GROUP ASSIGNMENT

ON

SUBMITTED TO

Prof. Rajeev Kamble

BY

GROUP 3

PHALGUNI BANNERJEE (2012203)

RAVI KUMAR (2012238)

RICHA SHARMA (2012240)

SACHIN LUTHRA (2012251)

SACHIN MITRUKA (2012252)

ROUNAK SINGH VIRDI (2012260)

EVEREST SPICES

Everest Spices is an Indian manufacturing company which has been evolving since last

45 years. It mainly deals in ground spices and spice mixtures. Its market is not only India but it

also caters to market like US, Middle East, Singapore, Australia, etc where target customers are

non resident Indians.

It has won trust of the most consumers by winning Super brands status three years in a

row in 2003, 2006 and 2009. It also won FMCG Consumer Reaction Award. Everest started

began advertising aggressively on the television in 2003, and by 2005, it had 30% share of the

branded pure spices market in India. According to the 2007 study, Everest was India's largest

spices brand based in Mumbai. More than 20 million households used Everest spices regularly.

The brand was stocked by 400,000 outlets in more than 1000 towns across India. More than

3.705 billion packs of Everest product were sold each year. There were more than 42 blends

under the Everest brand name.

Everest serves various categories:

1. Ground spices

2. Spice mixtures

3. Herbal beauty care

4. Natural Health Care

5. Table top sprinklers

In these categories various variety of products are sold in different SKUS so that they can be

consumed and cater to different necessities of the Indian kitchen. Given the diversity of India's

consumers, blending a masala is both, a science and an art. It has to achieve a taste that meets

the specific taste demanded by a particular ethnic or regional group. Spices known for their

colouring, thickening, souring, and pungency properties are often added achieve masala blends

that are specific to specific tastes of communities from various regions and ethnic groups.

Further, many herbs, pulses and fresh spices are also added for their "cooling" and "nutritive"

properties to masalas. It is this complex blending of many spices that distinguishes Indian

cuisine from others.

In Ground Spices:

1. Three variety of chilly powder. Namely,

a. Tikhalal

b. Kashmiri chilli powder

c. Kutilal

2. Turmeric Powder

3. Coriander Powder

4. Black Pepper Powder

5. White Pepper Powder

6. Cumin Powder

7. Dry Ginger Powder

8. Dry Mango Powder

9. Kasuri Methi

10. Saffron

11. Hing powder & Hing yellow powder

In Spice Mixtures:

1. Kesari milk masala

2. Garam masala

3. Pavbhaji masala

4. Chhole Masala

5. Shahi Biryani Masala

6. Sambhar Masala & Super Sambhar

Masala

7. Chaat Masala

8. Tea Masala

9. Pani Puri Masala

10. Sabji Masala

11. Kitchen King Masala

12. Jaljira Powder

13. Shahi Garam masala & Royal Garam

Masala

14. Rasam Powder

15. Tandoori chicken masala

16. Meat Masala

17. Egg curry masala

18. Chicken Masala

19. Jiralu

20. Fish Curry masala

In Herbal Beauty Care:

1. Everest Henna Powder

Natural Health Care:

1. Jaljira Powder

2. Kesari Milk Masala

3. Tea Masala

Table Top Sprinklers:

Available in bottles only

1. Chaat Masala

2. Black Pepper Powder

PRODUCT CULTURE

Everest has striven to upgrade technology, improve production techniques, conduct research and

create attractive and modern packaging. It has spent considerable time and effort in improving

the distribution network so that the brand is on shelves in the shortest possible time, and what

consumers buy is the freshest product.

It has also outpaced competition by bringing in more blends and introducing new tastes to

different regions. In a way, Everest spice blends bring the palates and people of India closer

together.

Everest spices come in two forms: pure spices and blended masalas. The basic

ingredients are always sourced from regions where they are grown and are packaged in a way

that allows them to retain their true flavor and aroma. To create blends, Everest invests

extensively in researching traditional and authentic cuisines, evaluating cultural preferences and

quite simply following the evolution of changing tastes. The blends in the market which bear the

Everest legacy are a proud reminder that in an effort to capture and package the delights that

make Indian cuisine so agreeably international, the brand has left nothing to chance.

PRICING

The list shows the various price ranges of the different products by Everest.

Product Name Size MRP (Rs)

 Everest Black Pepper Pwdr 50 gm 53

 Everest Chat Masala Powder 50 gm

100 gm

500 gm

24

44

190

 Everest Chhole Masala Powder 50 gm

100gm

200 gm

26

48

85

 Everest Chicken Masala Powder 50 gm

100 gm

31

57

 Everest Dry Ginger Powder 100g 48

 Everest Dry Mango Powder 50 gm

100 gm

32

60

 Everest Egg Curry Masala 50g 27

 Everest Fish Curry Masala 50g 27

 Everest Garam Masala Powder 50 gm 33

100 gm 60

Everest Green Coriander Powder 200 gm

500 gm

40

90

Everest Hing Powder (Asafoetida) 50 gm 42

 Everest Jaljira Powder 50 gm

100 gm

21

40

 Everest Kashmiri Lal Chilly Powder 100g 45

 Everest Kasuri Methi Powder 25g 21

 Everest Kitchen King Masala powder 50 gm

100 gm

27

50

Everest Kutilal Red Chilli Powder 100 gm 24

 Everest Meat Masala 50 gm

100 gm

31

57

 Everest Panipuri Masala Powder 50 gm 25

 Everest PavBhaji Masala Powder 50 gm

100 gm

30

54

 Everest Rajma Masala 100g 44

 Everest Rajma Masala 50g 24

 Everest Sabji Masala 50g 22

 Everest Saffron 0.5g 99

 Everest Sambhar Masala powder 50 gm

100 gm

26

42

 Everest Shahi Biriyani Masala 50 gm 48

 Everest Shahi Paneer Masala 50g 31

 Everest Shahi Paneer Masala 100g 54

 Everest Tandoori Chicken Masala 50 gm

100 gm

28

57

 Everest Tea Masala Powder 50 gm

100 gm

35

68

 Everest Tikkalal Chilly Powder 50g

100g

12

24

 Everest Turmeric Powder 100 gm

500 gm

20

90

 Everest White Pepper Powder 50g 68

PLACE

Distribution model

C & F Agent ---> Distributor ---> Retailers ---> Consumers

PROMOTION

Everest's unique selling proposition has been led by its philosophy that the brand must

strive to be the perfect blend of pure spices. To support and further this promise the company

exerts itself to source the finest raw materials, create blends that are as unique as they are

authentic and to evolve packaging that will retain freshness and aroma, longer. On the

communications front, Everest has successfully used the mother-child relationship to its

advantage. The emotional cue, Ma Ke Hathon Ka Swad, is a take-off from the well researched

and understood fact that most children, when they grow up, continue to pine for and remember

with nostalgia the taste of food, mother cooked. The woman in her various avatars – mother,

daughter and wife – is at the centre of Everest's communications. Her role is strategic. She

delights in cooking for her husband and draws great satisfaction in watching her children grow,

as they relish the dishes she doles out.To pay tribute to this exceptional woman, Everest

developed a payoff line, Taste Mein Best, Mummy Aur Everest.

BRAND EXTENSION

Saffron is the stamen of crocus flowers. Hundreds of dry stamens make a gram of saffron. It is

this that makes saffron so precious – and attractive for adulterators. It is also the reason why

most people are circumspect in buying this very expensive condiment and look with a great deal

of suspicion when it is whipped out from under the counter. Everest was successful in

introducing saffron for two reasons.The first was that consumers had an abiding faith in the

brand; and the second was that the product it brought to the market was the pick of the harvest.

REGIONALISM LEVERAGING

Several other exciting launches in recent years have extended Everest's lead over

competitors. Its Super Sambhar Masala brought the original taste of increasingly popular

southern dishes to homes in other parts of the country; its Shahi Garam Masala allowed the hot

and tangy cuisine of Bengal to be re-lived in non-Bengali homes; the ubiquitous egg curry was

given a fresh appetizing taste by researching a favorite old recipe, while Everest's Fish Curry

Masala enveloped fish in a fine new blend of spices.

FACTS AND FIGURES

Vadilal Shah, the founder of Everest Masala, started his career as a shopkeeper in a 200

square foot shop.

Everest was the first masala company to introduce masalas in small sachets.

The first product to be launched by Everest was Milk Masala.

3705 million packets of Everest are sold each year. That's almost 705 packets every second.

MARKET STUDY BY THE TEAM

After conducting a study based on retailers and distributors in the surrounding areas, most

sold products that fall under the spice mixtures category and the most sold SKU is 50 gm. The

usual packs that are available in the market are of 15gm, 25 gm, 50gm, 100gm and 200 gm.

Some SKU of 500 gm are also available in Royal Garam masala, Kitchen King masala, chhole

masala, Kasuri methi, Chaat Masala, Tikhalal, Kutilal, Turmeric powder, Coriander powder and

Kashmiri chilli powder. Kutilal, Tikhalal, Garam masala and Super Garam masala are also

available in 1kg packaging. 4kg pack is available in case of Super Garam masala only. Also

Saffron is available in

1. 0.5 gms

2. 1 gms

3. 2 gms

COMPETITORS

As per the information gathered from the retailers in several areas of Nagpur, there are

several other local players available in the spices industries such as Waghmare spices, Suruchi,

Ambari, Queen, Suhana etc while other players like MDH, Catch, Badshah etc that are doing

good and giving head on competition to Everest. Local players like Suruchi and Ambari have a

very strong market presence in the local market whose unique selling proposition is there low

pricing. However bigger players like MDH and Badshah were more preferred by commercial

markets due to the higher margins given to them, ranging between 27 – 30 % as compared to 20 -

22% given by Everest and other companies. Everest is still the preferable brand for most of the

Indian household and its product like garam masala, chat masala, sabzi masala, meat masala are

the maximum selling products Indian market. In the different line extensions offered by Everest,

it was found that the small sachet products are in great demand by the Indian consumers whereas

lots of houses still prefer homemade spices.

BRAND PERSONALITY

Everest stands for aroma, purity and consistency. Perhaps, these are the most important

reasons why the brand enjoys a high level of loyalty with its consumers. Quite simply, over the

years, people have come to trust the Everest brand to provide them with the perfect blend of pure

spices. Or, indeed, help in creating food like mama made.

Segment: SEC B - A1, Tier 1, 2, 3 cities

Target: Everything revolves around housewife, mother, grandmother.

Positioning: The real taste agent for Indian daily food.

Also accepted in overseas

US

Middle East

Singapore

Australia

New Zealand

East Africa

The whole idea personality of EVEREST lies in the grounds of perfection.

Main focus on recipies which are in the favourite list and emerging recipies of the consumers,

plus creating authentic masala blends for them.

BRAND REJUVINATION

Everest masala packets are mostly bought for household purposes. Advertising in

magazines like Grihshobha, Sarita, Women’s era Hindi version etc, can attract a larger

market as the readers of these magazines are mostly women of age group between 20 - 45

who belongs to tier II and tier III cities.

Company can incorporate separate shelf-space at stores as part of promotion and sales.

As a result of which the products will be displayed separately and bound the customers to

remain stick to the Everest products. This is suggested because during a study conducted

by the team, it was observed that none of the retailers or the wholesalers kept Everest

Masale in their store at a distance which could be easily seen. Mostly they were kept

inside in a store or somewhere down the shelf where it was not visible.

Everest can collaborate with different food stalls to serve customers in order to promote

Everest brand or it can have a separate food outlets with the name “Everest Special” at

food courts of several malls by selling dishes using Everest masale’s. This kind of effort

will surely help in promoting the brand and enhance brand personality.

In a similar effort for promotion, they can collaborate with cooking classes for ladies in

tier 2 and tier 3 cities. Here the teacher will be teaching the students various recipies and

when to be told about the masala used, suggestion would be Everest.

Main sponsor of TV soaps like Khana -Khazana which teaches viewers to make several

recipes.

Collaborations with hotel management institutes so that they can develop the name of

their brand on the minds of the future chefs.

They can take out plastic containers specially designed to keep spices at households

because spices cannot be kept in the paper packaging’s, once opened they have to be

stored elsewhere. The catch here is that even if the consumer buys some other brand’s

masale once due to what so ever reason, the consumer is going to keep it in that Everest

container and next time when the consumer goes to purchase again, he/she will look for

Everest only because it was kept in the container of Everest, facilitating top of the mind

recall.

Everest can collaborate with premier institutes or professors to develop case studies based

on company experiences in production, manufacturing, and distribution of its products as

well as cooking experiences related to their products. These case studies can then be used

by various institutions (basically hotel management) for their studies.

EVEREST SPICE EXPERIENCE

We recommend that Customers should be given Everest Spice experience. To build a

corporate visiting centre for the products.  It should be opened to the public for tour and visitor

centre to educate the public on the process of spice manufacturing (till the packaging) as to

bringing the Everest spices products and brand to life. To add to this various competitions inside

it can be held and distribution of certificates to visitors who perform well can be distributed.

This will create the trust in visitors as people prefer more homemade spices and also the

brand loyalty could be reinforced.

Visitors can be:    

    Tour could be for Hotel management students for industrial visit

    Coupons could be given by the shopkeepers to the customers for Everest experience

PACKAGING

Packaging improved: By using a zip.

It has been generally observed that small sachets and 100gm packets are used very fast and it

does not take more than a week to get over in households, but the bigger packs when once

opened there is no system present to keep them air tight as the packaging is such that they have

to be kept in a separate container. So the suggestion is to make zip pouches like the ones that

come for Haldiram’s bhujia. This will reduce the extra storage space used by the consumer and

in a way promote its usage in long run once user identifies it advantages.

Print on packaging should also be in Hindi

Another important observation by the team while market studying the product was that, in the

packaging (all SKU’s) the information given was not in hindi but in English and Urdu. Only the

dish preparation was given in hindi. Therefore other information should be printed in hindi as

well so that consumers can understand.

Printing of woman and chef on the packaging

As the association Everest has always been with a woman throughout theyears. It has also shown

traditional halwai’s (now chefs) as a part of their adverts so another suggestion was to print a

n.ext-door, average looking, middle class woman on the smaller SKU’s packs so as to develop

the connect while in the larger SKU’s print of traditional chefs.

PRICING

Increased market penetration through slightly increasing its margin as its 20-22% for Everest and

27-30% for MDH, so the commercial market is captured by MDH. Therefore we would suggest

Everest to increase its margins to wholesalers from where the bulk purchasing of the commercial

sector is done.

PLACE

Placement of products at these 5 stages would certainly help in becoming the overall market

leader from the household market leader.

A + > At these places the company will have to push the product via its retailers and distributors

by increasing the margin.

A >It has been observed that at in tier 1,2,3 cities there are many multi apartment projects have

come up in recent years.100’s of families stay in one apartments and there is only one small

departmental store in a complex, therefore targeting these complexes and the departmental store

will ensure 100’s of families buy from the same outlet and that too only Everest’s product.

MARKET DRIVERS

Higher disposal income if middle class.

Availability at more outlets.

PROMOTION

While creating adverts the process to be kept in line with where the idea would be to show

woman power.

Show woman power : Throughout life. Unmarried girl (Demand of good food by the people

who have come to approve her for marriage) -> Married woman (Demand of good food by

husband) -> Woman with children (Demands of good food by children) -> Grandmother (The

whole family looks upto her for traditional good food)

Since the commercial market has never been targeted, the adverts should also be released with

chefs.

STRATEGIC AND FINANCIAL OUTCOME

Planning over developing new products and promoting brand using new and better methods will

help in capturing the market at a forefront. As we have seen and compared with its counterparts

that the same and better products can be developed.

Development of new products will lead for the company to start up with new inventories that

will lead to investment from its revenues. Initially the company may have to undergo

investments and use of its revenues for a period of time (say a quarter) then these products with

good branding strategies will help to capture the market and provide with equivalent and higher

growth in revenue in future.

Examples of products can be looked upon are like pickles in different flavors (capturing the

whole India) that we are proposing for the company as brand extension keeping with the original

value proposition.

Similarly, Papad in different flavors, tomato puree, ginger garlic paste, aam paana and Nimbu

pani are also brand extension for the company and strategically the brand name can prove vital as

even a small branding activity with same value proposition can capture the market easily. All

these examples can be looked upon as game changer for higher revenue generation in future

keeping in mind the brand value. Thus, financial outcome can prove to be positive as well.

In Pickles segment:

Market studies report Nilon captures the highest market with annual production of 30000 metric

tons of pickle with total revenue of Rs. 240 crore and annual growth of 59%. Everest should try

to capture atleast 10% of the market in its 1st year.

In Papad Segment:

Lijjat papad has an overall market share of 90% in India. Everest has to come up with extensive

branding strategies so that they can capture at least 6-7%of the market in its initial years.

In Ginger-garlic paste segment:

Dabur captures the highest market share in this product category. Everest with its value

proposition can work to break into this segment by capturing at least 10% in a year.