Description

Integrated Marketing Communications

Dec 2025 Examination

 

 

Q1. Tesla is planning to expand into a region where automotive sales are traditionally managed through third-party dealerships, and local regulations favor this model. The company’s leadership wants to maintain its direct-to-consumer approach to preserve brand control and deliver a seamless customer experience. They must navigate regulatory challenges and adapt their sales and marketing strategies to ensure compliance while upholding Tesla’s brand values and customer-centric philosophy. How should Tesla’s leadership apply the direct-to-consumer sales model to enhance customer experience and brand control while expanding into regions with strong dealership regulations? (10 Marks)

Ans 1.

Introduction

Tesla has always positioned itself differently in the automotive industry by using a direct-to-consumer (D2C) model, where customers purchase cars online or through company-owned stores without relying on traditional dealership networks. This approach gives Tesla significant control over its brand image, pricing, and customer experience. However, as Tesla plans to expand into a new region where regulations and market practices strongly favor third-party dealerships, it faces a challenging situation. On one hand, the company wants to maintain consistency with its global sales strategy and uphold its brand promise. On the other, it must navigate legal frameworks, industry resistance, and consumer

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Q2(A). A leading FMCG company is preparing to launch a new health drink in a highly competitive market. The marketing team proposes using the ‘meet the competition’ budgeting method, matching the advertising spend of its main rivals to maintain visibility. However, some executives are concerned that this approach may not reflect the company’s unique objectives or market position. The team must weigh the benefits of competitive parity against the risks of misaligned spending and missed opportunities for differentiation. Critically evaluate the decision of a leading FMCG company to adopt the ‘meet the competition’ budgeting method for its new product launch, considering the competitive landscape, internal objectives, and potential risks. What alternative budgeting approach might better align with the company’s strategic goals, and why? (5 Marks)

Ans 2a.

Introduction

When a new product enters a competitive market, budgeting for advertising and promotion becomes critical for success. The “meet the competition” method, where a company matches the spending of its rivals, is a popular approach but not always strategically sound. For an FMCG company launching a new health drink, this choice may ensure visibility but could also create risks if it ignores the firm’s unique strengths, goals, and market positioning. The decision must be evaluated carefully before implementation.

Concept and Application

Benefits of Competitive Parity

The idea of “meet the competition” budgeting is based on the assumption that similar

 

 

Q2(B). An e-commerce platform plans to run a 48-hour flash sale using messages like ‘Only 100 units left!’ and ‘Hurry, offer ends soon!’ to drive immediate purchases. While previous campaigns have boosted short-term sales, some customers have expressed skepticism about the authenticity of scarcity claims. The management team is concerned about maintaining trust while maximizing conversions. Evaluate the strategic use of scarcity and action-inducing appeals in a flash sale campaign for an e- commerce platform. Critique the ethical considerations, potential for consumer backlash, and the long-term effects on brand perception, recommending how the campaign could be structured to balance urgency with authenticity. (5 Marks)

Ans 2b.

Introduction

Scarcity appeals such as “limited stock” or “time-bound offers” are powerful marketing tools often used in e-commerce flash sales to drive urgency and immediate purchases. For a 48-hour sale, such tactics can quickly boost conversions. However, repeated or misleading use of scarcity messages may reduce credibility and harm brand trust. While effective in the short term, the company must carefully consider ethical implications, consumer perception, and long-term brand equity to avoid damaging customer