Agro Tech Foods and the branded pulses segment
The case considers the evolution of the Indian pulses market and the ensuing opportunity in the branded pulses segment. India was the world’s largest producer, importer and consumer of pulses because of the high percentage of vegetarians in the local population. The Indian food industry is expected to reach US$65.41 billion by 2020 owing to the rise in middle class income, changing urban lifestyle and modern retail trade. Agro Tech Foods, the Indian arm of ConAgra Foods, USA has an opportunity to enter in the Indian branded pulses sector. The decision that Agro Tech has to make was whether to go ahead and gain the prime mover advantage or wait for the other players to cultivate the market and reap the benefits later. Company also required to see whether the Indian market was demographically, economically and psychologically ready to make investments in branded pulses and to pay a premium for the same.
The key learning objectives are: 1) Market analysis for new business opportunities; 2) Understanding the impact of SWOT and Porter’s five forces on launching a new product line; 3) Analyzing the pros and cons of brand extensions; 4) Understanding the possible risks in entering a new business segment.
Agro Tech Foods, Consumer Goods, Pulses
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