Q. Prepare a Note for information of the Board of Directors on the reasons for declining sales of your Company's products for the quarter ending March 31, 2003?
Ans. A perusal of the sales account for the last quarter reveals a very shocking detail. The sales of your product say soap and detergents have considerably gone down. During this period, there has been a burst of new brands of detergent powder and soaps are in the market. These have been marketed by establishments of great repute. New entrants have started building them on a small scale with an eye mostly on the local markets. The situation is moderately alarming, as they have made a considerable dent into our sales.
In order to take on the market, our competitors are selling their products at lower rates. Their modus operandi is sales and door-to-door publicity. This method provides several advantages.
(a) Young girls and boys are easily available and it is quite convenient for them to work on commission.
(b) People often buy things from these girls and boys in order to encourage them;
(c) Girls willingly show the good qualities of the product and their manners are persuasive and winsome;
(d) These offers are often accompanied with gift offers or bonus;
(e) Heavy discounts are provided on bulk purchases