CASES IN MARKETING MANAGEMENT 1.

CASE#1 - ARJUN PHARMACEUTICALS

Ans-1 This case study refers to work style of Mr. Prakash Khanna who was very ambitious and dedicated towards his job but had a negative approach. When Prakash Khanna joined company was in transition stage, going towards high growth opportunities as company products was in high demands. Khanna made some pessimistic moves, which were against companys interest if considered in long term, which are explained as below: He irritated the dealers by withdrawing of the credit facility, which they enjoyed for years but the dealers still agreed to it. He slashed down advertising budget instead he should have thought of the ways of expanding the job opportunity for the organization by which he would have earned more business & profit to the organization. Although he was brought latest technology machinery he could not use efficiently due to lack of training at the operational level. Khanna was in opinion that all higher positions were to be filled by hiring fully trained professionals from outside. As a result training department was wound up. It also led to the stagnation of growth opportunities of existing employees. All the above-mentioned wrong moves created dissatisfaction among all employees.

Ans-2 No, I dont rate Khanna as a good manager since all his policies were aimed at short term focusing huge profit overnight. Following are the reasons supporting my ratings. He annoyed his dealers by withdrawing the credit facility & making advance payment mandatory. That disturbed company relations with dealers. He blocked the internal progress of employees and created nuisance among all employees. He hired employees from outside. He adopted new machinery and techniques instead of providing training to his existing employees & labour. He shrinked downs his advertising budget as in comparison to his output production.

Ans.3 No Id not have done the same thing if I have been to Khannas position all the actions, policies and decisions were aimed at short-term profit & gains. There is lack of

vision, boldness & leadership in all of Khannas approaches. If I have been at Khannas position Id have reduced the credit period if required rather than withdrawing the facility. Moreover, preference has to be given for promotion to existing star performers & high talent available rather than hiring outsource. Means and ways should be explored for reducing cost of internal operations, cost saving drive and internal productivity. 2. CASE# 2 - NATURE BEAUTY PRODUCTS

Facts: 1. Nature Beauty Products has been a medium sized business manufacturing and selling herbal cosmetics and perfumes. 2. Top-selling perfume Musky has been most favourite among its nation wide clientele. 3. Raw material organic extract from musk-deers in Nepal. 4. Trapping and killing of musk-deers has been banned recently by Government. Ans.(a)One has to raise the price of the perfume as there has been increase in price of raw Material. If we dont raise the price than the profit margin of the company will suffer. We can raise the price marginally which will also help in retaining the profit margin and as well as not be a pinch in the customers pocket. We have to retain the existing customers and also try to improve on the sales, which will in turn bring down the companys overhead. If we increase the price of perfume to a great extent in that case the company will suffer on its sale. The company may lose its existing customer and thus the profit will suffer. A customer will obviously not like the rise in the price of its favorite product but if the price is marginally hiked then definitely customer will not be too annoyed. The customers will still remain dedicated to the product as they use it. If the price is raised to a great extent and out of their reach in that case the customer will restrain from buying it further and thus the sales will drastically affected. Ans.(b) If the company is marketing itself as a herbal company in that case no synthetic raw material should be used. The company using synthetic raw material is diverting from its commitment and thus cheating its customers. A company in order to get recognition and grow in a healthy way need to keep its commitment. For e.g. We can take the recent Pepsi case when it was flashed in the media, each & every person drinking Pepsi restrained themselves from doing so & thus the sale of MNC got affected. But since Pepsi is a MNC and it has a lot of money, they were in a position to fight back & prove themselves right. If they could not have proved themselves then even being a big company & having major shareholder in the soft drink industry they could have suffered a great loss. If the opposition could have proved that it contains something harmful for health, it would have even led to have shut down its operation. Thus it is very important that the company should keep its commitment as if challenged they can defend themselves.

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CASE# 3 - CHAP-PALS

Ans. Key points for a competitive marketing strategy has to be based upon following key points :1. 2. 3. 4. 5. 6. 7. 8. 9. Taste/Preference of people/customers. Price focus Advertising Sales promotion techniques Covering remote areas of product Potential of customers Earning of people Promotional campaigns to be organized in high remote areas. Needs & Comfort point of view of people

Marketing research is the first step towards deciding a good marketing strategy for product. Marketing strategy is based upon the above mention points i.e. they are the guidelines to decide launch strategy for product and following answer is based upon these points only. The market structure is to be organized in a systematic way. The manager has to first focus on the taste, preference of the people living in that area e.g. How many people focus on wearing leather footwear & how many feel comfortable with chappals. Then keeping in mind the price range they are able to reach and to make them aware of the product; how can advertising, sales promotional campaigns help them in introducing their product. Various measure have to be designed so that it has to meet people needs with a reasonable amount of investment in such campaigns. Focus has to be on people living in remote area & various schemes has to be introduced to bring your product in limelight. What is the potential and earning capacity of each of your customer. Customers are of which type lower level, middle & higher level people; keeping in mind various product has to be launched. Apart from all these need and comfort level of people is a positive aspect that is to be kept in mind. All these positive aspects can lead too much better marketing strategy framing towards achieving organizational goals. 4. CASE# 4 - CIGARETTES

Facts: 1. The company was in good reputation and in profit as good cigarette providers. 2. Son of chairman was fitness fanatic. He launched a non- tobacco ayurvedic herbal cigarette as to care the youths health. 3. He reduced the nicotine intake in cigarette as in result cigarette demand in market start declining.

4. Company employees confused with young chairmans son and the market trend of pure tobacco cigarette demand. 5. The motto was followed to serve people by non-tobacco cigarette.

Ans. I advice the marketing director of the company that again to increase the cigarette demand they have to add up the required nicotine in cigarette because for people cigarette is only a tobacco intake in a form of paper wrap burning including tobacco. For cigarette addict herbal cigarette would not result into a good satisfaction. As once a time cigarette named Golden had launched which cost Rs.8 per cigarette but unfortunately that was a totally failure because the people concern is not the paper material turning but to exactly the tobacco intake as their body requirement as a strain buster. If purpose of draining out the strain would not prove worthy then why people go for herbal cigarette. As in their concern cigarette is a strain buster, which could only a tobacco cigarette, can do. 5. Fact: 1. 2. 3. 4. 5. L & T and Siemens both are leading players in switchgear field. Siemens enjoyed monopoly before L & T entered into market. Siemens have been better quality over L & T price being almost same. Siemens product has reputation, switch for heavy-duty application only. L & T is capturing Siemens market. CASE# 5 LARSEN & TURBO.

Ans.a) L & T is a reputed company and would have done a market research before entering into the switchgear field. Various aspects of market could have been analyzed as potential customers, their needs, product range, and price quality and after sales service requirement. L & T would certainly have been able to find out the loopholes in the market strategy of Siemens and hit those areas along with the existing Siemens products. Downward trend in the sales of Siemens could be L & Ts large product range of switchgear to suit the general & computer applications of customers. Though in the same areas product quality of Siemens is better but L & T has tried to introduce same new features and aesthetics into the product at the same functional aspect. The price policy of L & T could be better than Siemens in terms of discounts credit facility, payment terms & made of payment. L & T could have explored new market and made available their products to the areas customers where Siemens is not able to approach till now. After sales service of L & T could be much better which results in better satisfaction among customers & ensure in retaining them.

As switchgear is a engineering/technical product. So L & T products could adhere to more international/domestic products standards like ISI, NEEMA, JIS, IJC etc., which could be a necessary requirement for govt./corporate/industry specific customers. Ans.b)Siemens should carry out a market research & intelligence to analyze that has L & T captured new market and the existing share of Siemens. Based upon those facts Siemens would take appropriate action to counter those areas. If it is a price issue Siemens should reduce its price slightly by offering more discount to it high volume potential customers to help its edge on price as well as quality over L & T. Company should organize technical conference and meetings where the representation of industry and other customers should be invited to change the product image as not suitable for heavy duty applications but as a versatile/universal product. It will help the company in expanding the existing market to light duty application. Product should be made available to dealers/customers at an alternative price policy and within the shortest possible lead-time. Research & development effect should be carried out on the products to improve its existing features, life, suitability to various application & to have more complaint to various national/international industry/institutional standards. After implementing all those points an close eye should be kept over the result of market all the marketing mix should be resized/corrected accordingly to achieve organizational sales good.