TRAINING PROJECT REPORT On

ANALYSIS OF VARIOUS BRANDS OF SOYABEAN REFINED OIL IN THE MARKET

Training at- BATHINDA CHEMICALS LIMITED, BHATINDA.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION IN MARKETING (2009-2014) Submitted to:
Mr. Ravi Kumar

Submitted by:
Gurpreet Singh

MBA (IC) 4th year

Roll No. 413

UNIVERSITY SCHOOL OF BUSINESS STUDIES, GURU KASHI CAMPUS TALWANDI SABO.

CONTENTS
ACKNOWLEDGEMENT EXECUTIVE SUMMARY 1. THE MITTAL GROUP 2. VISION & MISSION 3. COMPANY HISTORY 4. MITTAL GROUP OF COMPANIES 5. BOARD OF DIRECTORS 6. SOCIAL ACTIVITIES 7. THEIR PARTNERS 8. ACHIEVEMENTS 9. BHATINDA CHEMICALS LIMITED 10. MAJOR OTHERS PLAYERS 11. ABOUT THE PROJECT 12. RETAILERS AND CUSTOMERS 13. RECOMMENDED MARKETING STRATEGY 14. RESEARCH METHODOLOGY 15. ANALYSIS OF RETAILER RESPONSES 16. ANALYSIS OF CUSTOMER RESPONSES 17. SUGGESTIONS OF THE RETAILERS & CUSTOMERS 18. CONCLUSIONS & RECOMMENDATIONS 19.BIBLIOGRAPHY I II 1 2 2 4 11 12 13 14 15 16 19 26 27 37 40 46 53 53 55

ACKNOWLEDGEMENT The research on Analysis of various brands of soyabean refined oil in the market , was assigned to me as my Training project. I have tried my best to present this information as clearly as possible using basic terms that I hope will comprehended by the widest spectrum of researchers, analysts and students for further studies.

I am thankful to Mr.S D Saini, Company guide for his guidance and support. Mere acknowledgement may not redeem the debt I owe to my parents for their direct/indirect support during the entire course of the project.

Gurpreet Singh MBA (IC) 4th year Roll No.- 413

EXECUTIVE SUMMARY

The objective of this research is to determine the customer as well as retailers preferences regarding different soya bean brands which result in their market share. It involves the study the consumers buying behavior and attitudes towards a variety of attributes and factors, which help them in decision-making.

First, part of the project consists of company background, History, Management of Company, Social activities, Achievements etc. and also about other major player in the market. The second part consists of the introduction about the project and soyabean refined Oil market in india and recommended marketing satrategy for the company. It also includes the Research Methodology followed during the project.

Later I went through the process of filling the questionnaires from 50 retailers & 100 customers selling and consuming soya oil, both retailers and customers were taken into account to make this research more effective. Secondary data from various sources like magazines, a journal etc has also been taken.

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

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

Mittal Group started of its business activity about 30 years back in 1976 at Bathinda (Punjab) with the installation of small Solvent Extraction Unit by Sh.D.D.Mittal Under the name Bathinda Chemicals and Banaspati Mills Pvt.Ltd. In early 80s the business was headed by his sons Sh.Rajinder Mittal , Sh.Manoj Mittal, Sh.Vinod Mittal. With the continuous expansion-cummodernization plans the unit has been established as an integrated edible oil complex, one of the biggest in north India. Another Proprietorship concern M/s R.K. Exports, Bathinda owned by Mittal Group has been established in 1992 and doing business of Import & Export of edible oils & various food stuff Items. In 1990 the group entered into the business of Real Estate as developers and since than the group has undertaken large residential and commercial Projects. On the horizon of the Real estate development and construction, Mittal Group has registered a remarkable presence in the North India, especially in Delhi, Haryana, Punjab, Madhya Pradesh, Rajasthan & Himachal Pradesh. Today, the Group is accredited with some magnificent Residential Township as well as Commercial, Shopping malls & Hotels edifices which have become benchmark of architectural brilliance.

1. VISION & MISSION

VISION The Vision is to Grow The commitment is to Perform The excellence is to deliver consistently.. MISSION The aim is to create a hallmark in the Edible oil, Real Estate & Distillery industry with Improvisation, Novelty and Uniformity as the trademark of our business which is gradually changing the look of our country Rajinder Mittal, chairman Mittal Group

2. Company History
The Company was incorporated on 3rd February as a Pvt. Ltd. Company under the name of Bhatinda Chemicals and Banaspati Mills Pvt. Ltd. with the Registrar of Companies Punjab Himachal Pradesh and Chandigarh at Jalandhar which was later on changed to Bhatinda Chemicals Pvt.Ltd on 6.5.1985. - Bhatinda Chemicals Ltd was promoted by Mr. Dwarka Das Mittal and his associates. - The company is engaged in manufacturing of Vanaspati Ghee Refined edible oils Solvent extracted oils Rice Bran oils and Parboiled rice Rice Bran De-oiled cakes. 1979 - The capacity of the Sovent plant was doubled to 80 TPD and 12 TPD Hydrogenation plant was financed by PSIDC. 1989 - The Company was converted into a deemed Public Ltd. Company on 2nd January and further converted into Public Ltd. Company w.e.f. 4.4.1992 vide order of Registrar of Companies Punjab Himachal Pradesh and Chandigarh dated 3.9.92. - The Company initially started solvent extraction with the capacity of 40 TPD. The project was financed by Punjab Financial Corporation. 1980 - The company further diversified its activities by installing refinery and oil mill from its own sources and capacity of solvent extraction plant was raised upto 100 TPD. 1990 - The Company further enhanced the capacity of solvent extraction from 100 TPD to 150 TPD by raising loan of Rs 80 lacs from PSIDC 1991- In August the company was sanctioned Rs. 120 lacs from PSIDC for installation of fresh solvent extraction plant of 200 TPD and the capacity of Hydrogenation plant was raised from 12 TPD to 25 TPD. - With the delicensing of Vanaspati Ghee in New Industrial Policy announced on 25/07/1991 the Company stopped manufacturing hard oil and the hydrogenation plant of the company was modified so as to facilitate the manufacturing of Vanaspati.

2000 - The Board has decided to issue further equity shares to the extent of 44 00 000 No. of equity shares of Rs 10 each at par on preferential basis to individuals promoters the relatives and associates of promoters corporate bodies or various persons including existing shareholders and other entities subject to necessary approvals.

3. Mittal Group of companies.

MAJOR DOMAINS At the mittals they have strong focus on the corporate values and work culture. Their workforce is committed to long term strategic partnerships that deliver value beyond the contract of their customers. They are setting up new standards in 3 specialist domains: Edible oil Distillery Real estate

At the Mittals they Honour and Celebrate outstanding performance of their group companies. 1. M/s Bhatinda Chemicals limited Bathinda 2. M/s Ganpati Townships limited Bathinda 3. M/s Kissan Fats limitedJalalabad 4. M/s Pioneer Industries limitedPathankot 5. M/s Sheesh Mahal Developers limited Bathinda 6. M/s Cosmos Infra Engineering ( India) limitedNew Delhi 7. M/s Gee City Builders Pvt. Limited Chandigarh 8. M/s Ansal Mittal Township Pvt. Limited New Delhi 9. M/s Svarna Infrastructure & Builders Pvt. Limited Kolkata 10. M/s Chavan Rishi Resorts Pvt. Limited New Delhi 11. M/s Creative Buildwell Pvt. Limited New Delhi 12. M/s Ganpati Estates Bhatinda 13. M/s R.K. Resorts Bhatinda

1. EDIBLE OIL

2. Distillery

3. Real estate

Residential

They have created high quality residential landmarks all over the country. From developing economical, low budget housing to erecting stunning masterpieces, the one thing that has always been Theirmotto is Quality. Buildings been erected by us stands the test of time even today. Since the very beginning They have always endeavored to be the best by using the best, never compromising on quality and strength Theirforesight has continuously added new dimensions to urban living in India. Commercial Being the builder of choice for India, They have always felt responsible to add to the community. Theirobsession to redefine the way people live is extended even to the business community, by redefining the way people work. They are amongst the first to develop Mumbais famous business district, Nariman Point, the Manhattan of Mumbai. Providing state of the art infrastructure coupled with amazing quality, Theircommercial sky rises form a legacy for corporate and are a matter of great pride for Theirclients and us.

4. . Hotels and resorts

The company is also a leader in hotel and resorts . It has its presence in Bhatinda , Gurgaon and Chandigarh.

5. Board Of Directors

Board Of Directors Director (Nominee of PSIDC) Chairman Director Managing Director Director A K Sood D D Mittal Rajan Sekhariya Rajinder Mittal Vinod Mittal

6. SOCIAL ACTIVITIES

A belief of spreading humanity with evolution is what They desire. Feeling the need to cultivate a better India, They have built and even sponsored few non charitable organizations. These organizations carry out a social responsibility of civilizing lives of people. These associations and charitable trust are:

The Mittal Group has always felt the need to cultivate, grow and help Indian society. They sponsor and run several non profit charitable organizations across the country. Schools

Walsingham House School (ICSE), Mumbai Colleges Kamaladevi Gauridutt Mittal Ayurvedic College, Mumbai Gauridutt Mittal High School & Junior College, Mumbai Kamaladevi Gauridutt Mittal College, Mumbai Kamaladevi Gauridutt Mittal Girls College, Rajasthan

Hospitals & Charities

Kamaladevi Gauridutt Mittal Ayurvedic Hospital, Mumbai Gauridutt Dhadharia (Mittal) Eye and Dental Hospital, Rajasthan Mittal Charities Bhagwati Charitable Trust

Every single project undertaken by us bears the Mittal Stamp of Quality. They not only make Their buildings that have great aesthetic appeal, They also take great pains to ensure they are safe

and sturdy. For instance, buildings in Their township project of Mittal Enclave in Naigaon (E) on the outskirts of Mumbai have foundations that go seven floors deep! All Their projects are certified by leading structural engineers, and the quality certification is done by certified institutes. They use the world-class building materials money and partner with the best minds in the business. For example, They use the services of architects such as the reputed Talati and Panthaky; the RCC consulting is done by Shailesh Mahimtura. Other Associates include Painterior and Likproof, reputed for their high standards.

Many of Their projects have been designed by Hafeez Contractor, who has acquired a reputation both in India and abroad for his superb and path-breaking quality of his work. The interiors too bear the unmistakable stamp of Mittal Quality. Elegant marble and granite flooring, ceramic tiles, powder-coated aluminium sliding windows are all standard in Their constructions. Not to mention concealed wiring and plumbing and top-class fittings. Their commercial constructions come with advanced fire-fighting and security systems, emergency power supply, fibre optic connectivity, the works.

Anyone who buys into a Mittal Project is guaranteed of a quality product that will last generations.

7. Their partners
Over the years Mittal Builders have worked with some of the leading names in the indian real estate industry. To name a few Contractors & Architects

Hafeez Contractor Talati & Panthaky Associated Pvt. Ltd. B.N.Shah & Associates Tecton Consultants Ajay Wade and Associates Laxman Thite & Associates, Pune

RCC Consultants & Waterproofing

Mahimtura Consultants Pvt. Ltd.

Likproof India Pvt. Ltd. Painterior Vora & Associates Rajesh Shah. & Associates

Banks & Institutions

HDFC HDFC Bank CITI Bank State Bank of India National Co-op Bank Dhanalaxmi Bank Laxmi Vilas Bank

8. Achievements
Third highest prouducer of refined rice bran oil for the year 2009-2010. Bhatinda Chemicals (Bhatinda) specializes in the development, manufacture and marketing of oil related food products. The company produces vegetable, mustard, sunflower, cotton seed, rice bran and soyabean oils. It also extracts acid oil and oxygen gas from mustard, sunflower, cotton seed and rice bran. It primarily operates in India. The company is headquartered in Bathinda, India. The company recorded revenues of INR2,136 million (approximately $49.2 million) during the fiscal year ended March 2009, an increase of 3% over 2008. The net profit was INR21.7 million (approximately $0.5 million) in fiscal year 2009, as compared to the net profit of INR4.39 million (approximately.$0.1.million)in.2008.

9. Bhatinda Chemicals Limited

Bathinda Chemicals Limited is situated on Hazi Ratan LinkRoad in Bathinda. This Unit was setup in 1978. Following items are manufactured in this unit :

Vanaspati Refinery Solvent Plant Expellers Rice Sheller

TheirProducts are made of following things: Cotton seeds, Kardi, Mahuwa, Maize (Corn), Niger seed, Palm, Palmolein, Imported Pareseed, Rice Bran, Salseed, Sesame, Soyabean, Watermelon seed, Sunflower, S.E. Mustard, S.E. Groundnut, S.E. Sesame.

10.
AMRIT BANASPATI CO. LTD

MAJOR OTHERS PLAYERS

Amrit Banaspati Co. Ltd a company that is synonymous with purity and goodness, is poised on the threshold of the new millennium today. In a country as diverse as India , nature has showered her best, in full measure. About the company :At Amrit Banaspati Company we have stayed close to our roots nature. Our special understanding of nature and her ways have enabled us to grow form a Vanaspati company to a multi product organization producing a whole range of edible oils and fats. Today ABC has an installed capacity of 10,000 metric tonnes per month as compared to a mere 3,000 metric tonnes per month in its first year of operations. This stupendous growth has been possible because ABC has continuously endeavored to bring new products to the Indian consumer and that end is R and D has played a key role. Further ABC has over the years introduced a range of refined oils namely, soyabean, groundnut, cottonseed, mustard and sunflower. With the objective of meeting the varied need of Indian consumer.

Besides ABC also produces bakery shortening and confectionery fats and oils among other products that meet your specific needs. Most importantly, all our products meet the stringent international standards. So much so that ABC brands are household names today and have been honored with the Monde Selection Medal of Brussels on several occasions. Amrit Banaspati has adopted three tire Distribution :PLANT , DISTRIBUTERS , RETAILERS , CONSUMERS All the products produced at ABC Rajpura are sold in the area of Punjab, Haryana, Rajasthan, J&K, Himachal Pradesh, West Bengal and Chandigarh through 130 depots and 575 stations. Number of dealers engaged in distribution of Amrit Banaspatis products are around 670. FORTUNE SOYABEAN OIL

Fortune Refined Soyabean Oil is light, odorless and healthy oil. Most importantly it contains OMG3 (Omega 3 fatty acids) an essential PUFA which needs to be supplemented from outside sources. Soyabean oil is the preferred oil of many a household across the world.

The Ruchi Soya Industries Limited

Ruchi Soya Industries Limited is an agro industry of Rs 3081.60 crores turnover Ruchi Group. It is the flagship company of one of the five companies of the group. The group has an impressive net worth of Rs 401 crores (Rs 4010 million) and assets worth Rs 682.75 crores.

The company was founded by industrial visionary late Shri Mahadeo Shahra and at present is

headed by his eldest son Shri Kailash Shahra, who is the Chairman of the Group. Shri Kailash Shahra has enhanced the vision by transforming countryside of Madhya Pradesh into Soya bowl of the nation.

Ruchi Soya Industries Limited (RSIL) is Flagship Company of Ruchi Group. It is most integrated Soya processor and first company in the country to export Soya meals, manufacture edible grade Soya flour and textured Soya proteins in India. Its brand `Nutrela' enjoys market leadership in the Soya product segment. RSIL is leading player in vegetable oils, Soya flour and vanaspati products. It commands large share of market. Three generation experience, integrated vision, entrepreneurship and industrial competitive spirit has not only expanded the reputed business but has led to diversification in closely associated ventures including foreign collaborations

11.
EDIBLE OIL MARKET IN INDIA

ABOUT THE PROJECT

India accounts for 9.3 percent of world oilseed production. It has the worlds fourth largest edible oil economy. Yet, about 43 percent of edible oil available in India is imported. In 1999 India ranked as the worlds largest importer of edible oils, displacing China. The bulk of edible oil India imports under the Open General License (OGL) are RBD Palmolein of Malaysian and Indonesian origin

India has approximately 300 crude edible oil refining units. 60-70 percent

of which are small.

Unlike the bigger refiners. The small ones are unable to import huge quantities of crude either due to their low capacity or lack of financial resources, and may be forced to close down or sell out to the bigger ones in the foreseeable future.

A major problem is the low capacity utilization. The installed capacity of oil mills is around 36 million tones annually, but capacity utilization is only 40 percent solvent extraction plants show only 33 per cent capacity utilization and vegetable oil refineries show 40 per cent.

The total import of edible oils during the period form November 1998 to October 1999 totaled 4.4 million tones valued at more than Rs. 9.000 crores. That was against a demand supply gap of 1.4 million tones in 1998-99. Imports have therefore deluged the market.

The import of relined palm oil was put under OGL (Open general License) in March 1994. Other edible oils were put under OGL in April 1995 (when an item is brought under OGL, it means that the item can be imported without seeking any approval).

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

On December 30, 1999 a differential duty structure was introduced. Duty on refined oil was fixed at 27.5 percent (25 percent plus 10 percent surcharge) while that on crude was retained at 16.5 percent (15 percent plus 10 percent surcharge) But only actual users (as opposed to traders) are allowed to avail of this reduced duty on crude oil. Traders are nevertheless allowed to import crude at the reduced duty but only to sell to actual users on a high seas basis. This requires that the actual users fills in the import documents (and pays the reduced duty) but leaves the importing process to the trader.

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

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

IMPORTANCE OF EDIBLE OILS IN THE COUNTRYS ECONOMY

Oilseeds and edible oils are two of the most sensitive essential commodities. India is one of the largest producers of oilseeds in the world and this sector occupies an important position in the agricultural economy and accounting for the estimated production of 29.14 million tonnes of

nine cultivated oilseeds during the year 2009-2010. India contributes about 10-11% of the world oilseeds production. Export of oil meals, oilseeds and minor oils has increased from 2.28, million tones in the financial years 2009-2010. In terms of value, realization has gone up from Rs.5653/crores to Rs.8447/- crores. India accounted for about 7.4% of world oil meal export.

Types of Oils commonly used in India. India is fortunate in having a wide range of oilseeds crops grown in its

Different agro climate zones. Groundnuts, mustard/rapeseed, sesame, safflower, linseed, Niger seed/ castor are the major traditionally oilseeds. Soya been and sunflower have also assumed importance in recent years. Coconut is most important amongst the plantation crops. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman and Nicobar Islands. Among the non-conventional oils, rice bran oil and cottonseed oil are the most important. In additional, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils. Figures pertaining to production of major cultivated oilseeds , availability of edible oils from all domestic sources and consumption of edible oils (from Domestic and Import sources) during the last few years are as under :-

In Lakh Tonne Oil year October) (Nov- Production oilseeds of Net availability of edible Consumption oils from all domestic edible sources oils of (from

domestic and import sources)

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

247.48 207.15 184.40 206.63 150.58 251.42 (4th

69.60 60.15 54.99 61.46 47.28 71.09 advance (Est.)

95.82 102.11 96.76 104.68 90.93 124.04 (Est.)

Estimates) 2009-2010 248.42 (2

nd

73.10 advance (Est.)

117.10 (Est.)

estimates)

Source

(i) (ii)

Production of oilseeds, Ministry of Agriculture as Declared on 19-01-2009. Net availability of edible oils, Directorate of Vanaspati, Vegetable.

CONSUMPTION PATTERN OF EDIBLE OIL IN INDIA.

India is vast country and inhabitants of several of its regions have developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard/rapeseed oil. Likewise, several pockets in the South have a preference for coconut and sesame oil. Inhabitants of northern plain are basically hard fat consumers and therefore, prefer Vanaspati a term used to denote a partially hydrogenated edible oil mixture. Vanaspati has an important role in our edible oil economy. Its production is about 1.2 to 1.4 million tonnes annually. It has around 10% share of the edible of the market. It has the ability to absorb a heterogeneous variety of oils, which do not generally find direct marketing opportunities because of consumers preference for traditional oil such as groundnut oil, mustard oil , sesame oil etc. For example newer oils like soyabean, ricebran and cottonseed and oils from oilseeds of tree and forest origin have found their ray to the edible pool largely through vanaspati route. Of late, things have changed. Through technological means such as refining, bleaching and de-odouraisation, all oils have been rendered practically colorless. Odorless and tasteless, and therefore, have become easily interchangeable in the kitchen. Newer oils, which were not known before they have entered the kitchen, like those of

cottonseed, sunflower, palm, oils or its liquid fraction (palmolein) soya bean and rice bran. About 60-70% predominately groundnut and mustard seeds are used to make non-refined or filtered oils. This tends to have a strong and distinctive test preferred by most traditional customers. The share of raw oils refined oils and vanaspati in the total edible oil market is estimated at 42%, 48%and 10% respectively.

DEMAND FOR EDIBLE OILS RISES IN INDIA:-

Indian food industry continues to show a strong commitment to oils imports following drop in domestic demand, says industry body.

Fresh figures from the Solvent Extractors Association of India (SEAI) revel that edible oils imports increased by some 21 percent for the first six months to April 2010.

Imports jumped to 2.2 million tonnes in the first half of 2009-2010 up from 1.82 million tonnes for the same period last year.

Imports are expected to be much higher this year because of a drop in domestic oilseeds production, said B.V. Mehta, executive director of

SEIA adding that India was likely to import about 500,000 tonnes per month this year.

Purchases of edible oils by India are expected to reach around 5 million tonnes this year from 4.4 million tonnes in 2008-2009 Mehta added reports the American Soybean Association.

Soya oil in particular saw strong growth. Imports of crude soy oil leapt to 735.352 tones in the November 2009 to April 2010 period up from 236.990 tonnes in a year earlier. Crude palm oil purchases rose 10.8 percent to 1.01 million tonnes from 911,520 tonnes.

Indias oilseed output for 2010 is estimated to be around 21.8 million tonnes, a fall of 6.4 percent from 23.3 million tonnes last year.

The processed food market is enjoying decent growth in India, pushing up demand for oils. The Indian branded food and drinks market grew last year by over 5 percent, according to recent figures from ACNielsen, outpacing the global the global average growth rate 4 percent.

Supporting this buoyant overall trend, growth rates for individual product categories within the Indian market too, reflect aggressive performance within the similar period.

SOYA OIL

The source: Soya was developed in China even before the time of written records. The name of the Soya bean comes from sou meaning big bean and is one of the five holy plants of the Chinese people 5000 year ago. The Emperor himself planted Soya every year in a ritual ceremony.

Nowadays, as a member of the legume family, it has an important position in ecological agriculture. Legumes supply the soil with nitrogen and are therefore highly suitable for use in the rotation of crops. In addition to its agricultural value, the soyabean also supplies especially healthy oil, which is making more and more friends.

The plant itself is a short bushy plant 20-180 cms in height. It is grown in normally cultivated fields in rows.

Recently, there has been a massive boom in the production of genetically engineered soya bean, which can resist certain herbicides. Vast areas of north and South America have been planted with these GM Soya plants. The soya used in the production of our oil is exclusively from organic

farmers in France who belong to a cooperative near Albi. The cultivation association pay very conscientious attention to ensure that No GM soya seed is used to the extent that they produce their own organic seed.

Processing:Soya is a basic component of the diet in Asian countries and forms the basis of tofu. Soya oil first cold pressing has a full aroma, which deliciously emphasizes the natural flavor of your salads and raw dishes. Industrially refined soya bean oil is product which one should regard with particular skepticism; with regard to flavor and nutritional significance industrially refined soya bean oil has simply nothing to offer. When our soya bean oils is pressed, the whole oil mill is filled with a magnificent aroma of fresh beans. The processor has to press some 10 killos of soya bean in order to extract one simple litre of oils.

Cooking:It is not really advisable to beat cold pressed soya bean oil. Our soya bean oils have a delicate bean like flavor. It is thus ideally suited to enhance salads of hearty noodle, potatoes and beans. If you find the soya flavor to dominant, simply mix it with a little safflower oils.

Health:Soya bean oil possesses more than lecithin than any other oil. It is thus a real power food for the bran and nervous system. Stress bound managers and all mothers with small children should always keep a small store of cold pressed soya bean oil at hand:100g of cold pressed soya bean oil contain 31.7 mg of vitamin E. 13.7% saturated fatty acids. 25.3% monounsaturated fatty acids. 60.8% polyunsaturated fatty acids, of which 6.5% linolenic acid.

12.

RETAILERS AND CUSTOMERS

WHAT RETAILERS HAVE TO SAY

1)

Low margin: - Most of the retailers complained that they get very low margin in all the products of ABCL as compared to its competitors thats why unable to sell the local brand .

2)

Leakage problem: -The retailers also complained about the leakage problem faced by them in the cartoons of Ginni and no replacement, but other companies are giving them full replacement of leakage packages.

3)

Feed back problem: - The retailers also complained that they get very less feed back from the company, like whenever any scheme is introduced by the company, they are not even made aware of the scheme.

4)

Quality problem: - The retailers also said that sometimes the quality of soya oil is low they have face problems regarding their image

5)

MRP Problem :- Retailers also complained that in the days of rising prices, sometimes it happens that MRP of ginni products is less than the price at which they have purchased it from the distributor.

6)

PROBLEMS related to new products :- they complained that sometimes they are even unaware of companies new products

WHAT CUSTOMERS HAVE TO SAY

1)

MRP problem :- customers complaint that sometimes they have to pay more price then the MRP

2)

Leakage problem:- customers even told that sometimes they have to face leakage problems

3)

PROBLEMS related to new schemes : customers complaint that even sometimes retailers dont even tell about new schemes

4)

DISCOUNT schemes:- customers complaint that there are very less discount schemes on soya oil as compared to other refined oil

13.

RECOMMENDED MARKETING STRATEGY

The market strategy of the firm is a complete and unbeatable plan or an instrument designed specially for attaining the marketing objective of company. The formulation of the marketing strategy consists of two steps :1. Segmentation & target market selection. 2. Assembling the marketing mix.

Market Segmentation And Target Market Selection Market segmentation and target market selection have an intimate relationship with market strategy formulation. The company may focus on the following factors while laying down the target market.

1. Geographic Segmentation Geographically the country can be broadly divided into 3 sub segments -Rural, Suburban and Urban. In the first phase(after the test launch), Urban parts of the country should be targeted. The chosen segment is targeted because Lack of infrastructure. The consumption pattern & behavior in Rural India does not fit with the product attributes and perceived benefits. The limitation of disposable income is another factor that hampers entry in Rural areas. Semi-Urban may be considered in the second phase. An year after the launch.

Within Urban India, the cities with 1 million + population i.e. top 23 metros will be targeted. A soft launch of the brand should be undertaken before taking the brand to these areas. This (test launch) will be undertaken in Bombay, since it (Bombay) is a high consumption city.

2. Demographic Segmentation The demographic variables have been separately addressed to arrive at the target audience. Age: 30-40 years + segment of the population is recommended to be targeted. Family Life Cycle : In terms of family life cycle it is addressed at all of the following : 1. Old people who are suffering from heart diseases. 2. Married people who are health conscious. The brand may positioned such that it fits all stages of family life cycle. Income : The income segmentation may be all households with an annual income exceeding Rs. one lakh. Targeted audience may be all households that can afford a television or have access to satellite television. 3. Psychographic Segmentation Social Class : In terms of psychography the social class targeted is the educated upwardly mobile urban middle and upper class. . Life Style : In terms of lifestyle, it may be aimed at those who favor buying convenience products. They are also willing to experiment with alternate products in place of conventional food items. 4. Behavioural Segmentation The moulded segment of the market is perceived to be the growth engine of the market. Hence, this segment is quite lucrative for a new brand launch. This segment comprises of people who like to have chances and want to try new things. 5. Usage Rate The market may be further segmented on usage rather than attitude.

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

SUGGESTIVE MARKETING MIX The objective of the marketing mix developed is: To develop a product that is available, affordable, based on local raw material, and adapted to the taste and the nutritional habits of the population. The elements of the mix - Product, Price, Place & Promotion have been entailed below : Product The two most important segments of the market are Moulded and Countline segment(segments have a high share of the market). Also, it can be seen in the findings, the Indian consumer does not recognise the difference between Moulded and Countline segment. Further, a key decision that needs to be taken is to decide whether to have a core brand focus or have a plethora of brands. Here, it would be advisable to launch a complete basket of products covering both the countline and the Moulded chocolate segment (at least if not Panned). A range of brands can help cushion out risks over the entire offering. Also, it has been that to sustain in the long term, a complete portfolio of chocolates for every taste is essential. However, a concentration strategy may be adopted in the first phase, focusing on one core flagship brand. The various product attributes have been mentioned below : Stipulations regarding the use of Hydrogenated Vegetable Oil-HVO (since it contains nickel) may be adhered to. Nickel in chocolates can cause cancer. However, research is still on to prove this. Product formulation should keep this aspect in mind. Packaging : The packages or the cover packs, of the brands can be in Blue, Green and Red color which represents a fun element so that the customers dont even realize that they are taking oil due to Drs recommendation. The packaging should keep the product fresh and protected from the harsh climatic conditions in the country, and hence provide a longer shelf life. Sizes : As can be seen in the findings the most popular size is litres should be used. . Shelf Life:-The product should also have a high shelf life with a good shelf appeal as well.. Product Differentiation

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

Pricing Factors like competition, internal costs, the poistioning and corporate objective of the company need to be taken into consideration by a company before pricing a product. Premium pricing (relative to the competing brands), with special emphasis on taste and quality (most important attributes-see findings) is recommended. The premium pricing does not suggest that the offering is made unaffordable to the target consumer. A high price would not accompany a promise for a better taste and quality. Further, the product category is relatively inelastic i.e. consumers would not stop buying their favourite brands if the price is increased by a few rupees (see findings). Consumers feel that even if the price of their favourite brand is reduced, they might not buy more of it.

Placement The success of any FMCG product thrives on distribution. Factors like financial cost

effectiveness) perishability of the product, repeat orders; managerial capacity and unit value of the product need to be carefully analysed while setting up the distribution framework of the company. The product category is essentially a pull market. However, the channel members provide greater visibility to the product. Recommended Distribution Logistics The first task in hand should be, to effectively map the territory into smaller more accessible and controllable units. An effective territory mapping needs to be done not only to provide an efficient coverage of the market but also to provide growth opportunities to the constituents (stockists), as the company grows. The recommended distribution chain would be as follows:

Carrying & Forwarding Agents: These may be appointed at two or more State(s) of operation of the company. Carrying & Forwarding agents work on a commission basis 3% (industry norms) of the goods handled. It is recommended that the country keeps about 4 to 6 weeks of inventory at the C&F level and a commission structure which is in keeping with the industry norm. Therefore a 3 percent commission on the invoice value may be provided to the agents. Stockists : A stockist provides a local delivery point for the manufacturer/marketer. They store the products, break bulk, and distribute to the retailers. With greater no. of retailers now seeking credit from the retailer, efficient management of collection has become a vital part of the stockists job. The main problems that new product faces is that of getting experienced and effective channel members. As existing marketing marketer/manufacturer can piggy back on the existing channel structure. A new company will have to provide greater incentives convince channel members to stock the product offering. Hence, an innovative means of channel handling needs to be adopted: Competitive commission to the stockists-around 5.66% on the invoice (industry standards 5.66%) The efforts of the sale representatives employed by the stockists to get orders may be supplemented by the manufacturers sales force. Retail outlets to be serviced at least four times in a month (atleast once a week) Distributors (stockists) to maintain stock of not more than 15 to 20 days Since, distributors are to maintain airconditioned godowns, in summers the A/C expenses may be borne by the Co.

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

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

The first stumbling block for a new brand/product is, to convince the retailers to stock the offering. Retailers want smaller quantities at shorter intervals. Hence, retailers may be convinced by offering smaller quantity options to them. Also, retail margins provided may be higher than the industry than the industry standards (industry standards range from 8.5% to 9.5% of the MRP). The margins offered can be around 9.75% of the MRP. Promotion This involves communicating persuasively to the consumers, in order to arouse their interest in the product. A detailed promotion plan involving advertisement, sales promotion and public relations is proposed. . Advertisement Plan The Advertisement plan could be as under: Corporate objective: The corporate image should be built over a period of time, so as to reinforce consumer confidence in the brands of the company. This is also essential to counter competition, since over a period of time, names such as fortune , nature fresh and soyumm have attained high levels of recognition and assurance. Advertisement Objectives To position the product as a high quality brand, with a wide range of offering, providing, fun anytime, anyplace products.

To create awareness about new arrivals of soya oil. Induce consumer trials. Build corporate image To undertake competitive advertisement.

Message: The message design will be consist of following; Appeal: it should be appealing one Presentation: should be well presentable Message Source: For print media the message source will be the copy part and creative advertisement design. For electronic media, the source will be whole family unit, younger enjoying the food. Media Print Media: Will be the major magazines read by the target segment i.e.., India today, society, femina, stardust etc.. Electronic Media: Since the whole of target segment watch Satellite TV during prime time and advertisement will be featuring share for 3 or more time to leave an impact. Public Relations: I. The company will hold a press conference announcing its arrival in India and will highlight its global achievements. II. Company has plan to sponsor events like 2 viz., skiing river rafting, yachting etc. III. Company will also sponsor fun based TV programs. Sales promotion Activities: To induce consumers to try the new product and to get the product pushed in the market the sales promotion plan should include the following : Trade promotion: The Company will have to offer lucrative trade promotion schemes, in order to push primary sale. These include incentives to stockists for pushing the sale of oil. At the retail level, the following trade promotion measures may be adopted: Schemes such as , a certain percent off on the purchase of Rs 5000 or Rs 10,000 worth of oil. A 15 ltr tin free with every Rs50,000 purchase. Shop Displays

Apart from these, WindowShelf space may be purchased outright. Consumer Promotion: Some of the consumer offers that could be introduced are : 1. Free gifts like pen, soaps etc., on return of oils wrapper 2. Money Savers 3. The Company can announce consumer contests (with proof of purchase) with attractive prizes, supplemented by an advertisement campaign. . MARKET TESTING PLAN

The company should test the product before it goes national (23 metros with million + population). This is so because: 1. It would reduce the risk of failure in the market where it goes national, by validating the marketing mix. 2. Facilitate validation of positioning. 3. Allow corrective action through incorporation of consumer feedback. For test marketing the SOYA OIL, the plan may be as follows: 1. Test Objectives: To validate the brand names, new outlets, etc and to measure the sales volume, pricing and promotion policy. Competitor reaction can also be analysed. 2. The product may be launched in Bombay ( as a soft(test) launch). This selection was based on : Bombay is uniformally represented by the target segment

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

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

The success of the brand would largely depend on the following: Sales Distribution Network Quality standards Research and Development-continuous innovative products Technology support

Before the launch the following should be ensured: 1. Product literature to the sales department to be provided & Training to sales staff 2. Feedback of sales staff regarding product competition 3. Feedback of other departments like sales forecast to the production department, R&D for product modification. Finally, in order to ensure long term success of the product Company should have a personnel department., which will handle employers related problems. Company should set up an operational department which will be for helping the distributors and the retailers. The marketing team must maintain a Management Information System consisting of *Sales reports * Consumer feedback * product

14.

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY Research would be carried out based on these objectives. 1) 2) 3) To find out customer preferences towards different brands of soyabean oil Market share of each brand towards total market share of soyabean oil What is the margin retailers are getting from various brands & what are the brands they want to sell

4) 5)

What problems are they facing related to new or various products To get the feedback from retailers & customers as well so as to help company in devising marketing strategy.

SCOPE & LIMITATIONS OF THE STUDY The scope of the study and survey is limited to bathinda region only. It is a hard fact that each study suffer from some limitations. So is the case with this study. One of the limitations of the study is, as the information is collected from the retailers, the monthly sales figure given by them is based entirely on their own judgment. So a few of them might have given the wrong figures related to their monthly sales. Another limitation was that some of the retailers were busy and could not give appropriate information. And also very few retailers did not want to share any information.

Another limitation of the study was the customers who were personally interviewed did not want to share the actual data as few of them were giving fake data

The sample size being very small , that is , only 150respondents, limited the scope of RESARCH Time constraints put boundaries to sample area and hence limited the extent of the study Taking convenience sampling might have led to some bias as people with different age groups have different perceptions

RESEARCH METHODOLOGY A research design is the arrangement of condition for collection and analysis of data in a manner that to, combine relevance to research purpose with economy in procedure. Research Design :- is conceptual structure within which research is conducted. It constitutes the blue print of collection, measurement and analysis of data .Research Design is needed because it facilitates the smooth sailing of various research operations, thereby making research as efficient as possible yielding maximum information with minimum time, effort and money. Research Design stands for

advance planning of methods to be used for collecting relevant data and techniques to be used in the analysis .The design helps researcher to organize his ideas whereby it will be possible for him to look for flaws and inadequacies. Method of data collection: - for collecting data and the accuracy of facts, complete enumeration was used. for collecting the data a sample of retailers & consumers were drawn

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

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

Sources of primary and secondary data : The major aim of the project was to analyze the competition in occupying market shares of various soyabean oil brands. Therefore I had to get considerable information about the competing brands. For this I had to go through a lot of secondary data.

15.

Analysis of Retailer Responses

1. which brands of soyabean oil are available in the shop?

Fortune Nature fresh Soyumn Ginni Home Cook

40 25 32 10 20

Various Soyabean Brands Available

Fortune Nature fresh Soyumn Ginni Home Cook

16% 31% 8%

25% 20%

Out of 50 retailer respondents few retailers were only stuck to one soyabean brand and maximum out of them were having or were dealing in almost all the brands

2. which soyabean oil has maximun sale per month? Fortune Nature fresh Ginni Home cook Soyumm 32 5 1 9 6

Soyabean oil with maximum sale

Soyumm 11% Home cook 17% Ginni 2% Nature fresh 10% Fortune 60%

Out of the 50 retailers 60% were of the view that fortune is the market leader. After that Home cook is on the second position.

3. which soyabean oil has maximum sale in different quantity packs?

I ltr 30

5ltr 12

15ltr 8

Packing with maximum sale

15ltr 16%

5ltr 24%

I ltr 60%

As shown in the diagram 1ltr packing is the most saleable and it holds 60% share of the total.

4. Rank of the followings attributes in soyabean oil between 1-5 according to customer importance ( 5 being maximum)

GRADING Taste Quality Packaging Brand image Price

1 3 3 6 7 1

2 16 18 16 21 2

3 23 20 18 8 1

4 3 5 5 8 6

5 5 4 5 6 40

Out of the various attributes shown above PRICE is one of the most important factor that influences buying decisions of various customers .

5. what influences customers to buy the brand? Advertising 4

Attractive packaging Retailer Shop display Pricing Discount Health conscious

5 4 7 28 30 40

Advertising, 4

Attractiv Retailer, 4 e packagin g, 5 Shop display, 7

Health conscious, 40

Pricing, 28

Discount, 30

Most of the customers consume soyabean oil because either they are suffering from any heart disease or are health conscious and the ratio covered is 80%.

6. what are customer's feedback regarding soyabean oil? Customers are not satisfied with the discounts or the great offers they are getting , sometimes they have to pay more than the MRP , they consume soyabean oil just they are going health conscious , moreover they are receiving certain complaints regarding the tetra packing because of leakage. 7. Are you satisfied with incentives from the oil company? Yes 38

No

12

satisfied
No 24%

Yes 76%

Many of the retailers said that they are satisfied with the incentives they are getting, 76%retailers are satisfied.

8. Are you satisfied with the services of the brand you are selling? Yes No 30 20

satisfied
No 40% Yes 60%

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

9. If no then what are the suggestions you will give to the company? Transportation Scheme Margin Credit
Credit 4%

13 16 19 2

Transportatio n 26%

Margin 38% Scheme 32%

32% of the retailers want to give suggestions that company should provide retailers some schemes which would help retailers to boost company sales.

10. Any suggestions to the company?

They want that their margin should be increased each and every rather than they go on a fixed margin ,even they want that certain perks or some schemes should be given to retailers also.

16.

ANALYSIS OF CUSTOMER RESPONSES

1. Do you use soyabean oil? Yes No 62 38

Consumption of soyabean oil

No 38% Yes 62%

Customers respondents agreed that they use soyabean oil and out of 100 respondents 62%agreed. 2. If yes (check) the brand you use? Fortune Nature fresh Soyumm Ginni Home cook
Ginni 3%

25 12 8 2 15

Home cook 13% Fortune 40%

Soyumm 24%

Nature fresh 20%

In consumption as well as preferable brands FORTUNE leads with 41% and home cook is with 13 % only. 3. Rank the following attributes according to their importance to you? (5 being maximum) GRADING Taste 1 6 2 19 3 25 4 5 5 7

Quality Packaging Brand image Price

5 9 7 2

17 19 21 4

27 23 4 7

6 6 13 9

7 5 7 40

Out of the various attributes shown above PRICE is one of the most important factor that influences buying decisions of various customers.

4. What influenced you to buy the above stated brand(s)? Advertisement Attractive Packaging Retailer Shop display Pricing Health conscious 3 4 12 5 21 17

Advertiseme nt 5% Health conscious 27%

Attractive Packaging 7%

Retailer 19%

Pricing 34%

Shop display 8%

PRICING is again the leading factor followed by the customers who consume just because they are health conscious.

5. If particular brand is not available with retailer the you will. . . . .? drop the idea of buying it go to another retail outlet try another brand 2 37 23

If particular brand is not available

drop the idea of buying it try another brand 3% 37% 60% go to another retail outlet

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

6. What according to you a suitable price for 1 ltr which is of good quality? below Rs 30 between 30 and 40 between 40 and 50 more than 50 6 9 39 8

Price for 1 ltr

below Rs 30 between 30 and 40 between 40 and 50 more than 50

13% 10% 14%

63%

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

7. If your brand is few Rs expensive than it, then will you go for it?

Yes No

39 23

No 37% Yes 63%

Customers are ready to pay even high price because they are satisfied with what they buy.

8. A sale promotion scheme like rs 10 off , 250 gms extra or a product free, whould it affect you purchase decision?

YES NO

47 15

NO 24%

YES 76%

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

9. what size of packaging do you normally buy?

1ltr 5ltr 15ltr

37 12 13

Packaging bought normally

15ltr 21%

5ltr 19%

1ltr 60%

1LTR packaging is mostly sold in the market. 10. Are you happy with the kind of soyabean oil brands available in india, today? YES NO 37 25

NO 40% YES 60%

Majority of the customers are satisfied with the brands that are available in India. 11. If no then why not? All the customers have given their suggestions as well as complaints which are shown later.

17.

SUGGESTIONS OF THE RETAILERS & CUSTOMERS

1)

Leakage problem should be looked after and the replacement of the leaked packets should be given to them.

2)

The company should reduce the cost of their products and the margin of the retailers should be increased.

3)

There should be proper channel of information, whenever any scheme is introduced by the company for the retailers, they should be properly informed about the scheme.

4)

In the same way, whenever any scheme is introduced for the consumer there should be atleast a print advertisement if T.V. advertisement is not possible.

5)

Other incentives should also be given to the retailers like glow sign boards etc.

18.

CONCLUSIONS & RECOMMENDATIONS

1)

Bathinda chemical should concentrate more on advertisements to make a good presence and market for their product.

2)

Bathinda chemical should also take into consideration the above given recommendations by the Retailers and Customers to make a good relation with them,

3)

Leakage problem should be taken care of and the retailers should fully compensated for their loss due to leakage.

4)

There should be proper feedback for the retailers AS WELL AS customers whenever any scheme is introduced for the retailers & customers they should be made aware of

it. Sales representatives should be given guidelines to intimate each and every retailer of his area about the schemes. 5) Regarding the introduction of new products, the company should go for aggressive marketing. There is a lot of potential in Soya Refined oil segment, but retailers are not even aware of our product. 6) Whenever any consumer oriented scheme is introduced, the scheme should be directly targeted to that person who actually uses i.e., house wives. 7) Non monetary incentives should be also given to the retailers in each and every city. They should be given glow sign boards and other sales promotional materials. This will boost up their spirits.

MRP problem during the days of rising prices should be taken care. In this situation if retailers are getting the products on a price higher than the MRP they cant sell it more than the MRP. So this problem should be looked after carefully.

19.

BIBLIOGRAPHY

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of India). Business today GREEN AND TULL , Marketing Research

Websites http://www.mittalgroup.co.in/thegroup.htm http://en.wikipedia.org/wiki/Marketing http://www.mittalgroup.co.in/industry-main.htm