A Case Study on:

“VORA AND COMPANY”

BY
SHUBHAJIT NANDI
DEPARTMENT OF BUSINESS ADMINISTRATION
UNIVERSITY OF KALYANI
ROLL-03
MBA -4TH SEM
 MR.VORA’S STRATEGY REGARDING MAJOR COMPONENT
OF MARKETING MIX WOULD BE

1. MARKETING RESEARCH
Mr. Vora has started a company without much research. In comparison to Ganesh Flour
Mills, Vora & company had got lesser time for marketing research at the time of going
nationally after the introduction of the company, so this company has less knowledge with
the prevailing market condition than Ganesh Flour Mills.

Suggestion: - It is suggested that the company should have more marketing research with the
ongoing business locally and nationally to become more acquainted with the prevailing
market condition. Also the company should increase its product quality.

2. PACKAGING
Company’s product caring the picture of a smiling girl which is less attractive to the target
consumer, as the product had appeal to many housewives.

Suggestion: - It is suggested that the company should use the picture of a housewife along
with the existing picture for making the product more attractive to the target consumer. Also
the company should make the tin more attractive.

3. DISTRIBUTION CHANNEL:-

AGENT

SALESMAN SALESMAN SALESMAN

SUBDISTIBUTOR SUBDISTIBUTOR SUBDISTIBUTOR

RETAILER RETAILER RETAILER

Suggestion: - Distribution channel as above is almost good. For more cooperation and better
sluggishness among the sub agents / distributors Mr. Vora should communicate his directions
to agents / distributors directly, instead of communicate through e-mail or any other mode of
communication. Mr. Vora should encourage them and offer them incentives for increase in
sales volume.
 BREAKDOWN OF UNIT COST (500 CASES)

VARIABLE COST PER UNIT

SRL. NO Particulars Cost (Rs)

1 Material 24.12
2 Packing tins 21.60
3 Other packing materials, wooden case waterproof 4.00
paper, box strapping pads
4 Direct labour 5.40
5 Railway freight 4.80
Total variable cost (approximately) 60.00

 TOTAL OVERHEAD COSTS (APPROXIMATELY): RS - 2000 (RS 4 PER UNIT)

PRICING DECISION
COMPARISON OF PRICE PER CASE (FOR SMALLER TINS)

SRL. NO Name of company Vora and company Ganesh flour mills

(20% discount & (15% discount &
commission) commission)
Selling price 81 93
1
Less commission 17 14
2 and discounts
Net realization 64 79
3

In comparison to Ganesh Flour Mills the selling price of Vora and company‘s is much lower.
So the company can increase the price of its product closer to that of Ganesh Flour Mills. It
can be increase up to Rs 90 per case. Resulting, it can grab the market in Northern India
having lower price.
C-V-P ANALYSIS (UNDER THE NEW SELLING PRICE RS 90)

500 CASES

Net realization (rs.90 less 20%) Rs 72

Less variable cost Rs 60

Contribution(a) Rs 12
Less fixed cost(rs.2000) Rs.04
Profit or loss Rs 08
Break even point(in units) 167 units
[fixed cost/contribution per unit]
Profit achieved from[500-167](b) 333 units
Profits(c=a*b)[approximately] Rs.4000
Return on working capital(monthly) Rs 4000/Rs.(60*500)+2000
[c/ total working capital*100] = 12.5%
Return on working capital(annually) 12.5%*12=150%

Return on investment Rs 4000/Rs.

[c/(total working capital+value of [(60*500)+2000+100000]
plant)*100] = 3.03%

To achieve the glory of success and to get back to the right directions, it is suggested
that the company should follow and maintain the above mentioned calculations. It will
help to earn profit and company will get satisfactory result in the upcoming years.

Conclusion: - Mr. Vora has started a company without much research. His brand of
"Blossom, Quick Cooking Oats" is faring very badly in the market. Its only competition is
Ganesh Mill's Champion Oats. Both these companies started production after the exit of
Quaker oats of America. However, they have not been able to capture the market as they
expected. Mr. Vora approached the SSI consultants to find out the next best thing to be done.
Question that needs to be asked is, what are Mr. Vora, plan? It has been identified from
careful analysis of the facts presents to us that his short term plan is to make profits and stop
the immediate loss of money.