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Marketing and Distribution of Mushroom

Sachin and Virag are two enterprising youth. They have passed out from IIM,

Bangalore. They thought instead of doing a job, they will launch fresh vegetables in

Indian markets. Having learnt of the future conventional foods, they decided to

venture into cultivation of mushrooms.

Mushrooms are known to be the best alternative food for vegetarians. For Sachin and

Virag fund raising was a serious handicap for mass production. However, the first

trial batch of mushrooms that they produced was bought by Star Hotel in Bangalore.

Further, the hotel placed orders for supply of 20 kgs every day.

Now mushroom industry is run by small entrepreneurs, like Sachin and Virag.

Another big player M/s Ashtavinayak Mushrooms, equipped with cold storage

facility was more interested in the export market.

Sachin and Virag have set their sights high. They aim to sell mushrooms in a very

big way all over India. Mushrooms have a great market potential and is a perishable

food.

Questions

  1. How will you advise Sachin and Virag, as how to increase the consumerawareness about this new food?
  2. What would be your suggestions for distribution channel for mushrooms?

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