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Strategic Analysis
The Spice Kitchen
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Contents
THE SPICE KITCHEN......................................................................................................................................2
INTRODUCTION.......................................................................................................................................2
PESTEL ANALYSIS.....................................................................................................................................2
Political................................................................................................................................................2
Economical..........................................................................................................................................2
Social...................................................................................................................................................3
Legal....................................................................................................................................................3
Environmental.....................................................................................................................................3
SWOT ANALYSIS.......................................................................................................................................3
Strength...............................................................................................................................................3
Weakness............................................................................................................................................4
Opportunities......................................................................................................................................4
Threat..................................................................................................................................................4
Market Mix Analysis................................................................................................................................5
STP Strategy.............................................................................................................................................7
Recommendation....................................................................................................................................8
CONCLUSION...........................................................................................................................................8
Appendix.....................................................................................................................................................9
SWOT Analysis.........................................................................................................................................9
PEST Analysis.........................................................................................................................................10
Bibliography...............................................................................................................................................11
THE SPICE KITCHEN
INTRODUCTION
Spice kitchen is a Family-owned spice and tea business. It is owned by a son and his mother, named
Sanjay & Shashi Aggarwal. The main objective of Sanjay and Shashi is to make their Indian legacy noble.
The bonus in the process is that many authentic foods can be inspired. Spice Kitchen is devoted to their
cultural heritage. In the Indian culture family and food play an important role, to bring people together
and strengthen the family ties. Shashi Aggarwal’s knowledge about the spices and their mixture is the
core of everything. Shashi is originally from Kenya but she grew up in India and has spent more than
thirty years in the UK. She has a culinary experience of more than 50 years and is a seasoning revelation.
Providing each and every customer with the wow factor is all about getting the information right. They
also include handwritten notes, as well as free gifts that surprise customers and delight them all time.

PESTEL ANALYSIS
According to (professionalacademy) “A PESTEL analysis or more recently named PESTELE is a framework
or tool used by marketers to analyse and monitor the macro-environmental (external marketing
environment) factors that have an impact on an organisation. The result of which is used to identify
threats and weaknesses which are used in a SWOT analysis.”

The PESTEL analysis of the spice kitchen is done according to the (Perera, 2017)

Political
The major political factors affecting the spice kitchen are the policy and new rule of governments. The
employee laws, safety and health regulations were other key political considerations other than local or
foreign politics. There are strict restrictions on the spices imported in to European countries. The use of
chemicals or pesticides in crop harvest is prohibited. The products Spices Kitchen is importing as raw
materials from other countries are unauthorized to import due to the presence of maximum amounts of
aflatoxin in the raw materials. This problem has a huge impact on the business. The business must
though exercise proper control over the supply chain and develop quality and food security from the
beginning. In the company's external climate, political stability also plays an important role in the region.

Economical
The most important economic factors are national economic, foreign exchange risk, country's economic
growth or GDP, labour-based, crude oil prices and fluctuation of commodity prices. Economic growth
affects the people's purchasing power, which in turn impacts the decline in product prices.

The increase in fuel prices can also plays an important role in Spices Kitchen's business as the company
dispenses its own goods to supermarkets and shops. There is a risk of customers switching to other
brands from the spice kitchen as the price of fuel will increase. The price changes in raw materials have
major effects on the business. If the price of raw materials is high, the price mechanically affects the
final price of the product. Increase in salaries by employees during COVID is also a part which affects the
economy of spices kitchen.

Social
This is most hard as people's attitudes cannot be voiced easily matched to the other factors and the
customers' purchase pattern changes even from place to area according to their culture and values and
changes to the way people live and populate the business. The other key social factor is health
consciousness, with the trend now changing across many of the markets for days, as customers are
inclined to produce organic and pesticide residues free and refreshed goods with frozen foods. Spices
Kitchen has a positive impact as it has become the organic spice processing and production and
everything is blended together.

Legal
Spices Kitchen follows all rules and legal laws in UK. In the past they have all been dynamic in a fruitful
Family retail enterprise and together have turned what began as a small retirement project into a
successful online spice and tea enterprise with a growing list of UK stockholders. In the last four years
we have been able to develop rapidly to become a well-established brand for the UK customer and chefs
by leveraging their specific strengths and by clearly identifying positions of the different family
members. The company went far afar our prospects, earning great food prizes and being recognized in
the national press.

Environmental
Environment plays an important part and Spices Kitchen has ensured that spices which are imported are
not affected by the environment of UK. Also, business should challenge what they have to sell in winter
or summers according to the environment and they do their job perfectly in this matter as they have
different drinks according to environment and recipes.

SWOT ANALYSIS
“SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a
technique for assessing these four aspects of your business. You can use SWOT Analysis to make the
most of what you've got, to your organization's best advantage. And you can reduce the chances of
failure, by understanding what you're lacking, and eliminating hazards that would otherwise catch you
unawares.” (Mindtools)

Spice Kitchen’s SWOT is identified by (Kolbina, 2015)

Strength
Following are the Strengths of the company;
  A lot of stockholders is a flourishing online spice and tea enterprise.
 Consumers and chefs across the United Kingdom were fastly expanded into an established
brand i.e. spices kitchen.
 They won “Great Taste Awards” for their food items and have grown gratitude in national media
such as The Guardian and the Independent.
 Getting features in by Hairy Bikers on BBC1
 Having a wide range of target audience.
 Following to all ecological, economical, and sustainable regulations and environmental
legislation, as well as to waste management and reuse.

 Good and high quality products

 Good hygienic conditions
 Help the two social welfares which help them to target a large audience as well.

Weakness
 Higher time consumption due to less labour employed
 Tough competition from other developed food spices like Shaan foods and MDH
 Just operating as online business, no retail or shop so customers have to wait for the item to be
delivered

Opportunities
 Products range can be increased according to the current trend.
 They can provide bulk discount to the wholesalers to increase the sale.
 They can improve sale by focusing more on marketing and increase brand value.
 They can develop alliance with International Companies to export products.
 Because of pandemic people are preferring online shopping so it an opportunity for them to
grow as well as more sales as people are staying at home and enjoying cooking, so more order
of spices for food

Threat
 They have a high competition with fast foods as they are more practical and cheaper.
 Only locality and are just an e-commerce store
 Cost more for marketing to increase brand value.
 There is a huge possibility of new entrance into the market which have a huge impact.
 Giving discount may reduce profitability for short term period
 Competitors have more product range as Shaan Food masala has introduces instant things to be
made as well as MDH also adapted that policy so the taste of spices is same and you can get the
prepared dish in just 5-10 minutes.
 The changes in government policy and export laws for future development.
 Spice Kitchen should also introduce something new like a shop with also the testing labs so that
people can also have the taste of their spices as well.
  As marketing they can introduce their packaging as a good one like in order to show their
culture and heritage of India they should focus on making a fancy spice tin according to heritage
of India it will attract a lot of consumer.

Market Mix Analysis

According to (TWIN, 2021); “The four Ps of marketing are the key factors that are involved in the
marketing of a good or service. They are the product, price, place, and promotion of a good or service.
Often referred to as the marketing mix, the four Ps are constrained by internal and external factors in
the overall business environment, and they interact significantly with one another.”

“The 4 Ps are used by companies to identify some key factors for their business, including what
consumers want from them, how their product or service meets or fails to meet those needs, how their
product or service is perceived in the world, how they stand out from their competitors, and how they
interact with their customers.” (TWIN, 2021)

The marketing mix of spice kitchen is determined by consulting (Jain, 2013)

Spice kitchen products are high quality products made from best spices from all over the world. As they
have won the best taste award, so it assures that taste quality of their spices of excellent quality. Not
only this all the spices are blended at home and in hygienic condition. They have never compromised on
quality making them grow fast.

Spices Kitchen sells its products at varying prices and quantities while considering the marketing mix of
the business itself. Spices Kitchen pricing strategy primarily depends on a Stock Keeping Unit (SKUs). The
price is roughly $75 for 20 grams of spice packaging, compared to $7 for 100 grams.

If we are talking about product promotion, particularly in terms of fierce advertising and marketing, the
product is a product that is invaluable to customers, and the business therefore does not need to
advertise a great deal. As the commodity is part of the food industry, women are the primary target
demographic. The company's marketing is basically customer-centric, giving it a lead on its rivals, for
example, by placing cooking recipes on websites. The organization is now focused on raising awareness
among customers of the value of packaged spices with evolving cultural patterns in the world, growing
popularity of the idea of nuclear families in the country and increased literacy rates. They are committed
not only to quality but to demonstrate to people that the quality is healthy and reliable. they are
committed to growing demand for their product. This could discourage customers from buying
unbranded or other branded spices.

Consumer delivery is the foundation of a product's success, since the product distribution system will be
simpler for consumers to reach and therefore the company's performance can be improved. Spices
Kitchen takes great care to deal with the matter of prompt delivery and stock selection. The company is
still an exporter and so the Supply Chain staff must be trained during the year. It is important to note.

In terms of the product's placement, Spices Kitchen strives to provide customers with a way to make a
perfect meal readily available in the e-stores in no time by offering home cooked recipes and packed
spices that are safe and safe and value-consuming.

The selling world where the product performs is largely competitive. In comparison to those firms,
branded unpacked spices are available which further boost competition. There are different
corporations working in the market. Interestingly, loose spices carry about 60% of the market share.
With a large distribution network in the region, both rural and urban areas of the country are in high
demand.

However, in urban parts of the country there is primarily economic inequality in the country's use of
packaged spices. There is also a perception in rural areas that people use handmade spices so they find
their food has the right taste so they have both privileges.

Their main competitors of spices Kitchen are Shan Foods, National Foods, Verstegen Spices & Sauces,
Essex United Kingdom and others. The exclusive thing about their store is all spices are imported of best
quality from all over the world and blended. As it is a mother and son store so it plays an important role
is marketing and securing a safe place in a huge market.

There are over 50 spices present in powdered form as well some of them worth mentioning are; Red
chilli, Cloves, Garlic powder, Black pepper, Curry leaves organic, Oregano, Gingerbread, and Turmeric.

The target the primary target demographic of Spices Kitchen is for women between 18 and 45 years of
age. This is because women are primarily interested in food and cooking in this part of the world. Spices

Kitchen therefore designs items to suit your desires and specifications. But lately with the idea of
nuclear family increasingly prevalent, the organization serves the demands of men and guarantees the
convenience of its product and its needs.

There are various customer tastes throughout the world. While spicy food is preferred in the southern
region, in the high parts it is preferred to be mildly mild. In addition to taste tastes, cultural
considerations often play an important role in the success or lack of multiple goods that are part of the
industry itself. Homemade spices and preparations are also preferred to packaged spices in rural areas
in the countryside. In the countryside people assume that the seasoning they make alone gives their
food the right scent, and not only is the economic aspect considered. Food is also very important since it
is the first in the hierarchy of the Maslow. People therefore do not want to change their tastes and are
faithful to any brand or unpackaged spices they use for years. But customers have started transitioning
to packaged spices such as Spices Ketch with better literacy rates in the country in recent times and with
a growing history of nuclear families in the country.

STP Strategy
“The STP model is a central concept in marketing that is absolute key to serving a market successfully.
STP refers to three activities: segmentation, targeting, and positioning. Marketers segment markets and
identify attractive segments to target, before developing suitable positioning strategies and allocating
resources to prioritise marketing activities. The use of the STP model has become more and more
popular because of the increasing prevalence of mature markets, greater diversity in customer needs,
and the ability to reach niche segments.” (Claessens, 2019)

The STP analysis is done through (Dibb, 2002)

The segmentation of Kitchen Spices is all the users which use spices and more importantly chefs of
restaurants and women who have high knowledge of food and spices. All restaurants are also a target as
spices used in restaurant will generate more profit in short time due to high demand. This also includes
people who are highly conscious of quality and taste. Their spices are handmade and of great taste we
target those people and restaurants aware of quality and conscious of health and taste.

Spices Kitchen Target market are women as food is made by women aged 18 to 40. Their next target are
people who love cooking new things and enjoy food blogs as spices kitchen has a separate blog for
recipes they can make with their spices and lastly the restaurants chefs which will buy spices and
increase our market area as well as economy. By apply the DAMP model, we can see that we have
targeted all distinct groups i.e. women, food lovers, chefs. Our buyers are also nearby and readily
available for buyers online. Each segment is easily identifiable as well and they ensure us profit as
women and chefs buy on daily basis whereas food lovers will also buy occasionally but they sure offer us
profits.

When we see the positioning of spice kitchen it sure has secured a good position in the market because
of their high quality products. And a good taste award, and being successful at positioning their spices as
fully natural. The team consisting of the mother son duo is the greatest part of this spice kitchen. Also,
their donations and charity makes people safer in buying their products. Positioning strategy of Spice
kitchen is focused on the Indian culture and their product quality along with their packaging.
Recommendation
I would recommend spice kitchen that they should have a physical store as well because it will ensure
the attendance of their brand and hence this will also target more people. Secondly they should include
more spices and product lines to stay in market as new products and innovation is what a consumer like
e.g. instant food. Lastly they should think of their packaging as well because a change in package or a
highly good package especially traditional attracts the people in UK and could prove as a competitive
edge.

CONCLUSION
Each business has its own strengths and weaknesses, so spice kitchen strengths are their high quality
spices collection from all over the world, but weakness is that it doesn’t exist as a physical store where
people can visit and built the connection or picture of the brand. The business should add an innovative
approach to their business. They should expand their target market. There is a lack of marketing for the
overall business, hence they should strengthen their marketing strategies and work on social media
advertising, that is in trend now days.
Appendix
SWOT Analysis - (Mindtools)
PEST Analysis – (Creately, 2021)
Bibliography
Dibb, S. a. (2002). Market segmentation: diagnosing and treating the barriers.

Jain. (2013). An analysis of marketing mix: 7Ps or more. Asian Journal of Multidisciplinary Studies.

Kolbina. (2015). SWOT analysis as a strategic planning tool for companies in the food industry.

Perera. (2017). The PESTLE analysis.