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VORA & CO

• Will trial and error work?

• Poor understanding of the market- Consumer habits

- How consumers buy

• How to brand and package the product?

• Lack of understanding of role of intermediaries

• Lack of communication

• Poor sales

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VORA & CO

• Is the pricing acceptable to customers?

• Does pricing determines cost?

or

cost determines pricing

• How do you plan to communicate with customers?

• Is sales determining advertising costs?• What are the tasks involved?

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VORA & CO

SUGGESTIONS for Mr.VORA• What are his objectives

Short – term profits

vsplayer for a long haul

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VORA & CO

• Understanding customers

- Needs

- Wants- Habits

- How do they buy

- What prices are acceptable

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VORA & CO• Can you produce the product at prices acceptable to

customers?

• How would you make the product available to

customers?

• Motivational issues of your channel partners?

• What are the communication tasks?

- Message- Media

- Budget

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VORA & COShaping up the organization

• How would organization be shaped up?

• Become customer oriented

• Issues- Organization structure

- Communication

- Centralized

vs

Decentralized

• Organizing and implementing marketing effort.

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VORA & CO

• BUSINESS PLAN

• Indicates sales and profits for next 10 years

• For sales

• Projecting demand and price is necessary

• To estimate demand, consumers intention tobuy needs to be studied.

• Price acceptable to consumer

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VORA & CO

• Can Mr Vora produce the product at a cost

which is less than the price?

• Mr Vora can make profits

• Is he looking for profits in the short-term or

he is willing to wait?

• If Mr Vora’s objective is to have an ROI of 

20% from the second year, can this business

generate the same?8

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VORA & CO

• Direct cost per case(36 tins) is Rs 59.92

• Overhead cost per case is Rs 12.18

• Advertising cost is not included

• Distribution costs, advertising costs are not

included

• What is the quantity

• We do no know

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VORA & CO

• Why

• We are not clear as to what costs are

incurred in distribution?

• Where will this be made available?

• Estimation of the cost and ROI to channel

partners need to be determined.

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VORA & CO

• Similarly the promotion costs entail

• To understand the current awareness of 

prospective customers

• Effort it will require to take consumers from

awareness to action

• Mr Vora has no idea?

• How Rs 4000 expense was determined?

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VORA & CO

• If we add this to existing costs of Rs

72.1(59.92 plus 12.18) then the costs will

certainly exceed beyond Rs 80?

• Will Mr Vora be able to sell at a price of 

anything in excess of Rs 80/ 

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VORA & CO

Learning

Understanding of buyer behavior

Understanding of competition

Business objectives

Does business helps you to achieve objectivesUnderstanding of the marketing environment?

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