Corporate Simulation - 2

This is a platform that businessgyan has created to facilitate industry and student interaction. By participating, students can take a fresh look at issues that managers and entrepreneurs face at work. Following is a caselette to which all MBA students in Bangalore can respond. The best 5 answers will be published in businessgyan and these students would get an invite to interact with top professionals during a Panel Discussion conducted by businessgyan. The caselette is given below.

Launching "Getting out of the rut"

"For the last 15 years, Anand's family has been manufacturing 'Ruby' Hawaii Slippers. The business has brought respect and status for them in a small town in Kerala where traditionally they had rubber plantations. 'Ruby', the brand, is recognized in their home state and is distributed throughout India through a network of distributors. In all the markets, 'Ruby' has a marginal share of less than 5%. It is priced on par with the leading brand but gives a premium margin to the distributors. The Hawaii slipper industry is crowded with a lot of players and Ruby at best is chugging along.

A sales analysis shows that most of the sales happens in semi-urban and rural markets. Even here there is constant threat from lower priced Hawaii slippers. Ruby has copied the complete range of what the leading brand offers. In all, Ruby has some eight sub-brands and only two of the brands actually make positive contribution. At the end of the day Anand and his family make just enough to clear the interest on the loans they have taken for the factory and meet their living expenses. Things seem to be in status quo but very uncertain. A lot of work needs to be put in for little result. Today a lot of changes are happening in consumer trends, preferences and new retail formats. Anand knows he needs to make changes but does not know in which direction to go. He needs an outsider's perspective on this. Anand has a 15 minute chat with you, what will you tell him?"

§ This caselette must be answered in 200 words.
§ Mail it to us at caselette AT businessgyan.net by Oct 25, 2004
§ Mention your name, college and the year.
§ The winners will be selected solely at the discretion of the judges.
§ Request for a soft copy of this caselette to be sent to caselette AT businessgyan.net

This is an initiative of businessgyan, business digest, which provides practical information required by managers across functional areas like HR, Marketing, Finance, Facility Management etc, and also industry verticals such as Biotech, Retail, IT, BPO, Manufacturing etc.

A Copy of businessgyan is available in your library.