Declining Sales of Ravi Soap Factory – a Case Study
Declining sales of Ravi Soap Factory – A Case Study
Introduction:
One fine morning on Jan 2012 Mr. S.Singh Managing Director of Ravi Soap Factory was sitting in his office and he was worried at the declining sales volume and decreasing profits. He called upon the sales executive Mr. Manutosh Roy and Production Supervisor Mr. Satish Khurana and he said “Ours is the oldest and a well known soap manufacturing unit in this region and we have got a very good distribution network, we have the capability to produce at the lower cost than our competitors and still our sales is going down. I can’t understand this.”
Mr. Satish Khurana replied “Sir now a days due to reduction in sales level we are unable to operate at the full capacity so the cost of the product is higher so our profit levels are going down.”
Mr. Manutosh Roy said “Sir, we are trying our level best for the last two years but still we are unable to get the desired results. Now a days the customers are driven by TV advertisements they want to purchase the products which they see on TV. But still we are doing much better in rural areas so we should try to focus on covering more and more adjacent rural areas”
The Managing Director of the company is not sure what is wrong with the company and how to improve the performance of the company.
Company Background:
Ravi Soap factory was established in 1980 at Rudrapur (Terai region of Uttar Pradesh) now in Uttranchal by Mr. Ram Singh, a kirana merchant migrated from Pakistan at the time of partition. He was ambitious and hardworking and while doing kirana business in Pakistan near Lahore he developed good relationship with a soap manufacturer of Lahore and he frequently used to visit that soap factory to have an overall view of soap manufacturing business.
In 1947 during Indo-Pak partition he had to migrate to India with his family. During migration he lost everything but his family. He had to struggle hard for the survival of his
Introduction:
One fine morning on Jan 2012 Mr. S.Singh Managing Director of Ravi Soap Factory was sitting in his office and he was worried at the declining sales volume and decreasing profits. He called upon the sales executive Mr. Manutosh Roy and Production Supervisor Mr. Satish Khurana and he said “Ours is the oldest and a well known soap manufacturing unit in this region and we have got a very good distribution network, we have the capability to produce at the lower cost than our competitors and still our sales is going down. I can’t understand this.”
Mr. Satish Khurana replied “Sir now a days due to reduction in sales level we are unable to operate at the full capacity so the cost of the product is higher so our profit levels are going down.”
Mr. Manutosh Roy said “Sir, we are trying our level best for the last two years but still we are unable to get the desired results. Now a days the customers are driven by TV advertisements they want to purchase the products which they see on TV. But still we are doing much better in rural areas so we should try to focus on covering more and more adjacent rural areas”
The Managing Director of the company is not sure what is wrong with the company and how to improve the performance of the company.
Company Background:
Ravi Soap factory was established in 1980 at Rudrapur (Terai region of Uttar Pradesh) now in Uttranchal by Mr. Ram Singh, a kirana merchant migrated from Pakistan at the time of partition. He was ambitious and hardworking and while doing kirana business in Pakistan near Lahore he developed good relationship with a soap manufacturer of Lahore and he frequently used to visit that soap factory to have an overall view of soap manufacturing business.
In 1947 during Indo-Pak partition he had to migrate to India with his family. During migration he lost everything but his family. He had to struggle hard for the survival of his
References: : 1. http:// http://www.pg.com/en_IN/ 2.http:// www.hul.co.in 3.http://www.mapsofindia.com 4. http://candleandsoap.about.com.