The GTM strategy for a new market entrant in the Spices Industry targeting the Tier 3 and Rural Market of India

1. ज़ायक़ा
Go-To-Market strategy to launch a
spice company
Section D | Group 6 | MM
Gaurav Chandak | 204
Nishant A | 220
Paras Wadhwa | 223
Rahul Nair | 226
Sudiksha | 238
Vipin Dhonkaria | 245
Yougal Kargaonkar | 247

2.  India is Spices’ birth land. Largest Consumer,
producer and exporter of spices.
 INR 40,000 Crore worth of market with only 15-
20 percent of this in branded spice market.
 Tier 3 and Rural markets untapped due to high
prices.
 Our Potential Market is 1,50,000 Villages
INTRODUCTION

3. INDUSTRY
OVERVIEW
India can produce 75 spices out of
109 varieties listed in the International
Organization for Standardization (ISO)
Market's major players include MTR Foods,
Everest, MDH, Catch, Patanjali, Ashirwad,
Fresh & Pure
Sr. no. Spices States of India
1 Black Pepper Kerala, Karnataka, Tamil Nadu.
4 Ginger Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Orissa, Arunachal Pradesh, West
Bengal, Mizoram, Sikkim, Himachal Pradesh, Tamil Nadu, Uttaranchal, Chhattisgarh, Jharkhand.
5 Turmeric Andhra Pradesh, Karnataka, Orissa, Tamil Nadu, West Bengal, Maharashtra, Kerala, Assam, Bihar,
Meghalaya, Tripura, Uttar Pradesh, Arunachal Pradesh,
6 Chilli Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh,
West Bengal, Madhya Pradesh, Uttaranchal.
7 Coriander Rajasthan, Uttar Pradesh, Uttaranchal.
8 Cumin Rajasthan, Gujarat, Uttar Pradesh
9 Fennel Gujarat, Rajasthan, Uttar Pradesh

4. INDUSTRY OVERVIEW
Commodity 2016 2017 2018 2019
Chilli 0.89 0.97 0.93 0.98
Ginger 0.58 0.52 0.54 0.57
Turmeric 0.63 0.68 0.62 0.65
Black Pepper 0.14 0.14 0.15 0.16
Garlic 0.49 0.54 0.59 0.64
All spices 3.02 3.34 3.62 3.9
Projected household consumption demand for spices in India: 2016-2019 (million tonnes)
45% 23%
13% 15%
Data of spice industry
The above data displays the increase in demand of
both exports (2.8 billion USD) of spices and national
demand of spices. Thus, spice industry is very
promising and is tend to grow at 7% every year with
Indian rural market increasing at 8.7% every year
4%

5. Rural Chain Advantages
We will be considering those regions
which are predominant in particular spice
production.
FARMER
Procurement of Raw material
Raw material will be procured directly
from farmers to save on middle man
costs and provide fresh organic spices
FARMER
ZAIKA
ZAIKA
For example, we will procure red chilly from
Rajasthan, a dominant producer, and
Turmeric from Uttar Pradesh.

6. PRIMARY RESEARCH
Purchase of spices periodically
Research Data
Research Data
82%
Daily/weekly purchase
Consumption of unpacked spice
The study showed that out of 100 respondents
interviewed, 64% rural and 14% urban women
preferred unpackaged spices.
After analysing the trend of purchasing
behaviour for packaged and unpackaged
spices, it was found that rural population chose
to buy spices mostly from street hawkers and
local shops in an unpackaged form.
Unpacked Spices
64%
The study showed that out of 100
respondents interviewed, 82% rural and 26%
urban women preferred buying spices
frequently.
After analysing the trend of purchasing
behaviour for purchasing spices, it was found
that rural population chose to buy spices
frequently in small quantities rather than
storing them.

7. PRIMARY RESEARCH

8. MARKET RESEARCH - RETAILERS
Main Criteria
Margin | Quality
 Payment/Credit cycle
 Supply/Stock replenishment
 Promotional banners and freebies
 Flexibility on Inventory Replenishment
Schedule
 Incentives for Target Completion
 Brand Attachment
 Portfolio Presentation
Local Spices
Fresh Spices
 Others (Friendliness, goodwill,
values, relations)
Among the various retailer related attributes, Margin, and
Quality are the most critical features that retailers look for. They
serve as hygiene factors and essential motivators for entering the
Spice Retail Market.

9. MARKET RESEARCH - CONSUMERS
Main Criteria
Price | Taste
 Purity
 Durability
 Variety
 Container provided with
product
 Brand
 Discount
Local Spices
Higher Trust
 Availability
The primary attributes are price, taste, and purity. The cost can be associated with
the value for money, which should provide higher Customer perceived value. It is
analysed from the survey that customers in rural areas are more attracted to
products offering generous discounts.

10. You can Resize without
losing quality
You can Change Fill
Color &
Line Color
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FREE
PPT TEMPLATES
PORTER’S FIVE FORCES MODEL
Threat of New
Entrants
Threat of Substitutes Competitive Rivalry
Supplier Bargaining
Power
Buyer Bargaining
Power
In the lower tier cities and
the rural areas, due to high
demand and low initial
investments, there are many
small manufacturers locally
operating. Kabira, Apex etc
are the many brands who
operate in the lower tier
cities.
With many similar options
available for customers,
availability was the primary
reason for sales. People
would buy any packaged
product for their spice needs.
Our research analysis proved
that people prefer packaged
product rather than open
ones primarily because of the
safety factors
With lack of many branded
products, customers aren’t loyal
to any brands in these
cities/villages. Switching cost is
close to zero for the customers,
when looking at the decision to
change the brand. Most of the
products sold are sold in not-
well packaged units which has a
lot less appeal to the
consumers.
Due to the presence of many
small scale independent
distributors, sellers don’t
enjoy any bargaining power
in the market. Setting high
prices may force customer to
move to another seller
Absence of any single
wholesale buyer like a
supermarket or co-operatives
makes the buyer bargaining
power weak in this market.
Spices are bought primarily
on a household basis as per
their weekly or monthly
needs

11. STP
Geography - Rural Area and Tier 3
cities
Demography
Pyschography
Segmentation Targeting
Income: Middle
Gender: Female
Age: 20-60
Psychographic: Interests: Mid- high
consumers
Positioning
Brand Mantra: Healthy and Pure
POD: Pure, Natural, FSSAI
cerification
POP: Taste, Low price

12. COMPARATIVE ANALYSIS
OF PRICE WITH PACKAGED BRANDS
Players
Turmeric Powder
(200 g)
Distributor
Discount
Wholesale
Discount
Retailer Discount
Customer
Discount
MRP Final Price
MDH 2 2 5 5 55 52
Everest 2 5 5 5 52 49
Wonder 3 10 10 50 45
PCM 6 8 15 52 44
CIBA 6 10 10 55 50
ZAIKA (Our Product) 6 12 25 56 42
Players
Chilly Powder(1 kg)
Distributor
Discount
Wholesale
Discount
Retailer Discount
Customer
Discount
MRP Final Price
MDH 2 2 5 5 310 295
Everest 2 5 5 5 315 299
Wonder 3 10 10 280 252
PCM 6 8 15 300 255
CIBA 6 10 10 300 255
ZAIKA (Our Product) 6 12 25 320 240

13. Stock Keeping Units (SKUs)
• Ensuring minimum
availability of high
demand spices
• Regular monitoring of
SKUs
PRODUCT DESIGN STRATEGY
Household
Consumption Pattern
• Chilly powder’s
monthly
consumption is
higher than turmeric
powder and
coriander powder.
• High -end spices
products like Saffron
and Cardamom are
used less
1. Monthly Buyers
• characterized mainly
by their purchase
pattern
• Prefer to buy 500g
packets instead of
smaller sachets
available in the
market
2. Weekly Buyers
• characterized by
200g sachets
• Less loyal than
monthly buyers on
an average.
3. Daily Buyers
• Prefer to buy 50g and 100g
sachets
• Purchase depend upon the
availability of brand rather
than personal preferences and
emotions.
• Low per capita income
distribution and less directed
towards spice consumption.
M W DBuying
Pattern

14. COMPARISON WITH LOOSE PRODUCTS
Warranty, Packaging, and Other Marketing Strategies
• The packaging message should be aligned with the advertising message adopted by the promotion campaign
• Flexibility to exchange the expired products after expiry dates
• It will increase brand loyalty
Vacuum packaging
• It will take minimal space in the inventory and shelf
• It will help in storing and delivering more SKUs in less space
Minimize Wastage
• Retailers could sell it quickly by eliminating the weighing the spices and packaging
according to demand
• Will reduce the wastage of spices in the weighing and packaging process.
Hygiene
• Automated packaging
• Less human contact
• Better hygiene
FSSAI Certified Product
• Our spices will be certified by FSSAI to ensure better quality than
loose products

15. Manufacturing Plant
RD2
RD1
Rn
R2
R1Rn
R2
R1
Customers
DISTRIBUTION STRATEGY
Optimize the lead time for inventory replenishment
to be done quickly without incurring
much inventory holding costs

16. PROMOTIONAL STRATEGY
Boards, Banners of Company for
Retail Stores.
Sponsor Melas and Fairs in
village
Provide incentives
to the regional Halvais.
Incentive driven
Targets for the
Distributors
Advertise in local
newspapers
Provide brand merchandise
to retailers

17. ज़ायक़ा
PACKS
Bright coloured boxes
as per the spice to attract attention
All box will indicate weightsPrice plays an important role
In the decision making process,
Hence keeping it on the top side of the box
“Zaika” a name closely
linked with the taste
and culture of
Indian dishes
“Shuddata ki pehchaan” and
the silhouette of the farmer to
convey the USP of the product :
the purity of the spices straight
from farmers
Product photographs on the front, to
guage the consumer’s interest

18. Thank You!