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SCHOOL OF BUSINESS MADIAGEMENT

Program: MBA Year: 11 Trimester: VI

Academic Year: 2021-2022
Subject: Marketing Analytics

Marks: 40 , giv
Date: 14March2022 a. Time: 2.00 pin to 4.00 pin
Durations: 2 (hrs}
No.of pages: 03- __
Final-EEEamination 12021-22_I_

Instructions:

1. All questions are compulsory

2. Answer to each new question to be started on a fresh page
3. State your assumptions clearly

Ouestion 1

You are a regional sales manager of a pharmaceutical company. You handle all the direct accounts
for company in your region. For the next year, you have tasked with growing the business with
Doctors whom your company manages as direct accounts. There has been sub-optimal growth (3-
5%) in this segment for your company in last few years despite a doublerdigit growth in hcalthcare
industry in general, Company has increased the strength of Medical. Representatives by 30% in
last 2 years on the recommendations of yourpredecessors, but that has also not yielded the desired
results. Hence, Company's management is apprehensive on increasing the spends to propel the
future growth. Currently, the Company MR visits all the customers at the same frequency and
there is no loyalty program for apecific customer segment. All the sales promotion program applies
to all the customers with same Terms and Conditions. Basis your recent visits to some of these
•-Doctors and your conversations with MRs, you have a hunch that Company's interests may be
best served if it can develop customized strategy for different Doctor segments, hence you have
decided to use the RFM principles to analyze the past sales data to identify various customer
segments and come up with custom strategies for each one of them basis their RFM scorea

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(a)Suggestedcustomersegmentsgivenbelowbysolvingthegivendatainexcelsheet:(youmay
customizethese,butclearlydefinethenewcustomersegmentswhichyouchoosetocreatealong
with their attributes) (10 `marks)

®Pleasementionthecustomstrategiesacrosscustomersegmentinyouranswerstooptimizethe
business growth. (10 marks)

e of se Attribute
The best customer ent with hi hest RFM values
Chain
WhalesHibernating__~- Newly ac uired hi h value customersOREchvaluecustomerswhohavenot Bought since a long time1stomers

RookiesChurnCheck Newly ac uired low va ue cuCustomerswhoareworston RFM and Company needs to have adeediveonthemtocheckforcontinuity/attritionAllothercustomerswhoshouldberetainedbcoman

Retain

Q!!±LstiQn£ `

MotoGisacarrentalcompanyinlndia.Thecompanyisconsideringexpandingitsbu`sinessto
offercarrentalsatthreeoflndia'smajorairports:Mumbai,DelhiandBangalore.Theservicewill
betargetedattouristswhowantaone-waycarrental.Thatis,theywanttopickuptherentalcar
atoneairport,driveitaroundthecountrywhileonvacationandthendropitoffattheendof their
tripatanotherairport.Mostothercompaniesexpectthepickupanddropofftobeatthesame
airport,soMotoGexpectstoattractconsiderablebusiness.However,aone-wayrentalpotentially
willcauselogisticaldifficultiesasdroppedoffcarsmaybeneededelsewherebecauseofhigh
demand.Aspatofsomepreliminaryplanning,MotoGistryingtodeterminewhatproportionof
rentalcarswillbedroppedoffateachaixport.Thiswillhelplogisticalplanning.Somemarket
researchinformationisavailable.ItisestimatedthatoftherentalcarspickedupatMumbaiairport,
40percentwillbedroppedoffatDelhiaixport,20percentatBangalorewiththeremainder
actuallybeingdroppedoffbackatMumbai.ForrentalpickupsfromDelhi,anestimated20per
centwillbedroppedoffatMumbai,30percentatBangalorewiththeremainderbeingreturned
toDelhi.ForrentalpickupsfromBangalore,30percentareexpectedtoberetumedtoMumbai,
40percenttoDelhiwiththeremainderreturnedtoBangalore.Shouldthelogisticaldifficulties
-.appeartobemajor,thecompanyisconsideringofferingitsBangalorecustomersanincentiveto
retumtheirrentalcarstoBangalore.Thisisexpectedtoreducethepercentageofcarsrentedin
BangaloreanddroppedoffinMumbaito25percentandthosedroppedoffinDelhito25percent.
Youcanassumetheinitialdropoffpercentagesas50%,30°/oand20%atMumbai,Delhiand
Bangalore airports.

#,
(a) Find out the percentage cars being dropped at th.e different airports in both the scenarios in
steady state and after 3 months. (10 marks)

a) What advice can we give the company to grow their business? (10 marks)

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