The Tasty Bite Story

Future Plans

In September 2000, TBEL began working towards repeating its export market success in the domestic market. TBEL divided the Indian market into two broad segments: the domestic segment focussing on working women, and the institutional segment comprising fast food restaurants, hotel chains, airline flight kitchens and the Indian Army and Navy. Nigam said, "Although Tasty Bite is the No. 1 selling Indian food brand in the US, the task in India is daunting.

The challenge, therefore, is to first establish the category and then associate it with the brand." TBEL was optimistic that its earlier dismal performance in the domestic market would not be repeated.

A national study on the food and grocery sector GROFAST (Grocery and Food Advantage Study), conducted by KSA Technopak, showed that 73% of Indian consumers preferred to have traditional Indian meals in the RTS format rather than western food.

This attitude was mainly attributed to the shift in the preferences of consumers and readiness of Indian consumers to experiment with food.

A TBEL source remarked, "In India there is a paradigm shift among women. The Indian woman is no longer just a housewife, but is more the manager of the household. Also, the working woman is not guilty about eating outside food at home. Tasty Bite products, therefore, are designed to collaborate and not compete with the new Indian woman." TBEL management felt that the Indian market had become mature enough to appreciate the convenience and value of RTS foods. TBEL launched its products in Pune, Mumbai, Bangalore, Chennai and Hyderabad without much advertisement and promotion support.

Encouraged by the good sales reports, TBEL decided to launch the products nationally by the end of 2001. The company also decided to spend 40% of its domestic revenues to launch a billion brand-building campaign during 2001-02. TBEL also started conducting research for launching RTS sweets and non-vegetarian food. By 2001, HLL, Dabur Foods, MTR and Amul had also entered the Rs 10 billion Indian RTS food market. TBEL planned to increase its turnover to Rs 1 billion by 2003. The company seemed to be working hard to fulfil Kilachand's vision of becoming 'the most respected food company in India.'

Case Details

Case Code : MKTG015
Themes: Turnaround Strategy
Case Length : 6 Pages
Period : 1986-2001
Organization : Tasty Bite Eatables Ltd, HLL
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Food, Beverages & Tobacco

Free Case Studies

Business Strategy
Finance
HRM
Insurance
IT and Systems
Marketing
Operations
Leadership
More Case Studies >>

Micro Case Studies

Business Environment
Business Ethics
Business Strategy
Human Resource Management
IT and Systems
Marketing
Operations
Micro Case Studies >>

Free Resources

Micro Case Studies
Free Case Studies
Articles
Interviews
Book Reviews
Glossary
Online Quiz
More Free Resources >>

Case Related Links

Best Selling Case Studies
Business Case Studies
Learning With Case Studies
Cases Used in Textbooks
Prize Winning Case Studies
More Case Studies >>

Case Studies and Management Resources