17219649 project-report-ashwani


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17219649 project-report-ashwani

  2. 2. MBA - 4th Sem. Roll No. E066009CERTIFICATEThis is to certify that research project titled “Analysis of various brands ofsoybeans refined oil in the market” carried out by Mr. ASHWANIPAHUJA under my guidance and supervision is an original research work.It is based upon both the primary data as well as secondary data andreferences are from published sources hence it proves authenticity of theresearch project.This research work is original and is an unpublished report. HARPAL SAINI Faculty Member CIET 2
  3. 3. ACKNOWLEDGEMENTThe research on “Analysis of various brands of soya bean refined oilin the market ”, was assigned to me as my major project.I have tried my best to present this information as clearly as possibleusing basic terms that I hope will comprehended by the widestspectrum of researchers, analysts and students for further studies.I am thankful to Mr. HARPAL SAINI , Faculty Member for hisguidance and support. Mere acknowledgement may not redeem thedebt I owe to my parents for their direct/indirect support during theentire course of the project. 3
  4. 4. CONTENTS S.No Contents Page No(s) Certificate AcknowledgementChapter-I (a) Introduction to the topic Executive Summary 5 (b) Introduction to Edible oil industry i Edible oil market in India 6-10 ii Processing of Soya Oil 11-12 iii Major Players in Soyabean oil 12-29 iv Preferable brands and price 30 V Retailers and customers want to say 31-32 vi Market strategy & marketing mix 32-41Chapter-II 42 i Objectives 42 ii Scope and Limitations 42 iii Research Methodology 43-44 Chapter- Analysis of Data 45-55 III and Findings Chapter- Suggestion of Retailers &customers, 55-57 IV Conclusion and Recommendations Bibliography 58 4
  5. 5. EXECUTIVE SUMMARYThe objective of this research is to determine the customer as well asretailers preferences regarding different soya bean brands which result intheir market share. It involves the study the consumers’ buying behaviorand attitudes towards a variety of attributes and factors, which help themin decision-making.Firstly, I took five brands of soya bean refined oils; for a comparativestudy. I got the companies’ broad background; their entry into thesegment, their positioning strategies of brands and other factorsaffecting the consumer’s buying behavior.Later I went through the process of filling the questionnaires from 50retailers & 100 customers selling and consuming soya oil, bothretailers and customers were taken into account to make this researchmore effective. Secondary data from various sources like magazines,a journal etc has also been taken.The findings showed that the retailers who sell various brands wantmore margin and various packages as well and customers want somediscount schemes and soya bean oil at reasonable price between 40-50,moreover they want after sale services.But, at the end the research was limited due to small sample size,small sample area and time constraints. 5
  6. 6. EDIBLE OIL MARKET IN INDIAIndia accounts for 9.3 percent of world oilseed production. It has the world’sfourth largest edible oil economy. Yet, about 43 percent of edible oil available inIndia is imported. In 1999 India ranked as the world’s largest importer of edibleoils, displacing China. The bulk of edible oil India imports under the OpenGeneral License (OGL) are RBD Palmolein of Malaysian and Indonesian originIndia has approximately 300 crude edible oil refining units. 60-70 percent ofwhich are small. Unlike the bigger refiners. The small ones are unable to importhuge quantities of crude either due to their low capacity or lack of financialresources, and may be forced to close down or sell out to the bigger ones in theforeseeable future.A major problem is the low capacity utilization. The installed capacity of oil mills isaround 36 million tones annually, but capacity utilization is only 40 percentsolvent extraction plants show only 33 per cent capacity utilization and vegetableoil refineries show 40 per cent.The total import of edible oils during the period form November 1998 to October1999 totaled 4.4 million tones valued at more than Rs. 9.000 crores. That wasagainst a demand –supply gap of 1.4 million tones in 1998-99. Imports havetherefore deluged the market.The import of relined palm oil was put under OGL (Open general License) inMarch 1994. Other edible oils were put under OGL in April 1995 (when an item isbrought under OGL, it means that the item can be imported without seeking anyapproval). 6
  7. 7. Originally, there was no discrimination between refined and non refined edible oilas far as import duty concerned. The duty on both was 65 percent. Duty was theslashed to 30 percent for both, then to 20 percent in 1996 and 15 percent in then1999-2000 budgets.On December 30, 1999 a differential duty structure was introduced. Duty onrefined oil was fixed at 27.5 percent (25 percent plus 10 percent surcharge) whilethat on crude was retained at 16.5 percent (15 percent plus 10 percentsurcharge) But only actual users (as opposed to traders) are allowed to avail ofthis reduced duty on crude oil. Traders are nevertheless allowed to import crudeat the reduced duty but only to sell to actual users on a high seas basis. Thisrequires that the actual users fills in the import documents (and pays the reducedduty) but leaves the importing process to the trader.In most parts of the world, the import duty on oilseeds is lower than that on oils.But, in India it is higher 40 percent. That is why no import of oilseeds of oilbearing material has taken place in India. The industry wants the duty to belowered from the present 40 percent to 5 percent.Edible oils prices in the Indian market have crashed due to large imports bymultinational trading houses see table. 7
  8. 8. IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S ECONOMYOilseeds and edible oils are two of the most sensitive essential commodities.India is one of the largest producers of oilseeds in the world and this sectoroccupies an important position in the agricultural economy and accounting for theestimated production of 25.14 million tonnes ofnine cultivated oilseeds during the year 2003-2004. India contributes about 8-9%of the world oilseeds production. Export of oil meals, oilseeds and minor oils hasincreased from 2.28, million tones in the financial years 2003-2004. In terms ofvalue, realization has gone up from Rs.2653/- crores to Rs.5447/- crores. Indiaaccounted for about 6.4% of world oil meal export.Types of Oils commonly used in India.India is fortunate in having a wide range of oilseeds crops grown in itsDifferent agro climate zones. Groundnuts, mustard/rapeseed, sesame, safflower,linseed, Niger seed/ castor are the major traditionally oilseeds. Soya been andsunflower have also assumed importance in recent years. Coconut is mostimportant amongst the plantation crops. Efforts are being made to grow oil palmin Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andamanand Nicobar Islands. Among the non-conventional oils, rice bran oil andcottonseed oil are the most important. In additional, oilseeds of tree and forestorigin, which grow mostly in tribal inhabited areas, are also a significant source ofoils. Figures pertaining to production of major cultivated oilseeds , availability ofedible oils from all domestic sources and consumption of edible oils (fromDomestic and Import sources) during the last few years are as under :-In Lakh TonneOil year (Nov- Production of Net availability of Consumption of October) oilseeds edible oils from all edible oils (from domestic sources domestic and import sources)1998-1999 247.48 69.60 95.821999-2000 207.15 60.15 102.112000-2001 184.40 54.99 96.762001-2002 206.63 61.46 104.682002-2003 150.58 47.28 90.932003-2004 251.42 71.09 124.04 (4th advance (Est.) (Est.) Estimates)2004-2005 248.42 73.10 117.10 (2nd advance (Est.) (Est.) 8
  9. 9. estimates)Source (i) Production of oilseeds, Ministry of Agriculture as Declared on 19-01-2005. (ii) Net availability of edible oils, Directorate of Vanaspati, Vegetable. CONSUMPTION PATTERN OF EDIBLE OIL IN INDIA.India is vast country and inhabitants of several of its regions have developedspecific preference for certain oils largely depending upon the oils available in theregion. For example, people in the South and West prefer groundnut oil whilethose in the East and North use mustard/rapeseed oil. Likewise, several pocketsin the South have a preference for coconut and sesame oil. Inhabitants ofnorthern plain are basically hard fat consumers and therefore, prefer Vanaspati aterm used to denote a partially hydrogenated edible oil mixture. Vanaspati has animportant role in our edible oil economy. Its production is about 1.2 to 1.4 milliontonnes annually. It has around 10% share of the edible of the market. It has theability to absorb a heterogeneous variety of oils, which do not generally finddirect marketing opportunities because of consumers preference for traditional oilsuch as groundnut oil, mustard oil , sesame oil etc. For example newer oils likesoyabean, ricebran and cottonseed and oils from oilseeds of tree and forestorigin have found their ray to the edible pool largely through vanaspati route. Oflate, things have changed. Through technological means such as refining,bleaching and de-odouraisation, all oils have been rendered practically colorless.Odorless and tasteless, and therefore, have become easily interchangeable inthe kitchen. Newer oils, which were not known before they have entered thekitchen, like those of cottonseed, sunflower, palm, oils or its liquid fraction(palmolein) soya bean and rice bran. About 60-70% predominately groundnutand mustard seeds are used to make non-refined or filtered oils. This tends tohave a strong and distinctive test preferred by most traditional customers. Theshare of raw oils refined oils and vanaspati in the total edible oil market isestimated at 42%, 48%and 10% respectively.MAJOR FEATURES OF EDIBLE OILS ECONOMY:-There are two major features, which have very significantly, contributed toThe development of this sector. One was the setting up of the Technology.Mission on Oilseeds in 1986. This gave a thrust to Government’s efforts foraugmenting the production of oilseeds. This is evident by the very impressiveincrease in the production of oilseeds from about 11.3 million tonnes in 1986-87to 24.8 million tonnes in 1998-99. there was some setback in 1999-2000 because 9
  10. 10. of the unseasonal rain followed by inclement weather. The production of oilseedsdeclined to 20.7 million tonees in 1999-2000. However, as per availableinformation. The oilseeds production in 2003-2004 is estimated to be 25.1 milliontonnes. The other dominant feature which has had great significant impact on thepresent status of edible oilseeds/oil industry has been the programme ofliberalization under which the Government’s economic policy allows greaterfreedom to the open market and encourages healthy competition and selfregulation rather than protection and control. Controls and regulations have beenrelaxed resulting in a highly competitive market dominated by both domestic andmultinational players.DEMAND FOR EDIBLE OILS RISES IN INDIA:-Indian food industry continues to show a strong commitment to oils importsfollowing drop in domestic demand, says industry body.Fresh figures from the Solvent Extractors Association of India (SEAI) revel thatedible oils imports increased by some 21 percent for the first six months to April2005.Imports jumped to 2.2 million tonnes in the first half of 2004-2005 up from 1.82million tonnes for the same period last year.Imports are expected to be much higher this year because of a drop in domesticoilseeds production, “said B.V. Mehta, executive director ofSEIA adding that India was likely to import about 500,000 tonnes per month thisyear.Purchases of edible oils by India are expected to reach around 5 million tonnesthis year from 4.4 million tonnes in 2003-2004 Mehta added reports the AmericanSoybean Association.Soya oil in particular saw strong growth. Imports of crude soy oil leapt to 735.352tones in the November 2004 to April 2005 period up from 236.990 tonnes in ayear earlier. Crude palm oil purchases rose 10.8 percent to 1.01 million tonnesfrom 911,520 tonnes.India’s oilseed output for 2005 is estimated to be around 21.8 million tonnes, afall of 6.4 percent from 23.3 million tonnes last year. 10
  11. 11. The processed food market is enjoying decent growth in India, pushing updemand for oils. The Indian branded food and drinks market grew last year byover 5 percent, according to recent figures from ACNielsen, outpacing the globalthe global average growth rate 4 percent.Supporting this buoyant overall trend, growth rates for individual productcategories within the Indian market too, reflect aggressive performance within thesimilar period.SOYA OILThe source: -Soya was developed in China even before the time of written records. The nameof the Soya bean comes from “sou” meaning “big bean” and is one of the fiveholy plants of the Chinese people 5000 year ago. The Emperor himself plantedSoya every year in a ritual ceremony.Nowadays, as a member of the legume family, it has an important position inecological agriculture. Legumes supply the soil with nitrogen and are thereforehighly suitable for use in the rotation of crops. In addition to its agricultural value,the soyabean also supplies especially healthy oil, which is making more andmore friends.The plant itself is a short bushy plant 20-180 cms in height. It is grown innormally cultivated fields in rows.Recently, there has been a massive boom in the production of geneticallyengineered soya bean, which can resist certain herbicides. Vast areas of northand South America have been planted with these GM Soya plants. The soyaused in the production of our oil is exclusively from organic farmers in Francewho belong to a cooperative near Albi. The cultivation association pay veryconscientious attention to ensure that No GM soya seed is used to the extentthat they produce their own organic seed.Processing:- 11
  12. 12. Soya is a basic component of the diet in Asian countries and forms the basis oftofu. Soya oil first cold pressing has a full aroma, which deliciously emphasizesthe natural flavor of your salads and raw dishes. Industrially refined soya beanoil is product which one should regard with particular skepticism; with regard toflavor and nutritional significance industrially refined soya bean oil has simplynothing to offer. When our soya bean oils is pressed, the whole oil mill is filledwith a magnificent aroma of fresh beans. The processor has to press some 10killos of soya bean in order to extract one simple litre of oils.Cooking:-It is not really advisable to beat cold pressed soya bean oil. Our soya bean oilshave a delicate bean like flavor. It is thus ideally suited to enhance salads ofhearty noodle, potatoes and beans. If you find the soya flavor to dominant, simplymix it with a little safflower oils.Health:-Soya bean oil possesses more than lecithin than any other oil. It is thus a realpower food for the bran and nervous system. Stress bound managers and allmothers with small children should always keep a small store of cold pressedsoya bean oil at hand:-- 100g of cold pressed soya bean oil contain 31.7 mg of vitamin E.- 13.7% saturated fatty acids.- 25.3% monounsaturated fatty acids.- 60.8% polyunsaturated fatty acids, of which 6.5% linolenic acid.MAJOR PLAYERS AMRIT BANASPATI CO. LTDAmrit Banaspati Co. Ltd a company that is synonymous with purity andgoodness, is poised on the threshold of the new millennium today. In a countryas diverse as India , nature has showered her best, in full measure.About the company :- 12
  13. 13. At Amrit Banaspati Company we have stayed close to our roots nature. Ourspecial understanding of nature and her ways have enabled us to grow form aVanaspati company to a multi product organization producing a whole range ofedible oils and fats.Today ABC has an installed capacity of 10,000 metric tonnes per month ascompared to a mere 3,000 metric tonnes per month in its first year of operations.This stupendous growth has been possible because ABC has continuouslyendeavored to bring new products to the Indian consumer and that end is R andD has played a key role.Further ABC has over the years introduced a range of refined oils namely,soyabean, groundnut, cottonseed, mustard and sunflower.With the objective of meeting the varied need of Indian consumer.Besides ABC also produces bakery shortening and confectionery fats and oilsamong other products that meet your specific needs.Most importantly, all our products meet the stringent international standards. Somuch so that ABC brands are household names today and have been honoredwith the “Monde Selection Medal of Brussels” on several occasions.TURNOVER :-The present turnover of Amrit Group is around 600 crores and of Rajpura unit isaround Rs.340 crores in terms of turnover. Amrit Banaspati company has beenranked amongst the top 100 companies in the India.QUALITY OBJECTIVES :-♦ Ensuring availability of all products in all packs sizes across the distribution channel.♦ Achieve growth introduction of new products (industrial and consumers) 13
  14. 14. ♦ Creating and sustaining quality and hygiene consciousness at all levels of organizing and promoting employees participation.♦ Organization and promoting employee participation.♦ Continuous enhancing the money of the customersQUALITY:-To ensure consistently in the quality of various products manufactured at Rajpuraand to further improve the quality of its various products, company has very goodquality control systems together with the research and development departmentwhich is comparable to the best in the country.It is to the credit of this good quality control systems and efficient R&Ddepartment that ABC Rajpura has been honoured and awarded with theAmerican International Quality Certificates and Gold Medal to the managementof ABC Rajpura a transworld tradefare selection award of recognition for theiroutstanding performance in the manufacture in the Gagan Vanaspati.PRICING STRATEGY OF ABC.Pricing decision effects the overall marketing skills and consumer acceptability.While the external forces in which the commercial establishment to operates hasto be taken on account the but the internal forces, its strengths and weaknesses,the company objectives etc. have the viewed in the competitive filed. Edible oilprices is affected not only because of national and international market variationsbut because of internal factors such as government raw oils import policies pricesof other oils used in mixture and the total expected output of oil need crops. Theinterstate ban on supply of raw oils also affect the pricing of the product.While marketing the price structure the marketer has to watch carefully thepricing strategy adopted by the competitors the pricing structure whichrepresents the margin to the distributors, retailers etc has an impact on the salesof the product, the pricing structure of ABC Rajpura is as below :-3-1/2 percent dealers margin.5-1/2 percent retailers margin 14
  15. 15. ABC Brand also covers the distributors on restrospective basis if there is anyprice fluctuations thus a safe play for the distrubutors and retailers too.DISTRIBUTION OF PRODUCTS:-Distribution of the products is the main objectives of the marketing process. It isthe process of transferring the product from the producers to the distributors andultimately to the consumers through retailers. The decision regarding thechannels of the distribution is very important decision from the company’s pointof view because the selection of channel affects considerably the other marketingdecision.Amrit Banaspati has adopted three tire Distribution :-PLANT , DISTRIBUTERS , RETAILERS , CONSUMERSAll the products produced at ABC Rajpura are sold in the area of Punjab, Haryana,Rajasthan, J&K, Himachal Pradesh, West Bengal and Chandigarh through 130depots and 575 stations. Number of dealers engaged in distribution of Amrit Banaspati’sproducts are around 670. FORTUNE SOYABEAN OIL Fortune Refined Soyabean Oil is light, odorless andhealthy oil. Most importantly it contains OMG3 (Omega – 3 fatty acids) – an essentialPUFA which needs to be supplemented from outside sources. Soyabean oil is thepreferred oil of many a household across the world.Fortune Refined Soyabean Oil, enriched with OMG3, gives you andyour family “Paanch Ka Aashirwad.”Fortune Refined Soyabean Oil is the highest seller in the refinedsoyabean oil category with 44% of the market share (As per ACNielsen Retail Audit Index - MAT Mar.06).Paanch Ka Ashirwad is for: 15
  16. 16. 1 Healthy eyes 2 A strong heart 3 The nourishment of the womb 4 Controlling diabetes 5 The healthy growth of your childrenFortune Refined Soyabean Oil is available in… Liner carton200 ml Pouches200 ml, 500 ml, 1 ltr Pet bottles500 ml, 1 ltr, 5 ltr Jerry cans2 ltr, 5 ltr, 15 ltr Tins15 ltr, 15 kg Maha Fortune15 ltr 16
  17. 17. The end-users of our products are: households and institutional buyers[catering / hospitality / processed food / snacks] set-ups. AWL has setup a strong distribution network of Company Distributors and SuperStockists for its retail operations. This chain helps to tap even thesmall retailers/traders and thus increasing our reach.Today AWL has its distribution foot prints all across the country with various stock-points catering to more than 3800 distributors, 600 Super Stockists and numerousbrokers and other trade associates. AWLs retail reach is more than 500,000 outlets acrossthe country and this retail reach can be compared with the best FMCG giants in thecountry Title Publication Date Trusted Brands Award Readers Digest May 2006 Winner Gujarats rising star Business India May 07 2006 Oil buckle under as Economics Times February 02 2006 trucks 17
  18. 18. Health to the people Brand Reporter February 01 2006Fortune Mission Extra Health was undertaken by AWL in Mumbaibetween October-November 2005. The core objectives for undertakingMission Extra Health were to: • Create high brand visibility and awareness • Create top of the mind recall as a healthy oilThis activity was aimed at health conscious people of Mumbai. Height,weight, body mass index, blood pressure, blood sugar, cardio vascularcheck-ups were done of the individuals who participated in thisprogram. Each participant was handed a health check card, by thedoctor, with a rating system as to the position of his or her health.The duration of the Fortune Mission Extra Health activity carried out inMumbai was for 40 days covering 19 Parks, 17 Residential colonies, 4Malls, 4 Clubs, and 54 areas by the means of Road Show.This activity received a tremendous response. We also got excellentpress coverage as the Fortune Mission Extra Health activity wasreported in various newspapers. There was a very good increase interms of brand awareness and overall the activity was a huge successAdani Group with its turnover exceeding Rs.17000 crores (US $ 3.7 billion) in2005, is one of the fastest growing corporate houses in India . Its flagship company –Adani Enterprises Limited (formerly known as Adani Exports Ltd), is one of the largest 18
  19. 19. trading companies in India with Five Star Trading House status (Highest status conferred by the Govt. of India). • Adani Exports trades in nearly 40 commodities in more than 55 countries around the world. • The Group owns a fully functional multi-purpose port at Mundra in the Gulf of Kutch, Gujarat. • Another Group company Adani Retail Ltd. is into retailing, and has opened 55 super stores in Gujarat known by the name of Adani Supermarkets. • The Group has also set up a BPO in Ahmedabad, iCall India Ltd. which caters to both International and Domestic clients. • Adani Group is also involved in infrastructure development which includes developing a Natural Gas distribution project building a township and an SEZ at Mundra.Adani Group has emerged as an integrated and diversified group withleadership in the areas of global trading, edible oil manufacturing andinfrastructure development.Wilmar Holdings is one of the worlds largest trader and refiner ofedible oils. With consolidated sales of US $ 5 billion in 2005, thegroup is: • The largest palm oil refiner, palm kernel crusher and specialty fats manufacturer in Indonesia • The largest exporter of palm and lauric oils, palm kernel expeller and related products in Indonesia • The largest soyabean crusher in China .The groups global sourcing capability, cost effective processing,extensive distribution network and logistics capability, including its ownfleet of tankers, allows it to respond quickly to changes in marketconditions and deliver products on a timely basis to its customers.The company has strategically located its refining and processingfacilities to both cater to different parts of the country as well asharness the potential of oilseed growing areas. The locations are at 19
  20. 20. Mundra (Gujarat), Mantralayam (Andhra Pradesh), Bundi (Rajasthan)and Haldia (West Bengal).AWLs largest state-of-the-art refinery is based at Mundra in the Gulf ofKutch in Gujarat . The technology has been imported from De Smet ofBelgium and Alfa Laval of Sweden . The quality of oil is at par with bestin the world, meeting USFDA standards. AWL refined oil goes throughthe strictest quality controlled and computerized manufacturingprocess with online monitoring.AWLs Mundra refinery was started with an initial refining capacity ofthe 600 Tonnes per Day (TPD) and after the recent expansion; Mundrahas a consolidated refining capacity of 2200 TPD and hydrogenationcapacity of 350 TPD. This refinery is a model for backward integration,starting from transportation of oil through pipelines from port to theplant, to in house packaging material manufacturing like; blow-molding facility, corrugated box plant, tin manufacturing facility andmulti-layer packaging film plant. In addition to this is a 4 MW captivepower plant that provides uninterrupted and hassle free electricity.Such integration provides an edge in maintaining highest qualitystandards & a competitively priced product.This plant was acquired from ITC & is reputed to be one of the bestplants in India for sunflower oil production. The plant has a capacity tocrush 450 TPD of seeds and refining capacity of 180 TPD oil. Located inclose proximity to the sunflower-growing belt of Andhra Pradesh andKarnataka, this plant is also suitable for crushing and refiningSoyabean and Groundnut oil. It was strategically acquired to cater toSouth India s demand for Refined Sunflower Oil.This plant was taken over from RICO industries. It has a capacity tocrush 450 TPD of seeds and refine 150 TPD of oil. The plant providesideal location for processing both mustard and soyabean. Apart from itthere is also a processing facility at Jaipur, which produces thepremium quality pungent mustard oil packed as Fortune "Kachi Ghani", 20
  21. 21. exclusively to cater to the taste of pungent and pure mustard oil ofeastern India .This plant was acquired from Acalmar, and has a capacity to refine600 TPD of oil. This plant provides ideal location for supplying toEastern parts of the country. It also has excellent facilities tomanufacture Speacilty Fats, which is an alternative for Vanaspati.In addition the to the above refineries, AWL also has packing operations at• Chatral [ Gujarat ]• Latur [ Maharashtra ]• Jaipur [Rajasthan]• Dharwad [Karnataka]• Cochin [Kerala]Dewas [Madhya Pradesh]The Ruchi Soya Industries LimitedRuchi Soya Industries Limited is an agro industry of Rs 3081.60 crores turnoverRuchi Group. It is the flagship company of one of the five companies of thegroup. The group has an impressive net worth of Rs 401 crores (Rs 4010 million)and assets worth Rs 682.75 crores.The company was founded by industrial visionary late Shri Mahadeo Shahra andat present is headed by his eldest son Shri Kailash Shahra, who is the Chairmanof the Group. Shri Kailash Shahra has enhanced the vision by transformingcountryside of Madhya Pradesh into Soya bowl of the nation.Ruchi Soya Industries Limited (RSIL) is Flagship Company of Ruchi Group. It ismost integrated Soya processor and first company in the country to export Soya 21
  22. 22. meals, manufacture edible grade Soya flour and textured Soya proteins in India.Its brand `Nutrela enjoys market leadership in the Soya product segment. RSILis leading player in vegetable oils, Soya flour and vanaspati products. Itcommands large share of market. Three generation experience, integratedvision, entrepreneurship and industrial competitive spirit has not only expandedthe reputed business but has led to diversification in closely associated venturesincluding foreign collaborations.Ruchis Soya ProductsRuchi Soya Industries Limited (RSIL) has a large team of experts, technicians,scientists, administrators who are involved from the very beginning of theprocess of selection of soyabeans, processing and transporting them to mostadvanced plants. The products are produced under the supervision of an expert.The competent quality control team keeps close watch right from the beginning todispatch to the dealers.The products are marketed throughout the country and even in wide rangeinternational markets. Strict quality control has developed enhanced faith,reliability and confidence of customers in the Ruchi products.The Company offers a great range of products in Soya foods and Oils as well. Itsrange of Soya Foods include Nutrela Soya Chunks, Nutrela Soya Mini Chunks,Nutrela Soya Granules, Defatted Soya Flour, etc. The range of oil offers a varietyof low cholesterol health prone products such as Soyumm (Pure refinedSoyabean Oil), Sunrich & Pamban (Refined Sunflower Oil), Nutrela Vanaspati,Mandap (Pure refined mustard oil ).It also offers Soya products such as Prosoy (Soyabean Meal) and Ruchithin(Soya Lecithin).Soyumm (Ultra Refined Soya Oil) It is pure sparkling, odorless oil manufactured from selected golden yellowSoyabean with sophisticated, advanced, most modern technology preservingand enchanting natural flavor, taste and nutritive value of the food stuff cooked. It is healthy medium of cooking and recipes. High in nutrition, low in calories It ishigh in poly - unsaturates with approximately 55% and low in saturates. One tbsp of Soyumm gives approximately 120 calories. It has 15% lesssaturated fatty acids hence it helps in controlling cholesterol levels. It is rich invitamin E. According to medical experts, it is good source of essential amino acids, whichare required for good health. Boon for cooking medium In chemical terms, it is 22
  23. 23. tasteless but develops taste of the recipes cooked. It does not have irritating odorand enhances flavor of the items cooked. It adds to the nutritive value of the foodcooked making it more tasteful. Earns admiration of the Housewives andcooks alike. It prepares nutritious, health effective recipes maintainingwholesome taste. Guests and host will enjoy the dishes in their natural enhanced flavor cooked insparkling clear, odourless flavor preserving cooking medium of Soyumm.Cookshanced flavor cooked in sparkling clear, odourless flavor preservingcooking medium of Soyumm. Cooks will earn smile and admiration. Universal Cooking Medium Soya oil is used world wide as a cooking medium.Most of the hotels, restaurants, eateries use Soya oil as cooking medium. Youmust have tasted recipes cooked in Soya oil but find the difference in dishescooked in Soyumm. It stands unique.It is economical and you home ministry and finance ministry will love it.Applicable and availability Ruchi’s Soyumm is available in bulk for industrial usesuch as in manufacture of mayonnaise, salad dressing, margarines, vanaspati,shortenings, surface coating and fish canning industries. For domestic use, it isavailable in 15 kg tins and branded consumer packs of ½ lt. and 1 lt. polypacks at all wholesale and retail outlets. Soyumm Soyumm Soyumm Soyumm (5 Ltr Jar) (15 Kg Tin) Soyumm (1 Ltr Pouch ) (1Ltr Bottle) (15 Kg Jar) 23
  24. 24. Soyabean OilSoyabean oil is the worlds largest source of vegetable oil. It is grown extensivelyin the U.S.A., as well as South America and China. The North American Soyaharvest, which takes place around October each year, historically tends todetermine the prices of most other major oils, although in recent years the NorthAmerican crop has increasingly come under pressure from South AmericanSoya, which is harvested about March, and from European Rapeseed, which isharvested about July. Soyabean is also extensively grown in India. MadhyaPradesh is known to be the Soya bowl of the country.Typicalcomposition %Saturates 15Monounsaturated 23Polyunsaturated 62 Soya Oil contains higher levels of poly-unsaturates (which break down on beingheated) than, other such as Rapeseed Oil or Palm Oil. This gives the oil itsspecial characteristic of healthy oil. It is particularly attractive as a food ingredientand in the production of margarines and spreads. It provides a healthy, nutritious and delicious cooking medium. The oil hasspecial advantage over other oils as it is low in calories due to higher level of polyunsaturates. It is also a rich source of Vitamin E. Due its safe use for heartpatients it is being used by millions of housewives and cooks all over the world. Ruchi’s Soyabean oil – Soyumm is a delightful, odourless, healthy oil which is apleasure to the health Great Offers Get a 15 ltr Bucket free with every 5 ltr Sunrich Jar* * Special offer for our customers from Chennai** Get a free gift on every purchase worth Rs. 250/-Bangalore** Offers*Get a pack of Tiger Biscuit free on every 5 litrepurchase of Ruchi Gold - Palmolein oil 24
  25. 25. *Get a pack of Cashew Biscuit free with every 5 litre purchase of Sunrich --Sunflower oil*Get 500 ml Nutrela Vanaspati free with every 15 kg purchase of Sunrich --Sunflower Shop in Bangalore Shop in ChennaiCARGILL LTDThere is a precedent for this phenomena. In Indonesia, the recentfood riots were largely caused by massive imports of soyabean oil, onwhich the Indonesian people had become cripplingly dependent.When the Indonesian currency collapsed, the retail price of soyaescalated, making the cooking oil far too expensive for the bulk ofthe people to afford. India would be put in a similarly vulnerableposition if we were to become dependent on imported soya forcooking oil.But even if it were not genetically engineered, is soyabean oil reallybeneficial to the health of the Indian people? To begin with onecannot trust the large cereal merchants, such as Minnesota-basedCargill Inc., who are notoriously only concerned with the `bottomline. For one thing it is an established fact that Cargill indulges inwhat has been euphemistically referred to as purposefulcontamination or blending and, if they can get away with it, withany kind of dirt, cracked grain, high moisture or anything that ishandy and cheap. If the moisture content of a consignment exportedby Cargill is down to 12 per cent and the contract allows for 14 percent, they will add water to it so as to bring it up to the maximumallowable level. As David Senter, the Washington representative of 25
  26. 26. the American Agricultural Movement notes, `all the grain companiesoperate in the same way. Indeed, as a Cargill superintendent statedin a story published in 1982 in the Kansas City Times: `If we havegot a real clean load of grain we make sure we hold it until we canmix it with something dirtier, otherwise we would be throwing moneyaway. In addition, whereas the oil extracted using cold pressingindigenous methods is fresh, nutritious, unadulterated, and retainsall its natural flavor, oil from soyabeans, because of their low oilcontent, is extracted in large solvent extraction plants and requiresvery much more chemical processing, among other things with theuse of volatile solvents, a method which was first applied in the USfor the recovery of grease from garbage, bones, cracking, and otherpacking-house waste. The main solvent used is food-grade hexane.It is supposed to be extra pure, but some believe that it is oftenadulterated with much cheaper, commercial, hexane, which is notpure and contains various hazardous substances such as the toxicbenzene.In any case soyabean products, by their very nature, contain anumber of toxic substances at concentration levels which posesignificant health risks to humans and animals. They contain trypsininhibitors, which inhibit the pancreatic proteases of animals, causingan increase in pancreatic size and weight and proliferation ofpancreatic acinar cells. The stress on the body due to an overactivepancreas leads to growth depression, and can also lead to pancreaticcancer. Soyabeans contain lectins, some toxic, which bind withsimple and complex carbohydrates, and can interfere with themicrobiology of the gut and with the proper functioning of theimmune system.Advertisement 26
  27. 27. CargilllaunchesActiLiteoil Mumbai: After the resounding success of its flagship Nature Fresh brand of brandedpackaged food products, Cargill Foods has launched ActiLite, a new refined blended oilthat is light and good for health.ActiLite is a refined blended oil that contains the power of two — the lightness ofsunflower and the nutrition of soyabean. ActiLite offers a right balance of three kinds offat (MUFA, PUFA and SFA) and is, therefore, a healthy well-balanced oil.ActiLite provides the added advantage of being a light oil because of its excellentrefining process, which removes all impurities, colour pigments and wax, making italmost transparent and very light.ActiLite is available in transparent packaging, which has been the hallmark of NatureFresh Oils, and allows the consumer to see the lightness of the oil before they purchase it.ActiLite is available across India and is priced at:SKU West Bengal / Bihar / Jharkhand / J&K /A&N / NESA Rest of India1 L pouch 61 592 L pouch 130 1265 L pouch 315 305Cargill is one of the biggest food companies in the world having more than 130 years ofexpertise in food grain selection and processing. It is the worlds biggest producer,processor, and refiner of sunflower oil. Cargill has made quantum leaps in the smallperiod of two years in the Indian food market.Having entered into the Indian market recently, Nature Fresh today is the second-largestmultinational atta brand in India and has a steadily growing market share in all theregions. The brand has also attained a double-digit market share in the branded refinededible oils category, and has made good inroads in the basmati rice and salt categories aswell.Headquartered in Minneapolis, Cargill Foods is a $45-billion company ranked 45 th insales in the Fortune magazines Global 500 and fifth among the companies in theprepared foods category in the magazines ranking of the top 250 global food companiesin 1999 27
  28. 28. ProductDhara has 23 variants of mustard, rapeseed, sunflower, groundnut andsoyabean oils in its product basket. Dhara Refined Vegetable Oilcontributes 50% by value, to the Rs. 3,300 million turn over Dharaenjoys.Despite being primarily a support to the small-scale Indian farmer,Dhara has played a crucial role in changing the industry norms andenriching the sluggish edible oils market. For instance, the brand wasthe first to change the weights and measurement descriptor from thekilo regimen to the litre regimen.The consistency that it has managed to maintain has won the brandsupport from consumers and stockists alike.Dhara is possibly stocked by more retailers than any other packagededible oil brand in the country.So profound has been the impact of Dhara on the Indian market thatconsumers often ask for the Green Pack. This has led many players inthe industry to themselves switch to this colour.PromotionThe brands promotions have always evoked enthusiastic response fromconsumers. This trait has been evident right from the firstadvertisement of Dhara that appeared in 1988, talking of the true priceof oil.At that time the market was mostly dominated by unbranded oils, soldloose.Dhara faced the challenge of converting the consumer to the qualityand reliability of packed and branded oil. The campaign for DharaRefined Vegetable Oil was a classic case of a promotion that succeededin reinforcing all brand attributes: taste, purity, consistency, freshnessand a product that offered consumers value for money. Consumerswere converted to the goodness of Dhara with the base line: Anokhishudhta, anokha asar. 28
  29. 29. MarketAfter salt, edible oils are possibly the most important ingredient incooking. One of themost interesting facts about household consumption patterns in India isthe high rate of growth of branded edible oils. Even today, especially inrural India and small towns, the majority of households purchasecooking oil from the nearby oil press or the grocer who sells unbrandedoil that comes in wholesale packs. Till about fifteen years ago brandedcooking oils were seen to be an item of middle class and eliteconsumption, mostly produced by multinational companies throughtheir Indian arms. Dhara, with its Operation Golden Flow changedthese traits of the Indian edible oil market forever. Created andconceived by the farmers cooperative movement, Dhara is perceived tobe distinctly Indian in a very earthy way.In the last three years the percentage of households using brandededible oils has almost doubled. The total size of the indigenouslyproduced and branded edible oil consumer market in India is about360,000 metric tonnes per year, consumed by some 29 millionhouseholds (Source: ACNielsen Retail Audit). In the highlycompetitive consumer-pack user segment for branded edible oils,Dhara has the largest market share at 10.9%. It has a total consumerbase of 3.05 million households (Source: IRS 2002), while its turnoverexceeds Rs. 3.3 billion.The market is segmented by diverse regional preferences for specificedible oils. Groundnut and sesame oil hold sway in West and SouthIndia; even though coconut oil is also popular in some segments of thelatter market. Mustard is a very strong choice in the East and the North.Soyabean oil sells predominantly in Central India and the North-West,although its usage is increasing across the country. Sunflower oil isused virtually all over the country. Significantly, Dhara is the firstbrand to produce all these varieties as part of an umbrella strategy. 29
  30. 30. Achievements Dhara is at the forefront of the branded edible oil market, leading its consumer pack segment. It has also been rated by ACNielsen as being among the top five fastest growing brands in the FMCG sector in India in 2003. Through its value creating strategies and emphasis on purity and quality, the brand has consistently created benchmarks for the entire edible oil industry, including Indian subsidiaries of multinational brands. It has successfully addressed the changing needs and tastes of the consumer and introduced variants from time to time. Dhara can also justly take credit for bringing world-class practices in packaging of edible oil to the country. It introduced tamper-proof aseptic packaging to guarantee that only the purest quality reached consumers. Even today, Dhara is the only edible oil in the country that uses the tetra pack technology with six-layer packaging and undertakes more checks and tests than any other brand in the industry. Tetra packs allow the oil to be packed without the use of additives for maintaining shelf- life. Dharas light weight and hygienic five-layered PET jar with a double handle arrangement was developed during 1997/98, making the clear refined sunflower oil visible to consumers, further adding to their confidence in the brand. This pack has won a series of awards – India Star 98 in Mumbai, Asia Star 98 in Beijing andPREFE RA BLE BRAN DS& PR IC ERAJP UR A BRANDS PACKIN PRICE G 1 LTR Rs. 51 GINNI 5LTR Rs. 275 15LTR Rs. 765 30
  31. 31. 1 LTR Rs. 50 GEMINI 5LTR Rs. 270 15LTR Rs. 757 1 LTR Rs. 48.75 MAHAKOS 5LTR Rs. 260 H 15LTR Rs. 747 1 LTR Rs. 49.50 AMBUJA 5LTR Rs. 265 15LTR Rs. 745 1 LTR Rs. 53 FORTUNE 5LTR Rs. 285 15LTR Rs. 775 1 LTR Rs. 50 GOKUL 5LTR Rs. 270 15LTR Rs. 740 1 LTR Rs. 54 DHARA 5LTR Rs. 285 (fit n fine) 15LTR Rs. N.AWHAT RETAILERS HAVE TO SAY 1) Low margin: - Most of the retailers complained that they get very low margin in all the products of ABCL as compared to its competitors that’s why unable to sell the local brand . 2) Leakage problem: -The retailers also complained about the leakage problem faced by them in the cartoons of Ginni and no replacement, but other companies are giving them full replacement of leakage packages. 3) Feed back problem: - The retailers also complained that they get very less feed back from the company, like whenever any scheme is introduced by the company, they are not even made aware of the scheme. 31
  32. 32. 4) Quality problem: - The retailers also said that sometimes the quality of soya oil is low they have face problems regarding their image 5) MRP Problem :- Retailers also complained that in the days of rising prices, sometimes it happens that MRP of ginni products is less than the price at which they have purchased it from the distributor. 6) PROBLEMS related to new products :- they complained that sometimes they are even unaware of companies new productsWHAT CUSTOMERS HAVE TO SAY 1) MRP problem :- customers complaint that sometimes they have to pay more price then the MRP 2) Leakage problem:- customers even told that sometimes they have to face leakage problems 3) PROBLEMS related to new schemes : customers complaint that even sometimes retailers don’t even tell about new schemes 4) DISCOUNT schemes:- customers complaint that there are very less discount schemes on soya oil as compared to other refined oilRECOMMENDED MARKETING STRATEGYThe market strategy of the firm is a complete and unbeatable plan or an instrumentdesigned specially for attaining the marketing objective of company. The formulation ofthe marketing strategy consists of two steps :-1. Segmentation & target market selection.2. Assembling the marketing mix. Market Segmentation And Target Market SelectionMarket segmentation and target market selection have an intimate relationship withmarket strategy formulation. 32
  33. 33. The company may focus on the following factors while laying down the target market.1. Geographic SegmentationGeographically the country can be broadly divided into 3 sub segments -Rural, Suburban and Urban.In the first phase(after the test launch), Urban parts of the country should be targeted. The chosen segment is targeted because –• Lack of infrastructure.• The consumption pattern & behavior in Rural India does not fit with the product attributes and perceived benefits.• The limitation of disposable income is another factor that hampers entry in Rural areas.• Semi-Urban may be considered in the second phase. An year after the launch.Within Urban India, the cities with 1 million + population i.e. top 23 metros will be targeted. A soft launch of the brand should be undertaken before taking the brand to these areas. This (test launch) will be undertaken in Bombay, since it (Bombay) is a high consumption city.2. Demographic SegmentationThe demographic variables have been separately addressed to arrive at the target audience. • Age: 30-40 years + segment of the population is recommended to be targeted. • Family Life Cycle : In terms of family life cycle it is addressed at all of the following : 1. Old people who are suffering from heart diseases. 2. Married people who are health conscious. The brand may positioned such that it fits all stages of family life cycle. • Income : The income segmentation may be all households with an annual income exceeding Rs. one lakh. Targeted audience may be all households that can afford a television or have access to satellite television.3. Psychographic Segmentation Social Class : In terms of psychography the social class targeted is the educated upwardly mobile urban middle and upper class. . 33
  34. 34. Life Style : In terms of lifestyle, it may be aimed at those who favor buying convenience products. They are also willing to experiment with alternate products in place of conventional food items.4. Behavioural Segmentation The moulded segment of the market is perceived to be the growth engine of the market. Hence, this segment is quite lucrative for a new brand launch. This segment comprises of people who like to have chances and want to try new things.5. Usage Rate The market may be further segmented on usage rather than attitude. TARGET AUDIENCEFollowing from the above, it is recommended to target consumers whofound other refined oils too heavy. Usage rather attitude is being used tosegment. There are 181 million urban individuals in India Our targetsegment is people living in the top 23 metros (1 million +population), whichimplies 63 million people. SUGGESTIVE MARKETING MIXThe objective of the marketing mix developed is:“To develop a product that is available, affordable, based on local rawmaterial, and adapted to the taste and the nutritional habits of thepopulation”.The elements of the mix - Product, Price, Place & Promotion have been entailedbelow : Product 34
  35. 35. The two most important segments of the market are Moulded and Countlinesegment(segments have a high share of the market). Also, it can be seen in thefindings, the Indian consumer does not recognise the difference betweenMoulded and Countline segment. Further, a key decision that needs to be takenis to decide whether to have a core brand focus or have a plethora of brands.Here, it would be advisable to launch a complete basket of products coveringboth the countline and the Moulded chocolate segment (at least if not Panned). Arange of brands can help cushion out risks over the entire offering. Also, it hasbeen that to sustain in the long term, a complete portfolio of chocolates for everytaste is essential. However, a concentration strategy may be adopted in the firstphase, focusing on one core flagship brand.The various product attributes have been mentioned below : • Stipulations regarding the use of Hydrogenated Vegetable Oil-HVO (since it contains nickel) may be adhered to. Nickel in chocolates can cause cancer. However, research is still on to prove this. Product formulation should keep this aspect in mind. • Packaging : The packages or the cover packs, of the brands can be in Blue, Green and Red color which represents a fun element so that the customers don’t even realize that they are taking oil due to Dr’s recommendation. The packaging should keep the product fresh and protected from the harsh climatic conditions in the country, and hence provide a longer shelf life. • Sizes : As can be seen in the findings the most popular size is litres should be used. . • Shelf Life:-The product should also have a high shelf life with a good shelf appeal as well..Product DifferentiationSince, there exists strong competition from heavy weights such as FORTUNE ,NATURE FRESH AND SOYUMM, the product offering should be welldifferentiated. 35
  36. 36. PricingFactors like competition, internal costs, the poistioning and corporate objective ofthe company need to be taken into consideration by a company before pricing aproduct.Premium pricing (relative to the competing brands), with special emphasis ontaste and quality (most important attributes-see findings) is recommended. Thepremium pricing does not suggest that the offering is made unaffordable to thetarget consumer. A high price would not accompany a promise for a better tasteand quality.Further, the product category is relatively inelastic i.e. consumers would not stopbuying their favourite brands if the price is increased by a few rupees (seefindings). Consumers feel that even if the price of their favourite brand isreduced, they might not buy more of it. PlacementThe success of any FMCG product thrives on distribution. Factors like financialcost effectiveness) perishability of the product, repeat orders; managerialcapacity and unit value of the product need to be carefully analysed while settingup the distribution framework of the company. The product category is essentiallya “pull” market. However, the channel members provide greater visibility to theproduct.Recommended Distribution LogisticsThe first task in hand should be, to effectively map the territory into smaller moreaccessible and controllable units. An effective territory mapping needs to be done notonly to provide an efficient coverage of the market but also to provide growth 36
  37. 37. opportunities to the constituents (stockists), as the company grows. The recommendeddistribution chain would be as follows:Carrying & Forwarding Agents: These may be appointed at two or more State(s) ofoperation of the company. Carrying & Forwarding agents work on a commission basis –3% (industry norms) of the goods handled. It is recommended that the country keepsabout 4 to 6 weeks of inventory at the C&F level and a commission structure which is inkeeping with the industry norm. Therefore a 3 percent commission on the invoice valuemay be provided to the agents.Stockists : A stockist provides a local delivery point for themanufacturer/marketer. They store the products, break bulk, and distribute tothe retailers. With greater no. of retailers now seeking credit from the retailer,efficient management of collection has become a vital part of the stockists’ job.The main problems that new product faces is that of getting experienced andeffective channel members. As existing marketing marketer/manufacturer canpiggy back on the existing channel structure. A new company will have to providegreater incentives convince channel members to stock the product offering.Hence, an innovative means of channel handling needs to be adopted:• Competitive commission to the stockists-around 5.66% on the invoice (industry standards 5.66%)• The efforts of the sale representatives employed by the stockists to get orders may be supplemented by the manufacturer’s sales force. 37
  38. 38. • Retail outlets to be serviced at least four times in a month (atleast once a week)• Distributors (stockists) to maintain stock of not more than 15 to 20 days• Since, distributors are to maintain airconditioned godowns, in summers the A/C expenses may be borne by the Co.Wholeseller : Wholeseller’s prime concern is buy in bulk and sell at the fastestrate. The aim of any distribution chain of mass-market product category like soyaoil would be to expand its reach i.e. the no. of outlets storing its products. Thismay not be possible even with a well established stockist network. Hence,wholeseller’s paly a significant role in supplementing the stockists’ effort snd inproviding a better reach to the product.Retail Outlets : It is extremely important for any chocolate brand to have a wellentrenched retail presence. Reach Is the key.The first stumbling block for a new brand/product is, to convince the retailers tostock the offering. Retailers want smaller quantities at shorter intervals. Hence,retailers may be convinced by offering smaller quantity options to them. Also,retail margins provided may be higher than the industry than the industrystandards (industry standards range from 8.5% to 9.5% of the MRP). Themargins offered can be around 9.75% of the MRP. PromotionThis involves communicating persuasively to the consumers, in order to arouse theirinterest in the product. A detailed promotion plan involving advertisement, salespromotion and public relations is proposed..Advertisement PlanThe Advertisement plan could be as under: 38
  39. 39. Corporate objective: The corporate image should be built over a period of time,so as to reinforce consumer confidence in the brands of the company. This isalso essential to counter competition, since over a period of time, names such asfortune , nature fresh and soyumm have attained high levels of recognition andassurance.Advertisement Objectives• To position the product as a “high quality brand, with a wide range of offering, providing, fun anytime, anyplace products”.• To create awareness about new arrivals of soya oil.• Induce consumer trials.• Build corporate image• To undertake competitive advertisement.Message: The message design will be consist of following;• Appeal: it should be appealing one• Presentation: should be well presentable• Message Source: For print media the message source will be the copy part and creative advertisement design. For electronic media, the source will be whole family unit, younger enjoying the food.Media• Print Media: Will be the major magazines read by the target segment i.e.., India today, society, femina, stardust etc..• Electronic Media: Since the whole of target segment watch Satellite TV during prime time and advertisement will be featuring share for 3 or more time to leave an impact.Public Relations:I. The company will hold a press conference announcing its arrival in India and will highlight its global achievements. 39
  40. 40. II. Company has plan to sponsor events like 2 viz., skiing river rafting, yachting etc.III. Company will also sponsor fun based TV programs.Sales promotion Activities: To induce consumers to try the new product and toget the product pushed in the market the sales promotion plan should include thefollowing :Trade promotion: The Company will have to offer lucrative trade promotionschemes, in order to push primary sale. These include incentives to stockists forpushing the sale of oil. At the retail level, the following trade promotion measuresmay be adopted:• Schemes such as , a certain percent off on the purchase of Rs 5000 or Rs 10,000 worth of oil.• A 15 ltr tin free with every Rs50,000 purchase.• Shop DisplaysApart from these, WindowShelf space may be purchased outright.Consumer Promotion: Some of the consumer offers that could be introduced are :1. Free gifts like pen, soaps etc., on return of oils wrapper2. Money Savers3. The Company can announce consumer “contests” (with proof of purchase) with attractive prizes, supplemented by an advertisement campaign.. MARKET TESTING PLANThe company should test the product before it goes national (23 metros with million+ population). This is so because:1. It would reduce the risk of failure in the market where it goes national, by validating the marketing mix.2. Facilitate validation of positioning. 40
  41. 41. 3. Allow corrective action through incorporation of consumer feedback.For test marketing the SOYA OIL, the plan may be as follows:1. Test Objectives: To validate the brand names, new outlets, etc and to measure the sales volume, pricing and promotion policy. Competitor reaction can also be analysed.2. The product may be launched in Bombay ( as a soft(test) launch). This selection was based on : • Bombay is uniformally represented by the target segment IMPLEMENTATIONA well designed marketing plan counts for nothing, if not implemented properly.Success in the market place depends upon the way the plan is implemented. Thelaunch is recommended to be before winters-say September or October, since –• That period would facilitate high Diwali sales, and• During winters people prefer more oily and fried as well as junk food so consumption is more .The success of the brand would largely depend on the following:• Sales Distribution Network• Quality standards• Research and Development-continuous innovative products 41
  42. 42. • Technology supportBefore the launch the following should be ensured:1. Product literature to the sales department to be provided & Training to sales staff2. Feedback of sales staff regarding product competition3. Feedback of other departments like sales forecast to the production department, R&D for product modification.Finally, in order to ensure long term success of the product• Company should have a personnel department., which will handle employers related problems.• Company should set up an “operational department” which will be for helping the distributors and the retailers.The marketing team must maintain a “Management Information System”consisting of *Sales reports * Consumer feedback * product OBJECTIVE OF THE STUDY Research would be carried out based on these objectives. 42
  43. 43. 1) To find out customer preferences towards different brands of soyabean oil2) Market share of each brand towards total market share of soyabean oil3) What is the margin retailers are getting from various brands & what are the brands they want to sell4) What problems are they facing related to new or various products5) To get the feedback from retailers & customers as well SCOPE & LIMITATIONS OF THE STUDY• It is a hard fact that each study suffer from some limitations. So is the case with this study. One of the limitations of the study is, as the information is collected from the retailers, the monthly sales figure given by them is based entirely on their own judgment. So a few of them might have given the wrong figures related to their monthly sales. Another limitation was that some of the retailers were busy and could not give appropriate information. And also very few retailers did not want to share any information.• Another limitation of the study was the customers who were personally interviewed did not want to share the actual data as few of them were giving fake data• The sample size being very small , that is , only 150respondents, limited the scope of RESARCH 43
  44. 44. • Time constraints put boundaries to sample area and hence limited the extent of the study • Taking convenience sampling might have led to some bias as people with different age groups have different perceptions RESEARCH METHODOLOGYA research design is the arrangement of condition for collection and analysis ofdata in a manner that to, combine relevance to research purpose with economyin procedure.Research Design :- is conceptual structure within which research is conducted.It constitutes the blue print of collection, measurement and analysis of data.Research Design is needed because it facilitates the smooth sailing of variousresearch operations, thereby making research as efficient as possible yieldingmaximum information with minimum time, effort and money. Research Designstands for advance planning of methods to be used for collecting relevant dataand techniques to be used in the analysis .The design helps researcher toorganize his ideas whereby it will be possible for him to look for flaws andinadequacies.Method of data collection: - for collecting data and the accuracy of facts,complete enumeration was used. for collecting the data a sample of retailers &consumers were drawnData Analysis: - For the data analysis to know the market share of varioussoyabean brands computer programme called Microsoft Excel was used, withthe help of Microsoft Excel, I came to to know the quantity sold per month ofeach brands . On the basis of the quantity sold per month, I could collect themarket share of each brand.Sample size: - sample size was 50 of retailers & 100 of customers. 44
  45. 45. Sources of primary and secondary data:The major aim of the project was to analyze the competition in occupyingmarket shares of various soyabean oil brands. Therefore I had to getconsiderable information about the competing brands. For this I had to gothrough a lot of secondary data.A lot of issues of Business Today ,Economic Times were consulted. 45
  46. 46. Analysis of Retailer ResponsesQUES :- which brands of soyabean oil are available in the shop? Fortune 40 Nature fresh 25 Soyumn 32 Ginni 10 Dhara 20 VArious soyabean brands available dhara 16% fortune fortune ginni 31% nature fresh 8% soyumm soyumm nature ginni 25% fresh 20% dharaOut of 50 retailer respondents few retailers were only stuck to onesoyabean brand and maximum out of them were having or were dealing inalmost all the brandsQUES:- which soyabean oil has maximun sale per month? 46
  47. 47. Fortune 32 Nature fresh 5 Ginni 1 Dhara 1 Soyumm 14 soyabean oil with maximum sale soyumm fortune ginni 26% fortune 61% nature fresh 2% ginni nature dhara dhara fresh 2% soyumm 9% Out of the 50 retailers 61% were of the view that fortune is the market leaderQUES :- which soyabean oil has maximum sale in different quantity packs? I ltr 5ltr 15ltr 40 25 32 Soyaben Oil with maximum sale 15ltr 33% I ltr I ltr 41% 5ltr 15ltr 5ltr 26%As shown in the diagram 1ltr packing is the most saleable and it holds 41%share of the total.QUES :- Rank of the followings attributes in soyabean oil between 1-5 according to customer importance ( 5 being maximum) 47
  48. 48. GRADING 1 2 3 4 5Taste 3 16 23 3 5Quality 3 18 20 5 4Packaging 6 16 18 5 5Brand image 7 21 8 8 6Price 1 2 1 6 40Out of the various attributes shown above PRICE is one of the mostimportant factor that influences buying decisions of various customers .QUES :- what influences customers to buy the brand? Advertising 4 Attractive packaging 5 Retailer 4 Shop display 7 Pricing 28 Discount 30 Health conscious 40 Customers are influenced by advertising attractive health attractive packaging packaging conscious advertising 4% retailer 35% 3% retailer shop display 3% pricing discount shop 25% discount display pricing 6% health 24% consciousMost of the customers consume soyabean oil because either they aresuffering from any heart disease or are health conscious and the ratiocovered is 35%.QUES :- what are customers feedback regarding soyabean oil? 48
  49. 49. Customers are not satisfied with the discounts or the great offers theyare getting , sometimes they have to pay more than the MRP , theyconsume soyabean oil just they are going health conscious ,moreover they are receiving certain complaints regarding the tetrapacking because of leakage.QUES:- Are you satisfied with incentives from the oil company? Yes 38 No 12 SATSFIED WITH THE INCENTIVES no 24% yes no yes 76%Many of the retailers said that they are satisfied with the incentives they aregetting, 76%retailers are satisfied.QUES :- Are you satisfied with the services of the brand you are selling? Yes 30 No 20 49
  50. 50. SAISFIED WITH THE SELLING BRANDS no 40% yes yes no 60%60% of the retailers said that they are satisfied with the brands the areselling.QUES :- If no then what are the suggestions you will give to the company? Transportation 13 Scheme 16 Margin 19 Credit 2 Suggestions transport credit ation transportation 4% margin 26% scheme 38% margin scheme credit 32%32% of the retailers want ti give suggestions thart company should provideretailers some schemes which would help retailers to boost company sales.QUES :- Any suggestions to the company?They want that their margin should be increased each and everyrather than they go on a fixed margin ,even they want that certainperks or some schemes should be given to retailers also. 50
  51. 51. ANALYSIS OF Customer ResponsesQUES :- Do you use soyabean oil? Yes 62 No 38 CONSUMPTION OF SOYABEAN OIL no 38% yes yes no 62%Customers respondents agreed that they use soyabean oil and out of 100respondents 62%agreed.QUES :- If yes (check) the brand you use? Fortune 25 Nature fresh 12 Soyumm 15 Ginni 2 Dhara 8 Most used brands Dhara 13% Fortune Ginni 3% Fortune Nature fresh 41% Soyumn Soyumn Ginni 24% Dhara Nature fresh 19% In consumption as well as preferable brands FORTUNE leads with 41%QUES :- Rank the following attributes according to their importance to you? (5 being maximum) 51
  52. 52. GRADING 1 2 3 4 5Taste 6 19 25 5 7Quality 5 17 27 6 7Packaging 9 19 23 6 5Brand image 7 21 4 13 7Price 2 4 7 9 40Out of the various attributes shown above PRICE is one of the mostimportant factor that influences buying decisions of various customers.QUES :- What influenced you to buy the above stated brand(s)? Advertisment 3 Attractive Packaging 4 Retailer 12 Shop display 5 Pricing 21 Health conscious 17 DECISION ARE INFLUENCED BY Advertisment 5% 6% Attractive 27% Packaging 19% Retailer Shop display 8% 35% Pricing Health consciousPRICING is again the leading factor followed by the customers whoconsume just because they are health conscious. 52
  53. 53. QUES :- If particular brand is not available with retailer the you will. . . . .? drop the idea of buying it 2 go to another retail outlet 37 2 try another brand 3 If Particular brand not avaliable 3% drop the idea of buying it 37% 0% go to another retail outlet 60% try another brandAs per the collected data it is clear that customers want to stick to theirparticular brand rather than trying out some different brand.QUES :- What according to you a suitable price for 1 ltr which is of good quality? below Rs 30 6 between 30 and 40 9 between 40 and 50 39 more than 50 8 53
  54. 54. PRICE FOR 1LTR below rs 30 13% 10% between 30 15% and 40 between 40 and 50 62% more than 50AS clear from the above diagram it is clearly indicated that customers wantprice of 1ltr between the range of 40 – 50 so that it is easily affordable forthem easily.QUES :- If your brand is few Rs expensive than it, then will you go for it? Yes 39 No 23 WILL YOU BUY IF YOUR BRAND IS EXPENSIVE no 37% yes yes no 63%Customers are ready to pay even high price because they are satisfied withwhat they buy.QUES :- A sale promotion scheme like rs 10 off , 250 gms extra 54
  55. 55. or a product free, whould it affect you purchase decision? YES 47 NO 15 SALES PROMOTION EFFECTS BUYING DECISIONS no 24% yes yes 76% noAlmost 75% customers agrred that sales promotion schemes do effect thebuying decisions.QUES :- what size of packaging do you normally buy? 1ltr 37 5ltr 12 15ltr 13 PACKAGING MOSTLY SOLD 15ltr 21% 1ltr 5ltr 5ltr 1ltr 19% 60% 15ltr 1LTR packaging is mostly sold in the market.QUES :- Are you happy with the kind of soyabean oil brands available in india, today? 55
  56. 56. YES 37 NO 25 SATISFIED WITH THE BRANDS SOLD IN INDIA no 40% yes yes no 60%Majority of the customers are satisfied with the brands that are available inIndia.QUES :- If no then why not?All the customers have given their suggestions as well as complaints whichare shown later. 56
  57. 57. SUGGESTIONS OF THE RETAILERS & CUSTOMERS 1) Leakage problem should be looked after and the replacement of the leaked packets should be given to them. 2) The company should reduce the cost of their products and the margin of the retailers should be increased. 3) There should be proper channel of information, whenever any scheme is introduced by the company for the retailers, they should be properly informed about the scheme. 4) In the same way, whenever any scheme is introduced for the consumer there should be atleast a print advertisement if T.V. advertisement is not possible. 5) Other incentives should also be given to the retailers like glow sign boards etc.CON CL USI ON S & RE CO MME ND ATIO NS 1) Leakage problem should be taken care of and the retailers should fully compensated for their loss due to leakage. 2) There should be proper feedback for the retailers AS WELL AS customers whenever any scheme is introduced for the retailers & customers they should be made aware of it. Sales representatives should be given guidelines to intimate each and every retailer of his area about the schemes. 57
  58. 58. 3) Being all the companies are ISO 9001 company, it is not good for the reputation company that it is getting complaints about the products related to quality. More emphasis should be laid on the quality to avert such circumstances. 4) Regarding the introduction of new products, the company should go for aggressive marketing. There is a lot of potential in Soya Refined oil segment, but retailers are not even aware of our product. 5) Whenever any consumer oriented scheme is introduced, the scheme should be directly targeted to that person who actually uses i.e., house wives. 6) Non monetary incentives should be also given to the retailers in each and every city. They should be given glow sign boards and other sales promotional materials. This will boost up their spirits. MRP problem during the days of rising prices should be taken care. In this situation if retailers are getting the products on a price higher than the MRP they can’t sell it more than the MRP. So this problem should be looked after carefully.BibliographyKotler Phillip, Marketing Management, Millennium edition. (Prentice hall ofIndia).Business todayGREEN AND TULL , Marketing ResearchWEBSITES 58
  59. 59. www. Google.co.inwww.adani.comwww.amri banaspati.comwww. Soyumm.comwww.cargill.comwww.dharaproducts.comwww. Naturefresh.com 59