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Case Study

Vora and Company


1. Should Mr.Vora continue
in this business?
Mr.Vora should continue
his business of Blossom
Oats as
● The product quality and
the taste of Blossom Oats
was found to be equal to
or better than
competing products.
● Mr.Vora’s Blossom Oats
is one of the only two
competitors that are
serving the market.
● Close to 3 years is an
insufficient quantum of
time for the business to
comment on the viability
of
operations. Initially,
Champion also took
around 3 years to get
established in the national
market.
● There are numerous
drawbacks (mentioned in
Question 2) of the current
operating and marketing
model which can be easily
rectified
Q) Should Mr. Vora continue in this business?
Mr. Vora must continue his business of Blossom Oats. Following are the observations in support.
1. Sales are irregular but the product is being sold in market. Average value should not be seen
for further business and Mr.Vora should go for a segmentation study to find where the sales
are lacking.
2. Mr.Vora is already aware of low sales in South India due to distribution agent issues and lack
of sales force. The same can be addressed aggressively and by personally meeting the agents
to let them understand the prospects of future business.
3. Competitor analysis is a missing link. (Input cost, Labor cost, Overheads, Capacity utilization,
Volume of sales region wise)
4. ISI mark certified that the taste, quality and purity of Blossom Oats was found to be equal to
or better than competing products in current market segment.
5. Mr.Vora is adopting the same strategy as adopted by competitor or import products and
whereas there is room for improvement in terms of packaging size reduction.

Q) What are the major problems faced by Vora and Company?


The major problems faced by Vora and Co. are
1. Irregular sales.
2. Lack of market research in terms of Customer segmentation and market segmentation.
3. Communication lack between distributors, agents and Company. No personal touch and
strategy briefing.
4. No strategy as such for improvement of sales or increasing volumes.
5. High input material cost and packaging cost. (63% of cost price)

Q) Should Vora make any changes in decisions concerning:


1. Product and Packaging:-
a. Product is stable and been validated for taste so no major changes required except
adding a distinctive advantage of different flavors and recipe with different
combinations.
b. Packaging size can be reduced to penetrate in the market so that person who can not
buy the tin can use smaller pack to get a feel and taste of product.
2. Advertisements and Promotions
a. Advertisement should have distinctive advantage over competitor where customer
can identify it as a different brand all together.
b. An aggressive promotional strategy should be adopted by organizing some
competitions with an innovative way of using oat meal and additional weight can be
added by recipe book with the name of innovator’s.
3. Pricing
a. Price should be increased and smaller packing should be introduced. Agent margins
should be reduced and incentive should be offered on bulk selling on quarterly basis.
b. Work should be done on reducing the input cost like material and packaging.
4. Sales and distribution
a. Market analysis and segmentation should be done, Experienced sales force and
strategy for sales should be in place. Pitching point should be identified and product
differentiation should be on top agenda along with superior quality. Mr.Vora should
personally get in touch with Sales people and agents/distributors. Target oriented
sales region wise should be the focus.
b. Capacity should be utilized fully and an inventory should be built in at distributors’
end to have a quick and easy availability after the market research.

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