International Market Expansion Plan for Ramalingam foods

Assignment Taken

Leadership role

Case Understanding

Ramalingam Foods is a successful fast-food restaurant famous for its authentic south Indian freshly cooked food and filter coffee. The company proved their innovative capabilities during the 1975 political turmoil and stayed in business. The company was able to tackle the critical problem of shelf life of their products by turning them into powder form. Over the years Ramalingam foods has seen a positive growth in their business and they are aiming to expand their business internationally. Presently, Ramalingam food's operating revenue is INR 152 crore for the financial year. It’s EBITA has increased by 3.16% over the previous year. Ramalingam food has set 50 crores for International Business Expansion for FY 2019-2020. Also, currently Ramalingam foods doesn’t have the necessary permissions & Licenses for International business. Ramalingam Foods cannot enter more than one foreign region as they don’t have enough capital and business knowledge currently.

BCS Solution Summary

Step 1: Register your company as a subsidiary in UAE Step 2: We will set-up a production and warehousing facility in Sharjah Step 3: We will start the hiring process and for senior leadership and labor Step 4: We have decided the marketing strategy Step 5: We would be using the Zoho platform and Agile scrum methodologies for all the IT related work Step 6: Operation and Supply chain distribution strategy

Solution

Mission for International expansion:

To be the most favourite instant mix and fast-food company overseas while solving problems

associated with cooking traditional cuisines and fast foods in a quick and hassle-free way.

 

Vision for International expansion:

To be the global leader and innovator in ready to eat food markets while giving utmost preference to customer preference, purity and quality.

 

Tagline:

Making Homemade Chefs Since 1965

 

Values:

Hardworking, Value Transfer to customers, Honesty, Loyalty, Fair means of business

 

Objectives:

• To establish the brand name across the countries selected for expansion driven by quality,

marketing and our employees

• To capture INR 300 CR market in first 3 years of operation or 5% of the market in first year

• To break even in first two years of operation and attain revenue and attain revenue growth

of minimum 20% y-o-y

• To add 15% Cr from international business to the company’s bottom-line in 3 years.

• To add at least 6 products (mix of Indian cuisine and international cuisine) on yearly basis

driven by R&D

• To enable seamless transition from a domestic company to a global company without

hampering fundamental values, principles and maintaining good environment to work

• To target expansion in other countries as well.

• To operate efficiently which would be reflected by increase in operating margins

• Reaping the benefits of investment in R&D, Backward Integration etc.
 

B2B sales or B2C sales?

• Ramalingam Foods will do both B2B and B2C sales. While retail customers will be the main target, as per research, the

B2B business might be upto 5% of B2C business.

• Due to huge tourists, many of the restaurants sell Indian cuisine including South Indian Food, North Indian Food, Desert

and hence we expect to gather good sales through them.

How to do marketing?

• One of the aims of RF is brand building asap since brands play major role in food market as a hallmark of purity & quality.

• RF needs to keep marketing under its own control and invest good amount behind promotional exercises.

• Main mediums of promotion:

 Digital Marketing (SEO, Social Media)

 Leaflet distribution in areas with Indian Population

 Promotion for incoming tourists

 Advertisement at prominent places i.e parks, malls, markets etc. to get visibility

 The detailed marketing plan will be available with the report focused on Marketing.

Distribution channel

Both offline and online. Since a huge portion of our target segment buys from convenience stores as well as ecommerce

sites due to rapid increase of internet penetration, it is prudent to sell through both online and offline channels.

 

Strategic Investment in Tech Start-up:
• GBC advises Ramalingam Foods to invest in some technologies for future benefits.
• It would be prudent to invest in start-ups those are potential & work on some in line with Ramalingam Food’s work.
• One area is Blockchain(for cross border trade finance) & another is Virtual & Augmented Reality(for customer experience)
• Ramalingam Food will invest INR 50 lac each in two start-ups., namely WoToken in Blockchain domain & RevoAR in VR/AR.
Vertical Integration
• Ramalingam Foods is eyeing long term growth which can be backed up by reducing dependence.
• Rice grain is the main raw material for production, hence it would want to vertically integrate by buying paddy fields.
• In UAE, paddy contributed 2.3% of GDP in 2016 and the nation produced a total of 2.7m MT of paddy. Out of this,
2.0m MT or 74.1% of the total paddy produced was from the granary areas.
• As of 2018, Indonesia produced in excess of 56.5 million tonnes of husked rice. This is projected to increase to reach 60.8
million tonnes of husked rice by 2020,
• Hence, Ramalingam Foods will be allocating an amount of 10 Cr for acquiring paddy fields in UAE and Indonesia for vertical integration

Future Expansion
• Ramalingam Foods can enter into other countries in the same region after half an year operation in these 3 countries. This
time span is for stability and correction of mistakes if any.
• Thailand can be entered. The other opportunity lies in Middle east although the competition is high. Nevertheless, if
Ramalingam Foods can attain the brand name in South-East asia, it can leverage that for other expansion.

Conclusion

International Market Expansion Plan for Ramalingam foods

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Video

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