Business Case Study: Veeba
Business Case Study: The Evolution of Veeba
Starting with Veeba’s introduction, it was founded in 2013 by Viraj Bahl. The company had a clear vision from the very beginning, and that was to offer high-quality and innovative products. In this case study, we’ll be going through the brand's journey, history, marketing strategies, and growth techniques.
After opening a chain of restaurants in 2009, Bahal found himself in a failed state. His restaurant always used to remain empty. The fact that he failed as an entrepreneur and that the little chunk of money he had was spent on buying a house and opening a restaurant was a massive challenge in itself.
Initial Phase
With legitimately zero money left with Bahl, he took the risky decision of selling his house and starting up again with a processing business that his father had earlier.
He bought a small piece of land in Neemrana, Rajasthan, which was around 90 kilometres away from Haryana, and started his company, Veeba. Bahal’s vision was crystal clear. He wanted to design his brand in such a way that it aligned with global quality standards and not just the Indian palate.
They majorly focused on in-depth research during their early stages to make sure that each product reflected brand excellence and innovation. Despite the initial challenges and struggles, the brand stood firm to maintain its founding principles.
Veeba’s vision
“To delight consumers with an unmatched food experience that delivers superior quality, service and value.”
Guiding principles
Service
Quality
Hygiene
Value for money
Taste
B2B Insight
Their early success in the B2B industry was marked by partnerships with significant Quick Service Restaurants (QSRs) by supplying high-quality sauces. In fact, their first customer was none other than Domino's, who gave them an order of 70 tons. The brand understood the significance of collaborating with well-established brands, which actually helped them make a name for themselves in such a competitive market. Within two years, the company was able to collaborate with massive brands like Burger King, Starbucks, Taco Bell, Cafe Coffee Day, and even the PVR.
Benefits of B2B
1. Constant flow of cash:
Since it has a vast level of difference from B2C, the volume level is comparatively higher, and the frequency of orders is predictable because the company doesn’t have to go and influence multiple retailers. They could pay salaries on time and had enough money to invest in R&D. Once they had 100 crores in revenue from B2B, they entered the B2C market.
2. Quality standards:
By collaborating with high-end brands, it has also created very high-quality standards, as any high-end brand would easily reject if the product were not up to mark.
Even through their B2B approach, they were able to understand what customers actually liked. For instance, if they are selling their sauces to a brand and out of all the sauces, mint sauce gets the most sales, it would be very easy for the company to understand what people like more. Even today, they have a wide range of products that are only available to B2B businesses, like doughnut toppings, ice cream toppings, and seasonings. Their B2B revenue out of the current revenue is 8% (2024).
3. Entering HoReCa
By entering HoReCa (“Hotel, Restaurant, and Café/Catering") segment, Veeba expanded not only its customer base but also its reputation for quality. Through this approach, they were able to reach a much larger customer base, including high-end cafes, crowded restaurants, and hotels. This segment required a wide range of products, which Veeba was well-equipped to provide. They ensured that all their products met the high standards of their clients. This step made Veeba a leader in the condiments industry; it helped them build a strong and trustworthy customer base.
Entering the retail sector
In 2015, Veeba entered the retail sector by launching a wide range of health-conscious products to meet the needs of consumers. The fat content in this range was as low as 1%, although these products were not accessible to the Indian market. But soon, in 2017, Veeba launched another range of products that had around 19 products specially designed for the Indian palate. It had numerous kinds of dips and mayonnaise that were also reasonable. This decision was an excellent step taken by Bahal to make a direct connection with consumers.
Their primary focus under this was their packaging, which was hands-down commendable as it was both attractive and practical. They could quickly gain insights into customer preferences, which excelled at product innovation and diversification. These products are now present in almost every retail store throughout the country.
In 2019, Veeba stepped into the nutrition segment, where they provided products related to child nutrition. After a heavy loss of 70 crores, Bahal stopped this segment.