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)

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

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,(marketingdirector) & other staff member of sterling coconut oils &cakes (p) ltd.

RESMI.MOHAN

CONTENTS

DESIGN OF THE STUDY (CHAPTER 1) Introduction Statement of the problem Scope of the study Objective of the study Limitations of the study RESEARCH METHODOLOGY (CHAPTER 2) Review of literature COCONUT A HISTORY (CHAPTER 3)

7 8 9 11 12 13 14 17 21

STERLING COCONUT OIL & CAKES(P)LTD A PROFILE 26 (CHAPTER 4) FUNCTIONAL AREAS ( CHAPTER 5) DATA ANALYSIS & INTERPRETATION (CHAPTER 6) Swot analysis of Thanima segment Findings Suggestions & recommendations 37 41 44 57 58

Conclusion

62

LIST OF TABLES

TABLE.NO TITLE

PAGE.NO

FAMILIARITY OF THE BRAND NAME THANIMA

45

BRAND PREFERENCE

47

THE QUALITY NORMS OF THE CUSTOMERS

49

INTRODUCTORY OFFER SCHEMES

51

THE PLACE OF PURCHASE

53

THE EFFECTIVE TOOL OF ADVERTISEMENT

55

LIST OF DIAGRAMS

FIGURE .NO

TITLE

PAGE.NO

FAMILIARITY OF THE BRAND NAME THANIMA

46

BRAND PREFERENCE

48

THE QUALITY NORMS OF THE CUSTOMERS

50

INTRODUCTORY OFFER SCHEMES

52

THE PLACE OF PURCHASE

THE EFFECTIVE TOOL OF ADVERTISEMENT

55

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 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 asThanima 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 todays 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 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 its 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
9

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 of oil seeds etc. Consumers 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 Thanimas promotional efforts on consumers demand Quality, Price of coconut oil Brand loyalty and switching

11

 Product attributes. 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 worlds 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 fruitbearing 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 27C 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 Thanimas 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 500 ml Pet bottle 200 ml pet bottle 1 ltr pouch 200 ml pouch 500 ml pouch 1 ltr HDPE bottle 500 ml HDPE bottle 200 ml HDPE bottle 5 ltr can 2 ltr can 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
30

 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
31

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 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

32

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.

33

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

35

figures. By constantly monitoring various operational activities cost control and cost reduction are facilitated.

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 Coordination 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.

36

ORGANIZATION CHART

MANAGING DIRECTOR

DIRECTOR

GENERAL MANAGER

PRODUCTION MANAGER

HUMAN RESOUCE MANAGER

FINANCE MANAGER

PURCHASE MANAGER

STORE MANAGER

MARKETING MANAGER

SUPERVISOR

PERSONAL OFFICER

FINANCE OFFICER

SUPERVISOR

SUPERVISOR

SALES OFFICER

WORKERS

EMPLOYEES

CLERKS

WORKERS

WORKERS

SALES STAFF

37

CHAPTER.6 DATA ANALYSIS AND INTERPRETATION

38

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 the factors influencing customers preference, questions were graded on a five point scale. Response choices were given weightage in the following manner.

RESPONSE CHOICE STRONGLY AGREE AGREE NO OPINION DISAGREE STRONGLY DISAGREE

SCORING WEIGHT 5 4 3 2 1

THE FORMULA USED FOR CALCULATING THE INDEX(KERLINGER 1970) IS GIVEN BELOW:

INDEX =

TOTAL SCORE OF THE STATEMENT

__________________________
MAX SCORE OF THE STATEMENT

* 100

39

Each respondent was asked to indicate the description that most suited feeling towards the statements. The individuals total attitude score is represented by the algebraic summation of scores assigned to each statement. The objective was to make a comparative evaluation of 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 companys 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.

40

SWOT ANALYSIS OF THANIMA COCONUT OIL SEGMENT STRENGTH

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.

41

TABLE 1 FAMILIARITY ABOUT THE BRAND NAME THANIMA

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.

42

FIGURE 1

FAMILIARITY ABOUT THE BRAND NAME THANIMA

60 50 40 30 20 10 0 YES NO

NO OF RESPONDENTS

43

TABLE 2

BRAND PREFERENCE

PARTICULARS

NO OF RESPONDENTS

PERCENTAGE

ORDINARY COCONUT OIL

56

56

KPL

21

21

THANIMA

14

14

KERA

OTHERS

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.
44

FIGURE 2

BRAND PREFERENCE

45

TABLE 3

THE QUALITY NORMS OF THE CUSTOMERS

PARTICULARS

NO OF RESPONDENTS 13

PERCENTAGE 13

BRAND NAME 23 PRICE 5 ADVERTISEMENT 2 PACKING 57 NO COMPLAINT 100 TOTAL 100 57 2 5 23

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.

46

FIGURE 3

THE QUALITY NORMS OF THE CONSUMERS

47

TABLE 4

INTRODUCTORY OFFER SCHEMES

PARTICULARS

NO OF RESPONDENT

PERCENTAGE

PRICE REDUCTION

54

54

MONEY SAVER PACK

34

34

SOME QUANTITY FREE

10

10

OTHER OFFERS

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.

48

FIGURE 4

INTRODUCTARY OFFER SCHEMES

60 50 40 30 20 10 0 PRICE REDUCTION MONEY SAVER PACK SOME QUALITY FREE OTHER OFFERS

49

TABLE 5

THE PLACE OF PURCHASE

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.

50

FIGURE 5

THE PLACE OF PURCHASE

70 60 50 40 30 20 10 0 SUPER MARKET STATIONARY SHOP NO OF RESPONDENTS GROCERY SHOP

51

TABLE 6

THE EFFECTIVE TOOL OF ADVERTISEMENT

PARTICULARS

NO OF RESPONDENTS

PERCENTAGE

TELEVISION

41

41

RADIO

19

19

NEWSPAPER

25

25

MAGAZINES

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.

52

FIGURE 6

THE EFFECTIVE TOOL OF ADVERTISEMENT

TELEVISION RADIO NEWSPAPER MAGAZINES WEEKLY

53

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. 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

54

SUGGESTIONS AND RECOMMENDATIONS

55

SUGGESTIONS > SAMPLE BOTTLES.

> THE PRODUCT SHOULD BE MOSTLY AVAILABLE MOSTLY IN SUPPER MARKETS AND ORDINARY. > ENSURE A STEADY DISTRIBUTION SYSTEM.

> COMPETITIVE COUPON SHOULD BE PROVIDED TO THE CUSTOMERS.

> STEP SHOULD BE TAKEN TO PROVIDE PRODUCT AVAILABLE TO MORE PLACES.

56

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. 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
57

given to them. So in customers mind the probability of winning chances increases this promote them to buy the product regularly.

ADVERTISEMENTS 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.

58

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 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.

59