teekha spices

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    Teekha spices

    caseAASTHA GUPTA PG20111073AMANPREET SINGH PG20112057

    ANGAD BHATIA PG20111027

    ANU GOYAL PG20111087

    ANVIT VYAS PG 20111213

    ARUNIMA GUPTA PG20111016

    NEHA SIDHWANI PG20111013

    GROUP 1

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    CASE SNAPSHOTS Teekha spices has strong presence in spices market in India. It is a well establish

    brand. Its products have AGMARK rating of purity.

    Company has decided to enter rice business in North India with Khushbu brandname.

    After 2 years of being in rice business, it sells only 100 tons per month. Whiletotal market size of branded rice in whole India is 45,000 tons and sales of IndiaGate, biggest player is of 6000 tons per month.

    TSL does not have proper quality control system to check the quality of rawmaterial.

    It sells new rice instead of old rice.

    It has charged premium price which is not according to the quality it provides.

    Its sales force is not well informed about the product and lacks proper training.

    Stockist in A & B category has refused to support Khushbu brand while stockiestin C & D category are being able to sell only 200-300 kgs per month.

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    PROBLEMDEFINATION1) Improper market survey: lack of information like quality

    demanded, price range, old rice & new rice, how to buildbrand equity.

    2) Improper identification of STP:

    )have not identified that out of total market size of 45,000 tonsper month, how much is the size of north Indian market.

    )have not identified which socio economic class of people they

    want to target. Providing poor quality with premium pricing.

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    Lessons learnt from TSL on the distribution of a newproduct with enormous potential

    Khushbu wasnt able to match teekha spices image.

    Lack of quality standards of their rice.

    Preference for old rice among the Indian households.

    Salespeople to be well versed with the brand and be loyaltowards it which they are not presently.

    Understand the consumer preferences better.

    For stockists of A and B category, who are not interestedin keeping their rice, they should provide them with extracommission.

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    Ways in which TSL can make a success in rice by usingits distribution network

    1) Proper utilization ofChannel Information System to gather information like

    pricing trend, tracking competitors, market size, consumer preferences.

    2) Teekha spice should go forExtensive distribution system.

    3) Designing monetary & non monetary rewards system for distributors.

    4) Sales manager should motivate its sales team, give them propertraining andinformation about the new product and design reward & incentive system forsalesmen.

    5) Teekha spices should implement Feedback Mechanism to improve on itsproduct.

    6) Teekha spices can go forpromotions and advertisement to increase the demandof its product.

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    Should TSL exit the rice business???????

    It should develop and maintain its brand Khusbhu using its

    current distribution channel.

    1) It could conduct a propermarket survey to gather informationlike customer preferences, pricing trends, competitors offering.

    2) It could improve upon the quality of its product.

    3) It could charge prices according to the market price.

    4) It could give propertraining to its sales force.

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    Learning from

    the case1) Collecting information from channel Information System,analyzing it properly to make a decision.

    2) Company should properly segment and target the market.3) Brand equity is not enough to sell the product in market.

    Price should be according to the customers reach and qualityshould be up to mark.

    4) If a company wants to launch a new product and wantsdistributors support, it has to offer some monetary & nonmonetary rewards to distributors.

    5) If company wants to launch a new product it has to create itsawareness first by advertisements and sales promotions.

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