BUSINESS MARKETING

Presented by: Isha Chitlangia(15) Rhythm Malhotra (28) Jayant Desai(17) Dushyant Kadam(13)

CASE STUDY
*50,000 laptops X Rs. 0.50 lakh Less (wholesaler and retailer margins @ 30%) Companys own stock 250 cr (-) 75 cr 175 cr

Less (company margins @ 20%) Own cost (capital blocked)

Borrowed @ 10% interest Interest burden paid per month Interest burden per day

50 cr 125 cr
12.5 cr per annum 1.04 cr per annum 3.46 lakh

Interest loss per day = annual salary

1. Offer your salespeople a monetary incentive to sell the product

Salesman salary + incentive; own sales force Salary Rs. 10,000 Incentives 5% on company block Per order 15 laptops 22 days available days 3 meets per week fewer buyers, geographically separated markets 12 companies targeted per month Success ratio of 20% Per Salesman per month 2 (2.4)companies will buy Per order 15 laptops Hence we need a workforce to sell the product in:
1 to 6 months

To sell of entire stock in

Per salesman orders per month

Per salesman Per salesman number of number of laptops sold laptops sold per order per month

No. of salesman needed to sell 50,000 laptops

Total interest burden

1 month 2 months 3 months 4 months 5 months 6 months

2 2 2 2 2 2

15 15 15 15 15 15

30 30 30 30 30 30

1,667 834 556 417 334 278

1,04,00,000 2,08,00,000 3,12,00,000 4,16,00,000 5,20,00,000

6,24,00,000

6 MONTHS
OVERHEAD
50,000 laptops X Rs. 0.50 lakh Less salaries (278 x Rs.10,000*6) Less (salesman margin @ 5%) Companys own stock Less (company margins @ 20%) Own cost (capital blocked) Borrowed @ 10% interest Interest burden paid per month

TOTAL COST PER UNIT

2,50,00,00,000 1,66,80,000 12,50,00,000 1,75,00,00,000 50,00,00,000 1,25,00,00,000 12.5 cr per annum 1.04 cr per annum 37,834 334 2,500 35,000 10,000 25,000

Interest burden per day

Interest burden for 6 months

3.46 lakh
6,24,00,000

5 MONTHS
OVERHEAD
50,000 laptops X Rs. 0.50 lakh Less salaries (334 x Rs.10,000) Less (salesman margin @ 5%) Companys own stock Less (company margins @ 20%) Own cost (capital blocked) Borrowed @ 10% interest Interest burden paid per month Interest burden per day Interest burden for 5 months

TOTAL COST PER UNIT

2,50,00,00,000 1,67,00,000 12,50,00,000 1,75,00,00,000 50,00,00,000 125,00,00,000 12.5 cr per annum 1.04 cr per annum 3.46 lakh 5,20,00,000 37,834 334.00 2,500 35,000 10,000 25,000

2.Inventory Balancing-Transfer the excess stock to another company location where the inventory is needed. 3.Advertise the availability of this material to other suppliers. E.g. industrymart 4. A Charitable Donation : Congress provides tax incentives under the tax laws to encourage donation of inventory to non-profit organizations. 5. Liquidation auctions: Retailers, wholesalers, manufacturers, distributors and others can sell goods via centralized liquidation auctions. For e.g..Liquidation.com

6.Use an online marketplace: Online marketplaces offer access to a broad network of customers, but have much heavier competition than selling locally. It has one disadvantage. It can take some time to market your products online. Determine the Liquidation Value: amount you can expect to recover in a sell-off type situation. Listing Success Rate and Average Sale Price are to be found out. Determine Your Costs of Liquidation Choose the Best Listing Type: Individual item sale, Small lot sale: Combining products into groups of 3, 5, 10, 20, Large wholesale lot sale: Selling off an entire inventory in one or more very large lots

Rule of thumb: Turn and Earn All inventories are not created equal. Basically, using the Turn and Earn principle, inventory items with relatively lower gross margin rates must turn much faster than items with relatively higher margins to make the same amount of money.

7.B 2C

Product placement

Marketing team

Geographic Demographic Psychographic Behavior & Attitudes

Laptops/PCs

Marketing team

Private sector Government Global Cooperatives / NGOs