Monday, 12 December 2016

SERVICES MARKETING CASE STUDIES



CASE I
With the entry of private insurance players like Tata-AIG, ICICI-Prudential and Max-New York Life, LIC felt a need to revamp its business. Based on recommendations of the leading consulting company Booz, Allen & Hamilton, LIC restructured various aspects of its business. The caselet discusses LIC's measures to train and develop competent personnel. It focuses on the customer service initiatives of LIC by using technology and improving service delivery. Finally, the caselet talks about the change in LIC's branding and advertising strategy.

Issues:
a. Need for training in Insurance.
b. Branding of an insurance company.
c. Use of technology in insurance services marketing.

Introduction:

Till the year 2000, Life Insurance Corporation (LIC) held a monopoly in the life insurance market by virtue of being India’s only life insurance company in India. With the opening of the insurance sector to private players, LIC’s hold on the market was threatened. Institutional equity (Kotak Mahindra Capital Company) and mutual funds (Kotak Mahindra Asset Management Company), has been converted (it obtained the banking license in February 2003) into Kotak Mahindra Bank (KMB). It launched its first branch at Nariman Point in Mumbai in March 2003. KMB has tried to differentiate its services in all aspects, starting from the design of the bank logo to the design of its products and services... Questions for Discussion:
a). The changing perception about a company among customers is a challenging task for any service provider. To what extent has LIC succeeded on that front?
b). What kind of branding strategy should LIC adopt, given its increasing product mix and the aggressive brand building measures of private insurers?

  
CASE II
Keeping pace with economic growth of this country, the housing loan has been becoming a most lucrative and large marketable product of banking and non-banking financial institutions.
ICICI, HDFC, SBI, Andhra Bank are the leaders of house loans in Andhra region. It is observed that of late there is a mismatch between demand for and supply of house loans in this region with increasing demand for and less of supply of this financial service.
You are required to:
(a) List out common causes of this mismatch between demand and supply in India.
(b) Explain the strategies to match them.
  
CASE III
The boardroom was filled with the voice of Marketing manager, Ashutosh Kant. He was addressing the meeting of senior manager of Escape, “The last three months were spent by our market research team in finding out the reasons and patterns of sales at stores. Let me emphasize that retail sale is showing growth all over the country and in the process, competition is intensifying. We can no longer afford to sit and relax; instead we need to put ourselves fully to retain our market leadership”. Three facts revealed by the survey were particularly disturbing.
1) People found Escape service staff bordering an aggressiveness and not really helpful as they were never left to browse.
2) Children got bored and hence parents often left the store within minutes after finishing essential shopping. They never browsed or spent leisure time at Escape stores which could otherwise help promote sales.
3) With many choices available in the market consumers stopped treating Escape stores as unique and exclusive anymore.

Mr. Rehman, an entrepreneur, had set up a garment shop in one of Delhi’s busy market areas about 10 years ago. He realized that to attract customers, he must do something new. With this in mind, he chalked out a massive plan to open a chain of stores called Escape. Some major features of his store were:
1) Complete dress range for kids, parents and teenagers.
2) Full accessories for women and men in footwear, purses, jewellery and cosmetics.
3) A play centre where kids could spend time when the parents shopped.

CASE IV

MAC India a 100% subsidiary of USA based parent company, wants to launch health drink for sports people and iced tea. Preliminary research indicated that Indian public is becoming increasingly health conscious and cola market has become saturated.
India’s beverage market size is 720 million liters, which includes soft drinks, tea, coffee, and mineral water but does not include health drinks. In tetra pack the only success is Parle Agro’s FROOTI, MAC INDIA intends processing 250 tons fruits in the first year to make health drink, which will be expanded up to 2000 tones by 5th year.
After the initial success of health drink is ensured, it wants to launch iced tea.

Questions:

(1) State and explain the problem area of the case?
(2) Advice on the marketing mix and market segmentation strategy?

CASE V
Fast Express courier ltd. (FECL) is an innovative overnight delivery company that helped change the way companies do business. It was the first company to offer an overnight delivery system, but the company markets more than just a delivery service. What FECL really sells is on-time reliability. The company markets risk reduction and provide the confidence that people shipping packages will be “absolutely, positively, certain their packages will be there by 10.30 in the morning”. In fact, FECL sells even more than reliable delivery. It designs tracking and inventory management systems for many large companies. In other words, the customers buy more than just delivery service they buy a solution to their distribution problems. For example, a warehouse designed and operated by FECL is part of the distribution centre for a very large computer firm. In other organizations, customers can place an order for inventory as late as midnight, and the marketer, because of FECL’s help, can guarantee delivery by the next morning. FECL has positioned itself as a company with a service that solves its customer’s problems.
Questions:
i)                    What are the elements of service quality for a delivery service like FECL?
ii)                  In what way does technology influence FECL’s service quality?


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