Q.1: Below given is a case study. Read it with full understanding and answer the questions given at the end. CASE STUDY In December 1986, Mr. Bhatti, Manager of NCR Corporation, Karachi was facing the following decisions. In order to gain a greater share of the personal computer market, Mr. Bhatti wondered whether he should use TV advertising, which was highly expensive, but totally ignored by his competitors in Pakistan. Company Background NCR Corporation, head office, Dayton Ohio, USA, was a multinational computer manufacturing company. Products include mainframe, mini computers, ATM and Personal Computers. The company had more than 1,200 branches in 120 countries of the world. Three branches were in Pakistan: Islamabad, Lahore, and Karachi. Personal Computers (PCs) were introduced by the company in 1985. The market for PCs was much wider than that for Mainframe and Mini computers. NCR was the second largest computer selling company in Pakistan. Mr. Bhatti was looking forward to increasing the sale of his company to a level that it might become the biggest computer company in Pakistan. For this purpose, he was looking for a more effective advertising medium. The advertising budget of NCR Pakistan was approximately US$ 20,000 in 1986.this might increase to US $ 100,000 in 1987, if advertising on TV was started. In 1986, the market share of NCR Pakistan was about 30% of the computer market. In 1986, the computer market in Pakistan was approximately US $ 18 million and was expected to go up to approximately US $ 30 million in 1987. Promotional Programme NCR Corporation used newspapers, magazines, seminars and exhibitions to promote the PC s. Newspapers were in inexpensive and effective advertising medium in Pakistan. The company was using all the leading English newspapers on a regular basis for advertisements of NCR computers. Professional journals and magazines were also used for advertisements. A vast majority of people associated with trade, commerce, business, industry and government offices were thought to be reading such publications. Seminars were also used by the company for advertising the PCs. But this was not a mass medium. The seminars catered for a few selected people. The company could not afford to hold an unlimited number of seminars. As well, seminars occupied two to three days and the business man was reluctant to attend. The company also used exhibition. Exhibition arranged in Pakistan were very expensive and limited jn number. The use of this medium could not generate the contemplated results in terms of steady growth in sales. TV Advertising Mr. Bhatti felt TV advertising could have some benefits: TV was mass medium. No competitor was using this medium. The manager thought that the PC vender to advertise first on TV would take the lead. Prospective buyers were so busy that they might not have the time to watch TV. Mr. Bhatti wondered whether TV advertising should be used for gaining a bigger share of the personal computer market. QUESTIONS FOR DISCUSSION Develop a list of advantages and disadvantages for each promotion medium. Does Mr. Bhatti’s target market watch TV. Should one medium be used exclusively over all other promotional media? Develop a promotional strategy for Mr. Bhatti.
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Q.1: Below given is a case study. Read it with full understanding and answer the questions given at the end.
CASE STUDY
In December 1986, Mr. Bhatti, Manager of NCR Corporation, Karachi was facing the following decisions. In order to gain a greater share of the personal computer market, Mr. Bhatti wondered whether he should use TV advertising, which was highly expensive, but totally ignored by his competitors in Pakistan.
Company Background
NCR Corporation, head office, Dayton Ohio, USA, was a multinational computer manufacturing company. Products include mainframe, mini computers, ATM and Personal Computers.
The company had more than 1,200 branches in 120 countries of the world. Three branches were in Pakistan: Islamabad, Lahore, and Karachi. Personal Computers (PCs) were introduced by the company in 1985. The market for PCs was much wider than that for Mainframe and Mini computers. NCR was the second largest computer selling company in Pakistan. Mr. Bhatti was looking forward to increasing the sale of his company to a level that it might become the biggest computer company in Pakistan. For this purpose, he was looking for a more effective advertising medium. The advertising budget of NCR Pakistan was approximately US$ 20,000 in 1986.this might increase to US $ 100,000 in 1987, if advertising on TV was started. In 1986, the market share of NCR Pakistan was about 30% of the computer market. In 1986, the computer market in Pakistan was approximately US $ 18 million and was expected to go up to approximately US $ 30 million in 1987.
Promotional Programme
NCR Corporation used newspapers, magazines, seminars and exhibitions to promote the PC s.
Newspapers were in inexpensive and effective advertising medium in Pakistan. The company was using all the leading English newspapers on a regular basis for advertisements of NCR computers.
Professional journals and magazines were also used for advertisements. A vast majority of people associated with trade, commerce, business, industry and government offices were thought to be reading such publications.
Seminars were also used by the company for advertising the PCs. But this was not a mass medium. The seminars catered for a few selected people. The company could not afford to hold an unlimited number of seminars. As well, seminars occupied two to three days and the business man was reluctant to attend.
The company also used exhibition. Exhibition arranged in Pakistan were very expensive and limited jn number. The use of this medium could not generate the contemplated results in terms of steady growth in sales.
TV Advertising
Mr. Bhatti felt TV advertising could have some benefits:
- TV was mass medium.
- No competitor was using this medium. The manager thought that the PC vender to advertise first on TV would take the lead.
- Prospective buyers were so busy that they might not have the time to watch TV.
Mr. Bhatti wondered whether TV advertising should be used for gaining a bigger share of the personal computer market.
QUESTIONS FOR DISCUSSION
- Develop a list of advantages and disadvantages for each promotion medium.
- Does Mr. Bhatti’s target market watch TV.
- Should one medium be used exclusively over all other promotional media?
- Develop a promotional strategy for Mr. Bhatti.
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