Vora and CompanyA detailed case study & analysis

Presented By:Akhila ReddyM. AkashA.KavyaRohit NathK. Akash

Problems of the Case

1.What are the major problems faced by Vora And Company?

2.If you are appointed as a consultant by Mr.

Vora, how would you proceed? What kind of

analysis would you do? What inferences would

you try to draw from your analysis? How would

you use your analysis and inferences to come

out with a plan of recommendation?

Major Problems faced by Vora and Company?

1.There was no proper research done before entering the business in 1959.

2.Vora and Co. had a competitor called Ganesh Mills which manufactured Quick cooking white oats.

3.There was no proper communication between Vora & Co. and the Selling agents.

4.Inspite of high demand in South India for Oats, the sales decreased because of unexperienced agents.

5.There was a problem with product packaging, Pricing and Advertising.

1. Market Research

Vora & Co. would proceed further by doing detailed market research on Consumer Behaviour, Buying preferences, Marketing Environment.

2. Competitor

(Ganesh Mills)

Vora & Co. have to compete with external environment in order to capture the market share, by increasing the product quality, advertising, changing the price and packaging.

3. Communication Gap

Vora & Co. will be communicating personally by organizing meeting with agents of North & South India. Rather than only communicating by mails.

This would increase the effectiveness of the agents towards selling.

4. Commitment by agents

The agents in South India are not committed towards the sales, which resulted in decrease in the sales though the demand was high.

Vora & Co. will be appointing experienced agents for the entire distribution in South India to push the sales.

5. Product Packaging

Vora & Co. will be changing the product packaging, which is now similar to that of competitor’s product.

The picture of a young smiling girl will be replaced by a housewife, as this product is appealing to housewives.

The color scheme will be changed from Green and red to Blue and cream.

The brand name “Blossom” will be printed on the front side of the tin.

The tagline “Quick Cooking White Oats” will be highlighted.

6. Pricing

As Vora & Co. is appointing an experienced Selling Agent in South India Vora & Co. is increasing the commission to 11% from 10%.

This increased the rate of the product to Rs. 88 and profit by Rs. 1.72.

6. Pricing

Cost per caseRevised rate

(Rs.)Old

Rate(Rs.)Material 24.12 24.12Packaging 21.6 21.6Other packing material 4 4Direct Labour 5.4 5.4Railway freight 4.8 4.8Total Cost per case 59.92 59.92500 cases per month (Direct) 29960 29960Overheads per month (Indirect) 1015 1015Total Cost per month 30975 30975Sales (88*500 cases), (85*500 cases) 44000.00 42500.00Commission & Trade Discount(21 %,20%) 9240.00 8500.00Sales less commssion 34760.00 34000.00Profit for 500 Cases 3785.00 3025.00Profit for 1 case 7.57 6.05

7. Advertising

As Vora & Co. have improved the product to make customers aware, Vora & Co. will be advertising the product in radio, newspaper etc.

Vora & Co. will be decreasing the marketing myopia and will be concentrating more on customer demand and customer feedback.

Conclusion

As Vora & Co. have improved the product to make customers aware, Vora & Co. will be advertising the product in radio, newspaper etc.

Vora & Co. would proceed further by doing detailed market research on Consumer Behaviour, Buying preferences, Marketing Environment.

This increased the rate of the product to Rs. 88 and profit by Rs. 1.72.

THANK YOU