CASE STUDY
The fiercely competitive Indian airline industry witnessed as many as three giant merger and acquisitions Jet Airways-Air Sahara, Indian Airlines-Air India, and Kingfisher Airlines-Air Deccan in 2007. Of them, the Kingfisher-Air Deccan deal was a strategic alliance with a difference. The two airlines decided to operate as distinct legal entities with separate brand identities. Air Deccan had a substantial brand equity among the consumers and had became synonymous with low-cost travel in India. However, Vijay Mallya, Chairman of Kingfisher Airlines, decided to adopt a rebranding exercise for it. The exercise involved renaming Air Deccan as ‘Simplify Deccan’ with a tagline ‘The Choice is Simple’, replacing the previous famous tag line ‘Simplifly’; replacement of logo, colour, uniform, old aircraft, and delivery of services. This rebranding was intended to give it a premium look, increasing its airfares. The company thus modified its business model from a low-cost to a valuebased airline model. The industry was abuzz with speculation that Kingfisher was planning to increase its stake in ‘Deccan’ to 51%, with an objective to have a greater say in the decision making process. However, analysts were skeptical about Deccan’s prospects of attracting a wider target audience.
Answer the following question.
Q1. Discuss strategic alliances as a business expansion strategy.
Q2. Debate the consolidation trend in the Indian airline industry.
CASE STUDY
In early 2006, Adidas, the world’s second largest sporting goods maker has acquired Reebok International Ltd (Reebok) to expand its global reach and give a competition to Nike, the market leader in US market. After nine months of acquisition, sales of Reebok-branded shoes and other apparel have fallen by 7%. In 2007, Adidas has launched a new marketing and branding strategy for Reebok. The case discusses Adidas’s brand strategy for the revival of Reebok.
Answer the following question.
Q1. Discuss Adidas’s brand strategy for the revival of Reebok.
Q2. Explain the dynamics of US foot wear industry and Adidas’s new marketing strategy
CASE STUDY
“Interested in reducing that ‘extra flab’ on your body in a matter of hours? Would you like to grow hair on that balding pate of yours in just a few days? All you need to do is watch the television (TV) and order the ‘miraculous’ products being advertised through the phone.” Welcome to the world of teleshopping networks, a phenomenon that had become a part of the lives of Indian TV viewers by early 2000. Day in and day out, customers were swamped with images of models showing off their ‘fabulous flat abdomens,’ ‘blemish-free skins,’ selling disease-curing teas, wondrous kitchen and household equipment, on almost every TV channel. Though teleshopping networks became operational in the mid1990s in the country, their presence was never felt as strongly as it was during the early 21st century. A majority of these infomercials1 were dubbed versions of English (or other foreign languages). Many consumers found it extremely amusing to see foreigners mouthing chaste Hindi (and other regional Indian languages) while advertising these products. However, it was the nature of the products being offered by these networks that attracted the maximum attention. Most of the infomercials featured products that claimed to provide miraculous results. There were products, which could help one reduce weight and get into shape without exercise or dieting. There were other products that promised to make people give-up smoking and improve body posture. The range of products included creams, potions, solutions, toys etc. Analysts questioned the reliability of such personal care products that claimed to beautify and tone up the body in a matter of days. They considered these infomercials, which depicted common people using the product and explaining its effectiveness, a farce. They argued that, these people were paid to speak well about products. Analysts criticized the teleshopping networks for trying to deceive the viewers into buying products with the belief that those people had actually used them. Despite these allegations, teleshopping as a concept was gaining popularity in India and more and more customers were showing readiness to try innovative product.
Answer the following question.
Q1. Give the reasons for the success of teleshopping in India
Q2. Discuss the process of marketing for teleshopping.
CASE STUDY
The changing attitudes of consumers towards healthier lifestyles and the subsequent decline in the CSD consumption during the 1990s led the soft drinks manufacturers to push noncarbonated beverages too. Not to be left behind, over a century old beverage maker Coca-Cola Inc., having the world’s most ubiquitous brand ‘Coca-Cola’ Began to concentrate on the noncarbonated beverages segment since the end of 1990s. It began offering a diversified range of products like coffee, tea, health drinks, sport drinks, juices, bottled water etc., under various brand names. Even though Coca-Cola has a strong brand name, it has not extended the ‘Coca-Cola’ brand to its non-abrogated beverages and is promoting these beverages under different brand names. This case facilitates discussion on whether it is the right move for Coca-Cola to adopt a multi-branding strategy while holding one of the world’s strongest brands.
Answer the following question.
Q1. Discuss Coke’s product diversification strategy.
Q2. Describe the rationale behind Coke’s multi-branding strategy and its probable pros and cons.