summary of class held on 17th nov

This was a dual session with back to back classes for the first time in marketing .

The discussion took off with examples of multiplexes in India( which are 900 in number out 12000 theaters but contribute a revenue of 75 % from these theatres) and also the example of facebook coming up with its email address i.e @facebook.com. These pointed out towards the "target marketing " and also emphasised that not only sustainability and measurablility but also insights to the target marketing are necessary.

The SEC grid was discussed with the emphasis on the various dimensions in it as well as the importance of each one.


BCG matrix:





Where a company in the question mark zone would try and move into the star by using a marketing strategy (which generally could be attack) . An example give was micromax.The companies in the star zone are the ones which have to have a clear understanding of the industry , example for this was MAGGIE . The companies in the cash cow zone try to go into the star . If the related product segment grow and the company can diversify itself , this may or may not work for certain companies . Which was exemplified by Amul which was able to capture the growing markets of related products of milk and there are VCR , National which were unable to do so. The Dog is the one which has low relative market share as well as low growth rate. It aims to reach star zone which is known as the "diagonal approach ".

Our facilitator expects each one us to be in position to give atleast 20 examples for each zone and also to refer the marketing white book by business world ( which is available in the library).

Recap of 11th Nov Session

Carrying forward the Segmentation Discussion:-

Deficacy of Loyalty Cards

Loyalty programs:-These are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially of benefit to the firm.

Various Loyalty Cards

In marketing generally and in retailing more specifically, a loyalty card, rewards card, points card, advantage card, or club card is a plastic or paper card, visually similar to a credit card or debit card, that identifies the card holder as a member in a loyalty program. Loyalty cards are a system of the loyalty business model. In the United Kingdom it is typically called a loyalty card, in Canada a rewards card or a points card, and in the United States either a discount card, a club card or a rewards card. Cards typically have a barcode or magstripe that can be easily scanned, and some are even chip cards. Small keyring cards (also known as keytags) which serve as key fobs are often used for convenience in carrying and ease of access.

A retail establishment or a retail group may issue a loyalty card to a consumer who can then use it as a form of identification when dealing with that retailer. By presenting the card, the purchaser is typically entitled to either a discount on the current purchase, or an allotment of points that can be used for future purchases. Hence, the card is the visible means of implementing a type of what economists call a two-part tariff.

The card issuer requests or requires customers seeking the issuance of a loyalty card to provide a usually minimal amount of identifying or demographic data, such as name and address. Application forms usually entail agreements by the store concerning customer privacy, typically non-disclosure (by the store) of non-aggregate data about customers. The store — one might expect — uses aggregate data internally (and sometimes externally) as part of its marketing research. These cards can be used to determine, for example, a given customer's favorite brand of beer, or whether she is a vegetarian.

Where a customer has provided sufficient identifying information, the loyalty card may also be used to access such information to expedite verification during receipt of cheques or dispensing of medical prescription preparations, or for other membership privileges (e.g., access to a club lounge in airports, using a frequent flyer card).

United States
In the U.S., several major supermarket chains and at least one major pharmacy require the cards in order for customers to receive the advertised loyalty price. These include Smith's, Kroger and Safeway (each through both their own name and many of their regional chain names), Albertsons, Winn-Dixie, Harris Teeter, Ingles, Giant Eagle, Tops, and CVS/pharmacy. Cards from other, even competing chains will generally work at other stores to receive the advertised loyalty price, because only a few companies make the cards, but stores generally will not allow this since it will not allow a customer to be tracked, though a customer can make it work if they use a self-checkout. Even though this will work to receive the advertised loyalty price, any points and/or future discounts someone may be trying to earn from using the card at another store will not be added since a different chain would use a tracking system with a database independent of the other chain. However, some stores may also allow a customer to use the store's card if a customer does not have theirs on hand (Kroger does not allow this although customers can enter their phone number to bring their card up if they forget it, or have another customer's phone number entered) or if the customer is new and agrees to sign up right away. Many of the stores allow accumulation of fuel discounts. Some have tie-ins with airline frequent-flyer programs, and some agree to donate a percentage of sales to a designated charity. Most notably, Wal-Mart does not have a loyalty card plan (though someone who purchases a gift card can generally get a 3 cent discount per gallon of gas at the fuel stations located on Wal-Mart premises).

United Kingdom
The loyalty card market in the UK is one of the most significant in the world, with most major chains operating some form of reward system. Passcard has been claimed to be the first reward scheme or discount card, created around by Gary Wilson in 1981 and later known as Passkey.One of the first loyalty cards backed by a major chain is believed to be the Sainsbury's Homebase Spend and Save Card in 1982.
Of the "big four" supermarkets, only Sainsbury's and Tesco operate loyalty cards. Both Nectar and Tesco's Clubcard scheme have been criticised for not offering value for money. When Clubcard or Nectar points are used for money off supermarket shopping, they roughly equate to a 1% discount, although offers can increase this discount by as much as 4 times for certain rewards. Some retailers with banking operations also award points for every pound spent on their credit cards, as well as bonus points for purchasing financial services. A report in The Economist suggested that the real benefit of loyalty cards to UK outlets is the massive database potential they offer.

India
i-mint is India's largest coalition loyalty program, claiming 9 million members and 1500 network partners, with 120 billion INR of sales generated through i-mint-cards in 2009. In June 2010, German loyalty program Payback took a controlling interest in i-mint. Hero Honda's passport program claims over 3 million members.BPCL's PetroBonus fuel card program has 2 million members.Indian Oil's fleet card program XTRAPOWER and retail program XTRAREWARDS claim a combined customer base of 2.5 million. The Maruti Suzuki AutoCard, launched in association with Citibank and Indian Oil had 370,000 cardholders as at October 2008.Kingfisher Airlines FFP(Frequent flyer programs) King Club had 2 million members as on October 2010.It is the most generous FFP in Airlines.
On 07th, Mar 2007 Kingfisher Airlines announced the king of all frequent flyer schemes- The Mega Mile Move(MMM)Offer.

Program management
Across the globe loyalty programs are increasingly finding the need to outsource strategic and operational aspects of their programs, given the size and complexity a loyalty program entails. Program managers are typically agencies with specialist skills in loyalty consulting, creative and communication, data analytics, loyalty software, and back end operations. The advent of Web 2.0 and SaaS online-based services has provided lower-cost options for small businesses to offer and manage their own loyalty programs.

Loyalty cards are becoming mobile (i.e. Members Discount Card, CardStar, CardBank and Loopt).

Criticism
Companies complain that these loyalty program discount goods to people that are buying their goods anyway, and that the expense of doing these programs rarely pays. Other critics see the lower prices and rewards as bribes to manipulate customer loyalty and purchasing decisions, or in the case of infrequent-spenders, a means of subsidizing frequent-spenders. Commercial use of the personal data collected as part of the programmes has the potential for abuse. It is highly likely that consumer purchases are tracked and analyzed towards more efficient marketing and advertising (in fact, this can be one of the purposes of the loyalty card.) To some, participating in a loyalty program (even with a fake or anonymous card) funds activities that violate privacy. There has also been concern expressed regarding RFID(Radio-frequency identification) technology being introduced to loyalty cards.

Loyalty and credit card reward plans might be viewed as modern day examples of a kickback. An employee who needs to buy something (such as a hotel room or an airline flight) for a business trip but who has discretion to decide which airline or hotel chain to use has an incentive to choose the payment method that provides the most credit card rewards or loyalty points instead of minimizing cost for the organization.

Churning:-
Churning may refer to:
General examples-Churning (butter), the process of creating butter out of milk or cream.
-Churning (person), the excessive talking or rambling on by a person.
Business world examples-the turnover of TV channel subscribers/number of disconnections, loss of customers; usually shown in percentages.
-Churning (stock trade), the excessive buying and selling of stocks by a trader such as a broker to generate large commission fees.

Churner:-Customers that are becoming less loyal are called churners.The churner status is defined as a function of the volume of commercial transactions.
Redefining the notion of customer’s loyalty by considering it from a customer-centric point-of-view instead of a product-centric point-of-view,here the customer lifetime value (CLV) approach is used.CLV is defined as the discounted value of future marginal earnings, based on the customer’s activity.
Hence, a churner can be defined as someone whose CLV, thus the related marginal profit, is decreasing.Since profit is what really matters in a commercial environment, standard statistical accuracy measures for prediction need to be revised and a more profit oriented focus may be desirable.

Eg:-Lets see the condition under which a customer has to be considered as being decreasing his/her loyalty, and hence as churning. The issue in a competitive environment is that most people have more than only one supplier. For instance, in retail banking, a customer could have a current account in a first bank and a mortgage loan in another. Most people have several current accounts even if they do not use it (so-called “sleeping” accounts). As a matter of fact, we need to find a definition of a churner applicable to non-contractual products, as opposed to contractual products. Contractual products are for instance insurance, mortgage, cellular phone (if high entry or exit barriers and fixed price), in other words all products with “contractual” cash-flows. On the other hand, non-contractual products could be catalog sales, cellular phones (if low entry and exit barriers and marginal price), etc.

Churning in 3G Marketing:-A churned customer is the one who has stopped using one service provider and has moved to its competitor.
Why customers churn-three general reasons:
Some change for price/tarrif reasons,others are unhappy or upset with their current service provider.Some change to get acces to better services and to gain community benefits. Types of churners:
Joiner-One who is rarely satisfied by staying with any one provider for long.
Leaver-The leaver does not leave because of something done by your competitor,the leaver is upset with you and wants to get away from you.
Changer-A changer leaves not because of anything you did,or what the competitor offered, but for their own internal reasons.

Profiling of the Customers-Immatured to Matured.
-Homogenity.
-Operating Principles.

Next Class:-Transition from Segmentation towards Targetting.
Fitment of SEC Grid.

Recap of 27th Oct Session

Topics of the Session:

1) Niche Marketing:- Niche Marketing can refer to both marketing and business choice. In and of itself, Niche Marketing refers to finding a segment of general market for a specific service or product line. One then develops a solution for needs of that particular segment and then markets it to get the word out.
Eg:- Toyota's Environment Friendly Car: PRIUS (First mass production hybrid car).
A niche market refers to that small segment of overall market base which if targeted in a focused manner results in higher yield rather than focusing on entire market segment. It is a useful way to draw customer attention.
It is such focused and targetable group of potential customers, which if targeted, will result into higher yield due to Unique Value Proposition (UVP) and Distinct Market Offering (DMO).
Distinguished characteristics of Niche Mktg:-(Acc to Kotler and Keller)
-Customers in the niche have distinct set of needs.
-They will pay a premium to the firm that best satisfies their needs.
-The niche is not likely to attract other competitors.
-The niche gains certain economies through specialization.
-The niche has size,profit and growth potential.

2) Distinct Market Offering(DMO)-

The basic requirements for a technology-oriented company to
exploit its uniqueness are: 1) Choose a core technology and then improve
and upgrade it; 2) exchange technical information while positively
fostering human relations; and 3) when an obstacle is encountered, start
from the most difficult technical aspect to overcome it. It is also important
to adopt an attitude of making every attempt cause a positive splash in
the market and with customers.
Eg:This was the attitude taken by Disco
Corporation, an industrial whetstone manufacturer based in Shinagawa,
Tokyo, with remarkable technical potential. Because the company is
unique in cutting ultrathin items such as semiconductor wafers, it
naturally attracted worldwide interest.
It should be stressed again that management is, first and foremost,
the art of adapting to the environment. While relying on a determined
mindset that can adapt to the challenges of the political, economic,
technical, and social environment, it is of paramount importance to have
a realistic attitude, keeping a firm foothold on the ground rather than
giving in to flights of imagination.

3) Sustainable Competitive Advantage(SCA)-"A strategy is well defined when you clearly make the correct choices!"
Competing in today’s business has not been any easier. The choices to make become harder everyday. The whole business world is constantly changing and affecting strategy on daily basis, but only those companies that have strong understanding of their customers’ needs and meeting these needs by solving customers’ problems and enhancing their daily lives by creating innovative products with revolutionized communication approach to position the value proposition to the target group or groups will build a sustainable strategy that can last for at least beyond the next business cycle.
Eg: Selling Coca-Cola through bottle design: A chain of
successful ideas
From its beginnings in the USA, the “black flood” of Coca Cola
spread to Europe, Asia, and now can be found almost anywhere fromthe remote African heartlands to the Himalayas. The amount of Coca-
Cola produced in one year equals the displacement of 280 Enterpriseclass
aircraft carriers. What made Coca-Cola the greatest hit of the 20th
century and captivated tastebuds worldwide?
The addictive nature of Coca-Cola may have been one of the secrets
of its success. A clever management style that favors local autonomy
may have been another. The company also devised one memorable
marketing campaign after another. However, a definitive factor cannot
be overlooked: the shape of the original bottle. One day in 1912,
Chapman J. Root, president of Root Glass Company, visited the head
offices of Coca-Cola on a mission to sell his newly designed bottle based
on the then-fashionable hobble skirt. That bottle made Root a millionaire.
According to American industrial designer Thomas Lamb, the shape of
the bottle includes 20 “ingenuities.” He wrote, “The design increases
sales and gives a sense of satisfaction to the hand that holds the bottle.
The visual and tactile sensations of the bottle made all other beverage
bottles boring and irrelevant.”
Root was the ultimate remora. Although most would imagine that
such a commercially successful bottle would have been designed by the
head office, it was in fact developed by a glass company that was not
even a Coca-Cola subcontractor. Root understood one of the mysteries
of life: the best and surest way to benefit yourself begins by benefiting
others.

Examples Discussed in the Class:

1) Paras Pharmaceuticals Ltd,Ahmedabad introduced Moov as a remedial action for joint problems faced by elder people.It was not intended towards any cosmetic therapy but colour mattered hence white colour was given due preference. Moov Vs Iodex(Flank Attack).
2)Planet Health,Ahmedabad: A Medical selling OTC medicines(Over the Counter).It includes sales of generally prescribed medicines like paracetamol,crocin,d-cold,disprin,strepsils etc.
3)Gamble Company:-It has Facebook as its client company. It develops the application of Poker game widely played on Facebook Community website.The user pattern varies drastically, about 90-98% constitute the users from outside India and mere 2% Indian users of the game.They are through with the business with a hope that Indian market comprising of students,youth(Note:-About 65% of Indian population falls below 35 years of age)will probably start playing Poker after getting good jobs and excellent pay packages.
4)Proximity Marketing: Four Square Company(Not the ciggerette one)-It provides new offers through SMS whenever you are travelling nearby the place where offer is going on in the outlet.In big malls too, Bluetooth technology is utilized efficiently to send SMS to the customers visiting the mall.Eg: Cafe Coffee Day offers sent by sms.
5)Social Media Marketing:- Use of Social Networking Websites like Facebook,LinkedIn,Twitter,MySpace etc.
Eg: OneStopSolution Company developed by a student of Amritha College,Blore: They say dont go for many other social websites for alumni interaction,instead have only one website for interacting with alumni.

[IMP ADVICE:- Manage Your Accounts on Social Networking sites Carefully and Wisely.
Proff.Dr.Ankush Sharma ki aur se participants ke hith me jaari]

Marketing trend this Diwali season or should I say negative marketing trend

A week before Diwali a news started doing rounds on the news channel, internet, blogs, word of mouth that try and avoid sweets this Diwali as they will adversely affect our health.

One can raise a question now that why only few days before Diwali?

The reason I feel behind this is the anti marketing or the negative strategies by the companies with the help of media as they would get direct benefit from it.

Needless to say that chocolates, biscuits and now even the soft drink companies have tapped this crore rupees market and in a wish to capture more, they do negative marketing against the sweets being manufactured in the country and they find it so easy as there is no sweet association in India to resist these negative marketing strategies.

Imagine the authenticity of a news on Nov1 saying that the sweets that we would eat on Diwali Nov 5 will not be good and the matter of fact is that the sweets are due for production on Nov 4th. This kind of a trend has been prevalent for the past few years depicting some fishy strategies by few FMCG companies.

Looking forward to your comments/ views please :)

http://Marketing Strategies of Tata Motors

PEST analysis of Yahoo - might be help in Midterm

PEST Analysis: Yahoo!

Political

Legal regulations of Internet laws differ globally. Internet operators hope to harmonize global laws on Internet however, countries are consistent with implementing their Internet legal framework that is consistent with national policy priorities. Internet law issues can create greater challenge that Internet Jurisdiction which only fundamentally raises questions of whose laws applies to activity that takes place online ( 2004).

Online businesses, like Yahoo, face tough challenges of the legal policies of every country in which they operate. Even Internet jurisdiction has compromise businesses most tough challenges which are intensified with the struggle of conflicting regulations between different countries.

In addition, Internet companies have rage over struggles of regulating privacy on the Internet which was legislated by the Congress. Privacy is taken into public that tight controls should be done with information with explicit permission from the consumers. Internet companies together with the World Wide Web is obliged to implement privacy.

However, regulations on privacy on the Internet would rather harm the Internet operators as compliance with a patchwork quilt of state privacy laws is an unnecessary burden on Internet operators. The major significance of having the Internet is the ability of entrepreneurs and activists to reach a large market or audience with very low barriers to entry. There would also be freedom of expression and do business in the Internet. Though the dot.com bubble took this potential to an optimistic extreme, it nevertheless represents an important economic and technological innovation.

Different policies of different states would fundamentally make a tough challenge to Internet operators since internet connects people in different with also different policies. One state may have been more lax on privacy policies while other maybe tighter. Political activist, business operations maybe interfered with these different policies. It may be easier for Internet operators if the global policies are uniform, however countries are consistent with the appropriateness of their laws with their own national policies.

Moreover, with regulation in Internet privacy, the state may cut entire the opportunity of its people to access to an internet. Conflicting state laws only add to user confusion and make nationwide education efforts (by private organizations or government agencies like the Federal Trade Commission) more difficult.

Because of this infiltration of Internet technologies and the increasing use of the Internet, new issues arise that trouble those who used to comfortably manage information, knowledge and money flows. Governments must decide who has jurisdiction over borderless cyberspace, who can tax whom for transactions on the Web, and who is responsible when something bad happens.
“The Economist claimed that with Internet growth, international regulation has become more important than national regulation. An example of international regulation includes setting common rules for interconnection and licensing. The Internet will become more regulated as telephone networks become less regulated. A current example is the debate over how to manage domain names, the Internet's equivalent of a telephone number. As the number of commercial companies on the Internet increases, the arbitrary rules that differ among countries will become increasingly troublesome. Problems such as trademark and liability issues will arise. The Economist claimed that hunting around for somebody to hold responsible when the Internet conveys pornography or stolen intellectual property, the courts have often turned first to service providers.” ( 2000)

Economic
According to the American Institute of Certified Public Accountant (2006), “the U.S. economy has suffered some significant declines. The U.S. Commerce Department has reported declines that are consistent with a slowing economy: consumer confidence has dropped, plant closings and lay-offs have increased dramatically, profit margins for many companies have slipped and many dot-com companies have failed. Some economists predict a recession, which could result in further deterioration in internally generated cash flows and restrictions on the availability of capital.

Periods of economic uncertainty lead to challenging conditions for companies due to potential deterioration of operating results, increased external scrutiny, and reduced access to capital. These conditions can result in increased incentives for companies to adopt practices that may be incorrect or inconsistently applied in an effort to address perceived expectations of the capital markets, creditors or potential investors.

Economic trends, such as inflationary factors that may hinder the economy or consumer purchasing power, can have a strong influence in the Internet industry. In addition, the global market would be another lucrative market for the ISP industry because there may be cheap technologies provided by some foreign markets such as Europe and Japan. Higher tariffs or a devaluation of the dollar may reduce the consumer purchasing power, causing a shift in consumer buying habit that, in turn, causes revenue loss for ISP domestic companies and partners.” (2006)

Socio-cultural

Rapid increased of Internet usage affected the family values. It has been noted that kids are engaging more of their free time with the Internet which in turn reduces the communication among the family members. Internet can be addicting, to the point that it disturbs one's life and the lives of those around him.

In addition, Internet has caused great change in the way people in a society communicate. The Internet allows anyone with an idea, ranging anywhere from brilliant to insane, to communicate and gain an audience. The online medium holds inherent agency that puts the creation of Internet content into the hands of the masses. People now are more creative with the presence of this technology. However, Internet has also bad effects on the mind of the people. It may have made the people lives faster but it also it entails negative effects on people behavior.

Technological

The backbone of the development of Internet is technology. Technology can be beneficial but at the same time can be a source of creative destruction. Therefore, technology can create many threats and opportunities that must be considered in formulating strategies. Advancements in technology can affect an organization’s products, services, markets, and competitive position. It can also create new markets which can change the relative competitive cost positions in an industry and render existing products and services obsolete.

Recap- 25th Oct Session

Topic of the Session:
What is Segmentation? Why we need Segmentation? (Read TOI Page 22-A Beautiful Article on Segmentation)
-Similar needs & wants
-Categorizing market according to preferences& ability:-
a) Habits
b) Usage
c)Attitude
-Homogenity of Operating Principles.
-On what parameters the customers are same, alongwith motivation/potential to buy your product.

About STDP:
S-Segmentation
T-Targeting
D-Differentiating
P-Positioning

Marketing Strategies in brief:-
1)Attacking Strategy: U attack me and I attack U. eg: Maggi Vs Top Ramen.
2) Defensive Strategy: Preserving and maintaining the market share/consumers.eg: Nokia with 60% market share, attempted for retaining customers by introducing Dual Sim Cellphones.
3) Flank Attack Strategy: Finding faults/loopholes in the defense of other players in market.eg: IIM-A Vs ISB, Naukri Vs Monster.
4) Guerilla Strategy: Finding unhidden territories of the big player in market.Most dangerous warfare,concentrating on underutilized territories of big marketers.

Changing nature of Market Segments:
Segment does not remain constant,it moves.eg: Bajaj Scooter, Maggi Noodles.
We need to know segment to adapt to it changing needs.When Segment moves-numbers move and it involves rigorous analytical study.
Marketing Engineering: Study of the Markets and Models.

For Next Session:- Niche Marketing and Field Briefing.

SEC Grid

https://docs.google.com/present/edit?id=0ATze1Megto8AZGdoOWRkcDRfNGY4enBuM2cy&hl=en

Hey guys check this out !

Recap - 21st Oct Session.

1) Batch C will discuss at least 8 cases till the end of this trimester.

2) Discussion on the questionnaire:
==> include the demographic details in the beginning.
==> At least 35 samples required from mumbai region per team, where each team member is required to do at least 5 and the remaining 15 in their hometown.
==>  Remaining instructions will be given on Wednesday ( field briefing).

3) Discussion of the KPCL masalaless case:

Dos for the next case:

==> More number crunching requires from next time onwards.
==> Attack the exhibit right away instead of summarizing the case.
==> Avoid ivory, andaman n nicobar islands :)
==> Analyse the case from other subjects perspective as well like CA, FA, Ops etc

4) Next Monday, Chapter 8 of Kotler will be discussed i.e discussion on segmentation.

Please feel free to add points.

War between BlackBerry and Apple

Some Facts Regarding Cadbury Celebrations!!!

Cadbury India Pvt. Ltd is unwrapping a new advertising, branding, product and retail strategy to position its Cadbury
Celebrations gift range on the broader usage plank of year-round gifting, including social visits.

Uptil now, this brand has been narrowly focused on festivals and occasions. The Celebrations gift range exists under the Cadbury Celebrations brand portfolio.

The chocolate market is valued at more than Rs1,600 crore, and growing at 18-20% per annum. By broadening its gifting proposition, Cadbury hopes to outpace category growth. Cadbury India executives say Cadbury as a whole currently commands 70% of the chocolate market in value, and the entire Celebrations range marketshare is 6.5%.

To increase its usage width, the Celebrations gift range has been launched in different package sizes, priced between Rs145 and Rs155. The Celebrations gift range is now also called ‘panned’ chocolate, since it contains nuts, etc. “It will be sold at premium food stores and modern trade formats to achieve ‘differential visibility’,

The communication for Celebrations earlier concentrated on occasions like Diwali and Rakshabandhan.
Over the last seven to eight years, the brand emerged as a good gift proposition for occasions and enabled people to come closer. Research done by Cadbury also suggested that we extend the plank of occasion-based gifting to social gifting. It is our endeavour to provide our consumers with all-year-round gifting options. We came up with new packaging for the panned chocolate as we feel that it was significant to refresh and revitalize in terms of aesthetics and graphics.”

Recap of 20th Oct Session.

Hi All,

The class begun with yet another surprise. Not the test, but with the news of finishing another case study for tomorrow- Case Study on Kanpur Confectioneries Pvt. Ltd., which is a case study done by the IIM-A. Then came another surprise on 20-10-2010.. :)..the test. Test not for marks. But to show us the mirror that where we stand. Where we are diverting ourself from our goal? Reading & vomiting out in the paper is not what sir wants. But he wants us to read & learn. Learning should be from class teaching, case studies & Kotler (or Marketing bible). The results showed where we are. With most of us scoring "Positive Zeros", it was not that bad. I said positive because the zero we scored made us realize that we need to wake up & study for our own good. It was not meant to show us that we are lacking behind anybody. Further, sir explained that we should all try to spend more time on constructive activities. But hearty congratulations to Garima, Manas, Rajiv & Archana for not getting junk marks.

Further coming back to the topics of discussions, we first discussed briefly the questions of today's test.

Ans 1-Natural market emerge from groups of consumers with shared preferences is known as clustered preferences.

Ans 2- Ex: Ezee, Ayurveda Toothpaste, Astha & Sanskar channel, Crack, moov etc

Ans 3- Types of Segmentation: Demographic, Geographic, Psychographic & behavorial

Ans 4- VALS network: Innovators, Thinkers, achievers, experiencers, believers, strivers, makers & survivors.

Now coming the class headed towards market research topic. Market research can be conducted on the basis of scales. Scales are the "Flesh of a Questionnaire". Without the scales, the questionnaire is just like a skeleton. Now going towards different types of scales:

1) Semantic Differential Scale (SDC): This is also known as bipolar adjectives. Like Poor quality to high quality. It is one of the major scale to measure the attributes. SAD or Semantic Attribute Differential is a major function to determine people's experiences or views. An example is given below to make u understand better about SDC.

2) Likert Scale: It is a declarative statement scale where people declare or put forward their views about a particualr question. Like whether "Knockout is a pathetic Movie" and the options are : Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree. One has to choose between these to put forward their view point. Another major point is that the scale must be balanced i.e. it should be able to take into consideration all the possibilities. For example: the scale cannot have only four of the attributes of the above mentioned scale. Coz if U are missing one of them, then u are missing out a whole bunch of people who may have the same feeling as the missing one could have indicated. An example is given below:

3) Constant Sum Scale: This is the process of measuring different attributes w.r.t marks and sum of marks. One example was given of that off Cadbury Diary Milk Celebrations. How much one would rate the cadbury Celebrations. let say 30 points being given to quality, 30 given to the price, 10 points given to the ads & the remaining 30 points given to, say, customer satisfaction.

Another important thing told is about the Cadbury coming out with teh celebrations funda.. it took 4 years to make people change their age old traditions of giving Kaju Katli & other mithaais to switch over to Cadbury Celebrations. Now they are targeting the people who are just calling up their friends on festivals by telling them that" Kab Tak phone pe wish karige". This is to make them go to their friends & well-wishers house, coz until they visit places, Y will they go for buying celebrations...

Finally, it was an off day for our class.. But Sachin also gets out on Duck some day. But he always tries not to be bogged down again. So will the class. Keep up the good work. Hope this was just a blimp. :)

Crown TV - Case study discussion - 18th Oct 2010

Friends,
The case study discussion on Crown TV on 18th Oct 2010, Monday was well appreciated and accepted by Ankush sir and all of you. Following are some of the observations of sir and key takeaways for us.

On the case:

1. Dealer is not a friend, so it is key to keep him happy all the time and ensure good margin management is followed.
   
2. This product is mainly driven through channel sales and not direct sales. So your channels of distribution are key to the successful performance of your brand.
   
3. After sales service is also very important as it is a durable commodity with an average life span of 3 - 5 years for a household.
4. From a company perspective, Dealer is more important than the attributes of the brand, as he influences the decision making process of the customer when a sale is about to happen.

On the discussion:

1. It was nicely coordinated and managed by the 5 speakers. (Thanks to Sayantan for doing an excellent job on writing the key points of the case in the board.)
2. Class participation was close to 40 %, which was better than the previous case discussion. Ideal participation should be in the range of 40 - 55 %. It should not exceed 60 %.
   
3. The flow of the discussion was lacking an order, as it lead to ivory islands being created. Correlation of topics needs to be there in the discussion.
4. Allocation of time in all the aspects of the discussion is key for an ideal in depth analysis of a case.
   

Amway!!!

Business Model...

The AMWAY business model is based on the AMWAY Business Owner Compensation Plan – a low-risk, low-cost business opportunity that is open to everyone.

An AMWAY business rewards you for selling products and for sponsoring others who do the same. As your business grows, so do your rewards. In this business you earn income from:

Retail profit* on product sales to customers.
Monthly performance bonuses ranging from 3% to 25% of business volume, depending on your monthly productivity.

Monthly and annual leadership bonuses and other cash awards and business incentives based on group performance.

As an international company operating in 80 markets, Amway adapts its business model to the cultural and economic needs and standards of the markets in which it operates; our business model varies slightly from market to market.

Become an AMWAY business owner and have a business with unlimited potential of your own!

*Retail margins on health, beauty, and home care products average about 29% when these products are sold at Suggested Retail price. You have the freedom to determine independently the prices at which you sell products to customers, so you decide your retail margins.
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Amway combines direct selling with a network marketing strategy.Independent Business Owners(IBOs) may both market the products directly to potential customers and also recruit (sponsor) and train other people who become IBOs themselves and in turn have the same opportunity. Each IBO may earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline have generated. People may also register as IBOs to buy products at a discounted rate.Amway has been accused of using high pressure tactics and in effect brainwashing its IBO's, using peer pressure in meetings and threats to get IBO's to recruit more, lower income members who are less likely to complain about being taken advantage of. These claims however have never been proved in the many court cases against them due to alleged clever manipulation of the employment laws in various countries.

The word 'British' in BPL!!

BPL was incorporated as British Physical Laboratories Ltd in 1963. Today, it is an over Rs 2,600 crore group and has a formidable presence in colour and B&W TVs, audio systems and telecom. BPL started off making hermetically sealed panel meters in collaboration with BPL (Instruments) Limited, UK.

Hence it is clear why it was named so !

Number of households in India

As per the last census of 2001, the total number of households in India were 191,963,935 and the further the sub classification can be seen on:

http://censusindia.gov.in/Tables_Published/H-Series/H-Series_link/S00-012.pdf

CCD directly from Kotler!!

Topics covered till 4th OCT

Above mentioned are the topics covered till 4th october 2010

strategy for amul milk

This is a present situation regarding manufacturing and distribution of amul milk, it's niche concept, calculations and problems.It would be really helpful to share some of the ideas and strategies to implement about the situation and problems occuring to them.....


Amul milk stays fresh for 15 days in 3-layer tetra-packs. Needing no refrigeration (till opened), it is retailed from Bombay commercial shops by-passing government booths, rationcards, queues and outlandish timings.

Amul 1/1 milk contains 6 per cent fat and sells at Rs. 6 a litre. Compared to this government distributes 6 per cent full cream milk (Rs. 6 a litre), and 4.5 per cent standardized milk (Rs. 4.60 a litre).

Bombay’s milk consumption is around 18 lakh litres a day. Worli dairy provides around 12 million litres (66 per cent) while private sources supply the rest. Milk has always been in short supply and thousands of applications languished for years on end in the waiting lists of government-run Worli dairy.

The under-supplied Bombayite has been compelled to turn to the private market, constituted largely of medium to small ‘bhayya’ cattle owners. Privately produced milk is often water-diluted and always unpasteurized.

Amul milk, therefore, appears destined for stardom. Prime in quality and available at convenient outlets all hours of the day, it would seem the answer to a prayer. But a piquant marketing situation arose just a few days before it was launched when the Maharashtra government announced that rationing was over and consumers could have all the milk they wanted from official booths. This undoubtedly throws Amul on its marketing mettle. The renowned cooperative will have to fight for market share and devise strategies to get Bombay households to consume its milk.


Think about it and present your own solutions.
thank you...

INNOVATIVE MARKETING - INDIA POST-GODREJ TIE UP

Now, postman will ring twice — for letters and consumer durables

The humble postman will henceforth deliver not just letters, telegrams, parcels and money-orders at your doorstep; he will also hawk consumer durables.

Godrej and Boyce Mfg. Co, one of the leading manufacturers of consumer durables, has entered into a marketing tie-up with the India Post (Maharashtra Circle) to leverage the vast reach of the latter in terms of number of offices and manpower to push sales of ‘ChotuKool' ( a low-cost cooling appliance).

Under the tie-up, the postman will source business, book orders, collect payment and deliver the product in rural and semi-urban areas.

Marketing chotukool

ChotuKool is a new low-cost solution developed by Godrej for storing milk, vegetables, fruits and potable water. Weighing 8-9 kg, the cooling appliance is priced between Rs 3,490 and Rs 3,790.

Initially, the tie-up will be rolled-out in four divisions — Navi Mumbai, Raigad, Thane (West) and Thane (Central) — of India Post. Depending on customer response, the tie-up will be expanded to rest of Maharashtra and Goa and later on to the entire country, said Mr Faiz-Ur-Rehman, Chief Postmaster General (Maharashtra & Goa), India Post.

“The India Post team will not only generate sales leads, but will also book orders and collect payment from customers….For physical delivery of ChotuKools at customer's doorsteps, Godrej will use our Express Parcel Post Service,” said Mr Rehman. India Post will earn Rs 275 as commission (inclusive of service tax) on sale of every ChotuKool. The tie-up is non-exclusive and it will be operational for three years.

Social purpose

“We have entered into this marketing tie-up not just for revenues. There is a larger social purpose to it. Just 20 per cent of our population uses refrigerators. The lives of the balance 80 per cent will improve significantly if a cooling device for storing perishables is within their reach,” said Mr K. C. Mishra, Postmaster-General.