TASTY FOOD INTERNATIONAL LIMITED

Tasty Food International Limited was incorporated in the year 1970 in United States of
America (USA) by Mr. John. The company main product line is confectionaries like Biscuits
and Chocolates. Since from its inception the company dominated USA market with major market
share. The prime Market Segment for the biscuits are children, and, for chocolates are children
and young age group who are in between 15- 30 years from high income families. The Chocolate
brand “Bite N Joy” and Biscuit brand “Pick N Taste” are most favored leading Brands in
America. The brands are positioned as Premium Brands and the price is also higher than other
competitor brands / products.

In the year 2000 son of the promoter Mr. John become company CEO as successor to his father.
Mr. Jill is very ambitious and want expand its product markets globally.

Mr. Jill identified Europe is most favorable for expansion, so he entered into Europe market
with same Segmentation and Targeting strategy and he applied same Marketing Mix of
America in Europe market. The brand names of chocolate and biscuits are also extended to
Europe market as most of the people know English language. The consumer behavior and
marketing and economic environment is almost same for confectionary products in USA as well
as Europe, so he got successes in Europe also.

In recent years the markets of USA and Europe becoming saturated gradually and
confectionary products are entered into maturity stage of life cycle. So Mr. Jill decided to enter
into huge potential market of Africa, so that he can sustain in business, as Africa population is
much more than USA and Europe.

Mr. Jill appointed a management team to formulate Marketing – Mix to African market. The
management team want come out with innovative products as African market is entirely different
from USA and Europe markets in terms of purchasing power, consumer behavior and even
marketing and economic environment.

Assume you have been appointed as management consultant to lead the team.
1. Explain why new Marketing – Mix is required for African market and support your
answer with suitable examples?
2. What are your criteria of market Segmentation for African market for chocolates?
3. How to Segment the market for biscuits in African market?
4. Draw your market Targeting strategy for Biscuits and Chocolate brands?

Developed By: Prof. Venkateshwar Rao- Dilla University Page 1

 NOKIA
In last two decades Nokia a company from Finland, is strong brand name and synonym for
mobile. In 2006, Nokia, the world’s largest producer of mobile phones, was the market leader in
Asia and Africa like developing countries with 78.8% of the market share. Since its entry into
mobile marketing 1995, it focused on manufacturing of Basic Mobile Handsets based on GSM
technology. Nokia built a strong brand image with focused marketing and distribution
network. It started focusing on the low-cost mobile phone segment for low-income markets in
Asia and Africa, but, faced stiff competition from Sony Ericsson, Samsung ,and Motorola and
other china unbranded mobile companies who also started offering low-cost handsets. Nokia’s
under developed infrastructural facilities and low coverage were the biggest challenges for it to
reach rural customers.

On the other hand in Smart Phone Category in Last four years, the Samsung surpassed
Nokia for the top position in the global handset market in the first quarter of 2012. The Korean
company shipped 93.5 million handsets in the first quarter for a 25 percent share of the market,
even as global handset shipments grew a little over 3 percent annually. In contrast, Nokia's
handset shipments were down 24 percent year-on-year to 82.7 million units, giving it a 22.5
percent share.

According to market research, only 14% of Nokia’s sales were smart phones, in
contrast to 34% for Samsung. This marks the first time since 1998 that Nokia has not been
number one in the cell phone market. Looking at product mix of both companies over the past
few years, Samsung growth was almost entirely in the Smartphone segment, whereas Nokia
went in the opposite direction with basic mobile phones.

Surprisingly in the African markets also with the advancement in economic

development with rising income levels, the African consumers started preferring smart mobile
phones with low-cost but Nokia smart phones are too costly for them. The china companies
identified this opportunities and also low priced brands like HUWAI entered into African smart
phone segments along with premium brands like Samsung, Sony Ericson and apple.

A look at global smart phone shipment data tells a similar story. At the end of 2010, Nokia
was the number one global smart phone manufacturer, with 34.9% market share. Samsung was
in 4th place behind RIM and Apple, with only 7.5% market share).

Developed By: Prof. Venkateshwar Rao- Dilla University Page 2

 Just one year later, the numbers were different. Nokia’s smart phone market share dropped to
15.7%, while Samsung’s climbed to 19.1% market share. In other words, from 2010 to 2014,
Samsung enjoyed a 400% increase in smart phone shipments, while Nokia suffered a 33%
decrease in shipments.

A. Conduct SWOT (Strength-Weakness-Opportunity-Threats) analysis for NOKIA.

B. Identify the influence of marketing factors in basic mobile and smart phone category for
both NOKIA and SAMSUNG?
C. What kind of marketing programme you suggest to NOKIA to be into competition in
basic mobiles?
D. Design and suggest new Marketing-Mix (4P’s) to re-launch NOKIA in the developing
markets for smart phone segments?

Developed By: Prof. Venkateshwar Rao- Dilla University Page 3

 WENDY'S INTERNATIONAL

The founder of Wendy's International was Dave Thomas - a man who made his first million
dollars as a Kentucky Fried Chicken franchisee owner ( KFC restaurants).Eventually, however,
Dave decided to stop selling fried chicken so he good make and sell the type of food he really
loved - hamburgers. Unfortunately, everyone told him - particularly the bankers and financial
people he spoke with - that opening another burger restaurant was a bad idea.

After accumulating years in the fast food industry, he had noticed that the big burger chains sold
batch-cooked hamburgers made from frozen beef that sat under heat lamps. Dave decided that
to offer something different - quality and freshness. Dave opened up his first Wendy's restaurant
and sold made-to-order hamburgers, chili, French fries, (real) milkshakes, and soft drinks. Since
day one, his idea has been a success. In fact, his first restaurant became profitable after just six
weeks. Later, as the business grew, Dave added menu items that corresponded to exactly what
customers told him they wanted. This formula of providing what customers wanted in a
hamburger, combined with offering better quality than the competitors proved to be a real
winner.

Today there is lot of competition as many entrepreneurs started restaurant like him and started
offering same kind of products. As business expanded in to other countries it’s become very
difficult for him to manage all the business operations from head quarter. The profit margins
gradually reducing year- by- year due to increase in price of raw-materials and tax payments.Mr.
Dave lowered the prices of his products to compete with other restaurants, even he spent lot of
amount on advertising and promotion, but even this has not helped him.

1. Conduct SWOT analysis for Mr. Dave

2. What factors have caused a worry to Mr. Dave
3. What solution you suggest to maintain market share to Mr. Dave.
4. Suggest marketing strategy and marketing mix to Mr.Dave.

Developed By: Prof. Venkateshwar Rao- Dilla University Page 4

 MICRO ELECTRONICS

Mr. Abraham, CEO of MICRO ELECTRONICS , has established the firm for manufacture and
marketing of an innovative electronic gadgets/products like mobiles, I-pods and tablets etc. with
technical-know how arrangements with western companies. The firm earned a reputation of its
products within two years, as its first firm in Ethiopia its enjoyed larger market share. Mr.
Abraham followed premium price policy to ensure quality and technically advanced features.
Today the firm has 80 billion turnover in sub-Saharan Africa.

Three years back Mr. Barhanu who is graduated MBA from Dilla University established a small
electronic firm with innovative and local technology and started offering same kind of products
with better quality and less price. Initially Abraham didn’t recognized what is going in the
market as he is very busy with looking major functions like marketing, finance, HR and
operations by him-self. In these three years he lost 45% market share to Mr.Barahnu. Moreover
the government decided to allow Foreign Multi-National Companies to manufacture and market
the electronics product in Ethiopia by next two years.

Mr. Abraham lowered the prices of his products to compete with Mr. Barhanu, but even this has
not helped him. Mr .Abraham is now approached you for advise to stabilize his sales and
maintain Status-quo in next two years.

1. Conduct SWOT analysis for Mr. Abraham.)

2. What factors have caused a worry to Mr. Abraham?

3. What strategies you suggest to maintain market share to Mr. Abraham.

Developed By: Prof. Venkateshwar Rao- Dilla University Page 5

 CASE ANALYSIS-SWOT APPROCH

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,
opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and
threats are external factors. Strength is a positive internal factor. A weakness is a negative
internal factor. An opportunity is a positive external factor. A threat is a negative external factor.

We should aim to turn weaknesses into strengths, and threats into opportunities. Then
finally, SWOT will give managers options to match internal strengths with external
opportunities. The outcome should be an increase in ‘value’ for customers – which hopefully
will improve our competitive advantage.

Simple Rules of SWOT Analysis.

1. Be realistic about the strengths and weaknesses of organization.
2. It should distinguish between where organization is today, and where it could be in the
future.
3. It should always be specific. Avoid grey areas.
4. Always apply the tool in relation to competition i.e. better than or worse than
competition.
5. Keep your audit short and simple. Avoid complexity and over analysis
6. It is subjective.

Once key issues have been identified with your SWOT analysis, they feed into marketing
objectives. The tool can be used in conjunction with other tools for audit and analysis, such as
Porter’s Five-Force analysis and Ansoff matrix . So SWOT is a very popular tool with marketing
students because it is quick and easy to learn. During the SWOT exercise, list factors in the
relevant boxes. It’s that simple.

Developed By: Prof. Venkateshwar Rao- Dilla University Page 6

 Strengths Opportunities
• patents
• strong brand names • an unfulfilled customer need
• good reputation among customers • arrival of new technologies
• cost advantages from proprietary • loosening of regulations
know-how
• exclusive access to high grade • removal of international trade
natural resources barriers.
• favorable access to distribution
networks
Threats
Weaknesses
• lack of patent protection • shifts in consumer tastes away from
• a weak brand name the firm's products
• poor reputation among • emergence of substitute products
customers
• high cost structure • new regulations
• lack of access to the best natural • increased trade barriers
resources
• lack of access to key distribution
channels

After identifying the strength, weakeness/ opportunities, threats we need to develop

strategies that take into account the SWOT profile, a matrix of these factors has to be
constructed. The SWOT matrix is shown below:

ENVIRONMENTAL INTERNAL

FACTORS Strengths Weaknesses

EXTERNAL

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

S-O strategies: pursue opportunities that are a good fit to the company's strengths.

W-O strategies: overcome weaknesses to pursue opportunities.

S-T strategies: identify ways that the firm can use its strengths to reduce its vulnerability to
external threats.

W-T strategies: establish a defensive plan to prevent the firm's weaknesses from making it
highly susceptible to external threats.

Developed By: Prof. Venkateshwar Rao- Dilla University Page 7