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    Entry Strategy For Branded Rice Business-: Ananya

    Uploaded by

    Atul Tabib
    The document outlines an entry strategy for a branded rice business called Ananya. It recommends starting in South India and targeting SEC A and B customers who shop at large retailers. The brand will position itself as offering premium quality rice at local prices. Marketing will focus on sales promotions, events, and digital channels with a 2-channel distribution strategy of modern and traditional retailers. The budget is Rs. 100 crores over 3 years, with higher spending on infrastructure and below-the-line activities compared to branding. The regional launch approach will expand to eastern, western, and northern India over time.

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    Entry Strategy For Branded Rice Business-: Ananya

    Uploaded by

    Atul Tabib
    31 views12 pages
    The document outlines an entry strategy for a branded rice business called Ananya. It recommends starting in South India and targeting SEC A and B customers who shop at large retailers. The brand will position itself as offering premium quality rice at local prices. Marketing will focus on sales promotions, events, and digital channels with a 2-channel distribution strategy of modern and traditional retailers. The budget is Rs. 100 crores over 3 years, with higher spending on infrastructure and below-the-line activities compared to branding. The regional launch approach will expand to eastern, western, and northern India over time.

    Original Description:

    branded rice details report

    Original Title

    Entrystrategyforbrandedriceinindia Keerthang 130903025154 Phpapp01

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    The document outlines an entry strategy for a branded rice business called Ananya. It recommends starting in South India and targeting SEC A and B customers who shop at large retailers. The brand will position itself as offering premium quality rice at local prices. Marketing will focus on sales promotions, events, and digital channels with a 2-channel distribution strategy of modern and traditional retailers. The budget is Rs. 100 crores over 3 years, with higher spending on infrastructure and below-the-line activities compared to branding. The regional launch approach will expand to eastern, western, and northern India over time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views12 pages

    Entry Strategy For Branded Rice Business-: Ananya

    Uploaded by

    Atul Tabib
    The document outlines an entry strategy for a branded rice business called Ananya. It recommends starting in South India and targeting SEC A and B customers who shop at large retailers. The brand will position itself as offering premium quality rice at local prices. Marketing will focus on sales promotions, events, and digital channels with a 2-channel distribution strategy of modern and traditional retailers. The budget is Rs. 100 crores over 3 years, with higher spending on infrastructure and below-the-line activities compared to branding. The regional launch approach will expand to eastern, western, and northern India over time.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 12

    ENTRY STRATEGY FOR

    BRANDED RICE BUSINESS-


    ANANYA

    By Keerthan G
    IIM Indore
    Market Insights (from the case)
    Presence of National brands have been strong in Urban areas

    Local players competing by trade relationships and price discounts

    Demand Supply Scenario


    - There has been a steady increase in the number of national brands with many companies in the food
    segment and FMCG category entering this category

    - Certain areas have few dominant local players which have relied mostly on their trade relationship to push
    their products

    - The urban consumers who mostly visit modern retailers mostly prefer branded rice

    - Slowly branded rice is finding acceptance in Tier 2 and 3 towns

    Category Value determinants


    1. Price (because of high level of price sensitivity)

    2. Quality

    3. Availability Price sensitivity


    Segmenting
    The food preferences are generally Geography based.
    In the 1st year, it is advisable to start with South India as it is has high rice consumption
    and provides a direction towards the Pan India launch in the coming years
    Region- South India
    Cities - With Population > 0.5 million
    Segments- Based on Socio Economic classification

    Targeting
    SEC
    Customers who mainly visit Hyper Markets, Large retailers or Departmental stores A& B
    Who look out for premium quality products which delivers the optimum value
    Target- SEC A,SEC B

    Positioning
    A rice brand which offers the best export quality rice at the best local price
    Branding Strategy

    For a category like Rice brand, a Brand name can be adopted like
    Ananya and line extensions can be done as and when a new variant
    needs to be introduced like Ananya Basmati, Ananya Sona Masuri etc.
    Ananya
    Points of Difference
    The brand has to introduce a container packaging that helps in storing
    as well as pouring out the rice from the air tight container. This is a
    true value created for the consumers who can forget the hassles of
    storing and taking out the rice which no competitor offers
    Points of parity
    There are a lot of parities with the competitor brand as it is a low differentiated
    product
    Quality
    Pricing
    Customer Value Hierarchy

    Augmented Product-
    Air Tight Container
    Packaged Premium
    Rice

    Expected product-
    High quality Rice

    Basic Product-
    Rice

    Core benefit-
    Food
    Pricing

    Points to be considered while pricing the product

    low-involvement category

    high level of price sensitivity

    So pricing needs to be considered very carefully as it has a high relevance for a consumer

    1. Pricing objective: Market entry

    2. Demand: High price sensitivity

    3. Estimating costs: Production costs + Transportation costs+Marketing costs+Misc.costs

    4. Analyzing Competitor: Costs, Prices and Offers

    5. Selecting a Pricing method: Going rate pricing i.e. basing the prices on competitors prices

    Adapting the Price

    Prices can differ on the basis of geography, short term promotions and the sales channel
    Marketing Channels
    As it is a low involvement and highly price sensitive product, channels play a significant role in ensuring

    - availability and

    - controlling the price

    Considering the Segmentation and Target markets as mentioned earlier

    2-channel strategy needs to be adopted

    1. Modern retail- includes Supermarkets, Hypermarkets and Large retailers

    2. Traditional channel In certain localities for easy availability to customers

    in the coming years i.e. 2nd or 3rd year

    Trade margins
    Trade margins play a significant role in sales as the store keepers tend to push those products.
    So a higher margin in comparison to the competitors needs to be given to create the initial push to
    the brand
    Marketing Communications Mix
    1. Sales promotion- To create the initial pull towards the brand by offering short term offers

    2. Events and Experiences- Sponsoring a Cookery show on TV grabs eyeballs which provides
    a highly targeted communication

    3. Interactive marketing- Providing innovative recipe ideas using the brands rice through its
    online channel and engaging with its customers

    4. Advertising: Cost effective Localized advertising and promotional activities like


    In-store promotions and visual display aides

    These activities should help achieve


    Brand name awareness measured based on recognition, recall and top of mind

    Brand loyalty Segmented into non customers, price switchers, passively loyal,
    fence sitters and committed and moving them to the next higher level

    Improvement in Perceived quality

    Brand associations
    Timeline of events

    Nov 2013
    Oct 2014 Dec 2015-
    Brand launch
    with a few variants Easter n India Western
    in South launch India launch

    May2014 Apr2015- Mar 2016-


    A few more Traditional North India
    variants launch channel Launch
    after gauging the operations
    response start
    Cost Implications
    Year wise
    1st year budget allocation (South region- largest region) = Rs. 30 Crores

    2nd year budget allocation (South + Eastern region) = Rs. 45 Crores

    3rd year budget allocation (Pan India ) = Rs. 25 Crores


    Total = Rs. 100 Crores

    Budget reduces from year to year because of the fringe effects carried forward from the previous year

    Activity Wise

    Pan India Infrastructure including Sales and Supply chain = Rs. 70 Crores

    Branding activities = Rs. 30 Crores

    Total = Rs. 100 Crores

    This category requires more of below the line activities over above the line
    Summarizing

    Going for a regional launch and then slowly moving on for a nation wide launch by
    gauging the response
    Launching a few variants initially and then bringing in the other variants in a phased
    manner
    High focus on the modern retail channels along with a small traditional channel to
    complement it
    Trade promotions and discounts are the drivers to sale and less spending on
    traditional marketing channels like TV and print
    i.e. higher emphasis on Below the line activities over above the line as it suits the
    category under consideration
    Thank you

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