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Marketing Strategy at Ganesh Bhel & Chaat Products Pvt. Ltd.*

CASE STUDY, MARKETING MANAGEMENT
ET Cases - FLAME, 13 Pages
AUTHOR(S) : Dipanjay Bhalerao, Assistant Professor, Indira Institute of Management, Pune

Case Preview

Marketing Strategy at Ganesh Bhel & Chaat Products Pvt. Ltd.

 

“When will Ganesh Bhel become a big company?”, this was the thought echoing in the mind of Mr. Dinesh Gudmewar, on his way back home, from a function where Ganesh Bhel was awarded the best Bhelpuri brand by Radio Mirchi in January 2015. Dinesh took over the management of Ganesh Bhel, Pune in 2005. Dinesh remembered how his father, Mr. Ramesh Gudmewar (Ramesh) had developed the business of Bhelpuri with hard work. But being an enthusiastic person, Dinesh dreamt about this business reaching the next level like many big names in the food service retailing. Dinesh knew this would be a great surprise to his family, as nobody in India had ever thought of growing a Bhelpuri business in the corporate way as he was thinking. This very dream made him call for a team meeting at Ganesh Bhel to discuss the roadmap for the future marketing strategy. He did not want to party much, but focus on future roadmap of making Ganesh Bhel & Chaat Products Pvt. Ltd a national player in the emerging fast food market...........

Early Years of Ganesh Bhel – 1978-85

Panipuri and other Chaat products always created mouth-watering feeling in the taste buds of millions. During the last 28 years of this business, Ramesh got established as a known entrepreneur in the fast-food segment and made Ganesh Bhel as the most sought after supplier of Panipuri and Bhel in Pune, Exhibit I. Ramesh remembered this as a tough business journey, since 1978, when he had INR 10 as investment to start the business with a handcart. “I have gone through all the ups and downs of business in this long journey. But I had my wife stood by me and shouldered all the responsibilities during this journey”, shared
Ramesh.................

Establishing the First Ganesh Bhel Store: 1985-1995

Establishing the first Ganesh Bhel store was a challenge from the business point of view, as in the 1980’s this business was totally unorganized. This business was considered a kiosk business rather than an organized one till late 1990’s. Ramesh used to run the store, thinking that a store establishment was more than a great achievement starting from handcart days. The only difference was, the pattern of running the business models of handcart and store, Exhibit II. In a handcart type of business the revenue and cost model was very simple. The revenue came from the sale of Bhelpuri and other Chaat products, whereas the cost incurred was mostly accounted to the material cost..........

Emergence of Ganesh Bhel as Chain of Stores: 1995-2005

Dinesh (with his brother Rupesh) grew up watching the growth of Ganesh Bhel from handcart days to first outlet and many more outlets. Although Dinesh saw the product quality success in the last few years at Ganesh Bhel inherited from his father, he was also very much obsessed with quality. His quality obsession could be seen in his metallic visiting card that he created for his company. “People should be sure of my quality even by looking at my visiting card”, he said. He had been a diehard quality advocator since he matured in business.............

The Clash of Generational Paradigm

Ganesh Bhel business model was based on the assumption that consumers liked the Bhel products for their taste. The whole mindset of the outlet employees was about selling the Bhelpuri products. Dinesh used to foresee how this business would run successfully based on the service quality than the product quality alone. So the mindset clash was evident and went on for quite some time. There were issues from the earlier generation like why think about service quality when the business was fine. The challenge for Dinesh was about tapping the changing trends of consumer mindset towards service quality along with the product quality............

The Path Breaking Start: 2005-2015

For the last many years Dinesh saw many happy customers coming to Ganesh Bhel buying variety of Bhelpuri and Chaat Items, Exhibit VI. He also keenly observed many customers across Pune buying the ready to eat Bhelpuri packets to eat at home. Having the best brand in Bhelpuri products made him more anxious about why these people were not buying Bhelpuri from his service outlet of Ganesh Bhel.

After his analysis of this phenomenon he found that they were looking for the same taste homemade. This gave him a great insight to his one-sided vision of outlet based expansion strategy for Ganesh Bhel with the opportunity of distribution. So Dinesh developed new ways of marketing and brand building for Ganesh Bhel like leveraging festivals and Marathi film celebrities............

Changes in Business Model of Ganesh Bhel:

The new development in the Bhelpuri business was about packaging and sophistication in store ambience driven by the new consumer fast food preferences of India. The street Bhel stalls were considered as unhygienic and old fashioned...........

Making History by adding ISO Certification:

Under the leadership of the new team, Ganesh Bhel went for the first ever ISO 9001:2008 certification by any Bhelpuri business organization in India. This helped them to keep check on the processes and standard operating processes...........

New Philosophy

1. Bhelpuri business should be changed the way it was done towards a world class service experience

2. Brand and not only product should be focused

3. ..................

Industry Outlook

The consumer spending on processed food had increased at an average rate of 7.6% annually from 2008 to 2010 and expected to rise at an average of around 8.6% until 2012, according to a report by ASSOCHAM (Associated Chambers of Commerce and Industry in India).8 The INR18,673 billion (USD 401 billion) Indian retail market entailed only 6% of itself as organized retail segment as of 2010, according to Booz and Co (India) Pvt. Ltd. Hence, there was a great potential to be explored by domestic and international players............

The Changing Fast-Food Consumers

The fast food habits of the Indians witnessed a big change in last few decades. From homemade food, customers have radically shifted towards readymade fast food products. This food was also termed as junk food. The main feature of this category of food was the heavy fat content in all the product range. But in the recent decade even the approach towards the fast food has changed with a health perspective in it. Quality and hygiene was considered as major factor for buying fast food from market............

The Key Competition in Bhelpuri Segment:

Kalyan Bhel, a renowned Bhel and Chaat snack house operating in Pune since last 30 years, operate in 6 outlets across Pune city and majorly focuses on the consumers and catering orders for events. The founder of Kalyan Bhel Mr. Rameshbhau also happens to be a good friend of Ganesh Bhel family, who also believed in the traditional model of business (where the focus is more on the product quality rather than on the service quality)...........

New Challenges at Ganesh Bhel & Chaat Products Pvt. Ltd:

Dinesh and his team figured out following challenges to overcome with respect to grow in future, Exhibit XII:

1. Finding the suite of management training
2. A vision for the new age business model
3. Unskilled and untrained manpower was a major HR challenge.
4................

The Growth Alternatives

During 2015, Dinesh called up on an important meeting so that they could brainstorm on designing the roadmap for developing marketing strategy for expansion. The point of focus was: What should be the growth strategy for Ganesh Bhel out of available options, drawn out of an exhaustive brainstorming? The meeting had the final level discussion agenda with a determination to make Ganesh Bhel a national player (fast food organization of world class level).........

Assignment Questions

I. Analyze the service quality parameters of Ganesh Bhel Vs other top QSRs (Quick Service Restaurants).
II. Find out the service quality improvement areas in 3 service P’s for Ganesh Bhel.
III...........

Exhibits

Exhibit I: Marketing and Brand Building at Ganesh Bhel

Exhibit II: Comparative Chart of Marketing of Ganesh Bhel Store vs Traditional Bhel Outlet

Exhibit III: Sample Comparative Data of Key QSRs in Pune City

Exhibit IV: Milestones of Ganesh Bhel

Exhibit V: Changing Fast Food Services Scenario

Exhibit VI: Major Ganesh Bhel Products

Exhibit VII: Organization structure of Ganesh Bhel & Chaat Pvt. Ltd.

Exhibit VIII: Ganesh Bhel’s Business Models

Exhibit IX: Food Retail Sector Scenario in India

Exhibit X: Customers Preferences for Fast Food Services (Rating 0-10)

Exhibit XI: Distribution Parameters and Major Competitors in the Bhelpuri Distribution Segment for Ganesh Bhel

Exhibit XII: Pricing of Select Ganesh Bhel Products

Teaching Note Preview

Marketing Strategy at Ganesh Bhel & Chaat Products Pvt. Ltd.

 

Synopsis

Ganesh Bhel has come long way from being a roadside Bhel and fast food retailer to becoming a reputed brand as an organized QSR retailer. The challenge in front of the owner brothers is about bringing the world class service quality standards in all the Ganesh Bhel outlets existing and the future ones. The focus of the owner brothers and MD of Ganesh Bhel, Rupesh Gudmewar and Dinesh Gudmewar is on service P’s and the service design quality to drive the service quality towards world class level. Ganesh Bhel’s business challenge is to meet the service levels of the global peers in this field like McDonalds. Another dimension in the business is to make it a national player by taking it forward through possible distribution strategy. So the case discussion goes on exploring the better options by weaving the pros and cons along side the discussion.

Pedagogical Objectives

• To understand the evolution of Ganesh Bhel’s business model and factors driving its business model
• To understand the marketing challenges of evolving companies for products and services marketing
• To analyze factors for developing the distribution strategy and retail strategy for managing growth
• To understand the growth challenges of growing organizations from SME level to next levels of growth

Case Setting and Positioning

This case study can be taught for service marketing, marketing strategy, new product development, retail operations etc. in MBA courses.

Mandatory Reading

• Swapna Pradhan, “Retailing Management: Text and Case”, 4th Edition, McGraw Hill Education, 2012
• www.ganeshbhel.com
• Harsh V. Verma, “Services Marketing: Text and Cases”, 2nd Edition, Pearson Education Inc., 2009
• Retail Sector report 2016- IBEF
• Philip Kotler, Kevin Lane Keller, “Marketing Management”, 15th Edition, Prentice Hall, 2016"
• Michael E. Porter, “Competitive Strategy: Techniques for Analyzing Industries and Competitors”, The Free Press, 1998

Assignment Questions

I. Analyze the service quality parameters of Ganesh Bhel Vs other top QSRs (Quick Service Restaurants).
II. Find out the service quality improvement areas in 3 service P’s for Ganesh Bhel.
III...........

...............................

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Abstract

Indian fast-food service retail industry witnessed sea change in the consumer preferences, since the start of the first decade of this century. The impact of this change was evident in the way services at Ganesh Bhel transformed, which was the most popular destination for its taste of Bhelpuri and other chaat products (A popular traditional Indian tasty and spicy fast food category). In August 2015, at the Ganesh Bhel Head office, Ganesh Bhel management team was going through discussion with Mr. Dinesh Gudmewar, (Director of Ganesh Bhel & Chaat Products Pvt. Ltd) for transforming it from a commodity business into an organized enterprise.

Mr. Dinesh wanted Ganesh Bhel to evolve in to a world class and pan India organization with strong brand name, synonymous to taste and quality. Apart from other challenges of paucity of resources, the major challenge for the founder was to convince his family whether this could be made a reality, as nobody in Bhelpuri business envisioned this before in Pune. The market trend exhibited about the changing consumers taste maturing from mere better quality products and for better service quality as well. Ganesh Bhel had come a long way from a roadside vendor of 1978 to a famous Bhelpuri and Chaat based fast-food store chain. Their business model needed right marketing strategy to turn their dreams of creating an organized fast food service retail company in to reality. It was a critical time for Ganesh Bhel management team to prepare a right marketing strategy for the future growth.

This case study is about overcoming this dilemma of the major decision of spreading wings in to pan India markets and how? Whether to go national by creating more outlets or by distribution? Which distribution strategy would be right fit for Ganesh Bhel & Chaat Products Pvt. Ltd? The case study unfolds various factors for finalizing this major decision of a new evolving business model along with the evolution of a young second generation businessman from early days towards the growth stage. The case study revolves around the marketing transformation of Ganesh Bhel from a local Bhelpuri vendor into an established fast-food retail organization (in Bhelpuri segment) and “Best Bhelpuri Award” by Red FM 93.5 channel. Now Ganesh Bhel management team plans to expand nationally. The case gives opportunity to analyze dilemma of developing marketing strategy for turning small enterprises in to a successful national player.



Pedagogical Objectives

  • To understand the evolution of Ganesh Bhel’s business model and factors driving its business model
  • To understand the marketing challenges of evolving companies for products and services marketing
  • To analyze factors for developing the distribution strategy and retail strategy for managing growth
  • To understand the growth challenges of growing organizations from SME level to next levels of growth

Case Setting and Positioning

This case study can be taught for service marketing, marketing strategy, new product development, retail operations etc. in MBA courses.

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