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Kinetic

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ASSIGNMENT CONSUMER BEHAVIOUR

Submitted to: Submitted by:
Mr. Harsh Verma Pankaj Gupta Varun Sehgal Swati Mehta

Why Kinetic-Honda Company failed?

1.) Kinetic seemed to miss the pulse of the market, which was fast moving towards motorcycles. Kinetic had no motorcycles to offer - mainly due to the Honda joint venture stipulations. 2.) Miscalculated the purchasing power of the Indian Middle class due to this they couldn’t grow. 3.) Financial Position of the company - operating margin was the lowest in the industry because of the high import content of raw materials. 4.) Issues between Kinetic and Honda over - introduction of new models, advertising expenditure, marketing strategies, etc. As a result, the company suffered in terms of growth and profitability. 5.) Kinetic as an Umbrella brand not being as promoted - Consumers associated the name Kinetic with scooters and 'Luna' with mopeds, but did not see them as belonging to the same business house. 6.) Less Advertising Expenditure on newspaper and television of introducing a new product. 7.) The cost of making the Kinetic scooter was higher than the cost of manufacturing a motorcycle, the selling price of the latter was Rs 10,000 more.
What can be done to increase the sales 1.) Promotion of Kinetic brand on both Television and Newspaper ad campaign. 2.) Public awareness camp and scooter service campaign about the new product launch. 3.) Needs to launch a new aggressive and consumer focused marketing strategy like a package of Post sales and post warranty benefits for the consumers. 4.) Kinetic can decentralized the distribution network and thus reduced inventory costs.
COKE – CHALLENGING AND ‘CHALLENGE’

What went right:
1.) Coke chose to move forward in response to real market pressure,

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