Postgraduate Diploma in Marketing

June 2012 Examination

Specimen Paper

Driving Brands for Results

Date: ** ** ****

Time: 1400 Hrs 1700 Hrs Duration: Three (03) Hrs

Total marks for this paper is 100 marks. There are two parts in this question paper.

All questions in Part One are compulsory. It includes a mini case.

Part Two includes 6 questions. Answer 03 questions from this part.

Instructions to candidates

1 State your Registration Number on the front cover of the answer book and on
each and every additional paper attached to it. Your name must not appear
anywhere in the answer book or answer scripts.
2. Always start answering a question on a new page.
3. You are reminded that answers should not be written in pencil or red pen except
in drawing diagrams.
4. Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5. Illegible hand writing and language errors will be penalised.
 PART ONE

Answer all questions

Question 01: Case study

DAMRO: Reach the globe with furniture

Established in 1986, Damro has come a long way from its humble beginnings. Its
current vision is to be among the world's largest furniture manufacturers offering a
diverse range of modern and traditional furniture. It has expansion plans for over 150
Showrooms globally, while already there are over 50 showrooms in India alone.

According to Damro, their basic success depends on the ability to produce high
quality furniture at affordable prices with outstanding customer service. The driving
force behind Damro Furniture Pvt. Ltd., Mr. Damitha Ramanayake hails from a
remote part of the Western Province of Sri Lanka. He stepped into to the furniture
business 30 years ago. From the beginning, he drove Damro to be different from
other furniture manufacturers of Sri Lanka, making Damro an affordable but durable
furniture manufacturer, rather than targeting luxury customized furniture. Damros
cost driven strategy of furniture manufacturing demands for economies of scale in
furniture manufacturing with simple low cost designs. Damro was capable of
delivering a higher level of customer service from their state of the art outlets both
locally and overseas.

Damro was able to cut down its raw material and operational cost to a great extent by
using locally available raw material and low priced timber and locating the mass
scale factory in Nittambuwa a remote part of the Western Province of Sri Lanka.

Once they expanded their outlets locally and after Damro became a household brand
during the last twenty years, they began their international operations by starting an
outlet and franchise operation in Chennai, India. This operation expanded so rapidly
that within few years, it expanded to Karnataka, Andhra Pradesh and other southern
and northern states of India. With more than 50 showrooms and more than 1000
franchises, operations have also expanded to Australia and Damro is aiming high for
their future and plans to expand to the Far East as well.

Product Range

Damro produces both household as well as office furniture. The household furniture
line comprise of real wood as well as plastic furniture ranging from plain plastic chairs
to glamorous sofas , beds and dressing tables. Office furniture line has also
expanded to various designs and varieties to suit both local and overseas furniture
markets. Damro also made a strategic move by entering into electronic goods (white
goods) manufacturing with the start of their new washing machine factory in Sri
Lanka. Also very recently Damro entered into metal safe manufacturing.

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Challenges

The Furniture market in South Asia is enjoying growth. With the immense economic
development and expansion of urban middle class in India and the sub continent
demand for furniture seems to be increasing. But furniture manufacturers like Damro
which basically compete on a cost driven strategy have a disadvantage when
entering into the high value branded furniture market which is dominated by
customized furniture manufacturers. The Damro brand is still not able to reach this
upper middle class market and most of the upper middle class consider Damro as a
cheaper and low quality option of furniture. This image does not sufficiently fit with
the new rich and middle class demands of Asia.

Also at the international level, a larger furniture manufacturer like IKEA (worlds
largest furniture brand) is yet to enter into many Asian markets. Once they penetrate
the market it will be an immense challenge for companies like Damro who have been
enjoying considerable market share due to their price leadership.

I. Conduct a Brand Audit for Damro and make an audit report covering following
areas:
a. Brand features and benefits
b. Brand personality
c. Brand value and vision
d. Brand positioning
(20 marks)

II. Explain how brand extension and brand stretching is using by Damro and
suggest future directions for them on the same.

(20 marks)

(Total 40 Marks)

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 PART TWO

Answer a total of 3 (three) questions from this part

Question 02

a. In Sri Lankan Retail Marketing Own Label Branding has become increasingly
popular and sometimes threatens the well established manufacturer brands.
provide at least three (03) examples for own label brands in Sri Lanka and
explain why they have become popular in recent years.
(10 marks)

b. Explain how economic recession affects the Brand Loyalty of customers.

(10 marks)

(Total 20 Marks)

Question 03

The growth of the Services Economy in Sri Lanka made Services Branding
prominent within the country. Especially Telecommunication emerged as a
major industry with a multiple number of prominent and high value services
brands.

a. Explain how Services Brands differentiate from Product (FMCG) Branding

with relevant local examples.
(10 marks)
b. Explain how Extended Marketing Mix is used in service branding with
relevant examples.
(10 marks)

(Total 20 Marks)

Question 04

a. What is Brand Identity? Explain with relevant examples.

(10 marks)

b. Using the Component Model of Brand Identity explain how Brand Identity
forms among different stakeholders.
(10 marks)

(Total 20 Marks)

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Question 05

a. List the necessary skills and traits needed by a brand manager.

(5 marks)

b. A Brand Manager in modern business organization has expanded their

horizons in many ways. They perform multiple functions within their role.
Explain what are the main functions performed by modern brand managers
and how these functions are important for them to make their brand a
success in the market.
(15 marks)

(Total 20 Marks)

Question 06

a. Explain how brands are managed over their life cycle with relevant examples.

(10 marks)

b. Most of the successful brands of the world rejuvenate or revitalize their

brands by adjusting themselves to the market changes. List the main steps of
revitalizing process in branding.
(10 marks)

(Total 20 Marks)

Question 07

a. Explain the difference between cost driven and value driven brands using
relevant examples.
(10 marks)

b. Most of the worlds best brands sustain their competitive advantages through
the generations. Explain how they sustain their competitive advantage with
relevant examples.
(10 marks)

(Total 20 Marks)

(Total 60 Marks)

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