Business Development and Revenue

Optimization
PRESENTATION ON TASTY BITE EATABLES LTD,PUNE

Made By:-

Ashish Nigam
Dharmi Shah
Kund Sapani
Ria Nandani
Urvi Palvankar
Manufacturers of packaged meals that represent the
delightful flavors and variety of Indian and pan-Asian
cuisine.
 History
• Incorporated in 1986
• 1995: Preferred Brands International (PBI: US based
marketing and distribution company) was hired to market
TBEL products internationally.
• 1996: Hindustan Lever Ltd. (HUL) acquired Grand Foods and
TBEL who had accumulated losses to the effect of 112mn
INR.
• Its products were completely rejected by the Indian Market.
• Analysts said it was launched ‘ahead of its time’
• TBEL (Tasty Bite Eatables Limited) registered for Board for
Industrial and Financial Reconstruction (BIFR)
 Why Globalize?

• Limitations in the domestic market:

India is highly price sensitive market,
• Social Cultural factors:
purchasing patterns had not evolved enough
• More Opportunities:
opportunities to venture into various cuisines (Thai
food) and various niche segment (vegan, kosher).
 Geographic reach
• TBEL has its major markets in the following
countries
– United States of America
– UAE
– Europe
– Australia
 Demographic Potential
For UAE

Population: 4,798,491

Nationals Non-nationals
864,000 3,620,000

Abu Dhabi Dubai Sharjah

1,620,000 1,720,000 882,000

Males Females
2,684,000 1,169,000

Indians
~1,810,000
Why UAE?

Second
highest
consumption
expense

Source:
 Products
• Ready to eat indian packages (RTE)
• Pastes
• Thai
• Simmer Sauses
• Ready To Serve (RTS)
 Product
Madras Lentils

INTERNATIONAL
MARKET
United States of America
 Business Rationale
• Highest percentage of non-nationals
• shopping in larger stores
• Hypermarkets, super markets, and
superstores generally are located in urban
areas.
• Less local manufactures
• Organic food is gaining popularity in the
UAE

Source: World Bank, Asia Trade Hub, UAE Data Dire

 Sales and Marketing
• Sales and Marketing – 2 departments
generating revenue
• Marketing - visibility in budding markets and
differentiating from competition in existing
markets
• Responsibility of the sales department
-production meets the market needs
• (add points)
 Approach to sales management
What kind of contracting is followed?

• Unique contract with vendor:- Fixed margin rates

due to fluctuating value of commodities. The
vendors gain heavy margins and vice versa
depending upon the price of the raw material
available at that period of the year.
• Contract with Preferred Brands US:-
Fixed price contract- covers its risks against forex
losses and forecasts its future year returns as it
knows the boundaries it has to work within.
• Unique contract with retailers:-
They have to sell the product at the selling
price ie 2.99$ they buy it from PBI at 1.9$.
These margin settlements are made.
(In case of misalignments where excess units are held with the retailer
a mark down payment agreement is made where some compensation
is paid to the retailer as an incentive and the goods thus are bought
back by PBI later on these units are given as charity )
 Degree of Alignment and Misalignment

• There is a degree of misalignment at every step.

Accurate demand needs to be forecasted as extra
units manufactured get wasted since the company
manufactures perishable goods.
• At every level of supply chain improved technical
knowledge should be provided so that maximum
yield can be obtained from the raw materials
• An efficient supply chain will help TBEL to minimize
its manufacturing costs which will allow it to hedge
its foreign exchange risks
 Incentives provided at the store

• It is essential for the company to promote

their product at the store at the store as it is
has to distinguish itself from the other
products on the shelf. Several offers are
given to the customers like:-
Free vouchers
Free discounts
Free merchandise
 Margins through Supply Chains

Manufacturing Preferred Retailers Final Retail Price

cost brands Int. buys
at
• 50 c • 85 c • $1.5 to $1.9 • $2.99
International Distribution and Logistics
• Exported from JNPT (Jawaharlal Nehru Port Trust) and
Kandla Port
– Port of Los Angeles
– Warehousing facility at the Port from where it is
distributed directly to the retail outlets to reduce
costs.
– Transported to retail outlet’s closest warehouse.
 Supply Chain

 Supply chain process

 Pune Factory Port (Kandla)
Distributor warehouse (Los
Angeles, USA)

Retailers

Customer
s
Organization structure
Competition
 Competitive Advantage

• High percentage of Non-national people

• Taste bites is a well known brand in US and us
and UK population is high in UAE so good will
can be used
• Licenses differentiate between products
Competitors
 Differences with competition
• Licenses differentiate between products