Vishal Natural Food Product Private limited holistic marketing approach case study solution

1. Vishal Natural Food Product
Private Limited
Case Analysis
By
Abdul Qadeer

2. 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.

3. 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

4. Product Orientation VS Market Orientation
Product 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

6. 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.

7. 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

8. 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.

9. 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

10. Exporting business of VNFPP
Getting from
farmers
Sell to
intermediaries
TestingBottling
End consumer

11. 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

12. Products
• Gherkins
• Jalapenos
• Cherries
• Banana Paper
• Chillies
• Tomatoes
• Baby corn
• White onion
• Mix vegetables
• Lime and Lemon

13. Importing countries
• North America
• Spain
• Sri Lanka
• Italy
•
• Russia

14. 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

15. Alternatives
• Search market in India
• Preserved to Processor
• Leftover lemons
Selling in the open market and recover cost
Pickling/preserving them and look for the customer who would require it
Processing them and selling them in a different form altogether

16. CASE
ANALYSIS

17. 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

18. Porter Five Forces Model
Bargaining power of Buyer
High
Threat of New Entrance
High
Threat of Substitute
High
Bargaining power of Suppliers
Medium
Rivalry
Dabur India

19. Alternatives
Without Brand Name
Private labelling for
companies
Brand Name
Preserved to
Processor
Leftover
Lime/Lemon
Make and sell
To
Customer oriented
Change their
organizational structure
End consumer need
Search market in India

20. Challenges in transformation process
• 4 p’s
• Organizational structure
• Demand Forecast
• Customer Preferences
• Understand the Market Changes

22. 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

23. 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

24. Education
and
Communication
Facilitation
and
Support
Manipulation
and
Coopetition
Negation
Participation
and
Involvement
Coercion
Overcoming
Resistance to
change

25. Low
Production
Cost
High
Production
Cost
High Product
Quality
Low Product
Quality
VNFPP DABUR

26. Firms Infrastructure
Human Resource Department
Technological Advancement
Operations and Administration
Inbound Process Outbound
Marketing
/Sales
• 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
C
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Supportive
Process
Primary
Business
Process