Document of the Month Introduced in the late 1940s, Godrej Storwel was the steel cupboard designed for homes and offices in India. Its splendid features made the brand Storwel so popular that it soon became synonymous with steel cupboards. Besides its quality and durability, the success behind its popularity also lies in the proficiency with which the sales team marketed them. The Godrej sales team always knew the pulse of consumers and kept themselves abreast of the customer's shifting preferences and the social context that influenced consumer choices. This month we bring to you a circular dated April 9th, 1954 written by R K Sanjana, the All India Sales Manager pointing out that ‘Godrej "Storwel" Cupboard has been carefully designed to combine utility and strength with an attractive appearance at a buyers economy’. And he therefore suggested that the Storwel should not be marketed just on the basis of price but the specifications, superior features and the quality that it stands for. He also offered some candid advice to his team, to know more, check out our Document of the Month.

GODREJ & BOYCE MFG.CO.LTD., Lalbaug, Parel, Bombay 12.

Ref.7o.RKS/33/13577 9th April, 1954.

Please address your reply to 'Sales' Dept.

BANGALTRE STOCKISTS:

Re: Prices Your letter •o.GB/2677 dt. 6th April, 1954.

A time has now come when your salesmen should be trained to sell on quality and not merely on the basis of price. Je have been telling you repeatedly that for a true comparison of prices there should be equality of quality; you cannot just compare the prices of two unequal things.

A superficial comparison of mere "specifications" even is not enough for evaluating a product accurately. For instance, any steel cupboard may be of a required size and gauge, may have a lock and just so many shelves etc. and may thus "meet" a given specification; and yet it may be very poor value compared to a similar cupboard which has been desied and built by those who have specialised in such manufacture and who have the necessary experience and resources for their mass manufacture on modern lines. This is exactly how Godrej . "Storwel" scores over apparently similar 3uoboards of other makes. Godraj• "Storwel" Cupboard has been carefully designed to combine utility'and strength with attractive appearance and buyer economy. It is fitted with a lock which for accuracy of work-manship, and, therefore, security, is far above the run of locks to be found on cupboards of other makers. (This is hardly to be wondered at seeinr.: that whereas others' interest in locks is incidental, lock-making is a =jor industry with Godrej.)

The body-assembly, the fittins of doors, the work on its lock-case mechanism or bolting device, are all carried out with meticulous care and tested by experts at all stages of manufacture, before the "Storwel" is passed as upto Godrej standard. The quality so worked into it can only be gauged in terms of long years of uninterrupted service, even though it may not register as an immediate merit to a layman.

This is also true of the costly antirust treatment given to all compOnents of the "Storwel" and the durable oven baked, finish given to them by virtue of Godreps uptodate pickling-phosphetising and stove-enamelling equipment. You must know that Allwyn, SteelAge and others do not give anti-rust

\ treatment to their products as we do. This is a very vital and costly process and if we 'ere to eliminate this process.

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from our products our prices would be much lower than those of other competitors. Moreover, others do not oven-bake their products for a durable finish as we do nor do they use costly paints as we do. ()cart from these factors, there is the very great superiority of our construction and of the locks used in our cupboards, stainless steel keys etc.). Do not all these factors count at all? If your salesmen were to correctly understand the superior quality of our products, they should be able to convince customers that looking to the inferiority of rival products, prices of our competitors, if at all they are lower than ours, should really be much, much lower. .

For your further guidance, a blue print is enclosed showing the constructional superiority of "Storwel" over similar steel cupboards of other makes.

You say that "Messrs. Addison & Co. Ltd. have actually marked prices which are lower by about Rs.10/- per unit on their cupboards than your current prices. Under the circumstances, we have to request you to keep the prices at least at the original levels". By cupboards we assume that you are referring to "StorWels", and since you suggest that our prices should be kept at the original levels, we again assume that you are referring to the price of our "Storwel" Cupboards. If so please note that the prices of our "Storwels" have not been altered at all and we therefore just cannot understand what you are trying to convey.

As for your statement that "there is no justification for the increase in prices uptcy 5% ", you will please do well to understand that we do not have to deal only with you and your branches but that we have our agents and dealers all over India in other parts. It may be —that , the incidence of sales tax in your State may be Rs.1-9-070 but you seem to forget that in many other places the incidence of sales tax is much higher. Besides, you conveniently seem to forget that prices of our popular articles such as "Storwels", Filing Cabinets, sacks and Tumbler Padlocks have not been increased, so that the 5 increase on the prices of other articles has to take care not only of sales tax on those articles of which prices have been increased but also on those popular articles of which prices have NOT been raised. And, the value of sales of "Storwels", Racks, Filing Cabinets. and Tumbler Padlocks is about half the value of our total sale of all products:

You may not be aware that after the recent price increase, prices of steel and other raw materials have actually gone

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up. Moreover, on account of the increased rate of Bombay Sales Tax from 1st April we have to pay more on our purchases of raw materials such as steel, paints, packing wood etc. We do not know how much longer we shall be able to maintain our prices even at their present levels without a further increase. This bein ,; the position your reference to our 'reimbursing us (i.e. you) for the payment" is not only not understood but is entirely irrelevant.

For GIODREJ & Boyce Mfg.Co.Ltd.,

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Sales Manage

is encl: 1 blue print

copy to: -All Branches, Stockists, Dealers & Showrooms (except Foreign Agents).