SURVODAYA PRIVATE LIMITED

JUNE 1955 , the company was appointed by a foreign oil company as an exclusive distributor for bottled gas & stoves in udyannagar city (gujrat). Mr. Kailash Chandra director of Survodaya Private Limited (SPL) Mr. Ramachandran sales organizer for the promotion of the product of SPL

PRODUCT
BOTTLED GAS

Bottled gas was used through a specially design gas stove

Gas stove was supplied by oil company

A rubber tube connected the stove with the cylinder The burner in the stove had several small holes through which gas could be lighted with a match after the cylinder valve had been opened & a switch on the stove turned on The amount of gas released could be regulated through the switch To put off the stove , the burner had to be switched off & the valve of the cylinder closed

PRICE
Gujrati Family - 4 or 5 members sagadi / kerosene stove - 12 to 13 Rs./month Cylinder price - 19 Rs.

The user had to purchase a gas stove priced at

100 Rs. + 25 Rs. (deposit) = 125 Rs.

Kerosene stove & sagadi

15 to 20 Rs. Latter about 2 to 3 Rs.

PLACE
Because of the high initial investment & increased operating cost Limited market in Udyannager

families earning more than 500 Rs. / month Potential customers , having cars or telephone

12,000 families > 500 Rs./month ( local newspaper ) Ramchandran made a list of 5,000 cars / telephone ) families ( having

PROMOTION

In november 1955 Ramchandran sent a sales letter to each of them & advertised in local news papers Ramchandran also started calling on a few families to SPLs office everyday & explained Arranged demonstration in important areas of the city

societies having Cooperative housing activity Womens organizations 10 15 women came to each demonstration

In his advertisement , circular letters & demonstrations, he tried to make clear that the use of gas was as safe as any other fuel

Ramchandran spent 6 months promoting the product and booking orders for later deliveries After 6 months , he got his first supply of stoves & gas cylinders and started delivery and installation With in 9 months he had 1,100 users in the town Users who experienced any difficulties with the product could register their complaints with SPls office

MAJOR PROBLEMS

Stove supporters Stove burner Constant attention More matches

Apprehension about gas

No reserve capacity

CONSUMER BEHAVIOR

Cultural factors

culture , subculture , social class

Social factors

reference group, family, roles & status

Personal factors

age & life cycle, occupation, life style, economic situation, personality & self concept

Psychological factors

Motivation, perception, learning, beliefs & attitudes

 Stove

suited to flat surface , gujrati families didnt use flat surface to cook thin chapaties, fell in to the space between the supporter gujrati dishes i.e. kichari

Very

Certain

Constant

attention require
3 matchbox instead of 1

Purchased

 Fear

fire & explosion that gas was poisonous

Believed

Elderly

women opposed it targeting to young women who didnt want to use coal as a fuel for fear of spoiling their hands & clothes
culture i.e. Vaishnava community

Religion

ACTIONS TO SOLVE PROBLEMS

manufactured a ring to fit the supporters of the stove price of ring - 1.50 Rs/piece Manufactured New burner having central flame price of burner - 13.50 Rs/piece

Explained in sales letters

gas was non poisonous & non intoxicating Care should be taken in operating the stove

Appointed sub-agents to take on the work of quick delivery of cylinders to users located near them

Spl got commission of 3.37 Rs./cylinder from parent company & pay 1.75 Rs./cylinder to subagent

Subagents maintained a number of facilities

Showroom Telephone Satisfactory storage Godown facilities vehicles Staff - clerk & delivery boy

This was the first time that bottled gas stoves were to be put on the market in