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CASE-STUDY
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Kaushik Ganguly [03]
Chiranjib Rudra [05]
Sandip Ghosh [22]
Avash Chakraborty [17]
GROUP MEMBERS
Arghya Basu Adhikari [41]
Sanjay Ghosh [11]
Tathagata Ghosh [31]
Nirmal Yadav [07]
Anthony Gomes [13]
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Case Study
Company Profile:-
Product:-
Challenges Ahead:-
Market Competitor:-
Synthetic Pencil Manufacturing Company.
Wood-pencils
Financial Crisis due to variations in
monthly sales figure.
Ballpoint Pen manufacturing company.
The purpose of the case study is to analyze the causesbehind the failure of the Synthetic Pencil Manufacturing
Company. So we have highlighted certain major points
which is responsible for the financial crisis..
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1.Ballpoint pens has attractive colours andcomparatively less price .
2.The marketing & sales team are ineffective regardingmarket trend as they are satisfied without assessment .
3.Increase in price of wood causes declining quality dueto the usage of hard-wood instead of soft-wood.
4.R&D Team has developed variations in existingproduct, additional features along with new products inline.
5.The Corporate Management is not sure about the
forecasting of sales analysis.
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Case Study
From the case study we need to investigate and report onthe following questions:-
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From the given data references we can write:-
Serial
No
Months
(t)Sales
Ytt*Yt t2
1 120 120 1 2 125 250 4 3 180 540 9
4 100 400 16 5 90 450 25 6 80 480 36 7 130 910 49 8 110 880 64 9 60 540 81 10 130 1300 100
11 170 1870 121 12 150 1800 144 78 1445 9540 650
42.12012/1445/ nYY t
From the above table we can say that: -
5.612/78/nttand
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From the given data references we can plot the below graph:-
Graphical Representation
Months
0
1020
30
40
50
60
70
80
90
100
110
120
130
140150
160
170
180
190
1 2 3 4 56 7
89
1011
12
Months
(t)
SalesYt
Market
Trend for
Synthetic
Pencil
Company.
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Now as we know by the Regression Analysis of time series
we can express the forecast equation as,
.0
tbbTtt
l
t
b
b
T
0
Trend Value of sales in time t
I n t e r c e p t o f t h e t r e n d l i n e
S l o p e o f t h e T r e n d l i n e
Again we know for computing the values of & we may write:-0b lb
ntt
nYtYtb
tt
l/)(
/)(.
22 tbYb l0&
t
Y
n
Yt Actual value of time series in period t
No. of periods
Average value of time series
Average value of time
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Actual trendSo from the table putting the values we get:-
.)(03.1
143
5.147
507650
593929540
12/)78(650
12/)144578(95402
approxb
b
l
l
So for we get,0b .)(73.113)5.603.1(42.1200 approxb
So the trend line equation of time series analysis, we get:-
tTt
03.173.113
Therefore the actual trend of the market as is reflected by sales we
can say is very slowly uprising (as value of is very small but
positive).l
b
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Forecast for the next three months are given below :-
18.129)1503.1(73.113
15.128)1403.1(73.113
12.127)1303.1(73.113
15/
14/
13/
tt
tt
tt
T
T
T
010
20
30
40
50
60
70
80
90
100
110
120130
140
150
160
170
180
190
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Monthly Sales figure
in Lakh
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If the trend is upward
If the trend is uprising then by spending money on product improvement,promotion, and distribution the firm can capture a dominant position. It forgoes
maximum current profit in the hope of making even greater profit in the next
stage.
The firm uses several strategies to sustain rapid market growth as
long as possible. These strategies are as follows:-
Improving product quality and adding new features and improved
styling
Adding new models and flanker products
Entering new segments
Increasing distributing coverage and entering new channels
Shifting from product awareness to product preferences
advertising
Lowering prices to attract the next layer of price sensitive buyers
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If there is a possibility of reaching the decline phase.In decline stage the symptoms are like
Decline sales
Low cost per customer
Declining profits
Laggards are targeted Declining competition
In this stage the company should take the below steps:-
Product : Phase out weak items
Price : Cut priceDistribution : Use selective distribution : Phase out unprofitable
outlets
Advertising : Reduce to level needed to retain hardcore loyalist
Sales Promotion : Reduce to minimal level
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SWOT ANALYSIS
Strong Brand Loyalty
Experience
Active R&D Centre
Wide Product variation
Quality Compromise
Inactive marketing team
Puzzled Management
Huge market Potential
Diversification
Cheap ball point pen mfgrs
Financial crisis
S W
TO
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Conclusion
They need to concentrate on following four things :-
CustomerReduce No. of customer complain
Increase customer satisfaction
Identify target customer and market segment and measures the companys success inthese segments
Focus on Internal Operation -
Product Innovation
Reduce New Product development time
Increase yield
Financial -Reduce cost in key areas
Increase revenue generation from new products
Learning -
Proper training for employees for their advancement
Increase employee satisfaction
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Henry Ford
A market is never saturated with agood product, but it is very quickly
saturated with a bad one
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TANDEM GROUP