Quest Foods Asia Pacific

and the CRM Initiative

Akshay Mehta
Apoorv Sharma

Mohit
Preeti Bhandari
Agrawal
 

Introduction

• Quest was Holland based company & major division of 

UK based ICI.
• Product line includes: flavors & textures, cosmetics,
toilet
toiletri
rie
es, den
dental
tal produ
roduc
cts & hous
ousehol
ehold
d good
goods
s.
• Food division was organized around products, end users
and
an d geog
geograraph
phy.
y.
• Six product groups: Diary, beverages, bakery &
confectionary, meals soups sauces & dressings, snack
foods & meat industry
 

• Four end users: Bakery, savory, beverage &

dairy.

• Four geographies

• Success Mantra: global network, marketing

acumen, world class R &D, application skills,
culture of team building
 

Food Flavouring Industry

• Flavoring industry consists of two different

market segments: Generic market & custom
fl
flav
avori
oring
ng ma
mark
rket.
et.
• St
Stri
rict
ct conf
confid
iden
enti
tial
alit
ity
y of form
formul
ulat
atio
ion.
n.
• Quest focus: cust
sto
om flavoring segment.
• It provides increased value added services:
market research for consumer flavor  
pre
prefe
fere
renc
nces
es,, in
inno
nova
vattio
ion
n and co
cos
st ef
efffec
ecti
tive
vene
ness
ss..
 

The Competitive Landscape

Quest’s major competitors:-

competitors:-

• Givaudan Roure
• Firmenich
• International Flavors & Fragrances (IFF)
• Several Japanese players including Takasako
and Hasegawa
 

New Trends in the industry

• Blurring of boundaries between developer and

manufacturer 
• Reduction in development time
• New products and ingredients
• Functional foods and convenience food
solutions
• Quest committed to innovation
 

Quest International

• Based in Naarden, Holland.

• Maj
Major
or div
divisi
ision
on of U
UK-
K- bas
based
ed IC
ICI.
I.

• Flavoring and texturing

division which a part around
was organized of the food
(1)products (2)end users (3)geography.
• The food division had 6 product groups,4 end
users and 4 geographic regions.
 

Quest International

 Attributes contributing to quest’s

quest’s success ::--
1. global network

2. marketing acumen
3. World class R&D and application skills
4.Division culture encouraged people to work
together.
 

Quest’s BPR Process

•  An attempt to better serve customers by

streamlining the business processes.

• Improvement in critical measures of

performance-cost, quality, speed and service.

• To find a new business model

 

Quest’s BPR Process

• BPR key enabler of the seven other priorities

they had set.
• Flexible design and possibilities.
• Should be earnings enhancing.
• Double revenues within 5 years.
• To align all the processes.
 

Knowledge Management at Quest

• Two Methods of storing knowledge:

->In “E
“Emp
mplo
loye
yees
es Br
Brai
ains
ns””
->P
->Proce
roces
ss of Codify
fyiing Data

But the problem was Codification of highly

creative and innovative processes as the
creative process of the application specialist is
alwa
always
ys un
uniq
ique
ue..
 

Advantage of Elaborate Global

Knowledge Management System

Information at the tip of the key decision maker if 

he wants to design a new winning cookie flavor:
No need to Reinvent the wheel

• Man
Manufa
ufactu
cturin
ring
g proces
processes
ses
• Co
Cost
st stru
struct
ctur
ures
es
• Ma
Mark
rket
et Re
Rese
sear
arch
ch
• Par
Partic
ticula
ularr ingre
ingredi
dient
ents
s
• Sp
Spec
ecif
ific
ic info
inform
rmat
atio
ion
n rega
regard
rdin
ing
g fl
flav
avor
ors
s
 

Quest’s CRM System

->Core of CRM:

•  Allowing Customers to tap into Quest’s vast

glob
globa
al kn
know
owle
led
dge ba
bank
nks.
s.

• The food business needs to be glocal:

Global customer base + Local culture and
coun
countr
try
y sp
spec
ecif
ific
ic tas
aste
tes.
s.
 

Quest’s CRM System

• Need:
Need: Developing flavors and textures for
different cultures

• Importance of CRM: Helps in bringing global

knowledge of Quest to local customers.

• Strengthen Quest’s position as a preferred

supplier by providing value added services to
customers.
 

Features of CRM System

• GUI to share key data with customers.

• To expand GUI to enable customers share their
data regarding their processes and food
development initiatives with Quest.
• Facilitate global cooperation between
customers.
• Effectiveness and Efficiency of Sales People.
 

Customer Interface

• Modular design which allows scalability of end use

applications within three product categories:
 – Bakery/confectionary
 – Dairy/ beverage
 – Noodles

Interface with R&D, Marketing and Purchasing

Department of Quest’s customers.
customers.
 

Three Stages in Rolling Out CRM

• Phase 1:Internet site (non-interactive)

 – Generalized product information

 – Major business of Quest globally
 – Option to enter private area for special
s pecial

customers
 

Three Stages in Rolling Out CRM

Phase 2: Interaction

- Customer
Customer n needed
eeded speci
specific
fic inform
information
ation..
- Interaction
Interactions
s facil
facilitated
itated by hum
human an inte
interactio
ractions.
ns.
 

Three Stages in Rolling Out CRM

• Pha
Phase
se 3: Full
Full Integ
Integra
ratio
tion
n

- Elimin
Eliminati
ating
ng human
human iinte
nterfa
rface
ce
- Action on customer’s part will automate
automate work
flow on Quest’s part directly
 

4 technological requirement for

successful INTEGRATION
1. Com
Compat
patibi
ibilit
lity
y of
of c
criti
ritical
cal cus
custom
tomer
er dat
data
a ffiel
ields.
ds.
2. Gat
Gather
hering
ing and Codifi
Codificat
cation
ion of rel
releva
evant
nt dat
data
aoon
n

a global basis.
3. Tes
Testin
ting
g (Inte
(Interna
rnall IInte
nterfa
rface,
ce, Add
Adding
ing Fil
Filter
ters,
s, Bet
Beta
a
Testing)
4. Fu
Fullll Roll
Roll Out
Out T
To
o Cu
Cust
stom
omer
ers.
s.
 

Timing & Location Issues

• Widely believed by managers related to BPR

that sophisticated CRM will help create
competitive advantage.
• Common view point of management is that CRM
being rolled out is very slow.
• Slow speed of CRM rollout is a myth.
•  Analyzing compatibility of critical customer data
fields, Universal codification of data & testing of
system would take a lot of time.
 

Timing & Location Issues

•  Another concern is Location of rollout of CRM

• CRM techniques being championed from

Singapore.
• Management believes markets like Asia which
are not yet mature do not need CRM.
• Cost of trying to get synergies far outweigh the
benefits.
• e-commerce is slower in Asia.
 

Timing & Location Issues

• Less than 10% are multinationals in Asia which

would benefit from CRM.

• Worry
region over lack of
for Quest resources in Asia Pacific
International.
 

Pressure to Implement CRM

• Challenge for providing CRM leadership.

• Initial estimates were that Quest needed

between
CRM. half a year & two years to implement
• Peculiar requirement of International
Snackfoods.
• Varying tastes in Asia makes a global CRM
tougher 
 

Pressure to Implement CRM

• Demand for greater transparency in Quest

Foods by International Snackfoods.

• Pressure from
International competitors to service
Snackfoods.
• Globalizing the CRM standards is not
considered favourable by the customer because
it wants local tastes.
• Standardization in terms of quality is needed.
 

Timing & Location Issues

• Widely believed by managers related to BPR

that sophisticated CRM will help create
competitive advantage.
• Common view point of management is that CRM
being rolled out is very slow.
• Slow speed of CRM rollout is a myth.
•  Analyzing compatibility of critical customer data
fields, Universal codification of data & testing of
system would take a lot of time
 

Moving Forward

• Reluctance of being outdone by a competitor.

• Tide in favor of CRM.

• Customers going for re-engineering & not

demanding CRM strongly.
• Country centered approach to product
development of customer meant that linkages to
Quest’s regional & global technology is less
important.
 

Moving Forward

• Opinion 1: To delay CRM & focus on building

technology skills in major countries like China,
Korea & Japan.
•  Actions in Asia shall have Global consequences.
consequences.
• Opinion 2: Focus on small nimble technology
oriented food company.
• Partner Selection & Rollout Selection closely
related.
 

Scenario 1:

• It implements internal knowledge management

system first & then proceed with BPR.

• This delays CRM for several years.

• Ensures internal systems work closely before
linking with a partner.
• Delay gives time for Asia to catch up with
technology.
 

Scenario 2

• It goes into CRM with a customer who would

agree to act as learning partner.

• CRM would
business be developed
partner’s needs. based on strategic
 

How to choose

• Look at your business agenda & choose your

priorities.

• Then make decisions & allocate resources.

• CRM should infact complete its two objectives:
Provide the firm competitive advantage & Make
money for the firm.
 


Thanks
 

• Quest Foods International is one of the

world's largest manufacturers of
fragrances, flavors and textures for the
food, beverage and consumer products
industries. Quest Foods' regional vice-

president is in the process of implementing

a business process re-engineering
re-engineering project
for the company. His current efforts focus

on developing
based customeranrelationship
informationmanagement
technology- t
managemen