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Concordia University
MANA 298

UNIVERSITY OF MAURITIUS FACULTY OF LAW AND MANAGEMENT SECOND SEMESTER EXAMINATIONS MAY 2012 PROGRAMME BSC (HONS) USINESSSTUDIES BSC(HONS) MANAGEMENT BSC (HONS) UMAN R ESOURCEM ANAGEMENT BSC (HONS) MANAGEMENT (MINOR: INANCE) BSC (HONS) MANAGEMENT MINOR :BUSINESSNFORMATICS ) BA(H ONS) AW AND M ANAGEMENT DIPLOMA INMANAGEMENT (SPECIALIZATIO:HRM) MODULE NAME M ARKETINGFUNDAMENTALS Wednesday DATE MODULE CODE MGT 1203(1) 02 May 2012 13:30 – 15:30 TIME DURATION 2 Hours Hours NO. OF NO. OF QUESTIONS QUESTIONS SET 5 TO BE ATTEMPTED 3 INSTRUCTIONS TO CANDIDATES This paper consists of two sections. Section A and Section B Section A : Case Study ALL Questions are compulsory. Section B : Answer ANY TWO (2) questions. Answer 3 questions in all. M ARKETIFUNDAMENTAL- MGT 1203 (1) SECTION A : COMPULSORY CASE STUDY Read the Case Study and answer the question that follows India set for FMCG sales boom NEW DELHI: Consumer spending in the Indian FMCG sector is set to more than triple by 2020, offering major opportunities for brand owners and retailers. According to a study from the Boston Consulting Group and the Confederation of Indian Industry, expenditure levels should reach $3.6tr in 2020, compared with $977bn in 2010. The core trends fuelling this process include growing affluence, rising aspirations among shoppers and the adoption of increasingly sophisticated media habits. More specifically, 70% of Indians will be of working age in 2025, helping drive economic expansion and consumer spending, the report suggested. "There is such a huge opportunity in Indian retail and FMCG that there is no need for players to fight for their share of the pie. Instead our focus should be to grow this pie which is small today, and to unlock a closed market," Nitin Paranjpe, CEO of Hindustan Unilever, said. Currently, food takes 31% of expenditure, transport logs 18%, housing accrues 14%, education and leisure holds 7%, apparel attracts 6%, health posts 5% and durables and household services receive 4%. Overall, category spending in India will rise by 14% per year in the forecast period, beating the worldwide total of 5.5%, and the projected 9% lift due to be recorded by emerging markets. At the end of this timeframe, India will deliver 5.8% of global consumption, more the doubling the contemporary proportion of 2.7%. There are seven shopper segments in India at present, including "professional affluents", or 2% of households; "traditional affluents", or 4% of residences; and "urban aspirers", or 8% of homes. "Rural aspirers" make up 6% of the target audience on this measure, as do the "large town next billion". A further 24% of households were "small town and rural next billion", also a promising cohort. Page 1 of 5 MARKETINFUNDAMENTAL- MGT 1203 (1) The biggest group, however, was the "strugglers", or 50% of households, which require a nuanced selection of products such as single-serve sachets. Looking ahead, the "professional affluent" group is expected to supply 26% of expenditure in 2020, the largest share, and improving from 16% in 2010. "The Indian consumer pyramid is shaping into a diamond, but more importantly income is only one variable that is driving this consumption," said Manu Anand, CEO of PepsiCo India. Source : CII/Economic Times/Rediff; additional content by Warc staff, 17 February 2012 All Questions Compulsory Question 1 (a) Pertaining to the FMCG sales boom in India, differentiate between macro- environment and micro-environment? [4 marks] (b) Identify the opportunities for brand owners and retailers in India operating in the FMCG sector. Explain how these brand owners and retailers can re-organise themselves internally to benefit from these opportunities. [9 marks] (c) Why should companies in the Indian FMCG sector take stock of the information published by the Boston Consulting Group and the Confederation of Indian Industry? [3 marks] (d) Outline the steps involved in the marketing research process. Choose a FMCG product to briefly describe one primary data collection method that you would use to determine the needs of “Professional affluents” of the shopper segment in India. [9 marks] (e) Discuss the marketing mix approach for Sensodyne – a premium brand toothpaste. [15 marks] [Total : 40 marks] Page 2 of 5 M ARKETIFUNDAMENTAL- MGT 1203 (1) SECTION B Answer ANY TWO (2) Questions Question 2 (a) “Le Meritt is the one of the largest and most luxurious residential development in Quatre Bornes, offering 116 condominiums; and pent
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