Research Article BRANDING of PAPRIKA OLEORESIN in CHILLI

Available Online at http://www.recentscientific.com International Journal of CODEN: IJRSFP (USA) Recent Scientific

International Journal of Recent Scientific Research Research Vol. 11, Issue, 02 (C), pp. 37381-37383, February, 2020 ISSN: 0976-3031 DOI: 10.24327/IJRSR Research Article

BRANDING OF PAPRIKA OLEORESIN IN CHILLI – CHALLENGES AND OPPORTUNITIES

1V. Rajendra Prasad, 2Rajendra M.Inamdar, 3Prashanth Kumar R, 4N K Singh and 5M.H. Leela

1Associate Professor, ANGRAU-Agricultural College, Naira-532185, 2Professor & Director, Dept. of MBA, Angadi Institute of Technology and Management, Belagavi, Karnataka 3Assistant Professor, Dept of Food Business Management and Entrepreneurship, NIFTEM, Delhi NCR, 4Research Scholar, Department of Business Studies, Central University of Karnataka, Kalburgi and 5Assistant Professor, Dept of MBA, Dr.AIT, Bangalore

DOI: http://dx.doi.org/10.24327/ijrsr.2020.1102.5096

ARTICLE INFO ABSTRACT

Article History: Chilies adds pungency, taste and flavor, and could enhance the acceptability and desirability by the consumers. Commercial red chilly oleoresins are mainly used as a spice supplied in pungency Received 6th November, 2019 ratings between 80,000 and 500,000 Scoville units (approximately 0.6-3.9% capsaicin) and a range Received in revised form 15th of colour. Four companies in India around 80 percent of India’s Rs. 2000 crore spice paprika December, 2019 oleoresin. Taking into consideration the global competition and the expanding domestic food Accepted 12th January, 2020 business in terms of readymade foods, ready to cook foods etc. revisiting the business strategy of Published online 28th February, 2020 expanding oleoresin exports felt essential. This paper identified GI granted Byadgi chilli which is

essentially sweet and not so spicy and its oleoresin uses in food, cosmetics, confectionery and Key Words: beverages. The projected global market potential will be ₹ 118 billion by 2022 by 2022, a brand Branding, Oleoresin, chillies canvas was contemplated with brand elements like logo (BYOL), Slogan (Make tastier and Colorful your dishes), Packaging 100 & 500 grams tinned packaging with display of logo, slogan, USFDA and FSSAI certification, ingredients, usage, manufacturing and expiry date, ASTA number and batch mark, AGMARK etc. with a long term perspective to tap European and Middle East market.

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INTRODUCTION many essential nutrients. It avoids coronary diseases through dilation of blood vessels. Capsicum, pepper cayenne, red Cuisines across the globe necessarily constitute spices. These pepper and pepper hot are the alternative names of chilli. are used in various types comprising fresh, ripe, dried, broken, powdered etc., which adds aroma, taste and flavour, Evolution of Oleoresin

Glossary of Chilli Oleoresin is an extraction from chillies. Normally called as Paprika Oleoresin. Scientifically Paprika Oleoresin is Time line 7500 B.C extracted for Indian red chillies (Capsicum frutescens). Distribution Ubiquitous (Across varied geographies) Stages of Use Green, red ripe, ripe dry Paprika Oleoresin is USFDA approved (The Food and Drug Utility Vegetable Administration, a federal agency of United States). Four Major climate Tropical companies around 80 percent of India’s Rs. 2000 crore Asia pacific, Peru and Ghana (85% of Major countries business of Paprika Oleoresin. Oleoresin capsicum extracted production) Largest producer & Consumer India from the longer, moderately pungent Capsicum. Commercial Salads, baked dishes, stuffed dishes, productss are mainly used as a spice whoes pungency ranges Cuisine varieties stew, salsa, pizza, cheese and pickles between 80,000 and 500,000 Scoville units (approximately 0.6-3.9% capsaicin). colour and pungency to food. Bark, buds, flowers, fruits, leaves, rhizomes, roots, seeds, stigmas and styles or the entire Market Environment plant tops can be the economic parts of spice plants. Peru Chillies are subjected to solvent/ super critical extraction to witnessed chillies from time immemorial. These are cultivated obtain oleoresins of various pungency and colour unit grades. everywhere in India. The home of chilli is central America. These are further used in manufacturing of flavors’ and Chilli is essential constituent of Indian dishes and is source of seasonings.

*Corresponding author: V. Rajendra Prasad Associate Professor, ANGRAU-Agricultural College, Naira-532185, V. Rajendra Prasad et al., Branding of Paprika Oleoresin in Chilli – Challenges and Opportunities

 Public relations The global oleoresin market ₹ 118 billion by 2022 Indian export potential ₹ 2691 million  Media Promotion or Advertising China (₹ 2453 million), South  Sales Promotion or tapping varied regions Largest buyer Korea and United Kingdom (₹  Awareness Programme on quality of product and safety 163million and ₹ 20 million) through trade fair Promotional trips abroad participation Business Scenario in international fairs etc.,

Major chilli producing countries and their details are given in Gaps and Researching Possibilities

Table 1. Major Importers for Green Chilli are USA, Germany,  Surprisingly much applications in diluted forms of UK, Russia, France, Canada, Netherlands, Italy, oleoresin are not tried in Indian kitchen. Table 1 Global production areas  Research for use of oleoresins in dishes like sambar, rasam, lassi and dal. The level of research in these Continent Nations Asian gaints, Indonesia, Korea, Pakistan, areas has been sub-optimal. Asia Turkey and Sri Lanka  Increase the popularity implementation of Africa Nigeria, Ghana, Tunisia and Egypt in Africa technologies like SCFE (Supercritical Fluid The Americas Mexico and surroundings and USA Yugoslavia, Spain, Romania, Bulgaria, Italy Extraction). Europe and Hungary.  Need to develop expertise in logistics and supply chain to run the B2C model. Austria & Poland and Dry Chilli USA, Thailand, Malaysia, Sri  An aggressive marketing campaign is vital to Lanka, Spain, Bangladesh, Mexico, Germany, Indonesia & promote wide awareness. Japan. The SWOC matrix for oleoresin business is presented in Table 2. Considering the above issues a brand matrix is designed for example in Table 3. Table 2 SWOC Matrix of oleoresin business Situation specific changes in strategies could be contemplated Challenges Strategic Issues

 Aflatoxin depending on volume of business and target market.  High cost of production  Harmful colour additive  High yearly fluctuations and  Infections in field & prices Brand elements and Bases of Branding storage  Cost of storage  Highly sensitive to light,  Buying and selling decisions Brand elements help to express or represent and identify or heat and air.  Residues differentiate the brand. They help to communicate the brand  Proper drying character to market place. A brand model canvas was worked Major driving factors Branding elements and the bases for out for the benefit of the prospective entrepreneurs. Reference branding  Oleoresins market is https://en.wikipedia.org/wiki/Oleoresin increasing popularity and  Natural extract without any food & beverage industries antioxidant V. Rajendra Prasad, M.Goverdhan and Shaik Mohammad on global level.  Consistency in flavour  Strong economic growth  Not affected by bacterial (2008) Infrastructural needs of Chilli farmers in Khammam coupled with rising contamination district of Andhra Pradesh. Seminar proceedings of Agri- disposable income and  Dence Color: Its red color business potential in Andhra Pradesh organized jointly by changing lifestyle has been  Pharmacological: Chilli oleoresin Indian society of agricultural Marketing, State Agricultural resulted into growing demand possesses anti-oxidant, analgesia, for spicy food in India. anticancer & anti-inflammation Marketing department, A.N.G.R. Agricultural university,  Potential semi-tropical herbs features. It radically reduce free Hyderabad. radicals in our body. https://brandidx.online/  Demand from processed food and fragrance industries  Easy blend ability to achieve the desired features  Mostly preferred natural colouring and flavoring agents to artificial ones  Rising consumer awareness towards health benefits of paprika over traditional raw spices (Consumers become increasingly health conscious)

Brand Building Tools

The oleoresin chilli or paparika by the business need to tap varied modes of communication to succeed in the business

 Business to Business  Business to Customer  Personal Selling  Direct Marketing  Trade Show and Exhibition 37382 | P a g e International Journal of Recent Scientific Research Vol. 11, Issue, 02 (C), pp. 37381-37383, February, 2020

Table 3 Brand Matrix for oleoresin (Paprika) in India

Touch points Brand tactics Core brand message Relationships Customer segemnts Packaging: 100 & 500 grams tinned packaging with display of logo, slogan, USFDA and Quality: FSSAI certification and Market route USFDA & expiry date, ASTA number B2B FSSAI and batch mark AGMARK, Present :USA

etc. Long Term strategy Value Proposition: ready to use Peculiarity of Byadgi chilli : it European and Middle Logo: preservatives and colouring is essentially sweet and not Asia Referencing & agent for cooking. spicy. Oleoresin extracted To export to Pharma QR Code video from it is used in food, and Cosmetics To export to Cosmetics, confectionery industries. pharma GI tagged: Byadgi chili has industry been recorded geographical

indication in February 2011. GI tag is 144. Dealers & Suppliers MOTIVATIONS Positioned as: A premier BRAND PERSONALITY colouring, flavouring and Brand Name: BYOL (BY for preservative agent that aids in BYAGI and OL for oleoresin) the case of cooking. Byadgi Slogan: Tastier and Colourful Chilly annual sales Rs 3 billion your dishes ($75 million), Health benefits & Ease of use Share of Global Trade of

Paprika

India (60%) followed by China

exports are @Rs 1000 crores. Afflatoxin free Expenditures WIN Metrics 11 per cent out Sales No.of Dealers and Supply 1000 days chain

Reference

1. https://en.wikipedia.org/wiki/Oleoresin 2. V. Rajendra Prasad, M.Goverdhan and Shaik Mohammad (2008) Infrastructural needs of Chilli farmers in Khammam district of Andhra Pradesh. Seminar proceedings of Agri-business potential in Andhra Pradesh organized jointly by Indian society of agricultural Marketing, State Agricultural Marketing department, A.N.G.R. Agricultural university, Hyderabad. 3. https://brandidx.online/

How to cite this article:

V. Rajendra Prasad et al.2020, Branding of Paprika Oleoresin in Chilli – Challenges and Opportunities. Int J Recent Sci Res. 11(02), pp. 37381-37383. DOI: http://dx.doi.org/10.24327/ijrsr.2020.1102.5096

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