AHA Effect

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    28-Apr-2015

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AHA Effect

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<p>AIMING FOR THE 'AHA EFFECT'CASE STUDY</p> <p>CASE ABOUTAkbar Iqbals terms for joining as country head of Tomaiki Foods: Look at India as an opportunity to grow a category Look at the bottom of the pyramid Not transfer products from its existing portfolio Create an AHA effect</p> <p> Rivalry : New entrantsNew MNCs SMEs</p> <p>5-FORCES MODEL</p> <p>Large Indian companies (growing from SMEs) MNCs Indianised</p> <p> SubstitutesUnorganized sector</p> <p> BuyersHuge market at the Bottom of the pyramid Growing rural market Smaller towns</p> <p> suppliers</p> <p>SYMPTOMS, PROBLEMS, ISSUES? Symptoms: Success stories abound: Sauces market growth post Nestles entry Rasna Haldiram Papads Lijjat Potato chips Uncle Chipps Masalas MDH, Everest Pastes Pickles Nirlon, Badekar, Priya</p> <p>PROBLEMS? MNCs &amp; large Indian companies not looking at the prospects Risk averse Merely looking at adapting existing products Not taking the effort to understand the consumer Inadequate Marketing Research techniques to understand the consumer Consumer resistance to change to learn how to adopt new kitchen appliances No serious attempts to develop appropriate technologies</p> <p>ISSUES? Offer Indian consumers something to create an AHA effect Made for India strategy</p> <p>OTSW OT</p> <p>LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE</p> <p>TOWSSW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL</p> <p>LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES</p> <p>LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE</p> <p>SOSW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL</p> <p>LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES</p> <p>NPD Educate consumers Discover unmet need</p> <p>LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE</p> <p>OWSW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL</p> <p>LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES</p> <p>NPD Educate consumers Discover unmet need</p> <p>MR TECHNIQUES ENTREPRENEURIAL APPROACH MNC MINDSET</p> <p>LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE</p> <p>STSW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL</p> <p>LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES</p> <p>NPD Educate consumers Discover unmet need</p> <p>MR TECHNIQUES ENTREPRENEURIAL APPROACH MNC MINDSET</p> <p>LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE</p> <p>OFFER VALUE PPP USE UNCONVENTIONAL MEDIA</p> <p>WTSW OT GLOBAL BRANDS HUGE RESOURCES PROFESSIONALISM MINDSET OF MNCs INAPPROPRIATE MR THINK SMALL</p> <p>LAGS NOS. (B.O.P.) FEW BRANDS LOW PENETRATION OF EXISTING ONES</p> <p>NPD Educate consumers Discover unmet need</p> <p>MR TECHNIQUES ENTREPRENEURIAL APPROACH MNC MINDSET</p> <p>LOW PURCHASING POWER TIME NO CONSTRAINT COMPETITION SMEs LACK OF INFRASTRUCTURE</p> <p>OFFER VALUE PPP USE UNCONVENTIONAL MEDIA</p> <p>START FROM RURAL EDUCATE</p> <p>TOMAIKIS STRENGTH Global brands Resources: Capital R&amp;D</p> <p> Professional competence: Experience in other markets NPD competence</p> <p>IMPLICATIONS Risk taking ability Backed by: Resources Knowledge Innovative skills Experience across markets</p> <p>SO Capitalize on the huge potential at the Bottom of the Pyramid thru NPD Educate consumers to use existing cooking devices &amp; products</p> <p>THUSMarkets Small towns Rural Opportunities</p> <p>Extending usage of cooking products/devices</p> <p>Demo &amp; education to encourage -Usage of modern cooking appliances -Adapting recipes --ingredients for cooking New recipes Developing RTCs Ingredients for cooking</p> <p>Demo &amp; education to adapt existing products/services</p> <p>New product development</p> <p>Innovations: - appropriate technology - products</p> <p>RESEARCH ON FOOD HABITS 1971 &amp; 1981 Mrs. Goodyear, BMRB research 1984 MBA-Gallop research on processed foods</p> <p>FINDINGS: GALLOPMothers pestered by their children seeking: 1. Taste 2. Variety 3. Convenience 4. Creativity</p> <p>SUCCESS STORIES Maggi noodles, Fryums MDH, Everest masalas, pastes</p> <p> Not ready to eat foods, which even today has very little acceptance</p> <p>1990s TO DATE SUCCESSES Haldirams namkeens Kurkure Bingo</p> <p>RISE OF SMALL TOWNS IN INDIA2008 of Ernst &amp; is report Significant consumptions expenditure of KUT* vis--vis the metros Increasing affluence levels with a larger relevant consumer base Increasing reach of retail &amp; malls Increasing reach of media &amp; favourable media consumption patterns *key urban towns</p> <p>TOMAIKIS SCAs Pre-emptive move Differentiation Building brand Resonance</p> <p>TOMAIKI INDIA STRATEGY IMPLEMENTATION CEO Organization Staffing Evaluation &amp; control</p> <p>TOMAIKI INDIA CEO CHARACTERISTICS Characteristics will be the that of a diversification manager CEO should also have the characteristics of going to Stage II, which is managing functional along with entrepreneurial organization</p> <p>ORGANIZATION New people will have to be recruited Structure will initially be entrepreneurial But we will have to plan for a quick transition to Stage II organization structure, moment the first product gets launched</p> <p>STAFFING Initially we need a strong conceptual task force When product is identified &amp; company is in a position to launch, we need to go in for a functional structure, hence manpower has to suit the requirement of: Functional organization Skunk works for NPD</p> <p>EVALUATION &amp; CONTROL Evaluation systems have to put in place to evaluate performance of new products</p>