Patel Brothers: The Legacy and Challenges of a 50-Year-Old Retail Brand Serving the Indian Diaspora in the US
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; (2) introducing new retail product categories such as pharmacy, healthcare services, or insurance; and (3) tailoring its marketing mix to cater to the evolving profile of the Indian diaspora. Furthermore, given the post-COVID-19 rise in online grocery shopping, Patel Brothers has to adopt omnichannel retailing and build a more active presence on social media platforms. Rakesh is also exploring 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.