Marketing Management -I Project Report

Branded Cooking Oils
Section C Group-III Ganesa Kumar K V Happy Saini Harshit Krishna Himanshu Kumar Rohan Gala Uday Mehta Vinay Kumar Juluri
19-04-2012

0128/48 0137/48 0143/48 0147/48 0127/48 4035/18 4040/18

Industry Introduction
• Low-margin and high-turnover industry • Steady growth of around 4.5% • Per capita consumption:  Current levels-13.5 - 14 kg.  World average - 24 kg • Raw oil-35%, Refined oils-55% & Vanaspati-10% • Branded oil industry is growing at rate of 20% • Major brands: Sundrop, Nutrela, Dhara, Saffola, Sweekar, Nature Fresh • Major Oils: Palm oil - 46%, Soya bean oil - 16% and mustard oil 14%
19-04-2012 Marketing Management Project Report 2

Marketing Survey 19-04-2012 Marketing Management Project Report 3 .

Objectives • Key factors affecting consumer buying behavior • Analyze the interaction between these factors • Derive conclusions that a marketer can use Methodology Survey conducted under two broad categories: • Customers (income based segmentation)  Lower middle class (LMC)  Upper middle class (UMC) • Shopkeepers 19-04-2012 Marketing Management Project Report 4 .

Questions for consumers • Specific brand preferences • Reasons for choice of brands • Brand Loyalty Questions for shopkeepers • Influence on consumer buying behavior • Buying pattern and SKU preferences 19-04-2012 Marketing Management Project Report 5 .

Customer Analysis 19-04-2012 Marketing Management Project Report 6 .

We shall cover Customer Perceived Value Customer Satisfaction Factors influencing Consumer Behavior Decision Makers Determination Determination Buyers and Users Personal Analysis Enhancement Influencers Social and Cultural -> Observations and Explanations approach 19-04-2012 Marketing Management Project Report 7 .

Purity.1 Customer Benefits 1. Customer Perceived Value 1.1.Functional (Taste.Psychological (Health Benefits) High Income 2.Economic (Prices) 19-04-2012 Low Income Marketing Management Project Report 8 . Quality) Increasing Importance 3.

1.2 Most Valued Attributes Upper Middle Income Lower Middle Income 7% 31% 5% Traditionally Used Health Benefits 42% 17% Taste & Quality Price 47% 31% 20% 19-04-2012 Marketing Management Project Report 9 .

3 Value Analysis • UMCs placed constant importance on particular attributes over time. but changed brands to fit their criteria the best as per their lifestyle • LMCs as they grew in income shifted the amount of importance they laid on individual product attributes Must be constantly monitored 19-04-2012 Marketing Management Project Report 10 .1.

2.1 Total Customer Satisfaction • High rate of repeat purchase: Retention difficult without constantly meeting expectations • Attributes observed in decision making: Tangible and Intangible • Difficult to portray superiority in terms of Intangible benefits Focus on Marketing Expectations Performance ? 11 19-04-2012 Marketing Management Project Report .

but many also willing to shift to a better value offering 19-04-2012 Marketing Management Project Report 12 Constantly Improve Value Proposition . loyalty • Most consumers long term users of particular brands.2 Customer Loyalty and Retention • Very competitive market • High Customer Retention indicates Satisfaction and hence.2.

2.3 Customer Loyalty and Retention Years since change of Brand 6% <1 1 to 2 29% 25% Maybe / Will test once No 46% Would switch to better Value Offering 8% 39% Yes 2 to 5 47% >5 19-04-2012 Marketing Management Project Report 13 .

Decision Makers • Buyers and Users  Users of Cooking Oil (usually homemakers) principally decide type. senior citizens) influence which product attribute gets priority in buying  Older members: Health Benefits more important. to some extent brand  Buyer (in some cases the earning member) final decision maker at point of sale. affects choice of brand to some extent • Influencers  Other family members (children.3. Children: Taste more important 19-04-2012 Marketing Management Project Report 14 .

4. Other Factors Influencing Consumer Behavior • Personal Factors  Economic Circumstances  Age and Stage in Life Sources of Information • Social and Cultural Factors 22% 7% • Sources of Information 7% 64% TV Magazine Word of Mouth Point of Sale 19-04-2012 Marketing Management Project Report 15 .

Preferred Cooking Oil Brands Others 3% Engine 6% Upper Middle Income Fortune 13% Emami 6% Saffola 36% Sundrop 23% Nature Fresh 13% Refer to Exhibit 6 19-04-2012 Marketing Management Project Report 16 .

Preferred Cooking Oil Brands Others 3% Lower Middle Income Engine 20% Saffola 14% Nature Fresh 9% Fortune 17% Sundrop 34% Emami 3% 19-04-2012 Marketing Management Project Report Refer to Exhibit 6 17 .

Marketing Mix .

Marketing Mix Variables .1 • Product  Value  Stock Keeping Unit  Quality • Price  Product Quality Pricing  Lower quality oils  branded. higher quality oils  Value Pricing  Brands offering similar benefits are priced differentially Marketing Management Project Report 19 19-04-2012 .

 Modern retail stores Every SKU & variant of oil is present • Promotion  Special offers  Advertising 19-04-2012 Marketing Management Project Report 20 .Marketing Mix Variables .2 • Place  Kirana stores. retail shops & wholesalers.

Thank You 19-04-2012 Marketing Management Project Report 21 .

Questions 19-04-2012 Marketing Management Project Report 22 .

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