Q1. Why Natvarlal is worried? Choose option and justified (Max 100 words) a) Product is not selling b) He is facing production issue c) Customer is not able to understand the product d) He is facing competition from major cigarettes player

A1. b)

According to the case, Mr Natvarlal is looking for options to procure machinery to avoid

manual manufacturing process. He had failed in his previous attempt to develop a special

machine in an experiment. Purchase of machinery required a capital investment of around

70-80 lacs which wasnt available with him. Other option of second hand machinery was not

fruitful too. He has given this task to an engineer but the matter isnt resolved yet. Due to

lack of machinery, the sales expansion would not be possible which would be required given

that he is expecting large orders in the near future. Therefore, he is facing production issue

in my opinion.

Q2: How should Bhavasar promote his product ? choose option and justified ( Max 100 words)

a) Tv Ads b) Radio Ads c) Door to door promotion d) Social Media e) Any other

A2. c)

Door to door sales delegated to Mr. Bhavsars son was of enormous benefit to the business,

selling around 50 packets a day. But the effort was only contained to Ahmedabad locality by

a single salesman. This can be stepped up to cater to different regions of Ahmedabad and

nearby towns. Opening people up to a new product requires human interplay. Generating an

average revenue of Rs.250 a day, increasing the number of salesmen and paying them per

sale would be cost effective and efficient in marketing the product initially before moving on

to TV or Radio advertisements.

Q3. What do you think is best segment for Nirdosh? Choose option and justified (Max 100 words) a) Herbal Smokers b) People who want to quit cigarette c) People who want to quit bidi d) Ayurvedic remedy for cough e) Any other

A3. c)

Analysing the data given in Exhibit 3 table 1, we see that the number of bidi consumers in

125mn which is 5 times the number of cigarette consumers. we dont have the data for the

number of people who want to quit smoking, but assuming a huge percentage of the

smokers have concerns with smoking tobacco, and the market opportunities in this area is

very very large as given in the case, therefore combining the above stated facts, we think

that the best target segment for Nirdosh would be people who want to quit bidi.

Q4. Hypothetically if you are venture capitalist who want to fund Nirdosh, where you would like company to spend money ?(Max 100 words) a) Help in machinery b) Trade promotion c) Advertisement d) International expansion e) Other ( please specify )

A4. a)

From the write up, we can see that, Mr. Natvarlal made an effort in 1982-83 to make a

machine precisely for Nirdosh production but did not succeed at it. Again in 1990, he has

given this task to an engineer in Bombay. It is fairly evident that he thinks that machinery is

very vital for scaling up the production. He is getting positive feedback from the users of

Nirdosh and has fairly decent amount of publicity as well. As an investor, I feel quite

convinced that his product is sellable but to reap suitable benefits from advertising in the

future, he must have the machinery to match the demand.

Q5. See Exibit III Table 9. Select 1 image dimension and 1 attribute you would like Nirdosh should focus on. ( Justify your answer in no more than 50 words)

A5. a)

He should select the image dimension Likely to be more popular as he is introducing a

disruptive product in the tobacco industry. Also, he has named the product category as

Bicets and not cigarettes or biris. The attribute associated with Nirdosh should be

Satisfaction as it is intended to satisfy people having different kinds of taste, temperament,

smoking urges and health problems.