NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURES 56, 57, 58, 59 and 60

Course Modules 15A, 15 and 15B

Marketing Strategy, Start-up Case Studies

and
In Closing

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
 NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURE 56
Course Module 15A

Marketing Strategy

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
Marketing Strategy
Marketing Strategy or Marketing Management comprises a set of activities connecting the firm and the
customer for mutual value creation. Some key functions of marketing management are as follows:

Researching, identifying, and meeting human and social needs

Identifying and defining products and services that meet such needs

determining the price at which the products and services will be accepted by the
customers

positioning, promoting, distributing, selling and delivering the developed products

and services in the marketplace

providing after-sales service to the customers.

Marketing Management is far more than just selling products and services; nor is it one of creating perceptions
about products and services. It serves customers, society and the firm based on aligned value propositions.
Marketed Entities
Marketing can cover a wide range of things that can be seen, felt and experienced by consumers.

Most common applications of marketing

Products Services

Other common applications of marketing

Events Experiences People Places

Virtually anything can be marketed

Properties Organisations Information Ideas

In many cases, certain of the marketable entities can, by themselves, be marketing tools or aids, rather than
marketed products or entities. For example, events can help a firm market its products while customer
experiences of owning or using a product or service can result in marketing of the product or service.
 Diversity and Hierarchies of Needs
The needs that marketing caters to are equally diverse and dynamic. Markets can be shaped by firms but could
also overwhelm or underwhelm the firms if markets and consumers are not read right by the firms.

Physical Self-
Needs Esteem actualization

Belonging
Safety
Mixed Service Physiological

Needs Needs

Diverse
Needs
Aspirations
Desires
Esteem Emotional Wants
Needs Needs
Needs

Experience
Needs

A sharp identification and definition of needs is the basic foundation for effective product development and marketing
Need Discovery – the Start of a Start-up
Needs may be known or unknown, and more importantly linear or non-linear. Non-linearity implies a relationship that
cannot be predicted by proportionality with the present or the past. It needs innovative or differentiated ideation.

“Non-linear Known”
“Non-linear Unknown”
is a space for differentiating
is the ideal space for
start-ups from established
Non-linear innovative start-ups
firms

The Need-
Futurism
Marketing Pivot

Linear
“Linear Unknown”
“Linear Known” is a space for creative start-
is a space in which ups and established
established firms excel entrepreneurial firms

Known Unknown

Need

The foundations of marketing for a start-up are laid when the hitherto unknown need is perceived and solution provided
The 4 Ps of Marketing in a Digital Era
Successful marketing requires emphasis on 4 Ps, variations of which contribute to the effectiveness of marketing

Design Gross price

Specifications
PRODUCT PRICE Net price
Styling Discounts
Quality Payment terms
Warranty Credit period
Brand etc.,
Service etc.,

4Ps
Sales force Channels
Sales promotion Warehousing
Offers Retail locations
Advertising Inventory
Brand building Transportation
E-marketing PROMOTION PLACE etc.,
etc.,

Physical Digital Omni

The digitisation processes impact the traditional 4 Ps in multiple ways, both competitively and collaboratively
Granularity of Sales
The sales a firm experiences tends to be only a fraction of the total available market. Marketing leaders need to
understand the market in totality, and strategise to expand the market currently catered to by the firm.

Operating
Year 1 Year 2 Year 3 Year 4 Year 5 Market for the
Firm
Available Market
for the Firm
Available Market
for the Industry
Segment

Available Market for

the Industry

P1M2 P2M2

P1M1 P2M1

This analysis needs to be carried out in respect of homogenous product clusters (P1, P2, P3 etc.,) and homogenous
market groupings (M1, M2, M3 etc.,). This analysis needs to be carried out over a time horizon for execution.
Product-Market Grid: the Classic Market Growth Strategy
The matrix of products and markets is a classic strategy that marketing and business leaders deploy to chart growth.

Creation of New Markets,

Expansion of Current Markets
Seeking out New Markets for
and Market Share
Existing Products
New Improvement with New
Products

Product-Market
Markets
Grid

Existing Expansion of Current Markets

Market Share Improvement
and/or Market Share
with Better Penetration of
Improvement with New
Current Products
Products

Existing New

Products

The two quadrants driven by new products serve as the natural play for start-ups and entrepreneurial firms, small or big
The New Marketing Realities

Three Major Market Forces Two Key Market Dynamics Drivers of Integrated Marketing

Product-driven
Marketing
Technology

New
Consumer
Requirements
Need-centric
Marketing

Globalisation Renewals
Transformations

Person-oriented
Marketing

Environmental,
Social and New
Health Company Experience-driven
Responsibility Capabilities Marketing

Adapted from: Marketing Management by Philip Kotler and Kevin Lane Keller, 15th Edition, Pearson Education, 2016
Consumer Behaviour
Consumer behavior is not always rational or pre-planned. The best of marketing plans can go awry when environmental
variables alter the market dynamics. Growth, liquidity, and even hope drive positive consumer behavior, and vice versa.

HNIs Stable, luxury, low

volume needs

Aspirational Volatile, premium,

Consumers mid-volume needs

Stable, basic, high

Bottom of the volume needs
Pyramid Consumers

Consumer behavior tends to be unpredictable in respect of segments where purchasing power and quality of life
expectations are dynamic, and are fueled by economic growth and liquidity push.
Influencers on Consumer Behaviour
Different types of consumers are influenced by different factors, often called the ‘marketing mix’ in marketing strategy.

HNIs Communication of
luxury, esteem, high
quality

Aspirational Communication of
premium features
Consumers

Communication of basic,
functional needs with
Bottom of the affordability
Pyramid Consumers

Consumer behavior tends to be unpredictable in respect of segments where purchasing power and quality of life
expectations are dynamic, and are fueled by economic growth and liquidity push.
Buyer-Seller Characteristics Buyer Seller

Methodical Corporation
Laudatory

High Price-
Low Cost- High Quality
High Quality
Volumes
Beyond
Budget Based Budget
Volumes

Motivated
Non-
Emotional

Induced Need
Driven
(cash or kind)

Replacement
Need and/or Driven
Esteem
Driven

Low Budget High Budget

Emotional Influential

Individual as

Buyer Seller

Buyer-Seller Characteristics vary substantially depending on whether the consumer is an individual or organisation.
Digital Impact on Buy-Sell

Excessive
Discounts

Greater
Lower Level of
Transparency
Intermediation
and Choice

Instant Visibility of
Total Digital
Universe

Reliance on
Word of Mouth Time-optimised
and Digital Purchasing
Reviews

Lack of Physical
Look-Feel

Standardised returns policy is a hallmark of reputed digital sites, reinforcing level of confidence.
Customer-Product Profitability Analysis
Customers and products vary in terms of respective profit potential. The company must choose an appropriate
product-customer mix that maximises overall profitability. At the same time, certain customers and products may be
retained despite low-profit or loss making situation to preserve overall business equity with the marketplace.
Customers

Customer Customer Customer

Group 1 Group 2 Group 3

Product 1 + + + Highly Profitable

Product

Product 2 + Profitable Product

Product 3 _ _ Unprofitable Product

Product 4 _ Highly Unprofitable

Product

High Profit Low Profit Loss Making

Customer Customer Customer

Adapted from: Marketing Management by Philip Kotler and Kevin Lane Keller, 15th Edition, Pearson Education, 2016
Product Marketing Plan
Prior to marketing a product, a company is well-advised to undertake pilot marketing of the product in the target markets,
following the previously discussed processes of design thinking leading to prototyping, testing and validation.

Design
Thinking
Target
Prototyping Product Customer Product-
Variants Groups Market
Testing and Group
Validation

Prototyping Pilot Marketing Marketing

Many marketing plans do not provide adequate time for pilot marketing. While pilot marketing may not lead to any
change in specifications once a proper development protocol is followed, it will provide valuable inputs for structuring
appropriate market positioning and communication strategies.
The Perception Filters
Customer acceptance of a product is not a matter of mere cost-price arithmetic. It is a resultant of perceptions too.

Value influencers
Benefit Arithmetic
• Product cost • Monetary value with the Company
• Service cost • Tangible • Non-monetary • Repricing
• Usable life • Intangible value • Discounting
• Lifecycle cost • Trade-in and trade-
back etc.,
Cost Arithmetic Value Perceptions

Creating favourable perceptions or overcoming unfavourable perceptions is the primary task of a firm’s marketing
communication strategy that includes advertising and sales promotion.

Communication Options

Direct Print Television Digital Social Media Event In-store

Communication Advertisement Advertisement Advertisement Promotion Promotion Promotion
Product Purchasing Decision
Product purchasing decision is an interaction of multiple variables – a process which is simple as well as complex.

Product purchasing
decision is enabled
by
Product purchasing
Product promotions Brand equity
decision is made by

Product purchasing
Usage requirements decision is influenced Value perceptions Value experiences
by

Product purchasing Product choices Product purchasing Reliability

decision is amplified offered by multiple decision is reviewed Serviceability
by companies by

Economic conditions Product purchasing

Post-purchase use of Features
Social mores decision is expanded
product in terms of Functionality
Cultural influencers by

The interplay of variables prior to purchasing decision are usually overtaken by user experiences post-purchasing
decision; these experiences serve as key parameters of customer loyalty and brand equity.
Building Brand Equity
Brand equity denotes the tangible commercial value and the intangible goodwill that the name of a brand that represents
the product or service carries. Brand equity gets built up over time. Factors that contribute to brand equity are:

Product
Performance

Corporate Product
Credibility Reliability Brand
Brand Loyalty
Differentiation

Brand Equity

Product Product Brand Recall

Affordability Serviceability

Usage
Experience

Usually brand equity and corporate equity are positively correlated although there could be exceptions whereby a good
brand could exist under a not so well-known corporate umbrella and a good corporation could have ordinary brands.
Customer Relationship Management
Customer Relationship Management (CRM) comprises the methodology and technology for governing the relationships
between the company and the customer to ensure better customer experiences and improving business potential in the
process. CRM has moved from knowing the customer better to discovering the customer needs more proactively.

Salesforce
Engagement

Cashless
Data Analytics
Checkout Customisation Collaboration

CRM Tools

Communication
Artificial
Digital Payments
Intelligence

Digital
Communication

Customer satisfaction and customer retention are two basic outcomes of CRM. Digital CRM goes farther in terms of
reading customer mind and behaviour to develop cues for better engagement between the company and customers.
Retailing Options
A company has multiple options to reach the products to consumers. While direct to consumer sales (from factory) is
feasible, retail happens through one or more of the following retail formats; from single entity to retail chains. Some are:

Single Retailer

Digital Company
Marketplaces Retail Stores Retailer Licensing and
Independence Franchising

Retail Formats

Retailer or Joint Ventures

Single Brand
Consumer
Retail Chains
Cooperatives

Multi Brand
Cooperatives

A company has multiple formats it can choose from for retailing; in many cases, deployment of multiple retail formats
helps the company broaden product visibility, enhance customer reach and maximise sales potential for its products.
Packaging
Packaging goes far beyond the functional requirement of protecting a product as it gets delivered from factory into
consumer’s hands; Creative and quality packaging can be an effective consumer protection and company marketing tool.

Compact,
Robust and
Protective

Reusable Customised
and/or to the
recyclable product
Tamper-proof Traceable

Characteristics of
Good Packaging

Colourful and Uniquely identifiable

Transportable
attractive

Readable and
instructive

Even a great product can lose its value without good packaging. High quality and consummate nature of packaging is an
essential component of contemporary marketing. Labelling is an integral part of packaging. Packaging cum labelling
design is an integral part of product design and warranty. Poor packaging and labelling cause product adulteration.
Labelling
Labelling is the essential identification of a product. It could be a paper layer securely bonded to the product container,
embossed or engraved on the container with digital identification support through barcode, RFID and track and trace.

Compliance with
legal
requirements

Aligned with
Usage
best labelling
instructions Certified Informative
practices

Some
Characteristics of
Good Labelling

Storage Complete Protective

conditions and product
precautions information

Lot number,
manufacturing
date and time
and expiry date

The label is an integral part of not only the product container but also the primary, secondary and tertiary packaging
Wholesaling
Wholesalers are the intermediaries who stock the products before they reach the retailers. Wholesalers act as important
buffers between the company and retailers. Typically, wholesalers have the power to stock multiple SKUs, and supply
products just in time to retailers. Wholesalers are also called Consignment and Forwarding Agents. Multiple models exist.

Company Creates
buffers

Wholesaler Retailer Consumer

Matches
demand and
supply
Retailer Consumer

Protects from
shortages but
Consumer adds costs

Wholesaling is an integral part of marketing network and determines the efficiency and effectiveness of retail-level
customer fulfillment. Typically wholesalers are centralised and customised even as retailers are widely dispersed.
Dealership
Dealership is a combination of wholesaler and retailer roles that is found in industries such as automobiles and whitegoods.
Dealers purchase products wholesale from the company and sell directly to customers. Dealership is useful when products require
large display areas and ‘look-feel-tryout’ prior to purchase, and when products need considerable after-sales service support.

Dealers are typically dedicated to companies and product-lines

Dealers act as extended arms of companies with their exclusive relationships

Dealers estimate demand and provide for adequate quantities of products at their
end for customer choice

Dealers typically commit significant resources for sales and service infrastructure

A good dealership goes a long way in building brand equity for a product

The sale to a dealer by the company is called the primary sale and the sale by the dealer to the consumer is called the
secondary sales. Sale to a dealer need not always represent the real customer demand fulfillment.
Transportation
Transportation is the branch of marketing that deals with reaching the company’s products to the primary points of sales through
various modes of transport. Subsequent transportation to retailers is undertaken by the wholesaler.

Transportation is an often ignored component in the Indian marketing strategy

Bad transportation is one of the major Good transportation ensures packaging Cost of transportation is important in
causes of product losses and recalls integrity and product safety export operations

Certain products require cold chain transportation logistics from the first mile offtake to last mile delivery

Need for temperature controlled trucks and warehouses across Particularly required for perishable products, pharmaceutical
the nation to transport and store materials/products properly products and certain key temperature-sensitive raw materials

Good Transportation Practice helps firms achieve transportation traceability and optimal operation costs

Transportation as a function should be provided due

HVAC systems and data loggers help implementation of GTP
organisational recognition

Transport efficiency (speed, cost, timeliness, traceability, and safety) would be a source of marketing advantage. Multi-
modal transportation and ‘hub and spoke’ transportation models help a firm optimise its transportation efficiency.
Market Segmentation
Market segmentation involves segmenting the total market (ie., the universe of customers relevant for the product
family) in terms of certain common characteristics related to usage of the product and affordability by the customer.

Samsung Galaxy S10 Range Galaxy Note 10 Range Samsung Galaxy S20 Range

Samsung Galaxy A70 Series Samsung Galaxy M Series Samsung Feature Phone

With specifications ranging from 1 GB memory to 1 TB memory, 2 MP camera to 108 camera and steep gradients on a host of features and
prices ranging from Rs 10,000 to Rs 100,000 in steps of Rs 10,000, Samsung segments mobile phone market like no other manufacturer.
Specifications Lead to Segmentation – Smartphone Example

Galaxy Galaxy Galaxy Galaxy Galaxy Galaxy Galaxy Galaxy Galaxy Galaxy Galaxy
A10 A50 A70 M10 S10 S10+ NAC10 NAC10+ S20 S20+ S20 Ultra
Approx
136 x 76 156 x 75 x 165 x 77 156 x 76 x 150 x 70 x 158 x 74 x 151 x 72 x 162 x 77 x 152 x 69 x 162 x 74 x 167 x 76 x
Dimensions
x8 8 x8 8 8 8 8 8 8 8 9
(mm)

Height (cm) 168 165 183 163 157 198 168 196 163 186 220

Frame build Plastic Plastic Plastic Plastic Aluminium Ceramic Aluminium Aluminium Aluminium Aluminium Aluminum

Super Super Dynamic Dynamic Dynamic Dynamic Dynamic Dynamic Dynamic

Display IPS LCD PLS TFT
AMO LED AMO LED AMO LED AMO LED AMO LED AMO LED AMO LED AMO LED AMO LED

Size (inches) 6.2 6.4 6.7 6.2 6.1 6.4 6.3 6.8 6.2 6.7 6.9

Resolution
271 403 393 270 550 552 401 496 563 525 511
(ppi)
32 GB - 64 GB - 128 GB - 1TB - 256 GB - 512 GB - 128 GB -
32 GB - 512 GB - 128 GB - 128 GB -
Memory 2 GB 4 GB 8 GB 124 GB 12 GB 12 GB 12 GB
2 GB RAM 8 GB RAM 8 GB RAM 8 GB RAM
RAM RAM RAM RAM RAM RAM RAM
108 + 48 +
22 + 8 + 7 12 + 12 + 12 + 12 + 12 + 12 + 12 + 12 + 12 + 64 + 12 + 64 +
Main Camera 13 MP 16 + 5 MP 13 + 5 MP 12 + 0.3
MP 16 MP 16 MP 16 MP 16 MP 12 MP 12 + 3 MP
MP

Selfie Camera 5 MP 16 MP 32 MP 5 MP 10 MP 10 + 8 MP 10 MP 10 MP 10 MP 10 MP 40 MP

Battery (mAh) 3400 4000 4500 3400 3400 4100 3500 4300 4000 4500 5000

Price (Rs.) 8000 14000 19000 7500 45000 66000 70000 80000 67000 74000 93000

Main Selfie
Display Build Memory Battery
Camera Camera
Quality Quality Capacity Capacity
Capacity Capacity

28
Product Lifecycle and its Management

Product Lifecycle (PLC) covers the growth of the product from the first launch in the market place to its decline; PLC can
be extended with product improvements and extensions

Extension with
product
improvements

Introduction Growth Maturity

Decline

Sales

Time

Product lifecycle extensions can be of limited use when faced with disruptive technological developments;
nevertheless, just as basic feature phones co-exist with smart phones, basic products can continue to be of relevance.
Building Strong Brands
Summary of Product Life Cycle Characteristics, Objectives and Strategies
Introduction Growth Maturity Decline

Characteristics

Sales Low Sales Rapid Rising Sales Peak Sales Declining Sales

Costs High cost per customer Average cost per customer Low cost per customer Low cost per customer

Profits Negative Rising profits High profits Declining profits

Customers Innovation Early adopters Middle majority Laggards

Competitors Few Growing number Stable number beginning to Declining number

decline

Marketing Objectives

Create product awareness Maximize market share Maximize profit while Reduce expenditure and milk
and trial defending market share the brand

Strategies

Product Offer a basic Product Offer Product extensions, Diversity brands and items Phase out week products
service, warranty models

Price Charge cost-plus Price to penetrate market Price to match or –best Cut Price
competitors’
Distribution Build selective distribution Build intensive distribution Build more intensive Go Selective: phase out
distribution unprofitable outlets
Communications Build product awareness and Build awareness and interest in Stress brand differences and Reduce to minimal level
trial among early adopters the mass market benefits and encourage brand needed to retain hard – core
and dealers switching loyals

Adapted from: Marketing Management by Philip Kotler and Kevin Lane Keller, 15th Edition, Pearson Education, 2016
Price Elasticity of Demand

The concept of price elasticity of demand describes the elasticity of demand (higher or lower)
to the price (lower or higher) corresponding.
Perfectly Inelastic (Demand
completely unaffected by Price)

Price Perfectly Elastic (Demand

will vary despite static Price)

Unit Elasticity

Demand

The nature of price elasticity curve varies depending upon the nature of product and structure
of the industry. Typically, price elasticity works in a range for each product-industry situation.
Entry Deterrent Price
Propounded by Professor Michael Porter, entry deterrent price is a hypothetical concept that focusses on
the prevailing structure of prices (and related factors such as product quality and service) which just
balances the potential rewards from entry (forecast by the potential entrant) with the expected costs of
overcoming structural entry barriers and rising retaliation.

Factor Cost ($)

Entry likely to be
Material Cost 1000 Premium for muted or
New Entrant unsuccessful if
Conversion Cost 400 entry price higher
Entry Deterrent than entry
Cost of Goods 1400 Price deterrent price
Marketing Cost + Fixed 100
Dealership Cost
Advertising & Sales 100
promotion Cost
Sales Force Cost 100
Entry likely to
Total Cost 1700 be successful if
entry price less
Margin 300 than entry
deterrent price
Target Price 2000
Industry Potential
Average Opportunity
Player Player 32
Marketing Organisation
Marketing organisation needs to be well designed and structured given the spread of marketing functions across a vast nation

MD

Chief
Marketing
Officer

National National
National Sales
Distribution Product
Manager
Manager Manager

Zonal Sales Zonal Sales Zonal Sales

Zonal Sales
Warehousing Transportation Logistics Manager - Manager - Manager - Product Line 1 Product Line 2 Product Line 3
Manager - East
North West South

Product management, sales management and distribution management need to act in close coordination as an
integrated system to deliver products and services to customers efficiently and effectively.
 NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURE 57
Course Module 15 (Part)

Start-up Case Studies

Part 1

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
Peter Drucker states that entrepreneurship is
neither “magical” nor “mysterious.” In his
opinion, entrepreneurship is a discipline and,
like any discipline, it can be learned.

Kuratko (2016) adds “like all disciplines,

entrepreneurship has models, processes and
case studies.”

Drucker, P.F. (1985). Innovation and Entrepreneurship. New

York: Harper and Row Publishers.

Kuratko, D.F. (2016). Entrepreneurship: Theory, Process and

Practice. Cengage Learning, 10th ed.

This module presents 12 case studies of start-

ups that were established by professionals or
graduates, and developed by them on the path
of success, overcoming vicissitudes of
entrepreneurial journey. In each case, certain
points of learning are summarised.
35
 Case Studies of Twelve Entrepreneurial Endeavours
The case studies are based on my personal knowledge of the accomplishments of the start-up
founders and/or professional CEOs in each case

The firms cover a wide range of settings - from pharmaceutical to engineering industries, and from
educational to culinary services - reflecting multiple innovative business models that are feasible.
Note: Copyrights of the logos and images used in this presentation for visual and educational purposes belong to the respective owners
Industrial Settings of the Twelve Entrepreneurial Endeavours

Science-based Pharmaceutical Start- E-Commerce Transformation under

up Professional CEO

Entrepreneurial Engineering
Educational Start-up
Firm

Science-based Nutraceutical Social Entrepreneurial

Start-up Enterprise

Human Resources Service

Self-publishing Start-up
Start-up

Technology-based Smart Wellness Start-up with Social

Wearables Start-up Purpose

Import Substituting Engineering Start- A Hypothetical Food Product Start-up

up
Classification of the Twelve Entrepreneurial Endeavours - 1

Twelve Cases
Replicative
Entrepreneurship

Innovative
Entrepreneurship
Classification of the Twelve Entrepreneurial Endeavours - 2

Twelve Cases* Opportunity

Entrepreneurship

Necessity
Entrepreneurship

Employee
Entrepreneurship

Social
Entrepreneurship
* Can be either Replicative or Innovative Entrepreneurship
RiconPharma LLC: Formulating Entrepreneurial Discovery
RiconPharma was founded by Dr Praveen Reddy, Billa who worked as the head of Formulations R&D
in Orchid Pharma, itself a differentiated first generation enterprise. Key facts are as below.

Praveen was a leader of exceptional scientific creativity and methodical management, with a firm grip
on all types of formulations development and analytical development.

Praveen and co-founders worked on a start-up idea for six months, developed an operational
plan, roped in investors, and established Ricon Pharma LLC in New Jersey in October 2007.

The key pivot for their strategy was Ricon Pharma India Pvt Ltd (Ricon India) which was set up as
a wholly owned subsidiary in 2008, directly managed by Praveen once he left Orchid in that year.

By developing multiple formulations in different dosage forms in Ricon India (except capital-intensive
injectables), and licensing them to marketing partners in the US, Ricon got off to a quick start.

Heading the start-up, Praveen could practise lean development and achieve faster go-to-market. He attributes his
success, in career or as a start-up founder, to his ability to assemble a team of competent scientists and train them
to target greater accomplishments.
RiconPharma: Navigating Choppy Waters
Ricon, despite the successful ramp-up in the first four years, also illustrates how environmental changes
could disrupt even well-crafted plans. It also demonstrates a methodology to cope with vicissitudes.

Increase of fees for Merger with Ingenus

With greater resources,
filing of ANDAs with Pharmaceuticals, also a
increase of team
US FDA, and marketing partner, to
strength and ANDA
lengthening ANDA achieve greater
pipeline
approval times strength

With presence in US,

Uncertainty caused by Entrepreneurial litmus EU, and India, Ricon
regulatory changes test for grit and passion under Ingenus became
a global enterprise

By 2017, the merged

Private Equity diffident Tough times between entity had a pipeline of
to support as a 2012 and 2014 for the 60 ANDAs and
consequence firm development capacity
of 20 ANDAs per year

Ricon demonstrates how an India-specific start-up with core technology and management strengths can last
through tough times and evolve into a global enterprise through appropriate partnership
RiconPharma’s Collaborative Strategy

GLOBAL COMPETITIVE
ADVANTAGE
Optimised global
CORPORATE RESURGENCE development and
manufacture
Corporate merger
Enhanced financial strength
SURVIVAL IN EXTERNAL Wider therapeutic
Larger team portfolio
TURBULANCE
Bigger portfolio of ANDAs
Environmental headwinds
INDIA COMPETITIVE Access to manufacturing Complex generics and
Search for partners for footprint
ADVANTAGE scheduled drugs
survival and growth
Lean development out of
India
Critical mass of ANDA
portfolio in multiple dosage
forms
Key Takeaways from RiconPharma
Core technical expertise coupled with value propositions from likeminded professionals can spark
entrepreneurial transformation in competent professionals despite moorings to larger organisations

Technical
competence as
the start-up
seed
India as the
Merger for base for
financial and efficient and
technical effective
synergy technical
delivery
Success Model
for Science &
Technology
Start-up
Course
Rapid-lean
corrections to
development
cope with
with high
environmental
product quality
changes

Intellectual
property and
product assets

Ricon demonstrates that technological acumen coupled with strategic agility and entrepreneurial passion helps
start-ups rediscover their growth even in the face of environmental adversities.
Groz Tools: A World of Design Thinking
Groz Engineering Tools Private Ltd (Groz) was established in 1976 by Anil Bammi, a first generation
entrepreneur. Over the last 43 years, Groz took great strides to put India on the world map of tools.

The period of 1970s and 1980s was an era in which the world did not see India as a high quality manufacturer

Anil vowed to “Make in India” for the global market. Started off making He expanded into tools and equipment in the early ‘80s, and thereafter
bicycle locks for the highly quality conscious German market. there has been no looking back.

The last four decades have seen a continuous wave of product diversification and manufacturing expansion by
Groz

Made large investments into sophisticated technical facilities and the Focussed on timely expansion and strengthening of manufacturing
latest manufacturing equipment, including CAD and CAM infrastructure to support portfolio expansion

Groz today manufactures over 12,000 SKU’S. Groz employs a skilled workforce of close to 2200, and operates in
over 82 countries of the world with close to 50 million satisfied users

From hand tools, the range has been expanded to include greasing All tools and equipment are certified to international standards and
equipment, pneumatic and electric lubrication equipment too supplied to marquee global customers

Groz’s journey, since inception, was one of ambitious plans and focussed execution of a young man turning a humble
product into the cornerstone of a world-class manufacturing company offering a varied range of quality tools.
Groz Tools: A Calibrated Journey
The milestones of Groz reflect how an entrepreneurial firm can transform itself from humble beginnings
to a global presence based on design thinking for customers

• Started from a home office in 1976, began manufacturing bicycle locks for Germany
1976-2000 • Kept expanding his facilities and by the year 2000 he was managing close to 8 locations in North India

• In 2003, brought 5 manufacturing locations under one roof to set up a modern integrated plant in
Gurgaon - one of the largest of its kind in North India with high backward integration.
2003-2006 • In 2006, he acquired Accurate Products / A.P. Tools based in Chennai.

• Set up another manufacturing unit at NSEZ-NOIDA in 2012 to expand tool and equipment capacity
• In 2017 he expanded the infrastructure at Accurate to set up a cold forging unit and install high-precision
2012-2017 CNC machinery.

• Groz manufacturing facilities and operations are certified to several national and International standards
such as ISO 9001, ISO 14001, IATF 16949, and Vde 6.3.
Certifications • Fulfilling customer-centric designs became a key motto at Groz

• Inducted son Dhiren Bammi through calibrated moves across roles, to strengthen the leadership
bandwidth
Leadership • Ensured clear organisational roles and responsibilities, and accountabilities

Despite the small and medium scale of operation, Groz developed as a well-structured and well-staffed organisation,
which enabled the Company become globally competitive.
The Wheel of Globalisation for Groz

Entrepreneurial
leadership People-oriented
balance at the top leadership style

Aggressive global
marketing Customer-centric;
development fulfilling every
Design
Thinking for tooling need
Integrated
Value Chain

Supply chain management Design thinking

for judicious in-house and across the value
out-sourced mix chain

In-house manufacturing
capacity for quality assurance

46
Key Takeaways from Groz
Groz demonstrates that, more often than not, passion and commitment enable a start-up founder
fight national perception battles and emerge successful even globally.

Understand
customer needs
from field visits

Control of the
entire Design and
development Manufacturing
and delivery integration
value chain

Design Thinking
Model

Mastery over
outsourcing and
Operational
supply chain for
excellence
high product
variety
Elegance in
design, and
perfection in
manufacture

Groz is an instructive example of how a founder who walks the talk can create a unique organisational culture of
competencies and competitiveness within the framework of a creative business model.
 NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURE 58
Course Module 15 (Part)

Start-up Case Studies

Part 2

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
Natsol Laboratories: Natural Solutions to Wellness
Natsol was co-founded by Dr G V Subba Raju, an accomplished scientist with rich experience in India and US, P V
Krishnam Raju, highly experienced in leading commercialisation in diverse companies, and D S Bhakara Raju, a
highly experienced leader in accounting and finance (was the CFO of Orchid Pharma)

Stevia The team identified stevia, a unique plant based sweetener as the seed for Natsol
• Natsol’s USP lies in its innovative science that overcomes the inconsistencies and challenges of
characterising herbal compounds and develops pharmaceutical grade products from herbal base
extractions

Quality Developed Stevia with purity >99% with consistent quality and documentation
• Natsol underlines the hypothesis that in any domain early thinkers and quality providers would be
natural pioneers

Sourcing Placed considerable emphasis on right sourcing of the plant-based ingredient

• Emphasis on raw material plant sources originating in India and not available in other countries,
especially China, so that the company would be more competitive in the initial stage

With the focussed investments made in R&D, Natsol developed products such as Turmeric, Fenugreek, Boswellia,
and Rutin derivatives which helped Natsol gain market entry in India and abroad
Natsol Laboratories: Successes and Challenges
Natsol had a successful entry into the wellness product category due to the scientific and technical as
well as financial expertise and experience of the co-founders. However, challenges did emerge.

Mostly Demand generation from the

market-
oriented wellness industry

Competition from entrenched

products such as sucralose

Need for higher investments to

be a significant volume player

The natural products industry is still in a nascent stage with limited market potential, and is slowly picking up steam.
Natsol has to be prepared for the long haul which included partial or full dilution of founders’ stake to remain viable
Leveraging Core Competencies for Growth at Natsol

Careful
Core An emerging
Investments in selection and Ready-to-use
competence in Supply market for
R&D sourcing of plant
R&D of natural networking natural
infrastructure plants and derivatives
products products
products

Combination of Technology,
Business and Financial Start-
up Skills

51
Key Takeaways from Natsol
Natsol illustrates that when start-ups focus their science on developing creative product and market
niches they can be successful.

Complementary
competencies
of science,
business and
finance

Key competence
Natural wellness
in sourcing and
market niche
supply chain

Wellness Start-
up Niche Model

Distinctive
Product differentiation
development, of natural
the key driver ingredient
characterisation

Aspiration-
resource match
to optimise risk

Natsol is a case of a start-up’s established internal competency seeking an external commercial opportunity which is
still under evolution; success comes in slow steps until the breakout happens
Resource Bridge: Resourceful Positioning as a Search Firm

Resource Bridge was co-founded by K Ramadurai (Ram) and Saroja. Ram had years of senior consulting experience,
with BE and MS degrees from reputed universities in India and USA as well as a post-experience MBA from Indian
Institute of Management Ahmedabad. Saroja, Ram’s wife, was an experienced financial professional in her own right.

Given the intellectual and experiential background, setting up their own consulting start-up has been a natural play
for Ram and Saroja
In the early 2000s, the placement and search domains were The industry was multi-polar, with pricey global search firms,
seen as just recruitment enablers licensed national search firms and Indian recruitment firms

Companies lacked the finesse to distinguish between various needs and services

‘One size fits all’ approach from franchisee and indigenous Fixed pay oriented traditional compensation structures were
firms restrictive

The broader industry could not find the right value-nuanced intersection between ‘right price’ and ‘quick fit’.

Resource Bridge too started as a placement firm catering to And, did encounter challenges and constraints in gaining an
all levels effective market entry

The intellectual and analytical background of the co-founders enabled a course-correction that differentiated the firm
Resource Bridge: Engineering a Strategic Shift

Over a period of time Ram and Saroja course-corrected the firm’s strategy to focus exclusively on value-added search
space, letting go of generic recruitment or placement business. The firm took a call to concentrate on the search
space with focussed clientele, targeted placement goals, and structured processes.

Ensuring quick take-off of the A careful phase-in of search Two focus areas were
search business to fill the business was accomplished chosen: Finance Leadership
loss of placement business alongside calibrated phase- Transitions practice and
was absolutely critical out of placement business Professional Services practice

Industry specialisations
Ram headed the Professional
The team was expanded with relate to retail, fashion, and
Services practice while Saroja
partners and leads having industrials while leadership
headed the Financial
competencies appropriate to roles relate to finance,
Leadership Transitions
the new model commercial, and consulting-
practice
to-industry transitions

The revised business model provided a natural differentiator to start with, but required several other institutional
measures in the form of investment in people, information assets and training, to make the value proposition
tangible to the clients.
Strategic Definition of Business at Resource Bridge

 Multi-phase, stage-gated approach

 Optimal match between talent and
role
Search  Cultural synergy between
individual and corporation
 Intellect-based tools and
templates
Path chosen  Custom service for companies and
by Resource individuals
Bridge
 High Value - Low Volume play

Recruitment Placement

 Transactional approach
 A mass numbers game
 Expediency of demand-supply match
 Obsession with speed
 Medium Value - Medium Volume play
 Quality likely sacrifice
 Low Value-High Volume play

55
Key Takeaways from Resource Bridge
Resource Bridge is a remarkable example of how a play on talent can help a start-up establish a growth
niche in a crowded industry – in this case, the recruitment industry

Differentiated
Value
Proposition

Domain
Strategic Vision
Specialisation
with Structural
with Service
Agility
Differentiation

Intellect Based
Service Model

Co-founders’
Value-set of
complementary
founders
competencies

Strategic
flexibility

Resource Bridge, arguably, operates in a ‘low fixed cost-high variable margin’ business – the firm’s focus on strategic
differentiation and its consequent success points to the fact that even in crowded and fragmented markets start-
ups can succeed with differentiation
Conzumex: Smart Wearables
Conzumex Industries Private Limited (Conzumex) was established by K L N Sai Prasanth, an engineering design dual
degree post-graduate from Indian Institute of Technology Madras, Ajay Yathindra and K Karthik Reddy, both alumni of
IITM, and K Prathyusha, an alumnus of National Institute of Technology Warangal to fulfil their high-technology start-
up ambitions.

• Superior user experience as the

Aiming to build goal
consumer products • Focus on both B2C and B2B
approaches

• Combines the style of analogue

and smartness of digital
Muse Smart Watch • Payments capability as an
additional functionality

• Prior experience of magnetic

Passionate tech- charger start-up, since monetised
savvy co-founders • Accumulated experience of design
to delivery

Muse smart watch combines the elegance of an analogue watch as a fashion accessory with the smartness of a
digital smart wearable, with additional functionalities added
Conzumex: A Smart Wearable Faces High-tech Competition

Conzumex smart wearable product has a technologically unique USP. Prasanth Sai believes that Conzumex will
address various issues of smart wearables with its Muse Watch in a market targeted also by Nokia, Fossil and Armani

Conzumex smart wearable product has a technologically unique USP of combining analogue
watch fashion with digital smartness

Muse is an analog smart watch with a one-year battery life. It connects to Bluetooth and it
has automatic time-changing capability wherever required

The platform itself can be connected to content providers and professionals so that the
users can get professional advice

All these features harmonised in one package, assert the founders, will set the product
apart from competition

Starting operations in 2016, Conzumex sold its first batch of Muse smart watches in 2018
through crowd-funding platform Kickstarter, and received good feedback

Conzumex illustrates that with technological efficiency a start-up will not only establish a sustainable competitive
advantage but will also benefit from financial sufficiency
A Model of Strategic Disruptive Innovation at Conzumex

STYLE SUBSTANCE VALUE PREPOSITION

 Visible Product  Invisible digital  Immersive user

feature technology experience
 Elegant industrial  Powerful bio-  Higher hassle-
design tracking free, life-long
 Embedded  Elevated user value
material and functionality  Differentiated
manufacturing and cost-
technology effective

 Identify the unsolved  Ideate creative solutions

problem of the  Develop Minimum Viable
marketplace Product
 Identify the user pain
points
INNOVATING
FOR
DISRUPTIVE
GROWTH
 Prototype, test and validate
 Promote the compelling value Ultimate Desirable Product
proposition in the market place  Master supply chain for the
 Grow the industry around the least cost-best quality product
disruptive product  Commercialise the fully tested
and validated product

59
Key Takeaways from Conzumex

Conzumex is an interesting innovation-led start-up that could be a role model for young scientists and
technologists to come up with creative product ideas that can power India’s start-up movement.

Core
competencies
of technology-
savvy co-
founders
Creative
problem
Angel funding identification
and problem
solution
Technology
Driven Smart
Wearables
Model
Styling of watch
Global supply with utility of
chain fitness band
management and wellness
coach

Rigorous
prototyping
and validation

Conzumex itself is the prototype of a start-up movement that India needs – innovation, ambition, and disruption,
combining style and substance – its success would be inspirational.
Integrated Cleanroom Technologies – Employee Entrepreneurship
Integrated Cleanroom Technologies Private Limited (iClean) was established in 2003 by Gopi
Katamaneni, an expert in setting up sterile projects, with his savings and friends’ investments

Most clean rooms for pharmaceutical facilities were being imported by the industry at high costs
and long lead times even in the 2000s

Visualising the huge potential for ‘high quality-cost competitive’ clean rooms developed
indigenously, Gopi took an entrepreneurial call in 2003, leaving a safe and secure job

The company quickly set out to manufacture in India clean room panels for building
modular clean rooms in the pharmaceuticals space (branded iClean)

The team led by Gopi designed and developed their own flexible designs to meet the wide
range of manufacturing conditions that are characteristic of India

Inspired by his vision, experienced professionals joined the team while investors participated in
the capital structure

Gopi’s iClean is a fitting case of employee entrepreneurship, with a talented employee spinning out for the broader
industry good
Integrated Cleanroom Technologies – the Journey
Integrated Cleanroom Technologies Private Limited had a well-calibrated and structured business plan
that emphasised technological efficiency and financial sufficiency

• Multiple clean room products and accessories, in-house designed were added to the product range, and manufactured
in-house
Product • Additional pre-coated panels, GRP panels, fire doors, and select pharma equipment/accessories were added based on
Range joint ventures

• iClean has 9 manufacturing locations, multiple domestic customers, and exports to more than 15 countries. The initial
team of 16 employees grew impressively to 1200 employees
• Over 14 years, iClean became the largest cleanroom technology company in India with a turnover of nearly Rs 450 crores,
Scale with about Rs 50 crores being exported overseas

• In 2012, private equity player Global Environment fund (GEF) acquired a 26% stake. The company utilised the funding to
invest into automating the plant and for reaching new geographical areas.
• In 2015, Takasago Thermal Engineering of Japan took a stake of 33 percent as a strategic partner, providing an exit to GEF,
Investments and also providing additional capital to iClean.

• The company has a demonstrated quality record, both in terms of multiple quality accreditations and actual installation
performance, which has led to repeat customer orders.
• The Company is ISO 14000 and 18000 certified besides being OSHAS certified, reflecting the focus on environment and
Certifications safety.

Gopi attributes his entrepreneurial success to timely identification of the market potential, development of flexible
designs to suit multiple aseptic facility needs of India, focus on high manufacturing and installation quality, timely
completion of jobs, and the competitive value proposition for customers.
Leveraging Core Competence for Diversified Scale and Scope at IClean

Flexible and modular

designs to cater to the Control over manufacturing
diversity in quality, preferably through
pharmaceutical scale in-house plant capacity
and scope

The Challenge of
Pharmaceutical
Clean Rooms A motivated organisation
for an outstanding ‘design
Collaborations and to installation’ cycle
private equity for
greater business
sinews

Cost-competitiveness
vis-à-vis imports

63
Key Takeaways from iClean
Integrated Clean Room Technologies is a proof that a start-up can be a microcosm of a large industrial
operation, and that technology excellence and employee welfare are essential for start-up success

Import
substitution

Triad of design,
Financial manufacturing,
Sufficiency and quality
competencies

Integrated
Business Model

Pre-existing
Deep and
industrial
enduring
network and
customer service
relationships
Integrated end-
to-end operation
covering design,
manufacture
and installation

Manufacture of clean rooms for pharmaceutical operations requires a Quality mind-set. iClean has proved that even
a start-up can compete on its own with the best established firms of the world with the right strategic ingredients.
 NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURE 59
Course Module 15 (Part)

Start-up Case Studies

Part 3

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
Myntra, the Fashion e-tailer: Success Mantra from a Professional CEO
It is indeed difficult to find case studies of professional CEOs taking over from the founders, promoters, or family
members to run the companies they set up and ran with passionate attachment. Ananth Narayanan who took over in
October 2015 as the Chief Executive Officer of Myntra was one such rare case.

Narayanan has been a director at McKinsey & Company, with an association of 15 years with the famed global consulting
company. Ananth received his B. E. degree and M. S. degree from reputed Indian and American universities

With his financial acumen and marketing insights, he has helped start-ups create systems and processes, build
stakeholder communities, effectively reach out to markets, and scale up their businesses

His consulting experience and contributions to start-ups made Ananth a true turnaround specialist for Myntra as
he embarked on a strategy of making Myntra the first profitable e-commerce operation in India

He believed that the traditional retail way of selling fashion was ripe for disruption. Using technology to solve
fashion problems at scale was needed, he felt.

He set out to disrupt fashion, across the value chain - disrupting how the firm built brands, how it distributed/sold them,
and how it would offer services in a big way

Alignment between the promoters and the professional CEO is vital for successful leadership transition in start-ups.
The positive orientation shown by the Bansals, the founders of Flipkart and Myntra has been a supportive factor for
Ananth’s smooth transition into Myntra with the goal of disrupting for scalability and sustainability.
 Myntra, the Disruption Strategy
Ananth went about his mission with a clear strategy to redefine priorities, structures and processes towards
increased scale with profitability

Reduce Increase Improve Realign to

costs and use of product Indian
discounts technology mix seasonality

Pursue Optimise Make allied

Revamp
economies supply strategic
website
of scale chain acquisitions

This has been made possible by investing in and using artificial intelligence and other digital technologies to understand
customer desires rather minutely, and deploying such leading edge technologies for the benefit of customers
Professional Transition Mantra at Myntra

Professional Focus on
leadership profitability

Restructuring Modern digital

business technologies such
fundamentals as AI and ML

Organising for Holistic paradigm

higher order for
growth transformation
68
Key Takeaways from Myntra
Myntra is a unique case of a professional CEO turning around and transforming an entrepreneurial
firm that was still enveloped by a larger founder entrepreneurial ecosystem.

Seamless
induction and
integration with
founders’
support
Higher order
Vision-strategy- mission for
execution triad business
transformation

Professional
Transformation
Model

Conceptualise
Build team
and execute
participation
novel solutions

Deploy modern
digital
technologies

Myntra serves as a role model to guide start-up founders whose firms have scaled up to turn over their firms to
professionals, and re-focus on what the founders are good at – establishing more challenging new start-ups!
Chennai Business School – Educative Employee Entrepreneurship

Chennai Business School (CBS) was founded in 2006 by five educational entrepreneurs, J N Amrolia, Pradipta Mohapatra,
K. Krishnan, Mohan Menon, and N. Sathasivam, while continuing their professional leadership roles in their firms

While being investors, the founders of CBS mentored the staff and students to shape and grow
CBS into a top-rung management education institute – it was one of the youngest B-Schools to
make it to the Top 100 in the country

The major USP of CBS was the industry orientation and real-world learning, given the
background of the five founders, who had long years of experience across various
industries

With its one-year full-time management programme and careful selection of students, CBS
was able to offer to the industry an excellent pool of well-trained management
professionals who were keen to work on real problems in the factories and marketplaces

Mentoring provided by the founders to the students on career orientation and personal
development served as a major differentiator and contributed to CBS students doing well in
their corporate careers

Companies in the brick and mortar businesses as well as digital marketplaces were equally enthusiastic in hiring CBS
graduates for the appropriate profiles they had, and the grooming received in CBS.
Chennai Business School: When Growth Brought Its Challenges
CBS growth was supported by a differentiated practice-oriented strategy, which also brought in its wake certain
challenges – a new campus in Sri City had to be divested due to cost and viability conditions. In addition:

The targeted student mix of fresh and experienced (2 to 4 years) posed its
challenges in pedagogy

• The founders’ and the faculty members’ experience in dealing with

employees of different age groups and cultures enabled them handle this
diversity with ease.

Positioning the graduates as “feet on ground” experienced graduates enhanced

expectations of the industry

• Such challenges were overcome by the founders’ ability to attract faculty

from premier institutes who ha worked in Industry for more than 20 years,
and could therefore enhance the ‘industry readiness’ of graduates.

The five educational entrepreneurs of CBS, by their inspiration and execution, proved that employee
entrepreneurship that is not in conflict with their respective organisational goals but is in pursuit of greater social
good as an entrepreneurial entity is a feasible and viable proposition
The Founding Pillars of a Successful Business School

A Successful Business School

A Relevant Business Management Programme

Professional Creative First to

Industry-
participation niche of Affordable market in an
specific
and one-year fee structure underserved
orientation
mentoring Programme area

A passion to contribute in educational field

72
Key Takeaways from Chennai Business School
Private enterprise in education in India has not been known for transparent and professional leaders.
CBS has emerged as a role model of how professionals can establish and grow educational start-ups.

Felt need for a

unique model of
management
education
Continuous Passionate
mentoring of vision to
students and contribute in
staff to realise the field of
the objectives education
Educational
Value
Proposition
Model
Differentiated
Affordable
positioning to
pricing that
attract both
enabled a large
students and
student base
companies
Professional
execution for
translating
educational
dreams into
realities

The successful educational start-up model pioneered by CBS can serve as a template for skill development
initiatives in different domains by leaders of science, technology, and business
 Puliyogare Travels: A Taste of Tradition
Puliyogare Travels, was founded in 2010 by Rakesh Raghunathan as a physical-digital platform through which Rakesh
is focussed on discovering, curating, and popularising India’s rich culinary practices

Puliyogare Travels offers as its main services culinary holidays, cookery workshops, food trails and recipes

Deep dives into rural and traditional kitchens, including the mystical Brings forth culinary packages through custom designed and speciality
temple kitchens focussed workshops

His cookery workshops where he showcases the less known but delectably native recipes from various regions in
South India are a major hit.

Sacred Offerings and The Pilgrim’s Palate brought forth recipes from
His research on temple offerings is particularly noteworthy
noted temple kitchens as offerings to the Gods

He undertakes curated workshops for organisations and individuals based on specific requests

He also conducts TV shows on cookery, some of them in collaboration Many of the recipes that he discovers or curates are captured and
with professional chefs presented on his Puliyogare Travels Blog.

Entrepreneurship need not always mean establishing start-ups only to sell products or services, and scaling them up
through rapid commercialisation and valuation. A specialised social or cultural movement that binds people of
different backgrounds to a common cause is also entrepreneurial in nature. Puliyogare Travels exemplifies this.
 Puliyogare Travels: Food Start-ups Need an Extra Spice
Rakesh’s inspiration and satisfaction comes from preserving the ancient food-diversity of India for the current and
future generations

• A connoisseur of fine arts in his own right, Rakesh effortlessly weaves stories, songs, food, and crafts
into his thematic presentations
• His wife Preeti Mohan marries her love for the fine arts with that for food and travel, and expresses
Fine Arts through her pen for Puliyogare Travels.

• Conducts food trails for groups of individuals with unique holiday trips that take them through small
towns and villages in India to explore food in every region
• Such food trails are reinforced with cooking demos and snippets of history and culture related to the
Food Trails places

• Works with chefs of major hotel chains to curate special menus of the little known traditional native
delicacies for mainstream restaurant goers for specific periods.
• Considering that ancient wisdom always considered food as the real medicine for wellness, his
Hotel Chains culinary explorations constitute a well-meaning initiative of social rediscovery

For those who follow Rakesh for his creativity and passion, the question would still remain if he cannot, and should
not, be doing more to convert his food explorations and adventures into instruments of economic and social
development for the culinary artists and experts in the deep interiors of the fascinating Indian world of cookery.
Puliyogare’s Unique ‘Back to the Future’ Mission

 Well-proven culinary practice  Millennials interested in

and wellness wisdom The Person The Service tradition

 Confined to traditional  Eager to experiment with

homes and communities the combination of
tradition and modernity
 Deeply embedded in the
interior parts of the nation  Keen to participate in the
Distinctive, Differentiated, cultural experience with
Knowledgeable, Educative, elders and others
Explorative Cultural

 Cookery Workshops
 Food Trails
 Culinary Holidays
 Thematic Curation

76
 Key Takeaways from Puliyogare Travels
Puliyogare Travels is an interesting case study of a one-person mission to discover, preserve, and popularise India’s
culinary traditions. Puliyogare’s success points to certain ways in which traditional social and cultural facets can be
turned into popular start-up ventures in India.

Bridging the
cultural gaps;
urban-rural
and millennial-
traditional
Focus on social
Leveraging the
goodwill,
vast Indian
rather than
cultural
business
diversity
Social returns
Networking
and
Participation
Model
Life-changing Motivated by
plans for social
indigent skilled commitment to
people a cause
Vibrant social
media
presence to
establish
visibility

Puliyogare Travels opens up the perspectives of cultural entrepreneurship for start-ups that require knowledge
derived through exploration as much as persistence backed by passion – it certainly needs an additional resolve to
bring the indigent into the economic mainstream, and the affluent into the traditional interior.
Notion Press: Inking a Mark in Self-publishing
Teaming up with their close friend, Jana Pillay who had family-run publishing and distribution experience, Naveen
Valsakumar and Bhargava Adepalley established Notion Press as India’s self-publishing company in 2012

Start-ups are, at times, borne out of some difficult experiences faced by founders when they were users of
products or services.

When Naveen and Bhargava could not get their book published, they foresaw a need for establishing
a self-publishing company that would help budding and aspirant authors to publish their works.

Working from home for the first year, and splitting responsibilities among the three of them,
Notion Press published 50 books in the first year, with a revenue of Rs 40 lakh

Five years into the business, cash-flow and venture capital funded Notion Press, now has a 60-
member team and has seen revenue swell to Rs 10 crore (2016-17).

More than the revenue, the founders take pride and satisfaction that they supported over 1500 authors in
their “start-up” aspiration of publishing, with over 2000 published titles.

"We do not see self-publishing as a pure service-driven business, we treat every book as a start-up and the author as
the CEO," explains Naveen Valsakumar, the CEO of Notion Press.
Notion Press: The Success Factors
The founders of Notion Press understood that self-publishing has to be more than ‘vanity publishing’ for authors if
the initiative has to succeed as a sustainable business. The founders identified the need clearly and provided a
creative solution that was digitally accessible and financially affordable.

Traditional
Self-publishing
Publishing Author • Editorial support to
budding authors
Support and • Book design support
Digital • Complete
Interminable wait Access digitisation of the
Prompt publishing
even for good publication process
of qualified works
works

Low rejection risk,

• Diverse publication
High rejection risk with additional
editorial support packages
• Global selling on
Financial digital book sites
However, once However, the writer
Affordability • Standardised and
selected, publishing has to take
digitised royalty
house takes all responsibility for processes
responsibility marketing

The founders understood that the publishing business is a mix of people driven processes like editing and design which
require very creative people, and technology driven processes like printing, distribution, and marketing which require very
analytical people. The key differentiator for Notion Press is its ability to marry both these sides of the business seamlessly.
Key Success Factors Catered to by Notion Press in Self-publishing

Removal of pain
point of long wait
and arbitrary
rejection of
manuscripts

Packages that
suit different
Attractive kinds of
revenue sharing publishing
requirements

Key Success
Factors in Self-
publishing

Self-improvement Rapid ‘Go to

methodologies Market’
and tools Approach

Making authors a
part of creative
design

80
Key Takeaways from Notion Press
Notion Press is a perfect example of how start-ups can make their presence felt in a market that is eager for new
solutions. The self-publishing start-up’s success teaches aspirant founders to be perceptive about market dynamics
that present problems, and therefore are ready for a change based on creative solutions.

Focussed
problem
identification
with creative
solution
Start-ups need Prior
to assume risk experience,
on behalf of though not
customers essential, helps

Customer
Empowerment
Model
Digital
platforms for
Initial success
design,
needs
production and
sustainability
marketing
Joint ventures maximise reach
and
partnerships
optimise
investments

Notion Press has clearly notched up an initial success but further scale-up would depend on delivering on more cost-
effective value for authors, and also providing strategic adjacencies that are customer-centric, for example in affordable
and impactful book marketing. Start-ups should be prepared to diversify into services that enhance core delivery.
 NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURE 60
Course Module 15 (Part)

Start-up Case Studies

Part 4

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
Om Wellness & Healing Centre: Ageless Passion and Timeless Purpose

Om Wellness & Healing Centre was established by Om Prakash Arya upon retirement as Managing Director of Zydus
Hospira, capping over four decades of serving Zydus-Cadila, a leading pharmaceutical group.

Retirement, it is said, gives a unique, once in a lifetime opportunity to the retiring person to pursue
one’s aspirations and passions, unfettered
While in leadership, Om was passionate about the health and wellbeing of Post-retirement, Om discarded all alternative proposals on advisory and
his employees consultancy services and decided to focus on healthcare

And established in January 2016, a facility called “Om Wellness & Healing Centre” in Ahmedabad as an
initiative to promote wellness amongst members of public
It was set up in collaboration with CERAGEM from South Korea that
Through these machines, they provide free therapy to people to relieve
manufactures Automatic Thermal Massagers and has presence in several
various kinds of pains and make them healthy
countries

Ceragem positions this as Experience Marketing, where the customers first feel the benefits of the
therapy and then decide to buy the machine for use at home for all the family members
Om believed that ethical life results in a stress-free life which in turn
Ceragem considers experience marketing as ethical marketing as the product
promotes wellness. The choice of this line of business aligned with his
is purchased by the customers only after its benefits are experienced
values.

Om muses that prior to his retirement he never envisaged that he could promote wellness and pain relief through
scientific massaging. His passion for public health and respect for scientific solutions brought out Ceragem as a
unique driver for him to pursue the broader good.
Om Wellness & Healing Centre: Deriving Satisfaction from Healing
Om Wellness & Healing Centre could secure good acceptance based on experience marketing with curative
experiences of patients leading to equipment purchases.

Almost 200 customers visit the Centre daily and benefit from the therapy. They are relieved of joint pains, low back pain, and
sciatica nerve pain apart from various other ailments, thereby making them feel healthy and happy.

Om takes lectures for half a day every day, informing and mentoring people about the importance of good health,
sharing various tips on how to remain healthy, and motivating them to take regular therapy.

Om’s avowed goal is to spread the message of good health, and promote Ceragem massaging for those who need it.
He is happier that he is making countless people more productive and energetic at work and in their life.

Although satisfied customers do purchase the Ceregam equipment from the Centre and thus help Om manage his
operational expenses, Om considers his project more as a social enterprise and less as a business entity.

He also feels happy that his enterprise has given direct employment to ten persons which is likely to increase with expansion
in future.

Having stabilised Om Wellness & Healing Centre successfully, Om has started working on establishing Arya's
Academy for Personality Development. Om says he is content with starting slowly and steadily with a fewer people
but with greater impact. Here again, Om has decided to place purpose ahead of business.
The Wellness Paradigm of Om Centre

Passion for Wellness

And
Happiness from Social Wellbeing

Coach customers
Develop the Wellness Platform – the
on wellness
‘spine’ as the centre of strength
parameters

Provide equipment
Provide experience Make practice a way purchase options to
of cure and wellness of wellness living continue the positive
experience at home
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Key Takeaways from Om Wellness & Healing Centre
Om Wellness and Healing Centre serves as a role model for retired persons to structure start-ups around their passion.
Om Centre offers guidance to professionals to move off the beaten track in their retirement based on certain principles.

Latent passion
drives post-
retirement
start-ups
Social A Start-up
enterprise platform gives
needs passion structure and
with social process to
purpose passion
Social
Experience
Marketing
Model
Subtle branding
Pay-for-itself
remains
partnership
necessary for
optimises costs
impact

Post-retirement
start-ups driven
by values and
ethics

Social start-ups with their linkage to quality of life provide a greater sense of purpose to retiree start-ups. OM Centre
teaches that retirement is a golden opportunity to share one’s wisdom and spread one’s passion with a larger
population for a meaningful return to the society. And in so doing, it explores a few hues of start-up passion.
A Generic Model in Processed Food Product Start-up
It is possible to make an entrepreneurial entry into consumption facing industries based on a judicious mix of in-house,
outsourcing and partnership strategies. Leveraging external talent and partner capacities, low-cost entry is feasible.

While a creative product niche is ideal, consumption market offers potential to offer emulative
products based on continuous expansion in consumption

Emulative products will require differentiation based on recipe or formula, cost advantage,
packaging, delivery, marketing, or otherwise

Clarity on the initial market (urban/rural and states) helps focused entry without
spreading oneself out too thinly

Cost-competitive manufacture based on quality facilities available in the industry helps one
keep the initial fixed costs, and hence production cost, low.

Unique naming and branding, differentiated packaging, focussed marketing, creative

promotion, and performance-linked incentives will secure strong beachhead in the market

Product novelty and product quality coupled with pricing attractiveness has been proven, time and again, to be the
success formula for entrepreneurial firms, more so in consumption-driven markets.
Processed Food Product Start-up: Key Competencies
The outlined start-up model is a near universal hypothesis of how entrepreneurs can succeed by being in step with the
growing consumption story of India, with a balanced strategic approach based on ‘creative emulation’ or ‘disruptive
innovation’ as the case may be.

Business plan must optimise internal and external resources consistent with modest resources

Product perfection with creative positioning leads to successful entry

Leadership, management and organisational bandwidth is critical to drive competitiveness

Robust marketing, selling and distribution arrangements ensure sustainable success

Calibrated increase in all operations, modifying internal-external balance as appropriate, is essential

Timely access to private equity and public capital to fund growth

A well-calibrated organisational strategy providing for state-of-the-art competencies, robust cultural anchors, agile
management team, and timely leadership transitions embeds and institutionalises entrepreneurial passion and energy
Strategic Framework of Success for a Food Product Start-up

 Recipe perfection by
nutritional science
 Pure-play fruit juice
 Mono-product start

Product
Strategy

 Initial outsourcing
 Public offer Financial Manufacturing  In-house plants
 Private equity Strategy Strategy  Progressive increase in in-house
 Personal and
Performance- manufacturing
family savings centric
Ethical
Corporate
Governance

 National marketing network

Organisation Marketing  Multi-state with addition of
Strategy Strategy more cities and towns
 Professionally  Rural and semi-urban in one
diversified state
 Family managed
 Founder managed

Implies move from the base level

strategy to higher level strategy

89
Key Takeaways from the Processed Food Product Start-up
Whether it is an entrepreneurial start-up or an established operation, certain competencies are core and central to
ensure a competitive and viable foundation for scalability and sustainability

Taste, looks, and shelf-life of

Science & the product through R&D
Technology

Ethics and compliance to assure Supply Procurement, In-house/

Governance
confidence to investors, public Chain outsourcing, and distribution

Key
Competencies
Model

Short and long term prudential In-house, outsourced, vendor,

norms, and sustainability Financing Quality distributor

Sales &
Promotion, storage, selling, Marketing
collection – digital and physical

Throughout this course, multiple real examples have been provided how entrepreneurial firms and start-ups can, and
should, establish themselves with certain essential key competencies, and work towards an optimum balance of scale,
scope and profitability, generating national wealth.
 NPTEL

COURSE ON ENTREPRENEURSHIP
Perspectives of Business Strategy and Economic Development

WEEK 12 – LECTURE 60 – Closing Part

Course Module 15B

In Closing

Prof. C Bhaktavatsala Rao, Ph.D.

Ajit Singhvi Chair Professor

Department of Management Studies

Indian Institute of Technology Madras
In Closing…
Over the last 12 weeks, covering 60 lectures, I had the privilege of sharing with you an extensive review of the
course “Entrepreneurship: Perspectives of Business Strategy and Economic Development”. We covered:

Multiple Concepts and

Numerous Case Examples
Constructs

Entrepreneurship

Insightful Interpretations Futuristic Prescriptions

Extensive discussions of Indian Context and Global Insights characterized the course throughout.
Themes of the 12 Weeks…

Week 12
Marketing
Week 11 Strategy and
15 Themes over 12 Case Studies

Weeks, covering Week 10 Entrepreneurship,

Employment, and
60 Topics Governance
Entrepreneurial Culture, Thermodynamics,
Week 9 and Human Resources

Week 8 Beyond Founders and Founder-Families

India as Start-up Nation

Week 7
Education and Entrepreneurship
Beyond Founders and Founder-Families

Week 6 Raising Finances and Developing Financial Strategy

Week 5 Technology, Business and Operations Strategies

Week 4 Technological Innovation and Entrepreneurship

Week 3 Commercialisation and Disruption as Success Drivers Multiple real-life

Week 2 examples and 12
Week 1 Ideation and Prototyping, and Testing and Validation start-up case
studies
Entrepreneurial Discovery and Ideation and Prototyping

Entrepreneurial Journey and Entrepreneurial Discovery

This NPTEL Course on Entrepreneurship…

Provided detailed overview of the multi-faceted domain of

entrepreneurship

Demonstrated the importance of entrepreneurship as the

foundation of industrial and business growth

Brought out several insights based on real-life case examples, and

practical applications of theory, in a multi-disciplinary approach

Provided multiple constructs for entrepreneurs to be successful, and

pathways for their companies to achieve sustainable growth
With the Successful Completion of the Course…

The participants will gain an expansive and deep

appreciation of entrepreneurship, and its pivotal
role in the economy

The participants are likely to be able to approach

entrepreneurship with clarity and focus, and an
understanding of the key success factors as well
as possible risks and mitigation strategies

A practising entrepreneur is likely to be able to

navigate the opportunities and challenges of
entrepreneurship more effectively, with the
several additional insights available
 From the Industrial and National Viewpoints…
The Course provided important business strategy perspectives for entrepreneurial firms to move
successfully from start-up to ramp-up, with sustainability. It also provided economic development
perspectives for India to emerge as global hub for start-up and entrepreneurship development.

Technological
Business Strategy
Innovation

National Economic
Competitiveness Development

Entrepreneurship is vital for India’s socio-economic development, and emergence as global economic power
Thank you!

97