Case

Presentation
Ajanta Packaging
–
Key Accounts
Management
 • INTRODUCTION AND SUMMARY

• QUESTION 1

• QUESTION 2

CONTENTS
• SWOT ANALYSIS
•
• QUESTION 3

• QUESTION 4

• CONCLUSION
 • About ajanta packaging

• Indian packaging industry

• Glass bottle industry

INTRODUCTION •
• Challenges faced by the indian glass industry

AND SUMMARY • Key account management at ajanta

• Key accounts

• S.F. Foods and ajanta packaging

• Case problem
Q1. What are the possible
ways of segmenting
Ajanta’s customers?
Revenuesu Prompt players and
late payerspayers

Product Organization
Class/Product usage Size
Q2. What is KAM(key account
management)? Discuss
different stages Ajanta could
adopt for KAM.
 • Involves working closely with multiple
business departments to maintain and
further develop the relationships with the
key accounts.
• Ensures long-term development and
retention of strategic customers.
• Drives the profitability of B2B companies.
• Strong word of mouth in the market.
• Plays an essential role to maintain and
groom the company’s accounts for long
term success.
KEY ACCOUNT
MANAGEMENT
 • An overall understanding of each account
and collect all the relevant inputs.
• Effective segmentation based on the inputs
and prioritize accordingly.
• Identification of the key decision-makers
STAGES OF KAM and influencers.

THAT AJANTA • Defining realistic objectives for each of the

key performance indicators measured in the
SHOULD FOLLOW analysis.
• Build an impactful account plan based on
the previous steps and allocate new
resources accordingly.
 STRENGTHS

• One of the primary glass bottle suppliers.

• Net sales realization yields are good.
• Excellent distribution network.

SWOT Analysis • Offers Just in Time supply to customers via multiple

locations.
• Quality-focused, Customized and Timebound
packaging.
• 90% Repeat Customers: Focus on customer retention.
• Wide range of products and professional expertise.
• Entered the food industry as well along with the
pharmaceutical industry.
• Increased its customer base to 1700 customers in a
short period.
 WEAKNESSES

• 95% business from glass products alone.

• Increasing number of competitors in the industry
• Rising cost of raw materials

SWOT Analysis • Less Profit margin in huge orders

• Price wars
• Churn rate lower to that of its competition
THREATS

• Rising demand of PET: Substitute for glass bottles.

• Compromising on other deliveries due to SF’s order.
• Increased R&D Costs due to the innovation in the industry.
• Increased inflation leading to higher price of raw materials.

OPPORTUNITIES

• Low threat of new entrants as companies are recognizing

the decline of the glass manufacturing industry.
• Use environment sustainability to create edge over its
competitors.
 Q3. Why did Ajanta
continue its relationship
with SF?
 - SF’s majority of share is held by Ajanta
which is around 60%.
- Ajanta was concern about the over-reliance
on SF.

Why did Ajanta - Ajanta was struggling to maintain its

business relationship with SF although it
continue its promised a sizeable business.
- Ajanta has always received big bulk of
relationship with SF? orders from SF and the current order is
around INR 50 Million R 50 Million
Q4. Discuss the importance
of CRM strategies for the
company like Ajanta
What Is
CRM ?

This Photo by Unknown Author is licensed under CC BY-NC

 Increase Retain
Sales and Customer
Margins s
Importance of CRM
strategies for
AJANTA Increase Brand
Brand Positionin
Loyalty g
 Direct/tangible effects of CRM;
 
• More sales realized
• Products with high quality

Indirect/intangible impact of CRM;

 

SOME CRM • Good reputation

• Sustainability

STRATEGIES Some CRM recommendations

•Relationship Selling dividing customers

•Consultative

•Feedback mechanism

•Integration tool
 ( 2016 in dollar)
•Ajanta’s total business = 604
•SF Share ( 15 %) = 90
•Profit margin = 6.3 – int on late payments

Loss on ajanta order = 50*7% = 3.5

CONCLUSION Loss on other party order = 90 *10% = 9

Alternative solution
- negotiate with SF
- SF is strong client with scaling possibilities
- State examples of other big players with 10%
margins like Veeba etc
- State numeric loss occurred on last order from
SF due to delayed payment