Published by MBA Skool Team, Last Updated: March 13, 2021
PESTLE Analysis of Kissan analyses the brand on its business tactics. Kissan PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Kissan, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Kissan PESTLE Analysis can be explained as follows:
Kissan is of the largest packaged food companies which offers ketchup, jams & beverages, and several government policies affect the brand. The government of India made a giant step by reducing GST in food and beverages to 5%. It not only has helped various fast-food restaurants in increasing foot fall but also helped the ancillary industries like ketchup industry in India which are well coupled with fast food industry due to its association with the food products. However, government’s recent aim of doubling farmer’s income may come at a cost of increased raw material cost of various food products that Kissan is in. A dedicated web portal by Indian government for food processing industry is also an important in reaching out to the manufacturers.
Image: company website
Below are the economic factors in the PESTLE Analysis of Kissan:
Competition pricing, foreign exchange rates, taxation policies etc all impact a brand like Kissan, which also exports its goods across many countries.
Although there was no mention of food processing industry in the budget, the government of India includes the benefits of which food processing industry will also be a part of. Food processing industry is also getting benefits of the PLI scheme of the government. Indian government has already opened 100% FDI in food processing industry. India’s retail processed food market is expected to reach more than USD 1 trillion by 2025.
Following are the social factors impacting Kissan PESTLE Analysis:
Indian food and restaurant industry is seeing a change where branded fast food products are being preferred due to their quality. Kissan has a huge consumer base as well as can utilize tie-ups hotels, restaurants, food chains etc. Post COVID, the population is preferring quality food over just fresh food. This also includes ketchup that is free of chemicals. With increased fast food consumption, the ketch up industry can also play its role in changing the taste buds of Indian population. However, looking at a large vegetarian Indian population it is also important to focus on veg products and also gluten free products.
The technological factors in the PESTLE Analysis of Kissan are mentioned below:
Technologically, the ketchup, jam and mayonnaise industry is moving towards chemical free products. Industry is trying to produce products that are free from chemicals but still have higher shelf life. The cloud kitchen concept is also boosting the sales of add on products of mayonnaise and ketch ups as they add taste to the food.
Kissan needs to constantly innovate with its product line and must also focus on investing in research & development to further strengthen its position in the market.
Following are the legal factors in the Kissan PESTLE Analysis:
In India the major law that governs the food industry is the Food Safety and Standards Act, 2006. FSSAI certifications are mandatory to come into the market that includes the packaging and labelling of the products. This ensures that the consumer is aware of what is being consumed. Kissan company needs to abide by consumer protection laws, maintain quality standards of production & must look at laws which are prevalent in the country of its business.
In the Kissan PESTLE Analysis, the environmental elements affecting its business are as below:
Use of chemicals by various players in food processing industry like that of ketchups has been a cause of concern. This not only can be harmful for humans but also for the environment.
Companies are trying to change the way ketchups and other food products are packaged with governments and other social organizations’ raising voices against use of plastics. Kissan company must constantly innovative & reduce use of plastic where-ever possible. Also, following lean production practices, better logistical management etc, the company can help reduce the carbon footprint for manufacturing & distributing its goods.
To conclude, the above Kissan PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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