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GD Foods to expand its presence in the Eastern markets

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KOLKATA: The fast-moving consumer goods (FMGC) company, GD Foods Manufacturing (India) that has two brands – Tops and Royal Taste – under it, plans to expand in the eastern region.

In the present fiscal (2013-14), the company has earmarked four per cent of the turnover on the marketing spend that would include on-air and on-ground activities. However, in the next fiscal the spends would increase marginally, going up to five per cent.

The company wants to expand its presence further in the eastern region by increasing the spends as well as by entering with the Royal Taste products beginning with Kolkata market in the next five-six months.

The company has no plans to set up its manufacturing base in the eastern region but in order to capture the markets of Bihar, Odisha, Jaharkhand, it is looking at the best distribution possibilities.

In the current fiscal, the company spent around Rs 8 crore on marketing and advertising initiative.

Also, GD Foods which witnessed a turnover of Rs 153 crore in the last fiscal (2012-13), is confident to cross sales of Rs 200 crore in the current fiscal 2013-14. “Our turnover is likely to be higher than Rs 200 crore in FY14,” said GD Foods VP, Marketing Monika Solanki.

Before foraying in the Kolkata market, the company is looking at hitting 360 degree marketing campaigns including outdoor media, regional television and newspapers papers. “Our own team is working on below-the-line activities that also include on-shop activities,” she added.

The flagship company of the group – Tops – with key consumer products categories like jam, tomato ketchup, pickles, instant mixes, custard powder, culinary sauces, vermicelli, jelly among others has crossed 167 stock keeping units. “Tops pickles and culinary sauces are the main categories of products that largely drive GD Foods,” said Solanki.

A media and brand expert from the eastern region says that because of Tops’ popularity, the company will have to be really innovative to make a mark with Royal Taste. “If the company is looking to enter the eastern region with ‘Royal Taste’, it has to do innovative campaigns to win over the existing national and regional players in Kolkata and eastern region,” said the expert.

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