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A

Project Report

On

“Study on Retailing Techniques at Cargill India

Pvt. Ltd.’’

Submitted by

Student’s name: Sumit Agarwal

Roll no. : 30

Session : 2015-17

Submitted in partial fulfillment of the requirements for qualifying

Post Graduate Diploma in Management

Under the guidance of:

Name of External Guide: Name of Internal Guide:

Mr. Anuj Jain Prof. Sushil Pasricha

ASM Associate Professor

Cargill India PVT. LTD. JRE SOM

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ACKNOWLEDGEMENT

It would be prudent to commence this report with an expression of gratitude towards all those who have

played an indispensable role in the accomplishment of this project by providing their valuable guidance. I

would like to take this opportunity to acknowledge and thank Cargill India Pvt. Ltd. for providing me with this

highly coveted opportunity to associate my Summer Internship Project with an organization of worldwide

repute.

I extend my gratefulness to Mr. Pradeep Sharma, Zonal Sales Manager and Mr. Anuj Jain, Area Sales Manager

for their help and guidance in various capacities which have been extremely proficient in getting the best out

of me by sharpening my rough edges from time to time.

I am deeply indebted to my faculty guide, Prof. Sushil Pasricha whose help, stimulating suggestions and

encouragement helped me in all time of research.

I am also thankful to all my team members for their stimulating support and co-operation. Last but not the

least, I cannot forget the help and co-operation of the employees of Cargill India Pvt. Ltd.

My special thanks to my parents without whom it would have not been possible and for everything of what I

am today.

Sumit Agarwal

PGDM (2015-17)

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CONTENTS

1. EXECUTIVE SUMMARY 1-2

2. INTRODUCTION 3

2.1 OBJECTIVES 4

2.2 OVERVIEW 5

2.3 SCOPE OF THE PROJECT 6

3. ABOUT THE COMPANY 7

3.1 COMPANY OVERVIEW 8-9

3.2 CARGILL IN INDIA 8

3.3CARGILL IN ASIA PACIFIC 9

3.4 PRODUCTS AND SERVICES 10-16

3.5 BRANDS 17-19

4. SALIENT FEATURES OF INDIAN OIL SECTOR 20

5. EDIBLE OILS IN INDIA 21-23

6. LIST OF EDIBLE OIL PLAYERS IN INDIA 24-25

7. FUTURE OF EDIBLE OIL IN INDIA 26-27

8. CONSUMPTION PATTERN OF EDIBLE OILS IN INDIA 28-29

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9. DISTRIBUTION CHANNEL OF CARGILL INDIA PVT. LTD. 30

10. ORGANISATIONAL CHART 31

11. SWOT ANALYSIS OF CARGILL INDIA PVT. LTD. 32-33

12. FORMAL TRAINING 34-45

13. SUGGESTIONS OF RETAILERS AND CONSUMERS 46

14. PROBLEMS FACED BY THE RETAILERS 47

15. HIGHLIGHTS OF SIP TRAINING 48-49

16. TERMS AND TERMINOLOGY USED 50-51

17. LIMITATIONS OF PROJECT 52

18. BENEFITS DERIVED 53

19. CONCLUSION 54-55

20. RECOMMENDATIONS 56-58

ANNEXURE 59

BIBLIOGRAPHY 60

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Prof. Sushil Pasricha

(Faculty Guide)

Declaration

I, Sumit Agarwal, hereby declare that the management project on “Study on Retailing Techniques at Cargill

India Pvt. Ltd.” is my original work. The facts and figures used in this project are authentic and reliable as per

my knowledge. I am held responsible for the veracity of such facts and figures.

Sumit Agarwal

PGDM (2015-17)

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Executive summary (Abstract)

This Study gives you an overview of the various aspects related to Distribution & Sales Management; with

emphasis on customers, competitors, dealers and employees. The study throws some light on the overview of

Cargill Foods in India, as well as in the Global Scenario. Founded in 1865, Cargill is one of the largest

international providers of food, agriculture and risk management products. With more than $120 billion turnover

and operations spread across 67 countries, Cargill today employs more than 1, 60,000 people across the world

and is trusted across for its commitment of an Cargill’s people. In India, Cargill has an access over 1000 towns

and 2, 50,000 retail outlets. Since its inception in 1987, Cargill has been a part of Cargill lives with the most

innovative and best quality products. Cargill Refined Oils India imports, refines, sells and markets a wide range

of vegetable oils and fats to wholesale trade, industrial and household consumers across India. We own and

operate Cargill vegetable oil refining facilities – three are located on east and west coast ports of India, the other

is located in western India. Refined Oils India markets a range of refined sunflower, soy, palm, olive and ground

nut oils, hydrogenated fats and bakery shortenings under Cargill national brands, Nature Fresh, Gemini, Purita™,

and other region-specific brands.

I started my summer training on 1st May ’2016. During my summer training I had to report at the

area(field) at sharp 10:00 am and was asked to work till 4:00 pm. I had given 3 territories for my

training project i.e. Bulandsheher, Moradabad and Bareilly. I had started with Bulandsheher region, where I

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used to go to the distributor point and through distributor we did retailing. Firstly I checked the inventory

before retailing then we will go in the market. In retailing I had sold Gemini Vanaspati Ghee and soyabean

oil and also I had to take feedback from the retailer and focus on the complaints(if persist). I had covered 7

distributors and 474 retailers . In Moradabad region I had covered 9 distributors and 201 retailers. In Bareilly

region I had covered 1 distributor and 118 retailers

I need to take care that our product should be displayed properly on the shelf so that the product should

be in the reach of the customer.

There is 1 thing that I have found that the peoples working at Cargill India pvt. Ltd. are very much

helpful in all areas. Every time they come to me and told me that they are available at any time for

me anything, which really boost me and motivates me towards my goal and objectives. The culture of

Cargill India Pvt. Ltd. Is very much friendly. I completed my project on 30th June’ 2016 and during the

project I have achieved my all objectives of my project. The project deals with the market development

and selling of Gemini Vanaspati Ghee.

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INTRODUCTION

Dairy products have been part of the human diet since time immemorial. They play an important role in a

healthy diet, both for nutritional value and personal enjoyment. Milk and milk products naturally provide 15

essential nutrients for normal growth and for the maintenance of good health. In addition to its unique nutritional

value, milk is fortified with vitamin D. Consumed alone or in recipes, dairy products provide unparalleled taste,

texture, versatility and variety.

Vanaspati is also an Indian/South Asian slang for Vanaspati ghee, a fully or partially hydrogenated vegetable

cooking oil, often used as a cheaper substitute for ghee. In India, vanaspati ghee is usually made from palm oil.

Hydrogenation is performed using a catalyst known as "supported nickel catalyst", in reactors at low-medium

pressure (3-10 bar). Vanaspati ghee is very high in trans fats, which may compose up to 50% of Vanaspati.

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OBJECTIVES

To determine the problems faced by the retailers in the market.

To ensure timely delivery of Gemini Vanaspati to the retailers.

To ensure the visibility of Gemini Vanaspati on the shelves of the retailers

To increase the sale of Gemini Vanaspati and its market development in the regions of Bulandshaher,

Moradabad, Bareilly.

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OVERVIEW

Ghee industry was one of the very old industries in India. The evolution of this industry is Unknown . Generally

when we look upon the past, the production was very limited to the villages, the possible reason could be high

population of milch and livestock animals confined in the villages with a predicted urban to rural ratio of 3:10(acc

to www.ncap.res.in). Even in olden days peoples in rural areas and even in semi urban areas uses Ghee for cooking

foods because of a single reason of easy availability of milk and so the ghee. In present situation the uses of Ghee

is not only situated in rural areas but its uses is now very wide spread. Ghee is getting popularity even in urban

areas of our country. There are many of the reason behind this trend; some are as follows 1) Good taste of Ghee

made foods 2) Most of the time work as preservative 3) High Fat content, so gives high energy compared to any

other food item. But though the use of Ghee is increased manifold compared to some decade ago, year on year it

was recorded that the sales of ghee were declined considerably. The basic reason suggested is high price of Ghee

and high cholesterol content. So the price conscious consumers are start preferring Vanaspati Ghee as it is

available in very less price with same energy content like Ghee. Vanaspati Ghee industry was started in the year

of 1930 with a production of 303 tones.

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SCOPE OF THE PROJECT

The main purpose of the project was to boost the sales of Gemini Vanaspati and its market development. This

project helped me in understanding that despite sales being high in most of the regions, Bareilly needed

exceptional attention. My major focus was development of Gemini Vanaspati brand value in these regions.

In this report, the data was collected within the 3 territories i.e. Bulandsheher, Moradabad and Bareilly region as

the focus is given for vanaspati ghee in retailing point of view, As it will create a high demand of sales in the

market, the techniques used in these regions can be used in other regions also to boost the sales, but it is within

the scope of the Indian retailing market.

This will give an oppurtunities to the reader to get the brief idea about the study and the limitations in the report

and they can try to cope up with those limitations. The Organization can utilize the information to formulate and

present their market strategy according to the customer expectation.

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ABOUT THE COMPANY

Cargill, Inc. is an American privately held global corporation based in Minnetonka, Minnesota, a Minneapolis

suburb. Founded in 1865, it is now the largest privately held corporation in the United States in terms of revenue.

If it were a public company, it would rank, as of 2015, number 12 on the Fortune 500, behind McKesson and

ahead of AT&T.

Cargill provides food, agriculture, financial and industrial products and services to the world. Together with

farmers, customers, governments and communities, They help people thrive by applying their insights and 150

years of experience. They have 149,000 employees in 70 countries who are committed to feeding the world in a

responsible way, reducing environmental impact and improving the communities where we live and work.

Cargill’s operations in India started in 1987. They employ more than 2,000 employees working in offices and

plants across the country and have a network of warehouses and depots.

They offer a range of products and services:

• They process, refine and market imported and indigenous vegetable oils

o Serving food industry customers with vegetable oils, fats, blends and bakery shortenings

o Serving household consumers with a portfolio of fortified and healthy branded edible oils

• They offer high quality food ingredients to serve food manufacturers and food service industry.

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COMPANY OVERVIEW

Cargill in India

Cargill’s operations in India started in 1987. We employ more than 2,000 employees working in offices and plants

across the country and have a network of warehouses and depots.

We offer a range of products and services.

We process, refine and market imported and indigenous vegetable oils.

Serving food industry customers with vegetable oils, fats, blends and bakery shortenings.

Serving household consumers with a portfolio of fortified and healthy branded edible oils.

We offer high quality food ingredients to serve food manufacturers and food service industry.

We originate, process, store, trade and market a wide range of agricultural commodities such as grains, oilseeds,

sugar and cotton.

We offer premix, compound feed and therapeutic care products to nourish animals.

We provide risk management and financial solutions.

We offer freight solutions and serve our industrial customers with energy commodities and metal products.

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CARGILL IN ASIA PACIFIC

Cargill has been in the Asia Pacific region since 1948. Today, we have 51,000 employees in 16 countries and 250

locations who are committed to feeding the world in a responsible way, reducing environmental impact and

improving the communities where we live and work. Our purpose is singular; to be the global leader in nourishing

people.

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PRODUCTS & SERVICES

Grains and oil seeds

Connecting producers and users of grains and oilseeds through origination, processing, marketing and distribution

capabilities and services.

Cargill India is one of the largest originators and marketers of food and coarse grains in India. We handle wheat,

corn, rice, pulses, millets, barley and sorghum as well as oilseeds including soybean, rapeseed, groundnut and

vegetable oils and meals. We source grains and oilseeds from the domestic market as well as import and export

them.

Our customers include leading food businesses, flour millers, feed millers, distillers, brewers and starch

manufacturers. To ensure quality, price security and supply for our customers, we offer logistical flexibility and

bring efficiencies in the supply chain. Leveraging our global market reach, we export corn and soybean meal to

the Asia-Pacific region. We import pulses to augment its supply in the Indian market and cater to the growing

demand of consumers for vegetable protein.

We are present in major grain and oilseeds producing and consuming states in India and operate through regional

merchandising and origination offices and multiple storage locations. We process and crush soybean and rapeseed

across western and central India.

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Sugar

Connecting producers and users of sugar through origination, storing and distribution capabilities and services.

Cargill India originates, stores and supplies raw and plantation white sugar and participates in export and import

depending on the surplus or deficit situation in India. We have suppliers in the sugar-producing states of Uttar

Pradesh, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh and serve a wide range of customers.

Our customers include leading sugar manufacturers and food and beverage producers. We also serve customers

in Sri Lanka, Pakistan, Afghanistan, Nepal and Bangladesh. We use our global expertise to provide them market

insights, logistics management, price protection and quality assurance.

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Cotton

Connecting producers and users of cotton through origination, marketing and distribution capabilities and

services. Cargill Cotton, one of the world’s largest and oldest cotton businesses, is respected for its experience,

expertise, reliability and commitment to customers. Cargill’s cotton business can be traced back to 1851 when

Ralli Brothers was incorporated in Kolkata (formerly Calcutta) and Mumbai (formerly Bombay). Ralli Brothers

was bought over by Cargill in 1981 and in 2002, the name of the cotton business was changed to Cargill Cotton.

India is the world's second largest producer of cotton and cotton textiles. Our operations in India form an important

part of Cargill’s global network of buying, selling and merchandising cotton as well as cotton gins and warehouses

that service growers, ginners and textile mills around the world. We have a network of value chain participants

who help us source and supply the best cotton into and out of the country. We work closely with both suppliers

and users of Indian cotton to strengthen their competitiveness in the global markets making Indian cotton the

preferred choice by mills around the world. We offer a range of customer solutions that include price risk

management and supply chain management.

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Animal Nutrition

Offering an innovative portfolio of products and services to nourish animals.

Cargill is one of the leading suppliers of animal nutrition products worldwide. With our global expertise in

supply chain and risk management, we are able to offer distinctive value to meet our customers’ needs through

high quality feed production and efficient distribution. Our market-leading brands and on-trend products support

the care, growth, and efficiency of various livestock, aqua and leisure animals.

We strive to be the best choice in animal nutrition solutions. Our offering includes feed ingredients, feed

formulations, management solutions, risk management services, compound feed, premixes, feed additives and

customized solutions. We serve the animal nutrition market primarily through two businesses, Cargill Feed and

Nutrition and Cargill Premix and Nutrition.

We have a network of marketing and branch offices, a technology application center and seven manufacturing

facilities in India. We offer compound feed and premix products under several brands including Cargill, Purina,

Provimi and Citura.

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Trade & Structured Finance

Providing risk management and financial solutions.

Cargill’s Trade and Structured Finance expertise in financial markets helps our businesses manage risks around

letters of credit, other cross-border credit and financial risks associated with trade and commodity finance. We

complement the efforts of our businesses by providing treasury, financial and balance sheet solutions for their

customers, suppliers and service providers.

We focus on addressing financial and risk management issues, providing working capital management and

restructuring solutions and offering cross-border trade advisory services and short-term and long-term trade-

commodity related financing.

TSF India supports the following activities:

Financial and risk management

Working capital management and restructuring solution

Cross border trade advisory services

Short-term and long-term trade-commodity related financing.

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Metals

As a leader in the ferrous market, Cargill helps you manage volatility and increase profitability through tailored

physical supply and financial solutions in Iron Ore and Steel.

Our integrated supply chain combined with unmatched financial, risk management, logistics and technical

expertise guarantee your operations and optimize your business so that you can focus on growth.

As a well-established company with a 150-years track record of successful risk management in the global

commodities markets, we offer you our unique insight into the ferrous market trends and movements to give your

business greater stability and an undisputed advantage in the market place.

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Global Trade Solutions

Cargill Global Trade Solutions (CGTS), based in Gurgaon provides superior Trade Execution to five trading

businesses currently, handling multiple commodities. CGTS’ multi-skilled workforce, servicing all geographic

time zones, partner with businesses that need Trade Execution services as a core competency within their supply

chains. The team handles container movement of sugar, soybean, wheat, cotton, power and gas among others.

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BRANDS

You may know us from the range of refined sunflower, soya, palm, olive and ground nut oils, hydrogenated fats

and bakery shortenings we market under our national brands,

Nature Fresh®

Nature Fresh Acti-Lite refined oils ensure that you stay light and active. As proven by laboratory tests, food cooked in

NatureFresh Acti-Lite absorbs less oil. The NatureFresh range of oils is available in multiple pack sizes and has many

variants. It is available as refined soybean and sunflower oil; NatureFresh Purita, kachi ghani pure mustard oil; NatureFresh

Shakti, refined palmolein oil; and NatureFresh olive oil. It is one of the leading brands in east and north India.

Gemini™

A pioneer in sunflower oil, the Gemini brand also spans a wide range of edible oils such as soybean, groundnut, cottonseed,

filtered groundnut, mustard oil and vanaspati. Gemini helps in the preparation of healthy food and retains its freshness

for a longer time. Gemini is one of the leading brands in west, north and south India and is available in multiple pack sizes.

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Rath

With more than 50 years of presence in India, Rath is a heritage vanaspati brand. It is a trusted name associated with

cooking delicious Indian traditional recipes and sweets. Rath is one of the leading brands in north and central India and is

available in multiple pack sizes.

Sweekar

Sweekar refined sunflower oil comes with a unique blend of High Oleic Sunflower Oil (HOSUN), for improved heart health.

HOSUN contains higher Mono Unsaturated Fatty Acids (MUFA) than olive oil. MUFA is good fat and is a healthy alternative

to saturated fats; it improves blood lipid profile and so diets with healthy amounts of MUFA have a host of amazing health

benefits. Sweekar is one of the leading premium sunflower oil brands across the country and is available in multiple pack

sizes.

Nature fresh chakki atta

Nature Fresh offers packaged whole wheat flour as Nature Fresh Chakki Atta. It is available in various pack sizes.

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Sunflower Vanaspati

Sunflower Vanaspati is an iconic brand in the hydrogenated fats category. It is one of the leading brands in western and

parts of southern India and is available in multiple pack sizes.

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Salient features of Indian Oil Sector

1) Demand increasing due to population growth and increase in income.

2) Domestic production of oilseeds/oils is not adequate to meet the demand

3) Lower yield

4) Fluctuating production of oilseeds

5) Low capacity utilization of processing units

6) Obsolete technology/processing inefficiency

7) High import dependence about 40%

8) Speculative nature of trade

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Edible Oils in India

• Increase in area is estimated by 30 Lac hectares

• The scope for a big increase in oilseed area doesn’t seem possible

- The availability of new arable land in the country is not substantial.

- No major advantage over the competing crops, rather losing acreage in most of the areas.

- The cost of production of domestic oilseed is not competitive when compared with the low priced ported

oil which is discouraging the farmer to sow oilseeds.

- MSP’s of oilseeds are far lower than other crops.

• Average yield may increase approximately by 70 Kg/Hectare

• There will be a very gradual increase in Yield

- Scarcity of water has compelled farmers to use the early variety of oilseed crops which has lower yields.

Heavy dependence on rains as most of the oilseed crops are taken on rain fed land.

- As rainfall is erratic, so the yields are not consistent.

- Improvement in irrigation facility is still slow.

- Low usage of Hybrid variety of seed in most of the oilseeds crop except cotton.

•The oilseed production may increase by 50 Lac MT.

-

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- So for an general assessment, with an increase of 10 Lac Hectares there will be just an increase of 2.9

Lac tonnes of oil supply.

- The availability of domestic oil will increase by only 12.5 Lac tonnes.

- Though we see an increase in the production of oil seed but this may not result in a big rise in oil

production, as major contribution seems to come from the low oil content oilseeds in next 5 years.

•Demand Scenario of Next 5 Years

- Due to high growth in income levels, increasing trend in spending & better living standards; India

promises to continue high growth in consumption of edible oils and Indian consumption may reach 210

Lac MT by 2015/16.

•Demand drives in India

- Consistent GDP growth forecast of - more than 8%.

- A big expansion in the Indian middle class, due to a big rise in income levels of the poor class.

- The double digit growth of out of home consumption of edible oil.

- Per capita consumption of Edible oils in India at 12.7 kg is still a lot below threshold level of

consumption. Low consuming states of central and East India at 7-9 kg will catch up with their peers of

West & North India at 15/17 kg.

- Even with a moderate population growth the absolute increase in number of people is quiet High.

Schemes like NREGA and rising labor income is increasing the income level of people who are

consuming much below the all India level.

- Rising Urban population & many more.

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• The imports of India may phenomenally rise to 12.5 Million Tonnes.

- So after considering the future trend the current core demand & future supply we have estimated the

share of different oils in 2015/16

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List of Edible Oil players in India

Fortune - Adani Willmar Limited

Nature Fresh, Gemini, Sweekar- Cargill India Pvt Ltd

Dalda - USA Bunge India Pvt.Ltd

Saffola- Parachute- USA Marico Ltd

Sundrop- India Agro Tech Foods Ltd (ConAgra Foods)

RR Primo- RR Oomerbhoy Pvt.Ltd.

Dhara- Dhara Company Ltd

Panghat- NDDB Campus

Tilsona- Anand Mawana Sugars Ltd.

Figaro- Recon Oil Industries Private Ltd

Shalimar's Classic Basmati- Consumer Marketing (India) Pvt. Ltd.

Palm Gold Active- Shalimar Agro Tech Pvt Sarda Agro Oil Ltd.

Ruchi Gold- Ruchi Infrastructure Ltd

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- In edible oil The Adani-Wilmer owned Fortune brand was India’s number one edible oil in 2006 according to

A C Neilson Retail Audit 2006. Fortune, which is present as a refined soyabean oil, sunflower oil, groundnut oil

and mustard oil is said to have a market share of 19% in the entire edible oil market. Marico Industries have a

market share of 13 % with brands like Saffola and Sweekar together.

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Future of Edible Oils in India

Demand Drivers Macroeconomic factors: - Population growth, per capita income, purchasing power, oilseeds

crop

- Other factors : Prices - domestic/ international, Availability - oil, oilseeds

- Influence of branded products - `health’ message

- Growing preference for convenience foods.

Key Success Factors: - Raw material sourcing: focus on improving yields, getting better quality oilseeds,

ensuring regular supplies through symbiotic relationship with farmer.

- Branding essential for success (Vanaspati, Dalda, Oils - Sundrop)

- Better distribution network to improve reach

- Efficiency in operation - to become price competent and withstand overseas competition.

- Proposed Future trading in edible oils will help curtail price volatility and lend knowledge- based

assistance to farmers of eliminate unofficial markets.

Future: - In the next five years, the market for - edible oils will grow by 8% to 12.65 million MT

- Vanaspati will grow to 1.5 million MT

Business Concern: - Free imports, low import duties and slump in global prices - lead to `dumping’

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- Domestic industries of edible oils and vanaspati affected - low realization and idle capacities in oil and

vanaspati industries

- Production slippages have also forced imports

- Excessive (cheap) imports of oilseeds - led to unremunerative prices, locally

- Hence, farmers have shifted to other cash crops

- Increasing health awareness - impact of oils and vanaspati usage on individual’s cholesterol levels

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Consumption Pattern of Edible Oils in India

India is a vast country and inhabitants of several of its regions have developed specific preference for certain

oils largely depending upon the oils available in there region. For example, people in the South and West prefer

groundnut oil while those in the East and North use mustard/rapeseed oil. Likewise several pockets in the South

have a preference for coconut and sesame oil. Inhabitants of northern plain are basically hard fat consumers

and therefore, prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture. Vanaspati has

an important role in our edible oil economy. Its production is about 1.2 million tonnes annually. It has around

10% share of the edible oil market. It has the ability to absorb a heterogeneous variety of oils, which do

not generally find direct marketing opportunities because of consumers’ preference for traditional

oils such as groundnut oil, mustard oil, sesame oil etc. For example, newer oils like soyabean, sunflower, rice

bran and cottonseed and oils from oilseeds of tree and forest origin had found their way to the edible pool

largely through vanaspati route. Of late,things have changed. Through technological means such as refining,

bleaching andde-odouraisation, all oils have been rendered practically colourless, odourless and tasteless and,

therefore, have become easily interchangeable in the kitchen. Newer oils which were not known before

have entered the kitchen, like those of cottonseed, sunflower, palm oil or its liquid fraction (palmolein),

soyabean and rice bran. These tend to have a strong and distinctive taste preferred by most traditional

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Customers. The share of raw oil, refined oil and vanaspati in the total edible oil market is estimated at 35%,

55% and 10% respectively.

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Distribution Channel of Cargill India Pvt. Ltd.

D

Manufacturer

C & F (Depot)

Super Stockiest Distributors

Wholesalers

Retailers

Consumers

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ORGANISATIONAL CHART

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SWOT ANALYSIS OF CARGILL INDIA PVT. LTD.

Cargill, Incorporated

Parent Company Cargill, Incorporated

Category Food Products

Sector Food and Beverages

Tagline/ Slogan Nourishing Ideas. Nourishing people.

USP

A global manufacturer, trader and distributor of food ingredients, agricultural

products & services, livestock feed, etc.

STP

Segment Manufacturers who need superior quality ingredients, services or expertise

Target Group

Foods & beverages manufacturers, animal feed producers, agricultural

commodities producer, etc.

Positioning A world class, superior quality food processing and services company

Product Portfolio

Brands

1. Sweekar

2.Nature Fresh oil

3.Rath Vanaspati Ghee

4.Gemini Cooking Oil

SWOT Analysis

Strengths

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1. High brand equity

2. Has centuries of experience in the industry

3. Global presence in around 66 countries

4. An employee strength of around 142,000 people

5.Presence in 5 major segments- Agriculture Services, Food Ingredients,

Origination and Processing, Risk Management and Financial and Industrial

6.Financial independence and muscle power

7. Numerous brands on offer like Sweekar, Zeroes, Gemini, Rath, Nature

Fresh, etc.

8. Customer base of world class companies around the world

9.Technolgical advancement and expertise in different fields

10.Numerous CSR activities to give back to the stakeholders

11.America’s largest private sector company

12.Stong R&D and operations

Weaknesses

1. Negatively publicized on many occasions over allegations of

environmental issues, contamination, human rights violation, etc.

2. Presence of many options means high brand switching

Opportunities

1.Increase global penetration and tap rural opportunities

2.Acquire other companies

3.Try to expand in the untapped markets

4.Market itself aggressively

Threats

1.Fluctuations in the cost of raw materials

2.Global economic instability

3.Competition in all segments of operation

Competition

Competitors

1. Archer Daniels Midland Company (ADM)

2.Ag Processing Inc.

3.Kerry Group

4.Tate & Lyle

5.Ingredion Incorporated

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Formal Training

Techniques Studied-

Effective sales skills doesn't happen by accident. The small entrepreneur must work to achieve a high level of

sales effectiveness in his or her business. In order to work toward this goal, the business person should be aware

of the different types of salespersons, the sales process, and the attributes of effective salespersons. Applying such

knowledge to a business situation should result in the desired goal of effective sales personnel - the competitive

edge.

It is important to note that retailing may involve sales services instead of products. Appliance repair, beauty shop,

lawn service, and photography studio are all examples of service retailing. Even though services are intangible,

personal, non-standardized, and perishable when compared to products, they are sold by retailers either alone or

in conjunction with the products. The effective sales of services has the potential to give a business a competitive

advantage.

Types of Salespersons

Order-Handler

The ticket-taker at the concert, the checker at the food store - these salespeople are working in a routine sales

environment. But due to the nature of their jobs, they will be asked numerous questions by customers as well as

hear complaints about prices and service. A knowledgeable person with a pleasant personality is especially needed

for this job, because this is usually the person who is dealing with the customer when the customer's money

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(payment) is received. For Ex; - Basically Distributors are the ones who handles the retailing order in the market

and then Sales Officer who takes order from the distributors. Many a times when I was go with the distributors

sales person we face difficulties in while we handle the retailer for taking order as they tells us that he was not

satisfied with our service and sometimes salesperson of distributors makes fake promises with the retailer. They

makes so much of complaints as he was unsatisfied with the service of the distributor.

Order-Taker

More creativity is found in this job as compared to the order-handler. The counter attendant at the fast food

restaurant may take the order and then suggest that the customer might also wish to buy a hot apple turnover.

Pleasant personality, fast service, and suggestion selling on the part of the order-taker can result in many

additional sales. For Ex: - Sales person of the Distributor are the ones who takes order from the retailers on daily

basis. Actually in this business retailer himself called up to the distributor or Sales officer about the order that he

supposed to be needed. Mostly order would be taken on calls so this would require less retailing by the sales

officer.

Order-Getter

For many businesses, the heart of the sales process rests with the creative selling efforts of their salespeople. Of

course, one of the greatest problems is that there are numerous order-handlers and order-takers in sales positions

that should have order-getters for optimum sales effectiveness. Clothing, furniture, jewelry, and appliances are

just some of the many items that call for order-getters (a person who can handle a transaction, take an order, and,

most importantly, get an order). As for services, the home security salesperson, for example, who calls on a

prospect because it is observed that the house has no dead bolt locks, is making that special effort to be an order-

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getter. Even though all sales situations do not call for order-getters, all salespeople will be called upon to sell

creatively from time to time. It is for this reason that all sales personnel need to have a working knowledge of the

creative selling process. For EX;- In first 20 days of my training I have to convince the retailer to give order to

me but after that retailers called me and said take my order of this much. Sometimes when retailers will not give

orders to us (me and my senior officer) then my senior officer uses tricks to convince the retailer to give orders

to us. For ex- If we have to sold a carton @ ₹71 and the other competitors was sold on @ ₹70 then we will give

a scheme like if they give an order of 50 cartons we will give him @ ₹70.50 or ₹69.50 . Or with a purchase of

100 cartons we will give one carton free. So in this way we get orders from the retailers.

Sales skills Process

The creative sales skills process consists of seven steps, none of which is less important than any other if the

process is to be effective. It should be emphasized to all employees that all steps are vital to the achievement of

effective sales.

Target Market Knowledge.

The better salesperson knows something of the likes and dislikes of the firms primary customers. The business

operator should tell all sales personnel about the business's customers and their lifestyles. Tell the salespeople

about customer's interests and their ability to buy. For EX- I come up with certain areas where only fortune or

local products are been sold and when I introduce with my product on the first note they say that here only these

products are sold as customers have taste preference and choices.

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Product Knowledge.

A salesperson gains confidence by knowing about the products and services that or she is sales. If a person sells

shoes, it helps to know the merchandise as well as how to fit them. If a person sells building materials, the sales

job is probably more effective if the salesperson can also help answer questions about home repairs. It helps the

person who sell clothes to know something about fabrics and current fashions. If the person is in the lawn service

business, that person should know about lawn care. Most sales personnel will not take the initiative to acquire

product on their own. It is management's responsibility to encourage employees to gain product and service

knowledge. Management should make such knowledge available to them. For EX;- It is very essential for a

salesperson. If you do not have a product knowledge then you could be caught. Product knowledge help us to sell

our product by doing comparison with other brands.

1. Prospecting

Although not appropriate to every sales situation, prospecting should be used whenever possible. Essentially,

prospecting involves not waiting for the customer to show up at a store or to phone about a service. It is concerned

with taking the initiative by going to the customer with a product or service idea. Prospecting may be of two

types: new or regular customer prospecting.

New Customer Prospecting. A salesperson sees that a person is getting married. Action is taken on this knowledge

by contacting the person and telling her about appropriate items (or services) that might be of assistance to a new

bride. By using newspapers and personal contacts, a salesperson can take the initiative to contact and create new

customers. For Ex;- In this type of sale when I know that one (prospecting customer) was selling other brands

and not ours so we on the spot go to him and ask why you did not sell our product and most of them said that no

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one go to them to display our product so in that way I had found many new prospecting buyer who also wish to

sell our product and are very interested to be a part of our company.

2. Approach

The salesperson should always focus on the benefits for the customer. This is done by using the product's

features and advantages. This is known as the FAB technique (Features, Advantages and Benefits).

* Features: Refers to the physical characteristics such as size, taste etc.

* Advantages: Refers to the performance provided by the physical characteristics eg it does not stain.

* Benefits: Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost. For Ex- when I

approached to the retailer I told him what benefits he was getting from our company, our products features and

why it was differs from others brands. If they have any query or want some other details I had provide him and

made him satisfied.

3. Sales Presentation

After the prospects interest has been grasped, the sales presentation is delivered. This involves a "persuasive

vocal and visual explanation of a business proposition". It should be done in a relaxed atmosphere to encourage

the prospect to share information in order to establish requirements. Some small talk may be necessary to

reduce tension but the purpose always remains business. For Ex- As in this business sales presentation is not

much required by the retailer but yes the good thing about the product, why it differentiates from other brands

what benefits he will get from our product and company.

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4. Handling Objections

Remember, if objections are present, progress is probably being made on the sale. Most salespeople are afraid of

objections. Stress to all employees that objection are a natural part of the sales process. They do not mean that the

sale is lost. In most cases, all that is required to overcome an objection is more sales on the part of the salesperson.

For ex- Many a times retailers have some kind of complaints with our product or they say that your product will

not sold because of customer choice and preference so at that time we solve their problems and some times they

were too harsh from us so I talk to my senior to handle that situation.

5. Closing the Sale (Closing Skills)

Close: when salesperson asks buyer for the sale

Good close

Reinforce decision to buy

Confirm implementation schedule

Thank the buyer

- For Ex;- When we are complete with are discussion and presentation most of the times retailer himself

closed the deal with a order of 1-5 cartons in initial stage or sometimes around 10 cartons in first order.

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6. Sales Follow-up

Although not apparent to many salespeople, follow-up is a part of every sale. The closing statement, "Thank you

for shopping at (name of store)," is a form of sales follow-up if done with enthusiasm. Unfortunately, just making

the statement in an automatic manner is about as effective as that other "worn out phrase," "May I help you?" If

done correctly, however, it allows the customer to leave on a positive note, thereby increasing the chances of

repeat business by the customer. For ex;- After selling of my product I regularly follow up the retailer if they

need something or if they have some queries and he was satisfied with our product and also they gives further

order as the sales of our product is high after they puts our product in their shop.

Attitude

A good salesperson will have a positive attitude toward customers, merchandise, services and the business. A

good attitude means that an employee is willing to accept suggestions, to learn and to apply the steps in the

creative selling process, and not to be afraid of work. A salesperson with a bad attitude can create unnecessary

problems. A bad attitude is contagious. If any employee is otherwise competent, management should work with

the employee to develop a positive attitude. Positive attitudes can result in sales. For ex;- When we go for retailing

we always have positive attitude doesn’t matter if I will succeed on that day or not and this help me a lot.

Personal Selling

• It refers to the presentation of goods and services before the customers and convincing them to buy the products

or services.

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• Personal selling is a part of Promotion mix which is a specific combination of promotional methods that includes

advertising, publicity and personal selling.

For Ex;- It helped me a lot many times I was alone on the field so I alone do the marketing and selling of my

product and I learn many things from that situation.

Diversities of selling situations

The two types of selling situations are:

• Service selling: Is the type of selling which is not complex is because the salesperson makes calls to customers

who are already aware of the company’s products.

• Developmental selling: The focus of this method of selling which is more complex than service selling is that

in this method the salesperson is aims at converting prospects into customers. It requires a lot of convincing as

the prospect may not be aware of the products or may be reluctant to leave his current supplier or somebody who

may not have a good opinion of your company’s products.

For Ex;- I have faced both the situations on the field where I met retailers who are already our customers and

those who are not and converting them into our customers.

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Routing Patterns

• Territorial routing is devising a travel plan or pattern to use when making sales calls to efficiently cover a

territory.

• A properly designed routing system has three primary advantages:

• Reduced travel time and selling costs

•Improved territory coverage

• Improved communication (since managers know where salespeople are)

• The number of calls to be made each day

• The call frequency on each class of customer

• The distance to each account

• The method of transportation

Four Types of Routing Pattern are:-

• Straight Line

• Circular

• Clover Leaf

• Hopscotch

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Routing Patterns are:-

1. Straight-line route

Salesperson starts at the office and makes calls in one direction until reaching the end of the territory.

2. Circular patterns

Salesperson starts at the office and moves in a circle of stops until ending up back at the office.

3. Cloverleaf route

– A cloverleaf route is similar to a circular pattern.

– But rather than covering an entire territory, the route circles only part of a territory.

– The next trip is an adjacent circle and the pattern continues until the entire territory is covered.

4. Hopscotch pattern

– The salesperson starts at the farthest point from the office and hops back and forth calling on accounts on either

side of a straight line back to the office.

So therefore I used cloverleaf pattern as I have to report to the office what I have done in the field on that day. So

in this way this pattern is used by me and I found it was a best method to follow as it saves time and money also.

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Monthly Sales Report

1. Bulandsheher Region

Monthly Sales Report

2. Moradabad Region

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Weekly Sales Report

3. Bareilly Region

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SUGGESTIONS OF RETAILERS AND CONSUMERS

1. Leakage of goods: - It is a major issue in this business as it reduces the profit margin for retailers as well

as distributor and it also made some loss to company.

- That occur during transportation should be looked into and the replacement of the damaged packets

should be given promptly.

2. Price:- I had found that retailers preferred fortune because they give profit margins high to the retailer as a

packet cost of Rs. 70 but retailer sold it in ₹77-78 where as in Gemini Vanaspati it cost ₹ 70 but retailer cant

sold it more than ₹72.

- The company should reduce the price of their products and increase the profit margins of the retailers as

compared to their competitors.

3. Information Gap: - There should be free flow of information between company and retailers.

- There should be a proper channel of information wherein any scheme introduced by the company should be

made known to the retailers at the earliest.

- Similarly if any scheme is introduced for the consumers then they should be made aware of this with the help

of print advertisement Such as television if possible.

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PROBLEMS FACED BY THE RETAILERS

1. Low margins: most of the retailers complained that they are getting very low margins as compared to

other brands in the same category that they were selling.

2. Leakage problem: the retailers also complained about the leakage problem which they were facing for

which they were not getting any replacements, not even the cartons so that they can shift the leaked

products to new cartons so that they can sell them.

3. Feedback problem: the retailers also complained that they were getting less feedback from the

company, like whenever any scheme is introduced by the company they are not informed about it at the

right time.

4. Quality problem: the retailers also complained that sometimes the quality of the product was so low

that it became a lot difficult for them to sell the product.

5. MRP problems: the retailers also complained that in the days of rising prices, they have to sell the

product at a price which is even lesser than the price at which they have purchased.

6. Problems related to new products: they also had the complained that whenever the company

introduces any new product, they are made aware of this at a very later stage.

7. Dumping Problem: Some of the distributor also complained of dumping of goods in their region which

will affect their market.

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HIGHLIGHTS OF SIP TRAINING

Learnings:-

1. How to pitching the retailer.

2. How to make calls and convert maximum no. of calls.

3. How to sell our product even there is no demand by the retailer side.

4. What sauda system, sauda expiry.

5. How to make new Distributors, new retailers.

6. Selling approach practically.

7. Managerial capabilities which we had to manage the salesman who accompanied us as well as the shop

owners Convincing capabilities.

8. Knowledge of how an oil industry works at the ground level.

9. Team management skills

10. Leadership skills

11. How to increase product visibility.

12. How to carry out daily activities in rigorous pressures.

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13. How to cover an untapped market where complete reach was not possible and then sustaining the sales in

the specified territory.

Findings:-

9. Sale of Gemini Vanaspati is low because there is low demand from the consumer side and also Dalda is cheaper

than ours so consumer asks for Dalda.

10. Our Major competitors are- Dalda, Mahakosh, Param, Gopal ji and some local brands like Khajoor, neelgagan,

Brijmohan.

11. Sale is depend on the area also as where people ask for specific brand only.

12. Because of off season sales will decrease as there is no festival, Marriages etc.

13. Dumping of goods from some other retailer or some other state is going on as complaint made by distributor.

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Terms and Terminology Used

1) Beat- The route list containing the names of the retail outlets that are being visited on a particular day.

2) Super Stockiest- A stockiest provides a local delivery point for the manufacturer/marketer. They store

the products, break bulk, and distribute to the distributors and retailers. With greater no. of retailers now

seeking credit from the retailer, efficient management and collection has become a vital part of the

stockiest job.

3) Carrying & Forwarding Agents- Carrying & Forwarding agents work on a commission basis. He acts

as a risk reducer for the company as he takes care of every risk involved in storing of goods in depot.

4) Distributer- A distributor provides a local delivery point for the manufacturer/marketer. They store the

products, break bulk, and distribute to the retailers and wholesalers.

5) Wholesalers- A wholesaler purchases his stock of goods from the distributors and sells them to the

retailers.

6) Sales officer- The sales head of a certain territory who manages and co-ordinates the sales within that

particular territory.

7) ISR- Interim Sales Representative. Employees of the company and on the payroll basis. They carry out

the sales operation in a particular territory.

8) DSM- Distributor Sales Man. Employees of the company but not on the payroll of the company. They

also carry out the sales operation in a particular territory.

9) Primary Sales- Sales of goods from the depot of the company to the super stockiest or the distributors.

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10) Secondary sales- Sales of goods done from the distributors or super stockiest to the wholesalers or

retailers.

11) Productive outlets- Outlets selling products of Cargill India Pvt. Ltd.

12) Unproductive outlets- Outlets not selling products of Cargill India Pvt. Ltd.

13) Sales Call- Visiting the respective outlets on a specified beat to take their respective orders.

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Limitations Of Project

1. Low Print & Media advertisements made us difficult to convince retailer to buy our product.

2. Time limitation was a big concern.

3. Excessive price fluctuation in oil market.

4. Convincing to the retailer in low income residential area was a tough task as they were very less health

conscious.

5. Some dispute between the distributor and retailer were unsolved.

6. Excessive dependence on price strategy of competitor market leader in oil segment.

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Benefits Derived

I learned a lot in this Summer Training Project that how to go in the market, how you take time from the distributor

and next day reach on that time sharp. Sometimes I faced challenges also of reaching late to the distributors point.

Then how to do retailing, sales process, rates are to be accordance with the retailer and how he have a relation

with the distributor. Sometimes I also faced the problems while retailing was that the retailer was having problems

with our product and to solve his query is a great task. I had a pressure of selling as distributor said you have to

sell these much cartons and we are unable to reach half of it because the sales is very low in these season but

many a times we overcome that target also. I also learn that placing of our product is how important for a

salesperson as it should be visible to the customer. Sometimes we have to do bargaining with the retailer so as to

take order from him and sold maximum cartons. Also I learn how to make new Distributors and retailers because

of that I have made 13 new retailers. If you have your product knowledge and if you can analyze the market

situation you can beat the other top brands. Many a times I am unable to solve the query of the retailers so I have

taken the help of my seniors. So in this way I get to aware how and what methods are to be followed to counterpart

that problem.

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CONCLUSION

Providing food product is a not everyone cup of tea. You cannot compromise in it and if you will try for it you

will not be able to sustain in the market for a long time. FMCG companies have to worry to provide that product

which is not only fulfilling the rules and regulation of government but also satisfy the customer. Cargill’s

products do exactly that and that is why it is chosen by CONSUMER VOICE. Consumer VOICE- a government

funded voluntary organization that works towards consumer education and awareness, conducted a laboratory

test on seven well-known brands of refined sunflower oil. After testing them on all possible parameters like

colour, adulteration, rancidity and fatty acid profile, Naturefresh Actilite and Gemini, brands from the house of

Cargill, were rated as the best quality and healthiest refined sunflower oils in the country. But still it is very

tough for Gemini to become no 1 in very near future because of the typical mind set of Indian consumer. To

achieve this position, Cargill first wanted to increase its product availability in the market and it did by the

expansion of coverage area. Now company is working on advertisements which are telecasting in most of

serials. It was a very big opportunity for any management student to work in such a big giant of a very huge

industry. The project was excellent and the learning was more than that. Cargill gave full freedom and ask to

perform like a manager. It was great to get the knowledge how to manage a territory in an industry like FMCG.

Learning was also valuable because meeting and working with such a big people of industry itself a big

experience. The project was basically based on opening of new outlets but it consist so many things in it which I

learnt like how to manage people? How get maximum output from the people? And how to make a balance in

sales. Gemini was a very good product and it gave me knowledge that if a company’s product is good then it do

not have to worry for things and competitors. Cargill gave me understanding that for any FMCG company it is

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very necessary that first it should make it base work very strong and then it should go for marketing or

advertisement. Cargill’s business strategy is also very good. Like my project Cargill is also doing the same

project of expansion of new stores in whole north to increase its visibility and sales. It was good to have your

product in most of the because it is known saying in Hindi “JO DIKHTA HAI WO HI BIKTA HAI”

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RECOMMENDATIONS

1. Consumers scheme: Launching consumer’s scheme could be another way of increasing sales like Dalda sale

went up because of the scheme of free bowl so similarly we can come up with other schemes like scratch card,

or a free cook-book etc.

2. Awareness: Making the costumers aware about the harmful effects of using cheap low quality oils and

highlighting health benefits of branded oils, then consumers will definitely ask for Vanaspati oils and not go for

any other brand. Overall customers are having delightful experience and the remaining can be cover being more

accountable to their grievances. In order to make people aware about the product, creative promotional

campaigns, some stalls should be conducted.

3. Product Positioning: Starting the Advertisement for Gemini oils with much focus on its ingredients & its

benefit for a human being. This way we can capture the market of saffola which is recommended for heart

patients.

4. Media marketing: This includes ads on TV aired at prime time shows. Tie up with certain cookery

programmers’ and the cook shown cooking dishes with Gemini oils.TV Commercial is the most important way

to make the people aware about Cargill products.

5. Product Bundling: To make people aware about other not so popular oil of Gemini. We can do- Joint

bundling – 2 products offered for one bundled price. Leader bundling – a leader product like Soyabean oil is

offered for discount if purchased with a non-leader product. The Company should also introduce new affordable

products for lower segment group.

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6. Packaging: Packing of the product is as important as the product itself.

7. Pricing: Organization should make sincere pricing for their core product because pricing is a very critical and

sensitive issue while launching any product or inducing more future in existing product in such a highly

competitive market.

8. Promotion: Organization should spend more in the process of advertisements, promotion, campaign and

they also have to strengthen their channels of communication with customer needs. The customers are still not

aware of the range of products, so the company must go for heavy promotion schemes.

The company should use new advertising channels i.e.

- Trailer in cinema halls

- Hoardings, banners, pamphlets

- Adds on social sites

- Sponsor any education scholarship or games

9. Relationship Building: Company should see to it that sales men are paying frequent visits at the modern

trade outlets. They should try to meet the requirement of the customers and the promoter must try to build a

healthy relationship with them.

10. Channel of Distribution: The Company should improve their channel of distribution, so that the problem

or the question of availability does not arise.

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11. Dumping of Goods: The Company also take care of dumping from other distributor so that it will not affect

the marketing of existing distributor in his region.

12. The company should try to make stronger Distributor who has a very good hold in the market and has a strong

financial backup.

13. There should be separate person in the market whose only job must be merchandising. He must make sure the

product is visible in the outlet and posters and danglers are properly paste and attached at proper place.

14. There must be regular surprise visit of higher officials to check the ground realities in that market.

15. There should be proper feedback for the retailers as well as customers whenever any scheme is introduced for

the retailers & customers they should be made aware of it. Sales representatives should be given guidelines to

intimate each and every retailer of his area about the schemes.

16. .Non monetary incentives should be also given to the retailers in each and every city. They should be given

glow sign boards and other sales promotional materials. This will boost up their spirits.

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Annexure

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Bibliography

Wikipedia the free encyclopedia

www.google.com

www.bizmove.com

www.marketingdonut.co.uk

www.cargill.co.in

www.bizjournals.com

www.niir.org