Вы находитесь на странице: 1из 26


Market Entry Strategy/Launch


June 22, 2015

The beach
Some basic Facts of Indias Rice Market
Market Size

In a country where thousands of rice varieties are grown, branding has come to play a role in
both the domestic as well as the export market. The brand is the new mantra for success and
Basmati, also known as the 'king of rice', is in the middle of the action. It is the urban affluent
and the upper middle class which is gradually warming to the concept of buying branded

The packaged rice market in India was valued at INR 122 billion in 2012, and is
growing at a CAGR of over 30% for the past three years.
Growth Rate & Basmatis share in
packaged rice.

It is projected to reach INR 333 billion by 2016. Basmati rice dominates the packaged rice
market in India with a nearly 75% market share.

However, there are some other varieties present, e.g. Sona Masoori,long-grain,Patna rice,
Navarra rice, etc.

India leads globally in the production and export of Basmati rice, but this variety accounts
for less than 2% of the total Indian rice production. It is estimated that India produced
approximately 4.25 million metric tons of basmati rice which accounts for 75% of the entire
global production of this rice type.
Indias Rice Production and Area under Cultivation

ndias rice production has increased at CAGR of 3.32 percent during 2002-03 and 2013-14.

Area under rice cultivation has not increased substantially during 2002-03 and 2013-14.
Major Brands &

Brands Target Market

Aroma Fields High

Lal Qilla High

India Gate High & Mid

Kohinoor High & Mid

Daawat Mid

Tilda Mid
Major rice millers
Market insights
There are two kind of players in Basmati Market:

National Brands: their presence is strong in urban areas

Local Players who are competing by trade relationships & price discounts.

Demand Supply Scenario

There has been a steady increase in the number of national brands with many companies in
the food segment and FMCG category entering this category
Certain areas have few dominant local players which have relied mostly on their trade
relationship to push their products
The urban consumers who visit modern retailers mostly prefer branded rice
Slowly branded rice is finding acceptance in Tier 2 and 3 towns
Category Value determinants

Price (because of high level of price sensitivity)

Marketing Channels

As it is a low involvement and highly price sensitive product, channels play a significant role
in ensuring - availability and controlling the price

Considering the Segmentation and Target markets as mentioned earlier,

2-channel strategy needs to be adopted

Modern retail- includes Supermarkets, Hypermarkets and Large retailers .

Traditional channel In certain localities for easy availability to customers.

In the coming years i.e. 2nd or 3rd year

Trade margins
Trade margins play a significant role in sales as the store keepers tend to push those
products. So a higher margin in comparison to the competitors needs to be given to create
the initial push to the brand.
Marketing Communications Mix

Sales promotion- To create the initial pull towards the brand by offering short term offers

Events and Experiences- Sponsoring a Cookery show on TV grabs eyeballs which provides a
highly targeted communication .

Interactive marketing- Providing innovative recipe ideas using the brands rice through its
online channel, facebook page, blogs and engaging with its customers .

Advertising: Cost effective Localized advertising and promotional activities like In-store
promotions and visual display aides.

These activities should help achieve:

Brand name awareness measured based on recognition, recall and top of mind
Brand loyalty Segmented into non customers, price switchers, passively loyal, fence
sitters and committed and moving them to the next higher level
Improvement in Perceived quality


Going for a regional launch and then slowly moving on for a nation wide launch by
gauging the response.
Launching a few variants initially and then bringing in the other variants in a phased
manner .
High focus on the modern retail channels along with a small traditional channel to
complement it .
Trade promotions and discounts are the drivers to sale and less spending on traditional
marketing channels like TV and print .

i.e. Higher emphasis on Below the line activities over above the line as it suits the
category under consideration.
What major rice brand are doing online &
Dilnoor : Insight & Design
Facebook post
Facebook cover
Retail Outlet Board
Thank you