CHAPTER 2

MARKETING STUDY

The marketing study covers the general business condition,

competitive condition, target market, demand and supply, product

pricing strategy and packaging. This area talks about the

structured questionnaire floated to the respondents and the

result determines the demand and supply and to know whether our

product will penetrate the target market.

Marketing Feasibility

The focus of this study is to produce mayonnaise. The

product is intended to be tested by sensory evaluation using

affective test or consumer rating. The panelists of the sensory

evaluation were the teaching staffs and students of Chemical and

Food Engineering Department. A total of 100 untrained panelists

evaluated mayonnaise. Samples were given to them as well as the

questionnaire to be answered to rate the products.

The data gathered from the distribution were tallied and

being analyzed in order to determine the target feasibility of

the product. This also covered the factors affecting the study

such as the products’ features, packaging, promotion and the

channel distribution from producers to consumers and retailers.

The price of the product is determined through cost-analysis. The

variable, fixed cost and percent markup were considered for the

pricing of the proposed products.

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 MARKET PROJECTION

The global mayonnaise market captured significant

revenue in 2016 and is expected to expand around 11% over

forecast period. Mayonnaise is predicted to experience high

demand from consumers with higher health consciousness and

as well as aging population. Asia pacific accounted the

largest revenue share in mayonnaise market globally and is

estimated to be the dominant region in mayonnaise market

during the forecast period i.e., 2016-2023. The region is

the largest producer and exporter of mayonnaise to other

geographical zones. The mayonnaise market is highly

fragmented with large number of small and local

manufacturers in the product segment. The key vendors are

anticipated to invest on research and development due to

huge popularity and rise in the competition in the future.

Global Mayonnaise Share (%),By Region 2016-2023

8%
25%
17%

50%

North America Asia Pacific Europe ROW

The global mayonnaise market exhibited moderate growth

during 2020-2025 Mayonnaise is a thick and creamy sauce prepared

using egg yolks, oil, vinegar or lemon juice, and various

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seasonings. It is an emulsion which is produced by slowly adding

one ingredient to another, and simultaneously stirring the

mixture. Nowadays, mayonnaise has emerged as a popular condiment,

which is used as a spread for sandwiches or burgers, dips for

snacks, and base for tacos or rolls. Apart from this, it is

utilized as a base for making other sauces, such as tartar sauce

and thousand-island salad dressing. Mayonnaise also offers

several health benefits when consumed in moderation, such as

lowering cholesterol levels, assisting in nutrient absorption,

and improving heart health.

Breakup by Type:

 Unflavored mayonnaise

 Flavored mayonnaise

Currently, unflavored mayonnaise accounts for the majority of

the market share as it is excessively used in the preparation of

dishes like salads, pasta and dips.

Breakup by End Use:

 Institutional

 Retail

Based on the end use, the institutional segment currently

dominates the market. This can be accredited to the emergence of

fast-food joints, which have increased the demand for mayonnaise

across the globe.

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Breakup by Distribution Channel:

 Supermarkets and hypermarkets

 Convenience stores

 Online retailers

 Specialty store

 Others

At present, supermarkets and hypermarkets represent the

largest distribution channel as they provide consumers easier

access to a wide range of product variants including classic,

garlic, diet and green mint mayonnaise.