Brand Management

Case Based Assignment (2019-20)

Guidelines for Submission

 The assignment may be submitted in group of 2. Not more than 2 students are permissible
in one group, although if the student desires he may submit individually. The groups may
be inter-sectional as well.

 The Group can CHOOSE one case from the 7 cases given and submit a detailed analysis
and solution to the same. The solution should be checked on Turnitin for plagiarism before
submission of hard copy to PMC. On the front page of the assignment NAME OF CASE
has to be mentioned.

 The solution should not be more than FIVE (5), A-4 sheets both sides written. Solution
has to be based on information provided in case. NO other current information beyond
course should be used for arriving at a solution.

 Kindly refer to RUBRICS for Case evaluation as given in Course Outline to better
understand the Evaluation Criteria.

 Any strange similarity of answers between two groups, any instance of copying will invite
a penalty of ZERO marks to the groups involved. No clarification in this reference will be
seeked or entertained.

 Last Date of submission of assignment is 18th December, 2019, No request for the
extension of submission date will be considered under any circumstances. The candidates
who fail to submit the assignment within the deadline will be awarded ZERO marks.
 Case : 1 , Black Out: Green In

"Love might not have been invented in India but it was certainly perfected here," wrote Gregory
David Roberts in Shantaram. One may write the same about our tea-drinking too. The British may
have introduced tea in India, but drinking it became a competitive sport on our watch, with the
copious quantities consumed daily. So much so, that the action for tea brands is gradually shifting
to newer brews.

Tea is among the world's most widely consumed beverages. One of the biggest markets for tea is
the United States where Americans drink 3.6 billion gallons annually Tea is globally one of the
most popular and cheapest beverages with major production centers in India, China, Kenya, Sri
Lanka, Turkey & Vietnam.

The tea industry is one of the oldest organized industries in India with a large network of tea
producers, retailers, distributors, auctioneers, exporters and packers. Total tea production in the
world has exceeded 4 billion kgs with India producing about 1 billion kg of tea. Tea is one product
which is universally present in Indian households irrespective of rich or poor, nuclear, joint or
single family. The day of most Indians begins with a cup of tea. Tea isn’t simply tea in India but
it is like a staple beverage here and a day without it is impossible and incomplete. Indians prefer
their steaming cup of tea because for them it acts as an energy booster and is simply indispensable.
This popular beverage has a lot of health benefits too as its antioxidants help to eliminate toxins
and free radicals from the blood.

India is the second largest producer of tea in the world and contributes to around 30% of the global
tea production. The market size of tea is estimated to be approx.10, 000 Crore with a penetration
of more than 90% in the domestic market.

In India, tea is consumed in two forms: packaged (branded) or loose. While a major share of the
market is of loose tea suppliers, branded tea manufacturers are also fast increasing their market
share. The demand for packet tea is driven by rising consumer incomes, quality of tea and product
diversification with flavored tea production.

CTC (cut, twist and curl) tea is the major contributor in the tea market (80%) segment but with the
increasing consciousness on the health issues, green tea sales are picking up.

Black tea is predominantly produced and exported by Kenya and Sri Lanka. Green tea is mainly
grown and consumed in China.

Different Types of Tea

All the tea that we drink comes from the Camellia Sinensis plant, or the tea plant. Although one
would come across different varieties of tea in the world the three main varieties are the India tea,
the China tea and the hybrid tea. It is from these that the different types of tea like the green tea,
the black tea, the white tea, the herbal tea and oolong tea are prepared.

Green Tea: When tea leaves are picked, they generally whither and dry and when this occurs,
oxidization takes place. When green tea is manufactured, it is not allowed to oxidize. The leaves
are dried very quickly either in a pan or an oven to dehydrate them and then they are stored. This
process retains the polyphenols catechins and the flavanoids which make drinking green tea a
healthy and beneficial option. However green tea possesses a grassy taste and it loses its flavor
within a year.

Some of the benefits of green tea are its antioxidant properties which aids in preventing cancer,
raising metabolism rate and cutting fat and even reducing the probability of heart diseases. Due to
its short brewing time, green tea is stimulating.

Black Tea: This tea is stronger than any other type of tea. The caffeine content is higher in black
tea as compared to the less oxidized varieties. It retains its flavor for many years. Black tea is the
tea that enjoys the maximum sales in the world.

White Tea: This is the rarest variety of tea. The leaves are picked and harvested before they are
fully open and the buds still have a covering of white hairs on them. White tea undergoes the least
processing and is also not fermented. It has a light and sweet flavor and contains less caffeine and
more antioxidants than any other type of tea.

Herbal Tea: Tisane or ptisan is an herbal infusion. Tisane is made with any part of the plant either
dried or fresh flowers, roots, seeds or leaves over which boiling water is poured. There are different
types of herbal tea which can be consumed for medicinal purposes.

Oolong Tea: Being of Chinese origin, this tea is a cross between the popular black and healthy
green varieties and the two styles commonly associated with this tea are green and amber.

Tea market in India: Some characteristics highlighted:

Indian Tea Market can be divided into 2 segments the packaged one and the loose one. The market
has more than 300 brands although the market is dominated by HUL and Tata tea who have
presence along all pack and price points and have a total market share of 40%. The other players
are Duncan’s, Eveready, Goodricke, Wagh Bakri, Mohini etc. Tata tea Agni drives the economy
segment, HUL has other brands like Taj Mahal, Red Label, Taaza, A1 and 3 roses. The packaged
tea segment is very price competitive.

The tea bag consumption in India is in tune of 7000 tons/annum and growing at 20%. Most of the
companies have tea in all pack sizes 2 kg, 1 kg, 500 gm, 250 gms, 100 gm and 50 gm. There are
also sachets which are prices as low as 1 INR. 250 gm is the most preferred size. Branded tea
penetration city wise is as follows:

Tea: Global Market:

The global market is highly concentrated. The worldwide production and share of countries is as
follows:

World Tea Production and Share of Countries

d Tea Productionllion Kg)

2009 2010 2011 2012 % Share

(
Changing Preferences & Changing Market Dynamics:

As lifestyle preferences of Indian consumers are changing rapidly, the demand for premium
products in the market has increased. The green tea market in India which is estimated as an
approximately Rs 150 crore market and has been growing upwards 50 per cent year-on-year.
Indians are majorly black tea drinkers. Green tea has been an acquired cultural habit that has come
along with the urban India's urge to stay fit. Seeing potential in the segment, big FMCG giants like
Hindustan Unilever, Tata Global Beverages, Twinings and other brands have either launched new
variants or re-launched their green tea product range. The green tea market has witnessed lot of
action in terms of flavors and celebrities as brand ambassadors. The competition is expected to
become more intense in times to come.

Tata Global Beverages, for instance has upped the ante in the green tea segment by appointing
Bollywood actress Kareena Kapoor to endorse its Tetley range and take the product to Tier II and
Tier III markets. On the other hand, Hindustan Unilever (HUL) has used both Lipton and Taj
Mahal to take on rivals Tetley and Twinings, especially in green tea. Bollywood actress Anushka
Sharma endorses Lipton Green Tea. The prices of green tea is higher as compared to Black Tea,
and is majority of sale is contributed from tea bags.

Value Added Variants of Tea – Tea in value added formats and new exciting variant will increase
its appeal as well as consumption. Promoting more flavors like fruits and herbal tea into tea like
ginger, lemon, elaichee, etc. This will add up a new arena into tea industry.

Health & Wellness – Consumers are becoming increasingly conscious about health issues and it
has been playing a determining role in the choice of food products. With the passage of time and
excellent marketing techniques, consumers are now better aware of the health benefits of flavoured
and green tea.

Emerging Consumer Demands – Drinking habits and lifestyles have changed in the last 15-20
years and people are now willing to pay more for quality tea. However increasing consumer
attention to the quality of products, growing brand loyalty and active promotions by manufacturers
reflect a shift from unbranded to the branded products. A positive sign is that with rising demand
from consumers, tea exports are likely to increase. Green tea, unlike normal tea is not a family
drink and is largely consumed by male members or few members only because of its health benefit
and hence tea bags are more popular for this segment.

While green tea is not a brand new segment, it is one that has tea majors, Tata Global
Beverages (Tata) with Tetley and Hindustan Unilever (HUL) with Lipton and Taj Mahal, rooting
for us to go green. In the process, they have beaten the erstwhile leader, London-based Twinings,
and are going neck and neck with each other. The steady rise in competition indicates the segment's
significance.

Tetley Tea, sold across 40 countries, comes in six flavours in its green tea portfolio including
ginger, mint, lemon, honey and lemon, citrus and spice and aloe vera. The company enjoys a
market share of 35-40 per cent.

Arun N. Singh, managing director and chief executive of tea major Goodricke Group, said green
tea consumption in the country is growing by more than 10 percent a year.
"Green tea will have a slow organic growth in India. High consumption growth of it will take time
as it is related to change in tradition," Singh said.

Sangeeta Kichlu, vice president of Jay Shree Tea and Industries, a B.K. Birla Group company,
said although retailers were beginning to stock green tea, its supply was not currently matching
demands. She said there was a lack of marketing for green tea in the country as tea producers were
not sure about how to market it.
"I think there is a future for green tea in India. What is lacking is marketing strategy. Darjeeling
green tea market is yet to be cultivated."

According to Indian Tea Association (ITA) Secretary General Manojit Dasgupta, more and more
brands are adding green tea in their portfolio as its domestic market has shown evidence of growth.

Dasgupta said people were not replacing black tea with green tea, but adding the latter in their food
habit as an additional choice, driven by health considerations. "Urban, educated, health conscious
and economically strong consumers are experimenting as green tea is more natural as it is drunk
without milk and sugar. It is also light and delicately coloured...it means goodness, wellness and
health," he averred.

Nutritionists said health-conscious tea drinkers are adding green tea in their diet as it is full of
antioxidants which can reduce the risk of cancer and help in weight loss.
"People have started to add green tea as a part of their healthy diet as it is high in antioxidants
which reduces risk of cancer and also helps combat obesity by increasing the metabolism rate,"
said Hena Nafis, a nutritionist.

High metabolism rate increases boiling of calories, helping over-weight people lose fat.

With retail margins that can be 50 per cent more than that of black tea, according to Technopak
consultants, the stir in the green tea market is hardly a surprise

Market share of Green Tea

The variants make distribution a key cog in the green tea wheel. "Unlike black tea, where
preferences are well-entrenched, with green tea the consumer is still experimenting. At the point
of sale, she wants to check the entire product range before making her choice. We, therefore, have
to ensure the availability of the entire range," says Grover of Tata.
A vital piece in green tea's growth is the demand for tea bags, which is still nascent in the country.
Unlike loose, crushed black tea, green tea is mostly consumed in the form of tea bags. But the
largest buyers of tea bags - institutional clients - are yet to be tapped in a big way. "Airlines and
railways are possibly the largest consumers of tea bags.

However, the other segment comprising institutional clients - hotels, restaurants and cafes - holds
more promise for green tea brands. Tata has the advantage of access to its in-house hotels businesss
(the Taj Group), airline-catering operations (TajSATS) and even a cafe chain in the joint-venture
with US-based Starbucks. HUL could look inwards to its own chain of coffee shops, BRU World
Cafes, albeit not on the same scale as Tata.

Create a plan for successful launch of a new GREEN TEA Brand in Indian Market. The plan
should cover important aspect which will affect the branding decision of the firm.

CASE STUDY :2, Gone Nuts for Coconuts

“Consumers want function, flavor and simplicity. This has been the ongoing trend since
carbonated beverages peaked a few years ago and we’re still seeing it. Consumers want to know
a beverage is good for them and to see the positive results of that goodness. Flavor is personal, of
course.”

The above statement perfectly captures the paradigm shift in the mindset of customers worldwide
and the driving force when they are selecting their food products. Beverage industry has been
witnessing this trend in India as well since last one decade or so when the customers started shifting
their preference from carbonated drinks to fruit juices and other healthier options. The trend started
by Real in early 90’s has got hold of almost all the major Multinational Corporations working in
India leading to introduction of many global brands like Tropicana Twister and Minute Maid to
tickle Indian taste buds. Indian market has always been interesting, profitable and puzzling for
marketers. India is a land marked with many rich traditions and its diverse culture, and there exists
tremendous opportunities and trends which may be successfully leveraged for marketplace
success.

The reason for decline of carbonated drinks can at least partially be attributed to growing fears
over the healthiness of certain juices. The backlash against the carbonated beverages industry may
prove to be a warning to juice companies that consumers are becoming more aware of the amount
of sugar that a beverage contains. With record levels of obesity and diabetes prevalent in society
(something also widely reported in the mass media), it is little wonder that consumers are looking
to moderate or eradicate the consumption of products which are deemed too sugary.

The West, at not its Best in Beverage Market: The following table briefly captures the beverage
market sentiments of US market:

The table clearly indicates that after moving away from carbonated drinks, the picture is not too
rosy for the juice makers as well, the consumer preference is shifting towards 100% fruit juice and
vegetable juices. In their pursuit for growth the marketers keep on exploring new avenues and
opportunities for growth. One such stride was launch of coconut water in US markets. The size of
the coconut water category itself is estimated at between $60m and $72m, with this figure expected
to comfortably surpass $100m within three years. It is therefore the case that coconut water is still
very small in relation to the overall size of the juice market, but it is the rapid rate of growth which
is generating considerable buzz in the industry, including among the core stakeholders.
The popularity of coconut juice is largely attributed to the immense health benefits associated with
same. The various health benefits associated may be summarized as under:

In some markets of the world, Coconut water brands are integral to a beverage company portfolio.
They are positioned on health platform, on taste, unique flavors etc. In many cases it has been
positioned as a health supplement for athletes and sportsperson, As a professional puts it,
“Although not considered primarily a sports nutrition product (certainly not compared to isotonic
drinks), the benefits of coconut water closely align with that of a product designed for athletes. In
particular, it is said to effectively rehydrate the consumer, making it suitable for post-exercise
consumption. In recent times, industry players have attempted to shift the perception of coconut
water as a suitable product for all sportsmen and sportswomen”

In June 2010, US tennis player John Isner contested the longest ever tennis match at Wimbledon,
breaking several world records and earning plaudits for his endurance. After the match, Isner told
the LA Times: “Coconut water helps me rehydrate really well. Years past, I'd have issues with
cramping. But ever since I've started drinking it the night before, I've nipped that problem in the
bud.” The products are also becoming increasingly popular in the NFL (American football) and
NBA (basketball), both of which have an extremely high viewership in the US.
The juice has been dubbed a natural sports drink by some, as it is said to aid energy levels, being
high in both potassium and electrolytes.

Apart from the health benefits and celebrity endorsements coconut water market has witnessed
many innovations in terms of flavor and other interesting propositions. For example in US market
Bacardi launched Bacardi Rock Coconut and claiming it to be “the first coconut rum infused with
rock melon and coconut water”. In France Nestle launched 50% coconut water in one of their
functional drink with following variants:

a) Equilibre (Balance): targeting young adults, containing lemon and Vitamin C

b) Protect: targeting seniors, containing zinc, pomegranate and selenium
c) Vitalise: targeting children, containing vitamin D and milk.

Some brands came up with their organic offering, while some started offering coconut water with
added minerals, vitamins, anti aging benefits etc. A snapshot of major US players in coconut
market is as follows:
Vita Coco happens to be the market leader in US with a market share of 60% , it has also launched
flavored coconut water in US market as well with pineapple, lemon, and orange as few popular
flavors in its kitty. It is the first coconut water brand sold at US airports and in-flight.

Considering the enormous growth potential Pepsico and Coca Cola have also invested in this
markets through O.N.E and ZICO respectively.
Coconut: The revered tree in India, Unlocking the hidden potential:

The Coconut Palm (Cocos nucifera Linn.) is supposed to be one of the five legendary
Devavrikshas and is eulogised as Kalpavriksha - the all giving tree - in Indian classics. Coconut
is grown in more than 86 countries worldwide, with a total production of 54 billion nuts per annum.
India occupies the premier position in the world with an annual production of 13 billion nuts,
overtaking Indonesia and the Philippines, the other two prominent coconut-growing countries. The
coconut palm is a versatile tree crop; no other tree crop grown can match coconut palm in its
versatility. It provides nutritious food and a refreshing drink, oil for edible and non-edible uses,
fibre of commercial value, shell for fuel and industrial uses, thatch, an alcoholic beverage, timber
and a variety of miscellaneous products for use as domestic fuel

In India, coconut is cultivated mainly in the coastal tracts of Kerala, Tamil Nadu, Karnataka,
Andhra Pradesh, Orissa, West Bengal, Pondicherry, and Maharashtra and in the islands of
Lakshadweep, Andaman and Nicobar. Of late, coconut cultivation has been introduced to suitable
locations in non-traditional states including Assam, Gujarat, Madhya Pradesh, Rajasthan, Bihar,
Tripura, Manipur, and Arunachai Pradesh and in the hinterland regions of the coconut growing
states. Kerala is the main coconut growing state with an area of 10.20 lakh hectares and production
of 5911 million nuts, followed by Tamil Nadu (3.20 lakh hectares and 3716 million nuts),
Karnataka (2.87 lakh hectares and 1493 million nuts) and Andhra Pradesh (0.95 lakh hectares and
780 million nuts). These four southern states together account for 90 % of the total production in
the country.

In productivity too, India ranks number one among other coconut growing countries in the world.
The average productivity of coconut in the country is 6898 nuts per ha. Among the four major
coconut growing states, Tamil Nadu has the highest productivity (11 620 nuts/ha), Andhra Pradesh
has a productivity of 8296 nuts/ha, followed by Kerala (5793 nuts/ha) and Karnataka (5204
nuts/ha).

All India estimates of coconut production is as follows:

2007-2008 (Revised) 2008-2009 (Final)

 Production Production
States /Union AREA ('000 Productivity AREA ('000 Productivity
(Million (Million
Territories Hectares) (Nuts/ha) Hectares) (Nuts/ha)
nuts) nuts)

Andhra Pradesh 101.32 1119.26 11047 104.00 970.00 9327

Assam 19.00 136.00 7158 18.80 147.10 7824

Goa 25.50 127.60 5004 25.61 128.18 5005

Gujarat 16.40 138.30 8433 15.98 157.42 9851

Karnataka 405.00 1635.00 4037 419.00 2176.00 5193

Kerala 818.80 5641.00 6889 787.77 5802.00 7365

Maharashtra 21.00 175.10 8338 21.00 175.10 8338

Nagaland 0.90 0.20 222 0.92 0.55 598

Orissa 51.00 275.80 5408 51.00 275.80 5408

Tamil Nadu 383.37 4968.20 12959 389.60 5365.00 13771

Tripura 5.80 11.40 1966 5.80 11.40 1966

West Bengal 28.60 355.50 12430 28.60 355.50 12430

A & N Islands 21.60 80.60 3731 21.69 82.00 3781

Lakshadweep 2.70 53.00 19630 2.70 53.00 19630

Pondicherry 2.20 26.60 12091 2.10 30.70 14619

All India 1903.19 14743.56 7747 1894.57 15729.75 8303

India enjoys a very strong position in terms of coconut production but has not taken commercial
leverage of the same. The coconuts are transported from one part of the country to another and are
sold on hand driven carts or other retail outlets. But there exists a huge potential to leverage the
opportunity of selling coconut water in the country.
The health benefits of coconut water are well established but still its consumption is limited, none
of the beverage organization has made an attempt to commercialize and capitalize on the benefits
of coconut water. The recently witnessed backlash against the carbonated beverages industry may
prove to be a warning to juice companies that consumers are becoming more aware of the amount
of sugar that a beverage contains. With record levels of obesity and diabetes prevalent in society,
it is little wonder that consumers are looking to moderate or eradicate the consumption of products
which are deemed too sugary. It is telling that the only sub-category which has grown both
historically and in forecast is juice, which is typically regarded as the healthiest of the available
options regarding ingredients and formulation.

An Indian beverage company is contemplating with the idea of introducing packaged coconut juice
in market. Suggest the positioning platform for the product, create a brand identity, decide the core
values of the brand and decide on programs to communicate the same, how you will differentiate
your offering from others, and how you will build relationship with customers?

CASE STUDY: 3, Khadi: Victorious against British but struggling with

Indians

Khadi and non-violence were two powerful weapons with which Mahatma Gandhi equipped
Indians to throw out British colonial rulers. In 1920, Indian National Congress at its Nagpur session
first declared its aim to promote Khadi as the nationalist fabric which Gandhi ji referred to as
“livery of freedom”. Soon khadi became the symbol of defiance as massive bonfires were lighted
across the country and Indian struggled against colonialism by burning their Manchester textiles.
Khadi continued to grow into prominence and a place of pride for Indians.

Khadi and Village Industries Commission (KVIC): Khadi and Village Industries Commission
(KVIC) is a statutory body created by an Act of Parliament (No.61 of 1956 and as amended by
Act.No.12 of 1987 and Act.No.10 of 2006). It has been entrusted with the responsibility for
planning, promotion, organization and implementation of programmes for the development of
Khadi and other village industries in rural areas in coordination with other industries engaged in
rural development, wherever necessary. Established in April 1957, it took over the work of the
former All India Khadi and Village Industries Board. KVIC functions under the administrative
control of the Ministry of Micro, Small and Medium Enterprises, Government of India.

The broad objectives that KVIC has set out:

_ The social objective of providing employment.
_ The economic objective of producing saleable article
_ The wider objective of creating self-reliance amongst the people and building up of a strong rural
community spirit.

Its functions comprises building up of a reserve of raw materials and supply to producers, creation
of common service facilities for processing of raw materials as semi-finished goods and provisions
of facilities for marketing of KVI products. It also organizes training of artisans engaged in Khadi
& Village Industries Khadi consists of hand spun and hand woven cotton, woolen, Muslin and silk
variants. Although KVIC often reminds us of Khadi only, while the fact is it also includes products
made by village industries as well. Khadi means any cloth woven on handlooms in India from
cotton, silk or woolen yarn handspun in India or from a mixture of any two or all of such yarns.
Khadi is estimated to constitute less than 1% of India’s textile market. The growth in production
and sales of khadi is marginal compared to the increase in the production of textiles at a compound
growth rate of 7% in volume and 15% in value during FY2002– FY2006.

The Village industries include:

o Mineral based industries

o Agro and rural industry
o Forest based industries
o Rural Engg and biotechnology
o Hand made paper and fibre industry

Khadi acted as a strong weapon in India struggle for freedom. After independence KVIC was
established to provide training, financial assistance to common Indian to create many micro
enterprises to make country self reliant and create employment generation opportunities to the
people of India. Since independence the government every year provides budgetary support to
KVIC to impart necessary training, skill enhancement etc. Apart from budgetary support the
government from time to time has taken various initiatives to strengthen KVIC.

Budgetary Support provided by Government

Khadi is not only about making and selling cloth or other products its also about creating
employment generation opportunities and self reliance amongst Indians. Some of the highlights of
KVIC for the year 2007-08 are as follows:

 Production : 12,383.84 Cr
 Sales: 15,276.02 Cr
 Employees: 82.77 Lakh
 Villages: 3 Lakh

For the year 2007-08 the sale of KVIC was almost equal to sales of Hindustan Unilever Limited.
For marketing it has 23 departmentally run Khadi Gramodyog Bhavan and 7050 sales outlets
throughout the country. Probably in terms of number of retail outlet no other retailer can match
KVIC. The number of outlets of KVIC are even more than the retailing giant WalMart.

Khadi for “My Dadi”:

In the last decade or so Khadi is gradually losing grip on markets. Common perception is Khadi is
more suitable for older people (grandparent generation). It has become attire of politician and few
other niche segments of society. For general customers 2nd October sale is the only attraction, more
than half of the sale of KVIC is during this period only. Although Khadi is popular has high
awareness as well but it is gradually losing to modern fashion retailers and designers.

Khadi has its challenges in its spectacular growth mostly on account of conservative market
thinking which resisted reform to the changing, competitive market and participate in the growth
bandwagon. Progressive khadi activists and Khadi-lovers have realized its true value and are most
vocal today for reforms and are voluntarily taking up the “reform package”. The basic approach
being adopted is making khadi activities artisan-centric without compromising the growth and
sustainability of the sector.

From customer’s point of view, khadi should be more accessible, well-priced, stylish enough to
cater to the taste of urban India and to catch the imagination of the younger generation with a
cultural resonance in the form of a pride just as the world has now recognized our economic
resilience due mainly to a strong domestic market and in the past had found their way in the
Gandhian values. To fit perfectly, khadi has already become a style statement for many along with
proving employment to the large population. Thus, Khadi is now not just only a device used by
Gandhi ji for freedom but it is life of many Indians.

Studies indicate that the customers associate following attributes with Khadi:

1) Sense of pride and self reliance.

2) India’s struggle for freedom and Gandhiji
3) Good but “Khadi for dadi” notion.
4) Value in sale period only.
5) Conservative and obsolete products.
6) Boring packaging of products in an era of “Jo Dikhta hai who bikta hai”.
7) Comfortable.
8) Cheap.
9) Heritage brand which failed to change with times.
10) Dull and lethargic employees.
11) Boring and unattractive outlets.
 12) Shopping experience of 19th century.
13) Take it easy approach.
14) Missing competitive spirit.
15) Reverence.

These are some common attributes which are mentioned by customers when they think about
Khadi.

Khadi ‘It’s Different’:

It is unique for its property of staying cool in summer and warm in winter which makes it exclusive
among the fabric. The products are unique in the sense that they are one of a kind besides being
truly “cottage” or “hand-spun” and “hand woven”. They are “flawed” and are not mindless creation
of machines.

That’s why each piece of khadi is different and as such many won’t mind paying for its exclusivity.
It gets softer with each wash which makes it ideal tropical fabric. The government from time to
time has taken various initiatives to popularize Khadi in fashion shows and various exhibitions in
national and international platform, but the efforts have failed to deliver results. From New York
to Paris, the Mahatma's fabric is haute this season. Rue Debelleyme, one of the most chic streets
in Paris, is attracting a large number of people of late. It does not sell fancy silk, cashmere or
designer clothes that the fashion capital of Europe is known for; Danish textile designer Bess
Neilsen's Khadi & Co displays an exotic range of khadi kurtas, tunics and trousers that have
become a rage for Parisians as well as tourists who visit the city. Neilson says,"My ultimate dream
is to use lot of colour and chikan embroidery on khadi, with modern techniques. The best part of
this fabric is that it's a fabric of maturity."

Fashion designer Christina Kim's shop Dosa, in Los Angeles, USA, sells high-end khadi clothes.
Her Bohemian aesthetic with simple shapes has made quite a few Hollywood biggies her fans.
Indian fashion designer Gaurang Shah, who gave a new spin to khadi at his show at Berlin Fashion
Week last month, is getting ready for another khadi special this November — the prestigious New
York Fashion Week.
Clearly, Mahatma Gandhi's fabric of compassion is making a big global statement this fall. Says
Neilson from Khadi & Co, Paris, about the fabric's current 'haute' status: "There's great beauty in
hand-spun khadi. Its unique flexibility keeps you warm in winter and fresh in summer." Tourists
from all over the world, especially Japan and Italy, love their kurtas in white, and the black
pashmina waistcoats. Neilson's range of shawls, tunics, scarves too fly off the shelves pretty fast.

Though appreciated for being eco-friendly and sustainable, khadi was criticised for its
coarsetexture and limited design range. But Shah, who personally loves the fabric, added a twist
by giving khadi a modern makeover, in Berlin. "I used 80 to 100 counts of thread per inch to make
the fabric more malleable (traditionally khadi uses 60 counts of thread per inch). My collection of
khadi had colourful floral patterns on a cream base." Berlin was fascinated by the skirts, flowy
dresses and jumpsuits that Shah's collection displayed. "I've got weavers in Andhra Pradesh who
work with myriad hues of khadi. They have done some very intricate embroidery, and managed to
make the fabric global," he says. Kim, whose clients include Jennifer Aniston and Michelle
Obama, has been listed as one of the most influential names in the world of sustainable fashion by
Time magazine. She has recently brought her collection to India, which is being sold at Mumbai's
Bungalow 8. "My aim isn't to make just fashion products. I want my fabric and designs to express
individuality. I want khadi to become a way of being and feeling." The fact that her products are
becoming popular in Los Angeles and New York shows that khadi's appeal has become far more
international.

The khadi craze isn't limited to clothes. In London's Conran shop, Abraham & Thakore's khadi
cushions have a unique desi charm. Says David of the designer duo, "Khadi beautifully utilises
certain skills. At the Conran shop, we sell plain, undyed fine khadi cushions without any
ornamentation; there's a huge demand for handmade khadi products."

Sotheby's London recently hosted an exhibition of contemporary design named 'Inspired by India'.
The show featured textiles, ceramics, jewellery, furniture and photography by established
designers, such as Alice Cicolini, Rahul Kumar and Sabyasachi Mukherjee and also showed works
from upand-coming artists such as Els Woldhek and Pia Wustenberg. They have all been inspired
by the culture, colours and crafts of India. Curator Janice Blackburnd says, "All the designers I
have selected share a passion for India. They have produced work which is a successful marriage
between the best of fine fabrics and original designs, without compromising the rich tradition of
India's handmaking processes."
"The West loves simplicity, and khadi is a fabric that defines simplicity as well as style."
Whether it's khadi towels, the Gandhi lamp, wooden bowls, or clothes made out of this fabric, the
message is clear: simplicity and minimalism are always in vogue.

Fashion designers have found khadi their canvas as imaginative creations. It is a ripe for re-
incarnation as a livery of young surging India. A rising number of young fashion designers are
seeking out local fabrics, craft and technique to give expression to this trend. The existing brands
of khadi are: khadi India or Khadi Bharat, Sarvodhya, Desi Ahar, Kutir and others. KVIC has also
taken following initiatives to strengthen brand image of Khadi:

 For quality control struck an alliance with IIT Delhi and National Institute of Design,
Ahmedabad.
 For Brand promotion came up with an umbrella brand “Sarvodaya” for pickles, toilet soaps,
Agarbattis and honey.
 “Desi Aahar” for pulses, cereals, spices etc.
 USP being non toxicity and eco-friendliness.

Challenges to handle:

In its commitment to make Khadi a popular brand in India and increase its acceptance amongst
Indian youth/common man, KVIC is planning to put fresh breath of life to Khadi. Help KVIC in
designing a detailed study to understand what the customers/other stakeholders think about brand
Khadi. Suggest which information should be gathered, how it should be gathered, who should be
targeted, and what may be the appropriate sample constitution. If information is to be captured
quantitatively suggest the questions to be covered.

Also suggest measure to strengthen Brand Khadi amongst Indian customers, Decide on positioning
platform, values, elements of brand Khadi and also suggest a communication plan for the same.
 CASE STUDY: 4 , OLIVE OIL: LIVE A BETTER LIFE

The demand for edible oils in India has shown a steady growth at a CAGR of 4.43% over the
period from 2001 to 2011. The growth has been driven by improvement in per capita consumption,
which in turn is attributable to rising income levels and living standards. However, the current per
capita consumption levels of India (at 13.3 Kg/year for 2009-10) are lower than global averages
(24 kg/year).The Indian edible oils market continues to be underpenetrated and given the positive
macro and demographic fundamentals it has a favorable demand growth outlook over the medium-
to-long term.

In terms of volumes, palm oil, soya-bean oil and mustard oil are the three largest consumed edible
oils in India, with respective shares of 46%, 16% and 14% in total oil consumption in 2010.

The Indian edible oil industry is highly fragmented, with the presence of a large number of
participants in the organised and un-organised sectors. This has resulted in severe competition and
inherently thin profitability margins. Further, the profitability of market participants is also
vulnerable to risks emanating from weak harvests; commodity price volatility and forex
movements. An important characteristic of the Indian edible oil consumption pattern is the
variation in preferences across regions, driven by taste and availability. For instance, soya-bean
oil is mainly used in northern and central regions of India due to the local availability of soya
beans. Mustard oil is largely consumed in north-eastern, northern and eastern regions of India, as
its pungency is a desired and inherent part of the local cuisine. Palm oil has increasingly become
the oil of choice in southern India due to the warmer climate (palm oil gets a cloudy appearance
in colder climates) and easy availability from South-east Asia.

The increased health awareness also determines the consumption pattern with mustard and soya
considered healthier than palm oil, which has higher levels of saturated fats. Oils like rice bran and
olive are also gaining popularity due to their superior health properties, although their consumption
remains fairly low in absolute terms. Further, price economics also have an important role to play
in determining consumer choice, given that expenditure on edible oil constitutes a significant
portion of the household budget. In terms of volume, palm, soyabean and mustard/rapeseed oil are
the three major edible oils consumed in India and together account for 75% of the total edible oil
demand.

The market includes some large industry participants like Marico Limited, Cargill India Private
Limited, Adani Wilmar Limited, Ruchi Soya Industries Limited and KS Oils Limited. Given the
presence of a large number of un-organised participants in the Indian edible oil market, the share
of branded product sales has remained low with most low-income consumers opting for cheaper
oils sold in loose form. As per industry data, only about 31% of urban households and about 9%
of rural households consume branded edible oils, with the national average at 16%. Given the low
penetration of branded oils; increasing affluence levels and quality consciousness of the Indian
consumers, there is a significant growth potential in the branded segment.

Olive Oil reaches Indian Kitchen: Olive oil at one point of time was used as massage oil in Indian
households’. But the opening of India’s economy and increasing exposure to world trends in
cuisine and other areas has slowly brought olive oil to the attention of health-conscious Indians.
The Indian olive oil market pegged at Rs 52 Crores until 2006, is now at Rs. 380 Crores. and
expected to reach Rs. 550 Crores by the end of 2012 .The consumption is pegged at 42,218 tons
by 2012 by Indian Olive Association growing at a rate of 75 per cent a year. This growth is
expected as the discretionary income on food items is expected to rise in coming years.

In addition to bolstering the immune system and helping to protect against viruses, olive oil has
also been found to be effective in fighting against diseases such as:

Cancer: The phytonutrient in olive oil, oleocanthal, mimics the effect of ibuprofen in reducing
inflammation, which can decrease the risk of breast cancer and its recurrence.
Heart Disease: Olive oil helps lower levels of blood cholesterol leading to heart disease.

Oxidative Stress: Olive oil is rich in antioxidants, especially vitamin E, long thought to minimize
cancer risk. Among plant oils, olive oil is the highest in monounsaturated fat, which doesn’t oxidize
in the body, and it is low in polyunsaturated fat, the kind that does oxidize.

Blood Pressure: Recent studies indicate that regular consumption of olive oil can help decrease
both systolic and diastolic blood pressure.

Diabetes: It has been demonstrated that a diet that is rich in olive oil, low in saturated fats,
moderately rich in carbohydrates and soluble fiber from fruit, vegetables, pulses and grains is the
most effective approach for diabetics. It helps lower “bad” low-density lipoproteins while
improving blood sugar control and enhances insulin sensitivity.

Obesity: Although high in calories, olive oil has shown to help reduce levels of obesity.

Rheumatoid Arthritis: Although the reasons are still not fully clear, recent studies have proved that
people with diets containing high levels of olive oil are less likely to develop rheumatoid arthritis.

Osteoporosis: A high consumption of olive oil appears to improve bone mineralization and
calcification. It helps calcium absorption and so plays an important role in aiding sufferers and in
preventing the onset of Osteoporosis.

The Key aspects of the Indian olive oil market are:

 Size is small but growing fast.

 Retail is the biggest segment accounting for 75% - 80% of sales, of which modern trade
(organised retail) is the key driving segment accounting for greater than 70% of the retail
sales.
  Olive Oil has been increasing in demand due to the increased purchasing power of Indian
consumers, increased awareness; increased health consciousness, changes in lifestyle and
eating habits
 Also it has received impetus as it is strongly recommended by doctors for the patient having
various health issues.
 The brands available in the Indian market are predominantly Italian, with one American
brand, Bertolli. Of the current market share of an estimated 1,700 tonnes of olive oil
imported into India, the brand Leonardo claims 15 per cent of the market share with 255
tonnes, while Colavita has 150 tonnes or 11 per cent.

Olive oil act as medium for cooking, especially for Italian dishes. Italian cuisine is incomplete
without olive oil. As Indians are travelling a lot to foreign destinations, they are bringing the new
cuisines which are giving its way to specialty restaurants in India. Nowadays, specialty cuisines
like Italian, Continental, Western, Mediterranean and oriental use olive oil as cooking medium.
Olive oil is finally creating a niche in India’s edible oil market. With 60 percent of the national
market being controlled by 3 companies in India, and Spain and Italy accounting for 90 percent of
the import, there is definitely a potential for other companies and producers to enter the market
and more are expected to do so. The price ranges from INR 600 to 1100 per litre for different
quality of brands.

CASE STUDY: 5, McDonalds : From I am loving it to I am

regretting it

McDonald's is the world's leading food service retailer with more than 35,000 restaurants in 119
countries serving more than 68 million customers each day.
In India, McDonald's is a joint-venture company managed by two Indians. While Amit Jatia, M.D.
Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India,
McDonald's restaurants in North & East India are owned and managed by Vikram Bakshi's
Connaught Plaza Restaurants Private Limited (CPRL).
However in May, 2019, the local unit of the US fast-food chain on Thursday said it has bought out
Bakshi’s 50% stake in their joint venture (CPRL). The move marks an end to the fast-food chain’s
association with in the country in the mid-1990s and then expanded to more than 160 restaurants
in north and east India.

McDonald’s India Pvt. Ltd (MIPL), along with its affiliate McDonald’s Global Markets Llc, now
wholly owns CPRL, the US fast-food chain said in a statement on Thursday. CPRL will now be
headed by Robert Hunghanfoo.

Celebrating over 15 years of leadership in food service retailing in India, McDonald's now has a
network of over 400 restaurants across the country, with its first restaurant launch way back in
1996. Prior to its launch, the company invested four years to develop its unique cold chain, which
has brought about a veritable revolution in food handling, immensely benefiting the farmers at one
end and enabling customers to get the highest quality food products, absolutely fresh and at a great
value. The guiding success factors for McDonalds include

Local Sourcing for Truly Indian Products:

McDonald's India is committed to sourcing almost all of its products from within the country. For
this purpose, it has developed local Indian businesses, which can supply them the highest quality
products required for their Indian operations. Fresh Lettuce is sourced from Pune, Delhi, Nainital
and Ooty; Cheese from Dynamix Dairies, Baramati, Maharashtra; fresh Buns from Mrs. Bector
Foods, Phillaur, Punjab & Khopoli, Maharashtra; Sauce from Mrs. Bector Foods, Phillaur, Punjab,
Chicken Patties, Vegetable Patties, and Veg.Pizza McPuff from Vista Processed Foods, Taloja,
Maharashtra. Dairy Products are sourced from Amrit Food, Ghaziabad, UP. All our suppliers are
HACCP certified.

Respect for the Indian Customs and Culture:

McDonald's worldwide is well known for the high degree of respect to the local culture.
McDonald's has developed a menu especially for India with vegetarian selections to suit Indian
tastes and culture. In line with its respect for local culture, India is the first country in the world
where McDonald's does not offer any beef or pork items. Special care is taken to ensure that the
vegetable products are prepared separately, using dedicated equipment and utensils.

Quality, Service, Cleanliness & Value :

The USP of McDonald's is Quality, Service, Cleanliness & Value for money which means a focus
on providing customers high quality products, served quickly with a smile, in a clean and pleasant
environment at an affordable price. The McDonald's philosophy of QSC&V is the guiding force
behind its service to the customers.

Community Partnership:

McDonald's believes in giving back to the community it serves. Wherever McDonald's goes, it
becomes a part of the community it operates in and contributes towards the development of the
locality. For example, McDonald's has introduced the concept of 'Litter Patrols' - McDonald's
employees go around the market every day, picking up garbage left behind not only by customers
from McDonald's restaurants but also by other visitors in the area. The result is a cleaner
neighborhood.

McDonalds from I am loving it to Not so loving:

On one hand McDonalds is recognized as a successful food joint wherever they are present but
they continue to fight in shedding their junk image. An average of 1.2 million Australians went
through McDonald's golden arches every day in 2007. But at the same time they had to tackle the
negative publicity generated by Morgan Spurlock's 2004 documentary Super Size Me, which
highlighted the filmmaker's 11-kilogram weight gain and associated health problems after he ate
nothing but McDonald's for 30 days.

Dr Linda Schachter, a physician at The Centre for Bariatric Surgery in Victoria, which specializes
in the surgical treatment of obesity, said it was "incredibly disappointing" to hear that more people
than ever were eating McDonald's.
"Society is getting more overweight and obese and it's disappointing to think that nearly 5% of
Australians are eating McDonald's every day," she said.

It’s the similar story of success and sin in U.S as well; middle-aged women in the U.S. (those
between the ages of 35 and 54) are having more strokes than ever, a trend researcher’s blame on
the growing obesity epidemic and too many working women eating out at McDonalds and other
fast food restaurants.

About 1.8 per cent of women ages 35 to 54 reported suffering a stroke in the most recent federal
health survey, from 1999 to 2004. In the previous survey, from 1988 to 1994, only 0.63 per cent
reported strokes. Strokes most often occur in older people, so the sudden spike in middle-age and
the reasons behind it are worrisome, say doctors participating at the American Stroke Association's
International Stroke Conference 2008.

Almost 15 per cent women in the more recent survey reported using medications to lower blood
pressure, compared to 8.9 per cent in the earlier survey. And nearly four percent of women in the
more recent survey used medications to lower cholesterol, versus 1.4 percent in the previous
survey. But the biggest difference came with weight, said lead author Dr. Amytis Towfighi, an
assistant professor in the Neurology Department at the University of Southern California in Los
Angeles.

Women in the more recent survey were significantly more obese than women a decade prior, with
an average BMI of 28.6 versus 27.1 the decade prior. A BMI of 25.0 to 30.0 is overweight, while
BMI of 30.1 or more is obese. "In addition, women in the latest survey had an average waist
circumference of nearly four centimeters more than women in the earlier study.

"Abdominal obesity is a known predictor of stroke in women and may be a key factor in the midlife
stroke surge in women," Towfighi said.

McDonalds and children:

On one hand McDonald is the preferred destination for kids and younger population, at the same
time its junkie image bothers the customers as well. The parents are concerned towards the health
of their children and obesity related problem, and many times they have to trade off obesity for
fun filled meals.

Today children find themselves amidst a complex society that is undergoing breathtaking changes.
Concepts, relationships, lifestyles are metamorphised to accommodate the new jet-setting age.
Food is no exception. Healthy nutritious foods have been replaced by the new food mantra - JUNK
FOOD! Junk food comprises of anything that is quick, tasty, convenient and fashionable. It seems
to have engulfed every age; every race and the newest entrants are children. Wafers, colas, pizzas
and burgers are suddenly the most important thing. The commonest scenario is a child who returns
from school and plunks himself in front of the television, faithfully accompanied by a bowl of
wafers and a can of cola. Children suddenly seem to have stepped into a world of fast foods and
vending machines, totally unaware of the havoc they are creating for themselves.

The years between 6-12 are a time of steady growth; good nutrition is a high priority. Children
must know that what they eat affects how they grow, feel and behave. Changes in our society have
intensified the need for food skills, to the extent that they need to become a part of the child's basic
education for good health and survival. The vast majority of working mothers with school age
children are labored with exhausting commutes, upswings in the households, and stress, leading
to a situation where parents get to spend limited time with their children. Traditional food skills
are not passed on automatically from parent to child. Most people have forgotten that the primary
reason for eating is nourishment. In the not so distant past, food was treated with reverence because
of its life sustaining quality. Enjoying a meal was sharing experience with the others. Today family
dinners are rare.

Most of the times these junk foods contain colors that are laced with colors, those are often
inedible, carcinogenic and harmful to the body. These foods and their colors can affect digestive
systems, the effects of it emerging after many years. Studies have found that food coloring can
cause hyperactivity and lapses of concentration in children. Children suffering from Learning
Disabilities are often advised against eating food with artificial coloring. Chocolates, colas,
flavored drinks and snack tit bits are full of artificial coloring.

Not surprisingly, junk food not only has physiological repercussions, but also psychological ones
- far reaching ones that affect the child's intellect and personalities. Coping intelligently with their
dietary needs increases their self-esteem, and encourages further discovery. School days are full
of educational challenges that require long attention spans and stamina. Poor nutritional habits can
undermine these pre-requisites of learning, as well as sap the strength that children need for making
friends, interacting with family, participating in sports and games or simply feeling good about
them.

According to medical research, it is proved that, junk food is not at all good for human health but,
if an individual can not eliminate junk food from his/her life, then it is better to consume it
minimally to avoid all the health problems caused by junk food.
Harmful effects of junk food:

 Lack of energy - It is the most common effect noticed by excessive intake of junk food.
Usually, junk food does not have any kind of essential nutrients. That is why, after having
junk food, the human body does not get proper nutrients and suffers from the deficiency of
energy. Consuming poor nutrients could be as an addition.
 Heart Diseases-A regular intake of junk food can lead to several heart diseases including
Myocardial infarction which is a severe heart problem. Cardiologists refer to avoid junk
food as these are the major causes of severe heart diseases.
 High Cholesterol- Besides the formation of plaques and cholesterol deposition in the inner
wall of arteries, cholesterol can also impacts on human liver where it is metabolized. Junk
food consists of high cholesterol and a regular intake of junk food leads to severe liver
damages
 Poor Concentration -It is one of the major ill effects occurred by the regular intake of
junk food. This junk food makes an individual feel drowsy and it leads to poor
concentration. Over constant periods of having junk food, blood circulation drops due to
heavy fat deposition in the inner walls of arteries.

Moreover, deficiency of vital nutrients, oxygen, and proteins can decay human grey (brain) cells
for the time being. This is also a major problem occurs by the intake of junk food.

McDonald's is "not just about burgers and fries any more.

From time to time McDonalds has taken various initiatives for overcome its junk image.

"McDonalds have broadened their appeal and are responding to consumers who are demanding
high-quality products,"

The $2.5 billion company has been transformed over the past six years after a decade of declining
sales in Australia. Its menu now features lighter options such as salads and sandwich wraps and
food is cooked in an oil blend that has 85percent less trans fatty acids.
Since 2006 McDonald's has had "percentage daily intake" information on its packaging, so that
customers can see the energy content and nutrients in its food. Some of Canada's largest food and
drink companies, including heavyweights like McDonald's, Coca-Cola, Kellogg and Kraft, are
promising not to advertise directly to children, and if they do, they will only promote their healthier
products. In the last several years they've introduced new product lines, re-formulated their foods
to make them more nutritious, developed their own campaigns encouraging children to play sports
and be active or have partnered with organizations like participation, and sponsored events like the
Olympics.

Very recently bowing to pressure from health advocates and parents in U.S McDonalds is putting
the Happy Meal on a diet. The company announced that it would more than halve the amount of
French Fries and add fruit to its popular children’s meal in an effort to reduce the overall calorie
count by 20 percent. McDonald’s made it clear that it was changing the composition of Happy
Meals in response to parental and consumer pressure. It also pledged to reduce the sodium content
in all of its food by 15%, with the exception of soda and desserts. It has set a deadline of 2015 for
limiting salt, and said it would spend the rest of the decade cutting back on sugars, saturated fats
and calories and making adjustments in the portion sizes. The new Happy meals will be introduced
in September and rolled out across the company’s 14000 restaurants by April 2012. They will all
include apple slices and less fries. Parents will have the option of requesting more fruits or possibly
at a later date vegetables instead of fries. McDonalds will also offer a fat free chocolate milk option
along with the option of low fat milk or the traditional soda. The price in not expected to change.
Today’s Happy meal with chicken nuggets has 520 calories and 26 grams of fat and the re-
constituted version will have 410 calories and 19 grams of fat.

Fighting to be fit:

One way to stay fit is involvement in some level of physical activity. College students can change
the obesity rate in West Virginia simply by walking to class. West Virginia is listed as the number
three state with the highest obesity rating, according to WebMd. Kristy Blower, coordinator of
physical activity for the office of Healthy Lifestyles, said moderate exercise for 30 minutes a day
at least four or five days a week is the amount of exercise that a person should receive.
"We are finding out that college students can accumulate the recommended amount of exercise in
a day by walking from class to class, taking the steps rather than the elevator and choosing a
parking place that is the farthest distance away," Blower said.

McDonald’s has responded well by making changes in its menu to shed the junkie image. Suggest
some measure to help McDonald in shedding its junkie image, strengthen relationship with its
customers and in creating a firm belief in customers’ that McDonalds is committed towards health
of customers as well.

Case Study : 6, How to Compete with a Goliath?

“It feels weird eavesdropping like this,” Alejandra Chirinos told Ricardo Rodriguez, her marketing
VP, and Miguel Martinez, her head of sales. They were in a conference room in Lima watching a
focus group in Surrey, England, via Skype as the group discussed the fashion ponchos designed
and manufactured by Alejandra’s five-year-old company, Tela.

Ricardo chuckled. “They know they’re being watched,” he said.

Soledad Orellana, the market research consultant who’d arranged the session, concurred. “There
are cameras everywhere in that room.”

This was Alejandra’s first focus group. She’d agreed to it because Soledad and Ricardo had
convinced her that Tela needed to up its marketing game if it was to compete on an international
stage against the U.S– based poncho maker Saira. While Tela’s ponchos were made in Peru of
local, sustainable materials, Saira’s were made in Bangladesh of cheaper materials and labeled
―Peruvian design. But Saira had launched a few years before Tela and had quickly captured a
60% share of the category across markets in western Europe and North and South America—in
fact, in every South American country except Peru. This was mostly due to its smart and heavily
marketed ―buy one, give one business model: Like TOMS with shoes and Warby Parker with
eyeglasses, Saira donated one poncho to a person in need for each one a customer purchased.
Tela had a social mission too. It employed traditional weavers and set up programs to teach
weaving to underprivileged women. And not only were its ponchos authentically Peruvian, but
they retailed for $40 to $70, whereas Saira charged $60 to $100. But the company hadn’t been able
to get those messages across outside its home market, and Peru was too small to provide a platform
for continued growth.

Ricardo, a Lima native who’d been working as Saira’s head of marketing for South America, had
decamped from the U.S. Company’s São Paulo office to help Alejandra figure out how to better
position her brand. She was thrilled to find someone with his experience, not to mention a shared
love of the product and Peru. Together they’d decided to invest a sizable portion of their meager
marketing budget to partner with Soledad on developing and testing several marketing messages
in key expansion markets, such as the UK.

On-screen, a British facilitator stood facing ten compatriots. ―If you had to use one word to
describe the ponchos in your hands, what would it be? she asked. ―Soft, replied a woman with
dyed red hair.

An older lady spoke next: ―Peru.

―Real, said a man with a nose ring.

―I know this isn’t one word, but I have to ask a question, said a guy in the back. ―This is the
same poncho as Saira’s, right? With a different label?

The facilitator didn’t flinch, but Ricardo winced. ―Ouch, that stings, he said. He had come to
believe that Saira’s charitable giving was just a marketing ploy designed to cover the fact that the
quality of the products didn’t warrant their high prices.

―It’s not a bad thing, Miguel countered. ―If customers see no difference between our products
and Saira’s but ours cost less, it will be easy to take some of their market share.
This was an ongoing debate between the two: Should Tela emphasize the quality and authenticity
of its products, or their affordable prices? Alejandra had always argued that the company should
promote its social mission. It sometimes infuriated her that Saira had claimed the crown of ―do
good poncho company before Tela had had a chance to make a mark. But her colleagues and
Soledad agreed that the company needed one simple story to sell to customers around the world.
Saira had ―buy one, give one. What did Tela’s brand stand for?

Alejandra held up a hand to stop Ricardo and Miguel. ―We’re not here today to rehash old
arguments, she said. She looked at the screen. ―Let’s first listen to what they have to say,

The Social Mission

Soledad and Ricardo had come up with four concepts to test. The first emphasized Tela’s support
of local entrepreneurs and workers; the second it’s made-in-Peru bona fides; the third its price
point. The fourth was a combination of the other three.

As the facilitator read the taglines associated with the first concept—―Tela isn’t just about style;
it’s about livelihood and ―Our ponchos keep you warm and keep women entrepreneurs in
business—there was lots of nodding among those in the focus group. The red-haired woman talked
about how she tried to buy only ―socially responsible‖ products, and a young man agreed it was
important to ―give back to a cause.

Alejandra smiled. ―See, I told you mission matters, she said, forgetting the directive she’d given
moments before. ―Maybe we’ve found a winner.

―Not so fast, Soledad warned. ―That was just the first one.

Ricardo was only too happy to jump back into the conversation. ―Unfortunately for us, Saira has
already staked out that territory, he said.
―Yes, but it’s our territory too, Alejandra replied. ―I founded this company to give Peruvians
stable, well-paying jobs and to help develop a new class of entrepreneurs. That’s who we really
are.

―You don’t have to convince me that what we do is more effective and important than what Saira
does, Ricardo said. ―They hand out donations; we create employment and develop economies.
But they sold their social mission first and better. We can’t compete. We’d look like copycats—
ones with a much more complicated message.

―Or you could ride in their marketing tailwind, said Soledad. ―A lot of small companies have
grown by attaching their sails to the biggest ship.

As if on cue, the man who had mentioned their rival did so again.

―I would say that doing good is why Saira has become so big in the UK. When you buy a poncho
for yourself, you’re helping someone else. It’s easy to understand. I guess I care about helping
weavers and the Peruvian economy, too. But putting warm clothes on a child’s back? That just
feels good.

Ricardo gave Alejandra an ―I told you so look.

Authenticity

The facilitator turned to the next concept, the one positioning Tela as the maker of ―authentic
Peruvian ponchos with an emphasis on tradition and back-to-the-land craftsmanship. As soon as
she finished reading them, a young woman spoke up. ―I don’t understand the distinction you’re
trying to make. I know the knock-offs you see in Tesco and Topshop aren’t made in Peru. But
Saira’s are, right?

―Wrong! Ricardo shouted at the screen.

The facilitator explained the differences between the two companies’ supply chains, and Ricardo
got excited. ―I’m telling you, this is Saira’s Achilles’ heel, he said. ―The people buying these
ponchos want to know they’re getting the real thing, and my old colleagues are shaking in their
boots, worried that someone will expose their product as the fraud it is.

Miguel shook his head. ―You really think they spend time thinking about us? They’re too focused
on world domination. And what are you suggesting—that we go on the attack? Accuse Saira of
cultural misappropriation? Not only would that diminish our brand, it would be like a flea kicking
an elephant’s toe.

Alejandra shushed them. The Saira fan was talking again; she was beginning to think he worked
for the company. ―Does it really matter where they’re made as long as the quality is good and
you know you’re helping someone? he asked.

―It matters to me, said the man with the nose ring.
―Yes! Ricardo shouted, pumping his first as if he were watching a soccer match, not a focus
group.
―I disagree, the redhead said. ―And Saira’s not lying. It’s a design from Peru that’s made in
Bangladesh— where they probably need jobs too, by the way.

Several others in the focus group murmured in agreement. Ricardo groaned.

Affordability

The facilitator turned to the taglines designed to emphasize Tela’s affordability: ―Fashion at the
right price and ―A poncho for real people.

Miguel leaned forward. ―If Saira has an Achilles’ heel, this is it, he said to Ricardo. ―Customers
might say they care about social mission or authenticity, but all they really want is a nice poncho
for a good price.
―This is where Saira’s size helps you, Soledad said. ―They’ve built up demand, and you can
swoop in and win over the more price-sensitive consumers without having to spend a lot.

―And I don’t need to tell you how little we have to spend, Miguel said. ―At least compared with
Saira.

―But will a $20 price difference matter that much? Ricardo asked.
―Let’s find out, said Soledad, pointing to the screen.

The man with the nose ring was speaking. ―Wait a minute, he said. ―How can Tela provide the
same quality as Saira at a lower price? I mean, if it’s selling its ponchos so cheaply, are the weavers
even making any money?

―Because we’re not ridiculously marking them up, Miguel muttered.―It’s like people don’t
understand that the buy one, give one model means consumers are essentially paying for two
ponchos Ricardo said. On this point, he and Miguel saw eye to eye.

The older woman was telling the group why she liked this concept the best. ―Saira is for young
people. I’m on a pensioner’s income, and I want to know I’m getting the best deal out there.

After a pause, the nose ring guy spoke again. ―Still doesn’t make sense to me. Something’s fishy.
Miguel put his head in his hands.

―This is one of the risks of a fast-follower strategy, Soledad said. ―Consumers assume the lower-
priced product is lower quality.

―Which is why we should emphasize authenticity, Ricardo replied. ―Let people know our
product is the real deal. Alejandra admired his persistence.

―We’re not done yet, Soledad reminded them.

A Combination?

―I’m not sure why we’re even testing this batch, Miguel said as the facilitator turned to the last
concept, taglines that combined all of the other positions.

Alejandra knew they were doing it only to placate her, but she couldn’t help feeling that the more
complex message was the most accurate one. Tela didn’t just offer authentic ponchos made in
Peru, or ones that helped women and families, or ones people could afford. It offered all those
things, and she wanted consumers to understand that.

The facilitator read the taglines: ―Locally sourced and mission driven, without passing the cost
on to you. ―The real thing at an affordable price.―Buy Peru, build Peru.

When she finished, a long silence hung over both rooms. Alejandra waited for someone—
anyone—to speak.

―I’m sorry to say it, Jandra, but they look awfully confused, Ricardo said.
It was another few seconds before the man with the nose ring said, ―I don’t get it. What’s the
brand?

The redhead chimed in: ―Is this supposed to be all the messages mixed together?
Her comment elicited nods from her cohorts in Surrey.

Alejandra sighed. It looked like Soledad and the others were right.

The facilitator wrapped up the session, and the participants shuffled out, most giving a small wave
to the cameras as they walked by. After the screen in the Lima conference room went black,
Soledad was the first to speak.

―As I’ve said all along, the decision isn’t solely up to customers. Sure, the participants were
leaning toward the social mission, but I have hesitations about that direction. Branding is like
trying to buy real estate in the consumer’s mind, and I’m not sure you want to spend time and
resources fighting for the space Saira already has. You might be better off finding an empty lot
elsewhere. And at the end of the day, you need to land on a message that feels comfortable for
Tela.

Alejandra had to laugh. ―None of this is particularly comfortable, she said.

She was joking, but she didn’t know how they were going to resolve this. Ricardo had deep
industry experience, but she couldn’t tell if his judgment was clouded by a personal desire to
undermine his old employer. Miguel had been with Tela since the beginning but was acting the
way any salesperson would. Her own instinct was to promote the mission even if it meant an uphill
battle.
―It’s not easy, Soledad said with a sympathetic smile. ―You’re figuring out what the soul of
your company is.
―Or at least what we’re going to tell the world our soul is, Alejandra replied. ―I don’t want to
hide who we really are behind a message that’s easier to explain.

What should Tela do to strengthen the brand, which positioning platform they should adopt, how
they can differentiate their offering from Saira were few questions bothering Alejandra.

Case Study: 7, Morning Walk vs Morning Walker

Morning walk is simplest and most neglected form of exercise. Human Body is perhaps the best
example of self-sustainable machine. It has been designed keeping in mind the entire ecosystem.
The entire body requires oxygen to operate and the releases carbon di-oxide which in turn is again
used by plants to finally convert it into less harmful gases. Every human being agrees and believes
that some amount of exercise is good for keeping human body fit, but despite that there are plenty
of excuses for not indulging in exercise or any other physical form of activity. Any form of exercise
is often used as curative rather than preventive. Human body and its physiological activities are
complicated and difficult to understand and the same is true for human behavior as well, which
makes the job of a marketer tougher. Everyone is aware and believes that some form of exercise
is essential to keep the body in shape, but getting those 30-45 minutes in 24 hours is a difficult job
and probably a formal research might conclude with “1001 reasons for not exercising”.

According to health experts “Morning Walk” is best form of exercise, and a brisk walk for 45
minutes 4 days a week will give immense measurable benefits. Early Morning Walk provides
adequate amount of oxygen to lungs and blood thus leading to a feeling of re-energizing. It sets
the rhythm for body and sets the tone with nature. Starting with slow pace the duration and speed
may be increased with time. Researches have proved that brisk walk of 45 minutes, 4 days a week
will lead to 18 pounds weight loss in one year with no change in diet. It helps in burning calories
and fat to give body a better feel and figure.

Some benefits of morning walk include:

 Walking energizes, awakens the body chakras and relaxes mind.

 Provides adequate amount of fresh oxygen which releases huge amount of energy.
 Walking decreases stress hormones and increases relaxation hormones (beta-
endomorphins).
 Strengthens heart.
 Delays or prevents major diseases or illness.
 Reduces blood pressure and the risk of stroke.
 Reduces cholesterol.
 Strengthens joints and bones.
 Helps control weight.
 Improves mood and self-esteem.
 Contributes to “brain fitness”.
 Gives energy and a good night’s rest.
 Improves balance and circulation.
 Boosts immune system.

Morning Walk: Let’s Talk (data is hypothetical and should not be cited anywhere else)
A pan India study indicates that almost everyone is aware of the benefits of morning walk and
some exercise. Yet only 40% indulge in one form of exercise or the other. Out of these 10% are
enrolled with gyms and other health spas. 5% who belong to the premium or elite class have a
small gym in their home with personal trainer. Remaining 25% are morning or evening walker
based on their convenience.

In bigger cities/ metros finding a suitable place for a morning walk in itself has become a luxury.
Rapid urbanization has given rise to multi-storied residential/ commercial apartments. Although
the District Municipal/Development Authorities have done their jobs to some extent by
developing some parks for morning walkers where a minimum amount is charged as membership
to provide adequate space for walking in tune with nature. Smaller cities are still more greener
compared to bigger counterparts. For remaining 60% exercise is not a regular activity. Some of
them do it when they feel like but they are not regular with their exercise regime. Lack of time is
the biggest deterrent for adopting any exercise regime. Although they are also aware of the
benefits of exercise and also with the negative repercussions for not exercising still they find
themselves in limbo when it comes to adopting a suitable exercise regime. Housewives especially
find it difficult to fit exercise in their morning schedule because of responsibilities of kids and the
morning hassles.

Morning walk also faces many challenges, rainy days, chilling winter’s sends shivers to the will
power of even the die-hard morning walker fans. India’s climatic conditions makes morning walk
unsuitable for around 100-125 days in a year. The other challenge is finding a suitable place for
morning walk, in metros people have to travel to distances up to 10 km to reach the right
place/joggers park. Another threat which has emerged in last one decade is the security concerned.
Every year almost 05-20 politicians, bureaucrats or big businessman have been kidnapped,
attacked or killed while they were on a morning walk, their morning walk led them to the last
walk of their life. Many cases have cropped up where a female aged morning walker had been
duped off with their precious jewelry. Every now and then there are cases of hit and run cases
with morning walkers as well. These happenings have added to the excuse list for not walking in
morning and has further hampered the spirit of morning walkers.
From Morning Walk to Morning Walker

Considering the benefits of morning walk and the various deterrents associated with it, “Fit-Kit”
a multinational company dealing in health and exercise product is planning to launch a morning
walker in India. Morning walker is an incredible quality exercising machine that helps in keeping
fit and healthy. It is an amazing jogging machine to keep at home that helps in maintaining good
health and is great to have in daily life. 15 minute of Morning walker jogging is equal to 10000
seconds brisk walk. It provides the benefit of 8 km walk on foot which is great for maintaining
good physique.

The price ranges from 8000 -12000 INR. The product is portable and is easy to store as well. Using
the device on an empty stomach with only a glass of lukewarm water is very beneficial. The
product also helps in providing relief from constipation and indigestion or other stomach disorders.
Morning walker is also very effective in reducing your excessive body weight. Usage of the
product 2-3 times a day continuously for about 60 days will bring a noticeable change for sure.

Some Features:-

The product comes with great features such as -

 It is compact, portable and simple to use

 It is very economical.
 It makes bones and joints strong.
 Reduces muscle fatigue.
 Improves Blood Circulation.
 Relieves from various diseases/ailments.
 Enhances the functions of internal organ
 Balances autonomic nervous system
 Increases the breathing capacity
 Improves bodily fluid base-acid equilibrium
 Strengthened spinal column
 It consumes just 50 watts of power and comes with a fully automatic timer.
The company is planning a nationwide launch during New Year -2020 which like previous year
will be marked with lots of New Year resolutions in India.

Suggest a launch plan for morning walker, which different segments may be targeted, suggest the
brand elements, what should be communicated to different segments, identify any additional
information required and also mention how it may be collected and how it will help in arriving at
a better decision.