A Stitch in Time Saves Nine

A STITCH IN TIME SAVES NINE

Satyam founded Sasi Beverages in 1991. Located in Tirupati, a town in Andhra Pradesh, a semi-urban area, he established a successful family operation fostering friendly relationships with trade and local customers. The major bread winner of the firm is its coffee blended with chicory in different proportions. Priced reasonably, the 'Bharat' brand attracted the lower and middle income groups in the towns and rural areas of Rayalseema region.

After completing 10 years of existence in the market Satyam decided to have a relook at the firm's operations and prospects. "This has become necessary" he says "because times have changed. We have been doing the same things over the years profitably. But now, many things look different even in the rural areas. The boiling point is reached". He sat with Sasi, his wife and business partner to discuss the measures to be taken. They together examined the 10-year sales data given in

|Table I |Sales History of Bharat |

|Year |Sales value (Rs lakhs) |

|1992 |25 |

|1993 |30 |

|1994 |36 |

|1995 |43 |

|1996 |49 |

|1997 |58 |

|1998 |68 |

|1999 |78 |

|2000 |84 |

|2001 |85 |

Sasi: The figures show that the sales have stagnated last year. Even in the first quarter of this year the movement of the product is not satisfactory compared to the previous year. This is no good against the said market growth rate of 15 per cent in the trade journals.

Satyam :Well! The reason may be the marketing agency. I doubt their commitment. I think we have to go on our own.

Sasi: May be it is the consumer. Now there is...