Professional Documents
Culture Documents
CONDIMENTS
Group 9
• Ankur Jain
• Khushboo Hanjura
• Darpan Shah
• Darshan
• Vanashree
A B O U T - E A S T E R N C O N D I M E N T S P R I VA T E
LIMITED
● Established by M.E. Meeran in 1968 as Eastern Trading Company
● In 1983, Eastern set up its first full-fledged spice factory with 35 employees in Adimali,
Idukki
● In the same year, Eastern set up a Coffee Powder manufacturing facility as well
● By 1987 with its blended spice products, Eastern covered 1/3rd of Kerala’s market
● Eastern Condiments Private Limited was incorporated in 1989
● 1992-3, Eastern set up its first lab testing facility with International standards, the only such
lab in Asia
● In 1995, opened a new factory in Theni, Tamil Nadu
● In 2008, Eastern had a workforce 1100 - employed in 4 factories at 12 locations (India &
Abroad)
●
EASTERN’S PERFORMANCE IN KERALA
● Yes, it had 30% of Malayali population, which was highest nationally after kerala.
● Distribution to Karnataka was relatively easy due to proximity to Kerala.
● MTR foods was only major competitor, restricted to vegetarian spices only.
● Bangalore, the capital city was the fastest growing Metropolis with population 6.5 million.
4. HOW IS THE PERFORMANCE IN KARNATAKA ?
● Sales has increased from INR 13 million to INR 116 million(EXHIBIT 11)
● Cash & Stock pilferage caused losses.
● Failure of Permanent journey system.
● Lack of upfront cash payment increased working capital.
● Less “ownership minded” Sales personnel.
● High sales staff attrition rate & burnout.
● Shift from “Behaviour Control” to “Outcome based control” due to minimal management
involvement and training.
● Distribution planning suffered causing stockouts.
● Ever-Present Manager Inconsistency
5. WHAT WERE THE EXPERIENCE IN CITIES LIKE
MUMBAI
Pros
Cons
Pros
● Cost reduction
● Better awareness of Locality
● Better time economy
● Service Quality improvement can be achieved
● Reduction in direct salesperson
● Mumbai Model - Complete outsourcing of distribution system
Cons
Pros
Cons
● Kerala Model
with the
suggested
consistency (As
they already
have their own
Vans)
ECONOMIC COMPARISONS
KERALA KARNATAKA