Marketing

QUESTION ONE (1) Unible India: From Fastest growing Niche Cookie Brand to a Challenger? In 2007. Lighthouse Funds acquired a 25% stake in Unibicu i Australia for Rs 200 million in 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Umbic operated solely in the premium, high-margin cookies segment in India with a share of around 86. It had a market presence primanly in south India and was exporting to the Middle East and Hong Kong It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cash strapped Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had donated the market adually lost out to cream biscuits and cookies. The reasons for the shift included isang disposable incomes leading to an increase in consumption of premium brcuits, a large number of manufacturing facilities of premium biscuits, growing health awareness innovation bringing in attractive new product mang affordability of cookies, and increase in eye-catching packaging Over the years, Unibic regularly introduced fresh and unique les ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate bune, milk, savory, and health. The company considered its target market to be between the age of 14 and 10. It comedits efforts at innovation and produced new products which would appeal to its target market In 2015, Umibic had used celebrity endorsement by signing the Indian acto Shruti Haan, for over a year It stated that it wanted someone who was devant and would give the dead a boost to get to the numbers it wanted in the South Unibic didn't advertise much in print media TV remained the company's one focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets. Unibic employed a unique strategy in each market, thereby playing to its strengths in cach market while keeping in mind the market conditions and consumption patterns. From 2019 onward. Unibic started feeling the heat of the come slowdown in India. The Indian cconcimie slowdown of 2019 led to a serious and continuing decline in the country's real estate automobile and construction sectors and in overall consumption demand. The second quarter July-September of the financial ycar (April 2019-March 2020) winessed a drastic fall in the grous domestic product (GDP) growth rate to The main reasons attributed to the fall in the GDP growth rate wete-contraction in manufacturing activity, weakened investments, and lower consumption demand As of 2020. Unibic had the largest wie cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day with five production line. While it med 98% of its production capability to produce its own brand, the rest was used to manufacture for the label brands - six in India and 10 across the world. It had anual revenues of Rs. Shilli Italseeported its products to more than 21 countries including across Australia, North America, the UK and Europe, Asia, the Middle East, and New Zealand, It derived 455 of its earnings from the south of India Questions Explain three factors that had a negative impact on the financial performance of Unibic in its early years. 16 marks) b) Which environmental force did Unibic use in segmenting its market? What is this force about? (6 marks c) What does the following statement suggest to you about Unibic: "It continued its efforts at innovation and produced new products which would appeal to its target market (3 marks) DC: ACD02-Food ) Which marketing strategy did Unibic use in 2015 and explain any two (2) reasons why firms adopt that strategy? (9 marks) e) What main media did Unibic use to implement its marketing strategy? State one advantage of this media, (6 marks)