Marketing

Introduction
Mahashay Chunni Lal Gulati setup the masala company in 1919 in Sialkot. It is associated
with Mahashay Chunni Lal Charitable Trust Mahashay Dharam Pal Gulati, the son of the
founder moved to Delhi after the partition of India. He opened a shop in a shack and
started selling spices like his father. He later opened his shop at Ajmal Khan Road, Karol
Baghand expanded from there. In 1959 he bought a plot in Kirti Nagar to set up his own
spice factory. MDH soon switched over to automatic machines to meet the fast growing
demand for MDH Spices. So much so today spices worth crores of rupees are
manufactured and packed by modern machines and sold throughout India and abroad
through a network of over 1000 Stockists and over 4 Lacs retail dealers. These machines
now have a capacity of producing 30 tones of spices in powders packed in beautiful
consumer pack of different sizes (10g to 500g) in a day
Swot analysis
Strengths in the SWOT analysis of MDH spices

The following are the strengths of MDH:
 First mover advantage : MDH was one of the first companies to realize
the scope of ready-made masalas and they pioneered the idea of
grinding spices and selling it in packets. This first mover advantage has
helped them establish their presence in the spices market globally.
 Leadership: The old man in a turban who appears in all packets and ads
of MDH even today is Mahashay Dharampal Singh the 84-year-old
promoter of the company.It is his vision and attention to detail that has
taken the company to success. He makes it a point to visit the company
every day even at this age and personally oversee operations.
 Strong Market Presence: MDH which is valued at Rs 300 crore is
a market leader with around 82 % share in the global market. The
company has around 45 varieties of blended and whole spices, and
exports to around 50 countries. The company manufactures and grinds
spices in five factories across India, employing around 1,500 people. The
company has a strong distribution channel of around, 1,000 distributors
and over 800,000 retail dealers.
 Quality: MDH has always been conscious of retaining the Indian-ness in
their spice blends and thus source their whole spices from authentic
vendors only. They also follow stringent quality norms in the griding and
drying of the spices and ensure that the smell and texture are retained
during packaging.
 Low pricing: A packet of MDH masala is priced between Rs 35 to Rs 50
making it the cheapest ingredient in a recipe. This makes the masala
affordable to everyone.
Weaknesses in the SWOT analysis of MDH spices
Some of the key weaknesses ofMDHare :
 Low Penetration In South India: MDH is perceived as a North Indian

Masala brand since most of their masala mixes cater to North Indian
taste and recipes like Rajma Masala, Pav Bhaji, Shahi Paneer or Chole
Masala. Though they have South Indian Spice Mixes like Sambar
Masala they are not authentic in taste and thus not popular.
 Brand Ambassador: MDH uses their promoter, Mahashay Dharampal
Singh as their brand ambassador. Though he may appeal to a niche
segment or an older North India audience when the business plans to
expand or penetrate into larger markets or target younger audience this
approach may not work.
 Poor presence in non- vegetarian category: MDH primarily focuses
on vegetarian spice mixes and they have the poor presence in the
ready to eat category as well. These are two areas where demand is
growing in India and this will affect their market share in the long run.
 Ingredients and composition: There are allegations of adulteration
and mixing of additives n masala powders and though there have been
no direct references to MDH like all other players in the market MDH is
also under the scanner for such practices.

4ps
Marketing Mix of MDH analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the MDH marketing strategy. The article elaborates the
pricing, advertising & distribution strategies used by the company.
Let us start the MDH Marketing Mix:
Product:
MDH spices is one of the most popular spices brand in India. MDH is known for its
expansive product portfolio in its marketing mix of ground spices and spice mixtures.
Some of its popular products are as follows: Garam Masala, Deegi Mirch, Rajmah
Masala, Sabzi Masala, Chunky Chaat Masala, Chana Masala, Kitchen King, Shahi
Paneer Masala, Kasoori Methi, Meat Masala, Dal Makhani Masala. Apart from
ground spices and blend spices, MDH also offers a number of recipe products and
other miscellaneous products like Dant Manjan, Kesar and Hawan Samagri
price
MDH faces stiff competition in the market despite being in the top two in terms of market
share. Hence, it aims to increase sales, and thereby revenue by selling higher volumes at an
affordable price. MDH is penetrating into the market by competitive pricing strategy so as to
maintain a firm hold on the consumer market. Apart from the exceptions, the prices of spices
vary from Rs. 25 to 70 for a 100-gram packaging, which is reasonable.
Place:
MDH moved its operations to Karol Bagh, Delhi after starting well at Sialkot. Apart from the
headquarters in Karol Bagh, the brand has many manufacturing plants in Gurgaon, Sojat,
Nagpur and even Sharjah. MDH earns a good amount of revenue from its exports to Japan,
UAE, Saudi Arabia, South-East Asia, Canada, U.K, Europe and the U.S. As of January
2018, it is reported to have around 1000 wholesalers and 400,000 retailers. The firm leaves
no touch point empty to reach the customers- be it local corner shops, convenience/discount
stores or supermarkets.
Promotion:
MDH has a unique selling proposition in terms of its quality and traditional yet distinct flavors.
It utilizes its USP in all its promotion campaigns. From television, print media to all its social
media handles- it has made its marketing communication in sync with its USP. Also, the
owner of MDH has become a known face with his appearance in the advertisement. The
company has taken up socially relevant projects and has developed Mahashay Chuni Lal
Trust. Also, it has opened schools and hospitals for the well-being of the people, thereby
maintaining a positive brand imagery. Hence this completes the marketing mix of MDH
spices.
Target market
MDH Masala started its operations as a small shop located in Sialkot
but after the partition of India moved its operations to Delhi and
opened a shop in Karol Bagh. Its headquarters base is in New Delhi.
With time MDH brand has grown in popularity all over India and has
started exporting its products to several global countries like Saudi
Arabia, UAE, Japan, South-East Asia, Europe, United Kingdom,
Canada and the United States.
Its manufacturing plants are fully-automatic and are located in

Gurgaon, Delhi, Nagpur and Sojat in India and overseas in Sharjah.
MDH Masala has a widespread distribution channel in India that
includes more than 400,000 retail dealers, 1,000 wholesalers and
super stockists so that products reach customers at every sale -point
via corner shops, local shops, discount stores, convenience stores,
supermarkets and hypermarkets.
Price in the Marketing Mix Of MDH Masala :

MDH Masala has targeted every household, restaurant, hotels
associated with food as its target customer by putting its onus on
traditions, purity and distinctive flavours. It faces stiff competition in
space industry from several rival brands. MDH Masala has
adopted competitive pricing policy because it wantsto maintain its
reasonable edge in the consumer market. It has kept product prices
affordable and pocket-friendly. MDH has also adopted a penetration
pricing policy because it wanted its products to reach every nook and
corner of India in both urban and rural sector. Both this policy have
helped in larger sales volumes and greater revenues for the company.
marketing objective
Price in the Marketing Mix Of MDH Masala : MDH Masala has targeted every household,
restaurant, hotels associated with food as its target customer by putting its onus on
traditions, purity and distinctive flavours. It faces stiff competition in space industry from
several rival brands.
TARGET MARKET STRATEGY

As MDH producing its new product that is aata so it has to target the market where
he lacks .generally branded aata is purchased in urban region not in rural area.So it
our target to capture the market rural as well as urban so that we cater the needs
and provide satisfication to customer along with getting market share.
And to provide the goods and services in the region where lacks so that market size
increases.
REFRENCES
 Financial Times 1999 – 2001. Various issues.
 Key Note. 2002. The Green & Ethical Consumer. Market Assessment.
 Varey, Richard. 2002. Marketing Communication. London: Routledge.
 4. Pickton, David and Broderick, Amanda. 2001. Integrated Marketing
Communications. Harlow:Prentice Hall
 5. Fitzgerald, Maureen and Arnott, David. 2000. Marketing Communications
Classics. London: Business Press, Thomson Learning
 Westwood, John. 1990. The Marketing Plan. London: Kogan Page Limited.

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Introduction

Strengths in the SWOT analysis of MDH spices

 Low Penetration In South India: MDH is perceived as a North Indian

Let us start the MDH Marketing Mix:

Its manufacturing plants are fully-automatic and are located in

Price in the Marketing Mix Of MDH Masala :

TARGET MARKET STRATEGY

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