Mkt501 Assignment No. 1 solution
Thursday, April 28, 2011 Posted In Mkt Edit ThisSemester “Spring 2011”
“Marketing Management (MKT501)”
Assignment No. 01 Marks: 20
“Case Study”
Right Marketing Mix Combination Framework: Analytical Tool to understand the
success or failure of a brand There has been a simple secret to success in marketing and that is designing and developing right marketing mix combination for any product offered by any business. Generally it is advocated that if a right product is delivered to a right customer at a right price and at a right place and supported by right promotion it succeeds to win customer. Some practitioners and theorists in marketing believe that mainly the time factor makes the four Ps right which is partially true because time is not the whole but a partial factor. What actually makes marketing mix combination right? This is known to marketing students and practitioners that marketing mix is the combination of four Ps of product, price, place & promotion which if match with their corresponding four Cs of customer solution, customer affordability, customer convenience and customer communication result in right marketing mix combination.
It is clear from the introductory paragraph that if for any market offering marketers develop 4Ps according to 4Cs then success is guaranteed. And failure to match 4Ps with 4Cs may lead to the failure of a brand/market offering. We all know that each P of marketing mix has further parts and details which fulfill different needs and sub needs of a customer. Here we are not concerned with the details of four Ps rather our sole intention is to use right marketing mix combination as a framework to analyze the causes of success and failure of a brand/ market offering. Following is the concept of Right Marketing Mix Combination Framework:
Right Marketing Mix Combination Framework:
Product Customer Solution
Price Customer Affordability
Place Customer Convenience
Promotion Customer Communication
Question is this that what is presented in the table above is not new except its title as it is being used by theorists and practitioners in marketing after this idea was presented by James Culliton in 1948, then what is new? In fact this framework is being used in a new way as an analysis tool to understand the success and failure of a brand/market offering.
How to use?
Any product or brand or market offering which needs to be analyzed it should be selected one by one to be tested on each P vs C criterion to judge whether each P matches with its corresponding C or not. If all Ps match with all corresponding Cs then it means from marketing point of view product is a success and if the case is otherwise then reason of failure will be obvious.
Now to better understand the things we first take the examples of some failed and then some successful brands/market offerings. Candia a brand of drinking milk introduced by then CDL (Now Haleeb Foods) under the license of a European company in plastic bottle but it failed soon after its introduction. If we try to know the reason by applying the framework we will do it as follows:
1. Was product right? or was it as per the solution customer was looking for?
Analysis shows that Candia’s color was not as white as Pakistani customers expect and its packaging was also not liked. Second it was positioned as drinking milk whereas in Pakistan milk is considered a multi functional product so product was not right as it was not as per the solution customer was looking for.
2. Was price right? or Was it affordable for the customer or customer was ready to pay? Analysis shows that Candia was priced higher than other premium quality milk brands which was not justified given its product and rejected by customers. So its price was not right.
3. Was promotion right? or Was its message effectively communicated to the customer? Analysis shows that Candia’s message was well communicated so its promotion was right.
4. Was place right? Or was it distributed as per the convenience of customers?
Analysis shows that it was easily available so its distribution was also right.
Conclusion: Above discussion is the example of application of Right Marketing Mix combination Framework by which the reason of failure of a brand we have come to know and corrective measures can be taken to make offering right.
Assignment:
You are required to select any brand of a known company which has failed in the past and analyze it under the light of “Right Marketing Mix Combination Framework” discussed in the above short article. Aim of your analysis should be to identify the actual reason(s) of failure of that brand along with complete facts and figures available to you i.e. the source of information.
You are also required to advise corrective actions which could have been taken by the company to avoid the failure.
Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no 15 and reading handouts as well as
recommended text book).
2. Video lectures can be downloaded for free from Online VU Lectures.
Schedule
Opening Date and Time Apr 25, 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time Apr 28, 2011 At 11:59 P.M. (Mid-Night)
Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
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http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
• Every student will work individually and has to write in the form of an
analytical assignment.
• Give the answer according to question, there will be negative marking
for irrelevant material.
• For acquiring the relevant knowledge don’t rely only on handouts but
watch the video lectures and use other reference books also.
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Solution:
Price VS Customers AffordabilityPrice is not high it was same its competitors but there is lack of call and sms packages
Promotion right VS customer communication
Analysis shows that almost all the people using mobile know this company and its advertisement and massage is well defined.
Place VS Customer convenienceTarget market and place of promotion also right. Paktel connections are available from all market.
Conclusion
REASON WHY RC COLA LOOSED ITS MARKET IN PAKISTAN?
Pepsi Cola and Coca Cola stormed into the market. Advertising was minimal in Pakistan as compared to its competition. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent. RC finally stopped production somewhere in the early 90s. RC Cola failed in Pakistan because of its poor attention given towards the ad campaign. Even in Pakistan people used to drink RC Cola and they really liked it, but it’s all about many years ago in 1970's n 80'smay be because there was no other cola at that time. When other colas came they advertised and they did it so well that people were attracted towards them.
It is also about how u presents it, the looks of the product. RC Cola's bottle is not appealing and the regular one specially looks so thin, it seems as if it has less drink inside that is why the drink has reached its decline and rejection now in Pakistan. It is possible for them to rise again through the proper attention towards the advertising and the outlook of the product. It should be
appealing and beautiful, it should be trendy. That is what it needs and right advertising at the right time can do a lot, It needs to know the important about how can we market a product in a way that it can give a fashionable and trendy impact on the people.
A new marketing mix should be applied on the brand:
1) Product:
Some modifications will be done with the shape of the bottle specially the regular bottle because it seems to be thin and having lower volume compared to other cola-drink bottles. Just two categories will be launched, which will be RC Cola and Diet RC Cola to make the produced more focused. RC Cola has a unique crisp and clean taste and its consistent with its flavor no matter where you buy it. It has a refreshingly great taste even if it is not cold.
2) Price:
Following factors RC Cola should keep in mind while determining the pricing strategy. Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy their product. Price must be keeping the view of their target market. Incentive to Retailers will be given in the shape of:Following factors RC Cola should keep in mind while determining the pricing strategy.
Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy their product. Price must be keeping the view of their target market. Incentive to Retailers will be given in the shape of:
Deep Freezer, Return Tickets, Free Transportation Services. Incentive to Dealers will also be given like, The best dealer of the year is awarded with a brand new Suzuki Pickup. The second best is awarded with Motor Cycle. The third best is awarded with Return Ticket to Middle East. RC Cola will give special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products, some special packs like Pakkora Mix, ChatMassala, or Free Drinks with Liter Bottles are offered.
3) Place:
We will use push strategy for our product by using various promotional tactics and through media. Distribution will be divided in zonal basis, which will be 5 in number. We will directly approach retailer by providing credit facility and bonus in form of incentives. We will also provide trade allowances to our distributors and retailer to further intensify usage of push strategy. Other than these some special points are also being looked after by direct sales vehicles such hotels restaurants, public parks, big and reputed super stores etc. At Avari, Pearl continental, village, Seas magnificence etc. RC Cola directly distributes the products.
4) Promotion:
Comparative parity method will be used in which RC Cola will be telecasted with the competition in Coca Cola and Pepsi which are its direct competitors. Frequency of the RC Cola ads will vary from time to time. When the season comes RC Cola will do heavy advertisement especially in Ramdan days or Eid occasions etc.
( i) BTL:
A successful BTL advertisement program can be their most effective means of increasing consumer awareness, trial, and actual product purchases in Pakistan. BTL activities can be done in different shopping malls and crowded places
( ii) ATL:
Newspaper:
Top newspapers of the country like Dawn and Jung will be used to advertise the print ads as well as youth magazines will also be used to capture the interests of the target market. Different youth related competitions can be organized in BTL activities in which winners can be rewarded with RC Cola merchandizes.
TVC:
TVcommercials will be used to advertiser the brand and the frequency of ads will be greater specially on youth channels like Play TV, Aag, Mtv, G kaboom, Oxygene, etc. The theme of the first re-launching ad will be including like all the shots from the previous ads of the brand in black and white and then show youth related scenes and especially adventurous scenes as whole advertising campaign will be done on the theme of adventure.
Radio:
Surveys will be conducted in which young individuals will be asked which are those radio channels which they like to listen more. Radio spots will be used to advertise on those selected radio channels.
Billboards:
Billboards will be used to advertise on roads and buildings of highly dense areas and gorilla marketing will be used to directly strike the emotions of the target audience. Online advertisement will also be used, ads will be published through all the famous social networking websites like Facebook, Orkut, Twitter, etc.
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Question # 1:
As a marketing manager, what are the external factors you should consider in order
to make this product successful in the market? (10 Marks)
Solution
Whether launching a new product or a major new version of an existing product, the
biggest factors determining success actually take shape way before the product gets
launched. As with any product in a market, to find big success (or any success at all), a
number of things must all happen right and come together on launch day:
The product must be high-quality, rock-solid and actually deliver the value
promised so customers actually get the benefits they are seeking. This is critical
and must actually be verified with early customer testing and validation.
The product must be taken to market through high-volume, competitive routes to
market.
Products must meet a market’s needs better than the competition and customer
alternatives.
Go-to-market engine must buy into the product early and allocate resources to it
and sales absolutely must have early success at selling the product. If the product
isn’t really ready for prime time it is dead. And get this, because it’s supercritical.
Pre-launch market condition must create enough awareness with both prospective
customers and sales channels. That this new product is coming to enable the
product to gain enough early mindshare and traction that leads to both actual
proof and social proof that the product is ready for the market.
Question # 2:
As a marketing manager, explain the product decisions you should make in order to
be successful in the market? (10 Marks)
Solution
Seek differentiated, superior products
Plan and resource the market launch
Build tough go/kill decision points into your process
Build an international orientation into your new product process
Build in the voice of the customer
Up-front homework pays off
Organize around true cross-functional projects teams
Demand sharp, stable and early product definition
Solution:
Today we discuss failure of Paktel communication company in Pakistan and also compare the 4p,s with 4C,s. there are lot of reasons for the failure of the company like noise in call, coverage problem, network down problem. China bought this company and renovates this company. But failure of this company in Pakistan has several reasons.
Product VS Customers Solutions
Analysis shows that Paktel connection has low signals and not has much coverage in Pakistan. Its competitors are strong and providing the same facilities with sale rate and better quality.
Analysis shows that Paktel connection has low signals and not has much coverage in Pakistan. Its competitors are strong and providing the same facilities with sale rate and better quality.
Price VS Customers AffordabilityPrice is not high it was same its competitors but there is lack of call and sms packages
Promotion right VS customer communication
Analysis shows that almost all the people using mobile know this company and its advertisement and massage is well defined.
Place VS Customer convenienceTarget market and place of promotion also right. Paktel connections are available from all market.
Conclusion
So analysis of 4P,s vs 4C,s shows that the failure of Paktel company is quality of communication which are failed. There is lot of noise during call and also disconnection of call occurs. A lot of places and cities of Pakistan is not covered by Paktel.
China bought this company and establishes it with new name as Zong. Now Zong is going toward boom of industry and providing a lot of quality service to their valued customer
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RC COLA IN PAKISTAN:
RC cola was a very famous drink in Pakistan. It was widely known all over the Pakistan since the time of its arrival in the sub- continent which was the 70s having the same popularity like Coca Cola and Pepsi today. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent and in 90s; RC cola started to fade away due to some issues and stopped its production in Pakistan. RC Cola is currently not operating in Pakistan and if RC Cola wants to re launch in Pakistan, it may face strong competitors like Coca Cola and Pepsi is ruling the cola market here in Pakistan.
REASON WHY RC COLA LOOSED ITS MARKET IN PAKISTAN?
Pepsi Cola and Coca Cola stormed into the market. Advertising was minimal in Pakistan as compared to its competition. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent. RC finally stopped production somewhere in the early 90s. RC Cola failed in Pakistan because of its poor attention given towards the ad campaign. Even in Pakistan people used to drink RC Cola and they really liked it, but it’s all about many years ago in 1970's n 80'smay be because there was no other cola at that time. When other colas came they advertised and they did it so well that people were attracted towards them.
It is also about how u presents it, the looks of the product. RC Cola's bottle is not appealing and the regular one specially looks so thin, it seems as if it has less drink inside that is why the drink has reached its decline and rejection now in Pakistan. It is possible for them to rise again through the proper attention towards the advertising and the outlook of the product. It should be
appealing and beautiful, it should be trendy. That is what it needs and right advertising at the right time can do a lot, It needs to know the important about how can we market a product in a way that it can give a fashionable and trendy impact on the people.
A new marketing mix should be applied on the brand:
1) Product:
Some modifications will be done with the shape of the bottle specially the regular bottle because it seems to be thin and having lower volume compared to other cola-drink bottles. Just two categories will be launched, which will be RC Cola and Diet RC Cola to make the produced more focused. RC Cola has a unique crisp and clean taste and its consistent with its flavor no matter where you buy it. It has a refreshingly great taste even if it is not cold.
2) Price:
Following factors RC Cola should keep in mind while determining the pricing strategy. Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy their product. Price must be keeping the view of their target market. Incentive to Retailers will be given in the shape of:Following factors RC Cola should keep in mind while determining the pricing strategy.
Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy their product. Price must be keeping the view of their target market. Incentive to Retailers will be given in the shape of:
Deep Freezer, Return Tickets, Free Transportation Services. Incentive to Dealers will also be given like, The best dealer of the year is awarded with a brand new Suzuki Pickup. The second best is awarded with Motor Cycle. The third best is awarded with Return Ticket to Middle East. RC Cola will give special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products, some special packs like Pakkora Mix, ChatMassala, or Free Drinks with Liter Bottles are offered.
3) Place:
We will use push strategy for our product by using various promotional tactics and through media. Distribution will be divided in zonal basis, which will be 5 in number. We will directly approach retailer by providing credit facility and bonus in form of incentives. We will also provide trade allowances to our distributors and retailer to further intensify usage of push strategy. Other than these some special points are also being looked after by direct sales vehicles such hotels restaurants, public parks, big and reputed super stores etc. At Avari, Pearl continental, village, Seas magnificence etc. RC Cola directly distributes the products.
4) Promotion:
Comparative parity method will be used in which RC Cola will be telecasted with the competition in Coca Cola and Pepsi which are its direct competitors. Frequency of the RC Cola ads will vary from time to time. When the season comes RC Cola will do heavy advertisement especially in Ramdan days or Eid occasions etc.
( i) BTL:
A successful BTL advertisement program can be their most effective means of increasing consumer awareness, trial, and actual product purchases in Pakistan. BTL activities can be done in different shopping malls and crowded places
( ii) ATL:
Newspaper:
Top newspapers of the country like Dawn and Jung will be used to advertise the print ads as well as youth magazines will also be used to capture the interests of the target market. Different youth related competitions can be organized in BTL activities in which winners can be rewarded with RC Cola merchandizes.
TVC:
TVcommercials will be used to advertiser the brand and the frequency of ads will be greater specially on youth channels like Play TV, Aag, Mtv, G kaboom, Oxygene, etc. The theme of the first re-launching ad will be including like all the shots from the previous ads of the brand in black and white and then show youth related scenes and especially adventurous scenes as whole advertising campaign will be done on the theme of adventure.
Radio:
Surveys will be conducted in which young individuals will be asked which are those radio channels which they like to listen more. Radio spots will be used to advertise on those selected radio channels.
Billboards:
Billboards will be used to advertise on roads and buildings of highly dense areas and gorilla marketing will be used to directly strike the emotions of the target audience. Online advertisement will also be used, ads will be published through all the famous social networking websites like Facebook, Orkut, Twitter, etc.
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Question # 1:
As a marketing manager, what are the external factors you should consider in order
to make this product successful in the market? (10 Marks)
Solution
Whether launching a new product or a major new version of an existing product, the
biggest factors determining success actually take shape way before the product gets
launched. As with any product in a market, to find big success (or any success at all), a
number of things must all happen right and come together on launch day:
The product must be high-quality, rock-solid and actually deliver the value
promised so customers actually get the benefits they are seeking. This is critical
and must actually be verified with early customer testing and validation.
The product must be taken to market through high-volume, competitive routes to
market.
Products must meet a market’s needs better than the competition and customer
alternatives.
Go-to-market engine must buy into the product early and allocate resources to it
and sales absolutely must have early success at selling the product. If the product
isn’t really ready for prime time it is dead. And get this, because it’s supercritical.
Pre-launch market condition must create enough awareness with both prospective
customers and sales channels. That this new product is coming to enable the
product to gain enough early mindshare and traction that leads to both actual
proof and social proof that the product is ready for the market.
Question # 2:
As a marketing manager, explain the product decisions you should make in order to
be successful in the market? (10 Marks)
Solution
Seek differentiated, superior products
Plan and resource the market launch
Build tough go/kill decision points into your process
Build an international orientation into your new product process
Build in the voice of the customer
Up-front homework pays off
Organize around true cross-functional projects teams
Demand sharp, stable and early product definition
