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Assignment Applicable for April 2018 Examination
Marketing Strategy
1. Today the Indian
youth is driven by Social Media. It has started playing a very important and
decisive role in their lives. How can traditional brands like Hamdard use it to
their advantage in order to target the youth with its new offering of flavoured
Roohafza in Tetra packs?
2. After a string of
not so successful launches, Tata Motors plans to launch Tata Nexon in the
Indian Market. It does not want to take any chances this time and has hired you
as a consultant to study the internal and external market environment?
3. Read the Case
Study Below and answer the questions
Coca-Cola and Pepsi
have been losing share to local rivals, including Parle, Dabur and ITC, in the
aerated-beverages segment even as the global soft-drink giants introduced more
fruit-based and healthier products to reduce their reliance on sugary sodas. In
the overall juices, nectars and still drinks, the share of Coca-Cola’s largest
fruit-based brand Maaza declined 230 basis points to 33.1%, while Pepsi’s Slice
fell 4.3 basis points to 9.6% during the year to September, according to
officials quoting data from Nielsen. At the same time, Parle Agro’s Frooti
gained 170 bps to 15.7%, while Dabur’s share rose 60 bps to 9.8%. New entrant
ITC’s B Natural and ethnic drinks maker Paper Boat — both marginal players —
have gained slightly in the period, the numbers reveal. Coca-Cola’s Minute Maid
brand, too, gained 50 basis points (bps) with a share of 2.30%, while Pepsi’s
Tropicana lost 50 basis points to 5%. With a large segment of Indian consumers
shifting to non-cola carbonates from regular cola drinks, most beverage
companies, including Coke and Pepsi, are trying to grab a bigger share of the
changing market. A Coca-Cola spokesperson said that Maaza maintained its
absolute leadership in the mango segment with the highest share. “The mango
salience may have reduced marginally in the said period but within the mango
segment, Maaza maintained its leadership position, with the same market share.
The shift in salience in non mango has been captured ahead of competition by
Minute Maid, which is growing at the healthiest rate in the segment,” the
spokesperson added. Deepika Warrier, vice president — Nutrition category,
PepsiCo India, said that the company “redefined our play in juice… (That)
reduced our investments on commoditized, low-margin segments, including
low-juice content segments. We have also consciously reduced play in channels
such as organized trade and in select geographies, in the mango-based juice
segment, while continuing to participate in the fast growing .`20 segment with
our Tropicana Slice 250 ml pack.” Coke and PepsiCo’s local rivals, however,
said that their rising share should not cause any surprise, for they better
understood Indian consumer preferences. “Our understanding of the Indian palate
and preferences has helped us stay ahead of the curve,” Dabur marketing head
(juices and beverages) Mayank Kumar said. Also, ITC has announced new launches
within B Natural, especially with region specific fruits, while Parle Agro
transformed its go-to market strategy two years ago, increasing its
infrastructure efficiency by over 40% and doubling distribution points.
“Consumers are graduating from synthetic-based products and now want those with
natural content. While we have been extremely aggressive with our overall
disruptive marketing strategy, we have also worked on building an extremely
advanced GTM strategy that increased our infrastructure,” said Nadia Chauhan,
joint managing director at Parle Agro. Globally, shifting consumer tastes are
prompting beverages giants to find ways to diversify away from traditional soda
and high-calorie juices.
a. Being a Market
Leader what strategy should Coca-Cola apply in this scenario?
b. Being a Niche
Player what strategy should be applied by ITC for its brand B Natural?
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