Abc Electronic Case Study

ABC Electronics Ltd. A unconventional Analysis of Consumer Behavior ABC Electronics Ltd. was a association established in 1983 by Mr. Manoj Kumar and everywhere the days had emerged as ace of the leaders in the growing department of the electronics and home appliances market in India. before long it has a market share of 30% of the home appliances market. Its product strategy has been to entreat a wide range, right from infectious mononucleosis stereo, two in ones and sophisticated medical specialty systems to televisions, refrigerators, washing machines, ovens and microwave ovens.ABCs marketing strategy also included crack the above products so as to equal the needs and work out of the middle and top(prenominal) middle classes. In 1991, Prasad, son of Mr. Manoj Kumar, took over as the Managing Director of the union. Seeing the penetrative competition in the post liberalization scenario, Prasad was keen to follow the principle that formerly you have decided on you r tar cop customer, you follow him/her relentlessly with attractive offerings. In 1994, he developed a hygienic focused advancement and distribution strategy. The packaging strategy involved an advertising budget of Rs. 0 crores, a special bringing up program for the gross revenue force and offering freebies and various other gross sales promotion techniques. In terms of distribution, Prasad selected grievous bodily harm salesrooms and franchisees to presentment their wide range of products. The location of the exclusive retail outlets was also selected so as to match the perceptions of the consumers as an exclusive showroom for them. However, even after two years of implementing the in the altogether promotion and distribution strategy, the sales of ABC Electronics did not pick up to the extent that the company thought it would.Prasad accordingly directed the marketing manager to learn a study of other retail outlets to know the trend. The results revealed that there wa s a potpourri in consumers perceptions regarding purchasing consumer durables. There seemed to be a preference for purchasing goods from multi brand, sooner than from single brand outlets. Questions 1. Where do you designate Prasad went wrong in his analysis of consumer port? 2. Discuss the change in the power of the consumer today, as compared to the consumer five years ago.M/s. Tuf lash Ltd. Tufcom place For the last fifty years, M/s. Tufleather has been in the business of manufacturing and grassing leather to companies which give way leather horse enclothes and other related products. In the post liberalization period, i. e. , from 1991 onwards, the company was contemplating entering the habilitate manufacturing industry, primarily because the presidential term was giving substantial support to this industry, oddly to firms that were export oriented.With the intention of selling shoes, the company set up its own milling machinery with R & D facilities in Hosur, Tami l Nadu. In 1993, the companys R & D department developed a material Tufcom, which it claimed had properties of shoe material permeability, strength, tractableness and durability. The company also set up a sub unit to build shoes with this new material and conducted judge marketing to gauge the initial response. The take flight study indicated positive consumer response.Based on the turn up 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 cause attractive shoe models. They also mean to have an in-house trained squad of sales people who would visit the shoe retail outlets and train their sales persons on how to sell shoes. Tufleather also helped the shoe manufacturing companies by providing catch of purchase and advertising materials for a nationally advertising campaign.The company developed a premium set strategy for the Tufcom material, be on the consumer perc eptual process the opinion that uplifted price is an indicator of high quality. They felt that Tufcom offered quality that was superior to leather in terms of durability and chasteness of care. After adopting a skimming pricing strategy, the company would later consider crafty the lower priced shoe market segment. firearm the first year after the despatch of Tufcom shoes showed positive results, sales began to declension 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 mobilise the company went wrong in analyzing consumer shoe buying behavior? 2. Do you infer the company should identify a new buyer market, namely the lower priced shoe market segment?