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INDRA PHARMACEUTICALS - Case Study

Indra Pharmaceuticals produced protein biscuits called "triple plus protein" biscuits targeted at middle class consumers. However, the biscuits failed to meet sales targets for several reasons: 1) The biscuits were priced too high for the target audience to afford regularly. 2) Promotion through doctors would not reach the mass consumer market. 3) Discounts of $5 were too small to impact perceived value compared to competitors. To increase sales, the company needs to establish distribution networks to get the biscuits on retailer shelves visible to customers, provide free introductory samples, and offer competitive pricing or larger packages through advertising.

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Praveen Karthigan
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896 views

INDRA PHARMACEUTICALS - Case Study

Indra Pharmaceuticals produced protein biscuits called "triple plus protein" biscuits targeted at middle class consumers. However, the biscuits failed to meet sales targets for several reasons: 1) The biscuits were priced too high for the target audience to afford regularly. 2) Promotion through doctors would not reach the mass consumer market. 3) Discounts of $5 were too small to impact perceived value compared to competitors. To increase sales, the company needs to establish distribution networks to get the biscuits on retailer shelves visible to customers, provide free introductory samples, and offer competitive pricing or larger packages through advertising.

Uploaded by

Praveen Karthigan
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INDRA PHARMACEUTICALS

Account for the failure of the company to achieve the sales target:

There are different reasons for the failure for the company to reach its sales target on the sales
of the protein biscuits. The triple plus protein biscuits were priced at a higher price for the
middle class people to buy. The “Threptin” biscuits were priced for the upper class people to
procure. Moreover the “triple plus protein” biscuits were competitively priced with respect to
the ordinary biscuits. Though the target audience were middle class who suffer the most
protein deficiency they will not be affordable to buy 400gm of biscuits worth Rs.75. Another
reason would be promotion methods used to market the biscuits. The medical representatives,
though they have very good rapport with the doctors and the medical practitioners, promoting
to them will not reach the mass consumers.

Advertising and sales promotion strategy evaluation:

The advertising of the product in the newspapers, health magazines, radio and television is a
good strategy to meet to the mass consumers across different locations. But it is always
necessary to advertise more towards the target audience. As the “triple plus protein” biscuits
are targeted towards the people in the middle class, more advertising bill boards in the
residential areas of the middle class people can be planned. The sales promotion by giving
discounts of Rs.5 will not be effective for the targeted middle class people. The perceived
value for the biscuits is much lower than the cost of the biscuits. Hence it is better to increase
the discount value to increase the content of the biscuits. As the biscuits are competitively
positioned with the ordinary biscuits, the buyer will look out for the competitor’s products for
the comparison. The discount coupons given to the doctors to pass over the biscuit to their
patients is also a good sales promotion strategy but it will not increase the sales of the biscuits
substantially.

Suitable promotion plan to increase the Sales:

The sales promotion for the “triple plus protein” biscuits should include both the Push and the
pull strategy to attract and distribute the same to the customers. The push strategy method
includes promoting it with the distribution channels. A distribution network should be
established with the distributors and the dealers who promote biscuits. It is only through the
distributor the biscuits can be placed in the retailer shops where it is more accessible and
visible to the middle class people. Only of the product is placed in the shelves of the retailer
shops the product will gain awareness across the customers in the targeted segment. The
distributor and the dealer should be given attractive discounts or boosters to promote the
product with the distribution channels.

In the pull strategy, the best way to promote the biscuits is to provide free samples of
the biscuits in small packets to the local people distributed to the retailers. When free samples
are provided, people have tendency to grab the packets and taste the product. The offer of the
free samples can be carried for a period of week or two in different locations. The offer can
also be advertised in the newspaper and in the local papers. After in the introductory offer the
biscuits can still be promoted with the additional offer in the price or increase in the quantity
of the product to position it competitively with the competitors because the consumers will
look into the competitor’s products for the comparison.

Change in the channels of distribution:

There should be a change in the channels of the distribution for the sale of the biscuits to
increase. A standard distribution channels should be established with the distributors and the
dealers as the intermediaries. A vertical distribution and marketing system should be
established where all the three parties the manufacturer, the distributor and the retailer act as
one team to provide service to the end user or the consumer. The sale of the biscuits will
increase with the distributor purchasing and placing them on the shelves of the retail stores.
The marketing can be done by all the intermediaries to gain the market share of the biscuits
consumed by the end users. The medical representatives canvassing the doctors and the
clinicians will not increase the sale of the biscuits as a whole as the target segment is middle
class consumers. Moreover advertising through mass communication techniques like
television and radio will initiate awareness to people and there should be a systematic for the
products or the biscuits to reach the people.

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