Introduction of industry

INDUSTRY PROFILE
India accounts for 9.3 percent of world oilseed production. It has the world’s
fourth largest edible oil economy. Yet, about 43 percent of edible oil
available in India is imported. In 1999 India ranked as the world’s largest
importer of edible oils, displacing China. The bulk of edible oil India imports
under the Open General License (OGL) are RBD Palmolein of Malaysian
and Indonesian origin.
India has approximately 300 crude edible oil refining units, 60-70 percent
of which are small, unlike the bigger refiners. The small ones are unable to
import huge quantities of crude either due to their low capacity or lack of
financial resources and may be forced to close down or sell out to the bigger
ones in the foreseeable future.

The total import of edible oils during the period from November 1998 to
October 1999 totaled 4.4 million tones valued at more than Rs. 9000 crores.
That was against a demand –supply gap of 1.4 million tones in 1998-99.
Imports have therefore deluged the market.

The import of relined palm oil was put under OGL (Open general License) in
March 1994. Other edible oils were put under OGL in April 1995 (when an
item is brought under OGL, it means that the item can be imported without
seeking any approval).

Originally, there was no discrimination between refined and non refined

edible oil as far as import duty concerned. The duty on both was 65 percent.
Duty was the slashed to 30 percent for both, then to 20 percent in 1996 and
15 percent in 1999-2000 budgets.

On December 30, 1999 a differential duty structure was introduced. Duty on

refined oil was fixed at 27.5 percent (25 percent plus 10 percent surcharge)
while that on crude was retained at 16.5 percent (15 percent plus 10 percent
surcharge) But only actual users (as opposed to traders) are allowed to avail
of this reduced duty on crude oil. Traders are nevertheless allowed to import
crude at the reduced duty but only to sell to actual users on a high seas basis.
This requires that the actual users fills in the import documents (and pays the
reduced duty) but leaves the importing process to the trader.

In most parts of the world, the import duty on oilseeds is lower than that on
oils. But, in India it is higher 40 percent. That is why no import of oilseeds
of oil bearing material has taken place in India. The industry wants the duty
to be lowered from the present 40 percent to 5 percent.

Edible oils prices in the Indian market have crashed due to large imports by
multinational trading houses see table.

Oilseeds and edible oils are two of the most sensitive essential commodities.
India is one of the largest producers of oilseeds in the world and this sector
occupies an important position in the agricultural economy and accounting
for the estimated production of 28.21 million tonnes of nine cultivated
oilseeds during the year 2007-08.

IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S ECONOMY

2
Oilseeds and edible oils are two of the most sensitive essential commodities.
India is one of the largest producers of oilseeds in the world and this sector
occupies an important position in the agricultural economy and accounting
for the estimated production of 25.14 million tonnes of nine cultivated
oilseeds during the year 2003-2004. India contributes about 8-9% of the
world oilseeds production. Export of oil meals, oilseeds and minor oils has
increased from 2.28, million tones in the financial years 2003-2004. In terms
of value, realization has gone up from Rs.2653 crores to Rs.5447 crores.
India accounted for about 6.4% of world oil meal export.
India is fortunate in having a wide range of oilseeds crops grown in its
Different agro climate zones. Groundnuts, mustard/rapeseed, sesame,
safflower, linseed, Niger seed/ castor are the major traditionally oilseeds.
Soya been and sunflower have also assumed importance in recent years.
Coconut is most important amongst the plantation crops. Efforts are being
made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in
addition to Kerala and Andaman and Nicobar Islands. Among the non-
conventional oils, rice bran oil and cottonseed oil are the most important. In
additional, oilseeds of tree and forest origin, which grow mostly in tribal
inhabited areas, are also a significant source of oils.

YEARS-WISE EDIBLE OILS IMPORTS

3
 The domestic prices of various edible oils are largely correlated. Palm oil,
being the cheapest oil, impacts the price movement of other oils. Palm, soya and
rapeseed (mustard) together account for 73% of edible oil consumption in India, with
palm oil accounting for 44% of total consumption. Market share of soya & palm oils
have gained significantly over the years, due to increased access to imports. The
strong growth of soya and palm oil consumption reflects Indian consumers’
sensitivity to prices.
Non-packaged oils are estimated to account for nearly 50% of consumption in
both urban and rural markets. However, the development of the retail sector in India,
backed by rising income levels, has provided an opportunity to sell branded packs
especially in the urban markets. The branded segment is growing at 20% annually
with sunflowers and soy oils leading the market.

4
 EDIBLE OILCONSUMPTION

VEGETABLE OIL

India is the third largest producer of oil seeds in the world. Oil seeds, although
occupying only 10 percent of the country’s total cultivated land, play a dominant role
in India economy. A very wide range of oilseeds including mustard, groundnut,
sunflower, sesame, rapeseed safflower, Niger, soya bean, linseed and castor,
packaging plays a very vital role preventing such quality deterioration of oils and
scope for the project.

Plant capacity: 16.00 MT/Day

Plant & machinery: Rs. 39 lacs
Working capital: Rs. 681 Lacs
T.C.I: Rs. 886 Lacs.
Return: 66.99%
Breakeven: 74.00%

5
 PALM OIL

Over the last three decades or so palm oil has made aggressive in road into the
world market for oils and fats. It is now a close second behind soybean oil in terms of
world production. The predictions that very soon palm oil may overtake soya bean oil
as the world’s largest source of edible oils. Though palm oil is the world’s second
largest in terms of production, for many years now it is already the leader in the
export trade. The world demand for edible oil is expected to witness further growth
but also an expansion in per capita intake. Every year, the demand is going to grow by
more than 3 million tones. This provides very good scope for new investment.

Plant capacity: 24.0 MT/Day

Plant & machinery: Rs. 102.00 Lakhs.
Working capital: -T.C.I: Rs. 368.00 Lakhs.
Return: 43.79%
Breakeven: 47.7%

6
 EDIBLE OIL INDUSTRY – CURRENT SCENARIO

DEMAND SCENARIO:

EMBED Excel.Chart.8 \s Indian edible oil demand witnessed a4.5% CAGR over the
last decade and is projected at 16.2 mn MT for 2010-11. India has an important role to
play in the global edible markets, accounting for10.2% of the consumption share, 7%
of oilseeds production share, 5% of edible oil production share and 13%of global
edible oil imports share for oil year 2009-10
Oil production share and 13.6% of global. According to USDA estimates, India is the
World’s third-largest edible oil consumer (after China and the EU), expected to account
for 11% of the world’s demand for edible oil and 16% of global imports in 2010-11.

DOMESTIC DEMAND OF EDIBLE OILS

7
 CONSUMPTION SENERIO:
Indian edible oil consumption is varied in preference across regions, owing to
taste and availability. Going by volumes, palm, soya bean and mustard/rapeseed are
India’s three major edible oils and cumulatively account for 75% of the total demand.
While India produces mustard oil almost entirely, soya bean oil is imported in
significant quantities (about45-50%). Palm oil is imported entirely in its crude form
for port-based refineries, while a certain quantity is also imported in its refined form.
Owing to consumer cost economics and taste preferences, these three edible oil
varieties are expected to dominate the consumption mix. Therefore, companies with
an exposure to these oil types stand to benefit. Given the inherent price volatility,
participants with a diverse presence in all edible oil categories will benefit than
participants focused on a single oil variety, owing to flexibility in modifying
Product portfolios in line with market realities. As per industry data, about
31% of urban households and about 9% of rural households consume branded edible
oils with the national average at around 16%. This represents a significant untapped
opportunity with a potential to grow to USD 13.5 bn by2015.

CONSUMPTION OF DOMESTIC EDIBLE OIL

8
BRANDED OIL SALES:

Owing to a large number of unorganized participants in India’s edible oil

market, the share of branded product sales remained low, while low-income
remained low, while low-income consumers opted for cheaper grades of oil
in loose forms.

According to industry data, 31% of urban households and

9% of rural households consume. Branded edible oils compared
with a national average of 16%.Given the low branded oils
market penetration, rising affluence levels and Indian consumers
becoming quality-conscious. There is significant growth
expected in the branded segment. Among the major edible oils
consumed, palm oil is still traded and sold mostly in loose form
with packaged sales contributing 15%-20% of total sales. On the
other hand, sunflower and soya oil have a high. Proportion of
sales. On the other hand, sunflower and packed sales at around
70% and 55% of total sales respectively.

9
INDIA OPPRTUNITY:

The Indian market represents significant opportunity for edible oil players
owing to a
Growing, population, income growth, low per capita consumption, low
penetration and the fact that edible oils are a necessary input in the diet for
most Indian consumers. Per capita consumption: The Indian annual per
capita consumption grew steadily from 4 kg in the 1970s to 10.2 kg in the
late 1990s to 13.5-14 kg in2010-11. However, it is still below the
2010-11. however, it is still below the global average of around 24 kg,
signaling high growth industry potential.

PALM OIL: THE NEXT BIG OPPURTINUTY.

Soy bean and rapeseed crop output hardly growing; palm
oil emerged as the answer to India’s edible oil consumption. The
share of palm oil in India’s consumption is expected to increase
from 31% in2007 to 46% in 2011 due to the following reasons:
Easy availability from Malaysia and Indonesia, cheaper
alternative which suits the price-conscious Indian consumer and
zero duties on CPO.

10
11
 COMPANY PROFILE

JVL AGRO INDUSTRIES LTD VARANASI

JVL Agro Industries Limited ,

FORMALLY KNOWN AS JHUNJHUNWALA VANASPATI
LIMITED, incorporated in the year 1989, manufactures
hydrogenated vegetable oil (Vanaspati Ghee) and refined oils,
at its manufacturing facility in Varanasi, Uttar Pradesh located
in North India. What started as a modest unit, with a
production capacity of 25 MT/day is today the single largest
manufacturing company of hydrogenated vegetable oil in
India producing over 300 MT/day. The name of the company
was changed from Jhunjhunwala Vanaspati Limited to JVL
Agro Industries Limited on 21.10.2008.

The brand name ‘Jhoola’ is

synonymous with branded oil and ghee in
India. With a vision of commitment to
unparallel quality & complete customer
satisfaction the brand, JHOOLA has made
its own way in the heart and minds of
millions of customers all over the country. The Company is

12
having a strong marketing network in U.P., Bihar, Bengal and
Assam.

Incorporated as a modest manufacturer of hydrogenated

vegetable oil or vanaspati ghee at 25 tons per day, JVL Agro has
grown to be the largest single unit manufacturer of vanaspati in
India. We use a modern mechanical physical process technique
instead of a chemical synthesis technique to bring our customers
the best and healthiest quality of branded hydrogenated
vegetable and refined oil. This stringent attention to quality,
hygiene, safety and customer satisfaction brought us an ISO
9001-2000 accreditation, making us one of the first
organizations in this industry to receive this certification.
We are headquartered in Varanasi with satellite offices in
Alwar, Kolkata, Mumbai, Delhi and Singapore. Our vanaspati
manufacturing unit in Jaunpur (Uttar Pradesh) and Pahleja
(Bihar), along with our mustard oil manufacturing unit in Alwar
(Rajasthan) constitute our domestic and international presence.
We are listed on the Bombay Stock Exchange (BSE) and
Kanpur Stock Exchange in India.

Date of Establishment: 1989.

Revenue: 489.076 (USD in Millions)
Market Cap: 2013.9096 (Rs. in Millions)

13
CorporateAddress:Jhunjhunwala,Bhawan,N
ati Imli,Varanasi-221001,UttarPradesh
HYPERLINK "http://www.jhoola.com"www.jhoola.com

14
MANAGEMENT DETAILS:
Chairperson: - D N Jhunjhunwala

MD: - S N Jhunjhunwala

Directors: - Adarsh Jhunjhunwala, Alka Khemka, D N

Jhunjhunwala, D N Jhunjhunwala, H L Agrawal, H L Agrawal,
Harsh Agarwal, Kahayan Lai Goenka, Kanhaiya Lal Goenka,
Mahesh Kedia, Rohit Kumar Jaiswal, S K Dikshit, S N
Jhunjhunwala, S K Dikshit, S N Jhunjhunwala, Shyam Poddar,
Sunil Kumar Tripathi

Business Operation:-Consumer Food.

Background:-

JVL Agro Industries was formerly known as Jhunjhunwala

Vanaspati. Jhunjhunwala Vanaspati, incorporated in the year
1989, manufactures hydrogenated vegetable oil (Vanaspati Ghee)
and refined oils, at its manufacturing facility at Varanasi in Uttar
Pradesh. What started as a modest unit, with a production
capacity of 25 MT per day is today the single largest
manufacturing company of hydrogenated vegetable oil.

Financials Total Income: - Rs. 22054.8 Million

(year ending Mar 2011)
Net Profit - Rs. 500.2 Million (year ending Mar 2011)

Company Secretary:-Rohit Kumar Jaiswal

15
 Bankers Auditors:-Garg & Co

Competitive Edge:
JVL Agro is committed to delivering high quality products
to guarantee complete customer satisfaction. For over 20 years,
our brand, Jhool, has been used by housewives in kitchens across
the country as a brand they depend on for their family. This is
our greatest strength.

The road ahead integrates our reach across the country with the
goodwill we have, our experience, our recognition and our
alliances.

IMPORTANT ASPECTS OF JVL

We possess a product basket extending from vanaspati to

various refined oils.
We have a leadership position across two of India’s most
densely populated states.
 Our brand is visible and attractive.
 We possess a scale that is economical.
 We provide enhanced value to all our stakeholders.
 Our quality assurance, guaranteed by the ISO 9001-2000 certification.
 We are in sync with our customers wherever they are.
16
R & D:
Our business model extends backwards into plantations on the
one hand and agro-food products on the other, thus setting the
foundation for an agro food conglomerate in the years to come.
We have installed a 3 MW Cogen power plant for capting
use of low cost power generation for our Naupur unit and
extracted steam being used for processing. This reduces a further
processing cost of the unit with substantial margin.
This not only help us in reducing the processing cost but
also maintain regular production schedule even in the power
break down period.

ACHIVEMENTS AND AWARDS:

Being a pioneer in the field, the company’s brand Jhoola

was recently awarded “Globoil Gold" award, 2006 as the fastest
growing Vanaspati Brand in India by Glob oil India.
Emerging company of the year 2007. Awarded by Glob
oil. Mr. S.N.Jhunjhunwala selected as global man of the year
2008 by the award committed of global India.

17
Vision:
To delight the consumer through a complete vegetable
oils solution, through continuous research and development
in healthier oil varieties, leading to a single-stop
convenience.

Mission:
We expect to extend our leadership from saturated fats
to the entire vegetable oil segment in the first stage and then
to agro-based premium food products thereafter, from one
18
region in India to a global manufacturing and marketing
presence.

19
PRODUCTS:
Vanasapati (Hydrogenated oil) Refined oils (Palm and
soya) and mustard oil.

20
21
IDENTITY:
Promoted by Mr. D.N Jhunjhunwala in1989; commenced
operation through the establishment of 25 MT/day hydrogenated
vegetable oil unit.

ASSETS:
Operations carried out at three state-of-the –art manufacturing
facilities in utter Pradesh (Varanasi), Rajasthan (Alwar) and
Bihar (Dehri –on-sone).A new plant being proposed for Haldia in
2011-12.

RECOGNITION:
Recognized as the fastest growing brand in 2006 and emerging
company of 2007 by Globoil India ;( Managing Director)
honored as globoil Man of the year 2008 for his industry
contribution.

22
PRESENCE:
Headquartered in Varanasi (Utter Pradesh), India, with offices in
Delhi, Mumbai and Kolkata and a subsidiary in Singapore .The
Company also acquired additional land at Haldia for further
expansion.

MARKETS:
Products available across North, Central, NorthEast India,
covering 18 states and two Union Territories.

LISTING:
Equity shares listed on National Stock Exchange, Bombay
Stock Exchange. Delhi Stock Exchange and Utter Pradesh Stock
Exachange. Stock split from one share to share of Rs.10 each
into 10 shares of Rs. 1 each.

23
MILESTONE AND ACHEIVEMENT
1990:
Commenced production with a 25 TDP capacity.

1993:
Achieved 100 TDP productions at Varanasi.

1995:
Switched vanaspati processing from chemical to modern
mechanical technology.

1999:
Installed a 60 TDP unit for refined oil at Jaunpur,
introducing crude soya bean and palm olien oil.

2000:
Increased vanaspati production capacity to 200 TDP.

24
2005:
Introduced a fractionation unit of 2oo TDP capacity.

2006:
Acquired Rajasthan- based mustered oil seed- crushing and
refining plant.
Invested in Adamjee Extraction, Sri Lanka, to import saturated
fats under the Jhoola brand.
Product sales in the states of U.P. Bihar, Jharkhand, Madhya
Pradesh, Uttaranchal and Chhattisgarh.

2007:
Emerged as the first Uttar Pradesh vanaspati manufacturer to
commission a 3-MW power plant.
Formed a wholly-owned Singapore subsidiary under JVL
overseas Pte Ltd.
Introduced products in the northeastern states.

25
2008:
Commissioned an edible oil refinery/saturated fats unit in Bihar
Initiated de- oiled cake export. Commenced production of a
new refinery in Uttar Pradesh, plant supplied by Alfa Laval with
the latest technology.

2009:
Commenced commercial production from the Bihar unit.
Introduced products in Jammu and Kashmir, Himachal Pradesh
and West Bengal.

2010:
Commenced development of the Haldia unit with 1,200 TDP
refining capacity,capative power plant and oleochemical section.

2011:
Become listed in National stock exchange
Global India Legend 2011 award received by the chairman of
JVL AGRO INDUSTRIES LTD.

26
STRATEGIC CORPORATE PILLARS OF COMPANY

Experience: JVL possesses over two decades of rich

experience in the vegetable oil industry.

Brand: The Jhoola brand is available across 18 Indian states

and two union territories, enjoying a market-leading share in
central India’s edible oil market.

Product range: JVL provides an extensive range of

vegetable oils comprising refined (palm oil and soya oil),
saturated fats (vanaspati) and mustard oil.

Relationships: JVL enjoying long-term relationship with

plantation owner in Indonesia and Malaysia ensuring timely and
cost-effective raw material delivery.

Logistics: JVL positioning as northern and central India’s

largest crude oil importer translates into better bargaining and
logistics competitiveness.

Scale: JVLS saturated fats manufacturing unit is the single –

largest in India, resulting in optimized production and conversion
costs.

Integration: JVL is integrated from plantation access to

product packaging (18,00,000 HDPE jars per annum and
42,00,000 tins per annum as well as manufacturing container
handles and caps).

27
 Energy: JVL invested in a 3-MW captive power plant in its
Varanasi facility,

Quality:
JVL is certified for the prestigious ISO 9001-2008.

Distribution:
JVL enjoys an entrenched presence in North India through a
distribution network comprising over 30 depots, over 5,200
dealers and thousands of retail outlets.

Customization:

JVL caters to the needs of various Indian consumers through

various packages ranging from 200 ml to 15 liters to 15 kg.

Customer-centric:

JVL offers customers a superior price-value proposition in terms

of product diversity, customization and service.
28
29
 AREA OF SURVEY VARANASI
The art and culture of Varanasi is unique. It is the rich
cultural tradition of Varanasi that makes it the cultural capital of
India. A combination of archaeology, mythology, geography, art
and history makes Varanasi a great center of Indian culture.
Though Varanasi is associated mainly with Hinduism and
Buddhism but one can find glimpse of many religious beliefs,
types of worship and religious institutions at Varanasi. It is
amazing to see the primitive worship cults being practiced at
Varanasi.

Varanasi had population of 3,682,194 of which male and female were

1,928,641 and 1,753,553 respective including 1, 599,260 total urban
population. Due to time and cost constraints only 150 respondents were
selected for getting the primary data by direct interview method. To
study the market trends and brand preferences of edible oils, primary
data is collected by using a detailed questionnaire which was
administered to a small sample of 150 retailers as well as commercial
shops selected on the basis of convenience sampling method. The study
has been carried out in the urban areas of Varanasi city.

COMPETITOR

Mayur: Refine vegetable oil (Active Light)

30
GRSL: Refine palm olein oil
Bawarchi: Queen Gold.
Nature Fresh: Refined soya bean oil.
Shaffola soya refined oil.
Fortune: Refined soya bean oil.
Ruchi: Refined soya bean oil.
Ruchi: Ruchi gold refined palm olein oil.

31
 Objective of the study

The main purpose of the study was to know the consumer behavior,
tradition and awareness of JVL Agro Industries product among the
people; to measure the effective of electronic media; to analyze the
media behavior of the people; and to identify the first source of
information for consumer products.

The study has been conducted to collect the information about

tradition and consumer behavior for a particular group, and the role of
different source of information in buying a product.

The main objectives of the study as follows:

 To know the JVL Agro Industries Product awareness among the

people.

 To measure the effectiveness of Distribution channel of the JVL

AGRO INDUSTRIES.

 To analyze the consumer behavior in the Neemrana Market.

 To identify first source of information about product.

 To identify the change in attitude of the consumer due to

electronic media.

To identify the factors which affects the change in decision of the consumer

32
RESEARCH METHODOLOGY:

According to Clifford, woody research comprises defining and redefining

problems, formulating hypothesis or suggested solutions; collecting, organizing
and evaluating data; making deductions and reaching conclusions; and at last
carefully testing the conclusions to determine whether they fit the formulating
hypothesis.

“Marketing research is the systematic design, collection, analysis and reporting of

data and findings and relevant to specific marketing situations facing the
company”.

Research is, thus, an original contribution to the existing stock of

knowledge making for its advancement. It is the pursuit of truth with the help of
study, observation, comparison and experiment. In short, the search of
knowledge through objectives and systematic method of finding solution to a
problem is research. The systematic approach concerning generalization and the
formulation of theory is also research.

33
34
OBJECTIVES OF RESEARCH:

The main aim of research is to find out the truth which is hidden and which has
not been discovered yet. However, each research study has its own specific
purpose. Theses can be –

1. To gain familiarity with a phenomenon or to achieve new insights into it

(exploratory or formative research studies).

2. To portray accurately the characteristics of a particular individual, situation or a

group (descriptive research).

3. To determine the frequency with which some thing occurs or with which it is
associated with something else (diagnostic research).

4. To test a hypothesis of a casual relationship between variables (hypothesis –

testing research).

35
Applied Research: It aims at finding a solution for an immediate problem
facing a society or an industrial/ business organization.

Fundamental Research: It mainly concerned with generalizations and with the

formulation of a theory.

Quantitative Research: It is based on the measurement of quantity or

amount. It is applicable to phenomena that can be expressed in terms of quantity.

Qualitative Research: It is concerned with the qualitative phenomenon, i.e.,

phenomena relating to or involving quality or kind .

Conceptual Research: It is related to some abstract ideas or theory.

Empirical Research: It is data- based research, coming with conclusions,

which are capable of being verified by the observation and experiment

Diagnostic Research: Such a research fallow case -study method or in-

depth approaches to reach the basic casual relation.

Exploratory Research: The objective of this research is the development of

hypothesis rather than their testing.

MY RESEARCH:

I was gathering the consumer behavior of the JVL Agro Industries product in
Neemrana Region, which is being done by me first. Therefore, my research is
exploratory research.

36
RESEARCH DESIGN
37
A research design is the arrangement of conditioned for collection and analysis of

Data in a manner that aims to combine relevance to the research purpose which

economy in procedures

So it is clear from the above definition that very first step in the process of

marketing research is systematic design which can be defined as a specification

of methods and procedure for acquiring the information need to structure or solve

problems.

The main characteristics of research design can be summarized in two

words:

 ANTICIPATION

 SPECIFICATION

38
FUNCTIONS OF RESEARCH DESIGN:

 STATEMENT OF EVIDENCE NEEDED TO SOLVE THE PROBLEM.

 ANTICIPATION OF WHAT WILL BE DONE WITH DATA TO PROVIDE

ANSWER TO PROBLEMS.

 SPECIFICATION OF EVIDENCE FROM WHERE IT WILL BE

OBTAINED AND HOW.

 STATEMENT OF BASIC SCHEMES WHEREBY ANSWERS WILL BE

REVEALED AND VALIDATED.

 GUIDE FOR THE CALCULATION AND APPROVAL OF THE

FEASIBILITY AND COST OF THE PROJECT.

 REVISION OF BLUE PRINTS OR PLAN FOR GUIDING THE WORK.

TYPES OF RESEARCH DESIGN:

There are three types of research design: -

1. Research design in case of exploratory research studies.

2. Research design in case of descriptive and diagnostic research studies.

3. Research design in case of hypothesis – testing research studies .

39
MY RESEARCH DESIGN:

My Research was exploratory research so I am discussing only exploratory

research design. In exploratory research design hypothesis is developed on the

basis of the influencing variables, which are available. The main purpose to do

research design is to find new ideas for which the researcher must always

remain alert. The possibilities of ideas are explored but in case a better idea is

found the focus of investigation gets change. There are three principle stages of

exploratory research design.

FIRST STAGE : Survey of secondary information sources.

SECOND STAGE : Interviews with knowledgeable persons.

THIRD STAGE : Examination of situation that are analogues to the

Problem.

SAMPLING DESIGN:

A Sample design is a definite plan for obtaining a sample form a given

population. It refers to the technique or the procedure the researcher would adopt

in selecting items for the sample. Sample design may as well lay down the

number of items to be included in the sample i.e., the size of the sample .

40
DIFFERENT TYPES OF SAMPLE DESIGNS:

There are two types of sample designs.

1. Non – probability sampling.

2. Probability sampling.

MY SAMPLING DESIGN:

For the survey of India bulls consultancy Pvt. Ltd. In Lucknow City, my

respondents were approximately 5lacs. So the universe was large (5lacs) in this

case. Therefore, I took the sample in this case while I surveyed the universe.

Therefore, the data are approximately quite accurate.

METHODS OF DATA COLLECTION:

There are two types of data.

1. PRIMARY DATA

2. SECONDARY DATA

41
PRIMARY DATA:

The primary data are those, which are collected afresh and for the first time, and

thus happen to be original in character.

SECONDARY DATA:

The secondary data are those which have already been collected by someone

else and which have already been passed through statistical problem.

The methods of collecting primary and secondary data differ since primary data

are to be originally collected while in case of secondary data the nature of data

collection work is merely that of compilaion.

CLASSIFICATION OF SECONDRY DATA

 INTERNAL SECONDARY DATA

 EXTERNAL SECONDARY DATA

 INTERNAL SECONDARY DATA

1. SALES ANALYSIS

2. INVOICE ANALYSIS

42
 3. ACCOUNTING RECORDS

 EXTERNAL SECONDARY DATA

1. LIBRARIES

2. OITERATURE

3. PERIODICALS

4. CINSUS AND REGISTRARION DATA

 CENSUS OF POPULATION

 CENSUS OF AGRICULTURE

 CENSUS OF CATTLE

COLLECTION OF PRIMARY DATA:

We collect primary data during the course of doing experiment in an

experimental research but in case we do research of the descriptive type and

performs surveys, whether sample surveys or census surveys, then we can

obtain primary data either through observation or through direct communication

with respondents in one form or another or through personal interviews this

means that there are several methods of collecting primary data, particularly in

surveys and descriptive researches. The important ones are –

43
 1. Observation Method

2. Interview Method

3. Through questionnaires

4. Through Schedules

COLLECTION OF SECONDARY DATA:

When the researchers utilize the secondary data, then he has to look into various

sources from where he can obtain them. Secondary data may be either

published data or unpublished data. Usually published data are available in –

 Various publications of the central, state and local governments.

 Various publications of foreign governments or of international bodies and

their subsidiary organizations.

 Technical and trade journals.

 Books, Magazines and newspapers.

 Report and publications of various associations connected with business

and industry, banks, stock exchanges etc.

 Reports prepared by research scholars, universities, economist’s etc. in

different fields.

44
FACTORS AFFECTING BUYING BEHAVIOUR CONSUMER OF
JVL AGRO INDUSTRIES PRODUCT:
 Demographics
 Geographics
DEMOGRAPHICS
Size of population: According to the census 2011,as of May2001,the
population of India stood at 1,027Million of which 742Million lived in rural
areas and 285 Millions in urban areas.

Literacy and education: According to the Census 2011,the Nation’s

average literacy rate is 65.4%.Exhibit 18.1 shows the growth in literacy
rate since 1951.

GROWTH IN LITERACY RATE:

YEAR LITERACY RATE%

2008 43.7%

2009 52.2%

2010 65.4%

2011 70.2%

GEOGRAPHICS:

45
We mentioned earlier that as of May 2011,the population of India stood at1027
Million,with742 million people living in rural areas and 285 million urban areas.In
terms of percentage 73% of population is in rural areas and 27% in urban areas.

CLASSIFICATION OF CONSUMERS BASED ON ECONOMIC STATUS

 The affluent group

 The middle class

 The relatively poorer section

 The BPL section

LIMITATION OF THE STUDY

The effectiveness of project and consumer behavior is measured in keeping in mind

the constraints and limitation given below:

 The present study was confined to Neemrana and its adjoining areas. The
findings of this study may not applicable to other areas.
46
 The limitation and biasness of sampling techniques used in this study may
influence the findings of this study.

 Due to limitation of time and resources, all the possible factors influencing
the report could not be considered.

 The study of tradition and consumer behavior may not well over a period
of time4 due to various improvements in the present electronic media.

47
 FACTS AND FINDINGS

Consumer Behavior and Marketing Strategy

The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how

 The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);

 The psychology of how the consumer is influenced by his or her

environment (e.g., culture, family, signs, media);

 The behavior of consumers while shopping or making other marketing

decisions;

 Limitations in consumer knowledge or information processing abilities

influence decisions and marketing outcome;

 How consumer motivation and decision strategies differ between products

that differ in their level of importance or interest that they entail for the
consumer; and

 How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups,

or organizations and the processes they use to select, secure, use, and dispose

of products, services, experiences, or ideas to satisfy needs and the impacts that

these processes have on the consumer and society." Although it is not necessary

to memorize this definition, it brings up some useful points:

1 Either behavior occurs for the individual, or in the context of a group (e.g.,

friends influence what kinds of clothes a person wears) or an organization

48
 people on the job make decisions as to which products the firm should

use.

2 Consumer behavior involves the use and disposal of products as well as

the study of how they are purchased. Product use is often of great interest

to the marketer, because this may influence how a product is best

positioned or how we can encourage increased consumption. Since many

environmental problems result from product disposal (e.g., motor oil being

sent into sewage systems to save the recycling fee, or garbage piling up at

landfills) this is also an area of interest.

3 The impact of consumer behavior on society is also of relevance. For

example, aggressive marketing of high fat foods, or aggressive marketing

of easy credit, may have serious repercussions for the national health and

economy.

There are four main applications of consumer behavior:

1 The most obvious is for marketing strategy—i.e., for making better

marketing campaigns. For example, by understanding that consumers are

more receptive to food advertising when they are hungry, we learn to

schedule snack advertisements late in the afternoon. By understanding

that new products are usually initially adopted by a few consumers and

only spread later, and then only gradually, to the rest of the population, we

learn that (1) companies that introduce new products must be well

financed so that they can stay afloat until their products become a
49
 commercial success and (2) it is important to please initial customers,

since they will in turn influence many subsequent customers’ brand

choices.

2 A second application is public policy. In the 1980s, Acutance, a near

miracle cure for acne, was introduced. Unfortunately, Acutance resulted in

severe birth defects if taken by pregnant women. Although physicians

were instructed to warn their female patients of this, a number still became

pregnant while taking the drug. To get consumers’ attention, the Federal

Drug Administration (FDA) took the step of requiring that very graphic

pictures of deformed babies be shown on the medicine containers.

3 Social marketing involves getting ideas across to consumers rather than

selling something. Marty Fishbein, a marketing professor, went on

sabbatical to work for the Centers for Disease Control trying to reduce the

incidence of transmission of diseases through illegal drug use. The best

solution, obviously, would be if we could get illegal drug users to stop.

This, however, was deemed infeasible. It was also determined that the

practice of sharing needles was too ingrained in the drug culture to be

stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein

created a campaign that encouraged the cleaning of needles in bleach

before sharing them, a goal that was believed to be more realistic.

Segmentation
50
Although the text makes references to segmentation, this issue is not discussed

explicitly in much detail. However, segmentation is important in consumer

analysis because understanding the consumer will allow us segment the market

more meaningfully.

Segmentation basically involves dividing consumers into groups such that

members of a group (1) are as similar as possible to members of that same

group but (2) differ as much as possible from members other segments. This

enables us then to "treat" each segment differently—e.g., by:

1 Providing different products (e.g., some consumers like cola taste, while

others prefer lime)

2 Offering different prices (some consumers will take the cheapest product

available, while others will pay for desired features)

3 Distributing the products where they are likely to be bought by the targeted

segment.

In order for a segment structure to be useful:

1 Each segment must have an identity—i.e., it must contain members that

can be described in some way (e.g., price sensitive) that behave

differently from another segment.

51
 2 Each segment must engage in systematic behaviors (e.g., a price

sensitive segment should consistently prefer the low price item rather than

randomly switching between high and low priced brands).

3 Each segment must offer marketing mix efficiency potential—i.e., it must be

profitable to serve. For example, a large segment may be profitable even though

the competition it attracts tends to keep prices down. A smaller segment may be

profitable if, for example, it is price insensitive or can be targeted efficiently (e.g.,

if its members consistently subscribe to one magazine where all the company’s

advertising can be put). Some segments are not cost effective. For example, a

small group of consumers would love to have a no-sports news channel (similar

to CNN), but we are just too small a group to profitable.

52
Group Influences

Humans are inherently social animals, and individuals greatly influence each

other.

A useful framework of analysis of group influence on the individual is the so

called reference group—the term comes about because an individual uses a

relevant group as a standard of reference against which oneself is compared.

Reference groups come in several different forms. The aspirational reference

group refers to those others against whom one would like to compare oneself.

For example, many firms use athletes as spokespeople, and these represent

what many people would ideally like to be. Associative reference groups include

people who more realistically represent the individuals’ current equals or near-

equals—e.g., coworkers, neighbors, or members of churches, clubs, and

organizations. Finally, the dissociative reference group includes people that the

individual would not like to be like. For example, the store literally named The

Gap came about because many younger people wanted to actively dissociate

from parents and other older and "uncool" people. The Quality Paperback Book

specifically suggests in its advertising that its members are "a breed apart"

from conventional readers of popular books.

53
Personality and consumer behavior.

Traditional research in marketing has not been particularly successful in finding a

link between personality and consumer behavior. Part of the problem here is that

much of the theory has been developed by clinical psychologists who have

tended to work with maladjusted people. Not surprisingly, research that sought to

predict, based on standard personality inventories, which kinds of consumers

would buy Chevrolets as opposed to Fords was not successful.

Situational influences

Specific circumstances often influence consumer behavior. For example,

consumers in a rush are likely to take the most convenient product available.
Consumers whose attention is demanded elsewhere are likely to disregard
commercial messages. Consumers shopping for a special occasion (e.g., a
wedding) may buy different products.

54
 ANALYSIS &
INTERPRETATION
DATA ANALYSIS

55
For my project I have taken 75 sample from rural area
. The survey conducted in rural area is given followed
by urban area. In rural area majority of people using
vegetable oil compared to the refined oil so my survey
in rural area concentrated on vegetable oil and people
in urban area using refined oil, so in urban area my
survey is based on refined oil.

56
Qu. Do you know about the brand Jhoola?

EMBED Excel.Chart.8 \s

INTERPRETATION: From the above diagram it is clear that Jhoola is a

well known brand in rural area.

57
Q. Which brand of edible oil do you use?

58
EMBED Excel.Chart.8 \s

INTERPRETATION:
In the survey it was found that Jhoola is mostly used brand of vegetable oil followed by dalda and
fortune. People using jhoola brand saying that the quality of this brand is very good as compared
to others. The items made of jhoola can be kept for a long time.

59
Q. From where did you get the information about the brand you are using?

EMBED Excel.Chart.8 \s

60
INTERPRETATION:
In rural area people are not much aware about any product and which brand
retailer give them they know about that product. Most people say that they get
the information from the retailer.

Some knows from friends & neighbors and only 9 % people know about by
advertisement in rural areas.

Q. On what basis do you select edible oil?

61
INTERPRETATION:

As per the chart consumer give their highest preference to price

while selecting the edible oil. People living in rural areas wanted quality, taste, health all but on a
reasonable low price.

62
Q. Which type of packaging do you prefer?

EMBED Excel.Chart.8 \s

63
INTERPRETATION:
From the above chart we can see that people mostly prefer pouch type

packaging. Once people bought oil in bottle or jar then after using the oil the refill it with the oil
in pouch because the cost of oil in pouch is lower than that of bottle and jar.

Q. Which package size do you prefer?

64
EMBED Excel.Chart.8 \s

INTERPRETATION:
In rural area people are more interested to buy oil in package size of one litre
followed by 500 ml. people are not buying anything in bulk so they prefer to buy
small size pack.

65
Q. If you are given any offer on purchase of oil then which type of offer would you
like to get?

66
EMBED Excel.Chart.8 \s

INTERPRETATION:
As per the opinion of the respondents 56% people prefer cash discount

while purchasing the edible oil.

67
Q. How often do you purchase oil?

68
EMBED Excel.Chart.8 \s

INTERPRETATION:
Majority of people in rural area buy oil weekly. They buy product in less amount
so they go and buy oil weekly.

69
Q. Who makes the decision of purchasing oil in your house?

EMBED Excel.Chart.8 \s

70
INTERPRETATION:
From the above chart it is clear that in rural area husband and wife both are
responsible for selecting the oil.

Q. Have you seen any advertisement of any edible oil company?

71
EMBED Excel.Chart.8 \s

INTERPRETATION:

From chart we can say that only 7% people have seen the

advertisement of any oil brand.

72
Q. where have you seen that advertisement?

73
EMBED Excel.Chart.8 \s

INTERPRETATION:

From the above pie chart it is clear that majority of people have seen the
advertisement at the retailer shop.

74
75
76
Qu. Do you know about the brand Jhoola?

EMBED Excel.Chart.8 \s

77
INTERPRETATION: From the above diagram it is clear that Jhoola is
not a well known brand in urbanarea.Jhoola brand needed
promotion in urban areas.

Q. Which brand of edible oil do you use?

78
EMBED Excel.Chart.8 \s

INTERPRETATION:
In the survey it was found that fortune is mostly used brand of sdible oil followed by stayfit and
mahakosh. They say that anyone can get fortune oil at every shop. The quality and packaging of
fortune attract people.

79
Q. How do you know about the brand you are using?

EMBED Excel.Chart.8 \s

80
INTERPRETATION:
From the data it is clear that most people know about the brand through
advertisement in urban area followed by friends & neighbors then retailer. Any
new product come into the market then retailer tell them about the products and
suggest them to use once.

Q. On what basis do you select edible oil?

81
INTERPRETATION:

As per the chart consumer give their highest preference to advertisement and 21 people says
about health consciousness while selecting the edible oil and only 8% people select the oil on the
basis of taste, they say taste of every oil is nearly the same.

82
Q. Which type of packaging do you prefer?

EMBED Excel.Chart.8 \s

83
INTERPRETATION:
From the above chart we can see that people give nearly equal preference to bottle and pouch
packaging. 44% people like bottle while 41% people like pouch.

Q. Which package size do you prefer?

84
EMBED Excel.Chart.8 \s

INTERPRETATION:
In urban area people are more interested to buy oil in package size of one litre
also followed by 2 litre and 5 litre.

85
Q. If you are given any offer on purchase of oil then which type of offer would you
like to get?

EMBED Excel.Chart.8 \s

86
INTERPRETATION:
As per the opinion of the respondents 76% people prefer free gift compared to cash discount
while purchasing the edible oil.

Q. How often do you purchase oil?

87
EMBED Excel.Chart.8 \s

INTERPRETATION:
People in urban area prefer to buy edible oil on monthly basis. They
made the budget of one month then buy the thing for the whole
month. About one third of population buy oil weekly.

88
Q. Who makes the decision of purchasing oil in your house?

89
EMBED Excel.Chart.8 \s

INTERPRETATION:
From the above chart it is clear that in urban area mostly housewife decide which
brand edible oil they use and in 9% families children decide which brand to use.

90
Q. Have you seen any advertisement of any edible oil company?

EMBED Excel.Chart.8 \s

91
INTERPRETATION:

From chart we can say that 96% people have seen the advertisement of any oil brand. People in
urban area are aware about the advertisement of edible oil company.

Q. where have you seen that advertisement?

92
EMBED Excel.Chart.8 \s

INTERPRETATION:

From the above pie chart it is clear that majority of people have seen the
advertisement on the TV followed by newspaper then retailer shop.

93
  FINDINGS
From this project we can conclude that
 Soyabean oil is the most preferred type of edible oil.

 Fortune is most preferred brand of edible oil.

 People are mostly aware about the brands which are

advertised on television,radio, hoardings, newspapers etc.

 Most of respondents give their first priority to the quality

of edible oil while purchasing edible oil.

 Respondents mostly prefer oil that are accompanied with

some type of offers/schemes.

 Respondents mostly prefer pouch type of packaging

94
RECOMMENDATION & SUGGESTIONS
1. JVL Agro. should emphasize on improving the quality
of its products, inferring from the consumers complains
about this aspect.

2. It should organize rigorous advertising campaigns in

order to make general mass aware of its products.

3. Scheme implementation strategy shall be made efficient

to ensure scheme implementation effectively.

4. Aggressive marketing strategy should be adopted by

JVL. Agro in order to enforce its products in the
market.

95
 BIBLOGRAPHY

BO
OK SUPPORT-

 JVL AGRO INDUSTEIES LTD ANNUAL REPORT 2010-11

 YEARLY MAGAZINE OF JVL.
 BOOK OF MARKETING BY PHLIP KOTLER

WEB SUPPORT –
 From the company website, (HYPERLINK
"http://www.jvlagro.com"www.jvlagro.com).

 Search engine GOOGLE.

96
 QUESTIONNAIRE

JVL AGRO INDUSTRIES BISCUITS

DATE: _______________ CITY: ______________________

Type of outlet: A/B/C

Question pertaining to retailer profile:

NAME OF THE SHOP: _____________ CONTACT PERSON:

___________

Address: ______________________ Tel. No.: __________________

Question pertaining to supply of biscuits:

1. Are JVL AGRO INDUSTRIES biscuits available in your shop?

[ ] YES [ ] NO

2. If YES, Which brands are available?

JVL Agro Elaichi Cream Milk Shakti Marie Glucose-V

Industries-G

Krackjack Crunchi K.C.Butter C. Cracker

Monaco Hide & Seek Marie Choice Cashew

Chocolate Kreams Matfair Cookies Fun Center

Cream chocklate

97
Orange Kesar Bite Galaxy Cookies Coconut
Cream Crunch

3. If No, What is the reason for non-availability of

JVL AGRO INDUSTRIES?

[ ] No regular visit [ ] Replacement Problem

[ ] Problem with Distributor

4. If No, Reason for non-availability of Milk Shakti?

[ ] Problem with supply [ ] People don’t like it

5. What is the Source of procurement?

[ ] Distributor [ ] Whole Saler

[ ] Direct

6. Which other Biscuits brands are available?

(a) _________________ (b) ___________________

(c) _________________ (d) ___________________

7. Which Brands are mostly selling?

[ ] JVL Agro Industries [ ] Britania

[ ] Priyagold [ ] Other

8. What extra quality our competitors have?

9. What are the average monthly sales of JVL AGRO INDUSTRIES?

98
 [ ] Below 1000 [ ] 1000 to 3000

[ ] 3000 to 5000 [ ] Above 5000

10. Would you like to give any suggestion regarding proper supply?

____________________________________________________________

Super Stockist Name: Signature of Retailer

Thanks a lot for spending your precious time on our queries. Your opinion means

a lot to us. We look forward to be serving you soon.

99
 BIBILIOGRAPHY

BOOKS-

Marketing management- Philip Kotlar

Element of marketing management-Pradeep Kumar

Research methodology- C.R. kothari

Public Relation- Dewakar Sharma

WEBSITE

www.msnsearch.com

www.advancesales.com

www.consumerphycologist.com

www.google.com

100