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on the basis of the information given in the following case.
Due to increased competition, Ginger Automobiles, the Indian subsidiary of Pepper Automobile Company (PAC) reported lower sales and profits. PAC expects its new model Limo, developed especially for value conscious customers of India and China, would revive its fortunes. In order to prevent customers from uying competing products, PAC announced the launch of Limo six months before schedule. Due to unrest in its Indian supplier’s plant, deliveries of essential components for its main plant was hampered, and hence it decided to launch Limo in China only as per the original plan. Within a short span of time, Limo captured 30% market share in China, which was 200% higher than expected. Indian customers who had looked forward to purchasing Limo were becoming increasingly unhappy to the non-availability of Limo in India. Ginger’s dealers were worried about loss of business from the customers who might switch to other cars.
Unhappy customers will not only leave the company, but also spread negative publicity about the company. The best way, among the options below, to deal with customers is
The question asks for a way to appease the customers who were expecting to buy the Limo in India.
Option A: Suggesting the customers to wait. Since the failure to meet the deadlines in time was the responsibility of the company, requesting them to wait would only worsen the situation for the dealers.
Option B: Offering the customers a discount on other PAC models. Though this is an act that might create losses for the company. This might appease the customers and might avoid the customer's wrath towards the company. But since the failure to meet the deadlines was from the company's side they must act to gain the favor of customers.
Option C: This is an act of uncertainty because the PAC cannot be blamed for the disruptions in the Indian supplier side. If they delay the opening in the China market to expect a simultaneous start with the Indian market they might face losses in both the market.
Option D: Promising the top management of sales will in no way appease the customers and hence must be avoided.
Option E: Suggesting the company to manufacture the components in India or China. Since they were already being manufactured in India. This advice is not offering anything new. The pros and cons of manufacturing in a Chinese plant for Indian market are not clear
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