AJANTA PACKAGING:

KEY ACCOUNT MANAGEMENT

Group 1
1. Harshini S
2. Madhurima Dutta
3. Eshwar T M
4. Kalyani
5. Guroubaran
 Summary of the Case
• Ajanta is a company that supplies bottles, vials, and
jars to pharmaceutical companies and
manufacturers of FMCG and glass bottles to large
liquor and wine companies.
• S. F. Foods is a company that have been in a long-
term relationship with Ajanta since 2001.
• On Oct 18, 2017, Ajanta had received an order from
S. F. Foods worth Rs. 50 million with a profit margin
less than 7% and want the order to be supplied on
Dec 1, 2017. And has set a time period of 60 days.
• Ajanta also has other orders worth Rs. 90 million
with profit margins higher than 10% that are to be
delivered on Dec 15, 2017.
• The case is about solving the dilemma of
Deepanker whether to not take up the order from
S. F. Foods or to renegotiate with them on the
term.
1. What could be the possible way of
segmenting the customers of Ajanta
Packaging?
• From Exhibit 2, we can see that the share of Food companies have been increasing
from 2015 to 2017.
• The share of Pharmaceutical companies have been slightly decreasing through the
years but has been high when compared to Food companies.
• Other segments share have not been great through the years and seem to be
decreasing.
• Therefore, Ajanta should give most priority to Food companies followed by
Pharmaceuticals and others.
• Even though the share of Food companies is less than that of Pharmaceuticals,
their share is increasing unlike Pharmaceuticals.
• We can Segment the market on the base of if they are “Glass Base” or “PET Base”.
• We can segment and find customers who are placing unique orders as such orders
got potential to convert huge sales and help the company reduce dependency
over old Key account who might default in payment on time.
 2. What is key account
management?
Discuss the different strategies
that can be adopted by Ajanta
Packaging for key account
management?
• Key account management is the process of planning and managing a
mutually beneficial partnership between and organization and its most
important customers.
• What Ajanta packaging company can do is come up with revised terms
and condition which should explicitly mention that there should be a fixed
repayment period failing to which they will charge some interest amount,
or they will subsequently demand hike in their profit margin as its lower
compared to their standards.
3. How did Ajanta Packaging
and S. F. foods relationship
evolve over time?
• Ajanta’s 15% of revenue comes from S. F. Foods.
• And S. F. Foods had been purchasing bottles from three
companies out of which, Ajanta’s was the majority share of
about 60%.
• Ajanta is doing business with S. F. Foods for a profit margin of
less that 7%.
• S. F. Foods began making payments after 60 days of delivery
and sometimes even as late as 90 days. Usually, Ajanta
expects the payment to be done within 30 days of delivery.
• The relationship doesn’t seem going well between the both.
 4. Why did Ajanta Packaging
continue with the relationship
with S. F. foods?
• Ajanta is continuing to do business with S. F. Foods
because they alone contributed to around 15% of
Ajanta’s revenue.
• S. F. Foods is also one of the oldest customers of
Ajanta who are buying from them since 2001.
• Ajanta was doing a good business with S. F. Foods in
terms of numbers in order.
• SF bought bottles from 3 companies , but major
share( 60%) went to Ajanta.
 5. What should Ajanta
Packaging do with the recent
order of S. F. foods?
• Ajanta should negotiate with S. F. Foods
that they should make their payment
early this time i.e., within 30 days.
• If this negotiation turns out to be a
success, then Ajanta’s profitability will
increase.