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VORA and Company
Q1. Should Mr. Vora continue in this business?
Yes, he should continue in this business because of the following reasons –

 Price advantage:
Final Price – Rs. 64 (Blossom Oats)
Final Price – Rs. 79 (Champion Oats)
Blossom Oats has a price advantage as compared to Champion Oats which can be an
attractive factor to consumers in the long run. Also, it has only been 2 years since the
company started to sell its product nationally, so there is a huge opportunity in future.
 Inventory Advantage
The Champion brand has risk of inventories stocked in godowns and can be dangerous if
agents fail to meet targets whereas the Blossom Oats has no such pressure.
 Competitors
There are also very less competitors in the market with such huge customer base Vora and
Company has a lot of potential to grow
Q2. What are the major problems faced by Vora and Company?

 Pricing of product – The total cost incurred in producing a case of 36 tins off 550g each is
Rs.72 (Rs.60 fixed cost + Rs.12 overhead cost assuming 500 sales per month) whereas it is
selling the product at Rs. 64 and Rs. 68 in North and South India respectively.
 The inexperience of agents who were selling non-competing food products. Also, the states in
South India where there is a huge demand for the product, inexperienced agents were
appointed, and the region had no salesman for a period of time.
 Mr. Vohra did not make a practice to visit his selling agents and communicated with them
only via email.
Q3. Should Vora make any changes in decision concerning (i) product and packaging (ii)
advertisements and promotion (iii) Pricing and (iv) sales and distribution?
(i) Product and Packaging

 Cheap and lighter methods of packaging should be used

 The current theme on the package is like that of competitors instead of this innovative design
should be incorporated and focuses on points that stand out from what competitors already
offer. For example, the word Quick cooking oats should be written in large.
(ii) Advertising and Promotion

 It is important for Vora to effectively communicate the value of their product to the customer
 Vora should advertise their product. Vora advertised their product initially only for a very
short period despite the selling agents urging Mr. Vora to continue the advertisement.
(iii) Pricing

 Prices can be kept low for some amount of time till Vora gains some market share and then
can be adjusted
 Commissions provided to the distributors are more than industry standards and can be
reduced to cut down on costs
(iv) Sales and Distribution
 The agents and sub-agents should act as wholesale distributors to store and effectively
distribute the goods
 Hiring of an inexperienced agent in South Indian region led to very disappointing sales. Vora
should hire experienced agents in potentially high sale regions
 Constantly keeping in touch with the selling agents and obtaining feedback from them.