FOOD STORAGE INDIA
In India about 40% of all potatoes are lost in the chain. 50% of this loss occurs during food storage. In merely a few years, India has grown from the 5th to the 2nd largest potato producing nation in the world. Our customer provides food storage facilities that reduces the food losses during storage. EUNITE acquired a grant ‘food storage India’ that resulted in a strong and long lasting market position in India.
Our customer has been active in the food chain over 100 years and an internationally recognised brand. Its food storage products are found in developed markets as well as in emerging markets, serviced with different distribution models. India has been serviced on a very limited scale.
Deploying our customer’s solutions, would result in an efficiency increase of about 50%. In India this massive reduction of potato losses would result in direct benefits to all potato chain partners: from farmers to storage owners and from the processing industry to consumers. The latter would witness a decrease of potato prices. These efficiency benefits are also witnessed in a lower energy consumption (being fully in compliance with India’s energy policy) and in environmental benefits.
STRATEGIC ROADMAP FOOD STORAGE INDIA
Taken the large opportunity India offered and the fact our customer’s proposition is the best matching solution to the problem, India became the top priority in our customer’s expansion strategy. The strategy is based on creating awareness in the Indian market. This will be realised by having the local Indian market experience the added value in practice at several pilot projects. EUNITE requested a Dutch grant that would assure the expansion strategy would have an optimum ROI.
Our acquired grant for ”food storage India” consisted of three main topics, namely:
- Effective market positioning;
- Funding and granting facilities in India;
- Optimal marketing mix.
EFFECTIVE MARKET POSITIONING
Although our customer’s strategy is based on creating awareness about its added value, it simply is not feasible to apply this strategy to the entire market in India. In total about 800 million farmers, about 6,000 storage owners and ca. 250 potato processing companies are present in India. The first step was to segment the market in ‘A, B and C’ classes. Next the marketing efforts would be concentrated on the most promising classed companies ‘only’, which in India still consists of about 6,300 (+) companies and many more decision makers.
FUNDING AND GRANTING FACILITIES FOR FOOD STORAGE IN INDIA
The solutions of our customer require significant investments, which always is complicated. Such capital investments also always result into ‘ROI discussions’ and prove to be rather challenging to control. Knowledge over local funding possibilities lowers such discussions. An important part of the grant thus consisted of acquiring knowledge of the available funding possibilities. These consisted of private, public funding, national grants, regional subsidies and local grants. In addition this also included theme related incentives, such as rural funds, food security programs, energy efficiency grants, environmental grants etc.
OPTIMAL MARKETING MIX
Finally the grant consisted of defining the optimal marketing mix for India. Examples were answers to questions such as ‘what is the best promotion strategy for India’, ‘how do we have to adapt our pricing strategy to comply to Indian grants and funding requirements’, ‘how should we include Indian funding services in our portfolio’ etc.