Cargill India Case Study

 Problem Identification:

Cargill India who is established in B2B in world in products and services, is now planning to expand its business into B2C Market in food category “starting with India”

Case Analysis :

Opportunity:

1. Enable company to capture market of domestic edible oil
2.  Boost global revenues for Cargill Inc which is currently less than 1 % and brand value of Cargill India.
3. If B2c works it can be replicated in different geography.
4. Scaling can be done vertically across India and horizontally  by tapping  packaged  food market like wheat flour, species.

Challenges:

• Required  specialist B2C Managers  as Cargill India has undergone fiasco in B2c in 2000
• Diversity in India: strategy of one size fits all will not work and supply chain network establishment is a challenge.
• Creating a brand value.
• India is price sensitive market
• Competition through localized and established brands.

Assumption:  We are targeting on organic market.

 Possible solution for case:

• As India population is second largest world , it provides an promising opportunity in B2C
• As Palm oil market  is  46 %  and is  most of imports are  either in crude form or in refined form Cargill India should target Palm oil as starting point for entering into B2C
• As Cargill India has good hold in importing refined edible oil of premium grade since 1990, this will help in establishing B2C market.
• Cargill India should create its Brand Value in B2C market by providing special launch discounts on its products so that public can view their products as paisa vasool product.
• Urban market is easy to penetrate , as it has better infrastructure
• Refinery should be in rural area  where populations is density high
• Replacing Ghani and utilizing its workers in refineries.
• Project Cargill brand as premium brand by Value addition in terms of health benefit
• Easy to use packaging should be there
• Marketing needs to be done at minute level. Its needs to reach the remote area , so that brand recognition can be made

Conclusion:  We can conclude that Cargill should go with B2C as it would reduce uncertainties in sales and stabilize its revenue forecasts;  keeping in  mind all the essentials and its not so fruitful experience in 2000.