UOM FOURTH SEMESTER – STRATEGIC MANAGEMENT

PGPM+ UOM; INTERNAL ASSESSMENT COMPONENT

ASSIGNMENT No. 1

Answer all questions - Total Marks 40 marks

1. Explain the relationship between strategic management and competitive

advantage for firms. How can a firm achieve sustained competitive

advantage?

A competitive advantage is an outstanding characteristic that makes a firm more desirable to consumers than the competition. Examples of competitive advantage include superior quality, lower price and better customer service. A competitive advantage can arise because of a firm's competencies.How can a firm achieve sustained competitive advantage

5 Steps to Creating a Sustainable Competitive Advantage

1. Establish Brand Loyalty. Customers will often remain with a brand they have loyalty towards, even though the company does not offer the cheapest or most effective product. Focus on building strong relationships with your customers and delivering a great customer experience and service.

2. Patent Your Product. There has been a lot of debate recently about the true value of a patent. While patents are not a ‘cure all’, they are an important weapon in an entrepreneur’s competitive advantage arsenal.

3.  Continually Innovate. Customers like updates and upgrades. Keeping your product fresh and compatible with the market place (particularly if software), is essential.

4. Hire ‘Connected’ Team Members. If your market includes large companies and government departments, connections to key individuals within these organizations can dramatically accelerate your ability to meet and secure contracts. Try to have at least one member on your team who is ‘connected’.

5. Use Long Term Contracts and Incentives.  This step has to be executed carefully, as it can backfire. If you can establish a long term contract with your customer, then clearly they are less likely to switch to a competitor. If you only offer long terms contracts, however, and your competitors are offering short terms contracts, then you are likely to lose business.

2. Explain the process of developing a mission statement

Select several articles about mission statement and ask all managers to

read as background information

All the managers prepare a mission statement themselves

A facilitator or committee of managers should merge these statements

Distribute this statement among managers again for modifications,

addition or deletion in the text

An emotional attachment generates through such sharing

Resolution of divergent views

3. Discuss the process of performing an external audit.

Involve as many managers & employees as possible

Gather competitive intelligence

Information about social, demographic, cultural, environmental,

etc.

Monitor sources of information (key magazines, articles, etc.)

Utilization of Internet

Suppliers, distributors, customers as sources of information

Use of internet as source of information

Periodic scanning repots

Frequent meeting to identify the most important opportunities and

threats

Communicate widely in the organization

4. List five steps that comprise an effective framework for conducting an EFE

and IFE Matrix. Explain the details involved in performing any one of the

steps.

5. Explain the resource-based view and its relation to strategic

management.

What is a resource based view?

RBV is an approach to achieving competitive advantage that emerged in 1980s and 1990s, after the major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”) and others. The supporters of this view argue that organizations should look inside the company to find the sources of competitive advantage instead of looking at competitive environment for it.

The following model explains RBV and emphasizes the key points of it.

Improve your management style, hire a leadership development company

According to RBV proponents, it is much more feasible to exploit external opportunities using existing resources in a new way rather than trying to acquire new skills for each different opportunity. In RBV model, resources are given the major role in helping companies to achieve higher organizational performance. There are two types of resources: tangible and intangible.

Tangible assets are physical things. Land, buildings, machinery, equipment and capital – all these assets are tangible. Physical resources can easily be bought in the market so they confer little advantage to the companies in the long run because rivals can soon acquire the identical assets.

Intangible assets are everything else that has no physical presence but can still be owned by the company. Brand reputation, trademarks, intellectual property are all intangible assets. Unlike physical resources, brand reputation is built over a long time and is something that other companies cannot buy from the market. Intangible resources usually stay within a company and are the main source of sustainable competitive advantage.

The two critical assumptions of RBV are that resources must also be heterogeneous and immobile.

Heterogeneous. The first assumption is that skills, capabilities and other resources that organizations possess differ from one company to another. If organizations would have the same amount and mix of resources, they could not employ different strategies to outcompete each other. What one company would do, the other could simply follow and no competitive advantage could be achieved. This is the scenario of perfect competition, yet real world markets are far from perfectly competitive and some companies, which are exposed to the same external and competitive forces (same external conditions), are able to implement different strategies and outperform each other. Therefore, RBV assumes that companies achieve competitive advantage by using their different bundles of resources.

The competition between Apple Inc. and Samsung Electronics is a good example of how two companies that operate in the same industry and thus, are exposed to the same external forces, can achieve different organizational performance due to the difference in resources. Apple competes with Samsung in tablets and smartphones markets, where Apple sells its products at much higher prices and, as a result, reaps higher profit margins. Why Samsung does not follow the same strategy? Simply because Samsung does not have the same brand reputation or is capable to design user-friendly products like Apple does. (heterogeneous resources)

Immobile. The second assumption of RBV is that resources are not mobile and do not move from company to company, at least in short-run. Due to this immobility, companies cannot replicate rivals’ resources and implement the same strategies. Intangible resources, such as brand equity, processes, knowledge or intellectual property are usually immobile.

6. Discuss Michael Porter’s five generic strategies.

Generic Strategies

These three approaches are examples of "generic strategies," because they can be applied to products or services in all industries, and to organizations of all sizes. They were first set out by Michael Porter in 1985 in his book "Competitive Advantage: Creating and Sustaining Superior Performance."

Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market). He then subdivided the Focus strategy into two parts: "Cost Focus" and "Differentiation Focus". These are shown in Figure 1 below.

The Cost Leadership Strategy

Porter's generic strategies are ways of gaining competitive advantage – in other words, developing the "edge" that gets you the sale and takes it away from your competitors. There are two main ways of achieving this within a Cost Leadership strategy:

Increasing profits by reducing costs, while charging industry-average prices. Increasing market share through charging lower prices, while still making a reasonable profit on

each sale because you've reduced costs.

The Cost Leadership strategy is exactly that – it involves being the leader in terms of cost in your industry or market. Simply being amongst the lowest-cost producers is not good enough, as you leave yourself wide open to attack by other low-cost producers who may undercut your prices and therefore block your attempts to increase market share.

You therefore need to be confident that you can achieve and maintain the number one position before choosing the Cost Leadership route. Companies that are successful in achieving Cost Leadership usually have:

Access to the capital needed to invest in technology that will bring costs down. Very efficient logistics.

A low-cost base (labor, materials, facilities), and a way of sustainably cutting costs below those of other competitors.

The greatest risk in pursuing a Cost Leadership strategy is that these sources of cost reduction are not unique to you, and that other competitors copy your cost reduction strategies. This is why it's important to continuously find ways of reducing every cost. One successful way of doing this is by adopting the Japanese Kaizen   philosophy of "continuous improvement."

The Differentiation Strategy

Differentiation involves making your products or services different from and more attractive those of your competitors. How you do this depends on the exact nature of your industry and of the products and services themselves, but will typically involve features, functionality, durability, support and also brand image that your customers value.

To make a success of a Differentiation strategy, organizations need:

Good research, development and innovation. The ability to deliver high-quality products or services.

Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.

Large organizations pursuing a differentiation strategy need to stay agile with their new product development processes. Otherwise, they risk attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments.

The Focus Strategy

Companies that use Focus strategies concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market. Because they serve customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers. This makes their particular market segment less attractive to competitors.

As with broad market strategies, it is still essential to decide whether you will pursue Cost Leadership or Differentiation once you have selected a Focus strategy as your main approach: Focus is not normally enough on its own.

But whether you use Cost Focus or Differentiation Focus, the key to making a success of a generic Focus strategy is to ensure that you are adding something extra as a result of serving only that market niche. It's simply not enough to focus on only one market segment because your organization is too small to serve a broader market (if you do, you risk competing against better-resourced broad market companies' offerings.)

The "something extra" that you add can contribute to reducing costs (perhaps through your knowledge of specialist suppliers) or to increasing differentiation (though your deep understanding of customers' needs).

7. Discuss the three challenges that strategists face today.

8. Describe the tactics that have been used by politicians that can also aid

strategists.

9. Explain the benefits and limitations of developing a Boston Consulting

Group Matrix.

boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG,

USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation

for an organization to examine different businesses in it’s portfolio on the basis of their related

market share and industry growth rates. It is a two dimensional analysis on management of SBU’s

(Strategic Business Units). In other words, it is a comparative analysis of business potential and the

evaluation of environment

BENEFITS OF THE BCG MATRIX BCG model is helpful for managers to evaluate balance in the firm’s current portfolio of

Stars, Cash Cows, Question Marks and Dogs.

It provides a base for management to decide and prepare for future actions.

The model is simple and easy to understand.

9. LIMITATIONS OF THE BCG MATRIX High market share is not the only success factor.

There is no clear definition of what constitutes a "market".

The model uses only two dimensions – market share and growth rate. This may tempt management to emphasize a particular product, or to divest prematurely.

The model neglects small competitors that have fast growing market shares.

UOM FOURTH SEMESTER – STRATEGIC MANAGEMENT

PGPM+ UOM; INTERNAL ASSESSMENT COMPONENT

ASSIGNMENT No. 2; Total - 20 Marks

MARKETING MIXThe marketing mix is a business tool used in marketing and by marketing

professionals. The marketing mix is often crucial when determining a product or

brand's offer, and is often associated with the four Ps: price, product, promotion,

and place. In service marketing, however, the four Ps are expanded to the seven

Ps or eight Ps to address the different nature of services. In the 1990's, the concept

of four Cs was introduced as a more customer-driven replacement of four Ps. There

are two theories based on four Cs: Lauterborn's four Cs

(consumer, cost, communication, convenience), and Shimizu's four Cs

(commodity, cost, communication, channel).

1. Product (or Service)

What are you selling? Not just the product description but the benefit the

customer derives from your product. The benefits are tangible and

intangible.Your product is really your Value Proposition as is best

communicated through aFive Step Brand Positioning Statement.

2. Place

Where will you sell your product? Not just "in a store", but more specifically

what type of store, what department, what category. In-store Promotions are

Critical in Gaining New Shoppers to Buy the Product.

3. Price

This is not only the price itself, but what value does the consumer

perceive from the price. The price is not only relative to your brand, but it is

also relative to the competition.

4. Promotion

How will you get the message out to the consumer on your features and

benefits? Why will the consumer believe your message? How will you

communicate? For food entrepreneurs on a budget this usually entails social

media, email marketing, food product demos, in-store price promotions and

point of sale signs.Your Food Packaging is the Most Important Marketing

Vehiclefor your brand.

EXAMPLE OF A MARKETING MIX OF WALT DISNEY

Walt Disney has touched the heart of many kids and adults. Its theme parks,

movies as well as merchandise make us revisit our golden days when we were

children. To make a brand so big and win the audiences over and over requires

a magical touch. This magic can be found in the marketing mix of Walt

Disney.

PRODUCT – There are 3 major products of Walt Disney. First and foremost is

its production company which is involved in making movies and cartoons with

stellar characters like Mickey and Minnie mouse, Goofy, Donald duck and

others. All the characters shown in the above pic are creations of Walt Disney

production. Walt Disney is also involved in the production of various movies

like beauty and the beast, Alladdin, Jungle book and countless others. The Walt

Disney production house drives the magic that is Walt Disney as all the movies

are magical and they rope in the audience making them a life long follower of

Walt Disney.

The second product of Walt Disney is Disneyland. Known to be one of the most

profitable theme parks, Disneyland is a once in a life time theme park where

you are sure to be bedazzled. You get to meet all the characters of Walt

Disney, go on rides and most importantly – experience the magical world of

Walt Disney first hand.

It is but natural that with movies and a huge theme park, Disney has their own

merchandise. And hence we enter the third biggest business of Disney – Disney

store which is involved in the sales of all products connected to Disney –

clothing, accessories, watches, and what not.

PRICE – As Walt Disney is focused on getting the mass population involved,

the pricing is kept keeping the middle class in mind. Disney wants all kids and

their parents to have their merchandise. Thus these products are priced such

that the middle class too can enjoy them. The tickets of Disneyland, though not

cheap, are certainly not that high priced that you can’t visit them frequently. It

is quite common to note that several families visit Disney land many times in

their lives to enjoy the park.

PLACE – Disneyland is placed in several regions across the world. The

following article lists all the difference places across the world where various

Disney resorts and parks are located.

PROMOTIONS – Promotion of Walt Disney is mainly holistic. The parks and

movies rarely need a push. In fact people wait in anticipation for the next

Disney movie or for their visits to Disneyland. Promotion is done in an internal

manner. For Disneyland, various tours and packages are promoted which make

it easier for people to visit Disneyland. Disney’s production like movies is

promoted through various media. Disney has its own channel as well where the

movies and products are promoted. Finally merchandising is promoted by

having various retail stores, online store and on point of sale such as theme

parks and resorts.

PEOPLE – People of Disney are known be most polite and most inclined

towards their customers. Disney has its own training university for training of

their customer representatives and theme park employees. These universities

teach the employees about Walt Disney’s culture and value. In Walt Disney, a

single customer is said to be a direct contributor to the bottomline of the

company as a single customer will later bring 10 more customers to Disney

with a positive word of mouth. Thus Disney people are well trained, well

mannered and one of the best in the business.

PHYSICAL EVIDENCE – The tagline for Disneyland is “the happiest place on

earth”. Another one is “Where the magic begins” and one more is “Where

dreams come true”. These taglines are loved by people and Walt Disney

actually proves that the taglines are correct. People who visit Disneyland and

come out shower praises on Disneyland. Disneyland has small small things

which make the whole effect magical. To experience the physical evidence of

Disneyland I would like to refer this article. It is an article by another marketer

who has written his experience in Disneyland from a first person’s

perspective. 

NOTE TO THE PARTICIPATING STUDENTS

1. There are 2 companies given below & each student should do the

marketing mix of all the 2 companies.

2. Each of you should come out with their conclusions and justification for

each company as to how marketing mix strategies affect Strategic

Marketing environment also!!

3. The marks will be decided based on the conclusions & justifications

given apart from the marketing mix details.

4. Submit a hard copy neatly stapled with a cover page stating the group

names; subject (Strategic Management Assign 2) in bold; Submitted to;

etc

5. This is a part of PGPM+UoM Assessment Component- part of class

assignment/case discussion which will be evaluated as part of 20

MARKS

COMPANIES FOR CONDUCTING THE MARKETING MIX ACTIVITY

1. MARKETING MIX OF TVS MOTORS

2. MARKETING MIX OF DELL

UOM FOURTH SEMESTER – STRATEGIC MANAGEMENT

PGPM+ UOM; INTERNAL ASSESSMENT COMPONENT

ASSIGNMENT No. 3

Answer all 40 questions (20 Marks)

10. What can be defined as the art and science of formulating, implementing and evaluating cross-

functional decisions that enable an organization to achieve its objectives?

a. Strategy formulation

b. Strategy evaluation

c. Strategy implementation

d. Strategic management

e. Strategic leading

11. During what stage of strategic management are a firm’s specific internal strengths and weaknesses

determined?

a. Formulation

b. Implementation

c. Evaluation

d. Feedback

e. Goal-setting

12. Anything that a firm does especially well compared to rival firms is referred to as

a. competitive advantage

b. comparative advantage

c. opportunity cost

d. sustainable advantage

e. an external opportunity

13. In which phase of strategic management are annual objectives especially important?

a. Formulation

b. Control

c. Evaluation

d. Implementation

e. Management

14. Principles of conduct that guide decision-making are known as

a. human rights

b. the Constitution

c. business ethics

d. nonprofit organization policies

e. social responsibility requirements

15. Which of these basic questions should a vision statement answer?

a. What is our business?

b. Who are our employees?

c. Why do we exist?

d. What do we want to become?

e. Who are our competitors?

16. What is the first step in the comprehensive strategic-management model?

a. Developing vision and mission statements

b. Performing external audits

c. Performing internal audits

d. Measuring and evaluating performance

e. Establishing long-term objectives

17. According to the comprehensive strategic-management model, which step needs to be completed

immediately following the establishment of long-term objectives?

a. Developing vision and mission statements

b. Performing external audits

c. Performing internal audits

d. Generating, evaluating, and selecting strategies

e. Measuring and evaluating performance

18. What is the best time to develop a mission statement?

a. Before a business is opened

b. When the firm is successful

c. When the firm is in financial trouble

d. When the firm is in legal trouble

e. When the firm encounters competition

19. A proactive environmental policy is likely to lead to

a. higher cleanup costs

b. conservation of energy

c. reduced customer loyalty

d. numerous liability suits

e. higher medical costs

20. Which of these examples of a mission statement’s focus area is not effective?

a. AT&T focuses on communication rather than telephones.

b. Exxon/Mobil focuses on oil and gas rather than energy.

c. Union Pacific focuses on transportation rather than railroads.

d. Universal Studios focuses on entertainment rather than movies.

e. Starbucks focuses on the café experience rather than coffee.

21. Which type of trend is exemplified by the increasing numbers of two-income households in

America?

a. Social

b. Economic

c. Cultural

d. Technological

e. Historical

22. In general, what happens to American goods in overseas markets when there is a strong dollar?

a. Less expensive

b. More attractive

c. Cheaper

d. More expensive

e. Desirable

23. According to Porter, what is usually the most powerful of the five competitive forces?

a. Potential development of substitute products

b. Bargaining power of suppliers

c. Bargaining power of consumers

d. Rivalry among competing firms

e. Potential entry of new competitors

24. Which stage in the strategy-formulation framework focuses on generating feasible alternative

strategies?

a. Input

b. Output

c. Decision

d. Throughput

e. Matching

25. Which strategy formulation technique reveals the relative attractiveness of alternative strategies

and thus provides an objective basis for selecting specific strategies?

a. SWOT

b. SPACE

c. QSPM

d. IFE

e. CPM

26. Which section of the SWOT Matrix involves matching internal strengths with external

opportunities?

a. The WT cell

b. The SW cell

c. The WO cell

d. The ST cell

e. The SO cell

27. The two internal dimensions represented on the axes of the SPACE Matrix are

a. environmental stability and industry strength

b. industry strength and internationalization

c. internationalization and competitive advantage

d. competitive advantage and financial strength

e. financial strength and environmental stability

28. An organization that has a low relative market share position and competes in a slow-growth

industry is referred to as a

a. dog

b. question mark

c. star

d. cash cow

e. cowboy

29. For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is

a. extensive cost and asset reduction

b. asset expansion

c. employee expansion

d. immediate liquidation of assets

e. divestiture

30. Through which tactic is it possible to achieve similar results using different means or paths?

a. Generalization

b. Satisficing

c. Focus on higher-order issues

d. Equifinality

e. Specialization

31. What are guidelines, methods, procedures, rules, forms and administrative practices known as?

a. Long-term objectives

b. Policies

c. Annual objectives

d. Strategies

e. Goals

32. Which approach for managing and resolving conflict involves exchanging members of conflicting

parties of that each can gain an appreciation of the others point of view?

a. Avoidance

b. Resistance

c. Compliance

d. Diffusion

e. Confrontation

33. Which approach for managing and resolving conflict involves playing down differences between

conflicting parties while accentuating similarities and common interests?

a. Avoidance

b. Resistance

c. Compliance

d. Diffusion

e. Confrontation

34. What type of organizational structure do most small businesses follow?

a. Divisional structure by product

b. Functional structure

c. Divisional structure by customer

d. Process type structure

e. Matrix structure

35. A divisional structure by geographic area is most appropriate when

a. organizations have similar branch facilities located in widely dispersed areas

b. an organization offers only a limited number of products or services

c. strict control and attention to product lines are needed

d. an organization has many skilled managers

e. the firm serves one geographic area

36. What action involves reconfiguring or redesigning work, jobs and processes for the purpose of

improving costs, quality, service and speed?

a. Restructuring

b. Downsizing

c. Reengineering

d. Delayering

e. Benchmarking

37. A change strategy that attempts to convince people the change is to their personal advantage is

a. diffusion

b. force

c. educative

d. rational

e. compromise

38. Which strategy could be best defined as an effective, multi-method technique of studying and

altering a firm’s culture?

a. Benchmarking

b. Delivering

c. Triangulation

d. Process management

e. Educative change strategy

39. Which two variables are of central importance to strategy implementation?

a. Diversification and budgeting.

b. Marketing penetration and competition.

c. Competition and collaboration.

d. Product development and market development.

e. Market segmentation and product positioning.

40. Which variable would be considered part of the product element of the marketing mix?

a. Advertising

b. Packaging

c. Payment terms

d. Inventory levels and location

e. Publicity

41. Multidimensional scaling is used to determine

a. the size of a new building

b. the size of a new department

c. the amount of high-tech equipment a firm needs

d. product positioning

e. market segmentation

42. What is the most widely used technique for determining the best combination of debt and stock?

a. Debt-to-stock ratio

b. Earnings per share/earnings before interest and tax analysis

c. Gross profit analysis

d. Capital asset pricing model

e. Present value analysis

43. The first step in preparing projected statements is to

a. prepare the projected balance sheet

b. take an inventory of goods

c. estimate increases in debt

d. prepare the projected income statement

e. calculate the projected net income

44. The purpose of strategy evaluation is to

a. increase the budget annually

b. alert management to problems or potential problems

c. make budget changes

d. evaluate employees’ performance

e. improve R&D programs

45. What is important because organizations face dynamic environments in which key external and

internal factors often change quickly and dramatically?

a. Strategy formulation

b. Strategy evaluation

c. Strategy simplification

d. Strategy modification

e. Strategy implementation

46. Strategy evaluation is based on

a. empirical data

b. qualitative criteria

c. objective data

d. qualitative and quantitative criteria

e. intuition

47. What is the best way to overcome individuals’ resistance to change in strategy evaluation?

a. Participation

b. Command-and-control

c. Laissez-faire system

d. Rational argument

e. Emotional reactions

48. What factor determines the final design of a firm’s strategy-evaluation and control system?

a. Opportunities

b. Threats

c. External characteristics

d. The organization’s characteristics

e. The competition’s characteristics

49. What permits quick response to change, prevents panic in crisis situations, and makes managers

more adaptable?

a. Auditing

b. Implementing a balanced scorecard

c. Contingency planning

d. Taking corrective actions

e. Measuring performance

UOM FOURTH SEMESTER – STRATEGIC MANAGEMENT

PGPM+ UOM; INTERNAL ASSESSMENT COMPONENT

ASSIGNMENT No. 4

Two Case Studies (10 Marks Each) Total – 20 marks

1. DD is the India’s premier public service broadcaster with more than 1,000 transmitters covering 90% of

the country’s population across on estimated 70 million homes. It has more than 20,000 employees

managing its metro and regional channels. Recent years have seen growing competition from many

private channels numbering more than 65, and the cable and satellite operators (C & S). The C & S

network reaches nearly 30 million homes and is growing at a very fast rate. DD’s business model is based

on selling half – hour slots of commercial time to the programme producers and charging them a minimum

guarantee. For instance, the present tariff for the first 20 episodes of a programme Rs.30 lakhs plus the

cost of production of the programme. In exchange the procedures get 780 seconds of commercial time

that he can sell to advertisers and can generate revenue. Break-even point for procedures, at the present

rates, thus is Rs.75,000 for a 10 second advertising spot. Beyond 20 episodes, the minimum guarantee is

Rs.65 lakhs for which the procedures has to charge Rs.1,15,000 for a 10 second spot in order to break-

even. It is at this point the advertisers face a problem – the competitive rates for a 10 second spot is

Rs.50,000. Procedures are possessive about buying commercial time on DD. As a result the DD’s projected

growth of revenue is only commercial time on DD. As a result the DD’s projected growth of revenue is only

6- 10% as against 50-60% for the private sector channels. Software suppliers, advertisers and audiences

are deserting DD owing to its unrealistic pricing policy. DD has options before it. First, it should privates,

second it should remain purely public service broadcaster and third, a middle path. The challenge seems

to be exploit DD’s immense potential and emerge as a formidable player In the mass media.

i. What is the best option, in your view, for DD?

ii. Analyse the SWOT factors the DD has.

iii. Why do you think that the proposed alternative is the best?

2. In 2006-07 PTC Food division decided to enter the fast growing (20-30% annually) snacks segment, an

altogether new to it. It had only one national competitor-Trepsico's Trito. After a year its wafer snack

brand- Ringo, fetched 20% market share across the country. Ringo's introduction was coincided with the

cricket world cup. The wafer snacks market is estimated to be around Rs. 250 crores. The company could

take the advantage of its existing distribution network and also source potatoes from farmers easily.

Before the PTC could enter the market a cross-functional team made a customer survey through a

marketing research group in 14 cities of the country to know about the snacks of eating habits of people.

The result showed that the customers within the age-group of 15-24 years were the most promising for the

product as they were quite enthusiastic about experimenting new snack taste. The company reported to

its chefs and the chefs came out with 16 flavours with varying tastes suiting to the targetted age-

group.The company decided to target the youngsters as primary target on the assumption that once they

are lured in, it was easier to reach the whole family. Advertising in this category was extremely crowded.

Every week two-three local products in new names were launched, sometimes with similar names. To

break through this clutter the company decided to bank upon humour appeal.The Industry sources reveal

that PTC spent about Rs. 50 crores on advertisement and used all possible mediaprint and electronic, both

including the creation of its own website, Ringoringoyoungo.com with offers of online games, contests etc.

Mobile phone tone downloading was also planned which proved very effective among teenagers. The site

was advertised on all dotcom networks. Em TV, Shine TV, Bee TV and other important channels were also

used for its advertisement along with FM radio channels in about 60 cities with large hoardings at strategic

places. Analysts believes that Ringo's success story owes a lot to PTC's widespread distribution channels

and aggressive advertisements. Humour appeal was a big success. The `Ringo' was made visible by

painting the Railway bogies passing across the States. It has also been successful to induce Lovely

Brothers' Future Group to replace Trito in their Big-Bazaar and chain of food Bazaars. PTC is paying 4%

higher margin than Trepsico to Future group and other retailers. Ringo to giving Trepsico a run for its

money. Trito's share has already been reduced considerably. Retail tieups, regional flavours, regional

humour appeals have helped PTC. But PTC still wants a bigger share in the market and in foreign markets

also, if possible.

Answer the following questions:

a. What is SWOT Analysis?

b. What are the strength of PTC?

c. What are the weaknesses of PTC for entering into the branded snacks market?

What kind of marketing strategy was formulated and implemented for Ringo?

What else need to be done by Ringo so as to enlarge its market?

.