CHAPTER 1: INTRODUCTION

I.

OBJECTIVE OF THE STUDY

a.
b.
c.
d.

II.

To find out which is the most selling brand of spices in Lucknow region.
To know the reason behind the high sale.
To find out the advertisement impact on consumers.
To check the brand recall.

CONTEXT OF THE STUDY

Study talks about the two famous Indian Spices brands; MDH and EVEREST. Survey for both
retailers and consumers in order to know the brand preference and the reason behind it. Also how
advertising plays a vital role behind the success of the brand.

III.

SAMPLING METHODOLOGY
a. Target Population:

i. Retailers selling Indian spice brands.

ii. Household females.
a. Sampling Method:
Non Probability Sampling Method; A core characteristics of non-probability sampling techniques
is that samples are selected based on the subjective judgment of the researcher, rather than
random selection. Purposive Method
b. Sample Size:
i. 30 respondents for retail shop survey.
ii. 30 respondents for consumer survey.

IV.

DATA COLLECTION METHOD

a. Primary Data: questionnaires

b. Secondary Data: internet
c. Research Area; Lucknow city.

CHAPTER 2: LITERATURE REVIEW

RESEARCH PAPER: A Study of Consumer Decision Making While Purchasing
Branded Spices in and around Karad City
BY: *M.M. Kumthekar and **A. R. Sane
Abstract
Today, Indian marketers are focusing on rural markets for various reasons, the foremost being
that it represents a large untapped market. For any marketer, the key to success in these markets
is to understand the psyche of rural consumers which is characteristic and not similar to the
urban market. Therefore, the consumer, the most critical component in the marketing scenario,
needs to be studied in depth. The present study is an attempt to identify the consumer psyche in
buying spices and identifying the consumer preference towards branded spices in Karad -a semi
urban city in district Satara in Maharashtra and the areas around it which represent the rural
areas. It also attempts to study the buying behavior demonstrated by rural consumers and identify
the most popular branded spices in and around Karad city.

CHAPTER 3: RESEARCH FINDINGS

INTRODUCTION

INTRODUCTION TO MDH

Parent Company

Mahashian Di Hatti

Category

Food processing and products

Sector

Foods and Beverages

Tagline/ Slogan

Asli Masaale Sach Sach MDH

USP

Unique traditional blends of spices

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. [1] It
is associated with Mahashay Chuni Lal Charitable Trust.
Mahashay Chuni Lal started the enterprise in Sialkot (now in Pakistan) on March 8, 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, moved 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.
MDH Pvt. Ltd. has set up five state of the art plants for meeting the ever growing demand. The
company procures raw material directly from the centers of produce to maintain uniform taste
and quality. The raw material is first cleaned, dried and tested with the help of special machines.
It is then carefully grounded into the finished product passing through various stages. Fully
automatic machines have been installed for this process.
As a part of their expansion programme, MDH has established large fully automatic
manufacturing plants at Delhi, Gurgaon (Haryana) 3 plants of spices, Papad and Export Unit,
Nagaur (Rajasthan) 2 plants of Methi and spices and Sojat (Rajasthan). Branches have been set
up at Ghaziabad (U.P.) Amritsar & Ludhiana (Punjab)

Today MDH spices and blends are popular not just in India but also around the world and the
products are being exported to the United States of America, Canada, United Kingdom, Europe,
South East Asia, Japan, U.A.E. and Saudi Arabia. Company have own offices in London (U.K.)
and a state of art manufacturing unit at Sharjah (U.A.E.).
During its 93 years of golden performance, MDH wishes to pay a tribute to its associates,
workers and wellwishers, stockists and dealers for their contribution in this glorious achievement
and further wishes to shareits joys with every house-hold in the country and abroad.With all
humility MDH invites you to join in this on-going march towards greater heights of
achievements and seeks your continuos support in its endeavout to make yet greater
achievements possible.

SWOT ANALYSIS

I. STRENGTHS
1. The MDH brand name is very well known throughout India
2. It has a huge network of over 1000 wholesalers and over 400,000 retail dealers in India
3. The company has been involved in several charitable and social activities through its sister
organization which maintains trust amongst its loyal customer base.
4. MDH has become synonymous with the category of spices itself, its campaign Asli Masale
Sach Sach, is one of the most recalled campaign.
5. Focusing on traditional family values of India, company enjoys huge brand recall.
6. MDH has automated machines, with a capacity of producing 30 tons of packaged spices in a
day.

II. WEAKNESS
1. Being an unlisted company in the stock market, company has limited options to generate
equity for expansion plans.
2. Recall of its products due to alleged contamination.
3. Over reliance on an exclusive brand ambassador which is the owner of the company.

III. OPPORTUNITIES
1. Venture into ready to eat food segment present a huge opportunity for MDH.
2. MDH has also ventured into manufacturing and selling incense sticks, Hing, toothpowder and
soya, which increases its presence and encourages more shelf space and cross selling for its
products.
3. Listing the company under a stock exchange will open up huge avenues of capital for the
company to support its expansion plans and allows it to venture into new businesses.

IV. THREATS
1. Company may remain complacent about its dominating market share, and might lose out to its
competitors.
2. Intervention of Government viz-a-viz import & export of spices is causing upheavals in the
market hence affecting both demand and price.
3. Constant increase in costs in terms of raw material inputs, services, power and fuel. The huge
surge in costs continues to be a point of concern for the Company.

INTRODUCTION TO EVEREST MASALE

Parent Company

Everest

Category

Food processing and products

Sector

Foods and Beverages

Tagline/ Slogan

Taste mai Best Mummy aur EVEREST

USP

A perfect blend of pure spices

Everest Spices is an Indian manufacturer, distributor and exporter of ground spices and spice
mixtures under the brand name Everest. For more than 45 years, Everest has shaped the
preference for branded spice in a country where home-made blends were the norm since time
immemorial. It is estimated that over 20 million households regularly use Everest spices that are
available in around 400,000 outlets in more than 1000 towns across India.
Everest spices are also available in the USA, Middle East, Singapore, Australia, New Zealand,
East Africa, and in many other countries, where non resident Indians trust Everest to provide
them the authentic taste of home.
For many years, independent retail outlet surveys by the world renowned Market Research
agency, A C Nielsen have shown Everest to be India's largest-selling spice brand.
Over the years, Everest Masala has won many a prestigious award including Superbrand
(thrice in succession in 2003-04, 2006-07 and 2009-10) and Consumer Reaction Award
(twice in a row, in 2004 and 2005) and others.
Perhaps no other Indian spice brand holds the unique distinction of being the largest-selling and
the most preferred brand on a continued basis.

SWOT ANALYSIS

I. STRENGTHS
1. The MDH brand name is very well known throughout India
2. It is in the market for more than 45 years in the market.
3. Has occupied the global market as well.
4. Many prestigious awards won by the brand.

II. WEAKNESS
1. Lesser number of advertisements
2. Use of too many jingles for its spice variants has been caused confused with its tagline.
3. Less shelf space.

III. OPPORTUNITIES
1. Venture into ready to eat food segment present a huge opportunity for MDH.
2. MDH has also ventured into manufacturing and selling incense sticks, Hing, toothpowder and
soya, which increases its presence and encourages more shelf space and cross selling for its
products.
3. Listing the company under a stock exchange will open up huge avenues of capital for the
company to support its expansion plans and allows it to venture into new businesses.

IV. THREATS
1. MDH increasing and occupying its market share.
2. Intervention of Government viz-a-viz import & export of spices is causing upheavals in the
market hence affecting both demand and price.
3. Constant increase in costs in terms of raw material inputs, services, power and fuel. The huge
surge in costs continues to be a point of concern for the Company.

CHAPTER 4- ANALYSIS AND INTERPRETATION

A. Survey of Retail Stores
1. Which brand of spices occupies the most shelf space?

% of shelf space occupied by each brand

13%

MDH
EVEREST

33%

53%

OTHERS

INTERPERTATION: from the survey it can be concluded that MDH occupies the
majority shelf space.

2. Which brand of spices is most in demand amongst consumers?

most popular brand among consumer

MDH

7%

EVEREST
OTHERS

40%

53%

INTERPRETATION: With 53% of consumers demanding for MDH it is clear why the
brand has more than 50% of shelf space.

3. Do consumers switch over to another brand in case of unavailability of

demanded brand?

% of consumers switching over to alternative brand

13%

YES
NO

87%

INTERPRETATION: With as high as 87% of positive alternative demand, it can be

concluded that brand loyalty for this product category is extremely low.

4. If YES which is the second most preferred brand?

% of Second most preferred brand

MDH
47%

EVEREST
53%

INTERPRETATION: Although both the brands have an equal demand, in case of the
unavailability of the desired brand, MDH is considered to be the best alternative product,
another reason to have a high shelf space in the market. B. Survey of Consumers

1. Which brand of spices do you prefer in your cooking?

Prefrence % for spice brands

7%

MDH

20%

EVEREST
OTHERS
73%

INTERPRETATION: With as high as 73% of consumers preferring MDH, it can

be concluded that MDH is leading the market in this product category.

2. Your preference is influenced by?

% of influencers that affect the prefrence

20%

ADVERTISEMENT
PRICE

7%

TASTE

73%

INTERPRETATION: Just 20% of people influenced via advertisement shows

that TASTE of the product plays a major role in the product category
influencing the demand for the same.

3. Have you recently watched any advertisement for Indian spice

brands?

Advertisement reached to the % target audience

YES
NO

100%

INTERPERTATION: With 100% result, it can be concluded that advertisements

are reaching well to the target audience.

4. If YES through which media vehicle?

The most used media vehicle

T.V.
RADIO
NEWSPAPERS
OTHERS

100%

INTERPRETATION: From 100% result for TVC(s) it can be concluded

that the advertisements for the product category is not well distributed
that is the poor allocation of media vehicles.

5. Tagline recall for MDH and Everest.

% of Tagline recall

MDH

28%

EVEREST
45%

NONE

28%

6. Advertisement recall.

% of Advertisement recall
EVEREST

6%
29%

24%

MDH
CATCH
BADSHAH

41%

INTERPRETATION: From both the pie-charts it can be concluded that

MDH has a high brand recall followed by the EVEREST. High brand recall
thus, shows high brand image of the product.

LIMITATIONS OF THE RESEARCH

Retailers unwilling attitude to respond

Unavailability of data for EVEREST masala through secondary data resources.

CHAPTER 5: CONCLUSION

After the study it can be concluded that although EVEREST MASALA has won various
prestigious awards in its product category, MDH has taken over the market. this shift is clear
from the survey where respondents not only have a better brand recall for MDH also, prefer it for
consumption.
Retailers has also reacted to the change in demand thus increased the shelf space for MDH
masalas.
EVEREST has to quickly react to its competitor or else in no time will MDH take over the entire
market. It can apply the strategy used by MDH and can expand its product line. Hiring of an ad
agency is also not much giving back to the company as there is a poor brand recall, therefore the
company has to come up with new out of the box ideas so that consumers have a better recall for
the brand.