Customer Preference and Perception Towards Edible Oil

CUSTOMER PREFERENCES AND PERCEPTION TOWARDS EDIBLE OIL
DECLARATION
I do hereby declare that the project entitled “CUSTOMER
PREFERENCES AND PERCEPTION TOWARDS EDIBLE OIL” is
the outcome of my independent project work carried out for the award of
Bachelor in Commerce under the guidance and supervision of
Dr. Yajnya Dutta Nayak, P. G. Dept. Of Commerce, Khallikote Auto.
College, Berhampur and the same has not been submitted any where
earlier for any other degree/ diploma.
(Tushar Dash)
+3 Final Year Commerce
Place : Berhampur Khallikote Auto. College
Date: Exam Roll No.: 011703CM402
Khallikote Auto. College (2017-2020)

ABSTRACT
Majority of Indian food items are prepared by utilizing edible oil.
Consumers' behavior frequently changes as per the new innovations,
changes in taste, like and dislikes related to food items. Edible oil is an
important element in food items.
Through this study, author has highlighted the brand references for
edible oil by consumers. Efforts have been made to understand the various
factors which are taking into consideration while purchasing edible oil.
Through the study author has also highlighted the variants of edible oil
preferred by the consumers. This study is also focused on the awareness of
consumers regarding the weight, expiry date, ingredients etc.of edible oil.
Edible oil is one of the most important components of food and a
major source of energy for human survival. It also contains saturated fats
which when consumed in excess can result in developing coronary
diseases. Most Ghanaian households use edible oils in preparation of their
Day-to-day meals. However there is a paucity of literature on the
knowledge, preference and perceptions of consumers on these edible oils.
Thus, the objective of the study was to ascertain consumer’s knowledge,
perceptions and preference of edible oil.

ACKNOWLEDGEMENT
To make any project report, essential requirements are able guidance
and references, without which the project is incomplete. For that, first I
would like to thank my respectable and learned guide, Dr. Yajyan Dutta
Nayak Sir for the interest shown by him, the inspiration and moral
boosting through him really helped me in completion of my project study.
Secondly, I would like to bestow my gratitude to Khallikote

Autonomous College, which provided me such opportunity to undertake
the project report on CUSTOMER PREFERENCE AND
PERCEPTION TOWARDS EDIBLE OIL.
Last but not the least, I am so thankful to my friends, parents and

faculty members of Commerce Department whose co-operation and moral
support has contributed major part in preparation of my project.
Place: Berhampur
Date: Tushar Dash

CONTENT
CHAPTER NO. TITLE PAGE NO.

1 PROFILE OF EDIBLE OILS 1
2 REVIEW OF LITERATURE 14
3 CONSUMER BEHVIOUR AND 27
PREFERENCES
4 RESEARCH METHODOLOGY 38
5 DATA ANALYSIS & INTERPRETATION 48
6 CONCLUSION AND RECOMMENDATIONS 55
BIBLIOGRAPHY 59
QUESTIONARIES 60
LIST OF TABLES AND GRAPHS
SN NO. TITLE PAGE NO.

1 BRAND WISE DISTRIBUTION 49
2 INCOME WISE DISTRIBUTION 50
3 AGE WISE DISTRIBUTION 51
4 CONSUMING FREQUENCY USAGE 52
5 AWARNESS 53
6 SPOT PREFERENCE 54

Chapter -01
Profile of EDIBLE OILS
1
1.1 INTRODUCTON
The Indian vegetable oil economy is the world’s fourth largest after the US, China
and Brazil, harvesting about 25 million tons of oilseeds against the world. Since
1995, Indian share in world production of oilseeds has been around 10 percent.
Although, India is a major producer of oilseeds, per capita oil consumption in
India is only 10.6 kg/annum which is low compared to 12.5 kg/annum in China,
20.8 kg/annum in Japan, 21.3 kg/annum in Brazil and 48.0 kg/annum in USA.
Vegetable oil consumption has increased following a rise in household
Incomes and consumer demand. India imports half of its edible oil requirement,
making it the world’s third-largest importer of edible oil .The country buys soya oil
from Argentina & Brazil and palm oil from Malaysia & Indonesia .Currently, India
accounts for 11.2 per cent of vegetable oil import and 9.3 percent of edible oil
consumption .India has a wide range of oilseeds crops grown in its different agro
climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, nigerseed/
Castor seed are the major traditionally cultivated oilseeds. Soya bean and
Sunflowers have also assumed importance in recent years.
Groundnut, soya bean and mustard together contribute about 85 percent of the
country’s oilseeds production .Coconut is most important amongst the plantation
crops. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil
Nadu in addition to Kerala and Andaman & Nicobar Islands. Among the non-
Conventional oils, rice bran oil and cottonseed oil are the most important. In addition,
oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are
also a significant source of oils. Until 2002, the olive oil sector in India was
predominantly unorganized. The olive oil industry in India is small and largely
people use it more for cosmetic purposes than for cooking. Today Indians are moving
to better cooking mediums like Olive oil for health and wellness reasons. Olive Oil
has always been placed somewhere between food and medicine and the biggest
2
challenge is to educate Indian consumers on the benefits of olive oil as a cooking
medium. Today, the domestic olive oil consumption is seen rising 25% annually.
1.2 HISTORY & PRESENT SCENARIO OF VARIOUS COMPANY
SUNDROP REFINED OIL
( By Agro Tech Foods LTD)
Company Established: 1986

Company Founder: Sachin Gopal
Company CEO: Sachin Gopal
Agro tech foods were invented in the year 1986 and were led by C .N.Balu. The
certificate of business was obtained by the agro tech on 9 th January 1986. Agro tech
foods ltd. First started its production and selling of sundrop refined oil in the 1989
and since then the growth in the field of edible oil production in India has
consistently growing.
• India is the world’s fourth largest edible oil economy, after USA, China and Brazil,
with 15,000 oil mills, 711 solvent extraction units, and 264vanaspati plants; and over
1,000 refineries employing more than one million people.
• The total market size is at Rs. 600 billion and import-export trade is worth
Rs.130 billion.
• India being deficient in oils has to import 40% of its consumption requirements.
• The domestic turnover of the vegetable oil industry is Rs.70, 000 crores and import-
export turnover of about Rs.16,000 crores per annum, consist of Rs.10,000 crores for
import of edible oils & Rs.6,000 crores for export of oilmeals, oilseeds castor oil,
groundnut oil & vegetable fats of tree borne oilseeds.
3
• India's edible oil industry is growing at a compounded annual growth rate (CAGR)
of 90 per cent. By rationalizing the import duty, the growth rate of sector may rise up
to 150 per cent by 2010.
• The total size of the olive oil market in India is around 4 million euro in terms of
value and 2,000 tonnes in terms of volume, out of which Spanish companies
command a share of about 60%.
• Currently, India accounts for 7.4% of world oilseeds output; 6.1% of world oil meal
production; 3.9% of world oilmeal export; 5.8% of world vegoil production; 11.2%
of world vegoil import; and 9.3% of the world edible oil consumption.
• India consumes over 4.5 million tons Palm Oil and other Palm Oil Products per
annum, while domestic production of Crude Palm Oil in India is hardly 60,000 tons
per annum and rising very slowly .
PATANJALI REFINED OIL
(By patanjali)

Company Founder: Baba Ramdev, Balkrishna
Company CEO: Acharya Balkrishna
In a country of population above 125crores there were many multinational companies
who were constantly fighting to increase their revenue and capture market but one
company which totally out performed every other company in this field within 4
years is Patanjali Ayurveda Limited. Patanjali earned revenue of more than
Rs10000cr in FY 2016 -17 and was the second largest FMCG brand by revenue in
India. Patanjali is an Indian FMCG brand which was established in 2006 by Baba
4
Ramdev and Acharaya Balakrishna with the sole objective to serve people of this
country with the science of Ayurveda and latest technology with ancient knowledge.
Mr. Balakrsishna holds more than 92% of ownership in company while company is
getting benefitted with the goodwill of Baba Ramdev and Acharya Balakrishna and is
constantly targeting new heights and setting higher targets for themselves.
Mr. Balakrishna has once said that “The time is changing and not only the policy
makers of India, but the whole world is realizing the importance of Ayurveda. Who
could have thought some years back that people with upbringing in cosmopolitan
culture would prefer bottle guard juice or gooseberry juice over carbonated soft
drink in future”. Reasons for Growth of Patanjali
1. Strong Brand Ambassador–Having Baba Ramdev as a brand ambassador is really
one of the reasons which have helped Patanjali to grow at this rate. Baba Ramdev is
well known for yoga and is a very popular face in India as well in other countries and
there are many people who can associate themselves with him and this adds the
customer base for Patanjali.
2. Focus on Swadeshi factor and Ayurveda products– The things is that the products
provided by Patanjali are made in India which help Indian Economy. As Patanjali is
an Indian company thus its growth and production contributes to Indian GDP.
Secondly the products are made from ayurvedic ingredients thus it is healthier than
products of other company.
3. Advertising- Patanjali does not believe in aggressive advertising as done by some
of its competitors. It focuses on information based advertising which instead of
making the product shown as premium ones, makes them look simple and disclose as
much information about it as possible. It does not have heavy expenditure on
advertising which helps in reducing its cost.
4. Variety of Products - Patanjali has not only been confined to a limited number of
products. It has diversified its products as much as it Can which is resulting in its
5
quicker growth. It expanded its products to oil, noodles etc which helped to grow as
it was a major contributor to their revenue.
5. Distribution System - Patanjali works by using Ayurvedic Clinics which are run by
entrepreneurs from their own investments. Patanjali trains and certifies these medical
practitioners assigned by the clinic and stores which in result builds trust and
credibility due to Baba Ramdev's credentials on Yoga and Ayurveda. These
practitioners in turn provide services and sell products at these stores and boost up
the sales. Patanjali also uses a different method of supply chain than its competitors.
It has a super distributor who would have five or six distributors under him and each
distributor will cover 15-20 retailers which helped him to grow his network.
Effect of Patanjali on FMCG Market
If we look at the records of Patanjali we can clearly see that it has grown at an
enormous rate and has now become one of the key contributors of the FMCG market.
In our research study we are looking at FY17 and FY18 FMCG market effect by
Patanjali.
Financial Year 2017-18
In this year Patanjali made revenue of about Rs.5008 crores doubling its revenue
from previous financial year. As of that year it only contributed 1.5 % approximately
to FMCG sector. Despite not holding a big share in FMCG contribution in the year it
did effect its customers but not have had a disruptive impact on others as competitors
still getting results in double digits.
The major impact was that most companies diversifying their portfolios to include
Ayurvedic and Herbal products. Since Patanjali's products are based on Ayurvedic
and Herbal ingredients which are considered natural and have no added chemicals
which attracted the buyers. So other companies also started innovating Herbal
products. Colgate launched its low priced Herbal toothpaste - Cibaca Vedashakti, to
counter its competitors like Dabur and Patanjali. Marico CEO said that there is huge
6
learning for all other companies as to how Patanjali scaled up quickly. He thinks they
as a market leader need to explore and innovate in this segment as he thinks multiple
players will help market to grow up. As Emami's director Mr. Goenka said “We are
not competing with Patanjali and Dabur, we have selected a niche audience, and if
they think ours is the purest honey, they would buy it. We are not competing on
price.” answering to a question on low price charged by Patanjali on honey. CEO of
Dabur said that Patanjali was now a year old and there is obviously higher
competition now but not of disruptive nature. Britannia's CEO stated “I think that
Patanjali's right to succeed is in very traditional products. However, I don't think that
we're brushing them aside. We are trying to see if there's anything that we can
incorporate to make sure that we do not let them become as big as they've become in
certain other traditional categories.”Some of these remarks clearly state that despite
Patanjali did not affect its competitor's financials but has brought back the Herbal
trend back which others also are trying to enter this sector. While most of the others
have focused on the Non- Herbal Products indicates that Patanjali does not create a
disturbing effecton its competitors since it has brought Ayurveda and Herbal back
HEALTHY & TASTY SUNFLOWER OIL
(By Emami)
Companu Established: 1974
Company Founder: Radhe Shyam Agarwal
Company CEO: Naresh Bhansali
Emami enters Indian kitchens with ‘Healthy and Tasty’ oil Plans to log in Rs 300
crore of business in the first year of launch . Targets the top two spots of the Rs
7
10,000-crore edible oil industry with a 10% market share by 2015. Product
uniqueness to be ‘health’ and ‘taste’ through retention of ingredient purity using
7stage EuropeanRefining Technology. Emami plans to produce 2000 tonnes of edible
oil per day from its Haldia factory in W. Bengal in a phased manner and also intends
to set up two more edible oil refineries in east and south coast’s The Rs 2500-crore
diversified Emami Group with a flagship presence in FMCG business through a
strong focus on personal healthcare and beauty products has now made a foray into a
hitherto untapped food and beverage (F&B) business with the launch of its edible oil
brand ‘Healthy and Tasty’. This is the first such F&B foray in the Group’s 36 year
old successful history. To tap the massive Rs 10,000-crore (Source: A C Neilson)
branded edible oil market (consumer packs) in India, Emami has launched six
variants of ‘Healthy and Tasty’ – soya bean, sunflower, palmolein, mustard, soya
bean blend and plamolein blend. Emami aims to target the growing number of health-
conscious middle class families by offering the max fine balance of ‘health’ and
‘taste’. Through its launch of Healthy and Tasty brand, Emami wants to break the
myth that tasty food is not good for health and healthy food is tasteless. The product
has been developed by adopting the 7 Stage European Refining Technology to create
a unique combination of purity and taste through retention of natural
Ingredients. The 7 Stage European Refining Technology has been developed in-
house. The technology helps control temperature and pressure in such a manner that
oil does not lose its natural nutrients. Besides the use of 7 Stage Technology ,
Emami has also adopted the First Press Technology for its Healthy & Tasty mustard
oil brand. Initially, sunflower oil will be outsourced from units in Andhra Pradesh,
while mustard oil will be outsourced from Rajasthan. Emami intends to project
Healthy & Tasty as health-smart oil and make it a Rs 1500-crore brand over the next
five years. Emami believes that the product will be a game-changer like its other
power brands - Boroplus, Navratna and Fair and Handsome as it endeavours to break
stereotypes related to oil consumption by introducing a brand which retains and
8
brings forth the good ingredients in edible oils while promoting the need for healthy
and balanced diet. The Healthy & Tasty brand is being launched in six variants,
distinguishable by the presence of constituents like oryzanol, ALA Omega 3 and
tocotrienols, besides having MUFA and PUFA. The constituents promote brain
health, lower the risk of cardiovascular diseases and provide skin nourishment.
Besides, the ingredients also help in lowering cholesterol levels and blood pressure.
The Healthy and Tasty variants will be available in diverse packages like 5-litre jars,
1 litre bottles and pouches and 500 ml pouch packs to suit the convenience of the
consumers. Emami has roped in cricketer, Mr M S Dhoni and Bollywood star, Ms
Preity Zinta, as the ambassadors for its Healthy & Tasty edible oil brand. Emami will
introduce the product in West Bengal, North-East and Karnataka which will be
followed by a pan Indian launch.We recognize that meeting our commitments is
paramount, and one of the changes we have made this year is our approach to
earnings guidance. We will now provide a directional outlook for the company as a
whole, based on prevailing market conditions, rather than trying to predict future
earnings based on external factors that we don’t control. We have also strengthened
our risk management capabilities with the recent appointment of new leadership.
SAFFOLA REFINED OIL
(By Marico)
Company Founder: Harsh Mariwala
Company CEO : Saugata Gupta
9
Marico is one of the well-known FMCG companies in India that have successfully
created brands in the largely commoditised business of hair oils and edible oils.
Background Marico is a leading Indian company with business interests in
manufacturing and retailing personal consumer products as well as providing services
in the beauty space.The company's history can be traced back to 1948 when the
Mumbai-based Mariwala family having a presence in the trading business set up
Bombay Oil Industries Ltd (BOIL). The manufacturing facilities of BOIL comprised
of a coconut oil extraction plant, vegetable oil refinery and a chemical plant. Over the
years, BOIL expanded and diversified into branded consumer products.The promoter
family then went on to incorporate a company called Marico Foods Limited
(subsequently called Marico Industries Limited and later Marico Limited) in 1988
and transferred BOIL's consumer products division to this company. In 1990 Marico
entered into an agreement with BOIL for the use of its coconut oil brand Parachute
and vegetable oil brand Saffola. It also purchased a unit at Jalgaon, Maharashtra, for
using it as a manufacturing base.Thereafter, to add to its product portfolio, the
company made several acquisitions.The prominent amongst these is the acquisition
of Procter & Gamble's anti-lice treatment business branded under the name Mediker
in 1999, followed by acquisition of the facilities of Kanmoor Foods at Saswad,
Maharashtra for manufacture of jams, sauces and other fruit and vegetable products
in the 2000. In 2001, Marico acquired the Parachute and Saffola brands from BOIL.
Marico ventured into skin care products in 2003 through the acquisition of Sundari
LLC in the USA, a manufacturer of luxury ayurvedic products and having a turnover
of approximately US$ 1.1 million. This entry in the skin care products market
represents Marico's first acquisition in a developed country. In 2004, Marico
commenced operations under the banner of Kaya Skin Clinics; offering scientific,
unisex dermatological procedures as well as skin care products. In January 2006,
Marico made a direct entry into the soap market in India through the acquisition of
the herbal bath soap brand Manjal from Kerala-based Oriental Extractions. Manjal
10
has an annual turnover of US$ 2 million through sales primarily in Kerala. In the
Indian market Marico's key strength is its extensive distribution network that reaches
out to about 1.7 million retail outlets spread across the country.The distribution
network comprises of 5 regional offices, 30 company depots and 6 consignment sales
agents that supply to 850 distributors in the urban areas and 11 super distributors in
the rural areas.The super distributors service more than 2600 stockists. Marico has a
marketing and distribution alliance with Indo Nissin Foods for Top Ramen. Marico's
manufacturing facilities are located at Jalgaon, Saswad and Sewree in Maharashtra,
Palakkad (Kerala), Ponda (Goa) and Dehradun (Uttaranchal). It also gets its products
manufactured through subcontractors. Products and brands Over the years Marico
has progressed into a consumer focussed FMCG company in the beauty and wellness
space through 12 well-established brands. It has three business segments – Consumer
Products (comprising the consumer products business of Marico Limited, Marico
Bangladesh Limited and MBL Industries Limited), Skin Care (services and products
retailed through Kaya Skin Clinics) and Global Ayurvedics (Sundari). Product lines
in the Consumer Products segment include coconut oil, hair care, anti-lice treatment,
refined edible oil, fabric care, processed foods as well as its distribution alliance with
Indo Nissin Foods.The brands in this segment and their extensions occupy leadership
positions with significant market shares in their respective product categories.The
flagship brand Parachute has maintained its market share at over 50 per cent . India in
the coconut oil categoryBeauty products include skin lightening complex, under-eye
gel, moisturizing sunscreen and night creme. Its products are a result of extensive
skin-care research in derma-cosmetic laboratories based in France, UK and USA.The
Global Ayurvedics segment comprises the Sundari skin care line that has 28 products
including cleansers, moisturizers and essential oils with formulations using plants
and floral extracts sourced from India. In the international markets the company's
product offerings include Parachute coconut oil and its extensions (Parachute Gold,
Parachute Lite, Parachute Sampoorna, Parachute Amla, Parachute Jasmine, Parachute
11
Beliphool), after shower cream (Parachute Advansed), hair cream (Style On) and hair
conditioner (Silk-n-Shine).
SUNLIGHT REFINED OIL
(By Fortune)

Company Founder: Gautam Adani
Company CEO: Adani Wilmar
Fortune in recent past has put on a huge impact on the edible oil industry by its price
and quality. In foods, its offerings include refined edible oils (Sweekar) and
functional foods aimed at prevention of chronic lifestyle disorders like diabetes.
Financial analysis In 2005 the consolidated turnover of the company (inclusive of the
turnover of its subsidiaries and Sundari LLC) crossed the US$ 200 million mark as it
ventured into new businesses and new geographies. The revenues of the International
Business Group, including the revenues of the two subsidiaries in Bangladesh,
crossed the US$ 20 million mark. On a standalone basis the company has notched a
sustained revenue growth up from US$ 130 million in 1999 to US$ 218 million in
2005, an impressive CAGR of 10 per cent. Raw / refined oils contribute nearly 70 per
cent to the revenue, hair oils contribute about 13 per cent, with the rest being
contributed by other products and services.The operating margin and net margin were
9.7 per cent and 7.7 per cent respectively in the year 2005 having witnessed an
increase over the previous year mainly on account of a fall in raw material prices
(mainly copra and karadi oil). Net profitability grew at a CAGR of 12 per cent
between 1999 and 2005, despite both Sundari and Kaya being at a development
phase and thereby unable to contribute to their fullest potential. The company
12
continues to remain low on debt, with a debt-equity ratio of 0.24. It has also
consistently shown a return on capital employed higher than 25 per cent over the
years. Marico's contribution in making “Made in India” global Marico has developed
a significant franchise across countries in the Middle East, Asian sub-continent,
Australia and USA. Its initial globalization efforts were targeted at the Indian
diaspora in the Gulf. Its International Business Group formed in early 1990's to cater
mainly to the demand of the non- resident Indians has over the years assumed a
phenomenal top line growth rate and is currently more than US$ 20 million in size. It
represents 10 per cent of the company's turnover and is ranked among the top three
export divisions amongst Indian consumer goods companies. It has also gone on to
obtain Export House status.While Marico commenced its export business with only
Parachute coconut oil, it currently exports a wide offering in hair oils, hair creams
etc. To enable country focus, Marico incorporated a 100 per cent subsidiary in
Bangladesh called Marico Bangladesh Limited in the year 1999 for manufacturing of
coconut oil. Marico Bangladesh has a retail reach of more than 2600 thousand
outlets. To focus further on its business in Bangladesh, in the year 2003 Marico
Bangladesh floated MBL Industries Limited as a wholly owned subsidiary. MBL's
principal activities are to manufacture market and sell coconut oils, hair oils and
other consumer products. The market shares of Marico's brands overseas have been
rising over the years. Parachute coconut oil is the market leader in Bangladesh with
almost half the market share, while hair oils and hair care products have been
consolidating their share of the market. The company continued to strengthen its
position in the Bangladesh market, acquiring a soap brand Aromatic that had a 5 per
cent market share and annual sales of Taka 300 million (US$ 4.8 million).This
complements Marico's earlier acquisitions in Bangladesh of two soap brands,
Camelia and Magnolia. Hair cream in the Gulf is increasingly growing into a big
brand. The acquisition of the Sundari range of beauty products provides a huge
opportunity to target the spa market.
13
CHAPTER – 02
Review of literature
14
2.1 INDIAN EDIBLE OIL INDUSTRY
Oilseeds and edible oils are two of the most sensitive essential commodities
in any economy. India is one of the largest producers of oilseeds in the world and this
sector occupies an important position in the agricultural economy accounting for an
estimated production of 28.21 million tonnes of nine types of oilseeds during the year
2007-08. India contributes about 6-7% to oilseeds production of the world. Export of
oil meals, oilseeds and minor oils has increased from 5.06 million tonnes in the
financial year 2005-06 to 7.3million tons in 2015-16. In terms of value realization it
has gone up from Rs.5514 crores to Rs.7997 crores during the same period. India
accounted for about 6.4% of world oil meal export.
India consumes around 11 million tonnes of edible oil in a year, which
includes imports of nearly 6 million tonnes. However, after China, India is the
world's biggest buyer of vegetable oil. The country meets half of its edible oil
requirements through import. To check the inflation, state-owned trading companies
often increase their overseas purchases. The Government has reduced levy on
vegetable oil four times last year and joined the club of China, Thailand and
Malaysia in safeguarding food supplies. There are two major features which have
significantly contributed to the development of this sector. One was the setting up of
the Technology Mission on Oilseeds in 1986. This gave a thrust to Government's
efforts for augmenting the production of oilseeds. This is evident by the very
impressive increase in the production of oilseeds from about 11.3 million tonnes in
1986-87 to 24.8 million tonnes in 1998-99. There was some setback in 1999-2000
because of the un-seasonal rain followed by inclement weather.
The production of oilseeds declined to 20.7 million tonnes in 1999-2000.
However, it went up to 27.98 million tonnes in 2005-06 and was 24.29 during 2015-
07. As per the 3rd advance estimate by Ministry of Agriculture dated 22.4.08 the
production of nine major oilseeds was estimated to be about 28.21 million tonnes
during 2007-08. The second dominant feature which has had a significant impact on
15
the present status of the edible oilseeds/oil industry has been the programme of
liberalization under which the Government's economic policy allowed greater
freedom to the open market and encouraged healthy competition and self-regulation
rather than protection and control. Controls and regulations have been relaxed
resulting in a highly competitive market dominated by both domestic and
multinational players. The policy and the business environment are conducive to the
growth of the sector meeting the huge domestic demand and catering to the
international markets as well. In the light of this the present study proposes to
analyse:
• The business environment existing for the growth of the edible oil sector.
• Recognition of the demand and supply gap existing in the domestic market and the
share of imports catering to the domestic need.
• Identification of domestic leaders in the business and the price behaviour of the
existing players.
• Finally a strategic framework for the domestic player to run a business in edible oil
successfully.
The study outlines the market scenario and the role of existing domestic
players. Based on the analysis, different strategies can be adopted by emerging
players on the market.
The Edible Oils Market in India

India is having a wide range of oilseed crops grown in her different agro-
climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed,
inversed/castor are the major traditionally cultivated oilseeds. Soya bean and
sunflower have also assumed importance in recent years. Coconut is the most
important amongst the plantation crops. Efforts are being made to grow oil palm in
Andhra Pradesh, Karnataka, Tamil Nadu, Kerala and Andaman & Nicobar Islands.
Among the non-conventional oils, rice bran oil and cottonseed oil are the most
16
important. In addition, oilseeds of tree and forest origin, which grow mostly in
inhabited tribal areas, are also a significant source of oils. Figures of estimated
production of major cultivated oilseeds, availability of edible oils from all domestic
sources and consumption of edible oils (from Domestic and Import Sources) during
the last few years
The demand for edible oil has been rising throughout the world but its supply
is limited. At present, import prices are at$1,100 a ton. A state-owned trading
company, MMTC invited bids for importing 6000 tonnes of crude palm oil and
40,000 tonnes of crude soya bean oil for April and May 2008. The country buys soya
oil from Argentina & Brazil and palm oil from Malaysia & Indonesia. India is a vast
country and inhabitants of several of its regions have developed a specific preference
for certain oils largely depending upon the oils available in the region. For example,
people in the South and West prefer groundnut oil while those in the East and North
use mustard/rapeseed oil.
Likewise several pockets in the South have a preference for coconut and
sesame oil. Inhabitants of the northern plain are basically hard fat consumers and
therefore, prefer Vanaspati, a term used to denote a partially hydrogenated edible oil
mixture. Vanaspati has an important role in our edible oil economy its production is
about 1.2 million tonnes annually. It has around 10% share of the edible oil market. It
has the capacity to absorb a heterogeneous variety of oils, which do not generally
find direct marketing opportunities because of consumers'preference for traditional
oils such as groundnut oil, mustard oil, sesame oil etc. For example, newer oils like
soya bean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and
forest origin have found their way to the edible pool largely through the vanaspati
route. Of late, things have changed.
Through technological means such as refining, bleaching and de-odorisation,

all oils have been rendered practically colourless, odourless and tasteless and,
17
therefore, have become easily interchangeable in the kitchen. Newer oils which were
not known before have entered the kitchen, like oils of cottonseed, sunflower, palm
or its liquid fraction (palmolein), soya bean and rice bran. These tend to have a strong
and distinctive taste preferred by most traditional customers. The share of raw oil,
refined oil and vanaspati in the total edible oil market is estimated at 35%, 55% and
10% respectively.
Scheme for Distribution of Subsidised Imported edible oils

In order to provide relief to the poorer sections of society from the rising
prices of edible oils, the Central Government introduced a Scheme for Distribution of
10 lakh tons of edible oils in 2015-16 at a subsidy of Rs. 15/- per kg. through State
Governments at one kg. per ration card per month with an additional subsidy of Rs
10/- per kg. from January, 2015 to March, 2015 on oils imported by PSUs and not
lifted by States. Four Public Sector Undertakings (PSUs), namely, PEC, MMTC,
STC and NAFED have been entrusted with the job of importing, refining, packing
and distribution of subsidized edible oils to the States. 29 States who had asked for
oil under the Scheme were allocated oil by the Department of Food & Public
Distribution from April 2015. The distribution of packed edible oil under this scheme
was operational in 12 States. The Scheme has ended on 31 -03-2015. From this date,
3.6 Lakh tons of edible oils have been contracted by the PSUs, of which 2.61 lakh
tons of packed edible oils has already been handed over to the States for distribution.
The total amount of subsidy distributed on oils was Rs. 424.25 crores. Government
decided that the balance quantity of edible oil lying with PSU's may be disposed of
on the open market to augment availability. Upto 25.5.2015. PSUs have disposed of
84,010 tons of edible oils .
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2.2 Edible Oil: The Case study
Soya bean is one of the largest oil seed crop in the world. It is primarily
processed to extract oil and meal. The meal extracted from the seed through crushing
is a rich source of protein, which is used as animal feed. Soya oil is used for edible
purpose, it also has medicinal and industrial applications. Soya bean is a legume crop
native to East Asia and has been used in China for more than1000 years. Beans
contain significant quantity of phyticacid, alpha-LinoJenic acid, and the isoflavones
genistein and daidzein. Soya bean production has shown substantial rise over three
decades. The output has increased from 62.2 million tonnes in 1980-81 to 246.1
million tonnes (estimates) in 2015-16. The CAGR recorded 4.93 during this period.
However, in the case of acreage, the CAGR is marginally lower at 3.47 for the same
period. As per recent USDA estimates, the global Soya bean output is expected to
reach a record high of 246.1 million tonnes during the 2016.The top three producing
countries the US, Brazil and Argentina contribute 80 percent of the total world
output. Among the major producers, the US tops the list with more than one-third of
the total global output followed by Brazil and Argentina.
The US output is estimated to reach a record highof 88.5 million tonnes
during 2015-16 . Except, in China and India, Soya bean output is likely to increase
sharply in the current year. Argentina, the third largest producer is expected to
produce 52.5 million tonnes, highest ever in the century. Meanwhile, the output is
expected to decline by a million tonnes in China, a largest consumer and importer of
edible oils. Soya bean oil is a major product of bean, used for edible purpose.
Developing countries are the major consumers of Soya bean oil. World trade in Soya
oil was stagnant at around 10 million tonnes for last ten years. As seen from the
following table the global output has increased by almost 10 million tonnes from
2015 to 2016. The highest production was during 2015-16, Ending stocks have
shown a declining trend during the past four years and it is expected to record the
decade low, estimated at 2.21 million tonnes in 2015-16. Domestic consumption of
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Soya oil is expected to rebound in 2015-16 and is estimated at 37.20 million tonnes
up by 1.46 percent from the previous year.
The Indian Scenario of Edible oil
India is one of the largest exporters of edible oils and most of the produce
is exported to the south-east Asian nations. Indian exports have almost doubled since
2009-10 and, recorded the highest during 2014-15, at 4.25 million tonnes. However,
India is one of the largest importers of crude Soya oil and other edible oils due to
domestic shortage. The Soya meal exports have been sustained at an average of
4million tonnes in the last three years, which is one of the major factors for the
bullish trend in Soya bean prices in recent years. India is one of the largest importers
of edible oils and it annually imports about 5-6 million tonnes of edible oils. Crude
Soya oil is the second largest imported edible oil after crude palm oil and India
imports about I -2 million tonnes of crude Soya oil annually, India does not import
refined Soya oil. 4.7 Edible oil on Major markets in India Madhya Pradesh and
Maharashtra are the biggest producers of Soya-bean in India and the major spot
markets are located in these two States. The important Soya bean spot markets are:
Indore, Ujjain, Dewas, Sehore, Bhopal, Rathlam, Neemuch. Guna and Mandsore,
Maharashtra: Nagpur, Nasik and Latur. Rajasthan: Kota 4.8 Domestic Soya bean and
Soya oil price influencing factors
• Rainfall (southwest monsoon) in Madhya Pradesh and Maharashtra
• Area under the crop in kharif season
• Yield and total output
• Global Soya bean production especially in the US, Brazil and Argentina
• Imports of Soya bean by China
• Import quantity of edible oil including crude palm oil and crude Soya oil
• Import duties on edible oils
• Government policies on the domestic edible oil sector and also on imports
20
• Soya meal exports from India
• Arrivals on domestic spot markets especially at Indore and Kota
2.3 Objectives & Development Policy of Edible Oils

In pursuance of the policy of liberalization, there have been progressive
changes in the Import Policy in respect of edible oils during the past few years.
Edible Oil, which was in the negative list of imports was first de-canalised partially
in April, 1994 when import of edible vegetable palmotein was placed under Open
General Licence (OGL) subject to 65% of basic Custom Duty. When edible oil
imports were placed under the OGL systemin 1994, private traders were permitted to
import any quantity of vegetable oils, subject only to a tariff. The tariff was initially
set at 65 per cent on all edible oils—still relatively high, but significantly below the
implied tariff when imports were under quantitative controls. Under the Uruguay
Round Agreement on Agriculture (part of the agreement establishing the WTO) India
also agreed to bound (maximum) tariffs of 45 per cent for crude or refined soya bean
oil imports. Tariffs on all other edible oil imports were bound at 300 per cent, except
refined rapeseed oil and crude sunflower-safflower oil, which were subject to over-
quota tariffs of 75 and 85 per cent, respectively. Subsequently import of other edible
oils was also placed under OGL, except Coconut Oil. The price movement of oil
has a major impact on the livelihood of large populations and prices are politically
sensitive. There has been regular intervention by the Indian Government in this
sector such as changing import duties, stock limits etc. In April 2013, India abolished
import duty on crude palm oil- a major substitute for soya oil. They lifted import duty
on crude soya oil from 20% in March 2015, Only 7.5 per cent duty is applicable for
refined soya oil. Prior to these reductions, edible oils were attracting import duty of
45-55 per cent. 4.10. Challenges and Opportunities in the Edible Oil Sector With its
large population and continued strong economic growth, India is likely to register
strong gains in total and per-capita edible oil consumption in the coming decades.
21
The extent to which increased consumption is met by imports—and the types of oil
imported—will be strongly influenced by India's trade and domestic agricultural
policies. Thus there is a requirement for reduction of dependence on edible oil
imports. That could be brought about by increased domestic oilseed production and
amongst others muchstronger price incentives, production and yield improvements
appended by stronger marketing strategies which will lead to efficiency at the
industry level. Several challenges crucial to the growth of the sector have been
identified:
Growing use of edible oils in recent years
• Dependence on vagaries of monsoon .The annual oilseed production of the country

is faced with a high degree of variation, as nearly 76% of the oilseeds area is under
rainfed conditions and therefore subject to uncertainties of moisture availability.
Availability of quality seeds of improved varieties and hybrids is grossly inadequate
22
and is one of the major constraints in enhancing the oilseed production. The farmers
are using predominantly the saved seeds, resulting in about 80% of the areas being
sown with farm saved seeds of old and obsolete varieties. It has been proved beyond
doubt that quality seeds alone can increase yield to the .extent of 25-30% over old
and obsolete varieties. With the exception of sunflower and castor, the seed
production of oilseeds is primarily left with the public sector agencies due to the
bulky nature of oilseed crops, the need for more investment on infrastructure and
less remuneration.
• Lack of adequate seed multiplication. Although there is enough breeder seed
production of most oilseed crops, further seed multiplication through foundation and
certified stages are the key constraints for availability of quality seed material.
• Production under energy starved conditions. There are energy-rich crops but in
India, they aremostly grown under energy-starved conditions. No use or low use of
plant nutrients is one of the most important factors for low productivity of oilseeds.
The nutrient requirement of oilseeds in general is high. All the nutrients need to be
supplied in adequate quantities for attaining high yields.
• Vulnerability to pests and diseases. Oil seed crops are prone to damage through 64
major diseases. Partial resistance is seen against 16 (25%) diseases. This indicates the
tack of genetic insulation against the majority of the diseases. Cultivars with a high
level of resistance are available for rust and downy mildew in sunflower; powdery
mildew, in rapeseed-mustard; rust in linseed; wilt and root rot in castor and mosaic
disease in soya bean.
• Resource poor farmers. Productivity of most of the oilseed crops has attained a
plateau and there is only a limited scope for further area expansion under oilseed
crops. The impact of new varieties and hybrids and other production technologies is
hardly visible in increasing production. The three important oilseed crops soya bean,
groundnut and rapeseed-mustard which together account for more than 75% of the
23
total area under oilseeds have not shown appreciable levels of growth in the last one
decade (Singh, 2007).
• Technical inefficiency of oil industry Little attention has been given to developing
both technical competence and professional skills to disseminate the improved
oilseed technologies to the field level staff as well as the oilseed growers.
• Weak transfer of technology The Indian processing industry suffers from several
lacunae like outdated technology, lower rates of utilization of installed capacity, low
oil recoveries and high unit costs. Reservation of oilseeds output for small scale
processing deprives the farmers and consumers of the benefits of lower costs of
modern processing technology, while putting up the costs for consumers. The cost of
vegetable oil processing in India is very high as compared with countries like China
and the USA mainly due to smaller capacities, low technical efficiency and low
capacity utilization.
• Biotechnological options for genetically enhanced germplasm Biotechnology
offers an impressive option to supplement the ongoing efforts for developing
genetically enhanced germplasm. Wherever damage is severe the resistance is too
low or absent. It could be augmented with transgenic sources. Modern tools like
molecular markers could be employed for enhancing the resistance.
• Exploiting niche areas of oilseeds cultivation Extending oilseed cultivation to
underutilized farming locations such as the rice fallows of eastern India and in some
coastal regions, where more than 15 million hectares under low land rice is one of the
opportunities for increasing the area under oilseeds. A major increase is also possible
through introduction of oilseeds through inter cropping, which is possible in nearly
45 million hectares under widely spaced crops like sugarcane, maize, cotton,
pigeonpea and plantation crops.
• Value addition to oilseeds, oils and by-products There are uncommon opportunities
to add value to different oilseeds and oils, which must be fully exploited,which will
eventually enhance the competitiveness and sustainability of these crops ‘Full value
24
addition to castor oil before exports alone can fetch an additional earning of
Rs.20,000 crores from the present level of Rs. 1000to 1200 crores annually. At the
same time, there is a lot of scope for the industryto exploit the by-products obtained
during vegetable oil processing for value addition.
The by-products of vegetable oil processing like gums, soap-stock, spent
bleaching earth, crude wax, deodorizer distillate are rich sources of various value
added products like lecithin, gfycolipids, oryzanol, fatty acids and their esters,
tocopherols, tocotriends, sterols, waxes, long chain fatty acids and fatty alcohols,
squalene, steryl esters etc. The Indian vegetable oil seed industry is now exploringthe
possibilities of value
addition to these by-products and thus enhancing the returns from the by-products.
• Scope for improving the efficiency of oilseed processing The overall capacity
utilization of both seed crushing and solvent extraction remains low due to the large
oilseed processing capacity installed. The Vertical integration of expelling and
solvent extraction alone can increase oil recovery by more than a million tonnes
worth about Rs.2,500 crores annually .
Availability of raw materials for edible oil production

• Exploiting supplementary sources of oil India is the least expensive cottonseed
producing country in the world .The Net cost of production of cotton unit is the
lowest in India due to high value of cottonseed that finds many uses in the country.
India produced 7.7 lakh tonnes of cottonseed oil (2014-15), but a report says that
around 4-5 lakh tonnes of cottonseed oil is being lost every year due to wrong
feeding of undecorticated cottonseed. If this lacuna is rectified, around 12 tonnes of
cottonseed oil can be produced annually at a cheaper rate in the country.The country
has vast potential for growing oil palms. The farmers have now realized that oil palm
is a potential paying crop compared with the other competing crops. India produced
50,000 tonnes of palm oil during 2014-15, However, to increase the production of
25
palm oil and reduce its import, there is the need for a strong political will and
commitment. Promotion of cost effective technologies to producecheaper oil palms
will improve palm oil production.
• Public- private partnership in varietal development The public sector has to
strengthen its network for developing improved varieties/ hybrids of oilseeds and
must encourage the private sector too in the production of hybrids and dissemination
of technologies. The public sector must play a crucial role in facilitating germplasm
research in the private sector and join hands with it in promoting the existing
technologies among the farmers.
• Promotion of contract farming Contract farming needs to be promoted for oilseed
cultivation by the processing industry to ensure availability of quality seeds and other
inputs to farmers and timely and adequate supply of quality oilseeds for processing at
mutually beneficial prices and cost.
• Gap-specific extension strategies Plugging situation-specific gaps in adoption
would prove the best strategy for working out the technological content of any
extension activity. The gap in such adoption should not only be assessed but
alsofilled up. Preference should be given to those practices that are found in success
stories and that are generated under the technological management component.
Thereis also a need to work out gap-specific extension strategies for dissemination of
appropriate technologies.
• Providing effective market linkage The World Bank report "The Indian Oilseed
Complex (1999)" recommends the following measures for strengthening the
marketing of oilseeds, cakes and better enforcement of regulated markets;
• Strengthening the appropriate market institutions
• Introduction of forward marketing and contractfarming
• Promotion of market integration
• Price incentives for edible oil shortage
26
CHAPTER -03
Consumer BEHAVIOUR AND
PREFERENCES
27
Marketing Strategies
The retail sector is one of the most competitive in the business world, and so
effective marketing strategy is needed in order to be successful. However, many
retailers get caught up in the day-to-day running of their companies and don’t use all
their business strategy expertise to push their business forward. When a customer
steps in a retail store or display centre, he wants quick reach to his desire
product.The arrangement of products is the very key factor in retail store sale.For
that some of the marketing strategies are:
Think as a Customer
Merchandising or displaying products should be according to you targeted
customers. For example, if your target market is children then arrange your products
as per their level where they can reach easily. Enter into your retail store and assume
that you are here for a shop, then think what thing should me where and what
arrangement will be the best for customers. You can visit different other stores and
learn what is good out there and what you can adopt.
Keep Display Focused

Make a list of products according to priority level and then display those
products. The front display should be the reserve for your premium products where
customers attract more. Something you to sell more, display at the heart of your
store.
Display Angles
Research examine that while displaying products in the retail store, angles
must be considered. Each product has its own angle for display. For example, if you
are selling floor solutions, the put them on the floor so that customer can experience
them as a real.
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If you are selling washroom wall tiles then display them just like a real washroom,
so that customer experience those tiles as a real. Particularly, talking about bath
vanity, display them with proper height and angle.
Products Positioning
Positioning is the very important element in customer satisfaction. Customers
make perception about products as per their standards, mind-sets, and classes. When
you are displaying your products, considered their positioning too. It means, places
high positioned products on prominent places and place where a customer can
access easily.
Good Presentation
The presentation is everything. The way your present things will be perceived
as same. Visual merchandising is all about presentation. Make your presentation
good and arrange your products in a way just like customers want. Improve your
product presentation with appropriate Colours, Lights, Photographs, and Graphics.
Create Experience Shop

One step ahead from the traditional retail shop, create experience shop. Use of
products actually creates experience which leads to repeated sale or switching to
other brand or products. Create the environment, where the customer actually
experiences products before buying products. For example, If the customer wants to
buy wall tiles, create the opportunity to present tiles on wall with a proper display.
Use the Internet

With the Internet increasing in popularity all the time, it is extremely
important to use Internet marketing as a way to improve market share. In order to
improve your access to customers, create a web site where customers can view your
merchandise and possibly buy products online. Selling your products online is a
great way of expanding your business without having to spend lots of money on new
29
premises or retail locations. However, if you don’t want to develop online business,
then you can still advertise your business online. Effective marketing strategy should
use all mediums available to improve business exposure, and with online advertising
a low cost and effective medium it makes sense to take advantage of the
opportunity.
Offer a promotion
Retail business is extremely competitive, and so even the smallest of
promotions can give you an edge over your competitors. Your business strategy
should be to come up with regular and innovative promotions to entice customers
into your store. These promotions can range from offering a free gift with certain
products to a competition entry when certain items are purchased. If you keep your
marketing strategy fresh with new promotions then you will definitely remain
competitive and will attract customers to your products.
Although you can use plenty of complex marketing strategy techniques to
attract customers, nothing is simpler and more effective than having a bold and
effective storefront and signage. If you have a shop window, then keep the displays
up to date and imaginative. Change the display each season and alter your sign every
few years to keep things looking good. However, make sure that you keep the
signage them constant so that your brand and store are easily recognisable. Make
sure your sign can be seen from as far a distance as possible. Sometimes, the
simplest marketing strategies are the best, and keeping your store bright and
attractive is one such method.
Ask customers what they want
Your marketing strategy ideas might be great, but if you really want to
improve your business then you need to ask the people that matter most the
customers. Effective marketing strategy should always begin by asking customers
what sort of products, services and promotions they want. This will give you a better
idea of how to market your products and improve your customer base. If there is one
30
thing you should learn about effective business strategy, it is to listen to your loyal
customers and then cater to their needs through effective marketing strategy.
The marketing strategy section of the business plan describes who your
customers are and what ways you'll reach them about the goods and services you
offer. If the consumers don’t know about your business, you can’t stay in business
very long. Besides, a breakdown on who you’re selling to, also explains the
competitive analysis of your business.
Marketing Mix (4 P’s):
Retailers use various advertising and communication tools to grow awareness and
considerations with future customers. Finding the right marketing mix can lead to a
profitable growth and a higher return on investment. By considering the right
advertising strategy retailers can persuade consumers to choose to do business with
their retail brand. The fundamental approach used my modern retailers in marketing
their products is the Four Ps of Retail Marketing.
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Product: There are two primary types of merchandise. Hard or durable goods like
appliances, electronics, and sporting equipment. And soft goods like clothing,
household items, cosmetics, and paper products. Some retailers carry a range of hard
and soft items like a supermarket or a major retail chain while many smaller retailers
only carry one category of goods, like a boutique clothing store.
Price: Pricing is a key element to any retail strategy. The retail price needs to cover
the cost of goods as well as additional overhead costs. There are four primary
pricing strategies used by retailers:
1. Everyday low pricing: The retailer operates in thin margins and attracts customers
interested in the lowest possible price. This strategy is used by big box retailers like
Wal-Mart and Target.
2. High/low pricing: The retailer starts with a high price and later reduces the price
when the item’s popularity fades. This strategy is mainly used by small to mid-sized
retailers.
3. Competitive pricing: The retailer bases the price on what their competition is
charging. This strategy is often used after the retailer has exhausted the higher
pricing strategy (high/low pricing).
4. Psychological pricing: The retailer sets the price of items with odd numbers that
consumers perceive as being lower than they actually are. For example, a list price
of $1.95 is associated with spending $1 rather than $2 in the customer’s mind. This
strategy is also called pricing ending or charm pricing.
Place: The place is where the retailer conducts business with its customers. The
place can be a physical retail location or a non-physical space like a catalogue
company or an e-store. While most retailers are small, independently owned
operations (over 90%), over 50% of retail sales are generated by major retailers
often called “big box retailers”.
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Promotion: Promotion is the final marketing mix elements. Promotions include
personal selling, advertising, sales promotion, direct marketing, and publicity. A
promotional mix specifies how much attention to pay to each tactic, and how much
money to budget for each. A promotion can have a wide range of objectives,
including increasing sales, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or the creation of a corporate image.
The Four Ps Revisited: Customer-Oriented Retail Marketing
In recent years, to address the need of taking a more customer-oriented approach to

marketing, the 4 Ps of Retail Marketing have been revised and replaced by the 4 Cs:
Consumer, Cost, Communication, and Convenience.
Consumer (versus Product): Instead of focusing on the product the retailer wants to
sell, a smart retailer studies the wants and needs of its consumers before going to
market. The more clearly a retailer understand the wants and needs of its customer
base, the greater chance it will have of attracting customers and increasing sales.
Cost (versus Price): In retail a cost is the value of money that has been used up to
produce something. Factors that influence cost include the customer’s cost to change
to a new product and the customer’s cost for not selecting a competitor’s product.
Convenience (versus Place): The Internet has made Place less of a factor in
consumer purchasing decisions. Convenience addresses the ease of completing a
transaction including the ease of finding information about a product, finding the
right product, and purchasing a product.
Communication (versus Promotion): Communications including a range of efforts

including advertising, public relations, grassroots efforts, social media, and any
other form of communication between the company and the consumer.
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PROMOTIONAL STRATEGIES
Communication Strategy- Reaching out to the customers in their own language

E.g. The first Shoppers Stop store in Lucknow was named “Tehzeeb’. Festive
Promotion Campaign “PARIKRAMA”. Customers getting opportunity interact with
local artisans.
Organizes major Promotional Events from time to time

E.g. “Fly to Santa Land”, “Gear up for school” and “eat healthy stay healthy
exchange offer.”
Organises Local Festivals
E.g. Durga Puja in Kolkata, Onam in South and Dhanteras in North.
PRICING STRATEGIES
Shoppers Stop follows Premium Pricing Strategy that includes selling of

High Quality Products at a Higher Price.
CUSTOMER SATISFATION
Many retail shops Exudes Class, Comfort, Convenience where ever it is

located. It not only concentrates on the location of the stores but also emphasizes on
the ambience and service excellence. Shoppers Stop is Indian largest chain of Super
Stores with an aggregate acquired area of 11lakh sq. feet.
COMMUNICATION MIX
It refers to a co-ordinated communications program that is customer focused

and internally consistent.
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The different IMC elements are:
• Advertising:
Advertising is a means of communication with the users of a product or
service. Advertisements are messages paid for by those who send them and are
intended to inform or influence people who receivethem.
Advertising is always present, though people may not be aware of it. In
today's world, advertising uses every possible media to get its message through. It
does this via television, print (newspapers, magazines, journals etc.), radio, press,
internet, direct selling, hoardings, mailers, contests, sponsorships, posters, clothes,
events, colours, sounds, visuals and even people (endorsements). There are three
types of advertisements -
▪ Print Advertisements
▪ Media Advertisements
▪ Outdoor Ads
• Sales Promotion:
Sales promotion refers to ‘those marketing activities that stimulate consumer
shows and expositions. Purchasing and dealer effectiveness such as displays,
demonstration and various non- recurrent selling efforts not in the ordinary routine.
Sales promotion means any steps that are taken for the purpose of obtaining an
increasing sale. Often this term refers specially to selling efforts that are designed to
supplement personal selling and advertising and by co-ordination helps them to
become more effective.
Sales promotion includes all forms of sponsored communication apart from

activities associated with personal selling. It, thus includes trade shows and exhibits,
combining, sampling, premiums, trade, allowances, sales and dealer incentives, set
35
of packs, consumer education and demonstration activities, rebates, bonus, packs,
point of purchase material and direct mail.
• Direct Marketing:
Direct marketing is a form of advertising in which companies provide
physical marketing materials to consumers to communicate information about a
product or service. Direct marketing does not involve advertisements placed on the
internet, on television or over the radio. Types of direct marketing materials include
catalogues, mailers and fliers. Direct marketing removes the "middle man" from the
promotion process, as a company provides a message directly to a potential
customer. Companies with smaller advertising budgets typically use this type of
marketing since they cannot afford to pay for advertisements on television and often
do not have the brand recognition of larger firms.
• Public Relation:
A public relations (PR) strategy may play a key role in an organization's
promotional strategy. A planned approach to leveraging public relations
opportunities can be just as important as advertising and sales promotions. Public
relations are one of the most effective methods to communicate and relate to the
market. It is powerful and, once things are in motion, it is the most cost effective of
all promotional activities. In some cases, it is free.
• Point of Purchase:
A point of purchase (POP) is a place where a sales transaction occurs. On a
macro level, a point of purchase may be a mall, market or city. On a micro-level,
retailers consider a point of purchase to be the location of checkout, which can be in-
store or online. It is also known as the point of sale (POS).
• Publicity:
36
Publicity is the movement of information to the general public from the
media. The subjects of publicity include people (for example, politicians and
performing artists), goods and services, organizations, and works of art or
entertainment.
Publicity is gaining public visibility or awareness for a product, service or your

company via the media. It is the publicist that carries out publicity, while PR is
the strategic management function that helps an organization communicate,
establishing and maintaining communication with the public. This can be done
internally, without the use of media.
• Special Events:
A special event is a function or "occasion" which, in fundraising terms, aims
to generate money for the community group or not-for-profit which stages it. There
are many different types of special events, each with their own different level of
complexity and suitability for different groups.
• Packaging:
Publicity is also a way of mass communication. It is not a paid form of mass
communication that involves getting favourable response of buyers by placing
commercially significant news in mass media. Publicity is not paid for by the
organisation. Publicity comes from reporters, columnists, and journalists. It can be
considered as a part of public relations.
37
CHAPTER- 04
Research METHODOLOGY
4.1 Importance of the study

In today's retail environment it is critical that retailers face the facts and start
managing their business into the future with a particular focus on retail financial
disciplines.
38
Retailing is a fast-changing industry in which you must be able to quantify
important financial information. Both today and in the future, this will help you
build a sustainable winning product offer for your customer. The result - business
growth and the freedom to pursue new directions and innovations as your
customers’ expectations change and as new competitors enter the market.
These disciplines will result in a higher quality in visual offering and when planning
the product range, it will force you to think about space management, hot spots,
visual merchandising and traffic flows within the store.
“Close enough" is not good enough and “gut feel retailing" will not work
effectively for you to maximise the potential of your retail business and the return on
your substantial investment. It is therefore important that you have the management
“culture" required and have the people who are “bigger" than the job that will take
ownership of the planning methodology required in retail financial disciplines.
The retail financial management steps that will enable you to manage this
challenge are:
1. Embrace category management: All retailers must ensure superb category

management principles are present. This enables you to micro manage the business
across the categories and allows further “drill down" to sub categories. It will also
focus you on category strategies to improve store traffic flow, increase transaction
size, and increase gross profit.
2. Product family trees/ product mix: Retailers must build their product range for
their customer. The family tree is a method that allows the scope of the mix to be
determined well in advance of the purchasing decision. This is often referred to as
“building a buying plan not a spending plan". The facts are that “less is more" in
retailing. This means that 80% of sales will come from 20% of the product range-
therefore how to plan to ensure that the 20% is constantly on the shelves is an
ongoing issue for many retailers.
39
3. Implementation of Information Technology: In today's high tech world there is no
excuse for not having up to date information on your business performance.
Inventory is your biggest asset and not to understand best sellers, worst sellers,
inventory values and importantly your future purchase orders will result in reactive
management rather than proactive management.
4. Understanding Key Performance Indicators (KPI's): There are many KPI's in

retailing but quantifying your buying margin, sales , inventory levels, markdowns ,
stock turn, purchase orders, final GP, and shrinkage by category are basic
requirements that must be understood by the your management team. To have a
culture that talks about selling “heaps, lots and plenty" is not industry best practice.
5. Merchandise Financial Planning (MFP): This is often referred to as Open to Buy

(OTB) and without doubt is the single most important retail financial methodology
that retailers must embrace. This involves planning your inventory levels (and
therefore range) by category by future months using the retail KPI's. This provides a
wonderful understanding of the direction of the business and allows you to go into
the market with confidence to purchase to a predetermined budget. It will allow you
to see “what if" scenarios well in advance. From this buying plan a “shopping list"
of product is developed by month by category.
6. Range planning - building the offer: on completion of the buying plan retailers
must ensure that they build the range plan or “shopping list" of product. The family
tree concept is a marvellous tool that will enable buyers to build a story board of
product well in advance of the delivery. This will highlight any shortcomings or
gaps within the range. The MFP program calculates the spend which is then
allocated to the product family tree.
7. Profit and loss outcomes: Retailers must put in place adequate monthly Profit and
Loss controls that allow confirmation of the actual Net Profit of the business. This
40
must include accurate stock on hand information (from the POS) so that
confirmation of final GP and expenses are in a format that can be reviewed ongoing.
Relying on your accountant's yearly accounts after the financial year closes may not
be sufficient to allow you to react to trading trends during the year. The MFP is the
methodology that allows the Profit and loss outcomes to be planned well in advance.
Business owners need to ensure that the business builds retain earnings to fund
growth and allow for possible passive investment activities to take place e.g.
purchase of a building, superannuation and / or investment in shares. Putting in
place adequate planning and management controls will provide an improved focus
on the net assets of the business.
8. Cash Flow management: A detailed understanding of your cash flow needs is part
of the planning required in retailing. Once a detailed buying plan is in place and you
understand the profit outcomes from this plan, a forward cash flow can be prepared
to ensure adequate capital is available to fund the plan.
4.2 Scope of the study

The overall objective of retail marketing and edible oils marketing is creating and
developing services and products that meet the specific needs of customers and
offering these products at competitive, reasonable prices that will still yield profits.
Businesses must realize that, in retail, the customer lies at the centre of any
organization's marketing efforts, determining the overall success of the product or
service.
Understand Your Customer

It is imperative that you understand your target customer. If you primarily sell
children’s clothing, you should be targeting females in their 20s and 30s. Your
business should take the time to know these women: what reaches them, what makes
them tick, what they truly need out of your product. Your understanding of your
41
target customer will allow you to communicate better with them, identify their
market potential, customize product offers to them according to various market
segments and consider their needs during product changes and updates.
Make Connections
A primary goal of retail marketing is understanding the connections between

the customer’s lifestyle and spending characteristics and why he chooses one
product over another. Using this knowledge, businesses can develop their products
with a competitive advantage. This requires research and time as you delve into
questions of brand loyalty, quality of product and pricing.
Improve Direct Marketing

Businesses must test to ensure that they are sending the appropriate message
to the appropriate households. They also must send this message at the appropriate
time using the appropriate media. Your communications must be spot-on, selling the
benefits of your product or service in such a way that a prospect becomes a paying
customer.
Increase Customer Loyalty

To increase customer loyalty, businesses must develop relationships with
customers, continually selling the value of the product in their situation. Never over
or under sell; instead, operate with integrity. Matching competitors’ prices,
developing special rewards for loyal customers -- such as a frequent purchase card
with discounts, priority service or personalized offers -- and referral programs are
effective avenues to increasing customer loyalty.
Make the Product Known
If you know your target customers, understand their needs and have
developed the perfect product, you have to get the word out. Using your knowledge
42
of your customers, you must communicate using the right channel. Using the
example of children’s clothing, you should advertise your business in parenting and
family magazines, on channels featuring children’s programming and in or near toy
and book stores.
Retailers are the last and vital members in the channel of distribution. The
retailer serves the manufacturer by providing his goods and services to the
consumers and creates a channel of information where customers’ feedback, their
expectations and points of dissatisfaction (if any) are shared with the manufacturer.
From customer’s point of view, the retailer’s main function is to provide
merchandise in the right quality, quantity, price, time, and at the right place.
4.3 Objectives of the study
1. Identifying Consumer Demands:

The first task that a retailer has to perform is to identify the consumer needs
and wants. The retailer does not provide raw materials, but offers finished goods and
services in a ready-to-use form that the consumers want. For this, from time-to-time,
retailer gathers information about consumers’ liking, disliking, tastes and
preferences.
2. Management of Merchandise:
The second task that a retailer performs is the management of merchandise.
The retailer performs the function of storing the merchandise and provides as and
when required by the customer.
3. Convenience of timing:
The retailer creates time utility by keeping the store open and ready for sale
according to consumers’ convenience. The new trend in retailing to longer trade
hours reflects the socio-cultural changes where over one in ten people work outside
43
normal hours resulting in changing trading hours and panacea for small retailers
against the cheaper prices of the super stores and other retail chains. By being
available at a location that has easy access and convenient to shop, retailer creates
place utility. Finally, when selected and bought by customers, retailers create
ownership utility.
In short, retailers are not only the final link between the consumers and the
manufacturers but a vital part of modern business world. In the absence of retailing,
one can easily imagine how difficult and costly for a consumer to approach a
manufacturer for various things every time he wants. Retailers do not sell things in
small quantities but make their shopping convenient and less risky.
Retailers have floor staff to answer their queries regarding how to use
effectively and safely, guide them what to buy according to individual preferences
and budget and give demonstration or display products so that the consumers should
have a feel of the merchandise before buying. The successful retailer focuses its
activities on meeting these objectives through effective marketing.
4.4 Methodology of the study
(1) Buying and Assembling:

A retailer deals in different variety of goods which he purchases from
different wholesalers for selling to the consumers.He tries to locate best and
economical source of the supply of goods.
(2) Warehousing or Storing:

After assembly of goods from different suppliers, the retailers preserve them
in stores and supply these goods to the consumers as and when required by them.
The goods are kept as reserve stocks in order to ensure uninterrupted supply to the
consumers.
44
(3) Selling:
The end objective of the retailer is to sell the goods to consumers. He
undertakes various methods to sell goods to the ultimate consumers.
(4) Credit Facilities:

He caters to the needs of the customers even by supplying them goods on
credit. He bears the risk of bad debts on account of non-payment of amount by the
customers.
(5) Risk Bearing:

A retailer has to bear different type of risks in relation to goods. While in
stores, goods are exposed to various risks like deterioration in quality, spoilage and
perishability etc. The products are confronted to natural risks viz; fire, flood,
earthquake and other natural calamities. Other type of risks like change in
customer’s tastes also adversely affects the sales.
(6) Grading and Packing:
The retailer grades the goods which are left ungraded by the manufacturers
and the wholesalers. He packs the goods in small packages and containers for the
convenience of the customers.
(7) Collection and Supply of Market Information:

The retailers are in direct touch with the consumers. They gather invaluable
information with regard to likes dislikes tastes and demands of the consumers and
pass on this information to the wholesalers and the producers which are very helpful
to them.
45
(8) Helps in Introducing New Products:
Without the services of retailers, new products cannot be introduced properly
in the market. This is so because a retailer has a direct link with the consumer. He
can explain nicely about the utility and the characteristics of a new product to the
customer.
(9) Window Display and Advertising:

The retailer displays the products in show windows in order to attract the
customers. This leads to immense publicity for the product.
4.5 Limitations of the study
On the other hand, the retail inventory method is only accurate if all pricing across
the board is the same and all pricing changes occur at the same rate. In most cases,
this is not realistic in retail because of the many variations that exist in merchandise
pricing. For example, depreciation, markdowns, product damage and theft can affect
the price of the retail inventory. For this reason, any calculations made using the
retail inventory method should serve only as an estimate.
Difficult to Sell To
Large retailers move enormous amounts of product each day. If your product
is an unknown, you're going to have a difficult time selling it to the biggest retailers.
Company.com explains that getting your product stocked at retail giants requires
you to have a track record of success. Large retailers only want items that consumers
are going to buy, and they don't need to take a risk on the unknown.
Lower Profit Margin
Retail giants have the advantage of enormous revenue figures. That allows
them to sell items for less than smaller retailers, but at a cost to companies that deal
with the retailer. Low-cost products at large retailers stem from several factors,
46
including low shipping costs and price manipulation. A large retailer can essentially
tell a manufacturer, "We'll buy your product at this price only." The price the retailer
sets often results in a lower-than-average profit margin for the manufacturer, which
enables the retailer to sell the product for less than smaller retailers. The
manufacturer must then hope that it can sell the product in bulk to make up for the
lower-than-usual profit margin. A failure to move large amounts of the product can
result in diminishing profits.
Impersonal
Dealing with retail giants is similar to dealing with a large international bank
in that the communication is impersonal. The retailer may decide to stop stocking
your product at any time and without anything more than a quick phone call or letter
informing you of the decision. A smaller retailer is more likely to work with you and
exercise greater patience. In addition, a large retailer has so many manufacturers
vying for its shelves that it may not take steps to ensure you're well taken care of. It's
not a big deal to the retailer if it loses you as a manufacturer. A smaller retailer
likely only has a handful of manufacturers to deal with and is more likely to
maintain a solid relationship with you.
47
CHAPTER-05
DATA ANALYSIS AND

INTERPRETATION
48
ANALYSIS AND INTERPRETATION
In this chapter we will look upon the distribution of edible oil on the basis of brand,
age, income, awareness, frequency of usage and spot preference with the help of
tables and bar graphs.
5.1Brand wise distribution of edible oils
Brand Number of people Percentage (%)

Sundrop oil 8 18.2
Patanjali refined oil 5 11.3
Emami (Sunflower oil) 11 25
Saffola refined oil 9 20.5
Fortune refined oil 7 15.9
Others 4 9.1
Total 44 100
Brand
12
10
0
sundrop patanjali emami saffola fortune others
49
5.2 Income wise distribution of households consuming edible oils
Monthly income range Number of people Percentage (%)

(Rs.)
Below 10,000 6 13.6
10,000-20,000 9 20.5
20,000-30,000 10 22.7
30,000-40,000 12 27.3
Above 40,000 7 15.9
Total 44 100
income
14
12
10
0
<10,000 10k-20k 20k-30k 30k-40k >40,000
People with income range between 30,000 to 40,000 preferred to buy edible oil the
most as compared to any other income range.
50
5.3 Age wise distribution of consumers of edible oil
Age Number of people Percentage (%)
Below 10 2 4.5
10-20 13 29.5
20-30 10 22.7
30-40 8 18.2
40-50 6 13.6
Above 50 5 11.5
Total 44 100
age
14
12
10
0
<10 10-20- 20-30 30-40 40-50 >50
The age group between 10-20 years of age consumed the maximum percentage of
edible oil in comparison to other age groups.
51
5.4 Frequency of consuming edible oil in a week
Frequency of consumption Number of people Percentage (%)
Everyday 34 77.3
3-4 times a week 9 20.5
1-2 times a week 1 2.2
Total 44 100
consumming frequency
40
35
30
25
20
15
10
0
everyday 3-4 times a week 1-2 times a week
Every household in the country consumes edible oil in one way or the other on
almost every day of the week.
52
5.5 Consumer’s awareness towards ingredients , net weight, expiry date, nutritional
benefits of edible oil
Particulars Number of people Percentage (%)
Known 32 72.7
Not Known 12 27.3
Total 44 100
awarness
35
30
25
20
15
10
0
Known Not Known
Due to the development and increase in literacy rate in the country , the people of the
country have now started to know about everything , like in this case maximum
people were aware about the ingredients, net weight, expiry date and nutritional
benefits of the edible oil that they used.
53
5.6 Spot Preference for buying edible oil by consumers
Particulars Number of people Percentage (%)
Mall/ Super markets 16 36.4
Retailers 23 52.3
Whole sellers 5 11.3
Directly from oil mill 0 0
Total 44 100
spot preference
25
20
15
10
0
mall/super market retailers whole sellers oil mill
Many of the people prefer to buy respective edible oil from the nearby retail shops or
from super markets.
54
Chapter – 06
conclusion AND
RECOMMENDATIONS
55
6.1 Conclusion
In this course we have explored the meaning of the terms retailing, marketing
and marketing communications. We have also considered the importance of the
marketing mix and identified the different communication tools that a retailer might
use to interact and communicate with their target customers. You have been
introduced to a few theoretical concepts and ideas, which have been illustrated using
real world examples and cases in retailing.
You have been introduced to some of the key areas of marketing

communications – how to use communications to build a brand and the
characteristics of the different media that might carry marketing communications. In
addition, you have identified a range of communication tools which make up the
marketing communication mix.
The course has also aimed to introduce the importance of marketing and
communication from a retail perspective.
Retailing has become large-scale, concentrated, centralised and sophisticated.

Retailers are well down the track of seizing value-chain power. The next major
challenge and opportunity for retailers is the development of strong retail brands,
that generate long-run consumer preference and loyalty and create sustainable
differentiation between direct retail competitors. The current status of retail brand
development, and the future potential for brand-building, varies widely across
countries and retail sectors. Strong retail brands are most advanced in the UK,
including possibly the world's strongest brand in product retailing, M&S. Are Retail
Brands Different from Producer Brands? We can see today that strong brands can be
established in retailing. Internationally, many examples can be found in repertoire
and service retailing. The UK gives us examples of strong brands in the grocery
sector. Examples in the proximity and category killer sectors are harder to find, but
56
we can point to Boots in the UK and Decathlon in France. Retail brands clearly can
become 'The Real Thing'6.2 Suggestion
The organisation has to maintain the organisational flexibility that allows the
organisational changes with undue resistance . Skilled personnel are needed to
provide prompt and courteous attention to customers and to improve the new sales
techniques . Retailers have to employ new differentiation strategies rather than try to
compete against mass merchandisers on the basis of price . To Compete with
international brands more concentration to be given for quality . Infrastructure
development is needed . More personalised service to be give to the customers .
Good relation to be maintained with local communities . Extra benefits should be
offered to the customers “ like free of cost alterations , drop at the door step facility
should be provided to the customers . SMS and ads about new offers in the store for
new stock and new arrivals of products should be made. Extensive advertisements in
the news papers is necessary . Hoardings , posters , banners and wall paintings can
be put on areas so that it covers the population of the whole town . Large centralised
retail businesses have their own lines of manufacture , distribution and retail outlets.
In addition , the multinational retailers are enjoying with an opportunity of tariff
reduction . Thus , they can sell all varieties of products and have lower cost due to
the use of technology . Thus , proper use of the techniques available should be made
with proper strategies and planning to sell more products and provide customer
satisfaction and services.
6.3 Recommendations
Looking at the present world scenario and economy these are some of the
suggestions:
1. Planning committee
As the number of competitors are increasing and even produce aluminium with
cost lower than Nalco. So, for maintaining its prominence in the aluminium
57
world as industry producing lowest cost aluminium a committee making
proper planning and different strategies should be formed only for procurement
of materials keeping in mind the inventory.
2. Proper planning
From the study we learned that inventory in FY 08 has increased due to
various macro-economic factors discussed earlier. Precise and better
forecasting should be done not only about the aluminium industry but also
about the world economy. Thus, maintaining low inventory and supplying
right amount of materials for production.
3. Making better use of Selective Techniques

We have seen that through selective control techniques stores can dispose the
non-moving items which are increasing inventory but this process does not
eliminate all non-moving items. So, selective control techniques should be
better used so that most of the non-moving items are disposed of immediately.
Other selective control techniques such as VED can also be used.
4. Improving the inventory control techniques for spares
Spares such as mechanical, electrical, instrumentation spares are the materials

which are one of the reasons for high inventory as these are either slow moving
or non-moving items. Thus, inventory control techniques should be used for
spares and better planning for procurement and storing should be made.
5. Revision of AP items
Automatic procurement items are fast moving but duplicate indent may cause
high inventory. Thus, company should review the AP list from time to time
and check the list precisely for double indent.
58
BIBLIOGRAPHY
BOOKS:
JAIN, S.P. & NARANG, K.L(2004), Cost & Management Accounting, Material
Control, chapter-3, p - 50-75.
PANDEY, I.M., Financial Management, Inventory Management, chapter-29.
WEBSITES:
http://download.microsoft.com/download/6/D/1/6D1D1250 D92B 4B8F 9AA3

596422D3F614/edible oil_FactSheet.pdf
http://www.sundroprefinedoil.com/economic order quantity.htm
http://www.edibleoilhistory.com/inflation eoq.htm
http://www.fortunerefinedoil.com/safety stock.htm
http://www.saffolasunfloweroil.com/reorder point formula.htm
http://www.emamirefinedoil.com/stock level system.htm
http://download.microsoft.com/download/1/8/6/18645A04 E36D 40F4 9C7A
http://www.marketingstrategy.com/detail.asp?date=3/26/2009&story=2
http://www.indiabiznews.com/biznews/categoryNewsDesc.jsp?catId=16029
http://www.patanjalioil.co.in/grabglo.asp
http://www.hinduonnet.com/businessline/iw/2001/04/29/stories/0529e051.htm
http://www.retailmarket.co.in/report0108.pdf
http://www.indiamarket.com/about_us/
59
Questionnaires
Name : ________________________
Age : ________________________
Income : ________________________
Occupation : ________________________
Educational qualification : ________________________
Research profile
1. Which brand of edible oil do you use regularly ?
2. What is your duration towards purchase of edible oil ?
3. Are u aware about the net weight , expiry date, nutritional benefits of the brand
you use ?
4. Basically what quality or brand of oil you like to purchase from shops ?
5. Which kind of shop you prefer to buy your products from ?
6. How much percentage of your income are you spending per a month on edible
oil ?
7. Are you satisfied about the quality and price of oil you use ?
8. What is your level of satisfaction towards the brand you use ?
60

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CUSTOMER PREFERENCES AND PERCEPTION TOWARDS EDIBLE OIL

Khallikote Auto. College (2017-2020)

Khallikote Auto. College (2017-2020)

Secondly, I would like to bestow my gratitude to Khallikote

Last but not the least, I am so thankful to my friends, parents and

Khallikote Auto. College (2017-2020)

CHAPTER NO. TITLE PAGE NO.

LIST OF TABLES AND GRAPHS

SN NO. TITLE PAGE NO.

Khallikote Auto. College (2017-2020)

Company Established: 1986

Company Established: 2006

Companu Established: 1974

Company Founder: Radhe Shyam Agarwal

Company CEO: Naresh Bhansali

Company Established: 1990

Company Founder: Harsh Mariwala

Company CEO : Saugata Gupta

Company Established: 2000

The Edible Oils Market in India

Through technological means such as refining, bleaching and de-odorisation,

Scheme for Distribution of Subsidised Imported edible oils

The Indian Scenario of Edible oil

2.3 Objectives & Development Policy of Edible Oils

Growing use of edible oils in recent years

• Dependence on vagaries of monsoon .The annual oilseed production of the country

Availability of raw materials for edible oil production

Consumer BEHAVIOUR AND

Keep Display Focused

Create Experience Shop

Use the Internet

Marketing Mix (4 P’s):

The Four Ps Revisited: Customer-Oriented Retail Marketing

In recent years, to address the need of taking a more customer-oriented approach to

Communication (versus Promotion): Communications including a range of efforts

Communication Strategy- Reaching out to the customers in their own language

Organizes major Promotional Events from time to time

Organises Local Festivals

E.g. Durga Puja in Kolkata, Onam in South and Dhanteras in North.

Shoppers Stop follows Premium Pricing Strategy that includes selling of

Many retail shops Exudes Class, Comfort, Convenience where ever it is

It refers to a co-ordinated communications program that is customer focused

Sales promotion includes all forms of sponsored communication apart from

Publicity is gaining public visibility or awareness for a product, service or your

4.1 Importance of the study

1. Embrace category management: All retailers must ensure superb category

4. Understanding Key Performance Indicators (KPI's): There are many KPI's in

5. Merchandise Financial Planning (MFP): This is often referred to as Open to Buy

4.2 Scope of the study

Understand Your Customer

A primary goal of retail marketing is understanding the connections between

Improve Direct Marketing

Increase Customer Loyalty

Make the Product Known

4.3 Objectives of the study

1. Identifying Consumer Demands:

4.4 Methodology of the study

(1) Buying and Assembling:

(2) Warehousing or Storing:

(4) Credit Facilities:

(5) Risk Bearing:

(6) Grading and Packing:

(7) Collection and Supply of Market Information:

(9) Window Display and Advertising: