A

PROJECT REPORT
ON
Consumer Buying Behaviour of Gemini oils
In Modern Trade Outlets, Pune.
CARGILL INDIA PRIVATE LIMITED

Submitted By
ROHIT SINGHAL

Submitted To
Guru Gobind Singh Indraprastha University

1
 Table of Contents:

Sr. No. Topic Page –

No.

1. Acknowledgement 3

2. Executive Summary 4

3. Introduction to Industry 5

4. Introduction of Company 6-7

5. Literature Review 8-18

6. Title, Objectives , Scope & Significance of the study 19-45

7. Research Methodology 46-60

8. Facts & Findings 61-63

9. Data Analysis, Presentations and Data Interpretations 64-70

10. Limitations 71-79

11. Recommendations 80-94

12. Conclusion 95-97

13. Bibliography 98-101

14. Annexure 102-104

15. 105-106

16. 107-111

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 “INTRODUCTION
TO THE
INDUSTRY”

Fast moving consumer goods

3
Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low
cost. Though the absolute profit made on FMCG products is relatively small, they generally
sell in large quantities, so the cumulative profit on such products can be large.

Examples of FMCG generally include a wide range of frequently purchased consumer

products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper
products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products and drinks, although these are often categorized separately.

In Britain, "white goods" in FMCG refers to large household electronic items such as
refrigerators. Smaller items such as TV sets and stereo systems are sometimes termed "brown
goods".

Some of the best known examples of Fast Moving Consumer Goods companies include
Colgate-Palmolive, General Mills, Nestlé, Unilever, Procter & Gamble, Coca-Cola,
Pepsi etc.

FMCG products are generally replaced or fully used up over a short period of days, weeks, or
months, and within one year. This contrasts with durable goods or major appliances such as
kitchen appliances, which are generally replaced over a period of several years.

India's FMCG sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages.

The total FMCG market is in excess of Rs. 85,000 Crores. It’s currently growing at double
digit growth rate and is expected to maintain a high growth rate. FMCG Industry is
characterized by a well established distribution network, low penetration levels, low
operating cost, lower per capita consumption and intense competition between the organized
and unorganized segments

Industry Background
FMCG is one of the most dynamic domains of the business world. A career in this sector

4
encompasses a large number of job roles like market research, pricing and product
development, purchasing, advertising and brand awareness. FMCG is a sector where
graduates can gain excellent rewards if they work hard. FMCG products are those that move
off the shelves in retail outlets very quickly.
In the Fast Moving Consumer Goods (FMCG) sector, one needs to be fast in translating the
ideas into new products. There is a requirement to create the products that people trust, enjoy
and use in their daily lives. Advertising and marketing have a vital role to play in this.
Sector Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.
60,000 crores. FMCG sector generates 5% of total factory employment in the country and is
creating employment for three million people, especially in small towns and rural India.

Offerings of FMCG

FMCG Sector (In 2010)

The FMCG sector in India is the fourth largest sector in the economy with a total market size
in excess of US$ 13.1 billion. The volume of money circulated in the economy against
FMCG products is very high, as the number of products the consumer use is very high.
The Indian FMCG market has been divided for a long time between the organized sector and
the unorganized sector. While the latter has been crowded by a large number of local players,
competing on margins, the former has varied between a two-player-scenario to a multi-player
one.

Unlike the U.S. market for fast moving consumer goods (FMCG), which is dominated by a
handful of global players, India's Rs.460 billion FMCG market remains highly fragmented
with roughly half the market going to unbranded, unpackaged home made products. This
presents a tremendous opportunity for makers of branded products who can convert
consumers to branded products.

However, successfully launching and growing market share around a branded product in
India presents tremendous challenges. Take distribution as an example. India is home to six
million retail outlets and super markets virtually do not exist. This makes logistics
5
particularly for new players extremely difficult. Other challenges of similar magnitude exist
across the FMCG supply chain.

Increased competition in the FMCG industry

The recent rise of private-label goods has led to increased competition within the FMCG
industry. A focus on bringing high volume products at lower prices to the market has created
greater demands on all actors. Producers must differentiate their products and quickly bring
them to market. Since products are consumed shortly after they are produced, it is imperative
to keep production uptime high at all times. Any stop in production can cause empty shelves
and lost market share.

SWOT Analysis of FMCG Sector

Strengths:
1. Low operational costs.
2. Presence of established distribution networks in both urban and rural areas.
3. Presence of well-known brands in FMCG sector.

Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially in
small sectors.
2. Low exports levels.
3. "Me-too" products, which illegally mimic the labels of the established brands. These
products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities:
1. Untapped rural market.
2. Rising income levels i.e. increase in purchasing power of consumers.
3. Large domestic market- a population of over one billion.
4. Export potential.

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 5. High consumer goods spending.

Threats:
1. Removal of import restrictions resulting in replacing of domestic brands.
2. Slowdown in rural demand
3. Tax and regulatory structure.

Top Ten Players in FMCG Sector

Company Position

Hindustan Unilever Ltd. 1

ITC 2
(Indian Tobacco Company) 3
4
Nestlé India 5
6
AMUL 7
8
Dabur India 9
10
Asian Paints (India)

Cadbury India Source: www. naukrihub.com

Britannia Industries
Scope of the Sector
Procter
The Indian FMCG sector with a
& Gamble Hygiene and Health Care
market size of US$13.1 billion is
Marico Industries
the fourth largest sector in the
economy. A well-established distribution network, intense competition between the

7
organized and unorganized segments characterizes the sector. FMCG Sector is expected to
grow by over 60% by 2010.
That will translate into an annual growth of 10% over a 5-year period. It has been estimated
that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in
2010.

Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost
rural incomes, hence providing better growth prospects to the FMCG companies. Better
infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit
from growing demand in the market.
Because of the low per capita consumption for almost all the products in the country, FMCG
companies have immense possibilities for growth. If the companies are able to change the
mindset of the consumers, i.e. if they are able to take the consumers to branded products and
offer new generation products, they would be able to generate higher growth in the near
future. It is expected that the rural income will rise in 2007, boosting purchasing power in the
countryside.

However, the demand in urban areas would be the key growth driver over the long term.
Also, increase in the urban population, along with increase in income levels and the
availability of new categories, would help the urban areas maintain their position in terms of
consumption. At present, urban India accounts for 66% of total FMCG consumption, with
rural India accounting for the remaining 34%.

However, rural India accounts for more than 40% consumption in major FMCG categories
such as personal care, fabric care, and hot beverages. In urban areas, home and personal care
category, including skin care, household care and feminine hygiene, will keep growing at
relatively attractive rates. Within the foods segment, it is estimated that processed foods,
bakery, and dairy are long-term growth categories in both rural and urban areas.

8
Spending Pattern
An increase is spending pattern has been witnessed in Indian FMCG market. There is an
upward trend in urban as well as rural market and also an increase in spending in organized
retail sector. An increase in disposable income, of household mainly because of in-crease in
nuclear family where both the husband and wife are earning, has leads to growth rate in
FMCG goods.

Changing Profile and Mind Set of Consumer

People are becoming conscious about health and hygienic. There is a change in the mind set
of the Consumer and now looking at “Money for Value” rather than “Value for Money”. We
have seen willingness in consumers to move to evolved products/ brands, because of
changing lifestyles, rising disposable income etc.
Findings according to a recent survey by A. C. Nielsen shows about 71 per cent of
Indian take notice of packaged goods' labels containing nutritional information
compared to two years ago which was only 59%.

Governmental Policy
Indian Government has enacted policies aimed at attaining international competitiveness
through lifting of the quantitative restrictions, reducing excise duties, and automatic foreign
in-vestment and food laws resulting in an environment that fosters growth. 100 per cent ex-
port oriented units can be set up by government approval and use of foreign brand names is
now freely permitted.

Foreign Direct Investment (FDI)

Automatic investment approval (including foreign technology agreements within specified
norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate
Bodies (OCBs) investment, is allowed for most of the food processing sector except malted
food, alcoholic beverages and those reserved for small scale industries (SSI).
There is a continuous growth in net FDI Inflow. There is an increase of about 150 per cent in
Net Inflow for Vegetable Oils & Vanaspati for the year 2008.

9
SOURCE- www.ghallabhansali.com

Market Opportunities
Vast Rural Market----Rural India accounts for more than 700 Million consumers, or 70 per
cent of the Indian population and accounts for 50 per cent of the total FMCG market.
The working rural population is approximately 400 Millions. An average citizen in rural
India has less then half of the purchasing power as compare to his urban counterpart. Still
there is an untapped market and most of the FMCG Companies are taking different steps to
capture rural market share. The market for FMCG products in rural India is estimated 52 per
cent and is projected to touch 60 per cent within a year. Eg. Hindustan Unilever Ltd is the
largest player in the industry and has the widest market coverage.

The following factors make India a competitive player in FMCG sector

1) Availability of raw materials

Because of the diverse agro-climatic conditions in India, there is a large raw material base
suitable for food processing industries. India is the largest producer of livestock, milk,
sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and
fruits &vegetables. India also produces caustic soda and soda ash, which are required for the
production of soaps and detergents. The availability of these raw materials gives India the
location advantage.

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2) Labor cost comparison

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest
in the world, after China & Indonesia. Low labor costs give the advantage of low cost of
production.

3) Export - “Leveraging the Cost Advantage”

Cheap labor and quality product & services have helped India to represent as a cost ad-
vantage over other Countries. Even the Government has offered zero import duty on capital
goods and raw material for 100% export oriented units. Multi National Companies out-
source its product requirements from its Indian company to have a cost advantage.
India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew apart
from being the second largest producer of rice, wheat, fruits & vegetables. It adds a cost
advantage as well as easily available raw materials.

Porter's Five Forces Model

Porter's Five Forces model outlines the primary forces about competitiveness within the
industry:-

Rivalry among Competing Firms

In the Fast Moving Consumer Goods (FMCG) Industry, rivalry among competitors is very
fierce. There are scarce customers because the industry is highly saturated and the

11
competitors try to snatch their share of market. Market Players use all sorts of tactics and
activities from intensive advertisement campaigns to promotional stuff and price wars etc.
Hence the intensity of rivalry is very high.

Potential Entry of New Competitors

FMCG Industry does not have any measures which can control the entry of new firms. The
resistance is very low and the structure of the industry is so complex that new firms can
easily enter and also offer tough competition due to cost effectiveness. Hence potential entry
of new firms is highly viable.

Bargaining Power of Consumers

Bargaining power of consumers is also very high. This is because in FMCG industry the
switching costs of most of the goods is very low and there is no threat of buying one product
over other. Customers are never reluctant to buy or try new things off the shelf.

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Potential Development of Substitute Products

There are complex and never ending consumer needs and no firm can satisfy all sorts of
needs alone. There are plenty of substitute goods available in the market that can be re-placed
if consumers are not satisfied with one. The wide range of choices and needs give a sufficient
room for new product development that can replace existing goods. Every other day there is
some short of new product, variants and design. This leads to higher consumer’s expectation.

Bargaining Power of Suppliers

The bargaining power of suppliers of raw materials and intermediate goods is not very high.
There is ample number of substitute suppliers available and the raw materials are also readily
available and most of the raw materials are homogeneous. There is no monopoly situation in
the supplier side because the suppliers are also competing among themselves.

“INTRODUCTION
13
 TO THE
COMPANY”

Cargill India (Pvt.) Ltd.

Cargill in India
Cargill maintains a number of businesses in India, with operations including the handling and
processing of a wide range of products, including refined oils, grain and oilseeds, sugar,
cotton and animal feed. In addition, Cargill develops flavour systems and operates a value
investing business. Our presence in India has been growing since we began a joint venture

14
operation in 1987 and today it has an access over 1000 towns and 2,50,000 retail outlets. Its
head office is located at cyber city phase 3 Guargoan ( Haryana).

Vision

“Our vision is to be the leading player in Indian edible oils market and
creating a distinctive value for all stakeholders”.

Mission
“We will develop and deliver value added products, which exceed statutory
requirements to satisfy our internal and external customers, by creating a culture
of continuous improvement and will establish dominant position in ours chosen
market, by achieving competitive advantage in all functions and building and
retaining a high performing customer-focused team.”

Approach

“Our approach is to be trustworthy, creative and enterprising”.

Measures

“Our measures are engaged employees, satisfied customers, enriched

communities and profitable growth”.

Why choose Cargill?

People choose to work at Cargill for many reasons. Some say it is the respect they feel from
their supervisors. Some value the opportunity to make a difference through Cargill’s
community-involvement projects. Some just like that every day they can be themselves and
be rewarded for it. We help customers succeed through collaboration and innovation, and are
committed to sharing our global knowledge and experience to help meet economic,
environmental and social challenges.

Cargill's Guiding Principles

15
 • It is not practical to set out detailed guidelines to govern every situation that might
arise in the conduct of our varied and complex global business. Instead, below are the
seven basic Guiding Principles that form the framework in which to examine any
problem arising in any country.
• Cargill will comply with the laws of all countries to which it is subject.
• Cargill will not knowingly assist any third party to violate any law of any country, by
creating false documents or by any other means.
• Cargill will not pay or receive bribes or participate in any other unethical, fraudulent,
or corrupt practice.
• Cargill will always honor all business obligations that it undertakes with absolute
integrity.
• Cargill will keep its business records in a manner that accurately reflects the true
nature of its business transactions.
• Cargill managers and supervisors will be responsible that employees, consultants and
contract workers under their supervision are familiar with applicable laws and
company policies and comply with them. Further, they will be responsible for
preventing, detecting, and reporting any violations of law of Cargill policies.
• Cargill employees will not become involved in situations that create a conflict of
interest between the company and the employee.
• Every year, all Cargill employees sign an agreement to live these principles.

Cargill milestones in India

1987 Cargill Seeds - a joint venture operation - commenced in India.

1994 Cargill starts its fertilizer/crop nutrients operations in India.
1997 Cargill launches its primary sugar and edible oils trading business in India.
1998 Commences grain and oil seeds business in India.
2001 Launches food business under Cargill Foods – launch of brand “Nature Fresh”.
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2003 • Cargill acquires the Food Flavors business from Duckworth Group UK, and
Duckworth Flavors India becomes part of Cargill India.
• Cargill sets up green field edible oil refineries at Kandla and Paradip.

• Cargill launches one stop agri-shops – Saathi Krishi Samadhaan Kendras.

2004 Cargill diversifies its fertilizer business into a joint venture with IMC global. Cargill
India's DAP business renamed as Mosaic India.
2005 • Cargill acquires Parakh Foods with brand "Gemini" and sets up a new Business
Unit called Cargill Refined Oils India. This is first business unit with
headquarters in India.

• Cargill launches Saanjhi Unnati Program in Rajasthan for development of malt

barley in active collaboration with the Government of Rajasthan and SAB
Miller.
2006 • Cargill starts its sugar off shoring business to support the execution activities of
Cargill Netherlands.
• Cargill sets up CarVal India Pvt. Ltd.
• Cargill enters into a joint venture in a project for setting up a green field sugar
refinery in South India.
• Cargill entered into tolling arrangements with local Soybean crushers in
Maharashtra, Rajasthan and Madhya Pradesh

• Cargill enters into a joint venture and subsequently owns and leads a shrimp
feed manufacturing business in Rajahmundry in Andhra Pradesh.
2007 Cargill launches cotton trading business in India.
2008 An independently managed subsidiary of Cargill, Black River Advisor India Pvt. Ltd.,
begins operations in India.

In India, where vitamin deficiency is major health concern, Cargill reaches 25 million
people per month with cooking oil fortified with essential vitamins.

Our Behavior

Companies are not about bricks and mortar. They are about people. Companies behave as the
people within those companies behave. We believe that our success is determined by the
behavior of our people. Proper behavior results in prompt, accurate, cheerful, courteous
service. Improper behavior-well, companies must do everything they can to avoid it because
it is all-too-common.

We realize that perfection is not achievable, but we think it's important for you to know how
the employees of Cargill, in general, and Cargill Animal Nutrition, in particular, are expected
to behave.

17
Behavior Themes of Cargill's Culture:

• Discuss / Decide / Support

• Demonstrate Respect, Candor and Commitment
• Develop and Leverage Deep Customer Knowledge and Insights
• Pursue and Reinforce Collaboration
• Ensure & Accept Accountability
• Challenge / Innovate / Change

Products & Services

Refined oil brands

Cargill Refined Oils India

Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils
and fats to wholesale trade, industrial and household consumers across India. We own and
operate four vegetable oil refining facilities – three are located on east and west coast ports of
India, the other is located in western India. Refined Oils India markets a range of refined
sunflower, soy, palm, olein and ground nut oils, hydrogenated fats and bakery shortenings
under our national brands, Nature Fresh™, Gemini™, Purita™, and other region-specific
brands.

Major Refining Capabilities

Our refineries are unique in technology and refining capabilities and adhere to stringent
specifications for maintenance of product quality, oil stability and food safety. The qualities
found within our operations are unparalleled in India:

18
 • Best and latest refining technology, which has been tested and improved across
various refinery set-ups within the global Cargill network?
• A team trained by international experts and on international platforms run these
refining capabilities and is fully equipped to produce the best product in the country.
• Standards of quality have been set keeping the international and Indian requirements
in mind. These standards incorporate the best of both worlds and meet the highest
levels of quality.
• Specifications that not just ensure superior quality but also high stability without
addition of preservative chemicals. No oil that does not meet these specifications is
ever packed or shipped.

• Hands free treatment with no direct human touch on the product itself due to fully
automated refining technology. This has led to a very clean and hygienic environment
and a better and safer product.

Cooking oils in India

An oilseed in India account for around 5.0 % of the Gross National Product (GNP) and 14%
of the country’s area is under cultivation of crops. Castor, Groundnut, Linseed, Niger,
Rapeseed, Mustard, Sunflower etc. are some of the major oilseeds grown. India is one of the
largest producers of oilseeds in the world which accounts for 9.3% of world oilseeds
production. This sector occupies an important position in the agricultural economy having

19
the world’s fourth largest edible oil economy and accounting for the estimated production of
30.21 million tones of nine cultivated oilseeds during the year 2009-10. India accounted for
about 6.4% of worlds oil meal export. Yet, about 43% of edible oil available in India is
imported.

Source- Production of oilseeds: Ministry of Agriculture.

Types of oils commonly used in India

India is fortunate in having wide range of oilseeds crops grown in its different agro climatic
zones. Groundnut, mustard/ rapeseed, sesame, safflower, linseed, nigerseed/ castor are the
major traditionally cultivated oilseeds. Soyabean and 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 & Nicobar Islands. In addition, oilseeds of tree and forest origin, which
grow mostly in tribal inhabited areas, are also a significant source of oils.

Consumption pattern of Edible oils in India

India is a vast country and inhabitants of several of its regions have developed specific
preference for certain oils largely depending upon the oils available in the region. 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 million
tones annually. It has around 10% share of the edible oil market. It has the ability to absorb a
heterogeneous variety of oils, which do not generally find direct marketing opportunities
because of consumer’s preference for traditional oils such as groundnut oil. Mustard oil,
sesame oil etc. For example, newer oils like soyabean, sunflower, ricebran and cottonseed
and oils from oilseeds of tree and forest origin had found their way to the edible pool largely
through vanaspati route.

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The share of raw oil, refined oil and vanaspati in the total edible oil market is estimated at
35%, 55%, and 10 % respectively.

Cargill Refined Oils

Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils
and fats to wholesale trade, industrial and household consumers across India. We own and
operate three vegetable oil refineries located at Paradeep (Orisa), Kandla (Gujarat) and
Kurkumbh (Maharastra). Cargill Refined Oils India has been operating within India since
2005 and employs more than 750 people.

1.NatureFresh® Acti-Lite refined oils

NatureFresh® Acti-Lite refined oils always ensured that you stay light and active. Now it’s
verified! With added DMPS (a permitted antioxidant as ingredient), lab results have shown
that food cooked in Nature Fresh® Acti-Lite refined oils, absorb less oil as compared to food
cooked in ordinary oils. So now indulge in your favorite foods without guilt, knowing that
you have the trusted quality of Cargill. Nature Fresh® is available in refined soybean and
refined sunflower oil.

2.Gemini™ refined cooking oils

Gemini refined cooking oils retain the freshness of the oil from the time it is packed to the
time it reaches the consumer. This is possible by the unique Freshness Intact Technique- a
unique packaging technology that preserves the benefits of the oil.

21
 Gemini now comes with the nutritional fortification of Vitamins
A, D and E. The benefits of vitamins ensure that your family stays healthy and fit. Available
in refined soybean, sunflower, groundnut and cottonseed, filtered groundnut and mustard oils
and vanaspati. Gemini is now the largest selling edible oil brand in Maharashtra*.

• Based on the Nielsen Company Retail audit data MAT December 2007.

3.NatureFresh® Purita Kachi Ghani pure mustard oil

NatureFresh® Purita is renowned for its purity and taste. With a pungency level of 0.27%,
which is higher than the highest AGMARK standard of 0.25%, Nature Fresh® Purita is the
best oil for cooking your favorite fried dishes. Nature Fresh® Purita ensures that your family
is full of vigor and health.

4.NatureFresh™ Oliante olive oil

The most exotic olive oil from the land of Antequera in Spain.

In an era where anything and everything is commercialized, the olives of Antequera continue
to preserve their absolute communion with Mother Nature that has existed for centuries.
NatureFresh™ Oliante comes from the olive trees over 600 years old. The oil takes three
years of patient processing and what you get is the healthiest and most exotic olive oil.

The handpicked olives that go into the making of NatureFresh™ Oliante remain almost
unaffected by time, true to their age and barely touched by modern technology. Nurtured in
such a land makes NatureFresh™ Oliante truly exotic.

22
Three kinds of NatureFresh™ Oliante to choose from

Each bottle of NatureFresh™ Oliante, be it Extra Virgin Olive Oil, Pure Olive Oil or Pomace
Olive Oil, brings the magic of olive alive.

• Extra Virgin Olive Oil is the highest quality of olive oil. To bring out the delicate
flavour in the first press, a panel of Cargill experts judges the olive for taste, mouth
feel and aroma to bring you NatureFresh™ Oliante Extra Virgin Olive Oil. As the
healthiest cooking medium, Extra Virgin Olive Oil is preferred for salads, or is served
at the table with bread for dipping. It is also added to soups and stews.
• Pure Olive Oil comes from the refining process of olive oil named "lampante" and
by adding a percentage of extra-virgin olive oil. Pure Olive oil is used for all kinds of
high heat cooking such as pasta, lasagna, stir fried vegetables and an array of Indian
dishes like aloo gobhi, chicken curry or even a chicken biryani.
• Pomace Olive Oil is a blend of Extra Virgin Olive Oil and refined Pomace oil.
Pomace Olive Oil is a very good baking and frying medium. It is popularly used to
make French fries, crispy fried chicken, baked potatoes and more.

Brands At a glance

The most exotic olive oil from Spain

23
  Target Customer

Retailers, Wholesalers, Distributors, Super Value Stores, Commercial users like Sweets
Retailers or Restaurants.

Cargill Cares
• Improves the well being of the community within which Cargill operates.
• Encourages employee participation in social work.

Ingredients of Gemini oils:

Nutrition Facts for Gemini Refined Sunflower (1L) {910gm@30`C}

Nutritional Information* Quantity

Apprx.Composition (when packed) per100 g

Energy (Kcal) 884

Protein (g) 0

Carbohydrate (g) 0

24
 Fat (g) 100
• Saturated fatty acids (g) 10.3
•Mono saturated fatty acids (g) 19.5
• Poly fatty acids (g) 65.8
• Trans Fatty Acids (g) <1gm

Cholesterol (g) 0

Vitamin A (mcg/100g oil) 750

Vitamin D (mcg/100g oil) 5

Vitamin E (mcg/100g oil) 273

Nutrition Facts for Gemini Soyabean oil (1L) {910gm@30`C}

Nutritional Information* Quantity

per 100 g
Apprx.Composition (when packed)

Energy (Kcal) 884

Protein (g) 0

Carbohydrate (g) 0

Fat (g) 100

• Saturated fatty acids (g) 14.3
•Mono saturated fatty acids (g) 22.5
• Poly fatty acids (g) 57.8
• Trans Fatty Acids (g) <1gm

Cholesterol (g) 0

Vitamin A (mcg/100g oil) 750

Vitamin D (mcg/100g oil) 5

Vitamin E (mcg/100g oil) 273

Nutrition Facts for Gemini Ground oil (1L) {910gm@30`C}

25
 Nutritional Information* Quantity
Apprx.Composition (when packed) per100 g

Energy (Kcal) 884

Protein (g) 0

Carbohydrate (g) 0

Fat (g) 100

• Saturated fatty acids (g) 16.3
•Mono saturated fatty acids (g) 46.5
• Poly fatty acids (g) 31.8
• Trans Fatty Acids (g) <0.5gm

Cholesterol (g) 0

Vitamin A (mcg/100g oil) 750

Vitamin D (mcg/100g oil) 5

Vitamin E (mcg/100g oil) 2273

SWOT Analysis For Gemini Oils

Strengths:
1. Lower price.
2. Presence of established distribution networks in the modern trade outlets.
3. Presence of well-known brands in FMCG sector.
4. Presence of better Nutrients.

Weaknesses:
1. Lower Positioning.
2. Weak packaging.
3. Less awareness among customers about ingredients.
26
4. Absence of promoters in outlets.

Opportunities:
1. Large no. of customers.
2. Rising income levels i.e. increase in purchasing power of consumers.
3. Quality product at relevant price.
4. Promotional-Schemes.

Threats:
1. Presence of competitors like Sundrop, Suffola, Fortune, Dhara etc.
2. Continuous change in the consumer behavior.
3. Tough competition in modern trade outlets.
.

Culture

Whether it is a thank you note or a formal award programme, we appreciate how recognition
shows peers, direct reports, and managers how they fit into our mission and why their
contributions are important. Cargill India employees can participate in a range of formal and
informal recognition programmes as well as interact with colleagues and leaders across our
many businesses, nationally and internationally.

The culture and environment at Cargill is one where employees are motivated and confident
enough to try new things out. They have opportunities to explore new ideas and are
supported by the management in implementation. As a result, company is in forefront of
delivering innovative products to the Indian consumers and implementing innovative and
cost effective processes Simplicity, Accountability and Collaborate are the core values that
run across the organization that bring people together in achieving our business goals and
deliver superior value to all our customers.

We follow a clear, open and transparent communication that ensures eliminating ambiguity
and drive simplicity. We live up to our commitments. We agree on goals, objectives and
strategies. We drive for flawless execution. We don't offer excuses; we offer solutions and

27
this is the mantra that builds accountability across the organization.We trust and respects
each other. We realize that we are much more valuable together than we are apart.
Everybody has something of value to contribute, and we collaborate and win as a team. We
provide an environment where one person can make a difference.

Our employees work in an environment where they have freedom to express, innovate and
create breakthrough solutions. Our employees are empowered, energetic and enthusiastic to
make a difference with an underlying and all encompassing passion in what they do. Our
people use good judgment and are decisive. They act with speed and always ensure flawless
execution.

Learning and development opportunities

At Cargill we are committed to attracting, retaining and training high performing people who
embrace the company’s vision and values. The means to achieve this is by maximizing
training and development to ensure that employees have the competencies required to
accomplish their business objectives as well as develop their career in the company.

Training opportunities include on-the-job learning, participating in company programs and

courses, and attending external programs based on nomination by managers and/or peers.
Employees also participate in performance management programs to create a road map for
their individual success at Cargill and alignment with organizational goals.

Internal mobility

We seek to offer employees career opportunities within Cargill India and promote an open
environment where employees can acquire new skills and learning. For employees who meet
the criteria and are willing to accept roles with higher responsibilities, we provide avenues
for growth & movement across Cargill businesses and geographies.

Equal Employment Opportunity (EEO)

Cargill maintains a policy of non-discrimination towards all employees and applicants for
employment. All aspects of employment with Cargill are governed by merit, competence,

28
suitability and qualifications, and will not in any manner be influenced by gender, age, race,
colour, religion, national origin or disability.

Corporate Responsibility

When William Wallace Cargill founded our company in 1865, he deliberately set out to
ensure that we earned and maintained a reputation for integrity, which he saw as a key
differentiator in those times. Corporate responsibility is part of everything we do. It is a
company-wide commitment to apply our global knowledge and experience to help meet
complex economic, environmental and social challenges wherever we do business. It is a
process of continually improving our standards, our actions and our processes.

Corporate responsibility extends not only to our own operations but to our wider
communities and is based on four commitments:

• We will conduct our business with high levels of integrity, accountability and
responsibility.
• We will develop ways of reducing our environmental impact and help conserve
natural resources.
• We will treat people with dignity and respect.
• We will invest in and engage with communities where we live and work.

We recognize our continued success depends on the growth and health of our communities
and partners, as well as the vitality and conservation of our natural resources. We are
working with a diverse group of global, national and local organizations to support
responsible economic development, help protect the environment and improve communities.

29
 Corporate responsibility in India and around the world

We strive to be a good citizen in the areas where we are privileged to conduct business. In
addition to the benefit of secure employment, we find various ways to support local
communities. Our Cargill Cares programs bring together our employees to serve
communities in partnership with external organizations.

Expect the unexpected...

More than half of all Cargill employees live and work in developing
>50 %
countries.

With the ability to sell more than 14 million tons annually, Cargill is one of
14
the leading marketers of salt products.
M
I
L
L
I
O
N

In India, where vitamin deficiency is major health concern, Cargill reaches

25
25 million people per month with cooking oil fortified with essential
M
vitamins.
I
L
L
I
O
N

Core competencies

These are the core competencies you'll find throughout Cargill:

30
 • Supply chain management
• Risk management
• Research and development

Risk management

The steady hand of experience: In today’s volatile markets, our customers look for a steady
hand of experience to help them manage their exposure to price risk.

For years, Cargill has been identifying, measuring and managing its own exposure to risk.
We also offer this service to our customers.

Company works with the customers in order to measure their exposure to risk and quantify
their risk tolerance. Then it develops and executes sound strategies that diminish the
volatility. By managing costumers risk as if it were company’s own, helps in keeping costs
within an established opportunity.

Analytical tools

Cargill has a broad range of analytical tools by which we measure and assess price risk. To
be sure, risk management is one of our company’s core capabilities. Every day, we buy
and move large volumes of commodities from where they are produced to where they
are needed.

Supply chain management

Moving goods from farm to factory

Moving massive amounts of raw materials from continent to continent and farm to factory is
both art and science. For more than 100 years, Cargill has been shaping its supply chain
management capabilities to the point where there are few equals in the world. In terms of the

31
volume and breadth of materials we move, the numbers of customers we serve, and the
significant numbers of partners we team with.

Optimizing supply chains

Optimizing supply chains through insightful strategy, inventory management, partner

collaboration, and radical operations planning has resulted in millions of dollars saved for
Cargill customers. In the redesign of a supply chain for a food manufacturer, for example, we
were able to reduce inventories by 28 percent. Expert execution of our supply chain
management strategies and tactics has led to a wide range of benefits, including:

• Improved cost efficiencies

• Improved revenues
• Faster time to market
• Faster product development cycles
• Enhanced customer and supplier relationships

Research & development

Scientific expertise that creates distinctive value

Our customers turn to Cargill for our scientific expertise when the challenge is enhancing an
existing product, improving process efficiencies, or uncovering a solution that helps them
launch a first-to-market innovation. Our goal is to leverage Cargill research and
development capabilities to generate distinctive value through new, improved products and
innovative ways to reduce costs or both.

Tailoring foods for local tastes and cultures

32
Cargill’s strong regional presence enables us to provide customers with the applications and
technical services support to create products tailored to local tastes and cultures.

Understanding both product ingredients and processes

Helping our customers create value includes deep understanding of both product ingredients
and product processes. Our technical teams include experts whose sole focus is effective and
efficient process solutions. Their expertise can help you reduce costs and generate added
value. Few, if any companies, can provide both global R&D support and regional solutions
that we can. Cargill’s breadth of knowledge is unique, but our real point of difference is the
ability to collaborate with customers and partners to solve complex business problems.

Deep knowledge and thought leadership within these competencies has come from deliberate
investments over time, and has forged a strong competitive advantage we can share with our
customers. The R&D team consists of a young team of dynamic scientists and technologists
who specialize in the research of multiple disciplines.

The key task of the team is to provide a competitive edge by developing new products that
are preferred by the consumers and by constantly adding value to the existing range of the
products through product, process or packaging innovations. Voice of consumer drives the
quality of products. Quality is built into new & existing products through rigorous research
and continually improved through plan-do-check-act (PDCA) cycle. Apart from the intensive
checks on raw material, packaging and factory dispatches, we also undertake product quality
assessment till the product reaches the retail stores. This enables us to look at the product
from consumer's eyes.

Sales & Distribution

Cargill has a network of 1000+ distributors spread across the country with an access over
1000 towns and reaches 2, 50,000 retail outlets to sell our products. The company has a
strong presence and a proactive stance with respect to modern trade.
There are direct selling agreements in place with key accounts like Reliance Retail, More,
Big Bazaar, Spencers, D-Mart, etc.

33
The company places a lot of importance to growing business with this fast emerging and
consumer friendly retail format. The company has several initiatives in place to provide value
to this channel including a specialized multi functional team to help cater to the specific
needs of these customers. At the same time, we realize the importance of the high frequency
stores and the value they offer to consumers and manufacturers alike.

Career Management Program

In Cargill a comprehensive career management program ensures every employee can realize
his/her career aspirations fully. Employees find their career journey as very exciting and
rewarding. It has clearly laid down career paths in every function to provide clarity on the
available career path options.
We offer an in-depth understanding of competencies and capabilities required at various
levels and functions, which provides guidance and direction to individuals for their own
career management.
Individual Development Plan (IDP) is a tool that we use to capture career aspirations and
development inputs to help employees realize their career aspirations. It provides the
building blocks that will provide the knowledge, skills, and contacts and the experience so
that the employees can get:

• Cross functional experience

• Cross business experience
• Cross geography experience ( including international experience)

RECRUITMENT AND SELECTION

Recruiting and selecting sales personnel is an important part of personal selling strategy and
also important for sales organizations. But after selecting sales personnel/ initial sales
training is required to bring new sales personnel up to expected productivity level and
continuing sales training is needed to maintain more experienced safes personnel to a high
level of efficiency it also requires motivational and supervisory efforts.

Corporate and direct sale associates recruit and select salesman or field executive on the basis
of job specification as desired by them considering the nature of job. These organizations set

34
forth in the job description a set of the qualifications that a person should posses in order to
perform the job satisfactorily.

RECRUITMENT
These organizations also have done the recruitment by using both the methods i.e. internal
sources and external sources. Internal sources imply recruitment from within the organization
while external sources imply recruitment from outside the organization.

Internal sources used by these organizations:

1. By giving promotions.
2. By asking their existing sales persons for contacts.

External sources used are as follows:

1. By recruiting former employees of their own organization.

2. Through employment agencies.
3. Sales force of other sales organizations.
4. Through educational institutions.

Cargill vs. Competitors

With growing quality consciousness and plummeting price differences between packaged
and non- packaged edible oils, the packaged edible oil sector will capture almost 50% of the
market share within few years. The packaged edible oil consumption is only about 20% of
the total 12.5 million tonne domestic consumption.

Due to advancement of packaging technology, the price difference between packaged and
loosely sold oils has significantly come down.

35
Cargill controls more than 12% of the packaged edible oil market. As a result of the increase
in health consciousness, consumers even in the smaller towns are gradually shifting to
packaged edible oils from loosely sold oils.

The packaged edible oil industry is growing at 10 % annually and half of the market would
be controlled by packaged oil manufactures within few years.

Cargill brands vs. other brands

With the competition increasing after the arrival of retail companies, maintaining quality
while keeping the prices down would be a challenged for all the packaged oil makers.

Cargill India sell around 5,00,000 tons of edible oil a year , including soya , palm ,
sunflower , groundnut and mustard oils besides hydrogenated fats , to wholesale trade ,
process food industry and retail customers. Its share is around 4% of the million tones of total
edible oil sold in the country in a year.

Other brands like Fortune of Adani wilmer Ltd. Having approximately 19% market share in
the entire edible oil market. Marico industries with a market share of 13-15% with brands
like Saffola and Sweekar together are old players with well known brands in the edible oil
industry hence gives tough competition to Cargill refined oils.

Consumer Voice – A monthly magazine of consumer interest

A government funded voluntary organization that works towards consumer education and
awareness, conducted a laboratory test on seven well-known brands of refined sunflower oil.
After testing them on all possible parameters like colour, adulteration, rancidity and fatty
acid profile, Naturefresh Acti-Lite and Gemini, brands from the house of Cargill, were rated
as the best quality and healthiest refined sunflower oils in the country.

For the first time in India, refined sunflower oil brands have been tested by an
independent government funded organization for their fatty acid profile and other
parameters like colour, rancidity etc. This was done and published in November 2008 to
scientifically assess and pinpoint exactly how healthy each refined oil brand is.

36
By this research, NatureFresh and Gemini cooking oils have been proved to be the healthiest
cooking oils in their respective categories.

NatureFresh Acti-Lite sunflower oil is extremely light oil that has high-unsaturated fat
content making it easier to break down. This lightness is powered by “Liteness Integrated
Technology” (LITE), which is delivered by the technologically advanced state-of the-art
plant ensuring that best attributes of the oil are preserved for `consumer’s health. Gemini
refined oil offers freshness as a differentiator. It uses “Freshness Intact Technology” (FIT)
which helps maintain the freshness of oil from packaging stage of consumption.

Ranking Of Sunflower Oils:

Brand- Sunflower Rank

NatureFresh 1
Gemini 2
Nutrela 3
Sweekar 4
Fortune 5
Dhara 6
Sundrop 7
Sunday 8

37
Cargill In India

38
 Cargill India Pvt. Ltd.

14th Floor, Building 9 A,

DLF Cyber City, Phase III,
Gurgaon-122002 (Haryana)
Tel: +91 124 2358939, 409 0489
Fax: +91 124 2358977

Registered office address Pune office address

Cargill India Pvt. Ltd., 111 Rectangle 1 7th Floor, South Block, Sacred world
District Center Saket Wanowrie, Pune- 411040
New Delhi - 110017
Tel: +91 114 6010389
Fax: +91 114 6010390

39
 “LITERATURE
REVIEW”

Customer behavior

40
 Customer behavior: a broad term that covers both individual consumers who buy goods
and services for their own use and organizational buyers who purchase business products.

Buying Behavior: Are the decision processes and acts of people involved in buying and
using products. Need to understand:
• Why consumers make the purchases that they make?
• What factors influence consumer purchases?
• The changing factors in our society.

Consumer behavior: the process through which the ultimate buyer makes purchase
decisions. It consists of the actions a person takes in purchasing and using products and
services, including the mental and social processes that come before and after these
actions.
Consumer- Is used to represent situations where a product can be consumed.
Customer- Is used to represent situations where a product can’t be directly consumed.
• A customer is the most important person ever in this office - - - - in person or by mail.
• A customer is not dependent on us – we are dependent on him.
• A customer is not interruption of our work – he is purpose of it.
• We are not doing favor by serving him – he is doing us a favor by giving us the
opportunity to do so.
• A customer is not someone to argue – nobody ever won an argument with customer.
• A customer is person who brings us his wants – it is our job to handle them profitably
to him & to ourselves.

So, we can say that consumer behaviour is all about selecting, seeking, purchasing,
using & disposing of goods & services.

Why Consumer Behaviour?

 Consumers don’t always act or react as the theory would suggest.

 Consumer preferences are changing & becoming highly diversified.

41
  Consumer research has vividly pointed out that consumers dislike using identical
products and prefer differentiated product to reflect their special needs, personalities
and lifestyles.
 Meeting special needs of customer requires market segmentation.
 Implementation of marketing concept.
 Rapid introduction of new product with technological advancement.

Types of Customer

Customers can be classified into two main groups; internal and external customers. An
internal customer is someone who works for the organization, possibly in another department
or another branch. External customers are essentially the general public.

These two groups can be further broken down:

Internal Customers

 People working in different departments

 People working in different branches

External Customers

 Individuals
 Individuals of different needs
 Individuals of different cultures
 Business people
 Groups

Consumer Buying Behaviour

42
Needs and Expectations

Customers have needs and expectations that need to be observed by the organization. A need
is something that the customer needs, like car insurance being low. An expectation is
something that the customer won't necessarily get but they expect to get, like a car getting
from a person's place of departure to their destination.

In general there are three ways of analyzing consumer buying decisions:-

Economic models - These models are largely quantitative and are based on the assumptions
of rationality and near perfect knowledge. The consumer is seen to maximize their utility.

Psychological models - These models concentrate on psychological processes such as

motivation and need reduction. They are qualitative rather than quantitative and build on
sociological factors like cultural influences and family influences.

Consumer behaviour models - These are practical models used by marketers. They
typically blend both economic and psychological models.
A Model of Consumer Behavior

• Who constitutes the market? ( Occupants )

• What does market buy? ( Objects )
• Why does the market buy? ( Objectives )
• Who participates in the buying? ( Organization )
• How does the market buy? ( Operations )
• When does the market buy? ( Occasion )
• Where does the market buy? ( Outlets )

Model of buyer behavior

Marketing Stimuli Other Stimuli

Product Economic
Price Technological
Place Political
Promotion Cultural

Process –
43
Buyer characteristics Buyer’s decision process
Cultural Problem recognition
Social Information search
Personnel Evaluation
Psychological Purchase decision
Post purchase decision

Output –

Buyer’s decision
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount

A consumer buying behaviour is influenced by:

1. Cultural factors
a) Culture is a whole set of values, traditions, beliefs, attitudes and ways of doing
things of a reasonably homogeneous set of people.
Culture: values, beliefs, perceptions, preferences, and tastes handed down from one
generation to the next.
Eg. Indian Culture:
Children feel the responsibility of taking care of aged parents.
A father owning the responsibility of getting his Daughter married in a well to do family.

b) Subculture: subgroup of culture with its own, distinct modes of behavior. A group of
people who have approximately equal social position as viewed by others in society. It can be
related to occupation, education, & community participation where a person lives.

Subcultures are subgroups within the larger or national culture with unique values, ideas, and
attitudes, based on common life experiences. It comprises of relatively homogeneous &
enduring divisions in a society which are hierarchically ordered & whose members share
44
similar values, interests and behavior. Cultures are not homogeneous entities with universal
values. Subculture influences food preferences, clothing choices, and recreation & career
aspirations.
E.g. Caste-system in India
Subcultures can differ by:
Religion
Place of residence
o Nationality, religious groups, racial groups, geographical areas.

c) Social classes: groups whose rankings are determined by occupation, income,

education, family background, and residence location etc. These are hierarchically
ordered and its member shares similar values, interests and behaviour.

W. Lloyd Warner identified

Six classes:
o Lower class
o Upper-upper
o Lower-upper
o Upper-middle
o Lower-middle
o Working class

Social classes show distinct product & brand preferences in many areas such as clothing,
furnishings, leisure etc.

II. Social factors.

a) Reference groups – Reference groups are people to whom an individual looks as a

basis for self-appraisal or as a source of personal standards.
Reference groups: groups whose value structures and standards influence a person’s
behavior. Requires two conditions:
• The purchased product must be one that others can see and identify

45
 • The purchased item must be conspicuous; it must stand out as something unusual, a
brand or product that not everyone owns

Reference groups influence in at least three ways.

1. Expose individual to new behavior & lifestyle
2. Influence a person’s attitude & self-concept.
3. Create pressures for conformity-actual product/brand choice.

Personal Influence
1. Primary group – Family, friends, neighbors.
2. Secondary groups – Religious, professional.
3. Aspiration.
4. Disassociate group.

b) Social Role & Status: A person participates in many groups- family, clubs, organizations
etc. The person’s position in each group can be defined in terms of roles and status. A role
consists of the activities a person is expected to perform. Each role carries a status.

c) Family – It is the most important consumer- buying organization in society and family
members constitutes the most influential primary reference group.

1. Husband dominated.
2. Wife dominated.
3. Equal.
.

III. Personnel factors.

a) Age & life cycle stage- People buy different goods and services over a lifetime.
Marketers often choose life-style groups as their target markets. They also pays close
attention to changing the life circumstances- divorce, widowhood, remarriage and
their effect on consumption.

b) Occupation & Economic circumstances: Occupation also influences consumption

patterns. Marketers try to identify the occupational groups that have above average

46
 interest in their products & services. Product choice is greatly affected by economic
circumstances.
c) Lifestyle-- Pattern of living in the world as expressed in person’s activities, interests
& opinion. People from the same subculture, social class & occupation may lead
quite different lifestyles.
d) Personality—Each person has personality characteristics that influence his or her
buying behaviour. Personality basically means a set of distinguishing human
psychological traits that lead to relatively consistent & enduring responses to
environmental stimuli.
e) Self concept or self image—Marketers attempt to develop brand personalities that
will attract consumers with the concept of self-concept (how he views himself).

IV. Psychological factors

a) Motivation—The individual motivation is the most important factor involved in

indicating & governing his or her behaviour in his/ her buying process. A need
becomes a motive when it is aroused to a sufficient level of intensity.
b) Perception – Selects, organizes & interprets information in order to make sense out
of it. It basically tells how we locate towards the things; it is the interpretation of
sensory data.
 Selective attention: Attracting consumers notice.
 Selective distortion: Tendency to twist information into personal
meaning and interpret information in a way that will fit into customers pre
conceptions.
 Selective retention: It is all about storing the information in the
memory of the consumers and recalling the message when consumer is in
buying situation.
c) Learning—It involves change in an individual behaviour arising from experiences.
d) Beliefs & attitudes:
 Belief is a descriptive thought that a person holds about something.
 Attitude describes person’s enduring favorable or uncomfortable cognitive
evaluation, emotional feeling & action tendencies toward some object or idea.
47
 .

Buying motives:

Motive is a need that stimulates the individual behaviour.

1. Fear. 2. Desire for money.

3. Vanity. 4. Pride.
5. Fashion. 6. Possession.
7. Sex & romance. 8. Love & affection for others.
9. Health & physical well being.
10. Control & convenience.

Factors influencing consumer buying behavior:

Factors influenci
buying b

Buying decision process Pr

Buying roles –
Initiator – who first suggest the idea of buying a particular product or service?
Influencer – whose view or advice influence decision?
Decider – who decides whether to buy, what to buy, how to buy or where to buy?
Buyer – who makes actual purchase?
48
Buyer
 User – who consumes or uses the product or service?

Types of buying behavior –

High involvement Low involvement

Significant brand Complex buying Variety – seeking buying

difference. behavior behavior

Few differences Dissonance – reducing Habitual buying

between brands. buying behavior. behavior

Stages in the buying decision process –

a. Need recognition –
o Internal or external stimuli.

b. Information search –
o Milder search – heightened attention.
o Active information search.

Consumer information sources –

 Personnel – Family, friends, neighbors, acquaintance.
 Commercial – Advertising, salesperson, dealers, packaging.
 Public – Mass media, consumer rating organization.
 Experimental – Handling, examining, using product.

Sets involved in buying process

 Total set – Awareness – Consideration – Choice – Decision.

c. Evaluation of alternatives
o Product attributes.
49
o Importance weights.
o Brand beliefs or brand image.
o Utility function.
o Evaluation procedure.

Marketer’s strategy –

o Modify the product.

o Alter beliefs about the brand – DHL – Jumbo pack.
o Alter beliefs about the competitor’s brands.
o Alter importance weights – Caption cook.
o Call attention to neglected attributes – Hamam.
o Shift buyer’s ideals.

d. Purchase decision –

Factors intervene between the purchase intention & purchase decision.

o Attitudes of others.
o Unanticipated situational factors.
o Perceived risk.

Purchase sub decisions –

o Brand decision.
o Vendor decision.
o Quantity decision.
o Timing decision.
o Payment method decision.

e. Post purchase behavior –

Post purchase satisfaction –

o Product expectation & perceived performance.
o Disappointed – Satisfied – Delighted.

Post purchase actions –

o Dissatisfied customer.
o Takes some action – take no action.
o Take some form of public action.
 Seek redress directly from business firm.
 Take legal action to obtain redress.
 Complain to business, private or government agency.
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Post purchase use & disposal –

1. Get ride of it temporarily

a. Rent it.
b. Loan it.

2. Get ride of it permanently

a. Give it away.
b. Trade it.
c. Sell it.
d. Throw it away.
e. To be sold or To be used
Direct to consumer
Through middle man
To middle man

3. Keep it
a. Use it to serve original purpose.
b. Convert it to serve a new purpose.
c. Store it.

The four type of consumer buying behavior are:

1. Routine Response/Programmed Behavior--Buying low involvement, frequently

purchased low cost items; need very little search and decision effort; purchased almost
automatically. Examples include soft drinks, snack foods, milk etc.

2. Limited Decision Making--Buying product occasionally, when you need to obtain

information about unfamiliar brand in a familiar product category, perhaps. Requires

51
 a moderate amount of time for information gathering. Examples include Clothes--
know product class but not the brand.

3. Extensive Decision-- Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products.
High degree of economic/ performance/psychological risk. Examples include cars,
homes, computers, education. Spend a lot of time seeking information and deciding.
Go through all six stages of the buying process.

4. Impulse buying-- No conscious planning.

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 Title

Objectives

Scope of Study

Significance of the Study

A) Title:- “Study on Consumer Buying Behaviour of Gemini oils in Modern

Trade Outlets”, Pune.

B) The main objective of this project:

 To study the consumer buying behaviour of Gemini oils in all the modern

trade outlets in Pune.

53
 To recommend the various strategies and techniques to improve the sales
volume of Gemini oils.
 To find out the strength, weakness, opportunity, threats of Gemini oils and

to suggest ways to promote the sell.

 To understand the customer satisfaction level of Gemini oils.
 To identify the hidden expectations of customers from the Gemini oils.

 To find awareness of the respondents regarding Gemini oils.

 To find out the new target customer for the Gemini oils.

C) Scope of the study:

The main purpose of the research is to understand the customer consumption, perception and
attitude towards Gemini oils of Cargill. This project helps in understanding how the customer
takes the purchasing decision and what the factors that they have taken into considerations
are. The various factors that can affect the purchasing decision like quality of the product,
brand image in the market and regulatory in the supply etc has analyzed.

This will give opportunities to researcher to get the brief idea about the study and the
limitations in the research and they can try to cope up with those limitations. The
organization can utilize the information to formulate and present their market strategy
according to the customer expectation.

D) Significance of the study

1) Significance for the Industry

A study of the industry plays an important role in recognizing the stand where the company
lies in the market. The study also includes various other aspects including taste and
preference, desires, wants, requirements of the consumer.

54
It also helps to determine the satisfaction level of the consumer, so that the company can
rectify the errors made but them in order to give effective services. Thus, a study of industry
contributes its significant role.

2) Significance to the Researcher

Researcher prepares a questionnaire in order to find the responses from the consumer.
The questionnaires were designed on the primary objectives and were of both open ended
and close ended.
 For the accomplishment of the project
 For suggesting new market strategies
 In order to collect the feedback of the consumers.
 To find out the new target customer for the Gemini oils
 In order to study the consumer buying behaviour of Gemini oils
 For the SWOT analysis of Gemini oils.
 In order to understand the customer satisfaction level and the hidden expectations
regarding Gemini oils.

55
 “RESEARCH
METHODOLOGY”

Marketing Research
Marketing research is systematic problem analysis model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.
The research process can be said to be circular over a period of time. Exploratory research
may define hypothesis that are then tested / verified by conclusive research but in the latter
process, the conclusive research may develop new ideas, opportunities of new difficulties.

56
With the ever increasing complexity of marketing and business activity, marketing research
has also increased complexity. Today carrying out research relating to customers, products
and market requires specialized skills and sophisticated techniques. Marketing research has
emerged as highly specialized functions of marketing management.

Research Methodology

A) Research design
A research design is the specification of the methods and procedures for acquiring the
information needed. According to my research design, I have performed the following steps
in the project.
 To decide the objective, scope & significance of the research.
 To determine the most suitable method of research.
 To determine the sources of data.
 To decide the appropriate research instrument for data collection.
 To determine the suitable sample design and sampling size.
 To conduct the field survey for data collection.
 To process and analyze the data.
 To prepare the research report.

B) Data sources
There may be different types of information and data, some of the information may be
published while some is unpublished; some is complete and some is incomplete. And some is
reliable data and some is biased; some information may be available without charge and
some may acquire nominal expenditure.
It is necessary for the researcher to know the kind of information which is usually employed
in marketing research work and the types of sources from which it is generally collected.

Types of data
 Primary data
 Secondary data
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Primary data
Primary data is being collected during the course of asking questions by performing
survey. Primary data is obtained through respondent, either through questionnaire or through
personal interviews.
Secondary data
Secondary data are statistics not gathered for the immediate study but for some other
purpose. They may be described as those data that have been compiled by some agency other
than the users.

C) Research approach
The research assignment under focus was aimed at gathering some valid information about
the consumer buying behavior of Gemini oils in the modern trade outlets in Pune itself.
Survey was found to be the most suitable method. Keeping important factors like time frame,
cost and the like in the mind. It is the most widely used approach in data collection and is the
most suited for descriptive research.

The reasons behind selecting direct survey were as follows:-

 Provide large and faster coverage.
 Low cost involved.
 One to one interaction with the customer.
 Data easier to compile and categorize.
 Analysis done on the basis of the listed question.

D) Research Instrument
The various instruments available for collection are:-
Mail Interview
Telephone interview
Personal interview
Questionnaire Method.

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Questionnaire
This method of data collection is quite popular particularly in Case of big enquires. It is
being adapted by private and public organizations and even by Government. In this method a
questionnaire is given to the person concerned to answer the questions. A questionnaire
consists of a number of questions printed in a definite order on a form or a set of forms; the
respondents have to answer the questions on their own. To be successful the questionnaire
should be comparatively short and simple.

Questions should proceed in logical sequence moving from easy to more difficult questions.
Personal and intimate questions should be left to the end. Technical terms and vague
expression capable of different interpretation should be avoided in a questionnaire.

Questions may be dichotomous (Yes or No answer) multiple choices or open ended .In
making research carefully chosen questions and their forms working and sequence is
important. By considering all the facts the Questionnaire was designed. This is a type of
structured questionnaire.

The questionnaire method offers various advantages such as:-

 It is cheaper and faster method of primary data collection.
 Since all the questions are formulated in advance all the required information can be
obtained in an orderly and systematic manner
 It offers maximum control over the interviewing process.

E) Sampling Plan
The process of observation from the element of a large population may be expensive, time
consuming and difficult. It will be cheaper and quicker to collect information from a sample
plan of the population. A sample is a fraction of a subset of population through a valid
statistical procedure so that it can be regarded as representative of the entire population. The
valid statistical procedure of drawing sample from the population is called sampling.
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  Sampling Units :- (Who is to be surveyed)
It gives the target population that will be sampled. This research is related to the individual
customer segment. For this research various Gemini oils user were the target respondents. A
decision has to taken concerning of sampling unit before selecting sample. It is the first stage
in developing any sample design to define the set of objects.

Thus the target respondents were: - Customers of Gemini oils in Modern Trade Outlets.

 Sample Size: (How many people to be surveyed)

Large sample gives reliable results than small sample. But it is not feasible to survey entire
target population. Being aware of the time and cost constraints, this project maintained
sample size of 100 respondents.

 Sampling Area
The primary data was collected through survey that was systematically carried in Modern
Trade Outlets in Pune. The responses of the respondents where recorded in the questionnaire
prepared for them through questionnaires with oral interpretation.

 Sampling Technique
The study included face to face interviews with the samples as described. It is necessary to
opt for this method as the study demands qualitative analysis as well which can best be
obtained by face to face interviews.
The procedure of sampling adopted during the course of project was simple random
sampling. Once the sampling plan has been determined the market research must decide how
the subject should be contacted.

In this project considering the sample size, objectives and time available, personal
interview as contact method have been used. The interview method of collecting data
involves presentation of oral and verbal stimuli and replying terms of oral verbal
responses.

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There are basically 2 types of Sampling technique-

1. Probability Sampling

A probability sampling method is any method of sampling that utilizes some form of random
selection. In order to have a random selection method, it must set up some process or
procedure that assures that the different units in your population have equal probabilities of
being chosen.

2. Non-Probability Sampling

In non-, the sample is selected in such a way that the chance of being selected of each unit
within the population or universe is unknown. Indeed, the selection of the subjects is
arbitrary or subjective, since the researcher relies on his/her experience and judgment.

The research design used in the project includes probability sampling and the type of method
used is simple random sampling.

Simple random sampling refers to a sampling method in which population consists of “n”
objects, sample consists of “n” objects and all possible samples of “n” objects are equally
likely to occur. The main benefit of simple random sampling is that it guarantees that a
sample chosen is representative of a population. It ensures that the statically conclusions will
be true.

There are various advantages of simple random sampling-

a) It gives each element in the population an equal probability of getting into the sample and
all choices are independent of one another.
b) It gives each possible sample combinations an equal probability of being chosen.

F) Types of Research- (Exploratory/Descriptive/Experimental Research)

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  Exploratory research: Exploratory research is also termed as formulate research
studies. The main purpose of such studies is that of formulating a problem for more
precise investigation or of developing the working hypotheses from an operation
point of view. The major emphasis in such studies is on the discovery of ideas and
insights. As such the research design appropriate for such studies must be flexible
enough to provide opportunity for considering different aspects of a problem under
study.
Inbuilt flexibility in research design is needed because the research problem, broadly
defined initially is transformed into one with more precise meaning in exploratory
studies, which fact may necessitate changes in the research procedure for gathering
relevant data.

 Descriptive research: Descriptive research studies are those studies which are
concerned with describing the characteristics of a particular individual, or of a group,
whereas diagnostic research studies determine the frequency with which something
occur or its association with something else. The studies concerning whether certain
variables are associated are examples of diagnostic research studies.

 Experimental research: Hypotheses testing research studies (generally known as

experimental studies) are those where the researcher tests the hypotheses of casual
relationship between variables. Such studies require procedures that will not only
reduce bias and increase the reliability, but will permit drawing inferences about
casualty. Usually experiments meet this requirement.

Thus, the type of research used in the above study is a kind of Descriptive Research.

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 “ LIMITATIONS”

Limitations

Every work has some limitations. These are extent to which the process should not exceed. In
this project, following limitations can be considered:-

1. Sometimes people behave artificially and it leads to faulty conclusions.

2. Less availability of information about the company and the where about.
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 3. The sample size being taken for drawing a conclusion was too small to get an
accurate result.
4. The survey has been done in Pune and thus the psychological condition of other parts
may differ from rest.
5. During the survey I found that consumers were not interested to answer the questions
that were given to them.

6. The research is confined to modern trade outlets of Pune and does not necessarily
shows a pattern applicable to all of Country.

7. Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.

8. In a rapidly changing industry, analysis on one day or in one segment can change
very quickly. The environmental changes are vital to be considered in order to
assimilate the findings.
9. I was having the time limitation which was fixed by the company itself.

10. People i.e. the customers were having the less information about the company various
product.

11. Lack of visibility of the brand in terms of the proper knowledge about the quality of
the product which affects the purchasing activity of the customer. Though the
advertisement has been launched recently it would take time to stabilize in the
memory of consumers.

All the above mentioned statements are the limitations of this project. Sometimes a language
barrier was there while talking with the customers. The study has been done by taking and
keeping all the limitations in mind. The project is completed in the given period of time. As
understanding and analyzing the consumer purchasing pattern in this span of time was a big
task to accomplish.

Some of the assumptions made while doing this project are given below
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1) It has been assumed that sample of about 100 customers represents the whole of the
population.
2) The information given by the customer was unbiased.

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 “RECOMMENDATIO
NS”

RECOMMENDATIONS
These were the following recommendations which were given to the company.
These are as follows:-

1. Consumers scheme: Launching consumer’s scheme could be another way of

increasing sales like Dalda sale went up because of the scheme of free bowl so similarly we
can come up with other schemes like scratch card, or a free cook-book etc.

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2. Awareness: Making the costumers aware about the harmful effects of using cheap low
quality oils and highlighting health benefits of branded oils, then consumers will definitely
ask for Gemini oils and not go for any other brand. Overall customers are having delightful
experience and the remaining can be cover being more accountable to their grievances. In
order to make people aware about the product, creative promotional campaigns, some stalls
should be conducted.

3. Product Positioning: Starting the Advertisement for Gemini oils with much focus on
its ingredients & its benefit for a human being. This way we can capture the market of
Saffola which is recommended for heart patients.

4. Media marketing: This includes ads on TV aired at prime time shows. Tie up with
certain cookery programmers’ and the cook shown cooking dishes with Gemini oils.TV
Commercial is the most important way to make the people aware about Cargill products.

.
5 Product Bundling: To make people aware about other not so popular oil of Gemini.
we can do-

 Joint bundling – 2 products offered for one bundled price.

 Leader bundling – a leader product like Soyabean oil is offered for discount if purchased
with a non leader product.
 The Company should also introduce new affordable products for lower segment
group.

6. Packaging:

Packing of the product is as important as the product itself.

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  These corners are relatively weak and once they get a hit
it starts leaking. Some of the customer has got this this type
of problem which was making them reluctant to keep the
Product. If we can provide a CARRY BAG on the same
packing the above problem can be solved up to an extent.
This problem is with every variants of Gemini.

7. Pricing: Organization should make sincere pricing for their core product because
pricing is a very critical and sensitive issue while launching any product or inducing more
future in existing product in such a highly competitive market.

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8. Promotion: Organization should spend more in the process of advertisements,
promotion, campaign and they also have to strengthen their channels of communication with
customer needs. The customers are not still not aware of the range of products, so the
company must go for heavy promotion schemes.

9. Relationship Building: Company should see to it that sales men are paying frequent
visits at the modern trade outlets. They should try to meet the requirement of the customers
and the promoter must try to build a healthy relationship with them.

10. Channel of Distribution: The company should improve their channel of

distribution, so that the problem or the question of availability does not arise.

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 “CONCLUSION”

CONCLUSION

FMCG is one of the fastest moving industries, company has to create right kind of brand and
product awareness, so that people can have the product knowledge and choose the product
according to their suitability, be competitive in the prices and the quality standards.

Cargill should concentrate much on the quality as non-quality oil products can harm human
life. Company can also improve a lot in both the areas of market share and awareness level if
it follows the right path consistently.
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The main thing is to create more awareness of a Cargill product in customer, dealers and give
some more attractive schemes, rebates to the dealers to take edge on our competitors.
Company needs to put little more efforts to spread the awareness of the quality oil products
and to make customers understand how non-quality oil products can harm a human life.

Although the findings suggest overcoming some missing links by taking into account the
response provided by the existing customer base. Suggestion for which are recommended in
the project report.

Cargill products have shown a tremendous progress in the field of oil industry and in the
future the company should maintain a good relationship with the existing customers by
satisfying their needs and wants.

Health care ministry should conduct oil and its ingredients inspection and should take
effective steps to stop the sale of non-quality products and it should also look that people go
through quality products.

Positioning and creation of a brand is becoming more and more important to companies as
they try and reach out to customers. As competition becomes harder for nearly all companies
and organizations it is becoming more and more important to have that “little extra” that
something makes you different from your competitors.

In today’s scenario customer is the king and leaving behind the concept of “Customer
Satisfaction” the level gas rose to the concept “Customer Delight”, hence for an effecting
marketing and increasing sale it is very important to identify the customer’s need for which a
study of consumer behaviour is very important aspect.

Consumer behaviour can be defined as an activity focused on the purchasing, consuming and
using of the products by making decisions before and after purchasing. Consumer behaviour
upon oil products can be influenced by various factors and elements. Cultural developments

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can be mentioned as one of the most important and effective factors influencing behaviour of
the consumer, attitudes and perception toward oil products.

However, it can be assumed that customers are products of their culture and their social
groupings. Meanwhile, the influence of demographic factors like gender, age, education,
income, family-size etc on consumer behaviour and purchasing pattern was obvious and
concluded.

Market of edible oils in India is captured by various companies and their brand products are
well known across the country.
Hence standing out as a different brand name in the market requires a good marketing
strategy of brand building through various penetration levels in the market and working on
the customer relationship management.

Since the way prices are fluctuating these days, focus should not be just on the premium oils
catering to the highly-conscious market segment instead companies should also offer a range
of oils at different price points, while assuring consumers of quality through their brands.

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 “BIBLIOGRAPHY”

BIBLIOGRAPHY

WEBSITES REFERRED:-

1) www.google.com

2) www.cargill.com

3) www.ghallabhansali.com

4) www.bestindiansites.com
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5) www.wikipedia.com

6) www.fundoodata.com

7) www.naukrihub.com

8) www.chillibreeze.com

9) www.financialexpress.com

10) www.hemonline.com

BOOKS REFERRED:-.

1) Magazines : Frontline, Outlook, Business World

2) Journals published by Cargill.

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