A PROJECT REPORT ON

Market Mapping of Fragmented Food Service

CARGILL INDIA PRIVATE LIMITED

Submitted By Mohd.Saba Salahuddin

Submitted To Punjab Institute Of Management & technology

Table Of Contents : Sr.No. Topic

1. 2. 3. 4. 5. 6. Acknowledgement Executive Summary Introduction to Industry Introduction of Company Literature Review Title, Objectives , Scope & Significance of the study Research Methodology Facts & Findings Data Analysis, Presentations and Data Interpretations Limitations Recommendations Conclusion Bibliography Annexure

Page No.

7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

INTRODUCTION TO THE INDUSTRY

Fast moving consumer goods

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 , Nestl , Unilever , Procter & Gamble , CocaCola , 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. Its 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 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 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. 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
Hindustan Unilever Ltd.

Position 1 2

ITC (Indian Tobacco Company)

Nestl India

3 4 5

AMUL

Dabur India

Asian Paints (India)

6 7 8

Cadbury India

Britannia Industries

Procter & Gamble Hygiene and Health Care

Marico Industries

10

Scope of the Sector

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the 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.

Spending Pattern
An increase is spending pattern has been witnessed in Indian FMCG market. There is a 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 export 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.

Market Opportunities
Vast Rural Market----Rural India accounts for more than 700 Million consumers, or 70 percent 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 percent 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.

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 advantage 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 outsource 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 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.

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 consumers 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 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 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 Cargills 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

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. 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.

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.

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:
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 countrys 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 the worlds 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 tonnes annually. It has around 10% share of the edible oil market. It has the ability to absorb a heterogeneous variety of oils, which do not generally find direct marketing opportunities because of consumers preference for traditional oils such as groundnut oil. Mustard oil, sesame oil etc. For example, newer oils like soyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and forest origin had found their way to the edible pool largely through vanaspati route. 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 its 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.

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 oilsand vanaspati. Gemini is now the largest selling edible oil brand in Maharashtra*.

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

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.

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

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 Encourages employee participation in social work.

Cargill operates.

SWOT Analysis For Cargill 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. 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 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 companys 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, 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 We

will treat people with dignity and respect. 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.

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.

Core competencies
These are the core competencies you'll find throughout Cargill:
Supply chain management Risk management Research and development

Risk management
The steady hand of experience: In todays 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 companys 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 companys 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 thevolume 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 culture

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

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. 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.

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 he 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. 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. 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 consumers 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 Naturefresh Gemini Nutrela Sweekar Fortune Dhara Sundrop Sunday Rank 1 2 3 4 5 6 7 8

Cargill In India

Cargill India Pvt. Ltd.

14th Floor, Building 9 A, DLF Cyber City, Phase III, Gurgaon-122002 (Haryana) Tel: +91 124 2358939, 409 0489

Consumer Buying Behaviour

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 Product Price Place Promotion Other Stimuli Economic Technological Political Cultural

Process
Buyer Characteristics Cultural Social Personnel Psychological Buyers Decision Process Problem Recognition Information Search Evaluation Purchase decision Post Purchase decision

Output
Buyers 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 similar values, interests and behavior. Cultures are not homogeneous entities with universal values. Subculture influences food preferences, clothing choices, and recreation & career aspirations.

Subcultures can differ by: Religion Place of residence 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.

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 interest in their products & services. Product choice is greatly affected by economic circumstances. c) Lifestyle-- Pattern of living in the world as expressed in persons activities, interests & opinion. People from the same subculture, social class & occupation may lead quite different lifestyles. d) PersonalityEach 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 imageMarketers attempt to develop brand personalities that will attract consumers with the concept of self-concept (how he views himself). IV. Psychological factors a) MotivationThe 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) LearningIt 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 persons enduring favorable or uncomfortable cognitive evaluation, emotional feeling & action tendencies toward some object or idea.

Buying motives:
Motive is a need that stimulates the individual behaviour.

1. Fear. 3. Vanity. 5. Fashion. 7. Sex & romance. 9. Health & physical well being. 10. Control & convenience.

2. Desire for money. 4. Pride. 6. Possession. 8. Love & affection for others.

Title Objectives Scope of Study Significance of the Study

A) Title:- Market Mapping Of Fragmented Food Service Outlets,

B) The main objective of this project: To study the consumer buying behaviour of Gemini oils in all the modern trade outlets in Pune.

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. 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 Cargill oils

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 stepsin 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 s Secondary data