Background investigation of the case

Electro product limited is a manufacturer of small home appliance. It is located on a semirural area of
Czechoslovakia. This organization started journey from 1943. EPL is a renowned electrical home
appliance producer in eastern and Western Europe. Significant portion of EPL production is being
exported in European based international electronic manufacturing and marketing firm LIEM. Under an
exclusive agreement, EPL is responsible for manufacturing hand held vacuum cleaner for LIEM. LIEM
marketed these products under its own brand name in western markets. EPL had an exclusive rights to
market the product domestically under an own brand name -‘ZETA’.

In 1989, a huge political and economical change in Czechoslovakia makes a new emerging competitive
domestic market .Than EPL starts to look for an opportunity in its domestic market. However, LIEM was
also actively looking for market opportunity in EPL’s domestic market. Now, EPL faces with several issues
that may potentially evolve into major confrontations with LIEM. Mr. Novak, manager of marketing and
marketing analysis of EPL wants to develop a co-operative relationship with LIEM. But LIEM
management is not interested and is ignoring such activity.

Before 1989, EPL was a small marketing group. Until recently, this group had no any big role in EPL
strategic management. Under the current leadership of Mr. Novak new marketing concept is growing.
EPL wants to take a good position in the domestic market and also in European market. So, new three
objectives are developed to generate new opportunity for entire firm.

1) Developing an efficient domestic distribution and sales network for its own product.
2) Increasing the co-operation with foreign firms in area of product development.
3) Improving the overall image of its brand name ‘ZETA’ in Western Europe.

Acting as Mr. Novak, manager of marketing and marketing analysis EPL faces some critical situations for
the agreement with LIEM. The agreement with LIEM has some good point-

1) It helps EPL to understand product development effort in the context of large firm.

2) It assures the future revenue.

After 1989 the relationship with Alfa change significantly .ALFA establish a new unit for EPL export.
Before 1989 alfa was a state owned restricted company. Now there is some chance to develop a strong
co –operation with ALFA .
 SWOT Analysis of EPL in current prospective -

Strength Weakness
1) Few knowledge about customer, distribution
and export process

1) Experience since 1943 in production of home 2) Poor language efficiency.

appliance.
3) Not so brilliant role of marketing department in
2) Strong technical efficiency. strategic management.
3) Quality product producer

4) Recent good relation with ALFA

Opportunity Threat
1) 1989’s economical and political change in 1) Contract with LIEM
Czechoslovakia
2) LIEM enters the domestic market
2) Western Europe demands higher quality 3) Domestic market is more competitive
product

3) Enough ability to develop

Own brand ZETA.

Strategic Marketing analysis :

Key challenge:
The time is changing, survival is tough. Domestic and foreign market is now a big issue for EPL .In this
context EPL has to focus on their own product development and brand. Creating a good sales network is
also a necessary steps .The agreement with LIEM is a threat to our company. After 1989 a new
relationship with ALFA creates a good export environment.

So new strategic marketing decision is:

1)Re-positioning & development of brand ZETA .

2)New product development & existing product development .

3)Develop tha sales network with ALFA.

Thinking big

Thinking impossible

and making it happen

Developing the brand ZETA in western European market:

Working as a marketing team we believe that without strong brand positioning no one can survive in a
competitive domestic and foreign market. Se we focus on development of our brand ZETA .we are
changing logo with some promises we want to serve the customer. Good product quality with innovative
technological idea is our main asset.

Previously EPL have tha experience to develop tha product and produce for western European .western
Europe demand high quality product. Economical, political change in chezeslovakia open a big
opportunity in business. so now it’s a perfect time to develop its own brand ZETA.

Devloping a good brand is not a easy term .

Branding Basics – Touch points Are Key to Building a Strong Brand

Customers experience in brand in numerous ways: products, packaging, price, marketing, sales
personnel, etc. Each of these contacts or touch points molds the customer's impression of the brand.
Some of these touch points are obvious, like product performance, and one-on-one customer
interactions. Other touch points, such as the product manual, monthly statements or post-sales support,
may be subtler in their brand effects.

1. Identify ZETA ‘s reasons-to-believe.

ZETA ‘s promise is irrelevant if our customers do not believe it. Therefore, our promise must be
supported by reasons-to-believe. This will automatically add substance to the promise and define
specific expectations for the customer.

.2. Identify customer touch points.

Each individual step in business process contains a number of touchpoints when the customer comes in
contact with ZETA . our ultimate goal is to have each touchpoint reinforce and fulfill our marketplace
promise.This comprehensive trace of our marketing, selling, and servicing processes will allows us to
create a simple touchpoint map that defines our customers' experiences with ZETA .

3. Determine the most influential touch points.

All touch points are not created equal. Some will naturally play a larger role in determining EPL’s overall
customer experience. To determine the touchpoints driving tha customers' overall experience, We can
use a wide array of techniques ranging from quantitative research to institutional knowledge. The
methods we use will depend on the complexity of our products, commercial processes, and our existing
knowledge base.

4. Align the organization to consistently deliver the optimal experience.

A holistic approach to aligning EPL’s to consistently deliver the optimal experience is essential. Identify
the people, processes, and tools that drive each key touch point.
B randing Basics -Create a Great Logo and Tag Line

Logo design :

 has a strong, balanced image with no little extras that clutter its look;

 is distinctive and bold in design, making it easy to see at a glance;

 has graphic imagery that looks appropriate for your business;

 works well with your company name;

 is done in an easy to read font;

 communicates your business clearly; and

 looks good in black and white, as well as in color.

We design a new Lego for ZETA

To successfully position ZETA above our competitor’s continuing fight for our customers, We must
develop a brand proposition that when conveyed in marketing and advertising campaigns, will provide an
attractive, unique, and relevant message to current and potential customers. In addition, this proposition
must be realized and consistently echoed by senior executives, customer support, R&D teams, marketing
staff, sales staff, and strategic partners.
Being heard amid the roar of our competitor’s voices is a daunting task in today’s crowded marketplace.
We find this to be shockingly true each time we read a magazine, watch the television, or surf the web. As
a result, businesses are now seeking new and more effective ways of increasing brand awareness and
more importantly, create brand loyalty. One of the most important tasks involved in ensuring a brand’s
success, is to develop an effective branding strategy. 

Successful Branding of ZETA

However brand development is by no means a new idea, today consumers have more access to
information and more choices than ever before. The result is higher expectations, and the ZETA’s
message must captivate the consumer immediately. Companies seeking to experience long-term success
will have to create the most compelling, relevant, and consistent brand experiences for their customers.

In order to successfully develop the most effective branding strategy, a firm understanding of what a
brand is must first be answered.

The Brand Is Everything

Scott Bedbury is a leading branding consultant that has worked closely with companies like Nike and
Starbucks, has written a book titled, “A Brand New World”, published by Viking Press. In it he gives
excellent thorough definition of what a brand is.

“A brand is the sum of the good, the bad, the ugly, and the off-strategy. If is defined by your best product
as well as your worst product. It is defined by award-winning advertising as well as by the god-awful ads
that have somehow slipped through the cracks, got approved, and, not surprisingly, sank into oblivion. It
is defined by the accomplishments of your best employee-the shining star in the company who can do no
wrong-as well as the mishaps of the worst hire that you ever made. It is also defined by your receptionist
and the music your customers are subjected to when placed on hold. For every grand and finely worded
public statement by the CEO, the brand is also defined by derisory consumer comments overheard in the
hallway or in a chat room on the Internet. Brands are sponges for content, for images, for fleeting feelings.
They become psychological concepts held in the minds of the public, where they may stay forever. As
such you can't entirely control a brand. At best; you only guide and influence it.”

The Brand’s Creed

The development of a branding strategy must begin with identifying the brand’s core values. These are
qualities which an organization deems most important. For instance, an organization or business may
identify its

core values to include:

honesty,
 integrity, excellent communication,

and client satisfaction.

Though these values are usually never revealed to the public, they are evident in every aspect of the
organizations’ business routine, from customer service, to direct marketing, to website design, to
teleconferences, to the treatment of its employees and strategic partners. This conveys a consistent
perception to the target audience in every medium of communication that is used.

Consideration for these values should not be taken lightly for these values represent the “creed” for the
business and become the cornerstone for developing the brand’s proposition. And though the brand’s
proposition may change from time to time, the brand’s core values should never change.

The Target Audience Holds the Keys to EPL’s Brand’s Success

This information should be as comprehensive and exact as possible. Applicable factors such as; age,
gender, income, and shopping habits (online and off) are good places to start. Of course if our target
audience is another business, our research will involve different factors.

The western Europe country’s people our main target audience :

  Austria

  Belgium

  France

  Germany

  Liechtenstein

  Luxembourg

  Monaco

  Netherlands

  Switzerland

Truly understanding our target audience, in addition to having a realistic assessment of what our product
offers, is invaluable in assisting you in the development of a successful brand proposition. This
information will also provide insight into how to convey this message in an engaging, relevant, and
consistent manner.
Some questions to consider during this process are:

who is EPL target audience

what does the target audience currently need and desire?

What does EPL competitor currently offer?

How does our products/services fulfill this need better?

What needs or want may be fulfilled by our product or service that isn't currently being offered to them?

If EPL competitor offers a similar product/service, how is EPL’s better?

Do EPL advertising campaigns provide a more engaging, unique, and consistent message than those of
your competitors?

Developing a Brand Statement (Brand Proposition)

From the research, development of the brand statement, often referred to as a brand proposition,
commences. The brand statement is a promise. It states that if you use our products, we promise that this
or that will occur.

ZETA s proposition must be clearly understood, engaging, presented in the right context for relevancy,
and offer a solution to the target audience’s current wants and needs.

“NEXT GENERATION “ INOVATION NAVER TASTED SO GOOD

The brand’s promise is easy to understand, engaging, unique, relevant (to the target audience), and
consistent.

A Promise Is a Promise ( NEXT GENERATION )

Of course all of these promises are just that, promises. If the company’s products, services, and customer
support didn't support these promises, the initial surge of new customers would quickly come to a
screeching halt and the brand would fade into obscurity along with the company.

Providing a Brand Proposition that is engaging, is easily understood, and offers an emotionally positive
solution to needs and desires only serves to enhance the current customers’ perception of the brand and
will get new customers to look your way. Following through with an excellent product/service and
customer support will put an indelible mark in the memory of your existing customers; one that will create
brand loyalty through good and bad times; a sure sign of a brand’s strength.

Deliver the Unexpected

When developing a brand proposition, never let the brand’s promise be one that is already expected; this
is a sure way to NOT stand out from our competitors. Advertising efforts that utilize adjectives like “good”,
or “nice” are sure to fail when seeking to be both engaging and unique.
AIRGUN failed? Just get a ZETA --- INOVATION NAVER TASTED SO GOOD

ZETA next generation vacuum cleaner advertisement.

Winning their Hearts and Minds

An important aspect of brand development is to create a positive emotional attachment to the brand which
creates a response in its audience without the audience seeing the product or directly experiencing the
service..”

Positive emotional bonding comes from a mutually beneficial relationship built on intrigue, trust,
understanding, and support. These are qualities that often separate colleagues from friends, and friends
from family. Build your brand promise on the basis that your product will deliver positive, relevant, and
unique emotional qualities.

New product development & existing product development:

EPL current product line:

Blenders

Dry flat irons

‘’We're obviously going to spend
Food mixer a lot in marketing because we
Heting element dometic use think the product sells itself.”

Roasting event Jim Allchin

Steam iron
Warm air ventilator
Vacuem clenear
 Total production
50
45
40
35
30 Total production
25
20
15
10
5
0
vacuem clener dry iron

Vacuum cleaner and dry iron accounted for a total 56 percent of all production .vacuum cleaner
accented for 68 percent of overall export and dry iron for 24 parent : all remaining product produced by
EPL accounted for only 8 percent.

Existing product under a brand name ZETA

 vacuum cleaner

DRY iron

This device can convert 75% of sun’s energy which

is significantly more than PV cells and other devices.

For a new emerging domestic and foreign market EPL have to concentrated on new product
The device is essentially a sealed box which acts as a
utility scale solar thermal plant. Green AC’s can help
development :
reduce the power consumption to a great extent since
16% of energyeco
Solar powered is consumed by cooling
friendly systems.
Air conditioner
The device functions in a similar manner as that of
natural gas cooling systems. First water or oil in a
sealed tube gets heated to 220 degrees Celsius. This
heat is then used to warm a solution containing some
• Thise new poduct will open a good market in
refrigerants. The refrigerants boil away. The solution
western Europe .
and refrigerants are later reunited, and are used to
cool the room. After that the mixture is pumped back • Switzerland, Austria now more aware about
to the same cycle and the cycle repeats again. envermental change
Moreover it does not need much maintenance. So
• People are now more aware about energy saving
basically a device with fewer hassles and which helps
and carbon emission.
us save lot of money in AC electricity
bills.Measuring just over 3 meters by 1.3
metres, Chromasun contains mirrors, receivers
and a concentrator, plus silicon solar cells.
D evelop sales network with ALFA :

EPL have to establish a efficient marketing chanel .ALFA a state owned company previously handled all
foreign contct and domestic distribution of EPL. After the change of 1989 LIEM appear as a competitor
in the domestic market .in thise critical situation a close relation of ALFA will help us to export &
distribution of our own brand –ZETA in western European market

A marketing channel system is the particular set of interdependent organizations involved in the
process of making a product or service available for use or consumption. EPL should establish a
complete sate of marketing chanel

Push strategy for low brand loyalty: EPL should uses sales force, trade promotion, and other means
to persuade intermediaries to carry, promote, and sell the product to end users.

Steps for a push strategy

 Applied to that portion of the supply chain where demand uncertainty is relatively small

 Production & distribution decisions will be based on long term forecasts

 Large and variable production batches

 less expenditure on advertising .

EPL ‘s value network:

EPL have to create a system of partnerships and alliances that a firm creates to source, improve, and
deliver its offerings. value network includes a firm’s suppliers and its suppliers’ suppliers, and its
immediate customers and their end customers.

Key suggestions to Top management:

The agreement with LIEM should need to review

Take efficient steps to strengthen employee language capability

Assure a significant role of Marketing department in strategic decision making

Strengthen the research and development department for new technology

Create co operation with ALFA

C onclusion:

Business is for profit. And the business world changing rapidly in a dramatic way . EPL have to match
with his new market reality. The big changes in 1989 change everything. It’s really hard to survive in a
competitive market. So there is no option without building a strong brand .The re- positioning of ZETA
will help the firm to create revenue from domestic & foreign market .the LIEM agreement is now a big
threat for entire firm however the contact assure future revenue . we believe “thinking big thinking
impossible and making it happen “.we want to survive we want to compete with big marketing
reality .cancellation of LIEM contact may be financially harmful but our more concentration in product
development and in ZETA will give us hope .the state owned firm ALFA want to help us in export and
also in distribution. Its time to make a move for a bigger prospective.