Karnavati Federation and Arati brand

MARKETING MANAGEMENT – II

Submitted to:
Dr. PROF. SURESH M.R.

Submitted by:
KAVYA GUPTA: 19145
Section: C

Submitted on: 2nd January 2020

 Table of Contents
Executive Summary................................................................................................................................. 1
Issues ....................................................................................................................................................... 2
Analysis of the case .................................................................................. Error! Bookmark not defined.
Executive Summary
Karnavati Federation, Karnavati Cooperative Oilseeds Growers Federation, was set up in
1978, with a view to helping oilseeds growers in Karnavati. NDDB was the apex agency
implementing the project.
Edible oil is an essential ingredient in India cooking practices. While consumers in Eastern
India preferred mustard oil, those in Karnavati and Maharashtra preferred groundnut
oil. Mustard oil was packed in tankers in Rajasthan, western Uttar Pradesh and Haryana and
repacked by traders in 15 kg tins . Edible oil in pack sizes of 5 kg and less, popularly known
as consumer packing, was low in terms of sales volume.
Labeling was done just to identify the supplier and also for avoiding taxes to some extent. A
trader could have many such labels. Consumers preferred mustard oil that was deep in colour
and pungent. Adulteration with cheaper edible oils such as soyabean oil was also prevalent
Consumers’ preference, in eastern India, for ‘kacchi ghani’ mustard oil, which was known for
its deep colour and pungency, was well known.
Karnavati Federation executives found that marketing of edible oil as a brand was not
common in the market to a great extent due to absence of pure edible oil, high prices, erratic
supplies were attributed as reasons for absence of brand marketing in edible oil
business. However, a few premium ‘kacchi ghani’ edible oil brands Ganesh, Engine and
Haathi existed in Kolkata market. These brands were in the premium category and were 30
years old and were sold in pack sizes less than 5 kg.
In 1987-88, Karnavati Federation hired Tara Sinha Associates(TSA), a leading advertising
firm to carry out a pre-launch survey in Kolkata. The survey concluded the following:
Competing brands such as Engine, Ganesh etc. had strong brand-quality association,Quality
had to be communicated, Price should be reasonable, As close to the basic character of oil as
possible.
Karnavati Federation chose a virgin PVC bottle for packing the oil. This, its executives
felt, would show the colour of the oil and its consistency. The brand name Arati was
chosen.It had the same meaning across the country.
Karnavati Federation decided to launch the product in 1 kg, 2 kg PVC bottles and 5 kg HDPE
jars. Karnavati Federation decided to launch a teaser advertisement campaign in Kolkata
through outdoor advertisement and posters. 28 taking into account around 4-5 percent
operating margin, 3-5 percent margin for distributors and 4 percent margin for retailers in
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addition to taxes and packing costs. This was the cheapest possible pricing by Karnavati
Federation.
The campaign decided to focus on a teaser on outdoor boards with the caption in Bengali
«Gola Shona Ataash Taka» . A pre-launch survey by TSA indicated a demand of around 500
tonnes of consumer packs per month in Kolkata alone and estimated that Karnavati
Federation could capture around 10 percent of the market. Arati brand was also perceived as
having good taste and pungent, two sought after attributes in Kacchighani. However, the
demand was more than what was anticipated, which was an underestimation.

Issues

 About 3 to 4.5 percent of the load from Karnavati was lost in transit. Roughly 10 tonnes
could be packed in cartons in a single truck. In late 90s customers shifted dramatically
from buying scooters to buying motorcycles.
 Distributors refused to accept oil soaked cartons and bottles with oil soaked labels .
 Transportation of edible oil in closed container would increase the cost of
transportation.
 Carrying a large inventory of bottles and jars was constrained by difficulties in
establishing godowns.
 Improper filtration. This caused a negative image in the market.
 Not able to penetrate market properly so people still have a dough about product.
 People think like these oils are unhealthy for healthy so there is no proper awareness.

Recommendation
 Today our food habits, stress & activity level affect both our health & heart. So
Penetrate a market for arti as oil is good foe hear and help it will not harm to health
and heart. which partners your journey for a healthy lifestyle so that you have a
healthy heart. Which takes care of you and your family.
 Bringing together the benefits of natural Antioxidant, MUFA, PUFA and Vitamins A
and D, thus the power of blended cooking oil offers Improved Nutritional Profile,

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 with Losorb technology which ensures 20% less oil absorption in your food, hence
blended oils give you a convenient way of getting the goodness of two oils in one.
 Improve transportation by a tie-up with good transport business which helps in
carrying oil safely and provides it to the customer safely without leakage.
 proper awareness of the product and the brand.
 Safe and easy to handle packaging weather it is related to bottle or a package, that
should be a proper Handel and a sustainable packing-which is recyclable.

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