Discuss the challenges faced by Coke in the carbonated beverages segment
Discuss the challenges faced by Coke in the carbonated beverages segment
Marketing Management
Case Studies
Case (20 Marks)
Kaggi’s Food Co (KFC) is a large producer & seller of edible oils, flour, pulses, spices & some other food items. Over past ten years KFC could establish itself well with popular brand names for its produce. Oil brand “Sunrise” from KFC is very popular as low fat, healthy cooking medium. KFC has three mills, one each in Meerut, Dehradun & Lucknow. To avail tax benefit only spices are procured from small manufacturers who carry out their operations under strict supervision of KFC quality team. All other items are manufactured in company’s own mills. SO far entire produce of KFC is sold easily in northern region of seven states through loyal set of distributors & retailers. For past three years KFC has started feeling the pressure of competition, more in oil & flour brands. Apart from bundling free soap, detergent, pet jar etc., competitors have increased distributor & retailer margins on volume off take. The young and professional management team of KFC is confident of achieving targets and enjoying the scene. KFC mills are not very modern ; nevertheless, they are maintained well. Breakdowns and production stoppages are very rare. KFC has recently bought a large salt manufacturing facility in a coastal town. This mill produces good quality common salt on contract basis for two different brands. The previous owner found this arrangement very neat with assured and quick turn over-even though the profit margin is low. KFC did not wish to change the arrangement immediately, but thought building own brand for salt will not be difficult. It will increase profit margin also. Added attraction is that branded salt can easily be sold through existing channel. Market for branded salt is already over crowed. There are many national and local brands. The leading brand TATA is there for over 30years. There are other big national brands with deep pockets for promotion such as Nirma, T-series, Dandi, Catch etc. Each brand is trying to take a particular but different position. While common planks are crystal clear, white & free flow, the special positions are iodized, triple refined, from the house of TATA etc. Prices & packing are almost same. Only Dandi & Catch are costlier. Catch sells in dispensable container of 400 gms also
Answer the following question.
Q1. What core product is Kaggi’s Food selling when it sells edible oils?
Q2. Carry out a SWOT analysis for Kaggi’s Food.
Q3. Suggest some differentiators to build up competitive advantages for KFC’s brand of salt
Q4. What will you suggest to ensure trial & feedback from customers of salt during launch?
CASE STUDY (20 Marks)
The Baron group entered the Indian consumer durables market in December 1994, and the markets were never the same again. Over the next few years, at the corporate offices of competitors like Videocon, Philips and Mirc Electronics, it was the same story – they were all making frenzied attempts to hold on to declining market shares. Baron’s initial product offering, an Akai color television (CTV), was priced at Rs 13,000 – while the market price was Rs 16,500. This was clubbed with an exchange1 offer on old music systems and TVs and free-gift schemes whereby 14-inch CTVs, mobile-phones, refrigerators and Bajaj Sunny mopeds were offered free on the purchase of a 21-inch CTV. These moves, combined with Baron’s full-page advertisements that appeared regularly in the national media, lured buyers all over the country. The move changed the CTV market share pattern very soon, with Akai’s sales increasing from 2500 CTVs in 1993-94 to 4.29 lakh CTVs in 1997-98. In December 1998, Baron repeated the success story with the Aiwa brand in the hi-fi audio systems segment. Within 5 months of the launch, Aiwa replaced Philips as the segment leader, garnering a 45% market share, as compared to Philips’ 17.2% share. The launch of the TCL range of consumer electronics in 1999 also took the market by storm as the China based TCL was known for its dirt-cheap products. With almost every new scheme and every new tie-up, Baron unleashed a new war in the Indian consumer electronics market. A majority of the players began indulging in ‘one-upmanship’ on the pricing and promotion fronts. However, they soon realized that it was not very easy to match Baron’s schemes and prices. The question on everyone’s mind was the same. How did Baron do it? The Mulchandani family (Baron group)had started its consumer electronics business in the 1970s. The group began with marketing and distributing products under the Bush brand name. Under the leadership of J.R.Mulchandani, Bush emerged as one of the top brands in the audio cassette player market. However, in the next two decades, Bush failed to withstand the onslaught of companies that were financially superior and had greater marketing savvy.
Answer the following question.
Q1. Give detailed reasons for the boost in sales of Akai color televisions marketed by The Baron group.
Q2. What was the marketing strategy adopted by the Baron group to boost sales.
CASE STUDY (20 Marks)
The Indian watch industry was in a state of flux and market leader ‘Titan’ had to gear up its marketing strategies to retain its brand positioning. Titan as a brand had established itself for its style and choice of design. Titan’s clear segmentation strategy had served it well and the challenge Titan faced was to combat the onslaught of popular international brands like Rado and Rolex. Would Titan be able to match up by leveraging on its brand equity?
Answer the following question.
Q1. State the challenges faced by an Indian watch brand due to the entry of foreign players
Q2. Analyze the impact of brand equity for market sustenance.
CASE STUDY (20 Marks)
The changing attitudes of consumers towards healthier lifestyles and the subsequent decline in the CSD consumption during the 1990s led the soft drinks manufacturers to push non-carbonated beverages too. Not to be left behind, over a century old beverage maker Coca-Cola Inc., having the world’s most ubiquitous brand – ‘Coca-Cola’ – began to concentrate on the non-carbonated beverages segment since the end of 1990s. It began offering a diversified range of products like coffee, tea, health drinks, sport drinks, juices, bottled water etc., under various brand names. Even though Coca-Cola has a strong brand name, it has not extended the ‘Coca-Cola’ brand to its non-arbonated beverages and is promoting these beverages under different brand names. This case facilitates discussion on whether it is the right move for Coca-Cola to adopt a multibranding strategy while holding one of the world’s strongest brands.
Answer the following question.
Q1. Analyze Coke’s continuous brand building efforts in the carbonated beverages Segment
Q2. Discuss the challenges faced by Coke in the carbonated beverages segment
Discuss the challenges faced by Coke in the carbonated beverages segment
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