Pirates Case Study 1

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A stitch in times saves nine!

‘Rise ‘n Shine’ was established by Pradeep Kumar in 2001. Located in


Kuttikkanam, a town in Kerala a semi-urban area, he established a
successful family operation fostering friendly relationships with trade
and local customers. The major bread winner of the firm is its coffee
blended with chicory in different proportions. Priced reasonably, the
'Bharat' brand attracted the lower- and middle-income groups in the
towns and rural areas

After completing 10 years of existence in the market’ Rise ‘n Shine’


decided to have a relook at the firm's operations and prospects and also
planning to introduce new flavor like masala tea, ginger tea etc. This
has become necessary" he says "because times have changed. The
market growth rate is 15 per cent in the trade journals which indeed is
a good figure. We have been doing the same things over the years
profitably. But now, many things look different even in the rural areas.
The boiling point is reached". He sat with Ranjini, his wife and business
partner to discuss the measures to be taken. They together examined
the 10-year sales data given below;

Table Sales History of


I Bharat
Sales value (Rs
Year
lakhs)
2002 25
2003 30
2004 36
2005 43
2006 49
2007 58
2008 68
2009 78
2010 84
2011 86
Ranjini: We have grown a lot! Our sales have grown threefold from
the inception. But things are not easy nowadays it seems. Even in the
first quarter of this year the movement of the product is not satisfactory
compared to the previous year?

Satyan: Well! The reason may be the marketing agency. I doubt their
commitment. I think we have to go on our own.

Ranjini: Maybe it is the consumer. Now there is more money, more


products and more information. Their preferences might have changed.

Satyan: It may be another reason because we have never advertised


our product. We do not have any direct relationships with our
consumers.

Ranjini: I think we need a sort of market survey to finalize our plans

It was during this critical time that they received a letter from Kristu
Jayanti College and the students requesting for a weekly internship
work for their undergraduate study.

Since they were also puzzled with the changes in the market scenario,
they agreed to take two students for the same.

The students presented a detailed research plan to find out the consumer
awareness levels, brand preferences and media habits to devise the
future promotion strategies, they also gathered information from the
retailers to know how good the supply was. The company is also
planning to introduce different flavors of tea in the market.

The entire Kerala was divided in to three districts namely Kottayam,


Idukki, and Kochi. It was decided to cover 140 consumers and 20
retailers from each district and the project was to be completed during
the 8 weeks of internship.

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