Gurpreet k sidhu_criss cross_final

Presented By Gurpreet K Sidhu
Criss – Cross – Industry Tracking
Game Changing Marketing Decisions in Food Processing Industries
27-Aug-18Faculty of Management Studies – Sri Sri University 1

OVERVIEW
OF FOOD
PROCESSING
INDUSTRY
INDIA
OVERVIEW
OF KEY
SEGMENTS
MAJOR
PLAYERS
STRATEGIES
ADOPTED BY
MAJOR
PLAYERS
AGRO
TECH
FOODS
LTD
MTR
FOODS
FLOW
OF
PRESENTATION
CONCLUSION

• India has rich agriculture resource base
I. 192 million hectares of gross cropped area
II. 89.9 million hectares of net irrigated area
III. 127 agro-climatic zones
• Food processing industries one of the largest industries accounts for
32% of country’s total food market
• It forms important segment in terms of contribution to GDP,
employment and investment
• FY – 13, FPI GDP expanded at a CAGR of 6.3%
• In 2013 Rs. 247,680 crore and expected to grow at rate of 11% to
touch Rs. 408,040 crore by 2018
Overview of Food Processing Industry in India

• Trends in food processing industry
 Change in taste and preferences of domestic consumers
 Increasing disposable incomes, dual income households, urbanization, increasing numbers of
nuclear families, preference for convenience foods
 Liberalization and growth of organized retail attracted global players to Indian market
 Rising demand for Indian products in international market
• India’s exports of processed foods rose at a CAGR of 33.2 % FY 11-14
• Sales value of ready meals was 0.01$ billion in 2008 and rose to 0.02$ billion in 2013

Key Segments Overview
Six Segments
• Fruits and vegetables
• Milk and milk products
• Meat and poultry
• Marine products
• Grain processing
• Consumer foods

MAJOR
PLAYERS
ITC
Parle
Products
Pvt. Ltd
Agro
Tech
Foods
Ltd
AMUL
Perfetti
India
Ltd
Cadbury
India
Ltd
Source:-http://www.india-
opportunities.es/foodprocessing.php?lang=ing&sub=majorplayers

Strategies adopted by different players
PRODUCT INNOVATION
• Create authentic Indian
products with international
flavors
RISING BUSINESS
• Companies moving up the value
chain
• Produce raw materials and
convert them into process foods
LOW COST PRICE
STRATEGY
• Provide affordable and value
for money products

Strategies adopted by different players
JOINT VENTURE
• Between Global and Indian
Companies to avail global
products in India
ADVERTISMENT SHOWCASING
PROCESSED FOODS
• Easy to cook
• Taste and health at same time

• Marketing food and food
ingredients to consumers and
institutional consumers
• Listed in both National Stock
Exchange (NSE) and Bombay
Stock exchange (BSE)
• Affiliated to ConAgro Foods, Inc
of USA, which is one of the largest
food companies
• Vision : To become the Best
Performing Most Respected Foods
Company in India
• Mission : “Nourishing families.
Enriching Life”.
Agro Tech
Foods Ltd

1. Creating Act2 popcorn as a carrier brand
• Launched in India in 1999
• It is the world’s first and largest selling popcorn brand
• Created a new category as branded popcorn
• Initially taped markets where popcorn consumed the most like movie theaters, parks and beaches
• Initiated making of at home using microwave oven, later innovated Act2 popcorn which can be
made using a pressure cooker advertised same showcasing a father preparing Act2 popcorn
• Target the taste buds of Indian customers
Strategies Adopted by Agro Tech Foods Ltd
Ready To Eat Microwave Instant
Spicy Pudina
Fundoo Masala
Tomato Chilli
Sweet Popcorn
Natural
Butter
Butter Lovers
Classic Salted Butter Tomato
Chilli
Tandoori Tadka
Southern Spices
Golden Sizzle
Chilli Surprise
Tomato Chilli

2 Cutting edge HR strategy
• Non-hierarchal organization created
• Only few mid management levels exist in organization
• Uses power of young employees with support from experienced ones
• Increase in employee engagement index from 38% in 2006 to 71% in 2011 and decrease in attrition
rate from 40% in 2006 to 12% in 2011 mostly in field of sales.
• Got good response in tier 2 and tier 3 cities and rural retail shops.
• Since 2009 the brand’s penetration has grown 80% in last three years with a reach to 50,000 – 1,
00,000 plus population towns
• Gestation period for around more than 10 years

• MTR Restaurant was started in 1924
by Maiya family in Bangalore
• In 1975, Maiyas diversified into the
business of convenience foods and
instant mixes
• Culinary secrets have been protected
and handed down over the
generations and MTR’s food is
based on truly authentic recipes
from their region of origin
• Vision: To be an indispensable
companion in every kitchen to
create authentic and delicious Indian
food
• Values: Excellence, Passion,
Innovation, Inclusiveness, Openness
MTR Foods

Strategies of MTR Foods
1. First Mover Advantage
• During state of emergency in 1975 Mr. Maiya was forced to shut down restaurant, since it
was going under huge loses
• Mr Maiya used his technology skills to launch Rava Idli Mix in 1976
• Hence first product of MTR was created
2. Availability of wide range of products
• Frozen foods, MTR Snack up, Masala Powders, Sweet Mixes, Breakfast Mixes,
Ready to eat, Ready to cook, Drinks, Vermicell, Pure Spices, Snack Mixes, Meal
Mixes, Masala Pastes and Sweets across India
3. Technology Innovation
a. Retort Pouch
• The Defense Food Research Laboratory (DFRL) and the Council for Scientific and Industrial Research-
Central Food Technology Research Institute (CSIR- CFTRI) came in with packaging concept of retort
pouch and transferred the technology to MTR foods
• Retort Pouch need no refrigeration
• Supplied its ready to eat food to Indian Army in retort pouch
• The first Indian Company to be awarded by Prime Minister for technology absorption

b. Implementing ERP system
• First Indian Food Company to implement ERP system SAP in 2005
• Advantages
 Improvement in working capital, lowered from 65% to 45%
 Control inventory and costs
 Raised its gross margins from 45 to 49% per month in the process
 Reduction in defaulter’s list
4. High quality standards
• First Indian processed foods company to be certified with Hazardous Analysis Critical Control Point
(HACCP) certification which is an international standard of food safety and hygiene
5. Hygiene Principle
• A hygiene score cards with following parameters:-
 Personal hygiene of employees
 Production environment hygiene
 Machinery cleaning protocol
• Each work area rated by an independent team and reflects in balance score card

6. Innovative Marketing Strategies
a. Sponsored magic shows and theatre performance in year 2006
• Hold live demonstrations of its products to people visiting the performances before and after the
show
b. Created a consumer website - www.hooksforcooks.in
• A premier online culinary portal by MTR foods, featuring delicious paneer dishes recipes as well as
rice dishes
c. Social media presence
• Facebook page, twitter account and YouTube channel helps to be connected with audience
d. Television advertisements
e. Contest (Eg. Masala contest, share your recipe)
7. Global Presence
MTR products have its presence in Canada,
USA, UK, Australia, New Zealand, Japan,
Thailand, Dubai, Sri Lanka and 13 other
countries of world

8. Exclusive Retail Store
• Namma MTR a retail chain that allows customers to experience
the wide MTR range
• Namma MTR is split into three sections:
 First section showcases the entire range of products.
 Second section is a novel concept kitchen where customers can
interact with specialist chefs to learn about MTR products and
watch live demonstrations
 Third section offers a variety of fast food — customers can either
eat here or get a quick take-away from the express counter
9. MTR differentiators
• 100% natural products with no preservatives and
authentic ingredients
• Home cooked taste
• High on quality
• 100% vegetarian products

Conclusion
Make in India
• Food processing sector has been one of the initiatives of Make in India project
• Investment opportunities in package food
• As per this initiative there have been deductions in income tax, service tax,
custom duty, central excise duty
• Several FDI policies, sector polices have been initiated
• With many opportunities available for investors, the food processing segment
will definitely grow at remarkable rate in India
• More aggressive marketing strategies should be adopted to match Global
Marketing Standards

References
• http://www.thehindubusinessline.com/todays-paper/tp-brandline/mtr-foods-works-the-
magic/article1758615.ece
• http://www.thehindubusinessline.com/todays-paper/tp-brandline/mtr-foods-works-the-
magic/article1758615.ece
• http://www.academia.edu/5373625/RTE_and_RTC_Foods_-
A_New_Era_in_the_Processed_Food_Industry_With_Special_Reference_to_MTR_INTRODUCTION_
AND_CURRENT_INDIAN_MARKET_FOR_FOOD_PROCESSING_INDUSTRY
• http://www.scribd.com/doc/39042540/Case-Study-on-MTR-s-Strategic-Competitive-Advantage#scribd
• http://www.exchange4media.com/57569_ready-to-cook-brands-storm-indian-kitchens-with-customised-
flavours-and-health-tag.html
• http://marketingpractice.blogspot.in/2008/05/act-ii-creating-category.html
• http://timesofindia.indiatimes.com/business/india-business/Bharat-takes-to-packaged-food-
cosmetics/articleshow/19249542.cms
• http://www.irjcjournals.org/ijmssr/May2013/10.pdf
• http://www.slideshare.net/ranjanshetty/mtr-quality-as-competitive-advantage
• http://www.cxotoday.com/story/mtr-foods-deploys-sap-records-rise-in-margins/
• http://pitchonnet.com/blog/2012/07/25/mtr-spices-up-national-presence/
• Case study of Agrotech Foods Limited
• http://www.mofpi.nic.in/

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