CONTENTS

CHAPTER -1 INTRODUCTION 1. INTRODUCTION 2. OBJECTIVEVS 3. METHODOLOGY 4. LIMITATIONS CHAPTER -2 PROFILE OF THE COMPANY 1. COMPANY DETAILS 2. ORGANISATIONAL AND CHART 3. PRODUCT PROFILE 4. ABOUT MACHINARY 5. PRODUCTION PROCESS 6. MARKETING AND QUALITY CONTROL CHAPTER -3 ABOUT THE COMPANY 1. IMPORTANCE OF THE COMPANY 2. MARKET SEGMENTATION 3. BENEFITS OF MARKET SEGMENTATION CHAOTER-4 CHAPTER-5 ANALYSIS AND ITERPRTATION OF DATA FNDINGS AND SUGGESSTIONS BIBILOGRAPHY ANNEXURE

CHAPTER - 1

INTRODUCTION

INTRODUCTION

Man doesnt live by bread alone. For balanced diet, some fats are Indispensable. Oils or fats are store houses of energy. They contain twice as much energy as carbohydrates or proteins. Oils provide essential fatty acids, serve as carriers of vitamins and improve the Palability of foods. They play an important role in promoting growth, correcting deficiencies, maintaining skin health and immunity against infections. The most commonly used edible oils in India are groundnut oil,mustard oil, sunflower oil, and coconut oil.

GROUNDNUT OIL: - Groundnut oil is the main contribu

to Indian edible oil consumption. From the health point of view, it is nor healthy, though tasty. Its production has increased over years from 11.88 lakh tones in 1965- 86 to 19.36 lakh tones in 1994-95 and is still increasing.
.

SUNFLOWER OIL: - It is a known fact that cholesterol

content in groundnut oil is more than sunflower oil. Considering this, the physicians has done a research work in sunflower seeds and discovered that sunflower refined oil is better for health.

RAPSEED AND MUSTARD OIL: - Rapseed and mustard

oil is second most important oil because of its potential use in food Processing industry, a part from these edible it is also used in polymers, inks pharmaceuticals and oleo chemicals.

INDIAN EDIBLE OIL SCENARIO

India is one of the leading oil seed producing countries in world. Indian being a large vegetarian country with little animal fat production and ban on oil imports, the entire fat requirement is met through vegetarian oils. The population growth of 2.15 p.a. and growing economic prosperity, low domestic oil prices as well as greater awareness arising out of the communication revaluation has resulted in demand growing. It

is predicted that India need 10 million tones of vegetable oil by year 2000. To meet the demand the government of India has reduced import

duty from 30% to 20%. India is concentrating its efforts on increasing the yield per hectare by conducting researches to evolve high yielding hybrid Variety seeds.

OBJECTIVES
Modern proteins Limited is the biggest oil manufacturing company in kurnool. Producing Groundnut Oil. The production commenced from

1977. the sales of the company are very high when compared to other brand due to price and quality of oil. Due to above said marketing gains in oil industry the study has been undertaken with a view to gain some inside to the intricacies of market technology. The essence of study is to derive answers for certain questions.

The main study are:

objectives

of

the

1. To locate the target customers of M.P. Ltd., by way of Market segmentation. 2. To know the buying behavior of actual customers. 3. To reveal the factors behind M.P. products success

METHODOLOGY
The method used for the present study is survey method. Data is Collected from field survey by personal interviews with the help of Questionnaires.

Primary Data is collected with the help of questionnaires.

Questionnaires were uniform for all consumers. Pilot survey was Conducted on 10 consumers. Necessary alterations were made in the Questionnaires, depending on the instructions.

Secondary Data is collected from 100 consumers. These

samples were collected from different areas in kurnool. The consumers were interviewed by asking questions from the questionnaires to gather the information. Consumers are mainly literate.

LIMITATIONS
Every study is subject to certain constraints. They form the limitations for the study such as limitation for the study is

1. The study is confined to kurnool only

2. The survey has not given any attention to other products other than products of MP Ltd., 3. The project was supposed to be completed within the 4 weeks only. 4. Of the entire segmentation variables, I have considered few variables, Which are relevant to my project. 5. The survey was confined to 100 customers only. 6. The survey is purely restricted to consumers of MP Oils Ltd.,

CHAPTER 2

PROFILE OF THE COMPANY

Company details: ADMINISTRATIVE OFFICE & FACTORY Year of establishment & Incorporation Year of commencement of Business

MP OIL INDUSTRIES
plot no. 1- 12, industries estate, Kalluru, Kurnool.

1975

1977

Area covered by the company Authorized capital Issued capital Subscribed capital Promoter and managing director Chairman Executive Director Reddy Management BOARD

11.2 acres 2 crores 1.68 crores 1.64 crores Dr. B.R.REDDY Mr. Vinod Beth Mr. B. Visweswara

MD, Chairman, ED &

OF DIRECTORS

Products

Groundnut Oil (un refined) Groundnut Oil (refined) Sunflower Oil (refined) MP Solvent SF Oil

(refined) MP Solvent GN Oil (refined) Brands MP Oil (groundnut Oil)

Sunsupreme(Sunflower Oil)

DESCRIPTION: Modern proteins Limited is the biggest oil

manufacturing company in Kurnool zone. Basically this was started as a small scale manufacturing unit but now it has out grown its original size and has become the biggest oil manufacturing company in kurnool. Though the company found a lot of competition both from within and outside the city, it gained and maintained good reputation due to its Sincerity to work. The company is named for its quality standard quality products.

LOCATION: Modern Proteins Limited is situated in the industrial

estate at Kurnool and covering an area of over 11.2 acres and plots Numbering 1 to 2.

ESTABLISHMENT: The Company was established in the year

1975 and its production commenced from 1977.

PROMOTION: Dr. B.R.REDDY promoted the company. MANAGEMENT: Dr.B.R.Reddy is acting as the managing Director,
Mr.B.Visweswara Reddy as the Executive Director and Mr. Vinod

Beth as the Chairman of the company 8 Board of Directors.

CAPITAL OUTLAY: The authorized share capital of the company

is Rs.2 crores divided into 20 lakhs equity shares of 10 /- each. The capital issued for the public subscription is Rs.1.68 crores only where as the subscribed capital stood at Rs. 1.64 crores only.

INSTALLED CAPACITY: The installed capacity of oil is 5,000

metric tones per annum extracted cakes is 10,000 metric tones per annum, that of refined oil is 5,000 metric tones per annum and that ofsoap stock is 500 metric tones per annum.

RAW MATERIALS:The raw materials used in the process are

groundnut seeds and oil cakes and sunflower seeds and cakes. Ground Pods are produced from Kurnool Market Yard, Adoni Market Yard and even directly from farmers. Cakes are produced from local oil millers. Sunflower is grown extensively in Karnataka. So, its seeds and cakes are brought from Karnataka cultivators and oil mills. It is a well-known fact that Andhra Pradesh ranks first in Groundnut cultivation.

PRODUCTS: The main products produced by the company are

groundnut oil both refined and unrefined and sunflower refined oil.

BY-PRODUCTS: The by-products extracted in the course of oil

extraction are soap stock, spent fillers each and de-oiled cakes. Soap stock is used in the manufacture of incense stick, oil cakes richer in Protein, carbohydrates, materials and crude fiber. Most of food products particularly infant foods.

EMPLOYENT: The company is providing permanent employment

opportunity to over 100 members of different grounds such as technical and non-technical and office staff. The company regularly employees 150 members on daily wage basis. They are appointed through contractors.

SHIFTS: According to the rules aid by the Factories Act, Modern

Protein Limited works in 3 shifts per day of 8hours each.

1. Shift: 8.00 am to 4.00 pm 2. Shift: 4.00 am to 12.00 pm 3. Shift: 12.oo am to 8.00 am 50 workers are usually engaged per shift.

DISTRIBUTIONThe Companys products are distributed over

Considerable areas. The main concentration is in local domestic market Allagadda, Nandyala, Nandi Kotkur, kadapa and Ananthapur.

The Products are also marketed in Maharashtra, Gujarath, and West Bengal. The sales is made through containers of 15Kg tins, 180 Kg barrels and Tankers.The company markets its products under the brand MP POILS and SUNSUPREME.

NATURE OF CONTRACTS: The Company follows two methods

of setting contracts for purchase and sale. They are cash and credit basis. The credit us usually up to 15 days.

TURNOVER: At first this company has good turnover in crores till

October 1993-94. The company has achieved a turnover of Rs. 25 crores in 1996-97.The company has given processing unavoidable problems faced by the company. For this reason the turnover is Rs.1.51 chores only. The turnover of the company in respective years is columned as follows SALES AND NET PROFIT OF MODERN PROTIENS LIMITED: Particulars Sales of oil and By products (In crores) 55.61 82.49 95.90 2005-06 1.51 2006-07 19.85 2007-08 24.60

Net profit (in Lakhs)

ORGANISATION STRUCTURE OF M.P. LIMITED

The success of an organization purely depends upon the efficiency of its management and the soundness of decisions they take. Efficiency of management refers to how successfully the company is achieving its objectives such efficiency of management depends upon the capacity of managers and how the managements structures. Proper capable persons must be appointed in important decisions according to their strengths and weakness. There are three levels of management in MP Ltd., viz., 1. Top level management 2. Middle level management 3. Lower level management.

TOP LEVEL MANAGEMENT: This level consists of 8 Board

of directors, chairman, Managing Director and Executive Director. The managing director Dr. B. R. Reddy takes active steps in the policy formulations and interpretations assisted by the Executive Director Mr. B. Visweswara Reddy. The Board of Directors is the body responsible for policymaking appeal

and review of operations. Mr. Vinod Beth, the chairman of the Company acts as the presiding officer of meetings. On the regarding the management of the company.

MIDDLE LEVEL MANAGEMENT: There are four

departments in Modern Proteins Ltd., production, marketing, Finance, and quality control. The heads of these departments from middle level management. Their job is to receive instructions from the top-level management and guide their sub ordinates. The most important part of their job lies in at Par with them.

LOWER LEVEL MANAGEMENT: The sub ordinates of

different heads of departments from this level in modern proteins limited. This will have either directly or indirectly contact with the workers. They are uncharged of stores, purchases and other sections and foremen in respective departments.

PRODUCT PROFILE
ABOUT GROUNDNUT OIL
The extracted amount of oil from groundnut varies from 42% to 46% depending on fertility and nature of soil. Red soil for groundnuts. Groundnuts are grown in Anantapur, Kadiri, Kurnool and Chittor Districts. Thus, Andhra Pradesh has secured a good position in this respect.Groundnut is a cheaper source of edible oil to the Indians. Groundnut plays a vital role. Nationally, it has a very useful and we can enjoy being more economical from every bit of groundnut if we use its effectively and efficiently.

BENEFITS OF GROUNDNUT OIL

Some of the benefits of groundnut oil are.
1.Groundnut oil can be used for household purpose i.e., for cooking purpose. 2.Groundnut oil is a necessary ingredient of todays consumption. 3.The husk of the groundnut can be utilized ad fuel.

4.The oil cake obtained from the groundnuts will be used as cattle and poultry feed.

5.The soaps stock obtained while refining the oil will be used for manufacturing washing soaps bar soaps and toilet soaps.

ABOUT SUNFLOWER OIL

Sunflower seeds undergo the same process as the groundnut seeds. The seeds will be transferred to expelling department. Then the expelled oil and oil cake will be separated sunflower oil cakes will be sent to the solvent extraction plants and the extraction is similar to that of the groundnut oil extraction. From here the extracted oil will be sent to the chiller to remove the wax and further process takes place in refinery section for the purpose of refining. The sunflower oil expelled or extracted will contain fare fatty acids (F.F.A) as well as waxes. The F.F.A. will be removed in the same process as done in the case of groundnut oil, but there is another process to be undertaken in order to remove the waxes that can be removed in two ways by the help of different methods.

METHOD 1: In this method the oil is refined and cooled to 20c

temperature. The cooled oil is filtered in plated from filter cloth and oil will come out of the filter press. The waxes stacked to the filter cloth will be later scooped manually and will be sold to the soap manufacturers.

METHOD 2: In this method raw oil is chilled to 8 c to 10 c

temperature. Later the oil will be subjected to centrifuge where certain chemicals are added. With this, all the waxes are cooled and
thus, the oil and waxes will get removed separately. After this process the

sunflower oil will be refined by undergoing bleaching, deodorizing etc. Later on, after the oil is cooled, the refined sunflower oil will be packed and it will be ready for direct consumption.

ABOUT MACHINERY

1. Machinery 1 decorticator Parts: one sheet, a main drive, beaters, a fan and a screen separator Function: to separate just and seed. 2. Machinary 11 expeller Parts: it contains a man drive (motor) worm shaff and a cooking kettle. Function: To extract the oil from groundnuts. 3. Machinery 111 solvent extraction plants. Parts: cake breaker, extraction, evaporator, condensers, disalventiser, toaster, circulation pumps and ejections. Function: it extracts the oil from any grade of oil cakes, oil flakes and oil pillets. 4. Machinery IV neutralizer Parts: conical vessel, stirrer

Function: to remove the soap particles, caustic and free fatty acids.

5. Machinery v bleacher Parts: closed vessel, strrier, and steam oil Function: to remove color pigments i.e., red and yellow 6. Machinery VI deodorizer 7. Machinery- VII boilers Function: For every process in the manufacturing process, steam is very essential, boiler produces steam.

PRODUCTION PROCESS
Oils are extracted by any of the following methods: 1. Rotatory method. 2. Expelling method. In these, rotatory method is traditional and oil fashioned method. Bulls were used to extract oil, on the other hand expelling method is the modern method which is at present in use everywhere machines are used to expel the oil from oil seeds. This new method of oil production consists of 6 steps. 1. Decrdication: it is the process by which the husk and seed of a groundnut are separated.

2. Expelling: in this process, seed is poured into a kettle. The seed is subjected to some required temperature by steam. By crushing the seed we get oil one side and cake on the other side.

3. Solvent extraction: In this process the groundnut cake which is containing 05 to 8% and 9 to 12% of oil content is extracted with the help of Hexane a petroleum product. Oil and hexane together comes out of the extractor. This mixture of oil and hexane is called Messela 4. Nautralization: It is used for removing the fare fatty acids and soap particles. This can be done in two ways. 1. Batch type 2. Continuous type

5. Bleaching: HDT is used for bleaching. It removes unwanted colours of oil. 6. Deodorinzing: The main function of deodorizing is to remove. Odour of the oil. Deodorizer performs this function. Modern proteins Limited produces expelled oil and refined oil. So it undergoes all the above- mentioned steps in production of oil.

CHAPTER 3

ABOUT STUDY

THE

The current study entitled A Study of Market Segmentation of M.P. Oils is conducted to reveal the potential customer, their life style, their

family status etc., and help the management of MP Limited to formulate their policies and strategies accordingly.

IMPORTANCE OF THE STUDY

Modern Proteins Limited is a well-established organization in the Kurnool zone. It deals with manufacturing of edible oils and marketing of the same. organization. Marketing has become chief function for any Now -a-days different companies adopt different While promoting, the

techniques for promoting the products.

companies take into consideration different factors such as income level of potential customers, their tastes and habits, the geographic location in which they reside, price of substitute and alternative products, promotional activities of competitors, tracing out potential customers through market segmentation etc., the current study focuses on the market segmentation of MP Oils Limited, which could as a guidance for the company to promote its sales effectively. The present study discuss what is the role of market segmentation, how it effects different decisions taken by the management in increasing the companys sales etc. this study draws conclusions regarding the target customers, their food habits, their income levels, and their stage of families, their mode of purchasing and their attitude towards different oils. This will act as a guidance to the management as it reveals the ultimate customer of MP oils regarding why they purcherase the particular oil, what their benefit they derived from that, what are the influencing factors etc. so the

management keeps in mind such target and adopt strategies which effectively promote the sales of the company.

MARKET SEGMENTATION
As we are all aware, consumers widely differ in terms of place, time, perception and value. They are not homogenous. The difference must be studied carefully and suitable products must be offered to suit their needs, the market. In other words, is substituted it is subdivided into subgroups of consumers population where each sup group is identifiable, distinct and homogenous, differentiated marketing program can be developed for each sub group to improve consumer satisfaction and profitability of business.

DEFINATION
Market segmentation is the process of dividing the total heterogeneous market into several sub- markets called segments, each of which tends to be homogenous in all significant aspects

Markets are made up of buyers who differ in their buying habits, buying attitudes, their wants, income, sex, geographical locations etc., all these variables can be used to segment a market. DEMOGRAPHIC SEGMENTATION Buyers group differs in their requirements from the products and their marketing responses. The differentiations is based on certain

demographic variables such as age, children, teenage, youngsters, adults, middle aged, senior citizens, old people etc., sex (male, female) family size (no. of people residing in the family) family life stage (single, married without children, dependent children, independent children, old couple), income level (for example below 2000, 2000 to 5000, above 5000 etc), occupation man, (professional, farmer technical, wife, government employee, business house

unemployed, and pensioner , educational level(for example up to s.s.c., graduation, post graduation, and doctorate etc., religion 9 Muslim, Hindu, christen and nationality (INDIAN OR FOREIGNER),

GEOGRAPGHIC SEGMENTATION
Geographic location is usually the most popular common basic for market segmentation between the urban and rural markets. The factors usually referred for this type of segmentation are region, continent, country, state, district urban and rural characteristics and climatic conditions of the area.

PSYCHOGRAPHIC SEGMENTATION Psychographic segmentation either single or in combination with demographic segmentation is widely used in these days, dividing the buyers on the basis of their social class, life style, and personality traits. The most important point to be noted is that people of the same demographic differ to very great extent in psychographic profiles.

Psychographic is also called life style and attitude research, p sychographic can prove valuable for dignified and explain market, as consumers differences extend beyond demographics. It facilitates the selection of people who react in a particular manner to a particular emotional appeal and share common behavioral patterns buyers. By this method, the consumers can be classified into several broad types playboys and plain hoes, conservation and liberal, leaders and followers etc.,

USAGE SEGMENTATION
Segmentation is also based on the usage criteria whether the consumers are users, medium users or light or non-users. Heavy users accounts for volumes so, many companies target their efforts at this segment. As how the users are important for a company so and so the non-users. The non-users of company products may be users of the competitors product. There can also be ex-users of particular products. Markets are mainly interested in converting nonusers into users.

BENEFITS SEGMENTATION
A market is also segmented on the basis of the benefits people seek from the products. For example, low price, durability, use on special occasions etc. this segmentation requires identification of major benefits which people look for, the kinds of people who look for such benefits and the major brands which offers such benefits in case of

tooth paste benefit segmentation can be done on the basis of flavor, price product, appearance, brightness of the teeth and decay prevention. BENEFITS OF MARKET SEGMENTATION Segmentation strategy is a customer-oriented philosophy. offers the following specific benefits. It

1. Markets are in a better position to locate and compare marketing opportunities. Markets can be defined more precisely in terms of customer usage. 2. When customers needs are fully understood, the market can be effectively studies; suitable marketing programs can be formulated

and implemented which well is tuned with the demands of the markets. 3. Marketers can make final adjustments in their products marketing communications. 4.competitive strengths and weakness can be assessed effectively and marketing cam avoid unfair competition and creating customer demand, which is not being met by rivals, can more profitable use resources. 5. Segmentation leads to a more effective utilization of marketing resources.

PROCEDURE FOR MARKET SEGMENTATION

The market segments are rich can be identified by applying successive variable to subdivided a market. There is one common approach used by the marketing research firms. The procedure consists of three steps. 1) SURVEY STAGE: The researches conduct exploratory interviews and focus group to gain insight into consumers motivation, attitudes and behavior. Using the findings, the researchers prepare a formal questionnaire, to collect data on Attribute and their importance in ratings Brand awareness and brand ratings Product usage pattern Attitudes towards product category Demographic, psychographic and media graphics of the respondents.

2) ANALYSIS STAGE: Firstly, the researcher applied factors

analysis to the data to remove highly correlation variable, then the researcher applies cluster analysis to create a specified number of maximally different segments.

3) PROFILING STAGE: Each cluster is now profiled in terms of its

distinguishing attitudes, behavior, demographics, psychographics, and

media consumption habits each segment can be given a name based on a dominate distinguishing characteristics.

CHAPTER 4

ANALYSIS & INTERPRETATION OF DATA

FAMILY SEGEMENTATIONS CONSUMERS

S.no 1 2 3 4 Particulars Single Young married couple Young married couple with children Parents with dependent children

OF

MP

% of consumers 4% 8% 38% 50%

Source: QUESTIONNARE

FAMILY SEGEMENTATIONS CONSUMERS

OF

MP

Single 4%

Young married couple 8%

Parents with dependent children 50%

Young married couple with children 38%

Family stage is a very influential factor in consumers behavior because depending upon the stage his taste and preferences are constantly changing and there by his attitude towards the product also changes. For purchase. If he is married his wife or her husband will have the effect on the purchase. If the customer is married and he has children, the family consumption is influenced by not only the spouse but also by children. the analysis shows that parents with dependent children forms a major position in the market on which the management needs to concentrate. consumers in this category are 46%. Accordingly, the behavior changes depending upon the taste and preference of the children also. The percent of available

EDUCATIONAL STANDARD DIFFERENT MP CONSMERS

OF

S.no 1 2 3 4

Particulars Below V Standard V -X Standard Inter - Degree PG & Above

% of consumers 25 40 25 10

40 40 35 30 25 20 15 10 5 0 Below V Standard V -X Standard Inter Degree PG & Above 10 25 25

Of the 100 consumers selected, the level of education is from low level literate to post graduate and above. The frequency of distribution shows that a maximum of consumers are educated. They are not only considering the price but also are in search of the ultimate benefits of a product. Hence if the consumers are more educated, their demands for quality oriented products increased rather then on the amount they are going to spend.

OCCUPATION CONSUMERS

OF

DIFFERENT

1 2 3 4

Particulars Business Employees Professionals Others

Male 27 19 8 6

Femal e 0 18 7 15

Total 27 37 15 21

O the r s

15 6 7 8 18 19 0 27 5 10 15 20 25 30

P rofe s s iona ls

E m ploy e e s

Bus ine s s 0

OCCUPATIONS OF DIFFERENT CONSUMERS

The above statistical data shows that maximum numbers of consumers are employees this is followed by others, business people and professional. The clearly shows that the company needs to The company needs to play some concentrate on employees.

marketing strategies to attract customers.

DEMOGRAPHIC SEGEMENTATIONS
1. Income levels of MP consumers: S.no. 1 2 3 4 Income level 1000-5000 5000-10000 10000-15000 above 15000 No.of consumers 11 25 30 34

NO. CUSTOMERS 10005000, 11 500010000, 25 1000015000, 30

> 15000, 34

The income classification of consumers ranged from 1000-5000, 500010000, 10000-15000, and above 15000. this shows majority of

consumers fall in the average income group, which is characteristic feature of middle class customer. For a middle class consumer his/her buying behavior id dominated by the price, where as for higher income groups, price is not important but other factors like quality brand loyalty etc play significant role. But for a marketer, middle class consumers are easily available hence the management has to concentrate more on this group of consumers.

Usage consumption consumption of Edible Oil

Regular

Particulars Business men Employee Professional Others Total

Groundnut unrefined 8 6 0 6 20

Groundnut refined 5 12 5 6 28

Sunflower refined 15 19 10 9 53

20 18 15 16 12 14 10 12 9 8 10 6 66 8 5 5 6 4 2 0 0 B u s i n E sms p l P y o e e s s Oot nh ae lr s e oref i m en

19

The three types of oils from MP products are groundnut oil (refined, unrefined) and sunflower oil. With regards to consumption of these oils, the consumers of different occupations were taken into account on which the buying behaviors towards various oils of MP were studied. The data reveals that the employees are the major consumers of all three available types of oils.

In this category the regular consumers are 37%. Also 53% of majority consumers use only sunflower oil. The next priority goes to refined oils and the least is undefined oil. The employees going in for sunflower oil reveals the fact that they are health conscious. The price of sunflower oil is affordable to the consumers who are employed and whose income is average. After the people who practice business occupy employees the second place priority and their share is 27 % of which majority of 15% are going for sunflower oil. Hence the entire data reveals that irrespective of the occupation, consumers of sunflower oil, and rather then other types of groundnut oils.

OIL

MONTHLY CONSUMPTION OF Edible

S.no 1 2 3 4

Consumption Below 1 Kg 1 to 3 Kg 3 to 5 Kg Above 5 Kg

No.of consumers 0 48 22 30

A bove 5 K g 3 to 5 K g 1 to 3 K g B elo w 0 K g 1 0 22

30

48

10 20 30 40 50

Based upon the monthly consumption of oil, the survey revealed that the more number of consumers monthly consumptions of oil is above average. Their income is average and they fall in the category of

middle class.

Middle class consumers are usually rational and

economical in this outlook. Next priority is occupied by the consumers who consumer more than 5 kg. this level of consumers fall in the category of higher middle class but lower than higher class. In this class though monthly consumption is almost fixed but brand switching will be comparatively more. Where as for the middle class, consumers level of consumption also brand loyalty will be constant and stable. So, the management needs to trap these consistent and loyal consumers, in order to create a image of its own.

CONSUMPTION FREQUWNCY OF MP OILS

S. No 1 2 3 4 5 6

Particulars Once in week More than once in a week Once in ten days Once in fortnight Once in Month Less than once in month

%of Consumers 15 6 4 6 39 30

39 40 35 30 25 20 15 10 5 0 15 6 6 4 30

O n c e Mi no r O n c eO inn c eO inn c e ei n s t h a n e L s w e e k t h a nt e n d f a yr tsn iMg h tn o hn c e i n o o t o n c e in a m o n th w eek

The above survey reveals that the most consumers buy once in month. As the major consumer of the M.P. Oils is employees and business people who belong to middle class they actually buy the purchases in month when they get salaries.

Next priority goes to people who purchase less then once in a month.Their share is 30%.The consumers whose duration of consumption is less than once in month are usually well off. So, they dont purchase repeatedly rather buy in wholesome quantities. As the consumption is not fixed due to irregular flow of income and unforeseen happenings, the consumer may purchase in shifts. The above studies it is revealed that most consumers are purchasing one in month and less then one in a month as it is a consumer durable good.

USE OF MP OIL OVER YEARS

S. No 1 2 3 Particulars Less than one years 1 to 3 Years Above 3 Years % of Consumers 8 40 52

L e s s th a n o n e y e a rs , 8

A bove 3 Y e a rs , 5 2

1 to 3 Y e a rs , 4 0

The above figure clearly shows that maximum of consumers i.e., 52% have been consuming MP oils from above 3 years. This is because of its retaining and enduring quality. They are loyal to M.P. brand. New consumers are not turning towards M.P. Oils. This shows that M.P. Oils have to advertise their product to make it known to every common man.

BEHAVIOURAL SEGMENTATION
Its a common response to the product. It is also called as consumer response Approach. The consumer responds to the market offering are much more important which can be made as the basis for segmentation.

BENEFITS SOUGHT CONSUMERS

BY

MP

S.no 1 2 3 4 5 6 7

Particulars Good quality oil Good quality oil with low price Good quality oil at reasonable price

%of consumers 35 0 40

Good quality at high price 6 Moderate quality oil at reasonable price 11 Moderate quality at high price A feel of pride 8 0

8 1 M o d e r a t e q u a lit y o il a t r e a s o n a b le p r1ic e 6 G o o d q u a ilt y o il a t r e a s o n a b le p r ic e 0 G o o d q u a lit y o il 0 5

0 A f e e l o f p r id e

40 35

10 15 20 25 30 35 40

Majority of the consumers that is 40% are of the opinion that M.P. Oils are not Only of good quality but also at a very reasonable price 35% of consumers Justified its quality rather price since the consumer pulse is both quality and Price MP Oils has created an image for itself in the minds of the consumers.

Influencing consumers

Factors

for

MP

S.no 1 2 3 4 5

Factors Price Quality Advertisement Brand Loyalty Others

% of consumers 8 72 0 18 2

B r a n d L o y a lt y , O t h e r sP r2i c w , 8 , 18 A d v e r t is e m e n t , 0

Q u a l it y , 7 2

When consumers are buying certain products, their choice of going in for that Particular, products differ from consumer to consumer. Some may take only Quality, some may take availability, and some may Take only benefits and some may Even think of the product and its use, not only for the present but also for the future, into

consideration. While they go for a product. Since consumer tastes and preferences, demands are richly varied, different are the reasons. With regards to the survey on M.P.Oils, the majority of the consumer prefer quality Only and give next priority to brand loyalty. Just because consumers are more Quality oriented, M.P.Oils should always develop strategies to retain the quality of the oils irrespective of price fluctuations.

CHAPTER 5

FINDINGS & SUGGESSTION S

FINDINGS
1. Most of the consumer is educated and due to awareness of health they prefer sunflower oil rather then groundnut oil. 2. The purchase quantity of M.P. Oils is in large quantity rather then small quantity.

3. Majority of M.P. consumers are middle class and higher middle class. So, they are quality oriented. 4. It was found that use of M.P. Oil is decreased in the last year due to its non availability and lack of advertisement. 5. The consumption of M.P. product is average.

SUGGESSTIONS
1. As majority of consumers are using sunflower oil the company need to Product more quantity of sunflower oil. 2. since the majority of consumers are using 3-5 Kg and above 5kg the company can pack accordingly to their needs. 3. As majority of consumers income level is above 5000 that fall in the average income group the company should product good quality oil.

4. As the company product is not advertised. Many people do not know it. If the product is advertised it can reach even by the common people, which in turn increase the market share. 5. The company has to concentrate more in Kurnool Market so that transport cost will be reduced and it can sell its products at low price.

BIBLIOGRAPH Y

BIBLOGRAPHY
PRINCIPLES OF MARKETING - J.C. GANDHI

FUNDAMENTALS OF MARKETING

- WILLIAM STANON

MARKETING MANAGEMENT

- PHILIP KOTLER

QUESTIONNAIRE
1. Name 2. Age 3. Educational Qualifications 4. Occupation 5. Address 6. Family Monthly income 7. Family size/ stage: A. Single B. Young married couple C. Young married couple with children D. Parents with dependent children 8. Which edible oil do you consume regularly A. M.P. Groundnut oil B. M.P. groundnut refined oil [ ] : : : : : : [ ]

C. M.P. Sunflower oil 9. What is the monthly consumption of regular edible oil? A. Below 1 kg B. 1 to 3 kg C. Above 5 kg [ ]

10) What is the duration between two purchases a) Once in a week b) More then once in a week c) Once in 10 days d) Once in a fortnight e) Less than once in a month

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11) Rank the factors you consider while consuming that particular oil a) Price d) Brand loyalty b) Quality e) Others c) Advertisement

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12) What do you think in the benefit you get out of M.P. Oil a) Good Quality Oil b) Good Quality Oil with low price c) Good Quality at reasonable price d) Good Quality Oil at high price e) Moderate Quality Oil at reasonable price f) Moderate Quality Oil at high price g) A feel of pride

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13) Any suggestions for Modern Proteins Ltd. Please

THANKING YOU