Krishna Rubber Company,

1. Krishna Rubber Com.
Case Analysis
SDM, NMP Term IV
Group 5
Abhijeet Tomar - 03
Argha Ray - 15
Khushal Malik - 28
Vipin Kathuria– 59

2. Context
• KRC is a major Tyre manufacturer.
• Its market share is getting hammered all across the country.
• Ronit takes over as Regional Sales Manager of North Zone to revive sagging
fortunes.
• Chandigarh Sales executive Ramandeep is sent on exile to Rajasthan.
• Ronit reexamines decision in solitude.

3. Yardsticks:
• Arresting drop in Market Share.
• Expansion of Dealer network.
• Reduction in no. of days outstanding.
• Performance Review of Salesperson.
• RD’s loyalty.
• RD’s popularity and career stage.
• Overall Impact on salesforce morale.

4. Market and Dealer Analysis:
•
Total Market has grown leaps
and bounds. But, both Branch
target and achievement has
fallen in tandem.
•
KRC doesn't even seem to be
setting ambitious targets for
quite
sometime.
Company
seems to be very jittery in
dealing with competition.
•
Total dealers have grown but
KRC’s strategy has not kept
pace.
•
Not only RD’s but other sales
territory have not been good in
network coverage. Only last year
Pargat and Harjinder has given a
push.

5. RD’s Fall from Grace:
•
Compared to other salesperson
in branch, RD’s Sales target
Achievement percentage is
constantly falling from 2006.
•
RD’s
Dealer
Conversion
percentage is also constantly
falling from 2005.
•
Pargat and Harjinder has given a
boost to dealer conversion last
year.
•
It is also suggestive that Sales
and Dealer conversion is directly
proportional. The sharp uptick in
red line for last year.

6. More Agony for RD:
• RD’s No. of days outstanding has
always trailed Branch average.
• Historically, RD seems to have
given extra days of credit.
• In utter financial distress KRC now
doesn't seem to be in a position
for such magnanimity.
• Even Inexperienced Pargat and Harjinder
have done better than RD on all counts.
• Again last year Pargat and
Harjinder steals a march on RD.
• RD’s old habits are dying hard.
• He is not able to reconfigure himself to
changed market scenario. He has also failed
to keep his cards close to his chest.
• RD has not realized that dealers
have moved from relationship to
transactional marketing.

7. Ronit’s Riot Act:
•
Ronit seems to have taken the decision in a hurry. Hence his mental
uneasiness. He also seems sorry for RD.
•
However, he is a through professional who scouted the entire territory and
tried to base his decision on objectivity and feedback.
•
RD’s sales performance doesn't align with Ronit’s target of Dealer Expansion
and Sales revival.
•
This decision may have far reaching repercussion on the sales organization
across India and may be seen as a harsh treatment meted out to a veteran star
performer.
•
Given RD’s popularity, old timers across the sales organization may feel
insecure.
•
KRC’s performance has also not been up to the mark for the last few years.
The decision has implications of RD being made a scapegoat.

8. Decision:
•
There has been no upward mobility for RD in 18 years at KRC.
•
He has attended barely 10 days of training in 18 years. It seems that he was
never considered for grooming to take on higher responsibilities.
•
The need for Dealer Expansion was pointed out to him in 2007. But his next
two appraisals do not suggest that this objective was specifically highlighted as
panacea to his sinking sales.
•
An humanitarian consideration for his family and age was not thought
through.
•
He has constantly cribbed for additional discounts given by competitors. KRC
may not have adequately addressed those concerns for years.
•
After 18 years, it will be difficult for RD to perform in Rajasthan as well. Those
sales for KRC will also suffer apart from Chandigarh in the near term. For a
large organization as KRC he can be accommodated elsewhere. Rethink the
decision.