DNYANSAGAR INSTITUTE OF MANAGEMENT & RESEARCH …dimr.edu.in/wp-content/uploads/2020/03/MM.pdf · The Gap Model of service quality identifies the five gaps that can cause service

DNYANSAGAR INSTITUTE OF MANAGEMENT & RESEARCH

CONCURRENT EVALUATION FOR MARKETING SPECIALISATION

IV SEMISTER

SERVICES MARKETING (403)

Faculty Name: Prof. Dr. Manisha Jagtap

Important Instructions:

1. The subject is evaluated on the basis of three components

Components Marks

A. Caselets 50

B. Written Home Assignments 50

C. Student Driven Activity (Poster Presentation)

50

2. The submission has to be in the format prescribed for each component.

3. Answers should be in own words, copied answers will be not be marked.

4. Student Name, Contact number & Specialization must be clearly mentioned on the

submission sheets.

REFER BOOKS

Services Marketing by Zeithaml, Bitner, Gremler& Pandit, TMGH, 4th Edition

Services Marketing by Christopher Lovelock

Services Marketing, Rama Mohan Rao, Pearson

Services Marketing by Rampal & Gupta

Services Marketing by Helen Woodruff

Services Marketing: Concepts and Practices byRamneek Kapoor, Justin Paul & Biplab

Halder, McGraw Hill

Services Marketing by Rajendra Nargundkar, McGraw-Hill, 3rd Edition

___________________________________________________________________________

A. CASELETS

Caselets are to be written in Assignment sheets ______________________________________________________________________________

CASE NO.1

MARKETING OF HEALTH SERVICES

Pulin Kayastha was simply amazed. He had seen all forms of hostility and marketing warfare in

the consumer goods industry, but to see similar warfare in the health industry fascinated him.

Clearly, he told himself, doctors had found consumers in their patients. At least, that's what the

concept note sent by Dr. Ajit Varman, country manager of Recovery Clinics & Hospitals, seemed

to indicate. Varman and seven other senior doctors had left Karuna Nursing Home and Hospital

to set up Recovery, which, as the note said. "would be entirely devoted and dedicated to

customer responsiveness."

Pulin was a management consultant and was recommended to Recovery by the marketing

director of Regrow Pharma, a large pharmaceuticals company in Mumbai. In fact, the

suggestion to set up Recovery came from a non-resident patient, Dinesh Shah, who was

undergoing treatment at Karuna's large speciality hospital in Central India. It was in the course

of his interaction with the doctors that Shah sensed their unhappiness with the system. This

prompted him to suggest the idea of Recovery. Varman had joined Karuna 10 years ago,

assured of a challenging career in a hospital that was promising to be different. But over time,

disillusionment set in as Karuna's image and response to the environment diluted its equity.

"Now that we have decided to do this, we do not want to repeat old mistakes," Varman had

told Pulin during their first meeting. "Having worked at Karuna, we can see its weaknesses and

why it's losing saliency. Ten years ago, when it was established, we believed it was going to add

value to our careers; we became a part of it because we were told that we are specialists who

would bring exclusivity to the hospital. But soon, the focus shifted to fetching business and

revenues. The management started hiring specialists and private practitioners, offering those

cabins and consultancy arrangements at Karuna. The strategy was that these doctors would

bring in their patients and use the infrastructure so that the hospital would start earning

money."

The Karuna management wanted to derive short-term benefits, and then gradually build up

clientele. But the strategy, it appeared, did not pay off. As, Varman said: because there were

many doctors and the business was not large enough in the first few months. Consequently,

competition for business became cut-throat between doctors."

Despite modern amenities, state-of-art systems and numerous doctors, the image of the

hospital was that of being too commercial - a fallout of the stigma of being a private hospital. It

was common among doctors to slot every hospital under either category - a place where you

get neglected to death or a place where you get researched to death. Karuna earned a new

label - a place where you got cross-referred to death, for doctors at Karuna slowly took to

enhancing each others' earnings as they sent patients back and forth to doctors and specialists.

At the end of his diagnoses, the patient ended up paying a huge amount of money for this

treatrnent.

According to Varman, the high-cost, high-expectation syndrome hit the hospital. The initial

promise of exclusivity and quality was lost. Karuna had the best doctors. but after-care was

abysmal. With a view to keeping costs low, nurses, house-keeping staff and even tbe front

office staff were hired cheap, training was virtually absent, and no attention was paid to end-

user needs.

Kayastha could see Recovery trying to be all that Karuna was not and desiring not to be all that

Karuna was. If Kayastha thought Varman was hiring him for routine systems design and a

patient management manual, he was mistaken. For Varman said: "We want to get Recovery's

positioning platform right and work on a sound marketing plan. What we want you to do is to

help us build this brand, help ordinary doctors like us understand what brand-building entails

and how it is managed in a service industry."

Questions (write the answer in your own handwriting):

(a) Suggest a positioning strategy for Recovery Clinics and Hospitals.

(b) Explain why it would be necessary for doctors as well as nursing staff to be marketing

oriented.

(c) Identify and discuss the service quality dimensions which Recovery Clinics and Hospitals can

use for measuring its service quality.

CASE NO.2 PREMIER COURIER LTD.

Premier Courier Ltd. (PCL) is an innovative overnight delivery company that helped change the way companies do business. It was the first company to offer an overnight delivery system, but the company markets more than just a delivery service. What PCL really sells is on-time reliability. The company markets risk reduction and provide the confidence that people shipping packages will be "Absolutely, positively, certain their packages will be there by 10.30 in the morning".

In fact, PCL sells even more than reliable delivery. It designs tracking and inventory management systems for many large companies. In other words, its customers buy more than just delivery service they buy a solution to their distribution problems. For example, a warehouse designed and operated by PCL is part of the distribution centre for a very large computer firm. In other organisations, customers can place an order for inventory as late as midnight, and the marketer, because of PCL's help, can guarantee delivery by the next morning. PCL has positioned itself as a company with a service that solves its customers' problems,

Questions (write the answer in your own handwriting)

(a) What is PCL's product? What are the tangible and intangible elements of this service product? (b) What are the elements of service quality for a delivery service like PCL? (c) In what way does technology influence PCL's service quality?

CASE NO.3 Amazon.com

Amazon.com likes to describe itself as Earth’s Biggest Bookstore, yet it has no physical

bookshops. Instead it’s a virtual bookshop doing business on the Web and accessible 24 hours a

day to anyone in the world who has a computer capable of connecting to the Internet. It

opened its ‘virtual doors’ in the US in July 1995 and grew at an extraordinary rate. By mid 1998

it had made sales to more than 3 million customers in 160 countries, claiming it was by then the

leading online shopping site. In addition to books, the company offered 125 000 music titles,

ten times the number offered by the average music store. Ten years later Amazon.com had 88

million customers, sales of $25 billion and a net income of $9.2 million. In addition to books, the

company offers a wide range of music, electronics and other goods and it operates retail

websites for other major retailers. In 2007 Amazon launched a cheap electronic reading device,

the Kindle, on which owners can buy and download electronic books. Through its website,

Amazon customers could search for books by author, title, subject or keyword or browse for

books in 28 subject areas. The software at its user-friendly website simulates a knowledgeable

bookshop assistant. By indicating your mood, your preferences and other authors or artists you

like, you can get recommendations for new books or music that you might enjoy. Customers

are invited to send in their own reviews of books or music, which visitors to the website can

then compare with reviews by professional reviewers. When a customer places an order

through the website, the company arranges for physical items such as books, CDs or other

products to be shipped directly from a warehouse. Customers selecting MP3 music or e-books

can download the material onto the relevant e-product.

Questions (write the answer in your own handwriting)

1. Explain how technological innovation and internationalization, two of the twelve forces for

change in service management, contributed to the competitive advantage of Amazon.com.

B. HOME WRITTEN ASSIGNMENTS

Assignments are to be written in Assignment sheets

Each question carries equal marks and all questions are compulsory

1. "One of the most significant differences between goods and services is that in goods search

qualities dominate while services are dominated by experience and credence qualities." Discuss

the above statement with suitable examples.

2. Discuss 'Inseparability' and 'Perishability' as characteristics of services. Also describe their

marketing implications for an amusement theme park.

3. The Gap Model of service quality identifies the five gaps that can cause service problems and

influence customer evaluations of service quality. Discuss the Gap Model of service quality.

Demonstrate your understanding by using clear practical examples of how the five gaps should

measure, manage and minimize service quality in an organisation.

4. Enlist the different pricing strategies being followed by service organisations. Discuss any

four of these strategies in detail with suitable examples.

5. Explain briefly the procedure for service design with activities in each stage.

6. Assume you manage a movie theatre in a metro city:

(a) Explain the underlying pattern of demand fluctuations likely to occur at the theatre and the

challenges it would present to you as a manager. Is the pattern of demand predictable or

random?

(b) Explain demand-oriented and capacity- oriented strategies you would undertake to

smoother the peak and valleys of demand.

7. Discuss the importance of 'Internal Marketing' for a service organisation.

8. Discuss the importance of people, process and physical evidence for the following :

(i)Travel Company and (ii) Hospital

9. You have been appointed as a marketing consultant by a multi-speciality corporate hospital.

Prepare a note for the hospital management explaining:

(a) Why it would be necessary for doctors as well as nursing staff to be marketing oriented?

(b) Importance of word of mouth communication for the hospital.

(c) How the pricing of health services is different from pricing of goods?

10. Explain ServQual Gap model with special reference to an education institute. Identify the Gaps and also specify the strategies needed to fill the gap.

Do Refer: Books

Services Marketing by Zeithami, Bitner, Gremler & Pandit TMGH, 4th Edition

Services Marketing by Rampal & Gupta

C. STUDENT DRIVEN ACTIVITY

(Poster Presentation)

1. Develop a flow chart to depict the delivery of the following services (state your assumptions

if made) (Make an A3 size poster for each below)

i. Hotel catering

ii. Banking

2. Draw the service blue print for the following services. (Make an A3 size poster for each

below)

i. Adhar card service organisation

ii. Air-lines

iii. Passport Seva Kendra

SALES & DISTRIBUTION MANAGEMENT (404)

_________________________________________________________________________



Components Marks

A. Industry Analysis – (Individual Activity)

50

B. Written Home Assignments 50

C. Caselets 50




submission sheets.

BOOKS TO REFER

Sales and Distribution Management by Havaldar & Cavale, TMGH

Sales Management by Still, Cundiff & Giovanni, Pearson Education

Sales and Distribution Management, SL Gupta, Excel books

Retailing Management by Michael Levy & Barton Weitz, TMGH, 5th Edition

Retail Management by Gibson Vedamani , Jaico Books

Retailing Management by Swapna Pradhan , TMGH

A. INDUSTRY ANALYSIS (Individual Activity)

Analysis of RETAIL industry to be done & report to be written (MS WORD) in the stated format

Select any retail organisation (organized sector) of your choice

Points for report writing:

Cover Page (Title of Project, Name of retail organisation/company, Name of Student, Name &

Signature of Faculty Coordinator)

I. INTRODUCTION TO RETAIL

Brief history of Retail in India

Growth of Retail Industries in India

Present scenario in India

Size of retail in India (latest statistics)

Turnover in different segment of retail

Share of organized retail (segment wise distribution)

II. VARIOUS FORMATS OF RETAIL

III. SUPERMARKETS / HYPERMARKETS/ DEPARTMENTAL STORES/ MALLS IN PUNE

Select any one super market/hypermarkets/ departmental stores/ malls do the study

of :

Number of branches , growth, merchandise offered, procurement policy staff,

promotional strategy)

IV. INTRODUCTION OF THE COMPANY ( retail selected)

Brief about Company

a. Name of the Company

b. Chairman/ CEO

c. Place of Origin

d. Head Office & Branches

Vendors, SCM

Outlets in Pune

Store layout

Merchandise offered, shelfing

Customer profile

Change in demography of Pune in last 10 years

Drivers of change in buying behaviour

Promotional Activities

V. LEARNINGS

VI. REFERENCES

Prepare a report in MS Word (minimum 4000 words) on retail organisation/ company

selected by you and PPT (15 minimum slides)

B. WRITTEN HOME ASSIGNMENTS



Q1. As a chief distribution officer of a new entrant for FMCG product for Rural Women, you are

given the task to study and recommend appropriate channels of distribution for the Indian

market. What factors you will consider before designing the channel strategy?

Q2. You have been retained as a consultant to develop sales training programme to improve

productivity of middle-level sales managers of a company manufacturing personal-care

products like shampoos, creams and moisturizers etc. Describe the key features of the training

programme devised by you.

Q3. Assume you are a regional sales manager of Bajaj Auto Ltd.& you are asked by your GM to

submit your Sales Planning & Sales force strategy to achieve an increase in sales volume by 25%

for the next financial year (make assumptions, if required)

Q.4. Design the market channel system for a Pharmaceutical company‟s “Anti-cancer” division,

with its channel policies, choice of the channel & organizational pattern in the channel.

Q.5. If you are appointed as a “Sales Trainer” for a mobile handsets strategic business unit of a

large MNC company with 100 sales people, how would you decide their specific training needs?

Q.6. “Monginis” is a well-established cake brand. It has chosen a way of giving franchisee as

their channel decision. What are the advantages of choosing Franchise as a marketing channel

& what would be the process of appointment of a Franchisee for “Monginis”?

Q.7. For an Ayurvedic company based in Kerala how important is the role of Marketing

Channels? Explain the role and structure of its channel institutes like C & F agents &

Wholesalers so as to ensure availability of their products across India.

Q.8 Discuss the current scenario of Retail industry in India & try to identify the operational

differences in the organised and unorganized formats of retail industry with suitable examples.

Q.9 Take a case of “Amway”, which has successfully set a new way marketing with its multilevel

marketing model. Elaborate on its role and significance as compared to other marketing

techniques.

Q10. Consider an FMCG company trying to distribute its product directly to its consumers. What

would be the major hurdles if this strategy is followed? What would be the advantages and

disadvantages by following this strategy?

C. CASELETS

Caselets are to be written in Assignment sheets

1. Read the following case and answer the questions :

Sales promotion schemes are devised to motivate the consumer to take that last step and buy

the product. This objective has to be held sacrosanct while formulating a promotion scheme.

The soft drinks industry is organized.

The soft drinks company supplies concentrate to the bottling company. The bottler adds water

and gas to the concentrate, packs it and delivers the finished product to the distributor. The

distributor then delivers the product to the retailer and the retailer to the consumer. The

marketing message reaches the consumer directly from the company that makes and markets

the concentrate. But message like sales promotion actually passes through three hands before

it reaches final destination. Often, there are accidents on this journey.

The soft drinks company offers different types of schemes. The schemes that offer gifts on

purchase reach the consumer because he insists on the gift being advertised. However, those

that require involvement by the consumer like turning in crowns along with/without money for

gifts are not relished by the consumer.

This is because:

(1) The consumer is not excited enough to bite the bait. The consumer bites the bait only when

his/her perceived value of the benefit is high. A scheme like 'look under the crown and get

whatever is printed on it' will be successful if the prizes are of extremely high value. Because, if

you announce a car or bike and do not say how many of these prizes can be won, then you have

done a half-hearted job. The consumer is sure to calculate the probability of a prize. He/she will

not participate in the scheme, if he/she thinks that the chance of bagging a prize is remote.

Instead, it will create hostility in the consumers mind about the brand.

(2) The company does a callous job relaying the information through the distribution channel.

This is often the case l with the soft drink giants. The distribution is the weak link in these

schemes.

(3) The distributor’s vans and their salesmen represent the company as far as retailers are

concerned. Retailers are enthusiastic about schemes because they think the increase is

throughout to their profits. But the distributor’s salesmen seem to use their judgments in

communicating the schemes. They often act as they are doing a favor by telling them about the

schemes. But the retailers also watch TV and know about the schemes. And when there is no

communication from the distributor, the retailer gets cynical. Not just cynical, retailers are

enraged when they learn that the scheme is not on offer in their area or has not been

communicated by the distributor’s representatives. There are instances (not stray ones) where

a retailer has no idea about a scheme which is being offered by a neighboring retailer. The

company cannot afford to differentiate between retailers when it is advertising the schemes on

the national channel. Bar owners are not interested in promoting the schemes because of the

profile of their clientele. Hotel owners A are one up; they always serve soft drinks in glasses.

The staff of the hotel/bar tends to be avid crown collectors. So, the sales promotion scheme

goes off-target.

Questions:

(1) Why such sales promotions are started that seen unwanted expenses and generate heart

burn among the consumer and retailer?

(2) How can you synchronize media planning, marketing, sales and distribution efforts in such

sales promotion scheme ‘?

2. Read the following case and answer the questions given in the end:

In a bid to expand the market and boost sales, LG Electronics Ltd. identified institutional sales

as a focus area in the calendar year 1999. It plans to triple the target turnover to Rs. 150 crores

from institutional sales. LG has honed its institutional sales strategy by identifying and

proactively targeting five different segments to push the LG range : brand promotions; the

welfare segment (factory workers and office staff); government sector; direct users (hospitals,

hotels); and the canteen stores departments (CSD) of the armed forces.

A distinct strategy has been tailored for each of the five segments. In brand promotions for

example, the perceived value of the products given as gifts is important, whereas for the well

are segment aspirational value, convenience and easy financing are prime factors. Meanwhile,

hotels represent a price sensitive segment requiring specially customized products.

Welfare: In this segment, LG is targeting a consumer base - the aspirational consumer, mostly

factory staff - that most companies ignore, but which has considerable clout in terms of

generating volumes. This segment is being targeted on the convenience and easy finance

platform. LG has just tied up with Birla Global Finance Ltd., part of the Aditya Birla Group, for

the purpose. Under the tie-up, LG will unit-wise cover all the Birla companies. This amounts to

over two lakh employees.

This is a lucrative segment, claims LG, because of the high hit-rate; out of a potential base of

1,000 factory workers, there is an assured sale of at least 10 to 20 percent.

Hotel Segment: In this segment, LG is targeting the five-star and middle-level hotels (50 - 110

rooms) by offering customized products. For example, LG offers a special 'hotel-mode TV'

model with an auto volume leveler, which ensures that other guests are not disturbed. Another

attraction for hotels is the cricket game TV model that would also prove to be popular and an

interactive option with Internet, video/audio or room service menu facilities. LG claims to have

sent out mailers to 1,200 hotels - and bagged at least 100 orders, besides the 'Palace on

Wheels' luxury train, for providing TV sets in its 52 cabins. Now, LG is reading a range of

interactive televisions for this segment, offering remote-controlled features like: the hotel

menu, local facilities, billing, room service, video on demand, internet, and multilingual options.

Canteens and the Government Sector: "We are perhaps the only company offering our entire

range of products in CSD canteens," feels the product manager, of LG. In the government

sector, which operates through tenders, significant orders so far included an order for 200 TVs

for Himachal Tourism bungalows in the State and over 2,000 TVs for primary schools in rural

areas in Maharashtra.

The company has a five-member Institutional Sales Division, with each devoted exclusively to

one segment. It has 50 institutional sales dealers and a ring of sales representatives when

interact with the dealers and conduct demonstrations when needed. Its infrastructure consists

of 20 mobile vans with glass windows to display the product range. These vans cover at least

500 km every month in both rural and urban markets.

Questions :

(a) Do you think such a field sales force is adequate to harness the market potential in the

Institutional market?

(b) Would you recommend focusing on one or two segments out of the given five ? Justify your

answer.

3. Case : Suvidha’s Incentive Plan

Suvidha Home Appliances Company pays its sales people well. They are on expense account.

Their promotional prospects are bright. They get an opportunity to travel to exotic places as a

reward for their service. Many sales people draw five figure salaries.

Suvidha has thought about an incentive plan to keep the sales people motivated. It has started

to think of ways and means to compensate sales people without increasing their tax liability. It

has thought of providing the sales people a catalogue of household items which can be

obtained by redeeming the points earned by them on the basis of performance. It will provide

good opportunity to sales people to point out to others with a great degree of pride what they

have achieved by showing the household item, and then explaining how they won it.

They also want to introduce a travel plan, because a travel to beautiful locales home and

abroad is an ultimate dream of many people. Travel plan scores over reward redemption

scheme because a reward that is repeated does not have incentive value, whereas a travel plan,

though repeated, keeps up its incentive value. Travel plan is also a family affair.

Issues: Can you think of some more incentives for suvidha’s sales people? Justify your answer.

RETAIL MARKETING – (405MKT)



Components Marks

A. Written Home Assignments 50

B. Simulation Exercise 50

C. Caselets 50

D Scrap Book 50

E Thematic Presentation 50




submission sheets.

REFER BOOKS:

Retailing Management by Michael Levy & Barton Weitz, TMGH, 5th, Edition

Retailing Management by Swapna Pradhan , TMGHRetail Management by Gibson

Vedamani , Jaico Books

Retailing by Patrick Dunne, Robert Lusch, David Griffith, Cengage Learning,

Retail Marketing Management by David Gilbert, Pearson Publication.

Retail Management, Arif Sheikh, Himalaya Publishing

A. WRITTEN HOME ASSIGNMENTS



Q1. Compare the nature of retail formats employed and their impact on retail penetration of

any

two FMCG companies.

2. The organized formats in the Indian retail market have been increasing over the last –

decade.” what are the emerging trends in organized retailing and its importance in Indian

economy?

3. Discuss strategies adopted by Shopper‟s Stop in its Marketing Operations.

4. “Warna Bazar”, a Rural Retail Co-operative Chain, wishes to increase its sales through CRM.

Design CRM Programme for the same.

5. Write a note on Big Bazaar explaining its market environment, strategy and merchanding

process.

6. Briefly discuss the various types of non-store retailing currently.. What are their limitations ?

7. Discuss the types of retail formats that exist in the following product categories. (i) Garments (ii) Durable goods

B. SIMULATION EXERCISE

Submission to be done in MS Word & Power point presentation (soft & hard copy)

You are a young entrepreneur and planning to open up a high end fashion shop in your city.

Make your assumptions.

a. Do a location analysis for selecting best location for your shop

b. What types of store layout will you will plan for your shop.

c. Do a retail atmosphere planning for your shop

d. Do five major visual merchandise planning for your shop

C. CASELETS

CASE NO 1

Margin Free Market Private Ltd.

Subhiksha in Chennai, Margin free in Kerala, Bombay Bazaar in Mumbai, RPG'S Giant in

Hyderabad, and Big Bazaar in Kolkata, Hyderabad, and Bangalore have one thing in common -

they all price their products below MRP. Discount stores are slowly arriving in India and

industry insiders feel they will spearhead a revolution in organized retailing. On the list of

topretailers in the world, quite a few are discounters. Around 60% of the business abroad

come’s from this format. Incidentally, the largest retailer in the world, Wal-Mart, is a discount

store. Margin Free was registered as a co-operative society in 1993 in Kerala and entered the

supermarket business in 1994. It is run by the Consumer Protection and Guidance Society, a

charitable organization based in Thiruvananthapuram. Today, it has emerged as India's number

one supermarket chain with 150 stores and a turnover of Rs. 450 crores. Margin Free purchases

directly from manufacturers at ex-factory price and sells at lower prices than the MRP, as it

eliminates the margin accrued in the traditional manufacturer-stockist-wholesaler-retailer

network.

Margin Free takes extreme care while pricing the products through its entire stores. It has

employed software which evaluates the price by minimizing profits. Every store is computerized

and utilizes the software to determine the pricing. This helps in ensuring that the products are

rationally priced .

Margin Free has found exceptional success in its scalable franchised model. It is now looking to

upgrade to a central warehouse concept. which will help it manage growth further. The success

of Subhiksha and Margin Free indicate that the discount war will hot up in the coming months

but it will be the customer who will emerge as the final winner.

Margin Free also gets an average credit of 20-22 days from suppliers, which it sells, on an

average in 10 days, thereby even earning a notional interest on its sales also. Its strategy has

made it flush with funds, which can finance further expansion.

Margin Free uses its customer base as a bargaining power to strike discount deals. Any dealer

who wants to set up a Margin Free store has to buy at least rupees one lakh worth of share of

the main Margin Free holding company. Margin Free has a consumer base of 6 lakhs and it sells

them consumer cards at Rs. 40 per year

Customers who buy using this card get discounts on bulk purchases and also on government

subsidized products is like Rs. 2 per kg rice. The stores are now opting for a major expansion

drive. A key part of this is the introduction of private labeling, which is the sea son's flavour in

the retailing industry. For the purpose they have shortlisted 15 items - all generic labels like

rice, sugar, etc. - and will add to the list in future.

Hence, they will be in a better position to provide quality stuff at considerably low prices within

easy reach of an average middle-class family. For example, a packet of tea which sells for an

MRP of Rs. 120 at one of the corporate retailers, will be available for Rs. 90 at the Margin Free

stores.

The chain is now planning to open huge Margin Free hyper markets, The first such hyper

market, featuring an array of wares and spread over 50,000 square feet of well-laid out space,

is planned to open at Ernakulam. The two other hyper markets would be opened in

Thiruvananthapuram and Kozhikode.

If the success of retail activity is measured in the number of outlets, the existing 240-odd chain

of franchisees must have already made Margin Free the largest 'pure retail chain' (as distinct

from retailers who are manufacturers) in the private sector Even going by the number of

footfalls, the Kerala-based retailer must have already beaten competition by a handsome

margin. The hyper markets will feature almost all conceivable retailing products under one roof

- textiles, leather, cosmetics, provisions, electronic goods, consumer durables, grains; and

grocery. As for ambience and class, the y are most likely to resemble the Giant retailing chain

operating out of Hyderabed and other cities.

The hyper market would not dabble in imported items - Chinese or otherwise - that are flooding

the retail market right now. The cooperative society is in the process of mobilizing resources for

the hyper market initiative. It plans to rope in outside investments over and above what the

Consumer Protection and Guidance Society hopes to raise on its own.

The Society chose Ernakulam first because it happens to be the most commercialized city in the

state Also, the comparable purchasing capacities are higher there. The nomenclature for the

hyper market has a Margin Free prefix to it, seeking to build on the enormous trust that the

discount chain has been able to build over a span of eight years of existence.

The management feels that the Margin Free retail chain has been able to earn the wholesale

trust of consumers in a very short span. However, in its journey to success, the Margin Free

stores have made life slightly uncomfortable for entrenched interests who have, on one hand,

been fleecing consumers and on the other, resorting to indiscriminate under invoicing to avoid

tax.

The latter leads into a loss of crores of rupees in realizable revenue for the state government.

Every month, Margin Free is opening up to 12 stores and the number has grown to 241 at last

count. The chain has spread to literally all parts of Kerala. It has seven franchisees in

neighboring Tamil Nadu already and two in Karnataka. The overall turnover has grown to Rs.

600 crore.

Questions :

(a) What has been the role of pricing strategy in the success of Margin Free Markets?

(b) What are the salient features of Margin Free Market pricing strategy?

(c) Analyse the external and internal factors that have made it possible to sustain the present

pricing strategy of Margin Free Market.

(d) Discuss the limitations of the existing pricing strategy of Margin Free Market. Suggest

appropriate changes.

CASE NO 2

Mr.Kamesh, a middle aged graduate business man owns and runs a 12M 50 years old gift items

emporium which he had inherited from his late father about a decade back. This emporium is

the

oldest shop located in one of the busiest and highly commercial markets of South Delhi, which

is

surrounded by a series of modern retail shops each of them offering a variety and specialized

merchandise from mobile accessories to premium brand of apparels and other services to the

customers. The emporium as mentioned earlier is the oldest out let yet strategically located in

the

market place and stocks reasonably good merchandise. However, the outlet is very old and has

a traditional look without any changes since its inception. Since the last couple of years

Mr.Kamesh, was keenly observing and realized that despite being the oldest shop offering a

wide

range of merchandise at value for money prices and with a reasonably loyal clientele found that

the business was slowing down consistently signaling the onset of poor demand and thereby

affecting the sales and profits. Disheartened by the current state of the business Mr.Kamesh

was trying to identify and figure out the reasons for its poor performance and is all set to

improve the foot falls in the near future if he gets the right guidance and direction to turn

around.

Questions:

a)What kind of alternative strategies would you recommend to be undertaken to make the

emporium more attractive for the shoppers?

b)Elaborate on the key atmospheric components that Mr.Kamesh should focus upon.

CASE NO 3

The cola wars had become a part of global folklore something all of us took for granted.

However, for the companies involved, it was a matter of 'fight or succumb.' Both print and

electronic media served as battlefields, with the most bitter of the cola wars often seen in form

of

the comparative advertisements.

In the early 1970s, the US soft-drinks market was on the verge of maturity, and as the major

players, Coke and Pepsi offered products that 'looked the same and tasted the same,'

substantial market share growth seemed unlikely. However, Coke and Pepsi kept rejuvenating

the market through product modifications and pricing/promotion/distribution tactics. As the

competition was

intense, the companies had to frequently implement strategic changes in order to gain

competitive advantage. The only way to do this, apart from introducing cosmetic product

innovations, was to fight it out in the marketplace. This modus operandi was followed in the

Indian markets as well with Coke and Pepsi resorting to more innovative tactics to generate

consumer interest. In essence, the companies were trying to increase the whole market pie, as

the market-shares war seemed to get nowhere. This was because both the companies came out

with contradictory market share figures as per surveys conducted by their respective agencies –

ORG (Coke) and IMRB (Pepsi). For instance, in August 2000, Pepsi claimed to have increased its

market share for the first five months of calendar year 2000 to 49% from 47.3%, while Coke

claimed to have increased its share in the market to 57%, in the same period, from 55%. Media

reports claimed that the rivalry between Coke and Pepsi had ceased to generate sustained

public interest, as it used to in the initial years of the cola brawls worldwide. They added that it

was all just a lot of noise to hard sell a product that had no inherent merit

Questions:

a) Discus how to generate consumer interest.

b) How to create competence advertisement in external market.

D. SCRAP BOOK

Instructions

Scrap Book should cover all the relevant points & should be your own work based on

your own study & research, if the content is found to be copied exactly from the peer, it

won’t be considered for assessment.

The content in the Scrap book should be supported with the relevant diagrams, pictures,

images, flowcharts, newspaper advertisements, articles etc. wherever needed.

Student Name, Specialization, Scrap Book Topic must be clearly mentioned.

Take any TWO retail outlet of your choice that have failed in India and with respect to that

prepare a scrap book on the topic, ‘Failure of a Retail Outlet in Indian Market”.

E - THEMATIC PRESENTATION

Instructions:

Submission of handouts & a soft copy on [email protected]

Student Name, Specialization, Presentation Topic must be clearly mentioned.

Topic: Franchising in India

TAKE ONE EXAMPLE OF EACH SECTOR MENTION BELOW:

Education (one) &

Food& Beverages (one) &

Clothing & lifestyle (one)

The presentation must include all the operational aspects of the franchise.

mailto:[email protected]

RURAL MARKETING (406 MKT) Important Instructions:

1. The subject is evaluated on the basis of five components

Components Marks


B. Caselets 50

C. Field Visit Report 50

D. Situational Analysis 50

E. Scrap Book 50




submission sheets.

REFER BOOKS:

The Rural Marketing Book by Pradeep Kashyap & Siddhartha Raut Books Rural Marketing – Concepts & Practices by Balram Dogra, Karminder Ghuman Rural Marketing by R.V. Badi, N.V. Badi


Assignments are to be written in Assignment sheets Each question carries equal marks and all questions are compulsory 1. Briefly discuss the rural environment in terms of the infrastructure available for marketing.

How does this environment affect the marketing decisions and opportunities? Explain with

reference to

(a) Marketing of banking services

(b) Marketing of consumer necessities like toilet soap and detergents

2. What are the major features in the problem recognition, information search and alternative

evaluation process that as a marketer of utility products like cycles, you can expect in case of

rural customers?

3. How do factors like social class, reference groups and lifestyle vary between urban and rural

markets? What implications do these differences have for a marketer of insurance services?

Explain.

4. Explain the important communication concepts relevant to the rural markets. What is the

significance of usage of symbols and pictures, colour and music in rural marketing

communication? Discuss with suitable examples.

5. What are the key behavioural dimensions that must be considered while planning rural

distribution strategy? Explain with respect to:

(a) Economy range of detergents

(b) Cold drinks

6.What pricing method would you suggest for the following rural products :

(i) Mobile phones

(ii) Two wheeler

(iii) cooking gas stoves

7. Is it a right move for ITC, which already has a presence in Indian villages with special tie-ups

with farmers for tobacco cultivation, to enter into e-ventures?

(a) Will this model run successfully in the long run?

(b) What can ITC derive out of e-choupals?

(c) Will a company, which thinks of social marketing as its objective for rural development,

really succeed in winning the hearts of rural Indians? Is ITC going the right way in this initiative,

according to you?

8. Define Rural Marketing, explain the various transformations the Rural markets are witnessing

in the changing marketing scenario.

9. Looking at the profile of the rural consumers in India today, what are the key challenges

posed for Indian marketers in the rural market segments? Discuss with reference to an FMCG

product and a consumer durable product of your choice.

10. Discuss the various strategies marketers use for product modification decisions for the rural

markets, with the help of suitable examples. As the product manager of an established

consumer goods company, how would you handle the menace of spurious brands in the rural

markets?

B. CASELET

Solve all the cases in assignment sheets

CASE NO 1

Read the case given below and answer the questions given at the end of the case.

In a study conducted by ICICI it was found that:

Only 40 per cent of shops in small towns have electricity, while in feeder villages this

figure was 11 per cent.

Shops in towns were located on rented premises. while in interior villages in 88 per cent

of the cases the shops were located on owned premises and lacked electricity

In feeder villages, four fifths of the shops have one person working full time, while in

interior villages 70 per cent have two or three persons working on a part–time basis.

Over two-fifths of the retail outlets stocked eight to nine standard product categories.

It was found that three –fourths of the outlets that stocked eight to nine product

categories kept four items or less in each category, while one–fourth had five to six

items in each category.

The total number of items stocked in retail outlets was about 50 in interior villages and

115 in feeder villages.

The stock turnover ratio in the study is the number of times the stock is sold in a month.

This is obtained by dividing the stock level by monthly off-take. The ratio for toiletries in

interior villages was close to unity, while in the feeder villages two thirds had a ratio in

the range of two to three. The ratio of one indicates that on average interior village

shops had stocks for one month, while shops in feeder villages maintained stocks for

two or three months. The value of the stock turnover ratio in towns had a wider spread

and higher values in the range of three or even. five because of the wide variety of

products stocked.

Questions:

(a) Critically evaluate the above rural retail scenario for the marketer of consumer products.

(b) What implications does the above scenario have for the long – term distribution system

design of a multi–product necessity Goods Company wanting to make a foray into the rural

markets?

CASE NO 2

Agricultural extension is a national priority and support from the industry and other

organizations are sought by the government in this Endeavour. With the advancement of

agricultural technology and liberal market scenario, the service aspect needs reiteration and

further strengthening. A group of specialized people in agriculture, particularly those who

intend to take up export oriented agri-business, will heavily depend on professionalized

extension services for which they will be willing to pay. Some of the grow ers, through their

associations like Seed Growers Association, Grapes Growers Association, have organized

themselves for obtaining tailor made extension support. The large majority of small and

marginal farmers will, however, look forward to the government system and mass media for

access to information on latest technological advancements. Consultancy services in agriculture

sector are popping up but buyers are mostly large organizations or affluent farmers. Mr.

Sharma has a large grape growing vineyard in the Sholapur district Maharashtra, the crop is

generally exported and little is sold in the local markets in the past few years the crops

exported are being rejected in the Middle East Countries and Mr. Sharma is facing a strong

financial crisis. He is looking at some expert advice on the cultivation methods, to regain his lost

markets and future growth, the advice from the some of the experts has not yielded the

desired results.

Questions

1. What is the role of the service providers in the agriculture markets.

2. What in your opinion should be the course of action for Mr. Sharma to regain the lost

markets.

3. Do you feel the Agriculture services have a future in agriculture markets?

CASE NO 3

Mr Verma of Master Detergent was a worried person; another competitor had launched a

special pack of a Detergent with a very competitive price and very aggressive advertisement

and Sales promotion schemes. The flagship brand of the company MAST was taking a beating in

the market and sales were going down . The company Master is a old company existing for

more than 60 years and has a strong brand equity in the Rural market. The products of the

company are well known and command a premium and have a niche place in the rural market,

there are also other products as Soaps Shampoos and other consumer goods the company

offers. The New Company does not have the long Range of products Master has but is strong on

Raw materials buying and thus offers very low prices to attract customers this according to Mr

Verma is a big strength. Mr Verma is sitting in his office trying to find a new marketing strategy

to regain the lost market share.

Questions:

Q1 Please help Mr Verma in his endeavor to regain the lost share and increase brand equity.

Q2 Should Mr Verma creates a separate marketing strategy for the rural markets?

C. FIELD VISIT REPORT

Instructions:

1. Student Name, Specialization, Project Topic must be clearly mentioned on the report.

Conduct a field study by talking to 50-60 rural consumers around your city or to people with a

rural background, collect information on what are the most influential reference groups for the

following products and services purchase decision for the rural consumers. How is this influence

exercised?

1. Purchase of a tractor

2. Decision to send a child to high school outside the village

3. Purchase of insurance

4. Purchase of household detergent

You can make your assumptions. Submit in MS Word with maximum 3000 words and also have a power point presentation

ready.

Hard copy and soft copy on [email protected] of report & PPT (10 slides maximum)

is expected.

D. SITUATION ANALYSIS

Submit Situation 1 & 2 analysis on assignments sheets and situation 3 analysis in MS Word

and PPT submit hard and soft copy)

Situation One

On the basis of your understanding of the rural buyer behaviour, what sales promotional

programmes would be most successful for?

1. Bio fertilizers

2. Launch of a brand of cold drinks for the rural markets .

How would you plan the sales promotion effort in each case?

Situation Two

You have been retained by an FMCG company to assess the market potential of their well

established brand of toothpaste in the rural market in a part of Central India. Knowing that the

awareness of oral hygiene products in the belt is low, give your course of action.

Situation Three

Design an event for promoting MBA institute in rural area

E. SCRAP BOOK

Prepare a scrap book on the topic ‘ITC experiment of e-choupal ’,

The scrap book should cover following points:

Origin

Present coverage of e choupal

Role of choupal sanchalak

Current activities being undertaken by e choupal

INTERNATIONAL MARKETING (408 MKT) Important Instructions:


Components Marks


B. Caselets 50

C. Thematic Presentation 50

D. Scrap Book 50

E. Industry Analysis 50




submission sheets.

REFER BOOKS:

International Marketing by Rajgopal, Vikas Publication, New Delhi


Assignments are to be written in Assignment sheets Each question carries equal marks and all questions are compulsory Q1. Explain the concept of EPRG model in the evolution of global marketing with the help of suitable examples. Q2. Explain the different kinds of channel partner options available before an international marketer. Q3. Distinguish between direct and indirect distribution channels in international marketing with relevant examples.

Q4. (a) As a first time exporter of handicrafts, what are the options for receiving payment

available to you? Which mode of payment would you prefer and why? (b) Explain various

elements of cost for computing export pricing.

Q5. Differentiate between adaptation and standardization strategies in international

advertising. Explain the relative advantages and disadvantages of the two strategies in

international advertising.

Q6. Suggest a frame work for preparing a marketing plan for export of processed food (Indian

Cuisine) to the U.K. and the U.S.A.

Q7. How would you go about selecting a few possible markets internationally for auto

components?

B. CASELETS

Caselets to be solved and to be written in Assignment sheets

CASE NO 1

India has been the home of Ayurveda. But, until the early nineties, people preferred Alopathy.

The reason behind this preference was the feeling that allopath gives quick relief and also it has

a cure for practically everything. During this course, very little was done to market Ayurvedic

medicines in India. Obviously, the market got restricted. A Himalaya drug has been a key player

in Ayurvedic medicines in India. But its product never caught the fancy of Indian customers,

mainly due to the lack of information and other marketing deficiencies the company, along with

the brand name, did specify that the medicines are proprietary Ayurvedic medicines. The

consumers often overlooked the information and the market remained restricted. Also no

serious efforts were made to promote to brands. In order to change the things in his favor to

cash-in on the so called “Ayurveda fever “the company changed its strategy. Instead of naming

its products independently, the company used a brand name viz. “Ayurvedic concepts” and

started advertising the same. This immediately caught the fancy of the customers and the

market started expanding. One very important aspects stressed by the company were that the

company has no side effects.

a) What should the company do to maintain its position in the market?

b) Suggest any two strategies for a successful entry into the global market.

CASE NO 2 A major cereal anufacturer produces and markets standardized breakfast cereals to countries

around the world. Minor modifications in attributes such as sweetness of the product are made

to cater to local needs. However, the core products and brands are standardized. The company

entered the Chinese market a few years back and was extremely satisfied with the results. The

company's sales continue to grow at a rate f around 50 percent a year in China and other Asian

countries, and based on the market reforms taking place, the company started operations in

India by manufacturing and marketing its products. Initial response to the product was

extremely encouraging, and within one year the company was thinking in terms of rapidly

expanding its production capacity. However, after a year, sales tapered off and started to fall.

Detailed consumer research seemed to suggest that while the upper-middle social class,

especially families where both spouses were working to whom this product was targeted

adopted the cereals as an alternative meal (i.e., breakfast) for a short time, they eventually

returned to the traditional Indian breakfast. The CEOs of some other firms in the food industry

in India are quoted as saying that non-Indian snack products and restaurant business are the

areas where MNCs can hope for success. Trying to replace a full meal with a non-Indian product

has less of a chance of succeeding. You are a senior executive in the international divisions of

this food MNC having done your post-graduate qualification in management from DIMR and

with several years of experience of operating in various countries in a product management

function. You have been appointed head of the fact finding mission to determine answers to

these specific questions. What, in your opinion, would be answers to these questions?

(a) Was entering the Indian market with a standardized product a mistake? Justify.

(b) Was it a problem of the product, or the way it was positioned?

(c) Given the advantages to be gained through leveraging of brand equity and product

knowledge on a global basis, and the disadvantages of differing local tastes, what would be

your strategy for entering new markets?

CASE NO 3

A major cereal manufacturer produces and markets standardized breakfast cereals to countries

around the world. Minor modifications in attributes such as sweetness of the product are made

to cater to local needs. However, the core products and brands are standardized. The company

entered the Chinese market a few years back and was extremely satisfied with the results. The

company's sales continue to grow at a rate of around 50 percent a year in China and other

Asian countries, and based on the market reforms taking place, the company started operations

in India by manufacturing and marketing its products. Initial response to the product was

extremely encouraging, and within one year the company was thinking in terms of rapidly

expanding its production capacity. However, after a year, sales tapered off and started to fall.

Detailed consumer research seemed to suggest that while the upper-middle social class,

especially families where both spouses were working to whom this product was targeted

adopted the cereals as an alternative meal (i.e., breakfast) for a short time, they eventually

returned to the traditional Indian breakfast. The CEOs of some other firms in the food industry

in India are quoted as saying that non-Indian snack products and restaurant business are the

areas where MNCs can hope for success. Trying to replace a full meal with a non-Indian product

has less of a chance of succeeding. You are a senior executive in the international divisions of

this food MNC having post-graduate qualification in management from DIMR and several years

of experience of operating in various countries in a product management function. You have

been appointed head of the fact finding mission to determine answers to these specific

questions.

What, in your opinion, would be answers to these questions?

(a) Was entering the Indian market with a standardized product a mistake? Justify.

(b) Was it a problem of the product, or the way it was positioned?

(c) Given the advantages to be gained through leveraging of brand equity and product

knowledge on a global basis, and the disadvantages of differing local tastes, what would be

your strategy for entering new markets?

C. THEMATIC PRESENTATION

Select any ONE INDIAN COMPANY of your choice and study its marketing mix and its operations in India and any one of the foreign countries. Make a comparative analysis on following parameters and submit it in report format and Power point presentation soft and hard copy (MS WORD & PPT)

1. Business Model: International Market Entry Strategy

2. Target market. Consider the following: a. Demographics (age, gender, income, occupation)

b. Psychographics (lifestyles, leisure time)

c. Geographic (town, state, region, etc.)

3. Consumer Behaviour pattern

4. Product Strategies: Product design & benefits, managing product line, product life cycle, new products introduced, branding, packaging & labeling

5. Pricing: factors affecting international price determination, terms of sales, pricing strategies, the cost of transport, tariffs or import duties, exchange rate fluctuations personal disposal incomes of the target market the currency they want to be paid in and the general economic situation of the country and how this will influence pricing.

6. Distribution: structure of distribution system, channels, their roles and function. Selection & managing overseas agents and international supply chain management.

7. Promotion : promotion tools used, push & pull strategy, global media strategy

D. SCRAP BOOK

Instructions

Scrap Book should cover all the relevant points & should be your own work based on

your own study & research, if the content is found to be copied exactly from the peer, it

won’t be considered for assessment.

The content in the Scrap book should be supported with the relevant diagrams, pictures,

images, flowcharts, newspaper advertisements, articles etc. wherever needed.

Student Name, Specialization, Scrap Book Topic must be clearly mentioned.

Take any Indian Two Automobile Companies of your choice and with respect to that prepare a

scrap book on the topic, ‘Automobile Company (Name of the Company): Marketing

Subsidiaries in Foreign Markets”.

E. INDUSTRY ANALYSIS Individual Activity

Submission in softcopy [email protected] & hardcopy (MS WORD & PPT)

mailto:[email protected]

Select any ONE FOREIGN COMPANY of your choice and study its marketing mix and its operations in its own country and in India Make a comparative analysis on following parameters and submit it in report format soft and hard copy (MS WORD & PPT)

1. Business Model: International Market Entry Strategy

2. Target market. Consider the following: a. Demographics (age, gender, income, occupation)

b. Psychographics (lifestyles, leisure time)

c. Geographic (town, state, region, etc.)

3. Consumer Behaviour pattern

4. Product Strategies: Product design & benefits, managing product line, product life cycle, new products introduced, branding, packaging & labeling

5. Pricing: factors affecting international price determination, terms of sales, pricing strategies, the cost of transport, tariffs or import duties, exchange rate fluctuations personal disposal incomes of the target market the currency they want to be paid in and the general economic situation of the country and how this will influence pricing.

6. Distribution: structure of distribution system, channels, their roles and function. Selection & managing overseas agents and international supply chain management.

7. Promotion : promotion tools used, push & pull strategy, global media strategy

MARKETING TO EMERGING MARKETS & BOTTOM OF THE PYRAMID (414MKT)



Components Marks


B. Situation Analysis 50

C. Project Proposal 50

D. Thematic Presentation 50

E. Scrap Book 50




submission sheets.

REFER BOOKS:

The Fortune at the Bottom of the Pyramid, Prahalad, C.K., Pearson –Singapore.

We are like that only, Bijapurkar, R. (2007), New Delhi: Penguin Portfolio.


Assignments are to be written in Assignment sheets Each question carries equal marks and all questions are compulsory Q1. Are Emerging Markets the Next Developed Markets? Q2. a. Differentiate between emerging markets and BOP markets. b. C.K Prahalad‟s 12 Principle Q3. What are the key behavioural dimensions that must be considered while planning rural distribution strategy? Explain with respect to: (a) Economy range of detergents (b) Cold drinks Q4. The recent trends of Indian MNCs engaging NGO network and women groups in rural marketing of FMCG products-Discuss. Q5. Looking at the profile of the rural consumers in India today, what are the key challenges posed for Indian marketers in the rural market segments? Discuss with reference to a consumer durable product of your choice.

B. SITUATION ANALYSIS

A student hails from a small town of Maharashtra and has completed his Bachelor’s degree and is planning to peruse his further education in Pune. Prepare a report which should cover following elements:

Identify all the needs (course, hostel, etc), Identify the emerging markets Design the marketing strategies for the emerging market Design a campaign

You can make your assumptions.

Submit in MS Word with maximum 3000 words and also have a power point presentation

ready.


is expected.

C. PROJECT PROPOSAL

Study & Analyze the impact of Corona on the market (Any One Sector). Identify an opportunity for Product/Service Post Corona. Design a Business Proposal for the same. Submit in MS Word with maximum 3000 words and also have a power point presentation

ready.


is expected.

D. THEMATIC PRESENTATION

Identify a product which was targeted/ launched for BOP market. Discuss the strategy with reference to four element of BOP strategy.

Submit a Power Point Presentation for the same.

Hard copy and soft copy on [email protected] of & PPT (10 slides maximum) is

expected.

E. SCRAP BOOK

Prepare two scrap books on following topics:

1. C.K Prahalad’s 12 principles

2. Study all these Business Model of Unilever's Project Shakti in India,

Nestle Milk District in China,

Manila Water Company in Philippines,

Appro TEC NGO in Africa

Arvind Eyecare Hospital in south India

Prepare a scrap book on your learning’s through each Business Model.

Documents

DNYANSAGAR INSTITUTE OF MANAGEMENT & RESEARCH …dimr.edu.in/wp-content/uploads/2020/03/MM.pdf · The Gap Model of service quality identifies the five gaps that can cause service