Consumer Behavior questions

7/25/2019 Consumer Behavior questions

http://slidepdf.com/reader/full/consumer-behavior-questions 1/19

INDIAN SCHOOL OF MANAGEMENT AND STUDIES

SUB: CONSUMER BEHAVIOUR MAX MARKS: 100

Master Program in Business Administration (MBA)

Note :- Solve any 4 Case Study

All Case Carry eual Mar!s"

CASE I

Sunder S#n$%

Sunder S#n$% %ad stud#ed only u& to %#$% s'%ool" He (as )*-years o+ a$e, l#ved alone #n a

rented roo, and (or!ed e#$%t-%our s%#+t at one &etrol &u&, t%en (ent to t%e ot%er one +or

anot%er e#$%t-%our s%#+t" He %ad a $#rl +r#end and (as &lann#n$ to arry"

One day (%en %e returned +ro (or!, %e $ot a note +ro %#s $#rl +r#end t%at s%e (as

$ett#n$ arr#ed to soeone else and %e need not .ot%er %er" T%#s (as a terr#.le s%o'! to

Sunder S#n$% and %e +ell a&art" He sto&&ed $o#n$ to (or!, s&ent slee&less n#$%ts, and (as very

de&ressed" A+ter a ont%, %e (as runn#n$ Io(an %#s sav#n$s and a&&roa'%ed %#s earl#er

e&loyers to $et .a'! %#s /o., .ut t%ey (ould not $#ve %# a se'ond '%an'e" He %ad to u#t %#s

rented roo, and sold +e( t%#n$s t%at %e %ad" He (ould do soe odd /o.s at t%e ra#l(ay stat#on

or t%e .us ter#nal"

One day, nearly t(o years a$o, %e (as very %un$ry and d#d not %ave any oney and

sa( a youn$ an sell#n$ ne(s&a&ers" He as!ed %# (%at %e (as sell#n$ and %e told %# a.out

Gu0ara 1an #nde&endent, non-&ro+#t, #nde&endent ne(s&a&er sold .y t%e %oeless, and

e'ono#'ally d#sadvanta$ed en and (oen o+ t%#s etro '#ty2" Sunder S#n$% a&&roa'%ed t%e

o++#'e and started sell#n$ t%e ne(s&a&er" He d#d not a!e a lot o+ oney, .ut (as $ood at

sav#n$ #t" He started sav#n$ oney +or a (ar /a'!et +or ne3t (#nter"

He (as reasona.ly %a&&y %e %ad oney to .uy +ood, and no lon$er %oeless and

s%ared a roo (#t% t(o ot%ers" One day, (#t% %#s sav#n$s %e .ou$%t a &a#r o+ se'ond-%and N#!e

s%oes +ro +lea ar!et"

Sunder S#n$% #s not un#ue aon$ lo(-#n'oe 'onsuers, es&e'#ally #n lar$e '#t#es, #n

(ant#n$ and .uy#n$ N#!e s%oes" Soe e3&erts .el#eve t%at lo(-#n'oe 'onsuers too (ant t%e

sae &rodu'ts and serv#'e t%at ot%er 'onsuers (ant"

T%e (or!#n$ &oor are +or'ed to s&end a d#s&ro&ort#onate &er'ent o+ t%e#r #n'oe on

+ood, %ous#n$, ut#l#t#es, and %ealt%'are" T%ey solely rely on &u.l#' trans&ortat#on, s&end very

l#ttle on enterta#nent o+ any !#nd, and %ave no se'ur#ty o+ any !#nd" T%e#r +#$%t #s a#nly day-

to-day surv#val"

5UESTIONS

6" 7%at does t%e &ur'%ase o+ a &rodu't l#!e N#!e ean to Sunder S#n$%8

*" 7%at does t%e story say a.out our so'#ety and t%e #&a't o+ ar!et#n$ on 'onsuer

.e%av#or8

1





CASE II

9ey to uyers; M#nds

Consuer .uy#n$ resear'% %as turned a ne( lea+ #n Ind#a" T%e era o+ deo$ra&%#'s sees to .e

on t%e .a'!.en'%" No(, Mar!et#n$ <esear'% &eo&le are less l#!ely to +#rst as! you a.out your

a$e, #n'oe, and edu'at#on et'" Instead, t%ere #s a d#st#n't s%#+t to(ards #nu#r#es a.out

att#tudes, #nterests, l#+estyles, and .e%av#our - #n s%ort to(ards a study o+ 'onsuers; #nds

'alled &sy'%o$ra&%#'s"

=at%+#nders, t%e ar!et#n$ resear'% (#n$ o+ L#ntas, o''as#onally 'ae out (#t% #ts

%#$%ly res&e'ted >Study on Nat#on;s Att#tudes and =sy'%o$ra&%#'s 1=:SNA=2" T%e +#rst #n t%#s

ser#es (as released #n 6?@ (#t% an o./e't#ve to develo& a data.ase o+ l#+estyles and

&sy'%o$ra&%#'s #n+orat#on on t%e ode Ind#an (oen" T%e se'ond (as #n 6??), and t%e

t%#rd #n 6??@" =at%+#nders '%oose (oan +or t%e study .e'ause o+ t%e .el#e+ t%at ore o+ten

t%an not, #n ur.an areas, #t #s t%e (oan (%o a!es .uy#n$ de'#s#on"

T%e =at%+#nders; study #nvolves #nterv#e(#n$ over 6B,BBB (oen over t%e ent#re

'ountry and se$ent#n$ t%e #n 'lusters a''ord#n$ to t%e#r .el#e+s, att#tudes, l#+estyles, and

lastly t%e#r deo$ra&%#'s &ro+#le" T%e #dea #s to #dent#+y $rou&s o+ 'onsuers (#t% s##lar

l#+estyles (%o are l#!ely to .e%ave to(ards &rodu'ts or serv#'es"

For advert#sers and advert#s#n$ a$en'#es, t%#s &ro+#le %el&s enorously" For e3a&le,

an advert#ser ay (ant to $#ve a (estern#sed tou'% to a 'oer'#al" T%e &ro+#le o+ t%e tar$et

'ustoer, as revealed .y t%#s study, tells t%e advert#s#n$ &eo&le t%e &er#eter (#t%#n (%#'%

s%e%e ust stay, ot%er(#se t%e ad ay .e'oe an e3a$$erated vers#on o+ (estern#sed Ind#a"

For t%e &ur&ose o+ t%#s study, =at%+#nders d#v#ded t%e Ind#an (oen #n @ d#st#n't

'luster o+ vary#n$ values and l#+estyles" F#$ures +ro t(o stud#es are ava#la.le &u.l#'ly and are

$#ven .elo(:

Cluster 6?@ 12 6??) 12

Trou.led %oe.ody 6"? 6@")

T#$%t-+#sted trad#t#onal#st 64"@ 6B"B

Contended 'onservat#ve "B ?")

Ar'%ety&al &rov#der 6)"B @"@

An3#ous re.el 64"6 6"@

Conte&orary %ouse(#+e 6?"* **"6Gre$ar#ous %edon#st @" "

A++luent so&%#st#'ate ") ?"6

T%e stud#es see! to tra'! t%e a'ro level '%an$es and oveents (#t%#n t%ese @

'lusters #n a &er#od o+ t#e"

7e note +ro t%e ta.le t%at #n 6?@, @" o+ t%e (oen 'ould .e 'lass#+#ed as

>$re$ar#ous %edon#st> - t%ose (%o 'ons#der t%e#r o(n &leasure to .e su&ree #n l#+e" ;In 6??),

t%#s +#$ure +ell to "" T%e >trou.led %oe.ody> se$ent - t%ose (#t% lar$e +a#l#es and lo(-

#n'oe, #n'reased +ro 6"? #n 6?@ to 6@") #n 6??)"

2





In+orat#on, su'% as t%#s, #s o.v#ously use+ul to assess t%e 'olle't#ve ood" T%at;s (%y

=at%+#nders %ave an #&ress#ve l#st o+ 'l#ents +ort %e#r =:SNA=, (%#'% #n'ludes H#ndustan Lever,

Cad.ury, o%nson and o%nson, and G#llette"

SOME =SCHOG<A=HICS =<OFILES OF INDIAN 7OMEN

<aa Dev#, t%e Contended Conservat#ve

T%e lady l#ves a ;$ood; l#+e - s%e #s a devoted (#+e, a dott#n$ ot%er o+ t(o s'%ool-$o#n$ sons,

and a God +ear#n$ %ouse(#+e" S%e %as .een l#v#n$ %er l#+e .y t%e trad#t#onal values s%e '%er#s%es

- $ett#n$ u& at t%e 'ra'! o+ da(n, $ett#n$ t%e %ouse 'leaned u&, %av#n$ t%e .rea!+ast o+ ;Aloo

=arat%as; ready #n t#e .e+ore t%e '%#ldren;s s'%ool-.us %on!s #ts %orn, lay#n$ do(n t%e dress

%er ;$overnent servant; %us.and (#ll &ut on a+ter %#s .at%, and do#n$ %er da#ly one-%our =u/a"

S%e +asts every Monday +or t%e (el+are o+ %er +a#ly, loo!s at t%e ;+reely #3#n$; and ;se3ually

l#.eral; youn$sters (#t% dee& d#sda#n and 'annot understand t%e ode youn$ (oan; s

6?reed; +or oney, /e(ellery, and /o.s"

Her one a.#d#n$ #nterest outs#de t%e %ouse%old #s t%e Ganes% Mand#r t%at s%e %as

v#s#ted every 7ednesday, ever s#n'e s%e $ot arr#ed" S%e la'!s %#$%er edu'at#on and %en'e %as

l#ttle a&&re'#at#on +or t%e arts, t%e l#terature, and t%e s'#en'es" Her a&le s&are t#e #s s&ent

(at'%#n$ t%e T, (%#'% #s %er &r#e sour'e o+ enterta#nent and #n+orat#on"

S%o.%a, t%e Trou.led Hoe.ody

S%o.%a arr#ed youn$ to t%e +#rst &erson s%e +ell #n love (#t%, =ra!as%" Four '%#ldren 'ae

u#'!ly .e+ore s%e (as u#te ready to ra#se a +a#ly" No(, s%e #s un%a&&y" S%e

#s %av#n$ trou.le #n a!#n$ ends eet on %er %us.and;s salary (%o #s e&loyed as 'ler! #n a

&r#vate .us#ness and #s o+ten reu#red to (or! u& to late %ours" S%e #s +rustrated, as %er des#re

+or an #dyll#' l#+e %as turned sour" S%e 'ould not $et edu'at#on .eyond %#$% s'%ool and %en'e

t%ere are %ardly any /o. o&&ortun#t#es +or %er" Her %us.and also !ee&s on 'o&la#n#n$ o+ t%e

lon$ %ours o+ .a'!.rea!#n$ (or! %e %as to &ut #n" He 'onsues 'ountry-ade l#uor rout#nely"

S%o.%a +#nds es'a&e #n la'! and 7%#te T soa& o&eras and +#ls t%at trans&ort %er

#nto t%e (orld o+ %er dreas" S%e (at'%es T alost all t%rou$% t%e day and %er '%#ldren roa

around #n t%e lo'al#ty streets and 'annot e3&e't any %el& +ro t%e#r; ever-$ru.l#n$; ot%er"

=ur'%ases are ostly l##ted to ;essent#als; and any d#s'ret#onary &ur'%ases are &ost&oned t#ll

#t .e'oes &oss#.le"

Neeru, t%e Ar'%ety&al =rov#der

Neeru e&#to#ses s#&l#'#ty" Her l#+e #s untan$led" It runs on a set t#eta.le (#t% alost

'lo'!(or! &re'#s#on" S%e (or!s as a &r#ary s'%ool tea'%er #n a rural $overnent s'%ool a.out

B !#loeters +ro %er d#str#'t to(n res#den'e" S%e #s arr#ed to a so'#al (or!er #n an NGO

(%ose #n'oe #s errat#'" Her t%ree '%#ldren, t(o teena$ed sons and lB-year old dau$%ter are

$ett#n$ s'%ool edu'at#on"

T%e day .e$#ns (#t% t%e lady $ett#n$ u& .e+ore any.ody else and +#n#s%#n$ t%e

%ouse%old '%ores as +ast as s%e 'an" T%ere #s no roo +or delay as t%e State $overnent

;E3&ress; .us, on (%#'% s%e ravels to %er s'%ool (#ll .e at t%e .us sto& a'ross t%e road &re'#sely

at @"BB A"M" I+ s%e #sses t%at, t%e ne3t ord#nary .us 'oes at 66"6 A"M, u#te useless as #t

(#ll rea'% %er s'%ool only at 6"BB ="M" T%e s'%ool 'loses at *"BB ="M" T%ere are &r#vate ee&s

runn#n$ s&orad#'ally, .ut t%e +are #s %#$% and Neeru does not .el#eve #n (ast#n$ %ard earned

3





oney" es#des, s%e travels on %us.and;s ;+ree &ass;" Neeru &r#des %ersel+ on %er ont%ly

sav#n$s o+<s"6BBB +or t%e last any years" T%e oney (#ll $o to(ard t%e (edd#n$ o+ %er

dau$%ter"

andana, t%e t#$%t-+#sted trad#t#onal#st

For andana, sav#n$ oney #s ;#n-.orn; d#s'#&l#ne" 7%en s%e (as youn$ and unarr#ed, s%eree.ers %er ot%er (as e3treely t#$%t-+#sted and ran t%e %ouse%old #n under <s"@BB &er

ont%" It (as t%e ne'ess#ty o+ t%ose t#es as %er +at%er ret#red at a &r#n'ely salary o+ <s"6@BB

&er ont%" All t%rou$% %er '%#ld%ood, s%e sa( de&r#vat#on and %ards%#&" S%e (ould not /o#n t%e

annual 'lass &#'n#' #n %er s'%ool days as #t eant; avo#da.le e3&end#ture;"

No( s%e #s arr#ed and ot%er o+ t(o s'%ool $o#n$ '%#ldren" T%e %us.and (or!s #n a

.an! as a 'ler!" He %as ta!en all t%e loans t%at %e 'ould +ro t%e .an! and #nvested t%e oney

#n real estate" As a result o+ ont%ly dedu't#ons to(ard re&ayent o+ loans, %#s ta!e %oe

salary #s no( very l#ttle" ut andana 'an ana$e" T%e s'%ool dresses are se(n .y %er at

%oe, t%e stat#onary reu#red 'oes +ro a (%olesale ar!et, and t%e .oo!s are se'ond-%and

+ro ;+r#ends;, 'ult#vated +or t%e &ur&ose" On .#rt%days, andana &re&ares a s(eet d#s% at %oe

and t%ey s&end on a +#l" T%ere #s a 'o( and 'al+ at %oe, .e#n$ !e&t as a sour'e o+ revenue

and #l!" S%e sells %al+ t%e #l! to a ne#$%.our and t%e +a#ly 'onsues t%e rest" L#+e #n

$eneral #s %ard and +ru$al" T%ere #s a 'olour T at %oe, .ut t%ey d#s'onne'ted t%e 'a.le

'onne't#on ever s#n'e t%e rates (ent u&" No( t%ey (at'% Doordars%an only"

Ad#t#, t%e An3#ous <e.el

Dau$%ter o+ a Freedo F#$%ter, Ad#t# %as al(ays +ou$%t %er values and &r#n'#&les"

=eo&le st#ll ree.er (%en s%e (al!ed out o+ t%e e3a %al+ #n a %u++ as a ar! o+ &rotest

a$a#nst ass '%eat#n$; san't#oned; .y t%e 'entre su&er#ntendent #n a tou$% &a&er" 7%#le every

.ody else &assed (#t% %#$% ar!s, Ad#t# +a#led"

Even t%ou$% s%e re&eated t%e &a&er, Ad#t# never learned to s(# alon$ t%e +lo(" S%e

al(ays s(a a$a#nst t%e 'urrent" S%e /o#ned t%e Coun#st =arty #n %er 'olle$e and $ave

rous#n$ s&ee'%es a$a#nst t%e tea'%ers and aut%or#t#es" T%#s resulted #n %er $ett#n$ very &oor

ar!s and le+t %er /o.less"

Later, Ad#t# /o#ned an NGO and no( (or!s on so'#al #ssues" S%e says s%e #s a 'reature o+

t%e #nd, not ater#al#s" Her +avour#te dress #s a lon$ +lo(#n$ 9urta, and sla'!s" S%e (ears

loosened %a#r and '%a&&als" S%e reads vora'#ously" F#nan'#ally, s%e #s #nde&endent and l#ves

(#t% %er &arents" Her d#sda#n +or t%e #nst#tut#on o+ arr#a$e and 'onte&t +or t%e odern

Ind#an ale !ee& %er s#n$le and unatta'%ed" S%e (#ll 'ont#nue-to .e so as s%e &re+ers t%#s

status, .ut ay ado&t a .a.y later #n l#+e"

<eea, t%e Gre$ar#ous Hedon#st

ust 6?, and <eea #s already d#vor'ed" Her +at%er #s a (ealt%y .us#nessan" Dur#n$ <eea;s

'%#ld%ood, %er +at%er (as ostly a(ay #n Du.a# and A+r#'a, try#n$ to aass a +ortune" T%at %e

d#d .ut %e lost on %#s '%an'e to .e a $ood +at%er" ot% %#s '%#ldren started +eel#n$ l#!e; or&%ans;

a+ter t%e#r ot%er $ot #nvolved (#t% anot%er an"

<eea (as ever lon$#n$ +or %er +a#ly (%en alone 'ae Hars%, %er &r#vate %#$% s'%ooltu#t#on tea'%er" Hars% (as all o+ ** and very 'ar#n$" He (as tall, %andsoe, and very &o&ular #n

4





s'%ool and any $#rls %ad a 'rus% on %#" <eea (as s#3teen t%en and a $reat +an o+ Hars%"

For %er, Hars% (as a &r#0e 'at'% as %e 'o.#ned t%e lov#n$ ual#t#es o+ a +at%er (#t% a #3 o+

.e#n$ a $ood tea'%er" S%e (as soon da00led and surrendered #n a &%ys#'al relat#ons%#&"

Marr#a$e +ollo(ed" S%e never understood %o( Hars% '%an$ed overn#$%t +ro a 'ar#n$

+at%er +#$ure to a deand#n$ %us.and" And s%e 'ould never 'o&e (#t% t%e s#3 %ours s%e %ad to

s&end #n t%e !#t'%en everyday" 7%y s%ould s%e do t%e 'oo!#n$, s%e as!ed Hars%, as #t (as

soet%#n$ t%at t%e ;Ayas; d#d8 T%e real#ty o+ a %udru #ddle-'lass e3#sten'e %#t %er %ard

and s%e soon (al!ed out o+ ;t%e %ell;"

Her +at%er understood %er need to re'over and ade %er allo(an'e rat%er $enerous" He

.ou$%t %er a <ed S&orts Car and $ot %er an ad#ss#on #n a &r#vate 'olle$e"

Colle$e #s enterta#nent +or %er" S%e attends 'olle$e only on days (%en t%ere #s soe

+un't#on l#!e a 'ultural even#n$ or t%e s&orts eet" No(, <eea s&ends on al'o%ol, dresses,

&art#es, and %ol#days" S%e 'onsues a ood elevat#n$ dru$ every even#n$ and !ee&s send#n$

SMS essa$es on %er o.#le to %er +r#ends all t%rou$% t%e n#$%t" For %er, l#+e eans ;.uy#n$

&leasure endlessly;"

S%rut#, t%e Conte&orary House(#+e

S%rut# #s an ur.ane (oan" S%e #s (ell edu'ated and $enteel" S%e #s an o++#'er #n a nat#onal

.an!, and a't#ve #n %er 'lu. a++a#rs and 'oun#ty a't#v#t#es" So'#al#s#n$ #s an #&ortant &art o+

%er l#+e" S%e #s a doer, #nterested #n (at'%#n$ 'r#'!et, &ol#t#'s, and 'urrent a++a#rs" Her l#+e #s

%e't#' as s%e %as a lot to do +or %oe and o++#'e everyday" St#ll s%e o+ten en/oys v#e(#n$ ov#es

on T every (ee!"

S%rut# s%o&s +or Sarees, /e(ellery, and 'oset#'s +or %ersel+ on a re$ular .as#s"

Ho(ever, +a#ly needs 'oe .e+ore %er o(n needs" Her %oe #s a dou.le #n'oe %ouse%old

and s%e %as one !#d" All t%e odern $ad$ets are &resent and t%e standard o+ l#v#n$ #s u&&er

#ddle-'lass"

Moeeta, t%e A++luent So&%#st#'ate

Moeeta (as .orn Mata, .ut elevated %ersel+ to Moeeta a+ter arr#a$e to a .us#ness

ty'oon" Moeeta #s an ele$ant (oan (#t% style" S%e l#ves #n Mu.a# .e'ause t%at #s (%ere

s%e (ants to .e" S%e l#!es t%e e'ono#' and so'#al as&e'ts o+ .#$ '#ty l#v#n$ and ta!es

advanta$e o+ %er; 'onta'ts;" S%e %as .u#lt u& +r#ends%#& and 'ult#vated t%e '#ty .#$(#$s .y

#nv#t#n$ t%e to t%e nuerous &art#es s%e t%ro(s #n %er lu3ur#ous &ent%ouse"

Moeeta #s a sel+-'on+#dent, on-t%e-$o (oan, and not a %oe.ody" S%e #s +as%#on

'ons'#ous and 'lot%es %ersel+ #n t%e latest des#$ner dresses" Even at 4B, s%e 'an 'arry o++ a #n#

(#t% a&lo." S%e #s +#nan'#al very se'ure and %en'e does not s%o& (#t% 'are" S%e s%o&s +or

ual#ty, e3'lus#v#ty, and t%e .rand nae, not t%e &r#'e" S%e +reuently travels a.road, .uys

e3&ens#ve $#+ts +or +r#ends, and %as an #nternat#onal understand#n$ on (%at #s >'%#'> at t%e

oent"

5





6





T%ree &sy'%o$ra&%#'s &ro+#les o+ Ind#an (oen and t%e#r +ood s%o&&#n$ %a.#ts:

Ty&e I Ty&e II Ty&e III

Money 'ons'#ous Care+ul s%o&&er Gouretsat#s+a't#on

Food s%o&&#n$ #s done on

ne'ess#ty and #s &ost&oned as

lon$ as &oss#.le"

Ma!es out s%o&&#n$ l#sts and

a!es (ee!ly ont%ly

&ur'%ases"

General l#!#n$ +or +ood

s%o&&#n$ and +ood related

a't#v#t#es"

M#n#u aount o+ oney

s&ent" T%#s #s ena.led t%rou$%

'o&arat#ve evaluat#on o+

any s%o&s, even #+ #t ta!es

ore t#e"

Can &ur'%ase lar$er

uant#t#es #+ t%ere #s an

#n'ent#ve l#!e lo(er &r#'es or

a $#+t s'%ee" Food .ud$et #s

+le3#.le"

Colle'ts and +#les +ood re'#&es"

E3&er#ents (#t% ne( +ood

&rodu'ts and et%ods o+

'oo!#n$" L#!es to e3%#.#t %er

'ul#nary s!#lls to %er +r#ends

and +a#ly"

O&erates (#t%#n t%e +ood

.ud$et" Does not .uy lar$er

uant#t#es to save oney"

C%e'!s la.ell#n$ +or &r#'e,

nutr#t#on and e3&#ry date

#n+orat#on

S&ends a lot o+ t#e #n !#t'%en

as &re&ar#n$ +ood #s an

en/oya.le a't#v#ty"

=r#'e and #ed#ate out+lo(

o+ 'as% #s t%e do#nant

&ur'%ase 'on'ern"

Goes +or tr#ed and trusted

.rands even #+ t%ey 'ost a

l#ttle ore" T%#s #s an

#&ortant &ur'%ase 'on'ern"

Food #tes are .ou$%t e#t%er

.ased on t%e &ast sat#s+a't#on

+ro t%e or +or t%e#r novelty

value" Un!no(n +ood #tes

are &ur'%ased #+ t%ey e3'#tet%e senses" T%#s #s t%e

do#nant &ur'%ase 'on'ern"

7%o +#ts #n (%ere8

S%o.%a, Neeru, and andana, S%rut#, Ad#t#, and

<aa Dev#

Moeeta 1s%e #s a +ood lover2"

1=ro+ Dee&a! 9%anna, 'ollea$ue, %as develo&ed t%ese &ro+#les .ased on %#s &er'e&t#ons o+

'erta#n &ersonal#ty ty&es2"

5UESTIONS

6" E3&la#n %o( t%e a.ove-ent#oned #n+orat#on #s l#!ely to .ene+#t a ar!eter8

*" 7%#'% o+ t%e a.ove ent#oned ty&es are l#!ely to res&ond to sales &root#on8 E3&la#n"

)" A anu+a'turer o+ &ersonal 'are &rodu'ts #n t%e &re#u se$ent starts +reuent sales

&root#ons" 7%at #s l#!ely to .e t%e #&a't on t%e a.ove-ent#oned ty&es8

7





Case III

Star A#r(ays

Star A#r(ays o++ered &assen$ers a#r serv#'es (#t%#n t%e 'ountry and served a terr#tory o+ 6@,

BBB s" #les (#t% an e3&and#n$ &o&ulat#on o+ over B la!% o+ &eo&le (%o are &otent#al users o+

t%e a#rl#ne serv#'es" T%e $eo$ra&%#' d#vers#ty and s'attered .us#ness and 'oer'#al '#t#es

%ave led to steady #n'rease #n t%e nu.er o+ &eo&le (%o use a#r travel" T%e 'l#entele #n'ludes

.us#ness &eo&le, as (ell as #nd#v#duals on non-.us#ness tr#&s, %ol#days, and le#sure tr#&s et'" As

a result, t%e &assen$er tra++#' %ad .een #n'reas#n$ stead#ly s#n'e t%e +#r started o&erat#ons #n

6?@)" In t%e last t%ree years, %o(ever, t%e $ro(t% %as not .een 'ons#stent (#t% t%e $ro(t%

&attern s%o(ed .y t%e 'o&any #n t%e last +#+teen years - as a$a#nst a %ealt%y $ro(t% o+ 6) &er

'ent, t%e sales %ave ar$#nally #&roved, re$#ster#n$ a $ro(t% o+ &er 'ent"

T%e 'o&any;s early su''ess (as due to t%e &#oneer#n$ 'on'e&ts used .y #t #n t%e

a#rl#ne #ndustry, (%#'% (as do#nated .y lar$e &r#vate and $overnent o&erators (#t% l#ttle

ar!et or#entat#on" T%e laun'% o+ t%e 'o&any;s serv#'es 'o#n'#ded (#t% a .oo #n t%e av#at#on

se'tor and redu'ed $overnent do#nan'e, (%#'% o&ened u& t%e s!#es +or &r#vate o&erators"

es#des t%#s, t%e 'o&any o++ered a %ost o+ #nnovat#ons #n t%e 'ustoer serv#'e +un't#ons su'%

as saller and ne(er &lanes, 'onven#ent s'%edules, +ree $#+ts, 'o+orta.le seats, e3'lus#ve

ter#nals, e3&ress .a$$a$e-'%e'!, and a#r&ort-to %otel trans#t +or #ts +#rst and .us#ness 'lass

'l#ents" In turn t%e +ares '%ar$ed .y t%e 'o&any (ere &re#u #n t%e 'ate$ory and alost 6

&er 'ent %#$%er t%an t%e #ndustry avera$e" T%e 'o&any &res#dent #n t%e +ollo(#n$ (ords

/ust#+#ed t%#s ove: ;;7e are sell#n$ ent#rely on t%e .as#s o+ &rov#d#n$ ual#ty e3&er#en'e to our

'l#ents" Our serv#'es, a.#en'e, and 'o#tent to sa+ety and t#e-.ound s'%edule, allsur&ass t%e standards o+ t%e #ndustry">

Dur#n$ t%e +#rst ten years o+ o&erat#ons t%e 'o&any +a'ed no d#re't 'o&et#t#on" T%e

only &ro.les +a'ed .y t%e ar!et#n$ sta++ (ere 1a2 t%e &r#'e, 1*2 t%e need to 'onv#n'e 'l#ents

t%at a#r serv#'e (as ore e++#'#ent t%an ot%er alternat#ves, 1'2 #dent#+y#n$ t%e 'ustoers, and

ore #&ortantly 1d2 develo&#n$ t%e #a$e o+ a de&enda.le serv#'e" T%e 'onsuers, (%o t#ll

no( (ere +or'ed to &ut u& #nd#++erent serv#'e o++ered .y lar$e $overnent o&erators, d#d not

o++er u'% res#stan'e and (ere a$reea.le to try out ne( 'o&any" On'e 'ustoers (ere

'onv#n'ed, reta#n#n$ t%e (as very easy" Hen'e t%e 'o&any en/oyed #ense

loyalty +ro #ts 'l#ents (#t% alost 4B &er 'ent o+ t%e .e#n$ re$ular users" Sales (ere %andled

.y t%e sales d#v#s#on as (ell as .y soe #nde&endent sales re&resentat#ves"

In early 6??Bs t%e 'o&any +a'ed d#re't 'o&et#t#on +or t%e +#rst t#e (#t% a ne(

'o&any 'o#n$ u& (#t% saller &lanes and all ot%er advanta$es (%#'% (ere &rev#ously

asso'#ated (#t% Star A#r(ays" T%e $ro(#n$ .us#ness %ad ade t%e ar!et very lu'rat#ve and

%en'e #n t%e ne3t t%ree years, +our a/or 'o&et#tors (ere also vy#n$ +or t%e ar!et s%are" T%e

'o&any slo(ly lost to t%ese 'o&et#tors and 'ould ana$e to reta#n only )B &er 'ent o+

ar!et s%are .y t%e end o+ 6??4" All t%e 'o&et#tors (ere en$a$ed #n a$$ress#ve &root#on

and soon started a ;&r#'e (ar; #n order to outdo one anot%er" For t%e ne3t s#3 ont%s, ea'% o+

t%e o++ered .#$ d#s'ounts and $#+ts 1su'% as T aud#o systes2 (#t% t%e return t#'!et on

d#++erent routes" T%e ost &ro+#ta.le and 'oer'#a6ly v#a.le routes (ere t%e a/or tar$ets o+

8





t%ese &r#'e related 'o&et#t#ons" T%e 'onsuer (as t%e ult#ate .ene+#'#ary and #n s%ort t#e,

t%e 'o&an#es started +a'#n$ losses due to t%#s &r#'e-'utt#n$"

Star A#r(ays %ad so +ar rea#ned out o+ t%#s J&r#'e-(arK and lost #ts ar!et s%are on t%e

'o&et#t#ve routes very ra&#dly" It (as a.le to reta#n t%e 'l#ents on ot%er routes, (%#'% (ere

not a &art o+ t%#s #ntense 'o&et#t#on" Un%a&&y an an3#ous a.out t%#s state o+ a++a#rs, t%e

'o&any v#'e &res#dent, ar!et#n$, develo&ed a ar!et#n$ &lan (#t% several 'o&onents" T%e

#n#t#al &art o+ t%e &lan 'ons#sted o+ a ar!et resear'% done on a 'ross-se't#on o+ e3#st#n$ 'l#ents

as (ell as t%e 'l#ents o+ 'o&et#tors and t%e +ollo(#n$ o.servat#ons (ere ade :

• Star A#r(ays (as 'ons#dered a ual#ty-or#ented 'o&any .ut any +elt t%at #t (as

$ett#n$ stod$y"

• T%e sat#s+a't#on (#t% 're( and s'%edules %ad de'l#ned over t%e last years aon$st

re$ular 'ustoers"

• T%e 'l#ents +elt t%at t%e a#rl#ne (as los#n$ #ts ed$e over 'ustoer serv#'e .e'ause #t (as

non+le3#.le"

• T%e &r#'es o++ered .y 'o&et#tors are less and t%ey &rov#de only a +ra't#on o+ serv#'es

o++ered .y Star A#r(ays" T%#s (as t%e a#n reason o+ 'l#ents s(#t'%#n$ over to

'o&et#tors" As any as B &er 'ent res&ondents 'ons#dered t%e 'osts as t%e ost

#&ortant +a'tor #n de'#d#n$ on t%e a#rl#ne"

• Soe de'#d#n$ +a'tors and t%e#r relat#ve #&ortan'e to 'l#ents (ere +ound to .e +ollo(#n$

t%#s &attern"

•

Feature o++ered .y a#rl#neI&ortan'e o+ +eature as t%e

de'#d#n$ +a'tor

<an! o+ +eature #n de'#s#on a!#n$

#n+luen'e

=r#'e 6

A.#en'e and +ood ? )

=un'tual#ty 64 *

Serv#'es 'onven#en'e 4

Free $#+ts et'" )

T%e se'ond &%ase o+ t%e &lan #n'luded a ass#ve advert#s#n$ and &root#on &lan" T%e

= ar!et#n$, An#l Sa3ena, +elt t%at t%e 'o&any needed to advert#se #t;s ded#'at#on to ual#ty

and re.u#ld an #a$e o+ .e#n$ a 'ustoer-or#ented a#rl#ne" He .e$an d#s'uss#ons (#t% t%e

advert#s#n$ a$en'y to laun'% a 'a&a#$n #n t%e near +uture"

A+ter a ont%, t%e a$en'y 'ae out (#t% t%e +ollo(#n$ re'oendat#ons:

• T%e 'a&a#$n #s to .e 'o&leted #n +our ont%s t#e and t%e .ud$et (#ll .e )6a!%"

• T%e 'o&any (ould rea'% @ o+ tar$et aud#en'e, on'e #n a ont% .y d#re't a#l"

• Four t#es a ont% a T 'oer'#al (#ll .e a#red on a .us#ness s%o( t#e" T%e aud#en'e

T<= #s 'ons#stent and %#$%est #n t%#s 'ate$ory o+ s%o(s"

9





• Star A#r(ays (ould .u#ld t%e 'a&a#$n t%ee around ;ual#ty and 'ustoer serv#'e

#n#t#at#ves; "

• T%e d#re't a#l letter (ould .e sent to a data.ase o+ @,BBB 'l#ents #n +our ont%s" T%e

letter (#ll 'onta#n #n+orat#on on t%e a#rl#ne and a$a#n stress on t%e sae t%ee o+;

ual#ty and 'ustoer serv#'e;"

10





5UESTIONS

1. 7%at #s l#!ely to .e t%e de'#s#on &ro'ess #n 'ase o+ '%oos#n$ an a#rl#ne8

2. 7ould t%#s &lan su$$ested .y t%e v#'e &res#dent %el& #n 'onv#n'#n$ t%e 'ustoers to use

Star A#r(ays8 G#ve your reasons"

11





Case I

Mouse-<#d

One %ot May orn#n$, S%o.%a, $eneral ana$er o+ Innotra& Ind#a Ltd", entered %er o++#'e #n

Del%#" S%e &aused +or a oent to 'onte&late t%e uote, (%#'% s%e %ad +raed and %un$ on a

(all +a'#n$ %er ta.le"

>I+ a an 'an a!e a .etter ousetra& t%an %#s ne#$%.our, t%e (orld (#ll a!e a

.eaten &at% to %#s door"> S%e va$uely re'alled t%at &ro.a.ly #t (as <al&% 7aldo Eerson (%o

sa#d t%#s" =er%a&s, s%e (ondered, Eerson !ne( soet%#n$ t%at s%e d#dn;t" S%e %ad t%e .etter

ousetra& - Mouse-<#d - .ut t%e (orld d#dn;t see all t%at e3'#ted a.out #t"

S%o.%a %ad /ust returned +ro a Trade Fa#r #n 9ol!ata" Stand#n$ #n t%e trade s%o(

d#s&lay .oot% +or lon$ %ours and ans(er#n$ t%e sae uest#ons %undreds o+ t#es %ad .een

t#r#n$" et, t%#s s%o( %ad e3'#ted %er" T%e Trade Fa#r o++#'#als %eld a 'ontest to sele't t%e .est

ne( &rodu't #ntrodu'ed at t%e s%o(" O+ t%e ore t%an 6B ne( &rodu'ts, %er ousetra& %ad

(on +#rst &la'e" T(o (oen;s a$a0#nes %ad (r#tten sall art#'les a.out t%#s #nnovat#ve

ousetra&, %o(ever, t%e e3&e'ted deand +or t%e tra& %ad not ater#al#sed" S%o.%a %o&ed

t%at t%#s a(ard #$%t st#ulate #n'reased #nterest and sales"

A $rou& o+ #nvestors (%o %ad o.ta#ned r#$%ts to ar!et t%#s #nnovat#ve ousetra& #n

Ind#a %ad +ored Innotra& Ind#a #n anuary *BB6" In return +or ar!et#n$ r#$%ts, t%e $rou&

a$reed to &ay t%e #nventor and &atent %older, a ret#red en$#neer, a royalty +ee +or ea'% tra&

sold" T%e $rou& t%en a&&o#nted S%o.%a as t%e $eneral ana$er to develo& and ana$e

Innotra& Ind#a Ltd"

T%e Mouse-<#d, a s#&le yet 'lever dev#'e, #s anu+a'tured .y a &last#'s +#r under

'ontra't (#t% Innotra& Ind#a Ltd" It 'ons#sts o+ a suare, &last#' tu.e easur#n$ a.out #n'%es

lon$ and one and one-%al+ #n'%es- suare" T%e tu.e .ends #n t%e #ddle at a )B-de$ree an$le,

so t%at (%en t%e +ront &art o+ t%e tu.e rests on a +lat sur+a'e, t%e ot%er end #s elevated" T%e

elevated end %olds a reova.le 'a& #nto (%#'% t%e user &la'es .a#t 1&#e'e o+ .read, or soe

ot%er t#t.#t2" A %#n$ed door #s atta'%ed to t%e +ront endo+t%e tu.e" 7%en t%e tra& #s >o&en>, t%#s

door rests on t(o narro( >st#lls> atta'%ed to t%e t(o .otto 'orners o+ t%e door"

T%e tra& (or!s (#t% s#&le e++#'#en'y" A ouse, sell#n$ t%e .a#t enters t%e tu.e

t%rou$% t%e o&en end" As #t oves u& t%e an$led .otto to(ard t%e .a#t, #ts (e#$%t a!es t%e

elevated end o+ t%e tra& dro& do(n(ard" T%#s elevates t%e o&en end, allo(#n$ t%e %#n$ed door

to s(#n$ 'losed, tra&&#n$ t%e ouse" Sall teet% on t%e ends o+ st#lls 'at'% #n a $roove on t%e

.otto o+ t%e tra&, lo'!#n$ t%e door 'losed" T%e ouse 'an .e d#s&osed o+ l#ve, or #t 'an .e le+t

alone +or a +e( %ours to su++o'ate #n t%e tra&"

S%o.%a +elt t%e tra& %ad any advanta$es +or t%e 'onsuer (%en 'o&ared (#t%

trad#t#onal s&r#n$-loaded tra&s or &o#sons" Consuers 'an use #t sa+ely and eas#ly (#t% no r#s!

+or 'at'%#n$ t%e#r +#n$ers (%#le load#n$" It &oses no #n/ury or &o#son#n$ t%reat to '%#ldren or

&ets"

12





S%o.%a;s &ersonal and #n+oral #nu#r#es (#t% a'ua#ntan'es and +r#ends su$$ested

t%at (oen are t%e .est tar$et ar!et +or t%e Mouse-<#d" Most (oen stay at %oe and ta!e

'are o+ %ouse%old '%ores and t%e#r '%#ldren" T%us, t%ey (ant a eans o+ deal#n$ (#t% t%e

ouse &ro.le t%at avo#ds any !#nd o+ r#s!s" To rea'% t%#s ar!et,

S%o.%a de'#ded to d#str#.ute Mouse-<#d t%rou$% $ro'ery stores, and !#t'%en(are

stores" S%e &ersonally 'onta'ted a su&erar!et and soe de&artental stores to &ersuade

t%e to 'arry t%e &rodu't, .ut t%ey re+used say#n$ t%at t%ey d#d not sell su'% 'ontra&t#ons" S%e

avo#ded any (%olesalers and ot%er #ddleen"

T%e tra&s (ere &a'!a$ed #n a s#&le 'ard.oard, (#t% a su$$ested reta#l &r#'e o+<s"6B

+or a &#e'e" Alt%ou$% t%#s &r#'e ade Mouse-<#d a.out +#ve 6B s#3 t#es ore e3&ens#ve t%an

standard tra&s, t%ose (%o .ou$%t #t s%o(ed l#ttle &r#'e res#stan'e"

To &roote t%e &rodu't, S%o.%a %ad .ud$eted a&&ro3#ately <s" )BB,BBB to(ard

advert#s#n$ #n d#++erent (oen;s a$a0#nes, su'% as Gra% S%o.%a, and Good House!ee&#n$"

S%o.%a (as t%e 'o&any;s only sales&erson, .ut &laned to e&loy sales &eo&le soon"

S%o.%a %ad +ore'asted Mouse-<#d;s +#rst year sales at * #ll#on un#ts" T%rou$% Ar#l,

%o(ever, t%e 'o&any %ad sold only +e( t%ousand un#ts" S%e (ondered #+ ost ne( &rodu'ts

$ot to su'% slo( start, or #+ s%e (as do#n$ soet%#n$ (ron$"

S%o.%a !ne( t%at t%e #nvestor $rou& .el#eved t%at Innotra& Ind#a Ltd" %ad a >on'e-#n-

a l#+et#e '%an'e> (#t% #ts #nnovat#ve ousetra&" S%e sensed t%e $rou&;s #&at#en'e" To !ee&

t%e #nvestors %a&&y, t%e 'o&any needed to sell enou$% tra&s to 'over 'osts and a!e a &ro+#t"

5UESTIONS

1. Has S%o.%a #dent#+#ed t%e .est tar$et ar!et +or Mouse-<#d8 7%y or (%y not8

2. Does S%o.%a %ave enou$% needed data on 'onsuer .e%av#our8 7%at ty&e o+ 'onsuer

resear'% s%ould S%o.%a 'ondu't8

3. 7%at ty&e o+ advert#s#n$ 'an #n+luen'e 'onsuers +or t%#s ty&e o+ &rodu't8

13





Case

Golden Glo( Soa&

An#l Ma%a/an a.sent -#ndedly ran %#s +#n$er over t%e 'a!e o+ soa& .e+ore %#" He tra'ed t%e

nae ;Golden Glo(; e.ossed on t%e soa& as %e #n%aled #ts un#sta!a.le sesae +ra$ran'e" It

(as a sall soa&, alost l#!e a .ar o+ $old" T%ere (ere no +r#lls, no 'oloured &a'!a$#n$, and no

+an'y s%a&e" ust a $olden $lo( and t%e +ra$ran'e o+ sesae and Lu'#da +ont t%at u#etly

stated; Golden Glo(;"

Ma%a/an s#led (anly and 'las&ed t%e soa& #n %#s %ands, as #+ &rote't#n$ #t +ro an

unseen &redator" He (as (onder#n$ (#t% u#et 'on'ern #+ t%e )B-year-old .rand (ould last

lon$" Sens# Ind#a, (%ere Ma%a/an (as ar!et#n$ ana$er, (as ta!#n$ a lon$, %ard loo! at t%e

soa&, as #t (as &rov#n$ to .e a stra#n on resour'es"

T%ere (ere vary#n$ stor#es a.out %o( Golden Glo( (as laun'%ed" Soe sa#d t%e .rand

(as a ;$#+t; +ro t%e de&art#n$ En$l#s% &arent 'o&any" Ot%ers 'la#ed t%at #t (as 'reated +or

t%e t%en '%a#ran;s r#t#s% (#+e, as t%e Ind#an 'l#ate d#d not a$ree (#t% %er s!#n" T%ey also

'la#ed t%at t%e lady also 'o#ned t%e 'o&y >T%e %onest soa& t%at loves your s!#n> (as also

'o#ned .y t%e lady" T%e l#ne %ad stu'! t%rou$% t%ree de'ades" Only t%e v#suals %ad '%an$ed,

(#t% ne(er odels re&la'#n$ t%e older ones"

en# (as .as#'ally a s&e'#al#ty &rodu'ts 'o&any &rodu'#n$ %ouse%old %y$#ene,

+a.r#'are, and dental 'are &rodu'ts" Golden Glo( (as t%e only soa& #n #ts &rodu't #3,

&rodu'ed and ar!eted .y Sens#" Its rel#a.le ual#ty and value del#very %ad earned #t a lot o+

res&e't #n t%e ar!et" Golden Glo( eu#ty (as su'% t%at Sens# (as !no(n as t%e Golden Glo(Co&any" Indeed, t%e .rand nae Golden Glo( denoted &ur#ty, rel#a.#l#ty, and $entle s!#n'are"

In 6??4, Sens# U9 #n'reased #ts sta!e #n t%e Ind#an su.s#d#ary to 6" 7#t%#n ont%s,

all o+ Sens#;s &rodu'ts (ere $#ven a +a'el#+t, t%an!s to t%e #n+lo( o+ +ore#$n 'a&#tal" Ne(

&a'!a$#n$, ne( +ra$ran'es, ne( +orulat#ons and ore var#ants (ere #ntrodu'ed"

Only Golden Glo( (as le+t untou'%ed" For, alt%ou$% #t %ad a $ro(#n$ s!#n'are .us#ness

+ollo(#n$ soe strate$#' a'u#s#t#ons #n Euro&e #n t%e early e#$%t#es, Sens# U9 (as not a soa&

'o&any" T%e U9 ar!et#n$ tea ran an aud#t o+ every .rand and &rodu't #n t%e 'o&any;s

&ort+ol#o" ut (%en #t 'ae to Golden Glo(, #t +altered" >7e don;t !no( t%#s one,> o++#'#als at

t%e &arent 'o&any sa#d"

>7e don;t (ant t%#s one to .e tou'%ed,> Ma%a/an %ad sa#d &rote't#vely, a sent#ent

tl#at (as endorsed .y t%e ana$#n$ d#re'tor, <a/an S%ara" >Golden Glo( #s too sa'red, (e (#ll

leave #t as #t #s,> %e sa#d"

ut t%e U9 ar!et#n$ tea (as 'on+ounded" 7%at (as a lone soa& do#n$ #n t%e #dst

o+ to#let 'leaners and +a.r#' &rote'tors t%ey (ondered, %o(ever t%ey soe%o( a$reed t%at

14





t%e#r &ro&osed reva& strate$y (ould only loo! at u&-$radat#on, not t#n!er#n$ (#t% (%at

(asn;t .ro!en"

Indeed, +or )B lon$ years no one %ad ta&ered (#t% t%e Golden Glo( .rand" And

Ma%a/an +elt t%ere (as no reason to start no(" Golden Glo(, #n %#s v#e(, (as a sel+-susta#n#n$

.rand" T%at (as a .#t o+ an understateent .e'ause advert#s#n$ +or t%e .rand (as oderate

and Sens# Ind#a %ad never used any &root#onal $##'! +or #t"

No(, a+ter +our years o+ nurtur#n$ t%e ot%er 'ate$or#es, Sens# U9 %ad de'#ded to laun'%

#ts #o ran$e o+ s!#n'are &rodu'ts #n Ind#a" ut Golden Glo(;s &resen'e and &ro+#le (as a a/or

road.lo'! to #o;s su''ess" >It (#ll 'reate d#ssonan'e, 'on+use our s!#n'are eu#ty and deter t%e

art#'ulat#on o+ #o;s 'redo" It (#ll stand out as a $enet#' +la(,> ar$ued t%e U9 ar!et#n$ %ead"

>ou need to do a ret%#n! on Golden Glo(">

Ma%a/an &rotested" >7%y8 It %as su'% a stron$ eu#ty and loyal +ollo(#n$" So u'% %as

.een #nvested #n #t all t%ese years" 7%y $#ve u& all t%at8>

<a/an, %o(ever, %ad anot%er #dea" >Let us t%en e3tend t%e Golden Glo( .rand"> He sa#d

It (as t%e s#&lest solut#on" Co&an#es (ere no( #nvest#n$ %eav#ly #n 'reat#n$ ne( eu#t#es +or

t%e#r .rands" ut #n Golden Glo(;s 'ase, Sens# (as already s#tt#n$ on a .rand (#t% a terr#+#'

eu#ty" He +elt t%at e3tend#n$ t%#s eu#ty to ot%er 'ate$or#es, su'% as s!#n'are &rodu'ts (ould

.e su''ess+ul"

ut Golden Glo( needed a ne( &os#t#on#n$ .e+ore #t 'ould .e e3tended" T#ll a +e( yearsa$o, #t %ad .een #n &re#u 'ate$ory, &r#'ed at <s"6" T%en ne( .rands (#t% s&e'#+#'

&os#t#on#n$ and %#$%er &r#'e ta$s entered t%e ar!et" T%#s 'reated a level a.ove <s"6 soa&s

and &us%ed Golden Glo( do(n to t%e #d-&r#'ed ran$e" So Golden Glo(;s &r#'e (as not

'oensurate (#t% #ts &re#u &os#t#on and #a$e"

Over t%e years, Golden Glo( %ad .e'oe so sa'red t%at Sens# Ind#a %ad .een too

s'ared to do anyt%#n$ to #t" As a result, t%e soa& (as le+t (#t% n#'%e 'ate$ory o+ loyal users"

T%#s 'ate$ory ne#t%er s%ran! or #n'reased, /ust !e&t $ett#n$ older and older, and (#t% #t t%e

.rand also !e&t $ro(#n$ older" For e3a&le, (%en Ma%a/an;s (#+e %ad %er +#rst .a.y at *, %er

ot%er %ad re'oended Golden Glo( +or %er dry s!#n and also +or .a.y;s tender s!#n .e'ause

#t 'onta#ned sesae o#l" T%at (as #n 6??" Today, Ma%a/an;s dau$%ter %ad turned *6 and (as

.e#n$ (ooed .y Dove, Caay, even Santoor, and L#+e.uoy Gold, (#t% t%e#r a$$ress#ve

advert#s#n$" Golden Glo( %ad .e$un to lose #ts #a$e o+ .e#n$ 'onte&orary as ne(er .rands

'ae #n (#t% ne(er values"

Today, at 4, Ma%a/an;s (#+e st#ll used Golden Glo(, .ut (%en s%e re'oended

Golden Glo( to %er dau$%ter, s%e sa#d, >ut Golden Glo( #s a soa& +or ot%ers, +or older

&eo&le">

T%at (as a a/or &ro.le" T%e Golden Glo( .rand %ad a$ed, and Sens# Ind#a %adn;t

even .een a(are o+ #t" 7%#le #ts eu#ty %ad $ro(n (#t% #ts users, #ts &ersonal#ty %ad a$ed

'ons#dera.ly #n t%e last )B years" >I don;t t%#n! you 'an !ee& t%e &ersonal#ty youn$, unless you

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!ee& rene(#n$ t%e .rand" T%e o./e't#ve no( #s to (#den your eu#ty so t%at your #a$e

.e'oes youn$,> 'ont#nued <a/an" >For #nstan'e, #+ today you (ere to &erson#+y a Golden Glo(

user no(, #t (ould .e a (oan o+ 4 years us#n$ t%e sae .rand +or any years, (%o #s aver-

se to e3&er#ent#n$, very s!#n'are 'ons'#ous, very trust#n$, and very one-d#ens#onal" As you

'an see, t%#s #s not a very 'o&et#t#ve &ersonal#ty" T%ese are t%e stren$t%s o+ our Golden Glo(,

.ut t%ese are also #ts (ea!nesses,> %e analysed"

T%e 'onte3t %ad '%an$ed" Today, yout% deanded .rands t%at stood +or +reedo and

+earlessness" T%ey deanded .old .rands t%at dared to 'ure, not /ust &eserve" >=reservat#on #s

+or old &eo&le" T%ose are t%e attr#.utes .e#n$ &resented #n evolved ar!ets,> sa#d <a/an" To

a!e Golden Glo( 'onte&orary, t%e attr#.utes %ad to .e re-+raed, %e +elt" >ou 'an;t a!e a

youn$ .rand trust#n$ 'ar#n$, lov#n$, (#t%out add#n$ ot%er attr#.utes to #t" Today, yout% stands

+or +reedo, +or lau$%ter, +or +ran!ness, +or +ort%r#$%tness" T%at;s (%at Close U&, L#+e.uoy

Gold, at#!a, and ot%er .rands &ro&a$ate" So, e#t%er 'oe 'lean and say #t #s +or older s!#n

(%#'% needs trust and !#ndness, or re&os#t#on t%e .rand,> sa#d <a/an"

<e&os#t#on#n$ (as also ne'essary to address anot%er anoaly #n Golden Glo(;s #a$e:

#ts &er'e#ved &re#u" Sens# Ind#a %ad .een una.le to do anyt%#n$ a.out Golden Glo( sl#&&#n$

#nto t%e #d-&r#'e ran$e +ollo(#n$ t%e entry o+ ore e3&ens#ve .rands" No(, as <a/an ulled

over t%e .rand e3tens#on &lan, Ma%a/an +elt t%at Golden Glo(;s &re#u &os#t#on#n$ (as #ts'ore eu#ty and t%at %ad to .e a#nta#ned"

>I+ you are &re#u &r#'ed #n t%e 'onsuer;s #nd, your e3tens#ons are autoat#'ally

&er'e#ved as &re#u" So, #+ you don;t &resent t%e ot%er &rodu'ts as &re#u, t%e 'onsuer

(#ll not see t%e as e3tens#ons o+ t%e .rand,> %e sa#d" >For e3a&le, #+ you are to laun'% a

s%a&oo (%#'% #s &r#'ed lo(er t%an Suns#l!, .ut %#$%er t%an Nyle and Ayur, t%en (%atever t%e

rat#onale, t%e 'onsuer (#ll not a''e&t your &rodu't" >It #s not t%e Golden Glo( I !no(,> (#ll

.e t%e +eel#n$,> %e sa#d"

Ma%a/an +elt t%at s#n'e &re#u &os#t#on#n$ (as one o+ Golden Glo(;s eu#ty values, #t

(ould .e very d#++#'ult to 'onv#n'e 'onsuers t%at t%e .rand (as .e#n$ e3tended (#t%out

%an$#n$ on to t%#s &art#'ular value" >7#ll t%ey .uy your rat#onale t%at t%e very sae values and

eu#ty (ould no( .e ava#la.le at a lo( &r#'e8 To .e #n t%e &re#u se$ent no(, you %ave to

&r#'e #t at <s ) or 4B, alost on a &ar (#t% Dove,> %e sa#d" >7#t% Dove reta#l#n$ at <s 4,

Golden Glo( (#ll .e &er'e#ved as a '%ea&er o&t#on">

>7e 'an;t s#&ly ra#se t%e &r#'e,> sa#d <a/an" >7%at are (e o++er#n$ +or t%at #n'rease8

ou 'an ;t add value .e'ause you don;t (ant to ta&er (#t% t%e .rand" T%e 'onsuers (#ll t%en

as!, >Golden Glo( used to .e so '%ea&, (%at %as %a&&ened no(8 T%e user (#ll +or$et t%at 6

years a$o, <slB (as e3&ens#ve, .e'ause all %er 'o&ar#sons (ould .e #n today; s 'onte3t,> sa#d

<a/an"

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>So (%at;s t%e o&t#on8> as!ed Ma%a/an" >ou don;t %ave to .e e3&ens#ve to .e

&re#u,> sa#d <a/an" Golden Glo( already %as t%e #a$e o+ a &re#u .rand, t%an!s to #ts

t#e-tested 'ore values o+ &ur#ty, 'red#.#l#ty, and rel#a.#l#ty" 7%at (e 'an do #s re#n+or'e t%e

&re#u t%rou$% 'oun#'at#on and &os#t#on#n$" In +a't2 (e s%ould %ave t#n!ered (#t% Golden

Glo( lon$ a$o" T%at #s (%at HLL d#d (#t% Lu3" It also laun'%ed a .r#d$e .rand, Lu3

Internat#onal, #n t%e &re#u 'ate$ory,> sa#d <a/an"

>Ho( 'ould (e %ave done anyt%#n$ to t%e .rand8> as!ed Ma%a/an" >T%e &rodu't %ad

su'% a stron$ +ollo(#n$" It stood +or $old, +or sesae o#l, +or #ts su.tle eart%y &er+ue" 7e

'%an$ed t%e &a'!a$#n$ &er#od#'ally, .ut t%at;s all (e 'ould do" <ee.er t%e t#e (e .rou$%t

out a trans&arent $reen Golden Glo( (#t% t%e +ra$ran'e o+ l#e8 It .o.ed #n t%e ar!et">

<a/an (as not #n +avour o+ t%e &re#u &os#t#on#n$" It a&&eared very s%ort s#$%ted to

%#, $#ven t%e .#$$er &lan to e3tend t%e .rand" >7%ere are t%e volues #n t%e &re#u

se$ent8 He as!ed" >For soe reason, every anu+a'turer +eels t%at s!#n'are 'an .e an

#ndul$en'e o+ only t%e oneyed 'lass" As a result, t%ere #s a 'ro(d #n t%e &re#u end o+ t%e

ar!et" Do (e (ant to .e yet anot%er &layer #n t%e se$ent8>

F#+teen years a$o, Golden Glo( (as &er'e#ved as a &re#u &rodu't" ut today,

$lo.a6.rands l#!e <evlon, Coty, and Or#+lae (ere del#ver#n$ s&e'#+#' &re#u &lat+ors"

Golden Glo( d#d not %ave a $lo.al eu#ty" ;Let us rev#s#t t%e .rand and e3a#ne (%at #t stood

+or 6 years a$o and e3a#ne t%e relevan'e o+ t%ose attr#.utes #n today;s 'onte3t,> su$$ested

<a/an" >Golden Glo( stood +or 'are, 'ons'#ousness, love, ual#ty and all t%at" ut today, are

t%ese enou$% to /ust#+y a &re#u &os#t#on8> %e as!ed Ma%a/an" >T%ese attr#.utes are v#a.le #n

t%e #d-&r#'ed se$ent"> He sa#d"

>T%e #d-&r#'ed .rand #s t%e &rover.#al (as%er-an;s do$,> sa#d Ma%a/an" >ou don;t

!no( (%et%er you are at t%e .otto end o+ t%e &re#u ran$e or at t%e to&-end o+ t%e lo(-

&r#'ed ran$e" ou end u& 'reat#n$ an #a$e o+ .e#n$ on t%e o&&ortun#ty +en'e" It #s a ere

&r#'#n$ &loy, (#t% no strate$#' value">

5UESTIONS

6" D#s'uss t%e nature o+ &ro.le1s2 #n t%#s 'ase8

*" Su$$est t%e !#nd o+ 'onsuer resear'% needed8

)" Ho( s%ould Golden Glo( .e &os#t#oned re&os#t#oned to .r#n$ a.out t%e des#red '%an$e

aon$ 'onsuers8 G#ve your reasons"

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CASE I

I&a't o+ <eta#l =root#ons on Consuers

S%o&&ers; Del#$%t, a lar$e reta#l store, %ad a.ove-avera$e ual#ty and 'o&et#t#ve &r#'es" It

advert#sed #ts reta#l &root#ons #n lo'al ne(s&a&ers" Its T advert#s#n$ (as a#nly a#ed at

.u#ld#n$ store #a$e and d#d not address reta#l &root#ons" T%e ana$eent !ne( #t (ell t%at

t%ey %ad to advert#se t%e#r reta#l &root#ons ore, .ut t%ey d#d not +eel 'o+orta.le (#t% t%e

e++e't#veness o+ &resent e++orts and (anted to .etter understand t%e #&a't o+ t%e#r &resent

&root#ons"

To .etter understand t%e e++e't#veness o+ &resent e++orts, a study o+ advert#s#n$

e3&osure, #nter&retat#on, and &ur'%ases (as underta!en" <esear'%ers 'ondu'ted B #n-de&t%

#nterv#e(s (#t% 'ustoers o+ t%e store;s tar$et ar!et to deter#ne t%e a&&ro&r#ate &rodu't

#3, &r#'e, ad 'o&y and ed#a +or t%e test" In add#t#on, t%e store;s #a$e and t%at o+ #ts t(o

'o&et#tors (ere easured"

ased on t%e resear'% +#nd#n$s, d#++erent &rodu't l#nes t%at (ould a&&eal to t%e tar$et

'ustoers (ere sele'ted" T%e reta#l &root#on (as run +or a +ull (ee!" Full-&a$e

advert#seents (ere released ea'% day #n t%e t(o lo'al H#nd# ne(s&a&ers, and also #n one

En$l#s% ne(s&a&er t%at devotes s#3 &a$es to t%e 'overa$e o+ t%e state"

Ea'% even#n$, a sa&le o+ 6BB tar$et ar!et 'ustoers (ere #nterv#e(ed .y tele&%one

as +ollo(s:

1. Tar$et 'ustoers (ere as!ed #+ t%ey %ad read t%e ne(s&a&er t%at day" T%#s (as done to

deter#ne t%e#r e3&osure to advert#seent"

2. A+ter a $eneral des'r#&t#on o+ t%e &rodu't l#nes, t%e res&ondents (ere as!ed to re'all any

related reta#l advert#seents t%ey %ad seen or read"

), I+ t%e res&ondents (ere a.le to re'all, t%ey (ere as!ed to des'r#.e t%e ad, t%e &rooted

&rodu'ts, sale &r#'es, and t%e nae o+ t%e s&onsor#n$ store"

4. I+ t%e res&ondents (ere a''urate #n t%e#r ad #nter&retat#on, t%ey (ere as!ed to e3&ress

t%e#r #ntent#ons to &ur'%ase"

5. <es&ondents (ere also as!ed +or su$$est#ons to .e #n'or&orated #n +uture &root#ons

tar$eted at t%#s 'onsuer se$ent"

Ied#ately a+ter t%e 'lose o+ &root#on, BB tar$et ar!et 'ustoers (ere surveyed to

deter#ne (%at &er'enta$e o+ t%e tar$et ar!et a'tually &ur'%ased t%e &rooted &rodu'ts" It

also deter#ned (%#'% sour'es o+ #n+orat#on #n+luen'ed t%e #n t%e#r de'#s#on to &ur'%ase and

t%e aount o+ t%e#r &ur'%ase"

<esults o+ t%e study s%o(ed t%at ad e3&osure (as &er 'ent and ad a(areness level

(as @ &er 'ent and (as 'ons#dered as %#$%" Only 4) &er'ent res&ondents e3&osed to and

a(are o+ t%e ad 'o&y 'ould a''urately re'all #&ortant deta#ls, su'% as t%e nae o+ t%e store

&root#n$ t%e reta#l sale" ust 4) &er 'ent 'orre't #nter&retat#on (as 'ons#dered as lo(" O+

t%ose (%o 'ould a''urately #nter&ret t%e ad 'o&y, )* &er 'ent sa#d t%ey #ntended to res&ond .y

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&ur'%as#n$ t%e advert#sed &rodu'ts ; and @&er 'ent sad t%ey %ad no #ntent#on to .uy" T%#s

y#elds an overall #ntent#on to .uy o+ &er 'ent" T%e lar$est area o+ lost o&&ortun#ty (as due to

t%ose (%o d#d not a''urately #nter&ret t%e ad 'o&y"

T%e &ost-&root#on survey #nd#'ated t%at only 4"* &er 'ent o+ t%e tar$et ar!et

'ustoers ade &ur'%ases o+ t%e &rooted &rodu'ts dur#n$ t%e &root#on &er#od" In ters o+

%o( t%e .uyers learned o+ t%e &root#on, 4 &er 'ent ent#oned ne(s&a&er A 1H#nd#2, * &er

'ent ne(s&a&er 1H#nd#2, @ &er 'ent ne(s&a&er 1En$l#s%2, and 6 &er 'ent learned a.out sale

t%rou$% (ord-o+ out% 'oun#'at#on"

T%e reta#l &root#on (as /ud$ed as su''ess+ul #n any (ays, .es#des y#eld#n$ sales

(ort%

<s ?BB,BBB" Ho(ever, ana$eent (as 'on'erned a.out not a'%#ev#n$ a %#$%er level o+

ad 'o&re%ens#on, #ss#n$ a s#$n#+#'ant sales o&&ortun#ty: It (as .el#eved t%at a .etter ad

(ould %ave at least &er 'ent 'orre't 'o&re%ens#on aon$ t%ose a(are o+ t%e ad" T%#s #n

turn (ould alost dou.le sales (#t%out any add#t#onal 'ost"

5UESTIONS

6" 7%y (ould soe 'onsuers %ave %#$%-#nvolveent levels #n learn#n$ a.out t%#s sales

&root#on8

* Is a level o+ &er 'ent 'o&re%ens#on real#st#' aon$ t%ose (%o .e'oe a(are o+ an

ad8 7%y or (%y not8

)" Do you t%#n! su'% &root#ons are l#!ely to #n+luen'e t%e ual#ty #a$e o+ t%e reta#l

store8 E3&la#n"

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