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 program 2011-13

Submitted by: Saurabh Jindal FC11168 Corporate Mentor Amit Raju Regional sales manager Cargill India pvt.ltd Faculty Mentor Deepika Saxena

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: Seal/Stamp of the Organization

Divya Jindal
Coordinator Apeejay School Of Management New Delhi

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunate e n o u g h t o g e t s u p p o r t f r o m l a r g e n u m b e r o f p e r s o n s t o w h o m I s h a l l always remain grateful. W i t h i m m e n s e p l e a s u r e I w o u l d l i k e t o e x p r e s s o u r s i n c e r e t h a n k s a n d 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

India is the largest importer of edible oil and the third largest c o n s u m e r ( 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 r o m M a l a ys i a a n d I n d o n e s i a . P a l m o i l i m p o r t e d i n t o I n d i a i s u s e d i n v a r i o u s forms- consumed directly as palm oil after refining used in v a n a s p a t i , f o r b l e n d i n g w i t h o t h e r v e g e t a b l e o i l s , r a w o i l a n d k e r n e l oils for industrial purposes. Per Capita consumption is around 10 kg/year. P a l m a n d Soya bean oil account for half of the total edible oil consumption in India followed by Mustard and Groundnut Oil. 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 v a n a s p a t i i n t h e t o t a l e d i b l e o i l m a r k e 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 Palm oil Peanut Sunflower Soya bean oil Rapeseed Cotton PERCENTAGE 38 14 8 21 13 6

List of Edible Oil players in India

Fortune Sweekar Nature fresh Gemini Dalda Saffola Parachute Sundrop R R Primo Dhara Panghat Tilsona Figaro Shalimars Classic Basmati Palm Gold Active Ruchi Gold Adaani Wilmar Limited Cargill India Pvt. Ltd., USA

Bunge India Pvt. Ltd, USA Merico Ltd, India Agro Tech Foods Ltd (Conagra Foods) RR Omerbhoy Pvt. Ltd. Dhara Co. Ltd NDDB Campus, Anand Mawana Sugars Ltd. Recon Oil Industries Private Ltd. Consumer Marketing (India) Private Ltd. Shalimar Agro Tech Pvt.

Sarda Agro Oil Ltd. Ruchi Infrastructure Ltd.

In edible oil The Adani-Wilmer owned Fortune brand is Indias 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. M a r i c o I n d u s t r i e s h a v e a m a r k e t share of 13 % with brands like Saffol a, etc

Consumption Pattern of Edible Oils in India

India is a vast country and inhabitants of several of its regions h a v e developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West 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 i x t u r e . V a n a s p a t i h a s a n i m p o r t a n t r o l e i n o u r e d i b l e o i l e c o n o m y . 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. All oils have been rendered practicallyc 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 s e n t i a l l y b l a n d , p r o c e s s e d e d i b l e o i l s . A b o u t 6 0 7 0 % p r e d o m i n a n t l y groundnut and mustard seeds are used to make nonrefined 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 semiorganized 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 v a r i e t y o f c o n t a i n e r s , o f t e n w i t h i n 2 - 3 d a ys o f p r o d u c t i o n . These local crushers will produce between half and two MTs per m o n t h . 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 54.99 61.46 46.46 71.40 72.46 83.16 73.70 86.54 81.24 79.74 80.65

2000-20001 20001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

184.40 206.63 148.39 251.86 243.54 279.79 242.89 297.55 305.24 310.32 318.76

Consumption of edible oils(from domestic and import sources 96.76 104.68 90.29 124.30 117.89 126.04 115.87 142.62 157.43 165.92 171.23

Source:
(i) Production of oilseeds: Ministry of agriculture ( i i ) N e t a v a i l a b i l i t y a n d c o n s u m p t i o n o f e d i b l e o i l s : D i r e c t o r a t e o f Vana spati, 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 Universitys 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. McDonalds 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 Cargills earnings surpass US $1 billion for the first time in its history. Cargill adds to its chocolate portfolio with the acquisition of Peters Chocolate, a brand dating from the 1880s, and OCG Cacao, a European maker of industrial chocolate. Cargills 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 Australia China India Indonesia Japan Malaysia Pakistan South korea Philippines Singapore

AFRICA South Africa Zimbabwe Ghana Malawi Kenya Tanzania Morocco Nigeria Cote dlvoire

MIDDLE EAST Poland Portugal Romania Russian Federation Spain Switzerland Sweden Australia Belgium Denmark Finland

France Germany Greece Hungaria

CENTRAL AMERICA

SOUTH AMERICA

Bonaire Costa Rica Dominican Republic Guatemala Honduras Nicaragua

Argentina Bolivia Brazil Chile Columbia Paraguay

Peru

CARGILL IN INDIA
Cargills 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

Headquarters Capital or Major City GOSC Offices Oil Refinery Regional Office Animal Nutrition Oil/Food Depot Sugar Refinery

Cargill India Pvt. Ltd. 14th Floor, Building 9 A, DLF Cyber City, Phase III, Gurgaon-122002 (Haryana) Tel: +91 124 2358939, 409 0489 Fax: +91 124 2358977

DISRTRIBUTION CHANNEL OF CARGILL INDIA PRIVATE LTD.

MANUFACTURER

(C AND F) DEPOT

SUPER STOKIST

DISTRIBUTER

WHOLESALE

RETAILER

CUSTOMER

The endusers of the products are: households and institut 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. T h i s c h a i n h e l p s t o t a p e v e n t h e s m a l l r e t a i l e r s / t r a d e r s a n d t h u s 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 Cargills 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.

Cargills 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 worlds largest and oldest cotton businesses, is respected for its experience, expertise, reliability and commitment to customers. Cargills 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 Cargills 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

Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils and fats to wholesale trade, industrial and household consumers 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 team trained by international experts and on international platforms run these refining

c a p a b i l i t i e s a n d i s f u l l y e q u i p p e d t o p r o d u c e t h e best product in the country. Standards of quality have been set keeping the international and I n d i a n 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 fully automated refining technology. This has led to 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 Category Sector Tagline/ Slogan Cargill Cooking Oil Food Products Aapke haath mumkin har baat

USP

Low cholesterol edible oil STP

Segment Target Group Positioning

Health conscious adults All age groups, middle and high income, health conscious people Healthy cooking oil SWOT Analysis 1.Dominant player of edible oil

Strength

2.Uses health platform 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

Weakness

5.Low advertising and visibility 1.Sharp increases in demand of branded oil 2.High market awareness in metropolitan city of branded oil

Opportunity

3.Health conscious people increasing 1.The treats of low price competition 2.A large number of domestic as well as multinational players

Threats

3.Highly competitive industry Competition 1.Sundrop 2.Dhara

Competitors

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 Parent Company Category Sector Cargill Cooking Oil Food Products

Tagline/ Slogan USP

Taste yum, 5 liter fat bhi kam Low cholesterol edible oil STP

Segment Target Group Positioning

Health conscious adults All age groups, middle and high income, health conscious people For people who want to stay light and active SWOT Analysis 1. Dominant player of edible oil

Strength

2.Uses health platform 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

Weakness

5.Low advertising and visibility 1.Sharp increases in demand of branded oil 2.High market awareness in metropolitan city of branded oil

Opportunity

3.Health conscious people increasing 1.The treats of low price competition 2.A large number of domestic as well as multinational players

Threats

3.Highly competitive industry 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 Parent Company Category Sector Tagline/ Slogan USP Cargill Cooking Oil Food Products Taazgi jo chalti jaaye Low cholesterol edible oil STP Segment Target Group Positioning Health conscious adults All age groups, middle and high income, health conscious people For fresh and healthy food SWOT Analysis 1. Dominant player of edible oil Strength 2.Uses health platform 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 Weakness Opportunity 5.Low advertising and visibility 1.Sharp increases in demand of branded oil

2.High market awareness in metropolitan city of branded oil 3.Health conscious people increasing 1.The treats of low price competition 2.A large number of domestic as well as multinational players Threats 3.Highly competitive industry Competition 1.Sundrop 2.Dhara 3.Nature Fresh 4.Saffola Competitors 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 Parent Company Category Sector Tagline/ Slogan Cargill Cooking Oil Food Products Aap Ka Hath aur Rath ka Swad Leading vanaspati brand in North India and a market leader in the National Capital Region of Delhi STP Segment Target Group Health conscious adults All age groups, middle and high income, health conscious people Rath is a trusted name associated with cooking delicious food, purity and goodness SWOT Analysis 1. Dominant player of edible oil Strength 2.Uses health platform 3.Leading vanaspati brand in North India and a market leader 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 Weakness Opportunity 5.Low advertising and visibility 1.Sharp increases in demand of branded oil

USP

Positioning

2.High market awareness in metropolitan city of branded oil 3. Health conscious people increasing. 1.The treats of low price competition 2.A large number of domestic as well as multinational players Threats 3.Highly competitive industry Competition 1.Sundrop 2.Dhara 3.Nature Fresh 4.Saffola Competitors 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 todays 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 companys 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 Cargills 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

Cargills 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, DMart, 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 increasei n h e a l t h c o n s c i o u s n e s s , c o n s u m e r s e v e n i n t h e s m a l l e r t o w n s a r e g r a d u a l l y s h i f t i n g 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. C a r g i l l I n d i a s e l l a r o u n d 5 , 0 0 , 0 0 0 t o n s o f e d i b l e o i l a ye a r , i n c l u d i n g s o ya , p a l m , 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

For the first time in India, refined sunflower oil brands have be e n t e s t e d b y a n independent government funded organization for their f a t t y a c i d p r o f i l e a n d o t h e 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 o c k i e s t p r o v i d e s a l o c a l d e l i v e r y p o i n t f o r t h e m a n u f a c t u r e r / m a r k e t e r . T h e y s t o r e t h e p r o d u c t s ; b r e a k b u l k , a n d distri bute 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 i b u t e r A distributor provides a local delivery point for themanufacturer/marke t e r . T h e y s t o r e t h e p r o d u c t s , b r e a k b u l k , a n d distribute to the retailers and wholesalers.

5) Wholesalers- A wholesaler purchases his stock of goods from the distributors and sells them to the retailers.

6) Sales officer- The sales head of a certain territory who manages and coordinates 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 packings.

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

11) Primary SalesS 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) Sales Call- Visiting the respective outlets on a specified beat to t a k e t h e 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 5 litres 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 s o m e o u t l e t i n t o p r o d u c t i v e t h e n t h e y m u s t w r i t e d o w n t h e n a m e o f t h a 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 w e r e R a t i ya M a r g , H a r s h V i h a r , B a n d h Road,Saket,khanpur, etc

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, India Director 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 customers 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 Customers and Consumers 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 Very important Important Neutral OUTLETS 10 94 269

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!

CATEGORY VERY 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 GOOD GOOD NEUTRAL

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

Name of Summer Trainee/SR: VINOD KUMAR Areas Covered: JWALAHRI, MULTAN GR,PASCHM VHR,BG 6 Beat Name: PASCHIM VIHAR AND 7 FORTUNE(RV SAFFOLA SUNDROP O) NF(RVO) Weekly Weekly Weekly Weekly Sale Stock Sale Stock Sale Stock Sale Stock Shop Name includes 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 Visi name of shop & lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt bilit landmark/adderss r r r r r r r r r r r r r r r r y SHARMA STORE (SHOP NO.3 B-2 PASCHIM VHR) 1 1 1 5 1 3 3 2 I SHAKTI STORE (SHOP NO.18 B-2 PASCHIM VHR0 2 2 1 1 N KAMAL FLOOR MILL (SHOP NO.15 B-2 PASCHIM VHR) 2 1 1 1 N M.K. STORE (A-3/271 PASCHIM VIHAR) 2 1 1 1 N MAA SANTOSHI STORE (A-6/472 PASCHIM VHR) 1 1 1 3 3 2 2 I KAPOOR STORE (A-1/88 PASCHIM VIHAR) 2 1 4 2 2 2 I

Date:11th MAY

K.K.STORE (A-2 DDA MKT PASCHIM VHR) JAI DURGA STORE (A2/57 PASCHIM VHR) UPPAL STORE (A-1 MAIN MKT PASCHIM VHR) KWALITY STORE (A-1 PASCHIM VHR) KAPOOR STORE (A-7 MAIN MKT PASCHIM VHR) DURGA STORE (A-1 LIG FLAT PASCHIM VHR) LAXMI STORE (A-1B PASCHIM VHR)

1 1 1 1 1 1 1 1 1 1 1

2 4 2 3

1 2 1 3 1

2 2 1 3

1 1 1 2

N I N I

2 1 1

1 1 1 1

3 2 2

3 2 1

2 2 1

2 1 1

I N 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 Beat Name: BANDH ROAD

Shop Name includes name of shop & landmark/adderss DURGA TRADERS (NEEM CHOWK VEER BAZAAR)

Name of Summer Trainee/SR: VINOD KUMAR MAL Areas Covered: BANDH ROAD, HOLI CHOWK FORTUNE(RV SAFFOLA SUNDROP O) NF(RVO) Weekly Weekly Weekly Weekly Sale Stock Sale Stock Sale Stock Sale Stock 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 Visi lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt bilit r r r r r r r r r r r r r r r r y 2 2 1

SINGH STORE (NEEM CHOWK VEER BAZAAR) AGGARWAL STORE (C-337 SANGAM VIHAR) AVINASH STORE (G-392 SANGAM VIHAR) LAXMI STORE (LAL DORA MKT. SANGAM VIHAR) JAGDAMBA STORE (C-174 SANGAM VIHAR) SHYAM TRADERS (596/2 LAL DORA MKT.SANGAM VHR) SANGMESHWAR STORE(596/2 LALDORA MKT.) GOYAL STORE (ASTHAL MANDIR ROAD SNGM VHR)

2 2 3 3 3 1 0 1

1 1 1 2 1 1 1 2 1 1 1 1 N N N 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

Vi si bi lit y

Stock of Sweekar
P A Stock Off Reason re b Given Take( for No

Special Feedbac Display k for of each Sweekar shop Presen A t b

s e n t

s e n t

ltr)

Stock

s e n t P ai d ( P ) Un pai d( UP )

V.K.TRADERS (MAIN MKT MANDOLI ROAD) ARUN AND CO. (MAIN MKT MANDOLI ROAD) MITTAL STORE (MAIN MKT MANDOLI ROAD) DEEPAK STORE (MAIN MKT MANDOLI ROAD) DGUPTA STORE (MAIN MKT MANDOLI ROAD) JAMUU STORE (MAIN MKT MANDOLI ROAD) J.P.ARORA STORE (MAIN MKT MANDOLI

6PC(1 2PC(1 LTR) LTR)

UP

6PC(1 3PC(1 LTR) LTR) 6PC(1 2PC(1 LTR) LTR)

UP

UP

6PC(1 2PC(1 LTR) LTR) 20PC( 1LTR) +2PC( 5PC(1 5LTR) LTR) 10PC( 1LTR) +1PC( 5PC(1 5LTR) LTR) 20PC( 6PC(1 1LTR) LTR)+ +2PC( 1PC(5

UP

VI

UP

VI

ROAD) GAUPANSARI STORE (MAIN MKT MANDOLI ROAD) BANSAL SUGAR AGENCY (MAIN MKT MANDOLI ROAD) C.B SUPER STORE (MAIN MKT MANDOLI ROAD) TARUN K.STORE (MAIN MKT MANDOLI ROAD)

5LTR)

LTR) RETAILER DID NOT TAKE THE PRODUCT SMALL SHOP SO SALE NOT EXPECTED

A 20PC( 6PC(1 1LTR) LTR)+ +2PC( 1PC(5 5LTR) LTR)

VI

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. T h i s w i l l g i v e o p p o r t u n i t i e s t o r e s e a r c h e r t o g e t t h e b r i e f i d e a a b o u t t h e s t u d y.

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 h e m a r k e t . T h e s t u d y a l s o i n c l u d e s v a r i o u s o t h e r a s p e c t s i n c l u d i n g t a s t e a n d 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 th e 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. Cargills products do exactly that and that is why it is chosen by CONSUMER VOICE.

CONSUMER VOICE - A government funded voluntary organization that works towards consumer education and awareness, c o n d u c t e d a l a b o r a t o r y 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 b e c a u s e o f t h e t yp i c a l m i n d s e t o f I n d i a n c o n s u m e r . T o a c h i e v e t h i s p o s i t i o n Cargill first wanted to increase its product availability in the market and it did by the expansion of coverage area. Now company is working on advertise m e n 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. F o r t h i s C a r g i l l i s u s i n g 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 companys 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 first it should make it base work very strong and then it should g o f o r marketing or advertisement. Cargills 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 consumers 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

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 Beat Name: RATIYA MARG

Shop Name includes name of shop & landmark/adderss SARASWATI DRY FRUITS (G-8/2 SHOP NO.20) RAHEES MASALA (G-8/2 SHOP NO.23) LALIT STORE (SHOP NO.25 RATIYA MARG) BALAJI STORE (SHOP NO.36 RATIYA MARG) DOLY GENERAL STORE (D-1154 RATIYA MARG) AJAY GNRL MARG (SHOP NO.4 RATIYA MARG) VINOD STORE (D-1134 RATIYA MARG)

Name of Summer Trainee/SR: VINOD KUMAR MAL Areas Covered: RATIYA MARG FORTUNE(RV SAFFOLA SUNDROP O) NF(RVO) Weekly Weekly Weekly Weekly Sale Stock Sale Stock Sale Stock Sale Stock 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 Visi lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt bilit r r r r r r r r r r r r r r r r y 2 3 3 1 1 1 5 1 1 1 2 1 0 2 2 1 3 1 3 1 2 1 1 N N I N N

5 2

3 1

N N

RADHASWAMI STORE(SHOP NO.48 RATIYA MRG) RAKESH STORE (D-84 RATIYA MARG) GUPTA DAIRY(SHOP NO.2 RATIYA MARG) NAMAN PROVISION STORE(G-8A/5 RTIYA MRG) KRISHNA GUPTA GNRL STORE(G8A/10 RTYA MRG GOYAL STORE (D-32 RATIYA MARG) AGGARWAL STORE (D31 RATIYA MARG) GARG STORE (G-11/1 RATIYA MARG) SHARMA STORE(G12/1 RTIYA MARG) GUPTA G.STORE(G-12/36A RTIYA MRG) ANIL STORE (H16/190 RATIYA MARG VANDANA JAIN STORE(H-16 RATIYA MARG) 1 1 1

4 2 2

2 1 1

I N N

1 3

1 2 2 3

2 6 3 1 2 1 1

1 8 2 1 1 1 2

N I N N N

Date:8nd MAY 2012 Beat Name: AAYA NAGAR

Shop Name includes name of shop & landmark/adderss SINGHAL STORE (MAIN ROAD AAYA NAGAR) KRISHNA STORE (MAIN ROAD AAYA NAGAR) APNA STORE (MAIN ROAD AAYA NAGAR) JAIN STORE (MAIN ROAD AAYA NAGAR) BANSAL STORE (MAIN ROAD AAYA NAGAR) SHRI RAM STORE (MAIN ROAD AAYA NAGAR) ANNAPURNA STORE (MAIN ROAD AAYA NAGAR) TIWARI STORE (MAIN ROAD AAYA NAGAR) POOJA STORE (MAIN ROAD AAYA NAGAR) SUNIL STORE (MAIN ROAD AAYA NAGAR) NEGI STORE (MAIN ROAD AAYA NAGAR)

Name of Summer Trainee/SR: VINOD KUMAR MAL Areas Covered: MAIN ROAD AAYA NAGAR FORTUNE(RV SAFFOLA SUNDROP O) NF(RVO) Weekly Weekly Weekly Weekly Sale Stock Sale Stock Sale Stock Sale Stock 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 Visi lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt lt bilit r r r r r r r r r r r r r r r r y 2 1 1 4 6 1 1 1 5 1 3 5 3 1 1 1 1 2 4 1 2 1 N I I I N N

1 2 2 3 1 1 1

1 2 1 3 2

I N N

2 2 1

2 5

N N

AGGARWAL STORE (MAIN ROAD AAYA NAGAR) GOYAL STORE (MAIN ROAD AAYA NAGAR) MOHAN STORE (MAIN ROAD AAYA NAGAR) KRISHNA STORE (MAIN ROAD AAYA NAGAR) YADAV STORE (MAIN ROAD AAYA NAGAR) M.D.STORE (MAIN ROAD AAYA NAGAR) GUPTA STORE (MAIN ROAD AAYA NAGAR) SUKHVEER STORE (MAIN ROAD AAYA NAGAR) 1

2 4 1 1 1

2 3 1 1

1 2

1 2

N I N

ANNEXURE 2
This is a sample beat list prepared by me for data base collection this 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 Visi of bili Shop ty Pr es en t

Stock of Sweekar
Stoc Ab k Off Reason se Give Take for No nt n (ltr) Stock

Display of Sweekar
Ab se nt

Special Feedback for each shop

Present Pa Unp id( aid( P) UP)