MAR456- fp

MAR456 fp - Ashley Stephens MAR 456 Indraprastha Ice and Cold Storage Ltd Focal Problem Dear Sanjay Aggarwal Even though the revenue of IPCSL is

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Ashley Stephens MAR 456 Indraprastha Ice and Cold Storage Ltd. Focal Problem April 30, 2002 Dear Sanjay Aggarwal, Even though the revenue of IPCSL is increasing, it is still below the threshold necessary to cover financial and operational costs incurred by the company. While there is a steady storage space demand for imported fruit, the demand for the domestic fruits has declined. In addition to these two issues, price-cutting is in the market as well as from competitors. A fundamental change in the company strategy is essential to turn IPCSL around. In order be profitable and compete with the price-cutting, I recommend that IPCSL market their cold storage services to a specific target market. IPCSL must market their service toward the sub-wholesalers that get fruit from growers in Himacahal Pradesh and Kashmir who sell their fruit produce to customers in Delhi Azadpur, the main market for apples. By targeting the sub-wholesalers working with the fruit growers , who are responsible for 80% of the apples sold in Delhi Azadpur, IPCSL will see an increase in the demand for domestic fruit transportation, thereby increasing the overall demand for domestic Indian fruit. Targeting this group will allow for increasing profits being that fruits that are being transported from Himacahal Pradesh and Kashmir. India’s annual fruit production is around 97 billion pounds, commonly produced varieties are apple, mango, banana, pineapple, chikoo and grape. Fruits like mangoes, bananas and grapes perish faster - ten days from harvest in ordinary cold storage - while in a gas controlled storage, grapes could last for two months, and apples can be stored for much longer up to two months in ordinary storage, four months in gas controlled storage and even six months controlled atmosphere storage. Most of the apples harvested in India come from Himachal Pradesh (HP) and Jammu andKashmir (J&K) which annually produce 1.1 billion pounds and 1.9 billion pounds respectively. Local fruit consumption in both these states is estimated at less than 2% of its harvest. All excess production therefore, is transported to Delhi Azadpur Mandi whereIPCSL is located. Producers ship their produce in bulk and not all of it is sold the day it reaches the market. Usually only 50% of the fruits are sold the same day while 35-40% is sold within a month thereafter and a small percentage (10-15%) is kept
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This note was uploaded on 01/02/2012 for the course MAR 456 taught by Professor Tucker,f during the Spring '08 term at Syracuse.

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MAR456 fp - Ashley Stephens MAR 456 Indraprastha Ice and Cold Storage Ltd Focal Problem Dear Sanjay Aggarwal Even though the revenue of IPCSL is

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