Minor Project Report On Market Potential of Rice Powder by Jayabharath Modern Rice Mill

MARKET POTENTIAL OF RICE POWDER BY
JAYABHARATH MODERN RICE MILL
By
AKARESH JOSE (2015-31-009)
MINOR PROJECT REPORT
Submitted in partial fulfillment of the

requirements for the Post Graduate Degree of
MBA IN AGRIBUSINESS MANAGEMENT
Faculty of Agriculture
Kerala Agricultural University
COLLEGE OF CO-OPERATION, BANKING AND MANAGEMENT

VELLANIKKARA, THRISSUR- 680656
KERALA, INDIA
2017
Declaration
DECLARATION
I, hereby declare that this project report entitled Market Potential of Rice Powder by
Jayabharath Modern Rice Mill is a bonafide record of work done by me during the course of
project work and that it has not previously formed the basis for the award to me for any
degree/diploma, associateship, fellowship or another similar title of any other University or
Society.
Place: Vellanikkara Signature
Date: 17-04-2017 AKARESH JOSE
(2015-31-009)
Certificate
CERTIFICATE
Certified that this project report entitled Market Potential of Rice Powder by
Jayabharath Modern Rice Mills is a record of project work done independently by
AKARESH JOSE (2015-31-009) under my guidance and supervision and that it has not
previously formed the basis for the award of any degree, fellowship, or associateship to him
Place: Vellanikkara Dr. R. SENDIL KUMAR

Date: PROFESSOR (AGRICULTURAL EXTENSION)
CCB&M
KAU Vellanikkara
CERTIFICATE
I, the undersigned members of the advisory committee of Mr. AKARESH JOSE (2015-31-
009), candidates for the degree of MBA in Agribusiness Management, agree that the project
work entitled Market Potential of Rice Powder by Jayabharath Modern Rice Mill may be
submitted by Mr. AKARESH JOSE (2015-31-009), in partial fulfillment of the requirement
for the degree.
Dr. R. SENDIL KUMAR

PROFESSOR (AGRICULTURAL EXTENSION)
College of Co-operation, Banking & Management
Kerala Agricultural University
Acknowledgement
ACKNOWLEDGEMENT
This report could not have been in its present form without the timely advices, guidances, help,
and prayers of an ample lot of well wishers. To them, who had remained with me as a constant
inspiration, I place our advent resolution.
First, I bow to the blessings shored upon us without which the completion of this report would
not have been possible.
I bestow my abyssal indebtedness and gratefulness Dr. R. SENDIL KUMAR, PROFESSOR

(AGRICULTURAL EXTENSION), CCBM my esteemed guide, for her valuable guidance,
tremendous support and valueless patience during the course of my project work, even in the
midst of her busy schedules. Though words cannot express my utmost gratefulness to her, I
feel heaven to place my boundless gratitude unreserved for her always.
I wish to express my profound sense of gratitude and solemn indebtedness to Dr. Molly Joseph
Associate Dean, CCBM for their constant inspiration and motivation.
I would like to place on record of my heartfelt thanks to Associate Director Dr. A. M. Jose for
his constant inspiration and motivation throughout my academic career.
I express my heartfelt thanks to Mr. K.P. Sathian, Librarian, and other library staffs of CCBM
for all their help and support.
Word of thanks to all the office staff for all the help given by them. In addition, I like to thank
all the staff of Central Library who extended a hand of help.
Words fail to express my respectful thanks to Mr. Mohamed Ghani (The Managing Partner)
Market Potential of Rice Powder by Jayabharath Modern Rice Mill for their valuable
information and moral support provided during the project work. I am also thankful to all the
Office staff in Jayabharath Mills, for their help and cooperation during my project work.
I thank God for giving us the worlds best parents, care sister, lovable relatives, committed
teachers, devoted friends as Ill as great opportunities and nice experiences. Finally, I would
like to thank everybody who was important to the successful realization of this report, as Ill as
expressing my apology that I could not mention personally one by one.
I would also use this opportunity to beg to pardon to all those who have ever been hurt,
knowingly or unknowingly by my words and deeds.
For any errors or inadequacies that may remain in this work, of course, the responsibility is
entirely my own.
AKARESH JOSE
(2015-31-009)
CONTENTS
Chapter No. Title Page No.

1 Design of the study 01 07
2 Food Industry & Marketing Strategy 08 33
3 Market Potential Analysis 34 66
4 Summary of Findings, Suggestions and Conclusion 67 70
Bibliography
Appendix
LIST OF TABLES
Table No. Title Page No.

3.3.1 SOCIO ECONOMIC PROFILE 34
3.4.1.1 CUSTOMERS WHO USE RICE POWDER 36
HOW LONG HAVE YOU BEEN PURCHASING RICE 37
3.4.1.2
POWDER
3.4.1.3 SOURCE OF INFORMATION 37
3.4.1.4 PURPOSE FOR USING RICE POWDER 38
3.4.1.5 COMPANY YOU PREFER THE MOST 38
3.4.1.6 SATISFIED WITH THE PRESENT QUALITY YOU HAVE 39
3.4.1.7 LACK OF QUALITY 39
3.4.1.8 THE QUANTITY OFTEN YOU PURCHASE 39
3.4.1.9 HOW OFTEN YOU BUY THE RICE POWDER 40
3.4.1.10 COMPANY SELL BETTER PRODUCT 40
3.4.1.11 ARE YOU SATISFIED WITH THE PRICE PROVIDED 41
3.4.1.12 FACED AND DIFFICULTY USING RICE POWDER 41
3.4.1.13 PRODUCT AVAILABLE IN YOUR AREA 41
3.4.1.14 HOW FAR TO GET THE RICE POWDER 42
3.4.1.15 HOW THE RICE POWDER IS ACQUIRED 42
3.4.1.16 BRAND PREFERENCE 42
3.4.1.17 FROM WHERE THE RICE POWDER IS BEING 43
PURCHASED
3.4.1.18 HOW YOU KNOW ABOUT RICE POWDER 43
3.4.1.19 HOW LONG YOU TAKE TO PURCHASE THE PRODUCT 43
AGAIN
3.4.1.20 BRAND LOYALTY 44
3.4.1.21 IS THERE ANY IMPROVEMENT REQUIRED 44
3.4.1.22 RATING GIVEN TO THE VARIOUS FEATURES OF RICE 44
POWDER BY ELITE BRAND
3.4.1.23 RATING GIVEN TO FEATURES OF RICE POWDER BY 46
SWAD BRAND
NIRAPARA BRAND
EASTERN BRAND
PAVIZHAM BRAND
3.4.1.27 SOCIO ECONOMIC PROFILE OF RESPONDENTS FROM 53
CUSTOMERS OF RICE POWDER.
3.4.1.28 MAJOR RICE POWDER IN THE SHOP 54
3.4.1.29 HOW LONG YOU ARE USING THE RICE POWDER 55
3.4.1.30 SOURCE OF INFORMATION 55
3.4.1.31 RETAILORS WHO PREFER WHICH BRAND TO SELL 55
3.4.1.32 RETAILORS ARE SATISFIED WITH THE QUALITY 56

PROVIDED
3.4.1.33 RANK GIVEN FOR RICE POWDER BRAND 56
3.4.1.34 RATING GIVEN TO THE VARIOUS FEATURES OF RICE 58

POWDER BY ELITE BRAND
SWAD BRAND
NIRAPARA BRAND
Chapter 1
DESIGN OF THE STUDY
1.1 Introduction
Rice is the seed of the grass species. As a cereal grain, it is the most widely consumed staple
food for a large part of the world's human population, especially in Asia. It is the agricultural
commodity with the third-highest worldwide production.
Rice flour (also rice powder) is a form of flour made from finely milled rice. It is distinct
from rice starch, which is usually produced by steeping rice in lye. Rice flour is a particularly
good substitute for wheat flour, which causes irritation in the digestive systems of those who
are gluten-intolerant. Rice flour is also used as a thickening agent in recipes that are
refrigerated or frozen since it inhibits liquid separation.
Rice is one of the chief grains of India. Moreover, this country has the largest area under rice
cultivation, as it is one of the principal food crops. It is in fact the dominant crop of the
country. India is one of the leading producers of this crop. Rice is the basic food crop and
being a tropical plant, it flourishes comfortably in hot and humid climate.
Rice is mainly grown in rain fed areas that receive heavy annual rainfall. That is why it is
fundamentally a kharif crop in India. It demands temperature of around 25 degrees Celsius
and above and rainfall of more than 100 cm. Rice is also grown through irrigation in those
areas that receives comparatively less rainfall. Rice is the staple food of eastern and southern
parts of India. In 2009-10, total rice production in India amounted to 89.13 million tonnes,
which was much less than production of previous year, 99.18 million tonnes.
As we know that agriculture plays an important role in the market and market analysis is an
important element of marketing, which eventually helps in bringing out all possibilities for a
better business.
1
Jayabharath Rice Mill is a rice processing industry situated at Vadakkenchery, Palakkad
district Kerala which produces various type rice products. The basic idea of this study is to
study the market potential of Rice Powder by Jayabharath Modern Rice Mill in Thrissur
district
India is one of the world's largest producers of white rice and brown rice, accounting for 20%
of all world rice production.
Rice is India's pre-eminent crop, and is the staple food of the people of
the eastern and southern parts of the country. Production increased from 53.6 million tons in
financial year 1980 to 74.6 million tons in year 1990, a 39 percent increase over the decade.
By year 1992, rice production had reached 181.9 kg, second in the world only to China with
its 182 kg. Since 1950 the increase has been more than 350 percent.
India could achieve a record rice production of 100 million tonnes in 2010-11 crop year on
the back of better monsoon this year. The India's rice production reached to a record high of
104.32 million tonnes in 2011-2012 crop year (JuneJuly).
Rice is considered as the master crop of coastal India and in some regions of the eastern India
where during the summer monsoon rainy season both high temperature and heavy rainfall
provide ideal conditions for the cultivation of rice.
Almost all parts of India are suitable for raising rice during the summer season provided that
the water is available. Thus, rice is also raised even in those parts of western Uttar
Pradesh, Punjab and Haryana where low level areas are waterlogged during the summer
monsoon rainy season.
Rice powder is one of the commonly used product of rice. Kerala especially known for taste
of rice products. So the lack of availability creates a huge scope for the business. This
opportunity is identified through various activities
1.2 Statement of the problem

Jayabharath rice mill is having a well flourished production unit for producing different
variety of rice. Also they have an immense potential to expand with product diversification.
Supply and demand for rice is on hike.
2
Market Potential will help the company to take decision in launching the rice powder to the
market. So the market analysis should be designed in such a way that it helps in bringing out
the actual demand for the product.
The present empirical study is to analyze the market potential of Rice Powder in Thrissur
District by Jayabharath Modern Rice Mill.
1.3 Objectives of the study

To know the awareness of Rice Powder among customers available in the market.
To identify the factors influencing the purchasing behavior of the respondent.
To study the market potential of Rice Powder in Thrissur District by Jayabharath

Modern Rice Mill.
1.4 Methodology
1.4.1 The period of the study
The period of the study is during the months of March 21st to May 10th 2016
1.4.2 Sources of data
Thrissur Corporation is the study area used for the study. Out of the entire population of
Thrissur corporation, a sample size 30 Retailers & 60 Households. Retailers are of groceries
and consumers are of household.
1.4.3 Sampling design
For the study a sample of 60 consumers and 30 retailors from Thrissur Corporation was
selected purposively. Out of the entire population of Thrissur Corporation, a sample size of
90 respondents is taken. The sample is taken both from rural and urban areas of Thrissur
Corporation. Primary data will be collected by administrating structured interview schedule
to consumers. Simple Random Sampling (with replacement) is used for the analysis. In
Thrissur corporation there are 55 wards, of which 5 regions are selected at random in such a
way that it includes all four directions (north, south, east, west).
1.4.4 Data analysis
Percentage and indices were used for analysis of the data.
3
1. The respondents frequency of purchasing responses was collected on three-point scale:
weekly, fortnightly, monthly and rarely.
2 The recall of advertisement/commercials was determined by directing the respondents

who had been exposed to the advertisement/commercial of their brands. Based on this
they were given by with aid and without aid questions.
3 Rank order scale
For determining the extent to which purchasing decisions have influenced the factors of
purchase, the data were collected on five - point scale; Strongly agree, Agree, Not sure,
Disagree, Strongly disagree. The respondents were asked to rank each factor based on
their influence. After that marks were assigned to each rank as follows. For the first rank
a mark of 1 was given and for the twelfth rank, mark assigned was 12 and other marks
were between this range (i.e. for rank 1 to 12, marks of 1 to 12 were given respectively).
So the most influencing factor of consumers choice and product choice given rank 1.
Similarly, the less influencing factor of consumers choice and product choice given the
highest rank respectively. The frequencies of each factor obtained were summed up to
arrive at the rank of each factor.
4 The suitability of various promotional activities were analysed on five-point scale:

excellent, good, average, poor, very poor.
Variables under study

1. Brand awareness
2. Factors affecting the purchasing decision
Advertisement
Packaging
Display
Ingredients
Brand image
Retailer's advice
Availability
Friends and Relatives suggestions
4
1.6 Limitations of the study
Sample size for the study has been fixed as sixty, therefore the inferences made in the study is
based on the opinion made by the respondent during the survey period. It may not be
generalised till the same is validated by conducting a study with larger sample.Also the study
is limited to Thrissur district due to time constraints. Study cannot be generalized.
1.7 Reviewof literature
Promotion may be defined by Philip Kotler as the co-ordination of all seller initiated efforts
to set up channels of information and persuasion to facilitate the scale of a good or service.
From very early times, India was famous for the cultivation of rice, especially Kerala.
Starting in 2500BC, rice has been a source of food for people. Rice production originated in
china, and was spread to countries such as Srilanka and India. It is believed that rice was
bought to West Africa and Greece in 300BC, by Alexander the Greats armies in 800 AD.
People in East Africa traded with people from India and Indonesia and were introduced to
rice.
Paddy cultivation in Kerala has witnessed a steady decline since the 1980s. The sharp fall in
the area under paddy cultivation as well as in the quantity of rice produced in the State has
had important implications for Kerala's economic, ecological and social development. Over
the last five years, however, there have been commendable signs of a revival in rice
production in Kerala.
A new sense of purpose and enthusiasm is visible now among paddy cultivators in Palakkad,
a region that is referred to as the "rice bowl" of Kerala. This field report, which is based
partly on interviews with farmers, government officials and leaders of mass organizations in
Palakkad, is an account of some of the long-term challenges facing paddy cultivation in
Kerala. It also attempts to review the policy initiatives of the State and local Governments
over the last few years that have helped revive rice cultivation in Kerala.
1.7.1 References
5
David. L. K. and Louis E. B. (2006). Principles of Marketing. Thomson South - Western,
New York.
Kotler, Philip and Keller, Kevin L. (2007). A Framework for Marketing Management. Upper
Saddle River, N.J: Prentice Hall, London.
Bovee, C. and Thill, J.V. 1992. Marketing, United State of America.McGraw Hill, in
Consumer Research, Vol. 16, 33p.
Cole, G. 1996. Management Theory and Practice [5th Ed.]. Great Britain: Martins the
Printers, p.87.
Ferrell, O.C. and Hartline, Michael D. 2008.Marketing Management Strategies [5th Ed.].
South-Western, Cengage Learning. 113p.
Jobber, D. and Fahy, J. 2007. Foundation of Marketing [2nd Ed.]. McGraw-Hill Education,
pp.195-200.
Koekemoer, L. 2004. Marketing Communications.Juta and Company Limited, London. p.57.
Kotler, P. 1984. Marketing Management: Analysis, planning and Control [5th Ed.]. Prentice-
Hall, Englewood Cliffs, New Jersey, p. 44.
Kotler, P. and Keller, L.K. 2008.Marketing Management [13th Ed.]. New Jersey: Pearson
Prentice Hall, p. 47.
Kotler, Philip and Gary Armstrong. 2006. Principles of Marketing [11th Ed.]. New Jersey:
Pearson Prentice Hall, p. 47.
Kotler, Philip. 1988. Marketing Management - Analysis, Planning, Implementation and

Control [6th Ed.)]. Englewood Cliffs NJ: Prentice Hall, p. 55.
Kotler, Philip. 2005. Marketing Management [12th Ed.]. Prentice-Hall of India, pp.564-570.
Kotler, Phillip. 1997. Marketing Management Analysis, Planning, Implementing and

Colonial [8th Ed.]. Eaglewood Cliffs Prentice Hall, p.198.
Kotler. 2013. Marketing Management Analysis, Planning, Implementation, and Control.

Prentice Hall, New Jersey, p.79.
6
[Anonymous]. 2012. Promotional marketing [On-line]. Available: http://www.marketing-
schools.org/types-of-marketing/promotional-marketing.html [28 March 2016].
[Anonymous]. 2015. SBDC [Small Business Development Corporation]. Marketing

promotion strategies [On-line]. Available: https://www.smallbusiness.wa.gov.au/business-in-
wa/corporate-publications/business-guides/marketing-promotion-strategy [28 March 2016].
http://www.jayabharathricemill.in/
https://www.analytic-news.com/press/2007/24.html
https://www.nies.go.jp/labo/crm-e/crm_10-d.pdf
http://hpst.cz/sites/default/files/attachments/5991-3777en-food-rice-analyses.pdf
www.jayabharathricemill.in
1.8 Contents of the study
The chapter wise distribution of the project will be as the following:
1. Chapter 1 - Design of the study

2. Chapter 2 - Industry & Organization Profile
3. Chapter 3 Market Potential of Rice Powder - Analysis
4. Chapter 4 Summary of Findings, Suggestions and Conclusion
5. Bibliography
6. Appendix
7
Chapter 2
Industry & Organization Profile
Industryprofile
2.1 Introduction
The food processing industry in India is a sunrise sector that has gained prominence in
her eyes and ears full stop availability of raw materials, changing lifestyle and relaxation
in policies has given a considerable pushed to the industries growth this sector is among
the few that serves as a link between the agricultural and industrial sectors of the
economy struck strengthening the ceiling is of crucial importance to improve the value of
Agricultural produce ensure prices to farmers at the same time create favourable demand
for Indian Agricultural Products in the world market food processing sector implies
significant development of the agriculture sector and insurance value addition to it
India is the world's second largest producer of food next to China and has the potential of
being the biggest with the food and agricultural sector the total food production in India is
likely to double in the next 10 years fruits and vegetables fisheries milk and Milk
products meat and poultry packaging convenience food alcoholic beverages and soft
drinks and grains are important sub sectors of the food processing industry. Health food
and health food supplements for another rapidly rising segment of this industry which is
gaining was the popularity amongst the health conscious the Indian food processing
market is one of the largest in terms of production, construction, and export and import
prospects in there is one of the major food producers worldwide, with new reforms, it
presents exciting opportunities for commercial opening for a wide range of investors
across the globe currently process the food accounts for nearly 2 percentage of total food
production in India. Which is very low as compared to the western countries? Taking
market forces such as a rising income level and changing consumer behaviour due to
Rapid economic growth into consideration, it is expected to reach a growth rate of 10
percentages in 2010 and 25 percentage in 2020. In food processing sector, dairy products
include milk techniques with extra and banquet food provides immense opportunities for
investment.
8
It is estimated that there are an estimated 40000 units in the food processing sector in
India. India food processing sector covers Fruit and Vegetables, meat and poultry, milk
and milk bread, alcoholic beverages, fisheries, plantation, gain processing and other
consumer product group like confectionery chocolates and cocoa products Soya based
product, mineral water, high protein food etc. It covers an exhaustive database of an array
of suppliers, manufacturers, exporters and importers widely dealing in sectors like the
food industry, diary processing, Indian beverage industry etc. We also covers at the
library plants Canning bottling plant, packings Industries, process machinery etc.
Buy RNC OS, Indian food and beverages forecast 2007 IIFA 2011 comma also
highlighted Indian Government support to promote its food processing sector as per the
report there are about 300 million upper and middle class consumers of processed and
packaged food in the country and another 200 million are likely to be added by 2010 in
this scenario, the food processing industry has been a card priority status by the new
government ministry of food processing industries is planning to established
constituency. This will give a boost to the growth and development food processing
industries. The research reports also addresses some other industry issues and fats that are
critical for the success in India's food and beverage industry like the para had
consumption in various food product segments, the market size and scope of the
organised the food retailing in India, the growth prospects of the process the food industry
as well of opportunities and challenges in this industry. India green revolution is an
awesome success story I'm rude farming techniques and the use of irrigation and high
heels brain how greatly increased agricultural production from being an imported food
after independence India has now become an exporter of food that total grain production
has increased from 50.8 to million tonnes in 1951 to 176 food grain has increased from
1552 kg per hectare in 1997 hyphen 98 217403 kg per hectare in 2004 2005. India has
made a fairly good progress on the horticultural map of the world with the total annual
production of the Horticulture crops touching over 149 million tons. India has been
bestowed with wide range of climate and PCO geographical conditions and a search is
most suitable for growing various kinds of horticultural Crop crops such as fruits,
vegetables, flowers, nuts, spices and plantation crops like coconut cashew Coco.
9
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than groceries/pulses)
people buy at regular intervals. The most common in the list are toilet soaps, detergents,
shampoos, toothpaste, shaving products, shoe polish, packaged foods tuff, and household
accessories and extends to certain electronic goods. These items are meant for daily of
frequent consumption and have a high return. The Fast Moving Consumer Goods Industry
includes food and non - food everyday consumer products. They are usually purchased as an
outcome of small- scale consumer decision so they are heavily supported (advertising,
promotion) by the manufacturers. Typical purchasing of these goods occurs at grocery stores,
supermarkets, hypermarkets etc. The manufacturers are always exploring new outlets and
sales locations while the traditional retailers have introduced private label brands to capture
additional profit. Every one of us uses fast moving consumer products every day. This
business is based on building powerful brands and achieving a high level of distribution.
Global power brands are the choice of multinational companies. Local brands can
complement these. Achieving superior distribution thorough a powerful supply chain and
making sure the products are available wherever someone might want or need it. The FMCG
Supply Chain is the interrelated collection of processes and associated resources It includes
suppliers, manufacturers, logistics service providers, warehouses, distributors, wholesalers
and all other entities that lead up to delivery to the final customer. Followed in the market
through sales force activity it can help gain a high level of distribution. Market Research,
consumer research, segmentation and product positioning is the compulsory homework of
any company in this industry. Advertising and promotions, POS activities drive brand
awareness, trial, and purchase and is a core activity. While TV advertising is most common
new solutions are also used including internet advertisements. High budgets, creativity and
detailed planning are needed.
India is a very big country in Asia continent. Indians are from different cultures,
religions castes, creed and regions. Dozens of languages are spoken in India. In past, Indian
economy was a slowly developing but in last decade the development rate has been
increased. It is the third most attractive economy for investment. Due to liberalization, many
MNCs have entered in India for business. Now, business in agriculture and allied activities,
manufacturing and service sector is growing fast. FMCG Sector is very important of Indian
Industries. The demands of FMCG products are very high. There are a large number of
10
customers because Indian population in nearly 120 crores scattered over a vast territory.
There is a great potential for FMCG in the Indian market. Sincere efforts are needed to attract
a large number of prospects. The market situation is very competitive. For growth, excellence
and to increase demands in business the need for promotional activities has been felt.
Promotional activities contribute to thegrowth of the business. If advertising with strategic
media planning is done the effect will be higher.
2.2 Fast Moving Consumer Goods (FMCG)
Fast Moving consumer goods are those goods that are consumed every day by the
average consumer and are replaced or fully used up over a short period of days, weeks, or
months, and within one year. The Fast Moving Consumer Goods (FMCG), also known as
Consumer Packaged Goods (CPG), is products that have a quick turnover and relatively low
cost. Though the absolute profit made on FMCG products is relatively small, they generally
sell in large numbers and so the cumulative profit on such products can be large. Fast moving
consumer goods have a short shelf life, either as a result of high consumer demand or
because the product deteriorates rapidly. Some Fast moving consumer goods such as
meat, fruits and vegetables, dairy products and baked goods are highly perishable. Other
goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have
high turnover rates. Fast moving consumer goods are products that have a quick shelf
turnover, at relatively low cost and don't require a lot of thought, time and financial
investment to purchase. The margin of profit on every individual Fast moving consumer
goods product is less. However, the huge number of goods sold is what makes the difference.
Hence profit in Fast moving consumer goods always translates to a number of goods sold.
Fast Moving Consumer Goods is a classification that refers to a wide range of frequently
purchased consumer products. Examples of FMCG generally include a wide range of
frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning
products, shaving products and detergents, as well as other nondurables such as glassware,
bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals,
consumer electronics, packaged food products and drinks, although these are often
categorized separately. Three of the largest and best known examples of Fast Moving
Consumer Goods companies are Nestl, Unilever and Procter & Gamble. Examples of
FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands are
Coca- Cola, Kleenex, Pepsi and Believe Toiletries, Beauty Products, Home Cosmetics,
Packaged Food, Soft Drinks Household accessories are some of the best known examples of
11
Fast Moving Consumer Goods A subset of FMCGs are Fast Moving Consumer Electronics
which contain innovative electronic products such as mobile phones, MP3 players, digital
cameras, GPS Systems, cell phones and Laptops which are replaced more frequently than
other electronic products mainly due to technology changes. White goods in FMCG refer to
large household electronic items such as refrigerators. Smaller items, TV sets, stereo systems
etc. are sometimes termed Brown goods. Unlike other economy sectors, FMCG share float in
a steady manner irrespective of global market dip, because they generally satisfy rather
fundamental - as opposed to luxurious - needs.
2.2.1 Growth of FMCG in India
The Indian FMCG sector with a market size of Rs. 000 crore is the fourth largest sector
in the economy. The FMCG market is set to double from Rs. 10000 crore in 2014- 15 to
rupee 30000 in 2016. FMCG sector will witness more than 60 per cent growth in rural and
semi - urban India by 2016. Indian consumer goods market is expected to reach Rs. 3500
crore by 2014. Hair care, household care, male grooming, female hygiene, and the chocolates
and confectionery categories are estimated to be the fastest growing segments. At present,
urban India accounts for 66% of total FMCG consumption, with rural India accounting for
the remaining 34%. However, rural India accounts for more than 40% consumption in major
FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home
and personal care category, including skin care, household care and feminine hygiene, will
keep growing at relatively attractive rates. Within the foods segment, it is estimated that
processed foods, bakery, and dairy are long- term growth categories in both rural and urban
areas. The growing incline of rural and semi - urban folks for FMCG products will be mainly
responsible for the growth in this sector, as manufacturers will have to deepen their
concentration for higher sales volumes. Major Players in this sector include Hindustan
Unilever Ltd., ITC (Indian Tobacco Company), and Nestl India, GCMMF (AMUL), Dabur
India, Asian Paints (India), Cadbury India, Britannia Industries, Procter & Gamble Hygiene
and Health Care, Marico Industries, Nirma, Coca- Cola, Pepsi and others. As per the analysis
by ASSOCHAM, Companies Hindustan Unilever Ltd, Dabur India originates half of their
sales from rural India. While Colgate Palmolive India and Marico constitutes nearly 37%
respectively, however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from
rural India. A rapid urbanization, increase in demands, presence of a large number of young
populations, a large number of opportunities is available in the FMCG sector. The Finance
Minister has proposed to introduce an integrated Goods and Service Tax by April 2014.This
12
is an exceptionally good move because the growth of consumption, production, and
employment is directly proportionate to the reduction in indirect taxes which constitute no
less than 35% of the total cost of consumer products the highest in Asia. The bottom line is
that Indian market is changing rapidly and is showing unprecedented consumer business
opportunity. It is in this perspective we have decided to conduct a study of consumer
Behaviour and Buying Decisions in respect of select FMCG products.
2.2.2 Characteristics of FMCG in India
Branding: Creating strong brands is important for FMCG companies and they devote
considerable money and effort in developing bands. With differentiation on functional
attributes being difficult to achieve in this competitive market, branding results
in consumer loyalty and sales growth.
Distribution Network: Given the fragmented nature of the Indian retailing industry
and the problems of infrastructure, FMCG companies need to develop extensive
distribution networks to achieve a high level of penetration in both the urban and rural
markets. Once they are able to create a strong distribution network, it gives them
significant advantages over their competitors.
Contract Manufacturing: As FMCG companies concentrate on brand building,
product development and creating distribution networks, they are at the same time
outsourcing their production requirements to third party manufacturers. Moreover,
with several items reserved for the small scale industry and with these SSI units
enjoying tax incentives, the contract manufacturing route has grown in importance
and popularity.
Large Unorganized Sector: The unorganised sector has a presence e in most product
categories of the FMCG sector. Small companies from this sector have used their
location advantages and regional presence to reach out to remote areas where large
consumer products have an only limited presence. Their low cost structure also gives
them an advantage.
2.2.3 Scope of the sector
The Indian FMCG sector with a market size of Rs. 800 billion is the fourth largest
sector in the economy. A well-established distribution network, intense competition between
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the organized and unorganized segments characterizes the sector. FMCG Sector is expected
to grow by over 60% by 2016. That will translate into an annual growth of 10% over a 5-year
period. It has been estimated that FMCG sector will rise from around Rs. 10000 crores in
20015 to Rs. 30000 crores in 2016. Hair care, household care, male grooming, female
hygiene, and the chocolates and confectionery categories are estimated to be the fastest
growing segments. Though the sector witnessed a slower growth in 2012-2014, it has been
able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has
shown a healthy growth in the last quarter. An estimated double digit growth over the next
few years shows that the good times are likely to continue.
2.2.4 Indian food industry
The Indian food industry is poised for huge growth, increasing its contribution to world
food trade every year. In India, the food sector has emerged as a high-growth and high-profit
sector due to its immense potential for value addition, particularly within the food processing
industry. The food industry, which is currently valued at Rs. 2500 billion, is expected to grow
at a Compounded Annual Growth Rate (CAGR) of 11 per cent to Rs. 4300 billion by 2018.
Food and grocery account for around 31 per cent of Indias consumption basket. Accounting
for about 32 per cent of the countrys total food market, The Government of India has been
instrumental in the growth and development of the food processing industry. The government
through the Ministry of Food Processing Industries (MoFPI) is making all efforts to
encourage investments in the business. It has approved proposals for joint ventures (JV),
foreign collaborations; industrial licenses and 100 per cent export oriented units. The Indian
food and grocery market is the worlds sixth largest, with retail contributing 70 per cent of
the sales. Food has also been one of the largest segments in India's retail sector, which was
valued at Rs. 32500 billion in 2013. The Indian food retail market is expected to reach Rs. 61
lakh crore by 2020. The Indian food processing industry accounts for 32 per cent of the
countrys total food market, one of the largest industries in India and is ranked fifth in terms
of production, consumption, export and expected growth. It contributes around 14 per cent of
manufacturing Gross Domestic Product (GDP), 13 per cent of Indias exports and six per cent
of total industrial investment. Indian food service industry is expected to reach Rs. 5200
billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is
growing at a Compound Annual Growth Rate (CAGR) of 20 per cent.
The online food ordering business in India is in its nascent stage, but witnessing
exponential growth. The organized food business in India is worth US$ 48 billion, of which
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food delivery is valued at Rs. 1000 billion. With online food delivery players like FoodPanda,
Zomato, TinyOwl and Swiggy building scale through partnerships, the organised food
business has a huge potential and a promising future.
The Indian Agricultural and Food industry are on the brink of a revolution that will
modernize the entire food chain as the total food production in India is likely to double in the
next 10 years. Food processing is a large sector that covers activities such as agriculture,
horticulture, plantation, animal husbandry and fisheries. The food processing sector is critical
to Indias development, for it establishes a linkage between Industry and Agriculture. It has
also emerged as one of the major drivers of economic growth.
Presently, most of the people would like to consume healthier and tasty food in ready
to eat form, in order to reduce the cost of time and work. Increased urbanization, improved
standard of living and the convenience needs of dual income families spot to major market
potentialities in the food processing sector. This is also evident from the presence of several
global food giants and leading Indian industrial enterprises in the countries food processing
sector such as: Nestle India Ltd, Cadburys India Ltd, Kellogg India, Hindustan Lever Ltd,
ITC-Agro, Godrej foods and MTR foods Ltd.
Besides in the current globalized era, our surplus food production as well as increasing
preference for Indian food in several regions of the world needs to be leveraged to achieve
economic and strategic objectives through exports.
2.2.5 Kerala food industry
Kerala is bestowed with the best of what nature has to offer. The state of Kerala in the
Indian union is characterized by a number of significant socio economic, industrial and
political peculiarities. In spite of these favourable features, there exists high scope for further
advancement in respect of industrial development in general and rural development in
particular, given the current economic problems vise, high incidence of poverty, high rate of
unemployment, fiscal crisis of the state government, informal nature of agriculture and
industrial operations and acute infrastructural shortages.
Among the leading commercial and industrial centers of India Kerala offers a
conducive environment for setting up any industry. Prominent sectors in Kerala are
information technology, tourism, agro based business including food processing, readymade
garments, Ayurvedic medicines, mining, marine products, light engineering etc. The key
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sectors in Kerala according to their contribution to the state GDP are rubber, coir, tourism,
food processing and chemicals and fertilisers.
There are around 1560 food processing units in Kerala alone. These processed units
operate mainly in the small scale sector. Kerala is rich in coconut, spices, fruits, vegetables,
sea food and processed foods. The spices, pickles and the marine products are the major food
product export from Kerala. The state could emerge as plantation based food products
exporter through value addition. Its share in the countrys total food products export is almost
20 per cent despite the limited size of the landmass. Two thirds of Keralas export income
comes from processed food. The food processing sector in the state commands nearly Rs.
8500 crores in exports and has a potential to become Rs 30, 000 crores worth industry.
Food processing industry (FPI) is significant to the Kerala economy on account of its
contribution to the food requirements. Assessment of the FPI in the perspective of Kerala
economy has employment orientation too. Kerala with its industrial paucity offers very little
for huge industrial establishments. FPI which is highly labour intensive is suitable to be
organised in the small-scale sector. FPI which is termed as the sunrise sector is expected to
attract phenomenal investment-capital, human, technological and financial. For a successful
food processing sector various aspects such as quality control, quality systems and quality
assurance, the constituents of total quality management should function in a horizontal
fashion. On the basis of the above mentioned facts we can summaries that, food processing
sector has the potential to make the growth sustainable and more inclusive. The importance
of the sector is further enhanced by the fact that over 70 per cent of the population depends
on agricultural activities for livelihood.
The government has, therefore, been focusing on commercialisation and value addition
to agricultural produce; minimize pre/post-harvest wastage, generating employment export
growth in this sector through a number of regulatory and fiscal incentives. With changing
foods consumption pattern, processed food which is convenient, hygienic and of consistent
quality are set to grow in value.
2.3 Market Potential
Market Demand
Demand reflects the willingness of a consumer to purchase a good or service. Market demand
reflects the willingness of all consumers within a given market to purchase a good or service.
16
Companies spend millions of dollars on software and experts to help them predict or forecast
market demand. Companies forecast market demand because it fluctuates and has an unstable
nature. If every company knew exactly how many people would buy a given product or
service, the need to forecast market demand would evaporate.
Market Potential
One company selling widgets in a certain market has a certain percentage of that markets
total sales volume. The maximum number of widgets sold by every company that sells
widgets in that same market comprises the market potential for widgets in that market.
Market potential refers to the maximum sales volume of any given product or service in a
given market before the product or service reaches market saturation.
Sales Forecasting
Sales forecasting refers to the process by which a company attempts to predict future market
demand of a product or service. Companies typically use historical sales data to predict future
market demand. Problems can occur with blindly using historical sales data as a forecast
input because at times it does not parallel actual market demand.
Market potential describes the maximum capacity of a defined market for a specific product /
a service within a defined time period. In this context market refers to the total of all potential
consumers with a certain need or desire who are willing or able to satisfy this need or this
desire through the purchase of products / services. The sales potential can then be derived
from the results of the market potential analysis. Market potential consists of the upper limit
of total demand which would theoretically be converged on at (infinite) rise of marketing
expenditures of all relevant providers (see figure). Applications Market potential analyses are
especially used for growth or unsaturated markets for which market size cannot simply be
estimated through the actual market volume. Market potential analysis offers decision support
for specific questions for which such as: Exploration of potential (target) markets
Determination of company locations Evaluation of ideas (screening) Designation of sales
areas Market Potential Analysis Procedure at approximate Specification of model
assumptions Development of assumptions regarding the cause-effect relationships between
factors used Data collection Analyses of secondary information or specially conducted survey
Specification of the number of consumers Often from secondary statistical sources
Estimation of purchasing rates Determination of average consumer spending through random
17
sample analysis Calculation of market potential Multiplication of specified number of
potential consumers with determined average purchasing rate.
Defining Market Potential Analysis
Market potential analysis is a strategic tool to identify market opportunities and invest
resources where they will have the greatest return in the long run. Market potential analysis is
not used for short-term forecasting, but can help to target markets with high growth potential
in the future. Market potential analysis enables companies to:
Categorize countries as lead markets, break-out markets or emerging markets.
Quantify market potential for a given product by country, region or globally, now and in the
future.
Identify growth drivers and barriers in those markets.
Understand how to exploit growth markets by tailoring marketing, product development and
production strategies to meet customer demands and overcome market barriers.
MARKET POTENTIAL INFLUENCERS
Many forces influence market potential, but there are two broad sets of factors that are key:
demand drivers and inhibitors.
Demand Drivers
Utility of Supporting
Size and Wealth Infrastructure
product
Demand Inhibitors
Market potential
Demand Drivers
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Demand drivers are the factors that affect the size, readiness or exploitability of markets.
Three are especially important.
The first is the size and wealth of a market. This determines the number of households,
companies, government agencies and other organizations that can actually afford to buy a
product. This is not a simple calculation, and average figures such as total population and
GDP per capita offer only a starting point. Other factors include household income
distribution and the structure of the business sector. Much of the value of market potential
analysis comes in calculating accurately the number of potential customers there are for a
given product.
The second is the utility of a product in a particular market. This varies according to the
nature of the product and the characteristics of the market. For instance, if you are selling an
English-only online service, the number of people who speak English in a given market will
determine the value of the service. Similarly, if you are selling PCs for small businesses, the
value of the systems will depend on how easily they can be networked and communicate
internally.
The third demand driver is the supporting infrastructure for a product. Frozen foods require
refrigerators, and refrigerators require electricity, so the demand for frozen foods is
dependent on the presence of reliable, affordable electrical power. For information and
communication products, the necessary infrastructure can include telephone lines, satellite
uplinks, and human resources such as skilled programmers, technicians and users. The
quality of infrastructure generally corresponds to national wealth, but 6 there are significant
differences among countries at similar levels of wealth.
Demand Inhibitors
Market potential in a given country can appear to be high, but actual demand remains low.
This is usually due to the presence of demand inhibitors that either raise the cost or lower the
utility of a product. An obvious example is a tax or tariff, which increases the price to final
customers. Quotas and other trade barriers have the same effect. Some inhibitors such as
tariffs are explicit and can be quantified, while others are less visible and can only be
identified through in-depth knowledge of a country. For example, the business model of
companies, management culture, and labor environment (e.g., lifetime employment, strong
unions) can inhibit demand.
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Estimating Market Potential
Estimating the market potential for a business is critical in evaluating its viability and
provides an estimate of the maximum total sales potential for a given market. Once the
estimated market potential has been calculated, it is possible to determine if the market is
large enough to sustain your proposed business or sustain an addition competitor in the
marketplace. It is important to remember that the estimated market potential sets an upper
boundary on the market size and can be expressed in either units and/or sales. Unless there
are no direct or indirect competitors, a business will capture a share of the total estimated
market potential not all of it. The following provide the steps and data necessary to estimate
the market potential. These will be discussed in detail later.
Key Steps in Estimating Market Potential:
1. Define your target market and market segments.
2. Define the geographic boundaries of your market.
3. Derive an average selling price.
4. Determine the average annual consumption.
Estimating the market potential for a business requires specific information on the number of
people or potential buyers, an average selling price, and an estimate of consumption or usage
for a specific period of time. Once this information has been collected, it can be plugged into
the following formula to derive the estimated market potential.
Retail market potential
If you are evaluating a retail establishment, a more refined method of calculating the retail
trade area market potential is available. The market potential for a retail establishment
provided an estimate of the maximum total sales potential for a specific retail operation in a
given market. As with the general market potential estimate, the market potential sets an
upper boundary on the market size and can be expressed in either units and/or sales. The
following are the steps and information that are needed to estimate the retail trade area
market potential.
Key Steps in Estimating Market Potential:
20
1. Define your target market and market segments.
2. Define the geographic boundaries of your market.
3. Derive average expenditures for the category.
4. Determine the average household income for the area and state.
5. Estimate market share.
As with estimating the market potential for any business, estimating the retail trade area
market potential requires specific information on the number of people or potential buyers, an
average expenditure figure for the retail category, area and state income figures, and an
estimate of market share. Once this information has been collected, it can be plugged into the
following formula to derive the estimated retail trade area market potential.
Target Market
One of the most important components of estimating the market potential for a business is to
determine its target market. A target market can be thought of as the customers who are most
likely to buy from you and generally are described using demographic variables (gender, age,
education) as well as psychographic variables (lifestyle and belief system variables). In many
cases, a business may have more than one target market. Think about the automobile
industry, automobile manufactures have a number of target markets, i.e., truck buyers, luxury
car buyers, economy buyers. Your business should be able to develop specific profiles for
each of your target markets using demographic and psychographic variables.
The first method of describing your target market segments is using a set of demographic
descriptors like the following:
Age
Marital Status
HH Income
Gender
Race/Ethnicity
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Family Life cycle
Education
Religious Affiliation
It is important to create a profile of your target market describing them with demographic
variables like those listed above. Once you have created your demographic profile, you can
determine how many people fit your profile using various demographic data sources (see
Appendix A). It is important to note that creating a demographic profile does may not provide
specific enough information to accurately determine your market potential as it may be too
general.
Sources of Demographic Information:
The second profile is referred to as psychographic lifestyle and describes your target market
segment by their activities (work and leisure), interests (family, animals, environment, home,
and community), and opinions. The lifestyle profile is more important in predicting future
patronage than the demographic profile because it will determine what type of experience
they are seeking. Failure to meet these needs will result in loss of business. The following are
a few psychological descriptors:
Political affiliation
Socially conscious
Cutting-edge
Family-oriented
Conformist
Power-wielding
Trend follower
Thrill seeker
Green
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Fun-loving
Fashion-forward
Sports enthusiast
Psychographic information is more difficult to obtain than demographic information. As a

result, it is less frequently used when determining a target market profile.
Market or Trade Area
The market area can be thought of as the geographic area where the business intends to
operate, i.e., a city block, between the rivers or the globe. Defining the market area is
important because it defines the geographic area where potential consumers live and/or work.
However, not everyone in the defined market area will be a customer. As a result, it is
important to compare your target market profile, generally described using demographics, to
the population in the market area. There are a number of ways to define a market area, some
are easy and others are more difficult and require the services of a marketing professional.
Methods of Defining Market:
A market area is generally defined by geography, radius, trade area or drive-time. A.

Geography is the simplest form of defining a market area. This method defines the market
area by using landmarks or logistical barriers to define the market area. The following are
easy-to-use geographical areas:
Neighborhoods
Zip codes
City or County Boundaries
Metropolitan Statistical Areas
State (multi state) Boarders
Nation
Continent
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World
Market Size
Once the market area and target market has been defined, it is possible to determine the
number of potential customers for your business. This will allow you to estimate the N
(number of potential customers) in the market potential equation. This total market potential
will typically have to be adjusted downward to account for non-users. This information is
readily available and found in Appendix D in the Sources of Consumption Information
Section.
Consumption or Usage
You need to determine how often your target market segment uses your product or service.
This figure will have a significant impact on the estimated market potential. For instance, is
the product purchased frequently, occasionally, or infrequently? Obviously the more
frequently the product is purchased, the larger the market potential. Durable goods, products
that can be used over a long period of time, are purchased less frequently than perishable
items. As a result, the annual consumption of apples is greater than the annual consumption
of television sets. There is an abundance of consumption information from the government as
well as industry trade associations. For example, the USDA collects volumes of
disappearance data for commodities that is converted into per capita annual usage estimates.
Competitor Analysis
One of the best sources of information is to investigate competing businesses. These

businesses can provide a wealth of information that can be used in evaluating the potential for
your business. By evaluating how a company markets its business, it is possible to determine
the markets it is targeting. For example, if competing businesses are advertising in Southern
Living, they are targeting affluent, middle age females. However, if they are advertising in
the sports section of a metropolitan newspaper, they are most likely targeting males. In
addition to collecting information on the markets they are targeting, a competitor analysis can
reveal packaging preferences, target market information, pricing strategies, distribution
channels and marketing strategies. Simply evaluate the products and services your competitor
is providing. Are they producing family packs or individual serving sizes of their processed
food product? How are they getting their products to their customers? Are their products
24
value prices or are they priced for the high-end market? Are they focused on convenience,
quality or quantity? What type of packaging material are they using?
Pricing
A products pricing has a direct impact on the bottom line of your business and its success.
You do not want to price yourself out of the market but you do not want to leave money on
the table. However, it is important that you account for all of your costs associated with
providing your product to the consumers and set your price high enough to cover this price
and make a profit. Your products price must also be in line with competing products relative
to its value. Value is a ratio of a customers expected level of quality and the price they pay
for the product. If quality is low and price is high, it is a low value product. Therefore,
investigate what others are charging and what the customer gets at that price when setting
your price.
Market Outlook
The situational analysis can be thought of as a comprehensive investigation into the business
environment in which your company will be operating. This analysis will allow you to
determine the health of the industry, is it expanding, declining or stagnate. This should
include an industry overview focused on industry trends and should provide a general review
of the industry as well as research into regulatory and social implications that would directly
or indirectly impact the demand or perception of your business.
One important aspect is to determine if the market is saturated or if there is room for new
businesses. Using the Market Development Index (MDI) it is possible to determine a
products lifecycle. The formula for estimating this is as follows:
MDI = (Current market demand Maximum Market Potential) * 100
MDI < 33 (Considerable growth potential. High growth market, high prices and basic
benefits.
MDI 33-67 Growth potential but need to offer more than basic product and compete at
lower price.
25
MDI > 67 Mature market, still room for growth but becoming commodity products. Need to
have very differentiated products to meet specific customer needs.
Market Share
The percentage of a market (either in units or revenue) accounted for by an individual

business. This figure is important since it provides insight into how much of the total market
potential a business might capture. If the market share is not large enough to support the
business, then there is a problem. Also, if the number of units needed for the business to
break-even financially is known, it is possible to determine what share of the market will
have to be captured for the business to achieve this break-even point. If the market share
estimation is too high or unrealistic, the business should be re-evaluated.
Estimating market share is difficult because of the lack of information. Some trade
associations or market research publications will provide some basic market share
information but finding directly applicable information for your business may be impossible.
Market share information is very difficult to obtain and may need to be estimated using
various scenarios.
2.4Jayabharath Modern Rice Mill A Profile
2.4.1 Introduction
Jayabharath having rich and vast experience in this field. The firm is situated in
Vadakkenchery in Palakkad district in the factory situated near proper proprietors house.
This helps to manage the mill as full timer. The rice mill become a partnership form on 26th
March 2007 and there are three partners.
The rice mill is situated at Vadakkenchery on Palakkad-Thrissur National Highway. Is the
one of the leading rice mill in Palakkad district. It was formed as a sole proprietorship and
was promoted by Shri V M Siddique.He has been successful businessman. The producer
prices sold in their brand name JBRM brand. The rice is supplied to various districts in
Kerala in Ernakulam. Thrissur, Thiruvananthapuram, Idukki etc... The rice mill also
undertakes export of rice through exporting agents to Middle East countries. The unit is
registered as a SSI unit at district Industries Centre Palakkad. The unit get licence like a v a t,
KSDL, CST and pollution control.
26
The unit is working only on shift a day and the total number of working days in a year is
projected at 240 only considering the seasonal nature of business. Depreciation has been
calculated on written down value method as per the right had given below.
Building 5%
Plant and machinery 15%
Others 15%
The company has three major expansions: -
1. First improvement in 1986 hulling section improved by Balaji Industries Coimbatore.

2. In 1986, 2nd improvement to place boiler had been installed. The company can undertake
production in any climate conditions. The bowler and dryer are supplied by photon,
Thanjavur.
3. The third expansion in 2002 Nestler Mumbai changes the boiler.
Technical Analysis
Land
The unit exists in 227 cents of land in Vadakkenchery, Palakkad district. The site is near to
the national highway and located in an ideal place for raw material and also transport for
finished goods.
Buildings
The building construction is AC type.
Raw materials
The only raw material that is required is party. This is almost all the block like a Alathur
Chittoor Pattambi Malampuzha, Sreekrishnapuram extra the policy of the government to
allow tree paddy moment enables the management to heir raw material from neighbouring
States also this being the situation, no problems what so ever is invalid for raw material
requirements. Ever is envisaged for raw material requirements.
Utilities
The Unit requires LLSKW connected load. The promoter already has 250 KAT transformer
connected load become HT consumer from November 2007.
27
Water required for the process is available in plenty at the state itself apart of junks obtained
by the unit itself is unusable festival for the boiler. Cochin in Kerala and Coimbatore in Tamil
Nadu make sure that the transport facility is adequate at reasonable charges.
Labor
Manpower requirement for the unit is very low. There are only 5 Office staffs and 1
supervisory staff apart from 10 to 15 unskilled labors. It involves 26 workers, at the office.
There is a manager, computer operator, accountant and a cashier. At the production section
there is a qualified and licensed the person in operating the boiled (boiler operator), and 1
trainee. 12 loading and unloading workers,4 Lady workers 2 sales representatives.
Government Interactions
In order to encourage the development of industries the Kerala government considers rice
Mills as thrust industries. Central industrial unit shall apply for investment subsidy within a 4
month of commencement of commercial production completion of disinvestment or
expansion of unit
An investment subsidy of 15 % limited to 15 Lakhs be payable on a fixed capital investment

of all industrial units in Kerala commencing all production on or after 2/9/1991. All
production control equipments installed on or after 23/09/1991 and certified by the chartered
accountant with regard to necessity shall be eligible for 15 % subsidy to a separate ceiling of
25 lakhs.
The rice mill gets an average investment subsidy of 1, 20,000 for installation of dryers and 2,
00,175 for generator. The rice mill now you get subsidy of 2,90,000 for new boilers. They got
subsidies for 6,87,127 for the last expansion of the unit. So, for the development of rice
Industries, government must provide the sales tax exemption.
The government now gives subsidy to ISO Certified units. The central government give
subsidy for paddy godowns under NABARD scheme.
Production Department
Under production manager comma there are three operations as given below:-
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1. Boiler operator
2. Dryer operator
3. Huller operator
There is one assistant and two helpers who work hand dryer operator.
Stems produced passes through a pipe line to boiling paddy. There are 6 tanks with 6 ton
capacity.
Four types of rays are produced as

1. Double boiled Matta (Short)
2. Double boiled Matta (Long)
3. Single boiled Matta
4. White Rice Double Boiled.
In boiled rice, boiling is done two times and once for singled boiled.
In the case of double bond rise, after the first boiling is done, the rice is again soaked in water
for 2 hours after which is it again boiled. This means paddy is weight less. The husk flowers
on top of the water. The assistant and the operator take the husk from the water. The husk is
sold for making cattle feed.
Bye- Products
Bran- with the help of paddy separator the rice mill gets super quality bran. Bran is the bye-
product of rice which gets in greater vale now. In Olden times the right of the brand is rupees
5 per kilo. Now it is raised a 2 rupees 14. This super quality bran is used for making oil being
used in manufacture of shops, cattle feed and capsules. Nowadays, demand for bran is
increasing.
Black rice and broken rice- Black rice and broken rice are also having greater value. Single
broken rice is used to make baby food.
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Husk- Husky is a waste from paddy and is used to burn the boiler. A part of the Husk is
obtained by the unit itself as fuel for the boiler. No shortage is envisaged for this item at
present.
Husk Ash- The brunt ash is wastes in olden days. the unit disposes of ash in their
agricultural fields and estates. Now it is used to make Sacred Ash for ritual in temples and
homes.
Manufacturing Process
The rice mill uses a number of paddy processing machineries such as paddy cleaner, stones
collector, husker, paddy separator, vertical and horizontal whitener, packing scale, steam
machines, testing machine etc. The use of modern machine and continuous caption of new
technology and progressive vision of the management helps the company in grow better and
better.
The Ultra Modern Rice Mill plant consists of pan boiling facilities, which process ensure that
the end product received is of super fine quality, fit for the market. Another very great
advantage of the process is that it does not get away with entrepreneurs dependence of nature.
The basic new paddy is fed into the first elevator and brought to the paddy cleaner to remove
chaff, dust, immature grains, big stones and hay. After this, paddy is stored in an overhead
storage tanks through the cleaned elevator. This is discharged into the pan boiling thanks by
gravity as and when required. The paddy fed into tank is steamed initially to clear the air
packet in the grain and the voids between the grains; the water is pumped at sufficient ratio to
the grain completely. Due to the heat in the steam grain, the cold water of temperature rises
between 65 to 75 degree. The temperature of water is kept at this level by circulating the
water and adding steam from time to time as per the necessity for 3 hours. Water is and
drained from the tank and then shocked paddy is steamed for 5 to 15 minutes in the tank.
The boiled paddy is taken to their dryer elevator through a conveyor system and loaded onto
the dryer. The dryer from is moisture content at 35 % to 14 % which is the optimum level. If
the moisture content for milling operations the dryer uses for hot air at a temperature of 120
30
degree Celsius that is obtained from cyclone furnace through hot air blower. the dried party
is stored in bins for milling operations.
The new machines like paddy separator, whitener, silky polisher, length grater etc give output
of two metric tons per hour.
The unit remove stones; dust etc. more than 3 times during the course of production.
The percentage of output from party is as follows

Rice 41%
Broken Rice 21%
Bran 8%
Husk 1%
Total 100%
Plant Layout
Plant layout to the arrangements of machines, equipments and other physical facilities within
the factory premises. Plan layout is a floor plan for determining and arranging the desired
machine and documents to the best place to permit the cutest flow of material at the lowest
level with least amount of material handling and processing the product from the receipt of
raw materials to statement of finished product.
Product layout is adopted in this form. Continuous production is going on product layout, it
means that the raw material paddy plant layout combine with manual process with automatic
machines.
Production Process
Rice occupies a very important place in agro based industrial production is the car in the
country it is estimated that more than 95 percentage of paddy cultivation is converted into the
rice with growing increase in production to the country rise of an important prominent role in
daily habits of people.
31
Continuous production is joined on the farm layout of that form layout of the end that is
product layout it means raw material was put on the first process machine and finished goods
was sent to paddy section as rice. Very little manual process is required because machine do
all operations
The various machines that are used for the production process and the action are as follows:-
Paddy Cleaner: - This is the machine used for cleaning the paddy. The basic raw
material is brought to the paddy cleaner through the first elevator to remove stones,
chaff, dust and immature grains, soil and hay.
Pneumatic Rubber Roller Sheller: - Selling of the party is the latest model paddy
husker which is specially designed to meet the demands of rice milling industries for
an automatic machine with large capacity. Rubber roller moment and the field shelter
are automatically controlled by the electronic pneumatic device. This ensures consent
and even degree selling without the need for frequent manual adjustment by the
operator. Has in conventional a rubber roll the degree of selling his higher that
manually operated Sheller also rice breakage is considerably reduced.
Huller: - The huller cuts and puts the bran layer. The bran passes through the cyclone
and gets to the rice.
Whitener: - It is the new machine which gives high polish to the rice. I reduce the
broken rice and it passes to next machine cone polisher.
Cone polisher: - After boiling, husk and paddy separation, the broken rice further
processed to remove the bran layer. This whitening or polishing process is generally
accomplished in two, three or four process. The number of process is being
determined by a variety of characterized and proceeding treatment to the broken rice.
The economy of rice mill greatly section, the aim is to obtain the maximum
percentage of highly pearled head rice, with a maximum of broken and bran.
Rice De-Stoner:- It is the machine which eliminates stones and dust in the rice and
also separate small broken rice from the lot.
Length Grader: - If length grader issued from separation of broken rice from full
long rice for the production of quality finished rice in the rice mills.
Thick Grader: - It separates rice by thickness. It removes immature grains like white
jelly to small sized black grains from boiled rice.
32
Sortex Machine: - There are different types of sortex machine for 48 to 160
channels. Larger the channel, higher the output. In each channel there are two types of
side cameras which capture black, brown and discolored rice.
Marketing and Advertisement

Marketing strategies basic task delegated to sales executive. Customer relation is of prime
importance to the sales executive. Sales managers and between the customer and the form
and must provide the gap primary through Sales force. The firm has sales representatives for
marketing products. This firm products three variety of rice, namely double boiled rice, single
boiled rice, and bran. The firm collect paddy either from farms for through agent. The
payment to representative salary and commission point the brand is JB RICE. Marathi
supplied to various places like Ernakulum, Thrissur, Idukki Thiruvananthapuram etc. The rice
mill also undertakes export of rice through exporting agents to Middle East countries.
Advertisement is important element has sales promotion measure. It plays a vital role in
process of moving well from producer to consumer. In this farm, advertisement is made
through journal banner's etc. The form under types exports through various export
companies.
Purchase Management
Paddy has three types, JyothyMata, Cherumani, Undamatta are the paddy purchased by the
firm. They purchase paddy from authorized suppliers, civil suppliers sec 17 for local area as
well as from other state. During harvester Seasons, they purchase paddy from local area also
when it is off season, they purchase from state like Tamil Nadu, Karnataka, and Andhra
Pradesh.
The paddy having less moisture is stored in godowns. They purchase paddy in bulk quantity
in season and store it to overcome the demand in this offseason. Certain muscles are used to
keep away flies and at for storing paddy for large time.
33
Chapter - 3
MARKET POTENTIAL OF RICE POWDER - ANALYSIS
3.1 Socio-economic profile of the respondents
Socio-economic characteristics of the respondents were analysed based on indicators such as

age, monthly income, place of residence, caste, no. of family members etc. are depicted in the
tables below. The socioeconomic characteristics of the respondents were analysed to have a
clear picture about the respondents basic background.
Table. 3.3.1.1 Socio economic Profile of respondents from customers of Rice Powder
Category Frequency
Male 24(40%)
Gender
Female 36(60%)
21.00 - 30.00 10(17%)
31.00 - 40.00 17(28%)
Age 41.00 - 50.00 23(38%)
51.00+ 10(17%)
<10000 23(38%)
10000-20000 25(42%)
Monthly income 20000-30000 11(18%)
>30000 1(2%)
34
<= 2.00 7(12%)
3.00 - 4.0 27(45%)
Family members 5.00 - 6.0 21(35%)
7.00+ 5(8%)
Matriculation 21(35%)
Plus Two 10(17%)
Education Degree 18(30%)
PG 5(8%)
Below Matriculation 6(10%)
Self employed 19(32%)
Employment Wage employed 21(35%)
Un employed 20(33%)
Total 60
Source: Primary data.
Classification of respondents based on the gender showed that 60 per cent is female and 40
present is male respondent.
Classification of respondents based on age shows that 38 per cent of the respondents
belonged to the age group of 41- 50 years. 28 per cent of the respondent belongs to 31 40
year. Both 21 30 years and above 51 years comes under 17 per cent.
35
The monthly income wise classifications 42 per cent of the respondents ranged between
10000- 20000 and 38 per cent of the respondents have an monthly income less than
10000, 18 per cent of the respondent have a monthly income between 20000- 30000 and
2 per cent of the respondents have an monthly income of more than 30000.
In which 45 per cent of the respondents are in a family which have 3-4 members, 35 per cent
of the respondents are in a family which have 5 - 6 members, 12 per cent of the respondents
are in a family which have 2 or less than 2 members and 8 per cent are in a family which
have 7 or more than 7members.
In which 35 per cent of the respondents are having the qualification of matriculation, 30
present of the respondents are having the qualification of graduation or degree, 17 percent of
the respondents are having the qualification of higher secondary or plus two, and 10 per cent
of the respondents are having below matriculation qualification. The respondents who having
post graduate qualification is comparatively less.
In the survey of employment 35 per cent of the respondents are wages employed people. The
percentage of unemployed respondents is 33 per cent and the percentage of self-employed
respondents is 32 per cent.
3.4 Market potential of rice powder
3.4.1Customers who use rice powder

Table 3.4.1.1 Customerwise classification of respondents (n = 60)
All customer use rice powder. Table 3.4.1.1 shows the customer classification of respondent
based on the purchase of Swad Food Product.
Customer of Rice Frequency Per cent

Powder
No 0 0
Yes 60 100
Total 60 100
Source: Primary data
36
In the survey 100 % of the respondents are the customer of Rice Powder. The percentage of
the non-customer respondent is 0%.
Table 3.4.1.2 How long have you been purchasing rice powder (n = 60)
Table 3.4.1.2 shows how long the rice powder is been using.
Frequency Percent
<1 YR 37 61.7
>3YR 1 1.7
1YR-2YR 15 25.0
2YR-3YR 7 11.7
Total 60 100.0
The survey shows that 61 per cent of the respondent use the rice powder for less than 1 year.
25 per cent of the respondent is use the rice powder for more than 1 year but below 2 years.
Table 3.4.1.3 Source of information (n = 60)
An information source is a source of information of somebody i.e.; anything that might

inform a person about something or provide knowledge about it. Table 3.4.1.3 shows the
various source of information regarding the knowledge about Swad Food Products
Source of information Frequency Per cent
Visual Media 38 63.3
Print Media 22 36.7
From the above analysis print (37%) and visual media (63%) are the most influencing source
of information for the respondents about the rice powder. Print and visual media are the most
depended source of information.
Table 3.4.1.4 Purpose for using Rice Powder (n = 60)
The table given below shows purpose for using Rice Powder
37
Frequency Percent
PURPOSE APPAM NA 27 45
y 33 55
Total 60 100
PURPOSE IDILI NA 27 45
y 33 55
Total 60 100
PURPOSE IDIYAPPAM NA 29 48.3
y 31 51.7
Total 60 100
PURPOSE DOSHA NA 31 51.7
y 29 48.3
Total 60 100
PURPOSE PUTTU NA 24 40
y 36 60
Total 60 100
Mostly for making all items like appam idili puttu idiyappam dosa, rice powder is mostly
used. In each cases the respondents uses half preference for each items.
Table 3.4.1.5 Company you prefer the most (n = 60)
Company you prefer the most is presented in table 3.4.1.5.
Company Frequency Per cent
EASTERN 30 50.0
38
ELITE 10 16.7
NIRAPARA 10 16.7
SWAD 10 16.7
Total 60 100.0
In the survey 50 per cent of the respondents are using the products of Eastern and 16 percent
of respondents are using the product from rest of the companies equally.
Table 3.4.1.6 Satisfied with the present quality you have (n = 60)
Table 3.4.1.6 depicts the satisfaction of quality for the rice powder
Satisfied Frequency Per cent
No 6 10.0
Yes 54 90.0
Among the various reason or factors, respondents satisfied with (90%) quality. Only (6%)
was dissatisfied with the quality of the product.
Table 3.4.1.7 Lack of Quality (n = 60)
The Lack of Qualityis depicted in Table 3.4.1.7.
Frequency Per cent
Yes 0 0
No 60 100
Here none of the respondents observed any lack of quality.
Table 3.4.1.8 The quantity often you purchase (n = 60)
Table 3.4.1.8 depicts the quantity often the respondents purchase.
Quantity Frequency Percent
39
1 KG 31 51.7
2 KG 15 25.0
3 KG 13 21.7
4 KG 1 1.7
Total 60 100.0
Respondents prefer to purchase 2 kg and shows the highest percentage as 51 percentages and
25 percentages are using 1 kg.
Table 3.4.1.9 How often you buy the rice powder (n = 60)
The durationof buying rice powder is presented in table 3.4.1.9
The duration of Using other brands Frequency Per cent
FREQ 44 73.3
OCCA 13 21.7
RARE 3 5.0
Total 60 100.0
In the survey majority of the respondents are using the rice powder occasionally and 23 some
frequently.
Table 3.4.1.10 Company Sell Better Product (n = 60)
Table 3.4.1.10 shows that which company is selling better product.
Company Frequency Per cent
EASTERN 30 50.0
ELITE 10 16.7
NIRAPARA 10 16.7
SWAD 10 16.7
Total 60 100.0
40
Table 3.4.1.10 above shows that 50 per cent of the respondents are preferring to use Eastern
brand.
Table 3.4.1.11 Are you satisfied with the price provided. (n = 60)
Reason Frequency Percent
N 42 70.0
Y 18 30.0
Total 60 100.0
Table 3.4.1.11 depicts that 70 % of the respondents are not satisfied with the price and only
30 percentages are satisfied. So, it should be revised.
Table 3.4.1.12 Faced and difficulty using rice powder (n = 60)
Table 3.4.1.12 depicts that the respondents find any difficulty using the rice powder.
Other Brands Frequency Percent
N 45 73.3
Y 16 26.7
Total 60 100.0
Respondents showed equal response towards the difficulty in using the rice powder.
Table 3.4.1.13 Product available in your area. (n = 60)
Table 3.4.1.13shows that whether the product is available in your area.
Frequency Percent
N 32 53.3
Y 28 46.7
Total 60 100.0
41
Respondents showed equal response towards the availability of rice powder in the area.
Table 3.4.1.14 how far to get the rice powder. (n = 60)
Decision maker Frequency Per cent
CLOSE 6 10.0
FAR 54 90.0
Total 60 100.0
The survey shows that 90 percent of the respondents are having the rice powder close to their
place.
Table 3.4.1.15 how the rice powder is acquired (n = 60)
The table 3.4.1.15shows that how the rice powder is acquired.
Method Frequency Percent

Grind at mill 10 16.7
Purchase 50 83.3
Total 60 100.0
It is observed from the table 3.4.1.15 shows that 83 percentage of the respondents are
purchasing the rice powder.
Table 3.4.1.16 Brand Preference (n = 60)
Brand preference of the respondents is presented in the table 3.4.1.16
Brand Frequency Percent
EASTERN 10 16.7
ELITE 10 16.7
NIRAPARA 30 50.0
42
SWAD 10 16.7
Total 60 100.0
It is observed from the table that 50 per cent of the respondents are preferring the brand
eastern. Majority of the respondents prefer the brand eastern.
Table 3.4.1.17 From where the rice powder is being purchased. (n = 60)
Frequency Percent
Retail Shop 50 77.7

Wholesaler 10 22.3
Total 60 100.0
The survey shows that majority of the respondents are buying the rice powder from the retail
shop.
Table 3.4.1.18 How you know about rice powder. (n = 60)
Frequency Percent
Media 45 75.0
Neighbor 8 13.3
Relatives 7 11.7
Total 60 100.0
The survey shows that majority of the respondents know about the rice powder from media.
Table 3.4.1.19 How long you take to purchase the product again (n = 60)
The table 3.4.1.19. shows the time taken to purchase the product.
Frequency Percent
More than a Month 17 28.3
43
More than a week 43 71.7
Total 60 100.0
The survey shows that 71 percent of the respondents buy the product weekly and only 30
percent of the respondents take it to buy monthly.
Table 3.4.1.20 Brand loyalty (n = 60)
The above table 3.4.1.20 shows the brand loyalty of the customers.
Category Frequency Percent
N0 29 48.3
Yes 31 51.7
Total 60 100.0
67 per cent of the respondents is telling that they are loyal to a particular brand. So it has
greater importance.
Table 3.4.1.21 Is there any improvement required (n = 60)
Category Frequency Percent
No 50 77.7
Yes 10 22.3
Total 60 100.0
From the above result shows that improvement is requested by 50 percent and no
improvement is said by the rest.
Table 3.4.1.22 Rating given to the various features of rice powder by Elite Brand (n =
60)
Table 3.4.1.22 shows Rating given to the various features of rice powder by Elite Brand
44
QUALITY ELITE Indicators Frequency Percent
GOOD 8 13.3
AVERAGE 43 71.7
POOR 9 15
Total 60 100
COLOR ELITE
GOOD 3 5
AVERAGE 42 70
POOR 15 25
Total 60 100
PACKAGE ELITE
AVERAGE 38 63.3
POOR 22 36.7
Total 60 100
CERTIFICATION ELITE
GOOD 17 28.3
AVERAGE 34 56.7
POOR 9 15
Total 60 100
LABELLING ELITE
GOOD 5 8.3
AVERAGE 43 71.7
POOR 12 20
Total 60 100
AVAILABILITY ELITE
GOOD 4 6.7
AVERAGE 22 36.7
POOR 34 56.7
Total 60 100
ADVERTISTMENT ELITE
AVERAGE 36 60
POOR 24 40
45
Total 60 100
OFFER ELITE
AVERAGE 47 78.3
POOR 13 21.7
Total 60 100
PRICE ELITE
AVERAGE 60 100
SATISFACTION ELITE
AVERAGE 60 100
From the above table, it is clear that different indicators are given of which price satisfaction
have no change whereas availability and packaging are given comparatively poor rating. And
quality colour certification offer and advertisement are given high priority
Table 3.4.1.23 Rating given to features of rice powder by Swad Brand (n = 60)
Table 3.4.1.23 shows Rating given to the various features of rice powder by Swad Brand
QUALITY SWAD
Frequency Percent
GOOD 3 5
AVERAGE 41 68.3
POOR 16 26.7
Total 60 100
COLOR SWAD
GOOD 3 5
AVERAGE 41 68.3
POOR 16 26.7
Total 60 100
PACKAGE SWAD
AVERAGE 33 55
POOR 27 45
Total 60 100
46
CERTIFICATION SWAD
GOOD 7 11.7
AVERAGE 36 60
POOR 17 28.3
Total 60 100
LABELLING SWAD
GOOD 9 15
AVERAGE 25 41.7
POOR 26 43.3
Total 60 100
AVAILABILITY SWAD
GOOD 11 18.3
AVERAGE 44 73.3
POOR 5 8.3
Total 60 100
ADVERTISTMENT SWAD
GOOD 3 5
AVERAGE 27 45
POOR 30 50
Total 60 100
OFFER SWAD
GOOD 14 23.3
AVERAGE 41 68.3
POOR 5 8.3
Total 60 100
PRICE SWAD
GOOD 16 26.7
AVERAGE 44 73.3
Total 60 100
SATISFACTION SWAD
GOOD 15 25
AVERAGE 45 75
47
Total 60 100
From the above table, it is clear that different indicators are given of which advertisement is
given comparatively poor rating. And the rest are given high good and average.
Comparatively good rating.
Table 3.4.1.24Rating given to features of rice powder by Nirapara Brand (n = 60)
Table 3.4.1.24 shows Rating given to the various features of rice powder by Nirapara Brand
QUALITY NIRAPARA
Frequency Percent
GOOD 5 8.3
AVERAGE 41 68.3
POOR 14 23.3
Total 60 100
COLOR NIRAPARA
GOOD 5 8.3
AVERAGE 42 70
POOR 13 21.7
Total 60 100
PACKAGE NIRAPARA
GOOD 2 3.3
AVERAGE 37 61.7
POOR 21 35
Total 60 100
CERTIFICATION NIRAPARA
GOOD 17 28.3
AVERAGE 34 56.7
POOR 9 15
Total 60 100
LABELLING NIRAPARA
GOOD 5 8.3
48
AVERAGE 43 71.7
POOR 12 20
Total 60 100
AVAILABILITY NIRAPARA
GOOD 5 8.3
AVERAGE 30 50
POOR 25 41.7
Total 60 100
ADVERTISTMENT NIRAPARA
GOOD 5 8.3
AVERAGE 41 68.3
POOR 14 23.3
Total 60 100
OFFER NIRAPARA
GOOD 8 13.3
AVERAGE 47 78.3
POOR 5 8.3
Total 60 100
PRICE NIRAPARA
AVERAGE 60 100
SATISFACTION NIRAPARA
AVERAGE 60 100
Table 3.4.1.24 shows that packaging and availability is given comparatively poor rating. And
the rest are as average. No element shows high good rating.
Table 3.4.1.25 Rating given to features of rice powder by Eastern Brand (n = 60)
Table 3.4.1.25 shows Rating given to the various features of rice powder by Eastern Brand
QUALITY EASTERN
Frequency Percent
GOOD 3 5
49
AVERAGE 41 68.3
POOR 16 26.7
Total 60 100
COLOR EASTERN
GOOD 3 5
AVERAGE 41 68.3
POOR 16 26.7
Total 60 100
PACKAGE EASTERN
AVERAGE 33 55
POOR 27 45
Total 60 100
CERTIFICATION EASTERN
Frequency Percent
GOOD 7 11.7
AVERAGE 36 60
POOR 17 28.3
Total 60 100
LABELLING EASTERN
GOOD 9 15
AVERAGE 25 41.7
POOR 26 43.3
Total 60 100
AVAILABILITY EASTERN
GOOD 11 18.3
AVERAGE 44 73.3
POOR 5 8.3
Total 60 100
ADVERTISTMENT EASTERN
GOOD 3 5
AVERAGE 27 45
POOR 30 50
50
Total 60 100
OFFER EASTERN
GOOD 14 23.3
AVERAGE 41 68.3
POOR 5 8.3
Total 60 100
PRICE EASTERN
GOOD 16 26.7
AVERAGE 44 73.3
Total 60 100
SATISFACTION EASTERN
GOOD 15 25
AVERAGE 45 75
Total 60 100
Table 3.4.1.25 shows good rating to many elements and that shows a positive sign.
Customers like the product much more than any other brand.
Table 3.4.1.26 Rating given to features of rice powder by Pavizham Brand (n = 60)
Table 3.4.1.26 shows Rating given to the various features of rice powder by Pavizham Brand
QUALITY PAVIZHAM
Frequency Percent
GOOD 5 8.3
AVERAGE 41 68.3
POOR 14 23.3
Total 60 100
COLOR PAVIZHAM
GOOD 5 8.3
51
AVERAGE 42 70
POOR 13 21.7
Total 60 100
PACKAGE PAVIZHAM
GOOD 2 3.3
AVERAGE 37 61.7
POOR 21 35
Total 60 100
CERTIFICATION PAVIZHAM
GOOD 17 28.3
AVERAGE 34 56.7
POOR 9 15
Total 60 100
LABELLING PAVIZHAM
GOOD 5 8.3
AVERAGE 43 71.7
POOR 12 20
Total 60 100
AVAILABILITY PAVIZHAM
GOOD 5 8.3
AVERAGE 30 50
POOR 25 41.7
52
Total 60 100
ADVERTISTMENT PAVIZHAM
GOOD 5 8.3
AVERAGE 41 68.3
POOR 14 23.3
Total 60 100
OFFER PAVIZHAM
GOOD 8 13.3
AVERAGE 47 78.3
POOR 5 8.3
Total 60 100
PRICE PAVIZHAM
AVERAGE 60 100
SATISFACTION PAVIZHAM
AVERAGE 50 83.3
POOR 10 16.7
Total 60 100
Above table 3.4.1.26 shows good rating to many elements and that shows a positive sign.
Availability and packaging are a drawback shown to this brand.
Table 3.4.1.27 Socio economic Profile of respondents from customers of Rice Powder.
GENDER Category Frequency Percent
53
F 4 13.3
M 26 86.7
Total 30 100
AGE
21.00 - 7 23.3
31.00 - 7 23.3
41.00 - 12 40
51.00+ 4 13.3
Total 30 100
LOACTION
R 13 43.3
U 17 56.7
Total 30 100
Classification of respondents based on the gender showed that 20 per cent is female and 80
present is male respondent. Majority of the age group is from 41 and above. And both rural
and urban area have equal response of retailors.
Table 3.4.1.28 Major rice powder in the shop
MAJOR RICE POWDER IN THE SHOP PUTTUPODI
Frequency Percent
N 9 30
Y 21 70
Total 30 100
54
MAJOR RICE POWDERP IN THE SHOP ARIPODI
N 3 10
Y 27 90
Total 30 100
Both Puttupodi and Aripodi have equal importance in sales. Also in some shops Aripodi is
having priority and in some other shops Puttupodi is having equal priority.
Table 3.4.1.29 How long you are using the rice powder.
HOW LONG USING RP

Frequency Percent
<1 YR 2 6.7
1YR-2YR 5 16.7
2YR-3YR 23 76.7
Total 30 100.0
Majority of the shops are selling the products for 2 years and more.
Table 3.4.1.30 Source of Information
SOURCE OF INFORMATION
Frequency Percent
PM 8 26.7
VM 22 73.3
Total 30 100.0
Visual media is having high priority in providing information about Rice powder
Table 3.4.1.31 Retailors who prefer which brand to sell
PREFERED BRAND
55
Frequency Percent
EASTERN 9 30.0
ELITE 4 13.3
NIRAPARA 12 40.0
SWAD 5 16.7
Total 30 100.0
Nirapara is the major brand sold in the market and eastern is a competing brand.
Table 3.4.1.32 Retailors are satisfied with the quality provided
QUALITY SATISFIED
Frequency Percent
Valid Y 30 100.0
All the retailors are satisfied with the quality provided.
Table 3.4.1.33 Rank given for Rice Powder Brand
RANK BRAND FOR RICE POWDER NIRAPARA
Frequency Percent
1 10 33.3
2 20 66.7
Total 30 100
RANK BRAND FOR RICE POWDER ELITE
1 1 3.3
2 9 30
3 17 56.7
56
4 3 10
Total 30 100
RANK BRAND FOR RICE POWDER SWAD
1 5 16.7
3 2 6.7
4 10 33.3
5 13 43.3
Total 30 100
RANK BRAND FOR RICE POWDER EASTERN
1 14 46.7
2 1 3.3
3 8 26.7
4 5 16.7
5 2 6.7
Total 30 100
RANK BRAND FOR RICE POWDER PAVIZHAM
3 3 10
4 12 40
5 15 50
Total 30 100
Nirapara is the top ranked brand among retailers and Eastern is the competing brand to
Nirapara in the ranking given by the retailors
57
Table 3.4.1.34 Rating given to the various features of rice powder by Elite Brand (n =
60)
Table 3.4.1.34 shows Rating given to the various features of rice powder by Elite Brand
QUALITY ELITE
Frequency Percent
AVERAGE 20 66.7
POOR 10 33.3
Total 30 100
COLOR ELITE
GOOD 3 10
AVERAGE 17 56.7
POOR 10 33.3
Total 30 100
PACKAGE ELITE
AVERAGE 18 60
POOR 12 40
Total 30 100
CERTIFICATION ELITE
GOOD 5 16.7
AVERAGE 21 70
POOR 4 13.3
58
Total 30 100
LABELLING ELITE
GOOD 6 20
AVERAGE 12 40
POOR 12 40
Total 30 100
AVAILABILITY ELITE
GOOD 4 13.3
AVERAGE 15 50
POOR 11 36.7
Total 30 100
ADVERTISTMENT ELITE
AVERAGE 21 70
POOR 9 30
Total 30 100
OFFER ELITE
AVERAGE 24 80
POOR 6 20
Total 30 100
PRICE ELITE
AVERAGE 30 100
SATISFACTION ELITE
59
AVERAGE 30 100
SUPPLY
GOOD 3 10
AVERAGE 17 56.7
POOR 10 33.3
Total 30 100
CREDIT
GOOD 3 10
AVERAGE 20 66.7
POOR 7 23.3
Total 30 100
From the above table, it is clear that elite has given high rating in credit supply packaging and
offer and advertisement.
Table 3.4.1.35 Rating given to features of rice powder by Swad Brand (n = 60)
Table 3.4.1.35 shows Rating given to the various features of rice powder by Swad Brand
QUALITY SWAD
Frequency Percent
GOOD 6 20
AVERAGE 24 80
Total 30 100
60
COLOR SWAD
AVERAGE 15 50
POOR 15 50
Total 30 100
PACKAGE SWAD
GOOD 11 36.7
AVERAGE 16 53.3
POOR 3 10
Total 30 100
CERTIFICATION SWAD
GOOD 8 26.7
AVERAGE 22 73.3
Total 30 100
LABELLING SWAD
GOOD 8 26.7
AVERAGE 22 73.3
Total 30 100
AVAILABILITY SWAD
GOOD 1 3.3
AVERAGE 21 70
POOR 8 26.7
Total 30 100
61
ADVERTISTMENT SWAD
GOOD 3 10
AVERAGE 20 66.7
POOR 7 23.3
Total 30 100
OFFER SWAD
AVERAGE 16 53.3
POOR 14 46.7
Total 30 100
PRICE SWAD
GOOD 5 16.7
AVERAGE 21 70
POOR 4 13.3
Total 30 100
SATISFACTION SWAD
GOOD 6 20
AVERAGE 12 40
POOR 12 40
Total 30 100
SUPPLY
GOOD 6 20
AVERAGE 11 36.7
62
POOR 13 43.3
Total 30 100
CREDIT
AVERAGE 22 73.3
POOR 8 26.7
Total 30 100
Swad is given an average rating among other brands.
Table 3.4.1.36 Rating given to features of rice powder by Nirapara Brand (n = 60)
Table 3.4.1.36 shows Rating given to the various features of rice powder by Nirapara Brand
QUALITY NIRAPARA
Frequency Percent
GOOD 3 10
AVERAGE 17 56.7
POOR 10 33.3
Total 30 100
COLOR NIRAPARA
GOOD 3 10
AVERAGE 20 66.7
POOR 7 23.3
Total 30 100
63
PACKAGE NIRAPARA
AVERAGE 19 63.3
POOR 11 36.7
Total 30 100
CERTIFICATION NIRAPARA
GOOD 5 16.7
AVERAGE 21 70
POOR 4 13.3
Total 30 100
LABELLING NIRAPARA
GOOD 4 13.3
AVERAGE 14 46.7
POOR 12 40
Total 30 100
AVAILABILITY NIRAPARA
GOOD 6 20
AVERAGE 24 80
Total 30 100
ADVERTISTMENT NIRAPARA
AVERAGE 15 50
POOR 15 50
Total 30 100
64
OFFER NIRAPARA
GOOD 11 36.7
AVERAGE 16 53.3
POOR 3 10
Total 30 100
PRICE NIRAPARA
GOOD 8 26.7
AVERAGE 22 73.3
Total 30 100
SATISFACTION NIRAPARA
GOOD 8 26.7
AVERAGE 22 73.3
Total 30 100
SUPPLY
GOOD 1 3.3
AVERAGE 21 70
POOR 8 26.7
Total 30 100
CREDIT
GOOD 3 10
AVERAGE 20 66.7
POOR 7 23.3
65
Total 30 100
Table 3.4.1.36 shows that poor quality labelling and advertisement. Comparing with other
brands Nirapara lacks bit low quality in everything.
3.5 Conclusion
This chapter examined the customers and retailers response towards market potential
of Rice powder. Retailers and customers response were analyzed by using different
measures such as awareness level, exposure level, influence etc. The satisfaction level was
also studied with the help of rank score and index. The major variables used for analysing
the Market potential were awareness level, satisfaction, brand preference and other elements.
Major findings and suggestions based on the observations were discussed in the next chapter.
66
Chapter - 4
SUMMARY OF FINDINGS, SUGGESTION AND CONCLUSION
6.1 Introduction
Rice (Oryza sativa L.) is one of the leading crops in the world and a close second to
wheat in its importance as a food cereal in the human diet. In 1999, about 560 million
metric tons (MMT) of rice were worldwide grown compared to 600 MMT for wheat, 300
MMT for oil seeds, and 900 MMT coarse grains (corn, sorghum, barley, oats, rye, millet
and mixed grains) (Saga V Food, 2000). In general, rice is harvested as paddy rice which
is dehulled to obtain the brown rice or cargo rice. The white rice is obtained after
polishing the brown rice. During the polishing process, broken rice is produced, which
serves as the raw material for production of rice flour.
In India, Kerala is one of the major consumer of rice. Rice and its by-products are mostly
consumed by every household in Kerala. Taking as a sample as Thrissur district we come
to know about the use of Rice and its subsidiary products. Rice powder is one of the
major product used in every house.
In this context the present study entitled Market potential of Rice Powder by
Jayabharath Modern Rice Mill, has done with the objectives; to know the demand of rice
powder. Out of the entire population of Thrissur Corporation, a sample size of 90 respondents
are taken. This includes 60 Consumers(Households) and 30 Retailors. The samples are taken
both from rural and urban areas of Thrissur Corporation.
67
6.2 Findings
1. The survey shows that majority percent of the respondents are aware of Rice Powder.
The Band Preference is one of the most important element stressed by the respondents.
The respondents are aware about the brand like Nirapara, Elite, Swad, Pavizham etc
2. Almost large numbers of the respondents are dont wish to shift their brand and only a
small number of the respondents are wish to change their brand.
3. Respondents identified availability and poor quality as a reason for brand shifting more
than any other reason.
4. Among the various brands available in the markets respondents are using the brand
Nirapara more than any other brand. Eastern and Elite and Swad was Equally ranked.
Followed by other brands. Majority of the respondents are using the other products
about more than 3 years. Eastern and Elite and Swadwere ranked equally as second in
the customer preference towards brands other than they are using.
5. Price proved by various brand in the market are not satisfied by the customers. The price
needs to be revised. If the price is too high people wont prefer to buy it in small packets
and they will prefer to grind it and it will lose the market.
6. Product is not easily available in the area. So it is an opportunity to make the product
reach the customer in a better manner.
7. Consumers prefer to by the rice powder frequently. Those who are using the rice powder
are purchasing the product frequently. They are not buying the product rarely and some
consumers by the product occasionally.
8. The quantity is the another thing with this study. Consumers are preferring the quantity
of purchase as 1 kg and the purchase it frequently. So the quantity can be sold in 1 kg, 2
kg, since most sales are done on these quantities.
68
9. Since the rice powder cant be stored for a long period, many customers faced difficulty
using the rice powder. The storage is a main drawback of using the rice powder and it is
amain issue faced by the difficulty in using the rice powder.
10. Mainly most of the customers are purchasing the rice powder rather than grinding it at
the mill. So there is a wide opportunity for the sale of the rice powder.
11. Retail shop is mostly preferred by the customers for the purchase of the rice powder and
some portion of the customers prefer the wholesale shop.
12. Ratings given for the different brand is the another indicator that shows the preference
of a brand based on the variables. Elite, Swad, Pavizham, Nirapara and Eastern. From
the data analysis it is clear that mostly all brand is having its own draw back and
Nirapara is the brand which is a more stable one. So it is taken as brand for further
studies.
6.3 Major suggestions
1. Visual media is more likely to improve the customer reach, and also increase the
frequency of advertisement through these media will help more sales.
2. The company should focus more on the variables like quality, packaging, availability,
advertisement, price offer etc. Because it is all these variables are highly influenced by
the consumers and retailers.
3. These media have sufficient popularity and influence in a purchase decision. The
company can use regional and national level print and visual media for this.
4. The product should be available to the customer in the reach. It should be available in
the local areas as well as popular areas. If the product is available in all areas.
Consumers prefer to by that particular brand.
5. Price is another element. Since our company is having the mill it will be possible to sell
the rice powder at better price so it should be also considered.
6. Introduce more retail outlets and make easy availabilityThe promotional strategy of
exhibition and offers and schemes is needed to improved.
7. Customer prefer to buy the product frequently. So the availability of the product is to be
ensured for a better sale and to create a brand image.
69
6.4 Conclusion
From the findings of this study, it is evident that brand for the rice powder evolved over time.
Price is an important factor needs to be considered.Market is changing and people are looking
for better products and those company which offer a better product becomes the market
leader.
Based on the findings, it was concluded that there was a great demand for the product Rice
Powder. Some Brands have high demand in the market, but even the frequent customers were
unaware about many other brands. Those who uses a particular brand prefer to continue it. It
is an opportunity for our company to emerge in the market.
70
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APPENDIX
KERALA AGRICULTURAL UNIVERSITY
VELLANIKKARA, THRISSUR
Market Potential of Rice Powder by

Jayabharath Modern Rice Mill Pvt (Ltd)
INTERVIEW SCHEDULE (CUSTOMERS)
(FOR ACADEMIC PURPOSE ONLY)
Socio-economic profile
1. Name : ____________________
2. Gender : Male [ ] Female [ ]
3. Age : _____
4. No. of Family Members : _____
5. Area of Residence : Rural [ ] Urban [ ] Semi-Urban [ ]
6. Education Qualification : Matriculation [ ] Plus Two [ ]Degree [ ]
P.G [ ]
7. Employment Status Self-Employed [ ] Wage Employed [ ]
Professionals [ ] Business [ ]
8. Are you using rice powder?
Yes [ ] No [ ]
9. How long have you been purchasing rice powder?
1 Year [ ] 3 Years [ ] More Than 3 Years [ ]
10. If yes, what are the purpose for using Rice Powder?
_____________________
11. Company you prefer the most? Why?

_____________________
12. Are you satisfied with the present quality you have?
Yes [ ] No [ ]
13. What is the lack of quality you observed?
______________________
14. How much quantity often you purchase
kg [ ] 1kg [ ] 2kg [ ] More Than 2KG [ ]
15. How often you buy the rice powder?
Frequently [ ] Occasionally [ ] Rarely [ ]
16. Which company is providing a much better product?
ELITE [ ] NIRAPARA [ ] PAVIZHAM [ ]
DOUBLE HORSE [ ] SWAD [ ]
17. Are you satisfied with the price of the product?
Yes [ ] No [ ]
18. If No, what is your preferred price?
_____________
19. Have you ever faced any difficulty in using rice powder?
Yes [ ] No [ ]
20. Is the product available in your home location?
Yes [ ] No [ ]
21. How long you have to move to get the product?
Far Away [ ] Close [ ]
22. Is the product from different company differs?
Yes [ ] No [ ]
AWARENESS
23. How you acquire the rice powder
Grinding at Home [ ] Grinding at Mill [ ] Local purchasing [ ]
24. Which Brand you often Prefer?
Elite [ ] Nirapara [ ] Pavizham [ ]
Double Horse [ ] Swad [ ]
25. How you came to know about the product?
Media [ ] Neighbours [ ] Relatives [ ]
26. From where do you purchase the rice powder?
Nearby Shop [ ] Retail Market [ ] Wholesale Market [ ] Direct Company [ ]
27. How you long you often take to buy the products again?
1-2 days [ ] 3-5 Days [ ] more than a week[ ] more than a month [ ]
28. Source of information about rice powder brands?
Print media [ ] Visual Media [ ] Other Media [ ]
29. Are you a brand loyal customer of any particular Brand?
Yes [ ] No [ ]
30. If yes, name the Brand.
_____________
31. The reason for using particular brand?
Quality [ ] Quantity [ ] Price [ ] Ingredients [ ]
Availability [ ] Brand Name [ ]
32. How long you are using the particular brand?
1 months [ ] 6 months [ ] More than a year [ ]
33. Do you have a substitute brand?
Yes [ ] No [ ]
34. If yes, name the Brand.

_____________
35. Is there any change or improvement can be made for the particular brand?
Yes [ ] No [ ]
36. If yes, specify the reason?
_________________
37. Special Features
Mark ()
ELITE SWAD NIRAPARA DOUBLE PAVIZHAM
HORSE
A B C D A B C D A B C D A B C D A B C D
Quality
Color
Package
Certification
Labelling
Availability
Advertisemen
Availability
Offer and
Gifts
Price
Satisfaction
Others
INDICATORS A Excellent B Good C Average D - Poor
KERALA AGRICULTURAL UNIVERSITY

VELLANIKKARA, THRISSUR
Market Potential of Rice Powder by

Jayabharath Modern Rice Mill Pvt (Ltd)
INTERVIEW SCHEDULE (RETAILORS)
(FOR ACADEMIC PURPOSE ONLY)
Socio-economic profile
1. Name : ____________________
2. Gender : Male [ ] Female [ ]
3. Area of Residence : Rural [ ] Urban [ ]
4. Major Rice powder product in your shop?
_____________________
5. How long have you been selling rice powder?
Less than a year [ ] 1-2 Years [ ] 2-3 Years [ ]
6. What is the lack of quality you observed?
______________________
7. Most Preferred Brand?
ELITE [ ] NIRAPARA [ ] EASTERN [ ] SWAD [ ]
8. Are you satisfied with the quality of the product?
Yes [ ] No [ ]
9. Source of information about rice powder brands?
Print media [ ] Visual Media [ ]
10. Rank for the brand

BRAND NAME RANK
NIRAPARA
ELITE
SWAD
EASTERN
PAVIZHAM
11. Special Features
Mark ( )
ELITE SWAD NIRAPARA DOUBLE PAVIZHAM
HORSE
A B C D A B C D A B C D A B C D A B C D
Quality
Color
Package
Certification
Labelling
Availability
Advertisemen
t
Availability
Offer and
Gifts
Price
Satisfaction
Others
INDICATORS A Excellent B Good C Average D - Poor
THANK YOU

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MARKET POTENTIAL OF RICE POWDER BY

JAYABHARATH MODERN RICE MILL

AKARESH JOSE (2015-31-009)

MINOR PROJECT REPORT

Submitted in partial fulfillment of the

MBA IN AGRIBUSINESS MANAGEMENT

COLLEGE OF CO-OPERATION, BANKING AND MANAGEMENT

Place: Vellanikkara Signature

Date: 17-04-2017 AKARESH JOSE

Jayabharath Modern Rice Mills is a record of project work done independently by

Place: Vellanikkara Dr. R. SENDIL KUMAR

Dr. R. SENDIL KUMAR

I bestow my abyssal indebtedness and gratefulness Dr. R. SENDIL KUMAR, PROFESSOR

Chapter No. Title Page No.

Table No. Title Page No.

3.4.1.4 PURPOSE FOR USING RICE POWDER 38

3.4.1.5 COMPANY YOU PREFER THE MOST 38

3.4.1.6 SATISFIED WITH THE PRESENT QUALITY YOU HAVE 39

3.4.1.7 LACK OF QUALITY 39

3.4.1.8 THE QUANTITY OFTEN YOU PURCHASE 39

3.4.1.9 HOW OFTEN YOU BUY THE RICE POWDER 40

3.4.1.10 COMPANY SELL BETTER PRODUCT 40

3.4.1.11 ARE YOU SATISFIED WITH THE PRICE PROVIDED 41

3.4.1.12 FACED AND DIFFICULTY USING RICE POWDER 41

3.4.1.13 PRODUCT AVAILABLE IN YOUR AREA 41

3.4.1.14 HOW FAR TO GET THE RICE POWDER 42

3.4.1.15 HOW THE RICE POWDER IS ACQUIRED 42

3.4.1.16 BRAND PREFERENCE 42

3.4.1.17 FROM WHERE THE RICE POWDER IS BEING 43

3.4.1.18 HOW YOU KNOW ABOUT RICE POWDER 43

3.4.1.19 HOW LONG YOU TAKE TO PURCHASE THE PRODUCT 43

3.4.1.21 IS THERE ANY IMPROVEMENT REQUIRED 44

3.4.1.22 RATING GIVEN TO THE VARIOUS FEATURES OF RICE 44

POWDER BY ELITE BRAND

3.4.1.23 RATING GIVEN TO FEATURES OF RICE POWDER BY 46

3.4.1.24 RATING GIVEN TO FEATURES OF RICE POWDER BY 48

3.4.1.25 RATING GIVEN TO FEATURES OF RICE POWDER BY 49

3.4.1.26 RATING GIVEN TO FEATURES OF RICE POWDER BY 51

3.4.1.27 SOCIO ECONOMIC PROFILE OF RESPONDENTS FROM 53

CUSTOMERS OF RICE POWDER.

3.4.1.28 MAJOR RICE POWDER IN THE SHOP 54

3.4.1.29 HOW LONG YOU ARE USING THE RICE POWDER 55

3.4.1.30 SOURCE OF INFORMATION 55

3.4.1.31 RETAILORS WHO PREFER WHICH BRAND TO SELL 55

3.4.1.32 RETAILORS ARE SATISFIED WITH THE QUALITY 56

3.4.1.34 RATING GIVEN TO THE VARIOUS FEATURES OF RICE 58

1.2 Statement of the problem

1.3 Objectives of the study

To identify the factors influencing the purchasing behavior of the respondent.

To study the market potential of Rice Powder in Thrissur District by Jayabharath

1.4.3 Sampling design

1.4.4 Data analysis

Percentage and indices were used for analysis of the data.

2 The recall of advertisement/commercials was determined by directing the respondents

3 Rank order scale

4 The suitability of various promotional activities were analysed on five-point scale:

Variables under study

1.7 Reviewof literature

Koekemoer, L. 2004. Marketing Communications.Juta and Company Limited, London. p.57.

Kotler, Philip. 1988. Marketing Management - Analysis, Planning, Implementation and

Kotler, Phillip. 1997. Marketing Management Analysis, Planning, Implementing and

Kotler. 2013. Marketing Management Analysis, Planning, Implementation, and Control.

[Anonymous]. 2015. SBDC [Small Business Development Corporation]. Marketing