NFL’s Scoofles: Scooped with Marketing Research Problem?
The Delhi headquarters of National Foods Limited (NFL) was abuzz with activity. The regular quarterly strategy meeting of Senior Managers was on, in the boardroom. Only this time it was not a regular meeting. It would be an understatement to say that the mood was despondent.
NFL had, at the end of the 3rd quarter of 2003 launched their new product ‘Scoofles’ with much fanfare. Scoofles was described as “The best biscuit that man can buy for his best friend”. It was for the first time that the company, known for its biscuits and other baked products, ventured into pet food market beyond their traditional market. The initial sales overshot the company’s projected figures, but soon fell drastically.
NFL established its bakery business in the early 70’s. Reservation of the biscuit industry for the small scale sector in 1977 had initially caused a setback for the company, but soon overcame by using the sub-contract manufacturing. NFL was therefore able to focus more on marketing and creating a brand image. By the time the Government again de-reserved the industry, in 1997, NFL had built up a formidable marketing and distribution network across the country. Soon after de-reservation the company went in for own manufacturing and put up state-of-art plants in the four major metros (Delhi, Mumbai, Chennai and Bangalore). De-reservation also brought in its wake the multinational suppliers. The entry of multinational players such as SmithKline Consumer, Kellogg, Sara Lee, Heinz, Excelsia (Nestle) and United Biscuits, however, did not pose a direct threat to NFL as the MNCs positioned their products in the premium/health segment. NFL started serving the rural markets with small pack sizes at lower price points. In fact, NFL managed to retain its leadership position in the domestic market..............
Assignment Questions
I. How would you define NFL’s Marketing Research Problem with the help of the following:
a. Discussion with Decision-makers
b. Interview with Experts
c. Secondary Data Analysis
d. Qualitative Research
II. What would be the relevant environmental factors that affect NFL’s Marketing Research Problem definition and what would be their impact?
III........................
Exhibits
Exhibit I: NFL’s FinancialsQuarterly Sales Breakup – Scoofles
Exhibit II: Report on Competition
Exhibit III (a): Market Shares of Pet Food Companies in India (2003-2004)
Exhibit III (b): Retail Prices of Few Domestic Pet Foods Brands in India (2003-2004)