SARANJALIS US

CONUNDRUM
Saranjali Food India Pvt. Ltd.
(SFI)
Safe and Natural
Exceptionally
high
quality
products
Revenue of $ 1 billion in last
fiscal

Anubhav
Asthana
Saransh Trivedi
Abhishek
Kumar

EXECUTIVE SUMMARY
Having read the situational context the team provides the market potential analysis for US
market and proposes the strategy to attract the youth . The course of the case
suggestions are projected below.

Consumer
research

Low
Low
concetration
concetration
High
High potential
potential
market
market

Market study

Needs
Needs and
and
wants
Consumer
Consumer
choices
choices

Segmentation

Nutritional
Nutritional
quotient
quotient

By
By age
age
By demography
By
demography
By
By eating
eating habits
habits

Positioning

74
74 Million
Million Us
Us
population
population

Product mix

Targeting

Students
Students &
&
Professionals
Professionals
Positioning
Positioning
Statement
Statement
Recommendatio
Recommendatio
ns
ns

A good marketing mix including a profound brand ambassador, promotional activities in schools and
colleges and targeting the youth segment through digital media marketing. The listed propositions
suggest a strong entry into the US market, brand recognition, strong recall value
and an estimated revenue stream of $ 12 million.

MARKET STUDY: - INSTANT

NOODLES
IN U.S.
Instant
Noodle
Market in
350

the US

900
$763.70
$754.05
$725.70$733.90$744.40
800
300 $704.70$716.80
700
250
600

150

400

000
tonnes

500

300

100

% share by
volume sales

25%

3%
9%

100

Nissin Top
Ramen
Maruchan
Ramen
Sapporo
Ichiban
Nong Shim
Others

2011

2012

2013

2014

2015E 2016E 2017E

Cups/Bowls ('000 tonnes)

Pouch ('000 tonnes)
Instant Noodles ('000 tonnes)
Cups/Bowls $ millions
Pouch $ millions
Instant Noodles $ millions

Key Market Drivers Instant

Noodle

50%

200

50

13%

$ million

200

Competitors
Watch

Growing popularity of convenience

food
Rise in the women workforce
Introduction of less salt less fat noodle
Innovation in product flavors
Increased per capita income on food

Market Concentration
The Instant noodle market concentration
is 50% and HHI Index is 884 Not a
concentrated market. Entry options are relatively
easier ceteris paribus.
Instant Noodle Market expected to grow at
a CAGR of 0.6 where cup/bowl @ 0.9
and pouch @ 0.5

Sales by leading flavors

1.
2.
3.
4.
5.

Chicken
Beef
Shrimp
Oriental
Pork

6. Creamy Chicken
7. Miso
8. Hot & Sour
9. Vegetable
10. Seaweed

MARKET STUDY: - CONSUMER

RESEARCH

% Population Population (millions) Rising trends relevant to the instant

noodle market in US

13%

Year
s

21.3
20%

1317

62.2
53

67%

0-14

15-64

65+

Year
s

Need
Want
Gap Analysis
Onoff dieting
food
N
E
E
D
S

High protein food

Organic food
Low/minimal
wastage
food
Transparency in supply
chain to meet concern
safety
over
High food
intake
of junk food
Less than needed protein
food
In-Organic food
Huge wastage in food
Rising concern over food
safety
Awareness towards health
compliant packaged food

W
A
N
T
S

Consumer spending remains strong

Young consumers set to become the countrys key
consumer group
Noodles in the US set to grow by 1% in current
value terms to reach US$1.8 billion, and retail
volume sales will also grow by 1%
Growing interest in Asian foods drives growth in
noodle sales
Instant noodles will record strongest current value
growth of 2% in 2017
Children are important consumers, but so too are
their parents
Working women increase their spending power
Expanding urban populations seek convenience
Single-person households create demand for smaller
portions
Stay-at-home diners recreate restaurant experience
at home
Consumer
choices
to
Instant
noodle
Ethical consumers
continue
seek products
that
respond to
and social issues.
market
inenvironmental
US
Choice is defined by flavor
Price point for instant noodle is anywhere below $3
Hot Air dried instant noodles are preferred to
fried ones
As healthcare awareness is increasing, people in the
US are concerned over the nutritional content

PRODUCT -MIX
S
Organic
offering
with
Ayurvedic
roots
High
protein
content
Low price
Growing
popularity
in
convenience food
Growing
market
for instant food
Less concentrated
market

Saranjalis Chicken Instant

Noodles

New entrant in
competitive
market
Product failure in
Indian market.
Established
players
Perceived image
of Indian brand

the Need
Want
Gap
Bridging
Protein content
10g / 100
gm packet
Offering in two types of noodles Atta
noodle for on dieting and normal noodle
for off dieting
Organic Food Product ingredients picked
up directly for farms
Low wastage No wastage to prepare final
recipe.

High precautious to taken during

transportation to nullify the effect of
contamination

Saranjalis Veg Instant

Noodles

PRODUCT -MIX
Nutritional value per 100g (3.5oz)

Nutritional value per 100g

(3.5oz)
1,895kJ
(453kcal)
Carbohydrates 60 g
Dietary fiber
2.4 g
Fat
11. 1 g
Saturated
5.6 g
Monounsaturated 4.5 g
Protein
20 g
Vitamins
Thiamine (B1)
(61%);0.7 mg
Riboflavin (B2)
(33%);0.4 mg
Niacin (B3)
(36%);5.4 mg
Folate (B9)
(37%);147 g
Minerals
Iron
(33%);4.3 mg
Potassium
(3%);120 mg
Sodium
(77%);1160 mg
One package is 80 g
Energy

Ayurvedic RootsIngredients
Noodle Cake:
Refined wheat flour
refined edible bran oil
mineral and xanthan gum
Masala mix:
mixed spices of which ( onion ginger
garlic red chili, coriander powder,
turmeric powder, cumin powder .
Clove)
dehydrated
vegetables,
(
carrot
beans , peas ), salt, flavor enhances,
vegetable protein, soya sauce powder,
sugar, thickner, acidying agent
May contain traces of milk powder, soya
powder, mustard seeds and nuts.

SEGMENTATION
Segmentation by age
(Millions
)

3.5

Segmentation by eating
habits

3
2.5
2
1.5
1
0

50

100

150

200

250

300

.Under 5 years

.5 to 13 years

.14 to 17 years

.18 to 24 years

.25 to 44 years

.45 to 64 years

350

400 0.5
0
School Going College Going Professionals
Taste

.65 years and over

Segmentation by
demographics
(Millions
)
Infants
School Going
Professionals
Retired

College Going
173.38

Convenience

Nutritional Quotient

Key
takeaways
research

56.44 20.57
53.56

Retired

120.07

from

market

The nutritional content in foods is desired

across
segments.
However,
in
some,
convenience or taste takes precedence.
The demand for packaged foods is surely
increasing but may not continue at the behest
of nutritional quotient for long
Many younger consumers look for more protein
and less fast food, and put more importance on
items that are natural or organic.
73 million population is slowly skewing
towards organic food
63% of women population is working.

TARGETING
Our targeting will focus on the urban population which will give an impetus to the logistical
necessities in product distribution. Out of the urban population, the age group between 10 years to
18 years will be our prime target as the population in this category has the potential to be a
lifelong loyal customer. Second target will be the population of the age group 19 years to 30 years.
These are the professional office going, high work load, less time population. These will also
millio self
include the female population who will be our brand ambassadors in taking the product from
n (19-30
consumption to family meal.
61.1

77%
of
population
employed

the
is

21.0
91.8

108
53.0

260.3
millio
n

Urban

years)
(10-18
years)

millio
n

Male

Rural

Total Target
Segment

74
million

Young Gen (10-18

years)

21
million

Male Professionals

26
million

Female Professionals

27
million

63% of the urban

professional
population is female
(19-30
years
of
age).

Female

Male
Female

27

26

millio
n

POSITIONING
Brand Positioning Statement
Saranjali delivers high quality nutritional, tasty and convenient meals,
straight from the organic farms for students and professionals, at school or
office, work or play serving both health and satiation
According to Pew Research, 86% of our targeted customers are online on nearly a daily basis. Members
of this generation tend to be active social media users, with 81% reportedly having Facebook
accounts .Hence we would be using the Social Media Platform for marketing our product to the targeted
customers . It is also known that most of the consumers prefer to shop at brick-and-mortar retail stores,
online shopping nevertheless continues to increase. Hence the channel sales & distribution network of
WALMART could be used to position our product in the U.S market ensuring maximum visibility & penetration.
The Product would be positioned as A High Quality Nutritional any Time Meal in conjugation with the brand
positioning statement to target the potential customers.

Exploiting
the
Distribution Network

Walmart

Long Term Plan

Short Term Plan
Franchising
with
Walmart
Exporting

Wholly
Owned
Subsidory

RECOMMENDATIONS
The team suggests signing up a brand ambassador, likely
the Kansas City Chief team of the NFL. This will connect
the youth to the brand. The team prides in having one of
the most loyal fan bases in the US.

The team suggests promotional events like quizzes and

sports events sponsoring in schools and colleges to have a
connect with the rising student population who can turn
out to be our lifetime loyal customers.

11.2 CR
users

3.3 CR
users
0.55 CR
users

The team also suggests targeting the youth via

the channels of digital marketing with the rising
population hooked to the social media. The fig.
to the left shows the impact.

PREDICTIVE ANALYSIS
According to Pew Research, 86% of our targeted customers are online on nearly a daily basis. Members of this
generation tend to be active social media users, with 81% reportedly having Facebook accounts .Hence we would
be using the Social Media Platform for marketing our product to the targeted customers . It is also known that
most of the consumers prefer to shop at brick-and-mortar retail stores, online shopping nevertheless
continues to increase. Hence the channel sales & distribution network of WALMART could be used to position
our product in the U.S market ensuring maximum visibility & penetration.
The Product would be positioned as A High Quality Nutritional any Time Meal in conjugation with the brand
positioning statement to target the potential customers.
Number of packets
Cost of one container
Packets/Container
Number of containers
Total Shipment Cost
Distribution Cost
Total Manufacturing Cost
Miscelaneous
Brand Ambassador
Total cost
Total Revenue

11,000,000.00
1,167.00
20,000.00
550.00
641,850.00
11,000,000.00
1,870,000.00
3,000,000.00
3,000,000.00
19,511,850.00
31,900,000.00

EBIT

$ 12,388,150.00

Microsoft Excel
Worksheet

References, Facts &

Calculations

I
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2.5% 16.5
%

Assuming that the product is successful in attractive at

least the innovators and the early adopters i.e. 16% of
the targeted segment.

THANK YOU