Mahashian di hatti limited | Analysis

INTRODUCTION

Mahashian Di Hatti Limited is an INDIAN manufacturer, distributor and exporter of ground spices and spice mixtures under the brand name MDH. It specializes in several unique traditional blends of spices suitable for different recipes (Chana Masala for chickpeas, for example). The company was founded in 1919 by Mahashay Chuni Lal as a small shop in Sialkot. It has since grown in popularity all over India, and exports its products to several countries. It is associated with Mahashay Chuni Lal Charitable Trust

HISTORY

Mahashay Chuni Lal started the enterprise in Sialkot (now in Pakistan) on April 13, 1919. In a few years, the spices became very famous and they came to be known as “Deggi Mirch Wale” (the Pot Chilli People), after the name of one of their famous spice mixtures. After the partition of India, Mahashay Dharam Pal, the son of the founder, shifted to Delhi and opened up his shop at Ajmal Khan Road, Karol Bagh under the banner “Mahashian Di Hatti of Sialkot (Deggi Mirch wale)”. The name Mahashian Di Hatti means “the Shop of the Magnanimous” in Punjabi

GROWTH

The company initially relied on hand-ground spices, but has since shifted to automated machines, with a capacity of producing 30 tonnes of packaged spices in a day. There are large fully automatic manufacturing plants at Delhi, Gurgaon (Haryana), Nagpur (Rajasthan), Ghaziabad (Uttar Pradesh) and Amritsar (Punjab). It has now a network of over 1000 wholesalers and over 4 lakh retail dealers in India. It was ranked 490th among the unlisted Indian companies in 2000-01. MDH pioneered the marketing of powdered spice mixtures in handy attractive packages. It has been co-opted as member of several committees of the Bureau of Indian Standards. In the last few years, the Exports Division of the company has started exporting the spices to several countries including UK, other European countries, Canada, United States, Japan and Switzerland

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FAMOUS PRODUCTS

The MDH brand name is very well known throughout India. The products sold under the brand name include single spices (such as chili, coriander and turmeric) as well as blended spice mixtures. There are over 45 products available in over 100 different packages. The more famous ones are Chana Masala (for chickpeas), Sambar Masala (for Sambar), Kitchen King (for vegetables), Chunky Chaat Masala (for chaat), Garam Masala (“hot spice”, multi-purpose) and Chicken Masala. In addition to spices, it also manufactures incense sticks, Ayurvedic tooth powder and havan samagri, a mixture for Hindu ritual sacrifices.

PRODUCTS

We offer a wide and comprehensive range of products, which include:

• Wheat Flour
• SPECIES
• INCENSE STICKS
• AYURVEDIC

INFRASTRUCTURE

We are empowered with a state-of-the-art infrastructure, requisite technology, efficient transport facilities and superb working environment. We possess a spacious warehouse which can store large quantities of products. We are backed by a well-qualified and technical team of astute technocrats, business oriented professionals and diligent workers, who are highly experienced and have a thorough knowledge in the relevant field. The team is capable of sourcing large volumes of products to satisfy the customer demands and specifications. We possess one of Asia’s largest Wheat Flour Manufacturing Plant which is installed in our in-house production unit. We have the capacity to produce 3000 mt. Wheat Flour as per the European Standards on daily basis. Our wide network of distributors and suppliers are scattered all over the globe ensuring the customers of safe, smooth and punctual delivery of products.

BUSINESS MISSION

We will strive as a corporation,to gain trust from customers and continue to grow in strength. Make an effort on a daily basis to keep every customer satisfied,by offering every area of business, competitive products and services of superior quality thereby contributing to society.

• Having mutually satisfying interactions with customers through products
• Not being content with the present reality, continually striving for betterment and improvement, and accepting the challenge t
• Creating an environment in which each individual can apply their greatest strengths, an environment in which results will be evaluated correctly, and in these contexts, using our collective strengths to the fullest.
• Continuing to act in righteous ways, as good members of society

MARKETING OBJECTIVE

Strengthening brand name competitiveness

With consumer requirements of “tasty, safe and convenient” as a basis, detailed analytical assessment of changing consumer demand is becoming vitally important in the food industry. Hereafter, in addition to guaranteeing quality and taste, MDH will analyze market data even to the extent of product quantity and shape, in hopes of predicting forthcoming trends and reflect these in the development of new products

SITUATION ANALYSIS

Growing interest in healthy eating and convenience has set the pace for this growth. Consumers have been boosting their consumption of whole grains. At the same time, they are buying more highly processed convenience foods – like sandwiches, pizzas, and tortillas – which often contain large amounts of flour.

This situation reflects a turnaround in flour’s fortunes. . .

Types of Flour

Wheat flour is the primary grain product consumed in the United States. That’s apparent in the wide variety of food products prepared from flour: packaged flour for home baking, bakery mixes, breads, cakes, cookies, crackers, and pastas. Flour is also used in breakfast cereals, gravies, and soups. Overall, products classified in the bread and cake industry

Roller flour mills, producing wheat products like atta, maida and suji are struggling for survival, since wheat has vanished from the markets in india such as uttar Pradesh.

Many mills have closed down while others were running at less then 50 per cent of their total capacity utilisation. The total annual installed capacity of Uttar Pradesh was 40 lakh million tonne at one time.

COMPETITOR ARE;

Shakti bhog 10-15% market share

Annapurna 40% market share

Pillsbury approx 5-10%

These are the competitors of MDH aata as we see Annapurna has the leading market share as number one brand so for to compete with we use latest technology so that amount of vitamins,minerals maintains a high rate.

TECHNOLOGY

The machines used by us is of latest technology which made good quality aata which is free from moisture,humidity contains an appropriate amount of vitamins, proteins starch carbohydrates which is useful for customer. For to satisfy the customer needs we take care so that cost reduces profit increases with quality of product.

SWOT ANALYSIS

The strengths, weaknesses opportunities and threats (SWOT) analysis provides a snapshot of MDH AATA’internal strengths weaknesses and external opportunities and threats.

STRENGTHS

• 1MDH is India’s largest industry producing spices having a prestigious image in the mind of consumers.
• R&D expenditure is very high in all other existing segments as well as for its MDH aata.
• Shri Dharmpal ji the Founder of MDH is extremely knowledgeable, personally and financially dedicated to making the business a success.
• ‘ Just In Time’ Production
• Active and committed advisory council.
• Well developed distribution network.

WEAKNESSES

• Though it has considerable anecdotal information the company is lacking of marketing research.
• Internal dispute among its subsidiary companies

OPPORTUNITIES

• To capture the market share as using the latest technology..
• MDH which is new for Indian Flour industry
• Government policies like the automatic approval for FDI up to 100%
• Introduction of new products
• Online activities, online buying
• 6 .Easy availability of credit, lower interest rate and higher consumer confidence and gradual recovery witnessed in business cycle.

THREATS

• The major threat comes from rich and big competitors who dominate the Indian market.
• From companies like Annapurna having market share more than 40%

TARGET MARKET STRATEGY

As MDH producing its new product that is aata so it has to target the market where he lacks .generally branded aata is purchased in urban region not in rural area.So it our target to capture the market rural as well as urban so that we cater the needs and provide satisfication to customer along with getting market share.

And to provide the goods and services in the region where lacks so that market size increases.

VALUE CONSIOUS

Those that are looking for the ideal combination of high fuel economy and low maintenance cost in long run at an affordable price.

All three groups are likely to be exposed to the same degree of outdoor and ambient advertising. It is difficult to estimate the exact size of each group, but most buyers will be a mix of all three and not only one reason will motivate a purchase. The overall size of these groups is probably fairly small and will explain why products are not more common yet.

CAMPAIGN OBJECTIVES

Objectives are important to clarify and set an objective set of targets that ought to be achieved by the planned actions. Objectives exist on three levels; Corporate, marketing and communication.

Corporate objective can be summarized as shareholder wealth maximization and is ultimately achieved through higher profits and increased sales. Marketing objectives are the successful introduction of a Marketing communication activities are a vital part in achieving the above two and have to be Coordinated with all other company activities (production, sales, purchasing).

• Strengthening the relationship with the MDH brand.
• Increase the consideration of MDH when planning to purchase flour.
• The target market should be reached as fully as possible
• Customer and Consumers have to be made aware of a new product and its brand name.

PUBLIC RELATIONS

“The development and maintenance of good relationships with different public groups”. Public relations are useful because they enjoy a high credibility at a low cost, but the exact message cannot be controlled. This communication form will be of major importance for the MDH campaign as many buyers draw their information from the media.

Personal selling is very important because a car is a high involvement product and affords more Conviction for purchase which is given by PS. personal selling will be carried out by the local dealers who in advance should have been trained to be familiar with the MDH Atta (dealership launch material, conferences) and its advantages and how to overcome objections.

CREATIVE STRATEGY

The MDH Atta offers features that no other product offers. These unique selling points should be emphasized in the promotions and any barriers to purchase are weakened at the same time (unique selling Proposition strategy). To appeal to the target market promotions should promote the car and its users to be innovative imaginative, bold, intelligent, revolutionary and pioneering. It would make sense to create different executions to target one of the three mindsets identified in the target market and emphasizing their reasons to buy and refute their individual barriers to buy.

MARKETING MIX

PRODUCT

As product is sum total of tangible and intangible attributes including productdesign, style,size, quality, colour,brand name ,labeling etc. So we produce the product in such a way which has all the qualities so that customer takes the proper benefit.

Here in case of aata we produce it in such a way so that it carry all the features of good product..

PLACE/DISTRIBUTION

Place is the distribution mix. It is concerned with the smooth flow of goodsandservices from the producer to consumer by creating time, place and possession utility. It signifies two things namely physical distribution and the channels of distribution.It also includes transportation, warehousing, inventory control,wholeselling etc.

So we create the utility in such a way so that there is proper distribution of goods..

PRICE

Price is the value of a product expressed in terms of money.It is a matter of vital importance to the buyer or seller.Exchange of goods and services takes place when buyer is willing to purchase at the proper price. As in case of this aata we set the price in such a way so that it will low then the competitor price and it is of better quality. We set the price in such a way so that their will be proper profit margin, considering the terms of credit and other policies.

PROMOTION

SALES PROMOTION

Monetary incentives to buy, is most effective to trigger a decision or purchase. SP is useful at the beginning of the product life cycle to increase acceptance or provoke a trial. MDH is selling the aata beneath its production cost. However an additional third party sales promotion mechanism has been put into place: Power shift, a government backed agency, To get the biggest benefit out of this MDH should advertise this fact. Otherwise SP should be used spontaneously once a slowdown in sales can be detected (PLC).

ADVERTISING

a paid form of non-personal mass communication from an identified sponsor, should be the major communication mix ingredient for this campaign. Advertising is controllable, but expensive esp. TV. Advertising can be used to increase awareness, create interest and inform about MDH AATA USPs. Customers or consumer are reached by placing adverts in their target media. Direct mail in the form of newsletters can useful for this campaign to create awareness (pre launch) and inform or offer of opportunity to book a test drive. MDH has already a database in place but can also buy further data. Direct mail is also important when targeting the corporate buyers and provides them with detailed information about the MDH.

PACKAGING

‘Packaging’ is supposed to be the fifth “P” in marketing. After product, price, place and promotion, packaging is the element which holds the maximum importance in the marketing of a product. As majority of the purchase decisions are made in store, we ensure that our products are attractively packed so as to capture the attention of the buyers. Our products are packaged in different quantities depending upon the different segment and market.

MARKETING RESEARCH

Good marketer wants insight to help them interpret past performance as well as plan future activities. They need timely, accurate and actionable information about consumer’s competition and their brands .they also need to make the best possible tactical decisions in the long run. Discovering a consumer insight and understanding its marketing implication can often lead to a successful product launch or spur the growth of the brand. MDHis doing extensive marketing research to understand consumer’s preferences and also the competitor’s strategies. It has a separate R&D department which conducts online as well as offline surveys to know what consumers think about its offerings and what are their feedbacks

The financial objective is to be financially solvent within the first two years of operation. The various expenditure on various operational activities are as follow- Online advertising; button and banner advertising on automotive websites and on online sites of target media –

Rs 1, 000, 000

Direct

Mail news

Letter

Rs 500000

TV short Rs 3,00000

Print Rs 3, 00000

Outdoor RS 1, 00000

Sponsorship of MDH target group relevant events, celebrity Endorsement Sales Promotion, to be

Confirmed Rs 20000000

Other:

Promotions

Sales

Promotion

Personal

Dealer activity absorbed in

Overheads

Testing end of campaign

Evaluation

Rs 20000000

First year total: Rs 4,00000000.Second year total: Rs 3,00000000 .Third year total; Rs 2,000,00000

Considering the small target group of the MDH and the small projected sales figures a budget of Rs 9million over three years seems appropriate, however I would recommend reallocating the budget. That way the launch period communications can be intensified. Three years are also likely to correspond to the Product of this since car manufacturer have increased their output to keep demand high.

ORGANSATIONAL STRUCTURE AND PLAN

As well established company Reliance currently has many members on its staffs. However its automobile section is new. As this section matures into a stable and profitable organization the need for employees will grow. The first forseeable employee need is in the area of sales. The plan is to hire salespersons in early 2009 to allow Mr. Dharmpal ji to continue his consulting on a regular basis ,while at the same time ensuring a steady supply of for continued development efforts. To obtain the financial flexibility needed to manage its cash flow successfully the company has made contractors a significant component of its workforce

SALES OBJECTIVE

Sales of Rs 350,000,0 by the end of 2009,sales of Rs 1 million by the year 2011 and by the year 2013 sales of Rs 3 billion

SUMMARY

The recommended marketing and communications strategy that makes use of advertising, PR, new media and direct mail. Personal selling will be provided by the existing network of local dealers. Advertising will use TV, Print and outdoor media to initiate purchases. The Internet will play an important role for both advertising and direct mail, using a modern medium to underline the advanced character of this aata. However that this plan so far is only a model/ plan, and not definitive, it can and is likely to change esp. if pre or post-testing give negative results. Before realizing the proposed action a long planning period with frequent meetings of all parties is necessary to ensure the integrity and unanimous messages of the campaign.

REFRENCES

• Financial Times 1999 – 2001. Various issues.
• Key Note. 2002. The Green & Ethical Consumer. Market Assessment.
• Varey, Richard. 2002. Marketing Communication. London: Routledge.
• 4. Pickton, David and Broderick, Amanda. 2001. Integrated Marketing Communications. Harlow:Prentice Hall
• 5. Fitzgerald, Maureen and Arnott, David. 2000. Marketing Communications Classics. London: Business Press, Thomson Learning
• Westwood, John. 1990. The Marketing Plan. London: Kogan Page Limited.