NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
Marketing strategy for Ramalingam foods for International Business expansion
Submission Date & Time: 2021-11-25 10:46:26
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Aniket Badase
Assignment Taken
Develop a Marketing Strategy to tap into a fast expanding market.Case Understanding
The case talks about Ramalingam Foods- Mumbai based South Indian food restaurant established by Mr. Ramalingam Venkatesh in 1965. Initially, they were selling authentic south Indian food and filter coffee. However, in 1975, they began selling Idli-Dosa batter and chutneys due to an emergency imposed in India which required businesses to sell their products at a reduced price. In 1990, Ramalingam’s son wanted to expand his business. He developed an idea to sell powder mixes of Idli-Dosa batter and developed other product portfolios such as Instant & easy to make sweets and snack mixes (raging 200gms-1kg). Now they decided on the international market expansion considering growing demand in the middle east countries, Southeast Asia, and England. Their operating revenue is INR 152 crore for the FY ending on 31 March 2019. Their EBITDA has increased by 3.16% and book net worth has increased by 20%. With the help of our consultancy, Ramalingam Foods want to expand overseas within a budget allocation of INR 50 crore.BCS Solution Summary
Ramalingam Foods approached our consultancy for International Business expansion. Ramalingam Foods has a ready-to-cook product range that includes Idli-Dosa instant mix and other instant dessert mix and chutney powder. We suggested them to enter into the southeast Asian market, specifically in Malaysia, Singapore, and Indonesia with a huge Indian population. Ramalingam Foods has been recommended by our firm to launch with current products in this region, with product range expansion anticipated over the next two years. The solution talks about Ramalingam Foods' strategy for product innovation and diversification, value proposition, target market and positioning of the company, promotion, and advertisement of the products.Solution
Considering the following factors, we have decided to expand business in the Southeast Asia region (Malaysia, Indonesia, Thailand, Singapore)
- Free Trade Agreement between India and these Southeast Asian countries.
- These countries have a large proportion of Indians in their population.
- The major influence of Indian culture and ethnicity.
In Malaysia, as per the 2000 census, 1.84 million are Indians accounting for 7.9% of the country’s population and the country’s third-largest ethnic group. So we can start our expansion in Malaysia considering a large target market.
Marketing Objectives
- To enter the appropriate markets in order to increase the company’s international reach.
- To establish in the new market with considerable market share.
- Introducing new products as per the choices and preferences of the target market and marketing them to the target audience.
- Increase Brand awareness in the international market initially focusing on the Southeast Asian region.
Competitors Analysis
Major Competitors in South East Asia
|
MTR |
Operating in Malaysia, Singapore, Indonesia. |
Our main Competitor in the Southeast Asia region, which has a well-established network of Indian restaurants. They have a considerable market share and have placed their ready-to-cook food products on all major eCommerce websites. |
|
Kawan Foods |
Malaysia |
Leading player in the Malaysian food industry |
|
PK Agro-Industrial Products |
Malaysia |
The company is launching a number of ready-to-eat products tailored to local preferences. |
|
7-ELEVEN |
Singapore |
Leading player in Singapore food industry |
|
PT Sekar Bumi Tbk Indonesia |
Indonesia |
Leading player in the Indonesian food industry with a 24% market share. |
|
Local shops and food vendors |
Operating in the Southeast Asian region |
A large influence on the Southeast Asian food industry. |
Marketing Mix
- Products: Flagship products of Ramalingam Foods that is Instant Idli Mix, Instant Dosa Mix, etc. and North Indian dishes Instant Mix, Dessert Mixes, Chutney Powder, South Indian Instant Mix, Instant Coffee Mix are available in 200gms, 500gms, 1kg packaging.
In addition to this company should add some local flavors in its product as per the taste and choices of the target market.
Instead of standardizing its products, we will focus on distribution and quality control requirements by keeping customers first. This can be done through customization as and when needed.
- Pricing: As in the Indian market, Pricing is a very important factor in the Southeast Asian market.
Customer is said to be remarkably price-conscious, especially for the food industry.
We will offer products at affordable prices in the range of INR 80 to 400 depending on the quantity structure. (Equivalent in the target market’s currency).
To gain significant market share we will be focusing on a Penetration pricing strategy.
- Place: Cities in Southeast Asia with large Indian population density will be targeted.
Offering products at different platforms such as supermarkets, retail stores, local shops, restaurants and eCommerce websites, etc.
- Promotion: To be on top of the customer’s mind and to intensify competition by the strong brand recall, we will use the following promotional strategies.
- To enhance the visibility of Ramalingam’s brand among the target market we will design Posters, Hoardings, and brochures.
- Publishing in local Newspapers and Magazines.
- Through Television ads and commercials.
- Intensive Social media marketing and search engine marketing,
- Offers on special occasions.
- Branding thorough packaging.
- Associating with the local events which attract most of the target audience.
- Through the activities of the country’s Indian community clubs.
Product and Pricing Breakdown for major countries in Southeast Asia
Conversion of Indian currency to foreign currencies:
- 1 INR = 0.057 Malaysian Ringgit
- 1 INR = 0.018 Singapore Dollar
- 1 INR = 191.77 Indonesian Rupiah
|
Product categories |
Quantity (in gms) |
Price (INR) |
Price (Malaysian Ringgit) |
Price (Singapore Dollar) |
Price (Indonesian Rupiah) |
|
North Indian dishes Instant Mix |
200 |
89 |
5.05 |
1.63 |
17067.87 |
|
North Indian dishes Instant Mix |
500 |
199 |
11.30 |
3.65 |
38162.99 |
|
North Indian dishes Instant Mix |
1000 |
389 |
22.08 |
7.14 |
74600.02 |
|
Dessert Mixes |
200 |
110 |
6.24 |
2.02 |
21095.12 |
|
Dessert Mixes |
500 |
249 |
14.13 |
4.57 |
47751.69 |
|
Dessert Mixes |
1000 |
499 |
28.32 |
9.16 |
95695.14 |
|
Chutney Powder |
200 |
75 |
4.26 |
1.38 |
14383.04 |
|
Chutney Powder |
500 |
199 |
11.30 |
3.65 |
38162.99 |
|
Chutney Powder |
1000 |
329 |
18.67 |
6.04 |
63093.59 |
|
South Indian Instant Mix |
200 |
89 |
5.05 |
1.63 |
17067.87 |
|
South Indian Instant Mix |
500 |
199 |
11.30 |
3.65 |
38162.99 |
|
South Indian Instant Mix |
1000 |
389 |
22.08 |
7.14 |
74600.02 |
|
Instant Coffee Mix |
200 |
149 |
8.46 |
2.74 |
28574.30 |
The above values are approximate values based on the Indian prices. This may change based on the shipping charges.
STP for Ramalingam Foods
Segmentation:
- Demographic factors:
- Age: 9 to 70 years old, Millenials.
- Gender: Male, Female, and others.
- Income: Lower middle class to Upper-class households
- Ethnicity: Indian
- Geographic factors:
- Region: Southeast Asia
- Nations: Mainly Malaysia, Singapore, and Indonesia
- Psychographic factors:
- Interest and Lifestyle: Indian Food, healthy food.
Targeting:
Our target market will be-
Millennials/ Gen Y (25 to 40 years).
Target group: Indians living in these countries, NRIs, local customers, tourists, etc.
Income: Lower middle class to Upper-class households
Indian food lovers, healthy and nutritious food lovers.
Major Southeast Asian cities with an Indian population:
- Malaysian Cities: Negeri Sembilan, Penang, Kuala Lumpur, Perak, Kedah and Johor, Penang, Selangor, etc.
- Singaporean cities: Little India, Serangoon, Dhoby Ghaut etc.
- Indonesian cities: North Sumatra, Surabaya, Medan, Jakarta and Banda Aceh.
Positioning: we will be positioning Ramalingam Foods as “A quality brand producing healthy and nutritious products, with best combination of Indian authenticity and local taste, providing ready-to-cook and easy-to-make food products.
Tagline: “The flavor of tradition and happiness”
Marketing Strategy
Entry-level strategy: Estimated target population is 24.27 billion mainly consisting of NRIs and Indian tourists in Malaysia, Singapore, and Indonesia. As business consultants, we will help Ramalingam Foods to overcome traditional difficulties that are faced by a company while expanding into new territory by doing proper market research, consumer behavior, and distribution strategy.
Distribution Strategy: Distribution strategy is the method used to bring products, goods, and services to customers or end-users. Following strategies will be followed by the company;
- Inbound links, social media efforts, and blogs will drive visitors to the companies website, it will be a big source of revenue. Customers wishing to make purchases will be led from our site to Amazon’s website, with which we will have a partnership and where they will be able to purchase our products.
- Offering our products on local eCommerce platforms such as Shopee, Lazada, Redtick, Mygroser, and MyDin.
- Supermarkets and retail outlets with a large footfall of people would be used to generate retail sales.
- In addition, ties-ups with local stores and merchants would be made to advertise our items and provide the firm a front-row presence.
Advertise and Promotion:
The budget allocated by the finance department for marketing activities is INR 5 crore. We will run the following campaigns by adhering to the budget allocated by the finance department.
- Google Advertisements
- Social Media Advertisements
- Television Advertisements
- Email marketing
- Search engine marketing
- Posters, Hoardings, and brochures.
- Branding and Packaging
- By organizing promotional events
- Referrals and coupons
- Free gifts and goodies
Conclusion
We developed a marketing strategy for Ramalingam foods to assist the company's aim to expand into other fast-growing markets. Finding the proper supply chain partner and marketing the goods to the target audience. Being a new entrant in the foreign market, maintaining a high level of consumer satisfaction is important. Suggested plan and strategy would definitely help Ramalingam Foods to enter and sustain itself in the Southeast Asian food market.Attached File Details
Video
https://youtu.be/gaxlT_B5SA0Comments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management
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