Scribd
Upload
27 views

B2B CASE STUDY Thursday

1) SOLEX was recently acquired by a company seeking to enter the solar water heater market in India. 2) The new GM must develop a marketing plan to achieve $10 million in sales in the first year and return SOLEX to profitability. 3) Key information provided includes SOLEX's production capacity, product details and pricing, potential market segments in India totaling over $5 billion, and competition from 20 other solar firms.

Uploaded by

yash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
27 views

B2B CASE STUDY Thursday

1) SOLEX was recently acquired by a company seeking to enter the solar water heater market in India. 2) The new GM must develop a marketing plan to achieve $10 million in sales in the first year and return SOLEX to profitability. 3) Key information provided includes SOLEX's production capacity, product details and pricing, potential market segments in India totaling over $5 billion, and competition from 20 other solar firms.

Uploaded by

yash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

SOLEX: From a Clean Slate

On ApriI1,2003, YouReceived aLetterf rom You r MD.The letterstated:


We have decided to enter into the area of solar water heaters. The global energy crises and the environmental
concems have made the dependence on non-conventional and renewal sources of energy an unavoidable
imperative. With several sunny days, solar energy holds a special promise and potential in India. Solar
energy based water heaters appear to be a natural extension of our existing business lines in energy and
environment protection. Acquisition of M/s SOLEX, a small Nasik-based firm, marks our entry into this
business. SOLEX has capabilities to manufacture both large and small (domestic) solar water heater systems.
These can be sold to households as well as to big organizations. As of March 31, 2003, the paid-up capital of
SOLEX was n millions. The accumulated losses in the last five years were around TN) millions.

The letter further stated:


The management is pleased to appoint you as General Manager (Solar Energy Division). As GM, your first
task is to put back M/s SOLEX on smooth rails. You are required to develop a marketing plan for 2003-
2004. Your sales target in the first year should be ?10 million. You have complete liberty to develop your
own budget for the sales promotion. Management assures you of adequate manpower and funds. You are
requested to submit your plans within 30 days. I am enclosing some important information. You may find it
useful.

MISSOLEX:SOMEINFORMATION
1. The existing capacity of M/s SOLEX to manufacture the collectors is around 18.000 sq meter a year,
on a three-shift basis.
2. The factory cost of fabricating the collectors, varies from ntwo to n000 sq meter. The cost depends
upon design and material used for the collectors. Collectors using galvanised iron (GI) pipes or mild
steel (MS) pipes are cheaper and less efficient, than those using copper pipes.
3. The approximate cost of a collector in the total installation of a system may be around 60 per cent

6 0 0 BusinessMarketing

4. The existing domestic models of solar water heaters of M/s SOLEX are:
(a) 75litres(capacityofstoragetank,usefulforlivepeople).Thisrequires1.2sqmeterofcollector area
Depending upon the material of the pipes. the sales price may vary from t4000to 16000 pa wit.
(b) 125 litres, useful for 6.7 people. It requires 2 sq meter of collector area. The sales price may be
t8003 to t12,000 per unit.
(c) 250 litres, useful for 12.15 people. It requires 4 sq meter of collector area. The sales price may be
t9000 to 112,000 per unit.
5. M/S SOLEX has supplied, erected and commissioned a system capable of supplying 6500 litres an
hour of hot water at 65°C to a leading hotel in Delhi. This system was designed for a temperature rue of
35°C. The hotel has around 500 rooms and the total cost of the project was around t2 millions 120021.
The use was for pre-beating the utility water as well as a large swimming pool.
6. Approximate heat available for a temperature rise of 35°C, assuming collection of 6 hours a day of
solar energy, works out to be 524A kilo calories an hour per square meter of collector area. The normal
temperature of water could be considered as 30°C.
7. As per market study, the estimated potential for various user segments in India are:
User Segments Potential in rupees at 2002 Prices
(only for collector area,
(a)Hotels 200millions

(c)Bottlingplants 1600 milions


(d) canteens of manufacturing units 100 millions
(b)hostels in university and College s 40 millions
(e)Domestichotwatersolarheaters 3000 milions
8. By 2003, there were around 20 firms in India, who were claiming to be in the business of solar water
heaters. These were mainly located in the metro cities.

I. Suggest a winning strategy for SOLEX.

You might also like