chanakyanitie_cgn case study

7/17/2019 ChanakyaNITIE_CGN Case Study

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Case Study-NITIE

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Today’s consumers demand higher quality, variety of products and services for less cost, time

and complexity. As a result, FMCG Manufacturers and retailers across the world have recognized

that they can no longer afford to operate their businesses in the ‘traditional’ way and actions need

to be taken to re-evaluate their strategic direction. Meeting the multichannel consumer’s increasing

expectations for speed and convenience is forcing many FMCG players to revamp obsolete supply

chains designed for a single-channel world.

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BUSINESS NEED

BUSINESS CHALLENGES

• A European food major has seen a market opportunity in India for Pretzels(type of baked bread product made from dough most commonlyshaped into a twisty knot).

• With more Indians experimenting with food and open to variety ofsnacks in their diet, the company is planning to setup its plant/s insame lines as of manufacturing chips/wafers.

• Since the company sees an opportunity in the Government of India’sMake-in-India initiative in Food processing sector; they look upon

NITIE as one of the institutions to achieve their goal of making India asa global manufacturing base.

• They expect NITIE Graduates to design the Supply Chain strategy

model for the production of the new proposed launch of Pretzels.

Case Study-NITIE

Today’s FMCG companies are contending with increasingly difficult external

forces, essentially driven by a population of sophisticated consumers

demanding ‘more for less’.


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Case Study-NITIE

• They would like people to take part in celebrations for a fun loving snack and even more so when

they can snag a pretzel for a bargain -- or for free.

• By offering limited-time offers like a free soft pretzel on National Pretzel Day (April 26), it is planning

to entice customers to its kiosk or store, generating traffic, inviting feedback and sales of pretzels

while boosting visibility of its brand.

The company is planning to position the product to Tier-1

population of Indian Subcontinent.

• As per survey consumers have varied tastes; some prefer it Salty and some to be sweet. Company

plans to launch nontraditional flavors such as Regular,honey mustard & onion, Sea Salt and Cracked

Pepper, Almond Crunch, Cinnamon butter and Peanut Butter however there is a lot of variation

amongst various listed SKU’s

VARIETY

Company plans to launch 16 avors/SKUwhich the suits Indian requirements.

PRODUCT POSITIONING


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Case Study-NITIE

FORECAST

PRODUCT SHELF LIFE

• The unique, two looped, knot shape of a pretzel is one of its dening characteristics.

• The typical pretzel has a pleasant cracker-like avor, a crisp, brittle texture and a brown glossy

surface color.

• Salt crystals are often sprinkled on its surface to make them taste more appealing. Pretzels have

moisture content of anywhere from

These numbers capture dozens of demographic variables such as age, gender, marital status,

weight and education. There is still an uncertainty of the volumes since the response from the Indian

consumer is much unknown for Pretzels.

Design the operations strategy and end to end supply chain strategy for this organization

keeping below points into consideration:-

2-4% and therefore have a very long

shelf life of 6-8 months.

The company has forecasted to produce 1000 tons of pretzels as

their exit numbers for FY2016



Case Study-NITIE

BACKGROUND

Pretzels are a snack food, which have unique shapes and a hard, shiny outer surface. They are

mass produced using primarily automated machinery. First developed in the seventh century, pretzels

have been called one of the world’s oldest snack foods. The pretzel market has grown in recent years

because pretzels are considered a healthier, fat-free snack.

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1. Cost-Effective procurement of raw

material and packaging material

2. Manufacturing Strategy-

a. Placement of right manufacturing

facilities to meet the availability of

Pretzels- pans India.

b. Capacity and facilities (size, timings,

location

3. Demand Planning & Supply management

4. Inventory Management:

a. To make sure the Inventory is minimal and

manufacturing just-in-time since the shelf-life

of the product is 6 months.

b. Mitigate the amount of material handling in

the supply chain while boosting productivity.

5. Delivery: Channels for customer outreach

6. Recommend a high level deployment of IT tools to manage the Business requirements for the

above business in line with your operations strategy

A recent market survey found that the pretzel market in the United States

is about $560 million a year with over 300 million lb (136.2 million kg) of

pretzels and pretzel products being produced.



Case Study-NITIE

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RAW MATERIALS The primary ingredients in pretzel dough include flour, water, yeast, shortening, and sugar. Each of

the ingredients has an important effect on the dough during manufacture and the properties of the final

product.

Considering all the factors above and assuming the company has no challenges related to launch

for any of the activities in terms of budget; design an end to end Manufacturing and market strategy for

launch of Pretzels in India.

chanakyanitie_cgn case study

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