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    Final Exam Marketing Management Jan 2019

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    Final Exam Marketing Management Jan 2019

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    Final Exam Marketing Management Jan 2019

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    Fazida Salim

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    CONFIDE: ‘ig UNITAR Q INTERNATIONAL UNIVERSITY YeSDOMO# ME RAS PRES OURREURE FINAL EXAMINATION JANUARY 2019 COURSE TITLE COURSE CODE DATEIDAY TIME/DURATION INSTRUCTIONS TO CANDIDATES : MARKETING MANAGEMENT GSRM7223 07 APRIL 2019/SUNDAY 12:30 PM - 03:30 PM/3 HOURS. Please read the instruction under each section carefully, ‘Candidate are reminded not to bring into examination hallroom any form or written materials or electronic gadget except for stationery that is permitted by the Invigilator. ‘Students who are caught breaching the Examination Rules and Regulations will bo charged with an academic dishonesty ‘and if found quity of the offence, the maximum penalty is expulsion from the University. (This Question Paper consists of 7 Printed Pages including front page) ‘20 NOT OPEN THE QUESTION PAPER UNTIL YOU ARE TOLD To DO SO™ Marketing Management (GSRM 7223) ‘CONFIDENTIAL ‘January 2019 Final Examination This question paper only contains ONE (1) section. (TOTAL: 60 MARKS) There are SIX (6) questions in this question paper. Please refer to Article 1, Article 2 and Illustration 1 on page 4 to page 7 to answer the questions. Answer ALL questions in the answer booklet. 1. The vast array of products that consumers buy can be classified based on shopping habits ‘and are broken down into four main areas, such as convenience goods, shopping goods, ity goods, and unsought goods. 1a. Identify which ‘consumer goods classification’ does Vitaminwater belongs to, Explain its characteristics, (2 marks) b. Explain appropriate marketing mix strategies (4 P's) for the type of consumer goods that, You identified in 1 (a) above. (8 marks) (Total: 10 Marks) 2, Identify and elaborate the target markets for Vitaminwater, in terms of demograp! behavioral and psychographic factors. (10 Marks) 3. Elaborate TWO (2) current trends in the marketing environments that have possibly encourage the Coca-Cola's investment decisions to purchase Vitaminwater as high as $4.1 billion. (10 Marks) 4, Moving forward, discuss the effects on the consumer's purchase intention towards the product, due to the issues surrounding Vitaminwater as evidenced in Article 1 and Article 2. (10 Marks) 5. Some marketers believe that since people are becoming more alike in so many countries, using one marketing strategy, with some small adjustments in language, is cost effective and is a better idea. Other marketers will argue as there are national borders so the marketing strategies must stay local. With regard to promoting Vitaminwater, which strategy do you think the company should adopt? (40 Marks) Marketing Management (SRI 7223) CONFIDENTIAL slerusry 2019 Final Examinason 6. “Celebrity endorsement” is describe as when a famous person uses their notoriety to help sell a product or service. The benefits of using a celebrity for advertising are the ability to: Build brand equity, which means brand power is acquired through the name recognition, which allows the company to achieve larger sales and profits.’ Firms invest significant monies in juxtaposing brands and organisations with endorser qualities such as attractiveness, likeability, and trustworthiness. They trust that these qualities operate in a transferable way, and, will generate desirable campaign outcomes? Do you agree with the statement that using celebrity will allow the company to achieve larger sales? Discuss the effect to the Vitaminwater brand by using celebrity like Kobe Bryant and Ellen DeGeneres as seen in the advertisements in Illustration 1. (10 Marks) Source: ‘https://www.google.com/search?q=use+ofcelebrity+intadvertising&riz=1C1GCEU_enMY822MY8 2280q=usetofcelebrity+Baqs=chrome. 0.0j69i5 7j014.6759}0}8&sourceid=chrome&ie=UTF-8 2.B. Zafer Erdogan, Celebrity Endorsement: A Literature Review, Journal of Marketing Management, Vol 15, 1999, Issue 4 *** END OF QUESTION PAPER *** Markoting Management (GSRM 7228) CONFIDENTIAL Jenuary 2019 Fal Examination Articte 1 Coca Cola’s Acquisition of Vitaminwater BY SEAN ROSS Updated Oct 19, 2018 The soft drink conglomerate Coca-Cola Co. (KO) is a revenue machine. As of 2018, the ‘company has over 200 brands marketed in over 200 countries with many generating $1 billion ‘or more in annual revenues, including big names such as Dasani, Odwalla, Minute Maid, Powerade, Sprite and Gold Peak Tea. However, few of these acquired brands have grabbed market headlines like Glaceau's vitaminwater, which was purchased by Coca-Cola in 2007 for a then-company high of $4.1 billion. The years subsequent to the Vitaminwater purchase saw Coca-Cola's marketing team do wonders: Vitaminwater went from annual sales of $250 million to more than $1 billion. The sweetened water beverage entered new markets and, by nearly any measure, performed very weil. Many touted it as Coca-Cola's most ambitious and successful purchase to date. ‘That argument became muddier after Coca-Cola was forced into a $1.2 million settlement over a Vitaminwater lawsuit in 2013-2014. The lawsuit, fled by residents of Florida, Ohio, Missouri and the Virgin Islands, contested the possibly misleading health benefits tied to the Vitaminwater product. There is also the question of valuation. Coca-Cola spent in excess of $4 billion for a company with only $380 million in revenues. Some contend the company overpaid, Which is something it rarely does when making acquisitions and strategic partnerships. The Vitaminwater Deal In 2006, Glacéau Vitaminwater was owned by Energy Brands Inc. and was evaluated at roughly $2.2 billion. Coca-Cola swooped in one year later and eventually purchased the brand for almost double that amount. The $4.1 million acquisition sent shock waves through the soft drink world. By 2011, Vitaminwater had grown from $350 milion in annual revenue to more than $1 billion. A similar story happened with Del Valle, which was purchased by Coca-Cola in 2007 and reached $1 billion in annual sales by 2010. Changes in marketing, ingredients and the health lawsult all damaged Vitaminwater over the next several years. Between 2012 and 2013, the dollar sales of Vitaminwater dropped by more than a quarter. Depending on which income numbers you decide to use, Coca-Cola brought in as much as $47 billion in revenue in 2014. Vitaminwater accounted for approximately $950 milion of that amount; it is substantial but nowhere near as big as the major Coke brands: Coca-Cola, Diet Coke, Sprite and Coke Zero. The Lawsuit The original lawsuit over Coca-Cola and Vitaminwater occurred in 2009 and was filed by The Center for Science in the Public Interest (CSPI). CSPI specifically contested some of the scientific and biological claims that the drink could "promote healthy joints, support optimal Immune function and reduce the risk of eye disease." Coke responded by changing the sugar content of Vitaminwater. The original drink used a combination of cane sugar and crystalline fructose, but the altered version used a blend of cane Merketing Management (GSRM 7223) CONFIDENTIAL

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