Kapila Krishi Udyog Limited

Name: Kapila Krishi Udyog Limited (English version)
SKU: CMA0822

Singh, Kunwar Milind; Singh, Sukhpal

Product #:CMA0822

Supplier:Indian Institute of Management Ahmedabad

Discipline:Marketing

Details:Case (PDF) • 15 pages • 2021-05-31

Subjects:

Market segmentation Growth strategy Marketing Corporate strategy Sales and marketing Marketing

Industries:

Agriculture sector

Your Price:

$9.71

Purchase this material with a free Educator Account and enjoy more benefits:

Free Educator Copy
Free Teaching Notes
Build your coursepack
Discounted academic price

Kapila Krishi Udyog Limited, a Kanpur-based cattle feed manufacturer, was the market leader in the organised cattle feed market in North India. The organised cattle feed market was estimated at around 17–18% of India’s cattle feed market. The product was commodity type and had demand mainly in rural and semiurban areas. Traditionally, Kapila Krishi had a market presence in Uttar Pradesh and Bihar, but later, it moved to Punjab and Haryana. It faced competition from national and international brands in the cattle feed market besides competing with many unorganised players. Kapila Krishi saw a decline in its year-on-year revenue growth in 2018–19, but it simultaneously witnessed a massive increase in promotional expenses. The decline in Kapila’s revenue growth could be traced to a changing competitive market scenario and unawareness among customers towards market-based cattle feed, besides a lack of strategic fit between market segmentation and marketing mix and a shift in the promotional and distribution strategy. Sameer Shivhare, Director, Kapila Krishi, was concerned with this development and was pondering to prepare a business plan to bring a reversal in declining revenue growth and ensure a steady growth in the business. He had to present the plan in the next board meeting.

Learning Objectives

The case discusses a shift in the market structure in the cattle feed market and subsequent marketing mix challenges. Broadly, the case will help participants understand market challenges in an increasingly competitive commoditised product market and evaluate alternative business plans to develop a business model for a family-managed business. The specific objectives are as follows: To understand the market challenges in the cattle feed business due to a shift towards the organised sector from an unorganised sector shaped by a changing competitive environment; to formulate market segmentation and an optimal marketing mix strategy in the organised cattle feed market; to decide the trade-off between below-the-line (BTL) promotion and branding/advertisement with a consequent distribution strategy; to analyse alternative business plans for the family-managed business to ensure steady growth in the business.