Presented by

MMM - III

Packaging Innovation

SN Roll No. Name

1 6 Shweta Dilip Apte

2 16 Prashant G Dadrekar

3 26 Shreyas D Gharat

4 46 Mittal Anurag

5 56 Jayaram G Nair

6 66 Aaditi Kishor Pareek

7 76 Hema Raghani

8 86 Ujwala M Sapte/Kamble

9 96 Guruprasad S Shetti

10 106 Swetha Ratnakar

11 116 Jyoti A Waingankar

Marketing Strategy framework

Emerging Trends-Instant Food Industry - Current Scenario

Convenience food -Instant ready to eat are on rise.

Consumer expectation and behaviour is changing and demand

With increasing number of modern trade outlets face of trade is changing for ever

Urban is where the action is Out of 1 billion population- 30% urban

India is urbanizing in a rate of 2.5% per annum

The number of cities over 10lacs population is expected to be double in next 20 years (35 to 70cities)

Cont…

Absolute no. of consumers in SEC A & B1 is going up and is comparable to a few developed countries.

Increasing no. of professionals - growing service sector

- Higher OOH consumption

- Increasing stress levels

- Awareness of global happenings & international trends

Increasing no. of skilled working women (15% in Urban India)

- Spending power

- Convenience products

- “Quality time” with family

Market Analysis

Witnessed a shift in the use of the raw material-from conventional traditional material to synthetically produced materials.

Ave no. of meals consumed away from home = >3.10

Ave no. of times no time for/access to hot meal =>2.29

Consumers are become more time-challenged

Consumers demand greater convenience and speed fo food preparation.

Packaging industry growth: 2—3% a year

By 2012, 65% of the food Money will be spent on convenience food.

Industry Analysis

The increasing costs of transportation and warehousing have necessitated more modern packaging systems

e.g.: plastic pouches for milk replacing glass bottles, enabling the industry to reduce their inventory and transportation costs

Macro Environment

Micro Environment

Situation Analysis

•Needs acceptance in the rural markets•Economies of scale•Key players with good reputation

•Product Innovation

•High Differentiation

•Distribution Network

•Existing technologies

•Price war

•Piracy

•High demand for hot Food•First Mover advantage•Rural market needs toBe tapped

THREAT OPPORTUNITIES

STRENGTH WEAKNESS

SWOT Analysis

Consumer Analysis

Consumers want nutritious and hot convenience meals

Affordability issue may come each packing can cost 12 Indian rupees

Usage pattern:

• Heavy: 20%

• Medium: 30%

• Light: 50%

Preferences for to traditional methods

Purchasing pattern:

• Regular users will buy in mass as 2-3 packs together. But market research required to be done

Unique buying attribute:

• UBA of intermediaries and consumer is only convenience

Competition Analysis

Large packaging companies are very few. Very less competition

Since this packaging product is very different from the conventional packaging. Competition at this stage is almost nil but will increase when the product becomes a “Me –too” product

Competitors

Since our product is a packaging innovation there is no direct competition.

However in India a lot of products are used to pack the tiffins everyday so these products can be considered as an Indirect competition

They are as follows:

Tupperware

Cello (Hot tiffins)

Zip pouch

Aluminium foil

Problem statement

No Packaging product available as of now that is light convenient to carry and heats food on demand without a power source

Management Objectives:

To achieve 50% share of Indian market of food Packaging industry in the next 5 years.

To set up the distribution network in metro cities within one year.

Eat on the Move…..

Vision :To be the most preferred brand in Food packaging Industry in India by 2015

and then become a global player by 2020

Mission: To use technology and offer unique Food Packaging products.

Value :Innovation, passion for performance.

Product Description

What is it?

Unique food-packaging technology that can store and heat food, without a power source

Light-weight, quick and efficient, power source-independent, convenient and safe

Relies on exothermic energy provided by chemical reactions to heat food up

How to operate it?

1. Press a button at the base of the container

2. Shake it a little to speed up the process

3. Pour in food

Product Features:

An easy 3-step process! Long-lasting reaction means food can also be continuously kept warm After usage, it can be thrown away, fuss-free

How does it work?

Double-layered container

Between layers, calcium chloride is scattered and distilled water in sachet at base of container

When user presses base, a needle inside will burst the sachet of water and exothermic chemical reaction will start!

Heat conducted through inner thin plastic layer to food

Direction of Force

50ml Sachet of waterCalcium Chloride powder (10g)

Methodology & sample

In home interview - face-to-face

Fieldwork - across Mumbai

Questions based on – attributes of the products that are used for packing home made

food and the use of various media by people

Primary survey - questionnaire

100 respondents

Users of packaging material on a regular basis.

`

Who?

What did we do?

RESEARCH OBJECTIVE :

Analyze the preference of target customer segment s - attributes, benefits ,brand and Advertising with regards to the packaging used

Consumer Insights Hygiene point of view: One time use and throw

Physical point of view: No need to carry tiffin back

Breakfast /lunch while on the move

Working Mothers guilty of not providing hot meals to their kids or ensure that their husbands feel that they are having meals which have just been cooked

Marketing Strategy

• To provide hot meals anywhere anytime thereby addressing the guilt that working mothers have by

not being able to provide hot meals

Marketing Mix – The 6 P’s

MARCOMM STRATEGY

Segmentation

Target Audience

Decision Maker: Housewife, working professionals, students

Demo: 22- 45 years

Income: > Rs 300,000 pa

Select Towns (+50 lakh)

Behavioral: Active Lifestyle

Total Number of target segments: ( 3 with

Focus on working women to address their guilt

Of not being able to provide hot meals to

Their kids)

Benefits Tangible

Easy to carry

Easy to dispose

Recyclable

Light weight

Easy availability

Hot Food

Intangible

Guilt feeling addressed

Feel good factor about not having to carry the tiffin back home

Feeling of eating healthy nutrition

Positioning

“ Hot & healthy food on the move”

Financial Projections

Market Strategies: Sales Potential

Total No. of People (P) = Total No Target Segment* % likely to buy

= 90,00,000*0. 05 = approx. 4,50,000

Ave Rev per customer/year (R) = Price of Pack (10) * Average No of Packs

= Rs. 75* 6 = Rs. 450

Sales Projection (S) = R * P = 4,50,000 * 450

= Rs. 20,25,00,000 or say Rs 20,00,00,000

Note : Target segment based on NRS 2008-09 by MRSI for top 6 cities (Mumbai, Delhi, Bangalore, Hyderabad, Chennai, Kolkatta)

Income Statement : Food Warmer

S.No. Description Amount/Value

1 Establishing market share goal

90,00,000 potential users x target of attracting 5 % of the market = 4,50,000 users

2 % of mkt. to be reached by advtg.

Intend to reach 50 % of market with advtg. Message i.e. 90,00,000x 0. 50 = 45,00,000 (aware prospects)

3 % of aware prospects who can try the brand

-To target 40 % of aware prospects to try the brand i.e. 45,00,000 x 0.4 = 18,00,000 (trials).

- Market goal is 25 % of all trials become loyal users i.e. 18,00,000 x 0.25 = 4,50,000 users

4 Advt. impressions per 1 % trial rate

Estimated that 40 advtg. Impressions/exposures for every 1 % population would bring 40 % trial rate

5 GRPs required to be purchased (1 % population exposure)

Required to achieve 40 exposures to 50 % of the population, GRPs purchase i.e.40 x 50 = 2000

6 Advtg. Budget based on avg. cost of GRP

Mkt. estimate of 1 impression per 1 % population is Rs. 15000. Thus, 2000 GRP x 15000/- = 3,00,00,000 (60 % of operating expenses, initially)

MARCOMM BUDGET : OBJECTIVES & TASK METHOD

Objective To ensure the top of mind positioning of the brand in the packaging segment in the minds of our target audience

(50%) up to 31.3.2011.

BudgetAnnual advertising budget of Rs. 3 crs with WPP Mindshare as

media partner (Both ATL and BTL promotions)

Marcomm Strategy / IMC

IMC Campaign

Reach : Since we intend to reach 50 % of the Target Market (Refer to financials). Our MARCOMM aim would be to reach out to at least 45,00,000 users by 31.3.2011 and make them aware prospects

Frequency: To make sure that the brand occupies the top of the mind we intend to air more advertisements between 7 to 12 pm on all leading channels (Colors and Zee)(data from primary survey)

Impact : Monitor sales quarterly to check the impact on the consumer

Continuity : Frequency would be continuous with expected exposure twice a week

Media strategy

Food Warmer

Marketing organisation

Category Planning

Brand Planning

Integrated Brand Communication

Innovation

Customer

Measurement

Consumer Understanding

ATL Activities

ATL – Budget (%)

•News Paper (40 %)

•Television (50 %)

Note : 10 % of overall ATL budget is earmarked for emerging social media as The target market are innovators-early adopters who access networking sites

North East West South

•Delhi•Agra•Indore•Gwalior•Haryana•Chandigarh•Lucknow

•Ahmedabad• Baroda• Rajkot• Surat• Pune• Nagpur• Nashik• Kolhapur• Panjim

• Kolkatta• Bhubneshwar

• Chennai• Banglore

Road Map for Expansion

Branding

Brand salience – Healthy hot food makes you healthy.

Brand image – To be conveyed by emphasing on the unique value proposition

Brand association – Continuous advertisement and sales promotion

Brand promise – Hot food while on the go.

Benefits

•Easy to carry

•Instant heat up

•Readily available

Tangible

Intangible

Self Expressive

• Home food on

the move

• Uniqueness of

the product

• Convenience

Thank You.