Marketing Myopia (team 5)

Marketing Myopia Presented byVruti Shah Vivek Kedia Yashraj Bhatt Viraj Patil Vivek Kapasi

Key Learnings • • • •

What business are we in? Substitution Effect Complacency – Population Myth Achieving Sales Target – Production Pressures • Focus on Product & not Customer

What Business are we in? • • • • •

Growth is life Obvious opportunities exhausted THINK AGAIN! Helicopter View Cater to the sector & not the industry.

What Business are we in? MULTIPLEXES •Selling EXPERIENCE… NOT Movies •Facilities – Cafeteria, Parking space, Shopping, Recreation

What Business are we in? MTNL • COMMUNICATION & NOT Telecommunication. • Mobile - Faster & cheaper.

What Business are we in?

•INDIAN POST OFFICE

Substitution Effect • Every product is substituted… sooner or later. • The belief – no competitive substitute will be available – MYOPIC APPROACH.

Substitution Effect •CABLE OPERATORS – TATA SKY (DTH)

Substitution Effect • Identified Potential Threat – TATA 1Lac Car • Exploring Introduction of $3000 Car

Population Myth - Complacency • Increase In Population – Increase in Income - Increase in Sales??? • To Survive – CUSTOMER FOCUS – Innovation

Population Myth Complacency

•Largest Network of Branch – Assumed Leadership Position •No Focus on Service – Today having tough time

Population Myth Complacency •Sugar Industry – Complacent •Customers Demanding Low-Calorie

Products

•Absence Of Customer Oriented innovation •Availability of low calorie,economical substitute – Kills the Market

Production Pressures – Hardcore Selling •Mass production – Low cost – But No guaranteed sales •To MOVE products – Selling Is done and not Marketing •Creating, Delivering And SATISFYING Consumer is required

Production Pressures – Hardcore Selling •Mobile Service Provider - DSA •To Reduce Cost – increase Subscriber base

Production Pressures – Hardcore Selling •Banks like ICICI use aggressive marketing for Credit cards & loans.

Production Pressures – Product Provincialism •Change your product to adapt to the changing patterns of consumer tastes & needs. •No amount of improvement can stave off its death.

Dangers Of R&D •Even a Superior product Sells If & Only If Consumer need is satisfied & it is well marketed. •Excessive R&D sometimes leaves marketing strategies high & dry. •Understand the Consumer First and then develop the product to suit his need.

Dangers Of R&D •Microsoft “ZUNE” – “Apple iPod”

Dangers Of R&D •POWER(HPCL) & SPEED(BPCL) could have done with better marketing. •The companies don’t focus on other possible sources of energy.