branded cooking oil

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Marketing Management -I

Project Report

Branded Cooking Oils

Section C Group-III

Ganesa Kumar K V 0128/48

Happy Saini 0137/48

Harshit Krishna 0143/48Himanshu Kumar 0147/48

Rohan Gala 0127/48

Uday Mehta 4035/18

Vinay Kumar Juluri 4040/18

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Industry Introduction

Marketing Management Project Report

Low-margin and high-turnover industry

Steady growth of around 4.5%

Per capita consumption:

Current levels-13.5 - 14 kg.

World average - 24 kg Raw oil-35%, Refined oils-55% & Vanaspati-10%

Branded oil industry is growing at rate of 20%

Major brands: Sundrop, Nutrela, Dhara, Saffola,

Sweekar, Nature Fresh

Major Oils: Palm oil - 46%, Soya bean oil - 16%

and mustard oil 14%

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Marketing Survey

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Objectives Key factors affecting consumer buying behavior Analyze the interaction between these factors

Derive conclusions that a marketer can use

MethodologySurvey conducted under two broad categories:

Customers (income based segmentation)

Lower middle class (LMC) Upper middle class (UMC)

Shopkeepers

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Questions for consumers Specific brand preferences

Reasons for choice of brands

Brand Loyalty

Questions for shopkeepers Influence on consumer buying behavior Buying pattern and SKU preferences



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Customer Analysis



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CustomerPerceived Value

Determination

Analysis

CustomerSatisfaction

Determination

Enhancement

Decision Makers

Buyers andUsers

Influencers

Factors influencingConsumerBehavior

Personal

Social andCultural


We shall cover

-> Observations and Explanations approach

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1. Customer Perceived Value

1.1 Customer Benefits

High Income

Low Income

1.Psychological(Health Benefits)

Increasing

Importance

2.Functional(Taste, Purity, Quality)

3.Economic(Prices)



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7%

31%

20%

42%

Lower Middle Income

31%

47%

5%

17%

Upper Middle Income

Traditionally Used

Health Benefits

Taste & Quality

Price


1.2 Most Valued Attributes

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UMCs placed constant importance on

particular attributes over time, but

changed brands to fit their criteria thebest as per their lifestyle

LMCs as they grew in income shifted the

amount of importance they laid on

individual product attributes


1.3 Value Analysis

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Must beconstantly

monitored


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2.1 Total Customer Satisfaction


Expectations Performance

High rate of repeat purchase: Retentiondifficult without constantly meeting

expectations

Attributes observed in decision making:

Tangible and Intangible Difficult to portray superiority in terms of

Intangible benefits

Focus on

Marketing

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Very competitive market

High Customer Retention indicatesSatisfaction and hence, loyalty

Most consumers long term users ofparticular brands, but many also willing

to shift to a better value offering

Constantly

Improve

Value

Proposition

2.2 Customer Loyalty and Retention

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25%

46%

29%

Would switch to better Value

Offering

Yes

Maybe / Will

test onceNo

8%6%

47%

39%

Years since change of Brand

< 1

1 to 2

2 to 5

> 5

2.3 Customer Loyalty and Retention

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Buyers and Users Users of Cooking Oil (usually homemakers)

principally decide type, to some extent brand

Buyer (in some cases the earning member) final

decision maker at point of sale, affects choice ofbrand to some extent

Influencers

Other family members (children, senior citizens)

influence which product attribute gets priorityin buying

Older members: Health Benefits more

important, Children: Taste more important

3. Decision Makers

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4. Other Factors Influencing

Consumer Behavior


Personal Factors

Economic Circumstances

Age and Stage in Life

Social and Cultural Factors

Sources of Information

64%7%

22%

7%

Sources of Information

TV

Magazine

Word of Mouth

Point of Sale

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Saffola36%

Nature

Fresh

13%

Sundrop

23%

Emami

6%

Fortune

13%

Engine

6%

Others3%

Upper Middle Income

Preferred Cooking Oil Brands

Refer to Exhibit 6

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Saffola

14%

Nature Fresh9%

Sundrop

34%

Emami

3%

Fortune

17%

Engine

20%

Others3%

Lower Middle Income

Preferred Cooking Oil Brands

Refer to Exhibit 6

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Marketing Mix


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Marketing Mix Variables - 1


Product Value

Stock Keeping Unit

Quality

Price

Product Quality Pricing

Lower quality oils branded, higher quality

oils Value Pricing

Brands offering similar benefits are priced

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Marketing Mix Variables - 2


Place

Kirana stores, retail shops & wholesalers.

Modern retail stores

Every SKU & variant of oil is present

Promotion

Special offers

Advertising

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Thank You

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Questions

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branded cooking oil

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