Case Analysis - Prithvi Electricals

Submitted to: Tathagata Submitted by: Aman Poddar

Roll no: 108F107
Section:1

Situation analysis:

Prithvi Electricals was a partnership firm with two brothers as its partners - Jayantilal and
Gordhandas. The firm was setup in 1976 by Jayantilal of copper winding work for motors and
later joined by Gordhandas in 1979. In 1984, It start manufacturing the table top mixers with
250-watt AC motor. In the first year, it sold 300 mixies and by 1996 the company was selling
about 2000 units per month. The major sales came from south with 64% and least 3% from
North.

Problem statement:
Prithvi electrical facing issues with a distribution channels with dealers and retailers along with
upcoming competition in a market as the competitors are better in quality, price, aesthetics,
product range and warranty. How to address this issues and regain their position in a market.

Product Analysis:

Strength Weakness
Price leader Inadequate relationship with dealers
Small, compact table top units No product range
Consumed less power Fewer features with heavy models
Made more noise Single product line
1 year warranty No innovation

This case can be analyzed through the business to consumer perspective with the following
issues:

Collaborative: As the demands increased, they start appointed dealer who sold the product to
retailers which made their existing dealers unhappy and some of them pulled out of the Prithvi
dealership. With this there was no collaborative exchanges.

Mutually adaptive: The channel between dealers and company is getting shrink. As they were
not taking the problem seriously. Buyers were unhappy which lead to no trust and cooperation.

Buying and selling: They targeted the lower middle class people who can afford at a price of
Rs2000 easily compared to top brands. They promoted through the local newspaper,
magazines, movie house, price ads, finance schemes during the festive seasons with attractive
discount schemes

Bare Bones: With more Companies expected to enter in the Indian mixer market like Chinese &
Korean with innovative marketing strategies better in quality, price, aesthetics, product range
and warranty leading to less adaptation by the seller and cooperation for their product.

Customer supply: They were neglecting the relationship with the existing dealers by appointing
new dealers to gain high margin which leads to bad relationship with not meeting their need.
Making their sales drop down by 10%.
Recommendations in Business market perspective:
Close suppler- customer relationship- They should establish credibility and trustworthy
relationship among dealers and come up with varieties of product. They need to address the
problem of the dealers to make a position in a market for a long run as more companies are
getting entered with innovative. To resolve and making the healthy relationship.
Derived demand: As the demand for business goods ultimately derived from the consumer
goods. For this reason, they should closely monitor the buying patterns of the end users.
Multiple buying influence: Gopal appointment is a good step for a company. As his 6 years of
experience in sales area may lead a company to next level with increased revenue growth by
coming up with new promotional plan. As Market share of AC motor was 85% with a growth
rate of 10% per year. He has the liberty to design the distribution channels on his own and he
should establish a trustworthy relationship and keeping the margin of dealer and retailers in
mind and work with them on regular basis to get the feedback and work on them to address for
the company’s growth.