Final Report of ABCL

69
1 ABCL AN INDEPTH STUDY ON MARKET SHARE AND SALES STRUCTURE OF GINNI REFINED OIL

Transcript of Final Report of ABCL

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ABCLAN INDEPTH STUDY ON MARKET SHARE

ANDSALES STRUCTURE OF GINNI REFINED OIL

AN INDEPTH STUDY ON MARKET SHARE

ANDSALES STRUCTURE OF GINNI REFINED OIL

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AMRIT BANASPATI COMPANY LIMITED

RAJPURA

SUBMITTED BY :

KAPIL SHARMA

SECTION: SB-1

ID No. (D0709SS10541)

DURATION OF THE PROJECT (1st April to 31st May)

THE INDIAN INSTITUTE OF PLANNING & MANAGEMENTNEW DELHI

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ACKNOWLEDGEMENT

I would like to convey my sincere thanks to “AMRIT BANASPATI COMPANY LIMITED.” for providing me an opportunity to work on this project.

The project would not have been completed without the mention of those, who have spared there valuable time and shared experience in making this project successful

A special thanks Mr. Parshant Mohan in particular for assigning me this topic and encouraging me to write in the first place. I owe much to Mr. Parshant Mohan for his helpful comments. I thank him for his unending support and encouragement and cooperation without which it would have been difficult for me to complete my project endeavor.

I am indebted to all those who have been helpful throughout the process of writing this report but as the cliché goes, I am solely responsible for any remaining errors of fact and judgement.

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EXECUTIVE SUMMARY

This project was undertaken to know about the complete Sales Structure and to know the Market Share of GINNI Refined oils with its competitors.The methodology used to complete project was personal interview of around 120 retailers through a structured questionnaire. Along with this I even gathered data from Company’s website and also went through the annual report of the company to know the sales volume and operating margins that they have. I also collected data from company’s personnel, to study the channel and sales structure. ABCL (Amrit Banaspati Company Limited) has a very different sales structure which has been discussed in the following pages. In this project I went through all the details of channel structure & also I tried to know the market share of GINNI with its competitors.All the demands of consumer are taken care by Company’s Depot, Dealers and Retailers. The Company allows a 4% profit margin to their dealers/distributors. They also promote their goods through various promotional activities.ABC has a safety stock plans which never allow a company to be in shortfall stage of any product.The company in advance, keeps the blank cheques from the dealers/distributors and asks for DD from the new joining in the structure. They never allow any credit facility to any of the channel members. The payment depends upon the transportation time of the order. The moment the delivery of order is made the advance cheques are filled up with the required amount and are deposited in the bank for clearance. DD are also been taken from such dealers/distributor whose cheque gets bounce or the dealer’s economic condition is not good as a penalty or safety reasons.Company takes a great care in choosing its channel members. It has a set standard and criteria for selecting its cannel members. Every channel member has to follow set of norms which are the conduct guidelines for these channel members. They have to strictly stay with these norms and any violence leads to blacklisting of the distributor. The channel members are thus the most efficient persons who maintain a fine communication link between the company and the end channel members. They from time to time keeps both the side informing about the latest happenings and thus always support the scope of improvement on either side.

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After under going through this project I also came to know, more than 50 lakhs tones of oil seeds are being imported in INDIA. In INDIA the production of oil seeds is not up to the demand. So INDIA per year imports more than 50 lakhs of tones of oil seeds to sufficient the consumer’s demand.Being such an important part of sales structure the importance of distributor is still neglected. The kind of treatment offered to the distributor from company and retailer both is not appropriate. The company where neglect their distributor’s welfare by making strict norms and not providing credit facility to the distributor the retailers on other hand treats the sales person in an inhuman and unjust way. Thus it is a matter of consideration for both the company and retailers and duty also to improve upon their conduct in this regard. With such an efficient sales structure, company has done well in the recent past. With a huge turnover the company’s success and growth has always been favored. The company is the ruler of its field with a maximum market share in its large product range. Company no doubt is the best company in terms of vast product range and services to the customer. But the incentives which are being offered to their distributors are less in comparison to the type of services which they are offering to the company and its customer. So if company can revise its incentive policy then this will certainly be a boosting factor for the distributor which will ultimately prove beneficial for the company with respect to its increase sales and turnover.Company can also increase its promotion programmes for diversified product range so that many of its brand which still do not have a market monopoly can gain such status and take the company to best of its time which it has never seen before. By doing this they can improve their market share and can work upon it.

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INDEX

Executive Summary

Acknowledgement

1. Research Methodology (7)2. Company’s profile (9)3. Product Range (19)4. Findings (23)5. Analysis of the Questionnaire (30)6. Conclusion (41)7. Recommendation (42)8. Bibliography (43)9. Annexure (44)

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RESEARCH AND METHODOLOGY

Primary source

The Data was collected from

Name Designation

1. Mr. Prashant Mohan Marketing Manager Rajpura (Punjab)Phone No. +919316677315

E – Mail ID [email protected]

2. Mr. Janak Raj Lekhi Territory Sales Officer Rohtak (Haryana)

Phone No. +919355613464 +919996206030

Secondary Source

Company Web site

All the minor findings are from the company website only. The company profile as well as the product range is being captured from www.amritbanaspati.com

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DATA COLLECTION TOOLS

1. STRUCTURED QUESTIONNAIRE

Under this collection tool I prepared a questionnaire to study the complete sales pattern and market share being captured by of the company. I had questionnaires for the Retailers and one for the company personnel. These questions were put in front of the Retailers and then there views were taken. They were then asked for any recommendation for any of the following brand mentioned. Whole views were taken and then analyzed.

2. PERSONAL INTERVIEW

Under this collection tool I even asked some of the subject related questions which were not mentioned in the questionnaire but were important from information point of view at different occasions from the Retailers and whole seller as well as the company personnel.

3. TELEPHONIC CONVERSATION WITH COMPANY PERSONNEL

At various instances some data were collected through telephonic conversation from company personnel. These were very small but relevant including the total cost invested in the different fronts of sales and many other such data.

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COMPANY’S PROFILE

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AMRIT BANASPATI COMPANY LIMTED

The story of AMRIT BANASPATI CO. LTD can be best described as an enterprise

that has evolved from its humble beginning to a multidimensional group. Learning,

adapting and growing steadily. Imbibing new technologies and exploring new

horizons. It is an enterprise that has gone beyond its boundaries to meet its

commitment towards the community and the environment at large. It is the group that

has lived upto its name –Amrit, Symbolizing purity

PURPOSE OF PURITY, ACTION AND ACHIEVEMANT

It all began with the establishment of AMRIT BANASPATI CO.LTD. in the year

1940, to manufacture hydrogenated vegetable oils, more commonly known as

Vanaspati ghee. The first unit was commissioned in 1941 at Ghaziabad near Delhi.

ABC is today one of the largest manufacturer of edible oil in the country. GAGAN is

the largest selling brand and names like GINNI and MERRIGOLD are virtually

household names in many parts of the country.

The main companies of AMRIT GROUP are:-

1. AMRIT BANASPATI CO. LTD., RAJPURA.

2. AMRIT PAPERS LTD., SAILA KHURD.

AMRIT GROUP conducts its business in a way:Innovatively, Professionally and Aggressively.

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AMRIT BANASPATI COMPANY LIMITED

This unit of the company was put up in the year 1969-70 with a manufacturing

capacity of 100 MT per day of Vanaspati. Later on, in the year 1982-83 capacity was

increased to 125 MT per day. There after in the year 1985-86 a separate facility to

produce Refined Oils was set up with a capacity of 60 MT per day .Now this unit is

manufacturing around 250 MT of Vanaspati per day mainly in small packs under the

name of GAGAN, which is well known and accepted brand in northern India in

refined oils the company is producing a 100 MT per day. Today this unit has installed

capacity of 11,000 MT per month as compared to mere 3000 MT per month in its first

year of operations.

There are 6 kinds of refined oils being produced to service every need & segment of

market.

1. GINNI REFINED GROUNDNUT OIL.

2. GINNI REFINED COTTONSEED OIL.

3. GINNI GOLD REFINED SUNFLOWER OIL.

5. GINNI REFINED RICEBRAN OIL.

6. GINNI REFINED SOYABEAN OIL

The company has introduced another product “GAGAN KACHI GHANI. &

MERRIGOLD TABLE MARGARINE to suit today lifestyle & need. Since its

introduction this product is fast receiving acceptance with the consumer. Other products

in the company’s basket include Bakery Shortening named AMRIT, AERATED and

GOLDEN ARROW.

The company has its own R&D facility where the company keeps improving the

processes needed for oil processing and also the R&D work is continuing to develop new

value added products in the field of oils & fats. Its market penetration is best defined as

unparalleled in the industry.

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Besides these, they are also making four type of bakery shortening under “AMRIT”

brand name and our exclusive product Table Margarine “MERRIGOLD”. GAGAN is the

prime brand in north India. When it comes to refined oils, GINNI is well known in the

country.

With consistent up-gradation of technology and introduction of new products from time

to time, ABC has made major in-roads into distribution network. Today Company has 32

depots and 1200 dealers in the country, covering more than one lakh retailers, which

extends to over 800 cities and generate a turnover of approximately 600 crores.

The guiding philosophy of ABC is uniquely different. And the difference often lies beyond what meets the eye.

In a work culture that stimulates freedom of thought and expression among all its employees.

In an environment that singularly rewards initiative and creativity.

It lies in the spirit of excellence that mark our products, our achievements and our status as leaders in the Industry.

Most of all, it is reflected in the way in which ABC conducts its business innovatively, professionally and ethically.

ABC isn't just a name.

Nor just another Rs.430 crores mass-production, company strives to satisfy the needs of its customers and associates.

It is an enterprise that has gone beyond its boundaries to meet its commitment towards the community and the environment at large.

ABC today has established operations in two fields, both of which are promoting the agro economy of India immensely:

- Edible Oils and Fats. - Writing and Printing Paper.

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ABC_________________________________________________________

Edible Oils & Fats

The story of ABC can best be described as an enterprise that has evolved from humble beginnings to a multi-dimensional group. Learning, adapting and growing steadily. Imbibing new technologies and exploring new horizons. It all began with the establishment of Amrit Banaspati Company Limited in the year 1940, to manufacture hydrogenated vegetable oils, more commonly known as vanaspati, and refined oils later on. The first unit was commissioned in 1941 at Ghaziabad, near Delhi. A capacity of 25 MT per day was later enhanced to 125 MT. Another unit at Rajpura, near Chandigarh was commissioned in 1969 with a capacity of 100 MT per day which has grown to 200 MT per day. A third plant was set up at Abohar, an industrially backward area in a border district of Punjab in the year 1995, to produce 40 MT per day, which has now tripled to 120 MT per day. The operations at Abohar are being conducted in a group company, namely Amrit Enterprises Limited. A string of circumstances led to the unavailability and closure of the Ghaziabad operations in the year 1998. Now the edible oil operations of the ABC Group are concentrated in Punjab at Rajpura and Abohar. Today the two units cumulatively produce around 80000 MT of vanaspati annually under the brand names 'Gagan' and 'Sunheri Teer'. 'Gagan' is the largest selling brand in the Country. The group also has a presence to reckon with in refined oils, producing nearly 35000 MT annually. The range of refined oils includes Cottonseed Oil, Sunflower Oil and Groundnut Oil under the umbrella brand of 'Ginni', Soyabean Oil and Rice Bran Oil under the brand name of 'Gaurav' and Mustard Oil bearing the brand name of 'Bansari'.

In the year 1993, 'Merrigold' table margarine was launched. It was the result of R & D efforts to bring out innovative products. The other products In ABC’s business fold include Bakery Shortening and Cooking margarine named ‘Amrit’ and ‘Golden Arrow’.

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ABC_________________________________________________________

Along with constant up-gradation of technology and introduction of new products, ABC has made major inroads into new areas and new markets. The distribution network has 1200 dealers served through 34 depots, which extends to over 600 cities in India and generates a turnover of Rs.350 crores annually. Its market penetration is best defined as unparalleled in the industry.

Paper

ABC Paper was established in 1980 at Saila Khurd, a totally backward area of Punjab, to manufacture writing and printing paper. Over a period of 20 years this Division has grown into a profitable enterprise and is one of the very few medium scale factories in India which has been able to establish itself against large scale mills because of its relentless pursuit in maintaining the quality of its products. ABC Paper has been able to use agricultural and forest residues (wheat straw, rice straw and sarkanda grass), in a large percentage, which are both inexpensive and abundant, for the manufacture of paper. This not only saves on costs but conserves a diminishing natural resource - wood.

The paper plant which started with a capacity of 30 MT of paper per day has now been upgraded to a capacity of 100 MT per day, and generates a turnover of Rs.80 crores annually.

Company’s continuous efforts towards cost cutting in its operations, has enabled ABC Paper to compete aggressively and successfully with much larger mills and often with competitively priced imports as well. Unlike its competitors, a unique feature is ABC Paper's vast and efficient dealer network spread all over the country.

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ABC________________________________________________________________________

Research & Development

ABC has been involved in developing new process technologies for its products. Some of the in-house breakthrough technologies developed by ABC are in the fields of processing various minor vegetable oils (like Mahua, Rice Bran, Palm) for edible use, and the use of non-conventional agricultural and forest residues for making paper. Margarine also has been developed through in-house R & D only.

Affiliates

ABC has promoted a venture in the field of food processing, namely Amrit Foods having its production facility at Ghaziabad, U. P., which produces dairy milk, flavoured milk, and milk formulaes for various end usages. This unit is also the sole supplier to McDonalds India for all their milk product requirements.

Future Prospects

ABC with its developed infrastructure, strong business commitment and vast market network already in place is poised for further growth and expansion and a great future.

The Promoters

Naresh K Bajaj ChairmanAshwini K BajajJt Managing DirectorJagesh K Khaitan Jt Managing DirectorPavan Khaitan Constituted Attorney

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ABC_________________________________________________________

Corporate Office

Edible Oils & Fats

Office & Works Amrit Banaspati Company LimitedChandigarh RoadRajpura (Punjab)Tel: (01762) 232890 – 95

Office & Works Amrit Enterprises LimitedSitto Gunno RoadVillage RaipuraAbohar (Punjab)Tel: (01634) 29720, 29820

Paper

Office ABC PaperSCO 18-19 (First Floor)Sector 8-C, Madhya MargChandigarh 160009Tel: (0172) 543166, 548140

Works ABC PaperSaila Khurd 144529District HoshiarpurPunjabTel: (01884) 230241, 230242

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MISSION STATEMENT OF COMPANYTo produce and sell goods and services to achieve the highest return on sales

in the industry to the total satisfaction to

Customers, Employees and Shareholders in that order.

QUALITYIt is to the credit of good quality control system and efficient R&D department that ABC

RAJPURA has been honored and awarded. “The American International Quality

Certificate” and Gold Medal to the management of ABC RAJPURA, a Transworld and

Tradefare Selection award as a token of recognition for their outstanding performance in

the manufacture of GAGAN Vanaspati. The RAJPURA unit has also received the

prestigious ISO 9001:2000 CERTIFICATION and MONDE SELECTION MEDAL of

Brussels.

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SALES HIERARCHY

Around 32 in the country

Above 1200 dealers

More than 1 lakh

COMPANYCOMPANY

DEPOTSDEPOTS

WHOLESELLER/DEALER

WHOLESELLER/DEALER

RETAILERSRETAILERS

CUSTOMERCUSTOMER

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PRODUCT RANGE

GINNI REFINED GROUNDNUT OIL

Pack Size : 15 liter tin/poly pack, 5 liter, 2 liter poly

Pack and 1 liter pouch.

Benefits-

It can be used for a wide range of food preparation

It is suitable for deep frying, spray or wet roasting.

It is recommended for people on a low calorie diet as it is low on Saturated Fatty

acids.

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GINNI REFINED SOYABEAN OIL

Pack Size. :15 liter tin/poly pack, 5liter, 2 liter poly pack

1 liter pouch

GINNI GOLD SUNFLOWER OIL

Pack sizes :15 liter tin/poly pack, 5 liter

and 1 liter pouch.

Benefits:

It is a light and nutritious oil.

It is good for shallow frying. and salad dresssing.

It is low in saturate.

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It is the best oil for the health of people of all ages.

GINNI REFINED COTTONSEED OIL

Pack sizes : 15 liter tin/polypack, 5 liter,

2 liter poly pack, 1 liter pouch

Benefits:

1. It is rich in Polyunsaturated Fatty Acids, which makes it healthy oil.

2. It being light and pure is high on flavor stability.

3. It is economical as compared to most of the other refined oils.

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OTHER PRODUCT RANGE

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FINDINGS

SALES: (Planning & Monitoring System)

Company follows very different type of sales structure. Sales target are being given to the Depots. If they achieve their targets they are rewarded by incentives. They are rewarded even they achieve 80% of total targets. Company has different steps for incentives. These steps are followed while rewarding incentives to the Depots.

1. Monthly Sales Targets For ABCL’s (Amrit Banaspati Company Limited) core business of VRO’s consumer packs have been set and effective April 99 have become applicable uniformly across distribution channel i.e. both Dealer and ABCL’s field force and for inducing/motivating them towards achieve these, separate incentive schemes, for Dealer & field force, based on monthly sales have become operational to achieve consistent monthly sales of refined oils. But these will not assure uniform pack wise day to day sale nor will it lead to any specific sales pattern.

2. Product & Pack wise Daily Sales Expectation

Product & pack wise daily sales expectation is needed to ensure NO LOSS of SALES (due to stock-outs) with

(i) Minimum inventory holding of finished goods(ii) Least cost dispatch scheduling(iii) Optimum production scheduling(iv) No over-stocking or shortages of packing

and this information as The Day’s Sales Plan ought to be available at least before and for reasonable forecasting accuracy can at the most made 5 to 8 days ahead .

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For any sudden & significant change in demand at one or more locations for one or more specific product packs, it takes ABCL’s with existing facilities, system & practices at least 3 days to respond with correction and hence the planning span must be 3 days or more and even with best of forecasting tools judgments, it should not exceeds 8 days and hence, to start with, they propose 5 planning periods of 6 days each in month (Namely 1 – 6, 7 – 12, 13 -18, 19 – 24, 25 – last day).The plan for effective & efficient operations is made for each depot, the point of primary sale and for each primary customer, dealer by breaking-up the monthly sales target for the dealer into product-pack wise plan for each of the 5 periods. After under going through this project I also came to know, more than 50 lakhs tones of oil seeds are being imported in INDIA. In INDIA the production of seeds is not up to the demand. So INDIA per year imports more than 50 lakhs of tones of oil seeds to sufficient the consumer’s demand.

Incentive Scheme

Incentives are given by following these steps:

Target achieved (in percentage) Incentive Per liter

80% -99 20 paisa 99% - 100% 30 paisa

100% - 110% 40 paisa

More Than 110% 60 paisa

These steps are followed by company while giving any incentives to the follower.

These incentives are given on the excessive sales of the each follower e.g.If dealer achieves 150% of the targets, he will be rewarded by incentives, but following steps are considered before giving incentives,

Up to 99% achieved targets he will be rewarded 20 paisa per liter refined oil sold. More than 99% but up to100% of the target he will be rewarded 30paisa per liter refined oil sold, more than 100% but less than 110% of the sales target, he will be rewarded40 paisa per liter sold. More than 110% of the refined oil sold, he will be rewarded 60 paisa per liter.

Distribution Channel

Company has wide range of distribution channel where all the activities are being operated. Produced refined oils are sent to different Depots which are located in different

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states. Company has around 32 depots in the whole country. After that the refined oil are sent to the dealer of refined oils whatever the demand is from the dealer. From Dealers refined oils are sent to the Retailers. Company has around 1200 dealers in the country.

Inventory Size

Company always maintains a safety stock size of 7 to 10 days in their godowns in order to meet their distributors demand. This is even done in order to meet any unfavorable conditions including strikes, non availability of raw materials, or any disturbance in their production due to technological or other problems. For any shortage they even have their buffer stocks also. The requirement for the month is generated in advance with the help of their database since they maintain a track record of their distributor’s requirement which help them to decide upon their production for the month.

At Distributor level:

Company asks its distributor to maintain a stock size of at least 7 days in order to ensure availability of product of products to their end channel members. At the time of any shortage they can place an order on telephone otherwise orders are being placed on their website.

Placement of Order

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Such an order placement is called primary placement of order by the company. It is based on the daily sales. Whole of the process is computerized. The company gets order from its various distributors on its websites and also receives order on phone calls. At the end of the day all the orders are being jotted at one place. After this the bills are being produced and the goods are being released from the stores based on the bill details. These are then being loaded on to different vehicles and are being transported to different places as mentioned in the bills.

Financial Terms

For the payments to the company there are following two modes of payment

1. Advance Demand drafts:

Such a mode of payment is applied under following condition When there is any new appointment then in order to build trust they ensure

payments through advance demand drafts for coming three months.

If company feels that dealer or distributor’s financial position is loose then company asks them to make advance payments through demand drafts.

If dealer or distributor’s cheque bounces than they are ask to make payments through demand drafts for the next three months.

2. Cheque Payments:

When the company has built up trust on its dealers or distributors then the company accepts the payments in cheques also.

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For this purposes the dealers or distributors are asked to submit three blank signed cheques in advance with the company as a security. As soon as the delivery is made to the distributor, the cheque is deposited in the bank for clearance and so it becomes the moral responsibility of the distributors to make sure that the cheque does not bounce. Billing is only done to those distributors who have minimum 3 cheques in advance deposited to the company. Company has no provision of credit payments. All the payments are either being made in advance or as soon as the goods are being delivered to the dealers or distributors. No credit time is being given to the distributor for the payments as such they get an advance payments even from weak dealers or distributors.

Transportation

All the expenses of transportation, from company to depots and depots to dealers are met by the company. Company has 1200 dealers in the country; those dealers are covered by 32 depots. All the demand from the customers and from retailers is fulfilled by the dealers.

Promotional Activities

Company from time to time takes out various promotional schemes and activities in order to appreciate their channel members. The promotional schemes include special incentives to those channel members who complete their sales targets being given by the company from time to time. The company even organizes Chairman meeting for the channel members where they get an opportunity to meet the chairman and have conversation so that they can feel special.

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The company even introduced a promotional programme by organizing a trip to Bangkok, Singapore, Hongkong for those channel members who fulfill their target for sales. The Company even organizes a program to reward to maximum seller of the refined oils. Company gives prizes on the performance. According to the final results of the dealers, company rank the all dealers and prizes are given to 1st, 2nd and 3rd rank holder. The company also has a draw scheme. Under the draw scheme the entire dealer’s name put on the paper and a chit is prepared containing name of all the dealers. After that their names are randomly selected and then prizes are given to dealers whose name comes into that chit. This draw scheme is basically provide Motivation to those dealers who were not able to achieve the maximum sales target. In this scheme all the top three rank holders name are also written in the lucky draw scheme. They also have opportunity to win the lucky draw prizes. They have equally chance to win the lucky draw prizes.

Market Research

Company from time to time conducts marketing research to gather information on different aspects as being required by the company.

Depending up on the type of requirement the company conducts market research with respect to the

Customers

For the information regarding new product launch or time to time changes in the different product range hold by the company.

Channel Members

For the information regarding various policies being hold by the company for its sales and even to discuss out the changes in the sales pattern with regard to some new policy if adopted by the company

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General Market Survey

For the information regarding company’s and its different product ranges’ performance which is necessary for reviewing company’s performance from time to time.

For collecting these data they make use of their own resources as well as they take help of some organization for these marketing research. For this purpose they spent lakhs of rupees every year. Telling exact figures in this regard would be difficult as the expenses vary from time to time depending upon what type of information has to be gathered and sources to be applied.

Expectation

Company expect from all its dealers and wholeseller that whatever sales target and infrastructure is provided to them by the company they would be fulfilling it with full honesty and would always lay their helping hand in company’s success as company rest on them.

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Q.1 NAME OF THE BRAND OF REFINED OILS, WHICH YOU KEEP IN STOCK

This question was asked to know about the type of brand of refined oils which retailers keep in their stock. (In percentage)

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According, to the market research, all the retailers keep the following brand of refined oils in their stock.

1. Fortune2. Ginni3. Nature Fresh

99% of retailers keep Nutrela refined oil, 98% of the retailers keep Gemini refined oil, 83% of retailers keep Saffola refined oil and 67 % of retailers keep other brand of refined oils (gaurav, raag, avsar, refined oils etc.).

Q. 2 WHAT DIFFERENT PACKS ARE AVAILABLE OF THE FOLLOWING BRANDS?

This question was asked to know the various packs of refined oils which retailers keep in the stock.

For 1 liter packs (in percentage)

According to market research, all retailers keep 1 liter pack of following brand of refined oils.

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1. Fortune2. Ginni3. Gemini4. Nutrela5. Nature Fresh6. Saffola

And 84% of retailers keep 1 liter pack of other brand of refined oils.

For 2 liter pack (in percentage)

According to market research, all the retailers keep 2 liter packs of following brand of refined oils.

i. Fortumeii. Ginni

iii. Geminiiv. Nature Fresh

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But 98% of retailers keep 2 liter pack of nutrela refined oil, 85% of retailers keep 2 liter pack of saffola refined oil and 60% of retailers keep pack of 2 liter of other brand of refined oil.

For 5 liter pack (in percentage)

According to market research, all the retailers keep 5 liter packs of following brand of refined oils.

1. Fortume2. Ginni

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3. Nutrela4. Nature Fresh

But 92% of retailers keep 5 liter pack of Gemini refined oil, 89% of retailers keep 5 liter pack of saffola refined oil and 70% of retailers keep 5 liter pack of other brand of refined oil.

For 15 liter pack (in percentage)

According to market research, all the retailers’ keep15 liter packs of following brand of refined oils.

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1. Fortume2. Ginni3. Nutrela4. Nature Fresh

But 93% of retailers keep 15 liter packs of Gemini refined oil, no retailers keep 15 liter pack of saffola refined oil and 84% of retailers keep 15 liter pack of other brand of refined oil.

Q. 3 WHICH OF THE FOLLOWING PACK OF REFINED OILS ARE MOSTLY SOLD?

This question was asked to know about the packing wise sales of the Refined Oil of all the Retailers.

S.No. Name of Refined Oils

For 1 liter pack

For 2 liter pack

For 5 liter pack For 15 liter pack

1 Fortune 23% 21% 22% 19%

2 Ginni 18% 22% 20% 21%

3 Gemini 19% 16% 19% 16%

4 Nutrela 14% 12% 13% 17%

5 Nature Fresh 10% 13% 12% 11%

6 Saffola 7% 10% 10%

7 Others 9% 6% 4% 16%

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Total 100% 100% 100% 100%

This is the breakup of pack wise sales of all the retailers. These values have been calculated on the basis of average sale of each retailer. The analysis of this part has been discussed in the following pages.

For 1 liter pack

First row shows that, out of 100 packs of refined oils of 1 liter, fortune refined oils contributing 23% of the total sales, Ginni refined oils contributing around 18% of the total sales, Gemini refined oils contributing 19% of total sales, Nutrela refined oils contributing 14% of the total sales, Nature Fresh refined oils contributing 10% of the total sales, Saffola refined oils contributing 7% of the total sales, others brands of refined oils (Gaurav, Avsar, Raag etc.) contributing 9% of the total sales.

For 2 liter pack

Second row shows that, out of 100 packs of refined oils, Fortune refined oils contributing 19% of the total sales, Ginni refined oils contributing 24% of the total sales, Gemini refined oils contributing 16% of the total sales, Nutrela refined oils contributing 12% of the total sales, Nature Fresh refined oils contributing 13% of the total sales, Saffola refined oils contributing 10% of the total sales, Others brand of refined oils contributing 6% of the total sales.

For 5 liter pack

Third row shows that, out of 100 packs of refined oils, Fortune refined oils contributing 22% of the total sales, Ginni refined oils contributing 20% of the total sales, Gemini refined oils contributing 19% of the total sales, Nutrela refined oils contributing 13% of the total sales, Nature Fresh refined oils contributing 12% of the total sales, Saffola refined oils contributing 10% of the total sales, Others brand of refined oils contributing 4% of the total sales.

For 15 liters pack

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Fourth row shows that, out of 100 packs of refined oils, Fortune refined oils contributing 19% of the total sales, Ginni refined oils contributing 23% of the total sales, Gemini refined oils contributing 15% of the total sales, Nutrela refined oils contributing 17% of the total sales, Nature Fresh refined oils contributing 10% of the total sales, Others brand of refined oils contributing 16% of the total sales. Saffola has no contribution in 15 liters pack of refined oil. According to the market research, no retailer keeps 15 liter pack of refined oil in their stock. According to them no body purchases that much of refined oil of Saffola

Q. 4 WHAT IS YOUR AVERAGE SALES PER MONTH? (in liter percentage)

This question was asked to know about the maximum sales of the retailers on monthly basis.

Less than Between More than 100 liters 100-500 liters 500 liters

1. FORTUNE 100%2. GINNI 100%3. GEMINI 2% 98% 4. NUTRELA 8% 92%5. NATURE FRESH 100% 6. SAFFOLA 31% 45% 24% 7. OTHERS 59% 41%

According to the market research, Fortune refined oil is sold more than 500 liters by all the retailers, same in the case of Ginni & Nature Fresh refined oil. Both are sold more than 500 liters by all the retailers.

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But in the case of Gemini refined oil there were 98% retailers, who were selling more than 500 liters and there were 2% retailers, who were selling less than 500 liters but more than 100 liters. In the case of Nutrela refined oil there were 92% retailers, who were selling more than 500 liters, there were 8% retailers, who were selling less than 500 liters but more than 100 liters. In the case of Saffola there were 31% retailers who were selling less than 100 liters and also there were 45% retailers, who were selling more than 100 liters but less than 500 liters and there were 24% retailers, who were selling more than 500 liters. There were 59% retailers, who were selling between 100 to 500 liters of Other brand of refined oil, and there were 41% retailers who were selling more than 500 liters.

Q. 5 DO YOU RECOMMEND ANY BRAND TO CUSTOMERS?

(a) YES (78%)

(b) NO (22%)

This question was asked to know about, recommendation of retailers to the customer. This question was asked to know, do they recommend any brand to customer and if they recommend to customer any brand, on what basis they recommend for a particular brand to customers. This question was asked because some times customer seeks recommendation for a particular brand of refined oil, which brand of refined oil should be used? And also customer wants know about the brand, which are cheep and the best for them. Recommendation differs from customer to customer. Then they were asked, on what basis they recommend any particular brand of refined oil to customer. Because some customers seeks for brand for the quality and some customer seeks recommendation for the availability and for the prices of the refined oils. Main emphasis of asking this question was what a retailer thinks about the particular brand. What perception he is having over a particular brand. Then to know about their perception of the brand the following steps were taken,

IF YES, WHAT BRAND DO YOU RECOMMEND TO CUSOMERS?

Basis

(i) FORTUNE (b) & (c)

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(ii) GINNI (a) & (b) & (c) (iii) GEMINI (a) & (c) (iv) NUTRELA (c) & (d)(v) NATURE FRESH (a) & (b)(vi) SAFFOLA (b) & (c) & (e) (vii) OTHERS ……………….. (a)

Basis

(a) PRICE(b) QUALITY(c) AVAILABILITY(d) PACKAGING(e) HEALTH(f) OTHERS ………………..

Continued………

According to the market research, the brands of refined oil which they normally recommend to customers are Fortune & Ginni & Nature Fresh. Other brand that they recommend to customer based on the different parameter like Nutrela is recommended because of the availability and the packing style of the brand. The basic reason for recommending Saffola is health. Saffola is available at every place where you want it and it is also a best quality product if we talk about the health. Gemini is recommended because of the price and availability. Other brand is normally recommended for the pricing and other local brand also has huge sale in the market. These brands are generally recommended on the party occasion or any event.

`

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OVERALL MARKET SHARE OF ALL THE COMPANIES

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Market share of companies has been calculated on the basis of overall performance of the companies.

CONCLUSION

After under going this project & also sales behavior, it was concluded that company maintains strict sales policy while choosing its channel member that’s why company is able to achieve a market share around 17%-18% of the total market. This market share has been calculated on the basis of the total performance of the company. According to market research information I got a reasonable performance from Ginni refined oil. Which is around 17%-18%, and this percentage can be considered as a good market share. There are so many players of refined oils out there in the market, which has not been discussed in this market research. But they have captured market very well because of the availability and less pricing.

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This research discus quite more about the market performance of Ginni even if all the market players are considered in the research. But it is also seen that local players of refined oils are also measured as the biggest player of the refined oil market the local players can not be neglected. Company also keeps safety stock around 7 to 10 days into its warehouse. And company also forces to its dealer’s to keep safety stock of at least 5 – 7 days. Company also meets all the expenses of the transportation. One of the good and bad aspects of their sales structure is that they don’t provide credits to their dealers. By doing this they get to collect their revenues easily from the market. This help in knowing their total revenue and then they can even decide for proper allocation of their wealth even.

The bad part of this aspect is that it does help them in trust building which is equally important for them. Their channel members are one of the important pillars of their company’s success. So it is very much important for the company’s overall success that there should be proper trust relation among their members. So company should look forward for this aspect also. Then the norms made by the company for its distributor/dealers are also very harsh because of which many of its channel members do not want to continue. This can again be a negative side for the company. This has to be checked as it is not going to prove fruitful in long run race. No doubt with company’s present performance is up to the mark and company’s strategies, whatever they make and whatever they think upon, are working pretty well but if the company wants to be out there in the market for long time then company will have to make a balanced growth.

RECOMMENDATIONS

Undergoing company sales structure and studying company’s sales pattern, it is evident that if company has been able to achieve the most famous and preferred company by its customer than it is because of its sales pattern also. Company maintains a huge turnover because of its strict but direct sales policy. That’s why company has been able to achieve 17%-18% market share. Company has strict norms for its distributors to follow which sometimes its distributor are not able to comply with and has to leave its distributorship. Such strict norms leads to feeling of discontentment in the distributors so the company should take a serious step in order to check out the norms so that distributor can feel comfortable with.

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The margin offered to the distributors by the company is 4% on the profit which was around 7% few years back. But then company decreased it by 3%. This much profit margin as reported by the distributor/dealers is less since they have to meet several requirements to achieve the target been given by the company. So company should increase its profit margin in order to meet the distributor’s requirement. Moreover this would increase their distributor efficiency and loyalty and would result into increase sales. Best would be to make it at least 6% again. Company still lacks in providing sufficient knowledge to its customer regarding its product range. They should do rather more promotional activities so that the customer can come to know about their product range and also about the benefits that they will be getting by using this particular product. They can create more & more customers by doing these kinds of activities. They can even help people by suggesting right product to their requirement. This would again help the company to further enhance its image increasing the sales of its product. Company holds a good image in the eyes of its distributor/dealer as it has always looked for their benefits but still if the company can provide the credit facility to its dealers/distributor then it would really please the distributor and will ultimately work for the benefit of their company.

No doubt that company has maintained a complete balance between in its business. Company has been doing wonders in the past and is capable of doing even much in present and future. All they need is a quick recollection of its caliber and implementing above recommendations which would really prove to be worth for their business.

BIBLIOGRAPHY

www.google.com

www.amritbanaspati.com

Mr. Parshant Mohan

Mr. Janak Raj Lekhi

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ANNEXURE

MARKET RESEARCH ON REFINED OILS

Questionnaire for the Retailers

Q. 1 NAME OF THE BRAND OF REFINED OILS, WHICH YOU KEEP IN STOCK?

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(i) FORTUNE(ii) GINNI (iii) GEMINI(iv) NUTRELA(v) NATURE FRESH(vi) SAFFOLA(vii) OTHERS ………………..

Q. 2 WHAT ARE THE DIFFERENT PACKS AVAILABLE OF THE FOLLOWING BRAND? IN LITERS 1 2 5 15

(i) FORTUNE (ii) GINNI (iii) GEMINI(iv) NUTRELA(v) NATURE FRESH(vi) SAFFOLA(vii) OTHERS

Q. 3 WHICH OF THE FOLLOWING PACK OF REFINED OILS ARE MOSTLY SOLD? (per 100 pack) IN LITERS 1 2 5 15

(viii) FORTUNE (ix) GINNI (x) GEMINI(xi) NUTRELA(xii) NATURE FRESH(xiii) SAFFOLA(xiv) OTHERS

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Q. 4 WHAT IS YOUR AVERAGE SALES? (per month)

(i) FORTUNE(a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

(ii) GINNI

(a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

(iii) GEMINI (a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

(iv) NUTRELA

(a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

(v) NATURE FRESH (a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

(vi) SAFFOLA (a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

(vii) OTHERS ……………….. (a) > 100 liters (b) 100 – 300 liters (c) < 300 liters

Q. 5 DO YOU RECOMMEND ANY BRAND TO CUSTOMER?

(a) YES (b) NO

IF YES, WHAT BRAND DO YOU RECOMMEND TO CUSOMER?

(viii) FORTUNE(ix) GINNI (x) GEMINI(xi) NUTRELA(xii) NATURE FRESH(xiii) SAFFOLA

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(xiv) OTHERS ………………..

ON WHAT BASIS,

(g) PRICE(h) QUALITY(i) AVAILABILITY(j) PACKAGING(k) OTHERS ………………..

RECOMMENDATION (to any brand of refined oils)

(i) FORTUNE .………………………………………………………(ii) GINNI ……………………………………………………….(iii) GEMINI .………………………………………………………(iv) NUTRELLA ………………………………………………………(v) NATURE FRESH ………………………………………………………(vi) SAFFOLA ………………………………………………………(vii) OTHERS …… ……………………………………………………….

PERSON CONTACTED

NAME: ………………………………………… ADDRESS: ………………………………………….

………………………………………….

TEL. NO: …………………………………………..

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THANK YOU

Questionnaire

(Sales and Marketing department)

1. What type of sales organization structure do you possess?

2. What are the various links between you and the customer?

3. What are the various criterion/terms and conditions of selecting your channel members?

4. What is the average stock you keep?

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5. What are the various modes of transportation adopted and cost incurred in ordering stock?

6. What are the methods of measurement and frequency of appraising the channel members?

7. What are the modes by which you receive your payments

i) Advance payment ii) Payment on Delivery iii) Credit payments

8. In case you provide the credit period, what is the time limit?

i) No credit period ii) 10-15days iii) 15-30 days iv) <30 days

9. What are the margins you provide to your Channel Members?

10. How do you assign targets to your channel members and what type of targets?

11. Do you support your Channel Members by promotional activities?

a) YES b) NO

If Yes, i) Number of Promotions. ii) Timing of Promotions. iii) Quantity of Promotions.

12. What all do you expect from your channel members?

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13. Have you ever gone for market research?

a) YES b) NOIf Yes, w.r.t. whom?

Customers Channel Members

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General market survey

14. How frequently you do market research?

THANKYOU