Jai Paper Company is located in an agricultural belt about 300 Kilometres away from a metro city. How can you help Jai Paper Company become less dependent on the selling agents and plan its sales and profitability better? How can they plan their customer services and customer loyalty efforts?
ai Paper Company is located in an agricultural belt about 300 Kilometres away from a metro city. Company manufactures writing and printing paper. Last year the turnover of the company was 300 crores. Printing paper Industry is dominated by selling agents, which bring companies and buyers together and the selling agents get 3 % commission on all transactions. Jai Paper Company depends on selling agents to canvass business.
Company sells 23 % of paper directly to Govt. Institutions/organizations and 77 % of the paper is sold through these selling agents. Agent arranges for buyer to pay the company for its product and also provide credit support to buyers. These agents are not exclusive and work for many other paper mills and normally play mills against each other. They have a grip on business, and are reluctant to put the mill directly in touch with buyers.
For Jai Paper Company, there is always uncertainty on orders and price which would be obtained on the orders. The company cannot plan its sales properly nor can offer best services to the end users. JPC Top management is preparing a business plan and it is concerned about business issue which they want you to resolve.
A company needs to know its customer base and their yearly requirements in order to decide price, plan quantities and profitability. If Jai Paper Company does not know who is buying their product, which variety and in what quantity, how can they plan their sales and profitability?
How can you help Jai Paper Company become less dependent on the selling agents and plan its sales and profitability better? How can they plan their customer services and customer loyalty efforts?