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Following are the reasons behind the failure of Subhiksha: 

1. Rapid store expansion in various formats like groceries, medicines, mobiles, electronics, consumer durables and IT without sufficient fund in hand. 

2. Operated on very slim or zero margins resulting in higher cash outflow whereas inflows were almost nil. 

3. Not much attention to customer service resulted in bad quality service at store level. 

4. Downstream supply chain was not integrated resulting in lower fill rates and customer dissatisfaction. 

5. Expanded business through debt. 

6. The company did not have enough funds to manage its operations. 

7. Poor inventory management resulted in defective inventory, breakages, lower fill days and pile up inventory.

The goal of business is to make profit; which may be in terms of money, improved customer relations, goodwill, etc.

Business failure refers to a firm or business enterprise ceases its operations due to inability to make a profit or to bring in sufficient revenue to cover its expenses. The hidden and open reason for business failure is failure of the firm to generate adequate cash flow to meet its expenses.

Market rate method is useful for new entrepreneurs because of following reasons: 

1. Low risk: Keeping the price of the product equivalent to the market rate minimizes the risk of loss to a new entrepreneur. 

2. More chances of success: The prices fixed are competitive. This provides more chances of selling the new product in the market.

The main public relations tools include: 

1. News creation and distribution (media releases) 

2. Special events such as news conferences, grand openings and product launches 

3. Speeches and presentations 

4. Educational programs 

5. Annual reports, brochures, news-letters, magazines and audio-visual presentations Community activities and sponsorships.

We can conclude that a business has failed when it does not generate adequate cash flow to meet expenses.

The benefits of CRM are: 

1. Storage: By CRM all business data is stored and accessed from a single location. 

2. Central location: Storing all the data of all departments like sales, marketing, customer service etc. in a central location provide immediate access to the recent data when it is required. 

3. Collaboration: Departments can collaborate with each other with ease. 

4. Improvement: It helps the enterprise to develop efficient automated process to improve business processes. 

5. 360-degree view: It provides a 360-degree view of all customer information, knowledge of what customers want and matching it with existing applications to consolidate all business information.

Various types of brands available are: 

1. Individual brand name: Here, every product is promoted by the entrepreneur on the basis of a separate brand name, like: Liril—brand name with the “freshness” concept. Lux — brand name for “beauty soap for film stars” 

2. Family brand name (Umbrella branding): Here, the entrepreneur’s name or the company’s name is used for all the products, like: Kissan, is brand name for jam, sauces, etc. AMUL, has been used to market a large variety of dairy products viz. milk, ghee, butter, chocolates, etc. 

3. Corporate names: Here, entrepreneur can choose their corporate name or logo together with some brand names of individual products for example, Godrej, Tata, Bajaj, etc. 

4. Alpha-numeric names: It is mainly for industrial products. An alpha¬numeric name signifies its physical characteristics. For example, SX4, Liv52, ANX Grindlay, ilO, i20, etc.

‘Logo’ is an identifying symbol design, mark, sign for a product or business which stands associated with the entrepreneur’s offering. ‘Logo’ is an important feature or part of branding.

Logo is important for a company as it imparts a distinct identity to entrepreneur’s own brand.

Balsara Hygiene products, launched their ‘Promise’ toothpaste in 1978 and took an aggressive stand against its competitors. It then secured the second highest market share. It was due to the tagline “The unique toothpaste with time-tested clove-oil.” Clove oil is a traditional herbal remedy for the prevention of dental ailments and toothaches. This captured the minds of the consumers.

Penetrating pricing is the method of pricing in which the entrepreneur introduces its product in the market with low price compared to competitors. The low price increases the sale of the product tremendously. Normally for keeping low price, the profit margin is normally kept very low. The product thus captures the major part of the market e.g. Hero Honda, CD Dawn motorbike was introduced with the same pricing method. The CD Dawn penetrated into the market and captured major part of the market. Recently Bajaj CT- 100 also followed the tactics. Wheel active detergent powder kept the price of Rs. 20 per half kilogram. This also captured the market quickly. 

Advantages: Following are the advantages of penetrating pricing method: 

1. Quick rise in sales: Penetrating pricing results in the increase in sales with a very high speed. 

2. High turnover: The turnover of the enterprise is raised in very short duration. This strengthens the position of enterprise in the market. 

3. Return on investments: This method brings decent return on investments. The minimum profit margin is also assured with the sale of each unit. 

4. Best method for price elastic goods: When a small range in price brings more change in demand, such products have penetrating pricing as the best method. 

Disadvantages: Following are the disadvantages of penetrating pricing method: 

1. This method is applicable only to the products and services, which have high price elasticity. Thus, it is not applicable to all the products. 

2. Profit margin is low in the price fixed by such method. This profit may not be sufficiently compared to the cost of production and promotion. 

3. Turnover of the enterprise increases tremendously. Such enterprises have to prepare themselves for a situation of more financial requirements.

Promotion refers to all the activities undertaken by the producers to make the commodity known to the final users and trade. It includes advertising, word of mouth, press reports, incentives, commissions, awards, etc. Consumer schemes, direct marketing, contests, prizes, etc. also included in promotion.

1. ‘Logo’ is an identifying symbol design, mark, sign for a product or business which stands associated with the entrepreneur’s offering. 

2. It is an important feature of branding. 

3. It can be a graphic mark or emblem commonly used by enterprises or individuals to aid and promotes instant public recognition.

BTL refers to Below the line which targets identified small groups and aimed at leading to an actual sale.

Commonly used media options are as follows: 

1. Window display or office front: It is the external presentation of the firm/enterprise. An attractive, well maintained exterior with clear, bold sign writing is an essential start. Windows should be bright, attractively presented, clean and well lit at night. The display should be arranged neatly so that it has remarkable impact to attract attention. 

2. Press advertising: It is a form of general advertising and includes advertising in all press like newspapers, magazines and journals. This form is a key to image building, information dissemination and sales campaigns. It is also a very cheap compared to other forms. 3. Radio: It is an ideal medium due as it has ability to reach specific target groups like teenagers, grocery buyers, etc. It has only sound effect. It covers spot adverts, promotions or talk back/ RJ discussions. Most radio stations offer packages for advertising. 

4. Television: It is a powerful advertising medium as it creates impact through sight, sound and movement. It has high producing cost which makes it prohibitive for small businesses. 

5. Direct mail: This is a broad category covering direct communication with the consumer through email, post or fax. It can include newsletters, catalogues and letters. 

6. Outdoor: This advertising is done outdoors, including static advertising such as billboards, backs of street benches and bus shelters or mobile advertising displayed on buses, trains, taxis or towed signage.

7. Cinema: Firm can purchase cinema advertising for a set amount of screenings or runs. Most providers of this category offer packages which include production and screening of your advertisement.

Methods of negotiation are as follows: Integrative or win-win: Here each side is working towards a solution where everyone wins something. They can make trade offs and look at multiple issues. The involved parties may try to expand the pie rather than divide it. This method fosters trust and good working relationships. 

Distributive or win-lose: Here one party gets what it wants, and the other party has to give something up. This type of negotiation does not lead to lasting or positive relationships. Here one party remains unsatisfied and so it does not lead to a healthy relationship. Inductive: This method involves starting on small details and working upward until a settlement is reached. Here the solution is sought from the grass root level by understanding each and every minute detail. For example, an employer and labour union are negotiating the details of an employee pension and investment plan. Small details are addressed one at a time. 

Deductive: Deductive negotiations start with an agreed upon strategy. They rely on established principles and a formula to frame the negotiation while the parties work out the details. Here each parties is the gainer and jointly the result is met. It is based on the mutual agreement. 

Mixed: Mixed negotiations are the most common, they are a blend of inductive and deductive methods.

Lifebuoy — It stands for ‘Good health’ Lifebuoy liquid, Lifebuoy Personal, Lifebuoy Plus and Lifebuoy Gold to cover various price sub-segments in the health segment. 

Liril — brand name with the “freshness” concept. 

Lux — brand name for “beauty soap for film stars”.

Single window purchase leads to many problems like:

1. Dis-interest or non-availability of other suppliers during the time of crises.

2. Favouritism of any time in business only leads to short term benefits and has long term loss of goodwill and reputation in the market.

Customers prefer enterprises with assured after sales service because of following reasons: 

1. Durability: The durability of the product increases when an effective after sale service is available. This point is stronger in the mind of the consumer. 

2. Convenient: The use of the product becomes more convenient when it runs with less problems or hurdles. 

3. Maintenance: The maintenance of the product becomes easy as this responsibility is passed on to the seller when after sale service is prompt.

Non-durable products include vegetables, milk, tobacco, cigarettes, shampoo, fruits, soaps, milk products, etc.

Scooters, cars, motorcycles, televisions, music systems, sewing machine, etc. require after sales service.

Remote market is the form of market where the product is sold to greater distances, and deep inside the country i.e., rural area. The shops of such market are not in direct touch with the producers; also it takes time in reaching the products up to consumers. Distribution system for a remote market: 

Following procedure can be adopted for arranging distribution system for a remote market: 

1. Appointment of dealer: Dealers will be firstly appointed by the producer through advertising and interview. 

2. Deposit from dealers: For minimizing the risk a suitable amount can be taken as deposit from the dealers. 

3. Target for dealers: Producers can enter into contract with dealers for a targeted sale. This may be for monthly target, half yearly target or yearly target. 

4. Incentives for achieving target: Dealers achieving the target before the stipulated time can be rewarded by providing, incentives, gifts, free trips, etc. 

5. Distribution centres: Regional distribution centres can be established at various place by the entrepreneurs. At these centres, sufficient stock of products can be maintained. Dealers can obtain the product from the nearest centre. 

6. Monthly feedback: Entrepreneurs can obtain monthly feedback from dealers in order to monitor the sale procedure. After knowing their difficulties, the entrepreneur can sort out problems of the dealers.

“Establishing short or long term objectives, usually incorporating deadlines and quantifiable measures.”

Monopolistic market is a form of market where there are large number of buyers and sellers selling differentiated products. There is presence of non-price competition. The sellers on the promotion of the product do large expenditure e.g., vegetable oil, tape recorders, etc.

A brand or part of it that is given legal protection against its use by other firms is called a trade mark. It is a legal term, protecting the seller’s exclusive right to use the brand name/mark.

Trademark refers to words, names, symbols and product design features that are used to distinguish the products or services of one manufacturer or seller from another. 

Arvind must go for registering as: 

1. it helps in preventing others from copying. 

2. there is legal action available if anybody is found copying the product or any related aspect.

Trademark is a recognizable sign, design or expression which distinguished products or services of a particular trades from the similar products or services of other traders.

1. Brand name is “that part of a brand which can be spoken like Asian Paints, Pepsi, Uncle Chips, etc.” Brand names are signals that carry meaning in the minds of consumers., E.g.“Wal-Mart”. Trademark refers to words, names, symbols and product design features that are used to distinguish the products or services of one manufacturer or seller from another.

2. Brand helps in identification of the product of a company, while trademark helps in preventing others from copying.

3. If a brand has not been registered, anyone can copy it, and there is no provision of any penalty, while in case of trademark violation, there is legal action available.

1. Variable Pricing Method. 

2. Following are the main features of the Variable Pricing Method: 

(a) Paying capacity of the customers can be considered while selling. 

(b) Volume of the product purchased by the customer affect the pricing. Low price can be charged if volume of sale is more. 

(c) Bargaining power of the customers affects this type of pricing. 

(d) Acquaintance of the firms with the customers has an impact on the sale.

Trade secret is any confidential business information which gives an enterprise a competitive edge over its competitors. For example, Coca-Cola formula.

Following factors affect the policy of packaging:

1. Quantity of the product.

2. Quality of the product.

3. Safety of the product.

4. Choice of the customers.

5. Environmental factors.

6. Specific requirement of the product.

7. Cost of packaging material.

Processes and materials employed to contain, handle, protect, or transport any commodity. Packaging is done to attract attention, assist in promotion, provide machine identification (barcodes, etc.), impart essential or additional information, etc.

Base pricing and discount method is the method in which the entrepreneur fixes one price for its commodity. This price is calculated in advance considering the point that discount will be offered during the sale. Here, the discount offered is of various types. Depending on the type of customers the various rates of discount are fixed. Discount is offered to all the customers but at different rates. The wholesaler discount may be different from, volume discount, discount for transaction and off-season discount. Base price and discount = predetermined price discount

Following are the advantages of penetrating pricing method: 

1. Quick rise in sales: Penetrating pricing results in the increase in sales with a very high speed. 

2. High turnover: The turnover of the enterprise is raised in very short duration. This strengthens the position of enterprise in the market. 

3. Return on investments: This method brings decent return on investments. The minimum profit margin is also assured with the sale of each unit.

4. Best method for price elastic goods: When a small range in price brings more change in demand, such products have penetrating pricing as the best method.

An entrepreneur can employ dealer for sales when: 

1. The product is having longer shelf- life. 

2. The size of market is very large. 

3. Market is spread to larger distances. 

4. The expenditure on the product is very small e.g., spoons, shampoos, etc. 

5. The producer is willing to take less risk. 

6. The large-scale production is undertaken by the producers. 

7. The entrepreneur launches a new product. 

8. Quick transportation arrangements are planned.