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Transcript of Cargill Vinod
PROJECT REPORT
ON
Market research for premier oil category of sunflower oil with detailed analysis and
data mining of key competitor brands for positioning of new brand from Cargill
Submitted in partial fulfilment of PGDM program2011-13
Submitted by:Saurabh Jindal
FC11168
Corporate Mentor Faculty Mentor
Amit Raju Deepika Saxena
Regional sales manager
Cargill India pvt.ltd
CERTIFICATE
This is to certify that the project work done on “Market research for premier oil category
of sunflower oil with detailed analysis and data mining of key competitor brands for
positioning of new brand from Cargill”. Submitted to Apeejay School of Management,
Dwarka by Vinod Kumar Mal in partial fulfilment of the requirement for the award of PG
Diploma in Business Management is a bonafide work carried out by him/her under my
supervision and guidance. This work has not been submitted anywhere else for any other
degree/diploma. The original work was carried out during 23rd April 2012 to 22nd June 2012
in Cargill India Pvt. Ltd.
Date: Divya Jindal
Seal/Stamp of the Organization Coordinator
Apeejay School Of Management
New Delhi
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough
t o ge t suppo r t f r om l a rge number o f pe r sons t o whom I sha l l always
remain grateful. Wi th immense p l ea su re I wou ld l i ke t o exp re s s ou r s i nce re
t hanks and gratitude to Mr. Dinesh Tendon (Zonal Sales Manager) and Mr. Amit
Raju (Regional Sales Manager) for having given us this privilege of working under them and
completing the study and the valuable time, advice and the support that they offered.
We are desirous of placing on record profound indebtedness to dean sir Deepankar
Chakraborti and my mentor Divya Jindal whose help, stimulating suggestions and
encouragement helped me in all time of research.
We would be failing in duty if we do not acknowledge the gratitude to all the employees of
Cargill India Pvt. Ltd. who motivated us a lot in carrying out this project and whose
kind supervision, keen interest and valuable suggestions helped in the successful
completion of this work.
Last but not the least; I cannot forget the help and co-operation I received from my family
members without whom this project would not have been a grand success.
TABLE OF CONTENTS
Executive Summary
Chapter1. Introduction to the topic
Chapter2. Introduction to the oil industry
Chapter3. Company profile
Chapter4. About the project
Chapter5. Literature review
Chapter6. Research methodology
Chapter7. Data analysis and findings
Chapter8. Title, objective, scope and significance
Chapter9. Conclusions
Chapter10. Recommendation
Chapter11. Bibliography
Chapter12. Annexure
EXECUTIVE SUMMARY
This Study gives you an overview of the various aspects of SWEEKAR REFINED
SUNFLOWER OIL .With emphasis on customers, competitors, dealers and Retailers. The
study also throws some light on the overview of Cargill Foods in India, as well as in the
Global Scenario.
Founded in 1865, Cargill is one of the largest international providers of food, agriculture and
risk management products. With more than $120 billion turnover and operations spread
across 67 countries, Cargill today employs more than 1, 67,000 people across the world and
is trusted across for its commitment of Cargillishing people.
In India, Cargill has an access over 1200 towns and 2, 50,000 retail outlets. Since its
inception in 1987, Cargill has been a part of Cargill lives with the most innovative and best
quality products.
Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils
and fats to wholesale trade, industrial and household consumers across India. We own and
operate Cargill vegetable oil refining facilities – three are located on east and west coast ports
of India, the other is located in western India. Refined Oils India markets a range of refined
sunflower, soya, palm and ground nut oils, hydrogenated fats and bakery shortenings under
Cargill national brands, Nature Fresh, Gemini, Sweekar, Rath and other region-specific
brands.
The Project given was related to the launch of SWEEKAR REFINED SUNFLOWER
OIL. The main objective was to find out the feasible Retail Outlets to place the product
being launched and Analysis and data mining of key competitor brands in Sunflower oil
category.
CHAPTER 1
INTRODUCTION TO THE TOPIC
Despite rising prices of premium edible oils, consumption demand in India has been growing
with a blistering pace to keep up with. Per capita consumption of premium edible oils in the
country has shot up from around 3 kg in 1950 to 14.2 kg in 2011.such a high rise in demand
for premium oil made the company think of launching of their new product SWEEKAR.
The project comprised of three stages;
Planning
Implementation
Verification
Planning: This was the first phase of our launch process wherein we were supposed to find
out how much approximately the customer prefer Saffola, Sundrop and other premium
category oil so that the launch of SWEEKAR becomes much easier.
Implementation: This was the second phase of the launch phase where we were supposed to
launch the new product SWEEKAR on listed wholesale and retail outlets all over Delhi and
NCR. I worked in East Delhi area along with the area sales manager, sales officers and
distributer sales person of that particular area.
Verification: With the successful completion of planning and implementation stages comes
the verification stage. During this stage we tried to find out the following:
Whether the new product was properly placed with the retailers and wholesalers?
Whether the retailers were able to sell the product?
Whether the consumers themselves were asking for the product or whether it was
retailers who were making them aware of the product?
CHAPTER 2
INDIAN EDIBLE OIL INDUSTRY
Ind i a i s t he l a rge s t impor t e r o f ed ib l e o i l and t he t h i rd l a rge s t
consumer ( a f t e r China and Europe). Of the total 5.0-5.5 million tons of vegetable oils
importedI n d i a a n n u a l l y , 1 . 3 1 . 5 m i l l i o n t o n s i s s o y a b e a n o i l ,
i m p o r t e d m o s t l y f r o m Argentina, Brazil and United States, nearly 3 million tons of
palm oil is purchased f rom Ma lays i a and Indones i a . Pa lm o i l impor t ed i n to
Ind i a i s u sed i n va r i ous forms- consumed directly as “palm oil” after refining used
in
vanaspa t i , f o rb l end ing w i th o the r vege t ab l e o i l s , r aw o i l and ke rne l o i l s
f o r i ndus t r i a l pu rpose s . Pe r Cap i t a consumpt ion i s a round 10 kg/year.
Pa lm and Soya bean oil account for half of the total edible oil consumption in India
followed by Mustard and Groundnut Oil. The sha re o f r aw o i l , r e f i ned o i l and
vanaspa t i i n t he t o t a l ed ib l e o i l ma rke t i s estimated as 42%, 48% and 10%
respectively (Department of Food and Public Distribution, GOI). India has close to 9% of
global oil seeds production, making it the largest producers of oilseeds in the world. Over
50% of the total volume of the edible oil sold in India being imported in 2010.
MARKET SHARE OF EDIBLE OILS IN INDIA
OIL PERCENTAGE
Palm oil 38
Peanut 14
Sunflower 8
Soya bean oil 21
Rapeseed 13
Cotton 6
List of Edible Oil players in India
Fortune Adaani Wilmar LimitedSweekar Cargill India Pvt. Ltd., USANature freshGeminiDalda Bunge India Pvt. Ltd, USASaffola Merico Ltd, IndiaParachuteSundrop Agro Tech Foods Ltd (Conagra Foods)R R Primo RR Omerbhoy Pvt. Ltd. Dhara Dhara Co. Ltd NDDB Campus, AnandPanghat Mawana Sugars Ltd.Tilsona Recon Oil Industries Private Ltd.Figaro Consumer Marketing (India) Private Ltd.Shalimar’s Shalimar Agro Tech Pvt.ClassicBasmatiPalm Sarda Agro Oil Ltd.Gold Active Ruchi Infrastructure Ltd.Ruchi Gold
In edible oil The Adani-Wilmer owned Fortune brand is India’s number in edible
oil according to A C Neilson Retail Audit . Fortune, which is present as a refined soya
bean oil, sunflower oil, groundnut oil and mustard oil is said to have a market share
of around 50 % in the entire edible oil market. Mar i co Indus t r i e s have a ma rke t
sha r e o f 13 % wi th b r ands l i ke Sa f fo l a , e t c
Consumption Pattern of Edible Oils in India
I n d i a i s a v a s t c o u n t r y a n d i n h a b i t a n t s o f s e v e r a l o f i t s r e g i o n s
h a v e developed specific preference for certain oils largely depending upon the
o i l s ava i l ab l e i n t he r eg ion . Fo r example , peop l e i n t he Sou th and
Wes t p r e f e r g r o u n d n u t o i l w h i l e t h o s e i n t h e E a s t a n d
N o r t h u s e m u s t a r d seed/rapeseed oil. Likewise several pockets in the
South have a preference for coconut and Sesame oil.
Inhabitants of northern plain are basically hard fat consumers and therefore prefer
Vanaspati, a term used to denote a partially hydrogenated edible oil m ix tu r e .
Vanaspa t i ha s an impor t an t r o l e i n ou r ed ib l e o i l e conomy . I t s production
is about one million MT annually. It has around 13% share of the edible oil market. It has the
ability to absorb a heterogeneous variety of which do not generally find direct marketing
opportunities because of consumer preferences for traditional oil such as groundnut oil ,
mustard oil, sesame oil etc. For example, newer oils like Soya bean, sunflower, rice bran
cottonseed and oils from tree and forest sources have found their way to the edible pool
largely through vanaspati route. Of late, things have changed through technological.
A l l o i l s have been r ende red p r ac t i c a l l y c o l o r l e s s , o d o r l e s s a n d
t a s t e l e s s a n d , t h e r e f o r e , h a v e b e c o m e e a s i l y interchangeable in the
kitchen. Newer oils which were not known before have entered the kitchen, like those
of cottonseed, sunflower, palm oil or its liquid fraction, Soya bean and rice bran. All
of them are again e s sen t i a l l y b l and , p roce s sed ed ib l e o i l s . Abou t 60 -
70% p redominan t l y groundnut and mustard seeds are used to make non-refined
or filtered oils. These tend to have a strong and distinctive test preferred by most
traditional customers.
About 70% of these filtered oils produced are by the organized and semi-
organized sector plants producing from 2000-10000 MT per month. It is often
branded by large manufacturers.
Lowerc o s t f i l t e r e d o i l p r o d u c e d i s m a i n l y b y t h e s m a l l s c a l e
v i l l a g e s b a s e d processors. The oil is mostly sold loose directly to the
consumers from a va r i e t y o f con t a ine r s , o f t en w i th in 2 -
3 days o f p roduc t i on .
These l oca l c ru she r s w i l l p roduce be tween ha l f and two MTs pe r
mon th . T h i s decentralized production and marketing pattern may account for around
20% o f a l l e d i b l e o i l s i n t h e c o u n t r y . T h e s h a r e o f r a w o i l ,
r e f i n e d o i l a n d vanaspati in the total edible oil market is respectively 42.0%,
42.7% and13.4%
(In Lakh Tonnes)
Oil Year(Oct-Nov)
Production of oil seeds
Net availability of edible oil from all sources
Consumption of edible oils(from domestic and import sources
2000-20001 184.40 54.99 96.76
20001-2002 206.63 61.46 104.68
2002-2003 148.39 46.46 90.29
2003-2004 251.86 71.40 124.30
2004-2005 243.54 72.46 117.89
2005-2006 279.79 83.16 126.04
2006-2007 242.89 73.70 115.87
2007-2008 297.55 86.54 142.62
2008-2009 305.24 81.24 157.43
2009-2010 310.32 79.74 165.92
2010-2011 318.76 80.65 171.23
Source:
(i) Production of oilseeds: Ministry of agriculture
( i i ) Ne t ava i l ab i l i t y and consumpt ion o f ed i b l e o i l s : D i r ec t o r a t e o f
Vanaspati, Vegetable Oils.
Future of Indian Edible oil Industry
Demand drivers
Macroeconomic factors : Population
growth, per capita
income, purchasing power, oilseeds crop
Other factors : Prices
- domestic/ international Availability, etc
Influence of branded products - `health’
message.
Key Success Factors
Growing preference for convenience
foods.
Raw material sourcing : focus on
improving yields, getting better quality
oilseeds , ensuring regular supplies -
through symbiotic relationship with
farmer
Branding essential for success (e.g.
Vanaspati – Dalda, Oils - Sun drop)
Better distribution network to improve
reach.
Efficiency in operation - to become price
competent and withstand overseas
competition.
Proposed Future trading in edible
oils will help curtail price volatility and
lend knowledge - based assistance to
farmers of eliminate unofficial markets
Future In the next five years, the market for
Edible oils will grow by 8 to 9% to 14.65
million MT
Business Concerns
Free imports, low import duties and
slump in global prices - lead
to `dumping’
Domestic industries of
edible oils affected – low realization and
idle capacities in oil industries
Production slippages have also forced
imports
Excessive (cheap) imports of oilseeds -
led to remunerative prices, locally
Hence, farmers have shifted to other
cash crops
Salient Features of edible oil industry
o The Indian edible oil industry is highly fragmented.
o The share of branded oils segment has remained low over the years.
Cut down import duties on edible oil since April 2008
In past, the edible oil industry has witnessed organic and inorganic expansion.
CHAPTER 3
COMPANY PROFILE
Exploring the roots of Cargill from 1865-present
Cargill has a long, rich heritage, starting with W. W. Cargill's first grain storage
facility on the American frontier in 1865. The company has grown to become one of
the largest, privately-owned businesses, providing food, agricultural, risk
management, financial, and industrial products and services around the globe.
A Summary of Cargill's History
1865
William Wallace Cargill leaves the family home in Janesville, Wisconsin and becomes the
proprietor of a grain flat house in Conover, Iowa. The flat house, a type of warehouse that
preceded country elevators, was at the end of the McGregor & Western Railroad line.
1867
W. W. Cargill and his younger brother, Sam, form a partnership: W. W. Cargill and Brother.
W. W. moves to Lime Springs, Iowa, where the business constructs a grain flat house and
opens a lumberyard.
1868
W. W. Cargill marries Ellen Stowell in Ossian, Iowa, and moves to Austin, Minnesota,
where he builds his first Minnesota flat house. W. W. Acquires storehouses to take advantage
of the great post-war agricultural and railroad expansion throughout the plains.
1870
W. W. Cargill's business is headquartered in Albert Lea, Minnesota to take advantage of
the expansion of the Southern Minnesota Railroad. About this time W.W.'s brother, Sylvester
S. Cargill, becomes independent, eventually establishing the Victoria Elevator Company in
Minneapolis.
1884
John H. MacMillan, 15 years old, goes to work in his father's bank in La Crosse, Wisconsin.
W. W. Cargill & Bro. in La Crosse is formally separated from Minnesota and the Dakotas by
the establishment of Cargill Brothers in
Minneapolis.
1885
The three Cargill brothers own or control 102 structures in Minnesota and the Dakotas (and
smaller holdings in Iowa and Wisconsin) with a total grain capacity of over 1.6 million
bushels. By this time, Minneapolis and Duluth are identified as prominent grain centers.
1887
W. W. Cargill forms the Sault Ste. Marie Land Company to take advantage of the growth
expected after the Soo Line railroad connected the lock area with Minneapolis. Sam Cargill
leaves La Crosse to manage the Minneapolis, Minnesota office.
1890
The Minneapolis operation, under the direction of Sam Cargill, drops the "Cargill Bros."
name and incorporates under Cargill Elevator Co.
1891
Three MacMillan brothers, John H., William D., and Daniel D. move to Fort Worth, Texas,
to set up a grain business under the name D. D. McMillan & Sons.
1892
W. W. Cargill & Bro. incorporates as W. W. Cargill Company of La Crosse, Wisconsin. Sam
Cargill opens an office in Duluth, Minnesota, and the Cargill Commission Company is
formed to trade grain in Duluth.
1903
Sam D. Cargill dies, creating a void in leadership. John H. Macmillan, Sr., moves to
Minneapolis from Arkansas to become general manager. W. W. Cargill becomes the sole
owner of the La Crosse business after Sam's death.
1908
William S. Cargill is in Montana organizing a development effort that ultimately will involve
ranching, land development, the development of the Montana Western Railway, a dam, and
the creation of the town of Valier. The project is not profitable and begins to stress the
finances of the La Crosse grain business
1911
A portion of the assets of Sawyer and Austin Lumber Company is sold to raise funds. The
mineral rights to the Arkansas land are retained, and eventually leased to American Bauxite
Company, generating much needed cash through 1922.
1922
Julius Hendel joins the Cargill organization and takes charge of the newly established grain
laboratory in Minneapolis. The grain lab will become one of the most respected private
laboratories in the country. Hendel's laboratory study on flour appears the following year in
the North-western Miller.
1926
A fire in British Columbia destroys the logging camp. Austen Cargill returns to Minneapolis
and becomes head of the Cargill Commission Department, focusing his attention on the
management of the company's country elevators.
1927
Cargill leases the 1.5 million bushel Superior elevator in Buffalo, New York and another
elevator at Port McNicoll, Ontario, beginning its reach eastward. John MacMillan, Jr.,
marries Marion Dickson.
1999
The University of Minnesota receives $10 million from Cargill to expand the
University’s work in the emerging field of microbial and plant genomics.
Cargill launches Strategic Intent, which involves positioning the company so that “by the
year 2010, Cargill will be the recognized global leader in providing agrifood chain customers
with solutions that enable them to succeed in their businesses.”
2000
Cargill Dow Polymers LLC announces plans to build a world-scale facility in
Blair, Neb., that will use corn-derived dextrose to make polylactide (PLA)
polymers for fibres, plastic packaging and other products. President Clinton
presented the 1999 Malcolm Baldrige National Quality Award to Cargill's Sunny Fresh
Foods. Gregory Page becomes president. Warren Staley is elected chief executive officer and
chair of the board of directors. McDonald’s honors Sun Valley Thailand with its Sweeney
Quality Award, first Asian recipient of the award. The hybrid seed business in North
America is acquired by Mycogen Seeds.
2003
Cargill’s earnings surpass US $1 billion for the first time in its history. Cargill adds to its
chocolate portfolio with the acquisition of Peter’s Chocolate, a brand dating from the 1880s,
and OCG Cacao, a European maker of industrial chocolate. Cargill’s global giving exceeds
US $22 million.
2004
Cargill Fertilizer and IMC Global combine to form a publicly traded firm, The Mosaic
Company. Cargill acquires The Duckworth Group, a UK-based flavour house. Cargill
Animal Nutrition has a presence of 163 plants in 22 countries. Cargill announces an
agreement to acquire Seara Alimentos, a major Brazilian poultry and pork producer.
2005
Cargill India and Parakh Foods enter into a joint agreement to produce and market vegetable
oil. Black River Asset management, a global asset managementcompany, is launched. Ocean
Transportation Unit ranked No. 1 in dry bulk freight by Risk magazine (February 2005).
Cargill purchases Romanian edible oil producer Olpo, expanding its investment in the Black
Sea region. Cargill opens first office in Dubai, United Arab Emirates.
Despite its size, the corporation is still a family owned business; descendants of the founder
(from the Cargill and MacMillan families) own about 85% of the company. This means that
most of its growth has been due to reinvestment of the company's own earnings, rather than
public financing. Greg Page is the chief executive officer of Cargill; he succeeded Warren
Staley in mid 2007. Cargill's quarterly profits crossed $1 billion for the first time during the
quarter ending on February 29, 2008 ($1.03 billion); the 86% rise was credited to global food
shortages and the expanding biofuels industry that in turn caused a rise in demand for
Cargill's core areas of agricultural commodities and technology. It is an INVISIBLE
GIANT which is grooming day by day.
Cargill acquires Parakh Foods with brand "Gemini" and sets up a new Business Unit called
Cargill Refined Oils India. This is first business unit with headquarters in India. Cargill
launches Saanjhi Unnati Program in Rajasthan for development of malt barley in active
collaboration with the Government of Rajasthan and SAB Miller.
2006: Cargill starts its sugar off shoring business to support the execution activities of Cargill
Netherlands.
Cargill sets up CarVal India Pvt. Ltd.
Cargill enters into a joint venture in a project for setting up a
Green field sugar refinery in South India.
Cargill entered into tolling arrangements with local Soybean
Crushers in Maharashtra, Rajasthan and Madhya Pradesh Cargill enter into a joint
venture.
And subsequently owns and leads a shrimp feed manufacturing business in Rajahmundry
In Andhra Pradesh.
2007:
Cargill launches cotton trading business in India.
2008:
An independently managed subsidiary of Cargill, Black River Advisor India Pvt. Ltd., begins operations in India.
CARGILL PRESENCE
ASIA AFRICA MIDDLE EAST
Australia South Africa Poland
China Zimbabwe Portugal
India Ghana Romania
Indonesia Malawi Russian Federation
Japan Kenya Spain
Malaysia Tanzania Switzerland
Pakistan Morocco Sweden
South korea Nigeria Australia
Philippines Cote d’lvoire Belgium
Singapore Denmark
Finland
France
Germany
Greece
Hungaria
CENTRAL AMERICA SOUTH AMERICA
Bonaire ArgentinaCosta Rica BoliviaDominican Republic BrazilGuatemala ChileHonduras ColumbiaNicaragua Paraguay
Peru
CARGILL IN INDIA
Cargill’s operations in India started in 1987 completing 25 successful years in India. They
employ more than 2,000 employees working in offices and plants across the country and
have a network of warehouses and depots. Cargill has an access over 1200 towns and 2,
50,000 retail outlets. Since its inception in India, it has been a part of Cargill lives with the
most innovative and best quality products.
Cargill maintains a number of businesses in India with operations including handling and
processing a wide range of products including refined oils, grain and oil seeds, sugar, cotton
and animal feeds. In addition, Cargill develops flavor systems and operates a value investing
business. our presence in India has been growing since we began a joint venture operation in
1987 and today it has an access over 1000 towns and 2,50,000 retail outlets. Its head office is
located at cyber city phase 3 Guagoan ( Haryana).
Locations
Cargill India Pvt. Ltd.14th Floor, Building 9 A,
Headquarters
Capital or Major City
GOSC Offices
Oil Refinery
Regional Office
Animal Nutrition
Oil/Food Depot
Sugar Refinery
DLF Cyber City, Phase III,Gurgaon-122002 (Haryana)
Tel: +91 124 2358939, 409 0489Fax: +91 124 2358977
DISRTRIBUTION CHANNEL OF CARGILL INDIA PRIVATE LTD.
MANUFACTURER
(C AND F) DEPOT
SUPER STOKIST DISTRIBUTER
WHOLESALE
RETAILER
CUSTOMER
T h e e n d u s e r s o f t h e p r o d u c t s a r e : h o u s e h o l d s a n d
i n s t i t u t i o n a l b u y e r s [catering/hospitality/processed food/snacks] set-ups.
Cargill has set up a strong distribution network of Company Distributors and
super
stockiest. Th i s cha in he lp s t o t ap even t he sma l l r e t a i l e r s / t r ade r s and
t hus increases their reach.
.
HIERARCHY STRUCTURE OF CARGILL INDIA PVT LTD.
Chairman
Director
National sales manager
Regional business manager
Zonal sales manager
Area sales manager
Senior sales officer
Sales officer
Trainee sales officer
Interim sales representative
Distributer salesman
Vision
“Our vision is to be the leading player in Indian edible oils market and creating a distinctive
value for all stakeholders”.
Mission
“ We will develop and deliver value added products, which exceed statutoryrequirements
to satisfy our internal and external customers, by creating a cultureof continuous
improvement and will establish dominant position in ours chosenmarket, by achieving
competitive advantage in all functions and building and retaining a high performing
customer-focused team.”
Approach
“Our approach is to be trustworthy, creative and enterprising ”.
Measures
“Our measures are engaged employees, satisfied customers, enriched communities and
profitable growth”.
Why choose Cargill?
People choose to work at Cargill for many reasons. Some say it is the respect they feel from
their supervisors. Some value the opportunity to make a difference through Cargill’s
community-involvement projects. Some just like that every day they can be themselves
and be rewarded for it. We help customers succeed through collaboration and innovation, and
are committed to sharing our global knowledge and experience to help meet economic,
environmental and social challenges.
Cargill’s guiding principles
It is not practical to set out detailed guidelines to govern every situation that might
arise in the conduct of our varied and complex global business. Instead, below are the
seven basic Guiding Principles that form the framework in which to examine
any problem arising in any country.
Cargill will comply with the laws of all countries to which it is subject.
Cargill will not knowingly assist any third party to violate any law of any country, by
creating false documents or by any other means.
Cargill will not pay or receive bribes or participate in any other unethical, fraudulent,
or corrupt practice.
Cargill will always honor all business obligations that it undertakes with absolute
integrity.
Cargill will keep its business records in a manner that accurately reflects the true
nature of its business transactions.
Cargill managers and supervisors will be responsible that employees, consultants and
contract workers under their supervision are familiar with applicable laws and
company policies and comply with them. Further, they will be responsible
for preventing, detecting, and reporting any violations of law of Cargill policies.
Cargill employees will not become involved in situations that create a conflict
of interest between the company and the employee.
Every year, all Cargill employees sign an agreement to live these principles
Cargill milestones in India
1987
Cargill Seeds - a joint venture operation - commenced in India.
1994
Cargill starts its fertilizer/crop nutrients operations in India.
1997
Cargill launches its primary sugar and edible oils trading business in India.
1998
Commences grain and oil seeds business in India.
2001
Launches food business under Cargill Foods – launch of brand “Nature Fresh”.
2003
Cargill acquires the Food Flavours business from Duckworth
Group UK, and Duckworth Flavours India becomes part of Cargill
India.
Cargill sets up green field edible oil refineries at Kandla and Paradip.
Cargill launches one stop agro-shops – Saathi Krishi Samadhaan
Kendras.
2004
Cargill diversifies its fertilizer business into a joint venture with IMC
global.
Cargill India's DAP business renamed as Mosaic India.
2005
Cargill acquires Parakh Foods with brand "Gemini" and sets up a
new Business Unit called Cargill Refined Oils India. This is first
business unit with headquarters in India.
Cargill launches Saanjhi Unnati Program in Rajasthan for development
of malt barley in active collaboration with the Government of
Rajasthan and SABMiller.
2006
Cargill starts its sugar off shoring business to support the execution
activities of Cargill Netherlands.
Cargill sets up CarVal India Pvt. Ltd.
Cargill enters into a joint venture in a project for setting up a green
field sugar
Cargill entered into tolling arrangements with local Soybean crushers.
2007
Cargill launches cotton trading business in India.
2008
An independently managed subsidiary of Cargill, Black River Advisor India Pvt.
Ltd., begins operations in India
2011
Recently the company acquired “SWEEKAR” from Marico to launch it again.
In India, where vitamin deficiency is major health concern, Cargill reaches 25
million people per month with cooking oil fortified with essential vitamins.
PRODUCTS AND SERVICES
CARGILL FOOD INDIA
Cargill Foods India processes, refines and markets a wide range of indigenous and
imported edible vegetable oils, fats and blends for the food industry. We serve
household consumers with packaged, branded and vitamin-fortified edible oils
and vanaspati (hydrogenated fats). We also offer high quality food ingredients from
our global portfolio and deliver a broad array of ingredient solutions to cater to the
growing needs of the food manufacturers and food service industry in India.
GRAIN AND OIL SEEDS
Cargill India is one of the largest originators and marketers of food and coarse grains in
India. We handle wheat, corn, rice, pulses, millets, barley and sorghum as well as oilseeds
including soybean, rapeseed, groundnut and vegetable oils and meals. We source grains and
oilseeds from the domestic market as well as import and export them..
SUGAR
Cargill India originates, stores and supplies raw and plantation white sugar and participates in
export and import depending on the surplus or deficit situation in India. We have suppliers in
the sugar-producing states of Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka and
Andhra Pradesh and serve a wide range of customers.
COTTON
India is the world's second largest producer of cotton and cotton textiles. Cargill Cotton, one
of the world’s largest and oldest cotton businesses, is respected for its experience, expertise,
reliability and commitment to customers. Cargill’s cotton business can be traced back to
1851 when Ralli Brothers was incorporated in Kolkata (formerly Calcutta) and Mumbai
(formerly Bombay). Ralli Brothers was bought over by Cargill in 1981 and in 2002, the name
of the cotton business was changed to Cargill Cotton.
ANIMAL NUTRITION
Cargill is one of the leading suppliers of animal nutrition products worldwide. With our
global expertise in supply chain and risk management, we are able to offer distinctive value
to meet our customers’ needs through high quality feed production and efficient distribution.
Our market-leading brands and on-trend products support the care, growth, and efficiency of
various livestock, aqua and leisure animals.
RISK MANAGEMENT AND FINANCIAL SOLUTION
Cargill’s Trade and Structured Finance expertise in financial markets helps our businesses
manage risks around letters of credit, other cross-border credit and financial risks associated
with trade and commodity finance. We complement the efforts of our businesses by
providing treasury, financial and balance sheet solutions for their customers, suppliers and
service providers.
ENERGY, TRANSPORTATION AND METALS
ETM transparently manages global commodity supply chains for its customers. It offers a
unique combination of expertise to develop physical and financial solutions in the natural
gas, power, coal, petroleum, petrochemicals, ferrous base metals and ocean freight markets.
Cargill Refined Oils
C a r g i l l R e f i n e d O i l s I n d i a i m p o r t s , r e f i n e s , s e l l s a n d
m a r k e t s a w i d e r a n g e o f v e g e t a b l e o i l s a n d f a t s t o
w h o l e s a l e t r a d e , i n d u s t r i a l a n d h o u s e h o l d c o n s u m e r s
a c r o s s I n d i a . W e o w n a n d o p e r a t e t h r e e v e g e t a b l e o i l refineries
located at Paradeep (Orissa), Kandla (Gujarat) and Kurkumbh (Maharastra).
Cargill Refined Oils India has been operating within India since 2005 and employs more
than 750 people.
Major Refining Capabilities
Our refineries are unique in technology and adhere to stringent specifications for
maintenance of product quality, oil stability and food safety. The qualities found within
our operations are unparalleled in India:
Best and latest refining technology, this has been tested and improved across various refinery set-ups within the global Cargill network.
A t e a m t r a i n e d b y i n t e r n a t i o n a l e x p e r t s a n d o n
i n t e r n a t i o n a l p l a t f o r m s r u n t h e s e r e f i n i n g
capab i l i t i e s and i s f u l l y equ ipped t o p roduce t he best product in
the country.
Standa rds o f qua l i t y have been s e t keep ing t he i n t e rna t i ona l and
Ind i an requirements in mind. These standards incorporate the best of both
worlds and meet the highest levels of quality.
Specifications that not just ensure superior quality but also high stability
without addition of preservative chemicals. No oil that does not meet these
specifications is ever packed or shipped.
Hands free treatment with no direct human touch on the product itself due to
f u l l y a u t o m a t e d r e f i n i n g t e c h n o l o g y . T h i s h a s l e d t o a
v e r y c l e a n a n d hygienic environment and a better and safer product.
CARGILL REFINED OIL BRANDS
1. SWEEKAR SUNFLOWER OIL
Sweekar containing High Oleic Sunflower oil, also referred to as HOSUN. The new
Sweekar is a unique blend of 20 percent HOSUN and 80 percent sunflower oil. HOSUN is
produced from sunflower seeds that contain more than three times the amount of MUFA
(Mono Unsaturated Fatty Acids) as compared to regular sunflower oil. HOSUN also
contains higher MUFA than olive oil. MUFA is good fat and is a healthy alternative to
saturated fats: it improves blood lipid profile and so diets with healthy amounts of MUFA
have a host of amazing health benefits. Besides, HOSUN has a very neutral taste and
provides excellent stability. Sweekar is the only sunflower oil brand in India that is
blended with high oleic sunflower oil. It has one of the lowest levels of saturated fats and
this helps in managing cholesterol levels. Sweekar is one of the leading premium
sunflower oil brands in Maharashtra, Rajasthan, Delhi, Orissa, Chhattisgarh and Madhya
Pradesh and is available in pack sizes of 1 liter pouch, 5 liter jar and 15 liter jar.
SWEEKAR
Parent Company Cargill
Category Cooking Oil
Sector Food Products
Tagline/ Slogan Aapke haath mumkin har baat
USP Low cholesterol edible oil
STP
Segment Health conscious adults
Target Group All age groups, middle and high income, health conscious people
Positioning Healthy cooking oil
SWOT Analysis
Strength
1.Dominant player of edible oil
2.Uses health platform
Weakness
1. Limited market penetration in edible oil market.
2.Rural area
3.Limited market penetration in food processing industry
4.Price of product is slightly high that affect the demand
5.Low advertising and visibility
Opportunity
1.Sharp increases in demand of branded oil
2.High market awareness in metropolitan city of branded oil
3.Health conscious people increasing
Threats
1.The treats of low price competition
2.A large number of domestic as well as multinational players
3.Highly competitive industry
Competition
Competitors 1.Sundrop
2.Dhara
3.Nature Fresh
4.Saffola
5.Sampriti
2. Nature Fresh Acti-Lite
Nature fresh acti lite refined oils always ensure that you stay light and active. Now its
verified! With added DMPS ( a permitted antioxidant as ingredient). Labotary results have
shown that food cooked in Nature fresh acti lite refined oils absorbs less oil as compared to
food cooked in ordinary oils. So now indulge in your favorite foods with guilt, knowing that
you have the trusted quality of Cargill. nature fresh is available in refined soya bean and
refined sunflower oil. Nature Fresh Acti-Lite Refined Oils are made using lightness
Integrated Technique (LITE), which ensures that consumer, gets the lightest oil that is easy to
digest. The oil is refined in the technologically advanced processing plants to ensure that the
best attributes of the oil are preserved for your health. Nature Fresh Acti-Lite Refined Oils
now comes with fortified with the goodness of Vitamin A, D and E.
DMPS: Dimethyl polysiloxane
Benefits of DMPS:
· Food remains crunchy for a longer period of time.
· Oil does not burn that fast.
· Lesser lather while frying.
· Retains the original taste.
· Does not let oil evaporate.
· Oil does not change its color even after frying.
3.NatureFresh Purita kachi ghani pure mustard oil
Nature Fresh Purita is renowned for its purity and taste. With a pungency level of 0.27%,
which is higher than the highest AGMARK standard of 0.25%, Nature Fresh Purita is the
best oil for cooking your favorite fried dishes.
Nature Fresh® Purita ensures that your family is full of vigor and health. Mustard is used as
multipurpose oil. So whether it be cooking or pickling, mustard oil is preferred across.
Nature Fresh Purita Pure Mustard Oil is considered as one of the healthiest edible oils. It has
the lowest amount of saturated fatty acids and a high amount of mono mustard and
polyunsaturated fatty acids that are considered good for a healthy heart.
Mustard oil has an ideal ratio, close to 10:1 of Omega-3, which is known to prevent cancer of
the colon and stomach and Omega-6 Fatty Acid composition (Linolic and Alpha Linolic
Acid respectively), which are essential for health and metabolism
4.NatureFresh Oliante
“The most exotic olive oil from the land of Antequera in Spain”
Cargill uses “Grade A” seeds to extract the best quality mustard oil, which ensures the
highest level of pungency. Cargill nurtures more than 200 million olive trees in Spain and
brings the goodness that makes cooking food, a truly exotic delight.
Presenting another gem from the Nature Fresh stable – NatureFresh Oliante, the most exotic
olive oil from the land of Antequera in Spain.
In an era where anything and everything is commercialized, the olives of Antequera continue
to preserve their absolute communion with Mother Nature that has existed for centuries.
Nature Fresh Oliante comes from the olive trees over 600years old. The oil takes three years
of patient processing and what you get is the healthiest and most exotic olive oil. The
handpicked olives that go into the making of Nature Fresh™ Oliante remain almost
unaffected by time, true to their age and barely touched by modern technology. Nurtured in
such a land makes Nature Fresh Oliante truly exotic.
With four processing locations in Spain, Cargill produces more than hundred thousands of
olive oil every year, which makes Cargill the largest producer in the world. In fact, it is 5
times bigger than the closest second.
The process that begins at Antequera in Spain, with nurturing of olive trees and ends when
the olive oil is packaged, is fully owned and managed by Cargill.
Each bottle of Nature Fresh Oliante, be it Extra Virgin Olive .
Nature Fresh Oil
Parent Company Cargill
Category Cooking Oil
Sector Food Products
Tagline/ Slogan Taste yum, 5 liter fat bhi kam
USP Low cholesterol edible oil
STP
Segment Health conscious adults
Target Group All age groups, middle and high income, health conscious people
Positioning For people who want to stay light and active
SWOT Analysis
Strength
1. Dominant player of edible oil
2.Uses health platform
Weakness
1. Limited market penetration in edible oil market.
2.Rural area
3.Limited market penetration in food processing industry
4.Price of product is slightly high that affect the demand
5.Low advertising and visibility
Opportunity
1.Sharp increases in demand of branded oil
2.High market awareness in metropolitan city of branded oil
3.Health conscious people increasing
Threats
1.The treats of low price competition
2.A large number of domestic as well as multinational players
3.Highly competitive industry
Competition
Competitors
1.Sundrop
2.Dhara
3.Nature Fresh
4.Saffola
5.Sampriti
5.Gemini™ refined cooking oils
Gemini refined cooking oils retain the freshness of the oil from the time it is packed to the
time it reaches the consumer. This is possible by the unique Freshness Intact Technique- a
unique packaging technology that preserves the benefits of the oil.
Cooking oil starts losing its freshness after refining or during storage and packaging as well
as due to air contact. To get oil that has its freshness intact, only Gemini Refined Cooking
Oil uses FIT technology. Using this technology, the oil after refining is stored under
controlled atmosphere right through packaging. Also when it is packed, a protective shield of
nitrogen is created above the oil, inside the pack.
This ensures that Gemini Refined Oil retains its freshness unlike any other refined oil. When
we cook our food in FIT empowered Gemini Refined Oil, the food remains fresh for longer
period of time· Gemini now comes fortified with the goodness of vitamins A, D and E.
· The level of fortification in Gemini Refined Oils ensures that it fulfills 40% of daily human
requirement of Vitamin A, 16% of Vitamin d and 15 % of Vitamin E. Available in refined
soya bean, sunflower, kardi, groundnut, cottonseed, filtered groundnut, mustard oil and
vanaspati. Gemini is the largest selling edible oil brand in Maharashtra and is a leading brand
in South India.
Based on the Nielsen Company Retail audit data MAT December 2007
Gemini Cooking Oil
Parent Company Cargill
Category Cooking Oil
Sector Food Products
Tagline/ Slogan Taazgi jo chalti jaaye
USP Low cholesterol edible oil
STP
Segment Health conscious adults
Target Group All age groups, middle and high income, health conscious people
Positioning For fresh and healthy food
SWOT Analysis
Strength
1. Dominant player of edible oil
2.Uses health platform
Weakness
1. Limited market penetration in edible oil market.
2.Rural area
3.Limited market penetration in food processing industry
4.Price of product is slightly high that affect the demand
5.Low advertising and visibility
Opportunity
1.Sharp increases in demand of branded oil
2.High market awareness in metropolitan city of branded oil
3.Health conscious people increasing
Threats
1.The treats of low price competition
2.A large number of domestic as well as multinational players
3.Highly competitive industry
Competition
Competitors
1.Sundrop
2.Dhara
3.Nature Fresh
4.Saffola
5.Sampriti
6. Rath
With more than 50 years of presence in India, Rath is a heritage vanaspati brand. It is a
trusted name associated with cooking delicious Indian traditional recipes and sweets.
Rath is one of the leading brands in north India and is available in 1 liter pouch, 2 liter
jar and 5 liter jar.
Rath Vanaspati Ghee
Parent Company Cargill
Category Cooking Oil
Sector Food Products
Tagline/ Slogan Aap Ka Hath aur Rath ka Swad
USPLeading vanaspati brand in North India and a market leader in the National Capital Region of Delhi
STP
Segment Health conscious adults
Target Group All age groups, middle and high income, health conscious people
PositioningRath is a trusted name associated with cooking delicious food, purity and goodness
SWOT Analysis
Strength
1. Dominant player of edible oil
2.Uses health platform 3.Leading vanaspati brand in North India and a market leader
Weakness
1. Limited market penetration in edible oil market.
2.Rural area
3.Limited market penetration in food processing industry
4.Price of product is slightly high that affect the demand
5.Low advertising and visibility
Opportunity
1.Sharp increases in demand of branded oil
2.High market awareness in metropolitan city of branded oil
3. Health conscious people increasing.
Threats
1.The treats of low price competition
2.A large number of domestic as well as multinational players
3.Highly competitive industry
Competition
Competitors
1.Sundrop
2.Dhara
3.Nature Fresh
4.Saffola
5.Sampriti
Three kinds of Nature Fresh™ Oliante to choose from
Each bottle of Nature Fresh™ Oliante, be it Extra Virgin Olive Oil, Pure Olive Oil or
Pomace Olive Oil, brings the magic of olive alive.
• Extra Virgin Olive Oil
Is the highest quality of olive oil. To bring out the delicate flavor in the first press, a panel
of Cargill experts judges the olive for taste, mouth feel and aroma to bring you Nature
Fresh™ Oliante Extra Virgin Olive Oil. As the healthiest cooking medium, Extra Virgin
Olive Oil is preferred for salads, or is served at the table with bread for dipping. It is also
added to soups and stews.
• Pure Olive Oil
Comes from the refining process of olive oil named "lampante" and by adding a
percentage of extra-virgin olive oil. Pure Olive oil is used for all kinds of high heat cooking
such as pasta, lasagna, stir fried vegetables and an array of Indian dishes like aloo Gobi,
chicken curry or even a chicken biryani.
• Pomace Olive Oil
Is a blend of Extra Virgin Olive Oil and refined Pomace oil. Pomace Olive Oil is a very good
baking and frying medium. It is popularly used to make French fries, crispy fried chicken,
baked potatoes and more.
Core competencies
These are the core competencies you'll find throughout Cargill:
Supply chain management
Risk management
Research and development
Risk management
The steady hand of experience
In today’s volatile markets, our customers look for a steady hand of experience to help them
manage their exposure to price risk. For years, Cargill has been identifying, measuring and
managing its own exposure to risk. We also offer this service to our customers.
We work with you closely to measure your exposure to risk and quantify your risk tolerance.
Then we develop and execute sound strategies that diminish the volatility. By managing your
risk as if it were our own, we help you keep costs within an established range and preserve
the potential to capture the upside of an opportunity.
Analytical tools
Cargill has a broad range of analytical tools by which we measure and assess price risk. To
be sure, risk management is one of our company’s core capabilities. Every day, we buy and
move large volumes of commodities from where they are produced to where they are needed.
Our ability to provide risk-managed supply chains makes us a reliable supplier to you.
Supply chain management
Moving goods from farm to factory
Moving massive amounts of raw materials from continent to continent and farm to factory is
both art and science. For more than 100 years, Cargill has been shaping its supply chain
management capabilities. We have few equals in the world in terms of the volume and
breadth of materials we move, the numbers of customers we serve, and the significant
numbers of partners we team with.
Optimizing supply chains
Optimizing supply chains through insightful strategy, inventory management, partner
collaboration, and radical operations planning has resulted in millions of dollars saved for
Cargill customers. In the redesign of a supply chain for a food manufacturer, for example, we
were able to reduce inventories by 28 percent.
Expert execution of our supply chain management strategies and tactics has led to a wide
range of benefits, including:
Improved cost efficiencies
Improved revenues
Faster time to market
Faster product development cycles
Enhanced customer and supplier relationships
Research & development
Scientific expertise that creates distinctive value
Our customers turn to Cargill for our scientific expertise when the challenge is enhancing an
existing product, improving process efficiencies, or uncovering a solution that helps them
launch a first-to-market innovation. Our goal is to leverage Cargill research and
development capabilities to generate distinctive value through new, improved products and
innovative ways to reduce costs or both.
Unsurpassed breadth and depth of technical expertise and resources
Our global team includes more than 1,300 research, development, applications, technical
services and intellectual property specialists working in more than 200 locations. Together,
they provide a spectrum of services encompassing technical service, applications,
development, research, intellectual asset management, and scientific and regulatory affairs.
We can provide the people, capabilities and facilities to solve virtually any technical
challenge across a range of industry segments, including:
Animal and fish feed
Bio industrial products and bio fuels
Food ingredients
Meat and other proteins
Leveraging global knowledge across markets
With R&D centers in Europe and North America and applications and technical services
professionals in locations across the Americas, Europe, the Middle East, Africa, and Asia,
Cargill has a window on the world. Our global presence enables us to stay at the forefront of
emerging customer needs and solutions and bring important new knowledge to you.
In addition, the breadth of our technical expertise enables us to leverage technologies
developed in one area to solve customer challenges in others. For example, our deep
knowledge of animal nutrition is informing solutions for human nutrition.
Our ability to immediately tap our technical expertise across businesses and disciplines
around the world allows us to leverage our best, most relevant knowledge to solve problems
quickly. This access to Cargill’s world of scientific and technical knowledge helps avoid the
time and cost of reinventing — and allows you to move your product to market more
quickly.
Tailoring foods for local tastes and cultures
Cargill’s strong regional presence enables us to provide customers with the applications and
technical services support to create products tailored to local tastes and cultures. Few, if any
companies, can provide both global R&D support and regional solutions that we can.
Understanding both product ingredients and processes
Helping our customers create value includes deep understanding of both product ingredients
and product processes. Our technical teams include experts whose sole focus is effective and
efficient process solutions. Their expertise can help you reduce costs and generate added
value.
Sales & Distribution
Cargill has a network of 1000+ distributors spread across the country with an access
over 1000 towns and reaches 2, 50,000 retail outlets to sell our products. The company has a
strong presence and a proactive stance with respect to modern trade. There are direct selling
agreements in place with key accounts like Reliance Retail, More, Big Bazaar, Spencers, D-
Mart, etc.
The company places a lot of importance to growing business with this fast emerging and
consumer friendly retail format. The company has several initiatives in place to provide value
to this channel including a specialized multi functional team to help cater to the specific
needs of these customers. At the same time, we realize the importance of the high frequency
stores and the value they offer to consumers and manufacturers alike.
Cargill vs. Competitors
With growing quality consciousness and plummeting price differences between
packaged and non- packaged edible oils, the packaged edible oil sector will capture almost
50% of the market share within few years. The packaged edible oil consumption is
only about 20% of the total 12.5 million tonnes domestic consumption.
Due to advancement of packaging technology, the price difference between
packaged and loosely sold oils has significantly come down.
Cargill controls more than 12% of the packaged edible oil market. As a result of the
increasein hea l t h consc iousnes s , consumer s even i n t he sma l l e r t owns a r e
g r adua l l y sh i f t i ng t o packaged edible oils from loosely sold oils.
The packaged edible oil industry is growing at 10 % annually and half of the
market would be controlled by packaged oil manufactures within few years.
Cargill brands vs. other brands
With the competition increasing after the arrival of retail companies, maintaining quality while keeping the prices down would be a challenged for all the packaged oil makers.
Ca rg i l l I nd i a s e l l a round 5 ,00 ,000 t ons o f ed ib l e o i l a yea r , i nc lud ing soya , pa lm , sunflower , groundnut and mustard oils besides hydrogenated fats , to wholesale trade , process food industry and retail customers. Its share is around 4% of the million tonnes of total edible oil sold in the country in a year.
Other brands like Fortune of Adani wilmer Ltd. Having approximately 50% market share in the entire edible oil market. Marico industries with a market share of 13-15% with brands like Saffola is well known brands in the edible oil industry hence gives tough competition to Cargill refined oils.
Consumer Voice – A monthly magazine of consumer interest
F o r t h e f i r s t t i m e i n I n d i a , r e f i n e d s u n f l o w e r o i l b r a n d s h a v e
b e e n t e s t e d b y a n i ndependen t gove rnmen t funded o rgan i za t i on fo r
t he i r f a t t y a c id p ro f i l e and o the r parameters like colour, rancidity etc. to
scientifically assess and pinpoint exactly how healthy each refined oil brand is.
Terms and Terminology Used
1) Beat- The route list containing the names of the retail outlets that are being visited on a
particular day.
2) Super Stockiest -A s t ock i e s t p rov ide s a l oca l de l i ve ry po in t f o r
t hemanufac tu r e r /ma rke t e r . They s t o r e t he p roduc t s ; b r eak bu lk ,
and distribute to the distributors and retailers.
3) Carrying & Forwarding Agents - Carrying & Forwarding agents work on a
commission basis. He acts as a risk reducer for the company as he takes care of
every risk involved in storing of goods in depot.
4) D i s t r ibuter
A d i s t r i bu to r p rov ide s a l oca l de l i ve ry po in t f o r t hemanufac tu r e r /
ma rke t e r . They s t o r e t he p roduc t s , b r eak bu lk , and distribute to the retailers
and wholesalers.
5) Whole sa l er s - A who le sa l e r pu rchase s h i s s t ock o f goods f rom the
distributors and sells them to the retailers.
6) Sales officer - The sales head of a certain territory who manages and co-
ordinates the sales within that particular territory.
7) ISR- Interim Sales Representative Employees of the company and on the payroll
basis. They carry out the sales operation in a particular territory.
8) DSM- Distributor Sales Man . Employees of the company but not on the
payroll of the company. They also carry out the sales operation in a particular territory.
9) CP- Consumer Pack . This includes all the types of packing like 1 ltr pouch,
5 ltr and 15 ltr jar excluding the tin packing’s.
10) BP- Bulk Pack. This includes commercial packing like 15 ltr & 15 kg tins.
1 1 ) P r i m a r y S a l e s -
S a l e s o f g o o d s f r o m t h e d e p o t o f t h e c o m p a n y t o t h e super
stockiest or the distributors.
12) S e c o n d a r y s a l e s
S a l e s o f g o o d s d o n e f r o m t h e d i s t r i b u t o r s o r s u p e r stockist to the
wholesalers or retailers.
13) Productive outlets- Outlets selling products of Cargill India Pvt. Ltd.
14) Unproductive outlets- Outlets not selling products of Cargill India Pvt. Ltd.
15) Sa l e s Ca l l - V i s i t i ng t he r e spec t i ve ou t l e t s on a spec i f i ed bea t t o
t ake t he i r respective orders.
CHAPTER 4
WHAT THE PROJECT IS ALL ABOUT…….
In India the share of Premium oil category is going to increase from 2% to 25% in the next 8
to 10 years, so the Company decided to launch a product (Sweekar) in this category.
The Project was basically divided into 3 stages:
(1) Planning
(2) Implementation
(3) Verification
Steps involved:
Analysis of existing retail outlets
Discovering the uncovered area
Designing an optimum distribution channel for uncovered area
Sustenance of new productive outlets
Tracking of outlets
Analysis of existing outlets
Revising the list of each beat :
The first step towards our objective was to know where actually we stand today. So every
day I have to visit a beat with the respective DSM or sales executive. First we need to check
whether the list is complete or not. One thing was also important, we also needed to add
newly opened outlets in that particular area and eliminate those outlets which have closed
their business or does not sell refined oil anymore. So a revised new beat list was prepared
after visiting all the outlets in East Delhi.
Analysis of revised beat list
After making the revised beat list the total number of outlets and total distribution was found.
Now we have to devise a plan to make the unproductive counters productive through the
analysis of the beat list. Beats with more unproductive calls have to be aimed first.
Understanding the buying behavior and the problems faced by the dsm or sales executive in
converting unproductive counters and then coming up with the solution.
Attempt for converting the unproductive calls
The main objective was to increase the distribution i.e. to increase the total number of
productive outlets. So after the analysis of each beat I have the information of total number
of unproductive outlets in each beat. So there was a each day plan for every dsm and sales
executive. Plan was divided into three s t e p s . F i r s t s t e p w a s t h a t e v e r y
d a y dsm and sales executive h a v e t o a t t e m p t f o r converting the
unproductive counter into productive in their regular beat. For new productive
counters they were given an extra Schemes benefit like power of reducing the rate from
5 Rs to 10 Rs per box, cash display on 5litres jar of Nature Fresh Acti lite and Nature
fresh Sunflower oil and credit facility in case required. And then also if dsm and sales
executive were unable to convert some ou t l e t i n to p roduc t i ve t hen t hey mus t
wr i t e down the name o f t ha t outlets and the problem they faced. For second
step of plan I can go with him and give a brief presentation on Nature Fresh and sweekar.
As the main strength of our product is the quality of product which we offer . So the
brief presentation emphasized more on itsquality and benefits which we offer at affordable
price and how our products differentiate from other competitors. I tried my best in
persuading the shop owner to sell our product. But then also if I was unable to convert that
outlet then there comes step 3rd of our plan. Third plan included a full team visit to that outlet
for making sure that outlet must sell our products.
Discovering the uncovered area
After preparing the revised beat list there was a need to know the uncovered area of east and
west Delhi. So with the help of whole team and roadmap, we highlighted the uncovered
areas which need to be covered. The main area which was discovered as uncovered or
partially covered of East and South Delhi we re Ra t i ya Marg ,Ha r sh V iha r , Bandh
Road ,Sake t , khanpu r , e t c
DESIGNING OPTIMUM DISTRIBUTION NETWORK FOR UNCOVERED AREAS
Listing of outlets
The first step towards designing of optimum distribution network for uncovered areas was to
know how much potential each of these markets have.so in order to know the potential , the
listing of outlets was done.
Restructuring and designing the beat plan
After listing of new outlets a route map was designed. New outlets were divided according to
the designed new beat plan. some old beats were also restructured to include the new outlets.
the basic idea behind preparing the beat plan was to determine the potential of the uncovered
areas. Secondly, how many new outlets we have found and how much more manpower we
will require in order to cover the beat.
Assigning distributer
Now as we know the potential of the uncovered markets, we need to focus on the aspect of
distribution i.e. who will provide regular supply to that area. In order to ensure better supply,
the distributer should be the one who is well versed with that particular area and also have a
good credit worthiness.
Recruitment
In order to cover all the outlets in a particular area certain recruitments were also made so
that we have enough manpower to perform our work in the best manner.
LAUNCHING THE PRODUCT
Now comes the main phase of the project, i.e. launching of the product SWEEKAR. Now
since we have the beat plan, manpower as well as the distribution to ensure regular supply so
a launching exercise was carried out wherein a team of 3-4 members were made. The work
of this team as to visit each outlet and give a brief presentation of the company and its new
product SWEEKAR. Major emphasis in the presentation was given to the quality of our
product, its benefits, and how our product differentiates itself from its competitors.
One person makes sure that the posters and danglers are pasted and hooked well so as to
increase the visibility of the product. Launching exercise by a team has a very much
importance as the first visit of the company to the retail outlet makes the shop owner think
differently and we can easily persuade him to sell our product. A visit by the whole team has
a great impact on the owner of the outlet rather than a single salesman.
In the areas of Dilshad Garden, Dilshad Colony, Mandoli Road we got great success in
terms of productivity at the time of launching of the product. The main reason for our success
in that area was that the distribution of our product was quite well. Therefore success ratio
was high as what we expected.
Mechanism for sustenance of new productive outlets
Now once an outlet starts selling SWEEKAR necessary steps should be taken to make them
sell our product regularly. Following are the steps that can be proved important
Regular visit:
Main aspect for sustenance of new product is the regular sales visit of the sales person or the
dsm. Visits to the retail outlets are generally weekly, thereby continuing a good relation with
a particular outlet
Supply mapping:
If a salesman goes regularly and takes order from x outlet and due to some problem with the
retailer, the supplier does not supply the product. So there must be some proper mechanism
to check , whether the order received is supplied on time or not. The respective dsm must
check from the distributer that the order taken from him is supplied to each beat or not. If not
then he should try to find out the problem and the solution to it.
Aggressive promotion:
If the visibility of our product is increased, then the customer will get to know our product
better. It will create a demand from the consumer side which will force the retailer to sell our
product. Therefore chances for sustenance of the new product go very high. There are various
ways to increase the visibility. Some of the major ones used by the company are tv
commercials, print ads, hoardings, posters, danglers, car screens, etc.
Trade promotion:
The company will have to offer lucrative trade promotion schemes, in order to push the
primary sales. This would include incentives to stockiest. At the retail level, following
measures can be taken:
Schemes such as certain percent off on quantity purchase.
Shops displays.
A 15 ltr tin free with a purchase of Rs 50000 or above.
Apart from this window self displays can be purchased outright.
Consumers promotions:
Some of the consumer promotion methods can be as follow:
Money savers
Free gifts such as pen, pencils, etc on return of oil wrappers
The company can announce “consumer contest” (with proof of purchase) with
attractive prices, supplemented by an advertisement campaign.
TRACKING OF OUTLETS
As per the specific beats, beat list were maintained containing all the outlets. we had to list
all the outlets in a territory selling our product. Therefore outlets were differentiated on the
basis of A, B and C depending on their sales. After launching of the product and displaying it
in the specific outlets, we need to check how many outlets were able to sell our product and
how many of them were not. Even if the outlets who purchased our products were able to sell
whole of the stock or not. Were there any re order purchases also was also checked.
Efforts were made to find out why the other counters were not able to sell our product.
Therefore VERIFICATION was carried out to find out answers to certain questions such as
Whether the new product was properly placed with the retailers and wholesalers?
Whether the retailers were able to sell the product?
Whether the consumers themselves were asking for the product or whether it was
retailers who were making them aware of the product?
CHAPTER 5
Literature Review
An Empirical Model for Product Launches In Industrial Market and Exit under Market
Improbability
SHRI. SURESH TULSHIRAM SALUNKE 1 and R. K. SRIVASTAVA 2
University of Mumbai, IndiaDirector General, Sterling Management Institute
Product Launch
As Product Launch is door to full commercialization-market and operations to start
production, as stated by Robert G. Cooper, 2001.It is the final point at which the organization
can decide to stop the project. For Product success, it is important to lay down well thought
plan of action, which is backed by ample resources, and course of action to face the
unforeseen events.
Drivers for Product Launch :
New products are the key to corporate prosperity, to derive revenue, maintain the bottom line
And market share. It is possible to achieve by using various drivers for Product launching, as
Suggested by Dr. Robert G. Kooper (2001.p 8-10) of Winning Product.
1. The first driver is Advanced Technology, which gives exponential increase in know-how,
helps in giving such a novelty factor to the Product, which has not been dreamed of in
decades; and this driver makes it possible to provide solutions as per customer’s demands.
2. The second driver is changing customers’ needs. Customers expect new Product with
Significant change.
3. Third driver is Shortening Products life cycle, which arises out of increasing pace of
Technological change coupled with change in market demands.
4. Fourth driver in Product launchings is increased world competition, i.e. access to foreign
Markets like never before. At the same time, our domestic market has also become a part of
International market, with competitive pricing.
Product life cycle [PLC]:
Michael E Porter (2004.p 194-196) from Competitive Advantage, states that, PLC in the
frame work of Product innovation ultimately yields a dominant design, where optimal
Product configuration is reached. As the Product design stabilizes, increasingly automated
production methods are employed; and process of innovation takes over, as the dominant
innovation mode lowers the cost. Ultimately innovation of both the types begins to slow
down. Therefore the concept of dematurity has been added to the frame work, to predict the
possibility that, major technological changes can throw the industry back into a fluid state.
Ashok Ganguly [1999.p.164-169, Business-driven R&D elaborates aptly that, a Product life
Cycle depends on science and technology. Product life cycle is decreased from 1960 s-in
As per Michael Grieves, 2006.p.39.2006), & Clayton M. Christensen and Michael E. Raynor,
(2003 Product Lifecycle Management (PLM) is an integrated, information-driven approach
Comprised of people, processes/practices, and technology to all aspects of a Product s life,
from its design through manufacture, deployment and maintenance-culminating in the
Product is removal from service and final disposal. By trading Product information for
wasted time, energy, and material across the entire organization and into the supply chain,
PLM drives the next generation of lean thinking.
Factors affecting in industrial Product development Launch :
Ashok Ganguly [1999.p136-160, Business-driven R&D] suggests that, Industrial Product
Development is most neglected area in India. The First factor is Human factor, which
occupies a pivotal place in industrial R&D and Product Launch. The second factor is
philosophy of business driven R&D evolved from mandate, which has ownership both in
research and in the operating business. It receives complete support and commitment at all
levels of management. Third factor is identification of business priorities, which are
converted in real life of Product Launch and service by & large and is applicable maximum
for five years in the industrial application based on data generated from 25 years by author
Requirement of industrial Product services:
P.Kotler (p.225, 1996) on Marketing advises to consider industrial services aspects
on Product development and launches. For example service reliability and accuracy designed
to exceed customer expectations can be one of the major strategies. Price and performance
time of the Product should be less, for the convenience of customer operations. Three to five
years flexibility in service availability can be considered while designing the
industrial Product service strategy and this conclusion was drawn based on more than 800
industries study data.
Benefits of PLM study:
According to Clayton M.Christensen, (2002) and C.K.Prahlad & M.S.Krishnan, (2008),
In industry, the usefulness of PLM tools is widely accepted for clients to take up the
solutions.
Companies are hesitant in investing in products that don t have documented benefits or easily
Calculable returns. The return on investment for PLM solutions is difficult to calculate as it
Influences the outcomes of products, and these products are themselves influenced by
various factors. However it is made possible by Bearing Industries by creation of data bank,
based on experience and made their own internal specification such as bearing life cycle in
Industrial application-BL-011-2009 & QS 044 of Organization internal specification. These
studies are generated by Bearing Industries by building data bank from 1980 to 2009 & are
useful to identify the Product life cycle and can be used as alarm for exit of Product under
unfavorable conditions for the customers.
The aggressive Product Launch
New Product Launch includes trade show participation (Guiltinan 1999, Hultink et al. 2000),
Product demonstrations (Guiltinan 1999), distribution channel arrangements (Guiltinan 1999,
Hultink et al. 2000, Di Benedetto 1999), soliciting and acting on to customer feedback (Di
Robert G. Cooper.(2001) , and undertaking Product trials (Senese 2002). Product Launch
Aggressiveness refers to, how much effort a firm puts into the Product Launch. It is a
measure of the intensity and complexity of the Launch actions carried out by the company,
while introducing new Product. Launch volume is defined as the total number of actions that
support a Product Launch. Product launches where firms undertake large numbers of actions
and are more aggressive. Launch diversity is defined as the extent to which
a Product Launch is comprised of actions of many different types. New Product launches
consisting of many action types, are more aggressive. Launch duration is defined as the time
elapsed from the start to the end of a sequence of uninterrupted action events.
Setting Product Launch goal: Dr. Robr G. Kooper (2001 p.140 to142) Winning Product
2001) describe three criteria while setting Product Launch goal.
1. The first criteria is prospector businesses, it covers, percentage from new Product,
percentage of sale and ability to open new window for opportunity.
2. The second criterion is analyzer enterprises, which covers ROI (Return on Investment) and
Success rate. Also, it is necessary for an organization to confirm innovation efforts, fits or
Support the overall business strategy.
As suggested by R.K.Srivastava, (2006) & S.T.Salunke (ISSN 2231-1009 p.23-35), in this
Industry Product introductions have always been common and, on average, 10 new brands
were rolled out every year. Secondly, the industry, relatively speaking, is a simple industry;
that is, complicated dynamic factors, such as technological progress, or dynamic price
discrimination, which are commonly employed over the life cycle of a high-tech
durable Product, are absent here. After five years of Industrial application, ball bearings are
upgraded; and to reduce the sales after service as per internal organization, specifications are
created over experience of 35 years in the industrial application - BL-011-2009.As observed
by Roberto Vergant, (2009), by and large people like the change after five years.
Gap Analysis
Based on the Literature survey, lot of research is done on production Launch and exit under
market uncertainty, in automotive segment; however, the bearing industry is yet to develop a
model on industrial market Product Launch and exit based on market conditions.
In India there is need of single model that can demonstrate Product launching strategy & also
can describe discontinuance of the Product at the appropriate market situation.
In the bearing industry, there is very less probability for blue ocean strategy in business
Development and competition is very high. Also investment is very high for development of
Products. Accordingly Dependent variable are sales ,cost of Product, profitability &
investment cost for development new products .The other independent variable-Success of
new Product, Field performance , Hence there is need of research on constructing a model for
selection of new Product at enquiry stage, for creation of global business foot print for Indian
entrepreneurs or stake holders.
Strategic criteria on Product Launch –
Industrial Product services
Life cycle, Return on Investment [ROI],
Target market
Policies for Product Launch –
Out of Launch performance
Return on investment
Field performance
Sustainability in market
Exit period from business
CHAPTER 6
RESEARCH METHODOLOGY
Research is a very important activity which needs to be conducted before launching of a
product .In our project we had done a lot of research before the product was launched. for
example, in our planning phase we were suppose to carry out a research to find out how
much quantity of fortune, saffola, sundrop and other local brands are sold in the market to get
a rough idea as to in which area more of supreme quality oil is consumed and in which area
inferior quality oil is consumed.
For example like the areas which I covered that included consumption of inferior quality oils
include Bandh Road, Ratiya Marg, Saket, harsh vihar, etc.
The areas where high quality premium oil is consumed includes Paschim vihar , Madipur,
Mandoli Road, etc
RESEARCH OBJECTIVE:-
Following was the research work assigned to us:-
1) To analyze customer choices and preferences for a particular brand of refined
sunflower oil.
2) To analyze the competitive scenario of other brands as to determine the quantity
of other oil sold.
3) To collect information about the product, competitors, etc. where the research
was conducted
4) To update the existing as well as finding new outlets which were not listed in the
beat book
5)
Problem Definition:
“Market Research for Premier oil category of Sunflower Oil with detailed analysis and data mining of key competitor brands for positioning of new brand from Cargill.”
Approach to the problem:
Finding solutions to the problems is not an easy task and therefore a lot of research activities
were conducted to find solutions to such queries. For example, certain questions were asked
from the retailers which are as follow:
o Do you know Cargill?
o Do you know SWEEKAR?
o How many brands of edible oil do you have in your shop?
o Which brand of oil has the highest demand?
o What you expect from the company?
o Which type of packaging do you sell more?
Research Design:
A "blueprint" for research, dealing with at least four problems: This questions to study, what
data are relevant, what data to collect, and how to analyze the results was carried out. We
carried out a quantitative research where in an excel sheet was prepared and solutions to such
problems were determined.
Following work was carried out.
Preparing list : a list was prepared which included all the relevant questions as to
which brand of oil the retailer sells and in what quantity?
Which brand of oil is mostly sold in the market?
What are the profit margins?
Collected information : Once the list was prepared, then answers to such questions
were collected to find out in which area a particular brand is mostly sold.
Compilation: the information collected is now compiled and analyzed in the form of
a table to carry out comparison. This was done in order to distinguish the outlets in
the categories of A, B and C.
Reporting: once the compilation was done we were now supposed to report to our
superiors so as to know if we have not left any outlet unattended.
Data Collection:
Data collection was mainly done in two ways:
Using the data which has already been collected by the sales person and the dsm of
that particular area.
Using the data which I have collected by personally visiting each shop in a particular
area with the help of the beat book
Primary Data
Primary data is the first hand information. This information is original in nature. In primary
data collection, we collected the data ourselves using methods such as interviews and
questionnaires. The key point here is that the data we collected is unique to us only and our
research and, until we publish, no one else has access to it. In my project I had collected
primary data by visiting each retail outlet and by getting the survey form filled from them.
Secondary data:
Secondary data is the second hand information which has been collected by some other sales
person or the dsm. The source of collecting secondary data was the beat book where the
information about the outlets which already had been collected by the concerned sales person
and the dsm of that particular area. I used this data to find existing as well as new outlets.
Sample Design:
A procedure was prepared to collect data to obtain a sample from a given population. On the
basis of this data inferences were drawn about the whole market.
Sample Size
The sample size in my research was 30-40 outlets which I was required to cover every day.
However this number varied depending upon the market potential of that particular area. In
these areas 35-40 retailers were chosen and survey form were used to collect the information.
Sampling Technique
Here, sampling is based on non-random sampling wherein we had to visit a specific area and
cover all the listed outlets which was there in beat book.
CHAPTER 8
DATA ANALYSIS AND FINDINGS
This was the main phase of our project wherein we were supposed to collect data from the
areas assigned to us and on the basis of such data inferences were drawn regarding the
quantity and quality of oil sold in a particular market.
Data collected with the help of Customer’s and Consumer’s survey form is shown in the
form of PIE-DIAGRAMS as follows:
In the first phase of my project, I have visited a total of 373 outlets in east and South Delhi.
On the basis of carrying out an analysis, the outlets were classified as very important,
important and neutral. These are shown as below:
(QUANTITY PREFERENCE)
VISIBILITY OUTLETS
Very important 10
Important 94
Neutral 269
outlets
Very important Important Neutral
FINDINGS:
On the basis of quantity preference analysis carried out of 373 outlets, it was found that:
10 outlets out of 373 outlets (2.7%) were found to be those outlets which are very
good i.e. they sell oil and oil products in larger quantity. Some of them are large
retailers or even the wholesalers.
94 outlets out of 373outlets (25.20%) were found to be important outlets. These are
those outlets which carry on their business on an average basis. They generally
include the wholesalers.
269 out of 373 outlets (72.11 %) were found to be outlets of neutral category. These
are those retailers who carry on their business on a very small scale. They generally
sell local brands such as Mahakosh, Panghat, etc.
On the basis of brand preference, analysis was also carried out findings of which are
as follow:
(QUALITY PREFERENCE)
BRANDS PREFERED OUTLETS
FORTUNE 175
NATURE FRESH 80
OTHERS 118
#REF!
CATEGORYVERY GOOD
FINDINGS:
Of all the outlets visited, it was found that:
175 outlets out of 373 (46.91 %) found fortune as the best selling brand as
compared to all other brands.Therfore fortune is considered to be the market
leader.
80 out of 373 (21.44%) gave preference to nature fresh as the second best
selling brand after fortune.
118 out of 373 (31.63%) were those retailers who were mostly givinf
preference to other local brands.
AREAS COVERED CATEGORISATION
CATEGORY PERCENTAGE
VERY GOOD 20%
GOOD 35%
NEUTRAL 55%
PERCENTAGE
VERY GOODGOODNEUTRAL
INFERENCES DRAWN:
From the above table it can be seen that
20% of the outlets were very good which mainly included the areas of khyala
, Paschim Vihar, Raghuveer Nagar ,etc.
35% of the outlets were found to be good which were established in the areas
of Mehrauli, Chattarpur, Bandh road, Khanpur, etc.
The remaining i.e. 55% of the areas were found to be neutral which included
the areas of Saket, Ratiya Marg, Mangal Bazaar, etc
SAMPLE SHEET 1
Date:11th MAY Name of Summer Trainee/SR: VINOD KUMAR
Beat Name: PASCHIM VIHARAreas Covered: JWALAHRI, MULTAN GR,PASCHM VHR,BG 6 AND 7
Shop Name includes name of shop &
landmark/adderss
SAFFOLA SUNDROPFORTUNE(RV
O) NF(RVO)
Visibility
Weekly Weekly Weekly WeeklySale Stock Sale Stock Sale Stock Sale Stock
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
SHARMA STORE (SHOP NO.3 B-2 PASCHIM VHR) 1 1 1 5 1 3 3 2 ISHAKTI STORE (SHOP NO.18 B-2 PASCHIM VHR0 2 2 1 1 NKAMAL FLOOR MILL (SHOP NO.15 B-2 PASCHIM VHR) 2 1 1 1 NM.K. STORE (A-3/271 PASCHIM VIHAR) 2 1 1 1 NMAA SANTOSHI STORE (A-6/472 PASCHIM VHR) 1 1 1 3 3 2 2 IKAPOOR STORE (A-1/88 PASCHIM VIHAR) 2 1 4 2 2 2 IK.K.STORE (A-2 DDA MKT PASCHIM VHR) 1 2 1 2 1 NJAI DURGA STORE (A-2/57 PASCHIM VHR) 1 1 1 4 2 2 1 IUPPAL STORE (A-1 MAIN 1 1 1 1 2 1 1 1 1 N
MKT PASCHIM VHR)KWALITY STORE (A-1 PASCHIM VHR) 1 1 1 3 3 3 2 IKAPOOR STORE (A-7 MAIN MKT PASCHIM VHR) 2 1 3 3 2 2 IDURGA STORE (A-1 LIG FLAT PASCHIM VHR) 1 1 2 2 2 1 NLAXMI STORE (A-1B PASCHIM VHR) 1 1 1 2 1 1 1 N
INFERENCES DRAWN
This is a sample sheet of the work carried out by me in those area where more of premium
quality oil is mostly sold.. This survey was carried out before the actual launch of the
product. In this sheet it can be seen that most of the outlets are of very important and
important category which mainly sell branded products like fortune, saffola, sundrop, etc.
Apart from selling local brands also but in lesser quantity.
SAMPLE SHEET 2
Date:5th may 2012 Name of Summer Trainee/SR: VINOD KUMAR MALBeat Name: BANDH ROAD Areas Covered: BANDH ROAD, HOLI CHOWK
Shop Name includes name of shop & landmark/adderss
SAFFOLA SUNDROPFORTUNE(RVO) NF(RVO)
Visibility
Weekly Weekly Weekly WeeklySale Stock Sale Stock Sale Stock Sale Stock1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
DURGA TRADERS (NEEM CHOWK VEER BAZAAR) 2 2 1SINGH STORE (NEEM CHOWK VEER BAZAAR) 2 1AGGARWAL STORE (C-337 SANGAM VIHAR) 2 1 1 1 NAVINASH STORE (G-392 3 1 1 1 N
SANGAM VIHAR)LAXMI STORE (LAL DORA MKT. SANGAM VIHAR) 3 2 2 1 NJAGDAMBA STORE (C-174 SANGAM VIHAR) 3 1 1 1 NSHYAM TRADERS (596/2 LAL DORA MKT.SANGAM VHR)
10 2 4 5 1 3 N
SANGMESHWAR STORE(596/2 LALDORA MKT.) 1 1 3 1 2 1 NGOYAL STORE (ASTHAL MANDIR ROAD SNGM VHR) 2 1 1 1 N
INFERENCES DRAWN
This is a sample sheet of the work carried out by me in those area where more of inferior
quality oil is mostly sold. This survey was carried out before the actual launch of the product.
In this sheet it can be seen that most of the outlets are of neutral category which mainly sell
local brands that too in lesser quantity.
SAMPLE SHEET 3
Name of Shop
Visibility Stock of Sweekar
Display of
Sweekar
Special Feedback for each shop
Presen
Absent
Stock Given
Off Take(ltr)
Reason for No Stock
Present
Absent
tPaid(P)
Unpaid(UP)
V.K.TRADERS (MAIN MKT MANDOLI ROAD) I P
6PC(1LTR)
2PC(1LTR) UP
ARUN AND CO. (MAIN MKT MANDOLI ROAD) I P
6PC(1LTR)
3PC(1LTR) UP
MITTAL STORE (MAIN MKT MANDOLI ROAD) I P
6PC(1LTR)
2PC(1LTR) UP
DEEPAK STORE (MAIN MKT MANDOLI ROAD) I P
6PC(1LTR)
2PC(1LTR) UP
DGUPTA STORE (MAIN MKT MANDOLI ROAD) VI P
20PC(1LTR)+2PC(5LTR)
5PC(1LTR) UP
JAMUU STORE (MAIN MKT MANDOLI ROAD) I P
10PC(1LTR)+1PC(5LTR)
5PC(1LTR) P
J.P.ARORA STORE (MAIN MKT MANDOLI ROAD) VI P
20PC(1LTR)+2PC(5LTR)
6PC(1LTR)+1PC(5LTR
) P
GAUPANSARI STORE (MAIN MKT MANDOLI ROAD) N A
RETAILER DID NOT TAKE THE PRODUCT A
BANSAL SUGAR AGENCY (MAIN MKT MANDOLI ROAD) N A
SMALL SHOP SO SALE NOT EXPECTED A
C.B SUPER STORE (MAIN MKT MANDOLI ROAD) VI P
20PC(1LTR)+2PC(5LTR)
6PC(1LTR)+1PC(5LTR
) PTARUN K.STORE (MAIN MKT MANDOLI ROAD) N A A
INFERENCES DRAWN
This is a sample sheet after the actual launch of the product SWEEKAR. This
sample sheet shows the actual quantity of goods sold as sample to the retailers.
It also determines whether display amount has been given to them or whether it
was an unpaid display. It can also be seen from the sheet that whether goods
have been sold to them and in what quantity and if not then what are the reasons
for not selling the goods to them.
CHAPTER 8
A. TITLE- “Market research for premier oil category of sunflower oil with detailed
analysis and data mining of key competitor brands for positioning of new brand from
Cargill”
B) The main objective of this project:
To study the consumer buying behavior of SWEEKAR oils in all the
modern trade outlets in DELHI and NCR
To recommend the various strategies and techniques to improve the sales
volume of SWEEKAR oils.
To find out the strength, weakness, opportunity, threats of SWEEKAR oils
and to suggest ways to promote the sell.
To understand the customer satisfaction level of SWEEKAR oils.
To identify the hidden expectations of customers from the SWEEKAR oils
To find awareness of the respondents regarding SWEEKAR oils.
To find out the new target customer for the SWEEKAR oils.
C) Scope of the study:
The main purpose of the research is to understand the customer consumption, perception and
attitude towards SWEEKAR oils of Cargill. This project helps in understanding how
the customer takes the purchasing decision and what the factors that they have
taken into considerations are. The various factors that can affect the purchasing
decision like quality of the product, brand image in the market and regulatory in the
supply etc has analyzed. Th i s w i l l g i ve oppo r tun i t i e s t o r e sea r che r t o ge t t he
b r i e f i dea abou t t he s t udy .
D) Significance of the study
1) Significance for the Industry
A study of the industry plays an important role in recognizing the stand where the
company l i e s i n t he ma rke t . The s t udy a l so i nc ludes va r i ous
o the r a spec t s i nc lud ing t a s t e and preference, desires, wants, requirements
of the consumer
It also helps to determine the satisfaction level of the consumer, so that the company can rectify the errors made but them in order to give effective services. Thus, a study of industry contributes its significant role.
2) Significance to the Researcher
Researcher prepares a questionnaire in order to find the responses from the consumer. The
questionnaires were designed on the primary objectives and were of both open ended and
close ended.
For the accomplishment of the project
For suggesting new market strategies
In order to collect the feedback of the consumers.
To find out the new target customer for the SWEEKAR oils.
In order to study the consumer buying behavior of SWEEKAR oils.
For the SWOT analysis of SWEEKAR oils.
In order to understand the customer satisfaction level and the hidden
expectations regarding SWEEKAR oils.
“LIMITATIONS”
Every work has some limitations. These are extent to which the process should not exceed. In this project, following limitations can be considered:-
1. Sometimes people behave artificially and it leads to faulty conclusions.
2. Less availability of information about the company and the where about
3. The sample size being taken for drawing a conclusion was too small to get an accurate result
4. The survey has been done in Delhi and NCR thus the psychological condition of other parts may be different from rest
5. During the survey I found that consumers were not interested in answering the question that were asked to them
6. The research is confined to modern trade outlets of Delhi and NCR and does not show a pattern applicable to rest of the country
7. Some respondents were reluctant to indulge personal information which can affect the validity of all responses.
8. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.
9. I was also suffering the time limitation which was fixed by the company
10. Consumers were also having less information about various products of the company
11. Lack of visibility of the brand in terms of proper knowledge about the quality of the product also affects the purchasing activity of the consumers. Though the advertisement has been launched recently but it will take some time to stabilize in the minds of the consumers.
12. Excessive price fluctuations in the oil industry
13. Some disputes between the retailers and the distributers were unsolved
14. Excessive dependence on price strategy of competitor market leader in oil segment.
15. Convincing to the retailer in low income residential area was a tough task as they were very less health conscious.
All the above statements are the limitations of the project. Sometimes language
was also a barrier while conversing with the consumers. The study has been
done keeping in mind all these limitations. The project was completed within
the specified period of time. Analyzing and understanding consumer purchasing
power was a big task to accomplish.
ASSUMPTIONS:
1) It has been assumed that sample of about 100 customers represents the whole
of the population.
2) The information given by the customer was unbiased.
SUGGESTIONS OF RETAILERS AND CONSUMERS
Leakage problem should be looked after and the replacement of the
leaked packets should be given to them
The company should reduce the price of their products and increase
the profit margins of the retailers as compared to their competitors.
There should be a proper channel of information wherein any
scheme introduced by the company should be made known to the
retailers at the earliest
Similarly if any scheme is introduced for the consumers then they
should be made aware of this with the help of print advertisement
Such as television if possible
PROBLEMS FACED BY THE RETAILERS
Low margins : most of the retailers complained that they are getting very
low margins as compared to other brands in the same category that they
were selling
Leakage problem : the retailers also complained about the leakage problem
which they were facing for which they were not getting any replacements,
not even the cartons so that they can shift the leaked products to new
cartons so that they can sell them.
Feedback problem : the retailers also complained that they were getting less
feedback from the company, like whenever any scheme is introduced by the
company they are not informed about it at the right time.
Quality problem: the retailers also complained that sometimes the quality
of the product was so low that it became a lot difficult for them to sell the
product.
MRP problems : the retailers also complained that in the days of rising
prices, they have to sell the product at a price which is even lesser than the
price at which they have purchased.
Problems related to new products : they also had the complained that
whenever the company introduces any new product, they are made aware of
this at a very later stage.
LEARNINGS
Managerial capabilities which we had to manage the salesman who accompanied us as well as the shop owners
Convincing capabilities
How sales can be enhanced
Knowledge of how an oil industry works at the ground level
Team management skills
Leadership skills
Analytical approach towards data analysis towards sales
How to increase product visibility
How to carry out daily activities in rigrous pressures
How to cover an untapped market where complete reach was not possible and then sustaining the sales in the specified territory
CHAPTER 9
CONCLUSION
Providing food product is a not everyone cup of tea. You cannot compromise in it and if
you will try for it you will not be able to sustain in the market for a long time.
OIL COMPANIES have to worry to provide that product which is not only fulfilling the
rules and regulation of government but also satisfy the customer. Cargill’s
products do exactly that and that is why it is chosen by CONSUMER VOICE.
CONSUMER VOICE - A government funded voluntary organization
t h a t w o r k s t o w a r d s c o n s u m e r e d u c a t i o n a n d a w a r e n e s s ,
c o n d u c t e d a l abora tory t e s t . A f t e r testing them on all possible
parameters like colour, adulteration, rancidity and fatty acid profile SWEEKAR ,
brands from the house of Cargill, was rated as the best quality and healthiest refined
sunflower oils in the country .
But still it is very tough for SWEEKAR to become no 1 in very near future because o f
t he t yp i ca l m ind s e t o f I nd i an consumer . To ach i eve t h i s pos i t i on Cargill
first wanted to increase its product availability in the market and it did by
t he expans ion o f cove rage a r ea . Now company i s work ing on
adve r t i s emen t s which are telecasted in most of the channels.
Most of the Indian families used oil in their daily food 90% of them use Mustard oil in
curries. But because of change in purchasing power Indian families are also conscious about
their health and now want to use refined oil also to protect their liver. Most of the
companies are trying to do something new and find that thing which help
customer to be healthy and fit. Fo r t h i s Ca rg i l l i s u s ing DMPS (a permitted
antioxidant as ingredient) . L a b results also have shown that food cooked in
SWEEKAR refined sunflower oil; absorb less oil as compared to food cooked in ordinary
oils so these are some key Characteristics of SWEEKAR which make it a better product
than its competitors. It was a very big opportunity for any management student to
work in such a big giant of a very huge industry. The project was excellent and the
learning was more than it was expected. Cargill gave full freedom and ask to perform like a
manager. It was great to get the knowledge how to manage a territory in an industry like
OIL INDUSTRY.
Learning was also valuable because meeting and working with such a big people of industry
itself a big experience. The project was basically based on opening of new outlets but it
consist so many things in it which I learnt like how to manage people? How get
maximum output from the people? And how to make a balance in sales.
SWEEKAR was a very good product and it gave me knowledge that if a
company’s product is good then it do not have to worry for things and competitors. Cargill
gave me understanding that for any OIL INDUSTRY company it is very necessary t h a t
f i r s t i t s h o u l d m a k e i t b a s e w o r k v e r y s t r o n g a n d t h e n i t s h o u l d
g o f o r marketing or advertisement. Cargill’s business strategy is also very good. Like my
project. Cargill is also doing the same project of expansion of new stores in Delhi and NCR
to increase its visibility and sales. It was good to have your product in most of the
because it is known saying in Hindi “JO DIKHTA HAI WO HI BIKTA HAI”
CHAPTER 10
RECOMMENDATIONS
These were the following recommendations which were given to the company.These are as
follows:-
1. Consumers scheme:
Launching consumer’s scheme could be another way of increasing sales like Dalda sale went
up because of the scheme of free bowl so similarly we can come up with other schemes like
scratch card, or a free cook-book etc.
2. Awareness:
Making the costumers aware about the harmful effects of using cheap low quality oils
and highlighting health benefits of branded oils, then consumers will definitely
ask for sweekar oils and not go for any other brand. Overall customers are having delightful
experience and the remaining can be cover being more accountable to their
grievances. In order to make people aware about the product, creative
promotional campaigns, some stalls should be conducted.
3. Product Positioning :
Starting the Advertisement for sweekar oils with much focus on its ingredients & its benefit
for a human being. This way we can capture the market of Saffola which is recommended for
heart patients.
4. Media marketing:
This includes ads on TV aired at prime time shows. Tie up with certain cookery
programmers’ and the cook shown cooking dishes with Gemini oils.TV
Commercial is the most important way to make the people aware about Cargill products.
5. Product Bundling :
To make people aware about other not so popular oil of sweekar.
We can do-
Joint bundling
– 2 products offered for one bundled price.
Leader bundling
– a leader product like Soyabean oil is offered for discount if purchased With a non leader
product.
The Company should also introduce new affordable products for lower segment group.
6. Packaging:
Packing of the product is as important as the product itself.
7. Pricing
: Organization should make sincere pricing for their core product because pricing is a very
critical and sensitive issue while launching any product or inducing more future in existing
product in such a highly competitive market.
8. Promotion:
Organization should spend more in the process of advertisements, promotion, campaign and
they also have to strengthen their channels of communication with customer needs. The
customers are still not aware of the range of products, so the company must go for heavy
promotion schemes.
9. Relationship Building:
Company should see to it that sales men are paying frequent visits at the modern trade
outlets. They should try to meet the requirement of the customers and the promoter must try
to build a healthy relationship with them.
10. Channel of Distribution:
The company should improve their channel of distribution, so that the problem or the
question of availability does not arise.
CHAPTER 11
BIBLIOGRAPHY
Websites referred:
www.google.com
www.cargill.com
www.ghallabhansali.com
www.bestindiansites.com
www.fundoodata.com
www.wikipedia.com
www.naukrihub.com
www.chillibreeze.com
www.financialexpress.com
www.hemoline.com
Books referred :
Magazines: frontline, outlook, business world
CHAPTER 12
ANNEXURE 1
This is a summary of certain outlets targeted by me before the actual launch of
the project in East and South Delhi. Before the actual launch of the project, I
carried out a survey to find out how much of the oil like Fortune, saffola,
sundrop, etc are sold in comparison to our own brand. So that we can come to
know what characteristics in the product are we lacking and therefore the
product can be launched accordingly.
Date:1ST MAY 2012 Name of Summer Trainee/SR: VINOD KUMAR MALBeat Name: RATIYA MARG Areas Covered: RATIYA MARG
Shop Name includes name of shop &
landmark/adderss
SAFFOLA SUNDROPFORTUNE(RV
O) NF(RVO)
Visibilit
y
Weekly Weekly Weekly WeeklySale Stock Sale Stock Sale Stock Sale Stock
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
SARASWATI DRY FRUITS (G-8/2 SHOP NO.20) 2 1 1 2 N
RAHEES MASALA (G-8/2 SHOP NO.23) 3 2 3 1 N
LALIT STORE (SHOP NO.25 RATIYA MARG) 3 1
10 3 1 1 I
BALAJI STORE (SHOP NO.36 RATIYA MARG) 1 1 1 5 2 NDOLY GENERAL STORE
(D-1154 RATIYA MARG) 1 2 1 NAJAY GNRL MARG
(SHOP NO.4 RATIYA MARG) 5 3 N
VINOD STORE (D-1134 RATIYA MARG) 2 1 N
RADHASWAMI STORE(SHOP NO.48
RATIYA MRG) 1 2 4 2 2 3 IRAKESH STORE (D-84
RATIYA MARG) 1 1 2 1 NGUPTA DAIRY(SHOP NO.2 RATIYA MARG) 2 1 NNAMAN PROVISION STORE(G-8A/5 RTIYA
MRG) 1 1 NKRISHNA GUPTA GNRL STORE(G8A/10 RTYA
MRG 1 1 2 1 NGOYAL STORE (D-32
RATIYA MARG) 3 2 2 3 6 8 IAGGARWAL STORE (D-
31 RATIYA MARG) 3 1 2 1 2 NGARG STORE (G-11/1
RATIYA MARG) 1 1 2 1 NSHARMA
STORE(G-12/1 RTIYA MARG) 1 1 N
GUPTA G.STORE(G-
12/36A RTIYA MRG) 1 N
ANIL STORE (H-16/190 RATIYA
MARG 5 3 NVANDANA JAIN
STORE(H-16 RATIYA MARG) 5 1 2 2 1 N
Date:8nd MAY 2012 Name of Summer Trainee/SR: VINOD KUMAR MALBeat Name: AAYA NAGAR Areas Covered: MAIN ROAD AAYA NAGAR
Shop Name includes name of shop &
landmark/adderss
SAFFOLA SUNDROPFORTUNE(RV
O) NF(RVO)
Visibility
Weekly Weekly Weekly WeeklySale Stock Sale Stock Sale Stock Sale Stock
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
1 ltr
5 ltr
SINGHAL STORE (MAIN ROAD AAYA NAGAR) 2 1 N
KRISHNA STORE (MAIN ROAD AAYA NAGAR) 1 1 1 1 IAPNA STORE (MAIN ROAD AAYA NAGAR) 4 3 2 IJAIN STORE (MAIN
ROAD AAYA NAGAR) 6 5 4 1 2 IBANSAL STORE (MAIN ROAD AAYA NAGAR) 1 1 1 5 3 N
SHRI RAM STORE (MAIN ROAD AAYA
NAGAR) 1 1 1 NANNAPURNA STORE (MAIN ROAD AAYA
NAGAR) 1 1 1 1 2 1 ITIWARI STORE (MAIN ROAD AAYA NAGAR) 2 1 2 NPOOJA STORE (MAIN ROAD AAYA NAGAR) 2 1 NSUNIL STORE (MAIN ROAD AAYA NAGAR) 3 1 3 2 2 NNEGI STORE (MAIN
ROAD AAYA NAGAR) 1 3 1 2 2 1 5 N
AGGARWAL STORE (MAIN ROAD AAYA
NAGAR) 2 2 1 1 NGOYAL STORE (MAIN ROAD AAYA NAGAR) 1 4 1 3 2 2 I
MOHAN STORE (MAIN ROAD AAYA NAGAR) 1 1 N
KRISHNA STORE (MAIN ROAD AAYA NAGAR) 1 1 1 1 N
YADAV STORE (MAIN ROAD AAYA
NAGAR) 1 1 1 NM.D.STORE (MAIN
ROAD AAYA NAGAR) 1 1 4 2 2 1 I
GUPTA STORE (MAIN ROAD AAYA
NAGAR)SUKHVEER STORE
(MAIN ROAD AAYA NAGAR)
ANNEXURE 2
This is a sample beat list prepared by me for data base collectionthis was prepared after the launch of the product SWEEKAR so as to find out how many stores have received the product and if yes then were they paid for the display or not. Quantity of stock given to them. And if not then what were the reasons for not taking the product.
Name of Shop
Visibility Stock of Sweekar
Display of Sweekar
Special Feedback for each shop
Present
Absent
Stock Given
Off Take(ltr)
Reason for No Stock Present
Absent
Paid(P)
Unpaid(UP)