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MARKETING OF INDIAN
SPICES.
Presented by: NIKHIL NANDAKUMAR
KADAM
roll no : 153010003
PGFDC – VJTI , MUMBAI
Introduction
Spices are non-leafy parts (e.g. bud, fruit, seed,
bark, rhizome, bulb) of plants used as a
flavoring or seasoning, although many can also
be used as a herbal medicine. A closely related
term, ‘herb’, is used to distinguish plant parts
finding the same uses but derived from leafy or
soft flowering parts. The two terms may be used
for the same plants in which the fresh leaves are
used as herbs, while other dried parts are used as
spices, e.g. coriander, dill.
Spices are no longer regarded as wonders of
medicine, but they still play an important part in
the manufacture of many cosmetics and
perfumes and are grown commercially for their
coloring and preservative properties. Nutmeg
and mace are no longer the main crops of the
Moluccas, but instead are grown on a large scale
on the West Indian island of Grenada. Cloves,
however, still come from Madagascar and
Zanzibar-names that are still evocative and
romantic and hint strongly of spices.
Spices can be aromatic or pungent in flavors
and peppery or slightly bitter in taste. In order to
keep their fragrance and flavor intact, they are
generally added in the cooking recipes at the last
moments since, prolonged cooking results in
evaporation of essential oils.
Spices are being used in the preparation of
season soups, barbecue sauces, pickling and as
a main ingredient in a variety of curry powders.
Spices along with some seasonal herbs are being
used to enhance the flavor and taste of
vegetable, chicken, fish and meat dishes.
Overview of Indian spices
 The story of Indian Spices is more than 7000 years old
Centuries before Greece and Rome had been discovered.
 The largest produced spice in India is Chilies , followed
by Turmeric and Garlic.
 India is the largest producer of Red Dry chilly in the
world in which the high contribution was given by
Rajasthan
 India is second largest producer of Garlic in the world
after china.
 Because of this , our company would have larger
opportunity to grow our business through export of
Indian spices in foreign countries.
 In part from uniqueness, our company would produce
only organic spices so the view point of customer for
our company will improve.
 Because of many spice are only available in India so its
big opportunity for our company to improve our
distribution channel and increase export in different
country.
 Our head quartered would be in Rajasthan & Unja
because the most of spices are producing around that
place.
 First try to expand business at initial market.
6
Spice Marketing depends
on
Manufacturing Plant Detailed Project
Report, Profile, Business plan,
Industry Trends, Market Research,
Survey, Manufacturing Process,
Machinery, Raw Materials, Feasibility
Study, Investment Opportunities, Cost
and Revenue
EASE OF DOING BUSINESS
Single Window Clearance Mechanism
One online
platform for
multiple
departments
& forms
Time
Bound
Clearances
for fast track
clearances
Executive
Committee
for priority
cases
Customized
Packages
Focus on Improving Business Climate
• Amendment in labor act to improve doing business
• Industrial Dispute Act : limit raised to 300 for layoff,
retrenchment or closure
• Factories Act: threshold increased to 20 and 40
• Contract Labour Act: number of workers raised to 50
• Amendments in Apprentice Act to encourage training
• Boiler inspection by 3rd party agencies
• Online application and granting of approvals
• Encouraging self-certification
• Green category industry can get environmental clearances upon
application
Labour
Environmental Clearance
Incentivizing Manufacturing & Services Enterprises
50%
exemption
► VAT & CST for seven years
► Electricity Duty, Land Tax and Mandi Fee for
seven years
► Stamp Duty
► Land conversion charges
Additional
Incentives
Investment Promotion Scheme by Government of India
► Incentives for thrust sectors
► Customized Incentive Package
► 100% exemption on Entry tax
► Investment in backward districts
Clients from our broad-based overseas markets must highly
satisfied with the Spice Products we bring for them from
most dependable manufacturers.
packing - as per requirement.
Spices Products offered by us is in great demand for lending
aroma, taste and natural brightness, making every dish
palatable to the last bite.
Ensure the Spice are grown under most nonhazardous
manner.
32
CHILLI
41.1%
CARDAMOM (S)
0.2%
MINT PRODUCTS
1.7%
VANILLA
0.01%
OILS & OLEORESINS
2.8%
TURMERIC
12.8%
PEPPER
4.2%
CUMIN
4.1%
CORIANDER
10.1%
CURRY POWDER
2.31%
GINGER
3.9%
OTHER SEEDS
10.7%
OTHER SPICES
6.1%
MAJOR PRODUCT SEGMENTS IN EXPORTS
OF SPICES
VALUE: 2004-05
33
o FINANCIAL SUPPORT FOR:
 ADOPTION OF HI-TECH IN SPICE PROCESSING
 SETTING UP/UPGRADATION OF QC LABORATORY
 ISO/HACCP CERTIFICATION
 PRODUCT/BRAND PROMOTION, PACKAGING
DEVELOPMENT
 PARTICIPATION IN TRADE FAIRS
 PRINTING OF PROMOTIONAL LITERATURES
EXPORT PROMOTION SCHEMES OF
SPICES BOARD
34
NEW INITIATIVES
 Focus on Retail
 Foray into Branding
 Expanding Product Portfolio
 High Value Spices
Herbal Spices, Organic Spices & Vanilla
 Brand Promotion
 Cardamom Marketing
35
TECHNOLOGY DECIDES THE
WINNER
 BY ENHANCING PRODUCTIVITY
 BY ADDING NEW FEATURES
 BY ADDING MORE CONVENIENCE
 BY REDUCTING COST
36
ADOPTION OF HIGH-TECH PROCESSES &
TECHNOLOGY UPGRADATION
 SUPER CRITICAL EXTRACTION
 CRYO GRINDING
 STEAM STERILIZATION
 QUALITY SYSTEMS
Market prospective
• We found that the most of the spices are producing in
only India so we have opportunity to export more and
more out side India.
EAST ASIA
37%
OTHER EUROPE
0%
AMERICAN ZONE
27%
AUST.&OCEANIC ZONE
1%
EUROPEAN UNION
21%
OTHERS
1%
WEST ASIA
9%
AFRICAN ZONE
4%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
• This data indicate the export of organic spice, and we can
see that during the 2008 to 2014 the export of this product
was increase so its high grow potential for our company.
Product & service
• We have mainly 5 product are producing named
PEPPER,CARDAMOM( Small and
large),CHILLI,VANILLA,GINGER.
• First of all we have to survive in domestic market than
we export outside India.
• We are providing this product in foreign county as well
as in India.
• Our product was different as compare to
quality, packing, technology, value and range
of product.
39
Market Competition
• Their are many competitors in the market
like M.D.H , Ramdev masala , Everest,
etc
• We also provide door to door service.
• Our product was pass all the govt quality
certificate eg. ISO, sahara, etc
40
Marketing & Customer
Acquisition
• News paper advertisement.
• Attracting common people.
• Perception is to also acquire rural area.
• Cash discount policy.
41
Traction or Progress
• Promotion in City Area like Mumbai
,Ahmadabad,Pune, kolkata,jaipur,etc.
• Marketing strategies also unique.
• Consulting advertising agency also.
• Using e-commerce platform.
42
Intellectual property
• Companies head quarter in Rajasthan.
• We also join with local suppliers.
• And also connect with unja’s market yard
suppliers.
• Isabgul is one of spice which is lead by
India in export.
43
Financing round
•First of all we attract our customer to
invite for investment.
•If our company's financial need not
satisfied we also get money from
FPO.(flow on public offer)
44
Financials
• Get finance from banks.
• Individual entrepreneur/creditors.
• Market share of investor.
45
Minimum viable product
• We also initiate a retail chain to reach to
the customer.
• And also advancing technology.
• We also use e-commerce sites.
• And also reach to customer to attract.
46
Risk
 Compete rural & urban company .e.g
Ramdev, MDH, Rajani , MTR, EVEREST,
etc.
 Govt. Policy also depend on our risk taking
ability.
End game
 If we do not achieve target of 2 lakhs per
year we will close our firm.
 After 6 months we will close firm.
47
“INDIA SPICE MARKET OUTLOOK TO FY’2018” report
 According to the research report “India Spices Market Outlook to FY’2018:
Spice Mixes and Branded Spices to Augment Industry Revenues” by Ken
Research, the spices market would grow at a considerable CAGR rate thus
exceeding over USD 16,600 million by FY2018 due to the major push from
spice mixes and branded spices segment in India.
 “The rising demand for spice mixes and branded spices will result in
increased spending on spices in India, according to the Research Analyst,
Ken Research.
 http://www.kenresearch.com/agriculture-food-beverages/food/india-spice-
market-research-report/415-104.html
 The report provides detailed overview on the spices market in India and
aids readers to identify the ongoing trends in the industry and anticipated
growth in future depending upon changing industry dynamics in coming
years. The report will help industry consultants, spices companies and other
stakeholders align their market centric strategies according to ongoing and
expected trends in future.
MEDIA IMPLEMENTATION:
Support Mediums:
••Content placement in Newspapers like Sunday Midday, HT City,TOI
reinforcing Healthy Start this Diwali with Recipes using masala Oats
this Diwali along with Masala Oats branding
••Twitter (Digital)- The Healthy Diwali can be promoted as a consumer
engagement contest where the audience can key in their tweets around
Healthy Diwali. This will drive home the brand message as well as
promote the brand.
••Mobile App Advertising- Brand advertising will be done on Mobile Apps
that are popular and revolve around food, like Sweet N Spicy, Indian
Recipes!, Quick and Easy Recipes, My Recipes, all available on Google
Play Store
••Advertising funded content on shows like Health Mange More Food
where recipes can be prepared just before Diwali
••Outdoor hoardings and Ambient advertising will be placed across the
city to communicate the message
MEDIA IMPLEMENTATION:
•Shopper Marketing:
••In retail stores like Hypercity, Food Bazaar, Best Price whenever someone purchases
Masala, a special recipe using the product and other items shopped will be generated at
the back of the bill with branding.
••Eg: If the consumer has bought a Masala packet along with Spinach and atta, a recipe for
Spinach masala Paratha can be generated.
•Support Mediums:
••Radio: RJ’s will talk about their Healthy starts this Diwali as content on the show
and can run a contest where listeners can call in with their Healthy Starts this Diwali.
This can be followed by brand advertising reinforcing the brand message. This will be
done during Primetime.
FEASIBILTY & WHY THIS WILL WORK?
•• Our Brand is extremely well connected with Health and hence this
connection will be easily shifted to its product offering, Masala , thus gaining
consumer trust working in favour of the brand
•• This campaign targets to the consumers right when they feel the need for it the
most, hence generating a better connect with the audiences
•• This campaign will also work in favour of the parent company with the
message of Health, that the parent brand stands for, getting reinforced amongst the
consumers
Few Indian Major Players are
A V T Mccormick Ingredients Pvt. Ltd.
A V Thomas Intl. Ltd.
Chordia Food Products Ltd.
Devon Foods Ltd.
Eastern Overseas Ltd.
Empire Spices & Foods Ltd.
Indian Chillies Trdg. Co. Ltd.
Indian Products Ltd.
J C R Drillsol Pvt. Ltd.
Jamnadas Madhavji Intl. Ltd.
M T R Foods Pvt. Ltd.
Madhur Industries Ltd.
N H C Foods Ltd.
Nedspice Processing India Pvt. Ltd.
Ramdev Food Products Pvt. Ltd.
S T C L Ltd.
Shalimar Chemical Works Pvt. Ltd.
Swani Spice Mills Pvt. Ltd.
Vinayak Ingredients (India) Pvt. Ltd.
Kedar Spices Ltd.
54
QUALITY CERTIFICATION SYSTEM
AWARDED TO PROCESSOR EXPORTERS HAVING EXCLUSIVE FACILITIES FOR
MEETING PRESCRIBED STANDARDS OF QUALITY PROCESSING
AWARDED TO EXPORTERS OF SPICES INCLUDING MERCHANT
EXPORTERS OF BRANDED CONSUMER PACKS/INSTITUTIONAL PACKS
THANK YOU!

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MARKETING OF INDIAN SPICES.

  • 1. MARKETING OF INDIAN SPICES. Presented by: NIKHIL NANDAKUMAR KADAM roll no : 153010003 PGFDC – VJTI , MUMBAI
  • 2. Introduction Spices are non-leafy parts (e.g. bud, fruit, seed, bark, rhizome, bulb) of plants used as a flavoring or seasoning, although many can also be used as a herbal medicine. A closely related term, ‘herb’, is used to distinguish plant parts finding the same uses but derived from leafy or soft flowering parts. The two terms may be used for the same plants in which the fresh leaves are used as herbs, while other dried parts are used as spices, e.g. coriander, dill.
  • 3. Spices are no longer regarded as wonders of medicine, but they still play an important part in the manufacture of many cosmetics and perfumes and are grown commercially for their coloring and preservative properties. Nutmeg and mace are no longer the main crops of the Moluccas, but instead are grown on a large scale on the West Indian island of Grenada. Cloves, however, still come from Madagascar and Zanzibar-names that are still evocative and romantic and hint strongly of spices.
  • 4. Spices can be aromatic or pungent in flavors and peppery or slightly bitter in taste. In order to keep their fragrance and flavor intact, they are generally added in the cooking recipes at the last moments since, prolonged cooking results in evaporation of essential oils. Spices are being used in the preparation of season soups, barbecue sauces, pickling and as a main ingredient in a variety of curry powders. Spices along with some seasonal herbs are being used to enhance the flavor and taste of vegetable, chicken, fish and meat dishes.
  • 5. Overview of Indian spices  The story of Indian Spices is more than 7000 years old Centuries before Greece and Rome had been discovered.  The largest produced spice in India is Chilies , followed by Turmeric and Garlic.  India is the largest producer of Red Dry chilly in the world in which the high contribution was given by Rajasthan  India is second largest producer of Garlic in the world after china.
  • 6.  Because of this , our company would have larger opportunity to grow our business through export of Indian spices in foreign countries.  In part from uniqueness, our company would produce only organic spices so the view point of customer for our company will improve.  Because of many spice are only available in India so its big opportunity for our company to improve our distribution channel and increase export in different country.  Our head quartered would be in Rajasthan & Unja because the most of spices are producing around that place.  First try to expand business at initial market. 6
  • 7. Spice Marketing depends on Manufacturing Plant Detailed Project Report, Profile, Business plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue
  • 8. EASE OF DOING BUSINESS
  • 9. Single Window Clearance Mechanism One online platform for multiple departments & forms Time Bound Clearances for fast track clearances Executive Committee for priority cases Customized Packages
  • 10. Focus on Improving Business Climate • Amendment in labor act to improve doing business • Industrial Dispute Act : limit raised to 300 for layoff, retrenchment or closure • Factories Act: threshold increased to 20 and 40 • Contract Labour Act: number of workers raised to 50 • Amendments in Apprentice Act to encourage training • Boiler inspection by 3rd party agencies • Online application and granting of approvals • Encouraging self-certification • Green category industry can get environmental clearances upon application Labour Environmental Clearance
  • 11. Incentivizing Manufacturing & Services Enterprises 50% exemption ► VAT & CST for seven years ► Electricity Duty, Land Tax and Mandi Fee for seven years ► Stamp Duty ► Land conversion charges Additional Incentives Investment Promotion Scheme by Government of India ► Incentives for thrust sectors ► Customized Incentive Package ► 100% exemption on Entry tax ► Investment in backward districts
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  • 31. Clients from our broad-based overseas markets must highly satisfied with the Spice Products we bring for them from most dependable manufacturers. packing - as per requirement. Spices Products offered by us is in great demand for lending aroma, taste and natural brightness, making every dish palatable to the last bite. Ensure the Spice are grown under most nonhazardous manner.
  • 32. 32 CHILLI 41.1% CARDAMOM (S) 0.2% MINT PRODUCTS 1.7% VANILLA 0.01% OILS & OLEORESINS 2.8% TURMERIC 12.8% PEPPER 4.2% CUMIN 4.1% CORIANDER 10.1% CURRY POWDER 2.31% GINGER 3.9% OTHER SEEDS 10.7% OTHER SPICES 6.1% MAJOR PRODUCT SEGMENTS IN EXPORTS OF SPICES VALUE: 2004-05
  • 33. 33 o FINANCIAL SUPPORT FOR:  ADOPTION OF HI-TECH IN SPICE PROCESSING  SETTING UP/UPGRADATION OF QC LABORATORY  ISO/HACCP CERTIFICATION  PRODUCT/BRAND PROMOTION, PACKAGING DEVELOPMENT  PARTICIPATION IN TRADE FAIRS  PRINTING OF PROMOTIONAL LITERATURES EXPORT PROMOTION SCHEMES OF SPICES BOARD
  • 34. 34 NEW INITIATIVES  Focus on Retail  Foray into Branding  Expanding Product Portfolio  High Value Spices Herbal Spices, Organic Spices & Vanilla  Brand Promotion  Cardamom Marketing
  • 35. 35 TECHNOLOGY DECIDES THE WINNER  BY ENHANCING PRODUCTIVITY  BY ADDING NEW FEATURES  BY ADDING MORE CONVENIENCE  BY REDUCTING COST
  • 36. 36 ADOPTION OF HIGH-TECH PROCESSES & TECHNOLOGY UPGRADATION  SUPER CRITICAL EXTRACTION  CRYO GRINDING  STEAM STERILIZATION  QUALITY SYSTEMS
  • 37. Market prospective • We found that the most of the spices are producing in only India so we have opportunity to export more and more out side India. EAST ASIA 37% OTHER EUROPE 0% AMERICAN ZONE 27% AUST.&OCEANIC ZONE 1% EUROPEAN UNION 21% OTHERS 1% WEST ASIA 9% AFRICAN ZONE 4%
  • 38. 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 • This data indicate the export of organic spice, and we can see that during the 2008 to 2014 the export of this product was increase so its high grow potential for our company.
  • 39. Product & service • We have mainly 5 product are producing named PEPPER,CARDAMOM( Small and large),CHILLI,VANILLA,GINGER. • First of all we have to survive in domestic market than we export outside India. • We are providing this product in foreign county as well as in India. • Our product was different as compare to quality, packing, technology, value and range of product. 39
  • 40. Market Competition • Their are many competitors in the market like M.D.H , Ramdev masala , Everest, etc • We also provide door to door service. • Our product was pass all the govt quality certificate eg. ISO, sahara, etc 40
  • 41. Marketing & Customer Acquisition • News paper advertisement. • Attracting common people. • Perception is to also acquire rural area. • Cash discount policy. 41
  • 42. Traction or Progress • Promotion in City Area like Mumbai ,Ahmadabad,Pune, kolkata,jaipur,etc. • Marketing strategies also unique. • Consulting advertising agency also. • Using e-commerce platform. 42
  • 43. Intellectual property • Companies head quarter in Rajasthan. • We also join with local suppliers. • And also connect with unja’s market yard suppliers. • Isabgul is one of spice which is lead by India in export. 43
  • 44. Financing round •First of all we attract our customer to invite for investment. •If our company's financial need not satisfied we also get money from FPO.(flow on public offer) 44
  • 45. Financials • Get finance from banks. • Individual entrepreneur/creditors. • Market share of investor. 45
  • 46. Minimum viable product • We also initiate a retail chain to reach to the customer. • And also advancing technology. • We also use e-commerce sites. • And also reach to customer to attract. 46
  • 47. Risk  Compete rural & urban company .e.g Ramdev, MDH, Rajani , MTR, EVEREST, etc.  Govt. Policy also depend on our risk taking ability. End game  If we do not achieve target of 2 lakhs per year we will close our firm.  After 6 months we will close firm. 47
  • 48. “INDIA SPICE MARKET OUTLOOK TO FY’2018” report  According to the research report “India Spices Market Outlook to FY’2018: Spice Mixes and Branded Spices to Augment Industry Revenues” by Ken Research, the spices market would grow at a considerable CAGR rate thus exceeding over USD 16,600 million by FY2018 due to the major push from spice mixes and branded spices segment in India.  “The rising demand for spice mixes and branded spices will result in increased spending on spices in India, according to the Research Analyst, Ken Research.  http://www.kenresearch.com/agriculture-food-beverages/food/india-spice- market-research-report/415-104.html  The report provides detailed overview on the spices market in India and aids readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, spices companies and other stakeholders align their market centric strategies according to ongoing and expected trends in future.
  • 49. MEDIA IMPLEMENTATION: Support Mediums: ••Content placement in Newspapers like Sunday Midday, HT City,TOI reinforcing Healthy Start this Diwali with Recipes using masala Oats this Diwali along with Masala Oats branding ••Twitter (Digital)- The Healthy Diwali can be promoted as a consumer engagement contest where the audience can key in their tweets around Healthy Diwali. This will drive home the brand message as well as promote the brand. ••Mobile App Advertising- Brand advertising will be done on Mobile Apps that are popular and revolve around food, like Sweet N Spicy, Indian Recipes!, Quick and Easy Recipes, My Recipes, all available on Google Play Store ••Advertising funded content on shows like Health Mange More Food where recipes can be prepared just before Diwali ••Outdoor hoardings and Ambient advertising will be placed across the city to communicate the message
  • 50. MEDIA IMPLEMENTATION: •Shopper Marketing: ••In retail stores like Hypercity, Food Bazaar, Best Price whenever someone purchases Masala, a special recipe using the product and other items shopped will be generated at the back of the bill with branding. ••Eg: If the consumer has bought a Masala packet along with Spinach and atta, a recipe for Spinach masala Paratha can be generated. •Support Mediums: ••Radio: RJ’s will talk about their Healthy starts this Diwali as content on the show and can run a contest where listeners can call in with their Healthy Starts this Diwali. This can be followed by brand advertising reinforcing the brand message. This will be done during Primetime. FEASIBILTY & WHY THIS WILL WORK? •• Our Brand is extremely well connected with Health and hence this connection will be easily shifted to its product offering, Masala , thus gaining consumer trust working in favour of the brand •• This campaign targets to the consumers right when they feel the need for it the most, hence generating a better connect with the audiences •• This campaign will also work in favour of the parent company with the message of Health, that the parent brand stands for, getting reinforced amongst the consumers
  • 51. Few Indian Major Players are A V T Mccormick Ingredients Pvt. Ltd. A V Thomas Intl. Ltd. Chordia Food Products Ltd. Devon Foods Ltd. Eastern Overseas Ltd. Empire Spices & Foods Ltd. Indian Chillies Trdg. Co. Ltd. Indian Products Ltd. J C R Drillsol Pvt. Ltd. Jamnadas Madhavji Intl. Ltd.
  • 52. M T R Foods Pvt. Ltd. Madhur Industries Ltd. N H C Foods Ltd. Nedspice Processing India Pvt. Ltd. Ramdev Food Products Pvt. Ltd. S T C L Ltd. Shalimar Chemical Works Pvt. Ltd. Swani Spice Mills Pvt. Ltd. Vinayak Ingredients (India) Pvt. Ltd. Kedar Spices Ltd.
  • 53.
  • 54. 54 QUALITY CERTIFICATION SYSTEM AWARDED TO PROCESSOR EXPORTERS HAVING EXCLUSIVE FACILITIES FOR MEETING PRESCRIBED STANDARDS OF QUALITY PROCESSING AWARDED TO EXPORTERS OF SPICES INCLUDING MERCHANT EXPORTERS OF BRANDED CONSUMER PACKS/INSTITUTIONAL PACKS
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