Aiming for the 'Aha' Effect

7/29/2019 Aiming for the 'Aha' Effect

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CASE ANALYSIS


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case aboutAkbar 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

Look for a Made for India strategy to:

Create anAha Effect


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5-FORCES MODEL

Rivalry: Large Indian companies (growing from SMEs)

MNCs Indianized

New entrants:

New MNCs SMEs

Substitutes: Unorganized sector

Buyers: Huge market at the bottom of the pyramid:

o Growing rural market

o Small towns

Suppliers


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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, Bedekar


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Problems

MNCs and large Indian companies not looking at thisprospect

Risk averse

Merely looking at adapting existing products

Not willing to take the effort to understand theconsumer

Inadequate Marketing Research techniques to

understand consumers

Resistance of consumers to change their mindset tolearn how to adopt new kitchen appliances

No serious attempt to develop appropriate technologies


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Issues Offer Indian consumers something to create an Aha

effect, with:

Made for India strategy

Or

Continue with their existing strategy, and offer theirforeign products


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OPPORTUNITIES & THREATSWeights Ratings Weighted score

Opportunities

Large nos. (B.O.P.) .20 4 0.8

Few brands .10 4 0.4

Low penetration

of existing ones .10 3 0.3

Rising incomes .05 3 0.15

ThreatsLow purchasing power .15 3 0.45

Time no constraint .10 2 0.20

Competition .10 3 0.30

SMEs .05 3 0.15Lack of infrastructure .05 2 0.10

Consumer mindset .05 2 0.10

Local substitutes .05 2 0.10

1.00 3.05


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STRENGTHS & WEAKNESSESWeight Rating Score

Strengths

Global brands (V, I) .15 4 0.6

Huge resources (O) .15 4 0.6

Professionalism (O) .10 4 0.40

Wide experience (O) .05 3 0.15Weaknesses

Mindset of MNCs .15 2 0.30

Inappropriate MR .15 2 0.30

Think Small .10 3 0.30New entrant .05 3 0.15

Products undecided .05 3 0.15

Entry strategy undecided .05 3 0.15

1.00 3.10


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STRATEGIC FACTOR ANALYSIS SUMMARY

Weight Rating Score (O) Large nos. (BOP) .15 4 0.60 (O) Few brands .10 4 0.40 (O) Low penetration .05 3 0.15 (T) Low purchasing power.10 3 0.30 (T) No time constraint .05 2 0.10

(T) Competition .05 3 0.15 (T) SMEs .05 3 0.15 (T) Lack of infrastructure .05 2 0.10 (S) Global brands .10 4 0.40 (S) Huge resources .10 4 0.40 (S) Professionalism .05 3 0.15 (W) Mindset of MNCs .10 2 0.20 (W) Inappropriate MR .05 2 0.10 (W) think Small .05 3 0.15

1.00 3.35


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SW

OT

Large numbers of (BOP)Few brandsLow penetration of

existing ones

Low purchasing powerTime not a constraint

CompetitionSMEsLack of infrastructureMindset of consumer


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SW

OT

Global brandsHuge resourcesprofessionalism

Mindset of MNCsInappropriate MRThinksmall

Large numbers of (BOP)Few brandsLow penetration of existingones

Low purchasing powerTime not a constraintCompetitionSMEsLack of infrastructureMindset of consumer


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SW

OT



Large numbers of (BOP)Few brandsLow penetration ofexisting ones

NPDEducate consumersDiscover unmet needs



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SW

OT



Large numbers of (BOP)Few brandsLow penetration ofexisting ones


MR techniquesEntrepreneurialapproachMNC mindset

Low purchasing power

Time not a constraintCompetitionSMEsLack of infrastructureMindset of consumer


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SW

OT



Large numbers of (BOP)Few brandsLow penetration of

existing ones


MR TechniquesEnterprneurial approachMNC mindset


Offer valuePPPUse unconventionalmedia


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SW

OT



Large numbers of (BOP)Few brands

Low penetration ofexisting ones

NPDEducate consumers

Discover unmet needs

NPDEducate consumers

Discover unmet needs

Low purchasing power

Time not a constraintCompetitionSMEsLack of infrastructureMindset of consumer

Offer value

PPPUse unconventionalmedia

Start from rural

Educate


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Tomaikis strengths Global brands

Resources:

Capital R&D

Professional competence:

Experience in other markets

NPD competence


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Implications Risk taking ability

Backed by:

Resources Knowledge

Innovative skills

Experience across markets


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SO Capitalize on the huge potential at the Bottom of the

pyramid thru NPD

Educate consumers to use existing cooking devices &products


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MARKETS

OPPORTUNITIES

Small towns Rural

Extending usage ofcooking products/devices

Demo & education toencourage:

- usage of moderncooking appliances- adapting recipes- ingredients for cooking

Demo & education toadapt existing

products/devices

New productdevelopment

New recipeDeveloping RTCsIngredients for cooking

Innovation:- appropriate technology- products


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Research on food habits 1971 & 1981 Mrs. Goodyear, BMRB research

1984 Gallop-MBA research on processed food


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Findings MBA-GallopMothers pestered by their children, seeking:

1) Taste

2) Variety3) Convenience

4) Creativity


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Success Stories Maggi noodles, Fryums

MDH, Everest masalas, pastes

Not ready-to-eat foods, which even today has very littleacceptance


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1990s to date successes Haldirams Namkeens

Kurkure

Bingo


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Rise of small towns in India2000 Ernst & Youngs report:

Significant consumption expenditure of *KUT vis--vis the Metros

Increasing affluence levels with a larger relevantconsumer base

Increasing reach of retail & malls

Increasing reach of media & favourable mediaconsumption patterns

*Key urban towns


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Tomaikis SCAs Pre-emptive move

Differentiation

Building brand Resonance

Aiming for the 'Aha' Effect

Documents