DHR MASALAS

Research Design

For forecasting sales in Uttar Pradesh, we can do research as follows-

 Total population of UP (TP) =20 Crores

 Assuming 4 persons per household
1. No. of households= 20/4= 5 Cr
 Conducting surveys with sample sizes and applying the statistical techniques we can
estimate household preferences and segment them as follows-
1. PURE VEG HOUSEHOLDS= 20%(TP) =1 CR
 Households that will Buy Veg masala even after the launch of Non-veg
Masala (PV-B) = 0.6 Cr
 Households that will Not Buy Veg masala after the launch of Non-veg
Masala (PV-NB) = 0.4 Cr
2. Vegetarians buying non-veg masala(V-BNV) = 30%(TP) = 1.5 Cr
3. Non veg households= 50%(TP) = 2.5 CR
 Assuming 50% of Non-veg households buy masala(NV-B)= 1.25Cr

 Assuming a 30% market share of DHR:

1. DHR market for PURE VEG HOUSEHOLDS = 30% of 1 Cr= 0.3 Cr
 DHR market for PV-B= 30% of 0.6 Cr= 0.18 Cr
 DHR market for PV-NB= 0.12 Cr
2. DHR market for Vegetarians buying non-veg masala(V-BNV) = 30% of 1.5Cr = 0.45 Cr
3. DHR market for NV-B will remain same = 1.25 Cr

After DHR launches Non-Veg Masala, it will lose business from PV-NB

Loss of households for DHR if any Non-Veg variant is launched= 30% of PV-NB= 0.12CR

After DHR launches Non-Veg Masala, it will gain business from PV-B and Non-veg households.

Gain of households for DHR if any Non-Veg variant is launched = 30% of 1.5 CR+ 30% of 1.25CR =
0.825 CR

 Considering the average MRP of 1 packet of DHR non veg masalas be Rs. 75 and that of 1
packet veg masalas be Rs. 72 (Considering each household purchases 2 packet masala each
month on an avg.)
 Loss in annual sales after launching the non veg variant= 0.12 CR*72*2*12
= 207.28 CR
 Gain in annual sales after Launching the non veg variant= 0.825 CR*75*2*12
= 1485 CR
 Incremental sales= 1277.72 CR
Therefore, Non-Veg variant can be launched as it is increasing its revenue. The sales can be found
out by multiplying the number of households, people per household and the cost of 1 packet DHR
Non veg masalas.

The sales of DHR masalas will be affected taking into account the demographics and the mindset and
buying behaviour of people in Uttar Pradesh owing to factors like rigid beliefs, tradition, generation
gap, mindset of people migrating and settling in the State, working population who don’t cook that
often or find non veg cooking a hassle and many more.

But the decline in sales can be compensated with the loyal customer base retention, vast potential
non-vegetarian market and proper marketing strategies and advertisements to create awareness
that Non-Veg Masala only has vegetarian ingredients and the company is still producing standard
quality vegetarian variants. This will help in retaining some customers from the PV-NB segment.

Submitted By:

Section C Group 2 (PGDM)

Members:
Anagha Sunil Deshpande (200201011)
Aditi Tripathy (200103012)
Shyam Maheshwari (200101141)
Sagar Manchanda (200101131)
Chinmay Vinay Sonambekar (200103052)
Himanshu Sharma (200103201)