The Tasty Bite Story

The Turnaround Story Contd...

PBI realized that the average American customer was not able to understand the products being offered and their Hindi language names did not make sense to the customers. The company thus decided to slash the product portfolio from 25 to 8 and retained only those products that were familiar to the American consumer.

Also, products were renamed in English for instant identification and easy understanding. Thus, 'Palak Paneer' became 'Kashmir Spinach,' 'Navratan Korma' became 'Jaipur Vegetables' and 'Alu Chole' became 'Bombay Potatoes,' and so on. The recipes were also modified to suit the western palate.

PBI also modified the packaging to suit customer requirements. Earlier, products were sold in pack sizes that ranged from 200 gms to 1 Kg.

This was replaced with a standard size of 300 gms, as unlike mainstream food in the US, Indian food was not consumed in large quantities. The smaller pack size motivated the consumers to give the products a try.

By August 2001, the pack size was changed to 285 gms (10 ounces) to bring it in line with American standards of measurement. This also meant that a store shelf now accommodated nine packs as compared to the seven earlier.

By 1998-99, TBEL began reaping the benefits of its turnaround efforts and recorded a net profit of Rs 4.7 million. By the end of 2000, its products were available in 27 US states through 33 leading natural food stores and mainstream supermarkets. By 2001, TBEL's profits increased nearly three fold to Rs 13.42 million (Refer Table I).

According to SPINS, an agency that tracked the market shares and consumer preferences of natural food brands in the US, TBEL was the largest brand in the category. Bombay Potatoes (Alu Chole) had become a common side dish for many Americans. TBEL's entry into Holland, Switzerland and UK was also showing positive results.

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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

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