This document discusses the marketing strategies of TBEL, a food service business company in India that manufactures and markets Ready to Serve (RTS) food products. [1] It began operations in 1986 and launched its first RTS products in 1990, but failed to gain traction in international markets due to a lack of focused marketing. [2] It partnered with Pepsi in 1992 and PBI in 1995 to distribute its products in the US, but partnerships fell through. [3] HLL acquired TBEL in 1997 when it was declared a sick unit, and implemented a new 4CS marketing strategy focused on the US market that improved sales and profits.
1. MARKETING MANAGEMENT
Target Marketing in the USA
SUBMITTED TO
PROF. YASMIN SINGAPOREWALA
2. Group Members:
Name Roll No.
Anuja Bambulkar 63
Ruchi Jain 76
Wasim Shaikh 109
Rahul Das 69
Maneesha S. Patel 96
Prasad Shukla 82
3. INTRODUCTION:
A food service business company.
Manufacturing, & marketing, Ready to Serve (RTS) food
products,
Processing vegetables and
Leasing cold storage facilities
FOUNDER:
Formed in 1986 by Ravi Ghai and Ravi Kiran Aggarwal.
PRODUCTION COMMENCEMENT:
Started in 1989 & launched its first RTS products in 1990. But
Its products failed in Middle East, Russia and the US. due to
lack of focus marketing approach.
4. 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.
5. ACQUISITION BY HLL:
By March 1997, TBEL was declared a sick unit & was
referred to BIFR
Mr. Vasudevan thought to get TBEL deregistered from
BIFR by providing financial assistance.
As a result TBEL’s net worth increased & the company was
deregistered from BIFR.
In 1997, PBI took over TBEL & Appointed Mr. Nigam of
Britannia (as a president).
By March 1997, TBEL was declared a sick unit & was
referred to BIFR
Mr. Vasudevan thought to get TBEL deregistered from
BIFR by providing financial assistance.
As a result TBEL’s net worth increased & the company was
deregistered from BIFR.
6. 4 CS STRATEGY:
i)Concentration ii) Conversion iii) Collaboration iv) Cultivation
It was planned to expand its business globally as well as in India.
TARGETING :
i)Geographic: It planned to enter the highly competitive US
Market through RTS food products.
ii)Demographic: It found that its potentional customers’s age
group was between 25-54.
iii) Psychographic: It changed the product according to the
local customer’s preferences.
7. MARKETING STRATEGIES:
i) Wider range of products
ii) Lowering advertising costs
iii) Focused on American’s understanding of Indian food.
iv) Slashed Product portfolio from 25 to 8 which were
familiar to American consumers
v) Products were renamed. Eg. Alu Chole to Bombay Potatoes
vi) Modification in packaging to suit customers requirements.
Pack size changed to 285 gms which motivate customers
to give a products a try
vii) A store shelf accommodated 9packs as compared to 7
earlier.
8. EFFECTS OF MARKETING & TARGETING STRATEGIES:
i) Net Profit of 4.7 million
ii) Product demand increased
iii) Profit increased from three fold to Rs. 13.42 million
after a period.
ACHIEVEMENTS:
TBEL became the largest brand in RTS.
It gained the popularity.
Growth leaded to Market Expansion.