Brand Management
Q1. Maruti has finally gained tremendous success in the luxury Sedan
segment after the launch of a separate brand Nexa. Owing to this Hyundai, the
other major player in the small car segment is feeling the jitters. It feels
that it too should follow the same strategy as it is more known for small cars
and except the Verna, all its other luxury sedans have failed. Some analysts
are even against the idea. Can you guide them on the same? (10 Marks)
Q2. Flipkart after receiving the latest funding from Soft Bank, now
wants to extend its brand in other areas as well. The first new segment it
wants to target is the car buying and selling segment. It wants to come out
with an extension called “Flipkarz” by end of 2017. Analyst are skeptical about
the same. Is it a good decision? What steps should Flipkart follow to make it a
success? (10 Marks)
Q3. Analyze the below given Case study and answer the questions below:
Snapchat is both a messaging platform and a social network. It can't
be used from the regular we and exists only as a mobile app on your iPhone or
Android smartphone. Users can “chat” with their friends by sending them photos,
short videos up to 10 seconds long. You can sort of think of it to be like
texting with pictures or videos. Text chats and video calls are two other
features that were added more recently to the app. One of the most unique
things about Snapchat is the ephemeral components of all the content that gets
shared on it. Photos and videos essentially disappear a few seconds after
they've been viewed by their recipients. Average revenue per user was 90 cents
in the first quarter, Snap said, up from 32 cents the same quarter a year
earlier but below the $1.05 per user in the fourth quarter of 2016.Snap's net
loss widened to $2.21 billion, or $2.31 per share, in the first quarter, from
$104.6 million, or 14 cents per share, due to stock-based compensation related
to the IPO.
Facebook once failed to buy Snapchat; ever since, it's tried to copy
it, mostly without success. Until now. Facebook's Instagram Stories, a clear
Snapchat clone, has more daily users than Snapchat itself - and parent company
Snap Inc. should be very worried. Snap's latest earnings report isn't helping
either. On Thursday, the company said user growth for the April-June period was
a paltry 4 percent from the previous quarter. Snap's stock, already down 44
percent since its initial public offering in May, declined 14 percent, to
$11.90, in extended trading after the results came out. That's less than half of
the $24.48 closing price on its first trading day. While the doom doesn't spell
imminent death, it's a sign that Snapchat could be relegated to the side-lines
as a niche app for young people - or worse, a passing fad - rather than a major
competitor for digital ad dollars like Facebook and yes, even the struggling
Twitter.
BY THE NUMBERS Instagram recently disclosed that Stories, which lets
people share videos and snapshots in a continuous 24-hour loop, has amassed 250
million daily users in the year since it launched. Snapchat, in comparison, had
173 million in the second quarter - and that's all of Snapchat, not just its
version of Stories. Instagram in its entirety, meanwhile, had more than 400
million daily users as of February 2017, the last official count.
TO GROW OR NOT TO GROW
Facebook sends notifications for all sorts of things, such as a friend
doing a live video or another friend posting something after an extended
absence. Another might be on a new item for sale in the service's
"marketplace" section. These notifications - which primarily appear
in the Facebook app but can also be pushed to the phone's home screen - can
conceivably keep people returning day after day. While Snapchat sends fewer
notifications, it encourages daily use through Snap streak, which calls out
streaks in which two friends send each other snaps at least once for more than
three consecutive days. But it isn't working too well, as daily use hasn't
grown much.
Rivals don't always succeed. Facebook recently shut down Life stage,
which lets those 21 and under share photos, selfies and videos with classmates.
Life stage was aimed at high schoolers - a big chunk of Snapchat's audience.
Before that, Facebook killed Slingshot, another Snapchat clone for sending
disappearing messages. In turn, that followed the demise of Poke, which also
let people send photos and videos. All that followed Snapchat's decision to
rebuff Facebook's $3 billion offer for the service in 2013.But Facebook and
others kept trying and trying, until Facebook succeeded with Instagram Stories.
Easy to use and piggybacking on Instagram's existing popularity, Stories
expanded Snapchat's idea to a broader range of users. While Snapchat's audience
is mostly teens and young people, on Instagram, anyone might send a "story."
Other messaging apps are looking to clone Snapchat, too. Google is reportedly
working on Stamp, which The Wall Street Journal compared to Snapchat's Discover
feature for letting people find photo and video-heavy news items. While Google
isn't commenting on Stamp, published reports say the company is in talks with
the likes of Vox Media and Time Inc. to create such content.
a. What according to you is wrong with Snapchat? (5 Marks)
b. What strategies can it undertake to revive? (5 Marks)
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