VNFPP Case Analysis (Group 7)

1. What challenges can be anticipated by VNFP in the transformation from a bulk

supplier of processed vegetables(B2B) to a canner/bottler(B2C)?
Answer: The following are the challenges that VNFP can face due to transforming from
bulk supplier (B2B) to a canner(B2C):
● Bottling and canning the products to be comparable to foreign products will
be a challenge
● Internal and customer mindset need to be changed to believe that
customers are the key to success
● There is no direct contact with the intermediaries due to which the current
market knowledge is less
● Due to continuously changing technology and advancement, the product
needs to be diversified and in line with the modern technologies
● Creating awareness of the product in the seemingly undeveloped market is
going to be a costly affair.
● VNFPP will require a lot of time establish its credibility since they are a new
entrant.
● Creation of the primary demand for the offering rather than focusing on
competitive measures is going to be a difficult task.
● Lemoneez, one of Dabur's Hommade portfolio of food products, was
already trying to create a market for itself.
● Restructuring the existing organizational layout to implement B2C approach
is the biggest challenge.
2. What kind of marketing organization structure would be suitable for the
transformation?
Answer: VNFP can use marketing mix strategy for the transformation.
a) Product
-Introduction of new line of products. The leftover lemons were processed
and sold in different form
- Introducing new varieties of canned beverages based on the local
preferences and tastes
- VNFP can try repositioning its existing product with new line
b) Price
- Due to saturation in the market VNFP have limited its exports and faced
competitive pricing from other nations
- VNFP can introduce new products at accessible rates to increase
customer base and then once the product is well-established, they can
increase the price
c) Place
 - VNFP planned to target IT personnel and their families who have stayed
abroad and came back to India
- Introduction of product in malls and multiplexes
- It can reach directly to its customers by selling its products online or selling
it in the stores
d) Promotion
- VNFP can persuade its customers by making advertisements which
conveys the differentiating feature of the product, the price of the product,
availability of the product and its effective use
- It can also use social media to convey its message to the targeted
audience
Shift from Product Orientation to Market Orientation which will include customer
orientation and competitor orientation.
3. Which factors are important to the company? How can these factors help the
company to compete better in the market?
Answer: The factors important to the company are as follows:
SWOT Analysis
Strengths:
● Already established relationships with the suppliers
● Expert opinions from his friends based on their market knowledge
● Bottling and Canning Factory may prove out to be a huge advantage over
its competitors
● Passionate about the business and food products in general
Weaknesses: • New entrant in the market and has to compete against already established
players
● Have to incur huge cost in R&D
● No previous customer database in the domestic markets so a start from
scratch
Opportunities:
● Revamp company’s sales and margins by capping domestic markets
● Can introduce more flavors and variants and can also play on customers
taste for such preferences
Threats:
● A lucrative market for more competitors to enter
● Dabur may execute a price reduction in order to put us out
● Changing taste and preferences of the customers can turn out to be a huge
threat for our newly formed products
● Conservative Indian society has a thought process where they don't prefer
canned items and doubt them to be harmful. So, such social factors are
important to be dealt