likhin final

7/28/2019 Likhin Final

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Introduction

Marketing is the process used by an organization to develop an overall product market

strategy. Modern marketing concept lies in the fact that the business should be directedtowards the satisfaction of the consumers. Now the consumer has become the key factor that

determines the success or failure of any organization. A satisfied customer is the biggest asset

of the organization. The success or failure of the product in the market often depends on the

ability of the markets to correctly perceive and predict the dynamic nature of the consumers.

So modern marketing requires a thorough understanding of consumer behavior and buying

motivations.

Consumer behavior reflects the totality of consumer decision with respect to

acquisition, consumption, and disposition of goods, services, time and ideas by decision

-making units. It also include whether, why, when, were, how, how much and how often and

how long consumer will use or dispose of an offering. To understand the consumers are not

early jobs as his behavior is mostly unique and unpredictable. This has made the terms to step

in to the shoes of the consumers and understand from the point of view selection and

purchase of products and services. Marketers need to identify the end-users of the product,

services and frame marketing plans than considering the wholesalers and retailers who

actually are the intermediaries in the process of purchase. Marketers therefore should

consider the consumers and then develop their plans of action. Here lies the essence of

marketing. Consumer is the king and all actions should start with this notion in mind.

Sterling Coconut Oils & Cakes (P) Ltd. Thrissur, popularly known as Thanima is a

private enterprise. Thanima was established with an objective to produce, supply and export

fresh and pure coconut oil. The company strictly follows the quality standards prescribed by

AGMARK and ISO 9001:2000 Certification to take on the challenges of globalization and

international quality standards. Thanima focused on a stable and reasonable return to their

produce by integrating the activities of production, processing and marketing. They converted

coconut, into value added products like copra and coconut oil and marketed it. There is better

satisfaction emphasis is that better the marketing, better the return to the company to

consumers.

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Coconut oil is extracted from the kernel or meat of matured coconut harvested from

the coconut palm (Cocos nucifera). It has various applications in food, medicine, and

industry. What make coconut oil different from most of other dietary oils are the basic

building blocks or fatty acids making up the oil.Being one of the healthiest oils on earth, it is

used to treat a wide variety of health problems. Coconut oil improves immune system and

energy level, stabilize blood sugar, improve thyroid function and it tastes great, too.

Statement of the problem

In todays competitive environment companies are realizing that marketing is not only

the voice of the company but also tool with which information feedback can be collected

from the consumers for the marketers. It is important to recognize why and how individuals

make their consumption decisions, Thanima is facing stiff competition from other major

brands such as KPL Shudhi oil, Kera etc. Hence in order to adopt new marketing techniques

for increasing sale it is desirable to study the preference of customers towards coconut oil.

The changing food habits and consumer preference of Keralities have opened a new

opportunity for the marketing of coconut oil in the Kerala state. People may not think much

about branded coconut oil vs. unbranded one as they are not aware of it or they feel that its

of high price. But once they experience the quality of the branded product, they will be

converted. There are many advantages the branded coconut oil have over unbranded one

good quality, better packing, healthier, avoiding refined carbohydrates, increased keeping

quality and consuming whole foods etc.

The household consumers of Kerala are not only health conscious but also price

sensitive. The propensity among the consumers to shift from the consumption of coconut oil

to other edible oils is high when coconut oil price rise above the price of other edible oils.

Being a product of Kerala itself, Sterling Coconut Oil Cakes & Mills (P) Ltd., have the

responsibility to take adequate measures to sustain and promote the household consumption

of coconut oil. The study explored the product related attributes (fragrance, flavor, durability

etc) and market related attributes (price, size, package, availability, etc) of coconut oil in

order to provide adequate insight for taking future decisions by Thanima.

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However the marketing of coconut oil in the state still remains less studied. Some

case studies are mentioned here.

Price behavior of major edible oils consumed in the households of Kerala and

promotional strategies of Coconut Development Board. The study found that there are

fluctuations in the prices of coconut oil, palm oil, and sunflower oil. Due to various external

factors like changes in the world production and demand of these oils, changes in the

climatic conditions in the producing countries and internal factors namely import duty

charged by the government, production of oil seeds etc.

Consumers preference towards branded coconut oil. The study has identified that

the consumers give more importance to the quality of coconut oil, which is the main reason

why they prefer branded one. Brand awareness among the consumer were also found fairly

high, but limited to the geographical availability level.

Objectives

To study the customer preference towards Thanima coconut oil

To examine the factors influencing customer preference

Methodology

Sample design

The supermarkets in Thrissur City area can be grouped as:

(i). Small and medium Super Markets having floor area of less than 2000 square feet;

and

(ii) Large Super Markets having floor area of more than 3000 square feet.

There are total 60 super markets in Thrissur District (Source

http://www.thrissurkerala.com/). Out of this, 10 supermarkets are coming in the group of

large/major supermarkets. This study was carried out in all these 10 major supermarkets in

the Thrissur City area.

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Data collection

Both primary and secondary data were collected for the study.

Primary data

Primary data for the study was collected through interview with the help of prestructued

schedule. Data on family details, income, education status, coconut oil consumption,

purchase pattern of oil, etc. were collected.

Observations made

Socioeconomic profile of respondents

Expenditure pattern

Brand awareness

Impact of Thanimas promotional efforts on consumers demand.

Quality, Price of coconut oil

Brand loyalty and switching

Product attributes.

Currently used brand

Reference groups like, friends, peers, relatives, etc.

Segmentation of consumers into each income group

Purpose wise use of the coconut oil

Study period

The study is based on primary data collected from sample respondents using a prestructured

schedule. The study was carried out during the period of October to December 2010.

Study area and sampling procedure

For the purpose of study, all major supermarkets (10 numbers) were identified from Thrissur

City area. The service time of the supermarkets was divided into four time zones as follows:

1. 9.00am to 12 noon

2. 12 noon to 3.00pm

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3. 3.00pm to 6.00pm

4. 6.00pm to 9.00pm

Five customers from each time zone, that is, total 20 customers, were identified from each

super market and collected data. The sample size comprised of 20 respondents each from the

10 supermarkets constituting a total of 200 respondents.

Secondary data

The secondary data was collected from the published sources such as reports, journals,

periodicals, Internet and other Medias.

Analysis of data

The collected data were tabulated and analysed with the help of statistical tools such as

averages, scores, percentages, etc. To analyse the costumer preference towards Thanima

coconut oil and the factors influencing customers preference, questions were graded on a

five point scale. Response choices were given weightage in the following manner.

Response score

The formula used for calculating the index (Kerlinger, 1970) is given below:

Total score of the statement

Index = x 100

Max. Score of the statement

Each respondent was asked to indicate the description that most suited feeling towards the

statements. The individuals total attitude score is represented by the algebraic summation of

scores assigned to each statement. The objective was to make a comparative evaluation of

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Response Choice Scoring Weight

Strongly Agree 5

Agree 4

No opinion 3

Disagree 2

Strongly Disagree 1


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responses of different statements and to find out for which all attributes the respondents have

favorable opinion and for which all attributes the respondents had unfavorable opinion.

Scope of the study

The findings of the study will help M/s Sterling Coconut Oils, Cakes and Mills (P) Ltd. as

well as its dealers to develop and expand their operational problems and to take appropriate

steps to improve their marketing activities by considering customer tastes and preferences.

This study will also help the organization to improve their profit position. It is relevant to

examine the consumption pattern of coconut oil in a distinctive market to evaluate the present

market activities of Thanima and the essential measures to be taken to penetrate these

markets. Hence the subject of study brings out a key to forward planning for the next

operating period.

The marketers can use the result of the study for improving the brand awareness as

well as brand image among customers. Based on that, they can adopt better marketing

strategies for making themselves competitive. The study of customer preference is important

for its marketing developments. The findings of the study can be used to improve the oil sales

of the company by adopting appropriate marketing measures either by penetrating the

existing market of its branded sales or by exploiting new markets. In addition, helps to

identify the market potential of coconut oil over the other brands.

The customer preference towards branded oils, buying motives, their loyalty towards

a particular brand and switching from one brand to another would be taken into account. The

analysis based on the needs and wants will help to add value to existing products and also to

measure customer satisfaction. Thus marketers can utilize the results of the study by

positioning the attributes according to the consumers as well as customers preference.

Limitations of the study

The following limitations have happened in the study:

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1. The time constraint stands as a barrier to cover a much larger sample, hence the

result of the study cannot be generalized

Unavailability of accurate information from the customers

The study included only major supermarkets in Thrissur city and so customers of

minor and medium supermarkets could not be included in the study.

The findings of the study are only indicative and hence cannot be generalized for

the district or state as a whole.

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CHAPTER 2

Review of Literature

1. Amit P. Pratab argued that coconut oil is primarily used for edible purpose and also for

hair oil. It is an important source of intermediates like fatty acids. Glycerol and fatty

acids, which are used for the manufacture of wide range of chemicals such as surfactants,

emulsifiers, foam booster etc. These intermediates are used in the formulation of several

finished products like soaps, detergents, and shampoos. Glycerol is used in lot of

cosmetics formulations. Palm kernel oil is also has a similar fatty acid profile. It could be

used for the manufacture of all the coco based chemicals. However, the coco based

products are preferred due to their characteristic odour and mind set of people (Pratab,

2009).

2. Bhattacharya in their study on Putting the customer trust observed that given the rising

demand of customer as well as increasing competition, the need of the hour is to gear

itself positively to the needs of its customers. This would mean vendering the service in

an efficient and effective manner. (Bhattacharya, 1991).

3. According to Balachandran, S in his study on Customer driven services and

management, for the same level of service rendered, some customers may be very

satisfied depending upon perception of experience and expectations. Expectations are

based on what one has heared from others, seen in advertisements, its external appearance

or what one has been made to believe by the sales man. (Balachandran, 1999)

4. Bal Subramanian and Sathyanarayanan explained in their study that the success of any

business lies in maintaining a strong base of loyal costumer. The organization exists for

the customers and the customers are the deciding forces behind the success or failure of a

business organization. (Bal Subramanian and Sathyanarayanan, 2008)

5. Carlo Lovatelli, in his study on Good potential for using vegetable oils as bio fuels

stated that the potential for using vegetable oils such as Palm oil, and soya oil as biofuels

is increasing considerably as the petroleum crude price will continue to rule high.

Petroleum price increase tendency is a strong indication that biodiesel should become

more competitive over the next few years said Lovatelli in his presentation on Vision

2020 - Soya. Various countries such as Malaysia, USA and Brazil are investing heavily

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in research to gradually make this bio fuel as an alternative to crude oils. (Lovatelli,

2005).

6. Davish Janin argued that, in a short span of 30 years, India has emerged as the worlds

fourth largest oil seeds economy next only to USA, Brazil and China. The note is that the

Indian oil seeds ad edible oil sector performed well last year. The seed processors of soya

been, sunflower, cotton seed etc have had reasonably good margins .The oil processor

also had good processing margins as price went up (Janin, 2000).

7. Devendra Arora and Loveleon Gavr stated that customer relationship management is a

business strategy to acquire and retain the most valuable customer relationship. It is

estimated that the cost of acquiring a new customer is four times the cost of retaining the

existing one. The core concept behind marketing is the role of exchange. Exchange can

take place between buyer and seller and also not limited to money. (Devendra Arora and

Loveleon Gavr 2006)

8. Dipak Kr Ghosh and Arpitha Ghosh suggested that coconut oil is more beneficial to

human body as a dietary fat than the natural or hydrogenated form of unsaturated

vegetable oil. The incidence of coronary heart disease could be better linked with the

consumption of cholesterol rich food of animal origin and the sedentary habits associated

with a tension ridden mechanical society. (Dipak Kr Ghosh,and Arpitha Ghosh, 2008)

9. Elumalai pointed out that Brand strategy is an intimate aspect of product planning. A

marketer has to decide which products to be branded, how to brand them and how to

manage the Brands. In developing a brand the manufacturer has to establish the Brands

quality levels and other attributes that will support the brands together position in the

market place. (Elumalai, 2003)

10. Windisch opined that the last two decades have seen a substantial increase in the use of

aromatic herbs and essential oils as feed additives in animal nutrition. One of the main

reasons for this trend is to substitute antibiotic growth promoters, which have been

completely banned as feed additives in the European Union since 2006 because they are

suspected of contributing substantially to increasing resistance among human pathogens.

Recent investigations have shown significant antimicrobial effects of several essential oils

and essential oil compounds against enter pathogenic organisms in farm animals. Porcine

proliferative enteropathy caused by specific Escherichia coli strains could be controlled

by in-feed application of carvacrol-rich essential oils, and the effect of some essential oil

components against Clostridium perfringens and necrotic enteritis was confirmed in

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poultry. In ruminants, an improvement of the digestion was observed, resulting in reduced

methanogenesis and nitrogen excretion. In addition, the anti oxidative activity of aromatic

plants and essential oil compounds contributes to the stability and palatability of animal

feed and has, moreover, resulted in an improved shelf-life and quality of animal products,

due to reduced oxidation. The 'growth-promoting effect' of essential oils (feed conversion

rate, daily weight gain, etc.) is not as evident, since a large number of publications are

(commercial) product-driven, lacking data on the starting material. (Windisch, 2010).

11.According to Singh and Singhal a well designed packing, act as a main identifying

feature for quality and quantity and makes the consumers more informative and

choosy. It further informs the consumers as to what quality, quantity and price, the

package is worth off. (Singh and Singhal,1980)

12.Sing Prabhakar stated that one of the basis of consumer perception, a customer would

take the purchase decision and a particular brand was getting priority over other

brands. They also observed that the marketers realized the importance of consumer

perception and attempted to create a unique image for their products, which enable to

achieve an advantage over their competitors products. (Sing Prabhakar ,1989)

13.Thampan has observed that the demand for coconut oil in both the edible and non edible

and user has suffered erosion as a result of technical and economic substitutuions, which

have been taken place over a period of time. He has also suggested measure to b be taken

to regulate and maintain stability in the supplies of coconut oil and to control its prices

within a range, which will be beneficial to both the producers and consumers. This

objective could be achieved by operating a supply management scheme for coconut oil in

Kerala state which would, in the long run, strengthen the existing market demands and

develop new markets for coconut oil to take care of the possible future increase in

production.(Thampan ,1995)

14.Manoj Kumar Ambashta stated that customer orientation comprises two mutely related

factors such as customer satisfaction and the efforts to fulfill those needs up to the levels

of their satisfaction. To put it in the modern technologies,custumor satisfaction in the

present era may be complicated mix of hardware (Technology

,Product,Price,Quandity)and software (Attitude

,responsiveness,deleverness,andcommemorations).(ManojkumarAmbastha,1997)

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15.Sanjiv Phansalkar argued that the misconception is that high edible oil prices was the only

technique of demand management. Eliminating imports and creating demand for

conventional minor oils, allowing blending and mass and large-scale availability of pure

oil, conveniently packed were all part of the policy. The earlier reliance on canalization

and the directed use of imported oils had let to massive vested interests particularly in the

vanaspathi industry and the public distribution system. (Sanjiv Phansalkar,1998)

16.Subramanian identified that for the development of coconut industry strengthening of

marketing promotion and market intelligence is necessary. He opined that market

promotion programme intends to create market and capture market information. Market

intelligence services gather information of the market arrivals, wholesale prices for

analysing the market trends for various coconut products inside and out side the country.

(Subramanian ,1998)

17.Maheswarappa.Hp opined in his study that a field experiment was conducted to study

the response of agronomic practices on galangal grown as intercrop in coconut garden

during 1995-1998.Growth,yield characters and yield were superior when mother

rhizome was used as planting material, where as quality characters like oil andoleoresin contents did not differ. Significantly among mother rhizome treatment. Plant

population level of 500000 per hectare (20*10cm) recorded significantly superior

rhizome yield as compared to 333000 population levels. The percent reduction in the

yield due to lower density population was 6-7 percent. Growth, yield characters and

yield were superior with farm yard manure TNPK combination followed by farm yard

manures vermicomposts applied alone. Oil and oleoresin contents were significantly

higher with farmyard manure TNPK, framyardmanure and vermicompost applied

alone compared to composted coir pith application and control. (Maheswarappa,2000)

18.Markose and Thomas categorically stated that in spite of the interference of the

Government machineries for the procurement of copra under the price support scheme.

The market price off copra and coconut oil ruled below the minimum support price

(MSP).Therefore announcement of MSP and procurement of coconut industry in the

country. (Markose and Thomas ,2000)

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19.D.PS Varma and Heama Israneny conducted a study to find the consumer attitude

towards advertisement messages. Most of the consumers (52%) used the information

from advertisements to make their purchase decisions. As much as 70 % of the

consumers believed that some advertisements actually mislead them by presenting

false and exaggerated feature of the product. The vast majority of 80 percent of

consumers agreed that the cost of advertisements increased the total cost of products.

Only a slim majority of consumers (58%) have a favorable attitude towards

advertisemenrts.38 % of consumers reported unfavorable attitude towards

advertisements. (D.PS Varma, and Heama Israneny, 2000)

20.Wilson stated that information behavior is a broad term encompassing the ways

individuals articulate their information,needs,seeek,evaluate,select and use

information.Inotherwords information seeking behavior is purposive in nature is a

consequence of a need in to satisfy some goal. In the course of seeking the individuals

may interact with people, manual information system with computer oriented

information system. (Wilson,2000)

1.1 ABOUT THE INDUSTRY

The coconut palm is one of the most valuable plants to man. In Sanskrit the coconut

palm is called kalpa vriksha, which roughly translated means Tree of Life. In India , it

provides livelihood to about 10 million people through various activities from its

cultivation to processing of its products. All the parts of the coconut tree can be put to

useful purposes- the roots, the trunk, the wood, leaves, the blossom and all parts of the nut.

Two major classes of coconut palm are typically recognized on the basis of

stature: tall and dwarf. The ones most commonly planted for commercial purposes are the

tall varieties, which are slow to mature and first flower six to ten years after planting. They

produce medium-to-large size nuts and have a life span of sixty to seventy years. The

dwarf varieties may have originated as a mutation of tall types. The dwarf variety may

grow to a height of twenty-five to thirty feet and begin flower after three years, when they

are only about three feet tall. Their life span is only about thirty years.

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COCONUT INDUSTRY IN INDIA

Coconut palms are grown widely in the coastal tracts of the country. The coconut

economy of India is in a convenient status. India accounts for 22.34 per cent of the worlds

coconut production and is one of the major players in the worlds coconut trade. Currently

the crop is grown in 1.91 million hectares with an annual production of nearly 13000

million nuts. Copra processing, coconut oil extraction and coir manufacturing are the

traditional coconut based industries in the country.

The price of the coconut in the country is dependent on the prevailing price of coconut

oil which is characterized by recurring violent fluctuations. The behavior of coconut oil

price is relatively dependent on overall supply of oils and fats in the country. The

fluctuation in the price of the coconut oil simultaneously reflects on the price of coconut.

The volatile price situation often ends in the negligence of the coconut gardens, leading to

attack of pests and diseases and low productivity. Of the range of ways, promoting cost

effective coconut based farming system, product diversification and value addition play a

crucial role in the stabilization of the coconut oil driven domestic market and is essential

for reorienting and engineering the Indian Coconut Industry cost effective and globally

competitive.

The Coconut Development Board has been playing pivotal role in promoting viable

coconut based farming system, on-farm processing and products development. The

production and marketing of value added products have started attracting commercial

interest and the situation brought rejuvenation in the sector. The market promotional

measures undertaken in pursuit of the popularization of health benefits of coconut oil and

tender coconut water have attributed a stimulating effect on the less dependency of

coconut oil driven coconut economy.

1.2 ABOUT THE COMPANY

Keramitra Pvt.Ltd, virginCoconut oil Manufacturing Company is a consortium of four

independent Virgin Coconut Oil manufacturing units assisted by Coconut Development

Board Cochin(Government of Kerala).. The manufacturing units are located at the central

districts of Kerala. Keramitra was formed and incorporated with the objective of marketing

the value added coconut product Virgin Coconut Oil under a common Brand name.

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The consortium members commenced commercial production in the year 2006.Keramitra

Private Limited Company inaugurated on 17th August 2008 with the support extended by

Coconut Development Board Chairman Smt: Mini Mathew IAS. Under whose guidance

and direction Keramitra was officially inaugurated by the Honorable Revenue Minister of

Kerala Sri: K P Rajendran and the first sale of Virgin Plus was done by the C.D.B chair

person.

Keramitra is specialists in producing Virgin coconut oil. Virgin coconut oil also called

white coconut oil is extracted from freshly shredded and first pressed coconut meat of

choice and mature coconuts. Keramitra offers both virgin and roasted coconut oil in a

wide range of packing (Our packing of small quantities is in pet bottles of 1000ml, 500ml,

200ml, 75ml and 35ml and large quantity packing is in 2 litre and 5 litre Plastic cans.

We are recognized worldwide, as masters in manufacturing high quality coconut based

products like Virgin Coconut Oil, Roasted Coconut Oil. A wide area of farmland is used

for cultivation of coconuts, using modern growing methods & techniques. Our impressive

range of coconut based products and customer friendly services has made us a popular

brand in both domestic & international market. Our endeavor is to maintain a long-lasting

relationship with our customers.

U S P OF KERAMITRA

Technology, Manufacturing process and Marketing:

Keramitra availed the Indian technology of C.F.T.R.I i.e. Centrifugal and DME

Technology of Dr. Dan of Australia.

Indian Technology

Under the Indian Technology Coconut has been de-husked, parted, water is removed and

put into disintegrator for crushing. The kernel is then put into the squeezing machine. The

milk thus obtained is kept in a cool room for twelve hours by adding an enzyme. Coconut

milk will be taken into a centrifugal machine by rotating under high RPM. Oil, water and

protein are separated. The Oil is then bottled, Labeled and made ready for marketing.

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DME System

Under DME technology the kernel passes through a thermal drier for twenty minutes and

filled into cylindrical equipment which has hundreds of micro holes. The cylinder is filled

and then with a hand press the Oil is separated. The oil will be filtered, bottled and labeledand made it ready for marketing. The entire process will take only thirty minutes.

Marketing Strategy

Keramitra has a network of marketing team consisting of a General Manager, Sales

Manager, and a Sales Executive almost all district of Kerala. Outside Kerala also we do

have a network.

Export

Keramitra have exported Virgin Plus to U.K, U.S.A Malaysia, United Arab Emirates,

Kingdom of Qatar, Kingdom of Bahrain, Newzealand, Singapore etc

Keramitra supports the farmers

The small and medium coconut farmers are helped by Keramitra. We purchase coconut

from the yard always at a higher price of 10 to 15 % and also at ready cash .So that farmers

need not wait for weeks to get their money from the middle man and copra merchants.

Keramitra generates employment opportunities in the rural areas particularly uneducated

woman We also focus on the economic development and self sufficiency of the poor people

in and around local area.

PRODUCT PROFILE

VIRGIN COCONUT OIL

"VIRGIN PLUS" Brand of white coconut oil is produced by KERAMITRA from

coconut of the finest quality, directly procured from coconut growers in Kerala the land

of coconuts. The coconut thus procured is processed using the most modern technology.

In the selection and processing of coconut, KERAMITRA employs strict quality control

measures to ensure product superiority and purity. A unique two stage filtering process is

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employed by KERAMITRA to retain the original aroma and flavour of coconut oil for a

long period.

"VIRGIN PLUS" Brand of coconut oil is known for its quality, purity, longer shelf life and

reasonable price. Its quality is conformity with the grade specifications.

ROASTED COCONUT OIL

1stquality Copra is cut into small pieces. They are dried to desired moisture level using

hot

air. This copra is roasted on a steam jacketed vessel. A bit of steam is sprayed for cooking.

This conditioned copra is crushed on expellers for oil extraction. Crude Oil extracted is

filtered In 4 stages to get Pure Coconut Oil.

Due to heating of copra during drying and roasting and friction during oil extraction,

the oil attains higher temperature i.e. 100C. Coconut Oil consists of mostly (92%))

saturated fatty acids that are stable even at high temperature. So they dont change forms

during processing. Cold Press is the traditional method of oil extraction. Roasting is an

improved form of copra processing. The following are the benefits of Roasted Coconut Oil

1. Better taste and aroma

2. Longer shelf life due to moisture control

3. Copra is sterilized by heating and hence no chance of contamination due to bacteria,

Fungus and viruses.

PRODUCT CATALOGUE

KERAMITRAS packing of small quantities :

1. 1000ml

2. 500ml

3. 200ml

4. 75ml

5. 35ml

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Large quantity packing :

1. 2 litre can

2. 5 litre Plastic cans

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