What is the significance of environmental monitoring process in the perspective of Aqua Guard? Do you think more promotional efforts would be worth given to Aqua Guard? What do you think the recommendations of HR Manager would have to coup with situation? Being an expert, what solution you think are affective in the current situation and why? Do you favor the strengths of promotional manager?
Case study.
Aqua Guard
Introduction
Aqua Guard is a pioneer company in domestic, commercial and industrial water treatment products. It mainly deals in domestic and commercial water purification systems but other product lines include; mineral water plants, water softener, ultra violet sterilizer systems, deionizers, swimming pool equipments, water dispensers and purified boatel water. Since afterinception of business in 1987 from Lahore, it expanded operations to nearly all major cities of Pakistan such as Karachi, Rawalpinid, Multan, Quetta, Faisalabad, Hyderabad, Mir Pur (AJK) etc. The company has long record of success by targeting the renowned organizations of Pakistan. Presently, serving Pakistan Army, Pakistan Atomic Energy, Pakistan Air Force, Pakistan State Oil, Pakistan Telecommunication Authority etc. Furthermore schools, hospitals, foreign missions and embassies are also customers of the company.
Status Report
The period of high financial turnover came to an end in the last quarter of 2004, when the sale of the domestic purifier started fluctuating. This fluctuation remained for six months and later sale went on declining. Initially, the management thought of it as a seasonal drift but sale target were not being achieved despite several efforts made to boost sale again.
When the problem got worse, the MD called a meeting again to discuss the issues. During the meeting following comments were made by different professionals; 1. Marketing Manager recommended to offer rebate on the price of the products.
Sales Manager suggested to launch new low priced model (line extension) to cater the need of lower middle class.
- Manager HR stressed the formulation of a new sales team by replacing low performers with new hiring.
- Manager customer services emphasized to enhance promotion by more advertisement on TV, newspapers and cable TV.
- Manager advisory cell was in favor of old techniques that worked well last time during the depression faced in 1998, such as promotion through giveaways & novelties and dependence on exhibition & tradeshows. He also wanted the increase of commission; however sales persons were already given 25% of the price of unit sold.
- A newly hired promotion manager viewed the problem differently. He explained, “As the \ macro environmental conditions have changed significantly, therefore we should go further to general measures as normally companies take and we took previously. Our company should refresh all existing products by changing color, logo, design and style of the products. So that it could bring fresh image in the customer’s mind. Secondly, more emphasis should be given to telemarketing personnel. In present scenario, nearly all progressive organizations have separate telemarketing department which provides a ackup to sales people. We should organize full fledge telemarketing department. Lastly, Aqua Guard largely depends on the efforts of sales force but their training and development never been taken seriously. Neither the company nor the sale force was willing to acquire new skills. We are now in a dynamic world where training is imperative for the success of every marketing oriented organization. A complete training program is mandatory keeping in view the training need with respect to changed environment.
The long recommendations of promotional manager was not taken very seriously by fellow members, however MD and Marketing Manager took deep contemplation over the opinion.
Case Problem
The Managing Director is highly concerned with the current decline in sale. All the six options are available to him. He is uncertain whether to consider old course of action taken in 1998 that worked well previously or go for the new options that newly hired promotional manager suggested in view of current environmental trend or to look for any other alternative. The situation is getting worse therefore right decision has to be taken in a short period of time. He calls you as an expert to assess the situation and recommend a realistic and effective course of action. You are required to prepare a two page comprehensive report comprising brief summary of the issues, available alternatives and recommendations based on logical justification. Think over the situation and prepare an annotated plan of how you would approach advising the Managing Director. You are required to understand the key factors impeding sale. Outline the main problems and reasons behind. Recommend the course of action in detail that
you think is most feasible.
Questions
- What is the significance of environmental monitoring process in the perspective of Aqua Guard?
- Do you think more promotional efforts would be worth given to Aqua Guard?
- What do you think the recommendations of HR Manager would have to coup with situation?
- Being an expert, what solution you think are affective in the current situation and why?
- Do you favor the strengths of promotional manager?
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