KUZAMA LTD.

Group Case Study

Course: Strategic Marketing
Section: 02
Course Code: MKT 460.2

Submitted to: Fahad Feroz

Senior Lecturer of North South University

Submitted By:
Rafat Hasan 1813643630
Faiza Binta Awal 1811375630
Shahiduzzaman Tamim 1811770630
Imtiaz Ahmed 1821306630
Sadman Shahriar Omio 1821668630

Date Of Submission: 17/08/2021

1. Kuzama LTD. produces bike racks for bicycle riders. They have two varieties of
products, ‘Double’ and ‘Triple’.Two bicycles can be carried in the Double product
rack, and in the Triple product rack, three bicycles can be carried.
Issues:
• In 2016 the owner hired a manager focusing on the ‘Triple” named Leeshah. The
owner decided to give $1,40,000 in addition to a commission of $5 per unit. Next
year the owner hired another manager who will be given $1,45,000 per year named
 Zie. Zie came to know that he will not be given any commission wherelese Leeshah
was awarded a commission.
• The cost of ‘Double’ is $35 whereas the cost of ‘Triple’ is $30; this happens
because the laborers are unskilled. These laborers are not given any training
throughout the year, and they are abundant in Cascadia; in addition, they have a
loan that needs to be repaid at 10% per annum.
• The factory has 1000 units per month, and all the production equipment of ‘double’
and ‘Triple’ are on lease. The factory will be closed in October and November.
• Kuzama had done market research and found out that 7% of the population have
bike racks, and only 5% have bike racks. 65% of the population have two bikes
per rack, 30% three bikes per rack, and others 5%.
• There have been complaints about not shipping products on time from the retailers,
which are particularly problematic shipments in the holiday season.

Recommendations:
Unskilled labours: We have seen that the price of the two products varies, it occurred
because of the unskilled labours. The labourers need to be given training so that they
learn the job and do it efficiently in the future.
Improve Interpersonal Relationships: Here managers and employees should be
treated the same. They are not treated the same. Here we show that by their salary
and bonus system. And employees are not as skilled also. If all employees are treated
the same then they do not give their work properly. This is the same for skilled and
unskilled people. Unskilled people can not provide good service if they wish also. So
employees have to be treated the same by salary and by giving proper training. In the
company everyone should inter communicate so that they can work with each other and
the work must be done effectively.
Start Selling Products Online: As they sell their products only by retailers so they need
to do something new. In this new thing they can launch facebook pages and Instagram
pages of their products. By Facebook page they can take orders from customers that they
can sell directly to customers . If they can do it then they give some discount offer on
occasion as they sell directly which attracts customers. And they can make a higher profit
by directly selling products to their customers online.

2. By giving the labour proper training they can make the products in less time with low
cost. As an example if we make a training programme for the labourers so that they can
train themselves. By doing this they make more bike racks in less time and by
producing more the company will be profitable like they produced 1000 units in 400 $
each but if they produced 1100 in a month the cost remains the same. So the cost will
be decreased and the profit will be high.
3. Enhance the relationship between people within the company The interpersonal
relationship within the company was another key issue identified by Kuzama Ltd. As the
Triple Manager, Zie, shows, the pay inequality between managers results from the
tension that needs to be relieved between two managers. Another way of improving the
relationships between employees is to go to the company retreat for team building which
is much needed. It was a poor choice from the beginning that there had been uneven pay
and support between two staff at the same level. Now Kuzama has an employee who
distrusts the firm and has a potential lawsuit opened up. But the solution to this problem
is much easier now that the Triple line has been removed. Zie should be appointed Quad
manager and be modified to match Leesha with his salary and support staff. To achieve
this, Kuzama has to commission each Quad unit sold in proportion to Leeshah's
commission on each Double unit sold. The commission from Leeshah is $5,
approximately 3.5% of the double contribution margin. In order for commissions of
approximately $8.06, Zie should receive an estimated 3.5 per cent of the Quad
contribution margin. With the commission now being equivalent, the annual salary of
Leeshah must be raised from 140,000 dollars to 145,000 dollars to equal the pay of Zie.
Zie must also be provided with the same support personnel from two Leeshah
administrative assistants. These employees do the same job, and Kuzama must show
them that the company values them equally. Since these two managers are no longer an
issue with pay and support staff4, developing a "shared thinking" is much easier. This
"shared thinking" will greatly benefit the company, as the inequalities between managers
have been addressed and the "us vs." Managers can now come together to achieve a
common aim of gaining greater profit for the company and, in turn, to make greater profit.
The retreat offered by Xinsheir Lodge is another way to improve the interpersonal
relationships within Kuzama. By implementing all the recommendations outlined in this
analysis, the company will undergo significant changes in 2019. A team-building retreat
is an excellent way to enhance employee morale, improve relations between offices and
factory workers, and show Kuzama how much they appreciate the hard job that their
employees have done in the last year. However, the withdrawal is expected to be moved
to November or the beginning of December from June 2019. The company loses an
additional week because the plant is already shut down for those two months. In terms of
improving employee relations, this retreat would be a big advantage to the company. The
changes recommended in this analysis work only if the employees in the company are
prepared to work hard to improve Kuzama. The employees feel this willingness to work,
they feel valued and their hard work is not unnoticed, that they are fairmente compensated
for their work. The implementation of the above-mentioned recommendations will help
Kuzama implement the remaining two recommendations smoothly and successfully.

4. The ultimate recommendation is to start selling Kuzama products online, solving the
company’s many problems. The problems solved by the online retail sector would include
incorrect shipments received by retailers, the limited consumer base currently reached by
Kuzama and also the excess stock of the company5. Online sales may appear like a
simple cash maker, but customers outside Cascadia may not be willing to buy from a
brand that is unfamiliar with a new business like Kuzama. A few marketing proposals were
developed in order to combat this. Recently, retailers selling Kuzama products
complained about the late delivery of the incorrect product mix. This was particularly true
during the holidays when the company is obliged to send its clients the proper orders.
The company relieves the extra stress on retailers through increased shopping around
Christmas by selling products online. It would not only operationally sell online benefits
but also financially benefit them. The report indicates that, by not giving retailers a $10
profit margin on any Kuzama product sold, the company would sparen an estimated
$80,000 annually. Online retailers are becoming more and more popular as technology
progresses, and Kuzama is wise to partner with these virtual stores to expand its
business. Because Kuzama currently sells only to local Cascadian retailers, its principal
customer base lives across Cascadia. To continue to grow the company, its number of
customers will have to grow with them in the coming years. In Cascadia there are only so
many people that Kuzama can sell to and the company must therefore expand to different
areas. One excellent way to start with online sales. They are able to do their own kind of
market research using the Internet retailers, and sell them directly to consumers to see
which neighborhoods have a high demand for bicycle racks. Kuzama is advised to start
selling the Double online only when the Quad production is only beginning. In order to
make a profit of these units, the excess stock that the company has on the Double must
also be sold. Web-based shops are an excellent way to expand to neighboring regions,
which increase their number of customers while also removing additional stocks. Although
there may appear to be no downsides to online sales, some factors have to be
considered. Potential consumers are wary of buying from a brand they have never heard
of before, particularly when they buy a large amount with a relatively new and unfamiliar
company like Kuzama. The recycling program recommends that you benefit from your
unique locking system and special labels to tackle this problem. Because "online reviews
indicate strong backing for the certificate and superb locking system," this factor would
be highly emphasized by potential clients. Unfortunately, it would be a positive view of
their bike racks before possible customers had to underline how satisfied the existing
Kuzama customers have been with Kuzama products. As discussed above, online retail
has many advantages. To reach new customers and thus boost your profit Kuzama
should benefit from these benefits and begin to sell your products online.

5. SWOT analysis

Strengths Weaknesses

Patent- The patent of Kuzama's locking Limited Assortment- Today only two products
system is unlike any other product on are produced by the company, and therefore
the market for its motorcycle racks. a limited number of customers is reached.
Unfair pay – Double and triple managers'
Recycling Program - Consumers unequal pay could trigger legal proceedings.
support the program in which Kuzama Price- Kuzama is not a cost leader that means
participates. that potential customers can search for a
cheaper alternative.
Tangible assets - Kuzama-owned Exclusive Retail - Kuzama only sells its
equipment and property are tangible customers to dealers in or close to Cascadia.
company-owned assets. Incorrect Shipments - The incorrect mix of
goods to retailers could stop the sale of
Kuzama products.

Opportunities Threats

Sell Online- With products only
sold by retailers, Kuzama is able
to begin selling their products
online.
Quad- The Quad will increase its
profit while its product range is
expanded.
Kayak and paddleboard - Their
consumer base would be
broadened by producing kayak or
paddleboard rack.
Bike Racks for electric cars- New bike racks
for electric cars may reduce sales in
Kuzama, as customers seek more
comfortable options.
Motorcycle in Cascadia— Only 7% of
Cascadians have a bicycle that means that
people have a narrow market.
Failure to reputation- If the company begins
to sell its reputation online outside
Company Retreat- The retreat
would create personal relations
between the factory and the
employees at the office.
Cascadia, the effects on sales can be
negative.
New products- If the Quads, kayaks or
paddle boards are produced it should be
allowed to enter into its new equipment line
of credit.