Teekha spices GROUP case 1

AASTHA GUPTA AMANPREET SINGH ANGAD BHATIA ANU GOYAL ANVIT VYAS ARUNIMA GUPTA NEHA SIDHWANI
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PG20111073 PG20112057 PG20111027 PG20111087 PG 20111213 PG20111016 PG20111013

CASE SNAPSHOTS
Teekha spices has strong presence in spices market in India. It is a well establish brand. Its products have AGMARK rating of purity.

Company has decided to enter rice business in North India with Khushbu brand name.

After 2 years of being in rice business, it sells only 100 tons per month. While total market size of branded rice in whole India is 45,000 tons and sales of India Gate, biggest player is of 6000 tons per month.

TSL does not have proper quality control system to check the quality of raw material.

It sells new rice instead of old rice. It has charged premium price which is not according to the quality it provides. Its sales force is not well informed about the product and lacks proper training.

Stockist in A & B category has refused to support Khushbu brand while stockiest in C & D category are being able to sell only 200-300 kgs per month.

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PROBLEM Improper market survey: lack of information like quality DEFINATION

demanded, price range, old rice & new rice, how to build brand equity. 2) Improper identification of STP:
)

have not identified that out of total market size of 45,000 tons per month, how much is the size of north Indian market. have not identified which socio economic class of people they want to target. Providing poor quality with premium pricing.

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Lessons learnt from TSL on the distribution of a new product with enormous potential
Khushbu wasnt able to match teekha spices image. Lack of quality standards of their rice. Preference for old rice among the Indian households. Salespeople to be well versed with the brand and be loyal towards it which they are not presently. Understand the consumer preferences better. For stockists of A and B category, who are not interested in keeping their rice, they should provide them with extra 3/18/12 commission.

Ways in which TSL can make a success in rice by using its distribution network
1)

Proper utilization of Channel Information System to gather information like pricing trend, tracking competitors, market size, consumer preferences.

2) Teekha spice should go for Extensive distribution system. 3) Designing monetary & non monetary rewards system for distributors. 4) Sales manager should motivate its sales team, give them proper training and information about the new product and design reward & incentive system for salesmen. 5) Teekha spices should implement Feedback Mechanism to improve on its product. 6) Teekha spices can go for promotions and advertisement to increase the demand of its product.

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Should TSL exit the rice business??????? It should develop and maintain its brand Khusbhu using its current distribution channel. 1) It could conduct a proper market survey to gather information like customer preferences, pricing trends, competitors offering. 2) It could improve upon the quality of its product. 3) It could charge prices according to the market price. 4) It could give proper training to its sales force.

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1)

Learning from the case Collecting information from channel Information System,

2) 3)

4)

5)

analyzing it properly to make a decision. Company should properly segment and target the market. Brand equity is not enough to sell the product in market. Price should be according to the customers reach and quality should be up to mark. If a company wants to launch a new product and wants distributors support, it has to offer some monetary & non monetary rewards to distributors. If company wants to launch a new product it has to create its awareness first by advertisements and sales promotions.

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