The document outlines India's rapidly growing packaged rice market, projected to reach INR 333 billion by 2016, with basmati rice commanding a 75% market share. It highlights the evolving consumer preference towards branded rice, particularly among urban affluent and upper middle classes, alongside marketing strategies involving both modern and traditional retail channels. The emphasis is on trade promotions and innovative marketing communications to drive brand awareness and loyalty, focusing initially on regional launches before expanding nationwide.

1. Dilnoor:
Market Entry Strategy/Launch Collaterals
June 22, 2015
The beach

2. Some basic Facts of India’s Rice Market

3. Market Size
In a country where thousands of rice varieties are grown, branding has come to play a role in both the domestic as
well as the export market. The brand is the new mantra for success and Basmati, also known as the 'king of rice', is
in the middle of the action. It is the urban affluent and the upper middle class which is gradually warming to the
concept of buying branded rice.
The packaged rice market in India was valued at INR 122 billion in 2012, and is growing at a CAGR of over 30% for
the past three years.

4. It is projected to reach INR 333 billion by 2016. Basmati rice dominates the packaged rice market in India with a
nearly 75% market share.
However, there are some other varieties present, e.g. Sona Masoori, long-grain, Patna rice, Navarra rice, etc.
India leads globally in the production and export of Basmati rice, but this variety accounts for less than 2% of the
total Indian rice production. It is estimated that India produced approximately 4.25 million metric tons of basmati
rice which accounts for 75% of the entire global production of this rice type.
Growth Rate & Basmati’s share in packaged rice.

5. India’s Rice Production and Area under Cultivation
India’s rice production has increased at CAGR of 3.32 percent during 2002-03 and 2013-14.
Area under rice cultivation has not increased substantially during 2002-03 and 2013-14.

6. Brands Target Market
Aroma Fields High
Lal Qilla High
India Gate High & Mid
Kohinoor High & Mid
Daawat Mid
Tilda Mid
Major Brands & Positioning

7. Major rice millers

8. Market insights
There are two kind of players in Basmati Market:
•National Brands: their presence is strong in urban areas
•Local Players who are competing by trade relationships & price discounts.
Demand – Supply Scenario
•There has been a steady increase in the number of national brands with many companies in the food segment and
FMCG category entering this category
•Certain areas have few dominant local players which have relied mostly on their trade relationship to push their
products
•The urban consumers who visit modern retailers mostly prefer branded rice
•Slowly branded rice is finding acceptance in Tier 2 and 3 towns

9. Category Value determinants
•Price (because of high level of price sensitivity)
•Quality
•Availability

10. Marketing Channels
As it is a low involvement and highly price sensitive product, channels play a significant role in ensuring - availability
and controlling the price
Considering the Segmentation and Target markets as mentioned earlier,
2-channel strategy needs to be adopted
Modern retail- includes Supermarkets, Hypermarkets and Large retailers .
Traditional channel – In certain localities for easy availability to customers.
In the coming years i.e. 2nd or 3rd year
Trade margins
Trade margins play a significant role in sales as the store keepers tend to push those products. So a higher margin in
comparison to the competitors needs to be given to create the initial push to the brand.

11. Marketing Communications Mix
Sales promotion- To create the initial pull towards the brand by offering short term offers
Events and Experiences- Sponsoring a Cookery show on TV grabs eyeballs which provides a highly targeted
communication .
Interactive marketing- Providing innovative recipe ideas using the brand’s rice through its online channel, facebook
page, blogs and engaging with its customers .
Advertising: Cost effective Localized advertising and promotional activities like In-store promotions and visual
display aides.
These activities should help achieve:
•Brand name awareness – measured based on recognition, recall and “top of mind”
•Brand loyalty – Segmented into non customers, price switchers, passively loyal, fence sitters and committed and
moving them to the next higher level
•Improvement in Perceived quality

12. Summarizing…
•Going for a regional launch and then slowly moving on for a nation wide launch by gauging the response.
•Launching a few variants initially and then bringing in the other variants in a phased manner .
• High focus on the modern retail channels along with a small traditional channel to complement it .
• Trade promotions and discounts are the drivers to sale and less spending on traditional marketing channels
like TV and print .
i.e. Higher emphasis on Below the line activities over above the line as it suits the category under
consideration.

13. What major rice brand are doing online & Offline?

16. Dilnoor : Insight & Design

17. Poster/Print Ad

18. Danglers

19. Facebook post

20. Facebook cover

21. Hoarding/outdoor

23. Standee

24. Retail Outlet Board

26. Thank you