Reka Enterprises

Situation Analysis M/s Ramson & Co., a firm relations in chemicals, started cement paint manufacturing business in February 1985 low the firm name M/s Reka Enterprises. It was a delicate scale organisation employing 8 workers with an initial investment of Rs. 1,50,000. The inst every last(predicate)ed qualification of the plant on a single shift base was ampere-second tons pa. The production started in April. The paint was two decorative and durable. It had to be applied within one minute of arc of mixing and required constant stirring during use. It was marketed under the vane name Rekacem. The product was to be sold only in Tamil Nadu, Kerala and Andhra Pradesh. In June 1985, product was launched for sale with a hardly a(prenominal) dealers in Madras and as a promotional offer; coins expenditure Rs. 2.50, notes for Rs.5 and Rs. 10 were placed in packings of 1.5kg, 5kg and 25kg respectively. By the end of October 1985, the volume of sales was 15 tons. The details of the sales are: packing materialVolume SoldUnits Sold (Col.2/Col.1)Sales Value (appx) displace OfferedAmount spent on discount (appx) 1.5 kgmyriad kg6667@ Rs. 18.751,25,00012.5%15,625 5 kg4000 kg800@ Rs. 70.0056,00020.0%11,200 25 kg1000 kg40@ Rs. 315.0012,60020.0%2,520 -----15000 kg-----1,93,600-----29,345 The two partners, Mr babu and Mr.

Raju figured that there was stiff competition from Newcem and Supracem brands that together had a market share of over 70% in all the given 3 states and the dealers effect selling Rekacem un-remunerating as the consumers were not ready to accept an unknown brand. Hence the firm hired a Research Team in November 1985 to study the situation. It was found that: ?The substitutes available for cement paint were Distemper and Lime-wash whose appeals (material cost + service charge for two coats on a 100 sq. feet surface) were Rs. 27.50 and Rs. 10 respectively where as for Cement paint it was Rs. 70. though Cement paint was long lasting. ?The distribution system for cement paint of leading manufacturers was... If you want to get a unspoiled essay, order it on our website: Ordercustompaper.com

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