STRATEGY IMPLEMENTATION

The Formulation Implementation Grid

Presented By: Manjeet Pugalia, Roll No.23

The Formulation Implementation Grid

Good Implementation Good Positioning
M&M Scorpio

Bad Implementation
Reva, Electric Car

Bad Positioning

Kelloggs Cornflakes (India)

Maruti Versa

M&M Scorpio Good Positioning

M&M consciously did not positioned it as a SUV. M&M built an innovative positioning around the theme of an SUV with a `car plus' package. The positioning communicated that the vehicle offered something more than a car offered; more space, more comfort, more mileage and is a better buy in terms of money. Targeted upper middle class - who wanted a lifestyle product that assured style, performance and ruggedness. The ruggedness appeal came from the parent brand itself. The primary focus was on the lifestyle - a carefree, successful and bold attitude depicted by cruising on international highways.

M&M Scorpio - Good Implementation

Promotion activity touched the rising aspiration of successful upper middle class Indians and placing the Scorpio in the mind to meet that need - Nothing else will do The commercials intentionally used foreign models to give an international look and feel to the product; there was a deliberate emphasis on the aspirational and world-class orientation of the Scorpio. The advertisement was unique in certain aspects to India, whose upper-middle class consumer increasingly placed value on international imagery of success - hence foreign models and foreign locations, to bring associations of global excellence and also to obfuscate the parent Mahindra image of rural, off track vehicle for transport purposes. Advertising was strongly reinforced with below the line marketing - sponsoring events and strong test drive marketing.

M&M Scorpio - Good Implementation Contd..

Pricing Strategy always in accordance with the target segment. M&M promising a good overall ownership experience Continued Up gradation both interiors & exteriors Enhanced Quality, Safety Features & Technology Upgrade in every new model Extended Warranty Scorpio is now sold in over 15 countries including US & EU The car has been the recipient of three prestigious awards: the "Car of the Year" award from Business Standard Motoring; the "Best SUV of the Year" by BBC World Wheels; and the "Best Car of the Year" award, again, from BBC World Wheels.

Reva Good Positioning

Brand Positioning: City Car for the small family with low operating costs. Target Market Segment: Nuclear families with 1 or 2 small children, students, housewives, retired people and corporate buyers.

Reva Bad Implementation

Over Priced: The car is over-priced with basic model at Rs.2.75Lacs considering that the petrol car with better safety and air-conditioner is available at lower price. Promotions: The car was not promoted very well, product awareness is very low Product Development: Very less overall upgradation since its launch. Competition: With the launch of Tata Nano, the market for Reva has vanished completely. Government Regulations: The government has a five per cent duty for CNG/LPG kits as well as catalytic converters but the materials for electric vehicles attract a 20 percent duty making the cost of production higher. Overseas market: Considering the USP of the product, overseas market (both developed & emerging) should have been touched very aggressively which has not been done in this case. Limited Scope: The company got into talks with govt. & other pvt. agencies for recharge points in various Indian cities, but failed to get even reasonable no. of recharge stations. Future Costs: The replacement cost of the battery - Rs. 25,000 after 40,000 km.

Kelloggs Cornflakes in India - Bad Positioning

Positioned as a healthy, nutritious, convenient & easy - to -prepare alternative to traditional breakfast eating habits. Whereas at the most common way to start the day in India was with a bowl of hot vegetables with bread. Target segment was huge Middle class households (Problem of Cultural Complexity) Later refocused as Fun--Taste-&-Health.

Kelloggs Cornflakes Good Implementation

Reduction in Price - brought down price per kg by 20%. New Packaging - 500gm family pack, Rs.10 pack of each variant.

Launching of new products specific to Indian Taste

Worked on Better Positioning Iron Shakti. Iron-Shakti importance to the level of iron and vitamin intake. Gave away free gifts with packs of chocos.eg. Glowing stickers with Rs.10 pack of chocos. Distribution revamped: Availability in local retail shops.

Maruti Versa Bad Positioning

Versa was launched as an Affluent Microvan. The brand was positioned as "Two luxury cars for the price of one Versa was the logical upgrade brand for Maruti Omni. Omni was successful as a family van and Maruti thought that there is a market for a luxury van that can carry more passengers than an ordinary car. Good Positioning - a Multi Purpose Vehicle

Maruti Versa Bad Implementation

Pricing: Versa was launched with a price of Rs 5.15 lakh for the base model and the top end model costs around Rs 6 lakh. Versa was priced at par with Maruti Esteem and other entry level sedans Design: The ' mini bus ' shape of the car also was a put off for many customers. Brand Recall Very low

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