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Market analysis for Marina cooking oil

Strategic Marketing Year 03 Semester 01

Introduction to the Company


Marina company was established in year 1982 Fully Sri Lankan owned company Vision To be the preferred choice of Sri Lankan consumers and customers looking for any edible oil based product of high quality, safe in use and delivering value for money. Mission Offer innovation in product development Assure quality in manufactured products State of the art production facilities

The value chain


Inbound Logistics - Environmental friendly manufacturing processes Operations caters to the domestic market and exports as well, Introduced bag in box concept to the oil market Outbound logistics - super markets, general trade and caters for bakeries, hotels, restaurants and fast food outlets Marketing and sales TV programs, Exhibition and highlighted the concept of smart housewives Services 24*7 responding customer service hotline Firm infrastructure - Product manufacturing facilities have internationally accepted ISO 22000/HACCP and HALAAL certifications Technology - The use of modern technology in several production areas. Human Resource management - Marina Company has a sales force close to 100 and they are in the process of making necessary changes to increase the number.

Porters five forces


Threats of new entrants Threat of substitutes Major players can easily enter the industry because of the expertise and they are able to fulfill the capital requirements Demand for sunflower oil and olive oil is high than demand for coconut oil because they are more hygienic Marina produces sunflower oil but they do not give a major place for it and also Marina does not produce olive oil Bargaining power of customer is high because the number of products is high Bargaining power of suppliers is less because there are more firms producing coconut oil High Rivalry among firms Even though the number of non-branded manufacturers is more their products are not in a proper quality than Marina Oil

Bargaining power of customer Bargaining power of suppliers Rivalry among existing firms

PESTEL Factors
Forces Drive Impact on organization From the marketing manager's point of view Political Commodity of necessity Economical Price increase in raw materials Social Offering value for customers money Social Proper segmenting Ability to produce a quality product Price of the product will increase Customer satisfaction increases Customers will be dissatisfied

Ability to give out an Customer satisfaction quality product Good image will be increases Demand for the

of the company
Social Innovations

created
Variety of items increases

products increases
Both demand and satisfaction increases

Forces

Drive

Impact on organization

From the marketing manager's point of Attraction of new view customers

Social

Educational programs

Create a positive attitude towards the company

Social

Promotional campaigns

Creates a positive attitude towards the product

Attract more customers

Technological

Technological advances

Ability to produce a healthy product Ability to produce a healthy product

Customer attraction increases Both demand and satisfaction increases Customers will be dissatisfied

Technological; Doing researches

Environmenta shortage of l coconuts

Delay in production process, decrease in sales and profits

Forces

Drive

Impact on organization

From the marketing manager's point of view -

Legal

Should be
registered

Wont be able to
conduct business If not legal actions would be taken against the company and it will harm the brand name

Legal

Comply with the rules and regulations

Customers will be dissatisfied

Legal

Educate the

If the competitors

Customers will be dissatisfied and the demand will decrease

customers about the claim product is processes & healthiness of the product harmful the brand image will destroy

SWOT analysis
Strength of Marina High quality products and production process. 100% Sri Lankan ownership. Company produce products RBD processes carried physically without using chemicals. Weaknesses of Marina Availability of Marina oil is less. Positioning of Marina is not very much effective. Brand development is also not effective since the awareness is low Opportunities for Marina Trend for edible oil is increasing. People like to buy products which are being produced in their motherland. Threats to Marina Shortage of coconuts supply in the country this is a big threat to the company. If the competitors spread a negative word of mouth regarding the process Marina uses it will harm the image of the company

Key problems faced by the company.


Low awareness of the brand among majority of the oil consumers High priced products Shortage of coconut supply Increasing prices of coconuts Low awareness about the nutritional benefits of Marina products (RBD) Availability of substitutes and rival products Difficulty in changing peoples perception toward some relevant factors ( Coconut oil generate cholesterol, RBD is harmful)

Consumer Surveys
Survey results Out of the sample of 40:
43% were Marina customers and 57% were non-customers 88% ranked the product above 5 out of 10 and rest of 12% ranked below 5 12% of Marina consumers were delighted, 76% were satisfied, 6% were simple satisfied and rest of the 6% were neutral 65% of the non-customers stated they are not aware about the product, 17% stated product is too expensive, 9% stated it is hard to find & rest of the 9% stated that the product is not healthy 53% preferred cooking oil, 27% vegetable oil, 15% olive oil, 2.5% palm oil & the rest 2.5% preferred soybean oil 68% of the sample are not aware about the nutritional benefits of Marina oil 27.5% preferred to reuse while 72.5% doesnt prefer to reuse 78% of the sample responded that the communication mean affect their purchasing decision while 22% stated that it does not affect

Consumer Buying Behavior


Psychological factors Motives Safe consciousness Consumers seek for nutritional benefits and products that are certified by international standards Satisfaction by achieving self-esteem Gaining attention towards the products by positioning through smart housewives concept Learning and knowledge Extra cautiousness of products consumers are cautious about the ingredients and the technology used in the production process Attitudes Negative attitude towards coconut oil because it is said that coconut oil generate cholesterol in human body People think reusing oil is not good for health

Consumer Buying Behavior


Cultural factors Beliefs Customers believe Marina is nutritional than other oil products Values Being an established brand as a local product Social factors Social class primary target of Marina are middle and upper level income holders Family influence Concept of smart women is beneficial in attracting female consumers Personal factors Gender Marina oil is considered to be a choice for both male and female consumers Age Housewives and teenagers who are interested in cooking Income Marina product can be afforded by middle and upper income holders. Some of the customers purchase rival products because of the expensiveness of Marina oil

Competitor Analysis
Marina has two types of competitor: Branded oil & Non-branded oil suppliers Price Price of Marina oil is the highest when compared with the others and the price of non-branded oil is the lowest Product portfolio Marina & fortune has a vast range of products while NJoy & non-branded oil produce only coconut oil Target customers Marina targets middle and high income holders, Fortune & N-Joy targets average income holders Quality All the branded products are in good quality but Marina is ahead of them all Certifications Marina has obtained several certifications rather than the competitors Distributional channels Marina distributes their products mostly through super markets and some selected retail shops Promotional effectiveness Promotional effectiveness of Marina is not very effective Available quantities Number of quantities available in Marina is high

Segmentation Targeting and Positioning

Segmentation
Influences by different bases in segmenting the market

What is the most profitable segmenting base for Marina????

Targeting
Measuring the attractiveness of the segment
Criteria Market size Market growth Segment 1 High High Segment 2 Medium Medium Segment 3 High High

rate
Market attractiveness Customers bargaining power Number of Medium Medium High Medium Medium High

competitors
Bargaining of supplier Company In line with the Not in line, might Not in line, power Low Low Low

objectives and
resource capabilities

resources

need
changes.

slight need
changes

slight

Target Marketing Strategies


Differentiated Market Mass Market

Positioning
How Marina occupies a place in consumers mind????? Positioning map

Marketing Mix
Product
Industry Market Product 01 Housewives and Culinary knowledge seekers Product 02

Price
Premium targeting higher and middle level income holders Whole sellers and retailers are benefited through a margin gain

Place
Distributed through super markets and general trade (selected no of retail shops)

Promotion
Facebook fan page TV advertisement Culinary TV programs and exhibitions Ex: Rasasaraniya

Recommendations
Branding and Packaging Simplicity - A simple way of conveying the message to the customers. Quantification of results in th- results of several researches

For 4 Ps
Product -Concentrate on producing other types of oil -Make some attractive changes to affect on immediate purchase. Price - Pricing the product in an affordable manner for all types of income holders.

Place - Widening up the distribution channel to all retails stores. Promotion -Telecast attractive advertisements to position the Product regarding the RBD process through celebrities. - Frequently update the Facebook fan page - Provide samples in culinary ehxibitions -Maintaining Point of sale displays in other locations of the shops.

List of References
Company Activities. 2014. Company Activities. [ONLINE] Available at:http://www.adamjeelukmanjee.com/cactivities.html. [Accessed 17 March 2014]. Marina Cooking Oil,Coconut Oil, Cooking Oil Producer Sri Lanka. [ONLINE] Available at: http://www.marinacookingoil.com/. [Accessed 17 March 2014]. Fortune Cooking Oil, Edible Oil, Vegetable Oil, Cooking Oil Brands, India. 2014. Fortune Cooking Oil, Edible Oil, Vegetable Oil, Cooking Oil Brands, India. [ONLINE] Available at: http://www.fortunefoods.com/. [Accessed 17 March 2014]. Industry Life Cycle - Encyclopedia - Business Terms | Inc.com. 2014. Industry Life Cycle Encyclopedia - Business Terms | Inc.com. [ONLINE] Available at:http://www.inc.com/encyclopedia/industry-life-cycle.html. [Accessed 17 March 2014]. Turkey Oil - East West Marketing . 2014. Turkey Oil - East West Marketing . [ONLINE] Available at: http://www.ewm.lk/?fmcg-sbu=turkey-oil. [Accessed 17 March 2014]. Segmentation, Targeting, and Positioning. 2014. Segmentation, Targeting, and Positioning. [ONLINE] Available at:http://www.slideshare.net/mehmetcihangir/segmentation-targetingand-positioning-presentation. [Accessed 17 March 2014]. 4 major factors that influence consumer buyer bahaviour - SuperProfesseur.com : spcialiste du soutien scolaire, des cours particuliers et de la formation professionnelle. 2014. 4 major factors that influence consumer buyer bahaviour - SuperProfesseur.com : spcialiste du soutien scolaire, des cours particuliers et de la formation professionnelle. [ONLINE] Available at: http://www.superprofesseur.com/19.html. [Accessed 17 March 2014].

Thank you!