REITZEL INDIA

LEARNING THROUGH
ALTERNATIVE PEDAGOGIES

FAS GROUP 3 C2
SECTION 1
INTRODUCTION TO THE CASE-

Company’s current situation and business environment in India :

 Reitzel India Private Limited (“Reitzel India”), a subsidiary of Reitzel (Suisse)
Switzerland started its operations in India in Bangalore in 2003 mainly to
source process and export
 In 2013 Reitzel India decided to market its products in India.
 Its Indian Business Head Mr Vijay Kumar is in a dilemma whether to continue
to market the current product line up and pricing or adapt them to Indian
conditions. He is also in a dilemma whether to target the high end restaurants
or target the end consumer
 Product range included Gherkins, Jalapenos, Organic olive oils, flavoured
vinegars, burger chips, mustard paste offered to both B2B and B2C
 Currently has a manufacturing facility in Kunigal Karnataka near Bangalore,
good to cultivate jalapenos
 It concentrates on quality , innovation and sustainable development., BRIC
and IFS certified.
 No difference between the products sold in India and Europe
 Currently selling products in India are four different types of gherkins namely
classic gherkins, premium gherkins, cornichons in chili and gherkins sweet
and sour. There are two types of jalapenos for the Indian market sliced and
whole jalapeno
 Its sales team has indicated that the Company needs to look into competitive
pricing, since currently the prices are too high to enter the market
 Currently restaurants buy from multiple vendors so there is an opportunity for
entering the market by competitive pricing .
 Current incumbents have large market share and have control over
distribution network
 Currently the market is not quality sensitive but price sensitive.
 Its sales volume is currently very less, the company didn’t receive any bulk
orders in the past year
 QUESTION AND ANSWER

QUESTION 1-

On the basis of discussion of the case done in the class do you think that the
company should go in for B2B or B2C ? 

Analysi
Pros Cons
s
 Already there is chef’s  Price sensitivity
preference in the future  it involves multiple
 Specialty restaurants already stakeholders in the decision
B2B use them chain
 It can attract bulk orders    Brand visibility is less
 Requires lesser marketing costs  Reitzel is competing with
established players and
distributers.

 Larger Market to target  Cultural barrier, yet to develop

 Emotional purchase tendency of a taste in this product
the consumer can be capitalized
 Shelf life is less so retailers are
for driving sales volumes
B2C
 It’s easier to get feedback from reluctant to store them for long
consumers and form a time
relationship. 
 Incurs higher marketing costs
 Brand awareness and reach is
better     Product differentiation is
 Localized marketing difficult.

As Rietzel wants to establish its market in India after analyzing all the points we
believe that Rietzel should get into a B2C distribution because of the following
points-

1. Emotional investment:-End consumers are easier to convince via sensible

advertising which can trigger the emotional sentiment in them and make them
buy the product. This technique is age old and has been exploited by many
 brands over the years. They may be moved to relate the product with their
lives. In this way, the brand can target and achieve a major chunk of the
society.
Example: Cadbury India came up with a "Kuch meetha ho jaye"
advertisement focusing on the Indian custom of having a sweet before
celebrating an auspicious event. This drove a large force of consumer base
and this move was considered and acknowledged as one of the best
advertisements.

2. Feedback Process:-B2C consumers are single entities, who can

communicate their feedback easily with the company via a given medium. So
it is easier to build relationship within both the parties involved, whereas B2B
involves multiple stakeholders and their multiple purchasing decisions, which
slows down the feedback time and hence is more complex and time
consuming to form a relationship.
3. Large Market to target- In B2B we have a niche market to target, which
includes few European and Italian outlets in India. But in a B2C market even if
we market the product to the 20% of the population of 1.35 billion people, we
will have a huge consumer base.
As we can see in the fig A the higher income group will form a significant
portion of the population and since they will be the first ones to come in
contact with western influence. It makes a prudent case to target this
particular segment. On top of this the market will spread form tier I cities
initially to tier 2 or even possibly to tier 3 cities
 Fig 1
Source BCG- https://www.bcg.com/en-in/publications/2017/marketing-sales-globalization-
new-indian-changing-consume

4. Brand awareness & Localized Branding : It’ll be relatively easier to create

awareness about the Reitzel’s products and position itself as a nutritional
brand by having celebrity chefs to endorse it. Gherkins can be marketed as a
quick ingredient to be used in different dishes across India and specifically
regions like Goa that have foreign influence in their foods. Mustard paste can
be marketed in eastern States of India where fish is consumed.
Example- In 2007 Quaker Oats entered the Indian market by positioning itself
as a healthy breakfast and localizing its product according to the Indian taste
like the Masala oats.

QUESTION 2

Prepare a Step wise plan for the launch of Reitzel Products in India –

MARKET STP ANALYSIS PRODUCT

ANALYSIS

SUSTAINABLE PRICE
PROMOTIONS PLACE
DEVELOPMENT
MISSION: To respect and transform vegetables into delicious pickled. products for a
healthy, happy diet! 
USP : Offer healthy food with an Indian twist.

LOGO:

MARKET ANALYSIS-
 Cultural food barriers: Indians prefer their food cooked but most of Reitzel ‘s
product are consumed raw and cold. Indian food uses a mix of spices which adds
a complex flavour to all its dishes but most products sold by Rietzel do not agree
with the taste that Indian’s are accustomed to.Also, the staple products used in
Indian are grains and rice. We have a variety of flatbreads and rice and meat are
staple part of Indian diets, Rietzel’s products cannot be consumed with these
staples.
 Low demand: Products are not widely in demand in India. They are mainly used
in high end restaurants or fast food chains like Pizza hut and dominos
 High pricing: Pricing of Products manufactured by Rietzel India is higher than
those of its competitors.
 Saturated Market: Majority of products by Rietzel face competition from already
established players in the market.

SEGMENTATION,TARGETING AND POSITIONING

SEGMENTATION- Initially we will have a B2C distribution and bringing up localized
flavors to meet the Indian taste buds. We are segmenting our market base on the
basis of Cultural divide that is on the bases of differences with regard to
psychological behavior, thinking, taste and preferences. It can be segmented–
On the basis of form, nature, distribution channel, and region-

On the basis of form- the above market is segmented into processed, dry and raw.
The processed sub-segment is further sub-segmented into pickles, baked chips,
sauce, and others.
On the basis of nature- it is segmented into organic and conventional
On the basis of the distribution channel- Jalapeno pepper market is segmented into
direct and indirect sales. Indirect sales can be sub-segmented into modern trade,
specialty stores, online retail.
On the basis of region- it is segmented locality wise according to the regional taste.
For example in Goa there is a Portuguese influence so the market of vinegar will be
high, Similarly in West Bengal demand for mustard with fish will be high.

TARGETING- Modern working population, younger generation, Health freaks.

Higher income groups, Upper middle class, Millennials and Gen Z .Who are
constantly coming under the influence of Western cuisine.

POSITIONING- Localized Branding according to the taste buds of India and

promoting as a healthy food.
MARKETING MIX

Source- Internet

PRODUCT-

Product line up for the Indian Palate  

1. Gherkins chips (Cornichons with chilies, Burger chips)
2. Baked Jalapenos and onions
3. Baby corn chips
4. Original old style Mustard
5. Vinegar-
6. Olives
 
PRICING-
Since it is a case of oligopolistic competition where a few number of sellers are
present where each player is dominating the market and the product cannot be
differentiated to a great extent, Penetration pricing strategy will be applied in the
beginning phases as the market that Reitzel is entering is dominated by incumbents
and not fully explored. Pricing will be kept to a lower margin in the beginning to
capture the market share and once this objective is achieved, the pricing will be
increased to earn greater profits.

Some of our product description with prices after comparing it with our competitor.

 Gherkins –
 Shelf life- 36 months
 Jar size- 720 ml
 Price- Rs 44/100ml

 Baked Jalapenos and onions-

 Shelf life- 36 months
 Jar size- 670g
 Price- Rs 40/ 100g
 Baby corn -
 Shelf life- 36 months
 Jar size- 270g
 Price- Rs 48/100g

 Original old style Mustard-

 Shelf life- 18 months
 Jar size- 270ml
 Price- Rs 45/100ml
 Vinegar-
 Shelf life- 36 months
 Jar size- 360ml
 Price- Rs 20/100ml
 Black Olives-
 Shelf life- 24months
 Jar size- 450g
 Price- Rs. 49.8 / 100g
PROMOTION-
Our promotional strategies pre and post launch will be as follows-

1. Has nutritional value and can be marked as a healthier option: The

present working generation which comprises majority of the consumers of the
exotic foods are motivated by the tag ‘ A healthy life is a happy life’, so they
prefer foods which has high nutritional value over other alternatives. Reitzel,
thus can capitalise on this market and will have a good chance of market
penetration with its healthy options.
a. Gherkins chips (Cornichons with chilies, Burger chips)- Vitamins,
antioxidant and hydration.
b. Baked Jalapenos and onions- rich in vitamin A and C and potassium
c. Baby corn chips- Rich in Vitamin A
d. Original old style Mustard- Good for heart and rich in vitamin K
e. Vinegar- Reduces cholesterol and antimicrobial properties
f. Olives- weight loss and rich in vitamin K
2. Conducting events , social media campaigns and advertising: Social
Referrals through influencers on Instagram, LinkedIn, Twitter. Conducting
online live shows through You Tube and other social media platforms for
understanding the making of these products by special celebrity chefs. Hiring
nutritionists and famous fitness freaks to promote the nutritional value
attached with each product
3. Localized branding that cater to the local cuisine can also be adapted:
The company can also promote their products near institutions and local
areas to cater the local cuisine and advise them to inculcate these products
into their food preparations.
4. Free sampling campaign in metro cities to begin with, in super market
chains: The products can be promoted by providing free samples and small
quantities to customers for free at public places like shopping malls, big retail
outlets, parks, social events and gatherings. In this way, the product's reach
will be good with a big crowd can be made aware of the product and its
quality, price and other variables.
 5. Attractive labeling: Attractive labelling could be designed that connects the
target customer that also has a recipe in which one can use the company’s
product.

PLACE-
Website store : It is beneficial for Reitzel India to opt for a website store as it is an
economical option and won't include any costs of training and very minimal costs of
selling. Also, it is an easier channel to adapt to VUCA market conditions and Reitzel
will also have a greater control over the marketing operations
E-commerce : E-commerce marketing has grown at a tremendous pace in the last
decade. It includes channels such as E-commerce websites, E-mails, social media
etc. Reitzel India can leverage this growth of E-commerce and use the above-
mentioned channels to sell its products. It also has the added advantage of higher
visibility.

Source- BCG- https://www.bcg.com/en-in/publications/2017/marketing-sales-globalization-

new-indian-changing-consume

As we can observe in the above figure that the potential for digital influence is
immense. Within span of next 5 years the digitally influenced online shoppers can
overcome the cultural barrier which can drive sales in the B2C segment if pushed
through the right influencers.

Distribution Channel for Ecommerce and webstore

Finished Dispatch
Sourcing Processing
goods are directly to
from at company
stored in online
Farmers plants
warehouses customers

This approach will simplify the supply chain and help cut down on commission to
distributers and help penetrate the market in a cost-effective manner.

SUSTAINABLE DEVELOPMENT-

• Composting: at Reitzel India, we do composting of factory crop waste, limiting the

risk of environmental pollution and we distribute this compost to the farmers to
reduce the usage of synthetic fertilizers.
• Drip Irrigation: we are facilitating the installation of drip irrigation systems towards
optimizing water consumption on the farms.
• Organic R&D Trials: we carry out trials of organic gherkin cultivation with an aim to
promote healthy eating

Source- Internet