Situational Analysis:Surya Food Products ( SFP ) Limited is a steadfast covering with nutrient. nutrient processing and grain trade. SFP decided to set-up a roller flour factory with the purpose of selling branded whole wheat flour.
I ( Mr. Vinod Jain ) was specifically recruited in November. 1994 to fix a comprehensive program for marketing Surya Atta to be launched on first hebdomad of February 1995.
SFP entire investing on assets was about Rs. 69. 00 hundred thousand. financed on 1:2 debt-equity ratio.
Further. I was given with the following aims. To accomplish monthly gross revenues of 720 MT during 1995-96.
monthly gross revenues of 1800 MT by terminal of 1996 and set up ‘Surya Atta’ a valuable merchandise I was besides requested to place markets. publicity. packaging and concluding pricing for the merchandise.Target Market:I choose Madhya Pradesh to be the first mark market. Market portion of two national trade names Captain Cook and Trupti is negligible in this province when compared to other provinces like Uttar Pradesh. Rajasthan and Maharashtra. Hence.
our merchandise can make to wider audience in this province including the higher income group. Further. Surya Food Products have already established its trade name in Madhya Pradesh from grain concern which is turning at a rate of 10 % . Since we already have a market here. I recommend set uping our base before come ining other markets. From the available informations there would be about 132 lakhs families in Madhya Pradesh and the mark audience will be about 50 lakhs families by excepting the lower income category with less than Rs.
2000 per month.Placement:I suggest foregrounding the nutrition value and the value for money for our merchandise. In order to educate the client about the benefits of Whole Wheat Atta I recommend making a comparing chart picturing the cardinal foods along with the wellness benefits and publishing the same on the bundle.
The Merchandise:Initial launch of this merchandise will be in the ratio of 2:1:1 for 1kg. 2kg and 5kg packages severally. Since the mean ingestion of a family is about 5 kilogram it will cover most of the big section. Further. people from the hotels and eating houses will be given to purchase the larger bundle. Based on the demand the ratio can be modified in close hereafter.
The Monetary value:Based on the bing analysis the works can bring forth at a capacity of 45 MT of wheat per twenty-four hours working for approximately 25 yearss a hebdomad and expected to run at 80 % of the capacity. It can bring forth a upper limit of 765 MT of whole wheat per month along with 135 MT of bran. Based on the break-even analysis the production cost can non be less than Rs. 8/kg excepting the bran value. At the same clip the concluding list monetary value must non transcend Rs. 11/kg as it will non make the value proposition in comparing with national trade names.
After presuming the figures the production cost will be fixed at Rs. 7. 9/kg. So the sum estimated one-year gross if the rate of production is 765 MT per month would be Rs. 726 hundred thousand per twelvemonth. Further the sale of bran per annum at the rate of 135 MT per month will bring gross of about Rs.
24 hundred thousand per twelvemonth. So the entire gross will be about Rs. 750 hundred thousand which is more than the estimated net income. So. the label monetary value for this merchandise will be fixed at Rs.
10/kg.The Place ( Distribution ) :The distribution border will be fixed at Rs. 0.
6/kg and the retail border will be fixed at Rs. 1. 5/kg. I have decided to name one distributer each at territory degree. Further we can promote the distributors and retail merchants to advance our merchandise among the clients.The Promotion:Since the advertizement budget is restricted to Rs.
50. 000 per month we can non run aggressive candidacy through telecasting and print advertisement. As Surya trade name was already established in Madhya Pradesh. We can put attractive point of purchase shows at the retail mercantile establishments to pull clients. Apart from that we can administer voucher for the larger 5 kilograms packages with Rs.
2 price reduction offer on the following purchase of 5 kg packages.The Marketing Organization:I would propose that 1 supervisor and 2 salesmen from SFP would be sufficient during the initial stage as we already have a market in Madhya Pradesh and the Numberss can be increased when we expand to the new markets.Decision:Based on the above analysis and considerations I would strongly urge establishing “Surya Whole Wheat Atta” in Madhya Pradesh at Rs. 10/kg.