Conflict at Acme Ltd.

Conflict at Acme Ltd.

The V.P(S&M) of Acme, Mr. Sinha, is in a dilemma.

Mr. Gurunath, the Marketing Manager has just conducted a market research and his
recommendations are as follows:
1. Increase the price across the board by 5% as the customers find their products
superior than that of their competitors.
2. The Advertising budget should be increased by 5 %. The increased expense
should be offset by cutting the retail margins by 3%, since the pull factor due to
the advertisement will force the retailers to necessarily stock & sell their
products.
Conflict at Acme Ltd.
However, Mr. Chaturvedi, the Sales manager had the following observations:
1. No member of his sales team, who were close to the customers & retailers,
were consulted or used in the study. They may have provided valuable inputs.
2. He explained that Acme was known for its quality goods at competitive prices
and any increase would erode the image and thus benefit the competitors.
3. Reduction in retailer’s margin would antagonize the trade and they may not be
as positive as before in pushing their products.
4. Lastly, the pull factor due to ads could take some time to take effect and may
have an adverse impact on sales.
Conflict at Acme Ltd.
As the Vice President of the company, how should Mr. Sinha handle this?

1. He has to resolve the differences between his two senior managers.

2. He has to take a decision about the implementation of the new policies.
Group Assignment 01
One Page analysis of the situation to be submitted by 23/11/2020
• Your decision(s) – presented in clean slides
• Points: 10
• CR will zip all the submissions and mail the file to me.
• Please indicate group number PRN and names clearly in your submissions.