1. Introduction The poultry industry in India represents a major success story.

What was largely a backyard venture before the 1960s has been transformed into a vibrant agribusiness with an annual turnover of Rs 30 000 cores. Today, India is the third largest egg producer in the world (after China and the United States of America), and the nineteenth largest broiler producer. Undoubtedly, this impressive growth is a result of several factors, such as active develop- mental support from the state and central government, research and development support from research institutes, inter national collaboration and private sector participation. A point worth mentioning here is that Indian poultry is self-sufficient, supported by a broad and strong genetic base in which the productivity levels of broilers and layers are equal to those achieved elsewhere (e.g. in the United States of America and the European Union). Undoubtedly, these achievements are quite significant. Today, however, globalization is posing greater challenges: namely, making the industry globally competitive and viable; and fulfilling the quite enormous potential for growth that is presented by changing food habits and preferences. 1.1 Structure of poultry production Poultry farming involves breeding and raising chicks for various purposes. Breeding farms hatch and raise poultry for sale to other farms. Broiler farms rear chickens for their meat, procuring day-old chicks and keeping them for around six weeks. Layer farms keep hens to produce eggs. Another category of operators, which can loosely be termed “integrators” keep breeding stock and also operate hatcheries and commercial broiler farms. There are estimated to be roughly one lakh layer farmers and an equal number of broiler farmers. About 70 percent of these are small-scale (3 000 – 10 000 birds) and medium-scale (10 000– 50 000 birds) farmers. Only 10 percent are large-scale farmers with units varying from 50 000 to 4 lakh birds. Large farms require a good level of automation. Automation has become necessary for a number of reasons, such as hygiene and sanitation, disease prevention and, in the case of hatchery operations, to produce a greater number of chicks in a single hatch and to ensure better quality chicks. The whole organized poultry sector uses hybrid varieties of poultry and has adopted cages. The small and marginal farmers generally operate on the deep litter system. In terms of technology, farmers have adopted new feeding and water systems and new management, healthcare and hygiene practices. A distinctive
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feature of Indian poultry production is that it is self sufficient, supported by a very broad and strong genetic base in which the productivity level (feed conversion ratio – FCR) of broilers and layers is equal, if not superior, to those found in developed countries such as the United States of America and the European Union. India is also one of the few countries of the world, which has put into place and a sustained specific patho- gen free (SPF) egg production project, which can be described as the last word in poultry technology. There are a dozen processing units for broilers and about three units for egg processing (a further three are not producing at present).All egg-processing units, such as Balaji Foods of Venketeswara Hatcheries and SKM of Erode, have put in place the hazard analysis and critical control point (HACCP) system in their processing units. The poultry processing industry in India is still at a nascent stage and is growing at a very slow pace. Most chickens in Thailand, Indonesia and Malaysia are processed and branded. However, in India only 2 to 3 percent of the total poultry meat is processed. The major impediments to the poultry processing are as follows: Indian consumers mostlyprefer live and fresh chicken butchered before their eyes, which results in 95 percent of chickens being slaughtered by the retailers in a very unhygienic manner. • a lack of cold chain facilities, exacerbated by power shortages, which makes it difficult to make frozen, freshly chilled chicken available to the consumer; and a lack of promotional campaigns for chicken products, as some opposed to Non-vegetarian foods.

1.2 Major players in the poultry industry Venketeswara Hatcheries (VH), one of the leading names in the poultry industry in India, has played a major role in disseminating the latest techniques in poultry keeping and animal health care. It undertakes activities such as pure-line breeding, supply of grandparent and parent stock, feed manufacturing, chicken processing, egg processing, SPF production, poultry vaccine production, diagnostic services, human-resource training and production of pet foods. It is also the first Indian company selling processed chickens under the “Venky’s” brand name. It supplies a number of large international fast-food companies. The product range caters to retail as well as institutional markets, and includes fresh chilled chicken, frozen chicken (whole, boneless and portions), and several economy products. Venky’s Mintomein, an array of ready-to-cook products (freezer-toA Study On Retail Outlet Reach & Business Development In Suguna Daily Fressh

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fryer, microwaveable and cold cuts) has wide appeal among homemakers. Although, the company has operations in all parts of India, it is concentrated in the south and west. Despite the liberalized trade regime, the conglomerates constitute around 80 percent of the layer market and 65 percent of then broiler market. Godrej Agrovet set up its integrated poultry business in 1999. Today, the company covers the whole spectrum of the poultry industry, from breeding, hatching and rearing of broilers to processing and marketing of its branded chicken “Godrej Real Good Chicken”. It also has contract farming operations in south and west India working with 1000 farmers 1.2.1 Vertical integration/contract farming The economies of scale that have led to integrated poultry production in other countries have also begun to take hold in India. In southern and western parts of India, large-scale vertical integration is catching up especially in broiler production. Under this system, the integrator invests in the entire value chain, including: • • • Grand parent farms; Parent stock farms; Hatcheries; and Feed mills.

Poultry farmers invest in poultry sheds and equipment on their existing land. Integrators provide: • • • • • Day-old chicks; Feed; Medicines/vaccines; Training to farmers in process and cost management; and Technical supervision.

Integrators take the broilers at around 42 days of age, and farmers are paid growing charges according to agreed rates. The farmers are given an incentive bonus if the FCR and/or mortality rate is better than the contracted level. Thus, the farmers get considerable price insurance. Moreover, the advantage is that there are no intermediaries: only integrator – farmer – wholesaler in the market. Farmers do
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not have to make any investments in working capital. There is also no risk to farmers from fluctuations in selling process – they get a fixed income. This arrangement has encouraged a number of small farmers to enter the poultry business in order to supplement their income with a stable return on their investment. Poultry integrators have been expanding rapidly in the states of Karnataka, Tamil Nadu, Andhra Pradesh and Maharashtra. In Pune, in the State of Maharashtra in western Indian, a major poultry rearing area, about 6 000 poultry farmers are on contract with Venkateshwara Hatcheries, popularly known as Venky’s, or with Godrej Group. Similarly, in the south, particularly in the Coimbatore area of Tamil Nadu, integrators now reportedly account for 75 percent of production and consumption. Integration has moved rather slowly in the northern and easter n parts of India. The current status of integration is: South – 80 percent; West – 70 percent; North – 10 percent; and East – 50 percent. Key players in integration include: 1. Venkateshwara Hatcheries 2. Suguna 3. Godrej 4. Shanti 5. Taffa 6. Arumbagh 7. Skylark Integration has not only contributed to greater production efficiencies including lower FCR and mortality rates, but has also reduced marketing margins as a result of the increased market power of the integrator. Besides reducing production costs, the integrators have helped to cut consumer prices by cutting into the traditionally large marketing margins. The integrators have tended to establish wholesale and retail price leadership in the markets where they operate by reducing the number of intermediaries or by selling directly through their own retail outlets (e.g. in Coimbatore). In other regions, particularly in the north, traditional wholesalers still dominate the markets and marketing margins and retail prices are considerably higher than in the south. Lower retail prices have stimulated consumption, with per capita consumption in southern India reported to be 4 times the national average.
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1.3 Producers’ association The National Egg Coordination Committee (NECC), which has a membership of more than 25 000 farmers, is probably the largest association of poultry farmers in the world. Its genesis goes back to 1981. Around this time, the Indian poultry industry was going through an unprecedented crisis. The intermediaries controlled trade and forced prices down. As a result, farmers were being paid less than their production costs. The scenario looked quite bleak. Over 40 percent of farmers had stopped operations because the business Type of vertical integration or contract farming common in the broiler industry had become economically unviable – feed costs had more than doubled, but egg prices remained static at 35 paisa. Determined to do something, the late Dr B.V. Rao, along with a group of farmers, started a mass movement – they travelled across the country holding meetings with farmers and traders. Their objective was to unite poultry farmers from all over India, and see that they get better prices by eliminating intermediaries from the trade. Thus, NECC was born. Since then, NECC has played a significant role in the betterment of poultry farmers, and the egg industry in general, through its various programmes such as market intervention, price-support operations, egg promotion campaigns and consumer education. The manifold activities of NECC include: • • Price declaration; Deciding a reasonable price for eggs that ensures a reasonable return for the farmer, decent margins for the intermediary and a fair price for the customer; Monitoring the egg stock levels in different production centres; Managing stock levels and regulating the movementof stocks from surplus to deficit regions so as to maintain a balance between demand and supply; Market intervention through AgroCorpex India Ltd; Partnership activities in the layer industry Organizing and uniting poultry farmers across the country;

• •

• •

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• • •

Creating a dependabledistribution network so that eggs can reach every household Undertaking egg promotion campaigns to increase the consumption of eggs; Generating employment by encouraging people to take up egg farming and egg trading.

NECC is a completely voluntary body created by farmers, and runs on cooperative spirit. It makes no profits and subsists mainly on contributions from its members. Most of today’s egg production comes from NECC members. In the broiler sector, there is no national organization that looks after the producers’ interests. No doubt, some regional organizations (e.g. the Broiler Growers’ Association) have emerged and are trying to organize farmers, but the broiler marketing is largely in the hands of big traders and commission agents in mandis (wholesale markets) like Ghazipur in Delhi and Crawford market in Mumbai. In general, intermediaries are vital links between producers and consumers. The margin between the farm gate price for broilers and the price paid by the consumer is about 20 to 25 percent

1.4 Foreign direct investment in the poultry sector Foreign direct investment (FDI) has not been a significant factor in the expansion of inte grated poultry operations. A large integrator operating in both the southern and western regions runs a processing facility built recently with the assistance of private investment from Saudi Arabia. Two large Asian integrators, Japfa from Indonesia and CP from Thailand, have been in the feed business in India for several years, but so far have not expanded into poultry integration. Although farms are importing breeding stock and technology from foreign breeders, there is currently almost no FDI in the broiler sector. FDI is more common in pharmaceuticals (poultry production inputs) where most companies are either multinationals or Indian joint ventures with multinationals. Most drugs or vaccines for poultry are produced by these units. The major feed companies are Indian owned.
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According to the Reserve Bank of India, the actual inflow of FDI in the food and food-processing sector was more than US$711.4 million (Rs 3 187 crores) up to March 2004. Nearly 30 percent of FDI in this sector comes from EU countries such as the Netherlands, Germany, Italy and France. 1.4.1 Constraints affecting the inflow of FDI in the poultry sector include: • • • • • • Poor power and transport infrastructure; Poorly defined phytosanitary measures; Limited market for frozen poultry; Lack of cold-chain facilities making it a difficult task to handle significant volumes of chilled or frozen products; Competitive local prices; and High taxes on processed food.

A more favorable policy environment than is presently available is therefore warranted. This would include: policies for improving infrastructure facilities which will help to stabilize the price of poultry products, creating efficient marketing channels that will help producers to obtain more remunerative prices; and increasing maize production by using improved seed varieties (FAO, 2003 “with the expansion of the poultry industry, the country’s government must address these new issues, including economic tradeoffs between poultry producers, feed producers, and consumers, potential public health concerns associated with traditional slaughter an marketing practices, and additional tariff and non-tariff policies for imports”.

1.5 Consumer demand and preferences Patterns of poultry meat and egg consumption in India show certain peculiarities. First, the Indian poultry market remains primarily a live bird market. The consumption of chilled and frozen poultry products is very small – only 5 percent of the total production is sold in processed form; all the rest is sold alive. Second, the demand for eggs is seasonal – very low in summer compared to other seasons of the year. Eating eggs is prohibited in certain months. Further, when fish catches are high, the demand for eggs tends to be low. Thus, the demand for eggs
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fluctuates throughout the year, while supply is continuous. Developing storage facilities or converting eggs into egg powder would be options to address the problem. However, the demand for egg powder has so far remained low, and building up cold storage facilities to preserve eggs takes a long time. Third, cities and towns, home to 30 percent of India’s population, account for 75 percent of total poultry consumption. The annual per capita egg consumption in India’s major cities, such as Mumbai, Calcutta, Delhi and Chennai, is reported to be 100 or even as high as 150 or 200. In contrast, annual per capita consumption in rural areas is as low as 15 eggs. The low consumption in rural areas is due to non-availability and higher prices. As described in Section 3, poultry meat has been gaining prominence over other meats. It has outpaced its two main competitors – beef and veal and buffalo meat. Does this represent a shift in the preference pattern of households from other meats to poultry meat, or more generally a shift from vegetarianism to non-vegetarianism? It can be speculated that high mutton prices, religious restrictions on beef and pork consumption, and the lower availability of fish in non-coastal regions may have combined to make poultry meat the preferred and most consumed meat in India. 1.6 Role of large retailers India is at present the most attractive destination for the world’s big retailers such as Wall-Mart, Woolworth, Tesco, Reliance, Bharati, Birla, Tata and Godrej. All top retailers are making a beeline for the Indian market. The latest report by AT Kearney and CII (2006) shows India, China and the Russian Federation at the top of the annual list of most attractive emerging markets for retail investments. Moreover, India has retained its top position three years in a row. The Russian Federation kept its place at number two, while China moved from the fifth rank to third this year. Viet Nam and Ukraine are fourth and fifth respectively. What is luring them all to the Indian market? The retail industry is almost untapped and undeveloped. The current total value of the Indian retail sector is estimated to be US$330 billion. Well over 95 percent of the market is currently unorganized – small family run stores. It is predicted that by 2011, the Indian retail sector will be
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worth US$892 billion What is more important, especially from the point of view of global players eyeing opportunities in India, is that the fastest growth is in “modern retail” – supermarkets, department stores, hypermarkets and special shopping malls. Only 4 percent of India’s total retail now falls within the “modern” or “organized” category, compared to 85 percent in the United States of America and 20 percent in China. Organized retailing in India is predicted to grow from the current $US12 billion a year to almost $US100 billion by 2011 and a dazzling $US239 billion by 2015 (IBEF, 2006).What is driving this spectacular growth? India’s vast middle class. It is estimated that 70 million Indians in a population of about 1 billion now earn a salary of US$18 000 a year a figure that is set to rise to 140 million by 2011 (BBC News, 2006). Driven by changing lifestyles and strong income growth, these people are looking for more choice as to where to spend their new-found wealth. The changing consumption pattern of Indian consumers is encouraging the big business houses to invest in this sunrise sector. However, the road to this rapid growth in retail is not without difficulties. Lack of refrigeration and cold storage chains for perishables, poor transport links, red tape at state borders, and too many intermediaries mean that 40 percent of perishables are spoilt. More-over, the Indian retail sector has until now been protected. Recently, restrictions on foreign investment have been eased, allowing overseas retailers to own 51 percent of outlets as long as they sell only single branded goods. For the first time, chains such as McDonald’s, Marks and Spencer and The Body Shop can open and control their own operations in India. Previously, many of them worked with franchisee partners. 1.6.1 Food retail Food dominates the shopping basket in India. The US$6.1 billion Indian food industry, which forms 44 percent of all fast moving consumer goods (FMCG) sales, is growing at 9 percent per annum and has set the growth agenda for moder n trade formats. As nearly 60 percent of the average Indian grocery basket comprises nonbranded items, the branded food industry is homing in on converting Indian consumers to branded food. However, the degree of supermarket penetration of the food retail market in India is still low – under 5 percent – compared to around 75 percent in Brazil, 57 percent in Argentina, 50 percent in Chile, 45 percent in Mexico, 30 percent in Kenya, 40 percent in Thailand, 60 percent in the Philippines and 25 percent in China. Will the rise of supermarkets and hypermarkets throw small farmers out of business?
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Or will it give rise to bigger opportunities for small and poor farmers? There is, of course, a widespread perception in India that the growth of supermarkets will pose a threat to small farmers. This stems from the experiences of other countries. In China, for example, it is reported that producers who are certified as “green food” producers and sell to supermarkets are paid five times more than they would receive elsewhere. However, to get certified as a “green food” producer it is necessary to have production records inspected and to have the production environment sampled and checked. Supermarkets, therefore, usually sign contracts with large producers. Similarly, in the Philippines, small producers of vegetables often found it difficult to hold on to their business links, and eventually dropped out. Supermarkets are concerned to reduce transaction costs. Reducing transaction costs requires fewer transactions, and hence greater significance is given to food quality and reliability in supply. For smallholders, these demands become an entry barrier to the supply chain. At the same time, supermarkets open up opportunities for smallholders. They reflect the product requirements of high-income consumers, and transmit this information to farmers. In practice, however, supermarkets hardly buy directly from producers. They procure goods through commissioned agents or assemblers. Depending on the crop, and the distribution of farmers in terms of size, these consolidators or assemblers may or may not choose to work with small farmers. Smallholders may find it difficult to penetrate the system individually. The solution lies in new forms of vertical integration such as contract farming that would enable small farmers to continue to participate in the supply chain. 1.7 Benefits of Chilled and Frozen Meat 1.7.1 What is warm, chilled and frozen meat? Warm Meat is obtained from freshly slaughtered animals or poultry. The meat is not refrigerated at any stage of the meat handling or at the point of sale, which is usually the wet market place. Meat is highly perishable. Without refrigeration, spoilage and food poisoning bacteria grow rapidly on the warm meat. Chemical and biochemical changes are also accelerated under the warm conditions. These result in rapid deterioration of the meat quality. The distribution and handling
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system for warm meat is not conducive to optimum hygiene. The warm meat does not keep its freshness and eating quality for long. Chilled Meat is fresh meat produced from freshly slaughtered animals or poultry and stored under refrigeration without being frozen. In the abattoir, the carcasses are immediately chilled down to the recommended chilled meat temperature of 0°C to 4°C by a rapid chilling process using advanced refrigeration technology. The chilling temperature is maintained throughout the subsequent processing, handling, transport, storage, distribution and retail. This unbroken link of refrigeration is referred to as a Cold Chain System for Meat. This continues through to keeping chilled meat in home refrigerators. Cold temperatures keep harmful bacteria from growing. Chilling also slows down quality deterioration due to growth of spoilage bacteria as well as chemical and biochemical changes. Chilled meat keeps its freshness for 3 to 5 days in display chiller or home refrigerator. It is convenient to use and can be cut into specific portions to the exact requirements of the user. Frozen meat is similarly processed from freshly slaughtered animals or poultry. The meat, which is in peak condition and freshness, is preserved by rapid freezing to colder than -18°C and is then stored and distributed in this frozen form. Freezing stops bacterial growth. The complex chemical changes that cause deterioration of the meat, such as rancidity, are also slowed down considerably. Freezing meat can therefore preserve the meat in good condition and retain its wholesomeness and quality for long periods ranging from 6 months to a year depending on the kinds of meat. Upon thawing, the quality of the meat should be as acceptable to the consumer as the fresh product. 1.8 COMPANY PROFILE 1.8.1 Suguna India’s largest poultry enterprise! In its 25 years of existence, Suguna has gone from strength to strength and has become a Rs. 2030 crore company that makes it India’s No. 1 broiler producer. Along the way, Suguna’s pioneering efforts in contract farming helped create thousands of rural entrepreneurs who share the growth successfully. "Poultry Integration" introduced and pioneered by Suguna in the country has energized the livelihoods of farmers in rural India.
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Suguna ranks among the top ten poultry companies worldwide. With operations in 11 states across India, it offers a range of poultry products and services. The fully integrated operations cover broiler and layer farming, hatcheries, feed mills, processing plants, vaccines and exports. Suguna markets live broiler chicken, value added eggs and frozen chicken. With the intent to provide consumers with fresh, clean and hygienic packed chicken, Suguna has set up a chain of modern retail outlets. Quality products are delivered through stringent processes, ultra-hygienic rearing methods that are acknowledged worldwide. The ISO certification is further proof of Suguna's commitment to quality. The group collaborates with leading international companies to bring the latest technology and practices. Today, the company’s brand Suguna Chicken is a household name in India. With its Suguna Daily Fressh outlets, Suguna Home Bites, Suguna Anytime processed chicken and four varieties of specialty Suguna value added eggs, Suguna is the undisputed leader in poultry products. Suguna Home Bites being the latest in its product range is a new category of home meal replacements (HMR). 1.8.2 History Managing Director Mr. B.Soundararajan and Joint Managing Director Mr. G.B.Sundararajan saw potential in growing the Indian Poultry Industry through integration, which later came to be known as Contract Farming. This led Suguna Poultry to pioneer contract farming in India. In 1986, Mr. B.Soundararajan and Mr. G.B.Sundararajan set up a poultry farm with 200 layer birds at Udumalpet. During 1989 - 90, when chicken prices crashed because of an over-supply of birds in the local market, Suguna saw an opportunity for business growth by helping the poultry farmers who had bought feed and medicines on credit and could not clear their dues. To help them recover their money, these visionaries began to provide feed and health support to indebted farmers in return for the end product - eggs. The success of this exercise gave birth to the Suguna Integration Model. The poultry integration model has set a win-win situation for both the farmer and the integrator. Farmers are provided with day-old chicks, feed and health support. Performance is monitored on a daily basis with Suguna field staff visiting the farms to check on the health of the birds, feed intake, growth and mortality
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levels. In six weeks time, the birds are weighed and are ready to be sold by Suguna. Farmers are paid a handsome growing charge for the birds at the end of this period. Thus, Suguna takes this success model to the next level vision of energizing rural India benefiting the country, farmer and the company. A constant and relentless drive has taken the company's growth and expansion which covers over 15,000 farmers from 8,000 villages in 11 Indian states. Impressed by the model and its success, Suguna receives invitations from many state governments to set up its operations. Many investors and delegates from across borders visit Suguna’s facilities to study this model and later adopt in their own countries. With mastery and success in contract farming, Suguna has shaped the poultry industry to its current position in India.

1.8.3 Strength energizing rural India Energizing rural India through a business process that creates and sustains innovation and strategy, by continuously adding value and care to its stakeholders with a style of management that will be exemplary to the corporate world. In business, there is always a better way. And the first step towards achieving that is to have a dream. For Suguna, the dream is to shape the future of India. Any dream for India would be incomplete without a powerful rural revival. This belief has driven Suguna to invest heavily in rural India and set its sights on a powerful economic and social transformation. 1.8.4 Milestone 1984 1991 1992 13 Suguna Group was founded Introduced new Concept of contract farming in India First Hatchery

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1993 1998 1999 2000 2001 2004 2006 2007 2007 2007 2008

First Breeder Operation Semi Automatic Meat Processing Unit with Cold Storage Fully Automatic, Micro Processor Controlled Feed Mill Inclusion of Grand Parents Expansion of Operations into other states Soya Unit Operation in Nagpur Successful implementation of Oracle ERP systems Layer launch Asian Livestock Industry Award Daily Fressh and Suguna value added eggs launch Convenience foods launch

1.8.5 People Suguna's largest and most valuable asset today are its people - 15,000 farmers, 25,000 channel partners and 4,800 employees who are integral to the Suguna family. Every member of the Suguna family works towards the vision of energizing rural India. A multifaceted and talented workforce who brings cutting edge perspectives to practice, Suguna believes in the potential of its people, be it farmers, traders, veterinarians, management, finance, agricultural or engineering professionals. Every individual is focussed on modernizing the industry to ensure Suguna becomes a world leader in the poultry industry. Suguna’s employees are proud of the fact that they are part of an organization that has benefited thousands of farmers and has created employment opportunities for many more people. Suguna has also provided employment and assured income to thousands of farmers with its contract farming. Farmers receive assistance at every step, ensuring that they are at zero risk with regards to price fluctuations and market conditions. With incentive programs, farmers are constantly encouraged to perform better. Today over 15,000 empowered farmers and 10 lakh prosperous rural households

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reflect Suguna’s commitment to improve the social and economic status of rural India. Over 25,000 traders, suppliers and franchisees are Suguna's channel partners that are present across the country. A systematic and transparent chain of transactions and a well organized forward integration has ensured a steady and comfortable supply of products throughout the year. This has provided a perfect opportunity for partners to grow with Suguna. With complete support and co-ordination from every member of the family, Suguna today is a bustling Rs. 2030 crore enterprise, rewriting the futures of countless farmers and entrepreneurs. 1.8.6 Infrastructure Suguna leaves no stone unturned in its commitment to deliver products of the highest quality. In poultry integration, infrastructure becomes the backbone of the operations. A well established infrastructure supports the poultry operations endto-end, resulting in quality control and optimized productivity. The infrastructure at Suguna includes GP and parent farms, feed mills, environmentally controlled sheds (EC Shed), hatcheries, modern processing plant, large base of commercial contract farms, R&D centre, disease diagnostics and feed analytical labs, ERP driven information technology systems and an effective supply chain with its own fleet of vehicles. Suguna has made significant investments overtime that helps you, the farmer, to leverage and benefit the most. 1.9 Retail Revolution in Suguna Suguna Daily Fressh is a chain of high-quality, modern air-conditioned futuristic retail stores. Operating on a dealership model, Suguna Daily Fressh retails fresh hygienic nutritious and tender chicken in eight forms including whole dressed chicken, portioned plain and marinated items. The outlet also stocks Suguna value added eggs in four variants, frozen fish, sea food, sausages, salami and Suguna Home Bites, a range of ready to cook and ready to heat-and-eat items. Suguna Daily Fressh offers a unique shopping experience. With an elegant ambience, the modern retail store is aesthetically pleasing and is annexed with efficient storage facilities. The store is equipped with stainless steel work stations
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including upstanding storage units, precise cutting and packing machines, display freezer & chiller and automatic weighing machines. 1.9.1 Store description The Storage unit efficiently maintains an optimum temperature helping to retain the freshness of the products. The pre-cleaned chicken is cut with a precision machines facilitating quick and effective service. The shop area contains a glass display chiller showcase unit to display the range of portions. Suguna Daily Fressh conforms to the highest level in hygiene and food safety. Chicken retailed here is export quality and meets international quality standards. 1.9.2 Ensuring Quality Suguna Daily Fressh chilled chicken comes from our modern processing unit located at Udumalpet near Coimbatore in Tamil Nadu. The HACCP certified plant is monitored by the Export Inspection Agency (EIA). The processing line has been imported from Meyn Food Processing Technology, Netherlands, leader in the design and manufacture of such machinery. This ensures superior quality at every stage. Suguna’s processing plant has among the most modern and technologically advanced processing operations in the country with a processing capacity of 56000 birds per day. The plant operates using Good Manufacturing Processes (GMP) as determined by the HACCP requirements. The chicken products are halal cut, cleaned and portioned in hygienic conditions untouched by hand. Every batch undergoes meticulous quality control tests before being approved for dispatch. The quick chilled chicken is then transported to Suguna Daily Fressh stores in reefer trucks ensuring quality at its best. 1.9.3 Product width 1.9.3.1 Suguna’s high quality chilled chicken product range includes:

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Whole chicken

Drumstick

Curry cut

Lollipop

Mutton

Boneless breast

Marinated Lollipop

Marinated Drumstick

Marinated curry cut (Chilli chicken style)

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1.9.3.2 Suguna’s high quality frozen chicken product range includes: Whole chicken skin on with giblets Whole chicken skinless Curry cut – skin on & skin less Boneless breast Chicken cocktail sausage Chicken salami Marinated lollipop Marinated curry cut (Chilly chicken style) Whole chicken skin on without giblets Wings Minced meat Liver, Gizzard, Heart and Neck Janatha chicken Whole leg skin on & skinless Whole leg skin less Drumstick skin on & skinless

1.9.3.3 Suguna’s Value Added Eggs includes: Suguna Active Suguna Pro Suguna Heart Suguna Shakti

1.9.4 Benefit The demand for hygienic, clean and ready-to-cook chicken is increasing by the day. With a successful track record in this business, Suguna is well positioned to create quality suppliers who can cater to the fast growing demand through our Daily Fressh dealership business model. Suguna Daily Fressh is a futuristic business model with a steady return-on-investment (ROI). Now, you could be part of Suguna Poultry, a Rs. 2030 crore leader of the poultry industry in India.

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Suguna Daily Fressh provides you the opportunity to grow along with the rapid evolution of the retail and poultry industry. Suguna’s unique business model is designed to provide you with healthy incentives and assured monthly earnings. In addition, the dealership partners are supported to procure appropriate store equipments, design and architectural planning of the store and also benefit from well planned and executed marketing promotional resources. With 30 stores across Tamil Nadu and Kerala, Suguna Daily Fressh is fast becoming a popular household name for hygienic chicken. By being part of the Suguna Daily Fressh dealership network, you can associate yourself with a brand that is trusted for quality and value. 1.10 Marketing support As a Suguna Daily Fressh dealership you will receive strong support from Suguna’s expert marketing team. Various promotional events and walk-ins will be organized with the objective of educating and attracting the upwardly mobile as well as middle class consumers. The marketing team will also adequately focus in understanding consumer behaviour, perception and requirements. This level of involvement will help respond positively to consumers needs and requirements. Other advertisement support may be provided through one or more of the following which may be implemented in various stages of the store lifecycle.

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Glow sign

Wall Painting

Suguna Daily Fressh Magazine Advertisement

Suguna Daily Fressh Banner

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1.11 Why suguna Quality, vision and leadership are the defining and driving factors of any business. These critical qualities are normally acquired over a period of time for any new business. Now, as a Suguna Daily Fressh dealership, you can easily benefit from these qualities coupled with Suguna’s vast experience and expertise in the poultry sector. Sourcing quality products, developing relationships, marketing initiatives and most importantly retaining customers are some of the key challenges faced by a new business owner. As a Suguna Daily Fressh dealership, these challenges are well addressed and supported throughout your relationship. Also, with Suguna’s backing you are assured of a minimum revenue in the formative years. With a strong network of over 15,000 farmers, HACCP certified processing plant and a dedicated research & development wing, you are assured of receiving the most hygienic products that are of the highest quality. In addition, a strong insight into consumer's needs helps Suguna innovate and introduce products that are sought after by today’s consumer. As a Suguna Daily Fressh dealer, you will receive complete marketing and promotional support on a regular basis. Promotional activities will help you create awareness and establish walk-ins to the store. What’s more, a state-of-the-art technology infrastructure and an effective supply chain management allows you to receive supplies on time, each time. Experience Suguna’s participation and commitment right from the time of initial discussions, to opening your very own Suguna Daily Fressh store. Our team of experts will guide you throughout and help realise your dream within a month’s time.

1.12 Quality
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At Suguna, complete care is taken to ensure that you and your family enjoy the finest poultry products. Our quality philosophy is ingrained firmly in every member of the Suguna family. Be it farmers, employees or suppliers, everyone’s continuously sensitized and trained to maintain the highest quality standards. Quality processes are strictly enforced throughout the lifecycle from the farm till it reaches your plate. Our commitment is further reinstated with our investment in sophisticated technology, equipment and world class facilities. Furthermore, the chicken are carefully selected and bred in a healthy environment. The birds are fed with the most nutritious feed - rich in Maize and Soya, produced at Suguna's own feed mills. As a result, any Suguna product you buy is completely tasty and healthy. It is in this constant endeavor to deliver quality products that Suguna is regularly launching new initiatives. Be it the retail experience at Suguna Daily Fressh, or a range of products from Suguna Anytime, Suguna Value Added Eggs and Suguna Home Bites, you can be sure of the highest quality. 1.12.1 Ensuring quality through Bio-security and Support At Suguna, a lot of importance is given to bio-security and support to maintain a disease free environment for birds. Scientific bio-security measures help farmers and employees manage hygiene levels and minimize risk of pathogens. All contract farms and facilities are governed by Good Management Practice (GMP) and Standard Operating Procedures (SOP). Suguna’s field supervisors visit farms on a daily basis to evaluate the farm, feed and bird management practices. During these visits, supervisors get a hands-on experience working with farm owners/supervisors to help identify issues and address them effectively. With this, Suguna brings its vast experience of poultry integration and scientific management practices to every individual contract farm across the country. Since hygiene is directly related to bird health, there is a strong emphasis on hygiene practices followed at all facilities and farms throughout the lifecycle. Hygiene practices include disinfecting, feed production and management, and bird management. Suguna’s team also constantly monitors the pathogen levels in the water and environment ensuring safety measures are in place. Chicks are given only treated water stored in hygienic and clean conditions. Employees and visitors to critical facilities such as hatcheries, breeder or grandparent farms have to undergo

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strict standard cleansing measures such as baths, disinfectant sprays, change of clothes, mask, cap and gloves. Suguna standard practices and procedures are audited by ISO and have a scientific approach combined with sound management. The farms are supported by central R&D and technical management teams headed by General Managers of Health and Feed. The Daily Fressh and Suguna Anytime chicken come from Suguna’s modern processing plant which has HACCP certification which conforms to export standards. This ensures that the chicken is processed in a very clean and hygienic manner, with the same standard disinfectant and cleansing procedures followed by plant workers as part of the bio security and hazard control measures. Go ahead and savor your favorite Suguna poultry products and be assured that you are getting the best quality. What’s more, all this comes to you with Suguna’s quality backing and highest nutrition and hygiene guarantee. We welcome you to embrace the change. Welcome to Suguna Daily Fressh! 1.13 Institutional sales Suguna offers a wide range of innovative products to its consumers and its partners. Suguna recognizes the importance of the quality commitment of its institutional partners and is committed to deliver products of the highest quality. This commitment is further underlined with the implementation of HACCP (Hazard Analysis and Critical Control Points) systems. Suguna is well prepared with its state-of-the-art processing plant to meet the ever growing demand of its institutional partners. With a current monthly production of 1500 metric tons, Suguna is all set to launch additional processing plants to cater to the growing demand. This helps in providing institutional partners an advantage with continuous service availability along with cost and product quality benefits. Suguna’s innovative and popular products range from the best selling Daily fressh chilled chicken,Suguna Home Bites, Value added eggs like sausages, salami, stuffed turkey, galantines and Value added eggs to ready-to-eat chicken treats.
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Suguna’s layer farms across the country produce value added eggs catering to the health and wellness conscious consumer. The hens in the farm are fed with naturally enriched feed that contains various minerals and nutrients. These eggs are known for their high nutrition quality compared to other table eggs. As an innovative player in the poultry food industry, Suguna has launched a new category of home meal replacements - Suguna Home Bites and Suguna anytime - a range of ready to heat and eat chicken products. The recipes are created by expert chefs and are manufactured at Suguna’s own food processing plants. Suguna Home Bites and Suguna anytime are tasty and convenient for cooking. The expert recipes ensure every bite tastes right. These commitment levels to offer quality and innovative products have made Suguna a brand to reckon with.

1.14 Exports Being a pioneer in the poultry industry in India for more than two decades, Suguna has successfully made inroads into the international markets. Today, Suguna has an exceptional track record of exporting frozen chicken to countries like Saudi Arabia, Kuwait, Dubai, Oman, Bahrain, Afghanistan, Qatar and Japan. Partner with Suguna and you will experience that the products supplied are of the highest quality. With visionary leadership and scientific poultry management practices, Suguna has successfully incorporated global standards and is on par with all major international players. Needless to say, your demands will be met adequately with our efficient supply chain and a huge network of over 15,000 poultry farmers. Explore a little to know what Suguna has to offer that will keep your customers delighted with quality supply of frozen poultry meat. 1.15 Corporate social responsibility Ever since inception, Suguna has made social responsibility initiatives a major part of its core values. The social responsibility initiatives today reflect conscious efforts to transform the economic and social development of rural India.
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Energising rural India has been the vision that accompanied Suguna's growth. Every business activity undertaken has been and will always be linked to this vision. Suguna’s employees share this vision and contribute towards it actively. Another focus of Suguna has been re-planting lakhs of trees across the country to increase the green cover and help in soil restoration. Suguna has donated over 25 lakh saplings to governmental, non-governmental, and voluntary organisations, schools, colleges and general public. Taking forward the core values, a host of initiatives have been put into action. From instituting rewards to school toppers as part of educational programs, to providing aid for government schools and hospitals, Suguna is undertaking a wide range of socio-economic, environmental, educational and health initiatives. Improving the quality of life of employees, their families, as well as the local community and society at large is a promise that Suguna aims to fulfil in the long run. Since health is an important issue, Suguna believes in initiatives such as conducting motivational programs for children in orphanages, eye check-up camps, blood donation camps, and artificial limb donation.

2. Review of literature - A Review of the Chicken Chain By SafeFood - In early 2005, safefood decided that a review of the chicken food chain could bring clarity to a number of questions and consumer concerns surrounding the food safety and production methods associated with this commodity. The review also looked at the nutritional properties of chicken. 2.1 Background Safefood is undertaking two comprehensive food chain reviews over a three year period with the aim of:  Providing consumers with information to help them make informed decisions.  Helping consumers to understand how the food safety system works.  Promoting good practice along the food chain.  Chicken’s position as the main protein source for many consumers on the island of Ireland underlined the need for a review of the entire chicken food chain, from farm to fork.
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 The rationale for choosing chicken as the subject of this review was also based on safefood’s bi-annual consumer research survey, called safetrak.  The safetrak findings, contained in the report, emphasise the high awareness consumers have of chicken-related health and food safety issues. 2.1.1 The Chicken Food Chain - from farm to fork The island of Ireland enjoys a reputation as a leading producer of food. Our soil quality and production standards are regarded as reassurance to both the domestic and international consumer that the produce they buy is safe and nutritious and has been produced within a stringent framework of food safety controls. The island’s chicken production industry adheres to rigorous international standards. There are various levels of responsibility in this area. The Food Safety Authority of Ireland and Food Standards Agency Northern Ireland, provide the primary focus for all the public sector agencies involved in food safety regulation working in the Republic of Ireland and Northern Ireland, respectively. Their aim is to guarantee the integrity of the system in place for the processing, distribution and retailing of food. Along the food chain the role of inspectors, principally, veterinary personnel and environmental health officers, north and south, is to ensure that the legislation, both domestic and European, is being followed. It must be stated, however, that the responsibility for attaining the highest standards of safety in the chicken food chain, rests with the industry itself.

2.2 The Chicken Industry The chicken industry here is a highly developed, wellregulated and economically valuable industry. Chicken is an excellent source of protein with approximately 90% of all adults eating chicken regularly. Relative to other protein sources, chicken is readily available, versatile and good value. At farm gate the poultry industry on the island of Ireland is worth over €150m (Stg£101m) and Stg£120m (€177m) to the respective economies of the Republic of Ireland and Northern Ireland. There are a small number of key industry players, with eleven companies representing over 90% of all domestic broiler production on the island. Broilers are chickens reared specifically for consumption, as distinct from egg-laying hens.

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The chicken industry is highly integrated along the food chain ie: the main processors are also mainly responsible for breeding and rearing. The full report concludes that, while chicken is, in essence, a safe and nutritious food and is subject to considerable regulation, every opportunity to improve the processing chain should be taken by industry, to further enhance consumer confidence. 2.2.1 Research on Consumers and Chicken In September 2004 safefood commissioned research to identify the foods about which consumers were most concerned. Chicken registered as the food of main concern. From a base of over 1,300 consumers, over 40% indicated that chicken was the food they were “most concerned about in terms of how it is produced, packaged, sold in shops and handled in the home”. In comparison, the corresponding figure for turkey, despite the similarities in production, packaging and sale, was just 2%. Focus groups were conducted by safefood to further explore the reasons behind these concerns. From these focus groups, consumers disclosed that they did not want to be made aware of any issues with respect to chicken, which might “put them off”. Nevertheless, it is important that the consumer is informed of any hazards, so that they may take the necessary preventative steps to reduce the risk of foodborne illness. One of the recurring consumer concerns was connected with the country of origin of the chicken. Country of origin was reported as one of the major determinants during purchase. The naming of the producer farm or farmer on the label was noted to provide reassurance to consumers in terms of food safety. Consumers from both Northern Ireland and the Republic of Ireland were comfortable with purchasing chickens from anywhere on the island. County of origin was not, however, reported as a major determinant in the purchase of chicken-based frozen or ready meals. Labelling is another area which attracted consumer concern. Some aspects of the current labelling legislation is lacking, for example, there are no labelling requirements at the catering stage of the food chain. Currently more than 70% of all chicken meat used in the catering industry is not sourced from the island of Ireland or from the European Union. The full report also looks at other issues which were raised by consumers such as animal welfare and avian influenza. 2.2. 2 The Links in the Chicken Food Chain From a food safety perspective the overriding principle in the production of chicken is the safety of the consumer. Therefore, only poultry of the highest standards of safety should be placed on the market and those businesses involved at
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each link of the chain have primary responsibility for ensuring that those standards are met. In January 2006 a series of new food hygiene laws came into force under the term “the hygiene package” These new pieces of legislation affect all food business from primary producers (i.e. farmers), manufacturers, distributors, caterers and retailers. 2.3 Review on the Potential Global Retail Industry: Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K. Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. Retail is the second-largest industry in the United States both in number of establishments and number of employees. It is also one of the largest worldwide. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the world’s largest retailer. Already the world’s largest employer with over 1million associates, Wal-Mart displaced oil giant Exxon Mobil as the world’s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business. 2.3.1 The Indian retail sector The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organized sector represents only 2% share of this market. Most of the organised retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organised retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services.
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2.4 A study conducted by Fitch – Penetration of retail industry in larger towns & metro A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 3648 months. Fitch expects organized retail to capture 15%-20% market share by 2010. A McKinsey report on India says organized retailing would increase the efficiency and Productivity of entire gamut of economic activities, and would help in achieving higher GDP Growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%) and Poland (12%).

2.4.1 Different Forms of Retailing: Emergence of new formats of Retailing in India Hyper marts Large supermarkets, typically (3,500 - 5,000 sq. ft) Mini supermarkets, typically (1,000 - 2,000 sq. ft) Convenience store, typically (7,50 - 1,000 sq. ft) Discount/shopping list grocer Traditional retailers trying to reinvent by introducing self-service formats as well as  Value-added services such as credit, free home delivery etc.       The Indian retail sector can be broadly classified into:
      FOOD RETAILERS HEALTH & BEAUTY PRODUCTS CLOTHING & FOOTWEAR HOME FURNITURE & HOUSEHOLD GOODS DURABLE GOODS LEISURE & PERSONAL GOODS

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2.4.1.1 FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector. Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector .In comparison, super markets account for a small proportion of food sales in India. However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. 2.5 Review on Challenges of Retailing in India Retailing as an industry in India has still a long way to go. To become a truly flourishing industry, retailing needs to cross the following hurdles: • • • • • • • • Automatic approval is not allowed for foreign investment in retail. Regulations restricting real estate purchases, and cumbersome local laws. Taxation, which favors small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Intrinsic complexity of retailing – rapid price changes, constant threat of product Obsolescence and low margins.

2.5.1 Market Profile for Food Processing in India Market size and structure India has a very large range of geographical and climatic conditions and is one of the world’s major food producers, with the output of crops alone at more than one billion tons annually. India is also one of the largest producers of livestock, fruit and vegetables, milk, and other crops ranging from rice to sugar and oilseeds. While India has more than 115 million farms, more than 80 percent of these farms are less
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than two hectares in size. Large farms (over 10 hectares) make up just one percent of total farms, but account for 15 percent of all cultivated land.2 Food processing is the country’s fifth largest industry, representing 6.3 percent of GDP, and employing 1.6 million workers (2.3 percent of the workforce). Primary food processing constitutes around 60 percent of processed foods. The level of food processing varies considerable across sub-sectors. In the case of fruit and vegetables only two percent of production is processed, while more than 90 percent of non perishable products such as cereals and pulses are further processed. Even in this sector, however, processing involves very little value addition, and is mostly confined to grading, cleaning, milling, and packing; with negligible use of additives, preservatives, and flavors. The following shows how much levels of processing vary for key segments in the food processing industry5: • Fruit and vegetables (2.2 percent) • Milk and dairy (35 percent) • Meat (21 percent) • Poultry products (6 percent) The consumption of processed and prepared foods is low, and a large segment of the population still relies on subsistence foods, such as cereals, breads, pulses and edible oils. Foods are often purchased fresh and then prepared at home, leaving less scope for value addition, product differentiation and branding. However, in contrast, rapid change in consumer food habits and preference, particularly in urban India, are resulting in growing acceptance and popularity of processed, value added foods. A range of processed foods are now appearing on shop shelves. In October 2007, India’s Ministry of Food Processing and Industry released figures showing that exports from India’s fledgling processed food industry had climbed by 194 percent since 2003 to reach an expected US$13.9 billion in 2007. The figures also showed that processed food sales now account for an estimated 32 percent of India’s total food market, equivalent to a market value of US$69 billion. However, the ministry
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acknowledges that the domestic processed food industry still has a long way to go if it is to meet the India’s potential, given its size and natural resources. 2.5.2 Economist Intelligence Unit- Market highlights According to the Economist Intelligence Unit, personal disposable income in India rose by 12.1 percent a year between 2003 and 2007 in local-currency terms. With the rising disposable income of the growing middle class, there is increasing demand for convenient and hygienic foods, particularly in urban areas. As a result, the Indian food processing sector has seen significant growth, from seven percent in 2002-03 to 13 percent in 2006-07. This growth is forecast to continue, and food processors are introducing new products and updating traditional recipes using improved technology and innovative packaging. The Food Processing Industry is estimated to grow at 9-12 percent in the near future. Fruit and vegetable processing, which is currently around two percent of the total production is likely to increase to 10 percent by 2010, and further to 25 percent by 2025. According to a recent “Food and Beverages” survey conducted by the Federation of India Chambers of Commerce and Industry (FICCI), the segments which are expected to record high growth i.e. between 10-20 percent include: 2.6 Reach of the Sub sectors 2.6.1 Meat According to the Food and Agriculture Organization of the United Nations (FAO), India has one of the largest stocks of livestock, with a cattle herd of 178 million, and a buffalo herd of 99 million. Most animals in India are not bred for meat, with only 11 percent of the buffalo population, six percent of cattle, and 33 percent of the sheep population culled for meat. As a result, while meat production grew at an annual rate of 34 percent during the period from 1999 to 2004, it was still only worth US$12.4 million in 2005-06. 2.6.2 Poultry Poultry processing is still largely unorganized in India, and the poultry market centres largely on live birds. As consumers prefer fresh poultry meat, chickens purchased for home consumption are typically slaughtered in local
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markets. Apart from hotels and restaurants, little processed, chilled or frozen chicken is consumed in India. However, in recent years, there has been a significant change in the poultry business with the advent of large poultry producers such as Venkateshwara Hatcheries, Godrej Agrovet and Suguna Poultry Ltd. With the establishment of modern HACCP certified processing plants, processed chicken brands such as Venky’s, Godrej Real Good Chicken and Suguna are becoming popular in urban India. 2.6.3 Seafood India is the third largest fish producer in the world and second in in-land fish production. Currently fish processing is mostly targeted for export markets. There are over 369 freezing units with a daily processing capacity of 10,266 tonnes and 499 frozen storage units with a capacity of 134,767 tonnes. Seafood exports were worth US$1.5 billion in 2007, and the major products exported were frozen shrimps and prawns (55 percent of exports by value), and frozen fish (20 percent of exports by value). 2.7 The 2007-2012 Outlook for Children’s Chilled Chicken Nuggets in India 2.7. 1 WHAT IS LATENT DEMAND AND THE P.I.E.? The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if India is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The “market” is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability). The latent demand for children’s chilled chicken nuggets in India is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e.,
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not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a market. 2.8 Conclusion In order to estimate the latent demand for children’s chilled chicken nuggets across the states or union territories and cites of India, we used a multi-stage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, we heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a state or union territory, city, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across geographies, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the short-run (mostly based on cross-sectional data). The higher the income, the lower the average propensity to consume. This type of consumption function is labeled "A" in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated longrun consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data). This type of consumption function is shown as "B" in the figure below (note the higher slope and zero-zero intercept).ˇ the average propensity to consume is constant.
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RESEARCH METHODOLOGY 3. Need for the study Nearly 10% increase in the consumption of the poultry related products in the India year by year. Food processing is the country’s fifth largest industry, representing 6.3 percent of GDP. There is good potential for the growth of poultry sector in retailing business which currently consuited 6% in food processing sector. In recent years, there has been a significant change in the poultry business with the advent of large poultry producers such as Venkateshwara Hatcheries, Godrej Agrovet and Suguna Poultry Ltd and changing attitude towards chilled and frozen chicken helps the poultry industry to be more organized industry. 3.1 Objective 3.1.2 Primary Objective

To find the retail outlet reach of SDF retail outlets.

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(In7 Retail Outlet: 6 from Chennai & 1 from Pondicherry)

To know the buying behavior of the consumers of chicken. And to find how effectively the Promotional activities for SDF retail outlets and its products as reached the consumer. To study the important factors which are influencing the consumer to buy the chicken in particular outlet

3.1.3 Secondary objective

• • •

To find how for the brand “suguna” is influencing the consumer of chicken. To give suggestion to improve the ambience of SDF outlet based on the study & observation. To study the attitude of the consumer towards the chilled food & frozen food concept.

3.1.4 Setting of Hypothesis  There exist the relationship between the people who owns (2 wheeler, 4 wheeler & own house) and travels few meters from their home to buy the chicken.  There exist the relationships between the person who decides to when to buy chicken and who actually buys the chicken in the retail outlet.

3.2 Research

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The research is a set of organized activities to study and develop a model to find a realistic problem supported by literature and data such that its objectives are optimized and further to make recommendations for implementation. 3.2.1 Research Methodology The logical methods of carrying out a result are known as “Research methodology”. The first step in the research process is to identification of the research problem here the problem in this research is to identify the retail outlet reach of SDF to the consumer of the chicken in nearby location of the existing outlet of SDF.

Review of literature is the 2nd step in this process, for studying the attitude of the consumer towards chilled chicken & frozen chicken and the growth of the poultry retailing sector in various parts of India. Research design is the next step to review of literature, the researcher choose the survey research type for studying the retail outlet reach of the particular SDF outlet in seven various places in Chennai and Pondicherry. The researcher took great care for collecting the data. The data can be collected by the following two methods 3.2.2 Population method The researcher did not choose the population method for collecting the data because in population method, each and every one from that population is to be selected. It is not possible to conduct survey to the entire population in various locations of SDF outlets because collecting information from all consumers is a time consuming process, so researcher choose the sampling method. 3.2.3 Sampling method A representative part of the population is called a sample. The process of taking a sample is called sampling. Thus the researcher takes Minimum of a 50 sample each in all the seven locations and maximum of 150 if required to particular locations 3.3 Sampling techniques The two types of sampling techniques are  Probability sampling method
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 Non- probability sampling method

3.3.1 Probability sampling In probability sampling the samples are randomly selected from the population. It means that every element in the total population has an equal chance or probability for being chosen as sample. we have to define some basic terms. These are: • N = the number of cases in the sampling frame • n = the number of cases in the sample • NCn = the number of combinations (subsets) of n from N • f = n/N = the sampling fraction That's it. With those terms defined we can begin to define the different probability sampling methods. 3.3.1.1 Multi-Stage Sampling The simple, stratified, systematic and cluster are the simplest random sampling strategies used in most real applied social research, the researcher would use sampling methods that are considerably more complex than these simple variations. The most important principle here is that he combines the simple methods in a variety of useful ways that help us address our sampling needs in the most efficient and effective manner possible. When we combine sampling methods, we call this multi-stage sampling. 3.4 Research plan The research process depends upon developing the most efficient plan for gathering the needed information. Designing a research plan calls for decisions on the data sources, research approaches, research instruments, sampling plan, and contact methods. Our objective was to find the “To find out the retail outlets reach with in 2km. circumference of the SDF outlet and to take location survey for the business development”. This objective had made our project too narrow because from now onward our task was to find the idea of collect the sample from the population. 3.5. Collection of data The two types of data collection methods are  Primary data collection methods
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 Secondary data collection methods

3.5.1 Primary data Primary data collection comprises where, when and how often the response and their family member buy and consume chicken and it also helps to find awareness about SDF in their locality and other aspects which influence the buying behavior of consumer in other outlet. It was collected by conducting schedules 3.5.2 Secondary data Secondary data collection comprises of already existing data which can be used for the study, here researcher has used internet for collecting the company profile, the industry profile, review of literature for getting narrow view about the problem which is effectively used for the study 3.6 Sampling Plans:After collecting entire data and deciding on the research approach and instruments, now researcher had to decide on the sampling plan which was one of the important task, because from the bunch of people researcher had to select only few sample. There are three way of sorting the data. • Sampling Unit: - who is to be surveyed? And now my task was to take survey through scheduling method from the households in and around the circumference of 2 km from the SDF retail outlet in various location as mentioned early, which will be sampled from the number of people. Sample Size: - large sample give more reliable result than small sample, so for this reason researcher had taken around 750 people to whom researcher should focus upon for both retail outlet reach and business development. Sample Area:- The SDF which located in Pondicherry and six outlets in Chennai are the sample area for the researcher.

3.7 Contact Methods:3.7.1 Schedule: - This method was the most appropriate way of survey, because in scheduling the researcher can interact with the consumers of chicken and it helps to
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find the real facts of the SDF and other retail outlet. And what are the important factors that the consumer is looking for while buying chicken.  Observation schedule  Document schedule  Interview schedule

3.8 Tools used for the study  Chi-square test  One sample test  Percentage  Pearson -Correlation

3.9 Limitation  It is Difficult to meet the consumer in big apartments because of security/Watch man  Most of the female Consumers are not willing to engage for conducting survey in the absence of Male in the home.  Wrong Perception that researcher may be a sales person to the people in the house hold because of that they are not will to listen what he is trying to tell.  Some Vegetarian people are getting angry for conducting these types of survey.  It is Difficult to take survey during the afternoon time from 2.00 – 4.00 as most of the people are taking rest in their home  Most of the consumers are not ready to give their personal details especially their Mobile no., age if they are female, salary if they are working in government job or doing business.  Researcher used to skip or felt difficult to conduct survey the houses were pet like dogs are there.  Some customers are not willing to complete the full survey which leads to incomplete responses

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4. Analysis 4.1 Primary data Analysis The researcher collected the data through schedules and interview the responses given the customers are as follows Table 4.1- Number of people in the household Location Pondy Egmore Velachery Nungambakkam Anna Nagar Moggapair Villivakkam Total <2 10 1 8 4 6 9 8 46 3-5 30 39 32 41 33 107 72 354 6-8 5 7 6 5 4 17 12 56 <8 5 2 0 0 2 10 7 26 Missing 0 0 4 0 5 7 1 18

Graph 4.1 - Number of people in the household

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Inferences It is clear from the table that numbers of household in the families were between 3-5 which nearly contributes 70% and from graph it can be inferred that nungambakkam is highest and pondy is the least in the group of 3-5. Mogappair is the place where 10 families have a household of greater than 8. So Sdf should take care of Mogappair and Nungambakkam particular in order develop the strong customer base.

Table 4.2 - Gender of the person interviewed Location Pondy Egmore Velachery Nungambakkam Anna Nagar Mogappair Villivakkam Total Male 21 23 26 19 20 47 38 194 Female 29 27 24 31 30 103 62 306

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Graph 4.2 - Gender of the person interviewed

Inferences During the time of the scheduling and interview most of the sample who gave the response to the survey is the female. This also clearly shows that during the time of the survey most of the female only staying in the home. The approximately time is between 9 am-5 pm for conducting the survey in the household in and around the radius of 2km form the retail outlet in the particular locality.

Table 4.3 – Age of the respondents Location Pondy <17 3 18-25 6 26-35 9 36-45 15 46-60 11 >60 6 Missing 0

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Egmore Velachery Nungambakkam Anna Nagar Moggapair Villivakkam

3 0 4 4 10 12

8 3 6 8 30 10

15 16 6 9 45 23

8 10 18 20 29 23

5 9 4 5 26 18

8 7 5 4 12 14

3 5 7 0 8 0

Graph 4.3 – Age of the respondents

Inferences From the chart it is very clear that nearly 30% and 40%of the sample from the pondy and anna nagar respectively belongs to the age group of 36-45, in egmore nearly 30% of the sample belongs to the age group of 26-35. In villivakkam nearly 12 percent of the sample is from age the group less than 17.

Table 4.4 – combined income
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Location <Rs.5K 5-10K 10-20K 20-50K >50K Pondy 2 7 19 10 Egmore 2 7 20 6 Velachery 0 6 13 11 Nungambakkam 3 16 15 3 Anna Nagar 0 4 18 21 Moggapair 19 21 44 15 Villivakkam 12 28 22 11 Total

Missing 6 0 3 7 5 9 5 6 15 17 6 2 42 32

Total 50 50 50 50 50 150 100 500

Graph4. 4 - combined income

Inferences From the above chart it is clear that villivakkam and Mogappair as 12% of combined income less than 5000,where as Anna Nagar and velachery is not having any response in that category. Nungambakkam is highest which nearly contributes 62% of combined income of 5-20K. And Velachery is least in that group of the income. In Anna Nagar 52% of the people are belong to the income group of greater than 20k which is highest and it is potential area for these type of chilled and frozen foods.

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Table 4.5- Respondents relationship between Decision & Buying Chi-square test

Decide

Buy Missin g 5 0 0 59 5 2 71 Head 0 175 49 0 0 0 224 Childr Wife en 0 0 0 0 96 0 22 0 0 118 87 0 0 87 Total 5 175 145 168 5 2 500

Missing Head Wife Children Grand parents Other Total

Null Hypothesis (H0) : There is a significant between who decide when and where to buy the chicken with whom actual buys the chicken in the shop. χ
2

DF 15

LS 5%

6.98

The above table indicates that the computed value of χ 2 is 6.98.This is less than χ 2 table value of 24.996 with 15 degrees of freedom in 5% level of significant. Hence Null hypothesis (H0) is accepted Level of Significance : 5% Degrees of Freedom : (r-1) (c-1) = (6-1) (4-1) =15
2 χ

= = 6.98

∑ 

 (O −E) 2    E  

Calculated value 46

2 χ

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Table value

= 24.996

Inference Since the calculated value is less than Table Value, we accept Null Hypothesis and there is significant relationship between who decide when and where to buy with whom actual buys the chicken in the shop Table 4.6 -Average weekly consumption of chicken in percentage Place Pondy Velachery Nungambakkam Egmore Villivakkam Anna Nagar Moggapair < 1kg 64 52 46 38 47 54 48 1-2 kg 10 32 42 32 48 29 49 3-4 kg 2 4 6 6 2 4 1 > 5 kg 4 0 0 4 0 0 0 Missing 20 12 6 20 3 13 2

Inferences In Egmore 10% of the people are consuming more 3kg of chicken per week which is highest potential area based on the survey and observation by the reaseacher. In Mogappair 49% of the people are consuming 1-2kg of chicken per week which is highest in this category and in pondy 64% of the people are consuming chicken less than one kg in their family which is comparatively good sign for the improvement of the sales

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TABLE 4.7- Respondents relationship owning of (2 & 4 wheeler and own house which distance) with travelling distance for buying chicken. Chi-square test

Own Missing Missing 2 wheeler 4 wheeler Own house 128 TOTAL 185 0 248 20 0 37 <500m 0 245 3

Distance 500-1km 0 0 25 0 25 1-2km 0 0 17 0 17 34km 0 0 12 0 12 487 Total 20 245 94 128

Ho :- Distance is having significant with ownership of 2 wheeler,4wheeler and own house χ
2

DF 12

LS 5%

7.020

The above table indicates that the computed value of χ 2 is 7.020.This is less than χ 2 table value of 21.026 with 12 degrees of freedom in 5% level of significant. Hence Null hypothesis (H0) is accepted Level of Significance : 5% Degrees of Freedom : (r-1) (c-1) = (4-1) (5-1) =12
2 χ

=

∑ 

 (O −E) 2    E  

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Calculated value Table value

2 χ

= 7.020. = 21.026

Inference Since the calculated value is less than Table Value, we accept Null Hypothesis and there is significant relationship between Distance and ownership of 2 wheeler,4wheeler and own house Table 4.8- Number of sdf customer Sdf Customer 11 15 5 8 7 42 10 98

Place Pondy Egmore Velachery Nungambakkam Anna Nagar Moggapair Villivakkam Total

Graph 4.5- Number of sdf customer

Inference
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In Egmore nearly 30% of the sample are the customers of the sdf which is highest of all the locality and Mogappair is the second highest which contributes 28% in this category . Velachery and villivakkam is having only 10% of sdf customer which clearly show that reach of the outlet is poor when compared to other places. Table 4.9- Do you know about sdf Location yes no missing Total Pondy 23 13 3 39 Egmore 24 9 2 35 Velachery 24 17 4 45 Nungambakkam 20 20 2 42 Anna Nagar 26 15 2 43 Moggapair 73 33 2 108 Villivakkam 49 40 1 90 Total 239 147 16 402

Graph 4.6- Do you know about sdf

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Inference Nearly 68% of the non-sdf customer know about sdf in egmore and mogappair,60% of the non-sdf customer knows about sdf in pondy and anna nagar. In Nungambakkam and villivakkam nealy 48% and 45% of the non -sdf customers don’t know about sdf. And it clearly shows that reach about sdf is poor in these two area.

Table 4.10- Do you know location of closest sdf outlets Location Pondy Egmore Velachery Nungambakkam Anna Nagar Moggapair Villivakkam Total 51 Yes 12 14 14 5 15 43 12 115 No 11 10 10 15 11 30 37 124

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Graph 4.7- Do you know location of closest sdf outlets

Inference From the chart we can see the response of the non-sdf customers who knows about sdf. This is to find whether those people knows the nearest outlet in their locality or not. Nearly 54% from all over the places don’t know the nearest sdf outlet in their locality. Nearly 75% of the sample form villivakkam & Nungambakkam don’t know the sdf outlet in their locality. Mogappair outlet is having good reach when compared to other places here nearly 58% of the people knows the outlet in their locality.

Table 4.11- Have you visited - sdf

Location Yes No Pondy 4 8 Egmore 3 9 Velachery 8 6 Nungambakkam 3 2 A Study On Retail Outlet Reach & Business Development In Suguna Daily FresshPage Anna Nagar 5 6 52 Moggapair 15 20 Villivakkam 2 11 Total 40 61

Graph 4.8- Have you visited – sdf

Inference This is response from those who know the nearest outlet of sdf in their locality, here the percentage of people who visited the outlet in their locality is only 40% and almost 60% not yet visited the outlet. Many customer who dint not visit the outlet says they are getting fresh chicken near by their house itself , where as for getting chicken form sdf they have to travel a little bit and more over they prefer fresh chicken rather than chilled or frozen chicken.

Table 4.12- Does anyone you knows purchase from or visited sdf

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LOCATION Pondy Egmore Velachery Nungambakkam Anna Nagar Moggapair Villivakkam Total

Yes 6 11 13 7 12 39 13 101

No 30 35 33 42 37 94 75 346

Missin g 14 4 4 11 1 17 12 63

Graph 4.9- Does anyone you knows purchase from or visited sdf

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Inference This is question asked to the sample in order to find how far the consumer of the chicken getting chicken in a particular shop through word of mouth ,here nearly 68% of the people says that they don’t know about the neighborhood and relations whether they are buying in sdf are not. And 20% of the sample says they know the person who purchased from or visited sdf.

Table 4.13- Have you seen the advt. for sdf Location Yes No Pondy 21 11 Egmore 24 8 Velachery 17 6 Nungambakkam 20 12 Anna Nagar 22 19 Moggapair 49 38 Villivakkam 27 30 Total 180 124

Table 4.14 - Correlation among the various types of promotional activities Bus shelter .871 .759 1 .838 .963 .880 .728 Wall poster .825 .732 .838 1 .824 .744 .a

Tv Newspaper Bus shelter Wall poster Banner Leaflet Other

Tv 1 .679 .871 .825 .841 .916 .807

Newspaper .679 1 .759 .732 .777 .777 .a

Banner .841 .777 .963 .824 1 .863 .694

Leaflet .916 .777 .880 .744 .863 1 .827

Other .807 .a .728 .a .694 .827 1

Inference
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From the table it is very clear that various types of promotional activities like T.V, Bus shelter, Banner and leaflets are correlated with all the types where as Newspaper, wall poster is correlated expect others (other promotional activities not in the table) . TV is highly correlated with leaflet, Newspaper is highly correlated with both banner and leaflet, Bus shelter is highly correlated with Banner, wall Poster with bus shelter. Overall highest degree of correlation is between Banner & Bus shelter with is .963

Graph-4.10. Did you want to visit an sdf after seeing the advt.

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Inference

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From the chart we can see that nearly 59% of the sample are interested to buy the product after seeing the advertisement and it clearly shows that the promotional activities play a vital role for the brand suguna and it is also one of the influencing factor for buying chicken in the sdf outlet. Most of the customer says that they want to buy because of the quality and cleanliness which is being highlighted in the advertisement.

Table-4.16 One sample test- velachery Parameter Rate factors that are important for customer 13.261 23.383 18.575 18.379 16.029 15.383 16.697 14.271 Rate sdf Rate existing shop(if not sdf) 13.580 13.546 12.692 12.689 13.109 13.054 13.788 12.266

Price Quality Freshness Cleanliness Variety One roof Distance Ambience

2.234 2.319 2.324 2.319 2.293 2.293 2.271 2.295

Inference

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From the table we can clearly say that people in the velachery locality have rated quality is their most important factor which they look when they are buying the chicken and second is freshness ,cleanliness, distance, variety, one roof, ambience and price is the least important factor for buying the chicken. From the column three we can clearly says how the sdf customers have rated the sdf in various parameters. Here they have rated that sdf in all the parameters out of these freshness is most preferred one ,then quality & cleanliness, then ambience, variety and getting under one roof respectively and price is the least one. It shows that sdf have to adopt some pricing strategies in order to attract the customer. From the column four we can clearly says how the non- sdf customers have rated the shop where they are currently buying the chicken. It follows price, quality, freshness and the least is ambience.

Table 4.17- One sample test- Egmore Parameter Rate factors that are important for customer 20.868 48.041 77.180 49.000 22.542 26.076 16.002 12.934 Rate sdf Rate existing shop(if not sdf) 7.824 9.038 7.765 7.782 7.541 7.465 8.655 6.342

Price Quality Freshness Cleanliness Variety One roof Distance Ambience

4.310 4.285 4.365 4.314 4.201 4.201 4.350 4.319

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Inference From the table we can clearly say that people in the Egmore locality have rated freshness is their most important factor which they look when they are buying the chicken and second is cleanliness, quality, one roof, variety, price, distance and ambience is the least important factor for buying the chicken. From the column three we can clearly says how the sdf customers have rated the sdf in various parameters. Here they have rated that sdf in all the parameters out of these freshness is most preferred one, then cleanliness, quality, ambience respectively, variety and getting under one roof is the least one. It shows that variety and getting under one roof is not influencing most of the people to buy in sdf. From the column four we can clearly says how the non- sdf customers have rated the shop where they are currently buying the chicken. It follows quality, price, freshness and the least is ambience.

5. Findings of Retail Outlet Reach During the time of the project, form the observations and the collected data, the researcher able to find some Positive and Negative aspects related to the retail outlet reach in various location of the sdf outlets 5.1 Positive Findings – Pondy  Children play a vital role in decision making factors for buying the chicken, they nearly contributes 48% comparatively greater than head of the family which is 34% of the sample.  60% of the head of the families are actually buying chickens  20% of the sample sizes are the customers of sdf.  Nearly 50% of the people from the locality know about sdf.  Nearly 51% of the people from the locality know the closest retail outlet of sdf.(M.G road)  72% of the people have seen the advertisement of Sdf.
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 Advt. Through television had reached the heads and wife of the family mostly.  Quality is vital factor for nearly 90% of the sample.  Generally, Price is not having that much impact over buying behaviour of consumer for chicken (food) product.  Cleanliness & hygiene are the strength of the sdf as it is being the weakness of the competitor.  80% the sample will definitely buy and continue their buying if sdf is providing superior quality.  Nearly 75% of the samples are not interested in getting discount from sdf.  Loyalty card is accepted by most of the sample in generally as it is being the token of loyalty. 5.1.2 Negative Findings – Pondy  10% of the sample sizes are the customers from a single competitor (Nathan Chicken centre) from chinna kadai market.  Misconception between suguna chicken & sdf is there to the non customers of sdf.  Most of the non-customers of Sdf are not aware of chilled food concept and they need only fresh chicken because of wrong perception of frozen chicken 5.2 Positive Findings – Egmore  60% of the children are the decision making factor  30% of the sample size are the customer of sdf  It is the only place where 40% of the non-customer of sdf are purchasing chicken far than 1-3 km  28% of the sample knows the closest sdf  68% - seen the Advt.( 20% wants to buy after seeing the advt)
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 If superior Quality is provided sure – 56% of the sample will buy in Sdf  Freshness is most preferred one, then cleanliness, quality, ambience respectively, variety and getting under one roof is the least one. 5.2.1 Negative Findings – Egmore  86% - Needs discount  chicken is very soft in SDF  Because of the bad smell in the outlet 3 of the existing customer are not buying  Freshness is not there  Quality is not good  Researcher himself felt that the outlet ambience in the egmore is not up to the mark  It shows that variety and getting under one roof is not influencing most of the people to buy in sdf.  Misconception between suguna chicken & sdf is there to the non customers of sdf. 5.3 Positive Findings – Nungambakkam  42% of the sample consumes 1-2kg of chicken averagely per week  Nearly 50% of the non-sdf customers know about sdf  But only 20% of the them knows closest outlet  About 64% of the sample have seen the Advt. of sfd which clearly show that suguna brand is having good reach  Nearly 68% of the sample will sure buy if sdf is offering good quality with hygiene  Most of the sample prefer loyalty card which gives Buy for 5 times and get 250g free on your 6th visit 5.3.2 Negative Findings – Nungambakkam
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 6% - visited outlet { 12% - recommended }  Even though Nungambakkam is consider as a hot of the city reach of the reach of the sdf outlet is poor as only 11% of the non-sdf customer knows the nearest outlet  This is the place where nearly 22% of the others category buys the chicken from the shop, Most of the servants in this category are getting the chicken nearby their house itself 5.4 Positive Findings – Velachery  In Velachery nearly 44% of the children decides when to buy the chicken in their families  Nearly 72 % of the sample are degree holders in this locality (36% Both P.G &U.G respectively)  Almost 54% of the sample is the employee which most of them are well paid and they are earning more than 20000 Rs.  Only 10% - sdf customers( they are well satisfied with sdf)  Almost 48% of the sample know about sdf and 28% - closest outlet  Quality is their most important factor which they look when they are buying the chicken and second is freshness, cleanliness, distance, variety, one roof, ambience and price is the least important factor for buying the chicken.  Reach of the brand suguna through Newspaper is high when compared to all the place. 5.4.2 Negative Findings - Velachery  Distance plays a main role as nearly 76% prefers to buy within 500m from their house  Consumption of chicken is very low in this area as nearly 52% of the sample consume less than 1 kg in a week  More number of Non-veg customer are living in this area

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5.5 Positive Findings – Anna Nagar  Reach of the outlet is good reasonable good when compared other as it is being on of the oldest sdf retail outlet in Chennai  Ambience is good  22% are the customer of sdf 5.5.1 Negative Findings – Anna Nagar  Egg are not available in the outlet  Some Customer is not finding any difference between ordinary egg and value added egg. 5.6 Positive Findings – Villivakkam  Nearly 50% of the sample are having own house and 48% owns 2 wheeler  Sample from Sidco Nagar and Aagathiyar Nagar requires free home delivery 5.6.1 Negative Findings – villivakkam  0nly 6% - sdf customer  Product like boneless, lollipop are not available in outlets most of the times  Some of the customers are saying that Marinated products are not up to the mark  Very good potential area like Sidco Nagar and Aagathiyar Nagar are located 1.5km from the retail outlet 5.7 Positive Findings – Mogappair  This branch is having highest number of customer and as nearly 32% of the sample and most of the them are the regular buyer from sdf  70% of the sample are earning more than 10,000 Rs  Reach of the sdf is very good as 70% and ( 66% of them knows through Advt)  Nearly 36% of the sample knows closest outlet in their locality
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 Promotional actives like Banner , leaflet and wall poster as a good reach when compared to other places

5.7.1 Negative Findings – Mogappair  Misconception between suguna chicken & sdf is there to the non customers of sdf.  During Sundays and other festival days service time is very slow  Nearly 48% consume chicken of less than 1kg in a week  62% of the sample prefer to buy chicken within 500m from their home

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5.8 Suggestion  Promotional activities should reach the children as they are being the decision making factor in when and where to buy the chicken. Especially those leaflets, pamphlet and television advertisement should attract the children.

 Direct price discount should be avoided as it is being not liked by nearly 80 % of the head and wife in the families

 Sales men should be trained well and proper dress code should be maintained well during the working hours.

 Some discount can be given in the festival days in order to attract more customers but care should be taken that people should not think that sdf comprises on the quality of the product.

 Local channel Advt. Should be improved for the affective reach of the outlet.
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 Mobile van can be used to attract more customer as distance is being the most important factor for most of the people.

 As most of the sample consuming chicken mainly on Sunday and festival days bulk free home delivery can be used to improve the customer base from the locality.

 For loyalty customers, service should be very good in order to retain them.

 Quick services should be there particularly on Sundays, so extra persons can be recruited for Sundays alone in order to serve fast.

 Sponsorship can be given to educational institution for cultural program etc and food stall can be opened during that time in order to promote the brand and it also helps to generate revenue from it.

 Customized menu can be prepared to attract the customer for preparing

the varieties of dishes. Tie ups with the big hotels & restaurants will help to increase the sales.

 Care should be taken to improve the ambience in egmore outlet particularly  Demand – supply should match for all the products in sdf particularly in villivakkam as lots of people are complaining that products are not available.

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 Loyalty card may be used to get more customers as most of the sample prefer than direct price discount and offers

 During the time of starting new outlet in the cities viral Marketing helps to give wide publicity about the outlet

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5.9 Conclusion Hence setting of the Hypothesis is proved  There exist the relationship between the people who owns (2 wheeler, 4 wheeler & own house) and travels few meters from their home to buy the chicken.  There exist the relationship between the people who decides to when to buy chicken and who actually buys the chicken in the retail outlet. Suguna poultry group which as plunged in to the chilled and frozen chicken retailing business in various metro in the southern states of the India, one and half year back in the name of Suguna Daily Fressh with various chilled & frozen chicken products as captured the market share of nearly 19% in Pondicherry and six outlets in Chennai.

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The important factor which nearly 90% of the people looking for when they are buying chicken is quality, freshness and cleanliness respectively. The brand suguna is having good reach in all the location where the survey has been taken by the researcher.

Retail outlet reach of sdf is high in both Mogappair and Egmore, Promotional activities through T.V advertisement help a lot in reaching the brand for various classes and all age groups of the people. As children are the deciding when to buy and where buy chicken in most of the houses, proper promotional activities and strategies should be adopted in order to attract children and awareness about the concept should be given to the consumer of the chicken.

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Bibliography 1. 2 3 4 6 Kothari C.R (2002): New Delhi. ‘Statistics for Management’, Limited, of ‘Research Methodology’ Wishwa Prabakaran,

Richard I. Levin, David S. Rubin (2002): Philip Kotler (2003): ‘Marketing

Prentice Hall of India Private Limited, New Delhi, and 7th Edition. Management’, ‘Indian Pearson Journal Singapore, and 11th Edition. Mrs. Gilani (April, May, September 2004): MARKETING’, Print India, New Delhi. John Pribble III , Research scholar, Cambridge University

Webliography www.sugunapoultry.com www.mouthshot.com www.poultry.com www.socialresearch.com www.rai.com www.google.com www.spss.com

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