3. BACKGROUND:
Green tea is one of the fastest growing segments of global tea industry. It is
prepared from the leaves from Camellia sinensis that have undergone
minimal oxidation during processes.
Generally, people take green tea due to its health benefit purpose. The concept
of green tea was originated from China and later spread all over the world.
Some of the categories in which green tea are offered in the market are green
tea bags, iced green tea and green tea instant mixes. It is offered in various
flavors including aloe vera, lemon, vanilla, cinnamon, wild berry, jasmine and
also lemongrass. Due to its medicinal and antioxidant properties, it is used in
curing and preventing of many disease such as cancer, diabetes, tooth decay,
heart disease and maintaining proper cholesterol and blood level in the body.
4. Regular intake of green tea helps in reducing the overweight of
body. According to the World Health Organization (WHO), the
overweight population is expected to reach 1.5 billion by 2015 and
growing healthcare costs in the U.S. alone expected to cross $117
billion; all this is creating major opportunities for the growth in
sale of weight management products such as green tea. Rising
consumer awareness about benefit of green tea in curing of
various diseases further triggers the global market of green tea.
Asia Pacific contributes the largest market of green tea in the
world. Countries like Hong Kong, Taiwan, Japan, India and
China are growing market of green tea in Asia Pacific reason.
Rising population and healthcare awareness is further expected
to boost the green tea market in Asia Pacific. Europe is the
fastest growing market for green tea industry.
Some of the famous green tea in India are Tetley, Organic India,
Twinings, Typhoo, Chamong, etc.
5. COMPANY PROFILE
The Sui Generis Inc. bearing Regd. No. 27 of 2006-07
under the IP Act 1932 is incorporated under the law of
the state of Manipur. The firm is one of the pioneers in
starting a Green Industrial Revolution in the state where
the main aim is to restore the present economic condition
which is prevailing in the state by utilizing the already
available resources and manufacture world class
products. We aim for long term growth not just for us, but
for Manipur and the world. Besides this, the firm is
creating avenues to provide opportunity for the
unemployed youths who are stranded and lost in the
present economical war. As we are a manufacturing firm,
we now have a product line called the sui generis CC
Tea, which is accepted widely in the market worldwide.
6. The Sui Generis Inc. is manufacturing, developing and
delivering products that are developed under strict
Research & Development in collaboration with world
class laboratories viz. FICCI Research and Analysis
Center, New Delhi, NAFA Research Institute, Pune,
etc.
9. Our first product line, The Sui Generis
CC Tea has three varieties Le.
10. New package
CC Tea – 100gms
Granules
CC Tea – 25 Enveloped
Biodegradable Tea Bags
11. PRODUCT DESCRIPTION
NATURE AND PROCESS OF THE PROJECT
The firm has promoted Cymbopogon citratus plantation
in 250 acres, and is in the process of expanding another
500 acres in various areas of Manipur. Once the
plantation is accomplished, the first harvesting shall be
done in the 4th month and thereafter every 3-4 months
for 6 to 10 years depending on the fertility of the soil.
The average yield of fresh Cymbopogon citratus leafs per
Hectare is 48,000 kilograms in three times harvest in a
year. The fresh leafs are thus harvested and transported
to the industrial site for processing.
13. PRODUCTION DETAILS:
For the year 2014
Green CC Leaves - 12500 tons
harvested
CC Tea Granules - 98730 units
CC Tea Bags - 7150 units
For the year 2015(estimated)
Green CC Leaves - 30000 tons
CC Tea Granules - 150000 units
CC Tea Bags - 20000 units
16. This is a medicinal green tea which has change the
drinking habits of the users considering the
improvement in their health and now it has got a huge
demand in the market worldwide. Considering
the demand we are more concerned with the quality of
the product and customers satisfaction. The Firm is
focusing to promote more high quality product lines
and introduce a service sector industry for the
betterment towards the society with the aim of giving
employment to the stranded youths.
17. THE PARTNERS
Mr. Ragesh Keisham (CMD) - Managing Partner
Aged about 37 years, Ragesh Keisham is an Executive MBA and is an experienced and
innovative professional with sophisticated sales, public relation and business administration
skills. He is a highly articulate, confident and persuasive team-builder, able to motivate and
communicate to achieve exceptional business performance. He is dependable and reliable in
supporting and enabling team effort to produce genuine long-term sustainable development.
He has over 5 years proven expertise in Cymbopogon citratus plantation and CC Tea/ Oil
processing. He has a background in a wide range of organizations including plantation and
business process control. He has been a business advisor and consultant for an array of
organizations both in and outside the state. He is the Managing Partner of The Sui-Generis
Inc. guiding the Firm for growth and expansion.
Mr. Nongmaithem Chalamba (CEO) - Partner
Aged about 31 years and status single, his main priority is to excel the firm to the maximum
level. Graduate in Political Science as well as Tourism Studies with a Management Training he
is well suited with the promotion and development of a new business. A can-do attitude,
entrepreneurial, good communication skills, influential quality, good contact network, etc.
are his personality which proof positive.
Mr. Thokchom. Ranjan Singh (COO) - Partner
Mr. Thokchom Ranjan Singh aged about 29, is a science graduate and law graduate. He will
be a part of the team working on the expansion of the company's network. He comes to Sui
Generis with an experience since the beginning of CC Tea. His wide experience in the industry
and understanding human resource helps the company in becoming a truly and highly
efficient service sector of the industry.
18. NATURE AND PROCESS OF
THE COMPANY
The firm has promoted Cymbopogon citratus
plantation in 18 Hectares, and is in the process of
expanding another 45 Hectares in various areas of
Manipur. Once the plantation is accomplished, the
first harvesting shall be done in the 4th month and
thereafter every 3 months for 5 to 10 years depending
on the fertility of the soil. The average yield of fresh
Cymbopogon citratus leafs per Hectare is 48,000
kilograms in three time harvest in a year. The fresh
leafs are thus harvested and transported to the
industrial site for processing.
19. Production Process of CC Tea:
The fresh matured leaves shall be harvested from the farm and is carried to the factory.
Once the leaves reached the factory, the healthy leaves shall be separated by the female
workers and cleaned using our three stage cleaning process.
Then the cleaned leaves are stacked properly into the racks to seep down the water and
also to take out the preliminary moisture under diffused sunlight sheds.
Then the leaves are send to the to the indirect air ventilating dryer for proper drying.
Once the leaves are dried accordingly, it is send to the cutting department to cut the
dried leaves for packing granules and grinded for packing tea bags.
Then the cut and grinded leaves are sent to the packing department for packing 200
grams of granules and 100 tea bags for one packet respectively.
The packet products are now ready for market.
Marketing of our product is managed and done by 6 marketing agencies namely:-
K.S. Distribution
Humang Mai Links
DRR Traders
Good Will Marketing
Venture Marketing
Excel Maker
20. ABOUT CC TEA
CC Tea as the name suggest, is manufactured from a
unique grass called "Cybopogon citratus". This grass which
is commonly called lemon grass, and is one of the 55
species of lemon grass. Among all the other lemon grass
species, Cypobogon citratus has got the optimum
medicinal value. So, we at the Sui Generis Inc. strongly
believe that it would be unwise to term Cybopogon citratus
under its common name because of its stand out properties
from the rest of lemon grass species
Sui Generis CC Tea has a very distinct yet appeasing lemony
taste. Drinking CC tea is a good way to get the soothing
benefits of this herb on a regular basis. CC Tea helps many
in relieving from their health ailments.
21.
22. BENEFITS:
Helps relieve constipation.
Helps with poor digestion, stomach aches, gas, bowel spasms and
diarrhea.
A mild sedative and can calm nerves. Helps in keeping the eyes
and skin health} and reduce hair-fall.
Helps relieve menstruation problems and nausea.
Promotes perspiration and lower fever or cool the body in high
temperatures.
Helps to get rid of toxins and excess fats in the body.
Helps improve liver function and lower uric acid level.
Helps lower high blood pressure and cholesterol levels.
An ancient remedy for curing chest congestion, colds and coughs.
23. CURRENT MARKET
SCENARIO
CC Tea is now accepted in the market not only in Manipur
and other metropolitan cities of India but also in the
European Union, America, UAE and some Southeast Asian
countries. The taste of CC Tea has been described as fine
and delicious. Started with only 200 products per month,
the monthly production of cc tea has now reached the
humble 25000 granules and 6250 tea bags in average by
leaps and bounds .CC tea is a market driven product where
the ever increasing demand has forced and motivated us to
go for the kill. Until now the loud voice of demand never
loses its inertia. Instead it just speeds up in such a way that
it can only be seen but hard to catch. But the undying spirit
of the Sui Generis Inc. is trying to catch up the ever
increasing demand by following a major expansion plan.
24. MARKET POTENTIAL
Once a cup of white or black tea was enough to drown the nation's sorrows,
but a new research by Global Industry Analysts Inc. reports a gradual decline
of this conventional and a steep increase in other alternative varieties.
Between 2009-2012 fruit and herbal tea marks and increase by 10% while
specialty tea and decaffeinated tea grew by 8% and 16% respectively. But it
is a green flavored tea which is the real star performer of the home tea sector
as the sales grew a sensational 83%. China is the largest producer of green
tea World Wide and is also the leading exporter of green tea while Morocco
is the leading importer. India also is showing a notable increase in the green
tea market but Europe represents the fastest growing market for green tea,
propelled by growing preference towards natural ingredients, increased
media attention and rising health consciousness. Today, as many as 12% of
Europeans drink green tea. Coming to the Indian context, green tea accounts
for about 5% of the total tea market in India, and its growing at 50% annually.
The green tea market in India is presently valued at INR 500 crores and the
segment is expected to grow 4 times over the next few years, say trade
analysts.
25. According to the new report by Global Industry Analyst Inc.,
the global market for green tea will exceed 1.2 million tons by
2015, which is valued at INR 84,000 crores. Growing health
consciousness, coupled with increasing consumer awareness
about the medicinal benefits of green tea, increasing incidence
of obesity, are some of the factors driving green tea market.
We at the Sui Generis Inc. believes that CC Tea will definitely
be a major player in the green tea segment because of its
sublime green color, the appeasing lemon aroma, the proven
health benefits and its taste which has been described by the
users as fine and delicious. Taking full opportunity of this
present trend, the Sui Generis Inc. shall definitely mark a dent
in the global green tea market. Small it may be but the Sui
Generis Inc. will never the less create a dent of 1% of the
green tea market in the next 5 years. This would mean annual
revenue of INR 840 crores 1600 hectares of plantation on
unused land. And last but not the least employment for a
whopping 21000 people.
28. ACHIEVEMENTS:
The Telegraph Infocom – SME Award 2014 by Reliance
Commercial Finance for Most Innovative SME Award.
NICT 2014 – The Telegraph Perfect 10 Awards for
exceptional vision, innovative ideas, and sustainable
solutions for the growth and development of the North
Eastern region of India.
North East Regional Award 2012 for Outstanding
Contributions to the Development of Northeast.
29. REASON FOR DEVELOPING THIS
COMPANY
Improving the standard of living & bringing smiles to people
lives.
Contributing to industries & economic growth of Manipur.
Promoting Manipur, its culture& heritage globally.
To identify and promote products that are unique to Manipur.
To create and implement initiatives at the grass root level.
To develop industries that provide inclusive growth and
generate gainful employment.
30. FUNDAMENTAL
DISTRIBUTION CHANNEL
Distribution channels are composed of marketing
intermediaries, the persons or firms that operate between
the producer and the consumer or industrial user. The two
main categories of marketing intermediaries are
wholesalers and retailers. Wholesaling intermediaries are
people and firms that sell primarily to retailers and other
wholesalers or industrial users. They do not sell significant
amounts to ultimate consumers. Retailers, by contrast, are
persons or firms that sell goods and services to individuals
for their own use rather than for resale. Retailers are the
marketing intermediaries that consumers are most familiar
with. The typical consumer buys food, clothing, personal-
care items, furniture, and appliances from retailer.
31. SCOPE OF GROWTH &
EXPANSION
Seeing the present market and demand for CC Tea, the scope
of expansion and growth in this industry can never be
undermined. A plantation of 1600 hectares would mean an
annual revenue of INR 840 crores and 21,000 employments,
but this is only 1% of the existing green tea market.
The existing area under cultivation of different crops in
Manipur is 2, 85,000 hectares as against the available
potential area of 3, 25,500 hectares of good fertile land. This
means we have got around 40,500 hectares of very good
fertile land for cultivation of Cymbopogon citratus. And above
this, there are more than four lakh unemployed youths in the
live register of the Employment Exchange and more than 2.5
lakhs are educated youths who are matriculates and above.
There is therefore, adequate manpower for absorption in our
venture.
33. FUNDAMENTAL
DISTRIBUTION CHANNEL Distribution channels are composed of marketing
intermediaries, the persons or firms that operate between
the producer and the consumer or industrial user. The two
main categories of marketing intermediaries are
wholesalers and retailers. Wholesaling intermediaries are
people and firms that sell primarily to retailers and other
wholesalers or industrial users. They do not sell significant
amounts to ultimate consumers. Retailers, by contrast, are
persons or firms that sell goods and services to individuals
for their own use rather than for resale. Retailers are the
marketing intermediaries that consumers are most familiar
with. The typical consumer buys food, clothing, personal-
care items, furniture, and appliances from retailer.
34. The Functions of Marketing
Intermediaries
Marketing intermediaries perform various functions
that assist in the operation of the distribution channel.
These functions include buying, selling, storing, and
transporting. Some intermediaries also sort and grade
bulk products. Wholesalers of fresh produce, for
example, receive bulk shipments of fruits and
vegetables from growers; sort the produce according to
a standardized grade, size, color, and degree of
ripeness; and then repack it in smaller quantities for
their customers, grocery stores, and restaurants.
36. Channel to Consumer
Products Producer to Consumer. A direct channel from producer to consumer is used
for most services but relatively few products. An artist who sells their creations
at an art show is an example of this distribution channel. Other users include
Avon, Amway, Fuller Brush, Electrolux, Kirby, some encyclopedia publishers,
and farmer roadside stands.
Producer to Retailer to Consumer. Some food processors and manufacturers
distribute their products directly to retailers. The apparel industry has many
producers that sell directly to retailers through their own sales forces. Some
manufacturers set up retail outlets in order to maintain better control over
their channels. Agricultural processors, like S & W canned foods, Diamond
Walnuts sell directly to retailers through their sales staff.
Producer to Wholesaler to Retailer to Consumer. The traditional channel
for consumer goods, distribution to wholesalers, is used by thousands of small
manufacturers that cannot afford to maintain an extensive field sales force to
reach the retailing sector. Some of these manufacturers employ technical
advisors to assist retailers and to secure marketing information, but they are
not directly involved in the selling effort.
37. Producer to Wholesaler to Wholesaler to Retailer to
Consumer. Several wholesalers are common in the distribution
of agricultural (canned and frozen foods and cotton) and
petroleum products (gasoline). An extra wholesaling level is
required to divide, sort, and distribute bulky items.
Producer to Industrial User. The direct channel from producer
to user is the most common approach to distributing industrial
goods and services. FMC corporation selling conveying
equipment to a factory. This channel is used for nearly all
industrial products except accessory equipment and operating
supplies.
Producer to Wholesaler to Industrial User. The indirect
channel from producer to wholesaler to user is used for some
industrial items. It is also used for small accessory equipment
and operating supplies that are produced in large lots but sold in
small quantities. John Deere, Ford and Case tractors sell to
wholesalers who in turn sell to industrial users.
38. IMPORTANCE OF
DISTRIBUTION CHANNELS A variety of distribution channels exists, as well as the
contemporary understanding of managing supply chains and
value creation networks. The importance of distribution
channels is analyzed both for individual economic operators, i.e.
groups and for the aggregate national economy. These types of
analyses start with the share of big firms and groups, both on
national and international levels. This is the case of relationships
between different economic operators within value creation
chains. This is why earlier concepts of the role and importance of
commerce in national economy are losing their importance. The
purpose of this paper is to point out various controversial
concepts of economic structure and the possibilities of economic
systems of certain countries. Moreover, the authors have tried to
indicate certain solutions in creating new forms of distribution
channels and retail business units in certain national economies.
39. Channels of Distribution-brief
information:
Beyond the products that form the essential purpose of distribution channels,
other important assets move through. Below is some of what distribution
channels move.
Product
Information- Members of well-managed marketing channels share much
information with each other. Most often the information relates directly to the
goods being exchanged, but information about customers, competitors,
suppliers, etc. are also routinely shared in distribution channels.
Money- The products that move through channels must be paid for.
Promotional efforts and activities- The exchanges that move the goods to
the final
consumer often result from intense promotional activities at all levels.
Consumers may
buy the product on sale or with a coupon or as a result of seeing or reading
about the
product in advertising. Manufacturers may also provide promotional
information and
incentives to retailers to carry the product.
40. Needs for distribution channel
Because each stage of the marketing channel must profit
from exchange, it would seem logical to conclude that
consumers would be better off buying directly from
producers and bypassing as many channel levels as
possible. For some products, this is true; so-called "direct
channels serve the consumer well. But for most products,
such is not the case. Consider what distribution channels do
to save consumers their resources.
Selecting a Distribution Channel
The selection of a distribution channel depends on several
factors: the market, the product, the producer, and the
competition. These factors are often interrelated.
41. Market Factors;
The most important consideration in choosing a
distribution channel is that market segment the
producer wants to reach. Changes in consumer buying
behavior may influence a channel decision. For
example, an increasing number of service firms are
satisfying consumers' desire for convenience by
providing home delivery.
42. Product Factors:
In general, products those are complex, expensive,
custom made and perishable move through shorter
distribution channels. Boeing sells its747 jet aircraft
directly to British Airways and other commercial
airlines. Each of the $100 million aircraft brings in
about $25 million in gross profits. 2 In expensive and
standardized products are typically sold through
longer channels.
43. Producer Factors:
Producers that offer a broad product line and have the
financial and marketing resources to distribute and promote
their products are more likely to use a shorter channel of
distribution. American Greetings Corporation, for example,
bypasses wholesaling intermediaries and sells directly to
some 90,000 retail outlets worldwide. American Greetings
produces 6 million greeting cards each day while also
marketing gift wrap and ribbon, party goods, candles,
stationery, calendars, and gift items. The company has the
financial resources to conduct marketing research studies and
to maintain its own network of distribution centers. In addition
to a large sales force, American Greetings employs 12,000
part-time merchandisers who service retail customers on a
weekly basis.
44. Competitive Factors:
In choosing a distribution channel, producers must consider how well
an intermediary performs the marketing functions. A producer may
become less competitive when an intermediary fails to adequately
promote the firm's products. Campbell Soup Company revised its
distribution channel in Japan for its Pepperidge Farm cookies
because it was dissatisfied with the marketing efforts of its Japanese
importer and local distributors. Cookie sales were low because the
Japanese distributors did not aggressively seek new retail outlets or
adequately promote the cookies. Even worse, the cookies suffered
from a poor image. Consumers complained that the cookies were
often stale, a problem resulting from products being stored too long
in warehouses. To increase the sales of its cookies, Campbell
marketers severed their relationship with the Japanese importer and
distributors. Instead, they shortened the channel by selling their
cookies directly to a retailer, 7-Eleven Japan, which operates 3,300
outlets in Japan. The new channel not only gives Pepperidge Farm
wider exposure, but it also speeds up product delivery so Japanese
consumers are assured of buying fresh cookies.
45. The Marketing Concept
In 1951, vice president of marketing at Pillsbury named Robert
Keith introduced a seminal marketing principle to the business
world: the marketing concept. According to the marketing
concept, the customer is the nucleus of all marketing mix
decisions. As such, organizations should only make what they
can market instead of trying to market what they have made.
The marketing concept is intuitively appealing because its
focus is on the customer. In this sense, however, the
marketing concept paints a very one-sided approach to
reconciling a firm's mission with the markets it serves because
it positions marketers as reactive exchange partners -
adapting channels of distribution to meet market needs.
46. Factors influencing selection of
Distribution Channel in International
Marketing
Nature of Product: This is the first and most important consideration. Product
features, size, shape, color, durability, perish ability, Value of product etc. are the
factors
that constitute the product characteristics. Perishable items need strong packaging
and
shorter channel whereas items with long life can have longer channels. Size and
handling also affects the channel. Odd sizes, difficult handlings are often found to
have
shorter channel. Industrial machinery, that requires particular customer preference are
often sold through direct channels.
Customer Characteristics: If the product has got huge customer base and are
geographically dispersed, buying product in small quantities requires longer channels.
This is because producer needs to have wide network of retailers and wholesalers to
make the product easily accessible in the local market. For e.g. product like Pepsi
needs
a longer channel. Unlike above, industrial products, where customers have
preferences
regarding the technology and the functions to be incorporated needs shorter channel,
because the product is needed to be adjusted according to customer preference.
Nature of Market: The location and the coverage of the market also determine the
channel selection. If the market is dense, spread across in length and breath, requires
longer channel. Whereas if the product has niche market, the channel can be short.
47. Cost Consideration: The cost of maintaining the channel is also a key
consideration.
Every producer would like to have shorted channel, may be direct channel, but
its cost.
Now this cost has to be compared with the benefits derived. Longer channel,
with high
number of middleman also tend to raise the price of the product, because every
middleman, looks for his share and wants a larger share.
Time: Time taken by the channel to make the product available to the
consumer, is
one other factor. Longer channel are often found to take shorter time. This is
because the
middlemen are well versed with the market and are efficient in distribution of
product.
Keeping a channel short means that the customers have to first look for
distributor and
place his orders.
Competition: Manufacturers are often found to use the same channel of
distribution
as the competitors are using. If one deviates, other plan for the same. Longer,
indirect channels are to be used if the competition is intense, however shorter
channel can be used, if competition is less. For e.g. Industrial product, where
the competition is less uses more direct and shorter channel than the FMCG
products where the competition is more.
48. Availability of Middleman: Availability of middleman in foreign nations is one
other factor to be considered, especially for industrial product, or product with high end
specification. Product which are customer oriented, which are brought regularly, may be
every day, which is a necessity can use longer channel, as middleman are very easily
available. However product with specific technology, industrial equipment, middlemen
are not easy to come by. Even middleman needs to be trained with the product feature
thereby marketing the same in their local markets.
Technological Factors: The technology component of the product also affects the
channel selection. Products which are not technology oriented can have longer channels
are product Is not needed to be explain to the customers. However, if the product is
highly technical, requires a shorter direct channel, as it functioning is to be explained to
the consumers.
Consumption Pattern: Consumption pattern is also a factor to be considered before
designing the channel. If the product is consumed regularly, may be periodic, then such
products should longer channels, as consumers would like such product to be easily
accessible. People will not like to make great research and run around for such product,
and will buy anything which is easily available.
Other Factors: To end with, there are some other factors like infrastructure in the
foreign nation, political environment, legal regulations, social attitude, culture, values
etc. that may affect the selection of the particular channel.
49. FUNCTIONS OF THE
CHANNEL
The primary purpose of any channel of distribution is to bridge the.gap between the
producer of a product and the user of it, whether the parties are located in the same
community or in different countries thousands of miles apart. The channel is composed
of different institutions that facilitate the transaction and the physical exchange.
Institutions in channels fall into three categories:
The producer of the product-a craftsman, manufacturer, farmer, or other extractive
industry producer;
The user of the product-an individual, household, business buyer, institution, or
government; and
Certain middlemen a. the wholesale and/or retail level.
Not all channel members perform the same function Heskett2 suggests that a channel
performs three important functions:
Transactional junctions-buying, selling, and risk assumption.
Logistical junctions-assembly, storage, sorting, and transportation.
Facilitating junctions-post-purchase service and maintenance, financing, information
dissemination, and channel coordination or leadership.
These functions are necessary for the effective flow of product and title to the
customer and payment back to the producer. Certain characteristics are implied
in every channel.
50. Innovative Distribution Channel
Strategy
Joint distribution
This strategy aims at bringing traditional food manufacturers together which
work in different food sectors on complementary products in order to share
their limited financial resources for collaboration on joint transportation and
renting an outlet in which their products can be sold to the consumers.
Joint promotion
The aim of this strategy is to increase the low level of consumer awareness and
to overcome the constraints of limited resources for promotion at the level of
traditional food manufacturers. An idea for implementation is the set-up of an
umbrella brand for traditional food products, e.g. on regional or product type
level.
Agro tourism
The aim of this strategy is to show the manufacturing place of a traditional
food regularly as a tourist sight of a certain region to tourists making
excursions in the region/place. Furthermore, in the frame of a guided or non-
guided tour, e.g. organized by a special travel agency, direct sale in-place is a
possibility.
51. All-in-one packaging
The aim of this strategy is to develop, manufacture and sell a convenience
traditional food product taking into account the consumer's expectations, such
as long shelf life, convenience aspects, appearance of the already packed
product etc. This traditional food product would be part of a whole package
which includes all necessary ingredients for e.g. preparing a traditional meal.
There are special target consumer groups consisting of several people, e.g.:
families or traditional party participants. For this strategy the application of a
special technology and the right choice of the most suitable package size are
very important. Furthermore, it is aimed to improve the knowledge of the
consumers about the traditional food products and to widen the product
assortment of traditional food products.
Regional corner
Regional corners will be a temporary or permanent display featuring a range of
traditional food products of a given territory. This display can be either inside a
traditional point of sale or inside a super/hypermarket. The aim is to increase
the visibility and sales in distribution channels of traditional food products of a
given region or territory.
52. Ecommerce B2B&B2C
The aim of this strategy is to create a virtual store as a key distribution channel
to feature and sell different traditional food products belonging to several
producers of a given territory or a group of territories. This strategy is meant as
a less costly alternative to the obstacles of high costs and complexities for
setting up a traditional store and for reaching consumers potential (new)
consumers located in different geographical areas. Furthermore, proper
communication to the consumers is aimed about the characteristics of the
traditional food products, the quality certifications (if available) and the proper
way of usage that will enhance product taste and justify the price premium.
Further, the usage of an appropriate IT-platform will enable to integrate both
virtual and traditional channel management with only one tool in order to
optimize distribution and logistics.
Fast food chains
The objective of the strategy fast food chains of traditional food products is
that it would be desirable to associate the experience of eating traditional food
products with the "'mass markef'-logic of fast food eating. This could be in
principle achieved by extending certain opportunities of the so called fast food
chains to products that are different from those normally distributed and
consumed in usual fast food restaurants. There are existing examples such as
"Nordsee" where a successful combination is achieved (fresh fish products for to
go, but also prepared as full meals for immediate in-house consumption)
53. Small area territorial penetration
The aim of this strategy is to reach a critical mass of repetitions of messages
across different media and with a large presence in distribution channels to
reap the abrupt and strong answer of the consumer to an intensive campaign.
Taking into account the high budget necessary for campaigns at national level it
is the idea to drastically reduce the area covered by the distribution chain and
advertising campaign to manageable dimensions while keeping the intensity of
the campaign very high.
Specialty shops
The aim of this strategy is the (re)establishment of specialty shops in order to
increase the market share and to better valorize the traditional food products.
Furthermore, traditional food manufacturers often do not have the capacity to
sell via large distribution channels; therefore an adjustment of the distribution
channel to the characteristics and features of traditional food products is
necessary.
Involvement of consumer
The aim of this strategy is to increase consumer's loyalty and trust in traditional
food products resulting in improved publicity and word-of-mouth advertising.
Therefore the consumer will be (to some extend) involved in the production
process, being e.g. a one-day-entrepreneur. Finally, this should lead to an
improved market share of traditional food products and increased revenues of
the members of the traditional food chain.
54. Network facilities
The aim of this strategy is to bring together potential
business partners as well as to provide a platform for
exchanging information among the business partners. This
should lead to the improvement of product or regional
features, e.g. through higher product quality and safety,
assured supply, wider product range or better
differentiation.
Moving outlet
The aim of this strategy is to install moving outlets
(wagons) to reach areas where the establishment of
stationary outlets is not applicable and/or not profitable.
Also seasonality is considered as an important factor on
revenues, which could be bypassed by this strategy.
55. CHANNELS OF MARKETING
THE PRODUCT:
MARKET CAMPAIGN:
National media campaign
Online &print promotion
Health & wellness awareness campaign
Highlight Manipur & its rich heritage
SALES CAMPAIGN:
Area distribution partners
Retail Presence Pan India
Modern Retail Chain Association
Online & Institutional sales
LOGISTICS
Cargo services
Courier
56. CONCLUSION
Peter Drucker said, "The greatest change will be in
distribution channels, not in new methods of production or
consumption" Choosing the right channels, convincing them to
carry your merchandise, and getting them to work as partners, is a
major challenge. Too many companies see themselves as selling to
distributors, instead of selling through them.
A company must not only develop and operate efficient marketing
channels but be prepared to add new ones and drop failing ones.
Distribution channels are dynamic. They can create a competitive
advantage when used right, but become a competitive liability
when used poorly.
Hence, the current distribution channel of Sui Generis Inc.. should
be revamped for an optimal performance and there is a lot of scope
for improvement in the future, as emphasized on the innovative
distribution strategies, in the study.
