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JUNE 2009 EXAMINATION

MM01
MARKETING MANAGEMENT

Time : Three Hours Maximum Marks: 100

NOTE: The paper is divided into two sections. Section A and Section B. There are seven
questions in Section A. Students are required to attempt four questions from Section A
and Section B is compulsory. Each question carries 20 marks.

SECTION - A

1 a) Give the meaning and definition of marketing. What are the different concepts of
marketing and what do these concepts signify? (10)
b) Give the difference between marketing and selling. (10)

2 “A firm can realize all its business goals by generating customer satisfaction. The idea
may sound somewhat utopian. In reality, it is an eminently workable proposition.” What
is the mechanics through which a firm puts the marketing concept into practice to give
the concept of value and utility to the customer in making his purchase decisions?
(20)
3 a) Write short notes on the following:-
i) Concept of strategic business unit (SBU)
ii) BCG Matrix
iii) Ansoff Matrix
iv) 4 P’s of Marketing (5x4=20)

4 What is the purpose of marketing environment analysis and the factors to be covered under
environment analysis? (20)

5 a) What are different methods of sales forecasting?


b) What are the different stages in new product development? (10+10)

6 Write short notes on the following:-


i) Market segmentation and Targeting
ii) Product positioning
iii) Brand Extension, Rejuvenation, Re-launch
iv) Product life cycle (PLC)
v) Direct Marketing (4x5=20)
7 a) Differentiate between Intensive and Extensive distribution strategies.
b) Explain the IMC and its relevance in today’s market scenario?
c) Highlight the different methods and strategies of pricing.
d) What are the main steps in copy development under advertising management?
(5x4=20)

SECTION B

8 CASE STUDY

Advertising Research Helps Amul Challenge Kwality Walls

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), a dairy products


company established in 1946, is a market leader in various dairy product categories
including baby good, dairy whiteners, cheese, and butter. The company entered the 100
million liter per annum ice-cream business in 1997 with the Amul brand of ice-crams and
has made steady gains to become a leading brand in the ice-cream segment within a short
span of time. HLL’s Kwality Walls was the undisputed market leader in this segment till
Amul Ice-creams began to give it a tough fight after its launch. Kwality Walls emerged
as a mother brand after HLL acquired Kwality, Dollops and Milkfood and merged with
its own brand – Walls. Amul has been steadily increasing its market share over the years.
In 1997, HLL registered sales worth Rs1.52 bn at volumes of 24.60 million liters while
sales of Amul were worth Rs 270.40 mn with volumes of around 4 million liters. In 1999
and 2000, sales volumes of Kwality Walls were 24 million liters and 23 million liters in
2001. in contrast Amul improved its market share from 7.9 million liters in 1999 and
14.6 million liters in 2000 to 20 million liters in 2001.

The growth of the brand can be attributed to GCMMF’s wider distribution network
(available in over 1000 cities and towns across India) and price-value equation (products
were sold at 50% less than Kwality Walls). In the summer of 2002, Amul entered into
newer markets like Kolkata and Delhi (the largest ice cream markets in India). To ensure
sustained growth, the company decided to make changes to its existing marketing
communication programs. As a part of this change, FCB-Ulka, (which manages the
Amul advertising account) conducted an `Ice-cream Mood’ survey as part of its
Advertising research, among the target customers. The survey provided many useful cues
for Amul, which helped it develop an appropriate marketing communication strategy.
The survey findings stated that the take-away segments constituted only 20% of the total
ice-cream sales, which was pretty low compared to 70% in developed markets. The
difference was attributed to the Indian social context and the pricing levels of ice-creams.
Another interesting insight that the study gave was that ice-cream consumptions were
low, even in top metros, as ice-creams were eaten only on some special occasions.
Consumption was also restricted mainly to three flavours – vanilla, chocolate, and
butterscotch. In terms of brand perceptions, customers perceived Amul ice-creams to be
tastier and creamier than other hand, customers perceived Kwality Walls as a premium
brand that offered variety and range of flavors. Due to its contemporary image, Kwality
Walls also enjoyed a good market share and mindshare among the youth.

Based on these findings, FCB-Ulka developed a marketing communication campaign that


focused on the take-away segment, to help increase ice-cream consumption of its brand.
It launched the `Flavor of the Month’ campaign that highlighted the new exotic flavors
such as Black Current, Anjir, Cheese & Almonds, Cappuccino, Dates & Honey, Fresh
Litchi, Kulfi, etc. The rationale behind the campaign was to help increase the number of
`perceived occasions’ on which to eat ice-creams. However, the existing tagline `Real
Milk Real Ice-cream’ remained unchanged. Justifying the persistence of this tagline, Mr
Karkare, said, “We will be continuing the same baseline for Amul this season. After al,
Amul is still perceived as a milk and dairy company. It is the wholesomeness of its
products which gives it a competitive advantage.” In the summer of 2003, Amul
launched the mega-bite almond cone (the largest volume cone in the country), Santra
Mantra and (orange ice-cream), Bouncer for the growing children (an ice-cream with nuts
and essential proteins, vitamins and minerals), etc.

QUESTIONS:

1. Advertising research can help a company design an effective advertising


campaign. Why did GCMMF ask FCB-Ulka to undertake a survey? How far has
advertising research helped in designing the `Flavor of the month’ ad campaign?
2. There is a marked increased in the popularity of the `eating out’ concept and
impulse buying among Indian consumers. In light of this, to what extent is
GCMMF right in focusing its communications on the `take-away’ segment and
launching variants like the mega-bite almond cone (the largest volume cone in the
country)?
(10+10)

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