NourishCo. Beverages Ltd.: Making New Inroads
(9 pages of text)
NourishCo Beverages Ltd. (NourishCo) was founded as a fifty–fifty joint venture between one of the world’s best-known companies, PepsiCo India Holdings, and one of India’s most respected and trusted brands, Tata Global Beverages. The long-term corporate vision of NourishCo was to focus on the health and wellness needs of India. In May 2016, after a considerable amount of investment in product, packaging, manufacturing, and innovation, NourishCo had successfully met the objectives of its business model. The company wanted to continue its expansion nationwide. NourishCo had a distinct, low-cost, and effective business model. However, the low barriers to entry in this segment could lead to fierce competition. To retain its first mover advantage and achieve financial viability, it needed to move quickly to become a national company. How could NourishCo strike a balance between managing cash flows and expansion?
This case can be taught in a post-graduate marketing course on rural marketing, marketing to the bottom-of-the-pyramid consumer, or strategic marketing. After completion of this case, students will be able to
- evaluate the national potential of expanding business operations by conducting both a macro (environmental) as well as micro (company) analysis;
- comprehend and deliver value to bottom-of-pyramid customers;
- understand how a company converts its business philosophy and mission into tangible and clear-cut business strategies;
- understand the complex challenges and opportunities that exist when dealing with bottom-of-pyramid customers;
- conduct both a perceptual (consumer-focused) and a financial analysis to evaluate the effectiveness of existing business models; and
- evaluate and identify business strategies that are viable in terms of profitability and execution.
Accommodation & Food Services
India, Medium, 2016
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