Utkarsh Chaturvedi

PGP/23/426
Case: Vora and Company

Question 1
Should Mr. Vora continue in this business?
Mr. Vora should continue in the business of making quick cooking white oatmeal because of the
following reasons:
1. The demand for the product is there in market as is evident from the fact that Quaker Oats had
moderate volume of sales and sales of Ganesh Mills’ Champion
2. Wider Customer base as compared to Quaker oats: Quaker oats was imported from outside and
hence had high price (due to import duties), Vora and Company’s oats will be cheaper because it
is locally made hence it can cater to even people with lower income.
3. Product is appealing to the customers because of its features like:
a. Taste
b. Quick cooking
c. Less care required while cooking
4. A lot of investment has already been done in setting up infrastructure and getting ISI certification
5. Less competition: only one major player in the market

Question 2
What are major problems faced by Vora and Company?
Major problems faced by Vora and Company are:
1. Sales figures have been below the manufacturing capacity
2. Sales agent with no prior experience in selling packaged foods in the area with maximum
consumer base
3. Rival brand (Champion) has ISI certification while they haven’t yet received ISI certification
which is crucial for their advertising
4. Rival brand offers oats at a cheaper price (per gram cost for 750 gm Champion Oats is lesser than
per gram cost of Blossom Oats)
5. Their manufacturing cost exceeds selling price

Question 3
Should Vora make any changes in decisions concerning:
1. Product and Packaging: Some recommendations for changes in this are:
a. Should start making cans of 750 g as well, in that way they can decrease per gram
manufacturing cost of oats by ~30% and hence compete with the price of 750g Champion
Oats
 b. Redesign packaging: Currently their packaging looks like a rip-off of Champion oats with
only one difference. They should make the packaging more attractive so that it stands out
from Champion oats
2. Advertisements and Promotions: Some recommendations for changes in this area are:
a. As the oats are liked by common man (housewives etc.) they should create an
advertisement that represents Blossom oats as a part of common man’s lifestyle (eg: the
Malboro man ad campaign by Malboro, ‘daag acche hai’ ad campaign by Surf Excel)
b. To increase market share and attract customers, they can bundle their product and sell.
Eg: Buy 2 750 g cans and get 1 550 g can free. They can also provide discounts like: 30%
off on every third purchase so that buyers are inclined to buy more
3. Pricing: Some recommendations related to pricing are:
a. They can increase the price after they receive ISI market so that the difference between
manufacturing price and selling price is bridged.
b. Once they have captured decent amount of market, they can increase the price further to
make their product profitable
4. Sales and Distribution: Some recommendations related to change in strategy in sales and
distribution are:
a. Switch to Wholesale Distributor model: Currently sales agents are not acting as
wholesale distributors rather they merely take orders in case lots from retailers for
shipment by Vora and Company. Following whole sale distributor will help them achieve
two things:
i. Quicker delivery to any retailer in the territory of distributor
ii. Distributor will push to finish selling his stock
b. Incentivize sales for distributors / agents: Following an incremental model of commission
like: first 50 units of sales at 5% commission, next 50 at 7%, next 100 at 8%. So that
agents or distributors are motivated to sell more units
c. Creating a personal connect with selling agents rather than connecting them over mails