Ffinal Sai Kiran Chapters.docx

CHAPTER-I Introduction:“Consumer is the profit. Everything else is overhead” As the markets are moving in 21st century, that they have characterized by enormous change due to changing pattern of economical, political, legal, socio-cultural,

technological

and

natural

factors.

At

this

context,

manufacturing of a product has become a simple task but making the product into the hands of a consumer for consumption became a difficult one, since the consumer’s buying decisions have been varying from time to time based on their values, believes, attitudes, principles, opinions, interests, etc. The job of marketer has become too difficult in this changing scenario. However, understanding of the consumers’ perception towards the products and organization is a challenging task to the marketing people. Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. The key word is definition perception is individual; one person might perceive a fast talking sales person as aggressive, another as intelligent. People can emerge with different perception of the object Customers Oriented thinking requires the company to define customers needs from of view. Every product involves tradeoffs and management cannot know what there are without talking and researching customers. Thus a car buyer would like a high performance car that never breaks down, that is safe, attractively styled and also cheap or affordable for the people. Since all of these virtues cannot be combined in one car, the car designers must make hard choices not on what pleases them but rather on what customers prefer or expect from them or from the product that they are going to buy.

  

Significance of the Study:“Consumer is the King” “Consumer is the Sovereign” The above two punch lines describe the role of a consumer in the business. All the marketing activities resolve around creation of consumer satisfaction. The marketing manager is an accountable person from planning for a product to making the product available to the consumer for the purpose of consumption.

By keeping, these important functions the marketing

department draws a good number of policies and strategies. The sound marketing policy is one, which aims at identification of consumer’s needs, wants, and desires, designing of the products, goods and services and distributes them among the target group of consumers in an efficient manner where the cost, effort and time shall be optimally minimum. Generally, the consumers buying decisions are stimulated by various internal and external factors. Perception is one among the internal factors by which he / she formulates the purchasing decision. However, perception plays a significant role in designing of buying decision based on the influencers. An individual behaviour is often connected to his / her perceptions and may not be based on the ‘actual’ or ‘reality’.

For a marketer also,

understanding of consumer behaviour is very important. The behaviour of the consumer at the market place will depend on what he ‘thinks as a reality’ or on his perception and knowledge about the world around him. Thus, for having a better understanding of the buying behaviour of the individuals marketers must examine the importance of perception and its integration with the related concepts. This information will help him to device marketing strategies and programmes such as to help consumers to perceive their (firm’s) products or services positively.   

With this backdrop, the present project “Consumer Perception on CAPOL” is selected for his topic of the study and concentrates on identifying the perception of the consumers over the functions and services offered. Objectives of the Study:The chief purpose of the present project is to elicit the perception of the consumers over CAPOL besides the services that are received by him from the Oil Industry. However, a detailed set of the objectives are as follows: 

To examine the perception of the consumers to prefer CAPOL.



To identify the problems relating to “CAPOL” to Product, Price, Promotion and Distribution.



Finally, to suggest suitable measures based on the identified marketing problems for the well-being of CAPOL and the Public at large.

Methodology & Sources of Data:The study is empirical in nature because quantifying consumer perception is an impossible task since consumer perception is a psychological phenomenon, as it is based on data personally collected with the help of a schedule, where the respondents (consumers) are asked to express their amount of agreement in terms of excellent, very good, good, average and poor which can be seen from Appendix – I. A set of schedules have been used for collection of relevant data. The project trainee visited the sample respondents in Chirala and its surrounding areas to collect data.

While

collecting the data the project trainee got mixed up with the sample respondents. It also gave an opportunity to the project trainee to observe the various problems faced by the respondents. This enhanced the quality of the data obtained from the respondents. All attempts have been made to extract the correct information through informal discussion with the respondents.

  

Selection of the Sample:During this survey as many as 50 consumers have been chosen as sample consumers of Prakasam, Krishna, West Godavari Districts. In these districts some of the places surveyed are Chirala, Parchoor, Vijayawada, Machilipatnam, Palakollu, Penugonda. The required data for the present study has been collected from the above sample respondents, with the help of the Schedule exhibited in Appendix – I. Tools used for Analysis:Only percentages (%) are represented to analysis and interpret the data collected. Scope of the Study:The present project “Consumer Perception on CAPOL” makes an attempt to identify, evaluate and to provide numerous suggestions over the Marketing problems and no effort has been made on the other functional activities. Limitations of the Study:In spite of the fact that the project trainee has taken all necessary care to see that his project work is free from some inherent limitations, the present study still suffers from limitations as under: 

The project trainee confronted with several data collection problems. These are about both primary data and secondary data also.



While collecting primary data, the project trainee could not have collected the respondent’s real perceptions as some sort of personal bias of respondents crept in. Accordingly, the result interpreted in the report, have to be evaluated.

  



This project work also suffers from time constraints also. The quality of findings definitely could be better had the researcher devoted some more time, which was beyond his control.



It is also possible that conclusions and suggestions also to some extent are effected not only by the bias of the respondents but also of the researcher himself. In the light of the above limitations the present project work is to be

evaluated as for as quality is concerned the research has taken every care in minimizing the effect these limitations and in making it qualitative, acceptable and useful to all people concerned. Period taken for the Study:The present project “Consumer Perception on CAPOL”, has compiled with the help of the data collected for both primary and secondary by considering the marketing practices of CAPOL for 2013-2014 to 20172018 i.e., 5 years. Plan of the Study:The study has been divided into six chapters. The first chapter describes the problem of the study, to define its objectives and to discuss the methodology employed. Besides, efforts are also made to outline scope, period taken for the study and plan of the study with limitations of present study. The second chapter deals with conceptual framework of perception in terms of definition, elements, importance, theories, process, factors (both internal and external) and the marketing implications. The third chapter offers a comprehensive and exhaustive profile of Agro Products and Oil industry.

  

The fourth chapter highlights an extensive profile of CAPOL in terms of establishment, functions and services, the sample unit chosen for the project work. The fifth chapter deals with the data analysis and its interpretation with necessary tables and representations with tables and graphs. The sixth chapter analyzes various problems faced by the sample size and offers suggestions drawn from the study.

  

CHAPTER-II Introduction:There is usually a tendency on the part of the people to view the same phenomenon / event / situation differently. Different persons shall view the same event differently and thus respond in a different manner. This is a common occurrence among human beings. Because, as diverse individuals they have a natural tendency to consider ‘reality’ as a unique personal occurrence based on his / her needs, wants, attitude, belief, value system and past experiences. This kind of diversified behaviour among the human beings is spelled out as ‘Perception’. In general, the task of a marketing department of an organization ends with creation of consumer satisfaction rather than planning and designing of an offer. In this crucial juncture, the marketing people have to understand the behavioural pattern of the individuals i.e., consumers, by which they formulate purchasing decisions. The buying decisions of the target group are navigated by their individual and psychological factors like motivation, learning, perception, personality, etc. However, all the external and internal factors, which have been playing a vital role in making of purchasing decisions and in which, perception contributes a lot in determining of the needs, wants and desires of the target audience. Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. The key word is definition perception is individual; one person might perceive a fast talking sales person as aggressive, another as intelligent. People can emerge with different perception of the object Customers Oriented thinking requires the company to define customers needs from of view.

  

Every product involves tradeoffs and management cannot know what there are without talking and researching customers. Thus a car buyer would like a high performance car that never breaks down, that is safe, attractively styled and also cheap or affordable for the people. Since all of these virtues cannot be combined in one car, the car designers must make hard choices not on what pleases them but rather on what customers prefer or expect from them or from the product that they are going to buy. As the main aim is that after all to make a sale through meeting the Customers’ needs. The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. The process by which people translates the sensory impressions into a coherent and unified view of the world around them. Though necessarily based on incomplete and unverified (or unreliable) information, perception is equated with reality for most practical purposes and guides human behavior in general. Every product involves tradeoffs and management cannot know what there are without talking and researching customers. Thus a car buyer would like a high performance car that never breaks down, that is safe, attractively styled and also cheap or affordable for the people. Since all of these virtues cannot be combined in one car, the car designers must make hard choices not on what pleases them but rather on what customers prefer or expect from them or from the product that they are going to buy. 

Consumer Perception: Definitions: Perception is basically a cognitive process and an individual’s activities, emotions, feelings etc. are based on his / her surroundings or environment. – Sigmond Fraud   

Perception is the process of selecting, organizing and interpreting or attaching meaning to events happening in environment.

– L.M. Prasad

Perception is a mental process whereby an individual selects data or information from the environment organizes it and then draws significance – American Marketing Association

or meaning from it. Elements of Consumer Perception: 

Sensation



Differential threshold



Absolute threshold



Subliminal Perception

Consumer Perception Theories: Three areas of perception determine various perception theories like self perception, price perception and perception of a benefit to quality of life. Self Perception: Self perception theory attempts to explain how individuals develop an understanding of the motivations behind their own behavior. Self perception by customers relates to values and motivations that drive buying behavior -which is also an important aspect of consumer perception theory. For instance, a study by researchers at the University of Massachusetts at Amherst addressed how self perception shaped consumers' buying behavior. The study considered the question of whether consumers believed their buying decisions had a real effect on issues such as environmental impact. The researchers concluded that consumers' self perception was a driving factor in whether or not they placed a priority on socially conscious purchase and consumption practices. Consumers who viewed themselves as socially conscious tended to place more weight on issues such as environmental impact when making buying decisions than consumers who did not hold similar views of themselves.   

Price Perception: While mass merchandisers such as Wal-Mart emphasize low prices as an inherent virtue, upscale merchants attempt to emphasize quality and value for money to appeal to potential customers. Researchers at the School of Business Administration at LaSalle University and LeBow College of Business at Drexel University considered several factors, including price perception -- whether consumers believed they were being charged fair prices -- in determining whether online shoppers would make repeat purchases through the same website. The researchers concluded that price perception strongly influenced whether customers were satisfied with their purchases and whether they would make future purchases. Two factors that shaped price perception were the perceived quality of the merchandise or service in question and price comparisons. Benefit Perception: The benefit perception theory provides a colourful description over the consumer’s purchasing process and it favours that the consumer holds a product by identifying and evaluating the benefit sought out from a particular product or service. In general, the amount of the benefit, what the consumer shall have through a product is in the form of quantitative and qualitative. The quantitative factors, those are the external appeal of a product whereas, qualitative factors includes the internal appeal. Stages of Perception: Four distinct stages of perception occur during consumer information processing: 

Sensation



Interpretation



Attention



Retention

  

Sensation: Sensation describes what occurs when a person's senses are initially exposed to the external stimulus of a product or brand marketing. The sensory receptors of a consumer are engaged by product or brand cues through sight, sound, smell, taste and texture. For example, Starbucks engages all the senses in its sensory brand marketing. A customer who enters a Starbucks coffee shop may hear the sounds and smell the aroma of the grinding of fresh coffee in the store. Background music and a unique store design round out the experience of the taste of hot or cold coffee and food products that can be enjoyed in-store at quaint cafe tables. Attention: In consumer information processing, attention occurs when a person lingers and gives mental processing capacity to the external stimulus from a product or brand. Selective perception is when a consumer pays attention to messages that are consistent with her attitudes, beliefs and needs. When a product is inconsistent with these factors, the consumer will withdraw attention. Interpretation: Interpretation occurs when a person assigns a meaning to the sensory stimulus from a product or brand marketing. Comprehension is aided by expectations and familiarity. A consumer scans his memory to retrieve previous experiences with the brand or a similar brand. Store-brand marketing frequently capitalizes on the interpretation stage when product packaging design contains logos, colors and other elements that are similar to national brands that consumers are generally more familiar with.

  

Retention: The conclusion of the consumer perception process is the retention stage. This is marked by the storage of product or brand information in shortterm and long-term memory. The marketer's goal is to provide positive stimuli in the proceeding stages that translate into consumers storing the information about the product or brand into long-term memory. Factors Influencing on Perception: There is a tendency among people to consciously see and hear only certain aspects of the advertising message which is being communicated. Perception is a selection process. Usually, people are able to sense and receive only limited information from the environment and hence are characteristically selective. During the process of selection, certain aspects of stimuli are screened out and others admitted. These aspects of the stimuli which are admitted remain and fall within the threshold of the person based on the following presentation. Internal Factors P E R C E P T I O N

 Selective attention  Selective exposure, comprehension and retention  Perceptual Vigilance or defense  Expectation  Subliminal perception

External Factors  Intensity and Size  Position  Contrast  Novelty  Repetition  Movement

Intensity:  The intensity of stimulus implies that the more intense the stimulus audio or visual, the more is the likelihood it will be perceived. A loud noise, strong odour or bright light or bright colours will be more readily perceived than soft sound, weak odour or dim light. It is because of this advantage that advertisers employ intensity to draw the consumers' attention.   

Size: The size of the object or stimulus has a greater impact on the perception process because the size influences attention and recognition in a more effective manner. A Great Den dog which is tall attracts the attention. At the same time a pocket dog also attracts attention because of its size. However, generally the larger the object the more likely it will be perceived. The amount of attention enhances with the size of the newspaper advertisement exposed to the individuals although the increase in attention may not be directly proportional to the increase in size. Contrast: Contrasting objects have more impact on behaviour. The contrast principle states that external stimuli, which stand out against the background or which, are not what the people expect will receive attention. Plant safety signs, which have black lettering on a yellow background or white lettering on a red background, are attentions getting. Any change in the accustomed atmosphere attracts attraction. His if one or more of the machines should come suddenly to a half, the supervisor would immediately notice the difference in noise level, also, a person who has fallen asleep in a bus because of the drone of the engine wakes up immediately the engine stops. Repetition: Repeated stimuli have more impact on performances than a single statement. Repetition has the advantage of being attention catching. Perhaps, it is because of this that supervisors tend to repeat directions regarding job instructions several times for even simple tasks to hold the attention of their workers. Advertisers while putting T.V. or radio advertisements repeat the brand name they are advertising.

  

Movement: The factor of movement implies that the individuals attend to changing objects in their field of vision than to static objects. It is because of this advantage that advertisers involve signs, which include moving objects in their campaigns. At an unconscious level the animals in the jungles make use of this principle. A tiger lying in wait is motionless until his prey is nearer him and then jumps at an appropriate moment. Novelty and familiarity: A novel object in the familiar situation or a familiar object in a novel situation tends to attract attention. Thus a white person or a black person in India catches attention faster. Job rotation is an example of this principle. Recent research indicates that job rotation not only increased attention but also employees' acquisition of new skills. Situations: Situations have a great influence on people's perceptions. A favourable work environment develops a positive attitude and work culture because the perception process is easily channelised and rightly directed. Importance of Consumer Perception: The success of a business depends upon its ability to attract and retain customers that are willing to purchase goods and services at prices that are profitable to the company. Recent research indicates that job rotation not only increased attention but also employees' acquisition of new skills. Consumer perception describes how customers and potential customers view a company and its products and services. Consumer perception is important to businesses since it can influence consumer behavior, which ultimately affects the profitability of a business. Many businesses spend large amounts of resources to influence consumer perceptions.   

The Perceptual Process:  Sensation:

An individual’s ability to detect stimuli in the immediate environment.

 Selection:

The process a person uses to eliminate some of the stimuli that have been sensed and to retain others for further processing.

 Organization:The process of placing selected perceptual stimuli into a framework for “storage.”  Translation: The stage of the perceptual process at which stimuli are interpreted and given meaning. Key issues in Consumer Perception: 

Perceived Price





Perceived Risks



Information



Brand loyalty



Brand-store-image



Most expensive-Largest stores

Perceived Quality

Marketing Implications:  Selective Exposure  Selective Attention

 Perceptual Defense  Perceptual Blocking

  

CHAPTER-III Origin of Agro Industry: [

The beginning of 'agro' or 'agriculture' marks the beginning of

'civilized' or 'sedentary' society. Climate change and increase in population during the Holocene Era (10,000 BC onwards) led to the evolution of agriculture. During the Bronze Age (9000 BC onwards), domestication of plants and animals transformed the profession of the early Homo sapiens from hunting and gathering to selective hunting, herding and finally to settled agriculture. Eventually the agricultural practices enabled people to establish permanent settlements and expand urban based societies. Cultivation marks the transition from nomadic pre-historic societies to the settled Neolithic lifestyle some time around 7000 BC. As per the modern definition of agriculture which would be" an aggregate of large scale intensive cultivation of land, mono-cropping, organized irrigation, and use of a specialized labor force", the title "inventors of agriculture" would go to the Sumerians, starting ca. 5,500 BC 

Originally fields were cleared of weeds and prepared for planting by hand at great effort, using primitive hoes or digging sticks



The Renaissance saw the innovation of the three field system of crop rotation and wide spread usage of the moldboard plow



The early phase of Industrial Revolution witnessed new agricultural practices like enclosure, mechanization, four-field crop rotation and selective breeding



The science-driven innovations of 19th and 20th centuries led to the mechanization of the cultivation, i.e. the use of tractors.



The Muslim Farmers in North Africa and the Near East of the Medieval world are credited with inventions of extensive irrigation based on 

 

hydraulic and hydrostatic principles such as norias, water mills, water raising machines, dams and reservoirs

 The invention of the scratch plow (also called 'plough') about 6,000 years ago was a great labor-saving device for humans - the beginning of systematic substitution of other forms of energy, in this case animal power, for human muscles Meaning of Agro Industries: The

word

“Agro

Industries”

broadly

means

industries

manufacturing inputs for agriculture or the industries processing agricultural outputs. Agencies supporting agriculture by designing and manufacturing inputs are termed as “Agro Industries” and those supporting by agricultural products are termed as “Agro based industries”. Modern Agro industries manufacture chemicals and supply agricultural input either on each basis or realize the value in installments. According to planning commission “Any enterprise producing and supplying chemicals inputs to agriculture is an Agro based industry”. Agro industries and Agro based industries has increased in the same manner. We found the improvement not only in output of cotton but also in the whole range of plantations like tea, coffee, groundnuts, cashew nuts and course juts. Generally most of the industries use agriculture output as basic raw materials. But this concept defers in case of Agro industries. It is conformed to those industries that are engaged in processing the agriculture product either for consumption or for the use of industry. Since Agro industries directly influence the cost structure of forming Agro based industries. They have their impact on the receipts of the farmer Agro industries also serve as a mean for providing better employment opportunities to the labor during off-season. The purpose of establishing Agro industries co-operation is not only to equip former with modern   

implements, but also to train them in the operation of machines, which in the early state of mechanization and nationalization of agriculture. Features of Agro-Industry: 

Oils - primarily a commodity market – price sensitive



Effective distribution chain – through a complex network of C & F agents, wholesalers / stockiest & retailers (kirana shops, supermarkets)



Oil sold in bulk (tin, HDPE containers) to institutions - In retails packs (PET bottles, cans, jars, pouches) to small customers



Seasonal demand for oils & vanaspathi – September to November (peak season)



Regulation - Under the Edible Oils Packaging (Regulation) Order, 1998, edible oils cannot be sold loose’ but can be sold only in ‘packed’ form



Oil consumption – North is largest market, followed by South, West & East Zones

Imports and Prices: 

Oils and vanaspathi substitutes can be freely imported under OGL



Import duties - 15% basic + 10% surcharge (Oil); 40% basic (Oilseeds)



Large scale imports of oils and vanaspathi substitutes - primarily to check price rise and meet supply shortages

Usage: 

Oil and Vanaspathi used as cooking media (in households, hotels, restaurants, canteens, institutions)



Vanaspathi used as an industrial input - for making bakery products confectionery

  

Future: 

Macroeconomic factors : Population growth, per capita income, purchasing power, oilseeds crop



Influence of branded products – ‘health’ message



Growing preference for convenience foods



Raw material sourcing : focus on improving yields, getting better quality oilseeds, ensuring regular supplies – through symbiotic relationship with frame

Role of Agro Industry in India: Agriculture in India, the preeminent sector of the economy, is the source of livelihood of almost two thirds of the workforce in the country. The contribution of agriculture and allied activities to India's economic growth in recent years has been no less significant than that of industry and services. The importance of agriculture to the country is best summed up by this statement: "If agriculture survives, India survives". Indian agricultural production in most parts of the country is closely related to skillful and wise water-management practices. Most of the agricultural practices in India confined to the few monsoon months. During the monsoon season, India is usually endowed with generous rainfall; although not infrequently, this bountiful monsoon turns into a terror, causing uncontrollable floods in parts of the country. In a matter of antithesis, every few years, the monsoon is erratic and deficient, leading to drought and the possibility of famine. This explains the inextricable link between Indian Agriculture and effective water-management practices known across different parts of India since the ancient times. According to the history of the Indian agriculture water-management practices are known to have either been taken up by the state, or by local   

village communities since the earliest times. Regional rulers, or local representatives of the state were generally obliged to allocate a certain percentage of the agricultural taxes on building and managing water-storage, water-harvesting and/or water-diverting structures which facilitated a second crop, and provided water for drinking and other purposes in the long dry season. The British rule witnessed the destruction of century-old water management structures and a virtual wreckage of the knowledge systems and cultural traditions that had helped build and preserve these water-management techniques over the centuries in states such as Bihar, Bengal, Karnataka, Tamil Nadu and others. Owing to this, during the colonial era, famines were frequent and famine commissions were abundant. The growth rate in food production during the 1900-1947 periods was hardly 0.1 per cent. Most of the important institutional developments in agriculture emanated from the recommendations of famine commissions. The great Bengal Famine of 194243 provided the backdrop to India’s Independence. The stagnant performance of agriculture in India during the colonial period was turned into a sustained growth since 1947, with a stronger performance in India especially in terms of per-capita food production The early years of Independence witnessed accentuation on the development of infrastructure for scientific agriculture. The steps taken included the establishment of fertilizer and pesticide factories, construction of large

multi-purpose

irrigation-cum-power

projects,

organization

of

community development and national extension programmes and, above all, the starting of agricultural universities as well as new agricultural research institutions across the length and breadth of the country, However, the growth in food production was inadequate to meet the consumption needs of the growing population which necessitated food imports.   

Green, White and Yellow Revolutions 

Policy makers and planners, in order to address the concerns about national independence, security, and political stability realized that selfsufficiency in food production was an absolute prerequisite. This perception led to a program of agricultural improvement called the Intensive Agriculture District Programme (IADP) and eventually to the Green Revolution. The National Bank for Agriculture and Rural Development (NABARD) was set up. All these steps led to a quantum jump in the productivity and production of crops. 

The Green revolution generated a mood of self-confidence in our agricultural capability, which led to the next phase characterized by the Technology Mission. Under this approach, the focus was on conservation, cultivation, consumption, and commerce. An end-to-end approach was introduced involving attention to all links in the production-consumption chain, owing to which progress was steady and sometimes striking as in the case of milk and egg production. Categories of Agro Industry: 

Village Industries owned and run by rural households with very little capital investment and a high level of manual labour; products include pickles, papad, etc.



[

Small scale industry characterized by medium investment and semi-

automation; products include edible oil, rice mills, etc. 

[

Large scale industry involving large investment and a high level of

automation; products include sugar, jute, cotton mills, etc. The development of agro-based industries commenced during preindependence days. Cotton mills, sugar mills, jute mills were fostered in the corporate sector. During the post-Independence days, with a view to   

rendering more employment and using local resources, small scale and village industries were favored. The increasing environmental concerns will give further stimulus to agro based industries. Jute and cotton bags, which have begun to be replaced by plastic bags, have made a comeback. It is the right time to engage in mass production of low cost jute/cotton bags to replace plastic bags The agro industry helps in processing agricultural products such as field crops, tree crops, livestock and fisheries and converting them to edible and other usable forms. The private sector is yet to actualize the full potential of the agro industry. The global market is mammoth for sugar, coffee, tea and processed foods such as sauce, jelly, honey, etc. The market for processed meat, spices and fruits is equally gigantic. Only with mass production coupled with modern technology and intensive marketing can the domestic market as well as the export market be exploited to the fullest extent. It is therefore imperative that

food

manufacturers

understand

changing

consumer

preferences, technology, with modernization, innovation and incorporation of latest trends and technology in the entire food chain as well as agroproduction, the total production capacity of agro products in India and the world is likely to double by the next decade. India is the second largest producer of food in the world. Whether it is canned food, processed food, food grains, dairy products, frozen food, fish, meat, poultry, the Indian agro industry has a huge potential, the significance and growth of which will never cease. Sea fishing, aqua culture, milk and milk products, meat and poultry are some of the agro sectors that have shown marked growth over the year’s linkages between members of the food supply chains and prevailing policies and business environments to take advantage of the global market.

  

Processed Food Segment: [

The processing level of the agro industry may be at the primary, secondary or tertiary stage. In the case of hides and skins, India exports largely semi-processed items whereas in coffee/tea, the exports are mostly in secondary stage by way of fully processed bulk shipments without branding / packing. Exports at the tertiary stage mean branding and packaging the product that are ready for use by the consumer. A few years ago, companies struggled to sell packaged foods. But now it is much easier to break into the Indian market because of a younger population, higher incomes, new technologies and a growing middle class, estimated at 50 million households. An average Indian spends around 53 per cent of his/her income on food. The domestic market for processed foods is not only huge but is growing fast in tandem with the economy. It is estimated to be worth $90 billion. Processed Food Manufacturing companies are required to be persistent and must adapt products to the Indian cultural preferences. Many big companies like ITC, HLL, and Nestle entered the Indian market a long time ago and have made a deep penetration in the market. From these success stories we can learn some lessons in order to capture the higher end of the local market and get a fair share of the export market. The model is structured around the following:

Large scale investment and adoption of the latest technologies



Intensive marketing efforts



Perhaps, a foreign tie-up can be beneficial



Brand name.

(A) 

BACKGROUND: India – one of world’s leading producers of oil seeds (9.3%) and oil 

 



Technology Mission on oilseeds set up in 1996



Oilseeds have support price mechanisms



India – second largest importer of edible oils (2 million MT)



Vanaspati – a substitute for ghee, formed by hydrogenation of crude vegetable oil.



Free pricing in Vanaspathi since 1989; de-licensed in 1992



Oil season – November to October

(B)

Major Players EDIBLE OILS

(C)

VANASPATHI

National Dairy Development Board

Hindustan Lever

(Anand)

(Mumbai)

ITC Agro-Tech (Secunderabad)

Wipro (Bangalore)

Marico Industries (Mumbai)

Rasoi (Calcutta)

Ahed Mills (Mumbai)

Avi Industries (Mumbai)

Industry Market Structure



Highly fragmented industry



Over 600 oil extraction units, 166 vanaspathi manufacturing units - Only 10 edible oil units and 8 vanaspathi units have national reach



Over 50% of the units – sick or underutilized due to surplus capacity



Idle capacities among these units due to shortage in feedstock supply



Major oil brands – Sun drop Dhara, Saffola, Sweekar, Postman



Vanaspathi brands - Dalda Rath

  

(D)

Capacities:

Installed Capacity and Production Installed Capacities and Production – in MT per year Vanaspathi

Edible Oils

2,720,000

30,368,000

Productions

990,534

6,250,000

Utilization

36%

21%

Capacity

Key Inputs, Technology Inputs Vanaspathi - Minor (solvent extracted) edible oils – Sunflower oil, Soyabean Oil, Ricebran Oil. Edible Oils - Oilseeds such as Groundnut, Sesame, Mustard, Sunflower and oil cakes and bran Raw materials comprises 70% of the production cost Oilseeds – the largest cash crop Poor productivity – 873 Kg/ hectare (global average of 2000 kg/ hectare). Though oilseeds have 14.5% share in gross cropped area, only 25% of it is under assured irrigation. Technology: Refining technology freely available indigenously (E)

Key success factors:



Branding essential for success (Vanaspathi – 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



Free imports, low import duties and slump in global prices – lead to ‘dumping’

  



Domestic industries of edible oils and vanaspathi affected – low realization and idle capacities in oil and vanaspathi industries Business Production slippages have also forced imports Concerns Excessive (cheap) imports of oilseeds – led to Unremunerative prices, locally



Increasing health awareness – impact of oils and vanaspathi usage in individual’s cholesterol levels This industry is a high volume, medium growth sector characterized by excess / idle capacities owing to in efficient operations. Imports have been influencing prospects, leading to domestic industry crisis.

  

CHAPTER-IV About CAPOL: CAPOL is an oil producing Company at Jandrapet near Chirala. It has acquired much importance at Prakasam District in A.P. This is because of extensive cultivation of cotton by the farmers. Cottonseed is separated from the cotton Kappas in Cotton Ginning Mills and it would be sold to the Manufacturing Industries/Oil Companies for manufacturing of various by products like cottonseed hulls, soap stock, animal feed, lint etc. Further, the products of CAPOL like de-oiled cake are also exported to Japan, Thailand, Malaysia, West Germany, Switzerland etc., Therefore the study on marketing mix of the CAPOL has assumed a greater significance in recent times. The success of any organization depends mainly of three functions of the management namely production, finance and marketing. Selling has predominant importance in marketing procedure. Cottonseed crushing industry is one of the Agro based industries. Cottonseed is used in the manufacturing of edible oils, cakes, liner, hulls and oil. India is the third largest edible oil based economy in the world after United States and China.

India accounts 9.7% to the global oil seed

production. The main production of this industry is edible oil. Most of the people habituate to use groundnut oil for cooking purpose. To meet the competition CAPOL is manufacturing cottonseed oil at a lower price than groundnut oil. Thus it underlines the importance of marketing activities of CAPOL, Chirala. CAPOL has been located in Jandrapet village at Chirala and are measuring across 23.68 acres. The plot has acquired from the Government of A.P on the basis of 9 years lease. The sight is favorably located in respect of all facilities.

  

This is registered in 12th Dec, 1975 and Commencement of business was started from 5th Jan, 1976. This CAPOL has made a joint venture with APIDC and signed on 1st Feb, 1976 CAPOL got the license in 13th Aug, 1975 and it is transferred to 13th Feb, 1976. Objectives of the CAPOL: Following are the objectives of the company: 

To acquire, promote, establish and carry on business of manufactories oils from cottonseeds. Castor linseed, sunflower, Rice bran and other type of edible and non crushing solvent extraction, chemical or any other process and to utilize, sell the oils and cakes to be produced or acquired for edible purpose of in any type or processing i.e., ordinary crushing solvent extraction, chemical or any other and to utilize sell the oils cakes to be produced or acquired for edible purpose or in any industry in the manufactured of nutrition tools, soaps, cattle fed, manure, fatty acids, perfumes, chemical or any other and to utilize sell the oils cakes to be produced or acquired for edible purpose or in any industry in the manufactured of nutrition tools, soaps, cattle fed, manure, fatty acids, perfumes, chemical and other products in which such oils, cakes are utilized.



To erect, take on lease or otherwise acquire establish plantation and other lands, or free hold, leasehold, or the other tenure and in particular lands producing or likely to produce, cotton seeds and other seeds and also grants concession claims, licenses and authorities of any description over any such lands.



To carry on in India or every where in any part of the world the business of spinning weaving of manufacturing or dealing in cotton or other fibrous substances, the preparations, dyeing or coloring of any of 

 

substances, the preparations, the pressing of sand otherwise dealing with cotton seed and extraction of oil and other such products. There fourth refining and treating of such products and subjects them to further processor of manufacture. 

To act as stockiest, a commission agent, representatives or agents, selling and purchasing agents, distracters, brokers of edible oils. Since neither organizational requirements nor individual attitude and abilities are ever constant. Individual employee careers must be of concern to organizations and mangers in order that humal1 resources may be developed to meet constantly changing environmental conditions. A career is a sequence of separate but related work activities that provides continuity, order, and meaning to a person's life. It is shaped by a myriad of factors including heredity, culture, parents, schooling, age level, family circle, and actual experiences in one or more organizations. An effective career development program provides complete information concerning career opportunities within the organization. The major ingredient is that of aligning individual careers with career opportunities through a continuing program of training, education, transfer, and advancement. Major current problems



To manufacture and deal in all kinds of plant machinery apparatus tools utensils, materials and things necessary or convenient for carrying on any of the main objects of the company.



To buy, sell, manufacture, plant, prepare, treat, alter, exchange, hire, let on hire, import, export dispose and or deal in all kinds of articles and things which may be required for the purpose of any of the business which the company is expressly or by implication authorized by this memorandum at carry on.

  



To establish, appoint, regulate and discontinue offices, agents, representatives, distributors or retailers in all such places as the company may from time to time determine for carrying out all or any of the company’s objects and to acts agents for the other.

Market Competitors of CAPOL: The following cotton seeds processors are the major competitors to CAPOL 1. The Andhra Sugars Ltd, Pericherla. 2. G.P. Industries ltd, Timmapuram. 3. Dhanalakshmi Cotton & Rice Mills Ltd., Dokiparru. 4. Kallern Agro Products & Oils Ltd., Kokiparru. 5. Sri Srinivasa Cotton & Oils Ltd., Pedanandipadu. 6. BGIT Oils Industries – Pericherla. (Bharat General Textiles Industries) A part from the above said competitors there are some other oil processors in Andhra Pradesh. 1. ATR Oils Industries Ltd., -Adoni. 2. Sri Venkata Narasimha Solvent Oils Ltd., -Warangal. 3. Srba Agro Industries - Raningavaram. 4. Om-Oil Agro Industries – Tadepalli. Through the company is facing competition from the above set competitors, it has good market for its finished products in the market the competitor is depending upon the quality and availability of goods, said the competition through around the millers. After the employee has been recruited, selected, and inducted, he or she must next be developed to better fit the job and the organization. No one is a perfect fit at the time of hiring, and some training and education must take place.   

Development should include both training to increase skill in performing a specific job and education to increase general knowledge and understanding of our total environment. There are two broad groups of individuals to be trained, operatives and managers. The four basic systems of operative training are 1. On-the-job training, 2. Vestibule schools, 3. Apprenticeship programs, 4. Special courses. Effective operative training should increase productivity, reduce costs, heighten morale, and promote organizational stability and flexibility. With the more complex nature of the executive job, manager development involves both training and education. Decision-making skills ate enhanced through business games, case studies and in-basket exercises. Interpersonal skills can be promoted through role-playing, behavior modeling, sensitivity training, transactional analysis, and structured insight. Job knowledge can be acquired through experience, coaching, and understudy systems, while organizational knowledge can be developed through position rotation and multiple management. In addition, one's general educational background can be developed through special courses, meetings, and a reading program, while specific individual. Deficiencies can be addressed through special projects and committee assignments. Organizational development is an intervention strategy where by the general environment is altered to emphasize collaboration, competence, confrontation, trust, candor, and support. Particular intervention technique would include team development processes, survey feedback, and inter group confrontation sessions.   

Despite the multiplicity and complex nature of many training and educational program most development occurs on the job. But such development is slowed and less effective if the employee is not systematically appraised and fed back information concerning her or his quality of performance. All employees are appraised on their job perforn1ance in some manner or another. In general, it can be said that the choice lies among three possible approaches: A casual, unsystematic, and often haphazard appraisal the traditional and highly systematic measurement of (a) employee characteristics, (b) employee contributions, or (c) both. Mutual goal setting through a Management by Objectives (MBO) Though the casual approach is perhaps the most commonly used, various studies have revealed an increase in the number of firms choosing some formal type of appraisal. One-third of the firms having programs reported utilization of the most recent innovation, Management by Objectives. There are a number of different types of systems for measuring. The excellence of employee performance. Some of the traditional performance appraisal systems are 1. Ranking 2. Person-to-person comparison 3. Grading 4. Graphic scales 5. Checklists 6. Forced-choice description 7. Behaviorally anchored rating scales   

8. Expectation scales (BES) 9. Observation scales (BOS) 10.Essay 11.360 degree observation Most important than the rating form or method is the quality of the rater. In most situations, the rater is the immediate superior of the person to be rated. Higher management, thereby maintaining hierarchical control over the appraisal process, often reviews supervisor ratings. If more involvement is deemed desirable, the appraisal process can be undertaken by a group of raters. Members of the group can be superiors, peers, and subordinates. Sometimes the management allow the subordinates to rate themselves. The most frequent rating schedules are semiannual and annual. New employees are rated more frequently than older ones. Management by Objectives is far more than just an appraisal process. To many, it is a fundan1ental way of managing, in which periodic appraisal is but a part. Orgal1izations are composed of a multitude of people, performing various and specialized activities, supposedly thereby contributing to basic organizational objectives. Central to MBO is a joint and mutual establishment' of end results for individual key personnel. Equally essential is periodic joint appraisal when assessments are made concerning degrees of accomplishment. When organizational activities are closely interlocking, it is recommended that team or group goal establishment precede the identification of individual responsibilities and goals. Modem personnel management must look beyond the present assignn1ent n career mal1agement would include dealing with the platitude employee and recruiting and utilizing dual-career couples. The low-ceiling career provides an unusual challenge in alignment of human needs and organizational requirements. Perhaps the major factor in the   

management of low ceiling careers is that of seniority. Precision of measurement of seniority calls for a multitude rules governing techniques of accumulation, special treatment of protected groups, and units (occupation, department, company) in which it can be accredited to the person. In making the many necessary personnel decisions in an organization, seniority can be mixed with ability in various ways; for example, when ability is equal, seniority governs. In any event, career development requires proper recognition of employee increase in experience, seniority, skills, and abilities. The success of any organization depends mainly of three functions of the management namely production, finance and marketing. Selling has predominant importance in marketing procedure. Cottonseed crushing industry is one of the Agro based industries. Cottonseed is used in the manufacturing of edible oils, cakes, liner, hulls and oil. India is the third largest edible oil based economy in the world after UNITED States and China.

India accounts 9.7% to the global oil seed

production. The main production of this industry is edible oil. Most of the people use groundnut oil for cooking purpose. To meet the competition CAPOL is manufacturing cottonseed oil at a lower price than groundnut oil. This itself underlines the importance of marketing activities of CAPOL, Chirala. CAPOL has been located in Jandrapet village at Chirala and are measuring across 23.68 acres. The plot has acquired from the Government of A.P on the basis of 9 years lease. The sight is favorably located in respect of all facilities. This is registered in 12th Dec, 1975 and Commencement of business was started from 5th Jan, 1976. This CAPOL has made a joint venture with APIDC and signed on 1st Feb, 1976 CAPOL got the license in 13th Aug, 1975 and it is transferred to 13th Feb, 1976.   

Personnel management can be defined as the management of personnel at work. It has been differently defined by different authorities. the gist of all the definitions quoted above is that the personnel management is the since of planning, organizing, and controlling the various operative functions of procuring, developing, maintaining and utilizing the labour force for the purpose of contributing towards the accomplishment of the major goal of the organization.  General Manager

      

Personnel Officer

Security Officer

Sr. Clerks

Head Guards

Jr. Clerks

Security Guards

 The Personnel Officer is directly responsible to the General Manager. He will directly, issues orders to his subordinates, The Personnel Officer look after the entire personnel department to the company. There are one section in-charge under control of Personnel Officer .He is responsible for Time Office and Weigh Bridge. There are three Assistants under the control of Personnel Officer.

One will be leading the public

relations, Liaison with Departments and submission of statutory Returns and making Statutory Payments i.e. P.F, E.S.I etc in every month and year and keep all the records including Statutory records.

One will be responsible for

preparation of payments to Workers and Staff with the help of Man Power and Attendance .and another will be looking the attendance, and workers welfare activities.   

Security officer is in charge of watch and time keeping department. He is responsible for security of factory. Awards: CAPOL was awarded prized for best stalls in 1978. CAPOL received prose as “Best Exporter in India” in 1979 in CDs extractions and cakes from Union Minister, Government of India. Among oils mills CAPOL stood first in safety competition and received prize from chief inspector of factors, Andhra Pradesh. For the year 1993-1994, “Council for Industrial Trader and Development India” selected company for its quality and productivity and also received “Gold Udyog Patra” awarded through Sri.Pranab Mukarjee, honorable union Minister and deputy chairman for planning commissions. On this occasion M.D. facilitated at Rashtrapathi Bhavan by Honorable President of India, Dr. Shankar Dayal Sarma. The company also received awards from all cottonseed crushers association for being the 3rd highest exporter and 2nd domestic seller of cottonseed for the year 1992-1993. The company has received an award from All India Cottonseed Crusher’s Association for being the highest exporter and highest domestic seller of cottonseed extractions for the year 1993-1994. As in the past, the industrial relations remained cardinal during the year under reviews the directors also wish to informed that the company has been awarded

“MAY

DAY

COMMAN

DATION

CERTIFICATE”

by

Government of Andhra Pradesh for its continuous hormones relation with its employers. In addition to this, Workers Trade Union of the company is also awarded “Best Trade Union” by the Government of AP for this best relation with their best relations with the management for the year 1995.

  

Organizational Structure: The CAPOL is organized by a board of Directors. Under the board of directors there is a chairman. The chairman controls the Managing Directors. There are General Manager and Production Manager under the control of the Managing directors. The General Manager organizes the overall activities of the company. He has under his direct control of Finance Department and responsibilities of the company secretary.

Besides he has also under him a Commercial

Department. Under him maintenance engineer, material procurement officer, packing section in charge, personnel officer and security officer, In Finance Department there are two responsible persons. They are Assistant Finance Manager Accounts Officer cum Administrative Officer. Under the Production Manager the Plant Engineers, In-Charges of C.S.P. Plant, Oil Mill, Solvent Extraction Plant, Refinery and Laboratory are working. Plant Engineers functions are to rectify mechanical defects to make machinery run smoothly and maintain co-operation of the production activities. The Personnel Officers is responsible for recruitments of personnel in organization, functions and ensure the disciplined working of the employees. The security officer is in-charge of watch and time keeping departments. He is responsible for security of factory assets and equipment.

  



Board of Directors

 

 Managing Directors

  

General Manager

  

Production Manager

Marketing Manager

Finance Manager

  

Administrative Officer

Account Officer

Clerks

Clerks

Board of Directors: 

Sri Maddi Lakshmaiah



Sri Maddi Ramesh



Sri Vadlamani Venkata Subramanya Ravi



Sri Maddi Venkateswara Rao



Smt Rallabandi Lakshmi Sarada



Sri Lakkaraju Shyam Prasad

  

Assistant In-charge Exports

CHAPTER-V 1.

Age-Group wise Distribution of Respondents Table No. V.1 Age-Group Wise Distribution of Respondents Age

No. of persons

Percentage %

18-25 years

10

20

25-35 years

17

34

35-50 years

16

32

50-60 years

7

14

Interpretation: According into age group wise distribution of respondents table, we know that 37% of people belong to age group 25-35 among the total respondents. 32% of people belong to age group 35-50 among the total respondents. 20% of people belongs to age group 18-25 among the total respondents and 14% of people to belong to age group 50-60 among the total respondents. Graph No. V.1(a) Age-Group Wise Distribution of Respondents 34

32

35

Percentage %

30

25

20 14

20 15 10 5 0 18-25 years

25-35 years 35-50 years Age

  

50-60 years

2.

Educational Background of Respondents Table No. V.2 Educational Background of Respondents Educational level

No. of persons

Percentage

Illiterate

5

10

Primary Education

9

18

Higher Education

8

16

Intermediate

5

10

Degree

17

34

6

12

Post-graduate Interpretation:

According the educational background table we know that 34% of people belongs to degree level education among that total respondents 18% of the people belongs to primary education level, 16% of people belongs to higher educational level, 12%of people belongs to inter level education and no educational level respectively. Graph No. V.2(a) Educational Background of Respondents 18 16 18

14 12

16

Percentage %

14

10

10

12 10 8 6 4 2 0 Illiterate

Primary Education

Secondary Education

Intermediate

Educational Level

  

Degree

Post-graduate

3.

Occupation of the Respondents Table No. V.3 Occupation of Respondents Occupation

No. of persons

Percentage %

Daily-wage worker

21

42

Business

7

14

Private Employee

12

24

others

10

20

Interpretation: According to the occupation of the respondents table, we know that 42% of the people belongs to lab our occupation among the total respondents. 24% of the people belong to employee occupation among the total respondents. 20% of the people belongs to other occupation and 14% of the belongs to business occupation among the total respondents. Graph No. V.3(a) Occupation of Respondents 42 45 40

Percentage %

35 30

24

25

20

14

20 15 10 5 0 Daily-wage worker

Business

Private Employee Occupation

  

others

4.

Income-wise Distribution of the Respondents Table No. V.4 Income-wise Distribution of Respondents Income

No. of persons

Percentage %

Below Rs.5,000

18

36

Rs.5,000-10,000

8

16

Rs.10,000-15,000

14

28

Rs.15,000 and above

10

20

Interpretation: According through income-wise distribution of respondents table, we know that 36% of the people belong to monthly income level below Rs.5,000 among the total respondents. 28% of the people belongs to monthly income level Rs.10,000-15,000 among the total respondents an 20%, 16% of people belongs to monthly income levels Rs.15,000 and above and Rs.5,000-10,000 respectively. Graph No. V.4 Income-wise Distribution of Respondents

40

36

35 28

Percentage %

30 25

20

20

16

15 10 5 0 Below Rs.5,000

Rs.5,000-10,000

Rs.10,000-15,000

Income

  

Rs.15,000 and above

5.

Brand Reference of the Respondents Table No. V.5 Brand Reference of the Respondents Brand Name

No. of persons

percentage

Cotton seed oil

9

18

Soya been oil

4

8

Sunflower oil

16

32

Groundnut oil

9

18

Any other refined oil

12

24

Interpretation: According to the brand reference table, know that 32% of the people give preference to sunflower brand among the total respondents. 20% of the people give preference to any other refined oil among the total respondents. 18% of the people give preference to cotton seed oil, 18% of people give preference to soya bean oil among the total respondents. Graph No. V.5(a) Brand Reference of the Respondents 32

35

Percentage %

30

24

25 20

18

18

15 8

10 5 0 Cotton seed oil

Soya been Sunflower Groundnut Any other oil oil oil refined oil Brand Name

  

6.

Respondents Opinion on Price Table No. V.6 Respondents Opinion on Price Opinion

No. of Persons

Percentage %

Low

4

8

High

12

24

Reasonable

34

68

Interpretation: According to opinion on price table, we know that 68% of the people say reasonable price among the total respondents and 24% of people say high and 8% of the people say low price among the total respondent. Graph No. V.6(a) Respondents Opinion on Price 68 70

Percentage %

60 50 40

24

30 20

8

10 0 Low

High Opinion

  

Reasonable

7.

Channel of Product Awareness Table No. V.7 Channel of Product Awareness Channel

No. of persons

Percentage %

Through friends

10

20

Doctors advise

7

14

Through retailers

20

40

others

13

26

Interpretation: According to channel of product awareness table, we know that 40% of people know about the product through retailers among the total respondents 26% of people know about the product through others, 20% of people know about the product through friends and 14% of people know about the product advice among the total respondents. Table No. V.7(a) Channel of Product Awareness 40 40

Percentage %

35 26

30 25

20

20

14

15 10 5 0 Through friends

Doctors advise

Through retailers

Channel

  

others

8.

Point of Purchase Table No. V.8 Point of Purchase Point

No. of Persons

Percentage %

Retail shop

8

16

General shop

22

44

Super market

12

24

Other shops

8

16

Interpretation: According to point of purchase table, we know that 44% of people purchase the product from general shop among the total respondents. 24% of the people purchase the product from super market and 16% of people purchase the product from retail shop and other shop respectively among the total respondents. Graph No. V.8(a) Point of Purchase 44 45 40

Percentage %

35 30

24

25 20

16

16

15 10 5 0 Retail shop

General shop Super market Point of Purchase

  

Other shops

9.

Opinion about the quality of CAPOL Table No. V.9 Opinion about the Quality of CAPOL Opinion about

No. of Persons

Percentage %

Good

24

48

Very Good

14

28

Poor

8

16

Very Poor

4

8

Quality

Interpretation: According to the above table, Opinion of Respondents about the quality of CAPOL, 48% of respondents are of Good opinion and 14% of respondents are of very good opinion about the quality of CAPOL. Only 8% and 4% of the respondents are Poor and Very poor opinion respectively about the quality of the CAPOL. Graph No. V.9(a) Opinion about the Quality of CAPOL

Percentage %

48 50 45 40 35 30 25 20 15 10 5 0

28 16 8

Good

Very Good

Poor

Opinion about Quality

  

Very Poor

10. Opinion about the Taste of CAPOL Table No. V.10 Opinion about the Taste of CAPOL Opinion about

No. of Persons

Percentage %

Good

28

56

Very Good

14

28

Poor

5

10

Very Poor

3

6

Taste

Interpretation: According to the above table, Opinion of Respondents about the Taste of CAPOL, 56 % of respondents are of Good opinion and 14% of respondents are of very good opinion about the Quality of CAPOL. Only 5% and 3% of the respondents are Poor and Very poor opinion respectively about the taste of the CAPOL. Graph No. V.10(a) Opinion about the Taste of CAPOL 44 45 40

Percentage %

35

30

24

25 20

16

16

15 10 5 0 Retail shop

General shop Super market Point of Purchase

  

Other shops

11. How did you know the Brand Name of CAPOL Table No. V.11 Know about the Brand Name of CAPOL Opinion about knowing the

No. of Persons

Percentage %

Brand

18

36

Economy

16

32

Shop Display

10

20

Advertisement

6

12

Brand Name

Interpretation: According to the above table, the majority (36%) of the respondents know about the Brand Name of CAPOL, 16% of respondents think of the Economy of CAPOL Brand, 10% of Respondents know about the Brand name by shop display and only 6% of the respondents know by Advertisement of the Brand name of CAPOL. Graph No. V.11(a) Know about the Brand Name of CAPOL 40

36 32

Percentage %

35 30 25

20

20 12

15 10 5 0 Brand

Economy

Shop Display

Advertisement

Opinion about knowing Brand name

  

12. Do you know C.S. Oil? Table No. V.12 Opinion of knowing about the C.S. Oil Opinion about knowing the

No. of Persons

Percentage %

Yes

38

76

No

12

24

C.S. Oil

Interpretation: According to the above table, the majority (76%) of the respondents know about the C.S. Oil and only 24% of the respondents don’t know about C.S. Oil of CAPOL. Graph No. V.12(a) Opinion of knowing about the C.S. Oil

Percentage %

76 80 70 60 50 40 30 20 10 0

24

Yes

No Opinion

  

13. Name of the Oil which you are using for cooking purpose? Table No. V.13 Oil using for Cooking Purpose Oil using for

No. of Persons

Percentage %

CAPOL

20

40

Kallam

18

36

G.P. Oil

8

16

Andhra Sugars

4

8

cooking

Interpretation: According to the above table, the majority (40%) of the respondents use CAPOL oil for cooking purpose, 36% of respondents use Kallam Oil, only 16% and 8% of respondents use G.P. Oil and Andhra Sugars respectively. Graph No. V.13(a) Oil using for Cooking Purpose 40 36

40

Percentage %

35 30 25 16

20 15

8

10 5 0 CAPOL

Kallam

G.P. Oil

Oil Brands

  

Andhra Sugars

14. Consumption of Oil per month Table No. V.14 Consumption of Oil per month Consumption of

No. of Persons

Percentage %

2 kg

30

60

4 kg

12

24

6 kg

6

12

Above 6 kg

2

4

oil per month

Interpretation: According to the above table, the majority (60%) of the respondents consume 2 kg. of oil per month. 24% of respondents use 4 kg. of oil and 12% of respondents use 6 kg. of oil per month and only 4% of respondents consume above 6 kg. of oil per month. Graph No. V.14(a) Consumption of Oil per month 60 60

Percentage %

50 40 24

30 20

12 4

10 0 2 kg

4 kg 6 kg Above 6 kg Consumption of Oil per month

  

15. Purpose of Consuming Oil Table No. V.15 Purpose of Consuming Oil Purpose of

No. of Persons

Percentage %

Taste

6

12

Health

22

44

Curiosity

2

4

Cooking

20

40

Consuming Oil

Interpretation: According to the above table, the majority (44%) of the respondents consume oil for health purpose, 40% of the respondents consume oil for Cooking purpose, and only 6% and 2% of the respondents consume oil for Taste and Cooking purpose respectively. Graph No. V.15(a) Purpose of Consuming Oil 44 45

40

40

Percentage %

35 30 25 20 15

12

10

4

5 0 Taste

Health

Curiosity

Purpose of Consuming Oil

  

Cooking

16. Respondents opinion about the price Table No. V.16 Respondents Opinion about the price Opinion about

No. of Persons

Percentage %

High

8

16

Fair

32

64

Low

10

20

price

Interpretation: According to the above table, the majority (64%) of the respondents are of the opinion of Fair Price of the Brand CAPOL, 20% of the respondents are of the opinion of low price and only 8% of the respondents opined that the price of the Brand CAPOL is High. Graph No. V.16(a) Respondents Opinion about the price 64 70

Percentage%

60 50 40 30

20

16

20 10 0 High

Fair Opinion about the Price

  

Low

17. Respondents opinion about the availability of C.S. Oil of CAPOL Table No. V.17 Respondents Opinion about the availability of C.S. Oil Opinion about availability of

No. of Persons

Percentage %

Easily available

32

64

Rarely available

18

36

C.S. Oil

Interpretation: According to the above table, the majority (64%) of the respondents are of the opinion that C.S. Oil of CAPOL is easily available and only 36% of the respondents opined that C.S. Oil of CAPOL is rarely available. Graph No. V.17(a) Respondents Opinion about the availability of C.S. Oil 64 70

Percentage %

60

36

50 40 30 20 10 0 Easily available

Rarely available

Availability of C.S. Oil

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18. Respondents opinion about the Stickiness of the C.S. Oil of CAPOL Table No. V.18 Respondents Opinion about the stickiness of C.S. Oil Opinion about

No. of Persons

Percentage %

Yes

28

56

No

22

44

stickiness of C.S. Oil

Interpretation: According to the above table, the majority (56%) of the respondents are of the opinion that C.S. Oil of CAPOL is sticky and 44% of the respondents opined that C.S. Oil of CAPOL is non-sticky. Graph No. V.18(a) Respondents Opinion about the stickiness of C.S. Oil 56 44

60

Percentage %

50 40 30

20 10 0 Yes

No Stickiness of the oil

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19. Respondents opinion about the Usage of C.S. Oil of CAPOL Table No. V.19 Respondents Opinion about the usage of C.S. Oil Opinion about usage

No. of Persons

Percentage %

Regularly

38

76

Occasionally

12

24

Interpretation: According to the above table, the majority (76%) of the respondents use C.S. Oil regularly and only 24% of the respondents occasionally use C.S. Oil of CAPOL. Graph No. V.19(a) Respondents Opinion about the usage of C.S. Oil 76 80 70

Percentage %

60 50

24

40 30 20 10 0 Regularly

Occasionally Usage of C.S. Oil

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20. Respondents’ opinion feeling of any improvement regarding this oil usage in their daily cooking. Table No. V.20 Respondents Opinion about improvement of using in the daily cooking Opinion about

No. of Persons

Percentage %

Less Cholesterol

20

40

Easy to Digest

16

32

Minimizing Obesity

8

16

Tasty Food

6

12

improvement in usage

Interpretation: According to the above table, the majority (40%) of the respondents are of the opinion that by using C.S. Oil of CAPOL their Cholesterol is becoming less and 32% of the respondents are of the opinion that it is easy to digest, 16% of the respondents opined that for minimizing obesity is the reason for using C.S.Oil and only 6% of the respondents find that the food is tasty by using C.S. Oil of CAPOL. Graph No. V.20(a) Respondents Opinion about improvement of using in the daily cooking

Percentage %

40 40 35 30 25 20 15 10 5 0

32

16 12

Less Cholesterol

Easy to Digest

Minimizing Obesity

Improvement after Usage

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Tasty Food

CHAPTER - VI Summary CAPOL as incorporated as a public limited company to acquired. Promoted, establish and corn on business of manufacture of oils from cotton seed, ground nut, sunflower, rice bran and other type of edible and non-edible oil seeds by any type of processing. The company has entered into a joint venture promotion agreements with A.P. industrial development corporation (APLDC). The company has started its commercial production from 25 th June 1998. The company has established the project at a cost of Rs.170 lakhs out which Rs.65 lakhs companies of equity and preference share capital. At present the company has sufficient installed capacities. They are: 1.

Cottonseed processing plants and oils mill.

2.

Solvent extraction plant.

3.

Refinery crude.

4.

Animal feed plant.

Findings 

Majority of the respondents are of the age group 25-35 years.



Majority of the respondents are well educated as their education level is Degree.



Majority of the respondents are daily-wage labour.



Majority of the respondents are of Income group of Below Rs.5000.



Majority of the respondents i.e., 32% give reference to sunflower brand of CAPOL.

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Majority of the respondents i.e, 68% opined the CAPOL products are having reasonable prices.



Majority of the respondents know about the product through retailers

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44% of the respondents purchase the product from general shop. So the products are easily available.



Most of the retailers are aware of CAPOL.



CAPOL is ranked first on availability of Cottonseed oil brand.



I.T.C. oil was ranked first for quality by most of the retailers.



I.T.C. brand oil highly priced and G.P. industries are low priced.



The credit terms are very good in case of CAPOL.



Retailers give much importance to suggest the CAPOL, because it is local company and easily available.



Retailers also feel that the cotton oils increase the human body heat.



In villages, the customers are prepared to sell the oil by loose like 10ml, to 250ml.



Retailers are interested in the brand, which gives the most profit margins.



Indirectly customers are depending upon the retailers to select the brand

Suggestions 

To incur work profits ever if there is fluctuations in the production of cotton oil seeds it is better to produce both cotton seed oil and sunflower oil simultaneously on the same existing plants.



The sunflower oil seeds can be procured from Rayalaseema area because of its high production. The CAPOL and the sunflower seeds from the local formers by attracting them. In the form of gibing than good quality 

 

seeds and financial assistance. The company (CAPOL) can sell bulk amount f sunflower oils through brokers like cottonseed oil and sell it with 15-kg lines through whole sales. The CAPOL has already good contact with the whole-sales. So no problems are arisen. By this you can get the more brand image. By producing sunflower oil you can enter into retail market like ITC. 

“Extrude” is the new equipment entering in the oil industry” through their equipment the company can process all types of oil expect rice bran. It minimizes the consumption of electricity, maximizes the reduction capacity of the company and also utilizes the full capacity of the company and also utilizes the full capacity of solvent extraction plant. If there will be more demand for oils. You can use both “extruder” and “expeller” and produce a more quality to aware palate the demand. This yields more projects.



The CAPOL can produce soya been oil by using “extruder”. The soya bean prices are cheap as comparative to other seeds. At final production this yields de-oiled cake. It has much demand in near feature because it is using new in modern food products. The A.P. government. Recently given license and various subsidies are given to them.



The company had four branch offices, locating at Hyderabad, Kakinada, Guntur and Chirala. For improving the brand image and retail sales, the CAPOL must open the own shops and can sell the oils on the bass of no profit no loss principle. The supervision of the CAPOL branch officer.



The promotional activities must improve sales of any product advertisements improve the sales, CAPOL is at position that it can not



Fare more budget on advertisement in local and regional reputed papers. Demonstrations, display boards, pop material are also improving the 

 

sales. 

Personal setting is required to meet the competition. Advertisement should be sponsored through on variety of media to enable everyone to know about the product. External information about marketing is more important to the company. Marketing research should conduct in these aspects. The company has a potential export market with regard to export. More care should be taken to insure quality, attractive and safe packing and also competitive prices to withstand international standards.



Generally, the purchase decision of edible oil is depending on the female buyers. So CAPOL should attract the target marketers through the free gifts which are useful to them.



In the customer point of view, they hoped cotton oil will increase the body heat. But actually, it is not the case. So CAPOL takes care about the product knowledge for the customer also cotton oil.

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