What is HoReCa sales and marketing?

Well, the extended period of lockdown and indoor stay all the time has made me realize the things I love the most in my life. I missed having my tomato tossed cheesy pizza and masala French fries over a cup of cold coffee on the counter I used to go to every other day. And let’s not get started with tandooris, dosas, pakodas, street foods, and whatnot. Pretty sure, many of you would already have familiar experiences of missing out on your favorite dishes, and yes, we are talking about the great Indian Food Industry here. 

Ho-Re-Ca is an abbreviation for Hotels, Restaurants & Cafes. It is used interchangeably with the food industry. We all know our restaurants by the food they serve or the ambiance they provide. But what makes all of these seamless? Efficient management and numerous backstage operations.

One such significant operation is the sourcing of raw materials and its supply chain management. The Hotels, Restaurants & Cafes are among the biggest revenue generators for many FMCG companies, including big and small. 

There are dedicated teams in FMCG companies working with these clients to fulfill their needs. 

What makes this Horeca Marketing industry so attractive? Let’s explore!

Why market to HoReCa businesses?

With India becoming the world’s fifth-largest destination in the retail sector, several global FMCG players show confidence in the Indian markets due to robust household demands. Digital technology will play an essential role in the development of such industries. 

By driving the growth, the fast-moving consumer goods and online retail companies are looking for opportunities to go beyond traditional trade channels to increase revenue while gaining clear entry into the Indian HoReCa (hotel, restaurant, and catering) market segment. In the past few years, the foodservice (also known as the HoReCa business) has become one of India’s fastest-growing industries.

For FMCG companies, the Business-to-business (B2B) market place, mostly catering to HoReCa, sees a significant uptick compared to the regular Kirana store market place. It explains the potential the industry holds.

The time for organized retailers to enter this market is ripe. However, the sector’s biggest challenges include transparency of transactions, stable supply, and value solutions for products and services. By taking advantage of the industry’s current opportunities, the following factors will play a significant role in organizing the HoReCa industry, which will enable participants to develop their businesses substantially.

Lifestyle changes are one of the key drivers

HoReCa is a broad market with huge potential. The players in this industry do operate at a very granular level and also at a grand level. Depending on the lifestyle changes, their offerings vary and hence the nature of their sourcing. The emergence of QSR (Quick Service Restaurants) and cloud kitchens most recently explains how the markets adapt themselves with changing priorities.

The current COVID situation will make some permanent fixes in the way the industry operates. Hence, it can benefit the players that treat hotels, restaurants, cafes as their clients providing the necessary raw materials. We all will be the flag bearers of such changes.

Supply chain management is the backbone in the HoReCa sector

Supply chain management has a make-or-break effect on almost all aspects of the HoReCa sector. As India begins to open its economy further, prudent supply chain management will be a key for small and medium players, and it creates an opportunity for FMCG players to step in. Committing funds for the development of intermediaries is key to the HoReCa sector growth and in turn for Raw material providers.

For an FMCG player doing business with a HORECA client, it will be prudent to have long term partnerships. Hence it is crucial to develop trust among the clients. Lack of transparency and traceability can lead to headwinds in the supply chain and expose brands to unnecessary risks.

Distribution models for HoReCa business

The logistics management for the HoReCa sector ensures timely and quality service delivery to entrusted customers. It is good to have some ideas on the various distribution models operating in the industry.

Pre-sales model

The main features of the pre-sale model come from the order being placed before delivery. The order is set by the sales agent who performs a predefined sequence of visits to customers (this sequence will become the distribution channel) or is determined by the delivery truck driver, whose job is both sales and logistics.

Auto-sales model

The principal difference between the auto and pre-sales model is that order before delivery is not essential. The driver generally follows a route to customers that are assigned to him with no prior knowledge of the quantities that will be delivered to each customer. 

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How to Start Pickles & Sauces Business in India –Complete Guide

India is a country which is known for its diversity and with a culturally rich tradition. Our country offers a diverse range of food products that serves the taste of pickles jams ketchups marketing entire India in a processed and presentable way. We have massive varieties in pickles, culinary sauces, seasonings and dressings which are winning products, loved by people all around the world.

The trend towards emerging nuclear households, higher women participation in the workforce, and also an increasing number of bachelors and one-parent families, are contributing to an erosion of traditional patterns of eating.

It is a long era tradition of preserving vegetables and fruits in the form of sauces, pickles, relishes, condiments and dressings, chutneys began as kitchen art.

India condiments market stood at $ 638.96 million in the year 2018 and project to grow at a CAGR of over 13%, to reach $ 1340.5 million by 2024. 

Revenue in the sauces and condiments division lead to US$14,794m in the year 2020. The market then expects to expand annually by 8.3%.

According to “India Table Sauces Market Outlook 2021”, India’s table sauces market is predicted to increase at a CAGR of 18% over six years. Nestle’s Maggi, Kissan, Heinz, Ching’s, Fun Foods, Remia, Del Monte, Sil, Tops and Tabasco are driving the organized table sauces market.

The Indian Condiments market is majorly controlled by below significant players, namely – Nestle India Limited, Tops, Del Monte, HUL, Cremica Food Industries Limited, Dr Oetker India Pvt. Ltd. etc.

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