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22 views12 pages

Untitled Document-13

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Uploaded by

Baldeep Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

INTRODUCTION

According to APEDA (2023), India is among the top three exporters of rice globally, with
agricultural and processed food product exports reaching over USD 26 billion in FY 2022–23.
This reflects both the export potential and the credibility of traditional Indian goods in
international markets.

India, a leading player in global agricultural and traditional goods exports, is widely recognized
for its rich variety of region-specific products such as Ponni rice, gingelly oil, tamarind,
spirulina, and earthen cookware. These products, often exported under strict quality and
regulatory standards, have established a strong presence in international markets, particularly in
Europe, the Middle East, and parts of North America. Brands such as Rettai Kili, Annachi, and
others from Puducherry and Tamil Nadu represent India’s traditional expertise in agriculture and
food production, supported by a robust network of micro, small, and medium enterprises
(MSMEs).

While these products enjoy considerable demand in international markets, a paradox exists in the
Indian domestic landscape. The same items—recognized abroad for their authenticity, purity, and
health value—often lack sufficient visibility, branding, and positioning within India’s own
consumer base. Despite being available in local markets, they are rarely marketed with the same
“export-quality” narrative that builds trust and premium perception among foreign buyers.

In the current consumer environment shaped by rising health consciousness, interest in organic
and traditional food products, and a growing preference for quality-assured goods, there exists a
significant opportunity for repositioning these export-grade products for the Indian market. The
Government of India’s initiatives such as “Vocal for Local” and “One District, One Product
(ODOP)” further encourage this integration between traditional production strengths and
contemporary domestic demand.

This study seeks to explore the perception, awareness, and market potential of export-quality
Indian products among domestic consumers. The research will examine how Indian buyers
respond to these products when exposed to their export reputation, branding, and packaging. The
project also aims to assess whether the “export-quality” label and international recognition can
influence domestic purchase decisions, particularly in urban and semi-urban markets.

The foundation of this research lies in real-world documentation from export


transactions—including invoices, packing lists, and shipping bills—collected from ongoing trade
operations conducted by firms such as Vanni Impex in Puducherry. By linking actual trade data
with consumer insights gathered through structured surveys, this project will offer strategic
marketing recommendations for enhancing domestic acceptance and sales of products that have
already proven their merit internationally.

The findings of this study are intended to benefit exporters seeking to diversify into domestic
retail, marketing professionals looking to bridge the gap between international and local
branding, and policymakers aiming to strengthen the market presence of Indian traditional
products within the country.

1.2 INDUSTRY PROFILE

1.2.1 Overview of the Indian Agro and Traditional Products Export Industry

India is globally recognized as a leading exporter of agricultural commodities and traditional


goods that hold both economic and cultural significance. The country exports a wide range of
products including cereals, edible oils, spices, natural food supplements, and indigenous
cookware. The agricultural and processed food export sector is supported by bodies like the
Agricultural and Processed Food Products Export Development Authority (APEDA) and
contributes significantly to India’s foreign exchange earnings.

Products such as Ponni rice, Idly rice, gingelly oil, groundnut oil, tamarind, spirulina, neem oil,
and clay cookwareare exported widely due to their purity, heritage value, and health benefits.
These products are rooted in traditional farming and preparation methods, making them highly
appealing in foreign markets where there is growing demand for ethnic, organic, and natural
goods.
India’s export network for these goods is facilitated by a broad base of Micro, Small, and
Medium Enterprises (MSMEs) that specialize in niche categories and regional products. These
exporters leverage traditional supply chains, international certifications (such as phytosanitary,
fumigation, and packaging compliance), and port logistics (notably Chennai, Tuticorin, and
Kochi) to deliver to countries like France, Belgium, Germany, UAE, and the UK.

1.2.2 Key Export Destinations and Market Demand

According to trade data from APEDA and the Ministry of Commerce, the European Union
represents a growing destination for Indian traditional foods and ethnic grocery items. The rising
South Asian diaspora, coupled with the global shift toward organic, clean-label, and plant-based
products, has increased the market penetration of Indian goods across mainstream European
retail chains and ethnic stores.

In particular:

●​ Ponni rice and Idly rice are sought for their unique taste and texture.
●​ Gingelly oil (sesame oil) and groundnut oil are in demand as cold-pressed, natural
alternatives to refined cooking oils.
●​ Tamarind, used in Indian and Asian cuisines, has culinary and medicinal applications.
●​ Spirulina and neem oil are exported for use in health supplements and skincare products.
●​ Earthen cookware is marketed as eco-friendly, toxin-free, and aligned with sustainable
lifestyle trends.

1.2.3 Role of Tamil Nadu and Puducherry in the Export Landscape

States like Tamil Nadu and Union Territories like Puducherry play a vital role in the supply of
these export-quality goods. With established rice mills, oil extraction units, and traditional
cookware artisans, these regions form a specialized cluster that contributes to India’s overall
export value chain.

Firms like Vanni Impex, based in Puducherry, export under brand names such as Rettai Kili and
work with local cooperatives and farmers to ensure quality and traceability. Exporters from this
region often deal in small-volume, high-value shipments, catering to niche foreign buyers who
prioritize authenticity over mass production.

These exporters comply with international packaging standards, labeling requirements, and
certifications, as seen in the shipping and invoice documents reviewed for this study. However,
despite this global reputation, many of these products remain underrepresented in domestic
premium retail spaces.

1.2.4 Government Support and Policy Framework

The Government of India has introduced several initiatives to promote the global
competitiveness and domestic viability of traditional goods:

●​ “One District, One Product (ODOP)” encourages focused product development based
on regional strengths.
●​ “Vocal for Local” campaigns aim to increase domestic appreciation of Indian-made
goods.
●​ MSME Export Promotion Councils offer financial and logistic support for branding,
e-commerce integration, and packaging innovation.
●​ Platforms such as Geographical Indication (GI) tagging also enhance product
credibility and regional identity in both foreign and domestic markets.

Despite these efforts, exporters often focus exclusively on international demand, neglecting the
growing potential in India’s rapidly evolving consumer market.

1.3 COMPANY PROFILE

1.3.1 Company Overview: Vanni Impex

Vanni Impex is a privately held export-oriented enterprise based in Puducherry, India,


specializing in the international distribution of traditional Indian food products and household
goods. Established with the vision of promoting indigenous agricultural and value-added
products in global markets, the company has emerged as a consistent exporter to European
destinations, particularly France and Belgium.
Operating under well-recognized brand names such as “Rettai Kili” (Double Parrot), Vanni
Impex deals in products deeply rooted in South Indian culinary culture and heritage. These
include varieties of Ponni rice, Idly rice, gingelly oil, groundnut oil, tamarind, and other
staple items. The company also exports natural health products like spirulina and neem oil,
along with traditional clay cookware such as dosa kal, idly pot, and biriyani hundi.

1.3.2 Export Product Portfolio

The core products handled by Vanni Impex reflect a unique blend of traditional knowledge and
modern packaging standards. Based on the export invoices and packing lists reviewed, the
product mix includes:

●​ Ponni Boiled Rice (5 kg, 10 kg packs – Rettai Kili brand)


●​ Idly Rice
●​ Gingelly Oil (cold-pressed, PET and HDPE containers)
●​ Groundnut Oil
●​ Tamarind (seedless)
●​ Clay Cookware (tawa, dosa kal, idly pot, biriyani hundi)
●​ Spirulina Powder
●​ Neem Oil

The company ensures product consistency, proper labeling (in English and French), and
compliance with food safety and packaging norms required in European markets. Products are
often customized to cater to specific client requirements, with detailed invoice and packing data
reflecting SKU-level export precision.

1.3.3 Supply Chain and Export Destinations

The firm operates with a regional procurement model, sourcing raw materials from nearby
districts in Tamil Nadu and processing them for export from Tuticorin (VOC) Port. The export
shipments are typically bound for Antwerp, Belgium, and French ports, catering to niche
markets that include both ethnic Indian consumers and local buyers interested in organic and
traditional products.
Based on shipping documents dated January 2025, shipments are organized with:

●​ Export Invoice and Packing List specifying item weight, HS code, packaging type, and
unit cost
●​ Phytosanitary Certificate
●​ Fumigation Certificate
●​ Shipping Bill
●​ Seaway Bill of Lading

These documents ensure compliance with international trade norms and highlight the
professionalism of Vanni Impex in global supply chain management.

1.3.4 Branding: The Rettai Kili Label

The brand Rettai Kili (translated as “Twin Parrot” in Tamil) has strong cultural resonance in
southern India. The label combines traditional imagery with clean, export-standard
packaging, aiming to evoke both heritage and quality. In overseas markets, this positioning is
supported by a reputation for authenticity and consistency.

However, despite its international reputation, Rettai Kili remains relatively unknown in the
Indian domestic market, especially among younger and urban consumers. This lack of
domestic brand penetration underscores the opportunity for repositioning the brand within India
as an “export-quality, premium traditional product.”

1.3.5 Vision and Strategic Outlook

Vanni Impex continues to focus on maintaining and expanding its export base, but it also stands
at a strategic crossroads where domestic market expansion can be explored without significant
changes to its core offerings. By leveraging the brand’s international success and refining its
marketing strategy for local buyers, Vanni Impex can potentially establish dual-market
dominance—catering to both overseas and Indian consumers seeking high-quality traditional
goods.
Here is the Review of Literature section for your project, written in a structured, academic tone
consistent with your earlier submissions. This section draws on relevant marketing, consumer
behavior, and export-branding concepts to establish the theoretical foundation for your research.

2 REVIEW OF LITERATURE

2.1 Consumer Perception and Quality Signaling

Consumer perception plays a critical role in the purchasing process, especially for food and
traditional products where intangible attributes such as trust, origin, and authenticity heavily
influence decision-making. Zeithaml (1988) defined perceived quality as the consumer’s
judgment about a product’s overall excellence or superiority. For export-oriented products, the
label “export quality” often acts as a quality signal, influencing the buyer’s confidence and
willingness to pay a premium.

In the Indian context, empirical studies (e.g., Sharma & Singh, 2016) have shown that rural and
urban consumers exhibit different perceptions of quality. However, across both segments,
external cues like brand name, packaging, and certifications often serve as proxies for assessing
product credibility.

2.2 Country-of-Origin and Branding Effects

The Country-of-Origin (COO) Effect refers to the psychological impact a product’s country of
manufacture has on consumer attitudes and purchase behavior. According to Roth and Romeo
(1992), products from developing countries often face image barriers unless supported by strong
brand communication. Conversely, when Indian products are labeled as “export quality” or
known to be popular in international markets, they may benefit from reverse COO
effects—where foreign acceptance enhances domestic trust.

Chattopadhyay and Nedungadi (2004) further suggest that in emerging markets, emphasizing
traditional roots while combining modern branding cues leads to favorable consumer responses,
especially for food, wellness, and ethnic categories.
2.3 Consumer Behavior and Purchase Intention

Ajzen’s Theory of Planned Behavior (TPB) (1991) provides a foundational framework to


explain consumer purchase intention. The theory posits that behavior is influenced by attitudes,
subjective norms, and perceived behavioral control. Applied to export-grade products,
consumers may be more inclined to buy if they perceive the product as high-quality (attitude),
are influenced by peer or cultural validation (norms), and find it conveniently accessible
(control).

Research by Gupta and Malhotra (2015) highlights that Indian consumers—especially in


semi-urban and urban markets—are increasingly value-sensitive rather than price-sensitive.
Thus, products with a premium or export tag can gain traction if positioned appropriately.

2.4 Branding in Agro and Heritage Product Marketing

Marketing traditional and agro-based products presents unique challenges, particularly for
MSMEs. Unlike FMCG brands with large promotional budgets, small-scale exporters often rely
on quality and legacy. Studies by Kumar et al. (2019) suggest that storytelling, geo-cultural
identity, and emotional branding are effective strategies for traditional product promotion.

A 2020 study by the Indian Institute of Foreign Trade (IIFT) on “Marketing Indigenous Products
in the Domestic Market” emphasized that Indian brands with a successful export record can
increase domestic visibility by leveraging institutional trust, export credentials, and heritage
marketing.

2.5 MSMEs and the Export-Domestic Branding Gap

Despite their role in foreign trade, MSMEs in India often struggle to maintain domestic brand
presence. Factors include limited distribution channels, inconsistent branding, and minimal
consumer education. Singh and Das (2021) noted that while India has strong production capacity,
its small exporters rarely view domestic retail as a viable branding opportunity.

This gap is particularly visible in export-grade products like rice, oil, tamarind, and herbal
supplements—goods that are perceived as basic or “mass-market” in India but are sold at
premium prices overseas. Literature supports the notion that bridging this gap requires
targeted domestic marketing, brand repositioning, and consumer engagement strategies aligned
with global perceptions.

2.6 Summary of Literature Insights

The literature reviewed underscores several key points:

●​ Export-quality perception can act as a marketing asset in domestic markets.


●​ Country-of-origin and export reputation can enhance trust if properly communicated.
●​ Traditional product marketing benefits from blending heritage with modern branding.
●​ MSMEs must evolve from commodity suppliers to value-brand developers to succeed
locally.

This review provides the theoretical foundation for the current study, which aims to empirically
assess how Indian consumers perceive export-grade products and what branding strategies can
increase their domestic adoption.

3 RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design

The present study adopts a descriptive and exploratory research design. The descriptive
component aims to quantitatively assess consumer perception, awareness, and purchase intent
regarding export-quality Indian products within the domestic market. The exploratory aspect
focuses on identifying the branding gaps, psychological cues, and marketing factors that
influence the repositioning of these export-oriented goods for local consumption.

The research seeks to analyze both structured consumer feedback and real trade documentation
to develop data-backed marketing recommendations. This dual-method design helps in
triangulating field-level consumer insights with documented export practices, creating a
comprehensive foundation for strategic decision-making.

3.2 Objectives of the Methodological Approach


The methodology is designed to:

●​ Measure the current awareness and perception of Indian export products in the domestic
market.
●​ Analyze the influence of export labels, brand identity, and packaging on consumer buying
behavior.
●​ Identify key factors (price sensitivity, health concerns, tradition, digital awareness) that
affect product acceptance.
●​ Develop marketing strategies based on consumer segmentation and perception.

3.3 Data Sources

Primary Data

The primary data was collected through a structured questionnaire administered to a sample of
Indian consumers. The questionnaire included both closed-ended and open-ended questions
covering product usage, awareness of export labels, trust in export-quality standards, and
purchase preferences.

Respondents were selected from diverse demographic backgrounds across age, gender, income
levels, and occupation to ensure varied representation and minimize sampling bias.

Secondary Data

The secondary data for the study was drawn from actual export documents sourced from Vanni
Impex, Puducherry. These included:

●​ Export Invoices
●​ Packing Lists
●​ Phytosanitary Certificates
●​ Fumigation Certificates
●​ Shipping Bills
●​ Seaway Bill of Lading
These documents provided authentic insights into product types, export destinations, volume,
labeling practices, and price positioning, which were used to cross-reference consumer feedback
and guide branding recommendations.

3.4 Sampling Technique

The sampling method used was convenience sampling, considering geographic and time
constraints. The target sample included:

●​ General consumers across income segments


●​ Working professionals and homemakers
●​ Students and youth (as trend influencers)
●​ Health-conscious individuals and early adopters of organic/traditional goods

A minimum of 100 valid responses were collected to ensure sufficient data for meaningful
statistical analysis.

3.5 Research Instrument

A structured Google Form questionnaire was designed and shared online. It included:

●​ Demographic information
●​ Multiple choice questions (product familiarity, usage frequency)
●​ Likert scale items (perception of quality, trust, influence of export labels)
●​ Ranking questions (factors influencing purchase)
●​ Open-ended suggestions (branding, marketing ideas)

The form was designed in English for broad accessibility and pre-tested for clarity and
consistency.

3.6 Tools and Techniques for Data Analysis

The following statistical and qualitative tools were used:

●​ Descriptive Statistics: Frequency distribution, mean, and percentages for general trends.
●​ Cross Tabulation: To study relationships between demographics and perception
variables.
●​ Correlation Analysis: To identify linkages between export-quality perception and
purchase intent.
●​ Thematic Coding: For analyzing open-ended responses regarding branding preferences
and suggestions.

The data was processed and analyzed using Microsoft Excel and Google Sheets. Charts and
graphs were used to visualize results, and interpretations were drawn to support marketing
conclusions.

3.7 Limitations of the Methodology

●​ The sampling method was non-probabilistic and limited to selected regions.


●​ The online mode of survey may exclude digitally underserved demographics.
●​ Export document analysis was restricted to products from a single exporter (Vanni
Impex), which may not represent broader national patterns.

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