Marketing Management -I Project Report

Branded Cooking Oils

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

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

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

Marketing Survey

19-04-2012

Marketing Management Project Report

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

Methodology
Survey conducted under two broad categories: Customers (income based segmentation) Lower middle class (LMC) Upper middle class (UMC) Shopkeepers
19-04-2012 Marketing Management Project Report 4

Questions for consumers

Specific brand preferences Reasons for choice of brands Brand Loyalty

Questions for shopkeepers

Influence on consumer buying behavior Buying pattern and SKU preferences

19-04-2012

Marketing Management Project Report

Customer Analysis

19-04-2012

Marketing Management Project Report

We shall cover
Customer Perceived Value Customer Satisfaction
Factors influencing Consumer Behavior

Decision Makers

Determination

Determination

Buyers and Users

Personal

Analysis

Enhancement

Influencers

Social and Cultural

-> Observations and Explanations approach

19-04-2012 Marketing Management Project Report 7

1. Customer Perceived Value

1.1 Customer Benefits
1.Psychological
(Health Benefits)
High Income

2.Functional
(Taste, Purity, Quality)

Increasing Importance

3.Economic
(Prices)
19-04-2012

Low Income
Marketing Management Project Report 8

1.2 Most Valued Attributes

Upper Middle Income Lower Middle Income
7%
31% 5% Traditionally Used Health Benefits 42%

17%

Taste & Quality Price

47%

31%

20%

19-04-2012

Marketing Management Project Report

1.3 Value Analysis

UMCs placed constant importance on particular attributes over time, but changed brands to fit their criteria the best as per their lifestyle LMCs as they grew in income shifted the amount of importance they laid on individual product attributes

Must be constantly monitored

19-04-2012

Marketing Management Project Report

10

2.1 Total Customer Satisfaction

High rate of repeat purchase: Retention difficult without constantly meeting expectations Attributes observed in decision making: Tangible and Intangible Difficult to portray superiority in terms of Intangible benefits

Focus on Marketing

Expectations

Performance

?
11

19-04-2012

Marketing Management Project Report

2.2 Customer Loyalty and Retention

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
19-04-2012 Marketing Management Project Report 12

Constantly Improve Value Proposition

2.3 Customer Loyalty and Retention

Years since change of Brand
6% <1 1 to 2 29% 25% Maybe / Will test once No 46%

Would switch to better Value Offering

8% 39%

Yes

2 to 5
47% >5

19-04-2012

Marketing Management Project Report

13

3. Decision Makers
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
19-04-2012 Marketing Management Project Report 14

4. Other Factors Influencing Consumer Behavior

Personal Factors Economic Circumstances Age and Stage in Life
Sources of Information

Social and Cultural Factors

22%

7%

Sources of Information
7%
64%

TV Magazine Word of Mouth Point of Sale

19-04-2012

Marketing Management Project Report

15

Preferred Cooking Oil Brands

Others 3% Engine 6%

Upper Middle Income

Fortune 13% Emami 6%

Saffola 36%

Sundrop 23%

Nature Fresh 13% Refer to Exhibit 6

19-04-2012

Marketing Management Project Report

16

Preferred Cooking Oil Brands

Others 3%

Lower Middle Income

Engine 20%

Saffola 14%

Nature Fresh 9%

Fortune 17%

Sundrop 34%

Emami 3%
19-04-2012 Marketing Management Project Report

Refer to Exhibit 6
17

Marketing Mix

Marketing Mix Variables - 1

Product Value Stock Keeping Unit Quality Price Product Quality Pricing Lower quality oils branded, higher quality oils Value Pricing Brands offering similar benefits are priced differentially
Marketing Management Project Report 19

19-04-2012

Marketing Mix Variables - 2

Place Kirana stores, retail shops & wholesalers. Modern retail stores Every SKU & variant of oil is present Promotion Special offers Advertising

19-04-2012

Marketing Management Project Report

20

Thank You

19-04-2012

Marketing Management Project Report

21

Questions

19-04-2012

Marketing Management Project Report

22