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Marketing Strategy for penetrating a new market

A case study on marketing management with a solution. A submission by Aakash Kumawat, IIM Kashipur.

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IKEA India - Marketing done right

IKEA opened its first store in India with a bang. Over 40000 people visited the Hyderabad store on Day-1 resulting in a traffic block of over 3 km. The store refused to disclose its sales number but it is estimated to be over ₹ 1 crore on Day-1. IKEA planned meticulously for years to enter into the Indian market. The brand can now safely say it has left a long-lasting impression on the Indian consumers Time and again IKEA has proved companies don’t have to spend millions on advertising and won people’s hearts with their extremely cost effective and creative advertisements. Some of the cost-effective strategies used are as follows:


NETFLIX AND INDIA The US streaming giant Netflix, a ubiquitous in US, a household entity made entry into Indian market in 2016 seeking to expand its user base into developing markets. The company claimed to acquire 100M subscribers from India. This was the time when smartphone market was booming in India and predatory pricing strategy of Jio had brought down internet data cost to abjectly low level. In 2016, 35 million Indians had smartphones, a gigantic number by any estimation and it seemed as if a giant door was opening itself for Netflix. This was the time when urbanization was rampant and more and more Indians were asking for break from lifeless, trite TV soap contents. Streaming services like Hotstar had already made its mark by providing a cocktail of contents which included movies, cricket. TV shows and other regional content. Although Hotstar had acquired a good market share, it provided content which were highly localized and also lacked essence of a true streaming service. India was waiting for something like Netflix- a service meant for streaming, only streaming. But alas! India proved to be a tough market for Netflix. Why Netflix didn’t fly as it had hoped when launched in 2016? SWOT analysis of Netflix in India Strength -          Strong brand equity -          High quality streaming content -          Big pockets -          Recent focus on creating original Indian contents Weakness -          High subscription price -          Small segmentation and targeting -          Predominantly English content -          Lack of original Indian content Opportunity -          Huge smartphone user base -          Cheap data price -          Rapid urbanization and change in life style -          Decline in the quality of Indian TV content Threats -          Competition from Hotstar, Amazon and other streaming services -          No entry barrier in the market, advent of new and cheap streaming services Netflix managed to bring in only 1% of the 23.78 million members it added worldwide in 2017. SWOT analysis provides us an insight which can be analysed to explain why Netflix is struggling in India. One of the glaring reasons is extremely premium pricing of Netflix in a country whose per capita income is 1/9 of the USA. On an average, Netflix charges 300% more from its consumers compared to industry average. That’s a lot of money Netflix is asking for half of the content it offers in US. This pricing strategy obviously excludes a large chunk of population who could have been its potential customers. Other than that Netflix doesn’t yet offer specialized content for Indian population like it does in other countries. India still is a majorly Hindi speaking nation and it’d be tough for Netflix to catapult its market share unless it pulls in these segments of society. Competition for services like Hotstar is also a big challenge which is winning over the market by providing news, sports and other contents. Netflix needs to up its game to thrive in India.

Consumer Behaviour

The presentation attached is the solution of the consumer behaviour exercise from the Marketing Management 1 course.

Kimura case study

Solution for kimura case

Marketing Strategy for new restaurant

Case Study – Uncle’s Kitchen is a famous multi-cuisine restaurant in the main market of Kashipur. The restaurant earlier used to sell traditional Indian Food and had a pretty conventional dining arrangement. On a suggestion from Marketing Club, it diversified to include more food options and changed the design of its outlet to be more neat and trendy. The changes seemed to work well for Uncle’s Kitchen as they saw a sharp rise in their sales – primarily from families and youngsters. Having seen sustained success and profits for 3 consecutive years, Uncle’s Kitchen is now interested in opening their second branch in a new city altogether. They have already hired a manager who would be relocating to this new location to handle the day-to-day business. They have approached you to help them with this decision. TASK The task includes the following things:- 1. Suggest a New City which would be appropriate for the restaurant to diversify into 2. Give reasons why this city would be an ideal choice to expand their business further 3. Create a Marketing Strategy to successfully penetrate the market