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Internal
Assignment Applicable for December 2017 Examination
Brand
Management
Q1. Maruti has finally gained tremendous
success in the luxury Sedan segment after the launch of a separate brand Nexa.
Owing to this Hyundai, the other major player in the small car segment is
feeling the jitters. It feels that it too should follow the same strategy as it
is more known for small cars and except the Verna, all its other luxury sedans
have failed. Some analysts are even against the idea. Can you guide them on the
same?
Q2. Flipkart after receiving the latest
funding from Soft Bank, now wants to extend its brand in other areas as well.
The first new segment it wants to target is the car buying and selling segment.
It wants to come out with an extension called Flipkarz by end of 2017. Analyst
are skeptical about the same. Is it a good decision? What steps should Flipkart
follow to make it a success?
Q3. Analyze the below given Case study
and answer the questions below:
Snapchat is both a messaging platform and
a social network. It can't be used from the regular we and exists only as a
mobile app on your iPhone or Android smartphone. Users can “chat” with their
friends by sending them photos, short videos up to 10 seconds long. You can
sort of think of it to be like texting with pictures or videos. Text chats and
video calls are two other features that were added more recently to the app.
One of the most unique things about Snapchat is the ephemeral components of all
the content that gets shared on it. Photos and videos essentially disappear a
few seconds after they've been viewed by their recipients. Average revenue per
user was 90 cents in the first quarter, Snap said, up from 32 cents the same
quarter a year earlier but below the $1.05 per user in the fourth quarter of
2016.Snap's net loss widened to $2.21 billion, or $2.31 per share, in the first
quarter, from $104.6 million, or 14 cents per share, due to stock-based
compensation related to the IPO.
Facebook once failed to buy Snapchat;
ever since, it's tried to copy it, mostly without success. Until now.
Facebook's Instagram Stories, a clear Snapchat clone, has more daily users than
Snapchat itself - and parent company Snap Inc. should be very worried. Snap's
latest earnings report isn't helping either. On Thursday, the company said user
growth for the April-June period was a paltry 4 percent from the previous
quarter. Snap's stock, already down 44 percent since its initial public
offering in May, declined 14 percent, to $11.90, in extended trading after the
results came out. That's less than half of the $24.48 closing price on its
first trading day. While the doom doesn't spell imminent death, it's a sign
that Snapchat could be relegated to the side-lines as a niche app for young
people - or worse, a passing fad - rather than a major competitor for digital
ad dollars like Facebook and yes, even the struggling Twitter.
BY THE NUMBERS
Instagram recently disclosed that
Stories, which lets people share videos and snapshots in a continuous 24-hour
loop, has amassed 250 million daily users in the year since it launched.
Snapchat, in comparison, had 173 million in the second quarter - and that's all
of Snapchat, not just its version of Stories. Instagram in its entirety,
meanwhile, had more than 400 million daily users as of February 2017, the last
official count.
TO GROW OR NOT TO GROW
Facebook sends notifications for all
sorts of things, such as a friend doing a live video or another friend posting
something after an extended absence. Another might be on a new item for sale in
the service's "marketplace" section. These notifications - which
primarily appear in the Facebook app but can also be pushed to the phone's home
screen - can conceivably keep people returning day after day. While Snapchat
sends fewer notifications, it encourages daily use through Snap streak, which
calls out streaks in which two friends send each other snaps at least once for
more than three consecutive days. But it isn't working too well, as daily use
hasn't grown much.
RIVALS UPON RIVALS
Rivals don't always succeed. Facebook
recently shut down Life stage, which lets those 21 and under share photos,
selfies and videos with classmates. Life stage was aimed at high schoolers - a
big chunk of Snapchat's audience. Before that, Facebook killed Slingshot, another
Snapchat clone for sending disappearing messages. In turn, that followed the
demise of Poke, which also let people send photos and videos. All that followed
Snapchat's decision to rebuff Facebook's $3 billion offer for the service in
2013.But Facebook and others kept trying and trying, until Facebook succeeded
with Instagram Stories. Easy to use and piggybacking on Instagram's existing
popularity, Stories expanded Snapchat's idea to a broader range of users. While
Snapchat's audience is mostly teens and young people, on Instagram, anyone
might send a "story." Other messaging apps are looking to clone
Snapchat, too. Google is reportedly working on Stamp, which The Wall Street
Journal compared to Snapchat's Discover feature for letting people find photo
and video-heavy news items. While Google isn't commenting on Stamp, published
reports say the company is in talks with the likes of Vox Media and Time Inc.
to create such content.
a. What according to you is wrong with
Snapchat?
b. What strategies can it undertake to
revive?
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