Asian J. Dairy & Food Res.., 33 (3) : 209-214, 2014 doi:10.5958/0976-0563.2014.00604.6 AGRICULTURAL RESEARCH COMMUNICATION CENTRE www.arccjournals.com AN ANALYSIS OF MARKETING MIX OF VARIOUS MANGO PULP BRANDS IN SOUTH GUJARAT www.indianjournals.com Ruchira Shukla*, Bhavesh Chaudhari, Gayatri Joshi, A.K. Leua and Rahul G. Thakkar ASPEE Agribusiness Management Institute Navsari Agricultural University, Navsari - 396 450, India Received: 04-02-2013 Accepted: 11-10-2013 ABSTRACT South Gujarat is one of the important clusters of mango pulp in the country with a number of processing units in the region with a good backward linkage of Alphonso and Kesar variety of mangoes. A number of processing units have been manufacturing mango pulp and marketing it in local as well as national and international markets. In order to understand the overall current market conditions and demand for mango pulp, the present study was undertaken with the objective to understand the marketing mix of mango pulp marketing. Three districts of South Gujarat Navsari, Valsad and Surat were selected for the study. The study concluded that manufacturers adopt different marketing mix for different segments of markets. Majority of mango pulp processors were mainly targeting International market and exporting mango pulp to various countries like UK, USA, UAE, and other gulf countries while small manufacturers served their products mainly in regional market of South Gujarat. Key words: Mango pulp, Marketing mix, Processors, Retailers INTRODUCTION The market for mango pulp has been growing steadily since the 1990s and this trend is expected to continue. India is the largest grower of the most widely recognized variety of mango (Alphonso) used in pulp manufacturing. India exported 174860.33 MT of mango pulp worth Rs. 77294.76 Lacs in 2013-14, a 18.29 % increase in quantity while 27 % increase in value from 2012-13.The major export destinations include Saudi Arab, Yemen Republic,Netherlands, UAE,Sudan, USA, China, UK, Kuwait and Germany.(APEDA,2014). India also dominates the world market for mango pulp with a 67% share of world exports. The largest share of mango pulp (25%) goes to the Middle East, followed by Southeast Asia and North America. Mango pulp is gaining popularity in western markets because consumers are buying fresh mango fruit and becoming familiar with its taste. (Anonymous 2009) The world demand for mango pulp is projected to grow by 8%. (Anonymous 2005). South Gujarat is one of the important clusters of mango pulp in the country with a number * Corresponding author email: ruchira.shukla@nau.in of processing units in the region with a good backward linkage of Alphonso and Kesar variety of mangoes. The growth of mango pulp industries will bring large benefits to the people by way of employment and income (Xavier, 2008). In order to understand the overall current market conditions and consumer demand for mango pulp, the present study was undertaken during 2011 to examine the market penetration of various mango pulp brands in South Gujarat and to understand the marketing mix (product, price, place and promotion elements) of mango pulp marketing. MATERIALS AND METHODS Three districts of South Gujarat Navsari, Valsad and Surat were selected. Primary data was collected using personal interview of retailers, consumers (households and Caterers) and mango pulp processors. Semi structured questionnaire was designed to collect information from the respondents. Three different types of questionnaires were prepared for collecting information from mango pulp manufacturers, retailers and consumers. The data pertains to the year 2011. Fifteen retailers from each
www.indianjournals.com 210 ASIAN JOURNAL OF DAIRY & FOOD RESEARCH district at district head quarters were selected purposively making the total sample of 45 retailers. The sample included different types of retailers such as Kirana stores, Sweet and Snacks shops, Bakeries etc. Both quantitative and qualitative approaches were used for the data analysis. Statistical tools like mean, frequency, and percentage were used. RESULTS AND DISCUSSION Market penetration: Number of brands stocked by retailers: From total 45 retailers, 42 % retailers stocked only one Brand, 36% stocked two brands and 22 % retailers stocked more than two Brands of Mango pulp at their retail outlet. TABLE 1: Number of brands stocked by retailers N = 45 No. of stocked No. of Percentage(%) Brand Respondents One 19 42.2 Two 16 35.5 More than Two 10 22.2 Total 45 100 Different brands were preferred in different districts depending upon the distribution in the respective areas. According to retailers, availability of Brand at retail outlet is very important. Majority of consumer makes a purchase from available brands only. Overall, Murohi is the most preferred Brand (46.6%) in South Gujarat, followed by Swad (28.8 %), Casilla (22.2%), Hampa (17.7 %), Vadilal, Casilla, Amidhara, Rasanand and Vrindavan respectively. Retailers were asked to rank various mango pulp brands on 5 important parameters on a scale of 1-5. In terms of quality, price and availability Murohi was rated best compared to all other Mango Pulp Brand. Murohi brand rated overall high was rated high on good retail margin, availability at retail outlet and quality.vadilal was ranked highest on Brand name while Swad was ranked highest on taste. Abeyrathne et al, (2006) and Singh et al (2008) also reported taste and quality to be the major factors affecting the selection by the consumers. Majority of the Kirana stores (35.7%) sold in the range of 100-200 tins every year. Majority of bakery stores (57.1%) sold less than 100 tins a year. Majority of dairy stores (40.0%) sold more than 300 tins a year while 33.33%stores sold less than 100 tins a year. Majority of Sweet and snack shops also sold more than 200 tins a year. Dairy and sweet and snack shops were found to be highest selling retail points. Abeyrathne (2006) reported that most consumers preferred to purchase fruit products from ordinary retail shops. Marketing Mix: Product Variants of mango pulp offered: For domestic market all the Companies have single brand of mango pulp in different variants like Kesar mango pulp, Alphonso Mango pulp, Natural and sweetened mango pulp. Anonymous (2006) reported Alphonso and Totapuri two main variants primarily used for making mango pulp. Both Kesar and Alphonso mango pulp were found to be the most sold mango pulp variety at retail TABLE 2: Ranking of mango pulp brands on various factors by retailers Parameters Brand Quality Margin Taste Availability Total Rank Swad 3.80 3.43 2.56 3.81 4.12 17.72 2 Murohi 2.65 4.00 3.6 3.75 4.25 18.25 1 Hampa 3.37 3.62 2.75 3.75 3.50 16.99 3 Casilla 3.14 3.28 2.57 3.14 3.57 15.70 5 Vadilal 4.00 3.33 2.33 3.00 4.00 16.66 4 Rasanand 2.00 3.25 2.75 3.00 3.25 14.25 7 Vrindavan 1.50 3.00 2.50 3.50 3.00 13.50 8 Amidhara 2.50 3.50 2.00 3.50 4.00 15.50 6 TABLE 3: Average annual sales volume of different type of retail outlets (tins) Type of Retail outlet Kirana Bakery Dairy Sweet and Juice and Ice- Total Average Annual sold Volume (tins) snack Shop cream parlor Less than 100 4 (28.5) 4 (57.1) 5(33.3) 3 (42.8) 2 (100) 18(40) 100-200 5 (35.7) 2 (28.5) 2 (13.3) 0 0 9(20) 200-300 2 (14.2) 1(14.28) 2 (13.3) 2 (28.5) 0 7 (16) More than 300 3 (21.4) 0 6 (40.0) 2 (28.5) 0 11(24) Total 14 7 15 7 2 45(100)
www.indianjournals.com outlets. 62% retailers sold both the variety Kesar and Alphonso mango pulp while 22 % retailers told Kesar mango pulp as the most preferred variety at their retail outlet. 16 % retailers sold only Alphonso mango pulp at their retail outlet. For consumer use, most manufacturers used 2 different size of packages i.e. 850gm and 3.1 Kg. For institutional customers and caterers, manufacturers used plastic jar of 25 Kg pack. 80% processing unit use tin packing in 3 different sizes, i.e. 450gm, 850gm and 3.1Kg for consumer segment. For institutional use they provide 25-30 Kg mango pulp in plastic jars.10% mango processing units were offering mango pulp in glass bottle packing, and 10% offering pulp in plastic pouches mainly for local market. All the 45 retailers stocked 850gm packages of various mango pulp brands while only 8 Retailers stocked 3.1Kg packages of Mango pulp Brands at their retail outlet. TABLE 4: Variants of mango pulp offered n = 10 Different Mango Pulp No. of Percentage Varieties Respondents Kesar Mango pulp 10 100% Alphonso Mango pulp 10 100% Only Sweetened 5 50% Sweetened and Natural 5 50% Total 10 100% TABLE 5: Most preferred variety of mango pulp according to Retailers Type of Mango pulp No. of Percentage Respondents Both Kesar and Alphonso 28 62% Kesar 10 22% Alphonso 7 16% Total 45 100% Vol. 33, No. 3, 2014 211 and other gulf countries. 30% manufacturers served their products mainly in domestic market, mainly in Surat, Valsad, Navsari, Tapi and Dang districts of South Gujarat. These were small scale units who had a small production capacity and they were concentrating on the local markets. Hanemann(2006) also emphasized on entering new export markets which offer higher returns and developing backward and forward linkages. If exported, high value mango products might provide access to new markets which have the opportunity to export with high profitability. Majority manufacturers (70%) sold their mango pulp to food Processors like ice cream and mango juice manufacturers like Amul, Sumul, Havmore as well as small juice and lassi points.30% manufacturers directly supplied their mango pulp to caterers and 40 % manufacturers supplied their mango pulp to organized retailers in domestic as well as organized retail players in UK and USA. Food manufacturers use most of these products as ingredient or raw material. Mango juice, pulp, puree and concentrate e.g. are used in dairy products, baby foods, bakery products etc.(bradley and Castellanos,2007). Processed products are sold to wholesalers, supermarkets, hotels, cafes, hospitals and schools.(kiilu and Wambugu 2001). Promotion: Majority (60%) manufacturers do not make use of any type of promotional activities such (Advertising). But most of them make good relations FIG 1: Mango pulp packages Major Market Served: 70% mango pulp processors were mainly targeting International market and exporting mango pulp to various countries like UK, USA, Canada, Japan, Australia, Germany, UAE, Distribution Network Distribution channel for local and domestic market: Company Retailers Consumers Company Wholesalers Retailers Consumers Company Caterers / Processors Consumers Distribution channel for export market Company Overseas Organized Retailers Consumers Company Exporting agencies Overseas buyers Retailers Company Merchant exporters Overseas buyers Consumers
212 ASIAN JOURNAL OF DAIRY & FOOD RESEARCH www.indianjournals.com with their buyers. 40% manufacturers used different type of promotional activities like they advertised their product in local news paper, magazine, regional T.V. channels like ETV Gujarati. Manufacturers used Hoardings, Posters, and Calendars for advertising their product. They also participated in various trade fairs and exhibitions. Kiilu and Wambugu, (2001) reported participation in trade fairs, symposia, exhibitions, business net-works, etc for mango pulp promotion. TABLE 6: Most effective scheme (n = 21) Most effective scheme No. of Percentage respondents Quantity discount 11 52% Free sample on bulk purchase 5 24% More discount on cash payment 3 14% Discount during off season 2 10% Quantity discount / more discounts on bulk purchase was the most preferred scheme (55%) by retailers followed by Free sample on bulk purchase (24%), more discount on cash payment (14%) and discount during off season (10%). Abeyrathne (2006) reported retailers needing longer credit periods, higher discounts and acceptance of the faulty products. Price: The average retail price(mrp) of 850gm tin of Kesar mango pulp was found to be Rs. 99 and Rs. 125 for Alphonso Mango pulp and the average TABLE 7: Average retail price of mango pulp price of 3.1Kg pack of Kesar mango pulp was Rs.320 and that of Alphonso Mango pulp at Rs. 450. Average market price in export market is $6/tin of Kesar Mango and 7.5 $ / tin of Alphonso Mango. Manufacturers provide 25-30% margin to the distribution channel. Anonymous 2009 reported that the distributors in Mali take a 10% to15% mark-up on their product and also reported that the average retailer mark-up is 20-35%. The prices of mango pulp fluctuate by variety, by time of the year and from year to year. The market price is highly dependent upon the farm gate price of fresh mangoes, which largely depends on the size of the yearly crop. Crop size varies wildly from year to year, often affected by storms or unusual weather patterns. It is therefore difficult to predict the price of mango pulp prior to the approaching season.(anonymous 2009). When information was collected for percentage of business from different product type, TABLE 8: Percentage of business from Mango pulp for processing units Percentage of business No. of Respondents Percentage from Mango pulp Less than 50% 2 20% 50-80% 5 50% 80-100% 3 30% Total 10 100% Particulars MRP of Kesar Mango Pulp MRP of Alphonso Mango pulp Various brands of mango pulp Rs. 100-130/850gm, Rs. 125-150/850gm available in Market Rs. 350/3.1Kg Rs. 450/3.1Kg FIG 2: Major Market served Major Market Served Institutional Customer Segment
www.indianjournals.com all the units were engaged in producing mango pulp. 30% of sampled units got 80-100% business from mango pulp, 50% manufacturing units got 50-80% business from mango pulp followed by remaining 20% units who got less than 50% business from mango pulp. It indicates that certainly mango pulp is an important processed product of mango and has a large acceptance in market. Availability of raw mango is the major issue as the supply is not consistent owing to dependence of production on weather variations. It also affects the price of raw mangoes and the fluctuating price affects production cost. The large and medium firms take up processing of a number of commodities however small firms mainly process mango. This has implications on capacity utilization. Singh et al (2007) and Shepherd (2003) also reported that weakly developed supply chain for fresh fruits as one of major issues inhibiting the development of profitable business. Suggestions: 1. Small firms should improve their packaging to compete wi th the other brands in market. Companies should introduce Mango pulp in small packages like 250gm and 450gm packages since number of nuclear families is increasing. 2. Firms should go for product diversification for better capacity utilization and increasing the number Vol. 33, No. 3, 2014 213 of days of operation. Company should introduce new products like ready to drink products, mango slices, mango pieces with other fruit pieces, mango jelly, mango role and other new products. 3. Mango pulp manufacturers should establish contacts with institutional segment for direct marketing to caterers, other food processors, organized retailers etc. 4. Since the small firms are viable, the support and incentive should be given to enable them to compete with organized industries. Government should promote the production of mango and other horticultural commodities in the region to promote the adequate supply of raw materials throughout the year for increasing capacity utilization of the firms. CONCLUSION The production and marketing of mango pulp has great potential and presents a good scope and opportunity in domestic as well as international market at all the scales of production. The demand can be tapped on sustainable basis by setting up proper marketing network, maintaining taste and quality, using improved packaging and hygiene standards, understanding requirements of different markets and ensuring regular and cost effective supply of raw materials for processing. REFERENCES Abeyrathne A.H.M.S.W.B. and Hannah J. (2006). Potential for Small Scale Processing and Marketing of Tropical Fruits in the kandy, Galle and Horana Divisional Secretarial Divisions of Sri Lanka, International Centre for Underutilised Crops : 21-39. Anonymous (2005) A Pre-Feasibility Study on Mango Pulp conducted by Punjab Agricultural marketing Company, Govt. of Punjab, Pakistan Anonymous., (2006). Diagnostic study MSME the food processing cluster krishna district, Andhra Pradesh, In : Cluster development in India, 2002-2005 by Cluster Development Agent District Industries Centre Vijaywada, Krishna District,Government of Andhra Pradesh. Anonymous (2009).Chittor fruit processing cluster.a Holistic Perspective, A report of MFRC project. Anonymous (2009) Mango Pulp and Nectar Processing in Mali: A Technical and Financial Analysis for the Malian Investor A report by United States Agency for International Development and Abt Associates Inc. APEDA (2014) online, accessed at http://agriexchange.apeda.gov.in/product_profile/prd_profile.aspx?categorycode= 0303 on 4/10/2014 Bradley, Don B.and Castellanos, Diana (2007) Analysis of a Small Honduras Mango Producer s Export Plan, International Journal of Entrepreneurship, Vol. 11 Hanemann, L.P. (2006). An Assessment of the Export Competitiveness of the Banana,Mango and Mango Pulp Sectors in the State of Tamil Nadu. Paper for the World Bank, Abt Associates, Inc. (Available at: http:// www.farm2marketconsulting.com/projects/abt(india)-executive%20summary.pdf).
214 ASIAN JOURNAL OF DAIRY & FOOD RESEARCH Joshua N. Daniel and Prashant A.Dudhade. (2006). Analysis of Economic Characteristics of Value Chains of Three Underutilised Fruits of India. 2006, The International Centre for Underutilised Crops, Research Report No. 3 Kiilu Frederick M. and Samuel Wambugu M. (2001), Market Opportunities for Fruits and Vegetables Processing in Ukambani, Eastern Kenya, A Market Survey Report, USAID Singh, D., Lobsang W. and Prahalad, V.C. (2008). Processing and Marketing Feasibility of Underutilized Fruit Species of Rajasthan. Report presented at IAMO Forum 2008. Singh K. P., Srivastva A.K., Srinivas, S.R.K. and Gupta, H.S. (2007). Entrepreneurship Development in Agriculture through Agro Processing Centre: A Case study of Almora District in NW Himalaya. Accessed at: http://cigrejournal.tamu.edu/submissions/volume9/invited%20overview%20singh%20final%2013feb2007.pdf on 4/10/14 Shepherd, A.W. (2003) Market research for agro processors: Marketing extension guide, FAO of the United Nations, Rome, Italy,114 pp Xavier A S. R. (2008). An economic analysis of mango pulp agro based industry in Krishnagiri District, Tamil Nadu Political Economy Journal of India. 17(1-2),45. www.indianjournals.com