Ajanta shoe company faced a tough competition after opening up of economy before that it was enjoying the situation of exceeding demand over supply in the economy. The company manufacture different types of footwear for men, women and children. Quality and durability of the product is good which were sold at lower prices. In long run consumer will find superiority of the product. The company must work at its full capacity by offering discounts, doing promotion, by launching low and medium price product and using market penetration pricing strategy.

1. Submitted by:-
Kratika Porwal
Aditi Maheshwari
Sheetal Patel
Guided By:-
Prof. Pragya Kesari
MBA (ft) 2nd sem sec-D
Marketing Management

2. AJANTA SHOES COMPANY LTD
Case study:-

3. Content
Introduction
SWOT Analysis
i. Strength
ii. Weakness
iii. Opportunity
iv. Threats
Question answer
i. Q-1
ii. Q-2
iii. Q-3
 Conclusion

4. The case is about a footwear company named as Ajanta
shoes company who was facing a decline in its sales due
to the huge competition from both domestic and
international market. In 1997 the executives of the
company decided their pricing strategies in order to face
fierce competition in the market. There were many
companies who was facing the same problem, many
more companies like
Bata shoe company, the leader in the market was also
facing the same problem to gear up with these problem
they improving popular brands and launching new brand.
There pricing strategy was to appeal to middle class
family. Other competitors were Liberty, Action, Lotto etc.
Introduction

5. Ajanta shoe company manufactured their footwear at its
factory situated in Kanpur . There product mix consisted of
men , women and children footwear. In each category it
offer shoes, sandals and slippers. The price range was from
200-1200rs.
Reebok , Adidas , Nike were also trying to establish a niche
in the premium market segment. There promotional
strategies are like organizing fitness exercise workshops,
road races and using celebrities for promotion.
There company was using 30% of its capacity because of
lack of order. Manager felt that price was not the major
factor but due to lack of awareness among consumers
about the quality of the product that stood in the way of
increasing sales.
Cont……

7. 30 years of experience in these market
Product covers all categories in shoes like men, women,
kids.
Manufactures different segments of products like
slippers, sandals, sports shoes etc.
Quality and durability of the product is good
Genuine leather is used & sold at lower prices
In long run the consumer have superiority of the
product.
Product of the company satisfy the customer i.e. its
quality, durability and price.
Strength

8. Discounts and advertisements were less as compared to
MNC’s and other domestic company’s.
Unable to attract younger generation as they were
swayed away by advertisements of MNC’s & preferred
to buy trendy shoes though they were very expensive.
Lack of order from dealers dues to which company is
facing loss and as a result company’s 70% capacity
remain under utilize.
Company is heavily relied on its sales person and
dealers to get latest market trend which cause delay in
launching new product in the market.
Weakness

9. To capture more market share company has to launch
new brand in the market focusing the younger
generation preferences i.e. trendy.
To add more new town to the existing towns were the
product is being already sold like Bata.
Use innovative and creative promotional strategies like
organizing fitness exercise workshop, road races and
celebrities as Reebok and Adidas were doing.
Improve capacity utilization
Reduce the price of the product to improve sales as
suggested by dealers also to improve its sale.
Introduce low and medium price range in footwear and
also approach to rural class people.
Opportunity

10. There is a huge competition from MNC’s and domestic
companies in the market.
MNC’s and domestic company started persuading the
dealers of Ajanta shoes company by offering them
several incentives.
Should not focus on mass marketing positioning like
MNC’s which aims at premium market.
Threats

11. QUESTIONS

12. Company’s pricing strategy:-
 Ajanta shoes company is there in the market from 30 years
but their pricing strategy of the product is in face of fierce
competition in the markets after opening up of economy from
leading MNC’s.
 They were using segmented pricing strategy based on product
form pricing by selling the product at two or more prices of
same brand.
The Pricing objective should be:-
when they launch trendy shoes in the prices of the product in
the initial stage always be low so as to attract customers and
to grab a large market share, then should increase price over a
period to earn more profit which is called market penetration
pricing strategy. Otherwise they have to value pricing.
Evaluate the company's pricing strategy.
What should be the company's pricing
objectives ?

13. Promotion: the company should promote its product and
should give discount on occasions like e.g. stock clearance
sale.
Advertising: The company should make the customers
aware about its product and the quality.
Value pricing method: company should adopt this method
and win loyal customers by offering them high quality
products.
Goodwill and Quality: If the company use its goodwill of 30
years for maintaining the best quality in reasonable price,
which is the unique strength of it, that will increase the
sales.
By launching trendy product which were preferred by
customers.
What steps company should take to
arrest decline in sales ?

14. Product- company can implement some innovative idea to
make the product more attractive and can launch new
varieties of shoes as company has recently started offering
sports shoes.
Price- company can follow market penetration pricing
strategy instead of just focusing onto manufacturing better
quality at lower price.
Place- company can approach new towns and rural areas
with low and medium price product which will attract
them.
Promotion- company can organize some event or work
shop to promote and launch new product and can use
celebrity to promote there product as Reebok and Adidas
has done.
What changes are needed in the company's
marketing mix strategy to maintain and
improve its market share and profit goals ?

15. Ajanta shoe company faced a tough competition after
opening up of economy before that it was enjoying the
situation of exceeding demand over supply.
The company manufacture different types of footwear
for men, women and children. Quality and durability of
the product is good which were sold at lower prices. In
long run consumer will find superiority of the product.
The company must work at its full capacity by offering
discounts, doing promotion, by launching low and
medium price product and using market penetration
pricing strategy.
Conclusion

16. THANK YOU