INDCOSERVE: Stirring Up

Agricultural commodities often are characterized by two aspects, viz., seasonality, and shelf life of the produce. Further, in countries such as India there are significant public policy dimensions (governmental regulation on pricing and markets etc.) that critically influence production, distribution, and marketing of several agricultural commodities. Furthermore, unlike their counterpart in manufacturing, agricultural commodity supply chains typically are not well-organized in such countries. Therefore, prevalence of cooperatives as an organization structure for managing several supply chain activities is also a common feature. This case has contextually been set under these conditions and it deals primarily with the issue of marketing of tea. In addition to the above-mentioned issues pertaining to marketing of agricultural commodities, tea poses unique challenges arising out of numerous varieties/grades. Owing to several of these aspects understanding the factors that influence profitability of a firm engaged in procurement, production, marketing and brand creation of tea makes an interesting study for a student of management. The case thus offers a multidimensional perspective to the problem of improving the profitability and points to various alternatives in the hands of the management to address the same. The case can be used in the core marketing course, perhaps, as a capstone case toward the end to highlight the interrelationships among different elements of marketing. The case can also be used in other courses to introduce challenges of managing cooperatives, use of auction as the procurement mechanism and also to illustrate the use of Internet as a primary marketing channel.

• Branding
• Commodity markets
• Negotiation strategies
• Marketing management