SKG Final Presentation

7/31/2019 SKG Final Presentation

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CASE-STUDY


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Kaushik Ganguly [03]

Chiranjib Rudra [05]

Sandip Ghosh [22]

Avash Chakraborty [17]

GROUP MEMBERS

Arghya Basu Adhikari [41]

Sanjay Ghosh [11]

Tathagata Ghosh [31]

Nirmal Yadav [07]

Anthony Gomes [13]


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Case Study

Company Profile:-

Product:-

Challenges Ahead:-

Market Competitor:-

Synthetic Pencil Manufacturing Company.

Wood-pencils

Financial Crisis due to variations in

monthly sales figure.

Ballpoint Pen manufacturing company.

The purpose of the case study is to analyze the causesbehind the failure of the Synthetic Pencil Manufacturing

Company. So we have highlighted certain major points

which is responsible for the financial crisis..


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1.Ballpoint pens has attractive colours andcomparatively less price .

2.The marketing & sales team are ineffective regardingmarket trend as they are satisfied without assessment .

3.Increase in price of wood causes declining quality dueto the usage of hard-wood instead of soft-wood.

4.R&D Team has developed variations in existingproduct, additional features along with new products inline.

5.The Corporate Management is not sure about the

forecasting of sales analysis.


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Case Study

From the case study we need to investigate and report onthe following questions:-


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From the given data references we can write:-

Serial

No

Months

(t)Sales

Ytt*Yt t2

1 120 120 1 2 125 250 4 3 180 540 9

4 100 400 16 5 90 450 25 6 80 480 36 7 130 910 49 8 110 880 64 9 60 540 81 10 130 1300 100

11 170 1870 121 12 150 1800 144 78 1445 9540 650

42.12012/1445/ nYY t

From the above table we can say that: -

5.612/78/nttand


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From the given data references we can plot the below graph:-

Graphical Representation

Months

0

1020

30

40

50

60

70

80

90

100

110

120

130

140150

160

170

180

190

1 2 3 4 56 7

89

1011

12

Months

(t)

SalesYt

Market

Trend for

Synthetic

Pencil

Company.


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Now as we know by the Regression Analysis of time series

we can express the forecast equation as,

.0

tbbTtt

l

t

b

b

T

0

Trend Value of sales in time t

I n t e r c e p t o f t h e t r e n d l i n e

S l o p e o f t h e T r e n d l i n e

Again we know for computing the values of & we may write:-0b lb

ntt

nYtYtb

tt

l/)(

/)(.

22 tbYb l0&

t

Y

n

Yt Actual value of time series in period t

No. of periods

Average value of time series

Average value of time


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Actual trendSo from the table putting the values we get:-

.)(03.1

143

5.147

507650

593929540

12/)78(650

12/)144578(95402

approxb

b

l

l

So for we get,0b .)(73.113)5.603.1(42.1200 approxb

So the trend line equation of time series analysis, we get:-

tTt

03.173.113

Therefore the actual trend of the market as is reflected by sales we

can say is very slowly uprising (as value of is very small but

positive).l

b


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Forecast for the next three months are given below :-

18.129)1503.1(73.113

15.128)1403.1(73.113

12.127)1303.1(73.113

15/

14/

13/

tt

tt

tt

T

T

T

010

20

30

40

50

60

70

80

90

100

110

120130

140

150

160

170

180

190

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Monthly Sales figure

in Lakh


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If the trend is upward

If the trend is uprising then by spending money on product improvement,promotion, and distribution the firm can capture a dominant position. It forgoes

maximum current profit in the hope of making even greater profit in the next

stage.

The firm uses several strategies to sustain rapid market growth as

long as possible. These strategies are as follows:-

Improving product quality and adding new features and improved

styling

Adding new models and flanker products

Entering new segments

Increasing distributing coverage and entering new channels

Shifting from product awareness to product preferences

advertising

Lowering prices to attract the next layer of price sensitive buyers


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If there is a possibility of reaching the decline phase.In decline stage the symptoms are like

Decline sales

Low cost per customer

Declining profits

Laggards are targeted Declining competition

In this stage the company should take the below steps:-

Product : Phase out weak items

Price : Cut priceDistribution : Use selective distribution : Phase out unprofitable

outlets

Advertising : Reduce to level needed to retain hardcore loyalist

Sales Promotion : Reduce to minimal level


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SWOT ANALYSIS

Strong Brand Loyalty

Experience

Active R&D Centre

Wide Product variation

Quality Compromise

Inactive marketing team

Puzzled Management

Huge market Potential

Diversification

Cheap ball point pen mfgrs

Financial crisis

S W

TO


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Conclusion

They need to concentrate on following four things :-

CustomerReduce No. of customer complain

Increase customer satisfaction

Identify target customer and market segment and measures the companys success inthese segments

Focus on Internal Operation -

Product Innovation

Reduce New Product development time

Increase yield

Financial -Reduce cost in key areas

Increase revenue generation from new products

Learning -

Proper training for employees for their advancement

Increase employee satisfaction


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Henry Ford

A market is never saturated with agood product, but it is very quickly

saturated with a bad one


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TANDEM GROUP

Documents

SKG Final Presentation