Kaggi’s Food Co (KFC) is a large producer & seller of edible oils, flour, pulses, spices & some other food items
Case (20 Marks)
Kaggi’s 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 company’s own mills. 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. 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
Answer the following question.
Q1. What core product is Kaggi’s Food selling when it sells edible oils?
Q2. Carry out a SWOT analysis for Kaggi’s Food.
Q3. Suggest some differentiators to build up competitive advantages for KFC’s brand of salt
Q4. What will you suggest to ensure trial & feedback from customers of salt during launch?
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