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We have been hearing about Asia pacific emerging as a strong potential target market for the international behemoth brands. India is the newest and lowest of low hanging fruit? Mobile phones,telecom,internet,packaged cereal,lifestyle pharmaceuticals,Indian consumers are buying like never before. The Indian media is abuzz about chewing and drinking while you are on the mobile phone. Perplexed with what I’m trying to say here? I am really sure that you would have heard this by now. It’s Bharti and Del-monte, so now you chew when you talk, right? Big brands look for a big share in the market. If you want to be the shark you might want to catch the big fish to feed your hunger, and that’s how Del-Monte targeted India’s leading business group “Bharti Enterprises” a pioneer in telecom, agri business, insurance and retail sectors. Since the F&B market in India holds great potential, Bharti Enterprises and Del-Monte teamed up to launch a wide range of products, including beverages, packaged fruits and ketchup. But why did Del-Monte choose Bharti for penetrating the Indian market? That should be a good question because we all know that Reliance Fresh also has a good market in India. Actually, the unlisted FieldFresh Foods was set up in 2004 to supply fresh fruits and vegetables and counts food retailers and supermarkets such as Easy Day, Big Bazaar, 24/7, More and Big Apple locally & globally. Agri-business was the first turn of Bharti Enterprises Ltd (BEL) when they announced a foray into the sector through FieldFresh Foods Private Ltd, a 50:50 joint venture with the Rothschild Group-controlled ELRo Holdings India Ltd. The new company's core business was to export fresh fruits and vegetables from the country to markets such as the European Union, the United Kingdom, South East Asia and West Asia. From then Bharti’s agri-business started as contract farming routing from Punjab, Jammu & Kashmir, Himachal Pradesh, Uttaranchal, Haryana and West Uttar Pradesh. The products to be covered include apples, /kino/ (citrus), litchis, cherry, tomato, baby corn, okra, lettuce, etc. and then expanded to other parts, particularly Maharashtra, Karnataka and Andhra Pradesh for products such as grapes, mangoes and bananas. Now with help of Del-Monte’s range of delicious and superior tasting products the company’s target is to produce, market and distribute farm fresh products that address the needs of today’s consumer. Sanjay Nandrajog, CEO of FieldFresh Foods Pvt. Ltd. said, “We are geared to break new ground in the food and beverage market in India. Besides establishing a strong retail presence, we plan to leverage growth avenues in the B2B segment. I am optimistic that our plans will propel us to become a leading player in this segment and be one of the top ten food and beverage companies in India by 2014.” We should be proud of the undertakings from some of the prominent businesses proposing for a joint venture to develop the consumer market in India. As per Sanjay Nandrajog, CEO of FieldFresh Foods Pvt Ltd, we must plan to leverage the growth in the future market. During my recent research I found that branding has become very important in India, so it’s not only a joint venture to expand the business in the potential market but also to find out amount of consumer spending due to the huge development of economy in India, so it has forced the need of quality products with superior taste. In the USA, Del Monte until now, has been focused on in-store marketing behind its fruits and vegetables business, as per a research conducted by AC Nielsen, the company is spending $2 million on the effort this spring and another $13 million in September. The company spent only $5 million in 2008 advertising its shelf-stable fruits and vegetables. Ads are now running in regional cable markets in Buffalo, N.Y., Kansas City, Kan., and Louisville, Ky. The campaign will expand with TV, print and online (_ Delmonte.com/solutions _) elements to media outlets like A&E, ABC Family, Food Network, Parade magazine and Parenting.com and iVillage.com this fall. Like other food makers, Del Monte is using the economic downturn as an opportunity to reach consumers. Pearce said company research showed that Del Monte was a brand consumers know and trust, but it had to overcome the notion of not being as “fresh” as frozen or store produce. How are they going to spend on branding in India? The brand in India is receiving a positive press, but yet India is weak in many ways. The first major constraint in India is to market the products in every segment where a normal man is aware of the products & pricing. Like Pearce, has Sanjay given a thought about segmentation and branding in India? Let’s keep a watch. Ganesh Ravi Analyst: Emerging Markets /Ganesh works for ACG in the research and analysis division on industries like CPG, Biotech and and Pharmaceutical industry.He holds a bachelors degree in Commerce and is pursuing his masters in Business Administration.For a detailed report on his findings please fill up the insight section and we will be happy to reach out to you./ |
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