Cooking Oil Company in India

2579 words (10 pages) Essay

17th Jul 2017 Marketing Reference this

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INTRODUCTION ABOUT THE TOPIC

Cooking oil is purified fat of plant origin, which is usually liquid at room temperature (Saturated oils such as coconut and palm are more solid at room temperature than other oils).

Some of the many different kinds of edible vegetable oils include: olive oil, palm oil, soybean oil, canola oil, pumpkin seed oil, corn oil, sunflower oil, safflower oil, peanut oil, grape seed oil, sesame oil, argan oil and rice bran oil. Many other kinds of vegetable oils are also used for cooking.

The generic term “vegetable oil” when used to label a cooking oil product refers to a blend of a variety of oils often based on palm, corn, soybean or sunflower oils.

Oil can be flavored by immersing aromatic food stuffs such as fresh herbs, peppers, garlic and so forth in the oil for a period of time. However, care must be taken when storing flavored oils to prevent the growth of Clostridium botulinum (the bacteria that produces toxins that can lead tobotulism).

Product Origin: India

Description:

Pandey Groups Ltd. (PGL), a Rs. 2700 crore company; is a joint venture between two global corporations.

Somya Refined Soyabean Oil is light, odorless and healthy oil. Most importantly it contains OMG3 (Omega – 3 fatty acids) – an essential PUFA which needs to be supplemented from outside sources. Soyabean oil is the preferred oil of many a household across the world.

Somya Refined Soyabean Oil, enriched with OMG3, gives you and your family ‘Paanch Ka Aashirwad

Company Name : Pandey Groups Limited

Address : Gujarat, India

Tel : 91- 9855021213 Fax : 91- 11-2201055

Website : http://www.pandeygroups.com

The IMC Plan

Situational Analysis:

Past promotional Situation

Somya Oil PLC is the holding company for a group of companies whose principal activities focus on Eidable oil supply in India. On July 15, 2005, the Company acquired Sona Ediable Company Limited and its subsidiaries. In October 2005, it disposed all interests in Making all types Of Ediable Oil.

Product Situation (Quality,Packaging,Price,image,availability,Feature,Unique Selling point)

Somya Edible Oil Exports In Consumer Packs

Pandey groups Ltd, which is into trading and refining of edible oils, is now planning to supply consumer packs of ‘Somya’ edible oil in india upto 2010.

At present, the company is supplying loose packs of edible oil to these countries and plans are afoot to increase export capacity of loose packs of edible oil from 2,000 metric tonnes to 5,000 metric tonnes as well this year..

Pandey Groups is also planning to increase its capacity to produce ‘Savarg’ vanaspati from 100 metric tonnes to 300 metric tonnes.

After marking its presence with Somya refined oil in the northern, western and eastern markets, Pandey Groups is now planning to strongly focus on the southern market, specifically Karnataka, Andhra Pradesh and Tamil Nadu this year to widen its distribution reach.According to Pandey Groups Ltd general manager (marketing and sales) Sahil Sharma: “As part of the distribution strategy, we are now planning to expand our number of offices from 65 to 80. In addition, we will double the number of existing 1,800 distributors, three lakh retail outlets and 600 super stockists within a year. In the southern market, we have recently created 10 stockpoints (company’s own branches) to spur more volumes of Fortune edible oil.” Besides, Pandey Groups is planning to foray into the speciality fat oil category which will be introduced in the Indian market in consumer packs under the umbrella brand name Somya this year.

Audience Situation

Paneer, pakoras and more

1.

One of the ads, titled Railway station, is about an elderly couple making a train journey. The husband realises that his wife hasn’t prepared the customary ‘pakoras’ for the journey this time. Forgetting the he was supposed to arrange for a taxi, he busies himself in preparing the pakoras when his wife offers to make them. The couple miss the train due to the delay, but share a mischievous moment on the platform when they gorge on the pakoras.

2.

The second commercial is about a young man who lives away from home with a group of friends. He steps home after his day at work and reaches for some stale pizza; his sister calls him just then, asking what he is having for dinner. He cooks up a story, telling her he’s having ‘muttar paneer’ – just so that she doesn’t feel bad about his eating habits away from home.

His sister then reprimands him on why he didn’t leave his dirty shoes out at the door, to which he turns around to see that his sister has actually brought him some home cooked food.

A third film is on its way. Apart from the commercials, the campaign consists of a mix of press, hoardings and bus shelters. Radio is specifically to be used in Tamil Nadu.

Of the total budget, Fortune has allotted about 15 per cent to outdoor, while 10 per cent and 5 per cent will go to press and radio respectively. A huge 70 per cent of the budget is directed to TV and electronic media. National and regional channels are being employed.

Competitive Situation

Pandey Groups is the leader in edible oil. But it now wants to carve out a bigger slice of the pie by focusing on sunflower oil, which accounts for a big chunk of the edible oil market, through its Somya brand.

Competitive Analysis

In competitive analysis I found that there is great competition in the existing players like Saffola oil, Sunflower oil, Fortune oil, Ginni Oil, King’s oil, and Raag oils. I have do something different to survive in this competition like:

  • A strong Heart
  • The Healthy Growth of your Children
  • Controlling Diabetes
  • Healthy Eyes

Marketing segmentation:

· Somya has segmented its market on the basis of following:

Demographic

  • Income
  • Occupation

Geographic

  • Tier 1 cities
  • Tier 2 cities

Psychographic

  • Life style
  • Personality

Behavioural

  • Value
  • Benefit Sought

So, this is a market segmentation of the Somya Oils that we give more importance to tier 1 cities that are metro cities. And we prefer the high level people and middle level people because this level of people are health conscious.

Targeting

Somya oil has targeted its market on the basis of the product that they are offering to the consumer.

We are targeting:

  • Upper class segment
  • Upper end
  • We are targeting to those consumer who are more concern of life style product.
  • Our product is ore of upper mid class and premium segment, so we are targeting audience are those consumer,, who want Healthy Product which gives them fitness at reasonable price
  • We are also targeting those consumers, who are more concern of safety and health issue.
  • We are now going to shift over to mind mid or lower mid class segment and want to mass market their product.

SWOT Analysis

(S)trengths

  • Demand of new technology.
  • Manufacturing unit having good supply of raw material and Transportation System. “Gujarat.”
  • Wide range of product to tap the consumer of middle class, upper class and high class.
  • We think to launch our widest distribution network.
  • Shifting to rural marketing.

(W)eaknesses

  • Our product are compared with our competitor like Fortune, Saffola etc.
  • Similar product categories as compare to its close competitors like king’s and Raag.

(O)pportunities

  • Shifting to rural market.
  • Food oil market is growing very fast, so there is an opportunity for Somya to launch more new products.

(T)hreats

  • Price war.
  • New entry in this segment.

Positioning Strategy

  • With the tagline “Paanch Ka Aashirwad ” Somya positioning is to differentiate our product on the basis of technology which appealed to the consumer on the basis of health benefits.
  • With this tag line its corporate philosophy to make to attract towards our product.
  • Our positioning strategy are technological intelligent and futuristic.
  • As we are in upper and premium segment, so we are featuring that their brand is young, vibrant and premium.
  • We have differentiate our product using technology and health benefits.

Competitive Analysis

Market Share

  • The market share and data show that Somya is not in the list because it is a new company in the electronic field.
  • The target audiences for the other companies are very high as compare to Somya
  • Product categories are more or less same.
  • Close fight for the product is in the companies.

Marketing Strategy

  • The marketing objective of Somya, aims to focus on the premium segment of the market that fetches greater margin opposed to volumes.
  • We want to capture 20% market share, by the end of 2011.
  • We want 5% sales growth in each segment of our product.

Corporate Strategy

  • Somya corporate strategies is to more focus on innovation to attract more technology savvy consumer and the company is aspiring for – keep innovating.
  • Somya corporate strategy is to become a true global leader through fast growth and fast innovation.
  • Somya has set its mid-term goal to rank among the top edible oil Company in the world.
  • Somya would concentrate on staying ahead of the technology curve and develop products that deliver high value to consumers.

The Marketing Background

S. No.

Key Considerations

Questions

1.

Product Descriptions

Cooking oil

2.

Market Assessment

There are some global players in market like Fortune, Saffola, Ginni, Sunflower.

3.

Source of Business

We are coming from tiers 1 cities and tier 2 cities and rural areas.

4.

Competitive Evaluation

Somya offers freshness and technological strong

5.

Marketing Objective

Focus on Health innovation to attract consumers and the company is aspiring for keep innovating.

6.

Marketing Communication

Marketing Communication helps Somya to create a strong and positive brand attitude and influence consumer to do action in future.

The Key Target Audience Worksheet

  • Our sale and usage comes from metros urban and rural market.
  • The marketing objectives required continue usage.
  • Refers to Segmenting, Targeting and positioning analysis.
  • Decision makers are the head of the family.

Communication Objective

  • To communicate the health plus objectives.
  • To communicate that the brand is young, vibrant and premium.
  • To hit the emotions of the Indian consumers by showing the warmth and affection.

Brand Attitude Strategy:-

Cooking Oil (Food) product is high involvement product, and consumers require information before purchasing the product. So, to influence the attitude of the consumers, Somya oil need to focus on the communication message, this is helpful to create a positive brand attitude.

The communication objective of Somya Oil is to influence the target audience to do purchases.

The Behaviour Sequence Model

 

Decision Stages

Consideration at each stage

Need Arousal

Information search

Purchase

usage

Decision roles involved

Category need

Product awareness

Purchase Facilitator

Benefit of the product

How is it likely to occur

Brand awareness

Product information

———-

————

Timing of purchase

———-

Competitive product information

Offer discount

———–

Where purchase is likely to occur

————

———–

Company outlets, MBO’S

———–

Budget

As a team, Somya oil decided that we should go ahead and plan out the entire IMC campaign exactly how we wanted it to turn out, before we worried about any of the budget. This is referred to as a bottom-up budget, which means that we, the creative team have decided what we would need for the budget and have sent the budget for approval.

Media Mix

For the media mix of our product’s campaign we decided to do one television ad and one magazine ad. Because our product is an Cooking Oil we felt it would be more appropriate to reach our target audience through these means of advertising.

Our television advertisement will be in the form of a thirty-second commercial. Showing the commercial at the prime time would help reach our ideal target audience. Our budget will allow about 2,50,000 for the pre-production, production, and post-production of our commercial advertisement. In order to buy advertising space, we allotted 150,000 per thirty-second spot. To achieve our communication objective, the commercial will air twice during each thirty-minute program on Sunday evenings for the duration of one month.

The magazine advertisement we have chosen for our project will not be costing us nearly as much. Each of these magazines is a monthly publication. This helps reach our target audience because our customers must be housewives.

Cost of TV Ad

Prime Time: 6-11pm

Channels: Top e.g., Geo, AAJ, PTV, Sony, Star Plus, Zee Tv etc.

Cost in Prime Time: Rs. 70,000/min

Cost in Off-peak time: Rs. 25,000-30,000/min

Cost of Billboard

Size: 2700 Sq. ft

Skin: Rs. 54,000

Rent for 1 month in Cat-A1 area: 600,000-1,000,000

Cost of Hanging Hoardings

Size: 5ft x 2 ft

Cost: Rs. 150/hoarding

Rent in Cat-A1: 1,350/week

Cost of Poster

Paper weight: 135 gram

Size: 18inch x 23inch

Quantity: 3000 @ Rs. 4.15/poster

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