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Marketing Management 1: Rhino Almirahs Case
Marketing Management 1: Rhino Almirahs Case
RHINO ALMIRAHS
CASE
BY GROUP 7:
MBA08115 MUKUL
MBA08109 KUSHAAL
MBA08090 ROHANT
MBA08091
HARSHITHA
MBA08137 ISHWARI
MBA08127 NIBEDITA
MBA08087 KHUSHBOO
Summary
MR. P BASU, PROMOTER OF A SMALL-SCALE INDUSTRY UNIT, MANUFACTURING STEEL ALMIRAHS, WAS IN DEEP AGONY
AS HE WAS NOT ABLE TO SELL HIS MANUFACTURED ALMIRAHS. HE WAS UNABLE TO PAY WAGES TO HIS WORKERS. HE
HAD VERY PREMIER QUALITIES OF ALMIRAHS AS GOOD AS OTHER PREMIUM BRANDS WITH COMPARATIVELY LOWER
PRICES. MAJOR DISADVANTAGE FOR MR. BASU WAS HIGH LABOUR COST, FACTORY OVERHEAD COST AND THAT NONE
OF THE DEALERS WERE INTERESTED IN SELLING HIS ALMIRAHS. CUSTOMERS SHOWED THEIR INCLINATION TOWARDS
BRANDED ALMIRAHS INSTEAD OF BETTER QUALITY OF RHINO ALMIRAHS. DEALERS SUGGESTED MR. BASU TO
PRODUCE CHEAPER QUALITIES TO CUT OFF COST OF MANUFACTURE BUT HE WAS ADAMANT TO KEEP THE ALMIRAHS
HIGH IN QUALITY. AT THE LATER STAGE, HE WAS UNABLE TO GENERATE FUNDS FOR THE ADVERTISEMENT AND THEN
HE DECIDED TO DIVERSIFY INTO OTHER PRODUCTS THAT COULD BE MADE USING HIS EXISTING PRODUCT FACILITY.
FOLLOWING HE GRABBED TWO ORDERS FROM DEFENCE AUTHORITIES FOR SUPPLYING LID-INNERS AND CAP-ENDS BUT
INCURRED HEAVY LOSES IN EXECUTING THE ORDERS. DUE TO CHANGING DEALERS’ ACTIVITIES OF REPUTED BRANDS
MR. BASU GOT A LUCRATIVE DEAL FROM WESTERN TRADING COMPANY. LATER ON, WESTERN TRADING COMPANY WAS
DRIFTING AWAY FROM THE CONTRACT. FOLLOWINGLY, MR. BASU GOT TO KNOW ABOUT A SMALL COMPANY CALLED
ELITE NEAR HIS COMPANY, SELLING INFERIOR QUALITY ALMIRAHS BUT MAKING GOOD PROFITS OUT OF IT. HENCE, HE
THOUGHT OF OPENING HIS OWN SHOWROOM BUT SET BACK BECAUSE OF THE RENTALS, AND THEN HE GAVE
ADVERTISEMENTS IN NEWSPAPERS AND GOT GOOD RESPONSE OUT OF IT BUT THIS DIDN’T GET HIM PROFITABLE
DEALS. HE THEN CONVERTED ALL RAW MATERIALS TO END PRODUCTS AND WAS AT NET LOSS.
Cost Breakup
6000
5000
4000
3000
2000
1000
0
Rhino Premium Rhino Economy Elite
Steel (90 Kg.) Paints Hardware Consumables Labour Factory Overheads Administrative Overheads Bank Interest
SELLING PRICE
BREAKUP
Rhino Premium Rhino Economy
Net Profit Net Profit
10% Bank Interest 2%
16%
Bank Interest
14%
Total Cost Bank Interest Net Profit Total Cost Bank Interest Net Profit
Elite
Net Profit
32%
Total Cost
68%
• FOCUS ON THE TARGET AUDIENCE, THAT IS, HOUSEHOLDS, OFFICES AND SCHOOLS
• USE LEAFLETS AND BANNERS FOR LOW COST AND EFFECTIVE ADVERTISING.