Publications
Publications
- November 1994 (Revised September 1996)
- HBS Case Collection
RiceSelect
By: Alvin J. Silk and Mary Shelman
Abstract
In August 1994, Robin Andrews, President of RiceTec, Inc., faces a critical decision that will affect his firm's future: what policy should RiceTec follow for supplying grocery retailers with private label merchandise? RiceTec, a small privately owned firm engaged in rice breeding research and marketing, has struggled for eight years to gain market acceptance for its line of premium specialty rice products sold under its own brand name, Texmati. While Texmati is superior in taste to other leading rice brands on the market, RiceTec's limited cash flow greatly restricts its ability to invest in slotting allowances and pull programs. Consequently, its progress in gaining national distribution in supermarkets has been disappointingly slow. Several leading supermarket chains have expressed interest in having RiceTec supply them with rice products to be sold under their retailer-controlled premium private label brand names. The firm's board is divided on the issue of whether or not it should produce private brands for retailers and Andrews must re-examine the growth strategy in light of changing opportunities for brand building available to a small firm operating in the changing market.
Keywords
Cash Flow; Leadership; Growth and Development Strategy; Brands and Branding; Marketing Strategy; Supply Chain Management; Private Ownership; Research and Development; Conflict Management; Agriculture and Agribusiness Industry; Retail Industry
Citation
Silk, Alvin J., and Mary Shelman. "RiceSelect." Harvard Business School Case 595-033, November 1994. (Revised September 1996.)