Identifying and tapping new business opportunities with Food Service

Customers i.e. Horeca for European Products in South Mumbai.

HUGO REITZELBY

NILISHA BRAHMBHATT13BSPHH010376IBS HYDERABAD

To gain the practical knowledge related to sales and distribution.

To learn how to use online marketing tool.

To learn how to target the potential customers.

To improve the communication skills.

To learn the skill of managing every different customer in a different way.

To build personal relationship with the customers.

To learn how to keep a daily record of work done.

Reitzel is a family-owned company that was successively managed by Hugo Reitzel, the founder, Franz and Charles Reitzel, his sons, and then Joseph Poupon until 1986.

Since then, the company has been run by Bernard Poupon. The Reitzel and Poupon families are majority shareholders. Pierre B. Darmon joined Bernard Poupon to manage the

company in 1987. It entered into India in the year 2003. In 2005, the factory in India was commissioned.

Gherkins

Jalapenos

Mustard pastes

Baby Corn

Flavoured Vinegars

Flavoured Organic Olive Oils

Dressings

Mustards, Olive Oils and Vinegars are going to be launched

soon in India.

The products available in India currently:

Gherkins

Jalapenos

Baby Corn

QUALITY is the major USP of HUGO REITZEL.

All the products are certified under the BRC and IFS certifications.

1. BRC Global Standards– BRITISH RETAIL CONSORTIUM

2. IFS – INTERNATIONAL FOOD STANDARDS

The high price of Hugo Reitzel products doesn’t attract more customers

So, different strategies are followed for different customers

1. Di Napoli, one of the customers wasn’t given a discount but was given a free issue if the order placed was 5 3kg cans minimum. Thus, they got the 6th can as free issue.

2. Oberoi Trident ordered in bulk, almost 72 bottles of gherkins and thus they got a special price which was lesser than the original price.

Formula:

LIFETIME VALUE (LTV) = (AVERAGE VALUE OF SALES) X (NUMBER OF REPEAT TRANSACTIONS) X (AVERAGE RETENTION TIME)

AVERAGE VALUE OF SALE: The total purchases and the value in the bill / cheque is the average value of sale. It is the complete order

NUMBER OF REPEAT TRANACTIONS: The no. of times the customer comes and buys the products from your company.

AVERAGE RETENTION TIME: The number of years for which your customer will purchase from you.

AVERAGE VALUE OF A SALE: Rs.8000 NUMBER OF REPEAT TRANSACTIONS: 20 TIMES IN A YEAR = 1.67 AVERAGE RERTENTION TIME: 3YEARS = 36 MONTHS

LTV of THE OBEROI TRIDENT = 8000 X 1.67 X 36= Rs.480960

Rs.480960 is the amount of revenue that Hugo Reitzel will receive from Oberoi Trident over the lifetime if it continues the same amount of purchases for the next 3 years.

PROFIT: We have here got the total revenue but not the total profit that would be generated from Oberoi Trident. To determine our profits we need to know what our average margin is. This will show the amount you are

keeping aside for the company. Hugo Reitzel wishes to maintain an average margin of 70%. Then, the profit is: LTV X AVERAGE MARGIN = 480960 X 0.7 = Rs.336672

AVERAGE VALUE OF A SALE: RS. 3000

NUMBER OF REPEATED TRANSACTIONS: 12 IN A YEAR = 1

AVERAGE RETENTION TIME: 2 YEARS = 24 MONTHS

LTV of FRANCISCO’S PIZZERIA = 3000 X 1 X 24

= Rs.72000

PROFIT:

LTV X AVERAGE MARGIN = 72000 X 0.7 = Rs.50400

YOUR

BUSINESS

STRATEGY

POLITICA

L

ECONO

MICAL

SOCIAL

TECHNO

LOGY

ENVIRON

MENTALL

LEGA

L

POLITICAL – Taxes, customs, government regulations, etc.

ECONOMICAL – Margins of the participants in the supply chain, sales turnover & employment level : 650 employees.

SOCIAL – CARDTS, HANDICAP INTERNATIONAL

ASSOCIATION.

TECHNOLOGY – Innovation.

ENVIRONMENTAL – Farming technician and the experimental farms.

LEGAL – Abiding by the various laws :

1. The Employment Law

2. Minimum Wages Act.

3. Wage Rate.

4. Working time for both men and women.

5. Health and safety regulations for both farmers and the employees in the factory.

6. Consumer Protection Act.

Rivalry

within an

industry

threat of

new

entrants

bargaining

power of

buyers

threat of

substitutes

bargaining

power of

suppliers

1. Rivalry within an industry: This type of rivalry is faced by Hugo Reitzel in India from Del Monte, Golden

Crown, Fragata, Figaro and Dijon. The main issue lies with the price. The prices of these brands are very low

compared to that of Hugo Reitzel. 2. Threat of new entrants : Imported company of organic food which is the major competitor of Hugo Reitzel

in France or Switzerland, comes to India and has a lower price.3. Threat of substitutes: Not only the major brands like the Del Monte, Figaro, Fragata, Golden Crown and

Dijon sell these products, but also the local sellers have them in their shops. Also the major substitute of gherkins comes from its own little family, cucumbers.

4. Bargaining power of the suppliers: The company bargains with its buyers not on the basis of the price but

on the basis of the quality.5. Bargaining power of the customers: Buyers have got many options at their ends which are not very poor in

terms of quality. But, the reduction in the price is also limited to a certain extent. The

buyers have to loosen their pockets a little more to get that higher and richer quality.

•Competitors introducing

variants

•Competitors lowering the

prices more

•foreign companies entering

the Indian Market at lower

prices.

•emergence of new restaurants

and hotels

•people wiling to try new

dishes

•the need for imported food

products

•increasing demand for quality

food

• High Prices

•many strong competitors

•low awareness

•preference for costing and

not quality

•less consumption of these

products

•Specialization in

gherkins

•rigorous selection of raw

materials

•Professional High quality

recipes

• active R&D department

•prompt supply chain

•specialized factories

•Variants available

•Quality Lablels: BRC &IFS

Strengths weakness

threatopportunity

Finding potential customers with the help of Zomato.

Targeting the customers by making visit to the outlets.

Giving presentation of Hugo Reitzel and it’s business.

Highlighting the USP’s of Hugo Reitzel to the customers.

Recording the answers to the questions asked to them.

Giving samples if required and getting those samples from the distribution office.

Regular Follow up.

Taking note of the orders placed and communicating the same to the distributor.

Finalizing the payment details.

Keeping track of the accounts through different types of reports.

(Screenshots given in the next slide of the different reports).

1. Updated MoM

2. Account Database3. Factsheet Report

4. Account Status

In the period of 12 weeks on my summer internship I cracked 7 deals and managed to get an order from them.

The cracked accounts are :

1. The Oberoi Trident

2. Francisco’s Pizzeria

3. The White Owl

4. Two One Two Bar and Grill

5. Di Napoli

6. Pronto and Paninaro

7. Barking Deer

From the Organization:

Understanding the industry of the organic food and their trends.

Competition in the industry

Employer & Employee relationship

Business development activities

Flexibility for learning different skills

From Industry:

A little variation in the pricing strategy of the competitors may divert lot of customers. So, a continuous check over competitor’s products & prices should be kept.

From the customers:

Customer relationship management with new, existing & also with those customers who reject the product.

Profiling of potential customers.

Understanding customer needs & dealing with them differently.

• Timely delivery of the order placed by the restaurants and the hotels should be ensured as promised by the company.

• More distributors or the sub distributors should be appointed.

• More awareness should be made for the purpose of advertisement.

• Try and look into the retail aspect in South Mumbai.

• Smaller packs of the products should be made to reduce the costing.