Cap Task 4

1. A popular walk-in supermarket in a Tier-I city is planning on extending its business

into the home-delivery market, which is currently dominated by certain established
grocery delivery platforms. Develop a launch strategy for the same.

A: Objective: To launch home delivery service of a supermarket walk-in store.

The supermarket already has the supply chain and distribution network for the products it is
selling in its walk-in store. It is also popular and has large customer base. It intends to sell the
same products in home delivery format. The home delivery market is dominated by
established grocery delivery platforms and the supermarket has to compete with them.

Strategy:
Initially the approach should be more conservative the market rollout must be limited.
Following factors should be considered for the initial launch:
- A distance limit of 4-5 km radius must be imposed so as to reduce any major delivery
problems caused by inexperience in scheduling.
- The items that can be sold online and those that can’t be sold online must be listed out.
- Perishable goods must be sold in limited quantity initially to reduce damages.
- The quantities and price of different SKUs must be must be updated on real time basis in
the database
- An android app and website must be designed containing information of all the products
which are to be sold online along with payment gateway
- Manual control of delivery and order scheduling must be maintained and the delivery
time must be updated to customer manually

The rollout must be done gradually with the existing customers given priority and not
soliciting new customers to ensure the rollout does not become chaotic. Care must be taken
that the current customers don’t desert the store by ensuring excellent service.

Implementation:
Pre-launch:
- The existing customers must be given coupons with discounts or cashbacks for online
purchases whenever they make a purchase in the walk-in store. Pamphlets must also be
given to every customer who visits the walk-in store giving full details of the online store
and home delivery services along with free delivery service during first few weeks of
launch.
- The godown and storage space must be ramped up to enable holding at least 50% more
products initially and then increase it further by 100% or more depending on demand.
The supply chain must also be strengthened to be capable of increasing the frequency of
inbound shipments of products to replenish stocks as they are depleted
- Additional staff have to be hired and training provided to handle home delivery services
like packaging, billing and quality control of online orders and to load and unload them to
delivery vehicles.

During-Launch:
- The customers must be attracted by discounts and cashbacks along with customer service
guarantee. Any problems that occur must be compensated by providing cashbacks
proportionate to the loss incurred.
- Sufficient stocks of all products must be maintained by keeping close watch on the
demand for different products and maintaining a dynamic supply chain to replenish the
products according to the demand.
- The delivery can be outsourced to third party local transport companies or by contracting
freelance drivers of tempos, vans etc. Additional vehicles and drivers must be hired as
and when demand increases. In addition, the staff numbers must be increased as and when
the demand rises.
- The pricing of the online orders must be maintained competitive to attract customers but
care must be taken to ensure that it does not cannibalise the walk-in store revenues by
controlling the goods and limiting the quantity that are sold online.

Post launch:
If the home delivery service fails to take off and gets very limited traction with no signs of
strong growth, thorough analysis of cost and benefit must be done and the programme must
be scrapped if the cost significantly outweighs the benefits.
If the programme becomes a success, following steps can be taken to further enhance the
home delivery programme:
- The demand and supply balance must be maintained strictly and any shortage must be
dealt with quickly, even if it entails purchasing from more expensive sources. The priority
must be given to walk-in store as that is a more established business
- Expansion of customer base by indulging in aggressive marketing strategy by advertising
on newspapers, distribution of pamphlets on home to home basis etc.
- Supply chain must be made more robust with increased storage, tailored and increased
inbound shipment and hiring of more staff for delivery.
- Automated order scheduling can be enabled and more products can be listed online by
using the data from the initial days.
 2. Dettol is launching a new product in the form of pellets. Develop a one-year GTM
strategy for the product.
A: Objective: To develop a strategy to launch and sustain a new product in the form of
pellets under the Dettol brand for a year.

Dettol is a brand of cleaning supplies mainly associated with disinfectants, antiseptics and
soaps. The brand is widely recognised across India and has positioned itself as a brand which
always focuses on killing germs and bacteria and helping people fight against disease causing
microbes. With increased awareness on hygiene due to government initiatives like Swatch
Bharat and toilet promotion schemes, there is a very strong trend in growth of cleaning
products in the near future
STP analysis:
In Indian context, the people can be vastly divided into upper class, middle class and lower
class. In addition, these segments can be further classified as “stationary” or “mobile”
depending on the amount of travel these people have to do.
The main customer base of Dettol products is middle class and upper class householders.
Urban areas will have predominance among the user base. The main target base of the Dettol
pellets must be the upper and middle class people with high mobility needs. Travellers,
professionals, students living in hostels and offices are also the main target segment of the
Dettol pellets.
Considering that the pellets are under Dettol brand, it must be a cleaning or disinfecting
product to maintain the brand image and positioning. Also, since the product is in the form of
pellets, it must be positioned as a portable solution for cleaning and hygiene-based solution.

4P analysis:

Product:
The product of disinfectant pellets is a completely new product and has no other substitute in
the market. It must be made to ensure the needs of the target customers, who are the
customers with high mobility needs, fast paced life, tourists and travellers. The pellets must
be designed in such a manner as to be readily soluble in water and produce instant foam and
soapy solutions. The pellets must be enclosed in a small case holding several pellets to help
in carrying ease. Finally, the pellets should have the “traditional Dettol smell” which is very
popular amongst people

Pricing:
India is in general price sensitive market. However, the customer base being targeted are in
the richer section and also have high mobility needs indicating higher willingness to spend.
There are no cleaning pellets available and hence it can be considered as an opportunity to
use price skimming strategy. Also, the pricing must be such that the sales of the Dettol’s
established products don’t get cannibalised. So, the pellets must be priced as a premium
product during initial periods of launch.
Promotion:
Dettol has a reputation for being a brand that offers reliable disinfectant. So, the brand equity
of Dettol must be leveraged to promote the new product. Main promotion strategies are:
- Mass advertising via TV and newspapers
- Certifications from medical associations or other laboratories to create sense of
reliableness
- Mobility needs and ease of carrying the pellets must be emphasised
- Advertisement can run on themes involving doctors, mothers etc with emphasise on
hygiene in the fast paced life

Placement:
The product must be supplied pan India with focus on urban and semi urban areas.
Distribution network of Dettol brand must be taken advantage of to enable better supply
chain logistics. Modern trade channel must be given more emphasis. The distribution method
must be selective as the pellets are meant for select segment of customers and not a
commodity.

3. Summarize the "Marketing Myopia" document in 400 words (attached in mail)

A: The main cause for industries to have failed or slowed down in growth is due to wrongful
focus on the product rather than on the needs of the customer. For example, Hollywood saw a
major churn as it defined its industries in terms of movie making rather than entertainment.
As a result, lot of movie house went bankrupt and new wave of writers with more
entertaining and creative skills took over.
Marketing myopia occurs when the use case of industry is defined narrowly and hence misses
major opportunities. This is not just limited to reasons related to difference between products
and customer needs of the industry but can include a variety of reason some of which may be
less obvious or external.
One of the reasons could be simply the lack of motivation to survive and satisfy the public
through inventiveness and skill as in the case of railroads.
Obsolescence of any technology or industry due to arrival of better product or innovation is
one of the reasons why an industry can fail. For example, dry cleaning lost its charm due to
arrival of synthetic clothes, grocery stores were hit by supermarkets. When the industry fails
to adapt and continually try to give better value by keeping up with the innovation, the
industry will fail.
Self-deceiving cycles in having false beliefs that something can’t fail and will continually
keep growing can cause market myopia. Such thoughts can lead to wrongful investments and
losses.
False beliefs in population growth causing automatic growth in industry has also seen a big
trouble when the population growth stalls and tend towards negative growth.
Another problem is in asking for trouble where a industry gets big and stops focusing on
innovations and small companies arise with innovative ideas and take their place.
Idea that somethings are indispensable like in the case of petroleum or other natural resources
can also fail either when they runout or when another supplier with higher reserves supplies
much cheaper resource and thus making the industry reel in losses.
It is imperative that industries accept that the future is always uncertain and making false
assumptions or having narrow focus will always result in decline.
Ford’s plan of price, operation and product was one of the successful strategies which worked
wonders and is still one of the most important method of staying relevant in market,
Product provincialism can decline an industry as and when consumer needs changed or the
marketing approach changed
AT the end of the day, for a company to survve, it must align with the makret, understand
people’s needs in changing times and keep innovating to stay relevant.

4. Refer to case of ‘Savlon Chalksticks’ which was also discussed in the MarkSoc
session and write a summary under the following sub-heads:
• Summary of the case
• Insights gained
• Conclusion

A: Savlon entered Indian market for hand wash product. The hand wash penetration was just
14% in India. It was particularly low in tier 2 and tier 3 towns and rural areas. In the existing
market, 70% market share was held by just 2 major companies – Dettol and Lifebuoy. Savlon
saw the opportunity of entering the untapped market in tier 2 and tier 3 cities and generate a
customer base.
The problem with Dettol and lifebuoy’s advertising campaigns were analysed by Savlon and
found that these campaigns only generated awareness about hand wash but did nothing more
to implement it. Also, these campaigns mainly focused on the middle and upper class and
positioned their products as premium.
The objective was to tap into tier 2 and tier 3 towns to increase both the value and the volume
of sales of hand wash. Increasing brand equity and penetration into the new market was also
part of the long-term strategy. Instead of just creating awareness, which was evidently not
working, Savlon chose to do behaviour engineering.
Savlon chose to target children as it was easier to target those who had not yet developed any
preference or behaviour regarding handwash. Savlon chose schools in tier 2 and tier 3 towns
for campaigning. Savlon held campaigns in schools and distributed handwash in the form of
coloured chalks which would turn to foaming soap when mixed with water. Savlon also
brought affordable sachets to make it pocket friendly to people.
This resulted in Savlon having higher growth than all other competitors and increased its
market share as well as the growth in the sales of overall handwash market.

Insights:
- Knowing is not enough for customers to buy. Changing behaviour by giving a push in
terms of behavioural change is needed
- Being a new entrant does not mean that competitive switch is not the only option but
there is still an option to develop a market of its own
- Advertising agencies must change their understanding of creativity

Conclusions:
Effective marketing requires understanding the behaviour of people and must try to directly
affect the behaviour of people rather than just create awareness. Behavioural engineering is
the key in making people use a product and get people hooked on to it. Sampling and low
cost option being provided for people to try a new product and sampling of products is a very
good strategy to alter consumer behaviour