Q1-Prepare a Stepwise plan for the launch of Reitzel Products in

India (10 Marks)

INDUSTRY DESCRIPTION

Founded in 1909, Reitzel has its presence in France, Turkey, India, and Switzerland. They
manufactured a variety of Swiss condiments and gourmet specialties. Reitzel set up its operation in
India in 2003 at Kunigal, about 60 kilometres from Bengaluru a major metropolitan city in south
India. The company chose Kunigal as a manufacturing centre because the climate was conducive for
the cultivation of jalapenos gherkins and other major products around this area.
Reitzel India sells mainly six types of products in the Indian market namely gherkins, jalapenos,
organic olive oils, flavoured vinegar, burger chips, and mustard paste. These products are both for its
businesses and consumers.

MARKET STUDY

India is a land of vast varieties of cultures and cuisine. The cuisines contain a variety of spices and
vegetables. The products offered by Reitzel are mainly used by 5 star or 7-star restaurants in tier 1
cities ranging from 15 to 79. There are already established players in these markets which sell these
gourmet specialties. The major focus of the businesses buying these products is price dynamics and
a strong supply chain. In terms of tapping the Indian customers, the products need to adapt to the
Indian taste and showcase the nutritional values of the products.

TARGET MARKET

With the motive of creating brand awareness in the market, Reitzel will first tap B2B for bulk and
long-term orders. In this, we will connect to all the eateries, hotels, food chains, premium
restaurants as well as airlines, offering Italian, Oriental cuisines. Through B2B, we would be catering
to the segment of consumers, who already have a taste for such food and food products. Once the
sales figure in B2B reaches an optimum target, Reitzel will also shift towards B2C. Since the
consumers are highly price-sensitive, in B2C Rietzel will begin with small packaging units (100 gms,
250 gms pack) that will be affordable, trial packs that shall lead to consumers developing a taste for
such food products along with getting accustomed to the premium quality.
For products like Baby corn, Reitzel can establish a network beyond tier-1 cities as baby corn is being
used in fair amounts in many Chinese restaurants.
Reitzel can find a good market for mustard paste in Indian cuisines from southern and eastern states
where the mustard paste is used in their food preparations.
SWOT ANALYSIS

STRENGTH WEAKNESS

 Premium quality products  High Price

 Established brand name in western  Niche Market
countries  The product doesn’t align with Indian
 Varied products available under the taste
same brand  A distribution channel is not
 Sustainable methods of production established
 Favorable climatic conditions for the  Unawareness of brand and its product
cultivation of raw materials in the Indian market
 International quality certifications like  Short consumption period after
BRIC and IFS unpackaging

OPPORTUNITIES THREATS

 Unexplored market to cater with the  High competition

wide range of products  The high nutritional value is available in
 High-profit margin the already existing staple diet.
 Localized demographics where there is  Highly price-sensitive market.
high demand for European delicacies.  Perishable raw materials and highly
volatile climatic conditions

COMPETITOR ANALYSIS

As far as the Indian market is concerned, the gourmet food sector faces a monopolistic competition.
A handful of players are involved in the market and offer a variety of products that are similar but
not identical. The companies that compete have a strong presence in the distribution network.

Reitzel Products
Koepleman
1. Gherkins Neo Foods
American Garden
2. Jalapenos
3. Mustard Paste
4. Vinegars
5. Babycorn Weikfield

Product overlap among competitors

As per the product overlap analysis, the prominent competitors do not offer the kind of variety
which Reitzel have. The international quality certifications that we possess are testimonials of the
 premium quality product that Reitzel offer. This can leverage brand recognition throughout the
country and will help Reitzel in partnering with big brands.

PRICING STRATEGY

In B2B, Reitzel will initiate with attractive offers which will be slightly less to competitors' prices. This
will attract many B2B customers as the premium quality product is being "offered" at affordable
prices. Once B2B starts buying, Reitzel will reduce the offers and will set the pricing as that of its
competitors. B2B will still buy the product as the premium quality is being offered at the same prices.
Then Reitzel will continue to reduce the offers and sell them at slightly higher prices than competitors.
At this stage, we will introduce bulk discounts which will increase our sales. By this time, B2B
customers will get habituated with the taste, and then changing the product again will lead them to
severe consequences so they will continue buying the products from Reitzel. The control is now with
Reitzel and the company will gradually bring the offers close to MRP. This will be the time when
Reitzel will enter B2C. With the help of brand awareness and marketing strategies, Reitzel will
introduce smaller packaging products. These products will be affordable by major chunks or Indians
as the pricing will be lower because of smaller packets.

DISTRIBUTION NETWORK

Dedicating a sales team to connect with the high-end restaurants ensures the trust factor among the
vendors, the company would include price dynamics and ensure providing the high-quality product.
Contacting the local food joints and quick service restaurants through the sales force ensures that the
products reach a larger unexplored market. Building a strong supply chain so that the product not only
reaches high end restaurants but also small supermarkets and Kirana stores. Selling and promoting
the product on various E-Commerce websites ensures that the product reaches several consumers.

Q2-On the basis of the discussion of the case done in the class do
you think that the company should go in for B2B or B2C? (10 Marks)

Parameters B2B B2C B2B and B2C

Customer Base Narrow Customer base Large customer base Large customer base
Adaptability No changes in product Need to adapt with Need to adapt with the
are required. the customer taste customer taste and
and preferences preferences
Profit Margin High-profit margin in B2B Low-profit margin High-profit margin when
comparatively covered both.
Marketing cost Low marketing cost in High marketing cost High marketing cost
direct B2B
Packaging costs Low packaging costs and High packaging costs High packaging costs with
and varieties less packaging variety with more packaging more packaging varieties.
varieties.
Competitors Comparatively less no of More number of High competition in both
 competitors in B2B as competitors including since the established and
only limited players get local business well as new entrants will
into the market. compete.

B2B B2C
Channel Sales Force E-commerce Modern Trade
Parameters
Adaptive Difficult to adapt Moderately difficult Very difficult to adapt.
Economic Moderate Cost Low Cost High Cost
Control Low High High
Marketing Cost Low High High
Packaging Cost Moderate/Low High High
Level of distribution Moderate Low High
network
Visibility/recognition Low High High

As per the analysis from the above-mentioned table which differentiates between B2B and B2C on
the given parameters and the channels for the sales and expanding business of the Reitzel product
we deduce that Vijay Kumar should go for B2B sales as the operations and marketing cost is low and
the profit margin is high.

Utkarsh Kumar Singh – 21F262

Bipasha Ganguly – 21F214

Kiran D – 21F229

Pranav Kasliwal – 21F240

Priyanka Kadalage – 21F244