PROJECT REPORT

On

“ANALYSIS OF VARIOUS BRANDS OF

SOYABEAN REFINED OIL IN THE MARKET”

SUBMITTED TO CHITKARA BUSINESS SCHOOL, IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION
IN MARKETING (2006-2008)

Submitted by:
Ashwani Pahuja

1
 MBA - 4th Sem.
Roll No. E066009

CERTIFICATE

This is to certify that research project titled “Analysis of various brands of

soybeans refined oil in the market” carried out by Mr. ASHWANI
PAHUJA under my guidance and supervision is an original research work.
It is based upon both the primary data as well as secondary data and
references are from published sources hence it proves authenticity of the
research project.

This research work is original and is an unpublished report.

HARPAL SAINI

Faculty Member

CIET

2
 ACKNOWLEDGEMENT

The research on “Analysis of various brands of soya bean refined oil

in the market ”, was assigned to me as my major project.

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

using basic terms that I hope will comprehended by the widest
spectrum of researchers, analysts and students for further studies.

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

guidance and support. Mere acknowledgement may not redeem the
debt I owe to my parents for their direct/indirect support during the
entire course of the project.

3
 CONTENTS

S.No Contents Page No(s)

Certificate
Acknowledgement
Chapter-I
(a) Introduction to the topic
Executive Summary 5
(b) Introduction to Edible oil industry
i Edible oil market in India 6-10
ii Processing of Soya Oil 11-12
iii Major Players in Soyabean oil 12-29
iv Preferable brands and price 30
V Retailers and customers want to say 31-32
vi Market strategy & marketing mix 32-41
Chapter-II 42
i Objectives 42
ii Scope and Limitations 42
iii Research Methodology 43-44
Chapter- Analysis of Data 45-55
III and Findings
Chapter- Suggestion of Retailers &customers, 55-57
IV Conclusion and Recommendations
Bibliography 58

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EXECUTIVE SUMMARY

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

retailers preferences regarding different soya bean brands which result in
their market share. It involves the study the consumers’ buying behavior
and attitudes towards a variety of attributes and factors, which help them
in decision-making.

Firstly, I took five brands of soya bean refined oils; for a comparative
study. I got the companies’ broad background; their entry into the
segment, their positioning strategies of brands and other factors
affecting the consumer’s buying behavior.

Later I went through the process of filling the questionnaires from 50

retailers & 100 customers selling and consuming soya oil, both
retailers and customers were taken into account to make this research
more effective. Secondary data from various sources like magazines,
a journal etc has also been taken.

The findings showed that the retailers who sell various brands want
more margin and various packages as well and customers want some
discount schemes and soya bean oil at reasonable price between 40
-50,moreover they want after sale services.

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

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EDIBLE OIL MARKET IN INDIA

India accounts for 9.3 percent of world oilseed production. It has the 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).

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Originally, there was no discrimination between refined and non refined edible oil
as far as import duty concerned. The duty on both was 65 percent. Duty was the
slashed to 30 percent for both, then to 20 percent in 1996 and 15 percent in then
1999-2000 budgets.

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

refined oil was fixed at 27.5 percent (25 percent plus 10 percent surcharge) while
that on crude was retained at 16.5 percent (15 percent plus 10 percent
surcharge) But only actual users (as opposed to traders) are allowed to avail of
this reduced duty on crude oil. Traders are nevertheless allowed to import crude
at the reduced duty but only to sell to actual users on a high seas basis. This
requires that the actual users fills in the import documents (and pays the reduced
duty) but leaves the importing process to the trader.

In most parts of the world, the import duty on oilseeds is lower than that on oils.
But, in India it is higher 40 percent. That is why no import of oilseeds of oil
bearing material has taken place in India. The industry wants the duty to be
lowered from the present 40 percent to 5 percent.

Edible oils prices in the Indian market have crashed due to large imports by
multinational trading houses see table.

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IMPORTANCE OF EDIBLE OILS IN THE 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 25.14 million tonnes of

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

Types of Oils commonly used in India.

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

Different agro climate zones. Groundnuts, mustard/rapeseed, sesame, safflower,

linseed, Niger seed/ castor are the major traditionally oilseeds. Soya been and
sunflower have 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, Karnataka, Tamil Nadu in addition to Kerala and Andaman
and Nicobar Islands. Among the non-conventional oils, rice bran oil and
cottonseed oil are the most important. In additional, oilseeds of tree and forest
origin, which grow mostly in tribal inhabited areas, are also a significant source of
oils. Figures pertaining to 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 :-

In Lakh Tonne
Oil year (Nov- Production of Net availability of Consumption of
October) oilseeds edible oils from all edible oils (from
domestic sources domestic and
import sources)
1998-1999 247.48 69.60 95.82
1999-2000 207.15 60.15 102.11
2000-2001 184.40 54.99 96.76
2001-2002 206.63 61.46 104.68
2002-2003 150.58 47.28 90.93
2003-2004 251.42 71.09 124.04
(4th advance (Est.) (Est.)
Estimates)
2004-2005 248.42 73.10 117.10
(2nd advance (Est.) (Est.)

8
 estimates)

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 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 economy. Its production is about 1.2 to 1.4 million
tonnes annually. It has around 10% share of the edible of the 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 oil
such as groundnut oil, mustard oil , sesame oil etc. For example newer oils like
soyabean, ricebran and cottonseed and oils from oilseeds of tree and forest
origin have found their ray 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 colorless.
Odorless and tasteless, and therefore, have become easily interchangeable in
the kitchen. Newer oils, which were not known before they have entered the
kitchen, like those of cottonseed, sunflower, palm, oils or its liquid fraction
(palmolein) soya bean and rice bran. About 60-70% predominately groundnut
and mustard seeds are used to make non-refined or filtered oils. This tends to
have a strong and distinctive test preferred by most traditional customers. The
share of raw oils refined oils and vanaspati in the total edible oil market is
estimated at 42%, 48%and 10% respectively.

MAJOR FEATURES OF EDIBLE OILS ECONOMY:-

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

The development of this sector. One was the setting up of the Technology.
Mission on Oilseeds in 1986. This gave a thrust to 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

9
of the unseasonal rain followed by inclement weather. The production of oilseeds
declined to 20.7 million tonees in 1999-2000. However, as per available
information. The oilseeds production in 2003-2004 is estimated to be 25.1 million
tonnes. The other dominant feature which has had great significant impact on the
present status of edible oilseeds/oil industry has been the programme of
liberalization under which the Government’s economic policy allows 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 21 percent for the first six months to April
2005.

Imports jumped to 2.2 million tonnes in the first half of 2004-2005 up from 1.82
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 5 million tonnes
this year from 4.4 million tonnes in 2003-2004 Mehta added reports the American
Soybean Association.

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

India’s oilseed output for 2005 is estimated to be around 21.8 million tonnes, a
fall of 6.4 percent from 23.3 million tonnes last year.

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The processed food market is enjoying decent growth in India, pushing up
demand for oils. The Indian branded food and drinks market grew last year by
over 5 percent, 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.

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:-

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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 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.

MAJOR PLAYERS

AMRIT BANASPATI CO. LTD

Amrit Banaspati Co. Ltd a company that is synonymous with purity and
goodness, is poised on the threshold of the new millennium today. In a country
as diverse as India , nature has showered her best, in full measure.

About the company :-

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

Today ABC has an installed capacity of 10,000 metric tonnes per month as
compared to a mere 3,000 metric tonnes per month in its first year of operations.
This stupendous growth has been possible because ABC has continuously
endeavored to bring new products to the Indian consumer and that end is R and
D has played a key role.
Further ABC has over the years introduced a range of refined oils namely,
soyabean, groundnut, cottonseed, mustard and sunflower.

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

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

Most importantly, all our products meet the stringent international standards. So
much so that ABC brands are household names today and have been honored
with the “Monde Selection Medal of Brussels” on several occasions.

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)

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♦ Creating and sustaining quality and hygiene consciousness at all levels of
organizing and promoting employees participation.
♦ Organization and promoting employee participation.
♦ Continuous enhancing the money of the customers

QUALITY:-
To ensure consistently in the quality of various products manufactured at 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.

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

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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.

Amrit Banaspati has adopted three tire Distribution :-

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

FORTUNE SOYABEAN OIL

Fortune Refined Soyabean Oil is light, odorless and

healthy oil. Most importantly it contains OMG3 (Omega – 3 fatty acids) – an essential
PUFA 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).

Paanch Ka Ashirwad is for:

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 1 Healthy eyes
2 A strong heart
3 The nourishment of the womb
4 Controlling diabetes
5 The healthy growth of your children

Fortune Refined Soyabean Oil is available in…


Liner 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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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

Title Publication Date

Trusted Brands Award

Reader's Digest May 2006
Winner

Gujarat's rising star Business India May 07 2006

Oil buckle under as

Economics Times February 02 2006
trucks

17
 Health to the people Brand Reporter February 01 2006

Fortune Mission Extra Health was undertaken by AWL in Mumbai

between October-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.17000 crores (US $ 3.7 billion) in
2005, is one of the fastest growing corporate houses in India . Its flagship company –
Adani Enterprises Limited (formerly known as Adani Exports Ltd), is one of the largest

18
 trading companies in India with Five Star Trading House status (Highest status
conferred by the Govt. of India).

• 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 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 .

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.

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

19
Mundra (Gujarat), Mantralayam (Andhra Pradesh), Bundi (Rajasthan)
and Haldia (West Bengal).

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

Kutch in Gujarat . The technology has been imported from De Smet 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, 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.

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.

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",

20
exclusively to cater to the taste of pungent and pure mustard oil of
eastern India .

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.

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.

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

21
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 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
(Soya Lecithin).

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

22
tasteless but 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.

Soyumm Soyumm
Soyumm Soyumm (5 Ltr Jar) (15 Kg Tin)
Soyumm
(1 Ltr Pouch ) (1Ltr Bottle) (15 Kg Jar)

23
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 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

Great Offers

Get a 15 ltr Bucket free with every 5 ltr

Sunrich Jar*

* Special offer for our customers from Chennai**

Get a free gift on every purchase worth Rs. 250/-

Bangalore** Offers

*Get a pack of Tiger Biscuit free on every 5 litre

purchase of Ruchi Gold - Palmolein oil

24
*Get a pack of Cashew Biscuit free with every 5 litre purchase of Sunrich --
Sunflower oil
*Get 500 ml Nutrela Vanaspati free with every 15 kg purchase of Sunrich --
Sunflower

Shop in Bangalore Shop in Chennai

CARGILL LTD
There is a precedent for this phenomena. In Indonesia, the recent
food riots were largely caused by massive imports of soyabean oil, on
which the Indonesian people had become cripplingly dependent.
When the Indonesian currency collapsed, the retail price of soya
escalated, making the cooking oil far too expensive for the bulk of
the people to afford. India would be put in a similarly vulnerable
position if we were to become dependent on imported soya for
cooking oil.

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

beneficial to the health of the Indian people? To begin with one
cannot trust the large cereal merchants, such as Minnesota-based
Cargill Inc., who are notoriously only concerned with the `bottom
line'. For one thing it is an established fact that Cargill indulges in
what has been euphemistically referred to as 'purposeful
contamination' or 'blending' and, if they can get away with it, with
any kind of dirt, cracked grain, high moisture or anything that is
handy and cheap. If the moisture content of a consignment exported
by Cargill is down to 12 per cent and the contract allows for 14 per
cent, they will add water to it so as to bring it up to the maximum
allowable level. As David Senter, the Washington representative of

25
the American Agricultural Movement notes, `all the grain companies
operate in the same way.' Indeed, as a Cargill superintendent stated
in a story published in 1982 in the Kansas City Times: `If we have
got a real clean load of grain we make sure we hold it until we can
mix it with something dirtier, otherwise we would be throwing 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.

Advertisement
26
CargilllaunchesActiLiteoil
Mumbai: After the resounding success of its flagship Nature Fresh brand of branded
packaged food products, Cargill Foods has launched ActiLite, a new refined blended oil
that is light and good for health.

ActiLite is a refined blended oil that contains the power of two — the lightness of
sunflower and the nutrition of soyabean. ActiLite offers a right balance of three kinds of
fat (MUFA, PUFA and SFA) and is, therefore, a healthy well-balanced oil.

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

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

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

1 L pouch 61 59

2 L pouch 130 126

5 L pouch 315 305

Cargill is one of the biggest food companies in the world having more than 130 years 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.

Headquartered in Minneapolis, Cargill Foods is a $45-billion company ranked 45 th in

sales in the Fortune magazine's Global 500 and fifth among the companies in the
prepared foods category in the magazine's ranking of the top 250 global food companies
in 1999

27
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 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'.

28
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 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.

29
 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 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 and

PREFE RA BLE BRAN DS& PR IC E

RAJP UR A

BRANDS PACKIN PRICE

G
1 LTR Rs. 51
GINNI 5LTR Rs. 275
15LTR Rs. 765

30
 1 LTR Rs. 50
GEMINI 5LTR Rs. 270
15LTR Rs. 757
1 LTR Rs. 48.75
MAHAKOS 5LTR Rs. 260
H 15LTR Rs. 747
1 LTR Rs. 49.50
AMBUJA 5LTR Rs. 265
15LTR Rs. 745
1 LTR Rs. 53
FORTUNE 5LTR Rs. 285
15LTR Rs. 775
1 LTR Rs. 50
GOKUL 5LTR Rs. 270
15LTR Rs. 740
1 LTR Rs. 54
DHARA 5LTR Rs. 285
(fit n fine) 15LTR Rs. N.A

WHAT RETAILERS HAVE TO SAY

1) Low margin: - Most of the retailers complained that they get very low
margin in all the products of ABCL as compared to its competitors
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
scheme.

31
 4) Quality problem: - The retailers also said that sometimes the quality
of soya oil is low they have face problems regarding their image
5) MRP Problem :- Retailers also complained that in the days of rising
prices, sometimes it happens that MRP of ginni products is less than
the price at which they have purchased it from the distributor.
6) PROBLEMS related to new products :- they complained that
sometimes they are even unaware of companies new products

WHAT CUSTOMERS HAVE TO SAY

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

more price then the MRP
2) Leakage problem:- customers even told that sometimes they have to
face leakage problems
3) PROBLEMS related to new schemes : customers complaint 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

RECOMMENDED MARKETING STRATEGY

The market strategy of the firm is a complete and unbeatable plan or an instrument
designed specially for attaining the marketing objective of company. The formulation of
the marketing strategy consists of two steps :-
1. Segmentation & target market selection.

2. Assembling the marketing mix.

Market Segmentation And Target Market Selection

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

32
The company may focus on the following factors while laying down the target market.
1. Geographic Segmentation
Geographically the country can be broadly divided into 3 sub segments -Rural, Suburban
and Urban.
In the first phase(after the test launch), Urban parts of the country should be targeted. The
chosen segment is targeted because –
• Lack of infrastructure.

• The consumption pattern & behavior in Rural India does not fit with the product
attributes and perceived benefits.

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

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

Within Urban India, the cities with 1 million + population i.e. top 23 metros will be
targeted. A soft launch of the brand should be undertaken before taking the brand to
these areas. This (test launch) will be undertaken in Bombay, since it (Bombay) is a
high consumption city.
2. Demographic Segmentation
The demographic variables have been separately addressed to arrive at the target
audience.
• Age: 30-40 years + segment of the population is recommended to be targeted.

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

1. Old people who are suffering from heart diseases.

2. Married people who are health conscious.

The brand may positioned such that it fits all stages of family life cycle.
• Income : The income segmentation may be all households with an annual income
exceeding Rs. one lakh. Targeted audience may be all households that can afford a
television or have access to satellite television.

3. Psychographic Segmentation
Social Class : In terms of psychography the social class targeted is the educated
upwardly mobile urban middle and upper class. .

33
 Life Style : In terms of lifestyle, it may be aimed at those who favor buying
convenience products. They are also willing to experiment with alternate products in
place of conventional food items.
4. Behavioural Segmentation

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

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

TARGET AUDIENCE
Following from the above, it is recommended to target consumers who
found other refined oils too heavy. Usage rather attitude is being used to
segment. There are 181 million urban individuals in India Our target
segment is people living in the top 23 metros (1 million +population), which
implies 63 million people.

SUGGESTIVE MARKETING MIX

The objective of the marketing mix developed is:

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

material, and adapted to the taste and the nutritional habits of the
population”.

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

Product

34
 The two most important segments of the market are Moulded and Countline
segment(segments have a high share of the market). Also, it can be seen in the
findings, the Indian consumer does not recognise the difference between
Moulded and Countline segment. Further, a key decision that needs to be taken
is to decide whether to have a core brand focus or have a plethora of brands.
Here, it would be advisable to launch a complete basket of products covering
both the countline and the Moulded chocolate segment (at least if not Panned). A
range of brands can help cushion out risks over the entire offering. Also, it has
been that to sustain in the long term, a complete portfolio of chocolates for every
taste is essential. However, a concentration strategy may be adopted in the first
phase, focusing on one core flagship brand.

The various product attributes have been mentioned below :

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

it contains nickel) may be adhered to. Nickel in chocolates can cause
cancer. However, research is still on to prove this. Product formulation
should keep this aspect in mind.

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

Blue, Green and Red color which represents a fun element so that the
customers don’t even realize that they are taking oil due to Dr’s
recommendation. The packaging should keep the product fresh and
protected from the harsh climatic conditions in the country, and hence
provide a longer shelf life.

• Sizes : As can be seen in the findings the most popular size is litres
should be used. .

• Shelf Life:-The product should also have a high shelf life with a good
shelf appeal as well..

Product Differentiation
Since, there exists strong competition from heavy weights such as FORTUNE ,
NATURE FRESH AND SOYUMM, the product offering should be well
differentiated.

35
 Pricing
Factors like competition, internal costs, the poistioning and corporate objective of
the company need to be taken into consideration by a company before pricing a
product.

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

taste and quality (most important attributes-see findings) is recommended. The
premium pricing does not suggest that the offering is made unaffordable to the
target consumer. A high price would not accompany a promise for a better taste
and quality.

Further, the product category is relatively inelastic i.e. consumers would not stop
buying their favourite brands if the price is increased by a few rupees (see
findings). Consumers feel that even if the price of their favourite brand is
reduced, they might not buy more of it.

Placement
The success of any FMCG product thrives on distribution. Factors like financial
cost effectiveness) perishability of the product, repeat orders; managerial
capacity and unit value of the product need to be carefully analysed while setting
up the distribution framework of the company. The product category is essentially
a “pull” market. However, the channel members provide greater visibility to the
product.

Recommended Distribution Logistics

The first task in hand should be, to effectively map the territory into smaller more
accessible and controllable units. An effective territory mapping needs to be done not
only to provide an efficient coverage of the market but also to provide growth

36
opportunities to the constituents (stockists), as the company grows. The recommended
distribution chain would be as follows:

Carrying & Forwarding Agents: These may be appointed at two or more State(s) of
operation of the company. Carrying & Forwarding agents work on a commission basis –
3% (industry norms) of the goods handled. It is recommended that the country keeps
about 4 to 6 weeks of inventory at the C&F level and a commission structure which is in
keeping with the industry norm. Therefore a 3 percent commission on the invoice value
may be provided to the agents.

Stockists : A stockist provides a local delivery point for the

manufacturer/marketer. They store the products, break bulk, and distribute to
the retailers. With greater no. of retailers now seeking credit from the retailer,
efficient management of collection has become a vital part of the stockists’ job.
The main problems that new product faces is that of getting experienced and
effective channel members. As existing marketing marketer/manufacturer can
piggy back on the existing channel structure. A new company will have to provide
greater incentives convince channel members to stock the product offering.
Hence, an innovative means of channel handling needs to be adopted:

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

(industry standards 5.66%)

• The efforts of the sale representatives employed by the stockists to get orders
may be supplemented by the manufacturer’s sales force.

37
• Retail outlets to be serviced at least four times in a month (atleast once a
week)

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

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

A/C expenses may be borne by the Co.

Wholeseller : Wholeseller’s prime concern is buy in bulk and sell at the fastest
rate. The aim of any distribution chain of mass-market product category like soya
oil would be to expand its reach i.e. the no. of outlets storing its products. This
may not be possible even with a well established stockist network. Hence,
wholeseller’s paly a significant role in supplementing the stockists’ effort snd in
providing a better reach to the product.

Retail Outlets : It is extremely important for any chocolate brand to have a well
entrenched retail presence. Reach Is the key.

The first stumbling block for a new brand/product is, to convince the retailers to
stock the offering. Retailers want smaller quantities at shorter intervals. Hence,
retailers may be convinced by offering smaller quantity options to them. Also,
retail margins provided may be higher than the industry than the industry
standards (industry standards range from 8.5% to 9.5% of the MRP). The
margins offered can be around 9.75% of the MRP.

Promotion
This involves communicating persuasively to the consumers, in order to arouse their
interest in the product. A detailed promotion plan involving advertisement, sales
promotion and public relations is proposed.
.
Advertisement Plan
The Advertisement plan could be as under:

38
Corporate objective: The corporate image should be built over a period of time,
so as to reinforce consumer confidence in the brands of the company. This is
also essential to counter competition, since over a period of time, names such as
fortune , nature fresh and soyumm have attained high levels of recognition and
assurance.

Advertisement Objectives

• To position the product as a “high quality brand, with a wide range of offering,
providing, fun anytime, anyplace products”.

• To create awareness about new arrivals of soya oil.

• Induce consumer trials.

• Build corporate image

• To undertake competitive advertisement.

Message: The message design will be consist of following;

• Appeal: it should be appealing one

• Presentation: should be well presentable

• Message Source: For print media the message source will be the copy part
and creative advertisement design. For electronic media, the source will be
whole family unit, younger enjoying the food.

Media

• Print Media: Will be the major magazines read by the target segment i.e..,
India today, society, femina, stardust etc..

• Electronic Media: Since the whole of target segment watch Satellite TV during prime
time and advertisement will be featuring share for 3 or more time to leave an impact.

Public Relations:

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

39
II. Company has plan to sponsor events like 2 viz., skiing river rafting, yachting
etc.

III. Company will also sponsor fun based TV programs.

Sales promotion Activities: To induce consumers to try the new product and to
get the product pushed in the market the sales promotion plan should include the
following :

Trade promotion: The Company will have to offer lucrative trade promotion
schemes, in order to push primary sale. These include incentives to stockists for
pushing the sale of oil. At the retail level, the following trade promotion measures
may be adopted:

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

10,000 worth of oil.

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

• Shop Displays

Apart from these, WindowShelf space may be purchased outright.

Consumer Promotion: Some of the consumer offers that could be introduced are :
1. Free gifts like pen, soaps etc., on return of oils wrapper

2. Money Savers

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

with attractive prizes, supplemented by an advertisement campaign.

MARKET TESTING PLAN

The company should test the product before it goes national (23 metros with million
+ population). This is so because:

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

2. Facilitate validation of positioning.

40
3. Allow corrective action through incorporation of consumer feedback.

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

1. Test Objectives: To validate the brand names, new outlets, etc and to
measure the sales volume, pricing and promotion policy. Competitor reaction
can also be analysed.

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

selection was based on :

• Bombay is uniformally represented by the target segment

IMPLEMENTATION
A well designed marketing plan counts for nothing, if not implemented properly.
Success in the market place depends upon the way the plan is implemented. The
launch is recommended to be before winters-say September or October, since –

• That period would facilitate high Diwali sales, and

• During winters people prefer more oily and fried as well as junk food so
consumption is more .

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

• Sales Distribution Network

• Quality standards

• Research and Development-continuous innovative products

41
• Technology support

Before the launch the following should be ensured:

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

2. Feedback of sales staff regarding product competition

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

department, R&D for product modification.

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

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

related problems.

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

the distributors and the retailers.

The marketing team must maintain a “Management Information System”

consisting of *Sales reports * Consumer feedback * product

OBJECTIVE OF THE STUDY

Research would be carried out based on these objectives.

42
1) To find out customer preferences towards different brands of
soyabean oil
2) Market share of each brand towards total market share of
soyabean oil
3) What is the margin retailers are getting from various brands
& what are the brands they want to sell
4) What problems are they facing related to new or various
products
5) To get the feedback from retailers & customers as well

SCOPE & LIMITATIONS OF THE STUDY

• 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.

• 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

43
 • Time constraints put boundaries to sample area and hence limited the
extent of the study

• Taking convenience sampling might have led to some bias as people

with different age groups have different perceptions

RESEARCH METHODOLOGY
A research design is the arrangement of condition for collection and analysis of
data in a manner that to, combine relevance to research purpose with economy
in procedure.
Research Design :- is conceptual structure within which research is conducted.
It constitutes the blue print of collection, measurement and analysis of data
.Research Design is needed because it facilitates the smooth sailing of various
research operations, thereby making research as efficient as possible yielding
maximum information with minimum time, effort and money. Research Design
stands for advance planning of methods to be used for collecting relevant data
and techniques to be used in the analysis .The design helps researcher to
organize his ideas whereby it will be possible for him to look for flaws and
inadequacies.
Method of data collection: - for collecting data and the accuracy of facts,
complete enumeration was used. for collecting the data a sample of retailers &
consumers were drawn

Data Analysis: - For the data analysis to know the market share of various
soyabean brands computer programme called Microsoft Excel was used, with
the help of Microsoft Excel, I came to to know the quantity sold per month of
each brands . On the basis of the quantity sold per month, I could collect the
market share of each brand.

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

44
Sources of primary and secondary data:
The major aim of the project was to analyze the competition in occupying
market shares of various soyabean oil brands. Therefore I had to get
considerable information about the competing brands. For this I had to go
through a lot of secondary data.
A lot of issues of Business Today ,Economic Times were consulted.

45
 Analysis of Retailer Responses

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

Fortune 40
Nature fresh 25
Soyumn 32
Ginni 10
Dhara 20

VArious soyabean brands

available

dhara
16% fortune fortune
ginni 31% nature fresh
8% soyumm
soyumm nature
ginni
25% fresh
20% dhara

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

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

46
 Fortune 32
Nature fresh 5
Ginni 1
Dhara 1
Soyumm 14
soyabean oil with maximum
sale
soyumm
fortune
ginni 26% fortune
61% nature fresh
2%
ginni
nature
dhara dhara
fresh
2% soyumm
9%

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?

I ltr 5ltr 15ltr

40 25 32

Soyaben Oil with maximum

sale

15ltr
33% I ltr I ltr
41% 5ltr
15ltr
5ltr
26%

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)

47
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?

Advertising 4
Attractive
packaging 5
Retailer 4
Shop display 7
Pricing 28
Discount 30
Health
conscious 40

Customers are influenced by

advertising
attractive
health attractive
packaging packaging
conscious advertising
4% retailer
35% 3%
retailer shop display
3% pricing
discount shop
25% discount
display
pricing
6% health
24% conscious

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?

48
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?
Yes 38
No 12

SATSFIED WITH THE

INCENTIVES
no
24%
yes
no
yes
76%

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?

Yes 30
No 20

49
 SAISFIED WITH THE
SELLING BRANDS

no
40% yes
yes
no
60%

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

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

Transportation 13
Scheme 16
Margin 19
Credit 2

Suggestions

transport
credit
ation transportation
4%
margin 26%
scheme
38%
margin
scheme
credit
32%

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.

50
 ANALYSIS OF Customer Responses
QUES :- Do you use soyabean oil?

Yes 62
No 38

CONSUMPTION OF
SOYABEAN OIL

no
38% yes
yes no
62%

Customers respondents agreed that they use soyabean oil and out of 100
respondents 62%agreed.

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

Fortune 25
Nature fresh 12
Soyumm 15
Ginni 2
Dhara 8

Most used brands

Dhara
13% Fortune
Ginni
3% Fortune Nature fresh
41% Soyumn
Soyumn
Ginni
24%
Dhara
Nature
fresh
19%

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

QUES :- Rank the following attributes according to their

importance to you? (5 being maximum)

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GRADING 1 2 3 4 5
Taste 6 19 25 5 7
Quality 5 17 27 6 7
Packaging 9 19 23 6 5
Brand image 7 21 4 13 7
Price 2 4 7 9 40
Out of the various attributes shown above PRICE is one of the most
important factor that influences buying decisions of various customers.

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

Advertisment 3
Attractive
Packaging 4
Retailer 12
Shop display 5
Pricing 21
Health
conscious 17

DECISION ARE INFLUENCED BY

Advertisment
5% 6% Attractive
27%
Packaging
19% Retailer

Shop display
8%
35% Pricing

Health conscious

PRICING is again the leading factor followed by the customers who

consume just because they are health conscious.

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

will. . . . .?

drop the idea of buying it 2

go to another retail
outlet 37
2
try another brand 3

If Particular brand not

avaliable

3% drop the idea

of buying it
37% 0%
go to another
retail outlet
60%
try another
brand

As per the collected data it is clear that customers want to stick to their
particular brand rather than trying out some different brand.

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

of good quality?

below Rs 30 6

between 30 and 40 9

between 40 and 50 39

more than 50 8

53
 PRICE FOR 1LTR
below rs 30

13% 10%
between 30
15%
and 40
between 40
and 50
62% more than 50

AS clear from the above diagram it is clearly indicated that customers want
price of 1ltr between the range of 40 – 50 so that it is easily affordable for
them easily.

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

go for it?

Yes 39
No 23

WILL YOU BUY IF YOUR

BRAND IS EXPENSIVE

no
37% yes
yes no
63%

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

54
 or a product free, whould it affect you purchase decision?

YES 47
NO 15

SALES PROMOTION
EFFECTS BUYING
DECISIONS
no
24%

yes
yes
76%
no

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

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

1ltr 37
5ltr 12
15ltr 13

PACKAGING MOSTLY SOLD

15ltr
21%
1ltr
5ltr
5ltr 1ltr
19% 60% 15ltr

1LTR packaging is mostly sold in the market.

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

available in india, today?

55
 YES 37
NO 25

SATISFIED WITH THE

BRANDS SOLD IN INDIA

no
40% yes
yes no
60%

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.

56
SUGGESTIONS OF THE RETAILERS &

CUSTOMERS

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

leaked packets should be given to them.
2) The company should reduce the cost of their products and the margin
of the retailers should be increased.
3) There should be proper channel of information, whenever any scheme
is introduced by the company for the retailers, they should be properly
informed about the scheme.
4) In the same way, whenever any scheme is introduced for the
consumer there should be atleast a print advertisement if T.V.
advertisement is not possible.
5) Other incentives should also be given to the retailers like glow sign
boards etc.

CON CL USI ON S & RE CO MME ND ATIO NS

1) Leakage problem should be taken care of and the retailers should fully
compensated for their loss due to leakage.
2) There should be proper feedback for the retailers AS WELL AS
customers whenever any scheme is introduced for the retailers &
customers they should be made aware of it. Sales representatives
should be given guidelines to intimate each and every retailer of his
area about the schemes.

57
 3) Being all the companies are ISO 9001 company, it is not good for the
reputation company that it is getting complaints about the products
related to quality. More emphasis should be laid on the quality to avert
such circumstances.
4) Regarding the introduction of new products, the company should go for
aggressive marketing. There is a lot of potential in Soya Refined oil
segment, but retailers are not even aware of our product.
5) Whenever any consumer oriented scheme is introduced, the scheme
should be directly targeted to that person who actually uses i.e., house
wives.
6) Non monetary incentives should be also given to the retailers in each
and every city. They should be given glow sign boards and other sales
promotional materials. This will boost up their spirits.

MRP problem during the days of rising prices should be 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.

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

Business today

GREEN AND TULL , Marketing Research

WEBSITES

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www. Google.co.in

www.adani.com

www.amri banaspati.com

www. Soyumm.com

www.cargill.com

www.dharaproducts.com

www. Naturefresh.com

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