STRATEGIC BUSINESS PLAN FOR

SAUCE AND SPICES FY 2021/22

NUWANTHA GUNAWARDENA
 Geography
• Off the Southern tip of India
Location • 7° 0' 0" N / 81° 0' 0" E

• Length : 435 km
Dimension • Breadth : 225 km

Area • 65,610 km2

• Administrative : Sri Jayewardenepura-Kotte

Capital • Commercial : Colombo

• Tropical / Monsoon
Climate • Temperature : 27° – 35°C (Colombo)

• Sea : Colombo, Hambantota, Galle, Trincomalee

Ports • Air : BIA & MRIA
 SAUCE CATEGORY GROWTH FOR LAST 4
YEARS
Sum of Net Sale
Net QTY
700,000,000
18,000,000
16,963,807

600,000,000 607,578,616
16,000,000

14,000,000 13,694,304
500,000,000 493,596,708
467,995,859 464,762,863 11,828,171
12,000,000
400,000,000 10,312,100
10,000,000

300,000,000 8,000,000
23% 24%
(SPLY) 6,000,000 (SPLY)
200,000,000
4,000,000
100,000,000
2,000,000

- -
2017/18 2018/19 2019/20 2020/21 2017/18 2018/19 2019/20 2020/21
 SAUCE PRODUCT VARIANT GROWTH FOR LAST 4
YEARS
Sum of Sale Net Value (W/O Tax) for Ret 2017/18 2018/19 2019/20 2020/21 SPLY Growth Contribution
Classification
TOMATO SAUCE 400 Gr. 86,033,212 70,746,263 79,873,628 141,920,403 78% 23.4%

TOMATO SAUCE 200 Gr. 65,214,083 54,885,388 65,724,250 105,853,531 61% 17.4%

TOMATO SAUCE 15 GR PKT 53,503,829 65,186,034 79,944,207 101,088,632 26% 16.6%

TOMATO SAUCE-ECONOMY 4 Ltr. 87,850,553 87,337,814 84,530,450 44,390,387 -47% 7.3%

TOMATO SAUCE-ECONOMY 2 Ltr 33,278,911 36,245,380 39,110,705 28,465,019 -27% 4.7%

CHILLI SAUCE 400 Gr. 1,221,971 28,365,008 2221% 4.7%

TOMATO SAUCE 750 Ml. 24,843,581 16,558,674 18,934,468 22,861,183 21% 3.8%

CHILLIE SAUCE 200 Gr. 12,968,863 11,297,728 14,621,771 19,569,686 34% 3.2%

TOMATO KETCHUP 400 Gr. 10,686,258 11,122,930 12,083,806 19,014,919 57% 3.1%

TOMATO SAUCE-ECONOMY 4 Ltr. GT 15,852,517 2.6%

Total 467,995,859 464,762,863 493,596,708 607,578,616 2,033,934,046 100.0%

 CHUTNEY CATEGORY GROWTH FOR THE LAST 4
YEARS
Net Sale Net Quantity
70,000,000 300,000
65,962,655
63,613,563
61,081,638 256,695 259,054
60,000,000 246,279
250,000

50,000,000 46,402,440 200,000

177,773
40,000,000
150,000
30,000,000 -28%
-24%
100,000 (SPLY)
(SPLY)
20,000,000

10,000,000 50,000

- -
2017/18 2018/19 2019/20 2020/21 2017/18 2018/19 2019/20 2020/21
CHUTNEY PRODUCT VARIANT GROWTH FOR THE LAST
4 YEARS
Sum of Sale Net Value (W/O Tax) for Ret
2017/18 2018/19 2019/20 2020/21 SPLY Growth Contribution
Classification
MANGO CHUTNEY 460 Gr. 31,238,600 27,776,496 27,455,220 20,466,376 -25% 44%
MANGO CHUTNEY 300 Gr. 11,190,327 10,582,793 13,170,504 12,237,842 -7% 26%
AMBERALLA CHUTNEY 460 Gr. 6,854,372 6,402,457 7,125,310 6,392,933 -10% 14%
MANGO CHUTNEY 900 Gr. 6,828,418 6,243,253 6,427,974 2,446,978 -62% 5%
MIXED FRUIT CHUTNEY 450 Gr. 2,839,064 2,211,034 2,300,513 2,112,897 -8% 5%
SPICY MANGO CHUTNEY 460 Gr. 1,592,950 1,707,561 1,845,941 1,357,661 -26% 3%
DATE & LIME CHUTNEY 450 Gr. 2,944,328 2,407,522 1,933,388 1,183,834 -39% 3%
DATE & TAMARINED CHUTNEY 450 Gr. 110,874 446,452 392,838 370,832 -6% 1%

SWEET MANGO CHUTNEY 460 Gr - 11,238 219,258 175,395 149,005 -15% 0%

AMBERALLA CHUTNEY 900 Gr. 15,385 - 12,930 - 5,669 12,818 -326% 0%

MANGO CHUTNEY 900 Gr.(RS.60/=OFF) 749,281 - 267,128 -100% 0%

SPICY MANGO CHUTNEY 900 Gr. 10,482 #DIV/0! 0%

MIXED FRUIT CHUTNEY 900 Gr. 262 -100% 0%

MANGO CHUTNEY 300 Gr.(RS.25 OFF) 2,200,370 - 193,614 - 20,090 -90% 0%
MANGO CHUTNEY 460 Gr.(RS.40/=OFF) 5,029,108 - 403,175 - 99,641 -75% 0%

MANGO CHUTNEY 100 Gr CUP 1,123,879 - 209,005 -119% 0%

Grand Total 63,613,563 65,962,655 61,081,638 46,402,440 -24% 100%

 SAMBOLS/PICKLES/PASTES GROWTH FOR LAST 4
YEARS

Net Sale Quantity

500,000

120,000,000 450,000 444,133

107,824,693 108,809,221 419,022 411,358
101,101,899 400,000
100,000,000
350,000
84,536,212
297,079
80,000,000 300,000

250,000
60,000,000 -22% -28%
200,000
(SPLY) (SPLY)
40,000,000 150,000

100,000
20,000,000
50,000

-
- 2017/18 2018/19 2019/20 2020/21
2017/18 2018/19 2019/20 2020/21
SAMBOLS PRODUCT VARIANT MIX GROWTH FOR LAST
Sum of Sale Net Value (W/O Tax) for
4 YEARS SPLY Contributio
2017/18 2018/19 2019/20 2020/21 Grand Total
Ret Classification Growth n

MUSTARD PASTE 170 Gr 12,249,928 15,593,574 18,531,642 12,422,753 58,797,898 -33% 15%

TOMATO PASTE 250 Gr. 7,565,295 7,003,989 8,222,993 10,667,272 33,459,549 30% 13%

MALDIVE FISH SAMBOL 300 Gr. 12,074,822 12,214,782 11,196,677 9,485,831 44,972,112 -15% 11%

MUSTARD PASTE 360 Gr. 10,934,925 13,140,354 13,921,845 8,650,753 46,647,877 -38% 10%

LIME PICKLE 410 Gr. 8,313,107 6,814,938 9,444,265 5,663,654 30,235,964 -40% 7%

GARLIC PASTE 250 Gr. 4,100,779 3,875,640 3,805,559 5,597,137 17,379,114 47% 7%

TOMATO PASTE 615 Gr. 5,487,520 6,785,442 5,071,125 5,297,031 22,641,119 4% 6%

KATTA SAMBOL 380 Gr. 6,061,973 6,079,948 6,495,411 4,900,811 23,538,142 -25% 6%

GINGER PASTE 225 Gr. 3,975,866 3,577,731 3,376,092 4,303,018 15,232,707 27% 5%

VEGETARIAN CHILLIE PASTE 270 Gr. 3,336,165 3,538,849 2,995,257 3,509,329 13,379,600 17% 4%

Grand Total 101,101,899 107,824,693 108,809,221 84,536,212 402,272,026 -22% 100%

 LCL STRENGTHS

• STRONG BRAND HERITAGE AND EQUITY OF MD ; 90 + YEARS OF MARKET PRESENC

• MARKET LEADERSHIP IN KEY CATEGORIES SUCH AS SAUCE, JAM & CORDIAL

• LOCAL MANUFACTURING BASE LINKED WITH STRONG SUPPLIER BASE
• KEY EXPORTER TO 35 ++ COUNTRIES
• WIDE RANGE OF PRODUCT PORTFOLIO
 OUR OPPORTUNITIES
• Leverage MD Brand Equity More Forcefully To Strengthen Across Categories Such
As Chutney/Sambols/Pickles Etc.

• Good Scope For Increasing Numeric Distribution From Current Outlet Coverage Of
40K To 45K In General Trade; Regain Lost Shares

• Marketing To Proactively Drive Product Innovation And Renovation Based On

Sound Consumer Insights

• Maximize Social Media Investment To Attract Younger Audiences

 EXTERNAL THREATS
• Kist leveraging cargills network ; edinborough dominating horeca . sunquick
replacing cordials

• Proliferation of “store brands” in leading mt chains . organized trade demanding

higher margins and trade spend

• New health regulations on products with high sugar/salt content

• Consumer spend rationalized on essentials due to cost of living increased due to

covid-19 pandemic
• Low purchasing power of retailers due covid-19 pandemic
• Exchange rate hikes
SAUCE & SPICES STRATEGIC DIRECTION MATRIX
Market Penetration, New Product Development, Market Development Diversification

Market Penetration
• Increase the usage Sauce/Chutney/Sambols with Novel marketing approached
• Drive market share on Sauce by investing strategically
• Upgrade skills of sales team for range selling- Sauce, Chutney, Increase numerical distribution
• Top of the mind awareness

Product Development
• Develop price point based SKUs Sachets, Cups
• Combo packs offer- Sauce (Tomato, Chilli & Ketchup)

Market Development
• Strengthening online channels
• Optimizing underutilized channels (GT, MT, Horeca)

Diversification
Development of wellness range- Low sugar Sauce etc
 Sauce PRODUCT RANGE
• Tomato Sauce
Chutney
• Mango Chutney
• Date & Lime Chutney Spices- Pastes and Spices- Sambols
• Chilli Sauce
Pickles • Katta Sambol
• Chilli Garlic Sauce
• Brinjal Pickle • Katta Sambol
• Date & Tamarind Chutney
• Malay Pickle • Maldive Fish Sambol
• Tomato Ketchup
• Mango Pickle • Maldive Fish Sambol
• Ambarella Chutney
• Sinhalese Pickle • Lunumiris
• Extra Hot Chilli Sauce
• Lime Pickle • Lunumiris
• Mango Chutney
• Mixed Pickle • Seeni Sambol
• Red Chilli & Vin.Sauce
• Onion Pickle • Seeni Sambol
• Mango Chutney (Sweet)
• Garlic Pickle • Coconut Sambol
• Green Chilli Sauce
• Mango Chutney (Spicy)

• Sweet & Sour Sauce • Mixed Fruit Chutney

• Sweet Chilli Sauce

Revenue Contribution- Revenue Contribution- Revenue Contribution- Revenue Contribution-

28.1 2.1% 4.2% 0.8%
Target Market &
 SAUCE & SPICES CATEGORY STP ANALYSIS
Spices- Pastes, and Pickles &
Sauce Chutney
Sambals

Mass market-housewives age Mass market-Busy housewives

20-55 Mass market-housewives age 20-55 age 20-55,

High quality product with

Premium quality/moderately
Product High quality product with medium price
premium price
positioning moderately high price
 ANNUAL CALENDAR
Q1 Q2 Q3 Q4
April May June July August September October November December January February March
ATL

Brand Endoresement (Production+Endoresement) 1.5Mn

Chutney Thematic Ad (Production) 3.0Mn
Sambols- Radio 0.3Mn
Pickles Radio 0.3Mn
Media Advertising (NA)
Chutney Radio (Production) 0.3Mn
Spices range TV production 4Mn

New Product Launch- Mayonese/Oyester/Fish/BBQ

TV & Radio 4Mn
New SKU development-Promotional Budget
including Digital 1Mn
Mustard Paste Radio (Production) 0.3Mn
Digital
Management & Boosting 0.3Mn 0.2Mn 0.2Mn 0.2Mn 0.2Mn 0.2Mn 0.2Mn 0.3Mn 0.3Mn 0.2Mn 0.2Mn 0.3Mn
Additional content 0.1Mn 0.1Mn 0.1Mn
Recipe Videos-Digital 0.3Mn 0.3Mn 0.3Mn
Endoresement 0.5Mn 0.5Mn
Gift Cost 0.05Mn 0.05Mn
IG Influencer Campaign 0.1Mn 0.1Mn 0.1Mn

Promote user generated Content(Sauce & Spices) 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn
TikTok Campaign 0.3Mn 0.3Mn 0.3Mn

Online Marketing Site- Daraz.lk, Kapruka.lk &

Lassana Flora (web banners) 0.2Mn 0.2Mn 0.2Mn 0.2Mn 0.2Mn 0.2Mn
BTL & Activation
POSM Material- Chutney 1.0Mn 1.0Mn 1.0Mn
Activation & Events 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn 0.1Mn
CSR- Brand Related 0.5Mn 0.5Mn
Exihibitions 0.2Mn 0.2Mn

Partnerships with complementing products 0.05Mn 0.05Mn 0.05Mn 0.05Mn 0.05Mn 0.05Mn 0.05Mn 0.05Mn

Consumer Promotions-Banded offers 0.3Mn 0.3Mn 0.3Mn

CRM System 5Mn

Tactical- Paper insertions & Leaflet distributions Rs 2000 2000 2000 2000 2000 2000 2000 2000
SAUCE DETAIL PLAN
 SAUCE DETAIL PLAN

Corporate Objectives
• To maintain market leadership and control the market for next decade
Marketing Objectives
• To increase the market share and maintain the leadership in the company’s core product by ensuring and
creating customer loyalty
Societal Objectives
• To enhance brand perception of MD Sauce
 COMPETITOR LANDSCAPE- SAUCE
Brand Image/Quality (High)
• MAIN COMPETITORS
• KIST
• EDINBOROUGH
• KVC
• FESTIVA
• HEINZ (INTL)
• PRIMA STELLA
• TURKEY
• LAKMEE
• FORTUNE Price (High)
 BRAND ENDORSEMENT WITH KALASHOORI
SATHISCHANDRA EDIRISINGHE
Objectives- To promote the MD brand promote Heritage

• WHY SATHISCHANDRA EDIRISIGNHE?

• Sathischnadra Edirisinghe is considered as one of the earliest pillars of Sri
Lankan drama history, Edirisinghe is noted as a highly versatile actor with a
career spanning more than five decades.
• He is a recipient of life time awards at many award ceremonies.
• He is involved in many CSR activities through his Mihindu Foundation – Events
such as Suwada Padma rewarding artists, CSR initiatives to plant trees.

• Brand Endorsement
• Kalshoori Sathischandra Edirisinghe can endorese MD brand (Sauces and Spices)
to talk about MDs heritage and why people over decades trust MD brand
• He can endorse MD corporate brand as well as products brands.
• Theme- “Trusted over decades Trusted by Generations”
• Investment- 0.5Mn (Annual) (Brand Endorsement)
• Production 1.0Mn Time period- May/June
• Executed mainly in Social Media and Traditional media
 NEW PRODUCT LAUNCH- OYSTER/FISH/BBQ

NEW PRODUCT DEVELOPMENT

• Awareness building campaign to be done for New products.
• ATL campaign to be executed covering TV, Radio and Digital
• TV & Radio commercial to be produced.

Estimated Time Period- April/May/June

Estimated Budget- 4Mn on production 10Mn on Media

 NEW SKU DEVELOPMENT
Objectives- To induce trial for Chilli Garlic and Tomato Ketchup

New SKU development for Tomato Sauce/Chilli Garlic/Tomato

Ketchup sachet.
Sachet Combo pack to 4 units of Tomato, Chilli Garlic and Tomato
Ketchup.
 SOUND OF FRESHNESS-QUALITY CAMPAIGN
Objectives- To educate customers on Lug cap and advantages of it

1. The main objective is to increase awareness of this safety button cap. Consumers need to be educated that
this special lug cap with safety button is much safer than the shrink wrap cap (ordinary).
2. MD is the only Sri Lankan company that produces Sauce with the lug cap with safety button whilst Kist is
also having cap with the safety button.
Target Audience
3. All segments who purchase our Sauce bottle range. i.e. Consumers who are purchasing MD Sauce 200g,
400g, and 885g bottle.
4. The Insight
5. It was found that there is a consumer perception that Shrink-wrap seal is better than Lug cap with safety

Estimated Budget- 0.5Mn (Production only)

Estimated Time Period- April/May
Estimated Media Budget- 5Mn
CHUTNEY THEMATIC CAMPAIGN
 CHUTNEY

Corporate Objectives
• To gain market share in Chutney category
Marketing Objectives
• To promote the range and build awareness on usage
Societal Objectives
• To enhance brand perception of MD Chutney category
 COMPETITOR LANDSCAPE- CHUTNEY
Brand Image/Quality High

• MAIN COMPETITORS
• KIST
• MC CURRRIE
• KEELLS
• KIST
Price High
 CHUTNEY THEMATIC CAMPAIGN
Objectives- To build awareness and induce

Chutney TV Commercial
• Chutney TVC to be launched in April/May (use in Digital platforms as
well)
• Focus is to highlight different foods that can be accompanied with
chutney
• Mango chutney to be highlight (mainly)
• Use the existing radio commercial.(through out the year).
Estimated Cost- Rs 3Mn (Production)
Time Period- April/May 2021
Media Investment Rs 8-10Mn
Chutney Radio
• New Radio commercial to be produced end of the year align with the
TVC
 SAMBOLS & PASTE

Corporate Objectives
• To capture market share in Sambols/Paste category
Marketing Objectives
• To increase market share by 5%
• To build awareness
Societal Objectives
• To provide more healthy products in order to maintain our loyal customers
 COMPETITOR INFORMATION- SAMBOLS, PICKELS AND PASTE
Brand Image/Quality

• MAIN COMPETITORS
• KIST
• EDINBOROUGH

Price

Competitor Mapping
 MUSTARD PASTE RADIO CAMPAIGN

Mustard Paste Radio commercial

• Mustard paste radio commercial to be done in order to raise
awareness levels of Mustard paste
Estimated Cost Rs 300,000
Estimated Time Period- June/July
Expected media budget- 0.3Mn Radio
 PICKLES RADIO CAMPAIGN

Pickles Radio commercial

• Pickles radio commercial to be done in order to raise
awareness levels of Pickles
Estimated Cost Rs 300,000
Estimated Time Period- August
Expected media budget- 0.3Mn Radio
 SAMBOLS RADIO CAMPAIGN

Sambols Radio commercial

• Sambols radio commercial to be done in order to raise
awareness levels of Key Sambols such as Maldive Fish
sambol, Katta Sambol etc
Estimated Cost Rs 300,000
Estimated Time Period- May
Expected media budget- 0.3Mn Radio
 POP DRIVE FOR SPICE RANGE
Spices range TV commercial
• Spices range TV production in order to
promote the spices range including
Sambols, Pastes & Pickles
Estimated Budget- 4Mn

Chutney, Paste, Pickle s POP for GT

• POP drive for potential outlets which
can promote Chutney range, pickles and
paste covering Chutney range and rest
of pickle range
• For potential GT outlets
Estimated Budget- 2Mn
 IG INFLUENCER CAMPAIGN ALONG WITH TIKTOK

Objectives- To create engagement and hype

• IG influencer campaign promoting our spice range

with self made cooking`.Sambols , Paste Etc
• TikTok movements with our Sauce Thematic
campaign- “Rathu patata bola bola Idunu Thakkali”

IG Influencer
Estimated Time Period- June/December/March
Estimated cost- Rs 300,000

Tiktok
Estimated Time Period- August/November/Feb
Estimated cost 0.9Mn
 STRENGTHENING ONLINE PRESENSE
• Strengthening Online Presence In Daraz.Lk, Lassana Flora, Orel, Kapruka, Cargills Online,
Keels Online Etc
• Banner Advertising
• Range Promoting- Depth And The Length
• Partnerships/Promotions
STRATEGIC CORPORATE SOCIAL RESPONSIBILITY-TREE
PLANTING CAMPAIGN
Objectives- To create engagement and hype

Objectives
• To strengthen the connection between MD and
environment.
Mechanism
• To encourage our fan base to plant trees and
rewarding them.
• Partnership with Thuru for a loyalty scheme
• Digital platforms led
 CONSUMER ENGAGEMENTS
Consumer Promotions
• Free Non Woven Marketing Bag With Sauce 885g
• Bundle Offers- Sauce 200g (Tomato, Chilli Garlic, Extra Hot Chili, Ketchup And Different
Variants)
• Seasonal Offers- Free Faluda Mix With Sauce 885g
Estimated Time Period- May/November/Feb
Estimated Budget- 0.9Mn
 BTL-PARTNERSHIPS WITH COMPLEMENTING
PRODUCTS
Objectives- To educate consumers on complementing products and increase the usage.
• Partnerships With Food Vendors Such As “Pol Rotti With Pork”, Homemade Pizza, Kottu Labs Etc.
• Free sampling at Food fairs and exhibitions
• Mainly to promote our sauces, Chutney, Katta Sambal, Seeni Sambal, Lunu Miris, Chilli Paste, Chips etc.
Consumer Engagement:
Activations : On-ground
Chefs Guild Demonstrations

Sponsoring the pro Demonstrations in

food exhibition Demonstrations in special company
organized by the chef Chef Guild sponsored events:
guild sponsored events e.g. cookery shows
 CRM SYSTEM FOR BARGAIN SHOPS
Objectives- To create customer loyalty among our customers

Objectives
1. To sell more to existing customers
2. Generate more leads
3. Improve customer service
4. Promote offers to customers
5. Nature your prospects
Customer Relationship Management System for Factory fresh outlets
• Implementing a CRM system to customers who visit retails outlets in Nawala, Narahenpita and
Aththanagalla
• Create loyalty scheme where with every purchase customer obtains valuable points which they can redeem
in future purchasing.
• Digital based loyalty card which links your mobile number as customer ID