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Name: Mahesh Kadlay Roll No: EMBA07/A/08 Sub: Marketing Management

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Name: MAHESH KADLAY

Roll no: EMBA07/A/08


Sub: Marketing Management
 
Application Exercise
(Assignment to be submitted)(90 min)
 
         Prepare a Brand Plan for any brand in your organization. This
should be based on discussions with the relevant brand
managers. Use the structure given for the group work to present
the Brand Plan. In addition also recommend brand activities and
priorities for the coming year as per the format given in the ppt
used in class.
 

I am a part of the Wire Division of Tata Steel; Mumbai. The Wire Division (WD) is
engaged in the manufacturing of steel wires. The steel and wire business
operates from Borivli and Tarapur.Wire Division is the largest manufacturer of
Steel Wires in India and the 5th largest wire manufacturing unit in the world.

WD is a customer focused manufacturing unit of Steel Wires- coated and black,


single and stranded. Its manufacturing facilities at Borivli and Tarapur make
about 1,80,000 mt/year of Steel Wires with in-house capacity and about 150,000
Mt/year with outsourced manufacturing. It has divided its business into two broad
groups namely Institutional Business and Retail Business, to give focused
offerings to its varied customers. Institutional business sub- segments include
Auto, Power, Construction and Annealed wires

I have made a Brand Plan for our Galvanized Iron (GI) wires used in Grape
farming. This Brand is called Tata Wiron. I have attempted to make this Brand
plan by taking inputs from the Marketing team which was involved in this activity.

(The ppt given in the class did not contain many inputs for making a Brand Plan
hence I have gone about this assignment with inputs from Aakers
‘s book and what I could get from the net.)

Tata Wiron –

Inputs from Brand Identity Prism:

a) Persona- Trustworthy & Reliable


b) Culture- Fair dealings
c) Self Image- One of a kind
d) User Image- No nonsense & Intelligent
e) Relationship- long-term & Fair
f) Physique- Attractive packaging & user friendly coil weight.
Value Proposition- Tata Wiron:

• Functional benefits
- Uniform & Superior Quality
- Longevity
- Ductile- easily pliable

• Emotional benefits
- Enduring peace of mind of having bought a genuine product

• Self-expressive benefits
- Of having thought of life cycle costs & confidence that mandap will not
collapse

Brand Positioning:

Customized & Superior performance

Based on these inputs I will attempt to make a Brand Plan with the inputs
available to me thru’ Aaker’s book and the Net:

Key elements of a brand plan would include:

Brand vision (long term) –till 2011

- In line with the Group target, at least 66% of all products sold by Tata
Steel will be branded products
- All our Brands will be Top Of Mind Awareness names
- All our Brands will enjoy “Most Preferred Brand” status
- All our brands will enjoy a premium price of at least 10% more than the
next highest priced brand
- Tata Steel will be known as a creator and manager of steel related product
brands, rather than as a manufacturer of steel products.

Brand mission (mid term) – till 2008

The mid term mission for the brand is to ensure customer enduring peace of
mind and command a premium of at least 10 % over closest competitor.
Market definition

The market will be the grape growing areas of Sangli, Kolhapur & Nasik.The
market size will be the GI wires required for constructing New & Repairing
mandaps used in Grape cultivation.

Situation analysis:

Currently the wires used for grape farming are supplied by Tata, Bedmutha,
Vandana, and Aarti & Raipur Parties. All wires were sold as Tata Wires because
at retail level Identification of wire was lost. Hence spurious wires were sold as
Tata Wires.

Market size and forecasts:

Current Market size for GI wires used in Grape Farming is about 900
MT/month .This market is expected to grow @ 11 % per annum based on the
increase in Grape cultivation area in hectares per year.

Market dynamics and trends:

Tata market share is around 75% in this market with Bedmutha second with 10
% and the remaining 15% is shared by Vandana, Aarti & Raipur parties. The
trend of this share has been very similar over the last 10 years with minor
changes occurring.

The competitors were passing off their product as Tata wire. The end user (grape
farmers) preference is clearly for Tata Wire on account of superior product
attributes such as ductility, strength, uniform zinc coating and longer life of the
Tata GI wire.

Market structure and share of trade at supplier, intermediary, and end


customer level segmentation

The Channel structure that exists in the market is as follows:

Manufacturer------ Distributor-------- Retailer------ End User (Grape farmer)

Normally in each area for eg Sangli & Kolhapur we have 1 Distributor, 1 in Nasik,
1 in Mumbai etc. each distributor services around 300-400 retailers in his
territory. Retailers are normally small shops that sell wires or village hardware
shops.

Normal mark ups that exist in this trade are :

Distributor level – 10 %
Retailer level- 20-35%

This product is segmented based on end usage- Grape farming

Brandscape (own and competitor brand architectures and performance)

Our Brand is called TATA WIRON.The Brand is based on Superior Product


attributes, Tata Logo, Attractive & Distinct packaging –Yellow Packing with blue
straps, Exclusive Channel- The Distributors and retailers who sell our Brand
cannot sell competitor’s GI wires.

No competitor has branded its GI wire so far.

Alternative scenarios for the next 2-5 years:

Scenario 1 (Optimistic):

Due to Tata Wiron our Market Share grows to 80-85%


Our Premium is 10-15 % over closest competitor (translates to Rs.5500/per MT
of GI wire)
Brand recall for Tata Wiron is very high
Tata Wiron creates high Brand Value & Equity
Tata Wiron becomes umbrella brand and is deployed to our other wires.

Scenario 2 (Pessimistic)

Competitors especially Bedmutha launches a brand & goes for exclusive channel
or direct supply to end user.
Competitors improve product quality & service and become comparable with our
product.
Tata Market share drops to 60-70%
Premiums drop to 0-5%

Key programs and their goals:

Sr Key programs Goals


no
1 Create Brand with Professional agency Brand
2 Brand awareness (internal) Awareness in Wire
Division
3 External awareness- thru Hoardings & Van Brand awareness
campaigns
4 Standardizing Product & Packaging Brand Value
5 Set up exclusive channel Channel
6 Training- Internal & Channel Knowledge of Brand
7 Brand audit Brand value
Brand objectives:

The brand objective is to give customer enduring peace of mind for having
purchased a genuine Tata product. Also capture the Value in the chain through
commanding a Premium over competition.

Added objective is to create a major place in customer mind space and then
extend the brand to other wires from the Tata fold.

Change analysis (what will have to be done differently):

The following items will have to be done:

1. Quality Control needs to be more stringent


2. Packaging Material needs to be standardized
3. Labels need to be standardized
4. All employees in response chain need to be made aware of their
roles & responsibility regarding the Brand
5. Channel members need to be trained on their roles & responsibility
regarding Brand
6. Brand awareness to target customer groups thru’ Hoardings & Van
Campaigns
7. Brand audits to be done

Brand action plan:

Work of Creating Brand, Developing Internal/External awareness, Ads, Exclusive


channel, training for channel, monitoring Premiums etc have been completed
over the last 2 years. Hence the Plan produced below attempts to
improve/strengthen some activities and take the Plan forward. This Plan I have
made post discussions with the Marketing people who are responsible for this
activity.

An illustration of how my Brand Plan would appear has been presented below:

Sr no Actions Responsibility End date


1 Improve QC of GI wire Head-QA Dec 06
2 Standardize Packing Material & Labels Head- Dec 06
Inbound
3 Check on Van Campaigns Head- Jan-07
Marketing
4 Engage Professional agency to conduct Head- Jan-07
Brand audits & define scope for audits Marketing
5 Conduct Brand audits Head- Mar-07
Marketing
6 Summarize & Present audit findings to Head- Apr-07
Leadership team Marketing
7 Make & implement plans to bridge gaps Concerned Aug-07
emerging from Brand Audit agencies
8 Take inputs from Professional agency to Head- Oct-07
extend/develop brand for other retail Marketing
products – like Welding Wire, Springs etc
9 Develop plans for extending Brand to other Head – Jan-08
products Marketing
10 Continue Brand Premium monitoring Head- ongoing
Marketing

Some Metrics that I would want to be monitored & reviewed at defined


frequencies pertaining to the Branding exercise:

BRAND Brand Metrics


  TATA Steel -Wire Division
  05-06 06-07 07-08 08-09 09-10
           
VOLUME of BRANDED (MT) 36000 50000 53000 57000 60000
VOLUME of TOTAL (MT) 270000 290000 305000 320000 330000
%age of BRANDED (using MT) 13% 17% 17% 18% 18%
NR of BRANDED (Rs./MT) 22800 22900 23100 23300 23400
NR of TOTAL (Rs./MT)          
NTO of BRANDED (Rs.Crores) 82 115 122 133 140
NTO of TOTAL (Rs.Crores)          
GTO of BRANDED (Rs.Crores) 92 128 137 149 157
GTO of TOTAL (Rs.Crores) 826 812 854 896 924
GR of Branded (Rs/MT) 25536 25648 25872 26096 26208
%age of BRANDED (using GTO) 11% 16% 16% 17% 17%
Market Share of BRANDED 28% 30% 31% 32% 32%
PREMIUM (Rs. / tonne) 1,450 1,523 1,599 1,679 1,762
PREMIUM (as %age of Branded GTO) 6% 6% 6% 6% 7%
PREMIUM (Rs. Crores) 5.2 7.6 8.5 9.6 10.6
Ad Spend (Rs. Crores) 1.75 1.25 1.5 1.5 2.5
Ad Spend (as %age of Branded GTO) 1.9% 1.0% 1.1% 1.0% 1.6%

This has been my attempt to make a Brand Plan with the inputs available to me.
Produced below are some visuals which exist and are being used for Tata Wiron.
These have been produced below so that what has been described above may
be understood better.

SOME VISUALS OF TATA WIRON:


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