CASE ANALYSIS OF

VORA AND COMPANY

Vora and company is owned by M.C. VORA and had been in the grain business
for several generations. In 1959 after the government of India had stopped the
importation of packaged cereals. Mr. Vora and his family decided to enter the
business of processing and selling a product similar to Quaker brand of quick
cooking of rolled oats. Vora and company manufacturers of blossom quick
cooking oats located at Lucknow . They had started to sell its product nationally
in 1961 .
MAJOR PROBLEMS FACED BY MR. VORA
• There was no proper research , analysis and
information and data about operating model of the
competitor.
• There was no proper communication between
Vora and company and the selling agents.
• Vora and company had a competitor called
Ganesh mills which manufactured the same quick-
cooking white oats.
• Mr. Vora was not connected with the distributors,
leaving the responsibility solely on the agents.
• The total cost of the company was greater then the
total revenue generated by the company.
• No proper advertising campaign.
• USP of the product which is “Quick-Cooking” is
not prominently highlighted in the package.
• The current distributors merely take orders from
retailers and supply the same from vora and
company with no stocking and delivery by
distributors, there were short comings in the
logistics.
BUSINESS STRATEGY
• The company has to do a comprehensive market research to understand the
demands of various regions.
• The packaging has to be innovative and differentiable from its competitors
like “Champion oats” .
• Their USP is “Quick cooking” and it should be highlighted .
• The current cost of the packing tin is around 40% of the direct cost incurred.
• The packaging can be done in other measurements rather than only 550 gram
packs which would be able to cater two various segments like larger families
depending upon the consumption.
• The picture of smiling girls should be changed as it is very similar to that of
Champion oats. There should be a provision of incentives for retailers and
distributors according to the quantity of sales
• Alternative packaging solutions should be developed which can help in
reducing the cost.
• In the area of potentially high sales , experienced and efficient sales agents
must be employed.
• Distributors should employ more sub distributors to branch out the process
and reach a bigger market.
 COST ANALYSIS
After analyzing cost of products of Vora and company , we found that Vora and company is able to cover direct cost of Rs 59.92
per case, but the company is not able to cover the indirect cost of 12.18 per case at an average sales of 83 cases per month, so the
total cost of per case is valued at 72.10 which is more than price on which the supplier is providing goods which is 64 for North
India and 68 for South India. In this way they are incurring losses of Rs 8.10 in North and Rs 4.10 in South per case respectively.

So the only thing that will help the Vora and Company in earning profits is that they need to increase their sales so that they can also
cover the indirect cost. If the company is able to increase their sales by approximately by 500 cases per month then they will able to
cover the indirect cost and in parallel to that they will be able to earn profits. For example-if they are able to sell 500 cases per
month then the indirect cost of per case would be approximately Rs 2 thus the total cost of a product will become 61.92 per case
(59.92+2) here 59.92 is the direct cost and 2 is the indirect cost per case so now they are able to make profits of Rs 2.08 per case in
north India and Rs 6.08 in South India