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Monday, 1 January 2018

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DMM 05
Assignment – I

Assignment Code: 2017DMM05B1                                Last Date of Submission: 15th November 2017
                                                   Maximum Marks: 100

Attempt all the questions.
SECTION – A (25 marks for each question)

1.    Distinguish and differentiate between Products and Services? What are the risks and challenges associated with Marketing of Services? Briefly describe the emergence and growth of service sector in India? Give examples to support your answer?                             (25 Marks)

2.    What do you mean by “SERVICES ENCOUNTER”? Discuss briefly how memorable service encounters assists firms in improving marketability of various services? Discuss how the extended three Ps of marketing are crucial for the airlines and organized retailing industry?                                                                                               (25 Marks)       
Section-B (50 Marks)

Case Study

Physical Evidence – A Case of KFC
The New Logo of KFC
Recently KFC changed its logo and the new logo depicts Colonel Sanders with his signature string tie, but for the first time, replaces his classic white, double-breasted suit with a red apron. The apron symbolizes the home-style culinary heritage of the brand and reminds customers that KFC is always in the kitchen cooking delicious, high quality,, freshly prepared chicken by hand, just the way Colonel Sanders did 50 years ago. This is only the fourth time in more than 50 years that the logo has changed.
KFC Restaurant of the Future
After three years of testing different restaurant designs in the US and international markets, KFC is today revealing its restaurant look of the future. KFC’s new global image is in the process of rolling out in the restaurants around the world and will be implemented in newly constructed stores within the next 12 months.
The new global restaurant design is refreshing, contemporary, highly-differentiated, and helps keep KFC relevant with customers by giving them a higher quality, overall dining experience. The new design is based on thoughtful strategic tenets, which provide a strong brand image foundation, while being flexible for different international market needs. It communicates a progressive and energetic spirit for KFC and prepares the brand for future global growth.
Design features for the US include:
•    Bright, and bold graphics on the restaurant exterior and interior that incorporate the Kentucky Fried Chicken name as well as KFC, communicate a fresh sense of brand pride.   African American artist Charly (Carios) Palmer took KFC’s historical icons and gave them an updated, cool, and modern look. 

•    Graphics and pub signs that showcase the company’s icons: ’11 Secret Herbs and Spices’, ‘Finger Lickin’ Good’, and Sunday Dinner, 7 Days a Week’.

•    Signature symbols (the Colonel, the bucket, Kentucky Fried Chicken) create distinctly KFC retail style shop front designs that invite customers inside with open glass.

•    Heroic use of the signature red colour in a bold architectural way, and crisp white design accents to keep the brand youthful and fresh.
•    Warm and contemporary interior designs with spacious and innovative seating help customers feel welcome and comfortable in groups or along.

•    Thoughtful interior and exterior lighting enhances the customer experience.

•    A digital jukebox that is free of charge for customers to play the music they enjoy most.

•    Southern-inspired brand new menu items, slow-cooked, and served fast to star along-side KFC’s core products.

Since the first Kentucky Fried Chicken restaurant opened its doors in Utah in 1952, the brand continues to enjoy growing popularity around the world. The company’s top markets outside the United States are China, the UK, Australia, South Korea, Mexico, and Europe, including France, Germany, the Netherlands, and Holland.  KFC is also tapping growth in important emerging markets such as India, Russia and Brazil. Each new restaurant opening brings jobs and career opportunities along with economic vitality for that community.
Case Questions for Discussion
1.    Discuss the different physical evidence factors being used by KFC.                  (15 Marks)
2.    Discuss the new logo of KFC. What are the different changes made and why? As a customer, compare your perceptions about the new versus the old logo.                      (15 Marks)
3.    Critically discuss the physical evidence features KFC is going to use in the upcoming outlets.                                                                                       (20 Marks)

DMM 05
Assignment – II

Assignment Code: 2017DMM05B2                                Last Date of Submission: 15th November 2017
                                                   Maximum Marks: 100

Attempt all the questions.
SECTION – A (25 marks for each question)

1.    Outline the innovative marketing strategies that may be adopted by firms engaged in the following business: Your answer should include all aspects covering the 7 Ps of marketing related to the services sector with clear indication of the basis for segmentation and positioning.

a.    Hospitality and tourism
b.    Heath Care Business

2.    Describe the challenges of using franchisees in the service industry? Why are service employees critical to the success of any service organization? Briefly explain what is service blueprinting and develop a blueprint of a Banking Services.
Section-B (50 Marks)

Case Study

The Indian fast food industry is pegged at Rs 20 bn with an expected annual growth rate of 40%. Several multinational like Mc Donald’s, Dominos and Pizza Hut have established their presence in India. A new entrant is Subway, a leading sandwich chain which, with 16,900 outlets in Canada and the US, has surpassed McDonald’s branch strength in these two countries Worldwide. It has a total of 22,361 restaurants, spread across 78 countries. Subway operates in India through a wholly owned subsidiary, Subway Systems India (Subway). Currently, Subway has 38 outlets in India and plans to increase this to 200 outlets by 2005. Subway sells a wide range of vegetarian and non vegetarian sandwiches, which costumers can customize. To cater to Indian tastes, it also offers many Indian recipes such as paneer tikka, chicken tikka, chicken seekh kabab, and spicy vegetables. In deference to Indian sentiments and sensibilities, the Company does not use beef products in India. The preparation counters for vegetarian food are kept separate. What is special about Subway outlets is that the orders are prepared right in front of the customers, with the customers being able to even customize their meal. They can choose the toppings, spices to be added, etc. Speaking about the products that the fast food chain sells, Chetan  Arora, Business Development Manager, Subway Systems India, says, “There is no other fast food chain in India that serves the products we serve. Further, customer interaction is maximum at our stores as the customer can be involved at all stages of the sandwich-making process starting from choosing the bread to the meat, the sauces, spices, and so on, which again is unique to us.”

Subway has adopted the franchising route to penetrate into the market. Each store involves an investment of Rs. 4.5-6 Mn. It has area of 700 sq. ft. with two sections - The dine-in and takeaway counters. Justifying the move to use the franchising route, Fred DeLuca, chairman and founder of Subway, said, “We have never compromised on quality and services. But you cannot be present in 70 countries to monitor this on a day-to-day basis. So we follow the franchise route everywhere.” The franchisee has to bear the cost of setting up the outlet. These include an initial franchise fee, and purchasing or leasing the equipment. The franchisee is also responsible for managing the restaurant and personnel. The franchisee should pay a royalty fee of 8% and 3.5% towards an advertising find in lieu; Subway provides assistance in identifying the location for the outlet, in designing the store, in preparing the menu, in setting up operation systems, in conducting training programs, and in carrying out periodic evaluations.

On the pricing front, the prices range from Rs.40 – Rs.200 – depending in the recipe the customer chooses- 10-15% higher than its nearest competitor McDonalds. But analysts are not sure about the company’s premium pricing strategy. Mr. Arvind Singhal, MD of a retail management consultancy firm, KSA Technopak, commented, “as such there is no negative perception about sandwiches in India. However, the premium pricing strategy for the product may have to be altered, keeping the price conscious Indian consumer in mind.”

Subway has a unique arrangement to promote its brand. The advertising expenses are financed from a specially created advertising fund that is operated by the franchisees themselves. The franchisees contribute a certain percentage of the sales proceeds to build the fund. They also promote the brand locally. The development of advertising campaigns is being looked after by Triton advertising agency. The main objectives of the advertising campaigns are to attract customers to the outlet and also to project the image of the outlet as one that offers healthy and fresh food.  

Case Questions:
1.    “We have never compromised on quality and services. But you cannot be present in 70 countries to monitor on a day-to-day basis. So we follow the franchise route everywhere.” Do you agree with this statement? What are the inherent advantages or disadvantages of adopting the franchisee mode of operation?                                                                                  (15 Marks)

2.    Subway has adopted premium pricing strategy with prices 15% higher than those of its competitors. Do you feel that such a pricing strategy is appropriate for the Indian consumer market?                                                                  (10 Marks)

3.    Do you agree with Subway’s overall marketing strategy in India in terms of its product portfolio, spread of outlets, brand promotion efforts, operational processes, customer interaction, physical evidence of stores, etc.? What suggestions would you have for Subway for improving its marketing approach for sustaining competitive advantage in the marketplace?             (25 Marks)

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