1. Global Business consultancy
Report from the view point of Business Advisory
Formulate a product strategy for the chosen foreign market.
Case understanding
Ramalingam food is famous for its south Indian fresh cooked food
and filter coffee since 1960. But his son Mr. Vijay Ramalingan started
producing batter (Instant powder mixes) for various south Indian and
North Indian dishes like Dosa-Idli batter, Gulab Jamun, Laddu and
dhokla batter. But now Mr. Vijay want to do International expansion
as he found out that their products were sold in foreign countries
without their knowledge, thus the company appointed our firm Global
consultancy services for expansion into any one foreign region with
budget of Rs50 crores.
Solution Summary
Productinvention
Productmodification
Productadaption with STP(Segmentation, Targeting and Positioning)
2. Solution to problems.
Global Business Consultancy (GBC) was asked for advice regarding
international expansion by Indian Company Ramalingam Foods(Tagline:
Making Homemade Chefs Since 1965) which has a ready to cookproduct
portfolio, predominantly South Indian food mix including dosa-idli instant
mix powder, dhokla, Gulab jamoon mix and filter coffee.
GBC has decided the company to expand in Malaysia, Singapore and
Indonesia of South-East Asia where there is huge south Indian population.
The company would make Greenfield expansion in Malaysia followed by
export to Singapore (by road) and Indonesia (by waterways) from there.
GBC has advised Ramalingam Foods to launch with current products at
these three countries in this year with planned productportfolio
enhancement over next two years. Ramalingam Foods will focus on R&D
for productinnovation (both authentic Indian and Indian themed foreign
dish), marketing for extending reach cum brand building, world-class IT
infrastructure for coping up with digital disruption, employee friendly
productive HR policy.
1) Product Invention- Ramalingam foods was famous for south Indian food
and filter coffee since 1965. But due to some political interference they
shifted themselves to making and providing instant food mixes known as
batter or powder mixes food. They used to serve various north Indian and
south Indian instant mixes and chutney powder, Desert mixes, they
continued to serve this for many long years. But now they are thinking of
expansion into foreign nations into Asian countries and have appointed our
consultancy services know as Global consultancy services (GBC) for
expansion. Thus the company wants to expand in Malaysia, Singapore and
Indonesia, but the category served by Ramalingan foods in India was limited
to the country’s boundary, for expansion they need to extend their product
line, the main agenda of Ramalingan food was to deliver Indian authentic
3. taste in its product. Thus our consultancy services after a brief market
research has extended the productline category with new inventions of
categories which includes local food of the foreign countries with mix of
Indian fusion in it. The new invented categories will serve the Indian mix
with Malay, Thai and Indonesian food;also the company will also introduce
its non-veg category, various combos and starters at different time intervals.
But during first year the company will go with the same productcategories
they had in India as launching new categories at initial stage is risky
Categories
1) North Indian Mixes
2) South Indian Mixes
3) Starter mixes (Indian)
4) Indian Thai fusion mixes
5) Indian Malay fusion mixes
6) Chinese mixes
7) Desert mixes
8) Instant Tea and coffee mixes
9)Chutney powder mixes
10)Sauces mixes
11)Indian Indonesian Fusion mixes
12)Kids starter Packs mixes
13)Kids combo packs (Malay,Thai,Chinese,Indian)
14)Only veg combo mixes (Indian, Malay, Thai)
15)Only non veg combo mixes(Indian,Malay,Thai)
16)Small packet of instant mixes(Sachet) (Veg-Nonveg)
4. 2) Product Modification
As the Ready to cookfood segment is still in its nascent stage, there is a
scopeto penetrate into other potential countries with both its current product
range and through customized products.
The company is targeting its expansion to three Asian countries on a single
go that is Malaysia, Singapore and Indonesia. With the budget of Rs50
crores, the company is aiming to construct a manufacturing unit in Malaysia.
In the coming months, the company expects to start selling various other
instant mixes in the market with extended productline category. Being the
“first mover” in the market of Malaysia and Indonesia the company has
already created an entry barrier by taking patents for its batter and
packaging, and its manufacturing techniques. The company has also
experimented with other products suchas Malay dishes, Thai dishes and
Indonesian dishes with giving them an Indian touch. The company has
mixed Indian fusion in each category so the company can deliver the Indian
taste in the foreign nations. The company has planned to introduce various
instant mixes in coming years. Starting from the company’s regular menu it
will start adding categories to its menu after expansion at time intervals. The
company has also brought up various Veg and Non veg combos. The
company has also introduced Non veg categories for future expansion by
giving them an Indian touch, morever the company will also expand itself
with Kids starter and combo packs, also introducing sauces and starters
instant mix in coming future. Thus the company has aimed of growing big in
near future. The products will be available in the market in short time after
expansion. All the three countries will have a different timeline of product
line expansion owing to consumer’s preference and acceptance of company
in the country. Presently, the brand has morphed into a multi-product brand
with a range of products. The company continues and aims to deliver
Authentic Indian touch to its categories.
Continuing to maintain global standards of food safety would be a big
challenge due to diversifying its productmix and entering new geographies.
Besides, creating awareness in these new geographies, infrastructure. Owing
to fast changing lifestyles in countries. The company will try to serve its
productcategory range with sheer maintained quality and taste.
Productline extension is the main goal of the company owing to that
company has expanded its productline according to the selected foreign
regions. The company has entered new products category after doing a
market Resarchfor the selected foreign nations.
5. Morever the company is coming up with various different sachet (Small
packets) for initial survey of the productand will run the small packets
forever. The company will expand its categories into countries at different
time intervals in coming five years.
Three Year ProjectionPlan
(2019-2022)
Pricing
Sr.N
o
Category Dishes Quantity Price
(INR)
Price
(Malaysia
n
Ringgit)
Price(Singa
pore
Dollar)
Price(Indon
esian
Rupiah)
1 Instant south Indian
mixes
Only
Veg
200gms
500 gms
1000gms
110
210
410
6
12
23
2
4
8
20425
42892
83742
2 Instant north Indian
mixes
Only
Veg
200gms
500gms
1000gms
110
210
410
6
12
23
2
4
8
20425
42892
83742
3 Indian Malay fusion
mixes
Veg and
Non veg
200gms
500gms
1000gms
110
220
420
6
13
24
2
4
8
22467
44935
85785
4 Indian Indonesian
fusion mixes
Veg and
Non veg
200gms
500gms
1000gms
110
220
420
6
13
24
2
4
8
22467
44935
85785
5 Indian Thai fusion
Mixes
Veg and
Non Veg
200gms
500gms
1000gms
110
220
420
6
13
24
2
4
8
22467
44935
85785
6 Starter Mixes
(Indian)
Veg and
Non Veg
200gms
500gms
1000gms
100
210
410
6
12
22
2
4
8
20425
42892
83742
7 Chinese mixes Veg and
Non veg
200gms
500gms
1000gms
100
210
410
6
12
23
2
4
8
20425
42892
83742
8 Kids Starter packs
mixes(Indian)
Veg and
Non veg
200gms
500gms
100
210
6
12
2
4
20425
42892
7. Batter made Dishes
Categories Dishes
1) Instant south Indian
mixes
Medu vada, Masala Dosa, Idli,
Appam, Paniyaram, Uttapam…..
2) Instant North Indian
mixes
Chole bature, Tandoori roti, Paneer
Masala, Biryani, Dahi Balla, Sarsoon
da saag, Dal batti…
3) Indian Malay fusion
mixes
Maggi poring, Banana leaf rice,
Kurma, Rajma (kidney bean spices),
Raita, and Biryani (Malay spices)….
4) Indian Thai fusion mixes Crispy baby corn, Asian style pasta
salad, Broccoli balls, Pineapple
rice…..
5) Indian Indonesian fusion
mixes
Nasi Biryani, Lawar (Indian vegetable
dish), Indian curry, Appam (south
spices)…
6) Starter Mixes(Indian) Manchurian, Crispy veg, Shahi paneer,
Wontons, Chicken soup…
7) Chinese Mixes Fried rice, Manchurian, Chow mien,
Spring rolls, Chicken chili…
8) Kids Starter Packs
mixes(Indian)
Chicken soup, fried rice, Baby corn,
deserts..
9) Kids Combo packs
mixes
(Indian,Thai,Malay)
Idli, Biryani, Maggi poring, pasta,
Nasi Biryani, butter chicken,
Deserts…
10) Combo Packs-
Veg(Indian,Malay,Thai)
Sweet corn soup, Masala Dosa,
Appam, Nasi Biryani, Manchurian,
Thai curry……
11) Combo Packs-Non
veg(Indian,Malay,Thai)
Chicken soup, Butter chicken, Chicken
fried rice, Fish curry, Deserts…
12)Instant coffee, tea and other
Beverages mixes
Coffee and Tea (Milk), Black coffee,
Coconut water, Soya bean milk, Hot
milk, Coconut milkshake, Caramel
milkshakes, Thick shakes ….
13) Chutney Powder -
8. 14) Desert mixes Mouse cake, Halwa, Jalebi, Shrikhand,
Brownie fudge, Rabdi, Kheer,
Waffles…..
15) Sauces mixes Peanut sauce, sallot chili sauce, sweet
soy sauce, sweet chili sauce
3) STP (Segmentation, Targeting, Positioning) and Product Adaption
STP (Segmentation, Targeting, Positioning)
1) Segmentation- Consumers behaviours are increasingly complex. A
consumer segmentation model for the food industry must be
multidimensional. The decisions consumers make about food are influenced
by more factors than ever before, which means a consumer segmentation
model that uses single variable such as age, need or gender is out of date
Therefore we will consider a modern approachtowards segmentation:
Mindset
Location
Consumption occasion
Mindset – Consumer’s Mindset towards the food industry is changing
rapidly as the trends are changing rapidly. So while expanding into given
three countries (Malaysia, Singapore, Thailand) our company did a research
about the mindset of the consumer towards batter Food and company found
out that these three Asian countries has highest number of Acceptancerate
for varities of food. And these countries adapt the new varities fastly. Thus
according to survey consumers in Malaysia are 80% early adaptors followed
by 70% in Singapore and 65%in Indonesia.
9. Acceptance Rate in %
Location– Our Company is delivering authentic Indian taste since 1965.
Company believes to deliver the same taste and quality after expansion to
(Malaysia, Singapore and Thailand), In the given Asian countries there is
highest number of Indian population residing there , thus the main reason for
expansion is serving those Indian with authentic Indian food taste. Morever
the other main agenda for expansion is that many Indian dishes are famous
over these Asian country thus the company will serve authentic Indian touch
with Indian fusion mix taste in the products. During survey it was noted that
the local people over there are foodies and they want something new to eat.
Out of total population In Malaysia 45% of people crave for good and new
food followed by 38% in Singapore and 32% in Indonesia.
10. Consumption Occasion– According to our Survey we found that people in
these three countries (Malaysia, Singapore and Indonesia) are primary
drivers for food;they consume snacks and food throughout the day. Thus we
extended our productline category according to their habits, morever we are
a batter ready to make Food Companythus consumption of this powders are
easy for consumer to eat and cook. Our survey shows the timeline of their
eating habits.
Here are the primary drivers of food decisions throughout the day:
Morning: Mornings are typically driven by the need for more healthy,
functional choices.
Afternoon: As the day progresses, consumers need a tasty refuel to keep
them going.
Evening: Once evening arrives, consumers look for more pleasurable and
relaxing solutions to unwind.
11. 2) Targeting – Ramalingan foods is been serving authentic Indian taste since
1965 but after expansion into three foreign countries (Malaysia, Singapore,
Indonesia) the company has extended its productline to target its customer.
Authentic Indian taste is main agenda of the company, as there are many
Indians residing in these three countries. Morever acceptance and adaption
rate of new food category is also adapted easily by them. Thus the company
has targeted various ranges of customer and extended the category of
products.
TargetMarket
Students
Millennial
Generation X and Y
Local food advocates
Tourists
Working Professionals
Early adaptors and food cravers.
12. 3) Positioning – Ramalingan foods is making and offering instant powder
mixes for various south and north Indian dishes in India. But after
international expansion into three foreign Countries (Malaysia, Singapore
and Indonesia) The Company has extended its productline category and are
now providing various Malay, Thai and Indonesian dishes with Indian fuysn
mix. The brand has positioned itself strongly in the Indian market and is now
planning to grow bigger into foreign countries by strong positioning
Points and USP.
Strong Positioning Strategies
Extended the productline category
Local market extension
Local dishes category
Reaching more target customers
5 intervals for market entry with many new categories each
year
Providing a customized touch to each productto give the exact
taste of the homemade items
Productis naturally fermented.
Introducing Sachet (Small instant mixes packet) for the first
time in the market of batter food for testing and will run
throughout forever
USP of our products.
Preservative free without artificial Flavors and Chemicals
Dishing out 4-5 recipes from the same batter
RO water used
Indian fusion mix in every category of products
Organic, natural and home cooked food mix
ISO and FSSAI certified
Authentic Indian Taste
Fusion of Indian taste with foreign cusine
Less time consuming
13. 3) Product Adaption
The company is serving the instant mixes in India from many years. Now
expansion into foreign countries (Malaysia, Singapore, and Indonesia)
will be completely different atmosphere, because the food markets in
each country differ, the adaption of the company and the products
depends on the market entry of the product.
Morever the company has extended its productline with various different
categories for all the three countries. Company will extend its product
line at time intervals in different country. But the main thing to keep in
mind is the adaption of the products in each country. Thus the company
has come up with a market entry and productline extension strategy for
each country in a disciplined manner so that the preferences of
consumers toward the productcan be known.
Productadaption in each of the three country (Malaysia, Singapore,
Indonesia) will be different depending upon the Population, Geography,
Preferences, Taste thus after conducting a brief market research the
company has come up with as given below strategy for each of the three
countries.
14. Product line Expansion and Market Entry strategy (Malaysia, Singapore,
Indonesia)
Market
Entry
Products Time
Period
Singapore Malaysia Indonesia
Initial
Period
Small instant mix testing packets
(Sachet 50gms packet) (Veg-Non veg) 6
months
First
Interval
Instant south Indian Mixes
Instant North Indian Mixes
Instant Coffee and Tea mixes and other
Beverages mixes
Chutney Powder
Desert Mixes
Small instant mixes packets
2019-20
Second
Interval
Small instant mixes testing packets for (
Indian fusion with Malay, Thai and
Indonesian dishes) (Veg-Non Veg)
Starter Mixes (Indian) (Veg-Non veg)
Chinese Mixes
Kids starter Mixes(Indian)
Kids combo pack Mixes
(Both Veg-Nonveg)
2020-21
Third
Interval
Indian Malay Fusion mixes
Indian Thai fusion Mixes
Indian Indonesian Fusion mixes
(Both Veg- Non veg)
Sauces Mixes
Combo Packs Veg(Indian, Malay, Thai)
Combo Packs Nonveg
(Indian, Malay, Thai)
2021-22
15. Conclusion and Management principles used
Expansion should not be seen as a profit but as a source of providing value
and Authentic Indian taste to its customer with preserved quality. Owing to
expansion our firm Global Consultancy Services would Suggest
Ramalingam foods to expand in three Asian countries (Malaysia, Singapore
and Indonesia) with extension in its product line. If the company looks well
to all the solution given by our firm than there will be success and sales will
also increase and the company will grow bigger. Now Ramalingam foods
should look into better co-relation of the departments with high efficiency to
achieve its goal successfully.
Management Principles Used
Division of work -According to departments
Authority and responsibility- Assigned to top level
and managers
The degree of centralization- To maintain hierarchy
Order- by providing the employees with the right
guidance and proper information
Esprit de corps – To develop proper communication
channel between the departments that helps in
maintaining excellence relationship with the
customers