Group 10

• Tejaswini Mohta 134255• Divya Tewani 134215• Kuntal Gupta 134232

Low Cost Strategy

• A type of pricing method where a business sets a comparatively low price in order to enhance the demand for its product among consumers, as well as its competitive position in the market.

• A low cost pricing strategy is an alternative marketing approach that a business can use as an alternative to differentiation and focus pricing strategies, and tends to be most successful when the product is fairly generic and high volume production is possible.

Cipla- Caring for life• Cipla was established in 1935 with the vision of making

India self-reliant and self-sufficient in healthcare.• Cipla has received Scrip Award, Silver Plate Award, Dun &

Bradstreet, Pharma Excellence Award, ‘Outstanding Export Performance’, Listed in Forbes Asia’s, International Trade Award.

• They have over 2000 products in 65 therapeutic categories; with over 40 dosage forms, covering a wide spectrum of diseases ranging from communicable, non-communicable, common and emerging diseases to even rare diseases.

Cipla- Caring for life• Over the past 77 years, they have emerged as one of the

world’s most respected pharmaceutical names, not just in India but worldwide.

• There international business continues to be a major revenue driver for the company. And there overseas sales have consistently grown and represent almost 53% of our total income.

• They collaborate with others in industry, academia, government and non-government organizations and healthcare providers as a strategy to develop a diversified global business.

Low Cost Strategies

• Reduction in transportation cost and material cost.

• Changes in the product mix and higher contribution of Escitalopram in the US.

• Exposure to several low value markets and partners to reduce complexity.

GINGER HOTELS

•Ginger is an Indian hotel chain established by Roots Corporation Limited , a TATA initiative

•Formed under a new strategy called “SMART BASICS”

•It has won “Best Budget Hotel award” at golden star awards for the third year

•Currently there are 30 ginger hotels in India

Smart Basics™ Facilities and Services

• Food and Beverage options • Net Zone• Conference Room • Laundry facility• Gymnasium• On-site ATM• Doctor on call• Smart Space™ Rooms• Safe Zone

Cost Efficient System Of Ginger Hotels

• Trying to operate at full capacity http://www.gingerhotels.com/specials/index.aspx

• Reducing real estate costs• Selling directly to customers and bypassing distributor’s

cost• No bell-boys employed• Outsourcing the services• Provides services but limits human resources• Go green• Optimum space utilization

Micromax

Facts about the company..

• Micromax is an Indian consumer electronic company located in Gurgaon,Haryana,India.

• It started as an IT software company in the year 2000 working on embedded platforms.

• It is the 12th largest handset manufacturer in the world.

• It has become India’s 3rd largest handset mobile brand in the span of 5 years

• Entered the handset business in the year 2008

Continued..

• It has global business presence spread across the world.

• It has been manufacturing handsets through contract manufacturers in china,taiwan and other countries

• It has also setup a manufacturing unit in himachal pradesh

• The company works with the reputed chip makers including Mediatek,Mstar and Qualcomm.

Micromax in various articles…

• http://yourstory.com/2011/09/micromaxs-rahul-sharma-weve-been-inspired-by-jugaad-type-innovation/

• http://yourstory.com/2011/08/the-story-of-micromax-mobiles-meteoric-rise-by-co-founder-vikas-jain-techsparks-2011-grand-finale/

• Forbes India http://forbesindia.com/printcontent/10472?id=10472

• Micromax makes a shifthttp://www.thehindu.com/business/Industry/micromax-makes-a-big-splash/article5545998.ece

The Cost Drivers....

Cost efficient management of value chain activities• Improving supply chain efficiency• Using lower cost inputs wherever doing so will

not entail too great sacrifice in quality• Using communication system and

informational technology• Motivating through incentives and company

culture.

Revamping the VCS to lower cost..

• Does online selling(partnering with online shops)

• Coordinating with suppliers• Reducing material handling and shipping cost

• The company’s engineers, he reveals, are constantly pushing the limits by exploring what a mobile phone can do beyond voice, data and SMS.

• having a lean, cash-based supply chain means Micromax has to be much more accurate and faster in its forecasting as compared to its bigger competitors.

• not plagued with dead inventory, periodic schemes or issues around “price protection”.