The case study entailed strategizing the formalization of the Jaggery (Gud) industry in India and suggesting holistic, sustainable changes in the long term.
Goal-
formulate the plan to improve on the pain-points of the jaggery manufacturers. The objectives are to investigate and establish the nutrition benefits of jaggery, to understand the current and future market, and develop value-added products from jaggery. What would it take for jaggery to expand its market and come back to being the traditional sweetener?
2. Brand Name: GUDNESS
Vison and Mission : To promote
good health and healthy eating
habits among our customers by
selling Jaggery and jaggery based
products. To Expand the jaggery
market in India.
Marketing Campaign
Marketing Goals
• To establish GUDNESS as a brand
aiming to promote good health by
providing quality jaggery based
products.
• To make GUDNESS synonymous
with quality jaggery .
Size of Food Services Market
Slogan : Gud Lao Cheeni Htao
We will launch a brand. Our Brand will
deal in selling jaggery and value
added jaggery added products.
Product Relevant for Uses
Jaggery Blocks All households Multipurpose Use
Jaggery Powder Tea lovers Direct sugar substitute
Jaggery Spread Jam Mothers and hostel/PG
people
Used for sandwiches and
salads
Jaggery Rum All Alcohol drinkers Substitute for normal rum
Value added Range
1) Protein Enhanced
2) Vitamin
Enhanced
3) Medicinal
(Ginger,
cardamom)
This range will be very
relevant for people who
love sweets but are also
paranoid about health.
We will provide them
extra benefits to them.
Relevant for sweet
tooth but health
conscious
Used to replace a lot of
confectionary items
Jaggery Butter All types of cook who
would like to use butter
Cooking
Campaign
With our wholistic campaign, we aim to cover all
customer touchpoints in their buyer’s journey.
We will keep our communication consistent to build the
brand.
Blog: Creating Awareness about the products and its
benefits
Purpose: Traffic generation for the blog
KPI: We will link our blog with google analytics and track
the average page per time, leakages , bounce rate etc.
YouTube Influencer: Creating the buzz around the brand
Purpose: Link them to our website store
KPI: Conversion of new customers
Instagram influencer: Food is best displayed my vivid
attractive images
Purpose: awareness and need generation
KPI: creating earned media
Social media : We will use our social media to complete
the user journey. Paid Facebook ads with target traffic
generation. We will post witty copy to compliment this.
Point of sale: we will start with our website based store
linked via our Instagram page, Facebook page, blog and
YouTube via influencers. We will apply to sell on amazon
and Flipkart to increase our network.
Offline: We will start with kiosks setups which will have a
QR code to redirect to our website, in malls to provide
samples of our jaggery products and take details of
people who are interest in the product to approach them
for complete feedback and surveys.
A study in over 30,000 people found that
those who consumed 17–21% of calories from
added sugar had a 38% greater risk of dying
from heart disease
~ Healthline.com
38%
For packaging the company will use
packaging that has a premium look and
feel to it. As the product is aimed mainly
towards urban customers, this will help in
brand recognition, retention and recall.
The color scheme will be based on the
colors of jaggery itself, from brown to a
mix of gold and brown .
This will be pour
brand LOGO
3. Segmentation
Broad Segment Cohorts
• Households
(Middle Class)
Persona:
Name: Siddharth
Age: 28
Personality:
Wakes up with
morning tea, a
tea aficionado
Subconscious
aim: Improve
health
A) Tea lovers
India consumes 1090 Million Kg of tea in
2019. Our aim with this cohort is to
derive the major usage of jaggery by
replacing usage of sugar in tea.
Tea is a major daily consumes item
which contains sugar.
B) Sweet Tooth but health conscious
This cohort is those people who love
eating sweet food but are increasingly
becoming health conscious
• Women
Persona:
Name: Renuka
Age: 36
Mother of two
kids, increasingly
worried about
their eating habits
and pattern.
Aim: Wants to
give her kids
nutritious and
tasty tiffin for
school lunch box.
A) PCOS Women
Polycystic ovary syndrome (PCOS) is a
hormonal disorder common among
women of reproductive age. 20%
women in India that is about 13 crore
women face the problem. According to
Celebrity nutritionist Rujuta Diwekar,
Jaggery helps with enlarged pores on
skin.
B) Super Moms
Parents are getting more worried about
what their children consume and want
to feed them nutritious food while
keeping its taste intact. This cohort will
derive our value added products like
Jaggery spread, jaggery butter, jaggery
jam.
Targeting
Initial Place of launch : Delhi
Why : Proximity to Uttar Pradesh
Service Addressable Market:2900K+
How :
• Targeted Facebook Ads
• YouTube Influencers
• Instagram Influencer
• Food Blogs
We will use Content Marketing in
forms of Moment Marketing and
infographic marketing on our social
media handles with witty copy.
Rick Prefers
GUDNESS Jaggery
powder over sugar
for his tea.
Rick cuts on extra
calories.
Sample Ad for Social Media
Strategy
• As our brand is very much focused on health
benefits, we will start an awareness blog to
talk about health benefits of having jaggery.
• We will run paid targeted ads on Facebook
using witty copy and images with CTA as our
blog link, redirecting the traffic to our blog
• Influencer Marketing :
• We will use YouTube Influencers who are
home cooks to promote our brand as our
product will mostly be used by everyday
people
• Nisha Madhulika –A 61 year old mother of
two, she will use our jaggery products to show
ease of usage of products YouTube channel
has 8.34 million subscribers. She is relevant as
her demographics fall completely in sync with
our target cohorts.
• Bhartzkitchen- Bharat a young adult guy, with
5.89 million subscriber, known to innovate
traditional recipes. He is relevant as it will give
our value added products a place in regular
households.
• Instagram Influencer: passionate about
baking, Instagram influencer with 132K
followers. Focuses on healthy baking. She is
relevant as she gives a sweet tooth angle to
our product which falls in sync with our
cohort, Sweet tooth but health conscious.
Size of women segment in Delhi
4. PROCUREMENT TRANSPORTATION WAREHOUSING
The jaggery will be
sourced from the
cottage industry
The products are
transported to
GUDNESS plant(s)
using refrigerated
mini vans (Picture
below)
Once out of the
factory, it goes into
the warehouse,
where the items are
kept there until they
are ready to be
moved
Sugarcane
Farmer
Jaggery
maker
The company
(Gudness)
Value Added
Product 1
Value Added
Product 2
The Procurement Flow
Warehouse
The Distribution Network
Plant (Gudness)
Delivery/Logistics
Partner
End-Customer
Name of the
logistics partner
Average price
per 500 gm
parcel
India Post Rs. 40
Delhivery Rs. 65
DHL/Blue Dart Rs. 70
DTDC Rs. 100
First Flight Rs. 40
FedEx Rs. 70
The distribution network will entail tying up with a logistics solution provider who
will be able to dispatch and deliver the products as quickly, as cheaply and as
satisfactory (quality wise) as possible. For calculation, the distance between the Pin
Codes 110027 and 700055 is taken (distance: 1522 Km). This will give an idea of the
maximum possible delivery costs that might be incurred. All price data taken from
official websites of these logistics providers.
Looking at the table, India Post and First
Flight seem to be worthy options as
logistics partner. There are other viable
options as well. For eg- Ecom Express is a
company that only delivers logistic
solutions at cheap prices. Their base price
is Rs. 22 per 500 gms.
The Process Flow
Final options for logistics partners-
Ecom Express First Flight Blackbuck India Post
Delhivery Rivigo
Initially, our plant will follow a Job Shop
approach due to limited demand and
quantity machines available (maximizing
utilization). It will move on to Batch
Production process enabling better
Quality Control and greater flexibility in
product designs. Having future product
expansion plans, the optimum production
process would be the intersection
between Batch and Mass Production
giving scope for Lean and Six Sigma (pic)
Once a jaggery maker
spends enough time with
Gudness as a partner
delivering high quality
jaggery, that jaggery maker
will be incorporated into the
company supply chain by
providing new machineries,
skilling of workers, knowledge of sugarcane industry etc.
5. Industry Analysis
Financials
• i) We have created financials for the complete supply chain
• ii) Sourcing sugarcane from farmers conversion to jaggery by
cottage industry and finally coming to GUDNESS.
• iii) Average margin obtained by cottage industry jaggery
producers are 8-10% as per our secondary research. We have
increased their margin to 15% in our financials.
• iv) We believe this would be possible as we are converting as
unorganised business into an organised business by
streamlining operations and marketing.
• v) We have calculated monthly breakeven sales according to
relevant assumptions for business.
• VI) Marketing Costs are also included.
Calcium- 40-100 mg Vitamin A- 3.8 mg
Magnesium- 70-90 mg Vitamin B1- 0.01 mg
Potassium- 1056 mg Vitamin B2- 0.06 mg
Phosphorous- 20-90 mg Vitamin B3- 7 mg
Sodium- 19-30 mg Vitamin B5- 0.01 mg
Iron- 10-13 mg Vitamin B6- 0.01 mg
Manganese- 0.2-0.5 mg Vitamin C- 700 mg
Zinc- 0.2-0.4mg Vitamin D2- 6.50 mg
Proteins- 250mg Vitamin E- 111.3 mg
Nutrition Benefits of jaggery will be displayed behind
every pack (100 gm)
The micro-nutrients present in jaggery possess anti-toxic
and anti-carcinogenic properties. Magnesium in jaggery
strengthens the nervous system, and potassium maintains
the acid balance in cells. Jaggery is rich in iron and helps
prevent anemia in women. Its intake in the diet can prevent
the atmospheric pollution related toxicity and may have a
role to reduce the chance of lung cancer
6. • Farmers
• Cottage Industry
(Jaggery Makers)
• Logistics Partner
• Warehouse
Owners
• Social Media
Influencers
• Retailers
• Packaging
solution providers
• Sourcing High
quality Jaggery
• Delivering timely to
customers
• Maintaining
Stakeholders
• Farmers
• High quality
Jaggery (Raw
Material)
• The supply chain
• Earned Media
• Providing Value to
farmers and cottage
industries in form of
increased margins
• Providing Value to the
customers in form of
nutritious value added
jaggery products
• Adding Value to
society by making
them aware about
health benefits of
jaggery
• Making customers
healthy and fit
• We will address all
the grievances via our
website helpline. Chat
bot and Email will be
primary
• We have two broad
customer Segments
• Households
• Ageing Women
• We have four
cohorts under these
two broad segments
• Tea lovers
• Sweet tooth but
health conscious
• PCOS women
• Super Moms
• We will launch
exclusively online
initially including
ecommerce
• We will roll out to
retailers like big bazaar,
Reliance fresh in future
• Primary Source of revenue will be product sales from
our channels
• In future we will run ads on our website and blogs for
revenue
• After being established as a brand we will strengthen
the revenue base with affiliate marketing
• Primary cost will be of sourcing jaggery from
trusted sources
• Carrying and Holding cost of Inventory
• Marketing Cost for Influencers and paid ads
• Distribution cost
• Warehouse maintenance and rent