Zest

Team Masala Marketers

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Executive Summary

• Primary objective: Marketing Strategy for the sale of packaged

Indian Spices & Masala

• Modus Operandi:
– Primary & Secondary Research
– Analysis of the intermediaries and end users
– Competitor Analysis
– Recommendations Based on Research
– STP
– Promotions & Packaging

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Research Methodology
• Primary Research:
– On field survey of residents in BHEL Township , Thirverumbur ( In Depth
Interviews)
– On field survey of wholesale dealers, hotel owners in Trichy (In depth
interviews)

Online Survey using conditional branching

– Sample Overview:
– 68 respondents
– 40 in the age group of 20-30 years, 22 in the age group of 30-50 years and 6 in
the age group of 50 & above.(Households)
– The respondents were from different geographies.
– 98% were female respondents and 2% were male respondents
– Restaurant Owners : 10 (Roshan, Sree Krishna, Jayam, Azeez, etc.)
– Wholesale dealers : 3( Mini Stores, Vijay Stores, Kumar Stores)
– Retailers : 5
– Distributor: Balamani & Co.

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• Secondary Research:
– Nielsen Insights
– Research and Markets Reports – Daedal Research (Indian Spices Market:
Trends and Opportunities 2013 -2018)
– Nielsen Survey
– Rochester Institute Of Technology
http://printinthemix.cias.rit.edu/fastfacts/show/458

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Research Report
• Primary:
Market share of brands based on primary Market Share of Brands from secondary
survey: survey:
Market Share

18% Shakthi
25%
Aachi

16% MTR
Everest

11% 30% Others

• Insights:
– Out of the 68 respondents, 61 of them considered taste to be the decisive criterion
– 79% of the respondents are willing to try out new brands
– 48% of the respondents said that advertisements are effective in changing their buying decision.
– More than half of the respondents stated that they would try out a new brand if it is suggested by
someone they knew
– Online respondents majorly emphasized the desire for change of taste
– Respondents also stated that packaging and brand name were important
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Research Report
• Secondary
– The total market size for spices in India is estimated to be Rs 40,500 crore with
the unorganised segment dominating the market, valued at Rs 34,000 crore.
– As on Feb 2014 the total market size of branded spices is estimated at Rs
6,600 crore and is growing at 14 per cent per annum.
– Considering the expected growth of population in Middle India, rise in
incomes and aspirations and the expected influx of people from even smaller
towns to Middle India, this market is expected to create huge opportunities

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Findings
• Offline:
Households:
– Word-of-Mouth was the most important reason to try a new brand.
– Artificial coloring added to the masala is a major deterrent in purchase of packed spices.
– Customers feel that brands promoted through offers lack quality.
– Samples given via newspapers and magazines are discarded due to the perceived lack of
quality.
– About half of the respondents find advertisements a reason to try out new brands.
– Attractive packaging is another reason to pick a brand off the shelf.

Hotel Owners:
– Owners prefer dealers to approach them with their product, preferably with free samples.
– Quality is seen to be deteriorating over time.
– Approximately 50% of the owners prefer good quality products at low prices and the others
consider quality to be the sole requirement.
– Owners also stated that except Aachi and Shakthi masala, no other brands are easily and
regularly available in the market.
– A few owners stated that one teaspoon of Aachi masala is equal to 3 teaspoons of Shakthi
masala for the same effect. Hence they prefer Aachi over Shakthi.A few hotel owners
preferred Shakthi as they are priced lesser and have a better brand value compared to
competition.
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• Online:
– The two major reasons why people are willing to try out a new brand
are “Desire for change of taste” and “Word Of Mouth”.
– 42% of the respondents considered advertisements to be effective.
– Customers would like non-Indian masalas to be available.
– Majority of consumers stated taste as the reason for their preference
of masalas.

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Competitor Analysis:

• SAKTHI MASALA :
– Tagline: The Queen of spices / “ Arusuvaigalin Arasan”
– AD AGENCY: TWC FILMS
– Ads emphasize Aroma , Taste , Trust , Variety
– The words “ Arusuvai” , “ Makkalin Nambikkai” , “ Thani Ragam” are used in all
their ads .
– Concept selling on "Easy Cooking" rather than marketing food products.
– The company uses Solar heating channels to dry the raw materials without
losing its natural quality, flavor & aroma.
– Sakthi does not purchase products unless a member of the family that owns
the company personally inspects and approves it.
– Sakthi doesn’t deal with middlemen. They pay the farmer directly.

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Competitor Analysis:
AACHI MASALA :
– Tagline – The Mother Of Good Taste
– AD AGENCY – MARLIA AD AGENCY
– 'Aachi' advertisements focus on Food made by mother, taste, trust and family
– Value - Quality Everywhere and in Everything!
– Aachi Masala feature Newly Wed brides, Married women, grand mothers and
family care .
– A dedicated Research & Development Team is involved in developing new
products .
– The R&D actively engages with Government Organisations such as CFTRI
Mysore , Spice Board , DFRL , CIPET , IIP ,BIS for Product Development .
– Chillies are sourced from Guntur, Turmeric from Erode, Coriander from
Rajasthan, Pepper and Cardammom from Munnar, Cumin and Mustard from
Madhya pradesh
– Aachi has now entered into contract farming .

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Competitor Pricelist

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Certification
• Hazard Analysis and Critical Control Point or HACCP
Certification
• ISO Certification
• Food Safety Management System (FSMS / ISO 22000:2005)
• British Retail Consortium – For Food Safety
• National Accreditation Board for Testing and Calibration
Laboratories (NABL) Certification - For Testing and Calibrating
Laboratories .

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Brand Ambassadors
• SAKTHI MASALA : Tammanah/Jyotika
• AACHI MASALA : Manorama/Devayani/Priyamani
• MTR : Chef Damodaran
• CATCH MASALA : Vidya Balan
• MDH : MDH Old Guy (Mahashay Dharampal Gulati. )
• Everest : Radhika ( South India )

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 Distributor – Balamani & Co.
• Mr. Natarajan, owner of Balamani & Co. – a
leading distributor for Sakthi masala.
• He supplies to
– 600 shops in Trichy
– Hotels(Sangam, Roshan)
– Supermarkets(Srinidhi, Cauvery)
– Kiranas
– BHEL Canteen

• 20 year bond between Sakthi masala and

Balamani & co.

• Mr.Natarajan holds the post of Joint Secretary

in the Trichy District Distributor’s Association

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Meeting the distributor

Delivery Process Tracking of Bills

Manufacturer provides Software
to Distributor for Billing
Distributor takes order
from the retailer Purposes.

Distributors pack goods for

order received with
Every Bill issued by the
Distributors place order
with Manufacturer
particular Store reference Distributor is recorded and is
number and then deliver
goods to Retailers
automatically uploaded in a hub.

Manufacturer receives Goods delivered to

money through NEFT/RTGS Distributors Manufacturer keeps track of
daily transactions and billing.

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Distributor Godown

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Company – Distributor
Relationship
• Calls for distributors is made through ads.

• The company chooses its distributors based on the following criteria:

– Prime location of the goodown
– Goodown space and maintenance
– Number of vehicles for goods transport
– Number of Sales representatives
– Computer systems and operators
– TIN Number
– Food License
– Existing relationship with the retailers

• Credit Sales are not allowed by any Manufacturer .

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• DISTRIBUTORS EXPECTATION
– Profit Margin
– Reimbursement process (Damage Claims)
– How well Company maintain promises
– Credit notes
• PROFIT MARGIN:
The profit margins usually expected in different levels of distribution
channel are as follows :
· Distributors – 6%
· Wholesalers – 30 %
· Retailers – 50%

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Role of Associations
• Tamil Nadu Distributors Association plays an
Important role between Distributors and Various
Companies .
• The Distributors enroll themselves with this
Association.
• It is also possible to find new Distributors via the
Distributors Association i.e. apart from giving
Advertisements to find dealers .
• Association also comes in to settle disputes between
Companies and Distributor
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Chef Damodaran

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Expert Opinion
• Expectations from a masala
– Texture should be very fine
– Good flavor
– No artificial colouring
– 3-in-1 masala (single masala for sambhar, rasam and kolambu)

• Chilly powder
– Regular chillies to be used instead of Kashmir chillies.
– For Andhra , Guntur red chillies would be preferable.

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Expert Opinion
• Importance of packaging
– Vacuum packaging is mandatory
– Attractive outer cover
– Attractive name
– A mention of how the spices are procured, dried and powdered at the
backside of the packet i.e. whether they are sundried or machine
dried.
– Shelf life of the masala
– Shelf life of the masala after opening the packet
– Quantity and weight

• Best modes of advertisements

– Word-of-Mouth & TV ads

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Segmentation

DEMOGRAPHICS BEHAVIOR BENEFIT

PSYCHOGRAPHICS GEOGRAPHY
1.Age group above 1.Buying on 1.No artificial
Influence by peers via Middle India, ingredients and
20 years. Word-Of-Mouth. occasions.
Rural and Urban coloring.
2.Target population 2.Loyalty.
India. 2.Provision of a Zipper.
are women. 3.Usage rate.
3.Convenient Package
size.

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Targeting

Tamil
Nadu
Concentrated
Targeting India Undifferentiated
Targeting

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Target Audience

Target Audience

House hold Consumers Business Users

Restaurants
Fast-food owners
Wholesalers Retailers
Educational institutions
Catering Services
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Positioning
Next best to
home made
masala

Unadulterate Trustworthy
d nature brand

Benefit
sought
positioning
Authenticity strategy Purity

Aroma Quality

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Distribution Channel

Manufacturer Distributor Retailer

Manufacturer Distributor Wholesaler Retailer

Intensive Distribution strategy is followed to

ensure availability of products in all outlets.
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Pre-Launch Buzz

• Ad Campaigns
— Veedu na sappadu, sappadu na…?!
— Tharam thara, Kaaram thara. Goddey oru vai varam thara!

• Jingle in Radios
— Aa karudhu Aaha Karudhu!

• Print Ads
Advertising

OFFLINE
• TVC’s
• Billboards
• TV Serials
• Kirana Stores Name Boards

ONLINE
• Website
• Youtube
• Facebook
Sales Promotion
• Consumer

— Product giveaways
— Combo pack
— Providing a cookbook
— Joint Promotion
— Calendar
— Cause-related products

• Sales Force
— Trade Meetings
— Sales Contests
Sales Promotion
• Trade Deals

— Buying allowances
— Advertising/display allowances

• Traders

— Point-of-Purchase Displays
— Trade Shows
— Deal Loaders
— Buying loader
— Display loader
— Artificial Demand
Public Relations

— Take a selfie campaign

— Making customer feel important
 Packaging
• Requirement
— High aroma retention
— Oxygen barrier
— Moisture barrier

• Proposals
— Aluminum foil
— Metalized foil
— Re-sealable Zipper
— Transparent Window

• Pack Sizes
— Regular packs
— Family packs
— Commercial packs
Package Layout

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