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| |  Wednesday, 27 March, 2002, 11:43 GMT Lunch Lesson 11 - Business Success Patak's has capitalised on the British love of curry The Lancashire town of Leigh could arguably claim to be the curry capital of the UK. It's home to the world's largest Indian food factory. The plant belongs to Patak's, and it's the size of six football pitches. It produces everything from stir-in sauces to ready meals, chutneys and pickles. And it's not just ordinary shoppers who buy its products. Ninety per cent of Indian restaurants are also thought to use Patak's.
We scoff our way through �2bn worth of Indian food in restaurants each year. And we shell out another �150m on Indian food from shops and supermarkets Wealthiest Not surprisingly, Indian food is big business. Last year alone, Patak's recorded sales of �50m. And Kirit and Meena Pathak, the husband and wife who own the company, came 29th in this year's rich list of the 250 wealthiest Asians in the UK.
Kirit's father, Laxmishanker Pathak, started the business in 1956. He and his family arrived in the UK from Kenya with just �5. After struggling to find work, Laxmishanker started making and selling samosas from his kitchen. They proved popular, he extended his range and eventually had enough money
Kirit joined the company when he was 18 and he and his wife Meena turned it into the major brand it is today. So what makes Patak's a success? Kirit and Meena believe it's down to quality, authenticity and convenience. "You have to stick to your fundamental principles," says Kirit. "Our Indian heritage is our background, we are the experts in Indian food and as long as we stick to the traditional recipes, this is the key element in staying ahead of the competition."
Meena takes charge of the recipes and Kirit supervises the importing of the ingredients. And they both oversee the blending and grinding of the spices and herbs. The family recipes are a closely guarded secret, known only to the Pathak family. It may still be a family business, but Patak's has big ambitions. In true "coals to Newcastle" style, Meena and Kirit are aiming to break into India - where surprisingly the market for ready-made Indian meals is still relatively small. Student Guide The Pathak family know all about success. They sell hundreds of products to homes and restaurants - more than 90% of curry houses in the UK use them. They export to more than 45 countries and have just built a �12m factory Patak's claim that their success comes from an emphasis on quality, authenticity, and convenience. This combination gives them a special sort of advantage over their competitors. They obviously know what the market wants and make products that meet those demands. Not everyone gets it right quite like Patak's. Find our more about the company's history. Just think... Why do you think quality, authenticity and convenience have brought Patak's such success? What makes the difference? A successful business often has a secret - its source of competitive advantage. This is something that makes the business distinctive. It often comes from: The real secret is that it must be hard for others to copy. Many businesses do well because their prices are low. This isn't enough by itself because others can copy quite easily. Real success, at a low price, happens in combination with at least one of the other factors. Think of the places where you might buy clothes. Just being cheap isn't enough - they must have a certain kind of style. Innovation A business that is first to the market with a new product always has an advantage. For a while, it has a competitive advantage but it mustn't sit back and watch the rest - they will soon catch up. The business must be innovative in everything it does - not just in the products it makes. To stay ahead a business must: Just think... How do you think Patak's have been innovative? Work out how a business that you know about has been innovative. Reputation Most of us are in a hurry. When we want to buy something, we don't really want to spend ages researching the best possible alternatives. So once we trust a business, we tend to go back for more. We also listen to the views of our friends. A good reputation takes a long time to create so businesses guard them very carefully. They employ people to find out just what the public think and to limit the damage if things go wrong. Reputation can be good and bad. If you've had a bad experience, you tell your friends about it. If the product has gone wrong or if the after sales care has been poor you'll tell everyone. This is how a reputation can harm a business. Just think... How does Patak's reputation help it to do well? Work out the reputation of six businesses and explain how this helps them to be successful. Relationships A business cannot survive on its own. It needs suppliers and customers. Success can come from developing a good relationship with either party. In a rapidly changing market, having suppliers who are flexible enough to change quickly can be a source of competitive advantage, as it allows a business to put innovative products on the market very quickly. Developing this sort of relationship takes time as there must be trust on both sides. Trust leads businesses to do more for each other than they would for others. Customers who know that they will be looked after are likely to come back. In a very competitive market, developing such relationships with customers can be critical to success. Some businesses seem to get this wrong. Catching a new customer can be quite easy but keeping them is more of a challenge. Some businesses spend millions on bringing customers in but don't look after them well once caught. Just think... What evidence is there that Patak's has a good relationship with its customers? Which businesses can you think of that have good relationships with their customers? What effect does it have? Can you think of businesses that don't work hard enough at developing a good relationship with their customers? What would you suggest that they do to improve things? Success for all Patak's influence extends beyond the business. It supports the Curry Chef of the Year contest. Meena Pathak, one of the company's owners, is also one of the judges. Just think... Why do you think Patak's supports the competition? What do other businesses do to support activities in the community? Why? | |
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