Adithyan CP

Arun Kumar

NEER UDYOG LIMITED Preet Ratan Singh

Yatin Kumar
Iqbal Singh
Govind Singh
SUMMARY
Neer Udyog limited has been a pioneer in the bottled water segment.
For 12 years, Neer Udyog maintained its position as the market leader in the bottled
water industry.
The competition now has become intense and brands like Pepsi, Coke and Bisleri have
the advantage of huge distribution network.
The market share of Neer Udyog has eroded over the past 5-6 years and the
challenge before the firm is to maintain its market share.
The firm has a credit policy to offer a credit period of one month to its distributors
without any cash discount.
The marketing department of the firm wants to further liberalize the credit policy in
order to increase sales.
SHOULD NEER UDYOG LIBERALIZE ITS CREDIT
POLICY?
Yes, Neer Udyog should liberalize its credit policy because :
•The firm needs to increase its sales in order to regain its market share.
•The collection cost and bad debt has been low for the firm. So, the risk involves is less
and the potential reward is high.
•There is not much scope for product differentiation in the segment. So, including cash
discount in the credit terms can payoff for the firm.
THANK YOU !!!!