SHYAM JVL SUBMITTED PROJECT.docx

SUMMER TRAINING PROJECT REPORT

ON

“CONSUMER BUYING BEHAVIOUR OF EDIBLE OIL IN RURAL AND URBAN AREA”

AT

JVL Agro industries ltd. Varanasi

under the guidance of :

Faculty mentor: Prof. R.K.Barman FMS,BHU

Company mentor : Mr O.P.Dubey (HOD MARKETING) JVL AGRO INDUSTRIES LTD VARANASI

Submitted by : Maneesh Kumar Pandey,

Enrolment No.317987,FMS,BHU

ACKNOWLEDGEMENT

I would like to express my heartfelt gratitude toward Manager Marketing-Mr O.P

Dubey of the JVL Agro Ltd. Varanasi, who gave me permission to do my Summer Training

Project in maketing under his guidance. Also I would like to convey my sincere thanks to

Mr. Y. V Singh(Manager HR) who supported me in acquiring practical knowledge

throughout guiding me in my project.

I would also like to thank my faculty member Prof.R.K. Barman for his keen interest,

valuable guidance, inspiration, immense zeal for hard work and positive outlook towards

the subject. His intellect, persuasiveness and insistence on a good work were a guiding

light in the darkness of my ignorance.

I would also like to express my sincere thanks to administrative personnel who have

helped me in carrying out my summer training. Lastly, I would like thank all the persons

who have helped me directly or indirectly in completing my project successfully.

Maneesh Kumar Pandey

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PREFACE

A project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. The study can deal with small or big issues in any division of an organization. It can be case study where a problem has been dealt with, through the process of management. The essential equipment of a project is that, it should contain scientific collection of data, analysis and interpretation of data leading to a valid conclusion.

Summer Training is an essential part in MBA curriculum. It enables the student to share the real experience in the corporate world. My summer training is in JVL Agro Industries Ltd., Varanasi, Uttar Pradesh for the period of eight weeks.

The topic of my project is “Consumer Buying Behaviour of edible oil in rural area”

I hope this study will contribute to the organization.

Table of contents

1. Executive summary………………….52. Industry profile………………………..7

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3. Company profile……………………...174. Research Objective………………….355. Research methodology…………….. 376. Data Analysis…………………………387. Findings…………………………....….62

8. Suggestions…………………….……63

9. Bibliographies………………..………64

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EXECUTIVE SUMMARY

In early nineties, there was low brand specification at the time of purchase,

meaning many consumers simply asked for a “Cooking Oil” and did not specify

a particular brand. There was no awareness among people regarding the effect of

cooking oil on their health. By the name cooking oil customer only means that he

needs oil in which he can cook. The Jhoola cooking oil, for instance, plugged the

need for a product that was simply, ‘healthy for the heart’. Advertising over the

years (since the early 1990s, to be precise) dwelt on what regular edible oils did

to the vital organ - build cholesterol that is - eventually damaging the heart.

NEED OF THE STUDY:

Indian edible oil demand grew steadily at 4.5 CGAR over the last decade and is projected at16.2mn MT for 2010-11.This growth was spearheaded by the per capita consumption. Improvement attributed to increase in income levels and living standards.

However India’s current per capita consumption level (14kg/year for 2010-11compared with 13.3kg in 2009-10) is lower than the global average (24kg/year). The Indian oil market continuous to be under-penetration but positive macro and demographic fundamental will support and enhance demand growth.

Palm, soybean and mustard oil are the three most consumed Indian edible oils with respect to volumes, having a 46% and 14% share respectively in total oil consumption 2010.

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Given the fact that Indian consumers are price sensitive with different preferences these Oil varieties are expected to continue to account for the country’s bulk edible oil consumption.

There exists an ever-widening gap between demand-supply of edible oil, owing to limited oil seed availability and a shift in land use for growing other crops in India. This gap was bridged by crops in India. Imports, accounting for around 45-50% of the total oil consumed. However in the first half 2010-11, edible oil imports were at a three-year low owing to an improvement in Indian oilseed production.

Further, a higher dependence on imported oil is projected due to domestic supply constraints and the cost competitiveness of imported oil. Refined and crude palm oil (CPO) accounted for a significant portion of Indian edible oil imports owing to relatively low prices and sufficient availability. Palm oil is expected to dominate imports in the near-to medium-term.

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INDUSTRY PROFILE

India accounts for 9.3 percent of world oilseed production. It has the world’s

fourth largest edible oil economy. Yet, about 43 percent of edible oil

available in India is imported. In 1999 India ranked as the world’s largest

importer of edible oils, displacing China. The bulk of edible oil India

imports under the Open General License (OGL) are RBD Palmolein of

Malaysian and Indonesian origin.

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

of which are small, unlike the bigger refiners. The small ones are unable to

import huge quantities of crude either due to their low capacity or lack of

financial resources and may be forced to close down or sell out to the bigger

ones in the foreseeable future.

The total import of edible oils during the period from November 1998 to

October 1999 totaled 4.4 million tones valued at more than Rs. 9000 crores.

That was against a demand –supply gap of 1.4 million tones in 1998-99.

Imports have therefore deluged the market.

The import of relined palm oil was put under OGL (Open general License)

in March 1994. Other edible oils were put under OGL in April 1995 (when

an item is brought under OGL, it means that the item can be imported

without seeking any approval).

Originally, there was no discrimination between refined and non refined

edible oil as far as import duty concerned. The duty on both was 65 percent.

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Duty was the slashed to 30 percent for both, then to 20 percent in 1996 and

15 percent in 1999-2000 budgets.

On December 30, 1999 a differential duty structure was introduced. Duty on

refined oil was fixed at 27.5 percent (25 percent plus 10 percent surcharge)

while that on crude was retained at 16.5 percent (15 percent plus 10 percent

surcharge) But only actual users (as opposed to traders) are allowed to avail

of this reduced duty on crude oil. Traders are nevertheless allowed to import

crude at the reduced duty but only to sell to actual users on a high seas basis.

This requires that the actual users fills in the import documents (and pays

the reduced duty) but leaves the importing process to the trader.

In most parts of the world, the import duty on oilseeds is lower than that on

oils. But, in India it is higher 40 percent. That is why no import of oilseeds

of oil bearing material has taken place in India. The industry wants the duty

to be lowered from the present 40 percent to 5 percent.

Edible oils prices in the Indian market have crashed due to large imports by

multinational trading houses see table.

Oilseeds and edible oils are two of the most sensitive essential commodities.

India is one of the largest producers of oilseeds in the world and this sector

occupies an important position in the agricultural economy and accounting

for the estimated production of 28.21 million tonnes of nine cultivated

oilseeds during the year 2007-08.

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IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S

ECONOMY

Oilseeds and edible oils are two of the most sensitive essential commodities.

India is one of the largest producers of oilseeds in the world and this sector

occupies an important position in the agricultural economy and accounting

for the estimated production of 25.14 million tonnes of nine cultivated

oilseeds during the year 2003-2004. India contributes about 8-9% of the

world oilseeds production. Export of oil meals, oilseeds and minor oils has

increased from 2.28, million tones in the financial years 2003-2004. In terms

of value, realization has gone up from Rs.2653 crores to Rs.5447 crores.

India accounted for about 6.4% of world oil meal export.

India is fortunate in having a wide range of oilseeds crops grown in its

Different agro climate zones. Groundnuts, mustard/rapeseed, sesame,

safflower, linseed, Niger seed/ castor are the major traditionally oilseeds.

Soya been and sunflower have also assumed importance in recent years.

Coconut is most important amongst the plantation crops. Efforts are being

made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in

addition to Kerala and Andaman and Nicobar Islands. Among the non-

conventional oils, rice bran oil and cottonseed oil are the most important. In

additional, oilseeds of tree and forest origin, which grow mostly in tribal

inhabited areas, are also a significant source of oils.

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YEARS-WISE EDIBLE OILS IMPORTS

The domestic prices of various edible oils are largely correlated. Palm oil, being the cheapest oil, impacts the price movement of other oils. Palm, soya and rapeseed (mustard) together account for 73% of edible oil consumption in India, with palm oil accounting for 44% of total consumption. Market share of soya & palm oils have gained significantly over the years, due to increased access to imports. The strong growth of soya and palm oil consumption reflects Indian consumers’ sensitivity to prices.

Non-packaged oils are estimated to account for nearly 50% of consumption in both urban and rural markets. However, the development of the retail sector in India, backed by rising income levels, has provided an opportunity to sell branded packs especially in the urban markets. The branded segment is growing at 20% annually with sunflowers and soy oils leading the market.

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EDIBLE OILCONSUMPTION

VEGETABLE OIL

India is the third largest producer of oil seeds in the world. Oil seeds, although occupying only 10 percent of the country’s total cultivated land, play a dominant role in India economy. A very wide range of oilseeds including mustard, groundnut, sunflower, sesame, rapeseed safflower, Niger, soya bean, linseed and castor, packaging plays a very vital role preventing such quality deterioration of oils and scope for the project.

Plant capacity: 16.00 MT/Day

Plant & machinery: Rs. 39 lacs

Working capital: Rs. 681 Lacs

T.C.I: Rs. 886 Lacs.

Return: 66.99%

Breakeven: 74.00%

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PALM OIL

Over the last three decades or so palm oil has made aggressive in road into the world market for oils and fats. It is now a close second behind soybean oil in terms of world production. The predictions that very soon palm oil may overtake soya bean oil as the world’s largest source of edible oils. Though palm oil is the world’s second largest in terms of production, for many years now it is already the leader in the export trade. The world demand for edible oil is expected to witness further growth but also an expansion in per capita intake. Every year, the demand is going to grow by more than 3 million tones. This provides very good scope for new investment.

Plant capacity: 24.0 MT/Day

Plant & machinery: Rs. 102.00 Lakhs.

Working capital: -T.C.I: Rs. 368.00 Lakhs.

Return: 43.79%

Breakeven: 47.7%

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EDIBLE OIL INDUSTRY – CURRENT SCENARIO

DEMAND SCENARIO:

Indian edible oil demand witnessed a4.5% CAGR over the last decade and is projected at 16.2 mn MT for 2010-11. India has an important role to play in the global edible markets, accounting for10.2% of the consumption share, 7% of oilseeds production share, 5% of edible oil production share and 13%of global edible oil imports share for oil year 2009-10

Oil production share and 13.6% of global. According to USDA estimates, India is the World’s third-largest edible oil consumer (after China and the EU), expected to account for 11% of the world’s demand for edible oil and 16% of global imports in 2010-11.

DOMESTIC DEMAND OF EDIBLE OILS

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CONSUMPTION SENERIO: Indian edible oil consumption is varied in preference across regions, owing to

taste and availability. Going by volumes, palm, soya bean and mustard/rapeseed are India’s three major edible oils and cumulatively account for 75% of the total demand. While India produces mustard oil almost entirely, soya bean oil is imported in significant quantities (about45-50%). Palm oil is imported entirely in its crude form for port-based refineries, while a certain quantity is also imported in its refined form.

Owing to consumer cost economics and taste preferences, these three edible oil varieties are expected to dominate the consumption mix. Therefore, companies with an exposure to these oil types stand to benefit. Given the inherent price volatility, participants with a diverse presence in all edible oil categories will benefit than participants focused on a single oil variety, owing to flexibility in modifying

Product portfolios in line with market realities. As per industry data, about 31% of urban households and about 9% of rural households consume branded edible oils with the national average at around 16%. This represents a significant untapped opportunity with a potential to grow to USD 13.5 bn by2015.

CONSUMPTION OF DOMESTIC EDIBLE OIL

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BRANDED OIL SALES:

Owing to a large number of unorganized participants in India’s edible oil market, the share of branded product sales remained low, while low-income remained low, while low-income consumers opted for cheaper grades of oil in loose forms.

According to industry data, 31% of urban households and 9% of rural households consume. Branded edible oils compared with a national average of 16%.Given the low branded oils market penetration, rising affluence levels and Indian consumers becoming quality-conscious. There is significant growth expected in the branded segment. Among the major edible oils consumed, palm oil is still traded and sold mostly in loose form with packaged sales contributing 15%-20% of total sales. On the other hand, sunflower and soya oil have a high. Proportion of sales. On the other hand, sunflower and packed sales at around 70% and 55% of total sales respectively.

INDIA OPPRTUNITY:

The Indian market represents significant opportunity for edible oil players owing to a Growing, population, income growth, low per capita consumption, low penetration and the fact that edible oils are a necessary input in the diet for most Indian consumers. Per capita consumption: The Indian annual per capita consumption grew steadily from 4 kg in the 1970s to 10.2 kg in the late 1990s to 13.5-14 kg in2010-11. However, it is still below the

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2010-11. however, it is still below the global average of around 24 kg, signaling high growth industry potential.

PALM OIL: THE NEXT BIG OPPURTINUTY.

Soy bean and rapeseed crop output hardly growing; palm oil emerged as the answer to India’s edible oil consumption. The share of palm oil in India’s consumption is expected to increase from 31% in2007 to 46% in 2011 due to the following reasons: Easy availability from Malaysia and Indonesia, cheaper alternative which suits the price-conscious Indian consumer and zero duties on CPO.

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COMPANY PROFILE

JVL AGRO INDUSTRIES LTD VARANASI

JVL Agro Industries Limited,

Formally known as Jhunjhunwala Vanaspati Limited, incorporated in the year 1989, manufactures hydrogenated vegetable oil (Vanaspati Ghee) and refined oils, at its manufacturing facility in Varanasi, Uttar Pradesh

located in North India. What started as a modest unit, with a production capacity of 25 MT/day is today the single largest manufacturing company of hydrogenated vegetable oil in India producing over 300 MT/day. The name of the company was changed from Jhunjhunwala Vanaspati Limited to JVL Agro Industries Limited on 21.10.2008.

The brand name ‘Jhoola’ is synonymous with branded oil and ghee in India. With a vision of commitment to unparallel quality & complete customer satisfaction the brand, JHOOLA has made its own way in the heart and minds of millions of customers all over the

country. The Company is having a strong marketing network in U.P., Bihar, Bengal and Assam.

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Incorporated as a modest manufacturer of hydrogenated vegetable oil or vanaspati ghee at 25 tons per day, JVL Agro has grown to be the largest single unit manufacturer of vanaspati in India. We use a modern mechanical physical process technique instead of a chemical synthesis technique to bring our customers the best and healthiest quality of branded hydrogenated vegetable and refined oil. This stringent attention to quality, hygiene, safety and customer satisfaction brought us an ISO 9001-2000 accreditation, making us one of the first organizations in this industry to receive this certification.

We are headquartered in Varanasi with satellite offices in Alwar, Kolkata, Mumbai, Delhi and Singapore. Our vanaspati manufacturing unit in Jaunpur (Uttar Pradesh) and Pahleja (Bihar), along with our mustard oil manufacturing unit in Alwar (Rajasthan) constitute our domestic and international presence.

We are listed on the Bombay Stock Exchange (BSE) and Kanpur Stock Exchange in India.

Date of Establishment: 1989.

Revenue: 489.076 (USD in Millions)

Market Cap: 2013.9096 (Rs. in Millions)

CorporateAddress:Jhunjhunwala,Bhawan,Nati Imli,Varanasi-221001,UttarPradeshwww.jhoola.com

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MANAGEMENT DETAILS:

Chairperson: - D N Jhunjhunwala

MD: - S N Jhunjhunwala

Directors: - Adarsh Jhunjhunwala, Alka Khemka, D N Jhunjhunwala, D

N Jhunjhunwala, H L Agrawal, H L Agrawal, Harsh Agarwal, Kahayan Lai Goenka, Kanhaiya Lal Goenka, Mahesh Kedia, Rohit Kumar Jaiswal, S K Dikshit, S N Jhunjhunwala, S K Dikshit, S N Jhunjhunwala, Shyam Poddar, Sunil Kumar Tripathi

Business Operation:-Consumer Food.

Background:-

JVL Agro Industries was formerly known as Jhunjhunwala Vanaspati. Jhunjhunwala Vanaspati, incorporated in the year 1989, manufactures hydrogenated vegetable oil (Vanaspati Ghee) and refined oils, at its manufacturing facility at Varanasi in Uttar Pradesh. What started as a modest unit, with a production capacity of 25 MT per day is today the single largest manufacturing company of hydrogenated vegetable oil.

Financials Total Income: - Rs. 22054.8 Million (year ending

Mar 2011)

Net Profit - Rs. 500.2 Million (year ending Mar 2011)

Company Secretary:-Rohit Kumar Jaiswal

Bankers Auditors:-Garg & Co

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Competitive Edge:

JVL Agro is committed to delivering high quality products to guarantee complete customer satisfaction. For over 20 years, our brand, Jhool, has been used by housewives in kitchens across the country as a brand they depend on for their family. This is our greatest strength.

The road ahead integrates our reach across the country with the goodwill we have, our experience, our recognition and our alliances.

IMPORTANT ASPECTS OF JVL

We possess a product basket extending from vanaspati to various refined oils.

We have a leadership position across two of India’s most densely populated states.

Our brand is visible and attractive. We possess a scale that is economical. We provide enhanced value to all our stakeholders. Our quality assurance, guaranteed by the ISO 9001-2000 certification. We are in sync with our customers wherever they are.

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R & D:

Our business model extends backwards into plantations on the one hand and agro-food products on the other, thus setting the foundation for an agro food conglomerate in the years to come.

We have installed a 3 MW Cogen power plant for capting use of low cost power generation for our Naupur unit and extracted steam being used for processing. This reduces a further processing cost of the unit with substantial margin.

This not only help us in reducing the processing cost but also maintain regular production schedule even in the power break down period.

ACHIVEMENTS AND AWARDS:

Being a pioneer in the field, the company’s brand Jhoola was recently awarded “Globoil Gold" award, 2006 as the fastest growing Vanaspati Brand in India by Glob oil India.

Emerging company of the year 2007. Awarded by Glob oil. Mr. S.N.Jhunjhunwala selected as global man of the year 2008 by the award committed of global India.

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Vision:

To delight the consumer through a complete vegetable oils solution, through continuous research and development in healthier oil varieties,

leading to a single-stop convenience.

Mission:

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We expect to extend our leadership from saturated fats to the entire vegetable oil segment in the first stage and then to agro-based premium

food products thereafter, from one region in India to a global

manufacturing and marketing presence.

PRODUCTS:

Vanasapati (Hydrogenated oil) Refined oils (Palm and soya) and

mustard oil.

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IDENTITY:

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Promoted by Mr. D.N Jhunjhunwala in1989; commenced operation through the establishment of 25 MT/day hydrogenated vegetable oil unit.

ASSETS:

Operations carried out at three state-of-the –art manufacturing facilities in utter Pradesh (Varanasi), Rajasthan (Alwar) and Bihar (Dehri –on-sone).A new plant being proposed for Haldia in 2011-12.

RECOGNITION:

Recognized as the fastest growing brand in 2006 and emerging company of 2007 by Globoil India ;( Managing Director) honored as globoil Man of the year 2008 for his industry contribution.

PRESENCE:

Headquartered in Varanasi (Utter Pradesh), India, with offices in Delhi, Mumbai and Kolkata and a subsidiary in Singapore .The Company also acquired additional land at Haldia for further expansion.

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MARKETS:

Products available across North, Central, NorthEast India, covering 18 states and two Union Territories.

LISTING:

Equity shares listed on National Stock Exchange, Bombay Stock Exchange. Delhi Stock Exchange and Utter Pradesh Stock Exachange. Stock split from one share to share of Rs.10 each into 10 shares of Rs. 1 each.

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MILESTONE AND ACHEIVEMENT

1990:

Commenced production with a 25 TDP capacity.

1993:

Achieved 100 TDP productions at Varanasi.

1995:

Switched vanaspati processing from chemical to modern mechanical technology.

1999:

Installed a 60 TDP unit for refined oil at Jaunpur, introducing crude soya bean and palm olien oil.

2000:

Increased vanaspati production capacity to 200 TDP.

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2005:

Introduced a fractionation unit of 2oo TDP capacity.

2006:

Acquired Rajasthan- based mustered oil seed- crushing and refining plant.

Invested in Adamjee Extraction, Sri Lanka, to import saturated fats under the Jhoola brand.

Product sales in the states of U.P. Bihar, Jharkhand, Madhya Pradesh, Uttaranchal and Chhattisgarh.

2007:

Emerged as the first Uttar Pradesh vanaspati manufacturer to commission a 3-MW power plant.

Formed a wholly-owned Singapore subsidiary under JVL overseas Pte Ltd.

Introduced products in the northeastern states.

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2008:

Commissioned an edible oil refinery/saturated fats unit in Bihar Initiated de- oiled cake export. Commenced production of a new refinery in Uttar Pradesh, plant supplied by Alfa Laval with the latest technology.

2009:

Commenced commercial production from the Bihar unit.

Introduced products in Jammu and Kashmir, Himachal Pradesh and West Bengal.

2010:

Commenced development of the Haldia unit with 1,200 TDP refining capacity,capative power plant and oleochemical section.

2011:

Become listed in National stock exchange

Global India Legend 2011 award received by the chairman of JVL AGRO INDUSTRIES LTD.

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STRATEGIC CORPORATE PILLARS OF COMPANY

Experience: JVL possesses over two decades of rich experience in the

vegetable oil industry.

Brand: The Jhoola brand is available across 18 Indian states and two

union territories, enjoying a market-leading share in central India’s edible oil market.

Product range: JVL provides an extensive range of vegetable oils

comprising refined (palm oil and soya oil), saturated fats (vanaspati) and mustard oil.

Relationships: JVL enjoying long-term relationship with plantation

owner in Indonesia and Malaysia ensuring timely and cost-effective raw material delivery.

Logistics: JVL positioning as northern and central India’s largest crude

oil importer translates into better bargaining and logistics competitiveness.

Scale: JVLS saturated fats manufacturing unit is the single –largest in

India, resulting in optimized production and conversion costs.

Integration: JVL is integrated from plantation access to product

packaging (18,00,000 HDPE jars per annum and 42,00,000 tins per annum as well as manufacturing container handles and caps).

Energy: JVL invested in a 3-MW captive power plant in its Varanasi

facility,

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Quality:

JVL is certified for the prestigious ISO 9001-2008.

Distribution:

JVL enjoys an entrenched presence in North India through a distribution network comprising over 30 depots, over 5,200 dealers and thousands of retail outlets.

Customization:

JVL caters to the needs of various Indian consumers through various packages ranging from 200 ml to 15 liters to 15 kg.

Customer-centric:

JVL offers customers a superior price-value proposition in terms of product diversity, customization and service.

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AREA OF SURVEY VARANASI

The art and culture of Varanasi is unique. It is the rich cultural tradition of Varanasi that makes it the cultural capital of India. A combination of archaeology, mythology, geography, art and history makes Varanasi a great center of Indian culture. Though Varanasi is associated mainly with Hinduism and Buddhism but one can find glimpse of many religious beliefs, types of worship and religious institutions at Varanasi. It is amazing to see the primitive worship cults being practiced at Varanasi.

Varanasi had population of 3,682,194 of which male and female were 1,928,641 and 1,753,553 respective including 1, 599,260 total urban population. Due to time and cost constraints only 150 respondents were selected for getting the primary data by direct interview method. To study the market trends and brand preferences of edible oils, primary data is collected by using a detailed questionnaire which was administered to a small sample of 150 retailers as well as commercial shops selected on the basis of convenience sampling method. The study has been carried out in the urban areas of Varanasi city.

COMPETITOR

Mayur: Refine vegetable oil (Active Light)

GRSL: Refine palm olein oil

Bawarchi: Queen Gold.

Nature Fresh: Refined soya bean oil.

Shaffola soya refined oil.

Fortune: Refined soya bean oil.

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Ruchi: Refined soya bean oil.

Ruchi: Ruchi gold refined palm olein oil.

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PURCHASING POWER OF VARANASI URBAN

SOYA BEAN50%

SUNFLOWER25%

GROUNDNUT10%

PALM15%

OILS

SOYA BEANSUNFLOWERGROUNDNUTPALM

INTERPRETATION:

In Varanasi rural refined oil is mostly used by the consumers they are house wife’s, Soya bean is 50% used followed by sunflower 25% and Groundnut oil 10% which is used by high class family and palm oil 15% preferred by low class family.

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OBJECTIVES OF THE STUDY

The study is mainly done to figure out the following objectives –

To identify the consumer preference about edible oil.

To identify the factors which influence consumers buying decision for edible oil.

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SCOPE OF THE STUDY

The study helps the JVL Ago industries ltd. to be a dynamic, innovative, and internationally competitive, research based industry producing high qualitative edible oil products, and promoting its which benefit consumers and significantly contribute to the sustainable growth of Indian Edible oil industry.

IMPORTANCE OF THE STUDY

In early nineties, there was low brand specification at the time of purchase,

meaning many consumers simply asked for a “Cooking Oil” and did not

specify a particular brand. There was no awareness among people regarding

the effect of cooking oil on their health. By the name cooking oil customer

only means that he needs oil in which he can cook. The Jhoola cooking oil,

for instance, plugged the need for a product that was simply, ‘healthy for the

heart’. Advertising over the years (since the early 1990s, to be precise) dwelt

on what regular edible oils did to the vital organ - build cholesterol that is -

eventually damaging the heart.

The different suggestions suggested after conducting the study will effectively help in troubleshooting.

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RESEARCH METHODOLOGY

Research Design: Exploratory.

Population- consumers in Varanasi

Sampling Unit- Individual Customer.

Sample Size- 75

Sampling Technique-Non Probability Convenience sampling.

Tools- Questionnaire.

Duration - 8 weeks.(3rd may to 3rd july,2013) Data collection:Primary Data’s were collected through Observations, Interview and Schedules; while, Secondary Data’s were collected through Internet websites, Leaflets and Journals.

Data Analysis and Interpretation: Percentage and Graphical methods

LIMITATIONS:The survey and research done is based on information available and provided by the retailers and wholesalers and distributors. They may not be true in answering the questions. Presence of error on available data and information’s. Unavailability of financial assistance. There was some communication gap between interviewer and respondent due to language barrier Time was, of course a big constraint.

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DATA ANALYSIS

For my project I have taken 75 sample from rural area . The survey conducted in rural area is given followed by urban area. In rural area majority of people using vegetable oil compared to the refined oil so my survey in rural area concentrated on vegetable oil and people in urban area using refined oil, so in urban area my survey is based on refined oil.

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Qu. Do you know about the brand Jhoola?

yes88%

no12%

yesno

INTERPRETATION: From the above diagram it is clear that Jhoola is a well known brand in rural area.

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Q. Which brand of edible oil do you use?

rath23%

jhoola33%

fortune21%

others9%

ruchi15%

rath

jhoola

fortune

others

ruchi

INTERPRETATION:

In the survey it was found that Jhoola is mostly used brand of vegetable oil followed by dalda and fortune. People using jhoola brand saying that the quality of this brand is very good as compared to others. The items made of jhoola can be kept for a long time.

Q. From where did you get the information about the brand you are using?

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advertisement8%

retailer58%

friends & relatives22%

others11%

advertisementretailerfriends & relativesothers

INTERPRETATION:

In rural area people are not much aware about any product and which brand retailer give them they know about that product. Most people say that they get the information from the retailer.Some knows from friends & neighbors and only 9 % people know about by advertisement in rural areas.

Q. On what basis do you select edible oil?

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INTERPRETATION:

As per the chart consumer give their highest preference to price

while selecting the edible oil. People living in rural areas wanted quality, taste, health all but on a reasonable low price.

Q. Which type of packaging do you prefer?

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price42%

quality12%

advertisement2%

package design

3%

avalibility26%

health con-

sciousness9%

taste6%

pricequalityadvertisementpackage designavalibilityhealth consciousnesstaste

bottle36%

jar12%

pouch52% bottle

jarpouch

INTERPRETATION:

From the above chart we can see that people mostly prefer pouch type

packaging. Once people bought oil in bottle or jar then after using the oil the refill it with the oil in pouch because the cost of oil in pouch is lower than that of bottle and jar.

Q. Which package size do you prefer?

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200 ml5%

500 ml24%

1 litre46%

2 litre16%

5 litter9%

200 ml500 ml1 litre2 litre5 litter

INTERPRETATION:

In rural area people are more interested to buy oil in package size of one litre followed by 500 ml. people are not buying anything in bulk so they prefer to buy small size pack.

Q. If you are given any offer on purchase of oil then which type of offer would you like to get?

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cash discount56%

free gift44%

cash discountfree gift

INTERPRETATION:

As per the opinion of the respondents 56% people prefer cash discount

while purchasing the edible oil.

Q. How often do you purchase oil?

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weekly57%

monthly43%

dailyweeklymonthly

INTERPRETATION:

Majority of people in rural area buy oil weekly. They buy product in less amount so they go and buy oil weekly.

Q. Who makes the decision of purchasing oil in your house?

46

husband41%

wife29%

both30%

husbandwifeboth

INTERPRETATION:

From the above chart it is clear that in rural area husband and wife both are responsible for selecting the oil.

Q. Have you seen any advertisement of any edible oil company?

47

yes7%

no93%

yesno

INTERPRETATION:

From chart we can say that only 7% people have seen the

advertisement of any oil brand.

Q. where have you seen that advertisement?

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TV 12%

newspaper24%

retailer shop49%

other15%

TV newspaperretailer shopother

INTERPRETATION:

From the above pie chart it is clear that majority of people have seen the advertisement at the retailer shop.

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Qu. Do you know about the brand Jhoola?

50

yes19%

no81%

yesno

INTERPRETATION: From the above diagram it is clear that Jhoola is not a well known brand in urbanarea.Jhoola brand needed promotion in urban areas.

Q. Which brand of edible oil do you use?

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mahakosh15%

jhoola

3%

fortune26%

naturfrsh15%

stayfit17%

saffola9%

others8%

jemini8%

mahakoshjhoolafortunenaturfrshstayfitsaffolaothersjemini

INTERPRETATION:

In the survey it was found that fortune is mostly used brand of sdible oil followed by stayfit and mahakosh. They say that anyone can get fortune oil at every shop. The quality and packaging of fortune attract people.

Q. How do you know about the brand you are using?

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advertisement46%

retailer23%

friends & relatives26%

others5%

advertisementretailerfriends & relativesothers

INTERPRETATION:

From the data it is clear that most people know about the brand through advertisement in urban area followed by friends & neighbors then retailer. Any new product come into the market then retailer tell them about the products and suggest them to use once.

Q. On what basis do you select edible oil?

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INTERPRETATION:

As per the chart consumer give their highest preference to advertisement and 21 people says about health consciousness while selecting the edible oil and only 8% people select the oil on the basis of taste, they say taste of every oil is nearly the same.

Q. Which type of packaging do you prefer?

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price9%

quality14%

advertisement30%

package design

8%

avalibility13%

health consciousness21%

taste6%

pricequalityadvertisementpackage designavalibilityhealth consciousnesstaste

bottle44%

jar15%

pouch41%

bottlejarpouch

INTERPRETATION:

From the above chart we can see that people give nearly equal preference to bottle and pouch packaging. 44% people like bottle while 41% people like pouch.

Q. Which package size do you prefer?

55

200 ml2%

500 ml9%

1 litre37%

2 litre29%

5 litter23%

200 ml500 ml1 litre2 litre5 litter

INTERPRETATION:

In urban area people are more interested to buy oil in package size of one litre also followed by 2 litre and 5 litre.

Q. If you are given any offer on purchase of oil then which type of offer would you like to get?

56

cash discount24%

free gift76%

cash discountfree gift

INTERPRETATION:

As per the opinion of the respondents 76% people prefer free gift compared to cash discount while purchasing the edible oil.

Q. How often do you purchase oil?

57

twice in a month24%

weekly33%

monthly43%

twice in a monthweeklymonthly

INTERPRETATION:

People in urban area prefer to buy edible oil on monthly basis. They made the budget of one month then buy the thing for the whole month. About one third of population buy oil weekly.

Q. Who makes the decision of purchasing oil in your house?

58

husband16%

wife53%

both22%

children9%

husbandwifebothchildren

INTERPRETATION:

From the above chart it is clear that in urban area mostly housewife decide which brand edible oil they use and in 9% families children decide which brand to use.

Q. Have you seen any advertisement of any edible oil company?

59

yes94%

no6%

yesno

INTERPRETATION:

From chart we can say that 96% people have seen the advertisement of any oil brand. People in urban area are aware about the advertisement of edible oil company.

Q. where have you seen that advertisement?

60

TV 53%

newspaper21%

retailer shop17%

other9%

TV newspaperretailer shopother

INTERPRETATION:

From the above pie chart it is clear that majority of people have seen the advertisement on the TV followed by newspaper then retailer shop.

FINDINGS

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From this project we can conclude that

Soyabean oil is the most preferred type of edible oil.

Fortune is most preferred brand of edible oil.

People are mostly aware about the brands which are advertised on television,radio, hoardings, newspapers etc.

Most of respondents give their first priority to the quality of edible oil while purchasing edible oil.

Respondents mostly prefer oil that are accompanied with some type of offers/schemes.

Respondents mostly prefer pouch type of packaging

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RECOMMENDATION & SUGGESTIONS

1. JVL Agro. should emphasize on improving the quality of its products, inferring from the consumers complains about this aspect.

2. It should organize rigorous advertising campaigns in order to make general mass aware of its products.

3. Scheme implementation strategy shall be made efficient to ensure scheme implementation effectively.

4. Aggressive marketing strategy should be adopted by JVL. Agro in order to enforce its products in the market.

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BIBLOGRAPHY

BOOK SUPPORT-

JVL AGRO INDUSTEIES LTD ANNUAL REPORT 2010-11

YEARLY MAGAZINE OF JVL.

BOOK OF MARKETING BY PHLIP KOTLER

WEB SUPPORT –

From the company website, (www.jvlagro.com).

Search engine GOOGLE.

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