WWW.SMUSOLVEDASSIGNMENTS.COM GET BEST QUALITY SOLVED ASSIGNMENTS VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at solvemyassignments@gmail.com YOU MAY CALL US ON - 7506193173 WHATSAPP NUMBER- 9967480770 INTERNAL ASSIGNMENT APPLICABLE FOR SEPTEMBER 2019 EXAMINATION Strategic Financial Management 1. Rajshree Limited’s equity shares trade in the market at Rs. 40 per share. Dividend paid in the current year is Rs.8 per share. You expect the dividend to grow at a constant rate of 4% year on year. Is the stock underpriced or overpriced? State the appropriate reason. Assume 16% cost of equity. (10 Marks) 2. A shoe manufacturer is considering buying a machine which will enhance its production efficiency. The machine would cost Rs 2,40,000 and has a useful life of 5 years. A salvage value of Rs 40,000 is realizable at the end of 5 years. The machine will bring in cost savings of Rs 70,000 every year The tax rate is 30%. Assume 20% cost of capital. Compute the NPV of the proposal. (10 Marks) 3. Allied Industries has raised capital by way of Equity, Preference Shares and Debt at a cost of 18%, 12% and 10% respectively. Capital (in Rs million) Book Value Market Value Equity 500 1000 Preference 250 250 Debt 250 250 Calculate the weighted average cost of capital based on a. Market Values (5 Marks) b. Book Values. (5 Marks) Brand Management 1. Even for the most dedicated of ice cream lovers this multicultural marketing blunder may prove a little hard to swallow. Meerut-based MVF Products launched ice-cream cones by the name of “Hitler”. The brand’s cartons carried a picture of a stern-looking Adolf Hitler dressed in a brown blazer. In response to its marketing, critics tweeted extensively with crude remarks such as “Height of tastelessness; Indian icecream named after Hitler. Would the Germans name a sausage after Godse?" The brand marketers however justified their stance by stating that the brand name was inspired by an uncle in the family known for his short-temper; and nick-named Hitler. Needless to say, the brand’s name and identity suffered from severe criticism for being inappropriate and insensitive. Not just the brand name, but even while choosing other elements of the Brand, the marketer must keep in mind certain criteria to avoid such multi-cultural blunders. Discuss the six-point criteria for choosing the Brand elements. (10 Marks 2. Nestle is planning to come up with a range of coffee-based products such as face wash, face exfoliating scrub, face mask, face cream, body mist, lip balm etc. under its Nestle brand. What is the branding strategy that Nestle should adopt for this new product range? Suggest how the company can create brand associations for its new product range leveraging secondary associations from its existing brand. (10 Marks) 3. Chocberry has undergone a major transformation over time. It has evolved from being a confectionery business into an international business with significant interests in confectionery and entertainment for kids worldwide. Growth through acquisition had enabled the group to build up a large portfolio of wellknown brands. However, slowly it started becoming clear that not all of its products were contributing
WWW.SMUSOLVEDASSIGNMENTS.COM equally well to its overall profitability. This case study looks at how Chocberry adopted a business philosophy of selling chocolate products to children either directly or through their parents. Revitalising brands Chocberry's famous brands include: Chocberry's Milky Way, Nutty Buddy and SilkyChoc. Good brands are valuable assets, but still need support especially when children are the main consumers and parents the main buyers. There is also a time lag challenge. Children, who stop being consumers of their parents' chocolate purchases when aged 12 or 13, have to be encouraged back to the product as buyers of it when they themselves become parents, perhaps 15 years later. Chocberry decided that its chocolate products aimed at children were most in need of a new approach. But how best to achieve it? Advertising dilemmas Since different chocolate-based products appeal to different age groups, Chocberry needs to offer a wide product range. Each product needs promotion, which implies an advertising budget for each product line, which is very expensive. One approach is to promote the firm as a whole, that is, raise awareness of Chocberry's, in the hope that this in itself will boost sales across Chocberry's product range. However, a catchall approach can be rather hit or miss and may produce a poor return. Another way around this is to promote chocolate consumption in general. This approach would require co-operation between competitive producers and implies some loss of control for Chocberry's. In line with its adding-value approach, the challenge to Chocberry was to promote its child-orientated products in a cost-effective manner. From within Chocberry came an interesting, attractive proposal based on some solid propositions: For children, consumption is linked to having fun. Any consumption that children regard as fun will also appeal to their parents, who do the spending. Other companies manage to associate consumption with children having fun. For example, Disney offers Disneyland, where, in the course of having a good time, children meet loveable characters whom they link with the purchases that parents make on their behalf, such as cinema tickets, videos, cuddly toys. On somewhat similar lines, the company Chocberry, also has 'a place where chocolate is made'. This place is an asset that can be further developed into a Chocolate World. Chances are, that it shall prove to be a huge attraction to thousands of visitors each year. Out of this line of thinking came a new Chocberry creation - Chocberry LAND – a chocolate world, chocolate factory of its kind. Chocberry already has separate chocolate lines aimed principally at children: Chocberry Shots, Stars, Perky. What was needed was a new 'umbrella' that gave them some togetherness whilst preserving their separate identities. The concept of Chocberry LAND had to be suitable for promotion through the various media forms and flexible to survive the addition and subtraction of brands. Chocberry LAND will capitalise on children's love of likeable characters placed in a world of their own. A character shall be attached to each brand. The character's persona will reflect the brand. For instance, Buttons will be 'a bit dizzy and will giggle a lot', Wildlife will be 'an eccentric old buffer' and Fudge will be 'a bit of a loony'. In Chocberry LAND, each character will contribute in an endearing way to the making of 'their' product. A child consumer and his chocolate-related adventures will offer the route by which the visitors shall enter and enjoy Chocberry LAND. Children will feel comfortable with all this, because they are already familiar with the brands. The experience of seeing their favourite chocolates being made – a tempting world of chocolates – will be a one of its kind. The challenge before the marketers will be to build the brand equity for Chocberry LAND. a. Who should be the key target consumer (s) for Chocberry LAND and what should be the positioning to reach out to them? (5 Marks) b. What are the various communication tools which can help in building the brand equity of Chocberry LAND? (5 Marks)
WWW.SMUSOLVEDASSIGNMENTS.COM Integrated Marketing Communications 1. You have just opened your own Restaurant. You have planned an inaugural rate for customers to visit and taste the food. Describe the P’s of marketing mix. Describe the Promotion plan on How would you market your brand to maximize your sale? (10 Marks) 2. You are the brand manager of a Toddler’s toys Brand. Your company has tied up with a kid’s movie to attract the toddler’s. How will you leverage this association to build equity for your brand? (10 Marks) 3. Case Study Increase Market Share for Online Pharmacy Source: PTI feed India Today The overall Market size of online Pharmacies is at Rs. 800 Cr. It is estimated to grow at 20% as more and more people move into buying online medicines. Metlife offers the medicines at a 20% lower rate. While it has been growing, the overall share of all the top players put together is only 2%. Metlife aims to increase its market share thereby increasing the volume of medicines bought online. a. In a growing market with other serious players, how would you approach IMC to increase the market share? (5 Marks) b. Metlife has created an audio visual ad for creating awareness about authentic medicines delivered at the doorstep. Explain the 9 elements of communication for the ad. (5 Marks) B2B Marketing 1. Fortis Hospitals wants to increase its sales by focusing the Business markets where Organizations would buy preventive health check-up packages for their employees. They have developed various packages to attract business markets. Propose a suitable pricing strategy that Fortis should use for its organizational customers. (10 Marks) 2. Excellent Roller, company are the famous rubber roller manufacturers in India. They have got into a technical collaboration to produce Teflon rollers which are used in coating and printing machines. Rubber rollers which is used generally are prone to damages compared to Teflon rollers. ERPL is planning to launch product using advertisements. Do you agree for an advertisement campaign for an industrial product? If so why? What are the ways in which ERPL can advertise? What are alternate methods? (10 Marks) 3. Read the following Case & solve the questions given: Mr. Sunil Mathur, Director, Raj Doors Pvt Ltd, was not sure what kind of marketing strategies, segment and target market he should use in order to achieve the company goals on sales and profitability. The sales and profits were not growing as per expectations of Mr. Mathur. Sunil Mathur joined the family business in 2006 after completing graduation in Electronics engineering and MBA from a reputed institution in India. The company manufactures and markets plastic doors (GTEX brand) for bedrooms, bathrooms, office rooms, balcony etc. These non-wood doors can be used for residential houses, institutions like schools, office, hospitals as well as commercial shops, malls etc. The market for plastic doors was growing at the rate of 50% annum. Raj Door was having a market share of 14% in the year 2008. Kintex and Aptak were the leading players with market share approximately 28% and 20% respectively. Balance market was dominated by smaller players as well the players in the unorganized sector. The market was overall dominated by wooden doors. The market was highly fragmented with no player commanding more than 4% of the market. Unorganized sector was the dominant player in the wooden door market. Mr. Sunil was determined to make the company as market leader of the overall door market (both wooden and plastic) in the next ten years. The company had segmented its market into the following segments(a) government organizations like CPWD, Ministry of Defence, Railways etc.;(b) Residential house built by builders ;( c) commercial organizations and institutions ;( d) individual house owners built by individuals ;( e) fabricators. ‘We have targeted all the above market segments for plastic doors, excepting those who want wooden doors’ said
WWW.SMUSOLVEDASSIGNMENTS.COM Sunil Mathur. He further added that their sales personnel regularly contacted contractors who get business from government organizations, where lowest price and good after-sales-service are the key buying factors. However, when sales personnel call on builders for residential and commercial complexes for getting orders, Superior product quality and services are the most important factors that they have to keep in mind. For house owners and fabricators indirect channel of dealers are used. They mostly look for low prices and delivery service. The company developed three sub-brands under GTEX brand. These are Solidex, Fibrex and Lightex. Solidex brand was suitable for government firms, institutions, individual houses with medium quality and medium to low prices. Fibrex brand with high quality was suitable for builders and a few individual house owners. Lightex brand offered lower quality and low prices for replacement market and a few individual house owners. a. Evaluate how the buying behavior is likely to be different in the Commercial offices from individual households. (5 Marks) b. Develop a marketing strategy with focus on: Strategic orientation (whether you would like to be leader, challenger or follower)? Discuss its implications. (5 Marks)
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