MARKETING MANAGEMENT Target Marketing in the USA SUBMITTED TOPROF. YASMIN SINGAPOREWALA
Group Members:Name Roll No.Anuja Bambulkar 63Ruchi Jain 76Wasim Shaikh 109Rahul Das 69Maneesha S. Patel 96Prasad Shukla 82
INTRODUCTION: A food service business company. Manufacturing, & marketing, Ready to Serve (RTS) food products, Processing vegetables and Leasing cold storage facilitiesFOUNDER:Formed in 1986 by Ravi Ghai and Ravi Kiran Aggarwal.PRODUCTION COMMENCEMENT:Started in 1989 & launched its first RTS products in 1990. ButIts products failed in Middle East, Russia and the US. due tolack of focus marketing approach.
COLLABORATION WITH PEPSI IN 1992. o Intention behind the collaboration was the govt. regulations to generate one dollar in export sales for every dollar it earned in India. o Pepsi agreed to distribute TBEL’s RTS products abroad and help TBEL upgrade its facilities o But in 1994 when the govt. abolished the export norms for MNCs, Pepsi walked out of TBEL. TIE UP WITH PBI In 1995, Preferred Brands International (PBI) launched five TBEL products in South California, & later expanded its business to other parts of Country.PROBLEM FACED: a) Excessive Borrowings b) Poor response to its products c) Poor capacity utilization d) Loss reached to Rs. 96 million.
ACQUISITION BY HLL: By March 1997, TBEL was declared a sick unit & wasreferred to BIFR Mr. Vasudevan thought to get TBEL deregistered fromBIFR by providing financial assistance. As a result TBEL’s net worth increased & the company wasderegistered from BIFR. In 1997, PBI took over TBEL & Appointed Mr. Nigam ofBritannia (as a president). By March 1997, TBEL was declared a sick unit & wasreferred to BIFR Mr. Vasudevan thought to get TBEL deregistered fromBIFR by providing financial assistance. As a result TBEL’s net worth increased & the company wasderegistered from BIFR.
4 CS STRATEGY:i)Concentration ii) Conversion iii) Collaboration iv) CultivationIt was planned to expand its business globally as well as in India.TARGETING :i)Geographic: It planned to enter the highly competitive USMarket through RTS food products.ii)Demographic: It found that its potentional customers’s agegroup was between 25-54.iii) Psychographic: It changed the product according to thelocal customer’s preferences.
MARKETING STRATEGIES:i) Wider range of productsii) Lowering advertising costsiii) Focused on American’s understanding of Indian food.iv) Slashed Product portfolio from 25 to 8 which werefamiliar to American consumersv) Products were renamed. Eg. Alu Chole to Bombay Potatoesvi) Modification in packaging to suit customers requirements. Pack size changed to 285 gms which motivate customersto give a products a tryvii) A store shelf accommodated 9packs as compared to 7earlier.
EFFECTS OF MARKETING & TARGETING STRATEGIES:i) Net Profit of 4.7 millionii) Product demand increasediii) Profit increased from three fold to Rs. 13.42 millionafter a period.ACHIEVEMENTS:TBEL became the largest brand in RTS.It gained the popularity.Growth leaded to Market Expansion.