Marketing Management -I

Project Report

Branded Cooking Oils


Section C Group-III
Ganesa Kumar K V 0128/48
Happy Saini 0137/48
Harshit Krishna 0143/48
Himanshu Kumar 0147/48
Rohan Gala 0127/48
Uday Mehta 4035/18
Vinay Kumar Juluri 4040/18

06-06-2014
Industry Introduction
Marketing Management Project Report
Low-margin and high-turnover industry
Steady growth of around 4.5%
Per capita consumption:
Current levels-13.5 - 14 kg.
World average - 24 kg
Raw oil-35%, Refined oils-55% & Vanaspati-10%
Branded oil industry is growing at rate of 20%
Major brands: Sundrop, Nutrela, Dhara, Saffola,
Sweekar, Nature Fresh
Major Oils: Palm oil - 46%, Soya bean oil - 16%
and mustard oil 14%
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Marketing Survey
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Marketing Management Project Report
Objectives
Key factors affecting consumer buying behavior
Analyze the interaction between these factors
Derive conclusions that a marketer can use
Methodology
Survey conducted under two broad categories:
Customers (income based segmentation)
Lower middle class (LMC)
Upper middle class (UMC)
Shopkeepers
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Questions for consumers
Specific brand preferences
Reasons for choice of brands
Brand Loyalty



Questions for shopkeepers
Influence on consumer buying behavior
Buying pattern and SKU preferences
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Customer Analysis
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Customer
Perceived Value
Determination
Analysis
Customer
Satisfaction
Determination
Enhancement
Decision Makers
Buyers and
Users
Influencers
Factors influencing
Consumer
Behavior
Personal
Social and
Cultural

Marketing Management Project Report
We shall cover

-> Observations and Explanations approach
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1. Customer Perceived Value
1.1 Customer Benefits
High Income
Low Income
1.Psychological
(Health Benefits)
Increasing
Importance
2.Functional
(Taste, Purity, Quality)

3.Economic
(Prices)
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7%
31%
20%
42%
Lower Middle Income
31%
47%
5%
17%
Upper Middle Income
Traditionally Used
Health Benefits
Taste & Quality
Price

Marketing Management Project Report
1.2 Most Valued Attributes
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UMCs placed constant importance on
particular attributes over time, but
changed brands to fit their criteria the
best as per their lifestyle

LMCs as they grew in income shifted the
amount of importance they laid on
individual product attributes
Marketing Management Project Report
1.3 Value Analysis
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Must be
constantly
monitored

2.1 Total Customer Satisfaction
Marketing Management Project Report
Expectations Performance
High rate of repeat purchase: Retention
difficult without constantly meeting
expectations
Attributes observed in decision making:
Tangible and Intangible
Difficult to portray superiority in terms of
Intangible benefits
Focus on
Marketing
?
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Marketing Management Project Report
Very competitive market


High Customer Retention indicates
Satisfaction and hence, loyalty


Most consumers long term users of
particular brands, but many also willing
to shift to a better value offering


Constantly
Improve
Value
Proposition
2.2 Customer Loyalty and Retention
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Marketing Management Project Report
25%
46%
29%
Would switch to better Value
Offering
Yes
Maybe / Will
test once
No
8%
6%
47%
39%
Years since change of Brand
< 1
1 to 2
2 to 5
> 5
2.3 Customer Loyalty and Retention
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Marketing Management Project Report
Buyers and Users
Users of Cooking Oil (usually homemakers)
principally decide type, to some extent brand
Buyer (in some cases the earning member) final
decision maker at point of sale, affects choice of
brand to some extent
Influencers
Other family members (children, senior citizens)
influence which product attribute gets priority
in buying
Older members: Health Benefits more
important, Children: Taste more important
3. Decision Makers
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4. Other Factors Influencing
Consumer Behavior
Marketing Management Project Report
Personal Factors
Economic Circumstances
Age and Stage in Life

Social and Cultural Factors


Sources of Information
64% 7%
22%
7%
Sources of Information
TV
Magazine
Word of Mouth
Point of Sale
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Marketing Management Project Report
Saffola
36%
Nature
Fresh
13%
Sundrop
23%
Emami
6%
Fortune
13%
Engine
6%
Others
3%
Upper Middle Income
Preferred Cooking Oil Brands
Refer to Exhibit 6
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Marketing Management Project Report
Saffola
14%
Nature Fresh
9%
Sundrop
34%
Emami
3%
Fortune
17%
Engine
20%
Others
3%
Lower Middle Income
Preferred Cooking Oil Brands
Refer to Exhibit 6
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Marketing Mix

Marketing Mix Variables - 1
Marketing Management Project Report
Product
Value
Stock Keeping Unit
Quality

Price
Product Quality Pricing
Lower quality oils branded, higher quality
oils
Value Pricing
Brands offering similar benefits are priced
differentially


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Marketing Mix Variables - 2
Marketing Management Project Report
Place
Kirana stores, retail shops & wholesalers.
Modern retail stores
Every SKU & variant of oil is present

Promotion
Special offers
Advertising


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Marketing Management Project Report


Thank You
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Marketing Management Project Report


Questions
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