Q1. Is NACCO doing well?

No, according to us they are not doing well because of the following factors:

1. Market share - In terms of market share, they really lag behind also the perception of their
various brands by consumers in most of the features is not up to the marks as compare to other
competitors.

2. Brand Value and Perception - Nacco is at the bottom in terms of brand value, thickness of
the jam, packaging, sweetness, ease of spreading, colour and flavour compared to its major
competitors. These features are some of the most important thing in terms of influencing
customers where they really have to work upon. Richness of fruits is high which if we see
would raise the cost, but their selling price is comparatively less hence profit margin.

3. Packaging - Their major sales happen through lower middle-class household, but they
have only one small size bottle of 500 grams compared to its competitors which would
affect such type of customers hence SKU’s has not been planned properly.

4. Distribution Channel and Commission - There were more level of intermediaries

between the manufacturer and consumer which was eating up the revenue in the form
of commissions. Also, the commission scheme given to the retailer was least and
wholesalers was the highest as compared to the other competitors which followed the
exact opposite approach.

5. Promotion - Very low effort has been taken in promoting the brand in the last 5 years, there is
no marketing team of their own, their distributors are the once who carry out the promotions.
The last adv they did was 5 years back with not much of information.

6. BEP and Revenue – Nacco was not been able to meet up its Break even point which was
around 61 thousand and they are at approximately 54 thousand which is very alarming and not
recommended condition. Even when it comes to the revenue, they have been experiencing
constant decline in profit margin when compared from last 2 years.