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_________________________________________________________B.V.

U, Pune

A
Project Report
On

"MARKET STUDY OF STAR EDIBLE OIL


Submitted To

INSTITUTE OF MANAGEMENT, KOLHAPUR


A Constituent Unit Of
BHARATI VIDYAPEETH UNIVERSITY, PUNE
In Partial Fulfillment of The Requirement For The Award Of Degree Of

Master of Business Administration


Submitted By

Mr. Jagadish R. Patil.


Under The Guidance Of

Mrs. Q. J. Tamboli.
Through The Director

INSTITUTE OF MANAGEMENT, KOLHAPUR


A Constituent Unit Of
BHARATI VIDYAPEETH UNIVERSITY, PUNE
2006-2007

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

CERTIFICATE

This is to certify that the project report entitled,


"MARKET STUDY OF STAR EDIBLE OIL
being submitted by Mr Jagadish R . Patil, to Bharati Vidyapeeths Institute of
Management as a partial fulfillment of the requirement for the award of the
degree of Master of Business Administration has been carried out
under my guidance and supervision and conclusions drawn by them are
based on the work done and data collected by their project work.
To the best of my knowledge and belief the matter presented here has
not been submitted for the award of Master of Business Administration
earlier.

Place: Kolhapur

Date:

Mrs. Q. J. Tamboli.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

CONTENTS

Chapter
No.

Title

1.

INTRODUCTION

2.

COMPANY PROFILE

3.

THEORETICAL BACKGROUND

4.

DATA ANALYSIS & INTERPRETATION

5.

FINDINGS & SUGGESTIONS

6.

ANNEXURE

7.

BIBLIOGRAPHY

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Introduction
Today the basic needs of human beings are of three types i.e. Food,
Cloth and Shelter. From these three basic needs the most urgent need is food.
For a tasty and healthy food some ingredients are required. It might be some
kinds of oil, spices, cucumber leaf, salt and other types of spices. Oil is one
of these ingredients.
From ancient time human being is using oil for cooking purpose. Such
oil is called as Edible Oil. Extracting oil seeds produces edible oils. These
seeds are of Groundnut, Sunflower, Soya bean seeds etc. This edible oil is of
for cooking tasty and healthy food.
As geographical profile differs, types of cooking oil also differ. In
Southwest states, Coconut oil is used for cooking purpose, but in central
states, Soya oil, Groundnut oil or Saraki oil is used for cooking purpose. The
tastes and preferences are different from person to person and also area to
area.
Now a days people are very much calorie conscious. This had impact
on trend of cooking oil application. In last 5 to 6 years, oils other than
Groundnut oil gaining lot of popularity. Health experts already accepted that
Saraki oil, Soya oil, or Sunflower oil contains low percentage of cholesterol.
Ghodawat Foods International Pvt. Ltd is dealing with production of
edible oil. The study aims to bring out the consumer behaviour towards Star
refined oil i.e. to check the customer preferences towards Star edible oil.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Objectives
1. To know about the tastes and preferences of the customers.
2. To identify the consumption pattern of edible oil by customers.

3. To study consumer behaviour towards Star Refined Oil.


4. To find out the customers level of satisfaction of Star Refined Oil.
5. To assess the role of advertising media in the marketing of oil.

Methodology
The study is based on data collected from the secondary data. In order
to get the information the source used is;
Secondary Data
Secondary data refers to the data which have already been collected
and analyzed by someone else. Secondary data was collected through
internal and external sources.
The internal sources include companys brochures, journals, etc.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Scope of the study

1. The scope covers the customer behaviour for the Star Refined Oil
in the study area.
2. The subjective scope of study is restricted to the marketing area.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Company Profile
The dynamic entrepreneurship and vision of Mr. Sanjay D,
Ghodawat has led Sanjay Ghodawat Group of Industries properly
known as STAR GROUP, to a remarkable success in a short span. He
commenced the activities of the Star Group in 1994 by the
establishing the company Ghodawat Pan Masala Products (I) Pvt.
Ltd. which is manufacturing Pan Masala Products under the brand
name STAR. Mr. Sanjay Ghodawat has guided the Star Group to
achieve a remarkable turnover of Rs.325 corers (used 75 Million) in
span of 10 year.
The key for this success is to provide Uncompromising
Quality at competitive Prices.
The company has strong presence in Karnatka, Andhra, Goa
and Maharastra because of gutkha and pan masala marketing. This
gutkha dealer so had confidence in the company came forward and
started new ventures for the oil business of the company.
To meet the growing demand of Packaged Edible Oil and
Extraction, Star Group has set up a Solvent Extraction and Edible Oil
Refinery plant viz. Ghodawat Foods International Pvt. Ltd. in the year
2003. The manufacturing capacity of Solvent Extraction is 300 MTPD
and that of Edible Oil Refinery is 100 MTPD.
The packaged Edible Oil is sold under brand name STAR555,
in domestic market completely. The Extraction i.e. de-oiled cake

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

(DOC) is being exported to the extent of 80% and remaining DOC is


being sold in domestic market.
The Solvent Extraction Plant is set up by TEAM Engineering,
Mumbai and the plant has ultramodern equipment. Alfa Laval India
Limited sets up the Edible Oil Refinery by using advanced 'Soft
Column Technology'. The Company has its own ultra-modern
laboratory for testing and Analysis of various products and raw
materials.

GHODAWAT FOODS INTERNATIONAL PVT. LTD.


Ghodawat

Foods

International

Private

Limited

was

incorporated on 21-10-2002. The company is in the business of oil


manufacturing and refining. The company belongs to an established,
renowned group named Star Group. The star group which was
established in 1994 started in Jaysingpur which was trading just raw
tobacco in sachets, namely Quality Tobacco. The group originally is
in the business of pan masala since 1994 in the name of Ghodawat
Pan Masala Product India Pvt. Ltd.. After ban on Gutkha in
Maharastra, the manufacturing facilities located at Jaysingpur were
relocated at Borgaon in Karnataka. This created availability of ample
space and factory shed in Jaysingpur, which could be utilized. The
group was in search of the product, which will also help to avail the
sales tax deferral available within the group due to installation of
windmills. The group therefore decided on Edible Oil manufacturing
and refining facility. There is substantial demand for the oil in the
country and country imports lot of oil also. Sangli is one of the major
____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

centers for the variety of oil seeds like Soyabean, Ground-nut,


Sunflower, etc. The company has therefore commissioned solvent
extraction and refinery. The operations in the products like pan masala
and gutkha has given immense mileage to the group on account of
turnover, profitability, distribution channels and brand loyalty from
the customers and the discipline of working in the multi state
environment as well as in difficult regulation regime. The group has
the established brand as STAR which has its own market and
popularity.
The group has also started trading into other FMCG products
like Salt, Tea, etc. This makes the bouquet of the consumer products
available, which can be distributed. At the same time there is shortage
of edible oil in country and de oiled cake of the country is in demand
in Middle East and Far East. This one of the main ingredient for the
cattle feed. Hence the market for the product is available.
The company had done test marketing in the year 2002-03 by
buying the refined oil in the market and distributed the same on its
own brand. This helps the company to make the market awareness
about the product and establish the distribution chain.
Today, the Star Group has diversified its activities into
different streams viz. wind power, High-Tech Agriculture, Chemical,
Flexible packaging, Edible Oils, Real Estates and FMCG. Now, the
focus would be to provide FMCG products and packaged essential
commodities to the people at competitive prices.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

COMPANIES OTHER PRODUCTS


Ghodawat Industries (India) Pvt. Ltd

1. Pan Masala Division


2. Wind Power Division
3. Aviation Division
4. FMCG Division
5. Agro Division

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Theoretical Background
Introduction
Marketing is a human activity that takes place in relation to market.
The aim of marketing is to meet and satisfy target customers and wants.
Marketing starts with the identification of the specific needs on the part of
the consumer and ends with the satisfaction of that needs. So the customer is
found both at the beginning and the end of marketing process.
A marketing transaction is one in which the buyer and the seller,
irrespective of the nature of the product. Marketing is a social and
managerial process by which individuals and groups obtain that they need
and want through creating offering and exchanging of values with others.
Consumer behaviour
Consumer behaviour is a study of how individuals make decisions to
spend their available resources on consumption related items. The
heterogeneity among people across the world makes understanding
consumer buying behaviour an intricate and challenging task. The
consumers identify his beliefs, specific needs, attitudes and the kind of
product and brands available in that product category influence his buying
behaviour. The marketing efforts of a firm have a profound impact on the
buying decisions of customers. The success or failure of a product or service
is directly related to the buying behaviour of the customer.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Factors influencing Consumer Buying Behaviour


Consumer buying behaviour is affected by various factors that
determine the product and brand preferences of consumers. The factors that
influence the consumer buying behaviour include cultural, social, personal
and psychological factors.
Cultural Factors
The cultural factors that influence Consumer buying behaviour
include the culture, subculture and social class of the buyer.

Social Factors
Family, friends, formal social groups, colleagues at work and
consumer action groups influence the consumers buying behaviour
significantly. An individuals family greatly influences the buying
patterns of the individual.
Personal Factors
There are different personal factors, which affect the buying
decision process. These factors, such as age, sex, lifecycle stage,
occupation, economic conditions, personality, etc. are unique to every
individual.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Age and lifecycle stage


People at different ages will have different tastes in food,
clothes, furniture and recreation. Even families pass through different
stages of the lifecycle over time.
Occupation and financial status
Occupation and income level of a person have a major impact
on his savings and buying behaviour.
Lifestyle
An individuals way of leading his life will determine his
lifestyle. Factors such as work life, interests, social groups, etc.
influence the life style of an individual.
Psychological Factors
Psychological

factors

that

influence

consumer-buying

behaviour are motivation, perception, attitude and learning.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Buying Decision Process


Five stage model of consumer buying process

Need Recognition

Information Search

Evaluation of alternatives

Purchase decision

Post purchase behaviour

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Need Recognition
The buying process starts when the buyer recognizes a problem
or need. By gathering information from a number of consumer marketers
can identify the problems or the needs of the consumers.
Information Search
In this stage, person starts to collect information about the
product.
Evaluation of alternatives
The person starts to evaluate different alternatives available in
the market. He will accept the most suitable product according to price,
quality, availability and such other factors.
Purchase decision
The actual purchase decision is carry out in this stage. Here the
person will buy the product after the evaluation.
Post purchase behaviour
After purchasing the product the consumer will experience
some level of satisfaction or dissatisfaction. The marketers job does not
end when the product is bought. Marketers must monitor post purchase
satisfaction, post purchase actions and post purchase product uses.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Marketing Strategy
Marketing is the process of planning and executing the conception,
pricing promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational goals. In order to deliver
the product more efficiently and effectively to the target customer, company
formulates marketing strategy. This marketing strategy has four components
which are adjusted in order to get competitive advantage. These four
variables are ---1. PRODUCT
Quality of Star refined oil is too good as compared to
other brands available in market.
Brand name plays a very important role in market. Star
has a very popular brand name in market. For the oil products,
packaging also plays vital role. For the purpose of packaging
Star uses poly thin bags, bottles, cans, etc.
2. PRICE
The manufacturers of the star refined oil sets or
determine oil prices for the distributor, dealer and the ultimate
consumer.
Different variety of the oil may have different prices that
are Soya oil and Ground-nut oil may be priced higher than the
Sunflower oil, Pamolin oil, etc.
While determining the prices, they also think about
discount or coupon scheme for the customers compare to other
producer like Saffola, Gemini, SunFlower & etc.
____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

3. PROMOTION
The important promotion methods which are used by STAR are ;
1 Advertising
2 Personal selling
3 Sales promotion
4 Publicity and public relations
STAR uses some of the promotional activities include
advertising,

gift

vouchers,

coupons

and

various

sales

promotional schemes.
Star refined oil uses T.V., Banners, News-papers, etc. as a
tools or Medias for advertising their brands.
4. PLACE
Place refers to purchase point of the customer. This
broadly includes distribution channels. Distribution is made up
of two components ---a) Physical distribution
b) Channels of distribution
Physical distribution consists of the activities involved in
moving good or services from producer to consumers.
STAR distributes there product or oil directly to the
dealers at different places.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

STARS Channel of Distribution

Company

Dealer

Retailer

Customer

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Competitors for STAR Edible Oil


Sr.no
1
2
3
4
5
6
7
8
9

Competitors
Gemini
Samrat
Suffola
Sunflower
Dhara
Sunrise
Rohini
Safflower
Tiger

The above mentioned products of different companies are main


competitors for the STAR Edible oil. The STAR oil is one of the oil
which is breaking shutters and coming through rapidly.
The scope for the STAR oil is very wide because it has given the
best quality in every aspect of the products that the STAR Group
of industries have launched

The below mentioned data gives us the % share of STAR OIL in West
Maharashtra.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

Sr.no

Brands

%Share

Gemini

20

2
3
4
5
6
7
8
9
10

Sunflower
Suffola
Suffola
Safflower

16
13
12
10
9
7
5
5
3

STAR
Sunrise
Rohini
Samrat
Tiger

SOCIAL TOUCH
Sou. Sushila Danchand Ghodawat Charitable Trust
Is providing social, medical and educational help since its
inception. Acharya Shree Tulsi Blood Bank, one of the best
Blood Banks in India, is run by this Trust. The Trust also
provides 'Ambulance Service' for rural areas round the Clock.
One hand in Charity is worth thousand hands in prayer

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

True to this, the Group has always taken a lead, be it


business or philanthropy. The group has strived to give
humanity a face-lift every time when the predicaments are
adverse, calamities high and hopes sinking.
To serve the society, the needy, the down trodden and
every deprived brethren of the basic needs, the Star Group has
initiated various charitable trusts thoroughly engaged in
extending its best helping hands. A cause to fulfill the social
obligations a call of duty towards humanity
Khivraj Ghodawat Charitable Trust
Runs a self-funded 'Shree Gangabai Khivraj Ghodawat
Kanya Mahavidyalaya' located at Taluka Shirol, which has
endowed literacy to 1400 girls since 1995, from 52 villages.
It is the only college in Jaysingpur city with its own
building and mastered staff that provides education in both arts
and commerce stream along with vocational courses like
tailoring, fashion designing, computer education etc.... A ray of
hope that gives direction towards giving self-employment to the
economically vulnerable class.
Ghodawat Family Charitable Trust
It is a pro-active one, which has aesthetically designed an
open auditorium with a seating capacity of 5000 people. Aptly
given to encourage social gatherings, cultural events, wedding
ceremonies of the needy and their other academic activities.
____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

The Trust frequently holds Medical Camps, Supplies tree


medical aid conducts life saving surgeries for the needy
patients. It also gives financial support to enable the
economically weal students to pursue their studies.

Findings & Suggestions


The findings, which are mentioned below, are on the
basis of the secondary data collected from Internet,
magazines, and Company Broachers. Etc.

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

The suggestions are given accordingly

Findings:1. Consumer behaviour towards Star Refined Oil is good.


2. Ghodawat Food International Pvt. Ltd. uses T.V. and Newspaper as
major advertising media.
3. While purchasing the oil customers gives preference to their tastes.
4. In customers mostly aware about Soya oil and Sunflower oil.
5. In customers are satisfied with the packaging of star refined oil.
6. Most of the customers are satisfied with the prices of Star refined oil.

Suggestions: 1. There is need of improvement in quality of star refined oil by


considering customer satisfaction.
2. There is need of creating awareness about the pamolin oil and
groundnut oil also.
____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

3. While considering rural area management should think about the


prices of the Star refined oil.

Bibliography: 1. Books referred


Marketing Management Philip Kotler
Marketing Management ICFAI

____________________________________________Institute of Management
Kolhapur

_________________________________________________________B.V.U, Pune

2. Company Manuals
3. Company Website
www.ghodawatindustries.com

____________________________________________Institute of Management
Kolhapur

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