...Reaction Rupbani Beverage Limited In increasing the market share of Rupbani, Rupbani must become adept not just in managing products, but also in managing relationship in the face of determined competition. Building profitable customer relationship and gaining competitive advantage requires delivering more value and satisfaction to target consumers than competitors do. Improving the performance and strengthening the competitive position, Rupbani needs to find out all it van about its competitor. It must constantly compare its marketing strategies, products, prices, channels and promotion with those of close competitors. Rupbani can identify its competitors from the industry point of view. Rupbani must understand the competitive patterns in its industry if its hope to be an effective player in the industry. He can also identify competitor from a market point of view. Here they define competitor as companies that are trying to satisfy the same customer group. Benchmarking can also become a [powerful tool, for increasing a company’s competitiveness. Rupbani must work hard in achieving the lowest production and distribution cost. Low cost let it price lower than its competitor and win a large market share. To remain number one, first they must find ways to expand total demand. Second, they must protect their current market share through good defensive and effective actions. Third, they must try to expand market share further, even if market size remains constant. Rupbani must...
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...Strategy Strategic Management & Business Policy Home Take Exam Instruction: Attempt All Questions (Each 10 Points) Case I: Rupbani Beverage Limited Rupbani Beverage Limited entered the Indian wine industry in 1975 by acquiring the Mastana Wine Company of Shimla and two other smaller wine companies at Kalka for Rs. 50 lakh. Despite hostility expressed by other wine makers and predictions that Rupbani would very soon fail as other outsiders such as Parminder Wine Company had, the entry succeeded. Rupbani Limited performed the unheard of feat of establishing a volume of 30 lakh cases within two years and taking the market share away from premium brands such as the National Wine Company of Bombay, Pearl Drink Limited of Pune and Syndicate Cola Limited of Madras. Rupbani advertised heavily and incurred Rs. 10 lakh in one year and standardised the taste of its wines with considerable success. It also invested Rs. 48 lakh in a large, new winery at Ahmedabad. A Rupbani Executive said, "By 1995, consumption of wine in India will be a liter per capita, compared with half a liter today." The industry reacted to Rupbani's presence by doubling and tripling advertising expenditure. ABC and Company began a costly campaign to market premium and varied wines while reducing marketing emphasis on its cheap wines such as Nahan Drinks and the Gola Beverage. ABC maintained its 25 percent market share but had to resort to some heavy price discounting to do so. In 1982 Pearl Drinks formed...
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...SECTION A (4X5) Ques. 1. Write Short Notes on a) Market Development MARKET DEVELOPMENT a process for developing sales - new business and new markets This process is effective for developing all types of business, and delivers business growth via: * new products or services to existing customers, * existing products or services to new customers, or * new products or services to new customers. Market development process: 1. Establish market development aims and targets. 2. Identify target market(s), sectors and niches. 3. Assess your existing sales organisation and develop it as necessary. 4. Source/utilise a suitable prospect database - ensure data is clean and up to date, and strategic decision-makers are identified. 5. Develop and agree your strategic proposition(s) - with reference to USP's, UPB's, competitors, positioning, product mix, margins, etc. 6. Design your communication(s) and method(s) to generate enquiries. 7. Design your response and sales processes and establish or provide required capabilities. 8. Design and provide your required monitoring, measurement and reporting systems. 9. Implement your sales development activity and reinforce it through coaching, training, meetings, executive endorsement, etc. 10. Follow-up the activity: coach as required, review, monitor, seek customer and prospect feedback (successful and unsuccessful) and report on performance. 11. Make...
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