2. Was it worth to depend on costly approach (approx. Rs. 25,000) to perform the marketing research?

Mr. Ramesh Gupta, a successful textbook author and Management professor, retired from his job in 1983 when he was 50 years old. During the job, he saved a very good amount. After seven years, he visited the Gulf and came across a very innovative type of business. It was a very small gas station specialized in oil changes and lubrication jobs. For this, the old gas station had been remodeled; the gas pumps had been removed, with a sign board that read "PETROLEUM PRODUCTS-lower cost Lesser Time." Ramesh observed the converted gas station closely. In the next month, Ramesh again visited there to talk to the owner, Mr. Hussain, regarding complete details of the business. He paid Hussain for his advice and information and promised never to compete directly with Hussain in any respect. After this, he talked to his lawyer and accountant, and started a new busi- ness-Bright Petroleum. In March 1991, Ramesh had built his first Bright Petroleum Station, and by the end of the year, he had completed two additional petroleum stations. The total gross revenue in the year from all three stations was remarkable and was approx Rs. 2, 75, 000. In the next four years, his business picked up rapidly. After this, he desired to franchise in other cities. During the period of 3 years, he had sold a total of eleven franchises and achieved a substantial growth rate for total gross sales for his three Petroleum stations. It was also due to the fact that till the time, there was no competition. But soon after this, construction on the first two New Era Petroleum Stations was started in 1999 and both stations initiated operation in early 2000. The two stores were almost identical to the Bright Petroleum stations, but that was priced one rupee less than Bright Petroleum's current price, which was now Rs.19.95. Consequently the total gross sales for the three Bright Petroleum stations dropped and there were no increase even in the next year