FoodWorld (A): Market Entry Strategy

Abstract

RPG Enterprises, one of the top five business houses of India, decided in 1996 to enter organized food retailing by opening a chain of supermarket grocery stores under the name "FoodWorld" in Chennai, Bangalore and Hyderabad, the three major cities in south India. This case describes the background and rationale of the decision and discusses the process of arriving at key marketing decisions. Insight into consumer buying behaviour, identification of value proposition, choice of target segment, and decisions on marketing mix elements are discussed. An analyst can evaluate the decisions and the process followed by the company and examine these in the light of actual operating performance of the outlets opened till the end of 1998.