Q-1-Ramesh was travelling in train by night, after dinner he slept and had very little sleep as for

every station various vendor would enter the train compartment and start shouting about their product

being sold. Various vendors will use different methods for explaining their products, after listening to

the noise some people will call that vendor and discuss the price and quantity and sometime bought

some times did not buy saying the price is high or quality is not right.

Next day morning when he got down of train, he asked his cousin doing MBA who had come to receive

him “why were they shouting so much at such high pitch, wasn’t it actually troubling the people?”

what was the formula of selling the vendors were using? Can you identify and explain it?

ANS-The behavior of the vendors in the train can be associated with various sales and marketing
techniques. While there isn't a specific formula per se, vendors were likely using a combination of
marketing tactics to capture the attention of potential customers and encourage them to make
purchases. Here are some of the strategies that vendors might have employed:

 Attention-Grabbing: Shouting loudly and using a high pitch is a common technique to grab the
attention of passengers. In a noisy and crowded environment like a train compartment, vendors
need to be heard above the background noise.

 Product Demonstrations: Vendors may have demonstrated or described their products in an

engaging manner to pique the interest of passengers. People are more likely to buy when they
understand the product's benefits.

 Scarcity and Urgency: Creating a sense of urgency or scarcity is a common sales tactic. Vendors
might have implied that their products were in limited supply or that the offer was only available
for a short time, encouraging passengers to make quick decisions.

 Engaging with Customers: Some passengers engaged with the vendors, discussing the price
and quality of the products. Vendors would use this opportunity to build rapport, address
objections, and negotiate prices to make a sale.
  Social Proof: Vendors may have used social proof by mentioning that other passengers have
bought their products. This can create a bandwagon effect, making passengers more likely to buy
to fit in or not miss out.

 Emotional Appeal: Vendors might have used emotional appeals, such as highlighting the
convenience, taste, or health benefits of their products. Emotional marketing can be highly
effective in influencing purchasing decisions.

 Discounts and Bargaining: Some passengers may have been hesitant due to high prices, and
vendors could engage in bargaining to accommodate different budgets.

 Building Trust: Vendors who emphasized the quality and reliability of their products were likely
aiming to build trust with passengers.

 Repetition: Repeatedly shouting about their products helps in reinforcing the message and
making it more memorable to passengers.

It's important to note that different vendors might have used different combinations of these tactics
based on the products they were selling, the preferences of their target audience, and their individual
sales skills.

Ramesh was likely questioning the vendors' approach because, although these techniques can be
effective in generating sales, they can also be annoying and intrusive to passengers who are trying to rest
or sleep. However, in a competitive market, vendors may resort to such tactics to stand out and make
sales.
Q-2-Nikhil had done MBA in hotel management and wanted to start a multi-cuisine restaurant in
the space available outside his house. His parents were ready to invest and were ready to help him, but

they said please take actual work experience in our family friends’ restaurant in another town. Nikhil,

accepted and went for the work experience. After six months father’s friend asked him have you done

market research? Nikhil said what research for a restaurant? Father’s friend said you must find out

what type of customers you will get? What price they can pay etc. Nikhil said he has not done it, but

will get it done and thanks.

What is the market research done (in marketing jargon) before starting any business? Why?

Ans-Market research is a crucial step in the process of starting any business, including a multi-cuisine
restaurant. In marketing jargon, market research involves gathering and analyzing information about the
market in which the business operates. It provides valuable insights into various aspects of the market,
and it's conducted for several reasons, including:

 Understanding the Target Audience: Market research helps in identifying and understanding the
potential customers for the restaurant. This includes demographic information (age, gender,
income level, etc.), preferences, and behaviors. It allows businesses to tailor their offerings to
meet the needs of their target audience.

 Assessing Market Demand: Research helps in gauging the demand for the type of cuisine or
dining experience that the restaurant plans to offer. Is there a demand for multi-cuisine dining in
the area, or is there a gap in the market that the restaurant can fill?

 Competition Analysis: Understanding the competitive landscape is essential. This includes

identifying existing restaurants in the area, their strengths and weaknesses, pricing strategies,
and target customer segments. It helps in positioning the new restaurant effectively.

 Pricing Strategy: Research helps in determining the pricing structure that the market can bear. It
helps set competitive prices while ensuring profitability. Different customer segments may be
willing to pay different prices, and this needs to be considered.
  Location Selection: Research aids in choosing the right location for the restaurant. Factors like
foot traffic, visibility, accessibility, and proximity to potential customers are essential
considerations.

 Regulatory and Legal Considerations: Research can also uncover any legal or regulatory
requirements that may affect the restaurant business, such as permits, licenses, health and
safety regulations, and zoning restrictions.

 Marketing and Promotion: Based on research, a marketing and promotional strategy can be
developed to attract and retain customers. This may include advertising channels, branding, and
promotions.

 Menu Development: Market research can influence the menu offerings by understanding what
types of dishes are popular among the target customers.

 Operational Insights: It can provide insights into the peak hours of business, which can help in
staff scheduling and resource allocation.

 Financial Projections: Market research data can be used to create financial projections and
business plans, which are important for securing financing and investors.

In Nikhil's case, his father's friend was emphasizing the importance of market research because it's the
foundation for making informed business decisions. Without proper research, a business, such as a
restaurant, may risk failure due to a lack of understanding of the market and its dynamics. It helps
reduce risks and increases the chances of success by aligning the business with the preferences and
needs of the target market.
Q-3-Rashmi was about to start manufacturing and marketing a cosmetics line. She discussed the
matter with her friends about the production process and finalized all the production process and

purchase of raw materials at lowest price. Rashmi also calculated the costing and the cost price of all

the products and the taxes. Rashmi had decided to sell the products through either on-line, and through

distributor -retailers. She was not sure as to what should be the pricing for and the margins for channel

members.

Can you help her doing the pricing?

Ans-Certainly, I can provide some guidance on how Rashmi can approach pricing her cosmetics line
when selling through online channels and distributor-retailers. Pricing strategy is a crucial element of any
business, and it requires careful consideration. Here are some steps Rashmi can take:

1. Understand Costs:

Calculate the total cost of production, including raw materials, labor, manufacturing overhead, and other
expenses.

Consider the cost of taxes, shipping, and any other related expenses.

2. Determine Desired Profit Margin:

Decide on the profit margin you want to achieve. This should be based on your business goals, market
competition, and industry standards. Consider both gross and net profit margins.

3. Know Your Target Market:

Understand your target customers and their willingness to pay. Research what price ranges similar
cosmetics products in the market are being sold for.

4. Pricing for Online Sales:

For online sales, consider offering a competitive price to attract customers. Keep in mind that online
customers are often price-sensitive.

Be aware of any additional costs associated with online sales, such as platform fees, payment processing
fees, and shipping costs.

5. Pricing for Distributor-Retailers:

When selling through distributor-retailers, you'll typically sell your products to distributors at a lower
price than what they will sell to retailers.

Determine the margin you want to offer to distributors. This should cover their costs and provide them
with a profit.

Similarly, decide on the margin you want to offer to retailers who will sell your products to end
customers.

6. Competitive Analysis:

Research competitors in the cosmetics industry and see what pricing strategies they use. Understand
how their pricing relates to their product quality and target market.

7. Pricing Structure:

Consider a tiered pricing structure if you have a range of products with varying production costs. Higher-
end products may have higher margins.

8. Promotions and Discounts:

Plan for occasional promotions, discounts, or bundle deals to attract and retain customers. Be mindful of
the impact of discounts on your profit margins.

9. Monitor and Adjust:

Regularly monitor sales and customer feedback. Adjust your pricing strategy as needed to stay
competitive and profitable.

10. Consult a Pricing Expert:

If Rashmi is uncertain about pricing strategy, it may be beneficial to consult a pricing expert or conduct
market research to gain insights into pricing dynamics in the cosmetics industry.

Ultimately, Rashmi's pricing strategy should balance her desire for profitability with the need to remain
competitive in the market. It's also important to consider that the right pricing strategy can evolve over
time as the business grows and market conditions change.

Q-4-Murugan had decided to start marketing the bakery products he was manufacturing is packaged
conditions through various retailers. He wanted to be innovative in his product range of muffins and

cookies. He was wondering what product qualities will attract the customers? His friend who was in

marketing said develop quality that will beat the competition by understanding the competition.

Can you explain the qualities that are similar and different to Murugan and essentials of product

development in competitive conditions?

Ans-Certainly, when it comes to developing bakery products like muffins and cookies for a competitive
market, there are certain qualities that are similar for both Murugan and his competitors, as well as
some essential aspects of product development in such conditions. Here's a breakdown of these
qualities:

Similar Qualities for Murugan and Competitors:

 Taste and Flavor: All bakery products, including muffins and cookies, must taste delicious.
Customers expect great flavor, and this is a fundamental quality for both Murugan and his
competitors.
 Quality Ingredients: Using high-quality ingredients is a shared necessity. Customers are
increasingly conscious of the ingredients in their food, and using fresh, natural, and premium
ingredients can set products apart.

 Consistency: Consistency in taste, texture, and quality is essential. Customers should have a
similar experience with the product every time they purchase it.

 Freshness: Both Murugan and his competitors should ensure that their products are fresh when
they reach customers. Stale or old products won't attract repeat business.

 Essentials of Product Development in Competitive Conditions:

 Differentiation: To stand out from competitors, Murugan needs to offer something unique or
different. This could be in terms of flavor variety, unique recipes, or innovative product forms
(e.g., gluten-free, vegan, or organic options).

 Market Research: To understand customer preferences and trends, conducting market research
is crucial. Murugan should keep an eye on customer feedback, monitor industry trends, and
analyze competitors' product offerings.

 Packaging: Attractive and functional packaging is vital. It not only protects the product but also
plays a significant role in catching the customer's eye on the store shelf. Packaging should
communicate the brand and product identity effectively.

 Cost Efficiency: In a competitive market, efficiency in production and cost management is

essential. Murugan needs to keep production costs in check without compromising product
quality.

 Health and Dietary Considerations: Health-conscious consumers are looking for healthier
options. Offering products with reduced sugar, whole grains, or alternative flours can attract a
health-focused audience.
  Branding and Marketing: Strong branding and effective marketing are essential for product
visibility. Murugan should invest in a strong brand identity and marketing campaigns to reach his
target audience.

 Quality Control and Food Safety: Maintaining rigorous quality control standards and ensuring
food safety is crucial. Customers expect safe and consistent products.

 Pricing Strategy: Pricing should be competitive while reflecting the product's quality and
uniqueness. Murugan should consider both his production costs and what the market can bear.

 Customer Feedback and Adaptation: Continuously seek and listen to customer feedback. Be
open to making improvements or changes based on customer preferences and market trends.

 Distribution Channels: Efficient and well-managed distribution is important. Ensure products are
readily available to customers through various retail channels.

 Sustainability: Given the growing concern for the environment, sustainable and eco-friendly
practices can be a selling point. Using eco-friendly packaging or sourcing ingredients responsibly
can appeal to eco-conscious consumers.

In summary, developing and marketing bakery products in a competitive market requires a combination
of traditional qualities like great taste and quality ingredients, and a range of innovative approaches like
differentiation, market research, and cost management. Success will depend on Murugan's ability to
balance these elements effectively while providing products that resonate with his target customers.
Q-5-Poornima was running a beauty parlor that was becoming popular with her customers.
Poornima was becoming very proud about it and started saying her name has become a brand and she

was ready to go to bigger cities with her brand by appointing franchisee. So, she talked to one of her

client ladies about appointing franchisees, that lady started laughing saying you must a brand to appoint

franchisees.

Can you explain when and how her parlor can become a brand?

Ans-Becoming a brand in the beauty industry or any other field is a significant achievement that usually
requires a combination of factors, effort, and time. While Poornima's beauty parlor may be popular with
customers, true branding involves more than just a good reputation. Here are some key considerations
on when and how her parlor can become a brand:

When Can Her Parlor Become a Brand:

Consistent Reputation and Quality: Poornima's parlor must maintain a consistent reputation for
providing high-quality beauty services. Customers should consistently have positive experiences, and
word-of-mouth should be strong.

Established Identity: A brand has a distinct identity, including a logo, color scheme, and visual elements
that are instantly recognizable. Poornima should invest in creating a professional and unique identity for
her parlor.

Diverse Customer Base: Expanding beyond a local customer base to serve a diverse group of clients is a
sign of brand recognition. If people from various locations seek her services, it's a good indication.

Strong Online Presence: A brand should have a strong online presence, including a professional website,
active social media profiles, and positive online reviews. Poornima should invest in digital marketing and
reputation management.
Awards and Recognition: Winning industry awards, being featured in magazines or blogs, or receiving
accolades from professional organizations can contribute to branding.

How Her Parlor Can Become a Brand:

 Unique Selling Proposition (USP): Poornima should define a clear USP that sets her parlor apart
from competitors. This could be a unique service, a specific approach to beauty care, or a niche
specialization.

 Brand Consistency: Ensure consistent quality of service and customer experience across all
locations, whether it's her original parlor or potential franchisees.

 Franchise Expansion: Before appointing franchisees, Poornima should thoroughly research and
develop a franchise model. The franchise should maintain the same brand standards, service
quality, and identity as the original parlor.

 Brand Values and Culture: Clearly define the brand's values and culture. This will help maintain a
consistent brand image across multiple locations.

 Marketing and Advertising: Invest in marketing and advertising campaigns that focus on building
the brand. These campaigns should emphasize the unique qualities of her parlor.

 Training and Support: Ensure that franchisees are well-trained and provided with the necessary
support to maintain the brand's quality and reputation.

 Legal Protection: Consider legal protection for the brand, such as trademark registration, to
prevent others from using a similar name or identity.

 Customer Feedback and Improvement: Continuously gather customer feedback and use it to
improve the services and maintain customer satisfaction.
  Community Involvement: Actively engage with the local community through events,
sponsorships, or collaborations. Positive community involvement can enhance the brand's
reputation.

 Innovation: Stay updated with industry trends and continually innovate in terms of services,
products, and customer experience.

It's essential for Poornima to remember that branding takes time, and her parlor will need to
consistently demonstrate its value and identity to the public. Building a brand is not just about
marketing; it's about creating a strong and enduring connection with customers that extends beyond a
single location. Only when her parlor has achieved this level of recognition and consistency should she
consider appointing franchisees.