Product & Brand Management (EDL 322)-Semester III

Product & Brand Management (EDL 322)-Semester III

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1st Block Assessment

Case Study
The New Coke story in a nutshell- In 1985, Coca-Cola completely withdrew their flagship product from the market and replaced it with a “new” Coke in the US and some international markets. This product is often referred to as “New Coke”, but the intention of the packaging was to indicate that Coke was new. The product was developed and launched after years of R&D and taste testing and focus groups with consumers. The new flavor outperformed both traditional Coke and Pepsi in market research taste tests. Primarily due to media and consumer lobby group pressure, within 80 days Coke re- introduced “Coke Classic” and offered two Coke variations along with “new” Coke. Today they no longer offer “new” Coke in the US market. The “Traditional” Cola Marketing Environment In its early years, Pepsi positioned itself as a discounter and sold its product for half the price of Coke in a larger bottle. This positioning had some impact with budget-conscious households and helped Pepsi become the “at-home” drink, while Coke remained the social drink. To reinforce their perceived higher product quality, one of Coke’s slogans was “it’s the real thing”. However, within a few days of traditional Coke being withdrawn and replaced by “new” Coke, there was a backlash from consumers and the media and their brand image was damaged. Many consumers saw Coke as a cultural icon and were angry that it was no longer available. The Coca-Cola product was the traditional market leader in the cola category. They had achieved success through a strategy of outsourcing manufacturing and logistics to licensed bottlers, strong retailer relationships, and building a very strong brand. Because of this initial relative competitive position, Coke believed their product was superior and that they had an entitlement of being the market leader. Whereas Pepsi always saw themselves as the challenger and tended to be more aggressive in their marketing tactics as a result.
Question 1
Which aspect of product strategy for New Coke was wrong

Product Features

Product Quality

Brand Image

Packaging

Question 2
The launch of new coke in the US market is an exampe of

Line Extension

Brand Extension

Positioning strategy

None of these
Question 3
Even when in the blind test, the New coke was liked, it did not succeed due to

Wrong positioning

Brand Coke

Wrong pricing

All of these
Question 4
The various stages in Product Life Cycle are all except

Introduction

Maturity

Lateral development

Growth
Question 5
As part of new product development process, the new Coke was wrong at which stage

Testing the product

Commercialization

Business feasibility

None of these
Question 6
New Coke has been launched under which stage of the PLC

Introduction

Growth

Maturity

Decline
Question 7
The problem for new Coke also took place due to

Product related issues

Positioning issues

Pricing issues

Distribution issues
Question 8
The main difference between Coke Classic and New Coke

Taste

Positioning

Pricing

Brand Name
Question 9
The most important aspect in branding and product strategy is

Compatibility between brand and consumer mindset

New brand name and pricing

Reinventing the earlier brand

All of these
Question 10
With various brands, Coke handles competition from Pepsi through

Marketing strategy

Product Mix

Rebranding

None of these

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2nd Block Assessment
Case Study
In mid-1988, Nestle SA (Nestle), the world’s largest consumer packaged foods company based in Switzerland, acquired Rowntree Mackintosh PLC (Rowntree), in the largest ever acquisition deal of a British company during that time.Rowntree was the world’s fourth largest manufacturer of chocolates and confectionery products, with well-known brands like Kit Kat, After Eight, Smarties and Rolo.
In the end, Rowntree was acquired by Nestle for £2.5 billion, two and a half times the pre-bid price and eight times the net asset value of the company. This acquisition made Nestle the largest chocolate manufacturer in the world.
Analysts felt that Nestle had paid £2.5 billion because of Rowntree’s brands, not its past financial performance. Industry observers wondered how Nestle would manage Rowntree’s brands. In the mid-1860s, Henri Nestle (Henri), a merchant, chemist, and innovator experimented with various combinations of cow’s milk, wheat flour and sugar. The resulting product was meant to be a source of infant nutrition for mothers who were unable to breast-feed their children.
In 1867, his formula saved the life of a prematurely born infant. Later that year, production of the formula, named Farine Lactee Nestle, began in Vevey, and the Nestle Company was formed. Henri wanted to develop his own brands and decided to avoid the easier route of becoming a private label. He also wanted to make his company a global company. Within a few months of establishing his company, Henri began to sell his products in many European countries. In the initial years, Henri restructured the organization to facilitate research, improve product quality, and develop new products. In 1875, Daniel Peter, Henri’s friend and neighbor, developed milk chocolate. He soon became the world’s leading chocolate maker. Later, his company was acquired by Nestle. In 1905, Nestle merged with Anglo-Swiss Condensed Milk Company, a manufacturer of milk-based infant food.
During World War I, there was a huge demand for dairy products and Nestle capitalized on this opportunity by executing military contracts of various countries involved in the war.
In 1938, after eight years of research, Nestle discovered a soluble powder that revolutionized coffee drinking around the world. The product was launched under the brand name Nescafe and became an instant success. The end of the World War II marked the beginning of a new phase of growth for Nestle. The company added many new products. In its effort to expand its operations further, Nestle merged or acquired several companies. In 1947, Nestle expanded into culinary products by merging with Alimentana, a Swiss company that produced and sold Maggi soups, spices and other food products in many countries.
Rowntree followed a “one product, one brand” policy. The brands were simply Kit Kat, After Eight, Smarties and Rolo, Rowntree was never mentioned.
Question 1
The decision to acquire the other chocolate brands by Nestle is a

Operational decision

Strategic decision

Tactical decision

None of these
Question 2
“In Strategic brand management, the most critical step is”

Identifying the core brand promise

Knowing the competition

Developing new brand positioning

All of these
Question 3
The most important branding challenge in acquisition is

Monetary consideration

Cultural integration

Consumer Understanding

None of these
Question 4
Mapping of core brand competencies is very important in strategic brand management process because

Developing core competencies between the brand and consumer

For making the pricing decisions

For marketing and promotion

For distributing
Question 5
What is value of a brand

Brand Image

Mental evaluation by a consumer about the brand

Logo and tag line of the brand

All of these
Question 6
What would Nestle do in developing POD

Differentiate each brand

Measure the differences

Comparision with other brands on differences

All of these
Question 7
What is understood as POP in branding

Point of purchase

Plaster of Paris

POP stores

Points of parity
Question 8
The most critical challenge for modern day brand is

To create differentiation

To understand the consumer

To compete with new players

None of these
Question 9
The brand promise under strategic brand management process is

The key words the brand stand for

Its tag line

Its value for consumer

None of these
Question 10
Brand managers have to be careful in developing

Brand name

Brand logo

Brand positioning and differentiation

None of these

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3rd Block Assessment
Case Study
For the uninitiated, Superdry is a fashion label of SuperGroup plc, an international clothing company based out of Cheltenham, UK. Well, it didn’t start out that way but that’s what this case study is all about. It’s about ingenious branding that resurrected an almost non existent fashion line of outdoor wear – a transition from car boot sales to high street stores, from oblivion to ubiquity. The fact that Superdry has nothing to do with anything remotely Japanese is evident if you decipher the script. If loosely translated (there’s no literal translation from Japanese), it reads “maximum dry (do)”, which sounds absolutely nonsensical. James Holder, the brainchild of Superdry reminisces of his obsession with typography and his childhood spent reading Japanese manga comics (known for its Japanese script on the cover). Apparently, the logo was conceived at a Japanese pub by James with a play on English and Japanese typography to loosely convey the meaning of staying dry on a wet day using Superdry.
The branding genius lies in the logo seamlessly incorporating Japanese and English, and conveying something totally different to what it actually says! Some market experts believe it’s a parody on Japanese clothing brands that often use meaningless English mumbo-jumbo to appear British. Parody or not, SuperGroup ain’t complaining. The logo has elevated Superdry to the point it’s mentioned in the same breath as Uniqlo, Zara, AllSaints and Mango – labels that rub shoulders with Superdry.
SuperGroup hopes Idris’ mass appeal will help gain lost momentum both at home and the US, one of Superdry’s biggest markets. According to a report in The Guardian, Euan Sutherland, the chief executive believes “Superdry still appealed to 18-24 year old market, but many shoppers had grown up with the brand” and Elba, 42, would appeal to that older generation as well.” Further, he adds, “Idris Elba is a big man in the US and he will automatically reposition Superdry in people’s minds
It’s not the first time that Superdry is betting big on celebrity endorsement. It’s always thrived on celebrity endorsement. Now, though, SuperGroup’s taking it a notch further by launching an entire sub-brand that is Idris Elba. This strategy has worked in the past for many high street brands to plug plummeting sales. Will this work for SuperGroup? What do you think? Would love to hear your thoughts
Question 1
What are the main brand elements for a brand

Brand name

Brand Logo

URL

All of these
Question 2
What is the most important brand element for SuperDry

Brand Name

URL

Logo

None of these
Question 3
What is SuperDry brand personality

Sports brand

Fashion for men and women

An American brand

None of these
Question 4
What consists of the brand identity of the brand

It stands for American fashion

A British and Japanese fashion brand

It stands for young consumers fashion

None of these
Question 5
Brand personality consists of

Personality traits of a brand

Personification of the brand

Personal values of the brand

All of these
Question 6
Which brand identity dimension is most critical for Superdry

Elements

Brand Image

Personality

None of these
Question 7
The key brand image source for Superdry are

Brand positioning

Brand Loyalty

Brand Judgement

All of these
Question 8
Brand personality scale measures

Levels of personality

Various possibilities of personality of the brand

A scale to measure the success

None of these
Question 9
Brand image sources can be

Brand elements

Brand positioning

Brand Core Values

All of these
Question 10
Celebrity Endoresements can build a brand through

Brand loyalty

Brand visibility

Brand Image

Brand Judgement
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4th Block Assessment
Case Study
Brand Rejuvenation: With youth forming a major population of India, Dabur decided to revamp its brand identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements. New packaging and advertising campaign saw the sales of Chyawanprash grow by 8.5 per cent in 2003-04. Brand Logo: The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was replaced with a new, fresh Banyan tree.The logo was changed to a tree with a younger look. The leaves suggesting growth, energy and rejuvenation, twin colours reflecting perfect combination of stability and freshness, the trunk represented three people raising their hands in joy, the broad trunk symbolized stability, multiple branches were chosen to convey growth, and warmth and energy were displayed through the soft orange colour. ‘Celebrating Life’ was chosen as a new tag that completely summarized the whole essence. Dabur Chyawanprash Rejuvenation: Dabur Chyawanprash (DCP) is a heritage brand which came into existence in the year 1949. The brand is now ruling the market with a market share of around 60 – 70 %. The total Chyawanprash market is estimated to be around Rs 300 crore (AC Nielsen Retail Audit 2006-07). Chyawanprash is popular as a kid’s health tonic. Parents used to rely on this product for their kids especially if the kids are between the ages 6-16. Because the teens are usually hyperactive and less inclined to taking foods. Hence Chyawanprash offered a solution to the worried parents. The ayurvedic tag also alleviated worries of side-effects.
Question 1
Rebuilding the Brand again with different perspective is

Brand Repositioning

Brand Revitalization

Brand revival

None of these
Question 2
What brand problem Dabur was facing

Losing the brand image

Staleness of the brand positioning

Incompatibiity with consumer’s liking

All of these
Question 3
What was the logic behind using Amitabh Bachchan as celebrity

To create brand pull

To relate to multiple segments

Develop mass visibility

None of these
Question 4
The new brand logo was used for which kind of extension

Line extension

Product extension

Brand extension

None of these
Question 5
Having multiple products at various touch points leads to development of

Lines of products

Brand Portfolio

Product meaning

All of these
Question 6
Brand heritage of the brand has been

Celebrating life

Oldest brand in the country

Having multiple standing

None of these
Question 7
Changing the logo to a new tree indicates

Growth

Freshness

Rebirth

Change to something else
Question 8
Dabur’s new brand identity indicates

Revitalization

Repositioning

Extension

Revival
Question 9
Catering to multiple consumer segments lead to

Difficult brand image

Possibility to relate to all

Multiple brand image

None of these
Question 10
Co-branding can be done only when

Two or more brands are available

Compatibility beetween the brands

High level of competition

All of these
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5th Block Assessment

Case Study
The world constantly changes and disparities, however, some top brands seem to keep their leadership position in their industry to this day. Strong brands are amazingly durable and have the ultimate ability to overcome many challenges. Either does Nike. Since its creation in 1971 in the USA, the Nike swoosh is still one of the world’s most valuable brand despite of the severe crises. Ranked at 26 on the list of Interbrand’s “Best Global Brands” in 2009 with a brand value at $13.2 billion dollars, up 4% from a value of $12.7 billion last year, Nike is the best among sports brand, left the big competitors, Adidas and Puma far behind (Interbrand report, 2009)
Having and holding customers is likely to be a competitive battle which each brand tries all efforts to win. They compete for functional attributes, distinctive services or innovative technologies (Aaker, 1991).
Since Nike was set up by someone who has “a deep passion for athletics and running”, it should come no surprise that product is important. Products that are comfortable, “authentic, functionally innovative and uniquely designed” (Nike report, 1985). The innovative technology is considered as one of the defining dimensions of Nike’s brand identity and corporate culture.
The simple driving concept has led to some impressive innovations which is considered as one of the defining dimensions of Nike’s brand identity and corporate culture. The first highlight was Air cushioning, using pressurized gas to cushion impact and new materials such as Urathane, that was used first with the Air Max running shoes (Nike report, 1987). More recently, to obtain maximum performance, Nike Sport Research laboratory has discovered the innovative technology such as Shox, which are made mostly of rubber and “spring back adding more power to a runner’s stride” and Total 90 Concept, a range of equipment to help players perform over 90 minutes of a soccer match (Keller, 2008)
Associated brand with the top athletes, Nike tells story of brands which the main themes is “sportsmanship and unrelenting effort”. These are the story of Michael Jordan who won a record 10th scoring title and was selected as one of the 50 Greatest Players (NBA history, 2010) in American’s National basketball association championship. Lance Armstrong survived and won a second straight Tour de France while Tiger Woods completed the career Grand Slam, “ensuring his place in golf history at the age where most of us are still wondering what we will do when we grow up” (Nike report, 2000). The most three prominent athletes has generated the inspiration for young and next generation of athletes. Nike has succeeded to transfer their inspirations to every single purchaser. Wearing every pair of Nike shoes is to engage a passion for excellence and encourage to “do your own thing”. “Just do it” – the tagline could sum up all the greatest values of brand which is (Superbrands case study, 2002).
Products are no longer just products, they move beyond the functional meanings. Nowadays, they are definitely social tools “serving as a means of communication between the individual and his significant references” (Grubb and Grathwohl, 1967 as cited by Banister and Hogg, 2003). Products are considered as a symbol of individuality and uniqueness, and also symbol of affiliation and social identification. It is particularly trued with the fashion brands. Fashion brands such as clothes, bags, shoes and etc satisfy opposing functions, both social identification and distinction among individuals (Banister & Hogg, 2003)
Nike must have understood the recipe well. The “Just do It” campaign in the early 1990s would be a perfect example. Losing ground to archrival Reebok which was quick initiative on designing “style”, “fashion” aerobics shoes in 1980s (Keller, 2008), Nike responded dramatically and forcefully by launching the “Just do it” campaign which was mainly focused on person wearing on products instead of product itself.
“Purchasing an athlete-endorsed product is one means of symbolically and publicly demonstrating aspirations to be a part of the group and such behaviors are directly influenced by the extent to which a fan identifies with an athlete endorser”
“Just Do It” campaign succeeded (Nike increased its share of the domestic sport shoe business after launching this campaign in America from 18 percent to 43 percent, regained the leader position) because it could fascinate customers in both separating ways. Wearing Nike as a self fulfilling image declaration – “if you are hip, you are probably wearing Nike”. But perhaps most importantly, it could create the desirable needs -“if you want to be hip, wear Nike” (CFAR, 1998).
Symbolic meanings of Nike brand are also tracked in the research on “Symbolic and functional positioning of brands” of Bhat and Reddy (1998). This study showed that Nike scored high on the prestige and personality expression scales (See Appendix). The findings of Hogg et al (1998) also support the success of attached the symbolic and emblematic meanings to sportswear brands. The youth showed facility in interpreting the symbolic meanings attached to the sports brands which were associated with the different sports stars (such as footballers, rugby players, athletes and tennis players) and with different sports (e.g. football and rugby.)
Question 1
Brand Equity is made from the most critical feature on the top which is

Brand liking

Brand perception

Brand judgement

Brand Resonance
Question 2
Nike Brand has developed very strong brand loyalty due to

Good quality

High price

Functional and Symbolic relation

None of these
Question 3
Symbolic attachment of the brand can be develoepd through

Customer affection

Customer Engagement

Customer loyalty

None of these

Question 4
“Under the CBBE model, Nike is positioned at”

Brand Resonance

Brand preference

Brand Feelings

All of these
Question 5
Brand hierarchy consists of

Layers os hierachy

The structure of brand development

Levels of brand portfolio

None of these
Question 6
Brand Awareness can be built best through

Marketing

Enhancing functionality

Developing relationship with the brand

None of these
Question 7
Brand associations can be built on two platforms

Top and middle level

Multiple levels

For multiple segments

Primary and Secondary
Question 8
Brand Equity measurement systems consist of

Brand Tracking and measuring

Segmentation

Brand levels

All of these
Question 9
The basic difference between brand recall and recognition

Identification

Understanding the brand

Adoption and loyalty

None of these
Question 10
The main components of the Aaker model

Brand Identity

Brand Image

Brand Congruence

All of these
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Full syllabus Assessment
Case Study
Siddhartha took a number of initiatives to revive the fortunes of the brand. A new light weight engine made of Aluminum was developed to replace the Royal Enfield motorcycles’ old cast iron engines. New engines had higher fuel efficiency and longer life than the older engines. Royal Enfield took the help of an Austrian design firm called AVL to design the new engines. Changes were also made to make the motorcycles look contemporary. In order to improve the quality of motorcycles, the management made the quality standards for its component suppliers stringent. A new cruiser model called Thunderbird was introduced in the year 2002 to attract new younger customers. Enhanced quality and new models improved the sales by the year 2005. Within a short period of initiating quality enhancement measures, the warranty claims went down.
Question 1
What is brand revival

Repositioning the brand

Building upon the brand again

Changing the brand value

None of these
Question 2
What is most important to develop a brand

Customer compatibility

Marketing

Brand Efforts

All of these
Question 3
The most important factors in developing strong brand is

Advertising

Product Quality and Image

Customer Service

None of these
Question 4
A better brand experience can be developed through

Customer Engagement

Building long term usage

Selling at low price

None of these
Question 5
How brand can be made into long term strategy

Making it premium

Developing its sub brand

Undertaking Strategic brand management process

All of these
Question 6
Marketing Mix for brand is very critical as

helps the consumers identify and adopt

Developing marketing program

Develop loyalty

None of these
Question 7
Brand Equity can be explained as

Ownership of the brand in the market

Equity shares of the company

Equity of the brand in the competition

None of these
Question 8
Revival of the brand can be done by

Changing the marketing mix

Celebrity endorsement

Changing the core values

All of these
Question 9
Competition can impact a brand in which manner

Improve systems

Develop Differentiation

Teach marketing lessons

None of these
Question 10
Revitalization of a brand leads to

making the brand accessible

Developing new features

Building a new brand position and mantra

All of these
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Distribution & Logistics Management (EDL 321)-Semester 3

Distribution & Logistics Management (EDL 321)-Semester 3
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1st block assessment
Case Study
A dabbawala is a person, who is part of a delivery system that collects hot food in lunch boxes from the residences of workers in the late morning, delivers the lunches to the workplace utilizing various modes of transport, predominantly bicycles and the railway trains, and returns the empty boxes to the customer’s residence that afternoon. They are also made use of by prominent meal suppliers in Mumbai where they ferry ready, cooked meals from central kitchens to the customers and back.
It all started about 125 years back when this Parasi banker wanted to have home cooked food regularly in office and gave this responsibility to the first ever Dabbawala. Other people also liked the idea and the demand for Dabba delivery soared.It was all informal and individual effort in the beginning, but visionary Mahadeo Havaji Bachche saw the opportunity and started the lunch delivery service in its present team-delivery format with 100 Dabbawalas. In 1890 Bombay, Mahadeo Bhavaji Bachche started a lunch delivery service with about a hundred men. In 1930, he informally attempted to unionize the dabbawallas. Later, a charitable trust was registered in 1956 under the name of Nutan Mumbai Tiffin Box Suppliers Trust. The commercial arm of this trust was registered in 1968 as Mumbai Tiffin Box Supplier’s Association. And as the city grew, the demand for dabba delivery grew too. The current president of the association is Raghunath Medge. In 1998, Forbes Global magazine conducted an analysis and gave them a Six Sigma rating of efficiency.
The journey of Mumbai Dabbawalas has been a fascinating one, where they have proved their mettle over and over again. Every day, battling the traffic and crowds of Mumbai city, the Dabbawalas, also known as Tiffinwallahs, unfailingly delivered thousands of dabbas to hungry people and later returned the empty dabbas to where they came from. The Dabbawalas delivered either home-cooked meals from clients’ homes or lunches ordered for a monthly fee, from women who cook at their homes according to the clients’ specifications. The Dabbawalas’ service was used by both working people and school children. In 1998, Forbes Global magazine, conducted a quality assurance study on the Dabbawalas’ operations and gave it a Six Sigma efficiency rating of 99.999999; the Dabbawalas made one error in six million transactions. That put them on the list of Six Sigma rated companies, along with multinationals like Motorola and GE. Achieving this rating and that too without the use of any technology or paperwork, and that most of them were illiterate or semiliterate is indeed has been a herculean task. Apart from Forbes, the Dabbawalas have aroused the interest of many other international organizations, media and academia. It has very well survived the threats from todays business environment but has manage to survive through and that too has done it very well.
A collecting dabbawala, usually on bicycle, collects dabbas either from a worker’s home or from the dabba makers. As many of the carriers are of limited literacy, the dabbas (boxes) have some sort of distinguishing mark on them, such as a colour or group of symbols. Lunch boxes are usually marked in several ways: (1) abbreviations for collection points, (2) colour code for starting station, (3) number for destination station and (4) markings for handling dabbawala at destination, building and floor. The dabbawala then takes them to a designated sorting place, where he and other collecting dabbawalas sort the lunch boxes into groups. The grouped boxes are put in the coaches of trains, with markings to identify the destination of the box. The markings include the railway station to unload the boxes and the destination building delivery address. At each station, boxes are handed over to a local dabbawala, who delivers them. The empty boxes are collected after lunch or the next day and sent back to the respective houses. Dabbawallas tend to belong to the Varkari sect of Maharashtra and consider Tukaram’s teachings of helping each other to be central to their efficiency and motivation. The service is almost always uninterrupted, even on the days of severe weather such as monsoons. Since 1890, when the dabbawalas formally came into existence, none of them had ever gone on strike until 2011 when the members decided to head towards Azad Maidan to support Anna Hazare in his campaign against corruption. Each dabbawala, regardless of role, is paid around 8,000 rupees per month (about US$131 in 2014). Between 175,000 and 200,000 lunch boxes are moved each day by 4,500 to 5,000 dabbawalas, all with an extremely small nominal fee and with utmost punctuality.
Question 1
Founder of Dabbawala system

Parsi Banker

Mahadu Havaji bacche

Dhondiba Medge

Marathi banker

Flag this Question
Question 2
Dabba system started—————years ago

120

130

135

125

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Question 3
Sis sigma perfformance is

95.99

99.99

97.99

98.99

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Question 4
Technological back of Dabawala

to some extent

nil

full backup

as and when desired

Flag this Question
Question 5
Food is delivered from

home to office

home to home

mess to office

home or mess to office

Flag this Question
Question 6
Lunch boxes are usually marked in several ways:

“only abbreviations for collection points, and colour code for starting station, ”

only number for destination station

“markings for handling dabbawala at destination, building and floor”

all are correct

Flag this Question
Question 7
Tukaram s teachings matra was

God is one

believe in God

helping each other

believe in humanity

Flag this Question
Question 8
Dabbawallas tend to belong to the ——————sect of Maharashtra

Varkari

valmiki

varkai

none of the above

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Question 9
Dabba system is highly ..

unbaised

efficient

sufficient

none of the above

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Question 10
Means of transport is mainly ..

train and bicycle

car

bus

none of the above

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2nd Block Assessment
Case Study
Distribution systems may evolve over time as a business grows and changes. Consider a small one-store family restaurant named Alice’s, with delicious, unique, homemade salad dressings (e.g., Pomegranate Vinaigrette, Rum-Raisin-Orange Ranch, Blue Cheese Catalina). Initially, the dressings were only available to customers eating at Alice’s. Then customers begin requesting bottles to buy. Initial sales and distribution of Alice’s Salad Dressings were from the restaurant to walk-in customers. The product was packaged in a 32-ounce canning jar with a handmade label.
New distribution channels cause packaging and pricing changes. Then Alice’s Dressings were sold to a local grocery store at a discounted wholesale price, 28 percent less per ounce than the retail restaurant price, packaged in a smaller, 26-ounce bottle. As local demand grew, Alice decided to have the dressings made in an independent packing facility and sold to other stores in the area, which initially raised the cost of making the dressings. Alice’s husband, brothers, and a sister-in-law divided up initial sales responsibilities to call on local and regional stores in their spare time.
The popularity of Alice’s Dressings caused Alice to consider the possibility of selling large pallet quantities to distributors in other states. The distributors needed another 25 percent discount from wholesale price, along with free shipping. Sales brokers were also recommended, at 5 percent commission on net distributor sales, since the family could no longer call on everyone. A separate company would have to be set up to market the salad dressings; an enterprise requiring full-time management
Distribution channels are key to pricing and packaging decisions. In this case, a separate business, new distribution channels and sales representation grew out of Alice’s initial one-store restaurant. Alice’s restaurant was initially able to sell the salad dressings at $5.00 per 32-ounce jar (15.6 cents per ounce) directly to customers. However, once a decision was made to sell Alice’s Dressings as a shelf-stable item in grocery stores, the bottles changed to a standard 26-ounce size to compete with other dressings sold in this size.
Alice was concerned that grocery consumers, unfamiliar with the restaurant, would not pay over $3.99 retail per 26-ounce bottle when competing brands ranged from $1.29 to $2.69 for the same 26-ounce size. Wholesale prices were 28 percent less than retail, at $2.89 per bottle. However, the cost of ingredients was substantially more than competing brands, at $1.00 per bottle, and packaging and processing costs added another $0.50 per bottle. Profits were reduced from restaurant sales per bottle, but still acceptable (i.e., from $3.50 a bottle, or 11 cents per ounce, to $1.39 per bottle, or five cents per ounce), since the total amount of sales and profits were expected to be substantially greater through grocery sales.
Further research with marketing experts in the industry and sales brokers indicated a further 40 percent reduction in delivered distributor price (including brokerage commissions and shipping costs). Alice would net $1.73 per bottle at delivered distributor price with brokerage commissions of 5 percent, leaving an unacceptable gross margin of only 23 cents per bottle (13 percent), even at the higher retail price of $3.99 per bottle.
Alice finally decided to upgrade the bottle and label to a unique, tall, triangular, Italian glass bottle and cork, with gold and black labels and recipe hang-tags by a local design studio. She sold the dressings directly to upscale specialty and grocery stores. Distributors would not be used. Specialty brokers were hired to aid in selling directly, at a 10 percent commission on net sales. The premium pricing was also retained in this non-elastic, low-price- sensitivity market segment, with the new bottles retailing at $4.99 each. Final net factory sales per bottle were $2.69 after deducting 10 percent brokerage commissions, with net factory profits of $1.10/bottle. Specialty food stores took a 40 percent gross margin, but paid for shipping.
Packaging and pricing decisions are intimately related to distribution and sales force decisions: Alice’s restaurant could have made several different distribution decisions, with different packaging and pricing results:
Sell the salad dressings only from the restaurant in 32-ounce jars with handmade black and white labels at $5.00 each. This distribution and sales decision requires the least amount of extra resources, spending, and risk. This also provides the smallest potential sales return.
Sell the dressings directly to all consumers through mail order or other marketing channels with family members handling both marketing and sales. This distribution and sales decision is a variation on selling only from the restaurant and may require additional resources to manage and grow, but it delivers better returns than selling only to local restaurant customers.
Sell through DSD (Direct Store Delivery) distributors. This distribution and sales decision requires financial resources, management time, personnel, higher margins, and spending support, but may be the fastest way to grow the business.
Hire brokers for store and/or distributor sales. This sales decision depends upon scope of operations and geographic and distribution channel expansion plans.
Combine several distribution channels simultaneously. This distribution and sales decision calls for the largest amount of resources, time and personnel, with the objective of growing the business as fast as possible.
License the formulas and restaurant name to another manufacturer and receive a 4 percent to 5 percent royalty on net sales. This distribution and sales decision is also low-risk, with low-resource requirements. The long-term potential return is much higher than selling out of a single restaurant.
Sell a different size bottle or jar directly to stores only, as Alice finally decided to do. This distribution and sales decision preserves higher gross margins and eliminates discounts to distributors and possibly sales commissions to brokers, but requires more financing, management personnel and time.
Question 1
” Pricing interacts with a supply chain in many ways. For instance, transportation rate structures are adjusted by the carrier based on:”

cost to unload

the size of the shipment

local currency rates

the logistics costs concept
Question 2
The total logistics cost factors need to be balanced against the:

supply chain managers total experience

total expected transportation needs

customer service factors

lead time expectations
Question 3
The benefits of marketing channels are__

Cost saving

Time saving

Financial support given

All of above
Question 4
“___ were hired to aid in selling directly, at a 10 percent commission on net sales by Alice”

Middle man

Specialty brokers

adviser

local boys
Question 5
what distribution approach(es) would you use if you Alice s was your company

Wholesaler

Sole selling agent

Direct marketing channel

Semi-wholesalers
Question 6
What is the full form of CIS

Channel information system

Channel induced system

Channel informal system

Channel incorporated system
Question 7
“The work of setting up objectives for selling activities, determining and scheduling the steps necessary to achieve these objectives is known as .and should be used by Alice”

Selling

Sales policy

Sales programme

Sales planning
Question 8
The difference between transactional selling and relationship selling is

“In transaction, selling buyers must pay cash relationship selling, sellers work to provide value to their customers”

“In transaction selling, sellers provide greater service ”

“In relationship selling, buyers and sellers must be related”

“In relationship selling, sellers work to provide value to their customers”
Question 9
________________ is a marketing channel that has no intermediary levels proposed by alice

direct marketing channel

indirect marketing channel

forward channel

hybrid channel
Question 10
” A distribution channel moves goods and services from producers to consumers. It overcomes the major time, place, and ______________ gaps that separate goods and services from those who would use them.”

possession

profit

image

psychological

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3rd Block assessment
Case Study
Shri Om Logistics was started by Mr Mukesh Chatwal in 1989 and has grown from a one truck operation to a 150 tractor-trailer fleet serving shippers in western zone of India. Company serves the automotive industry by providing inbound transportation to the assembly plants. It has strategic alliance relationship with three large automakers and is the exclusive trucking company for a number of auto suppliers. Mr Mukesh Chatwal is willing to adopt new equipment technology, computer systems, and management techniques. As he was about to call strategic planning meeting with his top executives, he was mulling over recent trends in the logistics field. He also knew that to retain current enviable position in market, he must continue to be innovative and provide the services customers need. During recent past three years, he has witnessed increased competition. The other logistics companies that provide rush deliveries have made significant inroads in the market where just-in-time management system mandate minimal raw material inventories, guaranteed deliveries and vendor penalties for late deliveries.
The perplexing trend to Mr Chatwal is the growing vertical integration of trucking companies into other logistics services. A number of other companies have started warehousing divisions to provide sorting, kitting( putting pieces together to make up a kit), and cross-docking (moving freight across a dock to a waiting truck). Other carriers are adding third party logistics divisions to manage a shipper/receiver’s transportation and storage activities. Finally a few trucking companies have started air carrier divisions, freight forwarding services and logistics information services. He also recognizes that this vertical integration of trucking companies is a result of customer demands. In addition, shippers are reducing number of vendors in transportation suppliers, being used and asking the few vendors to provide a wider range of products and value added services.
After considerable thought, his decides that only viable long term strategy for Shri Om Logistics is to become a full service logistics provider. If current status of company is continued , it will greatly impair the growth and profit potentials of the company. The only question remaining for Mr Chatwal is what other logistics services are appropriate for the company in long run?
Question 1
“To retain current enviable position in market, he must continue to be”

quality assurance

stratigic decision

innovative and provide the services customers need.

none of the above

Flag this Question
Question 2
A company’s channel decisions directly affect every ________.

marketing decision

customer’s choices

employee in the channel

competitor’s actions

Flag this Question
Question 3
logistics companies that provide rush deliveries have made significant inroads in the market because of

JIT

kanban

cycle time

none of the above

Flag this Question
Question 4
Intermediaries play an important role in matching ________.

dealer with customer

information and promotion

supply and demand

product to region

Flag this Question
Question 5
warehousing divisions was provide

“sorting, ”

kitting

cross-docking

all of the above

Flag this Question
Question 6
“A channel consisting of one or more independent producers, wholesalers or retailers that are seeking to maximize their own profits even at the expense of profits for the channel as a whole is a ________.”

administered vertical marketing system

conventional distribution channel

vertical marketing system

vertical distribution structure

Flag this Question
Question 7
An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.

time-saving part

decisional role

disciplinary role

specialized role

Flag this Question
Question 8
Mr Chatwal was thnking to improve company profitability by introducing

other logistics services appropriate for the company in long run

other logistics services appropriate for the company in short rrun

inbound logictic

outbound logistic

Flag this Question
Question 9
“From the economic system’s point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.”

manufacturers

consumers

marketers

distributors

Flag this Question
Question 10
Do you agree that logical strategic thrust for Mr Chatwal is to

horizontal integrate and provide other logistics services

horizontal integrate

vertically integrate and provide other logistics services

none of the above

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4th Block Assessment
Case Study
In the store house of a steel plant, the material is received through railways and by road. There are 30,000 moving items. On an average, 20 trucks of loads are received every day in the receiving store house of the central stores department. In the central stores department, the materials are received centrally. The receiving house is divided into 6 bays named Monday, Tuesday, Wednesday, Thursday, Friday and Saturday. There are 50 stores personnel to receive the consignments and to unload them in respective bays.
After unloading the materials, a store collection report is prepared by a store man. He also records the details of the receipts, commercial invoices and related purchase orders in the ‘Day Book’. A stores receipts voucher is prepared having the details of the materials received including nomenclature/ description of the materials, catalogue number and quantity received, challan/commercial invoice number, railway receipts/consignment note number and other important information. SRV is handed over to the inspection unit for checking the quality (physical/chemical) to ensure that the material has been received as per purchase order terms. If the material is found correct, the same is handed over the respective custody storehouse meant for storing different types of material before issue. The custody storekeeper checks the material as per SRV and keeps in the marked bin.
The SRV is signed by the custody storekeeper and handed over to receiving storekeeper. There are six copies of this voucher for the following:
Purchase department
Receiving storehouse
The indentor of the material
Accounts department
The supplier
These copies are distributed to the above-mentioned. The supplier submits the bill along with the SRV to the accounts department of the company for the payment.
It is taking average 15 days to take the material into charge form the date of receipt to the material. Sometimes, the material is lying in the receiving bay but due to ignorance the indentor is making emergency purchase’. The supplier is getting his payment against the supplies in average of 30-days.
The management wants to reduce the time for taking materials into charge from 15-days to 3-days, eliminate emergency purchases’ and also reduce the payment time of the supplier to average of 3-days.
Question 1
“Store man records the details of the receipts, commercial invoices and related purchase orders in the .”

register

Day book

cash book

note book
Question 2
“A stores………………………….. is prepared having the details of the materials received including nomenclature/ description of the materials, catalogue number and quantity received, challan/commercial invoice number, railway receipts/consignment note number and other important informatio”

cash voucher

bill

receipts voucher

payment voucher
Question 3
The market logistic decision concept originated in ____________.

Marketing

Operations

Logistics

Production
Question 4
Market logistic decision requires following prerequisites ____________.

“Order processing, warehousing, inventory and transportation”

Flow of goods

Buying and selling

Purchasing of raw materials
Question 5
The purpose of logistic decision is ____________.

Provide customer satisfaction

Improving quality of a product

Integrating supply and demand management

Increasing production
Question 6
SVR record describes

Supply value record

Service record

transpotation record

sale voucher
Question 7
Retailing operation which is operated and owned by manufacturer and carries surplus orirregular goods is classified as ____________.

Warehouse

Factory club

Factory outlets

Wholesaler those take titles of marketing offering independentl
Question 8
The management wants to reduce the time for taking materials into charge

“from 10-days to 3-days,”

“from 11-days to 3-days,”

“from 15-days to 3-days,”

“from 9-days to 3-days,”
Question 9
The management wants to reduce the payment time of the supplier to average of

3-days.

2-days.

1-days.

5-days.

Question 10
Companies manage their supply chains through _____________.

Transportation modes

The internet

Competitors

Information

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5th Block Assessment
Case Study
Tasty – Food Products established in 1980, distributes a 100 item product line of canned vegetables, fruits, condiments and specialty items (such as pappads, fruit jams and pickles) to wholesalers in several states of South India.
Tasty – Food Products introduced a new customer-order policy to improve its service to its wholesalers and also the effectiveness of its sales representatives.
Two important features of this program are:
Sales people are free from the work of order taking, and
Orders received from wholesalers on a predetermined schedule.
The company’s sales representatives are no longer to process customer orders. Earlier practice was to accumulate wholesale orders until they had enough volume to make up a truck load and then send the orders to the head office. Under the new program, wholesalers are to e-mail their orders directly to the head office as per a fixed schedule (say once in a month or so). If the wholesalers miss their fixed date they have to wait for the next fixed date as per schedule.
These procedures are designed to increase the number of sales calls the sales people could make to their customers. The assumption is that sales people would spend more time determining the sales patterns and the effect of sales promotions if they are relieved of the task of order taking and transmitting the consolidated orders to head office. By this, each sales person could do more of a sales job rather than the order taking job.
But, unfortunately many wholesalers failed to follow a predetermined order schedule. They were not used to the system where some one would have to tell them when to order. Some wholesalers complain against fixed schedules and lack of flexibility. Others were so much dependent on sales persons to determine what their requirements are and felt that the new program meant more work for them.
If the orders do not reach the head office according to the schedule, the wholesalers has to wait for two weeks to place the next order. If a wholesaler misses a fixed scheduled date for ordering, he would run the risk of having a stock out which would cause a loss of 20-30 percent of sales of tasty-food’s product. But due to this only tasty-food products company suffered because the wholesalers and retailers carried several product lines of competitors and when Tasty-Food’s brands were out-of-stock, they sold other brands.
Tasty-Food Products has no integrated logistics department to deal with its distribution activities. In the past, three salespersons were made responsible for arranging transportation. When they accumulated orders worth rupees 3 lacks (nearly a truck load) they would send the orders to the head office of shipment. To expedite shipment for wholesalers who have urgent need, a sales person in one area would try to combine his orders with another sales person of the adjoining area to meet the requirement of a full truck load. However, in the new practice, the head office would ship according to a fixed schedule and arrange the shipment with the wholesalers even if the order totaled to less than rupees 3 lacks.
Question 1
“Tasty – Food Products established in 1980, distributes a —————-item product line ”

200

150

100

110

Flag this Question
Question 2
As per company new policy sales people are free from the work of

order delivery

loading

unloading

order taking

Flag this Question
Question 3
A ______________ is a set of interdependent organizations involved in the process of making a product or service available for use of consumption by the consumer or business user.

retailer

wholesaler

distribution channel

middleman

Flag this Question
Question 4
How can an organisation reduce its market uncertainty?

By offering more products and services.

By reducing the number of products and services it offers.

By broadening its view of what marketing channels can and should do for it.

By forming dyadic relationships with intermediaries.

Flag this Question
Question 5
____ involves the acts by which channel entities obtain products and services.

Procurement

Requisition

Solicitation

Acquisition

Flag this Question
Question 6
Tasty-Food Products has no ..department to deal with its distribution activities.

Fianance

operation

integrated logistics

HR

Flag this Question
Question 7
The new system introduce by Tastey-Food was————————-

inefficient

efficient

none

sufficient

Flag this Question
Question 8
“Through their contacts, experience, specialization, and scale of operation, ______________ usually offer the firm more than it can achieve on its own.”

manufacturers

producers

direct marketers

intermediaries

Flag this Question
Question 9
Independent firms at different channel levels integrate their programs on a contractual basisto achieve systemic economies and increased market impact are known as .

Corporate vertical marketing systems

Contractual vertical marketing systems

Administered vertical

None of the above

Flag this Question
Question 10
What is the full form of VMS?

Velocity moving system

Vertical marketing system

Vertical moving system

Very moveable system
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Full syllabus Assessment
Case Study
“Your Choice” Fashion Apparel company is a very successful merchandiser of contemporary fashion apparel for both men and women. The company publishes a high quality product catalog and sends it to prospective customers, who then place orders by mail or by telephone calls. The customer base consists mostly of young couples with two incomes and no children. These customers receive catalogs from competitor fashion apparel companies as well.
The catalog business a highly competitive and growing. It has become an alternative means of shopping for people who are just too busy to shop in retail stores.
The company has developed an Internet based capability, “Your choice.com” that provides full catalog and ordering services for “on line” customers. The company’s website offers a new and effective way to interact with customers.
“Your choice” Fashion Apparels is regarded as the company that offers the best product assortment, product quality and customer service. Two critical customer service elements at “Your Choice” are that (i) the company receives, packs and ships orders in a timely manner, and (ii) the product returns procedures are customer friendly. But the company’s product return practice is expensive and the top management is highly concerned about this.
“Your Choice does not produce any of the merchandise it sells. It contracts with manufacturers in India, Korea, Taiwan, China and Singapore to meet its largely seasonal product line needs. The company ships container loads of labeled and pretagged merchandise by intermodal transportation services to a centralized distribution centre in Dallas, Texas, subsequent movements to individual customers are made by UPS and Federal Express.
“Your Choice” executives consider themselves to be in “logistics business”. They consider that the company’s logistical capabilities are a key to its excellent reputation in the market place. However, managers at “Your Choice” are worried that customer tastes and company product preferences are beginning to change very quickly, sometimes in the middle of a selling season. Only a continued ability to react quickly to changing market place needs will distinguish market leaders from others.
Question 1
Transporting and storing goods is part of which of the following marketing channel functions?

negotiation

physical distribution

contact

matching
Question 2
The benefits of marketing channels are ..

Cost saving

Time saving

Financial support given

All of above
Question 3
“With respect to a channel of distribution, the number of intermediary levels within the channel indicates the ____________ of a channel.”

width

depth

length

similarity
Question 4
Your Choice does not produce any of the ——————————–it sells.

merchandise

customer

choice

ready to eat
Question 5
“””Your Choice executives consider themselves to be in ..”

real state

banking

logistics business

e-commerce
Question 6
Only a ..to changing market place needs will distinguish market leaders from others

strategy

lower price

just in time

continued ability to react quickly
Question 7
Your choice.com is a company that provides

full catalog and ordering services

delivery services

ready to make

assembelling
Question 8
Your Choice company have only ———————- customer

off line

walk in

physically present

online
Question 9
Which is not a strategic role of sales management?

Tracking

Reporting

Delivery

Optimizes distribution
Question 10
Many firms use environmental scanning to assess their external environment. Environmentalscanning should be used to

Identify future threats and opportunities

Determine personnel performance

Allocate financial resources

Assist with service delivery

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Consumer Behaviors (EDL 320)-Semester III

Consumer Behaviors (EDL 320)-Semester III
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1st Block Assessment

Case Study
Segmentation has been vital to the success of NIVEA Sun and allowed the brand portfolio to grow to over 40 products, all meeting clear consumer needs. The following factors are used to develop and define the sun care segments: Demographics – different groups of consumers behave differently (factors relate to age, gender, etc). Demographic differences relevant to NIVEA Sun include different buying behaviours between men/women and adults with children. There is a stark contrast between awareness and usage of sun care products between men (who prefer convenience) and women (who enjoy more luxurious sun care products). Similarly, adults with children are another broad segment with differing needs. Demographic segments are broad. As research shows, the level of awareness of sun care transcends income and social class. Concerned Consumers ‘a good tan is not important’. These consumers are conscious of the harmful effects of the sun and purchase sun protection products that are most likely to offer high sun protection factors Attitudinal this is the most important segmentation variable. Consumers’ attitudes towards sun care influences their purchases. NIVEA Sun conducts market research to understand user attitudes. This involves questionnaires using a nationally representative sample, and more intensive research with small groups, to discuss individual skin protection habits and preferences. This has identified 5 distinct groups for protection and after sun: 1. Sun Avoiders – avoid sunbathing and using sun protection when in the sun – it is seen as a chore. These are unlikely to purchase a sun care product. Through education, this segment may be convinced to protect using more easy-to apply products such as sprays. 2. Careless Tanners – adore the sun but don’t protect against harmful dangers. Tanning is important to this group, not protection. They don’t worry about the long-term damage to their skin and may purchase a low SPF product, if any at all. 3. Naive Beauty Conscious – like to have a good sun tan. They recognise that sun protection is important but fail to understand about Sun Protection Factors (SPFs). These consumers may still be interested in the core features of a sun protection product (e.g. SPF) and be more inclined to purchase an added-value offering such as a mousse.
Question 1. Segmentation is the process of dividing_____into various segments
Target Audience
Population
Consumers
Buyers

Question 2. Consumer behaviour for products is related to

Using of goods and services

Disposing of goods

Buying and paying for goods

All of these

Question 3. Demographic segmentation consists of the following except
Family
Income
Motivation
Marital Status

Question 4. Beauty products can be segmented best through
Demographic segmentation
geographical Segmentation
Psychological segmentation
Socio-Cultural

Question 5. Research on beauty products can be undertaken by which method in the best possible manner
Survey method
Indepth Interview
Focus Group Discussion
Observation

Question 6. What is the most critical benefit of using multi segmentation
Profits
Revenue
Large base of consumers
Better utilization of resources

Question 7. Consumer buying behaviour is impacted most by which environmental factor
Political
Socio-Cultural
Economic
None of the above

Question 8. The best theory to understand lifestyle segmentation is
VALS model
Black Box model
Howard Sheth model
All of the above

Question 9. The most widely used method of consumer profile by marketers is
Behavioural
Psychographic
Hybrid Profiling
None of the above

Question 10. The most important behavioral aspect of buying beauty products involve
Frequency
usage
uses
Quality

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2nd Block Assessment
Case Study
The latest snowstorm kept me an extra night in Toronto, but it did give me the chance to pass on this interesting case study. In his presentation at a Canadian Advertising Research forum on Wednesday morning, Dhan Kashyap, strategy director at Diageo Canada Inc., explained how a new positioning had boosted sales growth for Baileys. What was interesting to me was that the repositioning encouraged consumers to reassess what the brand stood for.
Baileys is a strong, differentiated brand in Canada that has been supported over time with effective above-the-line advertising. Positioned for years as a brand to accompany intimate moments and special occasions, Baileys has never relied on promotions or price discounting. But after two years of robust sales increases, the year 2005 brought a rapid deceleration in the brand’s sales growth.
Diageo considered various strategies for boosting the brand’s sales momentum. Increasing penetration was not really an option, since, to use Diageo’s consumer loyalty terminology, over 50 percent of target consumers were already “Adorers” or “Adopters.” It was not that people did not like the brand; they simply did not drink it very often.
The obvious strategy was to try to extend usage to more frequent occasions, but people who were conditioned to think of Baileys as an indulgence for special occasions would not feel comfortable ordering Baileys in an impersonal setting like a crowded and noisy bar. The brand was boxed in by its existing positioning. Yet repositioning the brand as one being suitable for casual social occasions would put it into direct competition with many other spirits brands.
The question became, how far could the positioning of Baileys be stretched toward more public usage occasions without undermining the strong bond it had forged with consumers through its associations with special occasions?
Whatever the brand did, consumers would need to reconsider what the brand stood for. Challenging goals were set for changing brand attitudes, including decreasing the perception that Baileys was for special occasions, and improving claimed past 4 week usage. Aggressive goals were also set for the TV advertising. The agency brief called for breakthrough copy that would achieve an Awareness Index of 9 or higher in Millward Brown’s Link pretest (well above the Canadian norm). As Dhan stated later, in order to achieve significant changes in entrenched attitudes and behavior, compelling creative is a must. You need breakthrough copy and cannot settle for something that is merely average.

Question 1. The most important aspect of comsumer perception about the brand is
Consumer Imagery
Subliminal Perception
Just Noticiable difference
None of these

Question 2. Comsumer Imagery is a combination of
Advertising and branding
Consumer’s mindset
Competitor’s marketing
All of the above

Question 3. Subliminal perception about the brand is based on
Marketing elements
Celebrity endorsements
Latent and subconcious cues
None of the above
Question 4. Repositioning of the brand impacted the perception in which direction
Positive
Negative
Neutral
None of these

Question 5. Perceptual barriers can be broken through
Advertising
Branding
Repositioning
All of these
30 out of 50
Question 6. Percption of consumer products is highly based on
Product performance
Advertising only
Word of mouth
Branding

Question 7. Perceptual blocks about an FMCG product can be based on
Service being offered
Biase and usage
Competitor’s positioning
None of these
Question 8. Perception is also a function of the following except
Earlier experience
Marketing elements
Positioning
Internal Motivation

Question 9. Perception impact attitude formation through the following
Developing judgement
Improving marketing performance
Converting into purchase
None of these

Question 10. Threshold perception is formulated for the brand through
Just Notiable Difference
Moving beyond judgement
Subconscious mindset
All of these

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3rd Block Assessment
Case Study
Like it or not, banking is moving online in a big way. But as the number of online banking customers grows, so too do the security risks, particularly for high-value commercial banking transactions which make a tempting target for cybercriminals.
HSBC, the global banking group, wants to encourage more commercial customers to use internet banking. But it has long recognised that the security measures used on its personal banking website – a combination of PIN and challenge phrase – were insufficient for business accounts.
To allay widespread fears about internet security among its personal banking customers, HSBC promises to refund the amount of any unauthorised transaction conducted online.
But for commercial customers, the value of transactions can be quite high – HSBC’s UK commercial customers have a £100,000 daily transaction limit – and the risk to the bank is consequently much greater.
To reduce the risk, HSBC recognised it needed a way to better authenticate its commercial users.
“Most banks just re-badge their personal internet banking offering for commercial customers but we recognised that businesses need greater functionality and also better security,” says Trevor Oney, Senior Manager, HSBC’s senior manager for e-commercial banking in the UK.
In 2002, HSBC began to use digital certificates to authenticate its UK commercial banking customers.
“It was spectacularly successful and the fraud levels we got using digital certificates were truly minuscule,” says Mr Oney.
Nevertheless, the use of digital certificates created support headaches for the bank. As the certificate – a small piece of software code – is installed on a specific PC, the customer must always use the same computer to access their bank account.
In addition, certificates periodically expire, obliging customers to download new ones. Sometimes, the certificate was deleted by accident – when a new operating system was installed, for example.
According to Mr Oney, these issues led HSBC to look at a less “intimidating” way to protect its commercial banking customers.
Security experts have long argued that the best way to prove that people really are who they claim to be is using “two factor” strong authentication and this is the approach HSBC chose. With two-factor authentication, the user can only access the site if they successfully pass two separate challenges: one based on something they know, such as a PIN or mother’s maiden name; and the other based on something they own.
In the case of the HSBC, the object of desire is a small electronic device called a “token” which generates a fresh password each time a button is pressed.
The tokens are supplied by Vasco, a Belgium-based company specialised in authentication technologies. Tokens have been used for security applications for some time– one common application is to authenticate remote users trying to access a corporate intranet –but most deployments to date have been limited in scale.
Nevertheless, for HSBC’s internet banking initiative, the bank ultimately wants to distribute the devices to all its commercial banking customers that have registered to use online banking. That is around 400,000 users or half the total number of business customers that HSBC has in the UK.
The high penetration rates might surprise those critics who once argued that internet banking would never be as popular as branch-based banking.
Question 1. Communication model for consumers comprise of 4 stages namely
AIDS
AIDA
AIDP
None of these
Question 2. Online Technology and Social Media communication provide all the information except
Personal Service
Real time information
Intellectual Capital
Quick response time

Question 3. The A in the communication model stands for
Attention
Awareness
Attitude
All of these
Question 4. Online communication for marketing used by HSBC will comprise under which marketing method
Sales promotion
Digital marketing
Marketing Mix
None of the above
Question 5. Internet banking and communication for HSBC impact which aspect of consumer behaviour
Information
Attitude formation
Perception
Buying
Question 6. Communication about services leads to which stage of consumer buying process
Information Search
Evaluation of Alternatives
Post Purchase evaluation
None of the above
Question 7. Online way of banking is faced with the problem of
Adoption by consumers
Communication of benefits
Developing an Attitude
All of these
Question 8. Communication leads to development of the following except
Attitude
Perception
Learning
Buying decision
Question 9. Communication barriers in consumer buying behaviour are caused due to
Culture
Language
Incongruency between communication and consumer
Mode of communication
Question 10. The message and media strategy for communication would be based on
Consumer Psychology
Orientation of the company
Mode of communication available
Goals of the company

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4th Block Assessment
Case Study
The Golden Circle theory provides evidence of how most companies communicate in an uninspiring manner. Most companies typically communicate by stating what they do, how a company is different or better, and the expectation from the company of a behavior, such as a purchase. The Golden Circle theory focuses on the following elements: Why as a central focus in the inner circle, The How is the next outer circle, The What is the outermost circle. The why is the cause, purpose, or belief of the organization, according to Sinek, very few companies know why they are in business. Sinek cites Apple’s former CEO Steve Jobs vision of design and simplicity guiding how Apple does things and what they produce. “Everything we do, we believe in challenging the status quo. We believe in thinking differently. The way we challenge the status quo is by making our products beautifully designed, simple to use and user-friendly. We just happen to make great computers. Want to buy one?”. Apple’s method of communicating provides consumers’ with trust, confidence, and a set of shared beliefs inspiring people to make a purchase from the company. The how refers to the actions a company takes to bring the beliefs into reality. The what are the resulting actions, such as the services, products, culture, marketing, and employees. As a result of its marketing communication strategies, consumers have confidence they are purchasing a quality product whether, it is a Mac, iPhone, iPad, iPod or iTunes software. The shared beliefs between Apple and consumer’s along with positive product and service experiences are critical in establishing the brand in the mind of the consumer.
Question 1. The most imprtant impact that group has on purchase

Influence decision
Developing the reference group
Impacting the choice
Motivating the person

Question 2. Reference group for Apple comprise of
Loyalists
First time Apple users
Value Seekers
None of these

Question 3. How will group impact Apple products purchase
Developing the status image
Developing the relation
Influence each purchase criteria
All of these

Question 4. The Golden Circle at Apple has helped in changing consumer behaviour
Developing the intention to buy
Attitude formation and perception
Usage rate
Brand loyalty

Question 5. Culture impact purchase of phones through
Impacting behaviour
Changing values
Impacting the judgement of the product
None of these

Question 6. Social status seeking is a function of
Group behaviour
Individual judgement formation
Developig brand loyalty
All of these

Question 7. Cross cultural consumers of Apple buy Apple products
Global consumer have common values
Differences lead to different buying motives
A global brand image
None of these

Question 8. Group Dynamics for Apple products is based on
Closeness to the brand
Social status attached to the brand
Word of mouth
New products launch

Question 9. Group influence buying of Apple products through
Developing a social status
Reference impact
Motivation given by others
All of these

Question 10. A very important aspect of culture is
Commonality
beliefs and values
Similar thinking
None of these

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5th Block Assessment
Case Study
An increased awareness of consumer behavior is essential for business and environmental reasons. The more the consumers are aware of environmental measures, less are the chances of environmental degradation. The Key issue to address consumers awareness towards “Electronic rickshaws” (E-rickshaws) as an environmental friendly drive. Again the study focuses on adoption behavior of consumer to e-rickshaws over traditional fuel driven auto-rickshaws. For this, exploratory study research design has been used through literature review and survey method is used to measure the level of awareness and adoption behavior of consumer towards e-rickshaws. The results indicate that most of the consumer are aware of environmental reasons behind the introduction of e-rickshaws and are ready to adopt in their daily means of transportation. The present study comes with certain loopholes for e-rickshaws and suggests ground for improvement. So, it will be helpful for suppliers of e-rickshaws to modify their models as per demand of consumers.
Question 1 Consumer Adoption relates to
Buying
Consideration of purchase
Disposing of products
None of these
Question 2. Innovation diffusion of E-rickshaw is mostly dependent on
Environmental factors
Marketing factors
Consumer acceptability
Efficiency of vehicles
Question 3. Introduction and Awareness about the new service should have
Innovation Quality
Uniqueness in service
Compatibility with consumer
None of these

Question 4. The stages of consumer adoption comprise of
Awareness
Trial
Desire
All of these
Question 5. Opinion leadership would influence diffusing the innovation through
Influencing the customer
Taking decision
Motivating and forming positive attitude
None of these

Question 6. The basis of innovation diffusion are
Complexity
Triability
Communicability
All of these
Question 7. E-rickshaw can develop customer loyalty through
Impacting consumer mindset
Making it affordable
Marketing it well
None of these
Question 8. E-rickshaw would be adopted quickly through
Observablility
Triability
Innovation
All of these
Question 9. How can E-rickshaw spread through opinion leadership
Developing loyalty
Innovation Diffusion
Easy Accesability
Impulse purchase
Question 10. Diffusion process can be improved for innovation through
Increasing in communicability
Improve customer satisfaction
Building awareness
None of these

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Full syllabus Assessment
Case Study
Burger King failed to attract nutrition-conscious diners through Satisfries, a lower-calorie, healthier version of its French fries, with the result that the company withdrew the product from two-thirds of its restaurants. The failure of Satisfries was a major blow to the global fast food giant which was struggling to provide better dining experiences to customers by serving healthy fast food at its restaurants. Burger King introduced the lower-calorie fries with the objective of attracting more health-conscious consumers and boosting its health-friendly image among the fast food giants in the world. But critics questioned its claim about offering fewer calories and a heathier fast food option than its rivals. The product also failed to satisfy consumers who were not clear about the advantages of Satisfries compared to the company’s regular fries. Moreover, its overpricing, weak brand positioning, bad marketing decision, wrong social media advertisements, and lack of product differentiation among others, resulted in the failure of Satisfries.

Question 1. Consumer buying behaviour is impacted by various factors
Marketig elements
Word of mouth
Group Behaviour
All of these
Question 2. Positioning in the consumer mind is based upon
Marketing methods
Image about the product
Other people’s influence
None of these
Question 3. Developing a different product and concept leads to
Innovation diffusion
Competitor’s marketing
New marketing elements
None of these
Question 4. Offering a health product by a fast food company lead to
Adoption by consumer
Confused positioning and offer
right marketing mix
All of these
Question 5. Eating and drinking choices by consumers are highly impacted by
Demographical issues
Geographical concerns
Cultural issues
None of these
Question 6. Perception can be built about a new product offering by
Marketing Mix
Positioning methods
Overall image and imagery
All of these
Question 7. The most important step in consumer decision process is
Information Search
Trial
Evaluation of Alternatives
None of these
Question 8. The new product would be accepted based on
Observability
Compatibility
Complexity
None of these
Question 9. A clear advantage of product over existing one can be developed through
Comparison
Repositioning
Unique features
Acceptance by consumers
Question 10. The failure of Satisfiers can be attributed to
Over pricing
Wrong positioning
Bad marketing
All of these

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