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    Pramtex's strategy includes investing in R&D, offering premium products at premium prices, collaborating with customers, and providing high-quality after-sales service. However, its product for Kimura was too technologically advanced, expensive, and complex. This, along with delays and unprofessional behavior, caused Pramtex to fail in Japan. In the short term, Kimura cannot be saved due to price and trust issues. However, in the mid-to-long term, Pramtex could potentially save the customer by improving its product, service, cost, and presence in Japan.

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    Pramtex's strategy includes investing in R&D, offering premium products at premium prices, collaborating with customers, and providing high-quality after-sales service. However, its product for Kimura was too technologically advanced, expensive, and complex. This, along with delays and unprofessional behavior, caused Pramtex to fail in Japan. In the short term, Kimura cannot be saved due to price and trust issues. However, in the mid-to-long term, Pramtex could potentially save the customer by improving its product, service, cost, and presence in Japan.

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    65 views2 pages

    1 PDF

    Uploaded by

    Pakshal Shah
    Pramtex's strategy includes investing in R&D, offering premium products at premium prices, collaborating with customers, and providing high-quality after-sales service. However, its product for Kimura was too technologically advanced, expensive, and complex. This, along with delays and unprofessional behavior, caused Pramtex to fail in Japan. In the short term, Kimura cannot be saved due to price and trust issues. However, in the mid-to-long term, Pramtex could potentially save the customer by improving its product, service, cost, and presence in Japan.

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    of 2

    1. What seems to be Pramtex's strategy?

     Invest in R&D to upgrade the technology


     Provide premium products at a premium price.
     Collaborate with customers who are developing new disk formats.
     Provide customers with high-quality after-sales service.
     Try to build a robust local presence
     Try to capture the new customers who want modern technology (First Mover)
     Try to enhance the perceived value of its product

    2. What is "perceived value" for a customer like Kimura?


     Perceived value means the perception of customers with regards to the product benefits and
    functions as compared to the competitor's product.
     For a customer like Kimura, perceived value means,
    - A product that satisfies the expectations of the company.
    - Product with Minimum cost which fits in their budget
    - High-quality after-sales service
    - On-time delivery with minimum glitches in the product delivered
    - Sort of surrender to their price quotation

    3. Who are the key players at Kimura in the purchasing decision? What are their respective roles
    and interests?
    Key Player Name Designation Role & Interests
    Mr Kimura President Signing Authority of Contracts & takes interests in dealing
    with a supplier
    Dr Nomura Senior R&D Advisor Research & analyze the type of technology which would
    satisfy the requirement of companies
    Dr Komoda Production chief Communicate machinery requirements for production &
    communicate to solve a problem with machinery, if any
    Dr Hashimoto Finance Director Takes decisions regarding finalizing of quotation and
    analyze the financial aspects of the company

    4. Why did Pramtex fail in Japan? What could/should it have done differently?
     Reasons for failure in Japan.
    - The high price of the machinery
    - Modern technology than required, which increased the cost of production.
    - Complex machinery system rather than more user friendly due to which their engineers were
    not easily able to detect the faults in the machinery.
    - Competitors met the expectations & offered price was within the budget of companies.
    - Delay in delivery and after-sales service in times of tight deadlines
    - Low Market presence nationally
    - Unprofessional Behavior

     Different Approach
    - Collect information about competitor's products, technology, pricing & strategy.
    - Try to meet the requirements of consumers & not over exceeding requirements above a limit
    that increases cost.
    - A proper communication channel to ensure availability if concerned authority if an emergency
    arises
    - On-time delivery and efficient after-sales service (Stick to commitment)
    - Efforts to increase the national presence
    - Achieve cost requirements of the company so that it fits within the company's budget
    - User-friendly & efficient machinery which is easy to operate
    5. Can this customer be saved? Short term? Mid to long term? Why? Why not?

     Short Term: (Can’t be saved)


     Reasons:

    a) In the previous order, the performance of our machine exceeded their expectations, but the
    mishaps might have created an inaccurate impression & decreased trust in Pramtex.
    b) Dr Nomura had played an important role during the previous order, which helped us
    significantly to fetch the order. However, we are unable to approach him in recent times.
    c) Mr Kimura and Dr Hashimoto were demanding a discount in the quotation, and we provided
    them with a 10 per cent discount, but still, the price might be not a fit in their budget. If that
    situation arises, we may be in a loss if we provide more discount.
    d) John found some minor changes in the machine done by Japanese engineer to make it more
    user friendly. We need to think about that part, and it would take time for us to find appropriate
    reasons and redesign specific components in the machinery, which would not be possible in
    short run.
    e) Competitors product can meet the requirements of the company, along with the budget
    allocated. In the short term, it’s not feasible to know about the competitor's product, pricing &
    Strategy to outpass them.
    f) We were fortunate enough that no mishaps happened with them, which could have damaged
    their reputation for not being able to meet the expectations of Disney. However, this has
    created doubts in their mind regarding our commitment.

     Mid to Long term (Possible to Save)


     Reasons:

    a) We can get information about competitors product, pricing and strategy & then we can also
    meet the requirements of the company, along with the budget allocated.
    b) We can redesign some of the machine components and can make it user friendly and more
    effective to operate.
    c) We can improve our after-sales service and assure them that we would be fulfilling the
    commitments within the agreed time.
    d) Cost of a product can be decreased by meeting the requirements of the company and not create
    a product which over exceeds the requirement, which otherwise would increase the selling
    price.
    e) We can deliver results for other companies which would act as evidence of our competencies
    and increase the trust, which would help us convert them from potential customer to real
    customer.

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