Sachin and Virag started a mushroom cultivation business after graduating from IIM Bangalore. Their first batch was successful selling to a hotel in Bangalore. They now aim to sell mushrooms across India but need advice on marketing and distribution. For marketing, they could create awareness through samples to restaurants and stores, social media influencers, and participation in food events. For distribution, they need cold storage and fast delivery through local vans and cargo services to get the perishable product to consumers.

1. EXERCISE #5: CASE STUDY
MARKETING AND DISTRIBUTION
OF MUSHROOM
B Y S H E R I N T H O M A S

2. WHAT IS THE CASE?
Sachin and Virag are two enterprising youth. They have
passed out from IIM, Bangalore. They thought instead of
doing a job, they will launch fresh vegetables in Indian
markets. Having learnt of the future conventional foods,
they decided to venture into cultivation of mushrooms.
Mushrooms are known to be the best alternative food for
vegetarians. For Sachin and Virag fund raising was a
serious handicap for mass production. However, the first
trial batch of mushrooms that they produced was bought
by Star Hotel in Bangalore. Further, the hotel placed
orders for supply of 20 kgs every day. Now mushroom
industry is run by small entrepreneurs, like Sachin and
Virag. Another big player M/s Ashtavinayak Mushrooms,
equipped with cold storage facility was more interested in
the export market. Sachin and Virag have set their sights
high. They aim to sell mushrooms in a very big way all
over India. Mushrooms have a great market potential and
is a perishable food.

3. QUESTIONS?
A. How will you advise Sachin and
Virag, as how to increase the
consumer awareness about this
new food?
B. What would be your suggestions
for distribution channel for
mushrooms?

4. POSSIBLE SOLUTIONS FOR - Q.1
Consumer awareness can be created by following a
proper marketing channel.
Samples can be distributed in all the restaurants,
hotels and super markets.
By running digital media campaigns about how
organic and fresh their product is and narrowing
down their target audience .
They can also collaborate with social media
influencers and food bloggers and chefs to promote
their products.

5. They can use attractive, sustainable and environment friendly
packaging to attract customers.
They can participate in food fairs and organic markets to tell the
nutritional and health benefits of their product.
A good product launch could help them to seek attention from their
potential consumers.
They can create awareness by advertising about their new product
launch event in newspapers and online media.
House to house promotion by sales person can also help.

6. POSSIBLE SOLUTIONS FOR - Q2
Company should have good storage facility to store their products
as its perishable there will be more chances of the product to
decay soon. So cold storage facility is must.
Seeing the shelf life of the product faster distribution channels
should be used to reach the customer.
Matador delivery vans can be used to deliver the product in local
markets and trains and cargo services can be used to send it
further in different region.
Effective distribution channels can be created starting from
manufacturer to till it reach it's end consumers.