Marketing management

1. Marketing Management
1. Tesla Model 3 is planning to launch in December 2021 in India. As a Marketing
Consultant explain the steps that you will suggest for the New Product Launch?
Answer:
In this competitive world, you need to assess the market and make necessary changes in your
marketing strategy, apart from this, to attract greater number of customers, you should regularly
come up with new and innovative products and it becomes really important in automobile
industries where you should take the assistance of latest technology and innovation and
manufacture the products accordingly. It is essential to develop new products or alter or
improve the existing ones to meet the oft-changing customer. Tesla is one of the biggest car
manufacturers in the world and it is planning to enter in India as well. As mentioned in the
question, Tesla Model 3 is planning to launch in December 2021 in India and for this new
launch, it needs to follow certain steps which will be mentioned later in this solution.
Steps in new product development and launch
Idea generation: Idea generation implies exploring ideas to develop new products. It can be
done through brainstorming sessions and involves a creative thinking process. An idea can be
generated from the following sources:
 Brainstorming: It refers to the method that aims at creating a pool of ideas based on
four general rules.
 Surveys: It refers to the method in which an organisation tries to seek out information
from people about their needs and desires. This helps the organisation in identifying
market trends and opportunities.
 Interacting with people: It helps to generate ideas for new product development. An
organisation consults various experts, such as scientists, engineers, customers,
marketers, employees, channel members and competitors to get new ideas.
This is the first step of any new product development where you generate the idea using various
techniques mentioned above. In our case, company should think about the innovation and
technological tools it can put in, in the new model of Tesla. For this, there will be some
meetings with the experts so that different suggestions could be obtained.
Idea screening: Idea screening refers to selecting the ideas that help in achieving the objectives
of an organisation. Ideas are analytically assessed by the personnel of the organisation to
separate the most eye-catching options. Screening depends upon the number of ideas; thus; it
may be done in rounds involving executives of organisation who judge the viability of ideas.
At this stage, company may explore various options in terms of features, pricing, distribution,
cost, expected demand etc. Therefore, the purpose of screening the ideas is to select the most
profitable idea.

2. Concept development and testing: The marketer, with a few ideas in hand, tries to find an
initial response from customers, distributors and its workforce. Focus groups are assembled,
where the ideas are presented often in the form of presentations to a group. In concept
development and testing step, the organisation takes the decision whether the idea should be
developed into the final product or not. The idea development includes several concepts, such
as usage, segment and primary benefits of a product. Concept testing helps to predict the
profitability of a new product before its launch in the market.
In the given case, Tesla is planning to launch new model in India by Dec 2021 but before
launching, it needs to consider several points like marketing research about the demand of the
product and consumers’ perception about it, these details will help you to reach to some
concrete solution about the new product. If company finds everything positive and favorable,
it might proceed further to the next stage.
Market strategy development: Once the concept development and testing are done,
organization needs to develop the market strategy related to the new product like deciding the
target market, finalizing pricing and distribution strategy and strategy related to long term sales
and profits. Here, the target market will be all the people living in metro cities and belongs to
upper middle class and upper class. Pricing should be kept competitive initially and distribution
should be done using effective distribution channels.
Business analysis: Business analysis determines the feasibility of developing a concept into a
product. The feasibility can be measured by estimating the cost of production, operational
costs, sales volume and profit margin. An organisation should also determine the compatibility
of a product with its mission and strategy along with financial and marketing viewpoints.
Product development: Finally; you come to this stage where you develop the product so it
converts the idea into a physical product. Initially, an organisation designs a prototype of the
idea with the help of research and development. An organisation needs inputs, such as price,
size and design of the product from its customers as soon as it prepares the prototype. In the
product development process, customers are exposed to the real product as well as other aspects
of the marketing mix, such as advertising, pricing and distribution.
Test marketing: Products that come to this category are arranged to be tested as real Product.
Market testing checks the suitability of the product in the market by giving free samples to
customers and getting their feedback. Some organisations skip this stage and directly launch
the product in the market. However, some organisations conduct market testing to learn
behavioural and emotional aspects of customers before commercializing the product in the
market. Here, company should test the product in the market with auto experts and assess the
results and if the results are favourable, you are ready to launch the product commercially.

3. Commercialization: Commercialization refers to launching of a product in the market. An
organisation decides how, when, where and to whom the product should be distributed. So, at
last, Tesla model 3 can launch in India by December 2021.
Finally, it can be said that, Tesla should use above mentioned steps to first develop and later
launch the product in Indian market. As India is a big country and there are many established
players already operating here, Tesla should plan everything and execute it accordingly.

4. 2. Parle Agro makes its entry into the dairy segment with a premium and high-quality
range of flavored milk products, 'SMOODH'. With disruption inborn in the brand's
philosophy, SMOODH becomes the only flavored milk beverage in the global market to
be available in 85 ml Tetra Paks and priced at only ₹10. Suggest a suitable promotion mix
for the new launch.
Answer:
Marketing strategy and planning
Marketing processes aim to deliver increased profitability in business through improved
marketing strategy and marketing plan development. For a company to get marketing success,
they must have an effective marketing strategy and plan. Another important aspect of
marketing strategy is marketing planning. It is a process of designing the marketing blueprint
for the future. A marketing plan is a broad set of guidelines as to how the firm is going to
accomplish its strategic goals. Marketing implementation and control are equally important.
High-performance companies must sharpen their expertise in implementing and controlling
marketing activities that will give them an edge in today’s fast-paced business world.
Given case
In the given case, Parle Agro has come up with the premium and high-quality range of flavored
milk products, 'SMOODH'. We all know that Parle Agro is one of the biggest companies
operating in our country and when it launches any product, we would want to give it a try,
moreover, company has decided to launch 85 ml Pack priced at Rs.10, which is its USP.
Currently, you would not get any branded flavoured drink for Rs.10 so this is a good move and
effective marketing strategy of Parle Agro. Now, it needs to work on the marketing and
promotion part so that it creates awareness among the general public regarding the new launch.
There are various promotional tools which could be adopted by the company and promote
SMOODH.
The importance of promotion has increased because of the widening of markets. The physical
distance between the producers and the consumers, the increase in the number of buyers and
the desire of the seller to capture a major share of the market have made it absolutely necessary
for every producer to undertake the activity of promotion.
Suitable promotion mix for SMOODH launch
Social media: The social media on the Internet has become crucial in the marketing arena as
more and more people are joining social Websites like Facebook and Twitter. In recent years,
the popularity of social networking sites has shot up in a phenomenal way, attracting millions
of visitors who stay logged in for hours, in many cases, all day. This has made these sites
important for e-marketing, especially given the fact that a large number of tech savvy customers
obtain updates about products and services from social networking sites such as Facebook,
Twitter and LinkedIn. Rather than seeing your company as "trying to sell" something, the social
network can see a company that is in touch with people on a more personal level. This can help

5. lessen the divide between the company and the buyer, which in turn presents a more appealing
and familiar image of the company.
Company should definitely take the advantage of social media it is a good option to reach out
to large customer base. Company may use social media to learn about the feedback from the
customers, customers’ preferences, opinions etc.
Advertising: Advertising is the oldest method of promoting any brand. Advertising consist of
all the activities in presenting to a group a non-personal, oral or visual, openly sponsored
message regarding a product, service or idea. Advertising complements or may substitute for
personal selling.to persuade the buyers. The advertiser makes his products, buyer-satisfying. It
is an art of influencing the human action to possess one’s product. Advertising increases the
sales volume of the product. Hence mass production is possible. This leads to reduction in the
cost of production. Stabilization of sales volume is possible through advertising by the process
of repetition. Regular and frequent advertising leads to regular flow of sales.
Company should take the advantage of advertising to promote its brand. As it is coming up
with totally different product, it should go for certain type and level of advertising like one TV
ad may be prepared with any celebrity which will be very much helpful in this scenario. Though
company has already started promoting this way and we can see advertisement of SMOODH
where Varun Dhawan is endorsing the brand. This kind of promotion is highly effective and
beneficial.
Publicity: Publicity is defined as the non-personal stimulation of demand for a product, service,
or business unit. It is obtained by planting commercially significant news about a product,
service, or business unit in a published medium or by providing favourable presentation in the
radio, television, or on stage that is not paid for by the sponsor. Negative publicity can damage
the company’s or product’s image, resulting in reduced demand for the product. Company
should do publicity about its new and latest product. They may take part in any event or
organize any event where they can showcase their products so that they can reach to mass
number of customers.
Tie-ups with institutional customers: Company may also plan to join hands with institutional
customers like railways, flights etc. where it can supply its products in large quantities and this
is also a good way of promotion as greater number of customers will notice and try your
products and if they like it, they will definitely like to buy as well.
It can be concluded that, when you are launching any new product in the market, you need
effective promotional strategy so that you can create awareness among the customers regarding
your launch. There are various promotional tools which can be used by Parle Agro in the given
scenario and I have mentioned above. In this modern world, you need offline as well as online
promotion of your product and then only you can expect good response from the customers.

6. 3. Read the case & answer the questions based on the case: Kia Motors announced that
it has opened its first digital showroom in India, moving towards providing digitized
services to its customers. The showroom is located in Prabhadevi which is one of the
busiest hubs of Mumbai and is equipped with 3D configurators with a digital catalogue,
a Heritage Wall, Digital Spec Boards and a media wall. The showroom is designed to
display Kia’s current product portfolio with 3D configuration. The 3D configurator zone
in the facility enables the customers to customize and design their favorite Kia cars and
witness their intricate details. All the showcased vehicles will be equipped with digital
spec boards to share all the relevant information about the product. The content
displayed in the showroom is controlled directly by Kia India, providing greater
transparency, a sense of security and reliability to the customers.
a. ‘The 3D configurator zone in the facility enables the customers to customize and design
their favorite Kia cars.’ Basedon this statement explain which type of targeting strategies
is initiated by Kia Motors. Justify your reason.
Answer:
Importance of having good customer relations
In all businesses, Customer is the king as you cannot survive in the market without good
customer base. It is the duty of all service providing companies to take special care of their
customers as sales is not the only motive but there should be excellent after sales service as
well. Companies must do everything to satisfy their customers as Customer satisfaction is the
best indicator of how likely a customer will make a purchase in the future. Asking customers
to rate their satisfaction on a scale of 1-10 is a good way to see if they will become repeat
customers or even advocates. In a competitive marketplace where businesses compete for
customers; customer satisfaction is seen as a key differentiator. Businesses who succeed in
these cut-throat environments are the ones that make customer satisfaction a key element of
their business strategy. Satisfaction plays a significant role in how much revenue a customer
generates for your business.
Kia Motors entered in India few years ago and already enjoying with good customer base and
the main reasons are quality products, good customer relations, after sales service, promotion
etc. Keeping in mind the convenience and choices of the customers, it has opened digital
showroom in Mumbai which is very much innovative and uses technological tools to take care
of the customers needs.
Targeting strategies
 Undifferentiated marketing
 Differentiated marketing or multi-segment targeting
 Focus or concentrated targeting
 Customized marketing

7. Targeting strategy used by Kia Motors
All the major car manufacturers follow multi-segment targeting or differentiated marketing as
they manufacture cars for different segments and accordingly target the market. Kia Motors is
also doing the same in the given scenario so it is following multi-segment targeting strategy. It
is the most sought after target market strategy because it has the potential to generate sales
volume, higher profits, larger market share and economies of scale in manufacturing and
marketing.
As mentioned in the question that, Kia Motors has opened one digital showroom in Mumbai
where the 3D configurator zone in the facility enables the customers to customize and design
their favorite Kia cars and witness their intricate details. All the showcased vehicles will be
equipped with digital spec boards to share all the relevant information about the product. It is
clear that Kia motors is willing to customize its products as per the demand and preferences of
the customers and it is following customized marketing strategy. Customized marketing is
associated with close relationships between the supplier and customer because the high value
of an order justifies large marketing and sales efforts being focused on each buyer.

8. b. In your opinion, which segmentation strategy is adopted by Kia Motors?
Answer:
Market segmentation
A ‘market’ can be defined as a group of customers who exhibit similar needs and have the
ability to satisfy those needs. Market can also be defined in terms of the benefits sought by the
customer, not in terms of particular products or technical specifications. We know that
consumers are of two different kinds i.e., final consumers and business buyers. In other words,
we have broken down a broad, heterogeneous group of customers into two or more
homogeneous segments. This implies that you can be more specific about directing marketing
activities to meet the needs and wants of the two groups. In short, you have segmented the
market.
Segmentation is more likely to be successful if a step-by-step approach is used. Segmentation
strategy is not a simple process. It is the result of applying a systematic and analytical process
to the crucial decisions about product market entry. A product can be targeted for a single
segment through single segment concentration strategy. The company can also decide to select
few products and target each of these product alternatives for specific market segments. The
marketing manager can decide a single product for all the market segments and use product
specialisation.
Types of segmentation strategy
Geographic segmentation
This is the simplest form of segmenting the market. Here, the marketer divides the target market
into different geographical units such as nations, states, and regions.
Demographic segmentation
While it is easy to find and group people living in one geographic location, there may be a large
variation in their demographic characteristics. Since consumer needs, wants, and demand
patters are directly linked with demographical variables, this method of segmentation is popular
among marketers.
Behavioural segmentation
In the case of behavioural segmentation, the market is divided on the basis of purchase decision
and product or brand usage made by consumers.
Psychographic segmentation
Other than the demographic methods of market segmentation, segmentation on the basis of
psychography is another popular method among marketers. Psychographics is the study of
lifestyle of individuals.
Segmentation strategy adopted by Kia Motors
In my opinion, Kia Motors adopted demographic segmentation and behavioural segmentation.
Demographic variables include factors like age, gender, family size, family life cycle, income,
occupation, education, marital status, religion, race, generation, nationality, language and

9. social class. Since consumer needs, wants and demand patters are directly linked with
demographic variables, this method of segmentation is popular among marketers.
Apart from this, Kia Motors also adopted behavioural segmentation. Dividing the market on
the basis of variables such as use occasion, benefits sought user status, usage rate, loyalty status,
buyer readiness stage, and attitude is termed as behaviouristic segmentation. Buyers can be
identified according to the use occasion when they develop a need and purchase or use a
product.