Q1.Is NACCO doing well?

Give reasons
No, NACCO is not doing well and there are a lot of reasons that would state it:

 Lower market share: NACCO’s current market share is approximately 2.04% as opposed to
its competitors like Kissan whose market share is 60%, Sil with 14% and many others.
NACCO already is struggling to maintain its market share but will have to face an increase in
its competition as a Denmark-based Food Group is planning to enter India by bringing in 100
percent sugar-free product.

 Declining sales revenue: From the case we can see that NACCO’s total sales revenue has
been fluctuating in the last 3 years. Though their total sales revenue had increased in the last
year their hero product i.e. Jam is not doing very well in terms of sales revenue. There is a
constant decrease in the sales of Jam. This is a concern for the company as Jam is their main
product for which they advertise and boast about still there is a dip in the sales. They are not
able to achieve BEP also from the sales of Jams.

 Consumer Perception: According to the case a group of management inters had carried out a
perception study on various brand selling Jams which included all the major players including
NACCO. The result of which was very concerning for NACCO as they had the least
consumer preference on almost all the parameters for instance Thickness of Jam, Ease of
spreading, Brand Name, Package, Sweetness & Flavour. These factors are the major
contributor in influencing the consumers. Hence, we can say that NACCO can be perceived
as the least influential brand for most of the customers. All these factors would be considered
as negative PODs for the company which states that they have problem in their jam’s taste,
texture and packaging.

 Positioning: They don’t have any positing strategy in place for their product. According to
the consumer perception NACCO’s jam are value for money and rank high on the Richness of
the fruit. They can easily position themselves by highlighting their positive PODs which is
not happening at present.

 They have a few other problems that might be contributing to the overall sales & awareness
of their product and the brand:

 There is no dedicated marketing team in their own company. Their distributor i.e.
FADD is responsible to look after their marketing and promotions as well. Having a
marketing team of their own would have been better as they would know the in and out of
the products its features that should be highlighted, ways in which they could influence
their customers etc.
 Promotion of the brand is not efficient at all. The last time they came out with an
advertising campaign was 5 years back. They have only got one poster printed in the
women’s magazine which was neither informative not appealing.
 Their packaging also has problem as it is not appealing due to the bad choices in their
font, color and not being able to highlight what actuall should. They do not have any
small sized bottle or sachet which is preferred by their largest customer group. A sachet
could be used to gain potential customers as they would be able to try their brand
(NACCO) without spending much.
 Their distribution channel is also not in place. The have an additional level in their
channel, lower commissions are given to the retailers (hence, less incentive for him to sell
NACCO’s product) compared to the others.