This presentation is based on the case of Machhi chips. In this case the young entrepreneur robin came up with the idea of introducing new product into Indian market. The case describes the challenges faced by him and the mistakes in marketing the product.

1. Machhi Chips
Case Study Presentation

2. Content
• About the Case
• Characters i.e. the people involve in this case
• Multi-Stage Sampling Techniques
• Questions And Answers.

3. About The Case
• This case is about launching of a new
product known as Machhi chips. While
launching this new product how the
entrepreneur thinks and what kind of
marketing techniques has been used is
addressed in this case.

4. Characters
1. Robin :
• Young Entrepreneur of early thirties.
• Was from a reputed family with good ancestral property
(North Indian States)
• B.com graduate from University of Delhi
• Later started computer institute in his home city but due to
some reason he had to quit.
• Exporting of Groundnuts to Ukraine with the help of his
brother Pratyush.
• Incurs a loss of 6.5 million
• Started a new business by introducing new product i.e.
ready-to-eat (FMCG) product into the Indian market known
as Machhi Chips.

5. 2. Rajan :
• Elder brother of Robin
• Settled in Ukraine (Second largest country of Europe)
3.Pratyush :
• Brother of Robin and Rajan
• Engineer from leading University of Ukraine
• Owns business of distribution
• C&F (Carrying and Forwarding) agent for leading European
fast moving consumer goods (FMCG) company
[Products like snacks, ready to eat food]

6. 4. Chandrasekhar :
• Reputed consultant in reputed management institute
• Well versed in subjects like marketing, distribution and
marketing research.
• 15 years industrial experience in Indian FMCG market
• Acts as a consultant to various firms.
5. Vernika :
• Marketing manager in an established advertisement agency
which had good reputation in advertising and branding.

7. Products
• “Aloo Chips” – Fish Flavour for the
flavour chips.
• “Machhi Chips” - chips made of Fish.

8. The Report Stated
• Robin tried to find out some supportive information so that he
could take a decision about stating a new venture. He studied
one research document which is as follows:
• According to a study by McKinsey&Co, the Indian food market
will grow two fold by 2025 with the rapidly growing Indian
economy and improving lifestyles of Indians contributing in a
big way to this growth. Quoting the study by McKinsey&Co, a
report by the US Department of Agriculture stated "The market
size for the food consumption category in India is expected to
grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at
a compound annual growth rate of 4.1 per cent." The Indian
snacks market is worth around US$ 3 billion, with the organized
segment taking half the market share, and has an annual
growth rate of 15-20 per cent. The unorganized snacks market
is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per
year. There are approximately 1,000 types of snacks and
another 300 types of savouries being sold in the Indian market
today.

9. Continue…
• Potato chips and potato-based items are the most popular
products with more than 85 per cent share of the salty snack
market, the report said. In the organized potato chips market,
Pepsi and Haldiram's are some of the leading players.
• There is a big market for snacks in India as urban Indian
consumers eat ready-made snacks 10 times more than their rural
counterparts. Indians in the western regions eat the maximum
amount of snacks, followed by the people in northern region.
• "Consumers are willing to pay a premium for both value-added
private and branded products, creating immense opportunities
for manufacturers and retailers,' the report stated.”There is a
widespread recognition in India that consumers are likely to
replace light meals with snacks”

10. Multistage Sampling Techniques:
• Multistage sampling is a complex form of cluster sampling.
Cluster sampling is a type of sampling which involves dividing
the population into groups (or clusters). Then, one or more
clusters are chosen at random and everyone within the
chosen cluster is sampled.
Advantages :
• Cost and speed that the survey can be done in
• Convenience of finding the survey sample
• Normally more accurate than cluster sampling for the same
size sample
Disadvantages :
• Not as accurate as Simple Random Sample if the sample is
the same size
• More testing is difficult to do

11. Multistage Sampling Images

12. Details of Testing
• For 1 month testing was done.
• Full observation with proper care and
strictness was followed.
• Five States were the part of sampling:
1. West Bengal (showed a positive result)
2. Gujarat (low)
3. Madhya Pradesh, Punjab, Jharkhand (average
result)

13. Choice of distribution channel
• In India most snacks marketers were using the
channel of :
Marketer-distributor-retailer-consumer
• After test results Chandrasekhar had advice
robin to go for the commercialization of
Machhi chips.
• Robin’s distribution channel for Machhi chips:
C&F-distribution-convenience or kirana stores

14. After four months…
• Robin realized his business was not making
the sales he had expected and that he was
somehow failing.

15. Questions and Answers
1. Where did Robin make mistake ?
2. Is there any problem in the product ?
3. Is the research not appropriate or adequate ?
4. What is the cause of failure ?
5. Do you feel some other strategies may be used
to promote the product in the market ?
6. Do you feel there is a problem in the choice of
channel ?
7. If channel decision are important, who would
the appropriate channel partner be ?
8. What else would you like to add ?