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Research Details
Patel Brothers: The Legacy and Challenges of a 50-Year-Old Retail Brand Serving the Indian Diaspora in the US
Abstract
Set in 2024, the case features Patel Brothers Group (PBG), a US-based Indian grocery retailer and distributor. PBG, a family-run enterprise, comprises two business units: Patel Brothers, a chain of grocery stores catering to the Indian diaspora, and Raja Foods, an importer and distributor of ethnic food products. Over its nearly 50 years of operations, Patel Brothers has established a strong presence in the US with 51 stores in 19 states, while Raja Foods manages the procurement and distribution of over 700 products. However, Rakesh Patel, co-CEO of PBG, recognizes the need to pursue a multipronged growth strategy going forward, which involves: (1) expanding PBG's retail and distribution presence in existing states and new markets like the West Coast, which are characterized by a burgeoning South Asian population and minimal competition; (2) introducing new retail product categories such as pharmacy, healthcare services, or insurance, akin to strategies employed by major retailers like Walmart and Target; and (3) tailoring its marketing mix to cater to the evolving profile of the Indian diaspora, which includes a growing number of South Indians and younger generations. Furthermore, given the post-COVID-19 rise in e-commerce, especially among the younger demographic, Patel Brothers also needs to adopt omnichannel retailing and build an active presence on social media platforms, which the retail group lacks. More important, the group needed to explore diversifying PBG's revenue streams by getting into businesses beyond retail, such as travel services, development of shopping complexes, and brokerage services for pigments and dye. These decisions call for substantial investments, organizational restructuring, manpower and asset acquisition, and resource allocation. Through this case, students will learn about market segmentation and targeting, the resource-based view (RBV) of determining the effectiveness of a business model, Ansoff's strategies for growth, and various other tools and frameworks to evaluate new product opportunities and expansion concepts that PBG could consider.
Type
Case
Author(s)
Srinivas Karempudi Reddy, Birju Shah, Sheetal Bhardwaj
Date Published
08/30/2024
Citations
Reddy, Srinivas Karempudi, Birju Shah, and Sheetal Bhardwaj. Patel Brothers: The Legacy and Challenges of a 50-Year-Old Retail Brand Serving the Indian Diaspora in the US. Case KE1334.