ASSIGNMENT 2

COURSE CODE: ECOM531

COURSE TITLE: MANAGERIAL ECONOMICS
COURSE INSTRUCTOR: Dr. ANJALI SHARMA
TOPIC: CASE STUDY: MICHAEL INDIA PRIVATE LTD
DATE OF ALLOTMENT: 29th April 2022
DATE OF SUBMISSION: 14th May 2022
SECTION: Q2144 GROUP – N
STUDENT ROLL NO: STUDENT REGN NO: PEER RATINGS:
RQ2144B61 12109799 7
RQ2144B62 12109861 10
RQ2144B63 12109903 10

Learning Outcome:- A clear understanding of analyzing the situation

and deciding the course of action based on the theoretical aspects.
EVALUATION PARAMETERS:

1. Report on Case Analysis.

2. Presentation: Will Consist ;

a. Content
b. Confidence
c. Communication

3. Question Handling
Introduction

Michael India Private Limited

Michael India is a well-known multinational computer manufacturing company,

producing miniframes, mini computers and personal computers. Michael
Corporation had its head office in Santa Barbara, USA. An established name in the
market with more than 1,000 branch offices spread over more than 100 countries, it
has few competitors in the international field. However, in India it has only two
offices- one in Bangalore and another in Mumbai. The company just was making
an entry into the Indian market. The company knew that the market for miniframes
and mini computers was more restricted than that of personal computers. By 1992,
MIPL was the fourth largest seller of PCs in the market. MP Cletus, however,
wanted it to be the first or the second largest PC seller in India. For this purpose he
wanted to study the market carefully once more and strategize In order to achieve
his goal.
Problems of the case
  Minicomputer and miniframes marketing was more constrainedthan personal
computer marketing.In the case of minicomputers and miniframes, the
intended and target buyers were likewise different; they were institutional
buyers who were well-organized.

 Mr Cletus, Country Head of MIPL was confused whether to go for

Traditional Media or Electronic Media for the promotions.

 Market is targeted by several companies. Only five to six brands dominated

90% of the market. They always competing with one another. One of the
most difficult challenges for businesses is competition. And the competition
becomes even tougher if you are starting abusiness.

Solution of the problems

  Miniframes and Mini computers were not a preference for the Indian people
this is known by Mr Cletus before when he was thinking to enter the India
Market. The Miniframes and Mini computers buyers were institutional
buyers who were well organized at the time the Personal computer buyers
were individuals who were more dispersed and lacked awareness. But to
increase the sales of Miniframes and Mini computers the Promotional
strategy should be used to make people much aware about it.

 Mr Cletus had to choose between Traditional media or Electronic media, but

when we are talking about the ninetees as it was told that Electronic media
was to be used by Housewives, children and retired people much so an
aggregate of 70% needs to be go with the electronic media but for working
employees Traditional media should be used as they might not have that
much time to watch TV, but they initially had to go through the newspaper
to stay aware about the business news.

 Oligopoly can be clearly seen in this problem as there are few sellers in the
market who are clearly dominating the market and there are very few
chances of a small firm to enter into the market a make a place for yourself.

Questions for Discussion

  What kind of market exists for computers in India? Describe its features.

 As discussed in the case Perfect Competition exists in the above case

as there are many buyers and sellers, the market that exists in India
was of personal computers only, not for miniframes and mini computers
as people were not very much aware about it, Which was an restriction
faced by MIPL before entering into the India Market.

 Features:-

 Identical Price
 Many sellers and buyers
 Identical Products

 Given the market structure, do you think it is natural to have the discussed
price behavior? Discuss.

 Yes it is natural to have the discussed price behavior as there is Perfect

competition in the market as there are many buyers and sellers of a
product, each too small to affect the price of a product, hence all the
sellers price are identical so the only few things that could help in the
increase of sale will be promotion or adding new features in the product.

In this case study, the market segmentation and the strategies were lacking to
effectively introduce and show the product in the marketing world, we will get into
promotional strategy that will generate leads continuously and improve the market
value of MIPL.
 As a start the firm should focus on the beginning of planning with simple strategies
and ideas

 Target audience: We have also find that MILP has its idea about the target
audience which were Retired officers, Housewives, Children and also office
executives, They have to run through complete steps of monitoring their
preferences and which option they would choose. Through the case its seen that
every individual has different personality, timing and concept. So it is necessary
that they monitor each group specifically and set out to the market.

 Budget: How much they are willing to invest in promotion through respective
incharge and setting out plans to bear the expenses so that the usage and of
executing the strategy can come in need. Being read on the case even Mr. Cletus
has no intention on spending money or changing the price since price tends to be
rather simple. Therefore when it comes to technical products it does not go with
how expensive the product is but how good the product is.

 Plan of action: Strategy we are adopting to reach the objectives and make sales.

Inbound marketing is the strategic process that uses pull marketing— social
media, content marketing, events, SEO, blogs —to create brand awareness and
pull towards new customers as well as the old ones. This process often happens
even before the potential customers decide to make a purchase. The first step is to
know and connect with the brand to which they will eventually come back to take
action.

With this strategy the firm can outperform every competitors and reach out to
every customers they are preferably looking towards.

Make people interested

Its their duty the make the product interesting through advertisement , Once you
get your product/service out there, create interest around it, and make people
intrigued and interested while differentiating your brand from the competition,
with that the product will boost itself in a short period of time.

Message
When you are setting your product out in market, you are required to have a message
that will make your product stand out among other similar products. What are the
qualities of your PC’s, or the performance of the computers that everyone should
have them? It is not an easy task to find the right message for your product. It will
require a lot of brainstorming and as a result it will definitely contribute in building
perfect customers.

It is an admitted fact that all the customers are not common but differ widely as to
nature, habits, income, behaviour, age and buying decisions etc. This difference
affects the selection of commodities.

Thus, The main object of market segmentation is to locate the difference among
the customers so that the seller may determine its marketing strategies.

For different groups of customers, like, market segments, we have different sets of
marketing strategies.

The purpose of market segmentation is to determine the difference among

purchases which may affect the choice of market area or marketing methods.

On the basis of the above discussion, the objectives of market segmentation may
be summarised as under:
1. Grouping of customers on the basis of their homogeneous characteristics, such as
nature, habits, income, behaviour qualities and needs etc.
2. To located or identify the tastes, buying motives, needs, priorities and preferences
of the customers.
3. To determine marketing strategies, targets, and goals.
4. To make the activities of the firm customer oriented. Customer
orientation Makes marketing segment an important pillar of the Marketing
concept.
5. To identify the areas or sectors where the customers may be created and the sphere
of the market is expanded.

Types of Market Segmentation

The different types of segments are mainly concerned with two aspects:

 Dividing the customers into meaningful homogeneous groups.

 Revising the appropriate marketing mix to maximize the profitability of the
operations.

The different types of segments are briefly as follows:

1. Territorial or Graphic Segmentation

We can divide a country into two distinct reasons rural Markets and urban market.

Similarly, the country market can be divided State wise and each state may
represent a segment.

This type of market segmentation is very commonly used in allocating the

territories to the salesman.

2. Demographic Segmentation
Customers are classified inhomogeneous under demographic similarities like age,
sex, educational level, income.

It is thought that persons in the same age group can be approached by the same
type of appeal and publicity medium.
Income level grouping may be useful as regards the ability of the persons to
purchase the offered product.

In the same way, grouping on the sex basis plays an important part in such
segmentation.

3. Socio Physiological Segmentation

Different social classes have different spending behaviour patterns.

Social classes aggressiveness, submissiveness, degrees of cautiousness and

venturesomeness with Value differences determine this type of market
segmentation.

4. Need-Oriented Segmentation
Here the segmentation is done on the basis of needs or benefits a group seeks from
the goods.

5. Volume Segmentation
This involves segmenting of marketing judging the event of use such as heavy,
medium, light uses and those who do not use the product at all.

Volume segmentation may further be segmented on a demographic basis.

6. Qualitative Segmentation
In this type of market segmentation, Emphasis is placed on repeat purchasing by
the buyers.

This is first the extension of the volume segmentation. However, socio-

economic characteristics cannot be correlated with heavy or light consumption.
Know: Efficient-market hypothesis.

7. Product Segmentation
This is directed towards differences among the product that comprise markets.

Product segmentation is a less rational approach than market segmentation unless

there are great differences among the products involved, differentiated marketing
helps the organisation to market products to satisfy market demands and it is more
proper to satisfy its customers’ needs. 10 Main Factors Affecting Marketing
Environment (Explained).

8. Lifestyle Segmentation
This emphasises segmentation on the basis of the distinctive mode of living of
segments involving questions regarding how they spend their time, the nature of
their interests and the basic characteristics like stages in the life cycle, income,
education.

 Describe the possible market segmentation MR. Cletus Can develop to sell
his company’s Product. Describe the features of this segmentation.

1. Territorial or Graphic Segmentation

We can divide a country into two distinct reasons rural Markets and urban market.

Similarly, the country market can be divided State wise and each state may
represent a segment.

This type of market segmentation is very commonly used in allocating the

territories to the salesman.

2. Demographic Segmentation
Customers are classified inhomogeneous under demographic similarities like age,
sex, educational level, income.

It is thought that persons in the same age group can be approached by the same
type of appeal and publicity medium.

Income level grouping may be useful as regards the ability of the persons to
purchase the offered product.

In the same way, grouping on the sex basis plays an important part in such
segmentation.
3. Socio Physiological Segmentation
Different social classes have different spending behaviour patterns.

Social classes aggressiveness, submissiveness, degrees of cautiousness and

venturesomeness with Value differences determine this type of market
segmentation.

4. Need-Oriented Segmentation
Here the segmentation is done on the basis of needs or benefits a group seeks from
the goods.

5. Volume Segmentation
This involves segmenting of marketing judging the event of use such as heavy,
medium, light uses and those who do not use the product at all.

Volume segmentation may further be segmented on a demographic basis.

6. Qualitative Segmentation
In this type of market segmentation, Emphasis is placed on repeat purchasing by
the buyers.

This is first the extension of the volume segmentation. However, socio-

economic characteristics cannot be correlated with heavy or light consumption.
Know: Efficient-market hypothesis.

7. Product Segmentation
This is directed towards differences among the product that comprise markets.

Product segmentation is a less rational approach than market segmentation unless

there are great differences among the products involved, differentiated marketing
helps the organisation to market products to satisfy market demands and it is more
proper to satisfy its customers’ needs. 10 Main Factors Affecting Marketing
Environment (Explained).
8. Lifestyle Segmentation
This emphasises segmentation on the basis of the distinctive mode of living of
segments involving questions regarding how they spend their time, the nature of
their interests and the basic characteristics like stages in the life cycle, income,
education.

 Based on the market observation, Find out what kind of promotional

Strategy should be followed in each of these market segment. Justify your
answer.

Inbound marketing is the strategic process that uses pull marketing— social
media, content marketing, events, SEO, blogs —to create brand awareness and
pull towards new customers as well as the old ones. This process often happens
even before the potential customers decide to make a purchase. The first step is to
know and connect with the brand to which they will eventually come back to take
action.

With this strategy the firm can outperform every competitors and reach out to
every customers they are preferably looking towards.

Make people interested

Its their duty the make the product interesting through advertisement , Once you
get your product/service out there, create interest around it, and make people
intrigued and interested while differentiating your brand from the competition,
with that the product will boost itself in a short period of time.

Message
When you are setting your product out in market, you are required to have a message
that will make your product stand out among other similar products. What are the
qualities of your PC’s, or the performance of the computers that everyone should
have them? It is not an easy task to find the right message for your product. It will
require a lot of brainstorming and as a result it will definitely contribute in building
perfect customers.
 Conclusion

We Leave with a recommendation that, When choosing your marketing promotion

campaign, think about your product or service’s most valuable feature and start
creating a plan from there, If the Product is about technical you can always
advertise or show the performance of the product where customers and the viewers
can be felt on Purchasing mood, focusing on bringing that feature in front of your
target audience.

Your brand’s individuality will contour your campaign needs: what strategies to
adopt, what social influencers to contact for a partnership, or which type of social
media marketing you should try. So with that being said if its about computers you
cant cover everything up on a newspapers or magazines and it wont be effective
like a motion video.

Here, we conclude that MIPL can totally change their view before if its too late
and by using the new strategies and executing the plans and ideas can help them
grow rapidly as every group or individual is connected to each other so getting to
know an individual and looking towards their preferences and not their time of
using the products or attending the services provided, Hence seeing them at the
peak of market.

Market segmentation refers to dividing the heterogeneous market into smaller

customer divisions having certain homogeneous characteristics that can be satisfied
by the firm.

Market segmentation is a method for achieving a maximum market response from

Limited marketing resources by recognising differences in the response
characteristics of various parts of the market.

Segmentation gives special emphasis on the demand side of the market. It is a

more rational and more

precious adjustment of the product and marketing effort in tuned with consumer
needs and requirements.