India is world’s 2nd largest food producers after China. India has very high ranking when it comes to food consumption. Indian food industry is very vast ranging from agro food products to the processed food industry.
India is 6th largest food and grocery market and expected to grow at 104% by 2020. Food industry in India contributes to 14% of the total GDP. The gourmet food market in India is estimated to be at US$ 1.3 billion and is growing at nearly 20%. It is expected to cross US$ 2.8 billion by the end of 2015.
The reasons behind the growth of gourmet industry are increase in disposable income, exposure to global cuisine and urbanization.
5.1.2 Ketchup Industry Analysis
Indian Ketchup industry is estimated to be for around 200 crore and
On the other hand, the production costs are also rising, forcing the companies to either reduce the tomato content or to play with the packaging.
As a result, Maggi has introduced the “Pichkoo” packs in the market. The tomato thick content in Maggi has come down from 28.1% to 26.7% while in Kissan there is reduction from 22.5% from 28%.
In India, there is still a lot of potential for growth as the rural India is still not a frequent ketchup buyer. However, in urban India ketchup has replaced the traditional Indian sauces like tamarind paste etc. The consumption of western and European food has increased in Indian youth population which along with increasing middle class income is helping the ketchup industry grow. Also, the companies are all geared up to introduce new flavors and varieties of sauces to Indian consumers such as Chili sauce, Cheese sauce, Mayonnaise and more.
5.2 Competitor Analysis
In India, currently there are few brands that have made a foothold in European gourmet food products like olives, gherkins and jalapeños etc. These brands are Neo, Tify, American Garden and Del Monte
Slight possibility of threat will be when it places its products at comparatively very low prices or it uses aggressive marketing strategy to promote its products.
3. There will be no first mover advantage for the new entrants.
5.3.4 Threat of Competitors – High
1. There is large number of existing brands catering to the same segment which leads to the high rivalry.
2. Brands like global green is enjoying the first mover advantage and are listed in prominent retail stores.
3. Few brands are enjoying economies of scale due to which they manage to provide higher margins to distributors, retailers, etc. Hence this threat hinders the market development process.
4. Many competitors like Neo, Del Monte ,Green Tokri etc. are aggressively marketing their products .They actively participate in various food n farmer’s fairs which leads to building brand awareness amongst consumers and customers. Hence preference for these brands is high as compared to Reitzel.
5.3.5 Threat of Substitute – Low
1. Threat of substitutes is high; few products like flavored baby corns can be substituted by natural baby corns which consumers can get from local market.
2. Indian consumers prefer homemade