Download doc - Adani Wilmar Ltd

Introduction:Adani Wilmar Ltd. A joint venture between two global

giants. The Rs. 3500 crore Adani Group of India – the leaders

in International Trading and private Infrastructure. And the

US $ 2.1 billion Wilmar Holdings Pte of Singapore- one of the

world’s lar111t players in trading and edible oils. Together

they have joined hands to build India’s largest and most

sophisticated refinery with 600 TDP capacity. The state-of-

the-art technology is from Desmet of Belgium.

Adani Wilmar Ltd introduces a world class range of

edible oils. Fortune refined Sunflower, Soyabean, Cottonseed

and Groundnut oils. A world-class range created by strictest

quality controlled computerized manufacturing processes.

The oils are passed through a Twin Tempreture De-

Odouriser, a patented technology from Belgium, to remove

undesirable odour causing substances. They are further

double de-waxed and winterized, to completely eliminate

undesirable fats and waxes. In a vacuum sealed, computer

controlled environment, Fortune is totally untouched by

human hands, right from the time the raw edible oil is

offloaded at the port till it is refined and oacked. Giving you

a product that is superior in hygine. In tamper proof packs

that guarantee 100% healthy and 100% purity. With the

international seal of purity.

Available in :

Pouches : 500ml / 1 Litre

PET Bottles : 500ml / 1 Litre

Jerry Cans : 5 Litre / 15 Litre

Tins : 15Kg./15 Litre

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Product Portfolio:

Fortune Refined Sunflower Oil

Light, Nutritious, Healthy, Rich in polyunsaturated fatty

acids and low in saturates. Easy to digest. Refined through

double dewaxing and winterization process, ensuring the

lowest percentage of wax amongst all brands available in

the country.

Nutrition Facts(Approx. composition per 10 g.)

Calories 90

Cholesterol 0

Saturates % 12

Mono/Poly Unsaturates 88

Contains permitted Antioxidants

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Available in :




Tins : 15 Kg. / 15 Litre

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Fortune Refined Cottonseed Oil

Pure, Light, High in polyunsaturated fatty acids,

Economical to use, Maintains the flavour of food, Ide555for

deep frying.


Calories 90

Cholesterol 0

Saturates % 24



Available in :





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Fortune Refined Soyabean Oil

Pure, Transperent, Odourless, Healthy, With a low

content of polyunsaturated fatty acids, Giving you an

economical cooking medium.


Calories 90

Cholesterol 0

Saturates % 14


Phosphorous < 5 PPM

Natural Vitamin ‘E’ 0.5 MG


Available in :





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RESEARCH OBJECTIVES

RESEARCH OBJECTIVE

It has been divided into two parts:

Retailers survey Objective

Distributors/Dealers survey objective

Retailers Survey Objective

To know the actual penetration of Fortune edible oil in

rural markets of North Gujarat.

To know the market share of edible oil of different

companies for competitive analysis.

To know the availability and visibility of Fortune brand

Distributors / Dealers Survey Objective

To know the Brand awareness and Brand Preference of

Fortune edible oil in Rural markets of North Gujarat.

To know the opinion of the dealers regarding Brand

promotion of Fortune.

To know the problems faced by Fortune brand in rural

market.

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RESEARCH DESIGN:

DATA SOURCE:

Primary source: - Retailers and Dealers.

Secondary source: - Catalogues, Customer price list, Web-sites, Company

brochures.

Type of survey:

It is a Population survey, as the entire population of retailers

and dealers has to be covered.

Population AREA:

The research objective is to develop the Fortune brand in rural markets of

North Gujarat, so I have selected seven major places of north Gujarat.

KADI, MEHSANA, KALOL, SIDDHPUR, PRANTIJ, HIMMATNAGER,

IDAR.

RESEARCH INSTRUMENT:

My research Instrument is “Questionnaire” because other research instruments are costlier.

METHOD OF CONTACT:Personal

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FINDINGS & INTERPRETATION

IDAR

18 45.0 45.0 45.0

1 2.5 2.5 47.5

1 2.5 2.5 50.0

11 27.5 27.5 77.5

3 7.5 7.5 85.0

6 15.0 15.0 100.0

40 100.0 100.0

40 100.0

Rso

Rc & Rso

Rc &Raag

Rso&Raag

Rc,Rso&Raag

N.A.

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

Fortune

Idar

Fortune

N.A.

Rc,Rso& Raag

Rso &Raag

Rc &Raag

Rc & Rso

Rso

Pe

rce

nt

50

40

30

20

10

0

15

8

28

45

40

µ §µ §

µ §µ §

Interpretation: -

It can be said that Soyaben is available in most of the stores, but availability of cottonseed and sunflower is very less. Raag is penetrated averagely. This situation has risen due to the competition level of the market leaders like Tirupati & Maruti and the local players interested in selling the same product in loose. (According to dealer’s opinion)PRANTIJ

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µ §µ §

µ §

Interpretation: -

In Prantij the entire market is penetrated by Tirupati & Maruti but Soyaben and Cottonseed has given a tough results as compared to other brands in the market. In vanaspati company’s Raag is almost available in all the stores, but there also brands like Rasda and Shakti are given similar competition.

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MEHSANA

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µ §µ §

µ §µ §

Interpretation: - It is seen that in Soyaben is available in almost all the stores of Mehsana, and

even cottonseed is penetrated above average. But Sunflower and vanaspati Raag are not available in sufficient amount. Here the major competition is with brands like Tirupati, maruti, & Vimal.

HIMMATNAGAR

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µ §µ §

µ §µ §

Interpretation: -In Himmatnagar again Soyaben and Cottonseed oils are only working good but

Sunflower and Raag are something below average. Here major competitors are Tirupati, Maruti, and Rasada in Vanaspati.

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KADI

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µ §µ §

µ §µ §

Interpretation: -In Kadi it is observed that only Soyaben is properly penetrated and other like

Cottonseed, Sunflower and Raag is still below average, which is due to the strong competition of brands like Tirupati, and Meghdhara (Local brand). Even in Vanaspati market there is a place of a local brand Tandurast that affects the Raag Market very much.

KALOL

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µ §µ §

µ §µ §

Interpretation: - There is a very clear picture in Kalol which shows that the availability of Fortune

brand is only for Sayaben and Raag Ghee, but no stock of Cottonseed oil is available and Sunflower is seen somewhere. The tough competition is only with Tirupati & Maruti, And Rasada in Vanaspati.

SIDDHPUR

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µ §µ §

µ §µ §

Interpretation: -In Siddhpur only Soyaben oil is available and fully penetrated in retail market as

Fortune brand. But again in cottonseed, market leaders are Tirupati and Maruti. As far as Sunflower oil is concerned it is not available in any stores, as it is hardly consumed by peoples there. In Vanaspati Madhuram is the leader and Raag is penetrated below average.

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Dealership Study

Siddhpur

Prakashbhai -Dealing in Fortune brands as well as Maruti and Amrut brands of edible oils, and Rasada in Vanaspati.

Problems: -

1 year open market constraints for RAAG vanaspati brand.Price is the most hindering factor they are facing.Proper visibility of the product is not there, as it should be.Proper advertisements are not done by the company.Instability of price, as it differs frequently.

Suggestions: -

The company should lower its current price to the least possible extent as compared to its competitors.The company should pay for the visibility of the products.Media improvements should be done for effectiveness.Company should allow to show ads in local vigyapans and local ads.The sales representative should have a regular visit.Proper discounts should be given as compared to other competitor’s brands.

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Mehsana

Brijeshbhai - (Proper FMCG dealers)

Problems: -

Instability of price.Quality is something more than required.Demand of lesser price product is increasing daily.Regular users are shifting on competitor’s brands.There is lack of visibility of product in most of the retail stores.The malpractices done by retailers is disturbing their business. They feel injustice in discount policy of the company.Very poor acceptability of the product.

Suggestions: -

There should be different range of products for different types of people.There should be stability of price of the product.Efforts should to convert non-users into users.Scrolling ads should be given in local cables before films.More paintings should be made.Better visibility of the products should be made possible.There should be a meeting held for Doctor’s association for quality of the products.More C.D should be given on RAAG as compared to competitors.

Suggested Schemes: -

Distributors oriented schemes should the company come out with.10 % extra on pouches of 1 litre oil of Fortune.

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Himmatnagar

DilawarKhan (D.K.Agency)

Dealing in Fortune brands as well as dealing in overall range of P&G brands of the product and also distributor of Nirma.

Problems: -

Higher price as compared to competitors price.Color problems are very frequent among the users.Irrelevant advertisements are done.Local company’s brands for loose packaging.Poor visibility of the product.Schemes are not at all working if they are consumer oriented.

Suggestions: -

Quality doesn’t matters but price of the product must be less.Company should make out solution for better visibility of the product. Ads should be given in Proper media like local vigyapans, cables, etc.Open market should be closed in RAAG.There should be stability of price in Fortune brands.Proper discounts should be given on mass purchasing of the product.Retailer oriented schemes should be brought by the company.

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Kadi

Nayak Hashmukhlal Chanalal –

Dealing in many FMCG products of brands likeFortune, Nescafe, PanteneÿÿAriel, Vicks, etcAlso having a provision store.

Problems: -

In Vanaspati problem is of color, as compared to Tandurast, which is accepted m2222t and even RASADA.Schemes are working in some specific periods or seasons.Sunflower and Groundnut are not at all preferred.Ads media are very poorly done, and company never takes care about this points.People do not prefer quality products but less price is there need.Some customers are having problems with color with RAAG ghee.Local refineries are the one creating problems for them.

Suggestion: -

RAAG open market should not there.Proper and relevant advertisements should be done through proper media.There should be stability of price in the products of Fortune brands.

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Kalol

Memon Vallibhai Abdul Latif –Dealing in Tirupati, and Fortune edible oils and also dealing in wholesale for Basmati Rice and Wheat.

Problems: -

People prefer competitor’s brands because of price constraints.Schemes never worked if they are consumer oriented.Pricing is instable which is the biggest constraint for them.Ads are ok but needs improvement in use of proper media.

Suggestions: -

If product is less costly than no one bothers to see the quality of the brand because they cannot afford except a few.Pricing should be stable.Most probably display like paintings and P.O.P works.Visibility of the products should be improved a lot.Retailer oriented schemes should be offered by the company.Color of vanaspati RAAG should be done yellow from white.

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Prantij

Brijeshbhai –Dealing in Fortune, Maruti edible oils, and also dealing in entire range of P&G Brands.

Problems: -

Almost the market is captured by Tirupati and Maruti in cottonseed oil.Co-ordination from the company is not satisfactory.People prefer competitor’s brands because of price constraints.No one bothers about the quality of the product.Chances of malpractices from the retailers.Most of the goods are sold only because of there relations with retailers.

Suggestions: -

Advertisements are good but still c2424 should take some effort to increase it via local cable nets and paintings.Company should give money for better visibility of the products in stores.Proper S.R visits should be done.Better supply for cottonseed oil should be there.Retailer oriented schemes should be there.

Schemes suggested as promotional tools: -

20% extra on pouches of 1 litre.T-shirts & Caps for retailers.Buckets or vessels free on product.

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Idar.

Jigarbhai –Dealing in entire range of Fortune as well as having agency of Parle products.

Problems: -

Except Soyaben in other products only competitor’s brands are preferred.Prices of Fortune brands are very high and due to that people do not prefer to buy.Schemas have a bad impact on customers.Retailers are forced to do the malpractices.Open market for RAAG is the biggest constraint in Vanaspati.Proper supply from the company is not done in cottonseed oil.Discounts given by the company is not sufficient.

Suggestions: -

There should be price stability in Fortune brands.Manager’s team in such rural areas should conduct a doctors meeting so that they can recommend it to peoples.If possible the S.R should have a regular visit at least once in a week.Media like local channels, paintings etc should be used by the company.Other things like P.O.P, should be provided free & Frequently to dealers and retailers.Proper discounts should be given.

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Findings:

One thing is very clear that there is a different segment of people who are least concerned about the quality and they are very much attracted towards the less costly product.As far as Soyaben oil is concerned, it is the only product of Fortune brand that is perfectly penetrated in the rural markets.Sunflower oil is a product, which is only accepted by a particular class of people, that also we can say that by higher-class people.The overall strength of this type of peoples is most pro2626bly very less. Hence there is no meaning for the distributors to run the sunflower brand in rural areas. It is also believed that upper-class people only use such kind of cooking oil, so this doesn’t work there.Cottonseed oil is also one of the Fortune brand that has been successfully captured the rural market but due to the unavailability of proper amount of stock supply, it is again failing. Because of this, a psychology has developed in the mind of retailers and consumers, that something must be wrong with the brand whether it can be quality, quantity or anything else. Again there are many constraints related to pricing of the product and its brand. As far as pricing is concerned it can be said that, the company should try to understand the latent demand being created in those rural areas.Here it was observed that, the major segment of the people is price conscious and not quality conscious. In-fact there is a particular class who is somewhat serious about quality of the product but they are difficult to recognize and handle.One more thing is very frequently seen in behavioral pattern of consumers as well as retailers that they all are aware about the measurement of quantity of the product. All other product brands are available in Kilogram measurement and Fortune oil is available in Litres packing, this thing works a lot in consumers mind, that if they purchase a 15 Litre soyaben jar, then they will get 1.5 Kg less as compared to other company’s brand.

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Vanaspati:

In Vanaspati the brand of the company is “RAAG”. In context with other vanaspati brands like RASDA, RANJIT, SHAKTI, MADHURAM, TANDURAST, etc. These are the competitor’s brand. Among these we can say that RASDA is the market leader as far as rural market is concerned. Besides rural markets it has also a good potential in other non-rural markets. Now as far as RAAG vanaspati is concerned, it has also covered a good positional area in the mind of consumers and retailers, but always strikes after RASDA. In the field of Vanaspati the distributors feel some constraints while dealing in RAAG. They are as follows:The very first constraint that the distributors complaint about is about the open market of RAAG that the company has made out in the entire market. According to them, this open market strategy has really left no options for them. Hence most of them are lessening their interest in Vanaspati.Another issue is about the cash discount on RAAG. One of the distributors has a complaint about the cash discount the company is giving on Vanaspati products. As they compare RAAG with other brands like SHAKTI, which is of Ankur, it gives Rs 5/- as cash discount and they are getting Rs 3/- on RAAG as cash discount. So this was one of the major issues, which again lessened their interest for trading in RAAG.There is on more point related with the color of the product. Some of them came to know that there is a common psychology in people of rural regions that vasaspati ghee should be of yellowish color, which is again choice of the target market, but RAAG is totally of white color, which makes the consumer to think twice, or thrice before purchasing the product.As far as packaging of the product is concerned there is no complaints regarding it.

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Effects Of Various Schemes :

According to distributors survey, it was known that there were many schemes that the company had launched till now. Among that some of them were consumer-oriented schemes, while some of them were retailer-oriented schemes.Now the most important point to be noted was that due to the rural psychology of those people, these schemes resulted a good amount of business and even the company made profits but, again it was observed that this schemes are always for a particular span of time, so till that period the product and the brand of the company will work and when the scheme will get over again the public will leave to use the brand and switch over to other company’s brand.One more thing was seen and observed by the distributors of some local places like Kalol, Prantij etc. it was something like this:(1)Example: The Company had come out with a scheme last year that with each and every pouch of 1 ltr there will be a bathing sope free. Now what happened that the retailers saw that there is a scheme and they are not getting any kind of benefit, hence what this people did that ÿÿÿy purchased 100 1 ltr pouch at a wholesale rate, made them loose and then sold it on a retail loose pricing, Again on the other side the bathing sopes that they got for the scheme were being sold out as extra retailing, so they got profit on both the side.

Hence this is an example which shows that the main purpose of the company coming out with such schemes were that the consumers get aware of the product as well as the brand in such a manner that positioning to the target market can be done successfully.But if such is the scenario it is hardly possible for the company to do so.(2)Example: There was another case when the company had launched a scheme of 1 ltr Coca-Cola bottle free with a 5-ltr Fortune jar. Even at that time the company get through a great sum of business with proper gains. At that time it created a boom but again was the same case with those retailers and distributors that they had a complaint with the company about the un-structured psychology of rural people who accepted the brand until the scheme was available, that is because they were getting Coke free with the brand. And as soon as the span of that scheme was over then they again switch over to another brand.

Now as a result of all this problems and serious constraints there is a general tendency developed in consumers and retailers of rural areas, that the brand will only work if the company is coming out with some special schemes as mentioned above.

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Strategy : Give Them What They Want !

Brand Development

Brands vary in the amount of power and value they have in market place. At one extreme are brands that are not known by most buyers. Then there are brands for which buyers have a fairly high degree of brand awareness. Beyond this there are brands with a high degree of brand acceptability. Then there are brands that enjoy a high degree of brand preference . Finally there are brands that command a high degree of brand loyalty.

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Recommendations And Suggestions

(1) Customer point of view :

Customer will change brands, 303030ecially for the price reasons. No brand loyalty.Customer is satisfied. No reason to change the brand.Customer is satisfied and would incur cost by changing brand.Customer values the brand and sees it as a friend.Customer is devoted to the brand.

Now development is highly related to how many customers are in class 3, 4 & 5. But the very first point of view is perfectly matching with the behavior of consumers in rural markets. So this shows that there is a very keen need for developing the Fortune Brand. Again for the development it is also related, according to design, to the degree of brand-name recognition, perceived brand quality, strong mental and emotional associations, and other aspects such as channel relationships.

There is one way that the company can enjoy reduced marketing costs because of consumer awareness and loyalty, but this not the situation so far. Hence the very first step is that the company should come out with some effective brand promotion tools.

Here are some brand promotion tools that the company can go with.

10% extra on 1 ltr pouch :- By having such scheme there is a great benefit to the company that even the retailer could not loose it and sell the product and even the consumer is attracted by getting the advantage of something extra.

More or less it is observed that the distributors and retailers are the one who can sell the product as much as they want, hence there should be such offers given to them by the company that they get some benefits and only then they will run the brand in the market.

Again there can be promotional tool like cash discount, which again if possible for the company, should give to the distributors, especially on Vanaspati ‘RAAG’. Because they just do nothing exceÿÿÿcomparing this attribute with the competitors brand, as in the case of Vimal.

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(2) Ghost Shopping

As a company’s person to pose as potent313131 buyers to report on strong and weak points experienced in buying the company’s and competitor’s products. It was observed that most of the consumers were not even aware with whÿÿÿthey are buying, what are its qualities, why it is costly as compared to other brands, etc.

Hence one thing is clear that there is a need to position the Fortune brand in the minds of the potential customers. For that there are few solutions to do so.

(3) Range of products

This is one of the best solutions that the company can undergo with. Here by analyzing the market potential it can be said that as far as rural market is concerned, there are consumers that want quality and are ready to pay price for that, there are consumers that are least concerned about the quality and can’t pay the price we want. So the company should come out with such a range of product, which include both quality products for the ones who can afford to pay for it, and quantity product for the ones who are not ready to do so. By doing so there is one more benefit to the company that it will extend the line and length of the product.

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(4) Brand positioning-Lesser price.

Another thing is that the only demand in the rural market is to get the product with lesser price as compared to other brands. So the company can go with the alternative of decreasing the price of all those brands that are having a good potential in rural market. By doing so the product will achieve a good brand positioning in those areas that it will be very easy to run Fortune brand in those areas afterwards.

There is one way of doing so by decreasing the quality of the product, because the rural psychology is something that they wants cheaper products and not the costly ones. Another thing is that they are least concerned with the quality, as they are not at all aware about the original quality of the product. The only thing they are aware 323232the loose packed oil, which is easily available at the bottom-level price in such rural areas.

So the company has an alternative of doing so by decreasing the quality as well as the price up to a certain extent. By doing this experiment it may happen that the consumers prefer to purchase more of Fortune brand and star323232ignoring other company’s brands like Tirupati, Maruti, Vimal, etc. And after a particular span of time if the company increases the price of the brand, even then the product will run successfully run in the market, because till then the target market will be well aware with the product and its qualities and hence they will pay for it.

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(5) Price Stability

Oil business is very fluctuated so due to the fluctuation in price most of the distributors are not satisfied. The main reason is that they take a price and give it to the retailers at an increasing rate, so if there comes a fluctuation in price between this procedures then there will be price discrimination to the distributors as well as to the retailers.

So for that the company should come with a stable price as the other companies are doing. According to the observation it was seen that the prices of brands like Tirupati and Maruti are stable since many a time, so that is the same thing happen with Fortune.

Now there is a way that the company can have a stability in the price of Fortune brand for at least 15 days.

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Advertisements:

Media Strategy :

Mission: Create awareness, build a unique Brand Image and ensure top of the mind recall of Fortune- our core brand.Message: Eat & Enjoy Food without guilt, when the food is cooked in FortuneMedia: Television / Print / Radio / Hoardings / Glow signs / Wall paintings / Promotional articles.Money: There is a fixed amount allotted by the company for the Advertisement of its brandCampaign Theme: “Thoda Aur Chalega” (translated, it means: ‘ A little more will do’, helping yourself to a little more that delicious food, cooked in Fortune, is just fine and you needn’t feel guilty about it)

Advertisements are nothing butÿÿÿsimple flow of information about the company’s products and brands.Now in the rural areas like North Gujarat region, the literacy rate is sl343434tly low as compared to other places. So people living there must be informed about the product by other means and simple media like print media, cable ads, etc.There are also places where there is no use of showing ads on Television, as they hardly try to observe it.Hence media like print media, cable ads on local channels, Hoardings, Paintings of the brand, P.O.P, Local vigyapan ads, Scrolling ads on local channels, etcAnother thing which is most important is that any of this media the company uses but it should be proper visible to the targeted consumers.It was observed that other company’s advertisements are different than us, as they show their ads by highlighting the qualities and its advantages to the one who consumes.Example: Akshar shows a scrolling marquee on local channel and along with the information of the product it also states that, it is also beneficial for patients of Diabetes, Heart, Blood Pressure, Eyes, etc by showing qualitative advantages.Hence AWL should also think to come out with such kinds of advertisements, at least to keep in touch with the target market in rural areas. This is necessary to do because this people believe only what they see and watch and observe.

“Fortune” Favors The Brave

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Names Of Dealers: -

KADI- Nayak Hasmukhlal ChanalalRohitbhai & Kaushikbhai. Tower Darwaja,Near S.T. Busstand.Phone : - O-242171

MEHSANA-Shilpa Agency/Mona AgencyBirjeshbhai & PatelMall godown,Phone: - O-952762-254121

M-98253-54122

KALOL-Memon Vallibhai Abdul LatifVahidbhai Market,Phone: - O-02764-223168

SIDDHPUR-Rajshree TradingPrakashbhaiMarket yard/GanjbazarPhone: - O-02767-220982

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HIMMATNAGAR-D.K.Agency / Memon Trading,Jeevan Dhara Complex,B/H Mahrastra bank,Hajipura,JunabazarPhone: - O-02772-240524/243938

PRANTIJ-Shrinathji AgencyBrijeshbhai,Opp Seth P&R High School,St Road,Beside bus stand.Phone:363636O-95277-0231248

IDAR-Darpan Agency/ Meghdoot AgencyJigarbhaiPhone: - O-952778-250218

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APPENDIX

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BIBLIOGRAPHY

Books & Magazines:Marketing Management – Phillip Kotler (10th Edition)

Software used:SPSS Software

Websites visited:µwww.adanigroup.com§µwww.adaniwilmar.com§µwww.indiainfoline.com§

Company’s literature for product profileCompany’s Brochure

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http://www.adanigroup.com/

http://www.indiainfoline.com/

http://www.adaniwilmar.com/