TANCET 2023 Solved Papers

Question Numbers: 11-20PASSAGE II'Farm foods' is a company engaged in producing and selling of organic food products (millets, pulses, Organic drinks, Vegetables, fruits, etc.). It sustains in the consumer market for a long period and captured a good market share. Farm foods have a long standing, quality-oriented market place, market share and surviving with good monetary results. The factory is situated in Faridabad which is very far from the main consumer market and other bigger towns in the surrounding area. This distance from the main consumer market further attributed to higher cost of the product being marketed by Farm foods.'Nature one' is another company started few years back and came up with its factory located near Narela, a few kilometres from the main capital town and other bigger towns in area. The organic foods products being produced by this company was more or less same in taste, flavours, as that of Farm food's organic foods. In view of its proximity with the consumer cities, the transportation cost being incurred by the 'Nature one' is comparatively less. Furthermore, being a new enterprise, it has controlled overhead expenses. It is an advantage to their credit; they priced their organic foods little less than that of Farm Foods. In a short span of time, Nature one slowly penetrated into the market and gained market share of Farm Foods and took a slice of Farm Food's Business.Farm Food is now faced the problem of competing with its new rivalry company Nature one without degrading the quality of the product. Farm Foods, however, cannot reduce the price of their product as it lowers the image of the company in the market and which in turn reduces the profit. The CEO of the company decided to conduct a detailed market survey and study all types of organic food products being marketed in the country. By examining competitors' products, the results of the survey reveals that the product being marketed by Farm Food is of high quality, quick consumption items having much longer shelf-life as compared to other products available in the market. The products were packed in tin containers. After the consumption of contents inside the tins it becomes scrap without any resale value. The CEO of Farm Food decided to make a pre-project study to identify different packaging options.The study revealed that they can either go in for glass jars or flexi-packs or for both. As the product enjoys high quality and has a longer shelf life, it can withstand any climatic conditions in flexi-packs and thereby drastically reduce expenditures on packaging costs. The results also showed that the tin containers take 31% of the total cost of product. However, going by flexi-packs, the same can be reduced to nearly 20%. By this saving, packaging costs can be released to the customers by way of reducing the price of the product. Reduction in price will not lower the image of company as the price reduction is done with the background of change in packaging.