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SUMMER INTENSHIP TRAINING REPORT OF STERLINGS COCONUT OIL &CAKES
(P) LTD
submitted in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY (CHENNAI)
BY
RESHMI MOHAN
under the supervision of
RVS INSTITUTE OF MANAGEMENT STUDIES
(COIMBATORE)
1
DECLARATION
I here by declare that this project entitled " SUMMER INTENSHIP TRAINING REPORT OF
STERLINGS COCONUT OIL &CAKES (P) LTD" submitted to ANNA UNIVERSITY
(CHENNAI) in partial fulfillment of the requirements for the award MASTER OF BUSINESS
ADMINISTRATION is a record of original work done by me under the guidance and supervision of
i also declare that this project has not been submitted to any time to any other university or
institution for the award of any degree or diploma.
RESMI.MOHAN
2
ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude, my wholehearted thanks and my
profound respect to all those who guide and inspired me in the completion of this project work.
With most sincerity extend my thanks to God who give me the opportunity to do this project and his
unfailing support through out the project period.
I owe my sincere thanks to .................................. for supporting & encouraging me through out the
report and his consistent advice & guidance for the successful completion of my project.
I have immense pleasure to expert genuine gratitude to Mr. FAIJU V. RAPHAEL,(marketing-
director) & other staff member of sterling coconut oils &cakes (p) ltd.
RESMI.MOHAN
CONTENTS3
DESIGN OF THE STUDY (CHAPTER 1) 7
Introduction 8
Statement of the problem 9
Scope of the study 11
Objective of the study 12
Limitations of the study 13
RESEARCH METHODOLOGY (CHAPTER 2) 14
Review of literature 17
COCONUT A HISTORY (CHAPTER 3) 21
STERLING COCONUT OIL & CAKES(P)LTD – A PROFILE (CHAPTER 4)
26
FUNCTIONAL AREAS ( CHAPTER 5) 37
DATA ANALYSIS & INTERPRETATION (CHAPTER 6) 41
Swot analysis of Thanima segment 44
Findings 57
Suggestions & recommendations 58
Conclusion 62
LIST OF TABLES
4
TABLE.NO TITLE PAGE.NO
1 FAMILIARITY OF THE BRAND NAME THANIMA 45
2 BRAND PREFERENCE 47
3 THE QUALITY NORMS OF THE CUSTOMERS 49
4 INTRODUCTORY OFFER SCHEMES 51
5 THE PLACE OF PURCHASE 53
6 THE EFFECTIVE TOOL OF ADVERTISEMENT 55
LIST OF DIAGRAMS
5
FIGURE .NO
TITLE PAGE.NO
1 FAMILIARITY OF THE BRAND NAME THANIMA 46
2 BRAND PREFERENCE 48
3 THE QUALITY NORMS OF THE CUSTOMERS 50
4 INTRODUCTORY OFFER SCHEMES 52
5 THE PLACE OF PURCHASE 5
6 THE EFFECTIVE TOOL OF ADVERTISEMENT 55
6
CHAPTER.1
DESIGN OF THE STUDY
Introduction
The organization study undertaken as a part of the curriculum was done at “The Keramitra (p) ltd.
This study provides an opportunity to expose the students to an industry / organization and its
operational conditions. This study also aims at having a better understanding of various
7
departments and its functioning. This report consists of a detailed study of the history of the
company, product profile, organizational hierarchy, various departments and their functioning etc.
This study proved to be fruitful by familiarizing us to the organization and at the same time it also
helped us to create practical awareness.
Sterling Coconut Oils & Cakes (P) Ltd. Thrissur, popularly known as‘Thanima’ is a private
enterprise. Thanima was established with an objective to produce, supply and export fresh and
pure coconut oil. The company strictly follows the quality standards prescribed by AGMARK and
ISO 9001:2000 Certification to take on the challenges of globalization and international quality
standards. Thanima focused on a stable and reasonable return to their produce by integrating the
activities of production, processing and marketing. They converted coconut, into value added
products like copra and coconut oil and marketed it. There is better satisfaction emphasis is that
better the marketing, better the return to the company to consumers. Coconut oil is extracted from
the kernel or meat of matured coconut harvested from the coconut palm (Cocos nucifera). It has
various applications in food, medicine, and industry. What make coconut oil different from most of
other dietary oils are the basic building blocks or fatty acids making up the oil.
Being one of the healthiest oilson earth, it is used to treat a wide variety of health problems.
Coconut oil improves immune system and energy level, stabilize blood sugar, improve thyroid
function and it tastes great, too.
Statement of the problem
In today’s competitive environment companies are realizing that marketing is not only the voice of
the company but also tool with which information feedback can be collected from the consumers for
8
the marketers. It is important to recognize why and how individuals make their consumption
decisions, Thanima is facing stiff competition from other major brands such as KPL Shudhi oil,
Kera etc. Hence in order to adopt new marketing techniques for increasing sale it is desirable to
study the preference of customers towards coconut oil.The changing food habits and consumer
preference of Keralities have new opportunity for the marketing of coconut oil in the Kerala state.
People may not think much about branded coconut oil vs. unbranded one as they are not aware of
it or they feel that it’s of high price. But once they experience the quality of the branded product,
they will be converted. There are many advantages the branded coconut oil have over unbranded
one – good quality, better packing, healthier, avoiding refined carbohydrates, increased keeping
quality and consuming whole foods etc .The household consumers of Kerala are not only health
conscious but also price sensitive. The propensity among the consumers to shift from the
consumption of coconut oil to other edible oils is high when coconut oil price rise above the price of
other edible oils. Being a product of Kerala itself, Sterling Coconut Oil Cakes & Mills(P) Ltd., have
the responsibility to take adequate measures to sustain and promote the household consumption
of coconut oil. The study explored the product related attributes (fragrance, flavor, durability etc)
and market related attributes (price, size, package, availability, etc) of coconut oil in order to
provide adequate insight for taking future decisions by Thanima.
However the marketing of coconut oil in the state still remains less studied. Some case studies are
mentioned here.“Price behavior of major edible oils consumed in the households of Kerala and
promotional strategies of Coconut Development Board”. The study found that there are fluctuations
in the prices of coconut oil, palm oil, and sunflower oil. Due to various external factors like changes
in the world production and demand of these oils, changes in the climatic conditions in the
producing countries and internal factors namely import duty charged by the government, production
9
of oil seeds etc. “Consumer’s preference towards branded coconut oil”. The study has identified
that the consumers give more importance to the quality of coconut oil, which is the main reason
why they prefer branded one. Brand awareness among the consumer were also found fairly high,
but limited to the geographical availability level.
RESEARCH METHODOLODY
Research methodology is the only way to systematically solve the research problem along with the
logic behind them. The research methodology includes why the research has been undertaken,
how the hypothesis, if any has been defined, what data has been collected and what particular
methods has been adopted. So, by framing a right methodology it is possible to gain a deeper
insight into the research problem and also it gives a full proof action plan for carrying out the project
effectively.
Sample design
The supermarkets in Thrissur City area can be grouped as:
i. Small and medium Super Markets having floor area of less than 2000square feet
ii. Large Super Markets having floor area of more than 3000 square feet
10
There are total 60 super markets in Thrissur District (Sourcehttp://www.thrissurkerala.com/).
Out of this, 10 supermarkets are coming in the group of large/major supermarkets. This study
was carried out in all these 10 major supermarkets in the Thrissur City area.
Data collection
Both primary and secondary data were collected for the study.
Primary data
Primary data for the study was collected through interview with the help of prestructued schedule.
Data on family details, income, education status, coconut oil consumption, purchase pattern of oil,
etc. were collected.
Observations made
• Socioeconomic profile of respondents
• Expenditure pattern
• Brand awareness
• Impact of Thanima’s promotional efforts on consumer’s demand
• Quality, Price of coconut oil
• Brand loyalty and switching
• Product attributes.
11
• Currently used brand
• Reference groups like, friends, peers, relatives, etc
• Segmentation of consumers into each income group
Study period
The study is based on primary data collected from sample respondents using a prestructured
schedule. The study was carried out during the period of July to December 2012.
secondary data
The secondary data was collected from the published sources such as reports, journals,
periodicals, Internet and other Medias.
REVIEW OF LITERATURE
1) Amit P. Pratab argued that coconut oil is primarily used for edible purpose and also for hair oil. It
is an important source of intermediates like fatty acids. Glycerol and fatty acids, which are used for
the manufacture of wide range of chemicals such as surfactants, emulsifiers, foam booster etc.
These intermediates are used in the formulation of several finished products like soaps, detergents,
and shampoos. Glycerol is used in lot of cosmetics formulations. Palm kernel oil is also has a
similar fatty acid profile. It could be used for the manufacture of all the coco based chemicals.
12
However, the coco based products are preferred due to their characteristic odor and mind set of
people (Pratab, 2009).
2) Bhattacharya in their study on “Putting the customer trust” observed that given the rising
demand of customer as well as increasing competition, the need of the hour is to gear itself
positively to the needs of its customers. This would mean rendering the service in an efficient and
effective manner. (Bhattacharya, 1991).
3) According to Balachandran, S in his study on “Customer driven services and management”, for
the same level of service rendered, some customers may be very satisfied depending upon
perception of experience and expectations. Expectations are based on what one has heared from
others, seen in advertisements, its external appearance or what one has been made to believe by
the sales man. (Balachandran, 1999) .
4) Bal Subramanian and Sathyanarayanan explained in their study that the success of any business
lies in maintaining a strong base of loyal costumer. The organization exists for the customers and the
customers are the deciding forces behind the success or failure of a business organization. (Bal
Subramanian and Sathyanarayanan, 2008).
5) Carlo Lovatelli, in his study on “Good potential for using vegetable oils as biofuels” stated that the
potential for using vegetable oils such as Palm oil, and soyaoil as biofuels is increasing considerably
as the petroleum crude price will continue to rule high. “Petroleum price increase tendency is a
strong indication that biodiesel should become more competitive over the next few years” said
Lovatelli in his presentation on “Vision 2020 -Soya”. Various countries such as Malaysia, USA and
13
Brazil are investing heavily in research to gradually make this bio fuel as an alternative to crude oils.
(Lovatelli, 2005).
6) Davish Janin argued that, in a short span of 30 years, India has emerged as the world’s fourth
largest oil seeds economy next only to USA, Brazil and China. The note is that the Indian oil seeds
ad edible oil sector performed well last year. The seed processors of soya been, sunflower, cotton
seed etc have had reasonably good margins .The oil processor also had good processing margins
as price went up (Janin, 2000).
7) Devendra Arora and Loveleon Gavr stated that customer relationship management is a business
strategy to acquire and retain the most valuable customer relationship. It is estimated that the cost of
acquiring a new customer is four times the cost of retaining the existing one. The core concept
behind marketing is the role of exchange. Exchange can take place between buyer and seller and
also not limited to money. (Devendra Arora and Loveleon Gavr 2006).
8) Dipak Kr Ghosh and Arpitha Ghosh suggested that coconut oil is more beneficial to human body
as a dietary fat than the natural or hydrogenated form of unsaturated vegetable oil. The incidence of
coronary heart disease could be better linked with the consumption of cholesterol rich food of animal
origin and these dentary habits associated with a tension ridden mechanical society. (Dipak Kr
Ghosh,and Arpitha Ghosh, 2008).
9) Elumalai pointed out that Brand strategy is an intimate aspect of product planning. A marketer
has to decide which products to be branded, how to brand them and how to manage the Brands. In
developing a brand the manufacturer has to establish the Brands quality levels and other attributes
that will support the brands together position in the market place. (Elumalai, 2003).
14
10) Windisch opined that the last two decades have seen a substantial increase in the use of
aromatic herbs and essential oils as feed additives in animal nutrition. One of the main reasons for
this trend is to substitute antibiotic growth promoters, which have been completely banned as feed
additives in the European Union since 2006 because they are suspected of contributing
substantially to increasing resistance among human pathogens. Recent investigations have shown
significant antimicrobial effects of several essential oils and essential oil compounds against enter
pathogenic organisms in farm animals. Porcine proliferative enteropathy caused by specific
Escherichia colistrains could be controlled by in-feed application of carvacrol-rich essential oils, and
the effect of some essential oil components against clostridium perfringens and necrotic enter it is
was confirmed in poultry. In ruminants, an improvement of the digestion was observed, resulting in
reduced methanogenesis and nitrogen excretion. In addition, the anti oxidative activity of aromatic
plants and essential oil compounds contributes to the stability and palatability of animal feed and
has, moreover, resulted in an Improved shelf-life and quality of animal products, due to reduced
oxidation. The 'growth- promoting effect' of essential oils (feed conversion rate, daily weight gain,
etc.) is not as evident, since a large number of publications are (commercial) product-driven, lacking
data on the starting material (Windisch, 2010).
15
COCONUT A HISTORY
16
The English name coconut , first mentioned in English print in 1555, comes from the Spanish and
Portuguese word coco, which means "monkey face." Spanish and Portuguese explorers found a
resemblance to a monkey's face in the three round indented markings or "eyes" found at the base
of the coconut. On the Nicobar Islands of the Indian Ocean, whole coconuts were used as currency
for the purchase of goods until the early part of the twentieth century. Coconuts are the fruit of the
coconut palm, botanically known as ‘cocosnucifera, with nucifera meaning "nut-bearing." The fruit-
bearing palms are native to Malaysia, Polynesia and southern Asia, and are now also prolific in
South America, India, the Pacific Islands, Hawaii and Florida. The light, fibrous husk allowed it to
easily drift on the oceans to other areas to propagate. In Sanskrit, the coconut palm is known as
kalpa vriksha, meaning "tree which gives all that is necessary for living," because nearly all parts of
the tree can be used in some manner or another. The coconut palm can be found as far as Norway
in the north, where the people have for centuries ensured that the seed germinates under the right,
'created 'conditions. It is believed that the fruit and palm made their way into Hawaii on account of
the deliberate efforts made by Polynesian voyagers. The name 'coconut', it is believed, was
awarded to the palm and fruit by Spanish and Portuguese explorers .The name was derived from
the Iberian 'El Coco', which referred to a mythical hairy monster. The kernel and hair around the
fruit probably generated the connection. The suffix 'nut' was added to refer to the seed-bearing
palm, as most other tree seeds are referred to in the English language. The name stuck, and today
the whole world benefits from the presence of the palm and fruit. The coconut fruit has many food
uses for its water, milk, meat, sugar, and oil. It also functions as its own dish and cup. The husk
was burned for fuel by natives, but today a seed fibre called coir is taken from the husk and used to
make brushes, mats,fish nets, and rope. A very potent fermented toddy or drink is also made from
the coconut. Coconut oil, a saturated fat made from dried coconut meat, is used for commercial
17
frying and in candies and margarines, as well as in non-edible products such as soaps and
cosmetics. Although it takes up to a year for coconuts to mature, the trees bloom up to thirteen
times a year. Fruit is constantly forming, thus yielding a continuous harvest year-round. An average
harvest from one tree runs about 60coconuts, with some trees yielding three times that amount.
The coconut's name is a bit of a misnomer, since it is botanically classified as a drupe and not a
nut. It is the largest seed known.
Ideal Climatic Conditions:
The coconut palm basically thrives in the world's tropical regions. The coconut palm requires warm
climatic conditions for successful growth. The natural conditions that best suit the growth of the
coconut palm are:
• Sandy soil, with a high salinity tolerance
• Abundant sunlight, with a mean annual temperature of 27°C
• Regular rainfall of approximately 150 - 200 cm, annually
• High humidity
• Absence of an overhead 'canopy' growth
18
GROWING
The coconut palm, Cocos nucifera, is considered a "three generation tree," supporting a farmer, his
children, and his grand children. Some trees, which can grow to a height of 60 to 100 feet, even
survive all three generations Cocos nucifera, nucifera meaning nut-bearing, has only one species
that includes both the tall and the dwarf coconut tree, but many varieties exist within the
species.Though the coconut is commonly considered a nut, botanically it is classified as a drupe
and is the largest of all fruit seeds. The coconut consists of the thin, strong outer layer or skin
called the epicarp, the thick fibrous layer called mesocarp, and the dark brown hard shell called the
endocarp that encases the coconut flesh. Just beneath the end of carp is the testa, the thin deep
brown layer that clings to the white coconut meat. The coconut palm is a striking tree with a tall
slender trunk that keeps its same diameter from the base to the top. Beautiful, lacy fronds, about
25 to 35 of them, for man umbrella-like structure at the tree's zenith. The tree grows taller by
forming new fronds that sprout from the top of the tree as the lower fronds die off. Coconuts grow
from the center of the fronds, close to the trunk. Unique to the coconut palm, each tree blooms
thirteen times a year and produces all stages of growth at the same time, from tiny new green nuts
to fully ripened brown nuts that are ready to fall from the tree.
PROCESSING
After harvesting the nuts and removing the coconut water, workers shell the nuts by hand. The
inner skin, a thin brown layer, is cut away leaving pure white balls of coconut meat. The coconut
ball is cut open, then washed and pasteurized. Next it enters a shredding machine that has
adjustments for creating different size shreds for different customer needs. A confectioner may
prefer a finer or shorter shred than a baker. Hot-air ovens or kilns dry the shreddthat is then
19
packaged into large sacks. When the coconut is finally packaged for retail sale, some moisture is
added along with sugar and propylene glycol.
MAIN PRODUCT OF COCONUT IN INDIA
1. Tender coconut water
2. Copra
3.coconut oil
4.Row kernel
5.Coconut cake
6.Coconut toddy
7 .Coconut shell based product
8.Coconut wood based product
9.Coir pitch
20
STERLING COCONUT OILS & CAKES (P) LIMITED
(THANIMA)
21
A PROFILE
Sterling Coconut Oil & Cakes (P) Ltd was established in the year 1953 with an objective to
produce, supply and export of fresh and pure coconut oil. The founder store for the company laid at
Cherpu, a total remote area in Thrissur District, Kerala. Since its inception the company has
marked un paralleled growth that has definitely helped us to emerge as one of the leading and
most reputed companies in the field of extraction and purification of Coconut oil. The company
originally was established in the year 1983 as a partnership firm popularly known as “United Oil
Mills” with an objective to produce supply and export fresh and pure coconut oil in bulk quantities.
Subsequently it was transformed as private Limited Company as is known at present – Sterling
Coconut Oils and Cakes (P) Limited. Sterling coconut oils & Cakes (P) Ltd, is the creation of an
ancestral business family-vallachirakkaran (house) at cherpu. The family business title is “Raphael
and company “,since its inception the company has earned unparalleled growth that has definitely
helped to emerge as one of the leading and most reputed companies in coconut Oil industry under
the Brand name “THANIMA”.
The company strictly follows the quality standards defined by AGMARK and ISO 9001:2000
Certification to take on the challenges of globalization and international quality standards.
By establishing and implementing a high Quality Management System, the company is
striving hard to achieve excellent ceat all levels. Backed by professional management
experts and strong network, the marketing of company's products is channeled through
distributors and retailers appointed in all the key locations of South India. The silver Jubilee
of Sterling was celebrated by spreading the unique fragrance of their prestigious coconut
oil 'THANIMA' to Northern, Eastern, Western and Southern parts of India. The company has
started a new division to take care of exports and begun to accept the export orders from
different parts of world. THANIMA is now available in Europe and Gulf Countries.
22
Presently the management of Sterling is engaged in working out a strategic plan that aims
an ambitious expansion programmes to diversify and enter into the wide market of cosmetic
products like baby oil and soaps.
OBJECTIVES
Thanima’s Quality Policy starts and ends with the customer as a focal point, understanding the
customer's requirements, building systems and processes in place to ensure quality at every stage,
and achieving our commitments on delivering the quality products. It is their endeavor to create a
culture of Total Quality where continuous improvement of people, processes and products become
a way of life. Believe that the foundation of their success is the satisfaction of customers.
Vision
“Our endeavor is to create a culture of Total Quality where continuous improvement of our people,
our processes and our products become a way of life. We believe that the foundation of our
success is the satisfaction of our customers”.
“Our aim is to serve the best quality product (free from all sorts of adulteration) to their
distinguished customers.”
23
MILESTONES & RECOGNITIONS
1. 1953 COMPANY ESTABLISHED.
2. 1994(RENOVATION) INTRODUCTION OF NEW TECHNOLOGY.
3. 1998 ENTERED OUTSIDE THE KERALA MARKET.
4. 2001 BRAND NAME THANIMA GOT REGISTERED.
5. 2002 RECEIVED AGMARK CERTIFICATION FROM GOVT OF INDIA.
6. 2004 FIRST COMPANY IN INDIA TO RECEIVE 9000-2000 CIRTIFICATION FOR
SUPPLY & PRODUCTION OF COCONUT OIL.
FEATURES
Thanima Coconut Oil is extracted and filtered using latest modern techniques, each bottle before
packing is tested by Agmark Authorities Tested in laboratory set up under Agmark standards to
ensure the superior quality of the product and packed in various types of food grade containers and
pouches under highly hygienic conditions. As it give high priority for quality standards. This help to
focus on high quality extraction and ensure the purest form coconut oil. In spite of the success and
growth of this unique product, still continue the same strategy. To avoid any sort of adulteration of
the product, the Company has introduced 'Holograms' on each and every item of THANIMA
COCONUT OIL sold in the market. 'Thanima' the silver jubilant in the edible oil market and coconut
oil exporters, enjoys appreciation from wide range of customers from national and international
level for its purity, smell, taste and freshness. Being the first and best among the edible oil and
coconut oil Thanima complements a real taste to the
24
food. Studies reveal that consumption of Coconut oil is one of the reasons that help Asians and
people from the tropics (whose traditional diet includes coconut oil) maintain their natural health
and body weight. The key to weight loss and vibrant health is in eating the right kind of fats (like
those contained in coconut oil), avoiding refined carbohydrates, and consuming whole foods. The
secret to weight loss is in the chain of molecules that makes up the fat of the coconut oil. Its fatty
acids are known as medium-chain triglycerides (MCTs), which burn up quickly in the body. They're
a lot like adding kindling to a fire, rather than a big, damp log. Coconut oil improves immune system
and energy level, stabilize blood sugar, improve thyroid function and it tastes great, too! Apart from
that, using the oil in its purest form is good for the hair and skin. In the coastal regions most babies
are massaged with the coconut oil in its organic form. This is also being considered as holistic oil.
More and more nations are adopting this oil as part of their lifestyle because of more healthy.
.
PROCESSING OF COCONUT OIL
Coconut palms are grown widely in the coastal tracts of Kerala. Copra, the dried kernel is the chief
commercial product from coconut, which is mainly used for oil extraction. Copra normally has an oil
content varying from 65 to 72 per cent. The quality of an ISO
certified coconut oil is related to the quality of copra for use. Oil can be extracted by: smoke drying,
sun drying, or kiln drying, or derivatives or a combination of these three. Then use most modern
technology and machineries for this purpose. It is well purified, by filtering process and perfectly
refined coconut oils obtained. It is left for natural settling and then filtered in a filter press and then
again subjected to micro filtering and thereafter transferred to storage tanks for packing. It is then
packed in various types of food grade containers and pouches under highly hygienic conditions.
25
To avoid any sort of adulteration of the product, the Company has introduced 'Holograms' on each
and every item of "THANIMA" made available in the market. The oil cake obtained as a by-product
will find a ready market as a cattle feed and in the manufacture of mixed cattle feeds or as a raw
material for the extraction of remaining oil by solvent extraction method. For health reasons
nutritionists and dieticians unanimously promote a best coconut oil diets. They recommend foods
fried in this oil, rather than the usual cooking oil. In fact, in Kerala food is commonly cooked in oil
from the coconuts. Researchers from the medical field are studying the benefits of the organic form
of un refined coconut oil. Initial trials have confirmed that unrefined coconut oil or monolaurin has
an anti-viral effect. A minimum of 50ml of unrefined coconut oil would contain 20 to 25 grams of
lauric acid, which indicates that the oil is metabolized in the body to release monolaurin which is an
antibiotic and an antiviralagent. Among the saturated fatty acids, lauric acid has the maximum
antiviral activity. Thanima coconut oil is a quality product of an ISO certified coconut oil suppliers
with Agmark standards. Each bottle is tested by Agmark Authorities before packing. It is tested in
laboratory set up under Agmark standards to ensure the superior quality of the product and packed
under highly hygienic conditions. As it give high priority for quality standards. This helps Thanima to
focus on high quality extraction and ensure the purest form coconut oil.
Rhythm of Process
The process starts with the selection of copra from vendors from reputed areas best known for the
quality and percentage of yield. The copra from unripe fruits is hand picked before being fed into
the drier to eliminate the moisture content to the maximum extent possible so as to give the product
maximum shelf life.It is then automatically fed into the cutter for breaking into small pieces to be
crushed in the expellers for extracting oil using best modern technology and machineries.
26
The extracted oil then transferred to tanks for filtration process. The oil is then again stored in tanks
for further elimination of unwanted particles if any by natural setting. Then under goes filtering in a
high frequency centrifugal filter and transferred to tanks ready for packing.
The most significant factor in the whole process is that from the point of extraction to packing is
wholly automatic and untouched so as to avoid any sort of contamination of the product.
Production Capacity
The unit is having a production capacity of 60 Mt per day and storage tank scan hold up to about
250Mt of oil. Every care is taken by their lab our force keeping the product, factory and
surroundings neat, clean and hygienic. Thanima play a vital part in our activities of all sorts and
contribute their might for smooth running of all day to day activities. The administrative wing also
deserves special mention for their contribution in all fields of production, packing and distribution of
the product.
Quality Control Lab
Quality control, lab is located inside the Thanima, This Lab is started functioning from 1963. The
Lab function starts with quality assurance of incoming raw materials, assurance finished product
quality considering customers needs. The department lab equipped with latest and most modern
analytical instrument for analyzing the samples of raw material in process product and finished
product.
27
Quality Policy
THANIMA,s quality policy is to produce and distribute good quality coconut oil in fresh from, and
distribute materials through a quality system, which registers continual improvement by setting and
reviewing functional quality objectives aimed to create enhanced customer satisfaction. The quality
policy is communicated to all and is viewed periodically for continual suitably. The management
and staff are determined and committed to achieve this quality policy and try to work for achieve
the goal.
AGMARK Standard
The AGMARK standard was set up by the Directorate of Marketing and Inspection of the
Government of India by introducing an Agricultural produce Act in1937. The word 'AGMARK' seal
ensures quality and purity. Agmark is an a cronym for Agricultural Marketing. This organization
used to certify the food products for their quality. This has been super ceded or dominated by other
quality standards including the non manufacturing standard ISO 9000.The Department of
Agriculture Marketing and Agribusiness has the facilities available at its laboratories for testing food
items mainly for the convenience of food and edible oil manufacturers and exporters. THANIMA
coconut oil is packed in various types of food grade containers and pouches under highly hygienic
conditions. THANIMA the silver jubilant in the edible oil market enjoys appreciation from wide range
of customers from national and international level for purity, smell, taste and freshness.
28
Marketing Mix
Product
Price
Place
Promotion
The company has adopted a planned approach for implementing in product, promotion programs
based on the market department follows a scientific approach and customers are taken into
confidence before implementing any changes in this field.
Product
The company has designed the product is such a variety that it differentiated from its competitors
products. The quality that the company is following is according to the ISI standard i.e.
ISO 90001-2000 standard type 1, Agmark standards. The company maintains the standard from
the raw materials up to the finished products standard.
Product profile
ISO 9001-2000 certified management with Agmark quality products
Product Catalogue
1 ltr pack bottle 1 ltr pouch 1 ltr HDPE bottle 5 ltr can
500 ml Pet bottle 200 ml pouch 500 ml HDPE bottle 2 ltr can
200 ml pet bottle 500 ml pouch 200 ml HDPE bottle 1 ltr can
ISO 9000 – 2001 certified management with Agmak quality products
29
Price
The company has followed a unique pricing policy in the industry. The company is fixing their price
also analyzing the wholesale price of coconut .After fixing the prices the firm compares the price of
medicines to the competitors’ price and then makes necessary modifications.
Place
The company has a unique distribution channels to distribute its products to the customers. In 1953
when it started it has only very few dealers all over Kerala. Now it has became around 500 all over
Kerala. Beyond Kerala it is exporting it products to foreign countries.
Promotion
The company has different varieties of promotional activities as a part of the marketing. They had
enough advertisements through radios and other Medias prevailing in the society. They promote
the product through theatre slides, balloons, scooter stepping covers, and advertising boards etc.
Every dealer will begetting the dealer boards, posters, stickers, banners, brochures etc. from the
company .Some of the most common promotional methods are using inThanima
BOGOF (Buy One Get One Free)
Price discounting
Prize contest
What makes Thanima Different from other oils
• Manufacturing, Filtering 7 packing in own factory.
• Hollow mark on every pack
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• Aluminum cork to prevent adulteration
• Quality control Serial Numbering on every Pack
• Micro filtering Technology to Ensure pure Sedimentation free coconut oil
Markets
Marketing is social and material process by which individuals and groups obtain that they need and
want through creating and exchanging products and value with others. Kerala is the one of the
important area of selling Thanima Coconut Oil major markets are;-
1. Supermarkets.
2. Private Dealers.
3. Retail outlets
4. Direct selling and Other Marketing and Distribution Network
At present “THANIMA COCONUTOIL” is available all throughout Kerala from one end to the other.
The marketing procedure is through distribution spread all over Kerala and other neighboring
states. The product is available also in some parts of UAE, Saudi Arabia, turkey, etc, to name a
few. Apart from packed products, this also sells oil in bulk quantities in tankers and barrels. Within
short span of few years have achieved a remarkable reputation as one of the leading brands.
SCOPE OF THE STUDY
The findings of the study will help Sterling Coconut Oils, Cakes and Mills (P)Ltd. as well as its
dealers to develop and expand their operational problems and to take appropriate steps to improve
their marketing activities by considering customer tastes and preferences. This study will also help
the organization to improve their profit position. It is relevant to examine the consumption pattern of 31
coconut oil in a distinctive market to evaluate the present market activities of Thanima and the
essential measures to be taken to penetrate these markets. Hence the subject of study brings out a
key to forward planning for the next operating period. The marketers can use the result of the study
for improving the brand awareness as well as brand image among customers. Based on that, they
can adopt better marketing strategies for making themselves competitive. The study of customer
preference is important for its marketing developments. The findings of the study can be used to
improve the oil sales of the company by adopting appropriate marketing measures either by
penetrating the existing market of its branded sales or by exploiting new markets. In addition, helps
to identify the market potential of coconut oil over the other brands. The customer preference
towards branded oils, buying motives, their loyalty towards a particular brand and switching from
one brand to another would be taken into account. The analysis based on the needs and wants will
help to add value to existing products and also to measure customer satisfaction. Thus marketers
can utilize the results of the study by positioning the attributes according to the consumers’ as well
as customers’ preference.
OBJECTIVES OF THE STUDY
To study the customer preference towards Thanima
To examine factors influencing customer's preference
To find brand awareness of Thanima coconut oil
To know the customer's preference to advertising media
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LIMITATION OF THE STUDY
The following limitations have happened in the study:
• The time constraint stands as a barrier to cover a much larger sample, hence the result of the
study cannot be generalized.
• Unavailability of accurate information from the customers.
• The study included only major supermarkets in Thrissur city and so customers of minor and
medium supermarkets could not be included in the study.
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CHAPTER.2
FUNCTIONAL AREAS
34
Marketing Functions
The four functions of the marketing department such as product, price, place and promotion are
fulfilled through the activities of various personnel engaged at different levels in the department.
Each of them has different authorities and responsibilities to achieve the over all objective of this
department.
* Marketing of products within and outside Kerala State.
* Building up of brand image and corporate image.
* Maintain both consumer and dealer satisfaction giving adequate importance to improve level of
satisfaction continuously.
* Decision regarding proposals for new product line based on the consumer need.
*The marketing activities of Thanima have helped to record a continuous growth in sales, both
annual and monthly average growth in channels of distribution, dealership as per dealer sales.
Accounting Functions
Accounting functions involves day today accounting of several transactions namely receipts and
disbursement of money, transactions relating to purchases, inventories (both input materials and
finished goods), Production, Sales, other income, fixed assets, salaries, and wages and other
expenses such as manufacturing, administration, selling and distribution.
Finance Functions
Finance functions involve procurement of funds and effective utilization of the same in the
business. Control over expenses is ensured by comparing actual expenses with that of budgeted
figures. By constantly monitoring various operational activities cost control and cost reduction are
facilitated.
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Purchase functions
THANIMA ensures that purchased raw materials meets specified purchase requirements by
implementing proper inspection and the test activities by quality control departments in case of raw
materials. Ensuring mutually beneficial supplier relationship, ensuring the supply of right quality
material at right time, at right place. Fix the material quality and rate to be purchased.
Production functions
The function of production is to convert raw materials in to finished products. It begins from brining
the raw materials in to factory to the packing of waste. The role of production finishes only when
finished goods are properly packed and kept ready dispatch.
Functional Departments
Functioning of Organisation is done by grouping all the work in to major functional Departments. All
related and similar works are done in one Department under one executives. The company is
headed by the Managing Director and supported by Directors. All these Departments work in Co-
ordination for achieving objectives. Out of these Departments first and last is situated at Thrissur
and other three are situated at Cherpu, All these developments are interdependent and
interrelated. They work as a team. Their team spirit co-operation ,integration and group efforts
helps in the efficient and smooth running of the business, optimum utilization of resources, more
economic results and thus provides opportunities for future growth and development.
ORGANIZATION CHART 36
MANAGING DIRECTOR
DIRECTOR
GENERAL MANAGER
PRODUCTION HUMAN RESOUCE FINANCE PURCHASE STORE MARKETING
MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER
SUPERVISOR PERSONAL FINANCE SUPERVISOR SUPERVISOR SALES
OFFICER OFFICER OFFICER
WORKERS EMPLOYEES CLERKS WORKERS WORKERS SALES STAFF
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CHAPTER.6
DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS
The collected data were tabulated and analyzed with the help of statistical tools such as averages,
scores, percentages, etc. To analyse the costumer preference towards Thanima coconut oil and
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the factors influencing customer’s preference, questions were graded on a five point scale.
Response choices were given weightage in the following manner.
RESPONSE CHOICE SCORING WEIGHT
STRONGLY AGREE 5
AGREE 4
NO OPINION 3
DISAGREE 2
STRONGLY DISAGREE 1
THE FORMULA USED FOR CALCULATING THE INDEX(KERLINGER 1970) IS GIVEN BELOW:
INDEX =
TOTAL SCORE OF THE STATEMENT
__________________________ * 100
MAX SCORE OF THE STATEMENT
Each respondent was asked to indicate the description that most suited feeling towards the
statements. The individual’s total attitude score is represented by the algebraic summation of
scores assigned to each statement. The objective was to make a comparative evaluation of
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responses of different statements and to find out for which all attributes the respondents have
favorable opinion and for which all attributes the respondents had unfavorable opinion.
SWOT ANALYSIS
The over all evaluation of the company’s strength, weakness, opportunities, and threats is called
swot analysis.
STRENGTH AND WEAKNESS ANALYSIS
It is one thing to discreen attractive opportunities and another to be able to take advantages of
these opportunities. Each business needs to evaluate its internal strength and weaknesses. The
business does not have to correct all its weaknesses, nor should it gloat about all its strengths.
OPPORTUNITY AND THREAT ANALYSIS
In general, a business unit has to monitor kept macro environmental forces and significant micro
environmental forces. That effects its ability to earn profits . The business unit should set up a
marketing intelligence system to track trends and important development. For each trend,
management needs to identify associated opportunities and threats.
SWOT ANALYSIS OF THANIMA COCONUT OIL SEGMENT
STRENGTH
40
BRAND NAME
EXPERIENCE
GOOD WILL IN KERALA MARKET
SUPPORT OF CUSTOMERS
EFFICIENT MNAGEMENT TEAM
ATTRACTIVE PACKING
GOOD PRICING STRATEGIES
WEAKNESS
LACK OF ADVERTISEMENT
SMELL OF COCONUT OIL
OPPORTUNITY
Total Kerala market, there in opportunity of 30% of market share in recognized segment.
THREAT
Ordinary coconut oil and Kera are having strong market presence.
TABLE 1
FAMILIARITY ABOUT THE BRAND NAME “THANIMA”
41
PARTICULARS NO.RESPONDENTS PERCENTAGE
YES 57 57
NO 43 43
INFERENCE
The study shows that 57% of the respondents are aware of thanima brand and 43% of
respondents are not aware about the brand.
FIGURE 1
FAMILIARITY ABOUT THE BRAND NAME THANIMA
42
YES NO0
10
20
30
40
50
60
NO OF RESPONDENTS
TABLE 2
BRAND PREFERENCE
43
PARTICULARS NO OF RESPONDENTS PERCENTAGE
ORDINARY COCONUT OIL 56 56
KPL 21 21
THANIMA 14 14
KERA 7 7
OTHERS 2 2
TOTAL 100 100
INFERENCE
The study shows that 56% of respondents are regular users of ordinary coconut oil and 21% of
respondents are users of KPL and 14% of the respondents are users of thanima. 7% of
respondents say that they are using Kera and 2% respondents are using other oils.
FIGURE 2
BRAND PREFERENCE
44
ORDINARY OIL KPL THANIMA KERA OTHERS0
10
20
30
40
50
60
PARTICULARS
NO OF RESPONDENTS
TABLE 3
THE QUALITY NORMS OF THE CUSTOMERS
45
PARTICULARS NO OF RESPONDENTS PERCENTAGE
BRAND NAME
13 13
PRICE
23 23
ADVERTISEMENT
5 5
PACKING
2 2
NO COMPLAINT
57 57
TOTAL
100 100
INFERENCE
The study shows that 57% of respondents mean by quality as no complaint, 23% considers price,
13% of respondents considers quality as brnd name, 5% of the respondents considers quality as
advertisement, & 2% of the respondents considers packing of the product.
FIGURE 3
THE QUALITY NORMS OF THE CONSUMERS
46
BRAND NAME
PRICE
ADVERTISEMENT
PACKING
NO COMPLAINT
0 10 20 30 40 50 60
NO OF REPONDENTS
TABLE 4
INTRODUCTORY OFFER SCHEMES
47
PARTICULARS NO OF RESPONDENT PERCENTAGE
PRICE REDUCTION 54 54
MONEY SAVER PACK 34 34
SOME QUANTITY FREE 10 10
OTHER OFFERS 2 2
INFERENCE
The study shows that 54% of respondents are preffering price reduction as the introductory offer,
34% prefer money saver pack. 10% of respondents prefer quantity free, and 2% prefer other offers.
FIGURE 4
INTRODUCTARY OFFER SCHEMES
48
PRICE REDUCTION MONEY SAVER PACK SOME QUALITY FREE OTHER OFFERS0
10
20
30
40
50
60
TABLE 5
THE PLACE OF PURCHASE
49
PARTICULARS NO OF RESPONDENTS PERCENTAGE
SUPER MARKET 64 64
STATIONARY SHOP 16 16
GROCERY SHOP 10 10
INFERENCE
The study shows that 64% of the respondents will go supermarket,16% approaches stationary
shop, and 10 % are going to grocery shop.
FIGURE 5
THE PLACE OF PURCHASE
50
SUPER MARKET STATIONARY SHOP GROCERY SHOP0
10
20
30
40
50
60
70
NO OF RESPONDENTS
TABLE 6
THE EFFECTIVE TOOL OF ADVERTISEMENT
51
PARTICULARS NO OF RESPONDENTS PERCENTAGE
TELEVISION 41 41
RADIO 19 19
NEWSPAPER 25 25
MAGAZINES 5 5
WEEKLY 10 10
INFERENCE
The study shows that 41% of respondents says that most effectieve medium is telivision, 25% of
them says newspaper, 19 % of them says radio, 10% of them says weekly & 5% of them says
magazines.
FIGURE 6
THE EFFECTIVE TOOL OF ADVERTISEMENT
52
TELEVISION
RADIO
NEWSPAPER
MAGAZINES
WEEKLY
FINDINGS
Majority of the respondents are familiar with the brand name “thanima”
More of the respondents prefer pure colour for coconut oil.
Majority of the respondents are regular users of ordinary coconut oil.
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Respondents are more prefering the availability of the product.
Majority of the Respondents prefers coconut oil by which there is no complaint to
oil.
All respondents wants introductory offers.
Most of the respondents go supper market for their purchase.
It is found that television is the important & effective tool of advertisement.
Competitors of the thanima coconut oil where
1. NIRMAL COCONUT OIL
2. KPL SHUDHI
3. KERA
4. LAKSHMI
5. PARACHUTE
6. GREEN VALLEY
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SUGGESTIONS AND RECOMMENDATIONS
SUGGESTIONS
> SAMPLE BOTTLES.
> THE PRODUCT SHOULD BE MOSTLY AVAILABLE MOSTLY IN SUPPER MARKETS
AND ORDINARY.
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> ENSURE A STEADY DISTRIBUTION SYSTEM.
> COMPETITIVE COUPON SHOULD BE PROVIDED TO THE CUSTOMERS.
> STEP SHOULD BE TAKEN TO PROVIDE PRODUCT AVAILABLE TO MORE PLACES.
RECOMMENDATIONS
PACKING & LABELLING
To influence the customers while shopping they should get attracted more. In order to catch up
their minds. In first sight packing and labelling should be more attractive and effective.
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While labelling a tag should attached on the bottle neck this should indicate the company's motto.
Specially of the product like 100% natural etc> The tags are quite good idea to give information
about the product. As well as it helps the morale of the customers to make a purchase of the
product.
The shape of the coconut oil bottle should be different from other which attract the customers
more.
PROMOTIONAL ACTIVITIES
Promotional activities may include issuing competitive coupons along with the oil may about the
suggestions of the customers or about the opinion of the product. Another method of promoting
sales is issuing cards or labels to collect by the customers. The person who returns the labels or
cards will be surely priced.
OR
Feedback questions can be issued through the above method the questions may of different types,
“your kind opinion about the brand”? Or “your valuable suggestions please”. Customer who
respond should be appreciated with a reward which gives a flavour to the customers about the care
given to them. So in customers mind the probability of winning chances increases this promote
them to buy the product regularly.
ADVERTISEMENTS
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Advertisements by giving sachet packs along with the leading women oriented magazines, which
leads to influence potential customers. Womens are the decision maker in a family. If women gets
influenced through the advertisement they will definitely note the product to purchase it in next
time. For eg , vanitha, grihalakshmi, mahilarathnam etc.
CONCLUSION
This survey was conducted to find out the “ competitive study of coconut oil based on sterling
coconut oil & cakes pvt.ltd . (Thanima, agmark), cherpu.” for the study 100 samples was
taken from Thrissur district. From this study it was found that ordinary coconut oil, KERA, KPL, are
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the major competitors of thanima coconut oil market. The ordinary oil performs as a role of market
leader so as to make more sale advertisement is the major factor which influence the customers.
The other findings and suggestions are listed in the project.
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