What core product is Kaggi’s Food selling when it sells edible oils - PowerPoint PPT Presentation

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What core product is Kaggi’s Food selling when it sells edible oils

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Title: What core product is Kaggi’s Food selling when it sells edible oils


1
Marketing Managementinfo_at_casestudyhelp.in91
94220-28822
2
  • Marketing Management
  •  
  • Case Studies
  • Case (20 Marks)
  • Kaggis Food Co (KFC) is a large producer
    seller of edible oils, flour, pulses, spices
    some other food items. Over past ten years KFC
    could establish itself well with popular brand
    names for its produce. Oil brand Sunrise from
    KFC is very popular as low fat, healthy cooking
    medium. KFC has three mills, one each in Meerut,
    Dehradun Lucknow. To avail tax benefit only
    spices are procured from small manufacturers who
    carry out their operations under strict
    supervision of KFC quality team. All other items
    are manufactured in companys own mills.

3
  • SO far entire produce of KFC is sold
    easily in northern region of seven states through
    loyal set of distributors retailers. For past
    three years KFC has started feeling the pressure
    of competition, more in oil flour brands. Apart
    from bundling free soap, detergent, pet jar etc.,
    competitors have increased distributor retailer
    margins on volume off take. The young and
    professional management team of KFC is confident
    of achieving targets and enjoying the scene. KFC
    mills are not very modern nevertheless, they
    are maintained well. Breakdowns and production
    stoppages are very rare. KFC has recently bought
    a large salt manufacturing facility in a coastal
    town. This mill produces good quality common salt
    on contract basis for two different brands. The
    previous owner found this arrangement very neat
    with assured and quick turn over-even though the
    profit margin is low.

4
  • KFC did not wish to change the arrangement
    immediately, but thought building own brand for
    salt will not be difficult. It will increase
    profit margin also. Added attraction is that
    branded salt can easily be sold through existing
    channel. Market for branded salt is already over
    crowed. There are many national and local brands.
    The leading brand TATA is there for over 30years.
    There are other big national brands with deep
    pockets for promotion such as Nirma, T-series,
    Dandi, Catch etc. Each brand is trying to take a
    particular but different position. While common
    planks are crystal clear, white free flow, the
    special positions are iodized, triple refined,
    from the house of TATA etc. Prices packing are
    almost same. Only Dandi Catch are costlier.
    Catch sells in dispensable container of 400 gms
    also

5
  • Answer the following question.
  •  
  • Q1. What core product is Kaggis Food selling
    when it sells edible oils?
  •  
  • Q2. Carry out a SWOT analysis for Kaggis Food.
  •  
  • Q3. Suggest some differentiators to build up
    competitive advantages for KFCs brand of salt
  •  
  • Q4. What will you suggest to ensure trial
    feedback from customers of salt during launch?

6
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