Rebel Foods Steers Clear Of Discount Wars To Focus On Product And Pricing Tiers




Rebel Foods Steers Clear Of Discount Wars To Focus On Product And Pricing Tiers

Rebel Foods’ Kallol Banerjee said the company is trying to double down on lots of its classes to make certain market success and pass beyond the discount-led competition

So a long way, this approach has been used by Rebel for its biryani-focussed manufacturers — Behrouz Biryani and The Biryani Life — with plans to do the equal across its brands

Rebel is banking on developing new labels from the identical kitchen to better compete with rivals without sacrificing unit economics with discounts

Even as India’s restaurant and food retail industry scrambles to get better after the Covid-19 lockdown, the meals shipping and aggregator consciousness has squarely been on cloud kitchens. And inside this extremely-competitive space, cloud kitchen soonicorn Rebel Foods is looking to put some distance among itself and its opponents. 

With a focus on age-old FMCG fulfillment strategy, Rebel Foods is seeking to double down on many of its classes — actually — to make sure market success and circulate past the bargain-led opposition. Cofounder Kallol Banerjee told cft that the enterprise is trying to create stages within its numerous manufacturers and food categories to better compete with competitors at complete rate. 

“We can react to any form of opposition or any new meals fashion right away as it is all a virtual play.” 

The approach right here is product flanking, that is a competitive advertising and marketing approach in which a organisation produces its manufacturers in a selection of sizes and styles to advantage shelf area and inhibit competitors. In the case of Rebel, the flanking comes from the creation of various manufacturers and products at specific charges to cowl as many market segments as possible. It is essentially offering the identical product in different sizes and price combinations to faucet various marketplace opportunities. 

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This has been a key approach for FMCG manufacturers in scaling up and the a hit implementation of this has already been completed by using major brands like Mercedes-Benz against General Motors, electronics massive Samsung and Xiaomi in their opposition in India as well as different categories in which there is heavy opposition which include alcohol and tobacco manufacturers. 

Rather than competing head-on and trying to crack the proper pricing, Rebel is going for a marketplace penetration approach. It’s competitors can both provide premium best or discounts, but it’s covering each bases at the same time as lowering coins burn.

Banerjee informed us that as the emblem turns into popular, it starts offevolved to look competitive stress. To address this, Rebel Foods adopted a class view. Here, the business enterprise determined to divide its manufacturers into two— a electricity brand and an energetic emblem. The idea is straightforward— maintain a strength brand to be the premium participant and an lively logo to wage discount conflict.

For the uninitiated, the Pune-based organization changed into based through Jaydeep Barman and Kallol Banerjee in 2010. It operates a couple of quick-service meals brands independently, facilitating deliveries through its app or thru online food shipping systems like Zomato and Swiggy. The agency generates 50% of its needs through Zomato and Swiggy. It has 12 in-residence manufacturers which include Faasos, Oven Story, Firangi Bake and Mandarin Oak. 

Banerjee explains that the enterprise has  biryani-focussed manufacturers— Behrouz Biryani and The Biryani Life, which is priced extensively lower than Behrouz. This manner, Behrouz does now not have to lower its fee points to compete.

Rebel Foods Steers Clear Of Discount Wars To Focus On Product And Pricing Tiers

Rebel admits that the competitors inside the biryani area had been piling on a variety of strain thru cut price — specially manufacturers consisting of Biryani by using Kilo and other shipping-best manufacturers. 

“We don’t play the discounting recreation with Behrouz, so we permit Biryani Life do that. If we look at a complete category, we should have a certain percentage of the class, for the emblem we are going to preserve top class. So the strength manufacturers are wherein we would be doing the TV advertisements, we talk and extra, but the lively brand is just meant to compete on reductions and greater,” Banerjee introduced.

As it sees extra opposition in a specific category, Rebel is just developing a brand new label from the same kitchen similar to how an assembly line works. The employer modifications product portions, refines the flavor to fit the audience and greater, but the manner is similar to starting a new kitchen, that can even be scaled to a countrywide brand. “We can react to any form of opposition or any new food trend very, right away because maximum of the work is virtual, it’s accomplished in a single region in half-hour. So the relaxation is training humans and all of that which takes time. But that’s the benefit of cloud generally,” he added.

At present, visibly the organisation has put the approach to use for its biryani brands, however with its array of 12 manufacturers already, with numerous others in the pipeline, it may constructively placed the equal strategy for different manufacturers. For example, with its emblem Oven Story, the enterprise competes with the likes of Dominos’, Pizza Hut, Pizza On My Plate, and greater; at the same time as for its coffee logo Slay Coffee, it is competing with the likes of Starbucks, Cafe Coffee Day, Blue Tokai and greater.

Banerjee showed that on the basis of patron response, the corporation will put into effect it in addition going ahead.

Rebel Foods Steers Clear Of Discount Wars To Focus On Product And Pricing Tiers

While this isn’t a completely unique method, and other players can leverage this, they would need a stronger presence and reach like Rebel Foods, which also involves huge operational funding. “You will need to placed within the attempt to put within the time, which can not be quick-circuited. You need to install 300 kitchens, to construct a countrywide brand and three hundred kitchens need time, to place the three hundred kitchens and team of workers, education and many others,” Banerjee said approximately the moat Rebel has made. 

With over $342.3Mn raised till date from investors like Coatue Management, Go-Jek, and Goldman Sachs amongst others. Clearly, it has a big amount of capital at disposal to select this strategy, not like its peers. However, the company has robust competition from food aggregators like Zomato and Swiggy, who also have their personal network of cloud kitchens. At the same time, other players in the cloud kitchen space encompass Ola Foods, FreshMenu, Box8, QSR Foods among others.

He noted, “Nothing that we do for my part is some thing that can not be copied or replicated. But to make the whole lot paintings you will nevertheless want to spend plenty of time, which we did.”

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Banerjee is likewise confident of pulling off more moderen projects as those are “simply some other play”. For example, the enterprise is working on a meal package product and Banerjee is assured of cracking the marketplace which numerous others have didn't. He additionally referred to that there are numerous examples of screw ups— Blue Apron, Fingerlix and greater. Till now, the prepared-to-consume market has normally struggled to grow in the right direction amid large FMCG gamers. For example, Yumlane, which commenced in 2016 to sell frozen pizzas, determined to pivot to the cloud kitchen model at the same time as any other player, Fingerlix has been suffering with restrained products available on Amazon and the website has disappeared.

Many of those groups may have failed due to the fact meal kits had been the most effective thing they have been doing. For Rebel Foods, RTE is simply one of the many things to do and as a result, lack of dependency on adoption. What works for Rebel, as in line with Banerjee, is its kitchen and deliver chain network. 

“So this is for us simply any other play, which we will execute very without problems. We can paintings with our supply chain guys to make, allow’s say a 200-gram rice pouch. Now that isn't always some thing that they may entertain until you deliver them a certain fee. So, these are matters which can be clean for us to do. And glaringly, we don’t think that shipping-most effective proposition in itself might be smooth to pull off. But it’s the aggregate of another possibility that I assume we're high-quality positioned to do,” he introduced.



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