Corporate ProfileLT Overseas to LT Foods Ltd: Small beginnings
to Global Presence When it all began about 30 years ago, nobody
could have even dreamt that the small trading company that came
into being as Lalchand Tirathram Mills could one day be on its way
to become a leading global food company.
1965, Bhikiwind, in a little village in Amritsar (Punjab,
India); Shri Raghunath Arora started a small trading company which
grew from being a commissioning agent to a partnership firm by
1977, as Lalchand Tirathram Rice Mills.
1978: Mr. V.K.Arora joined the family business with his father,
with a clear vision of taking his company to a global level. In
1980, the company started exporting Premium Rice. This was the
first step towards making this vision a reality.
Simultaneously, the company decided to face the challenges in
domestic markets by setting up a modern, state-of-the-art rice
factory in Sonepat, Haryana in 1984. Unorganized players with
inconsistent quality products were crowding the market. In this
scenario, Mr. V K Arora felt the need to promote branded and
packaged products. In line with this vision, the company started
the business of milling, processing and marketing of branded
basmati rice and manufacturing of rice food products in the
domestic and overseas market.
The birth of a Brand
Daawat came into being in the 1980s, and this resulted in a
steep vertical ascent of the companys growth in the 1990s. Further
industry innovations followed with complete streamlining of the
manufacturing process, removal of bottlenecks, and total
modernization of rice manufacturing plant and machinery and its
balancing capacity. Moving ahead of the market, Mr. V.K.Arora
introduced 1kg and 5 kg packs of rice in the market, as per
consumers requirements.
Brand Daawat has over the years taken on the tough competition
in the industry, and has managed to create depth as well as width
for itself, moving at a pace faster than its rivals. Today, Daawat
brand caters to three broad segments Retail, Institutional and
Economy with specific offerings through a range of sub-brands. A
phenomenal 30-fold rise has seen it become a 700 crore company with
over 19 brands. The portfolio includes Daawat, one of the top three
Basmati brands in India and Heritage, another premium basmati. The
companys product portfolio also includes brown rice, white rice,
steamed rice, parboiled rice and organic rice.
The industry recognizes Daawat
To increase the acceptability of LT Overseas products globally,
the company has taken the lead in implementing industry best
manufacturing practices & obtaining internationally acclaimed
certifications. LT Overseas (now LT Foods Ltd) was among the first
few in the rice industry to obtain the ISO 9001-2000 certification.
Presently LT Food has obtained certifications like HACCP, SQF, BRC,
and Organic and EIC.
Footprint across the globe The company has a strong distribution
network in all major basmati consuming cities in India with more
than a hundred distributors in each state. L T Overseas has also
made inroads into more than 50 countries across the globe including
markets like USA, Canada, UK , EU, middle east and Africa.
Another significant initiative of the company has been in the
area of manufacturing and marketing parboiled rice. An ultra modern
rice plant began operations at Mandideep near Bhopal in 2007, and
this will help the company cater to the huge demand for parboiled
rice in the international markets.
To strengthen its presence in the global market, L T Overseas
acquired Kusha Inc in 2007; Kusha Inc has a 42% share in the US
market, giving L T Overseas a combined share of 52% of the US rice
market. This was also the first by an Indian Rice Company.
Today, LT Overseas is ranked among the top 10 food processing
companies in Northern India, and among the top 50 companies by Dun
and Bradstreet 8th Edition of Indias Top 500 companies 2007.
From a Rs. 700 crore company, L T Overseas is poised to become a
Rs. 1500 crore group and a leader in the food products business, in
India, and in the International Markets.
LT Overseas Ltd is now LT Foods Ltd
With company spreading wings all over the globe, acquiring key
markets & strategically developing new products, there was a
corporate need felt to identify with a wider scope .The company
& its present as well as new subsidiaries are also working on
new food related projects & products. All this has led to
strategic realignment of resources & focus giving birth to a
new avatar LT Foods Ltd. Now onwards LT Overseas will be known as
LT Foods Ltd.
VisionTo be a Leading Global Rice Foods CompanyMissionTo deliver
value to the customer, be profitable and establish leadership in
core markets. The company strives towards diversification and
expansion of the product portfolio. To command top of the mind
recall with the consumer by ensuring effective brand promotion
strategies. Invest in research & development activities so that
the company can deliver ever better products and always stay ahead.
Focus on increasing global footprint by venturing into newer
markets and at the same time forge fruitful alliances with entities
operating within the same plane.
Core Values
Promoters
Vijay Kumar Arora Vijay Kumar Arora is the Chairman and Managing
Director of LT Foods Ltd (formerly known as LT Overseas Ltd). He
joined LT Overseas in 1978 after completing his Graduation. He has
also attended the management development program conducted by the
Administrative Staff College, Hyderabad. He has been the promoter
director of the company since its inception. His key
responsibilities include international marketing, strategic
planning, finance and business development.Ashwani AroraAshwani
Arora is a whole time Director of LT Foods Ltd. A commerce
graduate, he has also attended the management development programme
conducted by the Administrative Staff College, Hyderabad. He is a
promoter director of the company since its inception and his key
responsibilities include marketing and brand promotion in the
domestic market.
Surinder AroraSurinder Arora is a whole time director of the
Company. He joined the partnership firm (LCTR) and has been
associated with the Company since its inception. He has vast
experience in procurement, production and plant operations. He is
one of the promoters of LT Foods Ltd and has been the director of
the company since 2000. His key responsibilities include production
and procurement. Mr. Ashok Kumar AroraAshok Kumar Arora is a
President of Punjab Operation. He is graduate in Arts and has been
with this company since 1993. He has 20 year of experience in rice
industry and is presently looking after Punjab unit covering all
the areas i.e. production, distribution & packaging.
MilestonesSince inception LT Foods has believed in delivering
the best. And the endeavours have always been met with numerous
recognitions and awards. A consistent streak of prized metal has
whetted the company's appetite for more. And they stand as a
testimony to the fact that the ongoing efforts will only be
intensified in the future. New standards will be aimed at. And the
bars will be set higher. 2007-08* Staple Distribution Company
launched in domestic market to cater to the demands of modern
retail.* State of the art plant set up in the Mandideep, Bhopal
(MP.)* Acquired a top US Company, Kusha Inc; Kusha's brand, Royal
is among the top 20 US brands: Company's share of the US market
goes upto 52%.2006-07* Inauguration of Silos Complex * Increase in
capacity from 18 MTPH to 27 MTPH2005-06* Awarded Udyog Ratna by PHD
chamber of commerce and industry presented by Shri Bhupinder Singh
Hooda Honble Chief Minister , Haryana for valuable contribution to
Economic Development of Haryana2004-05* India Star Award from India
Institute pf Packaging.* Enhanced the capacity in Bahalgarh unit
from 10TPH to 12 TPH , making the owned capacity to 18
MTPN.2003-04Award from APEDA for export promotion and quality
development of Basmati rice2002-03* Received the right to use APEDA
certification mark Quality products of India for export * Enhanced
the capacity in Bahalgarh unit TPH to 10 TPH , making the total
capacity to 16 MTPH2001-02* Registered and launched the brand
DAAWAT in Canada* Obtained ISO 9000:2000 certification* Obtained
HACCP certification of SQF (Safe Quality Food)20000CM for
comprehensive food safety and Quality management systems2000-01*
Started the processing facility at Bahalgharh Unit of 4 TPH*
Registered and launched the brand DAAWAT in Australia1999-2000*
Recognised as Star Trading House by Government of India* Registered
and launched the brand DAAWAT in Mauritius Saudi Arabia and New
Zealand1998-99Took over the business of Lal Chand Tirath Ram Rice
Mill having capacity of 6 TPH1997-98Awarded APEDA Export award for
outstanding contribution to promotion of agricultural and processed
food products during the year 1996-971995-96* Certificate of merit
was awarded by APEDA for Significant contribution in the export of
India long grain rice * Registered the brand DAAWAT in united
States of America 1994-95Set up own milling
capacity1993-94Converted into a public Limited
Company1990-91Incorporation of our company as a Private limited
company
Products
Daawat
About DaawatLT Foods Ltd. is one of the countrys leading
processor and exporter of packaged rice foods under the flagship
brand DAAWAT. The brand is among the top players in the domestic
branded Basmati Rice markets. . Daawatbrand has been a great
success in international markets as well. Quality based
procurement, state of the art milling plants, product quality and
customer focus are a few things Daawat has always been known
for.
This ensures that Daawat Basmati rice is just perfect in all
aspects of the Basmati Rice with uniformly long grain, pristine
white luster and appetizing aroma. Anticipating the needs of the
consumers the company offers hygienically packaged nutritious rice
in the Super Premium, Premium and Economy category
Daawat Select- Indias Authentic Basmati rice (Available in 1Kg,
2Kg, 5Kg, 10Kg and 20Kg packs) Daawat Authentic Basmati rice; Let
its exquisite aroma fill the air while you simmer it to perfection.
And your family will be lured to the dining table bound by the
spell. Daawat Select Basmati rice is known far and wide for the
magic its aroma creates. Fertilized by clean, snow-fed water from
Himalayas and processed with the state of the art technology, its
uniform, long grains & pristine, white luster never fail to
entice.
Daawat Gold Basmati Rice (Available in 1Kg, 5Kg and 10Kg packs)
Daawat Gold Basmati rice royal long grains that are what defines
Daawat Gold Basmati rice. It is amazingly white luster, the
enchanting aroma and an unforgettable taste. Be it biryani, risotto
or your special lemon bhaat, this extra long-grained rice is bound
to make everything all the more scrumptious. Fertilised by clean,
snow-fed water from the Himalayas and processed extremely
hygienically, it is the most refined basmati youll ever get.
Daawat Super- Indias Finest Basmati Rice (Available in 1/2 Kg,
1Kg, 5Kg, 10Kg, 20 Kg and 25Kg packs) Daawat Super Basmati rice -
Just have spoonful of this wonderful flavorsome rice and you will
know why they say God visits mortals in the form of food. Daawat
Super Basmati Rice boasts of the taste that can transform your
everyday meal into gourmets delight. And to add to it, we take
utmost care while processing to retain its tastes and nutritive
value. All so that every grain becomes incredibly delectable and
every meal, the best you ever had.
Daawat Rozana (Available in 1Kg, 5Kg, 10Kg and 25Kg packs)
Daawat Rozana Basmati rice Celebrate each day with the super
economical, super tasty Rozana Basmati Rice. Basmati rice that fits
perfectly in your budget. Daawat Rozana with its taste, aroma, long
grain and pristine white luster lets you make every meal special.
No wonder it is the first choice of every homemaker. Daawat Devaaya
Basmati Rice (Available in 1Kg, 5Kg and 20Kg packs) Daawat Devaaya
Basmati rice Nurtured in the sun-kissed fertile plains of Northern
India, Daawat Devaaya is polished, graded and passed through colour
sorter machine to give it a distinctive pearly texture. Untouched
by human hands, Daawat Devaaya has been one of the most popular
brands among the masses for its magnificent taste & affordable
price. The product has made a special place in all major modern
retail outlets.
Daawat Chefs Secretz Basmati Rice (Available in 10Kg packs)
Daawat Chefs Secretz Basmati Rice - Nurtured in the sun-kissed
fertile plains of Northern India, Daawat Chefs Secretz Basmati rice
is polished, graded and passed through colour sorter machine to
give it a distinctive pearly texture. Untouched by human hands,
Daawat Chef Secretz has been one of the most popular brands among
the institutional customers. As the name suggests it is one of the
core ingredients of many popular rice recipes served in many
prominent restaurants across India. Daawat Brown Rice (Available in
1/2 Kg and 1Kg packs) Daawat Brown Rice - Daawat Foods Pvt. Ltd has
introduced Brown Rice to augment their existing market and
consumers both nationally and internationally. The product is
available in attractive carton boxes of 1kg and 500 gms . The
product is available in many modern and traditional retail stores.
The secret of launching Daawat Brown Rice lies in its nutritional
value. Brown Rice is the healthier food and is very low in
saturated fat but is fiber enriched. It is known to be a food grain
that is healthy and nutritious for all the age groups.
The unique patented technology that has increased the shelf life
of the Daawat Brown Rice to 1 year vis--vis 6 month of ordinary
Brown Rice. When compared to other ordinary brown rice Daawat Brown
Rice not only cooks faster but also makes tastier foods. It can be
used in all the white rice dishes like pulavs and biryanis and
cooks in the same time as the white rice i.e. 15-18 mins. Daawat
Brown Rice also does not require soaking as in ordinary brown
basmati rice.
Advertising
Daawat Basmati Rice is a huge favorite across 35 countries.
Great work of art have always been the topic of dinner
conversations.
As passionately as you create every dish.
Daawat Select Basmati Rice .
The ingredient of finest recipes and engrossing dinner table
conversations.
Great aroma, great test, great texture.
Daawat Brown Rice.
Daawat Gold birayani rice.
Daawat Select Basmati Rice .
Fresh new look, same great taste.
Indian Subsidiaries:-
Daawat Foods (P) Limited
The wholly owned subsidiary of LT Foods Ltd (formerly known as
LT Overseas Ltd) was set up with state of art technology, milling
unit in Mandideep, Bhopal, for production of parboiled rice. Rice
processed here will cater to the institutions and requirement of
Middle East market as well. Your company has made investment of Rs.
23.50 crores in this subsidiaries.
Nature Bio Foods Limited The company recognized that organic
food is future of the world and in the same direction, company
initiated steps few years back. For the same, the wholly owned
subsidiary of the company was incorporated to cater the need of
organic market which is approximately a market of 22 billion dollar
world wide and growing with the peace of 10%.
Staple Distribution Company Ltd. (www.stapledistribution.com)
Looking at the potential and boom in retail business, Staple
Distribution Company, a wholly owned subsidiary of the company has
been incorporated during the year to play and establish itself as a
backend player for Modern retail.
LT International Limited LT International Ltd., a subsidiary of
the company is engaged in trading of varied merchandise.
Four Ps of Marketing - Product, Price, Promotion, PlacementThe
Four Ps Of MarketingMarketing has traditionally been segmented into
four separate areas called the Four Ps of Marketing. The 4 Ps of
marketing are product, price, promotion, and placement:A formal
approach to this customer-focused marketing is known as SIVA
(Solution, Information, Value, Access). This system is basically
the four Ps renamed and reworded to provide a customer focus. The
SIVA Model provides a demand/customer centric version alternative
to the well-known 4Ps supply side model (product, price, place,
promotion) of marketing management.ProductSolution
PromotionInformation
PriceValue
PlacementAccess
1. Product: Product marketing deals with the consumer's needs
and wants and how product specifications can satisfy those needs
and wants. Product marketing can deal with a whole array of issues
such as product size, color, and look and feel of the packaging.
Often, first impressions are important, especially if you are
marketing a product that sells on store shelves. You would want
your product to stand out or for the consumer to want to choose
your product over the others on the shelf.2. Price: Price deals
with supply and demand, or how much a consumer is willing to pay
for a product or service. It also includes decisions on discounts
and special offers. Pricing is not as simple as it might seem. In
some situations, a lower price will not necessarily mean that more
will be sold as the price level could also influence the perceived
quality of a product. For example, affluent consumers may expect a
premium product to cost more and, so, may not purchase it if the
price is cheap. Pricing often affects the consumer's perception of
the attractiveness of a product.3. Promotion: Promotion deals with
the actual selling, advertising, or publicity of the product; it
entails your communications with your customers and trying to
convince or persuade them to purchase your products or services.
This could be done through such things as television commercials,
magazine ads, direct mailings to residences or businesses, and
billboards.4. Placement: Placement has to do with the availability
of your product. You want your product to be visible at the precise
moment that a consumer is willing to purchase such a product, be it
through an actual need or an impulse buy. Products can reach the
consumer through multiple ways, including through retail outlets or
mail order. Not every consumer shops the same way and product
placement is the art of getting the product to the right consumer
at the right time.
RESEARCH METHODOLOGYFor any fmcg company to have efficient
distribution channel needs to have satisfied intermediaries, so
that they hold with company products and provide them to end user.
Thus I selected my research objective as:
RESEARCH OBJECTIVES
Research Objectives are as under: To identify the Marketing
Strategy of Daawat Rice. To know the Consumer Behavior towards
product. To identify the area of service in which company needs to
Improve? To help the Company in designing proper strategies for
rural area. To know the price of the product. To know the
positioning of Daawat Rice in the market. To know the promotional
Strategies. To know the advertising strategies
research design
Purpose of study: - DescriptiveThe study focuses on the
satisfaction level for different products. As well as on other
parameter's such as Commission, Delivery mechanism, Sales Force,
Credit Period. etc. Degree of research question crystallization: -
Exploratory studyAs per my objective of the research, the research
questions would try to find out the current situation in the market
regarding the satisfaction level. Moreover, the hypothesis is not
pre-defined here, but it would be define during the study. Here
research problem is also general.Method of data collection: -
Interrogation & Personal InterviewBased on my initial
observation, I have prepared a questionnaire to collect the
response from retailers and whole sellers as primary data.
Versatility of the questionnaire will help to cover almost all
related factors impacting the satisfaction of the target sample.
Interrogation takes less time than observation and gives
information that is more purposeful
Research environment: Field study. Survey is the main part of
the study and primary data collection. So that the study will be
carried out in field, I have gone to the market and interviewing
retailer's and Wholeseller's in the area of Sagar.
DATA COLLECTION & DESIGNData source: Primary sourceTo
satisfy the objective of the research it is necessary to get the
response from the respondents, which act as primary source of data.
I have collected Primary data by personally surveying Retailer's
& Wholeseller's in the sampling area specified.
Approach: Interview (Personal Contact)Instrument: Questionnaire
Questionnaires Designing: It is the most crucial part of any market
research. I have taken a due care in designing the Questionnaire
for my research. I have meet more than 50 retailers during my
training period in order to learn the Order taking Mechanism, POP
Displays, Competitive Products, Retailers Attitude towards sales
force etc. Even from Area Sales Manager I identified various
Parameters to be listed in my questionnaire's have taken utmost
care in deciding right question, correct sequence, what should be
wording of each & layout of questionnaire as a whole.
Type of Questionnaire: Structured Non DisguisedI have arranged
the questions in a specific order to get the facts and the
interviewer be asked to response strictly in accordance with a
pre-arranged order. The objective of the survey was disclosed every
time before getting the response from the respondent . Type of
Question: Close Ended Number of questions: 50
SAMPLING PLAN
Sampling Area:SagarSample Population: Customers, Retailer's and
wholesalers of Sagar Area.Sample Size: 50Method Of Data Collection
: QuestionnaireSampling technique : Convenience Sampling
LIMITATIONS
1. Limited Time available for interviewing the respondent. As a
result of this it was not possible to gather full information about
the respondent.1. Some time the problem which I face is language
problem for which I have to make them understood.1. The time
constraint face in my project might have affected the comprehensive
of its findings.1. Some time the retailers & customer do not
respond rightly to the questionnaire.1. Sample size was very small
as compare to the population of Sagar city.1. People did not give
full response and they are bias in some personal questions.
QUESTIONNAIRE Name
:----------------------------------------------Address:----------------------------------------------Contact
No. :----------------------------------------------Q.1 Which Rice
Brand do you use?(a) LT Foods(b) KRBLc) Kohinoor(d) REI AgroQ.2 You
purchase the above brand because of the?(a) Price(b) Quality(c)
Packaging(d) OthersQ3. You buy the Daawat Rice on basis of ?(a) On
youre one (b) Advised buy the friends (c) Advertisement(d)
Demonstration of the ProductQ4. Taste of this Rice is?(a) Excellent
(b) Good c) Better (d) Same as otherQ5. What is view about
packaging?(a) Highly Satisfactory(b) Satisfactory(c) Not
SatisfactoryQ6. Do you get any, Discount or other schemes while
purchasing the
products?--------------------------------------------------------------------------------------------Q7.
Are you aware of any sales promotion
schemes?---------------------------------Q8. Why are you using this
Brand?(a) Cheap (b) Tasty (c) Brand Image (d) AllQ9. Offer your
suggestion to the dealer?
-------------------------------------------------------------------------------------------Date:
SignatureCERTIFICATE
DATE: __________
The project report titled MARKETING STRATEGIES OF DAAWAT RICE in
Sagar City Prepared by HARISH VISHWAKARMA (MBA 1ST Sem), under the
guidance and supervision of MR. ASHISH TIWARI (Lecturer of MBA
Deptt., SVNIT) for the partial fulfillment of the degree of Master
of Business Administration is satisfactory in respect of :-
Comments By Supervisor Head of Deptt. Examiner1. Contents and
presentation of the subject matter2. Language3. Embodies the
original work of the candidate.4. Submission within due date
Signature of Examiner Signature of Supervisor
Signature of H.O.D.DECLARATION BY CANDIDATE
I declare that the project report on MARKETING STRATEGIES OF
DAAWAT RICE , in Sagar City is my own work, conduct under the
supervision of of MR. ASHISH TIWARI (Lecturer of MBA Deptt., SVNIT)
affiliated by Dr. Hari Singh Gour University, Sagar (M.P.).To the
best of my knowledge the report does not contain any work which has
been submitted for the award of any degree, anywhere.
Signature of the Candidate
HARISH VISHWAKARMAMBA 1st SEM.
ACKNOWLEDGMENT
I would like to pay my sincere thanks to Dr. Pramesh Gautam Head
of the MBA Dept., SVNIT. Sagar for providing me the opportunity of
doing the project report. I would to express my deep sense of
gratitude to Mr. Ashish Tiwari, Lecturer for his valuable guidance,
advises, Cooperation & Constant encouragement during the
project preparation. He is very supporting and without his help I
would not have completed my project report successfully.I express
my heartful thanks to Miss. Preeti Shukla, Miss. Neha Dubey &
Mr. Chaitanya Kaushikya and to the staff of SVNIT, Parents and
friends for their kind support and suggestion.I am very thankful to
retailer and customer whom I had approached for collection of
necessary data and who give their valuable time and comments, which
were the inputs for my survey.
Date:
Place: Harish Vishwakarma MBA 1ST Sem.
PREFACEThe project report has an objective to get the MBA
student familiar with real life business situation and gives an
opportunity to the student of understand the theoretical concepts
of marketing and finance in practical way.In todays world Consumer
is the King consumer test and preference go alone way in the actual
sales of the product. Every research work has to deal with various
people in concern organization and each of them have their own
opinion and thinking about various topics.The main aim of the
survey report was to determine the Marketing Strategies of Daawat
Rice in Sagar City.I tried my best to express the report through
satisfactional representation, graphs, pie diagrams etc. and it
helped me to enhance my knowledge I am extremely happy to place
before our esteemed teachers.