The Tasty Bite Story

The Tasty Bite Story

(CASE STUDY-1)

In this case study of Tasty Bite Eatables Limited (TBEL) we have seen the change in strategy of the company for cementing its marketing base in US and in India.

Brief history:

Tasty Bite Eatables Limited (TBEL) was launched as RTS manufacturing company by Ravi Ghai and Ravi Kiran Agawam to process frozen vegetables and RTS (Ready to Serve) foods. After lackluster performance in India they introduced its products in Middle East, Russia, and the US but again they faced same fate. Thanks to the government regulations they entered into collaboration with the beverage company Pepsi but after the abolishment of Govt regulations Pepsi decided to opt out of TBEL. Preferred Brands International (US based natural food marketing and distribution company) acquired the exclusive marketing rights for TBEL's products. By the end of 1995, TBEL faces serious financial trouble due to excessive borrowings which results in HLL acquiring Kwality ice-cream brand and Grand Foods, the holding company of Kwality Frozen Foods. Subsequently TBEL became an HLL company. but after loss of around Rs 96 million TBEL was declared a sick unit and referred to BIFR(Board for Industrial and Financial Reconstruction).HLL decided against venturing into the frozen foods business and sold TBEL to PBI. It was strategic initiative by Ravi Nigam, President of PBI and his 4C’s (Concentration, Conversion, Collaboration and Cultivation) helped TBEL to improve its market shares in US. After success in US, TBEL decided to re-enter into Indian market. In India they decided a strategy i.e. collaborate and not compete with the new Indian woman. As result by 2001, TBEL's profits increased nearly three fold to Rs 13.42 million.

Economic aspects:

• Collaboration- TBEL collaborated with Pepsi, HLL and finally with PBI so as to save itself.

• Consumer taste and preference-...