SUCCESSFUL MARKETING STRATEGIES AND BUSINESS MODELS

Overview on ORGANIC INDUSTRY

ORGANIC FOOD CATEGORY Organic Cereals Organic Pulses ORGANIC FOOD PRODUCTS Wheat, rice, maize or corn Red gram, black gram Banana, mango, orange, pineapple, passion fruit, cashew nut, walnut Soybean, sunflower, mustard, cotton seed, groundnut, castor Brinjal, garlic, potato, tomato, onion Chili, peppermint, cardamom, turmeric, black pepper, white pepper, amla, tamarind, ginger, vanilla, clove, cinnamon, nutmeg, mace, Jaggery, sugar, tea, coffee, cotton, textil

Organic Fruits

Organic Oil Seeds and Oils Organic Vegetables

Organic Herbs and Spices Others

Organic food business in India

India has emerged as one of the largest markets in the world for organic food. The organic foods or products are healthy, contain no chemicals or preservatives, are totally natural and are much better than any form of non organic foods in terms of the various benefits that they provide to one and all. Organic foods are produced naturally without anything foreign included but traditional foods are constantly sprayed with pesticides, herbicides, hormones and many other chemical. Hence these become an obvious choice of health conscious people in India Also referred to as fresh food or natural food, you can now find it in common retail stores or food outlets inside malls. Organic food can easily be found in India since India is a predominantly agricultural country and the food production of the country is very high hence there is enough organic food which is available in the country and hence there is no need to import the organic foods as well.

WHY ORGANIC FARMING?

Organic farming helps in maintaining our Eco systems and also promotes agro eco system of health including bio-diversity, biological activity. Immense commercialization of agriculture has also had a very negative effect on environment- more pesticides has led to enormous levels of chemicals buildup in environment and our food chain. HEALTH THE BIGGEST CHALLENGE TODAY.

HEALTH- TODAYS GROWING CONCERN

Food product Contaminant pesticides Diphenylamine, Captan, Endosulfan, Phosmet, Azinphosmethyl Apples Diazinon, Thiabendazone, Carbaryl Bananas Cabbage Carrots Cauliflower Grapes Onions Potatoes Methamidophos, Dimethoate, Fenvalerate, Permethrin, BHC DDT, Trifluralin, Parathion, Diazinon, Dieldrin Methamidophos, Endosulfan, Dimethoate, Chlorothalonil,Diazion Captan, Dimethoate, Dicloran, Carbaryl, Iprodione DCPA, DDT, Ethion, Diazinon, Malathion DDT, Chlorpropham, Dieldrin, Aldicarb, Chlordane Methamidophos, Chlorpyrifos, Chlorothalonilo, Permethrin,Dimethoate

THE NEED FOR SWITCH OVER TO ORGANIC FOODS

Tomatoes

Why go organic.

A study shows that global markets for organic food is expected to touch $29 to $40 by 2007. Countries that have opted for organic foods are Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Sweden, Norway, Czech Republic, Estonia, Latvia, Lithuania, US, Canada, Japan, and Oceania countries. The global Prices of Organic foods are more lucrative and remunerative. India can develop SPS norms than EU if organic farming is encouraged and our agricultural exports will not face any problems in the future.

The BIG QUESTION IS ARE WE IN FOR IT

Are we exploiting this growing market, despite the fact that a large part of our country is organic by Default. The Govt. and Exporters should take up task of locating organic farms in the country and encourage them to continue with organic farming. Not that the initiatives have not begin-they have but now an awareness and communication programme should be taken by both as Govt. Information and Education programme at farm level as well as Consumer level while Corporate Body should aggressively carry out mass media awareness on Development of Organic Food.

MARKET FOR ORGANIC PRODUCTS IN INDIA-AT A GLANCE

GENERAL RETAIL LOCATIONS OUTLETS Delhi Hyderabad Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Bangalore Bangalore Trivandrum Cochin

SL.NO. ORGANIC FOOD SPECIALITY STORES 1 Navdanya Organic Outlet 2 Sahaja Aharam 3 Farmers Market 4 Naturally Yours 5 Borkar Farms 6 Naturebound Farms 7 Dosti 8 Concious Foods 9 Venkat Iyer 10 Eco Farms 11 Navdanya 12 Vinita Mathur's-The Health Shop 13 Restore 14 Arogyam 15 Enfield Agrobase 16 Future Foods 17 Naturally Auroville 18 Ahimsaa Research Foundation 19 Simply mmmm 20 Sunday Shandy 21 The Eco Nut 22 Organic Milk 23 Navdarshanam 24 Jaivik Mall 25 Organic Bazaar 26 Lumiere Organic food and vegetable store

LOCATIONS

Big Bazaar Nationally Spencers Nationally Hypercity Nationally Nilgiris South India Valdel South India Namdhari South India Aditya Birla More Nationally Bharti Wal-Mart Cas Nationally Metro Cash & Carry Nationally Tesco Star Bazaar Nationally

BRIEF OVERVIEW ON AMIRA FOODS INDIA LTD

The Amira Group was founded in 1915 and has evolved from Trading into Processing, Branding and Distribution of agro Commodities to become Indias largest privately held rice company. The Groups fourth generation, dynamic leader and visionary entrepreneur Mr Karan A Chanana Group Managing Director is presently steering the business to greater heights. Our Domestic Business today is wide spread across Pan India with more than 120 distributors and presence in all major retain chains. Amira exports a wide range of Basmati, Non Basmati and speciality rices along with a wide variety of agro commodities across 40 countries worldwide. A category focus on rice is well rounded through a commitment to other agro-Commodities and Bulk Commodity Trading in pulses, sesame seeds, sugar, onion, potatoes, maize, soybean extract, edible oil, palm oil, wheat, 9 wheat flour, rapeseed, millets and spices.

PROFILE-AMIRA FOODS INDIA LTD

Our vision is Food Connect, expressed through relationships that bond people and cultures through the language of food that follows from farm to fork providing millions of people a smiling appetite across the world. The company has won many Awards and Recognition as not just as an industry leader, but also for its contributions to the country's growth and economic stability. Ongoing projects for forward and backward integration from the procurement of seeds and organic farming initiatives, through to establishing the first private agro-processing SEZ unit in the countrys Basmati region equips us with greater leverage and economies of scale. The Amira brand has established a reputation for fair trade practices. Quality products, honest pricing and the assurance of customer satisfaction have been the guiding philosophy to grow the brand.

AMIRA BUSINESS APPROACH

BUSINESS SEGMENTION TRADE SEGMENTATION PRICING DYNAMICS PRODUCT PROFILING MARKETING STRATEGY-TRADE WISE

TRADE MODEL MARKET SEGMENTATIONSegmentation of the business is done on the basis of needs & demands of the Market enabling us to have a focused approach for each segment.

RICE BUSINESS

General Trade/ETHNIC TRADE Traditional Shops Wholesalers Moms & Pops store

Modern Trade/MAINSTREAMMULTIPLES
National Chains Regional Chains Standalones Stores CASH N CARRY

HORECA/FOOD SERVICE Hotels Restaurant Caterers Institutions etc

BUSINESS & PRODUCT DISTRIBUTION MATRIX- MAIN STREAM

Amira Foods (India) Ltd

Branded Business Domestic Branded Business Amira Pure Basmati Amira Indigo Basmati Amira Good Length Basmati Amira Good Health Basmati Amira Long Grain Amira Sharbati International Branded Business Amira Pure Basmati Amira Indigo Basmati Amira Good Length Basmati Amira Good Health Basmati Amira Palm Oil Rice Varieties & Edible Oils White or Raw Rice Sella Basmati Long Grain Medium Grain Edible oil Palmoelin

Private Labeling Bulk Commodities Agro Commodities

Sugar

Potatoes Onions Rapeseed Meal Maize Soyabeen Meal extract Millets 13

HORECA PRODUCT STRATEGY

Looking at the current business trends the category of business is divided into following segments.
RICE CATEGORY

TABLE RICE (PURE BASMATIRICE)/ UNPOLISHED RICE

IN FLIGHT KITCHEN STEAMED SELLA

STAFF RICE (LONG GRAIN RICE/ PR-11 SHARBATI

BANQUET &CATERING 1121, PUSA,1121 STEAMED, FUSION RICE BASMATI/BLENDED

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PRODUCT PROFILING - CATEGORY MANAGEMENT

The portfolio of offer from Amira Foods is of a diverse range in category of Lifestyle Rice- Traditional Purity Amira Pure Basmati, Heath and Fitness- Amira Brown Basmati Rice, Enduring Value- Amira Indigo Basmati Rice, Amira Good Length Basmati, Amira Guru Ka Guru Basmati, Specialty Rice- Amira Thai Jasmine, Amira Sona Masoori rice and many more in pipeline.

AMIRA PRICING DYNAMICS-STRATEGY Market dynamics: Plenty of Basmati Rice substitutes available in the market. Low entry barriers No Unique differentiators High on Price sensitivities and Economies of Scale Ideal scenario is to use Penetration and competitive Pricing Strategy for new launch markets and to retain existing markets and slowly phase out.

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Distribution of the Brand- INDIA

Domestic Business Amira offers an extensive portfolio of brands. Customer tastes have been finely segmented to deliver authentic flavour that go well with a variety of popular cuisines. 120+ distributors across India with presence in more than 23 states spread through traditional stores / modern retail / HORECA. Channels General Trade comprises the traditional markets and grocery stores. Modern Trade consists of the upcoming dynamic retail business. HORECA is the institutional selling arm which caters to Hotels, Restaurants and caterers. Reaching across star properties, fine dinning restaurants, QSRs (Quick Service Restaurants) and high volume caterers.
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PRESENCE IN MODERN RETAIL- India at glance

National Chains Wal-Mart- Best Price & Easy day Big Bazaar Sabka Bazaar Aditya Birla- MORE Mumbai: Spencer Retail Shop rite Star Bazaar (Tesco) MP: Self service store: Apurti Supermarket Priyadarshani Army canteen

WalMarts

Hyderabad Vijyeta Ushodaya Supermarket More Hyper Market Rajasthan: Self Service Stores: National handloom Corporation Bangalore: Jumbo- Total

TESCOs Metro Cash N Carry

PRESENCE IN HORECA -INDIA

Pride Group of Hotel Radisson Pune DLF City Club Gurgaon Barbeque Nations - Delhi Seasons Catering Delhi Lemon Tree- Aurangabad Hotel May Fair- Bhubaneswar Lotus Family- Guntur Hotel Welcome- Chennai IN PIPLELINE: Taj Group Jaypee group

Amira Promoter Module The Ace Team

Total Promoter Team Force in India : 54 PAN India STATE
NORTH ZONE

Chains
Big Bazar Food Bazar ABRL

No of Promoters
30

WEST ZONE

TESCO METRO Hypercity Big Bazaar ABRL

20

EAST ZONE SOUTH ZONE

METRO METRO ABRL

1 3

Total

54

STRATEGY FOR END CONSUMERS AND CUSTOMER VIA THE THREE TIER DISTRIBUTION CHANNEL-INDIA
Distribution channel network to reach end consumers
1) -

MARKETING INTIATIVES AND BRAND COMMUNICATION

Using POS material merchandise, sinages, wet sampling, etc to expand, penetrate and influence the end consumers. However the same would require quality, availability and consistency-

General Trade Wholesalers Retailers

2) Modern Trade
-

Price offering for trialsWet sampling for assuranceBrand visibility for recallFood shows for chef networking and using as a model to reinforce our understanding of the business for institutional sales Recipe promotions in ATL for consumer as well as our product awareness in the institutional business

Retail Chains Standalone stores

3) HORECA

Cont

Distribution channel network to reach end consumers

4) ATL

MARKETING INTIATIVES AND BRAND COMMUNICATION

Mass media campaign to boost the maximum sales with our customers and during festive season-New Crop along with the QPS offer to boost the maximum sales

AMIRA PRESENCE IN UAE

UAE

DISTRIBUTION OF BRAND IN UAE

Amira Basmati Rice was launched in UAE in Feb 2010. Within a span of 10 months Amira has captured almost 70 % of Modern Trade with presence in stores like Choithrams, Lulus, LAMCY PLAZA, GEANT, GIANT and many more. We are gaining wide spread presence in Cold stores as well as Super markets. Food Service and wholesale business is also gearing up fast. Some of our presence.

MODERN TRADE PRESENCE- UAE

24
=

07

SHJ COOP EMIRATES COOP

17 06 05

24
=

26

RAK COOP DUBAI SELF SERVICE STORES

= =

500 150 200

=

24
=

11

ALAIN (ASST CUSTOMERS) AD (ASST CUSTOMERS) UNION COOPERATIVE SOCIETY

20
=

01

09 05 10

18
FATIMA STORES
=

08
AD CO-OPERATIVE SOCIETY
= =

04
AL MANAMA
=

11 01 08

01 07

WORLD MART AL WAFA

= =

ALIAN COALIAN COOPERATIVE SOCIETY OPERATIVE SOCIETY

BRAND PRESENCE IN UAE

CR Safa Parle

CR UM Squeim

Unicop Jumeraih

THANK YOU

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