Harvard Business School 9-501-045

!"#$%&'()*+(*,,,

Sustaining Value

Introduction

@2&(SQ$#&($7(L8'T&#071(K#'8#&1/U(V=JK(Q$?(FWED,I)X(6&<07&5(C8'T&#071(85(#2&(S.'$"&55(>08
;20"2(8(<0'C("'&8#&5(>8:B&(<$'(0#5("2$5&7("B5#$C&'5?U((=$;(5B""&55<B:(#205(.'$"&55(05(6&.&765($7(#2&
'&:8#0$7520.(%&#;&&7(>8:B&("'&8#&6(876(#2&("$5#($<(#2&(>8:B&("'&8#0$7(8"#0>0#0&5?((Y<+(85(52$;7(07(Figure
A+( #2&( >8:B&( "'&8#&6( <8'( &Z"&&65( #2&( <0'C[5( "$5#+( 8( 2012:/( .'$<0#8%:&( .'0"071( $..$'#B70#/( &Z05#5?( @2&
'8#0$($<(>8:B&(#$("$5#("'&8#&5(8(;06&(S.'$<0#8%:&(.'0"071(%876?U((M(.'0"&(07(#205(%876(.8'#0#0$75(0#(07#$
S"$75BC&'( 5B'.:B5U( 876( S<0'C( C8'107U( "$C.$7&7#5( 85( 52$;7( 07( Figure A?( ( S-8::8;8/( \$:<
-$C.87/U(V=JK(Q$?(F,)D,)WX(&7]$/&6(5B"2(8(50#B8#0$7(07()WWH?((Y#(.'$6B"&6(1$:<(":B%5(;20"2(58#05<0&6
#2&( <$B76&'[5( >050$7( $<( %&071( S.:&85071:/( 60<<&'&7#( <'$C( #2&( "$C.&#0#0$7?U( ( Y#( 286( 076B5#'/( :&86071
58:&5($<(^EGN(C0::0$7_(876("$5#($<(1$$65(5$:6(;85($7:/(GH`($<(#2&5&('&>&7B&5?((!<#&7(8(<0'C("'&8#&5(8
50#B8#0$7( 5B"2( 85( 52$;7( 07( Figure A+( 0?&?+( 8#( 8( .8'#0"B:8'( .$07#( 07( #0C&( 0#( 285( "'&8#&6( 2012( "B5#$C&'
>8:B&( 8#( '&:8#0>&:/( :$;( "$5#?( ( =$;&>&'+( 85( #2&( SQ$#&( $7( L8'T&#071( K#'8#&1/U( .$07#5( $B#+( 8"20&>071
5B"2(8(.$50#0$7(05(7$#(8(1B8'87#&&($<(5B""&55_('8#2&'(S#$('&C807(8(>08%:&("$7"&'7+(#2&(<0'C(CB5#(sustain
#205(.'$"&55($<("'&8#071(876("8.#B'071(>8:B&($>&'(#0C&?U((V&C.28505(C07&X((-8::8;8/("$B:6(7$#(5B5#807
#2&( .&8T( 0#( '&8"2&6( 07( )WWH( 85( )WWE( 58:&5( 6'$..&6( #$( :&55( #287( ^H,,( C0::0$7( 876( "$5#( $<( 1$$65( 5$:6
07"'&85&6(#$(FE`($<('&>&7B&5?((K&::071(&Z.&75&5(8:5$(07"'&85&6?(@2&(7&#('&5B:#(;85(#28#(#2&("$C.87/
5B<<&'&6(8(:$55(07()WWE?((@2&("85&(5#B6/(AB$#&6(87(S076B5#'/(07506&'U(85(58/071(S#2&(%011&5#(.'$%:&C
07(1$:<(05("$C071(B.(;0#2(M"#(YY?U((M"#(Y+(#2&(<0'5#(5#81&($<(076B5#'/(&>$:B#0$7(286(%&&7(.'$<0#8%:&+(%B#
07"'&85&6("$C.&#0#0$7(.'&5&7#&6(7&;("28::&71&5(1$071(<$';8'6?

Professor Robert Dolan prepared this note as the basis for class discussion rather than to illustrate either effective or
ineffective handling of an administrative situation.
-$./'012#(3(*,,,(%/(#2&(4'&506&7#(876(9&::$;5($<(=8'>8'6(-$::&1&?((@$($'6&'("$.0&5( $'('&AB&5#( .&'C0550$7( #$
'&.'$6B"&(C8#&'08:5+("8::()DE,,DFGFDHIEF+(;'0#&(=8'>8'6(JB507&55(K"2$$:(4B%:052071+(J$5#$7+(LM(,*)IN+($'(1$(#$
2##.OPP;;;?2%5.?28'>8'6?&6B?( ( Q$( .8'#( $<( #205( .B%:0"8#0$7( C8/( %&( '&.'$6B"&6+( 5#$'&6( 07( 8( '&#'0&>8:( 5/5#&C+
B5&6( 07( 8( 5.'&8652&&#+( $'( #'875C0##&6( 07( 87/( <$'C( $'( %/( 87/( C&875R&:&"#'$70"+( C&"2870"8:+( .2$#$"$./071+
'&"$'6071+($'($#2&';05&R;0#2$B#(#2&(.&'C0550$7($<(=8'>8'6(JB507&55(K"2$$:?

1
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 501-045 Sustaining Value

Figure A =012(a8:B&D#$D-$5#(b&:8#0$7520.
Value to Customer
Consumer
Surplus
Price

Profitable Pricing Band

Firm
Margin

Firm’s Cost-of-Value Creation

M"#(YY[5(8'&(C$'&(7&"&558'/(7$;(#287(&>&'?((Q07#&76$(286( 8( 1'&8#( M"#( Y( 07( #2&( 18C&( .:8/&'

%B507&55_($7:/(#$(%&(B75&8#&6(%/(K$7/(;0#2(0#5(4:8/K#8#0$7?((YJL(:&6(#2&(.&'5$78:("$C.B#&'(%B507&55_
$7:/(#$(%&(B75&8#&6(%/(#2&(:0T&5($<(-$C.8A+(c&::+(876(\8#&;8/?((d>&7(07(:&55(#&"27$:$10"8::/(6'0>&7
076B5#'0&5+( M"#( Y[5( 5&&C( 7$#( #$( :85#( >&'/( :$71( #2&5&( 68/5?( ( @2&( 7$#0$75( $<( 8( S5#&86/D5#8#&U( 876
S&AB0:0%'0BCU( C8/( 5B'>0>&( 07( &"$7$C0"5( #&Z#%$$T5( %B#( '&8:( C8'T&#5( #$68/( 8'&( #/.0"8::/( 7$#( ;&::
6&5"'0%&6(%/(#2&5&(#&'C5?(@2&(50C.:&(<8"#(05(#28#(#20715("2871&_(876+(8(<0'C(285(#$(<$"B5($7(2$;(0#(;0::
5B5#807( #2&( >8:B&( "'&8#0$7P>8:B&( "8.#B'&( .'$"&55( 85( #20715( "2871&?( ( @205( 7$#&( 285( #;$( C8]$'
$%]&"#0>&5O

)? @$(5&#($B#(5/5#&C8#0"8::/(;28#(8'&(#2&(#20715(#28#("2871&(876(2$;(#2$5&("2871&5
&76(8(<0'C[5(M"#(Y?((@205(6&5"'0%&5(#2&(C8]$'(C8'T&#(&>$:B#0$75(;20"2(8(<0'C(CB5#
C$70#$'+(B76&'5#876(876(07"$'.$'8#&(07#$(5#'8#&1/(6&>&:$.C&7#?

*? @$(5B11&5#(#2&(8"#0$75(8(<0'C("87(#8T&(#$(5B5#807(#2&(>8:B&("'&8#&P>8:B&("8.#B'&
.'$"&55($>&'(#0C&?((Y7($#2&'(;$'65+(0#(5&#5($B#(2$;(#$("$C&(B.(;0#2(8(1$$6(M"#(YY+
YYY+(&#"?+(8>$06071(8(50#B8#0$7( ;2&'&(#2&(.85581&($<(#0C&(876(7&;(6&>&:$.C&7#5
%'071(6&":07071(.&'"&0>&6(>8:B&(%/("B5#$C&'5+("$::8.5071(C8'1075+(876(6&":07071
58:&5?

Forces Behind Market Evolution

@2&( <0>&( C8]$'( 8'&85( $<( 878:/505( B76&':/071( C8'T&#071( 6&"050$7( C8T071( 6&5"'0%&6( 07( #2&
SQ$#&( $7( L8'T&#071( K#'8#&1/U( 8:5$( .'$>06&( 8( B5&<B:( <'8C&;$'T( <$'( 5&##071( $B#( #2&( C8]$'( <$'"&5( $<
C8'T&#( &>$:B#0$7?( ( d8"2( $<( #2&( SF( -[5UR"B5#$C&'+( "$C.87/+( "$C.&#0#0$7+( "$::8%$'8#$'5+( 876
"$7#&Z#R"2871&( $>&'( #0C&?( ( -2871&5( 07( &8"2( 8'&( "8.8%:&( $<( %'071071( 6$;7( #2&( "B'#807( $7( M"#( Y_
87#0"0.8#071( 876( 528.071( V075$<8'( 85( .$550%:&X( #2&5&( "2871&5( <8"0:0#8#&( 5B5#807071( #2&( >8:B&
"'&8#&P"8.#B'&(.'$"&55(07(5B""&550>&(8"#5?(e&(7$;(605"B55(&8"2(07(#B'7?

A. Customers

-B5#$C&'5(&>$:>&($>&'(#0C&(07(<0>&(C8]$'(;8/5?

2
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 Sustaining Value 501-045

Factor 1: Defining Requirements Differently

@2&(<0#($<(8(.'$6B"#(#$(8("B5#$C&'[5(;87#5(05(#2&(6&#&'C0787#($<( #2&( .'$6B"#[5( >8:B&( #$( #28#

"B5#$C&'?( ( =$;&>&'+( 85( K:/;$#fT/( 8'1B&5( 07( 205( %$$T+( Value MigrationO( S-B5#$C&'( .'0$'0#0&5R#2&
055B&5(#28#(8'&(C$5#(0C.$'#87#(#$(#2&C+(07":B6071(876(1$071(%&/$76(#2&(.'$6B"#($'(5&'>0"&($<<&'&6R
28>&(8(78#B'8:(#&76&7"/(#$("2871&?(?(?(?U)((@205(C&875(#28#(#2&(>8:B&($<(#2&(.'$6B"#("2871&5?((Y<(#2&(<0#
285( %&&7( $.#0C0f&6( #$( #2&( #2&7D&Z05#071( .'0$'0#0&5+( #2&( >8:B&( #/.0"8::/( 1$&5( 6$;7( 85( #2&( .'0$'0#0&5
<$::$;(#2&0'(78#B'8:(#&76&7"/(#$("2871&('8#2&'(#287('&C807(<0Z&6?

e2/(6$(.'0$'0#0&5("2871&g((M(T&/(<8"#$'(05(#2&("B5#$C&'[5(&Z.&'0&7"&(;0#2(#2&(.'$6B"#(0#5&:<?
9$'( &Z8C.:&+( 07( 5&:&"#071( 8( .8"T81071( C8#&'08:( <$'( 520.C&7#5+( 8( '&#80:( 5#$'&[5( .'0C8'/( .B'"285&
"$7506&'8#0$75(;&'&(.'0"&(876(855B'87"&(#28#(#2&(520..&6(0#&C(606(7$#(%'&8T?((@2&5&(.'0$'0#0&5(:&6(#$
#2&(B5&($<(.$:/5#/'&7&(S.&87B#5U(<$'(520.C&7#($<(5&C0D'B11&6(0#&C5?((Y#(;85($7:/(8<#&'(#2&(520..071
'$$C( "$7505#&7#:/( %&"8C&( C&55/+( ;0#2( #2&( :0##:&( S.&87B#5U( 8::( $>&'( #2&( <:$$'+( #28#( #2&( "'0#&'0$7( $<( 8
S":&87( 5$:B#0$7U( 1807&6( 87/( 50170<0"87"&( 07( #2&( .B'"285&( .'$"&55?( ( dZ.&'0&7"&( ;0#2( #2&( .'$6B"#
"8#&1$'/( 2&:.5( #2&( "$75BC&'( B76&'5#876( #2&0'( .'&<&'&7"&5( 876( 7&&65( %&##&'?( ( @205( :&865( #$( 520<#5( 07
#2&(0C.$'#87"&($<(>8'0$B5(.'$6B"#(8##'0%B#&5(07(#2&(.B'"285&(.'$"&55?

Q&;(B5&5(<$'(8(.'$6B"#("87(5B'<8"&($>&'(#0C&?((Y7(#2&(.'&DY7#&'7&#(&'8+(C$5#(2$C&D4-(%B/&'5
;&'&(<$"B5&6($7(#2&(7BC%&'D"'B7"2071(.$;&'($<(C8"207&5?((L$6&C(5.&&6(;85(7$#(8(%01("$7"&'7(<$'
C87/?( ( M5( #2&( Y7#&'7&#( &'8( 8''0>&6+( "$77&"#0>0#/( %&"8C&( #2&( T&/( $>&'( "$C.B#8#0$78:( 5.&&6( 876
8##'0%B#&(0C.$'#87"&5(520<#&6(6'8C8#0"8::/?

Factor 2: Getting Smarter About Options

98"#$'( )( 6&8:#( ;0#2( #2&( "$75BC&'( %&"$C071( 5C8'#&'( 8%$B#( 205( $;7( ;87#5?( ( 98"#$'( *( 05( #2&
"$75BC&'(1&##071(5C8'#&'(8%$B#(8:#&'78#0>&(;8/5($<(C&&#071(#2$5&(;87#5?((M#(8(10>&7(.$07#(07(#0C&+(8
.'$6B"#("87(%&(2012:/(>8:B&6(6B&(#$(#2&("B5#$C&'[5(017$'87"&($<(>08%:&(8:#&'78#0>&5?((M5(#2&("B5#$C&'
%&"$C&5( %&##&'( 07<$'C&6+( #2&( >8:B&( $<( #2&( .'$6B"#( 6&":07&5( %&"8B5&( 0#( 05( 7$;( &>8:B8#&6( 818075#( 8
5#'$71&'("$C.&#0#0>&(<0&:6?

Factor 3: Shifting Locus of Purchasing Authority

Y7( 8( 6&"050$7DC8T071( B70#( ;0#2( CB:#0.:&( .:8/&'5+( #2&( .$;&'( $<( 0760>06B8:( .8'#0&5( "87( 520<#
$>&'( #0C&?( ( @205( 05( 60<<&'&7#( <'$C( 98"#$'( )( 07( #28#( #2&( .'0$'0#0&5( $<( 0760>06B8:( C&C%&'5( C8/( '&C807
B7"2871&6+( %B#( #2&( 6&"050$7DC8T071( .'$"&55( $<( #2&( B70#( ;$'T5( AB0#&( 60<<&'&7#:/( 6B&( #$( 520<#071
.$;&'?( ( 9$'( &Z8C.:&+( 0#( 05( "$CC$7( #28#( 07( &8':/( 5#81&5( $<( B5071( 8( 7&;( #&"27$:$1/+( .&'<$'C87"&
'&AB0'&C&7#5(8'&( T&/( 85( 5$.205#0"8#&6( &76( B5&'5( 2$:6( 8( 1'&8#( 6&8:( $<( .$;&'( 07( #2&( 6&"050$7DC8T071
.'$"&55?( ( !>&'( #0C&+( 85( .&'<$'C87"&( B7"&'#807#/( 6&":07&5+( #2&( .$;&'( $<( #2&( .B'"285071( 6&.8'#C&7#
07"'&85&5( 876( #2&( <$"B5( 07( "B5#$C&'( 6&"050$7( C8T071( 520<#5( #$( .'0"&?( ( hB5#( 85( 07( 98"#$'( )+( ;2&7( #2&
.'0$'0#0&5( $<( 87( 0760>06B8:( "2871&+( #2&( 7&#( '&5B:#( $<( #205( .$;&'( 520<#( 05( 87( &<<&"#0>&( "2871&( 07( #2&
.'0$'0#0&5($<(#2&(6&"050$7DC8T071(B70#?

Factor 4: Changing Ability to Pay

Y7( 8660#0$7( #$( 8( >8:B&( 876( "$''&5.$76071( ;0::0717&55D#$D.8/( &:&C&7#+( "$7506&'8#0$7( 52$B:6
%&(10>&7(#$("2871&5(07("B5#$C&'[5(8%0:0#/(#$(.8/?(M5(K:/;$#fT/(.B#5(0#+(S-2871&5(07("B5#$C&'(;&8:#2
"'&8#&( 7&;( .'0$'0#0&5?( ?(?(?U*( ( @2&( &<<&"#( $<( 07"'&85&6( 8%0:0#/D#$D.8/( 05( 7$#( 7&"&558'0:/( $%>0$B5?
Y7"'&85071("$75BC&'(;&8:#2(05(7$#(7&"&558'0:/(1$$6(<$'(8(.'$6B"#?(9$'(&Z8C.:&+(.8'#($<(#2&(6&C876
<$'(8(4:8/K#8#0$7D#/.&(18C&(.:8/&'(;0#2(8(.'0"&($<(5&>&'8:(2B76'&6(6$::8'5("$B:6(%&(<B&:&6(%/(#2&(:8"T

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
)(M?h?(K:/;$#fT/+(Value Migration(VJ$5#$7O((=8'>8'6(JB507&55(K"2$$:(4'&55+()WWIX?
*(Y%06?+(.?(*F*?

3
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 501-045 Sustaining Value

$<(605.$58%:&(07"$C&(<$'(8(.&'5$78:("$C.B#&'(07(#2&(2$C&?((M5(605.$58%:&(07"$C&('$5&(876(%'$B12#(8
4-( 07#$( #2&( 2$C&+( #2&( 07"'&C&7#8:( >8:B&( $<( 8( 4:8/K#8#0$7( ;$B:6( 6&":07&?( ( @2&( 8%0:0#/D#$D.8/( &<<&"#
CB5#(%&("8'&<B::/(#2$B12#(#2'$B12(85(87(07"'&85&(07("B5#$C&'(;&8:#2(;0::('805&(#2&(.'$6B"#[5(>8:B&(#$
#2&("B5#$C&'(07(5$C&(50#B8#0$75(876(:$;&'(0#(07($#2&'5?((@2&(58C&(8..:0&5(#$(8(6&"'&85&(07("B5#$C&'
;&8:#2?

Factor 5: Exiting the Marketing

@2&( .'$"&55( $<( 5B5#807071( >8:B&( 60<<&'5( 6&.&76071( B.$7( #2&( 6B'8%0:0#/( $<( #2&( .'$6B"#( 07
AB&5#0$7?((-$7506&'(#2&(>&'/(60<<&'&7#("28::&71&5(<8"071(-$"8D-$:8(876(c&::?((d>&'/68/(#2&("$75BC&'
;8T&5( B.( ;0#2( #2&( 7&&6( <$'( 8( 680:/( 5B..:/( $<( :0AB065?( d>&7( #2$B12( 2&( $'( 52&( 6'87T( ),,( $B7"&5( $<
:0AB06( /&5#&'68/+( 87$#2&'( ),,( 05( 7&&6&6( #$68/?( ( Y7( 8( 5&75&+( .$#&7#08:( 6&C876( <$'( -$T&( '&.:&7052&5
0#5&:<($>&'7012#?((Y7("$7#'85#+(0<(#2&("$75BC&'(%$B12#(8(7&;(c&::("$C.B#&'(/&5#&'68/+(2&($'(52&(05($B#D
$<D#2&DC8'T&#(#$68/(876(05(:0T&:/(#$(%&(5$(<$'(#2&(7&Z#("$B.:&($<(/&8'5?

@2&( c&::( .B'"285&( 6&5#'$/&6( V8#( :&85#( #&C.$'8'0:/X( 5$C&( $<( #2&( <B#B'&( 6&C876( <$'( c&::
"$C.B#&'5?((K0C0:8':/+(0<(5$C&$7&(%B/5(8(J01(J&'#28(6'0>&'(<'$C(-8::8;8/+(0#[5(B7:0T&:/(2&(;0::(52$;
B.( #2&( 7&Z#( 68/( #$( %B/( 87$#2&'R7$( C8##&'( 2$;( CB"2( 2&( :0T&6( 0#?( ( @2&( 58C&( 05( #'B&( <$'( 8( K$7/
4:8/K#8#0$7?((e2&'&85(#2&(C8'T&#&'($<(8(7$76B'8%:&(05("$7"&'7&6(;0#2(5B5#807071(#2&(>8:B&(;0#2(#2&
58C&("B5#$C&'5+(#2&(6B'8%:&(1$$65(C8'T&#&'(CB5#(C$>&(#$(7&;("B5#$C&'5(85(0#5(58:&5(&<<&"#0>&:/(.B#
%B/&'5($7D#2&D506&:07&5($<(#2&(C8'T&#(<$'(8(:$71(.&'0$6($<(#0C&?

B. Competitors

M"#0$75(%/("$C.&#0#0$7(C8/(%&(#2&(C$5#(50170<0"87#(#2'&8#(#$(#2&(>8:B&(8("$C.87/(285("'&8#&6
;0#2( "B5#$C&'5?( ( @2&( C$5#( 0C.$'#87#( 8"#0$75( #$( #'8"T( 8'&( .'$6B"#( C$60<0"8#0$75+( 7&;( .'$6B"#
07#'$6B"#0$75+(876(.'0"071(C$>&5?((e20:&(#2&'&(05(:$#5($<(605"B550$7($<(#2&(%&7&<0#5($<(%&071(S<0'5#D#$D
C8'T&#+U(8(<$::$;&'(5#'8#&1/(285(.'$>&7(5B""&55<B:(07(C87/(50#B8#0$75?( ( i&>0##( $'01078::/( 5&#( $B#( #2&
>8:B&($<(SY77$>8#0>&(YC0#8#0$7U(07(#2&(Harvard Business Review(07()WII(876(K"2788'5[(%$$T+(Managing
Imitation Strategies+( .B#5( <$'#2( #2&( .'$.$50#0$7( #28#( 0C0#8#0$7( 05( 8( SC$'&( .'&>8:&7#( '$86( #$( %B507&55
1'$;#2(876(.'$<0#5U(#287(077$>8#0$7?N((Y7(8(50C0:8'(>&07+(L"\'8#2G(285(5&#($B#(#2&(%&7&<0#5($<(8(S<85#D
<$::$;&'( 5#'8#&1/U( 07( ;20"2( 8( S<$::$;&'( <0'CU( 6&:0%&'8#&:/( ;80#5( <$'( #2&( .0$7&&'( <0'C( #$( &7#&'( #2&
C8'T&#?( ( @2&( S<$::$;&'( <0'CU( ":$5&:/( $%5&'>&5( #2&( '&8"#0$7( $<( #2&( C8'T&#( #$( #2&( .0$7&&'[5( $<<&'071+
#2&'&%/(1807071(8(6&&.&'(B76&'5#876071($<(B5&'(;87#5?

Y7DT076( "$C.&#0#$'5( "87( '&5.$76( #$( 87$#2&'( <0'C[5( 5B""&55<B:( M"#( Y( ;0#2( #2'&&( #/.&5( $<
$<<&'0715O

V0X @2&( %850"( SC&D#$$D.'$6B"#UR#2&'&( C8/( %&( 5C8::( 60<<&'&7"&5( <'$C( #2&( <0'C[5
.'$6B"#+( %B#( #2&( %850"( 07#&7#( 05( ]B5#( #$( 1&#( 8( 528'&D$<D#2&D.0&( ;20"2( #2&( <0'C[5
.'$6B"#(285(52$;7(&Z05#&6(8#(8("&'#807(.'0"&(.$07#?

V00X @2&(:$;D"$5#(ST7$"TD$<<UR2&'&(#2&("$C.&#0#$'(B5&5(#2&("$5#(86>87#81&($<(7$#
%&071(#2&(.0$7&&'(#$($<<&'(:$;(.'0"&5?((M(.0$7&&'(#/.0"8::/(07"B'5(%$#2( C8'T&#
6&>&:$.C&7#( 876( '&5&8'"2( 876( 6&>&:$.C&7#( &Z.&75&5( #$( "$CC&'"08:0f&( 8
.'$6B"#?( ( 4&'28.5( 806&6( %/( '&>&'5&( &7107&&'071( $<( #2&( .0$7&&'[5( .'$6B"#+( #2&
<$::$;&'( 6&>&:$.5( 0#5( .'$6B"#( ;0#2( CB"2( :$;&'( 07>&5#C&7#?( ( @205( 05( %850"8::/

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
N( @?( i&>0##+( SY77$>8#0>&( YC0#8#0$7+U( Harvard Business Review+( K&.#&C%&'D!"#$%&'( )WWI_( 876( K?4?( K"2788'5+
Managing Imitation Strategies(Vc&#'$0#O((@2&(9'&&(4'&55+()WWGX?
G(L?(L"\'8#2+(Product Strategy for High-Technology Companies(VQ&;(j$'TO((L"\'8;D=0::+()WWFX?

4
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 Sustaining Value 501-045

;28#(4-D":$7&(C87B<8"#B'&'5( 606( #$( YJL( 8<#&'( YJL[5( 5B""&55<B:( C8'T&#( &7#'/

07()WE)?F

V000X @2&( S077$>8#0>&( 0C0#8#0$7UR8( #'B:/( %&##&'( .'$6B"#+( .&'28.5( 07"$'.$'8#071

5$C&( #&"27$:$1/( ;20"2( ;85( 7$#( 8>80:8%:&( #$( #2&( .0$7&&'?( ( KC0#2Dk:07&[5
@818C&#(;85(#2&(<0'5#(87#0DB:"&'(C&60"8#0$7(#$('&8"2(#2&( C8'T&#?((KC0#2Dk:07&
07"B''&6( #2&( C8'T&#071( &Z.&75&( $<( "$7>07"071( #2&( C&60"8:( "$CCB70#/( #28#( 8
.0::( ;85( 8( >08%:&( 8:#&'78#0>&( #$( 5B'1&'/+( 876( @818C&#( %&"8C&( #2&( %&5#D5&::071
6'B1(07(#2&(;$':6?((=$;&>&'+(/&8'5(:8#&'+(\:8Z$(%$B12#(l87#8"(#$(C8'T&#(;0#2
5B.&'0$'( .&'<$'C87"&( "28'8"#&'05#0"5?( ( l87#8"( 5$$7( #$$T( $>&'( C8'T&#D528'&
:&86&'520.(<'$C(@818C&#?

-$C.&#0#$'5(78#B'8::/(28>&(CB"2(C$'&($<(87(07#&'&5#(07(5&&071(8(>&'/(5B""&55<B:(M"#(Y("$C&
#$( 87( &76( #287( #2&( <0'C( &7]$/071( 0#( 6$&5?( 9$'( &Z8C.:&+( 07( #2&( &8':/( )WE,5+( d85#C87( k$68T( &7]$/&6
$>&'(H,`(C8'T&#(528'&(876(H,`(1'$55(C8'1075(07(#2&("$7>&7#0$78:(<0:C(%B507&55(876(;$B:6(]B5#(:0T&
#$(28>&(#28#(50#B8#0$7(.&'505#(85(:$71(85(.$550%:&?((9B]0+($7(#2&($#2&'(2876+(;$B:6(:0T&(#$("2871&(#20715
8(%0#?((e20:&(8(605#87#(5&"$76(#$(k$68T(07(C8'T&#(528'&+(#2&(FF`(C8'1075(0#(&7]$/&6(C&87#(9B]0(;85
7$#(07#&'&5#&6(07(075#87#87&$B5:/(6&5#'$/071(#2&(C8'T&#(&0#2&'(#2$B12?((M(.:8/&'(;0#2(7$(5#8T&(07(#2&
&7$'C$B5:/( .'$<0#8%:&( <0:C( %B507&55( #2B5( 286( C$'&( $<( 87( 07"&7#0>&( #287( &0#2&'( $<( #2&( #;$
"$7>&7#0$78:( <0:C( 1087#5( 07( 6&>&:$.071( 8( 7&Z#D1&7&'8#0$7( .0"#B'&D#8T071( #&"27$:$1/( 7$#( B5071
"$7>&7#0$78:(<0:C?((@2B5+(#2&(<0'C(CB5#(%&(8:&'#(7$#($7:/(#$(C$>&5(%/(07DT076("$C.&#0#$'5+(%B#( 8:5$
<'$C( .$#&7#08:( "'$55D"8#&1$'/( "$C.&#0#$'5( ;2$( C012#( C&&#( #2&( 58C&( %850"( "$75BC&'( 7&&6( 07( 8
<B768C&7#8::/(60<<&'&7#(;8/?

9078::/+(#2&(>8:B&(8(<0'C(285("'&8#&6(;0#2(8("B5#$C&'("87(%&(68C81&6(%/(.'0"071(8"#0$75(%/
"$C.&#0#$'5?(@2&(.'0"&(8#(;20"2(8(>08%:&("$C.&#0#$'(5&::5(05(8("$C.$7&7#($<(#2&(>8:B&D07DB5&(]B61C&7#
8( "B5#$C&'( &0#2&'( &Z.:0"0#:/( $'( 0C.:0"0#:/( C8T&5?( @2B5+( 8( .'0"&( 6&"'&85&( %/( 8( "$C.&#0#$'( VC$#0>8#&6
&0#2&'(%/(8(6&50'&(#$(1807(C8'T&#(528'&($'(#2&(C$'&(52$'#D#&'C(1$8:($<(":&8'071($B#(&Z"&55(07>&7#$'/X
#'011&'5(8(6&"&85&(07(#2&(>8:B&($<(8(<0'C[5(.'$6B"#?

C. Collaborators

J$#2(B.5#'&8C(5B..:0&'5(876(6$;75#'&8C(605#'0%B#$'5("87(%'071(8%$B#("2871&5(07(#2&(>8:B&
.:8"&6( $7( 8( <0'C[5( .'$6B"#?( ( !7&( C&"28705C( <$'( #205( 05( <$'( #2&( "$::8%$'8#$'5( #$( %&"$C&( C$'&
"$C.&#0#$'5(#287("$::8%$'8#$'5?((9$'(&Z8C.:&+(K$7/(5B..:0&6(JMb-!(;0#2(T&/(#B%&(#&"27$:$1/(<$'(0#5
$>&'2&86(.'$]&"#$'5?((e20:&(K$7/(5$:6(0#5($;7(.'$]&"#$'5(#$(#2&(:$;(&76($<(#2&(C8'T&#+(0#(070#08::/(:&<#
JMb-!(876($#2&'(S70"2&U(5B..:0&'5(#2&(2012(&76($<(#2&(C8'T&#?I((=$;&>&'+(K$7/(#2&7(&7#&'&6(#2&
2012( &76( #$( &Z.:$0#( 0#5( :8#&5#( 86>87"&5( 07( 0#5( #B%&( #&"27$:$1/?( ( K0C0:8':/+( C8]$'( 605#'0%B#$'5( "87
%&"$C&("$C.&#0#$'5(>08(#2&(5$B'"071($<(.'$6B"#(#$(%&(5$:6(B76&'(0#5($;7(78C&?((9$'(&Z8C.:&+(C8]$'
6'B1("28075(876('&#80:&'5(5B"2(85(-aK(876(e8:DL8'#("$C.&#&(;0#2(k$68T(07(#2&(<0:C(%B507&55+(5&::071
<0:C(5$B'"&6(<'$C(5B..:0&'5(5B"2(85(NL(876(4$:8'$06(B76&'(#2&(S2$B5&[5U(%'876(78C&?

D. Company

!>&'( #0C&+( #2&( "$C.87/( "$B:6( :$5&( 0#5( 8%0:0#/( #$( 5B5#807( 0#5( >8:B&( "'&8#0$7( 8"#0>0#0&5( <$'
07#&'78:( '8#2&'( #287( &Z#&'78:( '&85$75+( 85( C87/( <0'C5( 07( #2&( 2012D#&"27$:$1/( 8'&78( 8'&( &Z.&'0&7"071?
k&/( &C.:$/&&5( 07( &7107&&'071+( C87B<8"#B'071( $'( C8'T&#071( C8/( %&( 6'8;7( 8;8/( #$( "$C.&#0#$'5( 85
#2&( "$C.87/[5( 5B""&55( 07( M"#( Y( 6'8;5( 8##&7#0$7( 876( .&$.:&( 6&>&:$.( 87( 8..'&"08#0$7( <$'( #2&

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
F(Y%06?+(..?(FFDFI(876()GW?
I(K&&(=JK("85&(Q$?(FW)D)NN?

5
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 501-045 Sustaining Value

C8781&C&7#( #8:&7#?( ( KB""&55( 07( M"#( Y( "87( :&86( #$( 87( 8''$187"&( #28#( 605#87"&5( #2&( "$C.87/( <'$C
"B5#$C&'5(876(T&/("$::8%$'8#$'5(876(&'$6&5(>8:B&($>&'(#0C&?

E. Context

-$7#&Z#('&<&'5(#$(#2&(&7>0'$7C&7#(07(;20"2(#2&(07#&'8"#0$7($<(#2&($#2&'(G(-[5(#8T&5(.:8"&?((@2&
#;$( C$5#( 0C.$'#87#( <8"#$'5( #$( "$7506&'( 2&'&( 8'&( #2&( '&1B:8#$'/P:&18:( 5&##071( 876( #&"27$:$10"8:
"2871&5?

@2&( '&1B:8#$'/P:&18:( '&8:C( 05( "'0#0"8:( 07( 6&#&'C07071( ;20"2( .'$6B"#5( C8/( &>&7( %&( $7( #2&
C8'T&#?((-8::8;8/(\$:<(":B%5(CB5#("$7<$'C(#$(m70#&6(K#8#&5(\$:<(M55$"08#0$7(VmK\MX(5.&"0<0"8#0$75
$'( &:5&( 6&C876( ;$B:6( %&( 5&>&'&:/( :0C0#&6?H( ( L$'&( 5#'071&7#( 05( #2&( 9$$6( 876( c'B1( M6C0705#'8#0$7
V9cMX( 8..'$>8:( 7&"&558'/( <$'( #2&( 58:&( $<( 6'B15( 876( C&60"8:( 6&>0"&5?( ( 9cM( 8"#0$7( "87( '&5B:#( 07
.'$6B"#5( %&071( '&"8::&6( <'$C( #2&( C8'T&#?( ( 9078::/+( .8#&7#( :8;5( "87( '&5#'0"#( ;28#( .'$6B"#5( C8/( %&
$<<&'&6(;2&7?((dZ.0'8#0$7($<(8(.8#&7#(#/.0"8::/(%'0715(07(S1&7&'0"U(C87B<8"#B'&'5(07(8##'8"#0>&(6'B1
C8'T&#5( 876( $#2&'( <0&:65?( ( -$C.870&5( CB5#( C$70#$'( 2$;( #2&( "2871071( '&1B:8#$'/P:&18:( :8765"8.&
0C.8"#5(%$#2(0#5($;7(876("$C.&#0#$'5[(8%0:0#/(#$(5B..:/(.'$6B"#?

@2&( B76&':/071( &78%:071( #&"27$:$10&5( <$'( &0#2&'( C8T071( #2&( .'$6B"#( $'( C8'T&#071( 0#( "87
"2871&(6'8C8#0"8::/($>&'(#0C&?((M(7&;("20.(C8/($<<&'(#2&(.$550%0:0#/($<(8(7&;(<&8#B'&(5&#(<$'(8(18C&
C8"207&?(@2&(Y7#&'7&#(0C.8"#&6(#2&(>8:B&($<(C87/(<0'C5[(.'$6B"#5(%/(.'$>06071(87(&<<&"#0>&('$B#&(#$
#2&( C8'T&#( <$'( "$C.&#0#$'5( .'&>0$B5:/( %:$"T&6( <'$C( "$C.&#071( &<<&"#0>&:/( %/( ":$11&6( 605#'0%B#0$7
"2877&:5?

M::($<(#2&5&(.$550%:&('$B#&5(#$(B.5&##071(#2&(>8:B&("'&8#&6(52$;(#28#(8(>8:B&(.'$.$50#0$7(<0Z&6
8#(8(C$C&7#(07(#0C&(05(B7:0T&:/(#$(:85#(<$'(:$71?((@2B5+(85(7$#&6(%/(h$27(Q&52&0C+(07(High Tech Start
Up+E#2&(#;$(T&/(AB&5#0$75(#$(%&(875;&'&6(07(8(%B507&55(.:87(.'&5&7#&6(#$(>&7#B'&("8.0#8:05#5(8'&O

)? e28#(05(#2&("$C.&#0#0>&(86>87#81&g

*? e28#(05(#2&(.:87(#$(5B5#807(#28#("$C.&#0#0>&(86>87#81&($>&'(#0C&g

i0T&;05&+( L"\'8#2W( "0#&5( S5B5#8078%:&( "$C.&#0#0>&( 86>87#81&U( 85( 8( T&/( 071'&60&7#( 07( 8( 5B""&55<B:
.'$6B"#(5#'8#&1/?((@2&(<$::$;071(5&"#0$7(5&#5($B#(#2&(C8]$'('$B#&5(#$(5B5#807071(#2&(>8:B&(.'$.$50#0$7
$>&'(#0C&?

Sustaining the Value Creation/Capture Process

@2&(#2'&&(C8]$'(5#'8#&10&5(<$'(5B5#807071(#2&(>8:B&("'&8#0$7P"8.#B'&(.'$"&55(8'&O

)? 4'&>&7#( "$C.&#0#$'5( <'$C( &'$6071( >8:B&( %/( T&&.071( #2&( >8:B&( "'&8#0$7( .'$"&55
.'$.'0&#8'/?

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
H( i&18::/+( 8( >&76$'( "87( 5&::( ":B%5( $'( %8::5( 7$#( C&&#071( mK\M( 5.&"0<0"8#0$75?( ( =$;&>&'+( .:8/&'5( 07( 87/
#$B'78C&7#5+( &>&7( 8C8#&B'5( 07( :$"8:( "$B7#'/( ":B%( "$C.&#0#0$75+( .:8/( B76&'( #2&( 'B:&5( $<( #2&( mK\M( 5$( #2&
&AB0.C&7#(;$B:6(7$#(%&(B5&6(&>&7(07(5B"2(.:8/?
E(h?(Q&52&0C+(High Tech Start Up(Vc&#'$0#O((@2&(9'&&(4'&55+(*,,,X?
W(K&&(L"\'8#2+($.?("0#?

6
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 Sustaining Value 501-045

*? Y7#'$6B"&( 7&;( .'$6B"#5( ;20"2( 868.#( #$( $'( %&##&'( 87#0"0.8#&( #2&( "2871&5( 07( #2&( -[5( ]B5#
605"B55&6?

N? JB0:6(%'876(&AB0#/?

@2&5&( 5#'8#&10&5( 8'&( 7$#( #/.0"8::/( 5B%5#0#B#&5+( %B#( '8#2&'( "$C.:&C&7#5( #$( $7&( 87$#2&'?( ( e&( 7$;
605"B55(&8"2(07(#B'7?

Strategy 1: Proprietary Process

M( 5B5#8078%:&( 86>87#81&( "87( 6&'0>&( <'$C( 8( .'$"&55( ;20"2( 05( .'$.'0&#8'/( 876( "87( %&
.'$#&"#&6?((JB0:6071(#205(5B5#8078%0:0#/(285(#$(%&(.8'#($<(#2&(6&5017(.285&($<(#2&(.'$6B"#?((9$'(&Z8C.:&+
YJL[5(078%0:0#/(#$( 5B5#807(0#5(.$50#0$7(07(.&'5$78:("$C.B#&'5("87(%&(#'8"&6(#$(0#5(6&"050$7(#$( %85&( 0#5
.'$6B"#($7($B#5$B'"&6(C8#&'08:5+(>0f?(87(Y7#&:(C0"'$.'$"&55$'(876(L0"'$5$<#[5($.&'8#071(5/5#&C?((YJL
"$B:6( 7$#( "$7#'$:( "$C.&#0#$'[5( 8""&55( #$( #2&5&( B76&':/071( #&"27$:$10&5( 876( "$C.&#0#$'5( ;&'&( &850:/
8%:&(#$('&.:0"8#&(#2&(&55&7#08:5($<(YJL[5($<<&'071?),

@2&( #;$( C8]$'( .8#25( #$( "$7506&'( <$'( .'$#&"#071( 8( .'$.'0&#8'/( .'$"&55( $'( .'$6B"#( 8'&O( ( V0X( #$
T&&.(0#(8(#'86&(5&"'&#(876(V00X(#$(8..:/(<$'(8(.8#&7#?

@2&( :8;( 6$&5( $<<&'( .'$#&"#0$7( $<( #2&( C058..'$.'08#0$7( $<( S#'86&( 5&"'&#5?U( ( c&<07071( 0<
5$C&#2071(05($'(05(7$#(8(S#'86&(5&"'&#U(05(#/.0"8::/(7$7#'0>08:+(2$;&>&'?((K#&'7(876(d$>8:60))(.'$>06&(8
:05#($<(AB&5#0$75(#$(;20"2(8(S/&5U(875;&'(07"'&85&5(#2&(:0T&:02$$6(#28#(5$C&#2071(;$B:6(%&(]B61&6(8
S#'86&(5&"'&#U(07(:&18:(.'$"&&60715O

)? Y5(#2&(07<$'C8#0$7(T7$;7($7:/(;0#207(#2&(<0'C(876(7$#(%/("$C.&#0#$'5g

*? c$&5($7:/(8(5C8::(5&:&"#(1'$B.($<(&C.:$/&&5(28>&(8""&55(#$(#2&(07<$'C8#0$7g

N? c$&5(#2&(<0'C(&C.:$/(C&85B'&5(#$(.'$#&"#(#2&(07<$'C8#0$7(<'$C(605":$5B'&g

G? =85(#2&(<0'C(&Z.&76&6(&<<$'#5(07(6&>&:$.071(#2&(07<$'C8#0$7g

F? e$B:6(8"AB050#0$7($'(6B.:0"8#0$7($<(#2&(07<$'C8#0$7(%/($#2&'5(%&(60<<0"B:#(876("$5#:/g

I? Y5(#2&(07<$'C8#0$7(>8:B8%:&(#$(#2&(<0'C(876(0#5("$C.&#0#$'5g

K$C&( &Z8C.:&5( $<( #'86&( 5&"'&#5( 8'&( 6&5017( 6'8;0715+( "B5#$C&'( :05#5( 876( C87B<8"#B'071( .'$"&55&5?
b&>&'5&( &7107&&'071( 05( 8( :&18:( 8"#0>0#/R5$( 8( "$C.&#0#$'( 05( <'&&( #$( :&8'7( ;28#&>&'( 0#( "87( 8%$B#( #2&
6&5017($'(C87B<8"#B'071(.'$"&55(%&2076(87(0#&C(%/(.'$"B'071($7&(876(5/5#&C8#0"8::/(.B::071(0#(8.8'#?

Y7(!"#$%&'()WWI+(#2&(.85581&($<(#2&(d"$7$C0"(d5.0$781&(M"#(1'&8#:/(07"'&85&6(#2&(.&78:#/($<
#2&<#($<(#'86&(5&"'&#5RC8T071(0#(8(<&:$7/?((-$7#'8"#5(07(;20"2(87(&C.:$/&&(81'&&5(7$#(#$(605":$5&(8
#'86&(5&"'&#($'(B5&(0#(0<(2&($'(52&(52$B:6(:&8>&(#2&("$C.87/(8'&(&7<$'"&6?

K$C&('&18'6(8(.8#&7#(85(#2&(06&8:(;8/(#$(.'$#&"#(8(.'$.'0&#8'/(.'$"&55($'(.'$6B"#?)*((@2&(m?K?
48#&7#(876(@'86&C8'T(!<<0"&(V4@!X("87(1'87#(8(.8#&7#(#$(8(.&'5$7(;2$(S07>&7#5($'(605"$>&'5(87/(7&;
876( B5&<B:( .'$"&55+( C8"207&+( C87B<8"#B'&+( $'( "$C.$50#0$7( $<( C8##&'+( $'( 87/( 7&;( 876( B5&<B:

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
),(K&&(L"\'8#2+($.?("0#?+(<$'(6&#80:5?
))(i?e?(K#&'7(876(@?-?(d$>8:60+(Legal Aspects of Marketing Strategy(Vd71:&;$$6(-:0<<5+(Q?h?O((4'&7#0"&D=8::+()WEGX?
)*( @2&( %$$T+( Rembrandts in the Attic( %/( b0>&##&( 876( k:07&( VJ$5#$7O( ( =8'>8'6( JB507&55( K"2$$:( 4'&55+( *,,,X+
6&5"'0%&5(.8#&7#(.$:0"/(07(6&#80:?
7
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 501-045 Sustaining Value

0C.'$>&C&7#(#2&'&$<?(?(?(?U)N((@2&(.8#&7#(#/.0"8::/('B75(<$'(*,(/&8'5(<'$C(#2&(68#&($<(8..:0"8#0$7(876
1'87#5(#$(#2&(.8#&7#&&(S#2&('012#(#$(&Z":B6&($#2&'5(<'$C(C8T071+(B5071+($<<&'071(<$'(58:&+($'(5&::071U
#2&( .8#&7#&6( 07>&7#0$7( 07( #2&( m70#&6( K#8#&5( $'( S0C.$'#071U( #2&( 07>&7#0$7( 07#$( #2&( ( m70#&6( K#8#&5?
-B''&7#:/+( #2&( 48#&7#( !<<0"&( '&"&0>&5( 8%$B#( *,,+,,,( .8#&7#( 8..:0"8#0$75( .&'( /&8'+( 8( :8'1&( 7BC%&'
"$C071(<'$C(&D"$CC&'"&(>&7#B'&5?

M( .$550%:&( 6$;7506&( $<( .8#&7#071( 8( .'$6B"#( $'( .'$"&55( 05( #28#( #2&( 07>&7#0$7( CB5#( %&( <B::/
605":$5&6(07(#2&(.8#&7#(8..:0"8#0$7(876(5B"2(07<$'C8#0$7(%&"$C&5(.B%:0"(0<(#2&(8..:0"8#0$7(05(1'87#&6?
@2&( 8..:0"8#0$7( CB5#( 07":B6&( &>&'/#2071( '&AB0'&6( <$'( S5$C&$7&( 5T0::&6( 07( #2&( 8"#U( #$( .'8"#0"&( #2&
07>&7#0$7?((-$75&AB&7#:/+(0#(05(.$550%:&(#28#(8("$C.&#0#$'("$B:6('&>0&;(#2&(.8#&7#(876(%&(5#0CB:8#&6
%/(0#(#$(8(7&;(06&8(;20"2(%&"$C&5(#2&(5$B'"&($<(8(7&;(.'$6B"#(;20"2(6$&5(7$#(>0$:8#&(#2&(.8#&7#?

Strategy 2: New Product Introductions

Y7()WEE+(-8::8;8/(\$:<(%'$B12#(87(077$>8#0$7(#$( C8'T&#+(#2&(K*=*(;$$65?( ( Y#( <$::$;&6( #205

#2'&&(/&8'5(:8#&'(;0#2(#2&(J01(J&'#28(:07&_(<$B'(/&8'5(8<#&'(#28#(;0#2(\'&8#(J01(J&'#285_(876(<078::/+(#;$
/&8'5( 8<#&'( #28#( #2&( J011&5#( J01( J&'#28( @0#870BC( c'0>&'?( ( @2B5+( #2&( #&"27$:$1/( ;&7#( #2'$B12( <$B'
1&7&'8#0$75(07(8(6&"86&(85(-8::8;8/(5$B12#(#$(5#8/(8(5#&.(82&86($<("$C.&#0#$'5(;2$(;&'&(07#'$6B"071
#2&0'($;7(.'$6B"#5(80C&6(8#(#2&(2012D.&'<$'C87"&P.'&C0BCD.'0"&(5&1C&7#(6&>&:$.&6(%/(-8::8;8/?

@2&( :&71#2( $<( #2&( #/.0"8:( .'$6B"#( :0<&( "/":&( 285( 1&7&'8::/( 6&"'&85&6( $>&'( #0C&+( &5.&"08::/( 07
#&"27$:$1/D07#&750>&(076B5#'0&5?((9$'(&Z8C.:&+(8(.8'#0"B:8'(C$6&:($<(.&'5$78:("$C.B#&'(7$;(#/.0"8::/
285( $7:/( 8( NDG( C$7#2( #0C&( $7( #2&( C8'T&#( %&<$'&( 0#( 05( '&.:8"&6( ;0#2( 8( 2012&'D.&'<$'C071( $'( :$;&'D
.'0"&6(0#&C?((M(T&/(#$(5B5#807071(#2&(>8:B&("'&8#0$7P>8:B&("8.#B'&(.'$"&55(07(5B"2(87(&7>0'$7C&7#(05
87(&<<0"0&7#(7&;(.'$6B"#(6&>&:$.C&7#(.'$"&55?((M7(&<<0"0&7#(.'$"&55(285(#;$(T&/("28'8"#&'05#0"5O

)? KB.&'0$'(5.&&6(#$(C8'T&#

*? L8781&C&7#($<(#2&("8770%8:0f8#0$7(.2&7$C&7$7?

=8>071(8(.'$"&55(;20"2(/0&:65(5B.&'0$'(5.&&6(#$(C8'T&#(/0&:65(#;$(%&7&<0#5(#$(8(<0'C?((90'5#+
0#5(.'$6B"#5(&C%$6/(#2&(:8#&5#(#&"27$:$1/?(K&"$76+(07(87(&7>0'$7C&7#(;2&'&("$75BC&'(.'0$'0#0&5(8'&
&>$:>071+( #2&'&( 05( :&55( #0C&( :81( %&#;&&7( %&1077071( .'$6B"#( 6&>&:$.C&7#( %85&6( $7( $%5&'>&6( 876
.'&60"#&6("B5#$C&'(.'0$'0#0&5(876(1&##071(8(.'$6B"#(#$(C8'T&#?((@2B5+(#2&($<<&'071(;2&7(0#( S20#5( #2&
C8'T&#U(05(C$'&(:0T&:/(#$(%&(07(#B7&(;0#2(C8'T&#(;87#5?

-8770%8:0f8#0$7(05(8(T&/(.2&7$C&7$7(#$(C8781&(507"&(1&7&'8::/($7&(;0::(%&($%5$:&#071($7&[5
$;7(.'$6B"#5?((L"\'8#2)G(]B61&6("8770%8:0f8#0$7(#$(%&($7&( $<(#2&(C$5#(.$$':/(C8781&6(85.&"#5($<
.'$6B"#( 6&>&:$.C&7#( 07( 2012D#&"27$:$1/( 50#B8#0$75+( >0f?( S-8770%8:0f8#0$7( 05( .&'28.5( #2&( C$5#
C05B76&'5#$$6($'(C$'&($>&':$$T&6(.'$6B"#(5#'8#&1/(07(2012D#&"27$:$1/("$C.870&5?U

@2&(T&/(05(#$(<076(#2&('012#(#0C071+(0?&?+(8"20&>071(#2&('012#(%8:87"&(%&#;&&7(7$#("8770%8:0f071
$7&[5( $;7(.'$6B"#5(#$$(&8':/(876(7$#(;80#071(5$(:$71(#28#(8("$C.&#0#$'[5(:07&(#8T&5(%B507&55( 8;8/?
@2&("8770%8:0f8#0$7(055B&(05(.8'#0"B:8':/(50170<0"87#(;2&7(#2&(&"$7$C0"5($<(#2&(7&;(.'$6B"#(8'&(7$#(85
<8>$'8%:&(#$(#2&(<0'C(85(#2&(&8':0&'(1&7&'8#0$75?

9$'(&Z8C.:&+(m70#&6(M0':07&5(;85(#2&(:&86071(S<B::D5&'>0"&U(80':07&(07(#2&(m70#&6(K#8#&5?((!>&'
#0C&+(#2&(.'0"&D$'0&7#&6(:&05B'&(5&1C&7#(%&"8C&(C$'&(50170<0"87#(85(&>06&7"&6(%/(#2&(528'&(1807&6(%/
:$;D.'0"&P7$D<'0::5(5B..:0&'5(5B"2(85(K$B#2;&5#?((m70#&6(6&%8#&6(#2&(#0C071($<(&7#&'071(#205(5&1C&7#
;0#2( 0#5( $;7( :$;D<'0::5( 5&'>0"&( ;20"2( ;$B:6( /0&:6( :$;&'( C8'1075?( ( M( T&/( AB&5#0$7( ;85( 2$;( C87/

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
)N(m?K?(48#&7#(876(@'86&C8'T($<<0"&(;&%50#&+(;;;?B5.#$?1$>?
)G(K&&(L"\'8#2+($.?("0#?+(.?()HI?

8
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 Sustaining Value 501-045

.&$.:&(;2$(;$B:6(28>&($#2&';05&(<:$;7(;0#2(#2&(S<B::D5&'>0"&U(m70#&6(;$B:6(7$;(S#'86&D6$;7U(#$
#2&( S7$D<'0::5U( m70#&6?( ( M( 50C.:&( '&.'&5&7#8#0$7( $<( #2&( T076( $<( &"$7$C0"( 878:/505( #$( %&( 6$7&( 07
6&"06071( ;2&#2&'( $'( 7$#( #$( $<<&'( #2&( S7$D<'0::5U( 5&'>0"&( 05( 85( <$::$;5?( 90'5#+( &5#0C8#&( #2&( 58:&5( 876
C8'1075(;20"2(;$B:6($""B'(0<(#2&(7&;(7$D<'0::5(5&'>0"&(;&'&(7$#(07#'$6B"&6?

i&#O

<((n((.'&60"#&6(B70#(58:&5($<(<B::(5&'>0"&(0<(S7$(<'0::5U(05(7$#(07#'$6B"&6?

L((n(.&'(B70#(C8'107(<$'(#2&(S<B::D5&'>0"&U(.'$6B"#?

Q$;(&5#0C8#&O

7((n((.'&60"#&6(B70#(58:&5($<(8(S7$D<'0::5U(5&'>0"&(0<(07#'$6B"&6

i((n((.&'(B70#(C8'107(<$'(#2&(S7$D<'0::5U(.'$6B"#?

-((n((`($<(S7$D<'0::5U(58:&5(6&'0>&6(<'$C("8770%8:0f071(<B::D5&'>0"&(58:&5?

Y7#'$6B"071(#2&(7$D<'0::5(5&'>0"&(05(.'$<0#8%:&($7:/(0<O

M * f ≤ M * [f - C
! *n ]+ L
! *n
$#" full margin
margin if service from
"no frills" units no
not introduced cannibaliz ed frills
by no
frills

@2&(:&<#D2876(506&($<(#2&(07&AB8:0#/(05(#2&(&Z.&"#&6(.'$<0#(0<(7$(<'0::5(05(7$#(07#'$6B"&6?(@2&('012#D2876
506&(05(#2&(86]B5#&6(.'$<0#(<$'(<B::(5&'>0"&+(#8T071(07#$(8""$B7#(#2&(-o7(B70#5($<(>8:B&5(:$5#(#$(7$(<'0::5+
.:B5( #2&( .'$<0#( <'$C( 7$( <'0::5?( ( V@205( 855BC&5( 7$( <0Z&6( "$5#( 07( 07#'$6B"071( #2&( 7$D<'0::5( 5&'>0"&X?
K0C.:0</071(#2&(07&AB8:0#/(8(%0#+(;&(5&&(#28#(07#'$6B"071(7$(<'0::5(05(.'$<0#8%:&(0<O

L
C≤
M

K$+(0<(-(V#2&('8#&($<("8770%8:0f8#0$7X(05(:$;+(C&87071(#28#(8:C$5#(8::(#2&(58:&5($<(#2&(07#'$6B"&6(S7$D
<'0::5U( .'$6B"#( '&.'&5&7#( 07"'&C&7#8:( %B507&55( #$( #2&( <0'C( '8#2&'( #287( "8770%8:0f8#0$7( $<( #2&( S<B::D
5&'>0"&U( 0#&C+( #2&( 7$D<'0::5( C8'107+( i+( "87( %&( 8( 5C8::( '&:8#0>&( #$( #2&( <B::D5&'>0"&( C8'107+( L?( M5( #2&
&5#0C8#&($<(-(07"'&85&5+(#2&(605.8'0#/(%&#;&&7(S7$D<'0::5U(876(S<B::D5&'>0"&U(C8'1075(285(#$(%&(:&55(0<
S7$(<'0::5U(05(#$(%&(&"$7$C0"8::/(]B5#0<0&6?((@205(05(]B5#(8(50C.:0<0&6(.'&5&7#8#0$7(#$(52$;(#2&(78#B'&($<
#2&("$7506&'8#0$75?((Y7('&8:0#/+(#2&(<0Z&6("$5#5($<(07#'$6B"071(7$(<'0::5(7&&6(#$(%&("$7506&'&6(85(;&::(85
#2&(.$550%0:0#/($<("2871071(#2&(<B::D5&'>0"&(.'0"&(V876("$75&AB&7#:/(LX(0<(7$(<'0::5(05(07#'$6B"&6+(876
:$71D#&'C("$C.&#0#0>&(0C.8"#5?

@2&( &"$7$C0"( 0C.8"#( $<( 5B""&550>&( 1&7&'8#0$75( 7&&6( 7$#( %&( 7&18#0>&?( ( 9$'( &Z8C.:&+
5B""&550>&( 1&7&'8#0$75( $<( -8::8;8/( ;$$65( C8/( ;&::( 28>&( C&87#( 07"'&85071( '8#2&'( #287( 6&"'&85071
B70#(C8'1075(#$(#2&(<0'C?((=&'&+("8770%8:0f8#0$7(05(7$#(8("$C.&::071(055B&?((@2&(6'0>&(05(#$(5#8/(8(5#&.
82&86($<(#2&("$C.&#0#0$7(07(6&:0>&'071("B5#$C&'(>8:B&?((Y7(#205(6'0>&+(#&"27$:$1/(5$C&#0C&5('&8"2&5(8
78#B'8:( :0C0#( 876( #2&( C8]$'( $..$'#B70#0&5( <$'( 6&:0>&'071( 5B.&'0$'( >8:B&( #$( "B5#$C&'5( :0&5( 7$#( 07( #2&
.'$6B"#( 0#5&:<( %B#( 07( #2&( S8B1C&7#&6( .'$6B"#+U( 0?&?+( 85.&"#5( 5B"2( 85( 6&:0>&'/+( ;8''87#/+( 855B'87"&
;20"2( 5B''$B76( 8( .'$6B"#?( 9$'( &Z8C.:&+( ;0#2( &>&'/$7&( %850"8::/( 1&##071( "$C.B#&'( "20.5( <'$C( #2&
58C&(5$B'"&5+(2$;("87(8(4-(C87B<8"#B'&'(%&("$7#07B8::/(60<<&'&7#08#&6(<'$C("$C.&#0#$'5($>&'(#0C&g
c&::(<$B76(8(;8/R0#5(%B0:6D#$D$'6&'(5/5#&C(8::$;071("B5#$C(6&5017($<(4-5(876(AB0"T(6&:0>&'/?((c&::
5&"B'&6(.8#&7#5($7(0#5(.'$"&55(#$(.'$#&"#(#205(86>87#81&?

9
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.
 501-045 Sustaining Value

Strategy 3: Brand Equity

M5(7$#&6(%/(k&::&'+)F(%'876(&AB0#/(C8T&5(#2&(<0'C(S:&55(>B:7&'8%:&(#$("$C.&#0#0>&(C8'T&#071
8"#0$75?U((J'876(&AB0#/(50178:5(8(#0&(%&#;&&7(#2&(.'$6B"#P"$C.87/(876(#2&("$75BC&'?((k&::&'[5("2$0"&
$<(;$'65(05(0C.$'#87#R%'876(&AB0#/(C8T&5(#2&(<0'C(7$#(S07>B:7&'8%:&U(%B#($7:/(S:&55(>B:7&'8%:&?U
@2B5+(2&(05(07("$7"&'#(;0#2(-8::8;8/(\$:<[5(>0&;(85(5#8#&6(07(#2&("85&(5#B6/+(#28#(%'876(05(0C.$'#87#
%B#(S85(5$$7(85(8(C87B<8"#B'&'("$C&5($B#( ;0#2(8( 1$:<( ":B%( #28#[5( %&##&'( #287( $B'5+( #2&( %'876( ;$7[#
58>&(B5R0#(;0::($7:/(10>&(B5(5$C&(#0C&(#$('&8"#?U((K#0::+(%'876(&AB0#/(05(8(<$B768#0$7($7(;20"2(&<<$'#5
#$(5#8/(07(#B7&(;0#2("$75BC&'5[(;87#5(%&##&'(#287("$C.&#0#$'5("87(%&(%B0:#?

Y7( 5BCC8'/+( #2&( 8%0:0#/( #$( "'&8#&( >8:B&( 8#( 8( 10>&7( C$C&7#( 07( #0C&( 05( 7$#( #2&( %8505( $<( 8
%B507&55?( ( @2&( "$75BC&'( S-U( 78#B'8::/( "2871&5( $>&'( #0C&R7$#( 6&:0%&'8#&:/( #$( 6&5#'$/( #2&( >8:B&( 8
<0'C("'&8#&6(%B#(]B5#(78#B'8::/?((@2&("$C.&#0#$'(S-U(05(C$'&(6&5#'B"#0>&:/($'0&7#&6?((Y7(8("$C.&#0#0>&
%8##:&+(#2&(>8:B&(85"&750$7($<($7&(<0'C(07&>0#8%:/(C&875(#2&(6&5#'B"#0$7($<(87$#2&'[5( >8:B&(.$50#0$7?
@2B5+( 07( 5B5#807071( >8:B&+( #2&'&( 8'&( #2'&&( "$C.:&C&7#8'/( 8>&7B&5( #$( ;$'T?( ( 90'5#+( &75B'&( #2&
.'$.'0&#8'/( 78#B'&( $<( /$B'( >8:B&( "'&8#0$7( .'$"&55( 85( :$71( 85( .$550%:&( #2'$B12( "8'&<B:( 1B8'6071( $<
%B507&55(.'$"&55&5(876( .'$6B"#5+( &C.:$/071( #'86&( 5&"'&#5( 876( .8#&7#5( 85( 8..'$.'08#&?( ( 90'C5( #$68/
7&&6( 87( 07#&::&"#B8:( .'$.&'#/( 5#'8#&1/?( ( K&"$76+( %B0:6( #2&( %'876( #$( T&&.( "B5#$C&'( '&:8#0$75( 5#'$71?
@20'6+( "$7#07B8::/( %&( $7( 8( .8#2( $<( .'$6B"#( 0C.'$>&C&7#+( 7$#( <&8'071( %B#( B76&'5#876071( #2&
&"$7$C0"5($<($%5$:&#071(/$B'($;7(.'$6B"#5?

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
)F(k?(k&::&'+(Strategic Brand Management(Vd71:&;$$6(-:0<<5+(Q?h?O((4'&7#0"&D=8::+()WWEX?

10
This document is authorized for use only in Dr.Ashita Aggarwal's 446-8-EMP72:Marketing Operation at S P Jain Inst of Mgmt and Res (SPJIMR) from Feb 2020 to Aug 2020.