Vora and Co

Topics: Marketing, Sales, Rolled oats Pages: 5 (1494 words) Published: January 30, 2011

Case Summary-
Vora and company of lucknow, had been in the grain business for several generations, decided to enter the business of processing and selling of quick cooking oats in the year 1959, four years after government of india had stopped importation of packaged cereal but had failed to attain profit by 1963. The company had developed trial and error method for processing, so only by 1961 company was satisfied by its product. The white oats where imported from Australia as Indian grown didn’t have all the required characterstics. The product was rated as equal or better than competing product, but the cost of imported product had restricted its sale to high-medium and high income families. Vora and company had adopted packaging, which was similar to its competitor champion and restricted United states brand quaker. In distribution, it had appointed agents, who generally were selling non-competing food products. The agents were granted 10% commission off list price while retailers were allowed 10% trade discount. The agents acted merely as indenting agents, getting orders in case of lots from Vora and company. The sales in south India i.e Madras, Kerala and Mysore had been disappointing due to inexperience of agents and sluggishness of sub agents. The pricing was done different in different sections of the country. While sales had been irregular and averaged far below the plant capacity in past 2 years The Total cost came to Rs1015, with overhead cost of Rs12.18 per 500-case sales. The monthly wage bill was Rs 900 but labour cost given was probably high as the workforce worked atleast half the time on another project. The advertising was done for some months in the major cities, which had sales representatives. But after spending Rs4000, with no apparent sales response, it was stopped.

Character Analysis-
(a)Initiator- As for years Quaker acted as the sole selling agents (b)Innovative- As, they started, and introduced the product
(c)Imported-As it is a foreign brand
Champion brand-
(a)Local Brand- as it is a Indian brand
(b)Experimental- as it did 3 years of experimental marketing ( c).Predictable- as its packaging is similar to Quaker
(d).First Indian brand to start selling quick cooking rolled oats Blossoms-
(a)Quality of the product equal or better then its competitors (b)Predictable-as packaging is similar to champion brand
(c)low innovation and creativity-as trademark and packaging along the expected lines. (d)Differential pricing-Different prices in different states (e)Inefficient use of work force

SWOT analysis-
Strength-Finest quality of the product, which equal or better than its competitors-Certified by Indian Standards Institution-Indian(local) brand-Quick cooking high lucrative meal-Can be eaten in many combinations, thus if a person does not like one variation, he/she could try other-Oligopolistic market with not many competitors-Developing market, as the market is comparatively new| Weaknesses-Product being imported is comparatively expensive ,and is restricted to high-medium and high income families-Small target market-segment-Packaging and trademark similar to its competitors-Certain agents appointed are inexperienced-differential pricing in different states-Work force not used efficiently| Opportunities--Oligopolistic market with only two competitors, can be made monopolistic in the favor of the company if acted upon aggressively, efficiently, innovatively ,etc ,as was done by quaker brand earlier.-Using work force efficiently will reduce the production cost considerably-developing market-Work-force more specialized as it has work for 2 years.| Threats--Governmental policies, such uplifting of ban on imported packaged cereals-Developing market can go either ways-Fixed margin for...
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