A STUDY ON CUSTOMER PREFERENCE AND AWARENESS OF RICE BRAN OIL IN SIVAGANGAI DISTRICT

Dissertation submitted to Alagappa University in partial fulfillment of the degree of Master of Business Administration

Submitted by

R.SATHYA

Register No: 093171008

CERTIFICATE

The dissertation entitled “A STUDY ON CUSTOMER PREFERENCE

AND AWARENESS OF RICE BRAN OIL, IN SIVAGANGAI

DISTRICT” submitted by Selvi. R. SATHYA [ Register Number:

093171008 ] is the original work of the candidate.

Place:

Date:

R.Sathya

Register No: 093171008.

MBA General

STATEMENT BY THE CANDITATE

The project entitled “A STUDY ON CUSTOMER PREFERENCE AND

AWARENESS OF RICE BRAN OIL, IN SIVAGANGAI DISTRICT” being submitted by

me is my original work.

Place: Karaikudi [R.SATHYA]

Date:

CONTENTS

CHAPTER TITLE PAGE NO

I Introduction 1

II Profile of the company 4

III Special concepts and Review of Literature

11

IV Research Methodology 22

V Data Analysis and Interpretation 26

VI Findings, suggestions and Conclusion 34

Appendices

A. Bibliography 38

B. Interview Schedule 51

CHAPTER – I 1

INTRODUCTION

Rice is one of the world's most important food crops and more than half of the

people in the world eat rice as the main part of their diets. Young rice plants have a

bright green color and as the grain ripen the plants turn golden yellow. A typical rice

kernel is ¼ to 3/8 inches long. Rice bran is an incredible source of the vitamins,

minerals, amino acids; essential fatty acids and antioxidant nutrients that help fight

disease and promote good health. It's no wonder the healthy oil that comes from rice

bran is becoming so successful at replacing hydrogenated oils containing tans fat.

Research is ongoing with this invaluable food source and scientists have found

components critical to human health. Rice bran oil is ideal oil for margarine and

shortening. The flavor gives the good palatability and the desired prime form crystal

provides smooth plasticity and spreading qualities.

Since rice bran oil contains three different kinds of natural antioxidantsnamely

Tocopherol, Tocotrienol and oryzanol some of themajor antioxidants companies have

recently switched their basic oil to rice bran oil. Delicate yet flavorful, rice bran oil just

may be the world's healthiestEdible oil, containing vitamins, antioxidants and other

nutrients - rice bran oil is rich in vitamin E complex, tocopherols and tocotrienols, a

unique antioxidant known as gamma oryzanol, high quantities of phytosterols,

polyphenols and squalence. Rice bran has a very good shelf life compared to other

cooking oils because of these antioxidants.

2

Rice bran oil is extremely light, versatile and delicious use it to fry, sauté,

in sated dressings, baking, dipping oils and wherever you use cooking oil. Once

you use it you will be amazed cooling light and healthy is also the best

tasting.Rice bran oil is a source of vitamin E complex, antioxidants and

otherMicronutrients to help fight free radicals. Rice bran oil! Has the best balance

of saturated, monounsaturated and polyunsaturated fats and recommended by

such organs as the American Heart Association and the world health

organization. Foods cooked with California rice oil absorb upto 20% less oil! Less

oil absorbed results in reduced calories, better, lighter tasting food and enhanced

flavor and payability. Less oil absorbed also makes it more economical.

Rice bran oil has been popular cooking oil in Asian Countries forDecades,

where there is measurably lower level of cancer, diabetes, obesity and heart

disease than in the United States. Studies show all of these conditions are

promoted from the use of hydrogenated oils containing Tran’s fatty acids that are

so predominantly used in the USA. Many studies have also shown the unique

Cholesterol lowering ability as well as many other health benefits from the use of

rice bran oil.Solvent extraction industry is the process of extracting crude edible

Grade oil from materials such as rice bran, Hexane etc. Oil is selling at the price

of ghee; they say this statement is not far from Reality.

3

Hence India being largest producer of rice bran oil is in a great position to

capitalize on this position and reap huge benefits. India is the fifth largest oil

seeds producer after United States, China, Brazil and Argentina harvesting 20-22

million tones of various oil seeds against the world production of about 330

million tones.

India still retains the largest producer of status of sesame seeds, linseeds,

castor seeds and safflower and the second largest position for groundnut in the

world. Innumerable verities of oil seeds cultivated along with extensive range of

minor and free origin oil seeds generated in the country are another distinctive

feature of the extensive range of minor and free origin oil seeds generated in the

country is another distinctive feature of the Indian oil seeds economy. Indian

vegetable oil industry is consisting of 50,000 oil mills, 600 solvent extraction

units, 500 vegetable oil refining and 250 vanaspati units spread across the

country, crushing oilseeds and processing vegetable oils.Domestic turnover of

the vegetable oil industry is Rs. 70,000 crores (US $ 16 billion) and import-export

of about Rs. 15,000 crores (US $ 3.5 billon) Today, India is also the largest

producer of rice bran oil and producing about 700,000 tones of rice bran oil and

promoting it as 'Heart Friendly Health Oil' in the country.

4

Rice bran oil is natural oil that is created using the hull of the rice grain.

Considered to be rich in antioxidants and several vitamins, rice bran oil is used

for cooking as well as in the creation of creams and other skin care products.

When prepared as a cooking oil, the rice oil will usually keep for anywhere from

six months to a year when stored at room temperature and out of direct sunlight.

One of the advantages of using rice bran oil in cooking is that the oil has a

high smoking point. This means the oil is ideal for frying foods without running

the risk of overheating and burning the food before the meat or coated

vegetables are cooked all the way through. Many cooks prefer rice bran oil

because the ability to achieve a crunchy texture and a uniform color to the

coating enhance the visual appeal of the finished product.

The creation of rice bran oil involves the pressing of the hull or bran of the

rice grain. By pressing on the hull, small amounts of oil can be extracted and

collected. The oil released from the rice bran contains a hefty amount of Vitamin

E as well as fatty acids that lend a great deal of taste to the oil. The presence of

a number of antioxidants also help to make rice bran oil a healthier alternative for

use in salad dressings and as an ingredient in baked goods.

5

Another attribute of rice bran oil is the mild degree of flavor that the oil

lends to many recipes. When used in drying, the oil gently enhances any herbs

and spices that are used in the coating of the meat or vegetables. As an

ingredient in a salad dressing, rice bran oil provides a slightly sweet taste that

mixes very well with flavored vinegars and various spices. When used as oil in

baked goods, the rice bran oil can help to provide a slightly nutty flavor to the

overall taste of the baked good without interfering with any flavoring that was

included in the batter.

While rice bran oil is thought to have originated in Japan, the oil has been

used in many different countries. Until recent years, purchasing rice bran oil in

the United States required a trip to a local health food store. However, as more

people search for healthier ways to prepare their favorite foods, rice bran oil has

begun to appear on the shelves at many larger supermarket chains.

6

Many cooks prefer rice bran oil because the ability to achieve a crunchy

texture and a uniform color to the coating enhance the visual appeal of the

finished product. The creation of rice bran oil involves the pressing of the hull or

bran of the rice grain.

Brans actually come in an assortment of colors, ranging from the almost

black bran of black rice to reddish brans like those found on rice. Brown rice can

come in long and short-grained varieties, and it has a wide range of flavors,

depending on the cultivar.

Fat Requirements:

Fat consumption primarily occurs through salad and cooking oils, followed

by frying fats and bakery shortenings. Now let us look into the quality and

quantity of fat required in a balanced diet. According to the American Heart

Association (AHA) the optimum intake of fat for an adult is 30% of the total

caloric intake, to come from fat.

7

Understanding Fat:

The quantity and quality of fat in the diet play a critical role in maintaining human

health. Several studies in literature have directly implicated the amount and type of fat

intake to specific diseases such as cardiovascular disease, hypercholesterolemia,

cancer, high blood pressure and obesity. The largest contributor to this is TRANS FAT.

› Fats and Oils as Nutrients

› Functionality of Dietary Fats

› Fat Requirements

› Rice Bran Oil (RBO)

› Nutritional Qualities of Rice Bran Oil (RBO)

› Hypocholesterolemic Effect of RBO

› Safety of RBO

› Taste and Acceptability

8

It means an adult ingesting 2000 calories of diet should be getting 600

calories (30%) or 60-65 grams of fat per day. This quantity of fat per day is

required in a balanced diet to maintain good health.

Coming to the quality of fat, the 30% of fat should include, not more than

8-10% Saturated fat (SFA), 10-12% Monounsaturated fat (MUFA) and not more

than 10% of Polyunsaturated fat (PUFA). Among the 10% PUFA at least 3%

should come from n-3 fatty acids (Omega 3), which are part of the PUFA family

and as 0% Trans Fat or as little as possible. Thus the quality and quantity of fat

requirements to the body is well defined.

Nutritional Qualities of Rice Bran Oil (RBO):

Fats and oils act as a heat transfer medium, but also become a

component of the food. Because of this dual function, the oil must meet a number

of requirements. It must have good thermal and oxidative stability. It must also

have good flavour, good shelf life and acceptable cost. Finally, it must have

consumer appeal.

9

There are two types of fats we consume in our daily diets. One is invisible

fat, which comes from all natural fat present in vegetables, fruits, cereals, poultry,

meat, fish and other foods. The other one is visible fat, which is the cooking

medium, salad oils and other added sources of oils. We have no control over the

invisible fat intake. However, the quantity and quality of visible fat intake need to

be controlled to maintain better health.

Comparing known vegetable oils and rice bran oil to the fatty acid profile

recommended by the American Heart Association, we find RBO is the closest to

the AHA recommendations. AHA recommendations are that SFA in the diet

above 10% is not good, as it tends to raise the cholesterol levels. SFA below this

10% level is good for health. MUFA at 10% and above is good as it maintains

cholesterol levels, but below this level is not good for health. PUFA at the 10%

level is good, but too much of PUFA is known to generate free radicals and aid

carcinogenesis and hence is not good for health. PUFA below 10% is not good,

as the body needs essential fatty acids for its metabolism.

10

Another component of fats and oils is the unsaponifiable fraction (unsap),

which contains the antioxidants and micronutrients of the oil. RBO has 4.2% of

unsap, whereas all other oils have unsap less than 1-2%. It is the combination of

an excellent essential fatty acid profile and a high unsaponifiable fraction that

brings about cholesterol reduction.

In addition to this RBO does not produce any allergenic reactions when

ingested, as does several oils. RBO has the highest cholesterol reduction

capacity of any other oil.

RBO unsaponifiable fraction is rich in vitamin E complex, tocopherols and

tocotrienols, a unique antioxidant known as gamma oryzanol, high quantities of

phytosterols, polyphenols and squalene. RBO has a very good shelf life

compared to other cooking oils because of these antioxidants. These compounds

are nutritionally very valuable and it has been shown to be responsible for the

hypocholesterolemic effect. RBO appears to be the richest source of tocopherols

and tocotrienols. Hence RBO not only has a good fatty acid profile, but also is a

rich source of antioxidants and micronutrients.

11

Safety of RBO:

A safety evaluation of RBO was carried out by the FDA/WHO protocol. It

was proved to be safe for human consumption, without any side effects. RBO

has earned GRAS status in the U.S.A.

Taste and Acceptability:

Foods were prepared in several ways, such as deep fried, pan fried,

baked foods and salad dressings in rice bran oil. Similar foods in peanut oil, palm

oil, soybean oil, olive oil and corn oil were prepared and compared. Taste panel,

color, appearance, smell and texture were the criteria for the acceptability of the

products. RBO prepared foods scored highest in all the panels, also rated

highest shelf life when compared to the other products. RBO was found to be

more economical as less oil is absorbed in the food, almost 20% less when

compared to other oils. This lower absorption rate is related to the viscosity of

RBO, a physical quality of the oil, which makes it light and non-sticky. The high

smoke point prevents the isomerization and polymerization of the fatty acids and

also the generation of free radicals at high temperatures. There are many

beneficial aspects of RBO that attracts consumers to utilize RBO in their diet.

12

CHAPTER II

COMPANY PROFILE

MALAR SOLVENT EXTRACTION PVT LTD, was incorporated in the year 1993

with the object of establish the solvent extraction plant & other related activities in field

of edible oils. The Company has successfully implemented its first unit of solvent Plant

and achieved 95% of capacity utilization within 6 Months from the date of commercial

production by achieving a turnover of Rs.250Lakhs with this achievement & considering

the increasing demand for oil especially edible oils in India the company has already

successfully expanded to another additional unit of a higher capacity, the refinery is

already in the process of completion and within a period of 3-4 Months will Commence

Commercial Production.

Link between service quality and customer satisfaction

Many researches have realized the interrelated values of service quality and

customer satisfaction. Corrin and Taylor (1992)19 consider that service quality and

customer satisfaction “share a close relationship”. Service quality is the key to measure

user satisfaction (Pitt et al., 1995)20. Taylor and Baker (1994) and Rust and Olivier

(1994) identified several factors that precede customer satisfaction. They argued that

there are 5 antecedents that contribute to satisfaction:

13

Clear understanding of customer needs and expectations, perceived value,

service quality, internal satisfaction and complaint management. This research showed

that Service quality is one major attribute of satisfaction. It is said by Olivier (1993) that

service quality is a casual antecedent of customer satisfaction, due to the fact that

service quality is viewed at transactional level and satisfaction is viewed as an attitude.

Dabholkar et al. (1996)21 reported that the service quality divisions are related to

overall service quality and or customer satisfaction. Fornell et al., (1996)22 expressed

that satisfaction is a consequence of service quality. To another extent, other

researches suggested that in service field service quality and customer satisfaction

(also called the “construct”) are separate but distinct constructs. (Boulding et. al.,

1993)23. They argued that service quality has specific dimensions judgments while

customer satisfaction can be resulted from any dimension, whether or not it is quality

related.

Tangibles Reliabilities Responsiveness Communication Creditability Security Competence Courtesy Understanding/knowing the customer

14

Refining Process :

 

To make crude rice bran oil to be edible oil, Gum, Free Fatty Acid, color

pigment, odor- volatile matter and wax have to be removed from Rice Bran Oil.

Conventional Refining Process

 

 Free Fatty Acid in crude rice bran oil is removed by neutralize the oil with caustic

soda and become soap stock. In the same time, gamma Oryzanol, Tocopherol,

Tocotrienol and some color pigment also been removed from rice bran oil. Refined rice

bran oil from this process has lighter colour, less gamma-Oryzanol, less Tocopherol,

less Tocotrienol.

15

Project Cost & Finance

Cost of the Project Rs. In lacks

a) Land 5.65

b) Building 50.00

c) Plant & Machinery 350.00

d) Miscellaneous fixed Assets --

e) Preliminary and Pre-Operative expenses 10.00

f) Contingencies & deposits 10.00

g) Working Capital Margin 25.00

------------

Total 450.65

------------

Means of finance

a) Promoters Contribution 154.00

b) Term loan 279.60

c) Grand from Ministry of food Processing 17.05

------------

Total 450.65

------------

16

Project and Product

The directors, who have got experience in oil business also thought about the

diversification and decide to put up their first unit of solvent extraction unit in the year

2003 and able to run it successfully with a 95% Capacity utilization within 6 Months with

this achievement and due to demand for oil have already set up other solvent Plants.

The Second unit of Solvent Plant is also having a Capacity of 150/200 Metric

tons per day of Soya beans Seeds and rice bran/oil cakes processing. The finished

Products are edible grade solvent oils and oil extractions.With the successful running of

SEP unit 1 with 95% capacity utilization and the completion and installation of SEP unit

11 with in the targeted time, the overall Production of Solvent extracted oils will be

around 60 to 75 Metric tons per day. This oil we may have to sell to refineries for further

processing to fit to become human consumption.

The directors thought that with the setting up of refinery they could directly enter

into an ever expanding consumers market to sell their refined edible oils. With this

intention they have decided to set up new edible refinery unit. With the capacity 75

metric tones/ day to process refined oils so that the new refinery unit will consumer the

entire oil produced in both solvent Plants. By setting up new refinery, raw material for

refinery will be readily available.

17

Location & Site details

The propose plant will be located at Aranthangi Road, Puduvayal-630108.

Sivaganga District, Tamilnadu State. The present Solvent extraction unit isworking in

the same premises.

The company is having necessary infrastructures like roads, compound, Security

etc., Land development work comprising leveling undulation, formation of internal road,

and etc has already been taken up. The location is suitable for the proposed activity

considering the proximity to raw material Source, availability of labour, transport,

communication & other infrastructure.

The above said land is sufficient for the following.

a) Factory building

b) Godown

c) Pollution control & other utilities

d) For future expansion

The company main plant i.e. Refinery Plant & enzymatic.The promoters have

finalized for supply of thermic fluid heating system & chilling. Plant with M/s Thermax

Ltd. These are Major production Machinery & the suppliers are highly reputed. The

detailed list of plant & machinery is enclosed herewith the major machineries are

expected to be delivered.

18

Raw materials & consumables

The main raw materials are rice bran/oil Cakes. The unit requires4600 mts of rice

bran/oil cakes at installed capacity per annum. TheProposed location is having a major

paddy growing area. There are about 200 rice Mills & oil Mills & around Further we can

procure rice bran/oil Cakes from surrounding district of oil Mills & Rice Mills are situated

but do not have any solvent extractions plants which are running in these areas.

Crude rice bran oil is the raw material of refined bran oil manufacturing:

Crude rice bran oil is the raw material of refined bran oil manufacturing. SsIt

contains about 1.5% or more gamma-oryzanol, a group of ferulate esters of triterpene

alcohols and phytosterols. The high antioxidant property of gamma-oryzanol has been

widely recognized. Studies have shown several physiological effects related to gamma-

oryzanol and related rice bran oil components. These include its ability to reduce

plasma cholesterol (Lichenstein et al., 1994), reduce cholesterol absorption and

decrease early atherosclerosis (Rong et al., 1997), inhibit platelet aggregation

(Seetharamaiah et al., 1990), and increase fecal bile acid excretion (Seetharamaiah and

Chandrasekhara, 1990). Oryzanol has also been used to treat nerve imbalance and

disorders of menopause (Nakayama et al., 1987)

19

CHAPTER III

SPECIAL CONCEPTS AND REVIEW OF LITERATURE

BRAND

How a company 'positions' a brand is not necessarily how the consumer

perceives that brand. Brands allow marketers to add meaning to products and services,

but it is consumers who ultimately determine what a brand means. The sources of

brand meaning are many and varied, as are the ways in which meanings become

attached to brands. Brand Meaning takes a comprehensive and holistic look at how

consumers find and create meaning in brands. It explores the fundamental conscious

and unconscious elements that connect people with products and brands.

MARKET

In marketing, the term market refers to the group of consumers or organizations

that is interested in the product, has the resources to purchase the product, and is

permitted by law and other regulations to acquire the product. The market definition

begins with the total population and progressively narrows as shown in the following

diagram.

20

CUSTOMER

A customer (also known as a client, buyer, or purchaser) is usually used to refer

to a current or potential buyer or user of the products of an individual or organization,

called the supplier, seller, or vendor. This is typically through purchasing or renting

goods or services. However, in certain contexts, the term customer also includes by

extension any entity that uses or experiences the services of another. A customer may

also be a viewer of the product or service that is being sold despite deciding not to buy

them. The general distinction between a customer and a client is that a customer

purchases products, whereas a client purchases services.A person, company, or other

entity which buys goods and services produced by another person, company, or other

entity.

CONSUMER

Buys any goods for a consideration which has been paid or promised or partly

Paid and party promised, or under any system of deferred payment and includes any

user of such goods other than the person who buys such goods for consideration or

partly paid or partly promised, or under any system of deferred payment when such use

is made with the approval of such person but does not include a person who obtains

such goods for resale or for any commercial purpose

21

INCOME

Income is the consumption and savings opportunity gained by an entity within a

specified time frame, which is generally expressed in monetary terms. However, for

households and individuals, "income is the sum of all the wages, salaries, profits,

interests’ payments, rents and other forms of earnings received in a given period of

time." The amount of money or its equivalent received during a period of time in

exchange for labor or services, from the sale of goods or property, or as profit from

financial investments.

PRICE

In ordinary usage, price is the quantity of payment or compensation given by one

party to another in return for goods or services.A value that will purchase a definite

quantity, weight, or other measure of a good or service. As the consideration given in

exchange for transfer of ownership, price forms the essential basis of commercial

transactions.

It may be fixed by a contract, left to be determined by an agreed upon formula at

a future date, or discovered or negotiated during the course of dealings between the

parties involved. In commerce, price is determined by what (1) a buyer is willing to pay,

(2) a seller is willing to accept, and (3) the competition is allowing to be charged. With

product, promotion, and place of marketing mix, it is one of the business variables over

which organizations can exercise some degree of control.

22

It is a criminal offense to manipulate prices (see price fixing) in collusion with

other suppliers, and to give a misleading indication of price such as charging for items

that are reasonably expected to be included in the advertised, list, or quoted price. Also

called sale price and selling price.

PRODUCT

The noun product is defined as a "thing produced by labor or effort" or the

"result of an act or a process", and stems from the verb produce, from the Latin

produce (re) '(to) lead or bring forth'. Since 1575, the word "product" has referred to

anything produced. Since 1695, the word has referred to "thing or things produced". The

amount of money or its equivalent received during a period of time in exchange for labor

or services, from the sale of goods or property, or as profit from financial investments.

SEGMENT

Market segmentation is the process of grouping a market into smaller subgroups.

This is not something that is arbitrarily imposed on society: it is derived from the

recognition that the total market is often made up of submarkets (called segments).

These segments are homogeneous within (i.e. people in the segment are similar to

each other in their attitudes about certain variables). Because of this intra-group

similarity, they are likely to respond somewhat similarly to a given marketing strategy.

That is, they are likely to have similar feelings about a marketing mix comprised of a

given product, sold at a given price, distributed in a certain way, and promoted in a

certain way.

23

MACHINERY

A system of means and activities whereby a social institution functions; "the

complex machinery of negotiation"; "the machinery of command labored and brought

forth an order"Machines or machine systems collectively. Asystem of means and

activities whereby a social institution functions.

An assemblage of machines or mechanical apparatuses: the machinery of a

factoryhistorically, a device required moving parts to be classified as a machine;

however, the advent of electronics technology has led to the development of devices

without moving parts that many refer to as machines—the computer being the most

obvious example.

A machine is a device that uses energy to perform some activity. In common

usage, the meaning is that of a device having parts that perform or assist in performing

any type of work. A simple machine is a device that transforms the direction or

magnitude of a force.

SALES

A sale is the act of meeting prospective buyers and providing them with a product

or service in turn of money or other required compensation. Sales are an act of

completion of a commercial activity. The "deal is closed", means the customer has

consented to the proposed product or service by making full or partial payment to seller.

24

MONEY

Money refers to the definition of money. Money is a token or item which acts as a

medium of exchange that has both legal and social acceptance with regards to making

payment for buying commodities or receiving services, as well as repayment of loans.

In addition, money also functions as a standard of value and a store of value because

with the help of money, the value of various goods and services can be measured.

According to a small number of economists, money is a standard of deferred payment.

Money refers both to currency, specifically a large number of currencies that circulate

under the legal tender status, and different types of financial deposit accounts, for

example savings accounts, demand deposits, as well as certificates of deposit.

MATERIAL

Consisting of matter; not spiritual; corporeal; physical; as, material substance or bodies.

Artifact made by weaving or felting or knitting or crocheting natural or synthetic fibers;

"the fabric in the curtains was light and semitransparent"; "woven cloth originated in

Mesopotamia around BC"; "she measured off enough material for a dress"Things

needed for doing or making something;

25

"writing materials"; "useful teaching materials"concerned with or affecting physical as

distinct from intellectual or psychological well-being; "material needs"; "the moral and

material welfare of all good citizens"- Roosevelt.

DEMAND

The asking or seeking for what is due or claimed as due. A thing or amount

claimed to be due. The act of demanding; an asking with authority; a peremptory urging

of a claim; a claiming or challenging as due; requisition; as, the demand of a creditor; a

note payable on demand.

The right or title in virtue of which anything may be claimed; as, to hold a demand

against a person. A diligent seeking or search; manifested want; desire to possess;

request; as, a demand for certain goods; a person's company is in great demand.

PRODUCTION

The act or process or producing, bringing forth, or exhibiting to view; as, the

production of commodities, of a witness. That which is produced, yielded, or made,

whether naturally, or by the application of intelligence and labor; as, the productions of

the earth; the productions of handicraft; the productions of intellect or genius.

26

Review on Recent Trends in Rice Bran Oil Processing Mahua Ghosh Journal

of the American Oil Chemists' Society, 2007, Volume 84, Number 4, Pages

315-324

Abstract

Rice bran oil (RBO) is popular in several countries such as Japan, India, Korea, China

and Indonesia as cooking oil. It has been shown that RBO is an excellent Cooking and

salad oil due to its high smoke point and delicate flavor. The nutritional qualities and

health effects of rice bran oil are also established. RBO is rich in unsaponifiable fraction

(unsap), which contains the micronutrients like vitamin E complexes, gamma oryzanol,

phytosterols, polyphenols and squalene. However, the high FFA and acetone-insoluble

content of RBO made it difficult for processing. Therefore, in recent years, research

interest has been growing in RBO processing to obtain good quality oil with low refining

loss. This review article deals with detailed reports on RBO processing including

membrane-based techniques from the production and quality point of view.

Keywords Membrane based refining - Refining of rice bran oil.

27

Studies on the crystal growth of rice bran wax in a hexane mediumMahua

Ghosh and Sibdas BandyopadhyayJournal of the American Oil Chemists'

Society, 2005, Volume 82, Number 4, Pages 229-231.

Abstract

Rice bran oil (RBO) is well known for its high wax content (2–4%). A good

separation of waxes must be ensured through the formation of crystals that can be

removed with a minimal retention of oil to maintain high yields of refined oil. In the

present study, the form and size distribution of RBO wax crystals were investigated

using a laser diffraction technique. An attempt was made to study the effect of cooling

on growth and size distribution of RBO wax crystals in hexane medium, and it showed

that high cooling rate and low temperature induces the formation of a great number of

small nuclei. In addition, experiments were performed to evaluate the effect on the

growth of wax crystals of successive additions of gum and pure TG to the medium. The

entire experiment was designed to optimize the temperature and incubation time of wax

crystallization to facilitate the efficient separation of wax from crude RBO-hexane

miscella using membrane technology.

Key Words Crystal growth - crystal size - RBO wax.

28

Rice bran oil for edible purposes: a review. Authors Cornelius, J. A. Journal

Tropical Science 1980 publ. 1981 Vol. 22 No. 1 pp. 1-26

Abstract

This paper describes the problem of producing rice bran oil suitable for edible

purposes and discusses methods for overcoming the problem with particular reference

to bran stabilization by heat and controlled moisture content. It also considers the

characteristics of the crude oil and processing operations involved in producing fully

refined edible oil including salad oil, cooking oil, margarine and shortenings. Some

nutritional aspects of rice bran oil are discussed.

K. Waghray and S. GullaFood Technology, University College of Technology,

Osmania University, Hyderabad, Andhra Pradesh, India. E-

mail:kavitagl@rediffmail.com

Abstract

Taking into consideration the regional preferences of the local population to

sesame oil, the study was planned to exploit its antioxidant properties and to reduce the

high priced demand of the oil. Refined Oil was blended with soya bean oil, rice bran oil,

cottonseed oil, palmolein, mustard oil and corn oil in the ratios of 80: 20 and 20:80 and

muruku (deep fried Indiantraditional snack) and bobbatlu (shallow fried traditional

regional snack) were prepared with those blends.

29

Consumers who were conversant with the factors governing quality of the

products and raw oil blends were chosen as sensory panel. The present consumer

acceptance trials indicated no strong rejection of an oil blend in comparison with control.

In raw oils and in the products made with the blends sesame-rice bran blends of 80:20

and 20:80 and sesame-cottonseed blend of 80:20 and sesame palmolein blend of 20:80

were significantly better than control.

Keywords Consumer Acceptability Oil Blends.

Dirk Acevedol Healthl Nov 03, 2010

Read more: http://www.articlesbase.com/health-articles/gamma-oryzanol-review-

4026036.Rice Bran Oil is it the secret method vs. harmful cholesterol? Rice bran oil

Rice bran oil is specifically high in fatty acids and rich in unsaponifiables. It has many

anti-oxidizing attributes as well as some sunscreen attributes. Rice bran oil naturally

contains a high level of gamma oryzanol, a healthy mixture of ferulic acid esters.

Oryzan™ is processed by a non-conventional vegetable oil refining process to present

several exceptional properties. Rice Bran oil is absolutely perfect for heart healthy food

preparation.

30

CHAPTER IV

RESEARCH METHODOLOGY

Problem of the study

By seeing the rich growth in edible oil industry. The major competitors in the

current market in this segment are Saffola Gold, Ruchi Gold, and Gold Winner; with so

many brands in the segment the customer has a wide variety of choices. It is up to the

customer to make a choice as per his requirement but his choice can be influenced in

many ways. Before purchasing the oil, a customer look at various aspects like health,

price, quality, quantity & brand.

Objectives of the study

1) To evaluate the factors that influence consumer to purchase Rice Bran Oil Products.

2) To analysis the existing problems with the products.

3) To understand the health awareness about our products.

4) To analysis the consumer satisfaction

5) To know the people's awareness towards Rice Bran oil and popular

Product among the consumer (survey).

31

Scope of the study

The scope of this study is limited to Karaikudi city and with reference to Malar

Solvent Extraction Pvt, Ltd. and the survey is limit - to consumers of many more Cities.

The vastness of the industry and the wide consumer base is also one of the factors

affecting my study.

Method of Data Collection

Primary and secondary data have been collected and used to bring out this

project report:

Primary data have been collected through

By interviewing and close contact with the manager was personally met to get

more information regarding the following aspects:

a) History of the company.

b) Methods adopted by the company in promoting the product in the Market.

c) Annual turnover and demand for the product.

d) Administrations of sales.

e) Marketing mix strategy.

f) And other information.

32

Interview with the consumers

To know the consumers attitude towards the products, a questionnaire

Was prepared and administered to 100 users.

They were selected at random.

a) The facts affecting consumers to buy Malar rice bran oil.

b) Opinion about the oil.

c) To know the purchase method of the consumer.

d) To get opinion about the quality and other aspect of the oil.

e) To get suggestion for the improvement of the oil.

Limitations

The information provided by the company is assumed to be authentic. The data

and opinion collected are assumed to be objective. This study was done. Mainly through

the secondary data. Also, time limitation of the study. The survey is conducted only on

limited respondent.

33

Capterisation

Chapter 1: Deals with technical aspects of present study such as introduction about

the study, scope, objective of study, methodology, limitations of the Study

etc.

Chapter 2: This chapter deals with the company profile of products Malar Refined Rice

Bran oil.

Chapter 3: Information about rice brand and health benefits of Malar Refined Rice

Bran oil.

Chapter 4: Gives us the detailed information about the world scenarios

Chapter 5: This chapter discusses the introduction of marketing strategies and

marketing strategies adopted by the company and dealers.

Chapter 6: This chapter highlights analysis of survey data based on

Questionnaire.

Chapter 7: This chapter presents suggestions and conclusions.

34

CHAPTER V

DATA ANALYSIS AND INTERPRETATION

With the object of knowing consumer attitude towards refined rice bran

oil and to know the market share of various brands and also about the

Malar Solvent Extraction Pvt Ltd.

Refined Rice Bran oil Survey

Table 5.1: Table showing gender wise classification

Gender Number Percentage

Male 47 47%

Female 53 53%

Total 100 100%

Inference:

Table 5.1: Reveals that among the 100 respondents who are interviewed 47 (47%) are male and the reaming 53 (53%) are female.

35

AGE

Table 5.2: Table showing age groups of the consumers interviewed is presented

Age group

in years

Number Percentage

20-30

30-40

40-50

50 & above

12

32

34

22

12%

32%

34%

22%

Total 100 100%

Inference:

Table 5.2: About 12% of the respondents are in the age of 20-30, 32%

in the age group of 30-40, 34% are in the age group of 40-50& 22% in

the age group of 50 and above.

36

MARITAL STATUS

Table 5.3: The marital status of the consumers interviewed is presented

Marital status

Number Percentage

Married 78 78%

Unmarried 22 22%

Total 100 100%

Inference: The above Table 5.3, shows the No. of Married and

unmarried consumers among the 100 interviewed 78 members are

married (78%) & 22 members are unmarried (22%). By seeing the

above 3 tables it can be interpreted that a large No. of respondents are

of middle aged, married female members. As refined oil is a product

involved in cooking. As cooking is more done by the females? This

trend can be seen.

37

INCOME

Table 5.4: Showing the incomes of respondents

Income

(in Rs.)

Number Percentage

1000-5000 18 18%

5000-8000 32 32%

8000&above 50 50%

Total 25 100

Inference:

Table 5.4: About 18% of the respondents are having the income around rs.1000-5000,

32% are having the income around the rs.5000-8000, and 50% are having the income

around 8000 & above.

38

BRANDS OF OIL

Table 5.5: Showing brand preferred

Brand Number Percentage

Refined Rice Bran Oil

48 48%

Crude Rice Bran Oil 22 22%

Wax Oil 12 12%

Acid/Soap 18 18%

Total 25 100%

Inference:

Table 5.5: By there above table we can come to know that refined oil is

most commonly used type. And as lots of brand products are available.

Not one single brand has a significant market share.

39

MOTIVATING FACTORS

Table 5.6: Table showing factors motivating consumers

Factors Number (25) Percentage

Health 34 34%

Price 23 23%

Quality 31 31%

Quantity 12 12%

Total 100 100%

Inference:

The Table 5.6 shows us that the people first give preference to there and here family’s

health & they look at price before purchasing & the also motivate the consumers to buy

the product. About 34% of health factor motivated the consumers & about 23% of price

factor motivated the consumers and quality 31% motivated the consumers & about 12%

factor covers quality and brand.

40

QUANTITY

Table 5.7: Showing Quantity needed by the consumers

Liters Number Percentage

0-100 kgs 12 12%

5 Tons-10 Tons 39 39%

11Tons-15 Tons 31 31%

16Tons-25 Tons 18 18%

Total 100 100%

Inference:

Table 5.7: Most of the people during the survey about 12% of people prefers 0-100

Tons, 39% people prefer 5-10 Tons, 31% prefer 11-15 Tons & 18% prefer 16-25 Tons.

41

OPINION

Table 5.8: Showing opinions of the consumers towards 5 points.

Opinion Number Percentage

Excellent 42 42%

Good 46 46%

Satisfied 11 11%

Not Satisfied 01 01%

Bad 0 0%

Total 100 100%

Inference:

Table 5.8 shows us the opinions of the customer and most of the consumers opinion

about there refined oil is Excellent 42 (42%), good 46(46%) and satisfactory 11(11%).

42

CHAPTER-VI

FINDINGS, SUGGESTIONS AND CONCLUSION

On the basis of survey findings some suggestions provided to the company is:

Advertising

In the present world of technology, advertising plays the major role in marketing

of a product. Advertising is a social and business process responsible for the mass

communication of the information. !f the product is the lack. Advertising is the key to

open the product to the market. It is only one mediator between producer and ultimate

consumer, which makes the consumer to see, to think and to feel about the product and

it also, tempts the consumer to buy the product. Advertisement can popularize and

establish an image on the product and build up reputation and good will for the

producer. This show that in present world advertising can create wonders in the market

advertising may be by means of television or by using board cast media or by using

magazines as the media.

By survey it has been seen that most of the consumers prefer television

advertising as they spend most of their free times in watching television. So the

company gives more advertisement in Television and also through magazines,

newspapers, internet etc., to attract the new customers from the corner and corner of

the country.

43

Sales promotion

Sales promotion has been the fastest growing segment a promotion mix and has

become a major factor in success of marketing in recent years, "sales-promotion are the

achievements of short-terms marketing objectives by schematic means". Sales-

promotion is a direct and immediate inducement that adds an extra value to the product.

So it prompts the sale force, dealers and consumers to buy the product sales.

Promotion carried along with advertising and publicity creates effectiveness in the

selling activity the company has not undertaken the sales promotion at the expected

level. The company should give importance to the following sales promotion.

i. Free offers should be given such as if your buy one nail enamel you will get

another free

ii. By providing special discount during festival times

iii. By providing special price off on buying multi packs

iv. Providing special bonus offers, free gifts, free coupons to wholesale

dealers and retailers because they are the people who actually sell the

product and they must be mentioned to sell more specially.

v. Sales contest to the sales force to double or multiples their selling

interest and efforts. By this the hidden competitive spirit is boosted

and the overall performance of the sales-force is improved.

44

Innovation

Product innovations have become an important part of the companies marketing

strategy today. Both establishing and established firms are inventing new products of

bringing about changes in their original products to increase and maintain the

consumers. Now a day’s people expect something new. They purchase such products,

which have something special in them. Therefore innovations are must.

Distribution

i) The distribution network of the company is good, but rather than this the company

should make quickly fly of products the distributors. If in case of delay in supply,

people will start moving to next best alternative.

ii) The company should take steps to supply its products to distributors with 3 to 4 days.

iii) The company should appoint effective sales person in rural and

district area to boost the sales.

iv) Periodical survey of the market is necessary by the company to know

Changing attitudes regarding to products.

45

Suggestions

1) They must give add’s in different media but not to stick on to the single

type.

2) Cooking competitions should be arranged in the cities to attract the

customers.

3) Price should be less than the other products.

4) By the survey most of the consumers suggested to change the colour.

Conclusion

We have discussed “Customer Preference and Awareness of Refined Rice Bran

Oil” with special reference to Malar Solvent Extraction (P) Ltd., throughout the course;

my main concern was to analyses the current Customer Preference and give

suggestion to the firm for better promotion strategy. The result of the survey proves that

Indians although being price conscious people now are concentrating on the health and

quality factor as well. To have a dominant product in the market, sales promotion is very

crucial.

The survey conducted in Sivagangai Dist that is one of the fastest growing cities,

well known for educational institution and famous in business field has proved a very

good market for refined oil.Thus it is very essential that the trading company should

manufacture products and services that satisfy consumer needs.

46

Consumer orientation is importance for creating the brand image in the minds of

the consumer thus it is very important for creating brand image in the minds of the

consumer.

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CONSUMER QUESTIONNAIRE

Dear sir/madam,

I am very happy to introduce myself as “SATHYA.R” studying In

final year M.B.A as a part of our academic study. I am required to work

under a project on any of the management aspects. I have chosen

“Customer Preference and Awareness of Rice Bran Oil” case

study of Malar Solvent Extraction Private Limited.

I request you to spend few minutes to go through these few

questions &answer them. The information provided by you will be kept

confidentially &the information is purely for academic purpose only.

THANKING YOU You’re faithfully,

SATHYA.R

60

1) Name: ---------------------------------------

2) Address: --------------------------------------

3) Sex: a) Male b) Female

4) Age: a) 20-30 b) 30-40

c) 40-50 d) Above50

5) Marital status: a) Married b) Unmarried

6) Monthly/Annual a) 1000-5000 b) 5000-8000

c) 8000 & above

7) Which brand of refined oil do you use?

a) Refined Rice Bran oil b) Crude Rice Bran Oil

c) Wax Oil d) Acid/Soap Oil

If other pleases specifies: -----------------------------------------

8) What factors motivated you to use refined Rice Bran oil?

a) Health b) Price

c) Quality d) Quantity

9) Are you satisfied with regard to the purity of Refined Rice Bran oil?

a) Yes b) No

10) IN what quantity do you need Refined Rice Bran oil?

a) 0-100 Tons b) 5-10 Tons

c) 11-15 Tons d) 16-25 Tons

61

11) What is your opinion about the existing Tons? Do you want any kind of

Changes?

12) Do you get the oil at the right time?

a)Yes b) No

13) Opinion about colour and smell?

----------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------

14) Have you come across any adulteration in Refined Rice Bran oil?

a)Yes b) No

IF yes state the type of adulteration: --------------------------------

15) Please offer some suggestions to improve the oil, to reach your

Expectations

Date:

Place: Signature of the respondent

A STUDY ON CUSTOMER PREFERENCE AND AWARENESS OF RICE

BRAN OIL WITH SPECIAL REFERENCE TO MALAR SOLVENT

EXTRACTION PRIVATE LIMITED, PUDUVAYAL,

KARAIKUDI