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BUSINESS to BUSINESS MARKETING

CASE SUBMISSION
JACKSON: EVOLUTION OF BRANDS

Submitted to: Prof. Sanket Vatavwala

SUBMITTED BY: Group 5 (Section: B)

Mohammad Tariq Anwar Ansari MBA07031


Kartik Mangwani MBA07139
Amar Khattri MBA07124
Komal Goyal MBA07208
Siddhant Mohapatra MBA07227
JAKSON: EVOLUTION OF BRAND

The Jakson was an industry leader when it came to the development of acoustic diesel
generator sets. In addition to that, it was one of the most important original equipment
manufacturers for Cummins India Limited. Between the years 2000 and 2008, Jakson had an
average yearly growth rate of 23% throughout that time period. However, the corporation
faced difficult hurdles in the commercial world as a result of competitive factors and the
worldwide economic slump that began in 2008. In December of 2010, the upper management
of the firm was considering ways to improve the Jakson brand and get the business back on
track to achieve its goals.

5C FRAMEWORK:

Company:

• Founded by Satish Kumar Gupta in 1958.


• Production of Acoustic Diesel Engine set.
• In its product category it has 34% of the market share.
• CAGR of 23% from 2000 ($26.7 m) to 2008($209 m). Dropped to $179.73 m in 2010
due to Lehman Brothers crisis.

Customer:

• 29 sectors such as Agriculture, Marine, Manufacturing Sector, etc.


• Primary targets for growth: Infrastructure, Industrial, agriculture and commercial (sale
of gen set to these customers were a matter of season)
• Mostly targeted: Industrial segments: Cement, realty, automotive, power.

Competitors:

• Kirloskar Oil (21% market share)


• Mahindra Powerol (15%)
• Ashok Leyland limited (7%)
• Eicher engine (3%)
• others (20%).
• Players from UK, US China also started to enter the market.
Collaborators:

• Cummins Inc (Fortune 500, American Company)


• 54 channel partners (generated 10% of sales)

Context:

• Technological: Technologies that cause disruption, manufacturing processes that are


state of the art, backward integration, Powerful network of retail outlets and
wholesalers, Comparative analysis with multinational corporations, acoustic
enclosures that are resistant to noise CRM and ERP.
• Environmental: R& D to develop eco-friendly diesel engine set, to align with the
new measure of Central pollution control board.
• Economic: Growing competition as it had the largest market share (34%),2008 major
economic downturn, major customer segment, Infrastructure faced issue due to crisis
and hence its order book began to shrink.

DECISION PROBLEM:

Bewildered by the economic instability and buyer reaction, the Gupta brothers considered
ways to boost their sales. They intended to develop and diversify sustainably. Jakson
management debated how to strengthen the brand they had developed over the years.

The management team identified aligned areas of growth and diversification without altering
the core based on advice from one of the major four consulting companies. The team
pondered if the Jakson brand could weather the tough market. They considered their close
relationship with Cummins. The Gupta brothers wanted to select swiftly that suited Jakson's
skills and ideals. The Gupta brothers were bewildered by economic uncertainty and buyer
response. They wanted sustainable growth and diversification. Jakson's management
discussed how to boost their brand. Based on guidance from one of the big four consulting
firms, the management team identified growth and diversification opportunities without
changing the core. The team wondered if Jakson could survive the market. They thought
about Cummins. The Gupta brothers intended to match Jakson's talents and values quickly.
EVALUATION OF ALTERNATIVES:

After analysing the case we found three alternatives:

• Power generation and distribution


• Solar Power
• EPC

Alternative Pros Cons


Power Return on investment (ROI) from Can manipulate relationships with
Generation and backward integration. Distribution Cummins. A devastating blow to
Distribution of mechanical parts on an the well-established co-branding.
individual basis. There is a pressing need for
increased capacity building.
Solar Power In accordance with the rules set Massive outlay of capital in the
by the government. improved outset. We are moving away from
public perception of the company giant integrated factories that are
as a result of environmentally enormous. Uncertainty regarding
responsible electricity generating. the generation of power.
Exploring the possibilities of new
markets.
EPC Using the engineering prowess Keeping up with the competition
that is already available. No on a worldwide scale. Reliance on
substantial investments required. general macroeconomic
Taking use of the many training circumstances showing signs of
facilities. Support after the sale improvement.
and maintaining a positive brand
image for customers. Scope for
product development.
PLAN OF ACTION:

• Since the Electricity Act of 1948 required the procurement of licences, a new
department was established to manage the process of receiving orders from the
government and resolving complaints from customers.
• After a few years of the action plan being successfully implemented, the next step
toward making it sustainable is to make a modest investment and construct a solar
power plant with a modest output capacity.
• Given that EPC firms often have less expertise in this area, it may be beneficial to
acquire personnel from other related businesses in order to mitigate the impact of this
potential disadvantage.

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