business_communication - answer

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Business Communication CASE-1 (20 Marks) Nestle has launched quality street ,lion and after 8 choclates imported from Europe. Qualtty Street is an assortment of chocolates priced at Rs. 7 5 for 218 gm. After Eight is a popular adult chocolate priced at Rs.25 for 20 gm and Lion is a caramel wafer bar priced at Rs. 20 for a 45 gm bar. (Kit Kat )is priced at Rs. 6 for a 17 gm bar and has a chocolaty taste while Lion has a crunchy taste). The brands have different tastes and will appeal to different target segments (though the target segment is one which may have already been exposed to these brands during visits abroad). These brands have been introduced in metros in upmarket stores which sell brands bears the label "lmported by Nestle India Ltd." indicating that they may be better than smuggled ones (which may be stale). Question : 1 Suggest suitable media /media vehicles for promoting these brands. Give reasons in support of your answer 2 What business communication media you will utilize if you have to launch a soap in rural India?

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Answer: INTRODUCTION

One of the world’s largest food processing companies, NESTLE found itself mired in

promotion of its chocolates. There are many types of brand and in that chocolates are produced by

the company. But out of that QUALITY STREET, LION and AFTER 8 chocolates faces promotion

problems. These brands have different taste and taste is an Indian taste but promotion

problem hinders its sales.

SITUATION Situation to this case is such that the 3 imported chocolates namely quality street, lion and

after 8 has its price and quantity as follows:

QUALITY STREET – (218 gm) = RS75

LION- (45 gm) =RS 20

AFTER 8- (20gm)=RS25

TARGET CUSTOMERS Already been exposed to these brands during visits abroad

ECONOMIC ANALYSIS

(Potential consumers of chocolate in the country)

Income Groups Age Groups

(Rs'000 p.a.) 5 to 14 15 to 19 20 - 24 25 to 34 Total Rural 62 - 86 2.2 0.8 0.7 1.2 4.9(Millions) >86 13.5 4.8 4.3 7 29.6 Total 15.7 5.6 5 8.2 34.5 62 - 86 7 2.5 2.2 3.7 15.4 >86 18.8 4.9 4.4 7.2 30.2 Total 20.08 7.4 6.6 10.8 45.7Total 36.5 13 11.7 19 80.2

• As per the study of above table we can make out the targeted consumer of different age

groups as per their incomes. We can come to the result of our focus customers.

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SOLUTION & UNDERSTANDING THE SOLUTION The above situation can have two solutions for the same

• Firstly taking the Quality Street chocolate is the tasty chocolate but has a high quality in it

and so the prices seem to be high. Seeing to the Indian customers, mentally customers see

the price first and then the quality usually so from 218 grams it should be reduced to 102

grams chocolate. Doing this price set can be reduced from Rs 75 to Rs 35. This being not loss

to the company but it can be profitable as there will be more buyers for the same product. Its

not only about the price also but once again it has also to be affordable for all class of people.

It has to be affordable to all of them.

• Then comes the Lion chocolate which is liked by mostly by the children. So it should have

some very attractive packing. Some cartoon, Barbie shaped which is liked by children or some

promotional activities to be done in terms of some good model or cartoonist promoting the

product. Some gifts such as stickers, brands & stationary can also be given if it suffices the

pricing of the same & once again affordable.

• Then comes After 8 chocolates which can be done in simple packing, but needs to change

somewhat its taste as it does not have perfect an Indian taste. It should be less bitter taste &

somehow more sweet in comparison with the taste of Christian one. As it has less sugar it has

to improve the ingredients.

• Nestle Kit Kat - are crisp wafer fingers covered with choco layer. NESTLÉ KIT KAT has a

unique finger format witha ‘breaking' ritual attached to it. KIT KAT is one of the most

successful brands in the world and every year over 12 billion NESTLÉ KIT KAT fingers

are consumed around the globe

Liking of Chocolates

Liking for the chocolates Yes NoNumber of Respondents 95 5

Number of Respondents

0

20

40

60

80

100

Yes No


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Frequency of Consumption


Once in a fortnight 16 Daily 17

Weekly 39 Monthly 18 Quartely 5


01020304050

Onc

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afo

rtnig

ht

Wee

kly

Qua

rtely


• The second solution is various types of offer that can be given to customers. i.e. most popular

product of Nestle is Maggie & it is consumed by all the age groups of customers and so a free

chocolate is also consumed by these age group of customers & so a free chocolate can also

be offered. Once tasted by any age group would surely buy if tasted & it can also be

consumed. Therefore there would be increase in sales of Maggie as well as chocolates.

• Early Customer Testing

• Packing & design

• Brand name

• Launching Strategies & time of launching

• Rural Market Initiatives

Once again any chocolates which are imported & branded as per the guidelines & regulatory of the

particular country & to be marketed under Indian branch if the same has been promoted within India.

(India in an example in the case)

• Nestle is the authorized importer of that particular chocolate/product which is to be marketed

& sold through Nestle India label only. It can be called as authorized importer. No other brand

can import the same product & market the same.

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• Product are made as per the their consumption, In which country it is consumed & the

importer of the same. There are some minor changes in terms of product taste, size and

packing of the same.

• Promotion and marketing solely depends upon the consumption area of that particular

product.

• If we take an example of Kit Kat, one of the most successful product of Nestle, Nestle is the

authorized importer and it has to be marketed under Nestle India brand only. No other

competitor brands can import the same & make their labels accordingly. Taste, packing & size

may differ country to country.

Suitable Media

• The best suitable media would be television because firstly it is a suitable product which needs

a remainder each day, a recall at all the intervals and at regular basis. The advertisement

agency should see to it that an attractive advertising will surely increase the sales. Once again

frames of advertisement as well as the cost has also to be taken care of. An advertisement of

30 seconds would suffice to promote a product.

• It is required that company has wide distribution network in metros and all the markets

including interior. Perfect supply network and mode of transportation has to be taken care. Communication with wholesalers, semi wholesalers & big retails should always be in contact. with it target customers and all of them are covered by all upcoming stores and at all the

premium areas as per the footfalls. Airports and stations should be supplied strongly as there

would be maximum footfalls.

• Hoardings at all the metro locations initially which covers 40% - 50% of the market where the

product is sold & then at interior locations.

• Product visibility at all the web portals and other social networking sites where there is

maximum hit

• Promotional offers with other products can also be offered. Quantity in terms of grams would

be minimum. Once tasted would be a final choice of the individual.

Media of Advertisement


Television 82 News Papers 7

Broushers 3 Hoarding 4

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Number of RespondentsNumber of Respondents, Television, 82

Number of Respondents, New s

Papers, 7

Number of Respondents, Broushers, 3

Number of Respondents, Hoarding, 4

0102030405060708090

Television New s Papers Broushers Hoarding


Benefits

• Increase in sales & profitability of the company

• More reach

• Brand promotion at all levels & in all areas including interiors and reach to all class of people

• Product acceptance

• New product launches & expandable distribution network

Conclusion Thus due to above solution there can be increase in sales which also increases ultimately in

profit. There can be hurdles even in implementing all the strategies and key changes but once again

its all about stream lining the same. Proper planning also helps in achieving all the targets in terms of

sales & promoting a product & achieving the desired goal of the company.

Company is a legal artificial person and so also restricted by laws and rules & it should be

taken care & proper steps is carefully taken to reach to next level.

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2) Soap in Rural India

Personal Selling most effective way and best communication that can be used at the

rural area because people in the rural area especially in India are illiterate and soap is that thing which

is not on most priority for rural people.

• Pricing to be taken on almost priority as it has to be more competitive

• Offers of Buy 1 & Get 1 free or packs of 3 together to be sold at competitive rates. This helps

as their would be more sales.

• Strong Distribution channel and scheme for small retailers.

• Packing to be more attractive

• Offer can be made by increasing size of the bar also. (Eg. in grams)

• Schemes along with its co product. Eg 1 small bar of 50 grams free with a bottle of shampoo.

In this case, customer utilizes the soap and it can be promoted by itself. Therefore sales of

both the product increases i.e. soap as well as shampoos.

• Transportation cost is also lower in comparison with bigger cities.

• Hoardings and small banners to be loaded and especially in regional languages.

• Launch has to be done with big bang.

• Expectations of the rural people is less as compared to others

Conclusion: Rural is the area where each company has to focus. If promoted well with all the required

strategies if can surely be made a big success.

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CASE -2 (20 Marks) The herbal shampoo market is valued at around Rs. 100 crores. Ny/e, Ayur, Dqbur and Biotique are some of the established brands in the market. Helene Curtis (JK Group) has introduced a premium herbal shampoo (with variants Shikskai, henna and qmla and brqhmi and josur) priced between Rs. 80 and Rs. 90 (500 ml) for different types of hair. The proposition is the benefits offered by lhe variant based on the combination of herbs, benefits offered by the variants range from extra protection and nourishment to colour, body and bounce. The shampoos have been launched under the brand name Premium Herbsl Shsmpoos and they target urban housewives with a monthly household income of Rs.25,000. The brand is distributed through 7 0,000 retail outlets and 120 Raymond shops. The company has planned only point of purchase (POP) posters initially and may consider the electronic media later. The shampoo has an annual advertising expenditure of Rs. 10 crores. Question : 1 Comment on the marketing mix of JK's Premium Herbsl Shampoos ? 2 How can you make their communication more effective ?.

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Answer: Introduction: India is the country as such which has native nations and benefits. This country has wide

acceptability for ayurvedic herbs then compared to antibiotics and homeopathic herbs. This country

believes in and has the conviction of using natural and ayurvedic products.

Similarly in the case of herbal shampoo which are available in markets are Nyle, Ayur, Dabar

Biotique etc are available in the markets and are established brands at this point of time and

consumed in big volumes. Any new player upcoming in the market has to come up with something

different.

Segmentation Shampoo remains the key hair care segment, accounting for 41 per cent of sales. Although

overall sales have remained flat year on year, medicated shampoos are offsetting a decline in the

two-in-one shampoo sector. Sales of medicated shampoos are driven by traditional brands, such as

Head & Shoulders.

Hair conditioners are performing well (sales up four per cent since 2001) and making some gains

as consumers shift away from two-in-one shampoos. The customer's desire for greater convenience

appears to be declining in importance, with the "two-in-one" market now accounting for only 19 per

cent of the overall shampoo market, with sales down seven per cent since 2001

Which of the following brands of shampoo have you purchase.

Dabur Ayur

Organics Vatika

others (please specify)

Dabur Ayur Organics Vatika Others Male 7 5 4 8 3 Female 5 3 2 8 3

Response

It can been seen that clinic all clear has been tried by most people that account for 16 of 20 sample

and next coming to be Pantene with 12. After this brand sunsilk is used more followed by organics.

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Analysis

The survey showed a number of reasons for consumers using more than one brand or type

of shampoos simultaneously. No single shampoo, according to the consumer, was able to

fulfill all the hair requirements. Dandruff was the most important hair problem which led the

consumer to use more than one shampoo at a time. Some people use two or more

shampoos simultaneously, just for change.

Key Findings

• It has been observed that people use not only shampoos but home remedy is also preferred

because of its uniqueness of effectiveness. People also use more than one shampoo or keep

two shampoos

• q Most people have tried one or more shampoos but hardly finds any differences. Except for

clinic all clear and organic in which respondents have positively agreed of best shampoo than

others.

• q People buys those shampoos giving them maximum benefits. Female normally look for

shampoo matching with their hair type but male look for combination of benefits i.e. 1st hair

problem and then fragrances followed by price.

• An advertisement is the one that influences a lot than any other factors.

• Most people change their shampoos occasionally but there are people who never change their

shampoo i.e. they are satisfied with their current brand.

• People normally shampoo twice a week or three to four times a week.

• Most people normally buy sachets available followed by above 250-ml pack.

• Most people know of the brands through advertisements. Next come magazines. And then the

newspapers.

• Satisfaction is maximum drawn with people using clinic and organic. These are the brands,

which attract most because of perceived quality and brand image.

Situation: Helene Curtis (J.K. Group) who has introduced a premium herbal shampoo priced between

80 to 90 which consist of 500 ml and for different types of hair and for urban housewives and which is

¼ th of total costumers. Therefore the expectation of the product would also be high as targets users

are somewhat higher.

• Prices are big higher as compared to other products available in the market. All the ingredients

used has to be as per the products available in the market and something better than that in

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terms of quality and packing.

• Distribution has to be at its best as there are 7000 outlets and 120 Raymond shops. All the

outlets are to be decorated with the POP and some small banner. Therefore distribution plays

a key role in this case.

• The promotion needs to be boost up as the advertisement expenditure which is of 10 crores

has to be absolutely used effectively. As per the budgets available all the print and media

promotion can happen as per the plans.

Solution

• Product The product used has to be with one of the best ingredients and to be used such as

shikakai heena, amla brahmi etc which gives fast results compared to other shampoos. So the

product to be suggested is to add all such ingredients which gives better results such as anti

dandruff, long hair, lasting and smell has also to be taken care and should be made

accordingly.

• Place The place of the product should be such that there is less transportation cost and raw

material etc.

Place which is selected is best and retail outlets which is of good number of raymond

shops. Its suggest good distribution network. Distribution is done widely and so the product is

easily available to all the customers.

• Price

The price of the product is considered keeping in mind the urban area (whose wives

income is more than 25000) along with that rural area should be kept in mind and than

the price should be determined.

Promotion & Marketing

The companies promotion need to be handled more efficiently because here comes the main role

and core activity which make the product popular and here there is less promotion activies done.

Solutions available are as follows

• There can be any offer at the time of the launch of the product. Eg some conditioner free with

each shampoo. The launch has to be done in big way with all possible things

• Personal selling improves the awareness of the product.

• Packing should be done such that it is more attractive and less wastage.

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Brand

Media

Vatika

Male female

Ayur

Male female

Biotique

Male female

Dabur

Male female TV 10 10 10 10 10 10 10 10 Magazine 6

8 8 9 5

4 4 7

Newspaper 4 6

9 7 6 4 7 5

Response

Reveals that in TV as media for advertisement all the responded have had the same

frequency of seeing the ads of all the brands. In case of print media as in Magazine highest

number of viewer ship went to Dabur, Vatika, Ayur, Biotique, in decreasing order. In case of

Newspaper the maximum no. of viewership went to these brands.

Analysis

It says that T.V. is best media for advertising for all kind of advertising and it has best

opportunity for the brand to penetrate in market. All of the brands have equal no. of viewership

in TV but in magazine &Newspaper they had different viewership.

Recommendations

• Target those people who use shampoo and trust the shampoo as their best solution for hair

care.

• Develop quality and brand image so that by trial of your brand leaves with a good image and

then followed by usage of bigger pack which then will be used by them.

• Identify the key benefits such as hair strengthening, Missing form shampoo and makes them

the USP of new brands. The USP could be rebuilding damaged hair, shiny and healthy hair.

• Look for different problems for which people use shampoo for hair care, falling hair and

dandruff’s etc. And deliver the same of high quality and at the same time positioning the brand

as solution for your hair problem and which also rejuvenate your hair, and keep your hair

healthy to that target group.

• The ideas, associations and images that people have of a shampoo brand determine the

demand side of the brand equity equation. There are two ways in which advertising is likely to

influence perceived product performance. First, by guiding the expectations about the

shampoo experience - process called product enhancement and second, by creating a halo of

superiority around the brand via a mechanic termed “ Interest – Status”. There are two key

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advertising related factors First, the advertisement needs to be remembered. This is important

because its main influence is at the point of trial. Second, the message should relate in some

way to the experience of ‘using’ the product - for instance, does it create any expectation of

what the shampoo would “ feel like to your hair” i.e., how will it take care of your hair and

especially to your specifications. But the advertiser should always bear in mind that the

benefits proclaimed are in line with what the product can actually deliver.

• Use country wide sampling activity to acquaint potential customers with the benefit of

shampoo backing up the effort with advertising to convert intent to purchase.

• Offer value for money impetus for the decision to use the product more intensively

• Again benchmark the company that has well positioned itself in the minds of the consumer and

they [consumers] rarely change their shampoo. Here these people are almost satisfied with

their current brand because the core features the consumer looks for is being derived from

their brand. And so delivering the improved one will make them switch to your brand but it

should be well advertised and substantiated

This action of company will have other positive effect of attracting those switchers, changing

frequently and/or occasionally and drawing the crowd towards your brand.

• Go for strategic sizing and pricing. Have those packs available in the market so that people

have a wider option available and presence of your brand. After a gap of some time check

which are the packs that are bought most and assure their availability.

• Last but not the least there are separate issue that have to dealt with being the male and

female factor and then growing demand of herbal shampoo. Looking at first point the female

factors of buying a shampoo are different than male. A female normally have less problem of

falling hair than male and so they look for those hair shampoo that improve from the current

position of their hair. [Rejuvenate and healthy etc.] But one common problem [male & female]

that they may have is of dandruff’s. And so the company can develop the brand image and

quality and communicate better to the target group of these core benefits of your brand i.e.,

solution for hair problem and thus improving and rejuvenating them. Second point. Can the

company in the same line of chemical shampoos change the perception in the mind of the

consumer of chemical shampoo having no side affects and at the same time advertise about

the possible advantages of using their shampoo and/or can they come up with a herbal

shampoo as the product extension and there by building a well brand image. Like the Colgate

has done with the already launched product of herbal toothpaste. If yes please go ahead but

probe before you plunge.

• The advt. Slogan could be :

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Expert care for every type of hair

Extra protection for your hair

Remove dandruff’s in sec’s

Healthy shiny u ever wanted.

Conclusion Thus seeing this marketing mix of the company, the company is good at his product and place

but it needs more improvement in price and promotion.

Company is with such a product without advertisement no once would accept the product or

we can say ready to empty their pockets for such a product. Company has to have such a promotion

that a repeated buying process is done and for that customer has to be satisfied with its product to the

customer.

Company in case the transportation cost is not dealt with but personally it can be advised that

company should have its manufacturing department nearer to the raw material and target place where

product is to be sold.

Thus lastly we can say that a Helene Curtis is gives importance to certain matters more

carefully will be world wide accepted company.

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CASE 3 (40 Marks) Attempt all cases of the following: (10 marks each) (i) Iran Rafsanjan Co., Rafsanjan City, Iran has taken a marine insurance policy No. VB/84/3629/29 dated 20th December, 2005 from Albroz Insurance Co., Kerman City, Iran for the import of 500 tractor gears from Apex Products (India) Ltd., Delhi. The exporter shipped the cargo on board vessel — SEEMA on 26th December, 2005 for Bandar Abbas Port of Iran. As per the letter of credit condition, the exporter was required to fax the shipment details to Albroz Insurance Company within 24 hours of the shipment. However, the exporter could not fax such details due to change in telephone (fax) number of the insurance company. Draft an express telegram to intimate shipment details. ii) Yours is a multinational company having joint venture with a Chinese company. Plant is to be located at Surat. The company immediately needs an Executive - Foreign Affairs (male/female) with ability of “writing and speaking Chinese language. Draft a recruitment advertisement for publication under classified column of a national daily. Salary-is no bar for the right candidate. E-mail address [email protected] iii) The local head office of State Bank of India is located at 11, Parliament Street, New Delhi-110001. The bank wants to construct 76 flats at Noida for its employees and invite applications for pre-qualification of contractors. Full details are available on its website - www.sbi.co.in or www.statebankofindia.com/ procurement_news. Draft a notice for pre-qualification of contractors. iv) The Joint Admission Board (JAB) of Indian Institutes of Technology in its meeting held on 17th September, 2005 at Kolkata has taken some decisions with regard to Joint Entrance Examination (JEE) 2006, i.e., to appear in JEE, one must secure at least 60% marks (55% for SC/ST and PD) in 10+2 examination; a candidate can have only two attempts with effect from JEE-2006; and a candidate who joins any of the IITs through JEE-2006 will not be permitted to appear in JEE in future.* It was also decided that candidates, who have passed their qualifying examination in 2005 or earlier, will be allowed to appear in JEE-2006 as the last chance, witji no consideration of marks or attempts at JEE subject to age requirements. On behalf of the JAB, draft a suitable press release to be issued by organising chairman highlighting these decisions.

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Answer (iii)

State Bank of India 11, Parliament Street, New Delhi – 110 001

17th December, 2011

Notice of Contract

Notice is hereby to inform contractors who are interested in constructing 76 flats at Plot No.46,

Knowledge Park-III, Noida - 201308, India in reference to circular no. CIR/5674/CRD/786543. The

construction place as per the address specified is purchased and all the documents are complete.

The contractor has to furnish labor or material, or both labor and material or is to furnish or has

furnished labor, materials, rental equipment, appliances or both in the erection, alteration on that

land. Below are the necessary requirements.

• It has to be completed with ONE year or below the time specified with the notice.

• The building has to be such that has the attractive layout with maximum utilization of the area.

• It should be 2BHK flat with all the necessary furniture and fixtures

• The fees and all the charges are to be clarified with the receipt of your proposals

All the required details are including circular is uploaded on our website:

www.sbi.co.in/www.sbi.com/procurement/news

Your Proposal should reach physically on the above address or by Email: [email protected] from

15 days of this advertisement

For further details contact

John Abraham

Vice President – State Bank of India (Admin)

Delhi

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Answer (i)

To,

Albroz Insurance Co,

Kerman city, Iran

CC – M/s Iran Rafsanjan Co. Rafsanjan City

Sub : Consignment sailing confirmation vide insurance policy No. VB/84/3629/29 dated 20th December, 2005

Dear Sir,

This is to confirm all concerns that we the shippers M/s Apex Products (India) Ltd., Delhi have

exported 500 nos. tractor gears ( as per attached invoice/ packing list / PO nos : NH475/67543566) to

Consignee M/s Iran Rafsanjan Co., Rafsanjan City, Iran per vessel MV Seema sailed on 26th

December, vide Bill of Lading no:2457890 ( as attached)

Thanking you

For, M/s Apex Products (India) Pvt Ltd.

_____________

++++++++++++++++++++

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Answer (ii)

URGENT REQUIREMENT

Krishna Fashions Ltd

64 Athwa Lines

Surat – 567 002

Gujarat - India

Dear 20th Dec 2011

It is a pleasure to inform you that we are a multinational company having collaboration with Finshu

Inc, Shenzhen for manufacturing Textiles. We are in need to fill the position of Executive, Foreign

Affairs at Surat. A copy of our announcement is attached. We have also attached a copy of our scope

document which should provide you with detailed information about our our profile and scope of the

company. Candidate should be

• Fluent in writing and reading Chinese language

• Fluent in making documents and communications in regional as well as Chinese.

Salary is no bar for the eligible candidate. Any experience within the profile would be an add-on

advantage.

Email all your resumes on [email protected] on or before 7 days from this published

advertisement.

We would like to take this opportunity to invite you to apply or nominate individuals who are well-

suited for this position. We are genuinely interested in recruiting candidates from diverse ethnic and

cultural backgrounds.

Sincerely,

Mary John

Krishna Fashions

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Answer (iv)

JOINT ADMISSION EXAMINATION BOARD, 2005 The joint administration board has its board meeting held on 17TH SEPTEMBER, 2005 at KOLKATTA

and has declared some rules and dates for examination IMPORTANT RULES FOR EXAMINATION 1 Date of registration (a)online 20‐12‐2005 (b)offline 25‐12‐2005 2 online website www.joint admission board .com 3 Date of examination (a)online 20‐1‐2006 (b)offline 28‐1‐2006 4 Centre of examination as indicated in your card 5 Result of examination (offline) 23‐3‐2006 6 score card after 20 february,2006 (if demanded) 7 Age requirement 23 to 27 Years

IMPORTANT NOTES

• 60% marks minimum( 10+2)

• 55% marks required for other classes i.e.sc, st,obc

• Only 2 attempts with effect from jee-2006

• Joins any of the IITs through JEE-2006 wiil not be permitted to appear in JEE in future

• Candidate who have passed their qualifying exam in 2005 or earlier will be allotted to appear

in 2006 as last chance(with no consideration of marks or attempt at JEE subject to age

requirement)

Chairman JOINT ADMISSION EXAMINATION BOARD Email - ____________________

business_communication - answer

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