The Bisk Farm Growth Story
Client Centric Strategies for Success: Lessons from Bisk Farm’s Growth
Many of our stories are about large brands or B2B organizations and their growth strategies.
This time, we have curated this piece about an Indian business growth story that faced challenges initially but overcame them successfully. If you are from the eastern part of India, it is very likely that you have seen confectionery from the brand Bisk Farm.
Bisk Farm is the flagship brand of SAJ Food Products, a FMCG company headquartered in Kolkata. It was established in 2000 by Krishnadas Paul, when he was 60. However, he was not a newbie to FMCG, as he had been a distributor for Nestle, Dabur, and Reckitt & Colman for over 30 years.
In 2000, SAJ pioneered the introduction of sugar-free biscuits in India. Long before health-conscious options became popular in the biscuit industry, SAJ Food Products set a precedent. Their sugar-free biscuits paved the way for healthier snacking, inspiring even industry giants like Britannia to follow suit in subsequent years. But it was not a cake walk!
It was a bold path for new market entrants. Growing a new product in a new market is always an uphill climb. That was the first speed breaker for SAJ Foods for the following reasons:
- Creating sugar-free biscuits that taste as delightful as their sugary counterparts isn’t easy. The challenge lay in ensuring that the biscuits remained crispy, crumbly, and satisfying, even without the usual sugar rush.
- Alternative sweeteners used in sugar-free products often come at a higher cost than regular sugar. Balancing affordability with quality was a bottleneck.
- Sugar-free products must adhere to stringent regulations regarding labeling, claims, and permissible ingredients.
- Convincing consumers to embrace sugar-free options required a hard marketing push. Many associate “sugar-free” with blandness or sacrifice.
- The biscuit market is fiercely competitive, with established players like Britannia, ITC, and Parle
SAJ Food Products had to reframe the narrative, emphasizing health benefits and appealing to health-conscious consumers. They had to carve a niche for themselves with a sugar-free range as a unique proposition.
Despite their best efforts, SAJ failed with their sugar-free products due to the following reasons:
- Distribution Network: You would know that in the FMCG, the presence of a deep and active distribution network is vital. But Bisk Farm’s network had new and inexperienced distributors. This led to poor channel penetration and intermittent supply issues. As a result, the biscuits struggled to reach a wider audience.
- Overcoming Skepticism: Consumers didn’t associate sugar-free biscuits with a delightful taste. A broader marketing campaign and deeper pockets were needed for this.
- Britannia’s Dominance: Taking on Britannia, a formidable player in the Indian biscuit market, was no small feat. Britannia’s established presence posed a significant challenge.
After 4 years of hardship, in 2004, Bisk Farm encountered losses amounting to Rs 15 crore. For a start-up, this was a big number. Krishnadas and his children made one last attempt to review the company, and here are the strategic actions they took to rise from the ashes:
- Regional Focus: They recognized the importance of regional appeal. So instead of targeting pan-India distribution, they chose to go regional. In doing so, they focused on Eastern India and introduced products tailored to local tastes. This shift in approach, coupled with targeted marketing efforts, proved pivotal in revitalizing sales and establishing a strong foothold in the region.
- Differentiation and Diversification: With the growing presence of competitors like Britannia, SAJ Food Products understood the need for diversification beyond biscuits. Bisk Farm deliberately carved a niche in the premium segment. This led to the launch of Just Baked outlets, offering a range of bakery products and snacks. By expanding its product portfolio and regional retail presence, the company not only mitigated competitive pressures but also tapped into new revenue streams, contributing to its overall growth.
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Merely by pursuing these 2 strategies, they were able to turn around and come out of their financial situation.
Below are the two important takeaways for any organization, B2B or B2C, that wants to achieve consistent growth and tap its full potential.
Market to Product/Service Fit
It is very important to create a good fit between your products/services and target customer segments. For this to happen, you will need to understand the customer pain and the unique value proposition that your products/services offer. In order to achieve a good fit, you may need to take tough business calls, such as narrowing the product range, features, and geography. At first, it might look very narrow and wouldn’t resonate with your larger vision. For Bisk Farm, selling just in the eastern region was a tough call, but it helped achieve their larger vision of becoming a complete food company in the long run.
Customer Insights
Due to the complex market dynamics in today’s VUCA world, it is very important for you to constantly gain customer/client insights and continuously fine-tune your product/service to market fit. Just doing C-Sat surveys and publishing scores wouldn’t help. Throughout its journey, SAJ Food Products has demonstrated a keen understanding of customer preferences and market dynamics. By leveraging insights into regional tastes and preferences, the company tailored its product offerings and marketing strategies to resonate with local consumers. So this can lay the foundation for sustained growth and market leadership.
Subsequently, SAJ Food Products pursued an aggressive expansion strategy. By investing in new production facilities in strategic locations like Siliguri and Bangalore, the company increased its manufacturing capacity and strengthened its distribution network. This facilitated its expansion into previously untapped regions. They kept the prices constant at Rs 10 and expanded to small pockets in Tamil Nadu and Andhra Pradesh with 1700 distributors, later expanding into 19 states as a pan-India brand. By 2023, Bisk Farm clocked a revenue of Rs.2,100 Cr and became the 4th largest player in India with a 4% market share.
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