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    Pravr Srivastav
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    KAM CASE (1)

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    1 views6 pages

    Kam Case

    Uploaded by

    Pravr Srivastav

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 6
    LOGIKART PACKAGING KEY ACCOUNT MANAGEMENT (KAM) ‘On October 18,2017, during Festival season in India, Logikart Packaging (Logika) shied base to 2 new. mnodem ofice in New Deli India. At that ime, Shyam Agarwal, the managing director of Logika, was pleased with te company's growth over the past five years—Logikat had reported revenue of € 604 hilon in 2016, «growth of 21.3 per cent over the previous financial year. Agarwal semed postive about the company’s ature and was planning forthe next five years. His postive mood dissipated, however then his son Rava dietor a the company, walked inthis offic seeming extremely concemed. Agarwal Asked his son, "Why do you look worried avi Is anything bathering you?” Ravi’ reply acquainted his father witha problem he had not been anticipating. “Have you seen the rate ‘quotation fem aur biggest clint, KLO? The company is offering a0 milion order with profit margins ‘fess than 7 per eel They want vs o suppl the eoods by December 1, 2017, but have se the payment Peto for 60 days, Ourkey scoount management needs 1 Be reworked.” In addition to KLO’s order, Logikart had € 90 milion worth of odes from other customers that had profit ‘margins of more than 10 pe eent and that wee tobe supplied on December 15, 2017. Supplying to KLO) With a lsd. payment period risked jeopardizing other orders, which could result in higher customer Aissatisfaction andthe possible defection of customers to competitors. Logikart had good customer ‘management practices in pace, with more than 80 percent of its revenues comin from repeat customers ‘One ease of concem fo the company, however, Was its overreliance on KLO, which accounted for 15 pe ‘cent of Lgikart'sburnes,and 0 other customers who made up almost 0 per ent ofthe company's al Ravi was aware ofthe woh ofa company such as KLO—and ofthe consequences of defaulting on the ‘her orders with a higher profit margin. He wanted to retain business with KLO as well 3s heep his ‘Companys eamitens tis vendors and eter customers. Now tha he fad larger buyer base of 1,700 ‘uslmers, and realizing the importance of doing well by al of them, Ravi had w consider some sets ‘questions: Would it be wiser to accept the order on KLO's term, or renegotiate the price, payment date Sin delivery scheduleto favor Logika? What processes could Logika adopt to prevent such station in fine? ‘COMPANY BACKGROUND his MBA as a gold medal ny setup BY er Ravi joined authorized sock ar ernpany in te Indian bote-trade industry to become refered glass hotles and 90 perc yleneterephialate (PET) bottles, Supply-chain systems and a diverse ws gave Logikart a cs Waren aul roduc and presi pliers ad customers, ad forge sucessful and profitable collaborations, Because more than 80 per cent of Logikart’s wed on cust pacts, as nel, restaurant, and in 2015, of which the world an ‘and 2016 Factors such a apd urbanization a surge in mid-clas consumes an organize eal secon ‘and the e-tommerce boom were all Key drivers of growth inthe Ind dom were all key drives of in the Indian packaging industry, Growth as ‘iso felled by innovations such a the development of lier packaging with tte Brier props, These changes increased the demand for new packaging formas, sich as ferent sizes, materi, sal strengths. The projections fr 2016-2021 expected the sof drink and food industries to capture te highest Packaging markt share by uni, with a share growth of 3.4 per cen an 13 per cent, respectively. Glass nd rigid plastic packaging materal were expecied to be the major share gine ith art share grt ‘907 percent and 0.6 pe cent, respectively, ding the same prio (GLASS BOTTLE INDUSTRY ‘The global pls packaging market, which was wort $5722 billion in 2017, was estimated t0 gro at 2 ‘compound annual growth rate of 45 per cen and reach $1083 billion in 2035. 2015, the Asia-Pacific (APAC) region led the market with a marketshare of 3.7 per een, followed by Europe wih a share of 285 perce Factors such s aise in disposable income ad pear acceptability of alobol consumption fueled inereased demand for glans bottle inthe APAC region. The growing ber industry in India was ‘apested to increase sales and market sharin he region, While the indy Was losing its share in resins such asthe United States and Wester Europe, was pining share in India because of greater penetration level availability Cost advantage, ligher and thinner glass products, and sustinabilly were important ‘ici aiding industry growth: plas bots were about 30 per cent lighter than they ad been inthe past ‘Seca, which resued in beter profs fr manufacturers beeauseof reduced fa material costs. Yet sss packaging was ing ring ampettion fom ter mers hat were songs, and shee © Ianufatre and tranepo. lis realy, non-corrosive nature, non permetiliy, and 2 rate of chemical interaction made was suitable packaging material for beer, sot drinks, beverages and pharmaceutical. Glass packaging ‘roured that the products inside the bats retained tel sength andr arma and Naver. fas elped preserve food and beverages fra lenge time and prevented contamination Package ss as tase 10 ‘afer not only people sheathand taste, tale environment beau as 100 pct rexlale The nrodution and growth of the arganized retail markt le to hath compton an nnovation inthe Ingian lass bote-packaging industry. Considerable uprade, and research an devclopment led 0 ee

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