INDIAN INSTITUTE OF MANAGEMENT, ROHTAK

PGP 11
Mid Term Exam (Term III)
Marketing Management II
(MM II)

16.02.2021
MM -

Name: Anadi Chaturvedi

Roll No: PGP11005

Marks Secured:
(In figures & words)

Question No. 1 2 3 4 5 6 7 8 9 10
Maximum Marks
Marks Scored

Examiner’s Signature
 Please write in given space only

Ans 1

Govin Gardens has till now used traditional retail stores to sell their products
with the help of their distributors but with their new Marketing Manager Heinz
Schott, they are planning to tie up with Modern Discount Stores like Walmart
and Carrefour in order to increase their sales and hence their market share in the
coming future.

The Traditional Retail owners may not be happy with this strategy as this will
impact their sales esp. in places where these Modern Trade Stores are present.
But they need to realize that any company who wishes to expand their business
need to be present in as many locations as possible. Also, we know that these
Modern Trade Stores provide only 10-15% of the business for any company
while the majority stake is provided by the Retail Store Owners.

In order to avoid conflict from retail store owners, Govin Gardens may launch a
new product specially for Modern Trade Stores or may launch a product with
different price range which will ease of the competition and the issues with the
retail outlets owners.

Another major issue can be, since Govin Gardens, through these traditional
retail stores provide pre-sales and after sales services, these store owners would
not want to provide these services when they are not earning the margins from
the sale.

Mr Heinz can try the following two things in order to tackle the above issue –

1. He may talk to these retail store owners and provide them incentives on
the no. of after sale services they provide for the products not sold by
them. This will cover the cost of travelling and time spent by the
technicians on these buyers and hence will provide a motivation for the
retail shop owners to provide these services.
2. Initially, the company can set up technical teams in the major cities where
their sales are high. Pre-sales advice can be given by the In-Store
Promoters while the After-Sale service can be taken care of by the
company’s technical staff. This will help in not involving the retail store
owners.

These 2 changes will help the company deal with any kind of conflict that may
arise by the traditional retail store owners and make things easier for Govin
Gardens.
Ans 2

Cisco, a tech giant, has a global reach and operations in various regions
round the world like Europe, America, APAC etc.

Cisco’s distribution channel in the 1900s is a mix of 3 types of indirect

intermediaries consisting of Partners, Resellers and Service Providers. Their
main characteristics are as below –

• Tier 1 partners are those who integrated the Cisco products with
technology from other firms to provide complete solutions to end user.
Eg. Accenture, Oracle etc
• Tier 2 Resellers get Cisco products from distributors and would sell it
to the end users. There were thousands of Resellers in particular
geography
• Service provider partners were telecommunications firm who supply
Cisco equipment to their customers to help them ease of the
management burden.

Cisco has sales force that works hand-in-hand with these partners to reach
the customers. They are classified in 3 categories – Gold, Silver and Premier
based on partner investment in securing capabilities to provide value to end-
user consumers. Their incentive plan was also divided on the basis of 3
categories – VP, SIP and OIP.

There are a few shortcomings in their distribution strategy –

• Cisco’s salesforce was working with the channel partners’ salesforce.

This could lead to issues in future when there is difference in opinion
between the 2. During times of Sales Target pressure, the sales team
will not be able to handle pressure and different expectations from the
2 sides.
• The incentive classification was done on the basis of the investment
by the partner rather than the revenue earned. Someone with lesser
revenue earned for the company could earn more incentives and this
could lead to issues amongst the sales teams and demotivation at
times. Also, small partners working harder would also get demotivated
and may stop pushing the product to their customers in future.
• 85% of their total revenue is coming from their Channel Partners.
Hence, they have a high dependency on them and so they need to be
well planned in case any difference in opinion arises. Cisco should
also plan to decrease this number slowly in future.
 Ans 3

Red Bull has been famous for its Non-Traditional ways of Marketing, from
sponsoring sports events and music concerts around the globe to making top
sports stars their brand ambassador they have ticked all the right boxes of
Non-Traditional Marketing Tactics.
Red Bull recently bought a football club in Germany and renamed it as RB
Leipzig and even though being a new club in the league, they have made a
big name for themselves, challenging for various titles and competing with
Bayern Munich.

Red Bull is the one of the few FMCG companies that ties up with colleges
and makes selected students their Brand Ambassador. These Bas then help
Red Bull market their products in all the college activities from small to big
events thus increasing their capture.

The only negative point of such Non-Traditional Campaign is that the Red
Bull is failing to capture 2 types of audience –

• Non-Adventurous and Non-Sports Liking – People who are not found

of these activities are not excited by all the campaigns that Red Bull is
doing.
• People above the age of 25-26 years – Red Bull is not capturing the
older generation who are the working-class audience, as they do not
get much time to watch sports or attend such concerts and events.
They can be a very good target market for Red Bull as people after
working tirelessly in their jobs, need to re-energize themselves and
having a Red Bull would be perfect way to end their day.

Red Bull’s Non-Traditional Ways have been working perfectly for them till
now and so they can continue with the same. They may try some traditional
ways like media advertising in order to capture the above 2 types of audience
that is being missed out currently.
Ans 4

Hierarchy of Affects Model tells us how Advertising affects the consumers

Buying Behaviour. It is divided into various steps -

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Cognitive
Awareness – Red Bull, through its unique Non-Traditional Ways of Marketing
creates awareness amongst its customers and makes them excited about the
product.

Knowledge – Red Bull ties up with various Sporting, Music and other
Adventurous Events in order to market themselves and make the customer learn
more about the product. Red Bull makes sure it is present of Social Media also
in order to capture the young generation.

Affective
Liking – Red Bull with its unique marketing tactics makes sure that it is liked
by its target audience, which is the Generation X and Generation Y. Since these
2 generations are thrilled by adventure and celebrities and they try to ape the
things they do or consume, Red Bull tries their best to partner with the right
event and brand ambassadors.

Preference – This is one of the most important stage for a company as many
customers influenced by the advertisements may go to the shop to purchase the
product and may end up buying some other product if they don’t remember the
right brand. This is the stage where advertisements and brand recognition play a
part. Red Bull with its easy to remember name, catchy slogan and unique
advertisements captures the customers minds and makes sure that they do not
forget their brand and prefer them over its rivals.
Conative
Conviction – Red Bull does a lot of free sampling, whether it is in music
concerts, sports events or college programs, places where the crowd will want to
re-energize themselves. This provides them the opportunity to make the crowd
consume their product and increase the chance of them buying it later on.

Purchase – After all the above steps, the final and the most important of them
all is Purchasing their product. Red Bull makes sure that they are easily
available in all types of stores – traditional stores, modern stores, and on e-
commerce platform. They also have made sure that there are different pack sizes
present for people wishing to buy more than just 1 can at a time.