Spice Time markets a range of Indian food to intermediaries supplying the specialist retail sector and caterers within Birmingham as well the towns around. In addition Mr. Kumar, the MD has some continental customers in Italy in a small but growing export business. Now Mr. Kumar wants to fire up all cylinders and take a speedy growth route. He has already tied up with the smaller co-operative supermarket chain and second in line is Asda, the supermarket chain. If the tie up with Asda materializes then the likes of Tesco and Wal-Mart won’t be far behind. Though these hypermarket chains have their own set of menu items, yet Spice Time has the brand equity of being a specialty in Indian spices and Indian curry. This brand equity will definitely help it out in product differentiation and realizing the business goals.
Spice Time basically needs to market its products and the brand equity. Traditional marketing mix concept, first proposed by McCarthy in 1960, consists of Product, Price, Place and Promotion (better known as the 4Ps). But with time more Ps have been added to this list. Some of these are Public Relations, Political power, People, Physical evidence, Process and Packaging.
Product: Spice Time will have to come out with a quality product, as quality is now increasingly being used as a technique of product differentiation. Quality for a food item implies health and hygiene consciousness of highest standards as well.
Price: Pricing of the product forms another source of attracting and retaining the customers. If same quality product is available for a lesser price then customer will obviously prefer the alternative option. Since Spice time is making its foray into the market on such a scale for the first time, therefore it’ll have to take care of the pricing strategy. Penetrative pricing strategy seems to be the best option for pricing the products, particularly looking at the range of