Case study

1.Title: APEX ELECTRICAL COMPANY LTD

Area of the case- expansion of business.

Facts of the case-1. Apex electrical company manufacturers and markets a wide range of electrical motors. The head office and factory are at Mumbai and the branch offices headed by a regional manager are at Delhi, kolkata and Bangalore.2.Bangalore region is for Karnataka, Tamil Nadu and Kerala. There are dealers. Normally, each dealer is given a specific area on a non-interference basis, except in large cities like Bangalore or Mysore. Company’s godown and sales force are based at Bangalore to cater to the region.3.The dealers in Karnataka deal directly with the regional office. An independent distributors at Chennai appointed dealers in Tamil nadu and kerala. These deal through him.4.The regional manager’s perceptions are:

(i) His staff maintains contact with the dealers and has good marketing data for Karnataka, but they can travel to Tamil nadu and kerela only when specifically requested by the distributor. Hence, the regional office has very little information on these 2 states.

(ii) He feels that the distributor is authoritarian, does not fully exploit the sales potential dealers complain of unfair dealings and would like to deal directly with the company.

(iii) The regional manager is trying to bring the distributor under his control. The morale of the dealers could be affected, if they realize that the company cannot the distributors.

4..the distributors had given financial help to the company in the initial stages and is an important share holder. The top management would prefer to leave at stake. Even the sales manager would have to do some tightrope waling to open a sub- office at Chennai.

(i) the declared purpose of the sub- office would be to help the distributor improve marketing in Tamil nadu , but it would also gather data.

(j) Financially the ratio of sales to per rupee expense should be at least 50. in case of the Chennai sub-office it will be rs 60lakh and rs 1.2lakh, respectively from next year. Tow sales man are to be transferred from Bangalore to Chennai.

5.Assumption(a) The observation of the regional manager are correct and objective and are

not merely to satisfy ego of exercising closer control over the distributor.

(b) The distributor has the best interests of the company in his heart; since he has had a long

(c) Financial support in the initial phase) association At the top level; .(d) The payments to the distributor are in addition to those paid to the dealers.(e) The sales manger has an open and unbiased mind.

4. Solutions- Short term solution-

1. For promotion use proper media use the cheapest media i.e. radio, News paper etc.

2. Participate in social activities programmes.

Long term solution-

1. Make available its products all over the country and all over the globe.

2. For long term promotion use TV. Internet (e-commerce) etc.

Best solution-

1. For promotion use proper media use the cheapest media i.e. radio, News paper etc.

2. Make available its products all over the country and all over the Globe.

2. Title: Quality bathing soap.

Area- Price mix

Sub-area - Price penetration

Facts of the case-

1. Navin Mehta was chemical engineer2. Navin manufactured and sold a detergent named ‘NIPPO’ and the price of which was very low3. This strategy of low price paid him success, profit gained from the detergent was used by him to develop a quality bathing soap.4. The cost price of the soap was high but still navin priced it at substantially lower Price.

Solution-Short term solution-

1. a good quality bathing soap with a unique colour and perfume combination.

2. Price should be substantially lower to be a comparable product in the market by maintaining a low profit margin.

Long term solution-

1. Do advertisement through proper mode ( i.e. through newspaper, TV., radio, internet etc.

2. Choose a proper brand ambassador to promote his product.

Best solution-1. Price should be substantially lower to be a comparable product in the market

by maintaining a low profit margin.2. Do advertisement through proper mode ( i.e. through newspaper, TV., radio,

internet etc

3. Title:- The Gillette Company.

Area of the case- Diversification and establishment of the Gillette Company.

Facts of the case-1. Gillette is known the world over its razor blades.2. Its manufacturing operations are conducted in more than 50 locations in 26

countries and their products are in over 200 countries.3. King G.Gillette & William nick son started the American razor company in

Boston in 1901 to produce Gillette razor sets. They could sell only 51 razor sets in the first year. However the news spread quickly and in the next year they sold 90,844 sets.

4. Within 4 years in 1905, Gillette established its first overseas operations.5. it concentrated on its main line & developed sales by resorting to novel ideas like

distributing free razor blade through banks & with boxes of Wrigley’s chewing gum.

6. Even during the difficult year of the depression, if sponsored major sporting events like Gillette cavalcade of sports and through world wide advertising, kept up its sales.

7. In 1948, the company did its first diversification by purchasing Toni. During the 1960’s and 1970’s the company expanded its product range by introducing right guard (deodorant), Trace II (twin lade razor), cricket (disposal lighter), Good news (disposal razor) and Eraser mate (Erasable pens). It also acquired Braun. (Electric shaves and appliances). In 1984 it even branched into dental products.

8. The strategy adopted to:(a) Identifying a product for which there was need and developing from the beginning a high quality and convincing consumers to buy quality and sophistication.

(b) The company always did considerable market research and design engineering. (c) Gillette realized the importance of exports and the need to establish it self in the world market and started it overseas operation within 4 years of commencement of business.

9. Because of this, out of the total sales of $ 4,345 million in 1990, only $ 1, 443 million were in the US. While the balance of $ 2, 912 million were sales in the overseas territories of Europe, Latin America. Asia etc.

10. Today, 32 percent of its operating income is from US and 68 percent from its overseas operations.

11. Due to diversification, taken at the right time only 36 percent of its sales come from the sales of blades and razors, while balance is from toiletry products, stationery products, appliances, dental products etc.

Problem of the case:

1. Identifying a product for which there was need and developing from the beginning a high quality and convincing consumers to buy quality and sophistication.2. Gillette realized the importance of exports and the need to establish itself in the world market and started in overseas operation.

Solution of the case-

Short term solution-1. Convincing customers to buy their products at the high price.2. It has to sell more expensive products at a higher margin of profit.3. Keep in close touch with the market demand and accordingly with the collected data

form customers make the necessary changes in their products.

Long term solution-1. Maintaining the quality of their products.

Best solution

Short term-1. Keep in close touch with the market demand and accordingly with the collected

data form customers make the necessary changes in their products.

Long term-

1. Maintaining the quality of their products.

4. Title :- Modernizing sales outlets:-

Area of the case - Personal selling .

Sub-area of the case - Relationship development.

Facts of case-

1. mr. harish panjiwani was a refugee. When he started his small grocery business about 40 years back.

2. initially, he hawked his goods door to door and soon developed a sizable number of steady customers. This was largely due to his sober temperament, reliable dealing and his amiable nature . this extrovert nature helped him develop many friends and well-wishes .

3. he expand the range of his business activities & he now owns several shops dealing in consumer durable dairy products and also has general store besides a large medical shop.

4. he feels emotionally attached to his original grocery business and continues to operate it with enthusiasm.

5. his business place has even come people of his generation to meet.6. his children are grown up and the eldest one , rajesh, has just returned from

abroad after completing management education there.7. ambitious by nature ,rajesh would like to expand his business fast. He feels that he

needs ‘professional’ in his approach.

8. in his opinion , his father’s way of dealing people is outdated. Rajesh is irritates when his father’s old friend drop in appending time talking with him. Many a times, he feels that this type of casual come together is a waste of time . he would lke to deal with them as customers only, serving them with precision & in a methodical manner.

9. he except , that his customers should appreciate this ; modern way of doing business.

10. some of the customers have anyhow, started noticing the changes in the way in which rajesh deals with them . they feel that the old ‘wormth’ of their relationship with senior panjiwani is somehow missing &tjey are now less welcome at the shops.

Problem of the case -

1. mr.harish panliwani feels emotionally attached to his original grocery business and continues to operate it with enthusiasm.

2. rajesh would like to expand his business fast.3. rajesh would like to deal with them as customers only serving them with precision

and in a methodical mannel.4. the customers feel that the old ‘wormth’ of their relationship with senior panjiwani

is somehow missing and they are now less welcome at the shops .5. rajesh feels irritated when his father’s old friends drop in at the shos and spend

time talking with him.

Solution- Short term -

1. to develop a good relationship with customers provide them a free delivery of order.

2. develop personal selling to develop a sizable number of steady customers.

Long term -1. regular follow-up with customers . so that they can visit the shop regularly.

Best solution-To develop a good relationship with customers provide them a free delivery of order.

5. Title: Nirula’s caseArea of the case: Sustenance of business development

Sub-area: Strategic management

Facts of the case:1. Delhi based nirula’s is an Indian avatar of the fast food restaurant chain.2. The company, nirula’s corner house ltd, has been receiving attention in the media.

Though of medium size, it is one of the only serious restaurant chains in India. Its management insists that it is not loosing sleep over the threat of international competition.

3. At least, part of the answer lies in nirula’s steady attention to quality even though it has not faced really serious competition.

4. Nirula’s processing capacity is substantial and had it so wanted it could have entered business beyond restaurants. But here too the company is concerned that it cannot manage the way in which its products are stored and distributed; the final product may not be in good condition, damaging its brand name. That is why it has stayed away fro branding ice-cream and even bread for general consumption. All it sells in shelves, beyond its own are items like chocolates, sauces, mustered and chili sauce which have longer life and greater keeping quality.

5. part of the reason for nirula’s apparent reluctance to be drawn into comparison with the incoming chains is its unexpected argument that although consumers refer to its offerings as fast food, it is not a fast food chain in the real sense of the term competition says samir kuchkreja, technical advisor, is a home cooked meal, in a dhabha, is a restaurant in a potential customers colony and is also a restaurant in a five star hotel.

6. Inspite of nirula’s reputation for fast service it is interesting to note just how different its view of business is compared to say that of McDonald’s.

7. Nirula’s on the other hand, has different reason for being in existence. It likes to call its outlets, family-style restaurant.

8. Nirula’s is packed offer dusk with car loads of facilities descending for the experience. Its approach of serving fun foods for the entire family (that’s the ad line) has served well.

9. Over the last 10 years claims the company the number who entered the premises has doubled to 44,000 everyday. And over the same period the turnover has risen more

than 4.5 times. The company is cagey about parting with precise figure of its turnover.

10. To target the family, the chain has founded has focused on the child who will led the rest in (last year Santa Claus appeared in it’s to hand out sweets to children.

11. another reason why nirula’s is comfortably placed is that in spite of being in a monopoly situation for decades with its brand of restaurant it has been cautious about the way in which it, ha been increased prices says kuchkreja, we rely on the high volumes and low margins as a principle while the multinational chains will undoubtedly get their customers with their overheads near nirula’s on-price.

12. Nirula’s has resorted to offering a wide range of food to appeal to wide variety of tastes. There is western-style food, a large number of Indian items especially from the tandoor) plus a range of biryanis to the local residents.

13. Assuming that there is no internal trouble (to which family run businesses and so prone) the chain will not only survive but, probably do even better than before.

Problem of the case:

1. The order is dealt with after it has been placed.2. Nirula’s is contemplating other locations in west asia while developing a base

abroad presents obvious logistics problems.3. Its more urgent problem may be one of keeping the employees, many of whom are

certain to receive offers from new rivals.

Solution of the case:

Short term solution:

1. Quick service to the customers as their competitors does.2. Give incentives to the employees.

Long term solution:

1. To retain customers their must be quick service.2. The price of its items must be same in all outlets, and they should keep the menu

same at all their outlets.

Best solution:

Short term solution:

1.Quick service to the customers as their competitors does.

Long term solution:

To retain customers their must be quick service.

6.Title-SATISH:THE MEATWALLA

Area of the case- market segmentation, economies of scale

facts of the case-1. Satish Sehajpal was an officer at the air force.

2. He had studied hygiene, nourishment, diet planning, quality assurance of food products, cooking techniques and so on.

3. But due to his father’s death, he had to leave the air force and settle in Hyderabad to look after his mother.

4. After searching and studying for a suitable occupation, Mr. Satish finally took the meat processing business.

5. He had difficulties in the areas of working, speed money, tips, purchasing proper inputs, timely transport & quality control.

The case study highlights the need for a back-up market and not depending on a

single set of customers, especially when the market is overseas. Second, the case

effectively brings out the concept of economies of scale. The higher the percentage

of utilization of installed capacity, the lower will be the cost of production. This is

because the overheads and fixed expenses get distributed over a larger turnover.

Psychologically too, the case study illustrates the differences in the reaction of an

owner who is on the way out and the newcomer. While the former puts a project

for the diversification of the market on the back puts a project for the

diversification of the market on the back burner, the latter quickly goes into more

details to determine the applicability of the idea. The aim of the exercise is to

select the segment of the meat market in the states of Maharashtra and Andhra

Pradesh to suit the requirements of M/s Bindu & Gautum. While the narrative does

not explicitly state it, the solution could consist of the selection of more than one

segment or a combination of segments.

problem of the case-1. Area of working, speed money.

2. Purchasing proper inputs and timely transport.

3. Quality Control.

solution-1. Selection of each segment could be considered a solution. Applying the

principle of examining the worst solution first, we should take up the segment of

bazaar sales first. The size of this segment is not known fully and accurately.

2. A market research study is required. The segment will require a sizable amount

of advertisements and calls for approaching a large number of retailers.

Establishing M/s Bindu & Gautum as suppliers will require a lot of time. This

segment is thus not suitable for M/s Bindu & Gautum under the present

circumstances

3. The second segment could be the institutional sales. It has the merit of needing

little advertisement and would require approaching a small number of institutions.

It has the drawbacks of getting lower prices, needing a change in the packaging

and the product. Assured regular supplies would have to be maintained to the

customers. This would imply that the ups and downs in export supplies cannot be

dumped in this market.

4. The case of the upper class segment appears straight forward. Limited

advertising may be needed and only a few retailers to stock the product. There is

no need to change the product or the packaging. These are definite advantages. The

drawback is the size of the market can be overcome either by moving into the

neighboring states of Madhya Pradesh, Rajasthan, etc.

5. Alternatively, the company can initially start with this market and

simultaneously start a dialogue with institutional customers.

best solution-Thus, as the production increases or there is possible trouble with a consignment

for export not meeting the grades, the institutional buyers could be persuaded to

step in. a combination of 2 segment would be an ideal solution.

7.Title-Advertising of Super Flask Ltd.

Area of the case- Promotional Mix

facts of the case-1. Super Flask Ltd. Manufactures flasks and thermo ware products that help in

keeping hot and cold products at their respective temperatures.

2. The manufacturing plant is located in Pune with a turnover of Rs. 40 crore.

3. The potential zone is South Zone i.e. 35% of the total; and is offering 90

models.

4. They have appointed various distributors and wholesalers through rail and road

to avail it to the ultimate customers.

5. The promotional budget is 1% of sales.

6. They have value force of 30 which are responsible for personal selling.

7. All the sales promotion activities are centralized.

SOLUTION-Promotion is the only P in the marketing mix which deliberately communicates

benefits of the product and all the offerings of the firm to the target markets.

The five elements of Promotion Mix are:1. Advertising – Advertising relates to publicity through Co-operative

advertising, Print Media like Newspaper, pamphlets, Audio/ Video advertising like ad on TV or Radio, etc.

2. Personal Selling – This involves face-to-face interaction between the sales person and the prospective customer. E.g. Door to Door selling i.e. salesmanship can be the best for personal selling.

3. Direct Marketing – One-to-one basis approach to the customers. Marketing through e-mail, tele-marketing, coupons and catalogues constitutes direct marketing.

4. Sales Promotion – Promotional events can be organized under the name of the company to promote various products of the company.

5. Public Relations – This relates to creation of a positive image about the company and its products in the minds of the public at large.

best solution-1. Advertising – Print Media

2. Personal Selling – Salesmanship

3. Direct Marketing – E-mail Marketing

4. Sales Promotion – Free Samples

5. Public Relations – Annual Reports, CSR

8.Title- PERFORMANCE OF 4 SALESMEN

Area of the case : Compensation management.sub area: Performance appraisal

facts of the case:Table

Sales- person Calls per Week

Number of Orders

Value of Orders

Average Order Market Potential

A 40 20 1,00,000 5,000 4,00,000

B 90 90 90,000 1,000 9,00,000

C 50 20 2,00,000 10,000 5,00,000

D 200 160 3,20,000 2,000 8,50,000

problem of the case :

1] No infirmity in standard in terms of calls to be made.2] Values of orders differ with each salesperson.

3] The market potential measured in terms of rupees.4] B’s number of orders are hundred percent as per calls, but his value of order or his average order are less than A, C and D.

SOLUTION: short term:

1] B,s market potential is more than other. But his value of order is less than others. he should increase his average order if he increase his average order his value of order his value of order automatically increase.2] A & C should try to fulfill their calls per week then they could be get high market potential.3] The number of orders of D is 80% but his average orders are less than A &C .That’s y he has to increase his average orders.

long term : 1] For increasing the average order the company has to give proper training to the employees.2] The number calls should be distributed to everyone equally.

best solution:All salesman should to fulfill their calls order in hundred percent this is important increase market potential.

9.Title-THE WONDER DRUG

Area: Marketing mix.sub-area:

Promotion mix.facts of the case: 1] dr. Archit. k.bura has developed a composite treatment consisting of a tablet and powder. The powder reduces the growth of facial hair and the tablet diverts nutrition from the facial hair to the hair on the head. The period of the treatment is 9 months. 2] The medicines have been tested by the government and found fit for human use without any harmful effects. 3] A factory for manufacturing these medicines and a company with its head office co-located with the factory has been setup. 4] The marketing team wants distribution channel to be in place before the production or advertising starts their proposal is to employ state level distributors and make facial powder available through barber shop and the tablets through chemists and medical store.problem of the case : 1] To suggest a suitable distribution channel for selling a composite treatment for reducing facial hair and diverting nutrition from the facial hair to the hair on the scalp. 2] The treatment is not totally cure baldness.

short term : 1] The proposal made by the marketing team. The powder and the tablets are the composite treatment and there sales should be effected through 2 different sources. 2] Barbers will not be able to handle the sales should accepted as per the assumption. The distributor per state may not be adequate. long term:1] Retailing the department stores, chemists, beauty parlors. Distributors should be appointed based on the judgment of the turnover excepted. Bigger cities and developed areas may have greater sales and may require independent distributors. Smaller turnover territories may have a distributor covering a larger geographic area.2] The product is readily available at outlets usually frequented by the type of people who can afford a course of this expensive medicine. The potential customers will feel assured since they consider these outlets to be dependable .these type of medication is likely to have some snob value and buying it from a reputed outlet will satisfy the ego. There are at least chances of getting adulterated medicines if bought from a good shop.best solution : Combination of second and third solution may be the best course to follow. The sale of the medicine directly from the factory and also appoint elite store, chemist, beauty parlors etc, and distributors should be appointed depending upon the sales expected in an area………

10.Title-PERISHING RENTS

Area of the case: Strategic management. sub-area: Sustainable development.facts of the case: 1] Property in posh locality.2] Ground floor hired by school.3] The occupancy was low due to recession.4] No matching of ideas of both partners.

problem of the case: 1] Fixed assets resulting into loss due to recession. 2] Bajat argued that not to lease house at low rent.solution : short term

1] Rajesh has to adopt the old trend of his father’s business. Because his fathers have already made a good impression in front of his regular customer… 2] Rajesh even have to interact with the customers to know there choices and testes so can he develop some important changes in his business.long term:1] Rental property can be produces a regular income which is huge advantages for many people. When you own rental property, it is a business where you can definitely be your own boss. This is an advantage that many find very attractive maintaining open lines of communication between tenant and manger will also go a long way in improving conditions within a rental property environment.2] Guesthouse is an inexpensive hotel like lodging in still others is a private home which has been converted for the exclusive use of guest accommodation. A guest house without a staff to take care a need for your guest because the guest opinion hinges on the quality of your guest house needs nothing but the best people managing and working.

Best solution-Rajesh even have to interact with the customers to know there choices and testes so can he develop some important changes in his business.