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    Case of Vora & Co

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    Jyoti Jangid
    1) In 1961, Vora & Co. began processing and selling quick cooking rolled oats in Lucknow after the government stopped cereal imports. 2) By 1963, sales were irregular and below plant capacity, averaging 83 cases per month over six months. 3) The company was losing money due to high packaging costs, unqualified sales representatives, lack of communication, and disappointing sales in South India. Changes were needed to improve marketing, packaging, and distribution.

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    Case of Vora & Co

    Uploaded by

    Jyoti Jangid
    63 views10 pages
    1) In 1961, Vora & Co. began processing and selling quick cooking rolled oats in Lucknow after the government stopped cereal imports. 2) By 1963, sales were irregular and below plant capacity, averaging 83 cases per month over six months. 3) The company was losing money due to high packaging costs, unqualified sales representatives, lack of communication, and disappointing sales in South India. Changes were needed to improve marketing, packaging, and distribution.

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    Case of Vora & co

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    1) In 1961, Vora & Co. began processing and selling quick cooking rolled oats in Lucknow after the government stopped cereal imports. 2) By 1963, sales were irregular and below plant capacity, averaging 83 cases per month over six months. 3) The company was losing money due to high packaging costs, unqualified sales representatives, lack of communication, and disappointing sales in South India. Changes were needed to improve marketing, packaging, and distribution.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    63 views10 pages

    Case of Vora & Co

    Uploaded by

    Jyoti Jangid
    1) In 1961, Vora & Co. began processing and selling quick cooking rolled oats in Lucknow after the government stopped cereal imports. 2) By 1963, sales were irregular and below plant capacity, averaging 83 cases per month over six months. 3) The company was losing money due to high packaging costs, unqualified sales representatives, lack of communication, and disappointing sales in South India. Changes were needed to improve marketing, packaging, and distribution.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 10

    BLOSSOMS- Quick Cooking Oats

    Case of Vora & Co., Lucknow


    Introduction
    • Govt. stopped the importation of packaged
    1959 cereals, Mr. Vora decides to enter the
    business of processing and selling of quick
    cooking rolled oats.

    1961 • Company satisfied with quality and


    processing equipment
    (500cases/month, 1case-36 tins of
    550gms)

    • Irregular sales with below plant


    1963 capacity. Six month period sales
    averaged 83 cases per month
    Marketing Mix- Product, Place, Price
    & Promotion
    Product and Packaging Place

    Name: Blossom Oats * Company located in Lucknow


    * Regions targeted
    * First product offered was not satisfactory Kerala
    * One case= 36 tins Mysore
    * Weight of each tin- 550 grams Madras
    * White oats used imported from Australia Bombay
    * USP- quick cooking Kolkata
    * Packaging cost was 40% of the total direct cost North regions- Delhi, Uttar Pradesh and
    * Round heavy tins Rajasthan
    * Label printed directly on tin, Blossom Oats
    * Bright green background with brand name in
    large red type at top of can
    * Phrase- “White Oats”
    Marketing Mix- Product, Place, Price
    & Promotion
    Price Promotion

    For one case, Advertising Budget= Rs. 4000/-


    Direct cost- Rs. 59.92 • Major advertising activities in major cities.
    Overheads- Rs. 12.18 (for 500 cases) • Promotion through sales representatives.

    Selling Price-
    For North Regions- Rs. 81/case
    For South Regions- Rs. 85/case
    Distribution channels - Commission
    North India
    Commission of Commission of sub Retailers Trade Amount received by
    agent agents Discount Co.
    10% of list price 2.5% of Agent’s 10% trade discount 81- (8.1 + 8.1 + .
    Commission 2025)
    Rs. 8.1 0.2025 paisa 8.1 64.59

    South India
    Commission of Commission of sub Retailers Trade Amount received by
    agent agents Discount Co.
    10% of list price 2.5% of Agent’s 10% trade discount 85- (8.5 + 8.5 + .
    Commission 2125)
    Rs. 8.5 0.2125 paisa 8.5 67.78
    Problems-
    • Lower sales than expected.
    • No definite data regarding volume of sales.
    • Similar packaging to competing tin of Champion oats.
    • Packaging cost was 40% of the total direct cost.
    • Sales representatives were not qualified.
    • No warehousing facilities with the agents.
    • No ISI certification.
    • No proper communication between Vora & co. and the selling agents.
    Profit/ Loss calculation-
    • Total direct cost = 29,960 (59.92*500)
    • Total overhead cost = 6,090 (12.18*500)
    • Total cost = 29,960 + 6090 = 36050

    Selling price for all cases = 33000(66*500)

    #since southern region sales were disappointed, we have taken average.

    Profit/Loss = Total revenue – Total cost = 33000- 36050 = (3050)

    Total direct cost 29,960


    Total overhead cost 6,090
    Total cost 36050
    Selling price 33000
    Profit/Loss (3050)
    Recommendations-
    • Improvement in packaging to reduce packaging costs and have differential packaging
    from Champion Oats.
    • Other packaging measurements other than 550 grams.
    • Vora & Co. should focus on advertising and have proper supply chain.
    • A definite commission and incentive plan should be laid for agent and distributors.
    • USP “Quick Cooking” should be highlighted.
    • Mr. Vora should have personal meetings with the distributors and retailors for better
    communication and provide them incentives if sales target are achieved.
    • Concentration of marketing efforts in South India, and appointment of experienced
    agent.
    New packaging
    • The oats can be packed into corrugated boxes to reduce the overall packaging cost.
    • The box should highlight the housewife theme as this product was appealing to them.
    This can encourage preference in choosing the item from the stores.
    Conclusion-
    • Mr. Vora should continue the business as 3 years of time is very short to judge about
    the continuity and profit of business.
    • Since, there are only two companies producing and selling ready to cook oats in
    India, the profit margin and market capture is vast.
    • The company needs to get the product certified with ISI trademark and have an
    innovative packaging with attractive advertising ideas to reach maximum count.
    • It can also be understood that the product quality and taste was good and better than
    the failed previous experiments. The Co. needs to compare between the quality of
    BLOSSOM & CHAMPION to undertake changes related to the product quality.

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