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Compact case
Case
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Reference no. 519-0168-1
Subject category: Marketing
Authors: Chand Saini (Shree Guru Gobind Singh Tricentenary University)
Originally published in: 2019
Revision date: 09-Jan-2020
Length: 4 pages
Data source: Generalised experience

Abstract

Shweta, Manmohan, Shivam, and Piyush started a new venture Herbico Beauty Care Pvt Ltd with a registered office cum manufacturing unit in SolanBundi near Bhopal. The initial investment came as INR4 lakh, a lakh of INR from each Partner. With this initial investment, they brought a few pieces of machinery, a computer for office work and some other necessary things for the business operations. Shweta, as per her expertise, looked after the accounts, Manmohan with his limited experience in the field started looking after the Production while Shivam and Piyush distributed the work related to Purchase, Marketing, Logistics and Dealer network amongst themselves. The initial coverage area was the local market of Gwalior. They hired 3 salesmen to market and deliver their products into local markets. Their target segment was directly supplied to the Beauty Parlors and small and mid Size retail shops feeding to these parlors. The initial few days were dull and the first decent and biggest order came after 3 weeks of launch. The order, worth INR 5,000/-, was placed by Amrit Enterprises located at MahrajBada, Gwalior. The first financial year, 2014-15, did not give much response to Herbico. The annual turnover of 3 lakhs left them with a loss of INR40, 000/-. What went wrong at Herbico at the branding front?

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Geographical setting

Region:
Asia
Country:
India
Locations:
Gwalior; Bhopal; Indore

Featured company

Herbico Beauty Care Pvt Ltd
Employees:
2-10

Featured protagonist

  • Mrs Shweta Singh (female), Accounts

About

Abstract

Shweta, Manmohan, Shivam, and Piyush started a new venture Herbico Beauty Care Pvt Ltd with a registered office cum manufacturing unit in SolanBundi near Bhopal. The initial investment came as INR4 lakh, a lakh of INR from each Partner. With this initial investment, they brought a few pieces of machinery, a computer for office work and some other necessary things for the business operations. Shweta, as per her expertise, looked after the accounts, Manmohan with his limited experience in the field started looking after the Production while Shivam and Piyush distributed the work related to Purchase, Marketing, Logistics and Dealer network amongst themselves. The initial coverage area was the local market of Gwalior. They hired 3 salesmen to market and deliver their products into local markets. Their target segment was directly supplied to the Beauty Parlors and small and mid Size retail shops feeding to these parlors. The initial few days were dull and the first decent and biggest order came after 3 weeks of launch. The order, worth INR 5,000/-, was placed by Amrit Enterprises located at MahrajBada, Gwalior. The first financial year, 2014-15, did not give much response to Herbico. The annual turnover of 3 lakhs left them with a loss of INR40, 000/-. What went wrong at Herbico at the branding front?

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Settings

Geographical setting

Region:
Asia
Country:
India
Locations:
Gwalior; Bhopal; Indore

Featured company

Herbico Beauty Care Pvt Ltd
Employees:
2-10

Featured protagonist

  • Mrs Shweta Singh (female), Accounts

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