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    Case Study 1

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    Khoa Trương Vũ Uyên
    case study in sale management

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    Case Study 1

    Uploaded by

    Khoa Trương Vũ Uyên
    6 views3 pages
    case study in sale management

    Original Title

    CASE STUDY 1

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    © © All Rights Reserved

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    case study in sale management

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6 views3 pages

    Case Study 1

    Uploaded by

    Khoa Trương Vũ Uyên
    case study in sale management

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CASE STUDY 1

    Yet another poor year... Profits down by 15%, sales and turnover static in a market... reckoned to
    be growing at a rate of some 20% per annum - these are the words of Ajay Kapoor, Senior
    Executive of Mephisto Products Ltd. Kapoor's concern is that the company may be out of
    business if the next year turns out to be as bad as this.

    Mephisto Products produces a range of sophisticated electromechanical control devices. Major


    customers of Mephisto Products are chemical processing industries. The control devices are
    fitted to the chemical processing plants in order to provide safety and cut-out mechanisms to
    prevent anything hazardous during the manufacturing process. The products are sold through a
    national sales force of some twelve people. Each operates in a different area of the country and
    all are technically qualified mechanical or electrical engineers.

    The company believed till now that if the product was right, i.e., well designed and manufactured
    with a high level of quality, there would be a market. Therefore, very little advertising and sales
    promotion was carried out. The assumption was that the product should sell on its own.

    Pricing of the product was done on a cost-plus basis with total cost being calculated and a fixed
    percentage added as profit. Prices were fixed by the accounts department and sales had no say in
    how they were worked out. This led to much dissent among the salespeople and they constantly
    argued that prices were not competitive, and if those were not reduced, sales would decline
    substantially.

    There were also very few discounts given to big buyers. Here again, the salespeople had to get
    all such discounts first approved by the Accounts Department. In the matter of discounts, the
    company's old philosophy prevailed: 'Why offer discounts for large quantities if they did not
    want that many, they would not order them."

    Delivery periods were slow in Mephisto compared with average in the industry. Here also, the
    company's old philosophy ruled: “If they want the products badly enough, they will wait for it.”

    Marketing has become much more competitive now with many new entrants particularly from
    foreign countries coming into the Indian market. Many of those new entrants have introduced
    new and upgraded products. These new products are seen by many buyers as technically
    innovative. But Mephisto has been ignoring product life cycles expecting that customers would
    come back to their products.

    Kapoor is worried about the developments over the past five years and there is need for changes
    in the company. He is aware that the more successful new entrants have introduced a marketing
    philosophy into their operations. But Mephisto's Sales Manager, who is expecting to be shortly
    made Sales Director, is of the view the marketing is suitable for a baked beans manufacturer, but
    not for a company engaged in the manufacture and sale of sophisticated control devices for the
    chemical industry. He argues that Mephisto's customers would not be swayed by 'superficial
    advertising and market ploys'.
    Case Question Is Mephisto Products' sales and marketing approach responsible for the
    company's sinking situation? While explaining this, also comment on Mephisto's (a) marketing
    orientation, (b) marketing mix application and (c) product life cycle.

    Suggest solution for the case.

    What title do you think the case shoud have?

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