Harvey, Kathryn (1995) Opportunities for marketing chilled Indian samosas in Australia. Coursework Master thesis, Victoria University of Technology.

Abstract

The objectives of this paper are to: • quantify the market size for chilled samosas; and • evaluate the feasibility of manufacturing chilled samosas in Australia. For this purpose, feasibility was determined on the following indices: • minimum return of investment of 10% per annum; and • minimum net profit of $A100,000 per annum from the fifth year of operation. The research was completed through literature review and field research. The research concluded that food products which offer greater convenience are becoming popular in Australia. This trend appears to be the outcome of changing demographics such as increased participation in the labor force (particularly by women), a trend towards two income households, smaller households and increasing ethnic composition in the population. Additionally, greater health-consciousness has increased the demand for fresh, healthy, high quality and conveniently available foods requiring minimal preparation. This research suggests that the consumers of chilled samosas will come from diverse ethnic backgrounds and will have the following characteristics: • High consumers of take-away foods; • Australian or second generation Australian; • 20-54 year age class; • Open minded attitude towards their food; • Seekers of 'Fresh' food; • Live in the inner suburbs. The research posits that because Indian foods have a strong flavour and smell, the key purchase determinants will include the consumer's familiarity with Indian foods and their attitude towards the taste and flavour of Indian foods. Supermarkets in Australia are conveniently positioned in most suburbs to service customer needs However, the majority of convenience foods products sold in supermarkets are frozen products. Generally the marketing of chilled foods is in the embryonic stage. The market is localised and the product range is limited. The analysis shows that the demand for chilled samosas in Australia can range from 19.5 million units (best case scenario) to 600,000 units (worst case scenario). This study suggests that with start-up annual sales of 450,000 units, this business generate a return of investment of 11.55% per annum on an investment of A$1.3 million. This study recommends that the market for chilled samosas be segmented into six distinct target markets - variety seekers, healthy choice, lifestyle, Indian children, Authentic Indian and conservatives. However the positioning of chilled samosas should not be developed over too narrow a market due to the small Australian population. Consequently the positioning of chilled samosas through supermarkets should initially cut across a number of the identified segments (variety seekers, healthy choice, lifestyle, Authentic Indian and conservatives) by focusing on the large consumer segment in the marketplace of people who are time poor, seeking fresh quality foods with flavour that are easy to prepare prior to consumption in their home, and w h o are prepared to spend their income on purchasing such conveniences (subsets of the segments listed above). The product should be positioned by focussing on quality, freshness and authenticity. Packaging should be distinctively Indian and clearly branded. The chilled samosas should initially be sold through the delicatessen section of supermarkets by utilising food brokers to distribute the products nationally and manage in store logistics. Samosas should be sold in packs of two and four at approximately 60 cents per samosa for the first three years to facilitate product trials. Promotions should focus on regular taste testing in supermarkets.

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