CASE STUDY - 2

Subject:MARKETING MANAGEMENT

MATS UNIVERSITY, MATS LAW
SCHOOL

Allotment Date: 09
th
Sep, 2014
Submission Date: 11
th
Sep, 2014

Submitted To:
Ms. Anushri Bhattacharya
(Assistant Professor)
Submitted By:
StutiBaradia
(Student)
BBA LLB, Sem 3 (2
nd
year)
CASE
Sachin and Virag are two enterprising youth, they have passed out from IIM Bangalore, they
though instead of doing a job, they will launch fresh vegetables in Indian markets. Having learnt
of the future conventional foods they decided to venture into cultivation of mushrooms.
Mushrooms are known to be the best alternative food for vegetarians. For sachin and virag fund
raising was a serious handicap for mass production. However, the first trial batch of mushrooms
that they produced was bought by Star Hotel in Bangalore. Further the hotel placed orders for
supply of 20 kgs every day.
Now mushroom industry is run by small entrepreneurs like sachin and virag, another big player
named, Ashthavinayak mushrooms equipped with cold storage facilities was more interested in
the export market. Sachin and Virag have set their sights high, they aim to sell mushrooms in a
very big way all over India. Mushrooms had a great market potential and is a perishable food.
On the basis of analyzing the case, answer the following questions:
Question 1
How can you advice Sachin and Virag to increase the consumer awareness about this new food?
Question 2
Give the suitable title to the case.
Question 3
What would be your suggestions for increasing sales and strategies for mushrooms?





Summary
Two enterprising youth, Sachin and Virag , who are passed out from IIM Bangalore.
They decided to enter into an Indian market with the idea of launching of fresh
vegetables.
Being aware about future conventional foods, they decided to enter into cultivation of
mushrooms as Mushrooms are known to be the best alternative food for vegetarians.
For mass production they found fund raising as an obstacle.
The first trial batch of mushrooms produced was bought by Star Hotel in the city and
gradually 20kgs per day supply was ordered by the hotel.
Mushrooms being a perishable food also had a great market potential, its industry was
run by small entrepreneurs as well as Ashthvinayak mushrooms, a big player in
mushroom market.
Ashthvinayak Mushrooms was interested in export market.
Sachin and Virag have clear sights and aim to sell mushrooms all over India.








SWOT Analysis
SWOT stands for Strength, Weaknesses, Opportunities and Threats.
Strength
- Mushrooms are best future conventional
foods.
- Mushrooms are best alternative food for
vegetarians.
- Mushrooms had a great market potential.

Weaknesses
- Mushrooms are perishable in nature.
- Small entrepreneurs like Sachin and
Virag face fund raising is a handicap for
mass production.
- New in the market.

Opportunities
- Fresh vegetables are more in demand
instead of preserved ones.
- Sachin and Virag being a youth possess
greater talent of exploiting opportunities.
- In a big city like Bangalore, mushrooms
are higly in demand as in kitchens of
hotels and restaurants.
- Opportunities of export and marketing of
mushrooms all over India.
Threats
- Threat of competitors like
Ashthvinayak Mushrooms.
- Less competence in terms of storage
facilities as they are engaged in small
enterprise.
- Strong hold of big players (competitors)
in the market like Ashthvinayk.

Answer 2:
Title of the case
Mushrooms grabbing the market its strategies, sales
and awareness
Answer 1:
As Sachin and Virag are running small enterprise, having limited resources of production and
funds, therefore, they should adopted reasonable and sustainable approach for promoting and
creating awareness of mushrooms.
Following promotional activities would be advisable to Sachin and Virag for increasing the
consumer awareness about this new food i.e. Mushroom:-
1. Consumer awareness can be created by distributing samples in stores
2. Consumer awareness can be created by test marketing. Through sales persons and
customer feedback/response for the product.
3. Awareness can also be created through advertising in newspapers.
4. A recipe booklet related to mushrooms can be given to customers purchasing other food
articles.
5. Highlight the benefits of mushrooms to the customers and convince them to purchase it.
6. Through T.V. programs like Master Chef or any other, they so the potential of the food as
the best alternative for vegetarians.

Answer 3:
A successful marketing program or strategy means that grows or increase their income status,
which in turn creates confidence in their ability to grow mushrooms profitably and an
appreciable increase in their sales.
If I would have been in the shoes of Sachin and Virag, I would have adopted following
strategies for increasing sales of mushrooms:
1. First of all, it would be suggested to both of them to identify their target customers
Targeted Customers for Mushrooms may be:
Hotels
Household sector
Restaurants
Industrial canteens, etc.
2. Then after identifying the target customers they should adopt best of the above listed
promotional activities and they can also use different kinds of selling modes for different
targeted customers.
3. They should slowly and gradually expand their business of mushrooms by analyzing
competitors strategies and policies.
4. Product having being perishable, company should go for faster and effective distribution
network having cold storage facility like their competitor, i.e. Ashthvinayak Mushrooms.
5. They should adopt revised strategies for attractive packaging and distribution as this will
promote their brand name and thereby increasing their sales.
6. Bringing innovation to the product:
- By exploring various marketing options for fresh mushrooms depending on
transport, infrastructure as this will add innovation to their food article and
thereby resulting in more control over the market as compared to their
competitors, and
- By adding value and increasing the shelf-life of the mushrooms by creating
processed products, including dried or pickled mushrooms, sauces, teas, extracts,
etc.
7. Becoming organized and teaming-up with other producers, to bulk up on volume and the
variety of mushrooms, and attract traders regularly to enable reliable sales of the
perishable produce.
Adopting these strategies will gradually help them to grab the mushroom market and strengthen
them to compete with their competitors.
Keeping in regard that successful marketing strategies differ according to region, transport
infrastructure, market accessibility and consumer preferences.



Conclusion
In conclusion, many of the challenges faced during mushroom cultivation activities are not
uncommon to other challenges as still faced by small-scale rural producers like Sachin and
Virag. But by adopting proper awareness and sales strategies Sachin and Virag would reach the
heights in the world of Mushrooms.
























END OF CASE STUDY-1