| KIT: The food industry in India | |
| Sstrategic tools for the practising manager | | Technopak Advisors / New Delhi November 25, 2008, 0:14 IST | |
In 2006-07, the food industry was estimated at around Rs 8,80,000 crore.
The food processing industry is 43 per cent of the food industry in the country.
Twenty-seven per cent of the food processing industry is organised.
Staples (45 per cent), fruits and vegetables (23 per cent), and dairy account (23 per cent) are the main contributors to the food industry.
The food processing industry alone gives employment to 2 million workers.
NUGGETS
Selections from management journals
Does private-label use drive store loyalty? This question is important to retailers, as they decide how much to push private labels over national brands, and to national brand manufacturers, as they look for effective ways to both cooperate with and compete with retailers.
But empirical evidence of the association between private-label use and store loyalty is both limited and mixed. This study develops an econometric model of the relationship between a household’s private-label share and behavioural store loyalty. The model includes major drivers of these two behaviours and controls for simultaneity and nonlinearity in the relationship between them.
The authors find that private-label share significantly affects all three measures of store loyalty in the study: share of wallet, share of items purchased, and share of shopping trips. Further, store loyalty has a significant effect on private-label share. For the service chain, both effects are strongly non-monotonic. Share of wallet increases with private-label share up to a certain point and then declines.
The inversion point is at approximately 40 per cent private-label share. Private-label share also increases with share of wallet, but only up to a certain point. The effect becomes negative at approximately 50 per cent share of wallet. For the value chain, the effects are positive and nonlinear but do not exhibit non-monotonicity, because private label share has not yet reached high enough levels.
Private-label use and store loyalty
By Kusum L Ailawadi, Koen Pauwels and Jan-Benedict EM Steenkamp
Journal of Marketing Volume 72, Number 6, November 2008
Subscribe to this article at www.marketingpower.com
With 80 million registered users, Taobao.com, a subsidiary of online global trade giant Alibaba Group, is China’s largest consumer-to-consumer e-commerce company. Since its launch in 2003, it has captured close to 80 per cent of the country’s online-shopping market share. For the first half of 2008, the company recorded a trade volume of RMB 41 billion — almost the total volume for all of 2007. What are the key challenges to managing such a high-growth business in a rapidly developing market? And what potential obstacles lie ahead? China Knowledge@Wharton spoke with Zhang Yong, COO of Taobao.com, about these and other issues.
Managing an “unprecedented business” in a fast-changing market
China Knowledge@Wharton, November 2008
Read this article at http://www.knowledgeat.wharton.com.cn/
In mergers and acquisitions (M&As), brands account for significant but varying proportions of overall transaction value. The marketing literature focuses on the drivers of financial value of brands when there is no change in the ownership of brands. However, in M&As, the value of brands also depends on how their new owners might leverage them.
This study identifies both the target and the acquirer firm characteristics that affect the value of a target firm’s brands in M&As. The results indicate that both acquirer and target marketing capabilities as well as brand portfolio diversity have positive effects on a target firm’s brand value. The positive impact of acquirer brand portfolio diversity and target marketing capability is lower when the M&A is synergistic than when it is non-synergistic.
Executives who are grooming their firms for a potential M&A transaction need to be cognisant of their potential acquirers’ marketing capabilities and brand portfolio strategies.
Financial value of brands in mergers and acquisitions: Is value in the eye of the beholder?
By S Cem Bahadir, Sundar G Bharadwaj & Rajendra K Srivastava Journal of Marketing
Volume 72, Number 6, November 2008
Subscribe to this article at www.marketingpower.com
|
