Test Papers / Previous Question Papers of IGNOU MS68 Management of Marketing Communication and Advertising June 2005

MANAGEMENT PROGRAMME

Term-End Examination

June, 2005

MS-68 : MANAGEMENT OF MARKETING COMMUNICATION AND ADVERTISING

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

SECTION A

1. (a) What dimensions of consumer behaviour would you take into consideration, while developing any communication campaign ?

(b) People buy the same product for different reasons. Discuss this siatement in tbe context of buyer motives, for;

(i) Mobile phone
(ii) Car
(iii) Refrigerator

2. (a) What are the major issues in the measurement of advertising effectiveness ?

(b) How would you measure the effectiveness of the following Marketing Communication programmes:

(i) Road shows for a newly launched car with a limited period "price off"
(ii) A sales production programme for a TV
(iii) Apex fare for an airline

3. Discuss the following terms, and their significance as used in advertising media planning :

(i) Television Rating Points (TRPs)
(ii) Readership
(iii) Circulation
(iv) Reach
(v) Frequency
(vi) Opportunity to see
(vii) Penetration
(viii) Cost per thousand
(ix) Split run
(x) Coverage

4. (a) It is being said that in the current competitive situation, PR (Public Relations) and Direct Marketing tools are becoming increasingly important. Justify.

(b) What steps would you follow to develop direct marketing programme for :

(i) Credit Card
(ii) Specialized magazine on health and fitness
(iii) Educational CD

5. Write short notes on any three of the following :

(i) Reach of Mass Media
(ii) Unaided and Aided recall techniques of advertising research
(iii) Syndicated Research
(iv) Internet as an advertising media
(v) Functions of advertising agencies

SECTION B

6. Carefully read the given case on "Maggi Sauces" and answer the questions given at the end of the case :

At a time when Kissan had become generic to tomato sauce, Maggi came in with its sauces range. Maggi was the upstad newcorner who came in with a loud aggressive national burst. It did not come in with one, but with a range of sauces in order to increase market share and axpand the market by offering more usage occasions, bring consumers with different needs into the Maggi Sauces fold and weaning away users of different brands to Maggi. From a market share of 14% in 1985, Maggi Sauces now enjoys a share of about 50% of the market.

The success of Maggi can be most importantly attributed to year-round media activity, and the humorous "it's different" campaign on Maggi Hot and Sweet sauce - this campaign had such an impact that it literally promoted the entire range of Maggi Sauces.

However, today the situation is a little worrying - Kissan is actively promoting its ketchup, and multinational giant Heinz has launched Heinz Tomato Ketchup. The marketing team on Maggi Sauces, along with their advertising agency, needs to decide on what to do - should Maggi Tomato Ketchup be advertised separately, and if yes, then how ?

MARKET SIZE

The total sauces market size (tons) increase from 1985 - 1993 is as follows :

THE MARKET PLACE

There has always been a presence of good additives in the Indian household. The traditional Indian main meal has chutneys and pickles as additives while the quasimeals, where snacks or ready to eat food is consumed, use sauce as an additive. Prior to Maggi Sauces launch in 1985 the scenario of the branded and unbranded sauces market was such that the Tomato ketchup was most popular in the market with 80% market leaving the remaining 20% for others.

IMAGE : SAUCES

THE BRAND

The Maggi Sauces brand has reallY been built by creating a new segment in 1989-90 by focusing on Hot and Sweet as a new speciality sauce. The most important aspects of Hot and Sweet were

(i) Brand Image : Young - Teenager, Ever changing, humorous, unpredictable and "whacky"
(ii) Brand Positioning : Hot and Sweet was a tomato chilli sauce that was different.

Creative Objective

The main task was to evoke laughter and thereby increase recall levels. Hot and Sweet was to become a brand that was the first to be considered in the purchase decision. The campaign was an unprecedented success as the market share went upto 50% in 1992, Hot and Sweet volume was up by 64% and made a 2o% contribution to Maggi Sauces sales.

THE CONSUMER

Profile of users and non-users

Sauce is a product that cuts across all age groups and regions and therefore broadly the target group was All Adults with Rs. 2500/-+ MHI, in Class I+ towns. Users were those who have shifted from traditional Indian cooking to convenience cooking, where ready-to-use food items and additives are more readily used. The non-users were mainly those who prefer to prepare chutneys and home made food additives rather than use sauces that are bought from the market.

Who buys the Product, How and When ?

Sauces follow two purchase patterns, In regular sauce households, it is purchased at the beginning of every purchase cycle when monthly non-durable items are bought. The second group is of those households where sauce has an occasional use, it is usually an impulse puchase, from the local retailers and the main purchaser is the housewife with key influencers being children.

The users can be further subdivided between Tomato Ketchup and speciality sauces such as Hot and Sweet. Tomato Ketchup is for all members of the family (MHI : Rs. 2500+) with the larger part of the consumption coming from children. The purchaser is however the housewife. Hot and Sweet is targeted at the young adult, modern, with MHI : Rs. 2500+. The purchaser could be the housewife or the male/female 'adult'.

Users attitude to category/brand

Tomato Ketchup is generally seen as fun to eat, adds flavour to all kinds of food, and is convenient to use. Users show low involvement, low brand loyalty, are very sensitive to price, appreciate 'premium' quality of Maggi, but are unwiling to pay very large price premium. On the other hand for Hot and Sweet, the frequency of consumption is lower with high band loyalty, greater involvement, less price sensitivity and the user appreciates the unique taste and fun image of Maggi Hot and Sweet.

THE CURRENT SCENARIO

The growth of Hot and Sweet has slowed down and it can no longer offset lower growth on 400g Ketchup. On the other hand "Kissan" in the post Unilever takeover was able to increase its clout in the market-place through aggressive trade/consumer promotion inputs, new packaging - umbrella design across ranges. Wih the introduction of Heinz, there was a creative-shift from 'Natural goodness' to the thick tasty ketchup. Besides, all players introduced Hot and Sweet with 'me too' positioning, a serious threat to Maggi Tomato Ketchup.

Questions :

(a) Would you recommend that Hot and Sweet advertising should continue to support Maggi's entire range, in view of increased competition?

(b) If you have to develop new Tomato ketchup advertisements whin the Hot and Sweeti personality framework or develop a new Tomato Ketchup advertising on an entirely new platform, how would you go about it ? Kindly illustrate the step-by-step approach you would follow, in any one category of your choice.