Project: Marketing Management

Reenergizing Khadi
Submitted to : Prof. Ashok Govande Submitted By:

Ritu Mittal Abhishek sawant Trupti dalvi Vrushali Deorukhkar Vishal Rane

40 110 72 08

Heena Ahuja Abhijeet Tilekar Yogesh Jadhav Pradhymna athalye Angad Baste

61 115 27 62 03

Introduction:

Khadi and Village Industries Commission (KVIC) is an organization operating at the grass root level for the last five decades- in remote rural areas including hill and border provinces, providing employment opportunity to the poorest of poor, creating a feeling of self- reliance and building up strong community spirit in the rural masses. In 1956, Indian Parliament passed an act forming this organization. This Organization was formed by inspiration of Mahatma Gandhi. In April 1957 KVIC took over work of former All India Khadi and Village Industries Board. KVIC is playing a proactive role in Rural Industrialization at low per capita investment. Convergence with various schemes of other Ministries and state government will enable to raise the socio economic status, SC, ST, Women, Minority and Economically Weaker Sections of our society. KVIC is a player which systematically forges ahead & creates a climate conducive to the rural industrialization based on production of masses. KVIC is the core promoting organization for Khadithe tool of freedom, not just a fabric but a philosophy in its own self. Hence it considers Mahatma Gandhi as its Brand Ambassador KVIC has various schemes to promote Khadi & its use. Some of them are as follows: Product development, design intervention & packaging. Mission projects on ready to use khadi in association with the top notch fashions designers if India. Khadi karigar jan shree bima yojana. Khadi artisans welfare fund trusts.
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Other schemes are: Scheme of fund for regeneration of traditional industries. Rural industry service centre. Under the various schemes & projects of KVIC, Village Industries is one of the core sectors in addition to Khadi. Village industries refers to any industry located in a rural area which produces any goods or renders any service with or without the use of power in which the fixed capital investment per head of an artisan or a worker does not exceed Rs.1Lac.

KVICs Product Basket:

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In the area of village industries, the organization has industrially promoted institutions and individuals. With a view of facilitating implementation of V.I programme, and for development of all industries seven groups have been formed. Seven major groups of village industries in the purview are under:1 2 3 Forest based industry Polymer & Based Industry Medicinal Plant, Bee keeping, Forest based industries

Chemical Leather, Non-Edible oil, Soap, Agarbatti, Cottage Match, plastic etc. food Fruits and Vegetable Processing & Preservation, Gur Khandsari, Palm Gur, Processing of Pulses & cereals(PCPI) etc.

Agro Based and processing industry

Handmade paper & fibre Handmade paper & its converted industry products, various products made out of natural vegetable fibres etc. Rural Engineering & Bio- Carpentry & blacksmithy, Bio-gas, BioTechnology manure, Vermi-compost etc. Mineral Based Industry Pottery, Lime etc.

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Textile & Service Industry Lok-vastra, plumbing, laundry etc.

Under the village industries, Bee Keeping comes under the forest based industry & this is the focus of our project. Bee Keeping leads to honey making & wax processing & selling of pollen grains. R & D is a key focus for KVIC in order to be competitive in the market place & hence has tied up with the Central Bee Research & Training Institute, Pune.

In this project, our focus is on the following aspects:4

 Reenergizing Khadi Honey Product line o Product development o Marketing

Reenergizing the organization structure in order to ensure success of the proposed re-launch of the Khadi brand of Honey

Existing Khadi Honey Product Line: The existing Khadi honey products available are as follows: Product Golden Honey (Agmark) Quantity 500 gms 1 kg Price Rs. 100 180 120 225 100 109

Himalayan Honey 500 gms (Agmark) 1 kg Melghat Honey 500 gms

Pure natural 400 gms Honey Nuts in Honey 600 gms

At Khadi, year 20062007 20072008 productio n metric tonnes 189.75 212.5 cost value in lacs (Rs.) 113.85 127.51

Thus we see that production has increased by 11.98 %. Also, our talks with the authorities of Khadi reveal the following:
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All production is immediately consumed & evidently there are good profit margins.

* Also there is a ready demand for Honey as it is used on a very large scale even by the pharmaceutical companies. * Production is limited
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Thus we as marketers see a wide scope not just in large institutional sales but also the retail sector. For the institutional consumers, product offering does not require predominant modification as it is further processed by them. Offerings for the retail market need to be customized as per regions, they need to be fancy & glamorous, promoting health consciousness & be a convenient food garnishing. It also must be an attractive food additive providing a wonderfully satisfying experience to the consumer. We wish to encourage our consumers to experiment with Honey creatively not use it only for its medicinal values. Thus considering the current product profile & product offering of Khadi Honey, we suggest the following PRODUCT DEVELOPMENTS:

PRODUCT DEVELOPMENT:

Product Development has been categorized in to 2 broad categories viz. Mass Range & the Premium Range. The Mass Range consits of value added honey products which are for the masses at large, thus requiring mass production, strong well networked distribution channel, reasonable pricing well within the reach of all. The Mass range products can be made as everyday consumption products. The Premiuim Range consits of value added honey offrings for the niche market consisting of honey connesieurs, food specialists. It is targeted at the well travelled, well informed consumer who is willing to experiment & enjoys the finer things in life. It is for those who wish to appreciate the finer nuances of honey.

MASS RANGE OF KHADI HONEY Liquid Honey Product Attributes:

* Free of visible crystals, liquid honey is extracted from the honey comb by centrifugal force, gravity or straining. * Because liquid honey is free flowing & mixes easily into a variety of foods, it's especially convenient for cooking and baking. * Product Variant: honey with ginger bits * Most of the honey produced in India is sold in the liquid form. * This form of honey is consumed in large

quantities in everyday use. * Packaging: Regular glass & plastic bottles with nozzle variations & Tetra pack with nozzles

Target Audience:
* The Masses at large.

Market Analysis:
* Competitors: Dabur holds 52% market share. Remaining 48% is shared by various other private brands such as Wipros Sanjeevani, Baidynath, Kejriwal & Khadi etc. Pricing: Competitive i.e. continue the existing price range of Khadi Honey.

Honey Glaze
Product Attributes:
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Adds delicious flavor and rich color to favorite meats, poultry and stir fries.
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* * * * * *

Its quick, easy and its real honey! Perfect for busy families looking for a wholesome meal thats quick to prepare. Three fantastic flavors highlight the versatility of honey: Chatpata Chat, Chili Garlic & Classic. Simple ingredient combinations of honey, vinegar and seasonings make this a stable and easy-to-use product. Also works great as a dip for appetizer plates. This form of honey is a value added offering & is a convenience food additive. Packaging : pet jars with nozzles

Target Audience:
Middle & Upper Middle Class working families, Individuals looking for quick healthy & tasty meals. * People across all age groups as honey in this form is not just a healthy option but also a fresh flavoring available to the well aware consumers of today who like to experiment with new cuisines & tastes. * Considering the targeted potential consumers, hotels, airline catering companies, clubs etc too would be our consumers.
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Market Analysis:
Competitors: Domestically no private brand had offered this form of honey. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. Also amongst the imported honey brands available, most of them focus on the liquid honey & Honey glazes are bought by consumers on their trips abroad. * Pricing: as Khadi is tapping a dormant need in the consumers mind through this innovative offering, thereby creating a market for a completely new form of honey, Khadi can demand a relatively premium price for the product. Also the target audience belongs to SEC A+, A, B+, B having disposable income.
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Solid Honey Drops

Product Attributes:
* This all-natural product is made by simply removing most of the water from honey. (Liquid honey is about 17% water.) The honey is processed in a vacuum evaporator until it reaches 99 Brix. It is then poured into a mold while still hot and hardens as it cools. * The original flavor is perfect as a hot beverage sweetener (no mess!) or as a candy. * Flavors: Honey-Menthol is an all-natural throat soother. The honey soothes your throat while the menthol aids breathing. Honey-Ginger is all time favorite sore throat reliever suggested even by the Unani School of medicines in addition to Ayurveda.
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Target Audience:
* The Masses at large.

Market Analysis:
* Competition: Existing private brands offer honey ginger variants of candies. However, they are artificially flavored products rather than being 100% natural. Thus vis--vis competition, Khadi Solid Honey Drops is a 100% natural product having very high medicinal value. * Pricing: Being 100% natural & due to high processing costs Solid Honey Drops would evidently be an expensive product offering. Thus this product variant would be priced on the higher side. Also due to its pricing & the Indian consumer behavior this product would do better in the Export market.

Whipped Honey Product Attributes:

* Honey, a supersaturated solution, in time naturally forms coarse granules or crystals. Controlling the crystallization process to produce fine crystals results in a smooth, spreadable product. Known mostly as whipped or creamed honey, it is also called churned honey, honey fondant, candied honey, creamed honey, granulated honey and honey spread. * A good whipped honey will be easy to spread and will not drip from a spoon at room temperature. * In many countries around the world, whipped honey is preferred to the liquid form. * A healthy & easy spread for breads, rotis, parathas, buns etc. thus, its a healthy convenience food.

Target Audience:
* The Masses at large. This product that can be consumed by all across al strata & age groups.

Market Analysis:
*

Competition: Domestically no private brand had offered this form of honey. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty.
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Pricing: being a first of its king offering in the Honey category, the pricing policy adopted would be skimming the market.

Honey Moo milk flavor

Product Attributes:
* Delicious and wholesome because its made with pure natural honey. * Stir this flavorful modifier into hot or cold milk for instant

dairy delight. * Made with pure honey, it has a cleaner mouth feel than most modifiers which contain mouth-coating corn solids. At 80% honey, the formulation also includes flavor components, Vitamins K and D, Tricalcium phosphate to boost calcium absorption and a stabilizer. * Flavors include chocolate or strawberry.

Target Audience:
Essentially the Kids & teenagers.

Market Analysis:
Competition: Domestically no private brand had offered this form of honey. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. * Pricing: being a first of its king offering in the Honey category, the pricing policy adopted would be Price Penetration Policy to capture large market share.
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Honey Soda
Product Attributes:

* Purely refreshing & lightly sweetened with natural honey. * Honey offers its light taste to either a carbonated Kiwi Lime Soda or a Peach Oolong Tea no other sweeteners necessary. * Both versions are formulated at a slightly lower sweetness than most packaged drinks to appeal to an adult palate.
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* This product need not be processed by KVIP. It may outsource the processing to specialized firms involved in RTD Beverages & be marketed under the KVIP brand & through its distribution channel.

Target Audience:
The adults consisting of teenagers onwards across SEC A+, A, B+, B, C.

Market Analysis:
*

Competition: Domestically no private brand had offered this form of honey sweetened Ready to Drink Beverages. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. * Pricing: being a first of its king offering in the Honey category, the pricing policy adopted would be Price Penetration Policy to capture large market share as its target audience is spread over various social economic classes.

HONEY STICKS:
Product Attributes
* Honey sticks are flavored liquid honey packed in FDA approved plastic packaging of the following dimensions: * Length: 12cms, Breadth: 1cm * Thus these are honey sticks which can be sucked on or alternatively poured over food. * This would be a hit with young kids & a healthy alternative to chocolates. This particular product would find popularity with kids & approval from parents also, if kids are fond of this kind of packaging, it will encourage parents to buy larger quantity of the honey in the bottle format too. * The following flavors are available: Lemon Cinnamon Pepper Mint Orange

Target Audience:
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Essentially the Kids & teenagers. However, it would find popularity with the Grown ups too across all social economic classes.

Market Analysis:
Competition: Domestically no private brand had offered this form of honey Sticks. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. * Pricing: being a first of its king offering in the Honey category, the pricing policy adopted would be Price Penetration Policy to capture large market share as its target audience is spread over various social economic classes.
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PREMIUM RANGE OF KHADI HONEY

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Comb Honey Product Attributes:

* Comb honey is honey that comes as it was produced in the honey bees' wax comb. The comb, as well as the honey, is edible! * It may be packaged in several different ways, from small round or square containers to entire frames straight from the hive. * This form of honey is a table top product to show off the consumers sense of

taste & style. * It is a honey connoisseurs delight! * A product which may consumed for its sheer taste & the adventure/fun of having real honey in its real form.

Target Audience:
Comb Honey is for the elite who dont consume honey just for its health value bit more importantly for those who love to relish honey & understand its finer nuances. Its a premium offering.

Market Analysis:
Competition: Domestically no private brand had offered this form of honey. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. * Pricing: as Khadi is offering an absolutely innovative product for the lovers of honey, hence its a high premium product commanding high prices.
*

Liquid/Cut Comb Honey Product Attributes:

* Cut comb honey is liquid honey that has added chunks of the honey comb in the jar. Also known as liquid-cut comb combination. * It is a honey connoisseurs delight!

Target Audience:
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Liquid-cut comb Honey is for the elite who dont consume honey just for its health value bit more importantly for those who love to relish honey & understand its finer nuances. Its a premium offering.

Market Analysis:
Competition: Domestically no private brand had offered this form of honey. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. * Pricing: as Khadi is offering an absolutely innovative product for the lovers of honey, hence its a high premium product commanding high prices.
*

Honey Vinegar
Product Attributes
* This amazingly delicious creation contains 55% honey vinegar and 45% caramelized honey. * The finishing touch is obtained by aging the vinegar on oak chips. * Healthy & Creative Food Additive.

Target Audience:
It is a honey connoisseurs delight. Not just honey lovers but also gastronomy indulgents.

Market Analysis:
Competition: Domestically no private brand had offered this form of honey Cooking Vinegar. Hence Khadi would be the Pioneer in the market place & have the benefit of Product Novelty. * Pricing: being a first of its king offering in the Honey category, the pricing policy adopted would be Skimming the Market as it is an highly premium offering.
*

We have a 3rd category of honey which the honey for industrial usage.

Dried Honey

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Product Attributes:
* Dried honey products available commercially for industrial use are derived from pure liquid honey (1) to which have been added processing aids and other ingredients, (2) which have been dried to low moisture content, and (3) which in most cases has been converted to a free-flowing product. * Processing aids and other ingredients are added (1) to keep the dried honey free-flowing and (2) to modify and enhance the functionality of the product. * In commercial applications and for labeling purposes, both dried honey and dry honey are used interchangeably. However, the term dried honey is used to mean honey that has been dehydrated in which edible drying aids and processing adjuncts may be included to facilitate processing and improve product stability. * Dried honey products are available commercially in several forms including powders, flakes, granules and crystals. The vast majority of commercial dried honey products are formulated and processed to be free-flowing. * This honey form need not be processed by KVIP. It may outsource the processing to specialized firms involved in Dehydration of Honey.

Target Audience:
The Industrial consumers viz. Pharmaceutical Units etc.

THE MARKETING PLAN

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Here we will talk about how we wish to promote the Khadi Product basket, the media for its marketing, its distribution.

Mass Product Product offerings

Liquid Honey Honey Glaze Solid honey drops Whipped honey Honey Milk flavor Honey soda Honey sticks

Premium Product
Comb honey Liquid/cut comb honey Honey Vinegar

Considering the product basket, following is the proposed Communication Mix:

Mass Range Advertising

Print

Premium Range

Radio T.V

Media Buying

Local Newspapers, Food & Culinary Magazines, Grahalakshmi, femina magazines Business magazines, Life style Magazines like Vogue, Femina, Health etc. In flight magazines. Local Stations World space satellite radio Kids channels like Cartoon Business channels, Life Style Network, pogo. Afternoon Channels women slots, Honey special episodes on Cookery shows. Bill boards, hoardings at public Space in airplanes, rajdhani places, advts. On buses, local trains, billboards near corporate trains etc. parks, spas, gyms, life style residential apartments etc. Sample packs in schools, Tasting like wine and tea colleges, picnic spots etc. tasting, organizing honey tasting sessions at five star hotels, corporate office, canteens etc. Given in bulk purchase Free trail packs of other offerings Advertising through internet, online sales, Catalogue sales of Stalls at expos, exhibitions, Branded retail outlets at malls, cultural festivals, Sarvajanik airports, the Golf clubs etc. festive celebrations such as Ganesh Chaturthi, Durga Pujo, Navratri, awareness & sales
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Sales Promotion
Sampling

Discounts

Direct marketing
Internet Point purchase

activities at large residential colonies etc

Public relations
Press Releases Informative press release Advertorials in target media describing finer nuances of honey, cooking, consumption etc.

Sales Channels
Honey is used in so many ways as a topping for biscuits, in salad dressings at popular restaurant chains and in thousands of manufactured food and nonfood Items. Thus, it is not surprising that there are many channels through which to sell honey. 1. Farmers Markets / Local Direct Sales Direct marketing of farm products at farms, farmers markets and local retail outlets continues to be an important sales outlet. Roadside markets Pick-your-own Local shops

2. Work with the Specialty Food Industry

3. Work with Grocery Stores/Supermarkets Best opportunity lies with local independent grocery chains & mom n pop kirana stores.
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Work With Foodservice/Bakeries

5 Work With Manufacturers Procure from the very many local small processors of honey 6 Work With Separate Marketing Agency For Institutional Sales

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We also propose the Merchandising of other textile based Khadi products in tandem with Honey in order to promote sales, create awareness, and reinforce the presence of the product in the market. For example: Khadi cloth Aprons having Honey logos Khadi handmade Bags having Honey Logos T-shirts having Honey logos (the manufacturing of these t-shirts will be outsourced to a 3rd party) Mugs having Honey logos Coffee Table books on Honey, its discovery, its glorious past, developments, etc

Cooks will flip over this new honey recipe flipbook. Our new cookbook (4-1/4 x 6), Home is Where Your Honey Is, is designed to stand on the kitchen Counter. It contains more than 60 pages of honey recipes and use tips.

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Give customers a reason to buy your honey again and again with these full color hang tags. Designed to hang on almost any honey container, the tags (2x 2-1/2 folded) feature delicious recipes and tips for using honey.

DISTRIBUTION
Distribution is the process of moving your product from your business to the end user. Increased competition in the wake of globalization has lead to the strengthening marketing of both Khadi and V.I. products. There is an impressive network of 7050 inclusive sales outlets managed by more than 5000 certified institutions (NGOs). Distribution is also done through open sale outlets
promotional measures

organizing exhibitions,

buyer- seller meets

Branded khadi outlets on franchisee basis

major retail malls & also mom n pop kiranas(for the mass products)

One major issue that needs to be dealt with is the limited production of honey. The following are the proposed solutions for the same:
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Expanding the Khadi network to involve the many marginal & sub-marginal farmers:

These farmers generally have a land holding not exceeding 1-2 acres & have access to limited water supply. These farmers can cultivate flowers like Jhendu, Champa,
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Chameli in addition to other varieties. These flowers provide the farmer with regular income as they command good prices in the local markets. Further, honey can be collected on the flowering tress planted as boundaries of the land. * Create awareness of the various subsidies, aids, technical training & financial assistance available for Bee Keeping. * Create awareness of the economic viability & profitability of Bee keeping.

Organizational changes
In order to ensure success of the proposed new product developments, marketing & communication mix, we propose the following organizational changes.
Bring in the young generation to re-energize the organization. Region specific & product specific procurement & sales teams.

Product launches in accordance with the demography of the region. Decentralization of decision making yet maintaining responsibility. More corporate approach rather than burecratic.
Supply chain management to be outsourced to a 3rd party.

Increased R & D. Tie ups with strategic business partner such as a retail company having expertise in marketing such as Future Group. Out sourcing of processing.

Thus, innovative product offering coupled with effective & targeted marketing backed by a strong distribution ensures a sustainable presence.

Thank you!

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