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BENACULT Corp. Case Analysis

The document discusses a case analysis of BENACULT Corporation and their stand fan product. [1] It was noticed that BENACULT's product was not as good as competitors and was more expensive despite targeting market C and D. [2] After one year of operations, BENACULT likely had overproduction and piled up inventory since sales only reached 25% of forecasts, incurring losses. [3] To better market the product, changes would be made to the product mix, pricing, promotions, packaging, personnel, and positioning. [4] Diversifying into appliance assembly without expertise was not the right move and risked costs. [5] The corporation should not continue the business due to expected

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182 views3 pages

BENACULT Corp. Case Analysis

The document discusses a case analysis of BENACULT Corporation and their stand fan product. [1] It was noticed that BENACULT's product was not as good as competitors and was more expensive despite targeting market C and D. [2] After one year of operations, BENACULT likely had overproduction and piled up inventory since sales only reached 25% of forecasts, incurring losses. [3] To better market the product, changes would be made to the product mix, pricing, promotions, packaging, personnel, and positioning. [4] Diversifying into appliance assembly without expertise was not the right move and risked costs. [5] The corporation should not continue the business due to expected

Uploaded by

Marby Macob
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE ANALYSIS 4

1. Assessing the table comparing BENACULT Corporation with its competitors, what

did you notice?

In assessing the table that compares BENACULT Corporations with its

competitors, it can be observed that the product of BENACULT is not on par with its

competitors. It can also be noticed that the price of the stand fan that BENACULT is

selling is high and premium compared with the others even though their target

market is C and D, and they would just distribute their product to the community mall

and public market. Aside from that, the product hasn’t also been tested and doesn’t

have any promotions despite it being new to the market.

2. What could have gone wrong with the operations after one year? Elaborate.

After one year, the company would have an over production of the product

given that the sales only reached 25% of the annual forecast. Their inventories would

be piled up with the products that weren’t sold, and they would incur a lot of losses

because of this.

3. If you were given the chance to introduce the same product, how would you come

up with the marketing mix?

Product – I would also include different variation of the fan like the other brands and

not just the 16-fan blade.


Price – Despite the uniqueness of the product, I would lower the cost so that I would

be at par or just have a higher price compared to the other brands. The price should

not be premium but still competitive with the other brands.

Promotion – Given that it’s a new product with a unique feature, it’s just right that I

would promote it and advertise to people so that they would be informed and entice

with what I am selling. A social media advertisement would be a simple and cheap

promotional instrument to widely advertise the product.

Packaging - I would pack the product securely with a box and protective fillers so that

the item wouldn’t be damaged when transporting from the market to the buyer’s

place.

People – I would also hire people who have expertise in designing appliances so that

the product that would be manufactured would be of quality and functional. Aside

from that, I would also hire people that are good in marketing to be able to properly

promote and advertise the product to the market.

Positioning – For the positioning of the product, it should be of high quality but at par

or just a bit higher with the price of its competitors. The market should also be A and

B so that the product would be able to compete with the other brands.

4. Was the diversification the right move to do for the corporation? Why or why not?

For me, the diversification of the corporation to assemble stand fans is not

the right move. Given that they don’t have any background in appliances, therefore

they shouldn’t have continued with the project. I believe that the businessmen
could’ve invested in a project where they have a background or are expert in.

Diversifying in something that you don’t have any background would really be a

huge risk and would cost the company a lot.

5. If you can influence the decision of the corporation, will you continue the business?

Why or why not?

If I can influence the decision of the corporation, I would recommend that

they should not continue with the project. If they have decided to continue with the

project, the company will have a lot of losses. They wouldn’t only suffer financially,

they would also lose a lot of other resources that could’ve been used in a more

meaningful and significant project.

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