Marketing Management II

CASE VI - Twin Cities Bottling Company

SECTION-B

SUBMITTED TO: PROF. SHYAM VYAS, PH.D. SUBMITTED BY: GROUP NO.- 8

DUE DATE: 23/11/2010 SUBMITTED ON: 23/11/2010

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CASE SUMMARYTwin Cities Bottling Company is the second leading cola company in its market territory, and had hoped to move the brand into the lead in the Twin Cities. The company has 30% of the

market share before the promotional campaign. Its major competitor had maintained a steady 40% share for a number of years. The southern city served by Twin Cities has a population of approximately 250,000 in its market area, of which approximately 24% are black. The bottler is not famous among blacks. The one of the objectives of the promotional campaign was achieve more popularity among blacks. The campaign included cents-off coupons contained in newspapers and direct-mails. Emphasis was placed on promoting the 2-litre size plastic bottle of the cola, particularly within supermarkets. The bottles displayed attractive female star of Dallas and stressed on reduced price. Twin Cities Bottling targeted the area’s newest and largest supermarkets. The number of spot TV ads was also increased. Twin Cities bottling management reviewed the program to be a success after two months. Although the promotion had increased the bottler’s overall market share up to 35%, the company was still not famous among black consumers.

QUESTIONS AND ANSWERSQues.1 what marketing issues are raised in this short case? Be specific as to what issues your group identifies and why. Mistakes the company made – or the wonderful things it that may contribute to a successful marketing effort?

Ans. various marketing issues raised in this short case are:

Segmentation: Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviors. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. Segmentation is one of the issues in this case as it is clearly mentioned that the Twin bottling firm was a Market Challenger & it wanted to increase its sale among the Black Customers.Targeting: Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy. In the case presented Twin Cities Bottling had particularly targeted the area’s newest and largest supermarkets for special emphasis since these accounted for the biggest volume of the cola’s store sales. In the case presented Twin Cities Bottling had particularly targeted the area’s newest and largest supermarkets for special emphasis since these accounted for the biggest volume of the cola’s store sales.Positioning: Once a market segment has been identified (via segmentation), and targeted (in which the viability of servicing the market intended), the segment is then subject to positioning. Positioning involves ascertaining how a product or a company is perceived in the minds of consumers. Although the promotion had been able to shift the bottler’s overall market share up to 35% during the period, it had not appreciably increased its share among black consumers. As per the case, the firm is aware of the existence of the various segments of consumers in the market. But the marketing strategy was a generalized one which they assumed would attract all sections of the market. There lies the scope for the firm to focus on a particular segment of the market and work on improving the results.

Ques.2 what is the relationship between “segmentation” and “target market” selection?

What in your group’s opinion are good segmentation bases? Has this company done a good job of identifying the segments, selecting a target market – and finally executing a successful marketing effort?

Ans. Segmentation precedes Target market selection. First the marketer divides the market into a number of segments. A true market segment meets all of the following criteria: it is distinct from other segments, it is homogeneous within the segment; it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups.

The Bases for good segmentation are as follows – Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behavioural Segmentation

According to our group the firm was aware of the segments of consumers present in the twin city. They are the market-challengers with a market share of 30 % before the promotion. The Twin city bottle brand served a town of almost 250,000 population which consisted of whites as well as blacks and the firm was aware of this. The firm had identified the segments but did not choose a particular target market. They instead went for a generalized marketing campaign which they assumed would attract all sections of the market. Thus improvements are required in case of segmentation, target market selection and executing a successful marketing effort.

Ques.3 As an expert group consulting on marketing & consumer behaviour matters, advise Twin Cities Bottling Company management on future promotional and other marketing efforts and activities.

Ans. As an expert group consulting on Marketing and Consumer behaviour we would suggest the following measures –

1. Identify the Target Market – There must be proper Target audience,the Twin Bottling Company should have focussed on the Black market also specifically as it was the objective of the company to increase the sales among the black community as well.

2. Creating different products for different segments : The Company needs to check the ingredients composition, as it may contain certain ingredients which their society may not consider good or healthy.

3. Economy Packs : The black population may not be the elite population of the country and as the promotion was only for the 2 litre bottle, they may not have found it economical. If this is the case, then economy packs may help.

4. Sales promotion – The twin bottling company is already using this mode very effectively still other than offering price discounts the bottling company can provide Lucky draw gifts.

5. Online Promotion – Advertising on the Internet and giving promotional offers on the internet can greatly enhance the brand sales.

Ques.4 Identify a brand in the Indian marketplace which may have inadvertently “not targeted” the segment that they actually wanted to direct their marketing effort at – and therefore the results were not exactly what was anticipated.

Ans.

RELATIONSHIP TO CONCEPTSSTP: The twin bottling company was targeting the entire population which included both blacks and whites. However the Brand specifically targeted the newest and largest super market area which had large cola sales. The company was positioning itself as brand in the mind of the users which was cheaper and highly affordable. Special reference was made in all the promotion offers to the discount the cola company was giving.

Sales Promotion: The Company was following the concept of sales promotion in their entire campaign by providing discount on their product and promoting the sales of the product.

Integrated Marketing Communication: The Integrated marketing concept is being used here where in the various communications medium such as Advertising and Sales Promotion all are reinforcing the discount offers being made by the cola brand.