Note for final project:

Why did our team choose that strategy?

CASE 8:
Context
Democrata is a clothing store in Lebanon aiming to expand amidst economic challenges
such as political instability and an influx of Syrian refugees.

● Despite these hurdles, Democrata has achieved revenue and profit growth through
competitive pricing and valuable brand focus.
● The analysis covers the global and Lebanese apparel industry, discussing consumer
spending, import trends, and the impact of fast fashion brands.
● It provides insights into Democrata's operations, business structure, and financial
position, exploring growth options like expansion into Tripoli or Koura District.
● The key question addressed is the optimal growth strategy for Democrata in
Lebanon's challenging garment industry.

This case analysis examines Democrata, a clothing store in Lebanon, which was looking to
expand its business.

Despite Lebanon's challenging economy, marked by political instability and the influx of
Syrian refugees, Democrata has seen revenue and profit growth, thanks in part to
competitive pricing and focus into valuable brands.

The case analysis examines the global and Lebanese apparel industry, highlighting factors
such as consumer spending, import trends and the impact of fast fashion brands.

Furthermore, it presents detailed information about Democrata's operations, business

structure and financial position, including potential growth options such as expansion into
Tripoli or Koura District.

Finally, the case analysis raises questions about the best growth strategy for Democrata in
the context of Lebanon's challenging garment industry.

● Positive Performance: Democrata’s revenue and net profit grew steadily from 2013
to 2015.
● Net Revenue: Increased from $871,000 in 2013 to $950,000 in 2015.
● Net Profit: Rose from $126,000 to $143,000 in the same period.
● Competitive Pricing: Products are priced 10%-20% lower than stores in Batroun
and up to 30% lower than stores in Beirut, attracting a broad customer base.
● Loyal Customer Base: Demonstrated by frequent visits and bulk purchases.
● Brand Success: Democrata has successfully built its own brand, Parkland,
particularly known for its popular men’s footwear line.

Chap 8: Marketing Strategies for New Market Entries

Đường đứt đoạn là profit(1st step nó sẽ âm r chạm đỉnh vào giai đoạn tăng trưởng)

Chapter 7: (Nhớ lấy example)

Brand positioning process
Step 3: Collect Data about Customers’ Perceptions for Brands in the Competitive Set
After identifying the competitive set of brands, the marketer should know which attributes are
determinant for the target market and the product category under consideration. And know
how different brands in the competitive set are viewed on these attributes.
Normally, qualitative research will be conducted first, it can be indepth interview or focus
group, in order to find determinant attributes. But only qualitative research is not enough, we
have to do quantitative research, it can be a survey about their perceptions on brand, to
gather data on how competing brands score on these attributes.

Step 4: Analyze the Current Positions of Brands in the Competitive Set

Slide 1:

Whether the positioning process is directed at a new brand not yet introduced or
repositioning one that already exists, it is important to develop a clear understanding of the
positioning of the existing brands in the competitive set.

There are 2 tools you can use for this process.

Slide 2, 3:

The 1st one is positioning grid(or perceptual map) and the second one is value curve
The positioning grid provides visual representation of where different brands or goods stand
within the competitive set with respect to two (usually) key characteristics.
If there is more than 2, it will be multidimensional grids

Slide 4: Now, let take an example for a better understanding of the positioning grid.
Normally, when talking about a product customers will think about 3 names or fewer than 3.
Let's take chocolate as an example, can you give me 3 chocolate brands you are thinking
about right now?

This is the reason why most brands have little or no position in the minds of many
consumers

Building a Positioning Grid

Slide 5:

Lấy ví dụ 1 cái map, chỉ vào 2 cái xa nhau nhất bảo là customer seeing these 2 brands very
different, because their locate far from each other.

Slide 6: And with brands that are located near each other, it means the intensity of
competition between these stores is likely to be considerably greater than for those that
occupy widely divergent positions.

Slide 7:

And there are empty spaces in the positioning grid, that means there possible opportunity
For launching a new brand or repositioning an existing brand.
So, how do we actually develop the positioning grid, as i say before, we learn about the tools
that can do this for us, in BRM course, now I will just remind you guys about what each tool
can do.

First, Conjoint Analysis

The value curves show that, among other things, Sears and J.C.Penney choose to com-
pete by reducing their level of customer service, ambience, category depth, and fashion-
ability, presumably in order to deliver increased value for money. Neiman Marcus offers
higher levels of customer service, ambience, category depth, and fashionability, presum-
ably because the target customer it seeks to serve is willing to pay for these attributes.

Chapter 6:
Case 5:

Q2: Describe the consumption behaviour for snacks in India. What was Snaqary's chosen target
audience? Evaluate their target market.
Snack consumption behavior in India
Indians have a long-standing habit of snacking, which is an important part of their busy lives.
Snacking is not limited to a specific time or place like main meals, and takes place in many
different situations, from snacking between meals to entertaining guests. Therefore, shoppers
seek variety in types and flavors to meet the needs of many different audiences.
However, snacking habits are changing. Consumers, especially Millennials and Gen Z, are looking
for healthier snacking options. They prioritize products that are nutritious, low in calories, low
in sodium, and high in fiber and protein. This trend has become even more evident after the
COVID-19 pandemic, when consumers are more concerned about the health and nutritional
value of food.
Mintel research shows that 85% of Indian consumers desire a healthy snack option, although
71% still value taste over health. This represents a great opportunity for brands that can
combine delicious taste and nutritional value.

Longstanding Habit: Snacking is a key part of the Indian lifestyle, enjoyed throughout the day
and in various social settings.
Shifting Preferences: Consumers, particularly younger generations, seek healthier options with
high fiber, protein, and lower calories/sodium.
Post-Pandemic Focus: Health and nutritional value are increasingly important.
Market Opportunity: Brands can win by offering tasty & nutritious snacks.

Snaqary's target audience

Snaqary targets housewives, who are the main shoppers for the family. They believe that family
is where consumption habits are formed and when family members are familiar with the brand,
they will also consider using Snaqary products when going out.

Assess target market

Targeting housewives is a reasonable strategy because they are often the ones who decide to
buy food for their families. However, Snaqary should note that:
The snack market is very competitive, with the presence of both large brands with strong
resources and small brands focusing on direct sales channels.
Consumers, especially young people (18-30 years old), are very picky in choosing snacks, they
want the products to be delicious, nutritious, and cheap.
The online sales channel (e-commerce) is very potential but also very competitive, requiring
high marketing costs.

Snaqary: Targeting the Family Gatekeeper

● Housewives: They control family purchases and influence long-term brand preference.

Market Challenges
 ● Competition: Big brands & small direct-to-consumer players
● Picky Consumers: Demand tasty, healthy & affordable snacks
● E-commerce: High potential but requires significant marketing investment.

To be successful, Snaqary needs:

Create differentiated products that meet consumers' taste and nutritional needs.
Build a strong brand, build trust with consumers.
Develop an effective marketing strategy, reaching the right target audience.
Expand distribution channels, ensuring products are available at many points of sale.
Snaqary needs to carefully consider these factors to be able to compete successfully in the
potential but challenging Indian snack market.

Case 4:

Issues:
● Campbell needs to determine the most effective way to understand consumer
thinking.
● Campbell needs to evaluate the potential costs if its rebranding of iconic Campbell
soups fails.
● Campbell needs to determine how to handle the risks inherent in the process of
researching and launching new brands.
● Campbell is considering investing in EEG or fMRI to validate current market research
efforts, including recall and biometric methods.
● Campbell is considering applying the findings across all soups at once or conducting
a limited trial of brand changes in certain varieties.
● Campbell needs to evaluate whether the new brand design could be easily conceived
by a designer with good intuition.

Q4. (Tuyết Nhi) What are the issues that should be considered when looking at
marketing research methods?
● Accuracy and reliability of self-reported data: Traditional market research
methods such as television viewership assessments, focus groups, and consumer
surveys often rely on self-reported data. However, these methods may not accurately
capture consumers' actual thoughts and behaviors because the conscious mind may
have difficulty recalling and accurately expressing experiences during past.
● Understanding the subconscious mind: Market research is increasingly focused
on exploring consumers' subconscious minds to understand their true thoughts,
feelings and motivations. Techniques such as recall, biometric methods and
consumer neuroscience are used to tap into this subconscious information and
provide greater insight into consumer behavior.
● Ethical considerations: Consumer neuroscience, a relatively new field that uses
neuroscience tools to study consumer behavior, has raised ethical concerns. Some
 people believe that it is ethically inappropriate to use these tools to manipulate
consumers into buying more products.
● Costs and benefits of different research methods: Different market research
methods have different costs and benefits. For example, fMRI provides detailed
images of brain activity but comes at a significantly higher cost than EEG.
Businesses need to carefully consider cost-benefit factors when choosing the
research method that best suits their needs.
● Apply research findings: Businesses need to determine how best to apply research
findings to their marketing strategy. This may involve changing products, marketing
messages or pricing strategies.

Các vấn đề chính trong trường hợp nghiên cứu:

● Nhãn hiệu sản phẩm: Campbell Soup đang xem xét thay đổi nhãn hiệu súp mang tính biểu
tượng của mình, một thiết kế đã tồn tại hơn một thế kỷ.1 Việc thay đổi này có nguy cơ ảnh
hưởng đến vốn chủ sở hữu thương hiệu, một yếu tố quan trọng trong hoạt động kinh doanh
của Campbell Soup.2
● Thấu hiểu người tiêu dùng: Campbell Soup không có thông tin rõ ràng về động lực mua
súp của người tiêu dùng, ngoài việc họ coi súp là "món ăn ấm áp cho ngày lạnh giá".3 Việc
thiếu hiểu biết sâu sắc này gây khó khăn trong việc đổi mới và thu hút người tiêu dùng.
● Cạnh tranh: Campbell Soup phải đối mặt với áp lực cạnh tranh từ các thương hiệu súp
khác và nhãn hiệu riêng của các nhà bán lẻ lớn như Wal-Mart.4
● Xu hướng thị trường: Thị trường súp đóng hộp tại Hoa Kỳ đã bão hòa, trong khi thị trường
quốc tế, đặc biệt là ở các nước đang phát triển, có tiềm năng tăng trưởng lớn.56
Các vấn đề cần xem xét khi xem xét các phương pháp nghiên cứu thị trường:
●
Độ chính xác của dữ liệu: Các phương pháp nghiên cứu thị trường truyền thống như đánh
giá lượng người xem truyền hình, nhóm tập trung và khảo sát đều dựa trên dữ liệu tự khai
báo, có thể không phản ánh chính xác suy nghĩ và hành vi thực tế của người tiêu dùng.678
●
Thấu hiểu tiềm thức: Các phương pháp nghiên cứu thần kinh như EEG và fMRI có thể cung
cấp cái nhìn sâu sắc hơn về phản ứng tiềm thức của người tiêu dùng đối với sản phẩm và
thông điệp tiếp thị.910 Tuy nhiên, những phương pháp này cũng đặt ra những lo ngại về
đạo đức và quyền riêng tư.1112
●
Chi phí và hiệu quả: Các phương pháp nghiên cứu thị trường khác nhau có chi phí và hiệu
quả khác nhau.13 Campbell Soup cần cân nhắc kỹ lưỡng các lựa chọn của mình để tối đa
hóa lợi tức đầu tư cho nghiên cứu thị trường.
●
Tính phù hợp: Phương pháp nghiên cứu thị trường cần phù hợp với mục tiêu nghiên cứu cụ
thể và đối tượng mục tiêu.14 Ví dụ, phương pháp phỏng vấn sâu (elicitation) có thể phù hợp
hơn để khám phá động lực tiềm ẩn của người tiêu dùng, trong khi fMRI có thể phù hợp hơn
để đánh giá hiệu quả của quảng cáo.
Kết luận:
Việc lựa chọn phương pháp nghiên cứu thị trường phù hợp là rất quan trọng để Campbell
Soup hiểu rõ người tiêu dùng và đưa ra quyết định sáng suốt về nhãn hiệu sản phẩm và các
chiến lược tiếp thị khác. Bằng cách xem xét cẩn thận các yếu tố được nêu trong trường hợp
nghiên cứu, Campbell Soup có thể nâng cao cơ hội thành công trong thị trường súp cạnh
tranh.
Case 2: Q1: Is Blaser's entry to India justified? Is Blaser justified in entering alone and
setting up a sales subsidiary?
- Blaser’s entry to India is justified:
+ India is proven to be a very potential market for the coolant industry:
● One of the key regions in the metalworking fluid segment.
● Its moving forward to becoming a global sourcing hub for many auto
companies leads to even higher demand for the metalworking fluid
segment
● Growing apprehension over the impact of industrial growth on the
planet, environment, and the health of its people => suitable with
Blaser (which is an environmentally sustainable company).
+ The challenges are:
● The opposite mindset of the Indian customers: prefer cheaper
products and coolant is also a low-priority product (Not perceived as
an enabler of productivity and performance improvements on the shop
floor) >< premium position of Blaser.
● The imminent shift toward digitalization and technologization: (electric
vehicles, hydrogen fuel cells, hybrid cars, etc) => requires more
innovation and investment in technology as well as tactical shift and
appropriate strategies for Blaser Swisslubel to fit in the fast pace of
the digitalization era.
- Setting up a sales subsidiary is a good solution for Blaser in India instead of having a
joint venture or building a production plant for some reasons:
+ Joint venture: It is against the tradition of the company. Moreover, there is no
information to convince the necessity of joint ventures when entering the
Indian market. Moreover, fully controlling the business will make it more
stable and safe in the complicated situation of the economy due to the
pandemic.
+ Building production plant: There is no necessity when building a production
plant in India:
● It will cost more. Blaser has to face the difference in standards
between Switzerland and India when building the production plant
(differences in policy, environment, culture, etc) => This is a very
costly option. Moreover, Blaser has to face a bigger problem (the
contradiction in the mindset between the seller and the buyer in the
Indian market) => Risk.
● Producing products in Switzerland is qualified enough: the highly
controlled environment in Switzerland enabled Blaser to comply with
the high standards of European manufacturing; it ensured ease in
global supply chains to move the finished goods around the world.
● High-quality local ingredients are unavailable in India.
● The reduction of import duty by the federal government of India:
Today, the component of import duties is as low as 7% to 10%, and
with the Goods and Services Tax (GST) regime enforced in July 2017,
it has become easy to manage taxes in India.