Tomato Sauce

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Situational Analysis
Company Background
“Mom’s onion tomato chutney “was formed in around 1996 by Raj a fresher from IIM Trichy. After completing his second year project in sales he came to know that there was nothing in Indian industry in preservative industry. After graduation he started off with company with just 2 employees and 100Kgs of chutney , now he have around 1000 Employees and around 1000000KGs of annual chutney production .Raj have his plant installed in Bangalore and supplies chutney all over India. Price of 500Gm of chutney bottle he kept at 100 Rs.

In order to reach customers raj first delivered chutney on his own, after that he hired 100 employees with a delivery boys also. Raj rode economic and retail boom of India he struck a mega deal with BigBazaar to become nationally lovable in India. After that he signed one distributor who can reach about 1000 stores all over India. Marketing Strategies

Raj marketed “Mom’s onion tomato chutney” by the print media and word-of-mouth strategies to create his space. He also cracked a deal with BigBzaar, a biggest retailer in India at the time of 1996.

Factors inhibiting growth rate
1. Capacity : Production capacity of plant at Bangalore was just around 1000000Kgs. While the requirement from the market was around 2000000Kgs a year. 2. Raw material : Raw material needed for chutney is onion and tomato. If raj buys it through commission agent the prices will increase. And if he directly ask farmers to provide the tomato and onion he might save Rs.10 per KG of BoM. 3. Competition : As there was no one in the league Raj was happy to take the market lead alone. But now ITC and HUL entered the market with different strategies and lower price .

Marketing Analysis – Porters Five Forces
1.The threat of the entry of new competitors (High)
As the market study show that Indian segment lacks with the preservative products , companies like HUL and ITC introduced...
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