Abhi - Assignment #4 - Research Report

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351 Military Trail Toronto, Ontario M1E 4E5 August 12, 2023 Dr. Albert Christmann Chairman, Dr.Oetker 2229 Drew Road Mississauga, ON, L5S 1E5 Canada Dear Mr. Christmann, I hope this message finds you well. I am writing to express my enthusiasm for the recent research we conducted regarding the potential export of Dr. Oetker's exceptional food products to the Indian market, all the way from our home base in Canada. We looked at a variety of popular products, including baking powder, cake mixes, frozen pizzas, puddings, and cake decorations. Through thorough market research, we have discovered a sizable market opportunity for Dr. Oetker in India, where there is an increasing need for high-quality food products that are consistent with the reputation for excellence of our brand. India is a fertile ground for our offerings due to its diverse culinary landscape and growing middle class with more disposable income. According to our research, there is a big demand for the taste and convenience that our products offer, and we think we can win a sizable portion of this market. For your review, I've included a detailed copy of the research report. Local preferences, distribution options, regulatory issues, and potential rivals have all been taken into account. As we formulate our strategy for this exciting endeavor, your opinions and feedback on the report would be extremely helpful. I appreciate your support and look forward to hearing what you have to say about this. Regards, Abhiram Reddy Venna Global Business Management Centennial College Tel: 414-321-5967 Email:

Report on market research on Dr. Oetker exporting food products from Canada to India Abhiram Reddy Venna Summary Company name: Dr. Oetker Company website: http://www.oetker.ca/ Product/service: Food products like baking powder, cake mixes, sugar decorations and more Case study link: https://www.international.gc.ca/world-monde/stories-histoires/2019/CPTPP- oetker.aspx?lang=eng Export market/country: India Potential buyer(s): Catering, hotel industry and commercial kitchens in India Secondary data sources: 1. Export Development Canada 2. The Canadian Trade Commissioner Service 3. Global Affairs Canada 4. McKinsey & Company 5. Times of India Objective #1 Data (primary) : Gather data on Indian customer’s taste preferences, packaging and presentation preferences, customization needs and environmental concerns Purpose : in order to design product development strategy for exporting their food products Methodology (primary data collection method) : Survey with 1,000 customers from broad range of residential customers Business recommendation : Dr. Oetker can adapt their product offerings based on Indian preferences, ensuring flavors, packaging, and ingredients align with local tastes and expectations Objective #2 Data (primary) : Collect data on Indian residential customer’s most preferred purchasing outlets for baked goods Purpose : in order to determine which purchasing outlet can capture the highest market Methodology (primary data collection method) : Market observation of purchasing behavior and preferences of the Indian customers Business recommendation : Dr. Oetker should opt for online channels and catering services Objective #3 Data (primary) : Gather data on preferred packaging and presentation and which marketing media can reach a wider audience and is popular in India Purpose : in order to formulate an effective marketing strategy that resonates with the local tastes Methodology (primary data collection method) : In person focus groups with 5-9 Indian residents Business recommendation : Adapt Dr. Oetker’s product packaging to align with Indian

preferences, use of social media with engaging content and partner with local food influencers for endorsements. Introduction Dr. Oetker is known for its baking powder, frozen pizzas, and other food goods, and its sights are set on increasing exports to India (Global Affairs Canada, 2023a). India offers a tempting market potential because of its large population and strong food demand, further driven with possibility of Canada and India closing in on signing a trade deal focused on certain industries to build a resilient trade relation with one other (Financial Post, 2023). Due to India's participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which streamlines the export procedure, Dr. Oetker is in an excellent position to take advantage of this opportunity (Global Affairs Canada, 2023b). Dr. Oetker can create market strategies supported by insightful data by combining readily accessible secondary data with primary data from surveys and interviews with consumers and importers in the Asian-Pacific area. Dr. Oetker maintains a commanding position in the Indian food business through their dedication to competitive intelligence and product innovation, maintaining one step ahead of competitors and continually satisfying customer requests. There was also event held recently, Team Canada Trade Missions (TCTM), which was Minister-led to enhance trade mission and strengthen the Canada’s Indo-Pacific Strategy and focus on several potential sectors including the food industry, this is also indicates that Canada continues to strengthen the relationship they have with India giving Dr. Oetker an opening to enter the market (The Canadian Trade Commissioner Service, 2023). Although there is an opening there is also risks involved for Dr. Oetker like how the global growth rate is expected to only reach 2.4% in 2023 due to the depreciating value of Canadian dollar indicating many challenges for Dr. Oetker as an exporter (Export Development Canada, 2023) Ristorante Pizza Mozzarella Renate und ihr Osterhase Photos: (Dr. Oetker, 2023) Background

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The rising demand for convenient and high-quality food products, such as baking powder, cake mixes, frozen pizzas, puddings, and cake decorations, is reshaping food consumption in India ( Prakash, Singh, & Yadav, 2018) . Urbanization and changing lifestyles drive this shift, paralleling the advancements seen in indoor farming. Innovations in processing, packaging, and distribution cater to diverse tastes, addressing food security concerns. Urban Agriculture, akin to vertical farming, offers solutions by enabling efficient urban food production (Times of India, 2020). These modern food items are well-suited for convenience-seeking urban populations, aligning with evolving preferences (McKinsey & Company, 2022). To capitalize on this trend, reaching a broader audience is essential. Similar to indoor farming's market penetration, targeting urban consumers and leveraging suitable distribution channels is key. Overall, understanding and embracing these trends position businesses like Dr. Oetker for success in India's market, meeting evolving needs while contributing to a sustainable food ecosystem. Research Objective 1. To identify Indian customer’s taste preferences, customization needs and environmental concerns in order to design product development strategy for exporting their food products. Dr. Oetker's research objective is to comprehensively understand Indian customers' preferences in taste, packaging, presentation, customization, and environmental concerns. The survey, targeting 1,000 diverse residential customers, aims to inform a tailored product development strategy for the Indian market. By aligning flavors, packaging, and customization with local needs and addressing environmental considerations, Dr. Oetker aims to increase market acceptance and successfully export from Canada to India, meeting the unique demands of Indian consumers while embracing sustainability, a vital factor in today's conscientious market. 2. To identify Indian residential customer’s most valued purchasing outlet in order to determine which purchasing outlet can capture the highest market share. Dr. Oetker's research objective for their export strategy to India is to determine the most preferred purchasing outlets for baked goods among Indian residential customers. This objective aims to identify the outlet with the potential to capture the highest market share in India. They plan to achieve this by directly observing Indian customers' buying behavior and preferences. Understanding where Indian consumers predominantly purchase baked goods will enable Dr. Oetker to strategically align their distribution and market penetration approach. This alignment with preferred purchasing outlets will enhance product visibility and accessibility, increasing the likelihood of capturing a significant market share in India. By ensuring their baked goods are available where Indian consumers prefer to shop, Dr. Oetker's export strategy will be better positioned for success in the Indian market. 3. To gather data on preferred packaging, presentation, and marketing media in order to

formulate an effective marketing strategy to capture and resonate with a wider audience. The research objective for Dr. Oetker's export strategy from Canada to India is to gather insights into Indian preferences for packaging, presentation, and effective marketing media. The primary goal is to formulate a targeted marketing strategy that resonates with local tastes, increasing the likelihood of successful market entry and attracting a wider Indian audience. The objective involves conducting in-person focus groups with 5-9 Indian residents to directly understand their packaging and presentation preferences. Discussions will also uncover popular and effective marketing media in India, identifying channels that can reach a broad audience. Ultimately, the research aims to create a tailored marketing strategy aligned with Indian preferences. This approach ensures that packaging, presentation, and marketing efforts resonate with local consumers, enhancing Dr. Oetker's ability to engage a diverse customer base in India. Methodology 1. Secondary Data: For our research on Dr. Oetker's food product export, we've leveraged a diverse set of reputable sources to ensure a comprehensive understanding of the market dynamics in India. We extensively studied reports from recognized organizations such as Export Development Canada and the Canadian Trade Commissioner Service, both known for providing valuable market knowledge, export assistance, trade advice, and up-to-date international trade news. Additionally, we sourced information from trusted financial and economic platforms, including Trade Data Online, to gain insights into relevant economic indicators and trade data that impact the food industry in India. Moreover, we utilized reliable local news sources like the Times of India to capture on-the-ground trends and consumer behavior, providing valuable context for Dr. Oetker's export strategy. By combining data from these sources, we aimed to ensure a well-informed and comprehensive approach to shaping Dr. Oetker's successful entry into the Indian market. 2. Primary Data: a. Survey Conduct an extensive survey of 1,000 diverse Indian residential customers to design Dr. Oetker's product development strategy for exporting Canadian food products to India. The survey aimed to uncover insights into Indian preferences for taste, packaging, presentation, customization, and environmental concerns. Direct feedback from a wide range of customers can help identify favored flavors, packaging styles, and customization needs, enabling tailored offerings. Addressing environmental concerns ensures alignment with local values. The goal is to provide actionable insights guiding Dr. Oetker in crafting a market- responsive strategy that resonates with Indian consumers, optimizing market entry and product acceptance. b. Market Observation

For Dr. Oetker's export strategy to India, we're conducting direct observational studies to gather primary data on the most preferred purchasing outlets for baked goods among Indian residential customers. This approach aims to pinpoint the outlet with the potential to capture the highest market share. By closely observing where Indian consumers predominantly buy baked goods, we aim to provide valuable insights that guide Dr. Oetker's distribution and market penetration strategy. Identifying the favored purchasing outlet ensures that Dr. Oetker's food products are optimally positioned in locations resonating with Indian customers, increasing the likelihood of significant market capture. This research approach enables data-driven decisions, enhancing the effectiveness of the export strategy, and ensuring Dr. Oetker's food products are accessible to Indian consumers through outlets aligning with their preferences. Our goal is to maximize Dr. Oetker's success in the Indian market, establishing a robust presence for their food products. c. In-person Focus Groups Dr. Oetker is focusing on developing a successful marketing strategy for exporting food products from Canada to India by gathering primary data on preferred packaging, presentation, and effective marketing media. Through in- person focus groups with 5-9 Indian residents, the research aims to understand Indian consumers' packaging and presentation preferences, identifying styles, design elements, sizes, and overall presentation that resonate with Indian customers. The research also aims to identify popular marketing media in India, such as television, digital platforms, social media, or print, through focus group discussions. The primary goal is to tailor the marketing strategy to local tastes, guiding packaging, presentation, and the selection of influential marketing channels to maximize Dr. Oetker's export success by authentically connecting with the Indian audience. Data Analysis 1. Product Preferences The data analysis aimed to understand Indian customer preferences for Dr. Oetker's food products, including taste preferences, customization needs, and environmental concerns. A nationwide online survey with 1,000 Indian consumers revealed a strong preference for fruity flavors, with mango and strawberry being the top choices at 72% and 64%, respectively. Chocolate-based products also garnered significant favor, with 58% expressing a preference for such flavors. Packaging design was emphasized, with 78% of respondents valuing visually appealing packaging and 65% favoring convenient, individual serving-sized packages. Customization options were highly desired, with 85% of respondents expressing interest in customizable pizza toppings and 63% requesting personalized cake decoration options.

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A growing environmental consciousness among Indian consumers was also highlighted, with 74% indicating a preference for minimal plastic packaging and 68% considering eco-friendly packaging important. This underscores the need for sustainable packaging practices to align with Indian consumers' environmental concerns. Mango Strawberry Vanila Chocolate 72% 64% 32% 58% Which is your most preferred flavor for baked goods? Figure 1: Findings from survey on which is the locals most preferred flavor for baked goods. 2. Purchasing Outlet This data analysis aims to understand Indian residential customers' preferences for purchasing outlets of baked goods and identify the most suitable distribution channel. Market observation was conducted across various cities in India, revealing that local bakeries and supermarkets are the most preferred outlets for baked goods. Local bakeries accounted for 40% of the observed purchases, followed by supermarkets with 35%. Online delivery platforms secured 15%, while 10% preferred purchasing baked goods from hypermarkets. The data highlights the importance of strategic partnerships with local bakeries and supermarkets as key distribution channels for Dr. Oetker's food products in India. Collaborating with these outlets can ensure wide accessibility and capitalize on their preference for convenience and freshness. The substantial share of online delivery platforms indicates the growing potential of e-commerce for baked goods in India. Dr. Oetker can leverage this trend by establishing a strong online presence and partnering with popular delivery platforms, aligning with changing consumer behavior in the Indian market.

40% 35% 15% 10% WHICH OF THE FOLLOWING IS YOUR the most preferred outlets for baked goods? Local Bakeries Supermarkets Online Delivery Hypermarkets Figure 2 Findings from market observation on which is the locals most preferred purchasing outlet for baked goods. 3. Marketing Media and Packaging This data analysis report aims to understand Indian customer preferences for packaging, presentation, and marketing media for food products. In-person focus groups were conducted with 5-9 Indian residents, revealing that 82% prefer vibrant and visually appealing packaging, 67% prefer individual serving-sized packages, and 54% prefer transparent or windowed packaging. Television remains the most popular marketing medium among Indian consumers, with 76% noting it as their primary source of information. Social media follows closely, with 64% indicating its importance. Regional language advertising on television and regional social media platforms gained prominence, catering to diverse linguistic preferences in India. The data suggests that visually appealing, convenient, and transparent packaging is crucial to attract Indian customers. The prominence of television and regional social media platforms highlights the significance of targeted and localized advertising to resonate with the diverse Indian audience. The findings emphasize the importance of designing food product packaging that aligns with Indian preferences for vibrant, individual-serving, and quality-focused packaging. Dr. Oetker should prioritize packaging that clearly showcases freshness and convenience, and a strong presence on television and regional social media platforms, tapping into localized language preferences.

40% 33% 27% WHAT TYPE OF PACKAGING IS MOST APPEALING TO YOU? Vibrant Packaging Individual serving-sized package Transparent Packaging Figure 3: Findings from focus group on which type of packaging is most appealing to the locals. Business Recommendations 1. Product Preferences: Focus on incorporating localized flavors and eye-catching packaging Dr. Oetker should develop a product development strategy that caters to the unique tastes and values of Indian consumers while exporting from Canada to India. To achieve this, Dr. Oetker should incorporate localized flavors, eye-catching packaging, single-serving convenience, customization opportunities, and sustainable packaging. By incorporating these recommendations, Dr. Oetker can effectively export its food products from Canada to India, ensuring that their products are tailored to meet the specific preferences of the Indian market. This approach will increase the likelihood of a positive reception and market penetration. The combination of localized flavors, appealing packaging, convenience, customization, and sustainability will position Dr. Oetker as a brand that aligns with Indian tastes and values, paving the way for a successful entry into the Indian market. 2. Purchasing Outlet: Focus on local bakeries and supermarkets The data analysis reveals that local bakeries and supermarkets are the most preferred purchasing outlets for baked goods among Indian residential customers, accounting for 75% of observed purchases. This indicates that Dr. Oetker should prioritize strategic partnerships with these outlets to capture the highest market share for their food products when exporting from Canada to India. Additionally, the high percentage of purchases

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from online delivery platforms (15%) presents a valuable opportunity for Dr. Oetker to tap into this segment. A strong online presence and partnerships with popular delivery platforms will allow Dr. Oetker to reach a broader audience and cater to evolving consumer behavior in India. Hypermarkets, which contributed 10% to the observed purchases, have a smaller share compared to local bakeries and supermarkets. However, it is crucial to monitor hypermarkets as they can still play a role in Dr. Oetker's distribution strategy, especially if the company decides to diversify its retail channels. In conclusion, local bakeries and supermarkets are the most suitable purchasing outlets for Dr. Oetker's baked goods in India, aligning with Indian customers' preferences for convenience and freshness. 3. Marketing Media and Packaging Dr. Oetker should focus on a marketing strategy that leverages television and regional social media platforms to effectively reach the Indian audience which has also seen an actual rise in India and is considered as India’s most preferred media (Bloomberg, 2023). With 76% of participants identifying television as their primary source of information and 64% highlighting the importance of social media, these two channels offer the most significant impact. To make the packaging strategy successful, Dr. Oetker should prioritize visually appealing packaging that aligns with Indian preferences. Transparent or windowed packaging can satisfy 54% of participants who expressed a preference for packaging that showcases these attributes. Additionally, investing in localized advertising content for both television and regional social media platforms will enable Dr. Oetker to connect with a broader range of consumers and enhance the effectiveness of their marketing efforts. In conclusion, Dr. Oetker should focus on visually appealing and individual-serving packaging, along with a robust marketing presence on television and regional social media platforms, to significantly enhance their chances of successfully exporting food products from Canada to India and capturing a wide and diverse Indian customer base. Conclusion The extensive research conducted for Dr. Oetker to understand Indian customer preferences and market dynamics, providing valuable insights for their export strategy from Canada to India. The data analysis revealed a strong preference for fruity flavors like mango and strawberry, as well as chocolate-based products. The focus on visually appealing packaging, convenient single-serving sizes, and transparent packaging aligns with the convenience-seeking nature of Indian consumers. Customization options, such as personalized pizza toppings and cake decorations, cater to the growing demand for unique food experiences. The emphasis on environmentally friendly packaging aligns with the global trend towards sustainability and responsible consumption. Local bakeries and supermarkets are the preferred purchasing outlets for baked goods among Indian residential customers, providing strategic directions for Dr. Oetker to establish partnerships and

ensure accessibility to their products. To effectively reach the Indian audience, Dr. Oetker should leverage television and regional social media platforms for marketing, tailoring advertising content to regional languages. By resonating with local tastes, values, and preferences, Dr. Oetker can capture a significant share of the Indian market and establish a strong presence, contributing to both their export success and the evolving food landscape in India.

Reference: 1. Bloomberg. (2023). India Plans Sweeping Overhaul of Digital Law as Market Swells. https://www.bloomberg.com/news/articles/2023-05-24/india-plans-sweeping-overhaul- of-digital-law-as-market-swells#xj4y7vzkg 2. Export Development Canada. (2023). Global Export Forecast—Spring 2023 . https://www.edc.ca/en/guide/global-export-forecast.html 3. Financial Post. (2023). Canada and India edge closer to signing trade deal focused on a few industries, minister says . https://financialpost.com/news/economy/canada-india- early-stage-trade-deal 4. Global Affairs Canada. (2023a). Dr. Oetker’s $200-million investment in Canada spurs exports. https://www.international.gc.ca/world-monde/stories-histoires/2019/CPTPP- oetker.aspx?lang=eng 5. Global Affairs Canada. (2023b). Minister Bibeau's G20 Mission to India strengthens ties with this key partner . https://www.canada.ca/en/agriculture-agri-food/news/2023/06/minister-bibeaus-g20- mission-to-india-strengthens-ties-with-this-key-partner.html 6. Prakash, G., Singh, P. K., & Yadav, R. (2018). Application of consumer style inventory (CSI) to predict young Indian consumer’s intention to purchase organic food products. Food quality and preference , 68 , 90-97. https://www.sciencedirect.com/science/article/abs/pii/S0950329318300661 7. McKinsey & Company. (2022). The state of grocery retail in India . https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the %20state%20of%20grocery%20retail%20in%20india/the-state-of-grocery-retail-in- india.pdf 8. The Canadian Trade Commissioner Service. (2023). Team Canada Trade Mission to India . https://www.tradecommissioner.gc.ca/campaign-campagne/india- inde.aspx?lang=eng 9. Times of India. (2020). Urban Agriculture. https://timesofindia.indiatimes.com/blogs/dornadula-c/urban-agriculture/

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