BM Grade-12

1st Term (2019-20) Case study (Paper-1)

Position Map.
Questions

1. Draw a Position Map for RDB and its competitors, UAB and FIB. (line 20)
2. Examine which of the following promotional strategy would be beneficial for RDM: above the
line or below the line.
3. Suggest any three types of ICT tools that Anna can use. And explain the effectiveness of using
these tools for RDM’s external stakeholders.
4. Evaluate whether RDM should become a private limited company.
5. Evaluate whether RDM should form alliances with other ball bearing companies in China,
Brazil, India.
6. Prepare a PEST and a forcefield analysis to examine whether RDM should relocate and open
12 small factories around the world.

Definitions:
1. Market position:
This is an analytical tool that ranks the price and quality of different products, brands
or firms according to the views of the general public.
2. Market share:
This is a measure of the size of a business in comparison to others in the same
industry. It refers to an organisation’s proportion of the total value of
sales revenue expressed as a percentage of the total market value.
3. Unique selling point:
Also known as a unique selling proposition, this refers to any aspect of a product that
makes it stand out positively from other products on the market. Japanese ball bearing
manufacturers had a USP due to their flexibility by using just-in-time production
methods.
4. Brand loyalty:
This measures the degree to which customers consistently repurchase the same
brand of a product over time rather than buying from rival suppliers. Strong brand
loyalty exists when customers are committed to a certain brand and make repeat
purchases time and time again. Marketing strategies designed to cultivate loyal
customers can give organizations a competitive advantage.
5. Privately owned:
A privately owned company means that the business is a private limited company
(LTD), owned by private shareholders. As an LTD, the general public cannot buy or
sell shares in RDB on a stock exchange.

6. Location:
This refers to the geographical position of a business. The location decision is a
crucial one, and will depend on both quantitative and qualitative factors (such as Anna
Holstein wanting RDB’s new greener factories to be located closer to its growing
customer base in India, China and Brazil). The location decision is one of the most
important that any leader has to make, especially as it is often an irreversible decision.
Hence, the location of a business can have profound implications on the profitability
and survival of the firm
7. Research and development:
R&D refers to the activities that a business conducts with the intention of making
discoveries that can lead to commercial successes by adopting new processes and
procedures in the workplace and/or launching new products. R&D can help
businesses to gain competitive advantages (line 28), ensure business survival and help
them to expand their operations.
8. Brand awareness:
Brand awareness measures the extent to which potential customers or the general
public recognise a particular brand.
9. Market size:
The measure of the size of an industry. It is usually measured in terms of the value of
sales revenue from all the businesses in a particular industry, per time period.
10. Business to business:
B2B is a phrase often used in e-commerce, although in its broader sense it means
firms that can cater for the needs of the businesses. RDB operates in the B2B market,
as it supplies ball bearings to other businesses.
11. Internal organic growth:
Organic growth occurs when a business expands internally by using its own resources
to increase the size of its operations. For instance, RDB may have used a combination
of retained profits, loan capital and issuing of new shares to finance the mega
factories in Sweden and northern Germany.
12. Price: This refers to the value of a good or service that is paid by the customer. Price
will usually cover the costs of production, allowing the business to earn profit. RDB’s
prices are high due to the high quality of its ball bearings.
13. Promotion:
In marketing terms, promotion is a component of the marketing mix referring to the
marketing methods used to inform, persuade or remind people about a firm’s products
or brands. Examples of promotion used at RDB include advertising in trade journals
and promotional activities at trade shows.
14. Rebranding:
Rebranding is the marketing activity of creating any combination of a new name,
logo, symbol or design for an established brand. The purpose is to update or develop
a new brand identity. Rebranding is often used when a firm wants to change its
corporate image and/or due to a deliberate change in its business strategy.
15. Globalisation:
Globalization is the growing integration and interdependence of economic, social,
technical and cultural issues of the world’s economies, thereby making the
world a ‘smaller’ place. For example, the free movement of labour in regional
trading blocs and the presence of multinational corporations mean that RDB will
eventually see the end of a traditional ‘happy European family’ (line 167) in its
workplace.