ABC & Company started manufacturing Soya Chunks at Bhopal in 1995. They put up a small Extractor Plant comprising of Mixer, Blender, Extractor, Driver at a cost of Rs. 15 Lacs. They were buying Soya powder from Indore. Initially the sales was in bulk. They used to sell in bags of 20 Kgs each only
In 1997 Sales was 500 Tonnes amounting to approx Rs. 1 Crore. There were 1 Sales Manager and 2 Sales Executives. Mostly Sales was confirmed through the wholesale Market in Delhi or U.P.
In 2006, the market and company position changed as under :
Total Soya Chunks Market – Approx. Rs. 500 Crore
Unbranded – Approx. Rs. 400 Crore
Branded – Approx. Rs. 100 Crore
• There were 4 major players in the branded market each having an approx market share of 20%.
• Composition of market was such that branded and unbranded sales was more or less equal in value.
• Price of Branded was almost 2 ½ times that of unbranded
• For branded main market is metros where as Unbranded looked more in North East states and B class cities
ABC & Company is trying to enter Soya powder market which can be sold to Chunk manufacturers. Company also feels like they should gain the market share for which Brand building exercise needs to be taken up.
Make your suitable assumptions and prepare a Sales Organisation Structure indicating each position
Solution to Case 1
1. For the purpose of brand-building, multiple exercises like merchandising and advertising may have to be done. It is difficult for product or sale managers to execute/design this and so a Brand Manager is needed and 4 Assistant Brand Managers are needed to manage the work-load. They are accountable to the vice-president-Marketing for Soya Businesses. 2. The Soya Powder is a product of industrial sale involving b2b transactions. To facilitate this, a separate wing in the Marketing Department is needed. This wing shall have a...