MARKETING

MANAGEMENT
ASSIGNMENT

Made by- Pavi Gupta(2925)

Isha Jain(2921)
Chayan Kurra(2930)
Megh Anand(2945)
Indian Spice
Market
&
It’s Exports
Indian Spice Market
● Sophistication and subtle use of some herbs and spices characterize Indian
food and cuisine.
● The demand of Indian spices is high in the global market due to their rich
aroma,texture and taste.
● India has the largest domestic market for spices in the world. The major
importers of Indian spices are the US,the UAE and Malaysia.
● The growth of Indian spice market in India has been triggered by the
establishment of quality evaluation laboratories,infrastructure facilities
and the shifting consumer interest from artificial to natural flavours.
Exports of Indian Spice Market
OWNER OF MDH
● Dharampal Gulati ( 1923-2020) also
known as Mahashay Dharampal
Gulati,was an Indian businessman, and
founder and CEO of MDH ( Mahasian Di
Hatti),an Indian spice company.
● He was referred to as ‘spice-king’ in
reference to his pioneering of
ready-to-use ground spices.
● He was awarded the Padma Bhushan,
India’s third highest civilian award,in
2019.
 History of MDH

● 1919- Dharampal’s father Chuni Lal sold spices from a small shop Mahashian Di Hat in Pakistan.
● 1933- Dharampal left the school while he was in fifth standard.
● 1937- Own business to parental business-MDH- “the shop of the magnanimous”.
● 1947-Came to India, invested Rs. 650, started horse drawn carriage business- was not moving fast.
● 1947-sold the carriage and bought a small shop in Karol Bagh,restarted his family business of what he does
best – selling spices.
● 1953-As the business started to get pace, Dharampal rented another shop in Chandni Chowk.
● 1959-purchased a plot in Kirti Nagar to start his own factory, and this led to the birth of Mahashian Di
Hatti Limited (MDH).
 MARKETING MIX
AND HOW MDH USED IT??
PRODUCT-THE FIRST ‘P’
Product - The First ‘P’

● Product Life Cycle- It refers to the length of time a

product is introduced to consumers into the market until it's
removed from the shelves.
For MDH, this seems as an advantage as spices are considered an
integral part of daily life and cannot be removed from life.
Product-The First
‘P’ Blend
Ground spices
Other spices
● Product Mix - ❏ Black pepper product
❏ Amchoor powder
❏ Deggi Mirchi
It consists of set ❏ Dhania ❏ Kesar
❏ Biryani Masala
❏ Butter Chicken
of products Powder ❏ Dant ❏ Channa Masala
❏ Haldi Powder Manjan ❏ Chicken Masala
offered by the a ❏ Jeera ❏ Hawan ❏ Chunky chat
powder Samagri
firm. ❏ Kasoori
masala
❏ Curry Powder
methi
❏ Chutney podina
❏ Lalmirch
masala
❏ White
❏ Dahivada Raita
pepper
❏ Dal makhni Masala
❏ Kashmiri
❏ Fish Masala
mirch
❏ Meat Masala
powder
❏ Garam Masala
❏ Jaljeera
Product- The First ‘P’

● Differentiation- It is what makes the product stand

out from its competitors to the target audience.

In case of MDH, it was the first company to sell

the spices packed in the boxes. Earlier, it was prefered
in Indian household to grind spices themselves.
Product- The First ‘P’

● Segmentation- It is the process of dividing a target market

into smaller, more defined categories. It segments customers and
audiences into groups that share similar characteristics such as
demographics, interests, needs, or location.
In case of MDH,
❏ Spices for non-vegetarians and vegetarians
❏ Spices for different taste which varies according to regions
❏ Mild spices for the foreigners and strong ones for Asian countries
Product- The First ‘P’

● Positioning- It is the process of deciding and communicating

how you want your market to think and feel about your product.
MDH proposed it’s product as:
● Traditional
● Hygiene
● Flavourful
● Tasty
PRICE-THE SECOND ‘P’
Price- The Second ‘P’
❏ Black pepper- Rs.66
❏ Deggi Mirch-Rs.60
❏ Dhania Powder-Rs.110
❏ Haldi Powder-Rs.28
❏ Jeera powder-Rs.66
❏ White Pepper-Rs.250
❏ Kasmiri Mirch-Rs.199
❏ Red Chilli powder-Rs.200
❏ Biryani Masala-Rs.80
❏ Shahi Paneer Masala-Rs.82
❏ Channa Masala-Rs.65
❏ Chicken Masala-Rs.70
❏ Chunky chat masala-Rs.65
❏ Rajma Masala-Rs.65
❏ Chana masala-Rs.65
❏ Makhni daal Masala-Rs.65
❏ Sambhar Masala-Rs.64
❏ Pav Bhaji Masala-Rs.65
❏ Meat Masala-Rs. 73
❏ Garam Masala-Rs.78
❏ Jaljeera-Rs.53
❏ Amchoor Powder-Rs.80
PLACE-THE THIRD ‘P’
Place-The Third ‘P’
● MDH moved its operations to Karol Bagh, Delhi after starting well at Sialkot.

● Apart from the headquarters in Karol Bagh, the brand has many manufacturing
plants in Gurgaon, Sojat, Nagpur and even Sharjah.15 factories supplying to a
network of over 1000 stockists and 8 lakh retail dealers in India.

● MDH earns a good amount of revenue from its exports to Japan, UAE, Saudi
Arabia, South-East Asia, Canada, U.K, Europe and the U.S. As of January 2018, it
is reported to have around 1000 wholesalers and 400,000 retailers.
Place-The Third ‘P’

The indirect channel followed by MDH is:

Super Stockists
Distributors
Retail Outlets
Consumers
Promotion- The Last ‘P’
Promotion- The Last ‘P’

● Packaging- It is even considered as the fifth ‘P’ in the

marketing mix. It tells alot about the product and convinces the
consumer to buy it.
In case of MDH, it was first ever company to sell spices in closed
boxes or packages which was itself very attractive for
customers.It even has some recipes printed on the boxes related
to the spice which really convinces the consumer about its use.
Promotion- The Last ‘P’

● Advertising-Advertising is a marketing communication that

employs an openly sponsored, non-personal message to promote or
sell a product, service or idea.
In case of MDH, the brand followed the policy of USP(Unique
Selling Proposition). IN television advertisements, newspaper ads
etc. MAHASHAY DHARAMPAL GULATI made appearances and
himself became the face of brand.
Promotion- The Last ‘P’

● Public Relations-It is the professional maintenance of a

favourable public image by a company or other organization or a
famous person.
For this MDH, highly participated in social causes. It opened up
various schools and hospitals for good brand imagery. This helped
the brand to grow in its earlier days and even contributed to its
social responsibilities.
● Everest Food Products Pvt Ltd (Everest Spices) is an Indian
manufacturer, distributor and exporter of ground spices and spice
mixtures under the brand name Everest.

● The brand was stocked by 4 Lakh outlets in more than 1,000 towns across
India. More than 370 crore packs of Everest product were sold each year.

● Everest Spices, being one of the leading players, aggressively competes with
MDH, which has 12% market share
● Quality is a byword for Catch Spices which is ensured through rigorous quality
control procedures, right from procurement of raw materials to manufacturing
and packaging of the finished products.

● Catch Spices employs the Low Temperature Grinding (LTG) process for grinding
the spices, which is an ingenious manufacturing technique to retain the flavour
and aroma of spices in their original state.
● MTR Foods is a food products company based in Bengaluru, India. The company
manufactures a range of packaged foods including breakfast mixes, ready to eat
meals, masalas and spices, snacks and beverages.

● The company is currently an approximately Rs 700 crore company which is

growing at a CAGR of 18%. The company has been listed as a Fortune Next 500
(India’s Top Midsize) company for 2016.
SWOT Analysis
Strengths and weaknesses
● MDH has a huge network of over 1000
wholesalers and over 400,000 retail
dealers in India.
● Being an unlisted company in the
stock market, company has
limited options to generate
equity for expansion plans.

● The company has been involved in several

● Recall of its products due to
charitable and social activities through its
sister organization which maintains trust alleged contamination.
amongst its loyal customer base.
● Over reliance on an exclusive
brand ambassador which is the
● MDH has automated machines, with a owner of the company.
capacity of producing 30 tons of packaged
spices in a day.
Opportunities and Threats
● Venture into ready to eat food segment
● Company may remain complacent about
present a huge opportunity for MDH.
its dominating market share, and might
lose out to its competitors.

● It has also ventured into manufacturing and

● Intervention of Government viz-a-viz
selling incense sticks, Hing, toothpowder
import & export of spices is causing
and soya, which increases its presence and
upheavals in the market hence affecting
encourages more shelf space and cross
selling for its products.
both demand and price.

● Constant increase in costs in terms of

● Listing the company under a stock exchange
will open up huge avenues of capital for the
company to support its expansion plans and
allows it to venture into new businesses.
raw material inputs, services, power and
fuel. The huge surge in costs continues
to be a point of concern for the
Company.
Growth
Growth Prospects

● From hand-ground spices, the company got upgraded to

automated machines
● They innovated by selling the spices into boxes
● Over 2000 employees employed
● NET PROFIT

2015-16 172 CR

2016-17 213CR
Growth Prospects

● REVENUE

2015-16 804CR

2016-17 924CR
FUTURE PROSPECTS
FUTURE PROSPECTS

● MDH is planning to explore market where it lacks like wheat flour

etc.
● After death of the brand ambassador and owner Mahashay
Dharampal Gulati the brand is looking for another face which can
create a persona like him.
● Even the brand constantly works on developing new blend spices
for adhering to different tastes all around the world
OBSERVATION
OBSERVATION

The brand currently uses plastic packets inside the cardboard boxes
for packaging. They can replace those plastic packs with paper ones
which would be recyclable and good for the environment.
Company can even introduce spices and herbs which acquire to the
taste of western dishes such as oregano, chilli flakes etc.
The company can even explore the market of other eatables like
sauces,dips, ready to eat food etc.
The brand has a lot of potential due to its already well established
name.