Download - AHA Effect
AIMING FOR THE 'AHA EFFECT'
CASE STUDY
…CASE ABOUTAkbar Iqbal’s terms for joining as country headof Tomaiki Foods:• Look at India as an opportunity to grow a
category• Look at the bottom of the pyramid• Not transfer products from its existing portfolio
Create an ‘AHA effect’
5-FORCES MODEL• Rivalry :
Large Indian companies (growing from SMEs)MNCs Indianised
• New entrantsNew MNCsSMEs
• SubstitutesUnorganized sector
• BuyersHuge market at the ‘Bottom of the pyramid’Growing rural marketSmaller towns
• suppliers
SYMPTOMS, PROBLEMS, ISSUES?• Symptoms:– Success stories abound:• Sauces market growth post Nestle’s entry• Rasna • Haldiram • Papads – Lijjat• Potato chips – Uncle Chipps• Masalas – MDH, Everest• Pastes• Pickles – Nirlon, Badekar, Priya
PROBLEMS?• MNCs & large Indian companies not looking at the
prospects• Risk averse• Merely looking at adapting existing products• Not taking the effort to understand the consumer• Inadequate Marketing Research techniques to
understand the consumer• Consumer resistance to change to learn how to
adopt new kitchen appliances• No serious attempts to develop appropriate
technologies
ISSUES?
• Offer Indian consumers something to create an ‘AHA effect’
• ‘Made for India’ strategy
OT SWOT
•LAGS NOS. (B.O.P.)•FEW BRANDS•LOW PENETRATION OF EXISTING ONES
•LOW PURCHASING POWER•TIME NO CONSTRAINT•COMPETITION•SMEs•LACK OF INFRASTRUCTURE
TOWS SW
OT
• GLOBAL BRANDS•HUGE RESOURCES•PROFESSIONALISM
•MINDSET OF MNCs•INAPPROPRIATE MR•‘THINK SMALL
•LAGS NOS. (B.O.P.)•FEW BRANDS•LOW PENETRATION OF EXISTING ONES
•LOW PURCHASING POWER•TIME NO CONSTRAINT•COMPETITION•SMEs•LACK OF INFRASTRUCTURE
SO SW
OT
•GLOBAL BRANDS•HUGE RESOURCES•PROFESSIONALISM
•MINDSET OF MNCs•INAPPROPRIATE MR•‘THINK SMALL”
•LAGS NOS. (B.O.P.)•FEW BRANDS•LOW PENETRATION OF EXISTING ONES
•NPD•Educate consumers•Discover unmet need
•LOW PURCHASING POWER•TIME NO CONSTRAINT•COMPETITION•SMEs•LACK OF INFRASTRUCTURE
OW SW
OT
•GLOBAL BRANDS•HUGE RESOURCES•PROFESSIONALISM
•MINDSET OF MNCs•INAPPROPRIATE MR•‘THINK SMALL”
•LAGS NOS. (B.O.P.)•FEW BRANDS•LOW PENETRATION OF EXISTING ONES
•NPD•Educate consumers•Discover unmet need
•MR TECHNIQUES•ENTREPRENEURIAL APPROACH•MNC MINDSET
•LOW PURCHASING POWER•TIME NO CONSTRAINT•COMPETITION•SMEs•LACK OF INFRASTRUCTURE
ST SW
OT
•GLOBAL BRANDS•HUGE RESOURCES•PROFESSIONALISM
•MINDSET OF MNCs•INAPPROPRIATE MR•‘THINK SMALL”
•LAGS NOS. (B.O.P.)•FEW BRANDS•LOW PENETRATION OF EXISTING ONES
•NPD•Educate consumers•Discover unmet need
•MR TECHNIQUES•ENTREPRENEURIAL APPROACH•MNC MINDSET
•LOW PURCHASING POWER•TIME NO CONSTRAINT•COMPETITION•SMEs•LACK OF INFRASTRUCTURE
•OFFER VALUE•PPP•USE UNCONVENTIONAL MEDIA
WT SW
OT
•GLOBAL BRANDS•HUGE RESOURCES•PROFESSIONALISM
•MINDSET OF MNCs•INAPPROPRIATE MR•‘THINK SMALL”
•LAGS NOS. (B.O.P.)•FEW BRANDS•LOW PENETRATION OF EXISTING ONES
•NPD•Educate consumers•Discover unmet need
•MR TECHNIQUES•ENTREPRENEURIAL APPROACH•MNC MINDSET
•LOW PURCHASING POWER•TIME NO CONSTRAINT•COMPETITION•SMEs•LACK OF INFRASTRUCTURE
•OFFER VALUE•PPP•USE UNCONVENTIONAL MEDIA
•START FROM RURAL•EDUCATE
TOMAIKI’S STRENGTH
• Global brands• Resources:– Capital – R&D
• Professional competence:– Experience in other markets– NPD competence
IMPLICATIONS
• Risk taking ability• Backed by:– Resources– Knowledge– Innovative skills– Experience across markets
SO
• Capitalize on the huge potential at the ‘Bottom of the Pyramid’ thru’ NPD
• Educate consumers to use existing cooking devices & products
THUS… Markets
Opportunities
Small towns Rural
•Extending usage of cooking products/devices
•Demo & education to encourage-Usage of modern cooking appliances-Adapting recipes--ingredients for cooking
•Demo & education to adapt existing products/services
•New product development •New recipes•Developing RTCs•Ingredients for cooking
•Innovations: - appropriate technology - products
RESEARCH ON FOOD HABITS
• 1971 & 1981 Mrs. Goodyear, BMRB research• 1984 MBA-Gallop research on processed
foods
FINDINGS: GALLOP
Mothers pestered by their children seeking:1. Taste2. Variety 3. Convenience 4. Creativity
SUCCESS STORIES
• Maggi noodles, Fryums…• MDH, Everest masalas, pastes
• Not ready to eat foods, which even today has very little acceptance
1990s TO DATE SUCCESSES
• Haldiram’s namkeens• Kurkure• Bingo
RISE OF SMALL TOWNS IN INDIA2008 of Ernst & is report• Significant consumptions expenditure of KUT*
vis-à-vis the metros• Increasing affluence levels with a larger relevant
consumer base• Increasing reach of retail & malls• Increasing reach of media & favourable media
consumption patterns*key urban towns
TOMAIKI’S SCAs
• Pre-emptive move• Differentiation • Building brand ‘Resonance’
TOMAIKI INDIA STRATEGY IMPLEMENTATION
• CEO • Organization • Staffing • Evaluation & control
TOMAIKI INDIA CEO CHARACTERISTICS
• Characteristics will be the that of a diversification manager
• CEO should also have the characteristics of going to Stage II, which is managing functional along with entrepreneurial organization
ORGANIZATION
• New people will have to be recruited• Structure will initially be entrepreneurial• But we will have to plan for a quick transition
to Stage II organization structure, moment the first product gets launched
STAFFING
• Initially we need a strong conceptual task force
• When product is identified & company is in a position to launch, we need to go in for a functional structure, hence manpower has to suit the requirement of:– Functional organization– Skunk works for NPD
EVALUATION & CONTROL
• Evaluation systems have to put in place to evaluate performance of new products