Buying Preferences of Edible Oil in Ahmedabad Essay

A SUMMER INTERNSHIP REPORT ON (Consumer Preference and Buying Behavior towards Edible Oil) Submitted to L. J. Institute of Engineering and Technology In requirement of partial fulfillment of Master’s of Business Administration (MBA) 2 year full time Program of Gujarat Technological University Submitted on: 14th July 20___ Submitted by: Student’s Name Batch No. : 20__ – __ Acknowledgment

Here, I take this opportunity to humbly express my gratitude to all those concerned with my project entitled “CUSTOMER PREFRENCE & BUYING BEHAVIOUR TOWARDS EDIBEL OIL”. I would like to share the success of my project amongst the persons who has directly or indirectly helped me to complete this project. I first of all thank One Advertising & Communications Services Ltd for giving me the wonderful opportunity to undertake the venture.

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I would specially thank Mr. Jagan Dave for guiding me throughout the project and the report so as to make the study meaningful. I would also extend my gratitude towards L. J institute of engineering and technology and its director, Dr P. K Mehta, Dr Priyanka Pathak and the entire faculty who have been a constant source of inspiration, which ultimately leads to the point of success. Table of Contents |Serial No. Chapter Title |Page No | |1 |Executive Summary and Recommendations |4 | |2 |Introduction to project |5 | |3 |Literature review and study of industry |17 | |4 |Objective/Problem statement |23 | |5 |Research methodology |25 | |6 |Data analysis and interpretation |34 | |7 |Conclusions and Recommendations |50 | |8 |Limitations of study |51 | |9 |Notes and references |52 | |10 |Annexures |53 | EXECUTIVE SUMMARY This study is concerned with the preference and buying behavior of the consumers towards edible oil. As students of human behavior we are concerned with understanding consumer behavior with gaining into why individuals act in certain consumption related ways with learning what internal/external influences impel them to act to do so. A survey was carried out to check the consumer preference and buying behavior of consumers towards edible oil. The objective of the research was to know he consumer preference about edible oil and also the consumer perception and opinion for the product. The other major objective was to know which criteria consumer follow before they purchase oil. To fulfill the above objectives we prepared a questionnaire and surveyed 150 people and on basis of that data we came to know about the factors influencing consumer preference and consumer buying behavior towards edible oil. Chapter-1: Introduction to Project General Introduction: Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identical sponsor. Marketers see advertising as a part of an overall promotional strategy.

Other components of the promotional mix include Publicity, Public Relations, Personal Selling and Sales Promotion [pic] [pic] Advertising involves the process where in a message is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communications. From the newspaper, magazines, posters, neon & fluorescent signboards, billboards to commercials on t. v, laser shows to inflated high rise figures and objects, advertising has come a long way. The work is formidable as it spear heads a process intended to attract, modify, change and influences public opinion.

From the local business to multinational firms all need to advertise. While politicians, social organizations, government special groups need to advertise their motto, national airlines, automobile manufactures, food and consumers goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately male-shorts, hand bill circulations, special offer have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners etc advertising through electronic media has been perhaps the most popular medium.

Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors. ? Business or Organizations which wishes to advertise ? Media which provides medium for advertising ? Ad-agency which creates the ad to suit the need of the firm. [pic] [pic] [pic] Scenario in India TV advertising (especially in Hindi language) has made major head way in the past 10 years, especially with the advent of satellite tv.

TV channels- such as Zee TV, Sony TV have fashioned themselves on line of western channels, and most advertising on such channels is glitzy, smart and tailored for the middle classes. Such channels have forced the state owned channels, Doordarshan, to add spice to their programs which earlier were quiet drab. The importance of Hindi speaking market (which is also fluent in English) is borne out from the fact that Star TV, once an all English channel, is now rich in Hindi programs. Even the BBC is reportedly toying with the idea of airing Hindi programs. Most major international firms have chosen local Indian partners for their work in this market.

Mumbai remains the center of the advertising business in India. India has a diverse and growing number of daily newspapers. Since 1991, the increase of business and financial news report in English language and vernacular dailies has paralleled the economic reform programs and the movements of the stock markets. Most leading publications have their circulation audited by the Audit Bureau of Circulation which has an India dedicated office in Mumbai. In addition to advertising, other kinds of trade promotion activities are also well developed in India. A large of exhibitions is held all over India, the most prominent ones at Pragati Maidan in New Delhi. Conferences and seminars are also wide spread.

Profile of Major Advertising Mediums |Medium |Advantages |Limitations | |Newspapers |Flexibility, timeliness, good local |Short life, poor reproduction, quality. | | |market coverage, broad acceptance | | |Television |Combines sight, sound and motion, |High absolute cost, high clutter, fleeting exposure | | |appealing to the senses, high attention. | |Direct Mail |Audience selectivity, flexibility, no ad|Relatively high cost, junk mail image | | |competition with same medium | | |Radio |Mass use, high geographical and |Audio presentation only, lower attention than | | |demographic selectivity |television, fleeting exposure | |Magazines |High geographical and demographic |Long and purchase lead time, some waste circulation. | | |selectivity, credibility, and prestige. | |Outdoor |Flexibility, high repeat exposure, low |Limited audience selectivity, creative limitation | | |cost | | |Brouchers |Flexibility, full control |Overproduction could lead to run away costs | Advertising Agency Getting the best out of advertising is a highly skilled job. It requires the inputs of experts in many different fields like writers, artist, photographers, designers, production crew and many others. Even the biggest advertisers cannot afford to employ all these experts.

Almost all advertising is therefore arranged through an advertising agency which provides the necessary skill to turn the message into memorable and effective advertisement. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person who is connected with the Indian economy should be fully aware what advertising really is and how effective campaigns can be performed by full service advertising agencies. Advertising agency is one of the most important components of advertising industry. It has played a significant role in development of modern advertising. Advertising agency has evolved to provide the specialized knowledge, skills and experience needed to produce effective advertising campaign.

It provides a quality range of service greater than any single advertiser could afford or would need to employ. An advertising agency is a firm that specializes in the creation, design and placement of advertisements, and in the planning and execution of promotional campaigns for product and services of their clients. We can define advertising agency as, ”An independent business organization composed of creative and business people who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services. An advertising agency is service business dedicated to creating, planning and handling advertising for their clients.

An ad agency is independent from the client and provides an outside point of view to the effort of selling the client’s products and service. An agency can also handle overall marketing and branding strategies and sales promotion for its clients. Typical ad agency clients include businesses and corporations, non profit organization and government agencies. Agencies may be hired to produce single ads or more commonly on going series of related ads called an advertising campaign. Company Profile Name: One Advertising and Communications Services Ltd [pic] One advertising & communications ltd is located at three different places as shown below Corporate Office: 501, Avdesh House S. G. Highway, Opp. Gurudwara Ahmedabad: 380054, India

Branch Office: 202 Shreeji Avenue Opp. New India Mill Jetalpur Road, Alkapuri Baroda-390005, India Gala No. 33, Madhu Industrial Estate P. B. Marg Worli Mumbai: 400 013 This company is performing activities like know perception of peoples for particular brand or product and knowledge about the brand or product. On the basis of that they are doing advertisement through media, television, hoardings etc. For performing this activities there are different departments are there. First of all there are marketing department. They are directly contact with the client and accordingly them marketing department performing activities though copy and right department.

They are preparing final advertisement scheme or promotional scheme. Company Vision |’To provide total communication solutions to brand. ‘ | |A creative resource pool to clients and advertising to the consumer in a way never heard,| |read or seen before | [pic] Company mission |To provide total communications solutions for the brand.. | | |… at the Right Place, | | |    at the Right Time, | | |    at the Right Price | [pic] Company Approach |Business is just the survival of the fittest and| | |who knows it better than us ? | | |We believe in giving the best in all our | | |deliverables | | |A simple pre-briefing, a brainstorming session | | |or a massive media planning exercise… | [pic] Company Growth |Right people, right practices, right place and | |growth are integral to ONE | |In just four years, we’ve gone from a modest one | |client to an enviable client list that includes | |industrial giants | |Together, we have created a synergy of growth | |that in one word reads – “PHENOMENAL” | Company Talent ‘To encourage talent is to create it’- is the ONE policy | |We have recruited people with the right attitude and extraordinary talent | |From designing a press campaign or media buying, we have a team blessed with experience, dynamism and| |skills | [pic] Company Process [pic] Company’s Client [pic] Chapter 2: Study of Industry 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 per cent 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 / castorseed are the major traditionally cultivated oilseeds. Soyabean and sunflower have also assumed importance in recent years. Groundnut, soyabean 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, ricebran 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 unorganised. 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 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. Key Market Players and Brands: Major Market players: Edible Oils: • National Dairy Development Board (Anand) • ITC Agro-Tech (Secunderabad) Marico Industries (Mumbai) • Ahmed Mills (Mumbai) Vanaspathi: • Hindustan Lever (Mumbai) • Wipro (Bangalore) • Rasoi (Calcutta) • Avi Industries (Mumbai) Oil brands: • Sundrop • Dhara • Saffola • Sweekar • Postman Vanaspathi brands: • Dalda • Rath Consumption Pattern of Edible Oils in India India is a vast country and inhabitants of several of its regions have developed 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 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 ability 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 soyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and forest origin had found their way to the edible pool largely through vanaspati route. Of late, things have changed.

Through technological means such as refining, bleaching and de-odouraisation, all oils have been rendered practically colourless, odourless and tasteless and, therefore, have become easily interchangeable in the kitchen. Newer oils which were not known before have entered the kitchen, like those of cottonseed, sunflower, palm oil or its liquid fraction  (palmolein), soyabean and ricebran. 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. Major Features of Edible Oil Economy There are two major features, which have very 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, the oilseeds production went up to 27. 98 million tones in 2005-06 and was 24. 29 million tonnes during 2006-07 oil year. As per the 3rd advance estimate by Ministry of Agriculture dated 22. 4. 08 the production of nine major oilseeds is estimated to be about 28. 21 million tonnes during 2007-08.

The other dominant feature which has had significant impact on the present status of edible oilseeds/oil industry has been the programme of liberalisation under which the Government’s economic policy allowing greater freedom to the open market and encourages 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. [pic] [pic] [pic] [pic] [pic] [pic] Chapter 3: Research Objective/Research Problem Research Objective • To know the marketing feasibility and advertisement strategy for the edible oil brands. • To know the consumer preference about edible oil. • To study the consumers’ perception and opinion for the product. To know which criteria consumers follow before they purchase oil. • Qualitative and Quantitative analysis of the purchasing behavior of the people. Research problem • To find out the consumer’s awareness and perception about edible oil. • To understand the factor behind consumer preference for such product. Statement of the problem Problem definition is the foundation of any market research programe. Without knowing the problem area any research cannot be started. Problems are framed in questions about relationship that can be tested. Consumer and consumer’s purchasing behavior are the focus of marketing, unlike selling where a product, production, or sales orientation exists.

Hence, it is imperative for a marketer to thoroughly understand the consumers, to be a successful marketer. An Indian consumer is quite different from consumers elsewhere, but the diversity present within India is more compared to consumers elsewhere. Every Indian market is a fast developing market so there is always a fierce competition in an industry. The skewness that exist in incomes, languages, culture, sub-culture makes it a Herculean task to typify an Indian consumer. Similarly, it is very difficult for an edible oil company to make its customers a loyal consumer of its brand. Chapter 4: Research Methodology DEFINING THE PROBLEM AND RESEARCH OBJECTIVE DEVELOP THE RESEARCH PLAN COLLECTING THE INFORMATION ANALYZING THE INFORMATION

PRESENTING THE FINDINGS Research Methodology Research Objectives: • To know the consumer preference about edible oil. • To study the consumers’ perception and opinion for the product. • To know which criteria consumers follow before they purchase oil. • Qualitative and Quantitative analysis of the purchasing behavior of the people. Research Approach: • Exploratory: • Descriptive: Sampling: 1. Sampling Method: Non probability sampling and under it convenience sampling. 2. Sample Size: 150 3. Sample Unit: The population for the present studied is defined as “All the buyers from various areas of Gandhinagar and Ahmedabad cities”. Data Collection Method:

Primary Data: The primary data used for my study are questionnaires- containing questions regarding the consumer’s perception about the brands of edible oil. Secondary Data: Websites, Magazines, & Books. Chapter 5: Data Analysis & Interpretation 1) Which type of oil people use? Objective of Question: By questioning we were able to know the percentage of different types of oil people use regularly. [pic] Description of Chart: Groundnut is mostly preferred oil in households. While vegetable and coconut oil are most least preferred oil in households. Sunflower and cottonseed oil are the most preferred after groundnut oil. 2) Which brand oil people use regularly?

Objective of Question: By questioning we were able to know the percentage of different types of brands of oil people use regularly. |Name of Brand |Number of people using it |Percentage (%) | |Ankur |49 |32. 67 | |Saffola |10 |6. 67 | |Tirupati |19 |12. 67 | |Dhara |5 |3. 3 | |Fortune |9 |6 | |Rajmoti |6 |4 | |Sundrop |13 |8. 67 | |Gulab |25 |16. 67 | |Others |14 |9. 33 | |Total |150 |100 | [pic] Description of Chart: As you can see in the chart Ankur is mostly used brand of oil. ) Which brands are you aware of? Objective of Question: By this question we able to know that how many number of respondents are aware about different brands. |Brand |Number of people | |Saffola |136 | |Ankur |130 | |Sundrop |118 | |Sweekar |63 | |Tirupati |138 |Vimal |120 | |Raj moti |102 | |Fortune |122 | |Gulab |135 | |Sunpride |38 | |Dhara |120 | |Tirupate active |32 | |Out of |150 | [pic] Description of Chart: From the chart we can see that most of people are aware about the oil brands which advertise more. 4) On what basis do people select oil?

Objective of Question: To find out most attractive parameters the consumer prefer at the time of purchasing |Parameters |No of people |Percentage (%) | |Quality |30 |20 | |Price |24 |16 | |Taste |28 |18. 67 | |Availability |18 |12 | |Health |28 |18. 67 | |Offers |4 |2. 6 | |Freshness |18 |12 | |Total |150 |100 | [pic] Description of Chart: As per the chart consumer give their highest preference to quality while selecting the edible oil 5) Would you like to get any free gift or discount? Objective of Question: To find whether people give preference to the offers/schemes while purchasing oil? |Answer |Number |Percentage (%) | |Yes |116 |77. 3 | |Cash Discount |79 | | |Free Gift |37 | | |No |34 |22. 27 | |Total |150 |100 | [pic] Description of Chart: As per the opinion of the respondents 77. 73% people prefer offers while purchasing the edible oil. 6) What type of packaging do people prefer? Objective of Question: To find out which type of packaging is mostly preferred by people. Type of Pack |No of People |Percentage (%) | |Tin |99 |66 | |Bottle |22 |14. 67 | |Jar |25 |16. 67 | |Pouch |4 |2. 67 | |Total |150 |100 | [pic]

Description of Chart: From the above chart we can see that people mostly prefer tin type packaging. 7) Are you aware of tap packaging jar? |Answer |No of people |Percentage (%) | |Yes |66 |44 | |No |84 |56 | |Total |150 |100 | [pic]

Description of Chart: From chart we can say that only 44 % people are aware about the tap type packaging jar 8) Are you satisfied with oil that you are using? Objective of Question: To find out the level of satisfaction amongst the respondents |Level of Satisfaction |No of People |Percentage (%) | |Highly Satisfied |26 |17. 33 | |Satisfied |120 |80 | |Neutral |4 |2. 7 | |Total |150 |100 | [pic] Description of Chart: From chart we can say that about 80% of people are satisfied with the oil that they are using. 9) What change would you like in the oil that you are using? |Parameter |No of People |Percentage (%) | |Quality |15 |10 | |Price |70 |46. 7 | |Taste |09 |6 | |Packing |13 |8. 67 | |Any other change |02 |1. 33 | |No change |41 |27. 33 | |Total |150 |100 | Description of Chart: From chart we can say that 46. 67% people prefer the change in the price in the oil that they are using 10) Are you interested to change your oil? Answer |No of People |Percentage (%) | |Yes |20 |13. 33 | |No |130 |86. 67 | |Total |150 |100 | [pic] Description of Chart: We can say that around 89% people are not interested to change their current oil and they are satisfied with oil that they are using. 11) Which brand oil would you like to buy if you wanted to switch over? Brand |No of people |Percentage (%) | |Saffola |32 |21. 33 | |Sundrop |12 |8 | |Gulab |31 |20. 67 | |Ankur |13 |8. 67 | |Fortune |10 |6. 7 | |Tirupati |18 |12 | |Dhara |16 |10. 67 | |Rajmoti |10 |6. 67 | |Others |08 |5. 33 | |Total |150 |100 | [pic] 12) Have you seen any advertisement of any edible oil brand? Objective of Question: To find out the awareness, reach and impact of the advertisement amongst the respondents. Response |No of People |Percentage (%) | |Yes |110 |73. 33 | |No |40 |26. 67 | |Total |150 |100 | [pic] Description of Chart: From chart we can say that 73. 33% people have seen the advertisement of any oil brand. Brand |Television |Newspaper |Hoardings | |Saffola |44 |0 |1 | |Dhara |23 |0 |0 | |Tirupati |2 |3 |12 | |Fortune |4 |0 |0 | |Sundrop |8 |0 0 | |Ankur |1 |4 |1 | |Gulab |1 |1 |1 | |Rajmoti |1 |0 |1 | |Vimal |2 |0 |0 | |Total |86 |8 |16 | [pic] Chapter 6: Conclusions & Recommendations Conclusions: From this project we can conclude that • Groundnut is the most preferred type of edible oil. • Ankur is most preferred brand of edible oil. • People are mostly aware about the brands which are advertised on television, radio, hoardings, newspapers etc • Most of respondents give their first priority to the quality of edible oil while purchasing edible oil Respondents mostly prefer oil that are accompanied with some type of offers/ schemes • Respondents mostly prefer tin type of packaging • Around 80% of respondents are satisfied with the oil that they are using. • Around 73% of respondents are aware about the advertisements of any edible oil brands. Chapter 7: Limitations of Study Geographical Limitation: We have done this project only within Ahmedabad and Gandhinagar. Time Constraint: To do this project we had the time of one month only, so it was not possible for us to cover all aspects regarding the edible oil industry. Chapter 8: Notes & References Websites: www. google. com www. scribd. com www. oneadvt. com

Books: Philip Koteler & Kevin Lane Keller(2005) , “ Conducting Market Research & Forecasting Demand”, “Marketing Management ,Prentice –Hall India, 12th Edition, Pg No. 103-115 Visits: Retailer Shops Whole Sellers Shops Super Markets & Malls Chapter 9: Annexures Annexure 1: Questionnaire 1. Which type of oil do you use? ? Ground nut ? Vegetable ? Mustard ? Castor ? Coconut ? Sunflower ? Cottonseed ? Blended ? Corn oil ? Soya bean oil ? Olive Oil Reason: ____________________________________________________________ ____________________________________________________________ ________ 2. Which brand edible oil do you use? Brand Name: _______________ Reason: ______________________________________________________ 3. Which brand are you aware of? 1. __________ 2. __________ 3. ___________ 4.

Which brand are you aware of from the following brands? ? Saffola ? Sundrop ? Sweekar ? Tirupati ? Vimal ? Raj Moti ? Fortune ? Gulab ? Sunpride ? Dhara ? Tirupati Active 5. On what basis do you select oil? ? Quality ? Price ? Taste ? Availability ? Health ? Offers ? Freshness 6. Would you like to get any offers/free gifts on purchase of oil? Yes: ? Cash Discount: ? Free Gift: ? No: ? 7.

What type of packaging do you prefer? ? Tin ? Bottle ? Jar ? Pouch Are you aware of the Tap Packing Jar: ____________________________ 8. How often do you purchase oil? |Frequency | | |Amount/per 5kg | | |Who makes purchase | | |decision | | 9. Are you satisfied with oil that you are using? ? Highly Satisfied ? Satisfied ? Neutral ? Dissatisfied ? Highly Dissatisfied 10. What are the reasons to stick to the oil that you are using? ? Don’t like changes ? Satisfied with the product Any other: _________________________________ 11. What change would you like in the oil that you are using? ? Quality ? Price ? Taste ? Packing ? Any Other: ____________________ ? No Change 12. Are you interested to change your oil? Yes: ? No: ? 13. Which company’s oil would you like to buy if you wanted to switch over? Brand Name: ____________ 14. Have you seen any advertisement of any edible oil company? Yes: ? Which: ______________ Where: _________ No: ? Can you recall the message: ____________________ [pic] ———————– [pic] ———————– Project report on Customer Preference and Buying Behavior towards Edible oil


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