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Industrial Marketing A case on NICCO CABLE CORPORATION LTD.

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SWOT ANALYSIS
STRENGHTS
Market leaders in 1950s Invested in new technology

WEAKNESS

Marketing myopia Satisfied with short-term targets Products were not well promoted

OPPORTUNITY

To improve internal communication Access to untapped market of PVC and rubber cables Already established cable suppliers Threat from marketing myopia

THREAT

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CASE SUMMARY :
Decentralized Structure
Well Established Organization Market Leader in 50s

Management Interest in investing high quality PVC Cable and rubber cables for critical applications.
Company plans to market the product to a targeted customers particularly AAA LTD, BBB LTD, CCC LTD. AND DDD LTD.

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Some useful facts: Manufacturing units of cables at NICCO: 1. Shyamnagar, Kolkata 2. Baripada, Orissa Both the units are accredited with ISO certification and the products conform to BS, IEC, VDE or any other customised specifications. The R&D cell centered at Shyamnagar is recognized by the Ministry of Science & Technology, Govt. of India. Some major clients include SAIL,BHEL,INDIAN RAILWAYS,LARSEN AND TOUBRO,TELCO,etc Majority of its clients are found in the South-West division of India.

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SUGGESTED STRATEGY ADOPTED

Cost-benefit Analysis

Customized delivery schedule

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The yearly requirements of the company maybe calculated to decide the usage rate and to achieve just in time to minimize the logistics and warehousing costs.
COMPANY AAA LTD. BBB LTD. CCC LTD. DDD LTD. DEMAND(IN METRES/YEAR) 10,70,000 10,50,000 15,60,000 4,00,000 BUSINESS 10,64,59,000 3,90,00,000 4,58,00,000 3,00,00,000 LOCATION MUMBAI MUMBAI DELHI HARYANA DEMAND/QUARTER

356666 350000 520000 133334

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The company must adopt its distribution strategy according to the clients requirements and associated costs such as logistics, transporatation, warehousing and aftersales services. As the clients are dispersed all over the company, an adequate warehousing facility should be provided for both the north and the south division. The Baripada plant in Orissa is in proximity with the southern parts of India . The Shyamnagar plant is in proximity with the clients in the northern side.
Warehouse : Haryana

Shyamnagar plant, West Bengal.

North Eastern logistics external North western logistiics

Badipara plant, Orissa.

Warehouse in Andhra Pradesh Coimbatore warehouse

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Distribution Strategy suggested for targeted customers

The Company should follow an optimal Distribution strategy to market its products:

It should be Zero Level channel for its niche category of customers. And 2 level or 3 level for its other customers. Technical Sales Specialists should handle New Accounts.

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Other suggested strategies

Requirement Specifications should be well understood and complied prior to any technical commercial offer, this could be done either through in-depth interviews of the members of the DMU or through the Requirement Specification document. The company should strictly comply to delivery schedules as per the commitment with the customers, in the process it should follow JIT approach to maintain its stocks in order to fulfill the pipelined orders. Quality Assurance audits should be made prior delivery in order to ensure that the packaging of the products is done properly in order to avoid to avoid any breakage during transportation.

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NCCLs Management decision about NPD responsibility.

Concept of DMU The marketing efforts must be delegated to the product development department such that there is a better understanding created between the production teams of both parties. As the company wants to enter into a high quality PVC cables segment it must identify its users and through a thorough research with them customize products according to their requirements. It must also work to generate a market for its generic high quality PVC cables by informing their existing clients and their new target audience via meetings, industry seminars, quotations and tenders. This would help direct the entire marketing effort in a cost effective way. The NPD Team should coordinate with the sales team about the entire marketing effort. After the launched pad for the product has been done ,there on it can taken over by the Regional Sales Team.

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Integrated Management Systems

The management efforts should be in a coordinated flow such that they are effectively and efficiently utilized by keeping the costs low for NCCL and providing adequate quality and timely delivery to its clients.

1. External evaluation of target customers.

2. Integrated customized solutions 3. Total problem solving approach

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Managerial DOC and Distribution Policies

MANAGERIAL DOC: NICCO Cable Corporation Ltd has a mixed centralized management structure. It is a traditional and mainly production oriented company with a myopic vision. Here, departmental directives quite often override corporate objectives.

Example: The management is keen to market high quality rubber cables to domestic white good sector but has not even approached them with conventional and established PVC. Now, To promote the product the management need to develop a totally new approach. Example: Systems Approach

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DISTRIBUTION POLICIES

In NCCL rubber cables are delivered in public sector undertaking such as defense and railways. Direct distribution by road is organized by large trucks by private transport firms. The procedure which is adopted is:

Before loading, the actual quantity of the rubber cables is measured and recorded in the delivery challan with the help of weigh bridges which is installed in each factory of NCCL. While loading, once again, the lot is weighed to quantify the actual weight. This record is printed on the challans, copies of which is given to the private transport drivers, who send a set of them to its own head office for recording and accounting purpose. After the product is delivered at the final destination, the same weigh bridge method is used to record the quantity delivered to NCCLs customers, who also stamp the final quantity delivered on the delivery challan.

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WHY DOC SHOULD BE INTEGRATED IN DISTRIBUTION STRATEGY

Hypothetical Case: Because of faulty recording at the time of loading, the physical delivery recorded was considerably less than the quantity filled up. There was an error of accounting and recording, because of which the transporters entire bill, in a particular period, was help up by NCCLS centralized finance department for a very long time. Now, The mixed decentralization picture come wherein, the matter was told to the head. The matter was resolved after many intervention from NCCLS head office-based top management personnel;, which took nearly 2 years. And hence, the transporters stopped deliveries completely.

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Solution:

If decentralized organizational structure would have prevailed then:

Several individuals would have been responsible for making business decisions and running the business. It would have rely on a team environment at different levels in the business. Individuals at each level in the business may have some autonomy to make business decisions. Hence, the matter could have been resolved within the time period.