Case: Vora and Company

PGP/23/481

Qs 1. Should Mr. Vora continue in this business?

I believe, Mr. Vora should continue the business considering the
a) Appeal of the quick cooking oats to many housewives
b) Good quality product
c) Pricing advantage even after increasing the selling price above break even point
d) Good sell in southern india even after having various major problems

Qs 2. What are the major problems faced by Mr Vora and company?

a) No definite data regarding actual volume of sales and demand for the product
b) Inefficient, inexperienced and expensive distribution channel
c) Lack of advertisement
d) Packaging similar to its rival champion quick cooking oats
e) Irregular production
f) Manufacturing cost is greater than selling price
g) Half of the work force used is not dedicated for this particular product

Qs 3. Should Vora make any changes in decision concerning i) product and packaging ii) Advertisement
and Promotion iii) Pricing iv) Sales and distribution
i) Product and packaging
a) The quick oats product was tested among consumer and quality was rated as equal to or better than
competitors but the product does not have I.S.I. certification yet, so Mr Vora should obtain I.S.I.
certificate as soon as possible
b) Vora and company used round heavy tin package similar to it's rival. Design of the tin was also
almost same. Mr Vora should change the packaging and it's design. He should focus more on phrase
quick cooking and highlight the same.
c) Production is irregular and half of the work force used is not dedicated for this particular product.
Vora and company must address this immediately
ii) Advertisement and Promotion
a) The first step is to identify the demand develop advertising strategy accordingly. They should target
housewives through advertisement.
b) Vora and company does not have experienced sales manager and dedicated distribution channel.
They should have distribution channel and experienced sales manager as soon as possible
iii) Pricing
a) Selling price of the product is less than the overall production cost. Mr. Vora must increase the
price to make profit
b) Total production cost is 72.1, selling price of the product is 64 in the North India and 68 in South
India. Selling price must be greater than 72.1 to make profit
iv) Sales and Distribution
a) Sales is good in southern India but not in North India, to overcome this sales and distribution
channel must be owned by them
b) Company should hire experienced personnel for the sales and distribution management