Kaggi’s Food Co (KFC) is a large producer & seller of edible oils, flour, pulses, spices & some other food items
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Marketing Management
Case Studies
Case (20 Marks)
Kaggi’s Food Co (KFC) is a large
producer & seller of edible oils, flour, pulses, spices & some other
food items. Over past ten years KFC could establish itself well with popular
brand names for its produce. Oil brand “Sunrise” from KFC is very popular as
low fat, healthy cooking medium. KFC has three mills, one each in Meerut,
Dehradun & Lucknow. To avail tax benefit only spices are procured from
small manufacturers who carry out their operations under strict supervision of
KFC quality team. All other items are manufactured in company’s own mills. SO
far entire produce of KFC is sold easily in northern region of seven states
through loyal set of distributors & retailers. For past three years KFC has
started feeling the pressure of competition, more in oil & flour brands. Apart
from bundling free soap, detergent, pet jar etc., competitors have increased
distributor & retailer margins on volume off take. The young and
professional management team of KFC is confident of achieving targets and
enjoying the scene. KFC mills are not very modern ; nevertheless, they are
maintained well. Breakdowns and production stoppages are very rare. KFC has
recently bought a large salt manufacturing facility in a coastal town. This
mill produces good quality common salt on contract basis for two different brands.
The previous owner found this arrangement very neat with assured and quick turn
over-even though the profit margin is low. KFC did not wish to change the
arrangement immediately, but thought building own brand for salt will not be
difficult. It will increase profit margin also. Added attraction is that
branded salt can easily be sold through existing channel. Market for branded
salt is already over crowed. There are many national and local brands. The
leading brand TATA is there for over 30years. There are other big national
brands with deep pockets for promotion such as Nirma, T-series, Dandi, Catch
etc. Each brand is trying to take a particular but different position. While
common planks are crystal clear, white & free flow, the special positions
are iodized, triple refined, from the house of TATA etc. Prices & packing
are almost same. Only Dandi & Catch are costlier. Catch sells in
dispensable container of 400 gms also
Answer
the following question.
Q1.
What core product is Kaggi’s Food selling when it sells edible oils?
Q2.
Carry out a SWOT analysis for Kaggi’s Food.
Q3.
Suggest some differentiators to build up competitive advantages for KFC’s brand
of salt
Q4.
What will you suggest to ensure trial & feedback from customers of salt
during launch?
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