Commodities to brands: Marketing strategy for small cardamom; TDICI and Spices Valley Estates Limited

Abstract

This project has been undertaken for Spices Valley Estates Limited (SVEL) , a limited company engaged in the cultivation and processing of nearly 130 tonnes of small malabar cardamom. TDICI has a 49 % equity stake in this company. The main objectives of the market research were : *xx To examine the feasibility of launching a brand of cardamom xx If the above idea is feasible , to suggest a strategy for the launch of the brand. There is good demand for Indian cardamom both in domestic as well as international markets. The size of the domestic market for small cardamom is estimated at 3800 tonnes of which the household segment constitutes nearly 2750 tonnes. Cardamom is traditionally sold through auction houses which are located in the cardamom growing areas. The average price of small cardamom in Saklespur in 1992 - 93 was Rs. 440.75 per Kg. whereas small cardamom retailed for Rs 800 - Rs, 1200 per kilogram. This represents an attractive opportunity to the company to launch a quality product through the retail channel. The survey was conducted in Hyderabad and Bangalore . A study was also made of the marketing strategy of Manjushree Plantations Private Limited , a company which brands its produce of cardamom for the Indian consumers. It was found that this company has not been able to generate brand equity in the minds of the consumers. In fact nobody knows of the existence of this brand. The company has two packs - 250 gms and 5 Kg. Thus most of its cardamom is bought by retailers who unpack it and sell it. Manjushree’s USP is good quality.