Assignment of Marketing Management covering the whole process of how the new Product is being launched in the Market.

1. Course: Marketing Management
Internal Assignment Applicable for June 2021 Examination
• Instructions:
• All Questions carry equal marks.
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question 1 and 2 and for
question 3 in not more than 500 words for each subsection. Use relevant examples,
illustrations as far as possible.
• All answers to be written individually. Discussion and group work is not advisable.
• Students are free to refer to any books/reference material/website/internet for attempting
their assignments, but are not allowed to copy the matter as it is from the source of
reference
• Students should write the assignment in their own words. Copying of assignments from
other students is not allowed.
• Students should follow the following parameter for answering the assignment questions

2. 1.As a newly appointed Product Manager by Balaji wafers, you are asked to develop New Product
Planning for a new flavor of potato wafers. How would you develop a new product planning
process?
(I have tried my best to write it in limited words but it can’t be possible to write the product planning
process in just 1000 words)
Answer:
Introduction:
Balaji wafers is an Indian private limited firm in the food industry dealing with readymade wafers
namkeens and western snacks with a market share of 71% in the western Indian market and 90% in
Gujrat and has a total revenue of around 2400 Crore. Balaji owns four plants in India with a total
processing capacity of 6.5 lakhs Kg of potatoes and 10 lakhs kg of Namkeen a day.
As here we are discussing to launch a new flavor of the potato wafers it is important for us to
understand why there is a need for a new flavor and what amount of expectations the company have
with this new product, in the line with their market share, dealing with the competitors, attracting
more customers or enriching customer experiences. For any company, the new product development
is an important implementation to keep the business growing and continue adding value to the
company and customer’s live otherwise the company’s image in people mind became obsolete and
they start looking for some other alternative which is something new. Your customer may switch to
the competitor’s product if they have more varieties of offerings than you have especially in the food
industry.
Concepts and applications:
For launching a new flavor of the potato chips, we must have to consider the eight steps which are of
the utmost importance and gives us the formal structure for carrying out strong product planning and
sets up a systematic customer-driven new product development.
Idea Generation:
For deciding the flavor of the new potato chips, the first step in the product development process is.
Here Research and development department plays a very pivotal role as they have to produce
different varieties of flavors that the Balaji wafers can offer. It is estimated that there can be around
200 types of flavor that a potato wafer company can offer but based on the region we have to look at
what the customers of that particular region crave.
Another source where we can look into is the External idea sources like asking the customers what
they want from us through various campaigns or we can run an online contest where customers can
offer and suggest various ideas about the new flavor. One other way to look for the idea is conducting
market research, Here I mean it generally happens that the distributors, retailers wholesalers know
more about the customers regarding the flavor they pick while buying any of their competitor's potato
chips or which flavor has more demand. We can also think of the flavor based on the region like in
south people generally have an habbit of eating something sourer while in northern state people have
habbit of eating more butter. Looking at people’s eating habbit is an important task for R&D while
developing the flavor. After considering all these we will get a lot number of ideas regarding the flavor
and can happen that even we have 50+ flavor ideas in this stage to offer.

3. Idea Screening:
The next step in the process is the idea screening and the most important step to look into as we have
to launch only one flavor, not all which we are getting in our first step. It may happen that we get
some really good idea about the flavors but the cost of executing them is much higher than our
estimates or some flavors only sounds good but it is unhealthy for the consumers, we have to consider
the health factor as well. A lot of other things we have to consider while doing the screening of the
flavor like the proposed customer value proposition, the target market, and competitors and have to
calculate the rough estimate of the market size, product price, development time and costs,
manufacturing costs and rate of return (profit). Based on all these, we can reduce the number of ideas.
Questioning a lot about the product is very crucial at this stage and answering based on R-W-W (Real,
win, worth doing). after considering all the facts we will prepare a written draft and present it to the
product committee.
Concept development and testing:
After all the screening the next step is the product concept development and testing at this particular
step, we will prepare a detailed version of the product concept of the shortlisted flavors and produce
all the flavors for testing with a target group of customers by offering them the samples and ask them
for their feedback regarding the Taste, preference (which will you buy if you will be offered all these
flavors), how much they will be willing to pay for any particular flavor or how will they react when it
will be launched, how much you will rate this while comparing with the competitors. After getting the
feedback we will look at the results and decide about the one certain flavor which will be launched in
the market. The Pricing and all the various packet size in which it will be available is decided and if any
improvement is needed, we can even go back and discuss all with the R&D department regarding the
flavor.
Marketing Strategy development:
Suppose we finalize the flavor Italian Ginger garlic dhania mix after the testing stage then the next
task is to develop the marketing strategy for the product.
The target market which consists of the individuals of the age group of 12-23 and mostly the college-
going students, we have to study this group and have to know about their choices, behavior liking
preference so that we can develop a better advertising campaign to attract them. Sales target which
we want to achieve in the year. Let’s say we want to sell 50000 wafers packets at an overall loss of 8%
and 80000 packets for the next-to-next year at a profit of 14%. we will also look at the marketing
budget, product price, and distribution cost for the year and also decides about the design of the
product wrappers which can attract the target group. And in the end, we will design and consider the
long-term profitability plan, marketing mix, and long-run sales.
Business Analysis:
The next step is the Business analysis of the particular product in which we will review the product in
accordance with the business we are doing. All the important factors sales, cost-profit projection, Risk
involved with the product all we take care of. All the costs which will be incurred with the product
launch from production to delivering the customer all are decided and the sales forecast is predicted
and accordingly, the profit and the decision is being taken whether as a business plant is it worth going
forward with the process, will the idea is with our company’s objective mission and vision.

4. Product Development:
After all the projections and business analysis, we will go for the product development stage where
the product is being produced by the company for testing. R&D and the production department
analyze the product manufacturing process and ensure the flavor won’t get affected because of any
mishappen and after producing a certain quantity they review the product. The finance department
looks at the cost involved while producing the packets and ensures that production cost occurs as per
the business analysis.
Test Marketing:
As the brand-new flavor of the potato wafers is ready for the launch in the market, we will go for a
test marketing where we will look and tests last time before hitting the market. We test the new
product and its entire marketing program- Targeting and positioning strategy, advertising,
distribution, Pricing, Branding, and packaging, and budget level.
Commercialization:
After the information received from the test marketing. we go for commercializing the product and
we start advertising about the product, doing various campaigns and start distributing the product
through the distributors and ensures that it is available to the customers easily. we have to consider
the introduction timing and introduction place. Timing is important as we can’t launch the product
when the economy is slowed or when there is some serious situation like covid-19. The place also
plays a crucial role we can tie up with different universities and colleges to available this particular
variety of chips which will create a big buzz among the youth.

5. Question2
Health and Nutrition Start-Up, Habit makes consumer debut with a range of innovative & delicious
Products. Habit Wise Creams are the lowest calorie ice creams in the world. Every serving has less
than 50 calories, which is less than half an apple. Available in 6 gourmet flavors such as Blueberry
Crumble, Salted Caramel, Lychee Blush, etc. Wise Creams contain zero added sugar and are keto +
diabetic friendly. Prepare an appropriate Segmentation Strategy for the new launch. Considering that
they have entered in the consumer market for the first time, how should the brand be positioned in
the market?
Answer:
Introduction:
Before preparing the appropriate marketing segmentation of the company it’s important to
understand the company profile, portfolio, and philosophy. Here is a small glimpse about the
Company-
Habbit is an Indian based health and nutrition start-up which came into existence in the year 2021
with a lot of innovative healthy and nutritional food product. The company philosophy is that when
people talk about a healthy lifestyle and taking care of the health everyone starts connecting with the
exercise, fitness, and restrictive goal plans which leads to inaccessible to a wider community of the
people and just to fill that void of the nutritional diet which people are lacking in the daily lifestyle
they came with the idea of making it simpler and to make people aware of healthy lifestyle and
nutrition and the fact company don’t want to create an image as a supplement provider which very
few people want to take or someone who is very gym conscious person is consuming. as they have
their side effects. Their products are healthy as well as at the same time they take care of the taste as
they quote this also the reason people avoid taking the shakes or supplements. They have a portfolio
of products that include proteins, Ice-creams and super shakes for the entire family lot of health issues
arising at a very young age and due to the heavy workload, everyday people aren’t able to take as
much care as they should have to. In my opinion, this is a start-up a country like India needed.
Concepts and applications:
Segmentation and Positioning strategy for the new launch:
As the brand is very new and the product which it is launching is very unique. For the first time in the
market, such a variety of ice cream is coming. Low-calorie ice cream is something new for the
consumers, The company needs to segment the market and reach potential consumers. The basis on
which we will do the segmentation is Geographical, Demographic, Psychographic, and behavior. We
can’t able to categorize only based on one subgroup, we have to use the multiple segmentation bases
so that we will be more specific about our desired group.
When we look at the geographical segmentation, we can extract these ideas which will help our
business to grow and to know about the consumers- As the start-up is still growing and it is delivering
ice-creams which require a different kind of supply chain so it can’t able to cover all the shipping codes
in the go. We know the company Is based in the Delhi NCR region so the company needs to advertise
and marketize in that particular location and attract the consumers of this area first, also, the
suburban, urban and rural categorization is important as the company will target only those who are

6. in the urban or suburban region. Also, the company has to put some of the retail stores for this we
know that our target audience is someone who is very conscious about his/her health or someone
regularly visits the Gym so it’s a good approach to put the stores of habbit providing ice-creams near
the City’s Gyms location. Moreover, As per the company profile we know that it wants to expand its
business in Mumbai and Bangalore we have to prepare a different strategy for that market we can’t
go the same.
While looking at the age factor(demographic) it’s a good approach to make the product available for
all but our main target audience is from the age group of 19-35 years. we just have to focus on the
youth who are paying more attention to their health and are more conscious of what they are
consuming.
Segmenting women and sending a different message to society is what the company’s launching
theme will be, we can jump into the market by attracting the girls by some trendy youth campaigns.
Coming with different advertisement campaigns may help us in better positioning the product. We
can create some campaigns like mothers craving for the ice cream but due to the fact she has diabetes
she won’t able to eat but at the same time, our ice cream can fill her choice. This will create a positive
impact on all the mothers who are living in that particular society. Another way of campaigning them
is by making a campaign where we can showcase how much the working professionals’ women are
putting efforts in maintaining the day to day chores as well as the office works and in all theses they
even have to take care of her health and because of this she has to be very conscious about what he
is eating, we can showcase in add that a little effort from our side for your infinite efforts or, we can
make some packaging which carries special messages for them like “don’t let your cravings affect
your health refresh with the calorie-free ice-creams”. We can also further segment based on income
but it’s not worth dividing for this particular product as we just have one type of product to offer.
There is a tradition of eating something sweet after dinner, we can target such families and customers
by giving them health advice. This is one way where lifestyle/Psychographic can be taken into
consideration. Generally, happens that people with similar lifestyle is living in the same locality based
on their income or strata, we will target them by putting the retail store nearby and promoting the
family pack. While considering the behavioral segmentation we get the idea that a special ad campaign
or festive offers will help us in positioning better among the consumers during the special occasion
like during the festive session or during the extreme summer days when everyone is looking for such
product.
Conclusion:
In the long run, our main target is to make the customers loyal to our product, when they crave for
the ice-cream they know where to go or from where to buy for this the company will start with the
loyalty bonus offer like coins or something which will be added when you buy our products, also when
our other products are being ordered we will try to give them coupons through which they can
purchase our ice-creams at a much lower cost. While positioning, we will have to look at the
competitors who are present in the market although we are new in the market still there are lot of
other brands whose main product is ice-cream and we have to study them we have to know their
segmentation strategy, how they are trying to position in the market. I have mentioned above how
segmentation can help in positioning with new ad campaigns, these can be defined based on
importance, superiority, communicable, affordability, distinctively and preemptive while looking at
the competitor's model.

7. Question 2.
Mr. Ramesh of Unique Industries is contemplating to enter the men’s top end shirts category. The
company already has a brand “CLINGERS” in the middle segment (₹350-700). The brand is very popular
amongst the target audience. Having got the volumes, Mr. Ramesh now wants to play the value game
and enter the top end (₹700+) category. He knows there are some formidable brands like Farow etc.
that will make life extremely difficult for Unique Industries. But there are certain advantages which
Unique Industries enjoys. It has one of the best retail networks in the country. They have their own
factory, which ensures regular quality supply. They are the pioneers of branded shirts in India. Mr.
Ramesh has decided to keep the brand name as “Clingers Gold”. He has decided to allocate ₹10 crores
for sales promotion and advertising budget. Unique Industries is simultaneously entering the
readymade trousers market and shoes market. Mr. Ramesh has decided to keep the same brand name
“CLINGERS” to leverage the success of the brand name to the two new categories
a. Do you think the brand name “Clingers Gold” is right for the top end segment? Justify your
answer.
b. Which factors you think need to be studied before making such entry into the market?
Answer.
Deciding a brand name for a new product is an integral part of our overall product planning as
brands are not just names and symbols it is what the consumers will connect with. Even before the
product, the brand name came into the consumer's mind. we have seen many examples of how the
brand has a deep impact on consumer buying behaviour and how much the company put the effort
into building a good brand image. A powerful brand forms the basis of building strong and profitable
customer engagement and relationships.
In the given Question the company wants to enter the new market (Rs. 700+) with the brand name
clingers gold (extension of their brand Clingers). Although it has a huge market share (middle segment)
and making a huge profit it does not guarantee that the brand will enjoy the same reputation in its
new expansion. We know that the apparel and clothing brand is something that is connected with our
stature and class, it defines who we are and it is a matter of pride for the higher/higher middle class
to afford or wear something luxurious. In my recommendation, the unique industry should have to
launch with the new brand name instead of going with the clingers gold, as they have to target a
different market where the target is the class audience or higher middle class.
The company should have to develop the strategy where they should have to launch itself as a new
player as, before this, they are dealing with the middle-class audience who are looking for cost-
effective products. They are not concerned with the quality as much as the new consumers, whom we
will target now will consider. The brand name creates a perception in the mind of the people, although
the brand is quite popular in the overall market it will be perceived by the new consumers as a brand
that is not so unique. while studying the segmentation and targeting we know that each target market
has its traits and characters and the higher-class consumers want something unique or something
which can’t be afforded by the mass audience. Because of the mass brand name recognition, it may
happen that the new consumers don’t want something available in 2 different cost range, (the only
difference is the gold) which may fail to attract them and they prefer going for the brand which they
are already knowing or using which gives them the sense of uniqueness and premium and which they

8. know and trust its quality. It is a difficult task for any company to suddenly change the buying
behaviour of a particular individual. With clinger gold, it may fail in winning the premium market, It
will be a wise decision for the unique industry to came up with a new brand name.
One more concern which we have to look after is that there are new competitors for us and their
marketing strategies, their business model is designed for the premium class audience. The most
important factor is that they are trusted and preferred among the premium market, although we are
very popular among the target market (R350-700) it won't make any difference while competing with
the competitors of different market, so going with the same name didn’t add any sense when we are
upgrading our market position. The company already has allotted a budget of Rs 10 crore for its
promotion and marketing campaigns which are sufficient for a new brand to enter a class market by
coming with a new brand name and logo, we also have an opportunity to position our brand as
something new which everyone in the changing world is looking for and this where we have to hit. our
advertisements and promotions should be designed by studying the target market precisely and for
this, the company should have to appoint a different team who have prior experience of this market.
Answer b.
As the company wants to enter the new market it Is essential to know the market and understand
it well, for this company has to study major factors which include both the micro as well as macro.
although we will enjoy the benefits because we are already in the business for a long time, the
departments like supply chain and production can easily be managed but as we are now in the new
market, we will have to study the below-mentioned factors:
Company: Any marketing activity or any future plan is not just one individual task in the company all
the departments have their role in it. The top management sets the company's mission. Vision and
sets the broad strategies and policies, Other departments like Finance, research, operations, human
resource, and marketing all have their specialized role and are interconnected.
Marketing intermediaries: The one helps to grow the market within the nation or state, they work
differently and are bounded by rules and policies. These include Resellers, Physical distribution
channel firms, marketing service agency and financial intermediaries. resellers will help the company
in spreading in the market with various distribution channels while marketing intermediaries are
marketing research firms, advertising agencies, and media which plays a crucial role while
campaigning or advertising our product (Shirts). Financial intermediaries include banks, credit
companies, insurance companies and other business that helps the company financially.
Competitors: without knowing about the competitors and their strategy we are nowhere going to win
in the market we have to know about all the brands which are in the market and how they are
positioning themselves. We have to take the competitive advantage by delivering better than our
competitors it’s a slow process or an ongoing process to position our products in the mind of
customers who are already tied up with the other brand.
Customers: Knowing about the customers is of utmost importance the final aim of the company is to
engage customers and build a profitable relationship with them. Knowing about them, what sort of
behavior they possess, their values, their class everything is important for the company to deliver
effectively. These help the business in reaching the potential buyer and also in advertising and
promotional campaigns.

9. The macroenvironment factors which are important to study:
Demography: The company must be aware of the demographic environment of the state or nation or
of the market where it wants to enter. It includes studying the human populations in terms of size,
density, age, occupation. Some of the crucial factors which the company should have to consider are
Increasing urban population, growing middle class, changing family system, the changing role of
women, increasing diversity, and more educated and aware professional consumers
Economic: All the factors that affect the consumer purchasing power and spending pattern, changing
in the major economic variables such as income, cost of living, interest rates, and savings and
borrowing pattern have a large impact on the marketplace. The business has to pay attention to
income distribution and income levels.
The political and social factors: The business decision is also affected by the development in the
political environment consisting of laws, government agencies, and other legislative bodies. There are
some legislation and rules which the company has to take into consideration while making any
business decision. The social factors talk about the overall society, what sort of society is this what are
their basic values, perceptions, preferences and behaviors, and belief system they pose. Their views
about themselves, about others, about the organization, society, and nature are also taken into
consideration before making business decisions.
The natural and technological environment: The natural environment includes the physical
environment in which we are living and the natural resources which the business is using as input. Any
unexpected happening in nature can affect our business, the world moving towards a more
sustainable approach, change in the season all are important. Technology which is changing the most
in recent time, growing business online, using IOT AI and machine learning all these comes under this.
The company should have to be updated with the latest trend in technology.