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A One Starch (HBS Case)

A-One Starch produces liquid glucose and other starches, but is struggling with inefficiencies and a flawed pricing strategy. It needs a marketing plan to address leaking packages, untimely deliveries, lack of direct customer relationships, quality issues, and higher production costs compared to competitors. The plan should involve price customization for organized and unorganized sectors, quality control reforms, a dedicated product manager, direct communication with unorganized sector firms, and customized packaging. Growth opportunities exist in steadily growing sectors like pharma and confectionery, as well as potentially in beer.

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237 views1 page

A One Starch (HBS Case)

A-One Starch produces liquid glucose and other starches, but is struggling with inefficiencies and a flawed pricing strategy. It needs a marketing plan to address leaking packages, untimely deliveries, lack of direct customer relationships, quality issues, and higher production costs compared to competitors. The plan should involve price customization for organized and unorganized sectors, quality control reforms, a dedicated product manager, direct communication with unorganized sector firms, and customized packaging. Growth opportunities exist in steadily growing sectors like pharma and confectionery, as well as potentially in beer.

Uploaded by

smeily
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MKT-1: A-One Starch (Group E7)

Situation Analysis
A-One Starch produces liquid glucose and other types of starch, selling to both the organised
and unorganised sectors. It is struggling to maintain its market share in the highly competitive
industry owing to inefficiency in its management functions. Moreover, the transport-sensitive
nature of its product acts as a barrier to market penetration. The pricing strategy adopted by the
firm is also flawed as it sells its glucose at a price higher than the industry standards. The
quality standard are also not upto the mark. In order to boost the topline without increasing the
prices, it needs to devise a suitable marketing plan which addresses all the above stated issues.

Problems
1. Leaking packages
2. Untimely delivery
3. Lack of direct relationship with customers
4. Quality issues - mismatch of batch numbers
5. Production Cost is higher compared to all other competitors of liquid glucose
6. Higher Competition because of very high product capacity in nation

Customer segmentation:
1. Organised sector:
-Need regular supply, high quality and relatively price insensitive
-Pharma firms were more quality and price conscious
2. Unorganised sector:
-For unbranded items, highly price sensitive. For branded items, less price-conscious

Proposed changes:
1. Price customisation for organised (high) and unorganised sector (low)
2. Administrative reforms for timely delivery and quality control
3. Allocating a dedicated product manager to handle issues related to liquid glucose
4. Direct communication with the unorganised sector firms
5. Customised packaging process for organised and unorganised sectors
6. Increase both price and quality for picky and price-insensitive customers
7. Reduce the smaller customers (in the bill amount category Rs. 0- 25000) - these
customers account for 48% of all orders but only 12% in billings

Opportunities for growth


1. Steady growth (10%) in pharma sector and confectionery sector
2. Potential market in beer industry.

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