AIMING FOR THE 'AHA EFFECT'

CASE STUDY

CASE ABOUT
Akbar Iqbals terms for joining as country head of Tomaiki Foods: Look at India as an opportunity to grow a category Look at the bottom of the pyramid Not transfer products from its existing portfolio Create an AHA effect

 Rivalry : New entrants

New MNCs SMEs

5-FORCES MODEL

Large Indian companies (growing from SMEs) MNCs Indianised

Substitutes
Unorganized sector

Buyers
Huge market at the Bottom of the pyramid Growing rural market Smaller towns

suppliers

SYMPTOMS, PROBLEMS, ISSUES?

Symptoms:
Success stories abound:
Sauces market growth post Nestles entry Rasna Haldiram Papads Lijjat Potato chips Uncle Chipps Masalas MDH, Everest Pastes Pickles Nirlon, Badekar, Priya

PROBLEMS?
MNCs & large Indian companies not looking at the prospects Risk averse Merely looking at adapting existing products Not taking the effort to understand the consumer Inadequate Marketing Research techniques to understand the consumer Consumer resistance to change to learn how to adopt new kitchen appliances No serious attempts to develop appropriate technologies

ISSUES?
Offer Indian consumers something to create an AHA effect Made for India strategy

OT
SW OT

LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE

TOWS
SW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL

LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES

LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE

SO
SW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL

LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES

NPD Educate consumers Discover unmet need

LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE

OW
SW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL

LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES

NPD Educate consumers Discover unmet need

MR TECHNIQUES ENTREPRENEURIAL APPROACH MNC MINDSET

LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE

ST
SW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL

LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES

NPD Educate consumers Discover unmet need

MR TECHNIQUES ENTREPRENEURIAL APPROACH MNC MINDSET

LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE

OFFER VALUE PPP USE UNCONVENTIONAL MEDIA

WT
SW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL

LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES

NPD Educate consumers Discover unmet need

MR TECHNIQUES ENTREPRENEURIAL APPROACH MNC MINDSET

LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE

OFFER VALUE PPP USE UNCONVENTIONAL MEDIA

START FROM RURAL EDUCATE

TOMAIKIS STRENGTH
Global brands Resources:
Capital R&D

Professional competence:
Experience in other markets NPD competence

IMPLICATIONS
Risk taking ability Backed by:
Resources Knowledge Innovative skills Experience across markets

SO
Capitalize on the huge potential at the Bottom of the Pyramid thru NPD Educate consumers to use existing cooking devices & products

THUS
Markets Small towns Rural Opportunities

Extending usage of cooking products/devices

Demo & education to encourage -Usage of modern cooking appliances -Adapting recipes --ingredients for cooking New recipes Developing RTCs Ingredients for cooking

Demo & education to adapt existing products/services

New product development

Innovations: - appropriate technology - products

RESEARCH ON FOOD HABITS

1971 & 1981 Mrs. Goodyear, BMRB research 1984 MBA-Gallop research on processed foods

FINDINGS: GALLOP
Mothers pestered by their children seeking: 1. Taste 2. Variety 3. Convenience 4. Creativity

SUCCESS STORIES
Maggi noodles, Fryums MDH, Everest masalas, pastes

Not ready to eat foods, which even today has very little acceptance

1990s TO DATE SUCCESSES

Haldirams namkeens Kurkure Bingo

RISE OF SMALL TOWNS IN INDIA

2008 of Ernst & is report Significant consumptions expenditure of KUT* vis--vis the metros Increasing affluence levels with a larger relevant consumer base Increasing reach of retail & malls Increasing reach of media & favourable media consumption patterns *key urban towns

TOMAIKIS SCAs
Pre-emptive move Differentiation Building brand Resonance

TOMAIKI INDIA STRATEGY IMPLEMENTATION

CEO Organization Staffing Evaluation & control

TOMAIKI INDIA CEO CHARACTERISTICS

Characteristics will be the that of a diversification manager CEO should also have the characteristics of going to Stage II, which is managing functional along with entrepreneurial organization

ORGANIZATION
New people will have to be recruited Structure will initially be entrepreneurial But we will have to plan for a quick transition to Stage II organization structure, moment the first product gets launched

STAFFING
Initially we need a strong conceptual task force When product is identified & company is in a position to launch, we need to go in for a functional structure, hence manpower has to suit the requirement of:
Functional organization Skunk works for NPD

EVALUATION & CONTROL

Evaluation systems have to put in place to evaluate performance of new products