MarketingManagementII Page1of5 IMT143

Subject Code: IMT-143

Subject Name : Marketing Management - II

INSTRUCTION
a. Write answers in your own words as far as possible and refrain from copying from the text
books/handouts.
b. Answers of I
st
Set (Part-A), II
nd
Set (Part-B), III
rd
Set (Part C) and Set-IV (Case Study) must be sent
together.
c. Mail the answer sheets alongwith the copy of assignments for evaluation & return.
d. Only hand written assignments shall be accepted.
A. First Set of Assignments: 5 Questions, each question carries 1 marks.
B. Second Set of Assignments: 5 Questions, each question carries 1 marks.
C. Third Set of Assignments: 5 Questions, each question carries 1 marks. Confine your answers
to 150 to 200 Words.
D. Forth Set of Assignments: Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

ASSIGNMENTS
FIRST SET OF ASSIGNMENTS Assignment-I = 5 Marks
PART A

1. Whatisprice?Explainthedifferencesbetweenvaluebasedpricingandcostbasedpricing
2. Explainmarketskimmingandmarketpenetrationpricingstrategies.Whywouldamarketerof
innovativehightechproductschoosemarketskimmingratherthanmarketpenetration?
3. Explainhowchannelmembersaddvalueformanufacturersandconsumers?
4. Whatisretailconvergence?Hasitbenefitedsmallretailer?
5. Listandbrieflydescribethefivemajorpromotionmixes.

MarketingManagementII Page2of5 IMT143

SECOND SET OF ASSIGNMENTS Assignment-II = 5 Marks

PART B

1. Nameanddescribethecommonmethodsforsettingpromotionbudget.
2. Describethevariousappealsusedinmarketingcommunicationsmessagesanddevelopthree
differentadvertisementsforthesamebrandofaproductofyourchoice,eachusingadifferent
appeal.
3. Describethetermsreach,frequencyandimpactwithexamplesfromTV,Radio,printand
electronicmedia
4. DiscussthetoolsusedinPublicRelations.CanwefixtheboundariesofPRtomarketing
departmentonly?
5. Discusstheroleofpersonalsellinginthepromotionmix.Inwhatsituationsisitmoreeffective
thanadvertising?

THIRD SET OF ASSIGNMENTS Assignment-II = 5 Marks
PART C

1. Explainthewaysinwhichcompaniescanconductonlinemarketing
2. Discussthebenefitsofdirectmarketingtobothbuyersandsellers.
3. Discuss various methods of entering global markets? Which method would you suggest for a
midsizeIndianMNCsellingtechnologyrelatedproducts?
4. WhatstepsshouldaCEOtaketomakehiscompanycustomerfocused?
5. Explain,whatdoyoumeanbymarketingaudit?
FOURTH SET OF ASSIGNMENTS Assignment-IV = 2.5 Each Case Study
CASE STUDY - I

TitanIndustries

The nations timekeeper, Titan Industries, is hoping to add 40 more exclusive brand outlets (EBOs) by
theendofthisfiscalyear,inthecountry,toaddtoitscurrentnumberof350.Italsoplanstoopen75
smallerformatEBOsinTierIIIandIVtownsinthecomingyear.
According to Rajan Amba, Global Marketing Head, Titan Industries, the company has allocated 20 per
cent of its Advertising and Promotion Plan (A&P) budget to strengthen the companys World of Titan
chain. This includes our investments in Below the line activities to generate footfalls, advertising for
newstoresandproductlaunches,newfixtures,andvisualmerchandising,hesays.
Last year, according to Amba, the watches divisiongrew at nearly 22 per cent. The CAGR for the Titan
brand has been in the region of 15 per cent over the last four years. The sixmonthly turnover of the
MarketingManagementII Page3of5 IMT143

watches division stands at nearly Rs. 835 crore, a growth of 14 per cent over last years half yearly
results.
Meanwhile,thefocusonmultibrandoutletsisequallyimportantforthecompany.
Apart from the four core brands, Sonata (lowend), Fastrack (youth), Titan (midsegment), and Xylys
(premium), Titan has also launched several subbrands such as Nebula, EDGE, Raga (women), Zoop
(children),andHeritage.
Thisyear,Titanhashadthreekeynewlaunches,priortothefestiveseasonRagaCities,Edge2012and
Tagged.WhiletheRagaCitiescollectionisinspiredbytwooftheworldsmostromanticcitiesParis
and Venice, and are priced between Rs. 2,400 and Rs. 12,000, the collection comprises of 31 new
contemporary designs studded with Swarovski crystals, mother of pearl dials and unique metal straps.
Edge2012,isclaimedtobethelightestwatcheverandispricedbetweenRs.12,000andRs.15,000.
Tagged, meanwhile is targeted at the working youth segment and is priced between Rs. 1,400 and Rs.
4,000.Everyyear,Titanlaunchesmanynewcollectionstargetedatdifferentsegmentsacrossourwide
consumer audience. This, over the past five to six years, has been our key growth driver for both
businessandbrandimage,saysAmba.
HeenvisionswatchesaboveRs.5,000,etailing,andtheproliferationoftheEBOchannelasthegrowth
driversforbrandTitannextyear.
The company recently announced that it will soon launch an integrated ecommerce platform for its
different product offerings. The company currently earns Rs. 1520 crore from online purchases on its
diverseproductsites.
With close to 15 subbrands under the umbrella and having a closely overlapping target audience and
price variations, there exists a possibility of mixed brand messages. Can this lead to a dilution of the
brand identity itself? Ramanujam Sridhar, Founder CEO, BrandComm is of the opinion that any brand
whichhasbeenthereforalongperiodoftimerunstheriskofbeingseenandtaggedasaslightlyolder
brandandthatisoneofthebiggestchallengesthatthebrandisfacing.
He feels that unlike the times when HMT was a sitting duck and Titan could make the most of it, the
marketcompositionhaschanged.BrandslikeCitizenwhichhadmesseduptheirIndiaentry,havenow
sorted out their act and almost every brand that is out there Omega, Rolex, Fossil, Tag Heuer is
available in the market. Titan is a great brand. But, a period of25 years is fairly long, particularly in a
category likefashion andlifestyle, since thecompanyhas positionedthe watch as afashion accessory.
Thisisachallengingcategory,saysSridhar.
AccordingtoSridhar,therearetwokeychallengesbeforeTitanwhatwiththecompanyexpandingthe
market,increasingitsshare,andbeingtheonlyprofitablewatchmakeraround.Hishypothesisisthatthe
brandhaslostitsaspirationalqualityforyounger,sophisticatedaudiencesinthe2534yearsagegroup.
Thebrandstillhasagreatfollowinginsmallertownsandintheoldersegments,andingiftingincertain
segments.Butthebrandsprofileisgettingslightlydated.
MarketingManagementII Page4of5 IMT143

Sridhar got his first first Titan watch in 1987 when he was young and upwardly mobile. Today, he
aspires to own an Omega, a Rolex, or a Tag Heuer. Titan no longer remains an aspirational brand for
peopleofmysocioeconomicgroup,headds.
TheotherchallengeistheTitancorporatebrandissufferingandisbeingseenasamereproductbrand
even as brandslikeTanishq, Titan Eye+,Fastrack, Sonata are part ofthe same corporate brand. Whilst
Titanisagreatbrandtoconsumers,employees,andinvestors,itisbeingseenmerelyasawatchbrand.
Meanwhile, Kaustav Das, EVPSouth, Publicis Ambience, feels that Titan seems to have ignored the
Sonata learning, that loyal consumers are almost puritanical in their expectations from the brand. To
theconsumer,SonatafromTitanisthesameasTitanSonata,hence,adilutionofthepremiumvalue
Titancommands,hesays.
He is of the opinion that with launches across the board in pricing and design philosophies, the brand
haslostitequity.IwouldntbesurprisedifanequitystudyrevealsthatTitanisnowsynonymouswith
Indian watch Brand of International quality and nothing beyond. Thats purely functional and hence
detrimental to Titan the brand, he adds. Interestingly, this is exactly what Titan challenged a quarter
centurybacktobecomethemostcovetedwatchBrandinIndia.
Answerthefollowingquestions
1. WhatarethemarketsegmentsTitanisoperatingin?Doyouthinktheycancompeteinall
thesesegments?
2. ExamineandcriticallyanalyzeTitanspricingstrategy.

CASE STUDY-II
Kukure:Handlingthechallenge

Chutkure, Hurhure, Chulhule, Karkare, Taktake all may be crunchy, but not Kurkure.Feeling the heat
from a sea of lookalike local and regional brands that have been munching on the popularity
ofKurkureover the last few years, beverages and snacks major PepsiCo has finally decided to fight
back.

ThelatestTVcommercialofPepsiCo'sflagshipsaltysnackbrandKurkureasksviewers:Kuchbhicrunchy
milegatohkhaogekya?(Willyoueatanythingthatiscrunchy?).Theadvertisement,pushingRs5packof
Kurkure,endsbysaying'5Rupayemeinkoikhaanewaalicheezkhao.'

However, PepsiCo says desi brands are an irritant, but definitely not a headache. "There are over 140
lookalikesofKurkure,"saysNalinSood,categorydirector,IndiaSnacks,PepsiCoIndiaFoods,"andover
2,500localplayersinthissegment."Butwearenotfeelingtheheatfromthem,heavers.

MarketingManagementII Page5of5 IMT143

TheRs5 price point is an impulse category where

consumers are not emotionally attached to the brand,
pointsoutSood."Ourlatestadvertisementnotonlyhits
at local brands but also tries to inculcate brand loyalty
among consumers for this low price point," he says,
explainingthetriggerforthelatestcommercial.

But marketing and branding experts disagree. The fact

that PepsiCo for the first time is urging consumers to
makeaninformedchoicewhilebuyingsnackssaysitall.

"Unarguably, Kurkure is feeling the heat from local

brands that are near lookalikes," says Smitha Sarma
Ranganathan, a brand communication specialist who
teaches marketing management at IBS Bangalore.

Instead of targeting some unknown brand in the

commercial, the company should have continued with
its focus on creating a familydriven context for
connecting with Kurkure wherein the brand becomes
thesnackycontentofchoice,sheadds."Consumerslook
forvalueformoneyandnotloyaltyatRs5pricepoint."

HEATISON
PepsiCo's Kurkure and Lay's, which dominate the Rs
9,500crore Indian snacks market, have been steadily
losingmarketsharetoaslewofregionalplayerssuchasGujaratbasedBalaji,Indore'sYellowDiamond
and DFM Foods' Crax that have cracked the local market as well as matched global players on pricing,
qualityandregionalization.
Whilethemarketshareofboththebrandsslipped23%intheAprilSeptemberperiodlastyear,Balaji,
Parle,YellowDiamondandITC'sBingogained,accordingtoNielsendata.However,PepsiCo'sSoodsays
themarketshareofKurkureisintact.
1. Howwouldyouratecompaniespromotions?Suggestsomechanges/additionstothe
mentionedpromotionsforthebrand.
2. Whatstrategywouldyousuggesttotheorganizationinthecurrentsituation?How
counterfeitingcanbehandledviarightmixofpromotions?