Abstract:
During late 1990's, Asian Paints India Ltd faced growth constraints due to a slowdown in the economy
and stagnation in the paint market. This prompted the company to explore various avenues to expand
and increase its sales volumes. The caselet examines in detail about the Asian Paints service offering:
Asian Paints Home Solutions. The caselet also describes the challenges that the company faced in
marketing the service and how it overcame those challenges to make the service successful.
Issues:
»
»
New
Diversification of
product
»
»
Segmentation
Design
target
of
and
service
companies
into
development.
services sector.
marketing in service
the
service
industry.
offering.
Introduction
Asian Paints India Ltd (Asian Paints) is India's leading paint company
and one of the world's largest. It has a wide product range, catering to
the decorative and industrial paint segments.
Asian Paints recorded revenue of Rs 15.95 bn, with a net profit of Rs 1.42 bn in 2003-2004. Nearly
90% of the revenues came from the decorative paints segment in which it is a market leader. Asian
Paints' market share was 46% in the organized paint market and 26% in the overall decorative paint
market.
During late 1990's, the company faced growth constraints due to a slowdown in the economy and
stagnation in the paint market. This prompted the company to explore various avenues to expand and
increase
Questions
its
sales
for
volumes...
Discussion:
1. Analyze the design of the service offering in the light of its appeal to the target customer segment.
2. Evaluate the Asian Paints selection of target segment SEC A and B group customers in terms of
growth potential and structural attractiveness.
CASE :2- PEPSI
With a new century in full swing it is time to think of a new direction for PepsiCo in terms of
marketing. The CSD (Carbonated Soft Drink) industry has stalled in recent years and it is time to
focus our marketing dollars on other items. Therefore, I have four important ideas that will push
PepsiCo to a new level in promoting our products. Here are the four strategies that will help us gain
market share.
1)
Design a non-CSD to target the baby-boomer generation that will help them maintain strong
bones and remain active.
The baby boomer generation is beginning to hit a critical stage in their lives and we need to
accommodate their needs. Baby boomers make up 39% of Americans over the age of 18 and they
account for 29% of the total population. Baby boomers also have $2 Trillion in annual spending power.
They have the ability to purchase a quality non-CSD that will keep them healthy and we are willing to
offer them this. Abbott Laboratories is the current leader in pediatric, adult, and healthy living
nutritional products. This includes Ensure Brand Products, which pioneered the market for adult
nutritionals. We will look into how they have successfully marketed this type of non-CSD.
2)
Offer our ready-to-drink beverages to schools in place of CSD's.
There is growing concern in the public that vending machines in schools offer only junk food and
sodas. A recent study by CSPI (Center for Science in the Public Interest) found that 70% of the drinks
sugary drinks. With our juices, bottled water, and Gatorade drinks we can present a better alternative
for the youth of America.
3)
Design new packages to appeal to the different markets.
Package design has been an important and constantly evolving phenomeno ...
CASE: 3:
Easyjet
Why is easyJet successful?
Four key criteria are used to evaluate easyJet's strategic marketing success.Strong Financial
PerformanceShareholder value is ultimately driven by bottom-line financial success, which at easyJet
has been fuelled by capacity expansion, cost control and tapping in to highly price sensitive segments
of the market.Rapid Sales growth ? Between 1998 and 2003 revenues grew by a factor of twelve and
profits grew by a factor of almost nine.
Cash management - With the mindset of an aggressive start-up, easyJet has not paid a dividend to
date, preferring to retain profits to fund future expansion. In 2003, the company had enough cash
reserves to fund a complete year of operations.
Exponential Market Share Growth
A key metric in the air transport sector for measuring market share is number of passengers carried.
This is despite the fightback by traditional airlines over the last two years, which has seen several
adopt a low-cost operational model or launch their own low-cost airlines. Outstanding Resource
UtilisationAirline efficiencies are commonly measured using the metrics in table 3. easyJet has the
highest load factor and keeps its aircraft flying longer than its main no-frills competitor. Relative
staffing efficiencies are also significantly better than those of its main traditional competitor, British
Airways.
Creation of Strong Brand AwarenessIn a market populated by heavily branded traditional airlines,
easyJet recognises the importance of establishing a brand that sets it apart from competitors.An
omnibus survey in January 2004 found that easyJet's brand awareness was 85% in the UK. In
addition, easyJet was ranked as the fifth most popular search term ...
CASE:4
Google Case Study
1.
? What were the key factors behind Google's early success?
? Do you expect the search business to become more concentrated (i.e.: dominated by fewer
firms)?
? Is search a winner-take-all business?
? In renewing its deal with AOL, could Google afford to pay AOL more than 100% of the revenue
generated from AOL searches?
? How did Microsoft's maximum affordable bid for AOL's search traffic compare to Google's?
In addition to enhancing its core search business, should Google also branch out into new arenas?
Which of the follow would you recommend:
? Building a full-fledged portal like Yahoo's;
? Targeting Microsoft's desktop hegemony; and / or
? Becoming an e-commerce intermediary like eBay?
Presentation of the company
(The domain name for Google
was registered on September 15, 1997, and
the company was incorporated on September 4, 1998. It was based in the garage of a
friend (Susan Wojcicki) in Menlo Park, California. Craig Silverstein, a fellow PhD student
at Stanford, was hired as the first employee.
Google began as a research project in January 1996 by Larry Page and Sergey Brin, two Ph.D.
students at Stanford University, California. They hypothesized that a search engine that analyzed the
relationships between websites would produce better results than existing techniques, which ranked
results according to the number of times the search term appeared on a page. Their search engine
was originally nicknamed "BackRub" because the system checked back links to estimate a site's
importance. A small search engine called Rankdex was already exploring a similar strategy. Convinced
that the pages with the most links to them from other highly relevant web pages must be the most
relevant pages associated with the search, Page and Brin tested their thesis as part of their studies,
and laid the foundation for their search ...