Marketing Strategy

June 2023 Examination

Ans 1.
Introduction:
Companies must create effective tactics to counter their rivals in the highly competitive business
environment of today. One such business is an IT firm that is dealing with intense market
competition. To maintain its position on the world stage, this company needs to implement a
defensive market strategy. This article will address the idea of defending market strategy, its
significance for a company, and potential measures that the IT corporation may take to improve
the effectiveness of its internal resources.

Concepts:
A company's defensive market strategy is a series of steps it takes to defend its market share
from rivals. These tactics are employed to keep customers, enhance brand perception, and
preserve the company's standing in the marketplace. Making ensuring that the company's market
share does not decrease as a result of competition is the main objective of market defense tactics.
Defense of market tactics is important for businesses for a variety of reasons, one of which is that
it helps to safeguard profitability. Companies may see a decline in their profit margins as a result
of pricing wars, higher marketing expenses, and other issues as they contend with the
competition. By ensuring that businesses keep their market share and profitability, defending
market tactics helps to avoid these threats.

Application:
The IT company has a number of options for market position defense, including:
1. Product differentiation: The IT company can protect its market position by providing
distinctive and differentiated goods that are challenging for rivals to imitate. Continuous
innovation, spending on research and development, and strengthening the company's
brand image can all help achieve this. The IT company can maintain its market share by
attracting and retaining clients by providing distinctive products.
2. Strategic partnerships: The IT company can also join forces with other businesses in
strategic alliances to take advantage of their advantages and broaden its customer base.
For instance, it may collaborate with hardware producers to package its software products
with its hardware, expanding its consumer base. The IT company can strengthen its
competitive advantage, expand its market share, and increase its profitability by
developing strategic partnerships.
The IT company can take the following steps to improve the effectiveness of its internal
resources:
1. Employee training and development: The IT company can spend money on employee
training and development to improve their knowledge and abilities. As a result, the
company's goods and services may be of higher quality, and client satisfaction and
employee retention may also improve.
2. Process improvement: The IT company can enhance its internal procedures to make them
more productive and efficient. The business can save expenses, raise the calibre of its
goods and services, and increase client happiness by streamlining operations.

Conclusion:
In conclusion, the IT company must implement a defending market strategy to maintain its
global position in the face of strong market competition. Product diversification and the creation
of strategic alliances can help with this. The company can also boost the efficiency of its internal
resources by spending money on internal process improvements and personnel training and
development. The IT company may maintain its market share, increase profitability, and
strengthen its competitive advantage by putting these ideas into practise.

Ans 2.
Introduction:
One of the top fast-moving consumer goods (FMCG) businesses in India, Hindustan Unilever
Limited (HUL) has a diverse portfolio of product categories. HUL intends to examine the market
growth vs market share of its best-performing product categories as part of its growth plan. HUL
will use this analysis to make well-informed judgements about its product line-up and expansion
plan. The Boston Consulting Group (BCG) Matrix, a tactical tool frequently used by
organisations to analyse their product portfolio, can be employed by HUL to accomplish this
goal.

Concepts:
The Boston Consulting Group created the Growth-Share Matrix, sometimes referred to as the
BCG Matrix, as a strategic tool. Organisations use it to examine their product portfolio and
choose the best way to allocate resources. The relative market share and market growth rate
serve as the foundation for the BCG Matrix.
The growth rate of the market in which the product is sold is referred to as the market. The
market share of the product in relation to its rivals is referred to as its relative market share.
Products are divided into four groups based on these two criteria: stars, cash cows, question
marks, and dogs.
1. Products are categorized as stars if they have a large market share and a rapid rate of
market expansion. These goods have a great deal of room for expansion and profit, but
they also need a big investment to stay competitive.
2. Cash cows are products having a large market share but a slow rate of market expansion.
These goods bring in a lot of money and profits for the company and require little upkeep
to keep their competitive edge.
3. Products labeled as question marks have a low market share but a rapid rate of market
expansion. Although these items have room for expansion, their future is uncertain, and
they need a large investment to grow their market share.
4. Dogs: Dogs are products having a small market share and a slow rate of market
expansion. If they do not produce enough cash flow, these items may need to be sold off
because they have a poor potential for growth and profitability.

Application:
HUL can use the BCG Matrix for its top four performing product categories to examine the
market growth vs market share of its product portfolio. Let's think about the subsequent product
categories: Foods, beverages, home care, and personal care.
Due to their large market shares and slow growth rates, personal care and home care are expected
to be cash cows. These goods bring in a lot of money and profits for HUL and require little
investment to keep them competitive. HUL can invest in its other product categories with the
money made from these products.
Foods and refreshments have a large market share and a rapid rate of growth, thus they are likely
to be stars. These goods have a great deal of room for expansion and profit, but they also need a
big investment to stay competitive. HUL may keep making investments in these goods to take
advantage of their growth potential and hold onto their market share.
HUL's product portfolio, which has a small market share but a rapid growth rate, may raise some
red flags. For these goods to gain market share and realise their potential for growth, a sizable
investment is necessary. HUL can invest in these goods to grow their market share by using the
money made from its cash cows.

Conclusion:
The BCG Matrix is an effective tool that may assist companies like HUL in analysing their
product portfolio and making defensible choices regarding their growth plan. HUL can identify
the cash cows, stars, question marks, and dogs in its product range, and then build plans based on
an analysis of market growth vs market share. The market position and company expansion of
HUL will be aided by this analysis.
Ans 3a.
Introduction:
With a market of $950 billion, retail is one of India's fastest-growing industries. With more than 95% of all
retail sales and more than 70% of India's population living in rural areas, the rural retail sector has emerged as
a new development engine for the industry. Retailers and farmers alike may expand and thrive in this market,
which has prompted the rise of firms like ITC's Choupal Sagar, DSCL's Hariyali Kisan Bazaar, and Reliance
Retail, among others. The potential of India's rural retail industry, the factors driving its expansion, and the
steps businesses have taken to capitalize on this potential will all be covered in this essay.

Concepts:
With a potential market size of almost $600 billion, the rural retail sector has emerged as a new
development driver for the Indian retail industry. Numerous causes, such as rising income levels,
shifting consumer preferences, and the government's emphasis on rural development, all
contribute to the sector's growth. The expansion of the industry has also been aided by the low
cost of agricultural products, which allows rural consumers to buy necessities at a lesser cost
than their urban counterparts.
Rural retailing offers retailers distinctive chances to communicate with farmers and establish
long-lasting connections with them. By giving farmers direct access to the market, businesses
may pay farmers more for their agricultural products. Establishing purchasing centres like ITC's
Choupal Sagar, which serves as a platform for farmers to sell their produce directly to the
corporation, is one way to do this. The creation of such centres can also assist businesses in
lowering the costs of their supply chains, which may ultimately result in reduced prices for
consumers.

Application:
ITC's Choupal Sagar is a good illustration of how businesses can take advantage of the potential
of India's rural retail market. The company has so far opened 14 locations, and over the next
seven to ten years it hopes to have 700. Farmers are given greater prices for their agricultural
output through ITC e-choupal's Choupal Sagar retail products than what is offered on the open
market. This enables the business to work directly with farmers, cut expenses throughout the
supply chain, and provide consumers with goods at fair pricing.
Similar to this, DSCL's Hariyali Kisan Bazaar currently operates more than 70 stores and has
aspirations to open 200 outlets over the course of the next 12 months. The business provides a
variety of goods and services to farmers, including, among other things, seeds, fertilisers,
insecticides, and farm equipment. Through its procurement hubs, the company has also
developed a direct relationship with farmers, which enables it to provide competitive prices for
agricultural products.
Conclusion:
Due to a number of variables, including rising income levels, shifting customer preferences, and
the government's emphasis on rural development, the rural retail industry in India offers great
potential for growth and development. Retailers have exceptional chances in this market to get to
know farmers and develop long-lasting relationships with them, which enables them to provide
better prices for agricultural products and lower supply chain expenses. Companies may tap into
the potential of the rural retail sector by setting up procurement hubs like ITC's Choupal Sagar
and DSCL's Hariyali Kisan Bazaar, which would enable them to sell to customers at affordable
pricing.

Ans 3b.
Introduction:
With more than 70% of Indians living in rural areas, rural shopping is becoming increasingly
important. The rural hypermarkets are providing a wide range of services, such as purchasing
and selling farm products, banking services, restaurants, and more, in order to suit the specific
needs of the rural consumer. With its Choupal Sagar programme, ITC is one of the major players
in the rural retail market. It currently operates 14 stores and intends to expand that number to 700
over the course of the next seven to ten years. It is also anticipated that additional firms, like
DSCL's Hariyali Kisan Bazaar, Reliance Retail, and Pantaloon Retail India Limited, will launch
further initiatives to take advantage of the rapidly expanding rural retail industry. This case study
focuses on the marketing approach that ITC might employ to increase its market share in India's
rural areas.

Concepts:
The plan that businesses use to accomplish their marketing goals is known as a market strategy.
To address the needs of target clients, it entails a variety of actions including product
development, price, promotion, and distribution. The strategy must be created in a way that aids
in the accomplishment of the company's objectives and goals.

Application:
The Choupal Sagar programme of ITC can use the following marketing tactics to increase its
presence in India's rural market:
1. Penetration Strategy: By attracting more buyers for already-available products in the
current market, the penetration approach is utilised to expand market share. ITC can use
 this tactic to increase its market share in the rural retail sector. The business can improve
the variety of goods and services supplied at Choupal Sagar retail locations while also
expanding its network of shops. ITC might also offer higher-quality goods at competitive
costs to draw in more customers. ITC has the potential to become the seller of choice for
farmers who want to sell their agricultural products by providing competitive pricing and
superior quality. To raise brand awareness and draw in new clients, ITC may also engage
in aggressive marketing initiatives and promotional campaigns.
2. Diversification Strategy: To access new markets or develop new products, diversification
strategies are used. ITC can use this tactic to broaden its clientele and sources of income
in India's rural areas. The business can expand into additional product categories
including FMCG, durable goods, and other retail goods. ITC will be able to take
advantage of the rising demand for consumer goods in rural areas as a result. ITC can
collaborate with regional manufacturers and suppliers to acquire goods and develop new
revenue streams. ITC may boost its presence in the rural retail industry and gain a
competitive edge by broadening its product line.

Conclusion:
In conclusion, India's rural retail sector has enormous potential and is expanding quickly. ITC is
one of the major participants in the rural retail sector because to its Choupal Sagar effort, but it
can use a market approach to increase its footprint. By extending the number of outlets and the
variety of items, offering competitive pricing, and using aggressive marketing, the penetration
strategy can be employed to grow market share. A new product category can be entered, local
suppliers and manufacturers can be partnered with, and new revenue streams can be generated
via the diversification strategy. ITC can fortify its position in the rural retail industry and gain a
competitive edge by implementing these techniques.