Hindustan Unilever and the Prenatal Care Market “Giving birth should be your greatest achievement not your greatest fear.”1 —Jane Fraser Aarti, a graduate from a
leading business school in India, was in the first trimester of her first pregnancy. She was abreast of the latest developments in the prenatal care market through
health-related articles and blogs. She noticed that the number of Indian women drawn toward maternity care products had swelled in 2014. She wanted to buy skin care
products during her pregnancy, but she found scant and scattered product lines with poorly defined brand strength in the market. She wondered if Hindustan Unilever were
to enter the prenatal care segment with its brand Dove if it would succeed because no other brand had a strong identity as a “woman’s brand.” As more and more women
began working, had higher disposable incomes, and became health conscious with the desire to stay fit and beautiful during and after pregnancy, the number of Indian
women looking for maternity products had increased. Expectant mothers bought over-the-counter (OTC) products for pregnancy-related hair and skin problems. With a
fertility rate of 2.47 births per woman worldwide and 2.51 births per woman in India,2 along with evolving customer preferences, the maternity care market in India
appeared as a lucrative venture. There was no dearth of pharmaceutical products for pregnancy care. Several private labels in the cosmetic category were available, but
no cosmetic company had yet established a unique prenatal brand that offered focused products to address each of the personal care needs of expectant mothers. Dove, a
master brand from Unilever, had developed a worldwide reputation as a nourishing and caring brand for women. Dove’s success was driven by brand extensions and product
innovations. Aarti wondered if Hindustan Unilever were to enter the maternity care cosmetic segment as part of its brand expansion plan for Dove, would it benefit from
a first-mover advantage by catering to the growing demand for maternity care cosmetic products among Indian women? Hindustan Unilever With close to 16,000 employees,
1,500 managers, and a total coverage area of over 6.4 million outlets, Hindustan Unilever Limited (HUL) was a behemoth in the fast-moving consumer goods industry
(FMCG) in India.3 Its history traced to the summer of 1888, when the first crates of Sunlight soap bars, stamped with “Made in England by Lever Brothers,” entered India
through a harbor in Kolkata.4 HUL’s market capitalization stood at INRi,5 1305.51 billion in 2013–2014. It reported annual revenues of INR 280.19
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billion and profits of INR 38.67 billion for the financial year 2013–2014, at a year-on-year growth rate of 8.55% and 1.86% respectively (see Exhibit 1 for selected
financials of HUL).6 Unilever set up its first Indian subsidiary, called Hindustan Vanaspati Manufacturing Company, in 1931. This was followed by Lever Brothers India
Limited in 1933 and United Traders Limited in 1935. In 1956, the three companies merged, forming Hindustan Lever Limited. By then, products such as Lifebuoy soap
(launched in 1895), Brooke Bond Red Label tea (launched in 1903), Lux flakes (launched in 1905), and Vim scouring powder (launched in 1913) had already been introduced
to the Indian market. By the turn of the century, brands such as Lakmé, Kwality, Milkfood, Ponds India Limited, and Brooke Bond Label were either acquired or had
merged with Hindustan Lever Limited, establishing the company as a well-recognized brand throughout India.7 The company was renamed to Hindustan Unilever Limited (HUL)
in 2007.8 By fiscal year 2012–2013, HUL was a market leader in categories such as laundry, soaps, hair care, home care, and skin care, while holding second-place
positions in categories such as tea, oral care, and deodorants.9 Eighteen of HUL’s brands were featured on the Nielsen Corporation’s list of top 100 most trusted
brands in 2012.10 These included the likes of Clinic Plus (ranked 4th), Lifebuoy (ranked 10th), Rin (ranked 12th), Surf Excel (ranked 13th), Dove (ranked 37th), and
Lakmé (ranked 81st).11 Exhibit 1 Financials of Hindustan Unilever (in INR billion)
Source: Hindustan Unilever Limited. Annual Report 2013–14: Making Sustainable Living Commonplace. Mumbai: Hindustan Unilever Limited, 2014. Web. 25 Jul.2014.
billion in 2010, when each of HUL’s core brands provided sales of USD $1 billion or more.12 The Dove brand catered to an umbrella of products under four broad
categories: bar and body wash, hair care, skin care lotions, and deodorants. In 2012, a globally accepted BrandZTM model developed by WPP ranked Dove as the fourth
most valuable brand in the personal care category, with an estimated valuation of USD $4.7 billion.13 In 2014, BrandZTM estimated the brand value of Dove at USD $4.8
billion, while ranking it as the eighth most valuable global brand in the personal care category.14 More than 50 years ago, Lever Brothers introduced Dove, under the
Unilever umbrella, as a beauty bar offering a revolutionary new formula containing “one-quarter cleansing cream.”15 The new brand of soap was marketed as a clinically
proven milder soap for dry and sensitive skin, going beyond the stereotype that soaps simply enhanced beauty. Since then, Dove has become the number one cleansing
brand in the world, with taglines such as “Suddenly soap is old-fashioned!” and “Dove creams your skin while you wash.”16 In the 1970s, Dove’s tagline changed from
“one-quarter cleansing cream” to “one-quarter moisturizing cream,” to cater to women’s needs for lotions.17 It ran print ads with messages such as “Dermatologists have
put something unusually strong in this skin cleanser. Their trust.”18 When David Ogilvy started working with Dove, he relentlessly searched for a point of product
differentiation.19
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In 1991, Dove began its global rollout, entering 55 new countries by 1994. The year 1993 was particularly important because of the launch of Dove brands in the Indian
market. Dove was considered one of HUL’s fastest-growing brands because it had outlasted a similar product, Camay, along with successful product extensions into hair
and skin care lines.20 In 1995, Dove significantly stepped out of the cleansing bar category with the US launch of moisturizing body wash, which became an integral part
of Dove’s sales in many expansion markets. Other product categories soon followed, with deodorants in 1997, body lotions in 1998, and facial cleansers in 1999. Despite
Dove’s geographic expansion and product diversification, it was facing commercial stagnation with its Dove bars declining in the United States at 1.9%.21 The brand
faced a life-threatening loss of momentum with the risk of product delisting from major retailers, including Wal-Mart.22 The problem was identified as a lack of an
emotional connection between users and Dove, coupled with the loss of relevancy to consumers. Prior to 2004, brand communications largely relied on 1950s-style
testimonials and advertisements that highlighted the functional benefits of one-quarter moisturizing cream and its nondrying quality. Meanwhile, competitors were
gaining significant ground by promising unattainable images to consumers by showcasing sexier and glamorous models in their advertisements. Dove management realized
that the brand had the potential to truly connect with people and that the overused and dated claim of onequarter moisturizing cream alone was not going to elevate
brand recognition to a higher level of consumer consciousness in current market conditions. The Real Beauty Campaign Dove’s first step toward the Real Beauty campaign
began with the Real Curves campaign for Dove firming lotion. This campaign used size-8 women from London in a photo shoot to flaunt their Dove-firm curves, which
challenged conventional premises of beauty in a modern and impactful way. This unconventional approach to marketing led to print and TV ads centered on women of all
sizes. The Real Curves campaign led to the campaign for Real Beauty, which aimed at challenging and questioning society’s set definitions of beauty by provoking debate
regarding the existing contradictions in the beauty industry and the status quo mind-set of society at large.23 Alessandro Manfredi, vice president of Dove Global
Masterbrand, led the global rollout of the Dove campaign for Real Beauty. “After many soul-searching team sessions, the question that kept coming back was ‘What is
Dove’s philosophy on beauty?’” said Manfredi, when asked what sparked the campaign for Real Beauty. He went on to add that the Global Brand Team delved deeper into the
question of beauty and discovered that only 2% of women were comfortable admitting that they were beautiful.24 Working with psychologists, Unilever published the first
Dove white paper, “The Real Truth about Beauty Study: A Global Report,” to further the international competencies of women’s beauty and well-being, in addition to the
relationship between the two factors. Dove’s mission in commissioning this white paper was to explore empirically what beauty meant to women and was based upon
quantitative data collected from an international audience of 3,200 women, ages 18 to 64. The results revealed that after women read a magazine targeting women
audiences, 72% felt worse about themselves.25 Dove realized that stereotypical images in the media were destroying the self-esteem of women. Dove decided to defy
industry convention and turn around its marketing strategy through all of its brand communications and imagery. The Dove’s Big Ideal (an Ogilvy-bespoke tool)ii
encouraged “more women to feel more beautiful every day.”26 The campaign supported the Dove mission “to make women feel more beautiful every day by challenging today’s
stereotypical view of beauty and inspiring women to take great care of themselves.”27 Dove management believed that if the brand could make women feel more beautiful
by encouraging greater personal care every day, then the customer’s emotional connection with Dove products could be revived
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with a positive impact on women’s self-esteem. Dove approached its marketing program in a profound way by embracing women of all shapes, sizes, ages, and races by
projecting a more accessible, diverse, and realistic portrayal of beauty. Moreover, Dove strayed from using models and started using “everyday” women in advertising
efforts. This supported its ideal of an honest portrayal of beauty, which further drove the brand affinity and category differentiation. Having successfully grown from
a beauty bar to a global master brand, Dove optimized women’s beauty, all while redefining the parameters of beauty. Dove maintained its core messaging, across the
changing cultural landscape, offering to women the confidence to let their individuality shine through. By doing this, the Dove brand continued to make powerful
contributions to women, their beauty, and, most importantly, their selfesteem. Evolving Consumer Choices in the Indian Prenatal Market The Indian maternity care
industry had seen significant growth since 2008, expanding at a compound annual growth rate (CAGR) of 16% during 2008–2013.28 With a rise in dual-income households, a
decrease in birth rates, an increase in the average pregnancy age, rising disposable incomes, and a consciousness for fitness, the prenatal market was fast becoming a
highly lucrative segment for brands and marketers. Moreover, the nine months of pregnancy brought about changes that required alterations in consumption and lifestyle
habits, which added to the attractiveness of entering the maternity market. Several factors led to increasing demands for maternity care products, which were classified
under two trend types: market and consumer. Market Trends in India Willingness to Spend Birth rates had an indirect impact on the demand for prenatal care products.
Across the world, birth rates were falling29 due to an increase in urbanization and nuclear families, better awareness and availability of birth control, a tendency
among couples to wait longer before starting a family, and more women pursuing higher education with more career-centric goals. However, with fewer births per family,
parents-to-be were willing to spend more per pregnancy than before. The willingness to spend more per pregnancy offered a significant incentive for prenatal care
product development. India had a birth rate of approximately 21 births per 1,000 people in the year 2012.30 (Refer to Exhibit 2.) Exhibit 2 Factors Influencing Indian
Market Trends
Source: “Parents-in-Waiting: Global Perinatal Market Trends.” Euromonitor International, 4 Dec. 2013. Web. 10 Jun. 2014. Disposable Income With improved economic
conditions, consumers began spending more and also considered starting a family. Because adding a new member to the family equated to a major financial investment,
Indian parents often planned financially before pregnancy. The disposable incomes in emerging markets had increased significantly, with India’s average annual disposable
income per household in 2011 up by 47.7% from 2007.31 (Refer to Exhibit 2.)
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Workforce Provisions With a rise in dual-income households worldwide, the decision of having a baby was largely influenced by the maternity provisions provided by
companies. As per the International Labor Organization, 178 countries across the world had provisions for paid leaves of absence for expectant mothers.32 In India,
laws entitled women to maternity benefits for six weeks prior to the delivery date. In the IT and consulting sector, which had a higher proportion of female workforce
than the overall workforce, provisions for working from home for a certain period were made available to employees. However, these provisions were available only to
women who were a part of the organized workforce in the country. Consumer Trends in India Women changed consumption patterns and lifestyle choices during pregnancy.
Some common consumer trends observed in India and throughout the world were: Information Boom With easy accessibility to the Internet, online information regarding
pregnancy, maternity, and child care products was just a click away. Parenting platforms were a source of information for expectant mothers. BabyCenter.com, owned by
Johnson & Johnson, was one of the most popular parenting platforms. Similar parenting platforms across the world were gaining momentum and becoming more popular
resources for expectant parents. The world leader in online resources for the maternity industry, BabyTree,33 reached 80% of expectant mothers in China through its
website.34 Mumsnet from the United Kingdom, too, provided information to expecting parents and encouraged the exchange of information. This increasing trend to seek
advice, network with other parents-to-be, and shop online opened an opportunity for marketers to better understand customers’ evolving needs. Pregnancy Side Effects
and Over-the-Counter Products Although women avoided extra medications during pregnancy, they tended to make OTC purchases for stretch marks, nausea, heartburn, and
other side effects of pregnancy. Morning sickness affected 50% to 80% of pregnant women. Although many women preferred natural remedies for morning sickness, some
preferred OTC medicines such as antacids. Acetaminophen, or paracetamol, was the only pain reliever known not to harm expectant mothers and unborn children. Overall,
the heartburn and indigestion solution market grew 23% between 2007 and 2012.35 As expectant mothers were very sensitive to health issues, the demand for personal care
products to address maternity skin care issues had risen. Catering to this need, many companies offered maternity skin care products. Palmer, Probiotic Action, and
Maternitique.com offered such products worldwide. Mothercare, a British retailer specializing in the maternity industry, had a range of products, known as “It’s Your
Body,” for pregnant women, including stretch mark cream, bath milk, and nipple cream. In the United States, Pretty Mommies was a brand with maternity skin care
products that were chemically suited for the sensitive skin of expectant mothers. Celebrity Influence Pregnancy hormones and weight gain led women to become highly
conscious of their bodies and increase their determination to stay healthy and in shape. With many celebrities flaunting svelte figures, there was an increase in body
consciousness among women. Because of easy accessibility to information from the Internet and the growth of social media, celebrity moms were keenly followed by fans,
with pregnant celebrities guiding fashion trends and determining what cosmetic products expectant mothers should use. Aishwarya Rai, an Indian film actress and model,
was subjected to a lot of scrutiny by the media for her
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post-pregnancy weight.36 The Duchess of Cambridge’s pregnancy fashion choices left expectant parents in awe; the constant applaud for her maternity attire led to a
major boost in the pregnancy and baby markets. Gifting Rituals Pregnancy was a joyous occasion for not only the parents-to-be, but for family members and friends, as
well. The counterpart of a baby shower in India, godh bharai, was an occasion where family and friends gathered to bless the expectant mother, showering her with gifts
for her and the baby. Marketers in the maternity and child care industries could potentially tap into this pregnancy tradition and introduce expectant mothers to
maternity care products through gift baskets. Pregnancy-Related Hair and Skin Problems The overwhelming happiness of pregnancy was accompanied by nine months of
physical and hormonal changes. The nine months, divided into three trimesters, caused a variety of skin and hair changes in the female body. Hormonal changes and an
excessive flow of blood caused skin to become more sensitive and hair to grow faster. Most of these body changes, as discussed below, started to set in by the end of
the first trimester. Chloasma Chloasma, also known as the mask of pregnancy, was the sudden pigmentation caused by the increased production of melanin in the body,
which was visible as patches over cheeks, the forehead, and the neck.37 These patches darkened post-exposure to sunrays.38 Linea Nigra Linea nigra was a dark vertical
line that developed across the belly, usually visible around the second trimester.39 It was caused by pigmentation around stretched abdominal muscles, where folic acid
supplements were known to help mitigate its damages.40 Pimples and Acne Blemishes were one of the many results of excess oils getting trapped in pores.41 Pimples and
acne were caused by increased sebum secretion because of the hormonal changes of pregnancy and the blockage of pores, with oil-free moisturizers and glycerin-based
face cleansers recommended for use to mitigate these side effects.42 Stretch Marks As a form of scarring on the skin, stretch marks had an off-color hue caused largely
by hormonal changes. Stretch marks were a common problem that affected around 90% of pregnant women. These were highly noticeable by the third trimester, but in many
cases marks were visible as soon as the bump started to grow.43 Eczema Eczema was the inflammation of skin44 where itchiness developed around the breasts and belly
during pregnancy, with palms and feet becoming itchy, as well. The sensitive skin was caused by a rise in estrogen levels.45 A cold compress could be used to soothe
the itch, along with the application of skin-soothing oil to moisturize the skin and help decrease itchiness.46
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Pronounced Hair Growth Fuller and thicker hair during pregnancy occurred because of higher levels of estrogen production and a decrease in hair fall. Regular washings
of the skin with mild soap were recommended to avoid rashes and itchiness across the body, while the use of mild shampoos that did not damage the scalp was recommended
for hair maintenance. The Indian Maternity Market The maternity care market in India was majorly concentrated in the giant retail stores Mom&Me and Mothercare, wherein
the market share of Mothercare was less than Mom&Me in terms of retail store presence in 2012.47 Besides the retail outlets, the online channel had a tremendous
assortment of maternity care products specially focused toward the pregnancy-related needs of expectant mothers. E-commerce websites were able to procure a wide
variety of maternity personal care products for various national and international brands (see Exhibit 3 for different competitive products). The existing market did
not specifically cater to the multiple pregnancy-related problems that an expectant mother faced during the prenatal period. No single brand established a unique
prenatal market that catered to all the personal care needs of mothers-to-be by offering focused products to address each pregnancy need separately. The Road Ahead
Considering the growth of the prenatal market in India, continuously evolving market trends, and consumer preferences, Aarti wondered if Hindustan Unilever should
enter the prenatal care segment with its Dove brand. She thought about the different questions that HUL and Dove had to tackle at both strategic and tactical levels.
Should HUL enter the prenatal cosmetic market? If yes, she wondered if it should enter this market with Dove or should it launch a new brand focused purely on the
prenatal cosmetic market? Exhibit 3 List of Competitive Products Category Company Product Tummy/Stretch Marks Palmer’s Cocoa Butter Massage Lotion for Stretch Marks
Farlin Corporation Lotion Anti-Stretch Mark Fairhaven Health LLC Dream Belly Stretch Mark Butter Ocea Marine Cosmetics Thalgo Flat Stomach, Refining, Sculpting Pigeon
India Pvt. Ltd. Body and Stretch Mark Cream Bottega di Lungavita Vita Age Mamma Stretch Mark Cream Omved Lifestyle Pvt. Ltd. Anti-Stretch Belly Balm Mothercare plc
Stretch Mark Cream Full-Body Skin Care Votre Vu Body-Shaping Kit Palmer’s Cocoa Butter Skin-Firming Lotion Cocoa Butter Skin Therapy Oil Farlin Corporation Firming Leg
Relief Massage Lotion, Skin Care Mother Skin Care Firming Serum for Whole Body Mann & Schroder Sanosan Mama Mom-to-be Cream Face Cleanser Farlin Corporation Mother
Skin Care Feminine Hygiene Foam Wash Bottega Di Lungavita Mamma Intimate Cleanser
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Everteen Natural Intimate Wash Slimming/Reshaping Ocea Marine Cosmetics Thalgo Sculpt Expert Cream, Sculpting Restructuring Sattvik Organics Sattvik Organics Shape-On
Cream, AntiCellulite VLCC Healthcare Ltd. Shape Up Oil, Slimming Vedic line Slimside Slimming Shower Gel, Body Therapy Ayucare Pharmaceuticals Pvt. Ltd. Lavana Tailam
Body Shaping Breast Care Votre Vu Breast Re-Contouring Tissue Nourishment Lotion, Hypo Allergic Farlin Corporation Nursing Comfort Balm Mann & Schroder Sanosan Mama
Nipple Salve Ocea Marine Cosmetics Thalgo Bust and Décolleté, Tightening Nuby Lanolin Nipple Cream Farlin Corporation Bust Beauty Firming Lotion Lass Naturals Bosom
Blossom, Bust Firming & Enhancing Chicco Breast Elasticizing Serum VLCC Healthcare Ltd. Shape Up Bust, Firming Cream Pigeon India Pvt. Ltd. Breast Care Gel
Source: This exhibit was created and compiled by the authors. Endnotes
1 “Quotes.” Birthbuddies. Birthbuddies, n.d. Web. 10 Aug. 2014.
World Bank Group. The World Bank, n.d. Web. 10 Jul. 2014.
Unilever Limited. Hindustan Unilever Limited, 1 Jan. 2014. Web. 25 Jul. 2014.
i is “Exchange Rate: US Dollars to Indian Rupees (USD/INR).” Dollars 2 Rupee. Analysis UK Limited, n.d. Web. 17 Aug. 2014.
Hindustan Unilever Limited. Annual Report 2013–14: Making Sustainable Living Commonplace. Mumbai: Hindustan Unilever Limited, 2014. Web. 25 Jul. 2014.
Moneycontrol.com. eEighteen. com Ltd, n.d. Web. 25 Jul. 2014.
Limited Factsheet.” 10 “Most Trusted Brands 2012: List of Top 100.” The Economic Times. Times Internet Limited, 7 Nov. 2012. Web. 4 Nov. 2014.
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11 Ibid. 12 “Packaging Profile: Dove.” Euromonitor International, n.d. Web. 27 Jul. 2014.
Brand Profile.” Adbrands.net. Mind Advertising Ltd., 21 May 2013. Web. 29 Jul. 2014.
2014.” BrandZTM. Millward Brown Optimor and WPP Group, 2014. Web. 25 Jul. 2014.
Cleansing Soaps—1957 [cc].” YouTube. YouTube, 4 Nov. 2008. Web. 27 Oct. 2014.
Strategy. Brunico Communications Ltd., 1 Dec. 2007. Web. 26 Aug. 2014.
Ibid. 20 Deoras, Neha Pandey. “No Flying Start for Dove’s Elixir.” Business Standard. Business Standard Ltd., 8 Jan. 2014. Web. 2014.
Curves.’” The 2009 Arf David Ogilvy Awards, 2009. Web. 16 May 2014.
information in this paragraph came from the source: “50 Years of Dove: The Story of a Brand (1955–2005).” Ogilvy. Ogilvy and Mather Worldwide’s Intranet, n.d. Web. 10
May 2014.
Fly Higher.” Global Marketing Effectiveness. Global Marketing Effectiveness, 5 May 2008. Web. 5 Nov. 2014.
Jennifer Scott, and Heidi D’Agostino. The Real Truth about Beauty: A Global Report. Mumbai: Dove, 2004. Web.
Curves.’” The 2009 Arf David Ogilvy Awards, 2009. Web. 16 May 2014.
Women Have Curves and Show Them!” Dove. Unilever, 23 Jun. 2005. Web. 2014.
www.kenresearch.com, 14 Jan. 2014. Web. 28 May 2014.
for Paid Maternity Leave.” The Huffington Post Canada. TheHuffingtonPost.com Inc., 22 May 2012. Web. 5 Nov. 2014.
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34 PR Newswire. “China’s Babytree.Com Surpassed U.S.-Based Babycenter.Com to become World’s No. 1 Pregnancy and Parenting Website.” Ulitzer. Ulitzer Inc., 7 Apr. 2013.
Web. 24 Jun. 2014.
Web. 7 Aug. 2014.
BabyCenter. BabyCenter LLC, May 2011. Web. 10 May 2014.
The information in this paragraph was compiled using the source: ”A Bio-Oil Guide to Pregnancy Stretch Marks.” BioOil.com. Bio-Oil Professional, n.d. Web. 10 Jun.
2014.
Oct. 2013. Web. 10 Jun. 2014.
Web. 10 May 2014.
Expansion of Retail and Online Channels to Lead Future Growth.” Ken Research. www.kenresearch.com, 14 Jan. 2014. Web. 28 May 2014.
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