Cargill Vinod

PROJECT REPORT

ON

Market research for premier oil category of sunflower oil with detailed analysis and

data mining of key competitor brands for positioning of new brand from Cargill

Submitted in partial fulfilment of PGDM program2011-13

Submitted by:Saurabh Jindal

FC11168

Corporate Mentor Faculty Mentor

Amit Raju Deepika Saxena

Regional sales manager

Cargill India pvt.ltd

CERTIFICATE

This is to certify that the project work done on “Market research for premier oil category

of sunflower oil with detailed analysis and data mining of key competitor brands for

positioning of new brand from Cargill”. Submitted to Apeejay School of Management,

Dwarka by Vinod Kumar Mal in partial fulfilment of the requirement for the award of PG

Diploma in Business Management is a bonafide work carried out by him/her under my

supervision and guidance. This work has not been submitted anywhere else for any other

degree/diploma. The original work was carried out during 23rd April 2012 to 22nd June 2012

in Cargill India Pvt. Ltd.

Date: Divya Jindal

Seal/Stamp of the Organization Coordinator

Apeejay School Of Management

New Delhi

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunate enough

t o ge t suppo r t f r om l a rge number o f pe r sons t o whom I sha l l always

remain grateful. Wi th immense p l ea su re I wou ld l i ke t o exp re s s ou r s i nce re

t hanks and gratitude to Mr. Dinesh Tendon (Zonal Sales Manager) and Mr. Amit

Raju (Regional Sales Manager) for having given us this privilege of working under them and

completing the study and the valuable time, advice and the support that they offered.

We are desirous of placing on record profound indebtedness to dean sir Deepankar

Chakraborti and my mentor Divya Jindal whose help, stimulating suggestions and

encouragement helped me in all time of research.

We would be failing in duty if we do not acknowledge the gratitude to all the employees of

Cargill India Pvt. Ltd. who motivated us a lot in carrying out this project and whose

kind supervision, keen interest and valuable suggestions helped in the successful

completion of this work.

Last but not the least; I cannot forget the help and co-operation I received from my family

members without whom this project would not have been a grand success.

TABLE OF CONTENTS

Executive Summary

Chapter1. Introduction to the topic

Chapter2. Introduction to the oil industry

Chapter3. Company profile

Chapter4. About the project

Chapter5. Literature review

Chapter6. Research methodology

Chapter7. Data analysis and findings

Chapter8. Title, objective, scope and significance

Chapter9. Conclusions

Chapter10. Recommendation

Chapter11. Bibliography

Chapter12. Annexure

EXECUTIVE SUMMARY

This Study gives you an overview of the various aspects of SWEEKAR REFINED

SUNFLOWER OIL .With emphasis on customers, competitors, dealers and Retailers. The

study also throws some light on the overview of Cargill Foods in India, as well as in the

Global Scenario.

Founded in 1865, Cargill is one of the largest international providers of food, agriculture and

risk management products. With more than $120 billion turnover and operations spread

across 67 countries, Cargill today employs more than 1, 67,000 people across the world and

is trusted across for its commitment of Cargillishing people.

In India, Cargill has an access over 1200 towns and 2, 50,000 retail outlets. Since its

inception in 1987, Cargill has been a part of Cargill lives with the most innovative and best

quality products.

Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils

and fats to wholesale trade, industrial and household consumers across India. We own and

operate Cargill vegetable oil refining facilities – three are located on east and west coast ports

of India, the other is located in western India. Refined Oils India markets a range of refined

sunflower, soya, palm and ground nut oils, hydrogenated fats and bakery shortenings under

Cargill national brands, Nature Fresh, Gemini, Sweekar, Rath and other region-specific

brands.

The Project given was related to the launch of SWEEKAR REFINED SUNFLOWER

OIL. The main objective was to find out the feasible Retail Outlets to place the product

being launched and Analysis and data mining of key competitor brands in Sunflower oil

category.

CHAPTER 1

INTRODUCTION TO THE TOPIC

Despite rising prices of premium edible oils, consumption demand in India has been growing

with a blistering pace to keep up with. Per capita consumption of premium edible oils in the

country has shot up from around 3 kg in 1950 to 14.2 kg in 2011.such a high rise in demand

for premium oil made the company think of launching of their new product SWEEKAR.

The project comprised of three stages;

Planning

Implementation

Verification

Planning: This was the first phase of our launch process wherein we were supposed to find

out how much approximately the customer prefer Saffola, Sundrop and other premium

category oil so that the launch of SWEEKAR becomes much easier.

Implementation: This was the second phase of the launch phase where we were supposed to

launch the new product SWEEKAR on listed wholesale and retail outlets all over Delhi and

NCR. I worked in East Delhi area along with the area sales manager, sales officers and

distributer sales person of that particular area.

Verification: With the successful completion of planning and implementation stages comes

the verification stage. During this stage we tried to find out the following:

Whether the new product was properly placed with the retailers and wholesalers?

Whether the retailers were able to sell the product?

Whether the consumers themselves were asking for the product or whether it was

retailers who were making them aware of the product?

CHAPTER 2

INDIAN EDIBLE OIL INDUSTRY

Ind i a i s t he l a rge s t impor t e r o f ed ib l e o i l and t he t h i rd l a rge s t

consumer ( a f t e r China and Europe). Of the total 5.0-5.5 million tons of vegetable oils

importedI n d i a a n n u a l l y , 1 . 3 1 . 5 m i l l i o n t o n s i s s o y a b e a n o i l ,

i m p o r t e d m o s t l y f r o m Argentina, Brazil and United States, nearly 3 million tons of

palm oil is purchased f rom Ma lays i a and Indones i a . Pa lm o i l impor t ed i n to

Ind i a i s u sed i n va r i ous forms- consumed directly as “palm oil” after refining used

in

vanaspa t i , f o rb l end ing w i th o the r vege t ab l e o i l s , r aw o i l and ke rne l o i l s

f o r i ndus t r i a l pu rpose s . Pe r Cap i t a consumpt ion i s a round 10 kg/year.

Pa lm and Soya bean oil account for half of the total edible oil consumption in India

followed by Mustard and Groundnut Oil. The sha re o f r aw o i l , r e f i ned o i l and

vanaspa t i i n t he t o t a l ed ib l e o i l ma rke t i s estimated as 42%, 48% and 10%

respectively (Department of Food and Public Distribution, GOI). India has close to 9% of

global oil seeds production, making it the largest producers of oilseeds in the world. Over

50% of the total volume of the edible oil sold in India being imported in 2010.

MARKET SHARE OF EDIBLE OILS IN INDIA

OIL PERCENTAGE

Palm oil 38

Peanut 14

Sunflower 8

Soya bean oil 21

Rapeseed 13

Cotton 6

List of Edible Oil players in India

Fortune Adaani Wilmar LimitedSweekar Cargill India Pvt. Ltd., USANature freshGeminiDalda Bunge India Pvt. Ltd, USASaffola Merico Ltd, IndiaParachuteSundrop Agro Tech Foods Ltd (Conagra Foods)R R Primo RR Omerbhoy Pvt. Ltd. Dhara Dhara Co. Ltd NDDB Campus, AnandPanghat Mawana Sugars Ltd.Tilsona Recon Oil Industries Private Ltd.Figaro Consumer Marketing (India) Private Ltd.Shalimar’s Shalimar Agro Tech Pvt.ClassicBasmatiPalm Sarda Agro Oil Ltd.Gold Active Ruchi Infrastructure Ltd.Ruchi Gold

In edible oil The Adani-Wilmer owned Fortune brand is India’s number in edible

oil according to A C Neilson Retail Audit . Fortune, which is present as a refined soya

bean oil, sunflower oil, groundnut oil and mustard oil is said to have a market share

of around 50 % in the entire edible oil market. Mar i co Indus t r i e s have a ma rke t

sha r e o f 13 % wi th b r ands l i ke Sa f fo l a , e t c

Consumption Pattern of Edible Oils in India

I n d i a i s a v a s t c o u n t r y a n d i n h a b i t a n t s o f s e v e r a l o f i t s r e g i o n s

h a v e developed specific preference for certain oils largely depending upon the

o i l s ava i l ab l e i n t he r eg ion . Fo r example , peop l e i n t he Sou th and

Wes t p r e f e r g r o u n d n u t o i l w h i l e t h o s e i n t h e E a s t a n d

N o r t h u s e m u s t a r d seed/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 m ix tu r e .

Vanaspa t i ha s an impor t an t r o l e i n ou r ed ib l e o i l e conomy . I t s production

is about one million MT annually. It has around 13% share of the edible oil market. It has the

ability to absorb a heterogeneous variety of which do not generally find direct marketing

opportunities because of consumer preferences for traditional oil such as groundnut oil ,

mustard oil, sesame oil etc. For example, newer oils like Soya bean, sunflower, rice bran

cottonseed and oils from tree and forest sources have found their way to the edible pool

largely through vanaspati route. Of late, things have changed through technological.

A l l o i l s have been r ende red p r ac t i c a l l y c o l o r l e s s , o d o r l e s s a n d

t a s t e l e s s a n d , t h e r e f o r e , h a v e b e c o m e e a s i l y interchangeable in the

kitchen. Newer oils which were not known before have entered the kitchen, like those

of cottonseed, sunflower, palm oil or its liquid fraction, Soya bean and rice bran. All

of them are again e s sen t i a l l y b l and , p roce s sed ed ib l e o i l s . Abou t 60 -

70% p redominan t l y groundnut and mustard seeds are used to make non-refined

or filtered oils. These tend to have a strong and distinctive test preferred by most

traditional customers.

About 70% of these filtered oils produced are by the organized and semi-

organized sector plants producing from 2000-10000 MT per month. It is often

branded by large manufacturers.

Lowerc o s t f i l t e r e d o i l p r o d u c e d i s m a i n l y b y t h e s m a l l s c a l e

v i l l a g e s b a s e d processors. The oil is mostly sold loose directly to the

consumers from a va r i e t y o f con t a ine r s , o f t en w i th in 2 -

3 days o f p roduc t i on .

These l oca l c ru she r s w i l l p roduce be tween ha l f and two MTs pe r

mon th . T h i s decentralized production and marketing pattern may account for around

20% o f a l l e d i b l e o i l s i n t h e c o u n t r y . T h e s h a r e o f r a w o i l ,

r e f i n e d o i l a n d vanaspati in the total edible oil market is respectively 42.0%,

42.7% and13.4%

(In Lakh Tonnes)

Oil Year(Oct-Nov)

Production of oil seeds

Net availability of edible oil from all sources

Consumption of edible oils(from domestic and import sources

2000-20001 184.40 54.99 96.76

20001-2002 206.63 61.46 104.68

2002-2003 148.39 46.46 90.29

2003-2004 251.86 71.40 124.30

2004-2005 243.54 72.46 117.89

2005-2006 279.79 83.16 126.04

2006-2007 242.89 73.70 115.87

2007-2008 297.55 86.54 142.62

2008-2009 305.24 81.24 157.43

2009-2010 310.32 79.74 165.92

2010-2011 318.76 80.65 171.23

Source:

(i) Production of oilseeds: Ministry of agriculture

( i i ) Ne t ava i l ab i l i t y and consumpt ion o f ed i b l e o i l s : D i r ec t o r a t e o f

Vanaspati, Vegetable Oils.

Future of Indian Edible oil Industry

Demand drivers

Macroeconomic factors : Population

growth, per capita

income, purchasing power, oilseeds crop

Other factors : Prices

- domestic/ international Availability, etc

Influence of branded products - `health’

message.

Key Success Factors

Growing preference for convenience

foods.

Raw material sourcing : focus on

improving yields, getting better quality

oilseeds , ensuring regular supplies -

through symbiotic relationship with

farmer

Branding essential for success (e.g.

Vanaspati – Dalda, Oils - Sun drop)

Better distribution network to improve

reach.

Efficiency in operation - to become price

competent and withstand overseas

competition.

Proposed Future trading in edible

oils will help curtail price volatility and

lend knowledge - based assistance to

farmers of eliminate unofficial markets

Future In the next five years, the market for

Edible oils will grow by 8 to 9% to 14.65

million MT

Business Concerns

Free imports, low import duties and

slump in global prices - lead

to `dumping’

Domestic industries of

edible oils affected – low realization and

idle capacities in oil industries

Production slippages have also forced

imports

Excessive (cheap) imports of oilseeds -

led to remunerative prices, locally

Hence, farmers have shifted to other

cash crops

Salient Features of edible oil industry

o The Indian edible oil industry is highly fragmented.

o The share of branded oils segment has remained low over the years.

Cut down import duties on edible oil since April 2008

In past, the edible oil industry has witnessed organic and inorganic expansion.

CHAPTER 3

COMPANY PROFILE

Exploring the roots of Cargill from 1865-present

Cargill has a long, rich heritage, starting with W. W. Cargill's first grain storage

facility on the American frontier in 1865. The company has grown to become one of

the largest, privately-owned businesses, providing food, agricultural, risk

management, financial, and industrial products and services around the globe.

A Summary of Cargill's History

1865

William Wallace Cargill leaves the family home in Janesville, Wisconsin and becomes the

proprietor of a grain flat house in Conover, Iowa. The flat house, a type of warehouse that

preceded country elevators, was at the end of the McGregor & Western Railroad line.

1867

W. W. Cargill and his younger brother, Sam, form a partnership: W. W. Cargill and Brother.

W. W. moves to Lime Springs, Iowa, where the business constructs a grain flat house and

opens a lumberyard.

1868

W. W. Cargill marries Ellen Stowell in Ossian, Iowa, and moves to Austin, Minnesota,

where he builds his first Minnesota flat house. W. W. Acquires storehouses to take advantage

of the great post-war agricultural and railroad expansion throughout the plains.

1870

W. W. Cargill's business is headquartered in Albert Lea, Minnesota to take advantage of

the expansion of the Southern Minnesota Railroad. About this time W.W.'s brother, Sylvester

S. Cargill, becomes independent, eventually establishing the Victoria Elevator Company in

Minneapolis.

1884

John H. MacMillan, 15 years old, goes to work in his father's bank in La Crosse, Wisconsin.

W. W. Cargill & Bro. in La Crosse is formally separated from Minnesota and the Dakotas by

the establishment of Cargill Brothers in

Minneapolis.

1885

The three Cargill brothers own or control 102 structures in Minnesota and the Dakotas (and

smaller holdings in Iowa and Wisconsin) with a total grain capacity of over 1.6 million

bushels. By this time, Minneapolis and Duluth are identified as prominent grain centers.

1887

W. W. Cargill forms the Sault Ste. Marie Land Company to take advantage of the growth

expected after the Soo Line railroad connected the lock area with Minneapolis. Sam Cargill

leaves La Crosse to manage the Minneapolis, Minnesota office.

1890

The Minneapolis operation, under the direction of Sam Cargill, drops the "Cargill Bros."

name and incorporates under Cargill Elevator Co.

1891

Three MacMillan brothers, John H., William D., and Daniel D. move to Fort Worth, Texas,

to set up a grain business under the name D. D. McMillan & Sons.

1892

W. W. Cargill & Bro. incorporates as W. W. Cargill Company of La Crosse, Wisconsin. Sam

Cargill opens an office in Duluth, Minnesota, and the Cargill Commission Company is

formed to trade grain in Duluth.

1903

Sam D. Cargill dies, creating a void in leadership. John H. Macmillan, Sr., moves to

Minneapolis from Arkansas to become general manager. W. W. Cargill becomes the sole

owner of the La Crosse business after Sam's death.

1908

William S. Cargill is in Montana organizing a development effort that ultimately will involve

ranching, land development, the development of the Montana Western Railway, a dam, and

the creation of the town of Valier. The project is not profitable and begins to stress the

finances of the La Crosse grain business

1911

A portion of the assets of Sawyer and Austin Lumber Company is sold to raise funds. The

mineral rights to the Arkansas land are retained, and eventually leased to American Bauxite

Company, generating much needed cash through 1922.

1922

Julius Hendel joins the Cargill organization and takes charge of the newly established grain

laboratory in Minneapolis. The grain lab will become one of the most respected private

laboratories in the country. Hendel's laboratory study on flour appears the following year in

the North-western Miller.

1926

A fire in British Columbia destroys the logging camp. Austen Cargill returns to Minneapolis

and becomes head of the Cargill Commission Department, focusing his attention on the

management of the company's country elevators.

1927

Cargill leases the 1.5 million bushel Superior elevator in Buffalo, New York and another

elevator at Port McNicoll, Ontario, beginning its reach eastward. John MacMillan, Jr.,

marries Marion Dickson.

1999

The University of Minnesota receives $10 million from Cargill to expand the

University’s work in the emerging field of microbial and plant genomics.

Cargill launches Strategic Intent, which involves positioning the company so that “by the

year 2010, Cargill will be the recognized global leader in providing agrifood chain customers

with solutions that enable them to succeed in their businesses.”

2000

Cargill Dow Polymers LLC announces plans to build a world-scale facility in

Blair, Neb., that will use corn-derived dextrose to make polylactide (PLA)

polymers for fibres, plastic packaging and other products. President Clinton

presented the 1999 Malcolm Baldrige National Quality Award to Cargill's Sunny Fresh

Foods. Gregory Page becomes president. Warren Staley is elected chief executive officer and

chair of the board of directors. McDonald’s honors Sun Valley Thailand with its Sweeney

Quality Award, first Asian recipient of the award. The hybrid seed business in North

America is acquired by Mycogen Seeds.

2003

Cargill’s earnings surpass US $1 billion for the first time in its history. Cargill adds to its

chocolate portfolio with the acquisition of Peter’s Chocolate, a brand dating from the 1880s,

and OCG Cacao, a European maker of industrial chocolate. Cargill’s global giving exceeds

US $22 million.

2004

Cargill Fertilizer and IMC Global combine to form a publicly traded firm, The Mosaic

Company. Cargill acquires The Duckworth Group, a UK-based flavour house. Cargill

Animal Nutrition has a presence of 163 plants in 22 countries. Cargill announces an

agreement to acquire Seara Alimentos, a major Brazilian poultry and pork producer.

2005

Cargill India and Parakh Foods enter into a joint agreement to produce and market vegetable

oil. Black River Asset management, a global asset managementcompany, is launched. Ocean

Transportation Unit ranked No. 1 in dry bulk freight by Risk magazine (February 2005).

Cargill purchases Romanian edible oil producer Olpo, expanding its investment in the Black

Sea region. Cargill opens first office in Dubai, United Arab Emirates.

Despite its size, the corporation is still a family owned business; descendants of the founder

(from the Cargill and MacMillan families) own about 85% of the company. This means that

most of its growth has been due to reinvestment of the company's own earnings, rather than

public financing. Greg Page is the chief executive officer of Cargill; he succeeded Warren

Staley in mid 2007. Cargill's quarterly profits crossed $1 billion for the first time during the

quarter ending on February 29, 2008 ($1.03 billion); the 86% rise was credited to global food

shortages and the expanding biofuels industry that in turn caused a rise in demand for

Cargill's core areas of agricultural commodities and technology. It is an INVISIBLE

GIANT which is grooming day by day.

Cargill acquires Parakh Foods with brand "Gemini" and sets up a new Business Unit called

Cargill Refined Oils India. This is first business unit with headquarters in India. Cargill

launches Saanjhi Unnati Program in Rajasthan for development of malt barley in active

collaboration with the Government of Rajasthan and SAB Miller.

2006: Cargill starts its sugar off shoring business to support the execution activities of Cargill

Netherlands.

Cargill sets up CarVal India Pvt. Ltd.

Cargill enters into a joint venture in a project for setting up a

Green field sugar refinery in South India.

Cargill entered into tolling arrangements with local Soybean

Crushers in Maharashtra, Rajasthan and Madhya Pradesh Cargill enter into a joint

venture.

And subsequently owns and leads a shrimp feed manufacturing business in Rajahmundry

In Andhra Pradesh.

2007:

Cargill launches cotton trading business in India.

2008:

An independently managed subsidiary of Cargill, Black River Advisor India Pvt. Ltd., begins operations in India.

CARGILL PRESENCE

ASIA AFRICA MIDDLE EAST

Australia South Africa Poland

China Zimbabwe Portugal

India Ghana Romania

Indonesia Malawi Russian Federation

Japan Kenya Spain

Malaysia Tanzania Switzerland

Pakistan Morocco Sweden

South korea Nigeria Australia

Philippines Cote d’lvoire Belgium

Singapore Denmark

Finland

France

Germany

Greece

Hungaria

CENTRAL AMERICA SOUTH AMERICA

Bonaire ArgentinaCosta Rica BoliviaDominican Republic BrazilGuatemala ChileHonduras ColumbiaNicaragua Paraguay

Peru

CARGILL IN INDIA

Cargill’s operations in India started in 1987 completing 25 successful years in India. They

employ more than 2,000 employees working in offices and plants across the country and

have a network of warehouses and depots. Cargill has an access over 1200 towns and 2,

50,000 retail outlets. Since its inception in India, it has been a part of Cargill lives with the

most innovative and best quality products.

Cargill maintains a number of businesses in India with operations including handling and

processing a wide range of products including refined oils, grain and oil seeds, sugar, cotton

and animal feeds. In addition, Cargill develops flavor systems and operates a value investing

business. our presence in India has been growing since we began a joint venture operation in

1987 and today it has an access over 1000 towns and 2,50,000 retail outlets. Its head office is

located at cyber city phase 3 Guagoan ( Haryana).

Locations

Cargill India Pvt. Ltd.14th Floor, Building 9 A,

Headquarters

Capital or Major City

GOSC Offices

Oil Refinery

Regional Office

Animal Nutrition

Oil/Food Depot

Sugar Refinery

DLF Cyber City, Phase III,Gurgaon-122002 (Haryana)

Tel: +91 124 2358939, 409 0489Fax: +91 124 2358977

DISRTRIBUTION CHANNEL OF CARGILL INDIA PRIVATE LTD.

MANUFACTURER

(C AND F) DEPOT

SUPER STOKIST DISTRIBUTER

WHOLESALE

RETAILER

CUSTOMER

T h e e n d u s e r s o f t h e p r o d u c t s a r e : h o u s e h o l d s a n d

i n s t i t u t i o n a l b u y e r s [catering/hospitality/processed food/snacks] set-ups.

Cargill has set up a strong distribution network of Company Distributors and

super

stockiest. Th i s cha in he lp s t o t ap even t he sma l l r e t a i l e r s / t r ade r s and

t hus increases their reach.

.

HIERARCHY STRUCTURE OF CARGILL INDIA PVT LTD.

Chairman

Director

National sales manager

Regional business manager

Zonal sales manager

Area sales manager

Senior sales officer

Sales officer

Trainee sales officer

Interim sales representative

Distributer salesman

Vision

“Our vision is to be the leading player in Indian edible oils market and creating a distinctive

value for all stakeholders”.

Mission

“ We will develop and deliver value added products, which exceed statutoryrequirements

to satisfy our internal and external customers, by creating a cultureof continuous

improvement and will establish dominant position in ours chosenmarket, by achieving

competitive advantage in all functions and building and retaining a high performing

customer-focused team.”

Approach

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

Measures

“Our measures are engaged employees, satisfied customers, enriched communities and

profitable growth”.

Why choose Cargill?

People choose to work at Cargill for many reasons. Some say it is the respect they feel from

their supervisors. Some value the opportunity to make a difference through Cargill’s

community-involvement projects. Some just like that every day they can be themselves

and be rewarded for it. We help customers succeed through collaboration and innovation, and

are committed to sharing our global knowledge and experience to help meet economic,

environmental and social challenges.

Cargill’s guiding principles

It is not practical to set out detailed guidelines to govern every situation that might

arise in the conduct of our varied and complex global business. Instead, below are the

seven basic Guiding Principles that form the framework in which to examine

any problem arising in any country.

Cargill will comply with the laws of all countries to which it is subject.

Cargill will not knowingly assist any third party to violate any law of any country, by

creating false documents or by any other means.

Cargill will not pay or receive bribes or participate in any other unethical, fraudulent,

or corrupt practice.

Cargill will always honor all business obligations that it undertakes with absolute

integrity.

Cargill will keep its business records in a manner that accurately reflects the true

nature of its business transactions.

Cargill managers and supervisors will be responsible that employees, consultants and

contract workers under their supervision are familiar with applicable laws and

company policies and comply with them. Further, they will be responsible

for preventing, detecting, and reporting any violations of law of Cargill policies.

Cargill employees will not become involved in situations that create a conflict

of interest between the company and the employee.

Every year, all Cargill employees sign an agreement to live these principles

Cargill milestones in India

1987

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

1994

Cargill starts its fertilizer/crop nutrients operations in India.

1997

Cargill launches its primary sugar and edible oils trading business in India.

1998

Commences grain and oil seeds business in India.

2001

Launches food business under Cargill Foods – launch of brand “Nature Fresh”.

2003

Cargill acquires the Food Flavours business from Duckworth

Group UK, and Duckworth Flavours India becomes part of Cargill

India.

Cargill sets up green field edible oil refineries at Kandla and Paradip.

Cargill launches one stop agro-shops – Saathi Krishi Samadhaan

Kendras.

2004

Cargill diversifies its fertilizer business into a joint venture with IMC

global.

Cargill India's DAP business renamed as Mosaic India.

2005

Cargill acquires Parakh Foods with brand "Gemini" and sets up a

new Business Unit called Cargill Refined Oils India. This is first

business unit with headquarters in India.

Cargill launches Saanjhi Unnati Program in Rajasthan for development

of malt barley in active collaboration with the Government of

Rajasthan and SABMiller.

2006

Cargill starts its sugar off shoring business to support the execution

activities of Cargill Netherlands.

Cargill sets up CarVal India Pvt. Ltd.

Cargill enters into a joint venture in a project for setting up a green

field sugar

Cargill entered into tolling arrangements with local Soybean crushers.

2007

Cargill launches cotton trading business in India.

2008

An independently managed subsidiary of Cargill, Black River Advisor India Pvt.

Ltd., begins operations in India

2011

Recently the company acquired “SWEEKAR” from Marico to launch it again.

In India, where vitamin deficiency is major health concern, Cargill reaches 25

million people per month with cooking oil fortified with essential vitamins.

PRODUCTS AND SERVICES

CARGILL FOOD INDIA

Cargill Foods India processes, refines and markets a wide range of indigenous and

imported edible vegetable oils, fats and blends for the food industry. We serve

household consumers with packaged, branded and vitamin-fortified edible oils

and vanaspati (hydrogenated fats). We also offer high quality food ingredients from

our global portfolio and deliver a broad array of ingredient solutions to cater to the

growing needs of the food manufacturers and food service industry in India.

GRAIN AND OIL SEEDS

Cargill India is one of the largest originators and marketers of food and coarse grains in

India. We handle wheat, corn, rice, pulses, millets, barley and sorghum as well as oilseeds

including soybean, rapeseed, groundnut and vegetable oils and meals. We source grains and

oilseeds from the domestic market as well as import and export them..

SUGAR

Cargill India originates, stores and supplies raw and plantation white sugar and participates in

export and import depending on the surplus or deficit situation in India. We have suppliers in

the sugar-producing states of Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka and

Andhra Pradesh and serve a wide range of customers.

COTTON

India is the world's second largest producer of cotton and cotton textiles. Cargill Cotton, one

of the world’s largest and oldest cotton businesses, is respected for its experience, expertise,

reliability and commitment to customers. Cargill’s cotton business can be traced back to

1851 when Ralli Brothers was incorporated in Kolkata (formerly Calcutta) and Mumbai

(formerly Bombay). Ralli Brothers was bought over by Cargill in 1981 and in 2002, the name

of the cotton business was changed to Cargill Cotton.

ANIMAL NUTRITION

Cargill is one of the leading suppliers of animal nutrition products worldwide. With our

global expertise in supply chain and risk management, we are able to offer distinctive value

to meet our customers’ needs through high quality feed production and efficient distribution.

Our market-leading brands and on-trend products support the care, growth, and efficiency of

various livestock, aqua and leisure animals.

RISK MANAGEMENT AND FINANCIAL SOLUTION

Cargill’s Trade and Structured Finance expertise in financial markets helps our businesses

manage risks around letters of credit, other cross-border credit and financial risks associated

with trade and commodity finance. We complement the efforts of our businesses by

providing treasury, financial and balance sheet solutions for their customers, suppliers and

service providers.

ENERGY, TRANSPORTATION AND METALS

ETM transparently manages global commodity supply chains for its customers. It offers a

unique combination of expertise to develop physical and financial solutions in the natural

gas, power, coal, petroleum, petrochemicals, ferrous base metals and ocean freight markets.

Cargill Refined Oils

C a r g i l l R e f i n e d O i l s I n d i a i m p o r t s , r e f i n e s , s e l l s a n d

m a r k e t s a w i d e r a n g e o f v e g e t a b l e o i l s a n d f a t s t o

w h o l e s a l e t r a d e , i n d u s t r i a l a n d h o u s e h o l d c o n s u m e r s

a c r o s s I n d i a . W e o w n a n d o p e r a t e t h r e e v e g e t a b l e o i l refineries

located at Paradeep (Orissa), Kandla (Gujarat) and Kurkumbh (Maharastra).

Cargill Refined Oils India has been operating within India since 2005 and employs more

than 750 people.

Major Refining Capabilities

Our refineries are unique in technology and adhere to stringent specifications for

maintenance of product quality, oil stability and food safety. The qualities found within

our operations are unparalleled in India:

Best and latest refining technology, this has been tested and improved across various refinery set-ups within the global Cargill network.

A t e a m t r a i n e d b y i n t e r n a t i o n a l e x p e r t s a n d o n

i n t e r n a t i o n a l p l a t f o r m s r u n t h e s e r e f i n i n g

capab i l i t i e s and i s f u l l y equ ipped t o p roduce t he best product in

the country.

Standa rds o f qua l i t y have been s e t keep ing t he i n t e rna t i ona l and

Ind i an requirements in mind. These standards incorporate the best of both

worlds and meet the highest levels of quality.

Specifications that not just ensure superior quality but also high stability

without addition of preservative chemicals. No oil that does not meet these

specifications is ever packed or shipped.

Hands free treatment with no direct human touch on the product itself due to

f u l l y a u t o m a t e d r e f i n i n g t e c h n o l o g y . T h i s h a s l e d t o a

v e r y c l e a n a n d hygienic environment and a better and safer product.

CARGILL REFINED OIL BRANDS

1. SWEEKAR SUNFLOWER OIL

Sweekar containing High Oleic Sunflower oil, also referred to as HOSUN. The new

Sweekar is a unique blend of 20 percent HOSUN and 80 percent sunflower oil. HOSUN is

produced from sunflower seeds that contain more than three times the amount of MUFA

(Mono Unsaturated Fatty Acids) as compared to regular sunflower oil. HOSUN also

contains higher MUFA than olive oil. MUFA is good fat and is a healthy alternative to

saturated fats: it improves blood lipid profile and so diets with healthy amounts of MUFA

have a host of amazing health benefits. Besides, HOSUN has a very neutral taste and

provides excellent stability. Sweekar is the only sunflower oil brand in India that is

blended with high oleic sunflower oil. It has one of the lowest levels of saturated fats and

this helps in managing cholesterol levels. Sweekar is one of the leading premium

sunflower oil brands in Maharashtra, Rajasthan, Delhi, Orissa, Chhattisgarh and Madhya

Pradesh and is available in pack sizes of 1 liter pouch, 5 liter jar and 15 liter jar.

SWEEKAR

Parent Company Cargill

Category Cooking Oil

Sector Food Products

Tagline/ Slogan Aapke haath mumkin har baat

USP Low cholesterol edible oil

STP

Segment Health conscious adults

Target Group All age groups, middle and high income, health conscious people

Positioning Healthy cooking oil

SWOT Analysis

Strength

1.Dominant player of edible oil

2.Uses health platform

Weakness

1. Limited market penetration in edible oil market.

2.Rural area

3.Limited market penetration in food processing industry

4.Price of product is slightly high that affect the demand

5.Low advertising and visibility

Opportunity

1.Sharp increases in demand of branded oil

2.High market awareness in metropolitan city of branded oil

3.Health conscious people increasing

Threats

1.The treats of low price competition

2.A large number of domestic as well as multinational players

3.Highly competitive industry

Competition

Competitors 1.Sundrop

2.Dhara

3.Nature Fresh

4.Saffola

5.Sampriti

2. Nature Fresh Acti-Lite

Nature fresh acti lite refined oils always ensure that you stay light and active. Now its

verified! With added DMPS ( a permitted antioxidant as ingredient). Labotary results have

shown that food cooked in Nature fresh acti lite refined oils absorbs less oil as compared to

food cooked in ordinary oils. So now indulge in your favorite foods with guilt, knowing that

you have the trusted quality of Cargill. nature fresh is available in refined soya bean and

refined sunflower oil. Nature Fresh Acti-Lite Refined Oils are made using lightness

Integrated Technique (LITE), which ensures that consumer, gets the lightest oil that is easy to

digest. The oil is refined in the technologically advanced processing plants to ensure that the

best attributes of the oil are preserved for your health. Nature Fresh Acti-Lite Refined Oils

now comes with fortified with the goodness of Vitamin A, D and E.

DMPS: Dimethyl polysiloxane

Benefits of DMPS:

· Food remains crunchy for a longer period of time.

· Oil does not burn that fast.

· Lesser lather while frying.

· Retains the original taste.

· Does not let oil evaporate.

· Oil does not change its color even after frying.

3.NatureFresh Purita kachi ghani pure mustard oil

Nature Fresh Purita is renowned for its purity and taste. With a pungency level of 0.27%,

which is higher than the highest AGMARK standard of 0.25%, Nature Fresh Purita is the

best oil for cooking your favorite fried dishes.

Nature Fresh® Purita ensures that your family is full of vigor and health. Mustard is used as

multipurpose oil. So whether it be cooking or pickling, mustard oil is preferred across.

Nature Fresh Purita Pure Mustard Oil is considered as one of the healthiest edible oils. It has

the lowest amount of saturated fatty acids and a high amount of mono mustard and

polyunsaturated fatty acids that are considered good for a healthy heart.

Mustard oil has an ideal ratio, close to 10:1 of Omega-3, which is known to prevent cancer of

the colon and stomach and Omega-6 Fatty Acid composition (Linolic and Alpha Linolic

Acid respectively), which are essential for health and metabolism

4.NatureFresh Oliante

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

Cargill uses “Grade A” seeds to extract the best quality mustard oil, which ensures the

highest level of pungency. Cargill nurtures more than 200 million olive trees in Spain and

brings the goodness that makes cooking food, a truly exotic delight.

Presenting another gem from the Nature Fresh stable – NatureFresh Oliante, the most exotic

olive oil from the land of Antequera in Spain.

In an era where anything and everything is commercialized, the olives of Antequera continue

to preserve their absolute communion with Mother Nature that has existed for centuries.

Nature Fresh Oliante comes from the olive trees over 600years old. The oil takes three years

of patient processing and what you get is the healthiest and most exotic olive oil. The

handpicked olives that go into the making of Nature Fresh™ Oliante remain almost

unaffected by time, true to their age and barely touched by modern technology. Nurtured in

such a land makes Nature Fresh Oliante truly exotic.

With four processing locations in Spain, Cargill produces more than hundred thousands of

olive oil every year, which makes Cargill the largest producer in the world. In fact, it is 5

times bigger than the closest second.

The process that begins at Antequera in Spain, with nurturing of olive trees and ends when

the olive oil is packaged, is fully owned and managed by Cargill.

Each bottle of Nature Fresh Oliante, be it Extra Virgin Olive .

Nature Fresh Oil




Tagline/ Slogan Taste yum, 5 liter fat bhi kam


STP



Positioning For people who want to stay light and active

SWOT Analysis

Strength

1. Dominant player of edible oil


Weakness


2.Rural area




Opportunity




Threats




Competition

Competitors

1.Sundrop

2.Dhara

3.Nature Fresh

4.Saffola

5.Sampriti

5.Gemini™ refined cooking oils

Gemini refined cooking oils retain the freshness of the oil from the time it is packed to the

time it reaches the consumer. This is possible by the unique Freshness Intact Technique- a

unique packaging technology that preserves the benefits of the oil.

Cooking oil starts losing its freshness after refining or during storage and packaging as well

as due to air contact. To get oil that has its freshness intact, only Gemini Refined Cooking

Oil uses FIT technology. Using this technology, the oil after refining is stored under

controlled atmosphere right through packaging. Also when it is packed, a protective shield of

nitrogen is created above the oil, inside the pack.

This ensures that Gemini Refined Oil retains its freshness unlike any other refined oil. When

we cook our food in FIT empowered Gemini Refined Oil, the food remains fresh for longer

period of time· Gemini now comes fortified with the goodness of vitamins A, D and E.

· The level of fortification in Gemini Refined Oils ensures that it fulfills 40% of daily human

requirement of Vitamin A, 16% of Vitamin d and 15 % of Vitamin E. Available in refined

soya bean, sunflower, kardi, groundnut, cottonseed, filtered groundnut, mustard oil and

vanaspati. Gemini is the largest selling edible oil brand in Maharashtra and is a leading brand

in South India.

Based on the Nielsen Company Retail audit data MAT December 2007

Gemini Cooking Oil




Tagline/ Slogan Taazgi jo chalti jaaye


STP



Positioning For fresh and healthy food

SWOT Analysis

Strength



Weakness


2.Rural area




Opportunity




Threats




Competition

Competitors

1.Sundrop

2.Dhara

3.Nature Fresh

4.Saffola

5.Sampriti

6. Rath

With more than 50 years of presence in India, Rath is a heritage vanaspati brand. It is a

trusted name associated with cooking delicious Indian traditional recipes and sweets.

Rath is one of the leading brands in north India and is available in 1 liter pouch, 2 liter

jar and 5 liter jar.

Rath Vanaspati Ghee




Tagline/ Slogan Aap Ka Hath aur Rath ka Swad

USPLeading vanaspati brand in North India and a market leader in the National Capital Region of Delhi

STP



PositioningRath is a trusted name associated with cooking delicious food, purity and goodness

SWOT Analysis

Strength


2.Uses health platform 3.Leading vanaspati brand in North India and a market leader

Weakness


2.Rural area




Opportunity



3. Health conscious people increasing.

Threats




Competition

Competitors

1.Sundrop

2.Dhara

3.Nature Fresh

4.Saffola

5.Sampriti

Three kinds of Nature Fresh™ Oliante to choose from

Each bottle of Nature Fresh™ Oliante, be it Extra Virgin Olive Oil, Pure Olive Oil or

Pomace Olive Oil, brings the magic of olive alive.

• Extra Virgin Olive Oil

Is the highest quality of olive oil. To bring out the delicate flavor in the first press, a panel

of Cargill experts judges the olive for taste, mouth feel and aroma to bring you Nature

Fresh™ Oliante Extra Virgin Olive Oil. As the healthiest cooking medium, Extra Virgin

Olive Oil is preferred for salads, or is served at the table with bread for dipping. It is also

added to soups and stews.

• Pure Olive Oil

Comes from the refining process of olive oil named "lampante" and by adding a

percentage of extra-virgin olive oil. Pure Olive oil is used for all kinds of high heat cooking

such as pasta, lasagna, stir fried vegetables and an array of Indian dishes like aloo Gobi,

chicken curry or even a chicken biryani.

• Pomace Olive Oil

Is a blend of Extra Virgin Olive Oil and refined Pomace oil. Pomace Olive Oil is a very good

baking and frying medium. It is popularly used to make French fries, crispy fried chicken,

baked potatoes and more.

Core competencies

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

Supply chain management

Risk management

Research and development

Risk management

The steady hand of experience

In today’s volatile markets, our customers look for a steady hand of experience to help them

manage their exposure to price risk. For years, Cargill has been identifying, measuring and

managing its own exposure to risk. We also offer this service to our customers.

We work with you closely to measure your exposure to risk and quantify your risk tolerance.

Then we develop and execute sound strategies that diminish the volatility. By managing your

risk as if it were our own, we help you keep costs within an established range and preserve

the potential to capture the upside of an opportunity.

Analytical tools

Cargill has a broad range of analytical tools by which we measure and assess price risk. To

be sure, risk management is one of our company’s core capabilities. Every day, we buy and

move large volumes of commodities from where they are produced to where they are needed.

Our ability to provide risk-managed supply chains makes us a reliable supplier to you.

Supply chain management

Moving goods from farm to factory

Moving massive amounts of raw materials from continent to continent and farm to factory is

both art and science. For more than 100 years, Cargill has been shaping its supply chain

management capabilities. We have few equals in the world in terms of the volume and

breadth of materials we move, the numbers of customers we serve, and the significant

numbers of partners we team with.

Optimizing supply chains

Optimizing supply chains through insightful strategy, inventory management, partner

collaboration, and radical operations planning has resulted in millions of dollars saved for

Cargill customers. In the redesign of a supply chain for a food manufacturer, for example, we

were able to reduce inventories by 28 percent.

Expert execution of our supply chain management strategies and tactics has led to a wide

range of benefits, including:

Improved cost efficiencies

Improved revenues

Faster time to market

Faster product development cycles

Enhanced customer and supplier relationships

Research & development

Scientific expertise that creates distinctive value

Our customers turn to Cargill for our scientific expertise when the challenge is enhancing an

existing product, improving process efficiencies, or uncovering a solution that helps them

launch a first-to-market innovation. Our goal is to leverage Cargill research and

development capabilities to generate distinctive value through new, improved products and

innovative ways to reduce costs or both.

Unsurpassed breadth and depth of technical expertise and resources

Our global team includes more than 1,300 research, development, applications, technical

services and intellectual property specialists working in more than 200 locations. Together,

they provide a spectrum of services encompassing technical service, applications,

development, research, intellectual asset management, and scientific and regulatory affairs.

We can provide the people, capabilities and facilities to solve virtually any technical

challenge across a range of industry segments, including:

Animal and fish feed

Bio industrial products and bio fuels

Food ingredients

Meat and other proteins

Leveraging global knowledge across markets

With R&D centers in Europe and North America and applications and technical services

professionals in locations across the Americas, Europe, the Middle East, Africa, and Asia,

Cargill has a window on the world. Our global presence enables us to stay at the forefront of

emerging customer needs and solutions and bring important new knowledge to you.

In addition, the breadth of our technical expertise enables us to leverage technologies

developed in one area to solve customer challenges in others. For example, our deep

knowledge of animal nutrition is informing solutions for human nutrition.

Our ability to immediately tap our technical expertise across businesses and disciplines

around the world allows us to leverage our best, most relevant knowledge to solve problems

quickly. This access to Cargill’s world of scientific and technical knowledge helps avoid the

time and cost of reinventing — and allows you to move your product to market more

quickly.

Tailoring foods for local tastes and cultures

Cargill’s strong regional presence enables us to provide customers with the applications and

technical services support to create products tailored to local tastes and cultures. Few, if any

companies, can provide both global R&D support and regional solutions that we can.

Understanding both product ingredients and processes

Helping our customers create value includes deep understanding of both product ingredients

and product processes. Our technical teams include experts whose sole focus is effective and

efficient process solutions. Their expertise can help you reduce costs and generate added

value.

Sales & Distribution

Cargill has a network of 1000+ distributors spread across the country with an access

over 1000 towns and reaches 2, 50,000 retail outlets to sell our products. The company has a

strong presence and a proactive stance with respect to modern trade. There are direct selling

agreements in place with key accounts like Reliance Retail, More, Big Bazaar, Spencers, D-

Mart, etc.

The company places a lot of importance to growing business with this fast emerging and

consumer friendly retail format. The company has several initiatives in place to provide value

to this channel including a specialized multi functional team to help cater to the specific

needs of these customers. At the same time, we realize the importance of the high frequency

stores and the value they offer to consumers and manufacturers alike.

Cargill vs. Competitors

With growing quality consciousness and plummeting price differences between

packaged and non- packaged edible oils, the packaged edible oil sector will capture almost

50% of the market share within few years. The packaged edible oil consumption is

only about 20% of the total 12.5 million tonnes domestic consumption.

Due to advancement of packaging technology, the price difference between

packaged and loosely sold oils has significantly come down.

Cargill controls more than 12% of the packaged edible oil market. As a result of the

increasein hea l t h consc iousnes s , consumer s even i n t he sma l l e r t owns a r e

g r adua l l y sh i f t i ng t o packaged edible oils from loosely sold oils.

The packaged edible oil industry is growing at 10 % annually and half of the

market would be controlled by packaged oil manufactures within few years.

Cargill brands vs. other brands

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

Ca rg i l l I nd i a s e l l a round 5 ,00 ,000 t ons o f ed ib l e o i l a yea r , i nc lud ing soya , pa lm , sunflower , groundnut and mustard oils besides hydrogenated fats , to wholesale trade , process food industry and retail customers. Its share is around 4% of the million tonnes of total edible oil sold in the country in a year.

Other brands like Fortune of Adani wilmer Ltd. Having approximately 50% market share in the entire edible oil market. Marico industries with a market share of 13-15% with brands like Saffola is well known brands in the edible oil industry hence gives tough competition to Cargill refined oils.

Consumer Voice – A monthly magazine of consumer interest

F o r t h e f i r s t t i m e i n I n d i a , r e f i n e d s u n f l o w e r o i l b r a n d s h a v e

b e e n t e s t e d b y a n i ndependen t gove rnmen t funded o rgan i za t i on fo r

t he i r f a t t y a c id p ro f i l e and o the r parameters like colour, rancidity etc. to

scientifically assess and pinpoint exactly how healthy each refined oil brand is.

Terms and Terminology Used

1) Beat- The route list containing the names of the retail outlets that are being visited on a

particular day.

2) Super Stockiest -A s t ock i e s t p rov ide s a l oca l de l i ve ry po in t f o r

t hemanufac tu r e r /ma rke t e r . They s t o r e t he p roduc t s ; b r eak bu lk ,

and distribute to the distributors and retailers.

3) Carrying & Forwarding Agents - Carrying & Forwarding agents work on a

commission basis. He acts as a risk reducer for the company as he takes care of

every risk involved in storing of goods in depot.

4) D i s t r ibuter

A d i s t r i bu to r p rov ide s a l oca l de l i ve ry po in t f o r t hemanufac tu r e r /

ma rke t e r . They s t o r e t he p roduc t s , b r eak bu lk , and distribute to the retailers

and wholesalers.

5) Whole sa l er s - A who le sa l e r pu rchase s h i s s t ock o f goods f rom the

distributors and sells them to the retailers.

6) Sales officer - The sales head of a certain territory who manages and co-

ordinates the sales within that particular territory.

7) ISR- Interim Sales Representative Employees of the company and on the payroll

basis. They carry out the sales operation in a particular territory.

8) DSM- Distributor Sales Man . Employees of the company but not on the

payroll of the company. They also carry out the sales operation in a particular territory.

9) CP- Consumer Pack . This includes all the types of packing like 1 ltr pouch,

5 ltr and 15 ltr jar excluding the tin packing’s.

10) BP- Bulk Pack. This includes commercial packing like 15 ltr & 15 kg tins.

1 1 ) P r i m a r y S a l e s -

S a l e s o f g o o d s f r o m t h e d e p o t o f t h e c o m p a n y t o t h e super

stockiest or the distributors.

12) S e c o n d a r y s a l e s

S a l e s o f g o o d s d o n e f r o m t h e d i s t r i b u t o r s o r s u p e r stockist to the

wholesalers or retailers.

13) Productive outlets- Outlets selling products of Cargill India Pvt. Ltd.

14) Unproductive outlets- Outlets not selling products of Cargill India Pvt. Ltd.

15) Sa l e s Ca l l - V i s i t i ng t he r e spec t i ve ou t l e t s on a spec i f i ed bea t t o

t ake t he i r respective orders.

CHAPTER 4

WHAT THE PROJECT IS ALL ABOUT…….

In India the share of Premium oil category is going to increase from 2% to 25% in the next 8

to 10 years, so the Company decided to launch a product (Sweekar) in this category.

The Project was basically divided into 3 stages:

(1) Planning

(2) Implementation

(3) Verification

Steps involved:

Analysis of existing retail outlets

Discovering the uncovered area

Designing an optimum distribution channel for uncovered area

Sustenance of new productive outlets

Tracking of outlets

Analysis of existing outlets

Revising the list of each beat :

The first step towards our objective was to know where actually we stand today. So every

day I have to visit a beat with the respective DSM or sales executive. First we need to check

whether the list is complete or not. One thing was also important, we also needed to add

newly opened outlets in that particular area and eliminate those outlets which have closed

their business or does not sell refined oil anymore. So a revised new beat list was prepared

after visiting all the outlets in East Delhi.

Analysis of revised beat list

After making the revised beat list the total number of outlets and total distribution was found.

Now we have to devise a plan to make the unproductive counters productive through the

analysis of the beat list. Beats with more unproductive calls have to be aimed first.

Understanding the buying behavior and the problems faced by the dsm or sales executive in

converting unproductive counters and then coming up with the solution.

Attempt for converting the unproductive calls

The main objective was to increase the distribution i.e. to increase the total number of

productive outlets. So after the analysis of each beat I have the information of total number

of unproductive outlets in each beat. So there was a each day plan for every dsm and sales

executive. Plan was divided into three s t e p s . F i r s t s t e p w a s t h a t e v e r y

d a y dsm and sales executive h a v e t o a t t e m p t f o r converting the

unproductive counter into productive in their regular beat. For new productive

counters they were given an extra Schemes benefit like power of reducing the rate from

5 Rs to 10 Rs per box, cash display on 5litres jar of Nature Fresh Acti lite and Nature

fresh Sunflower oil and credit facility in case required. And then also if dsm and sales

executive were unable to convert some ou t l e t i n to p roduc t i ve t hen t hey mus t

wr i t e down the name o f t ha t outlets and the problem they faced. For second

step of plan I can go with him and give a brief presentation on Nature Fresh and sweekar.

As the main strength of our product is the quality of product which we offer . So the

brief presentation emphasized more on itsquality and benefits which we offer at affordable

price and how our products differentiate from other competitors. I tried my best in

persuading the shop owner to sell our product. But then also if I was unable to convert that

outlet then there comes step 3rd of our plan. Third plan included a full team visit to that outlet

for making sure that outlet must sell our products.

Discovering the uncovered area

After preparing the revised beat list there was a need to know the uncovered area of east and

west Delhi. So with the help of whole team and roadmap, we highlighted the uncovered

areas which need to be covered. The main area which was discovered as uncovered or

partially covered of East and South Delhi we re Ra t i ya Marg ,Ha r sh V iha r , Bandh

Road ,Sake t , khanpu r , e t c

DESIGNING OPTIMUM DISTRIBUTION NETWORK FOR UNCOVERED AREAS

Listing of outlets

The first step towards designing of optimum distribution network for uncovered areas was to

know how much potential each of these markets have.so in order to know the potential , the

listing of outlets was done.

Restructuring and designing the beat plan

After listing of new outlets a route map was designed. New outlets were divided according to

the designed new beat plan. some old beats were also restructured to include the new outlets.

the basic idea behind preparing the beat plan was to determine the potential of the uncovered

areas. Secondly, how many new outlets we have found and how much more manpower we

will require in order to cover the beat.

Assigning distributer

Now as we know the potential of the uncovered markets, we need to focus on the aspect of

distribution i.e. who will provide regular supply to that area. In order to ensure better supply,

the distributer should be the one who is well versed with that particular area and also have a

good credit worthiness.

Recruitment

In order to cover all the outlets in a particular area certain recruitments were also made so

that we have enough manpower to perform our work in the best manner.

LAUNCHING THE PRODUCT

Now comes the main phase of the project, i.e. launching of the product SWEEKAR. Now

since we have the beat plan, manpower as well as the distribution to ensure regular supply so

a launching exercise was carried out wherein a team of 3-4 members were made. The work

of this team as to visit each outlet and give a brief presentation of the company and its new

product SWEEKAR. Major emphasis in the presentation was given to the quality of our

product, its benefits, and how our product differentiates itself from its competitors.

One person makes sure that the posters and danglers are pasted and hooked well so as to

increase the visibility of the product. Launching exercise by a team has a very much

importance as the first visit of the company to the retail outlet makes the shop owner think

differently and we can easily persuade him to sell our product. A visit by the whole team has

a great impact on the owner of the outlet rather than a single salesman.

In the areas of Dilshad Garden, Dilshad Colony, Mandoli Road we got great success in

terms of productivity at the time of launching of the product. The main reason for our success

in that area was that the distribution of our product was quite well. Therefore success ratio

was high as what we expected.

Mechanism for sustenance of new productive outlets

Now once an outlet starts selling SWEEKAR necessary steps should be taken to make them

sell our product regularly. Following are the steps that can be proved important

Regular visit:

Main aspect for sustenance of new product is the regular sales visit of the sales person or the

dsm. Visits to the retail outlets are generally weekly, thereby continuing a good relation with

a particular outlet

Supply mapping:

If a salesman goes regularly and takes order from x outlet and due to some problem with the

retailer, the supplier does not supply the product. So there must be some proper mechanism

to check , whether the order received is supplied on time or not. The respective dsm must

check from the distributer that the order taken from him is supplied to each beat or not. If not

then he should try to find out the problem and the solution to it.

Aggressive promotion:

If the visibility of our product is increased, then the customer will get to know our product

better. It will create a demand from the consumer side which will force the retailer to sell our

product. Therefore chances for sustenance of the new product go very high. There are various

ways to increase the visibility. Some of the major ones used by the company are tv

commercials, print ads, hoardings, posters, danglers, car screens, etc.

Trade promotion:

The company will have to offer lucrative trade promotion schemes, in order to push the

primary sales. This would include incentives to stockiest. At the retail level, following

measures can be taken:

Schemes such as certain percent off on quantity purchase.

Shops displays.

A 15 ltr tin free with a purchase of Rs 50000 or above.

Apart from this window self displays can be purchased outright.

Consumers promotions:

Some of the consumer promotion methods can be as follow:

Money savers

Free gifts such as pen, pencils, etc on return of oil wrappers

The company can announce “consumer contest” (with proof of purchase) with

attractive prices, supplemented by an advertisement campaign.

TRACKING OF OUTLETS

As per the specific beats, beat list were maintained containing all the outlets. we had to list

all the outlets in a territory selling our product. Therefore outlets were differentiated on the

basis of A, B and C depending on their sales. After launching of the product and displaying it

in the specific outlets, we need to check how many outlets were able to sell our product and

how many of them were not. Even if the outlets who purchased our products were able to sell

whole of the stock or not. Were there any re order purchases also was also checked.

Efforts were made to find out why the other counters were not able to sell our product.

Therefore VERIFICATION was carried out to find out answers to certain questions such as

Whether the new product was properly placed with the retailers and wholesalers?

Whether the retailers were able to sell the product?

Whether the consumers themselves were asking for the product or whether it was

retailers who were making them aware of the product?

CHAPTER 5

Literature Review

An Empirical Model for Product Launches In Industrial Market and Exit under Market

Improbability

SHRI. SURESH TULSHIRAM SALUNKE 1 and R. K. SRIVASTAVA 2

University of Mumbai, IndiaDirector General, Sterling Management Institute

Product Launch

As Product Launch is door to full commercialization-market and operations to start

production, as stated by Robert G. Cooper, 2001.It is the final point at which the organization

can decide to stop the project. For Product success, it is important to lay down well thought

plan of action, which is backed by ample resources, and course of action to face the

unforeseen events.

Drivers for Product Launch :

New products are the key to corporate prosperity, to derive revenue, maintain the bottom line

And market share. It is possible to achieve by using various drivers for Product launching, as

Suggested by Dr. Robert G. Kooper (2001.p 8-10) of Winning Product.

1. The first driver is Advanced Technology, which gives exponential increase in know-how,

helps in giving such a novelty factor to the Product, which has not been dreamed of in

decades; and this driver makes it possible to provide solutions as per customer’s demands.

2. The second driver is changing customers’ needs. Customers expect new Product with

Significant change.

3. Third driver is Shortening Products life cycle, which arises out of increasing pace of

Technological change coupled with change in market demands.

4. Fourth driver in Product launchings is increased world competition, i.e. access to foreign

Markets like never before. At the same time, our domestic market has also become a part of

International market, with competitive pricing.

Product life cycle [PLC]:

Michael E Porter (2004.p 194-196) from Competitive Advantage, states that, PLC in the

frame work of Product innovation ultimately yields a dominant design, where optimal

Product configuration is reached. As the Product design stabilizes, increasingly automated

production methods are employed; and process of innovation takes over, as the dominant

innovation mode lowers the cost. Ultimately innovation of both the types begins to slow

down. Therefore the concept of dematurity has been added to the frame work, to predict the

possibility that, major technological changes can throw the industry back into a fluid state.

Ashok Ganguly [1999.p.164-169, Business-driven R&D elaborates aptly that, a Product life

Cycle depends on science and technology. Product life cycle is decreased from 1960 s-in

As per Michael Grieves, 2006.p.39.2006), & Clayton M. Christensen and Michael E. Raynor,

(2003 Product Lifecycle Management (PLM) is an integrated, information-driven approach

Comprised of people, processes/practices, and technology to all aspects of a Product s life,

from its design through manufacture, deployment and maintenance-culminating in the

Product is removal from service and final disposal. By trading Product information for

wasted time, energy, and material across the entire organization and into the supply chain,

PLM drives the next generation of lean thinking.

Factors affecting in industrial Product development Launch :

Ashok Ganguly [1999.p136-160, Business-driven R&D] suggests that, Industrial Product

Development is most neglected area in India. The First factor is Human factor, which

occupies a pivotal place in industrial R&D and Product Launch. The second factor is

philosophy of business driven R&D evolved from mandate, which has ownership both in

research and in the operating business. It receives complete support and commitment at all

levels of management. Third factor is identification of business priorities, which are

converted in real life of Product Launch and service by & large and is applicable maximum

for five years in the industrial application based on data generated from 25 years by author

Requirement of industrial Product services:

P.Kotler (p.225, 1996) on Marketing advises to consider industrial services aspects

on Product development and launches. For example service reliability and accuracy designed

to exceed customer expectations can be one of the major strategies. Price and performance

time of the Product should be less, for the convenience of customer operations. Three to five

years flexibility in service availability can be considered while designing the

industrial Product service strategy and this conclusion was drawn based on more than 800

industries study data.

Benefits of PLM study:

According to Clayton M.Christensen, (2002) and C.K.Prahlad & M.S.Krishnan, (2008),

In industry, the usefulness of PLM tools is widely accepted for clients to take up the

solutions.

Companies are hesitant in investing in products that don t have documented benefits or easily

Calculable returns. The return on investment for PLM solutions is difficult to calculate as it

Influences the outcomes of products, and these products are themselves influenced by

various factors. However it is made possible by Bearing Industries by creation of data bank,

based on experience and made their own internal specification such as bearing life cycle in

Industrial application-BL-011-2009 & QS 044 of Organization internal specification. These

studies are generated by Bearing Industries by building data bank from 1980 to 2009 & are

useful to identify the Product life cycle and can be used as alarm for exit of Product under

unfavorable conditions for the customers.

The aggressive Product Launch

New Product Launch includes trade show participation (Guiltinan 1999, Hultink et al. 2000),

Product demonstrations (Guiltinan 1999), distribution channel arrangements (Guiltinan 1999,

Hultink et al. 2000, Di Benedetto 1999), soliciting and acting on to customer feedback (Di

Robert G. Cooper.(2001) , and undertaking Product trials (Senese 2002). Product Launch

Aggressiveness refers to, how much effort a firm puts into the Product Launch. It is a

measure of the intensity and complexity of the Launch actions carried out by the company,

while introducing new Product. Launch volume is defined as the total number of actions that

support a Product Launch. Product launches where firms undertake large numbers of actions

and are more aggressive. Launch diversity is defined as the extent to which

a Product Launch is comprised of actions of many different types. New Product launches

consisting of many action types, are more aggressive. Launch duration is defined as the time

elapsed from the start to the end of a sequence of uninterrupted action events.

Setting Product Launch goal: Dr. Robr G. Kooper (2001 p.140 to142) Winning Product

2001) describe three criteria while setting Product Launch goal.

1. The first criteria is prospector businesses, it covers, percentage from new Product,

percentage of sale and ability to open new window for opportunity.

2. The second criterion is analyzer enterprises, which covers ROI (Return on Investment) and

Success rate. Also, it is necessary for an organization to confirm innovation efforts, fits or

Support the overall business strategy.

As suggested by R.K.Srivastava, (2006) & S.T.Salunke (ISSN 2231-1009 p.23-35), in this

Industry Product introductions have always been common and, on average, 10 new brands

were rolled out every year. Secondly, the industry, relatively speaking, is a simple industry;

that is, complicated dynamic factors, such as technological progress, or dynamic price

discrimination, which are commonly employed over the life cycle of a high-tech

durable Product, are absent here. After five years of Industrial application, ball bearings are

upgraded; and to reduce the sales after service as per internal organization, specifications are

created over experience of 35 years in the industrial application - BL-011-2009.As observed

by Roberto Vergant, (2009), by and large people like the change after five years.

Gap Analysis

Based on the Literature survey, lot of research is done on production Launch and exit under

market uncertainty, in automotive segment; however, the bearing industry is yet to develop a

model on industrial market Product Launch and exit based on market conditions.

In India there is need of single model that can demonstrate Product launching strategy & also

can describe discontinuance of the Product at the appropriate market situation.

In the bearing industry, there is very less probability for blue ocean strategy in business

Development and competition is very high. Also investment is very high for development of

Products. Accordingly Dependent variable are sales ,cost of Product, profitability &

investment cost for development new products .The other independent variable-Success of

new Product, Field performance , Hence there is need of research on constructing a model for

selection of new Product at enquiry stage, for creation of global business foot print for Indian

entrepreneurs or stake holders.

Strategic criteria on Product Launch –

Industrial Product services

Life cycle, Return on Investment [ROI],

Target market

Policies for Product Launch –

Out of Launch performance

Return on investment

Field performance

Sustainability in market

Exit period from business

CHAPTER 6

RESEARCH METHODOLOGY

Research is a very important activity which needs to be conducted before launching of a

product .In our project we had done a lot of research before the product was launched. for

example, in our planning phase we were suppose to carry out a research to find out how

much quantity of fortune, saffola, sundrop and other local brands are sold in the market to get

a rough idea as to in which area more of supreme quality oil is consumed and in which area

inferior quality oil is consumed.

For example like the areas which I covered that included consumption of inferior quality oils

include Bandh Road, Ratiya Marg, Saket, harsh vihar, etc.

The areas where high quality premium oil is consumed includes Paschim vihar , Madipur,

Mandoli Road, etc

RESEARCH OBJECTIVE:-

Following was the research work assigned to us:-

1) To analyze customer choices and preferences for a particular brand of refined

sunflower oil.

2) To analyze the competitive scenario of other brands as to determine the quantity

of other oil sold.

3) To collect information about the product, competitors, etc. where the research

was conducted

4) To update the existing as well as finding new outlets which were not listed in the

beat book

5)

Problem Definition:

“Market Research for Premier oil category of Sunflower Oil with detailed analysis and data mining of key competitor brands for positioning of new brand from Cargill.”

Approach to the problem:

Finding solutions to the problems is not an easy task and therefore a lot of research activities

were conducted to find solutions to such queries. For example, certain questions were asked

from the retailers which are as follow:

o Do you know Cargill?

o Do you know SWEEKAR?

o How many brands of edible oil do you have in your shop?

o Which brand of oil has the highest demand?

o What you expect from the company?

o Which type of packaging do you sell more?

Research Design:

A "blueprint" for research, dealing with at least four problems: This questions to study, what

data are relevant, what data to collect, and how to analyze the results was carried out. We

carried out a quantitative research where in an excel sheet was prepared and solutions to such

problems were determined.

Following work was carried out.

Preparing list : a list was prepared which included all the relevant questions as to

which brand of oil the retailer sells and in what quantity?

Which brand of oil is mostly sold in the market?

What are the profit margins?

Collected information : Once the list was prepared, then answers to such questions

were collected to find out in which area a particular brand is mostly sold.

Compilation: the information collected is now compiled and analyzed in the form of

a table to carry out comparison. This was done in order to distinguish the outlets in

the categories of A, B and C.

Reporting: once the compilation was done we were now supposed to report to our

superiors so as to know if we have not left any outlet unattended.

Data Collection:

Data collection was mainly done in two ways:

Using the data which has already been collected by the sales person and the dsm of

that particular area.

Using the data which I have collected by personally visiting each shop in a particular

area with the help of the beat book

Primary Data

Primary data is the first hand information. This information is original in nature. In primary

data collection, we collected the data ourselves using methods such as interviews and

questionnaires. The key point here is that the data we collected is unique to us only and our

research and, until we publish, no one else has access to it. In my project I had collected

primary data by visiting each retail outlet and by getting the survey form filled from them.

Secondary data:

Secondary data is the second hand information which has been collected by some other sales

person or the dsm. The source of collecting secondary data was the beat book where the

information about the outlets which already had been collected by the concerned sales person

and the dsm of that particular area. I used this data to find existing as well as new outlets.

Sample Design:

A procedure was prepared to collect data to obtain a sample from a given population. On the

basis of this data inferences were drawn about the whole market.

Sample Size

The sample size in my research was 30-40 outlets which I was required to cover every day.

However this number varied depending upon the market potential of that particular area. In

these areas 35-40 retailers were chosen and survey form were used to collect the information.

Sampling Technique

Here, sampling is based on non-random sampling wherein we had to visit a specific area and

cover all the listed outlets which was there in beat book.

CHAPTER 8

DATA ANALYSIS AND FINDINGS

This was the main phase of our project wherein we were supposed to collect data from the

areas assigned to us and on the basis of such data inferences were drawn regarding the

quantity and quality of oil sold in a particular market.

Data collected with the help of Customer’s and Consumer’s survey form is shown in the

form of PIE-DIAGRAMS as follows:

In the first phase of my project, I have visited a total of 373 outlets in east and South Delhi.

On the basis of carrying out an analysis, the outlets were classified as very important,

important and neutral. These are shown as below:

(QUANTITY PREFERENCE)

VISIBILITY OUTLETS

Very important 10

Important 94

Neutral 269

outlets

Very important Important Neutral

FINDINGS:

On the basis of quantity preference analysis carried out of 373 outlets, it was found that:

10 outlets out of 373 outlets (2.7%) were found to be those outlets which are very

good i.e. they sell oil and oil products in larger quantity. Some of them are large

retailers or even the wholesalers.

94 outlets out of 373outlets (25.20%) were found to be important outlets. These are

those outlets which carry on their business on an average basis. They generally

include the wholesalers.

269 out of 373 outlets (72.11 %) were found to be outlets of neutral category. These

are those retailers who carry on their business on a very small scale. They generally

sell local brands such as Mahakosh, Panghat, etc.

On the basis of brand preference, analysis was also carried out findings of which are

as follow:

(QUALITY PREFERENCE)

BRANDS PREFERED OUTLETS

FORTUNE 175

NATURE FRESH 80

OTHERS 118

#REF!

CATEGORYVERY GOOD

FINDINGS:

Of all the outlets visited, it was found that:

175 outlets out of 373 (46.91 %) found fortune as the best selling brand as

compared to all other brands.Therfore fortune is considered to be the market

leader.

80 out of 373 (21.44%) gave preference to nature fresh as the second best

selling brand after fortune.

118 out of 373 (31.63%) were those retailers who were mostly givinf

preference to other local brands.

AREAS COVERED CATEGORISATION

CATEGORY PERCENTAGE

VERY GOOD 20%

GOOD 35%

NEUTRAL 55%

PERCENTAGE

VERY GOODGOODNEUTRAL

INFERENCES DRAWN:

From the above table it can be seen that

20% of the outlets were very good which mainly included the areas of khyala

, Paschim Vihar, Raghuveer Nagar ,etc.

35% of the outlets were found to be good which were established in the areas

of Mehrauli, Chattarpur, Bandh road, Khanpur, etc.

The remaining i.e. 55% of the areas were found to be neutral which included

the areas of Saket, Ratiya Marg, Mangal Bazaar, etc

SAMPLE SHEET 1

Date:11th MAY Name of Summer Trainee/SR: VINOD KUMAR

Beat Name: PASCHIM VIHARAreas Covered: JWALAHRI, MULTAN GR,PASCHM VHR,BG 6 AND 7

Shop Name includes name of shop &

landmark/adderss

SAFFOLA SUNDROPFORTUNE(RV

O) NF(RVO)

Visibility

Weekly Weekly Weekly WeeklySale Stock Sale Stock Sale Stock Sale Stock

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

SHARMA STORE (SHOP NO.3 B-2 PASCHIM VHR) 1 1 1 5 1 3 3 2 ISHAKTI STORE (SHOP NO.18 B-2 PASCHIM VHR0 2 2 1 1 NKAMAL FLOOR MILL (SHOP NO.15 B-2 PASCHIM VHR) 2 1 1 1 NM.K. STORE (A-3/271 PASCHIM VIHAR) 2 1 1 1 NMAA SANTOSHI STORE (A-6/472 PASCHIM VHR) 1 1 1 3 3 2 2 IKAPOOR STORE (A-1/88 PASCHIM VIHAR) 2 1 4 2 2 2 IK.K.STORE (A-2 DDA MKT PASCHIM VHR) 1 2 1 2 1 NJAI DURGA STORE (A-2/57 PASCHIM VHR) 1 1 1 4 2 2 1 IUPPAL STORE (A-1 MAIN 1 1 1 1 2 1 1 1 1 N

MKT PASCHIM VHR)KWALITY STORE (A-1 PASCHIM VHR) 1 1 1 3 3 3 2 IKAPOOR STORE (A-7 MAIN MKT PASCHIM VHR) 2 1 3 3 2 2 IDURGA STORE (A-1 LIG FLAT PASCHIM VHR) 1 1 2 2 2 1 NLAXMI STORE (A-1B PASCHIM VHR) 1 1 1 2 1 1 1 N

INFERENCES DRAWN

This is a sample sheet of the work carried out by me in those area where more of premium

quality oil is mostly sold.. This survey was carried out before the actual launch of the

product. In this sheet it can be seen that most of the outlets are of very important and

important category which mainly sell branded products like fortune, saffola, sundrop, etc.

Apart from selling local brands also but in lesser quantity.

SAMPLE SHEET 2

Date:5th may 2012 Name of Summer Trainee/SR: VINOD KUMAR MALBeat Name: BANDH ROAD Areas Covered: BANDH ROAD, HOLI CHOWK

Shop Name includes name of shop & landmark/adderss

SAFFOLA SUNDROPFORTUNE(RVO) NF(RVO)

Visibility

Weekly Weekly Weekly WeeklySale Stock Sale Stock Sale Stock Sale Stock1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

DURGA TRADERS (NEEM CHOWK VEER BAZAAR) 2 2 1SINGH STORE (NEEM CHOWK VEER BAZAAR) 2 1AGGARWAL STORE (C-337 SANGAM VIHAR) 2 1 1 1 NAVINASH STORE (G-392 3 1 1 1 N

SANGAM VIHAR)LAXMI STORE (LAL DORA MKT. SANGAM VIHAR) 3 2 2 1 NJAGDAMBA STORE (C-174 SANGAM VIHAR) 3 1 1 1 NSHYAM TRADERS (596/2 LAL DORA MKT.SANGAM VHR)

10 2 4 5 1 3 N

SANGMESHWAR STORE(596/2 LALDORA MKT.) 1 1 3 1 2 1 NGOYAL STORE (ASTHAL MANDIR ROAD SNGM VHR) 2 1 1 1 N

INFERENCES DRAWN

This is a sample sheet of the work carried out by me in those area where more of inferior

quality oil is mostly sold. This survey was carried out before the actual launch of the product.

In this sheet it can be seen that most of the outlets are of neutral category which mainly sell

local brands that too in lesser quantity.

SAMPLE SHEET 3

Name of Shop

Visibility Stock of Sweekar

Display of

Sweekar

Special Feedback for each shop

Presen

Absent

Stock Given

Off Take(ltr)

Reason for No Stock

Present

Absent

tPaid(P)

Unpaid(UP)

V.K.TRADERS (MAIN MKT MANDOLI ROAD) I P

6PC(1LTR)

2PC(1LTR) UP

ARUN AND CO. (MAIN MKT MANDOLI ROAD) I P

6PC(1LTR)

3PC(1LTR) UP

MITTAL STORE (MAIN MKT MANDOLI ROAD) I P

6PC(1LTR)

2PC(1LTR) UP

DEEPAK STORE (MAIN MKT MANDOLI ROAD) I P

6PC(1LTR)

2PC(1LTR) UP

DGUPTA STORE (MAIN MKT MANDOLI ROAD) VI P

20PC(1LTR)+2PC(5LTR)

5PC(1LTR) UP

JAMUU STORE (MAIN MKT MANDOLI ROAD) I P


5PC(1LTR) P

J.P.ARORA STORE (MAIN MKT MANDOLI ROAD) VI P


6PC(1LTR)+1PC(5LTR

) P

GAUPANSARI STORE (MAIN MKT MANDOLI ROAD) N A

RETAILER DID NOT TAKE THE PRODUCT A

BANSAL SUGAR AGENCY (MAIN MKT MANDOLI ROAD) N A

SMALL SHOP SO SALE NOT EXPECTED A

C.B SUPER STORE (MAIN MKT MANDOLI ROAD) VI P


6PC(1LTR)+1PC(5LTR

) PTARUN K.STORE (MAIN MKT MANDOLI ROAD) N A A

INFERENCES DRAWN

This is a sample sheet after the actual launch of the product SWEEKAR. This

sample sheet shows the actual quantity of goods sold as sample to the retailers.

It also determines whether display amount has been given to them or whether it

was an unpaid display. It can also be seen from the sheet that whether goods

have been sold to them and in what quantity and if not then what are the reasons

for not selling the goods to them.

CHAPTER 8

A. TITLE- “Market research for premier oil category of sunflower oil with detailed

analysis and data mining of key competitor brands for positioning of new brand from

Cargill”

B) The main objective of this project:

To study the consumer buying behavior of SWEEKAR oils in all the

modern trade outlets in DELHI and NCR

To recommend the various strategies and techniques to improve the sales

volume of SWEEKAR oils.

To find out the strength, weakness, opportunity, threats of SWEEKAR oils

and to suggest ways to promote the sell.

To understand the customer satisfaction level of SWEEKAR oils.

To identify the hidden expectations of customers from the SWEEKAR oils

To find awareness of the respondents regarding SWEEKAR oils.

To find out the new target customer for the SWEEKAR oils.

C) Scope of the study:

The main purpose of the research is to understand the customer consumption, perception and

attitude towards SWEEKAR oils of Cargill. This project helps in understanding how

the customer takes the purchasing decision and what the factors that they have

taken into considerations are. The various factors that can affect the purchasing

decision like quality of the product, brand image in the market and regulatory in the

supply etc has analyzed. Th i s w i l l g i ve oppo r tun i t i e s t o r e sea r che r t o ge t t he

b r i e f i dea abou t t he s t udy .

D) Significance of the study

1) Significance for the Industry

A study of the industry plays an important role in recognizing the stand where the

company l i e s i n t he ma rke t . The s t udy a l so i nc ludes va r i ous

o the r a spec t s i nc lud ing t a s t e and preference, desires, wants, requirements

of the consumer

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

2) Significance to the Researcher

Researcher prepares a questionnaire in order to find the responses from the consumer. The

questionnaires were designed on the primary objectives and were of both open ended and

close ended.

For the accomplishment of the project

For suggesting new market strategies

In order to collect the feedback of the consumers.

To find out the new target customer for the SWEEKAR oils.

In order to study the consumer buying behavior of SWEEKAR oils.

For the SWOT analysis of SWEEKAR oils.

In order to understand the customer satisfaction level and the hidden

expectations regarding SWEEKAR oils.

“LIMITATIONS”

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

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

2. Less availability of information about the company and the where about

3. The sample size being taken for drawing a conclusion was too small to get an accurate result

4. The survey has been done in Delhi and NCR thus the psychological condition of other parts may be different from rest

5. During the survey I found that consumers were not interested in answering the question that were asked to them

6. The research is confined to modern trade outlets of Delhi and NCR and does not show a pattern applicable to rest of the country

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

8. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

9. I was also suffering the time limitation which was fixed by the company

10. Consumers were also having less information about various products of the company

11. Lack of visibility of the brand in terms of proper knowledge about the quality of the product also affects the purchasing activity of the consumers. Though the advertisement has been launched recently but it will take some time to stabilize in the minds of the consumers.

12. Excessive price fluctuations in the oil industry

13. Some disputes between the retailers and the distributers were unsolved

14. Excessive dependence on price strategy of competitor market leader in oil segment.

15. Convincing to the retailer in low income residential area was a tough task as they were very less health conscious.

All the above statements are the limitations of the project. Sometimes language

was also a barrier while conversing with the consumers. The study has been

done keeping in mind all these limitations. The project was completed within

the specified period of time. Analyzing and understanding consumer purchasing

power was a big task to accomplish.

ASSUMPTIONS:

1) It has been assumed that sample of about 100 customers represents the whole

of the population.

2) The information given by the customer was unbiased.

SUGGESTIONS OF RETAILERS AND CONSUMERS

Leakage problem should be looked after and the replacement of the

leaked packets should be given to them

The company should reduce the price of their products and increase

the profit margins of the retailers as compared to their competitors.

There should be a proper channel of information wherein any

scheme introduced by the company should be made known to the

retailers at the earliest

Similarly if any scheme is introduced for the consumers then they

should be made aware of this with the help of print advertisement

Such as television if possible

PROBLEMS FACED BY THE RETAILERS

Low margins : most of the retailers complained that they are getting very

low margins as compared to other brands in the same category that they

were selling

Leakage problem : the retailers also complained about the leakage problem

which they were facing for which they were not getting any replacements,

not even the cartons so that they can shift the leaked products to new

cartons so that they can sell them.

Feedback problem : the retailers also complained that they were getting less

feedback from the company, like whenever any scheme is introduced by the

company they are not informed about it at the right time.

Quality problem: the retailers also complained that sometimes the quality

of the product was so low that it became a lot difficult for them to sell the

product.

MRP problems : the retailers also complained that in the days of rising

prices, they have to sell the product at a price which is even lesser than the

price at which they have purchased.

Problems related to new products : they also had the complained that

whenever the company introduces any new product, they are made aware of

this at a very later stage.

LEARNINGS

Managerial capabilities which we had to manage the salesman who accompanied us as well as the shop owners

Convincing capabilities

How sales can be enhanced

Knowledge of how an oil industry works at the ground level

Team management skills

Leadership skills

Analytical approach towards data analysis towards sales

How to increase product visibility

How to carry out daily activities in rigrous pressures

How to cover an untapped market where complete reach was not possible and then sustaining the sales in the specified territory

CHAPTER 9

CONCLUSION

Providing food product is a not everyone cup of tea. You cannot compromise in it and if

you will try for it you will not be able to sustain in the market for a long time.

OIL COMPANIES have to worry to provide that product which is not only fulfilling the

rules and regulation of government but also satisfy the customer. Cargill’s

products do exactly that and that is why it is chosen by CONSUMER VOICE.

CONSUMER VOICE - A government funded voluntary organization

t h a t w o r k s t o w a r d s c o n s u m e r e d u c a t i o n a n d a w a r e n e s s ,

c o n d u c t e d a l abora tory t e s t . A f t e r testing them on all possible

parameters like colour, adulteration, rancidity and fatty acid profile SWEEKAR ,

brands from the house of Cargill, was rated as the best quality and healthiest refined

sunflower oils in the country .

But still it is very tough for SWEEKAR to become no 1 in very near future because o f

t he t yp i ca l m ind s e t o f I nd i an consumer . To ach i eve t h i s pos i t i on Cargill

first wanted to increase its product availability in the market and it did by

t he expans ion o f cove rage a r ea . Now company i s work ing on

adve r t i s emen t s which are telecasted in most of the channels.

Most of the Indian families used oil in their daily food 90% of them use Mustard oil in

curries. But because of change in purchasing power Indian families are also conscious about

their health and now want to use refined oil also to protect their liver. Most of the

companies are trying to do something new and find that thing which help

customer to be healthy and fit. Fo r t h i s Ca rg i l l i s u s ing DMPS (a permitted

antioxidant as ingredient) . L a b results also have shown that food cooked in

SWEEKAR refined sunflower oil; absorb less oil as compared to food cooked in ordinary

oils so these are some key Characteristics of SWEEKAR which make it a better product

than its competitors. It was a very big opportunity for any management student to

work in such a big giant of a very huge industry. The project was excellent and the

learning was more than it was expected. Cargill gave full freedom and ask to perform like a

manager. It was great to get the knowledge how to manage a territory in an industry like

OIL INDUSTRY.

Learning was also valuable because meeting and working with such a big people of industry

itself a big experience. The project was basically based on opening of new outlets but it

consist so many things in it which I learnt like how to manage people? How get

maximum output from the people? And how to make a balance in sales.

SWEEKAR was a very good product and it gave me knowledge that if a

company’s product is good then it do not have to worry for things and competitors. Cargill

gave me understanding that for any OIL INDUSTRY company it is very necessary t h a t

f i r s t i t s h o u l d m a k e i t b a s e w o r k v e r y s t r o n g a n d t h e n i t s h o u l d

g o f o r marketing or advertisement. Cargill’s business strategy is also very good. Like my

project. Cargill is also doing the same project of expansion of new stores in Delhi and NCR

to increase its visibility and sales. It was good to have your product in most of the

because it is known saying in Hindi “JO DIKHTA HAI WO HI BIKTA HAI”

CHAPTER 10

RECOMMENDATIONS

These were the following recommendations which were given to the company.These are as

follows:-

1. Consumers scheme:

Launching consumer’s scheme could be another way of increasing sales like Dalda sale went

up because of the scheme of free bowl so similarly we can come up with other schemes like

scratch card, or a free cook-book etc.

2. Awareness:

Making the costumers aware about the harmful effects of using cheap low quality oils

and highlighting health benefits of branded oils, then consumers will definitely

ask for sweekar oils and not go for any other brand. Overall customers are having delightful

experience and the remaining can be cover being more accountable to their

grievances. In order to make people aware about the product, creative

promotional campaigns, some stalls should be conducted.

3. Product Positioning :

Starting the Advertisement for sweekar oils with much focus on its ingredients & its benefit

for a human being. This way we can capture the market of Saffola which is recommended for

heart patients.

4. Media marketing:

This includes ads on TV aired at prime time shows. Tie up with certain cookery

programmers’ and the cook shown cooking dishes with Gemini oils.TV

Commercial is the most important way to make the people aware about Cargill products.

5. Product Bundling :

To make people aware about other not so popular oil of sweekar.

We can do-

Joint bundling

– 2 products offered for one bundled price.

Leader bundling

– a leader product like Soyabean oil is offered for discount if purchased With a non leader

product.

The Company should also introduce new affordable products for lower segment group.

6. Packaging:

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

7. Pricing

: Organization should make sincere pricing for their core product because pricing is a very

critical and sensitive issue while launching any product or inducing more future in existing

product in such a highly competitive market.

8. Promotion:

Organization should spend more in the process of advertisements, promotion, campaign and

they also have to strengthen their channels of communication with customer needs. The

customers are still not aware of the range of products, so the company must go for heavy

promotion schemes.

9. Relationship Building:

Company should see to it that sales men are paying frequent visits at the modern trade

outlets. They should try to meet the requirement of the customers and the promoter must try

to build a healthy relationship with them.

10. Channel of Distribution:

The company should improve their channel of distribution, so that the problem or the

question of availability does not arise.

CHAPTER 11

BIBLIOGRAPHY

Websites referred:

www.google.com

www.cargill.com

www.ghallabhansali.com

www.bestindiansites.com

www.fundoodata.com

www.wikipedia.com

www.naukrihub.com

www.chillibreeze.com

www.financialexpress.com

www.hemoline.com

Books referred :

Magazines: frontline, outlook, business world

http://www.hemoline.com/

http://www.financialexpress.com/

http://www.chillibreeze.com/

http://www.naukrihub.com/

http://www.wikipedia.com/

http://www.fundoodata.com/

http://www.bestindiansites.com/

http://www.ghallabhansali.com/

http://www.cargill.com/

http://www.google.com/

CHAPTER 12

ANNEXURE 1

This is a summary of certain outlets targeted by me before the actual launch of

the project in East and South Delhi. Before the actual launch of the project, I

carried out a survey to find out how much of the oil like Fortune, saffola,

sundrop, etc are sold in comparison to our own brand. So that we can come to

know what characteristics in the product are we lacking and therefore the

product can be launched accordingly.

Date:1ST MAY 2012 Name of Summer Trainee/SR: VINOD KUMAR MALBeat Name: RATIYA MARG Areas Covered: RATIYA MARG


landmark/adderss


O) NF(RVO)

Visibilit

y


1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

SARASWATI DRY FRUITS (G-8/2 SHOP NO.20) 2 1 1 2 N

RAHEES MASALA (G-8/2 SHOP NO.23) 3 2 3 1 N

LALIT STORE (SHOP NO.25 RATIYA MARG) 3 1

10 3 1 1 I

BALAJI STORE (SHOP NO.36 RATIYA MARG) 1 1 1 5 2 NDOLY GENERAL STORE

(D-1154 RATIYA MARG) 1 2 1 NAJAY GNRL MARG

(SHOP NO.4 RATIYA MARG) 5 3 N

VINOD STORE (D-1134 RATIYA MARG) 2 1 N

RADHASWAMI STORE(SHOP NO.48

RATIYA MRG) 1 2 4 2 2 3 IRAKESH STORE (D-84

RATIYA MARG) 1 1 2 1 NGUPTA DAIRY(SHOP NO.2 RATIYA MARG) 2 1 NNAMAN PROVISION STORE(G-8A/5 RTIYA

MRG) 1 1 NKRISHNA GUPTA GNRL STORE(G8A/10 RTYA

MRG 1 1 2 1 NGOYAL STORE (D-32

RATIYA MARG) 3 2 2 3 6 8 IAGGARWAL STORE (D-

31 RATIYA MARG) 3 1 2 1 2 NGARG STORE (G-11/1

RATIYA MARG) 1 1 2 1 NSHARMA

STORE(G-12/1 RTIYA MARG) 1 1 N

GUPTA G.STORE(G-

12/36A RTIYA MRG) 1 N

ANIL STORE (H-16/190 RATIYA

MARG 5 3 NVANDANA JAIN

STORE(H-16 RATIYA MARG) 5 1 2 2 1 N

Date:8nd MAY 2012 Name of Summer Trainee/SR: VINOD KUMAR MALBeat Name: AAYA NAGAR Areas Covered: MAIN ROAD AAYA NAGAR


landmark/adderss


O) NF(RVO)

Visibility


1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

1 ltr

5 ltr

SINGHAL STORE (MAIN ROAD AAYA NAGAR) 2 1 N

KRISHNA STORE (MAIN ROAD AAYA NAGAR) 1 1 1 1 IAPNA STORE (MAIN ROAD AAYA NAGAR) 4 3 2 IJAIN STORE (MAIN

ROAD AAYA NAGAR) 6 5 4 1 2 IBANSAL STORE (MAIN ROAD AAYA NAGAR) 1 1 1 5 3 N

SHRI RAM STORE (MAIN ROAD AAYA

NAGAR) 1 1 1 NANNAPURNA STORE (MAIN ROAD AAYA

NAGAR) 1 1 1 1 2 1 ITIWARI STORE (MAIN ROAD AAYA NAGAR) 2 1 2 NPOOJA STORE (MAIN ROAD AAYA NAGAR) 2 1 NSUNIL STORE (MAIN ROAD AAYA NAGAR) 3 1 3 2 2 NNEGI STORE (MAIN

ROAD AAYA NAGAR) 1 3 1 2 2 1 5 N

AGGARWAL STORE (MAIN ROAD AAYA

NAGAR) 2 2 1 1 NGOYAL STORE (MAIN ROAD AAYA NAGAR) 1 4 1 3 2 2 I

MOHAN STORE (MAIN ROAD AAYA NAGAR) 1 1 N

KRISHNA STORE (MAIN ROAD AAYA NAGAR) 1 1 1 1 N

YADAV STORE (MAIN ROAD AAYA

NAGAR) 1 1 1 NM.D.STORE (MAIN

ROAD AAYA NAGAR) 1 1 4 2 2 1 I

GUPTA STORE (MAIN ROAD AAYA

NAGAR)SUKHVEER STORE

(MAIN ROAD AAYA NAGAR)

ANNEXURE 2

This is a sample beat list prepared by me for data base collectionthis was prepared after the launch of the product SWEEKAR so as to find out how many stores have received the product and if yes then were they paid for the display or not. Quantity of stock given to them. And if not then what were the reasons for not taking the product.

Name of Shop

Visibility Stock of Sweekar

Display of Sweekar

Special Feedback for each shop

Present

Absent

Stock Given

Off Take(ltr)

Reason for No Stock Present

Absent

Paid(P)

Unpaid(UP)

Cargill Vinod

Documents

independently

local soybean

limited market

nature fresh

nature fresh

premium edible

pure olive

pomace olive