[14/08, 3:18 PM] .: Premier Biscuits
Private Limited
Can they Make a Turnaround?
Prolegomena
Premier Biscuits Limited, Bangalore is in the
field for little over ten years. They started in
2011 as a partnership. The company was
promoted by three young graduates who had
been school friends. Ms. Usha Parekh studied
hotel management, whereas Mr. Gour Bardhan
and Ms. Sephali Dey studied Accounting. They
started as a small player in manufacturing
cookies. They tasted success from the very
beginning and expanded the business.
They leased a bakery and started to sell the
biscuits in different metro cities with the help of
marketing agents. They drew a good plan and
got funded by a Jewellery house. The
partnership turned into a Private Limited
company and in 2017, they came up with an IPO
to raise funds from the market and expanded
their biscuit manufacturing.
Since inception, the three entrepreneurs were
always successful to find good and unique
recipes, analysed the sale potential and always
tasted success since the beginning.
They were successful in sourcing best quality
ingredients from respectable vendors. They
were good paymasters, therefore, sourcing
quality flour, baking powder, salt, sugar, butter
and milk was not difficult for them. Apart from
these, they used to import flavouring
ingredients like vanilla essence, chocolate
chips, and coconut dust and others from Italy,
Switzerland and Indonesia.
During their journey, they have consistently
increased their sales. This was possible mainly
due to good quality of biscuits, a good
distribution network and promotion policy. The
company has shown innovative ability by
bringing out variety of biscuits to cater to
various tastes in the market.
A study made on the biscuit industry by the
Indian Biscuit manufacturers Association
highlighted that out of the total consumption of
biscuits, almost 21% are consumed by children
below the age of 11.The management of Premier
[14/08, 3:18 PM] .: Biscuits Limited decided to develop special
biscuits to cater to this market segment. After
working out different possibilities, it was finally
decided that biscuits made in different animal
shapes would be introduced which would
certainly appeal to children.
As such, samples were prepared. The company
carried out a small exercise in test marketing
the biscuits in their hometown. A sample size of
200 children from different schools was
selected for this purpose.
Majority of the sample showed their interest
and the guardians informed the company that
the children have liked the products. With a lot
of publicity, the company introduced this new
range of biscuits in four metropolitan towns of
Mumbai, Chennai, Kolkata and Delhi besides
Bangalore. The results for first six months were
encouraging. However, from the seventh
month, the sales started declining.
In the twelfth month, the total sales of this type
of biscuits were reported only at 25 percent of
the peak reached. The quality was maintained.
The price right from the beginning was 10
percent higher than the other types for same
weight.
The spread of the pandemic in the new financial
year made their sale of other biscuits to fall.
The think tank of the company started to find a
grand strategy to revive their business now.
Questions:
a. What may be the reasons which caused
the downward trend of sales for animal
shaped biscuits?
b. What remedial action would you
suggest to the thinktank of the Premier
Biscuits to enhance their businessbusiness now??
Answers
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Explanation:
not defined this question
sorry dear
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