Mumbai, March 4: It is action time at the Maharashtra Agro-Industries Development Corporation (MAIDC). The Rs 380-crore Government of Maharashtra undertaking is repositioning the distribution of its processed foods brand Noga through the the retail channel, once again. Retail support for this popular brand of the 70s and 80s, was withdrawn five years ago. However, realising that the brand still enjoys recall, it has been brought back to consumers through the retail route.``We had been focussing on institutional buyers like hotels and the Indian Army for Noga in the past few years. However, recently conducted market research indicated that despite the scant availability of the product, the brand still exists at the back of the consumers' minds,'' says Ujjwal Uke, managing director, MAIDC.
The Rs 4-crore brand, Noga, which includes a range of squashes, juices, jams, canned fruits, baked beans and canned sweet corn has been repackaged late last year. This incorporates contemporary packaging options likeTetrapak in case of the fruit juices. Now, Noga jams have been launched in `pop-up sealed jars' to deliver a tamper-proof product. These seals are statutorily required for all infant food brands internationally.
An advertising campaign has been released in print and regional television channels in Maharashtra recently to revive the brand in public memory. In its second phase the campaign will be unveiled in South India and select cities in the North.
The corporation is targeting Rs 10-crore worth of sales from the brand by the end of this financial year. Returns expected from Noga by the turn of the century are pegged at an ambitious Rs 20 crore.
However, currently, Noga has a limited reach and is distributed through 55 dealers nationally. Of this, 21 new distributors have been roped in recently. There are plans of adding 50 new distributors over the next one year. Currently being rolled out in Madhaya Pradesh, Noga will be introduced in Gujarat next week.
However the retail level availability of thebrand will take a long time in matching up to a HLL (3000 dealers) or Parle Agro Indutries (2500 stockists).Instead, to ensure volumes, the corporation will enter semi-urban centers across Maharashtra instead. Here the MAIDC plans to piggyback on the existing 1,000 plus distributors for its fertilisers and pesticide brands. ``We intend to reach out to all tehsil level towns across Maharashtra. Besides saving start-up distribution costs, we will be able to tap a large market which is exposed the concept of processed foods, thanks to the penetration of cable television,'' says Uke.
However developing distribution muscle tone is not enough, aver observers. As against the industry norm of 17 per cent, MAIDC's retail margin for Noga is a small 12 per cent--a factor that had contributed to Noga's absence on retail shelves in the past few years. The inability to hike retailer margins might go against Noga in the future as well.
However, Uke insists: ``We are a marketing company.'' The corporation is nowcontemplating Noga fruit juices in new technology PET bottles that can withstand high heat, have a longer shelf life and lower packaging costs vis-a-vis glass bottles or Tetrapaks. It could yet be a sweet comeback.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.