Case analysis

1. CASE ANALYSIS
Examples of Solved Case
Dr. Gopal Thapa
Tribhuvan University
thapazee@gmail.com
CASE ONE: HPL
HPL is one of the largest food products company in India, with a very well-known and
respectable brand name of its products, consisting of milk, butter, ghee, cheese, milk-powder,
ice-cream, chocolates tea-coffee whitener and curd. Some products like milk and curd are sold
locally, but some other products such as butter, milk-powder and chocolates are not only
marketed nationally all over India, but internationally to USA, Singapore and Gulf countries.
The company has 50 sales depots with over 5000 distributors, who are supplying the company’s
products to over 1.2 million retail outlets in India. The selection of the right kind of distributor is
important, because the distributors have to invest at least Rs. 200,000 in infrastructure like cold
storage and to carryout key activities like selling to retailers, inventory carrying, warehousing
and transportation. The main criteria used for selection of the distributor selection are: financial
strength, market reputation, availability of required infrastructure, and the previous experience in
handling FMCG. It is the responsibility of the distributor to appoint as many retailers as possible,
so that the company products are available at the arm’s length to the household consumers. The
distributors and the retailers are not exclusive and therefore, can deal with the competing
products. The trade discounts given to distributors and retailers are 5 and 8 percent respectively.
There is also 3 percent volume discount and one percent incentive is given to distributors at the
end of the year on achieving the sales quotas. There is no question of cash discount, as no credit
is given to any distributor. However, the dispatches are made on receipt of local cheques or
demand drafts, to the extent of the value of bank guarantee given by the distributor of the

2. company. Conflicts between distributors and retailers are solved through mediation by the
company’s salesforce.
The company is planning to launch their products in Nepal also from 2017. To distribute the
products in the major cities of Nepal, they are going to appoint some distributors very soon. They
have already decided to implement same policies and strategies which are successful in India.
a) Critically evaluate the distribution strategy used by the HPL.
Ans.: a) Distribution includes distribution channel and physical distribution which is
related with fulfilling gap between point of production to point of consumption. It helps to
provide right product to right customer at right time with reasonable price. In marketing, there
are mainly three types of distribution strategies. They are intensive distribution, selective
distribution and exclusive distribution strategies. In the given case, the company has used 50
sales depots with over 5000 distributors, who are supplying the company’s products to over 1.2
million retail outlets in India. If any company uses maximum number of middlemen to cover
larger geographical areas to satisfy innumerable customers, it is called intensive distribution
strategies which is appropriate for convenience products. Dairy products are also consumer
products and it falls under the convenience product categories. Thus, on the basis of nature of
product, use of maximum middlemen and larger geographical, it is clear that HPL has used
intensive distribution which is appropriate strategy. Selective and exclusive strategy are not
suitable for dairy products like milk, butter, ghee etc. in national as well as international market.
b) Based on above case, are they using product line or product mix strategies? Give
your opinion.
Ans.: Ans.: If any producer produces more than one product items which are closely related is
called product line strategy. Similarly, if any producer produces more than one product lines or
varieties of product items which are unrelated is called product mix strategies. In the given case,
products offered by the company are milk, butter, ghee, cheese, milk-powder, ice-cream,
chocolates tea-coffee whitener and curd. All products offered by them are closely related
products. We can say all products are closely related because of their nature, target market,
production process, distribution channel, price range, customer needs etc. Thus, product
strategies used by them are product line strategy not product mix strategy.

3. c) Comment on the criteria used by the company to select distributors.
Ans.: In my opinion, it seems clear that the criteria used by the company for the selection of
distributor is appropriate because, in the given case, the main criteria used for selection of the
distributor are: financial strength, market reputation, availability of required infrastructure, and
the previous experience in handling FMCG. Without financial strength, no marketer can invest
for infrastructure like storage, transportation etc. For successful marketing market reputation is
equally important. Without the market reputation of distribution none can achieve success in
competitive environment. Similarly, without infrastructure no marketer can create and deliver
value to its customers. Experience distributor with sufficient infrastructure and financial strength
and good reputation can work effectively and efficiently in supply chain to deliver value for
customer. In this way, criteria used by the company for distributor selection is appropriate to a
large extent.
d) Do you think policies and strategies which are successful in India will also be
successful in Nepal? Give your arguments.
Ans.: For successful marketing, all marketing policies and strategies must be consistent with
changing marketing environment. To some extent, socio-cultural and economic environment of
Nepal and India are similar. But to a large extent, there are dissimilarities in the marketing
environment between India and Nepal. So, in my view point, we cannot blindly adopt successful
marketing policies and strategies which is successful in India because of the unique
characteristics of Nepalese market. Thus, it is better to modify their successful policies and
strategies from Nepalese perspective. We must learn from the Indian context and should design
and implement marketing policies and strategies as per the Nepalese marketing environment and
Nepalese consumer behavior. If there is change in environment there must be change in
marketing policies and strategies. In conclusion, I think, marketing policies and strategies which
are successful in India will not be successful in Nepal.
CASE TWO: ROYAL CANIN
Royal Canin is an independent company established in 1966 by French veterinarian,
Henri Lagarde that holds the leading position in Europe for dog and cat food. The product range
is enormous, offering food for every type and age of dog or cat.

4. Initially, the brand sold only to breeders. Then it switched to hypermarkets. But the
brand was displayed in the middle of inexpensive competitors, and the package was not properly
presented.
Early in the 1990s, Royal Canin switched to selling through specialty outlays: garden
stores with pet departments, as well as, pet stores. These outlets account for the bulk of the
brand’s sales today. These specialists, as opposed to food stores, are more welcoming to
salespeople. They will take time to talk with Royal Canin “Counselors,” generally student
veterinarians, who explain the line and offer advice about animal health. These stores send their
floor salespeople to Royal Canin seminars. And they stock the full line, displayed as suggested
by the supplier. These stores reach a buyer willing to pay a substantial premium over the
ordinary pet food available in food stores. Why? Lagarde explains it thus: “People feel guilty if
they don’t give the best to their animals.”
The result for Royal Canin is high market share; high margins; fast growth, and a high
valuation on the Paris stock exchange.
i. Discuss the distribution strategies practiced by Royal Canin.
Ans: In the beginning, the distribution strategy used by the Royal Canin was selective
distribution strategy. In selective distribution strategy producer uses a few but selected
middlemen to serve the customer. This strategy is suitable specially for shopping product. In
above case, it is clear that products are distributed through selected middlemen like breeders and
hypermarkets. But in the early 1990s Royal Canin has changed its distribution strategy from
selective distribution strategy to exclusive distribution strategy. In exclusive distribution
strategy, producers use one or few middlemen to serve customers. This strategy is appropriate for
specialty product. In above case also, products are distributed through specialty outlays like
garden stores with pet departments, as well as pet stores.
ii. “People feel guilty if they don’t give the best to their animals.” Comment.
Ans: In the given case, Royal Canin has tried to position their product as a premium brand by
selling selected specialty outlets. If any customers purchase product from normal store that
product should be easily available in the market and price should also be competitive. But if
same product is distributed as specialty product, customers are ready to pay high price and gives

5. sufficient time and effort. In the given case also, marketer is successful to position the product as
specialty product by distributing through specialty store and customers are ready to pay high
price for prestigious product. Thus, “People feel guilty if they don’t give best to their animals” is
highly relevant for premium product and prestigious customer from consumer perspective.
CASE THREE: NEPAL BAKERY
Nepal Bakery is one of the popular Bakery shop situated in Thapathali, Kathmandu. It was
established in 2005 by Sambhu Karki, a retired government staff. It offers varieties of bakery
products along with tea and coffee. Its target market includes students, pedestrians, housewives
and staffs of different institutions situated at Thapathali area. No price discrimination had been
adopted by Sambhu since its establishment. Growth and Profitability of the bakery shop was
satisfactory. But Inventory management was a great problem for Nepal Bakery. Sambhu had
been facing the problem of over and under stocking time and again in bakery product. To
manage the problem, last year, he decided to consult with MBA student of Kathmandu
University. A group of MBA students of Kathmandu University with marketing specialization
were invited to visit his shop. After the visit, students recommended Sambhu to change the
pricing strategy. They suggested switching pricing policy from uniform pricing policy to flexible
pricing policy. They recommended Sambhu to offer 50% discount after 7 pm for remaining
stock. They also advised the shop owner to improve the physical infrastructure. Sambhu also
interacted with students about promotional activities, packaging, branding and competition. He
convinced with students and immediately changed his marketing program accordingly.
Now , Sambhu’s profit and number of customers has increased amazingly. Inventory problem
has solved and customer satisfaction and retention has also increased.
1. What is the main problem faced by the Nepal Bakery?
Ans: The main problem faced by the Nepal Bakery is inventory management. Bakery products
are highly perishable products. Life of bakery product is very short. We cannot stock bakery
products for longer time. So, inventory management for perishable products is challenging
because it is very difficult to forecast demand for perishable products. It is more challenging in
case of fixed pricing policy. As Bakery shop has adopted uniform pricing policy, definitely, such

6. problem arises. Thus, in the given case also the shopkeeper has faced the over and under stoking
problem.
2. Were the recommendations provided by the students correct? Give your opinions.
Ans: Yes, recommendations provided by the students were correct to a large extent because
Bakery shop is related with hybrid offer where physical goods as well as services both are
equally important. And they also recommended adopting flexible pricing policy which was also
relevant. That 50% discount can solve the over stoking problem. But above recommendations
cannot solve under stocking problem. Again, improvement of physical infrastructure is not
enough. They must think about people mix which is related with internal marketing and
interactive marketing. Again, service delivery process is equally important and relevant
component of service marketing which we cannot ignore while designing service marketing mix.
CASE FOUR: BATA SHOE
The Bata Shoe Organization (BSO) was founded by Tomas Bata on 24 August 1894 in Czech
Republic (former Czechoslovakia). Over the years, Bata has established itself globally and
operates more than 4600 retail stores in over 50 countries including Nepal. Bata is estimated to
serve one million customers each day and employs more than 40000 people. It has sold more
than 15 billion pairs of shoes – more than the number of people who have walked the earth
during this time. If all the shoes sold by Bata are laid end to end, they would extend to 12 million
kilometers - more than 30 times the distance between the earth and moon. The Bata pricing in
global market is not a sales poly and has nothing to do with psychological pricing as is widely
believe. The number 9 is used because the founder, Tomas Bata, was a ninth generation
shoemaker. The company has given much more emphasis on continuous product quality
improvement . According to the Marketing Director of BSO, “Quality is the central of all
marketing and thus Bata shoes deserves premium price with high profit margin in global market
in comparison to other competing brands.”
a) Comment on the distribution strategy used by the BSO.

7. Ans: Distribution strategy used by the Bata is intensive distribution. In intensive distribution
strategy, marketers use maximum numbers of retailer to make the product easily accessible and
available in the target. In the given case it is mentioned that Bata has established itself globally
and operates more than 4600 retail stores in over 50 countries including Nepal. Operation of
more than 4600 retail stores in over 50 countries means in an average there are at least 92 retail
stores in each country which clearly indicates intensive distribution strategy.
b) On the basis of above case, explain the marketing philosophy used by the
organization.
Ans: On the basis of given case, marketing philosophy used by the organization is product
concept. This concept holds that customers are ready pay reasonable price for quality product
and main emphasis is given to quality improvement. In the case central of all marketing is
quality. And result of the quality is premium price with high profit margin in the global market
indicates that the organization’s marketing activities are guided by the product concept of
marketing
CASE FIVE: PROCTER & GAMBLE
Procter and Gamble (P&G) invested four years and $10 million developing a water-purifying
product suitable for Third World consumers. The product, called Pur, comes in small packets for
household use. It can transform 2.5 gallons of contaminated water into drinkable water in 20
minutes. Many, including P&G’s top management, consider it revolutionary. However, the
company has been unable to make the product commercially successful. Why? Consumers have
to carefully follow directions regarding the proper amount of water to use and the 20-minute
waiting period in order for powder to work. Second, it is priced at 10 cents a packet. A villager
in the Sri Lanka tsunami region without clean water said he would not pay more than the
equivalent of one-half of one cent per packet. P&G has donated millions of packets to relief
agencies in disaster areas and they also used celebrities to promote the product but did not last
for longer period in the market.
a. On the basis of above case, explain the features of Pur .( 5)

8. Ans: Pur is a new product offered by the P&G. It is water purifying product, according to P&G,
suitable for Third World consumers. It is consumer product as comes in small packet for
household use. Pur can transform 2.5 gallons of contaminated water into drinkable water in 20
minutes. Price of the product is ten cents a packet. P&G has invested $10 million to develop the
product which has considered as revolutionary by the company top management and many
others
b. Why Pur did not last for longer period in the market? (5)
Ans: Although the product Pur was a innovative product and it is considered as revolutionary by
many, including P&G top management, the product did not last for longer period in the market.
There are several reasons for product failures. First reason that the product did not last for
longer period is its high cost. Although it is suitable for Third World customer, price is beyond
their capacity. Another reason for product failure is that time taken to process the water is 20
minutes. It is the reason that Third World consumers cannot wait for 20 minutes to drink water.
Again, P&G has ignored the situational factors. New product cannot launch successfully in the
situation like tsunami. Regardless of how well a product meets a need, marketers must also
consider the circumstances of the buyer. So, Pur did not last for longer period in the market
CASE SIX: KATHMANDU COLLEGE
Five years ago, Kathmandu college, was established in Tinkune, Kathmandu by a group of
Kathmandu University MBA graduates to retain the students of elite class family in the country
by offering high quality education by renowned professors. At present more than five hundred
students are studying in various programs such BBS, BBA, and BHM. The college is affiliated
to Tribhuvan University. There are 50 renowned faculty members in the college which consists
of 20 full time and 30 part time faculty members. There are also 15 administrative staffs to run
various programs. The college is running in morning and day shifts.
From the very beginning, the college has been practicing odd pricing while determining the fee
structure for their programs where as their competitors has been practicing even pricing. For
example, annual fee structure of Kathmandu college is: BBS Rs.99,000, BBA Rs.119,000, and

9. BHM Rs.129,000. There is no provision of discount for anyone. They charge same fee structure
for all students. But their nearest competitor has been offering various discount offers based on
student’s score in 10+2.
Similarly, they have been promoting their college aggressively from the very beginning. For
advertising, they are using radio, TV and daily newspaper. They always participate in education
fair organized by Kathmandu Post. Prospectus and leaflet have also been used for college
promotion. Famous film star, Rajesh Hamal is used as a brand ambassador of the college to
create brand awareness.
The college management has tried their best to provide quality education. It has already gained
popularity for quality education. The result is excellent in comparison to other competitive
colleges.
Last month, college management had conducted a students’ satisfaction survey by distributing
closed ended questionnaires. In the survey, it was found that students are not satisfied with
college management. Students dissatisfaction is related with poor infrastructure, lack of sports
facilities and no welcome and farewell programs. It was found that students were highly satisfied
with faculty members but not satisfied with administrative staffs.
As you are the student of marketing the college management is going consult with you to solve
the problem identified during survey.
i. Are they customer oriented marketer? Give your opinion.
Ans: In my opinion, they are not customer oriented marketers. Customer orientation is one of the
fundamental principles of new marketing concept. To be a customer oriented marketer, they
must create highly satisfy customers by offering high value. Customer satisfaction must be their
motto to become a customer oriented marketer. In the above case, it has mentioned that as per
the students’ satisfaction survey, students are not satisfied to the college management. It means
marketing program designed by the management is not customer friendly. In the above case, it
has also been mentioned that they have been relied upon aggressive promotion like advertising
and event management. By implementing selling concept of marketing, no marketer can be a
customer oriented marketer. In nutshell, it is concluded that they are not customer oriented
marketer.

10. ii. Comment on the brand name Kathmandu college.
Ans: In Nepalese context, the word ‘Kathmandu’ is multi-used brand. There are so many
marketers who use Kathmandu as a brand. Marketer use brand name mainly for identification
and differentiation. But multi-used brand can not give specific brand identity to identify and
differentiate the brand from brands. For example, Kathmandu University, Kathmandu Hospital,
Kathmandu steel, Bank of Kathmandu, Kathmandu Engineering college, Kathmandu college of
Management etc. Selected brand must be strong, favorable and unique for specific brand
positioning. Thus, brand name Kathmandu college is not appropriate marketing perspective. It
only creates confusion to customers.
iii. Is odd pricing appropriate for the college? Give your argument.
Ans: odd pricing is a type of psychological pricing. It is suitable for price sensitive customers as
it gives psychologically cheaper feeling for economy minded customers. Based on the above
case, it is mentioned that the college management has tried their best to provide quality education
and it has already gained popularity for quality education. So, to reflect quality in fee structure of
the Kathmandu college it is not good to set odd pricing. Odd pricing is appropriate if marketer
want to establish their product as a cheaper product. So, for quality positioning it is better to set
even pricing such as Rs. 100,000, Rs. 120,000 and Rs. 130,000 instead of Rs. 99,000, Rs.
119,000 and Rs. 129,000.
iv. What is the main issue of the case? Explain.
Ans: Based on the given case, the main issue of the case is students’ dissatisfaction because of
the inappropriate marketing mix. Their target market is elite class people, and pricing and
promotion strategies they adopted are not appropriate as per the characteristics of target market.
Mere quality education and excellent result is not enough to satisfy their target market. They
must design their marketing program as per the need of target market. Implementation of
traditional marketing concept by inappropriate marketing mix has led to student’s dissatisfaction.
Thus, they must be customer oriented marketer and must formulate appropriate marketing
program as per the need and characteristics of target market.
CASE SEVEN: HOLIDAY AT HOME

11. ‘Holiday at home’: Managing a media campaign
Because of the strong Australian dollar and the growing number of low-cost airlines, more and
more Australians were flying to Asia for their holidays. To encourage Australians to ‘holiday at
home’, a large advertising budget was given to the Department of Tourism. The marketing
manager, wanting get the campaign running quickly, split the department into teams—one team
for television, another for radio, a third for print media, a fourth for online advertisements and a
final group for outdoor. At the end of two weeks, the groups were asked to present their
proposals. Each team had come up with different ideas but none fitted within the allocated
budget. The manager looked over the plans and had no idea what to do but they were so different
that it was impossible to fairly compare one against another—and integrating the campaigns into
a whole looked impossible. The Marketing Manager had no choice but to set the proposals aside
and start again, looking at the campaign as a whole. Trying to rush things and failure to take an
integrated approach had ended up delaying the progress instead of making it easier.
a. On the basis of above case, analyze the objective of the media campaign? (5)
Ans: The main objective of the media campaign should be to encourage the Australians to spend
their holidays in their own country. As mentioned in the above case, more and more Australians
were flying to Asia for their holidays because of the strong Australian dollar and growing
number of low-cost airlines. Strong Australian dollar indicates strong economic condition or
purchasing power of the Australians and low-cost airlines definitely motivates them to visit Asia
which indicates challenges to Department of tourism. Thus, to discourage them to visit outside
Australia and to enjoy the increasing purchasing power of Australians, because of the strong
Australian dollar, it was inevitable to retain them within the country. So, the objective of the
media campaign should be promoting domestic tourism i.e. encouraging Australians to spend
their holidays in their own country.
b. Was the step taken by marketing manager correct? Give your opinion. (5)
Ans: The step taken by marketing manager was not correct. For quick campaign, marketing
manager has divided the department into various teams on the basis of media. But the fact is,
each medium has its own merits and demerits. If each team works separately, idea generated for
one medium cannot work for other media. There is also possibility of conflicts among the teams

12. for resources and implementation of their own ideas. So, marketing manager must focus on
integrated marketing communication for better coordination and effective utilization of
resources. They must follow steps of developing effective communication i.e. identifying target
audience, determining communication objectives, designing message, allocating budget and only
selection of media. Mere selection of media and creation of ideas by different team
independently is not appropriate for effective promotion.