Edible Oil Refining

Project Study Report

“Analysis of Consumer Behavior for Edible Oils in Kota City with Special Reference of Saffola Oil, Marico Limited.”

Preface

Management of modern business requires an appreciation of multidisciplinary concept & in – depth knowledge of Specific analytical tools, geared to the solution to the real Life problems. No doubt every real situation is unique but a Set of theoretical tools of knowledge, is self – based on Empirical foundation can help in developing the mechanism for handling such situation. So the MBA curriculum has been desired to provide to the future manager ample Practical exposure to the business world. To survive, thrive and beat the competition in today’s brutally competitive world one has to manage the future, managing the future means managing information. This is what we learned in Master of Business Administration Course. Realizing that practical experience is as important as academic for all round development of management personnel and as a part of the course curriculum, an MBA student has to under go practical training. The major objective of this project is to make students familiar with the organization culture and practical work environment. Moreover, it also provides in depth knowledge of the topic assigned to them and links the theoretical inputs and their practical applications which are essential to keep pace with the dynamic environment. In this regard, I have completed my project at Marico Limited Kota. I did the research on “Analysis of Consumer Behavior for Edible Oils in Kota City with Special Reference of Saffola Oil, Marico Limited” which is a crucial activity in every organization. It is difficult to say that to what extent this report will actually help in formulating the policies and strategies by the management but it will definitely provide some basis for important financial as well as planning decisions. EXECUTIVE SUMMARY

My project includes a feedback survey on the following training programmes held in Marico Limited.

“Analysis of Consumer Behavior for Edible Oils in Kota City with Special Reference of Saffola Oil, Marico Limited”

Marico Industries has its focus on sustainable profitable growth is manifest through its consistent financial performance – a CAGR of 19% in Turnover and 19% in Profits over the past 5 years- while setting a record of several consecutive quarters of year on year growth- 30 for Profits and 26 for Sales, and distributing dividends for 25 consecutive quarters. Marico is a listed company its shares are listed in BSE and NSE (Code “MARICO”).

Marico commit itself to improving the quality of people's lives in several parts of the world, through branded fast moving consumer products and services in Personal and Health Care sectors. The Overseas Sales franchise of Marico’s Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services.

In the Edible Oil segment Marico have four products which are –

 Saffola Gold  Saffola Kardi Oil  Saffola Tasty Blend  Sweekar

Edible oils, as an important item of consumption, have rightly acquired considerable importance all these days. Being an essential food item for general populace, its importance can be gauged from the fact that it is used all over the world, as a major source of Nutrition for the human beings. Oils are used in the form of raw oils, refined and vanaspathi constituting 15 to 20 per cent of the consumers monthly budget. In this context the productivity of edible oil has assumed vital relevance to the economy of the world in general and the country’s economy like India in particular. Besides, oil industry has become a major organized sector with over 100 units in operation all over the country providing direct or indirect employment to over a million people.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re- affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

The advanced learner’s dictionary of current English lays down the meaning or research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge.” Research methodology refers to the procedure used for report. In recommendation section, we give suggestion to the company. Content

• Declaration

• Preface

• Acknowledgement

• Executive Summary

Chapter Page Chapter name No. No. CHAPTER-1 1 Company Profile: Marico 1-30 Limited CHAPTER-2 31-59 2 Conceptual Framework

CHAPTER-3 60-61 3 Research Methodology CHAPTER-4 62-77 4 Data Analysis and Interpretations

CHAPTER-5 78 5 Conclusions

CHAPTER-6 79 6 Suggestions

• Bibliography

• Annexure

Chapter -1 Introduction to the Organization: Marico Limited

Company Profile

Marico is a leading Indian Group in Consumer Products and Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods generated during 2006-07 a Turnover of about Rs.15.6 billion (USD 380 Million). Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Kaya, Sundari, Aromatic, Fiancee and HairCode. Marico’s brands and their extensions occupy leadership positions with significant market shares in most categories. Marico is present in the Skin Care Services segment through Kaya Skin Clinics (48 in India and the Middle East), the Sundari range of Spa skin care products (in the USA & other countries) and also through a recently acquired nascent soap franchise (in India and Bangladesh) Mario’s own manufacturing facilities are located at Goa, Kanjikode, Jalgaon, Saswad, Pondicherry, Dehradun and Daman Supported by subcontracting units. Marico has presence in Bangladesh, other SAARC countries, the Middle East and Egypt. In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary with manufacturing facility at Mouchak, near Gazipur. The Overseas Sales franchise of Marico’s Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services.

Every month, over 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas.

Marico Industries has its focus on sustainable profitable growth is manifest through its consistent financial performance – a CAGR of 19% in Turnover and 19% in Profits over the past 5 years- while setting a record of several consecutive quarters of year on year growth- 30 for Profits and 26 for Sales, and distributing dividends for 25 consecutive quarters. Marico is an Listed company its shares are listed in BSE and NSE (Code “MARICO”).

Company’s Values Marico has a set of articulated values that were created at the inception of the organization, revisited and modified once in the year 1997 and lately in 2005, through the collective wisdom of Mariconians. The values since then have been an integral part of the working of all Mariconians.

OPPORTUNITY SEEKING

Opportunities lie all around us in the form of unstated needs of consumers, changes trends, attitudes & habits of people. Very often they are first visible, as weak signals and those who read them early on will gain an advantage over the rest. These signals need to be identified and converted to possibilities for business growth. Higher the number of opportunities converted, higher will be the growth options for our people. BIAS FOR ACTION

Bias for action is a preference for action over deep analysis. When action is the identity, much more is likely to get done in an organisation. In times where change happens at a rapid pace, an agility of mind is extremely important to keep winning. It is about the ability to move ahead inspite of doubt, of moving ahead even when 100% data is not available by using gut. It is however, not about rash actions without investing any time to think through or doing reasonable inquiry.

CONSUMER CENTRIC

The wealth of the company is created by the trust of its consumers. In the final analysis it is this trust that compensates us materially and intellectually. The consumer must therefore be the primary focus of all the efforts. Members and associates must design their output in ways that add value to the consumer. EXCELLENCE

Only organizations that set world-class standards, will survive in the future. We will focus on practices that encourage and sustain rising standards of performance and builds on the pool of our talented members. Members will be encouraged to continuously benchmark against the best and continuously strive to be better than the best.

INNOVATION

The future of the organization rests on the willingness to experiment, push in new and untested directions, and think in uncommon ways to take calculated risks. We innovate when we do something in ways that are distinctive/ pioneering and give dramatic results. Fear of failure should not be the reason to avoid trying something different or new. More often than not, we fear change because of the unpredictability of the outcome. Experimentation helps build predictability of results. It helps us stimulate an idea on a small scale, and learn about possible pitfalls before going the whole way. OPENNESS & TRANSPARENCY Openness is a value that helps build a culture of trust and synergy. It is only when there is trust that the culture can be apolitical, ideas can be exchanged freely without any fear and experimentation can flourish. It is also in this environment that people will feel free to build on each other and collectively we will achieve more than individual effort.

GLOBAL OUTLOOK

Becoming a global player requires a deep understanding of the global markets, ability to deal with people of diverse cultures and ability to compete effectively in those markets.

BOUNDARYLESSNESS

Boundary lessens, like openness helps build a culture where we can leverage the collective wisdom to get synergies. This is assuming higher degree of criticality in the world where it is difficult for one person to know all and the interdependency amongst functions is increasing. History of Company

A young man Kanji Moorarji 1857 set up a modest trade in spices

Birth of The Bombay Oil Industries 1948 Copra trading, crushing and refining of vegetable oils.

Divisionalisation:-

Consumer Products Division 1983 Fatty acids and Chemicals Division Spice Extracts Division

Restructuring - several companies 1990 Consumer Products Division becomes Marico.

Marico makes its maiden 1996 public issue COMPOSITION AND CATEGORY OF DIRECTORS OF MARICO LIMITED

NAME CATEGORY Mr. Harsh Mariwala Chairman & Managing Director (Promoter) Mr. Rajeev Bakshi Non-Executive and Independent Mr. Atul Choksey Non-Executive and Independent Mr. Nikhil Khattau Non-Executive and Independent Mr. Jacob Kurian Non-Executive and Independent Mr. Rajen Mariwala Non–Executive (Promoter) Ms. Hema Ravichandar Non-Executive and Independent Mr. Bipin Shah Non-Executive and Independent Mr. Anand Kripalu Non-Executive and Independent The various brands of Marico limited and the respective categories is as follows

Marico’s brands enjoy leadership in many categories Marico’s Direction

Marico commit itself to improving the quality of people's lives in several parts of the world, through branded fast moving consumer products and services in Personal and Health Care sectors.

Company shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on the goodness of coconut, other natural substances and the underlying science of hair care and skin care. We shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services.

Company shall develop, in parts of the world beyond the Indian Subcontinent, a franchise for our branded products and services. Marico shall aim to be a leader in each of its businesses segment through heightened sensitivity to consumer needs, setting up of new standards in the delivery and quality of products and services and processes of continuous learning and improvement.

We shall share our prosperity amongst members, shareholders and associates, who contribute in improving our equity and market value. Company shall acquire the stature of a friendly corporate citizen, contributing to the betterment of neighborhood communities, where we are significantly present.

Marico India is very old Company; it has great presence in hair oil and edible oil segment. Company change itself a lot from its past. Companies improve its revenue and increase its profitability. To understand how far Marico has come, all one need to do is take a look at what they have inherited. MARICO TODAY (2009) MARICO YESTERDAY (1991) A sales turnover of Rs. 1059 million A sales turnover of Rs. 15600 million Profit after tax of Rs. 24 million Profit after tax of Rs. 701 million Net worth of Rs.33 million Net worth of Rs.2169 million(in 2005) Two products with brand names - 12 Brands, 3 of which are Market Parachute and Saffola Leaders Two factories - a coconut oil plant at 7 Factories and sub - contract Sewree, Bombay and a safflower facilities refining plant (which has been shut down since) at Mazgaon, Bombay. Around 400 employees representing A total strength of around 1000 the blue collared work force, staff and members managers.

Growing Consumer Franchise

Leveraging core sources of Competitive Advantage, Branding, Distribution, Cost Management and Innovation. Marico has set up a fast growing franchise of new products and businesses. An enviable record of 5 consecutive new product success stories. Parachute Jasmine, Shanti Amla, Mediker Anti Lice Oil, Saffola Gold and Saffola Tasty Blend. This has helped in reducing Marico's dependence on Parachute from a share of about 75% in early 90's to about 44%.

Brands Category 1992 2008(%) (%) Parachute & Oil of Coconut Oil 48- 59-60 Malabar 49 Saffola & Sweekar High Margin 5-6 13-14 Refined Oils in consumer packs Parachute Jasmine, Hair oils 17 19 Shanti, Hair & Care

Marico's Parachute and Saffola are among India's Top 100 Most Trusted Brands (Brand Equity survey). Among Indian brands Parachute ranks 46th and Saffola ranks 92nd. Parachute is probably the worlds largest packaged Coconut Oil Brand that makes use of one out of every twenty coconuts produced in India and 3 nuts of every coconut tree in India.

Marketing Channels: an introduction

‘Place’ or distribution is not just about availability of products, it’s a package of several components. These components have to be decided after a thorough study because most decisions involve a long term commitment of resources. A substantial part of an organizations’ finished goods inventory (and thereby working capital) is locked up in the distribution chain.

Channels: An organization has to decide which channels it will use to reach its product to the end customer. Choices vary from a fully owned & operated channel to a complete dependence on independent distributors – and several options midway between these two. For example, a company like HLL uses a distributor to wholesaler to retailer model while a Eureka Forbes uses its own sales force for direct selling; P&G adopts a policy in which they delegate their whole distribution work in state to a state level distributor who adopts Golden eye policy to cater to market that area.

Coverage Every market is divided into different segments based on its geographical, demographic etc conditions. So market coverage requires keen understanding of all the parameters affecting market division. It may not be possible for an organization to cover all segments, at the same time effective coverage policy need to be applied based on market parameters. There may be cases in which single policy for all the market segments is not effective, in such conditions market specific policy need to be applied. So it’s the marketer who has to decide which segment to serve in which geographic area with a suitable coverage policy.

Assortment Most of the company has large product portfolio to cater different need of different customer based on consumer taste and preferences. These many varieties of products are needed to target different markets based on geographic and demographic condition. So, it is not possible, some times not necessary for a company to provide full range of products at every distribution point. In such condition company has to decide product range for the market. A thorough analysis of market trend, customer needs and available resources plays a very important role.

Location Customer is another end of this whole distribution chain and he is the final target of this whole system, so any strategy will not give its best results till products are not easily reachable to customer.

At the customer facing end of the distribution chain, location becomes most important. In retailing for example, the location of store is a key success factor. For example, most cities in India have a MG Road and most MG roads have a Bata store.

Inventory

Once the organization is successful in attracting the customer for purchasing the products, the hard work should not be lost because of shortage of stock. Therefore, inventory management has very much importance. At the point of sale there should be sufficient stock of products to fulfill requirements of the customer. Companies have to do regular supply products according to demand. In case of FMCG market there is an utter need of a good Inventory Management System because of number of products, number of market trends, and competition of other players. Transport

A marketer has to decide the best way to transport the material from the point of stocking to delivery to the customer. For example, the buyer of a 25 inch colour television will expect home delivery and installation from the company distributor/reseller. If this service is not available then the customer may be unsatisfied and may prefer to buy a competing brand.

The above components of marketing channels play a major role in capturing a market and sustaining the share. The way the finished products are moved from the company factory to the end-user (consumer) varies from one company to that of another .The companies look for the best channel by which they can reach the consumer on–time when it is demanded by the consumer without fail.

Marico’s Distribution Network

Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverageable strength. Every month, 56 million consumer packs are sold to about 1.8 million households through 1.6 million retail outlets spread across the country. Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below depicts Marico's distribution network in the urban & rural markets: Thus, 1 out of every 10 Indians is a Marico consumer. Distribution Alliance

Our distribution strength has been recognized by Indo Nissin Foods Ltd. through their association with us for the distribution of Top Ramen products on a national basis.

Rural Sales & Distribution:

Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's top line.

Marico’s infrastructure comprises 882 direct distributors, 153 super distributors, catering to 2393 small stockiest and 4523 van markets.

A team of Territory Sales Executives and Pilot Sales Representatives cover his respective areas to handle sales of particular area. 1 out of every 10 Indians is a Marico consumer.

The chart below depicts Marico's distribution network in the urban & rural markets

CHANNEL FLOW

Flow of Goods

The following figure shows the physical movement of goods from the company to the end-user (consumer)

Physical Flow of Goods

Super Stockist Stockist

• Supplier Manufacturer C & F Distributor Retailer Consumer Agent

Wholesaler

C&F agent - Carrying & Forwarding agent

Flow of Money:-

The money follows exactly the opposite direction. The consumer pays the retailer for the product that he buys. The retailer gives routes the money to the redistribution stockiest. This transaction can either be a cash transaction or a bank can be involved. The company mandates the redistribution stockiest to involve a bank by accepting only chaque payments from the retailers but the norm is compromised in actual practice.

Flow of Money

Retailer/who lesaler/kiosk/ Company Bank Distributor Bank modern Consumer trade outlet

From the manufacturing units the products are moved to a C&F warehouse. A C&F agent is the clearing and forwarding agent who stores the company’s goods on behalf of the company to cater to a region. PROFILE OF CHANNEL MEMBERS

1. C&F AGENTS

C&F (Clearing and Forwarding) agent is the agent who takes delivery of the goods from the various manufacturing facilities of the companies and in turn forwards them for distribution to the Distributors located at various locations. The role of the C&F agents is to simply take delivery of the goods from the manufacturing facilities that the various companies have at different locations across India and forward it to the Distributors/ Redistribution Stockiest. They are just the warehouses of the companies. They are given commissions for their handling of the goods. The C&F agents in turn have to see that the goods reach the next level of the channel that is the Distributors/ Redistribution Stockiest in time and safely. They also have to maintain the stock level and see that the distributor is maintaining their stock as per the norms of the Company.

Almost all the FMCG companies have their C&F agents in kota for their distribution in Rajasthan. The commissions vary from company to company as for example HLL gives 1% margin for the agent but MARICO in turn gives Rs.5 for each carton handled and it’s the same in the case of the other FMCG majors. The stock norms are maintained in some companies on a real time basis like in case of HLL it has software named UNIFY for the same. In case of MARICO they have software named MIDAS. The name of the software used by Nestle is CD Sprint. They all are the real time software’s by which the C&F agent can know the stock level maintained by the Distributor and vice versa. It also helps in ordering of the stock for the Distributor and the other channel members. 2. THE DISTRIBUTOR

A Distributor is the distribution channel member who buys goods from the Company in bulk regularly. They buy the products from the company and in turn deliver to the further channel members at their own cost. They have to maintain their own Sales force as well all other necessary infrastructure or the manpower necessary for them so that the goods pass on smoothly and in time to the customers at the POP.

The distributor in turn feeds the whole-sellers as well as the retailers, but only above a certain stipulated quantity of goods. The distributor does not supply small quantities, not less than a carton. Hence they supply the wholesalers and large retail outlets. The wholesalers feed the small retailers and the kiosks, which usually require small quantities of goods, generally less than a carton.

The efficiency of the Distributors can be judged by the ROI that they achiever or Return on Investment is the net profit that a Distributor saves for himself. It is determined by the total return divided by the total expenses. It takes into account all the expenses for a particular company including the cost of the stock norms that they have to maintain for a particular company. It also takes into account the rotation of the money made by the distributors, the working capital maintained and the credit policy given by the Company and their credit policy to their customers. It also takes into account the Manpower that they have to keep for the smooth functioning of the channel. In FMCG industry the healthy ROI is said to be anything between 18%-24%.A distributor reduces his ROI if he maintains a high credit period and his rotation of the working capital is very less. If the rotation is twice a month then the ROI is said to be 24%. This can be achieved by maintaining a credit period of 10-15 days.  Regarding Marico’s distribution channel in the products are supplied to the distributors on placement of order by the distributor. A distributor is typically expected to stock inventory required for a week. The orders are placed by an Internet enabled software application in case of Marico Limited, called the “MIDAS”. The distributor has his own salespersons and vehicles. He supplies the wholesalers and the large retailers. His salespeople visit the wholesalers and large retail points on a regular basis.

 The working of the Sales and Distribution network of other companies excluding Marico Limited employed by the different FMCG majors like HLL, Colgate- Palmolive, P&G are almost similar regarding urban distribution but for the difference in profit margin extended by the companies towards the various channel members.

 In case of Communication’s business players like Reliance and Airtel and the beverages majors like Pepsico and Coke the distributor directly supplies to all the retailers and the wholesaler has very little or no role to play.

 The Distributor is the most important channel member as he is the first point of sale for the company.

3. THE WHOLESALER:

The next major contributor is the wholesaler but the companies don’t consider the wholesaler as a separate channel member, rather they consider the wholesaler as a bigger retailer. Hence the wholesalers are considered along with the retailers. The wholesalers buy in bulk from the distributor and sell the goods to the kiosks and small retailers whose requirement is usually less with a very less margin (1- 2%). The wholesalers usually maintain stock keeping units (SKU) of almost each and every company. A typical wholesaler maintains nearly 1000 SKUs. The wholesalers tend to those retailers and kiosks that cannot be taken care by the distributor for that will affect his ROI .As the wholesalers play on a very low margin they take care that the movement of goods is very fast. Also they usually deal on a cash and carry policy, as giving credit will adversely affect their ROI. As seen from the graph above the wholesalers contribute to 40% of the business of the distributor. The Distributor usually gives 1 to 1.5% cash discount taken from his margin to the wholesaler. Marico measures the wholesaler performance by grade point system and rewards the best wholesalers. Marico runs wholesaler programs such as WMP (wholesaler Milan program) for urban wholesalers and FWP (Feeder wholesaler program) for rural wholesalers. The salesman of the distributor visits the wholesaler once a week according to beat plans for taking orders from the wholesaler and replenishes the wholesaler if needed.

4. Key Retail, Mass Retail and Kiosks:

These include the retail channels for Personal Care products under the General Trade category. Key Retail outlets are other large kirana shops which are not wholesalers. They too cater to residents largely and visitors and passerby’s. The average sale of these stores could vary between Rs 10000 per month and Rs 80000 per month. These again are serviced once or twice a week depending on the BPM and the company and the range of products it deals with. The mass retail outlets are typically serviced once a week and cater to the local populace. Their reach & ability to cater to the occasional customer mandate their existence. They generally stock those products which are in demand from the customers and have a good Consumer pull. The smaller SKU’s such as sachets are popular. The company replenishes the stocks on a fortnightly/ weekly basis and has little influence over the portfolio maintained by the retailers. These outlets are the largest in number and are key points for the company in terms of reaching the masses. These outlets are first and last point which came in contact with customers. These retailers get feedback from the customers about the product and forward it to DSR or Company authorize person.

5. Modern Trade Outlet:-

Now days the scenario of retail is changing. Organized sector is growing with a rapid pace. People have started to prefer purchasing from Modern Trade outlets. In these outlets people walk in and pick the product according to their choice and requirement. In India market share of these Modern Trades outlets is 3.5%. Many big companies have entered in this retail sector and many others MNCs are also interested to join the wagon of modern retail business. Reliance, Future Group, RPG is some of the existing retail player.Bharti-Wal Mart, Birla Group, Carrefour are queuing up for entering in this business.

5. RURAL DISTRIBUTION:

With some fair idea about the distribution system in the urban areas the understanding of the distribution system in place for rural distribution would be better. The study of rural market has become a buzzword for almost all the FMCG companies with urban markets getting saturated and general growth in rural income. The following data shows the growth in GDP as well as Agriculture in the past five years. The growth in agriculture in turn means increase in disposable income of the agrarian society. With India having nearly 70% of its population doing agriculture it means a great potential for the companies to sell their goods in these untapped markets. The dependence on monsoon rains for agriculture has also reduced by a significant proportion which augers well for the companies as the fluctuation in the disposable income of the rural society has reduced notably because of the continuous supply of water by the new motor pumps. The rural distribution channel starts from supplier and ends at the rural consumer. The two important channel members in this channel are the superstockist and the stockiest.

Super stockist Stockist

Supplier Manufacturer C & F Rural Retailer Consumer Agent

Wholesaler

The concept of a separate channel for the rural distribution is in place because each and every company in the FMCG sector has recognized that rural market is a huge market yet to be tapped.

6. SUPERSTOCKIST:

The superstockist is usually located in an urban area. He gets the goods from the C&F in bulk and feeds the stockiest according to their needs. The profit margin for the superstockist given by Marico is 2% and he gets a subsidy of 1% for taking care of repacking and salesman cost. According to Marico norms the superstockist should the goods only to the stockiest in the rural areas. Hence he gets 100% contribution to his sales from the stockiest. The superstockist has salesmen who regularly go on tour visiting the stockiest and getting orders for the goods. The superstockist usually deals with large quantities of goods supply as they have a very wide area to supply. The superstockist usually gets a credit period of 7 days from the company and gives a credit period of 10 – 15 days to the Stockiest.

7. STOCKIST:

The Stockist is the next member in the rural distribution network who caters to the rural retailers. He receives the goods from the superstockist (Rural distributor) and supplies to the retailers and wholesalers in the rural areas. He gets a profit margin of 4% from the company. He gets a credit period of 10 -15 days from the superstockist and gives a credit period of 15-25 days for the rural retailers and 1-2 days to the wholesalers. The Stockist usually caters to the town in which he is located although he is expected to supply to the nearby villages also. He usually employs cycle as the means of transportation to supply his retailers and wholesalers.

The role of Wholesaler and Retailer in rural area is same as it is in urban areas.

In the Edible Oil segment Marico have four products which are –

 Saffola Gold  Saffola Kardi Oil  Saffola Tasty Blend  Sweekar Dil Ko Rakhiye Jawan

Saffola Gold has the internationally proven formula of 70% Rice Bran Oil (RBO) and 30% of Safflower Oil (Kardi oil). This has also been proven effective in Indian research.

Saffola Gold is fortified with natural vitamin E (d - alpha tocopherol). Other oils are not fortified and therefore the Vitamin E content in them remains variable and depends on processing. Vitamin E helps to preserve the stability of oil, thereby increases its shelf-life. Vitamin E is known to play a role in immunity. Vitamin E is also amongst the established breed of antioxidants that helps retard aging and prevents heart disease.

Low Absorb Technology:

Saffola Gold is made through an exclusive protection technology called LoSorb that makes the oil more stable during deep-frying. No other oil or blend of oil in the country has this technology. When food is fried in Saffola Gold, there is lesser of the unhealthy degraded compounds formed. So if you're looking for a cooking oil to fry foods ,choose Saffola Gold.

Saffola Gold-heart-health

Major concern today is the occurrence of heart disease with every fourth Indian being under the threat. Common sense will always be an important part of a healthful diet - choosing a simple nutrient-dense, high-fibre diet that is low in saturated fat and salt with increased physical activity and better lifestyle will significantly reduce the incidence of this disease. And of course, adopting Saffola Gold as your family's cooking medium is one big step that you can take towards safeguarding your family's precious hearts.Saffola Gold has a unique Double action benefit.Helps reduce Cholesterol when accompanied witha healthylifestyle. Absorbs less into your food

More about Saffola’s ingredients

Rice Bran Oil (RBO):

Heart healthy nutrients in RBO such as tocotrienols and oryzanol are known for their cholesterol lowering ability. Besides, RBO also has a high percentage of monosaturated fatty acids, which have been proven to not only reduce the ‘bad’ LDL cholesterol levels but also increase the levels of ‘good’ HDL cholesterol in blood.

Safflower (Kardi) Oil:

Linoleic acid, an omega-6-polyunsaturated fatty acid, is present in a high percentage in safflower oil and helps reduce cholesterol levels.

Nature:

Saffola is made from the finest quality natural Kardi seeds.

Heart: Kardi oil has the highest amount of Polyunsaturated Fatty Acid amongst all vegetable oils. Saffola when taken as a part of a low saturated fat diet may help reduce cholesterol levels. Lowering of cholesterol is known to reduce the risk of heart disease.

Family:

It is recommended that a low saturated fat diet be followed from an early age. Saffola provides good health for the entire family including children.

Taste:

Saffola is healthy and also helps to bring out the natural taste of your food.

Saffola Tasty Blend is the first edible oil blend in the country. Saffola Tasty Blend was launched in the year 1998-99. Since then the Blend has been performing really well. Along with Saffola Nutri Blend, it has ensured continued availability of Saffola for its consumers at a time when Marico faced acute shortage of safflower, the main raw material for Saffola Brand. Both these blends have captured a market share of above 4% in the ROCP (Refined Oils in Consumer Packs) market and have helped Saffola hold on to its overall consumer franchise. Saffola’s ingredients This oil blend provides the benefits of two oils, thereby giving added value to the consumer. It provides the do-good properties of Kardi and the taste of Corn.

Saffola Tasty Blend's success :

The key to Saffola's growth has been its impactful advertising and the innovative marketing techniques, helping consumers experience a full health care service, not just a product. The 'Saffola Healthy Heart Foundation' was set up to provide a whole lot of additional services to enable consumers to take the required steps to improve their lives. Saffola Tasty Blend is a step in the evolution of the Saffola brand into value- added products and services in the area of health.

Aapke haath mumkin har baat

Sweekar is a national brand comprising of Refined Sunflower Oil. Sweekar has become synonymous with good quality light edible oil. It is positioned as a light and healthy cooking medium. The Sunflower category emerged in 1988 - 89 and Sweekar quickly became one of the leading brands in this category. The positioning of Sweekar has evolved over time- from the initial stand of lightness and 88% saturated, fat-free - to that of "Achcha Khana, hansi khushi ka Khazana" - to that of "Aapke haath mumkin har baat". It continues to be one of the leading brands among refined oils in the consumer packs market.

Sweekar Low Absorb Oil:

In its quest to provide higher value to its consumers, Marico launched Sweekar Low Absorb Oil - India 's first low absorb oil, during the third quarter of 2001-02. Food cooked in this absorbs less oil providing the consumers the twin benefits of health and economy. University Department of Chemical Technology (UDCT), an institute of international repute has verified the claim. The positioning of Sweekar as 88% saturated, fat-free oil with Low Absorb properties and the new look pista colors packs contributed to improved perception of the brand.

Consumers:

Sweekar's primary target has been housewives (age 25 +). The brand has caught on as a product that the best in the market. Chapter -2 Conceptual Framework Definitions of Consumer behaviour

Consumer behaviour is the study of when, why, how, and where people do or do not buy [[Product (business)|product) It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

CONSUMER BEHAVIOR IN INDIA

Introduction

India is a big country with 28 states, over one billion people and 120 dialects/languages.

From the market perspective, people of India comprise different segments of consumers, based on class, status, and income.

An important and recent development in India’s consumerism is the emergence of the rural market for several basic consumer goods. Three-fourths of India’s population lives in rural areas, and contribute one-third of the national income. This rural population is spread all over India, in close to 0.6 million villages.

India is a lucrative market even though the per capita income in India is low and it remains a huge market, even for costly products. Among the total 164.8 million households in India, 80.7 million households comes under low income group ( US$ 2465).

Characteristics of the Indian Consumer Behavior

The Indian consumers are noted for the high degree of value orientation. Such orientation to value has labeled Indians as one of the most discerning consumers in the world. Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market.

Indian consumers have a high degree of family orientation. This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accepted easily in the Indian market.

Indian consumers are also associated with values of nurturing, care and affection. These values are far more dominant that values of ambition and achievement. Product which communicate feelings and emotions gel with the Indian consumers.

Apart from psychology and economics, the role of history and tradition in shaping the Indian consumer behavior is quite unique. Perhaps, only in India, one sees traditional products along side modern products. For example, hair oils and tooth powder existing with shampoos and toothpaste.

Different Segments of Indian Consumers 1. The Socialites Socialites belong to the upper class. They prefer to shop in specialty stores, go to clubs on weekends, and spend a good amount on luxury goods. They are always looking for something different. They are the darlings of exclusive establishments. They go for high value, exclusive products. Socialites are also very brand conscious and would go only for the best known in the market.

2. The Conservatives The Conservatives belong to the middle class. The conservative segment is the reflection of the true Indian culture. They are traditional in their outlook, cautious in their approach towards purchases; spend more time with family than in partying and focus more on savings than spending. Slow in decision making, they seek a lot of information before making any purchase. They look for durability and functionality but at the same time is also image conscious.

They prefer high value consumer products, but often have to settle for the more affordable one. These habits in turn affect their purchasing habits where they are trying to go for the middle and upper middle level priced products.

3. The Working Women The working woman segment is the one, which has seen a tremendous growth in the late nineties. This segment has opened the floodgates for the Indian retailers. The working woman today has grown out of her long-standing image of being the homemaker. Today, she is rubbing shoulders with men, proving herself to be equally good, if not better. Working women have their own mind in decision to purchase the products that appeal to them. 4. India’s Rich India’s rich can be categorized into five major categories as follows:

5. The Rich The rich have income greater than US$11,000/- per annum. Total household having such incomes are 1,058,961. These people are upwardly mobile. Some of them in this category are Double Income No Kids (DINK) households. They spend more on leisure and entertainment-activities than on future looking investments. Across the category, backgrounds are distinctly middle class. They aspire, therefore, to attain the super-rich status.

6. The Super Rich The Super Rich have income greater than US$22,000/- per annum. Total number of households is 320,900. There are less DINK families here than in the rich category. The Super Rich are mainly professionals and devoted to consumerism. They buy many durables and are status conscious.

7. The Ultra Rich The Ultra Rich have income greater than US$44,000/- per annum. The number of households in this category is 98,289. There is no typical profile of the ultra- rich. There are some DINK households of middle-level executives. Some single earning households are of first generation entrepreneurs. Some rich farmers, who have been rich for a long time, belong to this category.

8. The Sheer Rich The Sheer Rich is made up by households having income exceeding US$110,000/- per annum. Such households are 20,863. They do not have a homogenous profile. There are joint families as well as nuclear families in this category. They consume services greatly. They own multiple cars and houses. They aspire to social status and power. 9. The Obscenely Rich The Obscenely Rich is made up of households having income exceeding US$222,000/- per annum. There are hardly 6,515 such households in India. They are first-generation entrepreneurs who have made it big. Some of them are techies. A variety of people belong to this category. They are just equivalent to the rich in the developed countries. They crave for exclusivity in what they buy. Most premium brands are relevant to them.

10. Rural Consumer About three quarters of the Indian population are in the rural areas and with the growing middle class, especially in the Indian cities; the spill over effect of the growing urban middle class is also felt in the rural areas.

The Indian rural market has been growing at 3-4% per annum, adding more than 1 million new consumers every year and now accounts for close to 50% of the volume consumption of fast-moving consumer goods (FMCG) in India. The market size of the fast moving consumer goods sector is projected to more than double to US$ 23.25 billion by 2010 from the present US$ 11.16 billion. As a result, it is becoming an important market place for fast moving consumer goods as well as consumer durables.

Increasing Awareness of Indian Consumers Over the years, as a result of the increasing literacy in the country, exposure to the west, satellite television, foreign magazines and newspapers, there is a significant increase of consumer awareness among the Indians.

Today more and more consumers are selective on the quality of the products/services.

This awareness has made the Indian consumers seek more and more reliable sources for purchases such as organized retail chains that have a corporate background and where the accountability is more pronounced. The consumer also seeks to purchase from a place where his/her feedback is more valued. Indian consumers are now more aware and discerning, and are knowledgeable about technology, products and the market and are beginning to demand benefits beyond just availability of a range of products that came from ‘trusted’ manufacturers.

The Indian consumers are price sensitive and prefer to buy value for money products.

Marketing Strategies

Online Marketing

A study by the Confederation of Indian Industry (CII) and the International Trade Centre predicts that e-commerce activity in India will rise from US$ 0.10 million in 2000-01 to US$ 5.8 billion in 2005-06, of which the business to business segment will account for US$ 5.41 billion.

Currently, the products Indian consumers are buying through online are greeting cards, clothes, CDs/VCDs/DVDs, cassettes, books, magazines, medicine and educational material.

The popular online shops in India include:

• www.ebay.in • www.shopping.rediff.com • www.reliablegreetings.com • www.shopping.expomarkets.com

Celebrity Influence This is an important tool which is able to influence Indian consumer buying behaviour. In India, celebrities are being increasingly used in marketing communication by marketers to lend personality to their products. With the visual media becoming more popular the use of celebrities in the TV media has increased. Celebrities create headlines. Their activities and movements are being closely watched and imitated. What they endorse sell like hot cakes. It is not surprising therefore that using celebrities in advertisements has become common practice.

In India especially, it is not difficult to look for the reasons as to why companies are increasingly using celebrities. Indians always love their heroes and heroines.

Consumers like advertisements more if they are admirers of the celebrities in the advertisements. When a consumer likes the celebrity in the advertisement, he or she is more likely to accept what the celebrity says about the advertised product and therefore will develop more positive feelings toward the advertisement and the brand itself. Famous celebrities are able to attract attention and retain attention by their mere presence in the advertisements.

In the midst of the advertisement clutter, the advertisements that celebrities endorse also achieve high recall rates. When people see their favoured reference group members or celebrities in the advertisements, they pay more attention to them.

Celebrities may also help reposition products. Products with sagging sales needs some boosting and in this Indian celebrities can help by way of they endorsing the product concerned.

Quality Oriented Outlets

Indian consumers looking for quality choose expensive brands as they feel that price is an indicator of quality. However, in the absence of well known brands in selected product range, consumers are likely to take cues from well established retail outlets hoping that these outlets carry quality products. Freebies

Indian consumer buying behaviour is influenced by freebies. Freebies are consumer products given free of charge as gifts to purchases of selected products above a certain value. TVs, washing machines, refrigerators, and ready made clothes are some of the product categories in which freebies are given to Indian consumers. Freebies generally comprise tooth paste, soaps, detergent, cooking oil etc.

.Eco-Friendly Products

The environmental awareness in India has started affecting marketing of products based upon their eco-friendliness. In general, Indian consumers are likely to buy environmentally responsible products and packs. The future key for marketing could be to select more ethical and ecological responsible products and packaging, which is also convenient for consumers, thus, balancing environmental concerns with commercial considerations. Consumers in India are taking lead in prompting manufacturers to adopt technologies to produce eco-friendly products.

Major Factors Influencing Consumer Behavior

Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural social, personal, and psychological factors. For the most part, they are “non controllable” by the marketer but must be taken in to account. We want to examine the influence of each factor on a buyer’s behavior.

Cultural Factors

In a diversified country like India cultural factors exert the broadest and deepest influence on consumer behavior; we will look at the role played by the buyer’s culture, subculture, and social class. Culture: Culture is the most fundamental determinant of a person’s wants and behavior. Whereas lower creatures are governed by instinct, human behavior is largely learned. The child growing up in a society leans a basic set of values, perceptions, preferences and behaviors through a process of socialization involving the family and other key institution .Thus a child growing up in America is exposed to the following values: Achievement and success, activity , efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness.

Subculture:

Each culture contain smaller group of subculture that provide more specific identification and socialization for its members. Four types of subculture can be distinguished .Nationality groups such as the Irish, polish, Italians, and Puerto Ricans are found with in large communities and exhibits distinct ethnic tastes and Jews represent subculture with specific culture preference and taboos.

Social Class:

Virtually all human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the member of different caste are reared for certain roles and cannot change their caste membership .More frequently, stratification takes the form of social classes.

Social Classes have several characteristics. First, Person with in each social class tend to behave more alike than persons from two different social classes. Second, persons are perceived as occupying inferior or superior positions according to their social class. Third, a person’s social class is indicated by a number of variables, such as occupation, income, wealth, education , and value orientation, rather than by any single variable , fourth, individuals are able to move from one social class to another up or down during their lifetime. The Extent of this mobility varies according to the rigidity of social stratification a given society.

Social Factors:

A consumer’s behavior is also influenced by social factors, such as the consumer’s reference group, family, and social roles and statuses.

Reference Group : A person’s behavior is strongly influenced by many group .A persons reference group are those groups that have a direct (face to face) or indirect influence on the person’s attitudes or behavior. Group having a direct influence on a person are called membership group. These are group to which the person belongs and interacts. Some are primary groups. With which there is fairly continuous interaction, such as family, friends, neighbors, and co-workers. Primary group tend to be informal. The person also belong to secondary group, which tend to be more formal and where there is less continuous interaction: they include religious organizations, professional associations, and trade unions.

Family Group:

Members of the buyer’s family can exercise a strong influence on the buyer’s behavior. We can distinguish between two families in the buyer’s life. The family of orientation consists of one’s parents. From parents a persons acquires an orientation towards religious, politics, and economics and a sense of personal ambitions, self –worth, and love. Even if the buyer no longer interacts very much with his or her parents, the parents influence on the unconscious behavior of the buyer can be significant. In countries where parents continue to live with their children, their influence can be substantial.

In case of expensive products and services, husband and wives engage in more joint decision making. The market needs to determine which member normally has the greater influence in the purchase of a particular products or services. Either the husband or the wife, or they have equal influence.

How to Succeed

Companies like Nokia, Reebok, Coke, PepsiCo and major automobile giants like Toyota, Suzuki, Ford, Chevrolet, Mercedes etc.. has made a market for themselves in India. How did they establish their own individual market in a country like India which is prone to diverse cultures? Let’s take the example of Ford. Before establishing their base in India, they engaged in a lot of researches. Their researches were made on the Indian people’s social life, personal tastes and preferences, way of life, how they identify an effective product and what makes them get attracted towards a product.

The general economy of India was also researched on. They had modified their product to suit the Indian conditions. Their technology had to be adjusted and suited to such an extent that their car is adaptable to Indian conditions. Indians are generally prone to be rough and tough customers and especially taking into account the road conditions and other social factors they designed the product in such a way that it’s best suited to the conditions and it’s received by the target customers. Today Ford is enjoying a huge market in India.

A customer’s want has to be identified and his expectations must be matched with the other economic and social factors so that their product is receptive. This can be related to any product. Reebok today is enjoying a huge market in India even though they have hired a company which is phoenix to manufacture shoes and operate under Reebok. How did they achieve this? Adapting to social conditions play the most important role in establishing your brand in the market.

This also means that customers are open to new and different products from time to time. It’s just that they want the product to be flexible and adaptable to their needs and preferences. People are changing from time to time, so do their tastes and preferences. Identifying those is the first step towards achieving success and the rest depends on the performance of the product.

Changing Trends in Indian Consumer Behaviour

Bulk Purchasing Urbanisation is taking place in India at a dramatic pace and is influencing the life style and buying behaviour of the consumers.

The working urbanites are depending more on fast and ready-to-serve food, they take less pain in traditional method of cooking and cleaning. Bulk purchases from hyper stores seems to be the trend these days with purchasing becoming more of a once-a-week affair, rather than frequent visits to the neighbourhood market/store/vendor.

The popular growing shopping trend among urbanities is purchasing from super markets to hyper stores. Trendy Lifestyles The current urban middle and upper class Indian consumer buying behaviour to a large extent has western influence. There is an increase in positive attitude towards western trends. The Indian consumer has become much more open- minded and experimental in his/her perspective. There is now an exponential growth of western trend reaching the Indian consumer by way of the media and Indians working abroad.

Foreign brands have gained wide consumer acceptance in India, they include items such as; • Beverages • Packed food • Ready to eat food • Pre-cooked food • Canned food • Personal care products • Audio/video products • Garment and apparel • Footwear • Sportswear • Toys • Gift items Foreign brands vie increasingly with domestic brands for the growing market in India. Foreign made furniture is well accepted by the Indian consumers. Malaysian, Chinese, Italian furniture are growing in popularity in India.

Indian consumers have also developed lifestyles which have emerged from changing attitudes and mind sets; exposure to western influences and a need for self-gratification. Beauty parlours in cities, eateries, designer wear, watches, hi- tech products are a few instances which reflect these changes.

Buyers’ Market in the Making The sellers’ market is slowly moving towards becoming the buyers’ market.

Since, India’s economic liberalization policies were initiated in 1991, many new product offerings have entered the Indian market and product variety has also increased manifold.

Import licensing restrictions are being eliminated and tariffs significantly reduced and this has led to large range of consumer goods made available in India.

Indian consumers have always preferred foreign goods and with the liberalization, they now have a choice of foreign products vis-à-vis the local products.

Consumer Spending Behaviour The Indian consumer spending has increased from US$ 133.60 in 1992-93 to US$ 350.74 in 2002-03, a compound annual growth of 10.13 per cent at current prices. The way Indian consumers are spending their money on various items has changed in recent years. The share being spent on the basis (food and beverages) has fallen from 54.07 per cent in 1992-93 to 44.8 per cent in 2002- 03. Other items have increased in importance, for example, medical and healthcare spending has increased from 3.5 per cent to 8.5 per cent of total expenditure over the same period, a compound growth rate of 19.71 per cent. Similarly spending on transport and communication has grown at 13.2 per cent.

While the Compound Annual Growth Rate (CAGR) in total consumer spending has been around 12 per cent a year over the past decade, there have been sharp ups and downs. Consumer expenditure has been in tandem with the annual GDP growth.

For rural India, per capita 30 days' consumer expenditure of US$ 12.34 was split up into US$ 6.78, on an average, for food, and US$ 5.56 for non-food. Food expenditure included US$ 2.25 for cereals and cereal substitutes, and US$ 2.37 for milk, milk products, vegetables, edible oil and US$ 2.16 on others. Non-food expenditure included US$ 1.11 for fuel and light, and another US$1.00 for clothing, footwear and US$3.45 on other non-food expenditure.

For the urban sector, average Monthly Per Capita Consumer Expenditure (MPCE) of US$ 23.53 was split up into US$ 10.00 for food and US$ 13.53 for non-food. Of food expenditure, US$ 2.37 went towards cereals and cereal substitutes while US$ 3.67 was spent on milk, milk products, vegetables and edible oil and US$3.96 on other food items. US$ 2.11 was spent per person per month on fuel and light, and US$ 1.65 on clothing and footwear and US$9.77 on other non-food items.

Urban expenditure levels per capita exceeded rural levels for all the product groups, except on cereals and cereal substitutes. The average monthly per capita expenditures on cereals and cereal substitutes for rural and urban areas are very close to each other.

The gap between rural and urban averages of MPCE was of the order of US$ 11.16. The item-groups viz. milk and milk products, beverages etc, fuel and light, education, miscellaneous consumer goods & services, conveyance and rent contributed to the gap significantly.

Non-food expenditure per person in the urban sector was more than double of that for the rural sector, where it was about US$ 5.55.

In India, the higher income group (>US$2,465) spends more amount of their income on luxury goods and trendy products than fact moving consumer products.

The middle income group (US$1,162 – US$1,190) spends more on consumer expendables than the rich.

Combined the middle and the lower income group provide 60 per cent of the value of the Indian market.

Edible oil consumption in India

India is a leading player in edible oils, being the world’s largest importer (ahead of the EU and China) and the world’s third-largest consumer (after China and the EU). Each year, India consumes over 10 million tonnes of edible oils. Edible oils have a high penetration of 90% in India. However, per capita consumption of edible oils is around 11 kg per year. This is considerably lower than in most developed countries. Palm oil (mainly imported) and soya bean oil account for almost half of total edible oil consumption in India, followed by mustard and groundnut oil. In India, most vegetable oil is purchased by household or industrial buyers (food processors, restaurants and hotels) for frying or baking needs and is sold as loose oil or vanaspati (partially hydrogenated vegetable oil). Only a small percentage of edible oils are sold in branded form at the retail level. Types of oils commonly in use in India in India consumer oil preferences vary from region to region because preference is based on local cultivations. portant amongst the plantation crops. Among the non- conventional oils, rice bran oil and cottonseed oil are the most important. Demand for edible oils Vegetable oil consumption in the country is continuously rising and has sharply increased in the last couple of years to roughly 11.2 kg/ head/year. This is still lower than the world average consumption level of 17.8 kg and that in neighboring countries like Pakistan (16.1 kg). The developed western world has a per capita consumption of 44 to 48 kg/year. According to projections from the National Council of Applied Economic Research (NCAER), per capita consumption of edible oils is likely to reach 13.95, 14.83 and 16.17 kg by 2009-2010 if per capita income grows by 4%, 5% and 6% respectively.

Consumption factors: 1. Per capita consumption of edible oil is low (11 kg) – but rising gradually; 2. Extreme variation in consumption. The country’s top 10% of the population consumes 20 kg per capita and the bottom 30%, less than 5 kg per capita; 3. Strong regional preference for ‘first press’ oils with natural flavour – mustard, groundnut, coconut oils; 4. Inadequate quality control and quality assurance mechanisms lead to adulteration; 5. Antiquated food laws and poor implementation; 6. Low depth liquidity in futures markets; 7. Erosion of self-reliance in edible oils and rising dependence on imports. Imports currently constitute 45% of aggregate consumption.

Demand drivers for edible oil consumption: GDP growth and rising Income India is the fourth-largest economy in the world and the fastest-growing significant economy with an average GDP of 6%. It has a population of 1.06 billion, which is growing at a rate of 1.65% per annum. According to the NCAER, there are five classes of consumer households, ranging from the destitute to highly affluent, which differ considerably in their consumption behaviour and ownership patterns across various categories of goods. These classes exist in urban as well as rural households and consumption trends may differ significantly between similar income house holds in urban and rural areas.

Movement to cheaper oils / Pricing power Edible oil prices are a sensitive issue for Indian households. Edible oil being an essential ingre-North Mustard, rape East Mustard, rape West Groundnut South Groundnut, coconut India is cortunate in having a wide range of oilseed crops grown in its different agro-climatic zones. Groundnut, mustard/rapeseed, sesame,safflower, linseed, Niger seed/castor are the major traditionally cultivated oilseeds. Soya bean and sunflower oils have also assumed importance in recent years. Coconut is the most important structure of the Indian consumer market. Consumer classes (annual income in Rs) 1996 2001 2007 Consumer Behaviour and Awareness with special reference to Edible Oil users

Eibble oil industry in India

Climatic conditions in India favor growing a variety of oilseeds. On the demand side, a growing population and vastly varied dietary habits have ensured a thriving market for edible oil in the country. In fact, there is a substantial demand overhang, which is expected to continue for some years. At present, this is offset by imports that cater to almost half of the total domestic consumption. With cheap imports threatening to cripple the domestic industry, the government is walking a tightrope between filling the demand supply gap and the political need to keep the domestic industry in good health. Unorganized, medium and small players dominate the industry. Hence, quality remains a concern. There is need for better regulatory control to protect consumers.

An average Indian's yearly edible oil requirement has gone up from 7.0 kg in 1996-97 to 11.8 kg in 2000-01. Despite the variety of oilseeds grown in India, the country imports a substantial quantity of edible oil, which also works out cheaper. Allied factors contributing to imports are the higher cost of cultivation in India and uneconomic oil extraction systems.

Oilseeds in India account for around 5.0 percent of the Gross National Product (GNP) and 14.0 percent of the country's area under cultivation of crops. Castor, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower, Sesame and Sunflower are some of the major oilseeds grown. India produces 10 percent of the world's oilseeds, but has a low productivity of around 850-900 kg per hectare (compared to a world average of around 1,100-1,350 kg per hectare).

The amount of oil extracted from the seed varies with the type and quality of seed. In many cases, the oil recovery rate is upwards of 30.0 percent with Sesame accounting for a high 45.0 percent.Domestic consumption of edible oils has been growing at 4.0-5.0 percent a year. The consumption in 2001-02 was around 25.75 million tons. Non-packaged oils account for nearly 50.0 percent of consumption in both urban and rural markets. In the remaining 50.0 percent contributed by packaged oils, branded oils constitute a small portion of approximately 10.0-15.0 percent.

Process Description: Edible Oil Refining

The process of EDIBLE OIL REFINING in general comprises of Degumming, Neutralization, Bleaching and Deodorization and Winterisation. Chemical refining is the traditional method whereby the free fatty acid of the crude oils is neutralized with Caustic Soda. The resultant Sodium Soaps are removed by Batch Settling or by means of Centrifugal Separators. The neutral oils are subsequently bleached and deodorized. This method can be used for reliably refining virtually all crude oils, including oils of low quality, with the exception of Castor Oil. In all alternative method of edible oil refining of Physical refining, the free fatty acids are removed by distillation in one stage of deodorizing. A fundamental criterion for using this method is that the crude oils should be degummed as effectively as possible, however this is only possible to a limited extent with some crude oil qualities. Other oils for instance cottonseed oil or fish oils, is fundamentally not suitable for Physical Refining.

DEGUMMING:-

The Edible Oil Refining process depending on types of Phosphatides either water degumming, Acid Degumming, or Superdegumming is carried out so as to yield Phosphorous contents of less than 10ppm.

NEUTRALIZATION: -

Here the predegummed oils or oils with very low phosphatide contents are saponified with Caustic Soda and the Sodium Soap is separated. The oil is initially heated to the optimum process temperature. In order to condition the non-hydratable phosphatides, a small quantity of concentrated phosphoric acid is added and intensively mixed with oil. Following a brief reaction time, diluted caustic soda is added in order to neutralize the free fatty acid and the phosphoric acid. After mixing with the oil, the mixture is either conveyed directly to the first separator or it passes through a further reaction tank. The latter is recommended only for oils with a relatively high phosphatide content in the neutral oil is still too high for the subsequent process stages, and it must therefore be reduced further by one or two washings. For this purpose hot water is added to the oil, intensively mixed and the soapy wash water is removed in a further separator. In general one wash stage is adequate. A second washing is only necessary if very low residual soap contents are required.

Recently to reduce the water consumption in Edible Oil refineries we have pioneered the use of Silica Adsorbents for removal of residual soaps after neutralization. Upto 1000 ppm soaps are removed by sequential addition of silica adsorbent under presence of moisture at 65 C. The dosage of the silica adsorbents may vary from 0.1 to 0.2%.The silica adsorbents further also pick up polar impurities in oil and also gums to give a better edible oil in subsequent processes.

BLEACHING:-

For Edible Oil Refining - The unique CHEMPRO SOFT- BLEACH Bleaching system gently removes residual Phosphatides, metals, soaps and oxidation products in addition to colouring matter.

The washed and neutralized oil is preheated and fed to the Bleacher through the Cascade Vacuum Dryer. Bleaching earth and activated carbon is added to the oil through the dosing unit which is controlled by a programmable controller. The Bleacher Proprietary designed with internal partitions and set of high efficiency turbine agitators to avoid short cycling and provide necessary retention time before filtration. The conjunction of vacuum dryer with a bleacher is what is unique about SOFT BLEACH where by oil going to the bleacher is thoroughly dried and deaerated in the cascade vacuum dryer and also the fugitive particles from the bleacher sucked under vacuum are scrubbed by the down coming oil. The bleached oil from the Pressure Leaf Filters transferred to the bleached oil tank for intermediate storage.

For Edible Oil Refining CHEMPRO has a unique advantage of deep knowledge of the sorption processes and understanding of surface phenomenon of various grades of Fullers Earths derived from attapulgite, sulfuric and hydrochloric Activated Earths derived from montmorillonite, Steam Activated Carbons and Chemically Activated Carbons. This makes them understand the bleaching process not superficially for removal of colour but also as a tool to remove undesirable toxic residues like pesticides, heavy metal, mineral oil traces.

DEODORIZATION:- For Edible Oil Refining -The CHEMPRO COMPACK DEODORIZER is based on Thin Film counter current Distillation Technology which drastically reduces steam consumption to less than half of what one would use in a conventional tray Deodorizer. The bleached oil from intermediate processed is heated regeneratively with outgoing Deodorized oil and heated in a Deaerator by thermal oil. The hot oil flows by gravity either to a packed column or a tray column or through both of them in series. The oil is then cooled regeneratively and then by water.

The COMPACK DEODORIZER handles the most demanding of processing needs for a variety of feedstock, in the most efficient manner besides being gentle on the oil.This ensures an extremely high steam to oil interfacial surface without the buildups or stagnant zones. Fatty acid removal occurs instantaneously and hydrolysis is avoided. Lower temperature and lower residence times result in lower trans-fatty acid formation.

The COMPACK DEODORIZER is available in variants like single column and split column design where by the packed column and tray column are in series or in parallel respectively. The advantage in the latter being flexibility to use only the tray column by passing the packed column if need arises. Besides the other options available are final heating and cooling under vacuum. The superior scrubbing equipment featuring structured packing and strategically placed De- misters insures minimal carry over of the fatty acid to the hot well.

Vegetable fats and oils

Vegetable fats and oils are lipid materials derived from plants. Physically, oils are liquid at room temperature, and fats are solid. Chemically, both fats and oils are composed of triglycerides, as contrasted with waxes which lack glycerin in their structure. Although many different parts of plants may yield oil, in commercial practice, oil is extracted primarily from seeds. The melting temperature distinction between oils and fats is imprecise, since definitions of room temperature vary, and typically natural oils have a melting range instead of a single melting point since natural oils are not chemically homogenous. Although thought of as esters of glycerin and a varying blend of fatty acids, fats and oils also typically contain free fatty acids, mono- and di- glycerides, and unsaponifiable lipids.

Vegetable fats and oils may be edible or inedible. Examples of inedible vegetable fats and oils include processed linseed oil, tung oil, and castor oil used in lubricants, paints, cosmetics, pharmaceuticals, and other industrial purposes.

Uses of triglyceride vegetable oil

Oils extracted from plants have been used in many cultures, since ancient time. As an example, in a 4,000-year-old "kitchen" unearthed in Indiana's Charlestown State Park, archaeologist Bob McCullough of IPFW found evidence that natives used large slabs of rock to crush hickory nuts, then boiled them in water to extract the oil.[2]

Culinary uses

Many vegetable oils are consumed directly, or used directly as ingredients in food and dogfood - a role that they share with some animal fats, including butter and ghee. The oils serve a number of purposes in this role:

o Shortening - to give pastry a crumbly texture . o Texture - oils can serve to make other ingredients stick together less. o Flavor - while less-flavorful oils command premium prices, oils such as olive oil or almond oil may be chosen specifically for the flavor they impart. o Flavor base - oils can also "carry" flavors of other ingredients, since many flavors are present in chemicals that are soluble in oil.

Secondly, oils can be heated, and used to cook other foods. Oils that are suitable for this purpose must have a high flash point. Such oils include the major cooking oils - canola, sunflower, safflower, peanut etc. Tropical oils, like palm oil, coconut oil and rice bran oil, are particularly valued in Asian cultures for high temperature cooking, because of their unusually high flash point.

Hydrogenated oils

Unsaturated vegetable fats and oils can be transformed through partial or complete hydrogenation into fats and oils of higher melting point. The hydrogenation process involves "sparging" the oil at high temperature and pressure with hydrogen in the presence of a catalyst, typically a powdered nickel compound. As each double-bond is broken, two hydrogen atoms each form single bonds with the two carbon atoms. The elimination of double-bonds by adding hydrogen atoms is called saturation; as the degree of saturation increases, the oil progresses towards being fully hydrogenated. An oil may be hydrogenated to increase resistance to rancidity (oxidation) or to change its physical characteristics. As the degree of saturation increases, the oil's viscosity and melting point increase.

The use of hydrogenated oils in foods has never been completely satisfactory. Because the center arm of the triglyceride is shielded somewhat by the end fatty acids, most of the hydrogenation occurs on the end fatty acids. This makes the resulting fat more brittle. A margarine made from naturally more saturated oils will be more plastic (more "spreadable") than a margarine made from, say, hydrogenated soy oil. In addition, partial hydrogenation results in the formation of large amounts of trans fats in the oil mixture, which, since the 1970s, have increasingly been viewed as unhealthy.

Industrial uses

Vegetable oils are used as an ingredient or component in many manufactured products.

• Many vegetable oils are used to make soaps, skin products, candles, perfumes and other personal care and cosmetic products. • Some oils are particularly suitable as drying agents, and are used in making paints and other wood treatment products. Dammar oil (a mixture of linseed oil and dammar resin), for example, is used almost exclusively in treating the hulls of wooden boats. • Vegetable oils are increasingly being used in the electrical industry as insulators as vegetable oils are non-toxic to the environment, biodegradable if spilled and have high flash and fire points. However, vegetable oils are less chemically-stable, so they are generally used in systems where they are not exposed to oxygen, and they are more expensive than crude oil distillate. Two examples are FR3 by Cooper Power and Biotemp by ABB. Midel 7131 by M & I materials is a synthetic tetraester, like a vegetable oil but with four fatty acid chains compared to the normal three found in a natural ester, and is manufactured by an alcohol plus acid reaction. Tetraesters generally have high stability to oxidation and have found use as engine lubricants. • Vegetable oil is being used to produce bio-degradable hydraulic fluid[4] and lubricant.[5] • Common vegetable oil has also been used experimentally as a cooling agent in PCs.

One limiting factor in industrial uses of vegetable oils is that all such oils eventually chemically decompose turning rancid. Oils that are more stable, such as Ben oil or mineral oil, are preferred for some industrial uses.

Vegetable-based oils, like castor oil, have been used as medicine and as lubricants for a long time. Castor oil has numerous industrial uses, primarily due to the presence of hydroxyl groups on the fatty acid chains. Castor oil, and other vegetable oils which have been chemically modified to contain hydroxyl groups, are becoming increasingly important in the production of polyurethane plastic for many applications. These modified vegetable oils are known as natural oil polyols. Pet food additive

Vegetable oil is used in production of some pet foods. AAFCO defines vegetable oil, in this context, as the product of vegetable origin obtained by extracting the oil from seeds or fruits which are processed for edible purposes. In some poorer grade pet foods, the oil is listed only as "vegetable oil", without specifying the particular oil.[6]

Fuel

Vegetable oils are also used to make biodiesel, which can be used like conventional diesel. Some vegetable oil blends are used in unmodified vehicles but straight vegetable oil, also known as pure plant oil, needs specially prepared vehicles which have a method of heating the oil to reduce its viscosity. The vegetable oil economy is growing and the availability of biodiesel around the world is increasing.

Extraction

The "modern" way of processing vegetable oil is by chemical extraction, using solvent extracts, which produces higher yields and is quicker and less expensive. The most common solvent is petroleum-derived hexane. This technique is used for most of the "newer" industrial oils such as soybean and corn oils.

Another way is physical extraction, which does not use solvent extracts. It is made the "traditional" way using several different types of mechanical extraction. [7] This method is typically used to produce the more traditional oils (e.g., olive), and it is preferred by most "health-food" customers in the USA and in Europe. Expeller-pressed extraction is one type, and there are two other types that are both oil presses: the screw press and the ram press. Oil seed presses are commonly used in developing countries, among people for whom other extraction methods would be prohibitively expensive. Production

Crude oil, straight from the crushing operation, is not considered edible in the case of most oilseeds. The same is true for the remaining meal. For instance, animals fed raw soy meal will waste away, even though soy meal is high in protein. Researchers at Central Soya discovered that a trypsin inhibitor in soybeans could be deactivated by toasting the meal, and both licensed their invention, and sold soy meal augmented with vitamins and minerals as MasterMix, a product for farmers to mix with their own grain to produce a high quality feed.

The processing of soy oil is typical of that used with most vegetable oils. Crude soy oil is first mixed with caustic soda. Saponification turns triglycerides into soap. The soap is removed with a centrifuge. Neutralized dry soap stock (NDSS) is typically used in animal feed, more to get rid of it than because it is particularly nourishing. The remaining oil is deodorized by heating under a near-perfect vacuum and sparged with water. The condensate is further processed to become vitamin E food supplement, while the oil can be sold to manufacturers and consumers at this point.

Some of the oil is further processed. By carefully filtering the oil at near-freezing temperatures, "winter oil" is produced. This oil is sold to manufacturers of salad dressings, so that the dressings do not turn cloudy when refrigerated.

The oil may be partially hydrogenated to produce various ingredient oils. Lightly hydrogenated oils have very similar physical characteristics to regular soy oil, but are more resistant to becoming rancid.

Margarine oils need to be mostly solid at 32 °C (90 °F) so that the margarine does not melt in warm rooms, yet it needs to be completely liquid at 37 °C (98 °F), so that it doesn't leave a "lardy" taste in the mouth. Another major use of soy oil is for fry oils. These oils require substantial hydrogenation to keep the polyunsaturates of soy oil from becoming rancid.

Hardening vegetable oil is done by raising a blend of vegetable oil and a catalyst in near-vacuum to very high temperatures, and introducing hydrogen. This causes the carbon atoms of the oil to break double-bonds with other carbons, each carbon forming a new single-bond with a hydrogen atom. Adding these hydrogen atoms to the oil makes it more solid, raises the smoke point, and makes the oil more stable.

Hydrogenated vegetable oils differ in two major ways from other oils which are equally saturated. During hydrogenation, it is easier for hydrogen to come into contact with the fatty acids on the end of the triglyceride, and less easy for them to come into contact with the center fatty acid. This makes the resulting fat more brittle than a tropical oil; soy margarines are less "spreadable". The other difference is that trans fatty acids (often called trans fat) are formed in the hydrogenation reactor, and may amount to as much as 40 percent by weight of a partially hydrogenated oil. Trans acids are increasingly thought to be unhealthy.

Sparging

In the processing of edible oils, the oil is heated under vacuum to near the smoke point, and water is introduced at the bottom of the oil. The water immediately is converted to steam, which bubbles through the oil, carrying with it any chemicals which are water-soluble. The steam sparging removes impurities that can impart unwanted flavors and odors to the oil.

Other significant triglyceride oils include:

• Corn oil, one of the most common, and inexpensive cooking oils. • Grape seed oil, used in cooking and cosmetics • Hazelnut and other nut oils • Linseed oil, from flax seeds • Rice bran oil, from rice grains • Safflower oil , a flavorless and colorless cooking oil. • Sesame oil, used as a cooking oil, and as a massage oil, particularly in India. Chapter - 3 Research Methodology

MEANING OF RESEARCH

Redman and Mory define research as a “Systematized effort to gain new knowledge.” The advanced learner’s dictionary of current English lays down the meaning or research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge.” Objectives of Research

1. To find out types of edible oils which are mostly preferred by the consumers for purpose of daily cooking.

2. To find out the qualities on which consumers purchase a particular brand of cooking oil.

3. To identify the factors influence purchase of any branded edible oil.

4. To find the perception about Saffola oil among consumers.

5. To find the relationship between consumer Income level and Saffola Oil users.

6. To find the relationship between hearts related disease and saffola users.

Hypothesis 1. There is no relationship between consumer income level and saffola oil users. 2. There is no relationship between heart disease and saffola users. Research Design Universe – Kota City Sampling Design - Convenient Sampling

Data Collect From - V-mart, Big Bazaar, Door to Door, Shops

Sampling unit - Consumer

Sample size - 100 Consumers

Type of Research – descriptive research

Tool of Analysis

Simple statistical tools and techniques like average; ratios, percentage and Chi- Square were used to analyze the data.

Limitations of the Study 1. It was difficult for all the consumers to give opinion about performers off edible oil. 2. It has been assumed that whatever response was obtained from the respondents were true and best to their knowledge. 3. Biasness can not be eliminated completely due to use of convenience sampling. 4. There was time Constraint. Chapter-4 Data Analysis and Interpretations

[A] Data Profile

(i) Age Group - a) less than 30 Yr. b) 30-45 Yr. c) Above 45 yr. a) Less than 30 years 13 b) 30-45 years 52 c) above 45 years 35

(ii)Education- a) Greater than and equal 12 b) Greater than and equal Graduate c) Greater than and equal Post Graduate d) Professional Degree a) Greater than equal 12 2 b) Greater than equal Graduate 49 c) Greater than equal post graduate 34 d) Profession degree 15

(iii)Occupation - a) Profession (private) b) Business c) Govt.-Services a) Profession( private) 58 b) Business 17 c) Govt. Service 25

(iv)Family Members a) less than and equal 4 b) 5-7 c) Greater than 7 a) Less than equal 4 55 b) 5-7 members 38 c) greater than 7 7

(v)Income - a) Below 10000 b) 10000-20,000 c) 20,000-40,000 d) Above 40,000 a) below 10 thousand 10 b) 10-20 thousand 23 c) 20-40 thousand 47 d) Above 40 thousand 20

[B] Objective based Analysis

Q.1 What is use for cooking in your house? a) Desi Ghee b) Vegetable Oil / Vanaspati Oil c) Refined Oil d) Others e) Cann’t say

Percentage

a) Desi Ghee 3% b) Vegitable Oil 0% c) Refined Oil 75% d) others 20% e) Cann’t Say 2%

percentage 2% 3% 0%

20% desi ghee vegitableoil Refined oil others cann't say 75%

Interpretation: 3% persons said that they are using desi ghee for cooking in their houses and 75% persons said that they use refined oil and remaining 20% couldn’t specifically mentioned cooking medium.

Q.2 Which type of refined oil do you use? ( Multi Choice) a) Soybean Oil b) Groundnut Oil c) Sunflower Oil d) Mustared Oil e) Any other f) Cann’t say Percentage a)Soyabean Oil 67% b) Ground nut Oil 65% c) Sunflower Oil 35% d) Mustard Oil 80% e) any other 55% f) Cann’t Say 0%

Interpretation: 67% persons said that they are using soyabean refined oil, 65% persons said that they are using groundnut oil, 80% persons said that they are using mustered oil, 35% persons said that they are using sunflower oil and remaining 55% persons are using any other refined oil. Q.3 which brand do you use? (Multi Choice) a)Fortune b)Chambal c) Saffola d)Nature lite e)Sundrop f) Others ………………… g)Cann’t say Percentage

a) Fortune 128% b) Chamble 32% c) Saffola 17% d) Nature lite 35% e) Sundrop 35% f) Cann’t say 27%

Percentage

27% fortune 35% chamble 128% Saffola nature lite 35% sundrop cann't say 17% 32%

Interpretation: 128% persons said that they are using fortune brand, 32% persons said that they are using chamble brand,17% persons said that they are using saffola brand, 35% persons said that they are using nature lite, 35% persons said that they are using Sundrop remaining 27% Persons using other types of brand.

Q.4 What quantity pack do you purchase mostly?

a) 1 Litre b) 2 Litre c) 5 Litre d) 15 Litre e) Cann’t say

a) 1 litre 47 b) 2litre 3 c) 5litre 45 d) 15litre 5 e) Cann’t say 0

50 45 40 35 1litre 30 2litre 25 5litre 20 15litre 15 Cann’t say 10 5 0

Interpretation: 47 persons said that they mostly purchase 1litre quantity pack, 3 persons said that they mostly purchase 2 litre, 45 persons said that they mostly purchase 5 litre quantity pack and 5 persons said that they use 15 litre quantity pack.

Q.5 Why do you purchase this brand only? (Ranked out any three option in any order of preference) a) Price b) Taste c) Easy to digest d) Health Reason e) Recommendation of Retailer f) Recommendation of Doctor g) Brand Loyalty h) Availability i) Cann’t say Percentage

a) Price 83% b) Taste 85% c) Easy to Digest 5 d) Health Reason 15% e) Recommendation of Retailer 0 f) Recommendation to Doctor 2% g) Brand Loyalty 20 h) Availability 95% i) Cann’t say 0

Percentage 0% Price

T aste 95% 83%

Easy to digest 20% 85% 2% Health reson 15% 0% 5%

Interpretation: 83% persons said that they are using this brand because of price, 85% persons said that they are using this brand because of taste, 5% said that it is easy to digest, 15% persons said that they are using this brand because of health reasons,20% persons said that they are using this brand because of brand loyalty and remaining 85% persons are using this brand because its availability. Q.6 Is there any member in your house having heart related disease? (Blood-Pressure, Cholesterol, Problem included) a) Yes b) No

Percentage

a) Yes 68% b) No 32%

Interpretation: 68% persons said that there is any members having a heart related disease while 32% said that there is no member in their family having heart related dieses.

Q.7 Do you aware about Saffola Brand?

a) Yes b) No

a) Yes 100 b) No 0 120

100

80 Yes 60 No 40

Interpretation: 100% persons aware about saffola brand there is no person who does not aware about saffola brand.

Q.8 Are you using/used Saffola Brand?

a) Yes b) No

Percentage a) Yes 17% b) No 83% Interpretation: 17% persons said that they are using saffola brand and remaining 83% persons said that they not using saffola brand.

Q.8(i) If no, why are you not using Q.8(ii) If Yes, why are you using Saffola Oil? Saffola Oil? a) Taste a) Taste b) Smell b) Recommended by doctor c) Expensive c) Health and quality conscious d) Only for heart patient d) No fix oil brand e) Unavailability (a) Reasons of not using saffola Oils

Percentage a) Taste 0% b) Smell 0% c) Expensive 93.98% d) Only for heart patients 6.02% e) Unavailability 0%

Interpretation: 93.98% persons said that they are not using saffola brand because it is expensive and 6.02% persons said that it is only for heart patients.

(b) Reasons of Using Saffola Oils

Percentage a) Taste 0% b) Recommendation by Doctor 11.77% c) Health and quality Concious 88.23% d) No fix oil brand 0% Interpretation: 11.77% person said that they are using this brand because of recommended by doctor and 88.23% persons said that they are using this brand because of health or quality conscious. Chi-Square Analysis for Hypothesis

A) Income level and usability of Saffola Oil

Income Level Saffola No saffola Total Below 10 thosand 2 8 10 10-20 thousand 3 20 23 20-40 thousand 9 38 47 Above 40 thousand 3 17 20 Total 17 83 100

Note: Due to one of the frequencies is less than five so after applying yate’s correction improved, observed frequency table is as follows:

Income Level Saffola No saffola Total Below 10 thosand 2.5 7.5 10 10-20 thousand 3.5 19.5 23 20-40 thousand 7.5 39.5 47 Above 40 thousand 3.5 16.5 20 Total 17 83 100

Null Hypothesis: Ho:There is no relationship between consumer income level and saffola oil users. Alternative Hypothesis: H1: There is relationship between consumer income level and saffola oil users. The expected Frequencies are: 1.7 8.3 3.91 19.09 7.99 39.01 3.4 16.6

Applying Chi-Square(x2) test:

O E (O-E) (O-E)2 (O-E)2/E 2.5 1.7 0.8 0.64 0.3765 3.5 3.91 -0.41 0.1681 0.0429 7.5 7.99 -0.49 0.2401 0.0300 3.5 3.4 0.1 0.01 0.0029 7.5 8.3 -0.8 0.64 0.0771 19.5 19.09 0.41 0.1681 0.0086 39.5 39.01 0.49 0.2401 0.0061 16.5 16.6 -0.1 0.01 0.0006

Sum of (O-E)2/E = 0.5447 Degree of freedom(d.f.)=(r-1)(c-1) =(4-1)(3-1) =3*1 =3 Table value of x2 at 3 d.f. in 5% significant is = 7.815

Interpretation: For d.f.=3 and level of significant level is 0.05. The table value of x2 =7.815. The calculated value of x2 is less than the table valve, so null hypothesis is accepted. Means there is no relationship between Income level and saffola Oil. B) Heart disease and usability of Saffola Oil

Saffola No Saffola Total Heart Disease 12 56 68 No Heart 5 27 32 Disease Total 17 83 100

Null Hypothesis: Ho:There is no relationship between Heart Dieses and saffola oil users. Alternative Hypothesis: H1: There is relationship between Heart disease and saffola oil users.

The expected Frequencies are:

11.56 56.44 5.44 26.56

Applying Chi-Square(x2) test: O E (O-E) (O-E)2 (O-E)2/E 12 11.56 0.44 0.1936 0.0167 5 5.44 -0.44 0.1936 0.0356 56 56.44 -0.44 0.1936 0.0034 27 26.56 0.44 0.1936 0.0072

Sum of (O-E)2/E = 0.0629 Degree of freedom (d.f.) =(r-1)(c-1) =(2-1)(2-1) =1*1 =1 Table value of x2 at 1 d.f. in 5% significant is = 3.184

Interpretation:

For d.f.=1 and level of significant level is 0.05. The table value of x2 =3.184. The calculated value of x2 is less than the table valve, so null hypothesis is accepted. Means there is no relationship between Heart disease and Saffola Oil. Chapter-5 Findings 1) After research it is found that 3 persons said that they are using desi ghee for cooking in their houses and 75 persons said that they use refined oil remain 20 couldn't specifically mention cooking medium.

2) After research it is found that 67 persons said that they are using soybean refinedoil,65 persons said persons said that they are using groundnut oil,80 persons said that they are using mustered oil, 35 persons said that they are using sunflower oil and remaining 55 persons are using any other refined oil .

3) After research it is found that 128 persons said that they are using fortune brand, 32 persons said that are using chamble brand, 17 persons said that they are using saffola brand, 35 persons said that are using Nature lite, 35 persons said that they are using sundrop remaining 27 persons using other type of brands.

4) After research it is found that 47 persons said that they are mostly purchase 1 ltr. Quantity pack, 3 persons said that they are mostly purchase 2 ltr , 45 persons said they are mostly purchase 5 ltr quantity pack and 5 persons said that they use 15 ltr quantity pack. 5) After research it is found that 83% persons said that they are using saffola brand because of price, 85% persons said that they are using this brand because of taste, 5% said that it is easy to digest, 15% persons said that they are using this brand because of health reasons,20% persons said that they are using this brand because of brand loyalty and remaining 85% persons are using this brand because its availability.

6) After research it is found that 68% persons said that there is any members having a heart related disease while 32% said that there is no member in their family having heart related dieses. 7) 100% persons aware about saffola brand there is no person who does not aware about saffola brand.

8) 17% persons said that they are using saffola brand and remaining 83% persons said that they not using saffola brand.

9) 93.98% persons said that they are not using saffola brand because it is expensive and 6.02% persons said that it is only for heart patients.

10) 11.77% person said that they are using this brand because of recommended by doctor and 88.23% persons said that they are using this brand because of health or quality conscious. Chapter-6 Conclusions After analyzing the Consumer behavior of Edible Oil consumers in Kota, it can be concluded:

1. Most of the people are using Refined Oil because it is easy to digest as compare to Desi Ghee and Vegetable Oil. It is easy to digest because there is unsaturated fat in refined oil.

2. Soybean Oil, Groundnut oil and Mustard oil are most preferred Refined Edible Oil in Kota.

3. Fortune, Chambal are mostly consumed by consumer in Kota City.

4. People mostly purchase 1litre and 5 litre pack of refind oil.

5. Fortune, Chambal are mostly used by the consumer of Kota City because of Price, Taste, and Availability.

6. All Consumers are aware about saffola brand.

7. Mostly of Kota City are not using Saffola oil because of its cost while some other consumers are using saffola oil because of health & Quality Concious.

8.After analyzing the, it can be concluded that there is no relationship between consumer income level and saffola Oil.

9. After analyzing the, it can be concluded that there is no relationship between Heart disease and saffola Oil. Chapter-6 Suggestions Marico limited company can take following action to increase its market share in Kota City:

1. People do not know much know about all product of Saffola, so company should show all variants of Saffola at the end of all Saffola’s advertisement.

2. Company should give a health tips booklet with every pack of 5 litres of Saffola, which contain yoga and exercise tips which helps to keep them fit and fine and also explain the importance of saffola oils.

3. Company should give a recipe booklet or CD of Yoga with every pack of 15 Liters of Saffola. In that booklet give some recipe which can cook in fewer amounts of oil and Yoga CD for helps to keep fit and fine.

4. Company should organize small health camps at important public places so that maximum people can take advantage of these health camps and from that way company can also increase its visibility in front of people.

5. On World health Day Company should organize a small marathon in Kota city and organize blood pressure and diabetes check up camps.

6. Company should launch small size pack of saffola so that new customer can try without spending more, this strategy will helps to increase the total number of Saffola’s users.

7. Company should work upon to change taste and smell of the product without affecting to its quality because some of the users of Saffola oil left don’t use it due to its taste and smell.

BIBLIOGRAPHIES

BOOKS:

• Robbins, Stephen P., 2003. Organizational Behavior. New Delhi: Prentice Hall of India. • Aswathappa, K.. Human Resource Management. New Delhi: Tata McGraw-Hill Publishing Company, Ltd ED fourth ..2006 • Tripathi P.K. Personal management and industrial relation by Human resource development. • Tripathi P.K Organization Development and Human Resource Development • French&Bell OD published by pearson education ED sixth 2007

WEBSITE:

• www.google.com • www.citeHR.com • www.stressmed.com • www.indianmba.com • www.wikipidia

OTHERS:

• Human Resource Management. Hyderabad: ICFAI Center for Management Research. • Daily Notes obtained while working with DSCL • Human capital vol.13 no.5 oct 2009 Annexure Questionnaire

Name - …………………………………… Address- ………………………………... Age Group - a) less than 30 Yr. b) 30-45 Yr. c) Above 45 yr. Education- a) Greater than and equal 12 b) Greater than and equal Graduate c) Greater than and equal Post Graduate d) Professional Degree Occupation - a) Profession (private) b) Business c) Govt.-Services Family Members- a) Greater than and equal 4 b) 5-7 c) Greater than 7 Income - a) Below 10000 b) 10000-20,000 c) 20,000-40,000 d) Above 40,000 Q.1 What is use for cooking in your house? a) Desi Ghee b) Vegetable Oil / Vanaspati Oil c) Refined Oil d) Others e) Cann’t say

Q.2 Which type of refined oil do you use? ( Multi Choice) a) Soybean Oil b) Groundnut Oil c) Sunflower Oil d) Mustered Oil e) Any other f) Cann’t say

Q.3 Which brand do you use? (Multi Choice) a) Fortune b) Chambal c) Saffola d) Nature lite e) Sundrop f) Others ………………… g) Cann’t say

Q.4 What quantity pack do you purchase mostly? a) 1 Litre b) 2 Litre c) 5 Litre d) 15 Litre e) Cann’t say

Q.6 Is there any member in your house having heart related desease? (Blood-Pressure, Cholesterol, Problem included) a) Yes b) No

Q.7 Do you aware about Saffola Brand? a) Yes b) No Q.8 Are you using/used Saffola Brand?

a) Yes b) No

Q.8(i) If no, why are you not using Q.8(ii) If Yes, why are you using Saffola Oil? Saffola Oil? 8. Taste e) Taste 9. Smell f) Recommended by doctor 10. Expensive g) Health and quality conscious 11. Only for heart patient h) No fix oil brand 12. Unavailability

• • Thanks. • • • (………………….) • • Signature