Detailed

1) Customer v/s Consumer
Customer is the person who pays the price and purchases the goods or services of a certain producer or a
business. Therefore, the customer is not essentially the consumer as well. The customer may pay the price and
buy the products and give them to a different person who then becomes the consumer of them.
Consumer is the person who consumes or uses the goods or the services. The customer can be the consumer as
well, however not in all cases. Nonetheless, it is the consumer who will know the genuine quality and the nature
of the product or the service since it is the consumer who consumes it.
Relationship Between Customer and Consumer

· The customer and consumer can the same person or not.
· The consumer’s opinion may directly affect the customer as well as buying the products or services.
The fundamental differences between customer and consumer, in marketing are described below:
1. The person who buys the goods or services from a seller is known as the Customer. The person who uses the
goods or services is known as a Consumer.
2. The customer is also known as buyer or client whereas the Consumer is the ultimate user of the goods.
3. The customer can be an individual or a business entity while a Consumer can be an individual or a family or a
group of people.
4. Customer pays the price of the product or service however he may recover it from the other party, in case if he
had purchased it on behalf of any person. Conversely, Consumer not necessarily pays the price of the product,
like in case the goods are gifted or if they are purchased by the parents of a child.
5. The customer purchases the goods for the purpose of resale or to add value or for his personal use or on behalf
of another person. In contrast to Consumer, who purchases the goods for the purpose of consumption only .
Ø New Product Development
There are 8 stages of product development:
1) Idea Generation.
2) Idea screening.
3) Concept developing and testing.
4) Marketing strategy and development.
5) Business analysis
6) Product development
7) Test marketing
8) Commercialization
Ø Pricing Strategies:
1. Skimming Pricing
Price Skimming is a strategy of setting a relatively high introductory price of the product when the product is new and
unique and the market has fewer competitors. The idea is to maximise the profits on early adopters before competitors
enter the market and make the product more price sensitive.
Ex: Smartphones both iPhones and Android are introduced in the market at a higher price, but the price is reduced as
the time passes.
2. Penetration Pricing
Penetration pricing is a pricing strategy where the price of the product is initially kept lower than the competitors’
products to gain most of the market share and to trigger word of mouth marketing
Ex: Oneplus launched its flagship product Oneplus 1, which had all the features of an iPhone, at a highly affordable
price of $299. Once the company acquired a good market share, it started launching its products at a premium. The
recent phones from Oneplus are priced in the range of $500-$700.
3. Psychological Pricing
Psychological pricing refers to the psychological pricing strategies marketers use to make customers buy the products,
triggered by emotions rather than logic. Such strategies come in the form of:
§ Charm Pricing: This involves reducing the price by a minimal amount which makes the customer perceive the
price to be less. For example – the price of a $3 product is set as $2.99 in supermarkets as customers’ brains
process $2.99 to be nearer to $2 and not $3.
§ Prestige Pricing: This involves rounding off and setting a higher price for premium and exclusive products as
rounded figures are easily processed and are preferred in such cases.
§ BOGOF: Buy one, get one free offers trigger the greed among the customers as they get two products for the
price of one. This strategy is often used to clear up the stock or increase the volume of sales .
§ Price Anchoring: Anchor is the first price communicated to the customer to make their mind revolve around that
price and buy the product the retailer wants. For example – printing double price label showing a regular price
and a sale price, keeping a higher priced and medium quality product along with a lower priced but good
quality product to increase its sale, etc.

4. Bundle Pricing
Bundle pricing involves selling packages or set of goods or services at lower prices than they would have actually cost
if sold separately. This is an effective strategy to bundle unsold products or products with less demand with the high
selling products to clear up the shelf space and to increase the profits
Ex: Mcdonald’s happy meal is a perfect example of bundle pricing
5. Economic Pricing
The costs of marketing and promoting a product are kept to a minimum
Ex: Aldi uses this no-frills economy pricing strategy where it operates small stores, only sells products which have a
good demand, keep products in their original shipping containers, and even charges the customersif they ask for carry-
bags
6. Geographic Pricing
Geographical pricing sees variations in price in different parts of the world.
Ex: Nandini milk cheaper in South India
Ø Distribution & its Strategies:
Distribution Strategy is a strategy or a plan to make a product or a service available to the target customers through
its supply chain. ... A company can decide whether it wants to serve the product and service through their own channels
or partner with other companies to use their distribution channels to do the same.
1. Intensive Distribution: Used commonly to distribute low priced products or impulse purchases. For example
snacks such as chocolates, soft drinks and crisps
2. Exclusive distribution: Involves limiting distribution to a single outlet. The product is usually highly priced, and
requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through
exclusive dealers.
3. Selective Distribution: A small number of retail outlets are chosen to distribute the product. Selective
distribution is common with products such as computers, televisions household appliances, where consumers are
willing to shop around and where manufacturers want a large geographical spread .
Ø STDP(Coco-Cola):
1. Segmentation
Coco Cola company is the world’s driving producer, advertiser, and merchant of delicate drinks. Coca
Cola utilizes “Multisegment” focusing on procedure which implies that the organization has more than
single, all around characterized, market section. It builds up a showcasing blend for each of the
portions. Coca Cola has more than 400 distinct items line, aggregate of 3,500 item blend.
2. Targeting
Coca Cola uses different blends to target different age groups, ethnic groups, sexes, lifestyles, etc. for
example they use “OASIS”, a juice to target the age group of 20-30. And also it produces products like “Diet
Coke, Coca Cola Zero” for the health conscious people who don’t prefer calories but cannot forget the taste.
This age group consists of the people aged 30-50.
3 Positioning
Coca Cola has deliberately situated itself inside of the world soda pop market. It confronts a crucial inquiry: does
it need to keep the same situating or to adjust as indicated by the 200 nations where the brand offers its items. Coca Cola
items are obtained by various classes, yet mostly by middle to high level class. What’s more, numerous individuals today
settle on their buys choices taking into account the organization’s morals and, or social obligation. Coca Cola picks up the
trust of its shoppers by adding to nature in various ways
Ø PROMOTION & INSIGHTS:
“Airtel” – airtel was always the top most. Airtel cannot grow only on the base of telecom. Therefore they
started data service. This was done from segmentation, they focused on youth. Especially the characteristics
of the youth. Social has many friends, but in real very few.
When you get addicted to data, the next step is ‘share’. ‘jo tera hai vo mera hai’ for internet.
Ø PLC (Maggi):
INTRODUCTORY STAGE:
Nestle launched Maggi in India in the year 1982 with it’s 2 minutes instant noodles. When Nestle launched this product
there were a lot of ups and downs, with high failure rates. Maggi, then had no competition and incurred high production
cost. A lot of research was also done in this stage which caused frequent modifications.
Growth Stage:
Around 1985, the demand for Maggi had increased tremendously in India. The entire development cost was recovered
and moreover it’s sale rates had also increased. In 1990 the demand for Maggi had dropped a little because of an
introduction of a new brand named Top Ramen. So in order to increase it’s sales Nestle formulated a new flavour which
wasn’t well accepted by it’s consumers. Thus in 1999, Nestle re-launched the old flavour of Maggi, which in turn
increased it’s sales.
Maturity Stage:
During it’s maturity stage, Maggi’s sales were at peak, production costs were low and profits were high.
Declining Stage:
As we all know that Maggi is now banned in India due to it’s high lead content. Thus it is going through it’s declining
stage now. Nestle is conducting a lot of research and if they come up with something new and better, then Maggi might be
selling it’s products in the future, or else after the declining stage, this brand would become history in India .
Ø BCG Matrix(Nivea)
The brand operates in four reportable business segments i.e. Body care, Suncare, Men product and face cleansing &
nourishing business.The Body care and face cleansing & nourishing products of the brand is the bread & butter since its
inception and is, therefore, is Stars in the BCG matrix. However the Baby care products have been the new business
segment that the brand has entered into and Nivea in 2017 started strengthening Sun care portfolio, both the portfolio is
still struggling to make its marks on the market, therefore, is the question mark in the BCG matrix.
Ø Ans-off Matrix
The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze and plan
their strategies for growth. The matrix shows four strategies that can be used to help a firm grow and also
analyzes the risk associated with each strategy·
Market Penetration:(EXISTING Market, EXISTING Product)
This strategy involves an attempt to increase market share within existing industries, either by selling more
product to established customers or by finding new customers within these markets – typically by adapting the
‘Promotion’ element of the Marketing Mix. Due to the incredible strength of Coca-Cola’s brand, the company has
been able to utilise market penetration on an annual basis by creating an association between Coca-Cola and
Christmas, such as through the infamous Coca-Cola Christmas advert, which has helped boost sales during the
festive period.
· Product Development: (EXISTING Market, NEW Product)
This involves developing new products for existing markets by thinking about how new products can meet
customer needs more closely and outperform competitors. A prime example of this was the launch of Cherry Coke
in 1985 Coca-Cola’s first extension beyond its original recipe prompted by small-scale competitors who had
identified a profitable opportunity to add cherry-flavoured syrup to Coca-Cola and resell it. The company has
since gone on to successfully launch other flavoured variants including lime, lemon and vanilla.
· Market Development:(NEW Market, EXISTING Product)
Thirdly, the market development strategy entails finding a new group of buyers for an existing product. The
launch of Coke Zero in 2005 was a concept being identical to Diet Coke; the great taste of Coca-Cola but with zero
sugar and low calories. Diet Coke was launched more than 30 years ago, and whilst more females drink it every
day than any other soft drink brand, it came to light that young men shied away from it due to its consequential
perception of being a woman’s drink. With its shiny black can and polar opposite advertising campaigns, Coke
Zero has successfully generated a more ‘masculine’ appeal.
· Related Diversification:(NEW Market, NEW Product)
This involves the production of a new category of goods that complements the existing portfolio, in order to
penetrate a new but related market. In 2007, Coca-Cola spent $4.1 billion to acquire Glaceau, including its health
drink brand Vitamin water. With a year-on-year decline in sales of carbonated soft drinks like Coca-Cola, the
brand anticipates the drinks market may be heading less-sugary future – so has jumped on board the growing
health drink sector.
· Unrelated Diversification: (NEW Market, NEW Product)
Finally, unrelated diversification entails entry into a new industry that lacks important similarities with the
company’s existing markets. Coca-Cola generally avoids risky adventures into unknown territories and can
instead utilise its brand strength to continue growing within the drinks industry. That said, Coca-Cola offers
official merchandise from pens and glasses to fridges, therefore exploiting its strong brand advocacy through this
strategy.
Ø Porter’s 5 forces(Amul Dairy)
Amul Dairy has acquired a variety of companies that assisted it in diversification and growth of its product's profile. This
is the thorough description of the Porter's design of five forces of Amul Dairy Company, given up Exhibition B.
Competitiveness
Amul Dairy is one of the leading company in this competitive industry with a number of strong rivals like Unilever, Kraft
foods and Group DANONE. Amul Dairy is running well in this race for last 150 years. The competition of other
companies with Amul Dairy is quite high.
Threat of New Entrants

A number of barriers are there for the brand-new entrants to happen in the customer food industry. Only a few entrants
succeed in this market as there is a need to comprehend the customer requirement which needs time while recent rivals
are aware and has progressed with the customer commitment over their items with time. There is low risk of new
entrants to Amul Dairy as it has quite big network of distribution worldwide dominating with well-reputed image.
Bargaining Power of Suppliers

In the food and beverage industry, Amul Dairy owes the largest share of market needing greater number of supply
chains. In reaction, Amul Dairy has also been concerned for its suppliers as it believes in long-term relations.
Bargaining Power of Buyers

Thus, Amul Dairy makes sure to keep its consumers satisfied. This has actually led Amul Dairy to be one of the devoted
company in eyes of its purchasers.
Threat of Substitutes
There has been a terrific risk of replacements as there are alternatives of some of the Nestlé's items such as boiled water
and pasteurized milk. There has actually also been a claim that some of its items are not safe to use leading to the
reduced sale. Therefore, Amul Dairy began highlighting the health advantages of its items to cope up with the substitutes.
Ø Market Challengers
A market challenger is a company which tries to expand its market share by aggressively flooding the market
with its products at competitive prices. ... They can challenge the market leader or other competitors by launching these
strategies.
1.Frontal Attack
This is a direct attack based on the competitors’ strength. Usually the attack is done by offering lower price, better
quality product, aggressive advertising, or better service quality to customers. This kind of attack is risky because if you
lose, your sales, customers and public image will be in vain.
Ex: Market Leader : Cafe Coffee Day
India's largest coffee conglomerate.
Market share : 46%
% of stores in top 8 cities : 61%
Strength : Product quality and taste, Affordability with comfort, Youth oriented brand.
Market Challenger : McDonald's India
Launched McCafe on Oct 14th, 2013.
McDonald's created a line designed to compete directly with coffeehouses like CCD & Starbucks, by crafting premium
coffee drinks without premium price tag.
Attacked the strengths of CCD
Quality product & taste
Affordable prices
Targeted the youth
2.Flank Attack
This means attacking the competitors’ weak points. Market challenger can identify the weak points based on geographic.
This means challenger find the area competitors are under performing and develop marketing strategy to cater that
area. Other than that, they can also challenge the competitors based on segmentation. This is where challenger identifies
the segment that competitors left out and create a product to satisfy them. This strategy, if done the right way, can
alleviate your rank in the marketplace and bring outstanding results.
Ex: Balaji vs lays
Dabur vs Patanjali
3.Encirclement Attack
This means attacking the competitors based on their strengths and weaknesses at the same time. Simply put,
encirclement attack is the combination of frontal and the flank attacks. If a company wants to use this strategy, they
must have superiority in all areas. Market challenger can do this by launching some promotional strategies in order to
attack competitors and force them to defend themselves. In this way, the market challenger will be able to gain market
share.
Ex: yippee vs maggi
4.Bypass Attack
This is an indirect attack where market challenger bypasses the leader and attacks easier market to broaden its resource
base. There are several ways to do this. Such ways are developing new product, diversifying into unrelated product or
expanding into new geographical market with existing products. This strategy is done to achieve dominance in the
market you are working in for a long term and is actually a very good one if the industry you are currently working in is
very competitive.
Ex : Market Leader : Coke
Market share : 17.8%
Products of main market are Diet Coke, Coca-Cola Zero, Fanta, Sprite, Powerade, Minute Maid.
Market Challenger :Pepsi
Market Share: 8.4%
Pepsi used the bypass attack against Coke by launching the Aquafina, mineral water brand, very much before the coke’s
Dasani Brand.
5.Guerrilla Marketing
Guerrilla marketing means gaining small victories that can over time give huge impact for you to increase your market
share. Usually, this strategy is done by a small company that first makes it a success in the local market. After that, they
usually introduce the price and trade discounts. This is because every large player at some point was small in the
industry. Besides, this strategy is known to demoralize the competitors and eventually help you to secure your place in
the industry.
Ex: One of the usual places to create guerilla marketing actions are the zebra crossings. The lines painted on the ground
give you a lot to play with if you have the necessary creativity. For example, McDonald’s simulates that the lines are
French fries coming out of the typical package of the hamburger brand.
2 Market followers
The rule of business is that when you are a market leader, there are definitely going to be market followers. Many
companies come out with a market follower strategy. In fact, in today’s world, the competency of all companies are so high
that innovation is quickly copied or imitated in different formats.Market followers are bound to exist in a mature market.
The market followers are wider in case of online marketing because online marketing has lower entry barriers and higher
returns. Thus, in online commerce itself, you will see that companies like Snapdeal, flipkart, amazon, jabongg have all
started one after the other. Off course, the market leaders were Ebay and Amazon. But they are facing stiff competition
nowadays.
For example: Apple came out with the multi touch smart phones, but today Samsung is leading that market in terms of
total turnover. Thus there are several market follower strategies in effect in today’s business environment.
· Market adapters: 1)Britannia Good day, Parley 20-20, Priyagold butter biscuits. 2) Dish tv, Tata
Sky, Airtel tv.
· Cloners: Lays vs. Legs
Colgate vs. coolgate.
· Imitators: Same design of shoes are made by local commodity seller.
· Counterfeiters: Same Brand name and totally illegal.
Ø Market leaders
A market leader could be a product, brand, company, organisation, group name which has the highest percentage
of total sales revenue of a particular market. Market leader dominates the market by influencing the customer
loyalty towards it, distribution, pricing, etc.
Ex: Microsoft was the first company to launch operating system (Windows) and web browser (Internet Explorer)
in the market. Apple as a company was the first one to introduce the concept of portable media device in which
music can be stored on a drive, ipod. Market leadership is not about sales and dominance but it is more about how
relevant the product is for the audience. Apple generates more revenue by selling iPods compared to other
manufacturers who are selling MP3 players. It is all about innovative ideas which will help the company to connect
with the relevant audience. The company tries to introduce those products in the market which can add value to
the customer. Market leaders often unveil products which can redefine the customer experience in terms of
product quality, longevity, ease of operating that product etc .
Ø Market Niche
Niche marketing involves targeting a specific demographic, where you might have several products or services
that are beneficial for that particular group. However it can also involve providing a specific product or service,
from which a broader market might benefit
Ex: The best example of one such niche product is the brand called "Meera" shampoo, manufactured and
marketed by Cavinkare in the sachet segment. It has the traditional shihakkai base and is a hugely herbal product
Ø Product line extension
A product line extension is when a company creates a new product in the same product line of an existing brand.
The strategy for an extension could be a different color or size, and it may have different ingredients or come in
different flavors. The company is marketing the value and quality of the existing product line to introduce more
choices to consumers.
Product line extensions are fairly low risk because you already have a successful brand. But, you don't want to
overexpose your brand to the point where consumers are confused about what types of products you offer. So,
it's important to maximize your exposure, but be smart about it. There may be times when a brand extension is a
better marketing decision.
Ex:
The consumer products of Nirma are basically a summation of four product lines namely Soaps, Detergents, Edible salt
and Scouring products.The product lines under each are extended as follows:
Soaps: Nirma beauty soap(75g, 150g), Nirma beauty soap, Nirma Rose(100, 200), Nirma Sandal(100g, 150g), Nirma
Lime fresh soap(75g)
Detergents: Nirma Washing powder, Nirma detergent cake(125 & 150 g), Super Nirma Detergent cake(125g , 150g),
Super Nirma washing powder(1.5 kg, 1kg)
Gokul P. 79
NEW PRODUCT DEVELOPMENT- MARUTI SUZUKI
In order to gain momentum with the increasing demand of diesel powered cars in India, Maruti Suzuki is planning to
introduce two new diesel powered models by late 2014 and this time you won’t see the tried and tested Fiat sourced 1.3-
litre Multijet turbo diesel engine powering them. The Japanese automaker, Suzuki is said to be developing two new diesel
engines for the Indian market. India’s largest passenger carmaker will be introducing 1.0-litre and 1.4-litre diesel engines,
getting rid of the Italian carmaker’s 1.3-litre Multijet diesel mill.
This move can result in reducing manufacturing costs and can help the carmaker to price the products aggressively. Maruti
Suzuki has tasted tremendous success in the Indian market with the Fiat sourced Multijet diesel engine powering the Ritz,
Swift, DZire, Ertiga and SX4. The Italian carmaker’s technology has helped Maruti Suzuki find itself amongst the top
selling cars in the Indian car market consistently every month. The diesel engines under development by the Japanese
automaker can help the company to target a range of segments.
The small 1.0-litre diesel engine can power compact hatchbacks like the WagonR and A-Star, while the bigger 1.4-litre
diesel motor can be used in the Swift, DZire, Ertiga as well as the upcoming compact SUV based on the XA-Alpha concept.
Maruti is readying up a diesel engine plant in Gurgaon with an investment of around Rs. 100 crores and an annual
production capacity of three lakh units. The agreement with Fiat says supply of one lakh diesel engines to Maruti for three
years starting from 2012, which means beyond 2015, Maruti Suzuki might not get diesel engines from Fiat.
Nisha Jain 83
PRICING STRATEGIES
Premium Pricing Example
Branded unleaded petrol is sold at a higher price than regular unleaded petrol. The consumer never gets to test if the
branded is better, yet he buys the branded offering thinking if it’s expensive, it must be better.
Penetration Pricing Example
Oneplus launched its flagship product Oneplus 1, which had all the features of an iPhone, at a highly affordable price of
$299. Once the company acquired a good market share, it started launching its products at a premium. The recent phones
from Oneplus are priced in the range of $500-$700.
Economy Pricing Example
Aldi uses this no-frills economy pricing strategy where it operates small stores, only sells products which have a good
demand, keep products in their original shipping containers, and even charges the customers if they ask for carry-bags.
Price Skimming Example
Smartphones (both iPhones and Android) are introduced in the market at a higher price, but the price is reduced as the
time passes.
Predatory Pricing Example
A perfect example of a company adopting a predatory pricing strategy is Amazon which, in 2013, offered books at a price
less than the cost price and even shipped it for free just to win over the traditional brick-and-mortar competitors.
PROMOTION - ICICI life insurance (Bande ache hai)
The brand building in life insurance — a category that's little over a decade old — with almost 24 players is further
compounded by the multiple options like protection, retirement and child welfare to name just a few. Tying all this in with
an overarching corporate theme makes it a fairly complicated and a knotty exercise.
Shares Manish Dubey, SVP and head marketing, ICICI Prudential, "The brand, in this category, is not only built top-
down through advertising and communication. It is also built bottom up through multiple on-ground customer experience
moments. These experiences are hard to standardise and regulate."
the campaign team decided to build an emotional relevance for the customer by putting the simple acts of goodness of the
family man as the pivot (in the context of protection). Very similar to the role life insurance plays.
We were looking for the magical intersection point where the customer life-truths met and resonated with the role of the
brand, and found this in the understated everyday caring role of the family man." The brief to Lowe Lintas, the creative
agency, was straightforward. Shares Amer Jaleel, national creative director, Lowe Lintas, "We were told that ICICI
Prudential wants to be a brand that men love. As simple as that."
Thus the communication had to be all about celebrating men. These are men who do not make a big deal or thump their
chest to constantly reiterate that they care. They just do things and don't even let others know.
DISTRIBUTION STRATEGY
Distribution strategy of a firm is a plan created by the management of a manufacturing business that
specifies how the firm wishes to transfer its products to intermediaries, retailers and end consumers.
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a
combined production capacity of 14,50,000 vehicles annually. Maruti has a strong dealer network.
Infact it was one of the very first companies in the country to understand the importance of after sales
service in high involvement products like cars. It has the largest distribution & Service network
comprising of over 400 sales showrooms, over 600 dealer workshops, and 1900 Authorized Service
Stations spanning across over 1190 cities unparalleled in the country. It has 30 Express Service Stations
on 30 National Highways across 1,314 cities in India. Most of the service stations are managed on
franchise basis where Maruti trains the local staff. To increase their reach to rural India, where setting
up a complete dealership was very difficult, they opened extension counters
which are operated by some dealer in the city thereby ensuring increased customer touch points
without risking the viability of the dealers.
SEGMENTATION,TARGETING AND POSITIONING- TITAN
Titan first launched its quartz range with heavy advertising. The first advertisement described
the titan quartz as the international watch that could be bought in Indian rupees. Later campaigns
also positioned the watch as a gift item, with advertisements saying: The next time your husband wants
to buy you a saree ask him for a Titan watch. This campaign was an enormous success.
Music became an essential part of Titan’s advertisements. The advertisements featured two or
more people- parents, spouses, siblings coming for specific occasions. In the early 2000s, Titan realized
it would have to use other ways to motivate people to buy their watches.
Segmentation became an important issue as their operations expanded. Titan believed

that different brands have to be created for the different segments. Titan has segmented the watch
market and identified clearly the needs of each group. Titan has segmented the market on the basis
of the following variables: Demographic (age and social class), Psycho graphic (lifestyle and
personality), Behavioural (benefits and occasions, Geographical (region), Targeting segments and
User positioning. After carrying out an in depth market study, Titan identified three different
specific market segments for its watches. The segments were arrived at using benefit and income
level as the bases.
· The first consisted of the high income/ elite consumers who were buying a watch as a
fashion accessory. They were also willing to buy a watch on impulse. The price tag
did not matter to this segment.
· The next segmented consisted of consumers who preferred some fashion in their
watches but to them price did matter.
· The third segment consisted of the lower income consumers who saw a watch mainly
as a time keeping device and bought mainly on the basis of price.
FasTrack, Raga, Sonata, Xylys, Nebula and Flip are sub-brands within Titan that are aimed
at the youth, men, women and children Sonata is the value for money watch brand from Titan
industries. It is targeted at consumers seeking durability and value with a clear positioning of “No
compromise watch”.
FasTrack was positioned as a youth brand. The young Indian racing driver Narain
Karthikeyan was the brand ambassador. The company used focused distribution supplementing its
watch outlets with youth focused outlets like music stores and internet café’s for FasTrack.
Titan targeted its Raga watches at women in the premium segment which gave them the feeling
of intimacy. The company realized that more women were wearing watches for functions. It offered
slimmed down and sleeker watches for women. The Raga range remained for more special reasons,
like marriages or parties.
Xylys comes from the House of Titan, is targeting a new generation of achievers who are looking
for symbols to reflect their lifestyle, attitude, moods and beliefs.
Nebula-precious jewellery watches from Titan. It is a collection of intricately carved designs for
women inspired by floral patterns and these watches are engraved with beautiful patterns in gold and
precious stones. This is for the premium segment.
Titan Edge and Titan Steel are the mainstream Titan products which enhance the brands image
of leadership, innovation and pride. Titan is considered to have one of the successful segmentation and
targeting.
Titan adopted a strategy of focus. Titan tries to achieve competitive advantage by optimizing
its strategy in the different market segments.
BCG MATRIX- AMUL
CASH COWS:
There are three products of Amul that fall under cash cow category, the first being Amul Milk and the second being
Amul Butter and third is Amul Cheese.
The products hold high market share in these not so fast-growing industries.
Owing to the limited chances of industry growth, Amul is introducing a number of new product variations for different
customer segments so as to maintain its market leadership.
For Example: Apart from its basic version of Butter and Milk, Amul also launched, Amul Butter Lite, Amul Tazza
Milk and Amul Gold Milk to target customers who are more health conscious.
STARS:
Amul Ice cream and Amul Ghee are two products that can be considered as Stars of the company. These are the
products which have a high market share and holds a good potential to grow in the future as well.
QUESTION MARK:
Amul lassi has been marketed with the aim to increase the market share and compete with the other beverages available
to the market.
Considering the increasing interest and demand for healthy products and beverages, the healthy milk from Amul poses
a great potential to grow in the near future with a condition that it is marketed well.
DOGS:
Dogs are those products that have low growth or market share and have a very limited chance of growing into a
profitable business unit for the company.
Amul Chocolates, Amul Cookies, and Amul Pizza are few products which can be considered as Dogs for Amul.
Due to the heavy competition and limited innovation that these product categories face, it’s becoming difficult for
Amul to gain market share for these products and make them a viable revenue generator.
ANSOFF MATRIX - COCACOLA
Market Penetration: (EXISTING Market, EXISTING Product)

This strategy involves an attempt to increase market share within existing industries, either by selling more product to
established customers or by finding new customers within these markets – typically by adapting the ‘Promotion’ element
of the Marketing Mix. Due to the incredible strength of Coca-Cola’s brand, the company has been able to utilise market
penetration on an annual basis by creating an association between Coca-Cola and Christmas, such as through the infamous
Coca-Cola Christmas advert, which has helped boost sales during the festive period.
Product Development: (EXISTING Market, NEW Product)
This involves developing new products for existing markets by thinking about how new products can meet customer needs more
closely and outperform competitors. A prime example of this was the launch of Cherry Coke in 1985 – Coca-Cola’s first extension
beyond its original recipe – and a strategy prompted by small-scale competitors who had identified a profitable opportunity to add
cherry-flavoured syrup to Coca-Cola and resell it. The company has since gone on to successfully launch other flavoured variants
including lime, lemon and vanilla.
Market Development: (NEW Market, EXISTING Product)
Thirdly, the market development strategy entails finding a new group of buyers for an existing product. The launch of Coke Zero
in 2005 was a classic example of this – its concept being identical to Diet Coke; the great taste of Coca-Cola but with zero sugar
and low calories. Diet Coke was launched more than 30 years ago, and whilst more females drink it every day than any other soft
drink brand, it came to light that young men shied away from it due to its consequential perception of being a woman’s drink. With
its shiny black can and polar opposite advertising campaigns, Coke Zero has successfully generated a more ‘masculine’ appeal.
Diversification: (NEW Market, NEW Product)
This involves the production of a new category of goods that complements the existing portfolio, in order to penetrate a new but
related market. In 2007, Coca-Cola spent $4.1 billion to acquire Glaceau, including its health drink brand Vitaminwater. With a
year-on-year decline in sales of carbonated soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading
less-sugary future – so has jumped on board the growing health drink sector.
PORTERS FIVE FORCE MODEL - WATCH
1.Supplier Power: Titan has its own production facilities for which it has invested roughly 120 crore
rupees over the years, the manufacturing capacity of which is 6 million units. Also there has been a
rise of low cost producers in China & Taiwan which has provided an opportunity for watch makers to
outsource watches at low cost, just as Titan has done to outsource the components for Dash. Due to the
large supply of watch movements available, there is little supplier power in the watch market.
2.Buyer Power: The Indian watch buyers are very price sensitive, especially in the lower end of the
market. There is still a huge untapped market in India with market penetration of only 20 units per
thousand people while the world average is more than 100. At the same time there are a segment of
people who are willing to pay a premium for watches with good performance and with a recognized
brand name. So understanding the buyers’ preferences is very crucial in this industry in order to gain
a substantial market share.
3.Entry Barriers: The Indian watch market in the recent years has shown a dramatic increase in the
number of brands available in the market due to removal of quantitative restrictions. So the new
entrant has to have an offering, which can be positioned and differentiated from the other players in
the market. This could be either price or functional or emotional appeal. So the prime barrier for
entry, in the current context, for a new entrant is to build a brand image and price competitively.
4.Threat of Substitutes: There are no such substitutes to watch as a product. However, in terms of the
companies offering various variations for watches such as pendant watches and jewellery watches,
some sort of substitution has developed. Rich consumers prefer to purchase watches more as a fashion
accessory rather than simply for its typical use.
5. Degree of Rivalry: There are many companies in the Indian watch market, however, the product
ranges offered by them are manifold. This makes the competition very stiff. Also at the lower end of
the market it is basically the Value for Money, which differentiates the players. . Titan Ltd., the
largest company in terms of market share in the organized sector has faced losses in the quarter
ended June 2001 despite increase in the market share due to macroeconomic situation. HMT faced a
similar situation when Titan was introduced in the 1980s leading to a sharp fall in its market share.
PRODUCT LIFE CYCLE- MARUTI SUZUKI
1. Introduction stage:
When the product is launched onto the market sales may start slow or increase relatively quickly.
Advertising may be vigorous at this stage also.
During this period of introduction, promotional expenses bear the highest proportion of sales."The
product's costs rise sharply as the heavy expense of advertising and marketing any new product begins
to take its toll.
v For cars like Alto K10 and kizashi market share is slight but marketing costs are high.
2. Growth stage:
If the product is popular with consumers, then sales will start to rise. It may be a rapid growth or a
slower one. Rapid growths than fall away just as quick are called 'Fads'.
Advertising is often still heavy at this point.
v Swift desire, Zen Estillo and SX4 are characterized by rapid growth in sales and profit.
3. Maturity stage:
Once the product is well established and consumers are satisfied, then the product is widely accepted
and growth slows down. Before long, however, a successful product in this phase will come under
pressure from competitors. The producer will have to start spending again in order to defend the
product's market position or introduce extension strategies.
It may only be in the Maturity stage where companies will received a return on their original
expenditure and investment due to potentially high start up and development costs.
v In case of Alto Wagon r and Swift competition is and any significant move is likely to be
copied by competitors.
4. Decline stage:
Sooner or later sales fall due to changes in consumer tastes or new choices available from competitor's products.
Again, extension strategies may be open to the company to keep the product alive.
v Market for Baleno and Esteem is shrinking thus reducing the overall profit.
PRODUCT LINE- PEPSICO

MARKET CHALLENGER
· Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low
price with the same level of the quality as that of other competitors in the market.
· Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “
Sampoorna” for the rural people and outshine the other coloured TV players who had a less focus
on these areas.
· Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention
to outshine the other.
· Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well
before the Coca Cola’s mineral water brand.
· Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to
harass each other. When the coca-cola was the official partner of the world cup, the Pepsi counter-
attacked it by using the punch line “ Nothing official about it”.
MARKET LEADER
Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also in marketing they enjoy
beverage of world-class marketing is what makes Coca-Cola the world leader in creative communication.
MARKET NICHER
· End user speacilist: Tennispoint All tennis needs are provided by the firm
· Vertical level speacilist: Heavy Transport firms
moving heavy machinery and loads.They have knowledge of alerting police, closing of roads,etc
· Customer size speacilist: Bangalore malls like Bangalore central mall
· High footfall (1000 +) – garuda and forum malls
· Medium footfall (501-999)- central mall & majestic street
· Small footfall (<501)- hong kong bazaar & shangai bazaar
· Specific customer speacialist: High performance carburetors to specific brand like BMW, Porche, Ferrari
· Product /Product line speacialist: Amul offers a series of closely related products such as milk ,butter ,ghee
,yoghurt ,ice-cream, chocolates, etc
MARKET FOLLOWER
· Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from each
other by changing the style of the automobile. Adapters can soon become leaders as well because they can adapt, learn
and make a better product than the higher competition.
· Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution to
India but was soon imitated by Videocon, Airtel, Reliance and others.
· Cloning: if you get watches made from Rado as Rodo, or bags of Gucci, as GUCCA, than that’s cloning.
· Counterfeiter: Shoes from Reebok and Adidas as well as numerous other products in the market.
PRICING STRATEGIES
Premium Pricing :
Branded unleaded petrol is sold at a higher price than regular unleaded petrol.
The consumer never gets to test if the branded is better, yet he buys the
branded offering thinking if it’s expensive, it must be better.
Penetration Pricing :
Jio used penetration to induce a trial.
Economy Pricing:
Aldi uses this no-frills economy pricing strategy where it operates small
stores, only sells products which have a good demand, keep products in their
original shipping containers, and even charges the customers if they ask for
carry-bags.
Price Skimming :
Smartphones (both iPhones and Android) are introduced in the market at a
higher price, but the price is reduced as the time passes.
LG (door cooling) is another example.
Freemium pricing:
Candy Crush Saga is a great example of freemium pricing strategy where the game is provided for free but a price is
levied if you want more lives to play.
BCG MATRIX- AMUL
CASH COWS:
There are three products of Amul that fall under cash cow category, the first
being Amul Milk and the second being Amul Butter and third is Amul Cheese.
Owing to the limited chances of industry growth, Amul is introducing a number of

new product variations for different customer segments so as to maintain its market
leadership.
For Example: Apart from its basic version of Butter and Milk, Amul also launched,
Amul Butter Lite, Amul Tazza Milk and Amul Gold Milk to target customers who are
more health conscious.
STARS:
Amul Ice cream and Amul Ghee are two products that can be considered as Stars of
the company. These are the products which have a high market share and holds a good
potential to grow in the future as well.
QUESTION MARK:
Amul lassi has been marketed with the aim to increase the market share and compete
with the other beverages available to the market.
Considering the increasing interest and demand for healthy products and beverages,
the healthy milk from Amul poses a great potential to grow in the near future with a
condition that it is marketed well.
DOGS:
Dogs are those products that have low growth or market share and have a very limited
chance of growing into a profitable business unit for the company.
Amul Chocolates, Amul Cookies, and Amul Pizza are few products which can be
considered as Dogs for Amul.
Due to the heavy competition and limited innovation that these product categories
face, it’s becoming difficult for Amul to gain market share for these products and
make them a viable revenue generator.

STPD: DABUR
• Segmentation :-
(a) Dabur segmented people based on psychographic segmentation.
(b) Customers are divided into who want natural and ayurvedic toothpaste products rather than any
other toothpaste which has chemicals especially Fluoride, for which leading brands are Colgate,
Pepsodent, etc.
(c) It has also segmented the market for kids, adults and senior citizens.
• Targeting :-
It targeted their customers in different categories and designed products.
(1) Babool- yellow teeth, swollen gums, tooth ache, food lodgement, foul odour, extensive pain while
eating.
(2) Meswak- cavities & teeth misalignment, teeth sensitivity, bleeding gums, bad breath, teeth
discoloration, tooth decaying, chipped or broken teeth caused due to injuries.
(3) Dabur RED- tooth decaying, dryness of mouth, tooth loss, gum diseases.
• Positioning :-
Toothpaste containing ayurvedic ingredients are effective in preventing and curing dental problems.
Dabur RED :-
(1)Keeps dental problems away
(2)It is positioned as toothpaste in budget segment.
(3)It contains 13 active ayurvedic ingredients like lavang, pudina, etc.
(2) Babool :-
The ad in 2005(which had Vivek Oberoi in it) said,-“Begin a great day, the babool way” [Subah
babool tum jo karo toh, din yeh tumhara ho].
It is a natural toothpaste packed with beneficial medical herbs of Babool tree; Acacia
• Differetiation :-
[Old is gold- Dabur RED is oldest traditional product and dabur RED toothpaste has become a ₹100
crore brand within just 5 years of its establishment ] A non-fluoride toothpaste.
The biggest competitor of Dabur is Himalaya. Dabur differentiates itself by using old age traditional
herbs like Babool, Neem, Meswak, etc which have been used in ancient India since Vedic age.
New Product Development-Patanjali
Unlike most of the typical FMCG company practices, Patanjali has never been into any
formal market research to find out what product should they come up with or what
market they should enter. Rather they believe in the strategy of making the products first
and then taking it to the market. Many a times, there has been instances where they
entered into a new product category which some other company has been doing it for
years. Low price, purity and innovation are the three main drivers of the product
development strategy of Patanjali. A good example of this can be of the Patanjali Amla
Candy. Before it was launched, there were numerous amla products in the market, hence
the market can be said to be existing. But this particular amla product in the form of candy
was unheard of before, which is a truly innovative move from the company. As for the
low price and purity aspects, this product qualifies them too. The amla farmers were
facing loss at a point of time since the market was very small, though amla has many
health benefits. Ramdev took a risk and started promoting the health benefits of amla
leveraging his huge following. This promotion was shortly followed by the product launch
of amla juice and amla candy, which was a hit product in the market. Another example
where Patanjali delivered in the lines of purity can be the Desi Ghee. There has been
always an inherent concern among the consumers about the availability of pure ghee.
This need of the customers did not require an extensive market research to develop a
product based on this line since Patanjali always worked form the base of the pyramid and had a
connect with the consumers and hence came up with this product which
became their best-selling product and accounted for a 37% of their sales in 2015 which
amounted to Rs 442 crore of sales revenue. Hence, it is clear that Patanjali is using Product
Development strategy i.e. developing new products (here in this case, making Ayurveda
variants of products) in an existing market. Their yoga sessions & camps is an existing
service in an existing market, but since it is vital for Patanjali, they will be looking for
Market Penetration by this. By targeting the youth, they want to enter into a new market
with their existing products & service. This strategy can be a part of their Market
Development plan. Finally, they are Diversifying by bringing in new products in new
market like cosmetics, health drinks etc.
Promotion and Insights
ICICI life insurance (Bande ache hai)
The brand building in life insurance — a category that's compounded by the multiple options like protection, retirement
and child welfare to name just a few. Tying all this in with an overarching corporate theme makes it a fairly complicated
and a knotty exercise.
ICICI Prudential, "The brand, in this category, is built bottom up through multiple on-ground customer experience
moments. These experiences are hard to standardise and regulate."
the campaign team decided to build an emotional relevance for the customer by putting the simple acts of goodness of the
family man as the pivot (in the context of protection). Very similar to the role life insurance plays.
Campaign looked for the magical intersection point where the customer life-truths met and resonated with the role of the
brand, and found this in the understated everyday caring role of the family man." The creative agency was told that
ICICI Prudential wants to be a brand that men love. As simple as that."
Thus the communication had to be all about celebrating men. These are men who do not make a big deal or thump their
chest to constantly reiterate that they care. They just do things and don't even let others know.
Pepsodent
It is positioned as long-lasting protection against germs, it could fight germs for hours after brushing.
Research suggested that mothers worry about what their kids eat, especially when they are away from
them & it impacts on their dental health. Using that insight, Pepsodent launched the “Dishoom
Dishoom” ad, that said, “Let Pepsodent fight germs for you”
Their another campaign has Bollywood superstars & acting father Shah Rukh Khan playing
the cool
papa to his son pappu, bringing forth the benefits of brushing with the new Pepsodent.
Pappu & Papa Ads took Pepsodent’s philosophy of brushing - an otherwise mundane task - into an
interesting fun activity further by building an importance of oral hygiene which is at times neglected
by
parents. The TV campaign narrates interested short stories between “Papa & Pappu” where Pappa
uses
humour and storytelling to educate Pappu on the importance of brushing everyday twice. With such
effective ad campaigns, pepsodent made about 12 lakh kids to brush the teeth at night (with pepsodent
only) which reduces 30% of tooth decay.
ANSOFF MATRIX – COCA COLA
Market Penetration: (EXISTING Market, EXISTING Product)
Examples of Cadbury are-Dairy Milk
Perk
Bournvita
Product Development: (EXISTING Market, NEW Product)
Bournville
Chockis
Market Development: (NEW Market, EXISTING Product)
Candy
Diversification: (NEW Market, NEW Product)
Gems
Eclairs
PRODUCT LINE EXTENSION- PEPSICO

PRODUCT LIFE CYCLE -Maruti 800
Introduction Stage: 1983-1986
· First car imported and sold in 1983.
· Cheapest car in market.
· Huge gap between demand and supply.
· The company took 3years to clear the resulting waiting list.
Growth Stage:1987-1996
· Ensures people’s expectations match product promise.
· Increase in production and sales.
· Increase in profits.
· No threat of competition.
Maturity Stage:1997-2000
· Sales touched 2,00,000 in 1999.
· Repositioning of Maruti products.
· 40 million 2-wheeler owners targeted.
· Entry of competitors such as General Motors, Ford and Tata.

Decline Stage:2003-present
· Heavy competition from i10, Spark.
· Drastic decrease in sales.
· Just 33038 units sold in 2009-2010.
· Withdrawn from 13 cities including metros.
PORTERS 5 FORCES-Titan
1.Supplier Power: Titan has its own production facilities for which it has invested
roughly 120 crore rupees over the years, the manufacturing capacity of which is 6
million units. Also, there has been a rise of low-cost producers in China & Taiwan
which has provided an opportunity for watch makers to outsource watches at low cost,
just as Titan has done to outsource the components for Dash. Due to the large supply
of watch movements available, there is little supplier power in the watch market.
2.Buyer Power: The Indian watch buyers are very price sensitive, especially in the
lower end of the market. There is still a huge untapped market in India with market
penetration of only 20 units per thousand people while the world average is more than
100. At the same time there are a segment of people who are willing to pay a premium
for watches with good performance and with a recognized brand name. So
understanding the buyers’ preferences is very crucial in this industry in order to gain a substantial
market share.
3.Entry Barriers: The Indian watch market in the recent years has shown a dramatic
increase in the number of brands available in the market due to removal of
quantitative restrictions. So the new entrant has to have an offering, which can be
positioned and differentiated from the other players in the market. This could be either
price or functional or emotional appeal. So the prime barrier for entry, in the current
context, for a new entrant is to build a brand image and price competitively.
4.Threat of Substitutes: There are no such substitutes to watch as a product. However,
in terms of the companies offering various variations for watches such as pendant
watches and jewellery watches, some sort of substitution has developed. Rich
consumers prefer to purchase watches more as a fashion accessory rather than simply for its typical
use.
5. Degree of Rivalry: There are many companies in the Indian watch market,
however, the product ranges offered by them are manifold. This makes the
competition very stiff. Also at the lower end of the market it is basically the Value
for Money, which differentiates the players. . Titan Ltd., the largest company in
terms of market share in the organized sector has faced losses in the quarter ended
June 2001 despite increase in the market share due to macroeconomic situation.
HMT faced a similar situation when Titan was introduced in the 1980s leading to a sharp fall in its
market share.
MARKET CHALLENGER
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and
Amul Masti Dahi at a low price with the same level of the quality as that of
other competitors in the market.
Flank Attack: L.G has successfully made use of this strategy by introducing
the colour tv “ Sampoorna” for the rural people and outshine the other
coloured TV players who had a less focus on these areas.
Encirclement Attack: The FMCG industry applies this attack more
aggressively with the intention to outshine the other.

Bypass Attack: Pepsi adopted this strategy when it launched its mineral water
brand “Aquafina” very well before the Coca Cola’s mineral water brand.
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively
with the intention to harass each other. When the coca-cola was the official
partner of the world cup, the Pepsi counter-attacked it by using the punch line
“Nothing official about it”.
MARKET LEADER
Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business
but also, in marketing they enjoy beverage of world-class marketing is what makes
Coca-Cola the world leader in creative communication.
MARKET NICHER
· End user specialist: Tennis point All tennis needs are provided by the firm
· Vertical level specialist: Heavy Transport firms
moving heavy machinery and loads. They have knowledge of alerting police,
closing of roads, etc.
· Customer size specialist: Bangalore malls like Bangalore central mall
· Specific customer speacialist: High performance carburetors to specific brand
like BMW, Porche, Ferrari
· Product /Product line speacialist: Amul offers a series of closely related

products such as milk, butter, ghee, yoghurt ,ice-cream, chocolates, etc
MARKET FOLLOWER
· Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the
best qualities from each other by changing the style of the automobile . Adapters can
soon become leaders as well because they can adapt, learn and make a better product
than the higher competition.
· Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought
digital TV revolution to India but was soon imitated by Videocon, Airtel, Reliance and others.
· Cloning: if you get watches made from Rado as Rodo, or bags of Gucci, as GUCCA,
than that’s cloning.
Nikhil Chanshetti
PG2-71
Difference between Consumer and Customer
Customer and Consumer are often used inter-changeably by many and it’s high time that we know
the difference between Customer and Consumer to get the benefit out.
Customer
Customer is the one who buys your product/service.
In simple terms he/she is the purchase of the product/service, he pays for getting the product. A
customer may or may not use it for self.
Eg. A person buying milk is a customer, a retailer buying milk to re-sale it is a customer, a company
buying milk to serve its employee is a customer.
Consumer
Consumer is the one who uses/consumes your product/service.
It is not necessary that a consumer should purchase the product/service. If any other person buys the
product which is consumed by other person then the other person is the consumer and the buyer is
the customer.
Eg. A person drinking milk purchased by some other person is a consumer
New Product Development
Idea Generation:
To create a safe, affordable and all-weather form of transport for families.
To create an option for people who want to move from a 2-wheeler to 4-wheeler – at the price of a 2-
wheeler
Idea Screening:
A scooter with 2 extra wheels at the back?
An auto rickshaw with 4 wheels
4-wheeler car made of engineering plastic
But the market demand was for a car and not a scooter
Concept testing and development:
When people were asked as to why a 4-wheeler was an aspiration – they said that they would have
better marriage prospects.
4-wheeler had an emotional appeal, not just a practical one
Business strategy development:
Establish a factory in a tax-free zone
Get the tax advantage on infrastructure
Get the suppliers to establish a base near the factory
Get special concessions from state government

Product design and development:
Design inputs from institute of Development in Automotive Engineering, Italy
Constant design changes
Design adaption from Daewoo Matiz and Tata Indica
37 patents associated with the design of Nano
The nano is constructed of components that can be built and shipped separately to be assembled in a
variety of locations
Test marketing:
Crash testing
Testing on torture trucks
Commercialization:
Launch the product
Produce and place advertisements
Fill the distribution pipeline.
Pricing Strategies:
1. Pricing for market penetration-As a small business owner, you’re likely looking for ways to enter
the market so that your product becomes more well-known. Penetration strategies aim to attract
buyers by offering lower prices on goods and services than competitors.For instance, imagine a
competitor sells a product for $100. You decide to sell the product for $97, even if it means you’re
going to take a loss on the sale. Penetration pricing strategies draw attention away from other
businesses and can help increase brand awareness and loyalty, which can then lead to long-term
contracts.Penetration pricing can also be risky because it can result in an initial loss of income for
the business. Over time, however, the increase in awareness can drive profits and help small
businesses stand out from the crowd. In the long run, after penetrating a market, business owners
can increase prices to better reflect the state of the product’s position within the market.
2. Economy pricing-This pricing strategy is a “no-frills” approach that involves minimizing

marketing and production expenses as much as possible. Used by a wide range of businesses,
including generic food suppliers and discount retailers, economy pricing aims to attract the most
price-conscious consumers. Because of the lower cost of expenses, companies can set a lower sales
price and still turn a slight profit.While economy pricing is incredibly useful for large companies like
Walmart and Target, the technique can be dangerous for small businesses. Because small businesses
lack the sales volume of larger companies, they may find it challenging to cut production costs.
Additionally, as a young company, they may not have enough brand awareness to forgo custom
branding.
3. Pricing at a premium-With premium pricing, businesses set costs higher because they have a
unique product or brand that no one can compete with. You should consider using this strategy if
you have a considerable competitive advantage and know that you can charge a higher price without
being undercut by a product of similar quality.Because customers need to perceive products as being
worth the higher price tag, a business has to work hard to create a perception of value. Along with
creating a high-quality product, owners should ensure that the product’s packaging, the store’s
decor, and the marketing strategy associated with the product all combine to support the premium
price.An example of premium pricing is seen in the luxury car industry. Companies like Tesla can
get away with higher prices because they’re offering products, like autonomous cars, that are more
unique than anything else on the market.
4. Price skimming-Designed to help businesses maximize sales on new products and services, price
skimming involves setting rates high during the initial phase of a product. The company then lowers
prices gradually as competitor goods appear on the market. An example of this is seen with the
introduction of new technology, like an 8K TV, when currently only 4K TVs and HDTVs exist on the
market.One of the benefits of price skimming is that it allows businesses to maximize profits on early
adopters before dropping prices to attract more price-sensitive consumers. Not only does price
skimming help a small business recoup its development costs, it also creates an illusion of quality and
exclusivity when you first introduce your product to the marketplace.
5. Psychological pricing-Psychological pricing refers to techniques that marketers use to encourage

customers to respond based on emotional impulses, rather than logical ones.For example, setting the
price of a watch at $199 is proven to attract more consumers than setting it at $200, even though the
actual difference here is quite small. One explanation for this trend is that consumers tend to put
more attention on the first number on a price tag than the last. The goal of psychology pricing is to
increase demand by creating an illusion of enhanced value for the consumer.
6.Bundle pricing-With bundle pricing, small businesses sell multiple products for a lower rate than
consumers would face if they purchased each item individually. A useful example of this occurs at
your local fast food restaurant where it’s cheaper to buy a meal than it is to buy each item
individually.Not only is bundling goods an effective way to reduce inventory, it can also increase the
value perception in the eyes of your customers. Customers feel as though they’re receiving more
bang for their buck. Many small businesses choose to implement this strategy at the end of a
product’s life cycle, especially if the product is slow selling.Small business owners should keep in
mind that the profits they earn on the higher-value items must make up for the losses they take on
the lower-value product. They should also consider how much they’ll save in overhead and storage
space by pushing out older products..Geographical pricing-If you expand your business across state
or international lines, you’ll need to consider geographical pricing. Geographical pricing involves
setting a price point based on the location where it’s sold. Factors for the changes in prices include
things like taxes, tariffs, shipping costs, and location-specific rent.Another factor in geographical
pricing could be basic supply and demand. For instance, imagine you sell sports performance
clothing. You may choose to set a higher price point for winter clothes in your cold-climate retail
stores than you do in your warm-climate stores. You know people are more likely to buy the clothes
in the winter environments, so you set a higher price to take advantage of demand.
7.Promotional pricing-Promotional pricing involves offering discounts on a particular product. For

instance, you can provide your customers with vouchers or coupons that entitle them to a certain
percentage off the good or service. You could also entertain a “Buy One Get One” campaign, tacking
on an additional product as an add-on.Promotional pricing campaigns can be short-term efforts. For
instance, you may run a promotional pricing strategy over an extended holiday, like Memorial Day
Weekend. By offering these deals as short-term offers, business owners can generate buzz and
excitement about a product. Promotional pricing also incentivizes customers to act now before it’s
too late. This pricing strategy plays to a consumer’s fear of missing out.
8. Value pricing-If you notice that sales are declining because of external factors, you may want to
consider a value pricing strategy. Value pricing occurs when external factors, like a sharp increase in
competition or a recession, force the small business to provide value to its customers to maintain
sales.This pricing strategy works because customers feel as though they are receiving an excellent
“value” for the good or service. The approach recognizes that customers don’t care how much a
product costs a company to make, so long as the consumer feels they’re getting an excellent value by
purchasing it.This pricing strategy could cut into the bottom line, but businesses may find it
beneficial to receive “some” profit rather than no profit. An example of value pricing is seen in the
fashion industry. A company may produce a product line of high-end dresses that they sell for
$1,000. They then make umbrellas that they sell for $100.The umbrellas may cost more than the
dresses to make. However, the dresses are set at a higher price point because customers feel as
though they are receiving much better value for the product. Would you pay $1,000 for an umbrella?
Probably not. Thus, external factors like customer perceptions force the value pricing strategy.
9.Captive pricing-If you have a product that customers will continually renew or update, you’ll want
to consider a captive pricing strategy. A perfect example of a captive pricing strategy is seen with a
company like Dollar Shave Club. With Dollar Shave Club, customers make a one-time purchase for
a razor. Then, every month, they purchase new razor blades to replace the existing one on the head
of the razor.Because the customer purchased a DSC razor handle, he or she has no choice but to buy
blades from the company as well. Thus, the company holds customers “captive” until they decide to
break away and buy a razor handle from another company. Businesses can increase prices so long as
the cost of the secondary product does not exceed the cost that customers would pay to leave for a
competitor.
Distributor
The example is of Aashirvaad Shudh Chakki whole wheat Aata of ITC.
The MRP is Rs. 191. The company first sells it to the distributor, who at a margin of about 8% sells
it to the wholesaler who then with a margin of about 10% sells it to the retailer. Finally the retailer
sells it to the customer at a margin of about 12%. So, the prices in rupees of the different elements of
the supply chain are as follows:
Distributor Rs 139.1 (8% margin)
Wholesaler Rs 151.3 (10% margin)
Retailer Rs 168.2 (12% margin)
Consumer Rs 191
Say 2000 packets per month are sold. This is only for 1SKU(5 kg packets of wheat)
Particulars Rs
Sales Revenue 302600

COGS 278000
Transport 900
Rent 2000
Salary 800
Other expenses 100
Total Expenses 281800
Profit 20800
Promotion and Insights:
Liril advertisement: This basically targeted women of all age groups. In the olden times, when there
widely existed the system of joint families, women did not have free time for themselves. So, this
advertisement in which a woman is bathing under a waterfall using liril soap, gave all women a sense
of free time which they otherwise hardly found in a joint family. So, this advertisement instantly had
a connect with all women and thus the brand become a huge success.
ICICI Advertisement (Bande Ache Hai): This advertisement is a classic example of Segmentation. It
particularly targets all men who are the bread owners of their family. This advertisement shows
through various situations how selfless and caring all men are towards their family.
“Airtel” – airtel was always the top most. Aitel cannot grow only on the base of telecom. Therefore
they started data service. This was done from segmentation, they focused on youth. Especially the
characteristics of the youth. Social has many friends, but in real very few.
When you get addicted to data, the next step is ‘share’. ‘jo tera hai vo mera hai’ for internet.
STPD
LUX : HUL
Segmentation:
Geographical: India, Thailand, South Africa, Pakistan, China, Canada, Western Europe, Srilanka,
Bangladesh.
Demographic: Female (16-35)
Affordable
Middle income age group
Behavioural: inter-market segmentation (forming segments of consumer who have similar needs and
buying behaviour even though they are located in different countries)
Reliable and trustworthy.
Psychographic: all the class as it is affordable. Appreciate beauty and glamour.
Targeting: Urban and Suburban areas
Positioning: Using different celebrities for advertising their brand
Differentiation: to sustain in the market, they came up with lux beauty.
Soap : exotic flower petals, fruit extracts, almond and sandal
BCG Matrix
Star Question mark
Cash cow Dog

Ansoff matrix
The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze
and plan their strategies for growth. The matrix shows four strategies that can be used to help a firm
grow and also analyzes the risk associated with each strategy. The four strategies of the Ansoff
Matrix are:
• Market Penetration: It focuses on increasing sales of existing products to an existing market.
• Product Development: It focuses on introducing new products to an existing market.
• Market Development: Its strategy focuses on entering a new market using existing products.
• Diversification: It focuses on entering a new market with the introduction of new products.
Porters 5 forces
Porters 5 forces For Maggie:
Competitive Rivalry – High :
Facing Competition from many other numerous brandsa like Knorr, Sunfeatst
No Product differentiation
Market share hjad been declined due to ban which benefited other competitors
Threat of new Entrant – High :
Entry barriers are low, hence easy for new entrants
No extensive investment
Cheap raw material
Bargaining power of supplier – Low :

Required raw material like sugar, wheat, spices, packaging are available in abundance
Raw materials are readily available
Switching cost for suppliers is low
Bargaining power of Buyers – High :
Buyers can switch from one brand to another in no time, Hence switching cost for buyers is low
which is a threat for Maggie
Maggie has a strong brand loyalty which reduces the threat intensity
Threats of Substitute – High :
Health awareness in on rise in public, hence there is a strong threat of healthy substitutes
Also ready to eat pasta, soups act like substitute
Product life Cycle
MARUTI 800
Introductory Stage(1983-1986):
-Maruti 800 first launched in Indian Market in December 1983.
-It’s a collaboration between Indian State owned Maruti and Suzuki motor Japan.
-It was the most economical car in the Indian market.
-The first car was sold to Harpal Singh for Rs.48,000/- and received the keys from the then Indian
Prime Minister Indira Gandhi.
Growth Stage(1987-1996):
-It came up with new features like the AC version and music systems in the car which was a novelty.
-Sales increased by 852 units to 31,314 units.
-First export began in 1857.
Maturity Stage(1997-2002):
-Launched revamped version of Maruti 800 X with new engine, shock absorbers, coil spring
suspensions, but this model lost their sales gradually.
-Entry of competitors such as Tata, Ford, General Motors made life tough for the 800.
Decline Stage(2002-Present):
-Due to heavy competition from competitors like Hyundai i10, Chevrolet Spark and Maruti Suzuki
Swift, sales of Maruti 800 drastically decreased.
-Buyers attracted to better luxury small cars available in the market.
-Minimal sales existent in rural and semi-urban areas.
-In 2012, Maruti introduces Alto 800 in place of the 800.
Consumer behaviour
Process :
Recognition of needs and wants
Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty
winter coat if she’s going to survive the snow and lower temperatures.
Information Search :
The customer searches “women’s winter coats” on Google( Public search) to see what options are out
there. When she sees someone with a cute coat, she asks them where they bought it(Personal Search)
and what they think of that brand(Experiences Search).
Evaluation of Choices
The customer compares a few brands that she likes. She knows that she wants a brightly coloured
coat that will complement the rest of her wardrobe, and though she would rather spend less money,
she also wants to find a coat made from sustainable materials.
Purchase
The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand
uses sustainable materials and asking friends for their feedback, she orders the coat online.
Post purchase Evaluation
Did the purchase meet the need the consumer identified?
Is the customer happy with the purchase?
How can you continue to engage with this customer?
Product line extension
Beauty care
Cosmetics - Cover girl, Max, Olay
Deodrants : - Old spice, Secret sure
Hair care : - Head and Shoulders, Pantene
Skin care :- Camay, Ivory, Clearsil, Noxzema, safeguard
Food and beverages

Crisco, pringles, hawaian punch, tender leaf tree
Health care
Vitamin c drops, vicks, vaporub, DayQuil, crest
Laundry
Bleach : biz
Dish care : cascade, dawn, ivory dish, joy
Hard surface cleansers : comet, mr. clean, spic and span
Laundry : tide
other
Pampers, tampax
Brand Extension
Brand extension refers to the expansion of the brand itself into new territories or markets.
For example – Titan entering into perfumes via titan skin.
Product Mix -
Product mix, also known as product assortment, is the total number of product lines that a company
offers to its customers. The product lines may range from one to many and the company may have
many products under the same product line as well. All of these product lines when grouped together
form the product mix of the company.
Width
The width of the mix refers to the number of product lines the company has to offer.
For e.g., If a company produce only soft drinks and juices, this means its mix is two products wide.
Coca-Cola deals in juices, soft drinks, and mineral water and hence the product mix of Coca-Cola is
three products wide.
Length
Length of the product mix refers to the total number of products in the mix. That is if a company has
5 product lines and 10 products each under those product lines, the length of the mix will be 50 [5 x
10].
Depth
The depth of the product mix refers to the total number of products within a product line. There can
be variations in the products of the same product line. For example – Colgate has different variants
under the same product line like Colgate advanced, Colgate active salt, etc.
Consistency
Product mix consistency refers to how closely products are linked to each other. Less the variation
among products more is the consistency. For example, a company dealing in just dairy products has
more consistency than a company dealing in all types of electronics.
Example – product mix of HUL –
Market Nichers
End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a
long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells
school supplies, kitchen goods, and gardening tools, and many more things for the lefties.
Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s

production and target audience was initially strictly restricted to the city of Mumbai.
Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts
and celebrates jewish faith.
Product specialist: UNTUCKit brand has created a new line of products for people who do not like
tucked shirts. It gives you a feel of a tucked shirt without actually tucking it.
Specific customer specialist: Weber carburettor is a company which provides carburettors to only
high end cars like Porsche, Ferrari, BMW.
Market Leader
Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk
shampoos and gave heavy promotions through price reduction.
Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore
Indian-made brand Vim in a competitive dish wash market. It was able to check the attack of
competitors through product innovation, attractive public campaigns, road shows and public
relations.
Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the
market share of HMT watches in the early 1990s.
Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets,
TVS decided to expand its coverage to Ceat tyre’s hub in the north and west of India through
innovative campaigns like road rallies, road shows and attractive public campaigns.
•
Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound
and outbound tour operator, flouriest and so on. Such diversification into related areas comes under
mobile defence strategies.
Contraction Defence: For example, HUL decided to concentrate on its core business areas, that
is, soaps and detergents, and has emerged as the clear leader in the toilet industry.
Market Challenger
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a
low price with the same level of the quality as that of other competitors in the market.
Flank Attack: L.G has successfully made use of this strategy by introducing the colour TV “
Sampoorna” for the rural people and outshine the other coloured TV players who had a less focus on
these areas.
Encirclement Attack: The FMCG industry applies this attack more aggressively with the
intention to outshine the other.
BypassAttack: Pepsi adopted thisstrategy when it launched its mineral water brand “Aquafina”
very well before the Coca Cola’s mineral water brand.
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention
to harass each other. When the coca-cola was the official partner of the world cup, the Pepsi counter-
attacked it by using the punch line “ Nothing official about it”
Market follower
Adapter: Cars like Maruti 800, Alto, Zen, brio,etc are all adapters and they adapt the best qualities
from each other by changing the style of the automobile.Adapters can soon become leaders as well
because they can adapt, learn and make a better product than the higher competition.
Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital
TV revolution to India but was soon imitated by Videocon, Airtel,Reliance and others.
Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, than that’s cloning.
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other
products in the market which are counterfeited
CHARU JAIN
ROLL NO 72 PG2
MARKETING ASSIGNMENMT
Customer & Consumer –
Customer is the one purchasing the product/service not necessarily the end user, consumer is the one
who actually consumes it at the end. Example- A mother in a family purchased milk from a store for
her child, the child consumes it so the mother is the customer and the child is the consumer.
New product development- Project Shakti
Idea generation- Project Shakti, created as a response to Unilever’s desire to tap into new markets
within India. Unable to reach most small villages due to poor transport and supply chain
infrastructure, along with challenges of selling products to a population with little or no disposable
income, Unilever saw the need to innovate.
Idea screening- Training female entrepreneurs in rural India who otherwise sit idle and sell Unilever
product to the village market while supporting independence of women( social aspect), promoting
the idea of a women earning which doubles the family income. Business aspect- increasing the sales
area.
Concept development & testing- Villages with 2000-3000 population selected, personnel of HUL
approaches SHG’s and selects Shakti Amma, 1 shakti entrepreneur for 1 village, shakti dealer places
initial order of 15000/- , products are sold at low prices from door to door or petty shops at home.
Business analysis- Indirect coverage (1 stockist different villages), direct coverage (factory-depot-
stockist-trade), streamline (distributors connects the start seller product).
After training amma has invests 20,000/- which is used to buy products, sells door to door, she makes
10% profit on average. Rural consumers are price sensitive, so sachet and small packs of premium
products sold, price doesn’t exceed 5/-.
Product development- HUL’s product like lux at 5/-, lifebuoy at 2/-, surf excel sachet at 1.5/-, ponds
talc at 5/-, brooke bond taaza tea at 5/-.
Test marketing- launched in Nalgonda district of Andhra Pradesh in 2000.
Commercialization- In 2000 vouched on to reach 100 million customers by 2006 which they have
reached now, social objective- to provide sustainable livelihood opportunities for underprivileged
rural women.
Pricing strategies-
1) Skimming- SONY entering with colour- television in India, 21 Wega base model at rs.18,999 in 2001
reduced to rs.12990 in 2004-05.
2) Penetration- Xiaomi entered with cheaper smartphones and took over Samsung market share.
3) Dynamic pricing- make my trip adjusting prices to meet different needs of the individual.
4) Competitive pricing- Seeing the competitor sellers offer products at as low as possible with
accompanied services, like mobile phones.
5) Product line pricing- HUL offers shampoos like Sunsilk and Dove for price conscious
consumers.
6) Optional product pricing- The basic price of a maruti Suzuki 800 car is different from the upper
models offering functionalities like automatic windows, alloys, infotainment system etc.
7) Captive product pricing- Gillette offer razors at low prices, but makes huge amounts of money from
the razor cartridges.
8) Bundle pricing- MCD value meals
9) Discount pricing- Advertisement of discount on early bird offer by coaching institutes
10) Segmented pricing- On DP’s restaurant, Matunga ,student card discount 10%
11) Psychological pricing- Bata shoes priced starting from 499/- not 500.
12) Promotional pricing- Amazon prime priced at 1000/- but gives 499/- youth offer.
13) Geographical pricing- Nandini milk(produced in south) priced at 56/- in south and 60/- for outside
south
14) Economic pricing- airlines, sell the first seats at low prices then as soon as demand increases their
price increases.
15) Tender pricing- based on maximum number of bids like paintings.
16) Aggressive pricing- TATA harrier priced at 14-16 lacs but came out at 12 lacs.
17) Differential or surge-
18) Freemium- Voot online entertainment website it was initially free.
19) Time pricing- happy hours offered by restaurants and bars.
Distribution-
Strategies-
Intensive – mint, candies
Selective- computers
Exclusive- Cars, Armaani, Gucci
B2B- MCD, Nivea
B2C- IBM (go big go home)
Promotion & insights-

1) Liril waterfall advt- based on insights that before 1991 women had no freedom then same thing
continued after 1991 also, a lady bathing under a waterfall, insight -escaping, women wanted to
escape from their houses.
2) Idea hunny bunny advt- idea did not get a license for all areas so people thought it’s a local network, &
would it work outside? So idea came up with this song ‘hello hunny bunny’, insight- national, it can
work all over India.
3) Airtel- song ‘har ek friend zaruri hota hai’ ‘jo tera hai voh mera hai’ insight-realised future of growth
was data, youth was the target.
4) ICICI- advt- ‘per bande ache hai’ insight- women always talked about in advt but a man is selfless.
5) COCO COLA- ‘thanda matalab COCO COLA’ insight- distribution, even in villages it can be kept cold
when refrigerator not there.
STPD – Colgate strong teeth
SEGMENTATION-
TARGETING-
MAX FRESH- for people who want fresh breath
ACTIVE SALT- for tooth cavity prone people
COLGATE TOTAL- for all round oral care
COLGATE SENSITIVE- people with sensitive teeth
COLGATE WHITENING- people suffering from plaque
COLGATE 2 IN 1- People desiring strong teeth and fresh breath

POSITIONING-
Toothpaste that provides strong teeth, decay protection, germ protection, and fresh breath
Toothpaste for different taste and segment
Tagline- ‘Trusted by generations to make the teeth stronger’
DIFFERENTIATION-
COLGATE BRAND synonymous with oral care
Compared to competitor P&G, Colgate offers larger assortment of oral care products in a wide range of prices.
Larger market share so allows it to offer more competitively priced products.
BCG matrix - Nestle
The main purpose of the BCG Matrix is therefore to make investment decisions on a corporate level.
ANSOFF MATRIX- COCO COLA

Porter’s 5 forces- AMUL
Product life cycle-
Introduction growth maturity decline
Product Basic product Add New segment Nokia windows

and Symbian
The CONCEPT Nokia E Nokia phones
PHONES SERIES SYMBIAN & N
SERIES
Price slight
Skimming Rs.1000-
/ slight 6000 Rs.2000-

penetration
Rs.999 Rs.999-4000 8000
Place extensive extensive max selective
selective selective extensive exclusive
promotion high High but slight competitive stop

lower
Consumer buying behaviour-
Buying Process:
1. Problem Identification:
This step is also known as recognizing of unmet need. The need is a source or force of buying behaviour.
Buying problem arises only when there is unmet need or problem is recognized. Need or problem impels an
individual to act or to buy the product. Buyer senses a difference between his actual state (physical and
mental) and a desired state. The need can be triggered by internal or external stimuli. Internal stimuli include
basic or normal needs – hunger, thirst, sex, or comfort; while external stimuli include external forces, for
instance, when an individual watch a new brand car, he desires to buy it. Marketer must identify the
circumstances that trigger a particular need. He can collect information from a number of consumers
regarding how stimuli spark an interest in products. Based on information, he can develop marketing
strategies to trigger consumer interest.
2. Information Search:
Interested consumer will try to seek information. Now, he will read newspapers and magazines, watch
television, visit showroom or dealer, contact salesman, discuss with friends and relatives, and try all the
possible sources of information. Mostly, the consumer can try one or more of following sources of
information:
i. Personal Sources:
They may include family members, friends, package, colleagues, and relatives.
ii. Commercial Sources:

Advertising, salesmen, dealers, package, trade show, display, and exhibition are dominant commercial
sources.
iii. Public Sources:
Mass media (radio, TV, newspapers, magazines, cinema, etc.), consumer- rating agencies, etc., are main public
sources.
iv. Experimental Sources: They include handling, examining, testing, or using the product. Selection of
sources depends upon personal characteristics, types of products, and capacity and reliability of sources. Each
information source performs different functions in influencing buying decision. By gathering information
from relevant sources, the consumer can learn about different products and brands available in the market.
Note that consumer will not collect detail information on all the brands available in the market. He scrutinizes
all the brands in sequence, like total (brands) set to awareness set to affordable set, and to choice set.
Consumer collects information only on limited brands, say, choice set. Marketer must try to get his brand into
the prospects’ awareness set and choice set. Moreover, the company should identify sources and their relative
importance. Company must ask the consumers regarding types of sources they exercise. They can elicit
valuable information about sources they normally use and their relative value. On that basis, effective
communication can be prepared for the target market.
3. Evaluation of Alternatives:
In the former stage, the consumer has collected information about certain brands. Now, he undergoes
evaluation of brands. He cannot buy all of them. Normally, he selects the best one, the brand that offers
maximum satisfaction. Here, he evaluates competitive brands to judge which one is the best, the most
attractive. Evaluation calls for evaluating various alternatives with certain choice criteria. Following criteria
are considered while evaluating alternatives
i. Benefits offered by the brands
ii. Qualities, features or attributes, and performance
iii. Price changed by various brands
iv. History of brands
v. Popularity, image or reputation of brands
vi. Product-related services offered by the brands, such as after-sales services, warrantee, and free installation
vii. Availability of brands and dealer rating.
Different criteria are used for different products. For example, if a person wants to purchase a motorbike out
of Enfield Bullet 350; TVS Victor, TVS Centra, Suzuki Ferro; Hero Honda Spender, Ambition, and CBZ;
Kawasaki Bajaj Boxer, Pulsar and Caliber; LML Freedom, etc., he will consider following criteria:
i. Price
ii. Pick-up and performance
iii. Facilities and comfort
iv. Gear-transmission system

v. Get-up/appearance
vi. Speed per hour
vii. Average per liter petrol
viii. Maintenance costs
ix. Image, status and novelty
x. Safety
xi. Resale value
xii. Services, guarantee, warrantee, etc.
The brand that meets most of the above conditions reasonably is more likely to be preferred. Marketer should
highlight superior features of his brand. Some companies also advertise comparative table to help consumers
evaluate various brands. For example, Yamaha, Maruti, and Hyundai provide comparative table in
newspapers to show how the bike/car is superior to other brands.
4. Purchase Decision:
This is the stage when the consumer prefers one, the most promising band, out of several brands. The former
stage helps consumers evaluate various brands in the choice set. The brand that offers maximum benefits or
satisfaction is preferred. Simply, the most attractive brand, that can offer more benefits in relation to price
paid, is selected by comparing one brand with others. Comparison shows superiority/inferiority of the brands.
Now, consumer makes up his mind to purchase the most preferred brand. However, three factors further
affect whether buying intension result into actual purchase. More clearly, the consumer’ decision to avoid,
modify, or postpone a purchase decision is influenced by these factors. The first factor is attitudes of others.
The impact of other persons’ attitudes depends on degree of their negative attitudes toward the consumer’s
preferred brand, and consumer’s degree of compliance with other persons’ wishes. The second factor is
unanticipated situational factors. Purchase intension may change due to certain unanticipated situational
factors like price hike, loss of job, family income, major medical expenses, non-availability of the preferred
brand, or such similar factors. The third and the last factor is consumer’s perceived risk. Degree of risk
depends on price, attribute uncertainty, entry of a new superior product, and his self-confidence. Sub-
decisions in Purchase Decision:
Consumer’s buying decision involves following five sub-decisions:
i. Brand Decision:
For example, CBZ (model) motorbike of Hero Honda.
ii. Vender Decision:
For example, XYZ Hero Honda Showroom.
iii. Quantity Decision:
For example, one motorbike.
iv. Timing Decision:

For example, on 1st December, 2007.
v. Payment Decision:
For example, by cash.
5. Post-purchase Decisions:
Consumer buys the product with certain expectations. Though he decides very systematically, there is no
guarantee of a complete satisfaction. There is always possibility of variation between the expected level of
satisfaction and the actual satisfaction. His subsequent behaviour is influenced by degree of
satisfaction/dissatisfaction. Marketer must monitor the post-purchase experience of the buyers that includes:
a. Post-purchase Satisfaction
b. Post-purchase Action
c. Post-purchase Use and Disposal
Roles played by a Consumer:
i. Initiator
A person who first suggests the idea of buying the particular product or service.
ii. Influencer:
A person whose view or advice influences the decision.
iii. Decider:
A person who decides on any component of a buying decision; whether to buy, what to buy, how to buy, or
where to buy
iv. Buyer:
The person who makes the actual purchase.
v. User:
A person who consumes or uses the product or service.
A company needs to identify these roles because they have implications for designing the product, determining
messages, arid allocating the promotional budget.
Product line extensions- Fair & Lovely

Market leaders-
Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk shampoos and
gave heavy promotions through price reduction.
· Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore
relations.
· Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the
· Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets,
· Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound
· Contraction Defence: For example, HUL decided to concentrate on its core business areas, that
Market challengers-
Strategies-
1) Frontal attack- Xiaomi who was the challenger became the leader afterwards defeating the then market
leader Samsung.
2) Flank Attack- Challenger firm attacks the leader on its weak points.
Example - WOODLAND outflanked the big players bata, liberty by introducing the robust,durable, rough and
tough outdoor shoe,
3) Encirclement attack- Savlon v/s Dettol , Savlon firstly known as just for soft then changed it image to all uses
like medical etc.
4) Bypass attack- Apple and Samsung, keep launching new technology one after the other to diversify their
product.
5) Guerrilla marketing- BMW and AUDI through billboards and twitter handle attacked each other.
Market followers-
Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best
qualities from each other by changing the style of the automobile. Adapters can soon
become leaders as well because they can adapt, learn and make a better product than the
higher competition.
TV revolution to India but was soon imitated by Videocon, Airtel, Reliance and others.
Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, than that’s
cloning.
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous
other products in the market which are counterfeited.
Market nichers -
1. End user specialist: Tennispoint All tennis needs are provided by the firm
2. Vertical level specialist: Heavy Transport firms moving heavy machinery and loads. They have
knowledge of alerting police, closing of roads, etc
3. Customer size specialist: Bangalore malls like Bangalore central mall, High footfall (1000 +) – garuda
and forum mall, Medium footfall (501-999)- central mall & majestic street, Small footfall (<501)- Hong Kong
bazaar & shangai bazaar
4. Specific customer specialist: High performance carburettors to specific brand like BMW, Porche,
Ferrari .
5. Product /Product line specialist: Amul offers a series of closely related products such as milk, butter,
ghee, yoghurt, ice-cream, chocolates, etc.
Consumer vs Customer
· A customer is a person or
company that receives, consumes or buys a product or service and can choose between different
goods available in the market.
· A consumer is one that buys good for consumption and not for resale and commercial
purpose. The consumer is an individual who pays some amount of money or the thing required to
consume goods and services.
· 1 Example: For a product like Baby Food (Gerber Organic Baby Food) the mother of a child
would be the customer who buys the product but the consumer would be the baby who consumes
/ eats the product.
· 3 Example: For a products like Children’s Toy (Barbie by Mattel) is bought by the parents
of the kids who are the customers but the consumers are the kids who play with the toys.
DISTRIBUTION
· Zero Level Channel – Manufacturer To Consumer
· Example: E- business (Myntra selling various products)
· One Tier Channel -- Manufacturer To Retailer To Consumer
· Example: Automobile manufacturers selling their cars through authorised dealers ( Maruti
Suzuki )
· Two Tier Channel -- Manufacturer To Distributor/Agent To Retailer To Consumer
· Example : Vera Moda in lifestyle showrooms
· Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer To

Consumer
· Example: The products sold by Hindustan Unilever

CONSUMER BUYING BEHAVIOUR
· PROBLEM RECOGNITION
o Awareness of need arising - This is classified as Internal need and External need
o Example: External need
o A person see’s a commercial for a new pair of shoes, stimulates his/her recognition
that they need a new pair of shoes.
· INFORMATION SEARCH
o Internal search- memory.
o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.
· A successful information search leaves a buyer with possible alternatives, the evoked set.
· For the search of new pair of shoes, the person would do external search like ask a few
friend, do a Google search for places to shop etc.
· EVALUATION OF ALTERNATIVE
o After deciding various alternatives like ;
o The different types of shoes that you want
o Sneakers, Sandals , Oxfords etc
· PURCHASE DECISION
o Final Decision on which place (store) as well as which type of shoe is decided and
the purchase is made.
· POST PURCHASE EVALUATION
o Evaluation if the pair of shoes chosen was actually the right choice and would you
go back to the store for repeat purchase.
Porter’s Five Forces
1) Reliance Industries
· Threat of Rivalry: The number of competitors in the industry in which Reliance

Industries operates are very few. Most of these are also large in size. This means that
firms in the industry will not make moves without being unnoticed. This makes the
rivalry among existing firms a weaker force within the industry. The fixed costs are
high within the industry in which Reliance Industries operates. This makes the
companies within the industry to push to full capacity. This also means these
companies to reduce their prices when demand slackens. This makes the rivalry
among existing firms a stronger force within the industry. The exit barriers within
the industry are particularly high due to high investment required in capital and
assets to operate. The exit barriers are also high due to government regulations and
restrictions. This makes firms within the industry reluctant to leave the business, and
these continue to produce even at low profits. This makes the rivalry among existing
firms a stronger force within the industry.
· Threat of New Entrants: The product differentiation is strong within the industry,
where firms in the industry sell differentiated products rather a standardised
product. Customers also look for differentiated products. There is a strong emphasis
on advertising and customer services as well. All of these factors make the threat of
new entrants a weak force within this industry. The capital requirements within the
industry are high, therefore, making it difficult for new entrants to set up businesses
as high expenditures need to be incurred. Capital expenditure is also high because of
high Research and Development costs. All of these factors make the threat of new
entrants a weaker force within this industry.
· Threat of substitutes: There are very few substitutes available for the products
that are produced in the industry in which Reliance Industries operates. The very
few substitutes that are available are also produced by low profit earning industries.
This means that there is no ceiling on the maximum profit that firms can earn in the
industry in which Reliance Industries operates. All of these factors make the threat
of substitute products a weaker force within the industry.The very few substitutes
available are of high quality but are way more expensive. Comparatively, firms
producing within the industry in which Reliance Industries operates sell at a lower
price than substitutes, with adequate quality. This means that buyers are less likely
to switch to substitute products. This means that the threat of substitute products is
weak within the industry.
· Bargaining Power of Suppliers: The number of suppliers in the industry in which

Reliance Industries operates is a lot compared to the buyers. This means that the
suppliers have less control over prices and this makes the bargaining power of
suppliers a weak force.The product that these suppliers provide are fairly
standardised, less differentiated and have low switching costs. This makes it easier
for buyers like Reliance Industries to switch suppliers. This makes the bargaining
power of suppliers a weaker force.
· Bargaining Power of Buyers: The number of suppliers in the industry in which

Reliance Industries operates is a lot more than the number of firms producing the
products. This means that the buyers have a few firms to choose from, and therefore,
do not have much control over prices. This makes the bargaining power of buyers a
weaker force within the industry. The product differentiation within the industry is
high, which means that the buyers are not able to find alternative firms producing a
particular product. This difficulty in switching makes the bargaining power of
buyers a weaker force within the industry.
Pricing Strategies
1) Skimming
· Apple’s mobile phones are priced higher than Samsung, Xiaomi (Read
in Skiming)
· Chocolates like Bournville, Dairy Milk silk priced higher
· Signature collection in Automobiles like Rolls Royce
2) Penetration
· Frito-Lay introduced Stax to the market in 2003. The brand was a direct
competitor to the well-established Pringles line of chips.To draw more
business, the company offered the chips at a steep discount of $0.69 per
canister. This earned the brand prominent display locations at many
retailers. When the chips had fully penetrated the market, the price
quickly rose to well above $1.
· Smart Phones : The two major suppliers of smart phones, Samsung and
Apple, follow markedly different pricing strategies. Apple uses a
skimming pricing strategy, and has been able to establish a strong brand
loyalty with its customers. This strategy keeps prices high and never
drops or offers any discounts. Apple customers are convinced that its
products are high quality, and each new phone model comes with more
exciting features. And people are willing to pay the steep prices.On the
other hand, Samsung is continuously offering Android phones at
introductory prices and discounts, hoping to build brand loyalty.
Samsung also partners with cell-phone companies to provide Android
phones at cheap prices in exchange for commitments to long-term
contracts. Consumers get enticed by the low prices and overlook the cost
of the terms of the contract.
Apple sell expensive phones to a small market, while Samsung sells a high
volume of phones to a broader consumer base.
3) EDLP (Everyday Low Pricing Strategy)
· A combination of rich product assortment and making it available at

everyday low price (EDLP) is DMART’s winning formula in value
retailing. For EDLP, the company focuses on everyday low cost (EDLC)
· Big Basket
4) Surge Pricing
· Higher price of Travels services or bus services/Flight services on days

near festive seasons
· Apparel industry during peak season like and fbb or a a shopping mall
5) Discount Pricing
· Customer Value Discounts - A 15%-off coupon for first-time customers

to get them interested such as a ZOMATO or Google pay offering
Cashnack
· Seasonal Discounts – Independence day, Diwali Sales, Christmas Blast
6) Psychological Pricing Introduction :
· L’Oreal is a great example, providing the public with three different

segments at different prices. They have positioned themselves in the
luxury market, professional market, and consumer market, allowing
open purchasing throughout. They give consumers the option to buy
Kiehl’s Shampoo for Rs.2500, Redken for Rs.1500 or Garnier for Rs.300.
· Artificial Time Constraints on E commerce saying HURRY UP, ONLY
3 LEFT
· Charm Pricing : 999 is better than 1000
· Innumeracy - “Buy one get one free” or “50% off a two items?” Both
are the same deal but research has shown that most people would prefer
the first option, even though the two options are identical. This
phenomenon is known as innumeracy
7) Loss Leadership
· HP printers. HP may sell printing machines free of cost. Seeing this offer
everybody will rush to the markets and get the machine. But in order to
make printing machine work, customers need to buy cartridges which are
sold separately at such higher prices that even compensates for the loss of
selling printing machines for free.
· One popular example of this is a razor with disposable blades. Often, a

store will price the razor very low, but armed with the knowledge that the
consumers with need to purchase new blades, refill sets are over-priced to
increase profits
Market Leader Strategy

1) Expand Total Market Strategy
· Patanjali Ayurved – To penetrate in the market
· Maruti Suzuki Cars – New Market segment where customer switching from 2 to 4
wheeler
· Mercedes India – Geographical Expansion where Benz targets Tier 2 and 3 cities
2) Defending Market share Strategy
· Position Defence :Parle G, Gillete Razor, Dettol Hygiene (Superior brand

power makes them impregnable)
· Flank Defense : Nestle India rolling put 2 minute Maggie noodles to

appeal to young people under the brand hot heads
· Pre-emptive defense : Ola introducing Ola shuttle service to outsmart

Uber i.e. it’s competitor in September 2015
· Counter offensive Defense : Starbucks launching Alfonso Mango

Frapuccino to compete with other coffee brands
· Mobile Defence : KFC Chizza a pizza with no base but only chicken as
it’s crust, Coke with VIO flavoured Milk
· Contraction Defense : Pepsi Atom positioned as strong, fiest to counter

Coca Cola’s thumps up. Also, Maruti Kizashi Sedan was withdrawn after
failing to impress
3) Expanding the Market Share strategy
· Apple, Hero MotoCorp, Parle G
Segmentation, Targeting, Positioning & Differentiation
1. Samsung:
SEGMENTATION TARGETING
Geographic Region 80 Countries

worldwide
Density
Urban & rural
Demographic Age 18 to 65
Gender Males & Females
Life cycle stage Bachelors, Newly

married, aged people
Students, employees
Occupation and professionals.
Behavioral Degree of loyalty Hardcore loyals,
softcore loyals,
switchers.
Benefits sought Sense of

belongingness,
advanced features,
overall high quality
User status Potential users, non-

users, first time users,
regular users
Psychographic Social Class All classes
Mainstreamer,
succeeders, explorers
Lifestyle
Positioning:
· All the products come under the name Samsun electronics which is an umbrella approach in
its branding such that subsequent products could be easily understood and accepted by the
customers.
· ‘The next big thing is here’ has taken the company to the top of the smartphone market.
· Samsung uses unique tagline for each and every product.
· Samsung had innovative features like value for money, integral part of family, energy
efficiency.
Differentiation:
· By manufacturing its own major components of its mobile devices, Samsung achieves its cost
leadership. Thus, it delivers a cost efficient product.
· It uses combined cost leadership and differentiation strategy by offering unique benefits in a
product and thus delivering a lower priced product than Apple.
1. Tata Nano:
Idea Generation:
· To create safe, affordable, all weather form of transport to a family.

· To create an option for people who want to move from 2 wheeler to a 4 wheeler at
affordable price.
Idea Screening:
· A scooter with 2 extra wheels at the back for extra stability?

· An auto rickshaw with 4 wheels?
· 4 wheeled rural car?
· But market wanted a car and it should be like a car.
Concept development and testing:
· Mr. Girish Wagh talked with the customers.

· 3 wheeler drivers inevitably insisted on cheap and dependable trucks
· But he kept asking ,” Why do you want a 4 wheeler?”
· Finally he got an answer saying that if I had a 4 wheeler, I would have better
marriage prospects in my village.
· Thus, 4 wheels have emotional appeal and not just practical
· Car to cost Rs.1 lakh on road
· Car to be built on different platforms than the conventional ones
· It must meet all safety and regulatory requirements.
· A truly people’s car: Low cost, safe and fuel efficient.
Business Analysis:
· What makes nano so cheap?

· Reduction in the number of non-essential parts
· Redesigning essential parts to lower cost and maximize functionality without
reducing quality.
· Weight reduction wherever possible
· Three lug nuts instead of the usual four.
· Same dashboard can be used for Right hand as well as Left Hand drive models.
Product Development:
· Nano is constructed of components that can be built and shipped separately to be

assembled in a variety of locations.
· Use of aluminum engine to reduce weight and costs.
· Use of light weight steel wherever possible
Testing:
· Crash Testing
· Testing on torture tracks
Commercialization:
· Tata Nano was launched in 2008.

· It was promoted using advertisement through various mediums.
· The cost of the car was Rs. 1 lakh
Market Followers
1. Puma vs Nikhil Thermoplast:
· Puma filed a lawsuit on Nikhil Thermoplast for using its logo and strip for a
substantial period of time.
· Nikhil Thermoplast used this strip for its products such as jerseys and other
materials and sold it on some e-commerce websites.
· However, for doing this, Nikhil Thermoplast was permanently disallowed from
using strip of Puma (Infringement of Trademark as per Trademarks Act, 1999)
Adapters:
· Britannia Good day launched in 1986 (33% market share)

· Parle 2020 launched in 2008 (18-20% market share)
· Dish TV launched in 2004
· Tata Sky launched in 2006
Imitators:
· Imitation jewelry
· Footwears
Cloners:
· Colgate and Cooolgate

· Bisleri and Bilseri
· Gucci and Gucca
· Tide and Tied
Counterfeiters:
· Samsung phones are counterfeited in Bangkok

· DVD Piracy
BCG Matrix
The Boston consulting group’s product portfolio matrix (BCG Matrix) is designed to help with long
term strategic planning, to help a business consider growth opportunities by reviewing its portfolio
of products to decide where to invest, to discontinue or develop products. It is also known as the
growth/share matrix.
For major organizations like HUL, ITC etc which have multiple categories and within the categories,
they have multiple lines of products, the BCG analysis becomes very important. At a holistic level,
they get to make a decision on which product to continue and which product to be divested. Which
product can give new returns with good investment, and which products are reaching the apex of
market share.
· Cash Cows – High market share but low growth rate (Most profitable).
· Stars – High market share and High growth rate (High competition).
· Question marks – Low market share and high growth rate (Uncertainty).
· Dogs – Low market share and low growth rate (Less profitable or may even be negative
profitability)
Ansoff Matrix:
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior
managers, and marketers devise strategies for future growth.
The output from the Ansoff product or market matrix is a series of suggested growth strategies
which set the direction for the business strategy.
The four strategies of the Ansoff Matrix are:
1. Market Penetration: It focuses on increasing sales of existing products to an existing market.

2. Product Development: It focuses on introducing new products to an existing market.
3. Market Development: Its strategy focuses on entering a new market using existing products.
4. Diversification: It focuses on entering a new market with the introduction of new products.
Of the four strategies, market penetration is the least risky while diversification is the riskiest.
Product Line extensions
Product extensions are versions of the same parent product that serve a segment of the target market
and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in
same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand
awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted
brand name on it.
Line extensions occur when a company introduces additional items in the same product category
under the same brand name such as new flavours, forms, colours, added ingredients, package sizes.
Line extension occurs when the company lengthens its product line beyond its current range. The
company can extend its product line horizontally (Width) or vertically (Depth).
Indian example is HUL's Wheel Vs RIN both which offer the same core benefit which is a washing
detergent, but targeted at different segments. One other example if of Horlicks, which has extended
its product line vertically in the form of Junior Horlicks, Women’s Horlicks and Horlicks Lite.
Examples:
Market Challenger Strategy
The Market Challenger Strategies are the marketing strategies adopted by the firms, either
occupying the third or runners-up position in the market, to attack the leader or the immediate
competitor with the intention to capture a greater market share and earn huge revenues.
Generally, the market challengers are those firms, which have a good reputation in the market and
enjoys a strong financial position. These firms target the market leader or the competitor at the same
level with the objective, to reach the first position in the market or become an industry leader.
Market Challenger Strategies:
1. Frontal Attack: This is a direct attack based on the competitors’ strength. Usually the
attack is done by offering lower price, better quality product, aggressive advertising, or better
service quality to customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the challenger
with about 9% market share. But by, targeting the product (Snapdragon 800 series processor), price
(about half of Samsung), place (flash sales) Xiaomi became the market leader with 25% market
share.
2. Flank Attack: This means attacking the competitors’ weak points. Market challenger can
identify the weak points based on geographic. This means challenger find the area competitors
are under performing and develop marketing strategy to cater that area. Other than that, they
can also challenge the competitors based on segmentation. This is where challenger identifies the
segment that competitors left out and create a product to satisfy them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by introducing
the colour TV “Sampoorna” for the rural people and outshine the other coloured TV players who
had a less focus on these areas.
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing the
robust, durable, rough and tough outdoor shoes, and hence captured the untapped market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths and
weaknesses at the same time. Simply put, encirclement attack is the combination of frontal and
the flank attacks.
Eg.Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and also by
promoting that unlike Dettol, Savlon doesn’t sting and smells much better.
Eg.Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing Maruti
Suzuki to do the same
4. Bypass Attack: The Bypass Attack is the most indirect marketing strategy adopted by the
challenging firm with a view to surpassing the competitor by attacking its easier markets. The
firm can adopt any of the three approaches before launching the bypass attack; they can either
diversify into the unrelated products, into the new geographical markets or leapfrog into the new
technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral water brand,
very much before the coke’s Dasani Brand.
Eg.ParleAgro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured
carbonated soft drink
5. Guerrilla Attack: Guerrillawarfare is the marketing strategy adopted by the challenger

firm intended to launch the intermittent attacks with an intention to harass or demoralize the
competitor.
Eg.Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce websites adopt
this strategy by offering deep price cuts certain days a year)
Eg.Dunkin brand used this strategy when it came up with its espresso machines in every Dunkin US
location. Dunkin' has also tweaked its espresso strength and flavour profile, updated its coffee
packaging, and launched a marketing campaign with weekly espresso-beverage-based promotions
running through the end of the year and thus surpassed Starbucks to become market leader.
PRODUCT LIFE CYCLE
MAGGI ATTA NOODLES
INTRODUCTION OF MAGGI 2-MINUTE NOODLES

· It’s a Brand of Instant Noodle made by Nestle India Ltd.
· It was found by the Maggi family in Switzerland in the 19th century.
· Nestle launched Maggi for the first time in India in the year 1982.
· Nestle wanted to explore the potential for such an Instant food among the Indian market.
· It took several years and lot of money for Nestle to establish its Noodles brand in India.
· Now it enjoys around 90% market share in this segment.
Over the Years Maggi has launched several products under its Brand Name.
ISSUES
Different phases product life cycle of Maggi
Why Atta Noodle was a Failure?
INTRODUCTORYSTAGE
· High-failure Rates
· No Competition
· Frequent product and Modification
· Limited Distribution
· High-marketing and product costs
· Promotion focuses on awareness and Information
2-minute instant noodle was a great success.
Market Penetration Strategies
· Promotional campaigns in school.

· Advertising strategies: - focusing on kids.
Newproduct innovation according to the need of consumers:
Veg Atta Noodles
Conducting regular market research
GROWTH STAGE
• Increasing rate of sales
• Entrance of competitors
• Initial healthy profits
• Promotion emphasizes brand ads
• Prices normally fall
• Development costs are recovered
• 10 yrs back it enjoyed around 50% market share in this segment which was valued at around 250
crores.
• In order to improve sales , NIL changed the formulation of Maggi noodles in 1997.
• However, this proved to be a mistake, as consumers did not like the taste of the new noodles.
• In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived.
Over the years, NIL also introduced several other products like soups and cooking aids under the
Maggi brand. Offered in more sizes, flavours, options
MATURITY STAGE
• Declining sales growth
• Saturated markets
• Extending product line
• Stylistic product changes
• Heavy promotions to dealers and consumers

• Prices and profits fall
• In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2- minute noodles by
launching a new category of liquid snacks under its food brand, Knorr Annapurna.
• The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had
four variants: two chicken options and two vegetarian.
• Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups,
particularly office-goers. Many consumer products are in Maturity Stage.
DECLINE STAGE
If no product innovation brought
• Long-run drop in sales
• Large inventories of unsold items
• Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or
adoption of substitute products
Market Nichers
Meera Shampoo:
Manufactured and marketed by Cavinkare in the sachet segment. It has the traditional shihakkai
base and is a hugely herbal product. It is advertised for the special shihakkai context, that lends the
hair a very shiny look. This product is very famous in Tamil Nadu, and in Kerala, as rural folks still
like to have the lake bath and then a shampoo which is traditional in nature. It is not available in this
form in most parts of North India, as people out there, do not prefer the herbal variant. The same
company also has a super duper hit product "Nyle" with the traditional chemical base for North
Indian markets. Meera is a classic example of ethnic marketing in Indian context. Ethnic is defined
as that which is pertaining to or characteristic of a people ( group) sharing a common and distinctive
culture. Ethnic marketing is understanding that distinctiveness and adapting product and marketing
strategies in order to appeal to that group. Meera is famous for its herbal hair wash powder. The
tradition of using powder hair wash lies in our culture and tradition. Traditionally Indian women
relied on powdered herbs to nourish their hair.
Then along with changing lifestyles, new products like shampoos began to take the place of these
herbal powders. While hair oils have retained their position in the hair care market, the use of hair-
wash powder was reduced to a niche.
It is in this context that Meera as a brand becomes interesting. The brand not only catered to the
niche but also has developed this market and evolved to become an umbrella brand for more
traditional hair-care products.
Although there was many companies who were selling powder hair wash, most of these players
belong to the unorganized sector . Shaw Wallace had a similar product but the firm was not
promoting that line. Cavinkare began to aggressively built the brand and Meera became the market
leader in that category.
Herbal hair wash product typically consists of powder/essence from Shikakai , green gram, tulsi,
veliver, reetha , hibiscus ,fenugreek etc.
When time passes by, these traditional products tend to lose relevance . Traditional products fade
from the market for many reasons like
a. better new products : New and better products make some traditional products less relevant.
b. No marketing : Because of lack of marketing, many traditional products fade from the consumer's
mental space.
c. Product availability.
d. Changing consumer preferences
e. Non-viability of manufacturing and marketing traditional products.
In the case of herbal powder market, the products are unattractive to urban market because these
are not easy products. Herbal powders are often messy and the user has to spent lot of time in using
the product. In this fast life, the urban consumers are looking for fast solutions. Meera as a brand
has made the choice easy for the consumers. Instead of using unbranded products, consumers
trusted Meera since it came from a well known company. The brand also is available in sachets thus
making it convenient for the consumer to buy the product in smaller quantities. Meera uses the
slogan " Healthy hair for years " highlighting the efficacy of the product.
Buoyed by the success of the hair-wash product, Cavinkare extended Meera into shampoos and
soaps.
In 2004, the brand extended itself to the highly lucrative hair-oil market. Indian hair-oil market is
worth 1800 crore.
Ø End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men
who want a long beard. Also, another example is Lefty’s San Francisco is a left-handed
retail store that sells school supplies, kitchen goods, and gardening tools, and many more
things for the lefties.
Ø Geographic specialist: Bombay Shaving company is an example of geographic specialist.
It’s production and target audience was initially strictly restricted to the city of Mumbai.
Ø Customer size specialist: Tree of Life(Hallmark) specializes in only Jewish greeting card
and gifts and celebrates Jewish faith.
Ø Product specialist: UNTUCKit brand has created a new line of products for people who do
not like tucked shirts. It gives you a feel of a tucked shirt without actually tucking it.
Ø Specific customer specialist: Weber carburettor is a company which provides carburettors

to only high end cars like Porsche, Ferrari, and BMW.
PROMOTIONS AND INSIGHTS

Liril advertisement:
This targeted woman of all age groups. In the olden times, when there widely existed the system of
joint families, women did not have free time for themselves. So, this advertisement in which a woman
is bathing under a waterfall using liril soap, gave all women a sense of free time which they otherwise
hardly found in a joint family. So, this advertisement instantly could connect with all women and
thus the brand became a huge success. The Liril ad was more a reflection of the present and the
future. The ad ushered in a new era, and both Indian advertising and mindset came out of the
closets. In the 1970s, Hindustan Lever was introducing a lime soap in India for the first time. It
represented freshness and fun. A consumer survey is said to have given Padamsee the idea for the
waterfall scene.
The survey suggested that Indian women only get little time during the day to be by themselves —
and bathing was one of these moments. The shower became the waterfall, and the idea became a
memorable ad for decades.
Karen Lunel, the woman bathing and having fun in the ad, continued to be the ‘Liril girl’ for over a
decade. She represented a new India, where wearing a bikini didn’t seem out of the ordinary, and
girls could have fun. Lunel was unabashed and unapologetic about enjoying a bath outside, Bijoor
said on how the ad became so popular.
Some in the industry said that the state-run television channel Doordarshan even refused to air it
initially and then decided to fix time slots for the ad.
The ad became so popular that it became a blueprint for the company. Till 2009, Liril ads featured
the waterfall and ‘Liril girl’ — Deepika Padukone and PreityZinta have both starred in the ads.
“The jingles and the taglines were very carefully crafted, whenever you make an ad, it is absolutely
critical to understand the psyche of the people,” Padamsee had told ThePrint in a telephonic
interview in September last year. “Somewhere, you need to be a social scientist to understand what
will work.
Paul-112
❖ Pricing strategies:
1. Bundling – Colgate paste and toothbrush
2. Surge pricing – Ola/Uber
3. Cost plus – commodity seller
4. Economical – Nirma
5. Premium – Louis Vuitton and other designer brands
6. EDLP – Big bazaar or other super markets
7. Promotional – Amazon price being introduced at discounted price
8. Geographical – Nandini milk cheaper in South India
-----
Skimming – perceived value addition: Saffola oil marketed as best for the heart
Apirational: Armani jeans more expensive than Lee or Levis
Penetrative – Induce trails: Jio when it started with free subscriptions
Backward integration: Nirma competed against Surf Excel through backward integration
❖ New Product Development: Tata Nano

Idea Generation:
▪ To create a safe, affordable and all-weather form of transport for families.
▪ To create an option for people who want to move from a 2-wheeler to 4-wheeler – at the
price of a 2-wheeler
Idea Screening:
▪ A scooter with 2 extra wheels at the back?
▪ An auto rickshaw with 4 wheels
▪ 4-wheeler car made of engineering plastic
▪ But the market demand was for a car and not a scooter
▪ When people were asked as to why a 4-wheeler was an aspiration – they said that they
would have better marriage prospects.
▪ 4-wheeler had an emotional appeal, not just a practical one
▪ Establish a factory in a tax-free zone
▪ Get the tax advantage on infrastructure
▪ Get the suppliers to establish a base near the factory
▪ Get special concessions from state government
▪ Design inputs from institute of Development in Automotive Engineering, Italy
▪ Constant design changes
▪ Design adaption from Daewoo Matiz and Tata Indica
▪ 37 patents associated with the design of Nano
▪ The nano is constructed of components that can be built and shipped separately to be
assembled in a variety of locations
Test marketing:
▪ Crash testing
▪ Testing on torture trucks
Commercialization:
▪ Launch the product
▪ Produce and place advertisements
▪ Fill the distribution pipeline.
❖ Types of Distribution:
● Mass distribution: Intensive distribution – Parle G
● Selective Distribution: Woodland, Kaya Skincare (restricts the number of outlets handling a product)
● Exclusive Distribution: Producers select only a few intermediaries. Example – OnePlus
❖ Promotion and Insights:

● Advertisement: Bande Ache hai – ICICI Bank
● Insight: Jo Zimmedari nibhate hai, jatate nai. For the men of the society who take up many
responsibilities
❖ STPD- Dove (HUL)

Segmentation:
1. Demographic: Gender, Age and Income
All 18+ aged women with relatively higher purchasing power
2. Psychographic: Aimed at creating a psychology in women where ‘beauty’ incorporates all ages,
body shapes and sizes. Tagline “You are beautiful the way you are”
Targeting:
1. Women specifically working women who do not have the time to take care of themselves – USP of
being both a soap and a moisturizer
2. Upper middle class and high income group
Positioning: Positioned itself as not just a soap but a soap which contains ¼ moisturizer content – Beauty
bar. Also through its advertisements, encourages women all around the world to feel good about
themselves. Helps women not to become beautiful but to be the beautiful person you have always been.
Differentiation: High moisturizer content to differentiate itself from its competitors
❖ BCG Matrix – Tata Group

Star – Taj hotels, Tata Steel, TCS
Cash Cow – Consumer products like Tata salt and Tata tea
Question mark – Tata teleservices, Tata Housing
Dog – Tata AIG
❖ Ansoff Matrix – McDonalds
Market Penetration Product development
Clever pricing McAloo, Masala grill, Royal Paneer

Happy meal Tried to replace their menu which
Speedy service included beef with vegetarian options
Drive through to suit the India palate
Market Development
Has presence in 119 countries and is Diversification

further planning to open in other Introduced McCafe
countries as well
❖ Product Line Extensions-Cadbury

Chocolate bars Chocolate boxes Beverages Biscuits
and puches
5star Celebrations Bournvita Oreo
Dairy milk Dairy Milk shots
Bourville Gems
Perk Home Treats
Temptations
❖ Porter’s 5 forces – Airline industry

Threat of new entrants - The threat of new entrants in the airline industry can be considered as low to
medium. It takes quite some upfront investments to start an airline company (e.g. purchasing aircrafts).
Moreover, new entrants need licenses, insurances, distribution channels and other qualifications that are not
easy to obtain when you are new to the industry (e.g. access to flight routes).
Bargaining power of suppliers - The bargaining power of suppliers in the airline industry can be considered
very high. When looking at the major inputs that airline companies need, we see that they are especially
dependent on fuel and aircrafts. These inputs however are very much affected by the external environment
over which the airline companies themselves have little control. The price of aviation fuel is subject to the
fluctuations in the global market for oil, which can change wildly because of geopolitical and other factors.
In terms of aircrafts for example, only two major suppliers exist: Boeing and Airbus. Boeing and Airbus
therefore have substantial bargaining power on the prices they charge.
Bargaining power of buyers - Bargaining power of buyers in the airline industry is high. Customers are
able to check prices of different airline companies fast through the many online price comparisons websites
such as Skyscanner and Expedia. In addition, there aren’t any switching costs involved in the process.
Customers nowadays are likely to fly with different carriers to and from their destination if that would
lower the costs. Brand loyalty therefore doesn’t seem to be that high. Some airline companies are trying to
change this with frequent flyer programs aimed at rewarding customers that come back to them from time
to time.
Threat of substitute products - In terms of the airline industry, it can be said that the general need of its
customers is traveling. It may be clear that there are many alternatives for traveling besides going by
airplane. Depending on the urgency and distance, customers could take the train or go by car. Especially in
Asia, more and more people make use of highspeed trains such as Bullet Trains and Maglev Trains.
Furthermore, the airline industry might get some serious future competition from Elon Musk’s Hyperloop
concept in which passengers will be traveling in capsules through a vacuum tube reaching speed limits of
1200 km/h. Taken this altogether, the threat of substitutes in the airline industry can be considered at least
medium to high.
Rivalry among existing competitors - When looking at the airline industry in the United States, we see that
the industry is extremely competitive because of a number of reasons which include the entry of low cost
carriers, the tight regulation of the industry wherein safety become paramount leading to high fixed costs
and high barriers to exit, and the fact that the industry is very stagnant in terms of growth at the moment.
The switching costs for customers are also very low and many players in the industry are similar in size
(see graph below) leading to extra fierce competition between those firms. Taken altogether, it can be said
that rivalry among existing competitors in the airline industry is high.
Mihir Pendse , 101

Marketing Assignment Examples
Consumer and Customer:
o Customer is the person who buys the goods or services
o Consumers use the products or services that customers buy
o A bank is a good example. Someone might come in to the bank, but he does not have an
account at this bank. However, he does have a check made out to him from a customer of
this bank. He is not a customer of this bank, but he is a consumer of this bank, and wants
to cash a check made out to him by a bank account holder; this person is a consumer
because they really don't have any relationship with the bank. The person who has basic
bank accounts and comes in periodically to deposit or withdraw money is a customer; this
person might not have had extensive conversations with the bank employees.
New Product Development:
Based on factors such as available market share, customer requirements, investment needed, competitor
analysis etc., a business case can now be developed. This is often treated as the first step of the formal product
development process.
8 stages of product development:
1) Idea Generation.
2) Idea screening.
7) Test marketing
Note: Product concept is product idea expressed in meaningful marketing terminology.
Consumers buy product concept.
Examples:
1) Ujala: Aaya naya Ujala, char boondon waala captured the imagination of the Indian public in 1997
and changed the fortunes of the tiny Jyothy Laboratories Limited (JLL). Robin Blue, which was the
dominant leader in the fabric whitener category was available in powder form. Ujala used the tag line of
char boondon wala which projected that in four drops you can clean your cloths (economical). It was the
first liquid fabric whitener in the market. It cleverly used blue coloured bottle with white embossing on
it.
2) Nirma washing powder: Nirma’s target group was E1 to E6 (according to SEC classification). Nirma
in its promotional advertisement used the names of famous film actresses (Hema, Rekha, Jaya) which
projected them as a high quality premium product. Instead of selling the concept of washing powder
directly they projected themselves as a high quality premium product.
3) Crack Cream: Earlier especially women consumers were reluctant towards the cracks on heels. Crack
cream companies sold an interesting concept which made heels as a projection of beauty while they were
at collective get together like wedding, sangeet etc. This made women feel like having a crack free smooth
heel is a projection of beauty.
4) Face packs VS beauty soaps: Beauty soaps sell the concept of being as effective as a natural face
pack and in turn also consumes less time. Traditional face packs take 10-15min while beauty soaps give
same effect in 30-40 seconds.
Pricing Strategies:
Price: Pricing is the method of determining the value a producer will get in the exchange of goods and
services.
Note: There are two types of price segmentation Ceiling pricing and floor pricing. All other types of pricing
fall in between these two categories.
Companies follow ceiling pricing when they want to skim the market and follow flooring pricing when they
want to penetrate the market.
Examples:
1) Premium pricing:
· Premium pricing of unleaded petrol (Speed) is higher than normal petrol by 5rs/lit.
· Davidoff Rich Aroma Coffee 100g 999rs (organic),Nescafe Classic Instant Coffee (100
g) 290rs.
2) Penetration pricing: *Nirma washing powder 1kg 88rs.
* Wheel washing powder 1kg 139rs.
3) Price Skimming: * Apple iPhone 11 (64GB)64,900rs, Apple iPhone 11 Pro Max (64GB)1,
09,900rs.
4) Psychological pricing:
· OTT service will be provided by Apple at 99rs.
· Bata shoes are priced at 999/-.
5) Optional product pricing: Alto 800 ex showroom price:
Variants Ex Showroom price

in lakhs
Standard 2.99
Standard (O) 3.02
LXI 3.55
LXI (O) 3.60
VXI
3.77
VXI + 3.82
6) Captive Product Pricing:

· Gillette Guard Razor 22 Rs
· Gillette Guard Cartridges 3 pieces 28 Rs.
7) Bundled Pricing:
· Cadbury Celebrations Gift Pack, (215g) 150 Rs.
· Includes 2 Cadbury 1 gems 1 5star etc.
· Close up tooth paste + tooth brush.
8) Promotional Pricing: Lifebuoy Lemon Fresh Soap Bar pack of 4+1 Free for 240 rs.
9) Geographical Pricing: Variations in pricing according to different geographical locations.
· Nandini milk in state of Karnataka 23 Rs (500ml).
· Nandini milk outside the state of Karnataka 25 Rs (500ml).
10) Value Pricing: Mc donald’s meal at 273 Rs.
11) Loss leader pricing:
· Previously Jio’s (28 days) Recharge at 149rs now Jio’s recharge (28 days) 199 Rs.
12) Everyday low pricing: Walmart.
13) Search Pricing: Ola & Uber when demand for the cars is high the algorithm sets higher
prices.
Distributor:
The MRP is Rs. 191. The company first sells it to the distributor, who at a margin of about 8% sells it to the
wholesaler who then with a margin of about 10% sells it to the retailer. Finally the retailer sells it to the
customer at a margin of about 12%. So, the prices in rupees of the different elements of the supply chain are
as follows:
Consumer Rs 191
Particulars Rs
COGS 278000
Transport 900
Rent 2000
Salary 800
Other expenses 100
Profit 20800
Liril advertisement: This basically targeted women of all age groups. In the olden times, when there widely
existed the system of joint families, women did not have free time for themselves. So, this advertisement in
which a woman is bathing under a waterfall using liril soap, gave all women a sense of free time which they
otherwise hardly found in a joint family. So, this advertisement instantly had a connect with all women and
thus the brand become a huge success.
ICICI Advertisement (Bande Ache Hai): This advertisement is a classic example of Segmentation. It
particularly targets all men who are the bread owners of their family. This advertisement shows through
various situations how selfless and caring all men are towards their family.
Segmentation Targeting Positioning:
Example of titan watches.
Name of Product Segmentation Targeting Positioning
Xylus lifestyle AHI>12lpa Premium/luxury
Sonata Geographical (Rural) AHI>2lpa, men Value for money

from E1- E6 cities.
Fastrack Demographic Millennial Cool watches by titan
Titan Raga Demographic Working women Ornament/watch for

form A1, A2, A3 working women.
cities.
BCG Matrix for Patanjali:
BCG Matrix (Financial Portfolio)
Boston Consulting Group.

Example of Patanjali
Star. Question Mark
- Keshkanti (9%) - Cornflakes

(10%)
- Dantkanti(14%)
- Oats(7%)
-
Chaywanprash(9 - Healthy
%) Noodles(7%)
Cow Dogs.
- Honey (35%) - Panchgavya

soap
- Cow’s Ghee(33%)
- Kayakalp oil
Low Market Share High
Ansoff matrix:
Ansoff matrix for Reliance
· Penetration :
- Tata Motors
- Tata Bearings
- Tata tubes
- Tata wiron
· Product development
- Tata Swatch, Aviation
- Steel coils
- Corrugated steel
· Market Development
- Mergers with jaguar and land Rover
· Diversification
- Aerospace, Ship building, defence
Porters 5 forces:
· Competitive Rivalry – High :
- Facing Competition from many other numerous brands like Knorr, Sunfeatst
- No Product differentiation
- Market share had declined due to ban which benefited other competitors
· Threat of new Entrant – High :
- Entry barriers are low, hence easy for new entrants
- No extensive investment
- Cheap raw material
· Bargaining power of supplier – Low :
- Required raw material like sugar, wheat, spices, packaging are available in abundance
- Raw materials are readily available
- Switching cost for suppliers is low
· Bargaining power of Buyers – High :
- Buyers can switch from one brand to another in no time, Hence switching cost for buyers
is low which is a threat for Maggie
- Maggie has a strong brand loyalty which reduces the threat intensity
· Threats of Substitute – High :
- Health awareness in on rise in public, hence there is a strong threat of healthy substitutes
- Also ready to eat pasta, soups act like substitute
Product life Cycle:

Product Price Place Promotion
Introduction Launched in five Rs. 2.5 per Only to selected “Easy to cook ;
flavours initially. 100 gm (100 retail stores, good to eat “
These were % margin) distributors
Masala, Chicken, and kirana
Sweet &sour, stores
Capsicum,lasagne
Growth No Changes in Prices were Campaigning “Mummy bhook

product. Tried kept normal in school , tied lagi hai bas do
changing taste by with Chordia minute Maggi”
launching Maggi Rs. 10 for 100 foods (pune)
Macroni in 1997, gm by 1997 and Indian TV programs
but reverted the foods and heavily
changes soon fermentation advertised
(Chennai)
Maturity Introduced wide Prices were Extensive “Taste bhi,

variety of flavours affordable, distribution, Health bhi”
like vegetable atta But reduced
noodles, Chicken the quantity Maintained
noodles, magi good relation
cuppa mania Rs. 10 for 70 with channel
gm partners
Decline Found presence of Still Low Reduced Come back

Lead in the distribution campaign
Maggie which
lead to loss of trust
among customers
Consumer behaviour Process :
a) Recognition of needs and wants
Winter is coming. This particular customer has several light jackets, but he’ll need double layer winter coat
if he has to survive the snow and lower temperatures.
b) Information Search
The customer searches “men’s winter coats” on Google( Public search) to see what options are out there.
When he sees someone with a thick coat, he asks them where they bought it(Personal Search) and what they
think of that brand(Experiences Search).
c) Evaluation of Choices
The customer compares a few brands that he likes. He knows that he wants a brightly coloured coat that will
complement the rest of his wardrobe, and wants to rather spend less money, he also wants to find a coat
made from sustainable materials.
d) Purchase
The customer finds a blue winter coat that’s on sale for 20% off. After confirming that the brand uses
sustainable materials and asking friends for their feedback, he orders the coat online.
e) Post purchase Evaluation
Was the product able to satisfy my needs?
Am I satisfied with the product?
Will I recommend the product to others?
Product line extension:
The consumer products of Nirma are basically a summation of four product lines namely Soaps, Detergents,
Edible salt and Scouring products.The product lines under each are extended as follows:
Soaps: Nirma beauty soap(75g, 150g), Nirma beauty soap, Nirma Rose(100, 200), Nirma Sandal(100g,
150g), Nirma Lime fresh soap(75g)
Detergents: Nirma Washing powder, Nirma detergent cake(125 & 150 g), Super Nirma Detergent cake(125g
, 150g), Super Nirma washing powder(1.5 kg, 1kg)
Market Challengers:
•Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low
•Flank attack: Savlon attacking Dettol that it doesn’t hurt while applying an antiseptic liquid. This was the
weakness of Dettol.
•Bypass attack: Jio Bypassed the call market and entirely focused on data pack. This is the classic example
of Bypass attack.
• Guerrilla Warfare: Dunkin Donuts used this tactic to counter the Coffee Industry in South Korea. It installed
machines in public transport bus which released a fragrance of Dunkin Donut coffee whenever the tune of
dunkin donuts was played.
Market Leaders:
· Position defence: Gillette is the market leader and to retain its position the company
entered into women’s segment and launched products like women’s razors, Venus,
Foams. Goodnight to retain its position as market leader launched a new product (fast
card) which does not even require electricity. As a result it successfully penetrated into
rural market.
· Flanking defence: Maggie launching atta noodles(Taste bhi health bhi). Coke and Pepsi
launching a diet coke/ low sugar drinks.
· Pre emptive defence: ITC venturing into hotels. ITC venturing into retail. Parley going
from biscuits to chocolates and juices (frooti).
· Mobile defence: Facebook acquiring whatsapp.
· Counter offensive defence: The Hindu vs. Times Of India.
Market nichers:
End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a long
beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells school supplies,
kitchen goods, and gardening tools, and many more things for the lefties.
Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production and
target audience was initially strictly restricted to the city of Mumbai.
Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts and
celebrates jewish faith.
Product specialist: UNTUCKit brand has created a new line of products for people who do not like tucked
shirts. It gives you a feel of a tucked shirt without actually tucking it.
Specific customer specialist: Weber carburettor is a company which provides carburettors to only high end
cars like Porsche, Ferrari, BMW.
Market followers:
· Market adapters: 1) Britannia Good day, Parley 20-20, Priyagold butter biscuits. 2) Dish
tv, Tata Sky, Airtel tv.

Name-Dilsa Jain Roll no -82

Product life cycle; Eg: LUX
PRODUCT PRICE PLACE PROMOTION
INTRODUCTIO Lux is one of Speaks to It has strong 360 degree

N the leading middle class distribution marketing
personal care & and targets its network over communication
skin care brand. customers. 1.3 million through TUC’s,
outlets. print media,
online
advertisement
etc.
GROWTH It is promoted It is highly It is handled by Provides huge

as a brand economical is third party. market through
which promotes positioned as television, print
products that an affordable media, online ads
are bearing out luxury soap for etc.
the best of all. It ranges
beauty in from Rs 5 to Rs
people. 40 diff SKU’s.
MATURITY It is considered It has adopted a Supplier Positioned itself

to be aspired competitive provide all as a soap & gives
brand of middle pricing other retailer in good fragrance.
class segment mechanism to country.
major focus is compete & Used celebrities
on beauty survive with like Kareena
soaps, shower other players in Kapoor, Akshay
gel, hair market. Kumar etc
conditioners
etc.
DECLINE Lux faces Further It is available in Focus more on

competition achieved by all retail stores retailing brand
mass producer & online. value position.
resulting in
economies of
scale.
Porters fiPorters five forces; Eg: LUX
1) Degree of Rivalry: LUX has got a huge market shares in India & Bangladesh. Focus on other brands
in soap category in India there are lot of strong brands present in market. Vivel, Cinthol & Pears led to
decline in profit level. Competition level becomes even. Dettol & other companies led to little bit decline
in LUX profit level. It is earning lot of revenues lot of countries around world. Degree of rivalry is
especially high.
2) Bargaining power of buyers: Buy products at an cheaper rate. Price level is high and some
consumers do not feel intrested in buying LUX as other brand offers good quality product in soap
category at cheaper rate. High bargaining power somehow causes Unilever to use some market share.
3) Bargaining power of suppliers: Supply raw materials to soap producing companies as they compete
among each other. It enjoys facilities to get suppliers providing good quality of raw materials at a cheaper
rate. The bargaining power of suppliers is very low.
4) Threat of substitutes: Direct & Indirect substitutes for LUX available in market. Face & Body wash
are two major threat for LUX as substitutes. More conscious of skin & health as they are focusing on
appropriate things as they should be using LUX as a huge threat in terms of revenue & also compromising
market share. There is adoption of soaps from other brands due to premium price and LUX changes on
its consumers.
5) Threat of New Entrants (HIGH):The main raw material to produce soap is palm oil which is
relatively high in price. However Palm oil is a way cheaper in China & Malaysia. So there is always a
chance for new companies to get raw materials at a cheaper rate & serving a specific market segment
profitability offering their products in soap category at lower prices while causing decline to LUX market
share. So vulnerability creates Threat of new entrants.
BCG Matrix of HUL

· Stars-is a specialty unit that has a substantial piece of the overall industry in a quickly developing
industry. Stars produce a lot of money on account of their solid relative piece of the overall industry,
additionally expend a lot of money in view of their high development rate; consequently the money in
every bearing roughly nets out. On the off chance that a star can keep up its substantial piece of the
overall industry, it will end up being a cash cow when the market development rate decays.
HUL stars are AXE Deodorant,Fair & Lovely,Lakme Anti Ageing,Vim,Wheel,Surf Excel, Lifebuoy,
Lux, Kwality Walls, Kissan Jam & Knor Soup.All these products are contributing maximum to the
market share. Taking AXE Deodorant as an example is contributing almost 25% in the market share.
· Cash Cows – a specialty unit that has a vast piece of the pie in develop, moderate developing
industry. As pioneers in a develop showcase, cash cows display an arrival on resources that is
more prominent than the market development rate, and along these lines create more money than
they expend. The cash cows of HUL are Clinic Plus, Sunsilk, Vaseline,Red Label
Sunsilk made the biggest group for Indian young ladies which are – www.sunsilkgangofgirls.com.
Sunsilk inventively thinks of a whole item scope of Soft and Smooth, Thick and Long, Damaged
Repair, Hair Fall Solution, Stunning Black Shine and Hostile to Dandruff. Similar steps are taken for
the other cash cows as well.
· Question Marks- a specialty unit that has a little piece of the pie in a high development showcase.
Question marks are becoming quickly and in this way devour huge measures of money, but since
they have low pieces of the pie they don’t produce much money. The outcome is huge net money
utilization. A question mark can possibly pick up piece of the pie and turn into a star, and in the
end a money dairy animals when the market development moderates. The HUL question marks
are Close Up, Pepsodent, Annapurna, Fair & Lovely Menz Active, Domex, Rin, Breeze, Taj
Mahal Tea Bags, Kissan Ketchup & Knor Meal Maker.
Since they are the new participants or strugglers in the market for real share where the market is
changing at a high pace, endeavors are being made to ensure that the pick up on their piece of the pie.
Pepsodent went into a noteworthy change of its Germ check and Whitening toothpaste by thinking
of the Sensitive and Gum care scope of toothpastes. Knor soups thinking of the whole scope of soups
running from tomato blend vegetable, Chinese to chicken soups.
· Dogs– a specialty unit that has a little piece of the overall industry in a develop industry. A dog
may not require significant money since they have low piece of the pie and a low development
rate and in this manner neither create nor expend a lot of money, and they are money traps as a
result of the cash tied up in a business that has minimal potential and the capital that could better
be conveyed somewhere else.
The dogs of HUL are Taaza,Brooke Bond Sehatmand & Bru
Brooke Bond Sehatmad ought to be sold off in light of the fact that the client tastes and wholesome
necessities have changed from tasting vitamin B improved tea to hostile to oxidants improved tea.
With the advancement of green tea, the request by wellbeing cognizant people is a greater amount of
against oxidants rather vitamin B, as natural products give an abundant wellspring of vitamins.
Ands off Matrix: Cocoa cola

· Market Penetration:(EXISTING Market, EXISTING Product)
This strategy involves an attempt to increase market share within existing industries, either by selling
more product to established customers or by finding new customers within these markets – typically
by adapting the ‘Promotion’ element of the Marketing Mix. Due to the incredible strength of Coca-
Cola’s brand, the company has been able to utilise market penetration on an annual basis by creating
an association between Coca-Cola and Christmas, such as through the infamous Coca-Cola Christmas
advert, which has helped boost sales during the festive period.
· Product Development: (EXISTING Market, NEW Product)
This involves developing new products for existing markets by thinking about how new products can
meet customer needs more closely and outperform competitors. A prime example of this was the
launch of Cherry Coke in 1985 Coca-Cola’s first extension beyond its original recipe prompted by
small-scale competitors who had identified a profitable opportunity to add cherry-flavoured syrup to
Coca-Cola and resell it. The company has since gone on to successfully launch other flavoured
variants including lime, lemon and vanilla.
· Market Development:(NEW Market, EXISTING Product)
Thirdly, the market development strategy entails finding a new group of buyers for an existing
product. The launch of Coke Zero in 2005 was a concept being identical to Diet Coke; the great taste
of Coca-Cola but with zero sugar and low calories. Diet Coke was launched more than 30 years ago,
and whilst more females drink it every day than any other soft drink brand, it came to light that young
men shied away from it due to its consequential perception of being a woman’s drink. With its shiny
black can and polar opposite advertising campaigns, Coke Zero has successfully generated a more
‘masculine’ appeal.
· Related Diversification:(NEW Market, NEW Product)
This involves the production of a new category of goods that complements the existing portfolio, in
order to penetrate a new but related market. In 2007, Coca-Cola spent $4.1 billion to acquire Glaceau,
including its health drink brand Vitamin water. With a year-on-year decline in sales of carbonated
soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading less-sugary future
– so has jumped on board the growing health drink sector.
· Unrelated Diversification: (NEW Market, NEW Product)
Finally, unrelated diversification entails entry into a new industry that lacks important similarities
with the company’s existing markets. Coca-Cola generally avoids risky adventures into unknown
territories and can instead utilise its brand strength to continue growing within the drinks industry.
That said, Coca-Cola offers official merchandise from pens and glasses to fridges, therefore
exploiting its strong brand advocacy through this strategy.
Consumer & customer

Eg Lakme- A beauty product its main focus on ladies and teenage girls where its most required in day to day
bases for looking young and to look better wherever you are.
New product Development
Maggi
· Introduced in 1982
· Nestle brand of Instant soups, ketchup & noodles
· Brand element of name, signature, colour ,size ,tagline, packaging
· Failure of noodles happen due to huge amount of lead in it which is harmful for customers and
later on they improved and check what was their fault and then noodles was again launch in
market which was healthy and will not affect the customers
· Launch the cup noodles which is easy for people to carry in bag or for travelling purpose
Pricing strategies
DETTOL
· Geographic-The price of our product, hand sanitiser is affected by the geographical areas. The need
basis is different in different places and that is why the pricing of the commodity is decided. The need
basis determines the price as different people have different demands.
· Premium-This kind of pricing is done is done when the product is sold to exquisite places like airports,
hotels and other places with high end boutiques and duty free shops. In such kind of pricing the prices
are hiked more than the maximum retail price and then they are sold to places where MRP is not
applicable,
· Discount & Allowances-It is an affordable product of Rs. 50, a lot of people are motivated to buy it
for when it is available for a discount. Dettol also gives away the product as a free commodity on
Wednesdays at the Big Bazaar against the bill. Such kind of strategies helps the sales to boom.
Distribution
Pears soap
Distribution channel that is use by the Pears Soap is done through its Parent company “Hindustan Unilever
Limited” which has got 1000 products in the market with 2700 wholesalers, and after that wholesalers
distribute the products in every part of the India like in medical stores, grocery shops, Kirana shops which
has got the most market share in India, super markets like Big Bazaar, Reliance Fresh etc. So this type of
distribution channel HUL is selling Pears Soap to every household by covering a vast area. There are different
variant of the Pears Soap that are available in the market according to the need of the consumer behaviour
like consumer who have pimple there is a different pears soap for them.
PROMOTION & INSIGHTS:

· “Airtel” – airtel was always the top most. Airtel cannot grow only on the base of telecom.
Therefore they started data service. This was done from segmentation, they focused on youth.
Especially the characteristics of the youth. Social has many friends, but in real very few.
· When you get addicted to data, the next step is ‘share’. ‘jo tera hai vo mera hai’ for internet.
STPD of Toothpaste
SENSODYNE
Segmentation:
On the basis of segmentation we can say there is need of product which offers clean and focused benefits of
oral care problem which affects 57% of consumers worldwide.
Geographic: rural & urban
Behaviour: people with various teeth problem
Demography: Adult and children
Targeting:
It is targeted for people having sensitive teeth products are priced higher than regular toothpaste it undergo
teeth whitening.
Positioning:
World’s no 1 toothpaste recommended by dentist to tackle it.
Diffrenciation:
It indicates that people are aware about problem willing to do something about it .
COLGATE
Segmentation:
Targeting:
Cibaca : for kids
Max fresh: for people who want fresh breath

Active salt: Tooth cavity for prone people
Colgate Total: for all round oral health
Colgate Sensitive: for segment of people with sensitive teeth
Colgate Whitening: people suffering form plaque
Colgate 2 in 1: designing strong teeth and fresh breadth
Positioning:Provides decay protection, strong teeth, germ protection and fresh breadth.With different style
and taste for segment.Advertisement campaign has to supply these position
Diffrenciation:
Compared to competitors they have longer assortment of oral care of the product within wide price range.
Larger market share offers competitive price products
PEPSODENT
Segmentation:
Demography: Adult and children; Income- low, medium , high
Targeting:
· Male, Female & Kids by different varieties
· Mother and kids in advertisement
· Complete family & family care product
Positioning:
Long lasting protection for germs fight for it after brushing.
Mothers worry about their kids like what they eat the impact is about dental health using their insight that
pepsodent has launched Dishoom Dishoom Ad and said “let pepsodent fight germs for you”.
Their campaign has a bollywood superstar and dotting father shahrukh khan to play cool papa to son pappu
to bring forth the benefits of brushing.
Diffrenciation
· Campaign called BOOTH campaign to expand their market and booth products.
· Launched pepsodent data insurance in partnerships with new india insurance.

· With effective campaign they have made 12 lakh kids to brush their teeth.
DABUR
Segmentation:
Based on psychographic
Divided into natural and ayurvedic toothpaste products rather than other toothpaste product leading chemical
especially leading brands like colgate, pepsodent etc. segmented to kids, adults & senior citizens .
Targeting:
Babool - Yellow teeth, swollen gums, tooth ache food lodgement, extensive pain white eating.
Meswak- cavities & teeth misalignment, teeth sensitivity , bleeding gums ,bad breadth ,tooth decay and
broken tooth caused due to injuries.
Dabur Red-Tooth decay, dryness of mouth, Tooth loss, Gum diseases
Positioning:
Dabur red- keep dental problems away and has positioned tooth paste in budget segment
Contains 13 active ayurvedic indgredients like pudina , Tomar to keep dental problems away
Babul- natural tooth paste packed with medicinal benefits of babul tree
Meswak – complete oral care ,Positioned in premium segment, scientifically herbal toothpaste with pure
extract of meswak plant ‘salvadore persica’ the famous toothbrush tree for centuries.
Diffrenciation:
Ø Old is gold- Dabur is the oldest traditional product and Dabur red toothpaste has become 100 crores
brand within 5 years of its birth.
Ø Non fluoride toothpaste
Ø Biggest competitor is Himalaya
Ø Diffrenciate itself by herbs like babul, neem, meswak etc since ancient vedic age.
Consumer behaviour
Big bazar
· Options-more likely to choose an alternative
· Alternatives are of more compromise choice a choice between 2 alternatives one priced lower than
other in addition of third choice priced higher than both which will increase market share will be more
expensive than both.
· Floor Display sets of three or more choices, well known high prices brand displayed to organize a
floor displayed a model type
· Brands is about the well known brands it may expensive lesser known and lesser expensive
· Preferences is about the multiple products to select the best one
· Modification is feature or premium which has little or no value to consumers it depends on how the
professional use these findings making consumers to benefit their own behaviour.
PRODUCT LINE
Cocoa-cola:
AERATED BEVERAGES-Cocoa -cola,Diet coke,Thumbs up,Sprite,Fanta,Limca &Kinley
ENERGY DRINK-Burn
BOILED WATER-Kinley
VENDING MACHINES-Georgis vending solutions
TEA & COFFEE -Georgia Gold & Georgia Products
FRUIT BASED BEVERAGES-Maza and Minute Maid
Market challenger
· Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at
a low price with the same level of the quality as that of other competitors in the market.
on these areas.
· Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina”
· Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention
to harass each other. When the coca-cola was the official partner of the world cup, the Pepsi
counter-attacked it by using the punch line “ Nothing official about it”.
Market leader
Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also in marketing
they enjoy beverage of world-class marketing is what makes Coca-Cola the world leader in creative
communication.
Market nicher
· Specific customer speacialist: High performance carburetors to specific brand like BMW, Porche,
Ferrari
· Product /Product line speacialist: Amul offers a series of closely related products such as milk
,butter ,ghee ,yoghurt ,ice-cream, chocolates, etc
Market follower
· Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities
from each other by changing the style of the automobile. Adapters can soon become leaders as well
· Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV
revolution to India but was soon imitated by Videocon, Airtel, Reliance and others.
· Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, than that’s cloning.
· Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other
products in the market which are counterfeited.
PPve forces; Eg: LUX
1) Degree of Rivalry: LUX has got a huge market shares in India & Bangladesh. Focus on other brands
in soap category in India there are lot of strong brands present in market. Vivel, Cinthol & Pears led to
decline in profit level. Competition level becomes even. Dettol & other companies led to little bit decline
in LUX profit level. It is earning lot of revenues lot of countries around world. Degree of rivalry is
especially high.
2) Bargaining power of buyers: Buy products at an cheaper rate. Price level is high and some consumers
do not feel intrested in buying LUX as other brand offers good quality product in soap category at cheaper
rate. High bargaining power somehow causes Unilever to use some market share.
3) Bargaining power of suppliers: Supply raw materials to soap producing companies as they compete
among each other. It enjoys facilities to get suppliers providing good quality of raw materials at a cheaper
rate. The bargaining power of suppliers is very low.
4) Threat of substitutes: Direct & Indirect substitutes for LUX available in market. Face & Body wash
are two major threat for LUX as substitutes. More conscious of skin & health as they are focusing on
appropriate things as they should be using LUX as a huge threat in terms of revenue & also compromising
market share. There is adoption of soaps from other brands due to premium price and LUX changes on
its consumers.
5) Threat of New Entrants (HIGH):The main raw material to produce soap is palm oil which is relatively
high in price. However Palm oil is a way cheaper in China & Malaysia. So there is always a chance for
new companies to get raw materials at a cheaper rate & serving a specific market segment profitability
offering their products in soap category at lower prices while causing decline to LUX market share. So
vulnerability creates Threat of new entrants.
BCG Matrix of HUL
· Stars-is a specialty unit that has a substantial piece of the overall industry in a quickly developing
industry. Stars produce a lot of money on account of their solid relative piece of the overall industry,
additionally expend a lot of money in view of their high development rate; consequently the money in
every bearing roughly nets out. On the off chance that a star can keep up its substantial piece of the
overall industry, it will end up being a cash cow when the market development rate decays.
HUL stars are AXE Deodorant,Fair & Lovely,Lakme Anti Ageing,Vim,Wheel,Surf Excel, Lifebuoy,
Lux, Kwality Walls, Kissan Jam & Knor Soup.All these products are contributing maximum to the
market share. Taking AXE Deodorant as an example is contributing almost 25% in the market share.
· Cash Cows – a specialty unit that has a vast piece of the pie in develop, moderate developing
industry. As pioneers in a develop showcase, cash cows display an arrival on resources that is
more prominent than the market development rate, and along these lines create more money than
they expend. The cash cows of HUL are Clinic Plus, Sunsilk, Vaseline,Red Label
Sunsilk made the biggest group for Indian young ladies which are – www.sunsilkgangofgirls.com.
Sunsilk inventively thinks of a whole item scope of Soft and Smooth, Thick and Long, Damaged
Repair, Hair Fall Solution, Stunning Black Shine and Hostile to Dandruff. Similar steps are taken for
the other cash cows as well.
· Question Marks- a specialty unit that has a little piece of the pie in a high development showcase.
Question marks are becoming quickly and in this way devour huge measures of money, but since
they have low pieces of the pie they don’t produce much money. The outcome is huge net money
utilization. A question mark can possibly pick up piece of the pie and turn into a star, and in the
end a money dairy animals when the market development moderates. The HUL question marks
are Close Up, Pepsodent, Annapurna, Fair & Lovely Menz Active, Domex, Rin, Breeze, Taj
Mahal Tea Bags, Kissan Ketchup & Knor Meal Maker.
Since they are the new participants or strugglers in the market for real share where the market is
changing at a high pace, endeavors are being made to ensure that the pick up on their piece of the pie.
Pepsodent went into a noteworthy change of its Germ check and Whitening toothpaste by thinking
of the Sensitive and Gum care scope of toothpastes. Knor soups thinking of the whole scope of soups
running from tomato blend vegetable, Chinese to chicken soups.
· Dogs– a specialty unit that has a little piece of the overall industry in a develop industry. A dog
may not require significant money since they have low piece of the pie and a low development
rate and in this manner neither create nor expend a lot of money, and they are money traps as a
result of the cash tied up in a business that has minimal potential and the capital that could better
be conveyed somewhere else.
The dogs of HUL are Taaza,Brooke Bond Sehatmand & Bru
Brooke Bond Sehatmad ought to be sold off in light of the fact that the client tastes and wholesome
necessities have changed from tasting vitamin B improved tea to hostile to oxidants improved tea.
With the advancement of green tea, the request by wellbeing cognizant people is a greater amount of
against oxidants rather vitamin B, as natural products give an abundant wellspring of vitamins.
Ands off Matrix: Coca cola
· Market Penetration:
This strategy involves an attempt to increase market share within existing industries, either by selling
more product to established customers or by finding new customers within these markets – typically
by adapting the ‘Promotion’ element of the Marketing Mix. Due to the incredible strength of Coca-
Cola’s brand, the company has been able to utilise market penetration on an annual basis by creating
an association between Coca-Cola and Christmas, such as through the infamous Coca-Cola Christmas
advert, which has helped boost sales during the festive period.
· Product Development:
This involves developing new products for existing markets by thinking about how new products can
meet customer needs more closely and outperform competitors. A prime example of this was the
launch of Cherry Coke in 1985 Coca-Cola’s first extension beyond its original recipe prompted by
small-scale competitors who had identified a profitable opportunity to add cherry-flavoured syrup to
Coca-Cola and resell it. The company has since gone on to successfully launch other flavoured
variants including lime, lemon and vanilla.
· Market Development:
Thirdly, the market development strategy entails finding a new group of buyers for an existing
product. The launch of Coke Zero in 2005 was a concept being identical to Diet Coke; the great taste
of Coca-Cola but with zero sugar and low calories. Diet Coke was launched more than 30 years ago,
and whilst more females drink it every day than any other soft drink brand, it came to light that young
men shied away from it due to its consequential perception of being a woman’s drink. With its shiny
black can and polar opposite advertising campaigns, Coke Zero has successfully generated a more
‘masculine’ appeal.
· Related Diversification:
This involves the production of a new category of goods that complements the existing portfolio, in
order to penetrate a new but related market. In 2007, Coca-Cola spent $4.1 billion to acquire Glaceau,
including its health drink brand Vitamin water. With a year-on-year decline in sales of carbonated
soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading less-sugary future
– so has jumped on board the growing health drink sector.
· Unrelated Diversification:
Finally, unrelated diversification entails entry into a new industry that lacks important similarities
with the company’s existing markets. Coca-Cola generally avoids risky adventures into unknown
territories and can instead utilise its brand strength to continue growing within the drinks industry.
That said, Coca-Cola offers official merchandise from pens and glasses to fridges, therefore
exploiting its strong brand advocacy through this strategy.
Consumer & customer
Eg Lakme- A beauty product its main focus on ladies and teenage girls where its most required in day to day
bases for looking young and to look better wherever you are.
New product Development
Maggi
· Introduced in 1982
· Nestle brand of Instant soups, ketchup & noodles
· Brand element of name, signature, colour ,size ,tagline, packaging
· Failure of noodles happen due to huge amount of lead in it which is harmful for customers and
later on they improved and check what was their fault and then noodles was again launch in
market which was healthy and will not affect the customers
· Launch the cup noodles which is easy for people to carry in bag or for travelling purpose
Pricing strategies
DETTOL
· Geographic-The price of our product, hand sanitiser is affected by the geographical areas. The need
basis is different in different places and that is why the pricing of the commodity is decided. The need
basis determines the price as different people have different demands.
· Premium-This kind of pricing is done is done when the product is sold to exquisite places like airports,
hotels and other places with high end boutiques and duty free shops. In such kind of pricing the prices
are hiked more than the maximum retail price and then they are sold to places where MRP is not
applicable,
· Discount & Allowances-It is an affordable product of Rs. 50, a lot of people are motivated to buy it
for when it is available for a discount. Dettol also gives away the product as a free commodity on
Wednesdays at the Big Bazaar against the bill. Such kind of strategies helps the sales to boom.
Distribution
Pears soap
Distribution channel that is use by the Pears Soap is done through its Parent company “Hindustan Unilever
Limited” which has got 1000 products in the market with 2700 wholesalers, and after that wholesalers
distribute the products in every part of the India like in medical stores, grocery shops, Kirana shops which
has got the most market share in India, super markets like Big Bazaar, Reliance Fresh etc. So this type of
distribution channel HUL is selling Pears Soap to every household by covering a vast area. There are different
variant of the Pears Soap that are available in the market according to the need of the consumer behaviour
like consumer who have pimple there is a different pears soap for them.
PROMOTION & INSIGHTS:
· “Airtel” – airtel was always the top most. Airtel cannot grow only on the base of telecom.
STPD of Toothpaste
SENSODYNE
Segmentation:
On the basis of segmentation we can say there is need of product which offers clean and focused benefits of
oral care problem which affects 57% of consumers worldwide.
Targeting:
It is targeted for people having sensitive teeth products are priced higher than regular toothpaste it undergo
teeth whitening.
Positioning:
World’s no 1 toothpaste recommended by dentist to tackle it.
Diffrenciation:
It indicates that people are aware about problem willing to do something about it .
COLGATE
Segmentation:
Targeting:
Cibaca : for kids
Max fresh: for people who want fresh breath
Active salt: Tooth cavity for prone people
Colgate Total: for all round oral health
Colgate Sensitive: for segment of people with sensitive teeth
Colgate Whitening: people suffering form plaque
Colgate 2 in 1: designing strong teeth and fresh breadth
Positioning:Provides decay protection, strong teeth, germ protection and fresh breadth.With different style
and taste for segment.Advertisement campaign has to supply these position
Diffrenciation:
Compared to competitors they have longer assortment of oral care of the product within wide price range.
Larger market share offers competitive price products
PEPSODENT
Segmentation:
Demography: Adult and children; Income- low, medium , high
Targeting:
· Male, Female & Kids by different varieties
· Mother and kids in advertisement
· Complete family & family care product
Positioning:
Long lasting protection for germs fight for it after brushing.
Mothers worry about their kids like what they eat the impact is about dental health using their insight that
pepsodent has launched Dishoom Dishoom Ad and said “let pepsodent fight germs for you”.
Their campaign has a bollywood superstar and dotting father shahrukh khan to play cool papa to son pappu
to bring forth the benefits of brushing.
Diffrenciation
· Campaign called BOOTH campaign to expand their market and booth products.
· Launched pepsodent data insurance in partnerships with new india insurance.
· With effective campaign they have made 12 lakh kids to brush their teeth.
DABUR
Segmentation:
Based on psychographic
Divided into natural and ayurvedic toothpaste products rather than other toothpaste product leading chemical
especially leading brands like colgate, pepsodent etc. segmented to kids, adults & senior citizens .
Targeting:
Babool - Yellow teeth, swollen gums, tooth ache food lodgement, extensive pain white eating.
Meswak- cavities & teeth misalignment, teeth sensitivity , bleeding gums ,bad breadth ,tooth decay and
broken tooth caused due to injuries.
Dabur Red-Tooth decay, dryness of mouth, Tooth loss, Gum diseases
Positioning:
Dabur red- keep dental problems away and has positioned tooth paste in budget segment
Contains 13 active ayurvedic indgredients like pudina , Tomar to keep dental problems away
Babul- natural tooth paste packed with medicinal benefits of babul tree
Meswak – complete oral care ,Positioned in premium segment, scientifically herbal toothpaste with pure
extract of meswak plant ‘salvadore persica’ the famous toothbrush tree for centuries.
Diffrenciation:
Ø Old is gold- Dabur is the oldest traditional product and Dabur red toothpaste has become 100 crores
brand within 5 years of its birth.
Ø Non fluoride toothpaste
Ø Biggest competitor is Himalaya
Ø Diffrenciate itself by herbs like babul, neem, meswak etc since ancient vedic age.
Consumer behaviour
Big bazar
· Options-more likely to choose an alternative
· Alternatives are of more compromise choice a choice between 2 alternatives one priced lower than
other in addition of third choice priced higher than both which will increase market share will be more
expensive than both.
· Floor Display sets of three or more choices, well known high prices brand displayed to organize a
floor displayed a model type
· Brands is about the well known brands it may expensive lesser known and lesser expensive
· Preferences is about the multiple products to select the best one
· Modification is feature or premium which has little or no value to consumers it depends on how the
professional use these findings making consumers to benefit their own behaviour.
PRODUCT LINE
Cocoa-cola:
AERATED BEVERAGES-Cocoa -cola,Diet coke,Thumbs up,Sprite,Fanta,Limca &Kinley
ENERGY DRINK-Burn
BOILED WATER-Kinley
VENDING MACHINES-Georgis vending solutions
TEA & COFFEE -Georgia Gold & Georgia Products
FRUIT BASED BEVERAGES-Maza and Minute Maid
Market challenger
· Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi
at a low price with the same level of the quality as that of other competitors in the market.
on these areas.
· Encirclement Attack: The FMCG industry applies this attack more aggressively with the
Market leader
Coca- cola
communication.
Market nicher

Ferrari
Market follower
· Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, than that’s cloning.
· Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other
Marketing Application and Consumer Behaviour
Shoanna Dean
Roll No. 75
PGDM-II
Consumer and Customer
The difference between a consumer and customer is subtle yet important to understand. Essentially, A
consumer is a person who uses or consumes a product. Every person is a consumer of goods at some
level. If you eat food and wear clothes, you’re consuming it. A customer, on the other hand, is a one who
purchases the goods not necessarily for his or her own use. For example, say you purchase a brownie
from a bakery. You arrive at college and give the brownie to your friend to eat as a sweet gesture. In this
instance, you are the customer, and your college friend is the consumer.
Another key point in the consumer vs customer discussion is that customers can be businesses that buy
and then resell products. In this regard, they are customers but not consumers of the products they
purchase. They are reselling for another consumer to finally use the product.
For example, Parents buying anything for their children, be it clothes, shoes, bags, notebooks, pencils,
chocolate. The parents are the customers while the child becomes the consumer of the product. At home,
the use of a water purifier Pureit, which is the world’s most advance range of in-home water purifiers that
are non-electric. Here, the customer is the who purchases it for the house and the consumers become the
ones who drink safe and purified water from it.
NEW PRODUCT DEVELOPMENT

New product development is a process undertaken by the company to introduce newer products or services
in the market. Existing products may be technologically outdated, you have different segments to target or
you want to cannibalize an existing product or service. In such cases, New product development is the
answer for the company. Although it differs by industry, it can essentially be broken down into 7 stages
which are:
1. Idea Generation
2. Idea screening
2. Concept testing and development
3. Business Analysis
4. Product testing
5. Market Testing and
7. Commercialization
To explain it with the help of an example, let us look at the start-up Urban Clap
It was started in 2014 by three young men with a big idea—Abhiraj Bhal, Varun Khaitan, and Raghav
Chandra—who in barely five years have already made UrbanClap the go-to platform for urban Indians
looking for anything from pedicures to painting houses. The idea was to redefine how local services and
servicemen were being hired in India. The founders saw opportunity in the broken system of how the
country connected with various service providers.
The trio realised there was a gap between the way people found services and in the way people
connected with the service providers. Using their personal experiences and realising that even in 2014,
people had a difficulty in finding services they really needed. UrbanClap, as a company was formed by
realising this need and by essentially turning the Yellow Pages format into an online platform. The
Gurugram-based company is a digital service that connects people with service professionals from
plumbers and electricians to beauticians and yoga instructors—without any middlemen. The UrbanClap
founders started aggregating service providers on the one hand and building an online platform on the
other, enabling customers to request services online through their website or mobile application.
They are now India’s largest home services startup which has also forayed into other countries and expands
to Australia after its success in the UAE.
Thus, an example of New Product Development in this case can be understood to see how it is feasible in
the case of services as well.
Pricing Strategies
Pricing strategy is a model or a method used to establish the best price for a product or service. They help
you choose prices that maximize profits and shareholder value while considering consumer and market
demand.
Pricing strategies take into account many of your business factors, like revenue goals, marketing
objectives, target audience, brand positioning, and product attributes. They’re also influenced by external
factors like consumer demand, competitor pricing, and overall market and economic trends. Some of the
main pricing strategies are:
1. Competition based:
Also called existing market rate or going rate pricing. With competition-based pricing, you can price your
products slightly below your competition, the same as your competition, or slightly above your competition
For example, when Tata Harrier was launched, its price was just below the starting range price of the Jeep
Compass in the XUV car range with almost similar product features.
2. Economy Pricing: Low cost marketing, for eg, Indigo and GoAir which are low cost airlines in India
which have a lower priced tickets compared to Vistara and Air India. In hotels, Oyo rooms offer economy
pricing throughout the year.
3. Psychological Pricing: Many retailers price their products at 199, 299,599 to play the minds of the
customer who thinks it is cheaper than 200,300, 600 Rupees. For example, Fbb and Pantaloons in the
clothing retail sector follow this strategy.
4. Value driven pricing: Fashion industry brands use this strategy more often than others. For eg, Gucci,
Michael Kors, Marks and Spencers. Also, Medication and Pharma industry.
5. Market skimming: Is used heavily by Smartphone Brands who initially price the product higher and
when newer models are launched they slowly slide the price downwards. For example, Samsung Note
series and Galaxy series
6. Penetration Pricing: One Plus used this strategy by offering a lower price for its product offering
specifications and features as good as the high end smartphones in order to gain foothold in the smartphone
segment when it was first launched in 2012.
7. Discount Pricing: Many foo franchises use this strategy to gain footfall during weekdays. For eg,
Barbeque nation, China Bistro, Global fusion offers on weekdays and buy 5 get 1 free offers.
8.Price Bundling: Head and Shoulders bundles Shampoo and conditioner together and charges a lesser
price. Maybelline New York sells bundles different cosmetics such as liner, kajal, mascara, eye shadow and
prices it at a much lower cost.
9. Product Line Pricing: Lakme has medium end range of products in the Lakme 9 to 5 for working women
and Lakme Absolute product range which is at a higher end endorsed by Kareena Kapoor.
Distribution
To understand 3 tier distribution, let’s take a look at Amul India’s Distribution Channels.
Amul is an Indian Dairy co-operative, based at Anand in the state of Gujrat, india and formed in 1946, it is
a brand managed by a co-operative body, the Gujrat Co-operative Milk Marketing Federation Ltd.
(GCMMF). Amul spurred India’s White Revoltuion, which made the country the world’s largest producer
of milk and milk products, Amul products are available in over 500,000 retail outlets across India through
its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory
of the entire range of products. GMCMMF has 42 regional distribution centres in India and exports to more
than 15 countries.
The six zones are: Delhi Zone, Ahmedabad Zone, Kolkata Zone, Chennai Zone, Mumbai Zone and
Guwahati Zone AMUL has 47 sales offices (depots) across the country, above 5000 distributors and over
10 lakh retailers in the country. In Gujarat, there are 15 Cooperative Milk Producers unions present and
each of these member unions produces different milk and milk products. Now the products are produced
using the following structure: All the milk and milk products produced by the different member unions are
stored at the main mother depot located in Anand, Gujarat. From the mother depot, based on the orders
received from the 47 clearing and forwarding agents (C&FA) across the country the goods get supplied to
their depots for distribution.
Tier 1: Village Dairy Co-operative society (DSC) is formed by milk producers. Each DSC has a milk
collection centre, members milk is tested for quality with payments based on the percentage of fat and SNF
Tier 2: District Co-operative Milk Producers’ Union is owned by dairy cooperative societies. Union buys
also societies milk. Processes and markets fluid milk and products and also provides a variety of services to
the VDSC
Tier 3: The co-operative milk producers’ Union in a state form a state Federation which is an apex
marketing body responsible for marketing of milk and milk products of Member Unions.
Distribution function: The distributors have an area assigned to them which is done by the company itself
and they use area mapping system depending on the population and distance from the warehouse. The
distributor not only sells to retailers but also to large mass merchandiser and other outlets who order in
large quantities.
Segmentation, Targeting, Positioning and Differentiation

To understand STPD in detail, let us see the example of Hyatt which is a global hospitality company with
widely recognized industry leading brands under its umbrella. The company owns 11 brands across various
target markets. The Hyatt Group is a 5 star premium range of hotels. Hence the market segment is lifestyle
based and SEC based. Every Hyatt hotel is designed to cater to the needs of a premium guest for whom
luxury comforts and exclusive services is a part of their daily lifestyle. The properties are located at
exclusive resort destinations as well tier 1 and tier 2 cities in India. It caters to customers belonging to
A1,A2 etc class according to SEC classification ie people who constitute less than 0.5 % of the Indian
population.
1. Park Hyatt
It is Hyatt’s luxury brand, with mid-sized properties located in premier destinations and catering to affluent
people. Eg Chennai, Hyderabad and Goa
Target : Business and Leisure travelers, premium class travelers on holiday
Positioning: experience luxury on a personal level in warm and hospitable surroundings that invite you to
return time and again.
Product differentiation: World renowned architects and interior designers custom design each hotel,
brilliantly combining modern style and timeless regional trademarks. Award winning chefs create the finest
in culinary arts. Each hotel is designed to combine distinctive regional character
2. Grand Hyatt
Grand Hyatt is an example of large scale hotels that provide upscale accommodation in Goa and Mumbai
Their target customers are primarily business travelers, meetings, incentives, conventions, exhibition
(MICE business) but they also cater to other affluent individuals from SEC segments A1,A2,A3,B1,B2,B3
The Positioning of Grand Hyatt is “See and be seen Destination” hence it is has positioned itself to throw
the wedding of your dreams, plan your yearly conference or just settle in for a romantic weekend of luxury
for two.
Product differentiation: Dramatic architecture, exquisite dining options, state of the art technology; spas,
fitness centres and comprehensive business and meeting facilities.
BCG Matrix
The beauty of BCG Matrix, a Matrix developed by a group known as Boston Consulting Group, USA, is
that it seeks to place the different products of an organization in different grids such as to analyze them in a
comparative manner in terms of profitability or in terms of percentage growth in sales and market share
position, to be exact. Thus it gives an opportunity of self assessment to the organization to reassess its
product positioning and thus come out with alternative solution if the original placement of the products in
the market does not meet the desired level of growth. Thus, when all the products of the company are put in
four cells (thus it actually provides an opportunity to reassess the entire position of the company in terms of
all the products it offers to the market), the market standing of the company can be analysed in four
different classes namely, stars, cash cows, dogs and question marks.
BCG Matrix for Nestle India
Star:1. Nescafe
Not only does it have a high market share but its growth rate is also significantly high. (4) The name
Nescafe has become generic with coffee
Nescafe has witnessed a substantial growth in the present times and seems to continue dominating the
market for some time. Nestle India must look in for expanding the number of consumers in the North as it
has in the South. It kept on bringing new variants in order to hold on to its position. The market share is
firm and needs to major repositioning.
2. Cerelac:
Ceralac has become one of the leading baby food products. It has witnessed quite a long hold in its market
share with its sales increasing on a continuous basis for almost more than one and a half decade. Its
different variants have kept competitors at bay and it finds a place easily at almost every general or
provisional store in the Indian market. It is a major contributor for Nestle India’s revenues. With the
increase in population and the growth market in the country Nestle India can do much better in terms of
registering more shares by an aggressive promotional drive. It needs to take aggressive steps to enter into
those households where traditionally followed methods of feeding new born infants are followed. The
market exists for Ceralac to expand and though it is already a star, it can do much better in terms of
expanding its shares by adopting market development strategies
Cow: Maggi Noodles
Though Maggi Noodles has a significantly high market share in the Noodles market in India, the market
growth rate of Noodle consumption is not very high. (3) Though the number of repeat purchasers is high in
case of Maggi, the rate of increase among the new purchasers is not too high.
Maggi Noodles is undoubtedly the leader in the Noodles market and faces almost no competition which
might threaten its existence in near times, yet the target placement of Maggi Noodles seems to be at fault.
Instead of continuing to target the children, Maggi Noodles should now also concentrate on placing the
products for Office Executives, Mid wives, Young adults, and the elite wing of the society. (3) The need
presently is to expand the market or in fact create new markets for Maggi
Question Mark: Kit Kat

Owing to crispiness and superior quality, Kit Kat has an upper edge over its competitors. Had this survey
been made a couple of years ago, may be Kit Kat would have found the position of a Cash Cow because of
the market share it acquired in a fairly decent and yet to develop wafer-chocolates market. However, on
account of the rise of competitors, especially Perk, Kit Kat seems to have loosened up its grip in the market
and has lost some of the prominent recognition which it commanded earlier. It is placed as a Question
Mark as the brand has the potential but lack a significant market share as of now. Also, a mere
repositioning in the market segment can lead to the success of the brand
Dog: Milky Bar: It become quite popular in and around the year 2000 but it never reached the stage of a
power brand. Primary tried by the Indian consumer as a craze which laid in trying the first nonbrown
chocolate, Nestle Milky bar was a sweet chocolate with cream color. Thus the primary acceptance of Milky
bar was not based on its core qualities but on the basis of certain peculiarities which it contained,
differentiating it from other products in the same line. Milky Bar, as a chocolate, though has a growing
market, yet it has been placed as a dog on account of the inherent lack of core quality which makes it
generic with chocolates. This was the main reason why it was never considered a competitor by other
chocolate manufactures and the consumers also treated it so.
Ansoff Matrix
The Ansoff matrix is used for strategic marketing planning where it can be applied to look at opportunities
to grow revenue for a business through developing new products and services or "tapping into" new
markets. This focus on growth means that it's one of the most widely used marketing models. It is used to
evaluate opportunities for companies to increase their sales through showing alternative combinations for
new markets (i.e. customer segments and geographical locations) against products and services offering
four strategies
1. Market Penetration
2. Product Development
3. Market Development
4. Diversification
Let us take the example of Beiersdorf’s Biggest brand Nivea.
Market Penetration: Nivea lip care is a good example of the way in which Nivea is building an existing
product in an existing market. It has developed the brand by monitoring trends in the market and matching
them with existing core competencies with products such as essential, repair, rose, cherry, strawberry, pearl
and shine
New Product Development: Launch of Nivea Visage soft facial cleansing wipes as women are looking for
an easy and convenient way to remove make up in 1 step and this met their requirement
Market Development: Launch of Nivea Deodorant which was in tune with its brand value of skin care and
as a deodorant too it had features such as skin suitability, milk/skin friendly, pleasant fragrance and high
quality. It allowed it to enter the market in the more specialist deodorant segment.
Diversification: With Nivea for Men range, it was the first mass-market brand to set out to develop male
facial care/moisturizing. It targets men who value their appearance and see it as a key contributor to self-
confidence. With it, Nivea diversified into the male sector of the market. Product range included shaving
foam, gel, after shave balm. Moisturizing lotion, body wash etc.
Porter’s Five Forces.
This theory is based on the concept that there are five forces that determine the competitive intensity and
attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation.
This is useful both in understanding the strength of an organisation’s current competitive position, and the
strength of a position that an organisation may look to enter into. Strategic analysts often use Porter’s five
forces to understand whether new products or services are potentially profitable. By understanding where
power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid
mistakes.
Let us take a look at the Indian Aviation Industry
1. Bargaining power of Suppliers: Suppliers are Fuel suppliers, aircraft manufacturers and skilled
employees.
Boeing and Airbus effectively form duopoly of new jetliners manufacturers and this coupled with
fragmentation of low-cost airlines leads to high bargaining power. Relatively few fuel companies supply
fuel for aviation industry giving them a high bargaining power too. There is also an acute shortage of pilots
which makes the industry dependent on them. In an industry where reliability and safety are critical, the
quality of aircrafts and their maintenance are highly important and also the pilots who one of the main
employees looking into the safety of passengers in flight, which leads to high bargaining power of
suppliers.
Bargaining power of Buyers: Primarily individuals purchasing flights directly from the airline. Some b2b
sales to charter companies and also Ticket agents and websites such as goibibo, makemytrip, easemytrip
etc.
The growth of online price comparison sites, corporate travel expanse policies tends to strengthen buyer
bargaining power. There is low switching costs for the buyer. Airline could use loyalty programs to keep
the customer.
The power of buyers, owing to size and volume, is low because of more demand these days in India and
lesser supply. The Indian aviation sector is still in growth stage and has not reached the capacity. The no of
operating aircraft in India of all airlines is only around 600 which is a lesser capacity as compared to the
market demand as more and more travelers prefer travelling by air. Hence, the ticket prices go higher when
there is greater demand. And especially during season time and famous destination. Eg, Goa during
Christmas and New year time. Udaipur during the winter season. South destinations during monsoon.
Threat of new entrant:

Entry barriers and high and exit barriers are also high in this industry as a result of which there is low threat
of new entrants. The costs to enter the market are very high as it is a huge investment and it takes a long
time to build a successful airline. It is a risky business too as many airlines have shutdown in the recent
past in India. The time to get a flying permit license in India is more than a year. The regulations from
DGCA in India are high.
Threat of existing Rivals:
The main airlines doing well these days in India are the low cost ones as the Indian Aviation industry is
expanding. hence competition is high but intensity has reduced due to the expanding market and decreased
no of players over the years. There are always price wars among the low-cost airlines to gain the highest
market share as Indigo has been leading in market share since last 7-8 years currently at 47%, followed by
SpiceJet and GoAir.
Threat of substitutes: This industry has a medium substitute risk level. There are substitutes in the airline
industry. Consumers can choose other form of transportation such as a car, bus, train, or boat to get to their
destination. There is however a cost to switch. Some means of transportation can be more costly than a
plane ticket. The main cost is time. Planes are by far the fastest form of transportation available. Airlines
surpass all other forms of transportation when it comes to cost, convenience, and sometimes service.
Consumers do sometimes choose other methods for various reasons such as cost if they are not traveling
very far which raises the risk.
Product Life Cycle:
This concept is used by management and by marketing professionals as a factor in deciding when it is
appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging.
The stages of Product Life cycle are:
1 Introduction
2. Growth
3. Maturity
4. Decline
Lets take the example of Nokia
Introduction: Entered in 1995, did a Price skimming strategy and had limited distribution network through
Nokia Priority dealers and organized retail. No Promotion used as mobility factor of mobiles attracted
enough customers.
Growth: Introduced better handsets without antenna, better features such as games, alarms, ergonomic
keypad, display etc. Launched N95 to compete with Apple’s Iphone
Maturity: Followed Price Skimming in the beginning of growth stage. 3310 was approx. 21000/-. As
profits and popularity increased, prices were slashed to 5000/- in 2003 for popular models like 3310. Later
adopted the Price penetration strategy. Promotions were done to increase sales through tie-ups with
Telecom industry for post-paid users. Also, offered, Sennheiser music headset free with select models.
Decline: Upgraded its Symbian OS as its sales declines due to competition from Apple and Samsung who
had entered smartphone segment with their IOs and Android Ecosystem.
Consumer Buying Behavior
The main steps in consumer buying behavior are as follow:
1. Need Recognition (Initiator)
2. Information Search (Gatekeeper)
3. Evaluation of Alternatives (Influencer)
4. Purchase Decision (Decision maker)
5. Purchase (Buyer)
6. Consumption (User)
7. Post Purchase Evaluation
The mix of physiological arousal, emotional arousal, cognitive arousal and situational arousal together lead
to a purchase decision. Not all of them have to be present, even one is enough to influence someone to
make a purchase under a certain condition
For example, a person who wants to pursue her MBA as she wants a good career trajectory and to have
better job opportunities will see that as a need recognition for her career growth. This is stage 1.
In stage 2, she will look for information through her colleagues or friends and family who have already
done an MBA and will seek their guidance and opinions on the various ways she could do her MBA, which
are part-time, full-time or executive MBA.
In stage 3, she will evaluate the 3 alternatives and see which suits her best in terms of investment of her
time and cost and which will give the best returns
In stage 4, Since she is the decision maker she will decide to do her MBA after she has clearly listed the
benefits of each of the options and coupled with stage 5, she will also make the purchase herself since she
has saved money for her higher education and she will go ahead and pay the fees for doing a full-time
MBA as that was the most lucrative option for her. Lastly, in stage 6 and 7, she will finish her MBA and on
the basis of the placement that she gets at the college, she will evaluate the post-purchase of the education
she got from the institute.
A line of products extension is the use of the mark of a product established for a new article in the same
category of the product.
The line extensions happens when a company introduces additional articles in the same category of the
product under same mark as new flavors, forms, colors, the added, so large ingredients of the package.
Let us take the example of Procter and Gamble in India.
P&G is into home and personal care products which becomes its product width
Under its personal care, it has shampoos such as Panteen and Head and Shoulders which are also its leading
brands. Under Home care, it has Tide and Ariel which are its leading brands. Tide has varients such as Tide
detergent powder and Tide bar with whitons and Tide plus. Head and Shoulders now has Shampoo and
condition 2-in-1 along with the variety of range it offers in anti-dandruff shampoos such as Hair Retain,
Complete care for Dry Scalp, Anti Hair-fall, smooth and silky, cool Menthol, Clean and Balanced, thick
and long and silky black. This becomes its product line depth. All these products are available in many
different quantities (SKU’s). For eg, Tide is available in 100gms to 1kg packs and H&S shampoo is
available in 100ml to 650 ml range
Market Leader
1. Increasing the Total Market: Netflix who is the undisputed market leader in US, did so by
expanding geographically to 190 countries and when it came to India, it offered mobile app version
owing to the owing 4g market in India.
2. Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk
3. Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100
crore Indian-made brand Vim in a competitive dish wash market. It was able to check the attack of
relations.
4. Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner
the market share of HMT watches in the early 1990s.
5. Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu
markets, TVS decided to expand its coverage to Ceat tyre’s hub in the north and west of India
through innovative campaigns like road rallies, road shows and attractive public campaigns.
6. Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer,
inbound and outbound tour operator, flouriest and so on. Such diversification into related areas
comes under mobile defence strategies.
7. Contraction Defence: For example, HUL decided to concentrate on its core business areas,
that is, soaps and detergents, and has emerged as the clear leader in the toilet industry.
8. Increasing the Market Share: After entering India in 2016, Xiaomi increased its market
share and is the market leader in the smartphone segment by offering lower prices and better specs
as compared to its rivals.
Market Nicher
2. Vertical level specialist: Heavy Transport firms moving heavy machinery and loads. They
have knowledge of alerting police, closing of roads, etc.
3. Customer size specialist: Bangalore malls like Bangalore central mall, High footfall (1000
+) – garuda and forum mall, Medium footfall (501-999)- central mall & majestic street, Small
footfall (<501)- Hong Kong bazaar & shangai bazaar
4. Specific customer specialist: High performance carburettors to specific brand like BMW,
Porche, Ferrari
5. Product /Product line specialist: Amul offers a series of closely related products such as
milk, butter, ghee, yoghurt, ice-cream, chocolates, etc.
Market Challenger
1. Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti
Dahi at a low price with the same level of the quality as that of other competitors in the market.
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour TV
“ Sampoorna” for the rural people and outshine the other coloured TV players who had a less focus
on these areas.
3. Encirclement Attack: The FMCG industry applies this attack more aggressively with the
4. Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand
“Aquafina” very well before the Coca Cola’s mineral water brand.
5. Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the
intention to harass each other. When the coca-cola was the official partner of the world cup, the
Pepsi counter-attacked it by using the punch line “ Nothing official about it”.
Market Follower
1. Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best
qualities from each other by changing the style of the automobile. Adapters can soon become
leaders as well because they can adapt, learn and make a better product than the higher competition.
2. Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought
digital TV revolution to India but was soon imitated by Videocon, Airtel, Reliance and others.
3. Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, than that’s
cloning.
4. Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous
Sarthak Bhatnagar | Roll No. 110 | Marketing Assignment
Marketing Basics
”Getting the Company to produce what the Consumer wants”
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in
the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.
Product Concept
New Product Development Process
1. Idea generation.
2. Idea screening.
3. Concept testing.
4. Business analysis.
5. Product development.
6. Test marketing.
7. Commercialization.
8. Review of market performance.
Pricing Concept
Pricing is the process whereby a business sets the price at which it will sell its products and services and may be a
part of the business’s marketing.
The firm searches a set of prices that maximizes profits on the total mix. Pricing is difficult because the various
products have demand and cost interrelationships and are subject to different degrees of competition
Factors for setting the price of a product are as follows :
1. Selecting the price objective ( Company decides where to position the product )
2. Determining Demand
3. Estimating Cost
a) Fixed Cost
b) Variable Cost
c) Marginal Cost
4. Analysis of Competitor’s costs, prices and offers
5. Selecting a pricing method
Pricing Strategies
1. Penetration Pricing : The price changed for products and services is set artificially low in order to gain market
share.
Example:
IKEA [Swedish furniture retailer] introduced products at very low prices, a large number of buyers is attracted,
making Ikea the biggest furniture retailer worldwide. Although the low prices make each sale less profitable, the
high volume results in lower costs and allows Ikea to maintain a healthy profit margin. In order for this new product
pricing strategy to work, several conditions must be met. The market must be highly price sensitive so that a low
price generates more market growth and attracts a large number of buyers. And economies of scale must be
possible.
RELIANCE JIO prepaid plans start from as low as Rs 19, and go up to Rs. 9,999, while postpaid plans are available at
Rs. 309, Rs. 509, and Rs. 999 denomination.
It launched its 4G service commercially on September 5, 2016 for free and crossed 50 million subscribers in just 83
days, and 100 million in 170 days, adding at an average rate of 6 lakh subscribers per day.
It extended the free usage period for Jio services to its existing and new customers till March 31, 2017reaching the
100 million user mark in the first 170 days, adding consumers at an average of 600,000 a day.
The company said that in terms of data usage it "has become the largest network globally" and plans to add one
lakh mobile sites in coming months to double the network size.
2. Skimming Pricing : Price skimming sees a company charges a higher price because it has a substantial
competitive advantage. However, the advantage tends not to be sustainable. Higher price attracts new
competitions
Example: APPLE INC. prices their innovative products higher during their initial release, because the company
knows steeper prices won’t decrease customer demand for the latest gadgets, and they benefit from the higher
short-term profit margins.
VESACE bags made up of baby crocodile skin.
One of the things to do in Maldives is to try the underwater spa in the Huvafen Fushi resort.
3. Psychological Pricing : is a pricing and marketing strategy based on the theory that certain prices have a
psychological impact.This approach is used where the marketer wants the consumer to respond on an emotional,
rather than rational basis.
Example:
Bata uses psychological pricing as its pricing strategy. It generally prices a product to the nearest lower“9”digit
figure of the actual price. For example, any commodity to be prices $10 is priced at $9.99 to lure and attract more
customers.
Bata started this strategy in terms of pricing its products long back, but it is still being implemented in Bata
Showrooms.
4. Product line Pricing : is oriented on separating goods into cost categories in order to create various quality and
feature levels in the minds of consumers. This strategy is typically adopted where you wish to market to different
customer types or wish to anchor your products. The goal of product line pricing is to maximize profits.
Example:
Unilever Surf Excel | Ariel is a marketing line of laundry detergents made by Procter & Gamble
5. Optional product pricing : is when a company sells a base product at a relatively low price, but sells
complementary accessories at a higher price.
Example: Airlines will change for optional extras such as guaranteeing a window seat or reserving a row of seats
next to each other. GO AIR charges from a range of Rs 49 to 200 per seat for web-check in.
Vegetable/ Vendor
Fruit Cost/Kg
Cost
Onion 70
Tomato 55
Potato 30
Coriander 20
Lady Finger 80
Capcicum 80
Bitter Gourd 80
Brinjal 80
Green Pea 160
Bottle Gourd 60
Snack Gourd 80
Apple 150
140
180
Orange 160
Mosambi 180
Watermelon 25
Lemon 40
Coconut 30
Pomogrenate 200
Vegetable 3577.5
Fruits 2762.5
Daily sales 6340
Monthly 190200
Yearly 2314100
Salary 37000
monthly
overhead 300
costs
Profits Daily 1636.6666

67
COGS 3170
Distribution Concept
It is one of the four elements of the marketing mix.
Distribution is the process of making a product or service available for the consumer or business user who needs it.
This can be done directly by the producer or service provider, or using indirect channels with distributors or
intermediaries
Distribution Strategies
1. Intensive Distribution : A marketing strategy under which a company sells through as many outlets as possible,
so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations,
and the like. Soft drinks are generally made available through intensive distribution.This method is particularly
useful for products like soft drinks, cigarettes.
Example: ITC [Indian Tobacco Company] has the most popular brands if cigarettes in India. The sale takes from the
largest retailers like Big Bazaar, Spencers to the smallest of paanwalas at every nook and corner in India, thus
deeply penetrated.
COCA-COLA uses an intensive distribution strategy. This is so because the manufacturer tries to distribute their
product to every outlet possible. Coke is everywhere! Super markets, gas stations, and even clothing stores; you
name the outlet, Coke is there. Soft drinks is even one of the examples used for Intensive distribution in the text.
2. Exclusive distribution : is an agreement between a distributor and a manufacturer that the manufacturer will not
sell the product to anyone else and will sell it only to the exclusive distributor. At the same time, even the exclusive
distributor has to enter the agreement that he will only sell the products of the manufacturers exclusively and will
not sell those of the competition. This ways, the market is an open ground for the manufacturer and the distributor
and they have complete control on the distribution of the product.
Example:
JAHUAR [Tata Group] is sold through exclusive authorized dealerships that make it available to the end customers.
Jaguar has its own global logistics network to support the movement of Vehicles from the manufacturing site to
sales site/ showrooms. It has a network of 2700+ dealerships out of which 1000+ is jointly branded by Jaguar &
Land Rover.
3. Selective distribution : is a distribution approach where selective and few outlets are chose through which the
product is made available to the customers. Unlike intensive distribution, not all available outlets are targeted and
neither is it like exclusive distribution where there is only one outlet.
A few outlets with calculated potential are identified and then they are given the rights to stock and sell the
offerings of a company.
Example:
APPLE INC. uses a selective distribution strategy, which involves some degree of exclusivity that could limit market
reach (Greenspan, 2015). This means that Apple has exclusively authorized retailers that can sell their products.
Despite the broad range of retailers mentioned earlier, Apple is selective in regards to its distribution, not allowing
popular retailers like Sears, JCPenny, Bed, Bath & Beyond to sell their products. These retailers are particularly
excluded because they do not reach certain consumers. Some people live in more rural areas and don’t always feel
the need to travel, thus not frequenting these retailers. Even though Apple has provided its product to a lot of
retailers, many don’t always carry every possible product available to customers.
Direct and Indirect Channels
Direct channels allow the customer to buy goods directly from the manufacturer, while an indirect channel moves
the product through other distribution channels to get to the consumer. Firms that use direct distribution require
their own logistics teams and transport vehicles.
Logistics Vs Distribution
A prime difference is that logistics consists of more factors relating to planning and information flow; whereas
distribution is more related to the physical movement of the goods. Logistics involves planning, designing,
coordination, management, and improvement in the processes involving goods and resources.
Promotion Concept
Any campaign or promotional strategy is based on insights.
Sr. No Advertisement Insights
1 Liril Soap The insight is that earlier women used to egt time only while
bathing, therefore ad showed it and she forgets all her
tension
2 Idea - Idea was restricted to only a certain area, after reaching pan
India, the perception issue was idea became a national
Honey Bunny network
3 Airtel It was one of the top most companies, therefore to grow

telecomm was not the only way forward. They came up with
data sharing which focused on youth - “Jo tera hai woh mera
hai”
Follow up - “Har ek friend Zaroori hota hai”
Now vouching for the fastest data reach and speed.
4 ICICI - There was a time where they used to celebrate Women, but
nothing for men even after their selfless service and care.
“Bande achhe
hein” Thus, “Jo zimmedari nibhate hein, vo jjattate nahi hai”
5 Coca-Cola Out of the 4 P’s, place is what Coca-Cola chose - “Thanda

matlab Coca-Cola” | Hyderabad - Distribution through
paanwala, because highest penetration
Product Life Cycle
Example MAGGI
Introduction Stage
1. High-failure Rates
2. No Competition
3. Frequent product and Modification
4. Limited Distribution
5. High-marketing and product costs
6. Promotion focuses on awareness and Information 2-minute instant noodle was great success.
1. Promotional campaigns in school.

2. Advertising strategies: - focusing on kids.
3. Availability in different packages
Growth Stage
1. Increasing rate of sales

2. Entrance of competitors
3. Initial healthy profits
4. Promotion emphasizes brand ads
5. Prices normally fall
6. Development costs are recovered
7. 10 yrs back it enjoyed around 50% market share in this segment which was valued at around 250 crores.
8. In order to improve sales , NIL changed the formulation of Maggi noodles in 1997.
9. However, this proved to be a mistake, as consumers did not like the taste of the new noodles.
10. In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Over
the years, NIL also introduced several other products like soups and cooking aids under the Maggi brand.
Offered in more sizes, flavors, options
Maturity Stage
1. Declining sales growth

2. Saturated markets
3. Extending product line
4. Stylistic product changes
5. Heavy promotions to dealers and consumers
6. Prices and profits fall
7. In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2- minute noodles by
8. The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had four
variants: two chicken options and two vegetarian.
9. Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups,
Decline Stage
1. If no product innovation brought

2. Long-run drop in sales
3. Large inventories of unsold items
4. Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or adoption
of substitute products
STP - Segmentation | Target | Position
Porter’s 5 Forces Concept
Example: OLA
Rivalry Among the Competitors
1. Competition is high and rising

2. Price is not a differentiating aspect of competition. People these days look for comfort, Luxury and
availability of car.
3. Other than the fleet of vehicles, the cost of the company has increase on the technical products like mobile
apps, websites and also on call center services to attain competitive advantage.
4. Factors affecting the competitive rivalry are that there are few players in the market, Government
regulations.
Threats of New Entrants
1. VCs are investing in this industry and the new entrants are encouraged by this fact.
2. Economies of scale would be a significant factor.
3. The profitability is also affected with entry of new players as this industry has low loya; customers.
4. Barriers to entry like the government regulations. Skilled drivers etc. Affect the same.
5. Innovation in terms of booking service products and facilities to the customers, will get a higher facility for
using higher car miles, coupons.
1. The biggest substitute is the public transport. Luxury buses, rickshhaw, local taxis etc.
2. Price, availability of close competence in public transport, cheap, easy availability
3. With technological advancement companies setup meetings via video call rather than one-to-one.
Bargaining power of Buyers
1. Buyers have high bargaining power as the cost of switching is low or negligible.
2. The corporate buyers also have a say in this as they frequently avail the facility and can emphasize on
reducing the cost for service.
Bargaining power of Suppliers
1. The major supplier in this industry are car dealers and skilled drivers
2. Car dealers have reasonably high bargaining power.
3. Skilled drivers have a high bargaining power as they are high on demand.
BCG Matrix Concept: Let us consider the BCG matrix of L’Oréal for example.
Step 1: Choose the product/firm/brand: We choose the firm L’Oreal for analysis.
Step 2: Identify Market: The chosen market is the Cosmetics Industry which includes primarily- Skincare, Makeup,
Haircare, Hair colour and Fragrances.
Step 3: Calculate Relative Market Share | Tabulated below:
BCG Matrix - L’Oreal
Example:
to demonstrate BCG matrix could be the BCG matrix of Pepsico. Here are the four quadrants of Pepsico’s growth-
share matrix:
1. Cash Cows – With a market share of 58.8% in the US, Frito Lay is the biggest cash cow for Pepsico.
2. Stars – Even though Pepsi’s share in the market has been reduced to 8.4%, it’s still the star for Pepsico
because of its brand equity. Other stars are Aquafina (biggest selling mineral water brand in the USA),
Tropicana, Gatorade, and Mountain Dew.
3. Question Marks – Since it’s a mystery whether the diet food and soda industry will boom in the future and
will Pepsico’s products will find their place or not, Diet Pepsi, Pepsi Max, Quaker, etc. fall in the question marks
section of the Pepsico’s BCG matrix.
4. Dogs – As of now, there isn’t any product line that falls in the dogs section of the Pepsico’s BCG matrix.
However, seasonal and experimental products like Pepsi Real Sugar, Mtn Merry Mash-up can be inserted in
this section.
Ansoff Matrix Concept
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and
marketers devise strategies for future growth.
Market Penetration : It focuses on increasing sales of existing products to an existing market.
1. The market penetration strategy can be done in a number of ways:

2. Decreasing prices to attract existing or new customers
3. Increasing promotion and distribution efforts
4. Acquiring a competitor in the same marketplace
Product Development : It focuses on introducing new products to an existing market.
can be done in a number of ways:
1. Investing in R&D to develop new products to cater to the existing market

2. Acquiring a competitor’s product and merging resources to create a new product that better meets the
need of the existing market
3. Strategic partnerships with other firms to gain access to each partner’s distribution channels or brand
Market Development : Its strategy focuses on entering a new market using existing products.
The market development strategy can be done in a number of ways:
1. Catering to a different customer segment

2. Entering into a new domestic market (expanding regionally)
3. Entering into a foreign market (expanding internationally)
4. For example, sporting companies such as Nike and Adidas recently entered the Chinese market for
expansion. The two firms are offering the same products to a new demographic.
Diversification: It focuses on entering a new market with the introduction of new products.
1. There are two types of diversification a firm can employ:
2. 1. Related diversification: There are potential synergies to be realized between the existing business and
the new product/market.
3. 2. Unrelated diversification: There are no potential synergies to be realized between the existing business
and the new product/market.
Consumer Buying Behaviour
Product line Extension Concept
A product line extension strategy is an approach to developing new products for your existing customers or for
prospects who do not currently buy from you. Extending a product line involves adding new features to existing
products, rather than developing completely new products. This can reduce the cost of product development as
well as increase opportunities to grow your revenue.
Market leaders, challengers, followers , nichers
Market Nicher:
End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a long beard.
Also, another example is Lefty’s San Francisco is a left-handed retail store that sells school supplies, kitchen goods,
and gardening tools, and many more things for the lefties.
Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production and target
audience was initially strictly restricted to the city of Mumbai.
Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts and celebrates
jewish faith.
Product specialist: UNTUCKit brand has created a new line of products for people who do not like tucked shirts. It
gives you a feel of a tucked shirt without actually tucking it.
Specific customer specialist: Weber carburettor is a company which provides carburettors to only high end cars like
Porsche, Ferrari, BMW.
Market challenger
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the
same level of the quality as that of other competitors in the market.
Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna” for the rural
people and outshine the other coloured TV players who had a less focus on these areas.
Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to outshine the
other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well before
the Coca Cola’s mineral water brand.
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each
other. When the coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using the
punch line “ Nothing official about it”.
Market leader
Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also in marketing they
enjoy beverage of world-class marketing is what makes Coca-Cola the world leader in creative communication.
Market follower
Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from each
other by changing the style of the automobile. Adapters can soon become leaders as well because they can adapt,
learn and make a better product than the higher competition.
Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution to India
but was soon imitated by Videocon, Airtel, Reliance and others.
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other products in the
market which are counterfeited.
Punyakrit Ranawat
Roll No. 103
PG-II
Tata Chemicals in the year 2009 launched a product called Tata Swach. Tata Swach is a water purifier
which was designed as a low cost purifier for the Indian low-income groups. This segment of people lack
access to safe drinking water. Also, this segment is widely spread across the country in places where
electricity in homes is often a dream. This water purifier was unique in its functionality and worked
without electricity. It falls under the category of non-electric water purifiers. It quickly became a winning
product for the company and has recently also be ranked as the #1 product globally across various water
purifier categories.
The innovative technology, simplicity of usage and the value for money that Tata Swach offers has been
well appreciated across the globe. Tata Swach has been bestowed with internationally coveted awards.
The company offers a lot of different products in this range now such as Tata Swach Cristella Plus,
Cristella Advance, Desire +, Smart, Smart+, Insta Sip and Silver Boost which can give a life time ranging
from 3000 litres to 6000 litres of water purification.
As far as the difference between the customer and the consumer is to be understood, the person who pays
for such a product is simply the ‘Customer’ and the person who utilizes the benefits of the product, is the
‘Consumer’.
A mother who purchases Tata Swach for her family is the ‘Customer’, of the product and the company. All
the people who use the water from Tata Swach are the ‘Consumers’ of the product.
New product development
The 7 stages of NPD are Idea Generation, Idea Screening, Concept Testing & Development, Business
Analysis, Product Development, Market Testing and Commercialization. NPD is the total process that
takes a service or a product from conception to the market. The below example explores the story of
‘Guesture’, a banglore based company that provides co-living spaces in the city to solve housing issues
amongst the millennials.
Guesture believes that co-living is the answer to modern day challenges of urban living faced by the youth.
It is a way of living in thoughtfully designed spaces meant for collaboration, community building,
sustainability and a holistic approach to a good life.
Guesture provides co-living spaces with top tier amenities like high-speed Wi-Fi, swimming pool, sports
arena, co-working spaces, event spaces, laundry and cleaning services, meal services, shuttle services and
more. Sign up is hassle free and quick. It is a plug and play approach to living in a city. You don’t need to
bring anything other than your suitcase.
Headquartered in Bangalore, the company because of its unique offering has been growing very quickly.
Apart from the above mentioned amenities, it offers peace of mind for the parents of women by proving
women with separate blocks to stay in (women’s only blocks). It also has the option of offering single
bedrooms, double bedrooms and triple bedrooms for its customers. The pricing is also very economical.
For a triple sharing room, a person would end up paying ₹8,500/- and for solo accommodation a person
will end up paying ₹19,500/-.
Guesture is currently present in 2 locations in the electronic city region of Bangalore, India. The reason for
including this company in NPD is not only to talk about a service (hence not getting into a tunnel vision
w.r.t ‘Product’ in NPD) and also to acknowledge a new concept being tested out in India.
Pricing Strategies
Pricing is the ‘Shock Absorbing’ component of a product or service in question. The reason to start about
this term in a different manner than usual is because it is not easy to get pricing right, and if you don’t then
you will have to take some hits for your product.
Understanding ‘Geographic Pricing’ by the Netflix example: Currently Netflix charges $8.99 for the Basic
plan (one-user non-HD) and charges $ 15.99 for the (four-users 4K plan). If the above numbers are
converted into INR as on 25th December 2019, then the value will range from 640.25 to 1138.78 for the
respective plans. Netflix in UK has a different price than the US market. It charges £8.99 for the basic plan
and charges £11.99 for the premium plan. Again if the maths is to be done then the figures in INR will
range between 831.03 to 1108.35 for the above plans. But none of these rates are the ones that are actually
applicable in the Indian market. The standard plan for Netflix starts at ₹499 then is followed by ₹649 and
then finally a plan of ₹799. It can be understood from these rates that Geographic pricing by looking at the
end customers is in place here. Not only this, in July 2019 the company realised that the Indian market
needs heavier penetration and it will not happen by just a basic plan, because even a basic plan was priced
quite highly for an average consumer of the country. So, to increase the rural as well as urban penetration
in the country, the company for the first time ever launched a mobile plan, under which the account can
only be accessed via mobile phones. To top it up the lucrative pricing for this was done at mere ₹199 which
heavily attracted more people to switch to Netflix and allowed deeper penetration for the company in the
Indian market. Owing to the success of this plan, the company has planned to launch similar priced plans in
markets which are somewhat similar to the Indian market, such as South Africa, Malaysia, Philippines.
This is how geographic pricing can be understood. It is the practice of modifying a basic list price on the
basis of the geographical position of the buyer.
Other Pricing strategies with Examples:
1. Marketing Penetration: The price is set low in order to increase sales and market share. Ex: Samsung
Prime Series
2. Marketing Skimming: The price is set high and is gradually lowered as the product moves through the
product life cycle. Ex: OnePlus 7T Pro
3. Psychological Pricing: The price is set just below a whole number in order to make the product and price
more attractive.
4. Premium Pricing: The firm will set a high price. The price set will reflect the premium quality of the
product. Ex: Gillette Mach 3 Blades
5. Bundle Pricing: Products are bundled together and a slightly cheaper price is charged for buying the
bundled item. Example: Amazon Prime (Prime Music, Delivery, Video for ₹999)
10. Competitive Pricing: A firm looks at their competitors and decides to charge a premium price, an
economy price or a mid-range price for their products, compared to their competitors. Ex: Pepsi and Coca
Cola
Distribution
Zero Tier Model has no intermediary and links manufacturer to customer directly, 1 Tier model has retailer
between the customer and manufacturer, 2 tier has wholesaler, 3 tier has jobber as well.
· Mass distribution: Intensive distribution – Parle G
· Selective Distribution: Woodland, Kaya Skincare (restricts the number of outlets handling a
product)
· Exclusive Distribution: Producers select only a few intermediaries. Example – OnePlus
The Hindustan Unilever distribution story: The company operations spread across 2000+ suppliers and
associates, which enable Unilever to sell 4 million tonnes of products in a year. The distribution network
has evolved over the years by different Phase plans and operations in various parts of the country. Today its
distribution network has 5000 redistribution stockists (RS) covering 6.3 million retail outlets in urban and
rural India. This amounts to a distribution reach of more than 250 million people in urban as well as 250
million people in rural parts of the country.
The first phase of distribution alignment for Unilever came before 1940 in India. At the time they had 30%
large retailers amongst the 5000 RS that they had along with 40 C&F agents. Mostly the distribution part
worked by large order procurement from these retailers and bulk supply to them.
Phase 2, which started in 1940s was the one where wholesalers in each market were tagged by the company
as Registered wholesalers for Unilever and thus creation of Stock points for all company products were
made in the market. A beginning was made in the direction of covering large customers from a single stock
point.
Phase 3, brought with itself the need to penetrate the rural markets of the country and maximum onus was
put on RS. RS provided distribution units to the company salesman and RS financed the stock and provided
warehousing and facilities for the company. RS took demand stimulations activities on behalf of the
company as well. RS provided customer service and thus this phase ensured transhipment, bulk breaking,
minimisation of stock outs happen at RS level itself. Under this phase VAN models were also used to reach
remote villages in India and the reach increased by 25% for the company.
The next phase was launched in 1984. This phase onwards the company pushed extremely for the rural
penetration to increase quickly by means of ‘Operation Harvest’, ‘Project Streamline’, ‘Project Shakti’ and
‘Project Bharat’. Villages with populations lesser than 2000 people were also identified and targeted by the
company, market potential value was explored over the long term and by 1999 the company had reached
13 million households successfully. 2,35,000 villages were now being covered by HUL. By early 2003 the
reach of the company had spread to a whopping 3,50,000 villages across the country.
In terms of the distribution chain, the sub-stockists of the company are the ones who are in direct touch
with the customer across villages and cities in the country. These sub-stockists are supported by rural
distributors (who look after multiple sub-stockists) and these distributors are supported by the wholesalers
of the company, who in-turn are in constant touch with Unilever. C&FAs act as buffer points in the chain.
Promotion & Insights
The term promotion in marketing refers to any type of marketing communication used to perform or
persuade the customer or the target audiences of the relative merits of the product or service or brand or
issue with the aim of increasing the awareness, creating interest, generate sales and create brand loyalty.
Rajasthan Tourism — “Jaane kya dikh jaaye”
Rajasthan is a beautiful place. The state in itself has a strong product right there which is waiting to be
marketed in the right fashion. There certainly was a gap with the way we see Rajasthan compared to the
foreigners who came to visit. While Rajasthan is ranked no. 5 among all Indian states in the number of
foreign visits it is ranked at 10th place when it comes to domestic tourist visits. (2014 data). It was after 25
years that the state returned to tourism marketing and earmarked 100 crore budget for Rajasthan Tourism.
The below campaign strikes the right chord with a potential tourist to discover new experiences in a state
which has a lot to offer. The campaign which was launched by the Rajasthan tourism department urges to
discover Rajasthan and see it through your eyes to find something new and absolutely interesting. See it for
yourself rather than us pointing out what is so great about it. It does this by telling stories of different
protagonists, some turn out to be funny while others purely magical. The camel, sand animated logo, folk
music in the background are all elements that make the state of Rajasthan unique and which are also
integrated well in the creatives of the promotion campaign to develop an obvious category and product
association.
For the purpose of this promotional campaign to be a success, the Rajasthan tourism department started
garnering as many insights that it could from the people of all states. Be it Jaipur (the pink city), Udaipur
(the city of lakes), Jodhpur (the blue city) or other cities like Ajmer, Bikaner and more amongst others.
This led the department to make a new discovery that people all carry various types of experiences from
their visit in the state of Rajasthan. From heritage hotels to tube wells everything can be found here. From
lakes to desserts, from warriors’ kingdoms to haunted places, each place has something different for the
traveller to see, enjoy and cherish for a lifetime.
And the department captured this very sentiment by the means of various advertisements and related
campaigns that it did. From ‘colourful Rajasthan’, to ‘Jane Kya Dikh Jaye’, to ‘Meerasthan’, to
‘Aryasthan’, to ‘Janesthan’, it got all the elements right and helped put Rajasthan back on tourism map for
Indians as well as foreigners and this helped boost revenue for the tourism department of Rajasthan.
Market segmentation is the research that determines how your organization divides its customers or cohort
into smaller groups based on characteristics such as, age, income, personality traits or behavior. These
segments can later be used to optimize products and advertising to different customers.
Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a
specific group of customers within that audience. It defines a segment of customers based on their unique
characteristics and focuses solely on serving them.
Positioning refers to the place that a brand occupies in the minds of the customers and how it is
distinguished from the products of the competitors. In order to position products or brands, companies may
emphasize the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try
to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.)
through the marketing mix. Once a brand has achieved a strong position, it can become difficult to
reposition it.
Differentiation in marketing means creating specialized products that gain competitive advantage with a
particular segment of the market. Companies can choose from two different strategies: differentiation, and
differentiation focus. The former adds specialized aspects with a broad appeal to its products or services,
and the latter develops a product that appeals to a niche market. In either case, differentiation makes a
product or service more desirable to the target market.
STPD for Hyatt. It is a global hospitality company with widely recognized, industry leading brands. It
operates across 7000 rooms in 29 hotels in 18 destinations. The company owns 8 brands across various
target segments. The brands include Park Hyatt, Andaz, Grand Hyatt, Hyatt Hotels, Hyatt Regency, Hyatt
Place, Hyatt House and Hyatt Residences. Below mentioned are the STPD for Hyatt Hotels and Hyatt
Regency.
Hyatt hotels are upscale, full service hotels located across Ahmedabad, Amristsar, Bangalore, Hyderabad,
Pune, Raipur. The target segment for them are primarily guests on business trips. And for them to be
provided with a place to relax and work well. The next target segment for them are leisure travellers
irrespective of their ages. The way they position the hotel is as upscale business hotel with an intimate,
tranquil and serene ambience. The differentiation for Hyatt hotels arises by easy access to airports and
business hubs in the city. Also the hotels are placed close the historical landmarks across above mentioned
cities.
Hyatt Regency on the other hand is an airport hotel and a business hotel at the same time. It is located
across Chennai, Mumbai, Delhi, Gurgaon, Kolkata, Pune and Ludhiana. The target segment for these hotels
are convention goers, business travellers and leisure seekers. Hyatt Regency positions itself as a one stop
destination for business travellers and executives in-transit who can avail and enjoy the quick and efficient
service of the hotel staff with sought after locations for any and all types of events. The differentiation for
these hotels arises out of the fact that they are conveniently located in urban and suburban locations of
major cities with easy access to the airport with great provisions of luxury for the business travellers.
BCG Matrix
BCG matrix: (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand
portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market
growth (vertical axis) axis.
Growth-share matrix: is a business tool, which uses relative market share and industry growth rate factors
to evaluate the potential of business brand portfolio and suggest further investment strategies.
BCG Matrix for Coca Cola India
Question Marks: Fanta and Sprite
Stars: Thumbs Up, Maaza, Kinley
Cash Cows: Coca Cola
Dogs: Diet Coke, Kinley Soda
Coco cola has built its brand internationally since 1886 and in India it retuned in the year 1993. Diet coke
operates in a niche setting and is not available as easily as Coke, it operates in a category with low market
share and low market growth, although the trend for diet and sugar-free drinks has picked up in the past 5
years in the country, it still needs more exploration. Coco Cola is the cash cow for the company as the
goodwill acquired by the brand over so many years has made it sell itself now. Maaza operates in a space
wherein it requires lots of money to drive its sales and requires heavy investment to procure the best of the
raw ingredients for its manufacturing, so does Frooti, Slice or any other brand for that matter to drive the
mango drink concept in India. It also competes with counterparts who are healthier that Coke but are often
perceived to be at par with the mango drink. Thus it eats a lot of cash for the firm. Fanta and Sprite have
slowly divested the money from their quadrants as well, because sales for these drinks has naturally been
levelled for a long time now, with very minute fluctuations, that to only because of short-term campaigns.
Ansoff Matrix
The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze and
plan their strategies for growth. The matrix shows four strategies that can be used to help a firm grow and
also analyzes the risk associated with each strategy. The four strategies of the Ansoff Matrix are:
· Market Penetration: It focuses on increasing sales of existing products to an existing market.
· Product Development: It focuses on introducing new products to an existing market.
· Market Development: Its strategy focuses on entering a new market using existing products.
· Diversification: It focuses on entering a new market with the introduction of new products.
Royal Enfield (Eicher Motors)
Market Penetration: pushing for classic 350, 500, thunderbird 350, 500 in the existing market of India. The
company commands 6% market share in two wheeler segment of India.
Product Development: focus on newer designs, chassis changes, colour modifications, custom finish
options, ABS additions to give more buying options to the customers, along with an entire range of
accessories which includes jackets, gloves, helmets, etc.
Market Development: the exports to US, UK, Egypt, Philippines, were first strengthened by means of
Bullet model and Classic model and then other models were slowly rolled out on demand basis in
international markets.
Diversification: by introducing more motorcycles in various segments such as Thunderbird 350,

Thunderbird 500, Classic 350, Classic 500, Himalayan, Continental GT 535, Continental GT 650,
Interceptor 650 they have diversified in different motorcycle categories.
Porter’s 5 force
Porter's Five Forces is a model that identifies and analyses five competitive forces that shape every
industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently
used to identify an industry's structure to determine corporate strategy.
An analysis of the Indian Passenger Vehicle Market
Threat of New Entrant: Medium: it is difficult for any company to enter the Indian PV market as it requires
economies of scale, lots of capital as entry and exit costs are high, needs to do a lot of work on creating the
brand identity, product differentiation and has to bear the customer switching costs which are high in this
market. Other factors that an entrant has to keep in mind before entering the automotive space in India is
that the access to raw material, technology and distribution channels in a developing country like India is
not easy to establish and the government norms, policies quickly affect this sector.
Bargaining power of suppliers: High: the PV market in India is considered to have highly capital intensive
requirements and labour requirements in order to keep producing constantly. Auto parts make up half of the
story for your vehicles and aren’t easy to procure in this market, long and healthy supplier relationships are
valued in this industry. Lead times, overall quality of products, accessories all are affected by this
relationship.
Bargaining power of Buyers: Medium: the power in the hands of the customer today is much more
significant. Back in 1991, only 3 cars were manufactured and stored in India with months of waiting time
for delivery, today on the other hand, customers can easily switch even after having booked the car, which
is a big cost to the automotive manufacturers.
Threat from Substitutes: Low: it will take India another decade to adopt the EV cars that are slowly to be
seen on Indian roads. MG ZS is all set to be launched in the next year and is being marketed as India’s first
EV. Government plans with FAME are also helping this space, but still the threat is low. The other
alternatives like public transport infrastructure do always substitute the need to own a vehicle in some cities
but not the same can be said for the entire country.
Intensity of Rivalry: High: it is an oligopoly; this helps reduce price based competition, but competition on
differentiation, product features, after-sales service, etc., is always a factor that creates rivalry amongst
competitors.
Product life cycle
The product life cycle is broken into four stages: introduction, growth, maturity, and decline. This concept
is used by management and by marketing professionals as a factor in deciding when it is appropriate to
increase advertising, reduce prices, expand to new markets, or redesign packaging.
Kodak Story:
Stage 1: Start up in the late 80’s the Kodak film roll was unique and niche in the market. Almost everybody
owned their camera together with a film roll. At the time, it cost them a lot to start up with their new
product. They made advertisements, research and development to implement the trust and interest among
the customers. The capital they invested was very high compared to the revenue or profit they gain. But the
product life cycle kept increasing.
Stage 2: Growth in this stage: Kodak film grew rapidly in term of sales and profits. At this stage the
product was trusted by everyone and used by everybody. Almost everyone had started using the film roll.
Many people were relying on Kodak film roll for any vacations and events that they wanted to take pictures
of. The strong growth of Kodak film made them invest more money in promotional activities to maximize
their growth stage.
Stage 3: Maturity: The camera and rolls didn’t really go through a large stage of maturity though, as soon
as new technology came in, which at the time was Digital cameras, the sales declined sharply and instead
of direct competition for Kodak, competitors had now adopted a totally different, yet same product, which
killed Kodak’s offerings sooner than they could say…Click!
Stage 4: Decline: with the on-set of digital cameras by Sony, Fujifilm and other companies, the market for
Kodak was quickly eaten away and they never gained it back again.
Consumer behaviour
The steps in consumer buying behaviour are as follows:
5. Purchase (Buyer)
The mix of physiological arousal, emotional arousal, cognitive arousal and situational arousal together lead
to a purchase decision. Not all of them have to be present, even one is enough to influence someone to
make a purchase under a certain condition.
Example: Unfulfilled need for a student who is staying far from her home could be to visit her home. That
is her stage 1. Post this she looks at stage 2 wherein she searched for ways to visit her hometown. Since it
is the time of Christmas she looks at all the possible options such as buses, cars, flights, train. Then she
moves to stage 3, wherein she evaluates the worth of each of the listed alternatives. She then moves to
stage 4 wherein she takes a purchase decision and this can be instantly coupled with stage 5, which is
Purchase itself. Post this the stage of consumption happens. Often in case of services the consumption of
services and the purchase evaluation both happen at the same time. In our above example, the lady had a
good flight and she had a positive experience from the journey, this can also be reflected by her in feedback
or review of the flight journey.
Product line extensions
A product line extension is the use of an established product brand name for a new item in the same
product category. It is of three types:
1. Upmarket Stretch
2. Down Market Stretch

3. Two-way Stretch
Unilever (Tea Category- Product Line Depth)
Brooke Bond Red Label, Lipton, Lipton Ice Tea, Lipton Green Tea, Brooke Bond Taaza, Taj Mahal all are
examples of product line depth under the product line of tea for Unilever.
Similarly, Kissan, Knorr, Anapurna, Modern all fall under the product line of Food for Unilever and are
examples of product line depth.
Brooke Bond and Lipton both are available in varied quantities (SKUs): Both start from 250 gram pouches
and go all the way up to 1 Kg packets, they also have 100 grams packets available.
Market Challenger
1. Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour TV “
Sampoorna” for the rural people and outshine the other coloured TV players who had a less focus on these
areas.
3. Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to
outshine the other.
4. Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very
well before the Coca Cola’s mineral water brand.
5. Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to
harass each other. When the coca-cola was the official partner of the world cup, the Pepsi counter-attacked
it by using the punch line “ Nothing official about it”.
Market Leader
1. Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk shampoos
and gave heavy promotions through price reduction.
2. Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore Indian-
made brand Vim in a competitive dish wash market. It was able to check the attack of competitors through
product innovation, attractive public campaigns, road shows and public relations.
3. Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the market
share of HMT watches in the early 1990s.
4. Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS
decided to expand its coverage to Ceat tyre’s hub in the north and west of India through innovative
campaigns like road rallies, road shows and attractive public campaigns.
5. Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound and
outbound tour operator, flouriest and so on. Such diversification into related areas comes under mobile
defence strategies.
6. Contraction Defence: For example, HUL decided to concentrate on its core business areas, that is,
soaps and detergents, and has emerged as the clear leader in the toilet industry.
Market Nicher
and forum mall, Medium footfall (501-999)- central mall & majestic street, Small footfall (<501)- Hong
Kong bazaar & shangai bazaar
Ferrari
Market Follower
1. Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities
2. Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV
3. Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, than that’s cloning.
4. Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other
Smriti Jha | Roll no. 116
Marketing concepts
Marketing Mix – Typically the 4Ps make up the marketing mix – price, product, promotion and
place.
Consumers and customers
Johnsons Baby – when a mother goes to buy a Johnson product for her baby, mother is the customer, as
she wants the product for her baby and not for herself. But the baby is the final consumer, as ultimately
baby is going to consume the product.
New Product Development (Tata Nano)
Idea Generation:
ü Safe
ü Affordable
ü All- weather transport
ü Safety requirements
ü People’s car (for those who wants to travel from 4 wheelers instead of two wheelers)
Idea Screening – (Before testing the product, to know about the people’s opinion)
ü An auto rickshaw with four wheelers?
ü 4 wheel rural car?
ü A scooter with two extra wheels at the back for extra stability?
Alternatives explored where existing vehicles could be modified
Concept Testing and development- Getting feedback from potential customers.
Business Analysis: Regarding affordability and feasibility, revenue
generation and demand forecasting
Business strategy: Aim at availing the government concessions and
tax exemptions/reductions
Product Development: Get the required patents for the design.
Test Marketing- Pilot testing
Commercialization- Decisions regarding launch

Pricing Strategies:
1) Bundling pricing – Mcd meals, Celebrations, Toothpaste
2) Surge pricing – Urbanclap, uber, ola
3) Cost plus pricing – clothing retailer, small grocery shop (commodity seller)
4) Premium pricing – ipad, designer’s clothes, premium unleaded petrol
5) EDLP pricing – Walmart, big bazar, Reliance retail
6) Geographical pricing – Cocal cola introducing “chota coke” at a price of Rs. 5
7) Economical pricing – Ghadi detergent
8) Penetration Pricing – Reliance Jio (capturing market through data plan starting from Rs. 19 to
9,999)
9) Skimming pricing - Versace
Product Life Cycle – NOKIA 2110
a) Introduction Stage (1995 – 2002)
ü launched in India in 1995
ü Launched very few models due to lesser demand and innovation
ü GSM and CDMA phones
ü Launched first model Nokia 2110 with Nokia tune
ü First model capable of sending and receiving sms
ü Competed with then market leader Motorola
ü Rarely followed any discounting policy
ü Offered a good amount of backend profit to retailers
ü Mobility factor of mobile attracted customers without any scheme
b) Growth Stage (2003 – 2009)
ü
ü Launched phones without external antenna
ü Had better features like games, keyboard, alarm, display, etc
ü Models like Nokia 3310, and 3315 marked beginning of growth stage
ü Launched model like N95 to compete wth Aplle’s iphone
ü Followed price skimming strategy at the early growth stage
ü Launch price of 3310 was approximately 21000
ü As profits increased, prices were slashed to Rs. 5000, in 2003 for popular models like
3310
ü Later it adopted price penetration strategy
ü Postpaid connections were given free with Nokia select models
c) Maturity Stage (2009 – 2011)
ü Launched lot of touch screen models
ü Launched 1st maemo 5 os phone N 900
ü Launched qwerty plus touch model N97
ü Focued on E series phone to compete with blackberry
ü During 2007, 15000 tons packaging material was saved by using small packaging
ü Followed price penetration to sustain growth
ü Launched models ranged from 1000 to 30000
ü Frequently reduced price to compete with micromax, Samsung, LG
ü Scratch cards were given to customers for promotion
ü During festive season, rebook wrist watches, t shirts, sunglasses and sling bags were also
given with select models
d) Decline Stage (2011 – till now)

ü Upgraded its Symbian OS with ‘3’ and ‘Belle’
ü Used Symbian in only low end model
ü Launched 1st window phone Lumia 800
ü Due to cut throat competition with Samsung and Micromax, pricing strategy was penetration only.
ü Reduction in price leads to detoriation in quality
Porter’s Five Forces Model (Nike)
Bargaining power of suppliers: low
The bargaining power of Nike’s suppliers is low. Its products are made globally in 42 countries in 620
factories. While individual suppliers are small in size, they do not have the ability of forward integration
either. This reduces the chances of competition from suppliers. Moreover, the number of suppliers is high
and they are scattered throughout the world. It is why individual suppliers cannot exert any pressure on
Nike. The brand sets standards for its suppliers to comply with. If a supplier does not adhere to the
standards, Nike can easily switch to another. However, in such a case, the supplier would be losing a major
source of revenue. Overall, Nike holds strong control over its suppliers and audits them regularly through
third party auditors for compliance.
“Nike requires its finished goods suppliers to verify they are sourcing materials from vendors that are compliant with
Nike’s Restricted Substances List (RSL) and with the principles and guidelines outlined in Nike’s Code of Conduct.
Nike is also working towards mapping and understanding impacts further up the supply chain, to develop standards
for upstream suppliers of contracted manufacturers. Nike’s Supply Agreements also explicitly require Suppliers to
comply with all local and country-specific labor laws” (Nike Supply chain disclosure).
Thus, the overall bargaining power of Nike suppliers is low.
Bargaining power of buyers: low to moderate

The bargaining power of Nike’s buyers is low to moderate. The number of its competitors is not so small if not very
large. Apart from Adidas and Under Armour, there are other competitors like Puma and Reebok. There are many
other local and international brands also that compete with Nike. The switching costs for customers are low. To some
extent this force is moderated by the quality and marketing of Nike’s products. Nike focuses on performance and
design. It is why it has been able to build good customer loyalty. This reduces the bargaining power of individual
buyers which is low to moderate.
Threat of substitutes: low to moderate
The threat of substitute products is moderate for Nike. It is because a large number of competing brands
make similar or matching products. There are several brands in local and international markets that make
low priced shoes compared to Nike. These brands offer lower priced substitute products for Nike. To some
extent this threat is moderated by the quality and design of Nike products. Overall, the threat from
substitute products is moderate.
Threat of new entrants: Low

The threat of new entrants for Nike can be considered low to moderate. It is because while the investment for starting
the business is not very large, still there are other requirements that are not easy to fulfil. Any new competitor may
have to start at a local or small level initially. Apart from production, there are marketing, distribution and supply
chain management that require investment, skilled workers and time. Building a brand image and equity are also
difficult. These factors moderate the threat from the new entrants. For any new brand, it is not possible to create the
kind of brand image like Nike overnight. It takes time, efforts and capital investment. Nike’s strong position in the
market mitigates the threat to a large extent. Based on these factors the threat from new entrants is low. While
investment for production may be low, developing a notable brand can be time consuming and requires a lot of
capital investment.
Level of competitive rivalry: Strong

The level of competition in the sports industry is strong. Some of the major competitors of Nike are Adidas, Under
Armour and Puma. The industry has grown saturated and the existing players are engaged in tough competition for
deeper market penetration and to snatch away market share from each other. Brands invest a lot in marketing and
other things. The number of top players and direct competitors of Nike is low, however that makes the competition
even intense. Overall, the level of competition in the industry is strong.
BCG Matrix (COCA COLA)
CASH COWS:
Cash cows are the products that have a high market share in a market that has low growth.
Below are few products which have been the cash cow for the company for all these years:
Coke: Coke for years has been a market leader in carbonated soft drink segment and a major cash
generator for the company. Having a presence in 200+ countries, coke has been the no.1 choice for millions
of consumers all these years when it comes to choosing a carbonated soft drink.
STARS:
The products or business units that have a high market share in high growth industry are the stars of
the organization.
Kinley and Dasani: Kinley and Dasani are still bottled water brands owned by Coca-Cola and offered in
different countries in markets. While Kinley is quite a popular bottled water brand in European and Asian
countries, Dasani has a quite a stronghold in US market.
Owing to the growing demand for low calorie and healthy drinks, the bottle watered industry is currently
under an evolution phase.
To cater to different customer segments and their needs, coke is looking out at launching different variants
of bottled water EG: Apart from just simple bottled water, Coke also offers Kinley and Dasani sparkling
water (just to cater to affluent customers).
That’s not it; these also come in different flavours giving the customers a wide range of options to choose
from.
QUESTION MARK:
There are products that formulate a part of the industry that is still in the phase of development and the
organization is trying to create a significant position in the industry.
The small market share obtained by the organization makes the future outlook for the product uncertain;
therefore investing in such domains is seen as a high-risk decision.
The products in this segment can either grow or become stars or cash cows for the company or can turn
into a bad investment.
The beverage industry is at an inflection point and is undergoing a major transformation.
With an aim to cater to the changing needs of consumers to zero calories and no sugar drinks, Coca-Cola
company has launched a number of products/brands to cater the same.
The company is investing a lot of capital to create awareness about these brands. These products/brands are
still in the initial/development phase of the product lifecycle and have a huge potential to grow.
Diet Coke, Smartwater, Honest Tea, Sparkling water, Minute Maid are few brands/products which fall
under the Question Mark quadrant.
Growing healthier lifestyle trends and emerging markets have prompted the brand to invest a large amount
of capital in healthier beverages in order to differentiate itself from competitors and grow brand awareness
and market share.
DOGS:
Dogs are those products that were perceived to have the potential to grow but however failed to create
magic due to the slow market growth.
Failure to deliver the expected results makes the product a source of loss for the organization, propelling
the management to withdraw future investment in the venture. Since the product is not expected to bring in
any significant capital, future investment is seen as wastage of company resources, which could be invested
in a Question mark or Star category instead.
Coke – Declining demand for carbonated soft drinks due to increasing demand for low calorie and healthy
beverages and snacks is what is attributing the diminishing sales of Coke brand.
Coke brand which is currently regarded as a cash cow for the company will eventually fall in quadrant in
the future due to all these factors.
STPD
Ansoff Matrix
Market Penetration: pushing for classic 350, 500, thunderbird
350, 500 in the existing market of India. The company commands 6% market share
in two wheeler segment of India.
Product Development: focus on newer designs, chassis changes,
colour modifications, custom finish options, ABS additions to give more buying
options to the customers, along with an entire range of accessories which
includes jackets, gloves, helmets, etc.
Market Development: the exports to US, UK, Egypt,
Philippines, were first strengthened by means of Bullet model and Classic model
and then other models were slowly rolled out on demand basis in international
markets.
Diversification: by introducing more motorcycles in
various segments such as Thunderbird 350, Thunderbird 500, Classic 350, Classic
500, Himalayan, Continental GT 535, Continental GT 650, Interceptor 650 they
have diversified in different motorcycle categories.
A product line
extension is the use of an
established product brand name for a new item in the same product category. It
is of three types:
1.
Upmarket Stretch
2.
Down Market Stretch
3.
Two-way Stretch
Brooke Bond Red Label, Lipton, Lipton Ice Tea, Lipton Green Tea,
Brooke Bond Taaza, Taj Mahal all are examples of product line depth under the
product line of tea for Unilever.
Similarly, Kissan, Knorr, Anapurna, Modern all fall under the
product line of Food for Unilever and are examples of product line depth.
Brooke Bond and Lipton both are available in varied quantities
(SKUs): Both start from 250 gram pouches and go all the way up to 1 Kg packets,
they also have 100 grams packets available.
STPD: (Indulekha - HUL)
Segmentation
Demographic:
Females, late teens to old age and males
Psychographic:
People suffering from hair loss due to stress and a busy
life.
People who don’t really have the time to take care of their
hair but are afraid of losing it
Behavioral:
Hair oils are typically used before hair wash (2-3 times a
week) among Indian Women.
Hot Oil nourishes better
Geographical:
Urban and Rural
Targeting:
Mainly concentrating on Urban Working woman
Females and Males – 17 to 50 years
Positioning:
They positioned their hair oils as something that does not
require a lot of efforts
Made for the busy lifestyle
Differentiation:
Selfie Bottle
1.
Advertisement: Bande
Ache hai – ICICI Bank
Insight: Jo Zimmedari nibhate hai, jatate
nai. For the men of the society who take up many responsibilities
2. Advertisement : Idea Honey Bunny

Market Nicher
1. End
user specialist: Tennispoint All
tennis needs are provided by the firm
2. Vertical level specialist: Heavy Transport firms moving heavy machinery and
loads. They have knowledge of alerting police, closing of roads, etc
3. Customer size specialist: Bangalore malls like Bangalore central mall,
High footfall (1000 +) – garuda and forum mall, Medium footfall (501-999)-
central mall & majestic street, Small footfall (<501)- Hong Kong bazaar &
shangai bazaar
4. Specific customer specialist: High performance carburettors to specific brand
like BMW, Porche, Ferrari
5. Product /Product line specialist: Amul offers a series of closely related products
such as milk, butter, ghee, yoghurt, ice-cream, chocolates, etc.
Market Leader
Position
Defence: For example, HUL
increased its ad-spend on Clinic Plus and Sun silk shampoos and gave heavy
promotions through price reduction.
Flanking
Defence: An ideal example is how HUL
successfully nourished its first Rs.100 crore Indian-made brand Vim in a
competitive dish wash market. It was able to check the attack of competitors
through product innovation, attractive public campaigns, road shows and public
relations.
Pre-emptive
Defence: For example, Titan
launched more brands and sub-brands to corner the market share of HMT watches
in the early 1990s.
Counter-offensive
Defence: When Ceat tyres attacked
TVS Srichakra in Tamil Nadu markets, TVS decided to expand its coverage to Ceat
tyre’s hub in the north and west of India through innovative campaigns like
road rallies, road shows and attractive public campaigns.
Mobile
Defence: For instance, a
five-star hotel can become a foreign exchange dealer, inbound and outbound tour
operator, flouriest and so on. Such diversification into related areas comes
under mobile defence strategies.
Contraction
Defence: For example, HUL decided
to concentrate on its core business areas, that is, soaps and detergents, and
has emerged as the clear leader in the toilet industry.
Market Challenger
·
Frontal
Attack: Amul adopted this
strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the
Flank
Attack: L.G has successfully made
use of this strategy by introducing the colour TV “ Sampoorna” for the rural
people and outshine the other coloured TV players who had a less focus on these
areas.
Encirclement
Attack: The FMCG industry applies
this attack more aggressively with the intention to outshine the other.
Bypass
Attack: Pepsi adopted this
strategy when it launched its mineral water brand “Aquafina” very well before
Guerrilla
Warfare: The Pepsi and Coca-Cola
follow this strategy aggressively with the intention to harass each other. When
the coca-cola was the official partner of the world cup, the Pepsi
counter-attacked it by using the punch line “ Nothing official about it”

Market Nicher:
End user specialist: Beardo Beard and Hair
growth oil. This is specifically for those men who
want a long beard. Also, another example is Lefty’s San Francisco
is a left-handed retail store
that sells school supplies, kitchen goods, and gardening tools,
and many more things for the
lefties.
Geographic specialist: Bombay Shaving company is
an example of geographic specialist. It’s
production and target audience was initially strictly restricted
to the city of Mumbai.
Customer size specialist: Tree of Life(Hallmark) specializes in
only jewish greeting card and
gifts and celebrates jewish faith.
Product specialist: UNTUCKit brand has
created a new line of products for people who do
not like tucked shirts. It gives you a feel of a tucked shirt
without actually tucking it.
Specific customer specialist: Weber carburettor is a company which
provides carburettors
to only high end cars like Porsche, Ferrari, BMW.
Market follower
Adapter: Cars like Maruti 800, Alto, Zen, brio,
etc are all adapters and they adapt the best
qualities from each other by changing the style of the automobile.

Adapters can soon
become leaders as well because they can adapt, learn and make a
better product than the
higher competition.
Imitation: The imitation of Tata sky, where Tata sky
is the market leader and brought digital
TV revolution to India but was soon imitated by Videocon, Airtel,
Reliance and others.
Cloning: if you get watches made from Rado, or
bags of Gucci, as GUCCA, than that’s
cloning.
Counterfeiter: Similarly, you can find shoes from Reebok
and Adidas as well as numerous
Buying Process:
Buying problem arises only when there is unmet need or problem is recognized. Need or problem impels
an individual to act or to buy the product. Buyer senses a difference between his actual state (physical and
mental) and a desired state. The need can be triggered by internal or external stimuli. Internal stimuli
include basic or normal needs – hunger, thirst, sex, or comfort; while external stimuli include external
forces, for instance, when an individual watch a new brand car, he desires to buy it. Marketer must identify
the circumstances that trigger a particular need. He can collect information from a number of consumers
information:
sources.
Mass media (radio, TV, newspapers, magazines, cinema, etc.), consumer- rating agencies, etc., are main
public sources.
sources depends upon personal characteristics, types of products, and capacity and reliability of sources.
Each information source performs different functions in influencing buying decision. By gathering
information from relevant sources, the consumer can learn about different products and brands available in
the market.
Note that consumer will not collect detail information on all the brands available in the market. He
scrutinizes all the brands in sequence, like total (brands) set to awareness set to affordable set, and to
choice set. Consumer collects information only on limited brands, say, choice set. Marketer must try to get
his brand into the prospects’ awareness set and choice set. Moreover, the company should identify sources
and their relative importance. Company must ask the consumers regarding types of sources they exercise.
They can elicit valuable information about sources they normally use and their relative value. On that basis,
effective communication can be prepared for the target market.
attractive. Evaluation calls for evaluating various alternatives with certain choice criteria. Following
criteria are considered while evaluating alternatives
vi. Product-related services offered by the brands, such as after-sales services, warrantee, and free
installation

Different criteria are used for different products. For example, if a person wants to purchase a motorbike
out of Enfield Bullet 350; TVS Victor, TVS Centra, Suzuki Ferro; Hero Honda Spender, Ambition, and
CBZ; Kawasaki Bajaj Boxer, Pulsar and Caliber; LML Freedom, etc., he will consider following criteria:
i. Price
vi. Speed per hour
x. Safety
xi. Resale value
The brand that meets most of the above conditions reasonably is more likely to be preferred. Marketer
should highlight superior features of his brand. Some companies also advertise comparative table to help
consumers evaluate various brands. For example, Yamaha, Maruti, and Hyundai provide comparative table
in newspapers to show how the bike/car is superior to other brands.
This is the stage when the consumer prefers one, the most promising band, out of several brands. The
former stage helps consumers evaluate various brands in the choice set. The brand that offers maximum
benefits or satisfaction is preferred. Simply, the most attractive brand, that can offer more benefits in
relation to price paid, is selected by comparing one brand with others. Comparison shows
superiority/inferiority of the brands.
modify, or postpone a purchase decision is influenced by these factors. The first factor is attitudes of
others. The impact of other persons’ attitudes depends on degree of their negative attitudes toward the
consumer’s preferred brand, and consumer’s degree of compliance with other persons’ wishes. The second
factor is unanticipated situational factors. Purchase intension may change due to certain unanticipated
situational factors like price hike, loss of job, family income, major medical expenses, non-availability of
the preferred brand, or such similar factors. The third and the last factor is consumer’s perceived risk.
Degree of risk depends on price, attribute uncertainty, entry of a new superior product, and his self-
confidence. Sub-decisions in Purchase Decision:
i. Brand Decision:
satisfaction/dissatisfaction. Marketer must monitor the post-purchase experience of the buyers that
includes:
i. Initiator
ii. Influencer:

iii. Decider:
where to buy
iv. Buyer:
v. User:
A company needs to identify these roles because they have implications for designing the product,
determining messages, arid allocating the promotional budget.
Smriti Jha | Roll no. 116
Marketing concepts
Marketing Mix – Typically the 4Ps make up the marketing mix – price, product, promotion and place.
Consumers and customers
Johnsons Baby – when a mother goes to buy a Johnson product for her baby, mother is the customer, as she
wants the product for her baby and not for herself. But the baby is the final consumer, as ultimately the
baby is going to consume the product.
New Product Development (Tata Nano)
Idea Generation:
Safe
Affordable
All- weather transport
Safety requirements
People’s car (for those who wants to travel from 4 wheelers instead of two wheelers)
Idea Screening – (Before testing the product, to know about the people’s opinion)
An auto rickshaw with four wheelers?
4 wheel rural car?
A scooter with two extra wheels at the back for extra stability?
Alternatives explored where existing vehicles could be modified
Concept Testing and development- Getting feedback from potential customers.
Business Analysis: Regarding affordability and feasibility, revenue generation and demand forecasting
Business strategy: Aim at availing the government concessions and tax exemptions/reductions
Test Marketing- Pilot testing
Commercialization- Decisions regarding launch
Pricing Strategies:
1) Bundling pricing – Mcd meals, Celebrations, Toothpaste
2) Surge pricing – Urbanclap, uber, ola
3) Cost plus pricing – clothing retailer, small grocery shop (commodity seller)
4) Premium pricing – ipad, designer’s clothes, premium unleaded petrol
5) EDLP pricing – Walmart, big bazar, Reliance retail
6) Geographical pricing – Coca cola introducing “chota coke” at a price of Rs. 5
7) Economical pricing – Ghadi detergent
8) Penetration Pricing – Reliance Jio (capturing market through data plan starting from Rs. 19 to
9,999)
9) Skimming pricing - Versace
Product Life Cycle – NOKIA 2110
a) Introduction Stage (1995 – 2002)
launched in India in 1995
Launched very few models due to lesser demand and innovation
GSM and CDMA phones
Launched first model Nokia 2110 with Nokia tune
First model capable of sending and receiving sms
Competed with then market leader Motorola
Rarely followed any discounting policy
Offered a good amount of backend profit to retailers
Mobility factor of mobile attracted customers without any scheme
b) Growth Stage (2003 – 2009)

Launched phones without external antenna
Had better features like games, keyboard, alarm, display, etc
Models like Nokia 3310, and 3315 marked beginning of growth stage
Launched model like N95 to compete with iApple’s iphone
Followed price skimming strategy at the early growth stage
Launch price of 3310 was approximately 21000
As profits increased, prices were slashed to Rs. 5000, in 2003 for popular models like 3310
Later it adopted price penetration strategy
Postpaid connections were given free with Nokia select models
c) Maturity Stage (2009 – 2011)

Launched lot of touch screen models
Launched 1st maemo 5 os phone N 900
Launched qwerty plus touch model N97
Focued on E series phone to compete with blackberry
During 2007, 15000 tons packaging material was saved by using small packaging
Followed price penetration to sustain growth
Launched models ranged from 1000 to 30000
Frequently reduced price to compete with micromax, Samsung, LG
Scratch cards were given to customers for promotion
During festive season, rebook wrist watches, t shirts, sunglasses and sling bags were also given with
select models
d) Decline Stage (2011 – till now)

Upgraded its Symbian OS with ‘3’ and ‘Belle’
Used Symbian in only low end model
Launched 1st window phone Lumia 800
Due to cut throat competition with Samsung and Micromax, pricing strategy was penetration only.
Reduction in price leads to detoriation in quality
Porter’s Five Forces Model (Nike)
The bargaining power of Nike’s suppliers is low. Its products are made globally in 42 countries in 620
factories. While individual suppliers are small in size, they do not have the ability of forward integration
either. This reduces the chances of competition from suppliers. Moreover, the number of suppliers is high
and they are scattered throughout the world. It is why individual suppliers cannot exert any pressure on
Nike. The brand sets standards for its suppliers to comply with. If a supplier does not adhere to the
standards, Nike can easily switch to another. However, in such a case, the supplier would be losing a major
source of revenue. Overall, Nike holds strong control over its suppliers and audits them regularly through
third party auditors for compliance.
“Nike requires its finished goods suppliers to verify they are sourcing materials from vendors that are
compliant with Nike’s Restricted Substances List (RSL) and with the principles and guidelines outlined in
Nike’s Code of Conduct. Nike is also working towards mapping and understanding impacts further up the
supply chain, to develop standards for upstream suppliers of contracted manufacturers. Nike’s Supply
Agreements also explicitly require Suppliers to comply with all local and country-specific labor laws”
(Nike Supply chain disclosure).
Thus, the overall bargaining power of Nike suppliers is low.
Bargaining power of buyers: low to moderate
The bargaining power of Nike’s buyers is low to moderate. The number of its competitors is not so small if
not very large. Apart from Adidas and Under Armour, there are other competitors like Puma and Reebok.
There are many other local and international brands also that compete with Nike. The switching costs for
customers are low. To some extent this force is moderated by the quality and marketing of Nike’s products.
Nike focuses on performance and design. It is why it has been able to build good customer loyalty. This
reduces the bargaining power of individual buyers which is low to moderate.
Threat of substitutes: low to moderate
The threat of substitute products is moderate for Nike. It is because a large number of competing brands
make similar or matching products. There are several brands in local and international markets that make
low priced shoes compared to Nike. These brands offer lower priced substitute products for Nike. To some
extent this threat is moderated by the quality and design of Nike products. Overall, the threat from
substitute products is moderate.
Threat of new entrants: Low
The threat of new entrants for Nike can be considered low to moderate. It is because while the investment
for starting the business is not very large, still there are other requirements that are not easy to fulfil. Any
new competitor may have to start at a local or small level initially. Apart from production, there are
marketing, distribution and supply chain management that require investment, skilled workers and time.
Building a brand image and equity are also difficult. These factors moderate the threat from the new
entrants. For any new brand, it is not possible to create the kind of brand image like Nike overnight. It takes
time, efforts and capital investment. Nike’s strong position in the market mitigates the threat to a large
extent. Based on these factors the threat from new entrants is low. While investment for production may be
low, developing a notable brand can be time consuming and requires a lot of capital investment.
Level of competitive rivalry: Strong
The level of competition in the sports industry is strong. Some of the major competitors of Nike are
Adidas, Under Armour and Puma. The industry has grown saturated and the existing players are engaged in
tough competition for deeper market penetration and to snatch away market share from each other. Brands
invest a lot in marketing and other things. The number of top players and direct competitors of Nike is low,
however that makes the competition even intense. Overall, the level of competition in the industry is
strong.
BCG Matrix (COCA COLA)

CASH COWS:
Cash cows are the products that have a high market share in a market that has low growth.
Below are few products which have been the cash cow for the company for all these years:
Coke: Coke for years has been a market leader in carbonated soft drink segment and a major cash generator
for the company. Having a presence in 200+ countries, coke has been the no.1 choice for millions of
consumers all these years when it comes to choosing a carbonated soft drink.
STARS:
The products or business units that have a high market share in high growth industry are the stars of the
organization.
Kinley and Dasani: Kinley and Dasani are still bottled water brands owned by Coca-Cola and offered in
different countries in markets. While Kinley is quite a popular bottled water brand in European and Asian
countries, Dasani has a quite a stronghold in US market.
Owing to the growing demand for low calorie and healthy drinks, the bottle watered industry is currently
under an evolution phase.
To cater to different customer segments and their needs, coke is looking out at launching different variants
of bottled water EG: Apart from just simple bottled water, Coke also offers Kinley and Dasani sparkling
water (just to cater to affluent customers).
That’s not it; these also come in different flavours giving the customers a wide range of options to choose
from.
QUESTION MARK:
There are products that formulate a part of the industry that is still in the phase of development and the
organization is trying to create a significant position in the industry.
The small market share obtained by the organization makes the future outlook for the product uncertain;
therefore investing in such domains is seen as a high-risk decision.
The products in this segment can either grow or become stars or cash cows for the company or can turn
into a bad investment.
The beverage industry is at an inflection point and is undergoing a major transformation.
With an aim to cater to the changing needs of consumers to zero calories and no sugar drinks, Coca-Cola
company has launched a number of products/brands to cater the same.
The company is investing a lot of capital to create awareness about these brands. These products/brands are
still in the initial/development phase of the product lifecycle and have a huge potential to grow.
Diet Coke, Smartwater, Honest Tea, Sparkling water, Minute Maid are few brands/products which fall
under the Question Mark quadrant.
Growing healthier lifestyle trends and emerging markets have prompted the brand to invest a large amount
of capital in healthier beverages in order to differentiate itself from competitors and grow brand awareness
and market share.
DOGS:
Dogs are those products that were perceived to have the potential to grow but however failed to create
magic due to the slow market growth.
Failure to deliver the expected results makes the product a source of loss for the organization, propelling
the management to withdraw future investment in the venture. Since the product is not expected to bring in
any significant capital, future investment is seen as wastage of company resources, which could be invested
in a Question mark or Star category instead.
Coke – Declining demand for carbonated soft drinks due to increasing demand for low calorie and healthy
beverages and snacks is what is attributing the diminishing sales of Coke brand.
Coke brand which is currently regarded as a cash cow for the company will eventually fall in quadrant in
the future due to all these factors.
STPD
Ansoff Matrix
Market Penetration: pushing for classic 350, 500, thunderbird 350, 500 in the existing market of India. The
company commands 6% market share in two wheeler segment of India.
1. Upmarket Stretch
3. Two-way Stretch
Segmentation
Demographic:
Psychographic:
People suffering from hair loss due to stress and a busy life.
People who don’t really have the time to take care of their hair but are afraid of losing it
Behavioral:
Hair oils are typically used before hair wash (2-3 times a week) among Indian Women.
Geographical:
Urban and Rural
Targeting:
Positioning:
They positioned their hair oils as something that does not require a lot of efforts
Differentiation:
Selfie Bottle
1. Advertisement: Bande Ache hai – ICICI Bank
Insight: Jo Zimmedari nibhate hai, jatate nai. For the men of the society who take up many responsibilities
Market Nicher
3. Customer size specialist: Bangalore malls like Bangalore central mall, High footfall (1000 +) –
garuda and forum mall, Medium footfall (501-999)- central mall & majestic street, Small footfall (<501)-
Hong Kong bazaar & shangai bazaar
Ferrari
Market Leader
· Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk shampoos
Indian-made brand Vim in a competitive dish wash market. It was able to check the attack of competitors
through product innovation, attractive public campaigns, road shows and public relations.
· Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the market
· Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS
· Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound and
defence strategies.
· Contraction Defence: For example, HUL decided to concentrate on its core business areas, that is,
Market Challenger
· Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a
· Flank Attack: L.G has successfully made use of this strategy by introducing the colour TV “
areas.
· Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to
outshine the other.
· Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very
· Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to
it by using the punch line “ Nothing official about it”
Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and
Product specialist: UNTUCKit brand has created a new line of products for people who do
Specific customer specialist: Weber carburettor is a company which provides carburettors
Market follower
higher competition.
cloning.
Buying Process:
an individual to act or to buy the product. Buyer senses a difference between his actual state (physical and
mental) and a desired state. The need can be triggered by internal or external stimuli. Internal stimuli
include basic or normal needs – hunger, thirst, sex, or comfort; while external stimuli include external
forces, for instance, when an individual watch a new brand car, he desires to buy it. Marketer must identify
the circumstances that trigger a particular need. He can collect information from a number of consumers
information:
sources.
Mass media (radio, TV, newspapers, magazines, cinema, etc.), consumer- rating agencies, etc., are main
public sources.
sources depends upon personal characteristics, types of products, and capacity and reliability of sources.
Each information source performs different functions in influencing buying decision. By gathering
information from relevant sources, the consumer can learn about different products and brands available in
the market.
Note that consumer will not collect detail information on all the brands available in the market. He
scrutinizes all the brands in sequence, like total (brands) set to awareness set to affordable set, and to
choice set. Consumer collects information only on limited brands, say, choice set. Marketer must try to get
his brand into the prospects’ awareness set and choice set. Moreover, the company should identify sources
and their relative importance. Company must ask the consumers regarding types of sources they exercise.
They can elicit valuable information about sources they normally use and their relative value. On that basis,
attractive. Evaluation calls for evaluating various alternatives with certain choice criteria. Following
criteria are considered while evaluating alternatives

vi. Product-related services offered by the brands, such as after-sales services, warrantee, and free
installation
Different criteria are used for different products. For example, if a person wants to purchase a motorbike
out of Enfield Bullet 350; TVS Victor, TVS Centra, Suzuki Ferro; Hero Honda Spender, Ambition, and
CBZ; Kawasaki Bajaj Boxer, Pulsar and Caliber; LML Freedom, etc., he will consider following criteria:
i. Price
vi. Speed per hour
x. Safety
xi. Resale value
The brand that meets most of the above conditions reasonably is more likely to be preferred. Marketer
should highlight superior features of his brand. Some companies also advertise comparative table to help
consumers evaluate various brands. For example, Yamaha, Maruti, and Hyundai provide comparative table
in newspapers to show how the bike/car is superior to other brands.
benefits or satisfaction is preferred. Simply, the most attractive brand, that can offer more benefits in
relation to price paid, is selected by comparing one brand with others. Comparison shows
superiority/inferiority of the brands.
modify, or postpone a purchase decision is influenced by these factors. The first factor is attitudes of
others. The impact of other persons’ attitudes depends on degree of their negative attitudes toward the
consumer’s preferred brand, and consumer’s degree of compliance with other persons’ wishes. The second
factor is unanticipated situational factors. Purchase intension may change due to certain unanticipated
situational factors like price hike, loss of job, family income, major medical expenses, non-availability of
the preferred brand, or such similar factors. The third and the last factor is consumer’s perceived risk.
Degree of risk depends on price, attribute uncertainty, entry of a new superior product, and his self-
confidence. Sub-decisions in Purchase Decision:
i. Brand Decision:
satisfaction/dissatisfaction. Marketer must monitor the post-purchase experience of the buyers that
includes:

i. Initiator
ii. Influencer:
iii. Decider:
where to buy
iv. Buyer:
v. User:
A company needs to identify these roles because they have implications for designing the product,
determining messages, arid allocating the promotional budget.
…………………………………………………………………………………………………..
MARKETING ASSIGNMENT
Manali Lakhan
Roll no -90
Pricing Strategies :
1. Bundling – Colgate and brush
2. Surge pricing – Swiggy/Ola/Uber
4. Economical – Medimix soap
5. Premium – Sabhasachi

9. Psychological- Bata(Rs299)
-----
Backward integration: Nirma competed against Surf Excel through backward integration .
Types of Distribution:
Mass distribution: Intensive distribution – Parle G
Selective Distribution: Woodland, Kaya Skincare (restricts the number of outlets handling a
product)
Exclusive Distribution: Producers select only a few intermediaries. Example – OnePlus
• Advertisement: Honey boney- Idea
• Insight: Idea started as regional group but gradually built space. Idea started it’s network coverage
all over India.
STPD: NIKE
Segmentation
• Demographic:
Age- age group between 15-40.
• Psychographic:
Nike’s mission: To bring inspiration and innovation to every athlete in world.
“Run with me” Motto
• Behavioral:
Athletic feel
Utility based- basketball, football, cricket…outdoor
Style based- court sandals, flip flops, Pegasus, boots
• Geographical:
Urban
Targeting:
• Mainly concentrating on youth
• Sports enthusiast, fitness freaks
Positioning:
• They positioned themselves as ubiquitous brand and have shifted from product focus to attitude
focus
• Tagline- “Just do it”, “Your perfect running partner”
Differentiation:
Customize your own shoes and gear

New Product Development: Tata Nano
• Idea Generation:
To create an option for people who want to move from a 2-wheeler to 4-wheeler – at the price of a
2-wheeler
• Idea Screening:
• Concept testing and development:
When people were asked as to why a 4-wheeler was an aspiration – they said that they would have
• Business strategy development:
• Product design and development:

The nano is constructed of components that can be built and shipped separately to be assembled in a
• Test marketing:
Crash testing
• Commercialization:
Launch the product
BCG Matrix
QUESTION MARK
NESTLE NUTRITION PRODUCTS
• These are the products of nestle which a\have high growth share but low market share
• These are the products which are in nascent stage
• These products needs wise investments so that either they can be cashcows or stars
STARS
NESTLE NESCAFE COFFEE
• It holds 90% market share in India and 56% in world
• They have high market share and high growth market.
• It requires high investments and thus harvest high
• Nestle is interested to invest in it more to gain larger market share

• Its a holding stage of a company and later on it may become a cash cow.
CASH COW
NESTLE MAGGIE
• It has 80-85% market share and have high customer loyalty
• It has very high market share and low growth market
• It can be called as saturation stage and a stage of harvest
• Nestle don’t need to invest in it further and thus enjoys the profit and earnings from it
• Sales by volume is the ey factor and there is not much scope of growth in future
DOGS
NESTLE MILO
• Low growth and low market share
• Milo has a very few chance of growth in future
• Competitors like bournvita tookover it.
• It is a cash trap for the company and further investments can be risky
• It is also called Divest stage where more investments can be risky and should be stopped later on
Porter’s 5 force model: JIO
The bargaining power of customers is high because Number Portability is easily accessible to all
consumers and they have a choice between different telecom service providers. Consumers can choose
from a different plan offered by multiple telecom (Hubmobiles,2016) companies according to their
requirements. They can switch to any service provider as no switching costs are involved
Competitive rivalry is high in this industry as there are established brands in the industry. Airtel, Vodafone,
and Idea have been in the industry for around a decade. The plans offered by Airtel (ETtelecom,2017) and
Vodafone were similar before Jio entered the market. To survive in the market, Airtel has used defensive
strategy and reduced its prices to compete by Jio.
Threat of new entrants and substitutes is low because the telecom industry requires high capital investment.
Jio has already invested around Rs. 1.5 lakh crore for pan– India (Reuters,2017) operations. It will also be
fairly difficult for new companies to survive as there are already established networks. Even though Jio is a
new company, there are high chances for the company to survive as they have more capital to invest
(Financialtimes,2017). Jio took approximately five years to develop VoLTE technology and hence it is a
sustained competitive advantage. It will take new companies’ years to develop this technology which
reduces chances for a new company or a rival to be as successful as Jio as they have a first mover
advantage with VoLTE and 5G.
Market Challenger
on these areas.
Market Leader
Cocoa- cola
communication.
Market Nicher

Ferrari
Market Follower
· Cloning: if you get watches made from Rado as Rodo, or bags of Gucci, as GUCCA, than that’s
cloning.
ANMOL SINGHAL
ROLL NO. 63
NEW PRODUCT DEVELOPMENT
Idea generation
It can be by Internal sources like-Employees, R&D team or sales force
or External sources like customer, competitor and distributor.
Felt a need of coming with a product that can cool your skin at the same time brings glow.
so product should have SANDALWOOD and CUCUMBER extracts
it can be in various forms
a)soap
b) face pack
c)cream
d) face wash
Idea testing
Having surveys and asking consumer’s priorities.
Customer 1 a b c d
Customer 2 b c a d
Customer 3 a b d c
Customer 4 a c b d
After analysis of data collected from customer surveys we come up with the concept
Concept Creation
Rather than having a face pack and sitting idle with no work its better to have a soap form so that purpose
is being solved in just 2 min face wash.
Product Development
Now the soaps are being produced at small level for more of trials and samples
Test market
Now product is given in market and customers are being told to use it and their reactions and satisfaction
level are being analysed.
Commercialization
Now this soap is ready to be out in market as a commercial product and would be advertised through
various mediums.
Review of market performance
After Soap is out in market surveys and analysis would help to understand the need of the soap and reviews
of customers.
PRICING STRATAGIES
Skimming pricing
I phone is best example of skimming pricing. So they entered in market by high prices and later on prices
decreases. They charge high because:
It's status and exclusive product
Differentiation of product
Technology touch and may be initiator or first mover.
Building a brand as a luxury by providing a product with high prices
Penetrating pricing
Jio used this strategy to enter into market because of High competition existing in telecom sector. It's main
objective was to gain Market share by induce trial so that customer try the product. They realised the
importance of cheap internet access and provided the same to the marki. later on they slowly increased
their pricing and now they have starry making adequate profits.
Loss leader pricing or captive pricing.
Hp printers used this strategy where Hp tries to captivate the customer by selling the main product that is
printer at very low market price and then selling other complimentary products that is cartridge which are
used in that printer of HP at very high rates so that the losses due to lower prices can be compensated.
Surge pricing
Uber follow this pricing strategy where they leverage upon the need and demand rates of the customer for
their product and take advantage of that situation to earn well.
Uber increase its prices when demand is high and customer endup paying more comparatively. For
example on new year nights uber taxi rates increase at high margins as they are aware ghat demy would
increase at that particular moment.
EDLP pricing
D mart follow this pricing strategy. They give products at lower prices as compared to other brands and
that too on every day basis. It is possible because it invest less in their advertisement and more over d mart
procurement capacity is more that big bazar hence are able to negotiate better prices.
Psychological pricing
Bata started with this concept of pricing where they set their price lesser than whole numbers and try to
play with psyche of customers where price appears to be less which are actually not.
Freemium pricing
Voot followed this pricing strategy and offered free packs to and allowed the viewers to watch tv series for
free and later on started charging.
MARKET FOLLOWERS
ADAPTERS
DishTV came in 2004 with A dish concept and then Tata sky entered in market with the same concept
adapting it from its competition in 2006 and became the market leader.
IMMITATORS
Female footwear shops that almost try to copy the big brands design and sell in the market
Local boutiques and lehnga shops in chandini chowk copying or imitating sabhyasachi lehnga’s designs.
CLONERS
Colgate coming as coolgate in market
bisleri coming as bilseri

COUNTERFIETRS
Mi earphones sold as original as the authentic MI ones in some black market.
MARKET LEADER
EXPAND THE STRATEGY
ICICI bank entered into rural banking and agri business financing when it felt the heat of competition in the
overcrowded and super-saturated urban market
DEFENDING MARKETING STRATEGY
Position defence:
HUL increased its ad-spend on Clinic Plus and Sun silk shampoos and gave heavy promotions through
price reduction.
Flanking defence:
HUL successfully nourished its first Rs.100 crore Indian-made brand Vim in a competitive dish wash
market. It was able to check the attack of competitors through product innovation, attractive public
campaigns, road shows and public relations.
Pre-emptive defence:
Titan launched more brands and sub-brands to corner the market share of HMT watches in the early 1990s.
Counter offensive defence:
When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS decided to expand its coverage to
Ceat tyre’s hub in the north and west of India through innovative campaigns like road rallies, road shows
and attractive public campaigns.
Mobile defence:
XIOMI entering into US market after capturing many other country markets
Contraction defence:
HUL decided to concentrate on its core business areas, that is, soaps and detergents, and has emerged as the
clear leader in the toilet industry.
EXPANDING MARET SHARE STRATEGY:
Market leaders can improve their profitability by increasing their market shares, like HUL, Procter and
Gamble, McDonald’s and Titan
MARKET NICHER
• Bombay shirt company is one of the example of geographical nicher
• Sensodyne is again a product nicher, specifically for the people who have sensitivity issues
MARKET CHALLENGER
FRONTAL ATTACK
Pepsi introduces Diet Pepsi when Coke introduces Diet coke. Both have strength of product expansion and
a diverse product portfolio. So in a direct frontal attack, Pepsi also launches a product in response to its
market challenger.
FLANK ATTACK
Many technology firms like AMD vs Intel, Apple vs Microsoft, and others operate on the basis of Flank
attack
ENCIRCLEMENT ATTACK
The current E-commerce scenario is the best example of the encirclement attack where the E-commerce
companies are ready to go negative in their margins to beat a competitor on turnover basis. They want to
come on top and gain maximum customers by hook or crook.
BYPASS ATTACK
IPOD replacing Sony walkmans

ROLES OF PURCHASING
CASE: A WIFE TELLING HUSBAND TO BUY A NEW FLAT
INITIATORS: Wife who uttered the need of having a new flat
USER: Husband and wife as they would use that flat
INFLUENCERS: Property dealers can be big influencers as they have sufficient info to influence.
DECIDER: It can be either one of them or may be both together to decide which one to buy.
APPROVER: It can be Husband in this case or may be parents of them who would finally approve.
BUYERS: It can be Husband again in this case because he would make the payment finally.
GATEKEEPERS: Here it can be property dealer who can filter the information and may hide certain things
about the flat
STAGES OF CONSUMER BUYING BEHAVIOUR
PROBLEM RECOGNITION
Internal stimuli: I need new pair of specs because this one is now bend and lost its glow.
External Stimuli: Someone telling me to change my specs may be because it doesn’t suits my face.
INFORMATION SEARCH
Public Sources: Looking for various websites and googling various designs and brands.
Personal sources: Asking someone from my friends specifically about which brand to go for and what type.
Commercial sources: May not be in this case, but may be paying some websites to give me special feature
for giving me virtual trials and suggesting specs type.
Experimental: Going to various stores and trying different specs styles
EVALUATION OF ALTERNATIVES
After collecting various information and having trials its a time to evaluate choices, so one the basis of
popularity of brand, I preferred to go with lenskart and it provides better service and of course product
quality.
PURCHASE DECISION
Here I decide to purchase my Specs with a retail store of lenskart as I was getting more discount as on e
commerce website. I also kept attitude of others in my mind while making decision for certain type of
specs and also judge about certain risk factors related to it like its future warranty and service
PURCHASE
Final purchase of specs is being done by cash payment and I receive that product in my hand at that point
of time. No delivery day complexities.
POST PURCHASE
Satisfied: yes satisfied as of now but
Dissatisfaction: Its frame is too delicate
Dissonance: could have opted for any other set with more strength
BRANDING AND INSIGHTS
LIRIL in 1970s started with its advertisement showing a girl in swimwear bathing under the nature water
fall. This was not just to show the freshness of the nature and appealing girl bathing, it was much more than
that. At that era women were never considered to take care of themselves. They use to be utter busy with
their family responsibilities and were use to be in their boundaries. They never used to get time for
themselves, so by that campaign they wanted to project that bathing is the only time where they get time
for themselves so let yourself free. As free as that girl in advertisement and feel the freedom in that
moment and live fullest by using Liril.
PRODUCT LIFE CYCLE
INTRODUCTION
PRODUCT: A car with all basic facilities of 4 wheeler, enough headspace and leg space. Body made of
light steel.
PRICE: They kept pricing as 1 lakh
PLACE: Tata decide to launch where they can lure middle class people, so launched in singrur and then
pantnagar
PROMOTION: entered market as a car for lower middle class people as “ cheapest car”
promoted itself as replacement of two wheeler.
GROWTH
PRODUCT: There were no changes in product, but color additions started
PRICE: They used skimming pricing and at this stage nano price were little raised
PROMOTION: Promotions were made intensified and were displayed on TV, news papers
PLACE: Now it was not selectively distributed, it was now available with dealers
MATURITY
PRODUCT: new addition or modification occurred known as Gen X
PRICE: That raised price was maintained at this stage
PROMOTIONS: It became more extensive, tie up with banks and less interest loan offers
PLACE: Company using its showrooms for sale of Nano.

DECLINE
PRODUCT: No further changes in product, rather tried to come up with some amendments
PRICE: Started giving huge benefits along with a car
PROMOTION: Its promotion got slowed.
PLACE: Again the availability of product was less, and started disappearing in showrooms
PORTER 5 FORCES
STARBUCKS
1) THREATS OF NEW ENTERANT- MEDIUM
• Entry barriers are not very high, because initial investment to start a coffee business is not so high
• Even if some brand enters into the market catering starbucks, it would be difficult to be successful
as starbucks has large share of market due to its various factors like infra, efficiency, ambience, and
product quality.
• Switching cost may be low as a new brand may attract customer by lower price but it may get
compensated by its already existing brand imae, brand loyalty and market share
2) THREATS OF SUBSTITUTES- MODERATE TO HIGH
• Its competition is not only coffee, it can be from juices to team. Alcoholics to non alcoholic drinks
• Other pubs and restaurant that provide good ambience and quality
• Switching cost is little low but its brand loyalty and product premium quality moderates the threats
of substitutes
3) BARGAINING POWERS OF BUYERS- LOW TO MODERATE
• Size of individual purchase is small and so single buyers do not hold enough influence
• Coffee brand has diverse customer base and customer are quality sensitive and willing to pay high
prices for premium quality but price cannot be very high.
4) BARGAINING POWERS OF SUPPLIERS- LOW TO MODERATE
• Suppliers cannot bargain much because they have their own supplier diversity policy that is use to
select suppliers
• They source coffee ethically from different parts of world
• It has also tie up with coffee bean farmers that has helped to gain higher control over its supply
chain
• They build great relationship with tea and coffee farming community and educate them about better
coco farming techniques’.
5) COMPETETIVE RIVALRY ( MODERATE TO HIGH)
• There is monopolistic competition and competing firms are high
• Not only coffee brands and cafe are competitions but restaurants and fast food chains are the
competition
• Eg- McD majorly a burger chain has come up with Mc cafe concept and slowly capturing the
coffee market
BCG MATRIX
QUESTION MARK
NESTLE NUTRITION PRODUCTS
• These are the products of nestle which a\have high growth share but low market share
• These are the products which are in nascent stage
• These products needs wise investments so that either they can be cashcows or stars
STARS
NESTLE NESCAFE COFFEE
• It holds 90% market share in India and 56% in world
• They have high market share and high growth market.
• It requires high investments and thus harvest high
• Nestle is interested to invest in it more to gain larger market share
• Its a holding stage of a company and later on it may become a cash cow.
CASH COW
NESTLE MAGGIE
• It has 80-85% market share and have high customer loyalty
• It has very high market share and low growth market
• It can be called as saturation stage and a stage of harvest
• Nestle don’t need to invest in it further and thus enjoys the profit and earnings from it
• Sales by volume is the ey factor and there is not much scope of growth in future
DOGS
NESTLE MILO
• Low growth and low market share
• Milo has a very few chance of growth in future
• Competitors like bournvita tookover it.
• It is a cash trap for the company and further investments can be risky
• It is also called Divest stage where more investments can be risky and should be stopped later on
STP
SURF EXCEL
SEGMENTATION
Demographic: sex-females
age- women aged 25 and above
occupation- Housewives especially with kids
family status- Higher and upper middle class group
Geographic: Tier1 and tier 2 cities
Behavioural: Targeting customers who are ready to pay some premium amount for surfs and
detergents
Psychographic: - working mothers who balance work and family and are at manager level who
knows how to delegate the job
- Regularly update her with TV ads , news and avid TV watcher
- A women who is driven by quality and performance.
TARGETING
Focused on single segment concentration to focus on customer that has been identified as surfexcel mom.
more over they came up with different product version surexcel matic to target precisely who all have
washing machine in their houses and who love to take care of their clothes. This was specifically for
females who were working.
POSITIONING
Surexcel positioned itself as – washes whitest
it removes tough stains and thus be tension free. They started to project themselves as “ daag acchey hai”
keeping in mind that major part of dirty laundry comprises of children clothes
ANSOFF MATRIX
1) MARKET PENETRATION( EXISTING PRODUCT , EXISTING MARKET)
Selling existing product to existing customer, so they entered India competing with already market leaders
like Samsung and occupied 31%.
2) PRODUCT DEVELOPMENT( NEW PRODUCT,EXISTING MARKET)
XIOMI launching POCO f7 after redmi note 8 to carter those same market comprising of the premium
users of xiomi who aims for high rated cell phones of xiomi.
3) MARKET DEVELOPMENT( EXISTING PRODUCT, NEW MARKET)
XIOMI entering India and USA in order to carter new market with its already exisisting products. Xiomi
launched first MI store in philliphenes in march 2018 and planning to enter USA.
4) PRODUCT DIVERSIFICATION (NEW PRODUCT, NEW MARKET)
Xiomi came up with all together different product range, for example MI smart TV to carter different
market with different product.
PRODUCT LINE
Name-Anuj Jain
Roll no -66
Consumer and customer
I buy a mobile phone for my father then in this case I am customer and my father is consumer.
Pricing
Premium pricing- High prices are charged
Example- Porsche cars are premium priced the range of prices are 69.98lakh-2.53crore.
Penetration pricing- Low initial prices and then gradually prices are increased
Example- Android aims for greater market penetration with a penetration scheme. Android phones are available at a steep
discount, in the hopes that users will become loyal to the brand. This approach also opens a wider range of consumers up to the
Android marketplace.
Economy pricing- Low prices
Example- Nirma follows economy pricing where 1kg pack is available for rs109 where surf excel and other detergents are
priced around 170-200.
Skimming pricing- High initial prices and gradually the prices are decreased as competition rises.
Example- Apple follows this strategy, when iphone 6s was launched in year 2016 its price was 50000 and as of now in 2019 its
price is 24000.
Complementary Pricing-One of the products is priced to maximize the sales volume and which in turn stimulates the demand
of other product
Example- Gillete shaving blade is priced at just Rs60 and its razor blade is priced at Rs49(for 5 cartridge)
Differential pricing- Different prices at different time.
Example- This strategy is followed by airlines the prices of same flight for same route changes as the date of journey comes
closer.
Discount Pricing-
Example- Brand Republic sells branded clothes at discounted rates throughout the year.
Geographic pricing- Different prices in different geographies.
Example- Haldiram 800g bread is priced at Rs50in Nagpur and Rs.52 outside Nagpur.
Captive Pricing-
Example- Amazon prime, Zomato gold, Tata sky they follow captive pricing where consumers have to renew their subscription
over time.
Psychological Pricing
Example- Bata follows psychological pricing where all its products are priced at 999,1599,1999 etc.
Segmentation, Targeting and Positioning
· Segmentation
Demographic- 16-40 years monthly income <15,000 month.
Psychographic- People who are skin conscious, nature lover and seeking luxury bathing experience.
· Targeting- Skin Conscious young, modern men and women who want to look beautiful.
· Positioning- Gel bar converted into soap to give rich bath experience. Gentle on skin& acts as moisturizer.
· Differentiation- Transparent gel bar at good and affordable rates.
Product Life Cycle Of Maruti 800
Introduction (1983-1986)
First vehicle launched in December 1983
Cheapest car in Indian Market
Growth (1987-1996)
Maruti 800 comes up with new features like AC version and music system in the car.
Set up service centre every 50kms.
Maturity (1997-2002)
Sales touched 200000 mark.
Entry of competitors like general motors, Ford and Tata.
40 million two-wheeler owners targeted.
Decline (2002-
Sales of Maruti 800 declined due to heavy competition from Hyundai i10 and Chevrolet Spark.
Sales went down to 69,553 in 2007.
In 2012 introduced Alto 800 in place of Maruti 800.

Product line Patanjali
Nutrition& Grocery Medicines Home Personal Books and Health

media Care
Supplement Care Care
Badam Pak Candy Asava Agarbatti Body Lotion Audio Digestive

cassette
Chavanprash Gram flour Bhasma Dish wash Tooth Audio cds Health
bar paste(dantkanti) &wellness
Ghee Corn flakes Guggul Herbal Eye Care DVD and

gulal vcd
Honey Herbal tea Parpati Hair oil
Health drink Mustard oil Syrup Shampoo
Fruit Juice Salt,Spices Vati FACE CREAM
ANSOFF MATRIX OF MCDONALDS

EXISTING
MARKET
Clever pricing MC SPAGHETTI, MC ALOO TIKKI,

MCPIZZA, ROYAL PANEER
Heavy Meal
Speedy Service
NEW
MARKET
Has presence in 121 countries and McCafé, McSTOPS,

planning to Open stores in NIGERIA HOTEL(SWITZERLAND)
ARMENIA
EXISTING PRODUCT NEW PRODUCT
BCG Matrix of Samsung: -

High Star Question mark
Mobile, TV Samsung Smart Watch
Low Cash Cow Dog
Samsung Refrigerator, washing Samsung Printer

machine
High Low
Consumer behaviour
1. Need Recognition (Initiator)- I urged my father to buy a phone
2. Information Search (Gatekeeper)- I searched on various platforms to gather information regarding the various options I
have
3. Evaluation of Alternatives (Influencer)- I then compared the various models
4. Purchase Decision (Decision maker)- Choose the most suitable phone to buy
5. Purchase (Buyer)- My father buys the phone
6. Consumption (User)-My father uses it and is the user
7. Post Purchase Evaluation- he then uses it and evaluate how friendly the UI of phone is
·
Advertisement:-Bande Ache hai – ICICI Bank
Insight-Jo Zimmedari nibhate hai, jatate nai. For the men of the society who take up many responsibilities
Market Challenger
Frontal Attack- : Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the same
level of the quality as that of other competitors in the market
Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna” for the rural people
and outshine the other coloured TV players who had a less focus on these areas.
Encirclement Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well before the
Coca Cola’s mineral water brand.
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to surpass each other.When
the Coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using the punch line “ Nothing official
about it”.
Market Leader
Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk shampoos and gave heavy promotions
through price reduction.
Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore Indian-made brand Vim in a
competitive dish wash market. It was able to check the attack of competitors through product innovation, attractive public
campaigns, road shows and public relations.
Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the market share of HMT watches in
the early 1990s.
Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS decided to expand its
coverage to Ceat tyre’s hub in the north and west of India through innovative campaigns like road rallies, road shows and attractive
public campaigns.
Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound and outbound tour operator,
flouriest and so on. Such diversification into related areas comes under mobile defence strategies.
Market Nicher
End user specialist: Tennispoint All tennis needs are provided by the firm
Vertical level specialist: Heavy Transport firms moving heavy machinery and loads. They have knowledge of alerting police,
closing of roads, etc
Customer size specialist: Bangalore malls like Bangalore central mall, High footfall (1000 +) – garuda and forum mall,
Medium footfall (501-999)- central mall & majestic street, Small footfall (<501)- Hong Kong bazaar & shangai bazaar
Specific customer specialist: High performance carburettors to specific brand like BMW, Porche, Ferrari
Product /Product line specialist: Amul offers a series of closely related products such as milk, butter, ghee, yoghurt, ice-cream,
chocolates, etc.
Market Follower
Adapter: Cars like Maruti 800,Alto, Zen, brio, etc are all adapters and they adapt the best qualities from each other by changing
the style of the automobile.
Adapters can soon become leaders as well because they can adapt, learn and make a better product than the higher competition.
Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution to
Cloning: if you get watches made from Rado,or bags of Gucci, as GUCCA, than that’s cloning.
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other products in the market which
are counterfeited
ROLL NO.: 102
Shruti Purandare
CONSUMER AND CUSTOMER:
Baby products Johnson’s baby shampoo
Customer: Mother
Consumer: Baby
NEW PRODUCT DEVELOPMENT:

Nano, popularly known as the Rs 1-lakh car, was conceived in 2003 and in 2006 Tata Motors
decided to set up the Nano plant in Singur in West Bengal. Work began at Nano plant at Singur on
January 21, 2007 and the car was unveiled at the Ninth Auto Expo in New Delhi in January 2008
Tata Nano was launched in India, targeting the families who use bikes as a form of travel. It was
designed to allow the families to have a more comfortable, safe means of travel.
Idea Generation: To create an option for people who want to move from 2 wheelers to 4 wheeler in
affordable price bracket.
Idea Screening: Alternatives explored where existing vehicles could be modified.
Concept Testing and development: Getting feedback from potential customers.
Business Analysis: Regarding affordability and feasibility, revenue generation and demand
forecasting
Test Marketing: Pilot testing
Commercialization: Decisions regarding launch
PRICING STRATEGIES:
· BUNDLE PRICING: Body Shop
· MARKET SKIMMING: Airlines
· PENETRATION PRICING: Reliance Jio, TATA Nano
· VALUE BASED PRICING: Paintings and artworks
· SURGE PRICING: OLA
· PREMIUM PRICING: Forest Essentials
DISTRIBUTION:
Exclusive distribution: Auto dealers

Selective Distribution: Croma, Vijay Sales
Intensive Distribution: Maggi
PROMOTION AND INSIGHTS:
Idea Honey Bunny Advertisement:
Initially Airtel wasn’t operated all over India. After it became national people still thought it was a
local network. So to show it as a national network this advertisement campaign was done.
Insight: National Brand
STPD:
Product: SHAMPOO
Dove: Unilever
The Dove “Aapke baal aapki Marzi campaign”
· Specifically made to target common hair problems
· Tagline: The secret of beautiful hair. Give your hair just the right amount of care.
· Segmentation: Women above 18 who use beauty products, who have a purchasing power.
Psychographic segmentation is that it aims to create a psychology stating imperfection is the
new beauty.
Pantene: P&G
· Segmentation: Psychographic to target people with certain lifestyle and aspirations with
respect to hair. Behavioral segmentation with benefits sought, oil replacement for those who
find importance in oiling their hair.
· Target: Women above 18.
· Positioned as an affordable alternative to salon brands. Reasonably priced convenient hair

shampoo. Women looking for salon like results at home.
Chic: Cavin Kare
· The concept of sachet: Generally associated upper class tag with shampoo faded away.
· Focus was on largely rural market, value conscious sections in urban areas: Trials on school
boys to demonstrate how to use
· Positioning: Availability and affordability. Became no. 1 in South India.
· Unmatched distribution
· Strategic pricing
Johnson & Johnson’s baby Shampoo: Johnson & Johnson’s
· Category: Baby care brand, Hair care
· Tagline: No more tears
· USP: The mild tearless formula, baby shampoo which is gentle for the eyes as pure water.
· Segment: Small Babies and mothers
· Positioning: No tear formula which is soap free and dermatologically tested.
BCG:
Company: Patanjali
QUESTION MARK: Cornflakes (10%), Oats (7%)
STAR: Kesh kanti (9%), Dant Kanti (5%), Chyavanprash (9%)
COW: Ghee (35%), Honey (35%), Ayurvedic Medicine (35%)
DOG: Panchgavya Soap.
ANSOFF MATRIX:
Company: Starbucks
Market Penetration: Espresso, Cappuccino
Product Development: Starbucks Card
Market Development: Frappuccino

Diversification: Mugs, Tumblers, Coffee Machines
PORTER’S 5 FORCE:
Company: OLA
· Rivalry among Competitors (HIGH): The competition among the players in this market will
be high and rising. Apart from price people these days will look for comfort, luxury, availability
of the car etc. where products are not differentiated competition will be about price.
Factors affecting competitive rivalry are that there are very few players in the market,
Government regulations etc.
· Threat of New Entrants (MODERATE-HIGH): Significant threat as nothing about the

business or the application is secret. In other words it can be replicated by any other company
without massive amounts of capital requirements because of the internet based business model,
new entrants will not have issue to access distribution channels. Furthermore, low entry barrier
into the ride-hailing industry, the number of local and global competitors have continuously
been increasing.
The absence of switching cost from Ola to a new taxi technology for customers further increases
the threat of new entrants.
· Bargaining power of buyers (HIGH): Bargaining power of buyers is mostly fuelled by the
abundance of competition in the industry. Ola customers are price sensitive. If the company
decides to increase the cost in its attempt to become profitable considerable number of
customers might stop using their services, they might choose alternative options or even prefer
public transport.
· Threat of substitutes (HIGH): The biggest threat of substitute is the public transport. Price
factor and availability of close competence in public transport.
· Bargaining power of Supplier (MODERATE-HIGH): The major suppliers in the industry

are the Car dealers and skilled drivers. Car dealers have reasonably high bargaining power also
skilled drivers have a high bargaining power as they are on high demand.
PRODUCT LIFE CYCLE:
Product: Maggi
Introduction:
· High failure rates
· No competition
· High marketing and production costs
· Created an entire new category of instant noodles
· Promotional campaigns in school
· Advertising strategies focusing on kids
Growth:
· Increasing rate of sales
· Initial profits
· Entry of competitors
· Offered in more sizes and flavor options
Maturity:
· Extending product line
· Heavy promotions
· Saturated markets and heavy competition
Decline:
· Long run drop in sales
· Elimination of non-essential marketing expenses
CONSUMER BEHAVIOUR:
Consumer buying process
· Problem Recognition: The customer must have a reason to believe what they want, where
they want or how they perceive themselves
E.g.: A customer is looking to buy a laptop with the highest specifications and graphics.
· Information Search: Public, Personal, Commercial or Experimental Trials
E.g.: The customer may start searching online across various shopping websites also might
have a look at showrooms to gather information.
· Evaluation of alternatives: Customers want to ensure that they have done enough
research prior to making the purchase.
E.g.: Customer will now compare all the alternatives which are available based on
requirements and affordability.
· Purchase decision: After exploring alternatives they are deciding whether to move forward
with the purchase or not.
E.g. After examining the alternatives the customer has decided to buy a laptop that suits
his/her needs.
· Purchase: Tell your brands purchase process are there too many steps? Is it complicated?
E.g.: The purchase process is simple/complicated what the available payment options are, is
the option of EMI available.
· Post purchase evaluation: Associated with consumer satisfaction.
E.g.: How satisfied is the customer with the product and service.
PRODUCT LINE EXTENSIONS:

Company: Patanjali
NUTRITION GROCER MEDICIN HOME PERSON BOOK HEALTH

AND Y ES CARE AL CARE S AND CARE
SUPPLEMEN MEDI
TS A
Chyawanprash Corn Asava Agarbat Body Audio Digestive

Flakes ti lotion Cassett
e
Ghee Herbal Syrup Dish Toothpaste DVDs Supplemen

Tea wash Dantkanti and ts
bar CDs
Honey Mustard Churna Shampoo

oil and
Conditione
r
Fruit Juice Spices Parpati Aloe Vera

Gel
Salt
MARKET CHALLENGER:
Frontal: Coke vs. Pepsi
Flank: Bata vs. Woodland
Encirclement: Royal Enfield vs. Bajaj Dominar
Bypass: Pepsi and Coke by launching mineral water products
Guerilla warfare: Pepsi and Coke, Dunkin Donuts
MARKET LEADER:
Adding new users/segments: Fair and Handsome,
More frequent usage: Pepsodent

Discover new users: Good night fast card
Flanking defense: Maggi atta noodles
Preemptive defense: ITC venturing into hotels
MARKET NICHER:
End Use specialist: Sabyasachi
Vertical level specialist: GoDaddy website creation
Customer size specialist: ALL for plus size customers
Event Specialist: WedMeGood
MARKET FOLLOWER:
Adapter: Cars like Maruti 800,Alto, Zen, brio.
Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV
revolution to India but was soon imitated by Videocon, Airtel, Reliance
Cloning: If you get watches made from Rado, or bags of Gucci.
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas
ARUSHI GUPTA PG2 Roll No- 68

TABLE OF CONTENTS
1.Consumer and Customer
2.New Product Development
3.Pricing strategy
4.Distribution
5.Promotion and insights
6.STPD
7.BCG Matrix
8.Ansoff Matrix
9.Porter’s 5 force
10.Product Life cycle
11.Consumer Behavior
12.Product life cycle
13.Consumer Behavior
14.Product Line Extensions
15.Market Leaders, Challengers, followers, Nichers
CONSUMER CUSTOMER
Say the Mom and her baby, roaming around a shopping mall, stop near the baby diapers section. Who
do you think is the customer here and who is the consumer? The mother is the customer for the baby
diapers, but her baby is the consumer.
An individual goes to a shop and buys a wrist watch for his friend's birthday. The friend who buys the
watch is the customer as he has done the transaction with the seller. Once he gives the gift to his friend,
it is the friend who will wear the watch, and hence is the end consumer.
Lego’s customers are children, but shoppers are their parents. Lego used this difference to their
advantage to create two separate user journeys, each covering touch points characteristic for that
particular group. This helped Lego create a more engaging environment and user experience for both
groups.
If you buy a smartphone for yourself, you are both the customer and the consumer.
PROMOTION AND INSIGHTS-LIRIL
In the late 70s the ad of Liril soap, conceptualised by Padamsee, took India by storm. The jingle 'La
Lalalala la la la la' was hard to forget. The girl in the ad, Karen Lunel, became an overnight star and
is still identified as 'the Liril girl'. At one glance, the commercial which shows Lunel in a green bikini
prancing around under a waterfall, may seem like the 'ultimate male fantasy' that the boys’ club of an
advertising house came up with. But Padamsee wasn't meaninglessly sexualising a female body, as
Bollywood back then did in films like Satyam Shivam Sundaram
Padamsee understood that the only 'personal' time that an Indian woman has for herself is the 10
minutes she is alone, taking a bath. The rest of her time in the day is claimed by her children, husband,
household chores and work commitments. But in those ten minutes, when she is alone, Padamsee
discovered through research and focus group discussions, she likes to think about 'escaping the
drudgery of every day'. She dreams of Bollywood. She just wants to get away.
That was the reason Liril ad was made — to show the wild, fun-loving side of Indian women, who back
then did not enjoy that freedom. In public spaces of television and films, women were constantly
portrayed as 'shy things', always covered up, demure and obedient. The Liril girl smashed that mould
into pieces.
Padamsee modelled the Liril girl on Jane from the film Tarzan. She was one of his favourite characters,
and the scene of her bathing under a waterfall was what inspired him to shoot the ad in Kodaikanal,
under a fountain. That helped him create a sense of ultimate escape into the wilderness for the Indian
women.
MAC COSMETICS STP
Segmentation and Target Market
In order to increase brand awareness and appeal to a larger audience, MAC Cosmetic is must give
more attention to the working women market as they make up a large portion of cosmetic users.
Demographic
The audience of females between the ages of 25 to 50 is a key group to market to because they are
professional women who must look their best and put their best face7 forward. These women are from
the mid to high income bracket and tend to be well established in their career. It is also important to
note that these women are postsecondary educated and search for the best brand of products to use on
their skin.
Psychographic
With the current work environment and daily life being fast-paced, the target markets pressed for
time and need to rely on their cosmetic products to last through out their busy day. Along with living
busy lives, these women are socially active, technologically savvy, and follow fashion trends
Geographic
The target market is seen across Canada, with a specific focus on major urban markets. It is important
to penetrate major markets in order to effectively reach the majority of the primary target audience.
Secondary Target The secondary target market is females between the ages of 18 and 30, at both
secondary and post-secondary education levels. Students and recent graduates, located in major urban
markets are important for this target market because the majority of students are situated in the more
populated areas of cities. This target market would be more inclined to utlize untraditional media for
information, in the way of socialmedia and online advertisements.
Positioning
Strategy Statement
We can utilize the existing positioning strategy statement, which is as follows:
“MAC Cosmetics is a youthful, irreverent, cool confident, social & sophisticated brand”
BCG OF APPLE-in global market

DISTRIBUTION OF MAC COSMETICS
MAC Cosmetics does not offer its product items via unauthorized retailers or independent boutiques.
They can be only purchased via its personalized MAC stores and its authorized dealers House of
Frasers, Debenhams and Selfridges. The company believes in building a direct relationship with its
customers and offers personalized services.
PRODUCT LINE EXTENTIONS
Market leaders, Challengers, Followers, Nichers
● Market Nicher:
1. End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want
a long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells
2. Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s

3. Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts
4. Product specialist: UNTUCKit brand has created a new line of products for people who do not like
5. Specific customer specialist: Weber carburettor is a company which provides carburettors to only
● Market challenger
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “
these areas.
3. Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention
4. Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina”
● Market leader
1. Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also in
marketing they enjoy beverage of world-class marketing is what makes Coca-Cola the world leader in
creative communication.
● Market follower
PORTER’S 5 FORCE FOR INDIAN TEXTILE INDUSTRY

Bargaining power of customers (demand scenario)
Global textile & clothing industry is currently pegged at around US$ 440 bn. US and European
markets dominate the global textile trade accounting for 64% of clothing and 39% of textile market.
With the dismantling of quotas, global textile trade is expected to grow (as per Mc Kinsey estimates)
to US$ 650 bn by 2010 (5 year CAGR of 10%). Although China is likely to become the 'supplier of
choice', other low cost producers like India would also benefit as the overseas importers would try to
mitigate their risk of sourcing from only one country. The two-fold increase in global textile trade is
also likely to drive India's exports growth. India's textile export (at US$ 15 bn in 2005) is expected to
grow to US$ 40 bn, capturing a market share of close to 8% by 2010. India, in particular, is likely to
benefit from the rising demand in the home textiles and apparels segment, wherein it has competitive
edge against its neighbour. Nonetheless, a rapid slowdown in the denim cycle poses risks to fabric
players.
Bargaining power of suppliers (supply scenario)
India is the third largest producer of cotton in the world after China and US and has the largest area
under cultivation. Cotton, a key raw material in the textile and garment industry, accounts for about
30% of the fabric cost and 13% of the garment cost. India has an abundant supply of locally grown
long staple cotton, which lends it a cost advantage in the home textile and apparels segments. Other
countries, like China and Pakistan, have relatively lower supply of locally grown long staple cotton.
Moreover, low cotton prices due to a bumper cotton crop would enable India to lower its production
cost and sustain pricing pressure. Further, efforts on improving the yield per hectare would ensure
higher productivity and production, thereby providing the much-needed security of raw-material
supply to textile producers.
India also enjoys a significant lead in terms of labour cost per hour (US$ 0.6 in 2004), over developed
countries like US (US$ 15.1) and newly industrialised economies like Hong Kong (US$ 5.1), Taiwan
(US$ 7.1), South Korea (US$ 5.7) and China (US$ 0.9). Also, India is rich in traditional workers adept
at value-adding tasks, which could give Indian companies significant margin advantage.
Threat of new entrants
In the quota free regime, capacity expansion is the name of the game in the textile sector. Resultantly,
smaller players who cannot venture into the global markets are flooding the domestic markets with
excess supply, thus weakening the pricing scenario. Be it denim (Arvind Mills), home textiles (Welspun
and Alok Industries) or branded apparels (Raymond), new capex and consolidation with international
players is also not likely to safeguard margins for the larger players, unless they can tap a significant
pie of the overseas markets.
Threat of substitutes
Low cost producing countries like Pakistan and Bangladesh (labour cost 50% cheaper) are also posing
a threat to India's exports demand. Infact, players like Arvind Mills have already started feeling the
pinch as overseas buyers have started shifting to 'alternative sources', thus impacting their incremental
volume off-takes.
Competitive rivalry
India's logistic disadvantage due to its geographical location can give it a major thumbs-down in global
trade. The country is distant from major markets as compared to its global competitors like Mexico,
Turkey and China, which are located in relatively close vicinity to major global markets of US, Europe
and Japan. As a result, high cost of shipments and longer lead-time coupled with lack of infrastructure
facility may prove to be major hindrances.
The fragmented structure of the industry has also stood in the way of achieving true integration
between the various links in the supply chain. The sector has one of the longest and most complex
supply chains in the world, which the larger players are trying to correct by integrating their
operations and improving efficiency levels.
Textiles being a fairly regulated sector till the recent past (quota regime), another indispensable leg of
the above analysis is government regulations. Technology Upgradation Fund Scheme (TUFS) was
launched in FY99 for a period of five years (later extended upto FY07) to promote the upgradation of
the textile and jute industry. The scheme aimed at providing loans to the sector at internationally
comparable rates of interest (5% lower than the domestic interest rates), which enabled the players to
upgrade their technology at lower cost of capital. Establishment of 'Apparel Export Parks' and fiscal
incentives in the recent budgets also indicate the government's resolve to aid the sector's growth and
international competitiveness.
As one can comprehend from the above analysis, the potential for the sector's growth are ample, but
the trick lies in competing effectively against rivals. Consolidation of the industry and delivery of better
quality at effective rates and minimum lead time would certainly help the players surmount all
competitive pressures.
PRICING STRATEGIES
Branded unleaded petrol is sold at a higher price than regular unleaded petrol. The consumer never
gets to test if the branded is better, yet he buys the branded offering thinking if it’s expensive, it must
be better.
Oneplus launched its flagship product Oneplus 1, which had all the features of an iPhone, at a highly
affordable price of $299. Once the company acquired a good market share, it started launching its
products at a premium. The recent phones from Oneplus are priced in the range of $500-$700.

Aldi uses this no-frills economy pricing strategy where it operates small stores, only sells products
which have a good demand, keep products in their original shipping containers, and even charges the
customers if they ask for carry-bags.
Smartphones (both iPhones and Android) are introduced in the market at a higher price, but the price
is reduced as the time passes.
A perfect example of a company adopting a predatory pricing strategy is Amazon which, in 2013,
offered books at a price less than the cost price and even shipped it for free just to win over the
traditional brick-and-mortar competitors.
ANSOFF MATRIX -AMUL

RELISPRAY-PRODUCT LIFE CYCLE
INTRODUCTION: RELISPRAY was launched in the market in 1986 by Midas Care Pharmaceuticals
Pvt. Ltd. At that time the pain reliever spray market was unexplored in India and it was a major
challenge to inform potential consumers.
Challenges: High risk venturing out into unexplored territory. Low profits, slow sales growth and high
expenses to build product awareness and increase sales & consumption. Relispray as a brand had to
face a challenging task of introducing the Indian consumer to the possibility of purchasing and using
a pain reliever spray, which at that time was non-existent.
Opportunities: Early mover advantage. Being a category creator has an advantage of reaping long-
term dividends. Early adopters were bound to purchase and increase the sales at the initial stage for
RELISPRAY
GROWTH: RELISPRAY after a successful launch in a matter of two decades had rapidly rising sales
and profits, and thus entered a growth stage. In this stage, the advertising and promotional costs
reduced and the emphasis was more on customer loyalty and retention. To sustain market share
growth RELISPRAY introduced new variant RELISPRAY NITRON catering to a specific target
audience
Challenges: Build trust, maintain consumer loyalty, improve product quality and keep the prices low.
Opportunities: Grabbing a strong foothold in the market as the instant pain reliever. Increase the reach
through improved distribution network.
MATURITY: With Sprays like Volini by Ranbaxy and Moov bu Paras Pharmaceuticals as well as
alternatives such as Moov Gel, Volini Gel, Zandu Balm, Tiger Balm etc competition intensified and
rate of sales growth declined. Despite heated competition, Relispray sales volume stabilized and it
continues to hold the position in the market. Change in its marketing strategy can be seen in the price
promotions and discounts, which now are an integral part of Relispray selling strategy to beat the
competition.
Challenges: A new breed of alternatives emerging in the segment. Fierce competition evolving.
Ranbaxy's Volini due to its aggressive marketing push has eaten away a large piece of market share
pie and has a rapidly growing sales volume, providing a threat.
Opportunities: Growing disposable incomes of the middle class Indians and rise in the number of
people wanting instant relief still provide an ample opportunity that can be utilized by REISPRAY
DECLINE : Sales fall in the decline stage of the PLC which may occur due to a number of reasons :
technological advances, shifts in consumer tastes and increased competition. Relispray continues to
have an impeccable track record and is still far away from the decline stage.
In order to gain momentum with the increasing demand of diesel powered cars in India, Maruti Suzuki
is planning to introduce two new diesel powered models by late 2014 and this time you won’t see the
tried and tested Fiat sourced 1.3-litre Multijet turbo diesel engine powering them. The Japanese
automaker, Suzuki is said to be developing two new diesel engines for the Indian market. India’s
largest passenger carmaker will be introducing 1.0-litre and 1.4-litre diesel engines, getting rid of the
Italian carmaker’s 1.3-litre Multijet diesel mill.
This move can result in reducing manufacturing costs and can help the carmaker to price the products
aggressively. Maruti Suzuki has tasted tremendous success in the Indian market with the Fiat sourced
Multijet diesel engine powering the Ritz, Swift, DZire, Ertiga and SX4. The Italian carmaker’s
technology has helped Maruti Suzuki find itself amongst the top selling cars in the Indian car market
consistently every month. The diesel engines under development by the Japanese automaker can help
the company to target a range of segments.
The small 1.0-litre diesel engine can power compact hatchbacks like the WagonR and A-Star, while
the bigger 1.4-litre diesel motor can be used in the Swift, DZire, Ertiga as well as the upcoming compact
SUV based on the XA-Alpha concept. Maruti is readying up a diesel engine plant in Gurgaon with an
investment of around Rs. 100 crores and an annual production capacity of three lakh units. The
agreement with Fiat says supply of one lakh diesel engines to Maruti for three years starting from
2012, which means beyond 2015, Maruti Suzuki might not get diesel engines from Fiat
Name – Sahil Arora Roll no. - 106
Types of Distribution Channel
Zero Level – IKEA, Amazon kindle, Echo dot, Vedaka
One Level – McDonalds, Bikanervala
Two level – Electronic companies like whirlpool, LG, Samsung
Three Level – HUL, Danone
Dual Distribution – Xiomi, Bata
Segmentation, Targeting, Differentiation, Positioning
Income groups classifications (as per World Bank data):
Lower – Less than ₹70069
Lower Middle - ₹70137-₹273098
Upper Middle - ₹273167-₹845955
High – more than ₹846023
Segmenting Royal Enfield- Hero- KTM - Bajaj -

Basis Bullet Splendor Duke Pulsar
Demographics Income Upper middle, Lower Upper Upper
high Middle, Middle, Middle
Upper High
Middle
Age 24-40 18+ 21-30 21-45
Gender Male Male Male Male
Geographical Area Tier 1, Tier 2, Tier 1, Tier Tier 1, Tier 2 Tier 1, Tier 2,
Tier 3 cities 2, Tier 3 cities Tier 3 cities
cities, Rural
area
Behavioural Loyalty Very High Medium Medium Low
Usage Light High Medium High

rate
Positioning Muscled, Low cost Made for Definitely

sturdy & reliable bike speed & male,
macho bike, with more stunts muscular
can go mileage bike with
anywhere, good speed
suitable for all
terrains, status
symbol
Differentiatio Made like a Reliable, Speedy, Middle

n Gun, Goes like good looks, light ranged
a bullet – Solid mileage weight, stunt speedy bike
build, vintage bike with good
look, thumping looks and
sound power
Porter’s five forces model
Telecom Industry
Threat of new Entrants – Low because of following reason:
High Entry and Exit Barriers
High Capital investment
Already established big players – Market share of Vodafone Idea – 31.73%, Jio – 30.25%, Airtel – 27.74%
& BSNL and MTNL – 10.28%
Continuously evolving technology for example – From 2G, 3G, 4G to 5G, VoLTE, & VoWIFI
Low profits due to high competition
Bargaining Power of Suppliers – Moderate because:
Many suppliers for Equipment required for setting towers
Many manufacturers of Sim Cards
Cost of Purchasing Spectrums from government is fixed and high
Backward & Forward Integration
Bargaining Power of Consumer – High because of following reason:
Price sensitive customer
Low switching cost because of new MNP Rules & regulation as TRAI reduced the prices for mobile number
portability from Rs19 to Rs5.74
Customer have full information about the current prices of plans offered by other companies.
Threat of Substitute
Availability of substitutes – Applications using VoLTE technology to offer voice calls like WhatsApp,
google duo, etc
Companies offering Internet like DEN Networks, Excitel, and ANI Network
Rivalry in Competitors
So, Rivalry is high in the industry because of the above reasons. Therefore industry is not a good option for
a new entrant to setup its business.
BCG Matrix (ITC)

STAR QUESTION
MARKS
ITC Hotels –
15% market B Natural – 7%
share in Premium market share
hotels
ITC Paperboards
& Packaging-
30% Market
share
Aashirvaad atta –
28% market
share
OWS DOGS
ITC Cigarettes – Wills Lifestyle

84.27% Market
Share ITC InfoTech
Gold Flake
Kings- Highest
selling brand
Ansoff Matrix
Market Product
Penetration Development
OLA Cabs in India- Foodpanda in India in

Market share 53% in 2017
2018 & 56.2% in
2019
Market Diversification
Development
OLA Cabs started

E-Rickshaw in
operation in Australia
Liverpool, UK
in 2018
Consumer Buying Process
Problem Recognition
Want to generate printed bills for customers who bought product from my shop.
Information Search
Personal & Experimental search – known people, internet, search for shops using automated billing,
Experience the billing process on companies showroom etc
Product that can solve my problem – Tower PC with printer, Laptop with printer, automated billing machine,
Card swiping plus Billing Machines
Brands offering these products- HP, Lenovo, Dell, Paytm, Mswipe, Casio, Canon
Evaluation of Alternatives
Tower PC with Printer- High investment, requires a lot of space, low printing cost, Requires Internet, Fast
billing process, cost 40K
Laptop with printer – Does not require much space, requires internet, High investment, Low printing cost,
Fast billing process, cost 44K
Automated billing machine – limited no. of product storage, requires thermal paper – high printing cost, does
not require much space, fast billing, and cost 20K
Card swiping plus billing machine – won’t require a separate card swiping machine, won’t take much space,
handy, light weight, requires thermal paper – high printing cost, low investment, takes time to print bills, cost
9K.
After evaluating all come up with the option of card swiping plus billing machine as it is most feasible.
Purchase Decision
Have full knowledge of product and its price so take the final decision of buying the product.
Post Purchase Evaluation
After using the product I feel the product is good but the billing process is too lengthy plus the cost of thermal
paper roll is high but they charge low transaction charges for card payments so overall satisfies with the
product and recommend the product to others as well.
Market Challenger
Frontal Attack – Horlicks & Complan brand War, complan was the market leader and Horlicks was the
challenger. Horlicks attacked the complan strength by advertising that complan has inferior quality of
products in it.
Flank Attack – Maggie & Yippee, Maggie is the market leader and yippee noodles attacked its weakness
that Maggie noodles get sticky after some time but their noodles does not get sticky.
Bypass Attack – OLA cabs invested in food panda to gain market share in food delivery segment and
diversify its risk.
Encirclement attack – Royal Enfield & Bajaj Dominar, Bajaj dominar attacked royal Enfield strengths
that are muscled, sturdy, heavy and simultaneously attacked on its weakness that are less speed, poor braking
system, etc
Guerrilla attack – BMW & Mercedes, in movie Ghajini BMW showed Amir Khan riding in BMW while
his employees riding in Mercedes, so proves BMW is superior to Mercedes
Pricing Strategies
Skimming Pricing - Samsung m40 was initially launched at 19999 in India but after 2 months it was sold at
16999.
Penetration Pricing – Jio launched its data plans at much lower rates than that of airtel , Vodafone and idea
to gain high market share.
Premium Pricing – Ford Mustang basic model is sold at 75 lakh in India, so that only a particular premium
segment of the population can buy that car,
Complimentary pricing – HP inkjet printers priced at 1399 but its cartridge cost around 699.
Geographic Pricing – Café coffee day charges different prices for the same product at different places like
in cannaught place it sells the same coffee for 500 while at jhandewalan it sells for 250.
Psychological Pricing – Amazon Echo priced at 7999 instead of 8000.
Product Line (HUL)
Beauty & Personal Food & Refreshment Home care Water Purifier
Care
Axe Cornetto Cif Pure it
Dove Knorr Comfort
Lifebuoy Lipton Wheel
Lux Magnum Domex

Pepsodent Bru Vim
Ponds Brooke bond Surf Excel
Sunsilk Kissan Rin
Vaseline Kwality Walls Sunlight
Product Life Cycle
Sony Walkman
Introduction- Launched on 1st July 1979 in US for 200$. Sold 50000 units in 2 months
Growth – New models introduced every sixth month and on 1st July of every year, anniversary edition was
launched.
By the end of 1980 they have sold 220 million cassette for Walkman. But major change in the technology
happens every five or six years.
Maturity- in 1981 competitors entered the market like Toshiba, Panasonic, etc they have come up with
walky and compact disc player in market. By the end of 1984, technology of Walkman start being obsolete,
so Sony came up with its Discman range with the same name Walkman.
Decline – By the end of 1989, the demand for Walkman declined drastically, because of the invention of
MP3 Players as they give better voice quality than Walkman’s. But Sony started to launch its product in
different market as well so for some countries the decline stage happened later.
Anupriya Agrawal-67
Consumer and Customer-The person who buys the goods or services from a seller is known as the
Customer. The person who uses the goods or services is known as a Consumer. Example- A mother
buys diaper for her baby in this case baby is the consumer and mother is the customer.
Pricing Strategies
Penetration Pricing(induces trails) - It focuses to gain market share. Example – Jio.
Skimming Pricing- LG has a patent of Cool Door. Here, skimming is associated with skimming.
Distribution also involves some exclusivity.
Bundle Pricing-
· Bundle with same product.

· Bundle the product of same company.
· Bundle the product of different Company.
Premium Pricing- Introduction of a new product with a competitive advantage. Example-Gillette in

blades.
Search Pricing- Example – OLA, Uber etc.
Complementary Pricing-One of the products is priced to maximize the sales volume and which in turn
stimulates the demand of other product.Example- Gillete shaving blade is priced at just Rs60 and its razor
blade is priced at Rs49(for 5 cartridge).
Economy pricing: Example- Nirma
Everyday Low Pricing- Example- Big Bazaar
Distribution- HUL’s Khushiyon ki Doli in 3 states Uttar Pradesh, Andhra Pradesh and
Maharashtra. The main objective of the campaign is to reach out to villages with HUL brand’s
message and to engage with consumers deeply to rapidly change brand adoption metrics.
Promotion & Insights- Airtel’s ad Har ek friend was launched when Airtel was the pro-active
one to realize that the future is data. Then it launched another ad Jo Tera hai woh mera hai.
Coca Cola’s ad (Thanda matlab Coca Cola ) emphasizes on distribution. In the ad it is shown that
Coca Cola is available everywhere even at small pan shop.
Segmentation,Targeting,Positing and Differentiation –
Demographic Segmentation -Dove focuses on women of all ages groups above 18. Women who
uses beauty products and who have high purchasing power.
Psycographic Segmentation- Dove aims to create a psychology in women where ‘beauty’

incorporates all ages , body shapes and sizes. “You are beautiful the way you are” is the
message Dove promotes and wants every women to believe.
Targeting- Highly focuses on working women as they don’t have time to take care of themselves,
so it uses its USP of double benefits (soaps and moisturizer) to attract target.
Positioning- Dove Soap is positioned as a personal care beauty product. Dove does not call itself
a soap but a mild moisturizing bar that is one fourth moisturizer. It is also called a beauty bar.
Differentiation- It uses its high moisturizer content to differentiate itself from its competitors.
BCG Matrix- Amul’s Cash Cow Products- Amul Milk, Amul Butter and Amul Cheese
Amul’s Star Products- Amul Ice Cream and Amul Ghee
Amul’s Question Mark Products- Amul Lassi
Amul’s Dog Products – Amul Chocolates, Amul Cookies and Amul Pizza
Ansoff matrix-
Existing Products (Old) New Products(New)
Existing Market (Old) Market Penetration Product Development

(Aggressive) (Nivea Lip
Balm) (Vertical) (New
Variations in Nivea Lip
Balm)
New Markets (New) Market New Industry

Developmen(Merger) (Diversification)
(Acquire and build)
(Nivea Deo)
Porter’s 5 force ( Automobile Industry)
Barriers to Entry- Automobiles depend heavily on consumer trends and tastes. While car
companies do sell a large proportion of vehicles to businesses and car rental companies (fleet
sales), consumer sales is the largest source of revenue. For this reason, taking consumer and
business confidence into account should be a higher priority than considering the regular factors
like earnings growth and debt load .
Threat of Substitutes- The price of gasoline has a large effect on consumers’ decisions to buy
vehicles. Trucks and sport utility vehicles have higher profit margins, but they also guzzle gas
compared to smaller sedans and light trucks. When determining the availability of substitutes you
should also consider time, money, personal preference and convenience in the auto travel
industry. Then decide if one car maker poses a big threat as a substitute.
Competitive Rivalry – Highly competitive industries generally earn low returns because the cost
of competition is high. The auto industry is considered to be an oligopoly (A market condition in
which sellers are so few that the actions of any one of them will materially affect price) which
helps to minimize the effects of price-based competition.
Bargaining Power of Suppliers – The automobile supply business is quite fragmented (there
are many firms). Many suppliers rely on one or two automakers to buy a majority of their
products. If an automaker decided to switch suppliers, it could be devastating to the previous
supplier’s business.
Bargaining Power of Buyers -The bargaining power of automakers are unchallenged.
Consumers may become dissatisfied with many of the products being offered by certain
automakers and began looking for alternatives, namely foreign cars.
Product life cycle (Maruti 800)
First vehicle launched in December 1983.
Growth (1987-1996)
Decline (2002-)
Consumer Behavior
a) Initiator- A person who first suggests the idea of purchasing anything.

(b) Influencer – A person who influences the purchase decision.
(c) Decider- One who takes final purchase decision.
(d) Buyer – One who actually makes purchases.
(e) User – Person who uses the product.
The idea to buy a new model of television might come from college-going son or daughter. A knowledgeable
neighbour or friend might advise on the model of TV the family should buy. The husband might make the final
decision and the children will be seeing the television most.
Product Line Extensions- is when a company creates a new product in same product line of an
existing brand. Example- Colgate Herbal line- Colgate Cibaca Ved Sakti and Colgate Swarna
Vedsakti toothpaste.
Market challenger
·Frontal Attack: Amul adopted this strategy when it launched Amul Kool
and Amul Masti Dahi at a low price with the same level of the quality as that
of other competitors in the market.
Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna” for
the rural people and outshine the other coloured TV players who had a less focus on these areas.
Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to
outshine the other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass
each other. When the coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by
using the punch line “ Nothing official about it”.
Market leader
Coca- cola
communication.
Market nicher
· End user speacilist: Tennispoint All tennis needs are provided by the firm.
Vertical level speacilist: Heavy Transport firms moving heavy machinery and loads.They have knowledge
of alerting police, closing of roads,etc
Customer size speacilist: Bangalore malls like Bangalore central mall
Medium footfall (501-999)- central mall & majestic street
· Product /Product line speacialist: Amul offers a series of closely related products such as milk ,butter
,ghee ,yoghurt ,ice-cream, chocolates,etc
Market follower
·Adapter: Cars like Maruti 800,Alto, Zen, brio, etc are all adapters and they adapt the best qualities from
each other by changing the style of the automobile.
Adapters can soon become leaders as well because they can adapt, learn and make
a better product than the higher competition.
Imitation: The imitation of Tata sky,where Tata sky is the market leader and brought digital TV revolution to
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other products
in the market which are counterfeited.
LALIT R. CHAMAT [ROLL NO: 70]
TOPIC 1: CONSUMER AND CUSTOMER
The customer is the person who buys or purchases the products or the services. (Buyer)
Example: - A person buying milk is a customer; a retailer buying milk to re-sale it is a customer, a company
The consumer is the person who uses the products or the services. (End user)
The customer can be the consumer as well, however not in all cases. Nonetheless, it is the consumer who
will know the genuine quality and the nature of the product or the service since it is the consumer who
consumes it.
Example: - A person drinking milk purchased by some other person is a consumer.
TOPIC 2: NEW PRODUCT DEVELOPMENT (NDP)
Eight Step Process Perfects New Product Development
Step 1: Idea Generation.
Step 2: Screening the Idea.
Step 3: Testing the Concept.
Step 4: Business Analytics.

Step 5: Beta / Marketability Tests.
Step 6: Technicalities + Product Development.
Step 7: Commercialize.
Step 8: Post Launch Review and Perfect Pricing.
TOPIC 3: PRICING STRATEGIES
A pricing strategy is a model or method used to establish the best price for a product or service. Pricing
strategies help you choose prices that maximize profits and shareholder value while considering consumer
and market demand.
Types of Pricing Strategies
1. Competition-Based Pricing
For example, if you sold marketing automation software, and your competitors’ prices ranged from $19.99
per month to $39.99 per month, you would choose a price between those two numbers.
2. Cost-Plus Pricing
For example, the shoes cost $25 to make, and you want to make a $25 profit on each sale. You would set a
price of $50, which is a markup of 100%.
3. Dynamic Pricing
For example, Hotels, airlines, event venues, and utility companies use dynamic pricing by applying
algorithms that consider competitor pricing, demand, and other factors.
4. Premium Pricing
For example, Designer clothes.
Premium unleaded petrol Premium unleaded petrol usually retails at 5p a liter more than regular unleaded.
5. High-Low Pricing
For example, Discounts, clearance sections, year-end sales, seasonal or constantly changing items, such as
clothing, decor, and furniture.
6. Hourly Pricing
For example, consultants, freelancers, contractors, and other individuals or laborers who provide business
services.
7. Skimming Pricing
For example, DVD players, video game consoles, and smartphones

For example, Jio tariff and data rate, Netflix.
9. Divisionary Pricing
For example, Low cost of printer and high cost of ink cartridges.
10. Geographical Pricing
For example, the price of milk in Mumbai and rest of India
11. Bundle pricing
For example, price of haircut and hair color is different from just price of haircut.
12. Price lining
For example, TATA MANZA, Aqua- 4.5L, Aura-5.12L, Aura ABS-5.75L, Aura +-6.20L
13. Everyday low pricing
For example, Walmart to produce and sell goods of competitive or even better quality, at lower costs than
other retailers
TOPIC 4: DISTRIBUTION
1. Intensive Distribution: company sells through as many outlets as possible, so that the consumers
encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations. Example: ITC
[Indian Tobacco Company], Big Bazaar, COCA-COLA, FMCG
2. Exclusive distribution: Is an agreement between a distributor and a manufacturer that the manufacturer
will not sell the product to anyone else and will sell it only to the exclusive distributor.
Example: ONEPLUS, it sells only through AMAZON. NEXA cars, only sold through their exclusive outlets.
JAHUAR [Tata Group] is sell through exclusive authorized dealerships
3. Selective distribution: Is a distribution approach where selective and few outlets are chose through which
the product is made available to the customers
Example: APPLE INC, Branded clothing.
Example- DR. BATRA
TOPIC 5: PROMOTION AND INSIGHTS
· “Airtel” – 'Sab Kuch Try Karo, Fir Sahi Chuno” meaning “Try all, then choose the best
· Insight: Airtel is urging people to try out all the networks as the telco is now pretty confident of its
position in the telecom scene as the provider with the best speed in terms of data connections
TOPIC 6: STDP
(SEGMENTATION, TARGETING, POSITIONING, DIFFERENTIATION)
For Example: NIKE
SEGMENTATION:-
Demographic: - Adults (18-45)55%, Teen (11-18) 35%, Child (1-5) 03%, Teen (5-10) 02%
Gender- 55% male, 45% female
Psychographic: Sports, Gym regulars, Athletes, Fashion
Behavioral: If you have a body, you are an athlete and if you are an athlete,
NIKE’s product make you feel athletic.
Geographic: Urban and Tier-2/3 cities.
Socio-economic: Upper middle and Upper class.
TARGETING: - Professional Athletes.
Size, Reachability, measurability and behavioral variable.
POSITIONING: - Just do it
Nike speak in athletes Heart.
DIFFERNTIATION- Stand out from the crowd,
Lightweight, durable, flexibility.
TOPIC 7: BCG MATRIX

QUESTION MARK
HIGH STAR
MC ARABIA
MC STOPS
CHICKEN BIG MAC
BIG MAC
SPICY MCCRISPY
MCROYALE
DOG
LOW CASH COW
APPLE PIE
MC PASTA
MCNUGGETS
MCHOT DOG
CHEESE BURGER
FRENCH FRIES
HIGH LOW
TOPIC 8: ANSOFF MARTIX
EXAMPLE- STARBUCKS
NEW MARKET DEVELOPMENT DIVERSIFICATION
MARKET
· OPEN STORES ALL OVER · COFFEE MUGS, CHOCOLATES
WORLD
· GROCERY STORES
· PRESENCE IN 1000 CITIES
· ICE CREAM
· BOTTLED DRINK
· MERGERS AND · NEW PRODUCT
ACQUISITIONS
· NEW MARKET
· ALLIANCES
EXISTING MARKET PENETRATION PRODUCT DEVELOPMENT
MARKET
· HOTELS, SCHOOLS · SALADS
· GOURMET COFFEE · CHEESE PLATTER
· INDUSTRIES CAFETERIA · INSTORE MERCHANDISE
· HEAVY ADVERTISEMENT · PRODUCT VARIATION
· SALES PROMOTION · QUALITY IMPROVEMENT
· LOYALTY SCHEME
TOPIC 9: POTER’S 5 FORCE
EXAMPLE- MC DONALDS
1. COMPETITORS RIVALRY (STRONG)
· High Number Of Firms
· High Aggressiveness Of Firm
· Low Switching Costs
· Opponents Advertising Capabilities
2. POWER OF SUPPLIERS ( WEAK)

· Large Number Of Suppliers
· High Overall Supply
3. POWER OF BUYERS (STRONG)
· Choices Allow Customers To Set Out Competitors
· Low Switching Cost
· Large Number Of Providers
· Substitutes
4. TREAT OF SUBSTITUTE (STRONG)
· High Substitute Availability
· High Performance
· Low Switching Cost
5. TREAT OF NEW ENTRANTS (WEAK)
· Moderate Capital Cost
· Brand Loyalty
· No Desi Feeling
TOPIC 10: PRODUCT LIFE CYCLE
EXAMPLE- IPOD
PRODUCT PRICE PLACE PROMOTIO

N
INTRODUCTIO - chick Limited - Brand
N STAGE wheel super awareness
control market campaigns,
(2001) - $399 and big informative
- basic box television
models of 5 electronic adds, think
- battery life = 10h
GB & 10 stores. different, cool
GB mp3 player
- $499 Sign of
- advance Madonna
capability , Tony
- iPod people
Hawk
(cool factor
) (
Launched
in Oct
2001 )
GROWTH - I tunes - Mini small size, Expansio Partnering with

STAGE Music stores n of apple hotels
in 2003 - wide range of color and stores in
lower pricing UK and - I pod offered
- European attractive
progressive - Rs 249 – 299 union in colours
improvemen 2003
- 80 Gb , 120 Gb, 160 - 3rd % 2nd gen
t in the
Gb iPod did face
hardware Market
share= some
- Battery life =30h
- storage rise 72.7 % competition
- added ( rip , - 60 % of its

features mix, burn over
) advertising
- attractive budget for
colour iPod (coolest
gadgets)
- I pod
Nano, I pod
shuffle,
- I pod
touch, I pod
mini 2004
MATURITY Product - 20gb = 299 Online (IPod being
STAGE (2008) differentia- apple best friends)
- 60 gb =399 stores,
CROSSING 54 -tion app store, Add premium
MILLION strategy - Cut price of 1gb personality of
authorize
UNITS d retailers ipod
- Colour - shuffle= 129 cut price
such as
screens ( co brand
- 512 mb = $69 telecom
strategy)
- Video company
- 1 gb = $99
playback
feature
- Camera
- Integration
- High
battery life
DECLINE - IPod Nano Deep discounts Online - Media

STAGE (2013) stores channels
- I pod touch 1gb = $ 99
And - Traditional
- Not revive 512 mb = $ 69 authorize
26 MILLION IN of iPod d retailer campaign
2013 outlet
- I pod touch - Wrap
apple
advertising
stores
- Lifestyle
advertising
campaign
TOPIC 11: CONSUMER BEHAVIOUR
Step One: Need Recognition
Internal- Need new Phone/laptop because my old one is not working.
External- Need new phone/ laptop because of change in technology.

Step Two: Information Search
Commercial sources: advertisements, promotional campaigns, sales people or packaging of a particular

product.
Personal sources: The needs are discussed with family and friends who provided product
recommendations.
Public sources: Radio, newspaper and magazines.
Experiential sources: The own experience of a customer of using a particular brand.
Step Three: Evaluation of Alternatives
Different alternatives that are available in the market along with the product lifecycle
Different brands, comparing prices, different platforms
Step Four: Purchase
Evaluated all facts and has arrived at a logical conclusion, which is either based upon the influence from
marketing campaigns or upon emotional connections or personal experiences or a combination of both.
Step Five: Post Purchase Evaluation
Product performance, satisfaction, durability. Analysing as to whether the product was useful for the
consumer or not. If the product has matched the expectations of the customer, they will serve as a brand
ambassador who can influence other potential consumers, which will increase the customer base of that
particular brand. The same is true for negative experiences; however, it can halt the journey of potential
customers towards the product.
TOPIC 12: PRODUCT LINE EXTENSION
FOOD HOMECARE PERSONAL CARE WATER

BRANDS BRANDS PURIFIER
BRAND
· Annapurna salt · Active Wheel · Aviance Beauty · The Pureit
and Atta detergent Solutions Water Purifier
· Bru coffee · Cif Cream · Axe deodorant

Cleaner and after shaving
· Brooke Bond lotion and soap
· Comfort fabric
· Kissan ketchups, softeners · LEVER Ayush
juices and jams Therapy Ayurveda
· Domex health care and
· Lipton ice tea disinfectant/toilet personal care
cleaner products
· Knorr soups &
noodles · Rin detergents · International
and bleach breeze
· Kwality Wall's
frozen dessert · Sunlight · Brylcreem hair
detergent and color cream and hair gel
· Modern Bread, care
· Clear anti-
· Magnum (ice · Surf Excel dandruff hair products
cream) detergent and
gentle wash · Clinic Plus
shampoo and oil
· Vim dish wash
· Close Up
· Magic – Water toothpaste
Saver
· Dove skin
· Love & Care cleansing & hair care
fabric gentle wash creams and anti-
perspirant deodorants
· Denim shaving
products
· Fair and Lovely,

skin lightening cream
· Hamam
· Indulekha
ayurvedic hair oil
· Lakmé beauty
products and salons
· Lifebuoy soaps
and hand wash range
· Liril 2000 soap
· Lux soap, body

wash and deodorant
· Pears soap, body
wash
· Pepsodent
toothpaste
· Pond's talcs and

creams
· Rexona
· Sunsilk shampoo
· Sure anti-
perspirant
· Vaseline
petroleum jelly, skin
care lotions
· TRESemmé
· TIGI
· Vaseline
· lifebuoy hand
wash and soaps
TOPIC 12: MARKET LEADERS, CHALLENGERS, FOLLOWERS, NICHERS
Market Nicher:
End user specialist: Beardo Beard and Hair growth oil. Lefty’s San Francisco is a left-handed retail store that sells school
supplies, kitchen goods, and gardening tools, and many more things for the lefties.
Geographic specialist: Bombay Shaving Company restricted to the city of Mumbai.
Customer size specialist: Tree of Life (Hallmark) specializes in only Jewish greeting card and gifts and celebrates Jewish faith.
Product specialist: UNTUCKit brand has created a new line of products for people who do not like tucked shirts. It gives you a
feel of a tucked shirt without actually tucking it.
Specific customer specialist: RR engine for aeroplanes, Weber carburettor is a company, only high-end cars like Porsche,
Ferrari, and BMW.
Market challenger:
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the same
level of the quality as that of other competitors in the market.
Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna” for the rural people and
outshine the other coloured TV players who had a less focus on these areas.
Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to outshine the other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well before the Coca
Cola’s mineral water brand.
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each other. When the
coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using the punch line “Nothing official about
it”.
Market leader
Coco- cola, ITC, Aditya Birla group, Reliance.
Market follower
Adapter: Cars like KWID, REDI-GO all adapters and they adapt the best qualities from each other by changing the style of the
automobile.
Imitation: The imitation of Tata sky soon imitated by Videocon, Airtel, Reliance and others.
Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA,
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other products in the market, which
are counterfeited.
Mayurika Bhar PGDM II ROLL:95
Consumer and customer
When a mother buys a packet of diaper for her child
Mother: customer
Child: consumer
Pricing Strategies
Value pricing: Value pricing is mainly used for less-expensive products, for instance for less-expensive
versions of established, brand-name products. Eg. McDonald’s 1€ menu items. Likewise, every car
company offers small, inexpensive models better suited to the strapped consumer’s budget. Even
companies such as Ryanair can be considered to rely on good-value pricing.
Premium pricing: Higher-priced premium airlines such as Singapore Airlines, Emirates, Etihad Airways or
Lufthansa. Flying with these airlines will cost you much more – but customers are willing to spend that
additional price because they will get more value. Value is added in terms of comfort, luxury, premium
service and so further. These additional value-added features increase the service’s value in customers’
eyes – and justify a higher price.
Skimming pricing: Initially prices are kept very high. Later they reduce .Perceived value can be marketing
or branding .Eg: Saffola oil which is promoted to be good for heart .They are mainly associated with
exclusivity (gold plated ceiling at Burj Khalifa), status (Gucci handbag) , technological advancement (Door
cooling refrigerator by LG).
Penetration pricing: Keeps the prices low. Sales in large volumes and make profit. Later they increase the
price. Eg : Jio Initially gave free trial so that people try the new service and once they found the service to
be good then it will take off.
Bundle pricing: 1. Same product: With every 2 dettol handwash, 1 packet free
2. Bundle product of same company: Vimbar and scotch brite
3. different company products: TaTa tea and Kurkure
Surge pricing: Movie theatre tickets: weekday Morning show are low price, weekend evening shows high
price. Uber charge surge prices during rain and bad weather.
Geographical pricing: Nandini milk in Karnataka is more costly than outside that city.
Segmentation pricing: HUL products:soap
Hamum: economy level (very low price)

Lux: popular level (moderate price)
Dove: premium level (high price)
Captive product pricing: Kodak camera with a free Kodak film for a new buyer. But after that I consumer
has to buy the Kodak film every time. So with the selling of one camera Kodak is generating opportunity
for the film to be sold.
Freemium pricing: Initially provides free service then apply charges. Eg. Voot , zee5
Psychological pricing: Bata uses the psychology of pricing number that ends with 9 such as 299.00 ,
499.00
Distribution
Tier 1: Manufacture-consumer: eg. Bata shoes, Raymonds, Vimal, Tyre manufacturer like MRF, Good
year
Tier 2: Manufacture-retailer-consumer: eg. Brooke bond tea. Manufacturer of tea sell their goods to retail
outlets with the help of their salesman who travel all over the country.
Tier 3: Manufacture-wholeseller/distributor-retailer-consumer: eg. HUL poducts
Commercials for Hindustan Lever's (HUL's) Liril soap, always has been its jingle. Think Liril and the next
thing that comes rushing to mind is its trademark 'La, lalala, la, la, la'. This tune is closely followed by the
visual of a girl frolicking under a waterfall.
The Liril Girl, conceived in 1974 by ad agency Lintas (now Lowe Lintas & Partners), and discontinued in
2009, is quite simply an audio-visual treat. A girl having fun under a waterfall with a Liril soap for
company hardly changed during the campaign's 35-year run. In commercial after commercial, the Liril Girl
- from the original model Karen Lunel to actors Pooja Batra, Preity Zinta and Deepika Padukone - could be
seen playing in the water, diving, jumping and swimming under the waterfall. The voice-over simply
amplifies the message of freshness, the attribute of the soap.
In the Liril Girl's case, she was vivacious with bright eyes and an infectious smile. She could swim, dance
and have fun with no fear of the camera or the world at large.
Lintas commissioned a consumer survey to find out what women really wanted out of a freshness soap.
The survey led him to an interesting insight: The Indian housewife, the target audience, had time to herself
only during her 10 to 15-minute daily bath, day-dreaming about how her favourite Bollywood actor.
"In other words," "She wanted to escape. And her shower in the bathroom was symbolic of this, where she
suspended her struggles as a housewife for some time and simply enjoyed her bath." To make it real,
Padamsee, who was creative director at Lintas, came up with a metaphor for the bathroom shower - a
waterfall.
The team would eventually shoot in the waterfalls in Khandala in Maharashtra for some shots, and in
Kodaikanal, Tamil Nadu, for others. As a result, the Pambar Falls in Kodaikanal bills itself as the Liril
Falls to this day to attract tourists.
STDP
Maggie(Nestle):
Segmentattion: Geographic :urban, semi urban
Psychographic: lifestyle and eating habits of Indian consumer
Target audience: busy life schedule, kids, youths and working women
Positioning: positioned as to get fast relief from hunger. Positioned their products with slogans: “2 min
noodles” .
Yippee Noodles(ITC Ltd.): Sunfeast yippee
Segmentattion: geography: urban , semi urban, rural market penetration through ITC distribution channel
Psychographic: health conscious
Demographic: youngsters
Target audience: working individuals , mothers as they want healthy food for their children
Positioning: No lumping even after 30 min of cooking . available in round cakes to fit in the cooking
vessels
Atta Noodles(Patanjali):
Segmentattion: geography: pan India
Target audience: all generations both young and old health conscious people in India, family members
Positioning: Swadeshi noodles- healthy indegineous, ayurvedic. Cheaper and healthier with higher % of
wheat and are made from rice bran oil and taste maker made of dehydrated vegetables and ayurvedic
ingredients from hydrabad.
Knor soupy Noodles(Unilever)
Segmentattion: geography: urban society
Demography: married and with children, age 10+, kids of early teens, middle income group
Psychographic: busy lifestyle, ambitious, achievers, extrovert, trendy, confidant people
Target audience: mainly children market
Positioning: chineese variant of instant noodles, spicy and slurpy, soupy noodles- noodles with soup,
nutritious hot soup giving a heavy feeling to curb in between meals hunger pangs, “tummy bhi khush ,
mummy bhi khush”
BCG Matrix (Parle)
Question: Chox, nimkin kreams gold, parle 20-20, Monaco jeera
Star: parle G
Cash cow: crack jack, parle marie, hide and seek
Dog: sixer, jeffs, must bites must chips, must stix
Ansoff Matrix(blackberry)
Product development: Re innovate Blackberry device design, introduce phones that are suitable for android
platforms
Product penetration: Increase sales of Z and Q series phones among the youth & corporate, and increase
service after selling their product
Market development: Increase sales of curve series phone by re-introducing them in new market
Diversification: introduce new tablets and mobile app for new market, launch blackberry app for
android/ios phns, enter into customer electronics such as bluetooth device, handsfree etc.
Porter’s 5 forces (coca cola)
Bargaining power of suppliers: the bargaining power of suppliers for coca cola is very weak. It is because
the no. of suppliers is high and switching cost for coca cola is very low. While coca cola can easily switch
from one supplier to another it is not same for the supplier. Moreover forward integration is difficult.
Bargaining power of buyers: this is low in case of coca cola. Individual customer buy in small vol.
backward integration is not possible for both individual customer or bulk retailer. If a retailer gains a
bargaining power then it has to from a bulk retailer as it buys at a large volume. Still overall the customer
bargaining power is weak.
Threats from new entrants: there are several barriers in beverage industry such as technical barrier – the
receipe is top secret. Financial barrier- coca cola regularly invest in new research like “zero light” , Black
etc. so raising capital and getting skilled human resource are the challenges of the new entrants.
Threat of substitutes: main substitute are pepsi, fruit juices, thumbs up, and other hot and cold drinks.the
no. of substitute is high. Moreover quality of these substitutes are quite good. So threat from substitute is
quite high.
Competitive rivalry between the existing players: pepsi and coca cola are two major players, pespsi is a
strong existing player
Product life cycle
Consumer Behaviour
The idea to buy a new model of television might come from college-going son or daughter. A
knowledgeable neighbour or friend might advise on the model of TV the family should buy. The husband
might make the final decision and the children will be seeing the television most.
The buying process begins with the discovery and recognition of an unsatisfied need or want. It becomes a
drive. Consumer begins a search for information. This search gives rise to various decisions and finally the
purchaser evaluates these alternatives and finally the purchase decision is made. Then the buyer evaluates
the purchase and decides whether he is satisfied or not.
1. Need Recognition:
Buying process begins when a person begins to feel that a certain need or desire has arisen. The need may
be activated by internal or external factors. The intensity of the want will indicate the speed with which a
person will move to fulfil the want. The buyer will postpone the less important motives. Marketing
management should offer appropriate cues to promote the sale of the product.
Aroused needs can be satisfied promptly when the desired product is not only known but also easily
available. But when it is not clear what type or brand of the product can offer the best satisfaction, the
person will have to search for information. This may relate to the brand, location and the manner of
obtaining the product.
Consumers can use many sources, e.g., family, friends, neighbours, opinion leaders, and acquaintances.
Marketers also provide relevant information through salesmen, advertisers, dealers, packaging, sales
promotion and window-displaying. Mass media like newspapers, radio and television provide information.
Marketers are expected to provide reliable, up-to-date and adequate information regarding their products
and services. This is the pressing demand of consumerism.
3. Evaluation Alternatives:
This is the critical stage in the process of buying.
There are several important elements in the process of evaluation:
(a) A product is viewed as a bundle of attributes. These attributes or features are used for evaluating
alternative brands. For example, a product like tea has certain common attributes such as taste, flavour,
strength, aroma, colour, number of cups per packet, and price.
(b) Information cues or hints about a set of characteristics of the product in brands such as quality, price,
distinctiveness availability, etc.
(c) Brand images and brand concepts can help in the evaluation of alternatives.
(d) In order to reduce the number of alternatives, some consumers may consider more critical attributes and
mention the level for those attributes.
(e) Occasionally, consumers may use an evaluation process permitting trade-offs among different
alternatives.
The purchase decision may be influenced by attitudes of spouse, friends and relatives, cost of the product,
benefits of the product, etc. Purchase decision includes decisions with regard to product/brand, dealer,
quantity and quality, timing, and payment.
5. Post-Purchase Behaviour:
Post-purchase behaviour refers to the behaviour of the customer after the purchase and it depends upon his
experience of using the product and level of satisfaction. A satisfied customer may make repeat purchases.
If the customer is not satisfied he may not buy the product again and may talk bad about the product to his
friends, colleagues and relatives. In the case of consumer durables like air-conditioner, television, water
purifier, after-sales service is important to achieve high level of customer satisfaction.
Output:
Output is the end-result of the inputs of consumer behaviour. It emerges after these inputs are duly
processed by the consumer. Output is composed of purchase and post-purchase behaviour.
Purchase:
Purchase is a consumer commitment for a product. It is the terminal stage in the buying decision process
that completes a transaction. It occurs either as a trial and/or adoption. If a consumer is buying something
for the first time then from the behaviour viewpoint, it may be regarded as a trial. This trial enables him to
accumulate experience about the product purchased.
If this experience is positive in terms of the satisfaction derived, then repeat purchases may offer, otherwise
not. For example, when a new brand of bathing soap is introduced in the market, the consumer may buy it
for the first time as a trial. However, repeat purchases will occur only when he is satisfied with its
performance.
But the possibility of a trial purchase is not available in all cases. In the case of consumer durables such as
scooters, refrigerators and the like, a trial is not possible, because once a product is purchased, it has to be
adopted and repeatedly used. Adoption means a consumer decision to commit to a full or further use of the
product.
Product lines: Food, cigarette, lifestyle, edu and stationary
Horizontal extension– in clothing Wills lifestyle when got added it is horizontal extension
Verticle extension-under cigarette –glod flake, classic, india kings are added
Market leaders ,challengers, followers, nichers
Market Leader
Position defence: HUL increased its ad-spend on Clinic Plus and Sun silk shampoos and gave heavy
promotions through price reduction.
Flanking defence: HUL successfully nourished its first Rs.100 crore Indian-made brand Vim in a
competitive dish wash market. It was able to check the attack of competitors through product innovation,
attractive public campaigns, road shows and public relations.
Pre-emptive defence: Titan launched more brands and sub-brands to corner the market share of HMT
watches in the early 1990s.
Counter offensive defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS decided
to expand its coverage to Ceat tyre’s hub in the north and west of India through innovative campaigns like
road rallies, road shows and attractive public campaigns.
Mobile defence: XIOMI entering into US market after capturing many other country markets
Contraction defence: HUL decided to concentrate on its core business areas, that is, soaps and detergents,
and has emerged as the clear leader in the toilet industry.
Expanding market strategy: Market leaders can improve their profitability by increasing their market
shares, like HUL, Procter and Gamble, McDonald’s and Titan
Market challenger
Frontal Attack: Amul adopted this
strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the
Flank Attack: L.G has successfully
made use of this strategy by introducing the colour tv “ Sampoorna” for the
rural people and outshine the other coloured TV players who had a less focus on
these areas.
Encirclement Attack: The FMCG industry
applies this attack more aggressively with the intention to outshine the other.
Bypass Attack: Pepsi adopted this
strategy when it launched its mineral water brand “Aquafina” very well before
Guerrilla Warfare: The Pepsi and Coca-Cola
follow this strategy aggressively with the intention to harass each other. When
the coca-cola was the official partner of the world cup, the Pepsi
Market Nicher:
End user specialist: Beardo Beard and Hair
growth oil. This is specifically for those men who want a long beard. Also,
another example is Lefty’s San Francisco is a left-handed retail store that
sells school supplies, kitchen goods, and gardening tools, and many more things
for the lefties.
Geographic specialist: Bombay Shaving company
is an example of geographic specialist. It’s production and target audience was
initially strictly restricted to the city of Mumbai.

Customer size specialist: Tree of Life(Hallmark)
specializes in only jewish greeting card and gifts and celebrates jewish faith.
Product specialist: UNTUCKit brand has
created a new line of products for people who do not like tucked shirts. It
Market followers
Adapters :DishTV came in 2004 with A dish concept and then Tata sky entered in market with the same
concept adapting it from its competition in 2006 and became the market leader
Immitators: Female footwear shops that almost try to copy the big brands design and sell in the
market.Local boutiques and lehnga shops in chandini chowk copying or imitating sabhyasachi lehnga’s
designs.
Cloners: Colgate coming as coolgate in market. bisleri coming as bilseri
Counterfieters: Mi earphones sold as original as the authentic MI ones in some black market.
ISHANI MAHESHWARI
ROLL NO - 92
MARKETING ASSIGNMENT
CONSUMER AND CUSTOMER
There is significant (subtle) difference between consumer and customer.
Put simply, the one who buys the product is the customer.
The one who uses (or consumes) it, is the consumer.
Customers and consumers are considered to be important targets for marketers to generate sales and
revenue. It is the customer who makes the purchase but more often influenced by the consumer.
EXAMPLE -
Say the Mom and her baby, roaming around a shopping mall, stop near the baby diapers section. Who
do you think is the customer here and who is the consumer? The mother is the customer for the baby
diapers, but her baby is the consumer.
An individual goes to a shop and buys a wrist watch for his friend's birthday. The friend who buys the
watch is the customer as he has done the transaction with the seller. Once he gives the gift to his
friend, it is the friend who will wear the watch, and hence is the end consumer.
Lego’s customers are children, but shoppers are their parents. Lego used this difference to their
advantage to create two separate user journeys, each covering touch points characteristic for that
particular group. This helped Lego create a more engaging environment and user experience for both
groups.
If you buy a smartphone for yourself, you are both the customer and the consumer.
PORTER’S FIVE FORCES MODEL
Porter’s five forces analysis for the soft drinks industry.
Rivalry amongst existing firms: Factors such as size and scale of competitors, costs involved, the
potential of the industry, etc. greatly affect the dynamics of competition in the industry. If an industry is
a high growth industry and all competitors have enough pie for themselves, they would rather focus on
the products instead of handling the competition. But for a slow-growing industry where the customers
are limited, rivalry may be fierce. 34 There are a handful of players in the soft drinks industry creating a
high level of competition in the market. Firms spend heavily on sales and promotions to differentiate
themselves and to reach each and every customer in the best way possible. Hence, the rivalry in the
beverages sector is HIGH
Bargaining power of customers: Buyers or customers influence the industry by forcing down the
prices or demanding higher quality, directly affecting the profitability of the operating companies. By
bargaining power, we mean that they try to manipulate the products and prices as per their choices
because they are in a stronger and better position. When can customers have higher bargaining powers?
Consider a situation where customers are flooded with choices for a particular product. It is completely
up to them which product to choose. They will readily switch from one product to another if the prices
rise or the quality drops. So producers are constantly in competition with each other to produce the best
at the lowest prices. Consider the case of Jio. Jio’s budget-friendly offerings actually put pressure on
other providers. Mobile Number Portability or MNP had previously eased out the switching process but
the options were limited and the offerings were similar. Customers had little choice for themselves.
Now, the scenario is completely different. In the beverages industry too, the switching cost is low and
customers can shift from one product to another without hesitation. Hence the bargaining power of
customers here is HIGH.
Bargaining power of suppliers: Suppliers are the ones that supply material (Raw material), or
products to be further used for making other products (like camera sensors used in the making of
mobiles). A supplier in a generic sense contributes to the making of a product or service. Suppliers can
exert power by increasing the prices of their offerings or reducing the quality. Suppliers can get
powerful if: The industry is dominated by a few suppliers High switching costs involved In the
beverages industry, suppliers include bottling manufacturers or packaging suppliers. It is easy to switch
between these suppliers due to the abundance of options hence reducing the bargaining power.
Additionally, many companies may involve in backward integration i.e. owing their own supplier
network. Thus, overall the Bargaining power of suppliers is low, in this case.
Threat of new Entrants: When an industry has limited barriers to entry - such as low investment,
favorable policies, abundant resources, less competition - new firms may keep foraying into the
business. Every time a new firm enters the competition, the profitability of the existing players takes a
hit. Hence, existing firms constantly try to create barriers, by holding on to resources or lobbying with
the government and thus protecting themselves. In the soft drinks industry, existing companies have
already carried out massive expenditures and possess 35 economies of scale. In order to enter in the
beverages industry, an ample amount of money is required for the sake of manufacturing, bottling,
distribution, and storage. The major difficulties when starting a beverage business is of distribution
channels; well-known brands are retaining many of the main distribution channels including
supermarkets, restaurants and gas stations, etc. Thus, the threat of new entrants here is moderate. You
will often find existing players launching new products in the category, rather than completely new
brands entering the market.
Threat of substitutes Substitutes are alternatives to your products and services. This should not be
confused with competitors’ products. For example, iPhone X and Samsung s10 are competitors. But
their substitutes can be tablets, that limit the potential of smartphones in general. Thus, substitutes are
for your products (not the company), and they belong to different categories altogether. Substitutes
place a cap on the prices the firm can change. The usual substitutes for the carbonated beverages are
water, tea, sports drinks and many more. But most of the customers do not switch between categories,
each has its own purpose. Overall the threat of substitutes is low for the soft drink beverage industry.
PRODUCT LIFE CYCLE
This example shows how the yoghurt product category has moved through the product life cycle by
remixing elements of the marketing mix. Examples of stages and how PLC evolved:
Introduction: • Yoghurt available in health food stores • Functional and plain packaging • Promoted as a
health food
Growth: • Yogurt now available in supermarket chiller cabinets • Packaging gets a makeover • New
flavors introduced; Strawberry and Vanilla
Maturity: • Product re-invented with added fruit, added muesli, added chocolate! • Packaging changes
into different shapes and sizes • Promoted as a fun snack and a luxury treat
Decline: • Ad campaign evoking brand association through remembrance and fondness • Brand
available at select retail megastores only A tip is to review customer feedback continuously, to ensure
your products don’t reach the end of their shelf life, carry out regular customer surveys. Get feedback
and find out what works, what doesn’t and why.
PRICING STRATEGIES
Branded unleaded petrol is sold at a higher price than regular unleaded petrol. The consumer never gets to
test if the branded is better, yet he buys the branded offering thinking if it’s expensive, it must be better.
affordable price of $299. Once the company acquired a good market share, it started launching its products
at a premium. The recent phones from Oneplus are priced in the range of $500-$700.
Aldi uses this no-frills economy pricing strategy where it operates small stores, only sells products which
have a good demand, keep products in their original shipping containers, and even charges the customers if
they ask for carry-bags.

Smartphones (both iPhones and Android) are introduced in the market at a higher price, but the price is
reduced as the time passes.
A perfect example of a company adopting a predatory pricing strategy is Amazon which, in 2013, offered
books at a price less than the cost price and even shipped it for free just to win over the traditional brick-
and-mortar competitors.
PROMOTION - ICICI life insurance (Bande ache hai)
The brand building in life insurance — a category that's little over a decade old — with almost 24 players is
further compounded by the multiple options like protection, retirement and child welfare to name just a few.
Tying all this in with an overarching corporate theme makes it a fairly complicated and a knotty exercise.
Shares Manish Dubey, SVP and head marketing, ICICI Prudential, "The brand, in this category, is not only
built top-down through advertising and communication. It is also built bottom up through multiple on-ground
customer experience moments. These experiences are hard to standardise and regulate."
the campaign team decided to build an emotional relevance for the customer by putting the simple acts of
goodness of the family man as the pivot (in the context of protection). Very similar to the role life insurance
plays.
We were looking for the magical intersection point where the customer life-truths met and resonated with
the role of the brand, and found this in the understated everyday caring role of the family man." The brief to
Lowe Lintas, the creative agency, was straightforward. Shares Amer Jaleel, national creative director, Lowe
Lintas, "We were told that ICICI Prudential wants to be a brand that men love. As simple as that."
Thus the communication had to be all about celebrating men. These are men who do not make a big deal or
thump their chest to constantly reiterate that they care. They just do things and don't even let others know.
DISTRIBUTION STRATEGY
Distribution strategy of a firm is a plan created by the management of a manufacturing business that specifies
how the firm wishes to transfer its products to intermediaries, retailers and end consumers. Maruti Suzuki
has two manufacturing facilities in India. Both manufacturing facilities have a combined production capacity
of 14,50,000 vehicles annually. Maruti has a strong dealer network. Infact it was one of the very first
companies in the country to understand the importance of after sales service in high involvement products
like cars. It has the largest distribution & Service network comprising of over 400 sales showrooms, over
600 dealer workshops, and 1900 Authorized Service Stations spanning across over 1190 cities unparalleled
in the country. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India. Most
of the service stations are managed on franchise basis where Maruti trains the local staff. To increase their
reach to rural India, where setting up a complete dealership was very difficult, they opened extension counters
which are operated by some dealer in the city thereby ensuring increased customer touch points without
risking the viability of the dealers.
SEGMENTATION,TARGETING AND POSITIONING- TITAN
Titan first launched its quartz range with heavy advertising. The first advertisement described the titan quartz
as the international watch that could be bought in Indian rupees. Later campaigns also positioned the watch
as a gift item, with advertisements saying: The next time your husband wants to buy you a saree ask him for
a Titan watch. This campaign was an enormous success.
Music became an essential part of Titan’s advertisements. The advertisements featured two or more people-
parents, spouses, siblings coming for specific occasions. In the early 2000s, Titan realized it would have to
use other ways to motivate people to buy their watches.
Segmentation became an important issue as their operations expanded. Titan believed that different brands
have to be created for the different segments. Titan has segmented the watch market and identified clearly
the needs of each group. Titan has segmented the market on the basis of the following variables:
Demographic (age and social class), Psycho graphic (lifestyle and personality), Behavioural (benefits and
occasions, Geographical (region), Targeting segments and User positioning. After carrying out an in depth
market study, Titan identified three different specific market segments for its watches. The segments were
arrived at using benefit and income level as the bases.
· The first consisted of the high income/ elite consumers who were buying a watch as a
fashion accessory. They were also willing to buy a watch on impulse. The price tag did
not matter to this segment.
· The next segmented consisted of consumers who preferred some fashion in their watches
but to them price did matter.
· The third segment consisted of the lower income consumers who saw a watch mainly as
a time keeping device and bought mainly on the basis of price.
FasTrack, Raga, Sonata, Xylys, Nebula and Flip are sub-brands within Titan that are aimed at the
youth, men, women and children Sonata is the value for money watch brand from Titan industries. It is
targeted at consumers seeking durability and value with a clear positioning of “No compromise watch”.
FasTrack was positioned as a youth brand. The young Indian racing driver Narain Karthikeyan was
the brand ambassador. The company used focused distribution supplementing its watch outlets with youth
focused outlets like music stores and internet café’s for FasTrack.
Titan targeted its Raga watches at women in the premium segment which gave them the feeling of
intimacy. The company realized that more women were wearing watches for functions. It offered slimmed
down and sleeker watches for women. The Raga range remained for more special reasons, like marriages
or parties.
Xylys comes from the House of Titan, is targeting a new generation of achievers who are looking for
symbols to reflect their lifestyle, attitude, moods and beliefs.
Nebula-precious jewellery watches from Titan. It is a collection of intricately carved designs for
women inspired by floral patterns and these watches are engraved with beautiful patterns in gold and precious
stones. This is for the premium segment.
Titan Edge and Titan Steel are the mainstream Titan products which enhance the brands image of
leadership, innovation and pride. Titan is considered to have one of the successful segmentation and
targeting.
Titan adopted a strategy of focus. Titan tries to achieve competitive advantage by optimizing its
strategy in the different market segments.
BCG MATRIX- AMUL
CASH COWS:
There are three products of Amul that fall under cash cow category, the first being Amul Milk and the second being
Amul Butter and third is Amul Cheese.
Owing to the limited chances of industry growth, Amul is introducing a number of new product variations
for different customer segments so as to maintain its market leadership.
For Example: Apart from its basic version of Butter and Milk, Amul also launched, Amul Butter Lite, Amul
Tazza Milk and Amul Gold Milk to target customers who are more health conscious.
STARS:
Amul Ice cream and Amul Ghee are two products that can be considered as Stars of the company. These are
the products which have a high market share and holds a good potential to grow in the future as well.
QUESTION MARK:
Amul lassi has been marketed with the aim to increase the market share and compete with the other beverages
available to the market.
Considering the increasing interest and demand for healthy products and beverages, the healthy milk from
Amul poses a great potential to grow in the near future with a condition that it is marketed well.
DOGS:
Dogs are those products that have low growth or market share and have a very limited chance of growing
into a profitable business unit for the company.
Amul Chocolates, Amul Cookies, and Amul Pizza are few products which can be considered as Dogs for
Amul.
Due to the heavy competition and limited innovation that these product categories face, it’s becoming
difficult for Amul to gain market share for these products and make them a viable revenue generator.
PRODUCT LINE- PEPSICO
MARKET CHALLENGER
on these areas.
MARKET LEADER
Cocoa- cola
communication.
MARKET NICHER
Ferrari
MARKET FOLLOWER
· Cloning: if you get watches made from Rado as Rodo, or bags of Gucci, as GUCCA, than that’s
cloning.
In order to gain momentum with the increasing demand of diesel powered cars in India, Maruti Suzuki is
planning to introduce two new diesel powered models by late 2014 and this time you won’t see the tried and
tested Fiat sourced 1.3-litre Multijet turbo diesel engine powering them. The Japanese automaker, Suzuki is
said to be developing two new diesel engines for the Indian market. India’s largest passenger carmaker will
be introducing 1.0-litre and 1.4-litre diesel engines, getting rid of the Italian carmaker’s 1.3-litre Multijet
diesel mill.
This move can result in reducing manufacturing costs and can help the carmaker to price the products
aggressively. Maruti Suzuki has tasted tremendous success in the Indian market with the Fiat sourced Multijet
diesel engine powering the Ritz, Swift, DZire, Ertiga and SX4. The Italian carmaker’s technology has helped
Maruti Suzuki find itself amongst the top selling cars in the Indian car market consistently every month. The
diesel engines under development by the Japanese automaker can help the company to target a range of
segments.
The small 1.0-litre diesel engine can power compact hatchbacks like the WagonR and A-Star, while the
bigger 1.4-litre diesel motor can be used in the Swift, DZire, Ertiga as well as the upcoming compact SUV
based on the XA-Alpha concept. Maruti is readying up a diesel engine plant in Gurgaon with an investment
of around Rs. 100 crores and an annual production capacity of three lakh units. The agreement with Fiat says
supply of one lakh diesel engines to Maruti for three years starting from 2012, which means beyond 2015,
Maruti Suzuki might not get diesel engines from Fiat.
ANSOFF MATRIX
The Ansoff
Matrix, also called the Product/Market Expansion Grid, is a tool used by firms
to analyze and plan their strategies for growth. The matrix shows four
strategies that can be used to help a firm grow and also analyzes the risk
associated with each strategy. The four strategies of the Ansoff Matrix are:
·
Market Penetration: It focuses on increasing sales of existing
products to an existing market.
Product Development: It focuses on introducing new products to an
existing market.
Market Development: Its strategy focuses on entering a new market
using existing products.
Diversification: It focuses on entering
a new market with the introduction of new products.
Market
Penetration: pushing for classic 350, 500, thunderbird 350, 500 in the existing
market of India. The company commands 6% market share in two wheeler segment of
India.
Product
Development: focus on newer designs, chassis changes, colour modifications,
custom finish options, ABS additions to give more buying options to the
customers, along with an entire range of accessories which includes jackets,
gloves, helmets, etc.
Market
Development: the exports to US, UK, Egypt, Philippines, were first strengthened
by means of Bullet model and Classic model and then other models were slowly
rolled out on demand basis in international markets.
Diversification:
by introducing more motorcycles in various segments such as Thunderbird 350,
Thunderbird 500, Classic 350, Classic 500, Himalayan, Continental GT 535,
Continental GT 650, Interceptor 650 they have diversified in different
motorcycle categories.
CONSUMER BEHAVIOUR
5. Purchase (Buyer)
· Problem Recognition: The customer must have a reason to believe what they want, where
E.g.: The customer may start searching online across various shopping websites also might
have a look at showrooms to gather information.
· Evaluation of alternatives: Customers want to ensure that they have done enough
research prior to making the purchase.
E.g.: Customer will now compare all the alternatives which are available based on
· Purchase decision: After exploring alternatives they are deciding whether to move
forward with the purchase or not.
E.g. After examining the alternatives the customer has decided to buy a laptop that suits
his/her needs.
E.g.: The purchase process is simple/complicated what the available payment options are, is
the option of EMI available.
Mitali Palawat (96)
CONSUMER & CUSTOMER
The person who buys the goods or services from a seller is known as the Customer. The person who uses
the goods or services is known as a Consumer. Ex- Consumer in the case of huggies diaper will be the baby
who will be consuming the product. Customer will be the parents who will be buying the product.
PRICING STRATEGIES
Penetration pricing: Jio gave free mobile phones in order to grab or acquire maximum consumers in a given
market. By keeping the product price low, as their introductory offer it is a way of introducing themselves
in the market and creating a consumer base.
Premium pricing: Telsa, have higher prices because they are offering products like autonomous cars they
are more unique than others in the market.
Skimming pricing: prices of the innovative products higher during their initial release, because the
company knows steeper prices won’t decrease customer demand for the latest gadgets, and they benefit
from the higher short-term profit margins. Ex- 8k TV when only 4k TV exists.
Psychological pricing: Putting a price of rs 199 instead of rs 200 because psychologically one sees the first
value and have less attention to the last one.
Bundle pricing: Mcdonalds happy meal plan
Geographical pricing: in the gasoline industry. This practice entails oil companies charging gas station
owners different prices for the same gasoline depending on where their stations are located.
Promotional pricing: giving offers and dicounts like “Buy one get one” campaign.
Captive pricing: Razor of dollar shave club
Surge pricing: Ola, uber, there prices are dependent on demand and supply
Competitive pricing: pepsi & coca cola
DISTRIBUTION
Direct distribution: Direct channels allow the customer to buy goods directly from the manufacturer, while.
Indirect distribution: an indirect channel moves the product through other distribution channels to get to the
consumer. Firms that use direct distribution require their own logistics teams and transport vehicles.
Intensive distribution: Cadbury, the sale takes from the largest retailers like Big Bazaar, Spencers to the
smallest of retail stores at every nook and corner in India, thus deeply penetrated.
Selective distribution: for specific geographical locations, some high end products like Dolce &Gabana
Exclusive distribution: which is in few cities like Zara, chanel, Gucci
PROMOTION INSIGHTS
• The Liril ad campaign (a HUL product) was to escape from daily work and feel free and relax a
feeling of freedom.
• The honey bunny song of Idea, a mobile network of Aditya Birla group didn’t get the all India
license but after that they got. The major insight was – not local, national.
• Airtel, already a market leader but to continue as a leader they have to continue their growth, so
they thought that data will be the new thing. So it is a perfect case of marketing segmentation. They had the
campaign- jo tera hai wo mera hai, jo mera hai wo tera.
STPD (Cadbury)
Segmentation
Demographic Segmentation: Income:
Basic products: dairy milk, dairy milk shots
Premium products: dairy milk silk, dairy milk glow
Behavioural segmentation: occasionally celebrating as a dessert after dinner as a dessert
Targeting: mass targeting, as it targets everyone
Positioning: in the initial stage it positioned itself as special carefree, real moments chocolate. Then
afterwards, the tagline “Meethe mein kuch meetha ho jaaye”, positions dairy milk as a dessert.
Differentiating: differentiated itself on the basis of the taste
Cadbury has about 35% of the market share in the Indian chocolate market.
Another example is of Horlicks
Segmentation: demographic segmentation:
Junior Horlicks: for pre-school children
Horlicks regular: for general use
Women’s Horlicks: for pregnant women
Horlicks lite: for health conscious adults and for diabetic people
Geographic segmentation: in northen part of the country, it has a huge demand as a white drink whereas
chocolate Horlicks is very popular in the southern part of the country.
Positioning: initially introduced itself as both an additive and substitute milk and positioned itself as a
multinational supplement for kids.
PORTER’S 5 FORCES (example of an airline industry)
1) Threat of new entrants: in airline industry it’s low to medium. Because it takes a huge amount of
investment to start an airline company. Moreover the company needs licenses, insurance, distribution
channels that are not easy to obtain. And, also the existing players have built up a large base of experience
over the years by cutting costs and increasing service levels.
2) Bargaining power of suppliers: in the airline industry it is high. The major inputs are fuel and
aircrafts. These are very much affected by external environment over which they have no or little control.
Because the price of the aviation fuel is subject to the fluctuations in the global market for oil.
3) Bargaining power of buyers: it is high as customers are able to check the prices of different airline
companies through many online & compare. Therefore, there is no high brand loyalty.
4) Threat of substitute products: in an airline industry people are looking for more travel options and
there are many alternatives to it like trains, cars etc.
5) Rivalry among existing competitors: it has high competition because of various reasons like low
cost carriers, tight regulation of the industry; many players in the industry are of the same size.
BCG MATRIX (of Nestle)
Stars: Nescafe coffee, ceralac
Question marks: Smarties, Nesquik
Cash cows: Maggi noodles, Kitkat
Dogs: Nestea, Milkybar, Nestle dahi
ANS OFF MATRIX
Existing Products (Old) New Products(New)
Existing Market (Old) Market Penetration (Aggressive) (dairy milk fruit n nut) Product Development
(Vertical) (New Variations like Bournville)
New Markets (New) Market Developmen(Merger)
(eclairs) New Industry relatrd diversification (Acquire and build) (gems)
Market penetration: dairy milk- bubbly, fruit n nut, perk, bournvita
Market development: candies like eclairs
Product development: bournville
Related diversification: gems
PRODUCT LIFE CYCLE (Maggi)
Introduction stage:
• High-failure Rates
• No Competition
• Frequent product and Modification
• Limited Distribution
• High-marketing and product costs
Growth Stage
Maturity Stage
• The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had
four variants: two chicken options and two vegetarian.
Decline Stage
• If no product innovation brought

Elimination of all nonessential marketing expenses
Product line extension: A product line extension strategy is an approach to developing new products for
your existing customers or for prospects who do not currently buy from you. Extending a product line
involves adding new features to existing products, rather than developing completely new products. Ex-
fair & lovely face wash has different range of face wash for different people.
Consumer behaviour
5. Purchase (Buyer)
Ex- my grandmother recognized the need to buy a mobile phone (she is the initiator) then my sister did the
information search that which phone will be best suited for her (gatekeeper) my mother acted as influencer
by saying that she should buy this phone because of these features (influencer) the decision maker was my
grandmother herself. Buyer in this case was my sister who got it purchased from the shop. The end user is
my grandmother.
MARKET NICHER
Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production
and target audience was initially strictly restricted to the city of Mumbai.
MARKET CHALLENGER
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low
outshine the other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well
using the punch line, “Nothing official about it”.
MARKET LEADER
Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk shampoos and
gave heavy promotions through price reduction.
Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore Indian-
Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the market share
of HMT watches in the early 1990s.
Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS
Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound and
defence strategies.
Contraction Defence: For example, HUL decided to concentrate on its core business areas, that is, soaps
and detergents, and has emerged as the clear leader in
MARKET FOLLOWER
Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from
each other by changing the style of the automobile. Adapters can soon become leaders as well because they
can adapt, learn and make a better product than the higher competition.
Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution
to India but was soon imitated by Videocon, Airtel, Reliance and others.
KUSHA SINGH, ROLL No. 115
STDP ( CAR – SEDAN )

Segmentation Targeting Differentiation Positioning
Volkswagen Mass market , Young Focusing on large Premium,

Vento demographic executives, market, upper & Innovative
segmentation- businessman, higher class, Made brand, Safety
Age urban family, in India leader, Biggest
linkedin’s Programme,vehicle Automobile
broad reach safety, fuel grand ,
efficiency , “ when experiential
power meets plays” positioning
Mercedes Income Targeted On road service, TAGLINE “

Benz C-Class segmentation, people aging panoramic sunroof, The Best or
higher class between 30-45 concentration alert Nothing “
affordibility years
Maruti Dzire Geographic Targeted Highly fuel Tagline “

Segmentation people living in efficient, Desire Again “
semi urban & technologically It not only
urban areas advanced K series encourages
engines consumers to
think
Honda City It tries to cater Consumers Distinctive image Tagline “ The

luxury & who have the due to strong brand, power of
premium will to have unique comfort & dreams “
consumers in premium car at safety Capability of
semi urban & price of luxury dreaming,
urban areas car imagining &
innovate
PRODUCT LIFE CYCLE – MARUTI 800
1. Introduction Phase ( 1983 – 1986 )

1st car imported & sold in 1983, huge gap between demand & supply, 3 years to clear the resulting
waiting list, sales - 48000
2. Growth Phase ( 1987 – 1996 )
Profit increased, No threat of competitors, Production & sale increased, sales - 52500
3. Maturity Phase ( 1997 – 2002 )
Sales touched 200,000 in 1999, repositioning of Maruti, entry of competitors like tata, gm , ford
4. Decline Phase ( 2003 – present )
Heavy competition, Decrease in sales, withdrawn from 13 cities
CONSUMER & CUSTOMER

As far as the difference between the customer and the consumer is to be understood, the person who pays
for such a product is simply the ‘Customer’ and the person who utilizes the benefits of the product, is the
‘Consumer’. Eg, Baby products Johnson’s baby shampoo
Customer: Mother & Consumer: Baby
New Product Development Process
1. Idea generation.
2. Idea screening.
3.Concept testing.
4.Business analysis.
5.Product development.
6. Test marketing.
7.Commercialization.
Pricing Strategies
1. Penetration Pricing : The price changed for products and services is set artificially
low in order to gain market share.
Example:
IKEA [Swedish furniture retailer] introduced products at very low prices, a large number of buyers
is attracted, making Ikea the biggest furniture retailer worldwide. Although
the low prices make each sale less profitable, the high volume results in lower
costs and allows Ikea to maintain a healthy profit margin. In order for this
new product pricing strategy to work, several conditions must be met. The
market must be highly price sensitive so that a low price generates more market
growth and attracts a large number of buyers. And economies of scale must be
possible.
RELIANCE JIO prepaid plans start from as low as Rs 19, and go up to Rs. 9,999,
while postpaid plans are available at Rs. 309, Rs. 509, and Rs. 999
denomination.
It launched its 4G service

commercially on September 5, 2016 for free and crossed 50 million subscribers
in just 83 days, and 100 million in 170 days, adding at an average rate of 6
lakh subscribers per day.
It extended the free usage period
for Jio services to its existing and new customers till March 31, 2017reaching
the 100 million user mark in the first 170 days, adding consumers at an average
of 600,000 a day.
The company said that in terms of
data usage it "has become the largest network globally" and plans to
add one lakh mobile sites in coming months to double the network size.
2. Skimming Pricing
: Price
skimming sees a company charges a higher price because it has a substantial
competitive advantage. However, the advantage tends not to be sustainable.
Higher price attracts new competitions
Example: APPLE INC. prices
their innovative products higher during their initial release, because the
company knows steeper prices won’t decrease customer demand for the latest
gadgets, and they benefit from the higher short-term profit margins.
One of the things to do in
Maldives is to try the underwater spa in the Huvafen Fushi resort.
3. Psychological Pricing : is a pricing and marketing strategy based on the theory that
certain prices have a psychological impact.This approach is used where the
marketer wants the consumer to respond on an emotional, rather than rational
basis.
Example: Bata uses psychological pricing as its pricing strategy. It
generally prices a product to the nearest lower“9”digit figure of the actual
price. For example, any commodity to be prices $10 is priced at $9.99 to lure
and attract more customers.
Bata started this strategy in terms of pricing its products long back, but it is still being implemented in Bata
Showrooms.
4. Product line Pricing : is oriented on separating goods into cost categories in order to
create various quality and feature levels in the minds of consumers. This
strategy is typically adopted where you wish to market to different customer
types or wish to anchor your products. The goal of product line pricing is to
maximize profits.
Example: Unilever Surf Excel | Ariel is a marketing line of laundry detergents made by Procter &
Gamble
1. Bundle pricing: Mcdonalds happy meal plan

2. Geographical pricing: in the gasoline industry. This practice entails oil companies charging gas station
owners different prices for the same gasoline depending on where their stations are located.
3. Promotional pricing: giving offers and dicounts like “Buy one get one” campaign.
4. Captive pricing: Razor of dollar shave club
5. Surge pricing: Ola, uber, there prices are dependent on demand and supply
6. Competitive pricing: pepsi & coca cola
1. Intensive
Distribution : A marketing strategy under which a company sells through as
many outlets as possible, so that the consumers encounter the product virtually
everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft
drinks are generally made available through intensive distribution.This
method is particularly useful for products like soft drinks, cigarettes.
Example: ITC
[Indian Tobacco Company] has the
most popular brands if cigarettes in India. The sale takes from the largest
retailers like Big Bazaar, Spencers to the smallest of paanwalas at every nook
and corner in India, thus deeply penetrated.
COCA-COLA uses an intensive distribution strategy. This is so because the
manufacturer tries to distribute their product to every outlet possible. Coke
is everywhere! Super markets, gas stations, and even clothing stores; you name
the outlet, Coke is there. Soft drinks is even one of the examples used for
Intensive distribution in the text.
2. Exclusive distribution : is an agreement between a distributor and a manufacturer that
the manufacturer will not sell the product to
anyone else and will sell it only to the exclusive distributor. At the same
time, even the exclusive distributor has to enter the agreement that he will
only sell the products of the manufacturers exclusively and will not sell those
of the competition. This ways, the market is an open ground for the
manufacturer and the distributor and they have complete control on the distribution
of the product.
Example:
JAHUAR [Tata Group] is sold through exclusive authorized dealerships that make it
available to the end customers. Jaguar has its own global logistics network to
support the movement of Vehicles from the manufacturing site to sales site/
showrooms. It has a network of 2700+ dealerships out of which 1000+ is jointly
branded by Jaguar & Land Rover.
3. Selective distribution : is a distribution approach where selective and few outlets are
chose through which the product is made available to the customers. Unlike
intensive distribution, not all available outlets are targeted and neither is
it like exclusive distribution where there is only one outlet.

A few outlets with calculated
potential are identified and then they are given the rights to stock and sell
the offerings of a company.
Example:
APPLE INC. uses a selective distribution strategy, which involves some
degree of exclusivity that could limit market reach (Greenspan, 2015). This
means that Apple has exclusively authorized retailers that can sell their
products. Despite the broad range of retailers mentioned earlier, Apple is
selective in regards to its distribution, not allowing popular retailers like
Sears, JCPenny, Bed, Bath & Beyond to sell their products. These retailers
are particularly excluded because they do not reach certain consumers. Some
people live in more rural areas and don’t always feel the need to travel, thus
not frequenting these retailers. Even though Apple has provided its product to
a lot of retailers, many don’t always carry every possible product available to customers.
Promotion Concept
Sr. Advertisement Insights

No
1 Liril Soap The insight is that earlier women used to egt time only while bathing,
therefore ad showed it and she forgets all her tension
2 Idea - Idea was restricted to only a certain area, after reaching pan India, the
perception issue was idea became a national network
Honey Bunny
3 Airtel It was one of the top most companies, therefore to grow telecomm was
not the only way forward. They came up with data sharing which focused
on youth - “Jo tera hai woh mera hai”
4 ICICI - There was a time where they used to celebrate Women, but nothing for
men even after their selfless service and care.
“Bande achhe
5 Coca-Cola Out of the 4 P’s, place is what Coca-Cola chose - “Thanda matlab Coca-
Cola” | Hyderabad - Distribution through paanwala, because highest
penetration
Consumer behaviour
1. Need Recognition (Initiator) - I urged my father to buy a phone
2. Information Search (Gatekeeper) - I searched on various platforms to gather information

regarding the various options I have i.e, Public, private, experimental & commercial
3. Evaluation of Alternatives (Influencer) – Comparison of various models wrt. Benefit, quality,

price, history, population, services, availability
4. Purchase Decision (Decision maker) – Choosing the most viable option
5. Purchase (Buyer) – My father buys the chosen phone
6. Consumption (User) – I use the phone
7. Post Purchase Evaluation – I will then evaluate the UI of the phone
Market Challenger
1. Frontal Attack: Horlicks & Complan brand War, complan was the market leader and Horlicks was the
challenger. Horlicks attacked the complan strength by advertising that complan has inferior quality of
products in it.
2. Flank Attack: Maggie & Yippee, Maggie is the market leader and yippee noodles attacked its
weakness that Maggie noodles get sticky after some time but their noodles does not get sticky.
3. Encirclement Attack: Royal Enfield & Bajaj Dominar, Bajaj dominar attacked royal Enfield strengths
that are muscled, sturdy, heavy and simultaneously attacked on its weakness that are less speed, poor
braking system, etc
5. Guerrilla Warfare: BMW & Mercedes, in movie Ghajini BMW showed Amir Khan riding in BMW
while his employees riding in Mercedes, so proves BMW is superior to Mercedes
Market Leader
2. Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore Indian-
defence strategies.
Market Nicher
and forum mall, Medium footfall (501-999)- central mall & majestic street, Small footfall (<501)- Hong
Kong bazaar & shangai bazaar
Ferrari
Market Follower
Product Line Extension ( Coca cola )

Porters 5 forces UBER
ANsoff matrix nivea
BCG matrix coca cola
Name : Shanice Akkara
Roll Number : 62

Idea Generation:
To create an option for people who want to move from a 2-wheeler to 4-wheeler – at
the price of a 2-wheeler
Idea Screening:
When people were asked as to why a 4-wheeler was an aspiration – they said that they
would have better marriage prospects.
The nano is constructed of components that can be built and shipped separately to be
Test marketing:
Crash testing
Commercialization:
Launch the product
Pricing Strategies :
1. Bundling – WOW menstrual cup and intimate wash
4. Economical – Wheel Detergents
5. Premium – Sabhasachi
-----
Backward integration: Nirma competed against Surf Excel through backward integration .
Mass distribution: Intensive distribution – Parle G
Selective Distribution: Woodland, Kaya Skincare (restricts the number of outlets handling a
product)
Exclusive Distribution: Producers select only a few intermediaries. Example – OnePlus
Advertisement: Bande Ache hai – ICICI Bank
Insight: Jo Zimmedari nibhate hai, jatate nai. For the men of the society who take up many
responsibilities
Segmentation
Demographic:
Psychographic:
People suffering from hair loss due to stress and a busy life.
People who don’t really have the time to take care of their hair but are afraid of losing it
Behavioral:
Hair oils are typically used before hair wash (2-3 times a week) among Indian Women.
Geographical:
Urban and Rural
Targeting:
Positioning:
They positioned their hair oils as something that does not require a lot of efforts
Differentiation:
Selfie Bottle
BCG Matrix: (ITC)
STAR
Hotels
Paperboards/packaging
Speedy service
Agri business
QUESTION MARK
FMCG Industry
CASH COW
Cigarettes
DOG
ITC Infotech
Ansoff Matrix:
Market Penetration
Clever pricing
Happy meal
Speedy service
Drive through
Product development
McAloo, Masala grill, Royal Paneer
Tried to replace their menu which
included beef with vegetarian options
to suit the India palate
Market Development
Has presence in 119 countries and is
further planning to open in other
countries as well
Diversification
Introduced McCafe
Product line extensions :
Chocolate bars
5 Star
Dairy milk
Bournville
Perk temptations
Chocolate boxes and pouches :

Celebrations
Dairy milk shots
Gems
Beverages
Bournvita
Biscuits
Oreo
Porter’s 5 force model: JIO
The bargaining power of customers is high because Number Portability is easily accessible to all
consumers and they have a choice between different telecom service providers. Consumers can choose
from a different plan offered by multiple telecom (Hubmobiles,2016) companies according to their
requirements. They can switch to any service provider as no switching costs are involved
Competitive rivalry is high in this industry as there are established brands in the industry. Airtel,
Vodafone, and Idea have been in the industry for around a decade. The plans offered by Airtel
(ETtelecom,2017) and Vodafone were similar before Jio entered the market. To survive in the market,
Airtel has used defensive strategy and reduced its prices to compete by Jio.
Threat of new entrants and substitutes is low because the telecom industry requires high capital
investment. Jio has already invested around Rs. 1.5 lakh crore for pan– India (Reuters,2017) operations.
It will also be fairly difficult for new companies to survive as there are already established networks.
Even though Jio is a new company, there are high chances for the company to survive as they have more
capital to invest (Financialtimes,2017). Jio took approximately five years to develop VoLTE technology
and hence it is a sustained competitive advantage. It will take new companies’ years to develop this
technology which reduces chances for a new company or a rival to be as successful as Jio as they have a
first mover advantage with VoLTE and 5G.
MARKET CHALLENGER
· Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price with
the same level of the quality as that of other competitors in the market.
· Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna” for the
rural people and outshine the other coloured TV players who had a less focus on these areas.
· Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to outshine
the other.
· Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well
· Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each
other. When the coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using the
punch line “ Nothing official about it”.
MARKET LEADER
Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also in marketing they
enjoy beverage of world-class marketing is what makes Coca-Cola the world leader in creative communication.
MARKET NICHER
· Product /Product line speacialist: Amul offers a series of closely related products such as milk ,butter ,ghee
,yoghurt ,ice-cream, chocolates, etc
MARKET FOLLOWER
· Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from each
other by changing the style of the automobile. Adapters can soon become leaders as well because they can adapt,
learn and make a better product than the higher competition.
· Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution to
· Cloning: if you get watches made from Rado as Rodo, or bags of Gucci, as GUCCA, than that’s cloning.
Name: Aditi Bairolu
Roll number: 69
The customer is the person who buys the goods or services. Generally, a grocery store has customers who come
into the store to shop for food and household items.
Customers can also buy services. One example is a person who runs into a nail salon for a quick pedicure. She is a
customer. Consumers use the products or services they buy. Thus, consumers are often also considered
customers. In keeping with the example of buying groceries. Example: Parents buying diapers are the customers
and babies are the consumers.
New product develpment
Idea Generation
Idea generation is the first step of New Product Development process. It is a systematic search to find out new
ideas. It comes from everywhere and in any form. In the first stage, new ideas are collected from many sources,
which are
Internal Sources. Mostly, large companies have their own formal Research and Development
department. But normally any employee can come up with a good idea.
Customers. A company should always listen to customers’ questions, complaints and feedbacks that help
to generate new product ideas to satisfy customer problems.
Competitors. To generate ideas companies can conduct competitors swot analysis.
Distributors and suppliers. Also known as collaborators are close to the market. They know the consumer
problems and new ideas and techniques to address these problems.
Idea Screening
Idea generation can provide us with a pool of ideas. But the second step of new product development process is
to find good ideas and drop the poor one. Following are some of the factors influencing evaluating criteria to
make it succeeded
Is the product useful to customer’s needs?
Company objectives and resources (people and skills)?
Company strengths and weaknesses?
Affordability, advertising and distribution?
Current trends?
What is the expected return on investment

Concept Development and Testing
Concept development and testing is the third step of new product development process. A product concept
provides a detailed description of the idea, keep in mind your consumer perspective.
Those ideas qualify the screening stage to become a concept and it must be tested. Companies cannot launch a
new product without properly testing the concept. Concept testing help companies to investigate customers
reactions before introducing to the market.
A more physical and visual presentation is required for a more reliable concept test. The concept further engages
target market. After exposing the concept, companies ask questions from consumers. Companies want to know
the customer’s reactions in term of feedback. Is the concept appealing or not and fulfilling the customers wants?
Marketing Strategy and Business Analysis
In this step, the company develops marketing and business strategy to introduce a new product in the market
successfully. The company engages different business units – to perform marketing and financial analysis – to
meet the marketing objectives.
The company initially explain target market and product positioning. It should also explain sales forecast, market
share and profit both in short and long-run. The company also describes the marketing mix strategy.
Business analysis involves a detailed review of company cost, sales, profit projections whether the company is
satisfied with objectives.
Product Development
When all the marketing and business strategies are finalized. In this step, the product concept is transformed
into a physical product. In the development stage, a prototype is designed that is functional and able to satisfy
the consumer wants. The product undergoes serious tests to make sure its effectiveness and performance.
Marketing Testing
After designing a successful prototype, it is introduced for further research and feedback. With the help of test
marketing, the company tries to understand the consumers and dealers feedback and reaction. Important
changes are made in the actual product if needed. This step completes the process empowers the company to
successfully introduce the new product in the market.
Commercialization
Test marketing helps the company to make decisions and launch the new product in the market.
Commercialization is introducing the new product in the target market. The marketing mix strategies are
applied. Four decisions are important when launching a new product.
When to introduce the product.
Where to launch a new product in single or multiple location, national or international market.
To whom the company must decide distribution and promotion (already decided in test marketing
phase).
How (action plan) a company should introduce the new product in the target market.
Example: Non-invasive glucose measuring instrument.
Pricing Strategy
New Product Pricing Strategies
1. Market Skimming Prices strategy
Skimming pricing strategy adopted by a company which enters into the market with a new and innovative
product. Price skimming allows a company to market its new or innovative product at a reasonably high price, as
initially company does not have competitors’ concerns.
The best example is manufacturers of digital watches who used a skimming approach in the 1970s. After
entrance of other manufacturers in the market as watches were produced at a lower per unit cost, other
marketing strategies and pricing approaches are implemented by initial manufacturers.
In order to enter the market and to gain market share. Some companies either provide a few services for free or
they keep a low price for their products for a limited period that is for a few months. This strategy is used by the
companies only in order to set up their customer base in a particular market.
Example is Reliance Jio
Other pricing strategies
3. Economy pricing or No Frill Low Price
The pricing Strategies of these products are considered as no frill low prices where the promotion and the
marketing cost of a product are kept to a minimum. Economy pricing is set for a certain time where the company
does not spend more on promoting the product and service.
Example is Economy class tickets.
4. Use of Psychological Pricing Strategies
Psychological pricing Strategies is an approach of gathering the consumer’s emotional respond instead of his
rational respond. For example a company will price its product at Rs 99 instead of Rs 100. The price of the
product is within Rs 100 this makes the customer feel that the product is not very expensive.
5. Pricing Strategies of Product Line
Products line pricing is defined as pricing a single product or service and pricing a range of products.
Example if you buy a pack of chips and chocolate separately you end up paying a separate price for each product;
however of you buy a combo pack of the two you end up paying comparatively less price for both and if you buy
a combo of both in a higher quantity you end up paying even lesser.
6. Pricing Optional Products
It is a general approach, if the companies decrease the price of a product or a service they do increase their price
for their other available optional services.
7. Pricing of Captive Products
Captive products have products that compliment the products without which the main product is of no use or is
useless. For example an inkjet printer is of no use without its cartridge it will not work and have no value and a
plastic razor will have no value without its blades.
8.Pricing for promotions
Promotional pricing is very common these days. You will find it almost everywhere. Pricing for promoting a
product is another very useful and helpful strategy. These promotion offers can include, discount offers, gift or
money coupons or vouchers, buy one and get one free, etc. to promote new and even existing products
companies do adopt such strategies where they roll out these offers to promote their products.
9.Pricing as Per Geographic Locations
For simple reasons such as the geographic location the companies do vary or change the price of the product.
Example: Price of Jams of Malpro Farms at Mahabalshwar will be lesser than the price of the same in Mumbai.
10. Value Pricing a Product
value pricing is reducing the price of a product due to external factors that can affect the sales of the product for
example competition and recession.
For example McDonalds the famous food chain has started value meals for their consumer since they have
started facing competition with other fast food chains. They offer a meal or a combination of a few products as a
lower price where the consumer feels emotionally content and continues to buy their products.
11. Pricing of Premium Products
Premium products are priced higher due to their unique branding approach. A high price for premium products is
an extensive competitive advantage to the manufacturer as the high price for these products assures them that
they are safe in the market due to their relatively high price. Example: price of Dove, Price of high end cars like
Jaguar, Audi etc.
Distribution
The MRP is Rs. 191. The company first sells it to the distributor, who at a margin of about 8% sells it to the
wholesaler who then with a margin of about 10% sells it to the retailer. Finally the retailer sells it to the
customer at a margin of about 12%. So, the prices in rupees of the different elements of the supply chain are as
follows:
Wholesaler Rs 151.3 (10% margin), Retailer Rs 168.2 (12% margin)
Consumer Rs 191 Say 2000 packets per month are sold. This is only for 1SKU(5 kg packets of wheat)
Particulars Rs.
COGS 278000
Transport 900
Rent 2000
Salary 800
Other expenses 100
Profit 20800
Promotion and insights
Example: Liril Advertisement.
Insights:
Indians back then had the culture of living in a joint family. (This exists even now.) Women never used to get the
opportunity to have their personal space invading their privacy. The only time they got for themselves was while
bathing. Hence, Liril promotional Ad signifies the much needed freedom and sense of jubilation for the women
influencing them to buy the product.
Samsung Marketing Strategy
Segmentation
Geographic
The company has made a Galaxy segment for urban areas and Samsung Guru Segment for rural areas. The South
Korean firm is known for manufacturing quality phones and it has the largest market share as compared to other
mobile phone makers. The company has added different mobile categories with a specific budget bracket in its
line-up. Thus, there is something for everyone in Samsung stores.
Demographic
The company offers the smartphone for youth under the 16-29 age groups. Middle-class people can use Samsung
Guru because they can easily afford it, it is the number one choice for lower class workers. The Guru Smartphone
comes in many variants and it is available with the 3G facility as well. If you are looking to buy a 3G phone at
cheap rates then opt for this smartphone. While Samsung Galaxy series is for middle-class people and especially
those people who want to buy a quality smartphone with latest features. This classification shows that the
company cares it customers and it offers mobiles to customers according to needs, budget, and requirements.
Samsung has also made an alliance with some IT industry leaders for introducing relevant enterprise solutions. It
will offer comprehensive solutions through the implementation of the latest technology. Samsung Galaxy S6, S7
is the number one choice when it comes to using mobile at the enterprise level. The company offers strong
security features so data of professionals is safe and they can reach their data anytime anywhere.
Psychographic
Samsung caters to those people as well who buy a mobile according to their lifestyle. The company offers some
conjure phones as well such as Samsung S7 comes in Pink Gold color, which is especially for women. The
company offers cheaper phones as well in the range of $120-$200 While, the mid-range mobiles start from $250
and can be purchased in $400. The high-end devices carry a high price tag and the come under $500-$800 price
range. Customers have a liberty to choose a mobile according to choice, lifestyle, and budget.
Targeting
After making market segments on the basis of different classes and groups, the targets need to be identified and
chosen. The company targets various customers and some of them are young people who adopt fashion and
latest technology quickly, executives, business owners, professionals, students, and other common users of
mobiles. Every kind of company can use mobiles of Samsung because they have a user-friendly interface.
Moreover, the company offers discounts as well through its promotions. The target of the company is not only
attracting more customers but retaining loyal customers as well.
Positioning
Positioning refers to the customer awareness about a brand and its uniqueness as compared to others. Products
can be positioned on the basis of product attributes and features. The company has adopted different strategies
for positioning itself in the smartphone market and some of these strategies are subsequent,
• Samsung put emphasis on the real margin that is generated especially from mid-end and high-end
customer segments.
• Promote products through Samsung concept stores.
• Devices have categorized in the market according to features, functions, and price.
• The care network of the company is wider.
• The company offers access to its care line to its valuable customers.
• It is the pioneer company who introduced 3G into smartphones, the company brings innovative products
with the latest technology.
• The major objective of the company is to brand itself as a synonym for quality so when it comes to
buying quality products customers choose Samsung. The firm has created worth of its products by giving
importance to quality.
• It has created an image of a unique brand and people know it as a high-end brand.
BCG Matrix for Samsung

Star:
in this products in higher growth and higher market share. SAMSUNG develop their product in the market to
gain the larger market share and market growth and maintain the stronger position in the market.
Mobile phones and tablets can be seen in star category,

SAMSUNG want to achieve their position as major phone supplier in international market.
With the change in technology, SAMSUNG manufactures the new mobile phones adding new feature to attract
the target market like SAMSUNG galaxy note 8 and galaxy S created the strong brand value
Samsung plasma tv also star for companies, investment in smart tv can become source of long-term profit
Question mark:
some of SAMSUNG product are still in that phase of development which a low market share but high demand
for that product
like SAMSUNG PRINTER, printer has higher demand in the market but in case of Samsung printer it can remain at
the position of a question mark.
Also, Galaxy 7 has gained negative image due to battery overheated.
Dog:
in this product has less cash usage and less cash generation which mean both the market share and market
growth are lower. This is the declining stage,
SAMSUNG TV business decline due to small demand from various countries.
SAMSUNG WATCH is not able to gain attention from a customer and higher competitor is APPLE watch.
Cash Cow
in this product is in low growth market with high market share this is also called mature stage of business.,
return on investment is high but slow expansion indicate the lower market share.
SAMSUNG HOME APPLIANCES, company sells home appliance in different region and reach in global market, but
due to low creativity and doesn't offer the latest technology result in low market share which is in cash cow
class,
Ansoff Matrix of Samsung Galaxy
At the present Galaxy model, new as well existing products, it always has strategy to move forward in current
market, and always try to create new market. Samsung allocate resources and fund as per their product’s
position in the market. Some of strategies covers below objectives:
• Increasing market share

• Creating loyal customer
• Managing cost effectively
• Growing sales and turnover
• Enhancing the strength of the brand
With existing models and market, Galaxy smartphone can be places into various phases of Ansoff Matrix. Higher
management in Samsung Galaxy has product-market growth strategy. Below are four strategies in Ansoff Matrix
that galaxy has adopted for various models:
1. Market Penetration: This involves increasing market share with existing products. This involves finding new
ways to move vertically with the current product to increase its market share. As India is highly price sensitive
market. Thus Samsung Galaxy has many smartphones which are not so high in price, still with proper promotion
activities, it has been able to increase its market share. For example: Samsung Galaxy Grand, by proving 15%
cash back with ICICI bank cards and no processing fee, it was able to sell more one million smartphone all over
India.
2. Product Development: This involves developing new product for existing market. This involves thinking about
new product which can meet customer requirements more closely. Samsung Galaxy introduced Galaxy Y Dous,
which was affordable (price INR 7000 in 2011). It was mainly introduced for students and daily home purpose.
Where people can have status of having smartphone and within range. Before this phone, most of the
smartphones by big brands like Samsung, HTC and Apple was too costly. Thus Galaxy Y Dous fulfilled
covetousness of having smartphone.
3. Market Development: This entails finding new market for existing product. Galaxy adopted this strategy by
launching its phone in India. Since its first Android model (Samsung GT-I7500), it considered India as potential
market. All other rivals were taking India as poor market for such highly technical products and highly price
sensitive market. But Samsung considered it as potential market and launched various products since 2009. It
has product for all type of consumer whether they like new and unique product or cheap and long life product.
That is why it has smartphones in all range (INR 4000 to 55000).
4. Diversification: This involves creating new products for new market. This involves innovation and that is why it
is risky. Finding new product and creating market happens very rarely. On the other hand, if existing activities
are threatened then diversification helps to spread risk. Samsung launched Galaxy S III (Designed for Humans),
which was new product. This product was inspired by Nature. Apart from being very stylish and sleek, it has
many functionality which was never been introduced, such as voice recognition, understanding one’s intention
and sharing moments instantly and easily. The main intention of this product was to make human interaction
with smartphone more easily and neutral.
Porter’s 5 forces analysis for Fast Food Industry
Porter’s 5 forces:
Image Credit: MIT OpenCourseWare
Five Forces example: Fast-food industry
To understand the impact of Porter’s Five Forces model, let us now look at each of the forces as though it is
acting on a particular industry, say the fast-food industry of burgers, pizzas, and sandwiches.
1. Bargaining power of buyers
The buyers have high bargaining power in a place where there are many fast-food joints, as they can choose any
one of them.
For example, if the queue is too long at one outlet, the buyer can probably go to another outlet just across the
road. The determinant of the high buyers’ bargaining power, in this case, is the high number of sellers to cater to
the buyers. But the high bargaining power of the buyer is a disadvantage to a fast-food restaurant operating at
the place.
2. Bargaining power of suppliers
The main suppliers in the fast-food industry are dough, dairy produce, and meat vendors. Their bargaining power
is low since there would be a number of suppliers of these items.
The determinant of the low suppliers’ bargaining power here is the lack of differentiation among the suppliers’
products (the existence of a number of reliable suppliers). So, this is an advantage for a fast-food outlet or chain.
3. Competitive rivalry among competitors
The industry is chock-a-bloc with competitors—there are big brands such as McDonald’s and KFC, and medium
and smaller brands, including local restaurants and bakeries, selling a variety of snacks and quick-eats.
The determinant of the high competition is the high number of eateries selling quality products. This situation is
a disadvantage to a fast-food eatery.
4. The threat of substitute products
Restaurants and other eateries are quite capable of selling the types of products sold by a fast-food joint, such as
a burger or a sandwich. So, the threat of substitute products is quite high for a fast-food restaurant.
The determinant of the high threat of substitutes is the lack of differentiation among the products available
(except perhaps in the case of McDonald’s or KFC, whose products are seen as unique)—obviously a
disadvantage for a fast-food outlet.
5. The threat of new entrants, or barriers to entry

An entrepreneur requires a complex set of permissions to open a restaurant. In addition, good infrastructure
needs to be built up. Then there is the task of creating unique products to set apart the restaurant from its
competitors, which may include multinational chains.
Any businessperson would baulk at the prospect of entering this business. The determinant of the low threat of
new entrants is the requirement of a number of permissions (tough barriers to entry) and the established
products. Therefore, this is an advantage for a fast-food joint.
The competitive scenario
From the analysis above, we infer the following scenario of competitiveness in the fast-food industry:
• High bargaining power of buyers: A disadvantage for a fast-food outlet
• Low bargaining power of suppliers: An advantage
• High competitive rivalry among competitors: A disadvantage
• High threat of substitute products: A disadvantage
• Low threat of new entrants: An advantage
Product Life Cycle

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different
things for business that are trying to manage the life cycle of their particular products.
Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product.
The size of the market for the product is small, which means sales are low, although they will be increasing. On
the other hand, the cost of things like research and development, consumer testing, and the marketing needed
to launch the product can be very high, especially if it‘s a competitive sector.
Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because
the company can start to benefit from economies of scale in production, the profit margins, as well as the overall
amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional
activity to maximize the potential of this growth stage.
Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now
to maintain the market share they have built up. This is probably the most competitive time for most products
and businesses need to invest wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a competitive advantage.
Decline Stage – Eventually, the market for a product will start to shrink, and this is what‘s known as the decline
stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the
product have already purchased it), or because the consumers are switching to a different type of product. While
this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-
expensive production methods and cheaper markets.
Samsung Galaxy series: Samsung Galaxy has launched 46 major smartphone (excluding Samsung Galaxy Tablets
and minor versions of Galaxy Smartphone) (Source: Samsung Galaxy Website). At any point of time Samsung has
a smartphone in each phase of Product Life Cycle.
Below are the various stages of Product Life Cycle and position of various models of Samsung Galaxy Smart
Phone:
1. Introduction Stage: Any product which is on this stage, is generally expensive, while market share is very low.
Also sales is very less. Products have unique qualities which are rare in market. Differentiation is one of the
major characteristic of such product. If it is technological product then only Geeks wish to have such product.
Samsung Galaxy has below sets which are currently on this stage: • Samsung Galaxy S5: Price is INR 52000. Thus
very low market share in countries like India. Popularity is only 2.6 % (Source: gsmarena.come). This has all new
feature including Android Verrsion (Android Kitkat). It has sold below 1 lac sets in India (Souce: EconomicTimes)
• Samsung Galaxy Avent: Launched on Jul 30, 2014. This has yet very low market share, especially in the
emerging countries like India. This is because of its price. • Samsung Galaxy Alpha: Posted on 13th Aug, 2014.
Price is 30000. Thus very low market share in India.
2. Growth Stage: Growth stage is the one where sales and profit growth is high. Product is moving from unique
to common. Thus product is moving towards standerisation and economy of scale method is, generally, adopted
by comapines. At present Samsung Galaxy has 2-3 product at this stage, such as: • Samsung Galaxy Grand 2:
Released on 25th Nov, 2013. As per Samsung’s strategy, this product was moved from introduction to growth
stage by an offer in 2013, 15% cash back on ICICI band card with 0% processing fee and 0% charges. This set has
Android version 4.3. It has able to sell .8 million sets in India. (Source: FirstPost) • Samsung Galaxy S4 mini: At
INR 17000 to 18000 price, this product is enjoying growth stage.
3. Mature Stage: Product is established and aim for the manufacturer to maintain a market share which they
have already built. Thus product is highly standarised. Price of the product plays an importand role. Generally
companies do not have many product in mature stage as it confuses the customer. Samsung Galaxy has few sets
in this stage, such as: • Samsung Galaxy Core: Released on 6th May, 2013. With price INR 11000, it is at mature
stage. With popularity index 26%, this phone is best for common of India. And considered as best budget phone.
Operating system is not new, which is Android V4.1. This has sold more than 2 million sets in India.
4. Decline Stage: Market for this product starts to decline. Even low price does not play any role because of old
and very common features. This happens after maket becomes saturated. New products with better quality are
present in the market. Galaxy has below set in this stage:
• Samsung Galaxy Ace: Launched on 26th Jan, 2011. This is outdated smartphone now. After enjoying high
market share during 2011-12, it has come to decline phase now. Price is INR 7000. Currently it sells less than 10
thousands sets per quarter. (Source: http://www.bloomberg.com/news/2014-04-28/samsung-profitbeats-
estimates-on-cheaper-galaxy-phones.html) • Samsung Galaxy Star: This set was launched on 15th Mar 2013. But
because of many other products in market, this reaches to decline stage very soon. Price of this set is INR 5800.
But Motorolla and Micromax has much more feautures in this range, thus it is no more in the choice list of a
consumer.
Consumer Behaviour
The buyer decision process represents a number of stages that the purchaser will go through before actually
making the final purchase decision. Problem recognition is internal or external.
Example:
Product Line Extension
A product line extension is when a company creates a new product in the same product line of an existing brand.
It is summation of product lines.
There are 3 attributes:
Length, width and depth.
Two types: line extension is vertical extension, line addition is horizontal extension. Depth is SKUs. Length=
width*depth.
1. Length
Market Leaders, Challengers, Followers, Nicher
Marketing Strategies for Market Leaders:
Market leader has the largest market share in the relevant product in the industry. It has a a dominant position
in the market. Obviously, it leads other firms in new product development, price change, distribution coverage,
promotional activities, and novel experiments.
The leader may or may not be respected by other firms, but other firm has to acknowledge its dominance. Other
firms can challenge, follow or avoid the market leader. In India, well-known market leaders are Maruti Suzuki in
cars, Hero Honda in two-wheelers, Hindustan Unilever in consumer packages goods, Coca-Cola in soft-drink,
McDonald’s in fast food, Life Insurance Corporation in life-insurance, and so forth.
A few market leaders have monopoly in the market. They have to remain alert all the time leadership to
maintain their leader-position.
Strategies:
It is hard task to remain the number one in market.
The firm desiring to maintain market- leader position has to adopt one or more of following three major
strategies:
1. Expanding Total Market
2. Defending Current Market Share
3. Expanding Market Share
1. Expanding Total Market:
The leader normally gains more when the total market expands. Naturally, when total market or the industry
expands, major player will gain more.
Total market can be expanded in four different ways:
i. Add New Users:
The leader firm must try to add new users. Every product class has potential to attract new buyers who are
either not aware of the product or are resistant due to high price and lack of desired features.
New users can be added in several ways:
a. Convincing non-users to use the product (market penetration strategy).
ii. Discover New Uses:
Another option to expand the total market consists of discovering and promoting new uses of the existing
products.
iii. More Usage per Occasion/Time:
The third strategy to expand the market consists of convincing the present users to use more of the product per
use occasion.
iv. More Frequent Uses:
Sometimes, a company tries to convince users to use the product more frequently to increase consumption.
2. Defending (Maintaining) Current Market Share:
This strategy is based on the theme: ‘Customer-retention is more profitable than customer- creation.’ At any
cost, the current market share must not be endangered. While expanding total market, a market leader must
continuously defend its current market share against rivals’ attacks.
For example, Coca-Cola guards its market share against Pepsi-Cola. Hindustan Unilever protects its share against
Procter and Gamble. Maruti Suzuki India tries to protect its market against Tata Motors and Hyundai Motors. A
leader firm has to do everything possible to defend its current market share.
a.Continuous innovation, better customer service, distribution effectiveness, and cost-cutting can increase
competitiveness.
b. Adding more users in user-class (new market strategy)
c. Winning competitors customers (aggressive strategy).

d. Selling product in other markets (geographical-expansion strategy)
There are six defense strategies:
i. Position Defense:
The most basic defense strategy is to build an impregnable (indestructible, unconquerable, or unbeatable)
fortification (protecting fort) around one’s territory to keep the opponents away.
ii. Flank Defense:
Here, the purpose is to protect weak sides or fronts. Flank defense consists of erecting/setting outposts to
protect weak fronts that are vulnerable to be attacked. Such protection attempts serve as invasion base for
counterattack, if needed. Quality improvement, introduction of low-price products, aggressive sales force,
etc., can make sense.
iii. Preemptive or Preventive Defense:
The basic idea of preemptive defense is to launch the attack before the enemy starts attacking. It is like: To
attack the enemy earlier to avoid enemy’s attack. Playing the psychological games is very common to discourage
competitors’ maneuver (movement).
iv. Counteroffensive Defense:
Counteroffensive indicates responding enemy’s attack with a counterattack. The leader cannot remain passive
when competitor’s attacks in forms of price-cut, product modification, promotion blitz (bombardment), or any
time of invasion on its sales territories
v. Mobile Defense:
Mobile defense – also called shifting defense – is much more than simply protecting the territories. The leader
stretches or expands its domain (area) over new territories that can serve as the future centers for offense as
well as defense. A leader will deploy its resources in such a way to avoid the future invasion and create an
impression in mind of competitors that leader is capable to safeguard its territories.
There are two approaches to mobile defense:
a. Market Broadening Company must maintain its strengths today to fight in the future. It must go for
reasonable broadening.
b. Market Diversification:
Market diversification calls upon moving quickly into unrelated industries to strengthen its position.
c. Contraction Defense:
Sometimes, even large companies can no longer defend all territories. The best strategy in this situation is a
planned contraction, i.e., strategic withdrawal. Planned contraction doesn’t mean market abandonment (fleeing
from the market), but rather giving up weaker territories and concentrating on stronger territories.
3. Expanding Market Share:

Instead of expanding total market and defending current market shares, sometimes, the market leader prefers
to improve profitability by increasing market share. The extent to which the increased market share results into
improved profitability depends on a lot of variables. Here, company must do something to snatch the market
share from the pockets of competitors.
There are several ways to expand market share:
i. Adding New Product Lines:
In order to expand market share, the market leader can add new and diversified product lines to make the
product mix comprehensive and attractive. However, there must be adequate demand for new product lines.
ii. Expanding Existing Product Lines:
It is a product line extension strategy. It calls upon expanding current product lines by adding new models,
varieties or items with attractive features (colours, sizes, shapes, weights, get-ups, etc.) and superior
qualities(durability, taste, usefulness, safety, convenience, status, etc.)
iii. Improving Product Qualities:
Market share can be increased by improving qualities of current products so that customers expecting better
qualities can be attracted.
iv. Increasing Promotion Efforts:
Heavy advertising, aggressive sales force, effective sales promotion, and attractive publicity efforts can help
expanding market share faster relative to competitors.
v. Improving Distribution System:
Market share can be expanded via better distribution system. Both direct and indirect channels and overall
physical distribution system must be modified so that customers can avail the products with the least difficulties.
Similarly, effective distribution system can bring down overall selling costs which can further improve
profitability.
vi. Deploying Aggressive Sale Force:
Effective personal selling efforts also have positive impact on sales volume, market share, and profitability as
well.
vii. Applying Price-cut:
To attract price-sensitive customers, leader can practice price-cut strategy. This strategy is profitable only when
the per cent of sales-rise is more than per cent of price-cut.
viii. Improving Production Efficiency:
A leader must improve production efficiency to reduce overall costs. Due to improved production efficiency, a
firm can sell better-quality products even at low price.
Marketing Strategies for Market Challengers:
Market challengers are known as runner-up firms. They occupy second, third and lower ranks in an industry.
Bajaj Auto in two-wheelers, Tata Motors and Hyundai in cars, Reliance Petro and Essar Oils in refineries, Pepsi-
Cola in soft-drink, Procter and Gamble in consumer packaged goods, Vodafone in cellular service providers, Sony
and Samsung in cell-phone instruments, etc., are some of the market challengers in India.
Strategies:
The challenger can exercise following strategies:
1. Defining Strategic Objectives and Opponents:
First of all, a market challenger firm must define its strategic objectives. Normally, most of market challengers’
strategic objective is to increase market share. Then, the challenger has to decide on the opponents to attack.
Like market leaders, the challengers cannot fight against all opponents. Therefore, a challenger firm has to select
the specific opponent to attack.
A market challenger can attack any of the following opponents:
i. Attacking the market leader.
ii. Attacking the firms of its own size that are not doing the job well and are underfinanced.
iii. Attacking the small local and regional firms that are not doing the job well and are underfinanced.
2. Choosing General Attack Strategies:
Once strategic objectives are defined and opponents are selected, the challenger can apply following attacking
options:
i. Frontal Attack:
A frontal or “head-on” attack is an aggressive attack strategy. A challenger attacks the opponent’s strengths
rather than its weaknesses.
IBM’s attack on Microsoft is the best example of frontal attack. This attacking option is widely practices in
Banking, insurance, cell-phones, airways, etc.
ii. Flank Attack:
The challenger concentrates on opponent’s less-secured, rear-side or weak spots to attack. It is a side-attack
rather than a front attack strategy.
In geographical attack, the challenger spots (locates) areas where the opponent is underperforming. And, in
segmental attack, a challenger spots the markets, which are not served by the leaders. The firm tries to fill the
gap by finding needs and satisfying them. Naturally, flank attacks are more likely to be successful than the
frontal attacks.
iii. Encirclement (All-round) Attack:
Encirclement attack is a form of all-rounded and comprehensive attack. It involves launching a grand offensive
attack on several fronts, so that the opponent must protect its fronts, sides, and rears simultaneously.
iv. Bypass Attack:

It is the most indirect attacking option to harm others. It indicates bypassing (i.e., ignoring or avoiding) the
enemy and attacking easier markets to broaden one’s resource base. This is the easiest way to face the leader.
There are three approaches:
a. Diversifying into Unrelated Products:
It involves producing and introducing unrelated product to avoid direct confrontation.
b. Diversifying into New Geographical Markets
c. Leapfrogging into New Technologies to Replace Existing Products:
It involves researching and developing patiently new technologies and launching an attack with superior
products.
v. Guerrilla Attack:
This type of warfare contains making small and intermittent (sudden and irregular) attacks on enemy’s different
territories. A firm may undertake a few major attacks or continuous minor attacks for longer time.
3. Choosing Specific Attack Strategies or Attacking Tools:
The five main attack strategies – frontal attack, flank attack, encirclement attack, bypass attack, and guerrilla
attack – are very broad.
These strategies consist of many specific attack strategies, some of them have been described as under:
i. Price-Discount Strategy:
It consists of offering a comparable product at a lower price. Success of price-discount strategy works
successfully if (1) the challenger can convince that products and services are comparable to that of leaders, (2)
buyers must be price- sensitive and feel comfortable to buy, and (3) market leader must not cut its price in spite
of challenger’s attack.
ii. Cheaper-good Strategy:
It consists of offering average or low quality products at much lower price.
iii. Prestige-good Strategy:
It consists of launching the high quality products and selling them at premium price. This strategy succeeds if
specific group of buyers are ready to pay high price for superior quality-prestigious products.
iv. Product-proliferation Strategy:
It consists of attacking leader by launching a large number of product varieties to give buyers more choice.
v. Product-innovation Strategy:
It consists of adopting product innovation to attack leaders’ position.
vi. Improved-services Strategy:

It consists of offering the customers new and better services with same products. Such strategy is widely
practiced in consumer durables.
vii. Distribution-innovation Strategy:
It consists of attacking leaders by discovering new ways or channels of distribution.
viii. Manufacturing-cost-reduction Strategy:
It consists of reducing manufacturing costs by more efficient purchasing, lower labour costs, modern production
equipment, and improved technology.
ix. Intensive Advertising and Promotion:
It consists attacking the leader by increasing advertising and promotional expenditures. The success of the
strategy depends on how far challenger can exhibit superiority over the leader.
Marketing Strategies for Market Followers:
The firms prefer to follow leader rather than to challenge are called the followers.
They have following strategic options:
1. Counterfeiter or Fraudster:
It is a simple way to follow the leader. The follower who wants to be counterfeiter duplicates the leader’s
product as well as package and sells it in the market through disrepute distributors. Products are marketed
secretly to avoid legal complications.
The product seems exactly similar to original product except basic quality and features. This is common strategy
in auto-parts and electronics products. People, knowingly or unknowingly, buy such duplicate products as they
are made available at low price.
2. Cloner or Emulator:
The doner clones (emulates) the leader’s products, distribution, advertising and other aspects. Here, product and
packaging may be identical that of leader, but brand name is slightly different, such as “Colgete” or
i. “Colege” instead of “Colgate” and “Coka-Cola” instead of “Coca-cola.”
3. Imitator:
Some followers prefer to imitate/copy some aspects from the leader, but maintain differentiation in terms of
packaging, advertising, sales promotion, distribution, pricing, services, and so forth. Customers can easily
distinguish imitated product from original one. The leader doesn’t care for imitator until imitator attack the
leader aggressively. Quite obviously, such products are sold at low price.
4. Adaptor:
Some followers prefer to adapt the leader’s products and improve them. They make necessary
changes/improvements in the original products and develop little different products. The adapter may choose to
sell the products in different markets (country or area) to avoid direct confrontation with the leader. Many
Japanese companies have practiced this strategy and developed superior products.
Marketing Strategies for Market Nichers (Tiny Firms):
A niche is a more narrowly defined small market (limited number of buyers) whose needs are not being
wellserved by existing sellers. It is a small segment that has distinctive needs and is, mostly, ready to pay high
price. Marketers can identify niches by dividing a segment into sub-segments or by dividing a group with a
distinctive set of traits.
They may seek a special combination of benefits. Niches (small groups of buyers) are fairly small and normally
attract a few competing firms (nichers). A nicher is the small firm serving only small specific groups of customers
called as the niches. The firm’s marketing efforts to serve the niches successfully is called nichemanship.
Nichers understand their niches’ needs so well and minutely that their customers are willing to pay a premium
price. They design special products with distinctive features, qualities, uses, and value for special group of limited
customers. They have the special skills to serve the niches in a superior fashion and can gain certain economies
through specialization.
For example, a footwear company can create niches by designing shoes for different sports (like crickets, hokey,
athletes, golf, etc.), 3nd exercises (like cycling, running, jogging, waking, etc). In the same way, niches can be
created in hotels, cosmetics, cloths, airways, hospitals, and others. Nichers can gain comparatively high returns.
Strategies:
Specialization is the basic idea to serve niches. Nichers can apply specialization on various aspects.
They can practice one or more of following marketing strategies:
1. End-user Specialist:
It is very popular and widely used option to serve niches.
2. Vertical Level Specialist:
The firm can specialize at vertical level of production or distribution, for example, producing only rawmaterials
for specific companies, only warehousing services, or it may concentrate only on retailing. It can serve only a part
of the total process.
3. Customer Size Specialist:
The firm can sell products only to small, medium, or large size customers. For example, a firm can supply one or
two components only to large companies.
4. Specific Customer Specialist:
A firm supplies its products only to distinct group of buyers. For example, designing special two-wheeler for
handicapped people or serving special foods to people who are suffering from certain diseases like diabetes.
5. Geographic Specialist:
The firm serves customers of only specific region or area of the world, for example, specific need of the people
living in the hilly area.
6. Product or Product Line Specialist:

The firm produces or sells only one product or product line, for example, it sells only socks, ties, or tie pins. A
small finance company deals with only car loans or personal loans.
7. Event Specialist:
The firm concentrates its efforts only on particular events or occasions like marriage, grand inauguration,
birthday, anniversary, or some festivals. It offers goods or services for celebrating the events of target buyers.
ASMITA MAHAMUNKAR Roll No. 91
The importance of knowing the difference is very critical in deciding the marketing strategy of the product
or service.
Customer and Consumer are often used inter-changeably by many and it’s necessary that we know the
difference between Customer and Consumer to get the benefit out.
Customer
Customer is the one who buys your product/service.
In simple terms he/she is the purchase of the product/service, he pays for getting the product. A customer
may or may not use it for self.
Eg. A person buying milk is a customer, a retailer buying milk to re-sale it is a customer, a company
Consumer
Consumer is the one who uses/consumes your product/service.
product which is consumed by other person then the other person is the consumer and the buyer is the
customer.
Eg. A person drinking milk purchased by some other person is a consumer.
· Idea Generation:
· To create a safe, affordable and all-weather form of transport for families.
· To create an option for people who want to move from a 2-wheeler to 4-wheeler – at the price
of a 2-wheeler
· Idea Screening:
· A scooter with 2 extra wheels at the back?
· An auto rickshaw with 4 wheels
· 4-wheeler car made of engineering plastic

· But the market demand was for a car and not a scooter
· Concept testing and development:

· When people were asked as to why a 4-wheeler was an aspiration – they said that they would
have better marriage prospects.
· 4-wheeler had an emotional appeal, not just a practical one
· Business strategy development:

ü Establish a factory in a tax-free zone
ü Get the tax advantage on infrastructure
ü Get the suppliers to establish a base near the factory
ü Get special concessions from state government
· Product design and development:
ü Design inputs from institute of Development in Automotive Engineering, Italy
ü Constant design changes
ü Design adaption from Daewoo Matiz and Tata Indica
ü 37 patents associated with the design of Nano
ü The nano is constructed of components that can be built and shipped separately to be
· Test marketing:
ü Crash testing
ü Testing on torture trucks
· Commercialization:
ü Launch the product
ü Produce and place advertisements
ü Fill the distribution pipeline.
Pricing Strategies
1. Bundling – McD Meal

4. Economical – Wheel Detergents
5. Premium –Armani, Sabhyasachi
7. Promotional – Amazon prime being introduced at discounted price, Tatasky
8. Geographical – Prices of Britannia Breads in Mumbai & outside Mumbai
ü Mass distribution: Intensive distribution – FMCG Products. Eg Tata Salt
ü Selective Distribution: Woodland, Dr Scholl orthopaedic sandal, Zara (restricts the number of outlets
handling a product)
ü Exclusive Distribution: Producers select only a few intermediaries. Example – OnePlus, Armani
1. Advertisement: Bande Ache hai – ICICI Bank
Insight: Jo Zimmedari nibhate hai, jatate nai. For the men of the society who take up many
responsibilitiesdilsa
Insight : Idea was restricted to only certain areas, after reaching throughout the country the ad tried to
change the perception of the people that Idea has become national.
STPD
Segmentation Targeting Positioning Differentiation
Sensodyne Clear and People having Household brand to Variety of

focused benefitssensitive tackle sensitivity. products based
for varied oral teeth. Recommended by on sensitivity.
care. People Toothpaste dentists.
suffering from for relieving
tooth discomfort
sensitivity. before during
& after tooth
Urban areas and whitening
AHI > treatments
(80% of
patients
undergo
professional
teeth
whitening)
Colgate Geographic- Max Fresh- Toothpaste that Large
Rural & Urban who want provides decay assortment of
fresh breath. protection, strong oral care
Behaviour – teeth, germ products in a
Oral problems. Active salt- protection. wide price
tooth cavity range.
Demographic-
Kids, Young Colgate total-
adults, Elders all round
protection.
Dabur Demographic- Babool- Dabur red- Non-fluoride

kids, adults & People toothpaste in toothpaste,
senior citizens. suffering budget segment. ayurvedic paste.
from yellow
teeth, woollen Meswak- Premium
gums tooth toothpaste.
ache.
Babool- Medical
Dabur red- benefits, discount
Totth decay, brand.
dryness of
mouth, tooth
loss
Himalaya People who People Complete care Use of anti-

prefer the preferring toothpaste.Presence oxidants.
benefits of herbal of 13 herbs. Competetive
natural herbs. products. pricing.
BCG Matrix – HUL

Ansoff Matrix – TATA
•Market Penetration.
•Tata Delight cutomer loyalty prog launched by Tata motors.
•Tata Tiago, Safari, Zest, Bolt
•New Product Development.
•Tata Nano, Tata Swatch (water purifier)
•Market Development
•Mergers & Acq- Tata & Starbucks, Jaguar
•Alliances- Tanishq, TCS
•Diversification
•Tata communication, Titan, Tata global beverages.
Porter’s Five Force Model – Maruti
•Threat of Competetion- HIGH

•Threat of New Entrants- HIGH
•Bargaining Power of Buyers- HIGH
•Threat of Subsitutes- HIGH
•Bargaing Power of Suppliers- LOW
Product Life Cycle- Horlicks

Introduction stage: q Holicks a brand was established before 6 decades back in 1960. q It is owned by
GlaxoSmithKline consumer health care. q It was heavily advertised as a kid’s nutritional drink q It was a
substitute of “Milk” as Baby Food q It acquired more than 50% market share in India milk beverage
market. q Initially Horlicks is claimed to promote sleep when consumed at bedtime.
Growth Stage: • Excels at delivering the benefits customers truly desired. • Staying relevant. • Pricing
strategy based on “value for money”. • Proper positioning. • Consistency. • Creating entry barriers
Maturity Stage: • product quality • Price • By winning trust of consumer • By getting better labels than its
competitors • By getting a tagline such as ,”taller,stronger,sharper” that stuck in the mind of the consumer
for years and was
ASMITA MAHAMUNKAR Roll No.91
Decline Stage Horlicks has yet to go through the decline stage however with the coming improvement of
other such nutritional drinks such as Bournvita , Milo , Complan , Acti-life……etc, it may very well be
with in the reaches of the decline stage in the coming years.
Consumer Buying Behaviour – Laptops
•Problem Recognition
•Information Search
•Evaluation of alternatives
•Purchase decision
•Purchase
•Post purchase disownance
Step 1 - Need is the most important factor which leads to buying of products and services. Need infact is
the catalyst which triggers the buying decision of individuals.
Step 2 - When an individual recognizes his need for a particular product/service he tries to gather as much
information as he can.
An individual can acquire information through any of the following sources:
● Personal Sources - He might discuss his need with his friends, family members, co workers and
other acquaintances.
● Commercial sources - Advertisements, sales people (in Tim’s case it was the store manager),
Packaging of a particular product in many cases prompt individuals to buy the same, Displays
(Props, Mannequins etc)
● Public sources - Newspaper, Radio, Magazine
● Experiential sources - Individual’s own experience, prior handling of a particular product (Mohan
would definitely purchase a Dell laptop again if he had already used one)
Step 3 As a result of that, the potential buyer becomes acquainted with some of the brands in themarket
and their features. In this stage, Preferences among the brands in the choice set will
be formed.The evaluation is based on the product or service whose attributes are perceived to best satisfy
the need. Namely, it is a brand evaluation stage.
Step 4- After the brands evaluation stage, the intention to buy a specific brand will be made, in this stage,
fivesub-decisions will be made: brand, dealer, quantity, timing and payment method. Then, theconsumer
will execute a purchase intention to buy the most preferred brand or product which they believe may satisfy
them.
Step 5- After purchasing the product the consumer will feel eitrher satisfaction ot dissatisfaction. In post
purchase evaluation the satisfaction will lead to stoargae of the product in the consumers mind.
Product Line Extension- ITC
•ITC
•Food
•Kitchen of India
•Curries
•Paste
•Biryani
•Aashirwaad
•Sunfeast
•Cigarettes
•Gold flake
•India Kings
•Clasic
•Lifestyle
•Wills Lifestyle
•John Players
•Edu & Stationery
•Classmate
•Paperkraft
•Color crew
•
Market Challenger
1. Frontal Attack: Horlicks & Complan brand War, complan was the market leader and Horlicks was
the challenger. Horlicks attacked the complan strength by advertising that complan has inferior quality of
products in it.
2. Flank Attack: Maggie & Yippee, Maggie is the market leader and yippee noodles attacked its
weakness that Maggie noodles get sticky after some time but their noodles does not get sticky.
3. Encirclement Attack: Royal Enfield & Bajaj Dominar, Bajaj dominar attacked royal Enfield
strengths that are muscled, sturdy, heavy and simultaneously attacked on its weakness that are less speed,
poor braking system, etc
5. Guerrilla Warfare: BMW & Mercedes, in movie Ghajini BMW showed Amir Khan riding in BMW
while his employees riding in Mercedes, so proves BMW is superior to Mercedes
Market Leader
2. Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore
defence strategies.
Market Nicher
garuda and forum mall, Medium footfall (501-999)- central mall & majestic street, Small footfall (<501)-
Hong Kong bazaar & shangai bazaar
Ferrari
5. Product /Product line specialist: Amul offers a series of closely related products such as milk,
butter, ghee, yoghurt, ice-cream, chocolates, etc.
Market Follower
Marketing Assignment –Chinmaya Acharya—Roll No -73
STPD-
Below is the example of the STPD for oral hygiene products and their companies
Companies/ST
PD Sensodyne-GSK Colgate Pepsodent-HUL Dabur
Segementation Geography- Geography- Geography- Pyschograph

Urban,rural;Bene Rural,Urban; Rural,Urban; ic-natural
fits for varied Behaviour- Behaviour- and
oral problems segments of segments of ayurvedic
people with people with product;
various teeth various teeth Demography
problems; problems; -age
demography- demography--age
kids,young, and income;
elders brand for aspiring
and striving
Targeting people having Maxfresh-fresh targeted adult Babool-

sensitive breathe, Active males/ females yellow teeth,
teeth;teeth salt- tooth and kids; swollen
whitening cavity, Colgate complete family gums;
sensitive- care product; Meswak-
sensistive 2in1- freshness + cavities and
teeth,Total- germicheck teeth
allround oral sensitivity;
health Red-tooth
decay
Positioning As a 2nd Toothpaste that Long lasting contains
toothpaste brand provides decay protection from ayurvedic
in households to protection; germs;'Dishoom- ingredients;
tackle tooth 'stronger' teeth dishoom', keeps dental
sensitivity campaigns around problems
- 'pappu n papa' away; begin
a great day
the babool
way
Differentiation Sensitive Larger Launched Pep Old is gold:

problems assortment of dental insurance non-flouride
oral care in partnership toothpaste
products in with NIA
wide variety
BCG Matrix-
ITC- ITC Ltd is an Indian conglomerate with a turnover of USD 6 billion and a market capitalization of
USD 22 billion.
ITC Product Mix and Product lines-

Cigarettes- Wills, GoldFlake, Classic, Insignia,etc
Foods- Aashirvaad,Sunfeast,
Hotels- ITC Mumbai,Bangalore,etc
Product Line Extensions –
Below is the example for ITC’s product lines vertical and horizontal extensions
Paperboards and Agri-

FMCG Hospitality packaging IT business
Cigarette ITC
Infotec
Classic Hotels Packaging h e-Choupal
Brand
accomodatio Leaf
Wills n Graphics Tobacco
Agri
commoditi
GoldFlack Restaurants Specialities es
Food Aashirvaa
d
Atta
Namak
Sunfeast
Biscuits
Yipee
Wills
Lifestyle
Lifestyle John
Retailing Player
Classmate
Papaerrkr
aft
Education and Colour

Stationary Crew
Personal Care Fiama
Vivel
ANSOFF MATRIX OF MCDONALDS
EXISTING
MARKET
Clever pricing MC SPAGHETTI, MC ALOO

TIKKI, MCPIZZA, ROYAL
Heavy Meal PANEER
Speedy Service
NEW
MARKET
Has presence in 121 countries and McCafé, McSTOPS,

planning to Open stores in NIGERIA HOTEL(SWITZERLAND)
ARMENIA
Market Leaders, Nichers, Challengers, Followers-
Market Leader
· Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk
relations.
· Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the
· Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets,
· Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound
· Contraction Defence: For example, HUL decided to concentrate on its core business areas,
that is, soaps and detergents, and has emerged as the clear leader in the toilet industry.
Market Nicher:
· End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who
want a long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that
sells school supplies, kitchen goods, and gardening tools, and many more things for the lefties.
· Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s

· Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and
· Product specialist: UNTUCKit brand has created a new line of products for people who do not
like tucked shirts. It gives you a feel of a tucked shirt without actually tucking it.
· Specific customer specialist: Weber carburettor is a company which provides carburettors to

only high end cars like Porsche, Ferrari, BMW.
Market Challenger
· Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti
Dahi at a low price with the same level of the quality as that of other competitors in the market.
· Flank Attack: L.G has successfully made use of this strategy by introducing the colour TV “
on these areas.
· Encirclement Attack: The FMCG industry applies this attack more aggressively with the
· Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand
· Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the
Pepsi counter-attacked it by using the punch line “ Nothing official about it”
MARKET FOLLOWERS
· Adapters -DishTV came in 2004 with A dish concept and then Tata sky entered in market with
the same concept adapting it from its competition in 2006 and became the market leader.
· Imitators -Female footwear shops that almost try to copy the big brands design and sell in the
market.Local boutiques and lehnga shops in chandini chowk copying or imitating sabhyasachi
lehnga’s designs.
· Cloners -Colgate coming as coolgate in market, bisleri coming as bilseri
· Counterfeiters -Mi earphones sold as original as the authentic MI ones in some black market.
Porter’s five forces -
Let us take the example of the Indian Telecom Industry
Rivalry in Competitors-Rivalry is high in the industry because of the below reasons. Therefore industry is
not a good option for a new entrant to setup its business.
Threat of new Entrants – L6ow because of following reason:High Entry and Exit Barriers;
High Capital investment;Already established big players – Market share of Vodafone Idea – 31.73%, Jio –
30.25%, Airtel – 27.74% & BSNL and MTNL – 10.28%;Continuously evolving technology for example –
From 2G, 3G, 4G to 5G, VoLTE, & VoWIFI;Low profits due to high competition
Bargaining Power of Suppliers – Moderate because:Many suppliers for Equipment required for setting
towers;Many manufacturers of Sim Cards; Cost of Purchasing Spectrums from government is fixed and
high;Backward & Forward Integration
Bargaining Power of Consumer – High because of following reason: Price sensitive customer;
Low switching cost because of new MNP Rules & regulation as TRAI reduced the prices for mobile
number portability from Rs19 to Rs5.74;Customer have full information about the current prices of plans
offered by other companies.
Threat of Substitute - Availability of substitutes – Applications using VoLTE technology to offer voice
calls like WhatsApp, google duo, etc. Companies offering Internet like DEN Networks, Excitel, and ANI
Netwo
Product Life Cycle-
Let us take the example of Motorola Droid. It was one of the early devices running on Android OS.
Launched in 2009, it had captured the market but it had a very small life cycle. This period had seen the
exponential growth of android phones and numerous products being launched. Also, continuous OS
updates from 2008-2010 posed a big challenge for the company. Apart from that, competitors also
launched similar product. Below are the details
Introduction
Launched in Nov 6,2009
Product anticipation can nearly eliminate the introduction phase
High early sales volume
Early competition - iPhones, Blackberry,etc
Growth
Very early
Price changes-rebates,bogo
New competitor- HTC Droid Incredible
Maturity
Relatively short period-May to July
Motorola Droid X released on July 2010

Decline
Shift in brand image
Motorola droid 2 released in Aug 2010
Continual software updates
Production stops with introduction of droid 2
Pricing Strategy-
· Premium pricing- High prices are charged- Porsche cars are premium priced the range of
prices are 69.98lakh-2.53crore.
· Penetration pricing- Low initial prices and then gradually prices are increased- Android aims
for greater market penetration with a penetration scheme. Android phones are available at a steep
discount, in the hopes that users will become loyal to the brand. This approach also opens a wider
range of consumers up to the Android marketplace.
· Economy pricing- Low prices- Nirma follows economy pricing where 1kg pack is available
for rs109 where surf excel and other detergents are priced around 170-200.
· Skimming pricing- High initial prices and gradually the prices are decreased as competition
rises.- Apple follows this strategy, when iphone 6s was launched in year 2016 its price was 50000
and as of now in 2019 its price is 24000.
· Complementary Pricing-One of the products is priced to maximize the sales volume and
which in turn stimulates the demand of other product- Gillete shaving blade is priced at just Rs60
and its razor blade is priced at Rs49(for 5 cartridge)
· Differential pricing- Different prices at different time.- This strategy is followed by airlines
the prices of same flight for same route changes as the date of journey comes closer.
· Discount Pricing- Brand Republic sells branded clothes at discounted rates throughout the
year.
· Geographic pricing- Different prices in different geographies- Haldiram 800g bread is priced
at Rs50in Nagpur and Rs.52 outside Nagpur.
· Captive Pricing- Amazon prime, Zomato gold, Tata sky they follow captive pricing where
consumers have to renew their subscription over time.
· Psychological Pricing Bata follows psychological pricing where all its products are priced at
999,1599,1999 etc
· Bundle Pricing- McDonald’s Happy Meals, Pepsodent toothpaste and toothbrush
Distribution Strategies-
· Intensive Distribution: company sells through as many outlets as possible, so that the consumers
encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations.
Example: ITC [Indian Tobacco Company], Big Bazaar, COCA-COLA, FMCG
· Exclusive distribution: Is an agreement between a distributor and a manufacturer that the

manufacturer will not sell the product to anyone else and will sell it only to the exclusive distributor.
Example: ONEPLUS, it sells only through AMAZON. NEXA cars, only sold through their exclusive
outlets. JAHUAR [Tata Group] is sell through exclusive authorized dealerships
· Selective distribution: Is a distribution approach where selective and few outlets are chose
through which the product is made available to the customers Example: APPLE INC, Branded
Promotional Strategy and insights-
Sr. No Advertisement Insights
1 Liril Soap The insight is that earlier women used to egt time only
while bathing, therefore ad showed it and she forgets
all her tension
2 Hutch
Pug following a boy indicating that the network will

be available everywhere. 'Whereever you go we
follow
3 Airtel It was one of the top most companies, therefore to
grow telecomm was not the only way forward. They
came up with data sharing which focused on youth -
“Jo tera hai woh mera hai”
4 ICICI - There was a time where they used to celebrate

Women, but nothing for men even after their selfless
service and care.
“Bande achhe Thus, “Jo zimmedari nibhate hein, vo jjattate nahi hai”
hein”
5 Coca-Cola Out of the 4 P’s, place is what Coca-Cola chose -

“Thanda matlab Coca-Cola” | Hyderabad -
Distribution through paanwala, because highest
penetration
6 Idea - Idea was restricted to only a certain area, after

reaching pan India, the perception issue was idea
became a national network
Honey Bunny
CONSUMER BEHAVIOUR:
o Problem Recognition: The customer must have a reason to believe what they want, where
§ E.g.: A customer is looking to buy a laptop with the highest specifications and
graphics.
o Information Search: Public, Personal, Commercial or Experimental Trials
§ E.g.: The customer may start searching online across various shopping websites
also might have a look at showrooms to gather information.
o Evaluation of alternatives: Customers want to ensure that they have done enough research
prior to making the purchase.
§ E.g.: Customer will now compare all the alternatives which are available based on
o Purchase decision: After exploring alternatives they are deciding whether to move
forward with the purchase or not.
§ E.g. After examining the alternatives the customer has decided to buy a laptop that
suits his/her needs.
o Purchase: Tell your brands purchase process are there too many steps? Is it complicated?
§ E.g.: The purchase process is simple/complicated what the available payment

options are, is the option of EMI available.
o Post purchase evaluation: Associated with consumer satisfaction.
§ E.g.: How satisfied is the customer with the product and service.
NAME- ANKITA PALEJA
ROLL NO.-100
The person who buys the goods or services from a seller is known as the Customer. The person who uses the goods or services is
known as a Consumer.The customer is also known as buyer or client whereas the Consumer is the ultimate user of the goods.The
customer can be an individual or a business entity while a Consumer can be an individual or a family or a group of
people.Customer pays the price of the product or service however he may recover it from the other party, in case if he had
purchased it on behalf of any person. Conversely, Consumer not necessarily pays the price of the product, like in case the goods
are gifted or if they are purchased by the parents of a child.The customer purchases the goods for the purpose of resale or to add
value or for his personal use or on behalf of another person. In contrast to Consumer, who purchases the goods for the purpose of
consumption only.
Ex- When a mom buys anything for a baby she is the customer whereas the baby is the consumer.
1. Idea generation
The new product development process starts with idea generation. Idea generation refers to the systematic search for new-
product ideas. Typically, a company generates hundreds of ideas, maybe even thousands, to find a handful of good ones in the
end. Two sources of new ideas can be identified:
Internal idea sources: the company finds new ideas internally. That means R&D, but also contributions from employees.
External idea sources: the company finds new ideas externally. This refers to all kinds of external sources, e.g. distributors and
suppliers, but also competitors. The most important external source are customers, because the new product development process
should focus on creating customer value.
2. Idea screening
The next step in the new product development process is idea screening. Idea screening means nothing else than filtering the
ideas to pick out good ones. In other words, all ideas generated are screened to spot good ones and drop poor ones as soon as
possible. While the purpose of idea generation was to create a large number of ideas, the purpose of the succeeding stages is to
reduce that number. The reason is that product development costs rise greatly in later stages. Therefore, the company would like
to go ahead only with those product ideas that will turn into profitable products. Dropping the poor ideas as soon as possible is,
consequently, of crucial importance.
3. Concept development and Testing
To go on in the new product development process, attractive ideas must be developed into a product concept. A product concept
is a detailed version of the new-product idea stated in meaningful consumer terms. You should distinguish
A product idea à an idea for a possible product
A product concept à a detailed version of the idea stated in meaningful consumer terms
A product image à the way consumers perceive an actual or potential product.
Concept development
Imagine a car manufacturer that has developed an all-electric car. The idea has passed the idea screening and must now be
developed into a concept. The marketer’s task is to develop this new product into alternative product concepts. Then, the
company can find out how attractive each concept is to customers and choose the best one. Possible product concepts for this
electric car could be:
Concept 1: an affordably priced mid-size car designed as a second family car to be used around town for visiting friends and
doing shopping.
Concept 2: a mid-priced sporty compact car appealing to young singles and couples.
Concept 3: a high-end midsize utility vehicle appealing to those who like the space SUVs provide but also want an economical
car.
As you can see, these concepts need to be quite precise in order to be meaningful. In the next sub-stage, each concept is tested.
Concept testing
New product concepts, such as those given above, need to be tested with groups of target consumers. The concepts can be
presented to consumers either symbolically or physically. The question is always: does the particular concept have strong
consumer appeal? For some concept tests, a word or picture description might be sufficient. However, to increase the reliability
of the test, a more concrete and physical presentation of the product concept may be needed. After exposing the concept to the
group of target consumers, they will be asked to answer questions in order to find out the consumer appeal and customer value of
each concept.
4. Marketing strategy development
The next step in the new product development process is the marketing strategy development. When a promising concept has
been developed and tested, it is time to design an initial marketing strategy for the new product based on the product concept for
introducing this new product to the market.
The marketing strategy statement consists of three parts and should be formulated carefully:
A description of the target market, the planned value proposition, and the sales, market share and profit goals for the first few
years
An outline of the product’s planned price, distribution and marketing budget for the first year
The planned long-term sales, profit goals and the marketing mix strategy.
5. Business analysis
Once decided upon a product concept and marketing strategy, management can evaluate the business attractiveness of the
proposed new product. The fifth step in the new product development process involves a review of the sales, costs and profit
projections for the new product to find out whether these factors satisfy the company’s objectives. If they do, the product can be
moved on to the product development stage.
In order to estimate sales, the company could look at the sales history of similar products and conduct market surveys. Then, it
should be able to estimate minimum and maximum sales to assess the range of risk. When the sales forecast is prepared, the firm
can estimate the expected costs and profits for a product, including marketing, R&D, operations etc. All the sales and costs
figures together can eventually be used to analyse the new product’s financial attractiveness.
6. Product development
The new product development process goes on with the actual product development. Up to this point, for many new product
concepts, there may exist only a word description, a drawing or perhaps a rough prototype. But if the product concept passes the
business test, it must be developed into a physical product to ensure that the product idea can be turned into a workable market
offering. The problem is, though, that at this stage, R&D and engineering costs cause a huge jump in investment.
The R&D department will develop and test one or more physical versions of the product concept. Developing a successful
prototype, however, can take days, weeks, months or even years, depending on the product and prototype methods. Also,
products often undergo tests to make sure they perform safely and effectively. This can be done by the firm itself or outsourced.
In many cases, marketers involve actual customers in product testing. Consumers can evaluate prototypes and work with pre-
release products. Their experiences may be very useful in the product development stage.
7. Test marketing
The last stage before commercialisation in the new product development process is test marketing. In this stage of the new
product development process, the product and its proposed marketing programme are tested in realistic market settings.
Therefore, test marketing gives the marketer experience with marketing the product before going to the great expense of full
introduction. In fact, it allows the company to test the product and its entire marketing programme, including targeting and
positioning strategy, advertising, distributions, packaging etc. before the full investment is made.
The amount of test marketing necessary varies with each new product. Especially when introducing a new product requiring a
large investment, when the risks are high, or when the firm is not sure of the product or its marketing programme, a lot of test
marketing may be carried out.
8. Commercialisation
Test marketing has given management the information needed to make the final decision: launch or do not launch the new
product. The final stage in the new product development process is commercialisation. Commercialisation means nothing else
than introducing a new product into the market. At this point, the highest costs are incurred: the company may need to build or
rent a manufacturing facility. Large amounts may be spent on advertising, sales promotion and other marketing efforts in the first
year.
Some factors should be considered before the product is commercialized:
Introduction timing. For instance, if the economy is down, it might be wise to wait until the following year to launch the product.
However, if competitors are ready to introduce their own products, the company should push to introduce the new product
sooner.
Introduction place. Where to launch the new product? Should it be launched in a single location, a region, the national market, or
the international market? Normally, companies don’t have the confidence, capital and capacity to launch new products into full
national or international distribution from the start. Instead, they usually develop a planned market rollout over time.
In all of these steps of the new product development process, the most important focus is on creating superior customer value.
Only then, the product can become a success in the market. Only very few products actually get the chance to become a success.
The risks and costs are simply too high to allow every product to pass every stage of the new product development process.
Idea Generation:
To create an option for people who want to move from a 2-wheeler to 4-
wheeler – at the price of a 2-wheeler
Idea Screening:
When people were asked as to why a 4-wheeler was an aspiration – they
said that they would have better marriage prospects.

Design inputs from institute of Development in Automotive Engineering,
Italy
The nano is constructed of components that can be built and shipped
separately to be assembled in a variety of locations
Test marketing:
Crash testing
Commercialization:
Launch the product
Fill the distribution pipeline
Pricing Strategies:
1. Penetration pricing: In jio, earlier it was free to induce trials but now for every call to Vodafone and
airtel they pay 6 paisa per call.
2. Price skimming: Apple, because of product differentiation, gradually decrease the price as the
competition product copies the same and sells in cover price.
3. Psychographic pricing: Bata found that customers are more likely to purchase items without zeros at
the end. So they started pricing the products without zero ending. For eg : 299
4. Search pricing : depending on the demand OLA rises its price and decreases its price.
5. Captive product pricing: HP printer is for 11000 and comparatively reasonable. But the cartage, that
should be replaced after a certain time, charges more, around 6000.
6. Segmentation pricing: HUL products have 20 soap products and everyone costs different, as they are
all based on segmentation. Dove and Lux.
7. Promotional pricing: BIG BILLION SALE – Amazon.
8. Geographical pricing: Nandini milk in south costs of Rs.56 and outside south it costs around Rs66.
9. Aggressive pricing strategy: TATA jeep was expected to launch at 16lakhs but was its actual price was
out at 14lakhs.
10. Freemium pricing: VOOT provides shows without charging anything.
Distributor:
The example is of Eagle Enterprises.
No of Retailers(Ahemdabad)-56
Margin Structure Margin Cash Discount Total

Super Stockist 6.0% 1% 7.0%
Stockist 8.0% 1% 9.0%
Retailer 10.0%
Product VARSO Aloe Vera Hair Oil SVAG BASICS Rose

Facewash
SKU 50ml 100ml 200ml 50g
MRP 25 50 90 60
Pack Details No. of Units /
case 120 60 36 48
GST Rate 18% 18% 18% 18%
Company Billing Rate 16.51 33.03 59.45 39.63
Margin Amount 1.16 2.31 4.16 2.77
Super Stockist
Billing Rate 17.67 35.34 63.61 42.41
Stockist Margin Amount 1.59 3.18 5.73 3.82
Billing Rate 19.26 38.52 69.34 46.22
GST 3.47 6.93 12.48 8.32
Landed Price 22.73 45.45 81.82 54.55
Retailer
Margin Amount 2.27 4.55 8.18 5.45
With Primary
Schemes
Billing pcs 108 50 30 32
Primary
Free pcs 12 10 6 16
Schemes
Case Rate 1783.52 1651.41 1783.52 1268.28
Company Billing Rate 14.86 27.52 49.54 26.42
Margin Amount 1.04 1.93 3.47 1.85
Super Stockist
Billing Rate 15.90 29.45 53.01 28.27
Margin Amount 1.43 2.65 4.77 2.54
Stockist Billing Rate 17.33 32.10 57.78 30.82
GST 3.12 5.78 10.40 5.55
Landed Price 20.45 37.88 68.18 36.36
Retailer
Margin Amount 4.55 12.12 21.82 23.64
Promotion and insights
Hero’s Thoda Aur
Hero, the world’s largest two-wheeler brand, has done some impressive campaigns since its split with Honda.The first one, a
couple of years ago, was to establish its presence as Hero Moto Corp in a campaign called "There is a hero in all of us". Its new
campaign, "Thoda Aur" (= a little more), is based on the unique local insight that Indians ask for a little bit extra in everyday
life.Hero supports this insight with its proposition of better mileage in their bikes (remember Tesco’s brand promise "Every little
helps", a universal insight).Created by Lowe Lintas & Partners, Hero’s ad brings a smile to every Indian’s face as it epitomises
the essence of Indian-ness. Whether telling someone that they are a little far off when arriving late for a meeting, or negotiating
prices in a mom-and-pop store or asking the veggie vendor to put chillies free along with vegetables – we all like a bit more.
Segmentation:
1. Geographic Segmentation – Lifebuoy
Variants like Lifebuoy Total, Lifebuoy Plus and Lifebuoy Active – Rural markets
Variants like Lifebuoy Nature and Lifebuoy Fresh – Semi-Urban markets
Variants like Lifebuoy Clear Skin Soap, Lifebuoy Deo Fresh, Lifebuoy shower gel – Urban markets
2. Behavioural Segmentation –
Occasions – Cadbury celebrations during Diwali and Raksha Bandhan, Kalanirnay for every new year.
Benefits - Clean and Clear Foaming Face wash for Normal skin, C&C Pimple Clearing Face wash to fight pimples, C&C
Fairness Face wash for glowing skin.
3. Psychographic Segmentation –
Personality based – Harley Davidson – Not designed to go to office or grocery shopping but for long and adventurous rides.
Lifestyle based – Sahakari Bhandar targets middle class budget savvy individuals who aim to save money wherever and
whenever they can.
Attitude and self-esteem based – Dove campaign of making women acknowledge their beauty.
4. Demographic Segmentation –
Age and Gender – Mattel toys – 4-5 year boys – Hotwheel Copter/Cars
4-5 year girls – Enchantimal Dolls/Polly’s Pocket Dolls
8+ boys and girls – Uno and Pictionary
Income based – Super-premium – Mysore Sandal

Premium – Dove
Popular – Lux
Carbolic - Hamam
Targeting:
Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of
customers within that audience. It defines a segment of customers based on their unique characteristics and focuses solely on
serving them.
Instead of trying to reach an entire market, a brand uses target marketing to put their energy into connecting with a specific,
defined group within that market.
Evaluating the Market Segments:
In evaluating market segments, any company must look at 2 factors:
1. The segment’s overall structural attractiveness in terms of size, growth, profitability, scale economics and low risk
2. Company’s objectives and resources
Selecting the Market Segments:
Once a marketer has evaluated the different segments for their size, growth, and attractiveness, and found that they are
compatible with the company’s objectives and resources, the obvious step is to go far selecting the market segments. There are
five patterns of target market selection:
1. Single Segment Concentration:

In this case, the marketer prefers to go for single segment. In our hypothetical example, the company X uses this strategy when it
produces a typical product for a single type of market like plasma TV. In real life, companies like Allahabad Law Agency (only
law books) and BPB publications (only Computer books) are good examples. The company may adopt this strategy if it has
strong market position, greater knowledge about segment-specific-needs, specified reputation and probable leadership position.
Eg: Niche brands like Beardo.
2. Selective Segment Specialisation:
This is known as multistage coverage because different segments are sought to be captured by the company. The company
selects a number of segments each of which is attractive, potential and appropriate. There may be little or no synergy among the
segments, but this strategy has the advantage of diversifying the firm’s risk.
In our example, if the company X produces plasma TV as well as Walkman, the two different types of products obviously for
two different types of markets, then it can be cited as an example of Selective Segment Specialisation strategy. Bata shoes were
mostly in the popular segment until beginning of 1990s. Then, it turned itself into premium segment while still retaining the
appeal of popular segment. The taking of select segments of shoe market could not help Bata to gain full control of market. After
1995, it has come back again to the popular segment.
Eg: Wheel – Rin – Surf Excel ; for different income groups.
3. Market Specialisation:
Here the company takes up a particular market segment for supplying all relevant products to the target group. In our example,
the company X can implement Market Specialisation strategy by producing all sorts of home appliances like TV, washing
machine, refrigerator and micro oven for middle class people.
Here the chosen segment is the middle class and the firm specializes in that market only. Sudha Publications Pvt. Ltd. publishes
and sells books for the students and job-hunters that include competition books (CAT, IIT-JEE, IAS), general knowledge books
and personality development books.
Eg: Everything catering to organic food market.
4. Product Specialisation:
Product specialisation occurs when a company sells certain products to several different types of potential customers. In our
example, if the company X produces only a particular type of gizmo like toaster that is consumed by all type of people, they we
can say that the company uses Product Specialisation strategy. Product specialisation promises strong recognition of customer
within the product areas. Super Precision Components supply small nuts and screws for use in military, industry and daily use.
5. Full Coverage:
The company attempts to serve all customer groups with all the products they might need. Only very large firms can undertake a
full market coverage strategy that can be done in 2 ways:
i. Undifferentiated marketing or convergence:

The company ignores market segment differences and goes after the whole market with one market offer. It focuses on a basic
buyer need rather than on differences among buyers.
Eg: DantKanti, Patanjali
ii. Differentiated marketing or divergence:
The company operates in several market segments and designs different programmes for each segment. It creates more total
sales than the former. But the following costs would be higher:
Product modification cost, Manufacturing cost, Administrative cost, Inventory cost, Promotion cost
As both the sales and the costs are higher, the profitability for this strategy cannot be ascertained. Companies should be cautious
about over segmenting the market. If it happens, the company must seek counter segmentation to broaden the customer base.
Johnson & Johnson broadened its target market for its baby shampoo to include adults. It is very difficult to serve all segments of
the market. Big companies can go for full market coverage.
In our example, the company can use Full Coverage strategy if it has all sorts of electric appliance products for all types of
people. In carbonated soft drink market, Coca-Cola follows Full Market Coverage approach to their product-market matrix. They
have Thums-Up, Coca-Cola, Limca, Sprite, Fanta that are different tastes and are consumed by different types of people. The
company even made its entry into other drinks segments like mineral water (Kinley) and tea (Georgia).
Eg: Maruti’s Cars: Ciaz, Ertiga, WagonR, Alto, Swift, Baleno.
Positioning
Positioning based on Benefits
The two basic benefits are outlines below: I. Functional It is all about how the brand's functional benefits are conveyed. Some
examples are: - Lifebuoy: Kills the germs you cannot see - Apex Exterior Paint from Asian Paints: Time proof beauty - Dabur
Chavanprash; Immunity against infections - M-Seal: Seal all leaks - Pepsodent: 12 hour protection against germs - Fevicol: jod
jo tootega nahin
II.Emotional It is,all about how the customer feels about the brand. Some examples are: - Close-Up: Confident - Johnson &.
Johnson: Caring, Liril: Fresh
Positioning based on Usage Occasion and Time
Kwallty Walls: Post dinner treat....10 o'clock ,Babool: Perfect way to start the day....subah Babool ki to din tumhara ,Nescafe:
Great start to the morning
Positioning by Unique Attribute
Moov (special ingredient for backache) ,Dove (1/4 moisturizing, not a soap) ,Dermi cool (prickly heat power that cools)
Positioning by Competitor
Savlon (does not sting vs. Dettol) ,Annapurna salt (iodine that stays active post cooking vs Tata Salt)
Positioning based on Category
Some of the brands based on category positioning are shown below: - Tanishq: watches sold as jewellery titan raga,Daniel
wellington,Vaseline: petroleum jelly sold as lip salve and moisturizer - Waterbury's Compound: iron supplement for protection
from cough and cold ,Sugar free: It is a sugar free sweetener, generally sold to sugar patients through drug stores. Nowadays it is
being positioned as weight control device for figure conscious segment being sold through supermarkets
User or user group
Johnson and Johnson for baby products(no more tears)
Example: Brand-Close Up (Company. Hindustan Unilever Limited)
This product was positioned by the company as the "Youth Brand". The product was launched in the year 1975 and was the first
gel toothpaste in the market. When the product was launched, the market was dominated by the Colgate Dental Cream and this
product changed the entire market scenario. It also gave a run for its competitor and compelled the competitor to also adopt some
new strategies. The insight for this product was that people are conscious about their breath and want to get close with each other
with confidence. Based on this insight the brand was positioned on the Fresh Breath platform. The campaign was executed
showing "Happy couples having fun together". Even film Theatres had corners called as "Close-Up Corners". The brand had the
aspirational persona in it. The product was again re-launched in the year 2004. At that time both Pepsodent and Colgate were
very close competitors to each other. Close Up launched a huge number of varieties most of which failed in the market. The
variants like Oxy fresh and Eucalyptus Blue failed in the market. HLL decided that only the Lemon variant will continue. The
reason behind the failure of variant is because Close Up is a sensorial brand. And in such kind of brands, variants will not work.
In categories which are more rational, variants will work. The toughest competition for the product was from that from Colgate
with their gel variant. Close Up had to reinvent to keep the category that it created. This is a brand which created awareness
among the traditional and not so beauty conscious Indians to think and concentrate on how they look and also make them
understand that how their teeth look also is very important.
BCG MATRIX OF HUL
1) Cash Cows
The cornerstone of any multi-product business, cash cows are products which are having a high market share in a low growing
market. As the market is not growing, that cash cow gains the maximum advantage by generating maximum revenue due to its
high market share for BCG Matrix. Cashcow of HUL is sunsilk with 15.8% market share and with growth of 12% whereas
competitor Pantene with 9.4% market share
2) Star
Stars are products with high market growth rate but low market share. Thus, there is a lot of competition in this segment.
Unlike cash cows, Stars cannot be complacent when they are top on because they can immediately be overtaken by another
company which capitalizes on the market growth rate. However, if the strategies are successful, a Star can become a cash cow in
the long run.In case of HUL AXE Deodorant with market share of 8% and growth rate of 41.5% whereas competitors Fogg and
Engage have a market share of 10.5%
3) Question Marks
Question marks are products which may have high market share and high market growth, but the market of the product is in
question – whether it will grow further or decline. Kissan Jam having market share of 65% and growth rate is also high whereas
competitor mapro has 21% market share.
4) Dogs
Products are classified as dogs when they have low market share and low growth rate. Thus these products neither generate high
amount of cash nor require higher investments. Taaza as overall market share of HUL in tea is 27.7% among which also Red label
has maximum and growth rate is also very low.
ANS-OFF MATRIX-Apple
MARKET DEVELOPMENT (MERGER) DIVERSIFICATION(NEW INDUSTRY)
Here, you're targeting new markets, or new areas of This strategy is risky: there's often little scope
your existing market. You're trying to sell more of for using existing expertise or for achieving
the same things to different people. Here you might: economies of scale, because you are trying to
sell completely different products or services to
● Target different geographical markets at home different customers
or abroad. Conduct a PEST Analysis or use
the CAGE Distance Framework to identify Beyond the opportunity to expand your
opportunities and threats in this different market. business, the main advantage
● Use different sales channels, such as online or of diversification is that, should one business
direct sales, if you are currently selling through suffer from adverse circumstances, another may
agents or intermediaries. not be affected.
● Use Market Segmentation to target different

groups of people, perhaps with different age,
gender or demographic profiles from your usual In 2007 apple launched its first iphone which
customers. was totally new with specifications different
● Use the marketing mix to understand how to from the normal phones(ios).
reposition your product.
Apple created new product for its existing customer

such as ipods,this was the 1st entertainment tool
from apple for their customers to use it for all the
time to listen to music.
Market Penetration [PROMOTIONS] Product Development [VARIATION]
With this approach, you're trying to sell more of the Here, you're selling different products to the
same things to the same market. Here you might: same people, so you might:
● Develop a new marketing strategy to ● Extend your product by producing different

encourage more people to choose your product, variants, or repackage existing products.
or to use more of it.
● Develop related products or services.
● Introduce a loyalty scheme.
● In a service industry, shorten your time to
● Launch price or other special offer promotions.
market, or improve customer service or
● Increase your sales force's activities. quality.
Apple created the apple watch which was totally
● Use the Boston Matrix to decide which
new segment for them and entered into smart
products warrant further investment, and which
watches segment.
should be disregarded.
● Buy a competitor company (particularly in
mature markets).
Apple gave a promotion wherein they gave family

discounts for buying an iphone.
Market Development [MERGER] Diversification [NEW INDUSTRY]
PORTERS FIVE FORCES
The Five Forces can help explain these kind of phenomena as well as help:
✔ understand your industry of interest

✔ identify attractive vs less attractive industries/markets
✔ identify opportunities and risks
✔ how profits within an industry will be distributed
✔ extrapolate industry trends & anticipate changing trends
UBER’s Porter’s Five Forces Analysis:-
(1) Bargaining Power of Buyers (=riders)
● Bargaining power of customers: reasonably high at this stage as there is strong ride-hailing competition, alternate means
of transports and taxis. Beyond a certain market share, Uber may have a better pricing position (and in any case, they
may decide to grow through complementary offerings)
● Switching barriers for the demand side: are low. Similar to the drivers, customers are multi-homing. But this may
change if the industry ends up becoming a winner-takes-(almost)-all. Due to the indirect network effects, waiting times
would increase for competing platforms
● Value proposition for customers: are compelling. Lower transaction and search costs, shorter waiting times and lower
costs. This is in comparison to other means of transport. But in comparison to other ride-hailing companies there is very
little differentiation, thus price will play a big role
● Buyer information availability: high. Those people who know about Uber also know Lyft and other ride-hailing
companies
● Power of distribution channels: low. In this case, we are talking about the app and all competing apps can be equally
easily installed. All competing ride-hailing can be used equally easily. If Uber becomes the dominant player due to the
network effects then they become the predominant distribution channel for all (or the majority) of hailed rides
amplifying their advantage
(2) Bargaining Power of Suppliers (=drivers)
● Bargaining power of supply side: is weak at this stage as there is no unionisation, something that Uber is closely
monitoring. I have not yet seen elasticity data for the supply side, i.e. how much higher would hourly rates need to be to
attract X number of new drivers? A concept by professor Judy Chevalier in an Uber study, called “reservation wage,”
though is a good starting point. But there is lots of discussion on public level of Uber underpaying drivers (Uber of
course states the opposite). This public perception may strengthen the bargaining power of drivers, esp if they are to be
considered as employees and to receive entitlements
● Switching costs of the supply side: are low. Some drivers are multi-homing by driving for Uber and Lyft (or other ride-
hailing companies) at different times. But given hourly wages are similar (and there is no reported shortage of drivers),
there is no significant bargaining power gain for drivers at this stage
● Value proposition for supply side: compelling. Due to the indirect network effects and the scale that Uber has reached
in some cities, they can offer low idle times which lead to comparable per hour wages as taxi drivers but in less absolute
time on the street. This may also increase switching costs for drivers if Uber takes a larger market share
● Barriers to entry for the supply side: It is easy to join Uber and other ride-hailing companies as a driver. But the lower
switching costs make it easier for new drivers to join (no multi-year apprenticeship, certificates, etc) effectively
reducing the bargaining power of the supply side and – interestingly – increasing the value proposition for new joiners
at the same time.
(3) Threat of new entrants
● Barriers to entry:
On the surface, they are low. Anyone can program an app. But will you be able to scale it up?
Any new entrant needs to get to critical mass. This is often costly in terms of acquiring the supply side and the demand
side
Uber has spent billions on demand generation. Customer acquisition costs are very high as seen in the battle with Didi.
Will investors be willing to fork out capital for a new entrant to fight an already established brand like Uber?
Will a new entrant be able to get to critical mass on the driver side to provide a comparable value proposition (e.g. low
waiting times)?
Could new entrants come from unexpected areas? Maybe Apple, Microsoft, Ford, Toyota, Volkswagen or other
companies that already have a huge customer bases and a brand who can mobilise them at low marginal costs? Possible,
but Uber is moving into many adjacent/complementary areas, such as freight, meal delivery that may lead to better asset
utilisation which other players may not want (or be able) to enter.
● Economies of scale:
Can Uber scale up in a way that they have lower unit costs that makes it very hard for new entrants? The answer likely
is yes
Can this help Uber increase their lead? Same drivers could work for UberEATS or other conceivable ideas (“the Uber
of X”)
If they are able to negotiate better terms for operational, maintenance and servicing for their drivers, this is something
that can bring unit cost further down
Some of the economies of scale will pertain even with driverless cars (and most importantly the indirect network
effects)
● Brand equity: while tarnished temporarily, it is still a major asset and in the long-term
● Expected retaliatory action: no doubt, Uber will fight hard against new entrants as they have fought hard in the cities
they have entered. This will discourage investors to support new entrants in markets where Uber is strong (mainly the
US).
(4) Threat of substitutes

● Car sharing companies such as Zipcar
● Self-driving cars: many people debate what self-driving cars will mean for the entire transport industry. I am not going
to join this speculation. As you certainly know, Uber is investing a lot in self-driving technology themselves
● Better public transport: seems very unlikely. I have not heard of any large cities with any success stories on this front
(sadly)
● More people working from home: it is hard to assess if mobility requirements will reduce due to technological
penetration but worth keeping an eye on
Bike sharing can become a better option in cities that are growing fast and traffic congestion becomes an issue.
(5) Rivalry among competitors
● Rivalry is stiff. Though there is no as large player if you look globally, there are many strong players in various
geographies:
Ola in India,
Didi has managed to fend Uber off in China,
Lyft is now concentrating its resources to the US
● Other competitors are emerging in various locations
A lot of locally-focused entrants may dilute Uber’s strength (i.e. financial resources) enough to capture enough market
share in those regions
● It is likely that the competition will have to be taken very serious by Uber and it may keep a cap on prices and possibly
even on Uber’s pace of growth
● Uber itself is expanding into several adjacent areas, such as freight, food delivery, self-driving cars and some other.
There are complementary, i.e. synergetic, effects that can increase Uber’s competitive moat.
Product life cycle-Kodak

The product life cycle is broken into four stages: introduction, growth, maturity, and decline. This concept is used by
management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce
prices, expand to new markets, or redesign packaging.
Stage 1- introduction: Start up in the late 80’s the Kodak film roll was unique and niche in the market. Almost
everybody owned their camera together with a film roll. At the time, it cost them a lot to start up with their new product.
They made advertisements, research and development to implement the trust and interest among the customers. The
capital they invested was very high compared to the revenue or profit they gain. But the product life cycle kept
increasing.
Stage 2- Growth in this stage: Kodak film grew rapidly in term of sales and profits. At this stage the product was trusted
by everyone and used by everybody. Almost everyone had started using the film roll. Many people were relying on
Kodak film roll for any vacations and events that they wanted to take pictures of. The strong growth of Kodak film
made them invest more money in promotional activities to maximize their growth stage.
Stage 3- Maturity: The camera and rolls didn’t really go through a large stage of maturity though, as soon as new
technology came in, which at the time was Digital cameras, the sales declined sharply and instead of direct competition
for Kodak, competitors had now adopted a totally different, yet same product, which killed Kodak’s offerings sooner
than they could say…Click!
Stage 4- Decline: with the on-set of digital cameras by Sony, Fujifilm and other companies, the market for Kodak was
quickly eaten away and they never gained it back again.
CONSUMER BEHAVIOUR
Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas,
goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the
underlying motives for those actions.
The various factors that influence the consumer behaviour are as follows:
a. Marketing factors such as product design, price, promotion, packaging, positioning and dis-tribution.
b. Personal factors such as age, gender, education and income level.
c. Psychological factors such as buying motives, perception of the product and attitudes towards the product.
d. Situational factors such as physical surroundings at the time of purchase, social surroundings and time factor.
e. Social factors such as social status, reference groups and family.
f. Cultural factors, such as religion, social class—caste and sub-castes.
Types of Consumers:
Seasonal Consumers
Many consumers purchase and consume products on a seasonal basis. They shop at certain times when the need for them arises.
Cash flow for a business selling seasonal products can be very difficult. Long periods of the year may be without sales, so it is
vital to quickly and effectively target seasonal consumers.
Eg: Umbrellas during the rainy season; Cold or icy drinks during the hot seasons; Christmas trees and decorations in December;
Beach wear in summer.
Personal Consumers
These types of consumers are individual consumers who purchase goods for the sole purpose of personal, family or household
use.
Eg: Going to the supermarket and shopping for goods which are to be used in the house; Purchasing a car that you intend to use
personally; Purchasing clothes for personal use from a clothing mall; Purchasing a mobile phone for personal communication.
Organizational Consumer
Organizational consumers purchase products for organizations, governments or businesses, They often buy in bulk and may
place long-term recurring orders. For this reason, an organizational consumer is generally highly prized and sought after.
Products and services sold to organizational consumers are often required to meet very strict standards. They may need to be
adapted to meet the specific requirements of the buyer, and specific prices are negotiated.
Impulse Buyers
Impulse buyers are consumers who make unplanned buying decisions. Impulse buyers make swift buying decisions and
immediately purchase when they 'connect' with the product and its features. There is often some kind of emotional appeal.
Eg: Chocolates near the check-out counter; Cookies at eye level on the shelf; Bright, eye-catching novelty items where children
can spot them.
Need Based Consumers
Need based consumers are those types of consumers who buy goods and services when they need them and not any other time.
Many of the products in a hardware store, for instance, are sold to need based consumers. A need for a certain product will
necessitate buying it because it is needed immediately for a certain purpose. The challenge for marketers is to create a sense of
'need' to promote the sale of products and services.
Eg: Paint when a wooden house needs to be protected from the weather; Light bulbs when we need to see at night; Heaters or
air-conditioning if we need to be comfortable in our homes; Life insurance sales increase if we are convinced we need to be sure
our families are taken care of if we die.
Discount Driven Consumers
Discount driven consumers are the type of consumers who purchase goods and services primarily for the discounts on offer.
They may not engage in any buying activity until they hear or see large discounts being offered on products they like. Discount
driven buyers are price sensitive and would rather wait to purchase products when they come with discounts as opposed to when
they are sold for full price. Coupons and stock-take sales are popular with this type of consumer.
Habitual Consumer
Habitual consumers are those who feel compelled to use certain brands or types of goods. Marketers work hard to create brand
loyalty among this type of consumer. It may be as simple as always choosing the same brand of deodorant, the same brand of
soda, or shopping in the same store for groceries or clothes.
Buying Process:
This step is also known as recognizing of unmet need. The need is a source or force of buying behaviour. Buying problem arises
only when there is unmet need or problem is recognized. Need or problem impels an individual to act or to buy the product.
Buyer senses a difference between his actual state (physical and mental) and a desired state. The need can be triggered by
internal or external stimuli. Internal stimuli include basic or normal needs – hunger, thirst, sex, or comfort; while external stimuli
include external forces, for instance, when an individual watch a new brand car, he desires to buy it. Marketer must identify the
circumstances that trigger a particular need. He can collect information from a number of consumers regarding how stimuli spark
an interest in products. Based on information, he can develop marketing strategies to trigger consumer interest.
Interested consumer will try to seek information. Now, he will read newspapers and magazines, watch television, visit showroom
or dealer, contact salesman, discuss with friends and relatives, and try all the possible sources of information. Mostly, the
consumer can try one or more of following sources of information:
Advertising, salesmen, dealers, package, trade show, display, and exhibition are dominant commercial sources.
Mass media (radio, TV, newspapers, magazines, cinema, etc.), consumer- rating agencies, etc., are main public sources.
iv. Experimental Sources: They include handling, examining, testing, or using the product. Selection of sources depends upon
personal characteristics, types of products, and capacity and reliability of sources. Each information source performs different
functions in influencing buying decision. By gathering information from relevant sources, the consumer can learn about different
products and brands available in the market.
Note that consumer will not collect detail information on all the brands available in the market. He scrutinizes all the brands in
sequence, like total (brands) set to awareness set to affordable set, and to choice set. Consumer collects information only on
limited brands, say, choice set. Marketer must try to get his brand into the prospects’ awareness set and choice set. Moreover, the
company should identify sources and their relative importance. Company must ask the consumers regarding types of sources
they exercise. They can elicit valuable information about sources they normally use and their relative value. On that basis,
In the former stage, the consumer has collected information about certain brands. Now, he undergoes evaluation of brands. He
cannot buy all of them. Normally, he selects the best one, the brand that offers maximum satisfaction. Here, he evaluates
competitive brands to judge which one is the best, the most attractive. Evaluation calls for evaluating various alternatives with
certain choice criteria. Following criteria are considered while evaluating alternatives
vi. Product-related services offered by the brands, such as after-sales services, warrantee, and free installation
Different criteria are used for different products. For example, if a person wants to purchase a motorbike out of Enfield Bullet
350; TVS Victor, TVS Centra, Suzuki Ferro; Hero Honda Spender, Ambition, and CBZ; Kawasaki Bajaj Boxer, Pulsar and
Caliber; LML Freedom, etc., he will consider following criteria:
i. Price
vi. Speed per hour
x. Safety
xi. Resale value
The brand that meets most of the above conditions reasonably is more likely to be preferred. Marketer should highlight superior
features of his brand. Some companies also advertise comparative table to help consumers evaluate various brands. For example,
Yamaha, Maruti, and Hyundai provide comparative table in newspapers to show how the bike/car is superior to other brands.
This is the stage when the consumer prefers one, the most promising band, out of several brands. The former stage helps
consumers evaluate various brands in the choice set. The brand that offers maximum benefits or satisfaction is preferred. Simply,
the most attractive brand, that can offer more benefits in relation to price paid, is selected by comparing one brand with others.
Comparison shows superiority/inferiority of the brands.
Now, consumer makes up his mind to purchase the most preferred brand. However, three factors further affect whether buying
intension result into actual purchase. More clearly, the consumer’ decision to avoid, modify, or postpone a purchase decision is
influenced by these factors. The first factor is attitudes of others. The impact of other persons’ attitudes depends on degree of
their negative attitudes toward the consumer’s preferred brand, and consumer’s degree of compliance with other persons’
wishes. The second factor is unanticipated situational factors. Purchase intension may change due to certain unanticipated
situational factors like price hike, loss of job, family income, major medical expenses, non-availability of the preferred brand, or
such similar factors. The third and the last factor is consumer’s perceived risk. Degree of risk depends on price, attribute
uncertainty, entry of a new superior product, and his self-confidence. Sub-decisions in Purchase Decision:
i. Brand Decision:

Consumer buys the product with certain expectations. Though he decides very systematically, there is no guarantee of a
complete satisfaction. There is always possibility of variation between the expected level of satisfaction and the actual
satisfaction. His subsequent behaviour is influenced by degree of satisfaction/dissatisfaction. Marketer must monitor the post-
purchase experience of the buyers that includes:
i. Initiator
ii. Influencer:
iii. Decider:
A person who decides on any component of a buying decision; whether to buy, what to buy, how to buy, or where to buy
iv. Buyer:
v. User:

A company needs to identify these roles because they have implications for designing the product, determining messages, arid
allocating the promotional budget.
PRODUCT MIX-HUL
The entire product range of HUL can be visualised in terms of the following of the following segments:
1. FOOD BRANDS
2. HOME CARE BRANDS
3. PERSONAL CARE BRANDS
FOOD BRAND SEGMENT: HUL is one of India’s leading food companies. It’s passion for understanding what people want
and need from their food - and what they love about it - makes its brands a popular choice. The category that this segment tends
to cover includes
1. TEA- A. 3 ROSES: The 3 Roses tea of HUL is known for its perfect colour, strength and aroma that create a perfect tea
moment. Being marketed while keeping in mind the couples, it portrays itself as an essential drink with which they can
spend time talking about the everyday issues that matter to them.
Key facts  3 Roses is a 30 year old regional brand and is the market leader in Tamil Nadu.  It is one of the largest FMCG brands
in Tamil Nadu across categories.  It has a strong presence in both in home and out of home segments.  It has two
functionally differentiated variants - 3 Roses Natural Care and 3 Roses Mind Sharp. Rose range: 3 Roses Regular 3 Roses
Natural Care 3 Roses Mind Sharp
B. RED LABEL: Red Label is for the housewife who seeks to bring her family together over a cup of great Red Label with its
perfect strength taste and colour.
Key facts  Red Label is a 107 year old brand and has tremendous equity and heritage in the Indian market.  It is the second largest
tea brand in the country.  The oldest and largest brand in the Brooke Bond portfolio in India  It has both leaf and dust
variants, as well as a health and immunity variant - Red Label Natural Care. Red has also launched a premium variant
under the name ‘Red Special’ Range Red Label 250gms Red Label Dust, Red Label Natural Care, Red Label Special
C. TAAZA: Brooke Bond Taaza entered the lives of the contemporary Indian housewife in the 1990s. And over the years, Taaza has
found a place, not just in her home but also in her heart. Taaza is a unique and refreshing blend of tea that's sprinkled with
fresh green tea leaves. It's her daily cup of joy that helps her to refresh and connect with her inner self and aspirations.
Key facts  Taaza is a 20 year old brand with strong presence in North, West and Eastern India. 21  It is the 3rd largest tea brand in
the country with a portfolio spanning in both leaf and dust segments.  It has a strong presence in the out of home segment
in South India. Range:Taaza Leaf, Taaza Dust
D. TAJ MAHAL: Brooke Bond Taj Mahal- India’s best tea since 1966. For over four decades, Taj Mahal has been the gold
standard of tea in India. It has been a pioneer of innovations in the Indian tea market. Taj Mahal was the first to introduce
tea bags and also the first to usher-in new formats like instant tea and dessert tea. Taj Mahal is special because it is made
from the rarest and the best tea leaves.
Key facts  Taj Mahal was launched in 1966 by Brooke Bond.  Ustad Zakir Hussain, the tabla maestro was the brands ambassador
for over a decade, exemplifying both discernment as well as the pursuit of excellence.  Taj Mahal is the most premium
brand of tea in the Indian market.  Since 2006, Saif Ali Khan is the brand ambassador. Range:Taj Mahal,Taj Mahal
Teabags,Taj Mahal Flavoured Tea Bags
E. LIPTON: Lipton Yellow Label is a premium, full-bodied tea, made out of the finest teas, perfect for the ‘healthy’ Indian .Lipton
Yellow Label has a unique blend that has 22 high levels of natural Theanine, which along with other goodness of tea can
help you clear your mind. The range also contains, Lipton Clear Green tea, which combines the goodness of antioxidants
and purifying effect of water to help cleanse your body naturally.
Key facts- Lipton Yellow Label Lipton Clear Green Tea Lipton Darjeeling Tea F. Brooke Bond Sehatmand: The primary reason to
introduce ‘Brooke Bond Sehatmand’, a Vitamin Fortified Tea was to allow people to have access to a healthier yet
affordable product. Three Cups of BB Sehatmand guarantees delivery of 50 % of the Recommended Dietary Allowance
(RDA) of added B Vitamins, required by a person.
2. COFFEE: A. BRU: Bru has been on a constant endeavour to bring better products and formats to the consumer with every
passing year. With the launch of Cappuccino in 2007, Bru pioneered the launch of instant coffee premixes in India for the
youth. Bru’s specially selected and freshly roasted coffee beans offer a great cup of aromatic coffee that makes those
moments of genuine warmth and happiness even more special.
Key Facts  Number 1 Coffee brand in India  Unilever's only Coffee brand  Enjoys a rich heritage, came into existence in 1962
under the brand name Deluxe Green Label  Consistently offering better and newer products to the consumer through
improved packaging solutions and innovative product formats Bru Roast Bru Instant Bru Ice cappuccino Bru hot
cappuccino and Ground.
3. KISSAN: Kissan is being projected to be the brand which will help dissolve tension between mother and the family during
informal good food moments. Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan, good
food is loved not shoved! Key facts  Kissan is in its 62nd year of its existence in India.  Category leaders in India. 24
Kissan Jam Kissan Squashes Kissan Tomato Ketchup Pichkoo Kissan Squeezo Ketchup Mango Pineapple
Strawberry
4. MODERN: Modern has a heritage of over 42 years and has presence across India. Modern was the first brand to operate a fully
mechanised bakery. Modern has evolved to keep in step with the changing needs of consumers by constantly renovating its
offering to make it relevant for all segments and to meet various needs, occasions and usages by consumers. Key facts 
India’s No 1 Bread  Touches the lives of 3 million families Brown Bread Atta Shakti Modern - Multi-seed bread
Modern
5. READY TO COOK: The ready to cook segment can be further divided into: (a) KNOR SOUPS: The Knorr range of soups is
available in a number of tasty and exciting varieties. There is a flavour to literally suit every taste palate; the Classic range
of soups with flavours like Thick Tomato, Mixed Vegetable Chicken Delite and Tomato Twisty Pasta, the Oriental range
with flavours like Sweet Corn Vegetable, Sweet Corn Chicken and Hot n Sour and the Indian range with flavours like
Tomato Makhni and Corn Mast Masala. (b) KNOR MEAL MAKER RANGE: Knorr Ready to Cook helps the consumer
make her family's favourite dishes at home and helps her get restaurant like taste at home itself. It comes in the Indian
Ready to Cook range and Chinese Ready to Cook range. Key facts  Knorr in India is generic to soups.  Knorr is the
largest soup brand in India and has a lion’s share of the soup market in India – 70%  All Knorr products have no added
preservatives and are a healthy choice option. Range-Classic Soups,Chinese Soups Indian Soups, Indian Meal Maker,
Soupy Noodles Range
6. KWALITY WALLS: Kwality Wall’s, the brand with a big heart, offers a range of delightful frozen desserts that bring smiles to
the faces of millions of Indians – kids, teens and adults.
Key facts  Unilever is the world's biggest ice cream manufacturer, operating under the Heartbrand.  Heartbrand products are sold
in more than 40 countries worldwide
II. HOME CARE BRAND SEGMENT: 1. ACTIVE WHEEL: India’s largest detergent brand, Wheel, aims to bring delight back
into the lives of lacks of women across India, by giving them a magical wash experience of lemons and thousands of
flowers. Key Facts  The largest selling detergent brand in India.  Used by over 1 in 2 households in India  Range Blue
Bar Lemon & Orange Lemon & Jasmine Green Bar
2. RIN: It plays an integral part in enabling us to look good by providing demonstrably superior whites, giving us the confidence to
realize our ambitions. Key Facts  Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic.  Rin
powder was launched in 1994 as Rin Power White  Rin Matic for washing machines, launched in July 2008. Range-Rin
Bar Rin Powder Rin Jasmine Powder Rin Matic
3. SURF EXCEL: A pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded itself over the years, to
answer the constantly changing washing needs of the Indian homemaker. Range Quick Wash Detergent Powder Blue
Detergent Powder Detergent Bar Gentle Wash Matic
III. PERSONAL CARE BRAND SEGMENT: 1. SOAP: The soap segment of HUL comprises of various brands catering to
different customer base. A. BREEZE: Breeze makes use of a new revolutionary global technology which enhances the
impact of world class perfumes in a much larger way, apart from bringing out the goodness of glycerine.Key facts 
Launched in 1988 as a family beauty soap with the promise of a fresh feeling of nature  Comes in 5 attractive variants
Lemon Twist, Rose Mallika, Sandal Sparsh, Rajni gandha & Morning Muskaan
B. LIRIL: New Liril 2000 makes every part of your skin come alive with freshness. Its combination of lime extracts and tea tree oil
freshens and cleanses skin. Liril keeps skin germ-free and so beautiful that you cannot resist touching it. Key facts  One of
the oldest soap brands in India  A brand that has been consistent in bringing alive freshness  A brand that has managed to
create breakthrough advertising over the years Range Liril 2000 soap
C. LUX: Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Key facts  The
brand name Lux has been derived from Luxury  Since Leela Chitnis in 1929, Bollywood beauties throughout ages have
appeared in Lux commercials. Till date nearly 50 Bollywood heroines have featured in Lux ads. Range Lux Strawberry
Lux Peach Lux Purple Lotus Lux International
D. LIFEBUOY: It is an undisputed market leader for 112 years, has a compelling vision “to make 5 billion people across the world,
feel safe and secure by meeting their personal care hygiene & health needs” Key facts  Undisputed Leader in the soaps
market of India, with 18.4% share.  Range Core Soaps Handwash,SkinGuard
E. PEARS: With the goodness of glycerine & natural oils, Pears is trusted for being gentle, and is recommended by doctors and
paediatricians worldwide. It keeps your skin soft and smiling with innocence. It is so pure that you can actually see through
it Key facts  Pears was first made in 1789 by Andrew Pears in London. This is from where it derived its name!  The most
famous Pears 'face' is 'Bubbles', from an original painting by Sir John Everett Millais in 1866. The painting later became to
be the very first advertising on the brand!  Pears is the world’s first registered brand and it is in existence continuously
since then. Range Pears Pure & Gentle Pears Germ Shield Pears Oil Clear
2. DOVE: Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a keeper of promises and has
given real products to women world over. To help you enjoy your own brand of beauty, Dove provides a wide range of
personal care, hair care, skin care and deodorants Key facts  Dove has its footprint in 80 countries worldwide with a range
of superior products from bar, lotions, body washes, face care and creams.  It is the leading bar brand in UK, US and
Canada.  Fastest growing hair category brand in India Range Dove Bathing range Dove Hair Care range Dove Deodorants
Range
3. ORAL CARE: HUL owns two major brands in the oral care segment with toothpaste as its major product. These are; A.
PEPSODENT: It has a range of toothpastes and toothbrushes that could take care of specific oral care needs. Pepsodent
toothpaste fights germs to protect teeth against cavities and gives strong teeth, fresh breath and healthy gums. Range
Pepsodent Germicheck+ Pepsodent Whitening Pepsodent 2in1 Center Fresh Pepsodent Gum Care Pepsodent
Sensitive Pepsodent Kids
B. CLOSEUP: The brand has always had a youthful communication, one that has always been unique and fun; using music, song
and dance to get its message across. It is aimed at every person who is young at heart. 32 Key facts  First HUL offering in
the oral care category  First gel toothpaste in India – launched in 1980  Market leader in the gel-segment for almost 3
decades  Making stars out of models (Present-day stars like John Abraham, Deepika Padukone, Salman Khan, etc. are
some of many who have been models of Closeup in the early days of their careers) Range Closeup Red Lemon Mint
Menthol Milk Calcium
4. HAIR CARE: The hair care segment constitutes the major brands known throughout the hair industry, A. SUNSILK: The
Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing,
nourishing and manageability that gives a 20 something girl the confidence to express herself. Key facts  Number 1 in
Asia, Latin America and the Middle East  Sales of more than €1 billion a year.  Recent Awards: Holds the Guinness
World Record for the most heads of hair washed and styled in one day.  Range Soft & Smooth Thick & Long Damaged
Repair Hair Fall Solution Stunning Black Shine Anti Dandruff
B. CLINIC PLUS: For most Indians, the first interaction with shampoos has been Clinic Plus. Over time, it has evolved to keep in
step with the changing needs of consumers by constantly renovating its offering to make sure it is the best solution for the
eternal desire of having long hair for both mom and daughters Key facts  The largest selling Shampoo brand in India. 
The most widely distributed Shampoo brand in India Range Strong and Long Health Strong and Long Natural Strong
and Long Anti Dandruff
5. SKIN CARE: The skin care segment caters to the beauty of the women and men by providing products ranging from whiteness
cream to anti marks. A. PONDS: Pond’s, has been listening to women’s needs and desires for 150 years and this has
enabled us to deliver new products customised to their needs. Pond’s accompanies them on their journey to enhance the
beauty of their skin Range Age Miracle Flawless White Perfect White Beauty
B. FAIR & LOVELY: Its skin-lightening technology is known to be the best in the world! However, this hasn’t stopped the brand
from innovating further to pioneer the development of cutting-edge fairness solutions. Key facts  Developed in 1975, Fair
& Lovely is the world’s first fairness cream.  It contains no bleach or harmful ingredients. Instead, it provides visible
fairness in a safe and reversible process.  In 2004, it was identified as a Super Brand. Range Multivitamin Ayurvedic
Balance Antimarks Menz active Winter Fairness.
Market Nicher:
End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who
want a long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store
that sells school supplies, kitchen goods, and gardening tools, and many more things for the
lefties.
Market challenger
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi
Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “
Sampoorna” for the rural people and outshine the other coloured TV players who had a less
focus on these areas.
Encirclement Attack: The FMCG industry applies this attack more aggressively with the
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the
intention to harass each other. When the coca-cola was the official partner of the world cup,
the Pepsi counter-attacked it by using the punch line “ Nothing official about it”.
Market leader
Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also
in marketing they enjoy beverage of world-class marketing is what makes Coca-Cola the
world leader in creative communication.
1. Position Defence: For example, HUL increased its ad-spend on Clinic Plus
and Sun silk shampoos and gave heavy promotions through price reduction.
2. Flanking Defence: An ideal example is how HUL successfully nourished its
first Rs.100 crore Indian-made brand Vim in a competitive dish wash market.
It was able to check the attack of competitors through product innovation,
attractive public campaigns, road shows and public relations.
3. Pre-emptive Defence: For example, Titan launched more brands and sub-
brands to corner the market share of HMT watches in the early 1990s.
4. Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in
Tamil Nadu markets, TVS decided to expand its coverage to Ceat tyre’s hub
in the north and west of India through innovative campaigns like road rallies,
road shows and attractive public campaigns.
5. Mobile Defence: For instance, a five-star hotel can become a foreign
exchange dealer, inbound and outbound tour operator, flouriest and so on.
Such diversification into related areas comes under mobile defence
strategies.
6. Contraction Defence: For example, HUL decided to concentrate on its core
business areas, that is, soaps and detergents, and has emerged as the clear
leader in the toilet industry.
Market follower
higher competition.
cloning.
Sushmita Valecha - 119
Consumer and customer-
Product: diapers
When a mother purchases diapersfor her child
Mother: customer
Child: consumer
New Product Development – Tata Nano
Idea Generation:
• To create a safe, affordable and all-weather form of transport for families.
• To create an option for people who want to move from a 2-wheeler to 4-wheeler – at the price of a
2-wheeler
Idea Screening:
• A scooter with 2 extra wheels at the back?
• An auto rickshaw with 4 wheels
• 4-wheeler car made of engineering plastic
• But the market demand was for a car and not a scooter
• When people were asked as to why a 4-wheeler was an aspiration – they said that they would have
• 4-wheeler had an emotional appeal, not just a practical one
• Establish a factory in a tax-free zone

• Get the tax advantage on infrastructure
• Get the suppliers to establish a base near the factory
• Get special concessions from state government
• Design inputs from institute of Development in Automotive Engineering, Italy
• Constant design changes
• Design adaption from Daewoo Matiz and Tata Indica
• 37 patents associated with the design of Nano
• The nano is constructed of components that can be built and shipped separately to be assembled in a
Test marketing:
• Crash testing
• Testing on torture trucks
Commercialization:
• Launch the product
• Produce and place advertisements
• Fill the distribution pipeline.
Pricing Strategy:
Premium pricing – Porche in cars and Gillete in blades
Penetration pricing – Mobile phones rates in India - Jio, Housing loans
Economy pricing – Friendly wash detergents; Nirma
Skimming strategy – LG (Door cooling), Samsung (Flip Cover)

Psychological pricing – Roadster jeans at Rs698 rather than Rs700
Product bundle pricing – Kurkure with Ice tea, Toothpaste with Toothbrush
Segmentation pricing – HUL; Hamam (economic), Lux (popular), Dove (premium)
Captive Product pricing – Kodak, HP printers
Two-part pricing – Essel World tickets (few compulsory adventures the rest to be priced additional)
Distribution Strategies –
Indirect distribution: Pepsi or Nestle; have multiple distribution channels
Direct distribution: Tanishq jewellary
Intensive distribution: Jio (data service)
Selective distribution: Zara; 2-3 outlets in an urban city
Exclusive distribution: Lamborgini; one outlet in 5-7 cities
Advertisement insights
1) Liril Soap
The insight is that earlier women used to egt time only while bathing, therefore ad showed it and she
forgets all her tension
2) Idea - Honey Bunny
Idea was restricted to only a certain area, after reaching pan India, the perception issue was idea became a
national network
3) Airtel
It was one of the top most companies, therefore to grow telecomm was not the only way forward. They
came up with data sharing which focused on youth - “Jo tera hai woh mera hai”
4) ICICI
“Bande achhe hein”
There was a time where they used to celebrate Women, but nothing for men even after their selfless service
and care.
Thus, “Jo zimmedari nibhate hein, vo jjattate nahi hai”
5) Coca-Cola
Out of the 4 P’s, place is what Coca-Cola chose - “Thanda matlab Coca-Cola” | Hyderabad - Distribution
through paanwala, because highest penetration
BCG Matrix –
Ansoff Matrix –
Porter’s 5 Forces – Uber
STDP -
Maggie(Nestle):
Segmentation: Geographic: urban, semi urban
Psychographic: lifestyle and eating habits of Indian consumer
Target audience: busy life schedule, kids, youths and working women
Positioning: positioned as to get fast relief from hunger. Positioned their products with slogans: “2 min
noodles”.
Yippee Noodles(ITC Ltd.): Sunfeast yippee
Segmentation: geography: urban, semi urban, rural market penetration through ITC distribution channel
Psychographic: health conscious
Demographic: youngsters
Target audience: working individuals , mothers as they want healthy food for their children
Positioning: No lumping even after 30 min of cooking . available in round cakes to fit in the cooking
vessels.
Atta Noodles(Patanjali):
Segmentation: Geography: pan India
Target audience: all generations both young and old health conscious people in India, family members
Positioning: Swadeshi noodles - healthy indegineous, ayurvedic. Cheaper and healthier with higher % of
wheat and are made from rice bran oil and taste maker made of dehydrated vegetables and ayurvedic
ingredients from hyderabad.
Knor soupy Noodles(Unilever)
Segmentation: Geography: urban society
Demography: married and with children, age 10+, kids of early teens, middle income group
Psychographic: busy lifestyle, ambitious, achievers, extrovert, trendy, confidant people
Target audience: mainly children market
Positioning: chinese variant of instant noodles, spicy and slurpy, soupy noodles- noodles with soup,
nutritious hot soup giving a heavy feeling to curb in between meals hunger pangs, “tummy bhi khush ,
mummy bhi khush”
Product Life Cycle -
Example MAGGI
Introduction Stage
High-failure Rates
No Competition
Frequent product and Modification
Limited Distribution
High-marketing and product costs
Promotion focuses on awareness and Information 2-minute instant noodle was great success.
Promotional campaigns in school.
Advertising strategies: - focusing on kids.
Availability in different packages
Growth Stage
Increasing rate of sales
Entrance of competitors
Initial healthy profits
Promotion emphasizes brand ads
Prices normally fall

Development costs are recovered
10 yrs back it enjoyed around 50% market share in this segment which was valued at around 250 crores.
In order to improve sales , NIL changed the formulation of Maggi noodles in 1997.
However, this proved to be a mistake, as consumers did not like the taste of the new noodles.
In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Over
Offered in more sizes, flavors, options
Maturity Stage
Declining sales growth
Saturated markets
Extending product line
Stylistic product changes
Heavy promotions to dealers and consumers
Prices and profits fall
In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2- minute noodles by
The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had four
Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups,
Decline Stage
Long-run drop in sales
Large inventories of unsold items
Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or adoption
of substitute products
Consumer behaviour -
1. Need Recognition (Initiator) - I urged my family to get married
2. Information Search (Gatekeeper) - I searched on various platforms (shaadi.com) to gather information

regarding the various options I have
3. Evaluation of Alternatives (Influencer) – My Friend advised me to go for Love marriage.
4. Purchase Decision (Decision maker) – Find my compatible partner
5. Purchase (Buyer) – I decide to marry the guy I love
6. Consumption (User) – I get married to the guy I fell in love
7. Post Purchase Evaluation – I then evaluate whether love or arranged marriage? What is better
Product Line extensions -
1. Upmarket Stretch
3. Two-way Stretch
Market Leaders, Nichers Challengers, Followers,
Market leader
Coca- cola
communication.
Market Nicher
Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production
Market Challenger
Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low
outshine the other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well
using the punch line “ Nothing official about it”.
Market follower
Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from
Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution
Bharat Kumar, PG2, 89, Marketing Applications & Strategy - including Consumer Behaviour
1) Customer v/s Consumer
Customer is the person who pays the price and purchases the goods or services of a certain producer or a business.
Therefore, the customer is not essentially the consumer as well. The customer may pay the price and buy the products
and give them to a different person who then becomes the consumer of them.
Furthermore, the main aim of the business world is to impress the customer to buy more of their products. In other
words, all the marketing activities of the businesses act to influence the behaviour of the customers, inducing them to
buy more of their products or goods.
Consumer is the person who consumes or uses the goods or the services. The customer can be the consumer as well,
however not in all cases. Nonetheless, it is the consumer who will know the genuine quality and the nature of the
product or the service since it is the consumer who consumes it.
Relationship Between Customer and Consumer

· The customer and consumer can the same person or not.
· The consumer’s opinion may directly affect the customer as well as buying the products or services.
In the case of mother and child relationship the customer (who buys product) is the mother and consumer ( who
consumes the product ) is the child.
Eg. Health Food Drinks or malted food drinks category products such as complan, bournvita etc target the mother in
their communications to convert it into a purchase. As mother is very much emotionally attached to the health and well
being of the child and malted food drink are targetting the extra nutrients which it provides which will help the child
grow in a balanced way.
Most of the advertisement revolves around the customer- Mother.
Now we will see the other way round product targeting.
Eg. Kinder Joy is a well know chocolate for children. In this case consumer (child) is targeted in all the communication
as he is a very good influencer in making the purchase.
According to the research, almost 75% of the times child is able to influence the parent in purchasing the product of his
choice.
2) New Product Development
Strategies for product development often start with market research data. When companies have good demographic data
for their target market, they are able to meet the needs of that market and provide innovative solutions. Look at how
major manufacturers solve an emerging problem or consumer desire:
● The Nissan Leaf: With environmental concerns growing among consumers, rising gasoline prices and a desire for a
reliable vehicle, Nissan embarked on becoming the first to develop an electric vehicle. The Nissan Leaf was rolled out
for public purchase in 2008. Nissan has remained a leader in the electric vehicle market.
● Technica and Blizzard: Ski gear has traditionally been designed for men, with women's gear being a smaller version.
Gear maker, Technica and Blizzard looked at market data showing that 39 percent of skis and 43 percent of alpine boots
sold are for women. The company has shifted focus to offer more selections that better fit women's skiing needs. This
includes adjustments to meet physiological needs of women as well as feminine colors and designs that are more
appealing.
● Wilson Custom Racket Shop: Tennis players often buy rackets based on what their favorite pro uses. However, pros
tweak and customize racket weights and balance to meet the unique needs of a player's swing, which improves racket
head velocity and control. This racket science has become available to consumers who want to emulate favorite players,
as the Wilson Custom Racket Shop allows consumers to customize rackets just like rackets the pros use.
Each of these companies looked beyond making existing products better. They took a look at the subtle changes of
consumers, at times looking at subtle changes. When Nissan started development of the Nissan Leaf, it was ahead of its
time but reacting to growing concerns.
Research and Development
Paying Attention to Data
Reducing Costs and Adding Features
3) Pricing Strategies
If you are having a first movers advantage, then guage pricing from consumer survey in order to identify the ceiling and
the floor.Close to ceiling will be skimming and closer to floor will be penetration
Pricing should cover Manufacturing cost + Sales/ Marketing Cost
Buying decision is impacted by pricing
Pricing should be able to absorb consumer shock(Mazza perceived as a soft drink, hence customers willing to pay near
about soft drink price)
Skimming: Status, Exclusivity, a perceived value addition, technology(first movers advantage), eg: LG(Patent door
cooling tech), Armani(Gives an import tag, value of brand quality)
Saffola oil( Mass part of skimming), Luxury part of skimming
In skimming llok for value and not numbers
In distribution exclusivity and selectivity
In promotion direct mailers instead of television promotion.
Penetration: Biggest reason for which penetration is done is for induced trials(to see if consumer has no problem using
services)
Eg: JIO
By owning up : In case of JIO occupying the mobile towers of Anil Ambani
By Backward integration
Bundling : Bundle product of same company, eg: Mcdonalds
Bundle product of different company ( cross promotion)

Surge : Demand n Supply based ( cinema, ola, uber, etc)
Psychological : Eg: Bata, Bata uses psychological pricing as its pricing strategy. Bata generally prices a product to the
nearest lower “9” digit figure of the actual price. For example, any commodity to be prices $10 is priced at $9.99 to lure
and attract more customers. Bata started this strategy in terms of pricing its products long back, but it is still being
implemented in Bata Showrooms.
Geographical Pricing : Prices different because of transportation cost, Harley Davidson India, High price due to
excessive tariff rate coupled with taxes
Everyday Low Pricing : Retail Strategy, 99 store , Brand Republic)
Promotional Pricing : Amazon Prime
4) Distribution
Logistics, Transportation, Warehousing, Storage, Inventory Management
P & L Tarun Traders distributor ( Monthly)
Product Frooti
(160ml)
1 Carton 40 units
Parent Company Parle

Agro
Total sales to wholesaler 247500
Total Sales to Retailers 262500
Total Sales 510000
Expenses
Cost of 1500 cartons bought from company 481500
Other Expenses ( 2% of cost ) 9630
Tax Expense ( 1% of cost ) 4815
Total Expense 495945

Net Profit ( After Tax) 14055
Other Expenses include (On Monthly basis)
Unloading expense ( after receiving product from the company) 75 paise per carton
Godown Keeping Rs. 1 per carton
Transportation Cost Rs. 2 per carton
Loading Expense ( Before sending it to the wholesaler/retailer) 75 paise per carton
Unloadingexpense (at wholesaler/retailer's place) 75 paise per carton
This accounts to 2% of cost
Then 1% extra for taxes and Account

Maintenance
3 Approaches to distribution
Mass Distribution/ intensive distribution
Selective Distribution
Exclusive Distribution
Channel Design
No intermediaries : Insurance policies, Tupperware
Single intermediary : Personal Jewellery
2 intermediaries….
Push n Pull
Villages : Low Awarness : Any headache medicine

In more awareness areas : Demand disprin , crocin : Pull Strategy
Turnover of distributor is the highest and hence its investment is also the highest
Retailer practically has no investment and least loyalty
5) Promotion
Any campaign or any promotional strategy is based on the insight

Liril : Insight: Escape
Idea(Honey bunny song): Insight: National n Not Local
Airtel(Hare k friend zaroori hota hai): Insight : Segmenting Youth
ICICI(Bandein Acche Hain) : Insight: Selfless attitude men
6) STP & D
Segmentation is done to focus

Targeting is the derivative of segmentation
Example : Mango Drink
Segmentation
Frooti : Demographic(Age), Psychographic( Teenagers: Sporty & fun loving nature)
Real Mango Juice : Geographic, Demographic( Mother:Influencer)
Paper Boat : Urban India, Age grp: Above 20 years, Geographical target : Reach out to communities that had left their
native homes….
Maaza : Geographic, Demographic, ….
Targeting
Frooti : Recreational, kids, lifestyle, sports….Target Market
Real : Youth, Health conscious people, children, mother
Paper boat : Product attached with nostalgia, ppl in tier 1 cities/towns
Maaza : Teenagers, Children below 13 years, Mothers, office going
Positioning
Frooti : Mango frooti, fresh n juicy campaign, Yo frooti campaign, Positioning as more relevant to youth
Real : Fruit juice with Fruit Power , Tasty n Powerful
Paper boat : Drinks n Memories
Maaza : Har Mausam aam
7) BCG Matrix
Relative Market Share
High Low
Star Question Mark
Build / Hold Increase investment in this, obtaining

Sometimes Company kills star, due to funds from cow
government regulations, bans, etc
Having just stars as well you will die,
because stars require too much
investment
You have to avoid star from
becoming dog
Stars just don’t mean you are doing
well, It just mean you are doing good
at a cost
Take funds from cow
Cow Dog
Harvest , ROI Highest, Have max DIVEST

profit
8) Ansoff Matrix
Existing Product New Product

Market Penetration Product Development
Promotion Variation
New Customers in existing market Nestle Remained in European Market

When nestle entered Pakistan , milo and started venturing in health .
@ affordable rates Nestle develops coffee market, etc
Market Development Diversification
Merger New Industry
Kitkat to foreign markets and Nestle invested in loreal and is also

launched nescafe in china the stakeholder for no. of pharma
companies
9) Porter’s 5 forces
Bargaining power of buyers Threat from Substitute
For Nestle : High High

Due to High Comp, Bargaining power is
high Increase in sales of substitutes among
Nestle recognizes the power of buyers health conscious people
and strives to ensure that consumers of
nestle remain satisfied
Bargaining power of suppliers Threat from new entrants
For Nestle : Low Low threat

Long- term relations with suppliers to As food industry is diverse
ensure quality Existing companies : Strong Distribution
Switching cost moderate & Economies of scale to produce &
Nestle requires supplies in massive deliver @ low costs
quantities
10) PLC
INTRO Growth Maturity Decline
Product Basic Add Features New segment Basisc
Price Maintain Pricing
Place Extensive Extensive Maximum Selective

Selective Selective Extensive
Exclusive
Promotion High Lower it slightly Competitive Stop promotion

For Frooti
Intro ( 1985-1995)
Parle agro partnered with dacunha comm. To give birth to frooti.The launch budget was approx. Rs. 20 lakh and most of it spent
on TV adv
Intially positioned as a kids drink, alternative to colas, Tetrapack extended shelflife which is biggest advantage
Growth ( 1995 – 2005)
In 2000, coke style bottles introduced to entice coke drinkers to healthy beverage
In 2005, to increase penetration triangular tetra packs launched to extend rural reach
Maturity( 2005-….)
600 juicy mango pranks were played across 30 centres
Parle tried to appeal youth, as worried by stagnation
11) Consumer Buying Behaviour
Recognition of needs & Wants ( Internal , External Stimuli)

Information Search ( Personal, Public, Experimental trials, Commercial)
Evaluation of choices ( Benefit, quality, features, price, history, services, etc)
Purchase decision( Attitude of others, consumer perceived risk)
Purchase evaluation ( Post purchase satisfaction, Post purchase action, Post purchase use and disposal)
12) Product Line extension
Product mix : Summation of Product lines

Extension : Horizontal & Vertical
Horizontal Extension : Product line extension addition : Brookbond(Tea) to Bru(coffee)
Vertical Extension :red label , taj mahal, width of products
Depth : No. of SKU’s in each category
Length of product line = Width of product line * Depth of product line
13) Market Followers
Adaptors : Britannia good day 1986 33%market share

Parle 2020 launched in 2008 18-20% of market share
Cloners : Cloning means making the same product as leaders, but with very subtle difference. Cloning makes advantage of the
top brands and makes same to same products.
Eg: Watches made from Rado, or bags of Gucci, with Rado spelled as RADA and Gucci spelled as GUCCA, then that’s cloning
Counterfeiters
Acts under Intellectual Property Rights

• Patents Act, 1970
• Trademarks Act, 1999
• The Designs Act, 2000
Puma Se vs Nikhil Thermoplast Ltd.
Court: High Court of Delhi

Case No.: CS (COMM) 992/2016
Order Dated: 22nd August, 2017
Issue : Whether the use of the Nikhil Thermoplast’s logo is descriptive in nature and whether the use of such mark infringes the
trademark rights of the Puma Se?
Cello Household Products vs Modware India
Issue: The case was filed by popular ‘household products’ production company ‘Cello’ against Modware India seeking an
injunction for design infringement and passing off
TECHNIQUES USED BY COMPANIES
• NIKE: In the 2012 retail release of Nike Air Jordan 4s, Nike added one subtle design feature - the word
‘TWENTYTWELVE’ embossed into the leather tongue beneath the laces.
• Aventis Pharma: In the 2012 retail release of Nike Air Jordan 4s, Nike added one subtle design feature - the word
‘TWENTYTWELVE’ embossed into the leather tongue beneath the laces.
• Coca Cola : Coca-Cola made a choice to brand the recipe a trade secret instead of patenting it, which would have
lead to the disclosure of the ingredients.
Shubham jain
Roll no 84
PGDM batch 2
Marketing assignment
I] New product development
It is the complete process of the service or a product from conception to market.
There are 8 steps in new product development process-
1. Idea generation- Idea generation refers to the stage where the systematic search for new product
idea happens.
2 sources of idea generation
a. Internal sources- The company finds new ideas internally. They can find ideas from the employees,
Sales force, R&D team and Owners.
b. External sources- The company can also get new ideas from external sources such as customers,
competitors, distributors/retailers. The most important external source are customers, because the new
product development process should focus on creating customer value.
2. Idea screening and evaluation- The next step in idea generation is idea screening where ideas are
evaluated and good ones are spotted. One of the methods used is PMI where the company rejects the idea
with a score less than 0.3, develops the idea further if it is between 0.3-0.5, and if it is greater than 0.5 take
it to the next step.
3. Concept Development and testing- Customers buys concepts not ideas. Concept is idea which can
be expressed in customer terminology. The concept is then tested with the group of target customers.
4. Marketing strategy development- After getting positive results from testing the concepts the initial
marketing strategy is developed taking into consideration the target market.
5. Business analysis- Once decided upon the marketing strategy and product concept, the company has
to evaluate the business attractiveness. This step involves a review of the sales, costs and profits
projections.
6. Product development- In this step the actual product or service is developed, up to this step there is
only a concept which is tested, the company only has a prototype.
7. Test marketing- In this stage the product and the marketing plan is tested in realistic market
settings. This step helps the marketer to get the true picture before diving into the great expense of full
introduction.
8. Commercialization- After test marketing, if the company gets a positive nod to launch the product,
the company goes for commercialization which is introducing the product into the market.
II] Pricing strategies

Pricing impacts your customer directly. Pricing is to be done in line with the target segment.
2 major pricing strategies is skimming and penetration, others are a subset of either of the two.
1. Skimming- it is a product pricing by which a firm charges relatively high initial price and then
lowers the price over time. It is done when the company wants to earn through value, margin is higher in
this type of strategy. Skimming is done when there is a perceived value addition. Example- PS4 launched
in India in 2014 at the price range Rs. 39,999, currently priced at Rs. 26990.
2. Penetration- Another pricing strategy is penetration, where the price is set lower initially to reach a
wide fraction of market. It id done when company wants to through volume, margin is lower or sometimes
negligible or the companies even make losses.
Reason for penetration-
• Market share
• Customer relations
• Induce trials
• Brand loyalty
Example- Reliance Jio, Jio used penetration pricing strategy in the telecom industry to induce trials, giving
all services absolutely free starting from 5th September 2016 till march 2017.
There are also other pricing strategies like-
3. Bundling pricing- In a bundle pricing, companies sell a package or set of goods or services for a
lower price than they would charge if the customer bought all of them separately.
Bundling can be done in 3 ways-
• Same product (havmor vanilla selling 2 family packs on the price of 1)
• Same company product (Colgate selling a pack of its toothpaste and zig zag black toothbrush at
233, which otherwise would have been at 250).
• Different company (Samsung selling its 7 series 55 inches of Rs. 62890 with google mini speaker
of Rs. 4499 at a combined price of Rs. 65000)
4. Surge Pricing- Where business sets flexible prices based on the market demand. Example- Ola,
Uber surge pricing on 31st December night or during heavy rains in Mumbai.
5. Captive product pricing- It is the strategy where the price of the core product is relatively low,
whereas the price of the captive products is highly priced. Example- HP desk jet price- Rs. 5399 and its 680
black cartridge price- 459, which is to be refilled after 480 pages black and white and 150 pages colour.
6. Competitive pricing- Competitive pricing is a pricing strategy in which the competitors' prices are
taken into consideration when setting the price of the same or similar products. Example-
Models Petrol Diesel
Hyundai Creta ₹ 10 lakh - ₹ 14.5 lakh ₹ 10 lakh - ₹ 15.65 lakh
Nissan Kicks ₹ 9.55 lakh - ₹ 10.95 lakh ₹ 9.89 lakh - ₹ 13.69 lakh
Here looking at the competition Nissan kicks came up with price lower than creta when it launched in jan
22nd 2019.
7. Geographical pricing- Geographical pricing, in marketing, is the practice of modifying a basic list
price based on the geographical location of the buyer. Example- iPhone 8, 64 GB has been priced at $699
where as the same model is priced at $900 in India.
Distribution
Distribution is the activity of both selling and delivering products and services from manufacturer to
customer. This can also be called product distribution.
Types of distribution
• Intensive
• Selective
• Exclusive
Tier 3
Manufacturer-distributor-Stockist-retailer-Consumer.
In tier 3, There is a Clearing and forwarding agent between the manufacturer and the distributor which
never holds the products but facilitate order booking and delivery. They are the ones which the supply
chain.
Tier 2
Manufacturer-Distributor-Dealer-consumer.
Tier 1
Manufacture- Distributor-Consumer.
I have taken a stockist of a cube tissue box (Mystair)
So, it is Tier 3 distribution chain.
The break up of margins is as follows-
Particulars Price/box Margin as a % of price paid by customer
Manufacturer 10 10
Distributor 14 12
Stockist 20 20
Retailer 28 30
customer 40
III] Promotion and insights
Promotions refer to the entire set of activities, which communicate the product, brand or service to the user.
The idea is to make people aware, attract and induce to buy the product, in preference over others.
Insights
Airtel harr ek friend zaruri hota hai
• Airtel was always a market leader, they realized that to grow further data was the only option.
• Segmentation was done on the basis of demographics and the ad focused on the youth.
• Within youth they looked at characteristics of the youth when social media was on the rise.
• Due to the rise in social media usage, Youth started having friends for everything like a reading
friend, friend with the same music taste.
• Thus, to target them so that they would use data more airtel came up with the ad Harr ekk friend
zaruri hota hai.
• A step further.
• After establishment of the segment, they wanted the target audience to share data.
• Therefore, they came up with the ad campaign jo tera hai voh mera hai.
IV] STPD
To explain Segmentation, Targeting, Positioning and distribution I have taken the example of Saregama
Caravaan. At the time of Saavn, Wynk music, Gaana and other online music apps, Saregama Caravaan
came with a product going back upto 10 years in terms of technology.
Segmentation
• Demographics- Age above 40 years
• Geography- Tier 1 and 2 cities
• Behavioural- Not well versed with the use of technology.
• Psychographic- Still loves old songs and they were played on the radio.
Targeting
Saregama Carvaan targeted those who were still not very comfortable using technology for listening to
music, those who still are used to listening to music on radios when they travel in car and not use their aux.
They targeted individuals above the age of 40 who want to listen to songs they still love and in the way
they are used to listening to it.
Positioning
Now, Saregama knew that India is a country where the maximum household income comes from the
younger generation and it would have been difficult for them to sell it directly to the end user, Therefore
they positioned it as a gifting item, something which you can gift to your elders in the house. They had ads
where they showed a lady dancing to the song “bol baby bol” and had a line which said “aapke pehle pyaar
ke liye aapke mummy ke liye”, positioning it as a gifting item. They also endorsed it in the movie 102 not
out, where Amitabh Bachchan and Rishi Kapoor listen to old music on the terrace of their house.
Differentiation
When other brands and the entire music industry was focused on the youth, they saw a gap that the elderly
are being ignored in this process and they came with a product suited to their needs. Thus, differentiating
itself completely from the trend as well as the competition.
V] BCG matrix
Maruti Suzuki
1. Question mark
It is the case where market share is low but the market growth is high, every new product launched in the
market starts it journey from a question mark. At this stage the company invests.
Maruti’s Question mark is S-presso a mini SUV, the SUV segment was one of the few segments showing a
growth in the automobile sector, and in the year 2018 sales of Passenger vehicle consisted of 23% of
SUV’s India.
2. Star
A star is a segment having higher growth rate and also higher market share. At this stage the company
builds
Star’s of Maruti include-
• Vitara brezza- it is in the SUV segment and Maruti has been able to sell 4 lakh units till now. Vitara
brezza has a market share of 44% of all the SUV’s sold in India.
• Baleno- It is in the premium hatchback segment, with 13% market share and sales of over 6.5 lakh
units overall.
• Ciaz- It is in the mid-size sedan segment, with a market share of 30% and sales of 2.7 lakh units.
• Ertiga- it is in the suv segment, this star became a question mark and now they have launched Ertiga
next gen on 21st august 2019 and it is gaining market share comprehensively.
3. Cash cow
A cash cow is a segment where the growth rate is low but the market share is high. At this stage company
harvests.
• Alto- in the entry hatchback segment, with the market share of 77.48% this year and a sale of over
38 lakh units.
• Swift dzire- in the compact sedan segment, with a current market share of 55% this year and the
overall sale of 19 lakh units.
In these 2 segments the market growth has been low, but the market share of Maruti is really high.
4. Dog
A dog is segment where both the market share and attractiveness is low. At this stage company divests.
• Ignis- in the entry hatchback segment with a market share of 1% currently and an overall sale of 1
lakh units.
VI] Ansoff matrix
Ansoff matrix is also called as product/ market expansion grid, is a tool used by firms to analyse and plan
their strategies for growth.
Existing product New product
Existing market Market penetration Product development
New market Market development Diversification
1. Market penetration- it focuses on increasing sales, it is generally when the product is in the growth
phase, marketers use aggressive promotion and competitive pricing.
2. Product development- It focuses on producing new product in the existing market, used for
variation in the product and to acquire other segments.
3. Market development- It focuses on entering new markets with the existing market. Companies use
mergers to mitigate the risks of entering into a new market altogether.
4. Diversification- It focuses on new markets with the help of building new products, in this strategy
companies build and acquire companies.
I took an example of Unilever
Existing product
New product
Existing market Market penetration
Red label
Close up
Ponds
Kissan ketchup
Lux
Lifebuoy
Surf excel Product development
Dove shampoo
Clinic plus
Vim liquid
Lifebuoy handwash
Pure it
New market Market development
Knorr soup
Kwality walls ice cream
Lipton tea
Dove
Domex
Pepsodent
Sunlight Detergent powder Diversification
Lipton vending machine
Lakme fashion week
Lakme beauty salons
Knorr Recipe centers

Healthcare
VII] Porter’s 5 forces
I have taken the example of mobile phone service provider (telecom industry)
1. Threat of new entrants- Entry barrier is high because there is need for high investments to enter into
the telecom industry and also there are complex regulations related to licensing in this sector.
2. Bargaining power of suppliers- The bargaining power of suppliers is low as there are a lot of mobile
phones manufacturers in the market.
3. Bargaining power of customer- The bargaining power of customers is high as there are options
available in the market and also the switching cost is zero, but recently with the increase in tariffs by all the
leading competitors simultaneously one can argue that the bargaining power of customers has decreased.
4. Threat of substitute products- Threat of products is low, but with the increase of dominance of
internet wifi’s would soon become substitutes as there would not be the need of calling or sim cards as with
local wifi connectivity people would not have the need for calling using their operators’ network.
5. Rivalry amongst competitors- the rivalry amongst competitors is very high as one can all the prices
and the services provided by all competitors are almost the same.
6. Exit barrier- There is a high barrier on exiting this sector as with the huge investments on
infrastructure comes huge debts and these investments are to be made constantly with the increase in the
demands of the customers. So, the company cannot exit before paying its dues.
VIII] Product life cycle
Introductory Growth Maturity Decline
Product Basic Add New segments Basic
Price Skimming High Slightly low Maintain High
Penetration Low Slightly high Maintain Very low
Place Skimming Selective Selective but high Extension Exclusive
Penetration Extensive Extensively high Maximum Selective
Promotion High Slightly low Competitive No promotion

Example of Maruti suzuki S-presso Vitara brezza, baleno, ciaz, Ertiga Alto, Swift
Ignis
Comparing with BCG matrix Question mark Star Cash cow Dog
Strategy to use Invest Build Harvest Divest
IX] Consumer behaviour
A consumer can also be an organization. A consumer can be someone who will buy either goods or
services or you can also specify the goods and services as economic services or products, or good or
commodities. A consumer is the end user or a target to whom the goods and services are sold.
Factors affecting consumer buying behaviour
-Attitude
-Perception
-Personality
-Cognitive
Consumer buying roles – the 5 types of consumer buying roles are –
i. Initiator:
For example – in a family a housewife might initiate saying the need to buy new house due to many
number of possible reasons like – less no. of rooms, bad locality, poor environment or others.
ii. Influencer:
For example – kids in the family or the uncle might be the influencer who will suggests good locality to the
family head, who will suggest various options and benefits associated with it.
iii. Decider:
where to buy.
For example – in the same family even if everyone has selected a prefferd common house but the decision
maker say grand mother will take the final call if the house has to be bought or not she might see other
factors relating to house also like vastu, and then she will make a final call whether to buy or not to buy.
i. Buyer:
For example – the main earning person say the eldest son of the family will pay for the house.
User:
for example – the people who are going to live in the house. It might also be possible the buyer(dad) or any
other party might not use it like if the house if purchased for investment purpose and has been given to a
family friend, for him to stay.
Customer buying process –
an individual to act or to buy the product.
For example –I might have lost my mobile phone or might have the need to play PES 2019 which is not
supported on my mobile, hence both the factor unmet need and the problem recognized will trigger me to
buy a mobile phone and hence the process of consumer buying begins at this point.
possible sources of information.
For example – now I might discuss the problem recognized or about my unmet need with my friends who
might recommend me with certain solutions, and brands to buy so satisfy my need. In other words, I would
try to search information about the various options available and brands available via different sources.
Sources like –
ii. Personal Sources: my friend Recommending me about one plus 7 pro.
iii. Commercial Sources: Vivo hoardings.
iv. Public Sources: watching iPhone ad in newspaper.

v. Experimental Sources: Had a trial of my cousin’s iPhone.
attractive. Evaluation calls for evaluating various alternatives with certain choice criteria.
For example – I will select 1+ 7, vivo V7, iPhone 11 as my potential mobile phones keeping in mind
budget, need and my wants, features available, services offered and other similar parameters.
Following criteria are considered while evaluating alternatives:
• Benefits offered by the brands – Extended Warranty, Insurance etc.
• Qualities, features or attributes, and performance – Processor, graphic card
• Price changed by various brands – iPhone charging premium, vivo charging Economical
• History of brands – Services offered, Quality of staff support,
• Popularity, image or reputation of brands – iPhone’s good brand image, Status, Vivo Friendly
image
• Product-related services offered by the brands, such as after-sales services, warrantee, and free
installation – After sales, warranty, Parts Replacement, Re-Selling
• Availability of brands and dealer rating – Services offered by the dealer, Availability of Products,
Convenience from my home.
benefits or satisfaction is preferred.
For example – after I have selected my most preferred 1+ 7 based on the benefits it offered over other
brands like IPhone, Vivo, Samsung I will further evaluate some factors before buying like –
• Attitude of others – Is reputation of 1+ amongst other good, what my friends think about the brand.
IPhone’s status Factor.
• Unanticipated Situational Factors – iPhone increased Tariffs due to GST Slab change, and shift in
production plant.
• Consumer perceived Risks – Poor Service from Vivo, Low features from iPhone and costly
accessories.
And hence after analyzing all such parameters and factors in my mind I will select a particular brand and a
product 1+ 7.
satisfaction/dissatisfaction.
For example – after buying the mobile phone I would see that whether my needs my expectations are met
or not, and will access the mobile phone based on certain more parameters like –
• Post purchase satisfaction – play games, battery life
• Post purchase action –
o Satisfied – Will recommend 1+ 7. To my friends and family, and will spread positive word of
mouth.
o Dissatisfied – Will Complain About the brand, about the product, say negative things to family and
friends for the brand and hence will do negative publicity of the brand.
• Post purchase use and disposal – I have bought product for games, but I might use it more for
watching movies etc.
X] Product mix
In the above case,
Marico has 6 product lines and a product mix of 14 products.
Parachute has a product depth of 5, width= depth *length.
product category.
There are 2 types of product line extension-
• Vertical extension- The vertical extension refers to the increase in the number of brands in the same
product category. Example- Parachute-Coconut oil
-Advanced
-Jasmine
• Horizontal extension- This leads to the product line addition for the company. Example- From
Parachute to Nihar.
XI] Market Challengers
• A market challenger is a company which tries to expand its market share by aggressively flooding
the market with its products at competitive prices. A market challenger is a firm or a company which is
usually at the No.2 or No.3 position.
• A market challenger is a firm which is just below the market leader with a good presence.
Strategies
1. Frontal attack
In this attack the challenger directly attacks the strength of the leader, The frontal attack is the direct attack,
wherein the market challenger matches with the competitor’s product, price, advertising, and promotion
activities.
Example- Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price
with the same level of the quality as that of other competitors in the market.
2. Flank attack
The flank attack means, attacking the competitor on its weak points. Here the market challenger determines
the weak areas of the competitor in terms of two strategic dimensions i.e. Geographic and segmental.
Example- L.G has successfully made use of this strategy by introducing the color tv “Sampoorna” for the
rural people and outshine the other coloured TV players who had a less focus on these areas.
3. Encirclement Attack:
The encirclement attack means, attacking the market leader or a competitor from all the fronts
simultaneously, it is the combination of both the frontal and the flank attack.
Example- The FMCG industry applies this attack more aggressively with the intention to outshine the
other. ITC and HUL could be the best examples.
4. Bypass attack
The bypass attack is the indirect attack, wherein the market challenger does not attack the leader directly,
but broaden its market share by attacking the easier markets. Example- Pepsi adopted this strategy when it
launched its mineral water brand “Aquafina” very well before the Coca Cola’s mineral water brand.
5. Guerrilla warfare
The Guerrilla warfare is the intermittent attacks imposed by the challenger to demoralize the competitor by
adopting both the conventional and unconventional means of attack.
Example- The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each
other. When the Coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using
the punch line “ Nothing official about it”.
XII] Market Leaders
• Position defence: Gillette is the market leader and to retain its position the company entered into
women’s segment and launched products like women’s razors, Venus, Foams. Goodnight to retain its
position as market leader launched a new product (fast card) which does not even require electricity. As a
result it successfully penetrated into rural market.
• Flanking defence: Maggie launching atta noodles (Taste bhi health bhi). Coke and Pepsi launching
a diet coke/ low sugar drinks.
• Pre emptive defence: ITC venturing into hotels. ITC venturing into retail. Parley going from
biscuits to chocolates and juices (frooti).
• Mobile defence: Facebook acquiring whatsapp.
• Counter offensive defence: The Hindu vs. Times Of India.
XIII] Market Nichers
Vertical level: Purple Panchi is an example of vertical level specialist it specializes in making women’s
ethnic wear only. specially lenghans and kurtis.
Geographic specialist: Bombay Shaving Company is an example of geographic specialist. It’s production
and target audience was initially strictly restricted to the city of Mumbai. And meera shampoo which is
restricted to south India only.
Customer size specialist: Tree of Life (Hallmark) specializes in only jewish greeting card and gifts and
celebrates Jewish faith. Alto moda a plus size store are also example of this as it is only for people with
plus size needs.
Product specialist: UNTUCK it brand has created a new line of products for people who do not like tucked
shirts. It gives you a feel of a tucked shirt without actually tucking it. Sabyasachi is also another example of
this.
cars like Porsche, Ferrari, BMW. Sensodyne and nicotex are also the examples.
XIV] Market Followers
The innovator bears the expense of developing the new product, bringing in the technology, breaking entry
barriers and educating the market. However, another firm can come along and copy or improve on the new
product.
1. Adaptors
These market followers have similar products but they try to adapt from their closest competition. Adapters
can soon become leaders as well because they can adapt, learn and make a better product than the higher
competition. Example- In the year 2004, Dish tv came up with DTH connection, which was then adapted
by tata sky which came in the year 2006 with added features of recording etc.
2. Imitators
Imitators leverage on the features of the product they make the same product but use their own brand name.
The difference might be that the new product is made from poor material or that it does not have the
service or promise that your brand can offer. Nonetheless, there is a huge market for imitators where people
want to buy products at lower cost as they cant afford the higher one.
Example- Imitation jewellery, having the same designs like that of a Tanishq.
3. Cloners
Cloning means making the same product as yours, but with very subtle difference. Cloning makes
advantage of the top brands and makes same to same products.
Example-
4. Counterfeiters
This an act of piracy where the counterfeiter sells fake goods as original. There is no subtle difference as
well, they fake product and sell with the brand name of the company.
Example-
Marketing Examples
Shreya Salunke
Roll no : 107
example of a mother and child.
In the case of mother and child relationship the customer (who buys product) is the mother and consumer (
who consumes the product ) is the child.
Eg. Health Food Drinks or malted food drinks category products such as complan, bournvita etc target the
mother in their communications to convert it into a purchase. As mother is very much emotionally attached
to the health and well being of the child and malted food drink are targetting the extra nutrients which it
provides which will help the child grow in a balanced way.
Most of the advertisement revolves around the customer- Mother.
the other way round product targeting.
Eg. Kinder Joy is a well know chocolate for children. In this case consumer (child) is targeted in all the
communication as he is a very good influencer in making the purchase.
Tata nano :
Idea Generation : To Create safe, Affordable , convinient vehicle for a family of four which will replace
two wheelers
Idea Screening : Scooter with side seats to accommodate two ore people or an auto rickshaw with
modifications
Concept testing and development : People preferred Four wheeler cars over two wheeler or an auto
rickshaw because of status , convenience and economical.
Business strategy development : special consession from government, factory in economically favourable
zone, make awarenss among public
Product design and development : Very compact design and many changes were made into existing
engine design to accommodate many parts in small area. Many patents were filed.
Test Market: Crash Testing, Testing on rough tracks
Commercialization : Launched the product. Marketed as “ Cheapest Car “. Heavy advertisements were
done
Pricing Strategies:
1. Penetration pricing: In jio, earlier it was free to induce trials but now for every call to Vodafone
and airtel they pay 6 paisa per call.
2. Price skimming: Apple, because of product differentiation, gradually decrease the price as the
competition product copies the same and sells in cover price.
3. Psychographic pricing: Bata found that customers are more likely to purchase items without
zeros at the end. So they started pricing the products without zero ending. For eg : 299
5. Captive product pricing: HP printer is for 11000 and comparatively reasonable. But the cartage,
that should be replaced after a certain time, charges more, around 6000.
6. Segmentation pricing: HUL products have 20 soap products and everyone costs different, as they
are all based on segmentation. Dove and Lux.
8. Geographical pricing: Nandini milk in south costs of Rs.56 and outside south it costs around
Rs66.
9. Aggressive pricing strategy: TATA jeep was expected to launch at 16lakhs but was its actual
price was out at 14lakhs.

Distributor:
The MRP is Rs. 191. The company first sells it to the distributor, who at a margin of about 8% sells it to
the wholesaler who then with a margin of about 10% sells it to the retailer. Finally the retailer sells it to the
customer at a margin of about 12%. So, the prices in rupees of the different elements of the supply chain
are as follows:
Consumer Rs 191
Particulars Rs
COGS 278000
Transport 900
Rent 2000
Salary 800
Other expenses 100
Profit 20800
· “Airtel” – airtel was always the top most. Aitel cannot grow only on the base of telecom.
AND
· Liril advertisement: This basically targeted women of all age groups. In the olden times, when there
widely existed the system of joint families, women did not have free time for themselves. So, this
advertisement in which a woman is bathing under a waterfall using liril soap, gave all women a
sense of free time which they otherwise hardly found in a joint family. So, this advertisement
instantly had a connect with all women and thus the brand become a huge success.
· ICICI Advertisement (Bande Ache Hai): This advertisement is a classic example of Segmentation.
It particularly targets all men who are the bread owners of their family. This advertisement
shows through various situations how selfless and caring all men are towards their family.
STPD
· LUX : HUL
Segmentation:
1. Geographical: India, Thailand, South Africa, Pakistan, China, Canada, Western Europe,
Srilanka, Bangladesh.
2. Demographic: Female (16-35)
Affordable
3. Behavioural: inter-market segmentation (forming segments of consumer who have similar

needs and buying behaviour even though they are located in different countries).
Reliable and trustworthy.
4. Psychographic: all the class as it is affordable. Appreciate beauty and glamour.
BCG Matrix
Tata Group
· STAR:
- Tata Steel : Market share 8.9%, It is a market leader in steel
- TCS : Market leader , 10.1% market share , Growth rate : 13%
- Indian Hotels company Limited (IHCL), Taj Group
· CASH COW :
- Commercial Vehicle & Heavy Vehicle of tata Motors
- Tata Power
- Tata Tea
- Tata Salt
· DOG:
- Passenger car vehicles ( 10% market share, where the market leader is Maruti with with
market share of 45%)
- Also for Passenger car vehicles market growth is declining with reduced market share
- Tata real estate
· QUESTION MARK:
th
- Tata Communication (7 % Market share , at 7 position)
- Tata Sky
Ansoff matrix
Ansoff matrix for Tata Group
· Penetration :
- Tata Motors
- Tata Bearings
- Tata tubes
- Tata wiron
· Product development
- Steel coils
- Corrugated steel
· Market Development
· Diversification
Porters 5 forces
· Competitive Rivalry – High :
- Facing Competition from many other numerous brandsa like Knorr, Sunfeatst
- Market share hjad been declined due to ban which benefited other competitors
· Threat of new Entrant – High :
· Bargaining power of supplier – Low :

· Bargaining power of Buyers – High :
- Buyers can switch from one brand to another in no time, Hence switching cost for buyers
is low which is a threat for Maggie
· Threats of Substitute – High :
Product life Cycle
Introductio - Product Low - - “ Bas 2

n launch pricing Produc Minute
ed strategy er-> s“
keepin for Distrib Instant
g in making utor -> noodles
mind product Retaile
the affordable r -> -
workin Consu Promot
g mer ion
women focused
and on
childre awaren
n ess and
informa
- No tion
compet
ition
Growth No Changes in Rapidly Campaigning in “ Good to eat fast
product rising school to cook “
sales
Tried changing
masala formula in Rising
1997, but reverted profits
the changes soon
Prices
were kept
normal
Maturity Introduced wide Sales at Intensive “ taste bhi, Health

variety of flavours peak distribution, bhi “
like atta noodles,
Chicken noodles, Profits are Maintained good
cuppa maggie high relation with
channel partners
Cost per
customer
low
Prices
were
affordable
, But
reduced
the
quantity
Decline Found presence of Still Low Reduced Copmeback

Lead in the distribution campaign
Maggie which
lead to loss of
trust among
customers
Consumer behaviour
Process :
Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty winter
coat if she’s going to survive the snow and lower temperatures.
b) Information Search :
The customer searches “women’s winter coats” on Google( Public search) to see what options are out
there. When she sees someone with a cute coat, she asks them where they bought it(Personal Search) and
what they think of that brand. She also analyzes the brands of jackets she had previously (Experience
Search) and takes a look at the pamphlet which came with the newspaper(Commercial Search).
The customer compares a few brands that she likes. She knows that she wants a brightly coloured coat that
will complement the rest of her wardrobe, and though she would rather spend less money, she also wants to
find a coat made from sustainable materials.
d) Purchase
The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand uses
sustainable materials and asking friends for their feedback, she orders the coat online.
Did the purchase meet the need the consumer identified?
Is the customer happy with the purchase?
How can you continue to engage with this customer?
For post purchase evaluation she has to look for answers to these questions to see if her decision
of a jacket of particular brand was right or not.
· Beauty care
Deodorants- Old spice, Secret sure
Hair care- Head and Shoulders, Pantene
Skin care- Camay, Ivory, Clearsil, Noxzema, safeguard
· Food and beverages
· Health care
Vitamin c drops, Vicks, Vaporub, DayQuil, crest
· Laundry
Bleach: biz
Dish care: cascade, dawn, ivory dish, joy
Hard surface cleansers: comet, mr. clean, spic and span
Laundry: tide
· other
Pampers, tampax
Market leaders
1. Position Defence : occupying most desirable position in customers mind . P&G owns key functional
benefits in customer’s minds. Crest toothpaste for cavity fight. Papmpers diapers for dryness
2. Flank Defence :
3. Preemptive defence :
4. Counteroffensive defence: Apple and Samsung controversy over design copying
5. Mobile Defence : Leader stretches their domain over new terretories by market broadening and market
diversification. ITC being Tobacco is the main product line it has diversified itself in other product lines
too.
Market Challenger
Frontal attack :
Flank attack : Royal enfield vs Hero honda
Encirclement Attack: It attempts to capture wide slice of territory. Hindu vs Times of India
Bypass attack: Pepsi used bypass atcack by rolling out Aquafina bottled water nationally before
coke did it(Dasani). Purchasing orange juice giant Tropicana before coke acquired Minute Maid.
Guerrila attack : BMW vs Mercedes
Market Followers :
Adapter : Good Day Butter cookies - Britania and Parle, Dish TV and Tata Sky
Imitator: Sabyasachi Lehengas getting in local market
Cloner: Watches made from Rado, or bags from Gucci , spelled as RADA or Gucca.
Counterfeit : Pirated CD Disks
· Market Nicher:
1. End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who
lefties.

3. Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and
4. Product specialist: UNTUCKit brand has created a new line of products for people who do not
like tucked shirts. It gives you a feel of a tucked shirt without actually tucking it.
5. Specific customer specialist: Weber carburettor is a company which provides che carburettors to
Sarthak Surve 118
CONSUMER & CUSTOMER
As far as the difference between the customer and the consumer is to be understood, the person who
pays for such a product is simply the ‘Customer’ and the person who utilizes the benefits of the
product, is the ‘Consumer’. Example: Baby products Johnson’s baby shampoo
Customer: Mother & Consumer: Baby
NEW PRODUCT DEVELOPMENT PROCESS
1. Idea generation.
2. Idea screening.
3.Concept testing.
4.Business analysis.
5.Product development.
6. Test marketing.
7.Commercialization.
PRICING STRATEGIES
1. PENETRATION PRICING: The price changed for products and services is set artificially
low in order to gain market share.

Example:
IKEA [Swedish furniture retailer] introduced products at very low prices, a large number of buyers
is attracted, making Ikea the biggest furniture retailer worldwide. Although
the low prices make each sale less profitable, the high volume results in lower
costs and allows Ikea to maintain a healthy profit margin. In order for this
new product pricing strategy to work, several conditions must be met. The
market must be highly price sensitive so that a low price generates more market
growth and attracts a large number of buyers. And economies of scale must be
possible.
RELIANCE JIO prepaid plans start from as low as Rs 19, and go up to Rs. 9,999,
while post-paid plans are available at Rs. 309, Rs. 509, and Rs. 999
denomination.
It launched its 4G service
commercially on September 5, 2016 for free and crossed 50 million subscribers
in just 83 days, and 100 million in 170 days, adding at an average rate of 6
lakh subscribers per day.
It extended the free usage period
for Jio services to its existing and new customers till March 31, 2017reaching
the 100 million user mark in the first 170 days, adding consumers at an average
of 600,000 a day.
The company said that in terms of
data usage it "has become the largest network globally" and plans to
add one lakh mobile sites in coming months to double the network size.
2. SKIMMING PRICING
: Price
skimming sees a company charges a higher price because it has a substantial
competitive advantage. However, the advantage tends not to be sustainable.

Higher price attracts new competitions
Example: APPLE INC. prices
their innovative products higher during their initial release, because the
company knows steeper prices won’t decrease customer demand for the latest
gadgets, and they benefit from the higher short-term profit margins.
One of the things to do in
Maldives is to try the underwater spa in the Huvafen Fushi resort.
3. PSYCHOLOGICAL PRICING : is a pricing and marketing strategy based on the theory that
certain prices have a psychological impact.This approach is used where the
marketer wants the consumer to respond on an emotional, rather than rational
basis.
Example: Bata uses psychological pricing as its pricing strategy. It
generally prices a product to the nearest lower“9”digit figure of the actual
price. For example, any commodity to be prices $10 is priced at $9.99 to lure
and attract more customers.
Bata started this strategy in terms of pricing its products long back, but it is still being implemented
in Bata Showrooms.
4. PRODUCT LINE PRICING: is oriented on separating goods into cost categories in order to
create various quality and feature levels in the minds of consumers. This
strategy is typically adopted where you wish to market to different customer
types or wish to anchor your products. The goal of product line pricing is to
maximize profits.
Example: Unilever Surf Excel | Ariel is a marketing line of laundry detergents made by Procter &
Gamble
1. Bundle pricing: Mcdonalds happy meal plan
2. Geographical pricing: in the gasoline industry. This practice entails oil companies charging gas
station owners different prices for the same gasoline depending on where their stations are located.
3. Promotional pricing: giving offers and dicounts like “Buy one get one” campaign.
4. Captive pricing: Razor of dollar shave club
5. Surge pricing: Ola, uber, there prices are dependent on demand and supply
6. Competitive pricing: pepsi & coca cola
DISTRIBUTION STRATEGIES
1. INTENSIVE
Distribution : A marketing strategy under which a company sells through as
many outlets as possible, so that the consumers encounter the product virtually
everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft
drinks are generally made available through intensive distribution. This
method is particularly useful for products like soft drinks, cigarettes.
Example: ITC
[Indian Tobacco Company] has the
most popular brands if cigarettes in India. The sale takes from the largest
retailers like Big Bazaar, Spencers to the smallest of paanwalas at every nook
and corner in India, thus deeply penetrated.
COCA-COLA uses an intensive distribution strategy. This is so because the
manufacturer tries to distribute their product to every outlet possible. Coke
is everywhere! Super markets, gas stations, and even clothing stores; you name
the outlet, Coke is there. Soft drinks is even one of the examples used for
Intensive distribution in the text.
2. EXCLUSIVE DISTRIBUTION: is an agreement between a distributor and a manufacturer that
the manufacturer will not sell the product to
anyone else and will sell it only to the exclusive distributor. At the same
time, even the exclusive distributor has to enter the agreement that he will
only sell the products of the manufacturers exclusively and will not sell those
of the competition. This ways, the market is an open ground for the
manufacturer and the distributor and they have complete control on the distribution
of the product.
Example:
JAGUAR [Tata Group] is sold through exclusive authorized dealerships that make it
available to the end customers. Jaguar has its own global logistics network to
support the movement of Vehicles from the manufacturing site to sales site/
showrooms. It has a network of 2700+ dealerships out of which 1000+ is jointly
branded by Jaguar & Land Rover.
3. SELECTIVE DISTRIBUTION: is a distribution approach where selective and few outlets are
chose through which the product is made available to the customers. Unlike
intensive distribution, not all available outlets are targeted and neither is
it like exclusive distribution where there is only one outlet.
A few outlets with calculated
potential are identified and then they are given the rights to stock and sell
the offerings of a company.
Example:
APPLE INC. uses a selective distribution strategy, which involves some
degree of exclusivity that could limit market reach (Greenspan, 2015). This
means that Apple has exclusively authorized retailers that can sell their
products. Despite the broad range of retailers mentioned earlier, Apple is
selective in regards to its distribution, not allowing popular retailers like
Sears, JCPenny, Bed, Bath & Beyond to sell their products. These retailers
are particularly excluded because they do not reach certain consumers. Some
people live in more rural areas and don’t always feel the need to travel, thus
not frequenting these retailers. Even though Apple has provided its product to
a lot of retailers, many don’t always carry every possible product available to customers.
PROMOTION INSIGHTS
• The Liril ad campaign (a HUL product) was to escape from daily work and feel free and relax
a feeling of freedom.
• The honey bunny song of Idea, a mobile network of Aditya Birla group didn’t get the all India
license but after that they got. The major insight was – not local, national.
• Airtel, already a market leader but to continue as a leader they have to continue their growth,
so they thought that data will be the new thing. So it is a perfect case of marketing segmentation.
They had the campaign- jo tera hai wo mera hai, jo mera hai wo tera.
STDP (CAR – SEDAN)
Volkswagen Mass market , Young Focusing on Premium,

Vento demographic executives, large market, Innovative
segmentation- businessman, upper & higher brand, Safety
Age urban family, class, Made in leader,
linkedin’s India Biggest
broad reach Programme, Automobile
vehicle safety, grand ,
fuel efficiency, experiential
“when power positioning
meets plays”
Mercedes Income Targeted On road service, TAGLINE “

Benz C-Class segmentation, people aging panoramic The Best or
higher class between 30-45 sunroof, Nothing “
affordability years concentration
alert
Maruti Dzire Geographic Targeted Highly fuel Tagline “
Segmentation people living in efficient, Desire Again
semi urban & technologically “ It not only
urban areas advanced K encourages
series engines consumers to
think
Honda City It tries to cater Consumers Distinctive Tagline “The

luxury & who have the image due to power of
premium will to have strong brand, dreams “
consumers in premium car unique comfort “Capability of
semi urban & at price of & safety dreaming,
urban areas luxury car imagining &
innovate
BCG MATRIX – COCA COLA
ANSOFF MATRIX – NIVEA
PORTER’S 5 FORCES (COCA COLA)
Bargaining power of suppliers: the bargaining power of suppliers for coca cola is very weak. It is
because the no. of suppliers is high and switching cost for coca cola is very low. While coca cola can
easily switch from one supplier to another it is not same for the supplier. Moreover, forward
integration is difficult.
Bargaining power of buyers: this is low in case of coca cola. Individual customer buy in small vol.
backward integration is not possible for both individual customer or bulk retailer. If a retailer gains
a bargaining power then it has to from a bulk retailer as it buys at a large volume. Still overall the
customer bargaining power is weak.
Threats from new entrants: there are several barriers in beverage industry such as technical barrier
– the recipe is top secret. Financial barrier- coca cola regularly invest in new research like “zero
light”, Black etc. so raising capital and getting skilled human resource are the challenges of the new
entrants.
Threat of substitutes: main substitute are Pepsi, fruit juices, thumbs up, and other hot and cold
drinks. The no. of substitute is high. Moreover, quality of these substitutes are quite good. So, threat
from substitute is quite high.
Competitive rivalry between the existing players: Pepsi and coca cola are two major players, Pepsi is
a strong existing player
PRODUCT LIFE CYCLE – MARUTI 800
1. Introduction Phase (1983 – 1986)

1st car imported & sold in 1983, huge gap between demand & supply, 3 years to clear the
resulting waiting list, sales - 48000
2. Growth Phase (1987 – 1996)
Profit increased, no threat of competitors, Production & sale increased, sales - 52500
3. Maturity Phase (1997 – 2002)
Sales touched 200,000 in 1999, repositioning of Maruti, entry of competitors like tata, Fiat,
ford
4. Decline Phase (2003 – present)
Heavy competition, decrease in sales, withdrawn from 13 cities
CONSUMER BEHAVIOUR

5. Purchase (Buyer)
· Problem Recognition: The customer must have a reason to believe what they want, where they
want or how they perceive themselves
E.g.: The customer may start searching online across various shopping websites also might have a
look at showrooms to gather information.
· Evaluation of alternatives: Customers want to ensure that they have done enough research
prior to making the purchase.
E.g.: Customer will now compare all the alternatives which are available based on requirements and
affordability.
· Purchase decision: After exploring alternatives they are deciding whether to move forward
with the purchase or not.
E.g. After examining the alternatives the customer has decided to buy a laptop that suits his/her
needs.
E.g.: The purchase process is simple/complicated what the available payment options are, is the
option of EMI available.
PRODUCT LINE EXTENSIONS – ITC
MARKET NICHER
long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells

Customer size specialist: Tree of Life(Hallmark) specializes in only Jewish greeting card and gifts
and celebrates Jewish faith.
Product specialist: UNTUCK it brand has created a new line of products for people who do not like
Specific customer specialist: Weber carburettor is a company which provides carburettors to only
MARKET CHALLENGER
these areas.
outshine the other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina”
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to
attacked it by using the punch line, “Nothing official about it”.
MARKET LEADER
Position Defence: For example, HUL increased its ad-spend on Clinic Plus and Sun silk shampoos
Flanking Defence: An ideal example is how HUL successfully nourished its first Rs.100 crore
relations.
Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the
Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS
Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound and
outbound tour operator, flouriest and so on. Such diversification into related areas comes under
Contraction Defence: For example, HUL decided to concentrate on its core business areas, that is,
soaps and detergents, and has emerged as the clear leader in
MARKET FOLLOWER
Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities
Yash Gupta
Roll no. 120
Consumer and customer -

Consumer – a consumer is a person who consumes the product, not necessary that he or she might buy
it. Consumer is the one who uses/consumes your product/service.
product which is consumed by other person then the other person is the consumer and the buyer is the
customer. Eg. A person drinking milk purchased by some other person is a consumer.
Customer - Customer is the one who buys your product/service. In simple terms he/she is the purchase
of the product/service, he pays for getting the product. A customer may or may not use it for self.Eg.
A person buying milk is a customer, a retailer buying milk to re-sale it is a customer, a company buying
milk to serve its employee is a customer.
While a customer is the person who buys the product or the one pays the price for procuring the
product.
For example Huggies is purchased by a mom (rs 499) that pack is not used by the mom but is actually
used by the baby, hence baby is the consumer while mom is the customer for that product huggies.
New product development
It is the complete process of the service or a product from conception to market.

There are 8 steps in new product development process-
For example – Happy
1. Idea generation- Idea generation refers to the stage where the systematic search for new
product idea happens.
For example – happy Milk was started by Mehal Kejriwal in December 2017. Happy Milk is a startup
which aims to to solve the serious issue of adulterated milk in the market. She got the idea when she
realized the big gap as she was delivered with poor quality milk in her house hold by her doodhwala and
this triggered her to dig deep into the problem which showed her the big gap and she came up with the
idea to eliminate the gap by offering fresh organic milk.
2 sources of idea generation -
a. Internal sources- The company finds new ideas internally. They can find ideas from the
employees, Sales force, R&D team and Owners.
example – her family, the sample she tested from her own house by herself.
b. External sources- The company can also get new ideas from external sources such as customers,
competitors, distributors/retailers. The most important external source are customers, because the
new product development process should focus on creating customer value.
Example – by watching and researching about the milking techniques used outside India.
2. Idea screening and evaluation- The next step in idea generation is idea screening where ideas
are evaluated and good ones are spotted. One of the methods used is PMI where the company rejects
the idea with a score less than 0.3, develops the idea further if it is between 0.3-0.5, and if it is greater
than 0.5 take it to the next step.
Example- she evaluated various milk and milk products samples available near her locality and in her city
and found that most of them were adulterated and was not fresh or was lacking nutritious value to it, and
milk was adulterated with detergent, glucose, white paint, caustic soda, and refined oil. Which forced her
to dig deeper and come to solution and launch happy milk. A study by Research and Markets pegged
India’s dairy industry at Rs 5 lakh crore in 2016. Co-operatives and private dairies have access to only 20
percent of the milk produced; 34 percent of milk is sold in the unorganised market while 46 percent is
consumed locally. Compare this to most developed nations where almost 90 percent of surplus milk goes
through the organised sector.
3. Concept Development and testing- Customers buys concepts not ideas. Concept is idea which
can be expressed in customer terminology. The concept is then tested with the group of target
customers.
Example – they found in their research that this was a serious health issue and no one is looking to it and
hence they thought to make the move and take the first mover advantage. And they first experimented to
extract organic milk from their farmhouse in outskirts of Bangalore and were very happy with the results.
4. Marketing strategy development- After getting positive results from testing the concepts the
initial marketing strategy is developed taking into consideration the target market.
5. Business analysis- Once decided upon the marketing strategy and product concept, the
company has to evaluate the business attractiveness. This step involves a review of the sales, costs and
profits projections.
Example - Decided they were in a position to tackle this problem at their 30-acre farm in Tumakuru, north
of Bengaluru. They bootstrapped the company – investing Rs 10 crore – and converted the farm land into
a milk farm and production unit where the consumer could trace the cow, the feed, and the quality of milk
6. Product development- In this step the actual product or service is developed, up to this step
there is only a concept which is tested, the company only has a prototype.
7. Test marketing- In this stage the product and the marketing plan is tested in realistic market
settings. This step helps the marketer to get the true picture before diving into the great expense of full
introduction.
Example – they carried out the operations in Bangalore itself and they were very happy with the response
they received.
8. Commercialization- After test marketing, if the company gets a positive nod to launch the
product, the company goes for commercialization which is introducing the product into the market.
Example - Happy Milk uses the Daily Ninja App to support its subscription model for home delivery. They
have around 3,000 customers and their products are available in around 80+ stores in Bengaluru,
including Nature’s Basket, Food Hall, and Happy Healthy Me. The brand is also available online on apps
like Big Basket Daily (BB Daily), Amazon.in,
Pricing Strategies –
· Penetration pricing strategy - is a marketing strategy used by businesses to attract customers

to a new product or service by offering a lower price during its initial offering. The lower price
helps a new product or service penetrate the market and attract customers away from competitors.
Market penetration pricing relies on the strategy of using low prices initially to make a wide
number of customers aware of a new product.
For example – reliance Jio sim card, jio was launched in India and the sim was for free and net pack
given along with the sim was also free during initial days, later the company slowly increased it to rs
99/PM for 1 GB per day which later was further increased to rs149 per 28 days with 1.5 GB data per
day. Hence it shows how the company increased the rates from offering the services free of cost to 99
per month to rs 149 for the base pack.
· Skimming pricing strategy – is a marketing strategy where high price is charged for a product
till such time as competitors allow after which prices can be dropped. The idea is to recover
maximum money before the product or segment attracts more competitors who will lower profits
for all concerned.
For example – Apple when it launched its I phone 7 and 7 plus they were priced for rs 60,000 and rs
72,000 for 32 GB variant, but slowly and gradually it went on cutting price, it further went on lowering
the prices when its competitors started giving similar features at a lower prices, and then it further
reduced the prices and the MRP came down to rs 42,000 and rs 52,000. Even then the prices were
reduced due to better technology coming more and more competition entering with new products and
features, and now at present the prices of I phone 7 and 7 plus are rs 27,000 and rs 37,650 only.
· Geographic pricing - This pricing strategy is one where different prices are charged in different
geographical locations or markets for the exact same product or service. For example, instructional
materials sold in Canada will be sold at a cheaper rate in Cameroun due to the disparity in wages,
the economy, et cetera.
For example – Wibs bread pack of 400 grams costs rs22, and for 800 grams pack rs 44 in Maharashtra
state, but if sold outside Maharashtra the price is rs 25 for 400 gms & rs 47 for 800 gms.
· Psychological pricing - This is a common pricing technique used by businesses. A minor

difference in prices is a huge difference for customers. This was started by Bata.
For example – price of a Peter England men’s formal solid shirt is priced for rs 999.
· Captive pricing - Captive products are strategically used to maximize revenue. Sellers generally
follow a product-mix pricing strategy when pricing captive products. Low price is offered for the
core product, but high prices are placed on captive products. This attracts customers to the core
product with a low price but allows sellers to make a profit off the captive products, which are
necessary to use the product. This was started by Kodak
For example – Gillette Fusion Proglide Flexball Razor costs rs 499, while the cartridges for that
particular razor costs rs 500 for a pack of 2 cartridges. Which is very high when compared with the
razor, hence company is offering razors at low price but the blades used in that razor is priced high
and hence it makes a good profit by selling the blades.
Distribution -
Distribution means to spread the product throughout the marketplace such that a large number of
people can buy it. Distribution (or place) is one of the four elements of the marketing mix. Distribution
is the process of making a product or service available for the consumer or business user who needs it.
This can be done directly by the producer or service provider, or using indirect channels with
distributors or intermediaries.
Example of distribution – HUL
HUL follows a tier 3 levels for distribution for its products to reach urban or rural markets. In HUL
first stage is manufacturing unit where the product is produced or manufacturer, then goes to c&f
agents, then the product goes to redistribution, after redistributors it goes to wholesalers, from whom
wholesalers it goes to urban or rural consumers.
At present, HUL's products, manufactured across the country are distributed through a network of
about 7,000 redistribution stockists covering about one million retail outlets. The distribution network
directly covers the entire urban population. In addition to the ongoing commitment to the traditional
grocery trade, HUL is building a special relationship with the small but fast emerging modern trade.
i) C& FAs as buffer stock points- In the recent past, a significant change has been the
replacement of the Company Depot by a system of third party Carrying and
Forwarding Agents (C&FAs). The C&FAs act as buffer stock-points to ensure that
stock-outs did not take place. The C&FA system has also resulted in cost savings in
terms of direct transportation and reduced time lag in delivery. The most important
benefit has been improved customer service to the RS. The role performed by the
Redistribution Stuckists has also undergone changes over the years. Financing
stocks, providing manpower, providing service to retailers, implementing
promotional activities, extending indirect coverage, reporting sales and stock data,
screening for transit damages are some of the functions performed by the RS today.
ii) Formation of mother report- HUL has grown manifold over the years. In the process,
the number of factories and the number of SKUs too have increased. In order to
rationalise the logistics and planning task, an innovative step has been the formation
of the Mother Depot and Just in Time System (MD-JIT). Certain C&FAs were
selected across the country to act as mother depots. Each of them has a minimum
number of JIT depots attached for stock requirements. All brands and packs
required for the set of markets which the MD and JITs service in a given area are
sent to the mother depot by all manufacturing units. The JITs draw their
requirements from the MD on a weekly or bi-weekly basis.
iii) RS Net An IT-powered system has been implemented to supply stocks to
redistribution stockists on a continuous replenishment basis. Launched in 2001, RS
Net is part of Project Leap, HUL’s endto-end supply chain initiative. Project Leap
begins with the supplier, runs through the factories and depots and reaches up to the
RSs. The objective is to catalyze HUL’s growth by ensuring that the right product is
available at the right place in the right quantities and at the right time. Leap also
aims at reducing inventories and improving efficiencies right through the extended
supply chain. RS Net is one of the largest B2B e-commerce initiatives ever
undertaken in India. It provides linkages with the RSs’ own transaction systems,
enables monitoring of stocks and secondary sales and optimises RS’s orders and
inventories on a daily basis. Information on secondary sales from Gandhidham to
Guwahati is now available on RS Net every day. RS Net covers about 80% of the
company's turnover. Today, the sales system gets to know every day what HLL
stockists have sold to almost a million outlets across the country. RS Net is part of
Project Leap, HUL's end-to-end supply chain, which also includes a back-end system
connecting suppliers, all company sites and stretching right upto stockists.
Example – distributor of liquid fragrances -
I have taken a stockist of a room fresheners Deofumes
So, it is Tier 3 distribution chain.
Particulars Price/box Margin as a % of price

paid by customer
Manufacturer 50 10
Distributor 54 12
Stockist 60 20
Retailer 68 30
customer 80
STPD -
Segmentation:- dividing a market into a distinctive groups.
Targeting:- Selecting a segment to target.
Positioning:- Developing a marketing strategy which the product in relation to rivals in order to appeal
to target segment.
Differentiation:- Differentiate the product with features, forms, quality, etc.
For example – Royal Enfield
Segmentation – Royal Enfield segmented itself on the basis of
· Demographics – age – aged (25 – 45 years of age)
Gender – male
Income level – A1,A2,A3,B1,B2 (SEC)
· Psychographic – Lifestyle – for adventure – Himalayan range
For cruising – classic , thunderbird.
· Behavioral – loyal consumer, first time buyers
Based on the above mentioned parameters for segmentation following segments have been formed –
o People of high-income group (2,00,000 per month+) of age group 18-35 who want a
powerful bike for adventure activities.
o People of middle-income group (1,00,000 per month+) of age 25 – 50 who want a heavy
bike for cruising.
o People of High-Income group (2,50,000 per month+) of age 30 – 50 who want bike for
comfort, class, and social status, and want to be the part of a social group like bullet
rider group.
o People of middle-income group (1,50,000 per month+) of age 25 – 40 who want sense
of pride, rugged manly look, who are hard core Royal Enfield fans.
Targeting -
Next, you decide which segments to target by finding the most attractive ones. There are several factors
to consider here. First, look at the profitability of each segment. Which customer groups contribute
most to your bottom line?
Next, analyze the size and potential growth of each customer group. Is it large enough to be worth
addressing? Is steady growth possible? And how does it compare with the other segments? (Make sure
that you won't be reducing revenue by shifting your focus to a niche market that's too small.)
For example – the target market of Royal Enfield is mainly premium customers who are working
executives belonging to age group 25 – 45 years, who are looking for a premium bike for leisure and
cruising purposes.
Also different target markets are targeted with specific products, based on their characteristics for e.g.
–
· Working executives, who want a premium bike for cruising purposes and are a loyal hardcore
Royal Enfield Fans. – Royal Enfield Continental GT 535 CC, Royal Enfield Thunderbird 350 CC.
· People who are Adventure lover, who love thrill activities and long rides in hilly areas or prefer
off roading of age group 25 – 35. - Royal Enfield Himalayan 400 CC.
· Premium customer who wan comfort, luxury and safety belonging to A1, A2, A3, group, of age
30 – 50 years. - Royal Enfield Classic 350.
Positioning – your goal is to identify how you want to position your product to target the most
valuable customer segments. Then, you can select the marketing mix that will be most effective for
each of them.
For example – Royal Enfield positions itself as – “Strong, Sturdy, Manly Premium bike” and its tag
line “Built Like a Gun” throws the same message, and its positions itself as a bike for the one who are
strong, Independent, strong Premium Individuals.
Differentiation - Differentiation is a marketing strategy that strives to distinguish a company's

products or services from the competition. Successful product differentiation involves identifying and
communicating the unique qualities of a company's offerings while highlighting the distinct differences
between those offerings and others on the market. Product differentiation goes hand-in-hand with
developing a strong value proposition to make a product or service attractive to a target market or
audience.
For example – Royal Enfield conveys the following to its customers, and target markets –
Differentiation based on customer social and psychological needs
· ‘Royal Enfield is in the business of selling lifestyle, not transportation’
· Bike for touring
· Bike for cruising
Creating customer value by sponsoring various adventure activities, owner’s club activities
Bike for Leisure and Adventure Travel
BCG Matrix – Dabur
Question Marks: These parts of a business have high growth prospects but a low market share. They
consume a lot of cash but bring little in return. In the end, question marks, also known as problem
children, lose money. However, since these business units are growing rapidly, they have the potential
to turn into stars. Companies are advised to invest in question marks if the product has the potential
for growth, or to sell if it does not.
For eg – New U, Balsara,
Stars: The business units or products that have the best market share and generate the most cash are
considered stars. Monopolies and first-to-market products are frequently termed stars. However,
because of their high growth rate, stars consume large amounts of cash. This generally results in the
same amount of money coming in that is going out. Stars can eventually become cash cows if they
sustain their success until a time when the market growth rate declines. Companies are advised to
invest in stars.
For eg – Red toothpaste, Gulabari, Real fruit Juice
Cash Cows: Cash cows are the leaders in the marketplace and generate more cash than they consume.
These are business units or products that have a high market share but low growth prospects.
According to NetMBA, cash cows provide the cash required to turn question marks into market
leaders, cover the administrative costs of the company, fund research and development, service the
corporate debt, and pay dividends to shareholders. Companies are advised to invest in cash cows to
maintain the current level of productivity, or to "milk" the gains passively.
For eg – Hajmola, Chayamanprash, Amala Hair Oil
Dogs: Dogs, or pets as they are sometimes referred to, are units or products that have both a low
market share and a low growth rate. They frequently break even, neither earning nor consuming a
great deal of cash. Dogs are generally considered cash traps because businesses have money tied up in
them, even though they are bringing back basically nothing in return. These business units are prime
candidates for divestiture.
For eg – Dabur strong Balm, Lal Powder.
Some statistics for BCG –
· FMCG industry size : 2008 – 856 billions, 2009 – 1024 billion, 2010 – 1161 billion.
· Penetration levels – toothpaste (urban – 77%, rural – 42%), shampoo (urban – 57%, rural –
37%), Hairoil(urban – 80%, rural – 67%), Skin Cream (urban – 32%, rural – 18%),
· Revenue share – in consumer care division (personal care , home care, foods) – 72%, consumer
health division – (8%)
· Consumer care categories –
o hair oil – Dabur(16%), Bajaj(7%), others(37%), Marico(31%), Emami(3%), Dey’s

Medical(6%),
o Shampoo - Dabur(6%), HUL(45.5%), p&g(23.8%), Cavinkare(13.5%),

others(11.2%),
Similarly gathering all the data for different categories.
Ansoff Matrix -
grow and also analyzes the risk associated with each strategy. Learn more about strategy in CFI’s
Business Strategy Course.
For example – Titan
Market Penetration
In a market penetration strategy, the firm uses its products in the existing market. In other words, a
firm is aiming to increase its market share with a market penetration strategy.
The market penetration strategy can be done in a number of ways:
· Decreasing prices to attract existing or new customers
· Increasing promotion and distribution efforts
· Acquiring a competitor in the same marketplace
Example – titan presently is trying to do the same, they are giving 50 % discounts presently as they
also have to fight with fit band and other fitness wearables. Growth rate in the industry is becoming
stagnant. And hence they are giving attractive offers by decreasing prices, are heavily promoting
through google ads. And in an recent interview Bhaskar Bhat, MD titan said “Margins not the problem
in watch business, growth is”
Product Development
In a product development strategy, the firm develops a new product to cater to the existing market.
The move typically involves extensive research and development and expansion of the product range.
The product strategy development strategy is employed when firms have a strong understanding of
their current market and are able to provide innovative solutions to meet the needs of the existing
market.
The product development strategy can be done in a number of ways:
· Investing in R&D to develop new products to cater to the existing market
· Acquiring a competitor’s product and merging resources to create a new product that better
meets the need of the existing market
· Strategic partnerships with other firms to gain access to each partner’s distribution channels
or brand
For example – Titan recently launched Titan Juxt, a smart watch, mainly to fight the smart watch
market and to defend its shrinking share amongst the new competitors like Fitbit. Which has caused
somehow treats to titan. Titan had developed Juxt to safe guard its existing market and also to get a
chunk in smart watch industry. Also titan recently made a partnership with amazon in which Amazon
will sell Titan watches through its global selling program that allows local merchants from India to
sell in other countries.
Market Development
In a market development strategy, the firm enters a new market with their existing product(s). In this
context, expanding into new markets may mean expanding into new geographies, customer segments,
regions, etc. The market development strategy is most successful if (1) the firm owns proprietary
technology that it can leverage into new markets, (2) consumers in the new market are profitable (i.e.,
they possess disposable income), and (3) consumer behavior in the new markets does not deviate too
far from the existing markets.
The market development strategy can be done in a number of ways:
· Catering to a different customer segment
· Entering into a new domestic market (expanding regionally)
· Entering into a foreign market (expanding internationally)
For example – Indian retail brand Titan is all set to enter the United States through a partnership with
Amazon. Titan has entered into a strategic partnership with the Seattle-based e-commerce giant’s
global selling program to retail its watches category in US with plans to expand to Europe and Japan
in the coming years. Titan Skin is trying to enter in to newer segment of perfume, it has presently
captured a good market also, but it still has a lot to go.
Diversification
In a market development strategy, the firm enters a new market with a new product. Although such a
strategy is the riskiest, as market and product development is required, the risk can be mitigated
through related diversification.
There are two types of diversification a firm can employ:
1. Related diversification: There are potential synergies to be realized between the existing business
and the new product/market.
For example, Titan is getting more into wearables and accessories, Titan is now into launching smart
wearable devices, Titan has also come up with Titan Connected, and Bluetooth enabled wallets.
2. Unrelated diversification: There are no potential synergies to be realized between the existing
business and the new product/market.
For example, Titan’s skin was a entry to an totally unrelated market being from watch manufacturers
to entry into Eye wear and perfume sectors are the perfect examples of unrelated diversification.
Porter’s 5 forces
For example - mobile phone service provider (telecom industry)
1. Threat of new entrants- Entry barrier is high because there is need for high investments to
enter into the telecom industry and also there are complex regulations related to licensing in this
sector.
2. Bargaining power of suppliers- The bargaining power of suppliers is low as there are a lot of
mobile phones manufacturers in the market.
3. Bargaining power of customer- The bargaining power of customers is high as there are options
available in the market and also the switching cost is zero, but recently with the increase in tariffs
by all the leading competitors simultaneously one can argue that the bargaining power of customers
has decreased.
4. Threat of substitute products- Threat of products is low, but with the increase of dominance of
internet wifi’s would soon become substitutes as there would not be the need of calling or sim cards
as with local wifi connectivity people would not have the need for calling using their operators’
network.
5. Rivalry amongst competitors- the rivalry amongst competitors is very high as one can all the
prices and the services provided by all competitors are almost the same.
6. Exit barrier- There is a high barrier on exiting this sector as with the huge investments on
infrastructure comes huge debts and these investments are to be made constantly with the increase
in the demands of the customers. So, the company cannot exit before paying its dues.
Consumer Buying Process –
Buying problem arises only when there is unmet need or problem is recognized. Need or problem
impels an individual to act or to buy the product.
For example – I could have an unmet need of not been able to play hardcore games on my current laptop,
or I could get into a problem if I get word or PowerPoint assignment and I don’t have a laptop, hence both
the factor unmet need and the problem recognized will trigger me to buy a laptop and hence the process
of consumer buying begins at this point.
television, visit showroom or dealer, contact salesman, discuss with friends and relatives, and try all
the possible sources of information.
For example – now I might discuss the problem recognized or about my unmet need with my friends who
might recommend me with certain solutions, and brands to buy so satisfy my need. In other words, I would
try to search information about the various options available and brands available via different sources.
Sources like –
i. Personal Sources: my friend Recommending me about Mac book Air, OR Alien ware or
Legion Y540.
ii. Commercial Sources: Asus Hoarding, Acer pamphlets
iii. Public Sources: watching Lenovo ad in newspaper, Dell ad on radio
iv. Experimental Sources: me getting weekly trial of Vivobook series 15.
attractive. Evaluation calls for evaluating various alternatives with certain choice criteria.
For example – I will select Lenevo idepadS340, Apple Mac Book Air, Legion Y540 as my potential laptops
keeping in mind budget, need and my wants, features available, services offered and other similar
parameters.
Following criteria are considered while evaluating alternatives:
· Benefits offered by the brands – Extended Warranty, Insurance etc.
· Qualities, features or attributes, and performance – Processor, graphic card

· Price changed by various brands – Apple charging premium, Asus charging Economical
· History of brands – Services offered, Quality of staff support,
· Popularity, image or reputation of brands – Apple’s good brand image, Status, Asus Pocket
Friendly image
· Product-related services offered by the brands, such as after-sales services, warrantee, and free
installation – After sales, warranty, Parts Replacement, Re-Selling
· Availability of brands and dealer rating – Services offered by the dealer, Availability of Products,
Convenience from my home.
former stage helps consumers evaluate various brands in the choice set. The brand that offers
maximum benefits or satisfaction is preferred.
For example – after I have selected my most preferred laptop Lenovo IdeapadS340 based on the benefits
it offered over other brands like Apple, Asus I will further evaluate some factors before buying like –
· Attitude of others – Is reputation of Lenovo amongst other good, what my friends think about the
brand. Apple’s status Factor, Asus Stylish look
· Unanticipated Situational Factors – Apple’s MacBook Air increased Tariffs due to GST Slab
change, and shift in production plant.
· Consumer perceived Risks – Poor Service from Asus, Low features from apple and costly
accessories.
And hence after analyzing all such parameters and factors in my mind I will select a particular rbrand
and a product Lenovo IdeapadS340.
Consumer buys the product with certain expectations. Though he decides very systematically, there is
no guarantee of a complete satisfaction. There is always possibility of variation between the expected
level of satisfaction and the actual satisfaction. His subsequent behaviour is influenced by degree of
satisfaction/dissatisfaction.
For example – after buying the laptop I would see that whether my needs my expectations are met or not,
and will access the laptop based on certain more parameters like –
· Post purchase satisfaction – am I able to make mt PPts, play games, battery life
· Post purchase action –
o Satisfied – Will recommend Lenovo IdeapadS340. To my friends and family, and will
spread positive word of mouth.
o Dissatisfied – Will Complain About the brand, about the product, say negative things to
family and friends for the brand and hence will do negative publicity of the brand.
· Post purchase use and disposal – I have bought product for games and PowerPoint, but I might
use it more for coding, or watching movies etc.
Product Life Cycle -
Products, like people, have life cycles. The product life cycle is broken into four stages: introduction,
growth, maturity, and decline. This concept is used by management and by marketing professionals
as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new
markets, or redesign packaging.
The process of strategizing ways to continuously support and maintain a product is called product life
cycle management.
For example –
INTRODUCTION STAGE (1983-1986)
· MARUTI UDYOG LIMITED Launched first ‘MARUTI 800’, in Indian market on December
1983.
· It’s a collaboration between INDIAN STATE owned MARUTI and SUZUKI MOTOR JAPAN.
· Cheapest car in the Indian market.
· Also exported to countries like South Asia and South American market.
· First car was presented to Lord Venkateswara of Tirumala Venkateswara temple.
· First car was sold to Harpal Singh for Rs.48,000/- as a lucky owner and received keys from
Prime Minister of India INDIRA GANDHI.
GROWTH STAGE (1987-1996)

· MARUTI 800 comes up with new features like , AC version and Music System in the car.
· Sales increased by 852 units to 20,269 units and reached up to 31,314 units
· First export began in 1987.
· Sales soared from about 63,763 units to about 1,89,061 units in 1996.
· Strategies adopted:- Customer care has became a key element for Maruti,
· Increased Maruti service stations every 25 kms on a highway,
· For increasing its market share it launched new car models.
MATURITY STAGE (1997-2002)
· In 1997, MARUTI introduced a new car with Jelly Bean shape. However, it was not so successful
in the market.
· Launched revamped version of MARUTI 800 EX, with new engine, shock absorber, coil spring
suspension, but this model lost their sales gradually.
· Entry of competitors like General Motors, Ford, Tata.
· In 2002, MARUTI launched ‘ALTO’, with bigger stylish version of the Maruti 800.
· Introduced LPG & CNG variables, called Maruti 800 Duo with new face lifts like newer grille
and clear lens head lamps
· Strategies adopted at this stage:
o Pricing strategy: – categorizing to all segments, car priced at Rs. 1,87,000/- is the
lowest offer on the road
o Developed different revenue streams in the form of Maruti insurance, Maruti finance.
o Repositioning of Maruti products
o Introduced new facelifts model based on market responses or consumer feedbacks or

the competitors moves
o Customer centric approach: call centers bring Maruti to closer to its customer.
o Committed to motorizing India Partnership with STATE BANK OF INDIA

organized finance to small towns enable people to buy cars in Rs.2599/- scheme
DECLINING STAGE (2002 – UPTO NOW)
· Due to heavy competition from competitors like Hyundai i10 and Chevrolet Spark, sales of
Maruti 800 was drastically decreased.
· The sales went down from 1,51,976 units in the year 2000 to about 69,553 in 2007.
· Buyers were attracted to cheap small cars like NANO.
· In 2008-2009 experienced a drastic reduction in sales.
· Major competitor Tata Motors launched Tata Nano, which was smaller and yet offered more
space than the Maruti 800
· Sales are continued in semi urban and rural areas till today .
· Now in 2012 Maruti introduces ALTO 800 in the place of Maruti 800.
Consumer buying roles – the 5 types of consumer buying roles are –
i. Initiator:
For example – in a family a housewife might initiate saying the need to buy new house due to many
number of possible reasons like – less no. of rooms, bad localaity, poor environment or others.
ii. Influencer:
For example – kids in the family or the uncle might be the influencer who will suggests good locality
to the family head, who will suggest various options and benefits associated with it.
iii. Decider:
A person who decides on any component of a buying decision; whether to buy, what to buy, how to
buy, or where to buy.
For example – in the same family even if everyone has selected a prefferd common house but the
decision maker say grand mother will take the final call if the house has to be bought or not she might
see other factors relating to house also like vastu, and then she will make a final call whether to buy or
not to buy.
Iv Buyer:
For example – the main earning person say the eldest son of the family will pay for the house.
V User:
for example – the people who are going to live in the house. It might also be possible the buyer(dad) or
any other party might not use it like if the house if purchased for investment purpose and has been
given to a family friend, for him to stay.
Product line extension -

A product line extension is a new product that is slightly different to a company’s existing
range. Line extension refers to the expansion of an existing product line.
For example – Maggie came up with Maggie aata noodels.
Brand Extension
Brand extension refers to the expansion of the brand itself into new territories or markets.
For example – Titan entering into perfumes via titan skin.
Product Mix -
Product mix, also known as product assortment, is the total number of product lines that a company
offers to its customers. The product lines may range from one to many and the company may have
many products under the same product line as well. All of these product lines when grouped together
form the product mix of the company.
Width
The width of the mix refers to the number of product lines the company has to offer.
For e.g., If a company produce only soft drinks and juices, this means its mix is two products wide.
Coca-Cola deals in juices, soft drinks, and mineral water and hence the product mix of Coca-Cola is
three products wide.
Length
Length of the product mix refers to the total number of products in the mix. That is if a company has
5 product lines and 10 products each under those product lines, the length of the mix will be 50 [5 x
10].
Depth
The depth of the product mix refers to the total number of products within a product line. There can
be variations in the products of the same product line. For example – Colgate has different variants
under the same product line like Colgate advanced, Colgate active salt, etc.
Consistency
Product mix consistency refers to how closely products are linked to each other. Less the variation
among products more is the consistency. For example, a company dealing in just dairy products has
more consistency than a company dealing in all types of electronics.
Example – product mix of HUL –
Market Leaders:
• Position defence: Gillette is the market leader and to retain its position the company entered
into women’s segment and launched products like women’s razors, Venus, Foams. Goodnight to retain
its position as market leader launched a new product (fast card) which does not even require
electricity. As a result it successfully penetrated into rural market.
• Flanking defence: Maggie launching atta noodles (Taste bhi health bhi). Coke and Pepsi
launching a diet coke/ low sugar drinks.
• Pre emptive defence: ITC venturing into hotels. ITC venturing into retail. Parley going from
biscuits to chocolates and juices (frooti).
• Mobile defence: Facebook acquiring whatsapp.
• Counter offensive defence: The Hindu vs. Times Of India.
these areas.
3. Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention
4. Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina”
Market nichers:
long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells school
Vertical level: Purple Panchi is an example of vertical level specialist it specializes in making women’s
ethnic wear only. specially lenghans and kurtis.
Geographic specialist: Bombay Shaving Company is an example of geographic specialist. It’s

production and target audience was initially strictly restricted to the city of Mumbai. And meera
shampoo which is restricted to south India only.
Customer size specialist: Tree of Life (Hallmark) specializes in only jewish greeting card and gifts and
celebrates Jewish faith. Alto moda a plus size store are also example of this as it is only for people with
plus size needs.
Product specialist: UNTUCK it brand has created a new line of products for people who do not like
tucked shirts. It gives you a feel of a tucked shirt without actually tucking it. Sabyasachi is also another
example of this.
Specific customer specialist: Weber carburettor is a company which provides carburettors to only high
end cars like Porsche, Ferrari, BMW. Sensodyne and nicotex are also the examples.
Market Followers
The innovator bears the expense of developing the new product, bringing in the technology, breaking
entry barriers and educating the market. However, another firm can come along and copy or improve
on the new product.
1. Adaptors
These market followers have similar products but they try to adapt from their closest competition.
Adapters can soon become leaders as well because they can adapt, learn and make a better product
than the higher competition. Example- In the year 2004, Dish tv came up with DTH connection, which
was then adapted by tata sky which came in the year 2006 with added features of recording etc.
2. Imitators
Imitators leverage on the features of the product they make the same product but use their own brand
name.
The difference might be that the new product is made from poor material or that it does not have the
service or promise that your brand can offer. Nonetheless, there is a huge market for imitators where
people want to buy products at lower cost as they cant afford the higher one.
Example- Imitation jewellery, having the same designs like that of a Tanishq.
3. Cloners
Cloning means making the same product as yours, but with very subtle difference. Cloning makes
advantage of the top brands and makes same to same products.
Example-
4. Counterfeiters
This an act of piracy, were brand name is totally same, it is illegal.
Sarthak Daxini
Roll no - 74
Consumer & Customer

Consumer:
· The consumer is the one who consumes the goods, i.e. the user of the goods.
· Consumer may or may not have paid for the goods himself.
· Goods bought are for consumption only.
· Example - Bournvita (or any other malted food drink) targets mothers in their communications
to convert it into a purchase. As mother is very much emotionally attached to the health and well
being of the child and malted food drink are targeting the extra nutrients which it provides which
will help the child grow in a balanced way.
Customer:
· Customer refers to a person who buys the goods or services and pays the price for it.
· Customer is the one who always pays for the goods or services bought by him.
· Goods bought maybe for consumption or resale.
· Example - Kinder Joy is a well know chocolate for children. In this case consumer (child) is
targeted in all the communication as he is a very good influencer in making the purchase.
New product development (NPD) is the process of bringing a new product to the marketplace.
'New products' can be:
· products that your business has never made or sold before but have been taken to market
by others
· product innovations created and brought to the market for the first time. They may be
completely original products, or existing products that you have modified and improved.
Steps/stages included in the NPD process:

· Idea generation.
· Idea screening.
· Concept development & testing.
· Marketing strategy development.
· Product development.
· Test marketing.
· Commercialization.
Example – NIRMA
· Karsanbhai Patel realised that only MNCs were selling detergents in India and the country
lacked an economy brand detergent.
· Sensing a huge opportunity, his anxiousness to bridge the gap increased and Karsanbhai
started experimenting with chemicals. Soon he was successful in producing a good quality
detergent NIRMA at a much cheaper cost which was an instant hit in the market.
· As soon as Karsanbhai Patel discovered the magical formula; he defined the target segment to
which his detergent will cater to. He knew that the competitor brand Surf was a premium brand
sold in tier 1 cities so he focused on selling his brand in tier 2-3 cities. In order to get more customer
traction, he priced his detergent low and made it a mass brand.
· Soon, people from lower middle class and middle class accepted the product and it captured the
market quickly. Where most companies followed the traditional way of top down approach i.e.
expanding from metro cities to rural towns; Nirma did the opposite and changed the whole game.
· Nirma started with a low cost detergent for low income groups, but later launched products like
Nirma Sandal soap, Nirma Beauty soap etc. for the higher income groups.
· Diversifying the portfolio not only reduces the overall risk of failure of the company but also
helps the company to cater to varied segments.
· “Dudh ki safedi Nirma se aaye, Rangin kapda bhi khil khil jaaye. Sabki Pasand Nirma” the
same jingle has been used for 35years which created an emotional attachment with the consumers.
Pricing Strategies
Pricing is the method of determining the value a producer will get in the exchange of goods and
services. Simply, pricing method is used to set the price of producer’s offerings relevant to both the
producer and the customer.
Some of the pricing strategies are:
· Bundle Pricing – Bournvita + Oreo
· Geographical Pricing – Nandini Milk
· Promotional Pricing – Amazon coming up with Prime for cheaper rates than usual
· Skimming Pricing – Samasung for the upcoming foldable handset

· Penetration Pricing – Jio
· Premium Pricing – Louis Vuitton
· Psychological Pricing - Bata
Example- AMUL
· Amul from starting only when there were no national player as there competitor has a vision to
provide the best quality dairy products with a very low cost to consumers of all economical
segments.
· With the same initiative they have followed the low pricing strategy in their marketing mix. To
make this strategy follow they segmented out their own products.
· Products which covers a huge market segment and are used on the daily basis like milk, ghee,
ice-cream, cheese, butter were provided to the consumers at a lower rate in comparison to
competitors whereas the price of products which were of niche segment like amulspray, prolite,
milk powder were completion oriented. Mostly Amul follows a strategy which is more incline
towards market.
· In Amul GCMMF sets up the price range of different products which is based on different
factors like raw materials, labor cost, distributors margin, farmers profit, Administrative and
manufacturers overhead, demand and supply of products, competitors prices, transportation cost,
packaging cost, govt. taxes etc.
· With the rise in Indian economy transportation cost, storage cost has piled up but still Amul
provides quality products at a fair and affordable price in comparison to others.
Distribution/Place
Distribution is the process of making a product or service available for the consumer or business user
who needs it. This can be done directly by the producer or service provider, or using indirect channels
with distributors or intermediaries.
Strategically there are 3 approaches to distribution-
· Mass Distribution
· Selective Distribution
· Exclusive Distribution
Example - AMUL
· One of the key reason of Amul to stand at the top in such a volatile market with overloaded
competition is because it has an enormous distributive channel which covers almost all parts of our
country.
· Amul’s whole model works on collecting the raw material in mass and then keep it chunking
down into small and small size which finally reaches as a single unit to consumer.
· There are two distinct channels through which Distribution occurs in Amul. One is the
acquisition channel which is in charge of gathering of Milk through dairy co-agents. The other is
the distribution channel which is in charge of circulating the concluded item to the end clients.
· In the acquisition channel Amul works up with farmers then to village co-operative society then
it goes to manufacturing units then to company depots, wholesale distributors and finally to
retailers.
· There is also one more channel which consist of carrying and sending specialists who helps in
minimizing the administrative and transportation costs.
Promotion
Promotion refers to any type of marketing communication used to inform or persuade target audiences
of the relative merits of a product, service, brand or issue. The aim of promotion is to increase
awareness, create interest, generate sales or create brand loyalty.
Example – Amul
· Amul is one of the fewer company who is in charge of one of longest and successful campaign
with a promotional character – The Amul girl.
· Amul generally uses the current news scenario in their promotion that too in a little sarcastic
manner which connects the user.
· Most of their promotion is mainly for butter. As Amul has always stand at the top edge so it
doesn’t spends more than 1% of its revenue on promotion because it would directly influence the
cost of product.
· With an increase in the number of e-commerce users recently Amul has also shifted on e-
commerce platform with an Amul online app through which they could deliver products to e-
commerce users. This app also has helped Amul in promoting their brand through different social
media sites i.e. through digital marketing.
STPD
Example – Lifebuoy Soaps
Segmentati Targetin Positionin Differentiat

on g g ion
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· · Rural health as well
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· · Deo –
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BCG Matrix
Cash Cows:
There are 2products of Amul that fall under cash cow category – Amul Milk &Amul Butter.
Owing to the limited chances of industry growth, Amul has introduced new variants to maintain its
market leadership – Amul Butter Lite, Amul Taza Milk etc to target health conscious consumers.
Stars:
Amul Ice Cream, Amul Ghee and Amul Cheese are Star category products of the company. These
have a high market share and a good potential to grow in future as well.
Question Marks:
Amul Lassi and Flavoured milk have been marketed with the aim to increase the market share and
compete with other beverages in the market.
Considering the increasing interest and demand for healthy products and beverages, the healthy milk
from Amul poses a great potential to grow in the near future with a condition that it is marketed well.
Dogs:
Amul Cookies & Amul Chocolates are some products which can be considered as Dogs for Amul.
Due to heavy competition and limited innovation that these product categories face, its becoming
difficult for Amul to gain market share for these products and make them a viable revenue generator.
Porters 5 forces
Dairy Industry
· Competition – High
· Threat of New Entrants – Low
· Bargaining Power of Suppliers – Low
· Bargaining Power of Buyers – High
· Threat from Substitutes – High
Ansoff Matrix
Example – Amul
Market Penetration – Milk & Ice Cream
Product Development – Amul Taza Milk, Amul Butter Lite
Market Development – Shrikhand in other Countries (Amul is present in 20 plus Countries)
Market Diversification -
Product Life Cycle
Example – Moto G (Motorola)
Introduction: (Feb’ 14)

Flipkart, digital marketing, reviewed, unboxing.
Growth: (Feb’14)
20,000 Units of Moto G 16GB were sold in 15min.
Maturity: (March – June’14)
Motorola experienced its highest sales from Moto G. Sold 1million devices within 5months
Decline: (July – August’14)
Competition from Asus ZenPhone 5, Xaomi Mi3
Moto G 2nd Generation was launched in September’14.
Market Nicher:

Product specialist: UNTUCKit brand has created a new line of products for people who do not like
Specific customer specialist: Weber carburettor is a company which provides carburettors to only high
end cars like Porsche, Ferrari, BMW.
Market challenger
these areas.
outshine the other.
Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very
Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to
Market follower
Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities
Market Leader
relations.
3. Pre-emptive Defence: For example, Titan launched more brands and sub-brands to corner the
4. Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets,
defence strategies.
Consumer behaviour
5. Purchase (Buyer)
Ex- my grandmother recognized the need to buy a mobile phone (she is the initiator) then my sister
did the information search that which phone will be best suited for her (gatekeeper) my mother acted
as influencer by saying that she should buy this phone because of these features (influencer) the
decision maker was my grandmother herself. Buyer in this case was my sister who got it purchased
from the shop. The end user is my grandmother.

Ruicha Agrawal, Roll no 105
CUSTOMER AND CONSUMER:
Pampers diapers belong to baby products category. Parents who buy the product for their babies, so parents
become the customers here and the babies are the actual users of the product and hence become the
consumers.
NEW PRODUCT DEVELOPMENT (NPD):
The Real Man, Beard wash
An increasing number of men in India are becoming image-conscious and taking care of their skin and hair.
Similarly, to head hair, facial hair also needs to be looked after. The Real Man’s beard wash claims to
soften and relieve itching; it features a very gentle lather that is soft enough for the face, and tough enough
to handle curly, coarse beard hairs. According to the manufacturer, the beard shampoo is chemical,
sulphate and paraben free, which improves and retains the hair's natural oils and reduces frizz over time.
TATA NANO:
Idea Generation:
• To create a safe, affordable and all-weather form of transport for families.

• To create an option for people who want to move from a 2-wheeler to 4-wheeler – at the price of a
2-wheeler
Idea Screening:
• A scooter with 2 extra wheels at the back?
• An auto rickshaw with 4 wheels
• 4-wheeler car made of engineering plastic
• But the market demand was for a car and not a scooter
• When people were asked as to why a 4-wheeler was an aspiration – they said that they would have
• 4-wheeler had an emotional appeal, not just a practical one
• Establish a factory in a tax-free zone
• Get the tax advantage on infrastructure
• Get the suppliers to establish a base near the factory
• Get special concessions from state government
• Design inputs from institute of Development in Automotive Engineering, Italy
• Constant design changes
• Design adaption from Daewoo Matiz and Tata Indica
• 37 patents associated with the design of Nano
• The nano is constructed of components that can be built and shipped separately to be assembled in a
Test marketing:
• Crash testing
• Testing on torture trucks

Commercialization:
• Launch the product
• Produce and place advertisements
• Fill the distribution pipeline.
PRICING STRATEGIES:
a. Penetration:
In India, Dell used penetration pricing strategy because the Indian market are highly affected by the price.
It increased it sales as compared to HP,Sony and other competitors
b. Skimming:
Sony PlayStation 3 used skimming strategy when it came into the market and charged it at 40K in India
and later reduced it to 15K.
c. Premium pricing:
The brand enjoys an association with prestige and status in the society, hence it follows premium pricing
for its products. Also, the target group are the people who value exceptionality above money and more
willing to pay higher price. Tanishq also offers some value products, for targeting a different segment. This
line’s product are simpler in designs, although promise the same quality and trust.
d. Product line pricing:
Product line pricing is the bread and butter of the automobile industry. All good automobile manufacturers,
like the aforementioned Toyota with their Toyota/Lexus product line, are acutely aware of the fact that,
while cars are hugely useful, buying power ranges widely among consumers. That makes product line
pricing, being able to cater to different customer segments, key to their success.
e. Economy Pricing:
D-Mart is a departmental store and believes in levying an economic pricing policy for its products. The
company has taken a low-cost approach to target that group which is price sensitive. As mass merchandise
is its mantra it has kept prices at reasonable and economic rates so that a customer can easily purchase it.
D-Mart has adopted a simple strategy of garnering huge sales through affordable prices and keeping price
range within reach of customers is its top priority.
f. Psychological Pricing:
Bata uses this psychological pricing in all its products. All products are priced like 999.99, 399.95 etc
g. Competitive pricing:
Jio announced that it will reduce its prices only if other operators also slash it down
h. Customer segment pricing:
Railway ticket fare that varies for an adult, a senior citizen and a child below 12 years of age.
i. Location pricing:
Nandini milk, that is produced in Karnataka is sold at 48/- in South India whereas it cost 52/- in rest part of
India
j. Time Pricing:
Mainly seen in tourism industry where the hotels increase the price of the rooms due to peak season time
like in summers the hotel room cost will be high in the North and low in South due to the session and
vacations
k. Dynamic Pricing:
MakeMyTrip uses dynamic pricing to change the rates of the hotels and flights analysing the demand and
hits on the website dynamically
DISTRIBUTION:
PROMOTION:
While P&G’s Tide competes with HUL’s Rin at the same time P&G’s Ariel competes with HUL’s Surf
Excel.
Ariel targets upper middle-class segment who own washing machines and are willing to pay a premium for
benefits like fragrance and colour preservation.
In this light, Ariel’s #ShareTheLoad talks directly to it’s target audience. It talks to an audience that is
changing with time and is progressive in a society that takes them for granted. A brand like Ariel is fairly
known so this positioning and stand makes it stand out not only from cheaper substitutes but is also a
fitting reply to the long running “Daag Acche Hai” — Dirt is good campaign of its closest competitor.
SEGMENTATION, TARGET, DISTRIBUTION & PROMOTION:
AXE (Parent company HUL):
Segmentation: Axe took into consideration all the four factors of segmentation:
1. Geographic: Semi-urban and Urban areas
2. Demographic: Age group of 16-35 years; gender- male; Occupation- Student or bachelors
3. Psychographic: lifestyle- outdoor oriented; Personality- fashion oriented,
4. Behavioural: Benefits- high quality, economic; usage rate: Medium
Target: Axe targeted Male population of age group 16-35 years, those who are young at heart. Target
youngsters that deo will help them to attract girls
Positioning: Axe used extensive TV ads and campaigns. They have stylish bottles to catch more eyes.
Positioned itself as a product to buy if you want to attract ladies.
Differentiation: Axe did various event sponsoring to reach maximum target group. It had no secondary
packaging thus differentiating from other competitors by minimum wastage factor.
BCG MATRIX: (Nestle, India)
(X axis: right to left indicates increasing relative market share; Y-axis: bottom to top indicates
increasing market growth rate)
ANNSOFF MATRIX:(McDonald’s, India)
POTER’s FIVE FORCES model:
(Coca-cola)
1. Bargaining power of suppliers:
The bargaining power of suppliers of Coca Cola is weak. It is so because the number of suppliers is high
and the switching costs for Coca Cola low. While Coca Cola can easily switch from one supplier to
another, it is not possible for any supplier to switch away from Coca Cola as easily.
2. Bargaining power of buyers/customers:
The bargaining power of individual customers in case of Coca Cola is low. Individual customers generally
buy small volumes and they are not concentrated in specific markets either. However, the level of
differentiation between Pepsi and Coca cola is low. Mostly they sell similar flavours. Switching costs are
not high for customers and still the two brands enjoy high brand loyalty. The customers of coca cola are not
price sensitive. Backward integration is not a possibility for the customers whether it is an individual
customer or a large retailer. If a retailer acquires some bargaining power then it is only because it buys in
large volumes. Still, overall the customers’ bargaining power is weak.
3. Threat of new entrants:
The level of customer loyalty in the industry is moderate and for any brand to build customer loyalty it will
take some time. So, while new entrants can compete with brands like Coca Cola at a smaller or local level,
to build a brand as big is a mammoth task requiring both capital and skilled human resources.
4. Threat of substitutes:
Main substitutes of Coca Cola products are the beverages made by Pepsi, fruit juices, and other hot and
cold beverages. The number of substitutes of Coca Cola products is high. There are several juices and
other kinds of hot and cold beverages in the market. The switching costs are low for the customers. Apart
from it, the quality of the substitute products is also generally good. So, based on these factors the threat
from substitutes is strong.
5. Competitive Rivalry between the existing players:
There are two major players in the soda industry, and they are Coca Cola and Pepsi. There is intense rivalry
between the two major players. There are a few smaller players too but they do not pose a major
competitive threat. The two main players are nearly of the same size and they have similar products and
strategies. The level of differentiation between the two brands is also low and therefore the price
competition is intense. People have already heard of the Cola wars. So, the level of competitive rivalry
between the existing firms is a strong force.
PRODUCT LIFE CYCLE (Maruti 800)
1. Introduction Stage (1983-1986)
a. First car imported, assembled and sold in 1983.
b. Cheapest car in the market
c. Huge gap between the demand and supply
d. Waiting list often toom 3 years to clear
e. Targeted urban market` where consumers who desire to own a car.
2. Growth Stage (1987-1996):
a. Expectations from the people matched the product

b. Increase in production and sale
c. Increase in profits
d. Objective to gain the market
e. No threat of competitors
3. Maturity Stage (1997-2002):
a. Sales touched 200000 mark in 1999
b. Repositioning of Maruti products
c. New soft edged jelly bean shape introduced in 1997
d. 40 million 2 wheelers owners targeted.
e. Entry of competitors like GM, Ford, Tata
4. Decline Stage (2003- till date):
a. Heavy competition from i10, Spark,etc.
b. Drastic decrease in sales
c. Just 33028 units sold in 2008-2010
d. Withdrawn from 13 cities including metros
e. Repositioned to Alto 800
Maggie:

Introduction Launched in five Rs. 2.5 per Only to selected “Easy to
flavours initially. 100 gm retail stores, cook ;
These were Masala, (100 % distributors and good to eat
Chicken, Sweet margin) kirana stores “
&sour,
Capsicum,lasagne
Growth No Changes in Prices Campaigning in “Mummy

product. Tried were kept school , tied bhook lagi
changing taste by normal with Chordia hai bas do
launching Maggi foods (pune) minute
Macroni in 1997, but Rs. 10 for and Indian Maggi”
reverted the changes 100 gm by foods
soon 1997 fermentation TV
(Chennai) programs
and
heavily
advertised
Maturity Introduced wide Prices Extensive “Taste

variety of flavours were distribution, bhi,
like vegetable atta affordable, Health
noodles, Chicken But Maintained bhi”
noodles, magi cuppa reduced good relation
mania the with channel
quantity partners
Rs. 10 for
70 gm
Decline Found presence of Still Low Reduced Come

Lead in the Maggie distribution back
which lead to loss of campaign
trust among
customers
PRODUCT MIX:
PRODUCT LINE EXTENSION
Product mix : Summation of Product lines
Extension : Horizontal & Vertical
Horizontal Extension : Product line extension addition : Brookbond(Tea) to Bru(coffee)
Vertical Extension :red label , taj mahal, width of products
Depth : No. of SKU’s in each category
Length of product line = Width of product line * Depth of product line
CONSUMER BUYING BEHAVIOUR:

• Recognition of needs & Wants ( Internal , External Stimuli)
• Information Search ( Personal, Public, Experimental trials, Commercial)
• Evaluation of choices ( Benefit, quality, features, price, history, services, etc)
• Purchase decision( Attitude of others, consumer perceived risk)
• Purchase evaluation ( Post purchase satisfaction, Post purchase action, Post purchase use and
disposal)
MARKET NICHER:
1. End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a
2. Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production
3. Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts and
5. Specific customer specialist: Weber carburettor is a company which provides carburettors to only high
MARKET CHALLENGER
1. Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna”
for the rural people and outshine the other coloured TV players who had a less focus on these areas.
outshine the other.
MARKET LEADER
Cocoa- cola:
communication.
MARKET FOLLOWER
1. Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from
Name- Nandini kedia
Roll no- 88
MARKETING APPLICATION AND STRATEGIES
1) Marketing vs Sales-:
Marketing is getting the company produce what the consumer wants.
Sales is getting the company produce what the consumer wants
2)Consumer Vs Customer -:
Consumer is the end user of the product
Customer is the buyer of the product
Most of the time the focus is on end consumer except in the case of Infants where the focus in on customer
Example:
A buys Frooti from the market. He is the customer
A’s daughter B consumers the frooti she is the consumer
3) New product development -:
Examples :
1) Paanwala space problem. Shops are very small. Frooti was manufactured in triangle bottles so that
it could be hung in rows.
2) Wireless head phones, air pots. Based on durability, comfort and usage of end user
• Only thing that impacts the buying decision directly
• Taking a range for a given product.
• Testing whether it is ceiling or floor penetration
• Objective whether mass or premium.
• Value based (higher margin) volume based (lower margin)
1) Skimming strategy – Chocolates: Ferrero rochers, kinder joy
2) Penetration strategy-Jio initially free then min pack of 299,399 rupee
3)Bundled pricing-
• Same product buy 1 get 1 free( kwality walls icecream)
• Same company 2 products (colgate toothpaste+ colgate)
• 2 different company (tata tea+ Kurkure)
4)Search pricing – based on demand and supply
Example : Ola, uber ,PVR tickets high price during peak hours
5)Segmentation pricing- hamam- low, lux- medium, dove- high, mysore sandal – super high
6)Geographical pricing- Nandi milk- karnatak 56 outside 60
7) freemium – partly free partly premium. Eg hotstar
5)Promotion and Insights
Every campign/ Promotion is based on insights
Examples discussed :
1) Liril- insight escaping
2) Idea-insight- National brand( honey bunny ad)
3) Airtel- insight- data usage- harr ek friend zaruri hota hai! , sharing hai toh caring hai
4) Coco cola- insight- Thanda matlab Coco cola

5) ICICI bank- insight- bande ache hai! Celebrate mens
6) Distributors
The MRP is Rs. 191. The company first sells it to the distributor, who at a margin of about 8% sells it to
the wholesaler who then with a margin of about 10% sells it to the retailer. Finally the retailer sells it to the
customer at a margin of about 12%. So, the prices in rupees of the different elements of the supply chain
are as follows:
Consumer Rs 191
Particulars Rs
COGS 278000
Transport 900
Rent 2000
Salary 800
Other expenses 100
Profit 20800
7) SEGMENTATION, TARGETING POSITIONING & DIFFERNTIATION-

Example- Colgate
Segmentation
Demographics Adults,
Geographic Rural and Urban areas
Psychological & Behavioural 1 toothpaste complete oral care solution
Target- segment of people with variety heath problems
Positioning-
1.high quality product with premium pricing
2.using technology pro-argin
3.colgate sensitive pro positioned better in solving problem
Differentiation-
Clinically proven
Natural whiteness
Synonymous- oral care
8) BCG MATRIX
• STAR:

• QUESTION MARK:
- Tata Communication (7 % Market share , at 7th position)
- Tata Sky
• CASH COW :
- Tata Power
- Tata Tea
- Tata Salt
• DOG:
- Passenger car vehicles ( 10% market share, where the market leader is Maruti with with market
share of 45%)
- Tata real estate
9) Ansoff matrix
Market penetration- existing user : existing product
Sales promotion technique Uber Go
Product Development- existing user: new product
UberX, XL, pool, Go, Auto
Market development- new user: existing product
San Francisco 2009 Today operating in 760 cities
Diversification- new user: new product
Uber eats
10) Porters Five Force
Maggie’s Example
• Competitive Rivalry – High :
- Facing Competition from many other numerous brands like Knorr, Sunfeasts
- Market share had been declined due to ban which benefited other competitors
• Threat of new Entrant – High :
• Bargaining power of supplier – Low :
• Bargaining power of Buyers – High :

- Buyers can switch from one brand to another in no time, Hence switching cost for buyers is low
which is a threat for Maggie
• Threats of Substitute – High :
11) Product Life Cycle
INTRODUCTION GROWTH MATURITY DECLINE
Sales Low High Peak down
Profit Negative High Peak Starts decreasing
Cost per unit High Decreasing lowest high
competition Very few Starts coming high exiting
product Awareness, test production, basic product Product modified, distribution, product
differentiation, market share Brand loyalty, retain customer, differentiation Market expansion, non
profitable product taken out
Price Penetration/skimming Competitive pricing Low price due to increase competition Price low
distribution Selective distribution outlet
Support from retailers Extensive distribution Extensive role of retailors
Promotion Sales promotion, education about product Less promotion
Make maximum of increase in demand Changes in sales promotion
Recall advertisement, direct sales

Maggie Product Price Place Promotion
Introduction - Product launched keeping in mind the working women and children
- No competition Low pricing strategy for making product affordable - Producer->

Distributor -> Retailer -> Consumer - “ Bas 2 Minutes “ Instant noodles
- Promotion focused on awareness and information
Growth No Changes in product
Tried changing masala formula in 1997, but reverted the changes soon Rapidly rising sales
Rising profits
Prices were kept normal Campaigning in school “ Good to eat fast to cook “
Maturity Introduced wide variety of flavours like atta noodles, Chicken noodles, cuppa maggie
Sales at peak
Profits are high
Cost per customer low
Prices were affordable, But reduced the quantity Intensive distribution,
Maintained good relation with channel partners “ taste bhi, Health bhi “
Decline Found presence of Lead in the Maggie which lead to loss of trust among customers
Still Low Reduced distribution Comeback campaign
12) Consumer Behaviour

5 Roles By A buyer
1. Initiator
2. Influencer
3. Decidors
4. Buyers
5. Users
13) Product line
FMCG product width 7 length 30
Cigarettes & cigar- insignia, india kings, wills navy cut, classic regular, gold flake, navy cut, virstol
Food – aashirvad( staple, ghee,spices,ready meals, instant mixes), sun feast(biscuits, yumfills), bingo,
kitchen of india, yippee,
Personal care- Essenza Di wills, vivel, fiama di wills, engage,superia,vivel cell renew, savlon, shower to
shower
Education & stationary- classmate, paper craft
Lifestyle retailing- wills lifestyle( wills classic, wills sport,clublife,signature), john players
Agarbatti- Mangal deep
Safety matches- Aim, ikno
HOSPITALITY
Hotels- luxury collection(super deluxe & premium), welcome hotels( 5 star hospitality), fortune hotels( mid
market to upscale property),welcome heritage ( includes a chain of palaces, fort & resorts)
Branded accommodation- ITC one, towers,eva,executive club
Restaurants- Bukhara, peshawari, dumb pukht, dakshin
Paperboat & speciality papers

Coated board packaging
Graphic boats
Fine paper
The printing paper
Agri business
E choupal
Agri business ltd
Agri commoditties & rural service
IT
ITC infotech( industry, service line)
14) Marketing Strategies
Market Challenger
• Frontal attack :
• Flank attack : Royal enfield vs Hero honda
• Encirclement Attack: It attempts to capture wide slice of territory. Hindu vs Times of India
• Bypass attack: Pepsi used bypass atcack by rolling out Aquafina bottled water nationally before
coke did it(Dasani). Purchasing orange juice giant Tropicana before coke acquired Minute Maid.
• Guerrila attack : Dunkin donuts
Market leader
1. Position Defence : occupying most desirable position in customers mind . P&G owns key functional
benefits in customer’s minds. Crest toothpaste for cavity fight. Papmpers diapers for dryness
2. Flank Defence :
3. Preemptive defence :
4. Counteroffensive defence: Apple and Samsung controversy over design copying

5. Mobile Defence : Leader stretches their domain over new terretories by market broadening and market
diversification. ITC being Tobacco is the main product line it has diversified itself in other product lines
too.
Market nicher
a long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells school

3. Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts
Market follower
1)Adapter : Good Day Butter cookies - Britania and Parle, Dish TV and Tata Sky
2)Imitator: Sabyasachi Lehengas getting in local market
3)Cloner: Watches made from Rado, or bags from Gucci , spelled as RADA or Gucca.
4)Counterfeit : Pirated CD Disks

Name: Sushant Harite
Roll No : 80
Batch : PGDM II
Customer and Consumer
● Customer
● Customer is the one who buys your product/service. In simple terms, s/he is the purchaser of the
product/service, s/he pays for getting the product. A customer may or may not use it for self.
● E.g. A person buying Amul milk is a customer; a retailer buying Amul milk to re-sale it is a customer;
a company buying Amul milk to serve its employees is a customer.
● Consumer
● Consumer is the one who uses/consumes a product/service. It is not necessary that a consumer should
purchase the product/service. If any other person buys the product which is consumed by other person,
then the other person is the consumer and the buyer is the customer.
● E.g. A person drinking Amul milk purchased by some other person is a consumer.
● A Customer can be a consumer if he purchases the product/service and self-consumes it.
● Marketers use the information about who is customer and who is consumer in devising the marketing
mix of product and services. They will target both the groups to better market their products and services.
● Taking a common example of a mother and child: In the case of mother and child relationship, the
customer (who buys product) is the mother and consumer (who consumes the product) is the child.
● E.g. Health Food Drinks or malted food drinks category products such as Complan (Zydus Wellness),
Bournvita (Mondelez International) etc target the mother in their communications to convert it into a
purchase. As a mother is very much emotionally attached to the health and well-being of the child, these
malted food drinks promote the extra nutrients which it provides which will help the child grow in a
balanced way. Most of the advertisement revolves around the customer- Mother.
● There is the other way around of product targeting as well: E.g. Kinder Joy is a well-known chocolate
for children. In this case, the consumer (child) is targeted in all the Ads and communication as s/he is a
very good influencer in making the customer make the purchase.

INDULEKHA – HAIR OIL
● Idea Generation: The brand started with the search for ideas, through a structured process. Ideas at
this stage:
Gel based Oil: Pre-bath Tonic: High quality Anti-dandruff Perfumed Oil:
Mustard oil: hair oil:
The idea behind The idea behind The idea
this was to this was to Mustard oil enjoys Dandruff is a behind this was
launch a launch a tonic a strong goodwill major issue. to launch an oil
product which cum oil which in the traditional Hence, the with a pleasant
helped in could provide families. Since the brand odour and
solving dual regular focus of Indulekha considered particularly
aspects: nourishments was on rural and launching an used for hair
with semi-urban areas, anti-dandruff massage as a
1) Grooming conditioning it considered oil. stress reliever.
launching a
2)Nourishment product which
at the same time focused on
nourishment
Ø Idea Screening: Indulekha did a thorough market research before finally boiling to an idea
STEP 1: It broke down the Hair oil market into two segments: Sticky Hair oil and Non-Sticky hair oil.
STEP 2: The brand went onto do a thorough research on the parameter: Was there a felt need for the new
product?
The brand did a research on the non-sticky and sticky segments, and concluded that non-sticky segment
of the hair oil has a better chance of future growth. This conclusion was based on the following consumer
insights:
· As per the research, the rural and semi-urban use the sticky hair oil as the pre-bath oil and trust it
enough due to the ingredients involved in it. In Kerala, people were facing hair fall issues. There was
a need amongst the people for an oil which could prevent massive hair fall. This is where the idea of
Indulekha oil was generated which was 100% Ayurvedic.
· As per a market research in the urban area, it was analyzed that the urban consumer looked for very
traditional benefits when it comes to applying the kind of oil.
· The non-sticky oil had a strong brand loyalty in the age group of 35+ years. Hence, later the brand
shifted its focus to this segment of the society.
· The usage of oil was skewed to the female section as male generally avoided applying oil.
Hence, Indulekha rejected the last 4 ideas and went ahead with the first idea: Gel based Oil
Ø Concept Development and Testing: For concept testing, Indulekha prepared a questionnaire which was
made to fill by the hair oil users across the specified geographical areas. The respondents of the
questionnaire were teenage girls, teachers, mothers of the teenage girls. The questionnaire was floated
to a total of 1800 people. The ideas which passed through the screening stage were later developed
into concepts: Semi-gel oil with proper ingredients. A gel oil is known to have good grooming
properties as well as nourishing properties. A gel oil mixed with some natural ingredients such as
lemon, egg etc. can be used regularly. The oil also served the purpose to remove microbes, which
actually cause dandruff. The oil was used to provide clean hair without much hair fall.
Ø Business Analysis: Analysis of Investment, Profitability and Demand. Historical data of existing
competing brands was evaluated. Company prepared sales, cost, and profit projections to determine
whether they satisfy its objectives. Since they did, the concept moved to the development stage.
Ø Product Development: With limited production, Product development and testing was carried. out.
Ø Market Analysis:
Target Market: The target market of Indulekha was urban and semi-urban areas in the 18+ category age
group. These belonged to the lower middle class and border line category.
Positioning: The non-sticky gel-based oil for hair conscious, rational, urban persons provides them a
damage free solution to control and prevent the microbes and provides traditional nourishing properties
of oil.
They marketed the brand as a 100% ayurvedic and medicinal brand rather than a cosmetic product and
stressed on its main content. Newspaper ads and consecutive print ads built a positive vibe among the
trade channels.
Ø Commercialization: At the initial stage customer communication has captured a sentence as -

“Clean your hands with soap after applying Indulekha oil otherwise, hair will grow on your palms”.
Indulekha commercials were aired on all media channels with high frequency. Many events with telecast
value have been sponsored by the brand through leading general entertainment channels. After successful
market penetration in Kerala, the management decided to go beyond Kerala, initially to other southern
states and then expanded across India
The bottle with a patented comb shaped cap has been popular since its launch in 2014, with sales rising at
a 30% pace since then. The company had drawn up plans for expansion to other Indian cities when it
caught HUL’s attention, said a person associated with the brand.
Pricing strategies
○ Skimming: Nutella; Premium chocolates like Bournville
○ Penetration: IKEA priced products in India below the equivalent prices in other IKEA markets
○ EDLP (Everyday Low Pricing Strategy): Walmart is the king of EDLP strategy, it promises
everyday low prices on major brands. A combination of rich product assortment and making
it available at everyday low price (EDLP) is DMart’s winning formula in value retailing.
○ Discount Pricing: Flipkart, Amazon, Swiggy, Zomato

○ Psychological Pricing: Big Bazaar, Pizza Hut
○ Loss Leadership Pricing: Gold’s Gym, Costco
○ Price Bundling: combining several products or services into a single comprehensive package
for an all-inclusive reduced price. McDonald’s, Amazon Prime
○ Surge Pricing: Ola cabs, Uber, night shows at cinema theatres
○ Product line pricing: Tata Manza
○ Competitive pricing: Reliance Jio
○ Segmented pricing: HUL has different prices for its variety of soaps (from Hamam to Lux to
Dove)
○ Freemium: Intially free (trial period), then start charging. E.g.- Voot, Canva.
○ Geographical pricing: Nandini Milk sold at Rs. 56 in South India and Rs. 60 in other states.
Distribution
Ø Intensive Distribution: basic idea behind is to saturate every suitable retail outlet with the brand. FMCG
And Pharmaceutical products
Ø Exclusive Distribution: when producer wants a close watch and control on the distribution of his
products. It is an extreme modification of selective distribution. It creates an aura of prestige and
exclusivity Rolex, BMW, Apple
Ø Selective Distribution: Few selected outlets will be permitted to keep the product. There will be multiple
outlets but not all the outlets in the market. It reduces the distribution cost. Selected store must meet
the company’s standard while appealing to target market. E.g. Raymond, Titan
Ø Contemporary channels of Distribution:

§ IRCTC: Water vending machines at 450 railway stations. 300 ml bottle at Rs. 1/-
§ Mi Express: Buy phones and accessories with touch of a button. First store in Manyata Tech Park,
Bengaluru.
§ RailYatri: food directly delivered to passengers in train.
§ WalMart: Cross docking
Promotions and Insights

Ø Liril ad from 1990s: Lowe Lintas conceptualized the waterfall ad. To show the woman in a household
who craved for freedom and the only time she had complete time for herself was while having a bath.
Ø Idea Honey Bunny ad: to show that they are a national brand and not just restricted to Maharashtra
circle.
Ø Airtel: first came up with “Har ek friend zaroori hota hai” – as a market leader, they realised that focus
should be on data rather than calls. targeted the youth and leveraged the growing social media trend.
Once the segment was established, it then came with “Jo Tera Hai who mera hai” campaign which
continued the previous campaign and showed the increased on social media and sharing content.
Ø ICICI bank: ‘Bande achhe hai” – targeting the men’s segment by talking about their selfless character.
Segmentation, Targeting, Positioning, Differentiation
1. Segmentation: Bases of Market Segmentation

Geographic: Dainik Bhaskar- Publish different newspapers in different language for different states
Demographic: Titan Watches for its 'Fastrack' watches chose the segment of youth between the age of
18—35 years including working adults and the postgraduate students of both metros and mini metros.
Psychographic: Raymond`s (Suiting - for the elite class); ZARA - The Zara customer is clearly very
fashion conscious and loves to keep up with the latest trends.
Value: Maruti NEXA - The buyers of premium cars were not comfortable with the Maruti showrooms;
they wanted not only great cars but also a fine buying experience. Thus, Nexa was born; the company`s
exclusive line of showrooms that sell its premium car portfolio. The product was already there & they
were also distributed. But it did not reach and occupy the mind space of the targeted customer. The
new showroom by itself was a product offer carrying certain unique values that mattered to the modern
buyers.
Niche Marketing: Sensodyne—a 'niche' for GlaxoSmithKline: For example, the segment that has
Sensitive teeth and is going for a special toothpaste is a 'niche' and what GSK does by offering the
Sensodyne toothpaste to them is 'niche marketing'. They offer the product to the niche customers and
are able to have a focused marketing programme targeted at this segment. Their communication too
accordingly is unique
2. Targeting:
Undifferentiated: The company designs a product and a marketing program that will appeal to the
largest number of buyers. E.g. Entry of Reliance Jio in Indian telecommunication.
Differentiated: HUL markets different laundry detergents brands namely Wheel, Rin, Surf Excel,
Comfort, which compete with each other on supermarket shelves. Then HUL further segments each
detergent brand to serve even narrower niches.
Concentrated: instead of going after a small share of a large market, a firm goes after a large share of
one or a few smaller segments or niches. Southwest Airlines began by serving intrastate, no-frills
commuters in Texas but is now one of the nation's largest airlines.
3. Positioning:
Position and own the category benefit: Volvo: Safety; Walt Disney Company: Magic
Position how the company does business: Burger King: Have it your way; Walmart: Always the lowest
price
Position the product and the consumer: Budweiser: For all you do, this Bud’s for you; Pepsi
Generation
Position against the competition: Seven-Up: The Un-cola; Apple: Think different
Vicks: With unique shape and the long-lasting positioning "Vicks ki goli lo Khich Khich door karo"
Vicks cough drops were careful in not messing up "Kitch Kitch". This has ensured that the brand
enjoys excellent recall.
Maggi noodles: target market was the in-home segment of the very substantial snack category. This
positioning decision automatically determined the competition which included all snack products in
general. These would range from ready-to-eat snacks- biscuits, wafers and peanuts- to ready prepared
snacks such as samosas. All were bought-out items.
However, such snacks were positioned at some distance from maggi noodles; they were not its direct
competition was occupied by snacks prepared at home, such as papad, fried peanuts, sandwiches and
pakora. Maggie noodles, as market result show, found a vacant, strong position and “sat on it” as the
‘the good to eat, fast to cook’ anytime snack.
4. Differentiation:
Functional features: Gilette wages its marketing battle mainly on the functionality of its products. It
keeps adding value to all its products through new inputs. It ensures that its razor blades are as
technologically advanced as possible.
Product related: Red Label – It claimed a speciality on its unique mix of five Ayurvedic ingredients.
These ingredients are derived from medicinal plants and are traditionally used to improve immunity
and build resistance. HUL has successfully projected Red Label as a health drink, differentiating it
from other tea brands.
Design: IKEA – it is known for its functional design. Its ready to assemble furniture, kitchen
appliances & home accessories are designed to ideally serve the function at the most affordable price
for the buyer
Customer Experience: Taj Hotel has identified touch points in customer service from the moment a
customer enters into their property till the time they leave from there where there is a face to face
interaction. The hotel chain has ensured that in each of these points there is a clear service difference.
Product quality: Bata differentiates itself as a brand that offers comfortable footwear & stylish
accessories for the entire family at an affordable price.
Customer service: Dell launched a services-and-support programme ProSupport. It provides 24x7x365
telephone and online support for its business customers. It offers customers more options to adapt
services to fit their needs. Instead of a one-size-fits-all service approach, Dell allows various options.
Packaging: Sunfeast brand of biscuits and cookies has been generally using simple poly-packing. But
Sunfeast Dark Fantasy offered as a premium biscuit, comes in a dark purple silly pack that reflects the
dark fantasy the pack is supposed to be offering.
Product Life Cycle
1. Introduction Stage (1983 -1986): Maruti 800 first Launched in Indian Market on 14th December
1983. 1st car was presented to Lord Venketeswara of Tirumala Temple. Prime Minister Mrs. Indira
Gandhi handed over the keys of India’s first Maruti 800 to Mr. Harpal Singh, who won the lucky draw
to be India’s first Maruti 800 owner. It was the cheapest car in Indian market at that time and the
Waiting list often took upto 3 years to clear.
2. Growth Stage (1987 – 1996): Maruti 800 comes up with new features like, AC version and music
system in the car. First export began in 1987. As Expectations from people matched product promised,
Sales increased by 852 units to 20,269 units and reached upto 31,314 units. Sales soared from about
63,763 units to about 1,89,061 units in 1996. Increase in Profits. Strategies adopted – Customer care
has become key element for Maruti; Increased Maruti service station every 25 KMs on a highway; To
increase market share Maruti launched new car model Maruti 800 CB72.
3. Maturity Stage (1997 – 2002): In 1997 Maruti Introduced a new car with Jelly Bean Shape.
However, it was not so successful in the market. Launched revamped version of Maruti 800 EX, with
new engine, shock absorber, coil spring suspension, but this model lost their sales gradually. Sales
Touched 200, 000 market in 1999. Entry of competitors like General Motors, Ford, Tata. In 2002,
MARUTI launched ‘ALTO’, with bigger stylish version of the Maruti 800. Introduced LPG & CNG
variables, called Maruti 800 Duo with new face lifts like newer grille and clear lens head lamps
4. Decline Stage (2002 – 2014): Due to heavy competition from competitors like Hyundai i10 and
Chevrolet Spark, sales of Maruti 800 drastically reduced. The sales went down from 1,51,976 units in
the year 2000 to about 69,553 in 2007. In 2008-2009 it experienced a drastic reduction in sales. Major
competitor Tata Motors launched Tata Nano, which was smaller and yet offered more space than the
Maruti 800. Sales continued in semi urban and rural areas. In 2012 Maruti introduced ALTO 800 in the
place of Maruti 800.
BCG Matrix
Porter's 5 forces
1. Threat of substitutes: highest in Auto industry, with Ola Cabs and Uber. Building a core proposition
is a must.
2. Threat of new entrants: Uber has diversified into Uber Eats. Also enjoys economies of scale. Hence
it faces comparatively lower threat. Pre-emptive moves are important. Also Pringles to counter
‘unhealthy’ tag came up with “not fired” campaign.
3. Bargaining power of Suppliers Bargaining power of Suppliers: Amul does forward integration to
reduced threat. Important to not put all eggs in one basket. backward integration can also be done.
4. Bargaining power of Buyers: Can be reduced by more variety of products and better pricing (E.g.
HUL)
5. Threat of Rivalry: High Exit barriers and low entry barriers mean more competition (e.g. Telecom
industry). Also in the aviation industry, where Air India is finding it difficult to exit.

Consumer Buying Behaviour refers to the decision processes and acts of the ultimate consumer. A firm needs
to analyze buying behavior for: Buyers reactions to a firms marketing strategy has a great impact on the
firm’s success; The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies
(gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy;
Marketers can better predict how consumers will respond to marketing strategies.
The Six Stages of the Consumer Buying Decision Process are:
1. Problem Recognition (awareness of need): difference between the desired state and the actual
condition. Deficit in assortment of products. e.g.:Hunger--Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know you were deficient? For
instance, see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair
of shoes.
2. Information search: Internal search, memory. External search, if you need more information. Friends
and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is: Chinese food (Mainland China) or Indian food (Delhi
Durbar) or burgers (Burger King) etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does
not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy,
Indian would get highest rank etc. If not satisfied with your choice then return to the search phase. Can
you think of another restaurant? Look in the yellow pages etc. Information from different sources may
be treated differently. Marketers try to influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase
etc.
5. Purchase--May differ from decision, time lapse between decision and actual purchase, product
availability etc.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you
made the right decision? This can be reduced by warranties, after sales communication etc.
After eating an Indian meal, may think that you actually really wanted a Chinese meal instead.
The four types of consumer buying behavior are:
1. Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost

items; need very little search and decision effort; purchased almost automatically. Examples include
soft drinks, snack foods, milk etc.
2. Limited Decision Making--buying product occasionally. When you need to obtain information about
unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for
information gathering. Examples include Clothes--know product class but not the brand.
3. Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently

bought products. High degree of economic/performance/psychological risk. Examples include cars,
homes, computers, education. Spend alot of time seeking information and deciding. Information from
the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying
process.
4. Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from
one category to the next. For example: Going out for dinner for one person may be extensive decision making
(for someone that does not go out often at all), but limited decision making for someone else. The reason for
the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the
extent of the decision making.
PRODUCT WIDTH: how many different product lines the company carries
PRODUCT DEPTH: the number of product items and variables [like size, packaging, colors etc]
offered in each product line. (The total SKUs of the company)
PRODUCT LENGTH: the total number of items in the mix. It’s equal to Width x Depth, of a product
line
PRODUCT CONSISTENCY: the degree of similarity between product lines w.r.t. end use, technology,
production technique and distribution channels. This consistency is based on firm’s long-term objectives, its
competitive position in the industry and resource position
Nestle: 5 Main Product lines. Total Product Mix = 207
Product Consistency: As Nestle India’s product width focuses only on food and beverage items, their product
mix is quite consistent. Nestle has been in the food and beverages industry from its inception till date without
diversifying their portfolio too much.
Examples of inconsistent product mix:

Ø Larsen and Toubro: Diversified into cement and medical diagnostics.
Ø ITC Ltd: Diversified into hotels, cigarettes, FMCG, exports (sea food), financial services, agro-tech
and retail.
Ansoff Matrix
The Ansoff Matrix (also known as the Product/Market Expansion Grid) allows managers to plan & analyze
potential growth strategies, and compare them to the risk associated with each one.
Market Leaders, Challengers, Followers, Nichers
Ø Market Leaders: firm can use one or a combination of three strategies to retain its leadership:
1. Expand the total market:

a) Add new users: Maruti Udyog started True Value car division - used cars certified by
Maruti engineers - to expand their market in the rural as well as urban markets;
b) More usage per occasion/time: Glad products’ “Press n Seal” promoted as having 1000
cool uses, besides lining the paint tray;
c) More frequent Users: HUL’s Pepsodent 12-hours germ protection campaign;
d) Discover New uses: Reckitt Benckiser’s Dettol can be used in bathing water as well as
for mopping the floor. Pidilite’s M-seal: Ads showing that purpose ranges from roof
water leak to cockroaches to toilet flush leakage.
2. Defending the Market share:
a) Position defence: allocating maximum resources into the current successful brands.
Samsung consolidated every segment by launching phones at different price ranges -
Guru (low end), Galaxy (Mid-range) and Note (high end); P&G’s Gilette: Venus for
women and Mach 3 for men; Godrej’s Goodknight came up with Fast cards, in addition
to coils, for rural markets where electricity was a problem.
b) Flanking defense: serves as a defensive corner either to protect a weak front or to

establish an invasion base for counterattack. Nestle’s Maggi came up with Atta noodles
to overcome maida noodles (‘unhealthy’ tag). Campaign was “Taste bhi, Health bhi”
(where they strategically placed the word “taste” first and then “health” to signify that
taste has not been compromised)
c) Pre-emptive defence: launching of an offence against an enemy before it starts an

offence. Titan launched more brands and sub-brands to corner the market share of HMT
watches in the early 1990s. ITC ventured into hotels and retail, even though core
business is cigarettes, so as to cover for any future ban on cigarettes.
d) Counter offensive defence: identifying a weakness in an attacker and aggressively

going after that market niche so as to cause the competitor to pull back its efforts to
defend its own territory. ‘The Hindu’ launching counteroffensive ads (by giving
message that they provide the proper & relevant news to users) against TOI in South
India. Amul’s frozen dessert charges against HUL’s Kwality Walls ice-cream. Also,
when Ceat tyres attacked TVS Srichakra in Tamil Nadu markets, TVS decided to
expand its coverage to Ceat tyre’s hub in the north and west of India through innovative
e) Mobile defence: leader broadening and expanding its territories to new market areas
by diversifying. Reliance launched Jio (a ‘Star’ service, which it would want to turn
into a ‘Cash Cow’) though its core is petrochemicals (already a ‘Cash Cow’).
Contraction defence: involves retrenching into areas of strength and is often used in later stages of a product
life cycle or when the firm has been under considerable attack. Usually used in times of recession. Reliance
looking to sell its TV channels (Viacom 18) to Sony – selling a ‘Star’ to focus on Cash cows. Unilever
displaying each element of its core segments (industry orientation) in its logo.
3. Expanding the market share strategy: leaders can improve their profitability by increasing their
market share – through Product innovation (Parle’s Frooti coming in triangular packets) or promotional
and/or distribution innovation (OnePlus initially partnered with Amazon as a sales platform).
Market Challengers: challengers are called as tailing firms. They can attack the leader and other
competitors in an aggressive bid for market share which “rock the boat”.
1. Frontal attack: Target strengths of the leader. McDonalds targeting Café Coffee Day with its own
coffee outlet McCafe.
2. Flank attack: Target weaknesses of the leader. Vini Cosmetics’ Fogg targeted weaknesses of HUL’s
Axe deodorant of being only gas and not being last lasting.
3. Encirclement attack: Target both strengths and weaknesses of the leader. E-commerce industry:
Amazon challenging by offering lower prices (Strength) as well as wider distribution (weakness)
4. Bypass attack: bypassing (i.e., ignoring or avoiding) the leader and attacking easier markets to
broaden one’s resource base. Pepsi used the bypass attack against Coke by launching the Aquafina mineral
water brand, very much before the Coke’s Dasani brand.
5. Guerilla attack: making small and intermittent (sudden and irregular) attacks on enemy’s different
territories. Dunkin’ Donuts coffee – flavour radio in South Korea took competitors by surprise.
Market Followers-
1. Counterfeiter: counterfeiter duplicates the leader’s product as well as package and sells it in the
market through disrepute distributors. Products are marketed secretly to avoid legal complications. Shoes
from Reebok and Adidas as well as numerous other products in the market which are counterfeited
2. Cloner: product and packaging may be identical as that of leader, but brand name is slightly different,
such as “Colgete” or “Colege” instead of “Colgate” and “Coka-Cola” instead of “Coca-cola”.
3. Imitator: same characteristics, but at a better price. Tata sky was imitated by Videocon, Airtel DTH
etc.
4. Adapter: Honda Brio adapted from Maruti Alto/Zen.
Market Nichers- aLL stores: apparel for plus-sized people

Nitish Sehgal | Roll No. 98 | Marketing Assignment
Marketing Assignment
-Nitish Sehgal (98)
STPD
Godrej Cinthol
Segmentation: Youngsters and Premium segment, psychology Targeting: Urban Youth
Positioning: for rough, tough and resilient people. (Cinthol stands for, ‘freshness’, ‘alive’,
‘confidence’, ‘masculine’)
Differentiation: it’s clean and bold and aesthetic, and not like your normal soap brands that have
swirls and curves on them. They tried to become more urban with their ad campaign (Alive is awesome).
Cinthol took a mundane product such as soap and made people see it in a new light that evokes thoughts of
adventure and coolness. Further, Cinthol gave a unified message across all its social media channels which
worked well for Cinthol.
Cinthol made the best use of their social media accounts to promote the campaign, especially their
Facebook page. Its fan base grew by 84.10% during the time period analysed which is more than thrice the
Personal Care sector average of 27%. At the same time its twitter account saw 277% increase in followers.
Cinthol mostly posted about Awesome Getaways, which featured amazing and adventurous destinations
around the world. The Awesome tag is in line with its brand messaging
Ansoff Matrix
Uber
Market penetration: Uber engages in market penetration via application of various sales promotions
techniques. These include distributing promo codes to allow users to have a discount for their next ride and
“Uber VIP” loyalty program that rewards riders with special access to highest-rated drivers. Moreover,
users can earn free rides by inviting their friends to sign up and ride with Uber.
Product development: The global transportation technology company consistently increases its service
range. Currently, its extensive range of services include Uber X, XI, Pool, GO, AUTO, Access, MOTO,
Premium and Rush.
Market development: Uber currently operates in more than 760 cities worldwide showing how Uber has
developed in various global markets based on their preferences – example – In Dubai, Uber comes in the
form of high end luxury cars under the category of Uber SELECT and Uber VIP, while in an Indian Market
the maximum that’s available is an Uber Black.
Diversification: Initially launched only as a taxi company, the ride-hailing giant has entered the takeaway
food delivery segment with Uber Eats.
A product line extension is when a company creates a new product in the same product line of an existing
brand.
BCG Matrix
Amul
Amul brand is a prominent and popular name in the dairy industry in India. It produces milk, butter, and
other dairy-related products and successfully caters to the Indian population. The BCG matrix for Amul is
as follows:
Stars: The products which are considered as Stars of Amul are Amul Ice cream and Amul Ghee. These
two products have a high market share and have adequate possibilities to grow in the near future. Amul
Ghee has also been a Star for the company as the brand has been able to acquire a 30% hike in its sales
while the market share clinged by the product is around 18% along with a yearly turnover of more than Rs
1,700 Crores.
Question Mark: Amul Lassi is diagnosed as a Question Mark as their capability as a major derivation of
profitability remains quite bleak. Amul lassi has been brought about in the market with the agenda to
magnify the market share and give a tough competition with the other beverages available in the market.
The healthy milk from Amul possesses a huge potential to swell in the future considering the expansion of
interest and demand for healthy products, refreshments, and beverages.
Cash Cows: There are three products under the umbrella of Amul that come under the Cash Cow category
and they are Amul Milk, Amul Butter, and Amul Cheese. The market share of these products is not likely
to undergo colossal gains but their current spot makes them a high revenue contributor.
Dogs: Amul has two products that have not been able to generate sales and revenues as per the estimation.
One of the noteworthy examples in this regard is Amul Chocolates and Amul Pizza. The competitors make
it tough to amplify the market shares to a notable degree which can turn this product to become an
outstanding source of sustainable revenues. However, if the sales figures do not proceed towards
betterment, a probable measure would be to take the path of divestment of the above-mentioned brands.
Consumer Behaviour
Complex buying behaviour: A behaviour encountered when a customer is buying an expensive and
infrequently bought product. Level of involvement in buying decision is high & a lot of research is
involved
Example: Buying a house – identifying the location, price, amenities and other complex decisions
Dissonance-reducing buying behaviour: The consumer is highly involved in the purchase process but has
difficulties determining the differences between brands.
Example: Buying an LED TV – how to differentiate between a Sony, Samsung or an MI TV?
Habitual buying behaviour: Habitual purchases are characterized by the fact that the consumer has very
little involvement in the product or brand category.
Example – Buying a consumable like Bread which someone is habitual to – A regular loaf bought from a
baker or any regular bread brand which is available always on the shelf.
Variety seeking behaviour: In this situation, a consumer purchases a different product not because they
weren’t satisfied with the previous one, but because they seek variety.
Example – Purchase of Fragrances – Choosing as per the occasion
Potter’s 5 Forces
Potter’s five forces is a framework for analysing a company’s competitive environment. Five forces can be
used to guide business strategy to increase competitive advantage.
Mondelez Dairy Milk
Supply of Coca: high
Sugar Industry: large number of players
Switching Cost: low
Bargaining power of buyer: high
Large volume of buyers
Low switching cost
Threat of potential new entrant: low
Knowledge of Indian consumer
Established brand
Strong distribution channel

Threat of substitute of products: moderates
Cookies
Sweets
Cakes and pastries
Product Life Cycle
Mondelez Dairy Milk
Introduction: In the 1980s, it was positioned as ‘the perfect expression of love’, captured in memorable
copy: ‘sometimes Cadbury can say it better than words’. During the early1990s, Cadbury Dairy Milk
emphasised its international identity, communicating that it was the ‘real taste of chocolate’. In 1994 came
the path-breaking ‘real taste of life’ campaign.
Growth: the next stage of growth for the brand dealt with popularising consumption in a social context,
especially in more traditional settings like weddings. With the campaign ‘Khaanein waallon ko khaanein ka
bahana chahiye’ featuring Cyrus Broacha, Cadbury Dairy Milk aimed to substantially increase penetration
levels. The campaign was launched in tandem with the award winning ‘Kuchh khaas hai…’campaign and
the media strategy was to let the two co-exist towards a common vision: ‘A Cadbury in every pocket’. The
brand penetrated into smaller towns and sales volumes grew by 40%.
Maturity: The focus for a period shifted to taking the concept of “Kuch Meetha Ho Jaaye” further. The
“Pehli Tareekh Hai” campaigns talked about the importance of having Dairy Milk and celebrating on
getting your pay on pay-day.
Decline: Although Dairy Milk has been securely maintaining the maturity in the market, a few of the
variants have seen a bit of decline. Instead of drastically getting into a decline, Cadbury did a lot of product
extensions like the silk and its other variants which are a hit in every season in the Indian market.
Distribution
Coca- Cola
Coca-Cola India minimised its capital needs by meeting new manufacturing capacity needs through
external co-packers, outsourcing its distribution and meeting its in-market-refrigeration and cooling needs
by giving incentives to retailers to self-fund the same through its “Own Your Fridge Scheme.”
Today, the company has an extensive rural and urban distribution network. Coca-Cola adopts a hub and
spoke format distribution network ensuring that large loads travel longer distances and short loads travel
short distances. Coca Cola has increased its village penetration from 9 per cent in 2000 to 28 per cent and
covers approximately 175,000 villages today. Rural India accounts for more than 30 percent of Coca-
Cola’s sales volumes.
Pricing Strategy
Apple iPhone XR
To increase its market share in the price sensitive Indian market, premium phone manufacturer Apple Inc.,
had to opt for price cuts and cashback.
For the first time in its history, Apple went against the grain and decided to opt for price cuts and credit
card cashbacks for its flagship model iPhone XR. The company brought down the price (in April 2019) of
the 64 GB iPhone XR from ₹76,900 to roughly ₹59,000. Similar discounts were introduced for other
variants of the same model as well.
These price cuts (skimming strategy) resulted in making iPhone XR became best selling model overnight.
Hence the company saw a double-digit growth in sales.
But Apple still lags behind Chinese smartphone maker OnePlus which captured its highest-ever shipment
share of 43% in the June quarter and is the leader in the premium segment followed by Samsung with 22%
share. Apple has 20% share in the premium segment but a minuscule share in the overall domestic
smartphone market.
The softening of global demand seems to be driving Apple’s new approach. Potentially, India is a large
market and Apple is a desirable brand but currently too expensive for the market.
Airtel – Har Ek Friend Zaroori Hota hai
Released on the back of our country wide launch of 3G services and communication supporting that, the
new campaign targets the youth with an evergreen theme of Friendship and its relevance. Friends remain a
critical part of everyone's lives and more so for the youth. At their age, friends are actually family. And the
brand campaign captures this evolving trend among today’s youth in a fresh young ad with a powerful
youth song - 'Har Ek Friend Zaroori Hota Hai'.
The country's largest mobile operator's numerous campaigns in the past years including its around Rs 300
crore rebranding, complete with new logo and signature tune, in November 2010 — failed to match the
buzz that Vodafone's Zoozoos, pug and Idea's 'What an idea, Sirji' created.
Then came this friendship campaign in August 2011 and it brought Airtel back in the limelight. And back
of a 31% fall in the last quarter of 2010-11.
Agency: Taproot
Production house: Equinox Films
Media agency: Madison
NIRMA
Karsanbhai Patel realised that only MNCs were selling detergents in India and the country lacked an
economy brand detergent.
Sensing a huge opportunity, his anxiousness to bridge the gap increased and Karsanbhai started
experimenting with chemicals. Soon he was successful in producing a good quality detergent NIRMA at a
much cheaper cost which was an instant hit in the market.
As soon as Karsanbhai Patel discovered the magical formula; he defined the target segment to which his
detergent will cater to. He knew that the competitor brand Surf was a premium brand sold in tier 1 cities so
he focused on selling his brand in tier 2-3 cities. In order to get more customer traction, he priced his
detergent low and made it a mass brand.
Soon, people from lower middle class and middle class accepted the product and it captured the market
quickly. Where most companies followed the traditional way of top down approach i.e. expanding from
metro cities to rural towns; Nirma did the opposite and changed the whole game.
Nirma started with a low-cost detergent for low income groups, but later launched products like Nirma
Sandal soap, Nirma Beauty soap etc. for the higher income groups.
Diversifying the portfolio not only reduces the overall risk of failure of the company but also helps the
company to cater to varied segments.
“Dudh ki safedi Nirma se aaye, Rangin kapda bhi khil khil jaaye. Sabki Pasand Nirma” the same jingle has
been used for 35 years which created an emotional attachment with the consumers.
Market Leader, Challenger, Follower & Nicher

Market Leader
defence strategies.
Market follower
3. Cloning: if you get watches made from Rado, or bags of Gucci, as GUCCA, then that’s cloning.
Market Challenger
low price with the same level of the quality as that of other competitors in the market
areas.
3. Encirclement Attack: Pepsi adopted this strategy when it launched its mineral water brand
surpass each other.When the Coca-cola was the official partner of the world cup, the Pepsi counter-attacked
Market Nicher:
a long beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells school

production and target audience were initially strictly restricted to the city of Mumbai.
3. Customer size specialist: Tree of Life (Hallmark) specializes in only Jewish greeting card and gifts
and celebrates Jewish faith.
high-end cars like Porsche, Ferrari, BMW.
Marketing Assignment Anuj Arora 64
STPD Analysis (Fast Track)
Segmentation-Gender-Male, Female, Fashion Obsessed Youngsters
Targeting-18-3o years old, earlier fast track was targeted to 20 – 25 years old.
Then the company found out youth in the age group of 11 – 20 years account for 42% of watch buying in
India.
Positioning:
18 – 30 years old – How many you have?
20 – 25 years old – Cool mesh straps, wrist hugging cases, oversized displays.
Segmentation:
Variables of segmentation
• Geographic Segmentation
• Demographic Segmentation
• Psychographic Segmentation
• Behavioural Segmentation
Targeting:
• Targeting is the selection of the customers you wish to service.
• Choosing one’s target market.
• How many products to offer?
• Which products to offer in which segment?
Positioning:
• To create an image or identity in the minds of their target market for its product, brand, or
organization.
• A products position is how potential buyers see this product.
• E.g. Mercedes is positioned as luxury brand
Differentiation:
• The process of distinguishing the differences of a product or referring from others, to make it more
attractive to a particular target market.
• Source of competitive advantage
• The objective of differentiation is to develop a position the potential customers see as unique.
• Major Sources of product Differentiation – Quality, Features or Design, Advertising, Availability.
Consumer & Customer
The consumer is the one who consumes the goods, i.e. the user of the goods. It is commonly misconstrued
with the term customer, which refers to a person who buys the goods or commodity and pays the price for
it.
E.g.: The person who bought the diaper is a customer and the baby is the consumer

New Product development is a journey. It’s the road which leads to the actual product and then the actual
product to the market. Every product goes through a number of stages before being introduced in the
market.
Idea Generation
The first stage of the New Product Development is the idea generation. Ideas come from everywhere, can
be of any form, and can be numerous. This stage involves creating a large pool of ideas from various
sources, which include –
Internal sources – many companies give incentives to their employees to come up with workable
ideas.
SWOT analysis – Company may review its strength, weakness, opportunities and threats and come
up with a good feasible idea.
Market research – Companies constantly reviews the changing needs, wants, and trends in the
market.
Customers – Sometimes reviews and feedbacks from the customers or even their ideas can help
companies generate new product ideas.
Competition – Competitors SWOT analysis can help the company generate ideas.
Idea Screening
Ideas can be many, but good ideas are few. This second step of new product development involves finding
those good and feasible ideas and discarding those which aren’t. Many factors play a part here; these
include –
Company’s strength,
Company’s weakness,
Customer needs,
Ongoing trends,
Expected ROI,
Affordability, etc.
Concept Development & Testing
The third step of the new product development includes concept development and testing. A concept is a
detailed strategy or blueprint version of the idea. Basically, when an idea is developed in every aspect so as
to make it presentable, it is called a concept.
All the ideas that pass the screening stage are turned into concepts for testing purpose. You wouldn’t want
to launch a product without its concept being tested. The concept is now brought to the target market. Some
selected customers from the target group are chosen to test the concept.
Business Strategy Analysis & Development
The testing results help the business in coming up with the final concept to be developed into a product.
Now that the business has a finalized concept, it’s time for it to analyse and decide the marketing, branding,
and other business strategies that will be used. Estimated product profitability, marketing mix, and other
product strategies are decided for the product.
Other important analytics includes
Competition of the product
Costs involved
Pricing strategies
Breakeven point, etc.
Product Development
Once all the strategies are approved, the product concept is transformed into an actual tangible product.
This development stage of new product development results in building up of a prototype or a limited
production model. All the branding and other strategies decided previously are tested and applied in this
stage.
Test Marketing
Unlike concept testing, the prototype is introduced for research and feedback in the test marketing phase.
Customers feedback are taken and further changes, if required, are made to the product. This process is of
utmost importance as it validates the whole concept and makes the company ready for the launch.
Commercialization
The product is ready, so should be the marketing strategies. The marketing mix is now put to use. The final
decisions are to be made. Markets are decided for the product to launch in. This stage involves briefing
different departments about the duties and targets. Every minor and major decision is made before the final
introduction stage of the new product development.
Distribution
Distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of
making a product or service available for the consumer or business user who needs it. This can be done
directly by the producer or service provider, or using indirect channels with distributors or intermediaries.
The other three elements of the marketing mix are product, pricing, and promotion.
Push vs pull strategy
In consumer markets, another key strategic level decision is whether to use a push or pull strategy. In a
push strategy, the marketer uses intensive advertising and incentives aimed at distributors, especially
retailers and wholesalers, with the expectation that they will stock the product or brand, and that consumers
will purchase it when they see it in stores. In contrast, in a pull strategy, the marketer promotes the product
directly to consumers hoping that they will pressure retailers to stock the product or brand, thereby pulling
it through the distribution channel.
Typical intermediaries involved in distribution include:
Wholesaler: A merchant intermediary who sells chiefly to retailers, other merchants, or industrial,
institutional, and commercial users mainly for resale or business use. The transactions are B2B (Business
to Business). Wholesalers typically sell in large quantities. (Wholesalers, by definition, do not deal directly
with the public).
Retailer: A merchant intermediary who sells direct to the public. There are many different types of retail
outlet - from hypermarts and supermarkets to small, independent stores. The transactions in this case are
B2C (Business to Customer).
Agent: An intermediary who is authorized to act for a principal in order to facilitate exchange. Unlike
merchant wholesalers and retailers, agents do not take title to goods, but simply put buyers and sellers
together. Agents are typically paid via commissions by the principal. For example, travel agents are paid a
commission of around 15% for each booking made with an airline or hotel operator.
Jobber: A special type of wholesaler, typically one who operates on a small scale and sells only to retailers
or institutions. For example, rack jobbers are small independent wholesalers who operate from a truck,
supplying convenience stores with snack foods and drinks on a regular basis.
• Advertisement: Bande Ache hai – ICICI Bank
• Insight: Jo Zimmedari nibhate hai, jatate nai.
For the men of the society who take up many responsibilities.
Pricing Strategies:
1. Cost-plus pricing—simply calculating your costs and adding a mark-up
2. Competitive pricing—setting a price based on what the competition charges
3. Value-based pricing—setting a price based on how much the customer believes what you’re selling
is worth
4. Price skimming—setting a high price and lowering it as the market evolves

5. Penetration pricing—setting a low price to enter a competitive market and raising it later
BCG MATRIX
Stars
These are well established products or brands with fantastic opportunities to generate large amounts of
ROI.
High growth market
High market share
Cash neutral
Hold
Question Marks
Unsure in which direction these products will go. Known as the problem child(s), they can be turned into
stars or end up as dogs.
High market growth
Low market share
Cash absorbing
Build
Cash Cows
These are well-established and consistently produce cash, however the growth opportunities are limited.
Low market growth
High market share
Cash generating
Milk
Dogs
Products which have little or no value. They are a drain on resources and cash. It is often difficult to make a
profit from dogs.
Low market growth
Low market share

Cash neutral
Diversify
Product Life Cycle
All product categories have a specific life span called the product life cycle. The product life cycle can
pertain to unnamed products as well as those associated with a specific brand name. Many factors, such as
competition and technology, affect brands and their product life cycle. Nevertheless, brands or products
typically go through five stages of growth: development, introduction, growth, maturity and decline.
Development Stage
Technically, the development stage is the "incubation stage" of a brand's product life cycle. The
development stage is where the product concept is conceived, developed, branded and even tested before
being introduced to the market. A lot of capital typically goes into the development stage, including
product and advertising costs. It is certainly conceivable that a poor concept idea or the lack of capital
could end the life of a brand before it is introduced.
Introduction Stage
Brands and their product life cycle actually commence in the public's eye during the introduction stage.
During the introduction stage, companies heavily advertise their brands and products; and execute trade
show and in-store promotions for potential wholesale and retail customers, respectively. Company
advertising is mainly focused on building brand awareness. Companies usually price their brands relatively
high during the introduction stage to recoup some of their development costs.
Competition is low or non-existent during this stage. Thus, a successful brand concept will usually elicit
heavy sales and propel the brand toward the growth stage.
Growth Stage
Brands enter the growth stage of the product life cycle when sales start growing exponentially. Brand
managers may increase distribution during the growth stage to further enhance sales. A company may also
improve the quality of their product brands, adding various flavors or features. Because of the success of
one or more companies, more competitors will enter the market with their own brands. Consequently, some
competitors may try to lower prices to gain marketing share.
Maturity Stage
Because of increased competition, a company's brands will eventually reach the maturity stage of the
product life cycle. During this stage, competition for market share may be fierce. New competitors will
often have trouble successfully entering the market as market potential is limited. A company will often
need to differentiate the brand of products toward a specific segment. For example, the company that first
entered the market may focus on being the quality leader. The company may keep prices relatively higher
to maintain its premium image. The target market may include older users with a higher household income.
Decline Stage
The decline stage is where sales start to fall for a company's product brands. At this point, it is still possible
to extend the life of the product by finding new markets for the brand like international markets; or even
finding additional uses by repositioning the brand. For example, a small detergent manufacturer may
extend the life of the brand by selling to emerging markets, such as India. The company could also
potentially extend the life of the brand by marketing the detergent in car washes, hotels, schools and even
hospitals. Ultimately, a brand may need to be sold or gradually discontinued if it is no longer profitable.
Blackberry Product Life cycle stages:
• In figure various products / phone devices of blackberry is shown according to their current phase
position in Product Life Cycle diagram (Based on sales values).
• Other than Mobile device market, Blackberry’s tablet products are still in somewhere between
development and introduction stage.
Ansoff Matrix
Market penetration
Market penetration occurs when a company penetrates a market with its current products. It is important to
note that the market penetration strategy begins with the existing customers of the organization. This
strategy is used by companies in order to increase sales without drifting from the original product-market
strategy.
Companies often penetrate markets in one of three ways: by gaining competitors customers, improving the
product quality or level of service, attracting non-users of the products or convincing current customers to
use more of the company's product, with the use of marketing communications tools like advertising etc.
This strategy is important for businesses because retaining existing customers is cheaper than attracting
new ones, which is why companies like BMW and Toyota (Lynch, 2003), and banks like HSBC engage in
relationship marketing activities to retain their high lifetime value customers.
From Blackberry’s perspective: Increase sales of Z and Q series phones among youth and corporates,
enhance after-sale customer experience by giving superior customer services.
Product development
Another strategic option for an organization is to develop new products. Product development occurs when
a company develops new products catering to the same market. Note that product development refers to
significant new product developments and not minor changes in an existing product of the firm. The
reasons that justify the use of this strategy include one or more of the following: to utilize of excess
production capacity, counter competitive entry, maintain the company's reputation as a product innovator,
exploit new technology, and to protect overall market share.
From Blackberry’s perspective: Re-innovate Blackberry device design, introduce phones that are suitable
for Android Platform.
Market development
When a company follows the market development strategy, it moves beyond its immediate customer base
towards attracting new customers for its existing products. This strategy often involves the sale of existing
products in new international markets. This may entail exploration of new segments of a market, new uses
for the company's products and services, or new geographical areas in order to entice new customers.
From Blackberry’s perspective: Increase sales of Curve series phones by re- introducing them in new and
emerging markets.
Diversification
Diversification strategy is distinct in the sense that when a company diversifies, it essentially moves out of
its current products and markets into new areas. It is important to note that diversification may be into
related and unrelated areas. Related diversification may be in the form of backward, forward, and
horizontal integration. Backward integration takes place when the company extends its activities towards
its inputs such as suppliers of raw materials etc. in the same business. Forward integration differs from
backward integration, in that the company extends its activities towards its outputs such as distribution etc.
in the same business. Horizontal integration takes place when a company moves into businesses that are
related to its existing activities.
Therefore, diversification is a high-risk strategy as it involves taking a step into a territory where the
parameters are unknown to the company. The risks of diversification can be minimized by moving into
related markets.
From Blackberry’s perspective: Enter into tablets and Mobile App markets, launch Blackberry apps for
android / iOS phones, enter into consumer electronics items such as Bluetooth devices, hands-free etc.
Porter’s Five Forces Analysis
Michael Porter’s “Five Forces Analysis” is a framework for business development, and one of the most
often used business strategy tools. The framework identifies five fundamental forces that determine the
competitive force of a market. These forces include the following:
1. The intensity of competitive rivalry
2. The threat of the entry of new competitors
3. The threat of substitute products
4. The bargaining power of consumers
5. The bargaining power of suppliers
These five forces directly affect your company’s ability to serve your customers and make a profit. A
change in any of these forces generally requires your company to re-assess your competitive strategies.
Force 1: The Degree of Rivalry
Rivalry amongst existing competitors stands at the centre of these five forces. How intense is competition?
One of the key factors relates to price competition.
Force 2: The Threat of Entry

The threat of new entry can bring considerable latent but effective competitive pressure to a market, unless
barriers to entry exist. Entry conditions will determine how difficult, or costly, it is for new firms to enter a
market.
Force 3: The Threat of Substitutes
The availability of substitutes is generally a matter of degree since most products or services are
substitutable in at least some attributes.
Force 4: Buyer Power
The bargaining power of buyers can be an important determining force of an industry’s competitive
situation.
Force 5: Supplier Power
The bargaining power of suppliers to an industry can impact the competitiveness of an industry.
The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business
situation. This is useful, because it helps you understand both the strength of your current competitive
position, and the strength of a position you are considering moving into.
POTENTIAL NEW ENTRANTS INTO THE INSTANT NOODLES MARKET IN INDIA
Initially, Maggi noodles with its “two-minute formula” dominated the Indian noodles market. Report
published by The Economic Times on 30th august, 2010 shows that Maggi is losing its market share
because of entry of newer entrants like GlaxoSmithKline's (GSK) Horlicks Foodles, Hindustan Unilever's
(HUL) Knorr Soupy noodles, Big Bazaar's Tasty Treat, Top Ramen and several other smaller players.
Others like Capital Foods' Ching's Secret and CG Foods's Wai-Wai, Spencer’s smart choice noodles,
Aditya Birla Retail's Feasters are notching up share. HUL and GSK have positioned their product as
‘healthy snacking’. Foodles comes with the punch line of “Noodles without the ‘No’: Available only in the
multi- grain and wheat variant, the product is being promoted as having higher nutritional value compared
to other popular brands. The main unique selling proposition (USP) of Foodles is the vitamin-packed
health-maker sachet that comes with the pack. The data shows that Maggi's share of instant noodles, on an
all-India basis, across urban markets, has slipped consistently between December '09 to July '10. While
Maggi instant noodles had a 90.7% share in December '09, the share dropped to 86.5% in July '10 on an
all- India basis. A regional split of the data shows that Maggi's instant noodles' value market share has
fallen across the east, south, north and west zones for the same period.
Substitute of noodles are also products like PASTA, SOUP, VEG CAKES which many customers are now
preferring due to increased health consciousness. The existence of products outside of the realm of the
common product boundaries increases the propensity of customers to switch to alternatives. Relative price
performance of substitute Buyer switching costs. Perceived level of product differentiation. Number of
substitute products available in the market. Ease of substitution. Information-based products are more
prone to substitution; as online product can easily replace material product. Quality depreciation.
BARGAINING POWER OF CUSTOMERS
Maggi noodles faces various competitors in market those increases the customer`s bargaining power of
customer YIPPEE (ITC), WAI WAI (C.G FOODS), Knorr Soupy Noodles(HUL), Horlicks
Foodles(GlaxoSmithKline), Feasters (Aditya Birla Group’s), Top Ramen (Nissin Food Products Co.), Big
Bazaar’s Tasty Treat
YIPEE
Wheat is the key ingredient of the noodle block. Ashirvaad India`s no 1 atta is used. Do not lump even after
30 mins of cooking.
WAI WAI noodles are pre cooked, flavored and fried. It has 3 seasonings varieties to add to the taste buds.
KNORR SOUPY
Khao Peeo Khelo
Target kids
HORLICS FOODLES
Good for health Very intelligently Maggi had taken different type of strategies to held their existing
customer and to attract new customers.
What Maggie did:
Very intelligently Maggi had taken different type of strategies to held their existing customer and to attract
new customers. They began to represent or promote the product in the following way:
They said it is very easy to cook and tasty also.
• It takes only 2 minutes to prepare.
• They presented the tag line “Taste bhi Health bhi”
• Bring different types of variety with different flavor Maggi 2 minutes’ noodle`s Flavor
• They target Kids, office goers, youths, working women
• They began to make a brand image using high promotion
• Promotional campaign in schools
• Packing is the biggest plus point of maggi (even in different sizes).
• Introducing a fictitious character who can connect with kids for better recall.
• Organizations contests, games and industrial visits for school kids to further strengthen brand
image.
• Inviting housewives to send new innovative recipes made from maggi and introduce rewards for
them.
• They had given enough supply to the sellers and gave them different types of offers that made them
motivated to sell the product more.
Bargaining Power of Supply
Bargaining power of a brand only increase, when there is more availability of suppliers for the raw
materials. The vice-versa effect takes place when there is less availability of suppliers. With the
consideration of all the above both the brand as well suppliers have to keep in their mind about the
quality of the product.
Competition with industry
Maggi instant noodles, food major Nestlé’s flagship brand that has dominated the Indian instant noodle
market for nearly three decades, is losing market share on a monthly basis to newer entrants such as,
Glaxosmithkline’s Horlicks Foodles , HUL’S Knorr soupy noodles, Big Bazaar’s Tasty Treat, Top Ramen
and several other smaller players. The latest to join the battle, business conglomerate ITC Ltd. Has decided
to take its instant noodle brand, Sunfeast Yipee, Pan-India after tasting initial success in South India. WAI
WAI 1-2-3 noodles.
PRODUCT LINE EXTENSIONS
Market leaders, Challengers, Followers, Nichers
● Market Nicher:
1. End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a
2. Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production
3. Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts and
5. Specific customer specialist: Weber carburettor is a company which provides carburettors to only high
1. Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna”
for the rural people and outshine the other coloured TV players who had a less focus on these areas.
outshine the other.
● Market leader
1. Cocoa- cola
communication.
● Market follower
1. Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from
Kunal Deshmukh
PG-2 (76)
● A customer is a person or company that receives, consumes or buys a product or service and can choose
between different goods available in the market.
● A consumer is one that buys good for consumption and not for resale and commercial purpose. The
consumer is an individual who pays some amount of money or the thing required to consume goods and
services.
● Example: For a products like Children’s Toy (Barbie by Mattel) is bought by the parents of the kids who are
the customers but the consumers are the kids who play with the toys.
DISTRIBUTION
● Zero Level Channel – Manufacturer To Consumer

● Example : E- business (Amazon selling various products)
● One Tier Channel -- Manufacturer To Retailer To Consumer
● Example : Avon selling cosmetic products through retailers.
● Two Tier Channel -- Manufacturer To Distributor/Agent To Retailer To Consumer

● Example : Mobile phone brand Redmi by Xiaomi.
● Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer To Consumer

● Example : The products sold by Nestlé.
CONSUMER BUYING BEHAVIOR
● PROBLEM RECOGNITION
o A person see’s a commercial for a new pair of jeans, stimulates his/her recognition that they need a
new pair of jeans.
● INFORMATION SEARCH
o External search if you need more information. Friends and relatives (word of mouth). Marketer
dominated sources; comparison shopping; public sources etc.
● A successful information search leaves a buyer with possible alternatives, the evoked set.
● For the search of new pair of jeans, the person would do external search like ask a few friends, do a Google
search for places to shop etc.
● EVALUATION OF ALTERNATIVE
o After deciding various alternatives like
o The different types of jeans that you want

o Straight , Slim fit , Flared Bootcut etc
● PURCHASE DECISION
● Final Decision on which place (shop) as well as which type jean is decided and the purchase is made.
● POST PURCHASE EVALUATION
o Evaluation if the pair of jeans chosen was actually the right choice and would you go back to the
store for repeat purchase.
● Threat of Rivalry: The number of competitors in the industry in which Reliance Industries operates
are very few. Most of these are also large in size. This means that firms in the industry will not make
moves without being unnoticed. This makes the rivalry among existing firms a weaker force within
the industry. The fixed costs are high within the industry in which Reliance Industries operates. This
makes the companies within the industry to push to full capacity. This also means these companies to
reduce their prices when demand slackens. This makes the rivalry among existing firms a stronger
force within the industry. The exit barriers within the industry are particularly high due to high
investment required in capital and assets to operate. The exit barriers are also high due to government
regulations and restrictions. This makes firms within the industry reluctant to leave the business, and
these continue to produce even at low profits. This makes the rivalry among existing firms a stronger
force within the industry.
● Threat of New Entrants: The product differentiation is strong within the industry, where firms in the
industry sell differentiated products rather a standardised product. Customers also look for
differentiated products. There is a strong emphasis on advertising and customer services as well. All
of these factors make the threat of new entrants a weak force within this industry. The capital
requirements within the industry are high, therefore, making it difficult for new entrants to set up
businesses as high expenditures need to be incurred. Capital expenditure is also high because of high
Research and Development costs. All of these factors make the threat of new entrants a weaker force
within this industry.
● Threat of substitutes: There are very few substitutes available for the products that are produced in
the industry in which Reliance Industries operates. The very few substitutes that are available are also
produced by low profit earning industries. This means that there is no ceiling on the maximum profit
that firms can earn in the industry in which Reliance Industries operates. All of these factors make the
threat of substitute products a weaker force within the industry.The very few substitutes available are
of high quality but are way more expensive. Comparatively, firms producing within the industry in
which Reliance Industries operates sell at a lower price than substitutes, with adequate quality. This
means that buyers are less likely to switch to substitute products. This means that the threat of
substitute products is weak within the industry.
● Bargaining Power of Suppliers: The number of suppliers in the industry in which Reliance Industries
operates is a lot compared to the buyers. This means that the suppliers have less control over prices
and this makes the bargaining power of suppliers a weak force.The product that these suppliers provide
are fairly standardised, less differentiated and have low switching costs. This makes it easier for buyers
like Reliance Industries to switch suppliers. This makes the bargaining power of suppliers a weaker
force.
● Bargaining Power of Buyers: The number of suppliers in the industry in which Reliance Industries
operates is a lot more than the number of firms producing the products. This means that the buyers
have a few firms to choose from, and therefore, do not have much control over prices. This makes the
bargaining power of buyers a weaker force within the industry. The product differentiation within the
industry is high, which means that the buyers are not able to find alternative firms producing a
particular product. This difficulty in switching makes the bargaining power of buyers a weaker force
within the industry.
Pricing Strategies
1) Skimming
● Apple’s mobile phones are priced higher than Samsung, Xiaomi (Read in Skiming)
● Chocolates like Bournville, Dairy Milk silk priced higher
● Signature collection in Automobiles like Rolls Royce
2) Penetration
● Smart Phones : The two major suppliers of smart phones, Samsung and Apple, follow
markedly different pricing strategies. Apple uses a skimming pricing strategy, and has
been able to establish a strong brand loyalty with its customers. This strategy keeps prices
high and never drops or offers any discounts. Apple customers are convinced that its
products are high quality, and each new phone model comes with more exciting features.
And people are willing to pay the steep prices. On the other hand, Samsung is
continuously offering Android phones at introductory prices and discounts, hoping to
build brand loyalty. Samsung also partners with cell-phone companies to provide Android
phones at cheap prices in exchange for commitments to long-term contracts. Consumers
get enticed by the low prices and overlook the cost of the terms of the contract.
Apple sell expensive phones to a small market, while Samsung sells a high volume of
phones to a broader consumer base.
● A combination of rich product assortment and making it available at everyday low price
(EDLP) is DMART’s winning formula in value retailing. For EDLP, the company
focuses on everyday low cost (EDLC)
● Big Bazaar
4) Surge Pricing
● Higher price of Travels services or bus services/Flight services on days near festive
seasons
● Apparel industry during peak season like and fbb or a a shopping mall
5) Discount Pricing
● Customer Value Discounts - A 15%-off coupon for first-time customers to get them
interested such as a ZOMATO or Google pay offering Cashnack
● Seasonal Discounts – Independence day, Diwali Sales, Christmas Blast
● Bundle Discounts – Buy one get one free
● L’Oreal is a great example, providing the public with three different segments at different
prices. They have positioned themselves in the luxury market, professional market, and
consumer market, allowing open purchasing throughout. They give consumers the option
to buy Kiehl’s Shampoo for Rs.2500, Redken for Rs.1500 or Garnier for Rs.300.
● Artificial Time Constraints on E commerce saying HURRY UP, ONLY 3 LEFT
● Charm Pricing : 999 is better than 1000
● Innumeracy - “Buy one get one free” or “50% off a two items?” Both are the same deal
but research has shown that most people would prefer the first option, even though the
two options are identical. This phenomenon is known as innumeracy
● Price Appearance : Higher price , higher quality (Apple phones)
7) Loss Leadership
● HP printers. HP may sell printing machines free of cost. Seeing this offer everybody will
rush to the markets and get the machine. But in order to make printing machine work,
customers need to buy cartridges which are sold separately at such higher prices that even
compensates for the loss of selling printing machines for free.
● One popular example of this is a razor with disposable blades. Often, a store will price the
razor very low, but armed with the knowledge that the consumers with need to purchase
new blades, refill sets are over-priced to increase profits

● Patanjali Ayurved – To penetrate in the market
● Maruti Suzuki Cars – New Market segment where customer switching from 2 to 4 wheeler
● Mercedes India – Geographical Expansion where Benz targets Tier 2 and 3 cities
● Cadbury Dairy Milk instead of just birthday celebrations, using taglines PAPPU PASS HOGYA and
SHUBH ARAMBH to expand
● Position Defence : Parle G, Gillete Razor, Dettol Hygiene (Superior brand power makes
them impregnable)
● Flank Defense : Nestle India rolling put 2 minute Maggie noodles to appeal to young
people under the brand hot heads
● Pre-emptive defense : Ola introducing Ola shuttle service to outsmart Uber i.e. it’s
competitor in September 2015
● Counter offensive Defense : Starbucks launching Alfonso Mango Frapuccino to compete
with other coffee brands
● Mobile Defence : KFC Chizza a pizza with no base but only chicken as it’s crust, Coke
with VIO flavoured Milk
● Contraction Defense : Pepsi Atom positioned as strong, fiest to counter Coca Cola’s
thumps up. Also, Maruti Kizashi Sedan was withdrawn after failing to impress
● Apple, Hero MotoCorp, Parle G

1. Samsung:
Geographic Region 80 Countries worldwide
Density Urban & rural

Life cycle stage Bachelors, Newly married,

aged people
Occupation Students, employees and

professionals.
Behavioral Degree of loyalty Hardcore loyals, softcore
loyals, switchers.
Benefits sought Sense of belongingness,

advanced features, overall
high quality
User status Potential users, non-users,

first time users, regular
users
Mainstreamer, succeeders,
Lifestyle explorers
Positioning:
● All the products come under the name Samsun electronics which is an umbrella approach in its
branding such that subsequent products could be easily understood and accepted by the customers.
● ‘The next big thing is here’ has taken the company to the top of the smartphone market.
● Samsung uses unique tagline for each and every product.
● Samsung had innovative features like value for money, integral part of family, energy efficiency.
Differentiation:
● By manufacturing its own major components of its mobile devices, Samsung achieves its cost
● It uses combined cost leadership and differentiation strategy by offering unique benefits in a
1. Tata Nano:
Idea Generation:
● To create safe, affordable, all weather form of transport to a family.
● To create an option for people who want to move from 2 wheeler to a 4 wheeler at affordable
price.
Idea Screening:
● A scooter with 2 extra wheels at the back for extra stability?
● An auto rickshaw with 4 wheels?
● 4 wheeled rural car?
● But market wanted a car and it should be like a car.

● Mr. Girish Wagh talked with the customers.
● 3 wheeler drivers inevitably insisted on cheap and dependable trucks
● But he kept asking ,” Why do you want a 4 wheeler?”
● Finally he got an answer saying that if I had a 4 wheeler, I would have better marriage prospects
in my village.
● Thus, 4 wheels have emotional appeal and not just practical
● Car to cost Rs.1 lakh on road
● Car to be built on different platforms than the conventional ones
● It must meet all safety and regulatory requirements.
● A truly people’s car: Low cost, safe and fuel efficient.
Business Analysis:
● What makes nano so cheap?
● Reduction in the number of non-essential parts
● Redesigning essential parts to lower cost and maximize functionality without reducing quality.
● Weight reduction wherever possible
● Three lug nuts instead of the usual four.
● Same dashboard can be used for Right hand as well as Left Hand drive models.
● Nano is constructed of components that can be built and shipped separately to be assembled in a
variety of locations.
● Use of aluminum engine to reduce weight and costs.
● Use of light weight steel wherever possible
Testing:
● Crash Testing
● Testing on torture tracks
Commercialization:
● Tata Nano was launched in 2008.
● It was promoted using advertisement through various mediums.
● The cost of the car was Rs. 1 lakh
Market Followers
1. Yahoo vs Akash Arora:
● Akash Arora adopted the domain name of Yahoo on his website “yahooindia.com”
● It offered similar services like Yahoo and attempted to cash in on the goodwill used by Yahoo.
● People could not differentiate between Yahoo and Yahooindia
● Hence, Yahoo sued Akash Arora for using similar domain name as it offered same services like Yahoo.
● This was a case of copying the trademark of domain name Yahoo and Akash Arora was held liable for it
and had to pay the respective damages under Trademarks Act, 1999.
Adapters:
● Britannia Good day launched in 1986 (33% market share)
● Parle 2020 launched in 2008 (18-20% market share)
● Dish TV launched in 2004
● Tata Sky launched in 2006
Imitators:
● Imitation jewelry
● Footwears
Cloners:
● Colgate and Cooolgate
● Bisleri and Bilseri
● Gucci and Gucca
● Tide and Tied
Counterfeiters:
● Samsung phones are counterfeited in Bangkok
● DVD Piracy
BCG Matrix
The Boston consulting group’s product portfolio matrix (BCG Matrix) is designed to help with long term strategic
planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to
invest, to discontinue or develop products. It is also known as the growth/share matrix.
For major organizations like HUL, ITC etc which have multiple categories and within the categories, they have
multiple lines of products, the BCG analysis becomes very important. At a holistic level, they get to make a decision
on which product to continue and which product to be divested. Which product can give new returns with good
investment, and which products are reaching the apex of market share.
● Cash Cows – High market share but low growth rate (Most profitable).
● Stars – High market share and High growth rate (High competition).
● Question marks – Low market share and high growth rate (Uncertainty).
● Dogs – Low market share and low growth rate (Less profitable or may even be negative profitability)
Ansoff Matrix:
The output from the Ansoff product or market matrix is a series of suggested growth strategies which set the
direction for the business strategy.


Product extensions are versions of the same parent product that serve a segment of the target market and increase the
variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft
drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely
to buy a new product that has a tried and trusted brand name on it.
Line extensions occur when a company introduces additional items in the same product category under the same
brand name such as new flavours, forms, colours, added ingredients, package sizes. Line extension occurs when the
company lengthens its product line beyond its current range. The company can extend its product line horizontally
(Width) or vertically (Depth).
Indian example is HUL's Wheel Vs RIN both which offer the same core benefit which is a washing detergent, but
targeted at different segments. One other example if of Horlicks, which has extended its product line vertically in the
form of Junior Horlicks, Women’s Horlicks and Horlicks Lite.
Examples:
The Market Challenger Strategies are the marketing strategies adopted by the firms, either occupying the third or
runners-up position in the market, to attack the leader or the immediate competitor with the intention to capture a
greater market share and earn huge revenues.
Generally, the market challengers are those firms, which have a good reputation in the market and enjoys a strong
financial position. These firms target the market leader or the competitor at the same level with the objective, to
reach the first position in the market or become an industry leader.
1. Frontal Attack: This is a direct attack based on the competitors’ strength. Usually the attack is done by
offering lower price, better quality product, aggressive advertising, or better service quality to customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the challenger with
about 9% market share. But by, targeting the product (Snapdragon 800 series processor), price (about half of
Samsung), place (flash sales) Xiaomi became the market leader with 25% market share.
2. Flank Attack: This means attacking the competitors’ weak points. Market challenger can identify the weak
points based on geographic. This means challenger find the area competitors are under performing and
develop marketing strategy to cater that area. Other than that, they can also challenge the competitors based
on segmentation. This is where challenger identifies the segment that competitors left out and create a
product to satisfy them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by introducing the
colour TV “Sampoorna” for the rural people and outshine the other coloured TV players who had a less
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing the robust,
durable, rough and tough outdoor shoes, and hence captured the untapped market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths and weaknesses at the
same time. Simply put, encirclement attack is the combination of frontal and the flank attacks.
Eg. Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and also by promoting
that unlike Dettol, Savlon doesn’t sting and smells much better.
Eg. Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing Maruti Suzuki to
do the same
4. Bypass Attack: The Bypass Attack is the most indirect marketing strategy adopted by the challenging firm
with a view to surpassing the competitor by attacking its easier markets. The firm can adopt any of the three
approaches before launching the bypass attack; they can either diversify into the unrelated products, into the
new geographical markets or leapfrog into the new technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral water brand, very
much before the coke’s Dasani Brand.
Eg. Parle Agro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured carbonated soft
drink
5. Guerrilla Attack: Guerrilla warfare is the marketing strategy adopted by the challenger firm intended to
launch the intermittent attacks with an intention to harass or demoralize the competitor.
Eg. Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce websites adopt this
strategy by offering deep price cuts certain days a year)
Eg. Dunkin brand used this strategy when it came up with its espresso machines in every Dunkin US
location. Dunkin' has also tweaked its espresso strength and flavour profile, updated its coffee packaging,
and launched a marketing campaign with weekly espresso-beverage-based promotions running through the
end of the year and thus surpassed Starbucks to become market leader.
PRODUCT LIFE CYCLE
MAGGI ATTA NOODLES

● It’s a Brand of Instant Noodle made by Nestle India Ltd.
● It was found by the Maggi family in Switzerland in the 19th century.
● Nestle launched Maggi for the first time in India in the year 1982.
● Nestle wanted to explore the potential for such an Instant food among the Indian market.
● It took several years and lot of money for Nestle to establish its Noodles brand in India.
● Now it enjoys around 90% market share in this segment.
ISSUES
INTRODUCTORY
STAGE
● High-failure Rates
● No Competition
● Frequent product and Modification
● Limited Distribution
● High-marketing and product costs
● Promotion focuses on awareness and Information
● Promotional campaigns in school.

● Advertising strategies: - focusing on kids.
New product innovation according to the need of consumers:
Veg Atta Noodles
GROWTH STAGE

• 10 yrs back it enjoyed around 50% market share in this segment which was valued at around 250 crores.
• In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Over the years,
NIL also introduced several other products like soups and cooking aids under the Maggi brand. Offered in more
sizes, flavours,
options
MATURITY STAGE

• In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2- minute noodles by launching a
new category of liquid snacks under its food brand, Knorr Annapurna.
• The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had four variants: two
chicken options and two vegetarian.
• Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups, particularly
office-goers. Many consumer products are in Maturity
Stage.
DECLINE
STAGE
• Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or adoption of
substitute products
Market Nichers
Mysore Sandal Soap
During World War I, the exports were stopped and the reserves of sandalwood piled up. The solution was to use them
to extract sandalwood oil. To this end, in 1916, the Government Sandalwood Oil Factory was established by the
Maharaja of Mysore, His Highness Nalwadi Krishna Raja Wodeyar and Diwan Sir M Visvesvaraya.
In 1918, when the Maharaja received a gift pack containing soaps made using sandalwood oil, the idea of using the
natural sandalwood oil for making soap was born. To put this into action, SG Shastry, a qualified industrial chemist,
was sent to London for advanced training in soap and perfumery technology. On his return, he developed a sandal
perfume. This marked the beginning of the era of the Mysore Sandal Soap.
This was the first indigenous soap produced in the country with sandalwood as the base fragrance; it is also the only
soap in the world made from 100 per cent pure sandalwood oil (while it contains other vegetable oils like clover leaf,
vetiver, patchouli and orange, there is no animal fat). The soap has 80 per cent TFM (Total Fatty Matter) which
indicates that it is of the highest quality.
As sales increased, the production capacity was enhanced and in 1944, a second plant was established in Shimoga to
extract sandalwood oil. By 1965, the company was exporting its products. In 1980, the Government Soap Factory
became a public sector enterprise and was renamed KSDL.
Mysore Sandal Soap has a unique place in the Indian Soap market. This soap with a history dating from 1918 has
survived in a market which is witnessing cut throat competition. Mysore Sandal Soap is manufactured by the Public
sector company : Karnataka Soaps &Detergents ltd ( KSDL). Although this is a product from public sector, the brand
has been able to create a unique place in the Indian consumer's mind. In the Rs 4500 crore Indian soap market, this
brand has a minuscule share of only 80 crore that is 2%. The brand can be said to be a niche brand in the premium
soap category. The brand typically faces the problem that all heritage brands faces, that is to stay relevant to the new
generation.Mysore Sandal is facing the issue that its loyal users are getting older and the new generations are moving
to more visible brands. Those who have used this brand will vouch for its quality and fragrance. The KSDL has
developed new varieties of sandalwood soap during the last couple of years. Besides Mysore Sandal Gold soap, it has
introduced into the market the Mysore Sandal Millennium Luxury Soap, which was launched in 2013 priced at Rs
720 for a 150 gm cake.
Meanwhile, the ‘Soap Santhe’ of the KSDL has been receiving good response with more customers visiting the
Nanjaraja Bahadhur Choultry in Mysuru to make a choice selection from among the state government-run products.
Its products are now being promoted by organising annual ‘Soap Santhe’ to expand its reach. In all, 38 different
products, ranging from soaps, sandal oil, incense sticks, detergents and cosmetics are being showcased and marketed
at the ongoing fair in Mysuru. According to research, in both urban and rural markets, the Mysore Sandal soap (basic
variant) is the predominantly preferred soap. Next is the Mysore Sandal Classic soap, which is at the second position.
The other fast moving variant is the Mysore Sandal Gold Soap.
⮚ End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a long
⮚ Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production and
⮚ Customer size specialist: Tree of Life(Hallmark) specializes in only Jewish greeting card and gifts and
celebrates Jewish faith.
⮚ Product specialist: UNTUCKit brand has created a new line of products for people who do not like tucked
⮚ Specific customer specialist: Weber carburettor is a company which provides carburettors to only high end
cars like Porsche, Ferrari, and BMW.

The Surf Ad: For Padamsee, Lalitaji always remained a special character since she was crafted on his mother. My
mother would always say, ‘Saste cheez kharidne mein aur acche cheez kharidne mein farak hota hai’ [there’s a
difference between buying cheap and buying good], and that’s how we created that brand value,” Padamsee had said.
“The price of Surf washing powder was higher than other detergent powder brands, but we were determined not to
alter the price or lower it — so we went ahead with it and it was a huge success,” Padamsee had explained while
recalling why the ad worked.
Lalitaji, played by Kavita Chaudhury, was not a diminutive woman. She was a homemaker who was assertive and
powerful. She convinced the audience that Surf was the right product to buy, even though it meant shelling out a bit
more. “Back in those days, it was not an easy task to promote a product that was more expensive than others,” he had
said. Buying Surf almost became a status symbol in India.
Padamsee would go on to create many iconic ads for India. Liril and Lalitaji continue to be among his best work.
Both showed powerful women who were taking their own decisions or doing their own thing, even though they
seemed to represent two different faces of India.
This was an ad in response to Nirma. And one that used a totally different approach. The iconic Nirma ad highlighted
the brand in a very filmy way – there was a lot of dancing, a lot of modelling and a lot of music. Surf on the other
hand just went in with a basic testimonial ad, with no flourishes whatsoever. The Surf ad was very direct, a Q&A that
answered why Surf should be THE brand of detergent for anyone who did not want to compromise on quality. The
two approaches were so different from each other yet both somehow managed to get A LOT of attention.
The Surf ad is a great competitive ad. It literally is taking down the competition, although Nirma is not mentioned by
name. And it is almost built on arrogance – Lalitaji is not only unapologetic about buying Surf but seems actually
annoyed at having to justify her purchase. Although, she seems almost contradictory at times. She is ready to haggle
for the price of fruit, but then claims that she will not compromise on washing. That seems ironic, when you consider
that washing powder is not as important for households as food is!
But the fact that the ad used the “ideal” Indian housewife in perfectly white and bright saree, Lalitaji, bargaining with
the vendor also established that she was not lazy or naive. It put the idea of Lalitaji being an informed and clever
buyer who would not pay even a penny extra for a product. And when a buyer as smart as Lalitaji advocates a
product’s quality then it becomes even more believable, which is what the ad used as its basic premise.
The ad established that Surf gives more importance to quality over price.
PRIYANKA NANGALIA
PG- II
ROLL NO: 97
1)CUSTOMER AND CONSUMER
Who is a Customer?
Customer is the person who pays the price and purchases the goods or services of a certain producer or a
business. Therefore, the customer is not essentially the consumer as well. The customer may pay the price
and buy the products and give them to a different person who then becomes the consumer of them.
Who is a Consumer?
Consumer is the person who consumes or uses the goods or the services. The customer can be the
consumer as well, however not in all cases. Nonetheless, it is the consumer who will know the genuine
quality and the nature of the product or the service since it is the consumer who consumes it
Example: Baby Products. Mother (Customer), Baby (Consumer)

2) NEW PRODUCT DEVELOPMENT
TATA NANO
Nano, popularly known as the Rs 1-lakh car, was conceived in 2003 and in 2006 Tata Motors decided to set
up the Nano plant in Singur in West Bengal. Work began at Nano plant at Singur on January 21, 2007 and
the car was unveiled at the Ninth Auto Expo in New Delhi in January 2008
Tata Nano was launched in India, targeting the families who use bikes as a form of travel. It was designed
to allow the families to have a more comfortable, safe means of travel.
Idea Generation: To create an option for people who want to move from 2 wheelers to 4 wheeler in
affordable price bracket.To create a safe, affordable, all weather kind of a vehicle. To move from 2 wheeler
to 4 wheeler at affordable price.
Idea Screening: A scooter with 2 extra wheels at the back for extra stability? An Auto-Rickshaw with 4
wheels? Wheeler car made of Engineering Plastics? 4 wheeled rural car? But Market Wanted a Car and It
should be like a Car.
Concept Testing and development: Mr. GirishWagh talked with customers, 2/3 Wheeler men inevitably
insisted on cheap and dependable truck. But he still kept asking “Why do u want a 4 wheeler?’’. Finally he
got the answer, “If I had a 4 wheeler, I would have better marriage prospects in my village.” 4 wheels have
emotional appeal, not just practical.
Business Analysis: Regarding affordability and feasibility, revenue generation and demand forecasting
Product Development and Design: Design Inputs from Institute of Development in Automotive
Engineering, Italy. Constant Design changes. Design adaptations from Daewoo Matiz and Tata Indica. 37
patents associated with the design of Nano. Modular Design Revolution: The Nano is constructed of
components that can be built and shipped separately to be assembled in a variety of locations.
“Gandhian Engineering” Approach i.e. More from less for more and more people. Much spacious than
Maruti 800 (20 % more). Use of Aluminum Engine to reduce weight and cost. Use of light weight steel
wherever possible
Prototype Development: First Prototype: Vehicle which had bars instead of doors and plastic flaps to
keep out the monsoon rains. It was closer to a “Quadricycle” than a car. Had to make several changes with
respect to engine and pedal size and the overall size of the car.
Test Marketing: Pilot testing
Commercialization: Decisions regarding marketing and advertising. Fixing prices and market strategies.
3)PRODUCT MIX
Product mix, also known as product assortment, refers to the total number of product lines a company offers to
its customers. For example, your company may sell multiple lines of products. Your product lines may be fairly
similar, such as dish washing liquid and bar soap, which are both used for cleaning and use similar
technologies. Or your product lines may be vastly different, such as diapers and razors.
4)PRODUCT LINE EXTENTION

5)PORTERS 5 FORCE MODEL:
Mac Donalds
In this Five Forces analysis, McDonald’s experiences the effects of external factors at varying intensities,
based on the variations among markets around the world.
Competitive rivalry or competition – Strong
Bargaining power of buyers or customers – Strong
Bargaining power of suppliers – Weak
Threat of substitutes or substitution – Strong
Threat of new entrants or new entry – Moderate
Competitive rivalry or competition
McDonald’s faces tough competition because the fast food restaurant market is saturated. This element of
the Porter’s Five Forces analysis model tackles the effects of competing firms in the industry environment.
In McDonald’s case, the strong force of competitive rivalry is based on the following external factors:
· High number of firms – Strong
· High aggressiveness of firms – Strong
· Low switching costs – Strong
Bargaining power of buyers or customers
In McDonald’s case, the following are the external factors that contribute to the strong bargaining power
of buyers:
· Large number of providers – Strong
· High availability of substitutes – Strong
The ease of changing from one restaurant to another (low switching costs) enables consumers to easily
impose their demands on McDonald’s. In the Five Forces analysis model, this external factor strengthens
the bargaining power of customers. In relation, because of market saturation, consumers can choose from
many fast food restaurants other than McDonald’s. This condition makes the bargaining power of buyers a
strong force in affecting the company’s external environment. Moreover, the availability of substitutes is
relevant in this external analysis. In this case, the availability of many substitutes adds to the bargaining
power of the customers.
Bargaining power of suppliers

Suppliers influence McDonald’s in terms of the company’s production capacity based on the availability of
raw materials. This element of the Five Forces analysis model shows the impact of suppliers on firms and
the fast food restaurant industry environment. In McDonald’s case, the weak bargaining power of suppliers
is based on the following external factors:
· Large number of suppliers – Weak
· Low forward vertical integration of suppliers – Weak
· High overall supply – Weak
The large population of suppliers weakens the effect of individual suppliers on McDonald’s Corporation.
This weakness is partly based on the lack of strong regional and global alliances among suppliers. In
relation, most of McDonald’s suppliers are not vertically integrated. This means that they do not control the
distribution network that transports their products to firms like McDonald’s.
Threat of substitutes or substitution
Substitutes are a significant concern for McDonald’s Corporation. This element of Porter’s Five Forces
analysis model deals with the potential effects of substitutes on firm growth. In McDonald’s case, the
following external factors make the threat of substitution a strong force:
· High substitute availability – Strong Force
· High performance-to-cost ratio of substitutes – Strong
There are many substitutes to McDonald’s products, such as products from artisanal food producers and
local bakeries. Also, consumers can cook their food at home. In the Five Forces analysis model, this
external factor contributes to the strength of the threat of substitution in the fast food service industry. In
addition, it is easy to shift from McDonald’s to substitutes because of the low switching costs. For
example, shifting from the company to substitutes typically involves insignificant or minimal
disadvantages, such as slightly higher costs per meal in some cases, or additional time consumption for
food preparation.
Threat of new entrants or new entry
New entrants can impact McDonald’s market share and financial performance. This element of the Five
Forces analysis refers to the effects of new players on existing firms. In McDonald’s case, the moderate
threat of new entry is based on the following external factors:
· Highly variable capital cost – Moderate

· High cost of brand development – Weak
The low switching costs allow consumers to easily move from McDonald’s toward new fast food restaurant
companies. In Porter’s Five Forces analysis model, this external factor strengthens the threat of new
entrants. Also, variable capital costs of establishing a new restaurant empowers new businesses to enter the
global fast food restaurant industry. For example, small restaurant businesses involve low capital costs
compared to major corporations in the market. This external factor leads to the moderate threat of new
entry against McDonald’s. On the other hand, it is expensive to build a strong brand in the industry. Many
small and medium businesses lack the resources to create a strong brand to match the McDonald’s brand.
6)ANSOFF MATRIX
Growing a business is the process of improving some measure of a comany’s success. A business can grow
in terms of employees, customer base, international coverage, profits, but growth is most often determined
in terms of revenues. There are different ways of growing a business. Igor Ansoff identified four strategies
for growth and summarized them in the so called Ansoff Matrix. The Ansoff Matrix (also known as the
Product/Market Expansion Grid) allows managers to quickly summarize these potential growth strategies
and compare them to the risk associated with each one. The idea is that each time you move into a new
quadrant (horizontally or vertically), risk increases. Each quadrant of the Ansoff Matrix will be elaborated
on below.
Market Penetration: Existing Products in Existing Markets
Market Penetration is about selling more of the company’s existing products to existing markets. To penetrate
and grow the customer base in the existing market, a company may cut prices, improve its distribution
network, invest more in marketing and increase existing production capacity. Brands such as Coca-Cola and
Heineken are known for spending a lot on marketing in order to penetrate their markets. In addition, they try
to maximize the use of distribution channels by making attractive deals with a large variety of distributors
such as supermarkets, restaurants, bars and football stadiums for example.
Product Development: New Products in Existing Markets
Product Development is about developing and selling new products to existing markets. Companies could
for example make some modifications in the existing products to give increased value to the customers for
their purchase or develop and launch new products alongside a company’s existing product offering. A
classic example of product development is Apple launching a brand new iPhone every few years. Other
examples can be found in the pharmaceutical industry where companies such as Pfizer, Merck and Bayer are
heavily investing in Research and Development (R&D) in order to come up with new and innovative drugs
every now and then.
Market Development: Existing Products in New Markets
Market Development is about selling more of the company’s existing products to new markets. This strategy
is about reaching new customer segments or expanding internationally by targeting new geographic areas.
IKEA started off expanding to markets relatively close in terms of culture as to its home country (Sweden)
before targeting more challenging geographic areas such as China and the Middle-East company’s product
is doing exceptionally well in one market, why not try to enter a new market with the same products? This
is what for example IKEA has done over the past few decades in order to become one of the biggest furniture
retailers in the world.
Diversification: New Products in New Markets
Diversification strategies are about entering new markets with new products that are either related or
completely unrelated to a company’s existing offering. Diversification in turn can be classified into three
types of diversification strategies. Concentric/horizontal diversification (or related diversification) is about
entering a new market with a new product that is somewhat related to a company’s existing product offering.
Conglomerate diversification (or unrelated diversifcation) on the other hand is about entering a new market
with a new product that is completely unrelated to a company’s existing offering. A great example of a
conglomerate is Samsung, which is operating in businesses varying from computers, phones and refrigerators
to chemicals, insurances and hotel chains. Finally. vertical diversification (or vertical integration) means
moving backward or forward in the value chain by taking control over activities that used to be outsourced
to third parties like suppliers, OEMs or distributors.
7)BCG MATRIX
The Boston Consulting Group developed a matrix for assessing the product lines of a company, called the
BCG Matrix.
BCG matrix (also referred to as Growth-Share Matrix) is a portfolio planning model which is based on the
observation that a company’s business units can be classified into four categories:
Cash Cows
Stars
Question Marks
Dogs
It is based on the combination of market growth and market share relative to the next best competitor.
Stars
High Growth, High Market Share
Star units are leaders in the category. Products located in this quadrant are attractive as they are located in a
robust category and these products are highly competitive in the category.
Question Marks
High Growth, Low Market Share
Like the name suggests, the future potential of these products is doubtful. Since the growth rate is high
here, with the right strategies and investments, they can become Cash cows and ultimately Stars. But they
have low market share so wrong investments can downgrade them to Dogs even after lots of investment.
Cash Cows
Low Growth, High Market Share
These products or services generate interesting profits and cash but need to be replaced because the future
growth will be lower. If they are profitable, they can finance other activities in progress (including stars and
question marks).
Dogs
Low Growth, Low Market Share
Dogs hold low market share compared to competitors. Neither do they generate cash nor do they require
huge cash. In general, they are not worth investing in because they generate low or negative cash returns
and may require large sums of money to support. Due to low market share, these products face cost
disadvantages.
Amul brand is a prominent and popular name in the dairy industry in India. It produces milk, butter, and other
dairy-related products and successfully caters to the Indian population. The BCG matrix for Amul is as follows:
1 Stars
The products which are considered as Stars of Amul are Amul Ice cream and Amul Ghee. These two
products have a high market share and have adequate possibilities to grow in the near future. Amul Ghee
has also been a Star for the company as the brand has been able to acquire a 30% hike in its sales while the
market share clinged by the product is around 18% along with a yearly turnover of more than Rs 1,700
Crores.
2. Question Mark
Amul Lassi is diagnosed as a Question Mark as their capability as a major derivation of profitability
remains quite bleak. Amul lassi has been brought about in the market with the agenda to magnify the
market share and give a tough competition with the other beverages available in the market. The healthy
milk from Amul possesses a huge potential to swell in the future considering the expansion of interest and
demand for healthy products, refreshments, and beverages.
3. Cash Cows
There are three products under the umbrella of Amul that come under the Cash Cow category and they are Amul
Milk, Amul Butter, and Amul Cheese. The market share of these products is not likely to undergo colossal gains but
their current spot makes them a high revenue contributor.
4. Dogs
Amul has two products that have not been able to generate sales and revenues as per the estimation. One of
the noteworthy examples in this regard is Amul Chocolates and Amul Pizza. The competitors make it
tough to amplify the market shares to a notable degree which can turn this product to become an
outstanding source of sustainable revenues. However, if the sales figures do not proceed towards
betterment, a probable measure would be to take the path of divestment of the above-mentioned brands.
8)PRODUCT LIFCYCLE
The product life-cycle (PLC) refers to the different stages a product goes through from introduction to
withdrawal.
The product life-cycle refers to a likely pathway a product may take. It has implications for the marketing
strategy of a firm as it seeks to introduce, grow and maintain market share.
The product has four stages:
1. Introduction – when the product is introduced and struggles to gain brand recognition.
2. Growth – advertising and word of mouth helps the product to increase sales. As sales growth, more
firms are willing to stock the product which helps the product to grow even further.
3. Maturity – When the product reaches peak market penetration.
4. Decline – the product gets eclipsed by new products
Product life cycle (Maruti 800)
First vehicle launched in December 1983.
Growth (1987-1996)
Decline (2002 onwards)

9)STDP
Segmentation, Targeting, Differentiation, Positioning
Income groups classifications (as per World Bank data):
Lower – Less than ₹70069
Lower Middle - ₹70137-₹273098
Upper Middle - ₹273167-₹845955
High – more than ₹846023
Volkswagen Mass market , Young Focusing on large Premium,

Vento demographic executives, market, upper & Innovative brand,
segmentation- businessman, higher class, Made Safety leader,
Age urban family, in India Biggest
linkedin’s Programme,vehicle Automobile grand
broad reach safety, fuel , experiential
efficiency , “ when positioning
power meets plays”
Mercedes Income Seg Targeted On road service, TAGLINE “ The

Benz C-Class higher class people aging panoramic sunroof, Best or Nothing “
affordibility between 30-45 concentration alert
years
Maruti Dzire Geographic Targeted Highly fuel efficient, Tagline “ Desire

Segmentation people living technologically Again “ It not
in semi urban advanced K series only encourages
& urban areas engines consumers to
think
Honda City It tries to cater Distinctive Tagline “ The power

luxury & image due to of dreams “
premium strong brand, Capability of
consumers in unique dreaming, imagining
& innovate
semi urban & comfort &
urban areas safety
10)MARKET CHALLENGER, FOLLOWER NICHER

MARKET CHALLENGER:
Frontal: Coke vs. Pepsi
Flank: Bata vs. Woodland
Encirclement: Royal Enfield vs. Bajaj Dominar
Bypass: Pepsi and Coke by launching mineral water products
Guerilla warfare: Pepsi and Coke, Dunkin Donuts
MARKET LEADER:
Adding new users/segments: Fair and Handsome,
More frequent usage: Pepsodent
Discover new users: Good night fast card
Flanking defense: Maggi atta noodles
Preemptive defense: ITC venturing into hotels
MARKET NICHER:
End Use specialist: Sabyasachi
Vertical level specialist: GoDaddy website creation
Customer size specialist: ALL for plus size customers
Event Specialist: WedMeGood
MARKET FOLLOWER:
Adapter: Cars like Maruti 800,Alto, Zen, brio.
revolution to India but was soon imitated by Videocon, Airtel, Reliance
Cloning: If you get watches made from Rado, or bags of Gucci
Counterfeiter: Similarly, you can find shoes from Reebok and Adidas
11)CONSUMER BEHAVIOUR
Problem Recognition: The customer must have a reason to believe what they want, where they want or
how they perceive themselves
E.g: A customer is looking to buy a laptop with the highest specifications and graphics.
Information Search: Public, Personal, Commercial or Experimental Trials
E.g: The customer may start searching online across various shopping websites also might have a look at
showrooms to gather information.
Evaluation of alternatives: Customers want to ensure that they have done enough research prior to
making the purchase.
E.g: Customer will now compare all the alternatives which are available based on requirements and
affordability.
Purchase decision: After exploring alternatives they are deciding whether to move forward with the
purchase or not.
E.g. After examining the alternatives the customer has decided to buy a laptop that suits his/her needs.
Purchase: Tell your brands purchase process are there too many steps? Is it complicated?
E.g.: The purchase process is simple/complicated what the available payment options are, is the option of
EMI available.
Post purchase evaluation: Associated with consumer satisfaction.
E.g: How satisfied is the customer with the product and service
12) PROMOTION AND INSIGHTS
S Advertise Insights
r ment
.
N
o
1 Liril Soap The insight is that earlier women used to egt time only while bathing,
therefore ad showed it and she forgets all her tension
2 Idea - Idea was restricted to only a certain area, after reaching pan India,
the perception issue was idea became a national network
Honey
Bunny
3 Airtel It was one of the top most companies, therefore to grow telecomm
was not the only way forward. They came up with data sharing
which focused on youth - “Jo tera hai woh mera hai”
4 ICICI - There was a time where they used to celebrate Women, but nothing
for men even after their selfless service and care.
“Bande
achhe Thus, “Jo zimmedari nibhate hein, vo jjattate nahi hai”
hein”
5 Coca-Cola Out of the 4 P’s, place is what Coca-Cola chose - “Thanda matlab
Coca-Cola” | Hyderabad - Distribution through paanwala, because
highest penetration
13)PRICING STRATEGIES
Premium pricing
Premium pricing, also called image pricing or prestige pricing, is a pricing strategy of marking the price of
the product higher than the industry standards/competitors’ products. The idea is to encourage a perception
among the buyers that the product has a more utility or a higher value when compared to competitors’
products just because it is sold at a premium price.
Branded unleaded petrol is sold at a higher price than regular unleaded petrol. The consumer never gets to
test if the branded is better, yet he buys the branded offering thinking if it’s expensive, it must be better.
Penetration Pricing
Penetration pricing is a pricing strategy where the price of the product is initially kept lower than the
competitors’ products to gain most of the market share and to trigger word of mouth marketing. Even
though this strategy leads to losses initially, it results in many customers shifting to the brand because of
the low prices. Once these customers become loyal and the brand achieves a strong market penetration,
marketers increase the prices to a point where they get optimum profits without 0much loss of customers.
affordable price of 17000. Once the company acquired a good market share, it started launching its
products at a premium. The recent phones from Oneplus are priced in the range of Rs. 15000-17000.
Economy Pricing
Economy pricing is a no-frills pricing strategy followed by generic food suppliers and discount retailers
where they keep the prices of the product minimal by reducing the expenditure on marketing and
promotion. This strategy is used essentially to att The key to success using economy pricing strategy is to
sell a large volume of product and services at low prices. The strategy is most suited to big businesses like
Walmart.
Dmart uses this no-frills economy pricing strategy where it operates small stores, only sells products which
have a good demand, keep products in their original shipping containers, and even charges the customers if
they ask for carry-bags.
Price Skimming
Price Skimming is a strategy of setting a relatively high introductory price of the product when the product
is new and unique and the market has fewer competitors. The idea is to maximise the profits on early
adopters before competitors enter the market and make the product more price sensitive. ract most price-
conscious consumers.
Smartphones (both iPhones and Android) are introduced in the market at a higher price, but the price is
reduced as the time passes.
Psychological Pricing
Psychological pricing refers to the psychological pricing strategies marketers use to make customers buy
the products, triggered by emotions rather than logic. Such strategies come in the form of:
Charm Pricing: This involves reducing the price by a minimal amount (say 1 cent) which makes the
customer perceive the price to be less. For example – the price of a $3 product is set as $2.99 in
supermarkets as customers’ brains process $2.99 to be nearer to $2 and not $3.
Prestige Pricing: This involves rounding off and setting a higher price for premium and exclusive products
as rounded figures are easily processed and are preferred in such cases.
Bundle Pricing
Bundle pricing involves selling packages or set of goods or services at lower prices than they would have
actually cost if sold separately. This is an effective strategy to bundle unsold products or products with less
demand with the high selling products to clear up the shelf space and to increase the profits.
Bundling works wonders when two complementary products are bundled together.
Bundle Pricing Example
Mcdonald’s happy meal is a perfect example of bundle pricing.
Predatory Pricing
Predatory pricing, or below the cost pricing, is an aggressive pricing strategy of setting the prices low to a
point where the offering is not even profitable, just in an attempt to eliminate the competition and get the
most market share.
An ongoing price war among the competitors may lead to one adopting a predatory pricing strategy to
make the competitor exit the arena.
A perfect example of a company adopting a predatory pricing strategy is Amazon which, in 2013, offered
books at a price less than the cost price and even shipped it for free just to win over the traditional brick-
and-mortar competitors
.
Kritika Mansharamani
Roll No 93
1) Consumer & Customer
The buyer of the product is the customer, say a mother goes to the diary to purchase milk for her son. Her
son is the user of the product hence the consumer.
2) New Product Development
Idea generation – Airbnb was formed by an internal idea that came to founders Joe Gebbia, Brian Chesky
and Nathan Blecharczyk.
Idea screening – They had to then figure out the feasibility of the service and managed to correctly analyze
that people in San Francisco couldn’t afford to pay rent and there were lack of cost-effective hotel rooms
which meant people looking for other options.
Concept Development and Testing – They decided to work on a roommate matching service but realized
that something like roommates.com already existed and hence had to drop that idea. They went back to
their original concept of providing a sleeping mat with breakfast by launching for the second time and
tested it by turning their loft into an area that could fit three mattresses.
Business Analysis – They went ahead to understand the investment, demand, expenses and profit involved
through various angle investors and VC’s.
Product Development – They launched airbedandbreakfast.com and got their first clients, two men and one
woman.
Market Testing – They finished the final version of Air Bed and Breakfast and launched for the third time.
They also visited all their hosts in New York to personally stay with them, write reviews and professionally
photograph their place and then went to meet investors
Commercialization – They finally picked the name Airbnb and received seed capital from Sequoia Capital.
From starting in California, they then went to expand to 89 countries and hit 1mn nights booked through
their platform.
Premium Pricing – Hermes bags require highbrow craftsmanship and attention to detail hence have a high
price due to their uniqueness.
Economy Pricing – Samsung galaxy phones are available under 10k and offer basic features of a smart
phone using no-frills low-price strategy.
Psychology Pricing - The marketer wants customer to respond emotionally than rationally hence prices his
goods ending with 99 like 1099, 799 etc
Bundle Pricing - Amazon bundles its Prime Streaming Services with Prime Membership at INR 999 to
offer a complete package.
Captive Pricing – Gillette charges a premium price to its customers once they are captured such as Venus
razor is for INR 195 but its blade refills cost INR 500.
Bait Pricing - A company advertises its product by underquoting the price to attract buyers but when
customers actually come, they are encouraged to buy a similar item at a high cost mentioning that the
original item got sold out like Lodha does in residential apartments.
Price Lining - Apple offers a line of products which are similar in most ways with little difference in
features such as MacBook Pro is priced at INR 1.12L and MacBook Air is priced at INR 68k.
Promotional Pricing – BOGO (Buy One Get One Free), discounts, coupon codes are all examples of
promotional pricing strategies especially followed by e-commerce companies such as Koovs or Shein.
Predatory Pricing - It is followed with the intention to wipe out competition such as Jio stormed the
telecom industry with free data and voice.
Dynamic Pricing - It refers to setting flexible prices based on market demand and supply. How Ola / Uber
surge their rates during peak hours / heavy rains.
4) 3 tier distribution channel of Mufti men’s clothing wear –
Tier Margins Number
Manufacturing (Outsourced) 495 + 11.12% = 550 4
Mufti 550 X 4.5 = 2475 approx

= 2499 (MRP) -
Distributor 15% X 2499 = 374.85 15
Retailer 33% X 2499 = 824.67 1400
Consumer 2499
Distribution Strategies –
Intensive – Coca Cola’s coke aims to provide saturation coverage and is available everywhere from Kirana
stores to 5-star hotels.
Selective – Used when customers have come prepared to shop around and will search for the outlets that
supply their preference like Future Group’s Foodhall.
Exclusive - It is an extreme form of selective distribution used for brands that seek high prestige value like
a LV store.
5) Promotion and Insights
Consumer Insights Campaign
People were unaware that ABRL’s Idea Honey Bunny TVC to break the myth
had got a PAN India license to operate that they’re still a local network
Only time a housewife was alone and Liril Waterfall ad

free of responsibilities in a joint family
system was when she was in shower
Data was becoming the new oil and Airtel’s Har Ek Friend Zaroori Hota
Indian youth were to be the largest Hain and Joh Tera Hain Woh Mera
segment to use it Hain
Men tend to be forgetful but are selfless ICICI’s Bade Ache Hain
and do not take credit for the good
things they do
People used ice and salt to keep cold Coco Cola’s Thanda Matlab Coca Cola
drinks cool in rural India and most often where they hired Aamir Khan as the
the drink was not cold when guests brand ambassador
came home
6) STPD
HUL’s Lakme -
Segmenting –
Demographic – Looking at women aged 16 – 42 as their cohort with high disposable income
Geographic – Looking at urban India and particularly metro cities
Psychographic – Looking to be established as a brand of premium standard
Behavioral – Coming up with its 9 to 5 range of makeup post realizing that working women are looking to
have long lasting making
Targeting -
Using Multi-segment targeting with its two ranges, Lakme Absolut and Lakm Radiance. The former
targeting the upper middle class and middle-aged women while the latter targeting the youth and people
looking for skin lightening / brightening.
Positioning –
Having an icon such as Karena Kapoor as their brand ambassador to establish themselves as a prestigious
brand delivering quality and trendy products and services
Differentiation –
Providing the customer, a holistic beauty experience not just with its makeup range but also through their
Lakme chain of salon’s and being the title sponsor of the famous fashion week – LFW.
7) BCG Matrix
How Starbucks manages the portfolio of its SBU’s -
Question Mark - Starbucks is building on its food segment which contributes 18% to its revenue
Star – It is holding on to its retail business of merchandise such as tumblers, mugs, diaries etc which
account for 14% of its revenue.
Cash Cow – Its cash cow is its beverage business which it is harvesting. It is best known for coffee which
contributed 60% to its revenue.
Dog – Its packaged coffee is its dogs which it can look to divest as it contributes only 8% to its bottom line.
8) Ansoff Matrix
How Starbucks focuses on its growth strategy –
Product Development – Starbucks is looking to micro-localize its food to develop its business such as
offering Chomchom Tiramisu and Chocolate Rossomalai mouse in Calcutta and Chatpata paratha and
Kathi Wrap in Mumbai.
Diversification – It is diversifying into a completely new product line of retail merchandize through its
branded cups, tote bags etc.
Market Penetration – It is looking to provide a great coffee experience to its users by handcrafting its stores
such as having an expressor and brew bar with customized shots being available at its new Bangalore
outlets. The store design and live baristas are another added feauture.
Market Development – It is looking to expand to tier II cities with a population of less than 5mn.
9) Porters 5 Forces
Starbucks in the dine-in coffee segment –
Competitive Rivalry – High
There are not just many other premium coffee shops such as Coffee by Di Bella, Blue Tokai and KC
Roasters but various restaurants also offer great coffee such as Jamjar Diner, Socials etc
Threat of New Entrants – High
There are very weak barriers to enter and a new player can easily enter through the FDI route with 51%
stake. Raw material and labor are also available easily. Sustainability is tough on account of high real estate
costs hence Costa Coffee had to retrieve.
Threat of Substitutes – High
Ready-to-drink coffee offered by players like Sleepy Owl, Nescafe etc are major substitutes compared to
dine-in / take-away coffee. A lot of retail chains also offer tea along with coffee such as Coffe by Di Bella
and some who only offer varieties of tea such as Chayyos, Tea Trails, Tea Villa etc. There are also various
energy drinks which act as substitutes to caffeine such as Red Bull and Gatorade.
Bargaining Power of Suppliers – Low
With the government having limitations on the price of products such as coffee and milk, bargaining power
of suppliers is low. They also do not form cartels. Most chains now are also following backward
integration and brewing their own coffee.
Bargaining Power of Buyers – High
With so many options being available in the market with such low switching costs, bargaining power of
customers is high. Starbucks needs to create loyalists.
10) Product Life Cycle
Indian Radio -
Introduction –
With no other means of entertainment in India, Indian State Broadcasting service came up with a basic
voice service through frequency modulation called radio. Since it was a government service, it was free but
only available in Calcutta, then Madras then Bombay with no promotion.
Growth – From 1936 to 1980, when it was renamed to All India Radio was its growth stage where they
played back to back hit songs and focused their energies on broadcasting documentaries, news analysis,
sports and culture. It was made available PAN India with some dependency on advertising for survival.
Maturity – With the advent of TV in the 1990’s, AIR fiddled with the Doordarshan inspired sponsored-
program formats for its metro stations instead of having a clear offering for urban listeners. It never quite
decided whether it wanted to offer unique and differentiated radio using its humongous budgets or play hit
film songs in order to sell toothpaste.
Decline – It brought in private players such as Times FM (now Radio Mirchi) and Radio Mid Day (now
Radio One) to operate hourly slots. The first private 24-hour FM station appeared in India in 2002, years
after major TV players were operating here with minimal restrictions. Till now private FM stations cannot
broadcast news though the Indian audiences have access to hundreds of online and TV news services.
Government uses the policy of protectionism.
11) Consumer Behavior
CBB Process -
Need Recognition
This can occur due to an internal stimuli such as one’s own need or external stimuli such as sales /
advertising. One may decide to purchase an iPhone due to either.
Information Search
By looking at personal sources such as friends and family, public sources such as online reviews,
commercial sources such as outdoor media and experimental sources such as trying out the interface of
another’s iPhone, one may find out more about the product.
Evaluation of Alternatives
In the premium phone segment category, one may also compare prices and features with other competing
brands such as OnePlus, Samsung, Oppo etc.
Purchase / Purchase Decision
This is influenced by one’s attitudes and one’s situation at that time. He / she may impulsively buy an
iPhone as the current phone is giving major problems or may buy the iPhone post thorough analysis after
forming a positive attitude from the above steps.
Post Purchase Behavior
The individual may be satisfied and experience delight or may be dissatisfied and experience cognitive
dissonance thinking that was it really worth buying the product at the cost asked.
Roles Played by the Buyer while planning a business trip –
Initiator
The eldest son of the family may suggest his dad to opt for an Oyo room for a night’s trip than spend on a
5-star hotel.
Influencer
The dad’s business partner may be somebody trustworthy whose knowledge can influence the decision.
Decider
The father may finally decide to opt for the same since the partner gave a positive reply.
Buyer
The buyer can be his son again who books a Oyo room for his dad online.
User
The dad is the user who finally stays there for a night and utilizes the services.
12) Product Line Extensions
Product Mix – All products offered by the company Kelloggs’s.
Width – The number of different product lines as is 7 in the above case.
Length – The total number of items in the product line. Special K (3) + Oats (2) + Muesli (4) + Granola (1)
+ All Bran (1) + Chocos (7) + Cornflakes (4), hence total = 22
Depth – Under each variant, the sizes offered are of 4 types.
Consistency – All product mixes are inter-related; they are breakfast cereals.
13) Marketing Strategies

Market Leaders –
Expand the total market strategy –
ICICI Bank, for instance, entered into rural banking and agri business financing when it felt the heat of
competition in the overcrowded and super-saturated urban market. Maruti Udyog started True Value car
division—used cars certified by Maruti engineers—to expand their market in the rural and urban markets
well.
Defense –
Position Defense - “Goodnight” consolidating its position in the mosquito repellent segment;
Gillette(P&G)- Venus, Park -3, shaving creams gels etc to cover all the areas; Samsung Guru to Samsung
Galaxy- consolidated market share in every segment when it was the market leader.
Flanking Defense - Maggi introduced “Atta noodles” to take on the healthy factor as people had a
misconception that healthy food is not tasty. Therefore it came up with the tag line- “ Taste bhi, health
bhi.” So that the taste factor is not compromised.
Pre-emptive Defense - Coca Cola laughing “Diet coke” to cater to the health conscious consumers. ITC
venturing into hotels, retail, packaging incase their core revenue generator- cigarettes is affected by the
government laws.
Mobile Defense - Facebook’s acquisition of WhatsApp and Instagram - Reliance Industries Limited
venturing into retail, Jio, etc from initial petrochemical business - Aditya Birla group: textile to retail.
Counter Offensive Defense - Hindu being the market leader in Chennai did a counter offensive attack on
Times of India which was the overall market leader in India through a bold advertisement. When Ceat tyres
attacked TVS Srichakra in Tamil Nadu markets, TVS decided to expand its coverage to Ceat tyre’s hub in
the north and west of India through innovative campaigns like road rallies, road shows and attractive public
campaigns.
Contraction Defense - Unilever has 465+ product brands worldwide in its portfolio after which they
disinvested from the rest and focused only on 33 power brands. After 2004, they opted for contraction
defense. Pepsi withdrew “Atom” as it was rejected by the customers and hence was non- profitable for the
company. The cinnamon cola taste of Atom did not meet the expectation of the Indian consumer.
Defending the Market Share - Coca-Cola must constantly maintain its guard against Pepsi-Cola. Similarly,
Hero Honda should constantly maintain its guard against Bajaj, Honda, Suzuki and TVS in the two-
wheeler market. In this strategy, the leader firm must keep its costs down, and its price must be consistent
with the value that customers see in the product.
Expanding the Market Share – Market share building - Frooti was introduced in triangular packaging for
extensive distribution. Gillette used product innovation by launching “Venus”.
Market share maintenance - HUL launching Pure It is an example of market fortification and confrontation
strategy is adopted by Jio.
Market Share Reduction - PR: HUL emphasising on building a purpose- Wheel: Gender and equality.
Market Challengers –
Frontal Attack - McDonald's McCafé offerings could be considered a type of frontal attack strategy in
marketing because the fast-food restaurant, not typically known for its coffee beverages, created a line
designed to compete directly with coffeehouses like Starbucks, Dunkin' Donuts, and Tim Hortons. By
crafting premium coffee drinks without the premium price tag, McDonald's launched a frontal attack on the
market leaders designed to move customers from the coffeehouse to the drive-thru line.
Flank Attack - LG outflanked the other colored TV producers in India, by launching a rural-specific color
TV “Sampoorna”, thereby becoming the first one to tap the rural areas.
Encirclement Attack – The c-commerce industry uses this as a war strategy to attack the competitor on all
major fronts such as Amazon and Flipkart.
Bypass Attack - Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well
Guerrilla attack - The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass
each other. When the Coca-Cola was the official partner of the world cup, the Pepsi counter-attacked it by
using the punch line “Nothing official about it”.
Market Nichers –
Vertical Level Specialist - Voylla- Indian fashion jewelry portal is a niche brand that focuses only on the
sale of earrings.
Customer Size Specialist – “All” the plus size store” is a brand that sells products only for plus size
customers. The starting size in this store is “XL” extending up to “6XL”.
Geographic Specialist- Meera shampoo of CavinKare only sold in south India.
Product Line Specialist- HealthKart, an e-commerce company is a one stop solution for all health and
nutrition supplements.
Customer Specialist - A store called “Left-hand store” creates products which are convenient to use for a
left- handed consumer.
Market Followers –
Adaptors - Automobiles use the adaptation form of market follower strategy. Cars like Maruti 800, Alto,
Zen, brio, etc are all adapters and they adapt the best qualities from each other by changing the style of the
automobile. Similarly, there are technology adapters like the Dell laptop and Sony Vaio laptop. These
market followers have similar products but they try to adapt from their closest competition. Adapters can
soon become leaders as well because they can adapt, learn and make a better product than the higher
competition.
Imitators - The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution
Cloning - However, if you get watches made from Rado, or bags of Gucci, with Rado spelled as RADA
and Gucci spelled as GUCCA, then that’s cloning. Cloning means making the same product as yours, but
with very subtle difference. Cloning makes advantage of the top brands and makes same to same products.
Counterfeits - Copying of the entire brand name and selling a fake product. Eg- Kylie Jenner lip kits are
sold by the same name and they consist of fake products priced at lower rates
Kunal Deshmukh
PG-2 (76)
● A customer is a person or company that receives, consumes or buys a product or service and can
choose between different goods available in the market.
● A consumer is one that buys good for consumption and not for resale and commercial purpose. The
consumer is an individual who pays some amount of money or the thing required to consume goods and
services.
● Example: For a products like Children’s Toy (Barbie by Mattel) is bought by the parents of the kids
who are the customers but the consumers are the kids who play with the toys.
DISTRIBUTION
● Zero Level Channel – Manufacturer To Consumer
● Example : E- business (Amazon selling various products)
● One Tier Channel -- Manufacturer To Retailer To Consumer
● Example : Avon selling cosmetic products through retailers.

● Two Tier Channel -- Manufacturer To Distributor/Agent To Retailer To Consumer
● Example : Mobile phone brand Redmi by Xiaomi.
● Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer To Consumer
● Example : The products sold by Nestlé.
● PROBLEM RECOGNITION
o A person see’s a commercial for a new pair of jeans, stimulates his/her recognition that they need a
new pair of jeans.
● INFORMATION SEARCH
● A successful information search leaves a buyer with possible alternatives, the evoked set.
● For the search of new pair of jeans, the person would do external search like ask a few friends, do a
Google search for places to shop etc.
● EVALUATION OF ALTERNATIVE
● PURCHASE DECISION
● Final Decision on which place (shop) as well as which type jean is decided and the purchase is
made.
● POST PURCHASE EVALUATION
o Evaluation if the pair of jeans chosen was actually the right choice and would you go back to the
store for repeat purchase.
● Threat of Rivalry: The number of competitors in the industry in which Reliance Industries operates
are very few. Most of these are also large in size. This means that firms in the industry will not make
moves without being unnoticed. This makes the rivalry among existing firms a weaker force within the
industry. The fixed costs are high within the industry in which Reliance Industries operates. This makes the
companies within the industry to push to full capacity. This also means these companies to reduce their
prices when demand slackens. This makes the rivalry among existing firms a stronger force within the
industry. The exit barriers within the industry are particularly high due to high investment required in
capital and assets to operate. The exit barriers are also high due to government regulations and restrictions.
This makes firms within the industry reluctant to leave the business, and these continue to produce even at
low profits. This makes the rivalry among existing firms a stronger force within the industry.
● Threat of New Entrants: The product differentiation is strong within the industry, where firms in the
industry sell differentiated products rather a standardised product. Customers also look for differentiated
products. There is a strong emphasis on advertising and customer services as well. All of these factors
make the threat of new entrants a weak force within this industry. The capital requirements within the
industry are high, therefore, making it difficult for new entrants to set up businesses as high expenditures
need to be incurred. Capital expenditure is also high because of high Research and Development costs. All
of these factors make the threat of new entrants a weaker force within this industry.
● Threat of substitutes: There are very few substitutes available for the products that are produced in
the industry in which Reliance Industries operates. The very few substitutes that are available are also
produced by low profit earning industries. This means that there is no ceiling on the maximum profit that
firms can earn in the industry in which Reliance Industries operates. All of these factors make the threat of
substitute products a weaker force within the industry.The very few substitutes available are of high quality
but are way more expensive. Comparatively, firms producing within the industry in which Reliance
Industries operates sell at a lower price than substitutes, with adequate quality. This means that buyers are
less likely to switch to substitute products. This means that the threat of substitute products is weak within
the industry.
● Bargaining Power of Suppliers: The number of suppliers in the industry in which Reliance
Industries operates is a lot compared to the buyers. This means that the suppliers have less control over
prices and this makes the bargaining power of suppliers a weak force.The product that these suppliers
provide are fairly standardised, less differentiated and have low switching costs. This makes it easier for
buyers like Reliance Industries to switch suppliers. This makes the bargaining power of suppliers a weaker
force.
● Bargaining Power of Buyers: The number of suppliers in the industry in which Reliance Industries
operates is a lot more than the number of firms producing the products. This means that the buyers have a
few firms to choose from, and therefore, do not have much control over prices. This makes the bargaining
power of buyers a weaker force within the industry. The product differentiation within the industry is high,
which means that the buyers are not able to find alternative firms producing a particular product. This
difficulty in switching makes the bargaining power of buyers a weaker force within the industry.
Pricing Strategies
1) Skimming
● Apple’s mobile phones are priced higher than Samsung, Xiaomi (Read in Skiming)
● Chocolates like Bournville, Dairy Milk silk priced higher
● Signature collection in Automobiles like Rolls Royce
2) Penetration
● Smart Phones : The two major suppliers of smart phones, Samsung and Apple, follow markedly
different pricing strategies. Apple uses a skimming pricing strategy, and has been able to establish a strong
brand loyalty with its customers. This strategy keeps prices high and never drops or offers any discounts.
Apple customers are convinced that its products are high quality, and each new phone model comes with
more exciting features. And people are willing to pay the steep prices. On the other hand, Samsung is
continuously offering Android phones at introductory prices and discounts, hoping to build brand loyalty.
Samsung also partners with cell-phone companies to provide Android phones at cheap prices in exchange
for commitments to long-term contracts. Consumers get enticed by the low prices and overlook the cost of
the terms of the contract.
Apple sell expensive phones to a small market, while Samsung sells a high volume of phones to a broader
consumer base.
● A combination of rich product assortment and making it available at everyday low price (EDLP) is
DMART’s winning formula in value retailing. For EDLP, the company focuses on everyday low cost
(EDLC)
● Big Bazaar
4) Surge Pricing
● Higher price of Travels services or bus services/Flight services on days near festive seasons
● Apparel industry during peak season like and fbb or a a shopping mall
5) Discount Pricing
● Customer Value Discounts - A 15%-off coupon for first-time customers to get them interested such
as a ZOMATO or Google pay offering Cashnack
● Seasonal Discounts – Independence day, Diwali Sales, Christmas Blast
● Bundle Discounts – Buy one get one free
● L’Oreal is a great example, providing the public with three different segments at different prices.
They have positioned themselves in the luxury market, professional market, and consumer market,
allowing open purchasing throughout. They give consumers the option to buy Kiehl’s Shampoo for
Rs.2500, Redken for Rs.1500 or Garnier for Rs.300.
● Artificial Time Constraints on E commerce saying HURRY UP, ONLY 3 LEFT
● Charm Pricing : 999 is better than 1000
● Innumeracy - “Buy one get one free” or “50% off a two items?” Both are the same deal but research
has shown that most people would prefer the first option, even though the two options are identical. This
phenomenon is known as innumeracy
● Price Appearance : Higher price , higher quality (Apple phones)
7) Loss Leadership
● HP printers. HP may sell printing machines free of cost. Seeing this offer everybody will rush to the
markets and get the machine. But in order to make printing machine work, customers need to buy
cartridges which are sold separately at such higher prices that even compensates for the loss of selling
printing machines for free.
● One popular example of this is a razor with disposable blades. Often, a store will price the razor
very low, but armed with the knowledge that the consumers with need to purchase new blades, refill sets
are over-priced to increase profits
● Patanjali Ayurved – To penetrate in the market
● Maruti Suzuki Cars – New Market segment where customer switching from 2 to 4 wheeler
● Mercedes India – Geographical Expansion where Benz targets Tier 2 and 3 cities
● Cadbury Dairy Milk instead of just birthday celebrations, using taglines PAPPU PASS HOGYA
and SHUBH ARAMBH to expand
● Position Defence : Parle G, Gillete Razor, Dettol Hygiene (Superior brand power makes them
impregnable)
● Flank Defense : Nestle India rolling put 2 minute Maggie noodles to appeal to young people under
the brand hot heads
● Pre-emptive defense : Ola introducing Ola shuttle service to outsmart Uber i.e. it’s competitor in
September 2015
● Counter offensive Defense : Starbucks launching Alfonso Mango Frapuccino to compete with other
coffee brands
● Mobile Defence : KFC Chizza a pizza with no base but only chicken as it’s crust, Coke with VIO
flavoured Milk
● Contraction Defense : Pepsi Atom positioned as strong, fiest to counter Coca Cola’s thumps up.
Also, Maruti Kizashi Sedan was withdrawn after failing to impress
● Apple, Hero MotoCorp, Parle G
1. Samsung:
Geographic Region
Density 80 Countries worldwide
Urban & rural
Demographic Age
Gender
Life cycle stage
Occupation 18 to 65
Males & Females
Bachelors, Newly married, aged people
Students, employees and professionals.
Behavioral Degree of loyalty
Benefits sought
User status Hardcore loyals, softcore loyals, switchers.
Sense of belongingness, advanced features, overall high quality
Potential users, non-users, first time users, regular users
Psychographic Social Class
Lifestyle
All classes
Mainstreamer, succeeders, explorers
Positioning:
● All the products come under the name Samsun electronics which is an umbrella approach in its
● ‘The next big thing is here’ has taken the company to the top of the smartphone market.
● Samsung uses unique tagline for each and every product.
● Samsung had innovative features like value for money, integral part of family, energy efficiency.
Differentiation:
● By manufacturing its own major components of its mobile devices, Samsung achieves its cost
● It uses combined cost leadership and differentiation strategy by offering unique benefits in a
1. Tata Nano:
Idea Generation:
● To create safe, affordable, all weather form of transport to a family.
● To create an option for people who want to move from 2 wheeler to a 4 wheeler at affordable price.
Idea Screening:
● A scooter with 2 extra wheels at the back for extra stability?
● An auto rickshaw with 4 wheels?
● 4 wheeled rural car?
● But market wanted a car and it should be like a car.
● Mr. Girish Wagh talked with the customers.
● 3 wheeler drivers inevitably insisted on cheap and dependable trucks
● But he kept asking ,” Why do you want a 4 wheeler?”
● Finally he got an answer saying that if I had a 4 wheeler, I would have better marriage prospects in
my village.
● Thus, 4 wheels have emotional appeal and not just practical
● Car to cost Rs.1 lakh on road
● Car to be built on different platforms than the conventional ones
● It must meet all safety and regulatory requirements.

● A truly people’s car: Low cost, safe and fuel efficient.
Business Analysis:
● What makes nano so cheap?
● Reduction in the number of non-essential parts
● Redesigning essential parts to lower cost and maximize functionality without reducing quality.
● Weight reduction wherever possible
● Three lug nuts instead of the usual four.
● Same dashboard can be used for Right hand as well as Left Hand drive models.
● Nano is constructed of components that can be built and shipped separately to be assembled in a
variety of locations.
● Use of aluminum engine to reduce weight and costs.
● Use of light weight steel wherever possible
Testing:
● Crash Testing
● Testing on torture tracks
Commercialization:
● Tata Nano was launched in 2008.
● It was promoted using advertisement through various mediums.
● The cost of the car was Rs. 1 lakh

Market Followers
● Akash Arora adopted the domain name of Yahoo on his website “yahooindia.com”
● It offered similar services like Yahoo and attempted to cash in on the goodwill used by Yahoo.
● People could not differentiate between Yahoo and Yahooindia
● Hence, Yahoo sued Akash Arora for using similar domain name as it offered same services like
Yahoo.
● This was a case of copying the trademark of domain name Yahoo and Akash Arora was held liable
for it and had to pay the respective damages under Trademarks Act, 1999.
Adapters:
● Britannia Good day launched in 1986 (33% market share)
● Parle 2020 launched in 2008 (18-20% market share)
● Dish TV launched in 2004
● Tata Sky launched in 2006
Imitators:
● Imitation jewelry
● Footwears
Cloners:
● Colgate and Cooolgate
● Bisleri and Bilseri

● Gucci and Gucca
● Tide and Tied
Counterfeiters:
● Samsung phones are counterfeited in Bangkok
● DVD Piracy
BCG Matrix
The Boston consulting group’s product portfolio matrix (BCG Matrix) is designed to help with long term
strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products
to decide where to invest, to discontinue or develop products. It is also known as the growth/share matrix.
For major organizations like HUL, ITC etc which have multiple categories and within the categories, they
have multiple lines of products, the BCG analysis becomes very important. At a holistic level, they get to
make a decision on which product to continue and which product to be divested. Which product can give
new returns with good investment, and which products are reaching the apex of market share.
● Cash Cows – High market share but low growth rate (Most profitable).
● Stars – High market share and High growth rate (High competition).
● Question marks – Low market share and high growth rate (Uncertainty).
● Dogs – Low market share and low growth rate (Less profitable or may even be negative
profitability)
Ansoff Matrix:
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior
managers, and marketers devise strategies for future growth.
The output from the Ansoff product or market matrix is a series of suggested growth strategies which set
the direction for the business strategy.

Product extensions are versions of the same parent product that serve a segment of the target market and
increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same
product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they
enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it.
Line extensions occur when a company introduces additional items in the same product category under the
same brand name such as new flavours, forms, colours, added ingredients, package sizes. Line extension
occurs when the company lengthens its product line beyond its current range. The company can extend its
product line horizontally (Width) or vertically (Depth).
Indian example is HUL's Wheel Vs RIN both which offer the same core benefit which is a washing
detergent, but targeted at different segments. One other example if of Horlicks, which has extended its
product line vertically in the form of Junior Horlicks, Women’s Horlicks and Horlicks Lite.
Examples:

The Market Challenger Strategies are the marketing strategies adopted by the firms, either occupying the
third or runners-up position in the market, to attack the leader or the immediate competitor with the
intention to capture a greater market share and earn huge revenues.
Generally, the market challengers are those firms, which have a good reputation in the market and enjoys a
strong financial position. These firms target the market leader or the competitor at the same level with the
objective, to reach the first position in the market or become an industry leader.
1. Frontal Attack: This is a direct attack based on the competitors’ strength. Usually the attack is done
by offering lower price, better quality product, aggressive advertising, or better service quality to
customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the challenger with
about 9% market share. But by, targeting the product (Snapdragon 800 series processor), price (about half
of Samsung), place (flash sales) Xiaomi became the market leader with 25% market share.
2. Flank Attack: This means attacking the competitors’ weak points. Market challenger can identify
the weak points based on geographic. This means challenger find the area competitors are under
performing and develop marketing strategy to cater that area. Other than that, they can also challenge the
competitors based on segmentation. This is where challenger identifies the segment that competitors left
out and create a product to satisfy them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by introducing the
colour TV “Sampoorna” for the rural people and outshine the other coloured TV players who had a less
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing the robust,
durable, rough and tough outdoor shoes, and hence captured the untapped market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths and weaknesses
at the same time. Simply put, encirclement attack is the combination of frontal and the flank attacks.
Eg. Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and also by promoting
that unlike Dettol, Savlon doesn’t sting and smells much better.
Eg. Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing Maruti Suzuki
to do the same
4. Bypass Attack: The Bypass Attack is the most indirect marketing strategy adopted by the
challenging firm with a view to surpassing the competitor by attacking its easier markets. The firm can
adopt any of the three approaches before launching the bypass attack; they can either diversify into the
unrelated products, into the new geographical markets or leapfrog into the new technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral water brand, very
much before the coke’s Dasani Brand.
Eg. Parle Agro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured carbonated soft
drink
5. Guerrilla Attack: Guerrilla warfare is the marketing strategy adopted by the challenger firm
intended to launch the intermittent attacks with an intention to harass or demoralize the competitor.
Eg. Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce websites adopt this
strategy by offering deep price cuts certain days a year)
Eg. Dunkin brand used this strategy when it came up with its espresso machines in every Dunkin US
location. Dunkin' has also tweaked its espresso strength and flavour profile, updated its coffee packaging,
and launched a marketing campaign with weekly espresso-beverage-based promotions running through the
end of the year and thus surpassed Starbucks to become market leader.
PRODUCT LIFE CYCLE
MAGGI ATTA NOODLES

● It’s a Brand of Instant Noodle made by Nestle India Ltd.
● It was found by the Maggi family in Switzerland in the 19th century.
● Nestle launched Maggi for the first time in India in the year 1982.
● Nestle wanted to explore the potential for such an Instant food among the Indian market.
● It took several years and lot of money for Nestle to establish its Noodles brand in India.
● Now it enjoys around 90% market share in this segment.
ISSUES
INTRODUCTORY STAGE
● High-failure Rates
● No Competition
● Frequent product and Modification
● Limited Distribution
● High-marketing and product costs
● Promotion focuses on awareness and Information
● Promotional campaigns in school.
● Advertising strategies: - focusing on kids.
Veg Atta Noodles

GROWTH STAGE
• In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Over
Offered in more sizes, flavours, options
MATURITY STAGE
• The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had four
• Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups,
DECLINE STAGE
• Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or
adoption of substitute products
Market Nichers
Mysore Sandal Soap
During World War I, the exports were stopped and the reserves of sandalwood piled up. The solution was
to use them to extract sandalwood oil. To this end, in 1916, the Government Sandalwood Oil Factory was
established by the Maharaja of Mysore, His Highness Nalwadi Krishna Raja Wodeyar and Diwan Sir M
Visvesvaraya.
In 1918, when the Maharaja received a gift pack containing soaps made using sandalwood oil, the idea of
using the natural sandalwood oil for making soap was born. To put this into action, SG Shastry, a qualified
industrial chemist, was sent to London for advanced training in soap and perfumery technology. On his
return, he developed a sandal perfume. This marked the beginning of the era of the Mysore Sandal Soap.
This was the first indigenous soap produced in the country with sandalwood as the base fragrance; it is also
the only soap in the world made from 100 per cent pure sandalwood oil (while it contains other vegetable
oils like clover leaf, vetiver, patchouli and orange, there is no animal fat). The soap has 80 per cent TFM
(Total Fatty Matter) which indicates that it is of the highest quality.
As sales increased, the production capacity was enhanced and in 1944, a second plant was established in
Shimoga to extract sandalwood oil. By 1965, the company was exporting its products. In 1980, the
Government Soap Factory became a public sector enterprise and was renamed KSDL.
Mysore Sandal Soap has a unique place in the Indian Soap market. This soap with a history dating from
1918 has survived in a market which is witnessing cut throat competition. Mysore Sandal Soap is
manufactured by the Public sector company : Karnataka Soaps &Detergents ltd ( KSDL). Although this is a
product from public sector, the brand has been able to create a unique place in the Indian consumer's mind.
In the Rs 4500 crore Indian soap market, this brand has a minuscule share of only 80 crore that is 2%. The
brand can be said to be a niche brand in the premium soap category. The brand typically faces the problem
that all heritage brands faces, that is to stay relevant to the new generation.Mysore Sandal is facing the
issue that its loyal users are getting older and the new generations are moving to more visible brands. Those
who have used this brand will vouch for its quality and fragrance. The KSDL has developed new varieties
of sandalwood soap during the last couple of years. Besides Mysore Sandal Gold soap, it has introduced
into the market the Mysore Sandal Millennium Luxury Soap, which was launched in 2013 priced at Rs 720
for a 150 gm cake.
Meanwhile, the ‘Soap Santhe’ of the KSDL has been receiving good response with more customers visiting
the Nanjaraja Bahadhur Choultry in Mysuru to make a choice selection from among the state government-
run products. Its products are now being promoted by organising annual ‘Soap Santhe’ to expand its reach.
In all, 38 different products, ranging from soaps, sandal oil, incense sticks, detergents and cosmetics are
being showcased and marketed at the ongoing fair in Mysuru. According to research, in both urban and
rural markets, the Mysore Sandal soap (basic variant) is the predominantly preferred soap. Next is the
Mysore Sandal Classic soap, which is at the second position. The other fast moving variant is the Mysore
Sandal Gold Soap.
⮚ End user specialist: Beardo Beard and Hair growth oil. This is
specifically for those men who want a long beard. Also, another example is
Lefty’s San Francisco is a left-handed retail store that sells school
supplies, kitchen goods, and gardening tools, and many more things for the
lefties.
⮚ Geographic specialist: Bombay Shaving company is an example of

geographic specialist. It’s production and target audience was initially
strictly restricted to the city of Mumbai.
⮚ Customer size specialist: Tree of Life(Hallmark) specializes in only

Jewish greeting card and gifts and celebrates Jewish faith.
⮚ Product specialist: UNTUCKit brand has created a new line of products

for people who do not like tucked shirts. It gives you a feel of a tucked
shirt without actually tucking it.
⮚ Specific customer specialist: Weber carburettor is a company which

provides carburettors to only high end cars like Porsche, Ferrari, and BMW.
The Surf Ad: For Padamsee, Lalitaji always remained a special character since she was crafted on his
mother. My mother would always say, ‘Saste cheez kharidne mein aur acche cheez kharidne mein farak
hota hai’ [there’s a difference between buying cheap and buying good], and that’s how we created that
brand value,” Padamsee had said.
“The price of Surf washing powder was higher than other detergent powder brands, but we were
determined not to alter the price or lower it — so we went ahead with it and it was a huge success,”
Padamsee had explained while recalling why the ad worked.
Lalitaji, played by Kavita Chaudhury, was not a diminutive woman. She was a homemaker who was
assertive and powerful. She convinced the audience that Surf was the right product to buy, even though it
meant shelling out a bit more. “Back in those days, it was not an easy task to promote a product that was
more expensive than others,” he had said. Buying Surf almost became a status symbol in India.
Padamsee would go on to create many iconic ads for India. Liril and Lalitaji continue to be among his best
work. Both showed powerful women who were taking their own decisions or doing their own thing, even
though they seemed to represent two different faces of India.
This was an ad in response to Nirma. And one that used a totally different approach. The iconic Nirma ad
highlighted the brand in a very filmy way – there was a lot of dancing, a lot of modelling and a lot of
music. Surf on the other hand just went in with a basic testimonial ad, with no flourishes whatsoever. The
Surf ad was very direct, a Q&A that answered why Surf should be THE brand of detergent for anyone who
did not want to compromise on quality. The two approaches were so different from each other yet both
somehow managed to get A LOT of attention.
The Surf ad is a great competitive ad. It literally is taking down the competition, although Nirma is not
mentioned by name. And it is almost built on arrogance – Lalitaji is not only unapologetic about buying
Surf but seems actually annoyed at having to justify her purchase. Although, she seems almost
contradictory at times. She is ready to haggle for the price of fruit, but then claims that she will not
compromise on washing. That seems ironic, when you consider that washing powder is not as important for
households as food is!
But the fact that the ad used the “ideal” Indian housewife in perfectly white and bright saree, Lalitaji,
bargaining with the vendor also established that she was not lazy or naive. It put the idea of Lalitaji being
an informed and clever buyer who would not pay even a penny extra for a product. And when a buyer as
smart as Lalitaji advocates a product’s quality then it becomes even more believable, which is what the ad
used as its basic premise.
.
RISHABH JAIN
ROLL NO 104
Once a company has Segmented market carefully. Chosen its target customer group.
Identified their needs. Determined desired market positioning. Then, it is ready to develop /
launch suitable new product. Marketing actively interacts with other departments (such as R
& D) for product development.
New product development due to:
Need to maintain sales through replacement products.
Need to build sales.
Customer requirement for new products
Stages in new product development are:
● Idea Generation.
● Idea Screening.
● Concept Development & Testing.
● Marketing Strategy Development.
● Business Analysis.
● Product Development.
● Market Testing.
● Commercialization
New Product Development of Coca Cola Zero
1. Idea Generation
The Coca-Cola Company Research and Brand teams held an idea
generating meeting to explore how to create a healthy coke. Every employee was encouraged
to bring up their own thought.
2. Idea Screening
In the phase of idea screening, new product ideas are analyzed to
determine whether or not the ideas match the resources and goals of companies.
One of the ideas passed in the screening was the Coca Cola Zero. This new coke was
created by young people and provides great coke taste with zero sugar. Understanding the
customer’s personal value equation was very important for the Coca Cola Company.
3. Concept Development and testing
The result of concept testing helps the personnel of NPD better understand their
product attributes and benefits..
The testers were Coca Cola Company’s employees or the staffs’ friends or family members.
During this testing time, the supervisor of the Coca Cola asked some questions such as “Do
you find the idea of Coca Cola Zero soft drink attractive?”, “Which factors are or are not
interesting to you for this kind of coke?” etc.
4. Marketing Strategy Development.
Coca Cola Zero was tested online by creating an image and feedbacks gathered
from representatives of the target market. It was marketed as having a taste that is
indistinguishable from standard Coca-Cola, as opposed to Diet Coke, which has a different
flavor profile
5. Market Testing
Testers were the customers. Given samples of the product, consumers were more rational
and wise to pick up the ones that they think are good. This is also a consumer-oriented test.
During the concept testing stage, there are still a lot of methods such as in-depth interviews
and focus groups being used except for asking questions.
6. Commercialization
Coca-Cola Zero Sugar, also called Coke Zero, is a diet cola produced by The Coca-Cola
Company.[1] In some countries it is sold as Coca-Cola No Sugar.[2]
The drink was introduced in 2005 as Coca-Cola Zero as a new no-calorie cola.
Pricing Strategies
1.Penetration Pricing : price is set artificially low to gain market share quickly. This is done
when a new product is being launched. It is understood that prices will be raised once the
promotion period is over and market share objectives are achieved. Example: Mobile phone
rates in India; housing loans , JIO
2.Economical Pricing : Margins are wafer thin; overheads like marketing and advertising
costs are very low. Targets the mass market and high market share. Example: Friendly wash
detergents; Nirma; local tea producers.
3. Skimming Pricing : LG
4. Bundle Pricing : Colgate Paste and toothbrush
5.. Promotional Pricing : Tata Sky
6.Geographical Pricing : Nandani Milk Cheaper in South India
7.Premium Pricing : High price is used as a defining criterion. Such pricing strategies work
in segments and industries where a strong competitive advantage exists for the company.
For ex : Gillette in blades
8. Psychological Pricing: uses psychological pricing as its pricing strategy. It generally
prices a product to the nearest lower “9”digit figure of the actual price. For example, any
commodity to be prices $10 is priced at $9.99 to lure and attract more customers.
1. Intensive Distribution : A marketing strategy under which a company sells through

as many outlets as possible, so that the consumers encounter the product virtually
everywhere they go
For ex: Coca Cola
2. Exclusive distribution : It is an agreement between a distributor and a manufacturer
that the manufacturer will not sell the product to anyone else and will sell it only to
the exclusive distributor.
For Ex : Maruti has recently launched its ‘Nexa’ showroom that is for its slightly
higher end cars. This is an example of exclusive distribution model.
3. Selective distribution : Selective distribution is a distribution approach where
selective and few outlets are chose through which the product is made available to the
customers
For Ex : Observe the availability of brands like Louis Philippe or Van Huesen, you
will see that these brands are available in the exclusive show rooms of these brands
and also in a few high end stores in malls. But if you talk about Raymond, then
Raymond has selective distribution because besides selling in its own exclusive
outlets, Raymond is sold via franchise’s as well as in other other multi brand outlets.
Watches of Titan are also selectively distributed because besides being sold in
“World of Titan” they are also sold in selected outlets.
4. Direct Distribution: At any given point of time, when a company sells a product
directly to the end customer, then it is known as Direct distribution channel.
For ex : An excellent example of direct distribution is Dell company.
Promotion & Insights
Promotion is done based on insights

Some of the examples are as follows
1. Liril : Promotion was done based on the insight that women get time only
during bathing.
2. Idea : Promotion was done to show that now idea network covers whole of
India
3. Airtel : They targeted Youths by Promotion through ads like “ Har ek friend
jaruri hota hai “
4. ICICI : Promotion through the AD BANDEY ACCHE HAI
5. Coca Cola : Promotion through the ad “Thanda Matlab Coca Cola”
Product Life Cycle
Product Life Cycle

Example MAGGI
Introduction Stage
1. High-failure Rates
2. No Competition
3. Frequent product and Modification
4. Limited Distribution
5. High-marketing and product costs
6. Promotion focuses on awareness and Information 2-minute instant noodle was great
success.

1. Promotional campaigns in school.
2. Advertising strategies: - focusing on kids.
3. Availability in different packages
Growth Stage
1. Increasing rate of sales

2. Entrance of competitors
3. Initial healthy profits
4. Promotion emphasizes brand ads
5. Prices normally fall
6. Development costs are recovered
7. 10 yrs back it enjoyed around 50% market share in this segment which was valued at
around 250 crores.
8. In order to improve sales , NIL changed the formulation of Maggi noodles in 1997.
9. However, this proved to be a mistake, as consumers did not like the taste of the new
noodles.
10. In March 1999, NIL reintroduced the old formulation of the noodles, after which the
sales revived. Over the years, NIL also introduced several other products like soups
and cooking aids under the Maggi brand. Offered in more sizes, flavors, options
Maturity Stage
1. Declining sales growth
2. Saturated markets
3. Extending product line
4. Stylistic product changes
5. Heavy promotions to dealers and consumers
6. Prices and profits fall
7. In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2-
minute noodles by launching a new category of liquid snacks under its food brand,
Knorr Annapurna.
8. The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs
5 and had four variants: two chicken options and two vegetarian.
9. Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at
all age groups, particularly office-goers. Many consumer products are in Maturity
Stage.
Decline Stage
1. If no product innovation brought
2. Long-run drop in sales
3. Large inventories of unsold items
4. Elimination of all nonessential marketing expenses Rate of decline depends on

change in tastes or adoption of substitute products
STPD Of Sensodyne Toothpaste

1.Segmentation of Sensodyne Sensodyne segments its base on Sensitivity – Dental Care
Age Group Sensodyne Sensitivity Age Group.
2.Targeting : It targeted people having sensitive teeth. It is premium product , priced
higher than regular toothpaste. 80% of patients who undergo teeth whitening treatment
will experience sensitive teeth. Sensodyne is marketed as toothpaste for relieving
discomfort.
3. Positioning : Sensodyne is a toothpaste marketed for individuals with sensitive teeth
and those who wish to prevents sensitive teeth.
4. Differentiation :Toothpaste for sensitive teeth.
BCG matrix of Dabur
CASH COW QUESTION MARK

Dabur red toothpaste New U
Real fruit Juice Fem Beauty care
STAR DOG
Hajmola Honitus
Chyawanprash Dabur Balm
Dabur Amla Hair Oil Dabur Lal Powder
Dabur Glucose
MARKET SHARE
Ans off Matrix of Snap deal

Porters 5 forces of STARBUCKS
Threat of new entrants: moderate
The threat of new entrants for Starbucks is moderate. The barriers are not very high and the
initial investment to start a coffee brand is not high either. The level of saturation in the
industry is moderately high. New entrants can compete with brands like Starbucks at local
level.
Threat of Substitutes: Moderate to high
The number of substitute products for the Starbucks brand coffee is high. From juices to tea
and alcoholic as well as non-alcoholic beverages there are several substitutes available in
the market. There are pubs and restaurants that provide both good ambience and quality
products. Another source of threat in this area are the homemade products that the
consumers can make at home.
Bargaining power of buyers: Moderate to low
The bargaining power of buyers in case of Starbucks is moderate to low. The size of
individual purchases is small and so single buyers do not hold enough influence. Apart from
it the coffee brand has a diverse customer base. Its customers are mainly quality sensitive
and willing to pay higher prices for premium quality products
Bargaining power of suppliers: low to moderate

Suppliers can exert only low to moderate pressure on Starbucks. The brand has its own
supplier diversity policy that it uses to select the suppliers. Ethical sourcing is another
major policy at Starbucks. The brand sources Coffee ethically from several parts of the
world. It is also growing with the coffee farmers directly that has helped it gain higher
control over its supply chain. It eliminated the mediators and started sourcing from the
farmers directly.
Competitive rivalry: Moderate to high
The intensity of competitive rivalry in the industry is moderate to high. It is because there is
monopolistic competition in the industry and the number of firms competing for market
share is high. The entry and exit barriers are small. The main factor that moderates the
competition for Starbucks is its market share.
Product Line Extensions-Cadbury
Chocolate Chocolate boxes and puches Beverages Biscuits

bars
5star Celebrations Bournvita Oreo
Dairy milk Dairy Milk shots
Bourville Gems
Perk Home Treats
Temptations
Market Challengers:
•Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti
Dahi at a low price with the same level of the quality as that of other competitors in the
market.
•Flank attack: Savlon attacking Dettol that it doesn’t hurt while applying an antiseptic liquid.
This was the weakness of Dettol.
•Bypass attack: Jio Bypassed the call market and entirely focused on data pack. This is the
classic example of Bypass attack.
• Guerrilla Warfare: Dunkin Donuts used this tactic to counter the Coffee Industry in South
Korea. It installed machines in public transport bus which released a fragrance of Dunkin
Donut coffee whenever the tune of dunkin donuts was played.
Market Leaders:
· Position defence: Gillette is the market leader and to retain its position the
company entered into women’s segment and launched products like women’s
razors, Venus, Foams. Goodnight to retain its position as market leader launched
a new product (fast card) which does not even require electricity. As a result it
successfully penetrated into rural market.
· Flanking defence: Maggie launching atta noodles(Taste bhi health bhi). Coke
and Pepsi launching a diet coke/ low sugar drinks.
· Pre emptive defence: ITC venturing into hotels. ITC venturing into retail.
Parley going from biscuits to chocolates and juices (frooti).
· Mobile defence: Facebook acquiring whatsapp.
· Counter offensive defence: The Hindu vs. Times Of India.
Market nichers:
End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who
lefties.
Specific customer specialist: Weber carburettor is a company which provides carburettors to
Market followers:
· Market adapters: 1) Britannia Good day, Parley 20-20, Priyagold butter
biscuits. 2) Dish tv, Tata Sky, Airtel tv.

Sumitha Madhuri - 117
· A customer is a person or company that receives, consumes or buys a product or

service and can choose between different goods available in the market.
purpose. The consumer is an individual who pays some amount of money or the thing
required to consume goods and services.
· Example: For a product like Baby Oil (Johnson’s baby oil), the mother of a child
would be the customer who is the buyer of the product but the consumer would be the baby
on which the product is used on.
DISTRIBUTION
· Example : E- business (Amazon selling various products)

· Example : Avon selling cosmetic products through retailers.
· Example : Mobile phone brand Redmi by Xiaomi.
· Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer

To Consumer
· Example : The products sold by Nestlé.

o Awareness of need arising - This is classified as Internal need and

External need
o A person see’s a commercial for a new pair of shoes, stimulates his/her

recognition that they need a new pair of shoes.
o External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison shopping; public
sources etc.
· A successful information search leaves a buyer with possible alternatives, the evoked
set.
· For the search of new pair of shoes, the person would do external search like ask a few
friend, do a Google search for places to shop etc.
o Final Decision on which place (store) as well as which type of shoe is

decided and the purchase is made.
o Evaluation if the pair of shoes chosen was actually the right choice and
would you go back to the store for repeat purchase.
1) Automobile Industry (Ford Motor)

· Threat of Rivalry: Ford needs to compete against top players (e.g. Toyota)
that aggressively innovate and market their products. Also, the automotive
industry has high exit barriers, which means that firms would rather keep
competing with Ford than to close their business, because of the high costs and
investments. Such a condition exerts a strong force of competition against Ford.
In addition, Ford must compete against a moderate number of firms, especially
a few large ones like General Motors. Based on this aspect of the Five Forces
analysis, Ford must maximize its competitive advantage to address the external
factors linked to competition.
· Threat of New Entrants: Companies like Ford commit to huge spending

to set up and maintain their businesses and facilities. These costs are a barrier to
entry that weakens the threat of new entrants. In addition, it is costly to develop
a strong brand comparable to Ford’s, thereby making it difficult for new entrants
to effectively compete against industry giants. Based on this aspect of the Five
Forces analysis, external factors present only a weak threat against Ford. The
external factors that contribute to the weak threat of new entrants against Ford
are as follows: High capital costs (weak force). High cost of doing business
(weak force). High cost of brand development (weak force).
· Threat of substitutes: There are considerable substitutes to Ford’s

products, including public transportation and bicycles. However, these
substitutes are not always available or appropriate in certain areas or situations.
In addition, the switching costs are moderate because, even through Ford’s
customers can shift to using these substitutes, they cannot easily do so when they
are still paying for their car loans. Also, in many instances, these substitutes have
lower performance than Ford’s products in terms of convenience and safety.
Based on this aspect of the Five Forces analysis, Ford needs to address suppliers
as a second-priority external threat.
· Bargaining Power of Suppliers: The moderate overall supply and

moderate population of suppliers give suppliers significant but limited
bargaining power on firms like Ford. Also, most of these suppliers have low
forward vertical integration, which means that they do not own or control the
distribution and sale of their products to Ford. The suppliers’ bargaining power
is further weakened because of Ford’s backward vertical integration through the
Ford River Rouge Complex. Through the Complex, Ford produces some of the
materials it uses to manufacture cars and related finished products. Thus, this
aspect of the Five Forces analysis shows that Ford must consider the significant
but limited external factors linked to suppliers’ effect on the business.
· Bargaining Power of Buyers: Ford Motor Company’s customers face

moderate switching costs, which are the consequences of moving from one firm
to another. In this case, customers can easily transfer to other firms, although
infrequently because automobiles are big-ticket items. Also, each purchase of
Ford’s products is moderate in terms of its price and contribution to the
company’s revenues. Thus, even a small change in customer’s demand can have
significant consequences on Ford. In addition, the moderate availability of
substitutes gives customers the option to move away from Ford. Thus, Ford
Motor Company must maximize customer satisfaction to address the external
factors in this aspect of the Five Forces analysis.
Pricing Strategies
1) Skimming
2) Penetration
· When IKEA first opened in china the stores were very popular,
but customer didn’t spend much, so IKEA slashed its price in China-
below the equivalent prices in other IKEA markets to penetrate in
Chinese market
· Frito-Lay introduced Stax to the market in 2003. The brand was

a direct competitor to the well-established Pringles line of chips.To
draw more business, the company offered the chips at a steep discount
of $0.69 per canister. This earned the brand prominent display
locations at many retailers. When the chips had fully penetrated the
market, the price quickly rose to well above $1.
· A combination of rich product assortment and making it available

at everyday low price (EDLP) is DMART’s winning formula in value
retailing. For EDLP, the company focuses on everyday low cost
(EDLC)
· Big Bazaar
4) Surge Pricing
· Higher price of Travels services or bus services/Flight services on days
near festive seasons
5) Discount Pricing
· Bundle Discounts – Buy one get one free
6) Psychological Pricing Introduction:
· L’Oreal is a great example, providing the public with three different segments at
different prices. They have positioned themselves in the luxury market, professional
market, and consumer market, allowing open purchasing throughout. They give
consumers the option to buy Kiehl’s Shampoo for Rs.2500, Redken for Rs.1500 or
Garnier for Rs.300.
· Artificial Time Constraints on E commerce saying HURRY UP, ONLY 3 LEFT
· Innumeracy - “Buy one get one free” or “50% off a two items?” Both are the same
deal but research has shown that most people would prefer the first option, even though
the two options are identical. This phenomenon is known as innumeracy
· Price Appearance : Higher price , higher quality (Apple phones)
7) Loss Leadership
· HP printers. HP may sell printing machines free of cost. Seeing this offer everybody
will rush to the markets and get the machine. But in order to make printing machine work,

· Maruti Suzuki Cars – New Market segment where customer switching from 2 to 4 wheeler
· Cadbury Dairy Milk instead of just birthday celebrations, using taglines PAPPU PASS HOGYA
· Position Defence : Parle G, Gillete Razor, Dettol Hygiene
(Superior brand power makes them impregnable)
· Flank Defense : Nestle India rolling put 2 minute Maggie noodles

to appeal to young people under the brand hot heads
· Pre-emptive defense : Ola introducing Ola shuttle service to

outsmart Uber i.e. it’s competitor in September 2015

· Mobile Defence : KFC Chizza a pizza with no base but only

chicken as it’s crust, Coke with VIO flavoured Milk
· Contraction Defense : Pepsi Atom positioned as strong, fiest to

counter Coca Cola’s thumps up. Also, Maruti Kizashi Sedan was
withdrawn after failing to impress
Segmentation, Targeting, Positioning &

Differentiation
1. Samsung:


aged people
Students, employees and

Occupation professionals.

loyals, switchers.
Sense of belongingness,
Benefits sought advanced features, overall
high quality
Potential users, non-users,

User status users
explorers
Lifestyle
Positioning:
· All the products come under the name Samsun electronics which is an umbrella approach in its
· Samsung had innovative features like value for money, integral part of family, energy efficiency.
Differentiation:
· It uses combined cost leadership and differentiation strategy by offering unique benefits in a product
and thus delivering a lower priced product than Apple.
1. Tata Nano:
Idea Generation:

affordable price.
Idea Screening:


· Finally he got an answer saying that if I had a 4 wheeler, I would have better marriage
prospects in my village.
Business Analysis:

· Redesigning essential parts to lower cost and maximize functionality without reducing
quality.

Testing:
· Crash Testing
Commercialization:
Market Followers
1. Cello Household products vs Modware India:
· Cello launched a bottle by the name ‘PURO’ in 2016.

· It was a two-toned colored bottle.
· Modware launched a bottle names ‘KUDOZ’ in 2017 with the same
features and same design.
· Cello filed a case for infringement of design.
· Modware defended by saying that cello had taken the design from the
existing pre-designs in the market and also said that this design was originated by
them.
· However, Cello won the case and Modware had to pay damanges to Cello.
· This is an example of Design Infringement under Designs Act, 2000
Adapters:

Imitators:
· Footwears
Cloners:

· Gucci and Gucca
· Tide and Tied
Counterfeiters:

· DVD Piracy
BCG Matrix
multiple lines of products, the BCG analysis becomes very important. At a holistic level, they get to make a
decision on which product to continue and which product to be divested. Which product can give new returns with
good investment, and which products are reaching the apex of market share.
· Dogs – Low market share and low growth rate (Less profitable or may even be negative profitability)
Ansoff Matrix:


Examples:

attack is done by offering lower price, better quality product, aggressive advertising, or
better service quality to customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the
challenger with about 9% market share. But by, targeting the product (Snapdragon 800
series processor), price (about half of Samsung), place (flash sales) Xiaomi became the
market leader with 25% market share.
2. Flank Attack: This means attacking the competitors’ weak points. Market challenger
can identify the weak points based on geographic. This means challenger find the area
competitors are under performing and develop marketing strategy to cater that area. Other
than that, they can also challenge the competitors based on segmentation. This is where
challenger identifies the segment that competitors left out and create a product to satisfy
them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by
introducing the colour TV “Sampoorna” for the rural people and outshine the other coloured
TV players who had a less focus on these areas.
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing
the robust, durable, rough and tough outdoor shoes, and hence captured the untapped
market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths
and weaknesses at the same time. Simply put, encirclement attack is the combination of
frontal and the flank attacks.
Eg. Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and
also by promoting that unlike Dettol, Savlon doesn’t sting and smells much better.
Eg. Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing
Maruti Suzuki to do the same
4. Bypass Attack: The Bypass Attack is the most indirect marketing strategy adopted by
the challenging firm with a view to surpassing the competitor by attacking its easier
markets. The firm can adopt any of the three approaches before launching the bypass
attack; they can either diversify into the unrelated products, into the new geographical
markets or leapfrog into the new technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral
water brand, very much before the coke’s Dasani Brand.
Eg. Parle Agro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured
5. Guerrilla Attack: Guerrilla warfare is the marketing strategy adopted by the

challenger firm intended to launch the intermittent attacks with an intention to harass or
demoralize the competitor.
Eg. Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce
websites adopt this strategy by offering deep price cuts certain days a year)
Eg. Dunkin brand used this strategy when it came up with its espresso machines in every
Dunkin US location. Dunkin' has also tweaked its espresso strength and flavour profile,
updated its coffee packaging, and launched a marketing campaign with weekly espresso-
beverage-based promotions running through the end of the year and thus surpassed
Starbucks to become market leader.
PRODUCT LIFE CYCLE
NOKIA
MATURITY STAGE
DECLINE STAGE
Market Nichers
Raymond: Made to Measure
The concept of Made to Measure services on a pilot basis in Mumbai from May 2012.The delivery time would be
10-15 days and at no extra price. Made to Measure was not advertised aggressively and needs to publicise the
concept beyond regular buyers. The company planned to open 70-80 more stores including exclusive brand outlets
(EBO) and shop in shop stores by 2013. In terms of advertising it majorly banked on local activations, city specific
engagement programmes and radio. Made to Measure stores is the latest concept of Raymond where the customer is
promised that the material undergoes 150 machine cutting steps for the perfect finish. The customer details are sent
to an exclusive garment crafting facility where individual fabric pieces are cut precisely by a laser machine. The
fabric then undergoes 150 machine operations over a period of 7 days to create a unique signature garment. From
fusing collars and lapels at regulated temperatures to careful blending of canvas, each process ensures the highest
standards of quality for the customer’s personalized garment. The garment is delivered at the stipulated date with the
exclusive label defining its rich trademark craftsmanship, bringing out a sartorial elegance in a gentleman. Raymond
has about 70 retail outlets for its made-to-measure business and 20 exclusive stores. The company, which did not
share its sales figures, plans to expand its presence in this segment by 40% and expects revenues to double this fiscal.
The other players in this business include Madura Fashion & Lifestyle’s Louis Philippe and Arvind Mills. Kachins,
which is another veteran luxury suit maker in Delhi, is also witnessing growing demand from young professionals.
Made-to-Measure brand, the company’s fastest-growing segment, has quadrupled during this period. According to
company executives, prices range between Rs 15,000 and Rs 4 lakh while the average customer spends about Rs
30,000. Raymond Ltd. has shifted its focus to bringing in a lot of innovation, in terms of product offering, into its
suiting business.
Segmentation & Targeting The strategy of Raymond is to sell the brand through multi-brand outlets (MBOs) which
is where the typical tier 2 and tier 3 customer shops. So this brand will not affect the positioning of Raymond brand
which is largely sold through its exclusive brand outlets (EBOs) and larger MBOs.
Positioning Raymond‘s positioning of ‗The Complete Man‘ which took shape in the early ‗90s is a case study in
itself. The ‗80s were marked with the imagery of the angry, young man, so Raymond‘s plank —of showcasing the
sensitive, mature, metro sexual side of an Indian male — actually stood out and was welcomed by consumers. For
years, fabric manufacturer Raymond has kept its advertising true to its brand statement, The Complete Man. Each ad
released under this umbrella though explores a different aspect of a man's personality and relationships - be it with
his elders, romantic partners or pets. Each ad ends with the brand's signature tune, accompanied by a voice-over that
says, "The Complete Man.”
Promotion Raymond advertisement features its signature slogan ―Complete Man‖, over 20 years ago. The new
campaign uses an international model and is shot in a cutting studio that resembles a laboratory. Created by Famous
Innovations, the slogan says, ―Where Craft Meets Science‖ as if in obeisance to cutting and tailoring techniques.
Marketing Strategy Raymond one of the biggest retail chains has a market with over 715 Raymond stores spread
across 385 towns. Along with other brands under the Raymond portfolio-Park Avenue, Colour Plus, Parx, Raymond
ready-to-wear, they have more than 1,050 stores, which are both fully-owned and franchised stores. The company is
also developing an omnichannel to cater to the growing demand for online sales. It will renovate and upgrade more
than 100 stores during this year, while it sets up over 100 stores during the current financial year. Advertising- Frank
Simoes came up with the first memorable campaign with Guide to a well-dressed man in 1980s.Rajiv Agarwal of
Nexus Equity designed the complete man in 1992.The account remained with them until 2002 when it was assigned
to R. K. Swamy BBDO which handled it for a decade. Raymond has appointed Strawberry frog as its new creative
agency in 2014. Raymond moved its entire account to Madison and for social media, it signed Social Wavelength
and Bonsey, Singapore design consultancy for brand design related work. In 2014, the ad budget was
50cr.itemployed agencies like Publicis, Taproot and Grey India.

The Surf Ad: For Padamsee, Lalitaji always remained a special character since she was crafted on his mother. My
mother would always say, ‘Saste cheez kharidne mein aur acche cheez kharidne mein farak hota hai’ [there’s a
difference between buying cheap and buying good], and that’s how we created that brand value,” Padamsee had said.
“The price of Surf washing powder was higher than other detergent powder brands, but we were determined not to
alter the price or lower it — so we went ahead with it and it was a huge success,” Padamsee had explained while
recalling why the ad worked.
Lalitaji, played by Kavita Chaudhury, was not a diminutive woman. She was a homemaker who was assertive and
powerful. She convinced the audience that Surf was the right product to buy, even though it meant shelling out a bit
more. “Back in those days, it was not an easy task to promote a product that was more expensive than others,” he had
said. Buying Surf almost became a status symbol in India.
Padamsee would go on to create many iconic ads for India. Liril and Lalitaji continue to be among his best work.
Both showed powerful women who were taking their own decisions or doing their own thing, even though they
seemed to represent two different faces of India.
This was an ad in response to Nirma. And one that used a totally different approach. The iconic Nirma ad highlighted
the brand in a very filmy way – there was a lot of dancing, a lot of modelling and a lot of music. Surf on the other
hand just went in with a basic testimonial ad, with no flourishes whatsoever. The Surf ad was very direct, a Q&A that
answered why Surf should be THE brand of detergent for anyone who did not want to compromise on quality. The
two approaches were so different from each other yet both somehow managed to get A LOT of attention.
The Surf ad is a great competitive ad. It literally is taking down the competition, although Nirma is not mentioned by
name. And it is almost built on arrogance – Lalitaji is not only unapologetic about buying Surf but seems actually
annoyed at having to justify her purchase. Although, she seems almost contradictory at times. She is ready to haggle
for the price of fruit, but then claims that she will not compromise on washing. That seems ironic, when you consider
that washing powder is not as important for households as food is!
But the fact that the ad used the “ideal” Indian housewife in perfectly white and bright saree, Lalitaji, bargaining with
the vendor also established that she was not lazy or naive. It put the idea of Lalitaji being an informed and clever
buyer who would not pay even a penny extra for a product. And when a buyer as smart as Lalitaji advocates a
product’s quality then it becomes even more believable, which is what the ad used as its basic premise.
Atharva Orpe - 99
· A customer is a person or company that receives, consumes or buys a product or

service and can choose between different goods available in the market.
purpose. The consumer is an individual who pays some amount of money or the thing
required to consume goods and services.
· Example: For a product like Baby Food (Gerber Organic Baby Food) the mother of a
child would be the customer who buys the product but the consumer would be the baby who
consumes / eats the product.
DISTRIBUTION
· Example : Jewellery by Tanishq (promoted by Tata Group)
· Example : Hyundai Motors selling cars through authorised dealers.
· Example : Mobile phone brand Samsung by Samsung Group

· Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer
To Consumer
· Example : The products sold by PepsiCo

o Awareness of need arising - This is classified as Internal need and

External need
o Example: Hunger--Food. Hunger stimulates your need to eat.
o Internal search, memory.
o External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison shopping; public
sources etc.
o A successful information search leaves a buyer with possible

alternatives, the evoked set.
· Hungry, want to go out and eat, evoked set is
· Type of cuisine
● Chinese food
● Indian food
● Burger king etc
o The different types of restaurants which are available in the near by area.
· Final Decision on which place (restaurant) as well as which cuisine to eat is decided
and the purchase is made.
o Evaluation if the restaurant chosen was actually the right choice and will
you goes back to that restaurant again.

· Threat of Rivalry: The number of competitors in the industry in which

Reliance Industries operates are very few. Most of these are also large in size.
This means that firms in the industry will not make moves without being
unnoticed. This makes the rivalry among existing firms a weaker force within
the industry. The fixed costs are high within the industry in which Reliance
Industries operates. This makes the companies within the industry to push to full
capacity. This also means these companies to reduce their prices when demand
slackens. This makes the rivalry among existing firms a stronger force within
the industry. The exit barriers within the industry are particularly high due to
high investment required in capital and assets to operate. The exit barriers are
also high due to government regulations and restrictions. This makes firms
within the industry reluctant to leave the business, and these continue to produce
even at low profits. This makes the rivalry among existing firms a stronger force
· Threat of New Entrants: The product differentiation is strong within the
industry, where firms in the industry sell differentiated products rather a
standardised product. Customers also look for differentiated products. There is
a strong emphasis on advertising and customer services as well. All of these
factors make the threat of new entrants a weak force within this industry. The
capital requirements within the industry are high, therefore, making it difficult
for new entrants to set up businesses as high expenditures need to be incurred.
Capital expenditure is also high because of high Research and Development
costs. All of these factors make the threat of new entrants a weaker force within
this industry.
· Threat of substitutes: There are very few substitutes available for the
products that are produced in the industry in which Reliance Industries operates.
The very few substitutes that are available are also produced by low profit
earning industries. This means that there is no ceiling on the maximum profit
that firms can earn in the industry in which Reliance Industries operates. All of
these factors make the threat of substitute products a weaker force within the
industry.The very few substitutes available are of high quality but are way more
expensive. Comparatively, firms producing within the industry in which
Reliance Industries operates sell at a lower price than substitutes, with adequate
quality. This means that buyers are less likely to switch to substitute products.
This means that the threat of substitute products is weak within the industry.
· Bargaining Power of Suppliers: The number of suppliers in the industry

in which Reliance Industries operates is a lot compared to the buyers. This means
that the suppliers have less control over prices and this makes the bargaining
power of suppliers a weak force.The product that these suppliers provide are
fairly standardised, less differentiated and have low switching costs. This makes
it easier for buyers like Reliance Industries to switch suppliers. This makes the
bargaining power of suppliers a weaker force.
· Bargaining Power of Buyers: The number of suppliers in the industry in

which Reliance Industries operates is a lot more than the number of firms
producing the products. This means that the buyers have a few firms to choose
from, and therefore, do not have much control over prices. This makes the
bargaining power of buyers a weaker force within the industry. The product
differentiation within the industry is high, which means that the buyers are not
able to find alternative firms producing a particular product. This difficulty in
switching makes the bargaining power of buyers a weaker force within the
industry.
Pricing Strategies
1) Skimming
· Apple’s mobile phones are priced higher than Samsung, Xiaomi

(Read in Skiming)
2) Penetration
· When IKEA first opened in china the stores were very popular,
but customer didn’t spend much, so IKEA slashed its price in China-
below the equivalent prices in other IKEA markets to penetrate in
Chinese market
· Frito-Lay introduced Stax to the market in 2003. The brand was

a direct competitor to the well-established Pringles line of chips.To
draw more business, the company offered the chips at a steep discount
of $0.69 per canister. This earned the brand prominent display
locations at many retailers. When the chips had fully penetrated the
market, the price quickly rose to well above $1.
· Smart Phones : The two major suppliers of smart phones,

Samsung and Apple, follow markedly different pricing strategies.
Apple uses a skimming pricing strategy, and has been able to establish
a strong brand loyalty with its customers. This strategy keeps prices
high and never drops or offers any discounts. Apple customers are
convinced that its products are high quality, and each new phone
model comes with more exciting features. And people are willing to
pay the steep prices. On the other hand, Samsung is continuously
offering Android phones at introductory prices and discounts, hoping
to build brand loyalty. Samsung also partners with cell-phone
companies to provide Android phones at cheap prices in exchange for
commitments to long-term contracts. Consumers get enticed by the
low prices and overlook the cost of the terms of the contract.
· A combination of rich product assortment and making it available

at everyday low price (EDLP) is DMART’s winning formula in value
retailing. For EDLP, the company focuses on everyday low cost
(EDLC)
· Big Bazaar
· Big Basket
4) Surge Pricing
· On Diwali Nights, Ola & Uber price their rides higher than other days
· Higher price of Travels services or bus services/Flight services on days near festive
seasons
5) Discount Pricing
· Customer Value Discounts - A 15%-off coupon for first-time customers to get them
· Bundle Discounts – Buy one get one free
Garnier for Rs.300.
· Price Appearance : Higher price , higher quality (Apple phones)

7) Loss Leadership
· One popular example of this is a razor with disposable blades. Often, a store will
price the razor very low, but armed with the knowledge that the consumers with need to
purchase new blades, refill sets are over-priced to increase profits

· Cadbury Dairy Milk instead of just birthday celebrations, using taglines PAPPU PASS HOGYA
· Position Defence : Parle G, Gillete Razor, Dettol Hygiene

(Superior brand power makes them impregnable)
· Flank Defense : Nestle India rolling put 2 minute Maggie noodles

to appeal to young people under the brand hot heads
· Pre-emptive defense : Ola introducing Ola shuttle service to

outsmart Uber i.e. it’s competitor in September 2015

· Mobile Defence : KFC Chizza a pizza with no base but only

chicken as it’s crust, Coke with VIO flavoured Milk
· Contraction Defense : Pepsi Atom positioned as strong, fiest to

counter Coca Cola’s thumps up. Also, Maruti Kizashi Sedan was
withdrawn after failing to impress

Differentiation
1. Apple iPhone:
Geographic Region US & International
Density Urban
Life cycle stage Bachelors, Newly married
Income Higher income earners
Occupation Professionals & executives

Behavioral Hardcore loyalists Once an apple user, always
an apple user
Sense of achievement,
Benefits sought advanced features.
Potential users, non-users
User status
Psychographic Social Class Middle- & upper-class

families
Aspirer, succeeders,
Lifestyle explorers
Positioning:
· Usage and benefit based positioning strategies are used by Apple

· Apple’s brand is reflected through their core beliefs about innovation, imagination and
design.
· Apple is all about experience, it goes after emotional branding, something which is felt in
the heart and mind of the customers.
· Apple is positioned as a luxury brand that carries a huge emotional connection and
loyalty amongst its customers
Differentiation:
· Apple never introduced a price ceiling with any Apple product that’s actually being
launched in the market.
· Apple prevents its rivals from creating a lower priced product.
· Thus, they can charge a premium price.
· Apple owns its chip manufacturers, sells its products in retail stores that are owned by
Apple.
1. Tata Nano:
Idea Generation:

affordable price.
Idea Screening:


Business Analysis:

quality.

Testing:
· Crash Testing
Commercialization:

Market Followers
· Puma filed a lawsuit on Nikhil Thermoplast for using its logo and strip for
a substantial period of time.
· Nikhil Thermoplast used this strip for its products such as jerseys and other
materials and sold it on some e-commerce websites.
· However, for doing this, Nikhil Thermoplast was permanently disallowed
from using strip of Puma (Infringement of Trademark as per Trademarks Act,
1999)
Adapters:

Imitators:
Cloners:

Counterfeiters:
BCG Matrix
Ansoff Matrix:


Examples:
attack is done by offering lower price, better quality product, aggressive advertising, or
better service quality to customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the
challenger with about 9% market share. But by, targeting the product (Snapdragon 800
series processor), price (about half of Samsung), place (flash sales) Xiaomi became the
market leader with 25% market share.
2. Flank Attack: This means attacking the competitors’ weak points. Market challenger
can identify the weak points based on geographic. This means challenger find the area
competitors are under performing and develop marketing strategy to cater that area. Other
than that, they can also challenge the competitors based on segmentation. This is where
challenger identifies the segment that competitors left out and create a product to satisfy
them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by
introducing the colour TV “Sampoorna” for the rural people and outshine the other coloured
TV players who had a less focus on these areas.
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing
the robust, durable, rough and tough outdoor shoes, and hence captured the untapped
market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths
and weaknesses at the same time. Simply put, encirclement attack is the combination of
frontal and the flank attacks.
Eg. Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and
also by promoting that unlike Dettol, Savlon doesn’t sting and smells much better.
Eg. Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing
Maruti Suzuki to do the same
4. Bypass Attack: The Bypass Attack is the most indirect marketing strategy adopted by
the challenging firm with a view to surpassing the competitor by attacking its easier
markets. The firm can adopt any of the three approaches before launching the bypass
attack; they can either diversify into the unrelated products, into the new geographical
markets or leapfrog into the new technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral
water brand, very much before the coke’s Dasani Brand.
Eg. Parle Agro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured
5. Guerrilla Attack: Guerrilla warfare is the marketing strategy adopted by the

challenger firm intended to launch the intermittent attacks with an intention to harass or
demoralize the competitor.
Eg. Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce
websites adopt this strategy by offering deep price cuts certain days a year)
Eg. Dunkin brand used this strategy when it came up with its espresso machines in every
Dunkin US location. Dunkin' has also tweaked its espresso strength and flavour profile,
updated its coffee packaging, and launched a marketing campaign with weekly espresso-
beverage-based promotions running through the end of the year and thus surpassed
Starbucks to become market leader.
PRODUCT LIFE CYCLE
MAGGI ATTA NOODLES

ISSUES
INTRODUCTORY STAGE
· No Competition

Veg Atta Noodles
GROWTH STAGE
sizes, flavours, options
MATURITY STAGE
office-goers. Many consumer products are in Maturity Stage.
DECLINE STAGE
substitute products
Market Nichers
Meera Shampoo:
Manufactured and marketed by Cavinkare in the sachet segment. It has the traditional shihakkai base and is a hugely
herbal product. It is advertised for the special shihakkai context, that lends the hair a very shiny look. This product is
very famous in Tamil Nadu, and in Kerala, as rural folks still like to have the lake bath and then a shampoo which is
traditional in nature. It is not available in this form in most parts of North India, as people out there, do not prefer the
herbal variant. The same company also has a super duper hit product "Nyle" with the traditional chemical base for
North Indian markets. Meera is a classic example of ethnic marketing in Indian context. Ethnic is defined as that
which is pertaining to or characteristic of a people ( group) sharing a common and distinctive culture. Ethnic
marketing is understanding that distinctiveness and adapting product and marketing strategies in order to appeal to
that group. Meera is famous for its herbal hair wash powder. The tradition of using powder hair wash lies in our
culture and tradition. Traditionally Indian women relied on powdered herbs to nourish their hair.
Then along with changing lifestyles, new products like shampoos began to take the place of these herbal powders.
While hair oils have retained their position in the hair care market, the use of hair-wash powder was reduced to a
niche.
It is in this context that Meera as a brand becomes interesting. The brand not only catered to the niche but also has
developed this market and evolved to become an umbrella brand for more traditional hair-care products.
Although there was many companies who were selling powder hair wash, most of these players belong to the
unorganized sector . Shaw Wallace had a similar product but the firm was not promoting that line. Cavinkare began
to aggressively built the brand and Meera became the market leader in that category.
Herbal hair wash product typically consists of powder/essence from Shikakai , green gram, tulsi, veliver, reetha ,
hibiscus ,fenugreek etc.
When time passes by, these traditional products tend to lose relevance . Traditional products fade from the market for
many reasons like
b. No marketing : Because of lack of marketing, many traditional products fade from the consumer's mental space.
In the case of herbal powder market, the products are unattractive to urban market because these are not easy
products. Herbal powders are often messy and the user has to spent lot of time in using the product. In this fast life,
the urban consumers are looking for fast solutions. Meera as a brand has made the choice easy for the consumers.
Instead of using unbranded products, consumers trusted Meera since it came from a well known company. The brand
also is available in sachets thus making it convenient for the consumer to buy the product in smaller quantities.
Meera uses the slogan " Healthy hair for years " highlighting the efficacy of the product.
Buoyed by the success of the hair-wash product, Cavinkare extended Meera into shampoos and soaps.
In 2004, the brand extended itself to the highly lucrative hair-oil market. Indian hair-oil market is worth 1800 crore.
Ø End user specialist: Beardo Beard and Hair growth oil. This is specifically for
those men who want a long beard. Also, another example is Lefty’s San Francisco is
a left-handed retail store that sells school supplies, kitchen goods, and gardening
tools, and many more things for the lefties.
Ø Geographic specialist: Bombay Shaving company is an example of geographic

specialist. It’s production and target audience was initially strictly restricted to the
city of Mumbai.
Ø Customer size specialist: Tree of Life(Hallmark) specializes in only Jewish

greeting card and gifts and celebrates Jewish faith.
Ø Product specialist: UNTUCKit brand has created a new line of products for people
who do not like tucked shirts. It gives you a feel of a tucked shirt without actually
tucking it.
Ø Specific customer specialist: Weber carburettor is a company which provides

carburettors to only high end cars like Porsche, Ferrari, and BMW.

This targeted woman of all age groups. In the olden times, when there widely existed the system of joint families,
women did not have free time for themselves. So, this advertisement in which a woman is bathing under a waterfall
using liril soap, gave all women a sense of free time which they otherwise hardly found in a joint family. So, this
advertisement instantly could connect with all women and thus the brand became a huge success. The Liril ad was
more a reflection of the present and the future. The ad ushered in a new era, and both Indian advertising and mindset
came out of the closets. In the 1970s, Hindustan Lever was introducing a lime soap in India for the first time. It
represented freshness and fun. A consumer survey is said to have given Padamsee the idea for the waterfall scene.
The survey suggested that Indian women only get little time during the day to be by themselves — and bathing was
one of these moments. The shower became the waterfall, and the idea became a memorable ad for decades.
Karen Lunel, the woman bathing and having fun in the ad, continued to be the ‘Liril girl’ for over a decade. She
represented a new India, where wearing a bikini didn’t seem out of the ordinary, and girls could have fun. Lunel was
unabashed and unapologetic about enjoying a bath outside, Bijoor said on how the ad became so popular.
Some in the industry said that the state-run television channel Doordarshan even refused to air it initially and then
decided to fix time slots for the ad.
The ad became so popular that it became a blueprint for the company. Till 2009, Liril ads featured the waterfall and
‘Liril girl’ — Deepika Padukone and Preity Zinta have both starred in the ads.
“The jingles and the taglines were very carefully crafted, whenever you make an ad, it is absolutely critical to
understand the psyche of the people,” Padamsee had told ThePrint in a telephonic interview in September last year.
“Somewhere, you need to be a social scientist to understand what will work.”
Krunal Kathawate - 86
· A customer is a person or company that receives, consumes or buys a product or service and can choose
· A consumer is one that buys good for consumption and not for resale and commercial purpose. The consumer
is an individual who pays some amount of money or the thing required to consume goods and services.
· 1 Example: For a product like Baby Food (Gerber Organic Baby Food) the mother of a child would be the
customer who buys the product but the consumer would be the baby who consumes / eats the product.
· 3 Example: For a products like Children’s Toy (Barbie by Mattel) is bought by the parents of the kids who are
DISTRIBUTION
· Example: E- business (Myntra selling various products)
· Example: Automobile manufacturers selling their cars through authorised dealers ( Maruti Suzuki )
· Example : Vera Moda in lifestyle showrooms
· Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer To Consumer
· Example: The products sold by Hindustan Unilever

o A person see’s a commercial for a new pair of shoes, stimulates his/her recognition that they
need a new pair of shoes.
· A successful information search leaves a buyer with possible alternatives, the evoked set.
· For the search of new pair of shoes, the person would do external search like ask a few friend, do a Google
o Final Decision on which place (store) as well as which type of shoe is decided and the
purchase is made.
o Evaluation if the pair of shoes chosen was actually the right choice and would you go back to
the store for repeat purchase.

· Threat of Rivalry: The number of competitors in the industry in which Reliance Industries
operates are very few. Most of these are also large in size. This means that firms in the industry will
not make moves without being unnoticed. This makes the rivalry among existing firms a weaker force
within the industry. The fixed costs are high within the industry in which Reliance Industries operates.
This makes the companies within the industry to push to full capacity. This also means these
companies to reduce their prices when demand slackens. This makes the rivalry among existing firms
a stronger force within the industry. The exit barriers within the industry are particularly high due to
high investment required in capital and assets to operate. The exit barriers are also high due to
government regulations and restrictions. This makes firms within the industry reluctant to leave the
business, and these continue to produce even at low profits. This makes the rivalry among existing
firms a stronger force within the industry.
· Threat of New Entrants: The product differentiation is strong within the industry, where firms
in the industry sell differentiated products rather a standardised product. Customers also look for
differentiated products. There is a strong emphasis on advertising and customer services as well. All
of these factors make the threat of new entrants a weak force within this industry. The capital
requirements within the industry are high, therefore, making it difficult for new entrants to set up
businesses as high expenditures need to be incurred. Capital expenditure is also high because of high
Research and Development costs. All of these factors make the threat of new entrants a weaker force
within this industry.
· Threat of substitutes: There are very few substitutes available for the products that are produced
in the industry in which Reliance Industries operates. The very few substitutes that are available are
also produced by low profit earning industries. This means that there is no ceiling on the maximum
profit that firms can earn in the industry in which Reliance Industries operates. All of these factors
make the threat of substitute products a weaker force within the industry.The very few substitutes
available are of high quality but are way more expensive. Comparatively, firms producing within the
industry in which Reliance Industries operates sell at a lower price than substitutes, with adequate
quality. This means that buyers are less likely to switch to substitute products. This means that the
threat of substitute products is weak within the industry.
· Bargaining Power of Suppliers: The number of suppliers in the industry in which Reliance
Industries operates is a lot compared to the buyers. This means that the suppliers have less control
over prices and this makes the bargaining power of suppliers a weak force.The product that these
suppliers provide are fairly standardised, less differentiated and have low switching costs. This makes
it easier for buyers like Reliance Industries to switch suppliers. This makes the bargaining power of
suppliers a weaker force.
· Bargaining Power of Buyers: The number of suppliers in the industry in which Reliance
Industries operates is a lot more than the number of firms producing the products. This means that the
buyers have a few firms to choose from, and therefore, do not have much control over prices. This
makes the bargaining power of buyers a weaker force within the industry. The product differentiation
within the industry is high, which means that the buyers are not able to find alternative firms producing
a particular product. This difficulty in switching makes the bargaining power of buyers a weaker force
Pricing Strategies
1) Skimming
· Apple’s mobile phones are priced higher than Samsung, Xiaomi (Read in Skiming)
2) Penetration
· Frito-Lay introduced Stax to the market in 2003. The brand was a direct competitor
to the well-established Pringles line of chips.To draw more business, the company offered
the chips at a steep discount of $0.69 per canister. This earned the brand prominent display
locations at many retailers. When the chips had fully penetrated the market, the price
quickly rose to well above $1.
· Smart Phones : The two major suppliers of smart phones, Samsung and Apple,
follow markedly different pricing strategies. Apple uses a skimming pricing strategy, and
has been able to establish a strong brand loyalty with its customers. This strategy keeps
prices high and never drops or offers any discounts. Apple customers are convinced that
its products are high quality, and each new phone model comes with more exciting
features. And people are willing to pay the steep prices. On the other hand, Samsung is
continuously offering Android phones at introductory prices and discounts, hoping to
build brand loyalty. Samsung also partners with cell-phone companies to provide Android
phones at cheap prices in exchange for commitments to long-term contracts. Consumers
get enticed by the low prices and overlook the cost of the terms of the contract.
· A combination of rich product assortment and making it available at everyday low

price (EDLP) is DMART’s winning formula in value retailing. For EDLP, the company
focuses on everyday low cost (EDLC)
· Big Basket
4) Surge Pricing
· Higher price of Travels services or bus services/Flight services on days near festive
seasons
5) Discount Pricing
· Customer Value Discounts - A 15%-off coupon for first-time customers to get them
Garnier for Rs.300.
7) Loss Leadership
· One popular example of this is a razor with disposable blades. Often, a store will
price the razor very low, but armed with the knowledge that the consumers with need to
purchase new blades, refill sets are over-priced to increase profits

· Position Defence : Parle G, Gillete Razor, Dettol Hygiene (Superior brand power
makes them impregnable)
· Flank Defense : Nestle India rolling put 2 minute Maggie noodles to appeal to
young people under the brand hot heads
· Pre-emptive defense : Ola introducing Ola shuttle service to outsmart Uber i.e. it’s
competitor in September 2015
· Counter offensive Defense : Starbucks launching Alfonso Mango Frapuccino to

compete with other coffee brands
· Mobile Defence : KFC Chizza a pizza with no base but only chicken as it’s crust,
Coke with VIO flavoured Milk
· Contraction Defense : Pepsi Atom positioned as strong, fiest to counter Coca Cola’s
thumps up. Also, Maruti Kizashi Sedan was withdrawn after failing to impress


Differentiation
1. Samsung:

aged people
Students, employees and

Occupation professionals.
loyals, switchers.
Sense of belongingness,
Benefits sought advanced features, overall
high quality
Potential users, non-users,

User status users
explorers
Lifestyle
Positioning:
· All the products come under the name Samsun electronics which is an umbrella approach in its
· Samsung had innovative features like value for money, integral part of family, energy efficiency.
Differentiation:
· It uses combined cost leadership and differentiation strategy by offering unique benefits in a product
and thus delivering a lower priced product than Apple.
1. Tata Nano:
Idea Generation:

affordable price.
Idea Screening:


Business Analysis:
quality.

Testing:
· Crash Testing
Commercialization:

Market Followers

· Puma filed a lawsuit on Nikhil Thermoplast for using its logo and strip for a substantial period of
time.
· Nikhil Thermoplast used this strip for its products such as jerseys and other materials and sold it
on some e-commerce websites.
· However, for doing this, Nikhil Thermoplast was permanently disallowed from using strip of
Puma (Infringement of Trademark as per Trademarks Act, 1999)
Adapters:

Imitators:
· Footwears
Cloners:

· Gucci and Gucca
· Tide and Tied
Counterfeiters:

· DVD Piracy
BCG Matrix
Ansoff Matrix:


Examples:
1. Frontal Attack: This is a direct attack based on the competitors’ strength. Usually the attack is done by offering
lower price, better quality product, aggressive advertising, or better service quality to customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the challenger with about 9%
market share. But by, targeting the product (Snapdragon 800 series processor), price (about half of Samsung), place
(flash sales) Xiaomi became the market leader with 25% market share.
points based on geographic. This means challenger find the area competitors are under performing and develop
marketing strategy to cater that area. Other than that, they can also challenge the competitors based on segmentation.
This is where challenger identifies the segment that competitors left out and create a product to satisfy them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by introducing the colour TV
“Sampoorna” for the rural people and outshine the other coloured TV players who had a less focus on these areas.
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing the robust, durable,
rough and tough outdoor shoes, and hence captured the untapped market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths and weaknesses at the same
time. Simply put, encirclement attack is the combination of frontal and the flank attacks.
Eg. Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and also by promoting that
unlike Dettol, Savlon doesn’t sting and smells much better.
Eg. Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing Maruti Suzuki to do the
same
approaches before launching the bypass attack; they can either diversify into the unrelated products, into the new
geographical markets or leapfrog into the new technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral water brand, very much
before the coke’s Dasani Brand.
Eg. Parle Agro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured carbonated soft drink
5. Guerrilla Attack: Guerrilla warfare is the marketing strategy adopted by the challenger firm intended to launch
the intermittent attacks with an intention to harass or demoralize the competitor.
Eg. Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce websites adopt this strategy by
offering deep price cuts certain days a year)
Eg. Dunkin brand used this strategy when it came up with its espresso machines in every Dunkin US location.
Dunkin' has also tweaked its espresso strength and flavour profile, updated its coffee packaging, and launched a
marketing campaign with weekly espresso-beverage-based promotions running through the end of the year and thus
surpassed Starbucks to become market leader.
PRODUCT LIFE CYCLE
MAGGI ATTA NOODLES

ISSUES
INTRODUCTORY STAGE
· No Competition

Veg Atta Noodles
GROWTH STAGE
sizes, flavours, options
MATURITY STAGE
office-goers. Many consumer products are in Maturity Stage.
DECLINE STAGE
substitute products
Market Nichers
Meera Shampoo:
Manufactured and marketed by Cavinkare in the sachet segment. It has the traditional shihakkai base and is a hugely
herbal product. It is advertised for the special shihakkai context, that lends the hair a very shiny look. This product is
very famous in Tamil Nadu, and in Kerala, as rural folks still like to have the lake bath and then a shampoo which is
traditional in nature. It is not available in this form in most parts of North India, as people out there, do not prefer the
herbal variant. The same company also has a super duper hit product "Nyle" with the traditional chemical base for
North Indian markets. Meera is a classic example of ethnic marketing in Indian context. Ethnic is defined as that
which is pertaining to or characteristic of a people ( group) sharing a common and distinctive culture. Ethnic
marketing is understanding that distinctiveness and adapting product and marketing strategies in order to appeal to
that group. Meera is famous for its herbal hair wash powder. The tradition of using powder hair wash lies in our
culture and tradition. Traditionally Indian women relied on powdered herbs to nourish their hair.
Then along with changing lifestyles, new products like shampoos began to take the place of these herbal powders.
While hair oils have retained their position in the hair care market, the use of hair-wash powder was reduced to a
niche.
It is in this context that Meera as a brand becomes interesting. The brand not only catered to the niche but also has
developed this market and evolved to become an umbrella brand for more traditional hair-care products.
Although there was many companies who were selling powder hair wash, most of these players belong to the
unorganized sector . Shaw Wallace had a similar product but the firm was not promoting that line. Cavinkare began
to aggressively built the brand and Meera became the market leader in that category.
Herbal hair wash product typically consists of powder/essence from Shikakai , green gram, tulsi, veliver, reetha ,
hibiscus ,fenugreek etc.
When time passes by, these traditional products tend to lose relevance . Traditional products fade from the market for
many reasons like
b. No marketing : Because of lack of marketing, many traditional products fade from the consumer's mental space.
In the case of herbal powder market, the products are unattractive to urban market because these are not easy
products. Herbal powders are often messy and the user has to spent lot of time in using the product. In this fast life,
the urban consumers are looking for fast solutions. Meera as a brand has made the choice easy for the consumers.
Instead of using unbranded products, consumers trusted Meera since it came from a well known company. The brand
also is available in sachets thus making it convenient for the consumer to buy the product in smaller quantities.
Meera uses the slogan " Healthy hair for years " highlighting the efficacy of the product.
Buoyed by the success of the hair-wash product, Cavinkare extended Meera into shampoos and soaps.
In 2004, the brand extended itself to the highly lucrative hair-oil market. Indian hair-oil market is worth 1800 crore.
Ø End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a long
Ø Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production
Ø Customer size specialist: Tree of Life(Hallmark) specializes in only Jewish greeting card and gifts and
Ø Product specialist: UNTUCKit brand has created a new line of products for people who do not like tucked
Ø Specific customer specialist: Weber carburettor is a company which provides carburettors to only high
end cars like Porsche, Ferrari, and BMW.

This targeted woman of all age groups. In the olden times, when there widely existed the system of joint families,
women did not have free time for themselves. So, this advertisement in which a woman is bathing under a waterfall
using liril soap, gave all women a sense of free time which they otherwise hardly found in a joint family. So, this
advertisement instantly could connect with all women and thus the brand became a huge success. The Liril ad was
more a reflection of the present and the future. The ad ushered in a new era, and both Indian advertising and mindset
came out of the closets. In the 1970s, Hindustan Lever was introducing a lime soap in India for the first time. It
represented freshness and fun. A consumer survey is said to have given Padamsee the idea for the waterfall scene.
The survey suggested that Indian women only get little time during the day to be by themselves — and bathing was
one of these moments. The shower became the waterfall, and the idea became a memorable ad for decades.
Karen Lunel, the woman bathing and having fun in the ad, continued to be the ‘Liril girl’ for over a decade. She
represented a new India, where wearing a bikini didn’t seem out of the ordinary, and girls could have fun. Lunel was
unabashed and unapologetic about enjoying a bath outside, Bijoor said on how the ad became so popular.
Some in the industry said that the state-run television channel Doordarshan even refused to air it initially and then
decided to fix time slots for the ad.
The ad became so popular that it became a blueprint for the company. Till 2009, Liril ads featured the waterfall and
‘Liril girl’ — Deepika Padukone and Preity Zinta have both starred in the ads.
“The jingles and the taglines were very carefully crafted, whenever you make an ad, it is absolutely critical to
understand the psyche of the people,” Padamsee had told ThePrint in a telephonic interview in September last year.
“Somewhere, you need to be a social scientist to understand what will work.
Janvi Shetty - 113

• A customer is a person or company that receives, consumes or buys a product or service and can choose
• A consumer is one that buys good for consumption and not for resale and commercial purpose. The
consumer is an individual who pays some amount of money or the thing required to consume goods and services.
• Example: For a products like Children’s Toy (Barbie by Mattel) is bought by the parents of the kids who are
DISTRIBUTION
• Zero Level Channel – Manufacturer To Consumer
• Example: E- business (Myntra selling various products)
• One Tier Channel -- Manufacturer To Retailer To Consumer
• Example: Automobile manufacturers selling their cars through authorised dealers ( Maruti Suzuki )
• Two Tier Channel -- Manufacturer To Distributor/Agent To Retailer To Consumer
• Example : Vera Moda in lifestyle showrooms
• Three Tier Channel -- Manufacturer To Wholesaler To Distributor/Agent To Retailer To Consumer
• Example: The products sold by Hindustan Unilever
• PROBLEM RECOGNITION
o A person see’s a commercial for a new pair of jeans, stimulates his/her recognition that they need a new pair
of jeans.
• INFORMATION SEARCH
o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated
sources; comparison shopping; public sources etc.
• A successful information search leaves a buyer with possible alternatives, the evoked set.
• For the search of new pair of jeans, the person would do external search like ask a few friends, do a Google
• EVALUATION OF ALTERNATIVE
• PURCHASE DECISION
• Final Decision on which place (shop) as well as which type jean is decided and the purchase is made.
• POST PURCHASE EVALUATION
o Evaluation if the pair of jeans chosen was actually the right choice and would you go back to the store for
repeat purchase.

1) Coca Cola
• Threat of Rivalry : There are two major players in the soda industry and they are Coca Cola and Pepsi. There
is intense rivalry between the two major players. There are a few smaller players too but they do not pose a major
competitive threat. The two main players are nearly of the same size and they have similar products and strategies.
The level of differentiation between the two brands is also low and therefore the price competition is intense. People
have already heard of the Cola wars. So, the level of competitive rivalry between the existing firms is a strong force.
• Threat of New Entrants : In the beverages industry there are several factors that discourage new brands from
entering. Growing a brand overnight is impossible. There are significant investments to be made. From operations to
marketing every part requires a large investment. Some local brands may start it at smaller scale and still marketing
and hiring qualified staff requires generous investment. The level of customer loyalty in the industry is moderate and
for any brand to build customer loyalty it will take some time. So, while new entrants can compete with brands like
Coca Cola at a smaller or local level, to build a brand as big is a mammoth task requiring both capital and skilled
human resources.
• Threat of substitutes : Main substitutes of Coca Cola products are the beverages made by Pepsi, fruit juices,
and other hot and cold beverages. The number of substitutes of Coca Cola products is high. There are several juices
and other kinds of hot and cold beverages in the market. The switching costs are low for the customers. Apart from
it, the quality of the substitute products is also generally good. So, based on these factors the threat from substitutes
is strong.
• Bargaining Power of Suppliers : The bargaining power of suppliers of Coca Cola is weak. It is so because the
number of suppliers is high and the switching costs for Coca Cola low. While Coca Cola can easily switch from one
supplier to another, it is not possible for any supplier to switch away from Coca Cola as easily. That can lead to
losses for any of the suppliers. While there are several suppliers, the size of individual suppliers is small or
moderately large. Moreover, forward integration is a distant possibility for most of its suppliers. Even if there are no
substitutes for raw materials like sugar, the number of suppliers is still high. So, the main factors that have come to
light regarding the bargaining power of suppliers are: Large number of suppliers. Small to moderately large size of
individual suppliers.. Forward integration difficult for the suppliers.. Switching costs for Coca Cola not so high
• Bargaining Power of Buyers : The bargaining power of individual customers in case of Coca Cola is low.
Individual customers generally buy small volumes and they are not concentrated in specific markets either. However,
the level of differentiation between Pepsi and Coca cola is low. Mostly they sell similar flavors. Switching costs are
not high for customers and still the two brands enjoy high brand loyalty. The customers of coca cola are not price
sensitive. Backward integration is not a possibility for the customers whether it is an individual customer or a large
retailer. If a retailer acquires some bargaining power then it is only because it buys in large volumes. Still, overall the
customers’ bargaining power is weak.
Pricing Strategies
1) Skimming
• Apple’s mobile phones are priced higher than Samsung, Xiaomi (Read in Skiming)
• Chocolates like Bournville, Dairy Milk silk priced higher
2) Penetration
• Smart Phones : The two major suppliers of smart phones, Samsung and Apple, follow markedly different
pricing strategies. Apple uses a skimming pricing strategy, and has been able to establish a strong brand loyalty with
its customers. This strategy keeps prices high and never drops or offers any discounts. Apple customers are
convinced that its products are high quality, and each new phone model comes with more exciting features. And
people are willing to pay the steep prices. On the other hand, Samsung is continuously offering Android phones at
introductory prices and discounts, hoping to build brand loyalty. Samsung also partners with cell-phone companies to
provide Android phones at cheap prices in exchange for commitments to long-term contracts. Consumers get enticed
by the low prices and overlook the cost of the terms of the contract.
Apple sell expensive phones to a small market, while Samsung sells a high volume of phones to a broader consumer
base.
• Big Bazaar
• Big Basket
4) Surge Pricing
• Higher price of Travels services or bus services/Flight services on days near festive seasons
• Apparel industry during peak season like and fbb or a a shopping mall
5) Discount Pricing
• Customer Value Discounts - A 15%-off coupon for first-time customers to get them interested such as a
ZOMATO or Google pay offering Cashnack
• Seasonal Discounts – Independence day, Diwali Sales, Christmas Blast
• Bundle Discounts – Buy one get one free
• L’Oreal is a great example, providing the public with three different segments at different prices. They have
positioned themselves in the luxury market, professional market, and consumer market, allowing open purchasing
throughout. They give consumers the option to buy Kiehl’s Shampoo for Rs.2500, Redken for Rs.1500 or Garnier for
Rs.300.
• Artificial Time Constraints on E commerce saying HURRY UP, ONLY 3 LEFT
• Charm Pricing : 999 is better than 1000
• Innumeracy - “Buy one get one free” or “50% off a two items?” Both are the same deal but research has
shown that most people would prefer the first option, even though the two options are identical. This phenomenon is
known as innumeracy
• Price Appearance : Higher price , higher quality (Apple phones)
7) Loss Leadership
• HP printers. HP may sell printing machines free of cost. Seeing this offer everybody will rush to the markets
and get the machine. But in order to make printing machine work, customers need to buy cartridges which are sold
separately at such higher prices that even compensates for the loss of selling printing machines for free.
• One popular example of this is a razor with disposable blades. Often, a store will price the razor very low,
but armed with the knowledge that the consumers with need to purchase new blades, refill sets are over-priced to
increase profits
• Mercedes India – Geographical Expansion where Benz targets Tier 2 and 3 cities
• Cadbury Dairy Milk instead of just birthday celebrations, using taglines PAPPU PASS HOGYA and
SHUBH ARAMBH to expand
• Position Defence : Parle G, Gillete Razor, Dettol Hygiene (Superior brand power makes them impregnable)
• Flank Defense : Nestle India rolling put 2 minute Maggie noodles to appeal to young people under the brand
hot heads
• Pre-emptive defense : Ola introducing Ola shuttle service to outsmart Uber i.e. it’s competitor in September
2015
• Counter offensive Defense : Starbucks launching Alfonso Mango Frapuccino to compete with other coffee
brands
• Mobile Defence : KFC Chizza a pizza with no base but only chicken as it’s crust, Coke with VIO flavoured
Milk
• Contraction Defense : Pepsi Atom positioned as strong, fiest to counter Coca Cola’s thumps up. Also, Maruti
Kizashi Sedan was withdrawn after failing to impress
• Apple, Hero MotoCorp, Parle G
1. Xiaomi:
Geographic Region
Density 70 Countries worldwide
Urban & rural
Demographic Age
Gender
Life cycle stage
Occupation 18 to 65
Males & Females
Bachelors, Newly married, aged people
Students, employees and professionals.
Behavioral Degree of loyalty
Benefits sought
User status Hardcore loyals, softcore loyals, switchers.
Cost attractiveness
Potential users, non-users, first time users, regular users
Psychographic Social Class

Lifestyle All classes
Mainstreamer, succeeders, explorers, strugglers.
Positioning:
• Inspite of being a Chinese company, it has established itself as a good quality product at a low price
• They have provided the best battery life by understanding the need of Indian customers.
• Created a situation of scarcity with Flash Sales
• They have acquired 57% market share in less than 3 years.
Differentiation:
• Premium specifications with a lower price
• Exclusive partnership with Flipkart and flash sales on its websites where phones were sold out within
seconds.
• In September 2014, 40,000 pieces were sold in 4.2 seconds (Redmi 1S Model).
• 500 service centers in India for after sales service.
1. Tata Nano:
Idea Generation:
• To create safe, affordable, all weather form of transport to a family.
• To create an option for people who want to move from 2 wheeler to a 4 wheeler at affordable price.
Idea Screening:
• A scooter with 2 extra wheels at the back for extra stability?
• An auto rickshaw with 4 wheels?
• 4 wheeled rural car?
• But market wanted a car and it should be like a car.
• Mr. Girish Wagh talked with the customers.
• 3 wheeler drivers inevitably insisted on cheap and dependable trucks
• But he kept asking ,” Why do you want a 4 wheeler?”
• Finally he got an answer saying that if I had a 4 wheeler, I would have better marriage prospects in my
village.
• Thus, 4 wheels have emotional appeal and not just practical
• Car to cost Rs.1 lakh on road
• Car to be built on different platforms than the conventional ones
• It must meet all safety and regulatory requirements.
• A truly people’s car: Low cost, safe and fuel efficient.
Business Analysis:
• What makes nano so cheap?
• Reduction in the number of non-essential parts
• Redesigning essential parts to lower cost and maximize functionality without reducing quality.
• Weight reduction wherever possible
• Three lug nuts instead of the usual four.
• Same dashboard can be used for Right hand as well as Left Hand drive models.
• Nano is constructed of components that can be built and shipped separately to be assembled in a variety of
locations.
• Use of aluminum engine to reduce weight and costs.
• Use of light weight steel wherever possible
Testing:
• Crash Testing
• Testing on torture tracks
Commercialization:
• Tata Nano was launched in 2008.
• It was promoted using advertisement through various mediums.
• The cost of the car was Rs. 1 lakh
Market Followers
• Akash Arora adopted the domain name of Yahoo on his website “yahooindia.com”
• It offered similar services like Yahoo and attempted to cash in on the goodwill used by Yahoo.
• People could not differentiate between Yahoo and Yahooindia
• Hence, Yahoo sued Akash Arora for using similar domain name as it offered same services like Yahoo.
• This was a case of copying the trademark of domain name Yahoo and Akash Arora was held liable for it and
had to pay the respective damages under Trademarks Act, 1999.
Adapters:
• Britannia Good day launched in 1986 (33% market share)

• Parle 2020 launched in 2008 (18-20% market share)
• Dish TV launched in 2004
• Tata Sky launched in 2006
Imitators:
• Imitation jewelry
• Footwears
Cloners:
• Colgate and Cooolgate
• Bisleri and Bilseri
• Gucci and Gucca
• Tide and Tied
Counterfeiters:
• Samsung phones are counterfeited in Bangkok
• DVD Piracy
BCG Matrix
multiple lines of products, the BCG analysis becomes very important. At a holistic level, they get to make a decision
on which product to continue and which product to be divested. Which product can give new returns with good
investment, and which products are reaching the apex of market share.
• Cash Cows – High market share but low growth rate (Most profitable).
• Stars – High market share and High growth rate (High competition).
• Question marks – Low market share and high growth rate (Uncertainty).
• Dogs – Low market share and low growth rate (Less profitable or may even be negative profitability)
Ansoff Matrix:
Examples:
1. Frontal Attack: This is a direct attack based on the competitors’ strength. Usually the attack is done by
offering lower price, better quality product, aggressive advertising, or better service quality to customers.
Eg: In 2016 Samsung was the market leader with 24% market share and Xiaomi was the challenger with about 9%
market share. But by, targeting the product (Snapdragon 800 series processor), price (about half of Samsung), place
(flash sales) Xiaomi became the market leader with 25% market share.
points based on geographic. This means challenger find the area competitors are under performing and develop
marketing strategy to cater that area. Other than that, they can also challenge the competitors based on segmentation.
This is where challenger identifies the segment that competitors left out and create a product to satisfy them.
Eg. Geographic: L.G(then the challenger) has successfully made use of this strategy by introducing the colour TV
“Sampoorna” for the rural people and outshine the other coloured TV players who had a less focus on these areas.
Segmentation: Woodland outflanked the other big players, Viz Bata, Liberty by introducing the robust, durable,
rough and tough outdoor shoes, and hence captured the untapped market segment.
3. Encirclement Attack: This means attacking the competitors based on their strengths and weaknesses at the
same time. Simply put, encirclement attack is the combination of frontal and the flank attacks.
Eg. Savlon attacked Dettol by encirclement. It attacked by drastically reducing price and also by promoting that
unlike Dettol, Savlon doesn’t sting and smells much better.
Eg. Car makers Hyundai, Honda, Renault launches vehicles in different segments, forcing Maruti Suzuki to do the
same
approaches before launching the bypass attack; they can either diversify into the unrelated products, into the new
geographical markets or leapfrog into the new technology.
Eg. The Pepsi used the bypass attack against Coke by launching the Aquafina, mineral water brand, very much
before the coke’s Dasani Brand.
Eg. Parle Agro, the makers of Frooti, launched CAFE CUBA, India's first coffee flavoured carbonated soft drink
5. Guerrilla Attack: Guerrilla warfare is the marketing strategy adopted by the challenger firm intended to
launch the intermittent attacks with an intention to harass or demoralize the competitor.
Eg. Flipkart's Big Billion Day to demoralise SnapDeal (Price Discount - ECommerce websites adopt this strategy by
offering deep price cuts certain days a year)
Eg. Dunkin brand used this strategy when it came up with its espresso machines in every Dunkin US location.
Dunkin' has also tweaked its espresso strength and flavour profile, updated its coffee packaging, and launched a
marketing campaign with weekly espresso-beverage-based promotions running through the end of the year and thus
surpassed Starbucks to become market leader.
PRODUCT LIFE CYCLE
MARUTI 800
Introductory Stage(1983-1986):
-Maruti 800 first launched in Indian Market in December 1983.

-It’s a collaboration between Indian State owned Maruti and Suzuki motor Japan.
-It was the most economical car in the Indian market.
-The first car was sold to Harpal Singh for Rs.48,000/- and received the keys from the then Indian Prime Minister
Indira Gandhi.
Growth Stage(1987-1996):
-It came up with new features like the AC version and music systems in the car which was a novelty.
-Sales increased by 852 units to 31,314 units.
-First export began in 1857.
Maturity Stage(1997-2002):
-Launched revamped version of Maruti 800 X with new engine, shock absorbers, coil spring suspensions, but this
model lost their sales gradually.
-Entry of competitors such as Tata, Ford, General Motors made life tough for the 800.
Decline Stage(2002-Present):
-Due to heavy competition from competitors like Hyundai i10, Chevrolet Spark and Maruti Suzuki Swift, sales of
Maruti 800 drastically decreased.
-Buyers attracted to better luxury small cars available in the market.
-Minimal sales existent in rural and semi-urban areas.
-In 2012, Maruti introduces Alto 800 in place of the 800.
Market Nichers
Mysore Sandal Soap
During World War I, the exports were stopped and the reserves of sandalwood piled up. The solution was to use
them to extract sandalwood oil. To this end, in 1916, the Government Sandalwood Oil Factory was established by
the Maharaja of Mysore, His Highness Nalwadi Krishna Raja Wodeyar and Diwan Sir M Visvesvaraya.
In 1918, when the Maharaja received a gift pack containing soaps made using sandalwood oil, the idea of using the
natural sandalwood oil for making soap was born. To put this into action, SG Shastry, a qualified industrial chemist,
was sent to London for advanced training in soap and perfumery technology. On his return, he developed a sandal
perfume. This marked the beginning of the era of the Mysore Sandal Soap.
This was the first indigenous soap produced in the country with sandalwood as the base fragrance; it is also the only
soap in the world made from 100 per cent pure sandalwood oil (while it contains other vegetable oils like clover leaf,
vetiver, patchouli and orange, there is no animal fat). The soap has 80 per cent TFM (Total Fatty Matter) which
indicates that it is of the highest quality.
As sales increased, the production capacity was enhanced and in 1944, a second plant was established in Shimoga to
extract sandalwood oil. By 1965, the company was exporting its products. In 1980, the Government Soap Factory
became a public sector enterprise and was renamed KSDL.
Mysore Sandal Soap has a unique place in the Indian Soap market. This soap with a history dating from 1918 has
survived in a market which is witnessing cut throat competition. Mysore Sandal Soap is manufactured by the Public
sector company : Karnataka Soaps &Detergents ltd ( KSDL). Although this is a product from public sector, the brand
has been able to create a unique place in the Indian consumer's mind. In the Rs 4500 crore Indian soap market, this
brand has a minuscule share of only 80 crore that is 2%. The brand can be said to be a niche brand in the premium
soap category. The brand typically faces the problem that all heritage brands faces, that is to stay relevant to the new
generation.Mysore Sandal is facing the issue that its loyal users are getting older and the new generations are moving
to more visible brands. Those who have used this brand will vouch for its quality and fragrance. The KSDL has
developed new varieties of sandalwood soap during the last couple of years. Besides Mysore Sandal Gold soap, it has
introduced into the market the Mysore Sandal Millennium Luxury Soap, which was launched in 2013 priced at Rs
720 for a 150 gm cake.
Meanwhile, the ‘Soap Santhe’ of the KSDL has been receiving good response with more customers visiting the
Nanjaraja Bahadhur Choultry in Mysuru to make a choice selection from among the state government-run products.
Its products are now being promoted by organising annual ‘Soap Santhe’ to expand its reach. In all, 38 different
products, ranging from soaps, sandal oil, incense sticks, detergents and cosmetics are being showcased and marketed
at the ongoing fair in Mysuru. According to research, in both urban and rural markets, the Mysore Sandal soap (basic
variant) is the predominantly preferred soap. Next is the Mysore Sandal Classic soap, which is at the second position.
The other fast moving variant is the Mysore Sandal Gold Soap.
beard. Also, another example is Lefty’s San Francisco is a left-handed retail store that sells school supplies, kitchen
goods, and gardening tools, and many more things for the lefties.
Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production and
Customer size specialist: Tree of Life(Hallmark) specializes in only Jewish greeting card and gifts and
cars like Porsche, Ferrari, and BMW.
Humara Bajaj Advert: Bajaj Auto’s move from ‘Hamara Bajaj’ to ‘The World’s Favourite Indian’ to announce its
dramatic transition from a domestic scooter maker to a global motorcycle powerhouse merits a look at the brand’s
journey from its good old days till now.
Bajaj Auto’s Hamara Bajaj ushered in a brand of advertising that was never tried before. One look at the ad and one
could see that it presents a mirror to the old middle-class aspirations. No wonder, the brand slogan was ubiquitous for
the longest of time.
Bajaj Auto Ltd now marches ahead with their revamped repositioning and their advertising communication for the
same.
So when ‘Buland Bharat ki Buland Tasveer’ hit the screen in 1989, it was still the pre-liberalisation era and forging a
nationalistic identity in a campaign was quite common. But in 2001 the ‘Hamara Bajaj - Naya Hain Kal’ commercial
reflected a strategic shift. By 2004, Bajaj was entrenched as a motorcycle company and the India story was global.
The umbrella brand gave birth to the individual communication one sees on television and elsewhere. Showing a
montage of daily life, it advocated taking pride in an Indian brand. At a time before the Internet, mobile phones and
360-degree coverage, the creative work reached out in such a simple, endearing way, and yet carried such a strong
message for the brand.
A proud Indian brand, Bajaj Auto gently reminded India of its Indianness in the face of a slew of foreign products
invading the Indian two-wheeler market and creating an iron-hard positioning and brand value for it. It became so
popular that at one time the scooters had a waiting list of almost 10 years. With a dramatic transition to ‘The World’s
Favourite Indian’, the new brand identity has been communicated through a marketing campaign, featuring TV,
outdoor, print and digital media. The retail showrooms of Bajaj Auto motorcycles and commercial vehicles will also
undergo a transformation with new signage and branding in line with the message of ‘The World’s Favourite Indian’.
Having seen significant success in the overseas market, the brand seems to have adopted the revamped brand
identity. Building on its ‘Hamara Bajaj’ roots of providing trusted and reliable mobility solutions, the company has
significantly invested in technology and innovation to design motorcycles that are loved not only in India but 70
countries around the world. Of the company’s total revenue, 40 per cent comes from the international markets. It has
earned US $13 billion of forex in the last 10 years and hit a milestone of 2 million units of international sales in
2018.
Shrutika Sarda
Roll No. 109
PGDM-2
● customer is the person who buys the goods or services

● Consumers use the products or services they buy
● A bank is a good example. Someone might come in to the bank, but he does not have an account at this bank.
However, he does have a check made out to him from a customer of this bank. He is not a customer of this bank, but he
is a consumer of this bank, and wants to cash a check made out to him by a bank account holder; this person is a consumer
because they really don't have any relationship with the bank. The person who has basic bank accounts and comes in
periodically to deposit or withdraw money is a customer; this person might not have had extensive conversations with the
bank employees.
Maggi
• Introduced in 1982
• Nestle brand of Instant soups, ketchup & noodles
• Brand element of name, signature, colour ,size ,tagline, packaging
• Failure of noodles happen due to huge amount of lead in it which is harmful for customers and later on they improved and
check what was their fault and then noodles was again launch in market which was healthy and will not affect the customers
• Launch the cup noodles which is easy for people to carry in bag or for travelling purpose
Pricing Strategies:
1. Penetration pricing: In jio, earlier it was free to induce trials but now for every call to Vodafone and airtel they pay 6
paisa per call.
2. Price skimming: Apple, because of product differentiation, gradually decrease the price as the competition product
copies the same and sells in cover price.
3. Psychographic pricing: Bata found that customers are more likely to purchase items without zeros at the end. So they
started pricing the products without zero ending. For eg : 299
5. Captive product pricing: HP printer is for 11000 and comparatively reasonable. But the cartage, that should be replaced
after a certain time, charges more, around 6000.
6. Segmentation pricing: HUL products have 20 soap products and everyone costs different, as they are all based on
segmentation. Dove and Lux.
8. Geographical pricing: Nandini milk in south costs of Rs.56 and outside south it costs around Rs66.
9. Aggressive pricing strategy: TATA jeep was expected to launch at 16lakhs but was its actual price was out at 14lakhs.
Distributor:
The MRP is Rs. 191. The company first sells it to the distributor, who at a margin of about 8% sells it to the wholesaler who then
with a margin of about 10% sells it to the retailer. Finally the retailer sells it to the customer at a margin of about 12%. So, the
prices in rupees of the different elements of the supply chain are as follows:
Consumer Rs 191
Particulars Rs
COGS 278000
Transport 900
Rent 2000
Salary 800
Other expenses 100
Profit 20800
● “Airtel” – airtel was always the top most. Aitel cannot grow only on the base of telecom. Therefore they started
data service. This was done from segmentation, they focused on youth. Especially the characteristics of the youth.
Social has many friends, but in real very few.
● When you get addicted to data, the next step is ‘share’. ‘jo tera hai vo mera hai’ for internet.
AND
● Liril advertisement: This basically targeted women of all age groups. In the olden times, when there widely existed
the system of joint families, women did not have free time for themselves. So, this advertisement in which a woman is
bathing under a waterfall using liril soap, gave all women a sense of free time which they otherwise hardly found in a
joint family. So, this advertisement instantly had a connect with all women and thus the brand become a huge success.
● ICICI Advertisement (Bande Ache Hai): This advertisement is a classic example of Segmentation. It particularly
targets all men who are the bread owners of their family. This advertisement shows through various situations how
selfless and caring all men are towards their family.
STPD
● LUX : HUL
Segmentation:
1. Geographical: India, Thailand, South Africa, Pakistan, China, Canada, Western Europe, Srilanka,
Bangladesh.
2. Demographic: Female (16-35)
Affordable
3. Behavioural: inter-market segmentation (forming segments of consumer who have similar needs and
buying behaviour even though they are located in different countries). Reliable and trustworthy.
4. Psychographic: all the class as it is affordable. Appreciate beauty and glamour.
BCG Matrix
Tata Group
● STAR:
● CASH COW :
- Tata Power
- Tata Tea
- Tata Salt
● DOG:
- Passenger car vehicles ( 10% market share, where the market leader is Maruti with with market share of
45%)
- Tata real estate
● QUESTION MARK:
- Tata Communication (7 % Market share , at 7th position)
- Tata Sky
-
Ansoff matrix
Ansoff matrix for Reliance
● Penetration :
- Tata Motors
- Tata Bearings
- Tata tubes
- Tata wiron
● Product development
- Steel coils
- Corrugated steel
● Market Development
● Diversification
-
Porters 5 forces
● Competitive Rivalry – High :

- Facing Competition from many other numerous brandsa like Knorr, Sunfeatst
- Market share hjad been declined due to ban which benefited other competitors
● Threat of new Entrant – High :
● Bargaining power of supplier – Low :
● Bargaining power of Buyers – High :
- Buyers can switch from one brand to another in no time, Hence switching cost for buyers is low which
is a threat for Maggie
● Threats of Substitute – High :
Product life Cycle

Introduction - Low pricing - - “ Bas
Product strategy for Producer-> 2 Minutes “
launched making Distributor - Instant
keeping in product > Retailer -> noodles
mind the affordable Consumer
working -
women and Promotion
children focused on
awareness
- No and
competition information
Growth No Changes in Rapidly Campaigning in “ Good to eat fast to

product rising sales school cook “
Tried changing Rising profits

masala formula in
1997, but reverted Prices were
the changes soon kept normal
Maturity Introduced wide Sales at peak Intensive “ taste bhi, Health

variety of flavours distribution, bhi “
like atta noodles, Profits are
Chicken noodles, high Maintained good
cuppa maggie relation with
Cost per channel partners
customer low
Prices were
affordable,
But reduced
the quantity
Decline Found presence of Still Low Reduced distribution Copmeback

Lead in the Maggie campaign
which lead to loss of
trust among
customers
Consumer behaviour
Process :
Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty winter coat if she’s going to
survive the snow and lower temperatures.
b) Information Search :
The customer searches “women’s winter coats” on Google( Public search) to see what options are out there. When she sees
someone with a cute coat, she asks them where they bought it(Personal Search) and what they think of that brand(Experiences
Search).
The customer compares a few brands that she likes. She knows that she wants a brightly coloured coat that will complement the
rest of her wardrobe, and though she would rather spend less money, she also wants to find a coat made from sustainable
materials.
d) Purchase
The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand uses sustainable materials and
asking friends for their feedback, she orders the coat online.

f) Did the purchase meet the need the consumer identified?
g) Is the customer happy with the purchase?
h) How can you continue to engage with this customer?
● Beauty care
Deodorants- Old spice, Secret sure
Hair care- Head and Shoulders, Pantene
Skin care- Camay, Ivory, Clearsil, Noxzema, safeguard
● Food and beverages
● Health care
Vitamin c drops, Vicks, Vaporub, DayQuil, crest
● Laundry
Bleach: biz
Dish care: cascade, dawn, ivory dish, joy
Hard surface cleansers: comet, mr. clean, spic and span
Laundry: tide
● other
Pampers, tampax
● Market Nicher:
1. End user specialist: Beardo Beard and Hair growth oil. This is specifically for those men who want a long beard. Also,
another example is Lefty’s San Francisco is a left-handed retail store that sells school supplies, kitchen goods, and
gardening tools, and many more things for the lefties.
2. Geographic specialist: Bombay Shaving company is an example of geographic specialist. It’s production and target
audience was initially strictly restricted to the city of Mumbai.
3. Customer size specialist: Tree of Life(Hallmark) specializes in only jewish greeting card and gifts and celebrates jewish
faith.
4. Product specialist: UNTUCKit brand has created a new line of products for people who do not like tucked shirts. It
5. Specific customer specialist: Weber carburettor is a company which provides carburettors to only high end cars like
Porsche, Ferrari, BMW.
1. Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour tv “ Sampoorna” for the rural
people and outshine the other coloured TV players who had a less focus on these areas.
3. Encirclement Attack: The FMCG industry applies this attack more aggressively with the intention to outshine the other.
4. Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well before the
Coca Cola’s mineral water brand.
5. Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each other.
When the coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using the punch line “
Nothing official about it”.
● Market leader
1. Cocoa- cola
It is one of the most valuable brands as a result of quality work not only in business but also in marketing they enjoy
beverage of world-class marketing is what makes Coca-Cola the world leader in creative communication.
● Market follower
1. Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best qualities from each other by
changing the style of the automobile. Adapters can soon become leaders as well because they can adapt, learn and make
a better product than the higher competition.
2. Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital TV revolution to India but
was soon imitated by Videocon, Airtel, Reliance and others.
4. Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous other products in the market
which are counterfeited.
Anuj Goyal Roll No:- 65 Marketing Assignment
ANSOFF MATRIX
Current Products New Products
Market penetration strategy Product development strategy
OYO Rooms OYO Weddingz
Market Development Diversification strategy

Strategy
OYO Hotel & Casino in Las

OYO in US, UK & Vegas
Amsterdam
(acquired HOOTERS)
Current
Markets
New
Markets
BCG MATRIX
STAR QUESTION MARK
YOUTUBE GOOGLE DOC
CASH COW DOG
GOOGLE SEARCH GOOGLE +
HIGH LOW
HIGH
MARKET
GROWTH
RATE
LOWRELATIVE MARKET SHARE

PRODUCT LIFE CYCLE
Example – Epigamia (Yogurt)
PRODUCT PRICE PLACE PROMOTION
INTRODUCTION Functional Rs 35/ 90 Health Stores As a health food

and plain gm
packaging
GROWTH New variants Rs 38/ 90 Super markets As a fun snack

get introduced grams for and Online
strawberry Channels
(strawberry)
MATURITY Re-invented Rs 42- Supermarkets, Promoted as a

into museli, 70/90 ms confectionaries, dessert
fruits flavors online channels
DECLINE Not Yet Not yet Not Yet Not Yet
PORTERS 5 FORCES MODEL
( Example – Cure.fit )
Bargaining Threat of Competitive Threats Bargaining
Power of Substitutes of new power of
suppliers Rivalry entrants buyers
Low High High High HIGH
DUE TO HIGH SWITCH TO DUE TO MANY BARRIERS ESPACIALL

NUMBER OF TRADITIONA UNORGANISE ARE LOW Y ON
SUPPLIERS & L FROM OF D PLAYERS DUE TO BUNDLE
LOW FITNESS RATE OF AND SEMI
DIFFERENTIATIO GROWTH BUNDLE
N PACKAGES
PRICING STRATEGIES
DISTRIBUTION
Product – Fair n lovely of Unilever ( General trade data & chain )
Number of SKU’s – 6 (9 grams, 15 grams, 25 grams, 50 grams, 80 grams, 110 grams)
Winter season- Push strategy for Fair n lovely

Segmentation, Targeting, Differentiation & Positioning
Segmenting Royal Hero- KTM - Bajaj -

Basis Enfield- Splendor Duke Pulsar
Bullet
Demographic Income Upper Lower Upper Upper

s middle, high Middle, Middle, Middle
Upper High
Middle
Age 24-40 18+ 21-30 21-45
Gender Male Male Male Male
Geographical Area Tier 1, Tier Tier 1, Tier Tier 1, Tier 2 Tier 1, Tier
2, Tier 3 2, Tier 3 cities 2, Tier 3
cities cities, Rural cities
area
Behavioural Loyalty Very High Medium Medium Low
Usage rate Light High Medium High
Positioning Muscled, Low cost Made for Definitely

sturdy & reliable bike speed & male,
macho bike, with more stunts muscular
can go mileage bike with
anywhere, good speed
suitable for
all terrains,
status symbol
Differentiatio Made like a Reliable, Speedy, Middle
n Gun, Goes good mileage looks, light ranged
like a bullet – weight, stunt speedy bike
Solid build, bike with good
vintage look, looks and
thumping power
sound
CONSUMER BUYING BEHAVIOR PROCESS
NEW PRODUCT DEVELOPMENT PROCESS

· Internal idea sources
· External data sources
· Selection of good ideas and letting go the bad ones

● A product idea
● A product concept - a detailed version stated in meaningful consumer terms
● A product image - the way consumers perceive the product.
● A description of the target market, the planned value proposition, and the sales, market share
and profit goals for the first few years
● An outline of the product’s planned price, distribution and marketing budget for the first year
● The planned long-term sales, profit goals and the marketing mix strategy.
The sales and costs figures together can eventually be used to analyse the new product’s financial
attractiveness.
Consumers can evaluate prototypes and work with pre-released products. Their experiences are very
useful in the product development stage.
The product and its proposed marketing programme are tested in realistic market settings.
Focus is on creating superior customer value. Introduction Place & timing are very important.
Name:- Viraj Shah Roll No:- 111 Topic:- Marketing Assignment.
Consumer and Customer:

Customer is the person who buys the goods or services. Consumers use the products or services.
A bank is a good example. A tooth paste bought for a small kid by his/her parents. Here the
consumer is the kid and the customer is the parents of that kid. Marketing companies mainly focus
on consumers.
Based on factors such as available market share, customer requirements, investment needed,
competitor analysis etc., a business case can now be developed. This is often treated as the first step
of the formal product development process.
8 stages of product development:
1) Idea Generation.
2) Idea screening.
7) Test marketing
Note: Product concept is product idea expressed in meaningful marketing terminology.
Consumers buy product concept.
Examples:
1) Ujala: Aaya naya Ujala, char boondon waala captured the imagination of the Indian public in
1997 and changed the fortunes of the tiny Jyothy Laboratories Limited (JLL). Robin Blue, which
was the dominant leader in the fabric whitener category was available in powder form. Ujala
used the tag line of char boondon wala which projected that in four drops you can clean your
cloths (economical). It was the first liquid fabric whitener in the market. It cleverly used blue
coloured bottle with white embossing on it.
2) Nirma washing powder: Nirma’s target group was E1 to E6 (according to SEC classification).
Nirma in its promotional advertisement used the names of famous film actresses (Hema, Rekha,
Jaya) which projected them as a high quality premium product. Instead of selling the concept of
washing powder directly they projected themselves as a high quality premium product.
3) Crack Cream: Earlier especially women consumers were reluctant towards the cracks on
heels. Crack cream companies sold an interesting concept which made heels as a projection of
beauty while they were at collective get together like wedding, sangeet etc. This made women feel
like having a crack free smooth heel is a projection of beauty.
4) Face packs VS beauty soaps: Beauty soaps sell the concept of being as effective as a natural
face pack and in turn also consumes less time. Traditional face packs take 10-15min while beauty
soaps give same effect in 30-40 seconds.
Pricing Techniques
Price: Pricing is the method of determining the value a producer will get in the exchange of goods
and services.
Note: There are two types of price segmentation Ceiling pricing and floor pricing. All other type of
pricing fall in between these two categories.
Companies follow ceiling pricing when they want to skim the market and follow flooring pricing
when they want to penetrate the market.
Examples:
1) Premium pricing:
· Premium pricing of unleaded petrol (Speed) is higher than normal petrol by 5rs/lit.
· Davidoff Rich Aroma Coffee 100g 999rs (organic), Nescafe Classic Instant Coffee
(100 g) 290rs.
2) Penetration pricing: *Nirma washing powder 1kg 88rs.
* Wheel washing powder 1kg 139rs.
3) Price Skimming: * Apple iPhone 11 (64GB) 64,900rs, Apple iPhone 11 Pro Max
(64GB) 1, 09,900rs.
4) Psychological pricing:
· OTT service will be provided by Apple at 99rs.
· Bata shoes are priced at 999/-.
5) Optional product pricing: Alto 800 ex showroom price:
Variants Ex
Showroom price in
lakhs
Standard 2.99
Standard (O) 3.02
LXI 3.55
LXI (O) 3.60
VXI
3.77
VXI + 3.82
6) Captive Product Pricing:
· Gillette Guard Razor 22rs
· Gillette Guard Cartridges 3 pieces 28rs.
7) Bundled Pricing:
· Cadbury Celebrations Gift Pack, (215g) 150rs.
· Includes 2 Cadbury 1 gems 1 5star etc.
· Close up tooth paste + tooth brush.
8) Promotional Pricing: Lifebuoy Lemon Fresh Soap Bar pack of 4+1 Free for 240rs.
9) Geographical Pricing: Variations in pricing according to different geographical

locations.
· Nandini milk in state of Karnataka 23rs (500ml).

· Nandini milk outside the state of Karnataka 25rs (500ml).
10) Value Pricing: Macd’s meal at 273rs.
11) Loss leader pricing:
· Previously Jio’s (28 days) Recharge at 149rs now Jio’s recharge (28 days) 199rs.
12) Everyday low pricing: Example Walmart.
13) Search Pricing: Ola & Uber when demand for the cars is high the algorithm sets
higher prices.
It is one of the four elements of the marketing mix.
Distribution is the process of making a product or service available for the consumer or business
user who needs it. This can be done directly by the producer or service provider, or using indirect
channels with distributors or intermediaries
1. Intensive Distribution : A marketing strategy under which a company sells through as many
outlets as possible, so that the consumers encounter the product virtually everywhere they go:
supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available
through intensive distribution.This method is particularly useful for products like soft drinks,
cigarettes.
Example: ITC [Indian Tobacco Company] has the most popular brands if cigarettes in India. The
sale takes from the largest retailers like Big Bazaar, Spencers to the smallest of paanwalas at every
nook and corner in India, thus deeply penetrated.
COCA-COLA uses an intensive distribution strategy. This is so because the manufacturer tries to
distribute their product to every outlet possible. Coke is everywhere! Super markets, gas stations,
and even clothing stores; you name the outlet, Coke is there. Soft drinks is even one of the examples
used for Intensive distribution in the text.
2. Exclusive distribution : is an agreement between a distributor and a manufacturer that the

manufacturer will not sell the product to anyone else and will sell it only to the exclusive distributor.
At the same time, even the exclusive distributor has to enter the agreement that he will only sell the
products of the manufacturers exclusively and will not sell those of the competition. This ways, the
market is an open ground for the manufacturer and the distributor and they have complete control
on the distribution of the product.
Example:
JAHUAR [Tata Group] is sold through exclusive authorized dealerships that make it available to the
end customers. Jaguar has its own global logistics network to support the movement of Vehicles from
the manufacturing site to sales site/ showrooms. It has a network of 2700+ dealerships out of which
1000+ is jointly branded by Jaguar & Land Rover.
3. Selective distribution : is a distribution approach where selective and few outlets are chose
through which the product is made available to the customers. Unlike intensive distribution, not all
available outlets are targeted and neither is it like exclusive distribution where there is only one
outlet.
A few outlets with calculated potential are identified and then they are given the rights to stock and
sell the offerings of a company.
Example:
APPLE INC. uses a selective distribution strategy, which involves some degree of exclusivity that
could limit market reach (Greenspan, 2015). This means that Apple has exclusively authorized
retailers that can sell their products. Despite the broad range of retailers mentioned earlier, Apple is
selective in regards to its distribution, not allowing popular retailers like Sears, JCPenny, Bed, Bath
& Beyond to sell their products. These retailers are particularly excluded because they do not reach
certain consumers. Some people live in more rural areas and don’t always feel the need to travel,
thus not frequenting these retailers. Even though Apple has provided its product to a lot of retailers,
many don’t always carry every possible product available to customers.
Direct and Indirect Channels
Direct channels allow the customer to buy goods directly from the manufacturer, while an indirect
channel moves the product through other distribution channels to get to the consumer. Firms that
use direct distribution require their own logistics teams and transport vehicles.
Logistics Vs Distribution
A prime difference is that logistics consists of more factors relating to planning and information
flow; whereas distribution is more related to the physical movement of the goods. Logistics involves
planning, designing, coordination, management, and improvement in the processes involving goods
and resources.
Promotion Concept
Sr. Advertisemen Insights

No t
1 Liril Soap The insight is that earlier women used to egt time only while
bathing, therefore ad showed it and she forgets all her tension
2 Idea - Idea was restricted to only a certain area, after reaching pan
India, the perception issue was idea became a national network
Honey Bunny
3 Airtel It was one of the top most companies, therefore to grow

telecomm was not the only way forward. They came up with
data sharing which focused on youth - “Jo tera hai woh mera
hai”
4 ICICI - There was a time where they used to celebrate Women, but
nothing for men even after their selfless service and care.
“Bande achhe
5 Coca-Cola Out of the 4 P’s, place is what Coca-Cola chose - “Thanda

matlab Coca-Cola” | Hyderabad - Distribution through
paanwala, because highest penetration
STPD-
Below is the example of the STPD for oral hygiene products and their companies.
Companies/STPD
Sensodyne- Colgate Pepsodent-HUL Dabur
GSK
Segmentation
Geography Geography- Pyschographic
- Rural,Urba Geography- -natural and
Urban,rura n; Rural,Urban; ayurvedic
l; Behaviour- Behaviour- product;
segments of segments of Demography-
Benefits for people with people with age
varied oral various various teeth
problems teeth problems;
problems; demography--
demography age and
- income; brand
kids,young, for aspiring
elders and striving
Targeting
People Maxfresh- Targeted adult Babool-

having fresh males/ females yellow
sensitive breathe, and kids; teeth,
teeth;teeth Active salt- complete swollen
whitening tooth family care gums;
cavity, product; 2in1- Meswak-
Colgate freshness + cavities and
sensitive- germicheck teeth
sensistive sensitivity;
teeth,Total- Red-tooth
allround decay
oral health
Positioning
As a 2nd Toothpaste Long lasting contains

toothpaste that protection ayurvedic
brand in provides from ingredients
households decay germs;'Dishoo ; keeps
to tackle protection; m-dishoom', dental
tooth 'stronger' campaigns problems
sensitivity teeth around - away;
'pappu n begin a
papa' great day
the babool
way
Differentiation
Sensitive Larger Launched Old is

problems assortmen Pep dental gold: non-
t of oral insurance in flouride
care partnership toothpaste
products with NIA
in wide
variety
BCG Matrix for Coca Cola India
Question Marks: Fanta and Sprite
Stars: Thumbs Up, Maaza, Kinley
Cash Cows: Coca Cola
Dogs: Diet Coke, Kinley Soda
Coco cola has built its brand internationally since 1886 and in India it retuned in the year 1993. Diet
coke operates in a niche setting and is not available as easily as Coke, it operates in a category with
low market share and low market growth, although the trend for diet and sugar-free drinks has
picked up in the past 5 years in the country, it still needs more exploration. Coco Cola is the cash cow
for the company as the goodwill acquired by the brand over so many years has made it sell itself
now. Maaza operates in a space wherein it requires lots of money to drive its sales and requires
heavy investment to procure the best of the raw ingredients for its manufacturing, so does Frooti,
Slice or any other brand for that matter to drive the mango drink concept in India. It also competes
with counterparts who are healthier that Coke but are often perceived to be at par with the mango
drink. Thus it eats a lot of cash for the firm. Fanta and Sprite have slowly divested the money from
their quadrants as well, because sales for these drinks has naturally been levelled for a long time
now, with very minute fluctuations, that to only because of short-term campaigns.
Ansoff Matrix
grow and also analyzes the risk associated with each strategy. The four strategies of the Ansoff
Matrix are:
· Market Penetration: It focuses on increasing sales of existing products to an existing

market.
· Market Development: Its strategy focuses on entering a new market using existing
products.
· Diversification: It focuses on entering a new market with the introduction of new

products.
Market Penetration: pushing for classic 350, 500, thunderbird 350, 500 in the existing market of
India. The company commands 6% market share in two wheeler segment of India.

Porter’s 5 force
Porter's Five Forces is a model that identifies and analyses five competitive forces that shape every
industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is
frequently used to identify an industry's structure to determine corporate strategy.
An analysis of the Indian Passenger Vehicle Market
Threat of New Entrant: Medium: it is difficult for any company to enter the Indian PV market as it
requires economies of scale, lots of capital as entry and exit costs are high, needs to do a lot of work
on creating the brand identity, product differentiation and has to bear the customer switching costs
which are high in this market. Other factors that an entrant has to keep in mind before entering the
automotive space in India is that the access to raw material, technology and distribution channels in
a developing country like India is not easy to establish and the government norms, policies quickly
affect this sector.
Bargaining power of suppliers: High: the PV market in India is considered to have highly capital
intensive requirements and labour requirements in order to keep producing constantly. Auto parts
make up half of the story for your vehicles and aren’t easy to procure in this market, long and
healthy supplier relationships are valued in this industry. Lead times, overall quality of products,
accessories all are affected by this relationship.
Bargaining power of Buyers: Medium: the power in the hands of the customer today is much more
significant. Back in 1991, only 3 cars were manufactured and stored in India with months of waiting
time for delivery, today on the other hand, customers can easily switch even after having booked the
car, which is a big cost to the automotive manufacturers.
Threat from Substitutes: Low: it will take India another decade to adopt the EV cars that are slowly
to be seen on Indian roads. MG ZS is all set to be launched in the next year and is being marketed as
India’s first EV. Government plans with FAME are also helping this space, but still the threat is low.
The other alternatives like public transport infrastructure do always substitute the need to own a
vehicle in some cities but not the same can be said for the entire country.
Intensity of Rivalry: High: it is an oligopoly; this helps reduce price based competition, but
competition on differentiation, product features, after-sales service, etc., is always a factor that
creates rivalry amongst competitors.
Market Challenger
1. Frontal Attack: Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi
2. Flank Attack: L.G has successfully made use of this strategy by introducing the colour TV “
these areas.
3. Encirclement Attack: The FMCG industry applies this attack more aggressively with the
4. Bypass Attack: Pepsi adopted this strategy when it launched its mineral water brand
5. Guerrilla Warfare: The Pepsi and Coca-Cola follow this strategy aggressively with the
Pepsi counter-attacked it by using the punch line “ Nothing official about it”.
Market Leader
relations.
4. Counter-offensive Defence: When Ceat tyres attacked TVS Srichakra in Tamil Nadu markets,
5. Mobile Defence: For instance, a five-star hotel can become a foreign exchange dealer, inbound
6. Contraction Defence: For example, HUL decided to concentrate on its core business areas, that
Market Nicher
garuda and forum mall, Medium footfall (501-999)- central mall & majestic street, Small footfall
(<501)- Hong Kong bazaar & shangai bazaar
4. Specific customer specialist: High performance carburettors to specific brand like BMW,
Porche, Ferrari
5. Product /Product line specialist: Amul offers a series of closely related products such as milk,
butter, ghee, yoghurt, ice-cream, chocolates, etc.
Market Follower
1. Adapter: Cars like Maruti 800, Alto, Zen, brio, etc are all adapters and they adapt the best
qualities from each other by changing the style of the automobile. Adapters can soon become leaders
as well because they can adapt, learn and make a better product than the higher competition.
2. Imitation: The imitation of Tata sky, where Tata sky is the market leader and brought digital
4. Counterfeiter: Similarly, you can find shoes from Reebok and Adidas as well as numerous
Product life Cycle
Introduction Launched in five Rs. 2.5 per Only to “Easy to cook

flavours initially. 100 gm (100 selected retail ; good to eat “
These were % margin) stores,
Masala, Chicken, distributors
Sweet &sour, and kirana
Capsicum,lasagn stores
e
Growth No Changes in Prices were Campaigning “Mummy

product. Tried kept normal in school , tied bhook lagi
changing taste with Chordia hai bas do
by launching Rs. 10 for 100 foods (pune) minute
Maggi Macroni gm by 1997 and Indian Maggi”
in 1997, but foods
reverted the fermentation TV programs
changes soon (Chennai) and heavily
advertised
Maturity Introduced wide Prices were Extensive “Taste bhi,
variety of affordable, distribution, Health bhi”
flavours like But reduced
vegetable atta the quantity Maintained
noodles, Chicken good relation
noodles, magi Rs. 10 for 70 with channel
cuppa mania gm partners
Decline Found presence Still Low Reduced Come back

of Lead in the distribution campaign
Maggie which
lead to loss of
trust among
customers

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1) Customer v/s Consumer

Relationship Between Customer and Consumer

Ø New Product Development

There are 8 stages of product development:

3) Concept developing and testing.

4) Marketing strategy and development.

the time passes.

recent phones from Oneplus are priced in the range of $500-$700.

process $2.99 to be nearer to $2 and not $3.

quality product to increase its sale, etc.

Ex: Mcdonald’s happy meal is a perfect example of bundle pricing

The costs of marketing and promoting a product are kept to a minimum

Geographical pricing sees variations in price in different parts of the world.

Ex: Nandini milk cheaper in South India

Ø Distribution & its Strategies:

Ø PROMOTION & INSIGHTS:

· Product Development: (EXISTING Market, NEW Product)

· Market Development:(NEW Market, EXISTING Product)

· Related Diversification:(NEW Market, NEW Product)

· Unrelated Diversification: (NEW Market, NEW Product)

Ø Porter’s 5 forces(Amul Dairy)

companies with Amul Dairy is quite high.

Threat of New Entrants

Bargaining Power of Suppliers

Bargaining Power of Buyers

company in eyes of its purchasers.

Ex: Market Leader : Cafe Coffee Day

India's largest coffee conglomerate.

Market share : 46%

% of stores in top 8 cities : 61%

Market Challenger : McDonald's India

Launched McCafe on Oct 14th, 2013.

Attacked the strengths of CCD

Quality product & taste

Targeted the youth

Ex: Balaji vs lays

Ex: yippee vs maggi

Ex : Market Leader : Coke

Market share : 17.8%

Market Challenger :Pepsi

Market Share: 8.4%

· Cloners: Lays vs. Legs

Colgate vs. coolgate.

· Imitators: Same design of shoes are made by local commodity seller.

· Counterfeiters: Same Brand name and totally illegal.

Ø Product line extension

NEW PRODUCT DEVELOPMENT- MARUTI SUZUKI

Premium Pricing Example

Penetration Pricing Example

Economy Pricing Example

Predatory Pricing Example

PROMOTION - ICICI life insurance (Bande ache hai)

SEGMENTATION,TARGETING AND POSITIONING- TITAN

Segmentation became an important issue as their operations expanded. Titan believed

ANSOFF MATRIX - COCACOLA

Market Penetration: (EXISTING Market, EXISTING Product)

Product Development: (EXISTING Market, NEW Product)

Market Development: (NEW Market, EXISTING Product)

Diversification: (NEW Market, NEW Product)

PORTERS FIVE FORCE MODEL - WATCH

· Medium footfall (501-999)- central mall & majestic street

· Small footfall (<501)- hong kong bazaar & shangai bazaar