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RETAIL PENETRATION

AND BRAND RECALL STUDY

AT

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Introduction to projecty Retail Penetration study

y Company enters a retail market with existing products

y Set of consumers buying a companys product in the retailmarket

y To find out the brand being sold most by retailers

y Brand Recall study

y The extent to which the brand is recalled as a member of abrand, product or service class

y To determine buying preferences and level of brand

awareness by analyzing the brand recalls

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Company profiley Adani Wilmar Limited (AWL), a Rs. 3200 crore company; is a

joint venture between two global corporations.

y TheAdani Group of India - the leaders in international trading

& private infrastructure.y The Wilmar International Limited of Singapore - agri-business

group and leading merchandiser and processor of edible oils.

y TogetherAdani Group and Wilmar Group have set up India'sfirst port based refinery in 1999, at Mundra, Gujarat.

y Mundra refinery - one of India's largest and most sophisticatedoil refineries.

y FORTUNE, RAAG and JUBILEE are the brands under whichAWL sells its range of edible oil, vanaspati and bakeryshortening.

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CONTDy In addition to Mundra refinery,AWL also owns refineries at

Bundi [Rajasthan], Haldia [West Bengal] and Mantralayam[Andhra Pradesh]. Its cumulative refining capacity is more than

3200 Tonnes Per Day (TPD).y The company also has packing operations at Chatral

[Gujarat], Latur [Maharashtra], Jaipur [Rajasthan], Dharwad[Karnataka], Dewas [Madhya Prades] and Cochin [Kerala].

y With 80 branches, 5000 distributors catering to 1 millionoutlets,AWLs products reach to 20 million households acrossIndia.

y Since its launch in 2000, Fortune took just 20 months tobecome Indias No.1 edible oil brand.

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Abouty FORTUNE IS the brand under whichAWL sells its range of

edible oil.

y Since its launch in 2000, Fortune took just 20 months to

become Indias No.1 edible oil brand.y FORTUNE oil is available in foll: variants :

y Soya Health(Soyabean oil)

y Sunlite(Sunflower oil)

y Cotton Plus(Cottonseed oil)

y Goldnut(Groundnut oil)

y Kacchi Ghani Pure Mustard oil

y Pure Groundnut

y Pure Mustard oil

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Scenario of edible oil industry2004 2010 2015

Total Demand (Mln. Tonnes) 10.9 15.6 21.3

TotalArea under Oilseeds (Mln.

Hectares) 23.4 28 32

Yield (Tonnes/hectare) 1.07 1.2 1.4

Production of Oilseeds (Mln.

tonnes) 25.1 33.6 44.8

Domestic supply of edible oils (Mln.

tonnes) 7 10.1 13.4

Total edible oil imports - (Mln.

tonnes) 4.3 5.9 8.3

Imports as share of demand 39.40% 38.10% 39.50%

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RESEARCH METHODOLOGY

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Research Objectives

y To understand and explore the retail level penetration of

Fortune oil and its competitor brands.y To observe the distributor services and retailer satisfaction

regarding the services.

y To explore the perception and preferences of customers

regarding various edible oil brands.y To identify the awareness level among consumers of the

FORTUNE brand.

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Research Plany Data Sources :

Primary Data : Survey and InterviewSecondary Data : Internet, Newspapers and

Company sources

y Research Design : Exploratory and Descriptive

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CONTDy Research Instrument : Questionnaires

y Sampling plan

y Sampling unit : Retailers and Housewivesy Sample size : 300 retailers and 200 housewives

y Sampling procedure : Convenience and

Snowball sampling

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DATA ANALYSIS

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Overall Edible oil Penetration

Fortune

10% Gemini10%

Tirupati35%

Rajmoti30%

Saffola

1%

Ajey3%

RRO1%

Dalda3%

Tez3%

Uday1% Sundrop

3%

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Fortune Variants

Fortune Soya18%

Fortune Sunflower27%

Fortune Mustard17%

Fortune Groundnut15%

Fortune Cottonseed23%

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Sunflower oil penetration

Fortune43%

Gemini40%

Sundrop13%

Saffola4%

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Soya bean oil penetration

Fortune79%

Champion3%

Dalda5%

day2% Gemini

3%

Kargil1%

Dhara1%

Tirupati5%

Paras1%

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Mustard oil penetration

Fortune

38%

Dalda18%

RRO4%

Tez17%

Ajey14%

day6%

Pakwan3%

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Groundnut oil penetration

Fortune16%

Rajmoti

84%

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Cottonseed oil penetration

Fortune20%

Tirupati80%

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Brand Recall - Analysisy Relation between Income and Usage

y Chi-square test

Chi-square calc. > Chi-square Theor.

Thus usage is dependent on income

Calculated Theoretical df Significance

Pearson

Chi-square

58.452 37.65 25 0.000

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CONTDy Relation between SEC and TOM

y Chi-square test

Chi-square calc. > Chi-square Theor.

Thus TOM is dependent on SEC

Calculated Theoretical df Significance

PearsonChi-square

70.718 31.41 20 0.000

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Findings Retail Penetrationy Unnecessary allocation of more than one distributor in small

town like Valsad

y

Dominance of the market by local brandsy Weak promotional activities in small towns

y Low margin gained by the retailers

y Curbing of the brand by retailers

yComplaints by the retailers in the selection of distributors

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Recommendationsy Allocation of more than one distributor should be avoided

y Strengthening up the distribution network in small towns

yGlow sign boards and other sales promotional materials to beallocated to retailers

y Creating special shelf spaces for FORTUNE in the store

y Proper communication by the company regarding the new

offers to the retailersy Adoption of uniform pricing policy

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Findings Brand Recally Consumer awareness limited to higher income groups

y Market Dominance of competitive brands creates an

impact on brand recally Unavailability of brand in certain potential areas

y Low promotional activity in small towns

y Consumers perception of FORTUNE as an expensive

brand

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Recommendationsy Display of print ads, banners, hoardings in small towns

y Organizing road shows

y Consumer oriented scheme to be targeted to the actualusing person i.e. Housewives

y Segmentation of consumers according to income groups

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Thank You