Amid False Reports Of Being Acquired By HUL, A Quick Recap Of How MDH Masala Turned Into The Spice King Of India!

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Amid False Reports Of Being Acquired By HUL, A Quick Recap Of How MDH Masala Turned Into The Spice King Of India!

Quite recently, reports of MDH or Mahashian Di Hatti Pvt Ltd's acquisition by Hindustan Unilever Limited (HUL) sent MDH's stock dropping by over 4 per cent. However, in their official statement, MDH refuted all such claims, terming them as arbitrary rumours and said that the usual course of business shall continue.

Touted to be the second largest leader in the Indian spice market, the spice giant initially started with a small shack in Karol Bagh and decade by decade burgeoned into an indelible brand. All thanks to MDH’s founder Mahashay Chunnilal Gulati and his son and the de facto hero of the success story, Dharampal Gulati.

Picture Source: The Economic Times

But as a brand, Dharampal’s MDH has more than spices to offer. We are talking about the marketing strategy of MDH that made MDH spices make their way from a small shop to almost every Indian kitchen in the country and even abroad. Here are some MDH marketing ‘spice’ points for a good brand building lesson.

Quality speaks for itself

It takes years to create a brand that people can recall with little or no prompting. And the first and foremost thing that builds people’s trust in a brand is the quality of its products.

In an interview to The Economic Times, Dharam Pal had once said, “My motivation to work is being sincere in product quality sold at affordable prices.” This clearly indicates that quality is the cornerstone of MDH.

MDH never compromised on quality and kept its promise intact for decades. Also, along with quality, MDH ensured that the price was fixed keeping in mind the income of the Indian middle class- the target market of MDH.

A customer buys what meets the eyes!

Packaging influences product satisfaction and also shapes shopping behavior, apart from being a key driver of repeat purchase.

MDH paid keen attention to its product packaging so much so that it has about 150 different kinds of packaging for its range of 62 products! Each day at MDH, about 30 tonnes of spices in powders are packed in attractive consumer packs of different sizes ranging from 10g to 500g in a day. The packaging of the products are designed to address the varied needs of consumers all over the world.

Quick Insight: A study by MeadWestvaco, which is a global player in packaging, showed that for Indian consumers, packaging plays a critical role in product satisfaction. In the study, the percentage of people that preferred packaging and brand while choosing a product were 71% and 75% respectively. This means that packaging is almost as important as the brand of the product!

Endorsement by the CEO

We normally see brands being endorsed by celebrities such as bollywood actors, singers, models etc. But MDH clearly stood apart when it came to endorsement. Their ads featured the owner himself eventually making him one of the longest running brand ambassadors.

Every MDH advertisement projected Dharampal Gulati as the elderly figure of a large Indian family thus touching upon the Indian joint family culture which instantly clicked with people.

In fact his book describing his rise from a ‘tongawala’ to the king of Indian spice market furthered his connection with people, inspiring them to achieve their dreams.

MDH’s portrayal of the Mahashay Dharampal in its advertisements was masterful and it successfully worked for the brand for almost four decades. However pitching the CEO as the sole brand ambassador can be tricky for other brands. The founders or CEOs can make brief appearances for a particular campaign or product launch, but banking solely on the owner for brand endorsements might not always work in the favor of the company.

Product diversification is the key

When the father son duo of MDH or Mahashian Di Hatti started out, they were popularly referred to as ‘Deggi Mirch Wale‘ by people. However, as their business grew, the company added a range of other spices to their product list. From Pav Bhaji to Biryani, Curry to Butter Chicken, MDH has a blended masala mix for almost every Indian dish.

Product diversification is helpful in increasing brand recognition, enhances opportunities for customers to find value in the brand and thus increases brand loyalty. By adding a range of new variants in its product line from time to time, MDH not only catered to the Indian demands but also kept its customers glued to the brand.

Weaving the brand with social cause

For brands, CSR or corporate social responsibility helps to project a good brand image. It increases customer retention, employee engagement and opens doors for investment opportunities.

This is another factor that sets MDH as a brand apart from others. Abiding by its founder’s words, “Give to the world the best you can, and the best will come back to you automatically”, the brand indulged in charitable activities way before the Indian government made CSR mandatory for corporates.

Under the leadership of Mahashay Dharampal Gulati, MDH developed schools, hospitals equipped with CT scan, MRI, IVF etc. This led people to identify with MDH even more and the brand soon made a mark in the Indian people’s hearts and minds.

Mahashay Dharampal donating PPE kits for healthcare workers in Delhi. Picture Source: Twitter

Quick Insight: India became the first country to legally mandate CSR on April 1, 2014 making it mandatory for companies of a certain turnover and profitability to spend 2% of their average net profit made during the three immediately preceding financial years on CSR.

As MDH continues to stand tall in the Indian market, its marketing strategy will keep guiding the newer businesses, the story of the humble beginnings of its owner will continue to inspire people, and its jingle ‘asli masale sach sach’ will continue to remain in the memory of the Indian consumers.