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EDIBLE OIL MARKET IN INDIA
India accounts for 9.3 percent of world oilseed production. It has the world’s fourth
largest edible oil economy. Yet, about 43 percent of edible oil available in India is
imported. In 1999 India ranked as the world’s largest importer of edible oils, displacing
China. The bulk of edible oil India imports under the Open General 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).
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.
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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.
IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S 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 sector occupies an
important position in the agricultural economy and accounting for the estimated
production of 28.21 million tonnes of nine cultivated oilseeds during the year 2007-08.
India contributes about 6-7% of the world oilseeds production. Export of oilmeals,
oilseeds and minor oils has increased from 5.06 million Tones in the financial year 2005-
6 to 7.3 million tons in the financial year 2006-07. In terms of value, realization has
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gone up from Rs. 5514 crores to Rs.7997 crores. India accounted for about 6.4% of world
oilmeal export.
Types of Oils commonly in use in India
India is fortunate in having a wide range of oilseeds crops grown in its different agro
climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed,
nigerseed/castor are the major traditionally cultivated oilseeds. Soyabean and
sunflowerhave also assumed importance in recent years. Coconut is most important
amongst the plantation crops. Efforts are being made to grow oil palm in Andhra Pradesh,
KarnatakaTamil Nadu in addition to Kerala and Andaman & Nicobar Islands. Among the
non-conventional oils, ricebran oil and cottonseed oil are the most important. In addition,
oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a
significant source of oils. Figures pertaining to estimated production of major cultivated
oilseeds, availability of edible oils from all domestic sources and consumption of edible
oils (from Domestic and Import Sources) during the last few years are as under: -
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In Lakh Tonne
Oil Year (Nov.- Oct.)
Production of Oilseeds
Net availability of edible oils from all domestic sources
Consumption of Edible Oils (from domestic and import sources)
2000-2001 184.40 54.99 96.76
2001-2002 206.63 61.46 104.68
2002-2003 148.39 46.64 90.29
2003-2004 251.86 71.40 124.30
2004-2005 243.54 72.47 117.89
2005-2006 279.79 83.16 126.04
2006-2007 242.89 73.70 115.87
2007-2008(E)
282.08 84.27 121.91
Source (i) Production of oilseeds, Ministry of Agriculture as Declared on
19-01-2005.
(ii) Net availability of edible oils, Directorate of Vanaspati, Vegetable.
CONSUMPTION PATTERN OF EDIBLE OIL IN INDIA.
India is a vast country and inhabitants of several of its regions have developed specific
preference for certain oils largely depending upon the oils available in the region. For
example, people in the South and West prefer groundnut oil while those in the East and
North use mustard/rapeseed oil. Likewise several pockets in the South have a preference
for coconut and sesame oil. Inhabitants of northern plain are basically hard fat
consumers and therefore, prefer Vanaspati, a term used to denote a partially
hydrogenated edible oil mixture. Vanaspati has an important role in our edible oil
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economy. Its production is about 1.2 million tonnes annually. It has around 10% share of
the edible oil market. It has the ability to absorb a heterogeneous variety of oils, which do
not generally find direct marketing opportunities because of consumers’ preference for
traditional oils such as groundnut oil, mustard oil, sesame oil etc. For example, newer oils
like soyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and
forest origin had found their way to the edible pool largely through vanaspati route. Of
late, things have changed. Through technological means such as refining, bleaching and
de-odouraisation, all oils have been rendered practically colourless, odourless and
tasteless and, therefore, have become easily interchangeable in the kitchen. Newer oils
which were not known before have entered the kitchen, like those of cottonseed,
sunflower, palm oil or its liquid fraction (palmolein), soyabean and ricebran. These tend
to have a strong and distinctive taste preferred by most traditional customers. The share
of raw oil, refined oil and vanaspati in the total edible oil market is estimated at 35%,
55% 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 Government's efforts for augmenting the
production of oilseeds. This is evident by the very impressive increase in the production
of oilseeds from about 11.3 million tonnes in 1986-87 to 24.8 million tonnes in 1998-99.
There was some setback in 1999-2000 because of the un-seasonal rain followed by
inclement weather. The production of oilseeds declined to 20.7 million tonnes in 1999-
2000. However, the oilseeds production went up to 27.98 million tones in 2005-06 and
was 24.29 million tonnes during 2006-07 oil year. As per the 3rd advance estimate by
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Ministry of Agriculture dated 22.4.08 the production of nine major oilseeds is estimated
to be about 28.21 million tonnes during 2007-08. The other dominant feature which has
had significant impact on the present status of edible oilseeds/oil industry has been the
programme of liberalisation under which the Government's economic policy allowing
greater freedom to the open market and encourages healthy competition and self
regulation rather than protection and control. Controls and regulations have been relaxed
resulting in a highly competitive market dominated by both domestic and multinational
players.
DEMAND FOR EDIBLE OILS RISES IN INDIA:-
Indian food industry continues to show a strong commitment to oils imports following
drop in domestic demand, says industry body. Fresh figures from the Solvent Extractors
Association of India (SEAI) revel that edible oils imports increased by some 24 percent
for the first six months to April 2008. Imports jumped to 2.4 million tonnes in the first
half of 2007-2008 up from 1.92 million tonnes for the same period last year.
Imports are expected to be much higher this year because of a drop in domestic oilseeds
production, “said B.V. Mehta, executive director of SEIA adding that India was likely to
import about 500,000 tonnes per month this year.
Purchases of edible oils by India are expected to reach around 6 million tonnes this year
from 4.4 million tonnes in 2006-2007 Mehta added reports the American Soybean
Association.
Soya oil in particular saw strong growth. Imports of crude soy oil leapt to 835.352 tones
in the November 2006 to April 2007 period up from 336.990 tonnes in a year earlier.
Crude palm oil purchases rose 10.8 percent to 1.95 million tonnes from 1101,520 tonnes.
The processed food market is enjoying decent growth in India, pushing up demand for
oils. The Indian branded food and drinks market grew last year by over 5 percent,
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according to recent figures from ACNielsen, outpacing the global the global average
growth rate 4 percent.
Supporting this buoyant overall trend, growth rates for individual product categories
within the Indian market too, reflect aggressive performance within the similar period.
Status of the Vegetable Oil Industry
(As on April 2008)
Type of Vegetable Oil Industry
No. Of Units
Annual Capacity(Lakh MT)
Average Capacity Utilisation
Oilseed Crushing Units1,50,000 (Approx)
425(In terms of Seeds)
10-30%
Solvent Extraction Units 779419
(In terms of Oil-bearing Material)
33%
Refineries attached with Vanaspati Units
12751
(in terms of oil)45%
Refineries attached with Solvent Units
22537
(in terms of oil)29%
Independent Refineries 58535
(in terms of oil)36%
Total Refineries 937123
(in terms of oil)37%
Vanaspati Units 268
58(in terms of Vanaspati, Bakery Shortening &
Margarine)
19%
Oilseeds crushing units include crushing units in the small-scale sector as also in the
organised sector. The capacity utilisation generally ranges from an average of 10% for
the ghanis (small scale sector) to around 30% in case of the expellers in the
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organized sector.
SOYA OIL
The source: -
Soya was developed in China even before the time of written records. The name of the
Soya bean comes from “sou” meaning “big bean” and is one of the five holy plants of the
Chinese people 5000 year ago. The Emperor himself planted Soya every year in a ritual
ceremony.
Nowadays, as a member of the legume family, it has an important position in ecological
agriculture. Legumes supply the soil with nitrogen and are therefore highly 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 in normally
cultivated fields in rows.
Recently, there has been a massive boom in the production of genetically engineered soya
bean, which can resist certain herbicides. Vast areas of north and South America have
been planted with these GM Soya plants. The soya used in the production of our oil is
exclusively from organic farmers in France who belong to a cooperative near Albi. The
cultivation association pay very conscientious attention to ensure that No GM soya seed
is used to the extent that they produce their own organic seed.
Processing:-
Soya is a basic component of the diet in Asian countries and forms the basis of tofu. Soya
oil first cold pressing has a full aroma, which deliciously emphasizes the natural flavor of
your salads and raw dishes. Industrially refined soya bean oil is product which one
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should regard with particular skepticism; with regard to flavor and nutritional
significance industrially refined soya bean oil has simply nothing to offer. When our soya
bean oils is pressed, the whole oil mill is filled with a magnificent aroma of fresh beans.
The processor has to press some 10 killos of soya bean in order to extract one simple litre
of oils.
Cooking:-
It is not really advisable to beat cold pressed soya bean oil. Our soya bean oils have a
delicate bean like flavor. It is thus ideally suited to enhance salads of hearty noodle,
potatoes and beans. If you find the soya flavor to dominant, simply mix it with a little
safflower oils.
Health:-
Soya bean oil possesses more than lecithin than any other oil. It is thus a real power food
for the bran and nervous system. Stress bound managers and all mothers with small
children should always keep a small store of cold pressed soya bean oil at hand:-
- 100g of cold pressed soya bean oil contain 31.7 mg of vitamin E.
- 13.7% saturated fatty acids.
- 25.3% monounsaturated fatty acids.
- 60.8% polyunsaturated fatty acids, of which 6.5% linolenic acid.
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MAJOR PLAYERS
AMRIT BANASPATI CO. LTD
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.
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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.
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.
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TURNOVER :-
The present turnover of Amrit Group is around 600 crores and of Rajpura unit is around
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)
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 Rajpura and to
further improve the quality of its various products, company has very good quality
control systems together with the research and development department which 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 the American International Quality
Certificates and Gold Medal to the management of ABC Rajpura a transworld tradefare
selection award of recognition for their outstanding performance in the manufacture in
the Gagan Vanaspati.
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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 has to 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 oil prices is affected not only
because of national and international market variations but because of internal factors
such as government raw oils import policies prices of other oils used in mixture and the
total expected output of oil need crops. The interstate 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 which represents the margin to
the distributors, retailers etc has an impact on the sales of the product, the pricing
structure of ABC Rajpura is as below :-
3-1/2 percent dealers margin.
5-1/2 percent retailers margin
ABC Brand also covers the distributors on restrospective basis if there is any price
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 is the
process of transferring the product from the producers to the distributors and ultimately to
the consumers through retailers. The decision regarding the channels of the distribution is
very important decision from the company’s point of view because the selection of
channel affects considerably the other marketing decision.
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Amrit Banaspati has adopted four tier 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 32
depots and 575 stations. Number of dealers engaged in distribution of Amrit Banaspati’s
products are around 1200 & more than 1 lakh of retailer.
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FORTUNE SOYABEAN OIL
Fortune Refined Soyabean Oil is light, odorless and healthy oil. Most importantly it
contains OMG3 (Omega – 3 fatty acids) – an essentialPUFA which needs to be
supplemented from outside sources. Soyabean oil is the preferred oil of many a
household across the world.
Fortune Refined Soyabean Oil, enriched with OMG3, gives you and your family “Paanch
Ka Aashirwad.”
Fortune Refined Soyabean Oil is the highest seller in the refined soyabean oil category
with 44% of the market share (As per AC Nielsen Retail Audit Index - MAT Mar.'06).
Panch ka Ashirwaad is for:-
Healthy Eyes A strong heart
The nourishment of the womb
Controlling diabetes
The healthy growth of your children
Fortune refined soyabean oil is available in:-
Liner carton 200 ml
Pouches 200 ml, 500 ml, 1 ltr
Pet bottles 500 ml, 1 ltr, 5 ltr
Jerry cans 2 ltr, 5 ltr, 15 ltr
Tins 15 ltr, 15 kg
Maha fortune 15 ltr
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Distribution Network
The end-users of our products are: households and institutional buyers [catering /
hospitality / processed food / snacks] set-ups. AWL has set up a strong distribution
network of Company Distributors and Super Stockists for its retail operations. This chain
helps to tap even the small 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 numerous
brokers 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 the
country
Fortune Mission Extra Health was undertaken by AWL in Mumbai between October-
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November 2005. The core objectives for undertaking Mission 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 vascular check-ups were done of the
individuals who participated in this program. Each participant was handed a health check
card, by the doctor, with a rating system as to the position of his or her health.
The duration of the Fortune Mission Extra Health activity carried out in Mumbai 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 excellent press coverage as the
Fortune Mission Extra Health activity was reported in various newspapers. There was a
very good increase in terms of brand awareness and overall the activity was a huge
success
Adani Group with its turnover exceeding Rs.18000 crores (US $ 3.9billion) in 2007, 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 trading
companies in India with Five Star Trading House status (Highest status conferred by the
Govt. of India).
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Adani Exports trades in nearly 40 commodities in more than 55 countries around
the world.
The Group owns a fully functional multi-purpose port at Mundra in the Gulf of
Kutch, Gujarat.
Another Group company Adani Retail Ltd. is into retailing, and has opened 55
super stores in Gujarat known by the name of Adani Supermarkets.
The Group has also set up a BPO in Ahmedabad, iCall India Ltd. which caters to
both International and Domestic clients.
Adani Group is also involved in infrastructure development which includes
developing a Natural Gas distribution project building a township and an SEZ at
Mundra.
Adani Group has emerged as an integrated and diversified group with leadership in the
areas of global trading, edible oil manufacturing and infrastructure development.
WILMAR HOLDINGS
Wilmar Holdings is one of the world's largest trader and refiner of edible oils. With
consolidated sales of US $ 5 billion in 2005, the group is: The largest palm oil refiner, palm kernel crusher and specialty fats manufacturer
in Indonesia
The largest exporter of palm and lauric oils, palm kernel expeller and related
products in Indonesia
The largest soyabean crusher in China .
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The group's global sourcing capability, cost effective processing, extensive distribution
network and logistics capability, including its own fleet of tankers, allows it to respond
quickly to changes in market conditions and deliver products on a timely basis to its
customers.
MANUFACTURING FACILITIES
The company has strategically located its refining and processing facilities to both cater
to different parts of the country as well as harness the potential of oilseed growing areas.
The locations are at Mundra (Gujarat), Mantralayam (Andhra Pradesh), Bundi
(Rajasthan) and Haldia (West Bengal).
MUNDRA GUJRAT
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 of Belgium and Alfa Laval of Sweden
. The quality of oil is at par with best in the world, meeting USFDA standards. AWL
refined oil goes through the strictest quality controlled and computerized manufacturing
process with online monitoring.
AWL's Mundra refinery was started with an initial refining capacity of the 600 Tonnes
per Day (TPD) and after the recent expansion; Mundra has a consolidated refining
capacity of 2200 TPD and hydrogenation capacity 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,
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corrugated box plant, tin manufacturing facility and multi-layer packaging film plant. In
addition to this is a 4 MW captive power plant that provides uninterrupted and hassle free
electricity.
Such integration provides an edge in maintaining highest quality standards & a
competitively priced product.
MANTRALAYAM (ANDHRA PRADESH)
This plant was acquired from ITC & is reputed to be one of the best plants in India for
sunflower oil production. The plant has a capacity to crush 450 TPD of seeds and
refining capacity of 180 TPD oil. Located in close proximity to the sunflower-growing
belt of Andhra Pradesh and Karnataka, this plant is also suitable for crushing and refining
Soyabean and Groundnut oil. It was strategically acquired to cater to South India 's
demand for Refined Sunflower Oil.
BUNDI (RAJASTHAN)
This plant was taken over from RICO industries. It has a capacity to crush 450 TPD of
seeds and refine 150 TPD of oil. The plant provides ideal location for processing both
mustard and soyabean. Apart from it there is also a processing facility at Jaipur, which
produces the premium quality pungent mustard oil packed as Fortune "Kachi Ghani",
exclusively to cater to the taste of pungent and pure mustard oil of eastern India .
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HALDIA (WEST BENGAL)
This plant was acquired from Acalmar, and has a capacity to refine 600 TPD of oil. This
plant provides ideal location for supplying to Eastern parts of the country. It also has
excellent facilities to manufacture Speacilty Fats, which is an alternative for Vanaspati.
PACKAGING UNITS
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 turnover Ruchi
Group. It is the flagship company of one of the five companies of the group. The group
has an impressive net worth of Rs 401 crores (Rs 4010 million) and assets worth Rs
682.75 crores.
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The company was founded by industrial visionary late Shri Mahadeo Shahra and at
present is headed by his eldest son Shri Kailash Shahra, who is the Chairman of the
Group. Shri Kailash Shahra has enhanced the vision by transforming countryside of
Madhya Pradesh into Soya bowl of the nation.
Ruchi Soya Industries Limited (RSIL) is Flagship Company of Ruchi Group. It is most
integrated Soya processor and first company in the country to export Soya meals,
manufacture edible grade Soya flour and textured Soya proteins in India. Its brand
`Nutrela' enjoys market leadership in the Soya product segment. RSIL is leading player in
vegetable oils, Soya flour and vanaspati products. It commands large share of market.
Three generation experience, integrated vision, entrepreneurship and industrial
competitive spirit has not only expanded the reputed business but has led to
diversification in closely associated ventures including 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 the process of selection of
soyabeans, processing and transporting them to most advanced plants. The products are
produced under the supervision of an expert. The competent quality control team keeps
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close watch right from the beginning to dispatch to the dealers.
The products are marketed throughout the country and even in wide range international
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. Its range of
Soya Foods include Nutrela Soya Chunks, Nutrela Soya Mini Chunks, Nutrela Soya
Granules, Defatted Soya Flour, etc. The range of oil offers a variety of low cholesterol
health prone products such as Soyumm (Pure refined Soyabean 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.
Soyumm (Ultra Refined Soya Oil)
It is pure sparkling, odorless oil manufactured from selected golden yellow Soyabean
with sophisticated, advanced, most modern technology preserving and 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 in vitamin E.
According to medical experts, it is good source of essential amino acids, which are
required for good health. Boon for cooking medium In chemical terms, it is tasteless but
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develops taste of the recipes cooked. It does not have irritating odor and enhances flavor
of the items cooked. It adds to the nutritive value of the food cooked making it more
tasteful. Earns admiration of the Housewives and cooks alike. It prepares nutritious,
health effective recipes maintaining wholesome 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. You must have tasted
recipes cooked in Soya oil but find the difference in dishes cooked in Soyumm. It stands
unique.
It is economical and you home ministry and finance ministry will love it. Applicable and
availability Ruchi’s Soyumm is available in bulk for industrial use such as in
manufacture of mayonnaise, salad dressing, margarines, vanaspati, shortenings, surface
coating and fish canning industries. For domestic use, it is available in 15 kg tins and
branded consumer packs of ½ lt. and 1 lt. poly packs at all wholesale and retail outlets.
Alumni ID: DS79-M -540
IIPM, New Delhi 25
Soyabean Oil
Soyabean oil is the world's largest source of vegetable oil. It is grown extensively in the
U.S.A., as well as South America and China. The North American Soya harvest, which
takes place around October each year, historically tends to determine the prices of most
other major oils, although in recent years the North American crop has increasingly come
under pressure from South American Soya, which is harvested about March, and from
European Rapeseed, which is harvested about July. Soyabean is also extensively grown
in India. Madhya Pradesh is known to be the Soya bowl of the country.
Typicalcomposition %
Saturates 15
Monounsaturated 23
Polyunsaturated 62
Soya Oil contains higher levels of poly-unsaturates (which break down on being heated)
than, other such as Rapeseed Oil or Palm Oil. This gives the oil its special characteristic
of healthy oil. It is particularly attractive as a food ingredient and in the production of
margarines and spreads.
It provides a healthy, nutritious and delicious cooking medium. The oil has special
advantage over other oils as it is low in calories due to higher level of poly unsaturates. It
is also a rich source of Vitamin E. Due its safe use for heart patients it is being used by
Alumni ID: DS79-M -540
IIPM, New Delhi 26
millions of housewives and cooks all over the world.
Ruchi’s Soyabean oil – Soyumm is a delightful, odourless, healthy oil which is a
pleasure to the health
CARGILL LTD.
There is a precedent for this phenomenon. 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 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
Alumni ID: DS79-M -540
IIPM, New Delhi 27
sure we hold it until we can mix it with something dirtier, otherwise we would be
throwing money away.' 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 pose significant 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.
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IIPM, New Delhi 28
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 of
expertise 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 small
period of two years in the Indian food market.
Having entered into the Indian market recently, Nature Fresh today is the second-largest
multinational atta brand in India and has a steadily growing market share in all the
regions. The brand has also attained a double-digit market share in the branded refined
edible oils category, and has made good inroads in the basmati rice and salt categories as
well.
DHARA
Product
Dhara has 23 variants of mustard, rapeseed, sunflower, groundnut and soyabean
oils in its product basket. Dhara Refined Vegetable Oil contributes 50% by value,
to the Rs. 3,300 million turn over Dhara enjoys.
Despite being primarily a support to the small-scale Indian farmer, Dhara has
played a crucial role in changing the industry norms and enriching the sluggish
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IIPM, New Delhi 29
edible oils market. For instance, the brand was the first to change the weights and
measurement descriptor from the kilo regimen to the litre regimen.
The consistency that it has managed to maintain has won the brand support from
consumers and stockists alike.
Dhara is possibly stocked by more retailers than any other packaged edible oil
brand in the country.
So profound has been the impact of Dhara on the Indian market that consumers
often ask for the 'Green Pack'. This has led many players in the industry to
themselves switch to this colour.
Promotion
The brand's promotions have always evoked enthusiastic response from consumers.
This trait has been evident right from the first
advertisement of Dhara that appeared in 1988, talking of 'the true price of oil'.
At that time the market was mostly dominated by unbranded oils, sold loose.
Dhara faced the challenge of converting the consumer to the quality and reliability
of packed and branded oil. The campaign for Dhara Refined Vegetable Oil was a
classic case of a promotion that succeeded in reinforcing all brand attributes: taste,
purity, consistency, freshness and a product that offered consumers value for
money. Consumers were converted to 'the goodness of Dhara' with the base line:
'Anokhi shudhta, anokha asar'.
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IIPM, New Delhi 30
Market
After salt, edible oils are possibly the most important ingredient in cooking. One of
the most interesting facts about household consumption patterns in India is the high
rate of growth of branded edible oils. Even today, especially in rural India and
small towns, the majority of households purchase cooking oil from the nearby oil
press or the grocer who sells unbranded oil that comes in wholesale packs. Till
about fifteen years ago branded cooking oils were seen to be an item of middle
class and elite consumption, mostly produced by multinational companies through
their Indian arms. Dhara, with its Operation Golden Flow changed these traits of
the Indian edible oil market forever. Created and conceived 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 branded edible oils has
almost doubled. The total size of the indigenously produced and branded edible oil
consumer market in India is about 360,000 metric tonnes per year, consumed by
some 29 million households (Source: ACNielsen Retail Audit). In the highly
competitive consumer-pack user segment for branded edible oils, Dhara has the
largest market share at 10.9%. It has a total consumer base of 3.05 million
households (Source: IRS 2002), while its turnover exceeds Rs. 3.3 billion.
The market is segmented by diverse regional preferences for specific edible oils.
Groundnut and sesame oil hold sway in West and South India; even though
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IIPM, New Delhi 31
coconut oil is also popular in some segments of the latter 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 is used virtually all over the
country. Significantly, Dhara is the first brand to produce all these varieties as part
of an umbrella strategy.
Achievements
Dhara is at the forefront of the branded edible oil market, leading its consumer
pack segment. It has also been rated by ACNielsen as being among the top five
fastest growing brands in the FMCG sector in India in 2003. Through its value
creating strategies and emphasis on purity and quality, the brand has consistently
created benchmarks for the entire edible oil industry, including Indian subsidiaries
of multinational brands. It has successfully addressed the changing needs and tastes
of the consumer and introduced variants from time to time. Dhara can also justly
take credit for bringing world-class practices in packaging of edible oil to the
country. It introduced tamper-proof aseptic packaging to guarantee that only the
purest quality reached consumers. Even today, Dhara is the only edible oil in the
country that uses the tetra pack technology with six-layer packaging and
undertakes more checks and tests than any other brand in the industry. Tetra packs
allow the oil to be packed without the use of additives for maintaining shelf-life.
Dhara's light weight and hygienic five-layered PET jar with a double handle
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IIPM, New Delhi 32
arrangement was developed during 1997/98, making the clear refined sunflower oil
visible to consumers, further adding to their confidence in the brand. This pack has
won a series of awards – India Star 98 in Mumbai, Asia Star 98 in Beijing.
PREFERABLE BRANDS& PRICE
BRANDS PACKING PRICE
GINNI
1 LTR Rs. 575LTR Rs. 28515LTR Rs. 930
GEMINI
1 LTR Rs. 585LTR Rs. 27515LTR Rs. 825
MAHAKOSH
1 LTR Rs. 53.755LTR Rs. 27015LTR Rs. 777
AMBUJA
1 LTR Rs. 52.505LTR Rs. 26515LTR Rs. 745
FORTUNE
1 LTR Rs. 625LTR Rs. 33015LTR Rs. 930
GOKUL
1 LTR Rs. 505LTR Rs. 27015LTR Rs. 740
DHARA (fit n fine)
1 LTR Rs. 545LTR Rs. 28515LTR Rs. N.A
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IIPM, New Delhi 33
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 that’s why unable
to sell the local brand .
2) Leakage problem : -The retailers also complained about the leakage problem
faced by them in the cartoons of Ginni and no replacement, but other
companies are giving them full replacement of leakage packages.
3) Feed back problem : - The retailers also complained that they get very less
feed back from the company, like whenever any scheme is introduced by the
company, they are not even made aware of the schemes.
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
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IIPM, New Delhi 34
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 that even
sometimes retailers don’t even tell about new schemes
4) DISCOUNT schemes :- customers complaint that there are very less discount
schemes on soya oil as compared to other refined oil
MARKETING STRATEGY of ABC
The market strategy of the firm is a complete and unbeatable plan or an instrument
designed specially for attaining the marketing objective of company. Company believes
in the following strategy,
Plan. A solid project plan is a requirement for any project. Company believes, it
should include a statement of purpose, success evaluation criteria, risk analysis,
and a work breakdown structure that clearly identifies task accountability and
project milestones.
Communicate. Getting commitment and buy-in from beginning to end is
essential. Rumor and speculation shouldn't be allowed to derail a project. A plan
communicating the benefits and expected outcomes in clear, consistent messages
to all stakeholders can alleviate negative gossip.
Alumni ID: DS79-M -540
IIPM, New Delhi 35
Research. There are a many ways to gather potential competencies for a model
and it's essential that the model "fit" the unique attributes of the organization. Key
skills, knowledge, abilities and other characteristics may be gathered internally
from current jobholders and supervisors through surveys, focus groups,
observation or interviews. Other organizations may start with a commercially
available model and customize from there.
Draft. Developing a model is a creative process and the typical organization goes
through several iterations before settling on content and structure. Typically,
organizations begin by developing an initial skills dictionary which is further
refined as role profiles are developed.
Test. Competency models must be validated to ensure that the right competencies
have been identified. A pilot project or validation study can determine the
competencies most closely related to high performance and eliminate those that
are irrelevant.
Launch. No matter what the project purpose - employee selection, skills
inventory, employee development, career or succession planning - it's important
to keep lines of communication open, track progress carefully and ensure
accountability of all project team members.
Evaluate. When the competency model has been used to assess employees, the
results of the assessment should be analyzed to determine the appropriate actions.
The model itself should also be analyzed to identify what worked well and what
needs to be changed.
Alumni ID: DS79-M -540
IIPM, New Delhi 36
Alumni ID: DS79-M -540
IIPM, New Delhi 37
OBJECTIVE OF THE STUDY
Research would be carried out based on these objectives.
1) To find out customer preferences towards different brands of soyabean oil
2) Which are prominent brands are out there in the market?
3) To study and understand the competency model adopted by the Amrit
banaspati company ltd.
4) To investigate the various strategies and practices adopted by various edible
oil companies in order to promote their brand.
5) To know why the branding of a company is important in acquiring new
customers.
6) To study overall edible oil market in India.
7) Suggest new strategies to enhance its overall market share in edible oil
market.
SCOPE & LIMITATIONS OF THE STUDY
The scope of the report includes assessing market potential, negotiation with
collaborators and wholesalers, company’s strategies to retain customer, product planning
etc.
It is a hard fact that each study suffer from some limitations. So is the case with this
study. One of the limitations of the study is, as the information is collected from the
retailers, the monthly sales figure given by them is based entirely on their own judgment.
So a few of them might have given the wrong figures related to their monthly sales.
Another limitation was that some of the retailers were busy and could not give
appropriate information. And also very few retailers did not want to share any
information.
Alumni ID: DS79-M -540
IIPM, New Delhi 38
Another limitation of the study was the customers who were personally
interviewed did not want to share the actual data as few of them were giving fake
data.
The sample size being very small , that is , only 150respondents, limited the scope
of RESARCH 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 AND METHODOLOGY
Primary source
The Data was collected from
Mr. Prashant Mohan
Mr. Janak Raj Lekhi
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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IIPM, New Delhi 39
DATA COLLECTION TOOLS
1. STRUCTURED QUESTIONNAIRE
I had questionnaires for the Retailers and for the consumers. 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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IIPM, New Delhi 40
Alumni ID: DS79-M -540
IIPM, New Delhi 41
Analysis of Retailer Responses
QUES :- which brands of soyabean oil are available in the shop?
Out of 50 retailer respondents few retailers were only stuck to one soyabean brand and
maximum out of them were having or were dealing in almost all the brands
Alumni ID: DS79-M -540
Fortune 40
Nature fresh 25
Soyumn 32
Ginni 10
Dhara 20
Various soyabean brands
available
fortune
31%ginni8%
dhara
16%
soyumm25%
nature fresh20%
fortune
nature fresh
soyumm
ginni
dhara
IIPM, New Delhi 42
QUES:- which soyabean oil has maximun sale per month?
Out of the 50 retailers 61% were of the view that fortune is the market leader
QUES :- which soyabean oil has maximum sale in different quantity packs?
Alumni ID: DS79-M -540
Fortune 32
Nature fresh 5
Ginni 1
Dhara 1
Soyumm 14
soyabean oil with maximum sale
nature fresh
9%
dhara2%
ginni2%
fortune61%
soyumm 26%
fortune
nature fresh
ginni
dhara
soyumm
I ltr 5ltr 15ltr
40 25 32
Soyaben Oil with maximum sale
I ltr41%
5ltr26%
15ltr33% I ltr
5ltr
15ltr
IIPM, New Delhi 43
As shown in the diagram 1ltr packing is the most saleable and it holds 41% share of the
total.
QUES :- Rank of the followings attributes in soyabean oil between 1-5 according to
customer importance
(5 being maximum)
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 most important factor that
influences buying decisions of various customers .
QUES :- what influences customers to buy the brand?
Alumni ID: DS79-M -540
Advertising 4
Attractive
packaging 5
Retailer 4
Shop display 7
Pricing 28
Discount 30
Health conscious 40
IIPM, New Delhi 44
Most of the customers consume soyabean oil because either they are suffering from any
heart disease or are health conscious and the ratio covered is 35%.
QUES :- what are customer's feedback regarding soyabean oil?
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?
Alumni ID: DS79-M -540
Customers are influenced by
advertising3%
attractive packaging
4%
retailer3%
shop display
6%pricing
24%
discount25%
health conscious
35%
advertising
attractivepackagingretailer
shop display
pricing
discount
healthconscious
Yes 38
No 12
IIPM, New Delhi 45
Many of the retailers said that they are satisfied with the incentives they are getting,
76%retailers are satisfied.
QUES :- Are you satisfied with the services of the brand you are selling?
60% of the retailers said that they are satisfied with the brands the are selling.
Alumni ID: DS79-M -540
SATSFIED WITH THE INCENTIVES
yes76%
no24%
yes
no
Yes 30
No 20
SATISFIED WITH THE SELLING BRANDS
yes60%
no40% yes
no
IIPM, New Delhi 46
If no then what are the suggestions you will give to the company?
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.
Alumni ID: DS79-M -540
Transportation 13Scheme 16Margin 19Credit 2
Suggestions
transportation26%
scheme32%
margin38%
credit4% transportation
scheme
margin
credit
IIPM, New Delhi 47
ANALYSIS OF CUSTOMER RESPONSES
QUES :- Do you use soyabean oil?
Customers respondents agreed that they use soyabean oil and out of 100 respondents
62%agreed.
QUES :- If yes (check) the brand you use?
In consumption as well
as preferable
brands
FORTUNE leads with
41%
Alumni ID: DS79-M -540
Yes 62
No 38
CONSUMPTION OF SOYABEAN OIL
yes62%
no38% yes
no
Fortune 25
Nature fresh 12
Soyumm 15
Ginni 3
Dhara 13
Most used brands
IIPM, New Delhi 48
QUES :- Rank the following attributes according to their importance to you?
(5 being maximum)
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)?
Alumni ID: DS79-M -540
Advertisment 3
Attractive
Packaging 4
Retailer 12
Shop display 5
Pricing 21
Health conscious 17
IIPM, New Delhi 49
PRICING is again the leading factor followed by the customers who consume just
because they are health conscious.
QUES :- If particular brand is not available with retailer, you will. . . . .?
Drop the idea of buying it 3
Go to another retailer outlet 60
Try another brand 37
Alumni ID: DS79-M -540
DECISION ARE INFLUENCED BY
5% 6%19%
8%35%
27%
Advertisment
AttractivePackagingRetailer
Shop display
Pricing
Health conscious
If Particular brand not avaliable
0%0%0%
3%
60%
37%
drop the ideaof buying it
go to anotherretail outlet
try anotherbrand
IIPM, New Delhi 50
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
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?
Alumni ID: DS79-M -540
PRICE FOR 1LTR
10%15%
62%
13%
below rs 30
between 30and 40
between 40and 50
more than 50
Yes 39No 23
IIPM, New Delhi 51
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 or a product free,
whould it affect you purchase decision?
Alumni ID: DS79-M -540
WILL YOU BUY IF YOUR BRAND IS EXPENSIVE
yes 63%
no37% yes
no
YES 47
NO 15
SALES PROMOTION EFFECTS BUYING
DECISIONS
no24%
yes
76%
yes
no
IIPM, New Delhi 52
Almost 75% customers agrred that sales promotion schemes do effect the buying
decisions.
QUES :- What size of packaging do you normally buy?
1LTR packaging is mostly sold in the market.
QUES :- Are you happy with the kind of soyabean oil brands available in india,
today?
Alumni ID: DS79-M -540
1ltr 37
5ltr 12
15ltr 13
PACKAGING MOSTLY SOLD
1ltr60%
5ltr19%
15ltr21%
1ltr
5ltr
15ltr
YES 37
NO 25
IIPM, New Delhi 53
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.
Alumni ID: DS79-M -540
SATISFIED WITH THE BRANDS SOLD IN INDIA
yes60%
no40% yes
no
IIPM, New Delhi 54
SUGGESTIONS OF THE RETAILERS & CUSTOMERS
Alumni ID: DS79-M -540
IIPM, New Delhi 55
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.
CONCLUSIONS & RECOMMENDATIONS
1) Leakage problem should be taken care of and the retailers should be full
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.
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
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IIPM, New Delhi 56
quality. More emphasis should be laid on the quality to avert such
circumstances.
4) Regarding the introduction of new products, the company should go for
aggressive marketing. There is a lot of potential in Soya Refined oil segment,
but retailers are not even aware of our product.
5) Whenever any consumer oriented scheme is introduced, the scheme should be
directly targeted to that person who actually uses i.e., house wives.
6) Non monetary incentives should be also given to the retailers in each and
every city. They should be given glow sign boards and other sales
promotional materials. This will boost up their spirits.
MRP problem during the days of rising prices should be taken care. In this
situation if retailers are getting the products on a price higher than the MRP
they can’t sell it more than the MRP. So this problem should be looked after
carefully.
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Bibliography
Business today
GREEN AND TULL , Marketing Research
WEBSITES
www.Google.co.in
www.adani.com
www.amribanaspati.com
www.Soyumm.com
www.cargill.com
www.dharaproducts.com
www. Naturefresh.com
www.fcamin.nic.in
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ANNEXURE
Alumni ID: DS79-M -540
IIPM, New Delhi 59
Questionnaire
(Retailers)
Name
Gender Male Female
Age 18-24 25-40 41-55 above 56
Qualification
Location
QUES:- which brands of soyabean oil are available in the shop?
Alumni ID: DS79-M -540
Fortune
Nature fresh
Soyumn
Ginni
Dhara
IIPM, New Delhi 60
QUES: which soyabean oil has maximun sale per month?
Fortune
Nature fresh
Ginni
Dhara
Soyumm
QUES: which soyabean oil has maximun sale in different quantity packs?
1 Ltr
5 Ltr
15 ltr
QUES :- Rank of the followings attributes in soyabean oil between 1-5 according to
customer importance
(5 being maximum)
GRADING 1 2 3 4 5
Taste
Quality
Packaging
Brand Image
Pricing
Alumni ID: DS79-M -540
IIPM, New Delhi 61
QUES :- what influences customers to buy the brand?
Advertising
Attractiveness
Packaging
Retailer
Shop display
Pricing
Discount
Health conscious
QUES :- what are customer's feedback regarding soyabean oil?
QUES:- Are you satisfied with incentives from the oil company?
Yes
No
Alumni ID: DS79-M -540
IIPM, New Delhi 62
QUES :- Are you satisfied with the services of the brand you are selling?
Yes
No
If no then what are the suggestions you will give to the company?
Transportation
Scheme
Margin
Credit
QUES :- Any suggestions to the company?
Thank you for your kind co-operation
Alumni ID: DS79-M -540
IIPM, New Delhi 63
Questionnaire(Customer)
Name
Gender Male Female
Age 18-24 25-40 41-55 above 56
Qualification
Location
QUES :- Do you use soyabean oil?
Yes
No
QUES :- If yes (check) the brand you use?
Fortune
Nature fresh
Soyumm
Ginni
Dhara
Alumni ID: DS79-M -540
IIPM, New Delhi 64
QUES :- Rank the following attributes according to their importance to you?
(5 being maximum)
Grading 1 2 3 4 5
Taste
Quality
Packaging
Brand image
Price
QUES :- What influenced you to buy the above stated brand(s)?
Advertisement
Attractiveness
Packaging
Retailer
Shop display
Pricing
Health conscious
Alumni ID: DS79-M -540
IIPM, New Delhi 65
QUES :- If particular brand is not available with retailer, you will. . . . .?
Drop the idea of buying it
Go to another retailer outlet
Try another brand
QUES :- What according to you a suitable price for 1 ltr which is of good quality?
Below Rs 30
Between 30 and 40
Between 40 and 50
More than 50
QUES :- If your brand is few Rs expensive than it, then will you go for it?
Yes
No
QUES :- A sale promotion scheme like rs 10 off , 250 gms extra or a product free,
whould it affect you purchase decision?
Yes
No
Alumni ID: DS79-M -540
IIPM, New Delhi 66
QUES :- What size of packaging do you normally buy?
1 ltr
5 ltr
15 ltr
QUES :- Are you happy with the kind of soyabean oil brands available in india,
today?
Yes
No
If no then why?
Thank you for your kind co-operation
Alumni ID: DS79-M -540