Nitin bhai is feeling perturbed. His company Velvet Paints has recently acquired a Kerala based paints company Trichy Paints a year ago but he has been unable to merge the two brands till today - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

Nitin bhai is feeling perturbed. His company Velvet Paints has recently acquired a Kerala based paints company Trichy Paints a year ago but he has been unable to merge the two brands till today

Description:

DEC 2018 NMIMS Solved Assignments, NMIMS DEC Assignments, NMIMS Ready DEC Assignments, NMIMS 2018 DEC Assignments, NMIMS Customized 2018 DEC Assignments, NMIMS Unique Assignments, NMIMS Best 2018 Assignments. www.answersheets.in info.answersheets@gmail.com info@answersheets.in +91 95030-94040 – PowerPoint PPT presentation

Number of Views:0
Slides: 13
Provided by: infoanswersheets
Tags:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Nitin bhai is feeling perturbed. His company Velvet Paints has recently acquired a Kerala based paints company Trichy Paints a year ago but he has been unable to merge the two brands till today


1
Brand Management info_at_answersheets.in 91
95030-94040
2
  • Brand Management
  •  
  • Q1. RedPly (name changed) is a leading Indian
    plywood manufacturer. Along with plywood it also
    manufactures and markets allied products for
    furniture making including laminates, veneer,
    doors etc. though Plywood remains its largest
    revenue contributor. RedPly prides itself w.r.t
    its product quality and remains committed to
    providing the highest quality to its consumers.
    Over the years it has installed latest machines
    and equipment for high-class manufacturing,
    though it leads to escalation in production cost.
    RedPlys closest competitor is OrangePly (name
    changed), with unbranded players being the most
    significant competition.

3
  • OrangePly competes through flexible
    retailer terms and smart marketing and
    communication strategy while unbranded players
    offer 30-40 lower price. Plywood retailers and
    carpenters are the key influencer to customers
    decision. While customers (Home-owners) show a
    preference for RedPly, retailers try to convert
    them to brands offering higher retailer margins.
    Carpenters demand higher price for using branded
    plywood and assure home-owner about the quality
    of the ISI-marked products or unbranded
    products. Due to above factors RedPly is
    consistently losing market share and is facing
    price- pressures. Plywood market is dominated by
    the unbranded segment (60) with branded players
    (RedPly, OrangePly, others) forming the remaining.

4
  • Critically analyze the RedPlys market
    situation to identify its business challenges.
    What is/are the possible outcomes if RedPly does
    not respond to these challenges? Suggest the
    strategic options available to it. What are the
    pro and cons of each strategic option? (10 Marks)

5
  • Q2. Nitin bhai is feeling perturbed. His company
    Velvet Paints has recently acquired a Kerala
    based paints company Trichy Paints a year ago but
    he has been unable to merge the two brands till
    today.Velvet Paints primarily market is in the
    decorative paints segment. It is known for its
    quality and innovative products but has limited
    brand appeal specially in southern market. Trichy
    Paints has a broader product range across
    Decorative as well as Wood finish segments.
    Kerala is Trichy paints key market though it has
    limited presence in other Southern markets
    (Tamilnadu, Karnataka, Telengana etc.).

6
  • Nitin Bhai would like to do away with
    Trichy Paints as a brand and would only like to
    use the acquisition for expansion of production
    facility, personnel and distribution network.
    Multiple brands require separate marketing
    advertising expenditure. Nitin Bhai has ambitious
    plans for Velvet Paints and plans to make
    substantial expenditure on the marketing
    promotion to be able to take-on established large
    players. Being a mid-sized company, Velvel Paints
    has limited resources and multiple brands require
    separate marketing spend thus increasing the
    budget required. The key conflict here is
    regarding the Wood finish brand of Trichy Paints,
    Wood shine. Velvet Paints has no comparative
    product and Wood shine is a leader in its
    segment. Tampering with the brand may lead to
    market dilution.
  •  

7
  • To resolve the conflict, Nitin Bhai hires a
    Hyderabad based market research firm Marquee. The
    market research firm held discussions with the
    Trichy Paints management, trade partners
    (retailers, distributors, wood-painters) and
    consumers. Below were the key findings shared by
    the Marquee team.
  • Wooden furniture polish is a niche segment
    with Wood shine being the leading brand Wood
    shine has a very strong brand recall and brand
    connect Consumers are dependent on the
    wood-painters for the brand-selection and are
    often unaware of the product being used though
    customers want the best quality for their
    furniture with low sensitivity to price

8
  • Wood-painters have limited education and
    have strong association of Wood shine with
    existing name and logo
  • How would you explain the situation and
    brand challenges Velvet Paints is facing? What
    will be your advise to Nitin Bhai in regards to
    brand portfolio restructuring? What should he do
    with Wood shine? (10 Marks)

9
  • Q3. Happy SPA has recently undertaken significant
    advertisement spend to boost its membership. It
    published full-page and half-page ads in leading
    newspapers (Sample Ads in Appendix 1 and 2). It
    expected 30-40 jump in its membership but the
    response to the campaign has been disastrous.
    There have been less than 100 query calls with
    some Ads resulting in no query calls. This has
    led to serious deliberations within the
    management.
  • Happy SPA had started with the philosophy
    of providing value-based-pricing and professional
    servicing. In the over a decade of its existence
    it grew to 25 branches across

10
  • 5 cities in North and West India. In the last
    couple of years its membership had begun to
    stagnate. It had aimed to grow to 100 branches
    in the next 3 years through franchisee model. For
    franchisee led growth it was important for Happy
    SPA to boost revenue, something it has struggled
    with. A new strategy was formulated to boost
    footfalls and it was decided to target
    stress-based issues through SPA therapies. Stress
    has popularly been identified as the primary
    source of health-issue in the modern day life.
    Management believed that by linking its therapies
    to stress-ailment it will be able to increase
    relevance of its packages. Along with standard
    SPA therapies Happy SPA came up with stress and
    stress- linked ailments (fatigue, poor-sleep,
    back-ache etc.) specific therapies.

11
  • As part II of the growth strategy, it made
    significant expenditure in advertisement and
    expected it to drive growth and its expansion
    plans. But the poor response to its campaign had
    put brakes onto its plans and brought it back to
    the thinking room.
  • a. Conduct a survey (sample size 5-8 people)
    exploring linkage between stress-ailments and
    SPA. Present the survey-questionnaire and the
    findings. (5 Marks)
  • b. What do you think of the Happy SPAs new
    growth strategy and advertisements? What could be
    the reason for its lack of response? Analyse it
    according to the survey-findings. (5 Marks)
  •  

12
  • www.answersheets.in
  • info.answersheets_at_gmail.com
  • info_at_answersheets.in
  • 91 95030-94040
About PowerShow.com