5C Analysis and SWOT Analysis. 5C Analysis is done to analyse the market environment and internal and external (micro and macro environment) analysis.

1. 2014
PrajaktaTalathi
SP JainSchool of Global Management – ContemporaryMarketingManagement
[B2B MARKETING ASSIGNMENT
- SELLER]
Seller Perspective

2. B2B Marketing Assignment - Seller
Prajakta Talathi – GSEP13CMM031 Page 1
Table of Contents
Situational Analysis....................................................................................................................... 2
5C Analysis............................................................................................................................... 2
Company .............................................................................................................................. 2
Competitors.......................................................................................................................... 2
Customers ............................................................................................................................ 2
Collaborators ........................................................................................................................ 3
Climate.................................................................................................................................3
SWOT Analysis.......................................................................................................................... 3
Strength................................................................................................................................ 3
Weakness............................................................................................................................. 3
Opportunity.......................................................................................................................... 3
Threats.................................................................................................................................3
BATNA.........................................................................................................................................3
Assumptions............................................................................................................................. 3
Calculations.............................................................................................................................. 4
Possible Minimum Price................................................................................................................ 4
Assumptions............................................................................................................................. 4
Calculations.............................................................................................................................. 4
ZOPA ...........................................................................................................................................5
Assessment of Possible Prices........................................................................................................5
Scenario Based Calculation........................................................................................................5

3. B2B Marketing Assignment - Seller
Prajakta Talathi – GSEP13CMM031 Page 2
Situational Analysis
The situational analysis can be done by performing 5C Analysis and SWOT Analysis.
5C Analysis
5C Analysisisdone toanalyse the market environment and internal and external (micro and macro
environment) analysis.
Company
Mahek Masala ProductsPvt.Ltd. Dealsintradingand processingof specialisedspicesespeciallyfrom
Kerala,Spice Capital of India. Mahek Masalais an establishedandreputedcompanyandispresentin
the spice market since many years. The last year turnover was INR 120 Crores with the purchase of
only INR 110 crores.
Mahek Masala has recently obtained 1000 kilograms of high quality raw cinnamon bark batch.
Cinnamononce cleanedfromimpuritieswillbecome a rare and premium quality product. The floor
price of the productis INR360. Cinnamoncan be used to prepare sweets, canned baby product and
Ayurvedic medicines etc.
Mahek Masala dealsonlywithpremiumqualityproductsandnotwithcommonlyusedsecond-grade
cinnamon powder. This is a differentiating factor of Mahek Masala.
Competitors
Competitorsgenerallydeal withsecond-grade cinnamon powder which is used widely. The market
price of these products is INR 320.
Customers
Since MahekMasala dealsonlywithpremiumqualityproductsandnotwithcommonlyusedsecond-
grade cinnamon powder, Mahek Masala caters to a very niche segment of customers.
The 2 potential customers are:
 Marex Pharma Ltd.
 Market leader in baby-food segment
 Possesses good market reputation
 Offered to buy 700 kilograms of cinnamon at INR 390
 First time customer
 Offshoot Intermediaries Limited
 Diversified pharmaceutical company
 Family run enterprise
 Employees with smart market sense
 Indicated to buy the entire 1000 kilograms of cinnamon product
 Better payment terms than Marex Pharma
 Not in good terms with current government due to quality problems in one of its
drug formulation

4. B2B Marketing Assignment - Seller
Prajakta Talathi – GSEP13CMM031 Page 3
Collaborators
Suppliers mainly belong to Kerala and provide excellent quality of cinnamon and other spices.
Generally Mahek Masala deals directly with its customers.
Climate
Government is soon to issue an ordinance to mandate the quality of ingredients to be used in the
baby foods. Also a price subsidy of 10% will be granted to baby-food manufacturers who will be
using the high-grade cinnamon powder.
SWOT Analysis
Strength
 Sells only premium quality spices
 Well established and reputed company
 Last year turnover was INR 120 Crores with the purchase of only INR 110 crores
Weakness
 Most users tend to use second-grade products
Opportunity
 Government to issue an ordinance to mandate the quality of ingredients to be used in the
baby foods
 A price subsidy of 10% will be granted to baby-food manufacturers who will be using the
high-grade cinnamon powder
 2 potential customers:
1. Marex Pharma Ltd. – Offered to buy 700 kilograms of cinnamon at INR 390
2. Offshoot Intermediaries Limited – Indicated to buy the entire 1000 kilograms of
cinnamon product
Threats
 Shelf life of premium quality cinnamon is only 3 weeks
 Floor price of cinnamon is INR 390 whereas those of competitor’s second-grade cinnamon
powder is INR 320
BATNA
Assumptions
The following assumptions are considered:
 Cost of manpower resources
 Cost of transportation
 Cost of maintaining the inventory
 Cost of selling

5. B2B Marketing Assignment - Seller
Prajakta Talathi – GSEP13CMM031 Page 4
Calculations
The Best Alternative to a Negotiated Agreement would be calculated as:
No. of Kilograms Price per Unit Total Price
Cost of manpower resources (assumed) 1000 3 3000
Cost of transportation (assumed) 1000 2 2000
Cost of maintaining inventory (assumed) 1000 2 2000
Cost of selling (assumed) 1000 3 3000
Purchasing Cost 1000 290 290000
Processing Cost 1000 70 70000
Total COGS 1000 360 370000
Selling Price to Marex Pharma 700 390 273000
The shelf life of cinnamon is 3 weeks only, in case the product does not get sold before 3 weeks, it
will incur a loss of INR 360,000.
In case 700 kilograms of cinnamon are sold to Marex Pharma at INR 390 per kilogram, loss incurred
will be 360000 – 273000 i.e. INR 88,000.
To break even, rest of the 300 kilograms of cinnamon can be sold at minimum of 88000/300 = INR
293.33. This price is below the price of second-grade cinnamon, hence there are chances that the
remaining300 kilogramsof cinnamoncanbe soldat goodprice. Also since the quantity to be sold it
less, a big customer is not required; few small scale customers will also suffice.
Possible Minimum Price
Assumptions
To determine the minimum price the following assumptions are considered:
 Cost of manpower resources
 Cost of transportation
 Cost of maintaining the inventory
 Cost of selling
Calculations
Calculations (per kilogram):
Cost of manpower resources (assumed) 3
Cost of transportation (assumed) 2
Cost of maintaining the inventory (assumed) 2
Cost of selling (assumed) 3
Purchasing Cost 290
Processing Cost 70
Total 370
From the above calculations,itcanbe seenthatthe possible minimum cost is INR 370 per kilogram.

6. B2B Marketing Assignment - Seller
Prajakta Talathi – GSEP13CMM031 Page 5
ZOPA
The pitchingprice of cinnamon powder decided by the Mahek Masala is decided as INR 800. Hence
the ZOPA (Zone OF Possible Agreement) lies between INR 370 and INR 800.
These prices are based on calculations only. The subjective aspect of selling premium quality
cinnamon can also be considered and accordingly the minimum price and ZOPA can be calculated.
The other factors to be considered are:
 Government to issue an ordinance to mandate the quality of ingredients to be used in the
baby foods
 A price subsidy of 10% will be granted to baby-food manufacturers who will be using the
high-grade cinnamon powder
 OffshootIntermediariesLimited –Notin goodtermswithcurrent governmentdue toquality
problems in one of its drug formulation; hence now will need to purchase only premium
quality products
Considering these aspects, Mahek Masala should try to sell excellent, rare and premium quality
cinnamon at higher prices.
Assessment of Possible Prices
Scenario Based Calculation
Best Case Average Case Worst Case
Selling price per kilogram 800 585 370
Profit per kilogram 430 215 0
Total Profit (1000 kilograms) 430000 215000 0
*The above prices are in INR
Based on the above calculations, anything between average price and best price will help Mahek
Masala get a better deal and make good profits.