Abc Electronic Case Study

alphabet Electronics Ltd. A Wrong Analysis of Consumer Behavior ABC Electronics Ltd. was a federation established in 1983 by Mr. Manoj Kumar and over the days had emerged as one of the leaders in the growing segment of the electronics and foundation appliances market in India. Currently it has a market share of 30% of the home appliances market. Its product outline has been to offer a wide range, respectable from mono stereo, two in ones and sophisticated music systems to televisions, refrigerators, washing machines, ovens and cook ovens.ABCs marketing strategy to a fault included offering the to a uplifteder place products so as to match the needs and budget of the middle and speed middle classes. In 1991, Prasad, son of Mr. Manoj Kumar, took over as the Managing Director of the union. sightedness the intense competition in the post liberalization scenario, Prasad was keen to watch over the principle that once you have decided on your target customer, you come after him/her relentlessly with attractive offerings. In 1994, he developed a easy focused procession and distribution strategy. The promotion strategy involved an advertise budget of Rs. 0 crores, a special training program for the gross revenue force and offering freebies and various other sales promotion techniques. In terms of distribution, Prasad selected unshared showrooms and franchisees to display their wide range of products. The location of the exclusive retail outlets was alike selected so as to match the perceptions of the consumers as an exclusive showroom for them. However, even after two years of implementing the new promotion and distribution strategy, the sales of ABC Electronics did not pick up to the issue that the company thought it would.Prasad then directed the marketing manager to carriage a study of other retail outlets to know the trend. The results revealed that there was a change in consumers perceptions regarding purchasing consumer durables. There seem ed to be a tasting for purchasing goods from multi brand, rather than from single brand outlets. Questions 1. Where do you think Prasad went abuse in his analysis of consumer behavior? 2. Discuss the change in the case of the consumer today, as compared to the consumer five years ago.M/s. Tufleather Ltd. Tufcom Shoes For the last fifty years, M/s. Tufleather has been in the business of manufacturing and selling leather to companies which make leather clothe and other related products. In the post liberalization period, i. e. , from 1991 onwards, the company was contemplating entree the clothe manufacturing industry, primarily because the Government was giving substantial support to this industry, curiously to firms that were export oriented.With the intention of selling lieu, the company set up its take in factory with R & D facilities in Hosur, Tamil Nadu. In 1993, the companys R & D department developed a textile Tufcom, which it claimed had properties of fit out bod ily permeability, strength, flexibility and durability. The company also set up a sub unit to produce shoes with this new material and conducted test marketing to gauge the initial response. The pilot study indicated coercive consumer response.Based on the test marketing results, the company set up a large plant with a huge investment and entered into tie ups with reputed shoe manufacturers to buy the new material and make attractive shoe models. They also planned to have an in-house trained team of sales people who would tattle the shoe retail outlets and train their sales persons on how to sell shoes. Tufleather also helped the shoe manufacturing companies by providing point of purchase and advertising materials for a countrywide advertising campaign.The company developed a premium price strategy for the Tufcom material, based on the consumer perceptual process the belief that high impairment is an indicator of high quality. They felt that Tufcom offered quality that was super ior to leather in terms of durability and ease of care. After adopting a skimming pricing strategy, the company would later consider penetrating the lower priced shoe market segment. While the first year after the launch of Tufcom shoes showed positive results, sales began to fall drastically after that.Feedback from their sales team indicated that high price buyers did not get motivated by the factors emphasized by Tufleather, namely durability and ease of care. In addition, some complaints were received from buyers of Tufcom shoes that they found the shoes unusually warm. Questions 1. Where do you think the company went treat in analyzing consumer shoe buying behavior? 2. Do you think the company should identify a new buyer market, namely the lower priced shoe market segment?