10/04/2023

Marketing Management -IProject Report

Branded Cooking Oils

Section C Group-IIIGanesa Kumar K V 0128/48Happy Saini 0137/48Harshit Krishna 0143/48Himanshu Kumar 0147/48Rohan Gala 0127/48Uday Mehta 4035/18Vinay Kumar Juluri 4040/18

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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%

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Marketing Survey

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Objectives• Key factors affecting consumer buying behavior • Analyze the interaction between these factors• Derive conclusions that a marketer can use

MethodologySurvey conducted under two broad categories:• Customers (income based segmentation)

Lower middle class (LMC) Upper middle class (UMC)

• Shopkeepers

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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

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Customer Analysis

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Customer Perceived Value

Determination

Analysis

Customer Satisfaction

Determination

Enhancement

Decision Makers

Buyers and Users

Influencers

Factors influencing Consumer Behavior

Personal

Social and Cultural

We shall cover

-> Observations and Explanations approach

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1. Customer Perceived Value1.1 Customer Benefits

High Income

Low Income

1.Psychological(Health Benefits)

Increasing Importance

2.Functional(Taste, Purity, Quality)

3.Economic(Prices)

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7%

31%

20%

42%

Lower Middle Income

31%

47%

5%

17%

Upper Middle Income

Traditionally UsedHealth BenefitsTaste & QualityPrice

1.2 Most Valued Attributes

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• 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

1.3 Value Analysis

Must be constantly monitored

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2.1 Total Customer Satisfaction

Expectations Performance

• 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

?

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• Very competitive market

• High Customer Retention indicates Satisfaction and hence, loyalty

• Most consumers long term users of particular brands, but many also willing to shift to a better value offering

Constantly Improve Value Proposition

2.2 Customer Loyalty and Retention

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25%

46%

29%

Would switch to better Value Offering

Yes

Maybe / Will test once

No

8%6%

47%

39%

Years since change of Brand

< 11 to 22 to 5> 5

2.3 Customer Loyalty and Retention

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• Buyers and Users

Users of Cooking Oil (usually homemakers) principally decide type, 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, senior citizens)

influence which product attribute gets priority in buying

Older members: Health Benefits more important, Children: Taste more important

3. Decision Makers

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4. Other Factors Influencing Consumer Behavior• Personal Factors

Economic Circumstances Age and Stage in Life

• Social and Cultural Factors

• Sources of Information

64%7%

22%

7%

Sources of Information

TVMagazineWord of MouthPoint of Sale

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Saffola35%

Nature Fresh13%

Sundrop23%

Emami6%

Fortune13%

Engine6%

Others3%

Upper Middle Income

Preferred Cooking Oil Brands

Refer to Exhibit 6

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Saffola14% Nature Fresh

9%

Sundrop34%

Emami3%

Fortune17%

Engine20%

Others3%

Lower Middle Income

Preferred Cooking Oil Brands

Refer to Exhibit 6

Marketing Mix

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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

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Marketing Mix Variables - 2

• Place Kirana stores, retail shops & wholesalers. Modern retail stores

Every SKU & variant of oil is present

• Promotion Special offers Advertising

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Thank You

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Questions