Brand Dossier-Sundrop Oil

2012

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SUNDROP OIL

BRAND DOSSIER

Presented By:

Aneesh S Srivastav - B12008Lakshman Singh - B12021Sadaf Ahmed - B12039Ujwal Prasad - B12055

PHASE I

Early history of the brand and its evolution over time. Initial positioning and subsequent repositioning, if any. Advertising, sales promotion and segmentation strategy followed

by the brand. Analysis of product and generic competition to the brand. Strategies adopted over time by the brand to tackle competition or

prime market expansion. Distribution strategy followed by the brand. Summary regarding the future directions for the brand. Bibliography

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EARLY HISTORY OF THE BRAND AND ITS EVOLUTION OVER TIME

EARLY HISTORY

Agro Tech Foods Ltd Company was incorporated on 21st November 1986, and the Certificate of Commencement of Business was obtained on 9th January. It was promoted by C.N. Balu. The Company established a modern continuous process edible oil refinery with an installed capacity of 100 tons per day at Mantralayam, Kurnool District, Andhra Pradesh. Agro Tech Foods Ltd (ATFL) which is a public limited company engaged in the business of marketing food and food ingredients to consumers and institutional customers.

Sundrop was launched in the year 1989 as sunflower oil, in a predominantly groundnut and mustard oil market. Sundrop is the brand of Agro Tech Foods Ltd (ATFL). The company decided to go for sunflower oil because it was perceived to be Healthy Oil. Oil was named Sundrop as Sundrop associated with goodness or purity. Sundrop was launched in right time when the edible oil market was growing rapidly, with demand far exceeding supply, making India a net importer of oils and oilseeds. To expand Sundrop, Agro Tech Foods Ltd Company entered into an agreement with ITC Ltd. for providing technical and marketing consultancy services to the Company. Because ITC had the requisite agri-based skills and enjoyed the trust of farmers due to its long standing relationship with the community through its Leaf Tobacco Division.

Sundrop expanded the Sunflower segment from 2.71% to 23% within 6 months of its launch and to 42% by 1997 and became the largest selling sunflower oil in the branded retail segment and it is still the largest selling sunflower oil brand holds 15% of branded oil market. The Ad film launched in 1988 successful even after 10 years of its launch and considered to be one of the major factors in the success of the brand. After successful launch the purpose of Sundrop brand was:-

To achieve volume

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Set up the strong distribution network, and Build a dealer franchise and equity with the customer

In the year 1992 Sundrop product range of edible oils marketed through ITC Ltd and year 1995 company suffered loss, due to the poor capacity utilization at the Mantralayam complex because of the inadequate availability of raw material. However, Sundrop continues to be the largest selling sunflower oil in the branded retail segment. Year 1996 ITC Agro has launched Sundrop Canola a 94% saturated fat-free cooking oil under its Sundrop Brand. Board approves the ITC Agro-Tech and ConAgra tie-up and cleared the decks for the US partner to formally take charge of the edible oil businesses. ITC Agro-Tech's performance in 1997-98 was hampered by lower seed availability leading to under utilization of its capacity. Due to which the shareholders of ITC Agro-Tech have unanimously approved the change of company name to Agro Tech Foods Limited.

The Sundrop brand stands on the following four pillars, which have been built over the years through its strong differentiated positioning, “The healthy oil for healthy people”, a high recall value, consistency in quality and supplies

Health Taste Lightness Vitality

Sundrop is the largest brand in the premium segment of the refined oil consumer packs. From being one of the first players in the sunflower market, to one of the largest selling refined edible oil brands, Sundrop has come a long way.

EVOLUTION OVER TIME

Sundrop broaden its availability in different variants in order to meet the varied needs of the consumer and begun offering a range of products that brings out the true taste of good food while making it light and easy to digest. All Sundrop products are low in saturated fats. Sundrop is rich in natural vitamin and provides 100% purity.

The Sundrop portfolio has been expanding with new variants to meet consumer needs.

Sundrop Superlite - Sundrop Superlite is a 100% Sunflower oil. Sundrop Nutrilite - Launched in 2001 as a blend of Soyabeen and Sunflower oils, and was re-

introduced in 2004 as 100% Soyabeen oil. Sundrop Heart - Launched in 2003 in the fast growing heart care category. Sundrop Goldlite - Sundrop Goldlite was launched in 2009 in the fast growing blends category Sundrop Slimlite - Cooking spray oil which helps you to stay slim and healthy.

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INITIAL POSITIONING AND SUBSEQUENT REPOSITIONING

INITIAL POSITIONING

In mid 1980's when most of the oil brands were positioned on taste and offered little or no health benefits. They all talked about taste. The new oils like safflower and sunflower were seen as healthy and all brands in this category were anchored around health in terms of reducing cholesterol, light and easy to digest. The advertising for competitive brands was examined to evaluate and identify a positioning platform for the brand.

Sundrop had three options to choose from:

Taste Price, and Health

Since most of the brands were positioned on taste. Hence, Sundrop ruled out Taste option as it was not unique that time. However, since taste was a critical factor in brand choice, it was felt that it should be used as a supporting claim. Despite Sundrop being cheaper than refined groundnut oil, price was not seen as a tenable long term benefit as all other refined sunflower oils would be priced similarly. Research had indicated the growing awareness and concern for health and appreciation of oils, that had health offers.

Off all the three options, the health platform seemed to be the most enduring and effective. Hence, Sundrop initial positioning is on health. For instance, Saffola also considered health factor as strength in initial positioning. However, Saffola strength turned out to be a weakness as it had a very limited appeal outside its user base and led to negative perception regarding its taste. Because Saffola could not advertise properly with the reduces cholesterol story involving testimonials from doctors. It had been able to create a strong franchise among consumers having heart, blood pressure and other health problems. This led to Saffola being used for the patient and another oil brand for the rest of

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family. Health factor was more universal than the narrow confines as defined by Saffola. Research indicated that health.

Could also mean maintenance of good health Was applicable to all members of the family, and Was characterized by lively energetic people

Sundrop oil was supported by the increasing number of people involved in healthy activities like workouts, jogging etc. furthermore, there was a large segment of people who did not have any health problems, but in view of the fast pace of life, were concerned about the long term prospects of their health.

Based on this, Sundrop was positioned as the "Healthy Oil for Healthy People". Which to date serves as the sign-off line for all its advertising.

SUBSEQUENT REPOSITIONING

Sundrop initial positioning was on health and focused only on sunflower oil. However, in the year 2001 Sundrop launched Nutrilite which was blend of Soyabeen. Recently in the year 2011 Sundrop launched Slimlite a cooking spray for next generation way of cooking food which helps stay slim and healthy. So Sundrop, came up with cooking spray and focused on stay slim concept. Also, Sundrop came up with Omega - 3 and Omega - 6, essential fatty acids that are known to boost the immune system of the body.

However, Sundrop tag line/slogan on all the advertisement which is "Healthy Oil for Healthy People" remained same.

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ADVERTISING, SALES PROMOTION & SEGMENTATION STRATEGY FOLLOWED BY THE BRAND

ADVERTISING

The 5 Ms of advertising with respect to the Sundrop Campaign are:

1) MISSION:

Sales goals: Leadership in the edible refined oil segment

Advertising Goals:

Position Sundrop as the healthy oil for healthy people. Ensure that this did not erode the delivery of the taste benefit. Positioning had to be perceptually as far away from competitors. Young, modern and premium feel. Execution had to be distinct and original to stand out from the clutter.

2) MONEY:

Stage in PLC: Introductory, therefore relatively large expenditure Market share: new product Competitors: Saffola (Safflower oil) also used the health platform but was associated with heart

patients and less taste Flora and Sunola (Sunflower oils)

3) MESSAGE:

Health was chosen as the platform, along with a supporting claim for taste. People who were healthy and energetic were concerned about the long-term prospects of their health. Thus ‘Health’

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Was related to maintenance of good health Was applicable to all members of the family Was characterized by lively energetic people Thus the message and (positioning): ‘The Healthy Oil for Healthy People’

4) MEDIA:

Primary media: Television ad 30 seconds. Print ads

5) MEASUREMENT:

Within 6 months, Sundrop became the largest selling refined sunflower oil. Redefined the category and expanded the Sunflower oil segment from 2.71% to 23% in 6

months, and 42% in 1997 Still the largest selling sunflower oil brand holds 15% of branded oil market. The ad was shown for over 10 years.

SALES PROMOTION

Sundrop oils in its early days showed a boy doing gymnastics on its label which is till date one of the symbols from which the oil is identified. But the most important thing it did wrong that time was that its packaging did not depicted what the product was saying. In its sales promotion strategy in those years it distributed free samples throughout the major markets where they thought their product will have demand. But people became more aware of the brand when they started seeing what the brand really wanted to convey and i.e. it does not compromises with taste or health. Hence, Sundrop heart came in a yellow pack with heart made on it so that the customers can directly identify what the product is all about. It then started distributing free samples to the people in urban areas where the risk of a heart problem was prominent. Thus making a statement that they only make products concerning to the health of their customers and fulfilling the individual needs for an oil.

They also did a research in which they asked people to eat their oil and see if their cholesterol level falls down and when the people found the results to be positive they spread the word across that the oil was useful. This research was in fact shown later in the TV commercials of the product. According to the distributors point of view they gave a huge discount margin to them so that they can promote sell their products efficiently. At later stage they made it sure that they reach in every retail outlet of this country with all its products so that they become more visible to everyone. They also sponsored local cookery shows and competitions and distributed free sample to their main customers and that were the local housewives who actively participated in these shows and thus generating a base and a brand image in their minds.

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SEGMENTATION

Sundrop oil has always followed a purpose of "Nourishing families… Enriching life". Keeping this purpose in mind Sundrop decided to target that part of the market where people can eat food without having second thoughts about the oil they are consuming in their food intake. So the main segment of the market that consumed Sundrop oil would be the health conscious people who are inclined towards eating oils which have health benefits without compromising with the taste and quality of the product. But there are many factors on which we can say that Sundrop segments its products and then targets its customers somehow. Some of these factors are as follows:

GEOGRAPHIC SEGMENTATION

Sundrop oil segments its products according to the needs of customers both country wise and region wise. It targeted the urban area(metro cities) where there was larger market for health conscious people and thus a variety of products were launched according to the basic two requirements:

Need satisfaction Health consciousness

So there were variety of products that were launched to meet different needs of this specific market . Some products and their target customers are as follows:

SUNDROP HEART:

Heart Disease poses a major health problem in our country. This product thus, targeted mainly the working class people between the age group of 26-60 because they are the people who are more exposed to the risk of a heart problem due to the high cholesterol level in their body. This product thus became the right choice for the housewives and the people who have the fear of a heart problem or are suffering with one. This oil was mainly popular within the urban areas and found less prominence in the rural areas.

SUNDROP SUPERLITE:

Superlite targeted people of all age groups from a 10 year boy to a 65 year senior citizen because it contained various vitamins and was light and easy to digest. In addition to that it also helped in increasing the vitality of the body. Thus this product became the choice of common people as it concentrated more on the overall functioning of the body, whether it's of a kid or an adult.

SUNDROP FRESHLITE:

This oil mainly targeted the local housewives and working class people who are not able to eat their food on time and places where the food is eaten after a specific interval of time from which it is prepared because cooked food stays fresher for a longer period of time when cooked in it.

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SUNDROP SUPERLITE:

This product targets the health conscious youth of our country that is between the age group of 22-35. Not only the youth it is also used very less when cooking food so it is also an ideal oil for the housewives who get both taste and health advantage in one package which also lasts longer than others.

Several other products are also launched which target the same segment of people in different ways depending upon what their needs are. Affordability is a great factor for the reluctant of rural people buying Sundrop which is a high premium brand. Hence, the brand decided to make products to target the rural areas, lower income and middle income earning people so that they could get the same kind of products under the same brand. The basic requirement is;

Need Satisfaction

The products to target this segment are:

SUNDROP GOLDLITE:

This product targets mainly on low and middle income group because of its low price and the product features like high smoking point and is non sticky hence for low income people it became a better option than the product with same price but less features.

CRYSTAL-PRODUCT OF SUNDROP :

It targeted the rural area people who are only considered about the cost of the product and the exteriors of the product. It was termed as a value for money by the company.

DEMOGRAPHIC SEGMENTATION

Healthy oil was preferred by educated housewives and not by uneducated rural women. Sundrop focused mainly on urban population because of its high quality product and benefits are very difficult to explain to the rural India. Healthy oil category was undifferentiated in the minds of rural India. Keeping in mind about the health conscious people which are present in all age group, Sundrop has kept its uniqueness of providing a healthy oil which is less on cholesterol and hence good for heart. Lower income group was more or less not entertained by Sundrop due to quality. Sundrop created awareness in youth towards the health implications of cooking oil and launched ads to educate youth which they named as Sundrop Cholesterol Management.

BEHAVIOURAL SEGMENTATION

Sundrop, to compete with different brands available in market, Sundrop launched four different variants with different prices. In addition to that they saw the main purpose of its main competitors to

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launch new products for every need of the customer in the same segment. For E.g. Sundrop Superlite was launched for people who want to reduce their weight.

ANALYSIS OF PRODUCT AND GENERIC COMPETITION TO THE BRAND

ANALYSIS OF PRODUCT

The name 'Sundrop' was chosen after extensive research. The brand cued the category at the product level, and at another level associated the brand with 'goodness/purity' in every drop.Before launching the brand, it was essential to understand the consumer and gauge her/his needs, identify different segments and the target group of the brand.

It was found that after milk, oil accounted for the highest cash outlay in a housewife's monthly expenses. also due to bulk purchases which led to higher cash disbursals at one go, housewife's were highly price - sensitive when it came to edible oil purchase. Brand loyalty was very low.

Research also indicated that the key attributes sought by the consumer in an edible oil were taste, quality, health and value for money.

Product Overview

Source: Agro Tech Foods Limited

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Product Pricing

Product Packaging

Sundrop SlimLite Sundrop Heart Sundrop SuperLite Advanced

Sundrop SuperLite Sundrop FreshLite Sundrop Nutrilite

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Sundrop Nutrifit Sundrop Goldlite

Sundrop Variants

SuperLite Nutrilite Heart

- 100% sunflower oil. - Launched in 2001 - Launched in 2003- Rich in natural vitamin E - Blend of Soyabean & Sunflower oils, - Unique & scientific blend of high quality & Omega - 6 & was re-introduced in 2004 specially processed Rice Bran (80%) &

as 100% Soyabean oil Sunflower (20%) oils. - It is rich in Omega-3 & Omega-6 - Has an micro nutrient called Oryzanol which reduced bad cholesterol.

SuperLite Advanced GoldLite FreshLite

- Launched in 2009 - Launched in 2009 - Launched in 2010- Variant of existing Superlite. - Low in saturated fat - Scientific blend of Canola oil (70%) & - With added DMPS (Dimethyly Polysiloxane) - Has antioxidants Sunflower oil (30%) - Rich in Essential Fatty Acid - Good Inherent Stability (GIS)

SlimLite Nutrifit

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- Launched in 2011 - Launched in January 2012.- It is a cooking Spray - Contains Omega 3 - Low in saturated fats - Natural Antioxidants which helps

the body fight disease

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STRENGTH

Dominant player in Sunflower oil.Uses health PlatformStrong affiliation with ConAgra Foods Inc of USA, world's third largest foods Largest selling oil brand holds 15% of branded oil market.

SWOT ANALYSIS

OPPORTUNITY

Sharp increase in demand of branded oil.High market awareness in metropolitan city of branded oil.Health conscious people are increasing.

THREATS

The threat of low price competition.Winner, Fortune Nature, Fresh, Saffola are big competitor.Threats of substitute.A large number of domestic as well as multinational players.

WEAKNESS

Limited market penetration in edible oil market.Taste of Sundrop heart is less tasty.Rural area are not in the approach of company.Price of product is slightly high that affect the demand.

GENERIC COMPETITION TO THE BRAND

Below are the Sundrop generic and direct competitors:

Pros Cons

Olive oil

• Rich in monounsaturated fat.• Includes photochemical that can lower blood cholesterol levels and reduce the risk of cancer.• Rich in antioxidants.• Its storage life is longer than other oils and it can be frozen (freezing also preserves the nutrients in the oil)

• Olive oil will lose some of its flavor when heated.• The oil can become unstable when heated at high temperatures, which can create a cellular imbalance in those who consume it, increasing the risk of heart disease.

Oats

• Taste good.• Rich source of B vitamins, fiber, protein, iron and zinc.• low in fat and have zero cholesterol.

• Contains High carbohydrate.• Oats have more pureness than other cereals such as whole grain wheat, rye, sweet corn and barley.

Soybean oil• High in omega-3 content• Great source of vitamin E• Rich in polyunsaturated fatty acids

• Not stable enough to withstand high cooking temperatures• There is scientific literature that suggests the toxin 4-hydroxy-trans-2-nonenal forms when the oil is heated to very high temperatures (via pan or deep frying)

Canola oil

• Low in saturated fat• High in monounsaturated fat• Contains a significant amount of omega-3 fatty acids• Has the best fatty acid composition (good fat vs. bad fat) when compared to other oils

• Has the potential to become rancid more quickly than other oils• When heated at high temperatures (via pan frying), the resulting smoke from the oil has been linked to increased rates of lung cancer• There is scientific literature suggesting that a toxin (4-hydroxy-trans-2-nonenal) forms when canola oil is heated to very high temperatures.

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Margarine

• Tastes good• Lower in fat than most oils and butter• Easy to use (spreadable)• Available in a variety of different products• Source of vitamin E

• Although lower in fat than butter, most brands of margarine are made with hydrogenated oils (hydrogenation is a process that solidifies oil -- this process produces trans fat, which has been linked to high cholesterol and other health issues).

Edible Oil Prices

Price of Cooking Medium

Premium>Rs. 80

Sundrop and Saffola Blended oils, Sunflower, Safflower

Popular<Rs. 80

Fortune, Dhara, Gold Winner, Gold Drop and Sweekar

Sunflower, Mustard, Groundnut, Soya

Low End<Rs. 50

Raag GoldDalda Vanaspati

Cotton Seed, Palmolein, Vanaspati

*Price per litre

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STRATEGIES ADOPTED OVER TIME BY THE BRAND TO TACKLE COMPETITION OR PRIME MARKET EXPANSION

Sundrop kept main focus towards health and stayed with the tag line Healthy Oil for Healthy People. Hence, Sundrop targeted health conscious consumers to expand. Sundrop was positioned based on two parameters Health Conscious Image and Price. It is to be rated high in health conscious image and low in price.

Sundrop adopted strategy and execution in two folds:

1. Position Sundrop as the healthy oil for healthy people2. Ensure that this did not in any way erode the delivery of the 'taste' benefit

In addition, Sundrop also had to ensure that it was perceptually as far away as possible from Saffola. It had to have a young, modern and premium feel without cueing 'expensive'. Also, it had to develop an execution that was relevant, distinctive and original so that it stood out of the clutter of ordinary food and oil advertising.

The creative execution, therefore, avoided the cliched, standard pictures of the family at the dinner table appreciating the food, food being cooked and the pack shot at the end of the advertisement.

The commercial instead featured a frisky, lively and energetic kid, a symbol of good health, who picks up the aroma of his mother's cooking, jumps out of bed and goes through his fantasy of larger than life mouth watering dishes. The use of the yellow colour in the settings was used to further reinforce the associations of health and cue the oil type. Another interesting device was the pouring of the oil that forms to become the Sundrop logo.

When many food majors have jumped on the health bandwagon. Sundrop launched a new product, Sundrop SlimLite cooking spray. Sundrop SlimLite is the first olive oil and pure canola oil in Agro Tech Food’s portfolio. In the olive oil segment, it will directly compete with international brands like Carbonell, Leonardo, Figaro and Bertolli.

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Pricing Strategy of Sundrop

Sundrop became expensive at the market place, hence the company started exploring ways of bringing down the price to competitive levels. The strategy was to launch variants of Sundrop and cut down the costs on packaging, transportation, processing and handling activities. At the same time, the company continued to invest in advertising and promotion of the brand. Sundrop has different products to suit different customers. Since Sundrop oil commands a premium of 15 per cent over other edible oil brands, the company should be able to cater to the demand of the all the customers from different purchasing power groups.

Sundrop launched three new products:-

Sundrop Goldlite - Rs 59 per litre Sundrop Nutrilite - Rs 59 per litre Sundrop Superlite - Rs 67 per litre

It would also continue its research pertaining to the introduction of other variants of Sundrop oil.

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DISTRIBUTION STRATEGY FOLLOWED BY THE BRAND

Agro Tech first entered into an agreement with ITC Ltd., for providing technical and marketing consultancy services to the company. has a network of 1000+ distributors spread across the country and reaches 130000 odd outlets to sell their products.

Sundrop had distribution strategy through direct selling agreements in place with key accounts like Reliance Retail, Subhiksha, Spencers, Food World, Big Bazaar, Heritage, Bharti-Walmart, etc... Sundrop has a strong presence and a proactive stance with respect to modern trade.

Agro Tech reaches 3500 towns across the length and breadth of India and over 265,000 retail stores sell our products (traditional trade stores, visited by consumers at a high frequency).

In the competitive market keeping price in mind, Agro Tech Foods has tied up with Parakh Foods to manufacture Sundrop more cheaply.

Supply Chain

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Raw Material Vendors

Plants

Regional Distribution

Centers

DepotsDirect

Distributors Retailer

Super Distributors Stockists

'FEET ON THE STREET' initiative has been taken by the company. Under this concept, company is in the process of increasing retail distribution and consumer awareness of the product. Company has recruited salesmen and consultants who are responsible for increasing the distribution and display of products across the country. Also company has hired rickshaw pullers on a monthly salary to distribute products which resulted into cost-effective way to expand. Under this concept company has renamed its subsidiary 'Heera Seeds Trading and Warehousing Limited' to 'Sundrop Foods India Limited'.

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SUMMARY REGARDING THE FUTURE DIRECTIONS FOR THE BRAND

Agro Tech Foods Ltd Company has a history of innovation and is constantly looking for opportunities to make a difference. After successfully launching of various edible oils variants under brand Sundrop, Company has launched less cholesterol edible cooking oil for premium segment customer group like heart patients and health cautious customers. And, also launched Cooking Spray under the brand Sundrop with the name ‘Slimlite’. Company should continue to focus on innovation as a driver of growth.

Agro Tech Foods Ltd Company should plan to extend its Sundrop brand to high-margin variants and should increase its product portfolio to ready-to-eat meals, oil sprays in cans and peanut butter in bottles and tubs, as it looks to grow both volumes and margins.

Following are the additional future directions:-

The company should approach the rural areas to widen their base and reach which would bring more profit for them.

The company should think of reducing their price slightly which might affect the demand of the oil during inflation.

Sundrop should come up with a mustard oil of their own which can be less on price and high on quality.

Increase the taste of Sundrop Heart oil. To utilize the cheaper human resource to expand their base on domestic and export markets.

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Bibliography

www.business-standard.com Agro Tech Foods Ltd Company website www.google.com Marketing Management Book - Philip Kotler Business Line

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PHASE II

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HYPOTHESES AND JUSTIFICATION

Sundrop oil has been successful in positioning itself as a healthy oil.

Sundrop oil was launched as a Healthy oil and concentrated on that segment of the market which is health conscious. Even the tagline is "The healthy oil for healthy people" which focuses in the areas of health. By this hypothesis we would like to understand whether Sundrop oil has been successful in positioning itself as a healthy oil.

Sundrop oil is more popular in urban areas than in rural areas.

It has been seen that popularity and consumption of Sundrop oils are very high in urban areas than in rural areas. By this hypothesis we will come to know about the popularity and hence the pattern of consumption of Sundrop oil in urban and rural areas. (among an affluent rural areas people)

Consumer will shift from regular edible oil to cooking spray oil in future.

As Sundrop oil has recently launched Sundrop Slimlite Cooking Spray. This is the next generation way of cooking food which helps you to stay slim and healthy without compromising on taste. By this hypothesis we would like to understand whether consumers will shift to Sundrop Cooking Spray oil.

LIST OF INFORMATION REQUIREMENTS TO BE COLLECTED FROM THE

RESEARCH

Customer's awareness about the product. How do people identify Sundrop oil in terms of Price, Health, Taste and Quality? Product Popularity in urban and rural areas. Factors influencing the purchase decision for edible oil. Awareness about Sundrop Cooking Spray oil. The levels of brand awareness among the consumers of edible oils.

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THE INSTRUMENTS OF DATA COLLECTION

Questionnaire Method: A questionnaire consists of a set of questions presented to respondents. Because of its flexibility, it is by far the most common instrument used to collect primary data. There are two basic types of questions:

Close-end questions: We specify all the possible answers and provide answers that are easier to interpret and tabulate.

Open-end questions: We allow respondents to answer in their own words.

In this we will be using both Close-end questions and open-end questions to collect primary data.

Online Survey: Due to geographical constraint and to cover maximum people we would be using this method. In this method we will email/upload above questionnaire on the internet e.g. Social Networking site or by email.

Face to Face Survey: First we will conduct survey within the Praxis Business school campus and then we would be visiting places nearby Praxis Business School, Kolkata to conduct survey in rural areas.

SAMPLING PLAN AND SAMPLE SIZE

Sampling Plan: We would be considering all the age groups in survey irrespective of gender. Also, we would be conducting survey in rural areas to know whether popularity of Sundrop oil is constrained with in urban areas or it is popular in rural areas as well. Sample Size: We will take Sample Size of 75 to 100 people to capture the wide variety of Sundrop consumer.

METHODS OF DATA ANALYSIS TO BE USED

Pie Chart - We can use pie chart to know the preferences of the people. This will help us to know awareness about Sundrop oil compare to other edible oils.

Histogram - We would be using histogram to know what factor customer will look while buying edible oil. This will help us to analyze the hypothesis.

Likert Scale - The Likert Scale is an ordered, one-dimensional scale from which respondents choose one option that best aligns with their view. The 'Likert scale' is a common interval-based multiple-choice style of question used in questionnaires.

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QUESTIONNAIRE

1) What kind of an edible oil do you use?

White Oil

Non-White Oil

2) Which type of an edible oil do you use?

Sunflower

Ground Nut

Soyabeen

Other:

3) At what price did you purchase an edible oil (1 litre) last time?

More than Rs100

B/w Rs 75 and Rs 100

Less than Rs 75

4) Out of these brands which brand(s) ad do you remember.

Gemini

Sundrop

Dhara

Fortune

5) What was the ad trying to convey? *Please mention here for all the brand(s) for those you have remembered the ad.

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6) When you buy an edible oil what following factors you give importance? Please rate them accordingly. (1 being lowest and 5 being highest)

1 2 3 4 5

Price

Health

Taste

Quality

Brand

7) (a) Rate the following factors according to your preference for Dhara oil. (1 being lowest and 5 being highest)

1 2 3 4 5

Price

Health

Taste

Quality

Brand

b) Rate the following factors according to your preference for Gemini oil. (1 being lowest and 5 being highest)

1 2 3 4 5

Price

Health

Taste

Quality

Brand

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c) Rate the following factors according to your preference for Sundrop oil. (1 being lowest and 5 being highest)

1 2 3 4 5

Price

Health

Taste

Quality

Brand

d) Rate the following factors according to your preference for Fortune oil. (1 being lowest and 5 being highest)

1 2 3 4 5

Price

Health

Taste

Quality

Brand

8) Which edible oil are you currently using?

9) (a) In terms of quality, please provide your statement for the following brands.

Strongly Agree

AgreeNeither Agree or nor disagree

Disagree Strongly Disagree

Dhara

Gemini

Sundrop

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Strongly Agree

AgreeNeither Agree or nor disagree

Disagree Strongly Disagree

Fortune

b) In terms of Health, please provide your statement for the following brands.

Strongly Agree

AgreeNeither Agree or nor disagree

Disagree Strongly Disagree

Dhara

Gemini

Sundrop

Fortune

c) In terms of value for money, please provide your statement for the following brands.

Strongly Agree

AgreeNeither Agree or nor disagree

Disagree Strongly Disagree

Dhara

Gemini

Sundrop

Fortune

10) (a) Are you aware of Cooking Spray edible oil?

Yes

No

b) If yes, then when you see a cooking spray available that promises you to stay healthy and slim. What do you think you will do?

Switch over

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May or may not switch over

Will not switch over

Not bother

Name

Age

Below 20

B/w 20 and 30

Above 30

Gender

Male

Female

Submit

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PHASE III

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HYPOTHESES 1

Sundrop oil has been successful in positioning itself as a healthy oil.

ANALYSIS OF THE HYPOTHESES

In the analysis of this hypotheses we have taken the sample size as follows:-Sample Size: 83(Urban - 63 and Rural – 20) and we have tried to find out what is the positioning of the brand in the market first and then to check whether this positioning has been successful enough to project sundrop as a healthy oil. So our first question and its findings are as follows:-

What kind of an edible oil do you use?

Urban Rural TotalWhite oil 63 20 83Non-white oil 10 15 25

By this question we have tried to find out that who all among our survey is using white oil of which sundrop is a category and who all are using non white oils. This question was asked by us as a reject or select question according to which we decided whether to proceed with the survey or not. If respondents selected white oil we preceded with the survey otherwise we stopped. We found that there were more people both in rural and urban areas who used white oil more. The next question was:-

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Sunflower Soyabeen Ground Nut Other0

10

20

30

40

50

60

70

Which type of an edible oil do you use?

This was a sub-question of the previous question we wanted to find out what type of oil in the white oil category are they using. Sundrop being white sunflower oil we wanted to find out how many people were aware of the sunflower oil and were using it. It was found that 62 people out of 83 people i.e. 74.70% were using sunflower oil so we proceeded to find out among the famous white oil brands people are most aware of which brand.

Sundrop Fortune Dhara Gemini0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Out of these brands which brand(s) ad do you remember.

According to this data we found that people were more aware of Sundrop’s ad than any other brand in its competition. Though they remembered ad of multiple brands at the same time but Sundrop turned out to be the most chosen brand in terms of ad recall. Out of 132 choices that people in our survey

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collected 57 were able to able to recall Sundrop’s commercials. So our next question to them was to get insight of what they remembered about the ad.

What was the ad trying to convey? The results were mixed and every oil was recalled for some reason or the other but Sundrop was always recalled in terms of health and out of the 57choices that were made by 83 people in our survey all 57options related Sundrop’s ad to health. Thus, we got the inkling that the positioning of Sundrop among the people was as healthy oil. So we proceeded with the survey to conclude the survey and asked the following questions.

Quality Health Value for money

3.58 3.59 3.603.18 3.16 3.31

4.33 4.353.963.92 3.98 3.77

Agreement/disagreement in terms of Quality, Health & Value for money

Dhara Gemini Sundrop Fortune

We compared different brands of edible oils with Sundrop on different parameters like quality, health and value for money to see how Sundrop is positioned in the market on the basis of these three parameters. The result was that the weighted average of Sundrop was 4.33 in terms of quality, 4.35 in terms and 3.96 in terms of value of money. So it was found out that Sundrop oil has been successful in positioning itself as healthy oil. We took other parameters to see whether people see it as other option than healthy oil. Hence we can say that our HYPOTHESES 1 IS PROVED.

Weighted average=Number of respondents X Rating Total Sample Size

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HYPOTHESES 2

Sundrop oil is more popular in urban areas than in rural areas

ANALYSIS OF THE HYPOTHESES

Rural areas are more price sensitive and thus we first wanted to know the price at which they buy there edible oil so we asked the following question to them as well as the urban population to compare the choice and effect of price on choice:-

36%

58%

6%

At what price did you purchase an edible oil (1 litre) last time?

More than Rs100 B/w Rs 75 and Rs 100 Less than Rs 75

It was found from the survey that most of the people in our sample of 83 people purchased oil in the range of Rs75-100.In this survey out of 63 people surveyed in urban areas 38 choose this option and out of 20 people in rural areas 10 chose for the same. Though 60.3% of urban people selected this option 50% rural people also went with this option. Thus it was clear that though the rural people were more price sensitive when buying an edible oil. So we asked them the following question:-

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51%

23%

8%

5% 13%

Which edible oil are you currently using?

Sundrop Fortune Safola Dhara Other

Sundrop was among the top brand to be consumed by the people.Among the 63 urban people 35 people were using sundrop currently and among the 20rural people 7people were currently using sundrop.This means that 55.56% of the urban population were using sundrop and in rural 35.00% were using sundrop hence the consumption of sundrop was proved to be less in rural areas as compared to urban so we decided to check out the parameters on which they made their choices and thus we asked the following question that considered the above parameters to test the various brands accordingly

Price Health Taste Quality Brand0.00

1.00

2.00

3.00

4.00

5.00

Dhara

Price Health Taste Quality Brand

0.00

1.00

2.00

3.00

4.00

5.00

Gemini

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Price Health Taste Quality Brand0.000.501.001.502.002.503.003.504.004.505.00

Sundrop

Price Health Taste Quality Brand0.00

1.00

2.00

3.00

4.00

5.00

Fortune

Thus testing among the following brands and taking the weighted mean of the parameters it was found out that the various parameters that are essential for a brand to be popular and be consumed are less in rural areas as compared to urban areas whereas its competitors has a different story. HENCE WE CAN SAY THAT OUR HYPOTHESES 2 IS PROVED.

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HYPOTHESES 3

Consumer will shift from regular edible oil to cooking spray oil in future

ANALYSIS OF THE HYPOTHESES:-

In our study of this analysis the sample size i.e. 83 people(63-urban & 20 affluent rural) were surveyed and were asked the following question-

Yes33%

No67%

Are you aware of Cooking Spray edible oil?

As we can see from the pie chart above, out of the 83 people 56 people i.e. 67.47% of the people surveyed said that they are not aware of cooking spray edible oil and the rest 27 people i.e. 32.53% of the people surveyed said that they are aware of such type of an oil. Now that we have came to know that nearly 33% of the people surveyed are aware of it, we surveyed further to find out whether the people aware of it will opt for such oil which helps them to stay slim and healthy without compromising on taste. So our next question to the people who were aware of the product is as follows:-

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May or may not switch over

Switch over

Not bother

Will not switch over

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

If yes, then when you see a cooking spray avail-able that promises you to stay healthy and slim.

What do you think you will do?

Among the 27 people who agreed that they are aware of the cooking spray edible oil 15 people (55.56%) i.e. the majority of people said that may or may not switch over, 7 people (25.93%) said that may switch over to such a product, 3 people (11.11%) said they are not bothered about such product and 2 people (7.41%) said that will not switch over and will continue with the oil they are currently using.

Thus, our hypotheses consumer will shift from regular edible oil to cooking spray oil in future is not proved since only 7 people out of 83 people we have surveyed have accepted that they will switch over to a cooking spray edible oil i.e. merely 8.43% of the total people covered in our survey. But it was also seen that among the people who were aware of the following product are willing to switch over in a greater number i.e. out of 27 people who were aware 7 people i.e. nearly 26% were ready to switch over that constitutes of around 33% of the people who were aware of the product. It means that if the awareness of the cooking spray is made more prominent then it could further lead to the increase in its consumption and consumer will shift from regular edible oil to cooking spray oil in future. Hence according to our survey and the statistics prepared we can say that our HYPOTHESES 3 IS NOT PROVEN.

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SUMMARY OF FINDINGS AND NET TAKE AWAY

SUMMARY OF FINDINGS:-

In phase 1 of our project we learned about how Sundrop evolved as a brand and its history. Sundrop positioned itself as the healthy oil in people’s mind and was successful in doing it. We also found that it was more consumed in urban areas than in rural areas due to its price and health factors. It has various types of oils and the new addition was the cooking spray oil which was launched to target health conscious people.

In phase 2 we made hypotheses of the various factors and made a questionnaire we thought were important to find out to help in analyzing the various factors that will give us the better insight of what the brand has talked about and what we learned.

In phase 3 we came to know that the company was only popular in urban areas because it always targeted the urban areas and the affluent people in rural areas and that the cooking spray will not be a good market strategy to launch by sundrop.

NET TAKE AWAY

We found out that the findings and belief of a company and its strategies are completely different than what a real research suggested and the take away was that the research survey is always a better solution to find out the market position and then to plan out the STP (SEGMENTATION, TARGETING AND POSITIONING)of any product and to then build out future plans.

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