Gourmantra Case Study

MRK 317 IMC

Individual Assignment

10%

Due Date – Sunday, Nov 18th at 9m through Blackboard Safe assign.

INSTRUCTIONS: Read the case below and then answer the questions that follow

Please Note: It is important to do a field trip and visit a couple major food retailers (Loblaws, Sobeys, Metro) look at the competition for the product described below to be able to properly address the issues in this short case situation.

[pic 1]

The Spice is Right

It all started with a dinner party. Rachna Prasad promised to cook an authentic Indian meal for friends. The problem was, she didn't know how. As a second generation Canadian, Rachna had never learned traditional Indian cooking and planned to rely on her mother. Unfortunately (or perhaps fortunately), Mom was not available to help that day. Instead, Mrs. Prasad sent a few homemade spices to her daughter- along with detailed instructions on how to prepare, cook and assemble a meal.

She even sent along a shopping list.

Rachna's friends loved the meal and wanted to be able to make their own authentic Indian meals. Rachan gave them the leftover spice blends and the detailed instructions from her mother. Soon, demand grew from all their friends for the secret spice blends

To test the idea that there might be strong demand and  whether this could be a solid business concept for easy to prepare, authentic Indian food, Mrs. Prasad and her two business school educated daughters (Rachna and her sister Mona) booked a booth at the Markham Fall Fair in the north east area of Toronto. At the booth they povided samples of food  prepared from the secret spice blends to visitors at the fair. Within hours, the hand packaged spice blends had sold out.

Encouraged by this reaction to their product, they branded their product GOURMANTRA, hired a designer for the packaging and continued to develop the product for commercialization.

The initial GOURMANTRA product offering was a prepackaged blend of spices. Over 6,000 meal kits were sold and approximately 25,000 people were introduced to GOURMANTRA through word of mouth promotion and sampling programs all over Southern Ontario. The Prasads also started the long, hard process of obtaining distribution in the retail market by talking to smaller grocery chains like Longo's and Galati’s.

The Prasads collected consumer feedback, which while mostly very favourable, indicated that many consumers did not understand how to use the spice packets and did not know where to buy some of the ingredients - like Basmati rice. The Prasads made a strategic decision and completely revised the product offering from just a spice packet to an entire Indian meal kit (except meat). The kits included a package of spices, a package of Basmati rice, and other pre-measured sauces and ingredients.

There are several flavours/versions, including Butter Chicken, Tandoori, and Channah. All the customer has to do is add chicken or beef, and, in some cases, yogurt. Priced at $4.49, the kits allow customers to cook authentic Indian meals in 3 minutes or less and feed a family of four for less than $13.00.

According to an experienced packaged goods marketing executive, GOURMANTRA will stimulate a new direction in the grocery industry because it targets the busy household that does not have the time to cook but does not want to rely on perceived 'unhealthy' fast food or take out. Rather, these households wish to 'assemble' their healthy home cooked meals as easily as possible. But this executive also commented that “promotion is critical, the consumer has to first understand the nature of the product and why it is unique," GOURMANTRA is further uniquely positioned because it taps into growing ethnic markets and the trend for more ethnic, diverse experimentation in food.

The launch of this product line was accompanied by a very modest, simple communication/advertising plan – in store promotion, taste testing, sampling programs, outdoor advertising, some local radio ads and very limited social media (Facebook Page).

However after a few months, the launch was suspended because distribution objectives were not achieved and the product had only limited distribution in a few retail outlets and smaller chains in Ontario.

Since the initial launch a few years ago, the market has become much more competitive:

https://www.pataks.ca/categories/cooking-sauces

https://www.oldelpaso.com/products/dinner-kits

In addition, new online companies have emerged targeting young, time - starved professionals, who will pay for the convenience of healthy food either prepared or assembled delivered to their home…for example here are some new indirect competitive brands distributed exclusively online.

https://www.chefsplate.com/p/adwen50?gclid=EAIaIQobChMI9PfhpbDK3gIVGY_ICh1yHwxFEAAYBCAAEgIaNvD_BwE

https://www.makegoodfood.ca/en/home

https://www.hellofresh.ca/

New investors have arrived to back the Prasads and they are planning an Ontario relaunch of the Gourmantra line in the Spring 2019. The investors will underwrite a $750,000 Adverting Budget for the 1st year. It is also critical that distribution objectives be achieved quickly before consumer advertising and promotion begins.

[pic 2]

Questions:

1. (10 Marks)

• Who is the main Target Market for Gourmantra? Describe them in some detail and discuss why you think Gourmantra will appeal to them.

The main target group of Gourmantra are who like to eat Indian food and people who like to learn how to cook Indian food with less effort.