Project Report Ashwani

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PROJECT REPORTOn

ANALYSIS OF VARIOUS BRANDS OF

SOYABEAN REFINED OIL IN THE MARKET

SUBMITTED TO CHITKARA BUSINESS SCHOOL, IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION

IN MARKETING (2006-2008)

Submitted by:

Ashwani Pahuja

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MBA - 4th Sem. Roll No. E066009

CERTIFICATE

This is to certify that research project titled Analysis of various brands ofsoybeans refined oil in the market carried out by Mr. ASHWANIPAHUJA under my guidance and supervision is an original research work.It is based upon both the primary data as well as secondary data andreferences are from published sources hence it proves authenticity of theresearch project.

This research work is original and is an unpublished report.

HARPAL SAINI

Faculty Member

CIET

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ACKNOWLEDGEMENT

The research on Analysis of various brands of soya bean refined oilin the market , was assigned to me as my major project.

I have tried my best to present this information as clearly as possible

using basic terms that I hope will comprehended by the widest

spectrum of researchers, analysts and students for further studies.

I am thankful to Mr. HARPAL SAINI , Faculty Member for his

guidance and support. Mere acknowledgement may not redeem the

debt I owe to my parents for their direct/indirect support during the

entire course of the project.

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CONTENTS

S.No Contents Page No(s)Certificate

Acknowledgement

Chapter-I

(a) Introduction to the topic

Executive Summary 5

(b) Introduction to Edible oil industry

i Edible oil market in India 6-10

ii Processing of Soya Oil 11-12iii Major Players in Soyabean oil 12-29

iv Preferable brands and price 30

V Retailers and customers want to say 31-32

vi Market strategy & marketing mix 32-41

Chapter-II 42

i Objectives 42

ii Scope and Limitations 42

iii Research Methodology 43-44Chapter-

III

Analysis of Data

and Findings

45-55

Chapter-

IV

Suggestion of Retailers &customers,

Conclusion and Recommendations

55-57

Bibliography 58

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EXECUTIVE SUMMARY

The objective of this research is to determine the customer as well as

retailers preferences regarding different soya bean brands which result in

their market share. It involves the study the consumers buying behaviorand attitudes towards a variety of attributes and factors, which help them

in decision-making.

Firstly, I took five brands of soya bean refined oils; for a comparativestudy. I got the companies broad background; their entry into thesegment, their positioning strategies of brands and other factorsaffecting the consumers buying behavior.

Later I went through the process of filling the questionnaires from 50retailers & 100 customers selling and consuming soya oil, bothretailers and customers were taken into account to make this researchmore effective. Secondary data from various sources like magazines,a journal etc has also been taken.

The findings showed that the retailers who sell various brands wantmore margin and various packages as well and customers want some

discount schemes and soya bean oil at reasonable price between 40-50,moreover they want after sale services.

But, at the end the research was limited due to small sample size,small sample area and time constraints.

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EDIBLE OIL MARKET IN INDIA

India accounts for 9.3 percent of world oilseed production. It has the worldsfourth largest edible oil economy. Yet, about 43 percent of edible oil available in

India is imported. In 1999 India ranked as the worlds largest importer of edibleoils, displacing China. The bulk of edible oil India imports under the OpenGeneral License (OGL) are RBD Palmolein of Malaysian and Indonesian origin

India has approximately 300 crude edible oil refining units. 60-70 percent of

which are small. Unlike the bigger refiners. The small ones are unable to import

huge quantities of crude either due to their low capacity or lack of financial

resources, and may be forced to close down or sell out to the bigger ones in the

foreseeable future.

A major problem is the low capacity utilization. The installed capacity of oil mills is

around 36 million tones annually, but capacity utilization is only 40 percent

solvent extraction plants show only 33 per cent capacity utilization and vegetable

oil refineries show 40 per cent.

The total import of edible oils during the period form November 1998 to October

1999 totaled 4.4 million tones valued at more than Rs. 9.000 crores. That was

against a demand supply gap of 1.4 million tones in 1998-99. Imports have

therefore deluged the market.

The import of relined palm oil was put under OGL (Open general License) in

March 1994. Other edible oils were put under OGL in April 1995 (when an item is

brought under OGL, it means that the item can be imported without seeking any

approval).

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Originally, there was no discrimination between refined and non refined edible oil

as far as import duty concerned. The duty on both was 65 percent. Duty was the

slashed to 30 percent for both, then to 20 percent in 1996 and 15 percent in then

1999-2000 budgets.

On December 30, 1999 a differential duty structure was introduced. Duty on

refined oil was fixed at 27.5 percent (25 percent plus 10 percent surcharge) while

that on crude was retained at 16.5 percent (15 percent plus 10 percent

surcharge) But only actual users (as opposed to traders) are allowed to avail of

this reduced duty on crude oil. Traders are nevertheless allowed to import crude

at the reduced duty but only to sell to actual users on a high seas basis. This

requires that the actual users fills in the import documents (and pays the reduced

duty) but leaves the importing process to the trader.

In most parts of the world, the import duty on oilseeds is lower than that on oils.

But, in India it is higher 40 percent. That is why no import of oilseeds of oil

bearing material has taken place in India. The industry wants the duty to be

lowered from the present 40 percent to 5 percent.

Edible oils prices in the Indian market have crashed due to large imports by

multinational trading houses see table.

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IMPORTANCE OF EDIBLE OILS IN THE COUNTRYS ECONOMY

Oilseeds and edible oils are two of the most sensitive essential commodities.India is one of the largest producers of oilseeds in the world and this sectoroccupies an important position in the agricultural economy and accounting for theestimated production of 25.14 million tonnes of

nine cultivated oilseeds during the year 2003-2004. India contributes about 8-9%of the world oilseeds production. Export of oil meals, oilseeds and minor oils hasincreased from 2.28, million tones in the financial years 2003-2004. In terms ofvalue, realization has gone up from Rs.2653/- crores to Rs.5447/- crores. Indiaaccounted for about 6.4% of world oil meal export.

Types of Oils commonly used in India.

India is fortunate in having a wide range of oilseeds crops grown in its

Different agro climate zones. Groundnuts, mustard/rapeseed, sesame, safflower,linseed, Niger seed/ castor are the major traditionally oilseeds. Soya been andsunflower have also assumed importance in recent years. Coconut is mostimportant amongst the plantation crops. Efforts are being made to grow oil palmin Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andamanand Nicobar Islands. Among the non-conventional oils, rice bran oil andcottonseed oil are the most important. In additional, oilseeds of tree and forestorigin, which grow mostly in tribal inhabited areas, are also a significant source ofoils. Figures pertaining to production of major cultivated oilseeds , availability ofedible oils from all domestic sources and consumption of edible oils (from

Domestic and Import sources) during the last few years are as under :-

In Lakh Tonne

Oil year (Nov-October)

Production ofoilseeds

Net availability ofedible oils from alldomestic sources

Consumption ofedible oils (fromdomestic andimport sources)

1998-1999 247.48 69.60 95.82

1999-2000 207.15 60.15 102.11

2000-2001 184.40 54.99 96.762001-2002 206.63 61.46 104.68

2002-2003 150.58 47.28 90.93

2003-2004 251.42(4th advanceEstimates)

71.09(Est.)

124.04(Est.)

2004-2005 248.42(2nd advance

73.10(Est.)

117.10(Est.)

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estimates)

Source (i) Production of oilseeds, Ministry of Agriculture as Declaredon 19-01-2005.

(ii) Net availability of edible oils, Directorate of Vanaspati,Vegetable.

CONSUMPTION PATTERN OF EDIBLE OIL IN INDIA.

India is vast country and inhabitants of several of its regions have developedspecific preference for certain oils largely depending upon the oils available in theregion. For example, people in the South and West prefer groundnut oil whilethose in the East and North use mustard/rapeseed oil. Likewise, several pocketsin the South have a preference for coconut and sesame oil. Inhabitants ofnorthern plain are basically hard fat consumers and therefore, prefer Vanaspati a

term used to denote a partially hydrogenated edible oil mixture. Vanaspati has animportant role in our edible oil economy. Its production is about 1.2 to 1.4 milliontonnes annually. It has around 10% share of the edible of the market. It has theability to absorb a heterogeneous variety of oils, which do not generally finddirect marketing opportunities because of consumers preference for traditional oilsuch as groundnut oil, mustard oil , sesame oil etc. For example newer oils likesoyabean, ricebran and cottonseed and oils from oilseeds of tree and forestorigin have found their ray to the edible pool largely through vanaspati route. Oflate, things have changed. Through technological means such as refining,bleaching and de-odouraisation, all oils have been rendered practically colorless.Odorless and tasteless, and therefore, have become easily interchangeable in

the kitchen. Newer oils, which were not known before they have entered thekitchen, like those of cottonseed, sunflower, palm, oils or its liquid fraction(palmolein) soya bean and rice bran. About 60-70% predominately groundnutand mustard seeds are used to make non-refined or filtered oils. This tends tohave a strong and distinctive test preferred by most traditional customers. Theshare of raw oils refined oils and vanaspati in the total edible oil market isestimated at 42%, 48%and 10% respectively.

MAJOR FEATURES OF EDIBLE OILS ECONOMY:-

There are two major features, which have very significantly, contributed to

The development of this sector. One was the setting up of the Technology.Mission on Oilseeds in 1986. This gave a thrust to Governments efforts foraugmenting the production of oilseeds. This is evident by the very impressiveincrease in the production of oilseeds from about 11.3 million tonnes in 1986-87to 24.8 million tonnes in 1998-99. there was some setback in 1999-2000 because

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of the unseasonal rain followed by inclement weather. The production of oilseedsdeclined to 20.7 million tonees in 1999-2000. However, as per availableinformation. The oilseeds production in 2003-2004 is estimated to be 25.1 milliontonnes. The other dominant feature which has had great significant impact on thepresent status of edible oilseeds/oil industry has been the programme ofliberalization under which the Governments economic policy allows greaterfreedom to the open market and encourages healthy competition and self

regulation rather than protection and control. Controls and regulations have beenrelaxed resulting in a highly competitive market dominated by both domestic andmultinational players.

DEMAND FOR EDIBLE OILS RISES IN INDIA:-

Indian food industry continues to show a strong commitment to oils importsfollowing drop in domestic demand, says industry body.

Fresh figures from the Solvent Extractors Association of India (SEAI) revel thatedible oils imports increased by some 21 percent for the first six months to April2005.

Imports jumped to 2.2 million tonnes in the first half of 2004-2005 up from 1.82million tonnes for the same period last year.

Imports are expected to be much higher this year because of a drop in domesticoilseeds production, said B.V. Mehta, executive director of

SEIA adding that India was likely to import about 500,000 tonnes per month thisyear.

Purchases of edible oils by India are expected to reach around 5 million tonnesthis year from 4.4 million tonnes in 2003-2004 Mehta added reports the AmericanSoybean Association.

Soya oil in particular saw strong growth. Imports of crude soy oil leapt to 735.352tones in the November 2004 to April 2005 period up from 236.990 tonnes in ayear earlier. Crude palm oil purchases rose 10.8 percent to 1.01 million tonnesfrom 911,520 tonnes.

Indias oilseed output for 2005 is estimated to be around 21.8 million tonnes, afall of 6.4 percent from 23.3 million tonnes last year.

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The processed food market is enjoying decent growth in India, pushing updemand for oils. The Indian branded food and drinks market grew last year byover 5 percent, according to recent figures from ACNielsen, outpacing the globalthe global average growth rate 4 percent.

Supporting this buoyant overall trend, growth rates for individual productcategories within the Indian market too, reflect aggressive performance within thesimilar period.

SOYA OIL

The source: -

Soya was developed in China even before the time of written records. The nameof the Soya bean comes from sou meaning big bean and is one of the fiveholy plants of the Chinese people 5000 year ago. The Emperor himself plantedSoya every year in a ritual ceremony.

Nowadays, as a member of the legume family, it has an important position inecological agriculture. Legumes supply the soil with nitrogen and are thereforehighly suitable for use in the rotation of crops. In addition to its agricultural value,the soyabean also supplies especially healthy oil, which is making more and

more friends.

The plant itself is a short bushy plant 20-180 cms in height. It is grown innormally cultivated fields in rows.

Recently, there has been a massive boom in the production of geneticallyengineered soya bean, which can resist certain herbicides. Vast areas of northand South America have been planted with these GM Soya plants. The soyaused in the production of our oil is exclusively from organic farmers in France

who belong to a cooperative near Albi. The cultivation association pay veryconscientious attention to ensure that No GM soya seed is used to the extentthat they produce their own organic seed.

Processing:-

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At Amrit Banaspati Company we have stayed close to our roots nature. Ourspecial understanding of nature and her ways have enabled us to grow form aVanaspati company to a multi product organization producing a whole range ofedible oils and fats.

Today ABC has an installed capacity of 10,000 metric tonnes per month ascompared to a mere 3,000 metric tonnes per month in its first year of operations.This stupendous growth has been possible because ABC has continuouslyendeavored to bring new products to the Indian consumer and that end is R andD has played a key role.

Further ABC has over the years introduced a range of refined oils namely,soyabean, groundnut, cottonseed, mustard and sunflower.

With the objective of meeting the varied need of Indian consumer.

Besides ABC also produces bakery shortening and confectionery fats and oilsamong other products that meet your specific needs.

Most importantly, all our products meet the stringent international standards. Somuch so that ABC brands are household names today and have been honoredwith the Monde Selection Medal of Brussels on several occasions.

TURNOVER :-

The present turnover of Amrit Group is around 600 crores and of Rajpura unit isaround Rs.340 crores in terms of turnover. Amrit Banaspati company has been

ranked amongst the top 100 companies in the India.

QUALITY OBJECTIVES :-

Ensuring availability of all products in all packs sizes across the distribution

channel.

Achieve growth introduction of new products (industrial and consumers)

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Creating and sustaining quality and hygiene consciousness at all levels of

organizing and promoting employees participation.

Organization and promoting employee participation.

Continuous enhancing the money of the customers

QUALITY:-

To ensure consistently in the quality of various products manufactured at Rajpuraand to further improve the quality of its various products, company has very goodquality control systems together with the research and development departmentwhich is comparable to the best in the country.

It is to the credit of this good quality control systems and efficient R&D

department that ABC Rajpura has been honoured and awarded with theAmerican International Quality Certificates and Gold Medal to the managementof ABC Rajpura a transworld tradefare selection award of recognition for theiroutstanding performance in the manufacture in the Gagan Vanaspati.

PRICING STRATEGY OF ABC.

Pricing decision effects the overall marketing skills and consumer acceptability.While the external forces in which the commercial establishment to operates hasto be taken on account the but the internal forces, its strengths and weaknesses,the company objectives etc. have the viewed in the competitive filed. Edible oilprices is affected not only because of national and international market variationsbut because of internal factors such as government raw oils import policies pricesof other oils used in mixture and the total expected output of oil need crops. Theinterstate ban on supply of raw oils also affect the pricing of the product.

While marketing the price structure the marketer has to watch carefully the

pricing strategy adopted by the competitors the pricing structure whichrepresents the margin to the distributors, retailers etc has an impact on the salesof the product, the pricing structure of ABC Rajpura is as below :-

3-1/2 percent dealers margin.

5-1/2 percent retailers margin

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ABC Brand also covers the distributors on restrospective basis if there is anyprice fluctuations thus a safe play for the distrubutors and retailers too.

DISTRIBUTION OF PRODUCTS:-

Distribution of the products is the main objectives of the marketing process. It isthe process of transferring the product from the producers to the distributors andultimately to the consumers through retailers. The decision regarding thechannels of the distribution is very important decision from the companys pointof view because the selection of channel affects considerably the other marketingdecision.

Amrit Banaspati has adopted three tire Distribution :-

PLANT , DISTRIBUTERS , RETAILERS , CONSUMERS

All the products produced at ABC Rajpura are sold in the area of Punjab, Haryana,Rajasthan, J&K, Himachal Pradesh, West Bengal and Chandigarh through 130depots and 575 stations. Number of dealers engaged in distribution of Amrit Banaspatisproducts are around 670.

FORTUNE SOYABEAN OIL

Fortune Refined Soyabean Oilis light, odorless andhealthy oil. Most importantly it contains OMG3 (Omega 3 fatty acids) an essentialPUFA which needs to be supplemented from outside sources. Soyabean oil is thepreferred oil of many a household across the world.

Fortune Refined Soyabean Oil, enriched with OMG3, gives you andyour family Paanch Ka Aashirwad.

Fortune Refined Soyabean Oil is the highest seller in the refinedsoyabean oil category with 44% of the market share (As per ACNielsen Retail Audit Index - MAT Mar.'06).

Paanch Ka Ashirwad is for:

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1 Healthy eyes

2 A strong heart

3 The nourishment of the womb

4 Controlling diabetes

5 The healthy growth of your children

Fortune Refined Soyabean Oil is available in

Liner carton200 ml

Pouches

200 ml, 500 ml, 1 ltr

Pet bottles500 ml, 1 ltr, 5 ltr

Jerry cans2 ltr, 5 ltr, 15 ltr

Tins

15 ltr, 15 kg

Maha Fortune15 ltr

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The end-users of our products are: households and institutional buyers[catering / hospitality / processed food / snacks] set-ups. AWL has setup a strong distribution network of Company Distributors and SuperStockists for its retail operations. This chain helps to tap even thesmall retailers/traders and thus increasing our reach.

Today AWL has its distribution foot prints all across the country with various stock-points catering to more than 3800 distributors, 600 Super Stockists and numerousbrokers and other trade associates. AWL's retail reach is more than 500,000 outlets across

the country and this retail reach can be compared with the best FMCG giants in thecountry

Title Publication Date

Trusted Brands AwardWinner

Reader's Digest May 2006

Gujarat's rising star Business India May 07 2006

Oil buckle under astrucks

Economics Times February 02 2006

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Health to the people Brand Reporter February 01 2006

Fortune Mission Extra Health was undertaken by AWL in Mumbaibetween October-November 2005. The core objectives for undertakingMission Extra Health were to:

Create high brand visibility and awareness

Create top of the mind recall as a healthy oil

This activity was aimed at health conscious people of Mumbai. Height,weight, body mass index, blood pressure, blood sugar, cardio vascularcheck-ups were done of the individuals who participated in thisprogram. Each participant was handed a health check card, by thedoctor, with a rating system as to the position of his or her health.

The duration of the Fortune Mission Extra Health activity carried out inMumbai was for 40 days covering 19 Parks, 17 Residential colonies, 4

Malls, 4 Clubs, and 54 areas by the means of Road Show.

This activity received a tremendous response. We also got excellentpress coverage as the Fortune Mission Extra Health activity wasreported in various newspapers. There was a very good increase interms of brand awareness and overall the activity was a huge success

Adani Group with its turnover exceeding Rs.17000 crores(US $ 3.7 billion)in

2005, is one of the fastest growing corporate houses in India . Its flagship company Adani Enterprises Limited (formerly known as Adani Exports Ltd), is one of the largest

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trading companies in India with Five Star Trading House status (Highest statusconferred by the Govt. of India).

Adani Exports trades in nearly 40 commodities in more than 55countries around the world.

The Group owns a fully functional multi-purpose port at Mundrain the Gulf of Kutch, Gujarat.

Another Group company Adani Retail Ltd. is into retailing, andhas opened 55 super stores in Gujarat known by the name ofAdani Supermarkets.

The Group has also set up a BPO in Ahmedabad, iCall India Ltd.which caters to both International and Domestic clients.

Adani Group is also involved in infrastructure development whichincludes developing a Natural Gas distribution project building atownship and an SEZ at Mundra.

Adani Group has emerged as an integrated and diversified group with

leadership in the areas of global trading, edible oil manufacturing andinfrastructure development.

Wilmar Holdings is one of the world's largest trader and refiner ofedible oils. With consolidated sales ofUS $ 5 billion in 2005, thegroup is:

The largest palm oil refiner, palm kernel crusher and specialtyfats manufacturer in Indonesia

The largest exporter of palm and lauric oils, palm kernel expellerand related products in Indonesia

The largest soyabean crusher in China .

The group's global sourcing capability, cost effective processing,extensive distribution network and logistics capability, including its ownfleet of tankers, allows it to respond quickly to changes in marketconditions and deliver products on a timely basis to its customers.

The company has strategically located its refining and processingfacilities to both cater to different parts of the country as well asharness the potential of oilseed growing areas. The locations are at

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Mundra (Gujarat), Mantralayam (Andhra Pradesh), Bundi (Rajasthan)and Haldia (West Bengal).

AWL's largest state-of-the-art refinery is based at Mundra in the Gulf of

Kutch in Gujarat . The technology has been imported from De Smet ofBelgium and Alfa Laval of Sweden . The quality of oil is at par with bestin the world, meeting USFDA standards. AWL refined oil goes throughthe strictest quality controlled and computerized manufacturingprocess with online monitoring.

AWL's Mundra refinery was started with an initial refining capacity ofthe 600 Tonnes per Day (TPD) and after the recent expansion; Mundrahas a consolidated refining capacity of 2200 TPD and hydrogenationcapacity of 350 TPD. This refinery is a model for backward integration,starting from transportation of oil through pipelines from port to the

plant, to in house packaging material manufacturing like; blow-molding facility, corrugated box plant, tin manufacturing facility andmulti-layer packaging film plant. In addition to this is a 4 MW captivepower plant that provides uninterrupted and hassle free electricity.

Such integration provides an edge in maintaining highest quality

standards & a competitively priced product.

This plant was acquired from ITC & is reputed to be one of the bestplants in India for sunflower oil production. Theplant has a capacity tocrush 450 TPD of seedsand refining capacity of180 TPDoil. Located inclose proximity to the sunflower-growing belt of Andhra Pradesh andKarnataka, this plant is also suitable for crushing and refiningSoyabean and Groundnut oil. It was strategically acquired to cater toSouth India 's demand for Refined Sunflower Oil.

This plant was taken over from RICO industries. It has a capacity tocrush 450 TPD of seeds and refine 150 TPD of oil. The plant providesideal location for processing both mustard and soyabean. Apart from itthere is also a processing facility at Jaipur, which produces thepremium quality pungent mustard oil packed as Fortune "Kachi Ghani",

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exclusively to cater to the taste of pungent and pure mustard oil ofeastern India .

This plant was acquired from Acalmar, and has a capacity to refine600 TPD of oil. This plant provides ideal location for supplying toEastern parts of the country. It also has excellent facilities to

manufacture Speacilty Fats, which is an alternative for Vanaspati.

In addition the to the above refineries, AWL also has packing operations at

Chatral [ Gujarat ]

Latur [ Maharashtra ] Jaipur [Rajasthan]

Dharwad [Karnataka]

Cochin [Kerala]

Dewas [Madhya Pradesh]

The Ruchi Soya Industries Limited

Ruchi Soya Industries Limited is an agro industry of Rs 3081.60 crores turnoverRuchi Group. It is the flagship company of one of the five companies of thegroup. The group has an impressive net worth of Rs 401 crores (Rs 4010 million)and assets worth Rs 682.75 crores.

The company was founded by industrial visionary late Shri Mahadeo Shahra andat present is headed by his eldest son Shri Kailash Shahra, who is the Chairmanof the Group. Shri Kailash Shahra has enhanced the vision by transformingcountryside of Madhya Pradesh into Soya bowl of the nation.

Ruchi Soya Industries Limited (RSIL) is Flagship Company of Ruchi Group. It ismost integrated Soya processor and first company in the country to export Soya

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meals, manufacture edible grade Soya flour and textured Soya proteins in India.Its brand `Nutrela' enjoys market leadership in the Soya product segment. RSILis leading player in vegetable oils, Soya flour and vanaspati products. Itcommands large share of market. Three generation experience, integratedvision, entrepreneurship and industrial competitive spirit has not only expandedthe reputed business but has led to diversification in closely associated venturesincluding foreign collaborations.

Ruchi's Soya Products

Ruchi Soya Industries Limited (RSIL) has a large team of experts, technicians,scientists, administrators who are involved from the very beginning of theprocess of selection of soyabeans, processing and transporting them to mostadvanced plants. The products are produced under the supervision of an expert.The competent quality control team keeps close watch right from the beginning todispatch to the dealers.

The products are marketed throughout the country and even in wide rangeinternational markets. Strict quality control has developed enhanced faith,reliability and confidence of customers in the Ruchi products.

The Company offers a great range of products in Soya foods and Oils as well. Itsrange of Soya Foods include Nutrela Soya Chunks, Nutrela Soya Mini Chunks,Nutrela Soya Granules, Defatted Soya Flour, etc. The range of oil offers a varietyof low cholesterol health prone products such as Soyumm (Pure refinedSoyabean Oil), Sunrich & Pamban (Refined Sunflower Oil), Nutrela Vanaspati,Mandap (Pure refined mustard oil ).

It also offers Soya products such as Prosoy (Soyabean Meal) and Ruchithin(Soya Lecithin).

Soyumm (Ultra Refined Soya Oil)

It is pure sparkling, odorless oil manufactured from selected golden yellowSoyabean with sophisticated, advanced, most modern technology preservingand enchanting natural flavor, taste and nutritive value of the food stuff cooked.

It is healthy medium of cooking and recipes. High in nutrition, low in calories It is

high in poly - unsaturates with approximately 55% and low in saturates.One tbsp of Soyumm gives approximately 120 calories. It has 15% less

saturated fatty acids hence it helps in controlling cholesterol levels. It is rich invitamin E.

According to medical experts, it is good source of essential amino acids, whichare required for good health. Boon for cooking medium In chemical terms, it is

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tasteless but develops taste of the recipes cooked. It does not have irritating odorand enhances flavor of the items cooked. It adds to the nutritive value of the foodcooked making it more tasteful. Earns admiration of the Housewives andcooks alike. It prepares nutritious, health effective recipes maintainingwholesome taste.

Guests and host will enjoy the dishes in their natural enhanced flavor cooked in

sparkling clear, odourless flavor preserving cooking medium of Soyumm.Cookshanced flavor cooked in sparkling clear, odourless flavor preserving

cooking medium of Soyumm. Cooks will earn smile and admiration.

Universal Cooking Medium Soya oil is used world wide as a cooking medium.Most of the hotels, restaurants, eateries use Soya oil as cooking medium. Youmust have tasted recipes cooked in Soya oil but find the difference in dishescooked in Soyumm. It stands unique.

It is economical and you home ministry and finance ministry will love it.

Applicable and availability Ruchis Soyumm is available in bulk for industrial usesuch as in manufacture of mayonnaise, salad dressing, margarines, vanaspati,shortenings, surface coating and fish canning industries. For domestic use, it isavailable in 15 kg tins and branded consumer packs of lt. and 1 lt. polypacks at all wholesale and retail outlets.

Soyumm(1 Ltr Pouch )

Soyumm(1Ltr Bottle)

Soyumm(5 Ltr Jar) Soyumm

(15 Kg Jar)

Soyumm(15 Kg Tin)

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Soyabean Oil

Soyabean oil is the world's largest source of vegetable oil. It is grown extensivelyin the U.S.A., as well as South America and China. The North American Soyaharvest, which takes place around October each year, historically tends todetermine the prices of most other major oils, although in recent years the NorthAmerican crop has increasingly come under pressure from South AmericanSoya, which is harvested about March, and from European Rapeseed, which isharvested about July. Soyabean is also extensively grown in India. MadhyaPradesh is known to be the Soya bowl of the country.

Typicalcomposition %

Saturates 15Monounsaturated 23Polyunsaturated 62

Soya Oil contains higher levels of poly-unsaturates (which break down on beingheated) than, other such as Rapeseed Oil or Palm Oil. This gives the oil itsspecial characteristic of healthy oil. It is particularly attractive as a food ingredientand in the production of margarines and spreads.

It provides a healthy, nutritious and delicious cooking medium. The oil hasspecial advantage over other oils as it is low in calories due to higher level of polyunsaturates. It is also a rich source of Vitamin E. Due its safe use for heartpatients it is being used by millions of housewives and cooks all over the world.

Ruchis Soyabean oil Soyumm is a delightful, odourless, healthy oil which is a

pleasure to the health

Great Offers

Get a 15 ltr Bucket free with every 5 ltrSunrich Jar*

* Special offer for our customers from Chennai**Get a free gift on every purchase worth Rs. 250/-

Bangalore** Offers

*Get a pack of Tiger Biscuit free on every 5 litrepurchase ofRuchi Gold - Palmolein oil

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*Get a pack of Cashew Biscuit free with every 5 litre purchase of Sunrich --Sunflower oil*Get 500 ml Nutrela Vanaspati free with every 15 kg purchase of Sunrich --Sunflower

Shop in Bangalore Shop in Chennai

CARGILL LTD

There is a precedent for this phenomena. In Indonesia, the recent

food riots were largely caused by massive imports of soyabean oil, on

which the Indonesian people had become cripplingly dependent.

When the Indonesian currency collapsed, the retail price of soya

escalated, making the cooking oil far too expensive for the bulk of

the people to afford. India would be put in a similarly vulnerable

position if we were to become dependent on imported soya for

cooking oil.

But even if it were not genetically engineered, is soyabean oil really

beneficial to the health of the Indian people? To begin with one

cannot trust the large cereal merchants, such as Minnesota-based

Cargill Inc., who are notoriously only concerned with the `bottom

line'. For one thing it is an established fact that Cargill indulges in

what has been euphemistically referred to as 'purposeful

contamination' or 'blending' and, if they can get away with it, with

any kind of dirt, cracked grain, high moisture or anything that is

handy and cheap. If the moisture content of a consignment exported

by Cargill is down to 12 per cent and the contract allows for 14 per

cent, they will add water to it so as to bring it up to the maximum

allowable level. As David Senter, the Washington representative of

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the American Agricultural Movement notes, `all the grain companies

operate in the same way.' Indeed, as a Cargill superintendent stated

in a story published in 1982 in the Kansas City Times: `If we have

got a real clean load of grain we make sure we hold it until we can

mix it with something dirtier, otherwise we would be throwing moneyaway.' In addition, whereas the oil extracted using cold pressing

indigenous methods is fresh, nutritious, unadulterated, and retains

all its natural flavor, oil from soyabeans, because of their low oil

content, is extracted in large solvent extraction plants and requires

very much more chemical processing, among other things with the

use of volatile solvents, a method which was first applied in the US

for the recovery of grease from garbage, bones, cracking, and other

packing-house waste. The main solvent used is food-grade hexane.

It is supposed to be extra pure, but some believe that it is often

adulterated with much cheaper, commercial, hexane, which is not

pure and contains various hazardous substances such as the toxic

benzene.

In any case soyabean products, by their very nature, contain a

number of toxic substances at concentration levels which posesignificant health risks to humans and animals. They contain trypsin

inhibitors, which inhibit the pancreatic proteases of animals, causing

an increase in pancreatic size and weight and proliferation of

pancreatic acinar cells. The stress on the body due to an overactive

pancreas leads to growth depression, and can also lead to pancreatic

cancer. Soyabeans contain lectins, some toxic, which bind with

simple and complex carbohydrates, and can interfere with the

microbiology of the gut and with the proper functioning of the

immune system.

Advertisement

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CargilllaunchesActiLiteoil Mumbai: After the resounding success of its flagship Nature Fresh brand of brandedpackaged food products, Cargill Foods has launched ActiLite, a new refined blended oilthat is light and good for health.

ActiLite is a refined blended oil that contains the power of two the lightness ofsunflower and the nutrition of soyabean. ActiLite offers a right balance of three kinds of

fat (MUFA, PUFA and SFA) and is, therefore, a healthy well-balanced oil.

ActiLite provides the added advantage of being a light oil because of its excellentrefining process, which removes all impurities, colour pigments and wax, making italmost transparent and very light.

ActiLite is available in transparent packaging, which has been the hallmark of NatureFresh Oils, and allows the consumer to see the lightness of the oil before they purchase it.ActiLite is available across India and is priced at:

SKU West Bengal / Bihar / Jharkhand / J&K /A&N / NESA Rest of India

1 L pouch 61 59

2 L pouch 130 126

5 L pouch 315 305

Cargill is one of the biggest food companies in the world having more than 130 years ofexpertise in food grain selection and processing. It is the world's biggest producer,processor, and refiner of sunflower oil. Cargill has made quantum leaps in the smallperiod of two years in the Indian food market.

Having entered into the Indian market recently, Nature Fresh today is the second-largestmultinational atta brand in India and has a steadily growing market share in all theregions. The brand has also attained a double-digit market share in the branded refinededible oils category, and has made good inroads in the basmati rice and salt categories aswell.

Headquartered in Minneapolis, Cargill Foods is a $45-billion company ranked 45 th insales in the Fortune magazine's Global 500 and fifth among the companies in theprepared foods category in the magazine's ranking of the top 250 global food companiesin 1999

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Product

Dhara has 23 variants of mustard, rapeseed, sunflower, groundnut andsoyabean oils in its product basket. Dhara Refined Vegetable Oilcontributes 50% by value, to the Rs. 3,300 million turn over Dharaenjoys.

Despite being primarily a support to the small-scale Indian farmer,Dhara has played a crucial role in changing the industry norms andenriching the sluggish edible oils market. For instance, the brand wasthe first to change the weights and measurement descriptor from thekilo regimen to the litre regimen.

The consistency that it has managed to maintain has won the brandsupport from consumers and stockists alike.

Dhara is possibly stocked by more retailers than any other packagededible oil brand in the country.

So profound has been the impact of Dhara on the Indian market thatconsumers often ask for the 'Green Pack'. This has led many players inthe industry to themselves switch to this colour.

Promotion

The brand's promotions have always evoked enthusiastic response fromconsumers. This trait has been evident right from the first

advertisement of Dhara that appeared in 1988, talking of 'the true priceof oil'.

At that time the market was mostly dominated by unbranded oils, soldloose.

Dhara faced the challenge of converting the consumer to the quality

and reliability of packed and branded oil. The campaign for DharaRefined Vegetable Oil was a classic case of a promotion that succeededin reinforcing all brand attributes: taste, purity, consistency, freshnessand a product that offered consumers value for money. Consumerswere converted to 'the goodness of Dhara' with the base line: 'Anokhishudhta, anokha asar'.

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Market

After salt, edible oils are possibly the most important ingredient incooking. One of the

most interesting facts about household consumption patterns in India isthe high rate of growth of branded edible oils. Even today, especially inrural India and small towns, the majority of households purchasecooking oil from the nearby oil press or the grocer who sells unbrandedoil that comes in wholesale packs. Till about fifteen years ago brandedcooking oils were seen to be an item of middle class and eliteconsumption, mostly produced by multinational companies throughtheir Indian arms. Dhara, with its Operation Golden Flow changedthese traits of the Indian edible oil market forever. Created andconceived by the farmers' cooperative movement, Dhara is perceived to

be distinctly Indian in a very earthy way.

In the last three years the percentage of households using brandededible oils has almost doubled. The total size of the indigenously

produced and branded edible oil consumer market in India is about360,000 metric tonnes per year, consumed by some 29 millionhouseholds (Source: ACNielsen Retail Audit). In the highlycompetitive consumer-pack user segment for branded edible oils,

Dhara has the largest market share at 10.9%. It has a total consumerbase of 3.05 million households (Source: IRS 2002), while its turnoverexceeds Rs. 3.3 billion.

The market is segmented by diverse regional preferences for specificedible oils. Groundnut and sesame oil hold sway in West and SouthIndia; even though coconut oil is also popular in some segments of thelatter market. Mustard is a very strong choice in the East and the North.

Soyabean oil sells predominantly in Central India and the North-West,

although its usage is increasing across the country. Sunflower oil isused virtually all over the country. Significantly, Dhara is the first

brand to produce all these varieties as part of an umbrella strategy.

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Achievements

Dhara is at the forefront of the branded edible oil market, leading itsconsumer pack segment. It has also been rated by ACNielsen as beingamong the top five fastest growing brands in the FMCG sector in Indiain 2003. Through its value creating strategies and emphasis on purity

and quality, the brand has consistently created benchmarks for theentire edible oil industry, including Indian subsidiaries of multinational

brands. It has successfully addressed the changing needs and tastes ofthe consumer and introduced variants from time to time. Dhara canalso justly take credit for bringing world-class practices in packagingof edible oil to the country. It introduced tamper-proof aseptic

packaging to guarantee that only the purest quality reached consumers.Even today, Dhara is the only edible oil in the country that uses thetetra pack technology with six-layer packaging and undertakes morechecks and tests than any other brand in the industry. Tetra packs allowthe oil to be packed without the use of additives for maintaining shelf-life. Dhara's light weight and hygienic five-layered PET jar with adouble handle arrangement was developed during 1997/98, making theclear refined sunflower oil visible to consumers, further adding to theirconfidence in the brand. This pack has won a series of awards IndiaStar 98 in Mumbai, Asia Star 98 in Beijing and

PREFE RABLE BRANDS& PRICERAJP URA

BRANDS PACKING

PRICE

GINNI

1 LTR Rs. 51

5LTR Rs. 275

15LTR Rs. 765

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GEMINI

1 LTR Rs. 50

5LTR Rs. 270

15LTR Rs. 757

MAHAKOS

H

1 LTR Rs. 48.75

5LTR Rs. 260

15LTR Rs. 747

AMBUJA

1 LTR Rs. 49.505LTR Rs. 265

15LTR Rs. 745

FORTUNE

1 LTR Rs. 53

5LTR Rs. 285

15LTR Rs. 775

GOKUL

1 LTR Rs. 50

5LTR Rs. 270

15LTR Rs. 740

DHARA(fit n fine)

1 LTR Rs. 54

5LTR Rs. 285

15LTR Rs. N.A

WHAT RETAILERS HAVE TO SAY

1) Low margin: - Most of the retailers complained that they get very low

margin in all the products of ABCL as compared to its competitors

thats why unable to sell the local brand .

2) Leakage problem: -The retailers also complained about the leakage

problem faced by them in the cartoons of Ginni and no replacement,

but other companies are giving them full replacement of leakage

packages.3) Feed back problem: - The retailers also complained that they get very

less feed back from the company, like whenever any scheme is

introduced by the company, they are not even made aware of the

scheme.

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4) Quality problem: - The retailers also said that sometimes the quality

of soya oil is low they have face problems regarding their image

5) MRP Problem :- Retailers also complained that in the days of rising

prices, sometimes it happens that MRP of ginni products is less than

the price at which they have purchased it from the distributor.

6) PROBLEMS related to new products :- they complained that

sometimes they are even unaware of companies new products

WHAT CUSTOMERS HAVE TO SAY

1) MRP problem :- customers complaint that sometimes they have to pay

more price then the MRP

2) Leakage problem:- customers even told that sometimes they have to

face leakage problems

3) PROBLEMS related to new schemes : customers complaint thateven sometimes retailers dont even tell about new schemes

4) DISCOUNT schemes:- customers complaint that there are very lessdiscount schemes on soya oil as compared to other refined oil

RECOMMENDED MARKETING STRATEGY

The market strategy of the firm is a complete and unbeatable plan or an instrumentdesigned specially for attaining the marketing objective of company. The formulation ofthe marketing strategy consists of two steps :-

1. Segmentation & target market selection.

2. Assembling the marketing mix.

Market Segmentation And Target Market Selection

Market segmentation and target market selection have an intimate relationship withmarket strategy formulation.

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The company may focus on the following factors while laying down the target market.

1. Geographic Segmentation

Geographically the country can be broadly divided into 3 sub segments -Rural, Suburbanand Urban.

In the first phase(after the test launch), Urban parts of the country should be targeted. Thechosen segment is targeted because

Lack of infrastructure.

The consumption pattern & behavior in Rural India does not fit with the product

attributes and perceived benefits.

The limitation of disposable income is another factor that hampers entry in Rural

areas.

Semi-Urban may be considered in the second phase. An year after the launch.

Within Urban India, the cities with 1 million + population i.e. top 23 metros will betargeted. A soft launch of the brand should be undertaken before taking the brand tothese areas. This (test launch) will be undertaken in Bombay, since it (Bombay) is ahigh consumption city.

2. Demographic Segmentation

The demographic variables have been separately addressed to arrive at the targetaudience.

Age: 30-40 years + segment of the population is recommended to be targeted.

Family Life Cycle : In terms of family life cycle it is addressed at all of the

following :

1. Old people who are suffering from heart diseases.

2. Married people who are health conscious.

The brand may positioned such that it fits all stages of family life cycle.

Income : The income segmentation may be all households with an annual income

exceeding Rs. one lakh. Targeted audience may be all households that can afford a

television or have access to satellite television.

3. Psychographic Segmentation

Social Class : In terms of psychography the social class targeted is the educatedupwardly mobile urban middle and upper class. .

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Life Style : In terms of lifestyle, it may be aimed at those who favor buyingconvenience products. They are also willing to experiment with alternate products inplace of conventional food items.

4. Behavioural Segmentation

The moulded segment of the market is perceived to be the growth engine of themarket. Hence, this segment is quite lucrative for a new brand launch. This segmentcomprises of people who like to have chances and want to try new things.

5. Usage Rate

The market may be further segmented on usage rather than attitude.

TARGET AUDIENCE

Following from the above, it is recommended to target consumers whofound other refined oils too heavy. Usage rather attitude is being used to

segment. There are 181 million urban individuals in India Our targetsegment is people living in the top 23 metros (1 million +population), whichimplies 63 million people.

SUGGESTIVE MARKETING MIX

The objective of the marketing mix developed is:

To develop a product that is available, affordable, based on local raw

material, and adapted to the taste and the nutritional habits of the

population.

The elements of the mix - Product, Price, Place & Promotion have been entailed

below :

Product

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The two most important segments of the market are Moulded and Countline

segment(segments have a high share of the market). Also, it can be seen in the

findings, the Indian consumer does not recognise the difference between

Moulded and Countline segment. Further, a key decision that needs to be taken

is to decide whether to have a core brand focus or have a plethora of brands.

Here, it would be advisable to launch a complete basket of products covering

both the countline and the Moulded chocolate segment (at least if not Panned). A

range of brands can help cushion out risks over the entire offering.Also, it has

been that to sustain in the long term, a complete portfolio of chocolates for every

taste is essential. However, a concentration strategy may be adopted in the first

phase, focusing on one core flagship brand.

The various product attributes have been mentioned below :

Stipulations regarding the use of Hydrogenated Vegetable Oil-HVO (since

it contains nickel) may be adhered to. Nickel in chocolates can cause

cancer. However, research is still on to prove this. Product formulation

should keep this aspect in mind.

Packaging : The packages or the cover packs, of the brands can be in

Blue, Green and Red color which represents a fun element so that the

customers dont even realize that they are taking oil due to Drs

recommendation. The packaging should keep the product fresh and

protected from the harsh climatic conditions in the country, and hence

provide a longer shelf life.

Sizes : As can be seen in the findings the most popular size is litres

should be used. .

Shelf Life:-The product should also have a high shelf life with a good

shelf appeal as well..

Product Differentiation

Since, there exists strong competition from heavy weights such as FORTUNE ,

NATURE FRESH AND SOYUMM, the product offering should be well

differentiated.

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Pricing

Factors like competition, internal costs, the poistioning and corporate objective of

the company need to be taken into consideration by a company before pricing a

product.

Premium pricing (relative to the competing brands), with special emphasis on

taste and quality (most important attributes-see findings) is recommended. The

premium pricing does not suggest that the offering is made unaffordable to the

target consumer. A high price would not accompany a promise for a better taste

and quality.

Further, the product category is relatively inelastic i.e. consumers would not stopbuying their favourite brands if the price is increased by a few rupees (see

findings). Consumers feel that even if the price of their favourite brand is

reduced, they might not buy more of it.

Placement

The success of any FMCG product thrives on distribution. Factors like financial

cost effectiveness) perishability of the product, repeat orders; managerial

capacity and unit value of the product need to be carefully analysed while setting

up the distribution framework of the company. The product category is essentially

a pull market. However, the channel members provide greater visibility to the

product.

Recommended Distribution Logistics

The first task in hand should be, to effectively map the territory into smaller more

accessible and controllable units. An effective territory mapping needs to be done not

only to provide an efficient coverage of the market but also to provide growth

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opportunities to the constituents (stockists), as the company grows. The recommended

distribution chain would be as follows:

Carrying & Forwarding Agents: These may be appointed at two or more State(s) of

operation of the company. Carrying & Forwarding agents work on a commission basis

3% (industry norms) of the goods handled. It is recommended that the country keeps

about 4 to 6 weeks of inventory at the C&F level and a commission structure which is in

keeping with the industry norm. Therefore a 3 percent commission on the invoice value

may be provided to the agents.

Stockists : A stockist provides a local delivery point for the

manufacturer/marketer. They store the products, break bulk, and distribute to

the retailers. With greater no. of retailers now seeking credit from the retailer,

efficient management of collection has become a vital part of the stockists job.

The main problems that new product faces is that of getting experienced and

effective channel members. As existing marketing marketer/manufacturer can

piggy back on the existing channel structure. A new company will have to provide

greater incentives convince channel members to stock the product offering.

Hence, an innovative means of channel handling needs to be adopted:

Competitive commission to the stockists-around 5.66% on the invoice

(industry standards 5.66%)

The efforts of the sale representatives employed by the stockists to get orders

may be supplemented by the manufacturers sales force.

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Retail outlets to be serviced at least four times in a month (atleast once a

week)

Distributors (stockists) to maintain stock of not more than 15 to 20 days

Since, distributors are to maintain airconditioned godowns, in summers the

A/C expenses may be borne by the Co.

Wholeseller : Wholesellers prime concern is buy in bulk and sell at the fastest

rate. The aim of any distribution chain of mass-market product category like soya

oil would be to expand its reach i.e. the no. of outlets storing its products. This

may not be possible even with a well established stockist network. Hence,

wholesellers paly a significant role in supplementing the stockists effort snd in

providing a better reach to the product.

Retail Outlets : It is extremely important for any chocolate brand to have a well

entrenched retail presence. Reach Is the key.

The first stumbling block for a new brand/product is, to convince the retailers to

stock the offering. Retailers want smaller quantities at shorter intervals. Hence,retailers may be convinced by offering smaller quantity options to them. Also,

retail margins provided may be higher than the industry than the industry

standards (industry standards range from 8.5% to 9.5% of the MRP). The

margins offered can be around 9.75% of the MRP.

Promotion

This involves communicating persuasively to the consumers, in order to arouse theirinterest in the product. A detailed promotion plan involving advertisement, salespromotion and public relations is proposed.

.

Advertisement Plan

The Advertisement plan could be as under:

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Corporate objective: The corporate image should be built over a period of time,

so as to reinforce consumer confidence in the brands of the company. This is

also essential to counter competition, since over a period of time, names such as

fortune , nature fresh and soyumm have attained high levels of recognition and

assurance.

Advertisement Objectives

To position the product as a high quality brand, with a wide range of offering,

providing, fun anytime, anyplace products.

To create awareness about new arrivals of soya oil.

Induce consumer trials.

Build corporate image

To undertake competitive advertisement.

Message: The message design will be consist of following;

Appeal: it should be appealing one

Presentation: should be well presentable

Message Source: For print media the message source will be the copy partand creative advertisement design. For electronic media, the source will be

whole family unit, younger enjoying the food.

Media

Print Media : Will be the major magazines read by the target segment i.e..,

India today, society, femina, stardust etc..

Electronic Media : Since the whole of target segment watch Satellite TV during prime

time and advertisement will be featuring share for 3 or more time to leave an impact.

Public Relations:

I. The company will hold a press conference announcing its arrival in India and

will highlight its global achievements.

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II. Company has plan to sponsor events like 2 viz., skiing river rafting, yachting

etc.

III. Company will also sponsor fun based TV programs.

Sales promotion Activities: To induce consumers to try the new product and to

get the product pushed in the market the sales promotion plan should include the

following :

Trade promotion: The Company will have to offer lucrative trade promotion

schemes, in order to push primary sale. These include incentives to stockists for

pushing the sale of oil. At the retail level, the following trade promotion measures

may be adopted:

Schemes such as , a certain percent off on the purchase of Rs 5000 or Rs

10,000 worth of oil.

A 15 ltr tin free with every Rs50,000 purchase.

Shop Displays

Apart from these, WindowShelf space may be purchased outright.

Consumer Promotion: Some of the consumer offers that could be introduced are :

1. Free gifts like pen, soaps etc., on return of oils wrapper

2. Money Savers

3. The Company can announce consumer contests (with proof of purchase)

with attractive prizes, supplemented by an advertisement campaign.

.

MARKET TESTING PLAN

The company should test the product before it goes national (23 metros with million

+ population). This is so because:

1. It would reduce the risk of failure in the market where it goes national, by

validating the marketing mix.

2. Facilitate validation of positioning.

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3. Allow corrective action through incorporation of consumer feedback.

For test marketing the SOYA OIL, the plan may be as follows:

1. Test Objectives: To validate the brand names, new outlets, etc and to

measure the sales volume, pricing and promotion policy. Competitor reaction

can also be analysed.

2. The product may be launched in Bombay ( as a soft(test) launch). This

selection was based on :

Bombay is uniformally represented by the target segment

IMPLEMENTATION

A well designed marketing plan counts for nothing, if not implemented properly.

Success in the market place depends upon the way the plan is implemented. The

launch is recommended to be before winters-say September or October, since

That period would facilitate high Diwali sales, and

During winters people prefer more oily and fried as well as junk food so

consumption is more .

The success of the brand would largely depend on the following:

Sales Distribution Network

Quality standards

Research and Development-continuous innovative products

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Technology support

Before the launch the following should be ensured:

1. Product literature to the sales department to be provided & Training to sales

staff

2. Feedback of sales staff regarding product competition

3. Feedback of other departments like sales forecast to the production

department, R&D for product modification.

Finally, in order to ensure long term success of the product

Company should have a personnel department., which will handle employers

related problems.

Company should set up an operational department which will be for helping

the distributors and the retailers.

The marketing team must maintain a Management Information Systemconsisting of *Sales reports * Consumer feedback * product

OBJECTIVE OF THE STUDY

Research would be carried out based on these objectives.

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Time constraints put boundaries to sample area and hence limited the

extent of the study

Taking convenience sampling might have led to some bias as people

with different age groups have different perceptions

RESEARCH METHODOLOGY

A research design is the arrangement of condition for collection and analysis ofdata in a manner that to, combine relevance to research purpose with economyin procedure.

Research Design :- is conceptual structure within which research is conducted.It constitutes the blue print of collection, measurement and analysis of data

.Research Design is needed because it facilitates the smooth sailing of variousresearch operations, thereby making research as efficient as possible yieldingmaximum information with minimum time, effort and money. Research Designstands for advance planning of methods to be used for collecting relevant dataand techniques to be used in the analysis .The design helps researcher toorganize his ideas whereby it will be possible for him to look for flaws andinadequacies.

Method of data collection: - for collecting data and the accuracy of facts,complete enumeration was used. for collecting the data a sample of retailers &consumers were drawn

Data Analysis: - For the data analysis to know the market share of various

soyabean brands computer programme called Microsoft Excel was used, with

the help of Microsoft Excel, I came to to know the quantity sold per month of

each brands . On the basis of the quantity sold per month, I could collect the

market share of each brand.

Sample size: - sample size was 50 of retailers & 100 of customers.

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Sources of primary and secondary data:

The major aim of the project was to analyze the competition in occupyingmarket shares of var ious soyabean oil brands. Therefore I had to getconsiderable information about the competing brands. For this I had to gothrough a lot of secondary data.

A lot of issues ofBusiness Today ,Economic Times were consulted.

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Analysis of Retailer Responses

QUES :- which brands of soyabean oil are available in the shop?

VArious soyabean brands

available

fortune

31%ginni

8%

dhara

16%

soyumm

25%

nature

fresh

20%

fortune

nature fresh

soyumm

ginni

dhara

Out of 50 retailer respondents few retailers were only stuck to onesoyabean brand and maximum out of them were having or were dealing inalmost all the brands

QUES:- which soyabean oil has maximun sale per month?

Fortune 40Nature fresh 25Soyumn 32Ginni 10Dhara 20

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soyabean oil with maximum

sale

nature

fresh

9%

dhara

2%

ginni

2%

fortune

61%

soyumm

26%fortune

nature fresh

ginni

dhara

soyumm

Out of the 50 retailers 61% were of the view that fortune is the marketleader

QUES :- which soyabean oil has maximum sale in differentquantity packs?

Soyaben Oil with maximum

sale

I ltr

41%

5ltr

26%

15ltr

33% I ltr

5ltr

15ltr

As shown in the diagram 1ltr packing is the most saleable and it holds 41%

share of the total.

QUES :- Rank of the followings attributes in soyabean oilbetween 1-5 according to customer importance( 5 being maximum)

Fortune 32

Nature fresh 5

Ginni 1

Dhara 1

Soyumm 14

I ltr 5ltr 15ltr 40 25 32

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GRADING 1 2 3 4 5

Taste 3 16 23 3 5

Quality 3 18 20 5 4

Packaging 6 16 18 5 5

Brand image 7 21 8 8 6

Price 1 2 1 6 40

Out of the various attributes shown above PRICE is one of the mostimportant factor that influences buying decisions of various customers .

QUES :- what influences customers to buy the brand?

Customers are influenced by

advertising

3%

attractive

packaging

4%

retailer

3%

shop

display

6%pricing

24%

discount

25%

health

conscious

35%

advertising

attractive

packagingretailer

shop display

pricing

discount

health

conscious

Most of the customers consume soyabean oil because either they aresuffering from any heart disease or are health conscious and the ratiocovered is 35%.

QUES :- what are customer's feedback regarding soyabean oil?

Advertising 4Attractive

packaging 5Retailer 4Shop display 7Pricing 28Discount 30Healthconscious 40

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Customers are not satisfied with the discounts or the great offers they

are getting , sometimes they have to pay more than the MRP , they

consume soyabean oil just they are going health conscious ,

moreover they are receiving certain complaints regarding the tetra

packing because of leakage.

QUES:- Are you satisfied with incentives from the oil company?

SATSFIED WITH THE

INCENTIVES

yes

76%

no

24%

yes

no

Many of the retailers said that they are satisfied with the incentives they aregetting, 76%retailers are satisfied.

QUES :- Are you satisfied with the services of the brand you areselling?

Yes 38No 12

Yes 30

No 20

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SAISFIED WITH THE

SELLING BRANDS

yes

60%

no

40% yes

no

60% of the retailers said that they are satisfied with the brands the areselling.

QUES :- If no then what are the suggestions you will give to thecompany?

Suggestions

transport

ation

26%

scheme

32%

margin

38%

credit

4% transportation

scheme

margin

credit

32% of the retailers want ti give suggestions thart company should provide

retailers some schemes which would help retailers to boost company sales.

QUES :- Any suggestions to the company?

They want that their margin should be increased each and every

rather than they go on a fixed margin ,even they want that certain

perks or some schemes should be given to retailers also.

Transportation 13Scheme 16Margin 19Credit 2

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ANALYSIS OFCustomer Responses

QUES :- Do you use soyabean oil?

CONSUMPTION OF

SOYABEAN OIL

yes

62%

no

38% yes

no

Customers respondents agreed that they use soyabean oil and out of 100

respondents 62%agreed.

QUES :- If yes (check) the brand you use?

Most used brands

Fortune

41%

Naturefresh

Soyumn

24%

Ginni

3%

Dhara

13% Fortune

Nature fresh

Soyumn

Ginni

Dhara

In consumption as well as preferable brands FORTUNE leads with 41%

QUES :- Rank the following attributes according to theirimportance to you? (5 being maximum)

Yes 62

No 38

Fortune 25Nature fresh 12Soyumm 15

Ginni 2Dhara 8

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GRADING 1 2 3 4 5

Taste 6 19 25 5 7

Quality 5 17 27 6 7

Packaging 9 19 23 6 5

Brand image 7 21 4 13 7

Price 2 4 7 9 40

Out of the various attributes shown above PRICE is one of the most

important factor that influences buying decisions of various customers.

QUES :- What influenced you to buy the above stated brand(s)?

DECISION ARE INFLUENCED BY

5% 6%

19%

8%35%

27%

Advertisment

Attractive

PackagingRetailer

Shop display

Pricing

Health conscious

PRICING is again the leading factor followed by the customers who

consume just because they are health conscious.

Advertisment 3AttractivePackaging 4Retailer 12Shop display 5Pricing 21Healthconscious 17

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QUES :- If particular brand is not available with retailer the you

will. . . . .?

drop the idea of buying it 2go to another retailoutlet 37

try another brand23

If Particular brand not

avaliable

0%0%0%

3%

60%

37%

drop the idea

of buying itgo to another

retail outlet

try another

brand

As per the collected data it is clear that customers want to stick to their

particular brand rather than trying out some different brand.

QUES :- What according to you a suitable price for 1 ltr which is

of good quality?

below Rs 30 6

between 30 and 40 9

between 40 and 50 39

more than 50 8

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PRICE FOR 1LTR

10%

15%

62%

13%

below rs 30

between 30

and 40

between 40and 50

more than 50

AS clear from the above diagram it is clearly indicated that customers want

price of 1ltr between the range of 40 50 so that it is easily affordable for

them easily.

QUES :- If your brand is few Rs expensive than it, then will you

go for it?

WILL YOU BUY IF YOUR

BRAND IS EXPENSIVE

yes

63%

no

37% yes

no

Customers are ready to pay even high price because they are satisfied with

what they buy.

QUES :- A sale promotion scheme like rs 10 off , 250 gms extra

Yes 39No 23

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or a product free, whould it affect you purchase decision?

SALES PROMOTION

EFFECTS BUYING

DECISIONS

no

4%

yes

76%

yes

no

Almost 75% customers agrred that sales promotion schemes do effect the

buying decisions.

QUES :- what size of packaging do you normally buy?

PACKAGING MOSTLY SOLD

1ltr

60%

5ltr

19%

15ltr

21%1ltr

5ltr

15ltr

1LTR packaging is mostly sold in the market.

QUES :- Are you happy with the kind of soyabean oil brands

available in india, today?

YES 47NO 15

1ltr 37

5ltr 12

15ltr 13

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SATISFIED WITH THE

BRANDS SOLD IN INDIA

yes

60%

no

40% yes

no

Majority of the customers are satisfied with the brands that are available in

India.

QUES :- If no then why not?

All the customers have given their suggestions as well as complaints which

are shown later.

YES 37NO 25

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SUGGESTIONS OF THE RETAILERS &

CUSTOMERS

1) Leakage problem should be looked after and the replacement of the

leaked packets should be given to them.

2) The company should reduce the cost of their products and the margin

of the retailers should be increased.

3) There should be proper channel of information, whenever any scheme

is introduced by the company for the retailers, they should be properly

informed about the scheme.

4) In the same way, whenever any scheme is introduced for the

consumer there should be atleast a print advertisement if T.V.

advertisement is not possible.

5) Other incentives should also be given to the retailers like glow sign

boards etc.

CONCLUSI ONS & RECOMME NDATIONS

1) Leakage problem should be taken care of and the retailers should fully

compensated for their loss due to leakage.

2) There should be proper feedback for the retailers AS WELL AS

customers whenever any scheme is introduced for the retailers &

customers they should be made aware of it. Sales representatives

should be given guidelines to intimate each and every retailer of his

area about the schemes.

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3) Being all the companies are ISO 9001 company, it is not good for the

reputation company that it is getting complaints about the products

related to quality. More emphasis should be laid on the quality to avert

such circumstances.

4) Regarding the introduction of new products, the company should go for

aggressive marketing. There is a lot of potential in Soya Refined oil

segment, but retailers are not even aware of our product.

5) Whenever any consumer oriented scheme is introduced, the scheme

should be directly targeted to that person who actually uses i.e., house

wives.

6) Non monetary incentives should be also given to the retailers in each

and every city. They should be given glow sign boards and other sales

promotional materials. This will boost up their spirits.

MRP problem during the days of rising prices should be takencare. In this situation if retailers are getting the products on aprice higher than the MRP they cant sell it more than the MRP. Sothis problem should be looked after carefully.

Bibliography

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of

India).

Business today

GREEN AND TULL , Marketing Research

WEBSITES

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www. Google.co.in

www.adani.com

www.amri banaspati.com

www. Soyumm.com

www.cargill.com

www.dharaproducts.com

www. Naturefresh.com
http://www.adani.com/http://www.amri/http://www.cargill.com/http://www.dharaproducts.com/http://www.adani.com/http://www.amri/http://www.cargill.com/http://www.dharaproducts.com/

Project Report Ashwani

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