Analysis of case- Rashas Case

MANACC Assignment Submission

Section A- Group 11
Dheeraj Valiveti -2110061
Dhruv Gandhi -2110016
Keshavi Jha - 2110030
Sangeeth Raj - 2110044
Priyanshu Gupta – 2110045

INTRODUCTION
Rashas Originals is an organic beauty products company which sells Pain relief oil, Hair oil
and Tooth power, these are vegan products which are made organically and thus cater to
the audience which is concerned about their health and wants to use organic products. The
company wants to determine the pricing strategy of the product and wants to keep it
relative to that of the competitors

PROBLEM STATEMENT
Rashas originals wants to determine its distribution strategy as it is not yet sure to supply its
products by the means of ecommerce or by selling it to the salons and beauty parlors but
both of these chains have pros and cons as by selling it online the cost incurred would be
low, but pro is that the product can get lost in the products available online and the pro for
selling it to the beauty parlors is that the stylists can recommend and push the products but
this will increase the cost as they will have to pay more commission or they have another
option to sell on both ecommerce and parlors

COST CALCULATION
To calculate Rashas Originals costing structure we must calculate the variable cost which can
be calculated by the raw material used for production and the cost of bottles and the
variable cost is coming out to be,

Pain Relief oil: Rs. 45.59

Hair Oil: 62.5
Tooth Powder: 45.03
And then overheads are calculated which are fixed and the total for this is Rs. 530,341 and
the distribution for the same among these are
Pain Relief oil: Rs. 37.6
Hair Oil: 47.8
Tooth Powder: 17.2
And determining the profits we must subtract the selling price from the Variable and fixed
cost that shows that the company is in profits and thus the pricing strategy of the company
is optimum as shown in the excel file

ANALYSIS
The company has 3 options the first being Selling from E-commerce and the Company is
earning a profit of Rs. 28,65,954 which includes all the factors such as Referral fee, closing
fee, shipping fee etc. and the cost is calculated on that basis we have also taken wastage
into consideration which assumes that 6% of the products are either wasted or are returned
to the company.
The other option which the company has is to sell the products to the beauty parlor or
salons and the profit the company earns is Rs. ₹ 43,29,049.20 and we have taken
commissions also into consideration which is to be provided to the stylist for the
commissions as mentioned in the excel file.

RECOMMENDATION
The company must sell the products to the parlors and salons as the profits the company is
getting in this model is higher.