Final Round

Phew! That was close!

Congratulations for surviving the tide of second round!! We hope that you are enjoying the ride. Now it is time to reach the shore.

Welcome to the last round!!

Information from marketing and sales team suggested that revenue from sarees segment has been stagnant from past 4 years despite market for sarees growing to 40% in 2023 from 33% in 2017. All the sales increment received by your company till now were from Suits.

To gain more insights on the problem and take further decisions, it is essential to do a deep market study in order to understand where your product sales are lacking. If you had invested in 1^st round to establish market research department, you can approach them for the same. In case, you didn’t opt for the same, you need to approach a private consultancy service for the same insights, which will cost you one and half times the price of establishing the same department in your organization.

Report from the consultancy provides you with the following insights:

(i)    Marketing – 60% of sarees sales is generated from rural market. Demand in rural market corresponds to trendy look and are very sensitive towards price. Rural market is growing at a CAGR of 15%. Miniscule percentage of sales of company are generated from rural market.  For last 4 years, your distribution of rural and urban marketing spend was 0.2:0.8

(ii)   Customer Feedback: for sarees, customer did not receive satisfactory services for issues like returns, damaged product exchange, etc.

(iii)  Quality of material: 60% of urban and 30% of rural customers were not happy with the quality and reported cases of fading colors, easy product damage, etc.

(iv)  Overprice: Most of the rural customers believed the price to be too high in budget segment.

Keeping these factors in mind, brainstorm to divide your investment in following categories to generate maximum profits:

(i)         How do you want to split the investment among Offline : Online?

(ii)       Distribute your spend of marketing budget among following promotional activities

-       Loyalty Discount : What would you like to keep discount percent?

-       VIP Club: How much would you want to invest in VIP Club promotion offer?

-        Advertisement: How much would you want to invest in promotion through advertisement?

(iii)      How much should you spend for Staff training & development?

(iv)      How do you want to divide your marketing spend between rural and urban areas?

(v)       Would you want to enter into the premium footwear business or not?

(vi)      How would you handle Logistics: (a) Using a 3rd party Service (b) Set up in-house logistics for your organization?

(vii)    How much you want to invest in designers? Generally, organizations spend around 5% of total sales in designers?

(viii)    How much would you invest in customer relation management activities

Submit your responses on https://forms.gle/V42KSgSarT9EG2pT9

Deadline for final round submissions: 06:00:00 PM, 25^th November 2019