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Marketing Project Report on

“ANKUR PROTEIN INDUSTRIES”

Submitted To:

Professor Belur Baxi

Submitted by:

Sneh U. Desai

ROLL No - 40

SYBBA- A

N.R. Institute of Business Administration

Ahmedabad – 380 006

2011-2012

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N.R. INSTITUTE OF BUSINESS ADMINISTRATION

GLS Campus, Mardia Plaza Lane, Off. C.G. Road, Ellis bridge, Ahmedabad-380006, Phone: 26430373

CERTIFICATE

This is to certify that the Marketing Report based on the visit to “Ankur Proteins Industries” is submitted by Mr. Sneh Desai to N.R. Institute of Business Administration, affiliated to Gujarat University, in the partial fulfillment of the requirements for the completion of “Practical Studies” in the area of Marketing Management at the Second Year of the B.B.A. Program for the year 2011-2012.

___________ _____________ _______________

Director Prof. in-charge External Prof.

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Date: 13/01/2012

Acknowledgement

I am highly thankful to the management staff of Ankur Protein Industries. I am especially thankful to Ms. Khetani & Mr. Vijay Prajapati for helping me in my “Practical Studies.” In addition to allowing me to visit the company and study the organization, they provided me with the details which were useful in preparing the report.

In addition to thank our Director, Prof. Avani Desai, Professor in-charge, Prof. Belur Baxi for their encouragement and the office staff for providing us all the facilities for making the financial report exercise more learning oriented.

Sneh U. Desai

Date: 13/01/ 2012

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INDEX

CHAPTER NAME OF THE CHAPTER PG. NO.

1 COMPANY PROFILE

1.1 NAME OF THE COMPANY 8

1.2 LOCATION OF WORKS & REGISTERED OFFICE 8

1.3 MAIN BUSINESS OF PRODUCT RANGE 9

1.4 FORMS OF ORGANIZATION 9

1.5 BRIEF HISTORY OF ORGANIZATION 10

1.6 MISSION 11

1.7 BUSINESS PHILOSOPHY 11

1.8 FINANCIAL INFORMATION 11

1.9 EXISTING MANAGEMENT GROUP 12

2 MARKETING

2.1 ORGANISATION OF MARKETING DEPARTMENT 13

2.2 PRODUCT PLANNIG 14

2.2.1 PRODUCT RANGE 15

2.2.2 PRODUCT LINE AND MIX 17

2.2.3 PRODUCT DECISION 18

2.2.3.1 BRANDING 19

2.2.3.2 PACKAGING 20

2.2.4 NEW PRODUCT DEVELOPMENT 20

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2.2.5 PRODUCT LIFE CYCLE STAGE 21

2.3 MARKET SEGMENTATION 22

2.4 PRICING 23

2.4.1 FACTORS CONSIDERD WHILE SETTING PRICE 23

2.4.2 PRICING APPROACHES 23

2.5 CHANNELS OF DISTRIBUTION 24

2.5.1 TYPES 24

2.5.2 DECISION ABOUT CHANNELS 24

2.6 SALES PROMOTION, PUBLIC RELATION AND PERSONAL SETTING

25

2.6.1 SALES PROMOTION TOOLS AND PROGRAMMES

26

2.6.2 SALES PROMOTION TOOLS AND DECISIONS 26

2.6.3 SALES FORCE MANAGEMENT 26

2.7 ADVERTISING 27

2.7.1 OBJECTIVES 27

2.7.2 SETTING BUDGETS 27

3 FINDINGS 28

4 SUGGESTIONS 29

5 CONCLUSION 30

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The Indian edible oil market is fourth largest in the world after USA, China and Brazil. As the population of India is increasing day by day, so consumption of food will also rise. Oil is needed almost everywhere in cooking whether it would be in a lesser quantity or higher quantity. Each year nearly 10 million tons of oil is consumed by India. There are various types of oils like groundnut oil, cottonseed oil, soya bean oil, sunflower oil, mustard oil, coconut oil, olive oil, sesame oil, corn oil, palm oil, etc.

Government of India has allowed mixing something in oil up to some extent but many manufacturers take an undue advantage of it by mixing some other product with oil other than that allowed by government. Consumers are often cheated by providing them adulterated oil and not pure oil.

Edible oil market in Gujarat is very old. People in Gujarat are very much fond of food. They love to eat tasty food and specially fried food. But people here are also think much about price. Mostly groundnut oil, cottonseed oil, sunflower oil and soya bean oil are used. Due to high price of groundnut oil people have changed their preference to other oil which are less costly comparing to groundnut oil. Nowadays people are more aware about their health which has resulted in change in their cooking styles. People make quick changes to one brand to another in terms of quality, price, packaging, etc.

PURPOSE OF VISIT.

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The purpose of visit was to get some knowledge about how marketing objectives play role in real situation. To get the importance of sales promotion, advertisement, setting budgets for marketing a product. Various sales promotion strategies may work or may not work.

This visit has given knowledge about the production of oil and its process, how the oils are marketed, which are the factors considered for setting the prices of different oil products.

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1.1 Name of the company.ANKUR PROTEIN INDUSTRIES

1.2 LOCATION OF WORKS AND REGISTERED OFFICE.

Location Of Work : ANKUR PROTEIN INDUSTRIES Panchratna Estate, Opp. Bhagyoday Hotel, Sarkhej-Bavla Highway, Changodar - 382210, Gujarat, India Phone:91- 2717-2502 20/21Fax:91-2717-250410/250221

Regd. Office : ANKUR PROTEIN INDUSTRIES 417/1, Chokha Bazar,

Kalupur, Ahmedabad , Gujarat, India.

1.3 MAIN BUSINESS AND PRODUCT RANGE.Ankur Protein Industries mainly manufactures, lends and sells edible oil.

This company specifically is more involved with blending and purifying oil from raw oil.

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The company purchases raw oil from various oil millers who crush oil seeds and extract oil from it. Mainly they get their raw oil from Kadi, Palanpur, M.P, etc. This raw oil is then further purified and sold in the market.

Following is their main product range:

1.4 FORM OF THE ORGANIZTION.

PARTNERSHIP FIRM

Definition : Partnership is a system in which 2 or more persons start a business for profit and it is carried on by all or any of them acting for all.

Groundnut Oil

Cottonseed Oil

Soya bean Oil

Castor Oil Sunflower Oil

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1.5 A BRIEF HISTORY.Ankur Protein Industries Ltd. was established before 15 years. Initially it

was started with only the production of groundnut oil as it was the only oil which was in high demand during that time.

Moti Protinex Industries Ltd [MPILs] was incorporated on December 31, 1992 at Ahmedabad & obtained the certificate of Commencement of Business on January 4, 1993 from the office of Registrar of Companies, Gujarat, Ahmedabad.

MPIL proposes to set up a fully automatic & continuous, integrated oil complex for manufacture of refined edible rapeseed oil for domestic market & de-oiled cakes for export market.

The company has in fact already started manufacturing activities from 15th July, 1993, on Job work at Shree Western Gum and Chemicals Industries, Naroda, Ahmedabad. The products are marketed under the registered brand 'APPU' & 'GUDDI'.

This strategic move of company to get production done on job work will help them in creating the product image & also to generate cash accruals. With this it will be easy for Comp. to penetrate the market for De-oiled cakes & Edible Refined oil, to be manufactured in the company own manufacturing unit.

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1.6 MISSION.Mission statement defines the fundamental purpose of an organization or

an enterprise, describing why it exists and what it does to achieve its vision.

Mission Statement : “Consistently providing the best products and services to their valuable customers.”

1.7 BUSINESS PHILOSOPHY.

“Providing the best quality products in terms of Purity, Smell of the oil so as to maintain their Brand Value.”

1.8 FINANCIAL INFORMATION.Turnover of Ankur Proteins Industries is around 400cr. per annum.

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1.9 EXISTING MANAGEMENT GROUP.

Ankur Protein Industries Ltd. is a partnership firm and Mr. Pradip Khetani and Mrs. Jyotsna Patel are two partners. This hierarchy is followed by four marketing managers Mr. Bharat Patel, Mr. Ramesh Patel, Mr. Magan Patel and Mr. Dinesh Khetani.

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2-1 ORGANIZATION FOR MATKETING DEPARTMENT

2-2 PRODUCT PLANNING.Product planning is a very aspect that is to be taken into consideration

before launching of a new product into the market. Any company cannot just launch a product which they think that it will work. A proper market survey is needed to be done.

Other Oils

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Edible oil market has to face some remarkable change in consumer taste and preferences because of high price and also because of awareness regarding their heath in last 5 years. Also to survive in such an intense completion where every company wishes that only their product should rule the market. Competitors in the market are also to be considered while forming any plans regarding product. Price of our product should be competitive enough against the price of our competitors.

Following are some of the competitors of Ankur Proteins Industries : Gokul Oil Tirupati Oil Sweekar Oil Gemini Oil Fortune Oil Dhara Oil

These are some of the major names in the edible oil market which can give a tough competition in market, to overcome this competition product planning must be done very accurately. All the above factors like consumer taste, preference, choice, price, competitors, market scenario are essential to be taken into consideration.

2-2.1 PRODUCT RANGE. ANKUR GROUNDNUT OIL: Groundnut oil is considered to be the best

in quality in terms of purity, taste, smell. Gourmand or taste seekers would always prefer for groundnut oil although its price is quite high in comparison to other oil available in market.

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ANKUR COTTONSEED OIL: Cottonseed oil can be considered to be a substitute to both groundnut oil as well as sunflower oil. It is a well balanced oil with qualities of both.

ANKUR SUNFEAT OIL (SUNFLOWER OIL): It is mainly targeted to

health concern people. These consumers are not much concerned about taste. They are more conscious about their health.

ANKUR CASTOR OIL.

Production Process :

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First, the oil seed is crushed and then oil is extracted from it. This raw oil is then sent to various laboratory tests. If the lab tests is passed then it is further processed to a tank where this raw oil is separated from impurities. Then it is sent for bleaching process. After finishing the process of bleaching process it is then filtered to remove the impurities then it is purified by boiling so those impurities which were not removed can be removed. Finally this pure oil is sent to storage tank. At last as per the requirement oil is packed in different quantities.

2-2.2 PRODUCT LINE AND MIX.

Seed is Crushedoil is extractedraw oil obtainedLab test Separation of impuritiesBliching of oilFilterationBoiling of oilStorage tankPackaging

15Ltr. TIN CAN. 5Ltr. PLASTIC CAN. 2Ltr. PLASTIC BOTTELS. 1Ltr. POUCHES.

ANKUR GROUNDNUT OIL

15Ltr. TIN CAN. 5Ltr. PLASTIC CAN. 2Ltr. PLASTIC BOTTELS. 1Ltr. POUCHES.

ANKUR COTTONSEED OIL

15Ltr. TIN CAN. 5Ltr. PLASTIC CAN. 2Ltr. PLASTIC BOTTELS. 1Ltr. POUCHES.

ANKUR SUNFEAT OIL

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2-2.3 PRODUCT DECISIONS.

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Product decision plays a very essential role in deciding fate of any product. Deciding the correct time for launching of a new product is very important to sustain in market.

Another important role is played by season because oil industry is based on seasons. Implementing planning as per the correct season is essential. Favorable market condition is January-March/April for Ankur Proteins Industries during peak season their sales becomes more than double.

Taking into consideration, change in the market scenario where consumers are now more aware about heath, Ankur Proteins Industries have launched their new product of sunflower oil “ANKUR SUNFEAT” before 6 months or so. Also the rise in price has made restaurant to switch over to soya bean oil. So these are some of the factors that should be considered.

2-2.3.1 BRANDING.

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Branding is basically to create awareness, to attract people about your product. A company should create attraction of their product at such a high level that people should get compel to purchase their product only.

Tagline of product plays a vital role in attracting consumers to purchase a product.

Following are the taglines used by Ankur Proteins Industries:

Ankur Groundnut Oil – “SWAAD KA JAADU” Groundnut oil is considered to be the best in quality in terms of purity,

taste, smell. Gourmand or taste seekers would always prefer for groundnut oil although its price is quite high in comparison to other oil available in market. So the tagline is quite apt.

Ankur Cottonseed Oil – “BOOND BOOND ME HEALTH” Cottonseed oil can be considered to be a substitute to both groundnut oil as

well as sunflower oil. It is a well balanced oil with qualities of both. So the tagline is quite apt.

Ankur Sun feat Oil – “SUNFEAT TO SAB FIT” It is mainly targeted to health concern people. These consumers are not

much concerned about taste. They are more conscious about their health.

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2-2.3.2 PACKAGING.Ankur Protein Industries does packaging for all of their products by them

self. This is an added benefit to them that they don’t have to rely on any other. As per the requirement packaging can be done. Approximately 70 tons of daily packaging is done. There are various packaging according to measurement: 15ltr tin cans. 5ltr plastic cans. 2ltr plastic bottles. 1ltr pouches.

2-2.4 NEW PRODUCT DEVELOPMENT.Ankur Protein Industries has launched a new product of sunflower oil

“Ankur Sun feat” before 6 months. This product has to face awareness by the consumers as there was no marketing done by the company.

Company is also planning to launch of a new product of corn oil, but this is in a very initial stage of thought.

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2-2.5 PRODUCT LIFE CYCLE STAGE.PRODUCT NAME PRODUCT LIFE CYCLE STAGE

Groundnut Oil Maturity StageCottonseed Oil Growth StageSunflower Oil & Soya bean Oil Introduction Stage

Introduction Stage: In this stage new product is first made available in the market. Customers are few, competition is less, sales are low and risk is high. It is an expensive stage and of high risk.

Growth Stage: If the buyers are satisfied with the product and sales start rising rapidly as users of the product increase. This results increase in competition and profit.

Maturity Stage: The sales stabilize at the definite level in the market. Border line companies are thrown of the market.

2-3 MARKET SEGMENTATION.

MARKET

COMMERCIAL DOMESTIC

GENERAL PUBLIC HEALTH CONSCIOUS TASTE SEEKERS SUBSTITUTE USERS

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Edible oil market is majorly divided into two parts.

1) COMMERCIAL2) DOMESTIC

Commercial market includes mostly restaurant owners who generally use soya bean oil due to its cheap price. Domestic is further divided into general public, health conscious, taste seekers and substitute users. General public is that segment which is not concerned with any specific oil, they can consume any oil available. Health conscious people consume only that oil which is beneficial for their health like sunflower oil. On the other hand there is a market segment of taste seekers or foodie people who are quality oriented, they do not get affected by high price of oil and groundnut oil is one such oil which has a very high quality. Then comes another group of market of substitute users who have a mix tendency of health conscious group of market and taste seekers group of market. So they opt for cottonseed oil.

2-4 PRICING.

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2-4.1 FACTORS CONSIDERED WHILE SETTING PRICES.

Competitors’ Price. Current Market Scenario. Transportation Cost. Packaging Cost. Marketing Cost. Production Cost.

These are some of the major factors which are taken into consideration while setting price for different oil products and various other factors like location, raw material, etc.

2-4.2 PRICING APPROACHES.Ankur Proteins Industries charge competitive price and also gives some

discount to customers.

Packing Price of Groundnut Oil (in Rs)

Price of Cottonseed Oil (In Rs.)

15 liters 1750 15005 liters 675 4501 liters 120 100

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2-5 CHANNELS OF DISTRIBUTION.

2-5.1 TYPES.Ankur Proteins Industries neither practice any wholesaling nor retailing.

They have implemented direct marketing.

Direct Marketing: It is the channel where company sells it s products directly to customers. This channel of distribution is generally includes:

1) Selling Agents2) Internet Sales

2-5.2 DECISION ABOUT CHANNELS.As Ankur Proteins Industries do not encourage practice of both

wholesaling and retailing but they do have some stockiest for some regions. They distribute their entire product from their office at Kalupur.

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2-6 SALES PROMOTION, PUBLIC RELATIONS AND PERSONAL SELLING.

2-6.1 SALES PROMOTION TOOLS AND PROGRAMMES.

Ankur Protein Industries has opted various sales promotion tools for increasing their sales in market.

They have titled a cookery show “Rasoi Show” on ETV Gujarati. Their products are provided with various other products like toothpaste, soap,

shampoo, hair oil, etc. for free. Hoardings, newspaper advertisement, TV advertisement, radio advertisement,

are also used. Direct discount is given to their customers in malls and especially in Star India

Bazar.

2-6.2 PUBLIC RELATION TOOLS AND DECISIONS.

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Their public relation is very good because they have opted for direct marketing due to this they can easily get customer’s feedback They share a very healthy relationship with their customers as their prime focus is customer satisfaction.

2-6.3 SALES FORCE MANAGEMENT.There are 5 marketing managers may be according to area. Each manager

has 10 salesmen under him.

2-7 ADVERTISING.

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2-7.1 OBJECTIVES.Any firm’s main objective is to make maximum profit. This can get

possible if awareness of new or even existing products is created to public.Advertisement has become an essential part of market nowadays. Any

company to survive in such market condition it is very necessary for them that their product should be sold anyhow. Whether a product already exists or it is a newly launched or it is going to be launched people should be made aware about it. Hype should be creating to such an extent that they should buy that product.

Various types of advertisements are done on television, radio, newspaper, hoardings, etc.

Taglines also attract people:

Ankur Groundnut Oil. – Swaad Ka Jaadu. Ankur Cottonseed Oil – Boond Boond Me Health. Ankur Sun feat Oil – Sunfeat To Sab Fit. In case of Ankur Sunfeat i.e. sunflower oil people are not much aware. So this

is due to less advertisement done, therefore lack of advertisement is found.

2-7.2 SETTING BUDGETS.Ankur Protein Industries spends around on an average Rs. 30 lacs.

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Ankur Protein Industries is a well established firm. Transportation is done by roadway for which they have their own trucks. Through this if delivery is also at any remote place it can be easily done.

They should come up with new product at a right time. Many of their rival companies have already launched corn oil but they are still thinking to launch.

They should increase their selling across the nation and not just majorly in Gujarat state.

They have their own packaging production, so it is very beneficial for them that they do not have to rely on others.

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Ankur Protein Industries should emphasis more on advertisement and in television advertisement also not only in Guajarati channels. It should also go to other channels.

They should also try giving their new product as a sample with their existing product for survey purpose.

They should also try for some social activities so as to increase their sales. This could turn out to be very effective as word of mouth publicity is very fast to spread in market.

Visiting Ankur Protein Industries was a worth experience. The main purpose of this visit was to get glimpse of marketing theories are put into practice. It has covered almost all the aspects of marketing like product planning, pricing, branding, advertisement, development of new product, choosing correct target

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market, wholesaling, retailing, various sales promotion tools like advertisement, giving discounts, hoardings, etc.