Decision Report

Objective
To prepare a marketing plan to maximize the profit margin of Gluco One
SWOT Analysis

Strengths
-Capacity utilisation in 1995-96 was very high at 90%.
-Market leader in terms of technology and product quality
-Has long business relationship with organized customers.
Weakness
-Higher costs as compared to the competitors
-Quality requirements are not met (unclean tankers, leaking drums)
-Delivery of products not carried out on time
Opportunity
-Possibility of entering the beer market
-Confectionery market is growing at 4-5% and Pharmaceutical market at 8-9%.
-Better capturing of the South market where demand is more than the supply
Threat
-Highly competitive market and more than 50% of sales are in unorganized
sector which is price sensitive.
-Product is very bulky and storage/transportation costs are high.

Marketing Plan for Gluco-1
Pricing
Have different pricing strategies according to the quality requirements of the
particular sector. This can also help to counter the effect of increased costs due
to input price rise.

Distribution
Improve distribution channels and ensure dealers strictly follow the dispatch
schedule

Promotion
Increase communication with clients: collect feedback regularly and inform them
about price changes

Product
-Better quality MS drums should be used for packaging for small lots
-Enhance quality monitoring processes: keep a check on cleaning of tankers used
for supply to large customers to avoid rejection

Customer
-Target the unserved beer market
-Increased focus towards organised sectors as their quality requirements match
the company’s strength
-Concentrate on larger orders: 70% of the current customers contribute only
26% to the sales. The large order customers(>1,00,000 bill amount), although
just 13% contribute 46% to the sales.

Marketing Strategy

Objective: To increase the profit margins of liquid glucose.
Justification: Given last year’s sales, projected increase in market size and increase in
unorganized confectionary sales due to the shut-down of Tapioca-based units, the
demand for liquid glucose is projected to be higher than its capacity of 16000 Tonnes.
So, there is no scope of increasing sales and increasing profit margins will be the
objective.

Target Customer Segment:
Due to high price sensitivity and the presence of retail agents, the margin of the
product sold to unorganized and unbranded sector is quite low. The quality demands
of the Pharmaceuticals sector are not being met currently and would require increased
costs in packaging, delivery and product quality which will affect the margin. So, the
focus should be on the organized confectionery segment (where margins are higher
due to distribution through tankers) as well as branded unorganized confectionery
segments.
Value Offer
Organized Confectioneries
Values Sought:
- Timely delivery and quality of product are of the highest importance to this
segment of customers.
- Tankers sent to the larger companies were not always clean and were allowed
into the premises only after being cleaned.

Plans for satisfying the values sought:
- Feedback on A-One’s product quality and services are quite positive.
- Certain standards of basic hygiene and cleanliness have to be maintained. A-
One needs to periodically inspect the tankers and possibly fine the transporters
if found to be dirty.
- A-One’s long presence in the business and association with companies of this
segment gives it a unique advantage over its competitors.
- No specific changes need to be made in order to meet the values required by
customers of this segment.
Branded Unorganized Confectioneries
Values Sought:
-These customers are quality conscious and not very sensitive to price changes

Plans for satisfying the values sought:
-Identify Unorganised branded confectioneries in the visinity of Avon’s
production unit through the retail agent network.
-carry out distribution to the smaller customer only through the agent.