Foodkraft international limited case study

FOODKRAFT INTERNATIONAL

LIMITED

US based food company with a worldwide sales

exceeding 34 billion USD in 2000

Product ranges from cheese and other dairy product

counting 25% of total world revenue.

Circumstances which made them to

enter into Indian market…

Removal of quantitative restriction on import of

food products and customers duties were lowered

quite substantially.

What made India a potential growth

market…??

In the time period of 1999-2000

i. imported fruit juice worth 20 crores

ii. Imported chocolates and confectionary import

worth 26 crores

iii. Imported milk products worth 100 crores

Realised that there was tremendous potential for the ethnic

Indian product, ghee.

ISSUES TO ANALYSE

• What kind of food ghee was ?

• Was it a search good, experience good or credence good ?

• Did the ghee brands confirm to the regulatory standard?

• Which brands were the better one in terms of analytical and

sensory attributes ?

• How can he classify the ghee quality according to the

dimension laid down by the Garvin?

• How would Foodkraft offer a new ghee brand in the Indian

market which offer attributes which are important to the

customers ?

• Did corporate ghee brands earned a premium over the co-

operative ghee brands and the loose samples. ?

QUALITY ANALYSIS OF GHEE OF EXISTING

BRANDS

Analytical Parameters of Quality

Total fat

Moisture

Free Fatty Acids

Peroxide Value

DDT

Copper

QUALITY STANDARDS OF GHEE

S.NO Food StandardsCopper(max ppm)

Total Fat(min %)

Moisture(max %)

Free fatty acids (max %)

Peroxide value(max Meq/kg) DDT(max ppm)

1 Codex 0.05 99.3 0.5 X X 1.25

2 PFA 30 - 0.5 3 X 1.25

3 IS - 99.5 0.5 0.3 0.8 X

4 Agmark - - 0.3 3 X X

REGULATORY STANDARD VERSUS ACTUAL

INDUSTRIAL NORMS

0

5

10

15

20

25

30

COPPER

CODEX(max ppm)

PFA(max ppm)

COPPER CODEX(max ppm) PFA(max ppm)

Everyday X 0.05 30

Milkman X 0.05 30

Sagar X 0.05 30

Verka 0.5 0.05 30

Gits 0.3 0.05 30

Amul 1.1 0.05 30

Nova 0.1 0.05 30

Farm Fresh 0.5 0.05 30

Anik 0.2 0.05 30

Nandini 0.2 0.05 30

Gayatri 0.4 0.05 30

RKG 2.1 0.05 30

Vraj Gopi 5.7 0.05 30

Goa Dairy 0 0.05 30

Devi 0.7 0.05 30

LG1 X 0.05 30

LG2 X 0.05 30

97.5

98

98.5

99

99.5

100

Total Fat Content

CODEX(min %)

IS(min %)

Total Fat Content CODEX(min %) IS(min %)

Everyday 99.6 99.3 99.5

Milkman 99.5 99.3 99.5

Sagar 99.7 99.3 99.5

Verka 99.6 99.3 99.5

Gits 99.8 99.3 99.5

Amul 99.6 99.3 99.5

Nova 99.7 99.3 99.5

Farm Fresh 99.7 99.3 99.5

Anik 99.5 99.3 99.5

Nandini 99.6 99.3 99.5

Gayatri 99.5 99.3 99.5

RKG 99.7 99.3 99.5

Vraj Gopi 99.6 99.3 99.5

Goa Dairy 99.5 99.3 99.5

Devi 99.5 99.3 99.5

LG1 98.7 99.3 99.5

LG2 98.3 99.3 99.5

0

0.1

0.2

0.3

0.4

0.5

0.6

MOISTURE CONTENT

CODEX(max %)

PFA(max %)

IS(max %)

AGMARK(max %)

MOISTURE CONTENT CODEX(max %) PFA(max %) IS(max %) AGMARK(max %)

Everyday 0.1 0.5 0.5 0.5 0.3

Milkman 0.1 0.5 0.5 0.5 0.3

Sagar 0.1 0.5 0.5 0.5 0.3

Verka 0.1 0.5 0.5 0.5 0.3

Gits 0.1 0.5 0.5 0.5 0.3

Amul 0.1 0.5 0.5 0.5 0.3

Nova 0.3 0.5 0.5 0.5 0.3

Farm Fresh 0.3 0.5 0.5 0.5 0.3

Anik 0.2 0.5 0.5 0.5 0.3

Nandini 0.1 0.5 0.5 0.5 0.3

Gayatri 0.1 0.5 0.5 0.5 0.3

RKG 0.2 0.5 0.5 0.5 0.3

Vraj Gopi 0.1 0.5 0.5 0.5 0.3

Goa Dairy 0.3 0.5 0.5 0.5 0.3

Devi 0.3 0.5 0.5 0.5 0.3

LG1 0.1 0.5 0.5 0.5 0.3

LG2 0.1 0.5 0.5 0.5 0.3

0

0.5

1

1.5

2

2.5

3

3.5

FREE FATTY ACIDSCONTENT

PFA(max %)

IS(max %)

AGMARK(max %)

FREE FATTY ACIDS CONTENT PFA(max %) IS(max %)

AGMARK(max %)

Everyday 0.1 3 0.3 3

Milkman 0.3 3 0.3 3

Sagar 0.2 3 0.3 3

Verka 0.3 3 0.3 3

Gits 0.4 3 0.3 3

Amul 0.2 3 0.3 3

Nova 0.3 3 0.3 3

Farm Fresh 0.2 3 0.3 3

Anik 0.6 3 0.3 3

Nandini 0.3 3 0.3 3

Gayatri 0.4 3 0.3 3

RKG 0.7 3 0.3 3

Vraj Gopi 0.3 3 0.3 3

Goa Dairy 0.3 3 0.3 3

Devi 1 3 0.3 3

LG1 0.2 3 0.3 3

LG2 0.5 3 0.3 3

0

0.5

1

1.5

2

2.5

3

3.5

PEROXIDE VALUE CONTENT

IS( max Meq/kg)

PEROXIDE VALUE CONTENT IS( max)

Everyday 0.63 0.8

Milkman 0.3 0.8

Sagar 1.2 0.8

Verka 1.5 0.8

Gits 1.3 0.8

Amul 0.98 0.8

Nova 0.8 0.8

Farm Fresh 1.6 0.8

Anik 0.4 0.8

Nandini 1.3 0.8

Gayatri 2.1 0.8

RKG 1.1 0.8

Vraj Gopi 1.8 0.8

Goa Dairy 0.7 0.8

Devi 0.9 0.8

LG1 2.9 0.8

LG2 2.4 0.8

0

0.2

0.4

0.6

0.8

1

1.2

1.4

DDT CONTENT

CODEX(max ppm)

PFA(max ppm)

DDT CONTENT CODEX(max ppm) PFA(max ppm)

Everyday 0.2 1.25 1.25

Milkman 0.2 1.25 1.25

Sagar 0.3 1.25 1.25

Verka 0.4 1.25 1.25

Gits 0.2 1.25 1.25

Amul 0.3 1.25 1.25

Nova 0.2 1.25 1.25

Farm Fresh 0.6 1.25 1.25

Anik 0.8 1.25 1.25

Nandini 0.2 1.25 1.25

Gayatri 0.3 1.25 1.25

RKG 0.3 1.25 1.25

Vraj Gopi 0 1.25 1.25

Goa Dairy 0.1 1.25 1.25

Devi 0.5 1.25 1.25

LG1 1 1.25 1.25

LG2 0.2 1.25 1.25

RESULT OF ANALYTICAL STUDY

GOA DAIRY IDENTIFIED TO BE FOLLOWING ALL STANDARDS

SINCE PUBLIC HEALTH IS MOST IMPORTANT FOODKRAFT HAS COME

TO A CONCLUSION TO FOLLOW ALL STANDARDS

Copper(max ppm) Total Fat(min %) Moisture(max %) Free fatty acids (max %)Peroxide value(max Meq/kg) DDT(max ppm)

0.05 99.5 0.3 0.3 0.8 1.25

BRAND FLAVOUR TEXTURE COLOUR

Everyday 9.6 7.77 9.8

milkman 9.2 7.8 9.8

Sagar 9.6 7.63 9.1

Verka 9.6 7.83 9.4

Gits 9.4 7.83 7.5

Amul 9.4 7.5 9.5

Nova 9.4 7.6 10

Farm fresh 9.8 7.97 10

Anik 9.2 7.77 10

Nandini 9.6 7.77 8.3

Gayathri 8.8 7.8 10

RKG 9 7.8 7.5

Vraj Gopi 8.8 7.83 8.7

Devi 7 7.8 5

LG1 9.4 7.77 9.8

Goa Dairy 9.4 7.83 9.5

Sensory Scores Data for Ghee

The best brands from the sensory scores

data are-

• FARM FRESH

• EVERYDAY

• GOA DAIRY

CONCLUSION

What are the results of the survey?

How can FOODKRAFT can beat the competition and make it’s product unique?

Who are the main competitors?

Importance of both analytical and sensory attributes.

What should be the pricing and quality standards and how much the company

needs to compromise on it.?

Should launch and market the product based on conformance with regulatory standards.

To make proper packing of product and to price it effectively.

To also give importance to flavour,texture and colour without deviating from regulatory standards.

Should implement plans to create consumer awareness about the quality of the products in the market.

Competition from co-operatives is comparatively more compared to corporate ghee brands.Goa diary poses the greatest competition.Farm feed,Everyday also have good sensory scores.

SUGGESTED PRICING AND

VALUES COPPER

(MAX PPM)

TOTAL FAT

(MIN %)

MOISTURE

(MAX %)

FREE FATTY

ACIDS(MAX

%)

PEROXIDE

VALUE(MEQ

KG)

DDT

(MAX PPM)

0.05 99.5 0.3 0.3 0.8 1.25

Suggested price range for the product is between 65-75 as there is great number

of middle class consumers.

THANK YOU