2 jha sm and singh lp marketing management in indian

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2. Jha, S.M. and Singh L.P. Marketing Management in Indian Perspective, Himalaya, New Delhi, 1988. 3. Nayak, A.P. & Sahoo S.C. Salesmanship, Sales Management and Advertising. Books and Books, Cuttack. 1994. 4. Still R.R. et. al. Sales Management; Decisions, Policies and Cases, PHI. New Delhi. 1976. Annamalai University
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160 CASE STUDY - 1 HOLLX LAFEX INDUSTRIES Helix Latex industries, a partnership concern which was in the business of Surgical and Medical equipments, manufacturing between 25 and 30 items like feeding nipples, B.L.B. mask equipment, saline and blood transfusion tubing, soil testing sheets etc., entered into the business of manufacturing surgical and post mortem hand gloves in December 1968. It invested Rs.5 lakhs in plant and equipment to manufacture this tem and started manufacturing 2,000 pairs per day. There were about 30 other manufacturers in this field nearly all of them coming under the classification of small scale industries. Helix Latex faced competition mainly from Dial Rubber Works of Bombay, Phoenix of Bhavnagar, and Swastik Rubber of Poona. The first two companies were selling about 60,000 pairs of hand gloves everyday. Swastik Rubber which was the biggest company of the lot was marketing about 30,000 pairs per day. These concerns were selling gloves on an approximate rate of Rs.1 per pair. When Helix first started manufacturing gloves is tried to sell its products at the rate of Rs.1.25 per pair. In terms of quality its products was superior to two of its competitors but occupied a second place when compared to Dial Rubber Works of Bombay. Being a surgical item the product however had to satisfy the minimum specifications in respect of T.S. (Tensile Strength) and E.B. (Elongation at Break) laid down by the Government which required testing of the product in the Government laboratories before permission to market them was granted. The market for gloves consisted of hospitals, surgical trade, D.G.S. & D and State tenders, individual doctors and packets of medicines. Helix sold their brand of gloves. Which they called supertax, through wholesalers and dealers and were able to keep to delivery schedules. They had an open channel policy. Helix appointed one dealer each in Madras, Calcutta and three in Delhi. No dealer was appointed in Bombay where the competition was very tough. In promoting the sale of gloves Helix put up sign boards in important surgical and medical equipments markets. To push the sale of its gloves it also advertised its products in medical journals and put up stalls in medical and surgical conference. The above marketing mix did not, however, help Helix in selling its daily production of 2,000 gloves in the market. One of its partners, who had his training in the area of marketing in one of the best business schools of U.S.A. finding that its product was not moving notwithstanding the fact that Helix’s marketing mix compared favourably with its competitors, decided to experiment and identify the effect of price reduction on the sale of this product. As a result of this decision the price of its brand of product supertax was reduced from Rs.1.25 initially fixed price,
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