Professional Documents
Culture Documents
Nmims Dec PGDBFM Assignments - 9967480770
Nmims Dec PGDBFM Assignments - 9967480770
COM
Sales Management
1. Design a Sales Process when your organization is intending to enter Kenyan Market (10
Marks)
2. How would you set up a sales organization (team) for a FMCG company setting up their
operations and having headquartered in Mumbai? (10 Marks)
3. Read the case ‘Levis India offers – Jeans on EMI’ and respond to these questions. While
answering questions you are free to make reasonable assumptions. Please state them clearly
In June 2009, apparel manufacturer, Levis’ Strauss India Pvt Ltd offered to sell its well-known
Levi’s jeans and other Levi’s products on equated monthly installments (EMI) payable through
credit cards. Analysts viewed this as a bid by the company to increase sales against the backdrop
of the economic downturn. The company planned to arrest its decline in sales through this
innovative offer. Analysts felt that the offer was the first such in the branded apparel industry.
On the launch of the scheme, Shumone Chatterjee. MD, Levi’s said – “it is for the first time that
a brand is offering this kind of deal in India. EMI has proven good for several industries such as
housing and white goods; therefore, I feel it will make a significant difference to the branded
apparel industry as well”.
The offer, launched as a pilot program, in Bangalore, was valid only for consumers who
purchased products worth Rs 1500 and above. The consumers had to settle the bill in three
instalments. The EMI’s were zero percent interest. Levi’s had entered a tie-up with ICICI Bank
to offer this scheme. In return, the bank received service charges from Levi’s for each
transaction.
Levi’s is the Indian subsidiary of US based Levi Strauss and Co. It sells denims jeans under the
brand Levi’s, a popular and aspirations brand of jeans in India. As of September 2009, Levi’s
operated through 230 stores and 500 points of sales in nearly 200 cities.
By launching the offer, the company planned to make the jeans affordable to consumers who
aspired to own the brand. Chatterjee added, “Many aspire to own a Levi’s but the price can be a
barrier. The EMI scheme makes it easier for the people to build the wardrobe with a premium
brand like ours. The company felt that it could make customers spend more by easily making
payments through installments. “the idea is to not only achieve high conversion rate (walk-in’s
conversion into spending) but also enable our consumers to spend more and purchase higher-end
denim through an easy mode of payment. If the EMI scheme works well in Bangalore, then we
can unveil this nationally in a couple of months”.
The company received a good response from customers. “ever since we introduced the ‘buy now,
pay later’ scheme with interest of hidden charges in June, our sales have surged by 10-15
percent” said Mr. M Aaron, franchise manager, Levi’s. From June 2009 to August 2009, almost
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half the buyers who had an ICICI card used the EMI facility. “The average value of their
purchase was 50% higher than those who didn’t use the EMI facility” added Chatterjee.
Encouraged by the response received by the scheme, the company announced its plan to roll out
the offer in eight cities other than Bangalore by mid-September 2009. These cities were Pune,
Delhi, Ahmedabad, Chennai, Hyderabad, Kolkata, Mumbai and Chandigarh. The success of the
program, prompted Levi’s to enter into tie-ups with other private banks such as HDFC Bank and
Axis Bank. He criteria for usage of Axis Bank credit cards was that the bill amount had to be Rs
5000 and above.
Some analysts felt that it was logical for the Levi’s to offer the scheme through credit cards since
there was tremendous potential to be tapped in the Indian market, but they noted that the number
of credit card holders in India was less than that of developed countries. According to a report by
BankRate.com, only 28% of affluent Indians have credit cards, a fraction of the average around
the world. As of 2006, credit cards accounted for just 1% of all purchased in India – one of the
lowest percentages in the world The offer launched by Levi’s received a mixed response from
Industry observers, customers and analysts. Customers appreciated the scheme offered by Levi’s.
According to Roger, a customer, “it helps the consumers and the companies too. Recession has
affected both the companies and the consumers, so it’s a win-win situation for both of them,”.
However, the company maintained that the promotional technique was not a strategy to counter
the effects of the economic downturn. The company said that it was aimed to tap the tremendous
market potential offered by the organized retail market in India. As of August 2009, the Indian
organized retail market was just 4-5 percent, out of which 20% accounted for apparel and
lifestyle, thus offering scope for growth, according to Levi’s.
According to Sanjay Lalbhai, CMD of Arvind Mills Ltd, “we have never offered such schemes
and I don’t think it has been tried anywhere in the world, unless you have a very loyal customer
base and are sure of their credit worthiness. It will be interesting to observe how they are doing
it”. On the other hand, some experts felt that though this scheme might attract the masses to
Levi’s initially, in the long run, it might lose some premium customers since the branded
products would be affordable to most other sections of society.
a. Critically analyze Levi’s offer to sell its Levi’s brand of jeans and other products on EMI (5
Marks)
b. What was the overall objective of this plan? Do you think the company will succeed? (5
Marks)
Procurement Management
1. Explain what is Ethics in Procurement & why it is important? You are a Procurement Head of
Consumer Product organization, explain any 4 ISM Standards & link with mention industry
scenario. (10 Marks)
2. You are part of Pharma Company who has grown immensely during Covid times. Your
company is planning to set up two more plants for manufacturing of vaccinations. As
Procurement Manager help them to evaluate between leasing or buying two factory premises.
Please support your answer with reasoning & mention advantages of selected option. (10 Marks)
3.a. Oftenly we hear debate that Purchase Requisition is whose responsibility? What do you
think? Explain Purchase requisition and its types. Why PR is one of the critical steps of P2P
cycle? (5 Marks)
3.b. What are various types of Pricing Contracts; why they are used? Explain types, sub types
and difference between them in terms of responsibility of buyer or seller. (5 Marks)
Warehouse Management
1. You are working as an assistant intra consultant for Pharmaceutical Company. The company
owns a warehouse from last many years and due to COVID 19 company is planning to expand
and automate the existing warehouse. As a consultant advises the organization to redesign the
warehouse that ultimately improves efficiency. (10 Marks)
2. Consider above mention scenario (check Q1) and share your opinion as on the below:
How an organization can create a competitive advantage in warehouse management? (10 Marks)
3. ABC Ltd. is manufacturing two wheeler scooter from last ten years. Company is planning to
start new manufacturing set up for E scooter. The organization has hired you as an assistant
intra-warehouse consultant to take better decisions.
a. Suggest organization various factors while selecting the location of the warehouse. (5 Marks)
b. Explain top management of organization regarding important warehouse design criteria. (5
Marks)
Consumer Behaviour
Read the case below and refer books and news articles to answer the questions below the case
from the consumer behaviour perspective
Nestles Maggi: The consumer warfare
In early June 2015, Paul Bulcke, Nestlé S.A.’s global chief executive officer, took an urgent
flight to India, having been advised that one of the company’s highly popular brands, Maggi, was
banned from its second- largest market. The issue was further aggravated when the ban spread to
India’s neighboring countries, Singapore and Nepal. Food safety agencies of various developed
countries, including the United Kingdom, soon became concerned. India’s food regulatory body,
the Food Safety and Standards Authority of India (FSSAI), labelled Maggi as unsafe to human
health after samples showed excess levels of lead and monosodium glutamate (MSG). Following
considerable outrage over food safety fears in India, Nestlé withdrew the entire stock of the
product that had been distributed at retail channels across the country. Nestlé persistently
claimed that the product was safe. However, the decision to recall the product was made to retain
consumer confidence, as noted in a press release issued by the company:
The trust of our consumers and the safety of our products is our first priority. Unfortunately,
recent developments and unfounded concerns about the product have led to an environment of
confusion for the consumer, to such an extent that we have decided to withdraw the product off
the shelves, despite the product being safe.
The stock recalled from the market was worth ₹2.1 billion, with an additional cost for materials
valued at
₹1.1 billion, affecting various stages of the supply chain. In terms of business share and
potential, Nestlé had no way of avoiding the product line’s impact on its portfolio in the Indian
market. Nestlé’s management team was busy drafting a new business strategy to relaunch its
highly popular Maggi brand. Etienne Benet, then managing director of Nestlé India, stated, “We
are determined to resolve the Maggi noodles issue in the best possible way. We will return
Maggi to its rightful position as ‘the most trusted food brand in India.’” The management team
was grappling with an improved re-positioning strategy to help retain its market share in India.
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Nestlé also wondered what critical role pricing would play in influencing consumer purchase
decisions during Maggi’s proposed relaunch.
THE MAGGI CRISIS
In India’s largest state, Uttar Pradesh, standard testing of Maggi samples revealed excess
quantities of lead and MSG. The state directed the inquiry to the FSSAI and they confirmed the
allegation. The FSSAI stated, “We have tested Maggi samples at Kolkata's referral laboratory.
The test results show that there are added monosodium glutamate and excess of lead. We have
ordered further sampling.”7 The product was found to contain 17 parts per million (ppm) of lead,
which exceeded the permissible limit of 0.01 ppm. Nestlé refuted all claims, asserting that the
lead content in the product was actually less than 1 per cent of the allowed limit. The Nestlé
spokesperson said,
We do not add MSG to Maggi Noodles, and glutamate, if present, may come from naturally
occurring sources. Food regulators in India also do not specify any limit for the presence of MSG
[and/or] glutamate. We are surprised with the lead content supposedly found in the sample. We
monitor the lead content regularly as part of regulatory requirements, and tests at our own
accredited laboratories as well as those by independent, external-accredited laboratories have
consistently shown the results to be well within the permissible limit.
Losses
The controversy caused both tangible and intangible losses for the company. Nestlé India
incurred a direct loss of 20 per cent revenue due to the Maggi ban and nationwide recall.
According to Brand Finance, the brand value of Maggi was anticipated to fall by approximately
₹13 billion. Nestlé’s stock fell by 15 per cent, resulting in a market capitalization loss of ₹100
billion. However, analysts anticipated that the company would rebound very strongly with full
volume recovery within a year. In addition, brokerage firms also predicted a sharp comeback on
stock values. One analyst suggested, “Nestlé stock is a good long-term buy for investors as
fundamentally the company has some great brands that give earnings growth visibility and cash
flows.”
The recall had an impact on the entire value chain. It affected all direct and indirect stakeholders.
The 1,500 permanent employees directly involved with Maggi production were temporarily
shifted to training activities and trade building exercises. Suppliers who had strong dependence
on Nestlé were exploring the prospect of new customers. One supplier stated: “We were
supplying around 200 tons of spices per month to Nestlé. That has been affected. Now, we are
trying to find new customers, and in future we would try to reduce large dependence on a single
client.”
To recover all kinds of losses, it became imperative for Nestlé to design a comeback strategy.
The relaunch strategy would require a focus on re-positioning, pricing, and other operational
issues. It was highly likely that such a crisis could extend to other product lines or brands and
also spread to different continents at any stage of the business life cycle. Nestlé needed to take
various proactive measures to ensure that this major crisis would not be repeated at any point in
the future.
THE ROLE OF PRICING
In 2014, Nestlé recorded its slowest sales growth in the previous five years. The Maggi recall
had further spread the negative publicity among buyers. Bulcke admitted that “consumer trust
[had] been shaken.” India was the second-largest market for its Maggi brand. The Swiss food
giant confessed that “India is important to Nestlé,” and that it would strive to sustain its customer
share in the Indian market.
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With respect to marketing, pricing could directly influence consumer purchase behaviour. The
impact was expected to be even more significant when relaunching a product that had suffered a
major market share loss due to a product recall. To use pricing as the centre of the comeback
strategy, it was essential for Nestlé to achieve excellence at meeting the ideal product and market
level. The strategy required managing the trade-off between benefits and price. A value map was
the ideal tool to provide a snapshot of how consumers perceived that trade-off. All competing
brands needed to be mapped, including Sunfeast, Bambino, Top Ramen, private labels, and other
local brands. The exercise would provide useful insight for the decision-makers to formulate a
strategy that could achieve ideal pricing at the best product and market level (see Exhibit 1).
The increased demand-versus-supply gap created by the Maggi incident benefitted Patanjali
Ayurveda Limited (Patanjali), India’s fastest growing Ayurvedic company. The company had
numerous product lines to diversify its business, so it was easily able to enter the noodles market.
The product would be sold through the vast distribution network of Future Group, India’s major
retail chain. The promoters of Patanjali’s Atta Noodles claimed that the upcoming product would
be superior to Maggi, but would be sold at only
₹15, compared to ₹25 for an equivalent size of Maggi.
Of the many possible strategies at its disposal, Nestlé concentrated on three key options to re-
enter the Indian market: increase value with the same prices, increase value with lower prices, or
increase value with higher prices. Undoubtedly, Maggi would increase both tangible value
(making the product safe for consumption) and intangible value (promote awareness through
effective labelling). As Nestlé prepared to relaunch its product with enhanced value,
management was concerned about the decision over new pricing. Anticipating the customer’s
response to the price change, the core team was busy pondering various factors that would
influence the market’s response to a change in pricing.
THE URGENCY FOR A COMEBACK
Emerging economies already contributed 43 per cent of Nestlé’s overall revenues and were
expected to further increase that share. Changing consumer lifestyle in emerging economies had
increased demand for packaged food, whereas buyers in developed countries preferred fresh
foods. In 2014, sales in emerging markets were growing at 8.9 per cent as compared to only 1.1
per cent in developed countries. With changing consumer tastes in Europe and China, Nestlé
concentrated more of its focus on India.
In 2014, Nestlé reported US$623 million in sales of Maggi noodles, table sauces, and other
products in India. The brand name Maggi became interchangeably used to refer to noodles in
India. India’s ₹40 billion
noodle market had many players, but Maggi controlled 63 per cent of the industry (see Exhibit
2). A 2014 consumer survey declared Maggi one of the five most trusted brands. Future sales
forecasts revealed a growth rate of 50 per cent by 2019 against base figures in 2014 (see Exhibit
3).
Therefore, resolving the current Maggi crisis was of extreme importance to the Nestlé
management team. The senior leadership team was confident that it could regain its market status
as one of the most trusted and preferred brands in India. The relaunch strategy needed to be both
effective and timely to retain control of the market, which was threatened by Maggi’s main
competitors including Patanjali (Patanjali Atta Noodles), ITC Limited (Sunfeast YiPPee!
Noodles), Nissin Foods (Top Ramen), and Hindustan Unilever Limited (Knorr Soupy Noodles).
Nestlé’s international market was also a concern. Indian-manufactured Maggi products were
directly exported to Canada, the United Kingdom, Singapore, and Kenya, and sold through third
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parties in the United States, Australia, and New Zealand. Regaining these markets after a long
absence could become a very difficult task.
THE EXISTING POSITIONING
All previous promotional campaigns for Maggi had consistently communicated a sense of
happiness. Some of Maggi’s most successful projects in India included the following three
marketing campaigns.
Me and Meri Maggi
In 2009, Nestlé India launched the highly successful “Me and Meri Maggi” campaign. It was
launched to celebrate 25 years of Maggi’s presence in India. The rationale was to bring
consumers closer to the Maggi brand. Children who had grown up with Maggi as a regular food
were now adults, and some of them had unique stories to tell. People were asked to share their
memorable stories on any topic involving Maggi, such as “Maggi on a Road trip.” The campaign
was a resounding success with over 40,000 stories submitted by devoted Maggi customers. The
heartfelt stories included some emotional and private moments involving Maggi (see Exhibit 4),
and the 50 best stories were printed on Maggi packaging. The project also asked customers to
submit filmed stories, of which three were chosen to be featured in Maggi advertising
commercials. The marketing group that managed the project for Nestlé was overwhelmed by the
response, as they noted:
We realized that there [was] a huge cluster of Maggi stories that were adventurous, naughty, and
romantic. This gave birth to the three flavours: the adventurous stories inspired a spicy flavour
that we named “Thrillin’ Curry,” the naughty stories inspired a khatta meetha tomato flavour that
we named “Tricky Tomato,” and the romantic Maggi stories inspired an aromatic capsicum
flavour that we called “Romantic Capsica.” The television commercials were consumer stories,
one picked from every respective cluster that best represented the mood.
Meri Maggi: Two Minute Mein Khushiyan
In 2012, Maggi extended the earlier stories campaign and positioned Maggi as a source of
happiness for its customers. The idea behind the extended campaign, named “Meri Maggi—two-
minute mein khushiyan,” was explained by the marketing group as follows:
The idea really came from the simple insight of how Maggi noodles delivers joy to consumers
across India and the love that they have for the brand. Whenever you think “two minutes,” you
think of Maggi. And Maggi is all about “khushiyan” [happiness]. Put the two together and you
have a simple, relevant- to-the-brand idea of “two minutes mein khushiyan.” With this idea, we
re-emphasized the brand’s evolution from a functional two-minute proposition to an emotional
two-minute proposition.
#HealthyIsEnjoyable
The launch of Maggi’s new product variation “Oats Noodles” brought together “brities”
(celebrities) with Maggi in selected advertisements. Madhuri Dixit Nene, a famous Bollywood
star, positioned the new variant as a morning breakfast alternative. The campaign leveraged the
power of social media to reach to its potential buyers. The campaign ran a selfie contest using the
Twitter hashtag #HealthyIsEnjoyable (see Exhibit 4).
Questions:
A New Positioning Strategy for changed consumer behaviour
Maggi’s recent safety controversy required a complete overhaul of the value communication
strategy in an attempt to regain the market position that Maggi had enjoyed for many years in
India. Health and safety had become the key values to communicate to its customers.
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1. How would Nestlé convince its stakeholders that the relaunched Maggi was completely safe
for consumption and healthy for all consumers? What strengths, including media
sources and celebrity endorsements, could Nestlé draw from to effectively motivate customer
behaviour? (10 Marks)
2. Reading the case above suggests the segmentation, targeting, and positioning Nestle Maggi is
trying to achieve. (10 Marks)
3. Given the growth potential of the industry, changing consumer preferences towards healthy
products
a. Discuss the traditional / modern day advertising strategies should Nestle Maggi use as a brand
be following to remain a market leader (5 Marks)
b. Discuss how the use of the traditional or modern-day advertising strategies can help build the
motivational factors of buying different variants of Maggi be persuaded by the tweens lifestyle (5
Marks)
Retail Banking
1. Retail Banking is a prime arm of banking for building up and grow its resources side. What
does this mean and what are Banks doing towards growing its resources side? Name any 4
resources-side products that Banks provide and explain their characteristics in terms of product
nature, its classification & benefits and cost benefits for Banks
(10 Marks)
2. From an era of the past when ‘Customer went to the Bank’, Retail Banking has transformed
itself to today’s era when ‘Bank goes to the customer’. Explain your understanding of this
transformation along with examples of ways and means adopted by Banks towards achieving this
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transformational change. Also, explain any 4 of the mechanism / tools used by Retail Banks in
this regard along with merits and de-merits in each of them (10 Marks)
3. “Bank Traditional Limited” is a well-established old Retail Bank operating in India and is
almost a 100-year-old Bank. Its customers are predominantly individuals who are senior citizens
(65 years old) who are comfortable only with traditional modes of banking like branch banking,
using paper cheques, etc. However, in the last few years, this bank had embarked on various
technology projects / initiatives like ATM, internet / mobile banking, PoS, kiosks etc. due to
various business and operational compulsions.
a. Analyze the various challenges that ‘Bank Traditional Limited’ will have to manage
(5 Marks)
b. Analyze the various steps, ways and means this Bank must adopt to manage this necessary
transition (5 Marks)