Krishnamurthys Dilemma

Sales and Distribution Assignment

Siddardha Narayanasetty A012 NMIMS Hyderabad

Krishnamurthys Dilemma Case Facts:

Krishnamurthy was a trained Classical Musician of the Carnatic style of Music. Government was the sole broadcaster for about 15 years starting in 1975. Sun TV was the First South Indian Private Sector Channel. By 2005, almost all the channels were 24-hour channels with each program repeating twice a week. General Entertainment channels in Telugu were eight and in Tamil about Twenty. Film Based Entertainment is the major content of the entertainment channels. The shift in the trend took place in 2008 from being Film Based Entertainment occupying the prime slots to Popular Soaps and Reality Shows. KMC Trains Youngsters to Participate in music Competitions that are conducted in TV channels. KMC was a Pioneer in training and in 2002-2003, the annual enrollments increased from 100 to 500. Average Revenue per student is Rs.3000/month. He hired 3 trainers for Part time. The Compensation of the trainers has fixed and variable pay. Rs.3000 per month and a reward of Rs.30, 000 if their trainee got 1st in any big events.

Issues of Concern:
Enrollments for KM Creations have come down. The channels are paying less. Costs of Finishing Schools are very high compared to what it used to be when KM started in 2000.

Solution 1(Long Term):

Krishnamurthy Creations has to revive their business plan rite from the scratch to sustain in this highly competitive environment. This includes Segmenting & Targeting: Geography- Urban and Semi- urban DemographyAge- 15-35 Gender- Male & Female Income- Lower, Middle & Low- Upper PsychographicLifestyle- College Going Positioning: In order for the KM creations to get their business back on track, they need to target college-going students i.e. they can tie up with all the colleges in the city where KM Creations is already established because it

has got good reputation and is in the field since 2000. This can be done by performing a show at all the colleges and make sure that they provide training at a less price compared to that of the competitors.

Now what they need do is that they need to diversify from being catered to training youngsters for music competitions to providing training to anything related to Music, Dance, Acting. For this to happen, he needs to hire many trainers who are specialized in different disciplines. Now that the trend is towards popular Soaps, Reality Shows, Music Contests and Dance Programs, KM Creations can provide training to all the abovementioned events, which many people are interested. By doing this the enrollments will increase and they need not have to depend on any channel to pay them. By doing this, they can send their students for participating in TV channels* which in turn will be benefited their students won in any event. Now they are ready to send their students to any event in any TV channel. Once they become leader in this field, they can charge premium from then onwards.

Solution 2 (Short Term):

Since there is no time and the KM Creations has to look for some alternative to resolve the issues/challenges they are facing, they can acquire the top most Schools in the city which has good reputation and good enrollments so that they can cash on the recent trend without having any opportunity cost.

* Mentioned in the case that Starting from 2005, the TV channels called for services of schools like KMC asking them to send a panel of participants.