FROZEN POTATO PRODUCTS INDIAN MARKET STUDY

&A MARKETING PLAN

BY: VIKAS SOODE-mail: vikassood65@gmail.com

Feb-2017

1- MARKET STUDY

a.) FOOD & FROZEN FOOD MARKETb.) FROZEN POTATO PRODUCTS*Info from secondary sources & trade.

1)ESTIMATED TOTAL FOOD MARKET IS ABOUT $300 Bn (Rs. 2 LAC CRORE) OUT OF WHICH 30-35% (Rs 60000 CRORE) IS PROCESSED FOOD MARKET.

2)FOOD RETAIL MARKET SIZE IN 2014- Rs. 25 LAC CRORE WHICH IS LIKELY TO GO TO RS 61 LAC CRORE IN 2020.

3)FOOD SERVICE MARKET IN 2015 WAS ABOUT Rs. 7 LAC CRORE & IS INCREASING CONTINUOUSLY. THE STAND ALONE OUTLETS HAVE A VERY BIG SHARE.

4)FROZEN FOOD MARKET WAS PROJECTED TO DOUBLE IN 2019 FROM 2015.GROWTH RATE IS ABOUT 20-25%. PA

5)OF THE TOTAL FROZEN FOOD MARKET 75-80% IS FROZEN VEG. & SNACKS MARKET.

ABOUT FOOD MARKET

6.) OF THE TOTAL FROZEN VEG. FOOD MARKET 60-65% IS FROZEN SNACKS MARKET & THE % SHARE IS DEPLETING VIZ-A-VIZ FROZEN VEGETABLES.

7.) THE MAJOR FROZEN FOODS CONSIDERED ARE: CHICKEN,MUTTON,PORK/VEG./SEA-FOOD & FISH PRODUCTS.

8.) MOST POPULAR RETAIL PACK SIZE IS 300-500 GMS & THAN 0-300 GMS. CUSTOMERS START WITH SMALLER PACKS INITIALLY & GRADUALLY SHIFT TO BIGGER PACKS.

9.)THE CUSTOMER PREFER READY TO COOK/READY TO USE PRODUCTS MORE IN COMPARISON TO RAW FROZEN.

10.) RETAIL MARKET TO FOOD SERVICE MARKET RATIO IS ABOUT 40:60, BUT RETAIL MARKET’S GROWTH RATE IS MORE THAN THAT OF THE FOOD SERVICE MARKET.

11.) IN RETAIL MARKET, SALES RATIO OF SMALL-RETAIL TO RETAIL CHAINS (MODERN RETAIL) IS ABOUT 50:50.

12.) VERY SELECTED NATIONAL BRANDS EXIST IN FROZEN VEG. & SNACKS MARKET. MOSTLY ALL CO’S FOCUS ON 1 CATEGORY OF PRODUCTS.

13.) ONLY SMALL/REGIONAL PLAYERS EXIST IN ETHNIC INDIAN FROZEN SNACKS MARKET.

14.) MOST OF THE VEG SNACKS PRODUCTS ARE ON WESTERN PATTERN, AND ARE POTATO BASED.

15.) NATIONALLY, MOTHER DAIRY LEADS IN FROZEN VEG. PRODUCTS, WITH ALMOST 50-55% SHARE. REST ARE REGIONAL PLAYERS.

16.) IN FROZEN VEGETABLES, FROZEN GREEN PEAS COMMAND ALMOST 70% SHARE & IS WIDELY ACCEPTED PRODUCT.

17.) THERE IS CONSUMPTION DIVERSITY OF VARIOUS FOOD PRODUCTS IN INDIA ACROSS REGIONS.

18) ALMOST 30-35% OF THE INDIAN POPULATION IS OF TOTAL VEGETARIANS.

19) CONSUMER BRAND LOYALTY IS STRONG & INSTORE /WET-SAMPLING PROMOTIONS ARE VERY EFFECTIVE TOOLS ALONG WITH CROSS- PROMOTIONS.

POTATO PRODUCTS

1)UNTIL THE EARLY 1990S, MOST POTATOES WERE GROWN AND CONSUMED IN EUROPE, NORTH AMERICA & COUNTRIES OF THE FORMER SOVIET UNION. 

2) DRAMATIC INCREASE IN POTATO PRODUCTION & DEMAND IN ASIA, AFRICA AND LATIN AMERICA, WHERE OUTPUT ROSE FROM LESS THAN 30 MN T IN THE EARLY 1960”S TO MORE THAN 165 MN T IN 2007. 

3) IN 2005,FOR THE FIRST TIME, THE DEVELOPING WORLD'S POTATO PRODUCTION EXCEEDED THAT OF THE DEVELOPED WORLD. 

4)INDIA IS SECOND LARGEST POTATO PRODUCER(45,000,000 T IN 2014:FAO) SECOND TO CHINA & BOTH TOGETHER PRODUCE A THIRD OF TOTAL WORLD PRODUCTION.

5.) FROZEN PRODUCTS’ MARKET IS TOTALLY SNACKS’ PRODUCTS, AND NO MAIN-COURSE/MEALS ARE AVAILABLE.

6.) MARKET IS DOMINATED BY MC-CAINS, COMMANDING ALMOST 80% SHARE, BOTH IN RETAIL AND FOOD-SERVICE SEGMENTS. OTHER SIGNIFICANT PLAYERS ARE YUMMIEZ & SUMERU

7) HIGH BRAND LOYALITY EXISTS FOR MC CAINS PRODUCTS BEING FIRST ENTRANT & AGGRESSIVE MARKETER.

HYFUN FOODS IS A RECENT ENTRANT MAINLY FOCUSSING ON FOOD SERVICE SEGMENT.

8.) THE SELLING RATIO OF FROZEN FRENCH FRIES VS. FORMED POTATO PRODUCTS IS ABOUT 50:50.

9.) THE SELLING RATIO BETWEEN RETAIL AND FOOD-SERVICE MARKETS IS ALSO ABOUT 60:40.

10.)PRESENT TOTAL FROZEN POTATO PRODUCTS MARKET(EXCEPT QSR) IS ESTIMATED TO BE AROUND 3,000-4000 TONNES/ MNTH.

10) APPROXIMATE PRICE REALIZATION FOR FORMED POTATO PRODUCTS IS ABOUT RS.100-110/KG, AND FRENCH FRIES RS 75-80 DEPENDING ON PRODUCT & LOCAL TAXES ETC.

MARKET SCOPE- POTATO PRODUCTS

1)PROCESSED FOOD MARKET, INCLUDING FROZEN FOOD MARKET IS CONTINUOULSY GROWING.

2)BOTH END CONSUMER & FOOD SERVICE ARE ADAPTING POTATO PRODUCTS RAPIDLY DUE TO INC. AVAILABILITY, CONVENIENCE AT RIGHT PRICE POINT.

3)SCOPE EXISTS FOR MORE FOOD SERVICE SPECEFIC PRODUCTS & ALSO FOR ETHNIC INDIAN, OVEN READY, MICROWABALE PRODUCTS FOR CONSUMER MARKET.

4)LATENT DEMAND FOR NON-SNACK PRODUCTS EXISTS VIZ READY MEALS / DISHES.

1)MARKET IS EXPANDING WITH BETTER INFRASTRUCTURE, GROWTH OF ORGANIZED RETAIL & FOOD SERVICE MARKETS.

2)USER FRIENDLY CONVENIENCE PRODUCTS WITH HIGHER VALUE ADDITION HAVE BETTER FUTURE.

3)SINCE HIGHLY RATED PRODUCTS ALREADY RULE THE MARKET, THE PRODUCTS PROVIDED HAVE TO BE OF COMPARABLE/ BETTER QUALITY & BETTER TASTING.

4)AS CONSUMERS ARE GETTING HEALTH CONSCIOUS, NON-FRIED PRODUCTS WILL GAIN MORE POPULARITY GRADUALLY.

MARKETING STRATEGY*For North based plant.

1)TO ESTABLISH DISTRIBUTOR/ WHOLE SELLERS NETWORK IN ALL METROS & MAJOR CITIES OF NORTH & WEST INDIA FOR PROVING PRODUCTS TO CONSUMERS & FOOD SERVICE SEGMENT.

2)TARGET 10-15% SHARE ON NATIONAL BASIS IN FROZENPOTATO PRODUCTS IN 18-24 MONTHS TIME.

3)INITIATE & FORM BUSINESS RELATION WITH LARGE BUYERS /RESELLERS IN MODERN RETAIL, HORECA , QSR & ONLINE RETAILING.

4)IN RETAIL, FOCUS ON ORGANIZED RETAIL AS THEY HAVE BETTER SELLING INFRASTRUCTURE.

5)CREATE ROBUST COLD CHAIN & QUALITY PARAMETERS FOR RE-DISTRIBUTION TO MAINTAIN PRODUCT QUALITY.

5.) PROVIDE CUSTOMERS ‘VALUE FOR MONEY’ FOR RAPID GAINS IN THE MARKET.

6.) USAGE OF ‘SLIDING SCALE’ PRICING FOR VOLUME CUSTOMERS.

7.) ELABORATE USAGE OF BTL & SOCIAL MEDIA MARKETING FOR BRAND AWARENESS & BUILDING BUSINESS IN CONSUMER MARKET.

8.)HAVING EXPERIENCED, STRONG SALES TEAM, BUILDING EFFECTIVE SALES MANAGEMENT & CRM SYSTEM.9) DEVELOP SNACKS KIOSK MODEL FOR SIS IN RETAIL CHAINS & IN MALLS FOR NCR.

SALES PLAN

a.) SEGMENT PLANb.) GEOGRAPHICAL PLAN

SEGMENT PLAN1) HORECA: HOTELS, RESTAURANTS, BANQUETS, CATERERS,

HALWAI,FAST FOOD JOINTS, CAFÉ, BARS ETC.2) QSR CHAINS: DIRECT/ SUPER STOCKIST.3) SMALL RETAIL: THROUGH DISRTRIBUTORS.4) RETAIL CHAINS : DIRECT/ SUPER-STOCKIST/DISTRIBUTORS.5) ONLINE RETAILERS: DIRECT/ SUPER STOCKIST/DISTRIBUTORS

GEOGRAPHICAL PLAN6) NORTH - WEST & SOUTH INDIA’S METROS, A & B CLASS CITIES

PROMOTIONAL PLAN

1)SALES CALLING & FREE SAMPLING FOR HORECA BUSINESS.

2)HAVE HORECA SPECIFIC DISTRIBUTORS WITH EXISTING CLIENT BASE.

3)USAGE OF CHEF FORUMS, COOKERY SHOWS FOR PRODUCT ENDORSMENT.

4)PARTICIPATION IN TRADE EVENTS,LOCAL EVENTS & EXIBITIONS.

5)USAGE OF MERCHANDISERS, IN-STORE PROMOTIONS & WET SAMPLING

6)USAGE OF INSTORE POP MATERIAL, SIGHNAGES ETC.

7.) USAGE OF CROSS-CATEGORY PROMOTIONS PERODICALLY.

8.) PERODICAL SPECIAL PROMOTIONS WITH ORGANIZED RETAIL PLAYERS.

9.) USAGE OF FOCUSSED SMS CAMPAIGN.

10.) USAGE OF DIGITAL MARKETING ,ONLINE TRADE PLATFORMS FOR BRAND AWARENESS & PROCURRING BUSINESS.

11.)USAGE OF ONLINE RETAILERS FOR PROMOTING SALES THROUGH SPECIAL OFFERS.