Survodaya Private Limited

8/14/2019 Survodaya Private Limited

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SURVOD YPRIV TE LIMITED

JUNE1955 , the company was appointed by a foreign oil

company as an exclusive distributor for bottled gas & stovesin udyannagar city (gujrat).

Mr. Kailash Chandra director of Survodaya Private Limited

(SPL)

Mr. Ramachandran sales organizer for the promotion of

the product of SPL


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PRODUCTBOTTLED GAS

Bottled gas was used through a specially design gasstove

Gas stove was supplied by oil companyA rubber tube connected the stove with the cylinder

The burner in the stove had several small holes throughwhich gas could be lighted with a match after thecylinder valve had been opened & a switch on the stoveturned on

The amount of gas released could be regulated throughthe switch

To put off the stove , the burner had to be switched off& the valve of the cylinder closed


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PRICEGujrati Family - 4 or 5 members

sagadi / kerosene stove - 12 to 13 Rs./month

Cylinder price - 19 Rs.

The user had to purchase a gas stove priced at 100 Rs. + 25 Rs. (deposit) = 125 Rs.

Kerosene stove & sagadi 15 to 20 Rs.

Latter about 2 to 3 Rs.


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PL CEBecause of the high initial investment &increased operating cost

Limited market in Udyannager

families earning more than 500 Rs. / month

Potential customers , having cars or telephone

12,000 families > 500 Rs./month ( local newspaper )

Ramchandran made a list of 5,000 families ( havingcars / telephone )


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PROMOTION In november 1955 Ramchandran sent a sales letter

to each of them & advertised in local news papers

Ramchandran also started calling on a few families to

SPLs office everyday & explained

Arranged demonstration in important areas of the city societies having Cooperative housing activity

Womens organizations 1015 women came to each demonstration

In his advertisement , circular letters &

demonstrations, he tried to make clear that the useof gas was as safe as any other fuel


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Ramchandran spent 6 months promoting theproduct and booking orders for later deliveries

After 6 months , he got his first supply of stoves &

gas cylinders and started delivery and installation

With in 9 months he had 1,100 users in the town

Users who experienced any difficulties with the

product could register their complaints with SPls

office


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M JOR PROBLEMS Stove supporters

Stove burner

Constant attention

More matches

Apprehension about gas

No reserve capacity


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CONSUMER BEH VIOR Cultural factors

culture , subculture , social class

Social factors reference group, family, roles & status

Personal factors age & life cycle, occupation, life style, economic

situation, personality & self concept

Psychological factors Motivation, perception, learning, beliefs & attitudes


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Stove suited to flat surface , gujrati families didntuse flat surface to cook

Very thin chapaties, fell in to the space between

the supporter

Certain gujrati dishesi.e. kichari

Constant attention require

Purchased 3 matchbox instead of 1


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Fear fire & explosion

Believed that gas was poisonous

Elderly women opposed ittargeting to young

women who didnt want to use coal as a fuel for

fear of spoiling their hands & clothes

Religion culturei.e. Vaishnava community


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CTIONS TO SOLVE PROBLEMS

manufactured a ring to fit the supporters of the stoveprice of ring - 1.50 Rs/piece

Manufactured New burner having central flame -price of burner - 13.50 Rs/piece

Explained in sales letters gas was non poisonous & non intoxicating

Care should be taken in operating the stove

Appointed sub-agents to take on the work of quickdelivery of cylinders to users located near them Spl got commission of 3.37 Rs./cylinder from parent

company & pay 1.75 Rs./cylinder to subagent


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Subagents maintained a number of facilities

Showroom

Telephone

Satisfactory storage

Godown facilities

vehicles

Staff - clerk & delivery boy

This was the first time that bottled gas

stoves were to be put on the market in


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Documents

Survodaya Private Limited