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A REPORT

ON

MARKET SHARE OF HOME COOK REFIND

AT
BATHINDA CHEMICAL LTD.

A training report submitted in partial fulfilment of the requirements for the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by
GURVINDER SINGH
BBA 4th Sem
Roll no-102261111

DEPARTMENT OF MANAGEMENT

BABA FARID COLLEGE


DEON, BATHINDA

1
DECLARATION

I hereby declare that the project report entitled MARKET SHARE OF HOME COOK
REFIND AT BATHINDA CHEMICAL LTD. submitted in partial fulfilment of the
requirement for the degree of Bachelor of business administration of Baba farid college of
management, Deon, Bathinda is my original work and has not been submitted for the award
of any other degree at any other institute or university.

Date: GURVINDER SINGH


Roll No. 102261111
BBA 4th Sem

2
ACKNOWLEDGEMENT

A large number of individuals have contributed to project. This project is a humble


attempt to sketch done the contribution of all those persons who have directly or indirectly
given their precious time and help along with proper guidance for making this report in the
following shape.
I First of all I would like to thank ( Manager ) BATHINDA CHEMICAL LTD. for
providing me an opportunity to undergo this overwhelming learning experience at
BATHINDA CHEMICAL LTD.
I would like to express my deep gratitude to my training guide (Marketing Officer) for
helping me to cover my project at ) BATHINDA CHEMICAL LTD. and for his active
guidance, valuable advices & constant inspiration during my stay at ) BATHINDA
CHEMICAL LTD.
Lastly but not the least, I pay my gratitude to my parents, family members, friends,
faculty members & workers of Baba farid college of management and all executives of,
) BATHINDA CHEMICAL LTD for their moral support and whole hearted co-operation in
drafting this report.

3
CERTIFICATE OF COMPLETION

This is Certify that GURVINDER SINGH Student of BBA has successfully completed
her project titled MARKET SHARE OF HOME COOK REFIND AT BATHINDA CHEMICAL
LTD. under the guidance of __________________________________ This is in the
partial fulfillment of his BBA .

Dated:

EXECUTIVE SUMMARY

4
This project was undertaken to know about the complete Sales Structure and to know the
Market Share of HOME COOK Refined oils with its competitors.
The methodology used to complete project was personal interview of around 120 retailers
through a structured questionnaire. Along with this I even gathered data from Companys
website and also went through the annual report of the company to know the sales volume
and operating margins that they have. I also collected data from companys personnel, to
study the channel and sales structure.
BCL has a very different sales structure which has been discussed in the following pages.
In this project I went through all the details of channel structure & also I tried to know the
market share of HOME COOK with its competitors.
All the demands of consumer are taken care by Companys Depot, Dealers and Retailers.
The Company allows a 4% profit margin to their dealers/distributors. They also promote
their goods through various promotional activities.BCL has a safety stock plans which
never allow a company to be in shortfall stage of any product.
The company in advance, keeps the blank cheques from the dealers/distributors and asks
for DD from the new joining in the structure. They never allow any credit facility to any of
the channel members. The payment depends upon the transportation time of the order. The
moment the delivery of order is made the advance cheques are filled up with the required
amount and are deposited in the bank for clearance. DD are also been taken from such
dealers/distributor whose cheque gets bounce or the dealers economic condition is not
good as a penalty or safety reasons.
Company takes a great care in choosing its channel members. It has a set standard and
criteria for selecting its cannel members. Every channel member has to follow set of norms
which are the conduct guidelines for these channel members. They have to strictly stay
with these norms and any violence leads to blacklisting of the distributor.
The channel members are thus the most efficient persons who maintain a fine
communication link between the company and the end channel members. They from time
to time keeps both the side informing about the latest happenings and thus always support
the scope of improvement on either side.
After under going through this project I also came to know, more than 50 lakhs tones of oil
seeds are being imported in INDIA. In INDIA the production of oil seeds is not up to the

5
demand. So INDIA per year imports more than 50 lakhs of tones of oil seeds to sufficient
the consumers demand.
Being such an important part of sales structure the importance of distributor is still
neglected. The kind of treatment offered to the distributor from company and retailer both
is not appropriate. The company where neglect their distributors welfare by making strict
norms and not providing credit facility to the distributor the retailers on other hand treats
the sales person in an inhuman and unjust way. Thus it is a matter of consideration for both
the company and retailers and duty also to improve upon their conduct in this regard.
With such an efficient sales structure, company has done well in the recent past. With a
huge turnover the companys success and growth has always been favored. The company is
the ruler of its field with a maximum market share in its large product range.
Company no doubt is the best company in terms of vast product range and services to the
customer. But the incentives which are being offered to their distributors are less in
comparison to the type of services which they are offering to the company and its customer.
So if company can revise its incentive policy then this will certainly be a boosting factor for
the distributor which will ultimately prove beneficial for the company with respect to its
increase sales and turnover.
Company can also increase its promotion programmes for diversified product range so that
many of its brand which still do not have a market monopoly can gain such status and take
the company to best of its time which it has never seen before. By doing this they can
improve their market share and can work upon it.

TABLE OF CONTENTS

6
Certificate
Acknowledgement
Executive Summary

Sr. No. CHAPTER PAGE NO.


1. INTRODUCTION 1-30

2. OBJECTIVE AND SCOPE 31-32

3. RESEARCH METHODOLOGY 33-34

4. DATA ANALYSIS INTERPRETATION 35-47

5. FINDING RECOMMENDATION AND LIMITATION 48-50

6. CONCLUSION 51-53

7. BIBLIOGRAPHY 54-55

8. ANNEXURE 56-62

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CHAPTER-1
INTRODUCTION

8
COMPANYS PROFILE

BATHINDA CHEMICALS LIMITED

Bathinda Chemicals Limited is situated on Hazi Rattan Link Road in Bathinda. This Unit
was setup in 1978. Following items are manufactured in this unit:

Vanaspati
Refinery
Solvent Plant
Expellers
Rice Sheller

9
10
BRIEF HISTORY OF THE COMPANY
The company was established on 3.2.1976 as a Pvt. Ltd. Company under the
name of Bathinda Chemicals & Vanaspati Mills Pvt. Ltd.With Register of companies
Punjab, Himachal Pradesh & Chandigarh, at Jalandhar. The company initially started
solvent Extraction with the capacity of 40 TPD (tones per day) and started processing of
Rice Bean.
In 1979, the capacity of the solvent was doubled to 80 TPD and a12 TPD
Hydrogenation plant was installed for producing oil which was financed by PSIDC.
In 1980, the company increased its capacity by installing refinery and oil mill from
its own sources and the capacity of solvent extraction plant was raised upto 100 TPD.
In 1985 the company changed to Bathinda Chemicals Pvt. Td. It was converted
into a seemed Public Ltd. Company on 2.1.1989.
The company further increased the capacity of solvent extraction from 100TPD to
150 TPD by raising term loan of Rs. 80 Lacs from PSIDC in the year 1990.
In Aug 1991, the company was sanctioned Rs. 120 Lacs from PSICD for
installation of fresh solvent Extraction plant of 200 TPD to 25 TPD.
With the delicensing of Vanaspati Ghee in New Industrial policy announced on 25.7.199,
the company stopped manufacturing hard oil and the hydrogenation plant of company was
modified. So as to facilitate the manufacturing of Vanaspati.

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MAIN PRODUCT
The company is mainly producing Vanaspati Ghee and Home Cook Refined-edible
oil for human consumption the products of the company are being marketed in the
packets of 15 kg, 5lt, 2lt/kg and kg in the North and East (Indian State) the
company is having a well knitted dealers networks for marketing products and
having its sale depots situated in the states of U.P., Punjab, Haryana, J&K,
Rajasthan& H.P besides the union territory of New Delhi.
The company is marketing its products under the brand name of Rishi Shakti
and Star vegetable oil and Murli refined oil and the same got a very good
response from the different sections of the consumers.

RAW MATERIAL
The raw materials of the company are Cotton Seeds, Mustard Seeds, Sun Flower
Seeds, Palm Oil, Soyabean Seeds, Paddy Rice Bean and Film Oil.

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MAIN COMPETITORS

.M/s. Chandrashekhar Exports Pvt. Ltd. - India

Coastal Aquatic Proteins - India

Jai Bharat Enterprises - India

Chaitanya Solvex Private Limited - India

Vijay Solvex Limited - India

Jyoti Industries - India

Krishi Oils Limited - India

shri tirupati balaji sales - India

Shri Gulab Oil Products - India

Shivangi Oils (p) Ltd. - India

unique sugars ltd - India

Mitsui Oil Field Pvt Ltd - India

Betul Oils & Flours Ltd. - India

Sneha Foods - India

RUCHI SOYA - India

Pioneer Industries Ltd - India

Mandeep Oil Industries - India

Vippy Industries Ltd. - India

Khaitan Agro - India

Jaya Jyothi Industries - India

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MAP SYSTEM (INDIA) PRIVATE LIMITED - India

KS Oils Ltd - India

S a S Refineries (p) Ltd. - India

Sree Rayalaseema Alkalies and Allied Che - India

Raj Oil Mills Ltd. - India

Prem & Company Pvt. Ltd. - India

Shruti Petrochem - India

Reliable Group Pvt Ltd - India

M/s Krish Refineries Ltd. - India

Goyal Proteins Limited - India

Vinayak Agrtotech Ltd - India

ORGANIZATION STRUCTURE

BCL has many departments and brief working of these to as follow:


1. HRM Department: -

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The head of HRM department is Sh. A.L Singla main activities of this department
are as under:-

a) Manpower Planning.

b) To ensure employment of workers.

c) Welfare activities in the mill.

d) Record of attendance.

e) Salary and wages administration.

f) Liaison with External agencies.

2. Commercial Department: -

The head of commercial department is Sh. B.D Bindal. Main Activities of this
department are as under:-
a) Receipt and storage of raw materials.

b) Issue of raw material.

c) Receipt and storage of finished goods.

d) Dispatch as per marketing requirements.

e) Maintaining if excise records.

f) Liaison with excise authorities.

3. Engineering of Electrical Department: -

The head of this department is Sh. N.M. Bhanot. Main activities of this department
are as under:-

15
a) Power planning.

b) Services to other departments.

c) Efforts to minimum break down.

d) Humidity to maintain environment.

e) Sub-station to control the power.

f) Providing generator and other facilities

4. Marketing department: -

The head of this department is Sh. Krishan Bansal. Main Activities of this
department are as under:-
a) Customers development.

b) Processing order.

c) Collection of payment from customers.

d) Ensuring dispatches in time.

5. Maintenance Department: -

The head of this department is Sh. Deepak Tayal maintenance department is


involved in preparation of preventive maintenance schedule in order to avoid
machine breakage.
6. Accounts and Finance Department:-

The head of this department is Sh. S.N. Goyal. Main activities of this department
are as under:-
a) Control and supervision of finance of BCL.

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b) Control and supervision of accounts of BCL.

c) Taxation of group and individuals.

d) Guidance to associate members.

e) Clubbing of final balance sheet and notes etc

7. Purchase Department: -

The head of purchase department is Sh. Rakesh Mittal. The main activities of this
department are as under:-
a) To make continuous availability of materials.

b) To make purchase competitively and wisely at the most economical prices.

c) To make purchases is reasonable quantities to keep investment in materials


at minimum.

d) To purchase proper quality of materials.

e) To develop good supplier relationship.

f) To develop alternate sources of supply.

g) To adopt the most advantageous method of purchase.

h) To serve as an information centre on the materials knowledge relating to


prices sources of supply, specification, mode of delivery etc.

8. Stores Department: -

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The head of department is Sh. V.K. Bansal. The main activities of this department
are as under:-
a) To receive the stores correctly.

b) To keep every item of stores in its allotted bin.

c) To maintain the stores in an orderly and tidy manner.

d) To ensure that materials are issued only to those who present a duly signed
requisition note. To requisition from the purchasing department.

e) To insure that stocks do not exceed on the maximum levels or go below the
minimum level at any time.

f) To maintain and supervise the duties of the different members of staff under
his charge.

g) To prevent unauthorized persons from entering into stores.

SOURCE OF FINANCE
Working Capital management is mainly concerned with decisions relating to current assets
and current liabilities. This involves cash flow within an operating cycle (usually within a
year). We use two concepts - gross working capital and net working capital.

a) Gross working capital: It is total of all current assets.

b) Net working capital: It is difference between current assets and current


liabilities.

Current asset:

1) Account receivable: It is credit sales extended by company to its customer.

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2) Inventory: It consists of raw material, work in progress and finished goods.

3) Cash, bank loan & advances and marketable securities.

Current Liability:

1) Account payable: Credit extended by supplier to company.

2) Trade advances, borrowings, provision.

Typical conversion of current asset: First cash gets replaced by inventories of raw
materials and then by inventories of finished goods (also current assets). When the goods
are sold, the inventories give way to accounts receivable (another current asset) and finally,
when the customers pay their bills, the firm takes out its profit and replenishes the cash
balance.

The company starts the cycle by purchasing raw material. But it does not pay immediately.
This delay is called account payable period. The company processes the inventory and
converts it into finished good. Delay between initial investment and sale of inventory is
called inventory period. Customer also takes some time in paying the bill this delay is
called account receivable period.

Cash Conversion Cycle:

The length of time between the firms payment for its raw materials and the collection of
payment from the customer is known as the firms cash conversion cycle. To summarize,
Cash conversion cycle = (inventory period + receivables period) accounts payable period
Working capital deals with basically cash conversion cycle. The longer the production
process, the more cash the firm must keep tied up in inventories. Similarly, the longer it
takes customers to pay their bills, the higher the value of accounts receivable. On the other
hand, if a firm can delay paying for its own materials, it may reduce the amount of cash it
needs. In other words, accounts payable reduce net working capital. So smaller the cash
conversion cycle more efficiently working capital is managed.

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PROMOTERS OF THE COMPANY ARE

a) Mr. D.D Mittal:-

Mr. D.D Mittal is presently chairmen of the company and has been creatively
engaged in the day to day affairs of company, since its inception. He is having a
rich experience of around 44 years in the oil and cotton industry. He has been the
director of the solvent Extractors Association of Punjab in the year 1990
b) Mr. Rajinder Mittal:-

Mr. Rajinder Mittal is M.D of company born in April 1959 is a commerce graduate
and having a vast experience in the edible oil industry.
Mr. Rajinder Mittal is a pioneer in developing the Solvent extraction Plants with
latest technologies since 1976. He is spearheading the company. Under the
stewardship of Mr. Rajinder Mittal the company has grown manifold over the
years.
c) Mr. Vinod Mittal:-
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Mr. Vinod Mittal is a Mechanical Engineering and is the while time of Director of
Company. He is looking after Technical affairs of the company since 1985.
d) Mr. A.K. Sood:-

Mr. A.K Sood is a Professional Technical Consultant and is nominee of Punjab


State Industrial Development Corporation Limited (PSIDC) He is holding the office
of General Manager (Finance and Investment) in PSIDC , Chandigarh.
e) Dr. Rajan Sekhariya:-

Mr. Sekhariya is a Professional Technical Consultant and is that Managing Director


of M/s Mecpro Heavy Engineering Ltd; a leading company engaged in installation
of different types of edible oil plants and providing consultants in this regards.
T he Board of Directors of the company is supported by a dedicated, experienced
and well-equipped team of technical, commercial and legal professional.

SALES HIERARCHY

COMPANY

Around 20 in the States


DEPOTS

WHOLESELLER/ Above 1200 dealers


DEALER

21
RETAILERS More than 1 lakh

CUSTOMER

SALES: (Planning & Monitoring System)

Company follows very different type of sales structure. Sales target are being
given to the Depots. If they achieve their targets they are rewarded by incentives. They are
rewarded even they achieve 80% of total targets. Company has different steps for
incentives. These steps are followed while rewarding incentives to the Depots.

1. Monthly Sales Targets

For BCLs core business of VROs consumer packs have been set and effective
April 99 have become applicable uniformly across distribution channel i.e. both Dealer and
BCLs field force and for inducing/motivating them towards achieve these, separate
incentive schemes, for Dealer & field force, based on monthly sales have become
operational to achieve consistent monthly sales of refined oils. But these will not assure
uniform pack wise day to day sale nor will it lead to any specific sales pattern.

2. Product & Pack wise Daily Sales Expectation

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Product & pack wise daily sales expectation is needed to ensure NO LOSS of
SALES (due to stock-outs) with

(i) Minimum inventory holding of finished goods


(ii) Least cost dispatch scheduling
(iii) Optimum production scheduling
(iv) No over-stocking or shortages of packing

and this information as The Days Sales Plan ought to be available at least before and for
reasonable forecasting accuracy can at the most made 5 to 8 days ahead .

For any sudden & significant change in demand at one or more locations for one or more
specific product packs, it takes BCLs with existing facilities, system & practices at least 3
days to respond with correction and hence the planning span must be 3 days or more and
even with best of forecasting tools judgments, it should not exceeds 8 days and hence, to
start with, they propose 5 planning periods of 6 days each in month
(Namely 1 6, 7 12, 13 -18, 19 24, 25 last day).
The plan for effective & efficient operations is made for each depot, the point of primary
sale and for each primary customer, dealer by breaking-up the monthly sales target for the
dealer into product-pack wise plan for each of the 5 periods.
After under going through this project I also came to know, more than 50 lakhs tones of oil
seeds are being imported in INDIA. In INDIA the production of seeds is not up to the
demand. So INDIA per year imports more than 50 lakhs of tones of oil seeds to sufficient
the consumers demand.

Incentive Scheme

Incentives are given by following these steps:

Target achieved (in percentage) Incentive Per liter

80% -99 20 paisa

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99% - 100% 30 paisa

100% - 110% 40 paisa

More Than 110% 60 paisa

These steps are followed by company while giving any incentives to the follower.

These incentives are given on the excessive sales of the each follower e.g.
If dealer achieves 150% of the targets, he will be rewarded by incentives, but following
steps are considered before giving incentives,

Up to 99% achieved targets he will be rewarded 20 paisa per liter refined oil sold. More
than 99% but up to100% of the target he will be rewarded 30paisa per liter refined oil sold,
more than 100% but less than 110% of the sales target, he will be rewarded40 paisa per
liter sold. More than 110% of the refined oil sold, he will be rewarded 60 paisa per liter.

Distribution Channel

Company has wide range of distribution channel where all the activities are being
operated. Produced refined oils are sent to different Depots which are located in different
states. Company has around 32 depots in the whole country. After that the refined oil are
sent to the dealer of refined oils whatever the demand is from the dealer. From Dealers
refined oils are sent to the Retailers. Company has around 1200 dealers in the country.

Inventory Size

24
Company always maintains a safety stock size of 7 to 10 days in their godowns in
order to meet their distributors demand. This is even done in order to meet any unfavorable
conditions including strikes, non availability of raw materials, or any disturbance in their
production due to technological or other problems.
For any shortage they even have their buffer stocks also. The requirement for the
month is generated in advance with the help of their database since they maintain a track
record of their distributors requirement which help them to decide upon their production
for the month.

At Distributor level:

Company asks its distributor to maintain a stock size of at least 7 days in order to
ensure availability of product of products to their end channel members. At the time of any
shortage they can place an order on telephone otherwise orders are being placed on their
website.

Placement of Order

Such an order placement is called primary placement of order by the company. It


is based on the daily sales.

25
Whole of the process is computerized. The company gets order from its various
distributors on its websites and also receives order on phone calls. At the end of the day all
the orders are being jotted at one place. After this the bills are being produced and the
goods are being released from the stores based on the bill details. These are then being
loaded on to different vehicles and are being transported to different places as mentioned in
the bills.

Financial Terms
For the payments to the company there are following two modes of payment

1. Advance Demand drafts:


Such a mode of payment is applied under following condition
When there is any new appointment then in order to build trust they ensure
payments through advance demand drafts for coming three months.

If company feels that dealer or distributors financial position is loose then


company asks them to make advance payments through demand drafts.

If dealer or distributors cheque bounces than they are ask to make


payments through demand drafts for the next three months.

2. Cheque Payments:

When the company has built up trust on its dealers or distributors then the
company accepts the payments in cheques also.
For this purposes the dealers or distributors are asked to submit three blank signed
cheques in advance with the company as a security. As soon as the delivery is made to the
distributor, the cheque is deposited in the bank for clearance and so it becomes the moral
responsibility of the distributors to make sure that the cheque does not bounce. Billing is
only done to those distributors who have minimum 3 cheques in advance deposited to the
company.

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Company has no provision of credit payments. All the payments are either being
made in advance or as soon as the goods are being delivered to the dealers or distributors.
No credit time is being given to the distributor for the payments as such they get an
advance payments even from weak dealers or distributors.

Transportation

All the expenses of transportation, from


company to depots and depots to dealers are met by the
company. Company has 1200 dealers in the country;
those dealers are covered by 32 depots. All the demand
from the customers and from retailers is fulfilled by the
dealers.

Promotional Activities
Company from time to time takes out various promotional schemes and activities in
order to appreciate their channel members. The promotional schemes include special
incentives to those channel members who complete their sales targets being given by the
company from time to time.

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The company even organizes Chairman meeting for the channel members where they
get an opportunity to meet the chairman and have conversation so that they can feel special.
The company even introduced a promotional programme by organizing a trip to
Bangkok, Singapore, Hongkong for those channel members who fulfill their target for
sales.
The Company even organizes a program to reward to maximum seller of the refined
oils. Company gives prizes on the performance. According to the final results of the
dealers, company rank the all dealers and prizes are given to 1st, 2nd and 3rd rank holder.
The company also has a draw scheme. Under the draw scheme the entire dealers name
put on the paper and a chit is prepared containing name of all the dealers. After that their
names are randomly selected and then prizes are given to dealers whose name comes into
that chit.
This draw scheme is basically provide Motivation to those dealers who were not able
to achieve the maximum sales target. In this scheme all the top three rank holders name are
also written in the lucky draw scheme. They also have opportunity to win the lucky draw
prizes. They have equally chance to win the lucky draw prizes.

Market Research

Company from time to time conducts marketing research to gather information on different
aspects as being required by the company.
Depending up on the type of requirement the company conducts market research
with respect to the

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Customers

For the information regarding new product launch or time to time changes
in the different product range hold by the company.

Channel Members

For the information regarding various policies being hold by the company
for its sales and even to discuss out the changes in the sales pattern with
regard to some new policy if adopted by the company

General Market Survey

For the information regarding companys and its different product ranges
performance which is necessary for reviewing companys performance from
time to time.

For collecting these data they make use of their own resources as well as they take help of
some organization for these marketing research. For this purpose they spent lakhs of rupees
every year. Telling exact figures in this regard would be difficult as the expenses vary from
time to time depending upon what type of information has to be gathered and sources to be
applied.

Expectation

29
Company expect from all its dealers and wholeseller that whatever sales target and
infrastructure is provided to them by the company they would be fulfilling it with full
honesty and would always lay their helping hand in companys success as company rest on
them.

CHAPTER-2
30
OUT LINE OF THE
STUDY

OBJECTIVES OF THE STUDY

To know the market share of Home Cook Oil

To know about the packing of Home Cook Oil

31
SCOPE OF THE STUDY

The scope of the study is very vital. Not only the Human Resource department can use the

facts and figures of the study but also the marketing and sales department can take benefits

from the findings of the study.

Scope for the sales department

The sales department can have fairly good idea about their employees, that they are

satisfied or not.

32
Scope for the marketing department

The marketing department can use the figures indicating that they are putting their efforts

to plan their marketing strategies to achieve their targets or not.

Scope for personnel department

Some customers have the complaints or facing problems regarding the job. So the

personnel department can use the information to make efforts to avoid such complaints.

33
CHAPTER-3
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It may be understood
has a science of studying how research is done scientifically. In it we study the various
steps that all generally adopted by a researcher in studying his research problem along with
the logic behind them.
The scope of research methodology is wider than that of research method.
Meaning of Research
Research is defined as a scientific & systematic search for pertinent information on a
specific topic. Research is an art of scientific investigation. Research is a systemized effort
to gain new knowledge. It is a careful inquiry especially through search for new facts in
any branch of knowledge. The search for knowledge through objective and systematic
method of finding solution to a problem is a research.

34
RESEARCH DESIGN
A research is the arrangement of the conditions for the collections and analysis of the data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. In fact, the research is design is the conceptual structure within which research
is conducted; it constitutes the blue print of the collection, measurement and analysis of the
data. As search the design includes an outline of what the researcher will do from writing
the hypothesis and its operational implication to the final analysis of data.

CHAPTER-4
35
DATA ANALYSIS AND
INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Q.1 NAME OF THE BRAND OF REFINED OILS, WHICH YOU KEEP IN


STOCK

This question was asked to know about the type of brand of refined oils which retailers
keep in their stock. (In percentage)

36
According, to the market research, all the retailers keep the following brand of refined oils
in their stock.

1. Fortune
2. Ginni
3. Home Cook

99% of retailers keep Nutrela refined oil, 98% of the retailers keep Gemini refined oil,
83% of retailers keep Saffola refined oil and 67 % of retailers keep other brand of refined
oils (gaurav, raag, avsar, refined oils etc.).

Q. 2 WHAT DIFFERENT PACKS ARE AVAILABLE OF THE


FOLLOWING
100 BRANDS?
100 100 100 100 100
100
This question was asked to know the various packs of refined oils which retailers keep in
the stock.
90
84

1 liter packs (in percentage)


For 80

70

60

50 37
FORTUNE GINNI GEMINI NUTRELA HOME COOK SAFFOLA OTHERS
According to market research, all retailers keep 1 liter pack of following brand of refined
oils.

1. Fortune
2. Ginni
3. Gemini
4. Nutrela
5. Home Cook
6. Saffola

And 84% of retailers keep 1 liter pack of other brand of refined oils.

For 2 liter pack100


(in percentage)
100 100 100
100 98

90 85

80

70
60
60

50

38
According to market research, all the retailers keep 2 liter packs of following brand of
refined oils.

i. Fortume
ii. Ginni
iii. Gemini
iv. Home Cook

But 98% of retailers keep 2 liter pack of nutrela refined oil, 85% of retailers keep 2 liter
pack of saffola refined oil and 60% of retailers keep pack of 2 liter of other brand of
refined oil.

100 100 100 100


100
92
89
For905 liter pack (in percentage)

80

70
70

60

50

39
According to market research, all the retailers keep 5 liter packs of following brand of
refined oils.

1. Fortume
2. Ginni
3. Nutrela
4. Home Cook

But 92% of retailers keep 5 liter pack of Gemini refined oil, 89% of retailers keep 5 liter
pack of saffola refined oil and 70% of retailers keep 5 liter pack of other brand of refined
oil.

105
100 100 100 100
100

For 15 liter pack (in percentage)


95 93

90

85 84

80

75

40
According to market research, all the retailers keep15 liter packs of following brand of
refined oils.

1. Fortume
2. Ginni
3. Nutrela
4. Home Cook

But 93% of retailers keep 15 liter packs of Gemini refined oil, no retailers keep 15 liter
pack of saffola refined oil and 84% of retailers keep 15 liter pack of other brand of refined
oil.

Q. 3 WHICH OF THE FOLLOWING PACK OF REFINED OILS ARE


MOSTLY SOLD?

This question was asked to know about the packing wise sales of the Refined Oil of all
the Retailers.

S.No. Name of For 1 liter For 2 liter For 5 liter pack For 15 liter
Refined Oils pack pack pack

41
1 Fortune 23% 21% 22% 19%

2 Ginni 18% 22% 20% 21%

3 Gemini 19% 16% 19% 16%

4 Nutrela 14% 12% 13% 17%

5 Home Cook 10% 13% 12% 11%

6 Saffola 7% 10% 10%

7 Others 9% 6% 4% 16%

Total 100% 100% 100% 100%

This is the breakup of pack wise sales of all the retailers. These values have been calculated
on the basis of average sale of each retailer. The analysis of this part has been discussed in
the following pages.

For 1 liter pack

First row shows that, out of 100 packs of refined oils of 1 liter, fortune refined oils
contributing 23% of the total sales, Ginni refined oils contributing around 18% of the total
sales, Gemini refined oils contributing 19% of total sales, Nutrela refined oils contributing
14% of the total sales, Home Cook refined oils contributing 10% of the total sales, Saffola
refined oils contributing 7% of the total sales, others brands of refined oils (Gaurav, Avsar,
Raag etc.) contributing 9% of the total sales.

42
For 2 liter pack

Second row shows that, out of 100 packs of refined oils, Fortune refined oils contributing
19% of the total sales, Ginni refined oils contributing 24% of the total sales, Gemini refined
oils contributing 16% of the total sales, Nutrela refined oils contributing 12% of the total
sales, Home Cook refined oils contributing 13% of the total sales, Saffola refined oils
contributing 10% of the total sales, Others brand of refined oils contributing 6% of the total
sales.

For 5 liter pack

Third row shows that, out of 100 packs of refined oils, Fortune refined oils contributing
22% of the total sales, Ginni refined oils contributing 20% of the total sales, Gemini refined
oils contributing 19% of the total sales, Nutrela refined oils contributing 13% of the total
sales, Home Cook refined oils contributing 12% of the total sales, Saffola refined oils
contributing 10% of the total sales, Others brand of refined oils contributing 4% of the total
sales.

For 15 liters pack

Fourth row shows that, out of 100 packs of refined oils, Fortune refined oils contributing
19% of the total sales, Ginni refined oils contributing 23% of the total sales, Gemini refined
oils contributing 15% of the total sales, Nutrela refined oils contributing 17% of the total
sales, Home Cook refined oils contributing 10% of the total sales, Others brand of refined
oils contributing 16% of the total sales. Saffola has no contribution in 15 liters pack of
refined oil. According to the market research, no retailer keeps 15 liter pack of refined oil
in their stock. According to them no body purchases that much of refined oil of Saffola

43
Q. 4 WHAT IS YOUR AVERAGE SALES PER MONTH?
(in liter percentage)
This question was asked to know about the maximum sales of the retailers on monthly
basis.

Less than Between More than


100 liters 100-500 liters 500 liters

1. FORTUNE 100%

44
2. GINNI 100%
3. GEMINI 2% 98%
4. NUTRELA 8% 92%
5. HOME COOK 100%
6. SAFFOLA 31% 45% 24%
7. OTHERS 59% 41%

According to the market research, Fortune refined oil is sold more than 500 liters by all the
retailers, same in the case of Ginni & Home Cook refined oil. Both are sold more than 500
liters by all the retailers.
But in the case of Gemini refined oil there were 98% retailers, who were selling more than
500 liters and there were 2% retailers, who were selling less than 500 liters but more than
100 liters.
In the case of Nutrela refined oil there were 92% retailers, who were selling more than 500
liters, there were 8% retailers, who were selling less than 500 liters but more than 100
liters.
In the case of Saffola there were 31% retailers who were selling less than 100 liters and
also there were 45% retailers, who were selling more than 100 liters but less than 500 liters
and there were 24% retailers, who were selling more than 500 liters.
There were 59% retailers, who were selling between 100 to 500 liters of Other brand of
refined oil, and there were 41% retailers who were selling more than 500 liters.

Q. 5 DO YOU RECOMMEND ANY BRAND TO CUSTOMERS?

(a) YES (78%)

(b) NO (22%)

This question was asked to know about, recommendation of retailers to the customer. This
question was asked to know, do they recommend any brand to customer and if they
recommend to customer any brand, on what basis they recommend for a particular brand to
customers. This question was asked because some times customer seeks recommendation

45
for a particular brand of refined oil, which brand of refined oil should be used? And also
customer wants know about the brand, which are cheep and the best for them.
Recommendation differs from customer to customer. Then they were asked, on what basis
they recommend any particular brand of refined oil to customer. Because some customers
seeks for brand for the quality and some customer seeks recommendation for the
availability and for the prices of the refined oils. Main emphasis of asking this question was
what a retailer thinks about the particular brand. What perception he is having over a
particular brand. Then to know about their perception of the brand the following steps were
taken,

IF YES, WHAT BRAND DO YOU RECOMMEND TO CUSOMERS?

Basis

(i) FORTUNE (b) & (c)


(ii) GINNI (a) & (b) & (c)
(iii) GEMINI (a) & (c)
(iv) NUTRELA (c) & (d)
(v) HOME COOK (a) & (b)
(vi) SAFFOLA (b) & (c) & (e)
(vii) OTHERS .. (a)

Basis

(a) PRICE
(b) QUALITY
(c) AVAILABILITY
(d) PACKAGING
(e) HEALTH
(f) OTHERS ..

Continued

According to the market research, the brands of refined oil which they normally
recommend to customers are Fortune & Ginni & Home Cook .
Other brand that they recommend to customer based on the different parameter like Nutrela
is recommended because of the availability and the packing style of the brand. The basic

46
reason for recommending Saffola is health. Saffola is available at every place where you
want it and it is also a best quality product if we talk about the health.
Gemini is recommended because of the price and availability.
Other brand is normally recommended for the pricing and other local brand also has huge
sale in the market. These brands are generally recommended on the party occasion or any
event.

OVERALL MARKET SHARE


OF ALL THE COMPANIES

47
Market share of companies has been calculated on the basis of overall performance of the
companies.

48
CHAPTER-6

FINDINGS
RECOMMENDATI
ONS
& LIMITATIONS

RECOMMENDATIONS

49
Undergoing company sales structure and studying companys sales pattern, it is
evident that if company has been able to achieve the most famous and preferred company
by its customer than it is because of its sales pattern also. Company maintains a huge
turnover because of its strict but direct sales policy. Thats why company has been able to
achieve 17%-18% market share.
Company has strict norms for its distributors to follow which sometimes its
distributor are not able to comply with and has to leave its distributorship. Such strict
norms leads to feeling of discontentment in the distributors so the company should take a
serious step in order to check out the norms so that distributor can feel comfortable with.
The margin offered to the distributors by the company is 4% on the profit
which was around 7% few years back. But then company decreased it by 3%. This much
profit margin as reported by the distributor/dealers is less since they have to meet several
requirements to achieve the target been given by the company. So company should increase
its profit margin in order to meet the distributors requirement. Moreover this would
increase their distributor efficiency and loyalty and would result into increase sales. Best
would be to make it at least 6% again.
Company still lacks in providing sufficient knowledge to its customer
regarding its product range. They should do rather more promotional activities so that the
customer can come to know about their product range and also about the benefits that they
will be getting by using this particular product. They can create more & more customers by
doing these kinds of activities. They can even help people by suggesting right product to
their requirement. This would again help the company to further enhance its image
increasing the sales of its product.
Company holds a good image in the eyes of its distributor/dealer as it has
always looked for their benefits but still if the company can provide the credit facility to its
dealers/distributor then it would really please the distributor and will ultimately work for
the benefit of their company.
No doubt that company has maintained a complete balance between in its business.
Company has been doing wonders in the past and is capable of doing even much in present
and future. All they need is a quick recollection of its caliber and implementing above
recommendations which would really prove to be worth for their business.

50
LIMITATIONS OF THE STUDY

However I shall try my best in collecting the relevant information for my research report,
yet there are always some problems faced by the researcher. The prime difficulties which I
face in collection of information are discussed below:-
1. Short time period: The time period for carrying out the research was short as a
result of which many facts have been left unexplored.
2. Lack of resources: Lack of time and other resources as it was not possible to
conduct survey at large level.
3. Unwillingness of respondents: While collection of the data many consumers were
unwilling to fill the questionnaire. Respondents were having a feeling of wastage of
time for them.
4. Small area for research: The area for study was Bathinda, which is quite a small
area to judge job satisfaction level.

51
CHAPTER-5
CONCLUSION

CONCLUSION

After under going this project & also sales behavior, it was concluded that
company maintains strict sales policy while choosing its channel member thats why

52
company is able to achieve a market share around 17%-18% of the total market. This
market share has been calculated on the basis of the total performance of the company.
According to market research information I got a reasonable performance from
Ginni refined oil. Which is around 17%-18%, and this percentage can be considered as a
good market share. There are so many players of refined oils out there in the market, which
has not been discussed in this market research. But they have captured market very well
because of the availability and less pricing.
This research discus quite more about the market performance of Ginni even if all
the market players are considered in the research. But it is also seen that local players of
refined oils are also measured as the biggest player of the refined oil market the local
players can not be neglected.
Company also keeps safety stock around 7 to 10 days into its warehouse. And
company also forces to its dealers to keep safety stock of at least 5 7 days. Company also
meets all the expenses of the transportation.
One of the good and bad aspects of their sales structure is that they dont provide
credits to their dealers. By doing this they get to collect their revenues easily from the
market. This help in knowing their total revenue and then they can even decide for proper
allocation of their wealth even.
The bad part of this aspect is that it does help them in trust building which is
equally important for them. Their channel members are one of the important pillars of their
companys success. So it is very much important for the companys overall success that
there should be proper trust relation among their members. So company should look
forward for this aspect also.
Then the norms made by the company for its distributor/dealers are also very harsh
because of which many of its channel members do not want to continue. This can again be
a negative side for the company. This has to be checked as it is not going to prove fruitful
in long run race.
No doubt with companys present performance is up to the mark and companys
strategies, whatever they make and whatever they think upon, are working pretty well but if
the company wants to be out there in the market for long time then company will have to
make a balanced growth.

53
54
CHAPTER-7
BIBLIOGRAPHY

BIBLIOGRAPHY

www.google.com

www.BCL.com

55
Mr. Parshant Mohan

Mr. Janak Raj Lekhi

56
ANNEXURE

ANNEXURE
MARKET RESEARCH ON REFINED OILS
Questionnaire for the Retailers

Q. 1 NAME OF THE BRAND OF REFINED OILS, WHICH YOU KEEP IN


STOCK?

57
(i) FORTUNE
(ii) GINNI
(iii) GEMINI
(iv) NUTRELA
(v) HOME COOK
(vi) SAFFOLA
(vii) OTHERS ..

Q. 2 WHAT ARE THE DIFFERENT PACKS AVAILABLE OF THE FOLLOWING


BRAND?

IN LITERS

1 2 5 15

(i) FORTUNE
(ii) GINNI
(iii) GEMINI
(iv) NUTRELA
(v) HOME COOK
(vi) SAFFOLA
(vii) OTHERS

Q. 3 WHICH OF THE FOLLOWING PACK OF REFINED OILS ARE MOSTLY


SOLD? (per 100 pack)
IN LITERS

1 2 5 15

(viii) FORTUNE
(ix) GINNI
(x) GEMINI
(xi) NUTRELA
(xii) HOME COOK
(xiii) SAFFOLA
(xiv) OTHERS

Q. 4 WHAT IS YOUR AVERAGE SALES? (per month)

(i) FORTUNE
(a) > 100 liters (b) 100 300 liters (c) < 300 liters

58
(ii) GINNI
(a) > 100 liters (b) 100 300 liters (c) < 300 liters

(iii) GEMINI
(a) > 100 liters (b) 100 300 liters (c) < 300 liters

(iv) NUTRELA
(a) > 100 liters (b) 100 300 liters (c) < 300 liters

(v) HOME COOK


(a) > 100 liters (b) 100 300 liters (c) < 300 liters

(vi) SAFFOLA
(a) > 100 liters (b) 100 300 liters (c) < 300 liters

(vii) OTHERS ..
(a) > 100 liters (b) 100 300 liters (c) < 300 liters

Q. 5 DO YOU RECOMMEND ANY BRAND TO CUSTOMER?

(a) YES (b) NO

IF YES, WHAT BRAND DO YOU RECOMMEND TO CUSOMER?

(viii) FORTUNE
(ix) GINNI
(x) GEMINI
(xi) NUTRELA
(xii) HOME COOK
(xiii) SAFFOLA
(xiv) OTHERS ..

ON WHAT BASIS,

(g) PRICE
(h) QUALITY
(i) AVAILABILITY
(j) PACKAGING
(k) OTHERS ..

59
RECOMMENDATION (to any brand of refined oils)

(i) FORTUNE .
(ii) GINNI .
(iii) GEMINI .
(iv) NUTRELLA
(v) HOME COOK
(vi) SAFFOLA
(vii) OTHERS .

PERSON CONTACTED

NAME:

ADDRESS: .

TEL. NO: ..

THANK YOU

Questionnaire

(Sales and Marketing department)

1. What type of sales organization structure do you possess?

60
2. What are the various links between you and the customer?

3. What are the various criterion/terms and conditions of selecting your channel
members?

4. What is the average stock you keep?

5. What are the various modes of transportation adopted and cost incurred in ordering
stock?

6. What are the methods of measurement and frequency of appraising the channel
members?

7. What are the modes by which you receive your payments

i) Advance payment ii) Payment on Delivery iii) Credit payments

8. In case you provide the credit period, what is the time limit?

i) No credit period ii) 10-15days iii) 15-30 days iv) <30 days

9. What are the margins you provide to your Channel Members?

10. How do you assign targets to your channel members and what type of targets?

11. Do you support your Channel Members by promotional activities?

a) YES b) NO

If Yes, i) Number of Promotions.


ii) Timing of Promotions.
iii) Quantity of Promotions.

12. What all do you expect from your channel members?

............................................................................................................................................
............................................................................................................................................
............................................................................................................................................
......................................................................................................................

13. Have you ever gone for market research?


a) YES b) NO
If Yes, w.r.t. whom?
Customers

61
Channel Members
General market survey

14. How frequently you do market research?

62
THANKYOU

63