Marketing Plan of Animal Feed

(Summerkool) for Godrej Agrovet

Marketing Plan of Animal Feed

(Summerkool) for Godrej Agrovet

Submittted ByPankaj K Bhaisare

IntroductionIntroduction

Godrej Agrovet Limited (GAVL) is a diversified agribusiness company

FY2011-12 sales of Rs. 2439 crore GAVL's Animal Feed business was started in the year 1972. The Animal Feed business is India’s largest, producing over

9,57,000 tons annually of high-quality feed and cutting-edge nutrition products for dairy cattle, poultry & aquaculture.

Today, the business has 40 production units across the country and more than 22% market share in the compound feed market.

But now it want to enter in customize feed supplement business for cattle feed and developed Summerkool feed in power form packed in 1 kg pack.

Current business situationCurrent business situation

Financial results

Its total income from animal feed during year 2011-12 is Rs 1748 crore as compared to Rs 1293 crores in 2010-11

Animal Feed Sales increased by 35.2% since FY2010-11

Cont’d….Cont’d….

Sales figures and trend• Animal Feed Sales increased by 35.2% since FY2010-11

•Feed sales volumes increased by 17.8% since FY2010-11

•Return on Capital Employed (ROCE) for FY2011-12 was 337%

•Volume growth realized across all categories and region

•New feed mill capacities coming online across India

Ref: Godrej Industries Limited / Investor and Analyst Meet presentation | June-07-2012

SWOT Analysis:SWOT Analysis:

Strength: Brand Name Strong investment capacity and

financial position Skilled employees 20% market share in Feed

industry. 40 well equipped production

units More product range in product

line. Cost Advantages

Weakness: Lack of R&D investment Focus on Product

Opportunities:

Acquisitions

Emerging markets and expansion abroad

Product and services expansion

Threats: Lower cost of

competitors product Maturing products Product substitution Fluctuation in Milk

Prices

Competitors analysis: Porters five forcesCompetitors analysis: Porters five forces

Rivalry: Existing Competitors:

Cargil International, Hindustan Animal Feeds, Pfizer Animal Health India Limited and many local players.

More competition from rivalry.

Threat of New entrant High Customer can switch

Government regulation is less

Low production cost

Threat of substitute High

More alternative products available

customer can purchase low cost products

Bargaining power of Supplier

Low Many supplier for

raw material Contract farming

Bargaining power of buyers:

High Many alternative

product available Switching cost for

buyer is less

Marketing StrategyMarketing Strategy

Mission statement

“We are fully dedicated to producing , selling and serving livestock farmers by providing the most advanced best nutritional supplement products throughout life.”

A vision statement

“ Being leader in animal feed market in India by providing best quality feed supplements which helps to gain trust among consumers.”

Objectives Our goal is we want to achieve sales target of Rs 4000

crore in year 2015.

Strategy for Growth: Summerkool in Ansoff MatrixStrategy for Growth: Summerkool in Ansoff Matrix

Existing Product New Product

Existing Market Market Penetration Product development

New Market Market development Diversification

Product development strategy : Summerkool is new fully innovative cattle feed Supplement

product in existing market which helps to reduce heat stress and minimizes decline in milk during summer.

It contain proteins 30 gm, Metabolizable energy 1200 kcal, Sodium 130 gm, Potassium 25 gm, Fat soluble vitamins 2500 mg and water soluble vitamins 50000 mg in 1 kg.

Product is different from other product and have unique composition so there is more demand for product.

The Marketing MixThe Marketing Mix

Product: Summerkool with unique characteristics sale in Summer to

increase milk yield in cows and buffaloes. Premium product, disposable with high demand in

Summer i.e. fast moving during season. It is packed in 1 kg plastic bottle with attractive cover

design. The ingredient and it composition as well as how to use

and relative precaution also mention on cover. We developed this product because in milk yield of animal

reduces by 10 -25 % and conception rate due to heat stress.

Cont’d…Cont’d… Price

Skimming pricing strategy will be used. No product similar to Summerkool available in the market

and it is seasonal product. Premium product and new in market

Place The product will be sale through dealers network to the

agri-input retail shops and through sales executive to target the dairy co-operatives.

High product margin to dealer and retailers. Guide retailer about the display of product in the shop. Sale product in All the major milk producing states in

India.

Cont’d….Cont’d….

Promotion: Get high milk yield and good animal health in summer ….

Use Summerkool …… improve productivity…better return

Advertise channels: TV, News Papers, Dairy Magazines, mouth publicity and leaflets by distributor , dealers and retailers.

Demonstration campaign at reputed co-operative dairy farm.

Segmentation, Targeting and PositioningSegmentation, Targeting and Positioning

Segmentation: On the basis of geography: North, East, West and South Organized and Unorganized Dairy farmers: Small ( 3 animals), medium (4-10 animals) and large

(more than 10 animal).

Targeting: In all geography location through established local distribution network of a company target organized medium and large dairy farmers and dairy co-operatives.

a network of over 10,000 distributors, dealers and C&F agents

Cont’d…Cont’d…

Positioning: Positioning as premium product which helps to reduce

heat stress and minimizes decline in milk during summer because heat stress can be costly to the dairy farmer.

The unique product in market used in summer to reduce unexpected milk decline and to keep animal healthy.

Use Summerkool….. Keep animal healthy…. Increase milk yield……get benefited by trusting on us.

Thank You….Thank You….