Monday, 3 April 2017

Analyze the possible threats for a differentiating marketing strategy



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Marketing Management


Case Studies
CASE STUDY (20Marks)
Neither China nor the Chinese companies can be any more ignored at any international business discussion. An officiated reason is Lenovo’s acquisition of IBM’s PC division that has revved up brand China. After that, Lenovo is busy building its own brand at the
global level. This top PCmaker in China has served its home turf so well with its unique business model, dubbed the ‘Transactional Model’. It is quite upbeat that the strategy will pay off globally too catapulting it to the top spot. However, skeptics have their reasons; mainly that its top3 rivals HP, Dell and Acer wouldn’t let Lenovo topple them. The case study helps debate if Lenovo’s ‘Transactional Model’ is suitable for other countries also, and if this model helps it combat global giants operating at a bigger scale.
The case also helps discuss loopholes in Lenovo’s model and how to fill them up.

Answer the following question.
Q1. Describe the significance of brand building in such an industry
Q2. Devise the ways by which companies can overcome their legacy costs, when going global.

CASE STUDY (20Marks)
CocaCola Company was universally recognized as a market leader in soft drinks with worldwide revenue of $23.1 billion and presence in over 200 countries (2006). The Company manufactured beverage concentrates and syrups. The CocaCola Company owned four of the world’s top five softdrink brands, which included CocaCola,nDiet Coke, Fanta and Sprite. In America, sales of carbonated drinks declined a little in 2005 as government campaigns and media coverage raised concerns over obesity. Bottled teas and nutritionenhancers were big opportunities for CocaCola. Sales of bottled teas were growing steadily and nutrient drinks had a market of about $1 billion by 2006. According to a study conducted by the National Center for Health Statistics, Americans opted for a healthy alternative to their daily dose of energy instead of carbonated drinks. The study prompted CocaCola to go in for the calorie burning Enviga. On 6th November, 2006, CocaCola along with Nestlé launched Enviga, a Nestea carbonated canned greentea drink. Enviga burnt 60 to 100 calories per three 12ounce cans in healthy adults aged between 1835 years. For overweight Americans, the release of Enviga was meant to bring good news. According to CocaCola, Enviga helped in reducing obesity. But
 according to doctors green tea was unlikely to make anyone shrink, so the Center for Science in the Public Interest, an organization that focuses on health and nutrition issues in US sued CocaCola and Nestle for their ad campaign of Enviga but the company had no plans to change its claims. In the recent past CocaCola had already faced two softdrink flops out of their four releases in the form of CocaCola C2 and Vanilla Coke. What would CocaCola' strategy be with the new drink? Would it be able to make it a success despite the initial controversy that surrounded it? Would consumers take to Enviga?

Answer the following question.
Q1. Discuss the trouble faced by CocaCola in 2005.
Q2. Debate CocaCola’s marketing strategies for Enviga and discuss whether ColcaCola
will succeed in its new product.


CASE STUDY (20 Marks)
The Johns Hopkins Medicine, (JHM) was the governing body for one of America’s best academic medical center and health care delivery system. The Johns Hopkins Hospital, under JHM was ranked the ‘Best Hospital’ for 15 consecutive years (as of 2005) in
the US News and World Report’s Best Hospitals Rankings. The Johns Hopkins University, also under the JHM, was America’s first research university. Scientists working with the organization included Nobel Laureates and its research was known for many a pioneering medical breakthrough. In late 2004, JHM launched an advertising campaign to boost the JHM profile and canvass for philanthropic funds to construct two new stateoftheart patient care facilities. This was a new experience for JHM, which had not aggressively promoted its brand, publicly, so far. However, with a number of academic institutions resorting to regular marketing methods to promote themselves, the JHM management felt that their brand and its USP had not been fully exploited. Also, being an academic hospital, JHM had to rely on donors for developmental activity and hence building a strong brand was crucial. JHM wondered how best its brand could be exploited in its promotional and fundraising efforts. They also had to be cautious of criticism from experts who observed that academic medical centers should refrain from regular advertising and promotional. This case allows for students to discuss how a brand should be built in the hospital sector and how its USP should be built into the brand, to create maximum brand awareness.

Answer the following question.
Q1. Discuss how a brand should be built in the hospital sector
Q2. Explain in detail the promotional strategies to be formulated for the service sector.

CASE STUDY (20 Marks)
"Segmenting, targeting and positioning" (STP) formed the base for marketing strategies of any firm. Global organizations used to segment the market either continent wise or according to the economic development (i.e. developed, developing and under developed). But in alcohol industry, that might not be the proper criteria, as climate and tradition played an important role in consumer preference. The industry was subdivided into three major categories: beer, wine and spirit; and every market had their unique characteristics. As branded beer sales accounted for around 76 percent of total branded alcohol sales, the global players were primarily concentrated in marketing beer products. Eight out of the top nine global alcohol companies were primarily breweries. The only exception was Diageo, which was the leader in the global spirit market, and had presence in all three categories throughout the world. Thus, Diageo's global business strategies were quite different from the others. Diageo had followed a unique STP strategy so as to succeed in such complicated and competitive environment. Diageo's geographic segmentation was quite different from the usual continent wise segmentation. Diageo intended to have complete category participation, rather than solely focusing on individual brands within categories. Accordingly, Diego's marketing and investment strategies also differed in different geographical segments.

Answer the following question.
Q1. Give the trends and structure of global Alcoholic Industry in detail.
Q2. Explain the concept of "Segmenting, Targeting and Positioning" (STP) with respect to alcoholic beverage industry.
Q3. Analyze the possible threats for a differentiating marketing strategy



Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224



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