vohra case study

1. CASE ANALYSIS
VORA AND COMPANY
A REPORT
BY
ABHISHEK MALOO

2. CONTENTS…
SITUATION ANALYSIS
PRODUCT LIFE CYCLE
MARKETING MIX
COST ANALYSIS
THREATS
OBJECTIVES
ACTION PLANS

3. VORA AND COMPANY
Executive Summary
Mr. Vora’s family had been in the group business for several generations. In 1959 after the
Government of India had stopped the importation of packaged cereals, Mr. Vora and his family
decided to enter the business of processing and selling a product similar to Quaker brand of quick-
cooking rolled oats. After this the Ganesh Flour Mills of Delhi started to develop and market a quick
cooking white oats under the trademark Champion and soon it extended its distribution nationally,
devoting a moderate amount to advertising in city markets throughout India. Vora and Company
adopted a round heavy tin package similar to that which was being used for Champion. The
management had adopted the trademark Blossom. The company had been organized in 1959, had
started to sell its product nationally in 1961, but by December 1963 had failed to attain a profitable
volume of sales.
Situational Analysis
1. Product: Quick Cooking Oats.
2. Need/Want :It is to be created. Combination of need & want creates demand.
Competition is between : 1.Product
2.Generic (normal breakfast food items).
Here competitor is champion & all breakfast foods, and it is very difficult to change the habit
of the consumers, because it is a food item and also meant for breakfast which is ingested inside the
body. So changing the normal concept of breakfast food is a bit tricky.

4. PRODUCT LIFE CYCLE
Here the Oats is in a very early part of the introduction stage of PLC. Moreover the product category
comes into existence .The product is not much satisfactory and Blossom wants to get the results
quicker.As it is a new concept of breakfast for the other parts of india other than South India where it
is been adapted well by the people as a breakfast item.
Product features which will attract new consumers:
1. Nutritive factor – an important factor for customer.
2. Good to taste.-
3. Easy and fast to cook.- meant to attract the housewives.
Marketing mix or 4 P’s:
Product – The Blossom tin contained 550 grams of oats, the quantity contained in what was
thought to be the largest selling package of Champion Oats, although Ganesh Mills also marketed
a tin containing 750 grams.
Price: The list prices for Blossom Oats as of December 1963, varied by section of the country.
In North India, the list price was Rs.81 per case of 36 tins. In Bombay and South India the price
was Rs. 85. As stated previously, the product was sold F.O.R destination; the commission to
agents was 10 per cent off list; sub-agents were granted 2.5 per cent off list our of the agent’s 10
per cent; the retailers were granted a trade discount of 10 per cent off list. Thus Vora and
Company received from the sale of each case the following:

5. In North India Rs. 64.00 (Rs. 81.00 less 20%)
In Bombay and South India Rs. 68.00 (Rs. 85.00 less 20%)
Promotion: From the start of the national distribution the selling agents had urged Mr.
Vora to advertise Blossom Oats. For some months he undertook such advertising in the
major cities in which he had sales representation. After spending some Rs. 4,000
without any apparent sales response to justify such expenditure, he ceased his
advertising.
Place: To secure distribution of its products Vora and Company appointed agents, who generally
were selling non-competing food products, with exclusive regional rights. R.C. Ramanathan of
New Delhi as exclusive agents for sale of the products to retailers.This firm also handled the
products of a large and well-known firm of packaged food manufacturers.
Messrs. R.C. Ramanathan were granted a commission off 10 percent of list price. They
had three permanent salesmen covering their territory. In turn, they appointed sub-
distributors in large town or cities such as Delhi, Agra, Gwalior and Mussorie to whom
they gave 2½ per cent off list price out of their commission. Retailers were allowed a
trade discount of 10 percent off Vora and Company’s list price. Thus, the company
received from its sales, list price less 20 per cent.
Real Loss Vs Opportunity Loss
Here Champion was having high risk of maintaining inventories and bearing real loss if
the salesman cannot meet the target but there is a pressure in case of Champion as the
wholesalers are laden with inventories whereas in case Vohra the channel partners have to
give orders and wait for the consignment to arrive.
Cost Analysis
Monthly Overhead Cost
Direct cost : Rs 60/case (for ease of calculation).
Revenue per case64.809 (N.India)
75.68(S.India)
Contribution = Sales-variable cost
= Rs (66-60) = Rs 6 per case
Breakeven loss=170.
Sales= Rs 500 over per month

6. He is selling Rs 170 & half the break.
So he has loss more than Rs 3000.