AN OVERVIEW OF PICKLE INDUSTRY IN INDIA

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Pickles & chutney is the traditional specialties product of India and has gained an important position in the Indian cuisine.

They are eaten along with main course and provide tempting tastes.

Pickles are prepared from Fruits and Vegetables and they supplement the food with vitamins and minerals.

There are many types of pickles available in India like Chilly Pickles, Green Pickles, Lemon Chutney, Mango chutney, Gherkins, Mango Pickles, Onion Prpd/Prsvd and Tomato chutney etc.

India's Export of Pickles & chutney was Rs. 250.62 Crores in 2007-08.

The major market for Indian Pickles & chutney are Russia, U.S.A, Belgium, Netherlands and France.

INTRODUCTION, HISTORY & OVERVIEW OF THE COMPANY

JASHN PICKLES WAS EARLIER KNOWN AS BOOM PICKLES.

BOOM PICKLES WAS INCORPORATED ON MAY 15TH 1989 & IN RECENT YEARS HAD ACHIEVED TREMENDOUS SUCCESS IN INDIA.

BUT DUE TO IMMENSE COMPETITION THE COMPANY WAS NOT ABLE TO TAKE QUICK DECISIONS & DID NOT CHANGE ITS STRATEGIES IN THE COMPETITIVE AMRKET.

EVENTUALLY THE GOODWILL OF THE COMPANY DIMINISHED & THE BOARD OF DIRECTORS RESIGNED.

A NEW BOARD CONSISTING OF 4 BOARD MEMBERS FROM THE SAME INDUSTRY WERE APPOINTED.

THE NEW BOARD SUGGESTED A CHANGE IN NAME WHICH WAS EVENTUALLY AGREED BY THE SHAREHOLDERS & THE COMPANY LAW APPROVED OF IT.

THE DETERMINATION & HARD WORK PUT IN BY THE EMPLOYEES OF THE COMPANY PAID OFF & JASHN PICKLES NOW HAVE MANUFACTURING UNITS IN ALL THE ZONES VIZ NORTH, EAST, WEST, SOUTH.

THE COMPANY RETAINED ITS BASE IN MUMBAI.

STRATEGIES ADOPTED IN INDIA

THE PRINT MEDIA & THE 'IDIOT BOX' HELPED US IN ACHIEVING THE REQUIRED ATTENTION LIKE THE NEWS OF OUR COMEBACK IN THE NEWSPAPER & TELEVISION CHANNELS.

THE BILLBOARDS ON THE BEST BUSES IN MUBAI, POSTERS IN THE LOCAL TRAINS & ON THE OOH MEDIA SERVICE IN RAILWAYS HELPED US SET OUR IMAGE IN THE MINDS OF THE PEOPLE.

A NEW STRATEGY WHICH IS CALLED THE PIQUE TECHNIQUE WHERE YOU KEEP ON REPEATING THE NAME IN FULL SPEED. THIS IRRITATES A NORMAL HUMAN BEING BUT AT THE END OF THE DAY THE NAME REGISTERS IN HIS MIND.

NEED TO GO GLOBAL

GLOBALIZATION IS NECESSARY FOR THE FOLLOWING REASONS:

1: PROFIT MAXIMIZATION: THE MAIN MOTO OF A BUSINESS IS TO ACHIEVE PROFITS. IF WE ENTER INTO A WIDER MARKET THE CHANCES OF PROFIT INCREASES & WHAT GREAT OPPORTUNITY TO ENTER THE FOREIGN MARKET AFTER THE SUCCESS OF YOUR PRODUCT IN INDIA.

2: STAGNANT OR SHRINKING DOMESTIC MARKETS: THE PICKLE INDUSTRY IN INDIA HAS GROWN VERY RAPIDLY IN RECENT TIMES. A LOT OF MANUFACTURERS HAVE COME INTO EXISTENCE WHICH HAS SHRINKED THE MARKET FOR PICKLES IN INDIA. ALTHOUGH COVERING ENTIRE INDIA IS NOT POSSIBLE AS THE SCOPE IS HUGE WE HAVE OPTED TO GO GLOBAL.

3: FOREIGN REVENUE: GLOBALIZATION IS NECESSARY TO EARN FOREIGN EXCHANGE CURRENCY FOR THE COUNTRY AS IT IS OUR DUTY TO EARN FOR OUR COUNTRY. THIS WILL HELP US TO ACHIEVE ECONOMIES OF SCALE.

4: REDUCE DEPENDENCY ON SINGLE MARKET : AS MENTIONED ABOVE, THE COMPETITORS ARE INCREASING DAY BY DAY IN INDIA. SO TO REDUCE THE DEPENDENCY ON A SINGLE MARKET WE PLAN TO GO GLOBAL IN SEARCH OF A MUCH BIGGER MARKET & LESS COMPETITION.

WHICH COUNTRY?

IT IS THE FIRST TIME FOR JASHN PICKLES TO GO OVERSEAS.

AFTER MARKET RESEARCH IN MANY DIFFERENT COUNTRIES WE ZEROED IN ON THE UNITED ARAB EMIRATES (UAE).

The United Arab Emirates (UAE) is a situated in the southeast of the Arabian Peninsula in Southwest Asia on the Persian Gulf, bordering Oman and Saudi Arabia. The seven states, termed emirates, are Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain.

The UAE, rich in oil and natural gas, has become highly prosperous after gaining foreign direct investment funding in the 1970s.

The country has a relatively high Human Development Index for the Asian continent, ranking 31st globally, and had a GDP purchasing power parity of $200.5 billion in 2009 according to the IMF.

THE POPULATION OF THE COUNTRY IS 4,621,399.

THE CURRENCY IN UAE IS DIRHAMS (1 DIRHAM = 13 INR).

WE WILL BE TARGETING 3 OF THE 7 EMIRATES I.E. ABU DHABI,DUBAI & SHARJAH AS OUR FIRST TARGET AUDIENCE IS INDIANS & THESE THREE EMIRATES CONSTITUTE A HIGHER PERCENTAGE OF INDIANS.

WHY UAE?

Indians in the United Arab Emirates (UAE) constitute a large part of population of the country.

Over a million Indian migrants are estimated to be living in the UAE (2000), who form over 40% of the total population of the UAE.

A majority of Indians live in the three largest cities of the UAE - Dubai, Abu Dhabi and Sharjah.

Indian contact with the emirates that now constitute the UAE dates back several centuries, as a result of trade and commerce between the emirates and India.

More recently, the UAE has experienced a tremendous increase in the population of Indians who, having migrated to the country as a result of opportunities in petroleum, construction and other industries, far outnumber the population of local Emiratis.

While most Indian migrants support the manufacturing and transport industries, a sizable minority of migrants are involved in professional services and entrepreneurship.

Relations between India and the UAE have traditionally been friendly, though recent incidents relating to the treatment of the Indian migrant labor force by companies in the UAE have been the source of friction between the two nations.

Also UAE is the hub for exports in the gulf so it will be easier for us in the future to export in gulf countries.

PRODUCTS IN UAE

TRADITIONAL

EXOTIC RECIPIES

JASHN SPECIALITIES

DIET PICKLES

NON-VEG PICKLES

Mango

Pickled potatoes

Cheese dips garnished with zatar

Soya pickles

Chicken pickles

Lemon

Pickled mushrooms

Lemon marmalade

Bitter guard pickles

Prawn pickles

Mix vegetable

Pickled okra

Strawberry Pickles

Amla pickles

Fish pickles

Green chili

Pickled chickpeas

Lamb pickles

Red chili

Pickled lentils

Eggplant

Carrot

Onions

Garlic pickles

AN ARTICLE ON PICKLES

A report by Punjab Agricultural University (PAU) stated that during the year 2000-01, total production of pickles was 13645.16 metric tones and in 2002-03 the country earned Rs 154.16 lakh through exports.

The exports could be doubled if provided efforts were made to organize the pickle industry.

However, by using little care and simple technology, pickles can be prepared and preserved for a long period, the report suggested.

The finer aspects of pickle making can boosting export of this delicacy from India.

In order to overcome bitter taste of pickles the report pointed out that spices should not be cooked for a long time and a low concentration of vinegar should be used. Strict hygienic practice and iron utensils be never used.

The scum formation in pickles occurs when mild yeast gains entry into the pickles. The problem can be overcome by adding acetic acid.

Regarding cloudiness in pickles, the report said this can be seen in onion pickles or where whole fruits or vegetables are the material for pickle making. It can be checked by using small and thin textured material for pickle making especially onions.

Blemishes in pickles can be seen in case of onion pickles and is due to some kind of fermentation. Such defect can be prevented by using fresh vinegar at the time of curing. Good quality oil and spices should be used for getting best flavor in pickles.

LEVELS OF A PRODUCT

The CORE product is NOT the tangible, physical product.

That's because the core product is the BENEFIT of the product that makes it valuable to you.

So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to.

Another core benefit is speed since you can travel around relatively quickly.

The ACTUAL product is the tangible, physical product.

You can get some use out of it.

Again with the car example, it is the vehicle that you test drive, buy and then collect.

The AUGMENTED product is the non-physical part of the product.

It usually consists of lots of added value, for which you may or may not pay a premium.

So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacture, and any after-sales service.

TRANSPORTATION

IT IS SAID THAT ONE OF THE MAJOR LOGISTICAL BLABBER IS THE TRANSPORTATION.

IN THE CASE OF JASHN PICKLES EXPORTING TO UAE IT IS NOT THAT DIFFICULT AS THE SEA TRANSPORT IS MUCH CHEAPER & QUICK.

OUR CONSIGNMENT WILL LEAVE FROM THE JNPT (JAWAHARLAL NEHRU PORT TRUST) IN NAVI MUMBAI TO JABEL ALI PRT IN DUBAI WHICH IS A FREE TRADE AREA.

FROM THE JABEL ALI PORT OUR CONSIGNMENT WILL GO TO THE DEALERS IN DUBAI THEN TO THE WHOLESALERS THEN TO THE RETAILERS & SUPERMARKETS OR RESTAURANTS & FROM THERE FINALLY TO THE CUSTOMER.

THE COST OF TRANSPORTATION WILL NOT BE HUGE AS THE IMPORT DUTY IN UAE IS JUST 5% & THE UAE GOVERNMENT HAVE GIVEN US CERTAIN BENEFITS AS THE TRADE RELATIONS BETWEEN THE TWO COUNTRIES IS VERY GOOD.

MARKETING MIX

FOR A COMPANY TO SUCCEED IN A GLOBAL MARKET THE 4 P'S OF MARKETING SHOULD BE VERY CLEAR.

PRODUCT

PLACE

PRICE

PROMOTION

PACKAGING

A good package for pickles should have the following attributes:

• Aroma retention

• Excellent protection against light, moisture and oxygen

• Excellent seal integrity for containment

• Grease and oil resistance

• Acid resistance

• Good aesthetics and appearance

Types of Packaging for Pickles

Traditionally, the practice was to prepare pickles at home and store in ceramic or earthenware jars.

Gradually over the years, pickles are manufactured and commercially marketed in the country, as branded products.

In our country, still large quantity of pickle is sold loose.

The shopkeeper displays various types of pickles in large glass jars, and weighs out desired quantity of pickle to his customers.

The customer trusts the shopkeeper for the quality and not the brand name.

However, gradually pickle packed in glass bottles under different brand names, appeared in the market and became popular.

The trend started in Maharashtra and Gujarat.

Glass bottled pickles are almost double in cost because of heavy packing and transportation costs.

They looked hygienic and appealed to the brand conscious upper class.

With the advent of plastics, pickles packed in HDPE (high density polyethylene) and later PET

(Polyethylene terephthalate) jars were introduced. HDPE jars are usually used for packing 1Kilogram and more.

They are opaque so do not provide visibility of the pickle, but are convenient, as they do not break in transit. The PET jars are transparent, with good eye appeal and safe for pickle. PC (polycarbonate) bottles are best for pickles but they are still very costly.

Over the last few years, cost effective flexible pouches of co-extruded and laminated structures have replaced glass jars.

The pouches could be flat pillow pouches or stand-up pouches, which have a good display value. They are light in weight and hygienic.

However, in flexible pouches, the sealant layer selection is very critical, as the contact layer needs to be acid and oil resistant.

Failure of seals or surface stickiness can render the pack ineffective and un-saleable.

Initially, the flexible packaging of pickles commenced as a simple LDPE (low density polyethylene) pouch, which neither provided protection from oxygen nor did it give an effective heat seal, as LDPE is not compatible with oil, causing failure of pouches.

Gradually multi-layered coextruded pouches and laminated pouches were introduced.

The capacity of the pouches range from 200 grams to 1 kilogram.

The pouches could be flat pillow type or stand-up pouches for shelf display.

To sum up:

• For catering / institutional packs - 5 or 6 kilograms - HDPE or PET jars. 20 kg HDPE jarsare also available and used for the purpose

• For consumers - 400/500 grams glass jars or PET jars

• For cost conscious housewives - printed pillow or stand-up pouches

• For portion packs - polystyrene or polypropylene injection moulded containers with flexible heat-sealable, peel able lids.

PRICING

THE PRICING OF A PRODUCT CAN BE BIFURCATED AS THE COST OF THE PRODUCT + THE DUTY + PROFIT MARGIN.

KEEPING THIS INTO CONSIDERATION THE PRICE OF JASHN PICKLES ARE

500 Gms - 8 dirham

250 Gms - 4.25 dirham

1kg (catering pack) - 15 dirham

Traveler pack - 50 phills

Har din ek Jashn pack - 11 dirham

PROMOTION

FOR PEOPLE TO KNOW THAT YOUR PRODUCT EXISTS IN THE MARKET YOU HAVE TO SHOW THEM THAT YOUR PRODUCR EXISTS.

WAYS OF PROMOTING A PRODUCT IS VERY COMMON BUT A SUCCESSFUL MARKETER IS THE ONE WHO DOES COMMON THINGS IN AN UNCOMMON WAY.

THIS WAS THE THOUGHT BEHIND OUR PROMOTIONAL STRATEGIES.

OUR PROMOTIONAL STRATEGIES INCLUDE THE BASIC PROMOTIONAL WAYS LIKE PRINT MEDIA, TELEVISION ADS IN UAE (CHANNEL 33) WHICH IS VERY FAMOUS IN UAE.

TIE UPS WITH KNOWLEDGE CITY IN DUBAI WHICH IS AN EDUCATION HUB TO MAKE INDIANS THERE FEEL AT HOME BY PROVIDING THEM PICKLES WITH THEIR MEALS.

THE SPECIAL VARIETY IN UAE IS ZATAR WHICH IS VERY FAMOUS IN ALL THE 7 EMIRATES ESPECIALLY IN ABU DHABI, DUBAI, & SHARJAH.

WE WOULD BE SETTING UP TASTING ZONES IN HYPERMARKETS WHERE THE CUSTOMERS CAN TASTE OUR PRODUCT & GIVE THEM THEIR FEEDBACKS.

DURING THE DUBAI SHOPPING FESTIVAL WE WOULD BE PUTTING UP A STALL TO ENCOURAGE MORE CUSTOMERS TO BUY OUR PRODUCT.

WE WILL BE HAVING THE PICKLE POT FIESTA WHICH IS AN 8 HOUR LIVE MUSIC FUNFARE. MOST PEOPLE WILL THINK IT IS NOT FEASIBLE HOW WILL WE GET FUNDS?

WE HAVE AN ANSWER TO THAT ALSO….

WE WILL BE INVITING ALL THE COMPANIES TO BUY A STALL IN OUR POT FIESTA & SRK WHO IS THE BRAMD AMBASSADOR OF JASHN PICKLES PERFORMING AT THE SHOW & THE MONEY GENERATED WILL GO IN THE BREAST CANCER RELIEF FUND.

THUS OUR PICKLE WILL BE ADVERTISED & SOCIAL RESPONSIBILITY TO AN EXTENT MIGHT ALSO BE FULFILLED.

WE HAVE ALSO TIED UP WITH A MICROSITE CALLED LANGUAGE OF FLAVORS WHICH WILL BE PUTTING UP BILLBOARDS WHICH WILL HAVE DIFFERENT WAYS OF SPELLING JASHN PICKLES. THIS WILL BE A HUGE HIT AS IT IS SOMETHING WHICH NO ONE HAS EVEDR DONE BEFORE.

FUTURE PLANS

WE ARE PLANNING TO SET UP MANUFACTURING UNIT IN JABEL ALI AS IT'S A FREE TRADE AREA.

WE WILL ALSO BE CONCENTRATING ON THE REMAINING 4 EMIRATES & FROM THERE ON TO THE OTHER GULF COUNTRIES.

AS PER THE COMPETITION, WE HAVE MAJOR COMPETITION WITH EICHER LTD, PRAVIN & BEDEKAR.

OUR NEXT PITSTOP AFTER GULF COUNTRIES WILL BE JAPAN & ITALY AS THE PICKLE INDUSTRY THERE IS NOT COMPETITIVE & THE MARKET IS HUGE.

OUR AIM OF THIS DISCUSSION OR ARGUMENT IS NOT VICTORY OVER OTHER COMPETITORS BUT IT IS JUST PROGRESS.

JASHN PICKLES

GLOBAL MARKETING STRATEGY

Name : Hasan Al Mutawa

ID : 200810728

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