FoodWorld: Pioneering Organized Food Retailing in India|Business Strategy|Case Study|Case Studies

FoodWorld: Pioneering Organized Food Retailing in India

            
 
Case Studies in Business, Management Cases | Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR051
Case Length : 14 Pages
Period : 1990 - 2003
Organization : RPG Group
Pub Date : 2003
Teaching Note :Not Available
Countries : India
Industry : Food Retailing

To download FoodWorld: Pioneering Organized Food Retailing in India case study (Case Code: BSTR051) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here



Price:

For delivery in electronic format: Rs. 300 ;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

Business Strategy Case Studies
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

"As India opened up post-1990, the availability of products increased dramatically. Indians and Indian families were exposed to new products and tastes, as they started traveling more and processed food started becoming a larger part of the monthly household purchase. We clearly saw an opportunity in retailing. One has to understand that the size of the grocery market in India is huge. A rough estimate would give us something like Rs 4 trillion ." 1

"We are clearly the market makers. We have created an industry, along with huge employment opportunities for a lot of people."

- Raghu Pillai, CEO, RPG-Retail.

Introduction

In July 2001, along with renowned jam brands such as Kissan and Sil, a new brand was prominently being displayed on the shelves of India's leading food retailer, FoodWorld (FW), owned by the R P Goenka (RPG) group of companies.

The jam was sold under the brand name 'FoodWorld' and was priced much lower than the other brands. Within a month of their launch, FoodWorld jams accounted for 17% of FW's sales in that category. This development marked one of the first major instances of the conflict between 'private store brands' and 'FMCG company brands' in India. While the phenomenon was rather common in countries such as the US and the UK, FW became the first retailing chain to challenge the might of leading FMCG companies in the country. Beginning with jam, honey, phenyl and herbal sanitizers, FW soon extended its branding initiatives to other products as well. These products could be placed under three main categories - commodities, processed food items, and non-food items.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

FW had launched (or intended to launch) products like dry groceries, toilet cleaners, beverages, dish washing powders, detergents, powder, ketchup, sauces, tea, coffee, bakery products, breakfast cereals, shampoos and many more items in the future under the FW brand. While private brands offered the benefit of higher margins, they also brought with them the burden of brand management, something in which FW did not have to invest in, while selling products manufactured by other companies.

Considering the impact of this move on the confidence of other manufacturers, analysts felt that leading manufacturers might suspect that FW was promoting its own brands at the cost of their brands. However, FW officials stressed that all the products it launched were in segments where there were gaps in its product portfolio, either in terms of price, supply or quality. These developments highlighted the fact that in the early 21st century, organized food retailing in India was catching up with other Western countries. The 'posh' shopping experience associated with FW outlets was far more appealing than the small, unappealing stores at which Indian households shopped for since decades. How FW became the first venture to successfully cover many parts of the country is essentially a story of good timing, business insight and strong strategic support from the promoters.

FoodWorld: Pioneering Organized Food Retailing in India - Next Page>>


Custom Search





Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

1] In February 2003, Rs 48 equaled 1 US $.

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Workbooks, Case Study Volumes.