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MARKETING
STRATEGY OF MTR
( M a r ke t i n g M i x )
G r o u p 8
Add a Footer 2
ABOUT THE
COMPANY
HISTORY
• Began in 1924 with the establishment of the Restaurant by the Maiya family i.e Ganappaya Maiya’s Brahmin
Coffee House.
• In 1975, Maiyas diversified into the business of convenience foods and instant mixes.
• To fuel further growth, MTR became part of Norwegian Company M/s Orkla in 2007.
• It has protected and handed down, its Culinary secrets over the generations
With a VISION of- “Your friend in everyday life”.
• MTR Foods has consolidated its market leadership in the south and is all set for a strong pan India presence
• It has established strong market position in India, Russia and parts of Central and Eastern Europe.
• MTR’S values include
-Brave
-Trustworthy
-Inspiring
3
Milestones:
1. Started Mavalli Tiffin Room – 1950.
2. MTR Pioneers Packaged Foods – 1976.
3. Showed up on Bangalore’s best known chains of stores – Nilgiris’s and Vijaya Bakery’s – 1983.
4. Expanded outside Karnataka – 1984.
5. MTR foods turns into a fully powered enterprises – 1997.
6. Got ISO 9002 & HACCP Certification – 2002.
7. Entry into Japan, China & HongKong – 2006.
8. Became a part of Orkla – 2007.
Reference:
https://www.mtrfoods.com
4
5Add a Footer 5
INDIAN FOOD
PROCESSING INDUSTRY
• It offers Packaged Foods and Beverages
• It accounts for 32% of country’s total food
market.
• It ranked 5th in terms of production,
consumption, export & expected growth among
other Indian industries.
• Demand of Ready-To-Eat items have increased
recently due to :
 Increasing Income Level
 Hectic lifestyle (Convenience Factor)
 Rapid Urbanization
 Increase of women's employment
Add a Footer 6
COMPETITORS
• The Rs 3,000-crore breakfast market is going through a change
with the urban consumers switching from western cereals to
traditional Indian or healthier alternatives.
• “Ecommerce platforms like Amazon, Flipkart and Paytm,
smartphone have helped in penetration and awareness about
nutrition have helped,”
Brands
• ITC (Master Chefs of ITC Hotels)
• MTR Foods
• GITS
• Kohinoor Foods
• Tasty Bite Eatables
• Tops
• Bambino
Reference:
economictimes.indiatimes.com
7
ITC & MTR,
45%
GITS, Kohinoor &
Tasty Bite, 39%
Others, 16%
PACKAGED FOOD (READY TO
EAT) MARKET SHARE
88
SWOT ANALYSIS
STRENGTH
• Healthy, Portable & Time
Saving.
• Use packaging
technology where no
preservatives added.
• Foods retains crispiness,
freshness and homemade
aroma, taste, and flavor.
• Certified with HACCP &
ISO 9002
• Easy Availability
• Affordable Rates
• MTR’s USP is quality of
its product
OPPORTUNITY
• 32% of food market
captured by processed
food
• Opportunity to
substitute other
breakfast items.
• E-commerce Platform
• Govt. Initiatives
WEAKNESS
• Need of Hot Water
• Only Vegetarian
Product
THREAT
• Other Competitors
• Customer Perception
• Health Concerns
PRODUCT
9
 MTR currently has 140+ products on offer under
the following categories:
-Meals
-Mixes
-Ready To Eat
-Confectioneries
-Beverages
-Spices And Masalas
Add a Footer 10
Manufacturing Process
Freeze Drying Process: Vacuum freeze-drying
technology
• Fresh/Cooked food are flash frozen and placed in vacuum
chamber.
• 90% of food’s moisture is drawn off by evaporating at
temperature as low as -50 degree Celsius.
• Freeze – dried food is sealed in moisture-and-oxygen
proof packaging to ensure freshness.
• Addition of hot water so that food gains it’s fresh flavour,
aroma, texture and appearance.
Reference:
https://www.mtrfoods.com/
https://www.hgmachines.com/snacks-processing-
line/savoury-snacks-line/ready-to-eat-food-processing-line
PRODUCT PORTFOLIO
• It offers a range of products as mentioned below:
• Poha
• Vegetable Upma
• Seviyan Upma
• Khatta Meetha Poha
• Masala Oats
• Kesari Halwa
• Available in 3 different types of packaging:
• One Time Use Pouch
• Family Pack
• Cup For ‘on the move’ Customers
3 M I N U T E B R E A K F A S T !
11
PACKAGING
• For the single-use solution, they have developed a LUP pack
pouch.
• In urban centres, the consumer needs their breakfast on-the-go for
the paucity of time. For this, they have developed a Plastic cup
with roto-lock cap made of polypropylene (PP). The cup is
equipped with tamper evident induction seal with a pull tab for
easy opening. The foldable spoon gives an added convenience on-
the-go. (It Cost Rs. 11 per cup)
• For the family or a group of people, they have developed a box
which is similar to that of a Western cereal box.
• In totality, the portfolio mix consists of rigid, semi-rigid and
flexible packaging formats, along with wider space for product
branding.
REFERENCE: https://www.printweek.in/Features/bas-teen-minutes-
mtr-serving-breakfast-29027
12
• In FY17, the ready-to-cook breakfast business brought in 10%
of MTR’s revenue.
• And it expected to increase to 25% in next five years due to 3
minute breakfast line.
• CAGR – 14%
• 20% of revenue from exports.
• Sales in Southern states contribute 60% of its
total revenues.
Follows the following pricing strategies:
• Pocket-friendly and affordable rates.
• Web Portal to reduce its distribution costs.
• Market penetration policy
• Launched in April 2017, the platform helped generate more
than ₹25 crore in the first year of its launch.
REFRENCE: https://www.mtrfoods.com/
PRICE
Prices of 3 Minute Breakfast
• Pouch 60gm - Rs.20.00 -serves 1
• Cup 80gm - Rs.50.00 - serves 1
• Pouch 230gm - Rs. 160.00 – serves 3 to 4
13
DISTRIBUTION
• 900+ Distributors
• 220,000+ Retail Outlets
• 35,000+ Retail Outlets in North.
• In Delhi-NCR region there are 14000+ Retail Outlets.
• Adopted Route to Market Strategy
• Metros and Tier 1 cities.
• Availability at their own stores and in super markets, hyper
markets, discount stores, convenience stores and grocery
stores.
14
15
DISTRIBUTION CHANNEL
 Traditional Trade (Indirect)
• Distribution Margin 8%
• Retailer Margin 12%
 Modern Trade (Direct)
• Profit Margin 20%
16
PROMOTION
16
“We are friends in everyday life”
• Research shows that most Indians preferred to have Indian food for breakfast. But because of time constraint, they choose
cornflakes, oats or muesli.
ONLINE PROMOTION
• Target Customers for promotion
To cater urban population, the young with busy
lifestyles as well as seniors living alone.
Aim to provide convenience to have the breakfast in
minutes.
• Emerging Digital Space- Millennial
A community called Dishcovery where people
share their recipes. It’s an engagement platform of
MTR.
Also, they have social handles as they are present on
Facebook, Twitter, and on YouTube which help them
engage and communicate.
BUDGET
• Rs. 40 crores for the promotion, 30% going
into digital initiatives.
MAJOR CHALLENGES
• Low Penetration
• Perceived Taste
Add a Footer 17
18
VISIBILITY STRATEGY
• Traditional & Modern Trade
PoP displays - visibility of key messages and the process of making the product.
Installed imagery-driven PoP solutions like FSUs and Endcaps.
• Kirana Outlets
Due to space constraint, they developed special counter tops which could be placed at
the billing counter.
• Sampling
• Celebrity promotion
Jiggs Kalra, celebrity chefs
18
INDUSTRIAL VISIT
EVIDENCE
19
THANK
YOU

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Marketing Strategies of MTR

  • 1. MARKETING STRATEGY OF MTR ( M a r ke t i n g M i x ) G r o u p 8
  • 2. Add a Footer 2 ABOUT THE COMPANY
  • 3. HISTORY • Began in 1924 with the establishment of the Restaurant by the Maiya family i.e Ganappaya Maiya’s Brahmin Coffee House. • In 1975, Maiyas diversified into the business of convenience foods and instant mixes. • To fuel further growth, MTR became part of Norwegian Company M/s Orkla in 2007. • It has protected and handed down, its Culinary secrets over the generations With a VISION of- “Your friend in everyday life”. • MTR Foods has consolidated its market leadership in the south and is all set for a strong pan India presence • It has established strong market position in India, Russia and parts of Central and Eastern Europe. • MTR’S values include -Brave -Trustworthy -Inspiring 3
  • 4. Milestones: 1. Started Mavalli Tiffin Room – 1950. 2. MTR Pioneers Packaged Foods – 1976. 3. Showed up on Bangalore’s best known chains of stores – Nilgiris’s and Vijaya Bakery’s – 1983. 4. Expanded outside Karnataka – 1984. 5. MTR foods turns into a fully powered enterprises – 1997. 6. Got ISO 9002 & HACCP Certification – 2002. 7. Entry into Japan, China & HongKong – 2006. 8. Became a part of Orkla – 2007. Reference: https://www.mtrfoods.com 4
  • 6. INDIAN FOOD PROCESSING INDUSTRY • It offers Packaged Foods and Beverages • It accounts for 32% of country’s total food market. • It ranked 5th in terms of production, consumption, export & expected growth among other Indian industries. • Demand of Ready-To-Eat items have increased recently due to :  Increasing Income Level  Hectic lifestyle (Convenience Factor)  Rapid Urbanization  Increase of women's employment Add a Footer 6
  • 7. COMPETITORS • The Rs 3,000-crore breakfast market is going through a change with the urban consumers switching from western cereals to traditional Indian or healthier alternatives. • “Ecommerce platforms like Amazon, Flipkart and Paytm, smartphone have helped in penetration and awareness about nutrition have helped,” Brands • ITC (Master Chefs of ITC Hotels) • MTR Foods • GITS • Kohinoor Foods • Tasty Bite Eatables • Tops • Bambino Reference: economictimes.indiatimes.com 7 ITC & MTR, 45% GITS, Kohinoor & Tasty Bite, 39% Others, 16% PACKAGED FOOD (READY TO EAT) MARKET SHARE
  • 8. 88 SWOT ANALYSIS STRENGTH • Healthy, Portable & Time Saving. • Use packaging technology where no preservatives added. • Foods retains crispiness, freshness and homemade aroma, taste, and flavor. • Certified with HACCP & ISO 9002 • Easy Availability • Affordable Rates • MTR’s USP is quality of its product OPPORTUNITY • 32% of food market captured by processed food • Opportunity to substitute other breakfast items. • E-commerce Platform • Govt. Initiatives WEAKNESS • Need of Hot Water • Only Vegetarian Product THREAT • Other Competitors • Customer Perception • Health Concerns
  • 10.  MTR currently has 140+ products on offer under the following categories: -Meals -Mixes -Ready To Eat -Confectioneries -Beverages -Spices And Masalas Add a Footer 10
  • 11. Manufacturing Process Freeze Drying Process: Vacuum freeze-drying technology • Fresh/Cooked food are flash frozen and placed in vacuum chamber. • 90% of food’s moisture is drawn off by evaporating at temperature as low as -50 degree Celsius. • Freeze – dried food is sealed in moisture-and-oxygen proof packaging to ensure freshness. • Addition of hot water so that food gains it’s fresh flavour, aroma, texture and appearance. Reference: https://www.mtrfoods.com/ https://www.hgmachines.com/snacks-processing- line/savoury-snacks-line/ready-to-eat-food-processing-line PRODUCT PORTFOLIO • It offers a range of products as mentioned below: • Poha • Vegetable Upma • Seviyan Upma • Khatta Meetha Poha • Masala Oats • Kesari Halwa • Available in 3 different types of packaging: • One Time Use Pouch • Family Pack • Cup For ‘on the move’ Customers 3 M I N U T E B R E A K F A S T ! 11
  • 12. PACKAGING • For the single-use solution, they have developed a LUP pack pouch. • In urban centres, the consumer needs their breakfast on-the-go for the paucity of time. For this, they have developed a Plastic cup with roto-lock cap made of polypropylene (PP). The cup is equipped with tamper evident induction seal with a pull tab for easy opening. The foldable spoon gives an added convenience on- the-go. (It Cost Rs. 11 per cup) • For the family or a group of people, they have developed a box which is similar to that of a Western cereal box. • In totality, the portfolio mix consists of rigid, semi-rigid and flexible packaging formats, along with wider space for product branding. REFERENCE: https://www.printweek.in/Features/bas-teen-minutes- mtr-serving-breakfast-29027 12
  • 13. • In FY17, the ready-to-cook breakfast business brought in 10% of MTR’s revenue. • And it expected to increase to 25% in next five years due to 3 minute breakfast line. • CAGR – 14% • 20% of revenue from exports. • Sales in Southern states contribute 60% of its total revenues. Follows the following pricing strategies: • Pocket-friendly and affordable rates. • Web Portal to reduce its distribution costs. • Market penetration policy • Launched in April 2017, the platform helped generate more than ₹25 crore in the first year of its launch. REFRENCE: https://www.mtrfoods.com/ PRICE Prices of 3 Minute Breakfast • Pouch 60gm - Rs.20.00 -serves 1 • Cup 80gm - Rs.50.00 - serves 1 • Pouch 230gm - Rs. 160.00 – serves 3 to 4 13
  • 14. DISTRIBUTION • 900+ Distributors • 220,000+ Retail Outlets • 35,000+ Retail Outlets in North. • In Delhi-NCR region there are 14000+ Retail Outlets. • Adopted Route to Market Strategy • Metros and Tier 1 cities. • Availability at their own stores and in super markets, hyper markets, discount stores, convenience stores and grocery stores. 14
  • 15. 15 DISTRIBUTION CHANNEL  Traditional Trade (Indirect) • Distribution Margin 8% • Retailer Margin 12%  Modern Trade (Direct) • Profit Margin 20%
  • 16. 16 PROMOTION 16 “We are friends in everyday life” • Research shows that most Indians preferred to have Indian food for breakfast. But because of time constraint, they choose cornflakes, oats or muesli.
  • 17. ONLINE PROMOTION • Target Customers for promotion To cater urban population, the young with busy lifestyles as well as seniors living alone. Aim to provide convenience to have the breakfast in minutes. • Emerging Digital Space- Millennial A community called Dishcovery where people share their recipes. It’s an engagement platform of MTR. Also, they have social handles as they are present on Facebook, Twitter, and on YouTube which help them engage and communicate. BUDGET • Rs. 40 crores for the promotion, 30% going into digital initiatives. MAJOR CHALLENGES • Low Penetration • Perceived Taste Add a Footer 17
  • 18. 18 VISIBILITY STRATEGY • Traditional & Modern Trade PoP displays - visibility of key messages and the process of making the product. Installed imagery-driven PoP solutions like FSUs and Endcaps. • Kirana Outlets Due to space constraint, they developed special counter tops which could be placed at the billing counter. • Sampling • Celebrity promotion Jiggs Kalra, celebrity chefs 18