Branding of commodities in Indian markets: Focus on rice and wheat flour industry

Abstract

The concern for hygiene and purity in food products is increasing among most of the consumers today. There is an emerging segment in the Indian population which is looking for convenience and quality when it comes to food items. Today the consumer is starved of time and is looking for more convenience which is akin to most value offered in minimum amount of time possible. Today’s customer is willing to pay a premium for trust which he/she develops in the brand. Hence a clear demand for brands. This gives an opportunity for the agri-business to command premiums, decrease the effect of prices on the commoditized agro-products and provides an opportunity for line extensions. On the other hand, the major players in the food’s business or agri-business face a plethora of challenges in trying to brand these commodities, in pricing them competitively and in convincing the consumers to pay a premium for the value added. Markets are more splintered, consumers are more fragmented, Indian market is all the more a heterogeneous market. Branding food commodities entail challenges in the entire supply chain. At every link in the supply chain, some value-adding variables can be a determining factor for the value proposition of the brand.