NACCO
CASE RECOMMENDATION
Group 3
14F150
14F152
14F317
14F319
14F328
Is NACCO doing well? Market share in jam market
HUL Marico's Sil Druk Mala
Mapro NACCO Others
Year 201 2011 2012 11%
0 2%
Revenue for 605 590.8 572.25 4%
5%
jam
5%
Percentage - 2.48% 3%
change decrease decrease 60%
14%
Total revenue 172 1698 1738.75
1
Consumer Perception- Below Average for major
Percentage - 1.33% 2.39%
contributor- JAM
change decrease increase
Package Design, Sweetness & Flavour
Recently competition is going to increase as a Denmark-based Food Group is
planning to enter India by bringing in 100 percent sugar-free product
Break-even analysis- JAM
Cost Heads Value: 2012
Fixed Cost 16.17
Material 19.94
Bottle 6.47
Label 1.08
Excise and VAT 4.31
Profit Margin 5.93
Ex-factory price 53.9
Break-even point 61227
Sales = 54500
The company has not met its breakeven as of now but numerator will
reduce if all pack sizes are considered
Product
Observations Decisions
Features Benefits
1. SWEETNESS:
• Richness of • Ease of 1. find optimum sweetness level preferred
fruit spreading 2. research if sugar free content is needed
• Package • Value for if yes, find substitute for sugar as sweetne
design money 2. COLOR:
• Color • Sweetness 3. THICKNESS:
• Thickness of • Flavor 1. Check for consistency in texture
jam • Sweetening 2. Ensure no free liquid, pieces of fruit
chapatis,
4. FLAVOR:
dosas
• Saves time 1. Best seller flavours need to be introduced
2. Low sellers need to be removed
PROBLE
Ex. Papaya can be removed
MS
Sweetness
POP: Richness of
Color
fruit
Thickness
POD: Value for
Flavor
money
Packaging
Observations Decisions
• Content is too elaborate 1. Bright/attractive colors
• Brand name is not prominently 2. Images appealing to kids
visible 3. Make brand name visible
• Letter font style is very amateur 4. Change font style
• Color combination is not
appropriate
• Image of fruits too cluttered
SKU
Nissan Sil NACC0
500 500 500 1. 1kg
2. 500gm
200 200 1kg
3. 200gm
100 100 4kg 4. 100gm
50 - - 5. 15gm
Sachets - -
(15gm)
• Consumers might not prefer the large
packs and might demand for smaller
packs-on the move
Distribution
Manufactur
FADD Stockists Retailer Consumer
er
Current
System
1. Distribution Structure-
1. More level of intermediaries between Manufacturer and Consumer
2. Marketing & Distribution handled by same entity
Manufactur
FADD Stockists Retailer Consumer
er
Suggestion-1- Separate marketing
agency
Manufacturer Stockists Retailer Consumer
Suggestion-2
Commissions
NACCO Kissan Sil
Commissio Amou Commissio Amou Commissio Amou
n% nt n% nt n% nt
Ex-factory 53.9 91.48 87.21
FADD 6 4.2 - - - -
Stockist/Whole 9 6.3 5.5 5.89 5.5 5.61
seller
Retailer 8 5.6 9 9.63 9 9.18
MRP 70 107 102
Observations
• Low retailer commission given by NACCO might be a primary influencer
in affecting sales
• A major part of the commission is given to FADD which, if avoided,
might influence sales
Price • Per unit realization of channel members will increase if the price is increased
• Since consumption is high in South India, price can be kept high there i.e. a
differential pricing method can be adopted
New Price- Across India- Min. Rs. 70 For 500gms glass bottles
Cost Heads Value:2013 Value:2013
Single pricing Single pricing
with FADD without FADD
Fixed Cost (2%) 16.4934 17.7786
Material (6%) 21.13958 22.78682
Bottle (5%) 6.7914 7.3206
Label (5%) 1.1319 1.2201
Excise and VAT 4.5 4.9
Profit Margin 6.2 6.7
Ex-factory price
56.25628 60.70612
Break-even
point 60652
Gradual 60515
change
Present Ad
Not
Visible
The Image
is not
appealing
Copy Written is
Image is not amateurish
appropriate
according to
target segment
