vishal natural food product private limited

Vishal Natural Food Product Private LimitedCase Analysis By Abdul Qadeer

Holistic Marketing

• Internal Marketing Co-ordination among various functions and activities within the

organization No conflict between departments

• Relationship Marketing Making Relationship with Employees, Suppliers, Customers,

Financial Institute and others which affects firm’s success Relationship marketing suggests not only building relationships

but also enhancing them over the time.

Holistic Marketing

• Integrated Marketing Marketing activities should be the same through out the channels

• Societal Marketing Societal marketing suggests that marketing should consider

ethics, society, laws and the environment while designing activities

Economical profitable product is not just object of holistic marketing but product mush be societal benefit

Product Orientation VS Market OrientationProduct Orientation• Ignore the customer need• Focus only on quality of production• We can sell any product if the

quality is good enough.• We can make a profit if we sell

enough of our products.• Our customers will buy all that we

can produce if our price is fair.

Market Orientation• Customer Orientation

Customer needs and wants Focus on market changes

• Competitor Orientation Observe competitor strategies

• Inter-functional Coordination Analysis internal resources

Journey towards VNFPP• 1985-1993 Madhu worked in his family business that was ‘Desktop

Publishing’• Sensing the demand of Computerized Embroidery machine.

• Hinduja Group ready to contract • Investment of about IRS2 million• Meet with friend for investment, friend suggest Vishal stop investing in this

business because of instability.• Entered into the food business • With advice of his friend Vishal entered into the exporting business and became• Export oriented company based in Bangalore IT capital of India 1998• It also known as chilli company because of supply of various chillies.

Vishal Passion• Agriculture and export• Attended several program• Entrepreneurship and small business• Supply chain management by IIM

• Attended several food fairs• Bangkok• Thailand • Moscow• Russian

• To access marketing requirements to export their products

Industry of Gherkins and Cucumber• Business category in export • Fresh 7%• Prepared/preserved 58%• Provisionally Preserved 35% (remain dominant from 1993 to 2002)

• Processed products business increased rapidly.

VNFPP• Business-to-business• Supplied pickled and preserved product• Used intermediaries to sell their product

• Safety requirement• HACCP system according to the international norms• Certificate from SGS Group and Kosher (both internationally recognized)• Madhu’s team ensured the product quality and safety through process

Exporting business of VNFPPGetting from

farmers

Sell to intermediaries

TestingBottling

End consumer

About VNFPP• Vision: Customer Enrichment through Ethical Business practices.

• Slogan: Nature at its best

• USP: Timely ordered with desired quality

• Quality: Sent to the restaurant of his friend to get feedback about product

Products

• Gherkins• Jalapenos• Cherries• Banana Paper• Chillies• Tomatoes• Baby corn• White onion• Mix vegetables• Lime and Lemon

Importing countries• North America

• Spain

• Sri Lanka

• Italy• • Russia

Changing Environment (Issues)• Competition increased in Vietnam, Thailand and Romania in gherkin • Price war started• VNFPP’s customers asked for price reduction• Saturated market with only 1% growth per annum

• Export business seemed less attractive• VNFPP thinks for alternative

• Order large quantity of lime and lemon for low price, it must find suitable use for leftover material

Alternatives• Search market in India• Preserved to Processor• Leftover lemons

Selling in the open market and recover costPickling/preserving them and look for the customer who would require itProcessing them and selling them in a different form altogether

CASE ANALYSIS

Strength• Bottling and Canning Factory• Expert opinion of his friend• Passion towards food

products• Suppliers relationship

Weakness• New in market• R&D• Customer data base

Opportunity• Penetrate into Indian market• Introduce more flavours

Threat

• Dabur Reduce the price• Change in customer preference

Porter Five Forces ModelBargaining power of BuyerHigh

Threat of New EntranceHigh

Threat of SubstituteHigh

RivalryDabur India

Alternatives Without Brand NamePrivate labelling for companies

Brand Name

Preserved to ProcessorLeftover

Lime/Lemon

Make and sellTo

Customer oriented

Change their organizational structure

End consumer need

Search market in India

Challenges in transformation process • 4 p’s• Organizational structure• Demand Forecast• Customer Preferences• Understand the Market Changes

Product• Canning• Bottling• Other form of processed products

Price •Best match with customer expectation•Competitive prices

Place •Restaurant•Own store•Retailer

Promotion• Billboards• Broachers• Direct selling

MD

Product Manager

GM Operations/Admini

stration

GM Finance

Account Officer

R&D

Manager Marketing Export

Manager Marketing Local

GM HRGM Marketing/Sales

Marketing and sales

Quality

Procurement

Operations

Education and

Communication

Facilitation and

Support

Manipulation and

Coopetition

Negation

Participation and Involvement

Coercion

Overcoming Resistance to

change

Low Production Cost

High Production Cost

High Product Quality

Low Product Quality

VNFPP DABUR

Firms Infrastructure

Human Resource Department

Technological Advancement

Operations and Administration

Inboun

d

Proces

s

Outbound

Marketing/Sale

s• Getting product

from own farm• Alliances with

other farm owners 1000 farmers across Karnataka, Tamil Nadu and Andhra Pradesh

• Quality focused• Hygienic product• Finished product

• Warehousing• Distribution

Distributors Wholesaler Retailer

• Advertisement• Promotion

Competitive

Advantag

e

Supp

ortiv

e Pr

oces

s

Primary Business Process