Friday, 31 January 2020

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Brand Management
NMIMS SOLVED ASSIGNMENTS
NMIMS SOLVED BRAND MANAGEMENT 2020 ASSIGNMENTS
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1. An entire generation of Indian TV viewers grew up on some terrifying advertising. Cease Fire commercials had conflagrations breaking out in urban settings as householders went about, oblivious. And then there was the ad for Saffola, full of ambulance lights and sirens, panic-stricken faces and heart rate monitors. The brand called itself ‘Life Insurance’, positioning the oil as a bulwark against heart disease. And the strategy worked with Saffola being among the first brands to talk about health — albeit in a very panic inducing manner. The longevity of the `1000 crore plus brand can be traced to that strong positioning. Chief marketing officer, Anuradha Aggarwal says: “Very early in the journey, we found an amazing, unique place of heart health. Someone with fore- sight chose to do fear oriented ads and the rest, as they say, is history.” But only a small chunk of history. Over the years, Saffola realised merely scaring consumers into buying was perhaps not the best strategy. From fear it moved to convincing at risk consumers to adopt better, healthier practices. Aggarwal says, “We moved from pure fear to things that strike fear: the signs of the unhealthy heart.” The brand also acknowledged the difficulty in getting people adopting a healthier lifestyle with its ‘Kal Se’ commercial about a serial procrastinator, who’d rather let his kid ride the exercise cycle, or who changes into gym clothes only to fall asleep again. However, consumers and the category were moving a lot faster than the brand. Even as Saffola pitched itself to consumers showing the first signs of slowing down, the broad trend was preventive: not allowing one or one’s family members to get to that stage in the first place. Says Aggarwal, “We realised Saffola was in danger of becoming the oil for the unhealthy as opposed to the oil for people who want to be healthy and have an active, fit heart.” The brand is now about a continuous investment in health.

A strategy that’s driven its expan- sion into adjacent categories. Saffola has the credibility required for consumers to comfort- ably place its products on the dining table. Besides, through variants like flavoured oats — a category that Saffola claims leadership in — the brand can comfort- ably ride the everyday health wave. Saffola is gunning for ` 200 crores in this space by 2018, according to its 2015-16 annual report. Says Aggarwal, “We are market leaders in flavoured oats because we’ve been cracked a fantastic product suitable for the Indian palate.” Saffola continues to be the undisputed leader in premium health oil, according to Aggarwal. Even at a time when the affluent Indian’s obsession with health is leading to them buy super premium olive oils at two or three times the price. The brand is meeting the challenge with new blends like Aura a combination of olive and flaxseed oil. On the communication front, Saffola has moved past its scare mongering on TV. It runs its own website fitfoodie which has healthy recipes of traditional favourites ratified by nutritionists and dieticians.

Under Saffolalife, an initiative begun in 2005, the brand pro- motes healthy lifestyles and organises heart health checks. When asked how malleable the brand is, Aggrawal believes, “We’ve succeeded when there was a fit and coherence and a fundamental difference from the rest of the world. We are strongly positioned on proactive and preven- tive heart health, and these conditions have to be met.” It also explains why variants like finger food brand Zest failed. Says Aggarwal, “We needed a go to market that understood impulse purchases and the product was not as good. After that, we’ve made sure we have very hard internal guidelines for product development. Unless we meet those standards, the products don’t go out.” Saffola’s brand journey finds favour with an Indian marketer with considerable retail and FMCG experience, who wishes to remain anonymous.

He says, “Given there was no awareness of health, Saffola used fear and people bought it. But now with the entire country having a consciousness of health and gym culture coming in, it’s the right transition.” He believes the expansions make sense given Marico’s two flagships: Parachute and Saffola earn their spurs in categories where growth potential is limited. And so, it’s necessary for Parachute to extend into skin and body care and Saffola to take on a more overarching health plat- form. He believes, “20 or 30 years ago, people worried about health only once they discovered they had problems. Today, everyone is conscious of being healthy and wanting to look young.” He however believes Saffola needs to make a stronger play for the millennial demographic: “It’s seen as mama papa brand. But the 30 year and younger demographic are willing to pay premium. Brands need to change with the world. Can it be health for youngsters or does it want to be an older consumer’s health brand is an answer only Saffola can give.
(Source:https://brandequity.economictimes.indiatimes.com/news/business-ofbrands/ the-saffola-story-from-scare-to-care/59765523) Evaluate the positioning of Saffola and discuss how the positioning strategy has led to the brands success. (10 Marks)

2. Bollywood star Salman Khan is returning to the cola space after a gap of three years, this time to endorse brand Pepsi, a move that has surprised a few experts. The two-year deal is estimated at Rs 15 crore, two external industry officials said.
A PepsiCo spokesperson confirmed the signing up of Khan as new brand ambassador of Pepsi but declined to confirm the financials of the deal.
“The year 2020 will see brand Pepsi create a scale 360-degree campaign that will reflect the self-confidence of today's youth as effortless as Salman,” the person said.Brand Pepsi will base its summer 2020 campaign on Khan’s upcoming action comedy movie Dabangg 3, the spokesperson said. A few marketing experts expressed surprise at the PepsiCo move, considering Khan’s macho image vis-à-vis Pepsi’s more romantic, playful image, plus the actor’s age and some controversies he has been associated with.
To amplify these efforts, Pepsi released the Har ghoont mein swag “anthem” featuring Patani, Shroff and rapper Badshah. Released by T-Series the song is available for streaming on YouTube, Gaana, Jio Saavn, Hungama, Amazon Prime Music, Spotify, Wynk, iTunes and Apple Music. With music and dance covered, next up was cricket.
PepsiCo which has an on-going partnership with the Board of Control for Cricket in India (BCCI) leveraged its sport association during India versus Australia series in February. There the swag symbol took center stage in stadiums and on TV screens. Says Bhagat, “This allowed us to bring music and cricket together as one popular music performer announced the ‘Swagster of the match’, after each match, during the India-Australia series. For a ‘culture brand’, it is important to dive into all these three streams.”

Hooked or not?
“Even as the cola companies are trying to move towards water and juices, the healthier drinks, the two companies cannot give up on their mainstay brands just yet, that is, the colas,” says Sunil Alagh, founder and chairman, SKA Advisors, a consultancy firm.
Alagh believes the use of social media allows these companies to keep chatter alive around their main brands.
Industry watchers believe this campaign has helped Pepsi get its “mojo” back. Says brand consultant Harish Bijoor, “Pepsi has reclaimed its position among the youth. Through the campaign Pepsi can be seen talking to millennials in their language.” Former marketing director, PepsiCo India, Vani Gupta Dandia agrees. “Using TikTok and music streaming apps to release the anthem is a good way to extend the campaign. This allowed Pepsi to rebuild its brand equity,” says Dandia.
While the brand’s old tagline ‘Yeh dil maange more’ might be tweaked to ‘Yeh dil maange more swag’, what remains to be seen is how Pepsi’s newfound swagger converts to sales.

The Endgame
For categories like beverages, and particularly colas, distribution is the make-or-break game. Under the company’s ‘Away from home’ strategy, the beverage maker has tied-up with quick service restaurants Domino’s, KFC, Pizza Hut, Burger King and Subway and multiplex operator PVR. Says PepsiCo’s Tarun Bhagat, “An aggressive agenda has been drawn by the team to increase distribution across offline stores and online channels over the next five years.”

Swag Not War
Cola marketing has come a long way from the days of the legendary Cola Wars. Pepsi’s ‘Nothing Official About It’ that took the fizz out of the official sponsor of the 1996 Cricket World Cup is perhaps one of the greatest examples of ambush marketing. Pepsi’s current campaign couldn’t be farther from that traditional tactic. Says Lloyd Mathias, former head of PC marketing, HP Asia Pacific and Japan, “Cola as a category has lost its relevance among consumers, as electronics, apparels took over.” He adds, “As a result, ‘cola war’ as a marketing concept became redundant.”
(Source:https://economictimes.indiatimes.com/industry/services/advertising/salman-khan-is-pepsis-new-face/articleshow/72449728.cms)
(Source: https://brandequity.economictimes.indiatimes.com/news/marketing/blast-from-the-past-as-pepsi-comes-back-with-swag-this-summer/69657939)

Examine the brand personality of Pepsi and its relevance in a promising market like India. (10 Marks)

3. Hair oil and edible oil maker Marico will enter the Rs 4,500-crore skincare market in the country by extending its two-decade-old coconut hair oil brand, Parachute, to body lotion and other skincare products, a person directly involved with the development said.
First off the block will be a body lotion at entry-level pricing to compete in the mass segment, the person said on condition of anonymity. The company has carried out a low-key test exercise in the east,
The strategy is aimed at reducing dependence on Parachute hair oil,” the person said. “In this case, the company hopes to ride on Parachute’s purity and value-for-money attributes.” Marico CEO (consumer products business) Saugata Gupta declined comment.
The company will enter the cluttered skincare market under the Parachute Advansed umbrella and compete with Hindustan Unilever’s Vaseline and Pond’s, German company Beiersdorf ’s Nivea, L’Oreal’s Garnier and Johnson & Johnson’s Neutrogena.
Analysts and industry watchers say the success of the move will depend on how much marketing and distribution muscle Marico can infuse in the brand.
“Success of brand extensions are generally linked closely to the parent brand’s attributes; and depends on how closely these are aligned to the consumer’s perception of the brand,” says consulting firm AT Kearney Partner and VP Debashish Mukherjee.

The success of extensions of strong brands is not always certain. Cereal maker Kellogg’s extension to biscuits flopped.

Marico hasn’t had much success with brand extensions
But Reckitt Benckiser’s Dettol is a classic succession of an antiseptic medicinal liquid to antiseptic soap. Marico so far has had limited success with brand extensions.
Also, there is strong competition in the skincare market, although with an annual rate of 20% it’s one of the fastest-growing consumer product categories.
About six years ago, Marico had extended Parachute to shampoos, positioned on the ‘naturals’ platform. But that did not succeed. But Parachute Advansed has various haircare variants like styling products and after-shower gels.
Marico has a skincare presence with its Kaya skincare clinics. But it does not have a presence in the packaged skincare segment. Marico’s hair oil brands include category leader Parachute and Nihar, which it had acquired in 2006 for close to Rs 220 crore.
(Source:https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/marico-to-launch-parachute-into-skincare-market/articleshow/9865069.cms)

a. Evaluate the brand extension strategy of Parachute. (5 Marks)
b. Comment on the success probability of the brand extension and the potential benefits to the parent brand? (5 Marks)

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Consumer Behaviour
Internal Assignment Applicable for April 2020 Examination
CONSUMER BEHAVIOUR April 2020 SOLVED ASSIGNMENT
NMIMS MBA ASSIGNMENTS
NMIMS UNIQUE ASSIGNMENTS

1. Advertisers today face a challenge of “sensory adaptation”. It has become increasingly difficult to get the attention of and impress consumers. In terms of consumer perception, what is the relationship between sensory adaptation and absolute threshold? Name 3 ways in which marketers are overcoming the challenge of sensory adaptation.

2. Pooja is a stationary enthusiast. She loves collecting antique fountain pens, limited edition notebooks, state-of-the-art mechanical pencils, post-it notes in rare shapes, etc. She has an extensive collection of stationary which she has proudly built over many years. What is Fixated Consumption and Compulsive Consumption? What are the characteristics of a fixated consumer and a compulsive consumer? Which of the 2 behaviours is Pooja exhibiting?
(10 Marks)
3. a. Using an example, explain the 4 elements of Consumer Learning. (5 Marks)
3. b. Gifting is an interesting aspect of Consumer Behaviour because gifts represent more than ordinary purchases. They are associated with important and special events (e.g., Mother’s Day, birthdays, engagements, weddings, etc.) What are the different types of Gifting behaviours consumers may exhibit? (5 Marks)

Customer Relationship Management
1. In your opinion should marketers challenge their customers’ communities because they are not official? Justify your views with valid examples from the industry. (10 Marks)
2. Frame the 10 most critical criteria to develop a rich customer profile in your industry and specify the source of data collection for the same with appropriate examples. (10 Marks)
3. Aditi works in the US for a biomedical organization. They have clients located in different parts of the globe. Off late one of their most loyal clients from the Europe has been expressing their concern over service issues faced by them. Next quarter their contract ends and will be time for renewal. Aditi is unsure whether they will be able to sustain the business from their European client.

a. As per your understanding analyze the course of the relationship between the customer and the supplier in the above scenario? (5 Marks)
b. What hampers trust and commitment in a relationship and how can it be maintained? (5 Marks)

International Marketing
1. India is trying to promote ‘Make in India’ and has also recently opened up Defense sector. You are a strategy manager at Dassault, one of leading manufacturers of defense equipment. However, your boss wants to set up a new venture in Brazil. Please justify using Business Environment why you would like to set up in India instead of Brazil. (10 Marks)
2. You are the CEO of a competing brand of Starbucks but claim to offer more value for money. Your products cost less than Starbucks. You have also decided to enter India after seeing success of Starbucks. Evaluate any 3 entry options to enter into India. Which of the market entry options would you finally choose & why? (10 Marks)
3. Lemon Tree operates mid-premium hotels in India and position it for cost conscience corporate travelers. They have decided to enter European market now with 4 properties, two each in Germany & France.
a. Suggest what should be their pricing strategy for the European market. (5 Marks)
b. Suggest the possible brand positioning for their European market. (5 Marks)
Sales Management
1. Bajaj Electronics administers a Quarterly performance review for all its sales employees.
The below mentioned table provides the number of sales calls done by the sales people for the month of Oct- Dec 2019. You are the Area manager in charge of their performance. The performance standard set by the company is that every sales person must do 150 sales calls in every quarter.

Name of the executive
No. of sales calls
Ramnath
142
Tapan
160
Jeetendra
87
Saurabh
125
Bhaskar
92
How will you evaluate the performance of the sales executives as an Area Manager? What are the steps you can take to improve the performance?
2. Take an appointment and meet with a senior sales person from two industries – Pharma industry (such as Sun Pharma, Lupic, Dr. Reddy’s, Glaxo or any other company) and Engineering industry (such as L&T, BHEL, ABB, Siemens or any other company). Study and prepare the sales organization structure of these two companies.
3. Raymond Fibres Ltd is a fibre making company in India. They are predominantly in fashion wear from men and women. The fibre market is divided into natural and synthetic fibres. The company has 5 plants in India and employs over 700 sales people. The company competes with the Reliance group which is one of the leading synthetic fibre makers along with some global players such as DuPont. However, the company has been hit with the economic slowdown in the country. To make things worse, cheaper imports of fashion wear from China and e-commerce has affected store sales. The sales people in the company are feeling demotivated. The sales people have put pressure on the top management to improve their salary.

a. What alternatives will you suggest to the top management to improve the salary plan to the sales employees? (5 Marks)
b. What are some of the non-financial tools of motivation that you can use (5 Marks)
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