The role of marketing fundamentals cannot be neglected today since it has become a compulsion to understand basics in detail. Over a period, many theories have been developed continuously by different scholars, but possibilities are limitless, and we have seen multiple unique studies though related but different, the permutation and combinations are infinite.
The goal of this assignment was to Study the packaged edible Honey market in India,
1. Conduct an environment and competitive analysis.
2. Understand & estimate market size and potential.
3. Draw out a project segment, target and positioning strategy for a new entrant to The honey market in India which is challenged by existing FMCG company which is a well- known and established an indigenous brand.
Packaged Honey market in India.
References to honey and honey bees occur in ancient Indian literature like Vedas, Ramayana, Mahabharat and Upanishads, which probably date back in between 11000-1200 B.C. Mention of bees and honey has been profusely made in these scriptures to explain the philosophy of life by giving several analogies (Dave 1954,1955). Mention of honey as the only sweetening agent, then known to mankind, has occurred at various places. In Rigveda alone, which is the oldest scripture in the world, the “Madhu”, meaning honey, has been used for 300 times (Mullick, 1944) . Mullick has cited several quotations in support of his statement, a few which are as follows:
1) |(Madhvā saṁpṛktāḥ sāragheṇa dhenavaḥ |) Meaning, “Drinks containing milk have been saturated with bee honey” (Rigveda 8.4.8)
2) |(Imehi te Brahmakṛtaḥ sute sa cā madhau na makṣa āsate|) Meaning, “Here are thy invokers (worshipers) together waiting with offering for thee like bees sitting together on honey” (Rigveda 7.32.2)
3) |(Āśvinā sāragheṇa mā madhunāṅktaṁ śubhaspatī | Yathā varcasvatī vācamāvadāni janāṅ anu |) Meaning ,“Asvins Granter of good , annoint me with bee honey ,so that I may address glorious words to the people . “(Atharva 9.1.10)
Above reference’s are ancient facts, it also gives an idea that Indian’s know the value and potential of Honey is right from stone age, India markets from small villages to big town been selling unpacked honey or what we call a local version of honey from ages, there is a huge market presence for honey as it utilized not only in daily use but also used as part of medicine from centuries. In short Honey is an integral part of lives of Indians.
Due to the demand Indian Market in recent years have see a big surge in brands and types on Honey, organized packaged Honey industry is trying hard to distinguish them self from one another and appeal the consumers in different ways weather its being closer to natural Honey or focusing on a region or type of Honey’s. There are still Unorganized sectors where ancient ways are still followed in Honey harvesting and sold with the purity and without any good or bad adulteration. The pure honey carries a boat load of nutrition without added sweeteners and preservatives. It may not be as attractive as bottled products, its more of a gamy and crystallized than liquid forms and may not be as sweet as some branded ones, Consumers need to learn on how to look for raw honey before they venture out to these markets. In an organized market too consumes are advised to check labels to understand the ingredients added to the honey. Below, we give the list of top few best brands of honey in India
1. Hitkari Honey
Hitkari honey is one of the most trusted brands of honey in India. Back in 2010, it was established that Hitkari honey manufacturers do not use antibiotics in honey, and their product is genuine. The brand claims that it operates only in season, unlike the big manufacturers who push antibiotics in bee colonies to prevent infections. The brand is also into manufacturing health drinks and Sharbat.
2. Dabur Honey
India’s
largest Ayurvedic medicine & natural consumer products
manufacturer, Dabur has been around centuries and holds strong
footprints in the minds of people. Dabur Honey, too, echoes the
brand’s promise to uphold purity and health and brings to you 100%
pure honey. The Sundarbans forests are the sources of honey for
Dabur, and rest assured, it is free from chemicals and preservatives.
The glass bottle packaging is an added advantage. It ensures no harmful matters are transferred unline plastic or metal containers.
3. Beez Honey
Though a new brand, Beez honey has been making natural, high-quality honey for ten years now. The state of the art processing plant ensures least or zero interference by hand. They make premium honey that is exported to other countries in the world and deals with many types of honey for specific purposes.
4. Little Bee Organic Honey
Premium and prominent, Little Bee manufactures various types of honey, such as natural honey, blend honey, premium honey, and organic honey. The process of extraction of honey is by hand, under strictest hygiene standards. The brand has also won the APEDA award once for its purity and quality. Being a premium brand, it comes across as expensive, but once you taste it, you will become a loyal customer.
5. Apis Himalaya Honey
Apis Himalaya honey is processed with modern technology and without using chemicals. The quality is good, and the prices are affordable. The company has an in-house laboratory and a world-class processing plant that prepares honey, retaining its nutritive aspects. It offers various variants of honey, and you can choose based on your needs or specific requirement. It tastes sweet, is easily spread on bread and rotis, and is instantly liked by everyone. It can also replace your sugar in your cup of tea or coffee. You can use it for cooking and baking, as well.
6. Dyu Honey
Dyu in Sanskrit means ‘glow’ and that is what the brand stands for. Every drop of honey from Dyu glows with the natural ingredient. The brand sells pure, artisanal, and naturally extracted honey with little human-made processes to pack it from the hive to the bottle. It also has therapeutic properties, and everyone can benefit from the Dyu honey. It is naturally sweet, does not contain added sugars. Makes for an excellent accompaniment to your food and otherwise.
7. Zandu Pure Honey
There is no denying the fact that Zandu pure honey has been around for many years now. The distinct taste, aroma, thickness of unprocessed natural honey can be well experienced with a bottle of Zandu pure honey. It does not contain added sugars and does not have any fat. A German laboratory has confirmed that Zandu honey is pure and does not contain added sugars.
8. 24 Mantra Honey
Certified organic, without preservatives and chemicals, 24 Mantra honey is naturally processed from various flowers in the Himalayan ranges. 24 Mantra honey gets packed after filtering with little interference and zero contamination, thus retaining its natural and healthful properties. It has a great, delectable taste and is free of any preservatives or harmful chemicals. 24 Mantra honey can is used for various purposes like cooking, beauty, and therapeutic purposes.
9. Patanjali Honey
Patanjali has carved a niche for itself in recent years. The brand claims, its honey is unprocessed and natural, though there has been some concern over the deposition of honey at the bottom in Patanjali bottles. The brand has clarified that pure honey tends to change its composition as per the seasons. Patanjali has taken Ayurveda to another level, so many people are sure about the brand’s commitment to purity.
10. Baidyanath Madhu(Honey)
Talking about honey, it is unlikely that the Ayurveda brand Baidyanath honey does not get a mention. Renowned for its purity and authenticity, Baidyanath Madhu comes from the forests of Sundarbans and some Himalayan ranges. There is no question of chemicals and additives, and rest assured you get the benefits of natural honey with this one.
Environment and competitive analysis along with estimates of market size and potential
In recent years the Honey market like any other commodity market is divided into 2 part as below;
1. Unorganised Sector – Open unpacked honey where ancient ways are still followed in Honey harvesting, but that has been done by the aboriginal community & now they are very few in numbers. They don’t have long reach to all rural & urban consumers. Many cheatings have been reported about quality. Also, people are not much aware of how to check the originality of the product. Due to such reason’s consumers are more transferred to packed branded products.
2. Organised Sector – Packed Honey market trend for Honey is going upward of packed products. The top-notch concrete reason is a failure of supply by the unorganised sector to the consumer of honey as per demand. Another rationale which hauls the patron is that people in the modern world are transferring their pattern of medicine from allopathy to ayurvedic or Herbal. Honey has its significance in ancient Indian medicine, and Ayurvedic medicines are believed to be more effective when taken with honey. Modern science confirms the importance of taking honey regularly for our well-being and health.
As per last research reported honey market in India was worth INR 15,579 Million in 2018, registering a CAGR (Compound annual growth rate) of 10.9% during 2012-2018. The market is further projected to reach a value of INR 28,057 Million by 2024, at a CAGR of 10.2% during 2019-2024. Beekeeping has been one of the oldest activities in India. This makes it one of the leading honey markets in the world which have created intense competition in terms of innovation and cost. Additionally, the demand for honey in India is augmenting on account of the growing consumer preference for natural and healthy alternatives of artificial sweeteners, rising awareness regarding the benefits of honey and increasing popularity of various honey flavours. In addition, owing to it’s proven anti-bacterial, anti-microbial and anti-inflammatory properties, honey is projected to gain momentum in both the food and non-food applications across the country.
Segmenting, Targeting and Positioning Strategy for a new entrant to the Honey market in India.
The market currently is flooded with a vast variety of Honey, with each one bearing its characteristic taste, flavour and colour. To be precise, there are more than 300 types of honey that exist today and with each one boasting of a special set of health and nutritional benefits, Honey lovers are in for a sweet time.
Segmenting:
Till market is not been targeted by flavoured honey product and layman even don’t have knowledge of it. India largely segments the market on the following variables:-
·Demographic Variables
· Psychographic Variables
· Behavioural Variables
# Demographic Variable – Demographic variables refer to factors like age, family structure, etc.
a) Age and A lifestyle of consumers don’t affect the choice and need for honey products. The phenomenon is best observed in other food & beverages product. Consumers who are young prefer chocolate while older people avoid consumption, but honey is used by all ages people.
b) Family structure in rural areas still believes in joint family culture while in urban more nuclear families. The higher is the number of persons living in a family, the more is the consumption of honey as it is been liked by all ages.
# Psychographic variables play a very important role in market segmentation. Rural India maintained a negative attitude and perception towards packaged food & beverages; however, change in old attitude has been brought due to communication and education. Psychographic variables are: –
a) Lifestyle is the factor which helps in segmenting the rural market for the honey market. Villages near to town show slightly different lifestyle as compared to villages away from the town area.
b) Perceptions and attitudes are one of the ways market segmentation for honey. people thoughts are very simple, but they show a keen interest in knowing the product’s quality. Hence, establishing trust and faith for the consumer is very vital for success.
# Behavioral Segmentation is multi-factor market segmentation approach, usage of product/frequency of consumption and expenditure on Honey can help in segmenting market. Furthermore, a new market for existing products can be indicated, as well as appropriate communication and advertisement themes can be adopted for product promotion.
a) Consumption/usage segmentation of the market on the basis of how often a customer uses its honey, categorizing these into high, medium and low users, by usage rate or frequency.
b) Basically, consumers prefer a brand which they have been using for a long time and hence, creating brand loyalty segmentation can help in creating a market for products.
c) Place of purchase basis of segmenting market is another way. Shops are the best place to promote new product also near hospitals, public places, meals, malls are best place after shop to promote our product.
Analysing the variables and various factors, it is clear that within a country, specifically in India, market segmentation for Honey can be done on the basic demographic variables, psychographic variables and behavioural variables. In reality all three variable and sub-variables (within variables heads) are valid for market segmentation for honey. Geographical variables are not considered above as witnessing a steady surge in demand 100 per cent natural product all around the country, derived out of nectar from flowers and made by honey bees, honey has zero fat and zero cholesterol, and is ideally suited to the modern-day hectic lifestyle. Benefit details are covered in the above variables & people are used to the product.
Targeting
· Honey is available in different flavours depending upon the flowers used by the bees to produce it. As a result, there is a diverse range of honey products currently available in India which find applications in the food and beverage, cosmetic and pharmaceutical industries.
· Scientific validation of the medicinal utilization of honey and its growing value as a premium ingredient in nutraceuticals are also acting as strong market drivers.
Breakup by Flavour:
The company also should provide specialised honey, which comprises ginger, lemon, organic, honey with nuts and honey with a comb, and the products have benchmarked to meet certification of nation & international institutes for food & beverage’s (like; Food Safety and Standards Authority of India (FSSAI), EU, etc)
Positioning: –
Tag line: –
1. Change your taste,
2. Such(Real) taste never before,
3. Davai baccho ko aab mithi lage (बच्चोंकोदवामेंमिठासमिलतीहै)/ Kids love to take medicine’s
· Positioning stands for to promote (a product, service or business) within a particular sector of a market, or as the fulfilment of that sector’s specific requirement.
· Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors.
· The purpose of a positioning the strategy is that it allows a company to spotlight specific areas where they can outshine and beat their competition.
· There are 7 types of market positioning: –
A) Customer needs
B) Customer perception
C) Brand recognition
D) Pricing
E) Quality
F) Convenience
G) Customer satisfaction
· For the honey market, we will use positioning by customer perception, quality, convenience and customer satisfaction (other words product differentiation), as Customer needs is already there, Brand is already established, pricing is not constrain for unique product.
· In packed food product perception of customer and quality always affects the buying behaviour of the customer.
Conclusion: –
As we are introducing flavoured honey in the market which is very new for the consumers. The company have to make customer aware of the new flavoured honey but at the same time the company has to make sure the quality and the benefits of the product is not compromised. Honey is consumed for the health benefits but the taste maybe not liked by all. So, the new tasty honey will help the consumer to consume the healthy product with good taste and with the same benefits.
For segmenting packed flavoured honey will attract every age customer. Young and old age customer will consume it for the health benefits and kids will love this product for the taste, a customer who is not consuming it for the taste will also consume it for the flavour and benefits.
For targeting packed flavoured honey, the product itself is different from all the other product which is there in the market. The flavoured honey will be different and new than the traditional packed honey. The traditional honey consumer doesn’t have any option so the consumer will continue the usage of the product whether they like it or not or leave consuming. At the same time, the flavoured honey will give consumers a unique choice of taste and the benefits of consuming it. In future after the successful launch of the routine product and it gets established after six-month company should also provide specialised honey, which comprises ginger, lemon, organic, honey with nuts and honey with a comb, and its products have been benchmarked to meet European Union (EU) and other nation/ international certificates. So that we can target not only the nation but also the international market
For positioning the company use customer perception and quality. Consumers having negative perception towards traditional honey taste, flavoured honey will change the perception of the consumer and the quality is the same as the traditional honey with same health benefits, also Indian are well aware of quality test which most honey don’t pass is it gets frizzed in winter or if they put it in refrigerator(In other words customer will get Convinced) . If our product will pass this taste by supplying crystal clear quality, word of mouth marketing will help to build positive feelings about your products, and that helps build your company’s brand. Providing resources—such as tips, information and articles—gives our customers an easy means of sharing information about our company while establishing our new brand (Customer will be satisfied & become loyal to the brand).
After consumers become brand loyal, we can launch a new variety of products like Honey with comprises ginger, lemon, organic, honey with nuts and honey with a comb, etc.
