From the local to the global: the journey of Suguna Foods

Title

From the local to the global: the journey of Suguna Foods

Creator

A S.; Kumar S.; Khanna S.

Description

Learning outcomes: On completion of this case study, students will be able to understand collaboration and synergy between farmers and organisations through value creation, like fundraising, based on the comprehension of the resource-based theory; understand the overview and concept of the value chain and supply chain management in the agribusiness to reduce costs of inventories; understand the concept of segmentation and positioning to increase revenue for organisations by leveraging existing resources human and financial; and understand the branding strategy to create a sustainable competitive advantage for Suguna Foods. Case overview/synopsis: Suguna was started by two brothers, B. Soundararajan and G.B. Sundararajan, to help other farmers. Suguna, with just 200 broilers in 1984, grew to be the number 1 poultry company across India. Soundararajan was a pioneer and innovator who started contract farming in India in 1991. This model helped both the farmers and the company to became successful. The farmers always struggled to pay the cost of feed and other materials, as credit was not readily and easily available from financial institutions. Suguna helped farmers by providing feed, medicines, etc., free of cost in return for the good rearing of chickens. Because of the success of this venture, they decided to continue with it. Today, Suguna is a successful company that sells chicken, eggs and processed meat. They modernised the retail chain to supply consumers with fresh, healthy and hygienic meat. Sugunas vision was to Energize rural India by helping farmers succeed. They helped over 40,000 farmers from 15,000+ villages in 18+ Indian states. Although the growth helped both farmers and Suguna, the increased cost of raw materials for Suguna and increased input costs/power costs for farmers had to be tackled on a war footing so that both could have good income despite the increased inflation. Moreover, the retail price of live chicken was more or less stagnant in the past five years, especially after the start of the COVID-19 pandemic. Complexity academic level: This case can be used as the basis for a 90-min class discussion. This case study is suitable for use in an master of business administration course module or in an executive education program on developing an understanding of value creation in the business model in a rural market and also how the supply chain works. This case study can also be used to teach pricing, segmentation in marketing and supply chain perspectives and decision-making skills. Supplementary materials: Teaching notes are available for educators only. Subject code: CSS8: Marketing. 2023, Emerald Publishing Limited.

Source

Emerald Emerging Markets Case Studies, Vol-13, No. 4, pp. 1-23.

Date

2023-01-01

Publisher

Emerald Publishing

Subject

Business development; Corporate growth; Diversification; Innovation; Marketing strategy; Supply chain strategy

Coverage

A S., Department of Business and Management, Christ (Deemed to be University), Bengaluru, India; Kumar S., Department of Business and Management, Christ (Deemed to be University), Bengaluru, India; Khanna S., Department of Business and Management, Christ (Deemed to be University), Bengaluru, India

Rights

Restricted Access

Relation

ISSN: 20450621

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1108/EEMCS-12-2022-0530

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85177657753&doi=10.1108%2fEEMCS-12-2022-0530&partnerID=40&md5=0fa529dbdb27dbf5d1b6ca161d80b336