This document provides a market study and marketing plan for frozen potato products in the Indian market. It analyzes the large and growing food and frozen food market in India. The frozen potato products market is currently dominated by one major player, but there is scope to introduce new product types and gain market share. The marketing strategy proposes establishing a distribution network in North and West India initially to target a 10-15% national market share within 18-24 months. The plan details promotional activities, sales segmentation and geography.

1. FROZEN POTATO PRODUCTS INDIAN MARKET
STUDY
&
A MARKETING PLAN
BY: VIKAS SOOD
E-mail: vikassood65@gmail.com
Feb-2017

2. 1- MARKET
STUDY
a.) FOOD & FROZEN FOOD
MARKET
b.) FROZEN POTATO
PRODUCTS
*Info from secondary sources
& trade.

3. 1)ESTIMATED TOTAL FOOD MARKET IS ABOUT $300
Bn (Rs. 2 LAC CRORE) OUT OF WHICH 30-35% (Rs
60000 CRORE) IS PROCESSED FOOD MARKET.
2)FOOD RETAIL MARKET SIZE IN 2014- Rs. 25 LAC
CRORE WHICH IS LIKELY TO GO TO RS 61 LAC
CRORE IN 2020.
3)FOOD SERVICE MARKET IN 2015 WAS ABOUT Rs.
7 LAC CRORE & IS INCREASING CONTINUOUSLY.
THE STAND ALONE OUTLETS HAVE A VERY BIG
SHARE.
4)FROZEN FOOD MARKET WAS PROJECTED TO
DOUBLE IN 2019 FROM 2015.GROWTH RATE IS
ABOUT 20-25%. PA
ABOUT FOOD
MARKET

4. 6.) OF THE TOTAL FROZEN VEG. FOOD MARKET 60-
65% IS FROZEN SNACKS MARKET & THE % SHARE
IS DEPLETING
VIZ-A-VIZ FROZEN VEGETABLES.
7.) THE MAJOR FROZEN FOODS CONSIDERED ARE:
CHICKEN,MUTTON,PORK/VEG./SEA-FOOD & FISH
PRODUCTS.
8.) MOST POPULAR RETAIL PACK SIZE IS 300-500
GMS & THAN 0-300 GMS. CUSTOMERS START WITH
SMALLER PACKS INITIALLY & GRADUALLY SHIFT TO
BIGGER PACKS.
9.)THE CUSTOMER PREFER READY TO COOK/READY

5. 10.) RETAIL MARKET TO FOOD SERVICE MARKET
RATIO IS ABOUT 40:60, BUT RETAIL MARKET’S
GROWTH RATE IS MORE THAN THAT OF THE
FOOD SERVICE MARKET.
11.) IN RETAIL MARKET, SALES RATIO OF SMALL-
RETAIL TO RETAIL CHAINS (MODERN RETAIL) IS
ABOUT 50:50.
12.) VERY SELECTED NATIONAL BRANDS EXIST IN
FROZEN VEG. & SNACKS MARKET. MOSTLY ALL
CO’S FOCUS ON 1 CATEGORY OF PRODUCTS.
13.) ONLY SMALL/REGIONAL PLAYERS EXIST IN
ETHNIC INDIAN FROZEN SNACKS MARKET.

6. 15.) NATIONALLY, MOTHER DAIRY LEADS IN
FROZEN VEG. PRODUCTS, WITH ALMOST 50-55%
SHARE. REST ARE REGIONAL PLAYERS.
16.) IN FROZEN VEGETABLES, FROZEN GREEN
PEAS COMMAND ALMOST 70% SHARE & IS WIDELY
ACCEPTED PRODUCT.
17.) THERE IS CONSUMPTION DIVERSITY OF
VARIOUS FOOD PRODUCTS IN INDIA ACROSS
REGIONS.
18) ALMOST 30-35% OF THE INDIAN POPULATION
IS OF TOTAL VEGETARIANS.
19) CONSUMER BRAND LOYALTY IS STRONG &
INSTORE /WET-SAMPLING PROMOTIONS ARE VERY

7. POTATO PRODUCTS
1) UNTIL THE EARLY 1990S, MOST POTATOES WERE
GROWN AND CONSUMED IN EUROPE, NORTH AMERICA
& COUNTRIES OF THE FORMER SOVIET UNION.
2) DRAMATIC INCREASE IN POTATO PRODUCTION &
DEMAND IN ASIA, AFRICA AND LATIN AMERICA, WHERE
OUTPUT ROSE FROM LESS THAN 30 MN T IN THE EARLY
1960”S TO MORE THAN 165 MN T IN 2007.
3) IN 2005,FOR THE FIRST TIME, THE DEVELOPING
WORLD'S POTATO PRODUCTION EXCEEDED THAT OF
THE DEVELOPED WORLD.
4) INDIA IS SECOND LARGEST POTATO PRODUCER
(45,000,000 T IN 2014:FAO) SECOND TO CHINA & BOTH
TOGETHER PRODUCE A THIRD OF TOTAL WORLD

8. 5.) FROZEN PRODUCTS’ MARKET IS TOTALLY SNACKS’
PRODUCTS, AND NO MAIN-COURSE/MEALS ARE
AVAILABLE.
6.) MARKET IS DOMINATED BY MC-CAINS,
COMMANDING
ALMOST 80% SHARE, BOTH IN RETAIL AND FOOD-
SERVICE SEGMENTS. OTHER SIGNIFICANT PLAYERS
ARE YUMMIEZ & SUMERU
7) HIGH BRAND LOYALITY EXISTS FOR MC CAINS
PRODUCTS BEING FIRST ENTRANT & AGGRESSIVE
MARKETER.

9. 8.) THE SELLING RATIO OF FROZEN FRENCH FRIES
VS. FORMED POTATO PRODUCTS IS ABOUT 50:50.
9.) THE SELLING RATIO BETWEEN RETAIL AND FOOD-
SERVICE MARKETS IS ALSO ABOUT 60:40.
10.)PRESENT TOTAL FROZEN POTATO PRODUCTS
MARKET(EXCEPT QSR) IS ESTIMATED TO BE AROUND
3,000-4000 TONNES/ MNTH.

10. 10) APPROXIMATE PRICE REALIZATION FOR FORMED POTATO PRODUCTS IS ABOUT
RS.100-110/KG, AND FRENCH FRIES RS 75-80 DEPENDING ON PRODUCT & LOCAL
TAXES ETC.

11. MARKET SCOPE-
POTATO
PRODUCTS

12. 1)PROCESSED FOOD MARKET, INCLUDING
FROZEN FOOD MARKET IS
CONTINUOULSY GROWING.
2)BOTH END CONSUMER & FOOD SERVICE
ARE ADAPTING POTATO PRODUCTS
RAPIDLY DUE TO INC. AVAILABILITY,
CONVENIENCE AT RIGHT PRICE POINT.
3)SCOPE EXISTS FOR MORE FOOD SERVICE
SPECEFIC PRODUCTS & ALSO FOR
ETHNIC INDIAN, OVEN READY,
MICROWABALE PRODUCTS FOR
CONSUMER MARKET.

13. 1) MARKET IS EXPANDING WITH BETTER
INFRASTRUCTURE, GROWTH OF ORGANIZED
RETAIL & FOOD SERVICE MARKETS.
2) USER FRIENDLY CONVENIENCE PRODUCTS WITH
HIGHER VALUE ADDITION HAVE BETTER FUTURE.
3) SINCE HIGHLY RATED PRODUCTS ALREADY
RULE THE MARKET, THE PRODUCTS PROVIDED
HAVE TO BE OF COMPARABLE/ BETTER QUALITY
& BETTER TASTING.
4) AS CONSUMERS ARE GETTING HEALTH
CONSCIOUS, NON-FRIED PRODUCTS WILL GAIN
MORE POPULARITY GRADUALLY.

14. MARKETING
STRATEGY
*For North based
plant.

15. 1)TO ESTABLISH DISTRIBUTOR/ WHOLE
SELLERS NETWORK IN ALL METROS &
MAJOR CITIES OF NORTH & WEST INDIA FOR
PROVING PRODUCTS TO CONSUMERS &
FOOD SERVICE SEGMENT.
2)TARGET 10-15% SHARE ON NATIONAL BASIS
IN FROZENPOTATO PRODUCTS IN 18-24
MONTHS TIME.
3)INITIATE & FORM BUSINESS RELATION WITH
LARGE BUYERS /RESELLERS IN MODERN
RETAIL, HORECA , QSR & ONLINE RETAILING.
4)IN RETAIL, FOCUS ON ORGANIZED RETAIL AS
THEY HAVE BETTER SELLING

16. 5.) PROVIDE CUSTOMERS ‘VALUE FOR MONEY’
FOR RAPID GAINS IN THE MARKET.
6.) USAGE OF ‘SLIDING SCALE’ PRICING FOR
VOLUME CUSTOMERS.
7.) ELABORATE USAGE OF BTL & SOCIAL
MEDIA MARKETING FOR BRAND AWARENESS
& BUILDING BUSINESS IN CONSUMER MARKET.
8.)HAVING EXPERIENCED, STRONG SALES
TEAM, BUILDING EFFECTIVE SALES
MANAGEMENT & CRM SYSTEM.
9) DEVELOP SNACKS KIOSK MODEL FOR SIS IN
RETAIL CHAINS & IN MALLS FOR NCR.

17. SALES PLAN
a.) SEGMENT PLAN
b.) GEOGRAPHICAL PLAN

18. SEGMENT PLAN
1) HORECA: HOTELS, RESTAURANTS, BANQUETS, CATERERS,
HALWAI,FAST FOOD JOINTS, CAFÉ, BARS ETC.
2) QSR CHAINS: DIRECT/ SUPER STOCKIST.
3) SMALL RETAIL: THROUGH DISRTRIBUTORS.
4) RETAIL CHAINS : DIRECT/ SUPER-STOCKIST/DISTRIBUTORS.
5) ONLINE RETAILERS: DIRECT/ SUPER STOCKIST/DISTRIBUTORS
GEOGRAPHICAL PLAN
1) NORTH - WEST & SOUTH INDIA’S METROS, A & B CLASS CITIES

19. PROMOTIONAL
PLAN

20. 1)SALES CALLING & FREE SAMPLING FOR
HORECA BUSINESS.
2)HAVE HORECA SPECIFIC DISTRIBUTORS
WITH EXISTING CLIENT BASE.
3)USAGE OF CHEF FORUMS, COOKERY
SHOWS FOR PRODUCT ENDORSMENT.
4)PARTICIPATION IN TRADE EVENTS,LOCAL
EVENTS & EXIBITIONS.
5)USAGE OF MERCHANDISERS, IN-STORE
PROMOTIONS & WET SAMPLING

21. 7.) USAGE OF CROSS-CATEGORY
PROMOTIONS PERODICALLY.
8.) PERODICAL SPECIAL PROMOTIONS
WITH ORGANIZED RETAIL PLAYERS.
9.) USAGE OF FOCUSSED SMS CAMPAIGN.
10.) USAGE OF DIGITAL MARKETING
,ONLINE TRADE PLATFORMS FOR BRAND
AWARENESS & PROCURRING BUSINESS.
11.)USAGE OF ONLINE RETAILERS FOR
PROMOTING SALES THROUGH SPECIAL
OFFERS.