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Vishal Natural Food Product Private LimitedCase Analysis By Abdul Qadeer
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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.
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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
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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
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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.
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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
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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.
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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
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Exporting business of VNFPPGetting from
farmers
Sell to intermediaries
TestingBottling
End consumer
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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
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Products
• Gherkins• Jalapenos• Cherries• Banana Paper• Chillies• Tomatoes• Baby corn• White onion• Mix vegetables• Lime and Lemon
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Importing countries• North America
• Spain
• Sri Lanka
• Italy• • Russia
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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
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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
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CASE ANALYSIS
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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
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Porter Five Forces ModelBargaining power of BuyerHigh
Threat of New EntranceHigh
Threat of SubstituteHigh
RivalryDabur India
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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
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Challenges in transformation process • 4 p’s• Organizational structure• Demand Forecast• Customer Preferences• Understand the Market Changes
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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
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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
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Education and
Communication
Facilitation and
Support
Manipulation and
Coopetition
Negation
Participation and Involvement
Coercion
Overcoming Resistance to
change
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Low Production Cost
High Production Cost
High Product Quality
Low Product Quality
VNFPP DABUR
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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
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