two of the following products. What reasons support their use as a major or minor component of the communication process?

(a) Personal Computers
(b) Detergents
© Aircraft guidance systems

Q.5 Write short notes on any three of the following:

(a) Product life cycle
(b) Sales forecasting
© Direct distribution
(d) New product development process

Q.6 Read the para given below and attempt the questions given at the end.

‘The Marketing Environment’

M/s XYZ is U.S. based multinational firm with worldwide sales of over $ 10 billion. Its business is divided up into these sectors: Pharmaceuticals, speciality chemicals, man-made fibres, plastics and consumer products sold through wholesalers and retailers. The spread of sales is approximately :

Region %

North America 30
Western Europe 20
Eastern Europe 10
Asia 20
Rest of the World 20

Questions:-

1. List the environmental factors which you think would be most likely to affect M/s XYZ’s future. Do these vary according to which part of the business is being examined?
2. What information would you want to analyse in order to assess their situation in each of their markets?