Library
Value Buyers - Priority Target Customer Category

For any successful business it needs to have visibility on at least 5 - 10 years ahead of what could happen in future. 

I am seeing bottom of the pyramid consuming class also known as low income category including factory workers would continue to cook most of their meals at home as compared to other two that is middle and upper class House Holds.

These low income households are now also earning enough to satisfy their needs for food varieties. 

Their buying behavior is also far more simpler as compared to other classes.

They are much easier to communicate as they work in large numbers in designated work places and also live in close clusters. 

Most of their kitchen ration purchases are on cash basis or at best linked to two payments cycles per month. 

If this is the case then how do we determine- assess - anticipate them as a high priority consumption class for Spices and that too in terms of three generations of spices and products.  

For any futuristic business our thinking must moving beyond the conventional spice industry. 

Also note that we are no longer segmenting customers by income as it may appear, but we are actually segmenting them by food behavior and that is a much more useful lens.

One more insight

I would actually classify households according to Cooking Intensity, not income.


Household TypeStrategic Opportunity
Heavy Home Cooking (20–25 meals/week)Highest
Moderate Home Cooking (10–20 meals/week)Medium
Mostly Eating OutLow


Cooking frequency predicts spice and cooking-base consumption far better than income.

For brevity I would avoid calling them "Low Income Group." 

From a business strategy perspective, terms like Everyday Working Households, Working Families, or Mass Value Consumers are more respectful and more accurate. 

Many of these households today earn ₹25,000–60,000 per month and have clear aspirations. I would characterize them as follows.


DimensionAssessment
Meal Preparation80–95% meals cooked at home
Time AvailabilityLimited, especially in dual-income families
Food ExpectationsVariety every day, not luxury every day
Purchase BehaviorFrequent, cash or UPI, value-conscious
Taste PreferenceStrong regional identity
Brand LoyaltyModerate if quality is consistent
Risk TakingLow
CommunicationCan be reached through factories, residential colonies, hostels, industrial clusters and local retailers


Now comes the strategic question.

Which generation of products fits them?

Generation 1 -Primary Spices; 

I would say No.

Reasons:

  • Very low monthly spend on primary prices. 
  • Difficult to differentiate from other options
  • Commodity behavior while buying kitchen gocery.
  • Limited opportunity to improve their cooking experience. 

Generation 2 -Blended Masalas:

I would say Partially.

They may buy Garam Masala, Chhole Masala or Pav Bhaji Masala occasionally, but these are dish-specific purchases. They don't solve the everyday cooking challenge.

Generation 3 - Cooking Conveniences:

Here I think lies the biggest opportunity.

Why?

Because this segment is not looking for "premium spices."

It is looking for:

  • Faster cooking. 
  • Better taste. 
  • Less cooking skill required. 
  • Fewer ingredients to buy. 
  • Predictable results. 
  • Affordable restaurant - like experience at home. 

That is exactly what a cooking convenience provides.

Boundary Conditions – Priority Target Customer Segment

1. Home cooking will remain dominant.

Despite rapid growth of restaurants, delivery platforms and convenience foods, this segment will continue preparing the majority of its meals at home because of affordability, habit and family structure.

2. Value is more important than price.

This customer is price-conscious but not necessarily price-driven. If a product demonstrably saves time, improves taste and reduces effort, they are willing to spend slightly more.

3. Every purchase must justify itself.

Unlike affluent consumers, impulse buying is limited. Each new product competes for space in a tightly managed household budget.

4. Time poverty is increasing.

Although incomes are improving, available cooking time is reducing. Dual-income families, factory shifts and longer commuting hours make convenience increasingly valuable.

5. Labor shortage exists inside the household.

Cooking skills are gradually declining. Young couples, bachelors and migrant workers increasingly require products that simplify cooking.

6. Kitchen complexity is becoming the real problem.

The issue is not merely buying spices. It is managing onions, tomatoes, ginger, garlic, oil, spice balance, preparation time and cooking sequence every day.

7. Food variety expectations are rising.

Consumers no longer want the same dal and sabzi every day. They seek restaurant-style variety while remaining within household budgets.

8. Trust outweighs novelty.

This segment adopts new products cautiously. Once convinced, repeat purchases can remain stable for years. 

9. Regional identity remains extremely strong.

Even within the same income category, taste expectations differ widely. Products may require regional adaptation rather than one national formulation.

10. Communication is becoming easier - but more competitive.

Industrial clusters, worker colonies, WhatsApp groups and local communities provide concentrated communication opportunities. However, thousands of brands compete simultaneously for attention.

11. Cash-flow cycles influence purchasing.

Purchases often correspond to salary or wage cycles. Pack sizes and promotional activities should reflect these cash-flow realities.

12. Distribution must go where consumers already go.

Expecting consumers to search for specialized products is unrealistic.

Products should reach:

  • Kirana stores 
  • Factory neighbour-hoods 
  • Labor colonies 
  • Local wholesalers 
  • Mobile vendors 
  • Community retail points 

13. The consumer buys meal solutions, not ingredients.

This may become the single most important boundary condition. The customer does not wake up wanting coriander powder.

They wake up wondering:

  • What will I cook today? 
  • How quickly can I cook it? 
  • Will everyone enjoy it? 
  • Can I stay within today's food budget? 

14. Repeat purchase depends on habit formation.

Trial can be created through sampling. Long-term success depends on becoming part of the weekly cooking routine.

15. The household is the decision-making unit.

The buyer, cook, eater and influencer may all be different people. Communication should therefore address the entire household rather than a single purchaser.

16. Aspirations are rising faster than incomes.

Consumers increasingly seek restaurant-quality taste without restaurant expenditure. This creates an opportunity for high-quality cooking systems.

17. This segment should not be viewed as a "low-income market."

It should be viewed as India's Largest Everyday Cooking Economy. That subtle change has enormous strategic implications. It shifts thinking away from affordability alone towards frequency, scale, loyalty and lifetime value.

One boundary condition I would also add because it aligns with our broader vision. This segment is not merely a consumer. It can become the meeting point between:

  • Farmers 
  • Food processors 
  • Local food businesses 
  • Retailers 
  • Community organisations 

In other words, it is the centre of the entire food ecosystem, not simply the last buyer in the supply chain.

I also think there is one more master boundary condition that should sit at the end of this note, just as we concluded the first three papers.

The Priority Target Customer Segment should not be defined by income, occupation or social class. It should be defined by the frequency of home cooking, the need for value, and the desire to prepare better meals with less time, less effort and greater consistency. 

This segment represents India's largest and most stable everyday cooking economy and is likely to remain the foundation of the New Age Spice Business for many years to come. 

Team Hello Kisan