Kumar Food Corporation: Product and Market Growth Strategies
(7 pages of text)
Kumar Food Corporation (KFC) was a partnership firm founded in the state of Maharashtra in India by Neeraj Kumar in 2010. The company manufactured, packaged, and distributed pickles, papads, and spices. Kumar, who had previously worked at a multinational company specializing in food processing, quit that job to start his own venture with an investment of ₹1 million. The company flourished and, in 2017, its revenue reached ₹50 million. Kumar then wanted to invest another ₹50 million with the aim of reaching a ₹200 million revenue target by the end of 2018. The company faced cutthroat competition from existing players in the food-processing industry, and Kumar was worried that the Government of India’s Start-Up India initiative to promote entrepreneurship would further add to the competition. With a limited budget for marketing and communications, Kumar could take any or all of the following routes to fulfill his expansion ambitions: enhance product category, add new markets, or increase distribution channels. Which growth strategies should the company implement to establish its Shagun brand?
This case is suitable for undergraduate- and graduate-level courses on distribution, brand, or marketing management. It is intended to engage students in a discussion of partnership firms versus private limited companies; the major functions of entrepreneurship; brand building with a limited budget; and distribution strategies that businesses can adopt to reach their end-consumers. By working through the case and answering the assignment questions, students will be able to do the following:
- Examine the benefits and importance of various distribution channels.
- Analyze brand building in the food-processing industry, particularly the route taken by start-up companies.
- Study market and category development strategies.
- Design a business model canvas for KFC.
India, Small, 2017
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