The document discusses different levels of product including the core, basic, expected, augmented, and potential product. It provides examples for each level for a midday meal project by Akshaypatra for school children. It also discusses Porter's five forces analysis and how it can be applied to analyze the vocational training industry and a specific organization. Finally, it covers topics like segmentation, targeting, positioning, value chain analysis, the concepts of customer value and satisfaction.
1. Submitted to: Ms. KaronShaivaSubmitted by: Sunny Pawar–A010PT MBA(SE) -IIISchool of Business ManagementNMIMS (2014-15) 14/08/2014
1
2. Q.1. Levels of Product
•Core Product–What is the core benefit your product offers?Thecoreproduct is not the tangible, physical product. You can’t touch it. That’s because the core product is thebenefitof the product that makes it valuable to you.
•Basic/Tangible Product –Thetangibleproduct is the actual, physical product. You can get some use out of it.
•Expected Product –Theexpected product is the product the customers expect it to be
•Augmented Product –Theaugmentedproduct is the non-physical part of the product. This meets the customer’s desires beyond his expectations. It usually consists of lots of added value, for which you may pay a premium.
•Potential Product –Thepotential product is the futuristic aspect of the product i.e. how the product can be ideally with further add-ons and technological or other improvements . The possible evolutions that can be made to make the product a distinguished offer
14/08/2014
2
3. In a midday meal (Annakshetra) project of Akshaypatrafor kids in municipal school in rural areas of south India these can be:
•Core Product :Hunger
•Basic:Edible and Sufficient Khichdi
•Expected: Tasty
•Augmented: Nutritious
•Potential: Khichdi+ Buttermilk
14/08/2014
3
4. Product levels in social sector Core (Hunger)
Basic (edible and sufficient khichdi)
Expected (Tasty)
Augmented (Nutritious) Potential (khichdi+ buttermilk) 14/08/2014
4
5. Q.2. a) Porter's Five Forces analysis Industry Focus
•While a Porter's Five Forces analysis focuses specifically on the industry in which a company operates and a SWOT analysis focuses primarily on the company itself, both analyses actually focus closely on the industry.
•In a SWOT analysis, the strengths and weaknesses of a company are analyzed relative to the entire industry, while the threats and opportunities originate primarily within the industry.
•The industry focus of both of these tools helps managers concentrate on the most relevant environment when considering strategic planning initiatives.
•Porter's Five Force model can be used in a scenario where you want have more micro level Planning.
•It gives you a detailed insight vertically and horizontally in a value system. Be it be a Production, Marketing or Finance.
•SWOT is more of assessing a Scenario at a Macro Level which can give a bird's eye view of a situation or scenario.
14/08/2014
5
6. Intensity of rivalry within the industry KEF, YuvaP, Pratham
Threats from Substitute product- (MCGM, Unorganized Job Sector) Bargaining power of Buyers (Customers)- Trained Youth & Corporate Companies, Placement Agencies
Threats of new entrants- School for Dropout, New NGO’S, 2% CSR, Direct Placement by Corporate
Bargaining power of Suppliers- CBOS’s, NGO, Youth And Parents, Corporate
Porter's Five Forces analysis -KotakEducation Foundation
14/08/2014
6
7. Q.2. a) SWOT Analysis
•Opposition is an inevitable part of change and one that can significantly impact our community development initiatives
•A SWOT analysis guides us to identify the positives and negatives inside our organization (S-W) and outside of it, in the external environment (O-T).
•Developing a full awareness of our situation can help with both strategic planning and decision-making.
•The SWOT method (which is sometimes called TOWS) was originally developed for business and industry, but it is equally useful in the work of community health and development, education, etc.
•SWOT is more of assessing a Scenario at a Macro Level which can give a bird's eye view of a situation or scenario.
14/08/2014
7
8. STRENGHTS:
•Self funded
•NGO networking: Snehasagar, Minim Charitable Foundation, MuktiSadanFoundation
•Networking with MCGM & other govt. agencies such as MAVIM, ICDS, VirarVasaiMahanagarpalika, etc.
•USP:Rs. 300/-for rigorous 3 month training and 100% job placement to dropouts from B.P.L. Category.
•Good rapport with community & primary stakeholders through CBO’s such as TriratnaPreranaMandal
•MBA students internship for 2 months every from ITM college Khargharwork as volunteer Weakness:
•Lack of Training and Development for staff
•No impact assessment
•No update of curriculum
•More emphasis is on quantity and not the quality of the training provided
•Top down approach in decision making
•Poor human resource management leading to high Attrition rate.
14/08/2014
8
9. Opportunity:
•Increasing no of dropout in Mumbai-Rich demographic resource.
•Foreign direct investment in retail industry will provide further job opportunities to fresher & trainees
•Strategic CSR tie-ups with MNCs and Hotel Industry. Threat:
•Competition for new entrants such as RustomjeeConstruction ltd.
•PRATHAM-Residential training
•MCGMthinking to introduce new project for dropout youths
•Schoolfor dropout youth getting direct jobs from Corporate
•Innovation in Vocational training
•Policy change e.g. NSDC withdrawing its support.
14/08/2014
9
10. Internal vsExternal
Forces and facts beyond one’s control include:
•Future trends -in your field (Is research finding new treatments?) or the culture (Do current movies highlight your cause?)
•The economy -local, national, or international
•Funding sources -foundations, donors, legislatures
•Demographics -changes in the age, race, gender, culture of those you serve or in your area
•The physical environment (Is your building in a growing part of town? Is the bus company cutting routes?)
•Legislation (Do new legal requirements/ policies make your job harder...or easier?)
•Local, national or international eventsInternal factors include one’s resources and experiences such as :
•Human resources -staff, volunteers, board members, target population
•Physical resources -your location, building, equipment (Does your building have a prime location? Does it need renovations?)
•Financial resources -grants, funding agencies, other sources of income
•Activities and processes -programs you run, systems you employ
•Past Experiences & Expertise -building blocks for learning and success, your reputation in the community.
14/08/2014
10
13. Levels of Market Segmentation
Amarketsegmentisaclassificationofpotentialcustomersbyoneormorecharacteristics,inordertoidentifygroupsofcustomers,whichhavesimilarneedsanddemandsimilarproductsand/orservicesconcerningtherecognizedqualitiesoftheseproducts.
14/08/201413
14. •In case ofmass marketing,the seller does mass production, mass distribution and mass promotion for the product. The single product then caters to all the buyers in the population.
•Mass marketing thus creates the largest potential market leading to lower costs and thereby lowering prices and higher margins, but it also creates difficulty of reach and makes it real difficult as well as expensive to reach all audience.
•Because of this reason, sellers are turning towards micro-marketingwhich happens at one of the following four levels:
1.Segment marketing–targeting a group of customers having a similar set of needs and wants.
2.Niche (Tiny) marketing–targeting a narrowly defined customer group who seek a distinctive set of benefits.
3.Local marketing–targeting a local group of customers
4.Individual marketing–This is ultimate level of segmentation where segmentation boils down to segments of one.
http://geekyfry.com/management/marketing/segmentation-levels- variables/
Segmentation Levels
14/08/2014
14
17. TYPE OF FIRM
SEGMENTATION BASE
POSSIBLE MARKET SEGMENTS
1. Banking
Demographic segmentation
Young couples, young families, older families, pre-retirement, retired
2. Mobile phone carriers
Benefit segmentation
Highly social, work-oriented, safety contact, status symbol
3. Frozen foodmanufacturers
A broad mix is used here:
•Demographic segmentation
•Psychographic segmentation
•Behavioral segmentation
Single households, diet- conscious, family dining, parties, budget-conscious, variety seekers
4. Toothpaste
Benefit segmentation
Teeth whitening, sensitive teeth, fresh breath, cavity protection, tartar control
5. Restaurant
Behavioral segmentation
Regulars, special occasion, business lunch, quick spot
14/08/201417
19. Concentrated (Niche/Tiny) marketing
Merit base Educational scholarship for M.Phil/Ph.Dprograms in USA
Segment
Remote Rural Villages Of South India
Target Group
PostGraduate Girls (With Distinction) From Low Income Groups
Positioning
Coveted scholarshipby an India corporate to deserving Indian candidates
14/08/201419
20. Differentiated (segmented) Marketing
Microfinance Products
Segment
Rural Markets and Tier II cities
Target Group
Women from Low Income Groups, SHG’s, JLG’s, etc.
Positioning
Customized loans for your unique needs with tailor-made payment options to match the income patters of the community
14/08/2014
20
21. Undifferentiated (Mass)marketing- One common standardized product for all
KotakEducation Foundation’s Vocational training program
Segment
Slums & Chawlsof Mumbai
Target Group
Dropouts/ unemployed youth (18-25 years)from Low income group.
Positioning
Skill Building + Placements.Starting salary of Rs. 6,500/-per month after successful completion of the 3 month training
14/08/201421
22. Q.4. a) Value Chain (Vertical Linkage) Analysis
“ Gaining and sustaining a competitive advantage requires that a firm understand the entire value delivery system, not just the portion of the value chain in which it participates. Suppliers and customers and suppliers’ suppliers and customers’ customers have profit margins that are important to identify in understanding a firm’s cost/differentiation positioning, because the end- use customers ultimately pay for all the profit margins along the entire value chain.”
-Shank and Govindarajan(1993)
14/08/2014
22
24. The existing supply chain of AMUL
•The distribution network
Amulproducts are available in over 500,000 retail outlets across India through its network of 3,500 distributors.
There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.
•Gujarat Cooperative Milk Marketing Federation (GCMMF) transacts on an advance demand draft basis from its wholesale dealers instead of the chequesystem adopted by other FMCG companies.
•This practice is consistent with GCMMF’s philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping.
•Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just in time inventory strategy improves dealer’s ROI. All the branches of GCMMF are engaged in route scheduling and have dedicated vehicle operations.
14/08/201424
25. The existing supply chain of AMUL
•LargestColdChain:AMULhasthelargestcoldchainnetworkinIndia(18000refrigerators)ascomparedtoanyothercompany.Thechemicalcomponentsofmilkarewater,SNFandsolids.Itisaperishableproductsoithastobeconsumedwithin24hours.InordertoavoidwastageAMULconvertsthemilkintoSNF(Solidsnotfats)andmilksolidsbyevaporatingthewater,whichcomprisesof60-70%ofthemilkcontents.
•Customers:Indiaisstillintheevolutionarystagewithtremendouspotentialforhighvalueproductssuchasvariantsofmilk.Thedistributionnetworkisquitereasonablewithaccesstometrosaswellasruralareas.
•Suppliers:Amajorityofsuppliersaresmallormarginalfarmerswhoareilliterate,poorandwithliquidityproblems.Farmersnowhavebetteraccesstoinformationrelatingtomarkets,technologyandbestpracticesinthedairyindustrythroughnetenabledkiosksinthevillagesandalsoimprovedbargainingpowerIndeed,innootheragriculturecommoditydoesthefarmercontroltheentirevaluechain,fromprocurementtoprocessingtomarketing.Inthedairysector,theGujaratifarmerisalinkandvalueadder.
14/08/2014
25
26. The existing supply chain of AMUL
•Third party logistics service: There are ample deficiencies in the current infrastructure and the outbound logistics is taken care by GCMMF coordinating with distributors. It also connects with unions for product mix, product allocations and in developing production plans. The key lies in matching supply and demand as the demand outstrips supply by a big margin.
•Interlocking control: The objective of interlocking mechanism is to ensure that the interest of the farmer is always kept at the top of the agenda through representatives who constitute the Boards of different entities that compromise the supply chain. Professional managers and farmers work together as a team to strengthen the cooperative.
•Coordination agency: Objective of such an agency is to ensure the milk produced by the farmer is sold in the market either as milk or as value added product. With the creation of GCMMF (Amul), competition among co-operatives was eliminated while they could band together and take on the private sector.
GCMMFhasensuredremunerativereturnstothefarmerswhileprovidingconsumerswithqualityproductsunderthebrandnameAmul.
14/08/2014
26
28. FORM UTILITY: Enhancing the marketability of a product by changing its physical characteristics. For example, boxed detergent can be produced in liquid form, which may be more advantageous for certain consumer requirements. TIME UTILITY: Enhancing a product's marketability by making it available at a convenient time. For example, a daily newspaper home delivered so that the customer has it available immediately when he/she awakes for the day. PLACE UTILITY: Where the product or service is made available. For example, if it is a retail establishment, people should be provided with easy access. Mail order companies make it easy for customers to shop whenever they want and then have their purchases delivered to them.
BRAND UTILITY:“The term brand utility describes a method of linking a brand to a cause or a mission. Brand utility therefore consists of showing and demonstrating the use of a brand. This ‘use’ is often social. The message brand utility communicates can replace or complement the classic persuasive advertising discourse on a product’s performance. The line of brand utility is often developed through a signature catchphrase or slogan. Some examples of brand utility practices: EDF -people connecting people / Nike - maximizing human potential through its signature "Just do It".”
http://www.spotter.com/en/content/what-earth-%E2%80%98brand-utility%E2%80%99
14/08/2014
28
29. •FORM UTILITY: Customized sanitary napkins manufactured by an SHG after understanding the specific requirement of each & every women.
•PLACE UTILITY: Sanitary napkins are made easily available and accessible at a place where women meet for usual discussions & meetings.
•TIME UTILITY: Sanitary napkins are home delivered so that women have it available immediately when they need it.
•Quality/ BRAND UTILITY: Several women still preferring superior quality sanitary napkins provided by well known brands such as Whisper, Carefree, etc. as against sanitary napkins provided by NGOs through SHG’s i.e. trusting the brand name of private companies. Example: Sanitary napkins 14/08/2014
29
30.
31. 14/08/2014
31
Q.4. b) Value vs. Satisfaction
Itsmeansthecustomers’evaluation(perceivedvalue)ofthedifferencebetweenallthebenefitsandallthecostsoftheproduct.Forexample:IconsiderMicroMaxphoneasValueForMoneytomeascomparedtotheexpensiveSamsung
CUSTOMER VALUE
32. Customer Satisfaction (Absolute)
•Its the match between customer expectations of the product and the product’s actual performance.
•“It is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations”
•Its the desired marketing tool : Loyalty, retention, acceptance of new offers, word of mouth advertising and all these result to repeat buys
www.berlysitumorang.blogspot.com
14/08/2014
32
34. Q.5. C.E. vs. S.E.
•Theprimarydifferencebetweenthebusinessandthesocialentrepreneursisthepurposeforsettinguptheventure.Whilethebusinessentrepreneurs'effortsfocusonbuildingabusinessandearningprofits,thesocialentrepreneurs'purposeistocreatesocialchange.
•A business entrepreneur may create changes in the society, but that is not the primary purpose of starting the venture. Similarly, a social entrepreneur may generate profits, but for him/her that is not the primary reason for starting the venture.
•Anotherkeydifferencebetweenthesocialandthebusinessentrepreneurisinthemeaningofwealthcreation.Forthebusinessentrepreneur,'wealth'issameasprofits.Forthesocialentrepreneur,however,wealthalsoencompassescreation/sustenanceofthesocialandenvironmentalcapital. Therefore,tobeviable,asocialentrepreneurshipventuremustshowapositiveSocialand/orEnvironmentalROI.
14/08/2014
34
35. C.E. vs. S.E.
PerceptionsofValue
•Forthebusinessentrepreneur,valueliesintheprofittheentrepreneurandinvestorsexpecttoreapastheproductestablishesitselfinamarketthatcanaffordtopurchaseit.Thebusinessentrepreneurisaccountabletoshareholdersandotherinvestorsforgeneratingtheseprofits.Tothesocialentrepreneur,there'salsovalueinprofits,asprofitsarenecessarytosupportthecause.Thatsaid,valueforthesocialentrepreneurliesinthesocialbenefittoacommunityortransformationofacommunitythatlackstheresourcestofulfillitsownneeds.
MeasureofProfitability
•Theventuresofbusinessentrepreneursarealwaysdesignedtoturnprofitsthatbenefitstakeholders,suchasshareholdersorprivateinvestors.Socialentrepreneursalsomayengageinfor-profitactivities.However,theyoftenstructuretheirorganizationsasnonprofits,ortheydonatetheirprofitstothecausestheysupport.NIKAWater,forexample,isafor-profitcompanythatsellsbottledwater.Accordingto"Entrepreneur,"100percentofthecompany'sprofitssupportclean-waterprojectsinUganda,Kenya,SriLankaandNicaragua.
14/08/2014
35
